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Home My WebLink About1993-073RESOLUTION 93-73 WHEREAS, the Board of County Commissioners of Indian River County, Florida (the "Board" and the "County", respectively) is contemplating the issuance of Water and Sewer Revenue Bonds, Series 1993, in an aggregate principal amount not to exceed $50,000,000 (the "Series 1993 Bonds"), as Additional Parity Bonds under Resolution No. 89-19 of the County, as amended and supplemented; and WHEREAS, it is necessary in connection with the marketing of the Series 1993 Bonds that the Preliminary Official Statement in connection with the Series 1993 Bonds (the "Preliminary Official Statement") be deemed "final" pursuant to Rule 15c2-12 of the Securities and Exchange Commission. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, that: SECTION 1. The Preliminary Official Statement attached hereto is hereby deemed "final" pursuant to Rule 15c2-12 of the Securities and Exchange Commission, except for "permitted ommissions" as permitted under said rule. Nothing contained herein shall prohibit any insertions, deletions or changes in the Preliminary Official Statement deemed necessary and/or desirable by the County Administrator. SECTION 2. This Resolution shall take effect immediately upon its adoption. { i RESOLUTION N0. 93-73 The foregoing resolution was offered by Commissioner Eaaert who �- moved for its adoption. The motion was seconded by Commissioner �siII�s and, upon being put to a vote, the vote was as follows: �`. Chairman Richard N. Bird Ave Vice Chairman John W. Tippin Aye Commissioner Fran B. Adams Ave Commissioner Carolyn K. Eggert Ave Commissioner Kenneth R. Macht Ave The Chairman thereupon declared the Resolution duly passed and adopted this _U day of _Mprrh 1993. BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA r (SEAL) - By: Richard N. Bird, Chairman Attest: J.effrdy K., arton, Clerk APPROVED AS 'TO FORM •AND ' LEGAL SUFFICIENCY Charles P. Vitunac County Attorney PRELIMINARY OFFiCiAI, S'TATF.AIENT DATED APRIL 2, 1993 Y ,G G m o p Rutingat Mootjy'at A! u Standard A Pooesi z; L6 Fitcht— o -c (FGiC Inured) See "Ratings" 1 eC earn e ,3. in the opinion of Bond Courws l, aurndng continuing compliance by to County with tzrtain covenant to comply with pirwisimm otthe Internal a tl1 Rnmlte Coded 1998, an amended, interest on the Series 19M Bonds is excluded (earn gnaw Income for purpcyea of federal incases taxaliol and is not an -- $ a iteMori" renames far of the federal alternative minimum tax imposed on individuals and ationo tinder existing statutes, regulations and ( caPw rat �� : althoag ih t should be noted flat in the case of corporations w Wined for federal income Wx purposes), such interest is 4kenioto account a o in determining adjusted cement earnings for purposes of much alternative minimum tax. Furthermore, in the opinion of Bond Counsel, this Series 1993 l o Bonds and the income therefrom are exempt from taxatim under the laws of the Stat of Florida, except as to estate taxes and taxes imposed byy Chapter s-� m 220, Florida Statutes, m interest, income or profit on debt obligations owned by corporations, banks and saving(. associations (see TAX EXSMI'TION" herein for Auther inf.tion). 0 0 $46,756,000* $3,410,000* INDIAN RIVER COUNTY, FLORIDA INDIAN RIVER COUNTY, FLORIDA a o Water and Sewer Revenue Bonds Water and Sewer Revenue Bonds X'_ Series 1993A Series 1999B � Datadt March 1, 199! Duel September 1, as shown below too `"- E .a The Water and Sewer Revenue Bonds, Seri" 1993A (the "Series 1D93A Bonds") and the Water and Sewer Revenue Bonds, Series 19WB (the 'Series IMB Bonds), (collectively, the "Seri" 1993 Bonds") are being issued by Indian River County, Florida (the 'County*) in fully registered form in 0 8 w denominations of MAW or any integral multiple thereof. Interest on the Seri" 1993 Ronde in payable semiannually on March I and September 1, m c 7 commencing September 1, 1983, by check or draft of NationsBank of Florida, N.A, Font Lauderdale, Florida, ms Paying Agent ('Paying Agent), made out of o v and mailed to the Registered Owner, as shown on the registration books of the County maintained by NationsBank of Florida, N.A, Fort Lauderdale, Florida am Bond Registrar ('Bond Registrar"), on the fifteenth day of the month next preceding the applicable interest payment data and as otherwise /• a described herein. The principal d the Series 1993 Bonds, when due, and any premium thereon will be payable upon presentation and surrender thereof at q{ E ,c the principal tatrust otrim d the Psyin Agent. The Series 1993A Bonds an subject to mandatory and optional redemption, prim to maturity as C:•.," a ry set IDrib herd Series 1893B Bands an su�ject to extranrdi nary mandatory redemption, prior to maturity as met forth herein. t The Series 1993 Bonds are being isuod pumamas t to the authority of the Const Lf tu tion and laws of the State of Florida, including Chapter 126. Florida e-• Statutes, and other applicable provisions of law (the 'Act') and Indian River County Resolution No. 93._,as the same may be amended and supplemented (the'Master Bond Resolution). cO a The Series 1993 Bonds an being issued by the County to provide funds, together with certain other legally available funds, to (1) retire certain outstanding bends d the County as described here!n, (ii) provide funds to make certain capitol Improvement and additims to the System (as herein • `:` �'- deIIrodj, (fit) nuke a deposit to the Reserve Account established under the Master Bond Resolution, (iv) fund the Sinking Fund in an amount to pay a O e portion d the interest Ant caring due on the Series 1993 Bonds, and (v) pay certain cost incurred in connection with the issuance of the Series 1993 •' fi •E Bonds, all as more partkulsAy described herein. Iwo a The payment of the principal of, and interest on the Seri" 1993 ponds when due will be insured by a municipal bond insurance policy to be issued simultaneously with the delivery of the Series 1993 Bonds by Financial Guaranty Insurance Company. ,.,.E tib, Financia) Cuaranly Insurance E a (/rmpany Sank. mark used by Fh%—Ial Casrsnty lawrsoes Company, • print, company not aM11.1.6 with any US ao,t,m_nl apncy. G a The Series 1993 Bonds arelimited obligatio s of Indian River County, Florida. The Series 1993 Bonds are payable by the County from and secured oe by a llen upon and pledge dile Net Revenuesolthe System and annum ondeposit In the Sinking Fund, the blond Amortization Account and the Reserve a Account established under the Master Bond Resolution, all as described herein. E u .n NEITHER THE COUNTY, THE STATE OF FLORIDA NOR ANY POLITICAL. SUBDIVISION THEREOF HAS PLEDGED ITS FULL FAITH OR o r3 CREDIT OR TAXING POWER TO THE PAYMENT OF THE SERIES 1993 BONDS. NO HOLDER OF THE SERIES 1993 BONDS SHALL EVER HAVE 'G THE RIGHT TO COMPEL THE EXERCISE OF ANY AD VALOREM TAXING POWER OF THE COUNTY Olt TAXATION IN ANY FORM ON ANY REAL o, o 'o PROPERTY THEREIN TO PAY THE SERIFS 1993 BONDS OR THE INTEREST DUE THEREON NOR BE ENTITLED TO PAYMENT OF THE SERIES w 1993 BONDS FROM ANY FUNDS OF THE COUNTY EXCEPT AS DESCRI TIED )i F.REIN. aro c o SERIES 1993A BONDS G s MATURITIES, AMOUNTS, INTEREST RATES AND PRICES OR YIELDS - ti { Sorlal Bonds li Principal Interest Principal Interoat n Maturity Amount Rata Yield Maturity Amount Hate Yield X . c G c 1993 { % `% 1999 E % % -�' 0 1994 2000 .c i, •a 1996 2001 'a = .`-' 1996 2002 c C 1997 2003 1998 2004 e r { %Term Honda, due 1, _- Price _%to Yield u e E E _%Term Bond., due 1,_- Price to Yield o u H (plus accrued intent from 1, 1993) E vt c o .N 0 SERIES 1993B BONDS ' `S-- MATURITIES, AMOUNTS, INTEREST RATES AND PRICES OR YIELDS - 0 fi a - .;'. { Suri.l Bonds w •� Principal Interest Principal Interoat u V E to Maturity Amount Rate Yield Maturity Amount Rate Yield E v r°1, 1893 8 % % 1997 E % % $ •.- 1994 -`N o 1998 96 19 1999 w 1996 2000 (Plus accrued interest from 1, 1993) ei This cover contains certain Information for quick reference only. It is not a mummery of this issue. Investors must rend the entire Official Statement mai to obtain information essential to the asking ofan informed investment derision. ski c u The Sari" 1993 hands are cleared when, as and if issued and received by the Underwriter, subject W the approval of legality by Rhoads & Sisson, a $ Boca Raton, Florida, Bond Counsel to the County. Certain legal matters will be passed upon for the County by Charle. 1'. Vilunse, Esquire, County dm Attorney and for the Underwriter by their Co-Counael, Bryant, Miller and Olive, P.A., Tallahassee, Florida and Josias & Goren, P.A., Fort Lauderdale, t2 M Florida with respect to the Series 1993 Bonds. It is expected that the Seri" 1993 Bonds will bo available for delivery in Now York, New York, in definitive m °c farm on or about Dated April_, 1993 William R. Hough & Ca I4 •Preliminary, subject to change. INDIAN RIVER COUNTY, FLORIDA Board of County Commissiooers Richard N. Bird, Chairman John W. Tipp'us, Vice Chairman Fran B. Adams Carolyn K. Eggert Kenneth R. Macht Cleric of the Circult Court and Ex-OMclo Cleric to the Board of County Commissioners Jeffrey K. Barton County Administrator James E, Chandler County Attorney Charles P. Vitunac Director of Utilities Terrance G. Pinto Director of OMce of Management and Budget Joseph A. Baird Bond Counsel Rhoads & Sinon Boca Raton, Florida Financial Advisor Fishicind & Associates, Inc. Orlando, Florida Certifkd Public Accountant Coopers & Lybrand Orlando, Florida ve d RR�g1oa°a �ck 1• pePt. r. l£or 6Z tx� INDIAN RIVER COUNTY, FLORIDA Board of County Commissiooers Richard N. Bird, Chairman John W. Tipp'us, Vice Chairman Fran B. Adams Carolyn K. Eggert Kenneth R. Macht Cleric of the Circult Court and Ex-OMclo Cleric to the Board of County Commissioners Jeffrey K. Barton County Administrator James E, Chandler County Attorney Charles P. Vitunac Director of Utilities Terrance G. Pinto Director of OMce of Management and Budget Joseph A. Baird Bond Counsel Rhoads & Sinon Boca Raton, Florida Financial Advisor Fishicind & Associates, Inc. Orlando, Florida Certifkd Public Accountant Coopers & Lybrand Orlando, Florida •3WLL Arra yV a3nNLLNOOSIa 38 AVW 'a33N3WWOO di 'NOI.LVZI'118V•LS HOnS '13)INVW N340 9HI NI 'lIVA31id HSLM'd3H.LO IHDIW HDIHM 3SOH1. 3A08V 913A31 IV SQNOB £b61 S31N3S HH.L ei0 Sapid J-gMHVW RHI NIVLNIVW NO 9ZI11OVIS AVW IVH.L SNOI.f.3VSNVILLL7a.i33110IO'lI"3A0 AVW V LIHMIMUNn 3H.L'SQNO8 £661 MINgS 3HI dO ONINaAA0 HH.L H.IJM NOLLO3NN03 NI 'oaA® s, a01lem10jur gars Rat" jo se aiep ls291eo oq; so jooiaq olsp ag; Dams Atmdmog oauemsul dluaren0 lewaemj io'malsdS ogl'AlunoJ aql jo smjpt ogl m ofmw ou uaaq saq auagl legl uo!leagdun hue aleam'saauelsmnum Aim japun'pegs iapunmq apsm ales hue jou luomolelS ImJjO srq; jo VaARap aql iagl!- pue carpo inogi!m 28ueg3 of pafgns on maiaq pomsluoa suormdo jo suorssajdxa aql pue ao!lemjojm aqy ClunoO agl'soamos jaqp moil uorleuuojm of se'io ioluAvopuf aql iSq uo!leluasaido� s se panilsnoa aq of ao!leuuojm gans s! jou ssau2pidmoa jo daemaae o; ss paolueien8 pu it lnq 'algegai aq of panorloq an ga!gm soamos joglo pue ,(uedmoO oauemsul kluomf) p rauemd 'AlunoO aq; moij pau!sygo aaoq ssq arajaq quoj las uo!lemuoju► aqy ales w uo!lelo!los'»jjo gars a�lsm o; uowad gane col In3A+� s! p ga!gA+ m uorpgn.mf bus m uowod Sue dq spuoe 0661 sauaS oql jo ales ou aq pegs oiag; pus dnq of sojjo ue jo Vol to aql Jo pas o; »jjo as olnl!lsam jou scop laomolslS I TMJJO 9TU la!o8aioj ag16q pazuoglne uaoq 8mneq se aodn papas aq pu lsnm sao!lelaosoido� io uorpmjojm joglo gms'apew to uaAd P. `P� yaaw IM pru0 imp m pomeluaa osogl uegl iaglo 'suo!leloasatdai bus o>[em o!Jo uorlsauojm Aug aA!8 0; �aluAUapun oql jo SlunoO aql Aq pazpoglne uaaq seq uos»d aagp Rue m milelumidai sales 'i2joiq Glsap oN TABLE OF CONTENTS INTRODUCTION ................................................................. 1 PURPOSE OF THE SERIES 1993 BONDS .............................................. 1 REFUNDING PLAN............................................................... 2 DESCRIPTION OF THE SERIES 1993 BONDS .......................................... 3 General................................................................... 3 MandatoryRedemption....................................................... 3 OptionalRedemption......................................................... 4 Extraordinary Mandatory Redemption ............................................. 4 Notice of Redemption......................................................... 5 Registration, Transfer, and Exchange .............................................. 5 SECURITY AND SOURCES OF PAYMENT ............................................ 5 Pledgeof Net Revenues....................................................... 5 Pledge of 1989 Special Assessment Revenues ........................................ 7 Pledge of 1990 Special Assessment Revenues ........................................ 8 Pledge of Other Assessment Revenues ............................................ 10 RateCovenant............................................................. 10 ReserveAccount......................................................... 10 Flow of Funds for the Boods................................................... 11 Additional Parity Bonds ...................................................... 12 JuniorLien Bonds...........................................................13 ESTIMATED SOURCES AND USES OF FUNDS ....................................... 14 MUNICIPAL BOND INSURANCE ................................................... 14 Bond Insurance............................................................ 14 DEBT SERVICE SCHEDULE ...................................... I ............... 16 THESYSTEM................................................................... 16 General................................................................ 16 SystemStaff................................................................17 Waterand Sewer Customers ................................................... 18 RateStructure..............................................................18 Selected F"mancial Data ....................................................... 20 DESCRIPTION OF THE CAPITAL PROJECTS ......................................... 21 WaterProjects............................................................. 21 SewerProjects............................................................. 21 FUTURE FINANCING ARRANGEMENTS ............................................ 22 LITIGATION................................................................... 22 TAX EXEMPTION............................................................... 23 Opinionof Bond Counsel ..................................................... 23 FloridaTax Matters......................................................... 24 Other Federal Income Tax Matters .............................................. 24 VERIFICATION OF MATHEMATICAL COMPUTATIONS ............................... 24 RATINGS...................................................................... 25 UNDERWRITING............................................................... 25 APPROVAL OF LEGALITY........................................................ 25 ACCURACY AND COMPLETENESS OF THE OFFICIAL STATEMENT ..................... 25 ADDITIONAL INFORMATION..................................................... 26 AUTHORIZATION OF OFFICIAL STATEMENT ....................................... 26 APPENDIX A - GENERAL INFORMATION CONCERNING INDIAN RIVER COUNTY, FLORIDA APPENDIX B - FINANCIAL STATEMENTS OF THE COUNTY FOR FISCAL YEAR ENDED SEPTEMBER 30, 1992 APPENDIX C - MASTER BOND RESOLUTION APPENDIX D - SPECIMEN MUNICIPAL BOND INSURANCE POLICY $46,75S,0000 $3,410,0000 INDIAN RIVER COUNTY, FLORIDA INDIAN RIVER COUNTY, FLORIDA Water and Seger Revenue Bonds Water and Sewer Revenue Bonds Seeks 1993A Series 1993B INTRODUCTION This Official Statement, which includes the cover page and the appendices hereto, furnishes certain information relating to the sale by Indian River County, Florida (the "County") of $46,755,000• aggregate principal amount of its Water and Sewer Revenue Bonds, Series 1993A (the "Series 1993A Bonds") and of $3,410,0001 aggregate principal amount of its Water and Sewer Revenue Bonds, Series 1993B (the "Series 1993B Bonds"), (collectively, the "Series 1993 Bonds'). The Series 1993 Bonds are being issued pursuant to the authority of the Constitution and laws of the State of Florida, including Chapter 115, Florida Statutes, and other applicable provisions of law (the "Act") and Indian River County Resolution No. 93_, as the same may be amended and supplemented (the "Master Bond Resolution'). The Series 1993 Bonds together with any additional parity bonds hereafter issued are herein referred to as the "Bonds." The Series 1993 Bonds are limited obligations of Indian River County, Florida, payable by the County from and secured by alien upon and pledge of the Net Revenues of the System, including amounts on deposit in the Sinking Fund, the Bond Amortization Account and the Reserve Account established under the Master Bond Resolution, all as described herein. Neitber the County, the State of Florida nor any political subdivision thereof has pledged Its faith or credit or taxing power to the payment of the Serfs 1993 Bonds. No holder of the Series 1993 Bonds shall ever have the right to compel the exercise of any ad valorem taxing power of the County or taxation In any form of any real property therein to pay the Series 1993 Bonds or the interest due thervon nor be entitled to payment of the Series 1993 Bonds from any funds of the County except as described herein. The references, excerpts, and summaries of all documents referred to herein do not purport to be complete statements of the provisions of such documents, and are made subject to all of the detailed provisions of such documents, to which reference is directed for full and complete statements of all matters relating to the Master Bond Resolution, the Series 1993 Bonds, the security for the payment of the Series 1993 Bonds and rights and obligations of the holders of the Series 1993 Bonds. Copies of these documents are available from Jeffrey K. Barton, Clerk of the Circuit Court, Indian River County, 1840 25th Street, Vero Beach, 32960. Capitalized terms used but not defined herein have the same meaning as in The Master Bond Resolution unless the context would clearly indicate otherwise. A copy of the Master Bond Resolution is attached hereto as Appendix C. PURPOSE OF THE SERIES 1993 BONDS The Series 1993 Bonds are being issued by the County to provide funds, together with certain other legally available funds, to (i) retire all of the County/s outstanding bonds relating to the Water and Sewer System (the 'System") which consist of the $9,650,000 Water & Sewer Revenue Bonds, Series 1986 and Series 1986A currently outstanding in the aggregate principal amount of $9,562,400, (the "Series 1986 Farmers Home Loans") the $6,510,000 Water & Sewer Revenue Refunding Bonds, Series 1989 (the "Series 1989 Bonds") currently outstanding in the aggregate principal amount of $6,300,000 and the $9,205,000 Water & Sewer Revenue Bonds, *Preliminary, subject to change. Series 1991 (the 'Series 1991 Bonds") currently outstanding in the aggregate principal amount of S9,205,000, (ii) retire debt currently secured by special assessments collected on specific benefitted property within the County consisting of $6,075,000 Special Assessment Revenue Bonds, Series 1989 (the "Series 1989 Special Assessment Bonds") currently outstanding in the aggregate principal amount of 54,855,000 and the $720,000 Special Assessment Revenue Bonds, Series 1990 (the "Series 1990 Special Assessment Bonds') currently outstanding in the aggregate principal amount of 5580,000, (iii) provide funds to make certain capital improvements and additions to the County's System (as described below under "DESCRIPTION OF THE CAPITAL PROJECTS" herein); (iv) make a deposit to the Reserve Account established under the Master Bond Resolution, (v) fund the Sinking Fund in an amount to pay a portion of the interest first coming due on the Series 1993 Bonds, and (vi) pay certain costs incurred in connection with the issuance of the Series 1993 Bonds, all as more particularly described herein. REFUNDING PLAN The County will refund all of the outstanding bonds of the System which consist of the Series 1986 Farmers Home Loans, the Series 1989 Bonds and the Series 1991 Bonds to (i) defease the first lien on the Net Revenues currently granted to the Farmers Home Administration, United Slates Department of Agriculture ('FHA') for the Series 1986 Farmers Home Loans pursuant to Resolution No. 82.61 of the County, and (ii) defease The subordinate lien on the Net Revenues granted to the holders of the Series 1989 Bonds and Series 1991 Bonds. The County will also advance refund the Series 1989 Special Assessment Bonds and the Series 1990 Special Assessment Bonds, thereby defeasing the liens on certain special assessments created under Resolution No. 89-54 and Resolution No. 90-40, respectively. To effect the current refunding of the Series 1986 Farmers Home Loans, the County will transfer to the holder thereof an amount sufficient to pay the outstanding principal, redemption premium (if any) and accrued interest to the retirement dale. To effect the advance refunding of the Series 1989 Bonds, the Series 1991 Bonds, the Series 1989 Special Asseument Bonds, and the Series 1990 Special Assessment Bonds (collectively, the 'Refunded Bonds"), the County will enter into an Escrow Deposit Agreement (the 'Escrow Agreement") on or prior to delivery of the Series 1993 Bonds, with NationsBank of Florida, NA., Fort Lauderdale, Florida, as escrow agent ((he 'Escrow Agent'). Pursuant to the terms of the Escrow Agreement, the County will deposit a portion of the proceeds of the Series 1993 Bonds with the Escrow Agent. Such moneys will be applied on the date of delivery of the Series 1993 Bonds to the purchase of direct obligations of or obligations the payment of which are guaranteed by the Unitsd States of America (the "Escrow Securities"). The Escrow Securities will mature at such times and in such amounts, together with cash held by the Escrow Agent, so that the maturing principal, together with the interest income thereon, will he sufficient to pay when due the principal, interest and redemption premium, if any, on the Refunded bonds. In the opinion of Bond Counsel, rendered in reliance upon the opinion of described under' VERIFICATION OF MATHEMATICAL COMPUTATIONS" herein, upon such deposit with the Escrow Agent and purchase of the Escrow Securities the Refunded Bonds will no longer be outstanding for purposes of the Master Bond Resolution and the pledge of and lien on the Net Revenues created by or pursuant to the Master Bond Resolution with respect to such Refunded Bonds will cease, terminate and be discharged. The cash and Escrow Securities held by the Escrow Agent, all interest or income thereon, and all proceeds from the disposition thereof will be used only to pay the principal and redemption premium, if any, of and interest on the Refunded Bonds and will not be available for payment of the Series 1993 Bonds, or any other bonds hereafter issued. The Series 1993 Bonds will be dated March 1, 1993, and will bear interest from such date at the rates per annum as set forth on the cover page hereof, payable on September 1, 1993 and semiannually thereafter on each March 1 and September 1 and will mature on September 1 in the years and principal amounts as set forth on the cover page bercof. The Series 1993 Bonds will be issued in fully registered form in denominations of $5,000 and any integral multiple thereof. Interest on the Series 1993 Bonds is payable by check or draft or, at the option of the registered owners of $1,000,000 or more in principal amount of the Series 1993 Bonds, by domestic wire transfer, of NationsBank of Florida, N.A., as Paying Agent ("Paying Agent"), made out and mailed to, or in the case of a wire transfer of funds pursuant to the written instructions of, the registered owner ('Registercd Owner"), as shown on the registration books of the County, maintained by , as Bond Registrar ("Bond Registrar`), on the fifteenth day of the month next preceding the applicable interest payment date and as otherwise described herein. The principal of the Series 1993 Bonds, when due, and any premium thereon will be payable upon presentation and surrender thereof at the principal corporate trust office of the Paying Agent, The Series 1993 Bonds may be transferred or exchanged for Series 1993 Bonds of other authorized denominations at the principal corporate trust office of the Bond Registrar. Mandatory RedcmpUon The Series 1993A Bonds due are subject to mandatory redemption by lot prior to maturity in such manner as shall be determined by the Bond Registrar, in the years and amounts set forth below at a price equal to 100%v of principal amount thereof plus accrued interest to the redemption date. M Principal Amount The Series 1993A Bonds due are subject to mandatory redemption by lot prior to maturity in such manner as shall be determined by the Bond Registrar, in the years and amounts set forth below at a price equal to 100% of principal amount thereof plus accrued interest to the redemption date. Year *Final Maturity Principal Amount Except as described below under "EAmordluary Mandatory Redemption; the Series 19938 Bonds shall not be subject to mandatory redemption prior to maturity. The County may apply moneys in the Bond Amortization Account to the purchase of Series 1993A Bonds subject to mandatory redemption (the "Series 1993A Term Bonds') at prices not greater than par plus accrued interest and apply the principal amount of any Series 1993A Term Bonds so purchased as a credit against and in fulfillment of amortization installments required on the Series 1993A Term Bonds of the same maturity. If the County shall purchase or call for redemption in any year Series 1993A Term Bonds in excess of the amortization installment requirement for such year, such excess of Series 1993A Term Bonds so purchased or redeemed shall be credited against subsequent mandatory redemption of the Series 1993A Term Bonds at such times and amounts as the County may direct. To the extent the County's obligation to make installments in a particular year is fulfilled through such purchases, the likelihood of redemption through such installments of any Owners Series 1993A Bonds of the maturity so purchased will be reduced for such year. Optloaal Redempllon The Series 1993A Bonds maturing on or prior to September 1, , shall not be subject to redemption prior to their respective dates of maturity. The Series 1993A Bonds stated to mature on or after are subject to redemption at the option of The County in whole or, from time to time, in part, on_ or on any date thereafter at the respective redemption prices set forth below expressed as percentages of the principal amount to be redeemed, plus accrued interest to the date of redemption. September 1, through August 31, ° September 1, through August 31, September 1, and thereafter, �y If fewer than all of the Series 1993A Bonds are to be so redeemed, the County may select the maturity or maturities to be redeemed. If fewer than all of the Series 1993A Bonds of any particular maturity are to be redeemed, the Bond Registrar will select by lot the particular Series 1993A Bonds or portions of Series 1993A Bonds of such maturity to be redeemed. The portion of any Series 1993A Bond of a denomination of more than $5,000 to be redeemed will be in The principal amount of $5,000 or an integral multiple of that sum. The Series 1993B Bonds shall not be subject to optional redemption prior to maturity. ErMaordlnary Mandatory Redemption The Series 1993B Bonds are subject to extraordinary mandatory redemption in whole or in part, on any payment date, from moneys received on prepayments of the 1989 Special Assessments and the 1990 Special Assessments, as defined herein, at a redemption price equal to the principal amount due thereon plus accrued interest. The Series 1993B Bonds will be selected for extraordinary mandatory redemption in ascending order of maturities and, if redeemed in part, by lot within maturities. The portion of any Series 1993B Bond of a denomination of more than $5,000 to be redeemed will be in the principal amount of $5,000 or an integral multiple of that sum. it is possible that substantial prepayments could occur, which result in a significant portion of the Series 1993B Bonds being redeemed prior to maturity. See "SECURITY AND SOURCES OF PAYMENT - PLEDGE OF 1989 SPECIAL ASSESSMENT REVENUES" and "SECURITY AND SOURCES OF PAYMENT - PLEDGE OF 1990 SPECIAL ASSESSMENT REVENUES" herein. The Series 1993A Bonds shall not be subject to Extraordinary Mandatory Redemption from moneys received from prepayments of the 1989 Special Assessments and the 1990 Special Assessments. Notice of Redemption Mi Notice of the intention to redeem the Series 1993 Bonds in whole or in part will be mailed by the Paying (Y Agent, by first class mail, to the Registered Owners of the Series 1993 Bonds to be redeemed in whole or in part # not more than 45 days and not less than 30 days prior to the date fixed for redemption, at their respective addresses as shown on the registration books, in accordance with the terms of the Master Bond Resolution. (r Such notice is to specify the series, maturities and numbers of Series 1993 Bonds to be redeemed (including the ' CUSIP number); the date fixed for redemption; the redemption price or prices applicable to the Series 1993 Bonds to be redeemed; and that on the date fixed for redemption such Series 1993 Bonds will be payable at the ' principal corporate trust office of the Paying Agent and that after such date interest shall cease to accrue on such Series 1993 Bonds. If Registered Owners of all such Series 1993 Bonds to be redeemed file written waivers of notice with the Paying Agent, such Series 1993 Bonds may be redeemed on the redemption date without necessity of notice by mailing. Failure to mail any notice of redemption or any defect therein or in the mailing thereof will not affect the validity of any proceeding for redemption of other Series 1993 Bonds called for redemption. Registration, Transfer, and Exchange t All Series 1993 Bonds presented for transfer, exchange, redemption, or payment (if so required by the County or the Bond Registrar) shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in form and with guaranty of signature satisfactory to the County or the Bond Registrar, duly executed by the Registered Owner or by his duly authorized attorney. The County and the Bond Registrar may charge the Registered Owner a sum sufficient to reimburse them for any expenses incurred in making any exchange or transfer. The Bond Registrar or the County also may require payment from the Registered Owner or his transferee, as the case may be, of a sum sufficient to cover any tax, fee, or other governmental charge that may be imposed in relation thereto. Such charges and expenses shall be paid before any such new Series 1993 Bond shall be delivered. The County and the Bond Registrar may treat the Registered Owner of any Series 1993 Bond as the absolute owner thereof for all purposes, and shall not be bound by any notice to the contrary. SECURITY AND SOURCES OF PAYMENT Pledge of Net Revenues The Bonds are limited obligations of the County. The Bonds will be payable solely by the County from and secured by alien upon and pledge of the Net Revenues of the System, together with such other revenues and funds which the County may choose to pledge by resolution as described below. Neither the County, the State of Florida, nor any political subdivision thereof has pledged Its faith or credit or taxing power to the payment of the Bonds. No holder of the Bonds shall ever have the right to compel the exercise of any ad valorem taxing power of the County or taxation In any form of any real property therein to pay the Bonds or the Interest due thereon nor be entitled to payment of the Bonds from any funds of the County except as described hereto. Subject to the release of security as discussed below, "Net Revenues" for purposes of the Bonds means Revenues less Operating Expenses. "Revenues' as used herein means: (i) all receipts and revenues of the County derived from the imposition, collection, and enforcement of uniform water and sewer service rates, fees and charges for the use of and the services furnished or to be furnished by the facilities constituting the System, including the earnings and interest income derived from the investment of the moneys on deposit in various funds and accounts established in connection with the System (the "Uniform Charges") but excluding Surcharges, impact Fees, Special Assessments (other than those expressly discussed herein), Franchise Fees, and Fees in lieu of Franchise Fees, (H) certain Special Assessments (as described below under 'Pledge of Special Assessment Revenues' herein), (w) all receipts and revenues of the County received from the operation of the System for the treatment of septage and grease; (iv) all North Beach Water Surcharges (as hereinafter defined) for services furnished by the North Beach Water System (as defined hereinafter); (v) with the consent of the Bond Insurer, so tong as any Series 1993 Bonds are outstanding, such Surcharges, Impact Fees, Special Assessments (other than those expressly pledged), Franchise Fees, and Fees in lieu of Franchise Fees as the County, by resolution, may pledge specifically in connection with the Bonds; and (vi) with the consent of the Bond Insurer, so long as any Series 1993 Bonds are outstanding, such other revenues of the County as the County, by resolution, may pledge specifically in connection with the Series 1993 Bonds. The term "Operating Expenses" is defined in the Mastcr Bond Resolution as follows: "Operating Expenses' shall mean the current expenses paid or accrued for the operation, maintenance and repair of all facilities constituting a part of the System, as determined in accordance with generally accepted accounting methods, and shall include, without limiting the generality of the forgoing, insurance premiums, administrative expenses of the County related solely to the System, costs of labor, materials and supplies used for such operation and charges for the accumulation of the appropriate reserves for current expenses not annually recurrent but which arc such as may reasonably be expected to be incurred in accordance with such accepted accounting methods, but shall exclude payments into the Sinking Fund or the Reserve Account therein and any allowances for depreciation or for renewals or replacements of capital assets of the System. THE REVENUES PLEDGED IN CONNECTION WITH THE BONDS INCLUDE ONLY THE UNIFORM CHARGES OF THE SYSTEM AND DO NOT INCLUDE ANY SURCHARGES, IMPACT FEES, SPECIAL ASSESSMENTS (OTHER THAN THOSE EXPRESSLY DISCUSSED HEREIN), FRANCHISE FEES, FEES IN LIEU OF FRANCHISE FEES, OR OTHER REVENUES OF THE SYSTEM, EXCEPT CERTAIN RECEIPTS, REVENUES, AND SURCHARGES DESCRIBED IN (iii) AND (iv) ABOVE. The County may, by resolution of the Board of County Commissioners riled with the Clerk of the Board of County Commissioners, except and release from the foregoing pledge and Gen, and the phrase "Revenues" as used in connection with the Bonds shall no longer include, the receipts and revenues of the County derived from the Uniform Charges for the use of and services furnished or to be furnished by any water and/or sewer facilities constituting a physically independent system of the County or any Impact Fees, Special Assessments, Surcharges, Franchise Fees, Fees in Lieu of Franchise Fees, or other receipts and revenue (other than Uniform Charges) theretofore pledged in connection with the Bonds, if there shall be filed with the Clerk of the Board of County Commissioners the following: (1) A certificate of an independent firm of certified public accountants of suitable experience and responsibility: (i) stating that the books and records of the County relating to the collection and receipt of the Revenues and the Operating Expenses have been audited by them for the Fiscal Year immediately preceding the date of the proposed release of such receipts and revenues from the pledge hereunder or for any twelve (12) consecutive month period out of the eighteen (18) consecutive months immediately preceding such date; (ii) setting forth the Revenues, the Uniform Charges, the Operating Expenses and the Net Revenues for the audited period referred to in (i) above, with respect to which such certificate is made; and (iii) staling that the Net Revenues, adjusted to give effect to the proposed release of such receipts and revenues as if the same has occurred at the beginning of such audited period, were equal to at least 1.20 times the largest amount of principal and interest which will mature and become due in any Fiscal Year thereafter on all Bonds then outstanding. For purposes of (iii) above (A) Revenues, Uniform Charges, and Operating Expenses may be further adjusted so as to fairly represent the operation of the System, provided that the amount and a detailed reason for such adjustment is set forth in such certificate; (B) Net Revenues may also be adjusted for (1) the pro forma effect of rates implemented prior to the proposed release of such receipts and revenues and (II) new rs.. customers added to the System during the teat period; and (C) any amounts owed to the issuer of a Reserve Account Credit Instrument (as defined hereinafter) as a result of a draw thereon, as appropriate, shall be added to the principal and interest payable on Bonds to determine compliance with the foregoing test; 4` (2) A certificate of the chief financial officer of the County stating that the County has established and will maintain a separate accounting of all revenues and expenses in connection with any such independent system or with respect to such Impact Fees, Surcharges, Special Assessments, Franchise Fees, Fees in Lieu of Franchise Fees, or other receipts and revenues to be released, apart from the Pledged Funds; and (3) Written consent of the Bond Insurer, if the 1993 Bond Insurance Policy is then in effect. All or any part of the certificate required under subparagraph (1) above may be rendered by consulting engineers, consultants, or other persons with requisite knowledge and experience who are not reasonably objected to by the Bond Insurer, Pledge of 1989 Special Assessment Revenues Authorization for 1989 SW&ial Assessments: In accordance with Chapter 125, Florida Statutes, the County entered into an Intergovernmental Agreement with the City of Sebastian, Florida (the `City') dated February 3, 1987, for the imposition of special assessments in lieu of impact fees (the "1989 Special Assessments") levied upon certain property, with the consent of the property owners, Pursuant to Ordinance No. 86.88, and Resolution Nos, 87-142, 89-12 and 89-20 of the County and Ordinance No. 0.87.01, and Resolution Nos. R-87-85, R-89-07 and R-89-12 of the City and in accordance with the Intergovernmental Agreement (collectively the "1989 Special Assessment Resolutions") the County authorized the levy of special assessments against certain real property and provided the procedures therefor. Under the 1989 Special Assessment Resolutions, the special assessments were to be used for The expansion of the County sewage system, including the acquisition and construction of The physically independent system known as the "North County Wastewater System." In Fiscal Year 1989, the County issued its Series 1989 Special Assessment Bonds, which are being refunded by these Series 1993 Bonds, The Series 1989 Special Assessment Bonds were issued for the purpose of repairing and constructing a physically independent system known as the "North County Wastewater System.' In connection therewith the 1989 Special Assessments were levied against certain benefitted properties. The amount of the 1989 Special Assessments totaled $6,081,290 of which $1,870,548 were prepaid prior to the issuance of the Series 1989 Special Assessment Bonds. As of September 30, 1992 the scheduled payments, scheduled prepayments received, and delinquent payments were as follows: Scheduled Scheduled Payments Delinquent % of Scheduled payfflt oReceived payment .Ivment )tecelved $1,272,579 $1,076,019 $196,560 84.5% The delinquencies of $196,560 represent less than 16% of the scheduled principal due and the County expects to tolled the remaining amounts through collection procedures provided by law, Pursuant to agreements with the owners of the assessed real property a designated number of ERUs (equivalent residential units) were reserved for their property in lieu of paying impact fees. As part of the consent the County agreed to use its best efforts to have the wastewater plant capacity available for the reserved ERUs when service was desired by the property owners. If the County did not have such capacity within a reasonable time after such date the property owners could cancel the reserved ERUs by written notice to the County. Such cancellation does not affect the 1989 Special Assessments in any manner whatsoever. In the event of cancellation, the County has agreed to pay to the owner of the property within 6 months after the due date of the last regularly scheduled installment of the 1989 Special Assessment, regardless of any prepayment, an amount equal to the 1989 Special Assessment paid plus all interest paid thereon. Any such sums are to be paid from other legally available funds of the County and not from the Special Assessments pledged in connection with the County Series 1989 Special Assessment Bonds, or the Series 1993 Bonds. Interest On and Prepayment of the 1989 Special Assessments The 1989 Special Assessments are to be paid in 10 equal annual installments with interest thereon. The interest payable on the 1989 Special Assessments will be at a rate not exceeding two percent (2%) above the rate of interest payable on the Series 1993B Bonds. Pursuant to the terms of the resolutions levying the 1989 Special Assessments, the owner of an assessed property may prepay the balance of the 1989 Special Assessments due on such property in full at any time. In such event, such owner must also pay an appropriate interest and/or prepayment charge as determined by the County at the time of prepayment. The prepayment of a 1989 Special Assessments does not entitle the owner of an assessed property to a discount for early payment. The lien upon an assessed property will be extinguished upon the prepayment of the 1989 Special Assessments by the recording in the Official Records of the County of an affidavit executed by the Chairman of the Board of County Commissioners (the "Chairman') to the effect that 1989 Special Assessments has been paid in full. The owner of an assessed property may also prepay a portion of the 1989 Special Assessments in order to obtain a release of the 1989 Special Assessments lien from a portion of such assessed property. The amount of prepayment, including accrued 'interest and an appropriate interest and/or prepayment charge, necessary to release a portion of the assessed property from the 1989 Special Assessments lien shall be determined by the County in its sole discretion and shall be at least pro -rata based upon the fait market value of the assessed properly as established by appraisals acceptable to the County. Upon such prepayment an affidavit executed by the Chairman will be recorded in the Official Records of the County describing the portion or portions of the assessed property as to which the 1989 Special Assessments lien were extinguished. All prepayments will be deposited, as received, into the Revenue Fund. Substantial prepayments may occur in which case a significant portion of the Series 19938 Bonds may be subject to redemption prior to maturity. See "REDEMPTION PROVISIONS" herein. Pledge of 1990 Special Assessment Revenues In accordance with Chapter 125, Florida Statutes, the County enacted Resolution Nos. 88.100, 88-102, 88-103, 88-104, and 88-105 on October 11, 1988, (the 'Initial Assessment Resolutions'). The Initial Assessment Resolutions authorized the levy of special assessments and provided the procedure therefor. Under the Initial Assessment Resolutions, the special assessments are to be levied against certain properties to be connected to the System. On June 1, 1990, the County issued its Series 1990 Special Assessment Bonds, which are being refunded by the Series 1993 Bonds, The Series 1990 Special Assessment Bonds were issued for the expansion of the wastewater treatment system of the County, including without limitation to reimburse a portion of the cost of the acquisition and construction of certain sewer line extensions and the installation of a certain low pressure grinder pump system in the Rockridge sanitary sewer area of the County to service the immediate and future needs of the area. In connection therewith special assessments were levied against certain benefitted property (the "1990 Special Assessments"). The amount of the Series 1990 Special Assessments were $1,328,250 of which $362,851 were prepaid prior to the issuance of the County's Series 1990 Special Assessments Bonds. As of September 30,1992 the scheduled payments, scheduled prepayments received, and delinquent payments were as follows: Scheduled Scheduled Payments Delinquent % of Scheduled Paymcnts RMIved Payments Payment Recelyed $362,851 $350,489 $12,362 96.6% The delinquencies of $12,362 represent less than 4% of the scheduled principal due and the County expels to tolled the remaining amounts through collection procedures provided by law. The 1990 Special Assessments are to be paid in 120 equal monthly installments with interest thereon. The interest payable on the 1990 Special Assessments will be at a rate not exceeding one percent (1%) above the rate of interest payable on the Series 1993B Bonds. Pursuant to the terms of the resolutions levying the 1990 Special Assessments, the owner of an assessed property may prepay the balance of the 1990 Special Assessments due on such property in full at any time. In such event, such owner must also pay an appropriate interest and/or prepayment charge as determined by the County at the time of prepayment. The prepayment of the 1990 Special Assessments does not entitle the owner of an assessed property to a discount for early payment. The lien upon an assessed property will be extinguished upon the prepayment of the 1990 Special Assessments by the recording in the Official Records of the County of an affidavit executed by the Chairman of the Board of County Commissioners (the "Chairman") to the effect that the 1990 Special Assessments has been paid in full. The owner of an assessed property may also prepay a portion of his 1990 Special Assessments in order to obtain a release of the 1990 Special Assessment lien from a portion of such assessed property. The amount of prepayment, including accrued interest and an appropriate interest and/or prepayment charge, necessary to release a portion of the assessed property from the 1990 Special Assessments lien shall be determined by the County in its sole discretion and shall be at least pro -rata based upon the fair market value of the assessed property as established by appraisals acceptable to the County. Upon such prepayment an affidavit executed by the Chairman will be recorded in the Official Records of the County describing the portion or portions of the assessed property as to which the 1990 Special Assessments Gen was extinguished. All prepayments will be deposited, as received, into the Revenue Fund. Substantial prepayments may occur in which case a significant portion of the Series 1993B Bonds may be subject to redemption prior to maturity. See "REDEMPTION PROVISIONS" herein. UnderIA" Securily for CoUcction of the 1984 SDgciat Assessments and the 1990 Special As_seccmentc In the event the County must resort to foreclosure to enforce collection of the special assessments, collection of the delinquent assessments is dependent upon the value of the assessed property. Pk* of OUw Assessment Revenues All Special Assessments levied (if any) in connection with the Series 1993 Projects (see "DESCRIPTION OF CAPITAL PROJECTS%and all interest, prepayment charges and penalties in connection therewith received by the County shall be Revenues under the Master Bond Resolution. Rate Covenant The County covenants in the Master Bond Resolution to establish and maintain such Uniform Charges and, as applicable, such Surcharges, Impact Fees, Special Assessments, Franchise Fees, Fees in lieu of Franchise Fees, and such other receipts and revenues in connection with the System, so as to always provide either of the following: (1) Uniform Charges less Operating Expenses sufficient to pay (a) one hundred percent (10017b) of all required deposits into the Reserve Account, and (b) one hundred twenty percent (120%) of the amount of principal and interest becoming due in such Fiscal Year on the Bonds outstanding, or (2) When the Revenues include receipts and revenues in addition to Uniform Charges, Net Revenues in each Fiscal Year sufficient to pay (a) one hundred percent (100%) of all required deposits into the Reserve Account, and (b) one hundred twenty percent (12017b) of the amount of principal and interest becoming due in such Fiscal Year on the Bonds outstanding; provided, however, that Uniform Charges less Operating Expenses are sufficient to pay (a) one hundred percent (100%) of alf required deposits into the Reserve Account, and (b) one hundred percent (100%) of the amount of principal and interest becoming due in such Fiscal Year on the Bonds outstanding. Any amounts owed by the County to the issuer of a Reserve Account Credit Instrument (as defined hereinafter) as a result of a draw thereon, as appropriate, shall be added to the principal and interest payable on the Bonds to determine compliance with this rate covenant. Reserve Account The Master Bond Resolution provides for the establishment and maintenance of a Reserve Account within the Sinking Fund. Upon delivery of the Series 1993 Bonds, the County shall deposit into or credit to the Reserve Account a sum equal to the lesser of (i) the maximum annual debt service on all outstanding Bonds, or (u) one and one-quarter (125%) limes the average annual debt service on all outstanding Bonds (the "Reserve Account Requirement"); provided, however, in no event shall such deposit exceed the maximum amount which would adversely affect the exclusion of the interest on the Series 1993 Bonds from gross income of the Registered Owners thereof for purposes of federal income taxation. Moneys on deposit in the Reserve Account shall be applied in accordance with the provisions of the Master Bond Resolution solely for the purpose of the payment of the Bonds when the other moneys in the Sinking Fund are insufficient therefor, and for no other purpose. No further deposits shall be required to be made into the Reserve Account as long as there shall remain on deposit therein (including any Reserve Account Credit Instrument as described below) a sum equal to the Reserve Account Requirement. The value of the Reserve Account, including investments on deposit in the 10 Y'. t r. Reserve Account, shall be determined annually on the fust day of the Fiscal Year by an independent firm of certified public accountants, who may be the accountants for the County, in accordance with generally accepted accounting principles. Notwithstanding the foregoing, in lieu of, in whole or in part, the required deposits into the Reserve Account, the County may cause to be deposited into the Reserve Account any Reserve Account Credit Instrument meeting the requirements of the Master Bond Resolution. Moneys in the Reserve Account shall be used only for the purpose of the payment of maturing principal of or interest on Bonds when the other moneys in the Sinking Fund are insufficient therefor, and for no other purpose. However, upon the valuation of the Reserve Account in each year, if the moneys applied and allocated to the Reserve Account (except the investment income thereon) exceed the amount required, such excess may be withdrawn and released to the County. If the Reserve Account Requirement shall at any time be satisfied in whole or in part with a qualifying letter of credit and such letter of credit is about to expire or terminate, the County authorizes and directs the Paying Agent to draw upon such letter of credit prior to its expiration or termination to the extent required to fully fund the Reserve Account requirement unless a replacement Reserve Account Credit Instrument is in place or the Reserve Account is otherwise fully funded in its required amount. Flow of Funds for the Bonds Under the Master Bond Resolution, the County has covenanted that all Revenues shall upon receipt thereof be deposited in the 'Water and Sewer Revenue Fund" (the "Revenue Fund"). All Revenues on deposit in the Revenue Fund for the Bonds shall be disposed of by the County subject to the following order of priority. (1) First, the County shall transfer in each month to the Operation and Maintenance Fund the amount required to be deposited therein to pay the Operating Expenses due or to become due for such month. (2) Second, the County shall deposit in each month to a fund to be known as the "Water and Sewer Revenue Bonds Sinking Fund" (the "Sinking Fund'), one-sixth (1/61h) of such sum as will be sufficient to pay interest on the Bonds as the same shall become due on the next interest payment date, together with the amount of any deficiency in prior deposits for interest on Bonds, and one -twelfth (1/12th) of the principal of Bonds maturing on the next principal payment dale with respect to the Bonds. Such deposits shall take into account the sums, if any, deposited in the Sinking Fund out of proceeds from the sale of Bonds to pay interest thereon. in addition, there shall be deposited in the Sinking Fund amounts sufficient to pay the fees and charges of the Paying Agent. (3) Third, the County shall deposit into an account in the Sinking Fund to be known as the "Bond Amortization Account; one -twelfth (1/121h) of the principal of Bonds subject to mandatory call for redemption on the next principal payment date with respect to the Bonds. (4) Fourth, the County shall deposit into an account in the Sinking Fund to be known as the "Reserve Account," a sum sufficient to increase the amount on deposit in the Reserve Account to the Reserve Account Requirement. A sum to be specified by resolution of the County will be deposited in the Reserve Account out of the proceeds of the sale of Series 1993 Bonds. However, in no Fiscal Year shall Net Revenues in excess of twenty percent (20%) of the Reserve Account Requirement be required by Subsection P or Subsection Y of Section 17 of the Master Bond Resolution, unless principal and interest on the Bonds has been paid from the Reserve account or there is ten percent (10%) or more decline in the market value of the Reserve Account. No further deposits shall be 11 required to be made into the Reserve Account as long as there shall remain on deposit therein including any Reserve Account Credit Instrument a sum equal to the Reserve Account Requirement. The value of the Reserve Account, including investments on deposit in the Reserve Account, shall be determined annually on the fust day of the Furcal Year by an independent firm of certified public accountants, who may be the accountants for the County, in accordance with generally accepted accounting principles. Furthermore, the County may at any time and from time to time cause to be deposited in the Reserve Account such Reserve Account Credit Instrument and cause an appropriate amount to be withdrawn from the Reserve Account and released to the County. (5) Fath, moneys in the Revenue Fund shall be applied to the payment of current debt service and reserve requirements of any obligations of the County which have a lien on the Pledged Funds junior and subordinate to the lien of the Bonds. (6) Sixth, moneys remaining in the Revenue Fund after the above required payments have been made may be deposited into a special fund to be known as the "Sewer and Water Renewal and Replacement Fund," which shall be used only for the purpose of paying the costs of extensions, enlargements, or additions to or the replacement of capital assets of the System, and for emergency repairs thereto. (7) Seventh, the balance of any moneys remaining may be used by the County for any lawful purpose. No further deposits to the Sinking Fund, the Bond Amorlization Account or the Reserve Account shall be required when the aggregate sums deposited therein are and remain at least equal to the sum of all of the principal and interest then due and thereafter and becoming due in all ensuing years for the Bonds then outstanding. Additional Parity Bonds Additional Parity Bonds, payable on a parity with the Series 1993 Bonds ("Additional Parity Bonds"), may be issued from time to time to finance any portion of the costs of the construction and/or acquisition of additions, extensions and improvements to the System, or of any physically separate water or sewer system declared by resolution of the Board of County Commissioners to be part of the System, or for refunding purposes. Before issuing any Additional Parity Bonds, there shall have been obtained and filed with the County a certificate of an independent firm of certified public accountants of suitable experience and responsibility (i) stating that the books and records of the County relating to the collection and receipt of the Revenues and the Operating Expenses have been audited by them for the Fiscal Year immediately preceding the date of We of the proposed obligations or for any twelve (12) consecutive month period out of the eighteen (18) consecutive months immediately preceding the date of sale of the proposed obligations; (ii) setting forth the Revenues, the Uniform Charges, The Operating Expenses and the Net Revenues for the audited period referred to in (i) above, with respect to which such certificate is made; and (iii) stating that: (a) during such audited period, the County was in compliance with the rate covenant previously discussed; and (b) the Net Revenues, as adjusted as hereinafter provided, were equal to at least 1.20 tunes the largest amount of principal and interest which will mature and become due 12 in any Fiscal Year thereafter on all Bonds then outstanding, including the proposed Additional Parity Bonds; and when the Revenues include receipts and revenues in addition to Uniform Charges, the Uniform Charges less Operating Expenses, adjusted as hereinafter provided, were equal to at least 1.00 times the largest amount of principal and interest that will mature and become due in any Fiscal Year thereafter on all Bonds outstanding, including the proposed Additional Parity Bonds. For purposes of (iii) above: (A) Revenues, Uniform Charges, and Operating Expenses may be adjusted so as to fairly represent the operation of the System, provided that the amount and a detailed reason for each such adjustment is set forth in such certificate; (B) Net Revenues also may be adjusted for (i) the pro forma effect of rates implemented prior to issuance of the Additional Parity Bonds, (ii) new customers added to the System during the test period, (iii) already existing occupied residences or operating business establishments which will be Eonnected to the System upon completion of projects under construction or to be funded with bond proceeds, and (iv) Net Revenues attributable to customers for whom Impact Fees have been paid, and which will be connected to the System upon completion of projects under construction or to be funded with bond proceeds (provided that while the Series 1993 Bonds are outstanding and the Series 1993 Bond Insurance Policy is in effect, not more than 40% of the Net Revenues described in this subclause (iv) shall be used as an adjustment under this clause (B) without the consent of the Bond Insurer); and (C) any amounts owed by the County to the issuer of a Reserve Account Credit Instrument as a result of a draw thereon, as appropriate, shall be added to the principal and interest payable thereon on the Bonds to determine compliance with the foregoing test. All or any part of the certificate required under the second paragraph of this subsection may be rendered by consulting engineers, consultants or other persons with requisite knowledge and experience who are not reasonably objected to by the Bond Insurer. Additional Parity Bonds may not be issued at any time at which the County is in default in performing any of the covenants and obligations under the Master Bond Resolution, or all payments herein required to have been made into the accounts and funds, as provided under the Master Bond Resolution, have not been made to the full extent required. The foregoing conditions shall not apply with respect to Additional Parity Bonds the proceeds of which will be used to complete a project a substantial portion of the cost of which has been or will be paid out of the proceeds of Bonds issued under the Master Bond Resolution. +. The County covenants for the benefit of the Registered Owners of the Series 1993 Bonds and any other r Bonds issued and outstanding under the Master Bond Resolution that the County shall, at the time of issuance of any Additional Parity Bonds, make a deposit to the Reserve Account in the Sinking Fund created under the ( Master Bond Resolution so that the Reserve Account shall have a cash and investments at such time equal to the lesser of (i) the Reserve Account Requirement (including the Additional Parity Bonds and giving effect to the retirement of any Bonds being refunded with proceeds of the Additional Parity Bonds) becoming due in any h' ensuing fiscal year; or (ii) such amount as will not adversely affect the exclusion of interest on the Series 1993 Bonds from the gross income of the holders of the Series 1993 Bonds. junior Len Bonds tx` The County is authorized to issue obligations other than Bonds payable from the Pledged Funds provided such obligations are junior and subordinate in all respects to the Bonds as to lien on and source and t.: security for payment from the Pledged Funds and such obligations contain an express statement to that effect. 13 ESTIMATED SOURCES AND USES OF FUNDS Sources: Principal Amount of Series 1993A Bonds Principal Amount of Series 1993B Bonds Accrued Interest County Funds Uses: Total Sources Deposit to Escrow Account Deposit to Construction Account Deposit to Reserve Account(l) Deposit to Sinking Fund Original Issue Discount Underwriter's Discount Issuance Expenses and Municipal Bond Insurance Premium Total Uses S (1) Represents initial Reserve Requirement on all Series 1993 Bonds. MUNICIPAL BOND INSURANCE Bond Insurance Concurrently with the issuance of the Series 1993 Bonds, Financial Guaranty Insurance Company ("Financial Guaranty") will issue its Municipal Bond New Issue Insurance Policy for the Bonds (the "Policy'). The Policy unconditionally guarantees the payment of that portion of the principal of and interest on the Bonds which has become due for payment, but shall be unpaid by reason of nonpayment by the County. Financial Guaranty will make such payments to Citibank, N.A., or its successor as its agent (the "Fiscal Agent'), on the later of the date on which such principal and interest is due or on the business day next following the day on which Financial Guaranty shall have received telephonic or telegraphic notice, subsequently confirmed in writing, or written notice by registered or certified mail, from an owner of Bonds or the Paying Agent of the nonpayment of such amount by the County. The Fiscal Agent will disburse such amount due on any Bond to its owner upon receipt by the Fiscal Agent of evidence satisfactory to the Fiscal Agent of the owner's right to receive payment of the principal and interest due for payment and evidence, including any appropriate instruments of assignment, that all of such owner's rights to payment of such principal and interest shall be vested in Financial Guaranty. The term "nonpayment" in respect of a Bond includes any payment of principal or interest made to an owner of a Bond which has been recovered from such owner pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in accordance with a final, nonappealable order of a court having competent jurisdiction. The Policy is non -cancelable and the premium will be fully paid at the time of delivery of the Bonds. The Policy covers failure to pay principal of the Bonds on their respective slated maturity dates, or dates on which the same shall have been duly called for mandatory sinking fund redemption, and not on any other date on which the Bonds may have been accelerated, and covers the failure to pay an installment of interest on the stated date for its payment. Generally, in connection with its insurance of an issue of municipal securities, Financial Guaranty requires, among other things, (i) that it be granted the power to exercise any rights granted to the holders of such securities upon the occurrence of an event of default, without the consent of such holders, and that such 14 holders may not exercise such rights without Financial Guarantys consent, in each case so long as Financial Guaranty has not failed to comply with its payment obligations under its insurance policy-, and (ii) that any ' -.•i amendment or supplement to or other modification of the amendment or supplement to or other modification of the principal legal documents be subject to Financial Guaranty's consent, The specific rights, if any, granted •',` to Financial Guaranty in connection with its insurance of the Bonds are set forth in the description of the Fiy?, K.,.,. principal legal documents appearing elsewhere in this Official Statement Reference should be made as well to such description for a discussion of the circumstances, if any, under which the County is required to provide additional or substitute credit enhancement, and related matters. This Official Statement contains a section regarding the ratings assigned to the Bonds and references should be made to such section for a discussion of such ratings and the basis for their assignment to the Bonds. The Policy is not covered by the Property/Casualty Insurance Security Fund specified in Article 76 of the New York Insurance Law. Financial Guaranty is a wholly-owned subsidiary of FGIC Corporation (the "Corporation"), a Delaware holding company. The Corporation is a subsidiary of General Electric Capital Corporation ("GE Capital"). Neither the Corporation nor GE Capital is obligated to pay the debts of or the claims against Financial Guaranty. Financial Guaranty is a monoline financial guaranty insurer domiciled in the State of New York and is subject to regulation by the State of New York Insurance Department. As of December 30, 1992, the total capital and surplus of Financial Guaranty was approximately $621,000,000. Financial Guaranty prepares financial statements on the basis of both statutory accounting principles and generally accepted accounting principles. Copies of such financial statements may be obtained by writing to Financial Guaranty at 115 Broadway, New York, New York 10006, Attention: Communications Department (telephone number: (212) 312-3000) or to the New York Stale Insurance Department at 160 West Broadway, 18th Floor, New York, New York 10013, Attention: Property Companies Bureau (telephone number: (212) 602-0389). [Remainder of page intentionally left blank[ 15 DEBT SERVICE SCHEDUM The following table presents the annual debt service requirements of the County for the Series 1993 Bonds: Year Ending SERIES 1993A BONDS 1993 $ S 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2074 2025 Total SERIES 19938 BONDS Noel G>}1 Interest Total S S S THE SYSTEM Geoerd The County's water and sewer system consists of all water and sewer systems now owned and operated by the County, together with any and all improvements, extensions and additions thereto hereafter Constructed or acquired, and any physically independent water or sewer system hereafter made a part of the System by resolution of the Board of County Commissioners together with any and all improvements, extensions and 16 additions thereto thereafter constructed or acquired (the "Sys(em"). The System includes all property, real, personal and mixed, rights, powers, licenses, easements, rights of way, privileges, franchises and all other property or interests in property of whatsoever nature, including but not limited to vehicles, rolling stock, buildings, pipes, pumps, machinery, tanks, mains, conduits, meters and other equipment, used or useful in connection with ownership, operation and maintenance of such water or sewer systems by the County. The System provides water and sewer services to a portion of the County's population, with a majority of the other County residents being serviced by private wells and septic tanks and the City of Vero Beach, Florida, which operates its own water and sewer systems. The County presently operates three water plants, the south County plant ("South County Plant"), the North Beach plant ("North Beach Plant') and The Rivers Edge Plant. The water plants have a present nominal 4.: capacity of 8.5 million gallons per day ('MGD"). The County has expanded its production capacity for the South r County Plant to 6S MGD and is currently constructing an expansion of the plant by 1.5 MGD for a total of 8.0 MGD capacity. On November 1, 1990, the County consummated the purchase of the business and assets of the >1' North Beach Water Company consisting of the North Beach Plant (with a treatment capacity of 500,000 gallons i.< per day) and a distribution system in the northern portion of the County ("North Beach Water System"). The i{ North Beach Plant has been expanded by 1 MGD for a total capacity of 1.5 MGD. The County anticipates construction of a 3 MGD North County Reverse Osmosis Water Treatment Plant within the next two years. The ti County currently operates over 182 miles of size 2" to 30" water distribution mains. The County is currently constructing a very aggressive assessment expansion program of the water system to serve approximately 7,000 one-half acre or less lots located in the County service area. Presently, wastewater treatment and disposal service in the unincorporated portions of the County is provided by approximately 16 wastewater plants. Nine of these plants with an aggregate 3.985 MGD of treatment capacity are owned and operated by the County. Of the facilities owned and operated by the County, the three largest account for nominal capacity of 3 MGD in the aggregate. The remaining six treatment plants, in the aggregate, account for additional capacity of approximately .985 MGD. The County also has the right to have treated up to 1.39 MGD at the municipally owned City of Vero Beach wastewater treatment plant. The County is expanding each of the three largest plants from a treatment capacity of 1 MGD to a capacity of 2 MGD, with the completion of such expansion expected in 2 years. The County currently has a 2 MGD South County Wastewater Treatment Plant under design. The plant is scheduled for construction within 2 years. The County currently owns and operates over 173 miles of size 3" to 24" wastewater collection system mains. The Regional Sludge Facility funded with the Series 1991 Bonds is scheduled to open May 1, 1993. The Facility was needed to meet the County's immediate and future needs for the treatment and disposal of sludge (the solid or semi-solid residual by-product of the wastewater Treatment plant process), septage (the liquids and solids removed from domestic septic tanks and portable toilet facilities), and grease (The material taken from commercial grease traps typically found at food processing facilities and restaurants). A grant (the "Grant") from the Florida Department of Environmental Regulation ("FDER") and the Environmental Protection Agency ("EPA") was used to pay a portion of the costs relating to the Regional Sludge Facility. The final amount of the Grant is subject to review and approval by FDER and EPA. The County has received approximately $1,767,000 in grant funds through March 1, 1993, and expects that the total amount of the Grant will be approximately $2,100,000. System Staff The System presently employs 102 persons. The System is managed by Terrance G. Pinto, Director of Utilities. It is the opinion of management that the System enjoys excellent labor relations. Water and Sewer Customers The number of County water and sewer customers, expressed as the number of equivalent residential units ("ERUs"), for the years 1986-92 is set forth below. 1986 9,827 8,824 1987 11,193 9,339 1988 12,005 9,552 1989 15,187 13,618 1990 17,615 16,874 1991 21,886 22,574 1992 23,136 24,172 INDIAN RIVER COUNTY DEPARTMENT OF UTILITY SERVICES HIGH VOLUME CUSTOMERS CUSTOMERS WATER•ES WER• General Development Utility 100,079 33,164 Village Green 33,164 9,719 Indian River County Jail 9,719 7,940 Holiday Inn 7,940 7,661 Indian River Village Care Center 7,146 7,146 Inn Vero 6,577 6,577 • Volume in Million Gallons Rate Structure Historically, the County's rates for water and sewer service have been sufficient to meet the applicable rate covenants, with respect to the County's obligations under the Master Bond Resolution. The rates for the System are projected to be sufficient through 1993 to comply with the rate covenant for the Series 1993 Bonds. The System has rates for both residential and commercial classes of customers. In September 1991, the County passed a rate resolution (Resolution No. 91-145), adopted pursuant to the authority of Ordinance 91-9, which put into effect new incremental water and wastewater rates through the Fiscal Year 1993. The basis for Resolution 91-145 was a "Water and Waste Water Pee & Rate Study" (the 'Study"), dated September 1991, prepared by the County's Consulting Engineer. The Study investigated the annual cost of operating and maintaining the water and wastewater systems and recommended rates, charges and policies which are both sufficient to recover these costs and equitable to the allocation of these costs to the different user classes. The analysis also included anticipated capital improvements for the period covered by the Study. All rates and charges developed in the Study were based upon what is generally referred to as a cost of service approach to utility rate design. Under this approach, customers of each class are assessed rates and charges for units of service which are equal to the cost of providing water and wastewater service to the average customer of each class. Thus, all customers pay their fair share of the System cost and no customer class subsidizes any other customer class. The Study was conducted on the assumption that the System will continue to operate as a separate enterprise, neither subsidizing any other branch of County government nor receiving 18 any subsidy. The cost of service approach is endorsed by the American Waterworks Association, the American Public Works Association, the American Society of Civil Engineers, and the Water Pollution Control Federation. Pursuant to Resolution Nos. 91-31 and 91-145, the County has established water and sewer charges for Fiscal Years 1991, 1992 and 1993. The uniform water and sewer rates for Fiscal Years 1991, 1992, and 1993 are set forth below - in addition to the charges shown above, users of the North Beach Water System arc subject to a $13 per ERU per month surcharge ("North Beach Water Surcharge"). This surcharge generated approximately $291,867 in revenues in the County's Fiscal Year ended September 30, 1990. When the Regional Sludge Facility ((he "1991 Project") is placed into service on May 1, 1993, additional revenues will be received from generators of septage wastes and owners of grease traps. For Fiscal Years 1992 and 1993 the County will charge tipping fees of $105 per truck of septage waste delivered to the System (assuming septage haulers carry full truck loads). The County estimates that tipping fees will generate a total of $144,999 during the first full year of the operation of the 1991 Project. The following table presents a comparison of water and wastewater bills of hypothetical single-family residential customers using 10,000 gallons of water per month with 5/8 -inch meter for various governmental entities, including the County. The following table compares the County's current charges for the System with typical water and sewer bills of other county utility systems. 19 Fiscal Year Ended September 30 4. WATE � Im Billing Charge $2.00 $2.00 $2.00 Base Facilities Charge (per ERU) 6.20 8.70 9.20 Where Lines Are Available < Volume Charge per 1,000 gallons (per ERU) ' 0-3,000 gallons 1.75 1.75 1.75 r 3,001-7,000 gallons 2.15 2.15 2.15 7,001 gallons and over 2.55 2.55 2.55 Excess Volume Surcharge - Greater than 13,000 gallons per month (per ERU) 1.95 2.10 2.30 Base Facility Charge Where Capacity Is '- Reserved But Lines Are Not Yet Available - Per ERU 3.10 4.35 4.60 SEWER Billing Charge 2.00 2.00 2.00 Base Facility Charge Where Lines Are Available - Per ERU 7.60 12.25 13.50 Volume Charge - 85% of water use 3.35 3.35 3.35 Excess Volume Surcharge - Greater than 11,000 gallons per month (per ERU) 3.70 4.05 4.45 Base Facility Charge Where Capacity Is Reserved But Lines Are Not Yet Available - Per ERU 3.80 6.13 6.75 in addition to the charges shown above, users of the North Beach Water System arc subject to a $13 per ERU per month surcharge ("North Beach Water Surcharge"). This surcharge generated approximately $291,867 in revenues in the County's Fiscal Year ended September 30, 1990. When the Regional Sludge Facility ((he "1991 Project") is placed into service on May 1, 1993, additional revenues will be received from generators of septage wastes and owners of grease traps. For Fiscal Years 1992 and 1993 the County will charge tipping fees of $105 per truck of septage waste delivered to the System (assuming septage haulers carry full truck loads). The County estimates that tipping fees will generate a total of $144,999 during the first full year of the operation of the 1991 Project. The following table presents a comparison of water and wastewater bills of hypothetical single-family residential customers using 10,000 gallons of water per month with 5/8 -inch meter for various governmental entities, including the County. The following table compares the County's current charges for the System with typical water and sewer bills of other county utility systems. 19 Selected Financial Data The following table sets forth selected financial data for the System for the Fiscal Years ended September 30,1989 through September 30,1993. The data have been derived from the Water and Sewer System Fund and are summaries of the audited financial statements for Fiscal Years ended September 30, 1989, September 30, 1990, September 30, 1991 and September 30, 1992 examined by Coopers & Lybrand, Orlando, Florida. The financial data for Fiscal Year 1993 were obtained from the Indian River County 1992 - 1993 Annual Bud¢et• Operating Revenue Interest Earnings 1989 Special Assessments 1990 Special Assessments Gross Revenues Direct Expense(') Net Revenues Available for Debt Service Annual Debt Service Debt Service Coverage SUMMARY OF REVENUES OF THE SYSTEM COMPARISON OF MONTHLY Fiscal Year Ended September 30, SINGLE FAMILY WATER AND WASTEWATER BILLS tI (thousands of dollars) Water Wastewater Shame Char& Total Char& Collier County $31.70 $29.90 $61.60 Brevard County 18.15 5150 69.65 Hillsborough County 2150 61.00 82.50 Indian River County 31.00 43.98 74.98 Lee County 31.67 39.52 71.19 Pasco County 23.39 30.80 54.19 Sarasota County 32.80 34.19 66.99 St. Johns County 41.92 41.13 82.09 St. Lucie County 28.37 40.20 68.57 Selected Financial Data The following table sets forth selected financial data for the System for the Fiscal Years ended September 30,1989 through September 30,1993. The data have been derived from the Water and Sewer System Fund and are summaries of the audited financial statements for Fiscal Years ended September 30, 1989, September 30, 1990, September 30, 1991 and September 30, 1992 examined by Coopers & Lybrand, Orlando, Florida. The financial data for Fiscal Year 1993 were obtained from the Indian River County 1992 - 1993 Annual Bud¢et• Operating Revenue Interest Earnings 1989 Special Assessments 1990 Special Assessments Gross Revenues Direct Expense(') Net Revenues Available for Debt Service Annual Debt Service Debt Service Coverage SUMMARY OF REVENUES OF THE SYSTEM Fiscal Year Ended September 30, tI (thousands of dollars) Audited Figures Bu ') im 1220 1243 1221 54,314 $5,271 $6,727 S10,712(2) $11,102 675 664 994 829 753 'r 1 (4) 54.989 s7•n2 11 513.059 _3,144 4. 5.4 6.1 1.84 $1.4T2 $2.293 $5.3 S6 768 862 1,303 1,366 3,680(5] 2.40x 1.71x 1.75x I&X 12b (1) Excludes Depreciation, Amortization and nonrecurring events. (2) The increase in Revenues is auribulable to a large Increase in the number of new customem and a significant rate increase which was imptemented on October 1, 1991. 11he number of water customers increased 5.7% from fiscal year 1991 to Fiscal Year 1992, and the number of sewer customers increased 7.07% from fiscal year 1991 to Fiscal Year 1992. (3) Infomtation obtained from Indian River County 1992 - 1993 Annual Budget. The increase in Revenue reflects an Inereue in Mater and sewer rates which took effect on October 1, 1992, and the collection of seplage feu and grease Imp fees relating to the Regional Sludge Facility. (4) With the issuance of the Series 1993 Bonds, definitions of Revenua in the Mutcr Bond Resolution has been changed to include the 1989 Special Assessments and the 1990 Special Assessments. (5) Estimated maximum annual debt service for the Series 1993 Bonds. The County attributes the Increase in Revenues for the Fiscal Years ended September 30,1989 through September 30, 1992 primarily to growth of the System and increases in Uniform Charges. 20 t The County also receives Impact Fees in connection with the System. Impact Fees are not pledged as a security for the Bonds. While the County may pledge the Impact Fees in the future, the County presently has no intention to pledge Impact Fees as security for the Bonds. Impact Fees for the last five Fiscal Years ended September 30 are as follows: Fiscal Impact Fees Year _(000's)_ 1986 $1,092 1987 1,739 1988 2,852 1989 932 1990 3,329 1991 5,287 1992 1,775 DESCRIPTION OF THE CAPITAL PROJECTS f•^ A portion of the proceeds of the Series 1993 Bonds, approximately $17,700,000, is being used to finance i in the costs of acquisition, construction and equipping of certain additions, extensions, and improvements to the s?n System required to increase System capacity and meet projected growth. These improvements include the following water and wastewater projects: Water Projects 1. The expansion of the South County Reverse Osmosis Water Transmission Plant ("ROWTP") System to provide an additional 1.5 million gallons a day (MGD) at an approximate cost of $1,125,000. 2. The construction of a 3 million gallon water storage tank and HSP (High Service Pumps) station at North Region ROWTP at an approximate cost of $3,200,000. 3. Addition of Roseland elevated storage tank at an approximate cost of $975,000. 4. Construction of various projects for phase 11 to extend water lines to existing subdivisions of the County at an approximately cost of $1,200,000. The County has previously adopted a capital improvement program consisting of six (6) phases that involve extension of water lines to increase the numbers of customers on the System. The County has previously constructed phase I and is in the process of constructing phases It and Ill. 5. Construction of various projects for phase Ill to extend water lines to existing subdivisions of the County at a estimated cost of $2,000,000. Seger Projects 1. The expansion of the West Region Wastewater Transmission Plant ("WWTP") System to provide an additional 2.0 MGD at an approximate cost of $4,300,000. 2. The construction of an effluent connection force main between West and Central Regions to provide additional wastewater flow at an approximate cost of $4,900,000. 21 FUTURE FINANCING ARRANGEMENTS Water System: The County is in the process of completing the design and permitting of the North County Reverse Osmosis Facility. In Fiscal Year 1993, the County will add two 5,000 gallon per minute (GPM) high service pumps at the South Regional Water Transmission Plant. In the County's Capital Improvement Program, the County has identified Phase I through VI projects. The Phases involve the installation of water fines to serve various undersized lots and subdivisions in the County. As described under "Description of the Capital Projects herein, a portion of the construction costs of Phase fI and Phase III will be funded with proceeds of the Series 1993 Bonds. At the completion of these Phases, the County will begin construction of Phases IV through Phase V1. In Fiscal Year 1993, the County is also in the process of installing a water main along County Road 510 to Pelican Point and will expand the water system through assessment districts. As Phase 11 and 111 are completed, the parcels of property that are specifically benefitted will be assessed for the pro rata share of the costs of the project and the assessments will become a part of the revenues pledged to the Series 1993 Bonds. Sewer System: The County is completing the construction and startup of the operations of the Sludge Septage Facility that was funded through the issuance of the Series 1991 Bonds. The project is expected to be completed and in operation on May 1, 1993. The County is also in the process of completing the design for the construction of the South County Wastewater Plant and Collection System and startup operations of the Blue Cypress Wastewater Facility. The County has also internally funded approximately 54,300,000 to complete design and construction of the Central Region Effluent Disposal Reuse System and expand its capacity to 2 million gallons a day (MGD). The County will continue to promote connections to its Gifford Wastewater System and its North County Wastewater System. In Fiscal Year 1993, through internally generated funds, the County expects to complete a project, which expands the transmission lines to the North Region Collection System, at an approximate cost of $920,000, complete an effluent connector force main between the North and Central Region Systems at a cost of approximately $1,200,000, construct a 1,000,000 gallon effluent storage tank at the North Region at an approximate cost of $450,000, construct a REWARD infiltration basin at an approximate cost of $840,000, and conned the privately owned Hawk's Nest Golf Course to the sewer system at an approximate cost of SL50,000. As described herein, under "DESCRIPTION OF THE CAPITAL PROJECTS" a portion of these Series 1993 Bond proceeds will be used to expand the capacity of the West Regional Wastewater Transmission Plant to 2,000,000 gallons a day and complete the effluent connector force main between the West and Central Regions. Combined System: Overall, the County's goats and objectives are to design/construct new water and wastewater facilities as required in the Comprehensive Plan in the Utilities Master Plan to provide potable water and wastewater service to the greatest number of new customers as possible. The goals and objectives include expanding the existing water and wastewater facilities to serve additional developments, evaluate existing facilities and renovate as needed to improve service to existing customers, continue to acquire existing water and wastewater franchise utilities and create assessment districts to provide water and wastewater services to undersized lots throughout the County. Based on the County Ordinance 91-09, it is the County's opinion that the water and wastewater rates that have been adopted are sufficient to provide the funds to complete the projects as specifically described above without increasing rates in the next several years. In the future, as the County pursues the goals and objectives that are described in this paragraph, it may be required to implement water and wastewater rate increases as the County funds additional projects. LITIGATION In the opinion of the County Attorney, no legal proceedings are pending or threatened that materially affect the County's ability to perform its obligations to the holders of the Series 1993 Bonds or that materially affect the financial condition of the System. 22 In the opinion of the County Attorney, there is no litigation or controversy of any nature now pending or, to the County's knowledge, threatened to restrain or enjoin the issuance, sale, execution or delivery of the Series 1993 Bonds or in any way contesting the validity of the Series 1993 Bonds or any proceedings of the County taken with respect to the authorization, sale or issuance of the Series 1993 Bonds or the pledge or application of any moneys provided for the payment of the Series 1993 Bonds. TAX EXEMPTION yam` Opinion of Bond Counsel On the date of delivery of the Series 1993 Bonds, Rhoads & Sinon, Boca Raton, Florida, Bond Counsel, a will issue an opinion to the effect that under existing statutes, regulations and judicial decisions, interest on the Series 1993 Bonds is excluded from the gross income for purposes of federal income taxation and is not an item of lax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, ! but that in the case of corporations (as defined for federal income tax purposes), such interest is taken into ;• account in determining adjusted current earnings for purposes of such alternative minimum tax. The opinion summarized in the preceding paragraph is subject to the condition that the County comply with all requirements of the Internal Revenue Code of 1986, as amended, and applicable regulations promulgated with respect thereto (the "Code"), that must be satisfied subsequent to the issuance of the Series 1993 Bonds in order that the interest thereon be and continue to be excluded from gross income for federal income tax purposes. The County has covenanted to comply with all such requirements, which include, inter Alia, restrictions upon the yield at which proceeds of the Series 1993 Bonds and other money held for payment of the Series 1993 Bonds and deemed "proceeds" thereof maybe invested and the requirement to calculate and rebate any arbitrage that may be generated with respect to investments attributable to the Series 1993 Bonds. Failure to comply with such requirements could cause the interest on the Series 1993 Bonds to be included in gross income retroactive to the date of issuance of the Series 1993 Bonds. Ownership of the Series 1993 Bonds may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, certain subchapter S corporations with substantial passive income and Subchapter C earnings and profits, individual recipients of Social Security or Railroad Retirement benefits and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry the Series 1993 Bonds. Bond Counsel will express no opinion as to such collateral tax consequences, and prospective purchasers of the Series 1993 Bonds should consult their tax advisors. The County has covenanted, and will issue its certificate to the effect that on the basis of the facts, estimates and circumstances in existence on the date of delivery of the Series 1993 Bonds, the proceeds of the Series 1993 Bonds will not be used in a manner that would cause the Series 1993 Bonds to be or become "arbitrage bonds." In the opinion of Bond Counsel, based upon the facts, estimates and circumstances set forth in said certificate, the Series 1993 Bonds are not presently 'arbitrage bonds" under existing statutes, regulations and judicial decisions. No representation is made or can be made by the County or any other party associated with the issuance of the Series 1993 Bonds as to whether or not any legislation now or hereafter introduced and enacted will be applied retroactively so as to subject interest on the Series 1993 Bonds to inclusion in gross income for Federal income tax purposes or so as to otherwise affect the marketability or market value of the Series 1993 Bonds. Enactment of any legislation that subjects the interest on the Series 1993 Bonds to inclusion in gross income for federal income lax purposes or otherwise imposes taxation on the Series 1993 Bonds or the interest paid thereon may have an adverse effect on the market value or marketability of the Series 1993 Bonds. 23 Ftorfda Tax Matters On the date of delivery of the Series 1993 Bonds, Bond Counsel will issue an opinion to the effect that under existing statutes, regulations and judicial decisions, the Series 1993 Bonds and the income therefrom are exempt from taxation under the laws of the State of Florida, except as to estate taxes and taxes imposed by Chapter 220, Florida Statutes, on interest, income or profits on debt obligations owned by corporations, banks and savings associations. Other Federal Income Tax Matters Interest Expense Deductions for Financial Institutions Under the Code, financial institutions are disallowed 100 percent of their interest expense deductions that are allocable, by a formula, to tax-exempt obligations acquired after August 7, 1986. An exception, which reduces the amount of the disallowance, is provided for tax-exempt obligations issued by a qualified issuer that specifically designates such obligations as "qualified tax-exempt obligations" under Section 265 of the Code. The Series 1993 Bonds have not been designated as "qualified tax-exempt obligations" Financial institutions intending to purchase, Series 1993 Bonds should consult with their professional tax advisors to determine the effect of the interest expense disallowance on their federal income tax liability. Original Issue Discount In the opinion of Bond Counsel, under existing statutes, regulations and judicial decisions, the original issue discount in the selling price of those maturities of the Series 1993 Bonds being sold in the initial public offering with original issue discount is, to the extent properly allocable to each Hold --r of such Series 1993 Bonds, excludable from gross income for federal income tax purposes of such Holder, but may not be excludable from the calculation of "adjusted current earnings" for purposes of the alternative minimum tax imposed on corporations (as defined for federal income tax purposes). The original issue discount with respect to any maturity of the Series 1993 Bonds is the excess of the stated redemption price at maturity of such Series 1993 Bonds over the initial offering price at which a substantial amount of the Series 1993 Bonds of such maturity were sold to the public, excluding underwriters and other intermediaries, in the initial public offering. Accrued original issue discount will increase a Holder's lax basis in a Series 1993 Bond and affect the determination of taxable gain from any sale or exchange of such Series 1993 Bond. Prospective purchasers of the Series 1993 Bonds being sold in the initial public offering with original issue discount should consult their tax advisors for further information concerning the manner in which the original issue discount is apportioned among successive holders and the tax consequences of purchasing, holding and selling such bonds, VERIFICATION OF MATHEMATICAL COMPUTATIONS The accuracy of the mathematical computations supporting the conclusions (i) that the principal amounts and the interest on the Escrow Securities and other funds deposited in escrow under the Escrow Agreement are adequate to provide for the payment when due of the principal, interest and redemption premium, if any, on the Refunded Bonds and (ii) that the yield on the Escrow Securities or the Series 1993 Bonds does not cause the Series 1993 Bonds to be "arbitrage bonds" under Section 148 of the Internal Revenue Code of 1986, as amended, will be verified by , independent certified public accountants, based upon schedules provided by William R. Hough & Co. 24 RATINGS Fitch Investors Service, Inc., Moody's Investors Service and Standard & Poor's Corporation have assigned ratings of " -" and " " respectively, to the Series 1993 Bonds, with the understanding that, upon delivery of the Series 1993 Bonds, the Financial Guaranty Policy will be issued by Financial Guaranty. Such ratings reflect only the views of such organizations and any desired explanation of the significance of such ratings should be obtained from the rating agency furnishing the same, at the following addresses: Fitch Investors Service, Inc., One State Street Plaza, New York, New York 10004; Moody's Investors Service, Inc,, 99 Church Street, New York, New York 10007; Standard & Poor's Corporation, 25 Broadway, New York, New York 10004. Generally a rating agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its own. There is no assurance such ratings will continue for any given period of time or that such ratings will not be revised downward or withdrawn entirely by the rating agencies, if in the judgment of such rating agencies, circumstances so warrant. Any such downward revision or witbdrawal of such ratings may have an adverse effect on the market price of the Series 1993 Bonds. UNDERWRITING The Series 1993 Bonds are being purchased by William R. Hough & Co. (the Underwriter"), subject to certain terms and conditions set forth in a bond purchase agreement between the County and the Underwriter, including the approval of certain legal matters by Bond Counsel and the existence of no material change in the affairs of the County from those set forth in this Official Statement. The aggregate purchase price payable by the Underwriter is $ plus accrued interest on the Series 1993 Bonds from March 1, 1993 to the date of delivery of the Series 1993 Bonds. The Series 1993 Bonds are offered for sale to the public at the price set forth on the cover page of this Official Statement. The Series 1993 Bonds may be offered and sold to certain dealers at prices lower than such offering prices, and such public offering prices may be changed, from lime to lime, by the Underwriter. APPROVAL OF LEGALITY Certain legal matters incident to the authorization, issuance, sale, and delivery of the Series 1993 Bonds, and the treatment of the interest thereon for federal income tax purposes, are subject to the approval of Rhoads & Sinon, Boca Raton, Florida, Bond Counsel, whose approving opinion in substantially the form attached hereto as Appendix E will be printed on all of the Series 1993 Bonds. In its capacity as Bond Counsel, Rhoads & Sinon has participated in the preparation of, and has reviewed those portions of this Official Statement contained under the captions "PURPOSE OF THE SERIES 1993 BONDS," "DESCRIPTION OF THE SERIES 1993 BONDS; "SECURITY AND SOURCES OF PAYMENT" (other than financial data set forth therein), "APPROVAL OF LEGALITY," and "TAX EXEMPTION" insofar as such portions and such language summarize or describe: the terms of the Series 1993 Bonds, the Master Bond Resolution and the tax-exempt status of the Series 1993 Bonds. The firm has not been retained to pass upon, and will not express any opinion upon, any other information contained in this Official Statement or that may be made available to prospective purchasers of the Series 1993 Bonds. Certain legal matters will be passed upon for the County by the County Attorney, Charles P. Vitunac, Vero Beach, Florida, and for the Underwriter by its co -counsel, Bryant, Miller and Olive, PA., Tallahassee, Florida and losias & Goren, PA., Fort Lauderdale, Florida. ACCURACY AND COMPLETENESS OF THE OFFICIAL STATEMENT The references to, and excerpts of, all documents referred to herein do not purport to be complete statements of the provisions of such documents and reference is directed to all such documents for full and complete statements of all matters of fact relating to the Series 1993 Bonds, the security for the payment of the Series 1993 Bonds, and the rights and obligations of Registered Owners thereof. 25 The information contained in this Official Statement has been compiled from official and other sources deemed to be reliable and, while not guaranteed as to completeness or accuracy, is believed to be correct as of this date. Any statements made in this Official Statement involving matters of opinion or estimates, whether or not so expressly stated, are set forth as such and not as representation of fad, and no representation is made that any such estimates will be realized. Neither this Official Statement nor any statement which may have been made verbally or in writing is to be construed as a contract with the holders of the Series 1993 Bonds. ADDITIONAL INFORMATION The brief descriptions of the Master Bond Resolution, the Series 1993 Bonds, and other documents pertaining to the Series 1993 Bonds contained in this Official Statement are qualified in their entirety by reference to the originals of such documents, copies of which are available from Indian River County, Florida, 1840 25th Street, Vero Beach, Florida 32%% Attention: Joseph A. Baird, during the period of the initial offering of the Series 1943 Bonds. AUTHORIZATION OF OFFICIAL STATEMENT The delivery of this Official Statement has been duly authorized by the Board of County Commissioners of the County. At the time of delivery of the Series 1943 Bonds, the Chairman of the Board of County Commissioners and the County Administrator, acting on behalf of the County, will furnish a certificate to the effect that nothing has come to their attention which would lead them to believe that the Official Statement, as of its date and as of the delivery of the Series 1993 Bonds, contains an untrue statement of a material fact or omits to state a material fad which should be included therein for the purposes for which the Official Statement is intended to be used, or which is necessary to make the statements contained therein, in the light of the circumstances under which they were made, not misleading. INDIAN RIVER COUNTY, FLORIDA Richard N. Bird, Chairman Board of County Commissioners James E. Chandler County Administrator 26 APPENDIX A INDIAN RIVER COUNTY, FLORIDA GENERAL INFORMATION GENERAL INFORMATION CONCERNING INDIAN RIVER COUNTY, FLORIDA The following information has been provided by Indian River County, Florida, and Is included only for the purpose of providing general background Information. The Information has been compiled on behalf of the County, and such compilation involved oral and written communication with various of the sources indicated. The Information Is subject to change, although efforts have been made to update Information where practicable. The Series 1993 Bonds are not a general obligation of the State of Florida or any political subdivision thereof, including Indian River County, and are only payable from the sources described in the official statement. Descriptioo Indian River County (the "County") was established in 1925 by an Act of the legislature separating it from St. Lucie County. The County encompasses approximately 497 square miles and is located in the middle of Florida on the eastern coast, approximately 135 miles north of Miami, 190 miles south of Jacksonville and 135 miles east of St. Petersburg. The County is bounded on the north by Brevard County, on the south by St. Lucie County on the west by Osceola and Okeechobee Counties and on the east by the Atlantic Ocean. The City of Vero Beach is the seat of County government and the largest city in the County. Other incorporated cities located within the County are Fellsmere, Indian River Shores, Orchid and Sebastian. There are approximately 100 miles of waterfront land in the County, including approximately 23 miles of Atlantic Ocean beaches. Government Indian River County has a five -member Board of County Commissioners (the "Commission"). Each member represents one of five districts, elected at large (County -wide) for staggered terms of four years. The Chairman and Vice -Chairman are elected by the Commission. A County Administrator is appointed by the Board and is responsible for administrative and fiscal control of the resources of the County. The following is a list of the Commissioners and the expiration of their respective terms. ]Name Office Term Exnire$ Richard N. Bird Chairman November, 1996 John W. Tippin Vice -Chairman November, 1994 Fran B. Adams Member November, 1996 Carolyn K. Eggert Member November, 1994 Kenneth R. Macht Member November, 1996 The Commission apportions and levies County taxes and controls the expenditure of all County funds, except schools which are controlled by the School Board of Indian River County, and except for Hospital funds which are controlled by an independent taxing district. The budget year of the County runs from October 1 to the following September 30. Operating revenue is raised from ad valorem taxes, real and personal property taxes, and user fees with supplements from state and federal sources. The Commission operates a county road system, water and sewer system, solid waste disposal system, and public golf course and other recreational facilities, and has power to establish, build, maintain, repair, protect and preserve these public facilities. A-1 Other elected officials serving County -wide are a Property Appraiser, Tax Collector, Supervisor of Elections, Sheriff and Clerk of the Circuit Court who is also the Clerk of the Board of County Commissioners. ZAMdado The 1990 Census population of the County was 90,208, an increase of 50.6% over the 1980 Census population of 59,896. Vero Beach, the largest city in the County, and the County Seat, had a 1990 Census population of 17,350, an increase of 7.4% over the 1980 Census population of 16,176. In 1990, Indian River County ranked 31st out of 67 counties in Florida in terms of total population, representing .7% of the total state population at that time. As illustrated in the following table, the population of the County has more than tripled since 1960. It is anticipated that the growth of the County will continue for the foreseeable future. MW POnnlatlOn % Annual Increase 1960 25,309 11.32 1970 35,992 4.22 1980 59,8% 6.64 1985 76,442 2.76 1986 80,023 4.68 1987 83,515 4.36 1988 87,512 4.79 1989 89,000 1.70 1990 90,208 1.35 1991 92,429 2.46 1992• 94,091 2.46 Source: U.S. Census and University of Florida, Bureau of Economic and Business Research While the population of the County has been steadily increasing, so has the median age of the resident population. The number of persons age 15-44 is the largest age category. The following table illustrates the percentage of population in the various age groups since 1960. Aae Grouo IM 1279 IM 1249 ME 0-14 30.4% 27.3% 18.1% 15.6% 16.3% 15-44 33.5 33.4 37.2 40.0 34.8 45.64 22.1 21.9 24.4 22.2 21.7 65+ 13.9 17.4 20.3 25.2 27.2 • These figures were provided by the Indian River County Chamber of Commerce. A-2 lation Changg 1980 Census.......................................................... 59,896 1990 Census.......................................................... 901208 Percent Change ................................................... 50.61% Components of Change due to Natural Increase ............................... 573 Components of Change due to Net Migration ................................. 29,739 Percentage of Change due to Natural Increase ................................. 1.89% Percentage of Change due to Net Migration .................................. 98.11% Source: University of Florida, Bureau of Economic and Business Research. IndusS� The economy of Indian River County is based upon agriculture (citrus and cattle), tourism, light manufacturing, wholesale and retail trade and commercial fishing. In the crop year 1989-1990 Indian River County had 66,116 acres of citrus which produced 17,000,808 boxes of oranges, grapefruit and specialty fruit. The County was fourth among all Florida Counties in total citrus production, but second in grapefruit production. Part of the citrus fruit is sold to the fresh fruit market, and there are also 21 major packing houses and one citrus juice processing plant located in the County. Approximately 50,000 acres of improved pasture and rangeland are utilized for dairy farming and beef cattle production, while approximately 35,000 acres remain as forest and woodlands. Sun Ag, Inc. has extensive citrus and agriculture interests in the County, employing approximately 750 persons at the peak of the citrus season. Their agricultural properties, including a citrus packing plant, are located west of Fellsmere in the central part of the County. Other industries include lumber and millwork plants, cabinets and millwork plants, machine shops, welding shops, sheet metal fabricators, mattress licking, construction, architectural and ornamental iron works, stone and marble products, asphalt plant, pilot training school, welding school, television antennas, wholesale seafood, metal windows and awnings, printing, air handling systems, ready mix concrete, concrete blocks, 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, eleven savings and loan associations and twenty securities brokerage offices provide financial services within the County. prism 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 approximately 23 miles of Atlantic Ocean beaches as well as two state parks, five county parks, and eight public and six private golf courses provide ample opportunity for outdoor recreation. The Los Angeles Dodgers baseball club trains at Dodgerlown 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. A-3 Indian River county employment fluctuates seasonally with most unemployment occurring from July through October, the slower months in both the tourist and citrus picking seasons. Employment by sector for the calendar year ended 1989 is as follows: Percent of Dlstributlon Agriculture 11.45% Manufacturing 7.16 Construction 10.24 Transportation, Communications & Utilities 2.63 Wholesale Trade 1.59 Retail Trade 24.66 Finance, Insurance & Real Estate 5.41 Services 30.12 Government --fiz Total 100.00% Source: State of Florida, Department of Labor and Employment Security. follows: Major employers in Indian River County and their approximate current level of employment are as Product or Indian River County School District School System 1,735 Indian River Memorial Hospital Medical Services 1,3W Indian River County County Government 1,240 Sun Ag., Inc. Citrus & Agriculture 800 Publix Corporation Retail Grocery 750 City of Vero Beach City Government 596 Humana Hospital Sebastian Acute Care Facility 570 Gracewood Fruit Co. Citrus 465 Grave Brothers, Inc. Citrus 450 Hale Groves Citrus 450 Dodgertown Complex Convention Center, Baseball 400 Piper Aircraft Corp. Aircraft Manufacturing 331 yyalMart Retail Merchandise 330 Johns Island Residential Resort 325 Winn Dixie Retail Merchandise 280 Source: Indian River County A-4 The following table sets forth a comparison of the unemployment rate in the County compared to that in the State of Florida: Indian River County State of Florida 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 53 Source: State of Florida, Department of Labor and Employment Security Rail transportation in the County is handled by Florida East Coast Railway while numerous freight truck lines are available to serve the County. Highways providing surface travel are Interstate 95, U.S. 1, and State Road AIA for north -south travel and State Road 60 for travel to the west while the Florida Turnpike courses south and northwest through the southwest corner of the County. The area is served by Greyhound Bus Lines for passenger and package service. Vero Beach Municipal Airport provides scheduled commuter airline service and is capable of handling most commercial aircraft, while one other airport in the County serves both charter and private aircraft. Scheduled airline service is available to County residents at the Melbourne Regional Airport (about a fdty minute drive), Orlando International Airport and Palm Beach International Airport (each about an hour and a half drive). Health Care The Indian River Hospital District, encompassing all but six square miles of the County, has a 347 -bed facility in Vero Beach. The Humana Hospital Sebastian, a private for-profit acute care facility, is located in the northern part of the County on U.S. 1. There are presently over 200 physicians serving the hospital and area residents. The Sunshine Rehabilitation Center offers physical and speech therapy to handicapped children and adults. The educational system is administered on a County -wide basis. The School Board, elected for staggered four-year terms each, appoints a Superintendent of Schools. The County has 12 elementary schools, one middle junior high, two middle schools, one junior high and one senior high. There is one Special Education School for all grades. Enrollment for the 1990-1991 school year is 11,772 students. There are 787 administrative and teaching personnel and 608 non -instructional personnel. In addition to the public school system, there are several parochial and private schools. Indian River Community College, with its main campus located in Ft. Pierce, about 15 miles from Vero Beach, has branch campuses in Vero Beach and in Okeechobee and Martin Counties. The State -supported community college offers a general college program for the fust two years and a wide variety of technical and vocational instruction. The Mueller Center in Vero Beach has a 40 acre campus, ten classrooms and office facilities. A-5 One daily newspaper is published in the County. There are five local radio stations. Television reception is good for the major commercial stations and cable is available to the County. Telephone service is supplied by Southern Bell. Vero Beach Electric System and Florida Power & Light Company supply electricity. LOCAL AND STATE TAXES Florida has no individual state income tax. Inheritance tax is confined to the amount allowed as a credit to the State from the tax levied by the United States government. The 6% regular sales tax plus the 1% local option sales tax applies to all items except groceries and medicines. Under the Florida Homestead Exemption law, no municipal or county taxes are levied against the first 575,000 for valuation of a home occupied by its owners except for special assessments. It is a state law that all tax appraisals must be at 100% of value. The Florida corporate tax is 5.5% with an exemption and no surcharge. The Board of County Commissioners of Indian River County is limited by the Constitution of Florida to an ad valorem tax levy of 10.0 mills per $1,000 of assessed value for operating expenditures, with an additional 10.0 mills within special created municipal service taxing units. The following tables provide statistical information on the County's tax collection history, assessed property values, debt structure and principal taxpayers: INDIAN RIVER COUNTY, FLORIDA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Source: (1) Department of Revenue, State of Florida and Indian River County Comprehensive Annual Financial Report, Fiscal Year 1992. A-6 Percent of Total Fiscal Total Assessed to Total Year Real Property Personal Property Total Assessed Estimated Estimated Faded Assessed Value Assessed Value Value Actual Value Actual Value(" 1982 2,442,835,490 200,607,110 2,643,442,600 2,745,007,892 96.3 1983 2,984,489,960 170,588,980 3,155,078,940 3,180,523,125 99.2 1984 3,311,355,000 181,269,850 3,492,614,850 3,492,624,250 100.0 1985 3,534,015,949 187,757,610 3,721,782,559 3,721,782,559 100.0 1986 3,781,716,839 229,364,177 4,011,081,016 4,011,081,016 100.0 1987 3,974,458,157 259,733,289 4,234,191,446 4,276,961,057 99.0 1988 4,387,121,880 280,414,239 4,667,536,119 4,667,536,119 100.0 1989 4,570,700,250 303,141,158 4,873,841,408 4,873,811,408 100.0 1990 4,954,816,716 321,397,153 5,276,213,869 5,276,213,869 100.0 1991 5,353,680,640 347,990,177 5,701,670,817 5,782,627,603 98.6 1992 6,200,439440 362,973,529 6,563,412,969 6,656,605,445 99.6 Source: (1) Department of Revenue, State of Florida and Indian River County Comprehensive Annual Financial Report, Fiscal Year 1992. A-6 "_. INDIAN RIVER COUNTY, FLORIDA PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS Current (PER SIAW OF ASSESSED VALUE) Delinquent Total of Total Fiscal Total LAST TEN FISCAL YEARS of Levy Tax Tax Collections YMr Tax Lew Collections Collected Collections Collections to Lew 1982 Independent 8,704,138 9536 Cody -Wide Taxing Districts Taxing Districts 1983 VY 8,956,111 %55 Total 8,966,622 %.66 nZ Fiscall�� 12,926,975 School County- 9,258 12,421,801 ASAL �� Coun61_) Board Other(') Wide i i (3) I) D&E 14,449,623 4.29358 6.61600 .88398 11.79356 3.87881 234996 1983 3.46325 6.24700 .90480 10.61505 3.10724 2.11452 = 1984 4.07264 6.67120 1.95895 12.70279 3.42355 2.34516 1985 4.46514 6.71380 1.94202 13.12096 3.49458 334028 1986 4.72025 6.92780 1.77208 13.42013 3.95872 2.56083 1987 6.15344 6.92340 1.88558 14.96242 5.36896 256025 1988 7.21730 735880 2.17036 16.74646 5.55240 3.11748 1989 7.03750 759160 1.68019 1630929 5.68680 3.08220 1990 7.14860 8.07040 2.00877 17.22777 6.08563 3.00720 1991 6.77230 832080 2.16825 17.26135 6.04394 3.01990 1992 6.15160 936170 1.91520 17.42850 4.82256 4.00770 (1) Composite tax rates (2) Per Florida Statute 200.071, no ad valorem tax millage shall be levied against real property and tangible personal property by counties in excess of 10 mills, except for voted levies. (3) Average tax rate Source: State of Florida and Indian River County Comprehensive Annual Financial Report, Fiscal Year 1992. INDIAN RIVER COUNTY, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Source: Indian River County Comprehensive Annual Financial Report, Fiscal Year 1992. A-7 Percent Current Percent Delinquent Total of Total Fiscal Total Tax of Levy Tax Tax Collections YMr Tax Lew Collections Collected Collections Collections to Lew 1982 9,129,460 8,704,138 9536 184,000 8,888,138 97.36 1983 9,276,416 8,956,111 %55 10,511 8,966,622 %.66 1984 12,926,975 12,412,543 %.02 9,258 12,421,801 %.09 1985 15,186,814 14,423,407 94.97 26,216 14,449,623 95.15 1986 17,709,388 16,970,965 95.83 42,828 17,013,793 96.07 1987 22,292,164 21,146,969 94.86 27,719 21,174,688 94.99 1988 27,551,218 27,041,829 98.15 277,384 27,319,213 99.16 1989 28,110,296 26,916,117 95.75 93,088 27,009,205 %.08 1990 32,890,687 31,471,607 95.69 77,376 31,548,983 95.92 1991 34,559,500 33,265,772 %.26 245,389 33,511,161 %.97 1992 36,316,457 34,977,492 %.31 102,452 35,079,944 %.60 Source: Indian River County Comprehensive Annual Financial Report, Fiscal Year 1992. A-7 (1) Total assessed value $6,563,412,969 Source: Indian River County Property Appraiser All taxes are due and payable on November 1 of each year or as soon thereafter as the assessment roll is certified and delivered to the Tax Collector. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the month of December, 2% in the month of January and 1% in the month of February. The taxes paid in March are without discount. Delinquent taxes on real property bear interest of 18% per year. On or prior to June 1 following the tax year, certificates are sold for all delinquent taxes on real property. After sale, tax certificates bear interest of 18% per year or at any lower rate bid by the buyer. Application for a tax deed on any unredeemed tax certificates may be made by the certificate holder after a period of two years. Unsold certificates are held by the County. Delinquent taxes on personal property bear interest of 18% per year until the tax is satisfied either by seizure and sale of the property or by the five-year statute of limitations. The County does not accrue its portion of the County -held certificates due to the immaterial amount. A-8 INDIAN RIVER COUNTY, FLORIDA PRINCIPAL TAXPAYERS SEPTEMBER 30, 1991 Percent 1991 Assessed of Total Assessed Imam Fellsmere Joint Venture LZ of Business Agriculture Value(11 $88,512,082 Value 1.35% Southern Bell Telephone utility 63,621,840 .97 John's Island, Inc. Land development 53,009,770 Al Adult Communities Total Services Health care 40,297,530 .61 Florida Power & Light Electric utility 36,404,810 .55 Windsor Properties & Club Land development 29,960,450 .46 General Development Corp. Land development 23,066,329 35 Graves Brothers Agriculture 20,170,620 31 J.M. Berry Groves, Inc. Agriculture 19,604,122 .30 Piper Aircraft Company Aircraft manufacturing 19,526,305 .30 (1) Total assessed value $6,563,412,969 Source: Indian River County Property Appraiser All taxes are due and payable on November 1 of each year or as soon thereafter as the assessment roll is certified and delivered to the Tax Collector. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the month of December, 2% in the month of January and 1% in the month of February. The taxes paid in March are without discount. Delinquent taxes on real property bear interest of 18% per year. On or prior to June 1 following the tax year, certificates are sold for all delinquent taxes on real property. After sale, tax certificates bear interest of 18% per year or at any lower rate bid by the buyer. Application for a tax deed on any unredeemed tax certificates may be made by the certificate holder after a period of two years. Unsold certificates are held by the County. Delinquent taxes on personal property bear interest of 18% per year until the tax is satisfied either by seizure and sale of the property or by the five-year statute of limitations. The County does not accrue its portion of the County -held certificates due to the immaterial amount. A-8 I X B A P p E N p INDIAN RIVER COUNTY, FLORIDA FINANCIAL STATEMENTS FISCAL YEAR ENDED SEPTEMBER 30, 1992 TABLE OF CONTENTS REPORT OF INDEPENDENT ACCOUNTANTS B-1 GENERAL PURPOSE FINANCIAL STATEMENTS (COMBINED STATEMENTS - OVERVIEW) Combined Balance Sheet - All Fund Types and Account Groups B-9 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Fund B-6 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types B-8 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types B-12 Combined Statement of Cash Flows - All Proprietary Fund Types B-13 Notes to Financial Statements B-15 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS Enterprise Funds: Combining Balance Sheet B-62 Combining Statement of Revenues, Expenses and Changes in Retained Earnings B-66 Combining Statement of Cash Flows B-68 r f FF l I Cowers I oeAilied public accountants 'v^ Y I &Lyarana Report of Independent Accountants The Honorable County Commissioners and Constitutional Officers Indian River County, Florida We have audited the accompanying general-purpose financial statements and the combining and individual fund financial statements of the enterprise funds of Indian River County, Florida, as of and for the year ended September 30, 1992, as listed in the Table of Contents. These financial statements are the respon- sibility of Indian River County, Florida, management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. in our opinion, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of Indian River County, Florida, at September 30, 1992, and the results of its operations and the cash flows of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles. Also, in our opinion, the combining and individual fund financial statements of the enterprise funds referred to above present fairly, in all material respects, the financial position of each of the individual funds financial statements of Indian River County, Florida, as of September 30, 1992, and the results of operations of such funds and the cash flows of the individual proprietary funds for the year then ended in conformity with generally accepted accounting principles. C'"Azlw OA4`y��ac Orlando, Florida January 29, 1993 B-1 B-2 GENERAL-PURPOSE FINANCIAL STATEMENTS (COMBINED STATENENTS - OVERVIEW) These basic financial statements provide a summary overview of the financial position of all funds and account groups as well as the operating results of all funds. They also serve as an introduction to the more detailed statements and schedules that follow in the next subsection. B-3 INDIAN RIVER COUN1l, FLORIDA COIEINID BALANCE SST ALL FUND TYPES AND ACCOUNT GROUPS September 30, 1992 ASSETS AND OTHER DEBITS Cash and cash equivalents Investments Accounts receivable - net Special assessments receivable - deferred Due from other funds Due from other governments Interest receivable Inventories Restricted assets: Cash and cash equivalents Investments Due from other governasnts Impact fees receivable Special assessments receivable Advance to other funds Property, plant and equipment Accumulated depreciation Unamortized bond costs Intangible assets Deposits Amount available in debt service funds Amount to be provided for retirement of general long-term debt Total Assets and Other Debits LIABILITIES. FUND EQUITY AND OTHER CREDITS Liabilities: Accounts payable Retainage payable Claims payable Arbitrage rebate payable Due to other governments Deferred compensation Other deposits held in escrow Deferred revenues Due to other funds Payable from restricted assets Advance from other funds Accrued compensated absences capital leases Bonds payable - net of discounts Total liabilities Fund Equity and Other Credits: Investment in general fixed assets Contributions Retained earnings: Reserved Unreserved Fund balances: Reserved Unreserved, undesignated Total fund equity and other credits Total Liabilities, Fund Equity and Other Credits GOVERNMENTAL FUND TYPES SPECIAL DEBT CAPITAL GENERAL REVENUE SERVICE PROJECTS S 1,122,301 $ 5,021,335 $ 4,641,304 $ 1,335,293 7,460,599 11,687,302 1,283,101 8,136,104 610,045 2S,602 - - - 725,816 3,270,269 1,684,611 58,856 1,916 - 322,159 29/,627 183,972 713,992 57,367 128,463 7,117 56,199 47,548 - - - 514,284,630 520.91:2.001 S 9.388.029 510.243.588 6 1,416,404 $ 728,091 $ 1,540 107,974 169,366 15,787 106,432 - 80,120 725,816 - 11510,985 1,773,862 3.088,653 1,525,483 - 10.985,285 17.853.318 12.510.768 17.653.348 3,3/2,289 607,500 3.949,789 $ 164,981 53,703 17,750 236.434 5,438,240 10,007,154 5.438,240 10.007.154 8U.28L,630 $20.942.001 6 9,388,029 210,2�i88 B-4 B-5 Rhe accompanying notes are an integral part of the financial statements. rIDDCIARY PROPRIETARY rUND TYPES FUND TYPES ACCOUNT GROUPS GENERAL TOTALS INTERNAL TRUST AND GENERAL LONG-TERM (MEMORANDUM mrrmPRISE SERVICE AGENCY rIXED ASSETS DEET ONLY) $ 2.539,85E $ 50,732 $ 4,233,355 S - $ - S 21,944,178 966,006 3,750,914 523,094 - - 36,797,420 1,602,039 1.630 5,569 - - 2,244,805 - - - - - 3,996.105 1.761 - - - - 1,747.174 417,318 2,842 - - - 1,934,910 218,720 22.901 2,977 - - 493,744 441,821 164,613 13,067 - - 667,049 3,027,121 - - - - 3,027,121 18.209,012 - - - - 18,209,012 105.328 - - - - 105,328 2,169,033 - - - - 2,169,833 2.329,290 - - - - 2,329,290 607,500 - - - - 607,500 111,069,115 285,571 - 70,889,630 - 163,044,324 (17,807,961) (224,033) - - - (18,111.994) 725,595 ^ - - - 725,595 366,133 - - - - 366.133 1,094 - - - - 10094 - - - - 5,438,240 5,438.240 - $127.710,353 - S 4.063,170 - S 4.778.062 - JZ&,e89.63E 16.S85.972 922,024,212 16.585.972 5284.323.713 S 648,598 S 105,255 $ 222.525 S - $ - $ 3,285,854 - - - - - 163,217 - 1,210,257 - - - 1,216,257 - - - - 125,791 125,791 7,157 - 1,074,838 ^ - 1,267,14E ^ - 1,116,050 - - 1,116e050 18,737 - 1,993,434 - - 2,136,353 60,08E - - - - 4,209,313 - - 236,189 - - 1.747,174 7,478,318 - - - - 7,478,319 - - - - 607,500 199,979 29,855 - - 1,784,225 2,004,059 - - - - 534,196 534,196 44.3#1,632 - - 19.588.000 63.921.632 $2,744-509 1,353.367 4.643.036 - 22.024,212 89.813.862 - - - 70,889,639 - 70,009,638 59,046,017 637,643 - - - 60:4 56 4,320,737 - - - 4,320,737 10,797,120 2,072,160 ^ - - 12,869,280 - - - - - 16,970,077 - - 135,026 - - 28.973.6S9 74,965,674 2,709.803 9 4,063.170 135,026 6 4.770.062 70.889.638 870,eE9,639 - 522.024.212 194.509.851 8284.323.713 2127,710,383 B-5 Rhe accompanying notes are an integral part of the financial statements. INDIAN RIVER COUNTY, FLORIDA COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND Year Ended September 30, 1992 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Interest Miscellaneous Total revenues Expenditures: Current: General Government Public Safety Physical Environment Transportation Economic Environment Human Services Culture/Recreation Debt Service: Principal Interest Capital Projects Total expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Lease purchase proceeds Total other financing sources (uses) Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balances at Beginning of Year Residual Fund Equity Transfer In (Out) Fund Balances at End of Year B-6 GOVERNMENTAL 12,432,294 SPECIAL GENERAL REVENUE $ 30,296,589 S 9,379,127 258,237 10,599 4,929,909 3,367,418 5,029,207 391,541 507,052 176,594 - 2,262,662 1,377,605 1,123,089 1,095,422 484,357 43,494,021 17,195,387 12,432,294 703,763 19,726,154 7,545,775 217,426 - 90,968 9,205,847 152,612 - 2,195,463 1007,698 4,715,077 413,411 106,855 67,475 72,106 14,229 39,708,955 19,258,198 3,785,066 (2,062,811) 6,219,803 (12,637,749) 29,669 (6.388,277) (2,603,211) 15,011,826 102,153 S 12 510.7668 6,842,447 (203,791) 6,638,656 4,575,845 13,954,590 (677,087) S 17e ,348 _ FUND TYPES FIDUCIARY FUND TYPE EXPENDABLE TRUST - DEBT CAPITAL (INMATE - SERVICE PROJECTS WELFARE) S 1,586,476 $ 4,871,517 $ - 1,268,942 717,571 - - - 129,171 2,436,312 - - 806,522 423,591 - _ 612 - - - 6,098,664 6,012,679 129,171 4,078,548 1,923,101 6,001,649 97.215 (98,952) (98,952) 5.789.530 5.789.530 223.149 80,000 (286,424) (206.424) 94,427 94.427 34.744 TOTALS (MEMORANDUM ONLY) S 46,133,709 268,836 10,283,840 5,549,919 683,646 4,698,974 3,730,807 1.580,391 72.930,122 13,136,057 27,366,356 217,426 9,296,815 152,612 3,503,161 5,128,488 4,252,878 2,009,436 5,789,530 70.852,759 2,077,363 13,142,250 (13,226,916) 29,669 (54.997) (1,737) 16,725 34,744 2,022,366 5,656,699 9,415,495 100,282 44,138,892 (216.722) 574,934 - (216.722) S 5.438.240 S 10.007.154 8135,026 S 45.944.536 The accompanying notes are an integral part of the financial statements. B-7 v INDIAN RIVER COUNTY, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL ALL GOVERNMENTAL FUND TYPES Year Ended September 30, 1992 GENERAL Revenues: Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments interest Miscellaneous Total revenues Expenditures: Current: General Government Public Safety Physical Environment Transportation Economic Environment Human Services Culture/Recreation Debt Service: Principal Interest Capital Projects Total expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Operating transfers in Operating transfers out Lease purchase proceeds Total other financial sources (uses) Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balances at Beginning of Year Residual Fund Equity Transfer In (Out) Fund Balances at End of Year BUDGET $ 28,846,124 173,000 4,757,780 4,856,713 487,200 1,192,000 255,573 40.568,390 13,344,355 19,957,832 267,711 244,107 154,800 2,162,652 5,071,351 106,872 72,115 41,381,795 (813,405) 6,848,851 (12,642x934) 29.669 (5,764.414) S (¢.527.819) ACTUAL $ 30,296,589 258,237 4,929,909 5,029,207 507,052 1,377,605 1,095,422 43,494.021 12,432,294 19,726,154 217,426 90,968 152,612 2,195,463 4,715,077 106,855 72,106 39.708.955 3,785.066 6,219,803 (12,637,749) 29,669 (6,388,277) VARIANCE FAVORABLE (UNFAVORABLEZ $ 1,450,465 85,237 172,129 172,494 19,852 185,605 839,849 2,925,631 912,061 231,678 50,285 153,139 2,188 (32,811) 356,274 17 9 1,672.840 4,598.471 (629,048) 5x185 (623.863) (2,603,211) S 3,974,608 15,011,826 102,153 SS 125110 68 ... SPECIAL REVENUE DEBT SERVICE ' VARIANCE VARIANCE FAVORABLE FAVORABLE BUDGET ACTUAL (UNFAVORABLE( BUDGET ACTUAL (UNFAVORABLE) S 9,203,589 S 9,379,127 $ 175,538 $ 1,567,784 $ 1,586,476 $ 18,692 - 10,599 10,599 - - - 2,569,452 3,367,418 797,966 1,324,945 1,268,942 (56,003) 457,651 391,541 (66,110) - - - 80,760 176,594 95,834 - - - 2,628,952 2,262,662 (366,290) 2,721,947 2,436,312 (285,635) 1,007,050 1,123089 116,039 762,423 806,522 44,099 420,217 484,357 64,140 - 612 612 16.367,671 17,195,387 827,716 6,377.099 6.098,864 (278.235) 800,610 703,763 96,847 - - - 7,850,677 7,545,775 304,902 - - - 17,916,398 9,205,847 8,710,551 1,378,536 1,307,696 70,838 - - - 479,350 413,411 65,939 - - - 87,699 67,475 20,224 4,078,549 4,078,548 1 19,430 14,229 5,201 2,062,178 1,923,101 139,077 28.532,700 19,258.198 9,274.502 6.140,727 6,001,649 139,078 (12.165,029) (2,062,811) 10.102,218 236,372 97,215 (139.157) 6,842,447 6,642,447 - - _ - (203,791) (203,791) - (728,000) (98,952) 629,048 6,638,656 6.638,656 - (728,000) (98,952) 629.048 S (5.526.373) 4,575,845 S 10,102,218 S (491.628) (1,737) S 489.R91 13,954,590 5,656,699 (677,087) (216,722) S 17.853.348 S 5,438,240 Continued The accompanying notes are an integral part of the financial statements. B-9 INDIAN RIVER COUNTY, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - CONTINUED ALL GOVERNMENTAL FUND TYPES Year Ended September 30, 1992 CAPITAL PROJECTS VARIANCE PAVORASLE BUDGET ACTUAL j1J! RVaRABLE} Revenues: 6,683.286 Current: 6,683,286 Taxes $ 4,961,657 $ 4,871,517 $ (900140) Licenses and permits - - - Intergovernmental 1,056,842 717,571 (339,271) Charges for services - - - Fines and forfeitures - - - Special assessments - - - Interest 483,158 423,591 (590567) Miscellaneous - - - Total revenues 6,501,657 6,012,679 (488,978) Expenditures: 6,683.286 Current: 6,683,286 General Government - Public Safety - Physical Environment - Transportation - Economic Environment - Human Services - Culture/Recreation - Debt Service: Principal - Interest - Capital Projects 12,472,816 Total expenditures 12,472,816 Excess of Revenues Over (Under) Expenditures (5,971,159) Other Financing Sources (Uses): Operating transfers in 801000 Operating transfers Out (286,424) Lease purchase proceeds - Total ether financial sources (uses) (206,424) Excess of Revenues and Other Sources Over (Under) Expenditures and Other Uses S (6,177,583) Fund Balances at Beginning of Year Residual Fund Equity Transfer In (Out) Fund Balances at End of Year B-10 5,789,530 6,683.286 5,789,530 6,683,286 223,149 6,194.308 80,000 - (286,424) - (206,424) - 16,725 S 6.194.308 9,415,495 574.934 S 10,007,154 S(18,773.403) 1,987,622 S 20,761.025 44,038,610 (216,722) S 45,809.510 The accompanying notes are an integral part of the financial statements. B-11 TOTALS (MEMORANDUM ONLY) VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) $ 44,579,154 S 46,133,709 $ 1,554,555 173,000 268,836 95,836 9,709,019 10,283,840 574,821 5,314,364 5,420,748 106,384 567,960 683,646 115,686 5,350,899 4,698,974 (651,925) 3,444,631 3,730,807 286,176 675,790 1,580,391 904,601 69.814.617 72.800,951 2,986,134 14,144,965 13,136,057 1,008,908 27,808,509 27,271,929 536,580 267,711 217,426 50,285 18,160,505 9,296,815 8,863,690 154,800 152,612 2,188 3,541,188 3,503,161 38,027 5,550,701 5,128,488 422,213 4,273,120 4,252,878 20,242 2,153,723 2,009,436 144,287 12,472,816 5.789.530 6,683,286 88,528,038 70,758.332 17.769,706 (18,713,221) 2.042,619 20,755,840 13,771,298 13,142,250 (629,048) (13,861.149) (13,226,916) 634,233 29,669 29.669 - (60,182) (54.997) 5,185 S(18,773.403) 1,987,622 S 20,761.025 44,038,610 (216,722) S 45,809.510 The accompanying notes are an integral part of the financial statements. B-11 INDIAN RIVER COUNTY, FLORIDA COMBINED STATEMENT OF REVENUES. EXPENSES AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES Year Ended September 30, 1992 The accompanying notes are an integral part of the financial statements. B-12 TOTALS INTERNAL (MEMORANDUM ENTERPRISE SERVICE ONLY) Operating Revenues: Charges for services S18,271.108 S2.369.895 $20.641,003 Operating Expenses: Personal services 6,627,713 509,317 7,137,030 Materials, supplies, services and other operating 6,229,148 965,521 7,194,669 Depreciation 4,509.806 29,491 4,539,297 Total operating expenses 17,366.667 1,504,329 18.870,996 Operating Income 904,441 865,566 1,770.007 Nonoperating Revenues (Expenses): Interest income 1,820,184 209,903 2,030,087 Operating grants 215,111 - 215,111 Gain on disposal of equipment 2,497 5,722 8,219 Interest expense (1,861,904) - (1,861,904) Bond amortization expense (55,669) - (55,669) Intangible amortization expense (23,218) - (23,218) Loss on disposal of equipment (56,847) (280) (57,127) Total nonoperating revenues (expenses) 40,154 215.345 255,499 Income Before Operating Transfers 944,595 11080,911 2425,506 Operating Transfers In 84,666 - 84,666 Net Income 1,029,261 1,080,911 2,110,172 Add: Depreciation on Fixed Assets Acquired with Contributed Capital 1.281,704 - 1.281.704 Increase in Retained Earnings 2,310,965 11080,911 3,391,876 Retained Earnings at Beginning of Year 12.806,892 991,249 13,798,141 Retained Earnings at End of Year S15.117.857 S2,072,160 S17.1190.0117 The accompanying notes are an integral part of the financial statements. B-12 INDIAN RIVER COUNTY, FLORIDA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES '.. Year Ended September 30, 1992 i -Cash Flows from Operating Activities: '`. Cash received from customers Cash payments to suppliers for goods and services 1 Cash payments to employees for services Net cash provided by operating activities ,''Cash Flows from Noncapital Financing Activities: Operating transfers in Operating grants Net cash provided by noncapital financing activities Cash Flows from Capital and Related Financing i' Activities: - Proceeds from issuance of long-term debt Principal paid on long-term debt Interest paid on long-term debt Proceeds from sale of fixed assets Purchase of fixed assets Bond paying agent fees Bond issuance costs Capital contributed by others Net cash provided by (used in) capital and related financing activities Cash Flows from Investing Activities: Purchase of special assessments Purchase of investment securities Proceeds from sale and maturities of investment securities Interest and dividends on investments Net cash used in investing activities Net Decrease in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year INTERNAL ENTERPRISE SERVICE $ 18,029,788 $ 2,382,347 (4,825,411) (1,774,758) (6,595,244) (502,210) 6,609,133 105,379 84,666 - 21S,111 - 299,777 10,101,779 (4,670,600) (2,577,318) 4,182 (18,943,280) (4,886) (226,673) 6,560,624 (9,756,172) TOTALS (MEMORANDUM ONLY) $ 20,412,135 (6,600,169) (7,097.454) 6,714,512 84,666 215,111 299,777 - 10,101,779 - (4,670,600) - (2,577,318) 8,264 12,446 (4,597) (180947,877) (4,886) (226,673) 6,560,624 3.667 (9,752,505) (660,312) - (660,312) (20,975,466) (4,687,085) (25,662,551) 16,073,091 3,037,640 19,110,731 2.336,705 387,629 2,724,334 (3,225,982) (1,261,816) (4,487,798) (6,073,244) (1,152,770) (7,226,014) 11,640,223 1,203,502 12,843,725 S 5.5 6,979 S 50,737. S 5,617,711 Continued The accompanying notes are an integral part of the financial statements. B-13 INDIAN RIVER COUNTY* FLORIDA COMBINED STATEMENT OF CASH FLOWS - CONTINUED ALL PROPRIETARY FUND TYPES Year Ended September 30, 1992 Classified As: Current assets Restricted assets Totals Reconciliation of Operating Income to Net Cash Provided by Operating Activities: Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation Amortization (Increase) decrease in assets: Accounts receivable Due from other funds Due from other governments Inventories Deposits Increase (decrease) in liabilities: Accounts payable Due to other governments Other deposits in escrow Accrued payroll Customer deposits Closure casts payable Deferred revenues Claims payable Arbitrage rebate payable Accrued compensated absences Total adjustments Net Cash Provided by Operating Activities TOTALS INTERNAL (MEMORANDUM ENTERPRISE SERVICE ONLY) $ 2,539,858 6 50,732 $ 2,590,590 3.027.121 - 3.027,121 S 50.7 S 5.617.711 S 904,441 S 865,566 S 1.770,007 4,509,806 29,491 4,539,297 (3,744) - (3,744) (534,820) 8,094 (5260726) (1,761) 7,200 5,439 162,635 (2,842) 159,793 (55,172) (8,025) (63,197) 42,975 - 42,975 178,810 50,980 229,790 2,543 - 2,543 2,221 - 2,221 (543) - (543) 79,550 - 79,550 956,581 - 956,581 54,599 - 54,599 - (8520192) (852,192) 278,000 - 278,000 33,012 7,107 40.119 5,704.692 (760,187) 4.944,505 S 6� 609,133 S 105.37 S 6.714,512 Noncash Capital and Related Financing Activities: Contributed property, plant and equipment 876.853 �, - $ 876,853 The accompanying notes are an integral part of the financial statements. B-14 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS Year Ended September 30, 1992 1. Summary of Siqnificant Accounting Policies: Indian River County, Florida (the "County") is a political subdivision of the State of Florida. It is governed by an elected Board of County Commissioners (the "Board") which is governed by state statutes and regulations. In addition to the members of the Board, there are five elected Constitutional Officers: Clerk of the Circuit Court, Sheriff, Tax Collector, Property Appraiser, and Supervisor of Elections. The Constitutional Officers maintain separate accounting records and budgets. The accompanying financial statements present the combined financial position and combined results of operations of the various fund types and account groups and the combined statement of cash flows of the proprietary fund types for the funds controlled by the Board and the County's Constitutional Officers. The Board funds a portion or, in certain instances, all of the operating budgets of the County's Constitutional Officers. The payments by the Board to fund the opera- tions of the Constitutional Officers are recorded as operating transfers out on the financial statements of the Board and as operating transfers in or charges for services on the financial statements of the Constitutional Officers. Accordingly, such amounts and the budget relating to those amounts have been eliminated in the accompanying combined financial statements. The accounting policies of the County conform to generally accepted accounting principles, as applicable to governments. The following is a summary of the more significant policies. A. Reoortinq Entitv - Generally accepted accounting principles require that finan- cial operations of governmental departments, agencies, commissions or authori- ties over which the governmental unit's elected officials have oversight respon- sibility be included in the reporting entity's financial statements. Criteria used to determine if an agency should be included in the County's report were the oversight responsibility and the scope of public service. Oversight responsibility implies that an agency is dependent on another. The manifestations of oversight responsibility are financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations, and accountability for fiscal matters. The manifestations of scope of public service are whether the activity is for the benefit of the reporting entity and/or its residents and whether the activity is conducted within the geographic boundaries of the reporting entity and is generally available to the citizens of that entity. B-15 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 1. Summary of Significant Accountinq Policies - Continued: A. Reportinq Entity - Continued - Applying the criteria above has caused the inclusion of the following entities: Indian River County Housinq Authority (IRCHA) - The IRCHA was included in the report because the Board provides the primary funding for the operations of the IRCHA. The Board maintains budgetary control over the operating costs of the IRCHA. In addition, they provide use of certain furniture and equipment to the IRCHA at no charge. Due to the proprietary nature of the IRCHA's operations, the IRCHA is reported as an enterprise fund. For budgetary control, the Board maintains a Special Revenue Fund to account for the operating costs of the IRCHA. Funding is provided from operating transfers from the Board's General Fund, Section 8 Rental Assistance Special Revenue Fund and operating grants received from the State of Florida. Since the operating costs of IRCAA have been properly reported in the enterprise fund, the Special Revenue Fund has been eliminated for the purposes of this report. Appropriations from the Board totaled $89,852 and the related actual operating costs totaled $84,666 for the fiscal year. The IRCHA cannot overspend appropriations in total. Solid Waste Disposal District (SWDD) - The SWDD was included in the report because the Board sits as the Board for the SWDD and sets the non ad valorem assessment fees for the SWDD. The SWDD is included as an enterprise fund. North Indian River County Fire District. West Indian River County Fire District. and South Indian River County Fire District - The fire districts were included in the report because the Board sits as the Board for each fire district, approves the budget and sets the millage rate for each fire district, and desig- nates the management of each fire district. The fire districts are reported as special revenue funds. The following entities, which meet the scope of public service criteria, have been excluded from this report: Indian River County School Board District (IRCSBD) - The IRCSBD has a separately elected board, maintains its own financial records and reports to the Florida Department of Education. Indian River County Hospital (IRCH) - The IRCH has a separately elected board, maintains its own financial records, can issue debt with the approval of its board or the voters, and issues its own report. Indian River County Mosquito Control District (IRCMCD) - The IRCMCD has a sepa- rately elected board, maintains its own financial records, and issues its own report. Indian River County Health Department (IRCHD) - The Board does provide some funds for the operations of the IRCHD, sets part of the fee schedule, and must provide the facilities for the IRCHD. However, the Florida Department of Health and Rehabilitation appoints the management of the IRCHD, maintains the financial records, and includes the IRCHD in its own report. The funds and facilities provided by the Board are mandated by the Florida State Statutes. B-16 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 1. Summary of Significant Accounting Policies - Continued: B. Fund Accountinq - The accounts of the County are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures, or expenses, as appropriate. Government resources are allo- cated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are con- trolled. The purpose of the County's various funds and account groups is as follows: Governmental Funds General Fund - The General Fund is the general operating fund of the County. It is used to account for all financial resources, except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specified purposes. Debt Service Funds - Debt Service Funds are used to account for the accu- mulation of resources for, and the payment of, general long-term debt principal, interest and related costs. Capital Proiects Funds - Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by the proprietary funds). Proprietary Funds Enterprise Funds - Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. B-17 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 1. Summary of Significant Accountina Policies - Continued: Proarietary Funds - Continued Internal Service Funds - The Fleet Management and Self Insurance Internal Service Funds are used to account for the financing of goods and services provided to other departments or agencies of the County, on a cost - reimbursement basis. Fiduciary Funds Trust and AQencv Funds - Trust and Agency Funds are used to account for assets held by the County in a trustee capacity or as an agent for indi- viduals, private organizations, other governments, and/or other funds. These include Agency Funds and an Expendable Trust Fund. Account Groups General Fixed Assets - To account for all fixed assets of the County, except fixed assets of proprietary funds. General Lona -Term Debt - To account for all the outstanding principal balances of general and special obligation bonds, notes, capital leases and compensated absences of the County, except long-term obligations of proprietary funds. C. Measurement Focus Governmental Fund Tvoes, - General, Special Revenue, Debt Service and Capital Projects Funds are accounted for on a "spending" or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on the balance sheets. Accordingly, the reported unreserved fund balance (net current assets) is considered a measure of available, spend- able or appropriable resources. Governmental Fund Type operating statements present increases (revenues and other financing sources) and decreases (expendi- tures and other financing uses) in net current assets. Pronrietary Fund Tvves - The Enterprise and Internal Service Funds are accounted for on an "income determination• measurement focus. Accordingly, all assets and liabilities are included on the balance sheet, and the reported fund equity (total reported assets less total reported liabilities) provides an indication of the economic net worth of the fund. Operating statements for the Proprietary Fund Types report increases (revenues) and decreases (expenses) in total eco- nomic net worth. Fiduciary Fund Tvaes - The Expendable Trust Fund is accounted for in the same manner as Governmental Funds. The Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. B-18 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 1. Summary of Significant Accounting Policies - Continued: C. Measurement Focus - Continued Account Grouos - The General Fixed Assets Account Group and the General Long - Term Debt Account Group are concerned only with the measurement of financial position. They are not involved with the measurement of results of opera- tions. Fixed assets, which are not used in Proprietary Fund operations, are accounted for in the General Fixed Assets Account Group. Depreciation is not charged on the general fixed assets. Long-term debts, which are not intended to be financed through the Proprietary Funds, are accounted for in the General Long -Ter■ Debt Account Group. D. Basis of Accountina - Basis of accounting refers to when revenues and expendi- tures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. All Governmental Funds are accounted for using the modified accrual basis of accounting. Under the modified accrual basis, revenues are recognized when they become measurable and available as net current assets. Primary revenues, including taxes, intergovernmental revenues, charges for services, rents and interest are treated as susceptible to accrual under the modified accrual basis. Other revenue sources are not considered measurable and available, and are not treated as susceptible to accrual. Expenditures are generally recog- nized under the modified accrual basis of accounting when the related fund liability is incurred. An exception to this general rule is that principal and interest on general long-term debt is recognized when due. Proprietary Funds - The Enterprise and the Internal Service Funds are accounted for using the accrual basis of accounting. Under this method, revenues are recognized when they are earned and expenses are recognized when they are incurred. Unbilled utility receivables are recorded at year end. Fiduciary Funds - The Expendable Trust Fund and the Agency Funds are accounted for on the modified accrual basis. E. Cash and Investments - The County maintains a cash and investment pool that is available for use by all funds. This pool has deposits, and all highly liquid investments (including restricted assets) with maturities of ninety days or less when purchased. In addition longer-term investments are held by several of the County's funds. Pooled cash is classified as "Cash and Cash Equivalents" and pooled investments are combined with other separate investments and classified as "Investments" in the financial statements. Cash and cash equivalents of Constitutional Officers are maintained in separate accounts, but have been combined with the Board's cash and cash equivalents for financial statement purposes. B-19 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 1. Summary of Siqnificant Accounting Policies - Continued: F. Investments - Investments consist of Repurchase Agreements, U.S. Treasury Securities, U.S. Government Agency Securities, and the Local Government Surplus Funds Trust Fund that are recorded at cost, which approximates market value. Investments held in the deferred compensation plan are recorded at market. G. Allowance for Doubtful Accounts - The County provides an allowance for water and sewer accounts receivable that may become uncollectible. At September 30, 1992, this allowance was $23,000, The Housing Authority provides an allowance for rents receivable which may become uncollectible which amounted to $7,592 at September 30, 1992. No other allowances for uncollectible accounts are main- tained since other fund accounts receivable are considered collectible as reported at September 30, 1992. H. Inventories - Inventories are valued at cost, which approximates market, using the "first -in, first -out" method of accounting. The costs of General Fund and Expendable Trust Fund inventories are recorded as expenditures when consumed rather than when purchased. Inventory of the Clerk of the Circuit Court, included in the Combined Agency Funds, represents documentary stamps on consign- ment from the State of Florida. Stamps are carried at cost, which is their face value. I. Prooertv. Plant and Equipment (1) Property, plant and equipment purchased in the Governmental Fund Types are recorded as capital outlay expenditures at the time of purchase. Such assets are capitalized at cost in the General Fixed Assets Account Group, except for certain improvements other than buildings ("infrastructure") such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems. Donated and confiscated assets are recorded in the general fixed assets at their fair market value at the time received. No depreciation has been provided on general fixed assets. The Hoard holds legal title for the general fixed assets used in the operations of the Hoard, Property Appraiser, Tax Collector, Supervisor of Elections, and Clerk of the Circuit Court and is accountable for them under Florida law. The Sheriff is accountable for and thus maintains general fixed asset records per?:wining only to equipment used in his operations. These assets have been combined with the Hoard's general fixed assets in the General Fixed Assets Account Group. H-20 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 1. Summary of Sianificant Accountina Policies - Continued: I. Property. Plant and Bouipment - Continued (2) Property, plant and equipment of the Proprietary Fund types are recorded at cost. Donated property, plant and equipment are capitalized at their fair market value at the time received. Depreciation is provided using the straight-line method over the estimated useful lives of the various classes of depreciable assets. The estimated useful lives of the various classes of depreciable assets are as follows: Assets Years Building and improvements 25 - 40 Machinery and equipment 3 - 10 Utility distribution systems 25 - 50 J. Capitalization of interest - Interest costs related to bond issues are capital- ized during the construction period. These costs are netted against applicable interest earnings on construction fund investments. During the current period, the Housing Authority, the Solid Waste Disposal District and the Water and Sewer system Enterprise Punas incurred interest expense during the construction period totaling $845,624. Related interest earnings on construction fund investments totaled $448.003 for net capitalized interest of $397,621. IL%--A - Ho„a I --.,e oo-t- --a ie9-i fee- --soon-eea +ste crae Issuance of 11roprielary Funk revenue bonds are amortized over the life of the bonds using the straight-line method of accounting. L. Unamortized Bond Discount - Bond discount associated with the issuance of Proprietary Fund revenue bonds are amortized according to the interest method, which results in a constant rate of interest being applied to the amount out- standing at any given time. For financial reporting, unamortized bond discount is netted against applicable long-term debt. M. Intangible Assets - Land use rights were purchased by the Water and Sewer System Fund from the Golf Course Fund for irrigating the golf course with treated effluent. Leachate disposal rights were purchased by the Solid Waste Disposal Fund from the Water and Sewer System Fund for removal and transporation of leachate from the County landfill to the sewer system. These assets are being amortized using the straight-line method over the estimated useful life of 20 years. B-21 INDIAN RIVER COUNTY# FLORIDA NOTES TO FINANCIAL STATEN ENT S - CONTINUED Year Ended September 34, 1992 1. Summary of Significant Accounting Policies - Continued: N. Deferred Revenues - Deferred revenues reported in applicable Governmental Fund Types represent unearned revenues or revenues which are measurable but not available and, in accordance with the modified accrual basis of accounting, are reported as deferred revenues. The deferred revenues will be recognized as revenue in the fiscal year they are earned or become available. O. Accrued Compensated Absences - The County records compensated absences in the Governmental Fund Types as an expenditure for the amount accrued during the year that would normally be liquidated with expendable available financial resources. The remainder of the liability is reported in the General Long -Term Debt Account Group. Proprietary Fund Types accrue compensated absences in the period they are earned. P. Obligation for Bond Arbitrage Rebate - Pursuant to Section 148(f) of the U.S. Internal Revenue Code# the County must rebate to the United States Government the excess of interest earned from the investment of certain debt proceeds and pledged revenues over the yield rate of the applicable debt. This payment is typically due five years after original issuance of the debt. Amounts reflected in the balance sheet represent the latest available calculations of the County's accumulated rebate liability as of the balance sheet date. Rebate liability associated with general government debt is reported in the General Long -Term Debt Account Group until the year in which it must be paid from current resources, at which time it is reflected as a fund liability. Rebate liability for enterprise debt is reported in the applicable enterprise fund. Q. Landfill Closure Costs - Under the terms of current state and federal regula- tions, the Solid Waste Disposal District (SWDD) is required to place a final cover on closed landfill areas, and to perform certain monitoring and maintenance functions for a period of up to thirty years after closure. The SWDD recognizes these costs of closure and post -closure maintenance over the active life of each landfill area, based on landfill capacity used during the period. Required obligations for closure and post -closure costs are recognized in the Solid Waste Disposal District Enterprise Fund. R. Contributions - The contributions accounted for in the Proprietary Fund Types represent contributions from other funds, State and Federal Aid programs, and impact fees charged to new customers for their anticipated burden on the existing system. Depreciation expense on contributed fixed assets is reflected in the statement of revenues, expenses and changes in retained earnings. Depreciation on contributed fixed assets is transferrred to the related contribution accounts (reducing contributions) instead of retained earnings. B-22 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 1. Summary of Significant Accounting Policies - Continued: S. Budgets and Budaetary Accountinq - The County uses the following procedures in establishing the budgetary data reflected in the financial statements: (1) The Constitutional Officers submit, at various times, to the Board and to certain divisions within the Department of Revenue, State of Florida, a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. (2) The Department of Revenue, State of Florida, has the final authority on the operating budgets for the Tax Collector and Property Appraiser included in the General Fund. (3) on or before July 15 of each year, the Director of the Office of Management and Budget, as the Board's designated budget officer, submits to the Board a tentative budget for the ensuing fiscal year. The tenta- tive budget includes proposed expenditures and the means of financing them. The Board then holds workshops to review the tentative budget by Fund on an object level. (4) During September, public hearings are held pursuant to Section 200.065 of the Florida Statutes in order for the Board to receive public input on the tentative budget. At the end of the last public hearing, the Board enacts ordinances to legally adopt the budgets at the fund level for all govern- mental fund types. The budgets legally adopted by the Board set forth the anticipated revenues by source and the appropriations by function. (5) Formal budgetary integration of an object level is used as a management control device for the governmental funds of the County. Management is authorized to transfer budgeted amounts between objects and departments in any fund as long as management does not exceed the total appropriations of a fund. Board approval to amend the budget is only required when unanticipated revenues are received that management wishes to have appropriated thereby increasing the total appropriations of a fund. B-23 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 1. Summary of Significant Accountinq Policies - Continued: S. Budgets and BudoetarV Accountinq - Continued (6) Revisions made to the original budget by the Board for unanticipated revenues were as follows: B-24 Original Total Revised Budqet Revisions Budqet General Fund $42,786,468 $(1,404,673) $41,381,795 Special Revenue Funds: Road Improvement Fees 5,773,665 7,182 5,780,847 Police Academy 55,000 40,000 95,000 Section 8 - Rental Assistance 1,195,395 153,055 1,348,450 Secondary Road Construction 1,472,500 50,412 1,522,912 Transportation 7,428,058 484,129 7,912,187 Special Law Enforcement 163,620 (15,992) 167,628 South County Fire District 5,937,505 378,741 6,316,246 North County Fire District 1,123,727 63,795 1,187,522 West County Fire District 204,904 1,506 206,410 Tourist Development 314,500 127,000 441,500 Petition Paving 2,299,300 12,696 2,311,996 911 Surcharge 228,800 72,197 300,997 Street Lighting Districts 155,060 3,955 159,015 Debt Service Funds: Route 60 Sewer Assessment Bonds 378,036 1,605,501 1,983,537 North County Sewer Assessment Bonds 1,038,538 150,000 1,188,538 Capital Projects Funds: Treasure Shores Park 80,000 270,000 350,000 Optional Sales Tax 1,483,500 730,385 2,213,885 Library Construction 595,355 (286,424) 308,931 (7) Budgets for the governmental fund types are adopted on a basis consistent with generally accepted accounting principles. (8) Appropriations for the County lapse at the close of the fiscal year. B-24 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 1. Summary of Sianificant Accountina Policies - Continued: T. Total Columns on Combined Statements - Overview - Total columns on the combined statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable in a consolidation. Interfund eliminations have not been made in the aggregation of these data. 2. Cash and Investments: The County maintains a cash and investment pool that is available for use by all funds except those whose cash and investments must be segregated due to bond cove- nants or other legal restrictions. Deposits - At September 30, 1992, the carrying amount of the County's deposits was $6,083,317 made up of demand deposits, certificates of deposit, money market accounts, savings accounts and petty cash. All deposits with financial institutions were 100% insured by federal depository insurance or by collateral pursuant to the Public Depository Security Act of the State of Florida. Various deposits were earning interest from 2.85-9.7%. Investments - Florida Statutes, the Board of County Commissioners' Investment Policy, and various bond covenants authorize investments in certificates of deposit, money market accounts, savings accounts, repurchase agreements, the Local Government Surplus Funds Trust Fund administered by the Florida State Board of Administration, obligations of the U.S. Government, and government agencies unconditionally guaran- teed by the U.S. Government. Money market accounts, savings accounts, and bank balances are reported as cash and cash equivalents above. The County invested in only these types of instruments during the fiscal year. B-25 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 I 2. Cash and Investments - Continued: i Investments - Continued - The County's investments are categorized below to give an Indication of the level of risk assumed at year end. Category 1, defined as insured or registered or for which the securities are held by the County or its agent in the County's name. Category 2, defined as uninsured and unregistered, with securities held by the counterporty's trust department in the County's name. j Schedule of Investments at September 30, 1992 i Category Carrying Market 1 2 Amount Value I Repurchase Agreements $ $ 66,000 S 66,000 $ 66,000 ' Certificates of Deposit 13,928 - 13,928 13,928 j U.S. Treasury Securities 8,495,646 - 8,495,646 8,854,669 U.S. Government Agency ? Securities 47,763,631 - 47,763.631 48.498,347 t S56,273,205 S 66.000 56,339,205 57,432,944 ! Local Government Surplus Funds Trust Fund 16,439,159 16,439,159 i Total Investments 572.778,364 S73,872,103 i In addition to the cash and temporary cash investments listed above, employee i` deferred compensation plan (see Note 10) cash and temporary cash investments were ` $1,116,050, which are carried at market value. These investments are held separately from those of other County funds. As prescribed by the plan documents, the investment portfolios include investment obligations of the U.S. Government, mutual funds and money market accounts, and are held by the plan administrators but not in the County's name. 8-26 r INDIAN RIVER COUNTY, FLORIDA CONTINUED NOTES TO FINANCIAL tMATEMENTS Year Ended September 30, 1992 3. Provertv Tax Revenues. Property tax revenues recognized for the 1991-92 fiscal year were levied in October, 1991. Virtually all unpaid taxes are collected via the sale of tax certificates prior to fiscal year end, therefore, there were no material taxes receivable at fiscal year end. Key dates In the property tax cycle (latest date where appropriate) are as follows: Revenues for Fiscal Year Endinq Sentember 30, 1992 Date of lien January 1, 1991 Assessment roll certified October 10, 1991 Property taxes levied October 31, 1991 Beginning of fiscal year for which taxes have been levied Tax bills rendered Property taxes payable: maximum discount Delinquent Tax certificates sold on unpaid property taxes B-27 October 1, 1991 October 31, 1991 November 30, 1991 April 1, 1992 May 28# 1992 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 4. Propertv, Plant and Equipment: A. General Fixed Assets - A summary of changes in the General Fixed Assets Account Group follows: Total Buildings Property, and Construction Plant and Land Improvements Equipment In Proqress Equipment Balance at October 1, 1991 $17,068,084 $30,692,697 $18,077,021 $ 779,947 $66,617,749 Additions 2,546,255 111,855 1,004,075 3,300,541 6,964,726 Deletions - - 44,052 2,648,785 2.692,837 Balance at Septem- ber 30, 1992 $19,616,339 530.804.552 519.037.044 S 1.431,703 S70,889,638 B. Proprietary Fund TVDe Fixed Assets - A summary of proprietary fund type property, plant and equipment follows: Land Buildings, distribution systems and improvements Equipment Construction in progress Total Property, Plant and Equipment Less: Accumulated depreciation Total B-28 Internal Enterprise Service $ 6,127,638 $ - 76,965,469 113,977 8,491,204 171,594 20,284,804 - 111,869,115 285,571 (17,887,961) (224,033) S 93,981.154 S 61.538 INDIAN RIVER COUNTY, FLORIDA t=-"- NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 5. Restricted Cash and Cash Equivalents and Investments: Various bond covenants, resolutions and state regulations require that the County restrict cash and cash equivalents and investments within the Enterprise Funds. Restricted cash and cash equivalents and investments are as follows: Solid Waste Water Disposal Golf and Sewer Housing District Course System Authority Total Sinking Funds $1,251,100 $1,285,321 $3,518,557 $ 11,951 $ 6,066,929 Renewal i Replace- ment and Capital Projects 1,541,893 1,376,240 5,187,216 126,893 8,232,242 Customer Deposits 26,200 - 723,909 12,344 762,453 Capital Construction 1,987,486 - - 72,348 2,059,834 Closure i Mainte- nance Costs 3,836,675 - - - 3,836,675 Arbitrage Rebate Payable 278,000 - - 278,000 58.921.354 $2.661.561 $9,429,682 4223.536 521,236,133 6. Payable from Restricted Assets: Liabilities payable from the County's Enterprise Funds restricted assets listed above are as follows: Solid Waste Water Disposal Golf and Sewer Housing District Course System Authority Total Accounts payable $ - $ 554,723 S 849,239 $176,993 $ 1,580,955 Retainage payable - 259,342 374,380 - 633,722 Arbitage rebate payable 278,000 - - - 278,000 Accrued interest payable 151,350 49,410 476,032 4,540 681,332 Bonds payable (current portion) 480,000 50,000 242,800 165,000 937,800 Closure costs payable 2,605,675 - - - 2,605,675 Customer deposits 26,200 - 723,837 10,797 760.834 $3,541,225 S 913,475 $2,666,288 $357,330 S7,478,318 B-29 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 7. Interfund Accounts: The following is a summary of interfund receivables and payables as of September 30, 1992 which includes Due To/Due From and Advance To/Advance From Other Funds. Fund Receivable Pavable General Fund $1,684,611 $ - Special Revenue Funds: Policy Academy Court Facilities South County Fire District North County Fire District Petition Paving West County Fire District Drug Abuse Criminal Justice Debt Service Funds: Library Bonds North County Sewer Assessment Bonds (recorded as an Advance From Other Funds) Enterprise Funds: Solid Waste Disposal District Water and Sewer System (recorded as an Advance to Other Funds) Agency Funds: Clerk Tax Collector Totals B-30 5,000 - 4,228 - 6,500 - 2,659 - 28,736 1,500,000 9 739 - 10,985 10,985 1,946 - 607,500 1,761 - 607,500 - 79,704 156,485 S2,354,674 $2,354,674 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 S. Lonq-Term Debt: A. Enterprise Fund Revenue Bonds - The County has adopted resolutions for bonds payable that provide for various covenants. These covenants are listed below for each bond payable. Solid Waste Disposal Svstem Revenue Bonds, Series 1988 (1) Pledqe of Revenue - The Series 1988 bonds are payable from and collateral- ized by a lien on net revenues of the system, including the proceeds derived from the collection of disposal charges which are annual assess- ment charges against assessable property for the disposal of solid waste. (2) Establishment of various Accounts a. Operating account to pay all operating and maintenance costs of the system. b. Sinking Fund account to pay principal and interest payments coming due during the current fiscal year. c. Reserve account to accumulate an amount equal to the maximum amount of principal and interest coming due in any ensuing fiscal year. d. Renewal and Replacement Fund and capital projects account to pay for the costs of enlargements, replacements or emergency repairs to the system. The amounts to be maintained in these accounts are determined by consulting engineers. The amounts in these accounts are restricted by the bond resolution. (3) Other Covenants - The resolution provides for several additional covenants such as required revenue rates, minimum insurance levels, adoption of annual budget, and certain required engineering reports. (4) Bonds Issued - At September 30, 1992, the revenue bonds consisted of the following: Outstanding at Rates and Original September 30, Description Date Maturity Issue 1992 1988 Solid Waste Disposal System 5.25%-7.4% Revenue Bonds 6/1 and 12/1 6/1/02 $8,240,000 $ 6,555,000 Less: Current portion 480.000 Long -Term Portion S 6,075,000 B-31 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 S. Lona -Term Debt - Continued: Solid Waste Disposal SVstem Revenue Bonds, Series 1988 - Continued (5) optional Redemption - The revenue bonds maturing on or after June 1, 1997 are subject to redemption prior to maturity, at the option of the County i on and after June 1, 1996, in whole at any time or in part on any interest c payment date at par plus accrued interest and plus a premium ranging between 0% and 21 depending on the year of redemption. ` 1- t Recreational (Golf Course) Revenue Bonds, Series 1985 and 1991 t (1) Pledae of Revenue - The revenue bonds are collateralized by a lien on the E net revenues derived from the operations of the project and racetrack and f jai alai fronton funds accruing annually to the County. i (2) Establishment of Various Accounts a. Operating accounts to reflect all transactions which relate to the project. b. Sinking Fund account to pay principal and interest coming due during the current fiscal year. The amounts in this account are restricted by the band resolution. c. Reserve Fund account to accumulate an amount equal to the maximum amount of principal and interest coming due in any ensuing fiscal year. This account may be established at the option of the Board of County Commissioners. The amounts in this account are restricted by the bond resolution. d. Renewal and Replacement Fund account to pay for the costs of exten- sions, enlargements, additions, replacements or emergency repairs to the system. The amounts deposited into this account are determined by the County Administrator. The amounts in this account will be restricted by the bond resolution. B-32 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 8. Lona -Term Debt - Continued: Recreational (Golf Course) Revenue Bonds, Series 1985 and 1991 - Continued (3) Other Covenants a. The proceeds of these bond issues are to finance the construction of a public golf course and related clubhouse facility, and interest on the bonds for the first three years. b. The bond resolution provides for additional covenants such as annual audit requirement and minimum insurance levels. (4) At September 30, 1992, these revenue bonds consisted of the following: Outstanding at Rates and Original September 30, Dates Maturity Issue 1992 1985 Recreational 6.401-7.60% Revenue Bonds 3/1 and 9/1 9/1/15 $2,720,000 S 2,635,000 1991 Recreational 5.35%-6.875% Revenue Bonds 3/1 and 9/1 9/1/16 $6,015,000 6,015,000 Less: Current portion 50,000 Unamortized discount 188,413 Long -Term Portion S 8.411.587 (5) Optional Redemption a. The Revenue Bonds, Series 1985 maturing on or after September 1, 1996 are subject to redemption prior to maturity, at the option of the County on and after September 1, 1995, in whole at any time or in part on any interest payment date at par plus accrued interest and plus a premium ranging between 01 and 21 depending on the year of redemption. b. The Revenue Bonds, Series 1991 maturing on or after September 1, 2000 are subject to redemption prior to maturity, at the option of the County on and after September 1, 1999, in whole at any time or in part on any interest payment date at par plus accrued interest and plus a premium ranging between 01 and 2% depending on the year of redemption. B-33 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 6. Lona -Term Debt - Continued: Water and Sewer Revenue Bonds, Series 1986 and 1986A (1) Pledge of Revenues - The revenue bonds are collateralized by a pledge of all net revenues of the system and impact fees. (2) Establishment of Various Accounts a. Revenue Fund account to pay all operating and maintenance costs of the system. b. Sinking Fund account to pay principal and interest coming due during the current fiscal year. The amounts in this account are restricted by the bond resolution. c. Reserve Fund account to accumulate an amount equal to the maximum amount of principal and interest coming due in any ensuing fiscal year. An initial deposit was made from bond proceeds with the remainder to be derived from operating revenues. When the maximum amount is obtained, no further deposits are necessary. The amounts in this account are restricted by the bond resolution. d. Renewal and Replacement account to pay the cost of extensions, enlargements, improvements or additions to or the replacement of capital assets of the Water and Sewer System, and for emergency repairs. The County is required to deposit 5% of the gross revenues of the system for the preceding year on an annual basis into this account. (3) Bonds Issued - At September 30, 1992, revenue bonds consisted of the following: 9/1 2029 450,000 447,400 Less: Current portion 92,800 Long -Term Portion S 9.469,600 (4) Optional Redemption - The revenue bonds are subject to redemption prior to maturity, at the option of the County, as a whole, on any date, upon payment of the outstanding principal amount thereof, together with accrued Interest to the date fixed for redemption. 8-34 Outstanding at Rates and Original September 30, Description Dates Maturity Issue 1992 Water and Sewer Revenue Bonds: Series 1986 5% 9/1 2029 $9,200,000 $ 9,115,000 Series 1986A 7% 9/1 2029 450,000 447,400 Less: Current portion 92,800 Long -Term Portion S 9.469,600 (4) Optional Redemption - The revenue bonds are subject to redemption prior to maturity, at the option of the County, as a whole, on any date, upon payment of the outstanding principal amount thereof, together with accrued Interest to the date fixed for redemption. 8-34 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 S. Lona -Term Debt - Continued: Water and Sewer Revenue Refunding Bonds. Series 1989 (1) Pledge of Revenues - The revenue bonds are collateralized by a pledge of all net revenues of the system and impact fees. However, the Series 1989 is subordinate to the Water and Sewer Revenue Bonds, Series 1986 and 1986A. (2) Establishment of Various Accounts a. Revenue Fund account to pay all operating and maintenance costs of the system. b. Sinking Fund account to pay principal and interest coming due during the current fiscal year. The amounts in this account are restricted by the bond resolution. c. Reserve Fund account to accumulate an amount equal to the maximum amount of principal and interest coming due in any ensuing fiscal year. An initial deposit was made from bond proceeds with the remainder to be derived from operating revenues. When the maximum amount is obtained, no further deposits are necessary. The amounts in this account are restricted by the bond resolution. (3) Bonds Issued - At September 30, 1992, revenue bonds consisted of the following: Outstanding at Rates and Original September 30, Description Dates Maturity Issue 1992 Water and Sewer Revenue Refunding 6.70%-7.25% Bonds, Series 1989 5/1 and 11/1 2019 $6,510,000 $ 6,300,000 Less: Current portion 80,000 Unamortized bond discount 28.001 Long -Term Portion S 6191,999 (4) Optional Redemption - The revenue bonds maturing on or after May 1, 1999 are subject to redemption prior to maturity, at the option of the County on and after May 1, 1998, in whole at any time or in part on any interest payment date at par plus accrued interest and plus a premium ranging between 0% and 1}% depending on the year of redemption. B-35 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 8. Lana -Term Debt - Continued: Water and Sewer Revenue Bonds, Series 1991 (1) Pledge of Revenues - The revenue bonds are collateralized by a pledge of all net revenues of the system and impact fees. However, the Series 1991 is subordinate to the Water and Sewer Revenue Bonds, Series 1986 and 1986A, and is on a parity with the Water and Sewer Revenue Refunding Bonds, Series 1989. (2) Establishment of Various Accounts i a. Revenue Fund account to pay all operating and maintenance costs of the E system. i b. Sinking Fund account to pay principal and interest coming due during the current fiscal year. The amounts in this account are restricted by the bond resolution. c. Reserve Fund account to accumulate an amount equal to the maximum amount of principal and interest coming due in any ensuing fiscal year. An initial deposit was made from bond proceeds with the i remainder to be derived from operating revenues. When the maximum amount is obtained, no further deposits are necessary. The amounts in i this account are restricted by the bond resolution. (3) Bands Issued - At September 30, 1992, revenue bonds consisted of the following: Outstanding at 1 Rates and Original September 30, Description Dates Maturity Issue 1992 Water and Sewer Revenue Bonds, 4.85%-6.70% Series 1991 5/1 and 11/1 2016 $9,205,000 $ 9,205,000 Less: Current portion 70,000 Unamortized bond discount 224,954 Long -Term portion S-8,910,046 (4) Optional Redemption - The revenue bonds maturing on or after May 1, 2002 are subject to redemption prior to maturity, at the option of the County on and after May 1, 2001, in whole at any time or in part on any interest payment date at par plus accrued interest and plus a premium ranging between 01 and 2% depending on the year of redemption. B-36 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 8. Lonq-Term Debt - Continued: Housinq Authority Revenue Bonds On April 1, 1986, August 23, 1988 and July 16, 1991, the Housing Authority adopted resolutions authorizing the issuance of revenue bonds payable to the U.S. Department of Agriculture, Farmers Home Administration, for the purpose of financing a part of the cost of acquiring, erecting and constructing low -rent, multi -family housing facilities (Victory Park Apartments - Phase I and Phase II and Orangewood Park Apartments), including the repayment of certain notes payable to the State of Florida for the acquisition of land. The bond and interest thereon are payable solely from and collateralized by a prior lien upon and a pledge of the gross revenues to be derived from the projects. The revenue bond resolution provides for the following: (1) The revenue bond obligation consists of: Long -Term Portion Original Balance Revenue Outstanding Bond September 30, Commitment 1992 $1,908,000 Interest 1,908,000 Rate Description and Dates Indian River It per annum on County Housing the unpaid Authority balance, payable Revenue Bonds: September 1 each year Victory Park Phase I Victory Park Phase II Orangewood Park Apartments Leas: Current portion Long -Term Portion Original Balance Revenue Outstanding Bond September 30, Commitment 1992 $1,908,000 $ 1,694,000 1,908,000 1,748,000 2,006,400 2,006,400 55.822.400 5,448,400 165,000 9 5.283.400 (2) Optional Redemption - Each revenue bond is redeemable at the option of the Housing Authority at par plus accrued interest and plus a premium ranging between 01 and 5%, depending on the year of redemption and the holder of the bond at the time of redemption. The Housing Authority may redeem, in whole or in part, at any time, the principal portion of each revenue bond on any interest payment date, at the price of par plus accrued interest, without premium if the bond is held by the U.S. Department of Agriculture, Farmers Home Administration. B-37 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 S. Lonq-Term Debt - Continued: Housinq Authoritv Revenue Bonds - Continued (3) The revenue bond resolutions provide for the following: • The revenue bonds do not constitute a lien upon the project of any part thereof or upon any other property of the Housing Authority or a pledge of the full faith and credit of the Housing Authority. The Housing Authority collects fees, rentals and other charges for the use of the facilities of the project, and out of such funds pays the principal of and interest on the land, the necessary expenses of operating and maintenance and all reserve and sinking fund require- ments. Fees, rentals and other charges will not be reduced so as to be insufficient to provide funds for such purposes. • Establishment of Various Accounts - The Loan and Grant Resolution provides for the creation and establishment of the following accounts, which are to be deposited with a depository in the State of Florida, which is a member of the Federal Deposit Insurance Corporation and which is eligible under the laws of the State of Florida to receive public funds: a. Revenue Account to deposit all gross revenues and provide for payment of costs of operation and maintenance of the project. b. Bond Service Accounts: • Interest Account to deposit monthly from Revenue Account 1/12 of all interest coming due on the next interest payment date. • Principal Account to deposit monthly from Revenue Account 1/12 of the principal amount which will become due on such annual maturity date. • Renewal, Replacement and Improvement Account to deposit from the Revenue Account $7,357 per month. In addition, at the end of each fiscal year, all excess funds remaining in the Revenue Account are deposited in the Renewal Replacement and Improvement Account until the amount on deposit equals $882,800. B-38 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 6. Lonq-Term Debt - Continued: Housinq Authoritv Revenue Bonds - Continued c. Investment Restrictions - Monies in any account created in the resolution may be invested in authorized investments which mature not later than 15 days prior to the dates on which the monies will be needed for the purpose of such fund. Authorized investments as specified by the resolution are as follows: • Direct obligations of the U.S. Government • Bonds, debentures or notes backed by the full faith and credit of the U.S. Government The Housing Authority did not meet all of the required monthly deposits as set forth in the resolution due to inconsistencies between FmHA requirements and the resolutions. Annual Debt Service Payments - Enterprise Fund Bonds Pavable - The annual debt service payments to amortize the bonds payable outstanding at September 30, 1992 are as follows: B-39 Yater aolid Su Mt• Yater and 6ewnd r Diapoul Recreational Siseal Year Rover Revenue Rystla (Golf Course) Ming Revenue Refunding Revenue Revenue Housing September 30, bonds bonds Bonds bond■ Authority Total 1993 8 1.231.111 1 543.820 t 931.050 6 662.919 6 219.684 i 3.571.314 1994 1.352.220 543.240 934.770 764.519 219,834 3,114,603 1995 1.352,564 517.310 937,640 764,381 220.164 3.822.059 1996 1,351. eat 545,613 9]7,715 763.316 219,474 3.817,446 1997 1,350.010 543.512 938.3SS 761,361 219.774 3:.013,012 1998-1002 6.754,325 2.726,181 4,692.910 3,$23.170 1.097.770 19.094,313 2003-2007 6.763.410 2.721,3:0 - 3,81.0.681 1.097.420 14.101.341 2001-2012 6.763.707 2.724.910 - 3,814,438 1.095.220 14.391,275 2013-2017 5.915.055 2,724,930 - 2.811.239 1.096,470 12.617.691 2016-2022 2r 198.776 1.095.630 - - 736.030 4.730.436 2023-2027 2.697.920 - - - 75,144 2.973.064 2021-2032 11159.988 1.139.8te 'orale 39.861,154 14,716,533 9,374,940 17,963,974 6.296,984 88.2131585 4251 Amounts representing interest 21.093.754 8.416.533 2.119.940 9.313.974 94/.584 42.492.785 Sotal Bonds Sayable 18!767.400 6.300.000 6,555,000 8.650.000 5.448,400 45.720,800 4u. Current portion 162,800 BD,000 480.000 50100D 165,000 937.800 uMmortiud bond discount 224.954 819.379.646 28.001 6 6.191.999 A 6.075.000 11t.413 9 9.411.587 65.213.400 441.368 246.341.632 B-39 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 S. Lona -Term Debt - Continued: 174,025 - 67,475 106,550 B. Chances in General Lona -Term Debt - A summary of changes in general long-term debt follows: Sheriff 152,250 21,998 42,064 132,184 Balance 352,562 - Balance 289,817 October 1, 678,857 29,669 September 30, 534.196 1991 Additions Deletions 1992 Accrued Compensated Board 125.791 - - Absences: Bonds Payable: Board $ 687,306 $ 204,222 S - $ 891,528 Clerk of Court 48,572 15,478 7,021 57,029 Sheriff 533,584 234,306 - 767,890 Tax Collector 30,476 4,091 - 34,567 Property Appraiser 32,797 - 2,068 30,729 Supervisor of 2987 Series 3,150,000 - 145,000 Elections 2,294 188 - 2,482 1,335,029 458,285 91089 1.784,225 Capital Leases: Board 174,025 - 67,475 106,550 Clerk of Court - 7,671 2,026 5,645 Sheriff 152,250 21,998 42,064 132,184 Property Appraiser 352,562 - 62,765 289,817 678,857 29,669 174,330 534.196 Arbitrage Rebate Payable: Board 125.791 - - 125,791 Bonds Payable: Refunding and Improvement Revenue Bonds - 1985 Series 8,275,000 - 330,000 7,945,000 Capital Improvement Revenue Bonds - 2987 Series 3,150,000 - 145,000 310058000 General Obligation Bonds - 1989 Series 3,760,000 - 1,175,000 2,585,000 Special Assessment Bonds 8.473,548 - 2.428.548 6,045.000 23.658.548 - 4.078.548 19,580,000 Totals $25,798,225 L__48795_4 $4.261.967 $22.024,212 B-40 INDIAN RIVER COUNTY, FLORIDA �- NOTES TO FINANCIAL STATEMENTS - CONTINUED ` Year Ended September 30, 1992 8. Lona -Term Debt - Continued: C. General Lona -Term Debt (1) Revenue Bonds - On July 10, 1985, the Board adopted a resolution autho- rizing the issuance of $25,000,000 of Refunding and Capital Improvement Revenue Bonds. on November 1, 1985, the Board issued $9,855,000 of Refunding and Improvement Bonds, 1985 Series. The proceeds of this issue legally defeased the County's Capital Improvement Revenue Bonds, Series 1980 and 1981, and provided funds to finance the cost of construction and to reimburse the County for certain capital projects. On July 1, 1987, the Board issued $3,655,000 of Capital Improvement Revenue Bonds, 1987 Series. The proceeds of this issue provide funds for construction of certain capital projects. The bonds and interest thereon, from both these issues, are payable solely from and collateralized by a first lien upon and pledge of the County's half -cent sales tax and related investment income. The revenue bond resolution, as dated July 10, 1985, and as amended and supplemented, provides for the following: a. The Revenue Bonds consist of: Balance Interest Outstanding Rates and original September 30, Dates Maturity Issue 1992 Refunding and Improve- ment Revenue Bonds, 1985 Series - 5.51-8.751 Serial Bonds 9/1 i 3/1 1997 $ 4,000,000 $ 2,090,000 Term Bond 91 2000 1,735,000 1,735,000 Term Bond 9.1251 2002 1,440,000 1,440,000 Term Bond 9.1251 2005 2,680,000 2,680,000 9,855,000 7,945,000 Capital Improvement Revenue Bonds, 1987 Series - 4.751-7.301 Serial Bonds 9/1 i 3/1 2000 2,165,000 11515,000 Term Bond 7.751 2005 1,490,000 1,490,000 3,655,000 3,005,000 S13,510,000 510.950.000 B -al INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 S. Lona -Term Debt - Continued: C. General Lonq-Term Debt - Continued Revenue Bonds - Continued .i i b. Disbursements or expenditures of bond proceeds which have been desig- nated as construction funds shall be made only after written approval of the County Administrator or his designee. c. Establishment and maintenance of various funds - • Revenue Fund to record County sales tax monies received by the County from the State. • Sinking Fund to pay principal and interest payments coming due during the current fiscal year. The amounts in this account are F restricted by the bond resolution and thus, a reserve of fund balance has been established for them. d. Other covenants - The resolution provides for several additional covenants such as required books and records and annual audit. (2) General Obliqation Bonds - On July 27, 1989, the Board issued $5,900,000 of General Obligation Bonds, 1989 Series. The issuance of the 1989 Series Bonds was approved by a majority of votes cast in a bond referendum held on September 2, 1986 by the qualified electors of the County. The princi- pal and interest on the Bonds are payable from ad valorem taxes levied and collected upon all taxable property within the County. The proceeds from this issue provide funds for certain improvements to and expansion of the County -wide library system, including land acquisition, construction of branch buildings and purchase of library materials. At September 30, 1992, General Obligation Bonds consisted of the following: Outstanding at Rates and Original September 30, Description Dates Maturity Issue 1992 General Obliga- 5.75%-6.15% tion Bonds, 1989 Series 7/1 i 1/1 1994 S5.900,000 �S2.585.000 B-42 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 S. Lonq-Tern Debt - Continued: C. General Lonq-Term Debt - Continued (3) Special Assessment Bonds - The proceeds of the initial special assessment bonds were used to extend the water and sewer distribution systems along Florida State Road 60. The proceeds of the Rockridge Special Assessment bonds were used for acquisition and construction of sewer line extensions in the Rockridge Sanitary Sewer area. The proceeds of the North County Special Assessment bonds were used for acquisition and construction of a physically independent North County Wastewater System. The payments of principal and interest on special assessment bonds and all other required payments are being paid solely from the proceeds of the assessments levied against benefiting property owners. There is no secon- dary lien on the assets or the revenues of the County's Water and Sewer System, however, if through foreclosure proceedings the property cannot be sold at auction, then the County must acquire it for its market value. At September 30, 1992, special assessment bonds consisted of the following: Outstanding at Rates and Original September 30, Description Dates Maturity Issue 1992 Route 60 Sewerline 8.47% construction 1/1 1996 $ 2,797,675 $ - • Rockridge Sewer 6.75%-8.00% construction 6/1 i 12/1 2000 720,000 580,000 North County Sewer 7.75% construction 4/1 i 10/1 2000 6,075,000 5,465,000 S 9.592,675 S 6.045,000 The County paid these bonds off early during the current fiscal year. B-43 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATSMUTS - CONTINUED Year Ended September 30, 1992 S. Lona -Term Debt - Continued: C. General Lona -Term Debt - Continued: (4) The annual debt service requirements to amortize all revenue bonds and general obligation bonds and special assessment bonds outstanding at September 30, 1992 are as follows: Fiscal Teat ending September 30, 1493 1494 3445 1996 if97 IM -2002 2001-2005 Totals Loses Amounts representing Interest Total Fiscal Year ending RsptemWr 30, 1993 1994 1!95 1996 1l9i 1998-2002 2gG3-2005 Totals Least Amounts representing interest Total "venue Bonds Refunding and Capital laproYement loprO9e ani 1985 Series 1907 aeries S 1,062,364 6 367,760 1,06{:380 360,760 1,063,106 368,840 1,063:300 367,960 1,039.037 371:000 6,313,006 1,645:108 3,183,700 1,11675 13,809,513 41002,153 S,864,S13 1,797,183 a 7,945,000 s 3,005 -ODD 6eeelal Assessesnt Banda Rockridge worm county Barer Bever S 119,295 $ 1,009,900 108,995 962,625 108:715 915,350 98:090 869,075 42770 515.994 254,910 217951100 782,675 71367,044 202,675 1,902,044 S 580,000 S 5,465,000 General Obliastian Bonds series 1!119 5 1,400,352 1,417,102 2,025,454 240,454 6 2.585,000 Total 6 3,967,651 3,921,770 2,456,011 2.397,475 2,339,381 10,206,206 4.2.1,37: 29,S86,969 29,586,069 10,006.069 19,580,000 (5) The revenue, general obligation, and special assessment bonds are reported in the General Long -Term Debt Account Group since they do not represent obligations of any governmental or proprietary fund types. 8-44 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 S. Lonq-Term Debt - Continued: D. Summary of Defeased Debt Outstandinq The following outstanding revenue bonds are legally defeased. Since governmental obligations are held in escrow for the payment of principal and interest, the bonds are not liabilities of the County. Outstanding Retired Outstanding at During at September 30, Fiscal Year September 30, 1991 1992 1992 Capital Improvement Revenue Bonds: Series 1980 S 3.830,000 S 75,000 3.755.000 Series 1981 605.000 3n.000 575.000 Solid Waste Disposal System Revenue Bonds, Series 1977 500.000 S 160.000 9 340.000 E. Capital Leases and Notes Pavable (1) General Lonq-Term Debt Capital Leases - The County has entered into several lease -purchase agreements to purchase various types of equipment with lease terms varying from 24 to 60 months. The following is a schedule of future minimum lease payments under capital leases, together with the present value of the net minimum lease payments, as of September 30, 1992: Clerk Board of of the Year Ending County Circuit Property September 30. Commissioners Court Sheriff Appraiser Total 1993 $ 59,873 S 4,608 $ 58,736 $124,730 $247,947 1994 59,873 1,921 54,219 96,644 212,657 1995 - - 32,743 57,325 90,068 1996 - - 1,126 37,995 39,121 1997 - - - - - Total Minimum Lease Payments 119,746 6,529 146,824 316,694 589,793 Less: Amount representing interest 13,196 884 14,640 26,877 55,597 Present Value of Net Minimum Lease Payments $106,550 S 5,645 $132.184 $299.817 S534.196 B-45 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 S. Lona -Term Debt - Continued: E. Capital Leases and Notes Payable - Continued The following is an analysis of the leased property under capital leases: 9. Provision for Closure Costs: As explained in Note 1.0., current regulations of the U.S. Environmental Protection Agency (EPA) and the Florida Department of Environmental Regulation (FDER) require the Solid Waste Disposal District (SWDD) to place a final cover on closed landfill areas, and to maintain those areas for up to thirty years after closure. The SWDD recognizes the expenses associated with final closure and post -closure maintenance of the landfill areas over the active life of those areas. These costs are recog- nized in each operating period based on the amount of waste received during that period, regardless of when cash disbursements are made for these costs. The SWDD periodically obtains updated and revised estimates of total future closure and post -closure costs from its consulting engineers. The provision for closure costs reported in the financial statements as operating expense represents the portion of these estimated future outlays which are allocable to the current year based on the amount of waste received at active landfill areas during the year. The total unrecognized closure and post -closure costs attributable to the currently active landfill area (Segment II) is approximately $2.1 million. These costs will be recognized in future periods as the remaining capacity is filled. This landfill area is expected to close in the year 1996. In addition, the SWDD has already purchased land which is expected to provide landfill capacity through the year 2002. B-46 Capitalized Cost Clerk Board of of the Type of County Circuit Property Property Commissioners Court Sheriff Appraiser Total Computer equipment S - $ - 5 - $440,694 $ 440,694 Copier equipment - 7,671 70,163 - 77,834 Automotive equipment 475,775 - - - 475,775 Communication equipment - - 129,605 - 129,605 S475.775 S 7,671 S199,768$440,694 $1.123.908 The equipment listed above is recorded in the General Fixed Assets Account Group. 9. Provision for Closure Costs: As explained in Note 1.0., current regulations of the U.S. Environmental Protection Agency (EPA) and the Florida Department of Environmental Regulation (FDER) require the Solid Waste Disposal District (SWDD) to place a final cover on closed landfill areas, and to maintain those areas for up to thirty years after closure. The SWDD recognizes the expenses associated with final closure and post -closure maintenance of the landfill areas over the active life of those areas. These costs are recog- nized in each operating period based on the amount of waste received during that period, regardless of when cash disbursements are made for these costs. The SWDD periodically obtains updated and revised estimates of total future closure and post -closure costs from its consulting engineers. The provision for closure costs reported in the financial statements as operating expense represents the portion of these estimated future outlays which are allocable to the current year based on the amount of waste received at active landfill areas during the year. The total unrecognized closure and post -closure costs attributable to the currently active landfill area (Segment II) is approximately $2.1 million. These costs will be recognized in future periods as the remaining capacity is filled. This landfill area is expected to close in the year 1996. In addition, the SWDD has already purchased land which is expected to provide landfill capacity through the year 2002. B-46 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 9. Provision for Closure Costs - Continued: All amounts recognized are based on what it would cost to perform all closure and post -closure functions in current dollars. Actual costs may be different due to inflation, changes in technology, or changes in laws and regulations. The SWDD is required by FDER to annually show proof of ability to finance closure and post - closure costs, and has done so by fulfilling the requirements of the financial test provision of the regulation. At the same time, the SWDD is making annual deposits to a closure cost account to provide for the financing of future closure -related expenditures. The balance in this account, as of September 30, 1992, was approxi- mately $3.8 million. 10. Defined Benefit Pension Plans; A. Florida Retirement Svstem The County's employees, except certain firemen, participate in the Florida Retirement System (FRS), a cost-sharing, multiple -employer public employee retirement system, administered by the Florida Department of Administration. The FRS is noncontributory for all members, all contributions are made by the employer. The FRS has five classes of membership with descriptions and contribution rates in effect during the period ended September 30, 1992 as follows (contribution rates are in agreement with the actuarially determined rates): Period 10/1/91 1/1/92 to 12/31/91 to 9/30/92 Reaular Class - Members not qualifying for other classes 16.20% 16.991 Senior Management Service Class - Members of senior management who do not elect the optional annuity retirement program 18.87% 19.48% Special Risk Class - Members employed as law enforcement officers, firefighters, or correctional officers and meet the criteria set to qualify for this class 26.00% 26.83% Special Risk Administrative Support Class - Special risk members who are trans- ferred or reassigned to non -special risk and meet the criteria 20.64% 19.99% Elected Countv Officer's Class - Certain elected county officials 23.80% 25.07% B-47 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 10. Defined Benefit Pension Plans - Continued: A. Florida Retirement Svstem - Continued The FRS provides vesting after ten years of creditable service. Members are eligible for normal retirement after vesting (10 years or more creditable service for regular members). Early retirement may be taken anytime after vesting, but there is a five percent benefit reduction for each year prior to normal retirement age (less than 30 years service or 62 years of age for regular members). Members are also eligible for in -line -of -duty or regular disability benefits if permanently disabled and unable to work. Benefits are computed on the basis of age, average final compensation and service credit. The County's contributions to the FRS, which are based on Section 121, Florida Statutes, through September 30, 1992 were $5,980,901 on covered payroll of $29,625,287, for a 20.19% contribution rate. Total payroll for the County was $30,779,665. The County's contribution represented less than It of total contributions required of all participating employees. The most recent actuarial study was prepared as of July 1, 1991 and indicated no major changes in procedures and assumptions. Section 121.031(3) of the Florida Statutes requires that an actuarial review of the FRS be performed biennially. The conclusions of the review are included in the annual report of the FRS. As of the most recent annual statewide report dated July 1, 1991, the FAS had 111,821 retirees and beneficiaries, 18,131 vested but terminated potential annuitants and 544,497 active members. Of the active members, 212,247 are vested. The total annual payroll of the vested members was approximately $14 billion. The total unfunded pension benefit obligation of the FRS at July 1, 1991 is calculated as follows: Total July 1, 1991 (in millionst Pension benefit obligation: Active member contributions $ 471 Employer -financed vested benefits 20,234 Employer -financed non -vested benefits 3,261 Total 23,966 Annuitants and vested terminated 9,853 Total pension benefit obligation 33,819 Net assets available for benefits (at cost) 21,644 Unfunded pension benefit obligations $12.175 B-48 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 10. Defined Benefit Pension Plans - Continued: A. Florida Retirement Svstem - Continued The amount of the total pension benefit obligation is based on a standardized measurement established by the GASB Statement No. 5. The standardized measure- ment is the actuarial present value of credited projected benefits. This pension valuation method reflects present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date and is adjusted for the effects of projected salary increases and any changes in benefits. Because the standardized measure is used only for disclosure purposes only, the measurement is independent of the actuarial computation made to determine contributions to the pension plan which is the entry age actuarial cost method. For further information, including 10 -year historical trend information, refer to the State of Florida's Comprehensive Annual Financial Report or the various publications available from the Florida Department of Administration. B. Firefighters Pension Plan In October, 1981, the South Indian River County Fire District took over opera- tions of the City of Vero Beach's Fire Department. Full-time firemen were given the option of joining the Florida Retirement System or remaining in the City's plan. Twenty full-time firemen and all of the volunteers elected to remain in the City's plan. Those who joined the Florida Retirement System received refunds of their contributions from the City's plan. The City has by Statute retained fiduciary responsibility for this plan which is a single employer public employee retirement system. Employer contributions to the PERS are made by the County. Benefits vest after 10 years of service. Firefighters who retire at the earlier of age fifty-five and ten years of contributing service or age fifty-two and twenty-five years of contributing service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 2.50 percent of their base compensation over the highest five years of employment, multipled by credited service. The PERS also provides death and disability benefits. These benefits and other requirements are established by State Statute and City of Vero Beach ordinance. The firefighters are required to contribute 7 percent of their compensation. The PERS also receives contributions from the State for insurance premium refunds. The County is required to contribute the remaining amount necessary to pay the annual normal cost plus an amount sufficient to fund any unfunded accrued liability over 40 years. B-49 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 10. Defined Benefit Pension Plans - Continued,: B. Firefighters Pension Plan - Continued Fundinq Status and Proqress - The amount shown as the "pension benefit obliga- tion" is a standardized disclosure measure of the present value of pension bene- fits, adjusted for the effects of projected salary increases and step -rate bene- fits, estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status of the PERS on a going -concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to the PERS. The pension benefit obligations were computed as a part of actuarial valuations performed as of October 1, 1992. Significant actuarial assumptions used in the valuation include (a) a rate of return on the investment of present and future assets compounded annually of 71, and (b) projected salary increases of 7% a year compounded annually attributable to inflation. Total unfunded pension benefit obligations are as follows: October 1, 1992 Pension Benefit Obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $1,370,968 Current employees - Accumulated employee contributions including allocated investment earnings 281,068 Employer -financed vested 1,792,853 Employer -financed nonvested 24,536 Total Pension Benefit Obligation 3,469,425 Net Assets Available for Benefits, at cost 3,599,607 Net Assets Over (Under) Pension Benefit Obligation S 130.182 During the current year, the following changes were made in the actuarial assumptions or benefit provisions that affected the pension benefit obliga- tion: The actuarially assumed rate of investment earnings was increased from 6.5% to 7%, which reduced the pension benefit obligation by $174,592. B-50 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 10. Defined Benefit Pension Plans - Continued: B. Firefighters Pension Plan - Continued Actuariallv Determined Contribution Reouirements and Contributions Made - The County's funding policy provides for actuarially determined periodic contribu- tions to the plans. The required contributions are actuarially determined and include normal costs (after deducting expected employee contributions) and the amount of the additional unfunded obligations created due to increases in plan benefits over a period of 40 years. Employer contribution rates are determined using the frozen entry age actuarial funding method. The Firemen's PERS uses the aggregate actuarial cost method which does not produce a past service liability that is amortized over a fixed number of years. Instead, the value of all projected benefits in excess of current assets is paid off over the future working years of the covered employee. Therefore, this method automatically funds the remaining value of benefits while there are still active members. The significant actuarial assumptions used to determine the actuarially deter- mined employer contribution requirement are the same as those used to compute the actuarial present value of credited projected benefits. There was a change in the current year in the benefit provision. The number of years considered in determining the average final compensation changed from 5 years to 3 years. This change increased the pension benefit obligation by $157,050. There were no changes in the current year in the actuarial funding method. The contributions made to the plan during the fiscal year ended September 30, 1992 were based on the actuarial report dated October 1, 1991. Contributions made by employees and employer are in agreement with the actuarially determined contributions. An analysis of contributions made during the current fiscal year is as follows: Contributions made: Employee - 7% of compensation $ 28,716 State - Premium Tax Refunds 75,638 Employer - Additional amount necessary to pay the annual normal cost and amortize any unfunded actuarial accrued liability - Total Contributions $104,354 Current Year Covered Payroll (same as total current year payroll) $380,268 Contributions as a Percentage of Current Year Covered Payroll: Employee 7.6% State 19.9% Employer 0% B-51 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 10. Defined Benefit Pension Plans - Continued: B. Firefiqhters Pension Plan - Continued Trend Information - The required three-year historical trend information is as follows: NetAssets Available Valuation for Boned to Date (at Coat) 30/1/90 S 3,072.965 30/l/91 3,337.216 10/1/92 3,596,607 Net Assets Pension Over (Under) Benefit Percentage Pension Benefit Obligation Funded Obligation S 3.026.190 101.5 6 S 66,767 3,290,025 101.2 5 39,213 3,669,625 103.754 130,102 Aueta in E:C . of Pension Benefit Employer Covered Obligation Contributions Annual as a 5 of Annual at a a of Annual Payroll Covered Payroll Covered Payroll S 367,752 12.75 - 390,705 10.05 - 300,260 34.25 - For further information, including the required ten-year historical trend information, refer to the City of Vero Beach's Comprehensive Annual Financial Report. The required ten-year historical trend schedules provide information about the progress made in accumulating sufficient assets to pay benefits when due. 11. Deferred Compensation Plan: The County offers its employees deferred compensation plans created in accordance with the Internal Revenue Code, Section 457. The plan permits them to defer a portion of their compensation until future years. The monies placed in the deferred compensation plan are not available to employees until termination, retirement, death, or an unforseeable emergency. All amounts of compensation deferred under the plan, all property and rights pur- chased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or beneficiary) solely the property and rights of the County, subject only to the claims of the County's general creditors. Participants' rights under the plan are equal to those of general creditors in an amount equal to the fair market value of the deferred account for each participant. The County has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The County believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. B-52 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 12. Seqment Information: The County maintains Enterprise Funds for its Solid Waste Disposal District, Golf Course, County Building, Water and Sewer System, and Housing Authority Funds. Segment information for the year ended September 30, 1992 follows: solid Waste water Disposal Golf County and Bever Housing District Course Building system Authority Total Operating Revenues $ 5,253,284 $1,476,966 $ 471,932 $10,712,023 $ 356,903 $18,271,108 Operating Grant Revenue 203,814 - - - 11,297 215,111 Operating Depreciation and Amortisation Expense 1,182,685 82,054 27,256 3,061,413 156,396 4,509,806 Operating Income (Lass) (204,613) 161,321 (431,186) 1,502,923 (144,004) 904,441 Operating Transfers In - - - - 84,666 84,666 Net Income (Loss) 308,813 104,360 (395,502) 1,089,777 (78,167) 1,029,261 Fixed Assets: Additions 2,156,077 3,76S,534 350 11,979,376 3,530,852 21,414,189 Deletions - net of accumulated depreciation 52,521 - 1,029 2,677 2,305 58,532 Net Working Capital (Deficit) 1,615,342 49,231 416,043 3,289,572 62,755 5,452,943 Total Assets 17,422,513 9,776,146 530,396 90,912,935 9,068,393 127,710,383 Bonds Payable From Operating Revenues - Net 6,555,000 8,461,587 - 24,614,445 51448,400 45,279,432 Total Equity 7,593,429 261,670 464,065 63,236,268 3,420,442 74,965,674 Current Year Net Increase in Contributions 1,694 1,500 - 4,823,856 2,319,197 7,146,249 13. Oaeratina Leases: The County has entered into noncancellable operating leases, both as lessor and lessee. Lease terms vary from 2 to 30 years. Lease revenues totaled $59,315 and lease expenditures totaled $94,775 for the year ended September 30, 1992. The County also leases other equipment and office facilities as both lessor and lessee on a month-to-month basis. B-53 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 13. Operatinq Leases - Continued: Future Minimum Lease Receipts The following is a schedule by years of minimum future rentals to be received on noncancellable operating leases for office space as of September 30: Year Ending September 30, 1993 $ 68,541 1994 68,541 1995 59,315 1996 46,696 1997 45,000 Remaining 549,375 Total future minimum lease receipts S837,468 The property being leased is included in the County's General Fixed Asset Account Group and has a carrying value of $834,273. Future Minimum Lease Payments The following is a schedule by years of minimum future rentals to be paid by the County for noncancellable operating leases for office space as of September 30: Year Ending September 30, 1993 $ 57,854 1994 56,663 1995 35,953 1996 17,016 1997 17,016 Remaining 374,352 Total future minimum lease payments 8558.854 14. Fund Equity: A. The County has established certain reserves for restricted assets of the Enterprise Funds. These assets are restricted by various covenants within the revenue bond issues, as described in Note 8. Reserved retained earnings at September 30, 1992 consist of the following: B-54 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 14. Fund Eauitv - Continued: B. The following is a summary of changes in Proprietary Fund contributions by Fund: Tntarnriea Fund. Internal Service Funds solid Wants Water Disposal Golf County Ana Hower Sousing Flsat Belt DiatriCt Course 301ding System Authority Wansoement Insurance Total Contributions At Oetober 1. 1991 $607.052 $422,013 9 12.151 $50.649.039 $1.010.693 $629,220 $ 9.623 953,339.411 Inensas in eeeteibutione 91,979 1,500 - 5,993,652 2,350,792 - - 9,427.953 Depreciation On contributed assets 90.255 - - 1.159.924 31.595 - - 1,251.704 Contributions at Beptesber 30, 1992 AM 746 j'jjylj t It .l al t99. 03.697 s3.329.ta5 �te.:� 6 f.423 {60.455.660 C. The County has established certain reserves within the fund equity section of the governmental funds. Reserved fund balances at September 30, 1992 consist of the following: Amount Board of County Commissioners: General Fund: Reserved for loan receivable $ 1,500,000 Reserved for emergency management 25,483 S 1.525.483 Funds for the emergency management reserve are segregated in compliance with an agreement between the County and a mobile home park to be used solely for emergency management purposes, a general fund type expenditure. Debt Service Funds: Reserved for debt service - Library Bonds Refunding and Improvement Bonds Rockridge Sewer Assessment Bonds North County Sewer Assessment Bonds These reserves represent fund balances reatricted to debt service requirements of the revenue and general obligation bonds. B-55 $ 595,997 1,790,933 100,295 2,951,015 S 5.438.240 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 14. Fund Eauitv - Continued: Capital Projects Funds: Reserved for capital projects - Indian River Boulevard North $ 5,925,762 Optional Sales Tax 3,403,741 Gifford Road Construction 677,651 510.007.154 These reserves are the fund balances that are restricted to specified capital projects. D. The following is a summary of residual equity transfers made during the fiscal year ended September 30, 1992: General Fund $ Special Revenue Funds: Pistol Permits Gifford Road Improvements Debt Service Funds: Route 60 Water Assessment Bonds Capital Project Funds: Treasure Shores Park Gifford Road Construction Enterprise Funds: Water and Sewer System Residual Eauity Transfers increase in In Out Contributions 102,153 $ - $ - (3,929) - (673,158) - - (216,722) - - (98,224) - 673,158 - - - - 216,722 S 775,311 S (992.033) S 216.722 B-56 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 15. Fund Equity Deficit: The following funds had deficits in retained earnings at September 30, 1992: Fund Deficit Enterprise Fund: Golf Course $161,643 Internal Service Fund: Fleet Management 428,812 The Golf Course began operations during the fiscal year ended September 30, 1987. The retained earnings deficit in the Golf Course Enterprise Fund will be eliminated by anticipated operating income in future periods. The retained earnings deficit in the Fleet Management Internal Service Fund will be eliminated by anticipated operating income in future periods. 16. Risk Manaqement: The County is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. During a previous fiscal year, the County established a fund to account for risk management called the Self Insurance Fund (an internal service fund). The risk management program began on November 1, 1988. Under this program, the Self Insurance Fund provides coverage for up to a maximum of $100,000 for each worker's compensation claim, $100,000 for each general or auto liability claim, $100,000 for each property damage claim, and $25,000 for each errors or omissions claim. In addition, an aggregate loss fund was established of $600,000. As of November 1, 1989, the County's risk retention amounts were increased to $200,000 for each worker's compensation claim and as of October 1, 1989 $500,000 for each general or auto liability claim. Risk retention was decreased to $10,000 for each property damage claim and stayed the same for errors or omissions. The aggregate loss fund was increased to $1,000,000. The County purchases commercial insurance for claims in excess of coverage provided by the Fund and for all other risks of loss. B-57 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 16. Risk Manaqement - Continued: All departments of the County participate in the program. Payments are made by various funds to the Self Insurance Fund based on past experience and actuarial estimates of the amounts needed to pay current year claims. The claims liability of $1,218,257 reported in the Fund at September 30, 1992 is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the finan- cial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Estimates for claims incurred but not reported are actuarially deter- mined and recorded. Changes in the Fund's claims liability amount during the current and prior fiscal years are as follows: Balance at Fiscal Year Beqinninq 1988-1989 $ -0- 1989-1990 415,250 1990-1991 1,113,947 1991-1992 2,070,449 Current Year Capital Claims Balance and Changes Claim at Fiscal in Estimates Payments Year End $504,167 $ (88,917) $ 415,250 866,250 (167,553) 1,113,947 1,144,583 (188,081) 2,070,449 (426,841) (425,351) 1,218,257 Included in the charges to other funds is an amount to fund future catastrophic losses and at September 30, 1992, the retained earnings balance of $2,500,972 has been designated for this purpose. 17. Commitments and Continqencies: A. Litiaation - The County is contingently liable with respect to lawsuits and other claims incidental to the ordinary course of its operations. In the opinion of management, based on the advice of legal counsel, the ultimate disposition of lawsuits will not have a material adverse effect on the financial position of the County. B. Construction Commitments - The County has various construction contracts out- standing at September 30, 1992. In the Capital Projects Funds, projects are for Indian River Boulevard North and the New Judicial Complex. In the Enterprise Funds, the landfill expansion, Golf Course expansion, Gifford Sludge Facility, and various water and sewer projects are under construction. A summary of these projects at September 30, 1992 is as follows: Capital Proiects Enterprise Total Total contract price $ 6,132,186 $17,820,440 $23,952,626 Total paid as of September 30, 1992 5.329,771 9,798,833 15,128,604 Remaining commitment at September 30, 1992 S 802,415 S 8,021.607 S 8,824,022 B-58 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 17. Commitments and Continqencies - Continued: C. Grants - Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. If any expenditures are disallowed as a result of these audits, the claims for reimbursement to the grantor agency would become a liability of the County. In the opinion of management, any such adjustments would not be significant. 18. Subseauent Events: A. Refundinq Revenue Bonds. Series 1991 - On December 8, 1992, the Board issued a $7,530,000 Bond with maturity dates ranging from 1993 to 2005 and interest rates of 2.70% to 5.85%. This bond issue was used to retire a portion ($3,605,000) of the County's outstanding Refunding and Improvement Revenue Bonds, Series 1985, and all of the outstanding Capital Improvement Revenue Bonds, Series 1987 ($2,855,000). The Series 1992 Bonds will be paid from and secured by a first lien upon and pledge of the proceeds of the Local Government Half -Cent Sales Tax and certain Investment Income received by the County. The County realized a present value savings of future cash flows with this refunding transaction. B. Indian River County Judicial Complex - Work has continued on the $22,000,000 Judicial Complex. The project is comprised of a three-story courthouse and a three-level parking garage. The Board authorized the project out for bid in September and received contractors' proposals in October. The contract was awarded to James A. Cummings, Inc. at a cost of $13,272,600, which was under the estimated price. Groundbreaking ceremonies were held on November 5, 1992 and construction began on that date. The contractor has fourteen months to finish the project. The move -in date is anticipated to be in early spring of 1994. The project is being funded with revenues from the optional one -cent sales tax. C. Golf Course - In early 1990, a favorable feasibility study allowed the Board of County Commissioners to approve the expansion of the Sandridge Golf Club to 36 holes. The formal dedication and opening of the new Lakes Course, a Par 72, 6,217 -yard golf course designed by acclaimed golf club architect, Ron Garl, and the new Clubhouse was held November 28, 1992. Complimenting the County's 36 -hole Sandridge Golf Club is a new 7,000 -square foot clubhouse housing the Pro Shop, Snack Bar and Restroom facilities. Also included in this expansion was an additional cart storage building and improvements to the golf maintenance area. This expansion was funded with the County's $6,015,000 1991 Recreation Revenue Bonds. D. Land Acauisition Referendem - The voters of Indian River County approved a referendum on November 3, 1992 authorizing the issuance of General Obligation Bonds in an amount not to exceed $26,000,000 to finance the cost of acquiring environmentally significant land to protect water quality, open spaces, and wildlife habitat. The maximum annual payments to be payable from ad valorem taxes shall not exceed 1/2 mill and none of the bonds shall be issued for a term longer than 15 years. B-59 INDIAN RIVER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS - CONTINUED Year Ended September 30, 1992 18. Subsequent Events - Continued: E. Emerqencv Services District - The voters of Indian River County approved a referendum in a March 1991 election to consolidate the three fire districts (South, North and West) and the Advanced Life Support (ALS) units. This consolidation was completed and the Emergency Services District became operational on October 1, 1992. F. Septage/Sludge Facilitv - Construction of the new regional sludge treatment facility will soon be completed and has a scheduled operational date of February 1993. This facility, funded in part with the Water and Sewer Revenue Bond, Series 1991, and in part with a U.S. Environmental Protection Agency grant, is needed to meet the County's immediate and future needs for treatment and disposal of sludge (the solid or semi-solid residual by-product of the waste- water treatment plant process), Septage (the liquids from residential septic tank haulers, dumping stations and portable toilet facilities), and grease (the material taken from commercial grease traps typically found at food processing facilities and restaurants). G. New Business Tax Incentives - On January 12, 1993, the Commissioners adopted a resolution calling for a special election to determine whether the Board of County Commissioners shall have the power and authority to grant ad valorem tax exemptions to new or expanding businesses. A special election will be held on April 13, 1993 to present this referendum to the voters of Indian River County. H. Housinq Authoritv - Orangewood Park Apartments - On July 16, 1991, the Housing Authority adopted a resolution authorizing the issuance of a revenue bond payable to the U.S. Department of Agriculture, Farmers Home Administration, for the purpose of financing a part of the cost of acquiring, erecting and constructing low -rent, multi -family housing facilities (Orangewood Park Apart- ments). On September 5, 1991, the Housing Authority issued the revenue bond in the amount of $2,006,400. The bonds are payable at an annual rate of 1% over a period of 30 years. On September 4, 1991, a contract for $3,583,806 was entered into by the Housing Authority with a building contractor for construction of the Project. Orangewood Park Apartments was completed and dedicated on November 19, 1992 and became operational on December 1, 1992. I. Housinq Authoritv - New Proiect - During fiscal year 1992, the Housing Authority signed a purchase option for acquisition of land in connection with construction of another low -rent, multi -family housing facility. The Authority has since submitted a contract to FmHA and is awaiting approval. B-60 ENTERPRISE FUNDS To account for the revenues, expenses, assets and liabilities associated with the County landfill. County Golf Course - To account for the revenues, expenses, assets and liabilities associated with the County Golf Course. County Building - To account for the revenues, expenses, assets and liabilities associated with the building permit and inspection program. Water and Sewer System - To account for the revenues, expenses, assets and liabilities associated with the County water and sewer system. Housing Authority - To account for the revenues, expenses, assets and liabilities associated with providing low income housing within Indian River County. Financing is provided by loans from the State of Florida, U.S. Department of Agriculture, and transfers from the County's General Fund. B-61 INDIAN RIVER COUNTY, FLORID/ COMBINING BALANCE SHEET ALL ENTERPRISE FUNDS September 30, 1992 B-62 SOLID WASTE DISPOSAL GOLF DISTRICT COURSE ASSETS Current Assets: Cash and cash equivalents $ 601,593 $ 179,789 Investments 966,006 - Accounts receivable - net 52,399 - Due from other funds 1,761 - Due from other governments 41,865 38 Interest receivable 115,047 13,115 Inventories - 27,355 Total current assets 1,778,671 220,297 Restricted Assets: Cash and cash equivalents - 1,780,129 Investments 8,921,354 881,432 Due from other governments - - Impact fees receivable - - Special assessments receivable - - Advance to other funds - - Total restricted assets 8,921,354 2,661,561 Property, Plant and Equipment 10,338,340 7,384,752 Less: Accumulated depreciation (31908,195) (621,655) Total property, plant and equipment 6,430,145 6,763,097 Other Assets: Unamortized bond costs 136,210 130,191 Intangible assets 156,133 - Deposits - 1.000 Total other assets 292,343 131,191 Total Assets $17,422,513 $9,776,146 B-62 WATER COUNTY AND SEWER HOUSING BUILDING SYSTEM AUTHORITY TOTALS $ 455,531 $ 1,250,387 $ 52,558 $ 2,539,858 - - - 966,006 - 1,512,222 37,418 1,602,039 - - - 1,761 - 375,415 - 417,318 - 90,558 - 218,720 - 414.466 - 441,821 455,531 3.643.048 89,976 6,187,523 - 1,023,456 223,536 3,027,121 - 8,406,226 - 18,209,012 - - 105,328 105,328 - 2,169,833 - 2,169,833 - 2,329,290 - 2,329,290 - 607,500 - 607.500 - 14,536,305 328,864 26.448.084 199,671 84,701,620 9,244,732 111,869,115 (124.806) (12.637.232) (596,073) (17.887,961) 74.865 72.064.388 8,648,659 93.981,154 - 459,194 - 725,595 - 210,000 - 366,133 - - 894 1.894 - 669.194 894 1,093,622 S 90.912.935 $9.068.393 $127.730,383 Continued The accompanying notes are an integral part of the financial statements. B-63 INDIAN RIVER COUNTY, FLORIDA COMBINING BALANCE SHEET - CONTINUED ALL ENTERPRISE FUNDS September 30, 1992 B-64 SOLID WASTE DISPOSAL GOLF DISTRICT COURSE LIABILITIES AND FUND EOUITY Current Liabilities (Payable from Current Assets): Accounts payable $ 163,329 $ 109,023 Due to other governments - 1,939 Other deposits held in escrow - 16 Deferred revenues - 60,088 Total current liabilities (payable from current assets) 163,329 171,066 Current Liabilities (Payable from Restricted Assets): Accounts payable - 554,723 Retainage payable - 259,342 Arbitrage rebate payable 278,000 - Accrued interest payable 151,350 49,410 Bonds payable 480,000 50,000 Closure and maintenance costs payable 2,605,675 - Customer deposits 26,200 - Total current liabilities (payable from restricted assets) 3,541,225 913,475 Other Liabilities: Accrued compensated absences 59,530 18,348 Bonds payable - net of unamortized discount 6,075.000 8,411,587 Total other liabilities 6.134,530 8,429,935 Total liabilities 9,839,084 9,514,476 Fund Equity: Contributions 608,746 423,513 Retained earnings: Reserved for debt service 267,417 221,677 Reserved for renewal and replacement 1,541,893 45,000 Reserved for closure and maintenance costs 1,231,000 - Unreserved (deficit) 3,934,373 (428.520) Total retained earnings (deficit) 6,974,683 (161,843) Total fund equity 7,583,429 261,670 Total Liabilities and Fund Equity S17,422.513 59.776.146 B-64 The accompanying notes are an integral part of the financial statements. B-65 WATER COUNTY AND SEWER HOUSING BUILDING SYSTEM AUTHORITY TOTALS $ 15,549 6 353,476 $ 7,221 $ 648,598 5,218 - - 7,157 18,721 - - 18,737 - - - 60,088 39,488 353.476 7,221 734,580 - 849,239 176,993 1,580,955 - 374,380 - 633,722 ' - - 278,000 - 476,032 4,540 681,332 - 242,800 165,000 937,800 ' - - 2,605,675 - 723,837 10,797 760,834 - 2,666.288 357,330 7,478,318 26,843 85,258 - 189,979 - 24,571,645 5,283,400 44,341,632 26,843 24,656,903 5,283,400 44,531,611 66,331 27.676.667 5,647.951 52,744,509 12,181 55.473,697 3,329,880 59.848.017 - - 9,083 498,177 - 877,774 126,893 2,591,560 ' - - 1,231,000 451.884 6,884,797 (45,414) 10.797.120 451,884 7.762,571 90,562 15.117.857 464,065 63.236.268 3,420,442 74.965,874 S 530.396 S 90,912.935 X59.068.393 $127,710,383 The accompanying notes are an integral part of the financial statements. B-65 INDIAN RIVER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL ENTERPRISE FUNDS Year Ended September 30, 1992 B-66 SOLID WASTE DISPOSAL GOLF DISTRICT COURSE Operating Revenues: Charges for services $5,253,284 $1,476.966 Total operating revenues 5,253,284 1,476,966 Operating Expenses: Personal services 1,827,809 753,134 Materials, supplies, services and other operating 2,447,403 460,457 Depreciation 1.182.685 82454 Total operating expenses 5,457,897 1,295,645 Operating Income (Loss) (204.613) 181,321 Monoperating Revenues (Expenses): Interest -income 869,132 80,401 Operating grants 203,814 - Gain on disposal of equipment - - Interest expense (471,947) (151,375) Bond amortization expense (26,834) (5,987) Intangible amortization expense (8,218) - Loss on disposal of equipment (52,521) - Total nonoperating revenues (expenses) 513,426 (76.961) Income (Loss) Before Operating Transfers 308,813 104,360 Operating Transfers In - - Net Income (Loss) 308,813 104,360 Add: Depreciation on Fixed Assets Acquired by Contributed Capital 90,285 - Increase (Decrease) in Retained Earnings 399,098 104,360 Retained Earnings (Deficit), at Beginning of Year 6,575,585 (266.203) Retained Earnings (Deficit), at End of Year S6.974.683 S (161,88443) B-66 The accompanying notes are an integral part of the financial statements. B-67 WATER COUNTY AND SEWER HOUSING BUILDING SYSTEM AUTHORITY TOTALS S 471,932 $10.712,023 S 356,903 $18,271,108 471.932 10.712,023 356,903 18.271,108 720,930 3,166,806 159,034 6,627,713 154,930 2,980,681 185,477 6,229,148 27.258 3.061.413 156.396 4.509.806 903,118 9.209.100 500.907 17.366,667 (431,186) 1,502,923 (144,004) 904,441 34,413 828,670 7,568 1,820,184 - - 11,297 215,111 1,768 729 - 2,497 - (1,203,173) (35,409) (1,861,904) - (22,848) - (55,669) - (15,000) (23,218) (497) (1,524) (2.305) (56.847) 35.684 (413,146) (18.849) 40,154 (395,502) 1,089,777 (162,853) 944,595 - - 84,666 84.666 (395,502) 1,089,777 (78,187) 1,029,261 - 1.159,824 31,595 1.281.704 (395,502) 2,249,601 (46,592) 2,310,965 847.386 5,512,970 137,154 12.806.892 S 451,884 S 7.762.571 S 90,562 515,117,8557 The accompanying notes are an integral part of the financial statements. B-67 INDIAN RIVER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS, ALL ENTERPRISE FUNDS Year Ended September 30, 1992 Cash Flows from Operating Activities: Cash received from customers Cash payments to suppliers for goods and services Cash payments to employees for services Net cash provided by (used in) operating activities Cash Flows from Noncapital Financing Activities: Operating transfers in Operating grants Net cash provided by noncapital financing activities Cash Flows from Capital and Related Financing Activities: Proceeds from issuance of long-term debt Principal paid on long-term debt Interest paid on long-term debt Proceeds from sale of fixed assets Purchase of fixed assets Bond paying agent fees Bond issuance costs Capital contributed by others Net cash provided by (used in) capital and related financing activities Cash Flows from investing Activities: Purchase of investment securities Purchase of special assessments Proceeds from sale and maturities of investment securities Interest and dividends on investments Net cash provided by (used in) investing activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Classified As: Current assets Restricted assets Totals B-68 SOLID WASTE DISPOSAL GOLF DISTRICT COURSE $ 5,414,430 $ 1,531,572 (1,172,314) (395,989) (1,813,950) (749.535) 2,428,166 386.048 203,814 203.814 - (455,000) (45,000) (480,895) (628,979) (2,158,077) (2,691,796) (1,901) (543) 91,979 11500 (3,003.894) (3,364,818) (8,978,380) 6,889,469 360,000 889,960 287,477 (1,198,951) 647,477 (1,570,865) (2,331,293) 2,172,458 4.291,211 S 601.593 S 1.959,918 $ 601,593 $ 179,789 - 1,780,129 S 601.593 S 1.959.91$ Continued The accompanying notes are an integral part of the financial statements. B-69 WATER COUNTY AND SEWER HOUSING BUILDING SYSTEM AUTHORITY TOTALS $ 474,153 $ 10,246,233 $ 363,400 $ 18,029,788 (149,014) (2,926,349) (181,745) (4,825,411) (723,164) (3,149,018) (159,577) (6,595,244) (398,025) 4,170,866 22,078 6,609,133 - - 84,666 84,666 - - 11,297 215,111 - - 95,963 299,777 - 8,985,204 1,116,575 10,101,779 - (4,062,600) (108,000) (4,670,600) - (1,433,616) (33,828) (2,577,318) 2,300 1,882 - 4,182 (350) (10,687,533) (3,405,524) (18,943,280) - (2,442) - (4,886) - (226,673) - (226,673) - 4,150,016 2,317,129 6,560,624 1,950 (3,275,762) (113,648) (9,756,172) - (11,997,086) - (20,975,466) - (660,312) - (660,312) - 8,823,622 - 16,073,091 34,413 1,117,287 7,568 2,336,705 34,413 (2,716,489) 7,568 (3,225,982) (361,662) (1,821,385) 11,961 (6,073,244) 817,193 4,095,228 264,133 11.640,223 455.531 S 2.273.843 S 276.094 SS 5,566 ,979 $ 455,531 $ 1,250,387 $ 52,558 $ 2,539,858 - 1,023,456 223,536 3.027,121 iS 455.531 S 2.273.843 5 276.094 S 5� 5� 66.979 Continued The accompanying notes are an integral part of the financial statements. B-69 INDIAN RIVER COUNTY, FLORIDA COMBINING STATEMENT OF CASS FLOWS - CONTINUED ALL ENTERPRISE FUNDS Year Ended September 30, 1992 SOLID WASTE DISPOSAL GOLF DISTRICT COURSE Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities: Operating income (loss) S (204,613) S 181,321 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 1,182,685 82,054 Amortization - - (Increase) decrease in assets: Accounts receivable 1,779 - Due from other funds (1,761) - Due from other governments 162,628 7 Inventories - 9,959 Deposits 42,975 - Increase (decrease) in liabilities: Accounts payable (2,467) 52,570 Due to other governments - 1,939 Other deposits in escrow - - Accrued payroll - - Customer deposits (1,500) - Closure costs payable 956,581 - Deferred revenues - 54,599 Arbitrage rebate payable 278,000 - Accrued compensated absences 13,859 3,599 Total adjustments 2,632,779 204,727 Net Cash Provided by (Used in) Operating Activities S 2,428,166 S 386,048 Noncash Capital and Related Financing Activities: Contributed property, plant and equipment S - B-70 WATER COUNTY AND SEWER SOUSING BUILDING SYSTEM AUTHORITY TOTALS 5 (431,186) S 1,502,923 $ (144004) S 904,441 27,258 3,061,413 156,396 4,509,806 - - (3,744) (3,744) - (547,577) 10,978 (534,820) - - - (1,761) - - - 162,635 - (65,131) - (55,172) - - - 42,975 1,459 123,516 3,732 178,810 4,457 (30853) - 2,543 2,221 - - 2,221 - - (543) (543) - 81,787 (737) 79,550 - - - 956,581 - - - 54,599 - - - 278,000 (2,234) 17,788 - 33,012 33,161 2.667,943 166,082 5,704,692 5 (398,025) S 4,170,866 S 22,078 S 6.609,133 0. - S 771.525 S 105.328 S 876,853 The accompanying notes are an integral part of the financial statements. B-71 APPENDIX C MASTER BOND RESOLUTION mm RIYR MGM. FLORIDA 1115OUTTION w. 93-- A RuOtImm Avnmlztw WE MIRIHM OF CERTAIN OUTS ING WATER AND SIDEPt SUINIGAVE BONDS OF WE COMM, AND CERTAIN SpEcin ASSEESKINIE REVENUE anetis or WE Coulm; AUTHORIZING CERTAIN "wras OF WE CCANIV: AVTHORI IN THE ISSUANCE Of NOT EXCEEDING R_ - VATMAND SEVEN REVENUE BONDS, SERIES 1993A, AND WE ISSUANCE OF NOT EXCEEDING $_ OF WATER AND SEVER , REVENUE BONDS SES 119311, OF WE COUNTY To _n FUNDS TOR BONDS, NET mms AND, TO 'FINANCE CERTAIN COSTS IN CONNECTION WITH CERTAIN IN"IdECTS"WE COUNTY; PROVIDING FOR THE RIMS OF WE REGISTERED MESS OF SAID SONDSI NAlIND CERTAIN COVENANTS AND ACREENENT, I. CONNECTION THEREWITH; AND PROVIDING AN .,In DATE. IF RESOLVED By WE SCAURD OF COM( CONS(ISSIMERS OF INDIAN RIVER COMY, PIORIGA: 5=181 I. AIIINOHITY FO0. RLSOIIRION. MIR ... Wit— I, adopted P.1a.a.t o cb.,tar ITS, Florida StIt-I (1992). 1 and the, Ipplir.ble y-I.I.- of III. SECTION 2. DEFINITIONS. The fIlloolng ora shall h.. the f.11.ul,g wittrate In Chia Aa,elutlon. unle,a the content othuml,,.yearly -.quit,,; A. -t- hall me, Matter 125, Florida Statute, (1992), ated other ."Itrabl, prouietene of lay. B. Partly Bond , It - dditi.ml bond, I .... d I. 1, the toreet nd . rul-na M Ii.t--- ilm .1d he-. uhl.b bas .n .�, ifla 11.1gd furd., .. herein defined, M r.t.,eq.ally In 1 I that Sondit I .... d h,oudar , to .ten ..cur Y ;!r P.Yaant. C. -ftth,,i,,d Tmoslau,to- hall me, tb... I -m- p.,Ifi,d I, tabibi I .cached h. -n. provided the, ..h I-. the I - for the fuout. I-lv.d -at 5 ... 1.. 12;!13. IlMd"It.2.. (11.8'" ), smandod. D. ran Indian hall he Board of County Coon -la of Indn ijr G.o. ,.,;..rd IF, do. a''Booh,- shall we, the Serie, 1993 B,M, together vlth ..y Additional Parity Bunde hereafter I .... d hund 1. 'Surel Im ... me Polity' hall mem L, the S,,, 1993 Bond I ... ,.I,ry an I-, e..ny Serle. 1993 ...d. at. out ... MW, end the S.tl.. 1993 Bond ,__. Polity I, in Iff"t. -ty1. lonaidertli.. For [hew of pubpublicand IIghuf-u.y in the County end to "troy ... to lorida.t to the ..... t,., by he County of the -I- of .-h q,"- opFee" r. hall the faor I ..... d .... - da ctoaal. of the E,_. to p1luld, fund, for the Vero- of all or , port- of the ..at, and ..p.n.s... P ..... .. addltlon, -anal... M w- .... to to the Sy.1a. Is do ....... . by ". _Joel.. of -h ... cwt... to. R. 'Net R--- shell ... n the R-... I... Op. -Ir, E........ S. , 'Operating Eep hall met. the expe ... I paid or Itt,..d 'par. for the llt. faCitiLl.1 aLI11t1& - C_ f of the "area. . dau-- raiI. ardente elth generally pl Ild . x., :hall. m uli"& the If- -.- Ina.". pt. f- -.1 ...... v. .P .... . the County related a. air 1. the ly" ,at, ..ppli.. used for ouch M .large. .. .. t.:I.,I.b ...... _, I_ of I ... for r- r t but Stb uhi,h at, ...ting be reported _to b I. red II. .... 1"'. :u�.Ir ath�..pt.dg. ... ti.E tath.d., b., hall IZ: P.,::nto Into he El"It" P" R... Account there In M - - y .1 . far deprea,ti or for r .... 1. or of r.pit.1 ..eta .1 the Sy.,,.. Pu_T o thllut M FuMof 11:!, z.,". .; t -fatted f he the p to _/on ronel for the payment of Gp.1ItI.& [.pen... U. 'Paying AS.- bell mean elth -p- 1.any particular of Ronda fee., h ... ureter the Paying AS- for said ... I . of BuM, to be d.t..L-d by uh..quent T111lutiln of the Board. V. "'"S"PuMa* bell au.. the Net , together tth any .,he, and! funds Pledged In tIt.n .11h he NuM.. W -a .... 4 Date. 'hall "In the lift ... th (15th) day of the montht000dl.i, preceding an Inlet- or the, applicable Faye- dee to, the EoM.. X. Zil-Id Oural'. or any letter - hall .,,, any Pe.... abo bell 1 the * -Y Sond or londs , hou,n .n the bolo of _I.t=d*f the Court; by the S.M ..,I ...... Y. t,*16_AI'"IR.1I..r FuM' bell -an the Iltlurt .,..red Pur_ thl. R. I.t on Into hith fund. hall be d.... tied ., h * proe4ded for III purVe., of PLdths fund. for Pt of the .at, am .P:..!" of _I, " rapl.reaunt. to the Sy.t,.. -bell auen 111. 1 ... lurl... M ..ppl.-nt.d ti - Aa. Art- hall the I.... b .. ... the P., and Interest on all to Mln& S.M. -Ingo. d In one 1-11" ow Itar.1 Year: or (11) 1211 of the ..Togs . -1 noun ,.,.,,at OM int*r,., on .11 l-Mirg BOM, Mj baco.ing d 1, mul,& I VI"a. 0. ""in .. ... .bell __ "" ... 1.- "93 -M 11- a. 11"' a '"' .. SortBond, Ir* out-nding and the Sort,, 1991 gond tmut,m, Miry to In effect. H. "'M 11sil.-r- hall menLih .;.part to .n.y,.,lL,uI -I.. at Mhued d I.. h:=the N`M Easier.. or .. ,II Id Iof Mae I. bo at da .0.4 by .-b aqua tI.. of he lo d. 1. .".. hot, _an the Internal Rev,we CM. of 1986, .. amended, end any .I.il.r ub..qu.nt federal _ I- fa My .r- - - to . pa kul at,ton, aub ..c ti,,. ato.. of she Code shall also refer to the Ileus. subsection, at,., of any ef.11ar .ob..quve federal lay. J. *C....Iti., Engin....• .hall aa.. ..h -Itft.d and ......lead 1111ul:11 na . ti. -Ids and favorable =[,n to n, kill a ..Part.1to .the [ruction and operation of -Yale.. the $yet., at the it, l,t,l",d by the County to Serf— the art. and ey out the dull.. h.,:,n provided for the C-ulting 9,giner- K. *C..t.- shell -an .11 erpen,. ..... y. .,pu,,.-.r or lorlde.tol to the arq.I,LtI,n a rntlen of any Vpa,ey, real, :rSo Y!i ,:I d""' ... Intending *1 d..11.bl. for carrying out the purp.... of th I-IMLh,c aith. r Iing to Itageniality rit he gerality of the the cost of ..y land or Inter.[ i th,r,t. or of any finut.., equipant or p,ral propor lhf.r; ... to of ..q.tring any ..,at or . -r at:.or other r property I. St. r any oML,idad int.t..r th.t.tn. which In b r operated , part of the Eyn::... b Ith ay be decl ... d by I -L.. I he Board to be part of the Eye t": .,gt ... ring. I .&.I end flnanoln. .p:na..; :.Pan... r -lout.. of r .... end I ..p.- for -.y.; in. I ... it :,I. wt. , f".1.1 Id,l,,r, dainin-W. ..pan ... totaling "I'll, to _h .quinti.. or the of Inter r to =able. she - 'oM* to 11--* any portion r I Period after. of . of uh rqu I. ItI.. or --1 th . .... t,,n of r .... �bl. r ... . . for debt t.:n;..d . M ,he dl ... - on 1. of So. n p. -I.- of the se'u"itto or t!h ..; - a to 'Z y h:t �'i C. 1. . th -h R r -M am arpatua e. oey be n .a. intid.nt.1 to uth IrqItI.n or L. - -1y' shall ..In I,.dt.n At— County. Florida. ".-Federal 5 ... ritL.,- shell ou.ndit.., bli&,tLans of, or obligation. the tl-olp.lo' and In- at on hIch are unconditionally guaranteed by. the United Star.. of mertre, uhich I,, not r.d...bie prior to out-ty, It he option of the obligor. N. 6F. . I, lieu of Fee,' bell ... n the fee, paid by the Utility SI- ,, t of the County to the County In ..mid,r,ti,n for he ... of public •=,:M "ht. of-.ay f ..' in the County and to defray r..t. Ln,ld,,t t;,Ih ulat.l,,tby [he County of the ..-Lt.. and f -lit- of the Utility E. I,:.,. U.P_ of theCounty. 0. -Tt-1.... .hall .. the period b,,LmL,, with and inrludlog October fLr,t of -h Year and ending ulth and in,ludl,& the at S.pt,ob,, 3 P. *F... hire Feet- shell aea. the I... paid by .,,.r ..d/.r .e .. r other the. the Utility S. -i... W, ,t of the County. to be ..i'Retired ..M.- hall I. the mt.t..dL.g See- 1986 Bond,, he u.t_M,g • Sart.1986A Bond.. the -ItIndinit Serial 1959 aorta, the I.-IML.IE.1111 1991 B. -I, the o-t-I.S S,,I.. 1969 SpIli.1 .ur "I :od the :�:n:::dil, S.- 1990 Spatial A ..... eent B.M.. C' R.' n Iftne Met,..; (2) the S j,, IqjIq Spatial A ... :,wnt the on 9 s the Sort.. 1991 R.Z...; (5) the Se he r.b t to the .Int of the d Intone, - S- - h Iurg... TopFar.. Spatial A..!:r - is. French... Fee, and I... In lieu of Ft.,ohle. Pa.. „the Ro.ed. by ..Iu pledge p..If-11, In .-rtI.n "b h I t . ..Me; and (7) ubj he of the pond Inure., -h other 1.1.1pt. ;nd County 1:.,.Id..by :hall our pledge ap-tt,111 in h the nor orl.do, ho-- ...h etpt. M teen 14. f- - to it.:: say be I— the Pledge � .. red h .... M., p. Ltt.d by S..,I.n 15 h.t..f. DO. 'Ren., Fund' bell -n the Ircount created pu to thio R.:� utiinto hi,h .11 n... of the Sy.t.. hall be dal..11.d b, the County. . ". -S"I" 1986 poM1• :1*I,1,71,n.eh. Indian .1... County. Florida V.... and Saar A Bond 19 p Ip lGod .. of r..b.r 20, 1111. In the I, of th & 'o". L..u.d under A ... lut I.. No. $6. G-r. -1 ...ad am I.,p.ntM. IF. -r.. 1986A buM.- .1.11 .... the I.- At— County, Florida Water and Serer r R-- N.M.. Earle. 1986A, dated ., of ftt.,b.r 2o. Ing. In the ori Binl ......... Prt-CIP-1 ult of 5450,000, toad Met R ... lutit, .6-35 of the County. .• aa..d.. M aupl .... led. "' 'Settee 1989 B.M.- hall "I" 'he County, 11.,id. Water and 1. 1 fund In Settee I.. d . A th. .. , Ing Fonda, _ of 56,510,000, , P 'it 15i 98 -L!.n i "In if 5LO. 000 . 1--u-d uM-1 -1959, 19t No. 89'19 of the C.U.1y. .. ..ppl ... tied. County 'n" 'S"I" 1989 SP -11-1 A ....... �t BOM,' hall I,,n the Indian Rt... - - 11-11de SP -t1-1 R-- bond., E.r 1989. d-4 .. .1 -b- 11. I9B9, Inthe """I ...unt of $6,025.000, foal 4 Me, R ... ... 89.54 of he County. .. ....dad -M uppl...m.d. It. 'Sart.. 1990 Sp.,I.l ........n[ 3.- hall . he I Mi- RI- C County, Sp.otll A ....... nt R. N.M. letter 1190, dated are of jut. 1 9 y =r 1 $72'0.000, E..u.d M., A ... I.tj., I In the M .app 90.40 I the , mry. I .... led. jjIISI ..M.. hall ... the IM- air., Count,. Plot- ti-, .M 5...r A—.... 6-"-, Sell.. M, . dated .. of Octube, 1. I'll. In the Vrcsun. 'tip : I", '49 19 1.1�1 111- -at ,;!. .4. e..olutlon No. In) Nooda' shalt -n the larle. 1993A SuMs and the S,rj.. 19935 Some. LL, •Renee 19OU Son"• shall wenalta Indian River County, Florida Bost aha Siwe R.retres orale. $.Cie. 1993X, herein authorised to be Issued trsauid[t. Nr, •Ste.* 19938 gable• shell an the Indian River County, Florida Vater and Emr Rees_ Saha. $art.. 19935, h..at. authortaII to be lseu.d hanad.,. SSF.•6sxl.. 1943 a"tworenca Policy ana71 ww an the nicipa7 both use las loou..L "Hey Iwwd by the Sort*. 199) Bond Iruurei dusrant.. Sn6 the Vale- of prl-lpal of aha Interest on the sls. 1993 Bonds. W.I N ari., 1993ko stt" Troar..• 11,411 w n yi--(. Gotoltu"..eEasefullyEasefully.. s • ..many, .any so..... r there yt. •8*,s 1491 P,.Joe, shall wan the Sell.. 1991 ft -j-, as defiled In Re.olutlon Ne. 91.01 of the County, as .hooded and aup,ls. rl.d. tj0. 'Seri.. 1993 Ptojaci.• .bell wan (e) the-lon[lan of the South Counry Rsearee Oshoa1. Vater Tran.. fusion Plant to provide approaise,e)y 1.5 [gluon additional g4l000 par daV (b) the eannnctlon of . 3 .fill.. gallon utter otor,&, took sod Nigh Rervtee runs Station at the North Rost" several Oosee IVater Traooal nlon Plant; (C) the addition of the Rowland aleeawd ..rage tank; (d) the Ca.tncCle� of the M... 1t Yater Nal. Cal... /en P.Ject; (a) the -1-at iha Plus. III Votes M.1. fate.ton Yroj.ct; {f) Cha emslw of [ha West Regten Y........ ....fail" Pleat to provide app fwlely 2 still.. addltlovl {elle. Par day; ell (E) the cons tru.tlon o[ w effluent .-.at.. fate. -In betels. the .at aha ".reel Region. to provide a kI101owb ...-.at ftov. U. •saiw 3969 Spat.t Mi..aw. Rav*twee• shall ....If Ra .loo and Supplesen.i sanma., a. "flood in Resolution No. 89.54 of the County, as awtded sod auppisn.d, eolleer.d by the Denney .fear . "t, to be specified by .uha.gwnt _aolution of the speed. 67. •Oasis* 1990 Spatial M.e..wnt ls..ns• shall wan all R..enose, w M. In Re*oluC.n ff.. 90.40 al the County, al sn"d hod supplaw.ed, celle.tod by the County after a data to be epectfta by .ubngwnc *ao)utten of the bard. It. 'I 1.. 1991 savanw.• shalt -an all *wtpt. end rs..mal i...food by it. county fro. rho operation of the Sautes 1991 Prolat old the North Beach Vater S..herd.., u defl.d !n R ... Fort— Mo. 91-81 of the County, .. sauteed and eupplawn.a. YU, •Serle 1993 Special A .... awnt Revames• .lull .sen the sV,,t.t aswrsn. oral or lureafur I..Isd by the County in .....Llan vleh the So"..1993 rrojest. ate th. Lot . re ... . . pay -.' charges aha yes-ixta. received by the 'ty to sleddedle, thsravlth. W. •Sp,,"l Ms..ants• zboll w n tha t+.., charges and e lafell, was Rod by she County egaimt properties benefitted by co uCtlon or [rco.truccien I stew, or rater facilities ate [ipr..encing an appor iom,.r of the cwto of such lop -sunt. to such pimexciea. 0210 4. RESOLUTION m CONSTITUTE UNNRACT. In cont lde,etlon of the ac.pt.rcs It the Moods by the M$ssd Udders thereof uho shall hold the sew Irw =to tialdaa , this Resolution, shall be ed to be aha . shall nut trues E .tusen the County and such W-cov Registered Curer The enen • to ...amts at forth herein ea be p..fo*.. by the County shell be for he equal be_"" pent"ejon aha security of the so'tat.red -I. o£ the Be... 111 of vhtch .tet fish be or equal [ink end vtthouc presence, priority a dietl.tlon ulth rasps.t to sly other bon", except as expressly prevtded In this Resolution and In the .Ms• BCCTto 5. AUTHORIZATION To MIR[ THE RETISED BONDS. The rar(reoent of all of the outsurdtng Sarre. 1966 Ennui. 1. hereby wchorhad. The $elle. 1986 hold. shall be rallied upon the .awn. at the ger le. Feel Monde at the price It per, pill accrued Interest to the lath..." dots. Thos rottre, n of alt of th. outatandtng Series 1986A bores is hereby utha111ad. The Sarlee MSA land. .1011 be retired upon the if-- It t. Y..les 1993 hands at the pries or par, plus a ..... d Interest to the retiraent hats. The otirsnt of all of the outstanding Merl.. 1989 honda 11 hereby autbori..d. This ser.. 1969 Bonds ...ring baro.. Hoy 1, 1999 shall be rest rid at-tu[ity et .* "I Il of p.., pjDo Zed Interest to the w.rtty do- The Rees 19$9 .lade-tvrin6 on or .[tee May 1. 1999 shall be retired an May I. 1446. chs ..11eet optional [e"mtlan "te, K the "It. o1 £01.54 of par, p1.. wcsd l.ts*al to the wdaopcian "tete Th. [alresent of all of the outicaMi,, .ries 1991 .Ids Is h..eby wthoel.d. Thu ReVisa 1991 RIME-tuxlnE b..M Roy t 1, 2002 shalt be rat lead at hu a lty 1 she p,I.. of par, plus ...road interest a the oaturltY date. Us harle. 1991 .Ma _turing on o[ after Hey /, 2002 shall be ratl.d on May 1, 2001, the .arli..t opito.l redeeption dere, .t the price of 1021 of par, piw a.rwd interest to the a""tion "to. The *ti. -ret of .11 of the vatesaMlnE Seri.. 1989 Spaotal ...... .I Sorts is hereby athori ed. The $ails* 1989 Spacial Aesestwnt lords subJ... to sendat*" "mtien on Mtube, 1. 1943 shall be *tired on .,.be, 1. 1991 at the Price of for, plus seesd lo.'*" to the ."let{ - da.. The other Serr.e 1969 $p.clai Mo...- send hall be rat/.d on Mtobar 1. 1994, the .1111 ret lesional *"lesion data, at the pries or 1019 of pot, plus le.rwd 1..lest to Cha rte" to. "t.. Tip Isairswnt of all or the -se"ing Rata 1990 spatial sessw. fiends I. M..by *,tho[t*,d, t1,. f..l.. 1490 SPacl.l M....-nc hoM...turing be far. Jos» le 1906 .hail be retired at wturity et tha Pete. of per. plus [rad interest to Cha-tu[1,;"ts. U. /..l.. 4990 9Pe.la1 A*,aaaaane sore" on alta Ju- 1, 1996 shall be retired an June 1, 1995, the aarifeae ape.wl .."eptlon data, at tM pries of par. plus ..c[wd to*rat to the .demttnet "to. Ths Cnaty .hailyrovide Cor . ..tits.( or the settled Be"* by: (a) tssf..Ang to tete Reere. AEent. to be lard by sub.equant r...fu[ton of the baa, fres the earioua clout,, fuM* .r 11, Retired 1*11 the wounr. the In sllseable to Retired lord*; (b) traeferr3ng to the Caere. A,.., fres the various ..sere. accounts tar the Rat ad Strafe -to, if any, to be epec{(tsd W, •S.'elurg..• shall a an sp.Cisl r.., Lsas sod c1,arge. fe[ v t the Delta telae Inl didittal t the .."I l ife 4 rar.taM'[dl rear# "-It. para end [barge. of the County. wos un • ausr aero rat r XX. •Syotsshall hoa n the racer aha serer Y'resel ha .onod aep sand by the County tee of All, 11 I, 1993, uh....es located 1, the (fndWIDA .(thou, Ilol.tlon the Sell.. 1991 Prejeet). .$other uleh any .M all topr-ahbu., ..r... see and eOdLlt-. th..aeo aha»a[te[.en ,-I.d or required end any phgaice5lY lMapw"n[ eats[ or .sear eye... .... free .... •pert of the Systae by r solutionof the Based to6•1ha vlah .nY and all tmeoea...to. ..taoslona aha addltl,I. thseeco thereafter < ted o %%%1r,d. Will- intznding to Ilett Cha g+ .... itty oL Cha fe*got,, a •Sy.'s. shall Include all property, ..1• p,*ensl and .lead, rlghta,rcpov Ilca.es, lets. rights of ray p[!vlleg+s, f,-Cbt.ea and ell, ether , pe party o lntala.ts 1n prmrity o[ xnataevn oat..' f-1MSn6 but not Melted t whit le s, rolling stock, bulldings, pipe•, pulp., wchlne I.inks, saint, ondults, -tan end .,be, equfpesnt, wad a useful In c tette vlth teh/p. ululation aha Warn[.. -a of each osier or neer .yate.. by the Ca nty. W. •Ian Ronde• aboll wan the hard. or • arta. all of vhieb are stand In us Out. hot uhlch shall be subject to earlier rte ct.awns by operation ofthe Rand Aw[clterion Aece,ut. 22. -Unit Intfia......hell sea. di rare into aha .avenue. o[ Cha County derived fro. the Iepostt ion, cel lvicelon end 40ferce101t of uIifoM v end .feerte a, fees end chard*, for the use of aha the a Ito. funithad or e be Funlah.. by [h. heti tri*, a .[fettle' the $Yale.. tnciuM., the rningl end Incest Inco.. darlr.d hoe the tnvsawwc e[ eonly on deposit In the varlou+ funds and u s ated In c .clan with the Syria,. but gg"i,ddI. Surcharges, [alaetI.... Sperful as.aaent.. Fn hta Pen and pee. In It.. of French.[ yea.. Verde .porting et.gtier ours. shalt !-lws the plural nwber and vice end vord* Iepow lad De nom shall Include tt n. and c-poretlons or oIlu, a n[!t fete aha vlee ver... SECTION 3. FINDINGS. It h hereby ....twined, data mie.d and declared that: A. It is ..I .... ry, da/obis and In the best Interest of the County to tetra the Retired $ands. 61 it t. -...eery, da.[rabte and In the bete tn.reat of the flaunty to ....its, wn.I t, furnish end equip the Sari.. 1993 ".J.r.; G. Ic la nr.., dairabl. and in the bast lot .... r of the County 10 e fl. Ibe na..ryary t hits the Retired Ronda and to finance r [e In slla eonnaaelonvith the 6er1„ 1997 1,.J..ts by the .aura of the $.ties 1943 bond.. D. The Bonds shell be payable solely pros the Pledged Nod,. E. it to tspotted that the Pledged Fund. .111 be seffirieur to pay the 9,1 ncip.) of, proof., If any, and interest on the hold.. bysubsequent r*,Cha board; olutto. of oa; (.) ",.stun$ vtrh the ys<rav Aga . an unI boo the p,....do oC the ..I.of ane Sol,.. 1993 held a to be spetlflad by �ubuaquart resolution o[ the hoard; sod (d) depalt lag -h he Eecrov Agent .n if a'Y- Ern other fundi of the County . be opacified by subsaqu ut �otutt on of the board, which .. In the egVe .r., together .$In the Interest to be earned that,,., ohm IWN.I.d .o provtded In the Etcrov Agreesent hezai.ftax u ntiansd, _11 be seiftct " so yrosid, for only att.wm of the Seting honda. Tub County abali e e into an Ezccov Agrees- vith the gacrov Abe or substantially In the fora tobeapproved by sobs q.,tt r 1.1u[ton of the hoard provtdiug [or [he ratirwent of the Ratirad bon". Tho as transferred to the .crov Agent froIs, seen of the various .inktn$ fund, and unto :hell b, tad only for the purpose of paying the Int tart e the prluclpal n[ end the praulun. If ,lay, uhkh [1.t be,... due on the Retired .rdo to vht,h aid strain$ fund, and rea+rva steounw -late and ter nay he ante :pe,tftc.ny .p.eu.d by the Cowry - SM M b. AMPIRtZATION of ME SERIES 1991 PROJECTS. no a Wteiti.n, uc tion, funlahlna and eq,lppir, of the Sarlee 1993 Prof.— l: hereby authorized In sIe lore vIth plan, and spiel f lest(ons on (LIa a o be plead In [Us with the County, I -Ill.. four sins . It.. se fleeced -...ary or d..trebis by the County. SECTION 1. ROMORFUTION 00 DISCRtPT1. .1 SUV.S 1993 6DNo5. Subj.et ,red puraua. to [heprovl.ten. o[ ih. Reeolutlon, obll gaelans of the County C I e knom as 'Vara, and "ver Eevanus elude, Sart.. 19".•, ale hereby suthortxed t. be ...... in Cha aggregate Pritwtpal sunt of fro aedtng and obll,.t Ions of the County to be kaon, a •Va[er and Saver Revenue Bond., Se [I se 111-, • e hereby *whorl "ad to be iwued in the agyre$ata Prl.et,ul t of Cwt exr*,dtng 9 - Th. Sarias 1993 Ronda 41,.11 be dattd auof a date la be fired by rub .queut r anlutlon of [he County and esy bs ._.,ad co etivsly fn. R-1 p rd o, In tech .,her a agresd upon batueen the County aha the $.W Rselatrer. no derr.s 1991 .Ms shall be t..ted in urn danoei nor loll, s1,ei1 bser intsw.l , uch r aedtng char aexleuv re author t ted by applies 1. leu, be payable a .„ehnt(..e� •hall uch["tsa a[ui in such yea std to nth a ahait be wbjv.t to redamt5 an� in vhtie It, . vert, prior t theft .wi.yecttea a e dawn of tray. the eptlon 1 the C.ur,ty a .,1,v rrl es, a ouch er.e at and in .ueh a. kn.tt have such o,l.ar t and eondt"lle all a nay be da.xelnad by ..b.equent x... i.t ion If the e. d advgted at or prior I. It. seta ti rho S..las 1.1 Danlos The Sestsa 1991 1... hall be Issued to fully n8.wred foto vtthmt o.....; shalt be payable vI,h ......t to p,lnclp.l a n,porsta [rest of Flee .f thtPeyln$ Agent; .hall b. payable in la,tet eoney of the united Star.. of Aart,o; aha hall bear tntatat Iran their dor.. syaUt. by check, acted to the Re$h ..d [Mur. at that, -........ eney ;p .... on .he re6w.retlan book. kept by the Vend sa/l et tar an behalf or Cha County. At the eptlon ai any easier ... o .Mur of T1,000,000 or oua in "t-ipal s at the Sort.. 19" .red., For....I shalt be Pay.bl. by dsett. vLt. tlanater puwwnt in .rit.I l .... uaelo. fes. such Negler.red Uma,; prev4d.d the, ouch W.t,.ctlona ora .n til, vlth the Vying Asset not later in,, the applieobl, Record Dasa. H,t,Ith,tandtng soy other p.vlalon, of thisRseolus tare, the Board say. es It. spoon, prior to be dote et li.u•-a of any ss of Bonds aid *vbje.t the gP.va1 of she Purthaaai. of .ah and ..left to u. an te.biltatlon gate or pa' book entry yet,, with respect to lesuame of such Bonds, provided odagmte ,.ce.do will Do kept with respect to the Own ... hip of such 6onde taau.d lm bwk•antry ton or the beneficial ownerehtp of the such Ronde Issued in the ns.• of • nealme. As lon6 a .nY et such Bonds ass mutetending In book. .try fen, tM p[ovlston. of Section. d, 10, 11 am 12 0[ thl. Re..I.r n shall - be .pPllrable to such BOM.. TM de t.I' or any .l c....... ey.... of bond l..uame, se described In this psr.guph, .hall be .et North 1.. resolution of the gaud duly adopted at or prior to the dell ... y of such Bond.. SUTION a. MIMI. MT AIIINmt—lON O) SONOS. The Donde shell be used In the — of the County by the Matron or Vice Chaim'. of the good 'ttsee.d by its Clock ad it. Official sal o . facalalle therein[ shall be '[.lied thereto or ,prmO,,d that..,. The al6netura a[ the Che leen or it. Outten am Clerk my be either anal or fa,.falle .tgmtures. The test....ato of athantic'tlon of the Bold Reglatrar shell appear on the Donde, ane I. Bond all be v.lid or obttguory for any purpose at be entitled to any ..... ley or benefit under this R ... luttc. vole.. such ,•rti[tca , 'hall have been duly _toted oo such Bold. The autb„Ired o/gloats [or the Band KID error .hell be .maul. In ea any o of the .fit.. o[ the gaud who shell hove alprd or sealed any of a ScM, shall cease to be such officer or office,, of the Baan before the Ud..o signed and sealed ,hall have bean actually ,old and delland, such 6oM, my mvecth_l_se be sold ad deifvaad A. If the pets... Me atgned e[ as a-. bas Md lot ceased to hold such office,. My Bond. a) be .goad w ...led on behalf of the Read by such are,, who at the actual atss of the ereeutlen of ouch gond, .hal hold the proper Office, .Ithou,h .t the tof such Some such pereon my net ave held such office or my not have been mrhorl[sd. lb valldaaton c.[tlfl<ate an the N.M., If any. ,hall be .secured with to antraI or fa.. tell..[Nature or the Charon or Vice Chan.. of the Board. SECTION 9. NEGOTIARILITY, The Som, issued her.—, .hal be and •hall has all of the qualities am Imlde.te of negotl'bl. flolass-der der the lea of the Stet. of Florida, am ...h ....... to. holder. 1. at..p.m6 any of he Ienda, .ate be eo-lualv.ly d.. -d to have .goad that such Sold. shat be .m beva all e[ Ns gallrle. old i"idelta of ne,otfable Ins truaent. under the laws o[ The State of Florida. SECTION lo. REGISTRATION, TRANSFER aND U{ NANCS. The BIM Regtur.r .hall Do ...penelbl. for ealntafntn, book. for the [salstretlon, transfer and .xcang. or the Rom.. All Rome pr.eanted for transfer, erchl'” redavptmn or eye . (It an re9umed by the Boatd or eh• Som Mglatrer) .all be accomanfed by a wrists. tneeru.nt ass In. cusa.lo of [ren,[er or sUth.'i... ion for •uhsng., fn fon am with {uratemSO. rd alatur. satisfactory to the Sod or the Sold Pealatesr, duly toted by he Raalstered Owner or by his duly authorla.d attorney. 1. the ,..e If partial .deeptio. of • DOM, and 1. Ile, of lesuin, . new Sold or Sends In al _N tti_ the Cooney my'It it. Option, inunt than •tru/c[ to. the Bond o Band Re6latmreco such On the Bond the Prf-tpsl swat Of rah rede.ptlon, the date of r.dI,ptt,. and the ou[s[sV,lg principal uoa[ of such Bond after such radespli-, and return the Som ,o the Registered omen. Upon e,rramar to the BeM Reglatrar for transfer or racheng< Of any Bond ....RP&nmd by an assignee, or vrltmn autho[lmtlon for exchange, whichever 1. SECTION IS. MOVI9[ORE FOR MEIIPTION. The BOMB or any por.lolo thereof call be eubJrt to redo.ption prier to that, ...Medius stated data. of mrlry, 'c [h• .pilon .[ Na eoaey or o.hamlae, a such time and in ruch Roonar ss s shall be detemimd by subsequent resalucton sdoptm prior to he sale the reef. (Wait a specifically prohibited or otherwise provided by rubraq...t aolOct., with respect to a particular e..lu of Boma, In It,. of any mmat rade.ptlon Of Tem Sod', the CoucrY my lurch... from wner In the Sinking Fund er the Bond Aw[ rti-C- Arco—, o other .-liable fund, of the Co ... y. . Price lot t sad the Prllolmlasount the ... I plus ac,m,d In[aresc, and ceder m a' Paying Allen[ for eamatmtton Tem BoM' of the appropriate aria .d u[uraty. no coat If the Tom Boma of such sari., and aturfty to be aO called for reMrytlon on he at uM.[ory r.de.P[lon date shall be ...aced by tM prtmlpal —t oun of Tom Sods ,o purchased and tendered and, I[ the rtrclpal aw a tares[ t' .rester than the .w requited to be radeued on 01=1c." -denclon dei., Ne exas. mybecredited agatmt aubaeque t ssudatory redery[tone In such same[ as the County my dtreec. Re1ic. If such redesptton call, no[ wee than fo,ty-flea (45) day. and no[ lseo than thirty (20) day, prior to the reaepaton dare, (t) be filed with the IOM Re,I'trer 'M Paying Agent, am (it) be sailed, postage prepaid, to all R•Imlaad Amer, of Ronda ,o be ad...d .t that[ add........ they spp"r of e..a en the bank. of the "1=,.,h., eof torcY•fl- (45) days prior .o the data find for cede.pt ion. Ill croon to accrue n ony Sold duly ,.tied for p.to1 [eGrytton on the r,&,ptt,, date, If Fare— there.[ he, bean duly provided. Th. County am the Bond Regl'[rar shall lot be required to" .. oIsue ass to register [he lrane[er of or ..,he.. any Bond' tan considered for ,.daeptfon during . p..lod b.glmin, at the elm'. of bus tree, on the fifteenth (15th) Gy near p,.c,dln6 any dem of sets Ivy of Do.:..,to be redeemed and ..lug .t the close of Auslnee, on the day of I" ,I. thpi leab ..melee of radeeptlon, .a h.ratneft- pl.vld.d, or to ,,later the cane to of or eseh'nae any portion of any of the A.M, selected for redavpclan until after the redeap[lan data. All -tics. of od.aptton with respect to the Bond, .hell specify the a- u u[I.I.l aM tasba[ of the Band. to be rad .... d (Including the CUSIP mabe to); the data fired for red..ptlm; the rede.ption price or price. to Le applleabl. to the sonde o be .wise..d; ad the, an the data fired for radevp.lan such AOMe obeli be payable at the pr I,, l pal ...wrote .re,.[ office of the Paying Agent (.Pacifying the add...' of eau). If holder. or ---d .—are of all such[ods to be ad .... d filo ucltlan ..JO.. of lo[tce with the Paying 1, r. such BOnde ay 6. ledeev,d on the rede.ptton date without ince.. it [of .otic. by af11n,. Failure to all any Intl'. of rede.ptlon or any defect herein or In eh. allftg thereof ,hell lot attest the sal lJlty of any Prac.edln, for [adavptlon of other BoMe a. 0.1 ad for c.d.eptlon. Ro long as the,, le • Bold Inevrame Polley, ."11 of .deep"., of sonde, other than undatory .inking fund ad-ptlonand red..pt ion resulting trot a ""'M ,.fundlna, shall be Llven or published only if oar If .1,fund, fund[ I—. Leen dopoaleed wish the Payin6 Agan[ to pay the r,d..pti,, price of the E.M. to be ,.deessd. SECTION 14. FM OF 301103. Th. last of the Bond., to valla., len elflsste th..... am aha teatlfl,ate of ---11 of 'ball be In aubsmnt1.11y the following for., ulth ruch ovleslons, in.... tons am venation. applicable, duly ....ulad by the Re,laterad owner O. his attorney duly e,ehostsed In w[lting, the ROM Reglrrer shall deliver to the nue of the Registered Owner or she deelgmted transferee o[ t[sv(araeo, se the c ssY M, a v fully nnd gtvtered Bond or Roe of authorized d.noalloss cion' and of the mutn[ity am ate lnt•at ret , I. .n 'ggreaa[. Prl-Ip`I mount equal to the p,trctpal anon[ that realmoutstanding with ..spec[ o such Bond .n ..cc..d... d. no Bond R.,Ltur or the auord my ,VIr. peyem, fro. the R,,Iltared Omer or his transfer., of a .,(Hole,[ t any t . fee o other „V.rmene'I serge that ay I* "P to c stun with haany t .star Or eacA_,e o[ the Sonde. Such char,.. am in be paid before any such new Bond shall be dell r.d. [nearest on the Sonde shall be paid to the Registered Owner Ma. loss appesrs an the books of the bond R.gtetmr • of 5:00 P.N. local it. a the 1.eatton of the Bond Registrar on she Raeerd pate. New Bond. dellve.ed upon any transfer or exchange shall he v.11d abitgatfone of the County, ..Id. -I., m. eau debt a the Bond. ser ..beefed. .halt be ....rad by this 9 ... I-I.n, aha shall be en[I[led ca ell ,t the 1yand benefits hereof to the sea ..lace[ as the Ronde s....nde red. The County eM the Bold R.,tetrer stye [ the Registered Pinar of any Sond a. the absolute Owner ch....I for .11 purposes, wh.the[ o such BOM .hall be overdo., and shell no[ be bound by any .otic. to the contrary. SECTION 11. DISPOSITION OF BONDS PAID 01 RBp1ACED. w?h v.r any god shall be d1lilld to the Sold Real,trar fez paysenc If the p[fmtpal mount thereof upon ssturicy or red.apclon, or for replace It, t ,mfr or ..canes, such Sold atoll be O led am destroyed by the SOM Ragmc.ar, am ,ouunterparta o[ . sstcl[i to the cet. o[ da.trvccton evtden.ing ouch destruction shall be fuml.Md County. SIM.. 12. _F NOIJUT., DESTROY®, I.— OR [DBT. in .... any Bond shall b ..... .[hated, or be dacroyed, role. or last, the County sty, In its dtaatetfon, I.... am d.ltvar • new Bold of "'*':-r lm temr .. the Bots of destroyed, ails. or toe,, to exeha,, (.r am ea --It: 'Lwnhe of such sstlLnd Som 11 In Ifeu of ad subect[utlnn for the Bond destroyed, stolen or lost, upon ea RegI:t,,,d Owner fucnlahin, N. Cooney am the Bed leg sera[ pro.[ of his erahtthereof and the leas thereof ((f lost, stolen Or destroyed) am ,stlematory Indemtry .m co.,Iytng with soh other reasonable ngu at,._ am ondlelone '. the 8..rd my prescribe ad P.YIN such exP.lo.. a [he boss am the pond Reglatra[ sty Imus. All Dom..o . Mated shall be canceled by to Sona Real sten. if any au% Bonds shall have —ruled or be about to ssmc.. Instead of Issuing , subset cute a.m. the County upay the loss, upon being Ind-mlfled as .for e.aid, and tf ouch aom be lost, 'role, o[ destroyed, wf thou[ esreslder thereof. My such dupllc.te Soma fsead pulsar[ to this section .hail-rati[ute Ortglnel, 'ddiclon.l. cont octal ebllptfone on the part Of the County whether or e tM los[, stolen or deal,. ad Bads b. 't 'Fly flu touts by myon, sin such duplicate pond. shall be entitled to equal e,d pt'p ltfL mte b,.m[It. ad rights -9 to It., o and • and . urt[y to, p,yment fro. the funds, a hereinafter pledged. . to thees less [ant a, all other Bonds issued hat.um.r. a ssy ba carry end/or desirable and author lead or panIt'.d by NIe A .)Orlon o anY .ubeequent r ... lutlon adopted prior c the meant. by racf, Or ay be rnece sect to -ply with eppll.able Iowa, rvla• am ceeulatlonr of the Unload Stec.. and 1ha State of Florida to effect upon the Issue.. thereof: No. R. p UNITED STATES OF ANERICA STATE OF FLORIDA INDIAN RIVER COUNTY 'Es AND aWER RSvf FOND, suits MULOE-LULBLEE•T NAURLU DATED aTe OF UUU pw RECISTERED OWM: PRINCIPAL NIDDM: RNOV AIL NEN BV "ESE PRESENTS. that INDIAN 'I'M totocif, F1ORIDA (the • ouncy'). for value race lved, hereby pro.le.a to pay to the Registered Owner tumid chow., or re,lstend as Sm. solely [,.n the Pledged Funds, ha.tmf[er dot Wad. on the Naturlty Data ep..Ifi.d above, the Prlmlpal Awunc speclfl.d above, ..I... this ware, and S ... r Rer nu. Bond. Sales _ (the -Bond-) shall be mdeeuble and duly .hall have been called for earlier redaptton atm p.,at the ademption price shall here been old, or p ... Wad for, and to pay, solely fro. such Pledged TOM.,s..l'mual lY on ,M of each year, beglming [.latest on the Pilnclp I Aaountipes ltted above, at the Rate o[ Interest specified rlove. per 'Ma, until such PrJ-ip.1 Amount le paid In full. Iste...r on this Bom shall be payable [Toa the I......t parson, date net preceding the data If regi.tratlon .m esthan[lcatlOn of this aom, unles.: x(a) this Bam Ir es,latsted and esthenti_0d ea of 'n Inmrat payssnt de[., In which sent this Bond shall b..r Interest [toe ruch Inla,.st p,yssIt date; or (b) this pond le registered and authencicatod after • Record Dae (he,. I_ defined) and before the nae succeeding Interest pay.ent date, In Mich event this BOM shall bar in.....t fro. such [-term paya.nt dem; ass (e) this pond m eselecored eM an.AmclrelaJ o or prior to the R.cord Dem [lac precedin8 In whlch event this Sond .hell bear Interest [rw the define), .t st(en thin Bom It In default Olin M/ch l.,.It e[hl.haondvhall bar 1.r....t fro. the date on whleh haat at last pad on th I. a.m. The Pr lmfp.l A..unt he,a[, coe,th.. v..h ony appllcabis rede.Ptton Praia with respect themto. .hell be per.bl., Men due upon .acullty or earlier c.d'.pttan, upon pcesantstlon am --d., of thle Band 11 the prl-list c r Office Of (the •Pryln, A,mt•), arpo,.Florldat As P'YIn6 Alan,. Intees,c MnOn shall be paid, when due, by check u11eJ to the R.,late,ed owner More Fla .m address shall appeal, at 5:00 P.N. palling teal it., at the louden of the DOM Reglatrar (heralnafteat d.rined) on 1nS flit ... th (15th) day of the wrath ext pasedly each I..nett peysent data (the 'R•co[d Oala•), on the eaglet... ion booty alntalled by the •Bond R•glattw). , Plalda. a god Mal.tear, bras...It's of any transfer o[ sacharys a[ this Send subs quant to such I.te[d Dam and prior to such IRtatett pays.. date, unlit the County shall be In default In payrnt [ to.—. dr s such Walser prya*nt da". in the went of any awh W#Ult, ark 6Tu1tM tacasaaC •hall Da NJaD'A go the ¢Orson to vhex a. this Sold S` "petered s •:h "{tet """ books •C 5:00pCaallin{ IOC.I tla .t the la-gts O[ the tell a{taint en A r"I Y.1. 4 date fa[ the 11 "1 ,f .veh Mtaul"d ioI ..t ateDli.hed by mHa oiled BY the PaytnA AS -t to CO. 4{1•"-,. Mir[ of Nla Sold .t leas Ch- fifteen It ..ding such ap.41 rata[. _I. Ouch trot l.. shell b..iled to the Pareea In shoat :he Red• •" "{tstssa6 aT the al... ei b 11-1 of be Rei- -[tatter fifth (Sth) da pncedln{ the date of ulllty. The P.C.I el I. Prestw, ti -y, W ianeesC -Nle Sold m pgabL to laful rn.y of the V,lnd ,.Co. This Sold is on of list rerene• bond. outh.[lnd by Its Ce-ty ander the the,try of std !n fel{ espltame with W Comtitutlen and tars of the State at Piazidaa tmlldin{ p.rticuLrly Chapter 125, Florida Scatula (1992}, and 4alutls So. 03•_ of the CooCv..11 a a.u4d ell suppl•sentad, and .char apllrabl. p[st.to. of 1-. The Ago,.•nf.r.m.d .... Suttonal, det and epplrnled tial, ttr Is ie hereinafter "Lna id to the.e '-ntssctoI This Sold t. sCbj... t. all the terra• ane conditions of the Rreslutlon. Tilt. a" to el, at the za two bottle designated .a U—C •M Sever Rasura hand., "l,1.. ,,,-_, ell of like "I, AM tows, esc•p, as to nwbera, done.matiar. ate. of aty r .t inn"- end vrarl.tln. L[ -6algrian. So the W.W. p.im19a3 asomt -f calla. ($ ) (the -$.Mo-). no pr. -ed. of In. SAM.. "Bother with certain other v il.bla footle of the County, rill be used to rattle the Retired Road•, As defttrd in the Ra.lutten, to uqut,a, construct, furnish .tee .quip the Sart.- 1993 Yrojac[., a. daftned In the R ... lutton, to se.bosh ZXSonds ahaowl and to pa I• -It" coats arra ep.nsa relatln6 to tawny of ratinrnt of tha Retired Sonde, all as rle fully at form I. the -aolutts. rhe galls AM the Interest dw, that... A- payable sItaly ft., and a[ vr•d solely by a Its, upon aha pledge of, Na Nat 4aaauu-, a. that te- is defined In the Re.oluCf.C. to be dived by me 000ty fns the Fr—t- or the ASCII cid . *yrs a d•ttwd In the R ... 1.SSon • the •Syrtev. ell cattalo (Caere old pled{ad for N. paysent If the primipal of, Sntell ,and prAat., i[ Aallnd , .n the Bos at p certain earnings that*,,, ell as pr.,load in the --!Hilt" (the -Pl.dgad Fuld -frame frame I. rade to the R ... 1.Clon for "rat AM t Idit lana upon .hill, wTtain - Irl,. son -rens. pledged undo, the vctao my be uja...d floor .wh pledge, and for to and condlil— upon .htah eddltlonsl boMe harm, . sent., or pa[Iey %Irte up.. end rlghe to pay ...I fes .-h RI,dpd Fonds uy be Sowed foto Has t, tial. III, Bond dee. m nstitu- • general Irdsbtadnaaa of the County vtthi. the . -tris of airy —1-1-1 ora —l" provision or 11.1-1— It Io ."..IF +geesd by the ReSI tar oven, of this gond Chet sOth Rag It—ad Mnsr loollOlAar have the right requite a ospel thea Cols. of the ed valaru raln6 pear of the CowcY for the Ill— of the prl"Ip•1 of, lot", t or p"tis, if any, - this BoM or the aktnS of any other paymnte aeltfied by tha-a,luiton. It 1, further agreed be Mean the County and the Registered Mil,[ of this good that this good AM the Indebtadnaa• -vide—d b•r.by shall uvwcieuxe a If.. upon Only She PLd{ad tlmds I. the annex provided in the ..i.tl-. of W r•deptt- prl- shall be r" only upon —CAM., of tach Brod In a. h -p for Bonds of .uth.citad dematnatlow he in aggregate Principal ensu., equal to tuaradeson ed portiof the prlrcip•1 —, theresf. Bort— of -y-deptit. shall be Etre" In She ..n r pnvidad In he Raa.Jotton. M the dot. dest{trted far radeptlor,-Itahaving b... Pr..I... s .,...Raid, aha aoi•y for pales- of the p,imiptt. Pr.vis, if say, and rued {nitre*- being held by the Paying Agent, Interest onthe Bond- o porde- there.[ s celled for ra0*ptlon shall I ceM ruth Banda or gollf., thereof . tail.. far rad.pttoo -bell C So be entitled to any ba -fl. or — he "B ...try Color the -aoluc/en, and the urns- of rush Banda r po-Lns thereof a called for rod•ptlon *hall bar* no right• vlth rerpect ,her.; to III= pay.nt of N. prinatp.l m he rad.sad and eCo— A, lot..t M.P.N.-.n to tn. data [lead tar radaptlon, topth.r with the ,d,,p",n prrtus. it Thio SAM shall me be a134 or bens. obligatory for any purpose or be mtltlad to any a•cuilry or banstlt uM-I the-aolutlan until the c rttil-n of autlrntieatloa nano .hell have been *sacut*d by the anal -Senators of An otthorl sd repra"ntattva of the gond-Statesr. IN W"ESS pNEENF, IMlea Rtar Cpnty. Florida, hes Soloed this BoM and has -wad the ganal to be a -tod by the Chattloo of the Board of County Corl.slanacs o/ the ted arrested by to el.ek of the Board of Cmnly —i..ionra. etthar sands,Ilya .Ith their faretail, aIgCdttoes And It, oftietal .est, o x [ac.[otta thoreof• to be atttrad, tsprse-ed, imprinted or eth•rvn• reproduced harem, ell as of the _,,. day of _ (SEAL) INDIM Rism CpJNTT, FLORIDA By: chat—. ATTEST: llm (To be in-r[ed shore appropriate on face of bond: 'RIVES—1 i3 NQReT Kart TO Tug MMU 11" Sims OF THIS bmD SET MM OH ME REVERSE $m Sam Mn SUCH (VAu MVt5I"S Siv M FOR AU WRIOS" HAVE THE SMR tFFECt AS if Su FORM ON THIS SIDE.') The bond. a e Irwabl• only In 1],. fon If r.gtetaead bond-, stth—t .upon,, In She d .... lnatloa of $5.000 principal —It ar —y Integral .ltipia thereof. Thi, bond ay be tranaf.... d only upon the books kept by the Bond RapeStar, on behalf .f the County upon aur-ntler hereof aS the "imlpal oscura a I_ gff.f. of the her. Rut—, vlrh an ...$&—at duly .......a by the Registered Omar or his duly cttorltad attorney. hot only In the m .ubjact to the ll.l-tl.a and upon pxyeanr of • rw e.fticlent to cover ..Y tax, fa or darer --tai the,, that say be in.... 1..omaet S.gstth tach transfer. all a pravid.d In the R ... i.tl—. Upon ouch t-nef.[, there shell b. ex .0 tad In the vasa of the transfer... aha the gond R.gt.tnr .hall deliver, a. ... IF as antalm—ne I, theasm..$& a n" fCI.Ci,tlt steed bond f the —Its. -std ity and Interest tet... Shim eond, pr pa emunce Caro Y.n In likesooner. s.bjee .old C-atti.ns and opo" y.y.— of airy —hh III. Band saybe .Md a old aril,; of the pond R,gla-r to eachanga fd, an .goat agvwt. PCInCIP.l al, .f no. fully rep - .tad booda of Sort read dert.sinatiaa of the tam art t a mt"Ity 1M Interest rate al, this bond. The Cooney aha the SOM Aa{"Craw -ball roe hes req.tr•d . issue or to i. ,ugtng • Periodebsgtmtng o. the el..a of Sou Ituaa one thelfifteenth (15thred for ) xt pre -ding any den of aeiaetton of geld. to As redacted and andtnd at the .lore of Cl.... on the day of sailing the applicable mtic. of xadeption, a her -I. -ft., provided, n t -ALtat the at rev far of or exchange any portion of any of ma good. eslatadfor .d.aptnn ..it aflat to tedaption data. IC is heathy c•[ttflad AM re.ttad that all • onditions and thing. x•qulxed to axle[, to hePran aha It and be p -,(.—A prated tet to and 1. th. See— of eh 1. son d exist, hart happensd and have bean pe[fonad in —gine. aM dm ton See— 1 Cl.e . r•qutCed by tho Constltuti- aha lea of the State of Florida appll-bla thea". Thla bond 1. and hes .11 [fix ,—lilies and lnaid.nu of • negotiable ins t resent under the lava of the State of Florida. it .... I [adaption Pr J,J,nsl 1. lou of any, undanry C.."Clan of t. soMa, t• CwmY ay p, rChar. Sonde and teodet the. to the Paying Agent, all a .- fully pCovid.d In the -.chit ion. If leas than all Botox of any ons --try I. to be .4....d, the Bond. of such aturiry to be red .... d shall be dram by lot by the Paying anaAgate For the purr.... of d.,".., • Bond of a dem-tto. 1.C,C than $5.000 atoll b. rested as representtog that nolle- of SoMe whichequals [he rushee. brat -4 by divlding the p,lmipal count thereof by $5,000• est $5,00. portion of Auch SIM being aobj— to redeagt ion. In Co.. of partial radesplion of any gond. pays.nt CEATIFIGtR OF AUTHPMICATION MO CERTIFICATE AS SO OPINION It 11 caatlfled that: (1) this goal is on. of be A.M. deaeribad in the .[thin-Banti—A. -..WIS..; end (2) The teat .f the Opinion printed upon this gond to a trw and correct copy of the to of en olt$l.l pinion t.-ued by tlead and dallver-d on he de to of ortginst d.Ii,..y of, end payoens for —1, Some. which Opinion ison fila at -or Cormtata trust .(fit. re[atred to 1. this mo. IS—. the e -a say be tnspeetea. As ... R.,twtt- Autho.l-d Rape -annoy pan of Resntration AM —Instillation: VALIGTIOSS CERTIFICATE role gold la on of She bond. shich ver. 1.114-1 end onfinetl byJudgeent .f the 1111.111.11L of the Nlneta.nt Judlclal Circuit of Pnrida So and n, IMI.I River Caunty. Placid.. -Mated on _, 19 rnan•n, glom If C ..IF 1.anann.r- of Indian Riva, County, Florida The f.ltevin8 abbxavnctna. viun Heed tn:ha tnscrtpsion on th- face If this gond, *hail be <ixteed as though they sera urine" not So full -mrdlog t. aPplltall. laaer ag.ntl.n.: TM CON as anent. 1. YN1, 011 NIN ACC C—oat.) TPN flit11 .or, "Calls by me —Calls. ter, initaa tgtmrY JT TCN as joint""ante vl th undo Untfers Girt$ t. Nim,, right of a" .,!hip Act .t tStete) Addltlowl abb—l.tt— ay .led be tied th.oAh not 1. list ebur.. ASSI,TIIVT F9{ vAlll{ R[Ct1VSD, tM undereipnd elle, a-lg- am sten-(. to (Nr am amnea of T[aahra) (Sag fal Sorority at Teapryar Identification Neer of T,nefeselthis sand .M leas hereby Intrxobly cwaltt. and sppein, as his .Seat to (slater this SoM on the book• kept for [egl.tretlon htraaf• with full polar of -rb.elcueten in she Steals... (4tMta, of Tt-f.... I het: ,lge.ture guarenca.d: (NessaofRent.. Tract Gopa7 Z . Title: ROT[Ct: No aroaf.r will be %{Mesad and no ns, sand ,111 be lease In the er o[ thr irwtt. unlet the sl,rutut(-) to ehl. u./ga.nt corrupana(ai to the nw(a) ryPearairy 11 re6tt'red owner upon N. [see o[ the within Sand to —1 Xtlrui.r, without -1-g-enc or any be,&, whets... and the Social SaaT/ty — Federal Loplay- Identlftotion NTransfer-b's of the Transfer- 1. supplied. Bis-_(.) o[ the Tcwf.car(a) wt be V.ar.ntee pad by • mbar fit of • rJor .tack ...bon,. at a crr,.1.1 bank ane I— coeIT. )Wort it appro ria -1 PARTIAL 6,E012IP[i0N PAYMFMS .th cited Offlear If Principal heia.ce of Bond Parrot —ret Pat A Irl-c—I Unoefd SM ON 15. IMS NOT GENERAL OBLIGATIONS. no Sand. shall not be as wcltwc, general or orset obltYttoa ane a pledge of the faith, stall[ o a rin, power of the County, the Bate Of Florida or any political .wbdlvlal.. thereof or an 1Mebtdna of say of chs. a. 'bands' within the ..ening a the Cwtitut., of the Stat o[ Flarlds, but .fill be spall obllgatilm of the CantyW yabl, welly froes and •sand golly by a helien capon and a pledge If the Pl.d,ed FNmd., No Resist ... a owns, bell t. s th. It,hc a coapt the tea of the la v.lorse c -In, p -or of the County, the Stat. a[ Florida at any political tubdivislen the ,ot, as [stollen in any fore of say real prap,rry (2) A c11t(tcae of the chief financial officer of the cannary as, -Port •at1n, thot the County hos ,Ubli,h,d sM will -Intal. , accenting of ail ['vrmu. and •epos.. In comuccfo. with eny such 1m.prnd.nt ayats or with (spat( to rah I.Pact F.... 6ureher,e-, Bp.lsl Aea...sent,, Fr bc.e Pea, Pates In Iter of Pt.aAf.• Pa- or other ....lpt. •M '-venae to be ,tested, [pact l.- the PI.desd Funds; and (1) unit, consent of the sand Insurer. All or any, pact of Ne c ral[Icate ga utted d.r aIbpa 9I.Ph (t) of this paragraph my be ,ndsrsd by co..nitfry Igi%.rm. consultant, or other peseta with r•qutite Imwl,dg, and e,p.,i.m, who are not reasonably objected to by the sand Inures. smi.R 17. CDYDrANr4 DP ThB COUNTY. Por oro long as any at the principal at and • 1 t. an ay o[ the sandn sands "It be eutstandlnS and .paid, or ail slur• ,tullrhrv, been set •part in the Statin, F4m h,r,Inso.r created, ruf[l,isnt to Pay, when da, the entire l imipal .a t of the ROM. rosining unpaid, together with inter•.. • t Grad and Intereac c to a ,— thereon hr ghInch P. •yesnt date oc well 'hep.ovtlons If Section 21 h ... If h— bean 't l.[l.d, the CoutY ct.nsnts cal th the hots. of the SIM. [.awed pu urnr to oris R..alwt .. that: A. REVENUE FUND. All Res.aea ,bell neon receipt th ...I be don `c„t' /n the •-ser end 3w or R.I..r. fnM• (heroin rahe •R..._ na Pa•), , hereby created and tail lehed. S. DISPOSITION .1 REVENUES. All R,va.a. on deposit In theRevenue Pond In, ,ball disposed o[ by the oun cty •• n..dtd ora , n q.td hent. only In the ow folltry ala, and In the lollalnE order If priority: (I) First, the Coaall ty ,ht . lar In ash -nth t he Operation end Naln[tage FUM the scut (paired to be dapealted the':[, to pay the operating Reps..., da or to b ... I. due far ..ch ..th. (2) S- td, the Coity .hall deposit 1. each .Doth to . fund tob, known s the •Vete, end Sewer Rav'mu Sondra Sinking NM - (b , In Ne s."'ki • pond•)• which t• hereby created and ,t established. o •,cath (1/6th) of —1, a- as will be e[[Iclent to PaPayInt.re-c Inhe sande ,. the sa.e shall b -cess due on the n in,car, p,yrnt data, together with the stunt o[ any d. flcle.ly 1. [.lar deposits far Interest on SOMI, end oa•evolfth (I/12th) or he principal of Bonds —tuslry on the rest principal psyemt data with respect to the Sonde. Such deposit shall coke Into saloon' the :W, 1f any. deposited In the Stoking )End out a[ proceed, fro, the alt o[ Bonds to pay Interest th.sean on the Fontein. Interest pays; dot and the [.duction fn the Brat o[ tea inrt Astable on Te, Sonia on the following interest p'ym,t data •itrlbutebl, to the purchase and came, of To. I.M. In If.. of undetary r'deaptlen, l[ -y, In •mltlon, the[' ,lull be deposited in the .i=4 Pum stats .gfttetenI to pay the fare am chargee of the Prying Agent. that(., to pay the sand• ane the Interest thereon, or be entitled to pay,ent It each Principal and Intl..' ft.- any funds of the County other [hen the Pled,ed FLM.. SECTION 16. SECURITY FOR BONDS; RELEASE Ontd `ERTAINtPLEDan `ED1. RonENUES. The be payamt o[ eh. prmel,l of. Dtaa.. if m orad [occhvlth .gallY end ratably by a pledge of and • 11- .,on the P1.dg.d Nnd.. thehe princtool f (P by 1— if any. Din g. thelntetstlan the N.M..to the pay.ant o t principal • • an t Nothing in this Petolutton •hall caacicate or be ....t -.d to cenaeltute nv.yeIt a[ est6•6• of any valet .-Pply or 1 f any disposal [ she [on6o, or of any w,ter of ase.. eye[•. Ivpraeesg• or any pare o y e Ntvith—MI., any ether pe (.tan of this I ... lutlon to the c-1.1. the County say, by resolution o[ tM Board [lied lath end Clark e[ the ser^, en`:;: and sel„te fro. the pledge and Ilan ,,.led by this R ..I'tlon, p •Revenue.• a asd In ehls Rtolutlon shell no long•[ I -l'. the ac.lpt am of rah. County dtI-d hse the Un1[.t Ihogea Eo, the ... of and [vice. furnished o[ to h. fumlahed by any vat's aM/o, (ver facilities s•vtl[ueinb • phyltlly Independent ay.... of the County or any In— Fee.. Spaair I A.a.tunta. Surchar6-,, Fraghl.e Fara, F... In it.. of f .nwbi.e tea doother ar. ,t, and nvenua (other tth ( Unffam C l eAI) tMMn.or .hall ea < colon with the Sorts, . Io t filed with the Clerk of the saard the f-11-In5: e. (1) A [ alIf an independent fires at as tabt•eape[tw red sepanelblliry t1(p e.ei�a th,e th book• .M records o[ [h. County relating to the collection and ,colo[ of the Rev.a:.s end the Op,ratiry Gpanse. hove be 'Matted by the. [or the Ptse.l Year Irdlstl7 Drotealry the dale of the Proposed raises. o[ such n Ipca and [•lama- hw the plod,• be,.undar or for any re.le. (12) e.lueeutiva -neh parted cue of the eight... (IS) c utly' . es entbt f.dlstety pt<.diry —h date; (it) ....Ing forth the Revta., the Unifore tear{.s, the Oper-tn{ Eap'n,e. and [he N't l.ver.u. far a. .matted period ,(trod to /n (I) above, IN respect to which .ah .... itlt[. 1. ansa.; and (til) • ling that the Net Rmmaes, .6j..c.6 to Sly - effort co the proposed rat.... of such tclpt. and .I... a I[ the .ase had occurred ac the b.` int"S of such audited period, were es -1 t at lel 1.20 ties. he largest aero of Principe aM interest that will rt , and btal du• in any Ftatl Year th'taft., o all Rands uthen ou[aerawil.g• For pucpo.e. of (1 1) .hove. (A) eats•., Unit-- LTsrV. sM Operetta,Sspans•s lay be, fu,ther ad,_,,, so as to fairly rept.enc th. opar.tlon of cbe Systa, psovlded that the count am • detailed reason far each .g adJu.trnt le -et Earth In .ah <earlfitte; (S) Net Rewe( .ay •tae be sdjuai.d for (I) the pro [ores effect of r• s l.plIal ted It— to the Propo..d cel...' If ouch ","Ito and ealaae. and (11) added to the S,t.. d.,I., the t t period; and (E) any ca• ad [ th' feaear of a Res.N. A—— Credit InstrutN(herinsEter. defined) s, • .talc of . draw th ..n, 11 epPcoP'tca, .holt be added to the principal and Interest Patch le an ROM. 'e deter.I,. coaplle.c' with he fo..got,& tat. (1) Third, the Count [.hell mPo•lc In etch aanth Into an t fn the 4lnklnE Fundo be kam . the •BOM A.oI Icarian Account•, hereby created and established, or to frh (1/12th) of the principal of BOM-, if eny, orbJ—t a rnd•tory all far Zd-aptlon on the ..at paln<tpal p•,aent data with respect to the ,do. Such deport -hall take luta account the principal sawwcar of the Ten Banda eu Jort u.dat.ry call far ,,deep tan an 'h. n t hrinctpal payees dot tthet the County -hail haws pu.ch... d and and -rad to rhe Paying Agent In It.. of acndatery r,d,.ttiln on -lath d,to (or and t the e t p.ahlblcad under the 'r,e of the and of $..do). It any. (4) Faurth, he County -hall d.po-(t Into an accturet fn the 41NIn6 Fund co b- knom as the •R...— Account•, which1. hereby trod and established, a•.[ogeane ctant to lr.e the a d.po-lt in the Rees Account to the Rall—at-IcIi R.qul..—stn AIu to be ep,,111 d by aubaorwn[ resolution of the county -y be d-po.'I.d In 'A. R,:,m. Account out of the p ..... do of the este of Bond.. P.ovld.d, however, In no fiscal Year .lull Net Rows. In care.. of twenty Part— (tat) of the Re --sue Accear 4qulreesn[ be required '. be "Past red 1n the Rtme Account. accept as -Y be required by ...action P or .,bectt,, Y below. forever, the fo,e6olng seventy p.rtnt (201) ila1cat1- .bell a apply t the eatnc that principal and III .... r o the Sardis .. old ft— the kea.we Artor then 1- t, percent (IOI o 1. delta f. rot -,kat vola of the R..._ Account. No EurtAor Mposit sbell be ..qui ad to be esdo loo the R..ervo Account ea tory •• there shall .-ln on deposit thealn II -I dlty any Reserve Act.— Credit Instueont se d .... ited below) a tea •gal to the Ism• Account Requtr,m,t. Thewalla• o[ the R ... rv. --t. IglMtg Inveateent on deposit In the Reserve Account, -hall be Mtemtmd aurally • .a,k.c an the tint day of the Flrc.I Year by an independent fine of testified publl< accountant, who -y be the accountant for the Ceaty. In -cordage with g ..... lly accepted ..scum(.{ primipcaa. Natrlthatndln, the fa..going qn-Wane. I. lieu of. In Mole or In Pert, the aqul,d,J.p,atr, Into the Reeser, A<ceunc, the County -y to be d.paited Into the R...rw Acetum any If the mtlalng (each • •R...rve Aunt Credit In.t—nt•): (a) A nutty bend ane Ituerag, policy toad to the Pay[.. A6.nt, • agent of the SOMAoider-, by a o,:, licensed issue Insurance Palley Baan—in, the tally D•yrnc of debt -ties an the B.M. (a •.unlalpal bond intra), if the clot -paying ability of the I,....thtorM' t hall be ,.red 'Aby 3[sMard 6 pact•• Corpaeation (•361•) and •Ma• by ..adye Invaerers tilt (•Naody.•); (b) A aunty band or Ine—m. policy te... 4 to the Paying Agent, a agent of the B,Mhold-t, by an entity other aA•n • vale l Pal hand insurer, if the face and eab.tnce of .ah In.tru.ent and the tear th.,eof .hall be approved by the gond 1au,.; o, M w W cendtcienal lrlevtaba loll" of credit leaned to the raying A,... A .gut If he Mndheld,re, by a bank. It ruch bank to ,ted at lout eMe by Shy 1od -Aa- by Roody'e. AM such Is am Atcowt Credit Irutrwsnt shall .at the furths, tart and londitlan. den[lbed 1, s,b,,,ti,n Y bel. and ,hell be payable Or raillble to be drewn upon, as the car my be (upon the 5111,{ of mitt as r.q.1rld tMrewder), by the Prying A6ent on any fet:dlbt pay— dere en Ml'h • deficiency .,let, Mich cannot be wed by sty In any athIT fund aT A .Una held pursuant hen to ane available for each pOrpOm. It .bull bl the duty of the Paying AA- to, and the Paying 1g..c .hall, .11htrtha, ,th,r1,atm or direction fru the COwty. A.uma the n...mity for a me11 or dear open any Rarn Aeeount Credit 1.atrvsenc and provide notice e the t.. of the Rare• Accowt Cradle Inotewent In accoldenca .leh LI. tau rot lair then three dey. (or nth appr.prfa[• ate parlod ae .111, Mn covblmd vin the ',all, ,[ required paysent under the III— Account Credit Instrtwnt, • re pay.enc unser the Ite"IZ Atowt Credit aattwent o r nese the lotest paysent dere) Ill," to each Intreet peyrn[ .t•. If e dlabur..... Iv ode uw, my such Its Account Credit loac_t, M• Cow'y say reiutt• the vs.I— Halt of sucb Marry. Actowc Credit I,e.rwenc im•dl•tely following each dl.burlernt, othsrvte chs as of credit [ rad the Pa.— Attewt requlrernt toe such R•.•rve Accowt Cradle In,trwen, shell be approp,lat•ly ".doted. /brthersre, W County my at any rise and fret tW to ter awe to be depae/ted !n Me Rarn Account 1111, • Rl: r Accowt Credit 7wAsan[ trant AM esus. An appropriate to ba vlthdran I... the 'm& Actowc and tlau.d to chs County. Notuy. in the Learn Account .bull b, wed only for the purpoe of the paYsent of unring p[imip.l of or int.uc an Saha Mn the other sorry. I- the Stoking M ate lnvufficfenc th... for. and for atm pwpa.•. -- a upon Me valuatlon of the Reserve Acton[ In each year. If Me.nye applied aM allocated to the IG1arn Aeeowt (ee.ept the inomdnt I— thereon) • sed the vol=t r.qulred, such excel say be wlthdr,wn and re1!.:.., ald to the Cowry. If W Were• Arcowc requlrsrnt .hall .t any tiro be sA[ls[tad 1n Mala or S, part with • quallfyini letter of ...dlc and h acre[ of credit Is abort to ..PIT• o newt, the County hereby aorhortea end direct the Prying Agent to draw upon such !acts of c,•dlc prior to It, mpiraclon o nlmclon [ the .orraqulsed t fully [ural the Rmeeva Accowe[requlrant onle.l Ax .flails. Worn Accowt Credit Inetrwenc is In Piece or the barn Ac<ow[ fa .th.rvl.. toy f.wa a tet required aunt. (1) 'I'M, apply sty. in the Weal flora to the P'"I., o1 ... debea t rvlce se and III— requtents of any oblig,cfon. If filCowry Mich have A Ile. on the Pledged Nod. J -ler red subordinate to the It,, of the goods. (6) The bell=e of anysry, amyl,. 1, the R•renu• )Lnd alter the Above required psysente have ben Olds way be deposited that Unif the theryt lee. Op r ting [spawns. ra aufflcl.nc to pay (a) ose boWred Percent (IN$) of all required d.poa/te Ln[. the r.Arv• Accowt, and (b) or huodree percent (100%) of the sort o[ prtmlpal and Interest bectlng dm In such Fiscal Year an the ROMs For purpalu of this .ubuetlon, any asunea owed by the County to the Is,— of . rest.. arr,unc Credit lmtrurnc a tote of . It,, thereon, , appr.prilt., .hall be .edea to the pal=tp.l and 1=rut payable On ten. Rand. to deism" ccapila=e with this let trema. F.sDORs AND RECORDS. The County" keep proper book,, . e,de and owl, .hewing correct .M ""I"' "trill of all tnwactiom of the County relating to Me syre.. 'M ""I"' Owna o[ the Bond. shall have the light at all r. .mbla time to lwpecc all books, record, and a t. of the Counly salattng " Yea syst.s. C. AIdUAl AUDIT. The Cowry (hall ale,, at least once s year, ulthl. 110 days tar ell elms o[ tet Ptt3 ria, c e the book., record. and accounts Hieing to ,he 1;:0 t bA eudlced by . Indep.Menc fill of teltlfl,d Publlc oweant. A copy of -h .—I Udit. bell be furnished to any Regl.cerld Amer of Me geode wta .buil hese ..gw.ttd In wt 1[In/ that • copy of .uch audlte be furnished his. H. 110 IIOR7CACa OR sA18 OF Tib RYST01. The County .111 no ..It. sellIsla._= for the GAIL -d tharellos. Or th,mis, ...pttnai hereto provided end will the act thereof, oa.It. 1.m1 or nth.raise dl.,.. of any aubarmtlel Pollan of Me fiy..... ,.cert as p,.lded herein. Tha Cowq my 111, lost ar Otherwise dlspo.e rf any of the property coaprie/ng • a.raotl.l ",till of the $yes in the event the, (a) such proparry 1. 4—ralted by ....hitt" of the Board, Upon Yea re meawtlon of the patty Adellil—cur and the cem.lta5 mgw.r., t be m t,/Ar ........y ,r w•fol or profltble Lor the sy.te; and (b) the sale, lease or other dlsp,altlon o[ .uch proparq 1. debnlyd by resolutlen of the board, open ncoseod•[lon of end eamcy Adatn11trto anal the Con.ullty e.glmen, not to Isp.ir the ab 11 try of the Count Cto cosply during the eu,[et or any futu.. Fiscal Year with the rata c.emot .• folth henln. Tia pe«•ads dett.ed !lal any 1111, tea or that dl"ttl. of . etAatn[lal mretn of the IT—.hall be wed for the ,st Ill— of eu[eunding Row. Any other precede ..l1Ad [..a the ale, leu• oe .the[ dlspts Iti.o of • "Ill, Of t1,• /yetis .lull b• pled in n .pprop[at food of he mun,y rlaring to the ea_.I or nple.Aaene o[ the $Yates, retire ,tided, however, .11 or • portion OL aoy such p.or••" say be wed !as the them,[ of o .taoding Row t[ wth„fg•a by resold., of w meld ,pore the t„r.M.un ,f the Canty Adelnlatrator and the Co,111tt., [nglseen. I. plD -. far an long 11 aro of th• SoM. are oibnndlnA, eM u t1,. •runt ...t(c.bl•, aha covnry 111 c try adegnen un and .1Metnn lmwa=• n all bulldlnge, ,[octan. and nth.[ appropriate Properties of the /yet which Ole lIbj.,t to I... thl.5h Ll[• or wlndton, will carry adequa Publ/c liability tm..anc...M will ,M.Twi as a.y w.Fe=e of eel kind, and in eeM sawn -really talk, In rho oBontlOR o[ .111ar aelll ties ond propartlas In [1o11da. My .uch /asuTaroe .hell be carried for the bntlt of Lot I I .peelel fwd to be known as the •a..., and eater R....11 and Pepl c....r Yund•. Mich le hereby .,..,ad red whIM shall be ..ad only for the pu,po.• of paying the ,at. of rtemlen., .le.gats, e[ addltl... to or the .pl.c.m of capital I- I! the Sy.tsv, and for em,g,,, repairs thereto or my mod by the CouncY for any lawful purpm.. No further d.posln co the 91riking pond, the bond sec'...u.. Account o t1,• P•serv• Account shel3 be rrqulnd Men the ....agate am. deposited than In and . stn at Ire' egml to the .w of ail of the p,t.tp.1 and .Israel then d.• aM th.r.aftr b.covtng due 1. all ....Ing years for the gable then ,ut•tending. C. PIyJ)CED FUNDS AND IHVESTH M OF FUNDS. The SlnYing )Ltd, the good Aso.'lration mcewc red the III— Act— hall be P1edg.d Fund., shall attcut tfoods for the port,.... ptvlded har.ln for I.M fund. end shall be .ad only for the puryt.. and In the "mer pr,td.d halal,. All ..eye In all fund, and • created or established hereunder mall be c ntlo....IT ured In that:!,,:, t[by which depots of public fwd. a required to be orad by the s[ the stere of Plortds. Noneys on d.poatc to the Rreme Fund and the Stnk/nb Fund (eac•pc she Rarn Account theeetn) say be I.— led red relnves cad only In Authorize• Im-ImInts a lain. not lair the, the dal n Mich the . ,eye tare(..111 be needed for the pulp.. of nth funded .._Ya en the Rrern Accoun[ sry be I-ml,d and relnreced In Atn.rl.ea tnva.tante at .ring n or later than tan (10) ye.., f[ov the data of p.,Mare. Ee..pt uy be prevtded In • aetetlen adapted In < ,tion with the l....nca ,f AEdltl.ml P..cy bond., soy and all incove r rived by Ma County floe such im,,tve.is small be deposited into the Rebate Accoun' h ..... der to the slant required and the tree ., If any, into the R-.—. Account. D. OPFAATI,N AND NAIMFMMCE. The Cowty will valn[tn the Sya[r a d all part ehereo[ In goad e.nditlo. and .ill operate the • e to an e[[Iclrnc and .viii m mking .ucA rPntna for rq.IDoen[ .. for r .ala. rep.I,. and lapis _.t a. vsy be proper for the ronmlcal op.raclon end valntena=e thereof. L. "M COYENAM. no Cowry nett it.. eecabIIM and—total. -h Unlfon Charge, and, as ppllrebl,. such Surch.rgaa tape.[ Feee, Special Aaeee.sents, P[anchl.e Fee. and ... In Ileo of Franchise Fee. I. connection .l th the sande shell 1—a.Me receipts ee ill, live to lc lose Men.v.r "neceeea bellcol.ocael to always pr,vld• either o[ M�following. rY. (1) Unlfory verge. lees Operactog E.peme..ufficlanc to pay (a) em hundred percent (1001) of all required deposit, Into the Reserve Account, end (b) one handled twenty lose.. (1701) of the o[ princlpel end Interest be..tng due n aueh Fiscal Year to theS.—owt.nding; or (1) Men the Revenue in.lode r ce 1pt and s s In addltl.n to U,Lfo"v Chargee, N t P .c..a In each Fiscal Year suf!Iclent to pay (a) one hundred percent (IN.) O[ all requtred depeelte Into the Re.erve Account, and (b) o e hundred ' n[y P.rcn[ (1101) of rhe "'.or of Pll,ctpal and locate,[ becoetng due 111 nth Fiscal Year an the bonds outetaoding; Pr.tded. hour. the Registered Ownen of the B.w. All ...eye --ed (roe losses under ray of such Imuran.., ezcmc pubitc llablllcy, era h.reby pledges by the County as security [or eh• Ronde, unttl and wire such proceeds a sed c r ..1, be les or deneg. for Mch which sup..... d. • tivAd, In .hLM ev.nc therapetrtng of the property denag.d or the replaeemot of the property destroyed shall be tms'lld within • ro • reasonable tiafter the r celp' of ruch OrIca•ds she .hall ......d on • r ...... his end ...tl—c.. beats. J. NO ten[[ SMVICE. The County will lot render Or ore to be rendered any it..u • of any • m of the Syetev, no,will any plat .re.list ret.. be .stabllahvd for leer. of the save class. R, MFOKEH M OP COLLECTIMS. The County .Ill diligently enforce and c.11eet the —.... end any other receipt. and ....... pledged her11nder..ill take ell steps, .e[lons and pr. s ding. for the n(onmant and lolled., M•..of ee the __ shell baro.. delin,m to the full stent paltted or n[hertced by I..; and .111 sinal, "cunt naw with reap,,. Ment*. 111 vch R..e and other char6ea ensu, • collected, be held In cot co ba applied a, hent. prevtded •red not othervlee. L. 0.[NEDI[s. Any Rsgl.tred ower my by at, swot.,, undasus or ,the, pr,ceedirge In any court of cove` rent jurisdiction, p,urscc red .fort any and all althea. Including the right v the .Pplint.*nt .f a crcelver, exiting under the Ire of the State of Florida, end say enforce anJ ..opal the psr[onawa of Ill duds. r*q"l,,d hereunder or by any applic.bl• d rule. to be pee(orved by the cane', or by any Officer a�.r..r. Nothing h•leln, h..v r, shell be comc.ued to gr.t to any Meglt.r.d Purer any It.. on any property of or In the Coun'y. N. OPERATINO BUDGET. On or before the Irl day of each Fiscal Year, the County .hall adept .n ,noel bud6ec for the III_ [or the e.s,tn. 1,...I Yea. Mich Mall Include •budget for ..•... to, Expewt. The Oparet Ing Erpnaee, Incurred In any It...I Year .ill not reed the a2mbl. and the trery avount. ,.q.lnd [neuro, and the c..ty win t e...nd . ,,,y the Breton rot the .p...tic.. mit•-nca lJ rept" of lheeSyste In enc of the ret pnI'd,I for the pu,p..a In the annual budget for the thenxc FlaloYyf e.cepc opo, ..olutlon of aha gold declaring the( such ......... naee.eery rot eeM oyrat`ic. and minemanc• or end .yens. awe 1[ the bud`et dlacl.... that 'he setseted Revenue and other r fleeal YeereCeipts pled,ed hereunder. If any. will be tneufflelnt duringnnM F! t torah herein, lh: C u lyfshalthel [orthwlthg[rle• eheor t ,tfsrsaMccAatge• Iap...d Wth aspect [ the aye[ v Its order to ore ewh . tlmteJ Jef 1c l•cha ens to (ply Ill. 11'. r • n Thar. hallbeInclulad In the bMg.' as a t sees'. o[ the to 9 14. for vMen.ld.,Iy •reple.....t sl' the depreciable e.P[,.l N. CONSULTING FNCINgr1. Th- County 1131 annually retln the Cveeulting En.ItIrs for Me purt.se ,f pr.vldln6 the County with cost,tant nglne•ting conal .1tA reepAc, o t1,• econo.lct and .f[Ic ler ,Pastil, If the en'1,• and AAnr ey.tu of Me Carty and In tonmetion vlth the uklni Of capital apnveeent thsret. and a rat and rapleceeante tbIT of. Th. County say, hove *,ploy .ddltlI"'l sngi.eere .t any tlaa with 1.I.1lon to .pacific .&mala& end .potation problem .rl.ws In c. -action thsre.lth. 0. 5 To the full ,tell Permitted by ".. he County mill rot grant, SYSTEM . 1, 1*11, 1...I, ... I, I all.t to spend any frx.rht.. - P. -Il .I any I.- similar to the System within the M-111 are, If the Sy.t- P. ISSUANCE OF ADDITIONAL PARITY OBLIGATIONS. Additional Parity Bond.. partly Eros the Pledged Fund, with the ..do, my be Issued f... ter to it_ to final,, any portion of the Go to I I *=I," dl,, ti.Ltic to the Io[ any in ,h,.I..II d..l ... d by .... 1.-o of the Beard to be Par' of the System. I for .f.min. Pulp -1. I. the -- h-1. 11.11uld. Bef.l. issuing any such Additional Partly Bonds, thata hall have b..n obt.,00d am filed with the County . I.,tific.t. If an Independent fit. of certified Public a of suitable ,Paris... and -p-ibil icy. "i a ,ting ch T he b..k. and t. orae of the loutty relatl ng t* the ,elle, [len am rmc.lpt of the Ra -m... In. Uniform Met.- and In. Olac.ri.. E.P..- have been audited the. for the F1 ... I Year Immediately plot *dl", the d to of ..Is of eM1e p,epotad *bllgltl*", or For any twelve (12) ..,h paned out h , of : d bl eight. (I. ) moth. immediately preceding the .l.,,t proposed ("I I-Ih the --. I". the Op .Clog Pan. in i� - Beama I'd the Net __ for the miced period x.f.-d alth ...pact to Mill, much ...lift.... I. -do; an. ( Ill) -II., the,: lich I ... Im the ... y .. " N.covenant ..I forth 1. Sub ... it... above; and '.dpl""* equal (b) at the H - JR " led., he ,!n,,flr pr.aldmi. .:.d to lout 20 titin [he let,.. as _ IT he I PlAnct'.1 inter. It clue alit u bac due 1. any Fiscal Is, . ..... -:�_dlog. III I d I I, the plop ... d I r=111al "Ilb Illy MI: .. Man the U--.. incIms receipts Im cous in addition I. Uniform [he the Uniform Merge. I... OperetI.. p . Is . I. adjusted am hereinafter pr-ld.d, lare equal to `-I.00 the largest aunt of p"in,..u[ ncl,.l and in... I . = 11 chat ,n: mo - due In any Fiscal Year th .... ft.r on .11 Unds Including the plIpolld Additional Partly Bonds. For Wr,ls..R , ( b, (ill) of (I,,A) - GlalgeI.a Us I . to It cap ... tt� Uoif. s amP.,.".g E .. of the System, p may III adjusted fatly be permit..provided that2secult It , detailed r ..... for each such adjustment is act forth In much c.filets; (5) Net Revenue. may I.. be adjusted for: (I) the pro force Iffill If to, a I:pl-,ted prior to I -ox. of the Addict ... I Partly Bonds. (ii) nam added to In, System during Natest period. (ill) .1 ... dy :.tell" occupied resident.. or operating business stabli.luall. Mich .111 be - ,ad I. he EyePon M - of Projects under .... tructior to be funded with bond proceeds. and (1v) Net R-rus. attributable to ..at ... I. for who.ImPect V.. h-. b..n paid. and MachIll be -acted to the System up.n of or to be fumed with bond proceed, (,r-Ild that .0 long " that. I. m Irma I. 1-11-Y. -I -I. than cu. of it. at do ... Mad I. this (iv) shall be ..ad .. an adjust ... I It this .1.... I.) without 111 .1 be Bond I -c -I); .. (I) :oy ul exct :X*d by the County to the I .... r of I Rome-. A-- Credit I -- It It of a dr- .-Pas pp.priats, hall be added to III P., am Into ... I V.ymbl. on In. ...do to determine -pl-ta with the f -pin, ,.at. T. ABAITRUUGE. Th. County I-loolt- to am with -hs-. of he is... .h,,b is of In. So"-- =.�m that It Ill ..is .. ... of In proceeds I ... which Ill he Series 1111 Bond. 1. be or b... -bit,,f1ha' ithl.the of Section I.IMM am S -c".. 1'. of in. 11-:11 Ba Im, If I'll. as awned (the -lma-) I any applicable I.Bul I,.l '.pl=i,.g �,�l.d Sections an. the County further I.venanls co.b;.opl Y .1ch all that .. of the Code If and 1. 0e pFIj to -Intel. I-Lnc ... IF the Rd -I illos. u. .... pit., of Interne In the Set - 1993 Boma. I -blisho- of the various and =ABG A'MUNTS. no designation and I. t -- .to .,..,ad herein do.. lot I.q.t he establishment of any ... P'*t*'y self -balancing ..If-boti.a funds I such to,. 1. --ly defined and ..ad I. p-res._1 _counting. but rather Is Intended solely to I.nstl cu to an ..rearki., of and .... 1. .. -ld.d herein. V. MER TO ISSUE BONDS AND PLEDGE PUKED FUNDS. The County 1. duty ,Uth,rI:.d nl,,.,Ilt.pp liable J.- to I-Im and x,.,I t .1. Be to I In 'utl M pledge the Pledged Fund, 11 the in It p,oaldadinc.L.. Except to the lltllt Illetruill p ... load 1. his the Pledged Fund' arm lot Fledged or hyp,th ... led (.sept .1th ..s part to the Retired Undo Mich ,, to be retired with proceeds of the Serlao 199) Berns) and, open of the Bell.. 1993 Bond., will be from and clear of any Fledge. It.., therg, or be,.., or lith ,.Pa., the. to, II prior I of equal r sith, Ill :.,Yu,l,y flue I. pl,d,, sine, I Else- .... led by this 1*,,Iutl,n. nc Iluding pled.. thereof to, Ill. benefit It the Retired Bond,, old .11 action ,he Fact of the County 1. that and hes be.n am mill be duly and validly The Bond, am the plo,Wcom If this Ral.1-1. "I am will be,:Ill ansa legally enforceable Initial I,., of the County In at ... delta with their t:m the ter lItls of this R ... I" I.I. no County hall It Ill cls.,,in the c.. ..... P.-t.d by tax. defend, pro,, rut and protect the pledge If the Pledged I.M. and .11 the right, of the Registered - Under this Resolution all claims am demand. If .11 are... h ..... -r. W. BONDS SECURED BY PUMB OF PLEDGED FUNDS. no Und, I .... I hounder ,bell b direct am special obligation, of the County payable I. Illords.l. with ..I, t:,_ I, Is I' ,he pl-W of this Resolution from the Pledged Fund, hereby Pledged for the benefit of the R.Sit:It ,,d O,rmt - I.. subject to the P1 -I. of this P. ittl,g In* 'pp'I,*1 Install for In. p....... sad .. Its terms am conditions at forth 1. him Ill. Tho Fledged Fume shall Immediately be subject I. the it.. ..h:,, . R ... I.till 1 this ul 11'. 'fthout any phySI,I1d.IL-y thereof or further act. m in am her,. this R ... .hall be -114 .. binding .. ..*Inst all pstctes haling ItI.Ill of any kind I. -t. -tr- or th-l... against the Ire... MatherI,. IF .11ur ... h parties hal,.[Ice ch -..f. R. TAR respect county I-oxot. that it will .1 take any still. or fail to ill* any action Ilh to the proud* of he Bos that would alt I. 1.1. of he flea..... I It . as for federal I-, to, pulp..., put, I to action 103(l) If the Code It Interest Paid I. outstanding BOM, aht,hT�- Initially I .... d old sold, or. the subject of an plot,, of I ... -1 to the affect the, lot .... I that... w .. .. ... lud.bi.. Ulth rd pant to any -[lea of bond.. the County . ante at say ,, of the SY.... In the tied. or buatnsss of any Person or entity other than the All or any par, .It b:frth. .,,Ul,.d under he .. .old paragraph of .,. . ub. Ion may and ... d by -lulting In,in-1, or the, Pat,.,. with requisite kI,,I,dg, and x,,,I-c. who ... no[ .....nobly objected to by the Bond I --. Each .... Will. bottling the Additional ,hof Additiol Partly Bond, hall :.I It, that III If .0u.n.- Berlin I,t.i,,d mill be applicable to such Additional Parity Bond.. Additional Policy Bond, may Ill be [,,.ad h-und., at any ties Mil. the -Ity Is In default in p.amt,g any If the --t, and obligations ....d he, ... Get, or III p,,a-, h -i, required to he,* b to the ll I -to h_ lot prowl dad hereunder, bum .. de I .,I extant I: and (..do;.o-, Tho I ..going conditions shall not apply Sth reaped Additional. Partly Bond, In. p ..... do of uhtch Ill be used to Complete : p J,,t . p.lti.n of the = of -ch hes been or ill be paid out If the p..... as If Bond. Issued he or. Tho County I-ne- for the benefit of the Registered Gurall of the Sell 1991 gond. ,, fine, = .1;.U.d and mIn, h-- at he C-ly .I . at it.. Is, any Addle Policy E.m.. sake I deposit to ,be Be,, - Account In the SLnkio, Fund ... led her...do, do, . the, the R ... - A,,:%.t hall 1- . .IU. of cash and I. -t ... 1. at uch I Is. _I I. the ... Account B*qlll. ..I (glut., affect 1. the Additional .city ... am the __txor of any Bond: being ,funded with p ..... d, of theAdditional Partly Model, "I- the Bond I ... *, anal I air.. th.-I... I-Ld.d, h... -r, t. no _.It b.,l such d*p..l I . required to exceed 'mount unt which if deposited from the pre d, of th:nAdditi..:VJa1r1't0y thm. u-11 ...I..Iy effort the ..I!u.!,n of -- ical to the Addl -I Parity old. Ices the gross Inc... of the h .,. ad Oul.re thereof for P.,P.... or federal Q. ISSUANCE OF MER OBLIGATIONS. no County will lot Is,., ..y .,he, oblig.ti .... .... It undo. the condition am in the = payable .. the ll.d,.d me. -I cast. I I be ad from any debt, Its., Pledge, he, ch.... haven, r!-I.p.t. in . n the nL,..d _I:, .r.b;lng :n , partly .1 of the at that ,h to" , -do. =pl :. my,. I fLI,lly p-d,d he ':to. The County say T.. .b llgeclona that the Bonds payable from the PI Bad Fund. P-id.d - I. J-,- . in It -cr as to ill. on ands .,stat J�j that Id ... Its and statef. ffth. Pledged d, and such obligation, r ... at. In Iclm all h .11. N. MANAGIUUM OF SYSTEM. no C ... ly I, operating the Sylls. rill employ p ... on, of demonstrated ability and experience and will require Ill employ... Me may have p-acest.. of moneys de -ed fr.. pecall.. of he SystemI'd V* ':.I by A fidelity bond bye I— ... lbi I it, im ... It, company In amount ..fficl- to ir-ct the County fr.. lose. S. CONNECTION WITH SYSTEM. no County veil, to the full *,tell "ttt.d by Is.. require .11 IsM., buildings, or .1,h1, it, 1;11 tI..11I=dlIlsm can use he System I= 1h.-Ith It'nod1h S ,!v d to us* I o; any ,her pliable at,, yet,, and any the sewage dispose 1. county. --- 11, .1. under . -l-'s, contract I contract. (-plic- bull.... us,-). If such us, 1. related to the county of the System. �tll lot ... ad -. the. to. Pat ... t (10% ) If the ... If the Sy.tc,, or if much privet, b -Ins.. u.. I. .,listed or di.plop-L,nxt, to the Go amyl: us. of the System. .111 net exceed -to than it,. percent (54) of the - of the System. County ... ty c-lant, that - sou hen tan percent (100) of the Rm- me, .111 be derived directly or Indirectly from ps",- from any no.g.-tom .... I ,th*, ill" Pays-, by g--nt.I u... I. I mambo of the I ,ubI,. T. no furtherto=, and q.. Mich the R. -I All regal may be .. in . h '* I .. .Lih . Reserve Itch 1Account% neub..IIl.n .(I) suit Itruall, all. -1... the .R.nd ,ch--, as follows: (1) With ..pact to any letter If ,suit: (.) ...h let,., of credit hall be pl.bi. In ... or ' d.... . on by the P'yl'& Agent of . .,ht draft I ..pentad by It. clItificat. hot it the, hold, L-ffict- fund. to exi,. . required payment If Principal or Interest on the Bond.: (b) th, d,,., shall be payable vlthln - day, of pres.-t-, of the eight draft: (c) the "T' of E:r.dlt,h,ll . for I tell of not I..s than three year and , hall be subject to an v, r,reening• feeiu.e .o .t. provide id. he 1-ty with at I. eat Ifna termition; the Issue[ of the I.tc: month' of Iir shall be F.,u-d to -ill, In Gouty and "' "In' A "It "' ' th an . month, Prior to Ine stated do,. of he tette, I credit as to Mather I. much ..ptt1.n data hall be ..... d.d, am it so, bell indicate the nom ex Dl cation data If such notice Indicate, the' the expiration data .hall not be .-mm. the Count, hall deposit In the R--- - A-Ou I -- --It sufficient 1. 1.... theooh or FZ. 11, Invests In deposit in be R....va Account, t:d tl with any I u Be he' that q 'Illy'", 1:=t Ac .... i Credit to -.1 it. Is.- .,count ..quit .... t on .11 " I - t:nd'"' to be paid 1. equal In-li. 11 on ... I.. I besthe the tell., ..I is by -thsr" - re. AtIlIlt GI.d1r1=t1-p.xmjtt.d h-urd and (d) no letter of credit shall Perot, . d- In full priorx e t to hexpiration or termination of such c iaI1. an ':Pit I tt ... d. letter of -dit has not b:.d in the sort.. 1993 dinklns Pum. scram., am ether .anunla da"'t[ed so the Bond—selection fud *Iloosble to the Series 1991 bond+ +hall be held In she 3eela' 1991 sold Nersi.tl. Swiss. Pswtnts' and .the, A --I. d.,..4—to the Ra"two .cmmt .11_.bia to the Sell. 1993 Sond+ zhall be held in the Sella 1993 NA. r A, wow. The imen fur lm-et.nC .f In. der.+ 1991 Slnking Fund am the Sort.. 1993 Be..". A—un, during + r—cocile per Gd of tree fro+ the dare of I..—. of ell Sezl.e 1993.re, .. allied by ....quill...taction o[ She Boa., .ball be depo.lted Into the Silica 1993 Rebate Account l* the •+ Got required am the .... a, IL any Into the Sea. 1993 Sinking land end earls.& .w clt.ly for the parasol of IG+i ...ac first b.eong due on the Sort.. 1993 gums. SECTION 19. PSOEPOM FOR MYRRRS OF SERIES 199) Miss PURSUANT TO THE SMI 1993 BOND 113uRMCS IOl3CY. the following provLet.— shall 6-a. payee - e[ Sac lac Sorosevant 1993 purto ch. Sets- 1993 err I ... ra.. policy: 199] (1)tAnltirdypsUt1h thaipitil, "to 1- th stdu.n srell+AM interest onthg ae[e able t. pay .11 of 3arty- Gclse 1991 Sold. do.aon soh date, the Uytos Agset -jail SensoiaGly -bit, the sued insurer end Cll.sok, N.A., Kms York, N. York, or Ire • a Its fiscal Agent (the •atoll Agent-) of the Bows of awh 4ftet.-y.sol! by .td Inter.+ portent date tau .wty hu mt pYmlOed the +wont of such d.f1.G-y, the B.. Rest rt +hail .acacia+-awiy use Wa1Lbl. to th. sem Incus" nd G the Ite9al Aj or he To, Wall n books for the Gll. ml sonde .Ines load by t- send Redia..,. In =Ill..: (A) the Versus Agent .hall pra.IG the Bond Insurer With • list of flatstndhold.re entitled to Teralw principal of lntetest psya.ta fres the Som 1—, undo[ she tern o[ torSerisa 1993 Gam Insv:ante Poti<y am shall Aske a— manta fol aha tom Insult and Its Fiscal Asset (1) to -ll haeG or drafts [o Sondholdm .titled t coraw toll o Partial tntarest Pay.n" few the Sold insurer And (2) to 9aY Pr[.I 'I of the Basi. 1993 Soma t rnmend to [hs Fiscal As— by the Soodhalds so .titled to nGtve full or partial pll-lpal PM"ls 1.. ,be Soul imsur•r; and (B) The paying As. hall, at the it. she regGtretlou bloke an NASA .a17aD1' to the Sold ins r puiauanto (A) above, -ilFr ft Idsre .titled to .Glu the paynnt of ptincip.t of or ll—pr . on ,he Beet1991 Bonds fro. the Som Insurer (1) • sthe face of such entitlernt, (2) that the bond lours will elect to this -11 a of the n inter.. p -.t .Ind du., (3) that, . a's a. peovtEeb to slash (it hot-. In the went that Any Bondholder Is ontltled to talcs Rult .ymnc of pri.Ipal frow the Bold 1. ..... .th 5.—Idar .Ass grMr hse Lord rich the ins of er -G, in the f,en p ... ldad on the bam .Gcuted to she -w of th. Send imw+r, and (A) the.. Arw ac provlMtl In p—M.Ph (11) holo, In the .vent that such eondAolder la .Rltsed tore los p....I paya.nt of principal IM the Som stew",. such Bondhaldrr at t.m.r h[. Som fns, peyeont IS at s the paying Ascot. which hall -t. on awh Boom eh. pore loo of princlpal paid by the Payind Asset, am than, with the fan of --afar .+ toad to the -0e of the Som Insurer, so the floral Agent, Mich will than pay the u.paid Fission of principal to the hot.Owld.. (i1) In the aunt that the Pey"s Agent be. mile. that any papal' of prinrlp.I of or Inta[.a[ o a Sarlea 1993 Mrd hes been r red Ella a Bondholder put .... t , sheUnitedS.ret B-nk.ptey Cods by aA trustee in b.k.ptcy ine..orda-e with the final, rwneyy.table order of a court haven; Dopar... Jurt.dlctlon, the Peyln6 Agent *hall, et the if.. It provide. -cica to he Sona tnsur", otl[y .11 Aondhold.ra that In aha a that any ...dhalder's pay"-, to co "Covered, such Bond -Id -t will be •-tete& to ps".or is_ the pond I-u.r sothea of such . Y. and the PAying A&., +hall Furnish to the bond Insurer it.s records "ldeneing the payoWt. of p,lncipu .f am color— an the Sart" 1993 Sonde Mich "-been aide by the Paying Agana and .b.sq ..it, ra —rel fila EondhoidaG, And +fie date, on Micit such p.ya.nte rose ad.. (ill) Sha Eor In .. shall, so tbe -:tont it sake, Fayaent of Fri., pal of or In".aei a the 9orlea 199) pond., becose Wbrogi"0 to Che rtghta of th ac lot..,. a[ ...h p.ya+n. In at—u.or- with the I. - of the Perla. "'1 Eur Inawra-s Poitcyem. In vide -e wh eubrogatton, (1) to aha - o, -ubroeerton " to claims for pa. due tots.", the Bar Ra/tecta, -hall lot. the gaud to—W.Yl Shia A. cub s.... on she "gl-tratlo- honk- aslntliled by the Bond R.t.t"i upon ':..to' Trop C- Pool Insurer .f proof of 'be psy.nt o1 1-1— th.r— to t- B.ndholdara of such Part. 199) Bond. ar (2) In the —.of .ubroµClon .. to list.. for past du. princlpel, th. gond Real. tr-r •halt nota the Ear I ... car.. rllh,... catcall. An the re&tet... I.. book- For be Soltea 199) .oda aalntslnW by the $Old Ragt.t Gr upon "cespt of —E of the peya.n of prtnctpal ch.—f to the ..ndhotde" of such s"". 199) Sold. Noll I Marauding ,n thiug in this R ... lutlon to the c-l-ty, the Paying Agan, .halt —Us y.Pon, at such p -at dow Interest am pave due pri-ip-i &stet<ty to the Pond Into— to the r. our Chas the .and Insurer I. • aub.gae with respect than". (Iv) The ..,it. tddreee.. for he Aor Insurer and the Fiscal agent .hell be fallow, or any such o,hac add "as a the gond Insurer or Ft-tal Alan, shall -ubaequ.tly provide to the paylo& Agent in wrltin&: Financial Cusrenay lu.—Oct Crop., 135 a.adv.y He- York, Nov York 1000E st ion: —.1.1 Co—I Citt-nk, N.A. 20 Each..&. Place • Itch Floor N. York. Has York 10005 .creel.+: nunVestal Trutt and Ap-y 9ervlcos Ad.lnlatrat len. .Eaton 20. 0PLICATtUE or SERM 1991 BOND "'Elf". All .nay. trio& Ills the -It ins isle. 199) Bond- ,hall be deposited and .pilled by the County e. fol lour: A. All .—H.d lot*..t Five, at t-Iptlon of the County A, specified by -M.equ.nt ...lutlon of the &old, - t which, logics,r with the lures. ..posted to be deporttad Into the IS" Stnktn0 IoM pursuant to taction it ha"ot, will .quaff all - a portion of 'he InGceat . aha Srr Ut 1991 Boma for Lot* O Gu.e IOd of t-, fro,Nerd : ear of leswiwe thaorf shall be d.p,tlted { n appl I., eetlw4vely for aha pey.ent et Interest (tilt becoming due on the Sertsa 1991 Bonds. In the Mom Art -ori agwl the Ross". Account Ggnlraeent o ell (2) iha w o[ Any b.m Aeeeune Cradle [nser.wn[ .hall 2) - ding donee, '-h .Hunt to be paid aver the +owing ....... b sub to m.i s at . e .sen of w -.i sw."bA . the J p p bed ruurar in [en Sod AubaG-* adCtefactery to the Sold inswar Years I. equal (natattaence &lour IGd at least sect'.—catty e! (Ii) replace such I-twset rIth mth.I Sol— Account Credit =--- As to the dus tuth.,Wrio......Here, dallvsry and enf.rteablllty In.t -out .Rhin six ..the o! 'acts, occurs -a. 1. 'he Avant (a) of h i.ttusnt In Aceotdr-s vlth Its tens, .bJ.t G the ratted of the claiu•yarins abfltty of the [.suer .f she c ety msyllcable im Aff.crIA!..oil .. right. p -relit', and. to the not tM 4. o[ .wh credit /ncttaunt G rot a doasatic .nfl Cy, O., or I -acre -a poilcy fell! ball. •A•, or (b) he retire{ otlthe ..... of aha Istat of credit lata. helot •A•or (C) the I+aur! of . "lot.. of .4t. .—.1 in [ n And .white -e msitof-eto[y G the Rend Inouree. in addition, Ci» we of co trievo<abis latter of the R... - Acwunt , out. taatrwent &I.; !n iia peya.ac obi tsatlens here.nd.r, Ar (d) the I....r at the 2..rv. Account a [salt -hall Bos eubJ.t to Yor P, of + opinlan et counsel Credit Imcr=, O.co.t I-olvent, Na County than either (1) nptabl. to the Bond Insurer to fen and Aubar.-r aatlafactory to deposit into theso 0.eeerv. Mco-t an sou [ t tflctent a I . the aha sem insurer to the affair that paynnte under awh letter of rest, void roe consel.G Amdahl. pcafen-.. waver Sactlon 511 ..h or panteted tmeet.nts on dapwitntn the to e—I the R..m -Count regatrewne an ell au[a[.... Banda, .wh a[ the Hotted State, Bankroptey Coda o similar Florida lava vies, aocuat to be paid over ins ensuins yeti In pual 1--11nntl on at antdabla pr.Grenee 9-1.1 to in the +rant of tree tilt's of a t.at a.nthty beta, or (ff) [.plan ouch t-t—A with a- at .the chilled LIII—fib. lint by the Bo -ata (or anavpsay do Ac<o Or y a { 7 y at stews"+ A.sWnt Cradle Inatw.n[ vlthln alx month. of auto ranee. party WAST the latter of credit), to (3) Theabllµblon to r,i br,, the I.usr of • Pact—cl-lms (5) where eppllosbG, the eon —class. far dow- o Older . R.asm Account Credit Instrusanc may be rad.ced by any tan or espan closer or Poen-t Credit Icer—at the . or cAshor p.nt'.d I ....te deposited in the RaaIlle d—iF.n such "earn us— Credit i-twenc +hail be 'ubord(-G to the peywos of debt acrvlea on the Bold.. The -ht Account purs...t to either clause (I) of the preceding cusp—ap,ph (A). of the I.s-, of A Race— A.,— Clads, loatroment to Pirelli or ret.ksoncerat of In fat am expa-+e +bell be owbocdi-ted to cash .pl.nseh.a t: of the 4.m Account, W, .ub)aor [ she .....0 (d) Cash on deposit in the Reeesv. Account *halt be used (or I,,::!, t. ,11, *led rich eurh ...It +Pill be liquidated and the .ad".�ume. lG Plot to'A"'ue.nor for .let- or area It. sada app)led a xequ!"d) prior to any drawing o any "$or" .hall be An a parry with the Each r-pl.ntahr- of the Ross-. acrowt Credit sotto+.. it and co aha • ret char vara then area A .Aur the 4.m seetwt Credit lotrueent .hall provide for I nlvtod Csctwa older which the amount ..iseble th.reund. Will R ..— At— Credit 1-[rwA.nt Is deposited In the R.11— Account. dr.lnge th—under and np.yosnta of a .cl—S be titillated to the .rt-nt of any raft bw.nat of draw, at ilei. "Arrvith +bell be Sade on a qro rata ball,, ealcul.red by rafer— pall. If the t volvlay lien,* G swprmAd or tenlnsted for any IAA r/dht of all Sswr of b- RG a Account Credit to the ...leu.. -unto +vallabla th.... ldar. i-Yr+rnY to cefob weralw t .ill be further aWardtnated to cash 2. VARIABLE RATE dbL3dAti0.Y5, IE the County at any tree -bail 'a...r.ysenGhwnt of aha "'a— Mamma t equal s rbc dltGn-s be—.. the full 0!1&1-1 A'wo +.+suable under she Addlllonsl PAcicy Bond. the Interest G on witch le nor e".bllahrd at the aloe of t"uan<e a single n aslcal rare wish —se., t ..h . urlty th.... I eBotda•), seA rion, Credit I.,ti . An, he Seo—t then -.liable for ('Vex Gbie Rase then such Wriest. Race a...o shall, far pulpos" of = earthat it— a closes, ie tau avant (a) the I.— of a Reearve Aeeowt ..WI[ I.1—ol be.—. l-olnnt, or (b) .. Ga of a lots Aasolutlon, o e far the pl—t-Gn. With ,.pact to p.ysanc of lntere.i thereon to 11, holder. ,red r..I.,ad owe. there. t, by aa.—ad to be., Interest us, I mcowc Credit I-tnr- default. in it, pay"nt a fixed rate sgwl co the higher of (e) 9.29 and (b) the highest lot—al vote eEilµttep. thareNd-r, or (e) Pro rat.+ of he claim paYtag "fifty of the lasuat of the Insurance yeller o esty bond /011. born+ over the paoc.ding 21 soothe b` any .—t-0,8 Variable Rete Bond,. or if such V"table tete bonds . he ciao outstanding, by wrlabl, r a debt below ---by BAP and •aac•gnody'a eepacttv.ly, at (d) the rating for Mich the interest r . so entranced by ta... me t n tMax coar-al, t of CM 1 -aver of the letter of credit fail* below •M• by S&P and •N• by K-4.-, [b µ . oblitton t tiseburee ss,. I.u. of the that to be uttlt,ad to docawtning the cuts... G. for the Vortabi. Rate Some than Trip ... d to be I .... d. Ral— Account Credit I-ttlealt 'hall be subordinate 1. the cash nPIWAl..nt of the sesssn Acsasvrc. SECTION Is, 199) FUNDS ARP Account. To... 1. hereby (a) In the +vont (a) .. x nlvtng '-'.letamsnt [.tura at",, had the •Sart. 1993 SS-I.y Fwd• within ch. Slotting hand, the •Sart. &scribal /n the placating, subpuaziaph (1) to wpeload o tent -ted, or (b) the callus of the clad paying All 11ty of the 199, Som anu citation )Lm' within the band Aecrcte, too Fur and the •Sart+. 199) Res.rva Account• within the Resasv. Account. The Seri. 1993 Stnking Fund. l ,", of the .war, hem or t --ante Fol try [all. bila. •AM- by the Sort. 199) bond Al4ftllasi.. hand old the Sort.. 199) R.I.— Account shall SAP W •Ams• by Novay's, ex (e) the rating of the I...z o! the let of credit fall. below •M• by Sd9 std •AA• by Hardy'., she of In any earns, what—, affect the partly of the Sond- and sre .tabiish.4 mately Eor Che • -ting ca entente of the Col, . R—cole and that Aur Is— shall either (1) deposit Into the R.lsTwo Account • Suffielant to .lac [hs dean itparented inv.wnt. on depots, I. depet teed In the Slnking )Lod ailo.bla [o the S"Gs 1991 bonds Wil b. hold in the sort.. 1993 dinklns Pum. scram., am ether .anunla da"'t[ed so the Bond—selection fud *Iloosble to the Series 1991 bond+ +hall be held In she 3eela' 1991 sold Nersi.tl. Swiss. Pswtnts' and .the, A --I. d.,..4—to the Ra"two .cmmt .11_.bia to the Sell. 1993 Sond+ zhall be held in the Sella 1993 NA. r A, wow. The imen fur lm-et.nC .f In. der.+ 1991 Slnking Fund am the Sort.. 1993 Be..". A—un, during + r—cocile per Gd of tree fro+ the dare of I..—. of ell Sezl.e 1993.re, .. allied by ....quill...taction o[ She Boa., .ball be depo.lted Into the Silica 1993 Rebate Account l* the •+ Got required am the .... a, IL any Into the Sea. 1993 Sinking land end earls.& .w clt.ly for the parasol of IG+i ...ac first b.eong due on the Sort.. 1993 gums. SECTION 19. PSOEPOM FOR MYRRRS OF SERIES 199) Miss PURSUANT TO THE SMI 1993 BOND 113uRMCS IOl3CY. the following provLet.— shall 6-a. payee - e[ Sac lac Sorosevant 1993 purto ch. Sets- 1993 err I ... ra.. policy: 199] (1)tAnltirdypsUt1h thaipitil, "to 1- th stdu.n srell+AM interest onthg ae[e able t. pay .11 of 3arty- Gclse 1991 Sold. do.aon soh date, the Uytos Agset -jail SensoiaGly -bit, the sued insurer end Cll.sok, N.A., Kms York, N. York, or Ire • a Its fiscal Agent (the •atoll Agent-) of the Bows of awh 4ftet.-y.sol! by .td Inter.+ portent date tau .wty hu mt pYmlOed the +wont of such d.f1.G-y, the B.. Rest rt +hail .acacia+-awiy use Wa1Lbl. to th. sem Incus" nd G the Ite9al Aj or he To, Wall n books for the Gll. ml sonde .Ines load by t- send Redia..,. In =Ill..: (A) the Versus Agent .hall pra.IG the Bond Insurer With • list of flatstndhold.re entitled to Teralw principal of lntetest psya.ta fres the Som 1—, undo[ she tern o[ torSerisa 1993 Gam Insv:ante Poti<y am shall Aske a— manta fol aha tom Insult and Its Fiscal Asset (1) to -ll haeG or drafts [o Sondholdm .titled t coraw toll o Partial tntarest Pay.n" few the Sold insurer And (2) to 9aY Pr[.I 'I of the Basi. 1993 Soma t rnmend to [hs Fiscal As— by the Soodhalds so .titled to nGtve full or partial pll-lpal PM"ls 1.. ,be Soul imsur•r; and (B) The paying As. hall, at the it. she regGtretlou bloke an NASA .a17aD1' to the Sold ins r puiauanto (A) above, -ilFr ft Idsre .titled to .Glu the paynnt of ptincip.t of or ll—pr . on ,he Beet1991 Bonds fro. the Som Insurer (1) • sthe face of such entitlernt, (2) that the bond lours will elect to this -11 a of the n inter.. p -.t .Ind du., (3) that, . a's a. peovtEeb to slash (it hot-. In the went that Any Bondholder Is ontltled to talcs Rult .ymnc of pri.Ipal frow the Bold 1. ..... .th 5.—Idar .Ass grMr hse Lord rich the ins of er -G, in the f,en p ... ldad on the bam .Gcuted to she -w of th. Send imw+r, and (A) the.. Arw ac provlMtl In p—M.Ph (11) holo, In the .vent that such eondAolder la .Rltsed tore los p....I paya.nt of principal IM the Som stew",. such Bondhaldrr at t.m.r h[. Som fns, peyeont IS at s the paying Ascot. which hall -t. on awh Boom eh. pore loo of princlpal paid by the Payind Asset, am than, with the fan of --afar .+ toad to the -0e of the Som Insurer, so the floral Agent, Mich will than pay the u.paid Fission of principal to the hot.Owld.. (i1) In the aunt that the Pey"s Agent be. mile. that any papal' of prinrlp.I of or Inta[.a[ o a Sarlea 1993 Mrd hes been r red Ella a Bondholder put .... t , sheUnitedS.ret B-nk.ptey Cods by aA trustee in b.k.ptcy ine..orda-e with the final, rwneyy.table order of a court haven; Dopar... Jurt.dlctlon, the Peyln6 Agent *hall, et the if.. It provide. -cica to he Sona tnsur", otl[y .11 Aondhold.ra that In aha a that any ...dhalder's pay"-, to co "Covered, such Bond -Id -t will be •-tete& to ps".or is_ the pond I-u.r sothea of such . Y. and the PAying A&., +hall Furnish to the bond Insurer it.s records "ldeneing the payoWt. of p,lncipu .f am color— an the Sart" 1993 Sonde Mich "-been aide by the Paying Agana and .b.sq ..it, ra —rel fila EondhoidaG, And +fie date, on Micit such p.ya.nte rose ad.. (ill) Sha Eor In .. shall, so tbe -:tont it sake, Fayaent of Fri., pal of or In".aei a the 9orlea 199) pond., becose Wbrogi"0 to Che rtghta of th ac lot..,. a[ ...h p.ya+n. In at—u.or- with the I. - of the Perla. "'1 Eur Inawra-s Poitcyem. In vide -e wh eubrogatton, (1) to aha - o, -ubroeerton " to claims for pa. due tots.", the Bar Ra/tecta, -hall lot. the gaud to—W.Yl Shia A. cub s.... on she "gl-tratlo- honk- aslntliled by the Bond R.t.t"i upon ':..to' Trop C- Pool Insurer .f proof of 'be psy.nt o1 1-1— th.r— to t- B.ndholdara of such Part. 199) Bond. ar (2) In the —.of .ubroµClon .. to list.. for past du. princlpel, th. gond Real. tr-r •halt nota the Ear I ... car.. rllh,... catcall. An the re&tet... I.. book- For be Soltea 199) .oda aalntslnW by the $Old Ragt.t Gr upon "cespt of —E of the peya.n of prtnctpal ch.—f to the ..ndhotde" of such s"". 199) Sold. Noll I Marauding ,n thiug in this R ... lutlon to the c-l-ty, the Paying Agan, .halt —Us y.Pon, at such p -at dow Interest am pave due pri-ip-i &stet<ty to the Pond Into— to the r. our Chas the .and Insurer I. • aub.gae with respect than". (Iv) The ..,it. tddreee.. for he Aor Insurer and the Fiscal agent .hell be fallow, or any such o,hac add "as a the gond Insurer or Ft-tal Alan, shall -ubaequ.tly provide to the paylo& Agent in wrltin&: Financial Cusrenay lu.—Oct Crop., 135 a.adv.y He- York, Nov York 1000E st ion: —.1.1 Co—I Citt-nk, N.A. 20 Each..&. Place • Itch Floor N. York. Has York 10005 .creel.+: nunVestal Trutt and Ap-y 9ervlcos Ad.lnlatrat len. .Eaton 20. 0PLICATtUE or SERM 1991 BOND "'Elf". All .nay. trio& Ills the -It ins isle. 199) Bond- ,hall be deposited and .pilled by the County e. fol lour: A. All .—H.d lot*..t Five, at t-Iptlon of the County A, specified by -M.equ.nt ...lutlon of the &old, - t which, logics,r with the lures. ..posted to be deporttad Into the IS" Stnktn0 IoM pursuant to taction it ha"ot, will .quaff all - a portion of 'he InGceat . aha Srr Ut 1991 Boma for Lot* O Gu.e IOd of t-, fro,Nerd : ear of leswiwe thaorf shall be d.p,tlted { n appl I., eetlw4vely for aha pey.ent et Interest (tilt becoming due on the Sertsa 1991 Bonds. A. A A— it any, ..<itiad by auboequo t -111011 of the Board .hell b drp.•lred into the Soft— 1991 Reserve Account in the Sinklna Fund. C. M ssowt to be apecifild by s,bmogw,t resolution of the board shall be Applied in eoreeetton vlth the retlrasent of Retired SOM, ae 'Pacified by subsequent r..oluttoo of the Board. D. The enure[ re. ssry to pay all Cwt. and,xepatmtant' cn a uaoolKed vith 11-1.1 rapon., gbMisa end prom oj,<tt, least fat•, . f..., fen of ilonstal A&I.Ors, Printing expenses, pnmiuto am cnPonw related t Insuring— rating tha Sort.. 1993 BOM- aM all other ,leiter costo and ..pent.. imarred in conessetton win sho I—at, If the Sertee 199} Bolls sad the retloos.nt of the Rating Bonds -Mil be paid or provided for. C The bNeme iasatafng error taking ell the dapostta and ..,sans prseibd ove to, AbAll M Inca the •Sarin 1993 conatmction Fund' ahieh 1• baby .reared end o,t•bllohed. Thetorwyo en deposit to the Serres 1993 canstm<etoo fund -heti be avn alther, used AM applied by the County, .. And M.. nor..•.ry, [Italy for the parmnt of o relhe a eb.'s— for tof the Sort— 1993 140J.1t, and gaspow Incidental Mo..; provided, hawse wh ralaburar»nss Wall only be far arpaMltoras ahilh an ....tiled to be r�labu... d under the Cods. If for arty swan Any —Y. in the Sort.. 1993 Lemerwtlan Fund ..e cot osc#.. ry foo cot ."Its4 to the payrnt o[ a retebur..mnr I., such -nate, then such ands -Mil M depo•/nd by the County Into the Ser1.. 199) SlNing F1uN And wed only to pay the p[imipsl If, proolw, 1f any, and interest on the But.. 1993 A.M. shish first Mcws due. Anything to the contrary conuined hetoin mbtthetaod[ry, the Sort.. 1991 Crnstmetfen Final .hell be and ce..dour. trust fund for the put..... provided hent. therefor -M shell be Pledged Fund.. Tn the +sant of A default by the County Rn the pays.. of P-4.1 of or tn..nat oa the boMe, rnsy in the $art.. 1993 Mnetnctlon Fund shall be end to Andy turh default, but only to the .start that that# a.. no other [undo held amor the Nester BOM 6ao.1utlon svaliabls for ,wh pun ... Any rusya In ell Serfoa 1993 Coustrtion )bM Mich, In the .plot,, of the Canty, a<ttng upon the ncue ass moston of Wa Consu111.9 gnat...., a to not /wile..ly w<ex .ary for penditure, .. ho,rtnsove bprovided, nay be Invested In Avthor/.ed Itrva•Wnt. ow—LOS a wh rim or talo • will sake the proses thv... t available Man nsedad. +All IOU— dvrtvsd therehou hot be depeal..d Ince the Sortea 1991 Rebate Account to the extent required and the .Acus, 1[ any, Into the Sort.. 1993 Constrwcton fund. All esp.MI—.. or dfoWwrnta freo she Serie. 1991 C.n.Inctlon Fund atollbe md• only altar such •.psndit.r,, or dish ... e.ents shall have bean .pprrwd 1n v.itlnd by the Caunty and, Mazs applluDF+, by the tOnavlctng gogl_ re. The dere of w.ptetion of ..h ph... of each of the $art.. 1991 hojmrt• shall be datenl..d by she Consulting Eogl nano, Mo Wll ee reify ouch fart. in -fore{ t. she board. $SC"ON 21. AISATE. Anything t she < .ary c [ulnad herein mtvltheisMing, the County Wall .t Iv -at aanwlly [ Dafor Inco the •Sextan 199} pvbar. U-Mt.h is hr..by trvatad and ncabFt.h.d Eons the fund. all oust• under the Neter Bond Resolution and herauMer to Mich Income o 1nv,sWnCA attributable to she Seri.. 1993 A.Ms hue been deposited eppl,".1. O. The Bond Insurer •hall be notified ProvVily -I -ny dery on the Reserve Account And of any delle/amy due to Dark., flucewtlons In the mount, if any, on deposit in she, "..— A.—I. N. In detemintng Whether an event of default her occurred na effect shall be glva, to PAY.— cod• by the good Incur -t. No remdisl Action shall be taken v/Wout shete.nt of W Som Too— AM the boll insurer, ..ting aloin. atoll have she right to direct emsdil. upon dofault. 3, Rowdin .hell be <uaulsttes rich rePtec dhto the Paying AAent, th- bonolden .M We MM Insurer. In e v any remdl.. Pursued under the Ram•d lution are diseentlewor abandoned, the an Agent, the Bondholder. and the gam 1-1 atoll Usteatorad to net, form, positions. J. The prior wittah cons-nt of the SIM Insurer -hell be ,.q.l d for .try vaivor of a default. A. TM County -hell provide We following lnforsatlon to the MM m Ier.r, (I) A copy of ..W of the Annually audited flrumt.l teport• of the County; (if) A copy of the County- upcoalng year'- budget; (tit) Upon the Joe— of additional debt, •hethe, or not It leA parity wish We bond copy of the officl-1 statement or other di,olosur, doewant, it any, almulAted to <omactton vith •cab }..—.; AM (I,) DO an .mull best.. the tottering infow"ll: (•1 *,*be, of $yt., Moore 0, of the and of etch .r.. Year; or (b) UltbdravN of any System caw co-pr(-lrg 41 nwnu�of the 3r• ..... ..I.. (Dor.a to I- or declare) aloe, the lase reporting data vd (e) My eTTO.nt plant a -P ... [.1 or r.tlrwntA PlAmed or In pro$.. v, L. no Boyd Insure, shall be at...pt pn,pt notice of any edeapslon, other than Dand.Iory -inktus fund tedaptlon, o[ any A -M-. suthmils- t (mlodr the pxlmig•1 -...rete, Us— it.. AM c _ _bar, of the $.Me to be ndeerd. M. The boll lmur.Y Wall be at... inedible write of any Poyaant default win rox, to the Mme and any other dvfauit k—n the county a the ?,,I" Agent (all the Paying Agent Is itsbY authortaed to At,. the Bond I..u..r mile, of any default Inco to the Paylog Agent). N. TM MM twu..r •hall be provided with A full ts.—rlpt of ell my resolution aaDaMing to or ouPplemnting tsuration of his Been utlonlesont o this Rreoiution as of .,Ate ..fticfont to pay to the Unitw star*• of America all —to due with ,aspect to the Sodas 1991 gone. v Us the pY.vtslow of Seaton 146 (f) of the cad+r.. The Darning. thaon the Ss.tu 3991 On_Robes. As.—I bell be Addad to .m 1. be Best.. 1993 Rob Aecavnt aTA71too7 b+..rdIgolto.hetthe<wun[+due to+thr .suit ed State+ a(—' is aMsr ..id Section of the Code vtth 1= to the Retire 1991 I.M. ++ W shall bet..* due and payable. it 11 the Intent of thin pm..g„ph to provide for pay..nt o[ a71 -enure +due uMaT sold sntMn of W Ced+ vith toepwt to the S.ft.. 3993 Sand+. In such insulls+nts and at ouch tlra as my be regal.+d by .std Section or the code. In Ibe • n of any oaaMs+nt to the Code or the prowl Becton of [egul•clrne uM-r the Code Mlch O,.vld. or raqutr- -[hent.- then n Presided or ngvind in this parageayh, This Paragraph shell M d.. -A e be assMed to Wrnponta u.h MaeI, Ugul.tt.., a the .,Plttabl., end any provAtions M...f Mlch confllc, vIth the pxovl•lo.. than-[ ,hall be doomed to be null all void. SECTION 22. SAIL Of INS SM11S, 1993 BONDS. The Sortea1991 Banda my be wtd At pubil, or prtr.Y# ..le punwnt to Me Act, aI, at. tiee or iter 'Ver to rise... -halt be provided by nub,, ..t resolution of the Board. SECTION 23. SPECIAL COO£ WM, So Ion& as there to - SOM I ... m-, the Caunty cov to to caaPlr .411, no foFiovina Orov{-ions and U- Registered an -..of the Bond.. by that, -cosptam- or ouch Bond•. .hall be dewd t. con..nt to the fo11.0n, po-Woru; A. Th• county +hall provide We Bond Insuzn wt1h tush Witlwl Int r... tlon a. la ....onsbly r.,—.r.4 by the SOM Insurer frac tlr so itm. B. Any oot(ce or Infoneatlon r.qutrad to be furnished t the bond Insurer erred.. the Pa.olutlon ah 11 coer l Res •ddn+nd .. .. ns toll-, ..reia Notice of ,hung. of aMr..a he11 hew been given by the poll I ... tor to the County: Flnsmlel due ... ty ...Tam. c-epeny. 115 Sroadvay Naw York, Pe. York 10038, Attention: Pnrldenc. C. Tfie bond Scourer atoll be dermd A party to tn..... r under We Reeol.tton. 0, upon upon th...< rooms or A default ehirh-old V4.re the Mm lea -r-1 to Ask' PayS•nta M"rthe gond Polley, the BOM Insurer AM its designs ted agent +hall be provided atth scam to the regt,i—ian book• of the tennty, Datntateed by the bond Registrar. E. No rolignstton o vat of the Paying Agent and/or the Mm Dealer— she11 Mew +f actio. until a me ....r ba- be,, ap"Imad -m has ccapred the duties of Paying Agent and/or the good Ragt+uar. rhe SOM I ... tar shell be fumt.h.d vIth written moll. of he ..elgnstlon o caval of the paying Agent all/or the Bond R+giatx.r all W. aupp.t.Wnt of any awes or We..to. MY su or PAy[ng Agant suet hese < blued capital, surptweem undivided profits of at 1•a.t $50 Hillis., wlnt the Boll iruurar +hell othenlaa approve. P. nl• I...lutlon shall not be wMod althout the prior •rltnn consent o[ the Bend Inuurer. 1.11 tong • tor+ I. Bond I.or... •...virion for pay— aM•r Section Yd hereof shall be eonsld...4 .. having Mtn Dade only It the [oiloving are used to effort defoa,,ma, enter, the MM Insurer •hall oth,mt*, opposes: (1) ...h; (2) Federal beeurittte; (3)avtdrme• of o- ship of a propoetl... to interest In •p,,Ift, Federal B.......:1 Mich Federal 3 ... titier are held by a bank at sot ... P.uy o,g.ntred all --foting ..mer eha lay. of the Unit•d - State, of Morita or any t:thereof In chs e•p.cltY of Cuetodl an; (4) the I.[.cert cospanert of obligations I .... I by be R ... lutlon Nodin. COMP. the, have been stripped by request lade co the Federal A ... rve, bads of N.. York •M held w bosk•..sry ton on the xano.de of the F•de of a.,.— Bank; (5) o�bti lhutons of dsrate orDT SnMad mtPosx`tp'l bondataiparattan ..era `t. r I—*). or •Asa• o 'mea" by NOISY lnv.ator• Rervla, lacca. or is . • r (•NapdY•o•). and fM provleft. for the Payment of the primipal or am I ...... t on vetch •hall have be+n ted. bydeposit vtth • Ag• of (t) cash, (ll) Pad ... I s1lurltter or (ill) obligatlau of star, or Ural gry rolumpat boll Wwra rated •Am• by SBP or •Ana• or -masa- by Moody`•; or (b) any .oebtmtt.. of the fr..6.tog. "in the event of any advance refunding of BOM., the Bond for.n r .hall be provided .IthA report of en lndtp+Mant certified pubs to M a Uoo _,"I'll that the funds to be on deposit for ma— of the good, ba to& refunded .111 be aIffiri.,t to pay the p,lnolp.l of AM lot....[ on the refunded "Me vpon •rated a tI1ttfoa, conch r, red..ptlon prior to mturlty -r optt,nal r.de..tton erw prla, to .3ty, m the... Day be. DICTION 34. DEFBASANC6, It at any tim the County WQI hav, paid, or shalt hese wad. provteton Far p-ymnt of, the pvinoipaf. tntorett am presttrs, ifany, vlth ..apse tAny of th e "Me or Any .art,. thereof, then, AM In that the pl.'S. of and Ilan on We Pledged Nods In favor of the Ra&1•arad Dawrs o9 eu.h 1,Ms or of such nut.., .. siva .... say be, shell M m Ion &.. In effort. For purpose. Of the p.... din' ..resume, the d -Posit of Federal uYl[lae or be nk attifleata• f dapoait [u1tY ae ...6 a r Pr/mlpAi .M ..term. by red let SanurtYW to, We deposit oft any ether a wie..s e Invent..rete vht<h my be au,hooired by Fav fool ria. to thea am evi[iclmt utvNr uth lav to •[[ret eueh • dafo...Or in Ir o....hls trust vlth • MNiing I.$tltutlou or Crust <eap•ny, fol the ao.. b... fit of the m&fote[.d nuns. of wh ..Me at rush ...lea, Up she .ter Day ba, the Principal of and Cos. at a Mich vlil be suflleteM to pal, M -n Me, [M prim 1p,l, intense all p,..lum,r If Any, o such BOMI or A. cal.., a .I'l-.%b%. •hell M .onside..0 •Provtsiennior paYmnt-. Nothing In this a..tinn .hail be d..mdt. ..quit. the County to all any of the outstanding AIM. or any -I.. them' fo, led•aptlan prior to got,, try pursuant to any appli<W1e optloml tod,aptlon ptavleloDa, o to Ia..ir the discretion of the County to dat.nim's vheRMt to annus any rush option for early ..damption. 3[CTION25. lODIitCAII0N 4Y RESOLi7fI0N. Noadwra+aatariaindiffcatlon or Ment of this A—luti.n, or of any vaul-taft -mandatory Woof Or supplemental Kanto. sk b uda wlthout Cha -Mont in erlting of the R+R4nred preen .f Sia or mere in ameneate prtmtpai +allot of the BOOM than ontatanutng farted by such adoar.o -.,Jet medlfttatlnn or maondeonc; provtd+d, h—, that On madiflcaelon o[ aseardsoo.1 "Wit p -nit change In the .atmtq of any Mode or s raduotton to the rate of tnnYaas thmon or in the amour of the Prinlpal obligation thereof, or offmc the u n itiensi yWest.. a! th Conety to 1•p, Lowe and/e[ <ollaat the R-- or ether —.ipta aM re .l.Z. hereon" it any, se henln prevlded, or to pay the printlpai ofand interest on the Londe u the +oma +bell bar— dM, frog the Pl.dgad nmds or redoo. the p+....We r+gi,lnd seen for an advana material madlfired.. or _'or* without the ransom It the Reglatered Omar+ of all of the ROM- aft—v ihenby. 7W f+ngoine ahati net agpiy vtth r+apart n aoppilmen .1 + lug tote adopted far ebe sols Purpa.a of loaning Addltlorel Parity Mod+ o lunger and aobardinsa obligations asked bmunder in atcord+or. Wealth or any resolution eatheriaing the l.—. of the Senior Lt.. MMs. Mnitheranding Cha era"ssapt "a rnpart to any sedlflesxlon Por wodsent regutrina the consent .1'the "a *,Part 0wnsra of .11 of the Mnda sffactad thereby, to the mann. that my MMa era l,uured by A policy of wmSri .l bood Iruu[.eae eM auth MMs ua then+ted In no of the no high - retire eataga.1a. (aithant r+prd to gradation) by either Standard a Poor'+ Cotleratlan o Moody'- Ione torr Smite, Im., or the suet+ Poor of tither of .hall then tc ant of the laser of Pouch sunlelpol be" toaur —poi ley .hall be ba--ti—.ed to --ti—. the emeant of the R.,L.—ad reran of such Cl 9rarid+d, t ver, a copy of aurh soatfitacia o[ •a+.dunt shell be provid.d co td Rlereaf. ra.ing romans net len than thirty (30) days prior to the +((arrive data BCCTION Td. SEneAtILITY. 1! an nn" or once o[ Lh cawnsnta, a,, w-ta o Pravlal+ns et thf. Rsaalotion .hmld ba bald contrary to any +rpnn P—t—n of law or eoncrely to the polity or aePrna Cas, though not erpnariy prahlhtted. Apt. public polity, +bell for Any re n vhat....or be hald (mend, .her anch tOlon+ts• l9ra+lhls or P relater •hell be null "ted vola and shell be doeMd ng runt+, agreemanta aM yrevisI— heteOf. act -hall 1. m v -y affect the v+lidity thereof or of the BOM+ leaned be,: -.1. Staltal 27. REPRAtER. All noelutions or parte of neoiuctons in .....Act slth this Re-lutlon at any Pere halo! 1-, to Cha axone o[ rush con[lfe t, hereby re".1.6, BMION n. LFFf4TIVg fere. Tht. Mrelutlon .hall take *[fact xmedlaraly Cpm Sn "eeption. P79Ml"2D I11—nig" GOIIDLILKS (1) direct obtirf ationm of the United state. or America end--rltja. fully and Urconi tionally quarintoed thatunit•dtgtatiepoiRAtnutric•orinafpei and interact by ("Dtr•at Obligation.")! abllgatlot ad fu12yy guaranteed Cartiticat•s tt bsneficiai t"; Sen of tba azport-Import Bank o! the onitd atatu7 unlor debt ebligatien• of the =Aru Mesa Igen Mnkrt aab"ntur�e of the ►darai bMo . g. attatien, 9Yazanbd maztgaga-sh.oked +evrns"nt Mit onl Mei•--through obligation a[ the Title XI financing at thga0,jCOrta�ritthnet quarantted Adsiniatr•tian, mortgage_b"red geurltio end senior dash" Lange, .,u Ot thhe Padaral National Mortgage Akilorash"Lebb •ma partleSpatlan National and min terydtbtcypobliyPotion o[ •glia l.4...I Moble loan Oas yMe.ns+yrratian (cellaotively, ellyPnpy (3) direct ebllgatien et any tet- 01 the United stab. direct or .nyy "uLalv!•!on at i00eacy thersof vhoae atba rrad 4ansrsi o_aitgatian QebL 2# rated "Al" or I`* to Oabody.i4 `veators 6rvia" os Obiigatian toiley and ot�)eonditipr�i.ilt ° + er any any stat•, aabetvlafon Por • • y quaranbad by gatural eblSq#tien debt ion ratnr•d •Af'�'�or battardby Mood. Yts Imuran Serviceand •A -v er batter by a i Poore Carport Oi�117 (e) a+am•raiai papas rated "prime -s" by Mody,a xnveetoza so IVW e�nndd A-3• or better by atsda14 a Poor'. CoePoratfon7 (aI eb11 Potion. rated "AP or tatter by Mody'• 3nvgkorm aarv% a �nd "A-" or bettor by abnd.rd a PeoY'. GarporatTant (q d=6t11!st Pd"rLL funds or be.... accepter_... o[ any bank which ab inch ottfei 1.Inattda Fourth finath. United Sqn a"tn, ppzovldd ions opinlaru era related tpoothe azt�imilastoblige tion tis infozeiabl� aq�ipetdip>ait PrinclPA1 Office or any branch of such bink, vhleh, a. ala #n unaecur"d, oninaord and unguaranteed abiigatlon ntd "pzls#-3" or "AI" or batter b Moody* Investor• prvlaa ,,re�qq aA-1" gr wA-a try batter by standard a paoris Orparation, or The [oceeu/n6 —.11tlon ver- offered by Comtaalonsr Mo ked for its adoption. The action -a + ortded by C. -'I' er end, Upon bef.A put to a von, eh+ rota vee as foitnsa: Chat run aiohard N. Bird Vita Chairman Jahn W. Ttpptn Comle-tonsr Fran a. Adm• ComteslonsY Carolyn X. fg.art Comtartoner rennsth B. Mach. the Chat— thnupon Met +na the Rnolutlan duly Foaled and adopted all day of . 1993. SCARS Or COUNTY Commis"O."9 Or INDIAN RIVER COIMFY, FLORIDA (SFAL) Richard N. gird, Chelram 1-tfray R. Bann, t.,k APPROVED AS TO FOAM AND WAL SUFFICIENCY Charles P. Vltunsc County A--, a. i• to Lead bank of a parent bank holding 11 -1001Y an unlnurdunaaod and unguaranteed obligation m, un ating e retina raquSreaent. in {a.} above, (T) deposits of any bank or .awing• and loan mmocletion which has Comb nod Ca itai, SUZILUa and undivided profits at not less then $3 million, provided Such deposits era fully inured by the Pederu Deposit Ineuranee corporation or ►#doral Savings and Loan Insurance corporation, (a) lneNOtmants In a many -market fund rated "Am" or "Am -G" or batter by at.. old A Poor'* Corporation, (9) r•purchesa agra•m•nt. with a term of on• year or lean with any Ih-titut)an with debt rated "AA+ or eomnarciel paper rated A-1" (In Oath Came by standard a Poor'. Corporation), (10) purchase agreements collateralized by Direct Obligation or Agency obligation. with any Zn4estoraa proteaat lionlCorporatio jurledltCion ora any Cpamat *1 bank, if eUph broker/dealer r tank here en unln•und, unascurad and on us, obligation ratedde-i" pr "Al" or batter by Xoody's Inveatora sorilce, and A-1" or "A-" r better by standard a Foot's corporation, prpvideds (A) a vaster rspurth... egr.... nt or specific wrltt.n,r•purchas. agr.... nt governs the transaction; and (a) the securities are bud ire. end clear at any It-- by the Tete. or an I. 'd third party acting iel2y as .rat fps the Truetu, san much third VV ty !. (a) a FWar.1 _ago.t.., ank, (b) a bankavhieh is a mesb.r o! tea Yed.ral Deposit In,,,._: Cprppratlpn end which h.a 0osbind pipltu, on,,lua anQ undivldad profits of teat lass ttian Ela mii3ton, Cr Loy •bank approved in writlnq for much purpou by ►inMola Ou.Yanty Insurance C -PIT am the TrYebe #Aril hsY. r.p•SY•d sitter Confirmation from such third partyear o[ anYtl1 N - 19ant Canthi Tru 0ao,dand (C) a ppetrfected first Security lntereat under the Uniton Camme..I I Cde, or book Sntry procd—: P—cribad at li C.P.B. lOa.i et e.g. or of C,►.R. 030,0 at e.g, to aucA At 4: le erected !or the benefit or the Tru#b#I and Lrhibit A ahiblt A [ate i of 3 oto 1 of ) (0) the repurchase agreement her i term of thirty dale or lose, or the Truster will value Na as lateral oeouritia no lass fequ ently than - Monthly and will liquidate the unilateral esaarlties It any datiaiemy in the sequined - aollararal p*raant&ga to not restored within two besinesr day* of esseh valuation, and (E) the repurchaae agreeesnt matured at least tan - drys (px ether appsopriata liquidation period) prior to a debt erry es payment date, and {t! xikation lt to tht Value aMoUnnt oftthesaopureMs in pnd into obligation, including 701 a& and interest, - is equal to at least 300lr abd (11) lavestmant a emant* with a bank or Inesranoe CompttngtuMlany t anobli itimn(aavr aaIaiwtipp uninsured and rated •Ai• or bet V by Moody-, Investor& SIMI, and •A -e or better by by i poor+r corporation, us In the lead bank of a parent bank holding .."any WthanUdounsecured and uwqquuaranted ibn basting ng squireaents, nmknwnr krt evil prow (A) interest is paid at least *ami-annuallyy at a fixed rate during the entire term at Lha M-aesnt, oonsiotant with bond payment data$, (g) l�tinnvvyestd tbeyrwM*r Myabe Withdrawn not sore saMon&lkdiyy+*iwteslue {yprhovididuauoh naLlae shy be aesnde6 or cancele8+ t any ties prior to the withdrawal date), and (C) the agr*emsnt ie not subordinated to any other abnYdigatl.no of such insurenco company or hank, (0) the nems quarMted Interest rate will 6s paid an My future deposits an to restore the seaeWe to it required asaunt, and (E) the Tresses& esuivae an opinion of counsel that soon egraement 4s an Mtorreeble obligation at such insurance company or bank. rretbtt A 00250 Pers 1 of J 17 PW Inknik AJY hh bbnkl fnd+ q InknU.. ar kn bmnl APPENDIX D SPECIMEN MUNICIPAL BOND INSURANCE POLICY Financial Guaranty Insurance Company 113 Broadway New fork. NY 10006 212? 312-3000 800' 302-0001 A GE Capital Company Municipal Bond New Issue Insurance Policy Issuer: Bonds: Policy Number: Control Number: Premium: Financial Guaranty Insurance Company ("Financial Guaranty—), it New consideration of the payment of the premium and subject to the terms of and irrevocably agrees to pay to Citibank. N.A., or its soccessor. ag benefit of Bondholders, that portion of the principal and int on the "Bonds") which shall become Due for Payment but un by n Financial Guaranty will make such becomes Due for Payment or on 1h have received Notice of Nonpay the face amount of pri an ince 1 which is th for yme ut is unpaid by reason of Nonpayment by ssu t ty u (i) eviden the nd 1 s 'ght (ii) , ' dud pp •a prin me t Fin u rina i rest indudin the r' is non -cancellable for any reason. The premium on this Policy is not refundable for tiny reason, payment of the Bonds prior to their maturity. This Policy does 1101 insure against less of any i premium which may at any time be payable with respect ue any Bond. Jr V'1,�. by usinesse�ollo g the v o hic Ficial Guaranty shall whichever t ate The I Ag wi - urse to the Bondholder n receipt by t . Fi. I A , in form reasonably satisfactory to it. of to ive paym t e principal or interest Due for Payment end to in mems assignment, that all of the Bondholder's rights to ant shall thereupon vest in Financial Guaranty. llleon y shall become the owner of the Bond, appurtenant coupon or right tu d1 Bond and shell be fully subrogated to all of the Bondholder's rights s right to payment thereof. FGIC is a registered service mark used by Financial Guaranty Insurance (:oanparn• wukr license from its pare or As used herein, the term "Bondholder" means, as to a particular Bond, the person other than the Issuer who, at the time of Nonpayment, is enptled under the terms of such Bell(] to payment thereof. "Due for Pavment" means, when referring to the principal of a Bond, the stated maturity date thereof or the date on which the same shall have been duly called for mandatory sinking fund redemption and does not refer to any earlier date on which payment is due'by reason of call for redemption (other than by mandatory sinking fund redemption), acceleration or other advancement of maturity and ineans, when referring to interest on a nt company. FGIC Cnrlmrateat. Form 9000 (8/92) PsyRe 1 of 2 Financial Guaranty Insurance w CompanyC 115 Broadway FGl. New York. NY 10006 :212'. 31.2.3000 800 33'2-0001 A GE Capital Company Municipal Bond New Issue Insurance Policy Bond, the stated date for payment of interest. "Nonpayment" in respect of a Bond means the failure of the Issuer to have provided sufficient funds to the paying agent for payment in full of all principal and interest Due for Payment on such Bond. "Notice" means telephonic or telegraphic notice, subscrpuendy confirmed i writing. or written notice by registered or certified mail. from a &mdholder or a paving agent for the i01 to Financial Guaranty. "Business Day" means any day other than a Saturday, Sunday ora d h the Fiscal Agent is authorized by law to remain closed. In Witness Whereof, Financial Guaranty has caused this Policy to he affixed signeA by its duly authorized officers in facsimile to lecome effective and b� by virtue of the countersignature of its duly authorized represen1p ik. FDIC is a registered service mark used by Financial Guaranty Insurance Company under license from its parent company. FGIC Corporation. Form 9000 (8/92) Page 2 of 2 Financial Guaranry Insurance Company 115 Broadway New fork. NY 10006 (212)31'3.3000 8001 3.52.0001 AGECapital Company Endorsement To Financial Guaranty Insurance Company Insurance Policy It is further understood that the term '*Nonpayment" in respect of a Bnnd or interest made to a Bondholder by or on behalf of the issuer of such Bum such Bondholder pursuant to the United States Bankruptcy Code by a tuns with a final. nonappealable order of a court having compeien!.jPP0kC1ion. In Witness Whereof. Financial Guaranty has and to he signed by its duly authorized office Guaranty by virtue of the countersignature Ave* • Authorized Officer Citibank, N.A., as Fiscal Agent FGIC is a registered service mark used by Financial Guaranty Insurance Company under licenw from its parent company, FGIC Corporation. Form E•0002 (8/92) pow 1 of 1 APPENDIX E FORM OF OPINION OF BOND COUNSEL RHOADS & SINON ATTORNEYS AT LAW SUITE 301 299 WEST CAMINO GARDENS BOULEVARD BOCA RATON, FLORIDA 33432 Re: Indian River County, Florida $ Aggregate Principal Amount of Water and Sewer Revenue Bonds, Series 1993A and $ Aggregate Principal Amount of Water and Sewer Revenue Bonds, Series 1993B Dated as of March 1, 1993 OPINION We have acted as Bond Counsel in connection with the authorization, sale, issuance and delivery of the Water and Sewer Revenue Bonds, Series 1993A, dated as of March 1, 1993, in the aggregate principal amount of $ and the Water and Sewer Revenue Bonds, Series 1993B, dated as of March 1, 1993, in the aggregate principal amount of $ collectively the "Series 1993 Bonds"), of Indian River County, Florida (the "County"). The Series 1993 Bonds are issued as Additional Parity Bonds under the Resolution hereinafter defined. No other bonds of the County have been issued and are currently outstanding under the Resolution. The Series 1993 Bonds and any Additional Parity Bonds hereafter issued under the Resolution are herein referred to as the "Bonds". The Series 1993 Bonds are issued pursuant to the Constitution and laws of the State of Florida, particularly Chapter 125, Florida Statutes (1992), as amended, and Resolution No. 93 -_,duly adopted by the Board of County Commissioners of the County (the "Board") on — , 1993, as the same may be amended and supplemented (the "Resolution"), and other applicable provisions of law. Under the Resolution, Florida (the "Paying Agent"), has been appointed as paying agent and registrar for the Series 1993 Bonds. The County, pursuant to power and authority vested in it by law, has heretofore acquired and/or constructed water and sewer systems located in the County which, together with any and all improvements, extensions and additions thereto hereafter constructed or acquired and any physically independent water or sewer system hereafter made a part of the System by resolution of the Board, together with any and all improvements, extensions and additions thereto thereafter constructed or acquired, are herein referred to as the "System". The County has determined to retire the Retired Bonds, as defined in the Resolution. The County, pursuant to power and authority vested in it by law, has also determined to acquire, construct, furnish and equip the Series 1993 Projects, as defined in the Resolution. The Resolution provides that the proceeds of the Series 1993 Bonds, together with other available funds of the County, are to be used for the following purposes, inter alia: (i) to retire the Retired Bonds, (ii) to acquire, construct, furnish and equip the Series 1993 Projects, (iii) to make a deposit to the Reserve Account established under the Resolution, and (iv) to pay costs and expenses of issuance of the Series of 1993 Bonds and retirement of the Retired Bonds, all as more fully provided in the Resolution. - 2 - The Resolution contains covenants of the County to comply with provisions of the Internal Revenue Code of 1986, as amended (the "Code"), and applicable regulations promulgated thereunder, inter alia, to preserve the exclusion of interest on the Series 1993 Bonds from gross income for federal income tax purposes. The principal of and interest on the Bonds are payable solely from and secured by a lien on and pledge of the Pledged Funds, as defined in the Resolution, which include the Net Revenues, as that phrase is defined in the Resolution, of the System. Reference is made to the Resolution for terms and conditions upon which certain receipts and revenues pledged under the Resolution may be released from such pledge, and for terms and conditions upon which additional bonds having a lien upon and right to payment from such Net Revenues on a parity with the Series 1993 Bonds may be issued from time to time. The Series 1993 Bonds shall not constitute a general obligation or indebtedness of the County, and the holders thereof shall never have the right to require or compel the exercise of the power of the County to levy ad valorem taxes for the payment of the principal of and interest on the Series 1993 Bonds. As Bond Counsel, we have examined, among other things: certified copies of certain proceedings of the Board with respect to the Series 1993 Bonds and other proofs submitted to us that are relevant to the issuance and sale of the Series 1993 Bonds; a certified copy of the Resolution; certain documents required by the Resolution to be furnished as conditions precedent to issuance and delivery of the Series 1993 Bonds; a no -litigation certificate; a non -arbitrage certificate of the County; a rebate compliance certificate of the County; and MM usual and required closing affidavits, certificates and documents. We also have examined a specimen of an executed Series 1993 Bond and assume that, as required by the Resolution, all of the Series 1993 Bonds have been similarly executed, will be issued in registered form and will be authenticated by the Paying Agent, acting as bond registrar. As to questions of fact material to our opinion, we have relied upon the certified proceedings and other certifications of public officials furnished to us without undertaking to verify such facts by independent investigation. Based on the foregoing, we are of the opinion that: 1, The County is apolitical subdivision of the State of Florida and has the power to issue the Series 1993 Bonds, to acquire, construct, furnish, equip, own-, operate and maintain the 1993 Project, and to own, operate and maintain the System. 2. The Resolution has been duly adopted by the County and is a valid and enforceable instrument. 3. The Series 1993 Bonds are valid and legally binding special obligations of the County and are payable from and secured by a lien upon and pledge of the Pledged Funds, as and to the extent provided in the Resolution, 4. The Series 1993 Bonds and the income therefrom are exempt from taxation under the laws of the State of Florida, except estate taxes and taxes imposed by Chapter 220, Florida Statutes, on interest, income or profits on debt obligations owned by corporations, banks and savings associations. 5. Assuming investment and application of the proceeds of the Series 1993 Bonds as set forth in the Resolution and in the aforementioned non -arbitrage - 4 - certificate, the Series 1993 Bonds are not presently "arbitrage bonds" as described in Section 103(b)(2) and Section 148 of the Code and applicable regulations promulgated thereunder. 6. Interest on the Series 1993 Bonds (including any original issue discount properly allocable to the holder thereof) is excluded from gross income for purposes of federal income taxation and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations under present statutes, regulations and judicial decisions; although it should be noted that in the case of corporations (as defined for federal income tax purposes), such interest is taken into account in determining adjusted current earnings for purposes of such alternative minimum tax. The opinions expressed in this paragraph are subject to the condition that the County comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Series 1993 Bonds in order that the interest thereon be, or continue to be, excluded from gross income for federal income tax purposes, as the County has covenanted to do in the Resolution and other aforementioned documents. Failure to comply with certain of such requirements may cause the inclusion of interest on the Series 1993 Bonds in gross income retroactive to the date of issuance of the Series 1993 Bonds. We express no opinion regarding other federal tax consequences arising with respect to the Bonds. It is to be understood that the rights of the holders of the Series 1993 Bonds and the enforceability of the Series 1993 Bonds and of the Resolution may be subject to bankruptcy, insolvency, reorganization, moratorium and other - 5 - similar laws affecting creditors' rights heretofore or hereafter enacted and that their enforcement may be subject to the exercise of judicial discretion in accordance with general principles of equity. Very truly yours, RHOADS & SINON By: Charles L. Sieck - 6 - RESOLUTION NO. _93-73a RECOFID VC(ilrl!iL) JEPPRFY K. fAAA70N �Ltfil< CIRC.tjI7 CUURT INDIAN I11VE(d CCS., FLA A RESOLUTION 'OF INDIAN RIVER COUNTY, FLORIDA, ABANDONING CERTAIN EASEMENTS ON LOTS 4.a 5, BLOCX 1 XING'S MUSIC LANDS SUBDIVISION, AS RECORDED IN PLAT BOOK 6, PAGE 17 OF THE PUBLIC RECORDS OF INDIAN RIVER COUNTY, FLORIDA. WHEREAS, Indian River County.,has easements as described below, and WHEREAS, the retention of those easements serves no public purposes, NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Indian River County,,Florida that: This release of easement is.executed by Indian River County, a political subdivision of the State of Florida, whose mailing address is 1840 25th Street, Vero Beach, Florida 32960, Grantor, to Arthur Jackson, Jr. & Yolanda E... Jackson,.his wife, their successors, in interest, heirs and assigns, whose mailing address is 3420 50th Place, Lot 43, Box 644 Vero Beach, Florida 32960-6208, Grantee, as follow: Indian River County does hereby abandon all right, title, and interest that it may have in the following described easements: the common three (3) foot side lot utility and drainage easements of Lots 4 & 5, Block 1, King's Music Lands -Subdivision, being the southerly three (3) feet of Lot 4, and the northerly three (3) feet of Lot 5, according to the plat thereof as recorded in Plat Book 6, Page 17 of the Public Records of Indian River County, Florida. Tax parcel control number: 17-32-39-00002-0010-00004.0 THIS RESOLUTION was moved for adoption by Commissioner Eaaert , seconded by Commissioner T i p p i n and adopted on the 6 day of April , 1993, by the following vote: Commissioner Richard N. Bird AYE Commissioner John W. Tippin AYE Commissioner Carolyn K. Eggert AYE Commissioner Kenneth R. Macht AYE Commissioner Fran B. Adams ,AYE I The Chairman declared the resolution duly passed and adopted this 6 day of April 1993. DOCUMENTARY STAMPS mos -70 NM$ 3 JRWKWWCM 1NOYIN R1YFR CArNi co G.) 14.0 CD RESOLUTION No. 93-73 BOARD OF COUNTY, COMMISSIONERS OF.'INDIAN RIVER COUNTY, FLORIDA 1KIchara jw; Bkrq-;7 Attest By is f toy%X 50irtoM,"! C JA)!IK AV, STATE OF FLORIDA COUNTY OF INDIAN RIVER) I HEREBY CERTIFY, that on this day, before mei an officer duly authorized in the State and County aforesaid, to take acknowledgments, personally appeared Richard N. Bird and Jeffrey K. Barton well know to me to be the Chairman of the Board of County Commissioners and Clerk, respectively, of Indian River County, a political 'subdivision of the. State of Florida, and they acknowledged executing the same. WITNESS my 0 _band and f f i 1 1 Beal in the County and State last k aforesaid this.7tk day of 1993. I 4 PAST MOARCOHELD NoWy Pub0c. Stle of elodda Notary Public #),4r* C(& i4e-" mlrz-a Myc"M.Fx-rc- 1--u,128 1993 +fiA6rq'� 7t My Commission Expires: Adrnlil, Z u\r\c\ayj.memo Pulk 91 I 4