Loading...
HomeMy WebLinkAbout2000-250INDIAN RIVER COUNTY, FLonIDA DEFEASANCE REPORT FOR REFUNDING REVENUE BONDS SERIES 1992 CAUSEY DEMGEN & MOORE INC. Corldied Public Accounlanls and Cansullants Suite 4650 1801 California Stroet Denver, Colorado 80202.2681 Telephone: (303) 296.2229 September 1, 2000 Facsimile: (303) 296.3731 Indian River County 1840 25" Street Vero Beach, Florida 32960 Bryant, Miller and Olive, P.A. 201 South Monroe Street Tallahassee, Florida 32301 We have completed our engagement to verify the mathematical accuracy of (a) the computations relating to the adequacy of cash plus U.S. Treasury Securities to be held in escrow to pay the debt service requirements of the currently outstanding Refunding Revenue Bonds, Series 1992 (herein referred to as the "Defeased Bonds") issued by Indian River County, Florida (herein referred to as the "County") and (b) the yield on such escrowed securities. Our verification was performed solely on the schedules prepared based on information provided by the County which are reflected in Exhibits A through C which were prepared by us in performing the verification of the mathematical accuracy of the computations in the schedules provided. The accompanying exhibits of proposed transactions were prepared on the basis of assumptions and in accordance with the procedures described herein. We did not independently confirm the information used with outside parties. OUR UNDERSTANDING OF THE TRANSACTION On September 1, 2000, the County intends to contribute cash which will be used to purchase U.S. Treasury Securities and to provide cash which will be placed into an escrow account to defease the Defeased Bonds. The Escrow Agent will pay the debt service requirements of the Defeased Bonds on each scheduled payment date through and including September 1, 2005, without optional redemption prior to maturity. ESCROW ACCOUNT TRANSACTIONS We verified the mathematical accuracy of the accompanying calculations of the escrow account transactions proposed to defease the Defeased Bonds. The presently outstanding debt service requirements of the Defeased Bonds„ as described above, will be satisfied by the purchase of U.S. Treasury Securities (as described in Exhibit A-2) plus $9.93 in cash. The securities and cash will be placed in an irrevocable escrow account until the debt service requirements of the Defeased Bonds are paid as previously described. 40 • 4D Indian River County, Florida September 1, 2000 Page 2 We read a copy of the Official Statement for the Defeased Bonds insofar as such obligations are described with respect to principal outstanding, interest rates, and maturity dates. We assumed this document to be accurate, and all debt service payments on the Defeased Bonds to be current as of September 1, 2000. We compared the above information set Forth in such Official Statement with the related information contained in the schedules provided to us and found the information to be consistent. We compared the subscribed interest rates of the U.S. Treasury Securities (State and Local Government Series) to be purchased and placed in escrow with the maximum allowable interest rates as published in the Department of the Treasury Bureau of the Public Debt Form PD 4262 for August 25, 2000 and found the subscribed rates to be less than or equal to the maximum allowable rates for each respective maturity date. Based on the procedures and information set forth above, the computations presented in Exhibits A through B, which indicate that the cash and securities proposed to be placed in escrow by the County will produce the amounts necessary to provide for the timely payment of the proposed debt payment schedule on the Defeased Bonds, are mathematically correct. YIELD ON THE INVESTMENT IN ESCROWED OBLIGATIONS PURCHASED T© DEFEASE THE DEFEASED BONDS We verified the mathematical accuracy of the accompanying computation of the yield on the investment in escrowed U.S. Treasury Securities purchased to defease the Defeased Bonds based on an assumed settlement date of September 1, 2006 and a purchase price of $3,529,356.00. For purposes of this calculation, yield is defined as the rate of interest which, using the assumptions and procedures set forth herein, discounts the cash receipts from the escrowed securities to an amount equal to the purchase price of the escrowed securities. The computations were made using a 360 -day year with interest compounded semi-annually and were based on the dates the funds are to be received in the escrow account, and assume that all cash balances are not reinvested. We read a copy of the verification report prepared by Coopers & Lybrand on December S, 1992 related to the issuance of the Refunding Revenue 'Bonds, Series 1992 (herein referred to as the "1992 Bonds") insofar as it describes the yield on the 1992 Bonds. We assumed this document to be accurate. Based upon the procedures and information set forth above, the computations presented in Exhibit C, which indicate that the yield on the escrowed securities purchased to defease the Defeased Bonds is 5.40102% (which is less than the 5.40142% yield on the 1992 Bonds), are mathematically correct. rrnricaNrodim River Cmwy C�] Indian River County, Florida September 1, 2000 Page 3 USE OF THUS REPORT It is understood that this report is solely for the information of and assistance to the addressees hereof in connection with the defeasance of the Defeased Bonds and its not to be used, circulated, quoted or otherwise referred to for any other purpose without our written consent in any document, except that (i) reference may be made to the report in any closing documents pertaining to the defeasance of the Defeased Bonds, (ii) the report may be used in its entirety as an exhibit to the escrow agreement for the Defeased Bonds, ('iii) the report may be included in the transcripts pertaining to the defeasance of the Defeased Bonds, (iv) the report may be relied upon by any rating agency or bond insurer that shall have rated or insured or that will rate or insure the Defeased Bonds, and (v) the report may be relied upon by the Escrow Agent for the Defeased Bonds. The procedures performed represent those procedures deemed by the County and all other addressees hereto to be sufficient to assist such parties in evaluating the mathematical accuracy of the various computations cited above. The sufficiency of these procedures is solely the responsibility of the specified users of this report and should not be taken to supplant any additional inquiries or procedures that the users would undertake in their consideration of the transaction described herein. We make no representation regarding the sufficiency of the procedures summarized herein, either for the purpose for which this report has been requested or for any other purpose. This report should not be used by any party who does not agree to the procedures set forth herein and who does not take responsibility for the sufficiency and appropriateness of such procedures for their purposes. We have no obligation to update this report because of events, circumstances, or transactions occurring subsequent to the bate of this report. Very truly yours, wFlAc tlrnAur River UMF.LY EXHIBIT A INDIAN RIVER COUNTY, FLORIDA REFUNDING REVENUE BONDS SERIES 1992 ESCROW ACCOUNT CASH FLOW AS OF SEPTEMBER 1. 2000 TOTAL CASH RECEIPTS FROM CASH U.S. TREASURY DISBURSEMENTS SLGS FROM ESCROW CASH DATE (EXHIBIT A-11 (EXHIBIT B) BALANCE Beginning ................. Balance: 59.93 01 -Har -2001 597,234.65 397.235.00 9.58 O1-Sep•2001 727.473.30 727,235.00 247.88 01•Har-2002 80,616.43 80.855.OD 9.31 01 -Sep -2002 740,855.43 740.855.00 9.74 O1•Mar•2003 63,365.09 61,365.00 9.83 01 -Sep -2003 758.364.89 758.365.00 9.72 01 -Mar -2004 43.905.25 43.905.00 9.97 01 -Sep -2004 783.905.14 783,905.00 10.11 01 -Mar -2005 22.814.62 22.815.00 9.73 01-Sep•2005 802.815.27 802.815.00 10.00 ................... $4.121,350,07 14,121,350.00 v u n r�-1-I Iu� � �C � � •�-1 +�-1 1dJ uj Cp�� rn^tA Va�ONW •� ^�Pn o.-.ce-. nnnnnnnr�nn + D R N �A1 �If l!l Y�iy1 lf1 �df �Ff C yVyyy pupppf yu�pp] 40 '7M V�Y b4L1 W+OD ti9,04] w N' N W i H v a o .-.�(} : u� �n yr �n ur � un u^i u•'i ± � •o..+v ccpp �y tp sspp ��Cppp GH'9��Wry ••-i.�W VAN' NTJ L� �GHO +•-II a H F� 4 O Nv i0' 1n 1!l 4'1 4yy"� uyy'Y lP1 � Iicfiyl .R +D f�A Cin t�.{NN N��vv/JN Nt� N N N N N N H M n w W M o W U a O n d' • r-1 .-1 M .-� H H r-1 aONO .•-f r•INtiHHr-I W 4 .+h w LLS � W � W, +S] MM+�•1Nz Zal SZ5ig5 W H LAJ.. FN .p OONb M LAI �0 •b %tr �W �i44.1� �NNNN^ 7�w VS {I7 In a+r o OQN•, oCa NNNNN �� Wg ^� [pO N NNNNa N�4Jix � ri o cry ra-• U�.-.N . V�tC� ' V 65 O N � de V+ CO a cxr Gr .w 4 07 •G up 0 4 N 1S9 ci -1 G. •J d P14Q tJ1 6/1 ub AO ♦rr P N lD 4O N x �D N H N G + auoccyy0000 N[V R'NNNNNNN �ay,gg T -O d v m d rLa 4 d .� + xw x,n xinx�xua •v0a000cao0 v u EXHIBIT C INDIAN RIVER COUNTY. FLORIDA REFUNDING REVENUE BONDS SERIES 1992 ESCROW YIELD CALCULATION AS OF SEPTEMBER 1, 2000 $4,121.350.07 $3.529.356.00 TOTAL COST OF SECURITIES $3,529,356.40 TOTAL CASH PRESENT VALUE AT RECEIPTS FROM SEPTEMBER 1. 2006 U.S. TREASURY USING A SEMI-ANNUALLY SLGS COMPOUNDED YIELD OF DATE (EXHIBIT A) 5.401029 ..................................................... 01 -Mar -2001 $97.234.65 $94,677.86 01 -Sep -2001 727,473.30 684,118.47 01 -Mar -2002 80,616.43 74.422.76 01 -Sep -2002 740,855.43 665.952.20 01 -Har -2003 63.365.09 55.460.92 01 -Sep -2003 758.364.89 646,312.58 01 -Mar -2004 43,905.25 36,434.12 01 -Sep -2004 783,905.14 633,406.76 01 -Mar -2005 22,814.62 17.949.81 01 -Sep -2005 802,815.27 615.020.52 $4,121.350.07 $3.529.356.00 TOTAL COST OF SECURITIES $3,529,356.40 40 40 J v� r,; RESOLUTION NO. 2000- 086, A RESOLUTION Of INDIAN RIVER COUNTY, FLORIDA PROVIDING FOR THE DEFEASANCE OF TETE OUTSTANDING INDIAN RIVER COUNTY, FLORIDA REFUNDING REVENUE BONDS, SERIES 1992; APPROVING THE FORM OF AND AUTHORIZING TIME EXECUTION AND DELIVERY OF AN ESCROW DEPOSIT AGREEMENT BETWEEN THE COUNTY .AND THE ESCROW HOLDER; APPOINTING AN ESCROW MOLDER;, AUT14ORIZING OTI[FR REQUIRED ACTIONS, PROVIDING FOR SEVERABILITY AND AN EFFECTIVE DATE. BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA: SECTION I. AUTHORITY FOR THIS RESOLUTION, This Resolution is adopted pursuant to the provisions of Chapter 125, Florida Statutes, County Home Rule Ordinance 1�o.,, 7.19, enacted August 3, 1977 and effective August 9, 1977, as amended, and other applicable provisions of law.. SECTION 2. FINDINGS. It is hereby found and determined that: A. Pursuant to Resolution No. 92-216 adopted by the County Commission on November 24, 1992 (the "' 1992 Bond Resolution, together with the 1955 Bond Resolution, the "Bond Resolution"), the County has previously issued and sold its Refunding Revenue Bonds, Series 1992 (the "Series 1992 Bonds"). B. The County has determined that it has sufficient available funds, together with fwids on deposit in the funds and accounts securing the Series 1992 Bonds to use to defease all of the outstanding Series 1992 Bonds and to pay the costs of such defeasance. SECTION 3. AUTHORIZATION OF DEFEASANCE. There is hereby authorized the defeasance all of the Series 1992 Bonds set forth in 'Exhibit A hereto on the respective call date set forth on Exhibit A hereto, and the payment of all costs associated therewith. SECTION 4. APPROVAL, OF THE- ESCROW DEPOSIT AGREEMENT. The Escrow Deposit Agreement in substantially the form attached hereto as Exhibit 6 is hereby approved and the Chairman or Vice -Chairman and the Clerk are hereby authorized and directed to execute and deliver the Escrow Deposit Agreement on behalf of and in the name of the County, with such additional changes, insertions and omissions therein as may be otherwise made and approved by said officers of the County executing the sonic, such MCLItion to be Conclusive evidence of such approval. STATE OF FLORIDA ;NDIAN RIVER COUNTY :riIS IS T'7 CERTIFY THAT THIS IS i ,:2py OF ,:.L „N F!.: I") THIS .;PEKE. j CFR -f K aARTON, CLERK DATE - 00 40 40 C7 RESOLUTION NO. 2000-056 SECTION 5. APPOINTMENT OF THE ESCROW HOLDER. The County Finance Director is hereby authorized to select and appoint the entity to serve as Escrow Holder under the Escrow Deposit Agreement. SECTION 6. GENERAL AUTHORITY. The Chairman or Vice -Chairman, the County Administrator, the County Attorney, the Clerk and anv other proper officials of the County are herebv authorized to do all acts and things rewired of them by this Resolution, the Bond' Resolution, the Escrow Deposit Agreement or that may otherwise be desirable or consistent with accomplishing the full, punctual and complete performance of all the terms, covenants and agreements contained in any orthe foregoing and the County is hereby authorized and directed to execute and deliver any and all papers and instruments and to cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated thereby. SECTION 7. 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, but not expressly prohibited or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shaihbe null and void and shall he deerned sepanble kine die rtrnainine cOVOUuu., ugnx ntrnt,,,r [In,,. isions.ind shall in n,, u,n effect the validity of the other provisions Hereof or or the Bonds. SECTION 9. EF'F'ECTIVE DATE. This Resolution shall be effective immediately upon its adoption. I%i.JVL.V 11VI7 14V. Lvuu-uVV Adopted this 15th clay of August 2000. BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA Fran B. Adams As: Chairman Attest. U M ':ele APPROVED A5 TO FORM AND L1~GAI. SUFFICIENCY � CouQy AttO6cy 3 (�CR