HomeMy WebLinkAbout2024-023EXECUTION COPY
RESOLUTION NO. 2024-023
RESOLUTION OF THE BOARD OF COUNTY !
COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA,
SUPPLEMENTING RESOLUTION NO 2023-004 OF THE
COUNTY, AUTHORIZING THE ISSUANCE. OF NOT
EXCEEDING $25,000,000 IN AGGREGATE PRINCIPAL
AMOUNT OF INDIAN RIVER COUNTY,.: FLORIDA
GENERAL OBLIGATION BONDS, SERIES 2024, IN ORDER
TO FINANCE THE COST OF ACQUIRING AND
PRESERVING ENVIRONMENTALLY SENSITIVE LANDS
AND CONSTRUCTING PUBLIC ACCESS IMPROVEMENTS
RELATED THERETO WITHIN THE COUNTY; MAKING
CERTAIN OTHER COVENANTSAND AND AGREEMENTS. IN
CONNECTION WITH THE ISSUANCE OF SUCH BONDS;
PROVIDING CERTAIN TERMS AND DETAILS OF SUCH j
BONDS;. AUTHORIZING THE COUNTY ADMINISTRATOR
OR THE CHIEF DEPUTY. COMPTROLLER OF THE {
COUNTY TO PUBLISH A SUMMARY NOTICE OF SALE
AND TO RECEIVE BIDS: PURSUANT TO A COMPETITIVE
SALE .OF SAID BONDS AND AWARD THE SALE OF SAID
BONDS TO THE RESPONSIVE BIDDER OR BIDDERS
OFFERING THE LOWEST TRUE INTEREST COST TO THE
COUNTY, WHICH SHALL NOT EXCEED FIVE. PERCENT .
(5.00%); AUTHORIZING THE EXECUTION AND DELIVERY
OF SAID BONDS; APPOINTING THE PAYING AGENT AND
REGISTRAR WITH RESPECT TO SAID BONDS;
APPROVING THE PREPARATION AND USE OF A i
SUMMARY NOTICE OF SALE, AN OFFICIAL NOTICE OF
SALE, A PRELI UNARY OFFICIAL STATEMENT AND
FINAL OFFICIAL STATEMENT; AUTHORIZING THE
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ELECTRONIC DISSEMINATION OF THE PRELIMINARY
OFFICIAL. STATEMENT AND OFFICIAL STATEMENT;
AUTHORIZING THE EXECUTION AND DELIVERY OF A
CONTINUING DISCLOSURE CERTIFICATE; AND
PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF INDIAN
RIVER COUNTY, FLORIDA, as follows:
SECTION 1. FINDINGS. It is hereby found and determined that:
(A) On January 31, 2023, the Board of County Commissioners of Indian River County,
Florida (the "County" or "Issuer") duly adopted. Resolution No. 2023-004 (the "Original
Resolution"). All capitalized terms not otherwise defined herein shall have the meanings set forth in
the Original Resolution.
(B) The Original Resolution, as previously supplemented and as supplemented hereby, is
referred to herein as the "Bond Resolution.
(C) The Original Resolution provides for the issuance of bonds thereunder, upon meeting
the requirements set forth in the Original Resolution.
(D) The County deems it to be in the best interests of its citizens and taxpayers to issue its
General Obligation Bonds, Series 2024 (the "Bonds") for the purpose of financing -the acquisition
and preservation of environmentally sensitive lands and the construction of public access
improvements with respect thereto within. the County, as identified by resolution of the County (the
"Project," as described in the Original Resolution).
(E) The principal of and interest on the Bonds and all required sinking fund, reserve and
other payments shall be general obligations of the County, secured by the full faith and credit of the
County and the Ad Valorem Taxes, as provided in the Bond Resolution.
(F) The County deems it necessary: (i) to fix the date, denominations, :amount and
maturities of the Bonds, (ii) to authorize the publication of a Summary Notice of Salein The Bond
Buyer or such other publication as directed by the County Administrator, (iii) to approve the form
and authorize the use of an Official Notice of Sale, Preliminary Official. Statement and a .final
Official Statement, (iv) to authorize the County Administrator or the Chief Deputy Comptroller of
the. County to award the Bonds to the best bidder or bidders upon the terms and conditions and
subject to the limitations set forth herein and the Official Notice of Bond Sale, (v) to appoint a Bond
Registrar and Paying Agent, and (vi) to approve the form of a continuing disclosure undertaking.
(G) The Original Resolution provides that the Bonds shall mature on such dates and in
such amounts, shall bear such rates of interest, shall be payable in such places and shallbe subject to
such redemption provisions as shall be determined by Supplemental Resolution: adopted by the
County; and it is now appropriate that the County determine parameters for such terms and details.
SECTION 2. AUTHORITY FOR THIS SUPPLEMENTAL RESOLUTION. This
Supplemental Resolution is adopted pursuant to Articles 111. and VII of the Original. Resolution, the
provisions of the Act (as defined in the Original Resolution) and other applicable provisions of law.
SECTION3. AUTHORIZATION AND DESCRIPTION OF THE. BONDS. The
County hereby determines to issue a series of Bonds in an aggregate principal amount -not exceeding
$25,000,000, the exact principal amount to be asauthorized by the Official Notice of Sale, to be
-known as its "General Obligation Bonds, Series 2024," for the principal purpose of financing the
Cost of the Project.
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The Bonds shall be dated as of their date of delivery, shall be. issued as fully registered
Bonds, numbered consecutively from one upward in order of maturity with the prefix 'W shall bear
interest from their date of delivery, payable semi-annually, on (except as otherwise established by
the County Administrator based on advice of the County's Financial Advisor) January 1 and July 1
of each year, commencing on January. 1, 2025, at such rates and maturing in iuch amounts on July 1
of such years (except as otherwise established by the County Administrator based on advice of the
County's Financial. Advisor) as to be set forth in the Official Notice of Sale. _ The Bonds shall be
issued in denominations of $5,000 and any integral multiple thereof. -Each Bond shall bear interest
from the Interest Date next preceding the date on which it is authenticated, unless authenticated on
an Interest Date, in which case it shall bear interest from such Interest Date, or, unless authenticated
prior to the fust interest payment date, in which.case it shall bear interest from its date; provided,
however, that if at the time of authentication interest is in default, such Bond shall bear interest from
the date to which interest shall have last been paid. The intereston the Bonds shall be calculated on
the basis of a 360 -day year comprised of twelve 30 -day months.
The principal of and the interest on the Bonds shall be payable in any coin or currency of the
United States of America which on the respective. dates of payment thereof is legal tender for the
payment of public and private debts. The principal of the shall be payable only to the registered
Holder or his legal representative at the principal corporate trust office of the Paying Agent, and
payment of the interest on the shall be made by the Paying Agent on each interest payment date to
the person appearing on the registration books of the Issuer hereinafter provided for as the registered
Holder thereof, by electronic means, draft or check mailed to such registered Holder at his address as
it appears on such registration books. Payment of the principal on all Bonds shall be made upon the
presentation and surrender of such Bonds as the same shall become due and payable:
The Bonds shall be subject to redemption prior to maturity.as:set forth below:
The Bonds maturing on July 1, 2035, and thereafter are redeemable at the option of the
County from any legally available source, in whole or in part and if in part, in any order of maturity
selected by the County, at its discretion, and by lot within a maturity if less than an entire maturity is
to be redeemed, on July 1, 2034, or at any time thereafter, at a. redemption price equal to the
principal amount of the Bonds to be redeemed, together with accrued interest to the date fixed for
redemption.
Notwithstanding the foregoing, if the County's Financial. Advisor, upon consultation with the
Chief Deputy Comptroller of the County, determines that market conditions require different or no
optional redemption provisions for the Bonds or for certain maturities of the Bonds, such different
optional redemption provisions or the exclusion of certain or all maturities.ofthe Bonds from such
optional redemption provisions will be deemed approved by the County so long as:the maximum
redemption premium does not exceed 1% and the first optional redemption period, if any, is not
more than eleven (11) years from the date of issuance of the. Bonds if Bonds are to be subject to
optional redemption.
Any bonds which are designated as Term Bonds in accordance with the Official Notice of
Sale shall also be subject to mandatory redemptionprior to maturity. by lot; in such manner as the
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Registrar may deem appropriate, on July 1(subject to adjustment as described above); in such years,
at a price of par plus accrued interest to the date of redemption; in the annual amounts established by
the winning bidder in consultation with the County's Chief Deputy. Comptroller and Financial
Advisor.
A book -entry -only system of registration is hereby authorized for the Bonds. So long as the
Issuer shall maintain a book -entry -only system with respect to the Bonds, the following provisions
shall apply:
A blanket issuer letter of representations (the "BLoW) was entered into by the. County with.
The Depository Trust Company ("DTC"). It is intended that the Bonds be registered so as to
participate in a global book -entry system with DTC as set forth herein and in such RLoR. The terms
and conditions of such BLoR shall govern the registration of the Bonds. The Bonds shall be initially
issued in the form of a single fully registered Bond for each maturity of such Series. Upon initial
issuance, the ownership of such Bonds shall be registered by the Registrar in the name of Cede
Co. (DTC's partnership nominee) or such other name as may be requested by an authorized
representative of DTC. So long as any Bond is registered in the name of DTC (or its nominee), the
Issuer, the Registrar and the Paying Agent may treat DTC (or its nominee) as the sole and exclusive
holder of such Bonds registered in its name, and all. payments with respect to the principal or
redemption price of, if any, and interest on such Bond ("Payments") and all notices withrespect to
such Bond ("Notices") shall be made or given, as the case may be, to DTC. Transfers of Payments
and delivery of Notices to DTC Participants shall be the responsibility of DTC and not of the Issuer,
subject to any statutory and regulatory requirements s may be in effect from time to time. Transfers
of Payments and delivery of Notices to beneficial owners of the Bonds by DTC.Participants shall be.
the responsibility of such participants, indirect participants and other nominees of such beneficial
owners and not of the Issuer, subject to any statutory regulatory
. and requirements as may be in.effect
from time to time.
Upon (a) receipt by the Issuer of written notice from DTC.(i) to the effect that a continuation
of the requirement that all of the Outstanding Bonds beregistered in the registration books kept by
the . Registrar in the name of Cede & Co., as nominee of DTC, is not in the best interest of the
beneficial owners of the Bonds or (ii) to the effect that DTC is unable or unwilling. to discharge its
responsibilities and no substitute depository willing to undertake the functions ofDTC hereunder can
be found which is able to undertake such functions upon reasonable and customary terms, (b)
termination; for any reason, of the agreement among the County, the Registrar and Paying Agent and
DTC evidenced by the BLoR, or (c) determination by the Issuer that such book -entry only system '
should be discontinued by the County, and compliance with the requirements of any agreement
between the Issuer and DTC with respect thereto, the Bonds shall no longer be restricted to being
registered in the registration books kept by the Registrar. in the name of Cede & Co.,: as nominee of
DTC, but may be registered in whatever name or names Holders shall designate, in accordance with
the provisions hereof. In such event, the County shall issue and the. Registrar shall authenticate,
transfer and exchange Bonds consistent with the. terms hereof, in denominations. of $5,000. or any
integral multiple thereof to the Holders thereof. The foregoing; notwithstanding, until such time as
participation in the book -entry only system is discontinued, the provisions set forth in the BLoR
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shall apply to the registration and transfer of the Bonds and to Payments and Notices with respect
thereto.
SECTION 4. AUTHORIZATION OF THE : PROJECT. The acquisition :and
construction of the Project (including the reimbursement to the Issuer o f certain costs incurred with
respect thereto), is hereby authorized by the Issuer.
SECTION 5. SALE OF THE BONDS. The County Administrator and/or Chief Deputy
Comptroller, or his or her designee, is hereby authorized and directed to sell the Bonds at public sale
by competitive bid and to publish the Summary Notice of Sale in.the form attached hereto as Exhibit
A in The Bond Buver or such other publication as. directed by the County Administrator or his
.designee at least ten (10) days prior to the date of sale, which date of sale shall be determined by the
Chief Deputy Comptroller or her designee, in consultation with the County's Financial Advisor, in an
effort to achieve the lowest interest cost for the. County.
The Official Notice of Sale attached hereto as Exhibit B and the Prelitninary Official
Statement attached hereto as Exhibit C are each hereby approved and authorized to be used in
connection with the sale of the Bonds. The Preliminary Official Statement, upon advice of the
County Administrator, is hereby deemed final for purposes of Rule 15c2-12 of the Securities.and
Exchange Commission (the "Rule"). The Preliminary Official Statement and Official Statement (as
defined below) are authorized to be made available by electronic means. The Preliminary Official
Statement, as amended on the date of sale of the Bonds to delete the preliminary language and as
further amended to reflect the actual interest rates and reoffering terms and any changes ofmaturities
or amounts and with such additional, correcting and conforming changes as shall be approved by the
County Administrator, is hereinafter referred to as the "Official Statement," and as promptly as
possible following the sale. and. within seven (7) business days of.the date. of sale of the Bonds, the
County agrees to make available to the. Underwriters of the. Bonds a sufficient number of copies -of
the Official Statement as necessary to enable such purchasers to comply with -the Rule. The
Chairman and County Administrator are authorized to execute the Official Statement on behalf of
the County, with such changes, completions and amendments as they shall determine are necessary,
or desirable.
The County Administrator or his designee is hereby delegated the authority to award the
Bonds to the responsive bidder offering to purchase the Bonds at the lowest true interest cast to the
County,, which in no event shall exceed five percent (5.00%0), calculated as provided in the Official
Notice of Bond Sale; and with a final maturity date of no later than twenty.(20) years. following the
date of issuance of the Bonds.
SECTION 6. APPLICATION OF BOND PROCEEDS. The proceeds, including accrued
interest and premium, if any, received from the sale of the Bonds shall be applied by the Issuer.
simultaneously with the delivery of such Bonds to the purchaser, as follows:
A. Capitalized interest, if any; shall be deposited into the SinkingFundand shellbe used
only for the purpose of paying interest becoming due on the Bonds.
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B. A portion of the Bond proceeds: shall be deposited in the Project Fund. The Issuer i
covenants and agrees to establish a separate account within the Project Fund- to be known as the
"Indian River County, Florida General Obligation Bonds, Series 2024 Project Account" (hereinafter
referred to as the "2024 Project Account") which shall be used.only for the payment of the cost of
the Project. Moneys in the 2024 Project Account until applied 'in payment ofany.itqnn o f the cost of
the Project, shall be held in trust by the Issuer and shall be subject to a lien and charge in favor of the
Holders of the Bonds, and for the further security of such Holders.
C. To the extent not paid by the original purchaser of the Bonds, the Issuer shall pay all
costs and expenses in connection with the issuance, sale and delivery of the Bonds.
SECTION 7. CONTINUING DISCLOSURE CERTIFICATE. In order to enable the
Underwriter to comply with the provisions of the Rule relating to secondary market disclosure, the
County Administrator is hereby authorized and directed to execute and deliver the Continuing
Disclosure Certificate in the name and on behalf of the County substantially. in the form attached
hereto as Exhibit D, with such changes, amendments, omissions and additions as shall be approved
by the Chairman, her execution and delivery thereof being conclusive evidence of suchapproval.
SECTION & APPOINTMENT OF REGISTRAR AND PAYING AGENT. U.S. Bank
Trust Company, National Association, Jacksonville, Florida, is hereby designated Registrar and
Paying Agent for the Bonds. The Chairman and the Clerk are hereby authorized to enter, into any
agreement which may be necessary to effect the transactions. contemplated by this Section 7.
SECTION 9. GENERAL AUTHORITY. - The: members of the Board of the County
Commission and the officers, attorneys and other agents or employees of the County are hereby
authorized to do all acts and things required of them by this.Supplemental Resolution orthe Original
Resolution, or desirable or consistent with the requirements hereof or, the Original Resolution,
including the execution of such documents necessary to establish a book -entry system of registration
with respect to the Bonds; for the full punctual and complete performance hereof or thereof. Each
member, employee, attorney and officer of the County is hereby authorized and directed to execute
and deliver any and all papers and instruments. and to be and cause. to be done any and all acts and
things necessary or proper for carrying out the transactions contemplated hereunder. The County
Administrator and/or_ the Clerk or any designees thereof are hereby authorized to execute such tax
forms or agreements as shall be necessary to. effect the transactions contemplated hereby, including
designating Bond Counsel to assist or act as agent with respect thereto.
SECTION 10. ORIGINAL RESOLUTION TO CONTINUE, IN FORCE. Except as
herein expressly provided, the Original Resolution and . all the terms and provisions thereof,
including the covenants contained therein, are and shall remain in full force and effect.
SECTION 11. SEVERABILITY AND.INVALID PROVISIONS. ,If any one or more of
the covenants, agreements or provisions herein contained shall be held contrary, to any express
provision of law or contrary to the policy of express law, even though not expressly prohibited, or
against public policy, or shall for any reason whatsoever be held invalid, then such covenants;
agreements orprovisions shall be null and void and shall be deemed separable from -the remaining
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covenants, agreements or provisions and shall in no way affect the validity of any of the other
covenants, agreements or provisions hereof or the Bonds issued hereunder.
SECTION 12. EFFECTNE.DATE. This SupplementafResolution shall become effective
immediately upon its adoption.
The foregoing resolution was offered by Commissioner Farman who moved its
adoption. The motion was seconded by Commissioner nescher and, upon being put to a
vote, the vote was as follows:
Chairman Susan Adams AYE
Vice -Chairman Joseph E. Flescher AYE
Commissioner Joseph Earman AYE
Commissioner Deryl Loar AYE
Commissioner Laura Moss Ate_
The Chairman thereupon declared the resolution passed and adopted this 4th day of June,
2 024.
ATTEST; Ryan L. Butler, Clerk of Court
and Comptroller
Deputy Clerk
Approved as to Form and Le al Sufficiency
_J�
William K. raal,un Attorney
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BOARD OF COUNTY COMMCSSSIO:
.OFINDIAN RIVER COUNTY. FLOP
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EXHIBIT A
FORM OF SUMMARY NOTICE OF SALE
EXHIBIT C
EXHIBIT D
FORM OF CONTINUING DISCLOSURE CERTIFICATE
EXHIBIT A
FORM OF SUMMARY NOTICE OF SALE
NGN DRAFT NoA: 5/21/24
262.14
SUMMARY NOTICE OF SALE
$25,000,000*
Indian River County, Florida
General Obligation Bonds, Series 2024
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Bids for the above captioned bonds will be received by Indian River County, Florida (the
"County") via Parity until 11:00 A.M. (the "Submittal Deadline"), Eastern time, June 20, 2024 or ?
such other date as maybe established by the County Administrator or Chief Deputy Comptroller '
of the County or their respective designee no less than ten (10) days after the date of.publication
of this notice and communicated by Thomson Municipal Market Monitor. not less than twenty (20)
hours prior to the time bids are received (die "Bid Date").
Such bids are to be opened in public as soon as practical after the Submittal Deadline on
said day for the purchase of the Indian River County;. Florida General Obligation Bonds, Series
2024 (the "2024 Bonds"). The 2024 Bonds will mature as specified in the Official Notice of Sale.
Proceeds of the 2024 Bonds shall be used for the purpose of (i) financing the acquisition and
preservation of environmentally sensitive lands and the construction ` of public access
improvements with respect thereto within the County and (ii) paying the costs of issuing the 2024 i
Bonds.
The approving opinion of .Nabors, Giblin .& Nickerson, P.A., Tampa,. Florida, Bond . i
Counsel, will be furnished to the successful bidder at the expense of the County.
Electronic copies of the Preliminary Official Statement .and the Official Notice of Sale
relating to the 2024 Bonds may be obtained at the website address [www.munos.com]. Printed,
bound copies of the Preliminary Official. Statement will be; available on.a limited basis from the
County's Financial Advisor, Joel Tindal, Hilltop Securities, Inc., 450 South Orange Avenue, Suite
225, Orlando, Florida 32801, telephone 407/426-9611, email Joel.tind11@,hilltonsecurities.com.
For more information about the Parity electronic platform, potential bidders may call Parity at
212/849-5021,
Indian River County, Florida
John A. Titkanich, Jr. .
County Administrator
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Dated: June 7, 2024
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*Preliminary, subject to change.
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EXHIBIT B
FORM OF OFFICIAL NOTICE OF SALE
NGN DRAFT NoA: 5/21/24
262.14
OFFICIAL NOTICE OF SALE
$25,000,400'
INDIAN RIVER COUNTY, FLORIDA
GENERAL OBLIGATION BONDS, SERIES 2024
The Indian River County, Florida General Obligation Bonds, Series 2024 (the "2024
Bonds") are being offered for sale in accordance with this Official Notice of Sale. Notice is hereby
given that bids will be received by Indian River County, Florida (the. "Issuer" or. the "County") for
the purchase of the 2024 Bonds via the Parity Bid Submission System("Parity") in the manner
described below until 11:00 A.M., Eastern time, on June 20, 2024, or on such .other date and/or
time as will be established by the County Administrator or Chief. Deputy Comptroller of the
County or their respective designee and communicated by Thomson Municipal Market Monitor
not less than 20 hours prior to the time the bids are to be received. To the extent any instructions
or directions set forth on Parity.conflict with this Official Notice of Sale, the terms of this Official
Notice of Sale shall control. For further information about Parity, and`to subscribe in advance of
the bid, potential bidders may contact Parity at (212) 849-5021. , The use, of Parity shall be at the
bidder's risk and expense, and the Issuer shall have no liability with respect thereto..
BOND DETAILS
The description of the 2024 Bonds, the purpose thereof and the 'security therefor, as set
forth in this Official Notice of Sale, is subject in its entirety to the disclosures. made in the
Preliminary Official Statement. See "DISCLOSURE INFORMATION" herein.
The 2024 Bonds will be issued as fully registered bonds, and when executed and delivered,
will be registered in the name of Cede & Co., as registered owner and nominee for The Depository
Trust Company ("DTC"), New York, New York, which will act as securities depository for the
2024 Bonds. Individual purchases of the 2024 Bonds may be made only in book -entry form in
denominations of $5,000 or integral multiples thereof. Purchasers of the 2024 Bonds (the
"Beneficial Owners") will not receive.physical delivery of bond certificates. As. long as Cede &
Co. is the registered owner of the 2024 Bonds as nominee for DTC, payments of principal and
interest with respect to the 2024 Bonds will be made directly to such registered owner who will in
turn remit such principal and interest payments to DTC participants for subsequent disbursement
to the Beneficial Owners. The Issuer will not be responsible for payments to Beneficial Owners.
The 2024 Bonds will be dated their date of delivery (expected to be July 10, 2024) or such
other date as may be communicated by Thomson Municipal Market Monitor not less.than 20 hours
prior to the time bids are to be received, and shall bear interest from such date and shall be payable
semiannually commencing on January 1, 2025, and on each January 1 and July 1 thereafter until
maturity at the rate or rates specified in such proposals as may be accepted. The proposed schedule
of maturities and amounts are as follows:
* Preliminary, subject to change.
INITIAL MATURITY SCHEDULE FOR THE 2024 BONDS
Maturity Principal
(July 1) Amount*
2025
2026 I
2027
2028
2029
2030
.2031
2032
2033
2034
2035**
2036**
2037**
2038**
2039**
2040**
2041**
2042**
2043**
2044**
* Preliminary; subject to change.
** Term Bond Option as described herein.
NOTE: The Issuer reserves the right to modify the maturity schedule shown above. Any such
modification will be communicated through the Thomson Municipal Market Monitor (See,
"ADJUSTMENT OF PRINCIPAL AMOUNTS" below.)
PAYING AGENT AND REGISTRAR
The Paying Agent and Registrar for the 2024.Bonds will be U.S. Bank Trust Company,
National Association,, Jacksonville, Florida.
ADJUSTMENT OF PRINCIPAL AMOUNTS
The schedule of maturities. set forth above (the "Initial Maturity Schedule") represents an
estimate of the principal amount and maturities of the 2024 Bonds. that will be. sold. The Issuer
reserves the right to change the Initial Maturity: Schedule by announcing any such change not later
than 3:00 p.m., Eastern time, on the business day immediately preceding the date set for receipt of
bids, through Thomson Municipal Market Monitor. If no such change is announced, the Initial
Maturity Schedule will be deemed the schedule of maturities for submission of the bid.
Furthermore, if after final computation of the bids, the " Issuer determines in its sole
discretion that the funds necessary to accomplish the purpose of the 2024" _Bonds is more or less
than the proceeds of the sale of all of the 2024 Bonds, the Issuer reserves the right to increase or
decrease the principal amount, by no more than 15% of the principal amount" of the 2024 Bonds,
or 25% within a given maturity of the 2024 Bonds (to be rounded to the nearest $5,000) or by such
other amount as approved by the winning bidder, provided; that the aggregate principal amount of
the 2024 Bonds may not exceed $25,000,000.
In the event of any such adjustment, no rebidding or recalculation of the bids submitted
will be required or permitted; and the 2024 Bonds of each maturity, as adjusted, will bear interest
at the same rate and must have the same initial reoffering yield as specified immediately after
award of the 2024 Bonds of that maturity; and the Underwriter's Discount on the 2024 Bonds as
submitted by the successful bidder shall be held constant. The "Underwriter's Discount' shall be
defined as the difference between the purchase price of the: 2034 Bonds submitted by the bidder
and the price at which the 2024 Bonds will be issued to the public, calculated from information
provided by the bidder, divided by the par amount of the 2024 Bonds bid However, the award
will be made to the bidder whose bid produces the lowest True Interest Cost ("TIC"), calculated
as specified herein, solely on the basis of the 2024 Bonds offered, without taking into account any
adjustment in the amount of 2024 Bonds pursuant to this paragraph.
REDEMPTION PROVISIONS
The 2,024 Bonds maturing on or."al ter July 1, 2035. will be subject to_optional redemption
prior to maturity on and after July 1, 2034 at a redemption price of par plus accrued interest to the
redemption date. The"2024 Bonds maturing on and prior to July 1, 2034 will not be subject to
optional redemption prior to maturity.
TERM BONDS OPTIONS
Any bidder may, at its option, specify that the maturities of the 20:24 Bonds maturing after
July 1, 2034 will consist of term bonds which are subject to mandatory sinking fund redemption
in consecutive years immediately preceding the maturity thereof (each a "Term Bond") as
designated in the bid of such bidder. In the event that the bid of thesuccessful bidder specifies
that apermitted maturity of the 20244 Bonds will be -.a Term Bond, such Term Bond will be subject
to mandatory sinking fund redemption on July 1 in each applicable year, in the principal amount
for such year as set forth hereinbefore under the heading "INITIAL MATURITY SCHEDULE
FOR THE 2024 BONDS," at a redemption price equal tothe principal amount thereof to be
redeemed together with accrued interest thereon to the redemption date, without premium.
AUTHORITY AND PURPOSE
The 2024 Bonds are being issued under the zuthority of the Florida Constitution; Chapter
166.021, Florida Statutes, and other applicable provisions of law (collectively; the "Act"), and
Resolution No. 2023-004, adopted by the Board of County Commissioners of the County ` on
January 31, 2023,: as supplemented (the "Resolution").
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The 2024.Bonds are being issued for the purpose of financing the acquisition and
preservation of environmentally sensitive lands and the construction of public access
improvements with respect thereto in.and for the Issuer.
SECURITY
The 2024 Bonds are secured by the full faith and credit of the County, which has covenanted
to levy an ad valorem tax without limitation as to rate or amount to pay principal and.interest on
the 2024 Bonds.
[MUNICIPAL BOND INSURANCE
The purchase of municipal bond insurance, if available, will be at the option and expense
of the bidder. The successful bidder will be responsible for the payment of all costs associated with
any such insurance, including the premium charged by the insurer. The bidder understands, by
submission of its bid, that the bidder is solely responsible. for the selection of any insurer and for
all negotiations with the insurer as to the premium to be paid. If all or a portion of the Series 2024
Bonds are awarded on an insured basis, reference to the insurance policy will appear -on the Series
2024 Bonds and in the Official Statement; however, .the provisions. of the financing documents
will not be altered nor will the County, consent to make additional representations, undertakings or
warranties.
In addition, if the successful bidder is arranging for bond.insurance for all or a portion of
the Series 2024 Bonds, it also shall provide the amount of the premium to be paid and certification
that the present value of the premium is less than the present value of the interest reasonably
expected to be saved as a result of the insurance and that the premium does not exceed a reasonable
arms -length charge for the transfer of credit risk accomplished through the bondinsurance. Insured
ratings with the use of bond insurance, if required, are to be applied for by the; successful bidder,
and costs incurred for such ratings must be paid at the successful bidder's expense]
RATING
Standard & Poor's Ratings Group has assigned a municipal bond rating of "
( ) to the 2024 Bonds.
TERMS OF BID AND BASIS OF AWARD
Proposals must. be unconditional and for the purchase of all of the 204 :Bonds. The
aggregate purchase price, inclusive of original issue discount ("OID), original issue premium
COIP") and underwriter's discount, may not be less than 100% of the principal amount of the 2024
Bonds. The reoffering price of the 2024 Bonds may not be less than 98% of the -principal amount
of the 2024 Bonds for any single maturity thereof.
The 2024 Bonds shall bear interest expressed in multiples of one-eighth (1/8) or one -
twentieth (1/20) of one (1) per centum. The use of split or supplemental interest coupons will not
be considered and a zero rate or blank rate will.not be permitted. All 2024 Bonds maturing on the
same date shall bear the same rate of interest.
The 2024 Bonds will be awarded to the bidder. offering to purchase the 2024 Bonds at the
lowest annual interest cost computed on a TIC basis: The annual TIC will be determined by
doubling the semi-annual interest rate necessary to discount the semi-annual debt servicepayments
on the 2024 Bonds back to the Net Bond Proceeds (defined as the par amount of the 2024. Bonds,
plus any OIP, less any OID and underwriters' discount on the 2024 Bonds, calculated :on a 360 day,
year to the Closing Date, as defined below). The TIC mustbe calculated to four (4) decimal_ places:
If more than one bid offers the same lowest TIC, the successful bid will be selected by lot from
among all such. bids NO BID SHALL BE ACCEPTED WITH. A TIC GREATER THAN
5.00%,
THE ISSUER RESERVES THE RIGHT TO REJECT ALL BIDS OR ANY BID NOT
CONFORMING TO THIS OFFICIAL NOTICE OF SALE: THE ISSUER ALSO RESERVES
THE RIGHT TO WAIVE, IF PERMITTED BY LAW, ANY IRREGULARITY OR
INFORMALITY IN ANY PROPOSAL. THE ISSUER SHALL NOT REJECT ANY
CONFORMING BID, UNLESS ALL CONFORMING BIDS ARE REJECTED.
GOOD FAITH DEPOSIT
If the County selects a winning bid, then the. successful bidder must submit a':'Good Faith
Deposit" (the "Deposit") to the .County in the form ofa. wire transfer, in the 'amount of $250,000
not later than 12:00 noon, Eastern time on the business day following the date of the award. The
Deposit of the successful bidder will be collected and the proceeds thereof retained by the Issuer.
to be applied as partial. payment for the. 2024 Bonds and no interest will be allowed or paid upon
the amount thereof, but in the event the successful bidder shall fail to comply with the terms of the
bid, the proceeds thereof will be retained as and for full liquidated damages.
STANDARD FILINGS, CHARGES AND CLOSING DOCUMENTS
The winning bidder . will be required to make the standard filings and maintain the
appropriate records. routinely required pursuant to MSRB Rules G-8, G-11 and G-36. The winning
bidder will be required to pay the standard MSRB charge for the 2024 Bonds purchased. In
addition, those who are members of SIFMA will be required to -pay SIFMA's standard charge per
bond. The winning bidder will also be required to execute certain closing documents required by
Florida law or required by Bond Counsel (as defined below) in connection with the delivery of its
tax opinion. See "DISCLOSURE; AMENDMENTS TO NOTICE OF SALE; NOTIFICATION
OBLIGATIONS OF PURCHASER" herein.
CUSIP NUMBERS
any delay of the date of delivery of the 2024 Bonds. Hilltop Securities Inc:, (the "Financial
Advisor"), will request the assignment of CUSIP numbers.prior to the We of die 2024 Bonds.
DELIVERY OF THE 2024 BONDS --
The Issuer will pay' the cost of preparing the 2024 Bonds. The successful bidder is
responsible for DTC. eligibility and related DTC costs.. Delivery of and payment for the 2024
Bonds will be via DTC Fast on or about July 10, 2024 (the "Closing Date") in New York, New
York, or such other time and place mutually acceptable to the successful bidder and the Issuer.
Payment of the full purchase price, less, the Deposit,.shall be made to the Issuer not later than 12;00 i
P.M., Eastern time on the Closing Date, in Federal Reserve Funds. of the :United States. of America,
without cost to the Issuer.
The legal opinion of Nabors, Giblin & Nickerson, P.A. eBond Counsel") will be furnished
without charge to the successful bidder at the time of delivery of the 2024 Bonds. For a further
discussion of the content of that opinion and the proposed form of the approving opinion, see the 1
Preliminary Official Statement for the 2024 Bonds.
' I
There will also be furnished at: the time of delivery of the- 2024 Bonds; a certificate or j
certificates of the Issuer (which may be included in a consolidated closing certificate) relating to
the accuracy and completeness of the Official Statement; and stating, among other things, that
there is no litigation or administrative action or proceeding pending or, to the -knowledge of the
Issuer,, threatened, at the time of delivery of the 2024 Bonds, (a) to restrain or enjoin or seeking to
restrain: or enjoin the issuance and delivery of the 2024. Bonds or (b). affecting the validity of the
2024 Bonds, and that the Preliminary Official Statement has been deemed by the Issuer to be a
"final official statement" for purposes of SEC Rule .15c2 -12(b)(3) and (4).
The successful bidder will be responsible for the clearance or exemption with respect to
the status of the 2024 Bonds for sale under the securities or "Blue Sky" laws of the several states
and the preparation of any surveys. or memoranda in connection with such sale.
ll
ESTABLISHMENT OF ISSUE PRICE I
The winning bidder shall assist the Issuer in establishing the issue price of the 2024 Bonds
and. shall execute and deliver to the Issuer on or prior to the closing date for. the 2024 Bonds an 1
"issue. price" or similar certificate setting forth the reasonably expected initial offering prices to
the public or the actual sales price or prices of the 2024 Bonds, together with the supporting pricing
wires or equivalent communications, substantially in the applicable form attached hereto as Exhibit
A-2, with such modifications as may be appropriate or necessary, in the reasonable judgment of
the winning bidder, the Issuer and Bond Counsel.
I
The Issuer intends that the provisions of Treasury Regulation Section L148-1(f)(3xi)
adefinin�he initial sale ocompetitive f the 202 B ads " for purposes ("competitive �g the issue _ price of the 2024 Bonds) will �
apply sale requirements") because.
I
- f
6
(2) all bidders shall have: an equal opportunity to bid;
(3) the Issuer may receive bids from at least .three underwriters of municipal
bonds who have established industry reputations .for underwriting new issuances of
municipal bonds; and
(4) the Issuer anticipates awarding the sale of the 2024 Bonds to the bidder who
submits a firm offer to purchase the 2024 Bonds at the lowest true interest cost, as set forth
in this Official Notice of Sale.
Any bid submitted pursuant to this Official Notice of Sale shall be considered a firm offer
for the purchase of the 2024 Bonds, as specified in the bid. BY SUBMITTING A BID FOR THE
2024 BONDS, A BIDDER REPRESENTS AND WARRANTS TO THE ISSUER THAT THE
BIDDER HAS AN ESTABLISHED INDUSTRY REPUTATION FOR UNDERWRITING NEW
ISSUANCES OF MUNICIPAL BONDS SUCH AS THE 2024 BONDS AND SUCH BIDDER'S
BID IS SUBMITTED FOR. AND ON BEHALF OF SUCH BIDDER BY. AN OFFICER OR
AGENT WHO IS DULY AUTHORIZED TO BIND THE BIDDER TO A LEGAL, VALID AND
ENFORCEABLE CONTRACT FOR THE PURCHASE OF THE 2024 BONDS. Once the bids
are communicated electronically via the Parity System to the Issuer, each bid will constitute an
irrevocable offer to purchase the 2024 Bonds on the terms herein and therein provided.
In the event that the competitive sale requirements are not. satisfied, the Issuer shall so
advise the winning bidder. In such case, the Issuer shall treat the. first price at which 10% of a
maturity of the 2024 Bonds is sold to the public (the "10% o test") as the issue price of that maturity,
applied on a maturity -by -maturity basis. The winning bidder shall advise the Issuer if any maturity
of the 2024 Bonds satisfies the 10% test as of the date and time of the award of the 2024 Bonds.
The Issuer will not require bidders to comply with the "hold -the -offering -price rule" set forth in
Treasury Regulation Section 1.148-10)(2)(ii) and therefore does not intend to use the initial
offering price to the public as of the sale date of any maturity of the 2024 Bonds as the issue price
of that maturity. Bids will not be subject to cancellation in the event that the competitive sale
requirements are not satisfied. Bidders should LrMM their bids on the assumption that all of the
maturities of the 2024 Bonds will be subject to the 10% test in order to establish the issue price of
the 2024 Bonds.
If the competitive sale requirements are not satisfied, then until the 10%o test has been
satisfied as to each maturity of the 2024 Bonds, the winning bidder agrees to promptly report to
the Issuer the prices at which the unsold 2024 Bonds of each maturity have been sold to the public.
That reporting obligation shall continue,. whether or not. the closing date for the 2024 Bonds has
occurred, until the 10% test has been satisfied for each maturity or until all 2024 Bonds of that
maturity have been sold.
By submitting a bid and if the competitive- sale requirements are not met; each bidder
confirms that: (i) any agreement among underwriters, any selling group agreement and each retail
7
distribution agreement (to which -the bidder is a party) relating to the initial sale of tho 2024 Bonds
to the public, together with the related pricing wires, contains or willcontain language obligating
each underwriter, each dealer who is a member of the selling group, and each broker-dealer that is
a party to such retail. distribution agreement, as applicable, to report the prices at whch.it sells to
the public the unsold 2024 Bonds of each maturity allotted to it until it. is notified by the winning
bidder that either the 10% test has been satisfied as. to the 2024 Bonds of that maturityor all 2024
Bonds of that maturity have been sold to the public, if and for so long as. directed by winning
bidder and as set forth in the related pricing wires,'.and (ii) any agreement among underwriters
relating to the initial sale of the 2024 Bonds to the public, together with the related:pricing wires,
contains or will contain language obligating each underwriter that is a party to a retail distribution
agreement to be employed in connection with the. initial sale of the 2024 Bonds to. the public to
require each broker-dealer that is a party to such retail distribution agreement -to report.the prices
at which it sells to the public the unsold 2024 Bonds of each maturity allotted to it until it is notified
by the winning bidder or such underwriter that either the 10% test has been satisfied as to the 2024
Bonds of that maturity or all 2024 Bonds of that maturity have been sold to the public, if and for
so long as directed by the winning bidder or such underwriter and as set forth in the related pricing
wires.
Sales of any 2024 Bonds to any person that is a related party to an underwriter shall not
constitute sales to the public for purposes. of this Official Notice of Sale. Further, for purposes of
this Official Notice of Sale:
.(i) "public" means any person other, than an underwriter or a related party,
(ii) "underwriter" means (A) any person that agrees pursuant to a written
contract (i.e. this Official Notice of Sale).with the Issuer (or with the: lead underwriter to
form an underwriting syndicate) to participate in the initial sale of the 2024 Bonds to the
public and (B) any person that agrees pursuant to a written contract directly or indirectly
with a person described in clause (A) to participate in the initial. sale' of the 2024 Bonds to
the public (including a member of a selling group or a party: to a retail distribution
agreement participating in the initial sale of the 2024 Bonds to the public),
(iii) a purchaser of any of the 2024 Bonds is. a "related party". to an underwriter
if the underwriter and the purchaser are :subject, directly or indirectly, to (i) at least 50%
common ownership of the voting power or. the total value of their stock,: if both entities are
corporations (including direct ownership by one corporation of another), (ii) more than
50% common ownership of their capital interests or profits interests, if both entities are
partnerships (including direct ownership by one partnership of another), or (iii) more than
50% common ownership of the value of the outstanding stock of the corporation or the
capital interests or profit interests. of the partnership, as applicable, if one entity is a
corporation and the other entity is a partnership.
. (including direct ownership of the
applicable stock or interests by one entity of the other), and
(iv) "sale date" means the date that the 20.24 Bonds are awarded by the Issuer to
the winning bidder.
8
DISCLOSURE; AMENDMENTS TO NOTICE OF SALE;
NOTIFICATION OBLIGATIONS OF PURCHASER
This Official Notice of Sale is not intended as a disclosure document and 'bidders are
required to obtain and carefully review the Preliminary Official Statement before submitting a bid.
This Official Notice of Sale, may be amended from time to time after its initial publication
by publication of amendments thereto not less than 20 lours prior to the bid date and time by
Thomson Municipal Market Monitor. Each bidder will be charged with the responsibility of .
obtaining any such amendments and complying with the terms thereof.
Prior to delivery of the 2024 Bonds to the successful bidder, the. successful bidder shall file
with the Issuer a statement as described in Section 218.38 1 c 2 Florida Statutes containing the
underwriting spread (including management fee, if any), and the amount of any fee, bonus or
gratuity paid in connection with the 2024 Bonds to any person not regularly employed by the
successful bidder. This statement shall be filed with the Issuer even if no such management fee or
underwriting spread has been charged by the successful bidder or no such fee, bonus or gratuity
has been paid by the successful bidder, and such filing shall be a condition precedent to the delivery
of the 2024 Bonds by the Issuer to the successful bidder.
The successful bidder, by submitting its bid, agrees to furnish to the Issuer and Bond
Counsel a certificate verifying information as to the bona fide initial offering prices or yields of
the 2024 Bonds to the public and sales of the 2024 Bonds appropriate for determination of -the
issue price of, and the yield on, the 2024 Bonds under the Internal Revenue Code of 1986, as
amended, in the form attached hereto as Exhibit A-2, and such other documentation as and at the.
time requested by. Bond Counsel.
The successful bidder shall also verify its winning bid in writing to the Issuer by executing
a printed copy of its winning bid as reported on Parity.
The winning bidder is required to provide a Truth in Bonding. Statementpursuant to Section
218.385, Florida Statutes, and to disclose the. payment of any "finder's fee" pursuant to Section
218.386, Florida Statutes, prior to the award of the 2024 Bonds, as set forth in Exhibit A-1 to this
Official Notice of Sale:
OFFICIAL STATEMENT
The Issuer shall furnish at its expense within seven (7) business -days after the 2024 Bonds
have been awarded tothe successful bidder, or at least five (5) business days before the Closing
Date, whichever is earlier, a reasonable number of copies of the final Official Statement, which,
in the judgment of the Financial Advisor to the County will permit the successful bidder to comply
with applicable SEC and MSRB rules. The successful bidder may arrange for additional copies
of the final Official Statement at its expense.
CONTINUING DISCLOSURE
In order to assist bidders in complying with SEC Rule.15c2=12, the Issuer will undertake
to provide, or cause to be provided, certain financial information and operating data and to provide
.notices of certain events, if material. Such information will be filed with the Municipal Securities
Rulemaking Board through its Electronic Municipal Market Access System (EMMA). Notices
of material events will be filed with the. Municipal Securities. Rulemaking Board through EMMA.
A summary of such undertaking is contained in the Preliminary Official Statement.
DISCLOSURE INFORMATION
Copies of the Preliminary Official Statement "deemed final" (except for permitted
omissions) by the Issuer in accordance with SEC Rule 15c2=12 must be obtained from the
Financial Advisor, Hilltop Securities Inc., 450 South Orange Avenue, Suite 225, Orlando; Florida
32801, (407) 426-9611 before a bi& is submitted. The Issuer's Preliminary Official Statement end
Official Notice of Sale are also. available for viewing in electronic format at
nm://www.munios:.com].
CHOICE OF LAW
Any litigation or claim arising out of any. bid. submitted (regardless of the 'means of
submission) pursuant to this Official Notice of Bond Sale shall be governed by and construed in
accordance with the laws of the State of Florida. The venue situs for any: such action shall. be the
state courts of the Nineteenth Judicial Circuit in and for Indian River County, Florida.
NOTICE OF BIDDERS REGARDING
PUBLIC ENTITY CRIMES
A person or _ affiliate who has been placed on the convicted vendor list -following a
conviction for a public entity crime may not submit a bid on a contract to provide any goods or
services to a public entity; may not submit a bid on a contract with a public .entity for the
construction or repair of. a public building or public work, may not submit bids on leases of real
property to . a public entity, . may not be awarded or perform work as a contractor,. supplier,
subcontractor, or consultant under a contract with any public entity, and may not transact business
with any public entity in excess of the threshold amount provided in. Section 287.417, for
CATEGORY TWO for a period of 36 months from; the date of being placed on the 'convicted
vendor list.
EXHIBIT A-1
TRUTH -IN -BONDING STATEMENT
AND DISCLOSURE
In compliance with Section 218.385, Florida Statutes, as amended, the undersigned bidder
submits the following Truth -In -Bonding Statement with respect to the Indian River County,
Florida General Obligation Bonds, Series. 2024 (the "Bonds") (NOTE: For information purposes
only and not a part of the bid):_
Indian River County, Florida (the "Issuer") is proposing to issue $ ' of
the Bonds for the purpose of financing the acquisition and preservation of
environmentally sensitive lands and the construction of public access
improvements with respect thereto within the County. The Bonds are expected to
be repaid over a period of approximately years. Ata forecasted interest rate
of %, total interest paid over the life of the Bonds will be $
The source of repayment or security for the Bonds is a pledge of the full faith and
credit of the Issuer, as more fully described in the Preliminary Official. Statement
and Official Notice of Sale.
In compliance with Section 218.386, Florida Statutes, the undersigned, on behalf of itself
and all other members of the underwriting group, if any, hereby certifies that neither it. nor :any
member of the underwriting group have paid any "finder's fees" as defined in:Section 218.386,
Florida Statutes or any bonus fee or gratuity in connectionwith the sale of the Bonds, except as
provided below:
Bidder's Name:
By:
Title:
Date:
Preliminary, subject to change.
A-1-1
EXHIBIT A-2
CERTIFICATE WITH RESPECT TO "ISSUE PRICE"
The undersigned, on behalf of (" "), hereby represents and
warrants that it has an. established industry reputation for underwriting new issuances of municipal.
bonds and certifies as set forth below with respect to the sale of the above -captioned obligations
(the Bonds").
[Alternate I Competitive Safe. Harbor Met]
1. Reasonably Expected Initial Offering Price. (a). As of the Sale Date, the reasonably
expected initial offering prices of the Bonds to the Public by are the prices listed in
Schedule A (the "Expected Offering Prices"). The Expected Offering Prices are the prices for the
Maturities of the Bonds used by in formulating its bid to purchase the Bonds.
Attached as Schedule B are true and correct copies of the bid provided by to purchase
the Bonds and the pricing wire or equivalent communication for the Bonds. .
(b) was not given the opportunity to review other bidsprior to submitting
its bid.
(c) The bid submitted by constituted a firm offer to purchase the Bonds.]
[Alternate 2 Competitive Sale Requirements Not Met _ General Rule to Apply]
[L Sale of the Bonds. As of the date of this certificate, for each Maturity of the Bonds,
the first price at which at least 10% of such Maturity of the Bonds was sold to the Public is the
respective price listed in Schedule A. Each maturity of the Bonds of which at1east 10% of such
maturity has not yet been sold to the public (the "Unsold Bonds,") is also identified in Schedule A.
Attached as Schedule B are true and correct copies of the bid provided by to purchase
the Bonds, and the pricing wire or equivalent communication for the Bonds. has and
will comply with the requirements set forth under the heading "Establishment of Issue Price
Certificate" in the Official Notice of Sale for the Bonds, including reporting on the We prices. of
the Unsold Bonds after the date hereof as provided therein.]
2. Defined Terms. (a) Issuer means Indian River County, Florida
(b) Maturity means Bonds with the same credit and payment terms. Bonds with
different maturity dates, or Bonds with the same maturity date but different stated interest rates,
are treated as separate Maturities.
(c) Public means any person (including an individual, trust, estate, partnership,
association, company, or corporation) other than an Underwriter or a related party to an
Underwriter. The term "related party" for purposes: of this certificate generally means any two or
more persons who have greater than S0: percent common ownership, directly or indirectly.:
A-2-1
(d) Sale Date means the first-day on which there is a binding contract in writing for the
sale of a Maturity of the Bonds. The Sale Date of the Bonds is 52024.
(e) Underwriter means (i) any person that agrees pursuant. to a'written contract with
the Issuer (or with the lead underwriter to form an underwriting syndicate) to. participate in the
initial .sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract
directly or indirectly with a person described in clause (i) of this paragraph to participate in the
initial sale of the Bonds to the Public (including a member of a selling group ora. party to a retail
distribution agreement participating in the initial sale of the Bonds to the Public).
The representations set forth in this certificate are limited to factual matters only. Nothing
in this certificate represents 's interpretation of any laws, including specifically
Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury
Regulations thereunder. The undersigned understands that the foregoing information will, be relied
upon by the Issuer with respect to certain of the representations set forth in the Certificate as to
Arbitrage and Certain Other Tax Matters relating to the Bonds and with respect to compliance with
the federal income tax rules affecting the Bonds, and by Nabors, Giblin & Nickerson, P.A. in
connection with rendering its opinion that the interest on the Bonds is excluded from gross income
for federal income tax purposes, the preparation of the Internal Revenue Service Forth $038-G,
and. other federal income. tax advice that it may give to the Issuer from time to timeyelating to the
Bonds. -
By:
[Name]
Dated: , 2024 ...
A-2-2
SCHEDULEI
EXPECTED OFFERING PRICES
OR
PRICES OF SOLD AND UNSOLD BONDS
Sch-1-1
SCHEDULE2
COPY OF UNDERWRITER'S BID AND PRICING WIRE
Sch-2-1
EXHIBIT C
PRELIMINARY OFFICIAL STATEMENT DATED JUNE , 2024
NEW ISSUE - BOOK -ENTRY ONLY
See "RATING" herein
In the opinion of Nabors, Giblin & Nickerson, P.A., Tampa, Florida ("Bond
Counsel'), under existing statutes, regulations, rulings and court decisions and subject to
the conditions described herein under "TAXMATTERS, " interest on the Series 2024 Bonds
is (a) excludable from gross income of the owners thereof for federal income tax purposes
except as otherwise described herein under the caption "TAX MATTERS, " and (b) not an
item of tax preference for purposes of the federal alternative minimum tax; provided,
however, with respect to certain corporations, interest on the Series 2024 Bonds is taken
into account in determining the annual adjusted financial statement income for the purpose
of computing the alternative minimum tax imposed on such corporations. Such interest,
however, may be subject to other federal income tax consequences referred to herein under
"TAX MATTERS." See "TAX MATTERS" herein for a general discussion of Bond
Counsel's opinion and other tax considerations.
Logo
$[ l
INDIAN RIVER COUNTY, FLORIDA
GENERAL OBLIGATION BONDS,
SERIES 2024
Dated: Date of Delivery Due: July 1, as shown on inside cover
The Indian River County, Florida General Obligation Bonds, Series 2024 (the
"Series 2024 Bonds") will be issued by Indian River County, Florida (the "County") as
fully registered bonds in denominations of $5,000 and integral multiples thereof. Interest
on the Series 2024 Bonds will be payable semiannually on each January 1 and July 1,
commencing on January 1, 2025, by check or draft U.S. Bank Trust Company, National
Association, as Paying Agent, to the registered owner thereof or by electronic means.
Principal of and redemption premium, if any, on the Series 2024 Bonds is payable upon
presentation and surrender at the principal corporate trust office of the Paying Agent.
The Series 2024 Bonds initially will be registered in the name of Cede & Co., as
registered owner and nominee for The Depository Trust Company, New York, New York
("DTC"), which will act as securities depository for the Series 2024 Bonds. Series 2024
Bonds will be available to purchasers under the book -entry system maintained by DTC
through brokers and dealers who are, or act through, Direct Participants (as defined herein).
Purchasers of the Series 2024 Bonds (the 'Beneficial Owners") will not receive physical
delivery of bond certificates. Ownership by the Beneficial Owners of the Series 2024
Bonds will be evidenced by book -entry only. As long as Cede & Co. is the registered
owner as nominee of DTC, payments of principal, interest and premium, if any, will be
made directly to such registered owner which will in turn remit such payments to the Direct
Participants for subsequent disbursement to the Beneficial Owners. See "DESCRIPTION
OF THE SERIES 2024 BONDS — Book Entry Only System" herein.
The Series 2024 Bonds are being issued for the purpose of (1) financing costs of the
acquisition and, preservation of certain environmentally sensitive lands, and the
construction of public access improvements with respect thereto, as described in the plans
and specifications on file with the County, and (2) paying certain costs and expenses
relating to the issuance of the Series 2024 Bonds.
The Series 2024 Bonds are being issued by the County under the authority of Article
VII, Section 12 of the Constitution of the State of Florida, Chapter 125, Florida Statutes,
and other applicable provisions of law, and pursuant Resolution No. 2023-004 adopted by
the Board of County Commissioners (the "Board") of the County on January 31, 2023, as
supplemented by Resolution No. adopted by the Board on June _, 2024
(collectively, the 'Bond Resolution"). The issuance of certain general obligation bonds
such as the Series 2024 Bonds was approved by a majority of the qualified electors of the
County voting in a bond referendum held on November 8, 2022 and validated by a
judgment of the Circuit Court of the Nineteenth Judicial Circuit of the State of Florida, in
and for the County, on April 27, 2023.
The Series 2024 Bonds are subject to redemption prior to their stated maturities, as
more particularly described herein. See "DESCRIPTION OF THE SERIES 2024 BONDS
— Redemption Provisions" herein.
The Series 2024 Bonds are general obligation bonds of the County to which the full
faith, credit and taxing power of the County are irrevocably pledged in the manner and to
the extent described in the Bond Resolution. The Series 2024 Bonds are payable from ad
valorem taxes levied without limitation as to rate or amount on all taxable property within
the County sufficient in amount to pay the principal of and interest on the Series 2024
Bonds. See "SECURITY FOR THE SERIES 2024 BONDS" herein.
SEE INSIDE COVER PAGE FOR THE MATURITY SCHEDULE
This cover page and the inside cover page contains certain information for quick
reference only. They are not, and are not intended to be, a summary of this issue. Investors
must read the entire Official Statement, including the Appendices, to obtain information
essential to the making of an informed investment decision.
Electronic bids only for the Series 2024 Bonds pursuant to the provisions of the
Notice of Sale will be received by the County pursuant to the IHS Markit's
Parity/Bidcomp competitive bidding system in the manner and at the time and/or date
described in the Official Notice of Sale.
The Series 2024 Bonds are offered when, as and if issued and received by the
underwriter, subject to the approving legal opinion of Nabors, Giblin & Nickerson, P.A.,
Tampa, Florida, Bond Counsel. Certain legal matters will be passed upon for the County
by William K DeBraal, Esq., County Attorney, and certain disclosure matters will be
passed upon by Nabors, Giblin & Nickerson, P.A., Tampa, Florida, as Disclosure Counsel
to the County. Hilltop Securities Inc., Orlando, Florida, is acting as Financial Advisor for
the County. It is expected that the Series 2024 Bonds will be available for delivery through
the facilities of DTC in New York, New York, on or about July _, 2024.
Dated: June , 2024
*Preliminary, subject to change.
Maturity Principal Interest Initial
(July 1) Amount Rate Yield Price CUSIP Nos. * *.
2025
2026
2027
* Preliminary, subject to change.
"Copyright, CUS1P Global Services. CUSIP is a registered trademark of the American Bankers Association. CUSIP
data herein is provided by. CUSIP Global Services, which is managed on behalf of the American Bankers Association
by
data,
Research Systems, Inc. All rights reserved.. This data. is not intended to create a database and does not
serve in any way as a substitute for CUSIP Global Services. The County is not responsible for the use of the CUSIP
numbers referenced herein nor is any representation made by the County as -to their correctness. The CUSIP numbers
provided herein are included solely for the convenience of the readers of this Official Statement. The CUSIP number
for a specific maturity is subject to being changed after the issuance of the. Series 2024 Bonds as a result. of various
subsequent actions including, but not limited to, a refunding in whole or in part of as a result. of the pfocuremeat.of
secondary markets portfolio insurance or other similar enhancement by investors that is applicable to all or a portion
of certain maturities of the bonds
fi May be combined into Term Bonds. The maturities of the Series 2024 Bonds may consist of Serial` Bonds and/or.
Term Bonds. [There is no limitation on the number of Term Bonds, provided.oniy principal 'amounts maturing on and
after July 1, 2035 may be combined into Term Bonds], See "TERM BONDS OPTIONS" in the Official Notice of Sale
for the Series 2024 Bonds:
INDIAN RIVER COUNTY, FLORIDA
.BOARD OF COUNTY COMMISSIONERS
SusanAdams ... .................... .. ........................................................... Chairman
Joseph E. Flescher....................................................................................... Vice Chairman
Joseph Earman............................................................................................Commissioner
Deryl Loar..................................................................................................... Commissioner .
Laura Moss ............. Commissioner
COUNTY ADMINISTRATOR
John A. Titkanich, Jr., ICMA-CM
CLERK OF THE CIRCUIT COURT AND COMPTROLLER
AND EX -OFFICIO CLERK OF THE BOARD OF COUNTY COMMISSIONERS
Ryan L. Butler
COUNTY ATTORNEY
William K. DeBraal, Esq.
CHIEF DEPUTY COMPTROLLER
Elissa Nagy, CPA, CGFO.
DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET
Kristin Daniels, CGFO
BOND AND DISCLOSURE COUNSEL
Nabors, Giblin & Nickerson, P.A.
Tampa, Florida
i
No dealer, broker, salesman or, other person has been authorized by the County to
give any information or to make any representations other than those contained in this
Official Statement, and if given or made, such other information or representations must
not be relied upon as having been authorized by. the County. This Qfficial Statement
neither constitutes an offer to sell or the solicitation of an offer to buy, nor shall -there be
any sale of the Series 2024 Bonds by any person in any jurisdiction in which it is unlawful
for such person to make such offer, solicitation or sale. The information set forth herein
has been furnished by the County, The Depository Trust Company (as to itself and its book -
entry only system), and other sources which are believed to be reliable,. but such
information is not guaranteed as to accuracy or completeness by, and is not to be construed
as a representation of, the County.. The information and expressions of opinion herein are
subject to change without notice, and neither the delivery of this Oficial Statement nor any
sale made hereunder shall, under any circumstances, create the implication that there has
been no change in the affairs of the County since the date hereof.
THE SERIES 2024 BONDS HAVE NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, NOR HAS THE BOND RESOLUTION. BEEN
QUALIFIED UNDER THE TRUST INDENTURE ACT OF 19395 AS AMENDED,
IN RELIANCE UPON EXEMPTIONS CONTAINED IN SUCH ACTS. THE
REGISTRATION OR QUALIFICATION OF: THE SERIES 2024- BONDS IN
ACCORDANCE WITH APPLICABLE PROVISIONS. OF THE SECURITIES
LAWS OF THE STATES, IF ANY, IN WHICH THE SERIES 2024 BONDS. HAVE
BEEN REGISTERED OR QUALIFIED .. • AND THE EXEMPTION FROM.
REGISTRATION. OR. QUALIFICATION IN CERTAIN OTHER STATES
CANNOT BE REGARDED AS A RECOMMENDATION THEREOF.' NEITHER
THESE STATES NOR ANY OF THEIR AGENCIES HAVE PASSED UPON THE
MERITS OF THE SERIES 2024 BONDS OR THE ACCURACY OR
COMPLETENESS OF THIS OFFICIAL STATEMENT.ANY
REPRESENTATIONS TO THE CONTRARY MAY BE A CRIMINAL OFFENSE.
References herein to laws, rules, regulations; resolutions, agreements, reports and .
other documents do not purport to be comprehensive or definitive. All references to such
documents are qualified in their entirety by reference to the particular document, the full.
text of which may contain qualifications of and exceptions to statements made herein.
Where full texts have not been included as appendices to this Official. Statement they may
be obtained from the County as provided in the final paragraph under "INTRODUCTION"
herein.
Any statements made in this Official Statementinvolving matters of opinion,
forecasts or estimates, whether or not so expressly stated; are set forth as such and not as
representations of fact, and no representation is made that any of the forecasts or estimates
will be realized. The information and expressions of opinion herein are subject to change
ii
TABLE OF CONTENTS
Page
INTRODUCTION...............................................................................................................1
INDIAN RIVER COUNTY................................................................................................
2
ESTIMATED SOURCES AND USES OF FUNDS...........................................................4
DEBTSERVICE SCHEDULE...........................................................................................
5
DESCRIPTION OF THE SERIES 2024 BONDS..............................................................
6
General.............................................................................................................................
6
Book -Entry Only System.................................................................................................
6
Transfer of Series 2024 Bonds........................................................................................
9
Redemption Provisions..................................................................................................10
Selection of Series 2024 Bonds to be Redeemed..........................................................
11
Noticeof Redemption....................................................................................................
l I
Redemption of Portions of Series 2024 Bonds..............................................................
12
Payment of Redeemed Series 2024 Bonds....................................................................
12
Purchase in Lieu of Optional Redemption....................................................................13
SECURITY FOR THE SERIES 2024 BONDS................................................................14
General...........................................................................................................................14
Establishment of Funds and Accounts...........................................................................14
NoDebt Service Reserve...............................................................................................
15
Investments in Funds and Accounts..............................................................................
15
AD VALOREM TAXATION...........................................................................................16
General...........................................................................................................................16
Procedure for Property Assessment...............................................................................
16
Settingthe Millage.........................................................................................................
18
Historical and Current Millages.....................................................................................
18
Procedures for Tax Collection and Distribution............................................................
19
Assessed Value of Taxable Property.............................................................................
21
Ad Valorem Tax Levies and Collections......................................................................
22
PrincipalTaxpayers.......................................................................................................
23
Constitutional Amendments and Legislative Initiatives Affecting Ad Valorem Taxes
23
EMPLOYEE RETIREMENT PLANS AND OTHER POST EMPLOYMENT
BENEFITS..................................................................................................................
31
EmployeeRetirement Plans...........................................................................................
31
FRSInvestment Plan.....................................................................................................
40
Other Post -Employment Benefit Plans..........................................................................
42
LITIGATION....................................................................................................................
48
LEGALMATTERS..........................................................................................................
49
ENFORCEABILITY OF REMEDIES..............................................................................
49
FINANCIALADVISOR...................................................................................................
50
TAXMATTERS...............................................................................................................
50
Opinionof Bond Counsel..............................................................................................
50
iv
Internal Revenue. Code of 1986.....................................................................:..............
50
Collateral Tax Consequences.......................................................... ........................51
Other Tax Matters ...................... ........ ............................
51
Tax Treatment of Original Issue Discount.................................................,.................
52
Tax Treatment of Bond Premium........................................................... ... ........
52
DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS. ...............
53
RATINGS.............................................................. ......... ........ .............. ............... 6....6.54
UNDERWRITING...................................................................................................
54
CONTINUING DISCLOSURE.......................................................... ..................54
FINANCIAL STATEMENTS. .............. ... .... ....... ...... .55
INVESTMENT POLICY OF THE COUNTY...........................................55
CONTINGENT FEES..................................................................................................
56
MISCELLANEOUS.........:..........,...................................................... ........................
56
AUTHORIZATION OF OFFICIAL STATEMENT.....................................................56
Appendix A - General Information Regarding Indian River County
Appendix B - Annual Comprehensive Financial Report for the Fiscal Year ended
September 30, 2023
Appendix C - Form of Bond Resolution
Appendix D - Form of Approving Opinion of Bond Counsel
Appendix E - Form of Continuing Disclosure Certificate
OFFICIAL STATEMENT
Relating to
$[ 1*
INDIAN RIVER COUNTY, FLORIDA
GENERAL OBLIGATION BONDS,
SERIES 2024
INTRODUCTION
The purpose of this Official Statement, which includes the cover page, inside cover
page and the appendices, is to furnish information with respect to the issuance by Indian
River County, Florida (the "County") of $[ J* aggregate principal amount of its
General Obligation Bonds, Series 2024 (the "Series 2024 Bonds").
The Series 2024 Bonds are being issued by the County under the authority of Article
VII, Section 12 of the Constitution of the State of Florida, Chapter 125, Florida Statutes,
and other applicable provisions of law, and pursuant Resolution No. 2023-004 adopted by
the Board of County Commissioners (the 'Board") of the County on January 31, 2023, as
supplemented by Resolution No. adopted by the Board on June _, 2024
(collectively, the 'Bond Resolution").
The issuance of certain general obligation bonds in one or more series in a combined
aggregate principal amount of $50,000,000 was approved by the qualified electors of the
County at a bond referendum held on November 8, 2022 (the "Referendum") and validated
by a judgment of the Circuit Court of the Nineteenth Judicial Circuit of the State of Florida,
in and for the County, on April 27, 2023, the period for appeal of which has expired. The
Series 2024 Bonds are the first series of general obligation bonds to be issued by the County
pursuant to the authority of the Referendum.
Following the issuance of the Series 2024 Bonds, the County will have
approximately $.— * of remaining bonding authority under the Bond
Resolution and the authority of te Referendum herein.
The Series 2024 Bonds are general obligation bonds of the County to which the full
faith, credit and taxing power of the County are irrevocably pledged in the manner and to
the extent described in the Bond Resolution. The Series 2024 Bonds are payable from ad
valorem taxes levied without limitation as to rate or amount on all taxable property within
the County, sufficient in amount to pay the principal of and interest on the Series 2024
Bonds. See "SECURITY FOR THE SERIES 2024 BONDS" herein.
* Preliminary, subject to change
The Series 2024 Bonds are being issued for the purpose of (1) financing costs of the
acquisition and, preservation of certain environmentally sensitive lands, and the
construction of public access improvements with respect thereto, as described in the plans
and specifications on file with the County, and (2) paying certain costs and expenses
relating to the issuance of the Series 2024 Bonds.
The Series 2024 Bonds are subject to redemption prior to their stated maturities, as
more particularly described herein. See "DESCRIPTION OF THE SERIES 2024 BONDS
— Redemption Provisions" herein.
shall serve as the initial Paying Agent and Registrar for
the Series 2024 Bonds.
The County has covenanted to provide certain continuing disclosure information
pursuant to Rule 15c2-12 of the Securities and Exchange Commission relating to the Series
2024 Bonds. See "CONTINUING DISCLOSURE" herein.
Capitalized terms used but not defined herein have the same meanings as when used
in the Bond Resolution unless the context would clearly indicate otherwise. Complete
descriptions of the terms and conditions of the Series 2024 Bonds are set forth in the Bond
Resolution, the form of which is contained in Appendix C of this Official Statement. The
descriptions of the Series 2024 Bonds, the documents authorizing and securing the same,
and the information from various reports and statements contained herein are not
comprehensive or definitive. All references herein to such documents, reports and
statements are qualified by the entire, actual content of such documents, reports and
statements. Copies of such documents, reports and statements referred to herein that are
not included in their entirety in this Official Statement may be obtained from the County.
INDIAN RIVER COUNTY
The Florida Legislature established Indian River County on June 29, 1925. The
County is located on the central Atlantic coast of Florida, approximately 100 miles
southeast of Orlando and 135 miles north of Miami. The County is bordered by Brevard
County to the north, St. Lucie County to the south, and Osceola and Okeechobee Counties
on the west. There are approximately 100 miles of waterfront land in the County, including
23 miles of Atlantic beaches.
The City of Vero Beach is the seat of County government. The County is a
noncharter county established under the Constitution and the Laws of the State of Florida.
A five member Board of County Commissioners, elected at large from five districts,
governs the County. The Board appoints a County Administrator who is responsible for
implementing the policies set forth by the Board. The County Administrator is charged
with the proper fiscal management of the resources of the County. In addition to the Board,
2
there are five elected. Constitutional .Officers serving specific governmental functions:
Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff,, Supervisor, of
Elections, and Tax Collector. Although the majority of the funding for a11. Constitutional
Officers is part of the County's General Fund, the Board does not have direct responsibility
for their operations.
Indian River County provides a full range of services including, :but: not limited to:
construction and maintenance of roadways, sidewalks and other infrastructure, fire
rescue/emergency services, law enforcement, library services, traffic operations and
control, parks and recreational services, golf course, human services, building inspections;
licenses and permits, water/sewer utility services, and refuse collection and disposal.
The County is a political subdivision of the State, and is. governed by the State.
Constitution and the general laws of the State. See "Appendix A - General. Information
Regarding Indian River County" attached hereto.
[Remainder of page intentionally left blank]
3
ESTIMATED SOURCES AND USES OF FUNDS
The proceeds to be received from the sale of the Series 2024 Bonds are expected to
be applied as follows:
Total
SOURCES OF FUNDS
PrincipalAmount ................................... ........................................ $
[Plus/Less] [net] Original Issue [Premium/Discount] :...................
Total Sources of Funds........:............................................................ $
USES OF FUNDS
Deposit to Project Fund ................................................................ $
Costsof Issuance(2)..........................................................................
TotalUses of Funds........................................................................... $
(1) Tobe applied to finance and/or reimburse costs ofthe 2024 Project. See "PURPOSE OF THE BONDS" herein. .
(2) Includes underwriters' discount, legal, financial. advisory, professional, administrative and other. customary
costs of issuance.
DEBT SERVICE SCHEDULE
The following table sets forth the annual debt service requirements with respect to
the Series 2024 Bonds:
Bond Year Ending
(July 1) Principal
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
Totals $
*Totals may not add due to rounding.
�1
Interest
Annual Debt
Service
DESCRIPTION OF THE SERIES 2024 BONDS
General
The Series 2.024 Bonds will be dated their date of delivery and will be issued in fully
registered form, without coupons, in denominations of $`5,000 each or integral multiples
thereof, maturing: on .July 1 in the years and in the principal amounts. set forth on the inside
cover page of this Official Statement. The Series 2024.Bonds will bear interest at the rates
set forth on the inside cover page of this Official Statement, computed on the basis of a
360 -day year, consisting of twelve 30 -day months. Interest on the Series 2024 Bonds will
be payable semi-annually on January I and July l of each year, commencing on January
1, 2025. _U.S. Bank Trust Company, National Association, Jacksonville, Florida, is
serving as the initial Paying Agent and Registrar. .Interest on any Series 2024 Bond will
be paid by check or draft of the Paying Agent or by electronic means to the registered
Holder of such Series 2024 Bond. Except as otherwise set forth under" Book -Entry Only
System" below, principal of the Series 2024 Bonds shall be made upon presentation_ and
surrender of the Series 2024 Bonds at the corporate trust office of the Paying Agent. The
principal of and interest on the Series 2024 Bonds shallbe payable in any coin or currency
of the United States of America which on the respective dates of payment thereof is legal
tender for the payment of public and private debts.
Book -Entry Only System
THE FOLLOWING INFORMATION IN THIS SECTION CONCERNING DTC
AND DTC'S BOOK -ENTRY ONLY SYSTEM HAS BEEN OBTAINED FROM DTC
AND OTHER SOURCES THAT THE COUNTY BELIEVES TO BE RELIABLE AND
THE COUNTY DOES NOT TAKE ANY RESPONSIBILITY FOR THE ACCURACY
THEREOF.
DTC will act as securities depository. for the .Series 2024 Bonds. The Series 2024.
Bonds will be issued as fully -registered bonds registered in the name of Cede & Co. (DTC's
partnership nominee) or such other name. as may be .requested by :an authorized
representative of DTC. One fully -registered. bond certificate will be issued for each
maturity of the Series 2024 Bonds and will be .deposited with DTC. SO LONG AS CEDE
&.CO. IS. THE REGISTERED OWNER OF THE SERIES 2024 BONDS, AS NOMINEE
OF DTC, CERTAIN REFERENCES IN THIS OFFICIAL STATEMENT TO. THE
SERIES 2024 BONDHOLDERS OR REGISTERED OWNERS OF THE SERIES 2024
BONDS SHALL MEAN CEDE & CO. AND SHALL NOT MEAN THE BENEFICIAL
OWNERS OF THE SERIES 2024 BONDS. THE DESCRIPTION WHICH FOLLOWS
OF THE PROCEDURES AND RECORD KEEPING WITH RESPECT TO BENEFICIAL
OWNERSHIP INTERESTS IN THE SERIES 2024 BONDS, PAYMENT OF INTEREST
AND PRINCIPAL ON THE SERIES 2024 BONDS TO DIRECT PARTICIPANTS (AS
HEREINAFTER DEFINED) OR BENEFICIAL OWNERS OF E
THE SES 2024
BONDS, CONFIRMATION AND TRANSFER OF BENEFICIAL OWNERSHIP
6
INTERESTS IN THE SERIES 2024 BONDS, AND OTHER RELATED
TRANSACTIONS BY AND BETWEEN DTC, THE DIRECT PARTICIPANTS AND
BENEFICIAL OWNERS OF THE SERIES 2024 BONDS IS BASED SOLELY ON
INFORMATION FURNISHED BY DTC. ACCORDINGLY, THE COUNTY NEITHER
MAKES NOR CAN MAKE ANY REPRESENTATIONS CONCERNING THESE
MATTERS.
DTC, the world's largest securities depository, is a limited -purpose trust company
organized under the Newyork Banking Law, a "banking organization" within themeaning
of the New York Banking Law, a member of the Federal Reserve System, a "clearing
corporation" within the meaning of the New York Uniform Commercial Code, and a
"clearing agency" registered pursuant to the provisions of Section 17A of the Securities
Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues
ofU.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market
instruments (from over 100 countries) that DTC's participants (the "Direct Participants")
deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants
of sales and other securities transactions in . deposited securities, through electronic
computerized book -entry transfers and pledges between Direct Participants' accounts. This
eliminates the need for physical movement of securities certificates. Direct Participants
include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies,.
Clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary
of The Depository Trust & Clearing Corporation ("DTCC"). DTCC. is the holding
company for DTC, National Securities Clearing Corporation and Fixed Income Clearing
Corporation, all of which are registered clearing agencies. DTCC is owned by the users_ of
its regulated subsidiaries. Access to the. DTC system is also available to others such as
both U.S. and non-U.S. securities brokers and dealers, banks; trust companies, and clearing
corporations that clear, through or maintain a custodial relationship -with a Direct
Participant, either directly or indirectly (the "Indirect Participants"). DTC has. a Standard
and Poor's rating of AA+. The DTC rules applicable to its Participants are on file with the
Securities and Exchange Commission. More information about DTC ' can be found at
www.dtcc.com and www.dtc.org.
Purchases of the Series 2024 Bonds under the DTC system must be made by or
through Direct Participants, which will receive a credit for such Series 2024 Bonds on
DTC's records. The ownership interest of each actual
purchaser ofeach- Series 2024 Bond
(the "Beneficial Owner") is in turn to be recorded on. the Direct and Indirect Participants'
records. Beneficial Owners will not receive written confirmation from . DTC of their
purchase. Beneficial Owners are, however, expected to receive written confirmations
providing details of the transaction, as well as periodic statements. of their holdings, from
the Direct or Indirect Participant through which the Beneficial Owner entered into the
transaction. Transfers of ownership interests in the Series 2024 Bonds are to be
accomplished by entries made on the books of Direct and Indirect Participants acting on
behalf of the Beneficial Owners. Beneficial Owners will not receive certificates
representing their ownership interests in the Series 2024 Bonds, except in the event that
use of the book -entry system for the Series 2024 Bonds is discontinued.
To facilitate subsequent transfers, all Series 2024 Bonds deposited by Direct
Participants with DTC are registered in the name of DTC's partnership nominee, Cede &
Co. or such other name as may be requested by an authorized representative of DTC. The
deposit of the Series 2024 Bonds with DTC and their registration in the name of Cede &
Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC
has no knowledge of the actual Beneficial Owners of the Series 2024 Bonds; DTC's records
reflect only the identity of the Direct Participants to whose accounts such Series 2024
Bonds are credited, which may or may not be the Beneficial Owners. The Direct and
Indirect Participants will remain responsible for keeping an account of their holdings on
behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants,
by Direct Participants to Indirect Participants, and by Direct Participants and Indirect
Participants to Beneficial Owners will be governed by arrangements made among them,
subject to any statutory or regulatory requirements as may be in effect from time to time.
Redemption notices shall be sent to DTC. If less than all of the Series 2024 Bonds are
being redeemed, DTC's practice is to determine by lot the amount of the interest of each
Direct Participant in such Series 2024 Bonds, as the case may be, to be redeemed.
Beneficial Owners of the Series 2024 Bonds may wish to take certain steps to augment the
transmission to them of notices of significant events with respect to the Series 2024 Bonds,
such as redemptions, defaults, and proposed amendments to the Series 2024 documents.
For example, Beneficial Owners of the Series 2024 Bonds may wish to ascertain that the
nominee holding the Series 2024 Bonds for their benefit has agreed to obtain and transmit
notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide
their names and addresses to the Registrar and request that copies of notices be provided
directly to them.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote
with respect to the Series 2024 Bonds unless authorized by a Direct Participant in
accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an
Omnibus Proxy to the County as soon as possible after the record date. The Omnibus
Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to
whose accounts the Series 2024 Bonds are credited on the record date (identified in a listing
attached to the Omnibus Proxy).
Principal and interest payments on the Series 2024 Bonds will be made to Cede &
Co., or such other nominee as may be requested by an authorized representative of DTC.
DTC's practice is to credit Direct Participants' accounts, upon DTC's receipt of funds and
corresponding detail information from the County or the Registrar on the payable date in
accordance with their respective holdings shown on DTC's records. Payments by
Participants to Beneficial Owners will be governed by standing instructions and customary
N.
practices, as is the case with securities held for the accounts of customers in bearer form or
with securities registered in "street name," and will be the responsibility of such Participant
and not of DTC or the County, subject to. any statutory and regulatory requirements as may
be in effect from time to time. Payment of principal and interest to Cede. & Co. (or .such
other nominee as may be requested by an authorized representative of DTC) is the
responsibility of the County. Disbursement of such payments to Direct Participants will
be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners
will be the responsibility of the Direct and Indirect Participants.
DTC may discontinue providing its. services as securities depository with. respect.to
the Series 2024 Bonds at any time by giving reasonable notice to the County:Under such
circumstances, in the event that a successor securities depository is not obtained, Series
2024 Bond certificates are required to be printed and delivered.
The County may decide to discontinue use of the book -entry transfers through DTC
(or a successor securities depository). In that event and upon compliance with applicable
DTC procedures, Series 2024 Bond certificates will be printed and delivered.
Transfer of Series 2024 Bonds
So long as, the Series 2024 Bonds are registered in the name of DTC or its nominee,
the following paragraphs relating to transfer and exchange. of bengfxc f ownership
interests in the Series 2024 Bonds will not apply to the Series 2024 Bonds; :and the transfer
and registration of beneficial ownership- interests in the Series 2024 -Bonds will be.
governed by the rules and procedures of DTC as generally described under
"DESCRIPTION OF THE SERIES 2024 BONDS - Book -Entry Only System; "above.
Series 2024 Bonds, upon surrender thereof at the office of the Registrar with a
written instrument of transfer satisfactory to the Registrar, duly executed by the Holder
thereof or such Holder's attorney duly authorized in writing, may, at. the. option. of the
Holder thereof, be 'exchanged for an equal aggregate principal amount of registered Series
2024 Bonds of the same maturity and same series of any other authorized denominations:
The Series 2024 Bonds issued under the Bond Resolution shall be and have -all the
qualities and incidents of negotiable instruments under the law merchant and the Uniform
Commercial Code of the State of Florida, subject to the provisions for registration and
transfer contained in the Bond Resolution and in the Series 2024 Bonds. So long as any of
the Series 2024 Bonds shall remain outstanding, the County shall maintain and keep at the
office of the Registrar, books for the registration and transfer of the Series 2024•Bonds.
Each Series 2024 Bond shall be transferable only upon the books ofthe "County, at
the office of the Registrar, under such reasonable regulations as the County may prescribe,
by the Holder thereof in person or by such Holder's attorney :duly authorized in writing
upon surrender thereof together with a written instrument of transfer satisfactory to the
9
Registrar duly executed and guaranteed by the Holder or such Holder's duly authorized
attorney. Upon the registration or transfer of any such Series 2024 Bond, the County shall
issue, and cause to be authenticated, in the name of the transferee a new Series 2024 Bond
or Series 2024 Bonds of the same aggregate principal amount, maturity and series as the
surrendered Series 2024 Bond. The County, the Registrar and any Paying Agent or
fiduciary of the County may deem and treat the Person in whose name any outstanding
Series 2024 Bond shall be registered upon the books of the County as the absolute owner
of such Series 2024 Bond, whether such Series 2024 Bond shall be overdue or not, for the
purpose of receiving payment of, or on account of, the principal or Redemption Price, if
applicable, and interest on such Series 2024 Bond and for all other purposes, and all such
payments so made to any such Holder or upon such Holder's order shall be valid and
effectual to satisfy and discharge the liability upon such Series 2024 Bond to the extent of
the sum or sums so paid and neither the County nor the Registrar nor any Paying Agent or
other fiduciary of the County shall be affected by any notice to the contrary.
In all cases in which the privilege of exchanging Series 2024 Bonds or transferring
Series 2024 Bonds is exercised, the County shall execute and the Registrar shall
authenticate and deliver such Series 2024 Bonds in accordance with the provisions of the
Bond Resolution. Execution of Series 2024 Bonds in the same manner as is provided in
the Bond Resolution for purposes of exchanging, replacing or transferring Series 2024
Bonds may occur at the time of the original delivery of the Series 2024 Bonds. All Series
2024 Bonds surrendered in any such exchanges or transfers shall be held by the Registrar
in safekeeping until directed by the County to be canceled by the Registrar. For every such
exchange or transfer of Series 2024 Bonds, the County or the Registrar may make a charge
sufficient to reimburse it for any tax, fee, expense or other governmental charge required
to be paid with respect to such exchange or transfer. The County and the Registrar shall
not be obligated to make any such exchange or transfer of Series 2024 Bonds during the
fifteen (15) days next preceding an Interest Date on the Series 2024 Bonds, or, in the case
of any proposed redemption of Series 2024 Bonds, then, for the Series 2024 Bonds subject
to redemption, during the fifteen (15) days next preceding the date of the first mailing of
notice of such redemption and continuing until such redemption date.
Redemption Provisions
Optional Redemption of Series 2024 Bonds. The Series 2024 Bonds maturing on or
before July 1, 20_ are not subject to optional redemption prior to maturity. The Series
2024 Bonds maturing on or after July 1, 20_ are subject to redemption prior to their stated
dates of maturity at the option of the County in whole or in part on any date on or after
July 1, 20_, and if in part, from such maturities as the County shall designate, at the
Redemption Price of par plus accrued interest to the redemption date.
Mandatory Redemption of Series 2024 Bonds. The Series 2024 Bonds maturing on
July 1, 20_ are subject to mandatory sinking fund redemption prior to maturity, by lot, in
such manner as the Registrar deems appropriate, at a Redemption Price equal to principal
10
amount of the Series 2024 Bonds to be redeemed, plus interest accrued thereon to the date
of redemption, commencing on July 1, 20_, and on each July 1 in the following years and
in the following Amortization Installments:
Amortization
Year Installment
*Final Maturity
Selection of Series 2024 Bonds to be Redeemed
The Series 2024 Bonds shall be redeemed only in the principal amount of $5,000
each and integral multiples thereof. The County shall, at least thirty-five (35) days prior to
the redemption date (unless a shorter time period shall be satisfactory to the Registrar, but
in no event less than twenty-five (25) days) notify the Registrar of such redemption date
and of the principal amount of Series 2024 Bonds to be redeemed. For purposes of any
redemption of less than all of the outstanding Series 2024 Bonds of a single maturity, the
particular Series 2024 Bonds or portions of Series 2024 Bonds to be redeemed shall be
selected not more than thirty-five (35) days and not less than twenty-five (25) days prior to
the redemption date by the Registrar from the Outstanding Series 2024 Bonds of the
maturity or maturities designated by the County or by such method as the Registrar shall
deem fair and appropriate and which may provide for the selection for redemption of Series
2024 Bonds or portions of Series 2024 Bonds in principal amounts of $5,000 and integral
multiples thereof. If less than all of a Term Bond is to be redeemed, the aggregate principal
amount to be redeemed shall be allocated to the Amortization Installments on a pro -rata
basis unless the Issuer, in its discretion, designates a different allocation.
Notice of Redemption
Notice of such redemption, which shall specify the Series 2024 Bond or Bonds (or
portions thereof) to be redeemed and the date and place for redemption, shall be given by
the Registrar on behalf of the County, and (A) shall be filed with the Paying Agent of such
Series 2024 Bonds and (B) shall be mailed first class, postage prepaid, at least twenty (20)
days prior to the redemption date to all Holders of Series 2024 Bonds to be redeemed at
their addresses as they appear on the registration books kept by the Registrar as of the date
of mailing of such notice. Failure to mail notice to the Holders of the Series 2024 Bonds to
be redeemed, or any defect therein, shall not affect the proceedings for redemption of Series
2024 Bonds as to which no such failure or defect has occurred. Failure of any Holder to
11
receive any notice mailed as provided in the Bond Resolution shall not affect the
proceedings for redemption of such Holder's Series 2024 Bonds.
In addition to the mailing of the notice described above, each notice of redemption
and payment of the redemption price shall meet the following requirements; provided,
however, the failure to provide such further notice of redemption or to comply with the
terms of this paragraph shall not in any manner defeat the effectiveness of a call for
redemption if notice thereof is given as prescribed above:
(A) Each further notice of redemption shall be sent to the Electronic Municipal
Market Access of the Municipal Securities Rulemaking Board within ten (10) business
days of the mailing of the redemption notice to Holders.
(B) Each further notice of redemption shall be sent to such other Person, if any,
as shall be required by applicable law or regulation.
The County may provide that a redemption may be contingent upon the occurrence
of certain condition(s) and that if such condition(s) do not occur the notice of redemption
will be rescinded, provided notice of rescission shall be mailed in the manner described
above to all affected Series 2024 Bondholders as soon as practicable.
So long as the Series 2024 Bonds are registered in the name of Cede & Co., as
nominee of DTC (or in the name of a successor securities depository), notices of
redemption shall only be given on behalf of the County to Cede & Co., or any successor
securities depository. See "DESCRIPTION OF THE SERIES 2024 BONDS - Book -Entry
Only System" herein.
Redemption of Portions of Series 2024 Bonds
Any Series 2024 Bond which is to be redeemed only in part shall be surrendered at
any place of payment specified in the notice of redemption (with due endorsement by, or
written instrument of transfer in form satisfactory to, the Registrar duly executed by, the
Holder thereof or such Holder's attorney duly authorized in writing) and the County shall
execute and the Registrar shall authenticate and deliver to the Holder of such Series 2024
Bond, without service charge, a new Series 2024 Bond or Series 2024 Bonds, of the same
interest rate, maturity and series, and of any authorized denomination as requested by such
Holder, in an aggregate principal amount equal to and in exchange for the unredeemed
portion of the principal of the Series 2024 Bonds so surrendered.
Payment of Redeemed Series 2024 Bonds
Notice of redemption having been given substantially as described above, the Series
2024 Bonds or portions of Series 2024 Bonds to be redeemed shall, on the redemption date,
become due and payable at the Redemption Price therein specified, and from and after such
date (unless the County shall default in the payment of the Redemption Price) such Series
12
2024 Bonds or portions of Series 2024 Bonds shall cease to bear interest. Upon surrender
of such Series 2024 Bonds for redemption in accordance with said notice, such Series 2024
Bonds shall be paid by the Registrar and/or Paying Agent at the appropriate Redemption
Price, plus accrued interest. All Series 2024 Bonds which have been redeemed shall be
canceled by the Registrar and shall not be reissued.
Purchase in Lieu of Optional Redemption
Notwithstanding anything in this Resolution to the contrary, at any time the Series
2024 Bonds are subject to optional redemption pursuant to the Bond Resolution, all or a
portion of the Series 2024 Bonds to be redeemed as specified in the notice of redemption,
may be purchased by the Paying Agent, as trustee, at the direction of the County, on the
date which would be the redemption date if such Series 2024 Bonds were redeemed rather
than purchased in lieu thereof at a purchase price equal to the redemption price which
would have been applicable to such Series 2024 Bonds on the redemption date for the
account of and at the direction of the County who shall give the Paying Agent, as trustee,
notice at least ten days prior to the scheduled redemption date accompanied by an opinion
of Bond Counsel to the effect that such purchase will not adversely affect the exclusion
from gross income for federal income tax purposes of interest on such Series 2024 Bonds
or any other Outstanding Bonds. In the event the Paying Agent, as trustee, is so directed
to purchase Series 2024 Bonds in lieu of optional redemption, no notice to the holders of
the Series 2024 Bonds to be so purchased (other than the notice of redemption otherwise
required under this Resolution) shall be required, and the Paying Agent, as trustee, shall be
authorized to apply to such purchase the funds which would have been used to pay the
redemption price for such Bonds if such Series 2024 Bonds had been redeemed rather than
purchased. Each Series 2024 Bond so purchased shall not be canceled or discharged and
shall be registered in the name of the County. Series 2024 Bonds to be purchased under
the Bond Resolution in the manner set forth above which are not delivered to the Paying
Agent, as trustee, on the purchase date shall be deemed to have been so purchased and not
optionally redeemed on the purchase date and shall cease to accrue interest as to the former
holder thereof on the purchase date.
[Remainder of page intentionally left blank]
13
SECURITY FOR THE SERIES 2024 BONDS
General
Pursuant to the Bond Resolution, the County has irrevocably pledged its full faith,
credit and taxing power for the full and prompt payment of the principal of and interest on
the Series 2024 Bonds. The Bond Resolution further provides that there shall be levied a
direct annual tax on all taxable property within the County to make such payments.
Provision shall be included and made in the County's annual budget and tax levy for the
levy of the taxes provided in the Bond Resolution. Whenever the County shall, in any
Bond Year, have irrevocably deposited in the Sinking Fund any monies derived from
sources other than Ad Valorem Taxes, said Ad Valorem Taxes may be correspondingly
diminished; but any such diminution must leave available an amount of such taxes, after
allowance for anticipated delinquencies in collection, fully sufficient, with such monies so
deposited from other sources, to assure the prompt payment of principal, interest, and
redemption premiums, if any, falling due prior to the time that the proceeds of the next
annual property tax levy will be available. Such Ad Valorem Taxes shall be levied and
collected at the same time, and in the same manner, as other ad valorem taxes of the County
are assessed, levied and collected. The Ad Valorem Taxes shall be levied and collected in
accordance with all applicable law, including, but not limited to, the Referendum
Resolution. The payment of the principal of or Redemption Price, if applicable, and
interest on the Series 2024 Bonds shall be secured forthwith equally and ratably by a pledge
of and lien upon the Pledged Funds, and the County has, pursuant to the Bond Resolution
irrevocably pledged such Pledged Funds to the payment of the Series 2024 Bonds.
"Pledged Funds" is defined in the Bond Resolution as (1) the Ad Valorem Taxes,
and (2) until applied in accordance with the provisions of the Bond Resolution, all moneys,
including investments thereof, in the funds, accounts and subaccounts (other than the
Rebate Fund) established under the Bond Resolution.
Establishment of Funds and Accounts
The monies raised by the County from the levy of Ad Valorem Taxes to pay debt
service on the Series 2024 Bonds shall be deposited by the County in the Sinking Fund.
The monies in the Sinking Fund allocable to the Series 2024 Bonds shall be used solely for
the payment of the principal of and interest on the Series 2024 Bonds as the same become
due and payable, and the registered owners of said Series 2024 Bonds shall have a lien on
all such monies in the Sinking Fund until paid and applied in the manner provided in the
Bond Resolution.
Monies in the Sinking Fund allocable to the Series 2024 Bonds shall be disbursed
for: (i) the payment of the interest on the Series 2024 Bonds secured by the Bond
Resolution as such interest falls due, (ii) the payment of the principal of the Series 2024
14
Bonds secured by the Bond Resolution at their respective maturities, (iii) the payment of
the redemption of the Series 2024 Bonds secured by the Bond Resolution before maturity
at the price and under the conditions provided therefor, (iv) the purchase of the Series 2024
Bonds in the open market and (v) the payment of necessary charges for paying the Series
2024 Bonds and interest thereon. See "Appendix C — Form of Bond Resolution" herein.
Proceeds from the sale of the Series 2024 Bonds shall be deposited into the Project
Fund to be used to finance the costs of the 2024 Project and pay costs associated with the
issuance of the Series 2024 Bonds.
The moneys required to be accounted for in each of the foregoing funds and
accounts established in the Bond Resolution may be deposited in a single account, and
funds allocated to the various funds and accounts established in the Bond Resolution may
be invested in a common investment pool, provided that adequate accounting records are
maintained to reflect and control the restricted allocation of the moneys on deposit in the
Bond Resolution and such investments for the various purposes of such funds and accounts
as provided in the Bond Resolution.
The designation and establishment of the various funds and accounts in and by the
Bond Resolution shall not be construed to require the establishment of any completely
independent, self -balancing funds as such term is commonly defined and used in
governmental accounting, but rather is intended solely to constitute an earmarking of
certain revenues for certain purposes and to establish certain priorities for application of
such revenues as provided in the Bond Resolution.
No Debt Service Reserve
The County has not created any debt service reserve fund or account to secure the
repayment of the Series 2024 Bonds.
Investments in Funds and Accounts
The Bond Resolution provides that moneys on deposit in the Sinking Fund and the
Project Fund, may be invested and reinvested in investments permitted by Florida law and
the County's internal investment policy (See "INVESTMENT POLICY OF THE
COUNTY" herein) maturing not later than the date on which the moneys therein will be
needed for the purposes of such fund or account. Any and all income received by the
County from the investment of moneys in such funds and accounts shall be retained in such
respective funds and accounts.
15
AD VALOREM TAXATION
General
Under Florida law, ad valorem property taxes may be levied only by counties,
school districts, municipalities and certain special districts. No ad valorem taxes may be
levied by the State upon real estate or tangible personal property. The assessment of all
properties and the collection of all county, municipal and other local government property
taxes are consolidated in the office of each County Property Appraiser and County Tax
Collector. The laws of the State of Florida regulating tax assessment are designed to assure
a consistent property valuation method statewide.
The Florida Constitution limits the aggregate rate of ad valorem taxes that may be
levied on real and personal property. The limitation, except as noted below, is ten (10)
mills each for all county and municipal purposes. A mill is equal to one-tenth (0.1) of one
cent of one dollar or $1.00 for every $1,000 of assessed value. The Florida Constitution
excludes from the general 10 mill cap ad valorem taxes which are necessary to pay debt
service on voter approved general obligation bonds, such as the ad valorem taxes that
secure the Series 2024 Bonds and other voter approved levies.
Each respective millage rate, except as limited by law, is set on the basis of estimates
of revenue needs and total taxable property valuations within the taxing authority's
respective jurisdiction. Ad valorem taxes are not levied in excess of actual budget
requirements. In setting millage rates, the county is required by Section 200.065, Florida
Statutes, to assume no less than a 95% tax collection rate.
The following uses of real property are generally exempt from ad valorem taxation:
religious, educational, charitable, scientific, literary and governmental. In addition, there
are a variety of special exemptions, including but not limited to, for widows, hospitals,
homesteads, working waterfronts and homes for the aged and disabled veterans and first
responders. The general "homestead exemption" exempts from taxation the first $25,000
of the assessed valuation of a residence occupied by the owner on a permanent basis, as of
January 1 of the year of valuation. Agricultural land, noncommercial recreational land,
inventory and livestock are assessed at less than 100 percent of fair market value. See also
"AD VALOREM TAXATION - Constitutional Amendments and Legislative Initiatives
Affecting Ad Valorem Taxes" herein.
Procedure for Property Assessment
Real and personal property valuation is determined as of January 1 by each County
Property Appraiser. Except as noted below under "AD VALOREM TAXATION -
Constitutional Amendments and Legislative Initiatives Affecting Ad Valorem Taxes," all
taxable real and tangible personal property must be assessed at 100% of fair market value.
16
The Property Appraiser of Indian River County (the "Property Appraiser")
determines property valuation on real and tangible personal property as of January 1 of
each year. The Property Appraiser determines the valuation of all real and personal
property by July 1 of each year and notifies the County, each municipality within the
County, the Indian River County School District (the "School District") and each other
legally constituted special taxing district as to its just valuation, notes the legal adjustments
and exemptions and the taxable valuation. The taxable valuation is then used by each
taxing body to calculate its ad valorem millage for the budget year. Each taxing body must
advertise its budget, stating the proposed millage and hold public hearings on such budgets.
Final budgets are determined by each taxing body and the millage is certified to the
Property Appraiser by October 1.
Concurrently, the Property Appraiser notifies each property owner of the proposed
valuation and the proposed millage on such property. If the individual property owner
believes that his or her property has not been appraised at fair market value, the owner may
file a petition with the Indian River County Value Adjustment Board (the "Adjustment
Board"). Taxpayers appealing the assessed value or assigned classification of their
property must make a required partial payment of taxes (generally equal to 75% of the ad
valorem taxes due, less the applicable statutory discount, if any) with respect to properties
that will have a petition pending on or after the delinquency date (normally, the following
April 1). A taxpayer's failure to make the required partial payment before the delinquency
date will result in the denial of the taxpayer's petition. The Adjustment Board appoints
independent special magistrates (real estate appraisers and/or attorneys) who hold public
hearings on such petitions and determine whether adjustments to the valuations made by
the Property Appraiser should be made, if such valuations were found not to be fair and at
market value. The Adjustment Board must complete all required hearings and certify its
decision with regard to all petitions and certify to the Property Appraiser the valuation to
be used by June 1 following the tax year in which the assessments were made. These
changes are then made to the final tax roll. The June 1 requirement shall be extended until
December 1 in each year in which the number of petitions filed with the Adjustment Board
increased by more than 10% over the previous year. The decision of the Adjustment Board
may be appealed to the Circuit Court.
The Property Appraiser applies the final certified millage of each taxing body to the
assessed valuation on each item of real and tangible personal property and prepares the
final tax roll which is certified to the Indian River County Tax Collector (the "Tax
Collector") by October 1. This permits the printing of tax bills for delivery on November 1
of each year. The tax bills contain all of the overlapping and underlying millages set by
the various taxing bodies so that all ad valorem taxes are collected by the Tax Collector
and distributed to the various taxing bodies. See "AD VALOREM TAXATION - Assessed
Value of Taxable Property" below for a historical table of assessed valuations.
17
Setting the Millage
The Property Appraiser assesses and the Tax Collector collects all ad valorem taxes
within the County. While one tax bill emanates: from the Tax Collector,:the bill represents
ad valorem taxes levied by the County, the School District, municipalities and other taxing
authorities. The Florida Constitution limits the non -voted millage rate that counties may
levy on an annual basis for county purposes to 10 mills `'$10 per $1,000 of taxable real and
personal property value). The millage limitation does not apply to taxes approved at
referendum by qualified electors in the county for general obligation bonds (such as the
Series 2024 Bonds) and for certain other voter approved levies.
Each respective millage rate, except as limited by law, is set on the basis of estimates
of revenue needs and the total taxable property values. within the taxing authority's.
respective. jurisdiction. Revenues derived from ad valorem property, taxes are budgeted, as
required by Florida law; on the application of millage levies equal to 95% .of the non-
exempt assessed valuation of property in the county. Ad valorem taxes Ore not levied in
excess of actual budget requirements.
Historical and Current Millages
The following table contains the tax millage rates of the County and other taxing
authorities within the County for the Fiscal Years 2020-2024:
Indian River. County, Florida
Property Tax Mllage. Rates for Direct and Overlapping Governments
Fiscal Years 2020-2024
(Millage Rates Rounded to Nearest Thousandth)
Fiscal Year
Other County -wide rates
Emergency Management Services District 2.3655
Land acquisition bond 0.2568
Total. other County -wide rates 2.6223
Total County -wide rate (b) 13.8894
City rates
Fellsmere
Indian River Shores
Sebastian
Orchid
Vero Beach
Average of cities rates
Other special district rates
2.3531
2020
2021
2022
2023
2024
County direct rates
2.3531
2.5000
2.5000
1..0000
2.6964
General fund
3.5475
15475
3.5475
3.5475
3.5475
Municipal service
1.1506
1.1506
1.1506
1.1506
1.1506
Total direct rate (a)
4.6981
4.6981
4.6981
4.6981
4.6981
County -wide district school board rate
6.5690
6.3960
6.2680
5.9850
5.9110
Other County -wide rates
Emergency Management Services District 2.3655
Land acquisition bond 0.2568
Total. other County -wide rates 2.6223
Total County -wide rate (b) 13.8894
City rates
Fellsmere
Indian River Shores
Sebastian
Orchid
Vero Beach
Average of cities rates
Other special district rates
2.3531
2.3531.
2.3531
2.3531
2.3.531
2.3531
2.3531
2.3531
13.4472 13.3192
5.2210:
5.3226
1.3349
1.3349
2.9399
3.1514
1.6000
1.9000
2.5000
2.5000
2.7192 2.8418
1.4091: 1.3929
5.3226
1.3349
3.0043
1.4000
2.5000
13.0362
12.9622
.5.2210.
5.5150
1.3349
1.3349
2.9050
3.1955
1.1000
1..0000
2.6964
2.7680
2.7124 2.6515 2.7627
1.2933 1.0617 1.0657
(a) . Per Florida State Statute 200.081, 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:
(b) Total County -wide rate is borne by all property owners within the County boundaries.
Source: Indian River County Property Appraiser, www.irepa.org
Procedures for Tax Collection and Distribution
All real and tangible personal property taxes are due and payable on November i of
each year, or as soon thereafter as the tax roll is certified and delivered to the Tax Collector.
The Tax Collector mails a notice to each property owner on the tax roll for the taxes levied
by the County, the School District, municipalities within the. County and other .taxing
authorities. Taxes may be paid. upon receipt of such notice, with discounts at the rate of
4% if paid. in the month of November; 3% if paid. in the month of December; 2% if paid in
19
the month of January and I% if paid in the month of February. Taxes paid in the month of
March are without discount. All unpaid taxes on real and personal property become
delinquent on April 1 of the year following the year in which taxes were levied. Delinquent
real property taxes bear interest at the rate of 18% per year from April 1 until a tax
certificate is sold at auction, from which time the interest rate shall be as bid by the buyer
of the tax certificate. Delinquent tangible personal property taxes also bear interest at the
rate of 18% per year from April 1 until paid. Delinquent personal property taxes must be
advertised within 45 days after delinquency, and after May 1, the property is subject to
warrant, levy, seizure and sale.
On or before June 1 or the 60th day after the date of delinquency, whichever is later,
the Tax Collector must advertise once each week for three weeks and must sell tax
certificates on all real property with delinquent taxes. The tax certificates are sold to those
bidding the lowest interest rate to be borne by the certificates. Such certificates include the
amount of delinquent taxes, the penalty interest accrued thereon and the cost of advertising.
Delinquent tax certificates not sold at auction become the property of the County. Florida
law provides that real property tax liens are superior to all other liens, except prior Internal
Revenue Service liens.
To redeem a tax certificate, the owner of the property must pay all delinquent taxes,
the interest that accrued prior to the date of the sale of the tax certificate, charges incurred
in connection with the sale of the tax certificate, omitted taxes, if any, and interest at the
rate shown on the tax certificate (or interest at the rate of 5%, whichever is higher) from
the date of the sale of the tax certificate to the date of redemption. If such tax certificates
or liens are not redeemed by the property owner within two years, the holder of the tax
certificates can cause the property to be sold to pay off the outstanding certificates and the
interest thereon. Provisions are also made for the collection of delinquent tangible personal
property taxes, but in a different manner which includes the possible seizure of the tangible
personal property.
Florida law requires the Tax Collector to distribute the taxes collected to each
governmental unit levying the tax. Such distribution is to be made four times during the
first two months after the tax roll comes into its possession, and once per month thereafter.
[Remainder of page intentionally left blank]
20
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Ad Valorem Tax Levies and Collections
The following table sets forth the amounts billed and the percent collected for ad
valorem property taxes levied by the County for the last ten Fiscal Years:
Indian River County, Florida
Property Tax Levies and Collections (Unaudited)
Last Ten Fiscal Years
[Remainder of page intentionally left blank]
ON
% of Current
% of Total Tax
Total Tax
Current Tax
Tax Collections
Delinquent Tax
Total Tax
Collections to
Year
Levy
Collections
to Tax Levy
Collections
Collections
Tax Levy
2014
$75,101,883
$72,572,593
96.63%
$149,546
$72,722,139
96.83%
2015
79,309,078
76,537,192
96.50
91,754
76,628,946
96.62
2016
87,611,062
84,648,230
96.62
60,147
84,708,377
96.69
2017
93,167,061
90,100,287
96.71
78,624
90,178,911
96.79
2018
102,322,230
98,568,670
96.33
40,811
98,609,481
96.37
2019
108,994,936
105,148,685
96.47
26,255
105,174,940
96.50
2020
118,478,616
114,292,023
96.47
108,270
114,400,293
96.56
2021
119,796,353
115,517,250
96.43
67,544
115,584,794
96.48
2022
126,027,404
121,551,348
96.45
82,076
121,633,424
96.51
2023
143,132,352
137,866,142
96.32
80,377
137,946,519
96.38
Source: Indian River County, Florida Annual Comprehensive Financial Report for the Fiscal Year ended September 30,
2023.
[Remainder of page intentionally left blank]
ON
Principal Taxpayers
The following table sets forth the principal property taxpayers in Indian River
County, Florida for Fiscal Year 2024 (relating to taxes levied in tax/calendar year 2023):
Indian River County, Florida
Principal Property Taxpayers (Unaudited)
Florida Power & Light
Disney Vacation Dev. Inc.
John's Island Club, Inc.
MPT of Sebastian -Steward, LLC
Welltower TCG Ridea Landlord, LLC
TSO Vero -Beach, LP
EPC Guardian, LLC
Adult Community Total Services, Inc.
Windsor Properties
GFVT LLC
Total Principal Property Taxpayers Real Property
Assessed Valuation
Total County Taxable Valuation
Fiscal Year 2024
Taxes Levied
% of Total
in thousands
Rank
Taxes Levied
$1,400,050,404
1
5.26%
154,652,913
2
0.58
97,397,766
3
0.37
69,700,220
4
0.26
64,247,752
5
0.24
61,362,828
6
0.23
60,742,348
7
0.23
58,695,402
8
0.22
57,311,178
9
0.22
53,385,100
10
0.20
$2,077,545,911 7.81%
$26,591,753,468
Sources: Indian River County Property Appraiser; Indian River County, Florida annual budgets.
Constitutional Amendments and Legislative Initiatives Affecting Ad Valorem Taxes
Several amendments to the Florida Constitution and Florida legislative initiatives
affecting ad valorem taxes have been approved by voters in the past including, but not
limited to, the following.
Save Our Homes Amendment. By voter referendum held on November 2, 1992,
Article VII, Section 4 of the Florida Constitution was amended by adding thereto a
subsection which, in effect, limits the increases in assessed just value of homestead
property to the lesser of (1) three percent of the assessment for the prior year or (2) the
percentage change in the Consumer Price Index for all urban consumers, U.S. City
Average, all items 1967=100, or successor reports for the preceding calendar year as
initially reported by the United States Department of Labor, Bureau of Labor Statistics.
Further, the amendment provides that (a) no assessment shall exceed just value, (b) after
any change of ownership of homestead property or upon termination of homestead status
such property shall be reassessed at just value as of January 1 of the year following the year
of sale or change of status, (c) new homestead property shall be assessed at just value as of
January 1 of the year following the establishment of the homestead, and (d) changes,
additions, reductions or improvements to homestead shall initially be assessed as provided
23
for by general law, and thereafter as provided in the amendment. The amendment is known
as the "Save Our Homes" amendment. The effective date of the amendment was January 5,
1993 and, pursuant to a ruling by the Supreme Court of the State of Florida, it began to
affect homestead property valuations commencing January 11 1995. with '1994 assessed
values being the base year for determining compliance.
Constitutional amendments related to ad valorem exemptions. On January 29,
2008, in a special election held in conjunction with Florida's presidential primary, the
requisite number of voters approved. amendments to the State _ Constitution exempting
certain portions of a property's assessed value from taxation. The amendments were
effective beginning with the 2008 tax year. The following is a brief summary of certain
important provisions contained in such amendments:
• Provides for an additional exemption. for. the assessed value of homestead
property between $50,000 and $75,000, thus doubling the existing general.: homestead
exemption for property with an assessed value equal to or, greater than $75,000. See "AD
VALOREM TAXATION - General" herein for a description of the general $25,000
homestead exemption.
• Permits owners of homestead property to transfer their Save Our Homes
benefit (up to $500,000) to a new homestead property purchased within two :yearsof the
sale of their previous homesteadproperly to which such benefit applied if the just value of
the new homestead is greater than or is equal,to the just .value of the prior homestead. If
the just value of the new homestead is less than -the just value of the prior.homestead, then
owners of homestead property may transfer aproportional amount of their Save Our Homes
benefit, such proportional amount equaling the just value of the new homestead divided by
the just value of the prior homestead multiplied by the assessed value of 'the prior
homestead. As discussed above, the Save Our Homes amendment generally limits annual
increases in ad valorem tax assessments for those properties with homestead .exemptions
to the lesser of 3%¢ or the annual rate of inflation.
• Exempts from ad valorem taxation $25,000 of the assessed value of property
subject to tangible personal property tax.
• Limits increases in the assessed value of non -homestead property to 10% per
year, subject to certain adjustments. The cap on increases is in:effect for a:10 -year. period,
subject to extension by an affirmative vote of electors. See "- Extending the Limitation on
Assessed Values of Non -Homesteaded Real Property" :below for information zoncerning
another approved. constitutional amendment to extend the 10% cap on increases of non
homesteaded properties.
Homestead Exemption Increase for Low -Income Seniors and Disabled Veterans... In
the November 7, 2,006 general election, the voters of Florida approved amendments. to the
State Constitution, which provide for an increase in the homestead (ad valorem tax)
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exemption to $50,000 from $25,000 for certain low-income seniors effective January 1,
2007 and provide a discount from the amount of ad valorem taxes for certain permanently
disabled veterans effective December 7, 2006, respectively.
Homestead Portability Amendment. During the 2020 State legislative session, a
constitutional amendment was proposed by the State legislature which would extend the
period for a homestead property owner to transfer a prior Save Our Homes benefit to a new
homestead from two years to three years (the "Portability Amendment"). Specifically, the
Portability Amendment allows a homeowner who establishes a new homestead as of
January 1 to have the new homestead assessed at less than just value if the homeowner
received a prior homestead exemption as of January 1 of any of the immediately preceding
three years. The Portability Amendment was approved by voters on November 3, 2019
and such amendment took effect on January 1, 2021.
Exemptions for Certain Property Uses. In the November 4, 2008 general election,
the voters of the State approved amendments to the State Constitution providing the Florida
Legislature with authority to enact exemptions or special assessment protections for certain
types of property subject to ad valorem taxation, including exemptions for conservation
lands and residential wind damage resistance and renewable energy source improvements,
and restrictions on the assessment of working waterfront properties. Thereafter, legislation
was enacted which creates an exemption for land used exclusively for conservation
purposes. Such exemption applies to property tax assessments made on or after January 1,
2011.
Exemption for Deployed Military Personnel. In the November 2010 general
election, voters approved a constitutional amendment which provides an additional
homestead exemption for deployed military personnel. The exemption equals the
percentage of days during the prior calendar year that the military homeowner was
deployed outside of the United States in support of military operations designated by the
legislature. This constitutional amendment took effect on January 1, 2011.
Exemption for Disabled Veterans. In the November 2012 General Election, voters
approved a constitutional amendment which allows totally or partially disabled veterans
who were not Florida residents at the time of entering military service to qualify for the
combat -related disabled veteran's ad valorem tax discount on homestead property. The
amendment became effective on January 1, 2013.
Exemption for Surviving Spouse of Veterans and First Responders. In the
November 2012 General Election, voters approved a constitutional amendment which
allows the State Legislature to provide ad valorem tax relief to the surviving spouse of a
veteran who died from service -connected causes while on active duty as a member of the
United States Armed Forces and to the surviving spouse of a first responder who died in
the line of duty. The amount of tax relief, to be defined by general law, can equal the total
amount or a portion of the ad valorem tax otherwise owed on the homestead property. The
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amendment became effective on January1, 2011During the 2020 State legislative
session, a constitution amendment was proposed by the State legislature which would
extend the discount on ad valorem taxes provided to certain honorably discharged veterans
to their surviving spouses (the "Surviving Spouse Exemption").: Specifically,. the Surviving
Spouse Exemption allows the same ad valorem tax discount on a homesteadproperty for
combat disabled veterans age 65 or older to transfer to the surviving spouseof a veteran
receiving the discount if the surviving spouse holds the legal or beneficial title to the
homestead, permanently resides thereon, and does not remarry. The amendment was
approved by voters on November 3, 2019 and such amendment took effect on January 1,
2021.
Exemption for Low Income Seniors. In the November 2012 General Election,. voters .
approved a constitutional amendment which allows the State Legislature by general law to
permit counties and municipalities, by ordinance, to grant an:additional hornestead tax
exemption equal to the assessed value of homestead property to certain low income seniors.
To be eligible for the additional homestead exemption, the county or municipality must
have granted the exemption by ordinance, the property must have a just value, of less than
$250,000, the owner must have title to the property and maintained his or her permanent
residence thereon for at least 25 years, the owner must be age 65 years or older and the
owner's annual household income must be less than $27,300. The County has granted this
additional exemption. The additional homestead tax exemption authorized by HJR 169
does not apply to school property taxes.
In the November 2016 General Election, voters approved. a constitutional
amendment changing the existing homestead tax exemption for low-income seniors so that
the value of property owned by eligible senior citizens with a household income of:$20,000 .
or less could be assessed when they first apply for the exemption.. The measure was
designed to ensure eligible seniors' ability to be able to keep their tax exemption even if
their home value exceeded $250,000 in the future. The amendment : took : effect on
January 1, 2017 but is retroactive to January 1, 2013,.meaning a senior who .qualified for
the exemption in 2013, but lost it, would regain the exemption.
Various Changes to Ad Valorem Assessment, Exemptions and Definitions. During
its 2013 Regular Session, the Florida Legislature passed Senate Bill 1830 ("S!3..1830"),
which was signed into law by the Governor and creates a number of changes affecting:ad
valorem taxation which became effective as of July 1, 2013. First, SB 1830 provides long-
term lessees the ability to retain their . homestead exemption and related assessment
limitations and exemptions in certain instances and extends the time for property owners
to appeal value Adjustment Board decisions on transfers of assessment limitations to
conform with general court filing time frames. Second, SB 1.830 inserts the term.
"algaculture" in the definition of "agricultural purpose" and inserts the term "aquacultural
crops" in the provision specifying the valuation of certain .annual agricultural .crops,
nonbearing fruit trees and nursery stock. Third, SB 1830 allows for an automatic renewal
26
for assessment reductions related to certain additionsto .homestead .properties used
as living quarters for a parent or grandparent and aligns related appeal and penalty
provisions to those for other homestead. exemptions. Fourth, SB 1,830 deletes.a statutory,
requirement that the owner of Florida real property permanently reside upon. such property
in order to qualify for a homestead exemption. This change conforms the statute at issue
with the Florida Constitution by allowing non-resident owners of property to claim a
homestead exemption if a person legally or naturally dependent upon the owner
permanently resides on such property. Fifih, SB 1830 clarifies a drafiing errorregarding
the property tax exemptions counties and cities may provide for certain low-income
persons age 65 and older. Sixth, SB 1830 removes a residency requirement that a senior
disabled veteran must have been a Florida resident at the. time they entered the service to
qualify for certain property tax exemptions. Seventh, SB 1830 repeals the ability for
limited liability partnerships with a general partner that is a charitable 501(c)(3)
organization to qualify for the affordable housing property tax exemption. Finally, SB
1830 exempts from property taxesproperty used exclusively for educational purposes
when the entities that own the property and the educational facility are the same natural
persons.
Assessment of Renewable Energy Devices Upon Residential Property. Also during
the Florida Legislature's 2013 Regular Session, the Florida Legislature passed House
Bill 277 CIIB 277"), which provides that certain renewable energy devices are exempt
from being considered when calculating the assessed value of residential property. HB 277
only applies to devices installed on or after January 1, 2013. HB 277 took effect on July 1,
2013.
Reclassification of Agricultural Lands. Also during the Florida Legislature's 2013
Regular Session, the Florida Legislature passed House Bill 1193 ("HB.1193"), which
eliminated three ways in which the. Property Appraiser had authority to reclassify
agricultural land as non-agricultural. land. Additionally, HB 1193 relieves the value
Adjustment Board of the authority to review the Property Appraisers' classifications of land
upon its own motion. HB 1193 applies retroactively as of January 1, 2013:
Exemption and Assessment of Renewable Energy Devices. Upon all Real Property,
In the August 2016 primary election, the voters in the State, approved a constitutional
amendment exempting the assessed value of certain.renewable energy. devices from the ad
valorem tax on tangible personall property and prohibiting certain renewable energy devices
from being considered when calculating the assessed value of all real property; not just real
property used for residential purposes as provided for in HB 277 described above. This
constitutional amendment took effect on January 1, 2018 and expires on December 31,
2037.
Exemption for Disabled First Responders. In the.November 2016 General Election,
voters approved a constitutional amendment authorizing first responders who. are totally
and permanently disabled as a result of injuries sustained in the line of duty to receive ad
27
valorem tax relief on the homestead property. The amount of tax relief, to be defined by
general law, can equal the total amount or a portion of the ad valorem tax otherwise owed
on the homestead property. Florida defines first responders as law enforcement officers,
correctional officers, firefighters, emergency medical technicians and paramedics. This
amendment took effect on January 1, 2017.
Extending the Limitation on Assessed Values of Non -Homesteaded Real Property.
In the November 2018 General Election, voters approved a constitutional amendment
removing the scheduled January 1, 2022 repeal of the limitation prohibiting the increase in
the assessed value of non -homestead property to 10% per year. The limitation does not
apply to property taxes levied by school districts. This amendment took effect on January
1, 2019.
Exempting Assessed Value of a Renewable Energy Device. During the Florida
Legislature's 2017 Regular Session, the Florida Legislature passed SB 90 ("SB 90")
implementing Amendment 4, which was approved by the voters in August 2016. SB 90
exempts the assessed value of a renewable energy device from tangible personal property
tax and the installation of those devices from determining the assessed value of real
property, both residential and non-residential, for the purpose of ad valorem taxation.
SB 90 also revises the definition of "renewable energy source device" to include power
conditioning and storage devices, wiring, structural support and other components used as
integral parts of such systems. The changes made by SB 90 expire on December 31, 2037.
Historically, various legislative proposals and constitutional amendments relating
to ad valorem taxation have been introduced in each session of the State legislature. Many
of these proposals have provided for new or increased exemptions to ad valorem taxation
and limited increases in assessed valuation of certain types of property or otherwise
restricted the ability of local governments in the State to levy ad valorem taxes at current
levels. There can be no assurance that similar or additional legislative or other proposals
will not be introduced or enacted in the future that would have a material adverse effect
upon the collection of ad valorem taxes by the County, the County's finances in general or
the County's ad valorem taxing power.
CERTAIN INVESTMENT CONSIDERATIONS
The purchase of the Series 2024 Bonds involves a degree of risk, as is the case with
all investments. Factors that could affect the market price of the Series 2024 Bonds or the
County's ability to perform its obligations under the Bond Resolution, including the timely
payment of principal of and interest on the Series 2024 Bonds, include, but are not limited
to, the following:
1. There is no assurance that any rating assigned to the Series 2024 Bonds by
the rating agencies will continue for any given period of time or that it will not be lowered
or withdrawn entirely by such rating agency, if in its judgment, circumstances warrant. A
downgrade change in or withdrawal of any rating may have an adverse effect on the market
price of the Series 2024 Bonds.
2. In the event of a default in the payment of principal of and interest on the
Series 2024 Bonds, the remedies of the owners of the Series 2024 Bonds are limited under
the Bond Resolution and may be further limited under Florida law.
3. There can be no assurance that legislation or other proposals will not be
introduced or enacted in the future that would, or might apply to, or have a material adverse
effect upon, the levy or collection of Ad Valorem Taxes or the County's finances.
4. The State of Florida is naturally susceptible to the effects of extreme weather
events and natural disasters including floods, droughts, and hurricanes, which could result
in negative economic impacts on communities including the County. Such effects can be
exacerbated by a longer-term shift in the climate over several decades (commonly referred
to as climate change, generally discussed in paragraph 5 below), including increasing
global temperatures and rising sea levels. The occurrence of such extreme weather events
could damage local infrastructure that provides essential services to the County. The
economic impacts resulting from such extreme weather events could include a loss of
revenue, interruption of service, and escalated recovery costs.
5. Numerous scientific studies on climate change show that, among other
effects on the global ecosystem, sea levels may rise, extreme temperatures may become
more common, and extreme weather events may become more frequent as a result of
increasing global temperatures attributable to atmospheric pollution. Sea levels may
continue to rise in the future due to the increasing temperature of the oceans causing
thermal expansion and growing ocean volume from glaciers and ice caps melting into the
ocean. Coastal areas like the County are at risk of substantial flood damage over time,
affecting private development and public infrastructure, including roads, utilities,
emergency services, schools, and parks. If this were to happen, the County could lose
considerable tax revenues and many residents, businesses, and governmental operations
along the waterfront could be displaced, and the County could be required to mitigate these
effects at a potentially material cost. The County is unable to predict whether sea level rise
or other impacts of climate change will occur, when they may occur, and if any such events
occur, whether they will have a material adverse effect on the business operations or
financial condition of the County. Additionally, climate change concerns have led, and
may continue to lead, to new laws and regulations at the federal and state levels (including
but not limited to air, water, hazardous substances and solid waste regulations) that could
have a material adverse effect on the operations and/or financial condition of the County.
6. Computer networks and systems used for data transmission and collection
are vital to the efficient operations of the County. County systems provide support to
departmental operations and constituent services by collecting and storing sensitive data,
29
including intellectual property, security information, . proprietary business process
information, information applying to suppliers and business partners, and personally
identifiable information of customers, constituents and employees. The secure processing;
maintenance and transmission of this information is critical to department operations and
the provision of citizen services. Increasingly, governmental entities are being targeted by
cyberattacks (including; but not limited to, hacking, viruses, malware and other attacks on
computers and other sensitive digital networks and systems) seeking to obtain confidential
data or.disrupt critical services. A rapidly changing cyber risk landscape may introduce
new vulnerabilities and avenues that attackers/hackers. can exploit in attempts to cause
breaches or service disruptions. Employee error and/or malfeasance may also contribute
to data loss or other system disruptions. Additionally, the County's computer networks and
systems routinely interface and rely on third party systems that are also subject to the risks
previously described. Any such breach could compromise networks and the
confidentiality, integrity and availability of systems and the information stored there. The
potential disruptions, access, modification, disclosure or destruction of data could result in
interruption of the efficiency of County commerce, initiation of legal. claims or
proceedings, liability under laws that protect the privacy of personal . information,
regulatory penalties, disruptions in operations :and the services provided and. the loss of
confidence in County operations; ultimately adversely affecting County revenues.
The County's cyber security program is managed by cyber security professionals
within the Information Technology Department. This group's primary concern is
protecting electronic assets and sensitive data stored on and transmitted through the
County's networks and servers. This chiefly includes all financial data, employee records
and other sensitive personnel information and sensitive. customer data. Preventative
actions being taken by the County include diligent firewall monitoring, proactive security
evaluation of new software prior to launching them on the County's networks and servers;
institution and consistent application of PCI (Payment Card Industry) : security standards,
and annual cybersecurity training for County employees. Access. to County systems ends
upon termination of employment with the County, and County -owned electronic assets are
obtained from the terminated employee at that time. All external emails are: heavily
screened to ensure the County's cyber defenses are not penetrated, HIPAA (Health
Insurance Portability and Accountability Act) and PCI compliance are also areas of great
concern with respect to the County's cybersecurity efforts. Despite the: County's efforts in
this area, no assurance can be given that any cyberattacks, if successful, will .not have a
material adverse effect on the operations or financial condition of the County.
7. The outbreak of the highly contagious COVID-19 pandemic in the United
States in March 2020 generally had a disruptive financial impact on local, state. and national
economies around the country; including without limitation fueling inflation and creating
supply chain issues. COVID-19 was considered a Public Health, Emergency of
International Concern by the World Health Organization.. This led to quarantine and other
"social distancing" measures . throughout the United States. These measures included
30
recommendations and warnings to limit non-essential travel and promote telecommuting.
There can be no guarantee that State and%r.local shut downs or closures similar to those
implemented in 2020 will not happen in the future. It: is possible' the.United States,
including the State and the County, may. experience. increased COVID-.19 cases,
hospitalizations, and deaths as a result of °current, or future variants, or may experience a
new viral pandemic, which could, in turn, impact State and local government'finances.
i
Prospective purchasers of the Series: 2024 Bonds should review carefully -all of the
provisions of the Bond Resolution the form of which is included in Appendix C attached
to this Official Statement.
EMPLOYEE RETIREMENT PLANS AND OTHER POST EMPLOYMENT
BENEFITS
Employee Retirement Plans
General Information. All of the County's employees :participate in the. Florida
Retirement System (the "FRS"). As provided by Chapters 121 and 112,. Florida Statutes,
the .FRS provides two cost sharing multiple -employer defined benefit plains administered
by the Florida Department of Management. Services, Division of Retirement, including the
FRS Pension Plan (the "Pension,Plan.') and the Retiree Health Insurance Subsidy (the "HIS
Program"). Under Section 121.4501, Florida Statutes, the FRS also provides a defined
contribution plan (the "Investment Plan") alternative to the Pension Plan, which is
administered by the State Board of Administration . (the "SBA"). . As a general rule,
membership in the FRS is compulsory for all employees working in a. county, state
university, community college, or a participating -city or special district within the State of
Florida.. The FRS provides retirement and disability benefits, annual cost -of -living
adjustments, and death benefits to plan members and beneficiaries: Benefits are
established by Chapter 12.1, Florida .Statutes and. Chapter 60S, Florida Administrative
Code. Amendments to the law can be made only by an act of the Florida Legislature:
The State annually issues a publicly available financial report that includes financial
statements and required supplementary information for the FRS. The latest available report
may be obtained by writing to the State of Florida. Division of Retirement, Department of
Management Services, PO Box 9000, Tallahassee, Florida X2315-9004. That report may
also be viewed on the FRS's website located .at wwwAms:myflorlda:com/workforce
operations/retirement/publications.
Description of the Pension Plan.. The Pension Plan is a cost-sharing. multiple -
employer defined benefit pension plan with a Deferred Retirement Option Program
(''DROP") available for eligible employees.
Pension Plan Benefits. Benefits under the Pension Plan are computed on the basis
of age, average final -compensation, and service credit. For Pension Plan members enrolled
before July 1, 2011, regular class members who retire at or after age 62withat least six
years of credited service or 30 years of service regardless of age are entitled to a retirement
benefit payable monthly for life, equal to 1.6% of their final average compensation based
on the five highest years of salary for each year of credited service. Vested members with
less than 30 years of service may retire before age 62 and receive reduced retirement
benefits.
Special Risk class members (sworn law enforcement officers, firefighters, and
correctional officers) who retire at or after age 55 with at least six years of credited service,
or with 25 years of service regardless of age, are entitled to a retirement: benefit payable
monthly for life equal to 3.0% of their final average compensation based on the five highest
years of salary for each year of credited service.
Senior Management Service class members who retire at or after age 62 with at least
six years of credited service or 30 years of service regardless of age are entitled to a
retirement benefit payable monthly for life, equal: to 2.0% of their final. average
compensation based on the five highest years of salary for each year of credited service.
Elected Officers' class members who retire at or after age 62 with at least six years
of credited service,or 30 years of service. regardless of age. are entitled . to a retirement
benefit payable monthly for life, equal to 3.0% (3.33% for judges and justices) of their final
average compensation based on the five highest years of salary for each year of credited
service.
For Plan members enrolled on or after July 1, 2011, the vesting requirement is
extended to eight years of credited service for all these members and increasing normal
retirement to age 65 or 33 yearn of service _regardless of age for Regular, Senior
Management Service, and Elected Officers' class members, and to age 60 or 30 years of
service regardless of age for Special Risk- class members. Also, the final average
compensation for all these members:will be based on the eight -highest years of salary.
As provided in Section 121 101, Florida Statutes, if the member is initially enrolled 1
in the Pension Plan before July 1, 2011 and all service credit was accrued before July 1,
2011, the annual cost -of -living adjustment is 3% per year. If .the member 'is- initially
enrolled before July 1, 2011 and has service. credit on or .after July: 1, 2011, there is .an .
individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is.
determined by dividing the sum of the pre -July 2011, service credit by the total service
credit at retirement multiplied by 3%. Plan members initially enrolled on or after July 1,
.201.1, will not have a cost -of -living adjustment after, retirement.
In addition to the above benefits, the DROP program allows eligible members to
defer receipt of monthly retirement benefit payments while continuing employment. with a
32
FRS employer for a period not to exceed 96 months after electing to participate. Deferred
monthly benefits are held in the FRS Trust Fund and accrue interest. There are no required
contributions by DROP participants.
Pension Plan Contributions. The State of Florida establishes contribution rates for
participating employers and employees in section 121.71 Florida Statutes. Effective July
1, 2011, the FRS became a contributory plan for all members, except DROP participants,
whereby members contribute 3% and employers pay a rate based upon each member's
employment class. Classes and rates in effect at July 1, 2023 were: Regular Class 13.57%,
Special Risk 32.67%, Senior Management 34.52%, DROP 21.13%, and Elected Official
class 58.68%. Included in these rates is a health insurance subsidy of 2.00%. Employer
contributions to the FRS are based on a percentage of covered payroll that has been
actuarially determined as an amount, when combined with the 3% employee contributions,
is expected to finance the cost of benefits earned by employees during the year with an
additional amount to finance any unfunded accrued liability.
The County's actuarial contribution to FRS under the Pension Plan for the year
ended September 30, 2023, was $17,998,343. Employee contributions for September 30,
2023 were $2,914,267. Both employer and employee contributions were equal to 100% of
the required contribution.
Pension Liabilities, Pension Expense, and Deferred Ou flow of Resources and
Deferred Inflow of Resources Related to Pension Plan. At September 30, 2023, the
Division of Retirement calculated the County's liability of $142,901,121 for the FRS plan
for its proportionate share of the net pension liability. The net pension liability was
measured as of June 30, 2023, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of July 1, 2023. The County's
proportionate share of the net pension liability was based on a projection of the County's
long-term share of contributions to the Pension Plan relative to the projected contributions
of all participating employers, actuarially determined. At June 30, 2023, the County's
proportionate share was 0.3586% for the Pension Plan. This was a decrease of 0.0032%
from its proportionate share measured as of June 30, 2022.
The County anticipates that the pension liability will be liquidated in the following
manner: General Fund 58%, Emergency Services District Fund 29%, Enterprise Funds 7%,
and the remaining 6% is by the Other Governmental Funds and Internal Service Funds.
For the year ended September 30, 2023, the County's calculated total of actuarially
determined pension expense was $17,106,599. In addition, the County reported deferred
outflows of resources and deferred inflows of resources related to pensions from the
following sources:
33
Description
Differences between expected and actual experience
Changes in assumptions
Net difference between projected and actual earnings
on pension plan investments
Changes in proportion and differences between County
contributions and proportionate share of
contributions
County contributions subsequent to the measurement
date
Total
Deferred Deferred
Outflows of Inflows of
Resources Resources
$13,417,182 -
9,315,479 -
5,967,938 -
3,076,821 $2,515,494
5,025,841 -
$36,803,261 $2,515,494
The deferred outflows of resources related to the Pension Plan totaling $5,025,841
resulting from County contributions subsequent to the measurement date, will be
recognized as a reduction of the net pension liability in the year ended September 30, 2024.
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Fiscal Year Ending
September 30
2024
2025
2026
2027
2028
Total
Amount
Recognized
$3,988,027
(1,580,037)
23,929,986
2,273,149
650,801
$29,261,926
Actuarial Assumptions. The total pension liability in the July 1, 2023 actuarial
valuation was determined using the following actuarial assumption, applied to all periods
included in the measurement:
Valuation date:
Measurement date:
Discount rate:
Long-term expected rate of return
Inflation:
Salary increase:
Mortality:
Actuarial cost method:
July 1, 2023
June 30, 2023
6.70%
6.70%, net of pension plan investment
expense, including inflation
2.40%
3.25%, including inflation
PUB -2010 base table, projected
generationally with Scale MP -2018
Individual Entry Age
U!I
The actuarial assumptions that determined the total pension liability used in the July
1, 2023 valuation were based on the results of an actuarial experience study for the period
July 1, 2013 through June 30, 2018.
There were no changes in actuarial assumptions in 2023.
Long -Term, Expected Rate of Return: The long-term expected rate of return on
pension plan investments are not based on historical returns, but instead are based on a
forward-looking capital market economic model. The allocation policy's description of
each class was used to map the target allocation to the asset classes shown below. Each
asset class assumption is based upon a consistent set of underlying assumptions and
includes an adjustment for the inflation assumption. The target allocation and best
estimates of arithmetic and geometric real rates of return for each major asset class are
summarized in the following table:
Discount Rate for Pension Plan. The discount rate used to measure the total pension
liability was 6.70%. The projection of cash flows used to determine the discount rate
assumed that plan member contributions will be made at the current contribution rate and
that the County's contributions will be made at statutorily required rates, actuarially
determined. Based on those assumptions, the Pension Plans' fiduciary net position was
projected to be available to make all projected future benefit payments of current active
and inactive employees if future experience follows assumptions and the actuarially
determined contribution is contributed in full each year. Therefore, the discount rate for
calculation of the total pension liability is equal to the long-term expected rate of return.
Sensitivity of the County's Proportionate Share of the Net Position Liability to
Changes in the Discount Rate for the Pension Plan. The following presents the County's
proportionate share of the Net Pension Liability ("NPL") of the Pension Plan calculated
using the discount rate of 6.70%. Also presented is what the County's proportionate share
of the FRS plan NPL would be if it were calculated using a discount rate that is I% lower
or 1% higher than the current rate:
35
Compound
Annual
Annual
Target
Arithmetic
(Geometric)
Standard
Asset Class
Allocation
Return
Return
Deviation
Cash
1.0%
2.9%
2.9%
1.1%
Fixed Income
19.8
4.5
4.4
3.4
Global Equity
54.0
8.7
7.1
18.1
Real Estate (property)
10.3
7.6
6.6
14.8
Private Equity
11.1
11.9
8.8
26.3
Strategic Investments
3.8
6.3
6.1
7.7
Total
100.0%
Assumed inflation -mean
2.4%
1.4%
Discount Rate for Pension Plan. The discount rate used to measure the total pension
liability was 6.70%. The projection of cash flows used to determine the discount rate
assumed that plan member contributions will be made at the current contribution rate and
that the County's contributions will be made at statutorily required rates, actuarially
determined. Based on those assumptions, the Pension Plans' fiduciary net position was
projected to be available to make all projected future benefit payments of current active
and inactive employees if future experience follows assumptions and the actuarially
determined contribution is contributed in full each year. Therefore, the discount rate for
calculation of the total pension liability is equal to the long-term expected rate of return.
Sensitivity of the County's Proportionate Share of the Net Position Liability to
Changes in the Discount Rate for the Pension Plan. The following presents the County's
proportionate share of the Net Pension Liability ("NPL") of the Pension Plan calculated
using the discount rate of 6.70%. Also presented is what the County's proportionate share
of the FRS plan NPL would be if it were calculated using a discount rate that is I% lower
or 1% higher than the current rate:
35
1% Decrease
Current Discount
1% Increase
(5.70%)
Rate (6.70%)
(7.70%)
County's proportionate share of NPL $244,104,212
$142,901,121
$58,232,625
Pension Plan Fiduciary Net Position. Detailed information regarding the Pension
Plan's fiduciary net position is available in the separately issued FRS Pension Plan and
Other State -Administered Systems Annual Comprehensive Financial Report. This report
is available by writing to the State of Florida, Division of Retirement, Department of
Management Services, P.O. Box 9000, Tallahassee, Florida 32315-9000 or by email at
rep@dms.myflorida.com, or by telephone toll free at (877) 377-1737 or (850) 488-5706.
This report identifies statements that were prepared in accordance with generally accepted
accounting principles, the measurement focus and basis of accounting, various investment
valuations, various pension plan benefits, assumptions used, and many other details.
Description of the HIS Plan. The HIS Program is a cost-sharing, multiple -employer,
defined benefit pension plan established to provide a monthly subsidy payment to retired
members of any state -administered retirement system. It was established under Section
112.363, Florida Statutes. Benefits are not guaranteed and are subject to annual legislative
appropriation. In the event legislative appropriation or available funds fail to provide full
subsidy benefits to all participants, benefits may be reduced or canceled. The HIS Program
is administered by the Florida Department of Management Services, Division of
Retirement.
HIS Program Benefits. For Fiscal Year ended September 30, 2023, eligible retirees
and beneficiaries received a monthly HIS Program payment of $7.50 for each year of
creditable service completed. The payments are at least $45 but not more than $225 per
month. To be eligible to receive a HIS Program benefit, a retiree under a state -administered
retirement system must provide proof of health insurance coverage, which may include
Medicare.
HIS Program Contributions. The HIS Program is funded by required contributions
from FRS participating employers as set by the Florida Legislature. Employer
contributions are a percentage of gross compensation for all active FRS members. For the
Fiscal Year ended September 30, 2023, the HIS Program contribution rate was 2.00%.
There are no employee contributions required. The County contributed 100% of its
statutorily required contributions for the current and preceding three years. HIS Program
contributions are deposited in a separate trust fund from which payments are authorized.
The County's actuarial contributions to the HIS Program totaled $1,816,550 for the Fiscal
Year ended September 30, 2023.
Pension Liabilities, Pension Expense, and Deferred Outflow of Resources and
Deferred Inflow of Resources Related to HIS Program. At September 30, 2023, the
Division of Retirement calculated the County's liability of $41,350,877 for its
proportionate share of the HIS Program's net pension liability. The net pension liability
36
was measured as of June 30, 2023, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of July 1, 2022. At June 30,
2023, the County's proportionate share was 0.2604% for the HIS Program. This was a
decrease of 0.0090% from its proportionate share measured as of June 30, 2022.
For the year ended September 30, 2023, the County's recognized pension expense
was $14,742,846. In addition, the County reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Description
Differences between expected and actual experience
Changes in assumptions
Net difference between projected and actual earnings
on pension plan investments
Changes in proportion and differences between County
contributions and proportionate share of
contributions
County contributions subsequent to the measurement
date
Total
Deferred
Deferred
Outflows of
Inflows of
Resources
Resources
$605,350
1,087,102
21,354
1,895,230
529,728
$97,057
3,583,193
942,516
$4,138,764 $4,622,766
The deferred outflows of resources related to the HIS Program totaling $529,728
resulting from County contributions subsequent to the measurement date, will be
recognized as a reduction of the net pension liability in the year ended September 30, 2024.
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to HIS Program will be recognized in pension expense as follows:
Fiscal Year Ending
September 30
2024
2025
2026
2027
2028
Thereafter
Total
Amount
Recognized
$(177,126)
(107,391)
(178,677)
(350,463)
(185,644)
(14,429)
$(1,013,730)
[Remainder of page intentionally left blank]
37
Actuarial Assumptions. The total pension liability for the HIS Program in the July
1, 2022 actuarial valuation was determined using the following actuarial assumptions,
applied to all periods included in the measurement:
Valuation date:
Measurement date:
Discount rate:
Long-term expected rate of return:
Municipal bond rate:
Inflation:
Salary increase:
Mortality:
Actuarial cost method:
July 1, 2022
June 30, 2023
3.65%
N/A
3.65%
2.40%
3.25%, average, including inflation
PUB -2010 base table, projected
generationally with Scale MP -2018
Individual Entry Age
The actuarial assumptions that determined the total HIS Program pension liability
used in the July 1, 2022 valuation were based on the results of an actuarial experience study
for the period July 1, 2013 through June 30, 2018. The following changes in actuarial
assumptions occurred in 2023:
• The discount rate was modified to reflect the change in the value of the
municipal bond index between the Governmental Accounting Standards Board ("GASB")
measurement dates.
• Chapter 2023-193, Laws of Florida (Senate Bill 7024), increased the level of
monthly benefits from $5 times years of service to $7.50, with an increased minimum of
$45 and maximum of $225. This change applies to all years of service for both members
currently receiving benefits and members not yet receiving benefits.
Discount Rate for HIS Program. In general, the discount rate for calculating the
total pension liability is equal to the single rate equivalent to discounting at the long-term
expected rate of return for benefit payments prior to the projected depletion date. Because
the HIS Program is essentially funded on a pay-as-you-go basis, the depletion date is
considered to be immediate. The single equivalent discount rate is equal to the municipal
bond rate selected by the plan sponsor. The Bond Buyer General Obligation 20 -Bond
Municipal Bond Index was adopted as the applicable municipal bond index.
Long -Term Expected Rate of Return. As stated above, the HIS Program is
essentially funded on a pay-as-you-go basis. As such, there is no assumption for a long-
term expected rate of return on a portfolio, no assumptions for cash flows into and out of
the Pension Plan, or assumed asset allocation.
Sensitivity of the County's Proportionate Share of the Net Position Liability to
Changes in the Discount Rate for the HIS Program. The following presents the County's
proportionate share of the NPL of the HIS Program calculated using the discount rate of
3.65%. Also presented is what the County's proportionate share of the HIS Program NPL
would be if it were calculated using a discount rate that is 1 % lower or I% higher than the
current rate:
1% Decrease Current Discount 1% Increase
(2.65%) Rate (3.65%) (4.65%)
County's proportionate share of NPL $47,174,898 $41,350,877 $36,523,156
HIS Program Fiduciary Net Position: Detailed information regarding the HIS
Program's fiduciary net position is available in the separately issued Pension Plan and Other
State -Administered Systems Annual Comprehensive Financial Report. This report is
available by writing to the State of Florida, Division of Retirement, Department of
Management Services, P.O. Box 9000, Tallahassee, Florida 32315-9000 or by email at
rep@dms.myflorida.com, or by telephone toll free at (877) 377-1737 or (850) 488-5706.
Total Pension Liability - FRS Pension and HIS Program Combined. At September
30, 2023, the Division of Retirement calculated the County's total liability of $184,251,998
for its proportionate share of the net pension liability. The net pension liability was
measured as of June 30, 2023, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of July 1, 2023. At June 30,
2023, the County's total proportionate share was 0.6190%. This was a decrease of
0.0122% from its proportionate share measured as of June 30, 2022.
For the year ended September 30, 2023, the County recognized pension expense for
the FRS Pension and HIS Program combined of $31,849,445. The County reported
deferred outflows of resources and deferred inflows of resources related to the pension and
HIS program from the following sources:
The deferred outflows of resources totaling $5,555,569 resulting from County
contributions subsequent to the measurement date, will be recognized as a reduction of the
39
Deferred
Deferred
Outflows of
Inflows of
Description
Resources
Resources
Differences between expected and actual experience
$14,022,532
$97,057
Changes in assumptions
10,402,581
3,583,193
Net difference between projected and actual earnings
on pension plan investments
5,989,292
-
Changes in proportion and differences between County
contributions and proportionate share of
contributions
4,972,051
3,458,010
County contributions subsequent to the measurement
date
5,555,569
-
Total
$40,942,025
$7,138,260
The deferred outflows of resources totaling $5,555,569 resulting from County
contributions subsequent to the measurement date, will be recognized as a reduction of the
39
net pension liability in the year ended September 30; 2024. Other amounts reported as
deferred outflows of resources and deferred
inflows of resources will be. recognized in
pension expense as follows:
Fiscal Year.Ending
Amount
September 30
Recognized
2024
; $3,736;718
2025
(1,996,074}
- 2026
2499891359
2027
194059424
2028
154,667
Thereafter
(4108)
Total
$28,248,196
FRS Investment Plan
Description of the FRS Plan. The County contributes to the Investment Plan, a
defined contribution pension plan, for its eligible employees electing to participate in the
Investment Plan. The Investment Plan is administered by the SBA, and is reported in the
SBA's annual financial statements and in the State of Florida Annual Comprehensive
Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members
may elect to participate in the Investment Plan in lieu of the FRS defined benefit.plan;
County employees already participating in DROP' are not eligible to participate .in this
program.
FRS Program Benefits. Service retirement benefits are based upon the value of the
member's account upon retirement. Employers and employee contributions, including
amounts contributed to individual member's accounts, are defined by law, but the ultimate
benefit depends in part on the performance of investment funds. Benefit terms, including
contribution requirements, for the investment Plan are established and may be amended by
the Florida Legislature.
For all membership classes, employees are immediately vested in their own
contributions and are vested after one year of service for employer contributions and
investment earnings. No v vested:employer con
tributions are placed in a suspense: account
for up to five years. If the employee returns to FRS -covered employment within the five
year period, the employee will regain control over his/her. account. If the employee does
not return within the five-year period, the employee will forfeit the accumulated account
balance. For Fiscal Year ended..: September 30, 2023, the information for the amount of
forfeitures was unavailable from the SBA; however,. management believes that these
amounts, if any, would be immaterial to the. County.
If an accumulated benefit obligation for service credit originally earned under the
Pension Plan is transferred to the Investment Plan, the member must have the years of
.O
service required for Pension Plan vesting (including the service credit represented by the
transferred funds) to be vested for these funds and the earnings on the funds.
After termination and applying to receive benefits, the member may rollover vested
funds to another qualified plan, structure a periodic payment under the Investment Plan,
receive a lump -sum distribution, leave the funds invested for future distribution, or any
combination of these options. Disability coverage is provided; the member may either
transfer the account balance to the Pension Plan when approved for disability retirement to
receive guaranteed lifetime monthly benefits under the Pension Plan, or remain in the
Investment Plan and rely upon that account balance for retirement income.
FRS Program Contributions. Cost of administering the Investment Plan, including
the FRS Financial Guidance Program, are funded through an employer contribution of
.06% of payroll and by forfeited benefits of Investment Plan members. The Investment
Plan is funded with the same employer and employee contribution rates that are based on
salary and membership class as the FRS defined benefit plan. Contributions are directed to
individual member accounts, and the individual members allocate contributions and
account balances to various approved investment choices.
Allocations to the investment member's accounts during the 2022-2023 Fiscal Year
are based on a percentage of gross compensation by class as follows: Regular class 11.30%,
Special Risk class 19.00%, Senior Management Service class 12.67%, and County Elected
Officers' class 16.34%. This includes the employee contribution of 3%.
The County's Investment Plan contributions and pension expense totaled
$3,657,361 for Fiscal Year ended September 30, 2023. Employee contributions totaled
$614,031 for the same period.
Other Retirement Plans
The Board established an Internal Revenue Code Section 401(a) defined
contribution plan on June 6, 2023 to provide benefits at retirement to employees who have
been designated by the FRS as not eligible for renewed membership and are ineligible to
participate in the FRS Pension or Investment Plan. Senior Management Service Class
employees who hold an eligible position and have completed the necessary form to
withdraw from the FRS will also be enrolled in this plan.
The plan is a single -employer defined contribution plan administered by Lincoln
Financial. In a defined contribution plan, benefits depend solely on amounts contributed
to the plan plus investment earnings. This plan is non-contributory for members. The
County does not hold or administer resources of the plan. Consequently, the Lincoln plan
does not meet the requirements for inclusion in the County's financial statements as a
fiduciary fund. The plan does not issue a stand-alone financial report. Plan provisions are
established and may be amended only by the Board.
41
For eligible employees enrolled in the Lincoln defined contribution plan, the Board
shall establish an employer contribution rate equal to the difference between the eligible
employee FRS contribution rate for the FRS Investment Plan and the ineligible employee
FRS contribution rate for the FRS Investment Plan as determined by the FRS annually.
As of September 30, 2023, the contribution rate for eligible employees was 6.79%,
calculated as the difference between the regular class employer rate of 13.57%, and the
regular class rehire rate of 6.78%. Employer contributions totaled $3,630 for Fiscal Year
2023.
Other Post -Employment Benefit Plans
Other Post -Employment Benefit ("OPEB') Plan Description. On September 23,
2008, the Board approved resolution number 2008-163, establishing an irrevocable trust
("OPEB Trust") to separately identify assets accumulated to pay OPEB benefits for eligible
retirees. The OPEB Trust includes the Board and the five constitutional officers (Clerk of
the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of Elections,
and Tax Collector). The resolution also established the Board as trustees of the OPEB Trust
and the authority for the trustees to amend the benefit provisions.
The OPEB Trust is a single -employer defined benefit plan ("OPEB Plan"). The
OPEB Plan subsidizes the cost of health care for employees hired prior to February 1, 2006
and their eligible dependents according to the provisions of the substantive plan (the plan
as understood by the employer and plan members). Employees hired on or after February
1, 2006, will not be eligible for any subsidy, regardless of the years of service or Medicare
eligibility.
Active participants as well as retirees are subject to the same benefits and rules.
Retired employees are permitted to remain covered under the County's medical and life
insurance plans as long as they pay a premium applicable to the coverage elected. This
conforms to the minimum required of Florida governmental employers per Florida Statute
112.0801. The retiree has the option to continue with the County group health plan or elect
a Medicare Advantage Plan.
The implicit rate subsidy applies to health and life insurance coverage since the
premiums charged are based upon a blending of younger active employees and older retired
employees. Health insurance monthly premiums, effective October 1, 2022, range from
$257 for single coverage Medicare participants to $1,297.50 for family coverage. Life
insurance is available to retirees at a flat rate of $.75 per $1,000 of coverage (to a maximum
of $20,000 until the age of 70). After 70, the maximum amount of life insurance is $10,000.
The County subsidizes the cost of the health insurance premiums for each retiree
based upon their years of service and employment date (as mentioned above); a 2%
discount is given for each year of service based upon the following table:
42
Hired Before
2/1/2006
Retiree or Spouse
Medicare
Hired On or
Retirement Date
Service
Under Age 65
Eligible***
After 2/1/2006
Less than 15
No Subsidy
20% Subsidy*
ears
Before
2% per Year of
Additional 20%
1/31/2009**
At least 15
Service
Subsidy
years
(maximum of
(maximum of 60%)*
40%
No Subsidy
Less than 15
No Subsidy
No Subsidy
ears
On and After
2% per Year of
1/31/2009**
At least 15
Service
Subsidy Ceases
years
(maximum of
40%
*Additional Subsidy will be paid to Medicare Eligible retirees regardless of which plan they are enrolled in (County's
medical plan or Medicare Advantage Plan) and regardless of whether they become Medicare Eligible before or after
October 1, 2004.
**Employees who commit by June 1, 2008 to retire before January 31, 2009 will receive subsidy as if retired before
June 1, 2008.
***Effective May 1, 2016 and prospectively, subsidy does not cease until both Retiree and Spouse are Medicare eligible.
The OPEB Trust financial statements are reported using the accrual basis of
accounting and are included in the Indian River County Annual Comprehensive Financial
Report. Questions regarding the OPEB Plan may be directed to the Chief Deputy
Comptroller.
At October 1, 2021, the date of the latest actuarial valuation, plan participation
consisted of:
Active participants 1,565
Retired participants 543
2,108
There are two classes of participants at October 1, 2021:
Regular and senior management 1,357
Special risk 751
2,108
The average employer's contribution was $628 per employee, approximately 0.93%
of current payroll. Financial statements for the OPEB Trust are included in Annual
Comprehensive Financial Report for the Fiscal Year ended September 30, 2023 and can be
found on pages 46-47. A separate, stand-alone financial report is not issued by the County.
43
II
The OPEB Trust investments can be. found in Note 3D of.the Annual Comprehensive
Financial Report for the Fiscal Year ended September 30, 2023.
Contributions and Funding Policy. The Board, in concert with the OPER Board of
Trustees, has the authority to establish and amend the funding .policy of the OPEB Plan,
The OPEB Trust is advance funded by the County. For the year ended September 30, 2023,
the County contributed $1.0 million to the qualifying OPEB Trust. Plan members received
benefits totaling $3.2 million. The County anticipates that the. OPEB liability will be
liquidated in the following manner; General Fund 53%, Emergency Services District Fund
29%, Enterprise Funds 8%, Internal Service Funds 1%, and the remaining 9% is by the
Other Governmental Funds. It is the County's Policy to base: future contributions on: the
annual required contribution in subsequent annual actuarial reports. Custodial and
individual fund administrative fees are paid from the portfolio dividend and interest
income. ,
Net OPEB Liability. The County's Net OPEB liability was measured as of
September 30, 2023, and the total OPEB liability used o calculate the: net OPEB liability +
was determined by an actuarial valuation as of October 1 2021. Roll -forward reports were
completed at Fiscal Year end. The components of the net OPEB liability .of the. County at
September 30, 2023, were as follows:
Total OPEB liability $35,132,573
Plan fiduciary net position (29,$00,707)
County's net OPEB liability $5,331,$66
Plan fiduciary net position as a percentage of the total
OPEB liability 84.82%
Actuariat Methods and Assumptions. The total OPEB liability was determined by
an actuarial valuation as of October 1, 2021, using the following actuarial assumptions,
applied to all periods included in the measurement, unless.otherwise specified:
Methods and Assumptions Used to Determine Net OPEB Liability
Actuarial Cost Method Entry age normal
Inflation 2.25% o
Discount Rate 6.00% o
Salary Increases 3.40/6 to 7.8%, including inflation, varies by plan type
and years of service..
Retirement Age Experience -based. table of rates that are. specific to the
plan and type of eligibility condition.
Mortality Mortality tables used in the July 1, 202a `actuarial
valuation of the FRS. They are based on the results of
a statewide experience study covering me period 2013
through:2018.
Healthcare Cost Trend Rates Based on the Getzen Model, with trend starting at 6.0%
and gradually decreasing to an ultimate trend rate of
3.75%.
Aging Factors Based on the 2013 SOA Study "Health Care Costs -
From Birth to Death."
Expenses Investment expenses. are net of the investment returns;
Administrative expenses are included in the per capita
health costs.
Other Information
Notes Effective July It 2023, per. Senate Bill 7024, the
retirement eligibility for Special Risk members hired
on or after July 1, 2011 was lowered to the earlier of -
(I) age 55 with six .years of creditable service, or (2) .
25 years of creditable service regardless of --age.. In
addition, the maximum DROP participation period
was extended from 5 to eight years for all eligible for
DROP.
45
Discount Rate. Calculation of the Single Discount Rate. GASB Statement No. 74
includes a specific requirement for the discount rate that is used for the purpose of the
measurement of the Total OPEB Liability. This rate considers the ability of the fund to
meet benefit obligations in the future. To make this determination, employer contributions,
employee contributions, benefit payments, expenses and investment returns are projected
into the future. The Plan Net Position (assets) in future years can then be determined and
compared to its obligation to make benefit payments in those years. As long as assets are
projected to be on hand in a future year, the assumed valuation discount rate is used. In
years where assets are not projected to be sufficient to meet benefit payments, the use of a
municipal bond rate is required, as described in the following paragraph.
The Single Discount Rate ("SDR") is equivalent to applying these two rates to the
benefits that are projected to be paid during the different time periods. The SDR reflects
(1) the long-term expected rate of return on OPEB Plan investments (during the period in
which the fiduciary net position is projected to be sufficient to pay benefits) and (2) tax-
exempt municipal bond rate based on an index of 20 -year general obligation bonds with an
average AA credit rating as of the measurement date (to the extent that the contributions
for use with the long-term expected rate of return are not met).
For the purpose of this valuation the expected rate of return on OPEB Plan
investments is 6.00%, the municipal bond rate is 4.63%; and the resulting SDR is 6.00%.
The County has adopted a broadly diversified investment portfolio composition consisting
of equity, debt, and cash. Asset allocations are divided between short-term and long-term
investments. Short-term asset allocations include cash and investments with maturities of
180 days or less. Long-term asset allocations range from 0-60% for equities, 0-60% for
fixed income securities, and 0-100% for cash.
The County has a policy and a track record of depositing the full amount of the
Actuarially Determined Contribution developed under the Entry Age Method.
Consequently, the plan's fiduciary net position is projected to be sufficient to pay benefits
and the resulting SDR is 6.00%.
Sensitivity of Net OPEB Liability. Regarding the sensitivity of the net OPEB
liability to changes in the SDR, the following presents the plan's net OPEB liability,
calculated using a SDR of 6.00%, as well as what the plan's net OPEB liability would be
if it were calculated using a SDR that is I% lower or I% higher:
.R
I% Decrease
(5.00%)
$7,797,518
Sensitivity of Net OPEB Liability
to the Single Discount Rate Assumption
Current Single Discount 1% Increase
Rate Assumption (6.00%) (7.00%)
$5,331,866 $3,092,597
Regarding the sensitivity of the net OPEB liability to changes in the healthcare cost
trend rates, the following presents the plan's net OPEB liability, calculated using the
assumed trend rates as well as what the plan's net OPEB liability would be if it were
calculated using a trend rate that is I% lower or I% higher:
Sensitivity of Net OPEB Liability
to the Healthcare Cost Trend Rate Assumption
Current Healthcare Costs
I% Decrease Trend Rate Assumption 1% Increase
(5.0% down to 2.75%) (6.0% down to 3.75%) (7.0% down to 4.75%)
$2,275,609 $5,331,866 $8,867,365
Changes in the Net OPEB Liability.
Balances at 9/30/2022
Changes for the year:
Service cost
Interest
Changes to benefit terms
Contributions — employer
Net investment income
Benefit Payment
Net changes
Balances at 9/30/2023
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability(a) Net Position(b) Liability (a) -(b)
$ 34,934,061 $ 28,937,442 $ 5,996,619
580,560
-
2,035,476
-
762,507
-
-
1,005,398
-
3,037,898
(3,180,031)
(3,180,031
198,512
863,265
$ 35,132,573
$ 29,800,707
580,560
2,035,476
762,507
(1,005,398)
(3,037,898)
(664,753)
$ 5,331,866
OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPER.
For the year ended September 30, 2023, the County recognized OPEB expense of
$1,480,807. At September 30, 2023, the County reported deferred outflows of resources
and deferred inflows of resources related to OPEB from the following sources:
47
Description
Differences between expected and actual experience
Changes in assumptions
Net difference between projected and actual earnings on
OPEB Plan investments
Deferred
Outflows of
Resources
$2,585,971
1,106,480
1,687,203
Deferred
Inflows of
Resources
$5,131,624
$5,379,654 $5,131,624
Amounts reported as deferred outflows of resources and deferred inflows of
resources related to OPEB will be recognized in OPEB expense as follows:
Fiscal Year Ending
September 30
2024
2025
2026
2027
2028
Thereafter
Total
Net Deferred
Outflows of
Resources
$(371,216)
(231,383)
243,426
(26,252)
247,126
386,329
$248,030
LITIGATION
There is no litigation pending or, to the knowledge of the County, threatened, which
restrains or enjoins the issuance or delivery of the Series 2024 Bonds or questions or affects
the validity of the Series 2024 Bonds or the proceedings and authority under which they
are to be issued, or the authority of the County to annually levy ad valorem taxes to pay
debt service on the Series 2024 Bonds in accordance with the Bond Resolution. Neither
the creation, organization or existence of the County, nor the title of the present members
of the County or other officers of the County in their respective offices is being contested.
There is no litigation pending or, to the knowledge of the County, threatened, which, if it
were decided against the County, would have a materially adverse impact upon the
financial position of the County or its ability to perform its obligations to the Series 2024
Bondholders.
The County experiences routine litigation and claims incidental to the conduct of its
affairs. In the opinion of the County Attorney, there are no other actions presently pending
or threatened, the adverse outcome of which would have a material adverse effect on the
County's ability to pay debt service on the Series 2024 Bonds.
The County is party to other various legal proceedings which individually are not
expected to have a material adverse effect on its operations or financial condition, but may,
in the aggregate, have a material impact thereon. However, in the opinion of the County
Attorney, the County will either successfully defend such actions or otherwise resolve such
matters without any material adverse consequences.
LEGAL MATTERS
Certain legal matters in connection with the authorization, issuance and sale of the
Series 2024 Bonds are subject to the approval of Nabors, Giblin & Nickerson, P.A., Tampa,
Florida, Bond Counsel, whose approving opinion will be available at the time of delivery
of the Series 2024 Bonds. Nabors, Giblin, & Nickerson, P.A., Tampa, Florida, is also
serving as Disclosure Counsel to the County. Certain legal matters will be passed upon for
the County by William K. DeBraal, Esq., County Attorney.
The proposed form of the Bond Counsel opinion is attached hereto as Appendix D,
and reference is made to such form of opinion for the complete text thereof. The actual
legal opinion to be delivered may vary from that text if necessary to reflect facts and law
on the date of delivery. The opinion will speak only as of its date, and subsequent
distribution of it by recirculation of the Official Statement or otherwise shall create no
implication that Bond Counsel has reviewed or expresses any opinion concerning any of
the matters referenced in the opinion subsequent to its date.
Bond Counsel has not been engaged to, nor has it undertaken to, review (1) the
accuracy, completeness or sufficiency of this Official Statement or any other offering
material relating to the Series 2024 Bonds; provided, however, that Bond Counsel will
render an opinion to the Underwriter and the County relating to the accuracy of certain
statements contained herein under the heading "TAX MATTERS" and certain statements
which summarize provisions of the Bond Resolution and the Series 2024 Bonds, and (2)
the compliance with any federal or state law with regard to the sale or distribution of the
Series 2024 Bonds.
ENFORCEABILITY OF REMEDIES
The remedies available to the owners of the Series 2024 Bonds upon a monetary or
covenant default under the Bond Resolution are in many respects based upon judicial
actions which are often subject to discretion, delay and equitable considerations. Under
existing constitutional and statutory law and judicial decisions, the remedies specified by
the Federal bankruptcy code, the Bond Resolution and the Series 2024 Bonds may not be
readily available or may be limited. The various legal opinions to be delivered concurrently
with the delivery of the Series 2024 Bonds (including Bond Counsel's approving opinion)
will be qualified as to the enforceability of the various legal instruments, by limitations
Hill
imposed by general principles of equity, bankruptcy, reorganization, insolvency or other
similar laws affecting the rights of creditors enacted before or after such delivery.
FINANCIAL ADVISOR
Hilltop Securities Inc., Orlando, Florida served as financial advisor (the ."Financial
Advisor") to the County with respect to the issuance of the Series 2424. Bonds; The
Financial Advisor has assisted the County in the preparation of this Official Statement and
has advised the County as to other matters relating to the planning, structuring and issuance
of the Series 2024 Bonds. The Financial Advisor is not obligated touundertake and has not
undertaken to make an independent. verification or to assume responsibility. for the
accuracy, completeness or fairness of the information contained. in this Official Statement.
The fee payable to the Financial Advisor is contingent upon the issuance and delivery of
the Series 2024 Bonds.
TAX MATTERS
Opinion of Bond Counsel
In the opinion of Bond Counsel, the form of which, is included as APPENDIX D
attached hereto, the interest on the Series 2024. Bonds is excludable from gross income of
the owners thereof for federal income tax purposes and is not a specific item of tax
preference for federal income tax pd6oses under existing statutes,. regulations, rulings and
court decisions; provided, however, with respect to certain corporations,, interest on the
Series 2024 Bonds is taken into account .in determining the annual adjusted financial
statement income for the purpose of computing the alternative minimum -tax imposed on
such corporations. Failure by the County to comply subsequently to the issuance of the
Series 2024 Bonds with certain requirements of the Internal Revenue Code of 1986, as
amended (the "Code"), including but not limited. to requirements regarding the use,
expenditure and investment of Series 2024 Bond proceeds and the time payment of
certain investment earnings to the Treasury of the United States, may cause interest: on the
Series 2024 Bonds to become includable in gross income for federal income tax purposes
retroactive to their date of issuance. The County has covenanted in the Bond Resolution to
comply with all provisions of the Code necessary to, among. other things., maintain the
exclusion from gross income of interest on the Series 2024 Bonds for -purposes of federal
income taxation.. In rendering its opinion, Bond Counsel has assumed continuing
compliance with such covenants.
Internal Revenue Code of 1986
The Code contains a number of provisions that apply to the Series 2024 Bonds,
including, among other things, restrictions relating to the use or.investment of the proceeds
of the Series 2024 Bonds and the payment of certain arbitrage earnings in excess of the
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"yield" on the Series 2024 Bonds to the Treasury of the United States. Noncompliance with
such provisions may result in interest on the Series 2024 Bonds being included in gross
income for federal income tax purposes retroactive to their date of issuance.
Collateral Tax Consequences
Except as described above, Bond Counsel will express. no opinion regarding the
federal income tax consequences resulting from the ownership of, receipt or accrual of
interest on, or disposition of, the Series 2024 Bonds. Prospective purchasers of the Series
2024 Bonds should be aware that the ownership of the Series 2024 Bonds may result in
other collateral federal tax consequences. For. example, ownership of the Series 2024
Bonds may result in collateral tax consequences to various types. of corporations relating
to (1) denial of interest deduction to purchase or carry such Series 2024 Bonds, (2) the .
branch profits tax, and (3) the inclusion of interest on the Series 2.024 Bonds in passive
income for certain Subchapter S corporations. In addition, the interest'on the Series 2024
Bonds may be included in gross income by recipients , of certain Social Security and
Railroad Retirement benefits.
PURCHASE, OWNERSHIP, SALE OR DISPOSITION OF 'THE SERIES 2024
BONDS AND THE RECEIPT OR ACCRUAL. OF THE INTEREST THEREON MAY,
HAVE ADVERSE FEDERAL TAX CONSEQUENCES FOR CERTAIN INDIVIDUAL
AND CORPORATE BONDHOLDERS, INCLUDING, BUT NOT LIMITED TO, THE
CONSEQUENCES DESCRIBED ABOVE.. PROSPECTIVE SERIES 2024
BONDHOLDERS SHOULD CONSULT WITH THEIR TAXSPECIALISTS FOR
INFORMATION IN THAT REGARD.
Other Tax Matters
Interest on the Series' 2024 Bonds may be subject to state or local income taxation
under applicable state or local laws in other jurisdictions.. Purchasers of the Series 2024
Bonds should consult their own tax advisors as to the income tax status 'of interest on the
Series 2024 Bonds in their particular state or local jurisdictions.
The Inflation Reduction Act, H.R.. 5376 the ERA), was passed both houses of
( ) p �'
the U.S. Congress and was signed by the President on August 16,, 2022. -As enacted, the
IRA includes a 15 percent alternative minimum tax to be imposed on the "adjusted financial
statement income," as defined in the IRA, of certain corporations for: tax. years beginning
after December 31, 2022. Interest on the Series 2024 Bonds will be included in. the
"adjusted financial statement income of such corporations for purposes. of computing the
corporate alternative minimum tax. Prospective purchasers that could be subject to this
minimum tax should consult with their own tax advisors regarding the potential tax
consequences of owning the Series 2024 Bonds.
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During prior years, legislative proposals have been introduced in Congress, and in
some cases enacted, that altered certain federal tax consequences resulting from the
ownership of obligations that are similar to the Series 2024 Bonds. In some cases, these
proposals have contained provisions that altered these consequences on a retroactive basis.
Such alteration of federal tax consequences may have affected the market value of
obligations similar to the Series 2024 Bonds. From time to time, legislative proposals are
pending which could have an effect on both the federal tax consequences resulting from
ownership of the Series 2024 Bonds and their market value. No assurance can be given that
additional legislative proposals will not be introduced or enacted that would or might apply
to, or have an adverse effect upon, the Series 2024 Bonds.
Tax Treatment of Original Issue Discount
Certain of the Series 2024 Bonds (the "Discount Bonds") may be offered and sold
to the public at an original issue discount, which is the excess of the principal amount of
the Discount Bonds over the initial offering price to the public, excluding bond houses,
brokers or similar persons or organizations acting in the capacity of underwriters or
wholesalers, at which initial offering price a substantial amount of the Discount Bonds of
the same maturity was sold. Original issue discount represents interest which is excluded
from gross income for federal income tax purposes to the same extent as interest on the
Discount Bonds. Original issue discount will accrue over the term of a Discount Bond at
a constant interest rate compounded semi-annually. An initial purchaser who acquires a
Discount Bond at the initial offering price thereof to the public will be treated as receiving
an amount of interest excludable from gross income for federal income tax purposes equal
to the original issue discount accruing during the period such purchaser holds such
Discount Bonds and will increase the adjusted basis in such Discount Bonds by the amount
of such accruing discount for purposes of determining taxable gain or loss on the sale or
other disposition of such Discount Bonds. The federal income tax consequences of the
purchase, ownership and prepayment, sale or other disposition of Discount Bonds which
are not purchased in the initial offering at the initial offering price may be determined
according to rules which differ from those above. Owners of Discount Bonds should
consult their own tax advisors with respect to the precise determination for federal income
tax purposes of interest accrued upon sale, prepayment or other disposition of such
Discount Bonds and with respect to the state and local tax consequences of owning and
disposing of such Discount Bonds.
Tax Treatment of Bond Premium
Certain of the Series 2024 Bonds (the "Premium Bonds") may be offered and sold
to the public at an initial offering price in excess of the principal amount of such Premium
Bond, which excess constitutes to an initial purchaser amortizable bond premium which is
not deductible from gross income for Federal income tax purposes. The amount of
amortizable bond premium for a taxable year is determined actuarially on a constant
interest rate basis over the term of the Premium Bonds which term ends on the earlier of
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the maturity or call date for each Premium Bond which minimizes the yield on said
Premium Bonds to the purchaser. For purposes of determining gain or loss on the sale or
other disposition of a Premium Bond, an initial purchaser who acquires such obligation in
the initial offering to the public at the initial offering price is required to decrease such
purchaser's adjusted basis in such Premium Bond annually by the amount of amortizable
bond premium for the taxable year. The amortization of bond premium may be taken into
account as a reduction in the amount of tax-exempt income for purposes of determining
various other tax consequences of owning such Premium Bonds. The federal income tax
consequences of the purchase, ownership and sale or other disposition of Premium Bonds
which are not purchased in the initial offering at the initial offering price may be
determined according to rules which differ from those described above. Owners of the
Premium Bonds are advised that they should consult with their own tax advisors with
respect to the state and local tax consequences of owning such Premium Bonds.
DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS
Pursuant to Section 517.051, Florida Statutes, as amended, no person may directly
or indirectly offer or sell securities of the County except by an offering circular containing
full and fair disclosure of all defaults as to principal or interest on its obligations since
December 31, 1975, as provided by rule of the Florida Department of Banking and Finance
(the "Department"). Pursuant to the Florida Administrative Code, the Department has
required the disclosure of the amounts and types of defaults, any legal proceedings
resulting from such defaults, whether a trustee or receiver has been appointed over the
assets of the County, and certain additional financial information, unless the County
believes in good faith that such information would not be considered material by a
reasonable investor. The County is not and has not been in default on any bond issued
since December 31, 1975 which it believes would be considered material by a reasonable
investor of the Series 2024 Bonds.
Although the County is not aware of any other defaults with respect to bonds or
other debt obligations as to which it has served only as a conduit issuer, it has not
undertaken an independent review or investigation of such bonds or other debt obligations
for which it served only as a conduit issuer. To the extent any of such bonds or other debt
obligations are in default as to principal and/or interest or otherwise, the obligation of the
County thereunder is limited solely to payment from funds received by the party on whose
behalf such bonds or other debt obligations were issued, and the County is not obligated to
pay the principal of or interest on such bonds or other debt obligations from any funds of
the County. The County in good faith believes the disclosure of such defaults or
investigations would not be considered material by a reasonable investor in the Series 2024
Bonds.
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S&P Global Ratings ("S&P") has assigned a municipal bond rating of "
outlook) to the Series 2024 Bonds. Such rating reflects the view of S&P and an explanation
of the significance of such rating may be obtained only from S&P at the following addresses
S&P Global Ratings, 55 Water Street, New York; New York 10041. 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 that such rating
will continue for any given period of time or that such rating will not be revised downward
or withdrawn entirely by S&P, if, in the judgment of S&P, circumstances so warrant. Any
such downward revision or withdrawal of such rating may have an adverse effect upon the
market price of the Series 2024 Bonds.
UNDERWRITING
The Series 2024 Bonds are being purchased by .(the "Underwriter"), at
a purchase price of $ (par amount of the Series 2024 Bonds, less an
underwriter's discount of $ and . [plus/less] [net] original issue
[premium/discount] of $.- See. "ESTIMATED SOURCES AND USES OF
FUNDS" herein. The offer of the Underwriter to purchase the Series 2024 Bonds, as
accepted by the County, provides for the Underwriter to purchase all of the Series 2024
Bonds. The Series 2024 Bonds may be offered and sold to certain dealers and.others at
prices lower than such offering prices and such public offering prices may be changed,
from time to time, by the Underwriter.
CONTINUING DISCLOSURE
The County has covenanted for the benefit of the Series 2024 Bondholders to
provide certain financial information and operating data relating to the County and the
Series 2024 Bonds in each year and to provide notices of the occurrence .of certain
enumerated material events. Such .covenant shall. only apply so long as the Series 2024
Bonds remain outstanding under the Bond Resolution. The covenant shall'also cease upon
the termination of the continuing disclosure requirements of S.E.C. Rule 15c2 -12(b)(5)
(the "Rule") by legislative, judicial or administrative action. The County has agreed to file
annual financial information and operating data and its audited financial statements
(collectively, the "Annual Report") with the Municipal Services. Rulemaking Board (the
"MSRB") through its Electronic Municipal Market. Access system ("EMMA" ), as
described in "Appendix E Form of Continuing Disclosure Certificate." The County has
agreed to file notices of certain enumerated material events, when and if they occur, with
the MSRB through EMMA. The County has engaged HTS Continuing Disclosure
Services, a Division of Hilltop Securities Inc., as its dissemination agent.
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The specific nature of the financial infformation, operating data, and of the type of
events which trigger a disclosure obligation, and other details of the undertaking are
described in "Appendix E Form of Continuing Disclosure Certificate" attached hereto.
The Continuing Disclosure Certificate shall.be.executed by the. County prior to the issuance
of the Series 2024 Bonds. These covenants have been made in order to assist the
underwriters for the Series 2024 Bonds in complying with the continuing; disclosure
requirements of the Rule. With respect to the Series 2024 Bonds, no party other than the
County is obligated to provide, nor is expected. to provide, any continuing disclosure
information with respect to the aforementioned Rule. Such annual financial reports are
now properly linked to the appropriate CUSIPs.
FINANCIAL STATEMENTS
The financial statements. of the County as of and for the Fiscal . Year ended
September 30, 2023, included in the County's Annual Comprehensive Financial Report
(Fiscal Year Ended September 30, 2023) attached to this Official Statement as Appendix B,
have been audited by Rehmann Robson, LLC, independent auditors, as stated in their report
dated March 8, 2024, included in Appendix B.. The Annual Comprehensive Financial
Report, including such financial statements and auditor's report, has been included in this
Official Statement as a public document, and the consent of the. County's auditors: was not
requested. The auditors have not performed any services related to and therefore are not
associated with, the preparation of the Official Statement.
INVESTMENT POLICY OF THE COUNTY
Pursuant to the requirements of Section 218.415, Florida Statutes, as amended, the
County adopted a written investment policy applicable to all cash and surplus funds of the
County except debt proceeds and monetary assets held by other entities.. on behalf of the
County. The objectives of the investment policy, listed in order of importance, are: (1) to
preserve capital in the overall portfolio and to maintain the safety of principal; (2) to remain
sufficiently liquid to meet disbursement requirements that might be reasonably anticipated;
and (3) to manage the investment portfolio to provide a competitive return consistent with
the objectives in items 1 and 2 and other risk limitations described in the investment policy.
The investment policy notes that the highest priority of all investment activitim shall be
the safety of principal and liquidity of funds. The. optimization of investment returns shall
be secondary to the requirements for safety and liquidity.
The. investment policy limits the securities eligible for inclusion in the County's
investment portfolio. Derivatives, reverse repurchase agreements or similar forms of
leverage are prohibited. Cryptocurrency purchases are also specifically prohibited. The
investment policy provides that County investments shall be managed to maintain. liquidity
for meeting the County's need for cash and to limit potential market risks. All investments
55
must have stated maturities of 10 years or less and no more than 25% of the portfolio shall
be invested in instruments with stated final maturities greater than five years. The portfolio
shall have securities with varying maturities and at least 10% of the portfolio shall be
invested in readily available funds.
The Clerk is responsible for conducting investment transactions for the County. The
investment policy also requires the establishment of an Investment Advisory Committee
which is tasked with evaluating the investment performance and the current and future
liquidity needs and investment strategies. It is also responsible for preparing periodic
reports for the Board. The Clerk is required to establish a system of investment internal
controls and operational procedures.
Subject to the requirements of Section 218.415, Florida Statutes, as amended, the
investment policy may be modified by the Board. The most recent investment policy of
the County became effective as of January 9, 2024.
CONTINGENT FEES
The County has retained Bond Counsel, Disclosure Counsel and the Financial
Advisor with respect to the authorization, sale, execution and delivery of the Series 2024
Bonds. Payment of the fees of Bond Counsel, Disclosure Counsel and the Financial
Advisor and an underwriting discount to the Underwriter are each contingent upon the
issuance of the Series 2024 Bonds.
MISCELLANEOUS
All information included herein has been provided by the County, except where
attributed to other sources. The summaries of and references to all documents, statutes,
reports and other instruments referred to herein do not purport to be complete,
comprehensive or definitive, and each such reference or summary is qualified in its entirety
by reference to each such document, statute, report or other instrument. The information
herein has been compiled from official and other sources and, while not guaranteed by the
County, is believed to be correct. So far as any statements made in this Official Statement
and the appendices attached hereto involve matters of opinion or of estimates whether or
not expressly stated, they are set forth as such and not as representation of fact, and no
representation is made that any of the estimates will be realized.
AUTHORIZATION OF OFFICIAL STATEMENT
The delivery of this Official Statement has been duly authorized by the County. At
the time of delivery of the Series 2024 Bonds, the Chairman of the Board and the County
Administrator will furnish a certificate to the effect that neither the Chairman nor said
56
County Administrator has any knowledge or reason to believe that this Official Statement,
as of its date and as of the date of delivery of the Series 2024 Bonds, contains any untrue
statement of a material fact or omits to state a material fact necessary in order to make the
statements made herein, in light of the circumstances under which they were made, not
misleading.
INDIAN RIVER COUNTY, FLORIDA
By;
Board of County Commissioners
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APPENDIXA
GENERAL INFORMATION REGARDING INDIAN RIVER COUNTY
APPENDIX B
ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR
ENDED SEPTEMBER 30, 2023
APPENDIX C
FORM OF BOND RESOLUTION
APPENDIX D
FORM OF APPROVING OPINION OF BOND COUNSEL
APPENDIX E
FORM OF CONTINUING DISCLOSURE CERTIFICATE
EXHIBIT D
FORM OF CONTINUING DISCLOSURE CERTIFICATE
DRAFT #1: 05/20/24
262-00014.E1
CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate ,(the "Disclosure Certificate"),* executed
and delivered by Indian River County, Florida (the "County") in connection with. the
issuance of $r 1 aggregate principal amount of its Indian River County; Florida
General Obligation Bonds, Series 2.024 (the "Series 2024 Bonds"). The Series 2024 Bonds
are being issued pursuant to Resolution No.. r adopted by the Board of County
Commissioners of the County (the "Board') on June [ 1, 2024 (the "Bond Resolution")
Capitalized terms used but not otherwise defined herein shall have the same meaning as
when used in the Bond Resolution unless the context would clearly indicate otherwise. The
County covenants and agrees as follows:
SECTION 1. PURPOSE OF DISCLOSURE CERTIFICATE. This
Disclosure Certificate is being executed and delivered by the County for the benefit of the
Series 2024 Bondholders and to assist. the Underwriter of the Series 2024 Bonds in
complying with the continuing disclosure requirements of. Rule 1Sc2-12 promulgated by
the Securities and Exchange Commission ("SEC")'pursuant to the Securities Exchange Act
of 1934 (the "Rule").
SECTION 2. NATURE OF UNDERTAKING. The County, in accordance
with the Rule, hereby covenants to provide or cause to- be provided to the Electronic
Municipal Market Access 'system ("EMMA") and maintained by the Municipal, Securities
Rulemaking Board (the "MSRB")'for purposes of the Rule and any other entity authorized
and approved by the SEC from time to time to act as a repository for purposes of complying
with the Rule:
(a) (i) annual financial information and operating data of the type
described as "Annual Information" in Section 3(a) hereof for each Fiscal Year :
ending on or after September 30, 2024, not later than the following April_ 30, and
(ii) audited financial statements of the County for each such Fiscal Year; not later
than :the following April 30, if then available as described in the final paragraph of
this Section 2; and
(b) in a timely manner not in excess of ten business days after the
occurrence of any Specified Event described in Section 3(b) hereof (a "Specified
Event"), notice of (i) any Specified Event described in Section 3(b) hereof, (ii) the
County's failure to provide the Annual Information on or. prior to the date specified
above, and (iii) any change in the accounting principles applied in the preparation
of its annual financial statements, any=change in its Fiscal Year, and the termination
of the County's continuing disclosure obligations:
The County expects that audited annual financial statements will be prepared and
will be filed together with the Annual Information identified below.. The. accounting
principles to be applied in the preparation of those financial statements will. be generally
accepted accounting principles, as modified by applicable State of Florida requirements
and the governmental accounting standards promulgated by the Governmental Accounting
Standards Board. In the event that the audited annual financial statements are not available
by the date on which the Annual Information will be provided, the County will provide
unaudited financial statements by the date specified and audited financial statements when
available.
SECTION 3. ANNUAL INFORMATION AND SPECIFIED EVENTS.
(a) "Annual Information" to be provided by the County for the immediately
completed Fiscal Year shall consist of information contained in the tables entitled:
(1) "Indian River County, Florida Property Tax Millage Rates for Direct
and Overlapping Governments;".
(2) "Indian River County, Florida Assessed Value and Actual Value of
Taxable Property (Unaudited);"
(3) "Indian River County, Florida Property Tax Levies and Collections
(Unaudited);" and
(4) "Indian River County, Florida Principal Property Taxpayers
(Unaudited)••
in the Official Statement prepared for the Series 2024 Bonds and presented in a manner
consistent with the presentation in the Official Statement; provided,. however, any .of such
information may be provided in the audited financial statements filed in accordance with
this Disclosure Certificate.
(b) Specified Events shall include the occurrence of the following events, within
the meaning of the Rule, with respect to the Series. 2024 Bonds:
(1) principal and interest payment delinquencies;
(2) non-payment related defaults, if material;
(3) unscheduled draws on debt service reserves reflecting financial
difficulties;
(4) unscheduled draws on credit enhancements reflecting. financial
difficulties;
(5) substitution of credit or liquidity providers, or their failure to perform;
2
(6) adverse tax opinions, the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue (IRS
Form 5701-TEB) or other material notices or determinations with respect to the tax
status of the Series 2024 Bonds, or other material events affecting the tax status of
the Series 2024 Bonds;
(7) modifications to rights of the holders of the Series 2024 Bonds, if
material;
(8) any Series 2024 Bond calls, if material, and tender offers;
(9) defeasances in whole or in part of the Series 2024 Bonds;
(10) release, substitution, or sale of property securing repayment of the
Series 2024 Bonds, if material;
(11) any changes in the ratings assigned to the Series 2024 Bonds;
(12) bankruptcy, insolvency, receivership or similar event of the County
(this event is considered to occur when any of the following occur: the appointment
of a receiver, fiscal agent or similar officer for the County in a proceeding under the
U.S. Bankruptcy Code or in any other proceeding under state or federal law in which
a court or governmental authority has assumed jurisdiction over substantially all of
the assets or business of the County, or if such jurisdiction has been assumed by
leaving the existing governing body and officials or officers in possession but
subject to the supervision and orders of a court or governmental authority, or the
entry of an order confirming a plan of reorganization, arrangement or liquidation by
a court or governmental authority having supervision or jurisdiction over
substantially all of the assets or business of the County);
(13) the consummation of a merger, consolidation, or acquisition involving
the County or the sale of all or substantially all of the assets of the County, other
than in the ordinary course of business, the entry into a definitive agreement to
undertake such an action or the termination of a definitive agreement relating to any
such actions, other than pursuant to its terms;
(14) appointment of a successor or additional trustee or the change of name
of a trustee;
(15) Incurrence of a financial obligation of the County, if material, or
agreement to covenants, events of default, remedies, priority rights, or other similar
terms of a financial obligation of the County, any of which affect holders of the
Series 2024 Bonds; and
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(16) Default, event of acceleration, termination event, modification of
terms, or other similar events under the terms of the financial obligation of the
County, any of which reflect financial difficulties.
The County may, from time to time, in its sole discretion, choose to provide notice
of the occurrence of certain other events if, in the judgment of the County, such other events
are material with respect to the Series 2024 Bonds, but the County does not specifically
undertake to commit to provide any such additional notice of the occurrence of any material
event except those events listed above. Any voluntary inclusion by the County of
supplemental information that is not required hereunder shall not expand the obligations of
the County hereunder and the County shall have no obligation to update such supplemental
information or include it in any subsequent report.
SECTION 4. SUBMISSION OF INFORMATION TO THE MSRB. The
information required to be disclosed pursuant to Sections 2 and 3 of this Disclosure
Certificate shall be submitted to EMMA and/or any successor repository required by
federal or state law or regulation. Subject to future changes in submission rules and
regulations, such submissions shall be provided to the MSRB, through EMMA, in portable
document format ("PDF") files configured to permit documents to be saved, viewed,
printed and retransmitted by electronic means. Such PDF files are required to be word -
searchable (allowing the user to search for specific terms used within the document through
a search or find function available in a software package).
Subject to future changes in submission rules and regulations, at the time that such
information is submitted through EMMA, the County, or any dissemination agent engaged
by the County pursuant to Section 7 hereof, shall also provide to the MSRB information
necessary to accurately identify:
(A) the category of information being provided;
(B) the period covered by the County's Comprehensive Annual Financial Report
and any additional financial information and operating data being provided;
(C) the issues or specific securities to which such submission is related or
otherwise material (including CUSIP number, County name, state, issue
description/securities name, dated date, maturity date, and/or coupon rate);
(D) the name of any Obligated Person other than the County;
(E) the name and date of the document being submitted; and
(F) contact information for the submitter.
SECTION 5. REMEDIES; NO EVENT OF DEFAULT. The County
agrees that its undertaking pursuant to the Rule set forth above is intended to be for the
11
benefit of the holders and beneficial owners of the Series 2024 Bonds and shall be
enforceable by any such holder or beneficial owner; provided that the right to enforce the
provisions of this undertaking shall be limited to a right. to obtain specific performance. of
the County's obligations hereunder and any failure by the County to comply with the
provisions of this undertaking shall not be an event of default with respect to the Series
2024 Bonds under the Bond Resolution.
SECTION 6. SEPARATE BOND REPORT NOT. REQUIRED;
INCORPORATION BY REFERENCE. The requirements of this Disclosure Certificate
do not necessitate the preparation of any separate annual. report addressing only the Series
2024 Bonds. These requirements may be met by the filing of a combined bond report or
the County's Comprehensive. Annual Financial Report; provided, such report includes all
of the required information and is available by April 30. Additionally, the County may. j
incorporate any information provided in any prior filing with EMMA or one of the
Nationally Recognized Municipal Securities Information Repositories recognized by the
SEC for purposes of the Rule or other information filed with. the SEC or .included in any
final official statement of the County; provided, such final official statement is filed with
the MSRB.
SECTION '7. DISSEMINATION AGENTS. The County may, from time
to time, appoint or engage a dissemination agent to assist it in carrying.out its obligations
under this . Disclosure Certificate, and. may discharge any such agent, with or without
appointing a successor dissemination agent. The County has appointed. HTS Continuing
Disclosure Services, a Division of Hilltop Securities Inc., as its initial dissemination agent.
SECTION 8. TERMINATION, The Countys obligations. under . this
'
DisclosureCertificate shall cease (a) upon: the legal defeasance, prior redemption, payment
in full of all of the Series 2024 Bonds, or (b) when the County no longer remains. an
Obligated Person with respect to the Series 2024 Bonds within the meaning of the Rule, or j
(c) upon the termination of the continuing disclosure requirements.: of the. Rule by
legislative, judicial or administrative action.
SECTION 9. AMENDMENTS. The County reserves the right. to amend the
provisions of this Disclosure Certificate as may be necessary or appropriate to achieve its
compliance with any applicable federal securities law or rule, to cure any ambiguity,
inconsistency or formal defect or omission, and to address any change in circumstances
arising from a change in legal requirements, change in law, or change in the identity, nature,
or status of the County, or type of business conducted by the County. Any such amendment
shall be made only in a manner consistent With the Rule and any amendments and
interpretations thereof by the SEC. Additionally,, compliance with any provision of this
Disclosure Certificate maybe waived. Any such amendment or waiver will.not be effective
unless this Disclosure Certificate (as amended or taking into account such waiver) would
have complied with the requirements of the Rule at the time of the primary offering of the
Series 2024 Bonds, after taking into account any applicable amendments to or official
5
interpretations of the Rule, as well as any change in circumstances, and until the County
shall have received either (a) a written opinion of bond or other qualified independent
special counsel selected by the County that the amendment or waiver would not materially
impair the interests of holders or beneficial owners of the Series 2024 Bonds, or (b) the
written consent to the amendment or waiver of the holders of at least a majority of the
principal amount of the Series 2024 Bonds then outstanding. Annual Information
containing any amended operating data or financial information shall explain, in narrative
form, the reasons for any such amendment and the impact of the change on the type of
operating data or financial information being provided. Additionally, in the year in which
any change in accounting principles is made, the County shall present a comparison (in
narrative form and also, if feasible, in quantitative form) between the financial statements
as prepared on the basis of the new accounting principles and those prepared on the basis
of the former accounting principles.
SECTION 10. OBLIGATED PERSONS. If any person other than the
County becomes an Obligated Person (as defined in the Rule) relating to the Series 2024
Bonds, the County shall use its best efforts to require such Obligated Person to comply
with all provisions of the Rule applicable to such Obligated Person. .•.•'�oniiy"i
Dated: [Tune 4 ], 2024
ATTESTED AND COUNTERSIGNED:
By:
Clerk of the Clerk the Circuit Court
and Ex -Officio Clerk of the Board of
County Commissioners of Indian River
County, Florida
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oard of County 7ominifip�Q''j
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