HomeMy WebLinkAbout1996-042RESOLUTION NO. 96-42
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
INDIAN RIVER COUNTY, FLORIDA, AMENDING AND SUPPLEMENTING
RESOLUTION NO. 93-80; AUTHORIZING THE NEGOTIATED SALE OF
NOT TO EXCEED $45,000,000 INDIAN RIVER COUNTY, FLORIDA,
WATER AND SEWER REVENUE BONDS, SERIES 1996 TO WILLIAM R.
HOUGH & CO. AND SMITH BARNEY INC., SUBJECT TO THE TERMS
AND CONDITIONS OF A BOND PURCHASE CONTRACT; APPROVING THE
FORM OF SUCH PURCHASE CONTRACT RELATING TO THE NEGOTIATED
SALE; DELEGATING THE AUTHORITY TO EXECUTE AND DELIVER THE
BOND PURCHASE CONTRACT TO CERTAIN OFFICERS; AUTHORIZING
THE DISTRIBUTION AND EXECUTION OF A PRELIMINARY OFFICIAL
STATEMENT AND AN OFFICIAL STATEMENT IN CONNECTION WITH
THE DELIVERY OF THE BONDS; CANCELING THE REMAINING
AUTHORIZED BUT UNISSUED BONDS; AUTHORIZING THE PURCHASE
OF MUNICIPAL BOND INSURANCE; AUTHORIZING THE PURCHASE OF
A DEBT SERVICE RESERVE FUND POLICY; AUTHORIZING THE
EXECUTION OF A FINANCIAL GUARANTY AGREEMENT WITH
FINANCIAL GUARANTY INSURANCE COMPANY; PROVIDING CERTAIN
OTHER MATTERS IN CONNECTION WITH THE ISSUANCE AND DELIV-
ERY OF SUCH BONDS; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Board of County Commissioners of Indian River
County, Florida (the "Issuer"), has by Resolution No. 93-80 adopted
by the County on April 13, 1993 (the "Master Bond Resolution"), as
supplemented from time to time, particularly by Resolution No. 96-
30, adopted on February 20, 1996 (the 111996 Resolution"), autho-
rized the issuance of not to exceed $45,000,000 Indian River
County, Florida, Water and Sewer Revenue Bonds, Series 1996 (the
"Bonds"); and
WHEREAS, the proceeds of the Bonds are to be used to (i) make
certain capital improvements and additions to the water and sewer
system owned and operated by the County; (ii) reimburse the County
for the cost of acquiring a water and sewer system from the City of
Sebastian, Florida; (iii) make a deposit to the Reserve Account
established under the Master Bond Resolution; (iv) fund the Sinking
Fund in an amount to pay a portion of the interest first coming due
on the Bonds; and (v) pay certain costs incurred in connection with
the issuance of the Bonds; and
WHEREAS, the Issuer intends to negotiate the sale of the Bonds
as hereinafter provided to William R. Hough & Co. and Smith Barney
Inc. (the "Underwriters") for the reasons set forth herein; and
WHEREAS, the Issuer wishes to approve the form of an agreement
for the purchase of the Bonds authorized to be sold hereby; and
WHEREAS, the Issuer desires to delegate to the Chairman or
Vice Chairman and the County Administrator or the Director of
Management and Budget the authority to award the sale of the Bonds
to the Underwriters;
WHEREAS, the Issuer desires to ratify the distribution of and
use by the Underwriters of a Preliminary Official Statement, to
authorize the execution and distribution of an Official Statement
in connection with the issuance of the Bonds and to take certain
other actions in connection with the issuance and sale of the
Bonds;
WHEREAS, the Issuer has authorized the purchase of municipal
bond insurance and has received a commitment for such insurance
from Financial Guaranty Insurance Company (the "Bond Insurer"); and
WHEREAS, the Issuer has authorized the deposit of a Debt
Service Reserve Fund Policy in the Reserve Account and desires to
purchase such Reserve Policy from Financial Guaranty Insurance
Company and to authorize the execution of a Financial Guaranty
Agreement in connection therewith; and
WHEREAS, the Issuer will be provided all applicable disclosure
information required by Section 218.385, Florida Statutes, at the
time of execution and delivery of the Bond Purchase Contract; and
WHEREAS, this resolution shall constitute a supplemental
resolution under the terms of the 1996 Resolution and all
capitalized undefined terms used herein shall have the meanings set
forth in the Resolution;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
SSIONERS OF INDIAN RIVER COUNTY, FLORIDA:
SECTION 1. There is hereby authorized and directed to be
issued the Issuer's Water and Sewer Revenue Bonds, Series 1996 (the
"Bonds"), in the principal amount not to exceed $45,000,000. The
Bonds shall be issued under and secured by the Master Bond
Resolution. The Bonds shall mature in the amounts and at the
times, shall bear interest at the rates, be redeemable at the
redemption prices and upon the terms and shall have all of the
other characteristics, all as to be approved by the Chairman or
Vice Chairman and the County Administrator or the Director of
Management and Budget prior to sale of said Bonds, as provided in
this resolution. The Bonds shall be executed, authenticated and
delivered by the officers of the Issuer authorized below in
substantially the form set forth in the Master Bond Resolution in
fully registered form.
SECTION 2. It is hereby found and determined that due to the
complexity of the financing and the need to coordinate matters
among the Issuer and the Underwriter, it is in the best interest of
the Issuer to negotiate the sale of the Bonds. The disclosure
required by Section 218.385, Florida Statutes, as amended, shall be
provided to the Issuer, as evidenced by a schedule attached to the
Bond Purchase Contract wherein the Underwriter agrees to provide
disclosure to the Issuer prior to execution by the Issuer of the
Bond Purchase Contract. The negotiated sale of not to exceed
$45,000,000 Water and Sewer Revenue Bonds, Series 1996 at the
subsequent determination of the Chairman or Vice Chairman and the
County Administrator or the Director of Management and Budget at a
price not less than 99% (exclusive of any original issue discount
on the Bonds) of the aggregate principal amount of such Bonds is
hereby approved to the Underwriter upon substantially the terms and
conditions set forth in the Bond Purchase Contract, which is hereby
approved in substantially the form attached hereto as Exhibit A.
The Bond Purchase Contract, with such changes, alterations and
corrections as may be approved by the Chairman or Vice Chairman and
the County Administrator or the Director of Management and Budget,
such approval to be presumed by his execution thereof, is hereby
approved by the Issuer and the Issuer hereby authorizes said
Chairman or Vice Chairman and the County Administrator or the
Director of Management and Budget to execute and deliver (attested
by the Clerk) said Bond Purchase Contract in the name of and on
behalf of the Issuer, all of the provisions of which, when executed
and delivered by the Issuer as authorized herein shall be deemed to
be a part of this instrument as fully and to the same extent as if
incorporated verbatim herein. Award of the Bonds to the
Underwriter with the true interest cost (taking into consideration
underwriter's discount and original issue discount) on the Bonds
not exceeding 5.80% per annum, and maturities on the Bonds being
not later than the year 2026, may be approved by the Chairman or
Vice Chairman and the County Administrator or the Director of
Management and Budget, as attested by the Clerk, without need of
further authorization of the Issuer. The Bonds are hereby sold to
the Underwriter (subject to such conditions) in the amount, at the
price and upon the final terms set forth in the Bond Purchase
Contract as may be approved by the Chairman or vice Chairman and
the County Administrator or the Director of Management and Budget,
as attested by the Clerk. The authorization for any Bonds
authorized but not purchased by the Underwriter under the Bond
Purchase Contract shall be canceled.
SECTION 5. The Bonds shall be issued under and secured by the
Master Bond Resolution, as supplemented, particularly by the 1996
Resolution and shall be executed and delivered by the Chairman of
the Issuer and the Clerk in substantially the form set forth in the
Master Bond Resolution, with such additional changes and insertions
therein as conform to the provisions of the Bond Purchase Contract
and this resolution and such execution and delivery shall be
conclusive evidence of the approval thereof by such officers.
SECTION 6. As previously authorized in the Master Bond
Resolution, insurance to insure the holder of any Bond the
scheduled payment of principal and interest on behalf of the Issuer
shall be purchased from the Bond Insurer and payment for such
insurance is hereby authorized from Bond proceeds in accordance
with the Commitment for Municipal Bond Insurance from the Bond
Insurer attached hereto as Exhibit "B." All provisions of the
Master Bond Resolution applicable to the Bond Insurer for the
Series 1993 Bonds shall be equally applicable to the Bond Insurer
for the Series 1996 Bonds.
SECTION 7. As previously authorized in the Master Bond
Resolution, the Issuer shall fund the Reserve Account in the Debt
Service Fund with a debt service reserve fund policy purchased from
Financial Guaranty Insurance Company. The Chairman is authorized
to execute and the Clerk is authorized to attest a Financial
Guaranty Agreement in substantially the form attached to the
Commitment for Debt Service Reserve Fund Policy attached as Exhibit
B hereto, with such changes, insertions and omissions as may be
approved by such officers.
SECTION 8. The Chase Manhattan Bank, N.A., New York, New York
is hereby appointed Paying Agent and Registrar for the Bonds.
SECTION 9. The distribution by the Underwriters of the
Preliminary Official Statement, a copy of which is attached hereto
as Exhibit "C" is hereby approved, confirmed and ratified, and the
Issuer hereby confirms and ratifies the prior determination of the
County Administrator that such Preliminary Official Statement was,
as of its date, in nearly final form within the contemplation of
Rule 15c2-12 of the Securities and Exchange Commission. The
distribution of a final Official Statement of the Issuer relating
to the issuance of the Bonds is hereby approved, such final
Official Statement to be in substantially the form attached as
Exhibit "C" hereto, with such additional changes, insertions and
omissions as may be made and approved by officers of the Issuer
executing the same, such execution to be conclusive evidence of any
such approval. The Chairman and the County Administrator are
hereby authorized to execute such Official Statement in substan-
tially the form attached hereto. The execution of such Official
Statement by such officers is hereby approved with such additional
changes, insertions and omissions as may be made and approved by
such officers.
SECTION 10. Section 17(B)(7) of the Master Bond Resolution is
hereby amended to read as follows:
(7) Seventh, the balance of any moneys remaining
may be used by the County for any lawful purpose;
provided, however, during any period in which the Reserve
Policy is in effect, the County has covenanted to
withdraw such balance only as of the end of any fiscal
year.
SECTION 11. All prior resolutions of the Issuer inconsistent
with the provisions of this Resolution are hereby modified, supple-
mented and amended to conform with the provisions herein contained
and except as so modified, supplemented and amended hereby shall
remain in full force and effect.
4
SECTION 12. The Chairman of the Board of County Commissioners
(or in her absence, the Vice -Chairman), the Clerk, the Director of
Management and Budget, the County Administrator, the County Finance
Director and the County Attorney or any other appropriate officers
of the Issuer are hereby authorized and directed to execute any and
all certifications or other instruments or documents required by
the Master Bond Resolution, the 1996 Resolution, this Resolution,
the Bond Purchase Contract or any other document referred to above
as a prerequisite or precondition to the issuance of the Bonds and
any such representation made therein shall be deemed to be made on
behalf of the Issuer. All action taken to date by the officers of
the Issuer in furtherance of the issuance of the Bonds is hereby
approved, confirmed and ratified.
SECTION 14. This resolution shall take effect immediately
upon its adoption.
PASSED AND ADOPTED the , lS day of (IA,L, 1996.
(SEAL)
ATTEST:
ChunWrgerk
A pprr'ov0d as to form and
legal sufficiency-
Charles
ufficiencyCharles P. Vitunac
County Attorney
BOARD OF COUNTY COMMISSIONERS
INDIAN RIVER COUNTY, FLORIDA
Chairman Fran B. Adams
EXHIBIT A
BOND PURCHASE CONTRACT
$43,000,000
INDIAN RIVER COUNTY, FLORIDA
WATER AND SEWER REVENUE BONDS, SERIES 1996
BOND PURCHASE CONTRACT
Indian River County
1840 25th Street
Vero Beach, Florida 32960
Ladies and Gentlemen:
William R. Hough & Co. and Smith Bamey; Inc., (the "Underwriters"), hereby offer to enter into
this Bond Purchase Contract with Indian River County, Florida (the "Issuer"), for the purchase by the
Underwriters and the sale by the Issuer of the Bonds referred to in Section 1 hereof. This offer is made
subject to acceptance by the Issuer of this Bond Purchase Contract, evidenced by action taken by the Issuer
on 1996, and by the execution of this Bond Purchase Contract by duly authorized officers
of the Issuer forthwith after such action has been taken. Upon such acceptance and execution, this Bond
Purchase Contract shall be in full force and effect in accordance with its terms and shall be binding upon
the Issuer and the Underwriters.
1. Agreement to Upon the terms and conditions and in reliance on the
representations and covenants hereinafter set forth, the Underwriters hereby agree to purchase from the
Issuer, and the Issuer hereby agrees to sell to the Underwriters, all (but not less than all) of S
in aggregate principal amount of the Issuer's Water and Sewer Revenue Bonds, Series 19%. at an
aggregate purchase price of $ which takes into account an Underwriters's discount of $_
_, and an original issue discount of S , plus accrued interest thereon from March 1, 1996, to the
date of Closing (hereinafter defined) in the amount of $
The statement required by Section 218.385 (2)(3) and (6), Florida Statutes, is attached hereto as
Exhibit A.
2. Description of Bonds. The Bonds are described in, and will be issued and secured under
and pursuant to the authority of the Constitution and laws of the State of Florida including Chapter 125,
Florida Statutes and other applicable provisions of the law (the Act) and Indian River County Resolution
No. 93-80 as amended and supplemented (collectively, the "Resolution") including, but not limited to
amendments and supplements made by Resolution No. 96-30 adopted by the County on February 20, 1996,
and amendments and supplements made by Resolution No. adopted by the County on _. The
Bonds shall mature in such years and in the amounts, shall bear interest payable on March 1 and September
1 of each year commencing on September 1, 1996, at the rates set forth in Exhibit B attached hereto and
shall be subject to optional redemption at the times and price set forth in Exhibit C attached hereto. In
addition, in connection with the issuance of the Bonds, Financial Guaranty Insurance Company ("FGIC")
will issue a municipal bond insurance policy (the "Insurance Policy") insuring payment of the Bonds, dated
the day of the Closing.
3. cerin . The Underwriters intends intend to make an offering of all of the Bonds
at not in excess of the offering price (or yield) set forth on the cover page of the Official Statement referred
to in Section 4 hereof. The Underwriters, however, ftwryes reserve the right to change such offering price
(or yield) as the Underwriters shall deem necessary in connection with the marketing of the Bonds at any
time.
C117=,A- Ili i n i + i, KID -773 11-7777-, VM
(a) Prior to the date hereof, you have provided to the Underwriters for its their review
the Preliminary Official Statement dated March 6, 1996, that you deemed final as of its date (the
"Nearly Final Official Statement"), except for certain permitted omissions (the "permitted
omissions"), as contemplated by Rule 15c2-12 of the Securities and Exchange Commission ("Rule
15c2-12" or the "Rule") in connection with the pricing of the Bonds. The Underwriters hes have
reviewed the Nearly Final Official Statement prior to the execution of this Purchase Contract.
(b) The Issuer shall deliver, or cause to be delivered, at its expense to the
Underwriters within seven (7) business days after the date hereof or within such shorter period as
may be requested by the Underwriters in order to accompany any confirmation that requests
payment from any customer, sufficient copies of the Official Statement dated the date hereof, with
respect to the bonds (the "Official Statement"), to enable the Underwriters to fulfill its their
obligations pursuant to the securities laws of Florida and the United States, in form and substance
satisfactory to the Underwriters and (ii) an executed original counterpart or certified copy of the
Official Statement and the Resolution. In determining whether the number of copies to be delivered
by the Issuer are reasonably necessary, at a minimum the number shall be sufficient to enable the
Underwriters to comply with the requirements of Rule 15c2-12, all applicable rules of the
Municipal Securities Rulemaking Board ("MSRB") and to fulfill its their duties and responsibilities
under Florida and federal securities laws generally.
The Underwriters agrees agree to file the Official Statement with each Nationally
Recognized Municipal Securities Information Repository ("NRMSIR") and Florida Repository, if any,
which has been so designated by the Securities and Exchange Commission pursuant to Rule 15c2-12 and
with the MSRB (accompanied by a completed Form G-36) not later than two (2) business days after the
Closing, and will furnish a list of the names and addresses of each such NRMSIR and Florida Repository,
if any, receiving a copy to the Issuer. The filing of the Official Statement with each such NRMSIR and
Florida Repository, if any, shall be in accordance with the terms and conditions applicable to such
NRMSIR and Florida Repository.
The Issuer authorizes the use and distribution of the Official Statement in connection with
the public offering and sale of the Bonds. The Underwriters agrees agree that it they will not confirm the
sale of any Bonds unless the confirmation of sale requesting payment is accompanied or preceded by the
delivery of a copy of the Official Statement. The Underwriters shall notify the Issuer, (i) of the occurrence
of the "end of the underwriting period," as such tern is defined in the Rule, on the date which is one day
thereafter, and (li) of the passage of the date after which the Underwriters no longer remains obligated to
deliver Official Statements pursuant to the Rule on the date which is one day thereafter.
(c) From the date hereof until the time when the Official Statement is available to any
person from a NRMSIR (but in no case less than 25 days following the end of the underwriting
period as determined in accordance with the provisions below), if any event occurs which may
make it necessary to amend or supplement the Official Statement in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading, the Issuer
shall notify the Underwriters and if, in the opinion of the Issuer or the Underwriters, such event
requires the preparation and publication of an amendment or supplement to the Official Statement,
the Issuer, at its expense, promptly will prepare an appropriate amendment or supplement thereto
(and file, or cause to be filed, the same with each NRMSIR having the Official Statement on file,
file with the MSRB if the MSRB is requiring or permitting the filing of continuing disclosure
information, and mail such amendment or supplement to each record owner of Bonds) so that the
statements in the Official Statement as so amended or supplemented will not, in light of the
circumstances under which they were made, be misleading, in a form and in a manner approved
by the Underwriters. The Issuer will promptly notify the Underwriters of the occurrence of any
event of which it has knowledge, which, in its opinion, is an event described in the preceding
sentence. The amendments or supplements that may be authorized for use with respect to the Bonds
are hereinafter included within the term "Official Statement."
(d) Unless otherwise notified in writing by the Underwriters on or prior to the date
of the Closing, the Issuer can assume that the "end of the underwriting period" for the Bonds for
all purposes of the Rule is the date of the Closing. In the event such notice is given in writing by
the Underwriters, which notice shall state whether it relates to the Bonds, the Underwriters agree
to notify the Sports Authority in writing following the occurrence of the "end of the underwriting
period" as defined in the Rule for the Bonds identified in such notice. The "end of the
underwriting period" as used herein shall mean the date of the Closing or such later date as to
which notice is given by the Underwriters in accordance with the preceding sentence.
S. Good Faith DepWtt. Delivered to the Issuer herewith is a corporate check payable to
the order of the Issuer, in the amount of $ (such check or proceeds thereof being hereinafter
referred to as the "Good Faith Deposit"). If the Issuer accepts this offer, the Issuer shall hold the check for
said Good Faith Deposit uncashed as security for the performance by the Underwriters of its their
obligations to accept and pay for the Bonds at the Closing. In the event of the Underwriters' Underwriters'
compliance with such obligations, the Issuer shall return such check to the Underwriters at the Closing.
In the event the Issuer does not execute this Bond Purchase Contract, the Good Faith Deposit shall be
immediately returned to the Underwriters without interest. In the event the Issuer fails to deliver the Bonds
at the Closing, or in the event the Issuer is unable to satisfy the conditions of its obligations to the
Underwriters as set forth in this Bond Purchase Contract, or in the event such obligations of the
Underwriters are terminated for any reason permitted by this Bond Purchase Contract, this Bond Purchase
Contract shall terminate, and the Good Faith Deposit, uncashed, shall be immediately returned to the
Underwriters without interest. In the event that the Underwriters fails (other than for a reason permitted
hereunder) to purchase, accept delivery of and pay for the Bonds at the Closing as herein provided, the
Issuer may present said Good Faith Deposit for payment and the amount of the Good Faith Deposit may
be retained as full liquidated damages for such failure and for any defaults hereunder on the part of the
Underwriters. Such retention shall constitute a full release and discharge of all claims by the Issuer against
the Underwriters out of the transactions contemplated hereby.
6. Representations. and Covenants of Issuer. The Issuer hereby represents and covenants
with, the Underwriters as follows:
(a) The Issuer is and will be at the date of Closing duly organized and validly existing
as a nwinieilial emperstien political subdivision of the State of Florida with the powers and
authority set forth in Florida Constitution, Chapter 466125, Florida Statutes, as amended, and
other applicable provisions of law (collectively, the "Act").
(b) 'fhe Issuer has full legal right, power and authority to: (i) enter into this Bond
Purchase Contract (ii) adopt the Resolution, (iii) sell, issue and deliver the Bonds to the
Underwriters as provided herein, and (iv) carry out and consummate the transactions contemplated
by this Bond Purchase Contract, the Bonds, the Resolution and the Official Statement and any and
all other agreements and documents as may be required to be executed and delivered by the Issuer
in order to carry out, give effect to and consummate the transactions contemplated hereby, and by
the Resolution and the Official Statement.
(c) The Issuer has complied and at the Closing will be in compliance with all
provisions of the Constitution and laws of the State of Florida including, without limitation, the Act
and with its obligations pertaining to and in connection with the issuance and sale of the Bonds.
A The information contained in the Official Statement will be true and correct in all
material respects and will not contain any untrue statement of a material fact and will not omit to
state a material fact that should be stated therein or is necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading. The Official
Statement in its entirety has been authorized and approved by the Issuer. The Issuer will not amend
or supplement the Official Statement without the prior written consent of the Underwriters. For
a period of sixty (60) days after the date of the Closing, the Issuer will promptly notify the
Underwriters of any material adverse change in its financial condition or legal status or of any
other event, which could have a material adverse effect on the Bonds of which it shall become
aware.
(e) The Issuer has duly adopted the Resolution and has or prior to the date of Closing
will have duly authorized all necessary action to be taken by the Issuer for (i) the issuance and sale
of the Bonds upon the terms set forth herein, in the Resolution and in the Official Statement; (ii)
the use of the Official Statement; (iii) the execution, delivery, receipt and due performance of this
Bond Purchase Contract, the Bonds, and any and all such other agreements and documents as may
be required to be executed, delivered and received by the Issuer in order to carry out, give effect
to and consummate the transactions contemplated hereby, by the Resolution, and the Official
Statement; and (iv) the carrying out, giving effect to and consummation of the transactions
contemplated hereby and by the Official Statement, and the Resolution.
(f) There is no action, suit, proceeding, inquiry or investigation to which the Issuer
is a party at law or in equity or before or by any court, public board or body pending or, to the
best knowledge of the Issuer, threatened against or affecting the Issuer (or, to the best knowledge
of the Issuer, any meritorious basis therefor), where an unfavorable decision, ruling or finding
would adversely affect (i) the transactions contemplated hereby or by the Resolution, or the Official
Statement or the validity or enforceability of the Bonds, the Resolution, this Bond Purchase
Contract or any agreement or instrument to which the Issuer is or is expected to be a party and
which is used or contemplated for use in the consummation of the transactions contemplated hereby
or by the Resolution, or the Official Statement, (ii) the pledge or lien on the Pledged Funds
pursuant to the Resolution or (iii) the exclusion from gross income of interest on the Bonds for
federal income tax purposes.
(g) The execution and delivery by the Issuer of the Official Statement, the Bonds, this
Bond Purchase Contract, and the other agreements contemplated hereby and by the Resolution,
or the Official Statement, and compliance with the provisions thereof, will not conflict with or
constitute on the Issuer's part a breach of or a default under (i) its Charter or any other governing
instruments; (ii) any indenture, mortgage, lease, resolution, ordinance, bond or other agreement
or instrument to which the Issuer is a party or by which the Issuer is bound; or (iii) any
constitutional provision or statute or any order, rule or regulation of any court or governmental
agency or body having jurisdiction over the Issuer or any of its activities or property. All consents,
approvals, authorizations and orders of governmental or regulatory authorities, if any, which are
required to be obtained by the Issuer in connection with the issuance and sale of the Bonds have
been obtained and remain in full force and effect; provided, however, that no representation is
hereby made as to compliance with federal or state securities laws.
(h) This Bond Purchase Contract , when executed and delivered, and the Resolution
when enacted, will constitute valid, legally binding and enforceable special obligations of the Issuer
(subject in case of the Bond Purchase Contract and the Resolution to usual equity principles and
to any applicable bankruptcy, reorganization, insolvency, moratorium or other laws affecting the
enforcement of creditors' rights generally from time to time in effect). The Bonds, when issued,
authenticated, delivered and paid for as herein provided, will have been duly authorized, executed,
authenticated, issued and delivered in accordance with the terms of the Resolution and will
constitute valid and legally binding limited obligations of the Issuer enforceable in accordance with
and entitled to the benefits and security of the Resolution (subject to usual equitable principles and
any applicable bankruptcy, reorganization, insolvency, moratorium or other laws affecting the
enforcement of creditors' rights generally from time to time in effect) and the Resolution will
provide, for the benefit and security of the holders from time to time of the Bonds, a legally valid
and binding pledge of and the first lien on the Pledged Funds pledged under the Resolution.
(i) The Issuer has not been notified of any listing or proposed listing by the Internal
Revenue Service to the effect that the Issuer is a bond issuer whose arbitrage certifications may not
be relied upon.
0) The Issuer agrees to cooperate with the Underwriters in any endeavor to qualify
the Bonds for offering and sale under the securities laws of such states or jurisdictions as the
Underwriters may request. The Issuer authorizes and consents to the use by the Underwriters of
the Official Statement, in obtaining such qualifications; provided, that the Issuer shall not be
required (i) to execute a general or special consent to service of process in any jurisdiction where
it is not now so subject or (ii) to be qualified to do business in any jurisdiction where it is not now
so qualified in connection with any such qualification.
(k) The issuance and sale of the Bonds is not subject to any transfer or other
documentary stamp taxes of the State of Florida or any political subdivision thereof.
(1) Neither the Issuer nor anyone acting on its behalf has, directly or indirectly,
offered the Bonds for sale to, or solicited any offer to buy the same from, anyone other than the
Underwriters.
(m) On or prior to closing the Official Statement as provided above will have been duly
authorized, executed and delivered, by the Issuer.
(n) Any certificate signed by any of the Issuer's authorized officers and delivered to
the Underwriters shall be deemed to be a representation by the Issuer to the Underwriters as to the
statements made therein.
(o) The Issuer shall take no action between the date hereof and the date of the initial
issuance of the Bonds which will cause any of the representations made in this Section 5 to be
untrue as of the initial issuance of the Bonds.
(p) The Issuer will not take any action or, to the extent the Issuer has control over such
action, permit any action to be taken which might result in the loss of the federal tax exempt status
of interest on the Bonds.
(q) The Issuer is not in default and has not been in default at any time after December
31, 1975, as to principal or interest with respect to any obligation issued by the Issuer, except as
disclosed in the Official Statement.
(r) The Issuer will furnish such information, execute such instruments and take such
other action not inconsistent with law in cooperation with the Underwriters as the Underwriters
may reasonably request in order (i) to qualify the Bonds for offer and sale under the Blue Sky or
other securities law and regulations of such states and other jurisdictions of the United States as
the Underwriters may designate, and (ii) to determine the eligibility of the Bonds for investment
under the laws of such states and other jurisdictions, and will use its best efforts to continue such
qualifications in effect so long as required for the distribution of the Bonds; provided that the
Sperm Acid n* Issuer shall not be obligated to qualify to do business or to take any actions that
would subject it to general service of process in any state where it is not now so subject.
7. Disclosure. The Issuer will undertake pursuant to the Resolution sM
atmehed hereto as EyAibi! E) that the County has not previously failed to satisfy the terms of a Continuing
Disclosure obligation to comply with the Continuing Disclosure Certificate.
8. Oft". At , 1:00 p.m., New York time, on , 1996, or at such other
time or at such other date as shall have been mutually agreed upon by the Issuer and the Underwriters, the
Issuer will deliver, or cause to be delivered, to the Underwriters the Bonds, in definitive form, duly
executed and authenticated, together with the other documents herein required; and the Underwriters will
accept such delivery and pay the purchase price of the Bonds by delivering to the Issuer either immediately
available funds by wire transfer or a federal funds check payable to the order of the Issuer as required by
the Issuer. Such payment and delivery is herein called the "Closing." If at the Closing the Issuer fails to
deliver the Bonds to the Underwriters as provided herein, or if at the Closing any of the conditions
specified in Section 9 hereof shall not have been fulfilled to the satisfaction of the Underwriters, the
Underwriters may elect to be relieved of any further obligations under this Bond Purchase Contract without
thereby waiving any other rights the Underwriters may have by reason of such failure or nonfulfillment.
Payment for and delivery of the Bonds as aforesaid shall be made at such place or places
as shall have been mutually agreed upon by the Issuer and the Underwriters. The Bonds will be delivered
at the Closing as definitive fully registered bonds in such authorized denominations and registered in such
names as the Underwriters may request in time for their preparation. The Bonds to be delivered at the
Closing will be made available to the Underwriters for checking and packaging in New York, New York,
not later than the day prior to the Closing. After execution by the Issuer, authentication by the Registrar
and Paying Agent and completion of checking and packaging, the Bonds shall be transferred to and held
in safe custody by the Underwriters, or its designated agent on behalf of the Issuer; provided, that the
Issuer shall receive a receipt of safekeeping from the Underwriters or its designated agent, in form
satisfactory to the Issuer. The Issuer shall release or authorize the release of the Bonds at the Closing from
safe custody to the Underwriters upon receipt of payment for the Bonds as described above.
9. Conditions to Closing. The Underwriters have entered into this Bond Purchase
Contract in reliance upon the representations, warranties and agreements of the Issuer contained herein,
and in reliance upon the representations to be contained in the documents and instruments to be delivered
at the Closing and upon the performance by the Issuer of its respective obligations hereunder, both as of
the date hereof and as of the date of the Closing. Accordingly, the Underwriters's obligations under this
Bond Purchase Contract to purchase, to accept delivery of and to pay for the Bonds are conditioned upon
the performance by the Issuer of its obligations to be performed hereunder and under such documents and
instruments at or prior to the Closing, and are also subject to the following additional conditions:
a) The representations of the Issuer contained herein shall be true, complete and
correct on the date hereof and on and as of the date of the Closing, as if made on the date of the
Closing;
(b) At the time of the Closing, the Resolution shall be in full force and effect in
accordance with its terns and shall not have been further amended, modified or supplemented, and
the Official Statement shall not have been supplemented or amended, except in any such case as
may have been agreed to by the Underwriters:
(c) At the time of the Closing, all necessary official action of the Issuer and the other
parties thereto relating to this Bond Purchase Contract, the Official Statement and the Bonds shall
be in full force and effect in accordance with their respective terms and shall not have been
amended, modified or supplemented in any material respect, except in each case as may have been
agreed to by the Underwriters; and
(d) At or prior to the Closing, the Underwriters shall have received copies of each of
the following documents:
(1) The Official Statement and each supplement or amendment, if any,
thereto, executed on behalf of the Issuer by its Chairman of the County Commission
("Chairman") and the County Administrator.
(2) The Resolution certified by the County Clerk under seal as having been
duly adopted and as being in effect, with such supplements or amendments as may have
been agreed to by the Underwriters.
(3) The opinion of Bond Counsel addressed to the Issuer, dated the date of
Closing, in form and substance acceptable to the Underwriters that under existing law,
regulations, judicial decisions and rulings, the interest on the Bonds is excluded from gross
income for federal income tax purposes and does not constitute an item of tax preference
for purposes of the federal alternative minimum tax imposed on individuals and
corporations, accompanied by a supplementary opinion, dated the date of Closing and
addressed to the Underwriters, substantially to the effect that: (a) the Underwriters may
rely upon the opinion of Bond Counsel as if it were addressed to the Underwriters; (b) this
Bond Purelmse Ganirae! mW die BerAs, have been duly sudierized, eneeeied mW deli�eied
by !he 199tter wit! eamikute Yelid, binding and enfereenbleagreements eF die Issuer in
limited by bettkmptey, imeheney er other laws aFfeetin, creditors' riblits generally and
eensidered in a preeeedinj in equity or at low) and are enfifled !a the benefits eF die
Simemenl;—(d) the information in the Official Statement under the headings
"DESCRIPTION OF THE SERIES 1996 BONDS", "SECURITY AND SOURCES OF
PAYMENT", "TAX EXEMPTION", "
FheRIBA " " are
correct statements or summaries of the matters set forth therein end -fairly -present -the
• and (c) the Bonds are exempt from
registration pursuant to the Securities Act of 1933, as amended, and the Resolution is
exempt from qui tetttiens qualification pursuant to the Trust Indenture Act of 1939, as
amended;
(4) An opinion, dated the date of the Closing and addressed to the
Underwriters, of the County Attorney of the Issuer to the effect that (i) the Issuer is a
political subdivision, duly organized and validly existing
under the laws of the State of Florida; (ii) the Issuer has full legal right, power and
authority to enter into this Bond Purchase Contract, to adopt the Resolution, to sell, issue
and deliver the Bonds as provided in this Bond Purchase Contract and to carry out and
consummate the transactions contemplated by this Bond Purchase Contract, the Bonds, the
Resolution, and the Official Statement; (iii) this Bond Purchase Contract has been duly
authorized, executed, and delivered by the Issuer and constitutes a valid, binding and
enforceable agreement of the Issuer in accordance with its terms except to the extent that
the enforceability of the rights and remedies set forth herein may be limited by bankruptcy,
insolvency or other laws affecting creditors' rights generally or general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at law); (iv) the
Issuer has duly authorized, executed, and delivered the Official Statement and has duly
authorized the distribution of the Official Statement; (v) the information in the Official
Statement as to legal matters (excluding tax treatment of interest on the Bonds,-Blue-Sky
and financial and statistical information, as to
which such counsel need not opine) relating to the Issuer, the Act, the Bonds and the
Resolution, is correct in all material respects, as to matters of law and facts relating
thereto, and does not omit any statement, as to matters of law and facts relating thereto,
which, in his opinion, should be included or referred to therein, and, in addition, such
counsel shall state that, based upon her participation in the preparation of the Official
Statement as County Attorney to the Issuer and without having undertaken to determine
independently the accuracy, completeness or fairness of the statements contained in the
Official Statement (except to the extent expressly set forth in this subparagraph (vi)), as
of the date of the Closing nothing has come to his attention causing him to believe that (A)
the Official Statement as of its date contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were made, not
misleading (except for the financial and statistical information contained in the Official
Statement as to all of which no view need be expressed), or (B) the Official Statement (as
supplemented and amended in accordance herewith, if applicable) as of the date of the
Closing contains any untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading (except as aforesaid); (vii) the
Issuer is not in material breach of or material default under any applicable constitutional
provision, law or administrative regulation of the State or the United States or any
applicable judgment or decree, applicable to it and-by which it may be obligated, or any
loan agreement, indenture, bond, note, ordinance, resolution, material agreement or other
material instrument to which the Issuer is a party or to which the Issuer or any of its
property or assets is otherwise subject, applicable to it and by which it may be obligated,
and no event has occurred and is continuing which with the passage of time or the giving
of notice, or both, would constitute a default or event of default under any such
instrument, except in each case as disclosed in the Official Statement; and the execution
and delivery of the Bonds, this Bond Purchase Contract and the adoption of the Resolution
and compliance with the provisions on the Issuer's part contained therein, will not conflict
with or constitute a breach of or default under any constitutional provision, law,
administrative regulation, judgment, decree, loan agreement, indenture, bond, note,
ordinance, resolution, agreement or other instrument to which the Issuer is a party or to
which the Issuer or any of its property or assets is otherwise subject, nor will any such
execution, delivery, adoption or compliance result in the creation or imposition of any
lien, charge or other security interest or encumbrance of any nature whatsoever upon any
of the property or assets of the Issuer or under the terms of any such law, regulation or
instrument, except as expressly provided by the Bonds and the Resolution; (viii) the Issuer
has the right and power under the Act to adopt the Resolution and the Resolution has been
duly and lawfully adopted by the Issuer, is in full force and effect and constitutes the legal,
valid and binding special obligation of the Issuer, enforceable in accordance with its terms,
subject to applicable bankruptcy, insolvency and similar laws affecting creditors' rights
generally and subject, as to enforceability, to general principles of equity (regardless of
whether enforcement is sought in a proceeding in equity or at law), and no other
authorization is required; the Bonds are valid and binding special obligations of the Issuer,
enforceable in accordance with their terms and the terms of the Resolution, subject to
applicable bankruptcy, insolvency and similar laws affecting creditors' rights generally and
subject, as to enforceability, to general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law) and are entitled to the benefits
of the Resolution and the Act; (ix) there is no action, suit, proceeding, inquiry or
investigation to which the Issuer is a party at law or in equity before or by any court,
government agency, public board or body, pending or, to the best of his knowledge,
threatened against or affecting the Issuer, nor, to the best of her knowledge, is there any
basis for any such action, suit, proceeding, inquiry or investigation, wherein an unfavor-
able decision, ruling or finding would have a materially adverse effect upon the
transactions contemplated by the Official Statement, the validity of the Bonds, the
Resolution, or this Bond Purchase Contract, except as described in the Official Statement;
(x) all authorizations, consents, approvals and reviews of governmental bodies or
regulatory authorities then required for the Issuer's, adoption execution or performance
of the Bonds, the Resolution, and this Bond Purchase Contract have been obtained or
effected; and, in addition, she shall give her opinion to the same effect set forth under the
caption "Litigation" in the Official Statement;
(5) An opinion of general counsel of Financial Guaranty Insurance Company,
dated the date of Closing and addressed to the Underwriters, in form and substance
satisfactory to the Underwriters, to the effect that: (i) the Insurer is duly qualified to do
business in the State of Florida, (ii) the Insurer has full corporate power and authority to
execute and deliver the insurance policy for the Bonds (the "Policy") and the Policy has
been duly authorized, executed and delivered by the Insurer and constitutes a legal, valid
and binding obligation of the Insurer enforceable in accordance with its terns, and (iii) the
information contained in the Official Statement under the heading "Municipal Bond
Insurance" is true and correct in all material respects and does not omit any statement
which in his opinion should be stated therein in order to make the statements made therein
in light of the circumstances in which made, not misleading,
(6) An opinion, dated the Date of Closing and addressed to the Issuer and the
Underwriters; (or by providing a Reliance Letter stating the Underwriters can rely on the
opinion addressed to the Issuer as if it was addressed to the Underwriters) of Bryant,
Miller & Olive, P.A., , to the effee! OW the Bonds are no! su�eet to
!he registration requiremetim of the Seetiriiies Ae! of 1933, as emetiiled-awl based upon
their review of the Official Statement as Disclosure Counsel and without having
undertaken to determine independently the accuracy, completeness, or fairness of the
statements contained in the Official Statement, as of the date of Closing nothing has come
to the attention of such counsel causing them to believe that (A) the Official Statement as
of its date contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were trade, not misleading (except for the financial
and statistical information contained in the Official Statement as to which no view need be
expressed), or (B) the Official Statement (as supplemented or amended pursuant to
Subsection (m) of Section 5 hereof, if applicable) as of the date of Closing contained any
untrue statement of a material fact or omits to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances in which
they were made, not misleading (except as aforesaid);
(7) A certificate of the Issuer dated the date of the Closing signed by its
Chairman and County Administrator, in form and substance satisfactory to the
Underwriters, to the effect that (i) the representations of the Issuer contained herein are
true and correct in all material respects as of the date of Closing, as if made on the date
of Closing; (ii) the Issuer has performed all obligations to be performed hereunder as of
the date of Closing; (iii) the Bond Purchase Contract has been duly authorized, executed
and delivered by the Issuer and constitute a valid, binding and enforceable agreement of
the Issuer in accordance with their terms; (iv) the Resolution has been duly and lawfully
adopted by the Issuer, is in full force and effect, has not been modified, amended or
repealed and constitutes a legal, valid and binding special obligation of the Issuer,
enforceable in accordance with its terms subject to applicable bankruptcy, insolvency and
similar laws affecting creditors' rights generally; (v) the Bonds have been duly authorized,
executed and delivered by the Issuer and constitute valid and binding special obligations
of the Issuer, enforceable in accordance with their terms and the terms of the Resolution
subject to applicable bankruptcy, insolvency, and similar laws affecting creditors' rights
generally, are entitled to the benefits and security of the Resolution and the Act and are
payable from and secured by the Pledged Funds; (vi) except as disclosed in the Official
Statement no litigation is pending or threatened (A) to restrain or enjoin the issuance or
delivery of the Bonds, (B) in any way contesting or affecting any authority for the issuance
of the Bonds or the validity of the Bonds, the Resolution, or this Bond Purchase Contract,
(C) in any way contesting the corporate existence or powers of the Issuer, (D) which may
result in any material adverse change in the business, properties, assets or financial
condition of the Issuer, or (F) asserting that the Official Statement contains any untrue
statement of a material fact or omits to state any material fact necessary to make the
statements therein, in light of the circumstances under which they were made not
misleading; (vii) since September 30, 1995, no material and adverse change has occurred
In the financial position of the Issuer except as set forth in or contemplated by the Official
Statement; and (viii) the Nearly Final Official Statement did not, as of its date, and the
Official Statement did not as of its date, and does not as of the date of Closing contain any
untrue statement of a material fact or omit to state a material fact which should be included
therein for the purposes for which the Official Statement is to be used, or which is
necessary in order to make the statements contained therein, in light of the circumstances
in which they were made, not misleading;
(8) Three (3) copies of the Official Statement executed on behalf of the Issuer
by its Chairman and County Administrator.
(9) An insurance policy of the Insurer, insuring payment when due, of all
regularly scheduled payments of principal of and interest on the Bonds of the ("the
"Insurance Policy") Insurer all as contemplated by the Official Statement;
(10) Evidence that Moody's Investors Service has issued a Aaa rating for the
Bonds, that Standard & Poor's Corporation has issued a AAA rating for the Bonds, and
that such ratings are in full force and effect as of the date of Closing;
(11) A certificate executed by the appropriate officer of the Issuer, dated the
date of Closing, satisfactory to Bond Counsel setting forth the facts, estimates and
circumstances which establish that it is not expected that the proceeds of the Bonds will be
used in a manner that would cause the Bonds to be "arbitrage bonds" within the meaning
10
of the Internal Revenue Code of 1986, as amended, and to the best of the knowledge and
belief of such officer, such expectations are reasonable;
(12) Such additional legal opinions, certificates, proceedings, instruments and
other documents as the UWerwdters, Disclosure Counsel or Bond Counsel may
reasonably request to evidence compliance by the Issuer with legal requirements, the truth
and accuracy, as of the time of Closing, of the respective representations of the Issuer
herein contained and the due performance or satisfaction by the Issuer at or prior to such
time of all agreements or undertakings then required to be satisfied by the Issuer.
(13) Evidence that The Chase Manhattan Bank, N.A., New York, New York,
has been approved by the Issuer as Paying Agent.
(14) A Certificate of the Issuer signed by the Administrator and the Utilities
Director stating that (i) the Underwriters can rely on the information in the Official
Statement under the headings "THE SYSTEM" and 'SERIES 1996 PROJECT" as a true,
reasonable, and accurate summary of the Master Water & Wastewater Plan and (H) the
projects being funded with the proceeds of the Series 1996 Bonds are necessary and
accomplish the objectives of the Master Water & Sewer Plan. The Certificate will further
provide a statement to the effect that:
(a) The System is generally in good condition and has been operated
and maintained in accordance with standard utility industry practices, and
provides good, reliable and cost-effective water and sewer service to the
customers of the System;
(b) The System is operated in substantial compliance with current
Federal, State and Local requirements. All regulatory permits necessary
for the operation of a public municipal water and sewer system are current
and in good standing;
(c) The Project is necessary. The proposed capital improvements are
technically sound and conform to proven and industry accepted
engineering practice. The Project will provide for water and sewer
system improvements and expansion to meet Federal, State and Local
regulatory requirements and projected growth -related water demands for
a _ year period;
(d) The proposed capital improvements are or shall be designed in
accordance with accepted engineering standards using proven
conventional technology.
(e) The City's existing management and professional staff are well
qualified and certified to manage, operate, and maintain the System;
(f) It is reasonable to assume that all required regulatory permits
and/or governmental approvals will be obtained in a timely manner for
regulatory compliance and will be obtained prior to construction of the
proposed capital improvements and all necessary operating permits will
be obtained for the completed capital improvements;
(g) No material changes have occurred in the capital improvement
program which will have a negative impact on the cost estimate for
successful completion of the Project:
(h) Proceeds from the Series 1996 Bonds will be sufficient for design,
construction and implementation of the Project;
(i) The useful life of the Project is in excess of the average weighted
average life of the Series 1996 Bonds.
All the opinions, letters, certificates, instruments and other documents mentioned above or
elsewhere in this Bond Purchase Contract shall be deemed to be in compliance with the provisions hereof
only if they are in a form and substance satisfactory to the Underwriters.
10. Underwriters's Right to Cancel. The Underwriters shall have the right to cancel its
obligations to purchase and accept delivery of the Bonds hereunder by notifying the Issuer, in writing or
by -telegram via telecopy, of its election to do so between the date hereof and the Closing if prior to the
Closing:
(a) legislation shall be enacted by the Congress, or recommended to the Congress for
passage by the President of the United States, or favorably reported for passage to either chamber
of the Congress by a committee of such chamber to which such legislation has been referred for
consideration, a decision by a court of the United States or the United States Tax Court shall be
rendered, or a ruling, regulation or official statement (including a press release) by or on behalf
of the Treasury Department of the United States, the Internal Revenue Service or other
governmental agency shall be made or proposed to be made with respect to federal taxation upon
revenues or other income of the general character to be derived by the Issuer or by any similar
body, or upon interest on obligations of the general character of the Bonds, or other action or
events shall have transpired which have the purpose or effect, directly or indirectly, of changing
the federal income tax consequences of any of the transactions contemplated in connection
herewith, which, in the reasonable opinion of the Underwriters and the financial advisor to the
Issuer, materially and adversely affects the market price of the Bonds or the market price generally
of obligations of the general character of the Bonds; or
(b) any legislation, ordinance or regulation shall be enacted or be actively considered
for enactment by any governmental body, department or agency of the State of Florida having
jurisdiction of the subject matter, or a decision by any court of competent jurisdiction within the
State of Florida shall be rendered which, in the reasonable opinion of the Underwriters and
Financial Advisor to the Underwriters, materially and adversely affects the market price of the
Bonds; or
(c) a stop order, ruling, regulation or official statement by or on behalf of the
Securities and Exchange Commission shall be issued or made to the effect that the issuance,
offering or sale of the Bonds, or of obligations of the general character of the Bonds as
contemplated hereby, is subject to registration or qualification under the Securities Act of 1933,
as amended, or the Trust Indenture Act of 1939, as amended, or is in violation of any provision
of either of such acts or the Securities Exchange Act of 1934, as amended; or
(d) any event shall have occurred or shall exist which, in the reasonable opinion of the
Underwriters, either (i) makes untrue or incorrect in any material respect any statement or
information contained in the Official Statement, or (ii) is not reflected in the Official Statement and
should be reflected therein in order to make the statements and information contained therein not
misleading in any material respect; or
a
(e) any amendment to the Official Statement is proposed by the Issuer or deemed
necessary by Bond Counsel or Disclosure Counsel pursuant to Section 4(c) hereof which, in the
opinion of the Underwriters and the financial advisor to the Insurer Issuer, materially adversely
affects the market for the Bonds or the sale, at the contemplated offering prices, by the
Underwriters of the Bonds to be purchased by them.
(f) there shall have occurred any outbreak or escalation of hostilities or other national
or international calamity or crisis or a financial crisis, the effect of such outbreak, calamity or
crisis on the financial markets of the United States being such as, in the reasonable opinion of the
Underwriters, would affect materially and adversely the ability of the Underwriters and the
financial advisor to the Issuer to market the Bonds; or
(g) trading shall be suspended, or new or additional trading or loan restrictions shall
be imposed by the New York Stock Exchange or other national securities exchange or
governmental authority with respect to obligations of the general character of the Bonds or a
general banking moratorium shall be declared by federal, Florida or New York authorities;
(h) any litigation shall be instituted, pending or threatened to restrain or enjoin the
issuance or sale of the Bonds or in any way protesting or affecting any authority for or the validity
of the Bonds, the Resolution, the Insurance Policy, this Bond Purchase Contract or the existence
or powers of the Issuer; or
(i) there shall have occurred a default with respect to the debt obligations of, or the
institution of proceedings under any federal bankruptcy laws by or against, any state of the United
States or any city located in the United States having a population of over 500,000, the effect of
which, in the opinion of the Underwriters and the financial advisor to the Issuer, would materially
and adversely affect the ability of the Underwriters to market the Bonds; or
0) any rating of the Bonds shall have been downgraded or withdrawn by a national
rating service, which materially adversely affects the market for the Bonds or the sale, at the
contemplated offering prices, by the Underwriters of the Bonds to be purchased by them; or any
proceeding shall be pending or threatened by the Securities and Exchange Commission against the
Issuer; or
(k) the Insurer shall inform the Issuer or the Underwriters that it will not insure
payment of the principal of or interest on the Bonds as described in the Official Statement.
11. Failure to Satisfy Conditions• Waiver of Conditions. If the Issuer shall be unable to
satisfy the conditions to the obligations of the Underwriters contained in this Bond Purchase Contract, or
if the obligations of the Underwriters to purchase and accept delivery of the Bonds shall be terminated for
any reason permitted by this Bond Purchase Contract, this Bond Purchase Contract shall terminate and
neither the Underwriters nor the Issuer shall be under further obligation hereunder. The Underwriters may,
in its discretion, waive any one or more of the conditions imposed by this Bond Purchase Contract for the
protection of the Underwriters and proceed with the Closing.
12. NgWicadon by Issuer. During the offering period or for a period of not exceeding
sixty (60) days after the Closing, the Issuer will (a) not adopt any amendment of or supplement to the
Official Statement to which after having been furnished with a copy, the Underwriters or its counsel shall
reasonably object in writing and (b) notify the Underwriters of any matter which shall cause the Official
Statement to contain any untrue statement of a material fact or omit to state a material fact that should be
stated therein or that is necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading.
13. Survival of Representations. and A91MUM U. All representations and agreements
of the Issuer set forth in or made pursuant to this Bond Purchase Contract shall remain operative and in
full force and effect, regardless of any investigations made by or on behalf of the Underwriters and shall
survive the delivery of and payment for the Bonds.
14. EIU= .
(a) The Underwriters shall be under no obligation to pay, and the Issuer shall pay, any
expense incident to the performance of the Issuer's obligations hereunder including, but not limited
to: (i) the cost of preparation, printing, delivery and distribution of the Resolution and the Official
Statement; (ii) the cost of preparation and printing of the Bonds; (iii) the fees and disbursements
of Bond Counsel and Disclosure Counsel, and, if any, of the County Attorney to the Issuer, (iv)
the fees and disbursements of Berger, Harris, Toombs, Elam & McAlpin, Vero Beach, Florida for
their services as certified public accountant for the Issuer; (v) the fees and disbursements of any
other accountants, and other experts, consultants or advisors retained by the Issuer; (vi) fees for
bond ratings; (vii) bond insurance premiums; and any other fees or costs in connection with the
issuance of the Bonds which have been authorized or are otherwise customarily and reasonably
attributable to the Issuer, except as provided in (b) below.
(b) The Underwriters shall pay, (i) the cost of preparation of this Bond Purchase
Contract; (ii) all advertising expenses and Blue Sky filing fees in connection with the public
offering of the Bonds; and (iii) all other expenses incurred by them or any of them in connection
with the public offering of the Bonds.
15. Successors & A&*u. This Bond Purchase Contract shall inure to the benefit of and be
binding upon the Issuer and the Underwriters and their respective successors. Nothing herein is intended
or shall be construed to give any person, firm or corporation, other than the parties hereto and their
respective successors and assigns, any legal or equitable right, remedy or claim under or in respect of this
Bond Purchase Contract or any provisions herein contained. This Bond Purchase Contract and all
conditions and provisions hereof are intended to be for the sole and exclusive benefit of the parties hereto
and their respective successors and assigns, and for the benefit of no other person, firm or a corporation.
No Underwriters of the Bonds from any of the Underwriters or other persons or entity shall be deemed to
be a successor merely by reason of such purchase.
16. Notices. Any notice or other communication to be given to the Issuer under this
Bond Purchase Contract may be given by delivering the same in writing at the address set forth above, and
any notice or other communication to be given to the Underwriters under this Bond Purchase Contract may
be given by delivering the same in writing to William R. Hough & Co., 100 Second Avenue South, Suite
800, St. Petersburg, Florida 33701, Attention: Edwin M. Bulleit.
17. Governing Law and Venues. This Bond Purchase Contract shall be governed by and
construed in accordance with the laws of the State of Florida. The venue for the purpose of litigation
shall be in indim Rive. Pinellas County, Florida.
18. Effective nate. This Bond Purchase Contract shall become effective upon your
mutual acceptance hereof.
19. CMMUDUU, This Bond Purchase Contract may be executed in several counterparts,
each of which shall be regarded as an original and all of which shall constitute one and the same
document.
20• LICAQW. The headings of the sections of this Bond Purchase Contract are
inserted for convenience only and shall not be deemed to be a part hereof.
14
Very truly yours,
WILLIAM R. HOUGH & CO.
SMITH BARNEY INC.
By:
Senior Vice President
Accepted and agreed to as of the date first above written
INDIAN RIVER COUNTY, FLORIDA
By:
Chairman
(SEAL)
Attest:
Title: _Counly Clerk
EXHIBIT A
$43,000,000
INDIAN RIVER COUNTY, FLORIDA
WATER AND SEWER REVENUE BONDS, SERIES 1996
DISCLOSURE STATEMENT
County Commission of the
Indian River County
Indian River, Florida
Ladies and Gentlemen:
In connection with the proposed issuance by the Indian River County, Florida (the "Issuer") of $
,000 principal amount of the issue of bonds referred to above (the "Bonds"), William R. Hough &
Co. and Smith Barney, Inc. (the "Underwriters"), are underwriting a public offering of the Bonds.
Arrangements for underwriting the Bonds will include a Bond Purchase Contract between the Issuer and
the Underwriters.
The purpose of this letter is to furnish, pursuant to the provisions of Section 218.385(6), Florida
Statutes, as amended, certain information in respect to the arrangement contemplated for the underwriting
of the Bonds as follows:
(a) The nature and estimated amount of expenses to be incurred by the Underwriters and paid
by the Underwriters in connection with the purchase and reoffering of the Bonds are set forth on Schedule
I attached hereto.
(b) No person has entered into an understanding with the Underwriters, or to the knowledge
of the Underwriters, with the Issuer for any paid or promised compensation or valuable consideration,
directly or indirectly, expressly or implied, to act solely as an intermediary between the Issuer and the
Underwriters or to exercise or attempt to exercise any influence to effect any transaction in the purchase
of the Bonds.
(c) The amount of underwriting spread, including the management fee, expected to be realized
is as follows:
Per $1,000
Bod
Takedown $
Underwriters' Expenses y
Total Underwriting Spread $.
(d) No other fee, bonus or other compensation is estimated to be paid by the Underwriters in
connection with the issuance of the Bonds to any person not regularly employed or retained by the
Underwriters (including any "finder", as defined in Section 218.386(1)(a), Florida Statutes ), except as
specifically enumerated as expenses to be incurred and paid by the Underwriters, as set forth in Schedule
I attached hereto.
(e) The name and address of the Underwriters is set forth below:
William R. Hough & Co. Smith Barney Inc.
100 Second Avenue South, Suite 800 625 N. Flagler Dr., 8th Floor
St. Petersburg, Florida 33701 West Palm Beach, Florida 33401
(f) The Issuer is proposing to issue $ of debt or obligations for the purpose of
financing the cost of certain improvements and additions to the Water and Sewer System. This debt or
obligation is expected to be repaid over a period of 30 years. At a forecasted true interest cost rate of _
%, total interest paid over the life of the debt or obligation will be $
(g) The source of repayment or security for the proposed obligations is the Pledged Funds (as
defused in the Resolution). Authorizing this debt or obligation will not result in any material adverse change
in the amount of Issuer moneys available to finance the other services of the Issuer during the time the
proposed obligations will be outstanding.
We understand that you do not require any further disclosure from the Underwriters, pursuant to
Section 218.385(6), Florida Statutes,.
Very truly yours,
WILLIAM R. HOUGH & CO.
By:
Senior Vice President
SCHEDULE I
Underwriters' Discount Per Bond
Management Fee $
Average Takedown
Underwriting Risk
Expenses:
PSA/CUSIP
Fed Funds/Day Loan
Travel, Misc.,
Communication
Clearance
Total Expenses
TOTAL DISCOUNT S
EXHIBIT B
MATURITIES, PRINCIPAL AMOUNTS,
INTEREST RATES AND PRICES OR YIELDS+
$ Serial Bonds
Maturity
(September 1)
Principal Amount
Interest Rate
Yield
Price
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
$ , _ %. Term Bond due September 1, _, Price %
$ , _%. Term Bond due September 1, _, Price
Term Bond due September 1, _, Price %
(plus accrued interest from March 1, 1996)
EXHIBIT C
REDEMPTION PROVISIONS
Optional Redemption. The 1996 Bonds maturing prior to September 1, _, shall not be
subject to redemption prior to their respective dates of maturity. The 1996 Bonds stated to mature on or
after September 1, _ are subject to redemption prior to their stated dates of maturity, at the option of the
County in whole or from time to time in part on September 1, , or on any date thereafter, at the
respective redemption price (expressed as a percentage of the principal amount thereof as set forth in the
table below) plus accrued interest to the redemption date.
Redemption Period
(Both Dates Inclusive) Redemption Price
September 1, through August 31, _ _%
September 1, through August 31, _ _%
September 1, _ and thereafter _%
If fewer than all of the Series 1996 Benda re Bonds are to be so redeemed, the County may select
the maturity or maturities to be redeemed. If fewer than all of the Series 1996 Bonds of any particular
maturity are to be redeemed, the Bond Registrar will select by lot the particular Series 1996 Bonds or
portions of Series 1996 Bonds of such maturity to be redeemed. The portion of any Series 1996 Bond of
a denomination of more than $5,000 to be redeemed will be in the principal amount of $5,000 or an
integral multiple of that sum.
Mandatory Redemption. The 1996 Bonds in pan maturing on September 1, _ are subject
to mandatory redemption prior to maturity in pan (including portions of Bonds), at a price equal to 100%
of the principal amount thereof, plus interest accrued thereon on September 1 in the years and amounts set
forth below:
Xyl: Principal Amount
The 1996 Bonds in part maturing on September 1, _ are subject to mandatory redemption prior
to maturity in part (including portions of Bonds), at a price equal to 100% of the principal amount thereof,
plus interest accrued thereon on September 1 in the years and amounts set forth below:
X= Principal Amount
The 1996 Bonds in part maturing on September 1, _ are subject to mandatory redemption prior
to maturity in part (including portions of Bonds), at a price equal to 100% of the principal amount thereof,
plus interest accrued thereon on September 1 in the years and amounts set forth below:
XCU Principal Amount
The County may apply moneys in the Bond Amortization Account to the purchase of Series 1996
Bonds subject to mandatory redemption (the "Series 1996 Term Bonds") at prices not greater than par plus
accrued interest and apply the principal amount of any Series 1996 Term bond,; so purchased as a credit
against and in fulfillment of amortization installments required on the Series 1996 Term Bonds of the same
maturity. If the County shall purchase or call for redemption in any year Series 1996 Term Bonds in
excess of the amortization installment requirement for such year, such excess of Series 1996 Term Bonds
so purchased or redeemed shall be eredtied credited against subsequent mandatory redemption of the Series
1996 Bonds at such times and amounts as the County may direct. To the extent the County's obligation
to make installments in a particular year is fulfilled through such purchases, the likelihood of redemption
through such installments of any Registered Owner's Series 1996 Bonds of the maturity so purchased will
be reduced for such year.
HydillffiT B
G()N: nNui?4n r 116G1 9SURE eERTt reATE
�ro�r.�D QlrL C r CIRR"L'
Gafflir4 an diskette from HMO
C.'"R'I'1')< R E
SUMMARY
OF GONTWNG DIGG1 96URE GE �TiL� IG TE
� O�DlI�CD VO�TlrCCGic'1"!i"!C}'lTl'
Benefleial Owners of the Bends
9efiinkiens
the-felElewing nieQ�ngs►
n n
and in erder !a assist the PaiNeipating Undef writers in eenVlying with
,
fer to dispage
fdireedy er inditeetly,
@F ownetship of-,
nominees,
n
,
or (b) as iresied as !he owner ef any Bends fer4edereln
n n
n
with shp RINIP *N
n n
"RUle"
ean any of the erigijaj underwriteis @F the Bends required-w-eentloy
"State" AM!
»Sto
men the State of Florida.
»
(a) The lostier
eenvnenelr4
Amm' Report
that the emdited
Anottal Repert
available by
(b) Ne! later
to the 19issentinmien
and dte Boole
(e) Re 9-isseminfian
sheil or she!! eause the Disserninatien
itme 1, 1997 with the repart for the 1995
whieh is eamisien! with the requirements
fimneial statements of the issuer may
and later then the date required above
the Doe. if the isatter's fi9ft! year ehanges,
t�m fifteen (i5) Bushm Days pier te
Agent (if ether hlmn the 199tter).
Repasitery, if any, in substantially the
Agent sh&H-
Agent te, not later them 1 OF .-Sell )eel.
1996 Hiseal Year, previde ie eeeh Repeskery-th
ef Seetion 4 of this Disclosure Gertifiest&.-The
be submitied SeForitiely frentih&4*Mne&-eF-the
for dte filing eF ibe Ardittal Repert if they are no
it sheH give notiee eF stieh change in the twm
said ditie, the issuer she!! provide the Ammal Report
if the issuer is timble !a provide le the Repesi tat ies
form susehed as 69thibi! Ar
(i) determine
(H) if the
emd lisfin
1. Re atidiied
fiml Offieiel
Amml Repert
eseh year prier ie the doe for praviding
Disseinimfien kSew is other then the issuer,
all the Repasheries is whieh ii wag provided.
fineneial statements of the issuer for
Stmement, and the audited firaneial statements
when they become available.
the Ammal Repert !he nitme and address of eneh
File a repert with the issuer eeptifying th
dte prier fiseal year, prepared in eeeardenee with
!hall be filed 'n the some mantier as ihe
the headings,
vaiwm
»Witer and Sewer »» Indian
»»
River eetinty DeFf"ne"! Of Utility Semiees4HO
2. non
3. Madifiesfiens
S. defemme.
6. refine-ehnge3-
payment related defaults.
to PiShis of Bondholders.
.
submitefien
11. release,
" FOSSible
RPF'iesbie
deseribed
of the efedi! er liquidity
substitution or sale ef FfCPerlY
determine of sueh eyent would
federal mcurkies laws, the
h submefiera (ft)(4) and (5)
.myiders or their failure ie perferin.
Bends.10.
seettrin, repsymen! of the
be rnmerial tinder RPFI*ettble federal seeurifies laws.
199tter she!! FreMlItlY File a nefiee of stieh oeetirrenee widt
need no! begiven under !his subseetion enlo earlier ftn dte netiee
seetien-s(f).
Amendment,
Netwidwmift
Waiyw
my adher provision eF
this Diselestire eerimfiesie, the issuer may amend this Diselesure
5(s),'
40 This redlined draft, generated by CompareRite - The Instant Redliner, shows the differences between -
original document : H:\PF\AGREEMEN\INDRVR96.WS
and revised document: H:\PF\AGREEMEN\IND-RVR\96-WS,BPA
CompareRite found 54 change(s) in the text
CompareRite found 0 change(s) in the notes
Deletions appear as struck -through text
Additions appear as "redlined" text
./
EXHIBIT B
COMMENT FOR IWNICIPAL BOND INSMUNCE AM
DEBT SERVICE RESERVE FUND POLICY
FimuivialOnmutt hwirmur
�:,,,,,,,�,, FGIC.
115 Brt III11way
Vw Turk. X1 10N)
(212):112-3UH)
(R(N)) :1-52401
AGECapitalCawny
Commitment
For Mmiicipal Bond hisurancc
Issuer: Indian River County,
Florida
Bonds
Insured: Water and Sewer
Revenue Bonds, Series 1996, and
and any future bonds on
parity therewith issued under the
Resolution, as amended and
supplemented, if secured by the
common debt service reserve fund
Date of Commitment:
March 4, 1996
Expiration Date:
May 4, 1996*
Premium: 1.80% of Maximum
Amount of Policy
Maximum Amount: The Reserve
Account requirement for the
Series 1996 Bonds, and the
outstanding parity bonds.
FINANCIAL GUARANTY INSURANCE COMPANY
("Financial Guaranty")
A Stock Insurance Company
hereby commits to issue a Municipal Bond Debt Service Reserve Fund
Policy (the "Reserve Policy"), in the form attached hereto as Exhibit
A, relating to the above-described debt obligations (the "Bonds"),
subject to the terms and conditions contained herein or added hereto.
To keep this Commitment in effect after the expiration date set forth
above, a request for renewal must be submitted to Financial Guaranty
prior to such expiration date. Financial Guaranty reserves the right
to refuse wholly or in part to grant a renewal.
Subject to written acceptance of this Commitment being furnished
to Financial Guaranty not later than March 11, 1996.
Page 1 of 5
Financial 0wranty In.urmur
Conyuay
THE MUNICIPAL BOND DEBT SERVICE RESERVE FUND POLICY SHALL BE
ISSUED IF THE FOLLOWING CONDITIONS ARE SATISFIED:
1. The documents to be executed and delivered in connection
with the issuance and sale of the Series 1996 Bonds
shall not contain any untrue or misleading statement of
a material fact and shall not fail to state a material
fact necessary in order to make the information
contained therein not misleading.
2. No event shall occur which would permit any purchaser of
the Series 1996 Bonds, otherwise required, not to be
required to purchase the Bonds on the date scheduled for
the issuance and delivery thereof.
3. There shall be no material change in or affecting the
Series 1996 Bonds (including, without limitation, the
security for the Series 1996 Bonds) or the financing
documents or the official statement (or any similar
disclosure documents) to be executed and delivered in
connection with the issuance and sale of the Bonds from
the descriptions or forms thereof approved by Financial
Guaranty.
4. The Series 1996 Bonds shall contain no reference to
Financial Guaranty, the Reserve Policy or the reserve
fund insurance evidenced thereby except as may be
approved by Financial Guaranty.
5. Financial Guaranty shall be provided with:
(a) Executed copies of all financing documents, the
official statement (or any similar disclosure
document), and all Series 1996 Bond documentation
evidencing the Issuer's ability and intent to
comply with the Internal Revenue Code of 1986, as
amended (if in the opinion of bond counsel
(described below, as amended) on-going compliance
would be necessary to maintain the exemption from
federal income taxation of interest on the Bonds),
which shall be in form and substance acceptable to
Financial Guaranty, and the various legal opinions
delivered in connection with the issuance and sale
of the Bonds, including, without limitation, the
unqualified approving opinion of bond counsel
rendered by a law firm acceptable to Financial
Guaranty, which opinion shall include a statement
to the effect that the interest on the Bonds is
excludable from gross income for federal income tax
purposes under the Internal Revenue Code of 1986,
as amended.
Pane 2 .)f 5
Financial Guarana• Insurmirr
Cutupauc
(b) A letter from bond counsel addressed to Financial
Guaranty to the effect that Financial Guaranty may
rely on the approving opinion of bond counsel as if
such opinion were addressed to Financial Guaranty.
(c) An opinion of bond counsel, addressed to and in
form and substance satisfactory to Financial
Guaranty, as to the due authorization, validity and
enforceability of the Resolution, as amended and
supplemented.
(d) Evidence of wire transfer in Federal funds in an
amount equal to the insurance premium, unless
alternative arrangements for the payment of such
amount acceptable to Financial Guaranty have been
made prior to the delivery date of the Reserve
Policy.
6. The applicable supplement to the Resolution, as amended
and supplemented (herein after called the "Authorizing
Document") shall include the following terms and
conditions:
(a) The flow of funds shall be revised to provide that
the Issuer's repayment of any draws under the
Reserve Policy and related reasonable expenses
incurred by Financial Guaranty (together with
interest thereon at a rate equal to the lower of
(i) the prime rate of Morgan Guaranty Trust Company
of New York in effect from time to time plus 2% per
annum and (ii) the highest rate permitted by law)
shall enjoy the same priority as the obligation to
maintain and refill the reserve fund. Repayment of
draws, expenses and accrued interest (collectively,
"Policy Costs") shall commence in the first month
following each draw, and each such monthly payment
shall be in an amount at least equal to 1/12 of the
aggregate of Policy Costs related to such draw. If
and +*o the extent that cash has also been deposited
in the reserve fund, all such cash shall be used
(or investments purchased with such cash shall be
liquidated and the proceeds applied as required)
prior to any drawing under the Reserve Policy, and
repayment of any Policy Costs shall be made prior
to replenishment of any such cash amounts. If, in
addition to the Reserve Policy, any other reserve
fund substitute instrument ("Additional Reserve
Policy") is provided, drawings under the Reserve
Policy and any such Additional Reserve Policy, and
repayment of Policy Costs and reimbursement of
amounts due under the Additional Reserve Policy,
shall be made on a pro rata basis (calculated by
reference to the Maximum Amounts available
nacre 3 .)f 5
Financial Guamwq hwirmur
Congauy
thereunder) after applying all available cash in
the reserve fund and prior to replenishment of any
such cash draws, respectively.
(b) If the Issuer shall fail to repay any Policy Costs
in accordance with the requirements of Paragraph
6(a) hereof, Financial Guaranty shall be entitled
to exercise any and all remedies available at law
or under the Authorizing Document other than (i)
acceleration of the metiirity of the Bonds or (ii)
remedies which would adversely affect Bondholders.
(c) The Authorizing Document shall not be discharged
until all Policy Costs owing to Financial Guaranty
shall have been paid in full.
(d) As security for the Issuer's repayment obligations
with respect to the Reserve Policy, Financial
Guaranty shall be granted a security interest
(subordinate only to that of the Bondholders) in
all revenues and collateral pledged as security for
the Bonds.
(e) The additional bonds test and the rate covenant in
the Authorizing Document shall expressly provide
for at least one times coverage of the Issuer's
obligations with respect to repayment of Policy
Costs then due and owing. Furthermore, no
additional bonds may be issued without Financial
Guaranty's prior written consent if any Policy
Costs are past due and owing to Financial Guaranty.
(f) The Authorizing Document shall require the Trustee
to ascertain the necessity for a claim upon the
Reserve Policy and to provide notice to Financial
Guaranty in accordance with the terms of the
Reserve Policy at least two business days prior to
each interest payment date.
(g) The Authorizing Document shall not be modified or
amended without the prior written consent of
Financial Guaranty.
(h) Financial Guaranty shall be provided with written
notice of the resignation or removal of the Trustee
and the appointment of a successor thereto and of
the issuance of additional indebtedness of the
Issuer at 115 Broadway, New York, New York 10006
Attention: Managing Counsel.
(i) All revisions which are required to be made to the
Authorizing Document pursuant to Financial
n,,Re I of 5
Financial Gunman• Insurance
Cunipum
Guaranty's commitment letter, dated March 4, 1996
relating to the insurance of the Series 1996 Bonds.
7. No policy of municipal bond insurance other than a
policy issued by Financial Guaranty shall be provided as
security for the payment of principal and interest on
the Bonds.
8. The Reserve Policy shall expire on the final maturity
date of the Series 1996 Bonds.
9. Prior to delivery of the Reserve Policy, the Issuer
shall deliver to Financial Guaranty an executed Debt
Service Reserve Fund Policy Agreement in substantially
the form of Exhibit B hereto (the "Agreement") and an
opinion of counsel to the Issuer in form and substance
satisfactory to Financial Guaranty as to the due
authorization, validity and enforceability of the
Agreement.
10. Any official statement or similar disclosure document
relating to the Bonds Insured shall contain only (i) the
language included in Exhibit C hereto and (ii) such
other references to Financial Guaranty and the Reserve
Policy as we shall supply or approve.
11. Promptly after the issuance of the Reserve Policy,
Financial Guaranty shall receive a completed set of
executed documents.
Kathleen M. Evers
Senior Analyst
To keep this commitment in effect to the Expiration Date set
forth on the first page, Financial Guaranty must receive by
March 11, 1996 a duplicate of this Commitment executed by an
appropriate officer of the Indian River County, Florida.
Pa,7e 5 of 5
I uum� ial l;u:u�im� lu�uruw �•
The undersigned agrees that if the reserve fund requirement
for the Bonds is met in whole or in part by a surety bond,
letter of credit or insurance policy, such reserve fund credit
instrument shall be a Reserve Policy provided by Financial
Guaranty in accordance with the terms of this Commitment.
Accepted as of `)i/,(h 9 , 1996 by the Indian River County,
Florida.
BY:�I.11 )JJl�J1,
TIRET,)A? Jf !1 ANFi.'/yn:6li
Arn) UvG rl
EXHIBIT A
Financial Guaranty Insurance Company
115 Broadway
New York, New York 10006
(212) 312-3000
(800) 352-0001
Municipal Bond Debt Service
Reserve rand Policy
Issuer:
Policy Number:
Control Number:
Bonds: Premium:
I ) Bonds issued (under) (in
accordance with) [ ) Maximum Amount:
Resolution, as amended and,
supplemented adopted Termination Date:
Paying Agent:
Financial Guaranty Insurance Company ("Financial Guaranty"), a New
York stock insurance company, in consideration of the payment of the
premium and subject to the terms of this Policy, hereby
unconditionally and irrevocably agrees to pay the paying agent named
above or its successor, as paying agent for the Bonds (the "Paying
Agent"), for the benefit of Bondholders, that portion (not: to exceed
the Maximum Amount set forth above) of the amount required to pay
principal and interest (but not any prepayment premium) on the Bonds
which shall become Due for Payment but shall be unpaid by reason of
Nonpayment by the Issuer. No payment shall be due hereunder for any
event of Nonpayment that occurs after the Termination Date set forth
above.
Financial Guaranty will make such payment to the Paying Agent on the
date such principal or interest becomes Due for Payment or on the
Business Day next following the day on which Financial Guaranty shall.
have received Notice of Nonpayment, whichever is later. Upon such
disbursement, Financial Guaranty shall become entitled to
reimbursement therefor (together with interest thereon) all as
provided in the Debt Service Reserve Fund Policy Agreement between the
.Issuer and Financial Guaranty dated as of the Effective Date of this
Policy. The Maximum Amount shall be automatically reinstated when and
to the extent that the Issuer repays amounts disbursed hereunder, but
shall not be reinstated to the extent of amounts received by Financial
Guaranty constituting interest on amounts disbursed to the Paying
Agent pursuant to this Policy. Financial Guaranty shall provide
Notice to the Paying Agent of any reinstatement of any portion of th(r
Maximum Amount within one Business Lay of such reinstatement.
Form 90m
Page 1 of 2
Financial Guaranty Insurance Company
115 Broadway
New York, New York 10006
(212) 312-3000
(800) 352- 000 1
Municipal Bond Debt Service
Reserve Fund Policy
This Policy is non -cancellable for any reason, including the failure
of the Issuer to reimburse Financial Guaranty for any payment made
hereunder.
As used herein, the term "Bondholder" means, as to a particular Bond,
the person other than the Issuer who, at the time of Nonpayment, is
entitled under the terms of such Bond to payment thereof. "Due for
Payment" means, when referring to the principal of a Bond, the stated
maturity date thereof or the date on which the same shall have been
duly called for mandatory sinking fund redemption and does not refer
to any earlier date on which payment is due by reason of call for
redemption (other than by mandatory sinking fund redemption),
acceleration or other advancement of maturity and means, when
referring to interest on a Bond, the stated date for payment of
interest. "Nonpayment" in respect of a Bond means the failure of the
Issuer to have provided sufficient funds to the Paying Agent for
payment :n full of all principal and interest Due for Payment on such
Bond and includes any payment of principal or interest made to a
Bondholder by or on behalf of the issuer of such Bond which has been
recovered from such Bondholder pursuant to the United States
Bankruptcy Code by a trustee in bankruptcy in accordance with a final,
nonappealable order of a court having competent jurisdiction.
"Notice" means telephonic or telegraphic notice, subsequently
confirmed in writing, or written notice by registered or certified
mail, from the Paying Agent for the Bonds to Financial Guaranty or
from Financial Guaranty to the Paying Agent, as the case may be.
"Business Day" means any day other than a Saturday, Sunday or a day oto
which the Paying Agent is authorized by law to remain closed.
In Witness Whereof, Financial Guaranty has caused this Policy to he
affixed with its corporate seal and to be signed by its duly
authorized officer in facsimile to become effective and hindinq upon
Financia'_ Guaranty by virtue of the countersignature of its duly
authorized representative.
President Authorized Repre:ientat.ive
Effective. Date:
Form 901.A
Page 2 of 2
e��
Finam ial Guaranty In.unuur
Gumpam
EXHIBIT B
Page B-1
DEBT SERVICE RESERVE FUND POLICY AGREEIENT
AGREEMENT, dated as of 19 , by and
between the (the "Issuer"),
and FINANCIAL GUARANTY INSURANCE COMPANY (the "Insurer").
In consideration of the issuance by the Insurer of its
Municipal Bond Debt Service Reserve Fund Policy (the "Reserve
Policy") with respect to the Issuer's
Bonds, Series (the "Series Bonds") issued under
(authorizing document] dated , 19 (the
"Authorizing Document") and the Issuer's payment to the Insurer
of the insurance premium for the Reserve Policy, the Insurer and
the Issuer hereby covenant and agree as follows:
1. Upon any payment by the Insurer under the Reserve
Policy, the Insurer shall furnish to the Issuer written
instructions as to the manner in which repayment of
amounts owed to the Insurer as a result of such payment
shall be made.
2. The Issuer shall repay the Insurer the principal amount
of any draws under the Reserve Policy and related
reasonable expenses incurred by the Insurer and shall
pay interest thereon at a rate equal to the lower of
(i) the prime rate of Morgan Guaranty Trust Company of
New York in effect from time to time plus 2% per annum
and (ii) the highest rate permitted by law.
3. Repayment of draws, expenses and the interest thereon
(collectively, "Policy Costs") shall enjoy the same
priority as the obligation to maintain and refill the
reserve fund.
4. Payment of Policy Costs shall commence in the first
month following each draw, and each such monthly
payment shall be in an amount at least equal to 1/12th
of the aggregate of Policy Costs related to such draw.
5. Amounts paid to the Insurer shall be credited first to
interest due under the Reserve Policy and hereunder,
then to the expenses due hereunder and then to
principal due under the Reserve Policy and hereunder.
As and to the extent that payments are made to the
Insurer on account of principal due under the Reserve
Policy and hereunder, the coverage under the Reserve
Policy will be increased by a like amount.
Financial Omnmi% In,urance
Campuny
Page B-2
6. If the Issuer shall fail to repay any Policy Costs in
accordance with the requirements of the Authorizing
Document and this Agreement, Financial Guaranty shall
be entitled to exercise any and all remedies available
at law or under the Authorizing Document other than (i)
acceleration of the maturity of the Bonds or (ii)
remedies which would adversely affect Bondholder,;.
7. The Issuer shall ascertain the necessity for a claim
upon the Policy and provide notice to the Insurer in
accordance with the terms of the Reserve Policy at
least two business days prior to each date upon which
interest or principal is due on the Series Bonds.
8. All cash and investments in the reserve fund shall be
utilized for making required transfers to the debt
service fund for payment of debt service on the Series
Bonds before making any draws on any alternative
credit instrument. Repayment of any Policy Costs shall
be made prior to replenishment of any such cash
amounts. Draws on all alternative credit instruments
on which there is available coverage shall be made on a
pro rata basis (calculated by reference to coverage
then available under each such alternative credit
instrument) after applying available cash and
investments in the reserve fund. Repayment of Policy
Costs and reimbursement of amounts with respect to
alternative credit instruments shall be made on a pro
rata basis (calculated by reference to the coverage
then available under each such alternative credit
instrument) prior to replenishment of any cash draws on
the reserve fund.
9. The Authorizing Document shall not be modified or
amended without the prior written consent of the Bond
Insurer.
10. The Authorizing Document shall not be discharged until
all Policy Costs owing to Financial Guaranty shall have
been paid in full.
11. As security for the Issuer's repayment obligations with
respect to the Reserve Policy, Financial Guaranty shall
be granted a security interest (subordinate only to
that of the Bondholders) in all revenues and collateral
pledged as security for the Bonds.
12. The [rate covenant] and [additional bonds test] in the
Authorizing Document shall be calculated with at least
one times coverage of the Issuer's obligations with
respect to repayment of Policy Costs then due and
Financial Umninty In.uranrr
Compnm
Page B-3
owing. Furthermore, no additional bonds may be issued
under the Authorizing Document without Financial
Guaranty's prior written consent if any Policy Costs
are past due and owing to Financial Guaranty.
13. The Issuer shall provide Financial Guaranty with the
following information:
(i) Budget for each year and annual audited financial
statements, within .].e days after the end of its
fiscal year; /60
(ii) Official statement or similar disclosure
document, if any, prepared in connection with the
issuance of additional debt;
(iii) Notice of the redemption, other than mandatory
sinking fund redemption, of any of the above -
referenced Bonds;
(iv) Such additional information as Financial Guaranty
may reasonably request from time to time; and
A epani fib repr-tfFig iequir@$hentIS-815-
14. Notices to the Insurer shall be sent to the following
address (or such other address as the Insurer may
designate in writing): Financial Guaranty Insurance
Company, 115 Broadway, New York, New York 10006
Attention: Managing Counsel.
15. This Agreement may be executed in counterparts, each of
which alone and all of which together shall be deemed
one original Agreement.
16. If any one or more of the agreements, provisions or
terms of this Agreement shall be for any reason
whatsoever held invalid, then such agreements,
provisions or terms shall be deemed severable from the
remaining agreements, provisions or terms of this
Agreement and shall in no way affect the validity or
enforceability of the other provisions of this
Agreement.
17. All capitalized terms used herein and not otherwise
defined shall have the meanings ascribed to them in the
Authorizing Document.
Fiu"m•iul Guarani% In.urmice
Cumpum
EXHIBIT C
Page C-1
Disclosure language for inclusion in Official Statement, if any
("Bonds" means all Bonds outstanding under the Resolution, as
amended and supplemented)
Debt Service Reserve Fund Policy
Concurrently with the issuance of the Series 199G Bonds,
Financial Guaranty will issue its Municipal Bond Debt Service
Reserve Fund Policy (the "Reserve Policy"). The Reserve Policy
unconditionally guarantees the payment of that portion of the
principal of and interest on the Outstanding Parity Lien Bonds
which has become due for payment, but shall be unpaid by reason
of nonpayment by the Issuer, provided that the aggregate amount
paid under the Reserve Policy may not exceed the maximum amount
set forth in the Reserve Policy, which maximum amount represents
maximum annual debt service on the Bonds. Financial Guaranty
will make such payments to the paying agent (the "Paying Agent")
for the Bonds on the later of the date on which such principal
and interest is due or on the business day next following the day
on which Financial Guaranty shall have received telephonic or
telegraphic notice subsequently confirmed in writing or written
notice by registered or certified mail from the Paying Agent of
the nonpayment of such amount by the Issuer. The term
''nonpayment" in respect of a Bond includes any payment of
principal or interest made to an owner of a Bond which has been
recovered from such owner pursuant to the United States
Bankruptcy Code by a trustee in bankruptcy in accordance with a
final nonappealable order of a court having competent
jurisdiction.
The Reserve Policy is non -cancellable and the premium will be
fully paid at the time of delivery of the Series 1996 Bonds. The
Reserve Policy covers failure to pay principal of the Bonds on
their respective stated maturity dates, or dates on which the
same shall have been called for mandatory sinking fund
redemption, and not on any other date on which the Bonds may have
been accelerated, and covers the failure to pay an installment of
interest on the stated date for its payment. The Reserve Policy
shall terminate on the earlier of the final maturity date of the
Bonds and the date on which Bonds are no longer outstanding under
the Resolution, as amended and supplemented.
Generally, in connection with its issuance of a Reserve Policy,
Financial Guaranty requires, among other things, (i) that, so
long as it has not failed to comply with its payment obligations
under the Reserve Policy, it be granted the power to exercise any
remedies available at law or under the authorizing document other
than (A) acceleration of the Bonds or (B) remedies which would
adversely affect holders in the event that the issuer fails to
Financial Cuaramhy hi:unurre
Gunpany
Page C-2
reimburse Financial Guaranty for any draws on the Reserve Policy;
and (ii) that any amendment or supplement to or other
modification of the principal legal documents be subject to
Financial Guaranty's consent. The specific rights, if any,
granted to Financial Guaranty in connection with its issuance of
the Reserve Policy are set forth in the description of the
principal legal documents appearing elsewhere in this Official
Statement. Reference should be made as well to such description
for a discussion of the circumstances, if any, under which the
Indian River County, Florida is required to provide additional or
substitute credit enhancement, and related matters.
This Official Statement contains a section regarding the ratings
assigned to the Bonds and references should be made to such
section for a discussion of such ratings and the basis for their
assignment to the Bonds. Reference should be made to the
description of the issuer for a discussion of the ratings, if
any, assigned to such entity's outstanding parity debt that is
not secured by credit enhancement.
The Reserve Policy is not covered by the Property/Casualty
Insurance Security Fund specified in Article 76 of the New York
Insurance Law.
Financial Guaranty is a wholly-owned subsidiary of FGIC
Corporation (the "Corporation"), a Delaware holding company. The
Corporation is a subsidiary of General Electric Capital
Corporation ("GE Capital"). Neither the Corporation nor GE
Capital is obligated to pay the debts of or the claims against
Financial Guaranty. Financial Guaranty is a monoline financial
guaranty insurer domiciled in the State of New York and subject
to regulation by the State of New York Insurance Department. As
of September 30, 1995, the total capital and surplus of Financial
Guaranty was approximately $994,500,000. Financial Guaranty
prepares financial statements on the basis of both statutory
accounting principles and generally accepted accounting
principles. Copies of such financial statements may be obtained
by writing to Financial Guaranty at 115 Broadway, New York, New
York 10006, Attention: Communications Department (telephone
number: (212) 312-3000) or to the New York State Insurance
Department at 160 West Broadway, 18th Floor, New York, New York
10013, Attention: Financial Condition Property/Casualty Bureau
(telephone number: (212) 602-0389).
\carter\commit\indian. doc
Fiuwu•inl Cuunum Insuranev w
11513nNulW�,n FGIG
11S
.Xem Vork. NA 1(HHH)
(2 12) 312-3(H)O
(8(H)) :i:i2.(NH)1
A GECapital Company
Commitment
For Minh cipal Raid Insuralive
Issuer: Indian River County, Florida Date of Commitment:
March 4, 1996
Expiration Date:
May 4, 1996*
Bonds
Insured: Not to Exceed Premium: .21% of total debt
$42,000,000 in aggregate principal service on the Bonds
amount of Water and Sewer Revenue Insured**
Bonds, Series 1996
FINANCIAL GUARANTY INSURANCE COMPANY
("Financial Guaranty")
A Stock Insurance Company
hereby commits to issue a Municipal Bond New Issue Insurance Policy (the
"Policy"), in the form attached hereto as Exhibit A, relating to the
above-described debt obligations (the "Bonds"), subject to the terms and
conditions contained herein or added hereto.
To keep this Commitment in effect after the Expiration Date set forth
above, a request for renewal must be submitted to Financial Guaranty
prior to such Expiration Date. Financial Guaranty reserves the right to
refuse wholly or in part to grant a renewal.
* Subject to written acceptance of this Commitment being furnished to
Financial Guaranty by the earlier of the date on which the
disclosure document relating to the Bonds is circulated and
March 11, 1996.
** The amount of Bond proceeds deposited with the Trustee/Paying Agent
at closing for the payment of accrued interest shall not be applied
as a credit in calculating total debt service on the Bonds Insured.
Page 1 of 4
Finandal Guaranty
. In.urow•n
(Aanpnm
THE MUNICIPAL BOND NEW ISSUE INSURANCE POLICY SHALL BE ISSUED
IF THE FOLLOWING CONDITIONS ARE SATISFIED:
1. The documents to be executed and delivered in connection
with the issuance and sale of the Bonds shall not
contain any untrue or misleading statement of a material
fact and shall not fail to state a material fact
necessary in order to make the information contained
therein not misleading.
2. No event shall occur which would permit any purchaser of
the Bonds, otherwise required, not to be required to
purchase the Bonds on the date scheduled for the
issuance and delivery thereof.
3. There shall be no material change in or affecting the
Bonds (including, without limitation, the security for
the Bonds) or the financing documents or the official
statement (or any similar disclosure documents) to be
executed and delivered in connection with the issuance
and sale of the Bonds from the descriptions or forms
thereof approved by Financial Guaranty.
4. The Bonds shall contain no reference to Financial
Guaranty, the Policy or the municipal bond insurance
evidenced thereby except as may be approved by Financial
Guaranty.
5. Financial Guaranty shall be provided with:
(a) (i) executed copies of all financing documents, the
official statement (or any similar disclosure
document), and all Bond documentation evidencing
the Issuer's ability and intent to comply with the
Internal Revenue Code of 1986, as amended (if in
the opinion of bond counsel (described below) on-
going compliance would be necessary to maintain the
exemption from. federal income taxation of interest
on the Bonds), which shall be in form and substance
acceptable to Financial Guaranty; and (ii) the
various legal opinions delivered in connection with
the issuance and sale of the Bonds, including,
without limitation, the unqualified approving
opinion of bond counsel rendered by a law firm
acceptable to Financial Guaranty and addressed to
(or with a reliance letter addressed to) Financial
Guaranty, which opinion shall include a statement
to the effect that the interest on the Bonds is
excludable from gross income of the holders thereof
for federal income tax purposes under the Internal
Revenue Code of 1986, as amended; and (iii)
opinion(s) of counsel, addressed to and in form and
substance satisfactory to Financial Guaranty, as to
"arTe 2 of 4
Financial Guaran(y Insuranrr
Onlipany
the due authorization, validity and enforceability
of all financing and bond documentation. Copies of
all drafts of such documents and legal opinions
(blacklined as appropriate) prepared subsequent to
the date of this Commitment shall be furnished to
Financial Guaranty. Final drafts of such documents
shall be provided to Financial Guaranty at least
five (5) business days prior to the issuance of the
Policy unless Financial Guaranty shall approve a
shorter period and such document-- shall be
satisfactory to Financial Guaranty in all respects.
(b) Evidence of wire transfer in federal funds in an
amount equal to the insurance premium, unless
alternative arrangements for the payment of the
premium acceptable to Financial Guaranty have been
made prior to the delivery date of the Bonds.
(c) On or prior to the date of delivery of the Policy,
Financial Guaranty shall receive a letter from bond
counsel stating that all requirements of Condition
6 to this Commitment have been satisfied and
incorporated into the appropriate bond documents.
All drafts of the preliminary official statement,
official statement or any other disclosure documents and
the form of the Bonds should be directed to the
attention of Esther K. Sandy (212-312-3261) at Financial
Guaranty for approval. All other documentation and any
inquiries concerning this Commitment should be directed
to Elza Carter (212-312-3071), the Financial Guaranty
analyst assigned to this transaction.
ADDITIONAL CONDITIONS
6. The applicable supplement shall contain all of the same
terms granted to or for the benefit of Financial
Guaranty to the same extent set forth in the Issuer's
Supplements relating to the FGIC-insured Series 1989,
Series 1991, and Series 1993 Bonds. Such supplement
shall be subject to Financial Guaranty review and
approval.
7. The authorizing documents) shall be subject to
Financial Guaranty's review and approval and shall
incorporate all of the terms and conditions set forth in
this Commitment hereto, all of which provisions may, at
bond counsel's election, be incorporated into one
article of, or as an exhibit to, the authorizing
document(s), or may be incorporated into the appropriate
specific sections of the authorizing document(s).
fine 3 )f 4
Financial Guaranty• In+uranvr
(aanpany
8. The flow of funds shall be modified to allow for any
transfer -out of revenues to occur only after the end of
each fiscal year.
9. The Bonds shall bear a Statement of Insurance in the
form attached hereto as Exhibit B. BOND PROOFS SHALL BE
APPROVED BY FINANCIAL GUARANTY PRIOR TO PRINTING.
10. The preliminary official statement and the official
statement shall (a) be satisfactory in form and
substance to Financial Guaranty and (b) shall contain
the language attached hereto as Exhibit C and only such
other references to Financial Guaranty as we shall
supply or approve.
11. Promptly after the closing of the Bonds, Financial
Guaranty shall receive three completed sets of executed
documents (one original and two photocopies), copies of
which we will deliver to each agency rating the Bonds.
Kathleen M. Evers
Senior Analyst
To keep this commitment in effect to the Expiration Date set
forth on the first page, Financial Guaranty must receive a
duplicate of this Commitment executed by an appropriate
officer of the Indian River County, Florida by the earlier of
the date on which the disclosure document relating to the
Bonds is circulated and March 11, 1996.
The undersigned agrees that if the Bonds are insured by a
policy of municipal bond insurance, such insurance shall be
provided by Financial Guaranty in accordance with the terms
of this Commitment.
Accepted as of , 1996 by the Indian River
County, Florida.
BY:
TITLE:
Pale 4 of 4
uuuu �.�I Gu.wuu� Imuran r
Couq�.w�
The undersigned agrees that if the reserve fund requirement
for the Bonds is met in whole or in part by a surety bond,
letter of credit or insurance policy, such reserve fund credit
instrument shall be a Reserve Policy provided by Financial
Guaranty in accordance with the terms of this Commitment.
Accepted as of /4/ , 1996 by the Indian River County,
Florida.
BY: I <WI
T I T % p 'r tr�Clt�
Finandal Gummy bistir1111PP
0)1111"111%
The undersigned representative of William R. Hough & Co.,
underwriter of the Indian River County, Florida Water and Sewer
Revenue Bonds, Series 1996 (the "Bonds") hereby agrees that if
the Bonds are insured by a policy of municipal bond insurance,
such insurance shall be provided by Financial Guaranty Insurance
Company in accordance with the terms and provisions of the
Commitment for Municipal Bond Insurance dated March 4, 1996
provided by Financial Guaranty Insurance Company with respect to
the Bonds.
WILLIAM R. HOUGH & CO.
By:
Title:
Dated:
FINANCIAL GUARANTY INSURANCE COMPANY
PROCEDURES FOR
PAYMENT OF PREMIUM
Financial Guaranty's issuance of its Municipal Bond New Issue
Insurance Policy at bond closing is contingent upon its receipt of
the premium. NO POLICY MAY BE RELEASED UNTIL RECEIPT OF SUCH
AMOUNT HAS BEEN CONFIRMED. Set forth below are the procedures to
be followed for confirming the amount of the premium to be paid and
for paying such amount:
Confirmation of Upon determinAtinn nf the final debt
Amount to be Paid: service schedule, provide such schedule to
Financial Guaranty, Attention: Esther K. Sandy
at 212/312-3261 and subsequently confirm with
her the amount of the premium.
Payment: Premium Due Date
Method of Payment: Wire Transfer of Federal Funds
Wire Transfer BANKERS TRUST NEW YORK
Instructions: ABA Number 021-001-033
16 Wall Street, New York, New York
For Credit to Financial Guaranty Insurance
Company
Account #50-256-127
FGIC Policy #
FGIC CONTACT: Esther K. Sandy (212/312-3261)
Any questions concerning these procedures or any premium payment
method other than outlined above should be directed to the
attention of Esther K. Sandy at least two banking days prior to the
scheduled payment date.
CONFIRMATION OF RECEIPT OF PREMIUM
Financial Guaranty will accept as confirmation of the premium
payment a wire transfer number and the name of the sending
bank, to be communicated on the closing date to Esther K.
Sandy 212/312-3261.
Upon confirmation of the premium payment and satisfaction of
the other conditions set forth in the commitment letter,
Financial Guaranty will release the Policy.
REQUESTS FOR FURTHER INFORMATION OR
ALTERNATIVE PAYMENT ARRANGEMENTS
Requests for additional information regarding the procedures
described above or as to the acceptability of alternate payment
procedures should be directed to Esther K. Sandy 212/312-3261 at
least two business days prior to the closing date.
wire
Standard & Poor's Ratings Group
Finance Department
I T '
Municipal
Bond insurance Administration
Fee Policy & Billing Administration
25 Broadway
New York, Now York 10004.1064
Telephone 212/412-0355
FAX 212/208-8262
Par Amount:
Issue Name:
Commitment #:
In order to expedite the billing process for Standard & Poor's rating fees, please provide
billing address and contact person information below. This information should be forwarded
to S&P as soon as an issue sale has been completed.
Name & Title:
Can.
Address:
Telephone #:
Enclosed is a self-addressed envelope to further assist this process. If you should have any
questions, please call Vincent Orgo at S&P 212/412-0355.
II1.1ti-d (4HIlal11% lo•tjnlory
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800 -112-00011
A GE Capital Company
Endorsement
To Financial Guaranty Intiuranc'1( Company
Insurance Po icy
Polirit Number:
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Logo Presentation for Official Statement
All -offering circulars relating to securities insured by
Financial Guaranty are required to bear our,"FGiC" Logo,
attached. it is essential that the following legend
accompany the Logo on all such materials:
"FGIC is a registered service mark used by
Financial Guaranty Insurance Company, a
private can Wy not affiliated with any
O.S. Government agency."
The legend must appear in bail faee type, adjacent to the
Logo, and not as a footnote.
Thank you for your cooperation in this matter and do not
hesitate to contact us with any questions on the use of the
Logo.
Official Statement and Tombstone
Logotype Configuration
Financial Guaranty Insurance
Company
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Financial Guaranty Insurance
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Financial Guaranty Insurance Company
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OFFICIAL STA11111 M
NEW ISSIX
y�.y
RATING:
Filch: "AAA"
Moodyls: "An"
Stasdard & Poona: "AAA"
Ilaaacial Goarasty Land
In tht orieien of sod Cew v4 bated on mau f Am freerst on the Bow& witl be esdrdrd flaw lrou wean for Fedow N"M as Orgmu
Md it wa en fan of tox Ironer for Fwfow+ of tht fiAtrd alterwetivt mwww,w tax iwposed on wdivdwal, and em"re ions. For an
g1Motion of wring* tax aow,elw ores -kr f*&W low *Mick my rtwk from dt owwenbip ofdu u Aon&. we Ae dl,ewesion wder tht kedw
TALTMA27M - Herein Under t law. A# Bow& and the iacowr titer -ram wX be exoopt Jean ad swe, cawty and nwwow taxotion in the
,tate ofTttwwwte, WWW iakerwawae,1A1W*radestak tore. andTawwuee corporow ftowhae andaria taxes. (See TAXMATTERS" htrek)
$4,100,000
MEIGS COUNTY, TENNESSEE
SCHOOL BONDS, SERIFS 1995
(ULT) (Bank Qndii3ed)
Dated: May 1, 1995
Due: May 1, as shown below
The $4,100,000 Schad Bonds, Series 1995 (the 'Sonde') will be issued as Billy registered Bands without cogpaos
and in denominations of $5,000 or any integral multiple thereof. Interest on the Bands is payable semi-almually on
May I and November 1 as long as the Bands remain outstanding, commencing May 1, 1996 to the registered owners
of the Bands by First Tennessee Banti National Association, Memphis, Tennessee, the registration agent and paying
not (the "Registration Agent"). The principal on the Bonds Is payable when due upon surrender of the Bonds at the
principal eosporate trust office of the Registration Agent.
The payment of the principal of and interest on the Bonds when due will be insured by a municipal bond insurance
policy to be issued by Financial Guaranty Insurance Company simultaneously with the delivery of the Bands.
Fmmdal Guaranh, Insurance
Compuiv
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The Bands are subject to optional tedei*on prior to maturity as described herein. The Bonds shall matut+e aerially
and are payable on May l of each year as follows:
The Bonds are payable from unlimited ad valorem taxes to be levied an all taxable property within the County. For
the prompt payment of principal of, premium, if any, and interest on the Bonds, the full filth and credit of the County
are irrevocably pledged.
The Aon& on offered when as and V wwr4 wb)rcr to the approval of the kesho by Btu, Berry A $wwr, N"Wile. Tenneam, o wd Cewrr4
what opWae will be prwrd en the Bon&. Certain lepal naffs►, will be passed upon for at Cowry by Mae Veavy. rflw^ &9-, CaAuermty, J.C.
Brn�ord L Co. hat aced at Fiwataial Advisor w the County m conwetxfon with the stir of the Bond,. tb Bend, e►w s recred to be evsUa►lt far
ddivtry rhnr fh Dxpo,iwry 7rwu Compaty in New York New York, on or abowt May 4,1995.
M& Of kid Swomeat ie deed A"H 19.1993.
MATURITIES, AMOUNTS, RATES AND YIELDS
Maturity
latarwt
Yield or
Maturity
hdaut
Yield or
May 12
Ammt
Rate
Price-
(May I
Atrioilnt.
11m
_ftkl
1997
$ 45,000
5.15%
4.35%
2005
$360,000
5.15%
100 96
1998
45,000
5.15
4.50
2006
380,000
5.25
100
1999
50,000
5.15
4.60
2007
400,000
3.30
5.35
2000
50,000
5.15
4.70
2008
420,000
5.40
5.45
2001
55,000
5.15
4.75
2009
443,000
5.50
5.55
2002
55,000
5.15
4.80
2010
470,000
5.60
5.65
2003
60,000
5.15
4.95
2011
495,000
5.70
100
2004
345,000
5.15
5.05
2012
425,000
5.70
5.75
The Bonds are payable from unlimited ad valorem taxes to be levied an all taxable property within the County. For
the prompt payment of principal of, premium, if any, and interest on the Bonds, the full filth and credit of the County
are irrevocably pledged.
The Aon& on offered when as and V wwr4 wb)rcr to the approval of the kesho by Btu, Berry A $wwr, N"Wile. Tenneam, o wd Cewrr4
what opWae will be prwrd en the Bon&. Certain lepal naffs►, will be passed upon for at Cowry by Mae Veavy. rflw^ &9-, CaAuermty, J.C.
Brn�ord L Co. hat aced at Fiwataial Advisor w the County m conwetxfon with the stir of the Bond,. tb Bend, e►w s recred to be evsUa►lt far
ddivtry rhnr fh Dxpo,iwry 7rwu Compaty in New York New York, on or abowt May 4,1995.
M& Of kid Swomeat ie deed A"H 19.1993.
tw . Standard L Poor's Ratings Group /r/
Municipal Finance Department ■ 5 I I
Bond lnwrance Administration
Fee Policy B BM t0 Administration
25 Broadway
New York, New York 100041084
Telephone 2121412-0355
STANDARD dt POOR'S RATINGS FEES FOR
INSURED ISSUES and ASSIGNMENT
OF INSURER'S CLAIMS - PAYING RATINGS
TO INSURED ISSUES
Standard do Poor's Ratings Group currently rates the insurance claims paying ability of Financial
Guaranty Insurance Company (FGIC) "AAA" for long-term obligations, and only after specific
review by S&P, OSP- I+"for short-term obligations. Accordingly, obligations insured by FGIC
will receive the appropriate S&P rating.
Prior to assigning a rating to an insured obligation, S&P verifies that FGIC's insurance policy
for the issue(s) to be insured guarantees full and timely payment of aA principal and interest, in
full and when due, and is permanent and unconditional for the full life and maturity of the
insured obligation(s). S&P also receives preliminary information from FGIC at the time of a
commitment of insurance. An initial review of the security -type is made at the time S&P
receives policy information. Upon verification of these conditions S&P will assign the "AAA"
or "SP -1+" sating to the insured obligation(s). written confirmation of that action will be
provided to FGIC and made available prior to or by the date of the closing. The issue and its
appropriate "AAA" or "SP -1+" rating will then be included in all S&P's published ratings
directories and ruing verification services.
STANDARD do POOR'S REQUIREMENTS
FOR INFORMATION FROM ISSUERS
In order to assess continually the "AAA" or "SP -1+" claims paying ability of FGIC, S&P
reviews the credit quality of selected insured obligations periodically. If the insured obligation
is on a parity with or it's repayment source is closely related to, outstanding debt which is rated
by S&P on an uninsured basis. S&P must review the ratings on the outstanding uninsured debt
prior to the closing date of the new insured obligations. S&P requires that the issuer provide
the same documentation normally required for the rating of any new issue, e.g., preliminary
official statement, legal documents, financial statements, etc.
In the course of our ruins process, issuers can also expect S&P analysts to call/contact
appropriate officials with questions and requests for additional information. As is the case with
all ntirngs, if sufficient and appropriate information is not made available. S&P swerves the
right to withdraw the outstanding parity or related ruing(s) on the uninsured debt.
If the insured obligation is not on parity with or related to other rated outstanding debt, S&P still
may assess the credit quality of the insured obligations (on an underlying basis) as a part of
S&P's overall evaluation of FGIVs insured portfolio. As a result, S&P may periodically
require additional information cmueming the insured obligation.
STANDARD dt POOR'S FEES
FOR INSURED ISSUES
Fees for rating services for insured debt obligations are determined on the sane basis as fees for
non-insured issuances. Information about fees can be determined, for specific obligations or
based on general "ranges" of fees by calling Mr. Vincent Orgo or Mr. Michael Gmitro at (212)
412-0355. Standard do Poor's/Municipal Finance Department billing dt fees policy for insured
debt issuances is as follows:
L Each insured obligation will be billed a rating service fee. Fees are payable, in full, by
the issuing entity, underwriter, financial advisor or purchaser of insurance - depending
upon the structuring of the debt obligation. Multiple insurance policies may be a basis
for additional fee charges beyond normal fees.
Il. When insurance is obtained on an issuance when S&P has not received an application
for a rating on an uninsured basis, the invoice for rating cervices will be billed and
forwarded to the purchaser of the insurance, unless otherwise advind (see attached). If
rating fees am to be paid by other than the purchasers of the insurance, S&P MUST HE
NOTIFIED WHOM TO BILL.
III. When an issue has received an S&P rating on an uninsured basis and the issue then
subsequently is insured at the time of sale, S&P will bill the issuer or other appropriate
Party of the debt without any additional charges for the insured rating ("AAA" or "SP-
I +").
Bond Insurance Administration/Fee Policy do Billing Administration
Arthur J. Grisi, Senior Via President 212/412-0355
Vincent Orgo, Administrative Officer 212/412-0355
Michael Gmitro, Pricing Specialist 212/412-0355
Fax Number 212/208-8262
Standard & Poor's Ratings Group
Municipal Finance Department
Bond Insurance Administration
Fee Policy & Billing Administration t
25 Broadway
New York, New York 10004.1064
Telephone 212/412.0355
FAX 2121208.8262
1 e u�usrelr .s ►!� e s e �rrr
Par Amount:
Issue Name:
Commitment p:
In order to expedite the billing process for Standard & Poor's rating fees, please provide
billing address and contact person information below. This information should be forwarded
to S&P as soon as an issue sale has been completed.
Name & Title:
Company:
Address:
Telephone A':
Enclosed is a self-addressed envelope to further assist this process. If you should have am
questions, please call Vincent Orgo at S&P 212/412.0355.
RATING AGENCIES AND RA71NG
AGENCY MES ON INSURED TRANSACTIONS
The claims -paying ability of Financial Guaranty insurance Company ("Financial Guaranty') has
been rated "AA" by Fitch Investors Service, Inc ("Fitch'), "Au" by Moody's Investors
Service, Inc. ("Moody's) and "AAA" by Standard & Poor's Rating Group ("S&P').
Financial Guaranty notifies and provides information to each of the rating agencies as to each
series of sauxities which Financial Guaranty commits to insure. Fitch, Moody's and S&P will
race securities insured by Financial Guaranty "AAA", "Aaa", and "AAA", respectively, upon
verification by such rating agency that the insured issue complies with such rating agency's
requirements tfor insured issues and subject to the following. Fitch will assign its "AAA" rating
to the securities insured by Financial Guaranty, if requested by the issuer. Moody's has advised
Financial Qatenty that it will assign its "Aaa" rating to each security insured by Financial
Guaranty. Pursuant to its ratings contract with Moody's. Financial Guaranty, itself,
automatically applies for a rating on each security insured by Financial Guaranty. S&P has
advised Fnnaacial Guaranty that it will assign its "AAA" rating to each security insured by
Financial Guaranty.
Payment of the fees charged by any rating agency for rating an insured issue is a matter solely
between the issuer and the respective rating agency. Financial Guaranty is not responsible for
any such fees and will not seek to confirm the issuer's payment of such fees. The release of
Financial Gusrsnty's bond insurance policy or surety bond is not subject to the payment of such
fees.
RATINGS
[Insert name of rating agencies who are rating the insured bonds), which have assigned ratings to
the Bonds, have done so with the understanding that, upon delivery of the _ Bonds, the
Financial Gwranty Policy will be issued by Financial Guaranty. Such ratings reflect only the
views of such cnanintions and any desired explanation of the significance of such ratings
should be obtained from the ruing agency furnishing the same, at the following addresses; [Fitch
Investors Service, Inc., One State Street Plaza, New York, New York 10004,] [Moody's
Investors Service, Inc., 99 Church Street, New York, New York 10007;] [Standard & Poor's
Corporation, 2:5 Broadway, New York, New York 10004). Generally, a rating agency bases its
rating on the information and materials furnished to it and on investigations, studies and
assumptions of its own. There is no assurance such ratings will continue for any given period of
time or that such ratings will not be revised downward or withdrawn entirely by the rating
agencies, if in thejudgment of such rating agencies, circumstances so warrant. Any such
downward revision or withdrawal of such ratings may have an adverse effect on the market price
of the Boards.
weooMMftl.dx
Moodys Investors service
Pude Finance DeloWnwi
Moody's Ratings and Fees for Insured Issues
Assignment of Insurer's Claims -Paying Ratings to Insured Issues
Moody's Investors Service currently rates the
Insurance claims -paying ability of Financial Guaranty
Insurance Company (FG1C)Ass for long -tern
obligations and MIG 1 for short -teen notes.
Accordingly, Moody's will assign the appropriate
rating to each obligation insured by FGIC.
By seeking bond insurance from FGIC, the issuer
automatically causes application to be made on its
behalf to Moody's for assigntn nt of a rating to the
insured securities.
Prior to assigning a rating to an insured obligation,
Mood%"s will verify that FGIC's insurance policy for
the issue to be insured guarantees full and timely
payment of all principal and interest when due, and is
permanent and unconditional for the life of the insured
obligation. Upon verification of these conditions
Moody's will assign the Aaa or MIG 1 rating to the
insured obligation.
After Moody's assigns the rating, written confirmation
of that action mill be provided to FGIC and made
available at the closing. The issue and its Aaa or MIG
1 rating will then be included in all Moody's published
ratings directories and rating verification services.
Moody's Kequirements for Information from Issuers
addition to our verification of the insured
transaction prior to the assignment of the Aaa or MIG
1 rating. Moody's reviews the underlying credit quality
of the insured obligation.
If the insured obligation is on parity with, or its
repayment source is closely related to, outstanding
debt which is rated by Moody's on an uninsured basis,
Moody's will review the ratings on the outstanding
uninsured debt prior to the closing date of the new
insured obligation. Moody's will require the issuer to
provide the same documents normally required for the
rating of any new issue, e.g., preliminary official
statement, legal documents, financial statements, etc.
In the course of our rating review, issuers can also
expect a Moody's analyst to call with questions and to
Rating Fee for Insured Issues
Moody's fees for insured issues are determined on the
same basis as fees for non-insured issues. Such fees
can be determined by calling Anita Webb (212) 353-
0901 or Bernie Morris (212) 533-405 5. at Moodv's.
Moody's billing policy is as follows:
(a) Each insured obligation will be billed a rating
service fee.
request additional information. As is the case with all
rating reviews, if sufficient and appropriate
information is not made available Moody's may
withdraw the outstanding parity or related ratings on
the uninsured debt.
If the insured obligation is not on parity with or related
to other rated outstanding debt, Moody's still will
assess (for internal purposes) the credit quality of the
insured obligation as a part of Moody's overall
evaluation of the credit quality of the insured portfolio
of FGIC. In addition, Moody's may from time to time
require updated information concerning the insured
obligation.
(b) When insurance is purchased on an issue where
Moody's has not received an application for a
rating on an uninsured basis, the rating fee will be
billed to the purchaser of the insurance.
(c) When an issue has received a Moody's rating on an
uninsured basis and the issue is subsequently
insured, Moody's will bill the issuer without an
additional charge for the insurance rating.
Logo Presentation for Official Statement
All offering circulars relating to securities insured by
Financial Guaranty are required to bear our,"FGIC" Logo,
attached. It is essential that the following legend
accompany the Logo on all such materials:
"fGIC is a registered service mark used by
Financial Guaranty Insurance Company, a
private company not affiliated with any
Q.s. Government agency."
The legend must appear in bold lace type, adjacent tc the
Logo, and not as a footnote.
Thank you for your cooperation in this matter and do not
hesitate to contact us with any questions on the use of the
Logo.
Official Statement and Tombstone
Logotype Conflguration
ImFinancial Guaranty Insurance
e Company
FCIC r a meplewmad wMa awe4 wd y Fkraaerl Gaaeaary ra...w Cawpny, • peivw eawpaay w d(wea wrb wry Ua fav -awe- apaary.
ImFinancial Guaranty Insurance
e Company
POC r a meplawea'on awk mod by Frw eeW Grewwy bwwaaa Cawpaay. a prime erprry w arlWd WMk wry ua Garwaawa( apawy.
ImFinancial Guaranty Insurance
e Company
FCIC r a ma0 1 ' rwdm wwk wd by FL%wAd (;wawy laewawe CawpW,
a pdv8" erwpry w aMMw wkk wry u.8. Gavemawew spot).
MTSFinancial Guaranty Insurance
Company
FrAC r a momwed -mire -ark wed by Flsawrl (A wavy kwwewv (;m p .
a pm(ame erwpawy w eaubw wk am US. 6-eewwM spew y.
Financial Guaranty Insurance Company
MX r a rvOw d wnlae m" awd by FWwld Gawawy bawwwe Cnwpwy. a prl•w rawprey w dW1wd wMb any U8. CAveewarw apowy.
MT.
Financial Guaranty Insurance Company
FCIC r • upreM aeeNee arrk awd by Fkraae(al Gaaranly rwrw-e C-wpaay. a prM-eawpr�q w a�llwd wMb aw u8 Cwwawew yaney,
OFFICIAL STATEMENT
NBW 19SUE
RATING:
Fft&: "AAA"
Moody'x "Ase"
Standard & Pbores: "AAA"
Flnaadal Gaamty Inanrod
in rte opimoe of Boad 0awl, based on cassr knw, uumsr on rhe Bosh wX be exdu4d Jm trop umoae far Federal meant rax purposes
and is not an km of res prnferewn for purposra of rhe federal aUernative muninow rax imposed on individuals and cotporuiese. For an
0*1onotien of svrrain toss emselrrn rs seder federal law wbicAmay reoUpm rhe owwrAr of rhe Bonds. we rhe discussion under du headier
?AX MATI>4 W herrbe. [l v aiWnl law, ds Soso and rhe mom dwrov ne will be exagpt ioen all state, eousry and Nares pd mason in rhe
stare ofTasnessm swept mhar"we. bamOr and estate uses, and Tennessee corporate jiandwe and exam rags. (See 17AX MATTERS" herruo
$4,100,000
MEIGS COUNTY, TENNESSEE
SCHOOL BONDS, SERIES 1995
(MID (Bank Qus>1fied)
Dated: May 1, 1995
Due: May 1, as shown below
The $4,100,000 School Boods, Series 1995 (the ' Bonds") will be issued as fully registered Bonds without coupons
and in deaominsdons of $5,000 or any integral multiple thereof. Inie est on the Bands is payable semi-smsually on
May 1 and November 1 as loot as the Bends remain outstanding, commencing May 1, 1996 to the registered owners
of the Bends by First Tennessee Bank National Association, Memphis, Tennessee, the registration agent and paying
agent (the "Registration Ageat"). The principal on the Bends is payable when due upon surrender of the Boody at the
principal corporate oust office of the Registration Agent.
The payment of the principal of and interest on the Bands when due will be insured by a municipal bond'asuraoce
policy to be issued by Finsocial Guaranty Iasruaoce Company simultaneously with the delivery of the Bends.
Financial Guarmth, Insurance
Compam•
PUC ie a nwW W WFVW a,un end w lRuaaeW Getter inn..M. faapnr, a /eiww �rr.«.aluw.d ewi.ar l's C..xn..ea, Mrew!.
The Bonds are subject to optional redemption prior to maturity as described herein. The Bonds shall mum serially
and are payable on May 1 of each year as follows:
MATURIfM AMOUNTS, RATES AND YIELDS
Maturity
Interest
Yldd or
Maturity
Immut
YWd or
Nay I
AM=
JIML
Price
way I
Anmat
jwr.-
jWN
1997
S45,000
5.15%
4.35%
2005
S360,000
5.15%
100 %
1998
45,000
5.15
4.50
2006
380,000
5.25
100
1999
50,000
5.15
4.60
2007
400.000
5.30
5.35
2000
50,000
5.15
4.70
2008
420,000
5.40
5.45
2001
55,000
5.15
4.75
2009
445,000
5.50
5.55
2002
55,000
5.15
4.80
2010
470,000
5.60
5.65
2003
60,000
5.15
4.95
2011
495,000
5.70
100
2004
345,000
5.15
5.05
2012
425,000
5.70
5.75
The Bonds are payable from unlimited ad valorem taxes to be levied an all taxable property within the County. For
the Prompt PayMem of principal of, premium, if any. and mterest on the Bonds, the full faith and credit of the County
are irrevocably pledged
Tie Bonds we *Pftd when, as and if sewed, su&jw to as gprovw of rhe kesiso by Bun. Bary & Sian, NedYvilk, Tawasee, Bond Coerewl,
htnpwmiU br prited en rhe Bon&. Certain lgel naps wit br pced upofor rhe Cowry by M* VmtymmrEsy..
COMM & way. a& Co. hspeas FhNWW Advisorso hCowry M earreaan wHY ft sols ofhe Bends. TeBendsosppetedbkavaiaHs jor
"Wry *a"1A Dgosuory Trsw Cengrry is New York Now York on or abow May 4, jigs.
TW Offidd SUMnOW is dated Apo719. IM.
RATING AGENCIES AND RATING
AGENCY FEES ON ]NsuRED TRANSACTIONS
The claims -paying ability of Financial Gua+rmty Insurance Company ("Financial Guaranty") has
been rated "AAA" by Fitch Investon Service, Inc ("Fitch"), "Anes" by Moody's Investors
Service, Inc. ("Moody's) and "AAA" by Standard & Poor's Rating Group ("S&P").
Financial Guaranty notifies and provides imformlWon to each of the rating spneiaa as to each
series of securities which Financial Guannty commits to insure. Fitch. Moody's and S&P will
rate securities insured by Financial Guarsatty "AAA", "Aaa", and "AAA", respectively, upon
verification by such rating agency that the insured issue complies with such rating agency's
requirements for insured issues and subject to the following. Fitch will assign its "AAA" rating
to the securities insured by Financial Guaranty, if requested by the issuer. Moody's has advised
Financial Guaranty that it will assign in "Aaa" rating to each security insured by Financial
Guaranty. Pursuant to its ratings contract with Moody's, Financial Guaranty, itself,
automatically applies for a rating on each security insured by Financial Guaranty. S&P has
advised Financial Guaranty that it will assign its "AAA" rating to each security insured by
Financial Guaranty.
Payment of the fees charged by any rating agency for rating an insured issue is a matter solely
between the issuer and the respective rating agency. Financial Guaranty is not responsible for
any such fees and will not seek to confirm the issuer's payment of such fees. The release of
Financial Guaranty's bond insurance policy or surety bond is not subject to the payment of such
fees.
RATINGS
(Insert name of rating agencies who are rating the insured bonds), which have assigned ratings to
the _ Bonds, have done so with the understanding that, upon delivery of the _ Bonds, the
Financial Guaranty Policy will be issued by Financial Guaranty. Such ratings reflect only the
views of such organizations and any desired explanation of the significance of such ratings
should be obtained from the ratting agency furnishing the same, at the following addresses; [Fitch
Investors Service, Inc., One State Street Plana, New York, New York 10004;] [Moody's
Investors Service, Inc., 99 Church Street, New York, New York 10007;) [Standard dt Poor's
Corporation, 25 Broadway, New York, New York 100041. Generally, a rating agency bases its
rating on the information and materials furnished to it and on investigations, studies and
assumptions of its own. There is no assurance such ratings will continue for any given period of
time or that such ratings will not be revised downward or withdrawn entirely by the rating
agencies, if in the judgment of such rating agencies, circumstances so wan=L Any such
downward revision or withdrawal of such ratings may have an adverse effect on the market price
of the _ Bonds.
VMo Wnft1Aoc
'41
-,
Moodys Investors service
Pubic Rnanoe Department
Moody's Ratings and Fees for Insured Issues
Assignment of Insurer's Claims -Paying Ratings to Insured Issues
Moody's Investors Service currently rates the
Insurance claims -paying ability of Financial Guaranty
Insurance Company (FGIC) Aea for long-term
obligations and MIG 1 for short-term notes.
Accordingly, Moody's will assign the appropriate
rating to each obligation insured by FGIC.
By seeking bond insurance from FGIC, the issuer
automatically causes application to be made on its
behalf to Moody -s for assignment of a rating to the
insured securities.
Prior to assigning a rating to an insured obligation,
Moody's will verify that FGIC's insurance policy for
the issue to be insuredguarantees full and timely
payment of all principal and interest when due, and is
permanent and unconditional for the life of the insured
obligation. Upon verification of these conditions
Moody's will assign the Aaa or MIG 1 rating to the
insured obligation.
After Moody's assigns the rating, written confinnation
of that action mill be provided to FGIC and made
available at the closing. The issue and its Aaa or MIG
1 rating will then be included in all Moody's published
ratings directories and rating verification services.
Moody's Requirements for Information from Issuers
In addition to our verification of the insured
transaction prior to the assignment of the Aaa or MIG
1 rating. Moody's reviews the underlying credit quality
of the insured obligation.
If the insured obligation is on parity with, or its
repayment source is closely related to, outstanding
debt which is rated by Moody's on an uninsured basis,
Moody's will review the ratings on the outstanding
uninsured debt prior to the closing date of the new
insured obligation. Moody's will require the issuer to
provide the same documents normally required for the
rating of any now issue, e.g., preliminary official
statement, legal documents, financial statements, etc.
In the course of our rating review, issuers can also
expect a Moody's analyst to call with questions and to
Rating Fee for Insured Issues
Moody's fees for insured issues are determined on the
same basis as fees for non-insured issues. Such fees
can be determined by calling Anita Webb (212) 553-
0901 or Bernie Morris (212) 553.4055, at Moodv's.
Moody's billing policy is as follows:
(a) Each insured obligation will be billed a rating
service fee.
request additional information. As is the case with all
rating reviews, if sufficient and appropriate
information is not made available Moody's may
withdraw the outstanding parity or related ratings on
the uninsured debt.
If the insured obligation is not on parity with or related
to other rated outstanding debt. Moody's still evil)
assess (for internal purposes) the credit quality of the
insured obligation as a pan of Moody's overall
evaluation of the credit quality of the insured portfolio
of FGIC. In addition, Moody's may from time to time
require updated information concerning the insured
obligation.
(b) When insurance is purchased on an issue where
Moody's has not received an application for a
rating on an uninsured basis, the rating fee will be
billed to the purchaser of the insurance.
(c) When an issue has received a Moody's rating on an
uninsured basis and the issue is subsequently
insured, Moody's will bill the issuer without an
additional charge for the insurance rating.
Standard & Poor's Ratings Group
Municipal Finance Department
Bond Insurance AdmWstntion
Fee Policy & Biting Administration
25 Broadway
New York. New York t OW4-1084
Telephone 212/412-0355
STANDARD do POOR'S RATINGS FEES FOR
INSURED ISSUES and ASSIGNMENT
OF INSURER'S CLAIMS - PAYING RATINGS
TO INSURED ISSUES
Standard do Poor's Ratings Group currently rata the insurance claims paying ability of Financial
Guaranty Insurance Company (FGIC) "AAA" for long-term obligations, and only after specific
review by S&P, "SP -1 +" for short-term obligations. Accordingly, obligations insured by FGIC
will receive the appropriate S&P ratinS.
Prior to assigning a ruing to an insured obligation, S&P verifies that FGIC's insurance policy
for the issue(s) to be insured guarantees full and timely payment of all principal and interest, in
full and when due, and is permanent and unconditional for the full life and maturity of the
insured obligation(s). S&P also receives preliminary information from FGIC at the time of a
commitment of insurance. An initial review of the security -type is made at the time S&P
receives policy information. Upon verification of these conditions S&P will assign the "AAA"
or "SP -1 +" rating to the insured obligation(s). Written confirmation of that action will be
provided to FGIC and made available prior to or by the date of the closing. The issue and its
appropriate "AAA" or "SP -1+" rating will then be included in all S&P's published Stings
directories and rating verification services.
STANDARD do POOR'S REQUIREMENTS
FOR INFORMATION FROM ISSUERS
In order to assess continually the "AAA" or "SP.I +" claims paying ability of FGIC, S&P
reviews the credit quality of selected insured obligations periodically. If the insured obligation
is on a parity with or it's repayment source is closely related to. outstanding debt which is rated
by S&P on an uninsured basis. S&P must review the ratings on the outstanding uninsured debt
prior to the closing date of the new insured obligations. S&P requires that the issuer provide
the same documentation normally required for the rating of any new issue, e.g., preliminary
official statement, legal documents. financial statements, etc.
in the course of our ruing process, issuers can also expect S&P utalysm to call/contact
appropriate officials with questions and requests for additional infomution. As is the case with
all ratings, if sufficient and appropriate inforntation is not made available, S&P reserves the
right to withdraw the outstanding parity or related rating(j) on the uninsured debt.
If the insured obligation is not on parity with or related to other and outstanding debt, S&P still
may assess the credit quality of the insured obligations (on an unden;lyin` basis) as a pan of
S&P's overall evaluation of FGIC's insured portfolio. As a result, S&P may periodically
require additional information owmerning the insured obli6uaiom.
STANDARD & POOR'S FEES
FOR INSURED ISSUES
Fees for rating services for insured debt obligations are determined on the same basis as fees for
non-insured issuances. Information about fees can be determined, for specific obligations or
based on general "ranges" of fees by calling Mr. Vincent Oreo or Mr. Michael Gmitro at (212)
412-0355. Standard & Poor's/Municipal Finance Department billing & fee: policy for insured
debt issuances is as follows:
L Each insured obligation will be billed a rating service fee. Fees are payable, in full, by
the issuing entity, underwriter. financial advisor or purchaser of insurance - depending
upon the structuring of the debt obligation. Multiple insurance policies may be a basis
for additional fee charges beyond normal fees.
IL When insurance is obtained on an issuance where SkP has not received an application
for a rating on an uninsured basis, the invoice for rating lervices will be billed and
forwarded to the purchaser of the insurance, unless otherwise advised (see attached). If
rating fees are to be paid by other than the purchasers of the insurance, S&P MUST BE
NOTIFIED WHOM TO BILL.
ID. When an issue has received an S&P ruing on an uninsured basis and the issue then
subsequently is insured at the time of sale, S&P will biU thie issuer or other appropriate
party of the debt without any additional charges for the insured rating ("AAA" or *SP.
1+0).
Bond Insurance Administration/Fee Policy & Billing Adtninisntration
Arthur J. Grill, Senior Vice President 212/412-0355
Vincent Orgo, Administrative Officer 212/412-0355
Michael Gmitro, Pricing Specialist 212/412-0355
Fax Number 212/208-8262
FinancinlGuaranh Insurance
Compilly
(To be printed on the Bonds)
STATEMENT OF INSURANCE
EXHIBIT B
Financial Guaranty Insurance Company ("Financial Guaranty") has
issued a policy containing the following provisions with respect to
the Indian River County, Florida Watar anti Sewer Revenue Bonds,
Series 1996 (the "Bonds"), such policy being on file at the principal
office of the Paying Agent, as paying agent (the "Paying Agent"):
Financial Guaranty hereby unconditionally and irrevocably agrees to
pay for disbursement to the Bondholders that portion of the principal
of and interest on the Bonds which is then due for payment and which
the issuer of the Bonds (the "Issuer") shall have failed to provide.
Due for payment means, with respect to the principal, the stated
maturity date thereof, or the date on which the same shall have been
duly called for mandatory sinking fund redemption and does not refer
to any earlier date on which the payment of principal of the Bonds is
due by reason of call for redemption (other than mandatory sinking
fund redemption), acceleration or other advancement of maturity, and
with respect to interest, the stated date for payment of such
interest.
Upon receipt of telephonic or telegraphic notice, subsequently
confirmed in writing, or written notice by registered or certified
mail, from a Bondholder or the Paying Agent to Financial Guaranty
that the required payment of principal or interest has not been made
by the Issuer to the Paying Agent, Financial Guaranty on the due date
of such payment or within one business day after receipt of notice of
such nonpayment, whichever is later, will make a deposit of funds, in
an account with State Street Bank and Trust Company, N.A., or its
successor as its agent (the "Fiscal Agent"), sufficient to make the
portion of such payment not paid by the Issuer. Upon presentation to
the Fiscal Agent of evidence satisfactory to it of the Bondholder's
right to receive such payment and any appropriate instruments of
assignment required to vest all of such Bondholder's right to such
payment in Financial Guaranty, the Fiscal Agent will disburse such
amount to the Bondholder.
As used herein the term "Bondholder" means the person other than the
Issuer who at the time of nonpayment of a Bond is entitled under the
terms of such Bond to payment thereof.
The policy is non -cancellable for any reason.
FINANCIAL GUARANTY INSURANCE COMPANY
Financial Guanuuv himminrr
Cnmpam
EXHIBIT C
(Disclosure Language For Official Statement)
Bond Insurance
Concurrently with the issuance of the Bonds, Financial
Guaranty Insurance Company ("Financial Guaranty") will issue
its Municipal Bond New Issue Insurance Policy for the Bonds
(the "Policy"). The Policy unconditionally guarantees the
payment of that portion of the principal of and interest on
the Bonds which has become due for payment, but shall be
unpaid by reason of nonpayment by the Indian River County,
Florida. Financial Guaranty will make such payments to
State Street Bank and Trust Company, N.A., or its successor
as its agent (the "Fiscal Agent"), on the later of the date
on which such principal and interest is due or on the
business day next following the day on which Financial
Guaranty shall have received telephonic or telegraphic
notice, subsequently confirmed in writing, or written notice
by registered or certified mail, from an owner of Bonds or
the Paying Agent of the nonpayment of such amount by the
Indian River County, Florida. The Fiscal Agent will
disburse such amount due on any Bond to its owner upon
receipt by the Fiscal Agent of evidence satisfactory to the
Fiscal Agent of the owner's right to receive payment of the
principal and interest due for payment and evidence,
including any appropriate instruments of assignment, that
all of such owner's rights to payment of such principal and
interest shall be vested in Financial Guaranty. The term
"nonpayment" in respect of a Bond includes any payment of
principal or interest made to an owner of a Bond which has
been recovered from such owner pursuant to the United States
Bankruptcy Code by a trustee in bankruptcy in accordance
with a final, nonappealable order of a court having
competent jurisdiction.
The Policy is non -cancellable and the premium will be fully
paid at the time of delivery of the Bonds. The Policy
covers failure to pay principal of the Bonds on their
respective stated maturity dates or dates on which the same
shall have been duly called for mandatory sinking fund
redemption, and not on any other date on which the Bonds may
have been otherwise called for redemption, accelerated or
advanced in maturity, and covers the failure to pay an
installment of interest on the stated date for its payment.
Generally, in connection with its insurance of an issue of
municipal securities, Financial Guaranty requires, among
other things, (i) that it be granted the power to exercise
any rights granted to the holders of such securities upon
the occurrence of an event of default, without the consent
of such holders, and that such holders may not exercise such
Financial Guarnnly In,uranoo,
Company
EXHIBIT C
Continued
rights without Financial Guaranty's consent, in each case so
long as Financial Guaranty has not failed to comply with its
payment obligations under its insurance policy; and (ii)
that any amendment or supplement to or other modification of
the principal legal documents be subject to Financial
Guaranty's consent. The specific rights, if any, granted to
Financial Guaranty in connection with its insurance of the
Bonds are set forth in the description of the principal
legal documents appearing elsewhere in this Official
Statement. Reference should be made as well to such
description for a discussion of the circumstances, if any,
under which the Indian River County, Florida is required to
provide additional or substitute credit enhancement, and
related matters.
This Official Statement contains a section regarding the
ratings assigned to the Bonds and references should be made
to such section for a discussion of such ratings and the
basis for their assignment to the Bonds. Reference should
be made to the description of the issuer for a discussion of
the ratings, if any, assigned to such entity's outstanding
parity debt that is not secured by credit enhancement.
The Policy is not covered by the Property/Casualty Insurance
Security Fund specified in Article 76 of the New York
Insurance Law.
Financial Guaranty is a wholly-owned subsidiary of FGIC
Corporation (the "Corporation"), a Delaware holding company.
The Corporation is a subsidiary of General Electric Capital
Corporation ("GE Capital"). Neither the Corporation nor GE
Capital is obligated to pay the debts of or the claims
against Financial Guaranty. Financial Guaranty is a
monoline financial guaranty insurer domiciled in the State
of New York and subject to regulation by the State of New
York Insurance Department. As of September 30, 1995, the
total capital and surplus of Financial Guaranty was
approximately $999,500,000. Financial Guaranty prepares
financial statements on the basis of both statutory
accounting principles and generally accepted accounting
principles. Copies of such financial statements may be
obtained by writing to Financial Guaranty at 115 Broadway,
New York, New York 10006, Attention: Communications
Department (telephone number: (212) 312-3000) or to the New
York State Insurance Department at 160 West Broadway, 18th
Floor, New York, New York 10013, Attention: Financial
Condition Property/Casualty Bureau (telephone number: (212)
602-0389) .
carter\commit\indian.doc
EXHIBIT C
PRELIMINARY OFFICIAL STATEMMIT
> PRELIMINARY OFFICIAL STATEMENT DATED MARCH 7, 1996
S
This Prallmbtaty O&W Statement 6 "Deemed Final" by the County as of Its date for purposes o4
NEW ISSUE end a sept for mislo omiwbns perteltted by, SEC Rale 13c2-12(b) (1). Rail Shn
(See "Rallap" banV)
15 In the opGUon of eryanf Miller and OIty , PA., Bond Com* auumins eompltana wUh amain covenants in the 1996 Resolution (asr h�
J3 def 6wd), ueder a dstIV Taws roguIadorer and Judictal deci,Nonx interest on the Serlsr 1996 Bondr it excluded from arae income for p-W-1 ojj
2 as t5 Income taxation and b not an iter" of tax pnjennoe jos purparer oJ'the jtderol alternative minimum tax Impcusd on Ind hldua4 and
a ,,, howe er a portion ojthe innrest on the Series 1996 Bonds owned bye tions may be sub/at to the federal alternative minimum tax whichff
3 in part on a4/usted current earning. The Seder 1996 Bonds are exempt from taxation under the laws of the State of Florida except ar to mate taxes and
8 t aoaebt oar d by Chapter 170, Florida Statutes, at amended on interest, income or profits on debt obllptlons owed by corporations, banks and saving
e See "Tax Exemption" herrin jar a description of certain federal minimum and other special taxes that may affect the tax treatment of
W~ on the Seder 1996 Bonds.
o'
$38,M,000t
INDIAN RIVER COUNTY, FLORIDA
WATER AND SEWER REVENUE BONDS
SERIES 1996
D"- March 1,15x% Doer September 1, u sham below
The Water and Sewer Revenue Bonds, Series 1996 (the "Series 1996 Bonds") arc being issued by Indian River County, Florida (the "County") in
fully mBistered farm in denominations of $5,000 or any integral multiple thereof. Interest on the Sena 19% Bonds b le semiannually on March 1
e sad September 1, commencing September I, 19%, by check or draft or, at the option of the registered owners of $1,000,000 or more in principal amount
g " _ of then Series 19% Bonds, by domestic wire under, of The Chase Manhattan Bank, N.A., New York, New Yore, as Parisi Agent (' a Agent"),
r made out and mailed to the Registered Owner, u shown on the rcgllstration books of the County maintained by The Chug Manhattan BsnL N,A., New
o York, Now York, es Bond Registrar ("Bond Registrar"), on the fifteenth day of the month next preceding the applicable interest payment date and ss
n r-N otherwise described heroin. a principal of the Series 19% Bonds, when due, and any premium thereon will be payable upon presentation and
surrender thereof at the principal corporate trust office of the Paying Agent. The Series 1996 Bonds aro subject to optional and mandatory redemption
prior to maturity u set forth berein.
yThe Serle 1996 Bonds aro being issued pursuant to the authority of the Constitution and laws of the State of Florida, includlnt Chapter 125,
Florida Statutes, and other applicable provisions of law (the "Act") and Indian River County Resolution No. 93-80, as amended and supplemented
(edlactively, the "Muter Bond Resolution"). including, but not limited to, amendments and supplements made by Resolution No. 9630, adopted by
o the County on February 20, 19% (the "1996 Resolution"), as the same may be amended and supplemented.
a The Seder 1996 Bonds aro being issued by the County to provide funds, together with certain other IegaBy available funds, to (i) make certain
eariltol improvements and additions to the water and sewer system owned and operated by the County (u described under "SERIES 19%
-P OJECfS" herein); (ii) reimburse the County for the cat of acquiring (including tie in costa) a water and sewer system from the City of Sebasdae,
Florida, (W) rchass for deposit to the Reserve Account established under the Muter Bond Resolution a surety bond in an amount equal to the
Reserve RRequ went for the Series 1996 Bonds, (iv) fund the Sinking Fund in an amount to pay a portion of the interest Ant coming due on the
g_ Series 19 6 Bonds, and (v) pay certain cats incurred in connection with the issuance of the Seri. If% Bonds. all as mora particularly described
S O herein.
32 Payment of the principal of and interest on the Series 1996 Bonds when due will be insured by a municipal bond insurance policy to be issued by
.s Financial Guaranty Insuraaa Company simultaneously with the delivery of the Series 1996 Bonds. See' MUNICIPAL BOND INSURANCE'
aEs herd". Fbnanew Guaranty Insurance
Company
H y
The Sella 1996 Bonds are limited obligations of the County. The Series 196 Bonds are payable b the County from, and secured by a Ben upon
and pledge of the Pledged Funds, consisting of the Net Revenues (ss herein defined), amounts on deposit in the Sinking Fund, the Bond Amortisation
" *g Account and the Reserve Account established under the Muter Bond Resolution, together with any other receippts, revenues and Ands plow
thereunder, on a parity with the $47.190,000 Indian River County, Florida, Water and Sewer Revenue Bonds, Series 1993A currently outstanding is the
,=
of $45,475 000 and the $3,330,000 Indian Riva County, Florida, Water and Sewer Revenue Bonds, Series 19938, currently outstanding in the
amount of $2,100,b00.
NEITHER THE COUNTY THE STATE OF FLORIDA NOR ANY POLITICAL SUBDIVISION THEREOF HAS PLEDGED ITS FULL
FAITH OSHALL EVElt CREDIff R HAlt VE RIGHTRTO G M EL THE PAYMENT
XERCISE OF ANY AD VALOREM OF THE SERIES 19% BONDS. NO
POWER THE
V
g OR TAXATION IN THE FORM OF ANY REAL. PROPERTY THEREIN TO PAY THE SERIES I ti BONDS OR THE LNTEREST DUE
THEREON NOR RE ENTITLED TO PAYMENT OF THE SERIFS 19% BONDS FROM ANY FUNDS OF THE COUNTY EXCEPT AS
DESCRIBED HEREIN.
SERIES 1906 BONDS
MATURITIES, AMOUNTSS, INTERESTSerb) Bonds S, PRICE OR YIELDS•
`.
to" Pflocw low"
S' Matter � -RM YMis MON&I Ameut RM YM
.G $ % —% $ %
iJ $ % Term Bonds, , due _ Price C0 R m Yield %
uPrice S to Yield 9i
(plus accrued interest from March 1, 1996)
y This cover contain certain information for quick reference only. it it not a summary of this issue. Investors must read the entire OAldal Statement
to obtain information essential to the making of an informed investment decision.
The Serio 196 Bonds are offered when, a and if issued and received by the Underwriters, subject to the�pp�v� of lepllry by Bryryou►t, Miller and
Oft P.A., Tdlahwee, Florida, Bond Couneel to the County. Certain legal matters wW be pasecd upon for the County by Cicala PVitunac, Esquire
Cowl, CoAttomey and by Bryant, Miller and Olive, P.A., Disclosure Counsel. Fishkind t Associate, Inc., Orlando, Florida b nn* as l
g Advisor to the Canty with respect to the Soria 1996 Bonds. It is expected that the Soria 1996 Bonds witl be available for delivery in New York, New
York, in dd dtiw form on or about , 19%.
William B. Neu# & Ca
Dated 19% Smith Barney Inc.
Preliminary, subject to change.
INDIAN RIVER COUNTY, FLORIDA
Board of County Commissioners
Fran B. Adams, Chairman
Carolyn K Eggert, Vice Chairman
Kenneth R. Macht
John W. Tippin
Richard N. Bird
Clerk of the Circuit Court and Ex-OfAcio Clerk
to the Board of County Commissioners
Jeffrey K Barton
County Administrator
James E. Chandler
County Attorney
Charles P. Vitunac
Director of Office of Management and Budget
Joseph A. Baird
Director of Utilities
Terrance G. Pinto
Bond Counsel
Bryant, Miller and Olive, PA.
Tallahassee, Florida
Financial Advisor
Fishkind & Associates, Inc.
Orlando, Florida
Certified Public Accountant
Berger/Harris/Toombs/Elam & McAlpin
Vero Beach, Florida
No dealer, broker, sales representative or any other person has been authorized by the County or the
Underwriters 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 foregoing. This Official Statement does not constitute an offer to sell or the solicitation
of an offer to buy and there shall be no sale of the Series 1996 Bonds by any person in any jurisdiction in which
it is unlawful for such person to make such offer, solicitation or sale. The information set forth herein has been
obtained from the County, the Bond Insurer and other sources which are believed to be reliable, but is not
guaranteed as to accuracy or completeness nor is such information to be construed as a representation by the
Underwriters or, as to information from other sources, the County. The information and the expressions of
opinions contained herein are subject to change without notice and neither the delivery of this Official Statement
nor any sale made hereunder shall, under any circumstances, create any implication that there has been no
change in the affairs of the County, the System, or the Bond Insurer since the date hereof or the earliest date
as of which such information is given.
IN CONNECTION WITH THE OFFERING OF THE SERIES 1996 BONDS, THE UNDERWRITERS MAY
OVERALIAT OR EFFECT TRANSACTIONS THAT MAY STABILIZE OR MAINTAIN THE MARKET
PRICE OFTHE SERIES 1996 BONDS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PRE-
VAIL IN THE OPEN MARKET. SUCH STABILIZATION, IF COMMENCED, MAY BE DISCONTINUED
AT ANY TIME.
TABLE OF CONTENTS
INTRODUCTION................................................................ 1
PURPOSE OF THE SERIES 1996 BONDS ............................................. 2
DESCRIPTION OF THE SERIES 1996 BONDS ......................................... 2
General................................................................ 2
Mandatory Redemption...................................................... 2
OptionalRedemption....................................................... 3
Notice of Redemption..................................................... 4
Registration, Transfer, and Exchange ............................................ 4
SECURITY AND SOURCES OF PAYMENT ........................................... 4
Pledged Funds.. .................................................. .... 4
Pledge of 1989 Special Assessment Revenues ...................................... 6
Pledge of 1990 Special Assessment Revenues .... .. 7
Extraordinary Mandatory Redemption of Series 1993B Bonds .......................... 8
Pledge of 1996 Special Assessment Revenues ...................................... 8
RateCovenant............................................................. 8
ReserveAccount........................................................... 9
Flow of Funds for the Bonds...............................................10
Additional Parity Bonds ...................................................... 11
Junior Lien Bonds.......................................................... 12
ESTIMATED SOURCES AND USES OF FUNDS ....................................... 12
MUNICIPAL BOND INSURANCE AND DEBT SERVICE RESERVE FUND POLICY ........... 13
BondInsurance ..................................................... 13
Debt Service Reserve Fund Policy .............................................. 13
Ratings.................................................................. 14
Financial Guaranty Insurance Company .......................................... 14
DEBT SERVICE SCHEDULE...................................................... 15
THESYSTEM................................................................. 15
General................................................................. 15
SystemStaff ............................................................... 16
Water and Sewer Customers .................................................. 17
Rate Structure......................................................... I... 18
SelectedFrtancial Data ...................................................... 20
SystemAnalysis Summary .................................................... 22
Water and Sewer Five Year Capital Improvement Plan ............................... 24
SERIES 1996 PROJECTS.......................................................... 24
WaterProjects............................................................. 24
SewerProjects............................................................. 25
LITIGATION................................................................... 25
TAX EXEMPTION .... ..................................................... 26
Tax Treatment of Original Issue Discoant......................................... 27
RATINGS...................................................................... 27
DISCLOSURE PURSUANT TO SECTION 517.051, FLORIDA STATUTES .................... 27
FINANCIAL STATEMENTS........................................................ 28
UNDERWRITING............................................................... 28
APPROVAL OF LEGALITY........................................................ 28
INVESTMENT POLICY........................................................... 28
ADVISORS AND CONSULTANTS................................................... 29
ACCURACY AND COMPLETENESS OF THE OFFICIAL STATEMENT ..................... 29
ADDITIONAL INFORMATION..................................................... 29
CONTINUING DISCLOSURE...................................................... 30
AUTHORIZATION OF OFFICIAL STATEMENT ....................................... 30
APPENDIX A - GENERAL INFORMATION CONCERNING INDIAN RIVER COUNTY,
FLORIDA
APPENDIX B - FINANCIAL STATEMENTS OF THE COUNTY FOR FISCAL YEAR ENDED
SEPTEMBER 30, 1995
APPENDIX C 'MASTER BOND RESOLUTION
APPENDIX D 'FORM OF OPINION OF BOND COUNSEL
APPENDIX E - SUMMARY OF CONTINUING DISCLOSURE CERTIFICATE
APPENDIX F - SPECIMEN MUNICIPAL BOND INSURANCE POLICY
$38,380,000•
INDIAN RIVER COUNTY, FLORIDA
Water and Sewer Revenue Bonds
Series 1996
INTRODUCTION
This Official Statement, which includes the cover page and the appendices hereto, furnishes certain
information relating to the sale by Indian River County, Florida (the "County") of $38,380,000• aggregate
principal amount of its Water and Sewer Revenue Bonds, Series 1996 (the "Series 1996 Bonds").
The Series 1996 Bonds are being issued pursuant to the authority of the Constitution and laws of the
State of Florida, including Chapter 125, Florida Statutes, and other applicable provisions of law (the "Act") and
Indian River County Resolution No. 93-80, as amended and supplemented (collectively, the "Master Bond
Resolution"), including, but not limited to amendments and supplements made by Resolution No. 96-30 adopted
by the County on February 20, 1996 (the "1996 Resolution"), on a parity with the $47,190,000 Indian River
County, Florida, Water and Sewer Revenue Bonds, Series 1993A currently outstanding in the amount of
$45,475,000 (the "Series 1993A Bonds") and the $3,330,000 Indian River County, Florida, Water and Sewer
Revenue Bonds, Series 1993B, currently outstanding in the amount of $2,100,000 (the "Series 1993B Bonds"
collectively with the Series 1993A Bonds, the "Series 1993 Bonds"). The Series 1996 Bonds together with the
Series 1993 Bonds and any additional parity bonds hereafter issued are herein referred to as the "Bonds."
The Series 1996 Bonds are limited obligations of the County, payable from and secured by a Gen upon
and pledge of the Net Revenues (as herein defined) of the water and sewer system owned and operated by the
County (the "System"), amounts on deposit in the Sinking Fund, the Bond Amortization Account and the Reserve
Account established under the Master Bond Resolution, together with any other receipts, revenues and funds
pledged thereunder (the "Pledged Funds"), on a parity with the Series 1993 Bonds.
Neither the County, the State of Florida nor any political subdivision thereof has pledged Its full faith
or credit or taxing power to the payment of the Series 19% Bonds. No holder of the Series 1996 Bonds shall
ever have the right to compel the exercise of any ad valorem taxing power of the County or taxation in any
form of any real property therein to pay the Series 1996 Bonds or the interest due thereon nor be entitled to
payment of the Series 19% Bonds from any funds of the County except as described herein.
Payment of the principal of and interest on the Series 1996 Bonds, when due, will be insured by a
municipal bond insurance policy (the "Policy") issued by Financial Guaranty Insurance Company (the "Bond
Insurer") simultaneously with the delivery of the Series 1996 Bonds. See "MUNICIPAL BOND INSURANCE"
herein.
The references, excerpts, and summaries of all documents referred to herein do not purport to be
complete statements of the provisions of such documents, and are made subject to all of the detailed provisions
of such documents, to which reference is directed for full and complete statements of all matters relating to the
Master Bond Resolution, the 1996 Resolution, the Series 1996 Bonds, the security for the payment of the Series
1996 Bonds and rights and obligations of the holders of the Series 1996 Bonds. Copies of these documents are
available from Jeffrey K. Barton, Clerk of the Circuit Court, Indian River County, 1840 251h Street, Vero Beach,
Florida 32960. Capitalized terms used but not defined herein have the same meaning as in the Master Bond
• Preliminary, subject to change.
Resolution unless the context would clearly indicate otherwise. A copy of the Master Bond Resolution is
attached hereto as Appendix C.
PURPOSE OF THE SERIES 1996 BONDS
The Series 1996 Bonds are being issued by the County to provide funds, together with certain other
legally available funds, to (i) make certain capital improvements and additions to the County's System (as
described below under "SERIES 1996 PROJECTS"); (u) reimburse the County for the cost of acquiring
(including tie in costs) a water and sewer system from the City of Sebastian, Florida, (iii) purchase for deposit
to the Reserve Account established under the Master Bond Resolution a surety bond in an amount equal to the
Reserve Requirement for the Series 1996 Bonds, (iv) fund the Sinking Fund in an amount to pay a portion of
the faterest first Coming due on the Series 1976 Bonds, and (v) pay certain costs incurred in connection with the
issuance of the Series 1996 Bonds, all as more particularly described herein.
DESCRIPTION OF THE SERIES 1996 BONDS
The Series 1996 Bonds will be dated March 1,1996; will bear interest from such date at the rates per
annum asset forth on the cover page hereof, payable semiannually on each March 1 and September 1, commenc-
ing September 1,1996; and will mature on September 1 in the years and principal amounts as set forth on the
cover page hereof.
The Series 1996 Bonds will be issued in fully registered form in denominations of $5,000 and any integral
multiple thereof. Interest on the Series 1996 Bonds is payable by check or draft or, at the option of the
registered owners (the "Registered Owners") of $1,000,000 or more in principal amount of the Series 19% Bonds,
by domestic wire transfer, of The Chase Manhattan Bank, NA., New York, New York, as Paying Agent ("Paying
Agent'), made out and mailed to, or in the case of a woe transfer of funds pursuant to the written instructions
of, the Registered Owner, as shown on the registration books of the County, maintained by The Chase
Manhattan Bank, NA., New York, New York, as Bond Registrar ("Bond Registrar"), on the fifteenth day of the
month next preceding the applicable interest payment date and as otherwise described herein. The principal of
the Series 1996 Bonds, when due, and any premium thereon will be payable upon presentation and surrender
thereof at the principal corporate trust office of the Paying Agent.
The Series 1996 Bonds may be transferred or exchanged for Series 1996 Bonds of other authorized
denominations at the principal corporate trust office of the Bond Registrar.
Muddery Redemption
The Series 1996 Bonds maturing on September 1, , are subject to mandatory redemption prior to
maturity in part (including portions of Bonds) at a price equal to 100% of the principal amount thereof plus
accrued interest thereon on September 1 in the years and amounts set forth below:
Principal
11K Amount
(maturity)
The Series 1996 Bonds maturing on September 1, , are subject to mandatory redemption prior to
maturity in part (including portions of Bonds) at a price equal to 100% of the principal amount thereof plus
accrued interest thereon on September 1 in the years and amounts set forth below.
Principal
-YAK Amount
(maturity)
The Series 1996 Bonds maturing on September 1, , are subject to mandatory redemption prior to
maturity in part (including portions of Bonds) at a price equal to 100% of the principal amount thereof plus
accrued interest thereon on September 1 in the years and amounts set forth below:
Principal
-YAK Amount
(maturity)
The County may apply moneys in the Bond Amortization Account to the purchase of Series 1996 Bonds
subject to mandatory redemption (the "Series 1996 Term Bonds") at prices not greater than par plus accrued
interest and apply the principal amount of any Series 1996 Term Bonds so purchased as a credit against and in
fulfillment of amortization installments required on the Series 1996 Term Bonds of the same maturity. If the
County shall purchase or call for redemption in any year Series 1996 Term Bonds in excess of the amortization
installment requirement for such year, such excess of Series 1996 Term Bonds so purchased or redeemed shall
be credited against subsequent mandatory redemption of the Series 1996 Term Bonds at such times and amounts
as the County may direct. To the extent the County's obligation to make installments in a particular year is
fulfilled through such purchases, the likelihood of redemption through such installments of any Registered
Owner's Series 1996 Bonds of the maturity so purchased will be reduced for such year.
Opttlonal Redemption
The Series 1996 Bonds maturing prior to September 1, , shall not be subject to redemption prior
to their respective dates of maturity. The Series 1996 Bonds stated to mature on or after September 1, ,
are subject to redemption at the option of the County in whole or, from time to time, in part on September 1,
or on any date thereafter at the respective redemption prices set forth below, expressed as percentages
of the principal amount to be redeemed, plus accrued interest to the date of redemption.
Redemption Period Redemption Price
September 1, through August 31, _ %
September 1, through August 31, %n
September 1, and thereafter %
If fewer than all of the Series 1996 Bonds are to be so redeemed, the County may select the maturity
or maturities to be redeemed. If fewer than all of the Series 1996 Bonds of any particular maturity are to be
redeemed, the Bond Registrar will select by lot the particular Series 1996 Bonds or portions of Series 1996 Bonds
of such maturity to be redeemed. The portion of any Series 1996 Bond of a denomination of more than 55,000
to be redeemed will be in the principal amount of $5,000 or an integral multiple of that sum.
Notice of Redesapdon
Nodi of the intention to redeem the Series 1996 Bonds in whole or in part will be mailed by the Paying
Agent, by first elm mail, to the Registered Owners of the Series 1996 Bonds to be redeemed in whole or in part
not more than 45 days and not less than 30 days prior to the date fixed for redemption, at their respective
addresses as shown on the registration books, in accordance with the terms of the Master Bond Resolution.
Such notice is to specify the series, maturities and numbers of Series 1996 Bonds to be redeemed (including the
CUSIP number); the date fixed for redemption; the redemption price or prices applicable to the Series 1996
Bonds to be redeemed; and that on the date fixed for redemption such Series 1996 Bonds will be payable at the
principal corporate trust office of the Paying Agent and that after such date interest shall cease to accrue on such
Series 1996 Bonds. if Registered Owners of all such Series 1996 Bonds to be redeemed file written waivers of
notice with the Paying Agent, such Series 1996 Bonds may be redeemed on the redemption date without neces-
sity of notice by mailing. Failure to mail any notice of redemption or any defect therein or in the mailing thereof
will not affect the validity of any proceeding for redemption of other Series 1996 Bonds called for redemption.
Registration, Transfer, and Exchange
All Series 1996 Bonds presented for transfer, exchange, redemption, or payment (if so required by the
County or the Bond Registrar) shall be accompanied by a written instrument or instruments of transfer or
authorization for exchange, in form and with guaranty of signature satisfactory to the County or the Bond
Registrar, duly executed by the Registered Owner or by his duly authorized attorney.
The County and the Bond Registrar may charge the Registered Owner a sum sufficient to reimburse
them for any expenses incurred in making any exchange or transfer. The Bond Registrar or the County also may
require payment from the Registered Owner or his transferee, as the case may be, of a sum sufficient to cover
any tax, fee, or other governmental charge that may be imposed in relation thereto. Such charges and expenses
shall be paid before any such new Series 1996 Bond shall be delivered.
The County and the Bond Registrar may treat the Registered Owner of any Series 1996 Bond as the
absolute owner thereof for all purposes, and shall not be bound by any notice to the contrary.
SECURITY AND SOURCES OF PAYMENT
Pledged Funds
The Bonds are limited obligations of the County. The Bonds will be payable by the County solely from
and secured by a Gen upon and pledge of the Pledged Funds, consisting of the Net Revenues of the System,
amounts on deposit in the Sinking Fund, the Bond Amortization Account and the Reserve Account established
under the Master Bond Resolution, together with any other receipts, revenues and funds pledged thereunder,
on a parity with the Series 1993 Bonds.
Neither the County, the State of Florida, nor any political subdivision thereof has pledged Its full faith
or credit or taxing power to the payment of the Bonds. No holder of the Bonds shall ever have the right to
compel the exercise of any ad valorem taxing power of the County or taxation In any form of any real property
tbeteln to pay the Bonds or the Interest due thereon nor be entitled to payment of the Bonds from any funds
of tk County acept as described herein.
Subject to the release of security as discussed below, "Net Revenues" for purposes of the Bonds means
Revenues less Operating Expenses. "Revenues" as used herein means: (i) all receipts and revenues of the
County derived from the imposition, collection, and enforcement of uniform water and sewer service rates, fees
and charges for the use of and the services furnished or to be furnished by the facilities constituting the System,
including the earnings and interest income derived from the investment of the moneys on deposit in various funds
and accounts established in connection with the System (the "Uniform Charges") but excluding Surcharges, Impact
Fees, Special Assessments (other than those expressly discussed herein), Franchise Fees, and Fees in lieu of
Franchise Fees; (ii) certain Special Assessments (as described below under "Pledge of 1989 Special Assessment
Revenues", "Pledge of 1990 Special Assessment Revenues" and "Pledge of 1996 Special Assessment Revenues"
herein), (w) all receipts and revenues of the County received from the operation of the System for the treatment
of septage and grease; (iv) all North Beach Water Surcharges (as hereinafter defined) for services furnished by
the North Beach Water System (as defined hereinafter); (v) with the consent of the Bond Insurer, so long as any
Series 1996 Bonds are outstanding, such Surcharges, Impact Fees, Special Assessments (other than those
expressly pledged), Franchise Fees, and Fees in lieu of Franchise Fees as the County, by resolution, may pledge
specifically in connection with the Bonds; and (vi) with the consent of the Bond Insurer, so long as any Series
1996 Bonds are outstanding, such other revenues of the County as the County, by resolution, may pledge specifi-
cally in connection with the Series 1996 Bonds.
As defined in the Master Bond Resolution, the term "Operating Expenses" means the current expenses
paid or accrued for the operation, maintenance and repair of all facilities constituting a part of the System, as
determined in accordance with generally accepted accounting principles, and shall include, without limiting the
generality of the forgoing, insurance premiums, administrative expenses of the County related solely to the
System, costs of labor, materials and supplies used for such operation and charges for the accumulation of the
appropriate reserves for current expenses not annually recurrent but which are such as may reasonably be
expected to be incurred in accordance with such accepted accounting methods, but shall exclude payments into
the Sinking Fund or the Reserve Account therein and any allowances for depreciation or for renewals or
replacements of capital assets of the System.
THE REVENUES PLEDGED IN CONNECTION WITH THE BONDS INCLUDE ONLY THE
UNIFORM CHARGES OF THE SYSTEM AND DO NOT INCLUDE ANY SURCHARGES, IMPACT
FEES, SPECIAL ASSESSMENTS (OTHER THAN THOSE EXPRESSLY DISCUSSED HEREIN),
FRANCHISE FEES, FEES IN LIEU OF FRANCHISE FEES, OR OTHER REVENUES OF THE SYSTEM,
EXCEPT CERTAIN RECEIPTS, REVENUES, AND SURCHARGES DESCRIBED IN (iii) AND
(iv) ABOVE.
The County may, by resolution of the Board of County Commissioners filed with the Clerk of the Board
of County Commissioners, except and release from the foregoing pledge and lien, and the phrase "Revenues"
as used in connection with the Bonds, shall no longer include the receipts and revenues of the County derived
from the Uniform Charges for the use of and services furnished or to be furnished by any water and/or sewer
facilities constituting a physically independent system of the County or any Impact Fees, Special Assessments,
Surcharges, Franchise Fees, Fees in lieu of Franchise Fees, or other receipts and revenue (other than Uniform
Charges) theretofore pledged in connection with the Bonds, if there shall be filed with the Clerk of the Board
of County Commissioners the following:
(1) A certificate of an independent firm of certified public accountants of suitable experience
and responsibility: (i) stating that the books and records of the County relating to the collection and
receipt of the Revenues and the Operating Expenses have been audited by them for the Fiscal Year
immediately preceding the date of the proposed release of such receipts and revenues from the pledge
hereunder or for any twelve (12) consecutive month period out of the eighteen (18) consecutive months
immediately preceding such date; (H) setting forth the Revenues, the Uniform Charges, the Operating
Expenses and the Net Revenues for the audited period referred to in (i) above, with respect to which
such certificate is made; and (iii) stating that the Net Revenues, adjusted to give effect to the proposed
release of such receipts and revenues as if the same has occurred at the beginning of such audited
period, were equal to at least :.20 times the largest amount of principal and interest which will mature
and become due in any Fiscal Year thereafter on all Bonds then outstanding. For purposes of (iii)
above (A) Revenues, Uniform Charges, and Operating Expenses may be further adjusted so as to fairly
represent the operation of the System, provided that the amount and a detailed reason for such adjust-
ment is set forth in such certificate; (B) Net Revenues may also be adjusted for (I) the pro forma effect
of rates implemented prior to the proposed release of such receipts and revenues and (II) new
customers added to the System during the test period; and (C) any amounts owed to the issuer of a
Reserve Account Credit Instrument as a result of a draw thereon, as appropriate, shall be added to the
principal and interest payable on Bonds to determine compliance with the foregoing test;
(2) A certificate of the chief financial officer of the County stating that the County has
established and will maintain a separate accounting of all revenues and expenses in connection with any
such independent system or with respect to such Impact Fees, Surcharges, Special Assessments,
Franchise Fees, Fees in lieu of Franchise Fees, or other receipts and revenues to be released, apart from
the Pledged Funds; and
(3) Written consent of the bond insurer for the Series 1993 Bonds, if the insurance policy for
the Series 1993 Bonds is then in effect.
All or any part of the certificate required under subparagraph (1) above may be rendered by consulting
engineers, consultants, or other persons with requisite knowledge and experience who are not reasonably objected
to by the Bond Insurer.
Pledge of 1989 Special Assessment Revenues
Authorization for 1989 s2We«„"sments,
In accordance with Chapter 125, Florida Statutes, the County entered into an Intergovernmental
Agreement with the City of Sebastian, Florida (the "City') dated February 3, 1987, for the imposition of special
assessments in lieu of impact fees (the "1989 Special Assessments") levied upon certain property, with the consent
of the property owners. Pursuant to Ordinance No. 86.88, and Resolution Nos. 87-142,89-12 and 89.20 of the
County and Ordinance No. 0.87-01, and Resolution Nos. R-87-85, R-89-07 and R-89.12 of the City and in
accordance with the Intergovernmental Agreement (collectively, the "1989 Special Assessment Resolutions") the
County authorized the levy of special assessments against certain real property and provided the procedures
therefor. Under the 1989 Special Assessment Resolutions, the special assessments, were levied against certain
benefitted properties, with the proceeds of the 1989 Special Assessments being used to fund the costs of the
expansion of the County sewage system, including the acquisition and construction of the physically independent
system known as the "North County Wastewater System." In Fiscal Year 1989, the County issued its Series 1989
Special Assessment Bonds, which were refunded by the Series 1993B Bonds. The Series 1989 Special Assessment
Bonds were issued for the purpose of repairing and constructing the North County Wastewater System.
Interest On and Prepayment of the 1989 Special ASSOSSMents
The 1989 Special Assessments were to be paid in 10 equal annual installments with interest thereon.
Pursuant to the terms of the resolutions levying the 1989 Special Assessments, the owner of an assessed property
may prepay the balance of the 1989 Special Assessments due on such property in full at any time. In such event,
such owner must also pay an appropriate interest and/or prepayment charge as determined by the County at
the time of prepayment. The prepayment of a 1989 Special Assessment does not entitle the owner of an assessed
property to a discount for early payment.
The amount of the 1989 Special Assessments originally totaled $6,081,290, of which $1,870,548 were
prepaid prior to the issuance of the Series 1989 Special Assessment Bonds, and of which $3,780,995 has been
paid through the end of the fiscal year ending September 30, 1995, and of which $429,747 remains to be paid
over the next three years.
The historical delinquencies in the payment of the 1989 Special Assessments represent less than 2.5%
of the scheduled principal due. The County collects any delinquent amounts through the County Tax Collector
utilizing the Uniform Method of collecting non -ad valorem assessments procedures provided by law.
All payments and prepayments of 1989 Special Assessments are deposited, as received, into the Revenue
Fund. Substantial prepayments may occur in which case a significant portion of the Series 1993B Bonds may
be subject to redemption prior to maturity. See "SECURITY AND SOURCES OF PAYMENT" - Extra-
ordinary Mandatory Redemption of Series 1993B Bonds" herein.
Pledge of 1990 Special Assessment Revenues
r iyw bnectat Assessments:
In accordance with Chapter 125, Florida Statutes, the County enacted Resolution Nos. 88-100, 88-102,
0103,88-104, and 88-105 on October 11, 1988 (the "Initial 1990 Assessment Resolutions"). The Initial 1990
Assessment Resolutions authorized the levy of special assessments and provided the procedure therefor. Under
the Initial Assessment Resolutions, the special assessments are to be levied against certain properties to be
connected to the System.
On June 1, 1990, the County issued its Series 1990 Special Assessment Bonds, which were refunded by
the Series 19938 Bonds. The Series 1990 Special Assessment Bonds were issued for the expansion of the waste-
water treatment system of the County, including without limitation reimbursement of a portion of the cost of the
acquisition and construction of certain sewer line extensions and the installation of a certain low pressure grinder
pump system in the Rockridge sanitary sewer area of the County to service the immediate and future needs of
the area. In connection therewith special assessments were levied against certain benefitted property (the "1990
Special Assessments").
f the 1990 Soecial Assessmen
The 1990 Special Assessments were to be paid in 120 equal monthly installments with interest thereon.
Pursuant to the terms of the resolutions levying the 1990 Special Assessments, the owner of an assessed property
may prepay the balance of the 1990 Special Assessments due on such property in full at any time. In such event,
such owner must also pay an appropriate interest and/or prepayment charge as determined by the County at
the time of prepayment. The prepayment of the 1990 Special Assessments does not entitle the owner of an
assessed property to a discount for early payment.
The amount of the Series 1990 Special Assessments originally totaled $1,328,250 of which $680,250 were
prepaid prior to the issuance of the County's Series 1990 Special Assessments Bonds, of which $437,540 has been
paid through the end of the fiscal year ending September 30, 1995, and of which $210,460 remains to be paid
over the next three years.
The historical delinquencies in the payment of the 1990 Special Assessments represent less than 2.4%
of the scheduled principal due. The County collects any delinquent amounts through the County Tax Collector
utilizing the Uniform Method of collecting non -ad valorem assessments procedures provided by law.
All payments and prepayments of 1990 Special Assessments are deposited, as received, into the Revenue
Fund. Substantial prepayments may occur in which case a significant portion of the Series 1993B Bonds may
be subject to redemption prior to maturity. See "SECURITY AND SOURCES OF PAYMENT - Extraordinary
Mandatory Redemption of Series 1993B Bonds" herein.
Extraordinary Mandatory Redemption of Series 1993E Bonds
The Series 1993B Bonds are subject to extraordinary mandatory redemption in whole or in part, on any
interest payment date, from moneys received on prepayments of the 1989 Special Assessments and the 1990
Special Assessments, at a redemption price equal to the principal amount due thereon plus accrued interest.
It is possible that substantial prepayments could occur, which result in a significant portion of the Series 19938
Bonds being redeemed prior to maturity. As of September 30,1995, none of the Series 1993B Bonds have been
redeemed as a result of such prepaymeats. See "SECURITY AND SOURCES OF PAYMENT - Pledge of 19139
Special Assessment Revenues" and "SECURITY AND SOURCES OF PAYMENT - Pledge of 1990 Special
Assessment Revenues" herein.
Neither the Series 1993A Bonds nor the Series 1996 Bonds are subject to Extraordinary Mandatory
Redemption from moneys received from prepayments of the 1989 Special Assessments and the 1990 Special
Assessments.
Pledge of 1996 Special Assessment Revenues
On September 29, 1995, the County acquired the water and sewer system within the city limits of the
City of Sebastian, Florida (the "City"), pursuant to the Interlocal Agreement For Transfer of City of Sebastian
Water and Wastewater System (the "Acquisition Agreement") between the County and the City. A major
requirement of the Acquisition Agreement is the City's obligation to enact a three phase assessment program
to serve approximately 9,000 parcels in the Sebastian Highlands at a projected cost of approximately $9,000,000
(the "1996 Special Assessments"). The capital improvements and expansions necessary to serve these additional
parcels are included as part of the Series 1996 Project and are being initially funded with proceeds of the Series
1996 Bonds. As the three phases are the parcels of property that are specifically benefitted, they will be assessed
for the pro -rata share of the costs of the project and the 1996 Special Assessments, as they are imposed, will
become a part of the Revenues pledged to the Bonds. It is anticipated that these assessments will be imposed
by the City of Sebastian over a period of (three] years, with each special assessment having a ten year installment
payment requirement, subject to the right to prepay any such assessments. Any such prepayments will not cause
a corollary prepayment of the Series 1996 Bonds or the Series 1993 Bonds.
Pledge of Older Assessment Re=venues
All Special Assessments levied (if any) in connection with the Series 1996 Projects (see "SERIES 1996
PROJECTS'), and all interest, prepayment charges and penalties in connection therewith received by the County
shall be Revenues under the Master Bond Resolution.
Rate Covenant
The County covenants in the Master Bond Resolution to establish and maintain such Uniform Charges
and, as applicable, such Surcharges, Impact Fees, Special Assessments, Franchise Fees, Fees in lieu of Franchise
Fees in comteclion with the System, and other receipts and revenues pledged under the Master Bond Resolution,
so as to always provide either of the following:
(1) Uniform Charges less Operating Expenses sufficient to pay (a) one hundred percent
(100%) of all required deposits into the Reserve Account, and (b) one hundred twenty percent (120%)
of the amount of principal and interest becoming due in such Fiscal Year on the Bonds outstanding, or
(2) When the Revenues include receipts and revenues in addition to Uniform Charges, Net
Revenues in each F'utcal Year sufficient to pay (a) one hundred percent (100%) of all required deposits
into the Reserve Account, and (b) one hundred twenty percent (120%) of the amount of principal and
interest becoming due in such Fiscal Year on the Bonds outstanding; provided, however, that Uniform
Charges less Operating Expenses are sufficient to pay (a) one hundred percent (100%) of all required
deposits into the Reserve Account, and (b) one hundred percent (100%) of the amount of principal and
interest becoming due in such Fiscal Year on the Bonds outstanding.
Any amounts owed by the County to the issuer of a Reserve Account Credit Instrument as a result of
a draw thereon, as appropriate, shall be added to the principal and interest payable on the Bonds to determine
o mpWnee with this rate covenant.
Reserve Account
The Master Bond Resolution provides for the establishment and maintenance of a Reserve Account
within the Sinking Fund. Upon delivery of the Series 1996 Bonds, the County shall deposit into or credit to the
Reserve Account a sun equal to the difference between the amount on deposit therein and an amount equal
to the lesser of (i) the maximum annual debt service on all the Series 1996 Bonds and the Series 1993 Bonds,
or (ii) one and one-quarter (125%) times the average annual debt service on the Series 1996 Bonds and the
Series 1993 Bonds (the "Reserve Account Requirement"); provided, however, in no event shall such deposit
exceed the maximum amount which would not adversely affect the exclusion of the interest on the Series 1996
Bonds and the Series 1993 Bonds from gross income of the Registered Owners thereof for purposes of federal
income taxation.
Financial Guaranty Insurance Company has agreed to provide a Debt Service Reserve Fund Policy (the
"Reserve Policy") for deposit in the Reserve Account for the Series 1996 Bonds upon delivery of the Series 1996
Bonds. See: "MUNICIPAL BOND INSURANCE - Debt Service Reserve Fund Policy."
Moneys on deposit in the Reserve Account shall be applied in accordance with the provisions of the
Master Bond Resolution solely for the purpose of the payment of the Bonds when the other moneys in the
Sinking Fund are insufficient therefor, and for no other purpose.
No further deposits shall be required to be made into the Reserve Account as long as there shall remain
on deposit therein (including any Reserve Account Credit Instrument) a sum equal to the Reserve Account
Requirement. The value of the Reserve Account, including investments on deposit in the Reserve Account, shall
be determined annually at market on the fust day of the Fiscal Year by an independent firm of certified public
accountants, who may be the accountants for the County, in accordance with generally accepted accounting
principles.
Notwithstanding the foregoing, in lieu of, in whole or in part, the required deposits into the Reserve
Account, the County may cause to be deposited into the Reserve Account any Reserve Account Credit
Instrument meeting the requirements of the Master Bond Resolution.
Moneys in the Reserve Account shall be used only for the purpose of the payment of maturing principal
of or interest on Bonds when the other moneys in the Sinking Fund are insufficient therefor, and for no other
purpose. However, upon the valuation of the Reserve Account in each year, if the moneys applied and allocated
to the Reserve Account (except the investment income thereon) exceed the amount required, such excess may
be withdrawn and released to the County. If the Reserve Account Requirement shall at any time be satisfied
in whole or in part with a qualifying letter of credit and such letter of credit is about to expire or terminate, the
County authorizes and directs the Paying Agent to draw upon such letter of credit prior to its expiration or
termination to the extent required to fully fund the Reserve Account Requirement unless a replacement Reserve
Account Credit Instrument is in place or the Reserve Account is otherwise fully funded in its required amount.
9
Flow of Funds for the Bonds
Under the Master Bond Resolution, the County has covenanted that all Revenues shall upon receipt
thereof be deposited in the "Water and Sewer Revenue Fund" (the "Revenue Fund").
All Revenues on deposit in the Revenue Fund shall be disposed of by the County only in the following
order of priority:
(1) First, the County shall transfer in each month to the Operation and Maintenance Fund the
amount required to be deposited therein to pay the Operating Expenses due or to become due for such
month.
(2) Second, the County shall deposit in each month to a fund to be known as the "Water and
Sewer Revenue Bonds Sinking Fund" (the "Sinking Fund"), one-sixth (1/6th) of such sum as will be
sufficient to pay interest on the Bonds as the same shall become due on the next interest payment date,
together with the amount of any deficiency in prior deposits for interest on Bonds, and one -twelfth
(1/12th) of the principal of Bonds maturing on the next principal payment date with respect to the
Bonds. Such deposits shall take into account the sums, if any, deposited in the Sinking Fund out of
proceeds from the sale of Bonds to pay interest thereon and the reduction in the amount of interest
payable on Term Bonds on the following interest payment date attributable to the purchase and tender
of Term Bonds in lieu of mandatory redemption, if any. In addition, there shall be deposited in the
Sinking Fund amounts sufficient to pay the fees and charges of the Paying Agent.
(3) Third, the County shall deposit into an account in the Sinking Fund to be known as the
'Bond Amortization Account," one -twelfth (1/12th) of the principal of Bonds subject to mandatory call
for redemption on the next principal payment date with respect to the Bonds.
(4) Fourth, the County shall deposit into an account in the Sinking Fund to be known as the
"Reserve Account," a sum sufficient to increase the amount on deposit in the Reserve Account to the
Reserve Account Requirement. Upon the issuance of the Series 1996 Bonds, there shall be on deposit
in the Reserve Account an amount equal to the Reserve Account Requirement.
However, in no Fiscal Year shall Net Revenues in excess of twenty percent (20%) of the
Reserve Account Requirement be required to be deposited in the Reserve Account, except as may be
required by Subsection P or Subsection Y of Section 17 of the Master Bond Resolution, unless principal
and interest on the Bonds have been paid from the Reserve Account or there is a ten percent (10%,)
or more decline in the market value of the Reserve Account. No further deposits shall be required to
be made into the Reserve Account as long as there shall remain on deposit therein, including any
Reserve Account Credit Instrument, a sum equal to the Reserve Account Requirement. The value of
the Reserve Account, including investments on deposit in the Reserve Account, shall be determined
annually at market on the fust day of the Fiscal Year by an independent firm of certified public
accountants, who may be the accountants for the County, in accordance with generally accepted
accounting principles.
Furthermore, the County may at any time and from time to time cause to be deposited in the
Reserve Account a Reserve Account Credit Instrument and cause an appropriate amount to be
withdrawn from the Reserve Account and released to the County.
(S) Fifth, moneys in the Revenue Fund shall be applied to the payment of current debt service
and reserve requirements of any obligations of the County which have a lien on the Pledged Funds
junior and subordinate to the Gen of the Bonds.
10
(6) Sixth, the County may deposit into the "Sewer and Water Renewal and Replacement Fund",
created under the Master Bond Resolution, an amount to be determined by the County to be used only
for the purpose of paying the coats of extraordinary repairs, renewals, replacements, improvements,
extensions and additions with respect to the System.
(7) Seventh, the balance of any moneys remaining may be used by the County for any lawful
purpose; provided, however, during any period in which the Reserve Policy is in effect, the County has
covenanted to withdraw such balance only as of the end of any fiscal year.
No further deposits to the Sinking Fund, the Bond Amortization Account or the Reserve Account shall
be required whey the aggregate sums deposited therein are and remain at least equal to the sum of all of the
principal and interest then due and thereafter and becoming due in all ensuing years for the Bonds then
outstanding.
Additional Parity Bonds
Additional Parity Bonds, payable on a parity with the Bonds from the Pledged Funds ("Additional Parity
Bonds"), may be issued from time to time to finance any portion of the costs of the construction and/or
acquisition of additions, extensions and improvements to the System, or of any physically separate water or sewer
system declared by resolution of the Board of County Commissioners to be part of the System, or for refunding
p
Before issuing any Additional Parity Bonds, there shall have been obtained and filed with the County
a certificate of an independent firm of certified public accountants of suitable experience and responsibility.-
(i)
esponsibility:
(i) stating that the books and records of the County relating to the collection and receipt of
the Revenues, the Uniform Charges and the Operating Expenses have been audited by them for the
Fiscal Year immediately preceding the date of sale of the proposed obligations or for any twelve (12)
consecutive month period out of the eighteen (18) consecutive months immediately preceding the date
of sale of the proposed obligations;
(u) setting forth the Revenues, the Uniform Charges, the Operating Expenses and the Net
Revenues for the audited period referred to in (i) above, with respect to which such certificate is made;
and
(iii) stating that: (a) during such audited period, the County was in compliance with the rate
covenant previously discussed; and (b) the Net Revenues, as adjusted as hereinafter provided, were equal
to at least 1.20 times the largest amount of principal and interest which will mature and become due
in any Fiscal Year thereafter on all Bonds then outstanding, including the proposed Additional Parity
Bonds; amd when the Revenues include receipts and revenues in addition to Uniform Charges, the
Unifomn Charges less Operating Expenses, adjusted as hereinafter provided, were equal to at least 1.00
times the largest amount of principal and interest that will mature and become due in any Fiscal Year
thereafter on all Bonds outstanding, including the proposed Additional Parity Bonds.
For purposes of (iii) above: (A) Revenues, Uniform Charges and Operating Expenses may be adjusted
so as to fairly represent the operation of the System, provided that the amount and a detailed reason for each
such adjustment is set forth in such certificate; (B) Net Revenues also may be adjusted for (i) the pro forma
effect of rates implemented prior to issuance of the Additional Parity Bonds, (ii) new customers added to the
System during the test period, (iii) already existing occupied residences or operating business establishments
which will be connected to the System upon completion of projects under construction or to be funded with bond
proceeds, and (iv) Net Revenues attributable to customers for whom Impact Fees have been paid, and which
will be connected to the System upon completion of projects under construction or to be funded with bond
11
proceeds (provided that so long as the Bond Insurance Policy is in effect, not more than 40% of the Net
Revenues described in this subclause (iv) shall be used as an adjustment under this clause (B) without the
consent of the Bond Insurer); and (C) any amounts owed by the County to the issuer of a Reserve Account
Credit Instrument as a result of a draw thereon, as appropriate, shall be added to the principal and interest
payable thereon on the Bonds to determine compliance with the foregoing test.
Ali or any part of the certificate required under the second paragraph of this subsection may be
rendered by consulting engineers, consultants or other persons with requisite knowledge and experience who are
not reasonably objected to by the Bond Insurer.
Additional Parity Bonds may not be issued at any time while the County is in default in performing any
of the coverrta and obligations under the Master Bond Resolution, or all payments herein required to have
been made into the accounts and funds, as provided under the Master Bond Resolution, have not been made
to the full extent required.
The foregoing conditions shall not apply with respect to Additional Parity Bonds the proceeds of which
will be used to complete a project a substantial portion of the cost of which has been or will be paid out of the
proceeds of Bonds issued under the Master Bond Resolution.
The County has covenanted for the benefit of the Registered Owners of the Bonds issued and
outstanding under the Master Bond Resolution that the County shall, at the time of issuance of any Additional
Parity Bonds, make a deposit to the Reserve Account so that the Reserve Account shall have a value of cash
and investments at such time equal to the lesser of (i) the Reserve Account Requirement (including the
Additional Parity Bonds and giving effect to the retirement of any Bonds being refunded with proceeds of the
Additional Parity Bonds); or (u) the maximum amount as will not adversely affect the exclusion of interest on
the Series 1996 Bonds from the gross income of the holders of the Series 1996 Bonds.
Junior Lks Bonds
The County is authorized to issue obligations other than Bonds payable from the Pledged Funds
provided such obligations are junior and subordinate in all respects to the Bonds as to lien on and source and
security for payment from the Pledged Funds and such obligations contain an express statement to that effect.
ESTIMATED SOURCES AND USES OF FUNDS
Sources:
Principal Amount of Series 1996 Bonds S
Accrued Interest
Original Issue Discount
Uses:
Total Sources $
Deposit to Construction Account S
Deposit o to Sinking
Total Uses S
(1) Includes underwriter's discount and premium for Municipal Bond Insurance Policy and Debt Service
Reserve Fund Policy.
12
MUNICIPAL BOND INSURANCE AND DEBT SERVICE RESERVE FUND POLICY
Bond Insurance
The following information under this heading has been furnished by the Bond Insurer for use in this
Official Statement. Reference is made to Appendix F for a specimen of the Bond Insurer's policy.
Concurrently with the issuance of the Series 1996 Bonds, the Bond Insurer will issue its Municipal Bond
New Issue Insurance Policy for the Series 1996 Bonds (the "Policy"). The Policy unconditionally guarantees the
payment of that portion of the principal of and interest on the Series 1996 Bonds which has become due for
payment, but shall be unpaid by reasons of nonpayment by the County. The Bond Insurer will make such pay-
ments to State Street Bank and Trust Company, NA., or its successor as its agent (the "Fiscal Agent"), on the
later of the date on which such principal and interest is due or on the business day next following the day on
which the Bond Insurer shall have received telephonic or telegraphic notice, subsequently confirmed in writing,
or written notice by registered or certified mail, from an Owner of Series 1996 Bonds or the Paying Agent of
the nonpayment of such amount by the County. The Fiscal Agent will disburse such amount due on any Series
1996 Bond to its Owner upon receipt by the Fiscal Agent of evidence satisfactory to the Fiscal Agent of the
Owner's right to receive payment of the principal and interest due for payment and evidence, including any
appropriate instruments of assignment, that all of such Owner's rights to payment of such principal and interest
shall be vested in the Bond Insurer. The term "nonpayment" in respect of a Series 1996 Bond includes any
payment of principal or interest made to an Owner of a Series 1996 Bond which has been recovered from such
Owner pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in accordance with a final,
nonappealable order of a court having competent jurisdiction.
The Policy is non -cancellable and the premium will be fully paid at the time of delivery of the Series
1996 Bonds. The Policy covers failure to pay principal of the Series 1996 Bonds on their respective stated
maturity dates or dates on which the same shall have been duly called for mandatory sinking fund redemption,
and not on any other date on which the Series 1996 Bonds may have been otherwise called for redemption,
accelerated or advanced in maturity, and covers the failure to pay an installment of interest on the stated date
for its payment.
Generally, in connection with its insurance of an issue of municipal securities, the Bond Insurer requires,
among other things, (i) that it be granted the power to exercise any rights granted to the holders of such
securities upon the occurrence of an event of default, without the consent of such holders, and that such holders
may not exercise such rights without the Bond Insurer's consent, in each case so long as the Bond Insurer has
not failed to comply with its payment obligations under its insurance policy; and (ii) that any amendment or
supplement to or other modification of the principal legal documents be subject to the Bond Insurer's consent.
The specific rights, if any, granted to the Bond Insurer in connection with its insurance of the Series 1996 Bonds
are set forth in the description of the principal legal documents appearing elsewhere in this Official Statement.
Reference should be made as well to such description for a discussion of the circumstances, if any, under which
the County is required to provide additional or substitute credit enhancement, and related matters.
The Policy is not covered by the Property/Casualty Insurance Security Fund specified in Article 76 of
the New York Insurance Law or by the Florida Insurance Guaranty Association.
Debt Senice Reserve Fund Polky
Concurrently with the issuance of the Series 1996 Bonds, Financial Guaranty Insurance Company
(*Financial Gu ranty") will issue its Municipal Bond Debt Service Reserve Fund Policy (the "Reserve Policy).
The Reserve Policy unconditionally guarantees the payment of that portion of the principal of and interest on
the Series 1996 Bonds which has become due for payment, but shall be unpaid by reason of nonpayment by the
County, provided that the aggregate amount paid under the Reserve Policy may not exceed the maximum amount
13
set forth in the Reserve Policy, which maximum amount represents maximum annual debt service on the Series
1996 Bonds. Financial Guaranty will make such payments to the Paying Agent for the Series 1996 Bonds on the
later of the date on which such principal and interest is due or on the business day next following the day on
which Financial Guaranty shall have received telephonic or telegraphic notice subsequently confirmed in writing
or written notice by registered or certified mail from the Paying Agent of the nonpayment of such amount by
the County. The term "nonpayment" in respect of a Series 1996 Bond includes any payment of principal or
interest made to an owner of a Series 1996 Bond which has been recovered from such owner pursuant to the
United States Bankruptcy Code by a trustee in bankruptcy in accordance with a final nonappealable order of a
Court having competent jurisdiction.
The Reserve Policy is non -cancellable and the premium will be fully paid at the time of delivery of the
Series 1996 Bonds. The Reserve Policy covers failure to pay principal of the Series 1996 Bonds on their
respective stated maturity dates, or dates on which the same shall have been called for mandatory sinking fund
redemption, and not on any other date on which the Series 1996 Bonds may have been accelerated, and covers
the failure to pay an installment of interest on the stated date for its payment. The Reserve Policy shall
terminate on the earlier of the food maturity date of the Series 1996 Bonds and the date on which Series 1996
Bonds are no longer outstanding under the Master Bond Resolution, as amended and supplemented.
Generally, in connection with its issuance of a Reserve Policy, Financial Guaranty requires, among other
things, (i) that, so long as it has not failed to comply with its payment obligations under the Reserve Policy, it
be granted the power to exercise any remedies available at law or under the authorizing document other than
(A) acceleration of the Series 1996 Bonds or (B) remedies which would adversely affect holders in the event that
the County fails to reimburse Financial Guaranty for any draws on the Reserve Policy; and (ii) that any amend-
ment or supplement to or other modification of the principal legal documents be subject to Financial Guaranty's
consent. The specific rights, if any, granted to Financial Guaranty in connection with its issuance of the Reserve
Policy are set forth in the description of the principal legal documents appearing elsewhere in this Official
Statement. Reference should be made as well to such description for a discussion of the circumstances, if any,
under which the County is required to provide additional or substitute credit enhancement, and related matters.
The Reserve Policy is not covered by the Property/Casualty Insurance Security Fund specified in Article
76 of the New York Insurance Law.
Itatlop
This Official Statement contains a section regarding the ratings assigned to the Series 1996 Bonds and
references should be made to such section for a discussion of such ratings and the basis for their assignment to
The Series 1996 Bonds. See "RATINGS" herein.
Financial Guaranty Insurance Company
The Bond Insurer is a wholly-owned subsidiary of FGIC Corporation (the "Corporation"), a Delaware
holding company. The Corporation is a subsidiary of General Electric Capital Corporation ("GE Capital").
Neither the Corporation nor GE Capital is obligated to pay the debts of or the claims against the Bond Insurer.
The Bond Insurer is a monoline financial guaranty insurer domiciled in the State of New York and subject to
regulation by the State of New York Insurance Department. As of September 30, 1995, the total capital and
surplus of the Bond Insurer was approximately $994,500,000. The Bond Insurer prepares financial statements
on the basis of both statutory accounting principles and generally accepted accounting principles. Copies of such
financial statements may be obtained by writing to the Bond Insurer at 115 Broadway, New York, New York
10006, Attention: Communications Department (telephone number: (212)312-3000) or to the New York State
Insurance Department at 160 West Broadway, 18th Floor, New York, New York 10013, Attention: Financial
Condition Property/Casualty Bureau (telephone number: (212)602-0389).
14
DEBT SERVICE SCHEDULE
The following table presents the annual debt service requirements of the County for the Series 1993
Bonds and the Series 1996 Bonds:
Year Boding
Series 1993A Bonds
Series 1993B Bonds Series 19% Bonds
Septembw 30.
ml
(nteyes
Pdncioal
Interest Principal Interest !
1996
745,000
2,398,955.00
420,000
91,980.00
1997
770,000
2,371,017.50
420,000
75,810.00
1996
800,000
2,339,255.00
420,000
57,960.00
1999
835,000
2,304,855.00
420,000
39,480.00
2000
875,000
2,267,280.00
420,000
20,160.00
2001
915,000
2,226,155.00
2002
960,000
2,182,235.00
2003
1,005,000
2,134,235.00
2004
1,055,000
2,083,985.00
2005
1,110,000
2,030,180.00
2006
1,170,000
1,972,460.00
2007
1,230,000
1,910,450.00
2008
010,000
1,830,500.00
2009
095,000
1,745,350.00
2010
1,475,000
1,668,625.00
2011
1,555,000
1,587,500.00
2012
1,640,000
1,501,975.00
2013
1,730,000
1,411,775.00
2014
1,825,000
1,316,625.00
2015
1,925,000
1,216,250.00
2016
2,030,000
1,110,375.00
2017
2,135,000
1,003,800.00
2018
2,250,000
891,712.50
2019
2,370,000
773,587.50
2020
2,490,000
649,162.50
2021
2,625,000
518,437.50
2022
2,760,000
380,625.00
2023
2,905,000
235,725.00
2024
1.585.000 83.212.50
Total 545,475,000544,146300.00 $2,100,000 5285,390.00
THE SYSTEM
neral
The County's water and sewer system consists of all water and sewer systems now owned and operated
by the County, together with any and all improvements, extensions and additions thereto hereafter constructed
or acquired, and any physically independent water or sewer system hereafter made a part of the System by
resolution of the Board of County Commissioners, together with any and all improvements, extensions and
additions thereto, thereafter constructed or acquired. The System includes all property, real, personal and mixed,
rights, powers, licenses, easements, rights of way, privileges, franchises and all other property or interests in
property of whatsoever nature, including but not limited to vehicles, rolling stock, buildings, pipes, pumps,
machinery, tanks, mains, conduits, meters and other equipment, used or useful in connection with ownership,
15
operation and maintenance of such water or sewer systems by the County. The System provides water and sewer
services to a portion of the County's population, with a majority of the other County residents being serviced by
private wells and septic tanks and the City of Vero Beach, Florida, which operates its own water and sewer
systema.
The County presently operates two reverse osmosis water treatment plants, the south County plant
("South County Plant") and the North Beach plant ("North Beach Plant"). The water plants have a present
nominal capacity of 9.5 million gallons per day ("MGD"). The County has expanded its production capacity for
the South County Plant to 8.5 MGD. On November 1, 1990, the County consummated the purchase of the
business and assets of the North Beach Water Company consisting of the North Beach Plant (with a reverse
osmosis treatment capacity of 500,000 gallons per day) and a distribution system in the northern portion of the
County ('North Beach Water System"). The North Beach Plant has been expanded to a total capacity of 1
MGD. The County is designing and permitting a 3 MGD North County Reverse Osmosis Water Treatment
Plant for construction within the next eighteen (18) months. The County currently operates over 406 miles of
size 2" to 30" water distribution mains. The County is currently conducting a very aggressive assessment
expansion program of the water system to serve approximately 7,000 one-half acre or less lots located in the
County service area, and has completed construction of water lines to serve 6,405 of these lots.
Presently, wastewater treatment and disposal service in the unincorporated portions of the County is
provided by approximately 16 wastewater plants. Nine of these plants with an aggregate 4.83 MGD of treatment
capacity are owned and operated by the County. Of the facilities owned and operated by the County, the four
largest account for nominal capacity of 3.85 MGD in the aggregate. The remaining five treatment plants, in the
aggregate, account for additional capacity of approximately .885 MGD. The County also has the right to have
treated up to 1.39 MGD at the municipally owned City of Vero Beach wastewater treatment plant. The County
is currently expanding its West Regional Wastewater Plant from 1 MGD to 2 MGD. The expansion is scheduled
to be completed by April, 1996. The County has constructed a 180 acre wetland for effluent disposal treatment,
adjacent to the West Regional Wastewater Plant. The wetland is designed for 6.0 million gallons per day (MGD)
effluent disposal treatment capacity with an initial permitted disposal treatment capacity of 2.0 MGD. The
County is expanding each of the three largest plants from a treatment capacity of 1 MGD to a capacity of 2
MGD, with the completion of such expansion expected in 2 years. The County currently owns and operates over
241 miles of size 3" to 24' wastewater collection system mains.
The County's Regional Sludge Facility opened August 4, 1993. The Facility was needed to meet the
County's immediate and future needs for the treatment and disposal of sludge (the solid or semi-solid residual
by-product of the wastewater treatment plant process), septage (the liquids and solids removed from domestic
septic tanks and portable toilet facilities), and grease (the material taken from commercial grease traps typically
found at food processing facilities and restaurants).
A grant (the "Grant") from the Florida Department of Environmental Protection ("FDEP") and the
Environmental Protection Agency ('EPA") was used to pay a portion of the costs relating to the Regional Sludge
Facility. The final amount of the Grant has been reviewed and approved by FDEP and EPA. The County has
received $2,082,196.00 in grant funds through September, 1995.
system Starr
The System presently employs 109 persons. The System is managed by Terrance G. Pinto, Director of
Utilities. It is the opinion of management that the System enjoys excellent labor relations.
16
Water and Sewer Customers
The number of County water and sewer customers, expressed as the number of equivalent residential
units ('ERUe), for the years 1986.95 is set forth below:
Year Ended 9/30 Water ERUs Sewer ERUs
1986
9,827
8,824
1987
11,193
9,339
1988
12,005
9,552
1989
15,187
13,618
1990
17,615
16,874
1991
21,886
22,574
1992
23,136
24,172
1993
24,067
24,505
1994
25,590
24,999
1995
27,124
25,424
INDIAN RIVER COUNTY
DEPARTMENT OF UTILITY SERVICES
HIGH VOLUME CUSTOMERS
Fiscal Year 1995
WATER* SEWER'
Village Green MHP
31,865
31,865
ACOS, Inc.
22,621
22,621
Disney's Vero Beach Resort
9,806
9,806
Indian River County Jail
8,711
8,711
Holiday Inn
7,920
7,920
Indian River Village Care Center
7,146
7,146
Inn Vero
6,863
6,863
• Annual Volume in Million Gallons
The County moved 1,172 million gallons of water and 774 million gallons of wastewater in Fiscal Year
1995, the high volume customers accounted for 9.7% of total annual volume.
17
INDIAN RIVER COUNTY
DEPARTMENT OF UTILITY SERVICES
TOP 10 CUSTOMERS OF WATER AND SEWER BY REVENUE
CUSTOMERS WATER REVENUE SEWER REVENUE
Village Green MHP
$146,257
$221,332
ACr S. Inc.
114,118
195,540
Disney's Vero Beach Resort
69,404
16,173
Was of Vero
43,076
64,270
River Run
29,068
33,234
Holiday Inn
28,684
38,404
Indian River County Jail
26,859
35,190
Indian River Village Care Center
15,320
20,873
Wal-Mart Stores
8,572
12,506
Inn Vero
5,215
6,987
The following table compares average daily flow versus peak daily flow for both water and sewer for
the past five years.
• Volume in Million Gallons
Rate Suvetme
Historically, the County's rates for water and sewer service have been sufficient to meet the applicable
rate covenants, with respect to the County's obligations under the Master Bond Resolution. The rates for the
System are projected to be sufficient through Fiscal Year 1996 to comply with the rate covenant for the Series
1996 Bonds. The System has rates for both residential and commercial classes of customers.
In September 1991, the County passed a rate resolution (Resolution No. 91-145), adopted pursuant to
the authority of Ordinance 91.9, which established water and wastewater rates for the years 1991, 1992 and 1993,
and which were then to remain in effect until further amended. These rates remain effective as of the date
hereof and the County has no present plea to increase such rates. The basis for Resolution 91-145 was a'Water
and Waste Water Fee & Rate Study" (the "Study"), dated September 1991, prepared by the County's Consulting
Engineer. The Study investigated the annual coat of operating and maintaining the water and wastewater systems
and recommended rates, charges and policies which are both sufficient to recover these coats and equitable to
the allocation of these costa to the different user classes. The analysis also included anticipated capital
improvements for the period covered by the Study.
18
INDIAN RIVER COUNTY
DEPARTMENT OF UTILITY SERVICES
AVERAGE DAILY FLOW VS. PEAK DAILY FLOW
Water* Sewer*
Year Ended 9/30
Annual Average Annual Peak Annual Average
Annual Peak
Daily Flow Daily Flow Daily Flow
Daily Flow
1991
2.79 3.10 1.34
1.90
1992
2.84 3.30 1.40
1.89
1993
3.23 4.10 1.79
2.59
1994
3.47 4.60 2.37
3.30
1995
3.48 4.40 2.41
2.80
• Volume in Million Gallons
Rate Suvetme
Historically, the County's rates for water and sewer service have been sufficient to meet the applicable
rate covenants, with respect to the County's obligations under the Master Bond Resolution. The rates for the
System are projected to be sufficient through Fiscal Year 1996 to comply with the rate covenant for the Series
1996 Bonds. The System has rates for both residential and commercial classes of customers.
In September 1991, the County passed a rate resolution (Resolution No. 91-145), adopted pursuant to
the authority of Ordinance 91.9, which established water and wastewater rates for the years 1991, 1992 and 1993,
and which were then to remain in effect until further amended. These rates remain effective as of the date
hereof and the County has no present plea to increase such rates. The basis for Resolution 91-145 was a'Water
and Waste Water Fee & Rate Study" (the "Study"), dated September 1991, prepared by the County's Consulting
Engineer. The Study investigated the annual coat of operating and maintaining the water and wastewater systems
and recommended rates, charges and policies which are both sufficient to recover these coats and equitable to
the allocation of these costa to the different user classes. The analysis also included anticipated capital
improvements for the period covered by the Study.
18
Ali rates and charges developed in the Study were based upon what is generally referred to as a cost
of service approach to utility rate design. Under this approach, customers of each class are assessed rates and
charges for units of service which are equal to the cost of providing water and wastewater service to the average
customer of each class. Thus, all customers pay their fair share of the System cost and no customer class
subsidizes any other customer class. The Study was conducted on the assumption that the System will continue
to operate as a separate enterprise, neither subsidizing any other branch of County government nor receiving
any subsidy. The cost of service approach is endorsed by the American Waterworks Association, the American
Public Works Association, the American Society of Civil Engineers, and the Water Pollution Control Federation.
The water and sewer charges for Fiscal Years 1991 through 1995 are set forth below.
MSTORICAL RATE STRUCTURE
Fiscal Year Ended September 30
WATER RATES 1991 1992 1993 19944 1M
Baling Charge 52.00 $2.00 $2.00 $2.00 $2.00
Base Facilities Charge (per ERU) 6.20 8.70 9.20 9.20 9.20
Where lines Are Available
Volume Charge per 1,000 gallons (per ERU) -
0.3,000 gallons, 1.75 1.75 1.75 1.75 1.75
3,001-7,000 gallons 2.15 2.15 2.15 2.15 2.15
7,001 gallons and over 2.55 2.55 2.55 2.55 2.55
Excess Volume Surcharge - Greater than
13,000 gallons per month (per ERU) 1.95 2.10 2.30 2.30 2.30
Base Facility Charge Where Capacity Is
Reserved But Lines Are Not Yet
Available - Per ERU 3.10 4.35 4.60 4.60 4.60
SEWER RATES
Billing Charge 2.00 2.00 2.00 2.00 2.00
Base Facility Charge Where Lines Are
Available - Per ERU 7.60 13.00 13.50 13.50 13.50
Volume Charge - 85% of water use 3.35 3.35 3.35 3.35 3.35
Excess Volume Surcharge - Greater than
11,000 gallons per month (per ERU) 3.70 4.05 4.45 4.45 4.45
Base Facility Charge Where Capacity Is
Reserved But Lines Are Not Yet
Available - Per ERU 3.80 6.50 6.75 6.75 6.75
In addition to the charges shown above, users of the North Beach Water System and the Sea Oaks
Sewer System are subject to a $13 per ERU per month surcharge ("North Beach Water Surcharge" and the "Sea
Oaks Wastewater Surcharge). The North Beach Water Surcharge generated approximately $231,267 in revenues
in the County's Fiscal Year ended September 30, 1995. Also, the Sea Oaks Wastewater Surcharge generated
approximately $181,849 in revenues in the Fiscal Year ended September 30,1995.
19
The County also receives additional Revenues for use of the Regional Sludge Facility from generators
of sludge and septage wastes and owners of grease traps. For Fiscal Year 1995, the County charged tipping fees
of 57.39 per ton of septage or sludge waste delivered to the System, and generated tipping fees of approximately
$159,034.
The following table presents a comparison of water and wastewater bills of hypothetical single-family
residential customers using 10,000 gallons of water per month with 5/8 -inch meter for various governmental
entities, including the County. The following table compares the County's current charges for the System with
typical water and sewer bills of other county utility systems.
COMPARISON OF MONTHLY
SINGLE FAMILY WATER AND WASTEWATER BILLS
Rates as of March, 1995'
• Unless otherwise noted, amounts shown reflect standard residential and commercial rates in effect
during March 1995 and are exclusive of taxes or franchise fees, if any and reflect rates charged for inside the city
service. All rates are as reported by the respective utility. This comparison is intended to show comparable
charges for similar service for comparison purposes only and is not intended to be a complete listing of all rates
and charges offered by each listed utility.
Selected Flas ictal Data
The following tables set forth selected historical financial data for the System for the Fiscal Years ended
September 30, 1991 through September 30, 1995, and projected financial data for Fiscal Years ended September
30, 1996 through September 30, 2000. The historical data has been derived from the Water and Sewer System
Fund and is a summary of the audited financial statements for Fiscal Years ended September 30, 1991 through
September 30,1995, and the projected fmancial data was prepared by the County's Utility Department based
on budget projections.
(Remainder of page intentionally left blank.]
Kil
Water
Wastewater
Total
Charge
Charge
Charge
Pasco County
$24.65
$31.69
$54.34
Collier County
31.70
29.90
61.60
Brevard County
19.49
41.93
61.42
St. Lucie County
28.91
41.01
69.92
Hillsborough County
25.20
49.00
74.20
Indian River County
32.70
43.98
76.68
Lee County
29.90
51.50
81.40
Sarasota County
35.67
64.04
99.71
• Unless otherwise noted, amounts shown reflect standard residential and commercial rates in effect
during March 1995 and are exclusive of taxes or franchise fees, if any and reflect rates charged for inside the city
service. All rates are as reported by the respective utility. This comparison is intended to show comparable
charges for similar service for comparison purposes only and is not intended to be a complete listing of all rates
and charges offered by each listed utility.
Selected Flas ictal Data
The following tables set forth selected historical financial data for the System for the Fiscal Years ended
September 30, 1991 through September 30, 1995, and projected financial data for Fiscal Years ended September
30, 1996 through September 30, 2000. The historical data has been derived from the Water and Sewer System
Fund and is a summary of the audited financial statements for Fiscal Years ended September 30, 1991 through
September 30,1995, and the projected fmancial data was prepared by the County's Utility Department based
on budget projections.
(Remainder of page intentionally left blank.]
Kil
SUMMARY OF HISTORICAL REVENUES OF THE SYSTEM
Fiscal Year Ended September 30,
(thousands of dollars)
Uniform Charge Revenues:
Water Sales $3,341 $4,536 $5,039 $5,377
Sewer Sales 2,829 5,347 5,827 6,283
Other Uniform Charges --& W" 978 LZH
Total Uniform
Charge Revenues
Septage/Sludge
Surcharges
Interest Earnings
1989/1990 Special
Asse ments(4)
Gross Revenues
Direct Expense( )
Net Revenues Available
for Debt Service
Annual Debt Service
Debt Service Coverages)
Debt Service Coverage(6)
1995
$5,731
6,500
1.117
$6,726
$10,7122)
$11,844
$12,898
$13,348
10
49
159
331
260
238
242
231
995
829
1,525
1,575
1,742
0
0
1.600
_645
385
1801
15 217
$1_
15
�.
6.148
6.532
7.332
6.747
�.�.¢
1=
I8.685
$ 8.077
12.M
1,303
1,366
2,419
3,681
3,672
2.01x
4.14x
3.59x
2.19x
2.48x
lag
M52
2131
1.94x
M
(1) Excludes Depreciation, Amortization and nonrecurring events.
(2) The increase in Revenues is attributable to a large increase in the number of new customers and a
significant rate increase which was implemented on October 1, 1991. The number of water customers
increased 5.7% from Fiscal Year 1991 to Fiscal Year 1992, and the number of sewer customers
increased 7.07° from Fural Year 1991 to Fiscal Year 1992.
(3) The increase in Revenue retlects an increase in water and sewer rates which took effect on October 1,
1992.
(4) With the issuance of the Series 1996 Bonds, the definition of Revenues in the Master Bond Resolution
has been changed to include the 1996 Special Assessments; amounts to be derived therefrom are not
included in these figures.
(5) Based on Gross Revenues less Direct Expense.
(6) Based on Uniform Charge Revenue and Interest Earnings less Direct Expense.
21
Mr
s
Net Revenues Available
for Debt Service
SUMMARY OF PROJECTED REVENUES OF THE SYSTEM
510_524
lum
Fiscal Year Ended September 30,
1 4
Annual Debt Service(1)
$4,617
$6,174
(thousands of dollars)
$6,136
$6,119
Debt Service Coverage(2)
ms
170xx
1,86x
Uniform Charge Revenue $15,172
$16,187 $17,250
$18,847
$20,576
Septage/Sludge
192
192 192
192
192
Surcharges
Interest Earnings
235
1,800
235 235
1,800 1,800
235
1,800
235
1,800
Special Asaeaaments;Q
2-2 2_638
3_045
2601
Gross Revenues
tl
S2"1 2211
2411q
4q
Direet Expense
510_071
$10.092 S10.646
.� 11 a
197
Net Revenues Available
for Debt Service
S 7_678
510_524
lum
S12.651
1 4
Annual Debt Service(1)
$4,617
$6,174
$6,158
$6,136
$6,119
Debt Service Coverage(2)
ms
170xx
1,86x
I'm
Debt Service Coverage(3)
1-423
1,28x
1.NX-
J&
(1) Includes estimated debt service for the Series 1996 Bonds.
(2) Based on all Gross Revenues less Direct Expenses.
(3) Based on Uniform Charge Revenue and Interest Earnings less Direct Expenses.
The County also receives Impact Fees in connection with the System. Impact Fees are not pledged as
a security for the Bonds. While the County may pledge the Impact Fees in the future, the County presently has
no intention to pledge Impact Fees as security for the Bonds. Impact Fees for the last five Fiscal Years ended
September 30 are as follows:
Brat Year
1991
1992
1993
1994
1995
SJ'aksn Analysis Summary
Impact Fees (000'x)
5,287
1,775
2,407
3,476
3,938
Wats► - The County currently operates two Reverse Osmosis (RO) water treatment plants with a 9.67
million gallons per day (MGD) total nominal capacity. The County is in design and permitting for construction
of a 3.0 MGD North County RO Water Treatment Plant. The County currently has 9 wells into the Floridian
Aquifer and is constructing 3 additional wells to supply water to the North County RO Plant. Withdrawals from
the aquifer are regulated by the St. Johns Water Management District. The County is in compliance with all
state and federal guidelines at its water treatment facilities. Water loss for 1995 was low (5%). The current 9.67
MOD water treatment capacity plus the 3.0 MGD proposed North County RO Plant capacity will provide
adequate water capacity to the year 2002.
Sew► - The County owns and operates nine wastewater secondary treatment plants. The four largest
planta are designated as regional plants (North, Central, South, and West) and account for a nominal capacity
of 3.85 MGD in the aggregate. The County is currently completing a 1.0 MGD expansion of its West Regional
Treatment Plant. The expansion is scheduled for completion by April, 1996. Another 1.39 MGD capacity is
allocated to the County at the Vero Beach Wastewater Plant. The County's South Regional Treatment Plant
is in design and permitting for an additional 1.150 MOD expansion and is projected to receive bids for the
project in September, 1996. The County's Central Treatment Plant is in design and permitting for an additional
1.0 MOD of capacity.
The County has constructed a 180 acre wetland for effluent disposal treatment adjacent to the West
Regional Treatment Plant. The wetland is designed for 6.0 MGD effluent disposal treatment capacity with an
initial permitted disposal capacity of 2.0 MGD.
Effluent is total reuse by spray irrigation onto golf courses.
After the current planned expansions of the systems represented by the Series 1996 Projects to be funded
with the Series 1996 Bonds, the system capacity is projected by the County to be adequate to the year 2003.
The County is in compliance with all state and federal guidelines at its wastewater facilities. Infiltration
into the system would be rated as low.
The County has an ordinance for industrial pretreatment and mandatory hookup requirements.
Swmaasry - In summary, as previously outlined, the currently planned plant expansions will supply
projected plant capacity requirements for water until 2002 and sewer until 2003.
The plant expansions will generate an estimated $44.8 M in impact fee revenues, which will provide
capital funding for future expansion requirements.
[remainder of page intentionally left blank]
9
The following table shows the County's proposed five year capital improvement plan for water and sewer
projects. The table includes some projects already under construction. The plan is subject to revision at any
time by the County.
PrS1Ject Description
Water Production Improvements
Water Distribution Improvements
Wastewater Collection Improvements
Wastewater Treatment Improvements
TOTAL
Funding Source
Utility Revenue Bonds(1)
Water and Sewer Impact Fee Funding
TOTAL
Capital Projects
Funding of Capital Projects
(1) This amount includes the Series 1996 Bonds
SERIES 19% PROJECT'S
Anticipated Project Cost
$11,420,000
15,845,000
9,894,750
12,500,000
$49,659,
Anticipated Amounts
$33,630,000
16.029.750
$49,659,
The proceeds of the Series 1996 Bonds are being used to finance the costs of acquisition, construction
and equipping of certain capital projects consisting of additions, extensions, and improvements to the System
required to increase System capacity and meet projected growth as may be determined by the County from time
to time. These improvements generally follow the System Master Plan adopted by the County on March 30,
1993, subject to changes required to satisfy growth needs and the unanticipated capital needs resulting from the
acquisition of a water and wastewater system from the City of Sebastian. The Series 1996 Projects at this time
include, but are not limited to, the following water and wastewater projects, which projects may be subsequently
changed or omitted by the County, together with such other capital projects as may be subsequently designated
by the County from time to time:
Water PmJects
1. The design and construction of a three (3) million gallon per day (MGD) North County Reverse
Osmosis Water Treatment Plant, including well field and brine line with a projected cost of
$9100011100.
2. The design and installation of 22,000 linear feet of master -planned water transmission line along 26th
Street to provide additional service and system looping at an approximate cost of $1,000,000.
3. Reimbursement to the County of the costs of acquisition (including tie in costs) of the City of
Sebastian water and wastewater utility system in the approximate amount of $5,000,000.
24
4. A major requirement of the City of Sebastian Acquisition Agreement is the City's obligation to enact
a three phase assessment program to serve approximately 9,000 parcels in the Sebastian Highlands
at a projected cost of approximately $9,000,000. As the three phases are the parcels of property that
aro specifically beaefrtted, they will be assessed for the pro -rata share of the costs of the project and
the assessments will become a part of the revenues pledged to the Series 1996 Bonds.
1. The expansion of the South County Wastewater Treatment Plant to provide an additional 1.150
MGD of wastewater treatment capacity at an approximate cost of $6,500,000.
2 The expansion of the Central Wastewater Treatment Plant to provide an additional 1.0 MGD of
wastewater treatment capacity at an approximate cost of $6,000,000.
3. The design and construction of approximately 10,700 linear feet of sewer force main along County
Road 510 to connect the North Beach sewer collection system to the mainland collection system and
to provide service to the developments along County Road 510 at an approximate cost of $1,500,000.
4. The design and construction of approximately 18,100 linear feet of force main and a regional
wastewater pumping station to interconnect the North County Wastewater Treatment Plant and the
Central Wastewater Treatment Plants at an approximate cost of $630,000.
Combined System
Overall, the County's goals and objectives are to design/construct new water and wastewater facilities
as required in the Comprehensive Plan in the Utilities Master Plan to provide potable water and wastewater
service to the greatest number of new customers as possible. The goals and objectives include expanding the
existing water and wastewater facilities to serve additional developments, evaluate existing facilities and renovate
as needed to improve service to existing customers, continue to acquire existing water and wastewater franchise
utilities and create assessment districts to provide water and wastewater services to undersized lots throughout
the County. Based on County Ordinance 91-09, it is the County's opinion that the water and wastewater rates
that have been adopted are sufficient to provide the funds to complete the projects as specifically described above
without increasing rates in the next several years. In the future, as the County pursues the goals and objectives
that are dumbed in this paragraph, it may be required to implement water and wastewater rate increases as
the County funds additional projects.
LITIGATION
In the opinion of the County Attorney, no legal proceedings are pending or threatened that materially
affect the County's ability to perform its obligations to the holders of the Series 1996 Bonds or that materially
affect the fuiancial condition of the System.
In the opinion of the County Attorney, there is no litigation or controversy of any nature now pending
or, to the County's knowledge, threatened to restrain or enjoin the issuance, sale, execution or delivery of the
Serio 1996 Bonds or in any way contesting the validity of the Series 1996 Bonds or any proceedings of the
County taken with respect to the authorization, sale or issuance of the Series 1996 Bonds or the pledge or
application of any moneys provided for the payment of the Series 1996 Bonds.
25
TAX EXEMPTION
The Internal Revenue Code of 1986, as amended (the "Code") establishes certain requirements which
must be met subsequent to the issuance and delivery of the Series 1996 Bonds in order that interest on the Series
1996 Bonds be and remain excluded from gross income for purposes of federal income taxation. Non-compliance
may cause interest on the Series 1996 Bonds to be included in Federal gross income retroactive to the date of
issuance of the Series 1996 Bonds, regardless of the date on which such non-compliance occurs or is ascertained.
These requirements include, but are not limited to, provisions which prescribe yield and other limits within which
the proceeds of the Series 1996 Bonds and the other amounts are to be invested and require that certain
investment earnings on the foregoing must be rebated on a periodic basis to the Treasury Department of the
United States. The County has covenanted in the Resolution to comply with such requirements in order to
maintain the exclusion from Federal gross income of the interest on the Series 1196 Bonds.
In the opinion of Bond Counsel, assuming compliance with the aforementioned covenants, under existing
laws, regulations, judicial decisions and rulings, interest on the Series 1996 Bonds is excluded from gross income
for purposes of Federal income taxation. Interest on the Series 1996 Bonds is not an item of tax preference for
purposes of the Federal alternative minimum tax imposed on individuals or corporations; however, interest on
the Series 1996 Bonds may be subject to the alternative minimum tax when any Series 1996 Bond is held by a
corporation. The alternative minimum taxable income of a corporation must be increased by 75% of the excess
of such corporation's adjusted current earnings over its alternative minimum taxable income (before this
adjustment and the alternative tax net operating loss deduction). "Adjusted Current Earning" will include interest
on the Series 1996 Bonds, The Series 1996 Bonds and the income therefrom are exempt from taxation under
the laws of the State of Florida except as to estate taxes and taxes imposed by Chapter 220, Florida Statutes, as
amended, on interest, income or profits on debt obligations owned by corporations, banks and savings
associations.
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 Series 1996
Bonds. Prospective purchasers of Bonds should be aware that the ownership of Series 1996 Bonds may result
in collateral Federal income tax consequences, including (i) the denial of a deduction for interest on indebtedness
incurred or continued to purchase or carry Series 1996 Bonds, (ii) the reduction of the loss reserve deduction
for property and casualty insurance companies by 15% of certain items, including interest on the Series 1996
Bonds, (w) for taxable years beginning before January 1, 1996, the inclusion of interest on Series 1996 Bonds
in 'modified alternative minimum taxable income" for purposes of the environmental tax imposed on corpora-
tions, (iv) the inclusion of interest on the Series 1996 Bonds in earning of certain foreign corporations doing
business in the United States for purposes of a branch profits tax, (v) the inclusion of interest on Series 1996
Bonds in passive income subject to Federal income taxation of certain Subchapter S corporations with Subchapter
C earnings and profits at the close of the taxable year, and (vi) the inclusion of interest on the Series 1996 Bonds
in "modified adjusted gross income" by recipients of certain Social Security and Railroad Retirement benefits for
purposes of determining whether such benefits are included in gross income for Federal income tax purposes.
PURCHASE, OWNERSHIP, SALE OR DISPOSITION OF THE SERIES 1996 BONDS AND THE
RECEIPT OR ACCRUAL OF THE INTEREST THEREON MAY HAVE ADVERSE FEDERAL TAX
CONSEOUENCES FOR CERTAIN INDIVIDUAL AND CORPORATE BONDHOLDERS. PROSPECTIVE
BONDHOLDERS SHOULD CONSULT WITH THEIR TAX SPECIALISTS FOR INFORMATION IN THAT
REGARD.
During recent years legislative proposals have been introduced in Congress, and in some cases enacted,
that altered attain Federal tax consequences resulting from the ownership of obligations that are similar to the
Series 1996 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 1996 Bonds. From time to time, legislative proposals are pending which could
26
have an effect on both the Federal tax consequences resulting from ownership of Series 1996 Bonds and their
market value. No assurance can be given that legislative proposals will not be introduced or enacted that would
or might apply to, or have an adverse effect upon, the Series 1996 Bonds.
Tax Treutita nt of Original Issue Discount
Under the Code, the difference between the maturity amounts of the Series 1996 Bonds maturing in the
years _ through _ and and 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 price a substantial
amount of Series 1996 Bonds of the same maturity was sold is "original issue discount." Original issue discount
will accrue over the term of the such Series 1996 Bonds at a constant interest rate compounded periodically.
A purchaser who acquires such Series 1996 Bonds in the initial offering at a price equal to 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 he holds such Series
1996 Bonds, and will increase his adjusted basis in such Series 1996 Bonds by the amount of such accruing
discount for purposes of determining taxable gain or loss on the sale or other disposition of such Series 1996
Bonds. The federal income tax consequences of the purchase, ownership and redemption, sale or other disposi-
tion of Series 1996 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 such Series 1996 Bonds should consult
their own tax advisors with respect to the precise determination for federal income tax purposes of interest
accrued upon We, redemption or other disposition of Series 1996 Bonds and with respect to the state and local
tax consequences of owning and disposing of Series 1996 Bonds.
RATINGS
Moody's Investors Service and Standard & Poor's Ratings Group have assigned ratings of "Aaa" and
"AAA", respectively, to the Series 1996 Bonds, with the understanding that, upon delivery of the Series 1996
Bonds, the municipal bond insurance policy will be issued by Financial Guaranty Insurance Company. Such
ratings reflect only the views of such organizations and any desired explanation of the significance of such ratings
should be obtained from the rating agency furnishing the same, at the following addresses; Moody's Investors
Service, Inc., 99 Church Street, New York, New York 10007; Standard & Poor's Ratings Group, 25 Broadway,
New York, New York 10004, Generally, a rating agency bases its rating on the information and materials
furnished to it and on investigations, studies and assumptions of its own. There is no assurance such ratings will
continue for any given period of time or that such ratings will not be revised downward or withdrawn entirely
by the rating agencies, if in the judgment of such rating agencies, circumstances so warrant. Any such downward
revision or withdrawal of such ratings may have an adverse effect on the market price of the Series 1996 Bonds.
DISCLOSURE PURSUANT TO SECTION 517.051, FLORIDA STATUTES
Pursuant to Section 517.051, Florida Statutes, as amended by Chapter 87-316, Laws of Florida, 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 Rule 3E 400.003,
Florida Administrative Code, the Department has required the disclosure of any 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 Series 1996 Bonds do not constitute a general debt, liability or obligation of the County, but are
instead secured by the Pledged Funds and by other security discussed herein. The Series 1996 Bonds are not
being offered on the basis of the financial strength of the County. Accordingly, the County, in good faith,
believes that disclosure of any such default on bonds with respect to which the County was merely a conduit
27
issuer and which are secured solely by payments of the borrower under a loan agreement, lease agreement or
installment We agreement, would not be considered material by a reasonable investor. Accordingly, the County
has not taken affirmative steps to contact the various trustees of conduit bond issues of the County to determine
the existence of prior defaults.
Notwithstanding the foregoing, the County is not, and since December 31, 1975 has not been, in default
as to principal of and interest on bonds or other debt obligations for which either ad valorem or non ad valorem
revenues of the County (other than revenues received from conduit borrowers) are pledged.
FINANCIAL STATEMENTS
The general purpose financial statements and the excerpts from the Comprehensive Annual Financial
Report of the County for the Fiscal Year ended September 30, 1995, included as Appendix B to this Official
Statement, have been audited by Berger/Harris/Toombs/Elam & McAlpin, Vero Beach, Florida, as independent
auditors, as stated in their report also included in Appendix B, and are an integral part of this Official Statement.
UNDERWRITING
The Series 1996 Bonds are being purchased by William R. Hough & Co. and Smith Barney Inc.
(collectively, the'Underwritere), subject to certain terms and conditions set forth in a bond purchase agreement
between the County and the Underwriters, including the approval of certain legal matters by Bond Counsel and
the existence of no material change in the affairs of the County from those set forth in this Official Statement.
The aggregate purchase price payable by the Underwriters is $ (par amount of the Series
1996 Bonds net of original issue discount of S and underwriters' discount of S ) plus
accrued interest on the Series 1996 Bonds from 1, 1996 to the date of delivery of the Series 1996 Bonds.
The Series 1996 Bonds are offered for We to the public at the price set forth on the cover page of this Official
Statement. The Series 1996 Bonds may be offered and sold to certain dealers at prices lower than such offering
prices, and such public offering prices may be changed, from time to time, by the Underwriters.
APPROVAL OF LEGALITY
Certain legal matters incident to the authorization, issuance, sale, and delivery of the Series 1996 Bonds,
and the treatment of the interest thereon for federal income tax purposes, are subject to the approval of Bryant,
Miller and Olive, PA., Tallahassee, Florida, Bond Counsel, whose approving opinion in substantially the form
attached hereto as Appendix E will be printed on all of the Series 1996 Bonds. In its capacity as Disclosure
Counsel, Bryant, Miller and Olive, PA. has participated in the preparation of this Official Statement and has
been retained by the County to pass upon this Official Statement. Certain legal matters will be passed upon for
the County by the County Attorney, Charles P. Vitunac, Vero Beach, Florida.
INVESTMENT POLICY
Pursuant to the requirements of Section 218.45, Florida Statutes, on September 5, 1995, the County
adopted a written investment policy which applies to all surplus monetary assets of the Board of County
Commissioners except 1) debt proceeds, which are governed by bond documents, 2) demand deposits covered
by banking agreements, and 3) monetary assets held by other entities on behalf of the Board of County
Commissioners.
The purpose of the investment policy is to establish guidelines for the investment of those surplus
monetary assets in such a manner as to preserve the safety and liquidity of those funds and to provide a
competitive return on investments consistent with proper safeguards for the handling of government funds. In
28
addition, the polity provides a set of procedures and guidelines for investment selection, monitoring of invested
funds, prudence amd ethical standards, maturity and liquidity requirements, portfolio composition, risk and
diversification, bid requirements, and internal controls.
The investment policy limits the securities eligible for inclusion in the County's portfolio. Derivatives,
reverse repurchase agreements, and similar forms of leverage are prohibited. To maintain liquidity, investments
are matched with projected cash flow needs. No more than 25% of the portfolio may be invested in instruments
with stated maturities greater than 5 years but less than 15 years.
ADVISORS AND CONSULTANTS
The County has retained certain advisors and consultants in connection with the issuance of the Series
1996 Bonds. Thele; advisors and consultants are compensated from a portion of the proceeds of the Bonds.
identified as "Costs of Issuance" wider the heading 'SOURCES AND USES OF FUNDS" herein; and other
compensation, is, in some instances, contingent upon the issuance of the Bonds and the receipt of the proceeds
thereof.
FlnsneWAAuirar. The County has retained Fishkind & Associates, Inc., Orlando, Florida, as financial
advisor (the "Financial Advisor') in connection with the preparation of the County's plan of financing and with
respect to the authorization and issuance of the Series 1996 Bonds. The fees of the Financial Advisor will be
paid from proceeds of the Series 1996 Bonds and such payment is contingent upon the issuance of the Series
1996 Bonds.
Band CawJd arid Ddnc o=m Carumd Bryant, Miller and Olive, PA., Tallahassee, Florida represents
the County is Bond Counsel, and, with respect to the issuance of the Series 1996 Bonds, as Disclosure Counsel.
The fees of Bond Counsel and Disclosure Counsel will be paid from proceeds of the Bonds, and such payment
is contingent upon the issuance of the Bonds.
ACCURACY AND COMPLETENESS OF THE OFFICIAL STATEMENT
The references to, and excerpts of, all documents referred to herein do not purport to be complete
statements of the provisions of such documents and reference is directed to all such documents for full and
complete statements of all matters of fact relating to the Series 1996 Bonds, the security for the payment of the
Series 1996 Bonds, and the rights and obligations of Registered Owners thereof.
The information contained in this Official Statement has been compiled from official and other sources
deemed to be reliable and, while not guaranteed as to completeness or accuracy, is believed to be correct as of
this date.
Any statements made in this Official Statement involving matters of opinion or estimates, whether or
not so expressly stated, are set forth as such and not as representation of fact, and no representation is made
that any such estimates will be realized. Neither this Official Statement nor any statement which may have been
made verbally or is writing is to be construed as a contract with the holders of the Series 1996 Bonds.
ADDITIONAL INFORMATION
The brief descriptions of the Master Bond Resolution, the 1996 Resolution, the Series 1996 Bonds, and
other documents pertaining to the Series 19% Bonds contained in this Official Statement are qualified in their
entirety by reference: to the originals of such documents, copies of which are available from Indian River County,
Florida, 1840 25th Street, Vero Beach, Florida 32960, Attention: Joseph A. Baird, during the period of the initial
offering of the Series 1996 Bonds.
29
CONTINUING DISCLOSURE
The County has covenanted for the benefit of the holders and beneficial owners of the Series 1996 Bonds
to provide certain fmancial information and operating data relating to the County by not later than June 1 in
each year commencing June 1, 1997 (the "Annual Report"), and to provide notices of the occurrence of certain
enumerated events, if deemed by the County to be material. The Annual Report will be filed by the County with
each Nationally Recognized Municipal Securities Information Repository ("NRMSIR"), and with the State of
Florida Repository, if and when created. The notices of material events will be filed by the County with the
NRMSIR and with the State of Florida Repository, if and when created. The specific nature of the information
to be contained in the Annual Report or the notices of material events is summarized below under the caption
"APPENDIX E - Summary of Continuing Disclosure Certificate." These covenants have been made in order
to assist the Underwriters in complying with S.E.C. Rule 15c2 -12(b)(5). The County has never failed to comply
in all material respects with any previous undertakings with regard to said Rule to provide annual reports or
notices of material events.
AUTHORIZATION OF OFFICIAL STATEMENT
The delivery of this Official Statement has been duly authorized by the Board of County Commissioners
of the County. At the time of delivery of the Series 1996 Bonds, the Chairman of the Board of County
Commissioners ad the County Administrator, acting on behalf of the County, will furnish a certificate to the
effect that nothing has come to their attention which would lead them to believe that the Official Statement, as
of its date and as of the delivery of the Series 1996 Bonds, contains an untrue statement of a material fact or
omits to state a material fact which should be included therein for the purposes for which the Official Statement
is intended to be used, or which is necessary to make the statements contained therein, in the fight of the
circumstances under which they were made, not misleading.
INDIAN RIVER COUNTY, FLORIDA
Fran B. Adams, Chairman
Board of County Commissioners
James E. Chandler
County Administrator
30
GENERAL INFORMMON CONCERNING INDIAN RIVER COUNTY. FLORIDA
GENERAL INFORMATION CONCERNING INDIAN RIVER COUNTY, FLORIDA
Tile following information has been provided by Indian River County, Florida, and Is Included only
for the purpose of providing general background Information. The Information has been compiled on behalf
of the County, and such compllation Involved oral and written communication with various of the sources
indicated. The laformatlon U subject to change, although efforts have been made to update Information where
practicable.
The Series 1996 Bonds are not a general obligation of the State of Florida or any political subdivision
thereof, including Indian River County, and are only payable from the sources described in the Official
Statement.
Deserlitidon
Indian River County (the "County") was established in 1925 by an Act of the Legislature separating it
from St. Lucie County, The County encompasses approximately 497 square miles and is located in the middle
of Florida on the eastern coast, approximately 135 miles north of Miami, 190 miles south of Jacksonville and
135 miles east of St. Petersburg. The County is bounded on the north by Brevard County, on the south by St.
Lucie County, on the weal by Osceola and Okeechobee Counties and on the east by the Atlantic Ocean. The
City of Vero Beach is the seat of County government and the largest city in the County. Other incorporated
cities located within the County are Fellsmere, Indian River Shores, Orchid and Sebastian. There are
approximately 100 miles of waterfront land in the County, including approximately 23 miles of Atlantic Ocean
beaches.
Government
Indian River County has a rive -member Board of County Commissioners (the "Commission"). Each
member represents one of five districts, elected at large (County -wide) for staggered terms of four years. The
Chairman and Vice -Chairman are elected by the Commission. A County Administrator is appointed by the
Commission and is responsible for administrative and fiscal control of the resources of the County. The
following is a list of the Commissioners and the expiration of their respective terms.
Name
ME
Term Expires
Fran B. Adams
Chairman
November, 1996
Carolyn X Eggert
Vice -Chairman
November, 1998
John W Tippw
Member
November, 1998
Richard N. Bud
Member
November, 1996
Kenneth R. Macht
Member
November, 1996
The Commission apportions and levies County taxes and controls the expenditure of all County funds,
except school funds which are controlled by the School Board of Indian River County, and except for funds which
are controlled by an independent taxing district. The budget year of the County runs from October 1 to the
following September 30. Operating revenue is raised from ad valorem taxes, real and personal property taxes,
and user fees with supplements from state and federal sources. The Commission operates a county road system,
water and sewer system, solid waste disposal system, a public golf course and other recreational facilities, and
has power to establish, build, maintain, repair, protect and preserve these public facilities.
Other elected ofiiciala serving County -wide are a Property Appraiser, Tax Collector, Supervisor of
Elections, Sheriff and Clerk of the Circuit Court who is also the Clerk of the Board of County Commissioners.
A-1
The 1990 Census population of the County was 90,208, an increase of 50.6°% over the 1980 Census
Population of 59,896. Vero Beach, the largest city in the County, is the County Seat, and had a 1990 Census
population of 17,350, an increase of 7.4% over the 1980 Census population of 16,176.
In 1990, Indian River County ranked 31st out of 67 counties in Florida in terms of total population,
ulation
at time. As illustrated in the following
ofhe 7has more total state than tripled since 1960. t Itis anticipated ted that the growth of the Countye, the poulation
will continue for
the foreseeable future.
If31 Population
In e
1960 25,309
1970 35,E
42.21
1980 59,8%
66.41
1990 901208
50.61
1991 92+428
2.46
1992 94,091
1.80
1993 95,641
1.65
1994 97+415
1.85
Source: U.S. Census and University of Florida, Bureau of Economic
and Business Research
While the population of the County has been steadily increasing, so has the median age of the resident
population. The number of persons age 15-44 is the largest age category. The following table illustrates the
percentage of population in the various age groups since 1960.
.Am Crm Im
1980 1990 1"4
0.14 30.4% 27.3%
13.44 33.5
18.1% 15.6% 17.0%
33.4
45.64 22.1 21.9
37.2 40.0 34.7
24.4 22.2 19.9
65+ 13.9 17.4
20.3 25.2 28.4
Source: US. Census, except for 1994 estimates from University of Florida, Bureau of Economic and Business
Research.
Components of Population ChAn.._
1980 Census .
1990 Ce0iU6.......................................................... 59,8%
90,208
PercentChange ...................................................
50.61%
Components of Change due to Natural Increase............................... 573
Components of Change due to Net Migration 29,739
Percentage of Change due to Natural Increase .
Percentage of Change due to Net Migration .................................. 1.89%
........... 98.11%
Source: University of Florida, Bureau of Economic and Business Research.
A-2
Indult
The economy of Indian River County is based upon agriculture (citrus and cattle), tourism, light
manufacturing, wholesale and retail trade and commercial fishing. In the 1993-1994 crop year Indian River
County had 69,240 acres of citrus which produced 18,890,000 boxes of oranges, grapefruit and specialty fruit.
The County was fourth among all Florida Counties in total citrus production, but second in grapefruit production.
Part of the citrus fruit is sold to the fresh fruit market, and there are also 21 major packing houses and one citrus
juice processing plant located in the County. Approximately 71,809 acres of improved pasture and rangeland
are utilized for dairy farming and beef cattle production, while approximately 22,873 acres remain as forest and
woodlands.
Sun Ag, Inc. has extensive citrus and agriculture interests in the County, employing approximately 800
persons at the peak of the citrus season. Their agricultural properties, including a citrus packing plant, are
located west of Fellsmere in the central part of the County.
Other industries include lumber and millwork plants, cabinet and millwork plants, machine shops,
welding shops, sheet metal fabricators, mattress ticking, construction, architectural ornamental iron works, stone
and marble products, asphalt plant, pilot training school, welding school, television antennas, wholesale seafood,
metal windows and awnings, printing, air handling systems, ready mix concrete, concrete blocks, precast concrete
products, electronic components, plating and machine shop equipment, screw machine parts, aircraft parts and
supplies, factory built homes, dairy products, newspaper, radio stations and temperature controls.
Mme banks, eleven savings and loan associations and twenty securities brokerage offices provide financial
services within the County.
Tourism and Recreation
The Atlantic beaches and the excellent climate in the County provide the basis for a year-round tourist
industry. There are numerous hotels and motels in the County as well as retail and service establishments geared
to serving the tourist trade.
Forty-six miles of riverfront on the Indian River, many miles of canals and lakefront and approximately
23 miles of Atlantic Ocean beaches as well as two state parks, five county parks, and eight public and six private
golf courses provide ample opportunity for outdoor recreation.
The Los Angeles Dodgers baseball club trains at Dodgertown in Vero Beach. The 340 -acre complex
is also home to the largest and most advanced baseball school in the world, conducted by the Dodger
organization.
The Disney Corporation purchased property on S.R. AIA to develop its first resort beyond the theme
park, which is part of the Disney Vacation Club. The first phase opened October 1, 1995. This 71 acre resort
offers, at this time, a 115 room 4 story inn, and 60 beachfront cottages and villas. Dining, lounges, a swimming
pool and tennis are some of the resort's features. There are future plans to add 260 additional villas.
A-3
Indian River County employment fluctuates seasonally with most unemployment occurring from July
through October, the slower months in both the tourist and citrus picking seasons. Employment by sector for
the calendar year ended 1993 is as follows:
Source: University of Florida, Bureau of Economic & Business Research.
Major employers in Indian River County and their approximate current level of employment as of
September, 1994 were as follows:
Indian River County School District
Percent of Distribution
Agriculture, forestry & fishing
12.14
Manufacturing
5.14
Construction
7.07
Transportation, Communications & Utilities
2.59
Wholessle Trade
1.91
Retail Trade
2236
Finance, Insurance & Real Estate
5.82
Serviaa
Government
35.03
7.85
Other
.09
Total
100.00%
Source: University of Florida, Bureau of Economic & Business Research.
Major employers in Indian River County and their approximate current level of employment as of
September, 1994 were as follows:
Indian River County School District
School System
2,127
Indian River County
County Government
1,361
Indian River Memorial Hospital
Health Care
1,350
Sun A&+ Inc.
Citrus & Cattle
S00•
Publix Corporation
Retail Grocery
750
City of Vero Beach
City Government
597
Gracewood Fruit Co.
Citrus
465.
Graves Brothers, Inc.
Citrus
450'
Hale Kennedy Groves
Citrus
450.
Dodgertown Complex
Convention Center, Baseball
4504
The New Piper Aircraft Corp.
Aircraft Manufacturing
380
Johns Nand
Residential Resort
330•
Sebastian River Medical Center
Acute Care Facility
340
Walmart
Retail Merchandise
330
W1nn Dixie
Retail Merchandise
280
Source: Indian River County Council of 100, 1994.
• Indicates peak seasonal employment
A-4
The following table sets forth a comparison of the unemployment rate in the County compared to that
in the State of Florida:
Annual Averatses
Indian River County State of Florida
1990
10.0
5.8
1991
9.9
7.0
1992
11.9
7.5
1993
10.7
7.1
1994
11.0
5.0
6.6
Source: State of Florida, Department of Labor and Employment Security, Bureau of Research and Information
Rail transportation in the County is handled by Florida East Coast Railway while numerous freight truck
lines are available to serve the County. Highways providing surface travel are Interstate 95, U.S. 1, and State
Road AIA for north -south travel and State Road 60 for travel to the west while the Florida Turnpike courses
south and northwest through the southwest corner of the County. The area is served by Greyhound Bus Lines
for passenger and package service.
Vero Beach Municipal Airport and the Sebastian Airport serve both charter and private aircraft.
Scheduled airline service is available to County residents at the Melbourne Regional Airport (about a fifty minute
drive), Orlando International Airport and Palm Beach International Airport (each about an hour and a half
drive).
Health Caro
The Indian River Hospital District, encompassing all but six square miles of the County, has a 347 -bed
facility in Vero Beach. The Sebastian River Medical Center, a private for-profit acute care facility, is located
in the northern part of the County on U.S. 1. There are presently over 266 physicians serving the hospitals and
area residents. The Sunshine Rehabilitation Center offers physical and speech therapy to handicapped children
and adults.
The educational system is administered on a County -wide basis by the School Board of Indian River
County. The five -member School Board, elected for staggered four-year terms each, appoints a Superintendent
of Schools. The County has 12 elementary schools, three middle schools, one freshmen learning center, and two
senior high schools. There is one Special Education School for all grades. Enrollment for the 1995-1996 school
year was 13,244 students. There are 867 administrative and teaching personnel and 715 non -instructional
personnel. In addition to the public school system, there are several parochial and private schools.
Indian River Community College, with its main campus located in Ft. Pierce, about 15 miles from Vero
Beach, has branch campuwa in Vero Beach and in Okeechobee and Martin Counties. The State -supported
community college offers a general college program for the first two years and a wide variety of technical and
vocational instruction. The Mueller Center in Vero Beach has a 40 -acre campus, ten classrooms and office
facilities.
A-5
One daily newspaper is published in the County. There are five local radio stations. Television
reception is good for the major commercial stations and cable is available to the County. Telephone service is
supplied by Southern Bell. Vero Beach Electric System and Florida Power & Light Company supply electricity.
LOCAL AND STATE TAXES
Florida has no individual state income tax. Inheritance tax is confined to the amount allowed as a credit
to the State from the tax levied by the United States government. The 6% regular sales tax plus the 1% local
option sales tax applies to all items except groceries and medicines.
Under the Florida Homestead Exemption law, no municipal or county taxes are levied against the first
$25,000 for valuation of a home occupied by its owners except for special assessments. It is a state law that all
tax appraisals must be at 10D% of value.
The Florida corporate tax is 5.5% with an exemption and no surcharge.
The Board of County Commissioners of Indian River County is limited by the Constitution of Florida
to an ad valorem tax levy of 10.0 mills per $1,000 of assessed value for operating expenditures, with an additional
10.0 mills within special created municipal servict taxing units.
All taxes are due and payable on November 1 of each year or as soon thereafter as the assessment roll
is certified and delivered to the Tax Collector. All unpaid taxes become delinquent on April 1 following the year
in which they are assessed. Discounts are allowed for early payment at the rate of 4% in the month of
November, 3% in the month of December, 2% in the month of January and 1% in the month of February. The
taxes paid in March are without discount.
Delinquent taxes on real property bear interest of 18% per year. On or prior to June 1 following the
tax year, certificates are sold for all delinquent taxes on real property. After sale, tax certificates bear interest
of 18% per year or at any lower rate bid by the buyer. Application for a tax deed on any unredeemed tax
certificates may be made by the certificate holder after a period of two years. Unsold certificates are held by
the County.
Delinquent taxes on personal property bear interest of 18% per year until the tax is satisfied either by
seizure and sale of the property or by the five-year statute of limitations.
The County does not accrue its portion of the County -held certificates due to the immaterial amount.
The following tables provide statistical information on the County's tax collection history, assessed
property values, debt structure and principal taxpayers:
A-6
INDIAN RIVER COUNTY, FLORIDA
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Percent of Total
Fit' scal
4.72025
6.92780
1.77208
Total
Assessed to Total
Yea
Real Property
Personal Property Total Assessed
Estimated
Estimated
jadjd
Assessed Value
Assessed Value
Value
Actual Value
Actual Value<t)
1985
3,534,025,949
187,757,610
3,721,782,559
3,721,782,559
100.0
1986
3,781,716,839
229,364,177
4,011,081,016
4,011,081,016
100.0
1987
3,974,44157
259,733,289
4,234,191,446
4,276,961,057
99.0
1988
4,387,121,880
280,414,239
4,667,536,119
4,667,536,119
100.0
1989
4,570,700,250
303,141,158
4,873,841,408
4,873,841,408
100.0
1990
4,954,816,716
32097,153
5,276,213,869
5,276,213,869
100.0
1991
5,353,680,640
347,990,177
5,701,670,817
5,782,627,603
98.6
1992
6,200,439,440
362,973,529
6,563,412,969
6,656,605,445
98.6
1993
6,385,346,500
364,537,718
6,749,884,218
6,749,884,218
100.0
1994
6,703,739,975
372,223,746
7,075,963,721
7,061,811,794
99.8
1995
7,305,049,473
530,825,131
7,835,874,604
7,835,874,604
100.0
Source: (1) Department of Revenue, State of Florida and Indian River County 1994-1995 Comprehensive
Annual Financial Report.
INDIAN RIVER COUNTY, FLORIDA
PROPERTY TAX RATES - ALL OVERLAPPING GOVERNMENTS
(PER $1,000 OF ASSESSED VALUE)
LAST TEN FISCAL YEARS
Independent
County -Wide Taxing Districts Total axiTng Districts
Fiscal School County -
AM tl Board Other(2) Wide i i e Ot110T
1986
4.72025
6.92780
1.77208
13.42013
3.95872
2.56083
1987
6.15344
6.92340
1.88558
14.96242
5.36896
256025
1988
7.21730
7.35880
2.17036
16.74646
5.55240
3.11748
1989
7.03750
759160
1.68019
16.30929
5.68680
3.08220
1990
7.14860
8.07040
2.00877
17.22777
6.08563
3.00710
1991
6.77130
8.32080
2.16825
17.26135
6.04394
3.01990
1992
6.15160
9.36170
1.91520
17.42850
4.82256
4.00770
1993
5.65490
956260
2.72080
17.93830
4.58254
1.63707
1994
5.77090
9.84460
258730
18.20280
4.61054
2.01939
1995
5.92350
10.34800
2.74083
19.01233
4.40633
2.00503
(1) Per Florida Statute 200.071, no ad valorem tax millage shall be levied against real property and tangible
personal property by counties in excess of 10 mills, except for voted levies.
(2) Composite tax rates
(3) Average tax rate
Source: State of Florida and Indian River County 19941995 Comprehensive Annual Financial Report.
A-7
(1) Total assessed value $7,305,049,473
Source: Indian River County Property Appraiser
A-8
INDIAN RIVER COUNTY, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Percent
Cur eet Percent
Delinquent Total
of Total
Recall TOW
Tax of Levy
Tax Tax
Collections
.%L Tax
Collections Collected
Collections Collections
to Levu
1986 17,709,388
14970,965 95.83
42,828 17,013,793
96.07
1987 22=164
21,144969 94.86
27,719 21,174,688
94.99
1988 27,551,218
27,041,829 98.15
277,384 27,319,213
99.16
1989 28,110,296
26,916,117 95.75
93,(M 27,009,205
96.08
1990 32,890,687
31,471,607 95.69
77,376 31,548,983
95.92
1991 34,559,500
33,265,772 96.26
245,389 33,511,161
96.97
1992 36,316,457
34,977,492 96.31
102,452 35,079,944
96.60
1993 37,683.977
36,337,153 96.43
87,830 36,424,983
96.66
1994 39,304,957
37518,799 95.46
169,530 37,688,329
95.89
1995 37,475,209
35,835,301 95.02
667,860 36,503,221
97.41
Source: Indian River County 19941995 Comprehensive Annual Financial Report.
INDIAN RIVER COUNTY, FLORIDA
PRINCIPAL TAXPAYERS
SEPTEMBER 30,1995
Percent
1995
of Total
Assessed
Assessed
SIII
Tvoe of Business
Value(l)
Value
Bell South
Telephone Utility
$57,266,000
0.78%
Felhmere Joint Venture
Agriculture
$49,080,184
0.67%
Florida Power & Light
Electric Utility
$44,331,026
0.61%
Windsor Properties & Club
Land Development
$43,320,745
0.59%
lost Tree ViWge
Land Development
$29,734,242
0.41%
Wal-Mart Stores, Inc.
Retail
$23,950,168
0.33%
GHA Grand Harbor, Ltd.
Land Development
$22,129,910
0.30%
Orchid Island Properties
Land Development
$18,896,326
0.26%,
John's Idmd, Inc.
band Development
$15,032,603
0.21%
Belair Groves Joint Venture Agriculture
$12,121,451
0.17%
TOW
$315,862,655
4.32%
(1) Total assessed value $7,305,049,473
Source: Indian River County Property Appraiser
A-8
APPENDIX B
FINANCIAL STATEMENTS OF THE COUNTY FOR FISCAL YEAR ENDED SEPTEMBER 30, 1995
INDIAN RIVER COUNTY, FLORIDA
For the Fiscal Year October 1, 1994 Through September 30, 1995
Prepared By
Finance Department
Edwin M. Fry, Jr.
Finance Director
Indian River County, Florida
GENERAL PURPOSE FINANCIAL STATEMENTS
Fiscal Year Ended September 30, 1995
Board of County Commissioners
Kenneth R. Macht Richard N. Bird
Chairman Carolyn K. Eggert
Fran B. Adams John W. Tippin
Vice -Chairman
Jeffrey K. Barton
Clerk of the Circuit Court
Ann Robinson
Supervisor of Elections
James E. Chandler
County Administrator
Jim Davis
Director of Public Works
Terry Pinto
Director of Utilities
H.T. "Sonny" Dean
Director of General Services
Elected Constitutional Officers
Karl Zimmermann
Tax Collector
County Management
David C. Nolte
Property Appraiser
Gary C. Wheeler
Sheriff
Charles P. Vitunac
County Attorney
Doug Wright
Director of Emergency Services
Robert Keating
Director of Community Development
Jack Price
Director of Personnel and
Human Services
Joseph A. Baird
Director of OfJ?ce of Management and
Budget
Indian River County, Florida
GENERAL PURPOSE FINANCIAL STATEMENTS
TABLE OF CONTENTS
Fiscal Year Ended September 30,1995
Page
Number
REPORT OF INDEPENDENT ACCOUNTANTS ............................................ 1
GENERAL PURPOSE FINANCIAL STATEMENTS
(COMBINED STATEMENTS - OVERVIEW)
Combined Balance Sheet - All Fund Types and Account Groups and
Discretely Presented Component Unit ..................................................... 3
Combined Statement of Revenues, Expenditures and Changes in Fund
Balances - Primary Government - All Governmental Fund Types
and Expendable Trust Fund............................................................... 5
Combined Statement of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual - Primary Government - All
Govemmental Fund Types................................................................ 7
Combined Statement of Revenues, Expenses and Changes in Retained
Earnings - All Proprietary Fund Types and Discretely Presented
ComponentUnit..........................................................................11
Combined Statement of Cash Flows - All Proprietary Fund Types and
Discretely Presented Component Unit.....................................................13
Notes to Financial Statements.................................................................17
COMBINING AND INDIVIDUAL ENTERPRISE FUNDS
Enterprise Funds:
Combining Balance Sheet................................................................. 63
Combining Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) . 67
Combining Statement of Cash Flows ...................................................... 69
Belger Harris Toombs I Elam
& McAlpin
C&Kwd "r AccouNant, Ch&vmd
SuSul
� Ifh Building
3160 Cardinal Drive
Wro Beach, Florida 32963
/m/2348461
The Honorable County Commissioners and
Constitutional Officers
Indian River County, Florida
We have audited the accompanying general purpose financial statements and the combining and
individual enterprise funds of Indian River County, Florida, as of and for the year ended
September 30, 1995, as listed in the table of contents. These financial statements are the
responsibility of Indian River County, Florida, management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and
Government Auditing Standards, issued by the Comptroller General of the United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all
material respects, the financial position of Indian River County, Florida, as of September 30,
1995, and the results of its operations and the cash flows of its proprietary fund types for the year
then ended, in conformity with generally accepted accounting principles. Also, in our opinion,
the combining and individual enterprise fund statements referred to above present fairly, in all
material respects, the financial position of each of the individual enterprise funds financial
statements of Indian River County, Florida, as of September 30, 1995, and the results of
operations of such funds and the cash flows of the individual enterprise funds for the year then
ended in conformity with generally accepted accounting principles.
r ztw'�
CWS CAajakaL
Vero Beach, Florida
February 2,1996
Fort Pierce/lensen 9edthNero leach
Member AICPA Member AICPA Liv' ion For CPA Firma
Private Comp initw Prac tic a Ser hon �Mmber Hl'PA
GENERAL-PURPOSE FINANCIAL STATEMENTS
(COMBINED STATEMENTS - OVERVIEW)
These basic financial statements provide a summary overview of
the financial position of all funds, account groups and component
units as well as the operating results of all funds. They also serve
as an introduction to the more detailed statements and schedules
that follow in the next subsection.
2
Indian River County, Florida
OMRINED RAI AN SHER
TYPES AND A .O 1N1T C:Ri
ELY PRESENTED COMPONI
September 30, 1995
The accompanying notes are an integmi part of the financial statements.
3
,M
Primary
Proprietary
Governmental Fund Types
Fund Types
Special
Debt
Capital
Internal
ASSETS
General
Revenue
Service
Projects
Enterprise
Service
Cash and cab equivalents
Investments
S 5,146,011 S 22,450,108 S
464,072 S
1,973,110 S
6,620,106 f
427,400
Accounts receivable • net
7,380,687
330,768
17,755,887
225,998
1,089,699
7,369
500,226
1,246,023
3,000,000
useamenq receivable
533,025
1,387,159
1,479
Due from other funds
Due fmm other govemniens
246,839
507,328
225,150
396,562
117336
2,500,000
422,059
84,371
138,217
1,000,000
7,372
lowest receivable
Inventories
33,879
120,380
6,972
8,306
31,922
15,860
Restricted assets:
52,302
-
482,229
101,189
Cash and cash equivalents
-
4,199,790
'
InvestmentsInvestm
Impact fen ceivable
re
12,280,1 S3
-
Special assessments receivable
3,683,400
2,868,640
-
-
Property, pint and equipment
166,714,842
341,992
Accumulated depreciation
Liar receivable
_
(32,777,043)
(279,706)
Unamortized bond costs
_
634,844
713,840
-
IntanBfble assets
32
-
Deposits
OTHER DEBITS
,864
1 '�
Amount available In debt service funds
Amount to be provided for retirement
.
of general longterm debt
Total Assets and Other Debits
f 13.719.814 f 41.907.110 S 1.685.448 S 5.403.701 S 168.634.355 f 4.615.586
LIABILITIES
Accounts payable
Retainage payable
S 1,293,079S
830,380 S
- S
112,993 S
674,413 $
130,166
Claims payable
66,040
-
9,377
Due to other govtmments
302,041
19,615
-
4,411
1.406,000
Deferred compensation
.
Other deposits held in escrow
33,925
-
16,750
Deferred revenues
25,634
543,640
-
640
Due to other funds
Payable from restricted assets:
208,748
97,954
3500000
,,
"
Accounts payable
-
-
1,962,372
Retainajepayable
979,871
Accrued Imetal payable
45,815
364,393
Bonds payable - current portion
-
2,025,000
Closure and malnWance costs payable
5,292,440
Customer deposits
1,115,376
Accrued compensated absences
Capital kno
_
335,473
42,606
Bands payable
Total Uabllides
=1
45,815
57,887 893
139.120 4
-
1,578,772
EQUITY AND OTHER CREDITS
Invates� general fixed assetsContri
-
ons
Retained comings:
-
70,677,378
637,642
Reserved
Unreserved
-
4,050,385
Fund balmces:
-
19,764,110
2,399,172
Reserved
Unreserved luudesignated_
50,983
11,803,384
-
4013492481
1,639,633
5,264,581
Total Equity rad Other Credits
Total Llabillilm Equity
11,834,367
10,349,481
1,639,633
3,264,361
94,492,073
3,036,Equity
&ad Other Credits
S 13.719.814 S 41.907.110 S 1.685.448 S 5.403.701 S 168.634.353 f 4.613.586
The accompanying notes are an integmi part of the financial statements.
3
,M
Cm�eunraent
Compo eat
Unit,
llil
Food(Memomadem
otele
Totals
(Memorandum
TYPO Account GMI- a Only)
Ce -Neral
Proprietary
Only)
Teat and Fixed
Geaenl
Long -Term
Primery
Housing
Ileportliq
Agmey Assets
Debt
Government
Authority
Entity
S 3,SS3,919 S S
2,497,314
S
40,634,626 S
17,854 S
40,652,480
6.992
33,469,836
33,469,836
1,979,665
9,638
1,989,303
• -
333,025
t7t,f12t
1,742
4,056,360
4,056,360
-
1,790,616
19,325
1.809,941
4,321
219,319
219,319
-
640,241
640,241
'
4,199,790
256,716
4,436,506
'
12,280,153
12,280,133
'
3,68S,400
3,683,400
'
- 92,611,470
2,868,640
259,668,304
9.696,028
2,868,640
269,364,332
'
(33,036,731)
(1,464,860)
(34,521,611)
'
634,844
634,80
' -
713,840
713,840
'
322,864
322,864
• -
11000
894
1,894
• -
1,639,633
1,639,633
1,639,633
23 827 S93 25 927S93
SQ)jS. S 92.611.470 S 27. 67176 S 36} A 9g8 $ 8.535.393 S
25.821,593
370.644.593
S 46,387 S • S
- S
3,089,418 S
15,320 S
3.104,738
-
75,417
75,417
1,510,360
1,406,000
1.406,000
2,497,314
1,836,627
1.836,627
1,362,729
2,497,314
2,497,314
-
-
1,613,404
1,613,404
249,639
569,934
9,871
579,805
-
4,036,360
4,036,360
'
1,962,372
3,IS3
1,965,525
' -
979,971
979,871
'
410,208
4,200
414,408
'
2.025,000
170.000
2,195,000
'
5,292,440
5,292,440
' -1,115,376
20,301
1,135,678
• -
2,193,017
2,671.096
2,671,096
'
364,209
364,209
364,209
24,810.000
27.467,226
82,697,893 4 777 400
112.662,939 �5 000
87,475,293
117.663,185
- 92,611,470
-
92,611,470
92,611,470
' -
71,313,020
3,464,312
74.779,332
•
4,050,585
229.795
4.280,380
'
22,163,282
(159,758)
22,004,524
-
197 640
6,953,197
52.330,505
6.955,197
S2 330,f03
197W _ 92.611,470
249,446,059
3,335.349
252.911.408
$_ LOU& S 92.611.470 S 27.467 226 S 362.109.998 S --M3= S
4
Indian River County, Florida
STATEMENT OF RIEV -N 1 .cEXPI
t.ND CHANGES IN FUND RA-ANCf;
PRIMARY GOVERJNMENT
VTAL FUND TYPES AND EXP NDAI
For the Year Ended September 30, 1995
Fund Balances at End of Year $--U.814.367 SQL
The accompanying notes are an integral part of the financial statements.
5
Governmental
Special
REVENUES
General
Revenue
Taxes
Licenses and permits
S 31,167,192
S 12,861,519
lntergovemmental
257,573
6,877
Charges for services
6,084,821
4,107,544
Fines and forfeitures
5,160,990
1,773,313
Special assessments
761,084
154,368
Interest
-
2,128,987
Miscellaneous
990,902
1,720,379
Total Revenues
341,920
831,019
44,764,482
_ 23,584,006
EXPENDITURES
Current:
General government
13,617,405
993,579
Public safety
Physical environment
18,413,087
11,094,114
Transportation
192,445
2,232,552
Economic environment
67,896
11,400,192
Human services
157,895
2,409,402
1,659,664
C
Culture/Recreation
Debtt Service:
ervicice:
4,444,778
463,769
Principal
238,782
Interest and fiscal charges
16,047
'
Capital Projects
Total Expenditures
39,557,737
27,843,870
Excess of Revenues Over
(Under) Expenditures
5,206,745
_ (4,259,864)
OTHER FINANCING SOURCES (USES)
Operating transfers in
311,279
6,301,791
Operating transfers out
Operating transfers to component unit
(5,101,791)
(2'
Lease purchase proceeds
249,032
,9)
(8910
(89,107)
Bond proceeds
Total Other Financing Sources (Uses)
(4,541,480)
14.8-6-0,953,
_ 19,009 358
Excess of Revenues and Other
Financing Sources Over (Under)
Expenditures and Other Uses
665,265
14,749,494
Fund Balances at Beginning of Year
11,189,102
25,599,987
Fund Balances at End of Year $--U.814.367 SQL
The accompanying notes are an integral part of the financial statements.
5
Fund Types
Fiduciary Fund Type
Expendable
Totals
Debt
Capital
Trust
(Memorandum
Service
Projects
(inmate Welfare)
Only)
S -
$ 6,335,187
$ -
S 50,363,898
-
-
-
264,450
1,108,029
-
11.300.394
-
-
104,429
7,038,732
-
-
-
915,452
-
-
-
2,128,987
84,560
165,668
-
2,961,509
2,124
1,175,063
1,192,589
6,502,979
104,429
76,148,485
14,610,984
136,516 29,643,717
- - - 2,424,997
- 11,468,088
• - 157,895
4,069,066
- 4,908,547
700,000
682,285 -
2,423,611
1,382,285 2,423,611 136,516
(189,696) 4,079,368 (32,087)
• 553,000
553,000
(189,696) 4,632,368 (32,087)
1,829,329 632,213 229,727
S 1.639.633 $ —12154JIL S 197.640
6
938,782
698,332
2.423.611
71,344,019
4,804,466
7,166,070
(7,166,070)
(89,107)
249,032
14,860,953
15,020,878
19,825,344
39,480,358
S 59.305.702
Indian River County, Florida
COMBINED STATEMENT OF RV .N IFS EXPENDITURES
AND CHANGES IN FUND BA -AN - c . R rD ..T AND ACTUAL
PRIMARY GOVERNMENT
ALL .OV -RNM -NTA . F IND TYPES
For the Year Ended September 30, 1995
REVENUES
Taxes
Licenses and permits
latargowmmental
Charges for services
Fines and forfeitures
Special assessments
Interest
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/Recreation
Debt Service:
Principal retirement
Interest and fiscal charges
Capital Projects
Total Expenditures
Excess of Revenue Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
General
14,153,571
13,617,405
Variance
18,728,488
18,413,087
Favorable
Budget
Actual
(Unfavorable)
S 29,704,696 $
31,167,192
$ 1,462,496
276,150
257,573
(18,577)
5.739,079
6,084,821
345,742
4,169,025
5,160,990
991,965
589,550
761,084
171,534
812,240
990,902
178,662
363,992
341,920
(22,072)
41,654,732
44,764,482
3,109,750
14,153,571
13,617,405
536,166
18,728,488
18,413,087
315,401
197,530
192,445
5,085
67,900
67,896
4
180,631
157,895
22,736
2,484,965
2,409,402
75,563
4,641,865
4,444,778
197,087
265,980
238,782
27,198
16,049
16,047
2
40,736,979
39,557,737
1,179,242
917,753
5,206,745
4,288,992
Operating transfers in
512,406
311,279 (201,127)
Operating transfers out
(5,101,791)
(5,101,791) _
Operating transfers to component unit
_
Lease purchase proceeds
249,032
249,032
Bond proceeds
Total Other Financing Sources (Uses)
(4,340,353)
(4,541,480) (201,127)
Excess of Revenues and Other Financing Sources
Over (Under) Expenditures and Other Uses
$ (3.422,600)
665,265 $ 4.087.865
Fund Balances at Beginning of Year
Fund Balances at End of Year
11,189,102
$ l 1.854.367
The accompanying notes are an integral pant of the financial statements.
7
■'
Special Revenue
Debt Service
993,579
Variance
-
- -
Favorable
Budget
Actual
(Unfavorable)
S 11,758,120
$ 12,861,519
$ 1,103,399
3,000
6,877
3,877
3,491,545
4,107,544
615,999
1,361,087
1,773,313
412,226
165,161
154,368
(10,793)
1,605,784
2,128,987
523,203
900,578
1,720,379
819,801
443,730
831,019
387,289
19,729,005
23,584,006
3,855,001
Debt Service
1,201,719
993,579
Variance
-
- -
Favorable
Bud¢et
Actual
(Unfavorable)
- -
14,850,000
2,232,552
1,040,128
1,108,029
67,901
95,000
84,560
(10,440)
1,135,128
1,192,589
57,461
1,201,719
993,579
208,14(r
-
- -
11,306,267
11,094,114
212,153
-
- -
14,850,000
2,232,552
12,617,448
-
- -
16,557,364
11,400,192
5,157,172
- -
1,897,307
1,659,664
237,643
- -
727,507
463,769
263,738
-
-
-
-
700,000
700,000 -
-
-
735,128
682,285 52,843
46,540,164
27,843,870
18,696,294
1,435,128
1,382,285 52,843
(26,811,159)
(,42 59,864)
22,551,295
(300,000)
(189,696) 110,304
6,300,291
6,301,791
1,500
- -
(2,140,803)
(2,064,279)
76,524
-
(89,606)
(89,107)
499
-
14,800,000
14,860,953
60,953
-
18,869,882
19,009,358
139,476
S 57.9412771 14,749,494 $22.690.771
25,599,987
S 40,349.481
$ 1a4Qm (189,696) $ 110,304
1,829,329
Continued
8
$ 1.639.633
Indian River County, Florida
COMBINED STATEMENTOF REV .N .S- EXPENDITURES
AND CHANGES IN FUND BALANCES - 011DOPT ANDA ACTUAL Continued
PRIMARY GOVERNMENT
ALL GOVERNMENTAL FL]ND TYPES
For the Year Ended September 30, 1995
REVENUES
Taxes
Licenses and permits
Inwilavarmeatal
Charges for services
Fines and forfeitures
Special assessments
Interest
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/Recreation
Debt Service:
Principal retirement
Interest and fiscal charges
Capital Projects
Total Expenditures
Excess of Revenue Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
Operating transfers to component unit
Lease purchase proceeds
Bond proceeds
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources
Over (Under) Expenditures and Other Uses
Fund Balances at Beginning of Year
Fund Balances at End of Year
Canital Proiects
8,019,653
2,423,611
Variance
8,019,653
2,423,611
Favorable
Budget
Actual
(Unfavorable)
$ 5,448,153 $
6,335,187
$ 887,034
106,500
165,668
59,168
2,124
2,124
5,554,653
6,502,979
948,326
8,019,653
2,423,611
_ 5,596,042
8,019,653
2,423,611
5,596,042
(2,465,000)
4,079,368
6,544,368
553,000 553,000
553,000 553,000
S Q12.QQQ) 4,632,368 $ 6,544.368
632,213
S-120.581
The accompanying notes are an integral part of the financial statements.
9
Totals (Memorandum Onl
15,355,290
14,610,984
Variance
30,034,755
29,507,201
Favorable
Budget
Actual
(Unfavorable)
S 46,910,969
$ 50,363,898
S 3,452,929
279,150
264,450
(14,700)
10,270,752
11,300394
1,029,642
5,530,112
6,934,303
1,404,191
754,711
915,452
160,741
1,605,784
2,128,987
523,203
1,914,318
2,961,509
1,047,191
807,722
1,175,063
367,341
68,073,518
76,044,056
7,970,538
15,355,290
14,610,984
744,306
30,034,755
29,507,201
527,554
15,047,530
2,424,997
12,622,533
16,625,264
11,468,088
5,157,176
180,631
157,895
22,736
4,382,272
4,069,066
313,206
5,369,372
4,908,547
460,825
965,980
938,782
27,198
751,177
698,332
52,845
8,019,653
2,423,611
5,596,042
96,731,924
71,207,503
25,524,421
(28,658,406)
4,83053
33,494,959
7,365,697
7,166,070
(199,627)
(7,242,594)
(7,166,070)
76,524
(89,606)
(89,107)
499
249,032
249,032
-
14,800,000
14,860,953
60,953
15,082,529
15,020,878
(61,651)
S (13
19,857,431
S 33.433.308
39,250,631
$ 59,108,062
10
Indian River County, Florida
COMBINED cTATFMENT OF RFV N IEe APENSU
AND C AN , ES IN RTARdF )-ARNIN .C.c
ALL PROPRIETARY trrD TYPES AND DIcrRETF v
PRESENTED COi570NFNT I INIT
For the Year Ended September 30, 1995
The accompanying notes are an integral part of the financial statements.
11
Primary
Government
Internal
OPERATING REVENUES
Enterprise
Service
Charges for services
$ 25.222.642
$ 2,002,028
OPERATING EXPENSES
Personal services
Materials, supplies, services and other operating
7,501,402
504,961
Depreciation
7,257,596
1,833,570
Total Operating Expenses
6,445,877
_ 25,675
21,204,875
2,364,206
Operating Income (Loss)
4,017,767
(362,178)
NONOPERATING REVENUES (EXPENSES)
Interest income
grantsOperating 8ts
2,435,678
260,141
Gain on disposal of equipment
266,956
218
Interest expense
26,284
-
Bond amortization expense
(2,386,814)
Intangible amortization expense
,423)
(12(222,867)
'
Loss on disposal of equipment
Total Non -Operating Revenues (Expenses)
(1,000)
193.814
260.359
Income (Loss) Before Operating Transfers
4,211,581
(101,819)
OPERATING TRANSFERS
Operating transfers from primary government
Net Income (Loss)
4,211,581
(101,819)
Add: Depreciation on contributed assets
2,113,820
Increase (Decrease) in Retained Earnings
6,325,401
(101,819)
Retained Earnings at Beginning of Year
17,489,294
2,500,991
Retained Earnings at End of Year
$ 23.814 695
$_1399,172
The accompanying notes are an integral part of the financial statements.
11
Totals
5,882
Totals
(Memorandum
Component
(Memorandum
Only)
Unit
Only)
Primary
Housing
Reporting
Government
Authority
Entity
S_ 27,224,670
$ 617,438
$_ 27,842.108
8,006,363
210,661
8,217,024
9,091,166
209,499
9,300,665
6,471,552
300,222
6,771,774
23,569,081
720,382
_
24,289,463
3,655,589 (102,944) 3,552,645
2,695,819
5,882
2,701,701
267,174
267,174
26,284
-
26,284
(2,386,814)
(51,023)
(2,437,837)
(122,423)
(122,423)
(24,867)
(24,867)
(1,000)
(8,644)
454,173
(52,785)
401,388
4,109,762
(155,729)
3,954,033
89,107
89,107
4,109,762
(66,622)
4,043,140
2.1 3,820
111,799
2,225,619
6,223,582
45,177
6,268,759
19,990,285
25.860
20,016,145
S 26313.867
S 71.037
S 26.284.904
12
Indian River County, Florida
COMB NED STATEMENT OF CASH F OWc
ALL PROPRIRTARY F UivD TYP c ASD MoflnFTFt }�
PRRCFNTRD G )MPONFNT UNIT
For the Year Ended September 30, 1995
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Principal paid on long-term debt
Primary Government
Interest paid on long-term debt
(3,385,027)
Internal
51,037
Enterprise
Service
CASH FLOWS FROM OPERATING ACTIVITIES
(22,801,261) (29,288)
Bond issuance costs
Cash received from customers
$ 25,163,916
S 2,002,106
Cash paid to suppliers for goods and services
(6,299,832)
(1,693,050)
Cash paid to employees for services
(7,483,643)
(501,614)
Net Cash Provided by (Used in) Operating Activities
11,380,441
___(L92,558
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
$ 6,620,106 S
427,400
Operating transfers from primary government
.
Advance to other funds
_
(1,000 000)
Operating grants
Net Cash Provided by (Used in) Noncapital Financing Activities
264.049
218
264,049(999,782)
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Principal paid on long-term debt
(1,960,000)
Interest paid on long-term debt
(3,385,027)
Proceeds from sale of fixed assets
51,037
Proceeds from refund of deposit on land purchase
22,022,070
Purchase of fixed assets
Bond paying agent fees
(22,801,261) (29,288)
Bond issuance costs
(5,645)
(8,250) .
Proceeds from advances from other funds
3,500,000 .
Capital contributed by others
5,361,409
Net Cash Used in Capital
(440,692)
and Related Financing Activities
(19,247,737) (29,288)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities
(12,731,473)
(2,000,000)
Proceeds from sale and maturities of investment securities
22,022,070
2,513,210
Interest and dividends on investments
2,415,069
267.726
Net Cash Provided by Investing Activities
11,705,666
780.936
Net Increase (Decrease) in Cash and Cash Equivalents
4,102,419
(440,692)
Cash and Cash Equivalents at Beginning of Year
6,117,477
868.092
Cash and Cash Equivalents at End of Year
S 10.819.896 S 427_gQQ
Classified As:
Current assets
Restricted assets
$ 6,620,106 S
427,400
Totals
4,199,790
S 10.819.896 $ 427 400
The accompanying notes are an integral part of the fmancial statements.
13
W,
Totals
(169,000)
Totals
(Memorandum
Component
(Memorandum
Only)
Unit
Only)
Primary
Housing
Reporting
Government
Authority
Entity
$ 27,166,022 S 636,318 $ 27,802,340
(7,992,882) (195,055) (8,187,937)
(7,985,257) (210,731) (81195,988)
11,187,883 230,532 11,418,415
89,107 89,107
(1,000,000) - (1,000,000)
264,267 264.267
(735,733) 89,107 (646,626)
(1,960,000)
(169,000)
(2,129,000)
(3,385,027)
(51,087)
(3,436,114)
51,037
-
51,037
-
10,000
10,000
(22,830,549)
(2,273)
(22,832,822)
(5,645)
-
(5,645)
(8,250)
-
(8,250)
3,500,000
-
3,500,000
5,361,409
-
5.361.409
(19,277,025) (212,360) (19,489,385)
(14,731,473)
- (14,731,473)
24,535,280
- 24,535,280
2,682,795
5,882 2,688,677
12,486,602
5,882 12,492,484
3,661,727
113,161 3,774,888
7,585,569 161,409 7,746,978
$ 11247 296 $ 274.570 $ 11.521.866
S 7,047,506 S 17,854 S 7,065,360
4.199,790 256,716 4,456,506
S 11 247 296 S 274.370 S 11.521.866
Continued
14
Indian River County, Florida
COlutt; lNED cTA r FMFNT OF eSH FLOWS- S ContmoipA
Y It�D TYP .c AND DIRCnG'rGr v
PRESENTED CnmPONr` m r r Tkim
For the Year Ended September 30, 1995
r
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Contributed property, plant and equiprnmt
S 1.811.618 $
The accompanying; notes are an integral part of the financial statements.
15
Primary
Government
Internal
RECONCILIATION OF NET OPERATING
Enterprise
Service
INCOME (LOSS) TO NET CASH PROVIDED 13Y
(USED IN) OPERATING ACT[ VITIES
Operating Income (Loss)
S 4,017,767
$ _ (362,178)
Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided by (Used in) Operating Activities:
Depreciation
Allowance for doubtful accounts
6,445,877
25,675
(Increase) Decrease in assets:
(31,783)
Accounts receivable
Due from other funds
(223,316)
5,126
Due from other governments
55,876
Inventories
82,467
(5,048)
Liens receivable
(13,512)
7,561
Increase (Decrease) in liabilities
(141,804)
Accounts payable
Due to other governments
(118,146)
32,647
Other deposits in escrow
725
-
Customer deposits
(7,500)
-
Closure and maintenance costs payable
177,218
'
Deferred revenues
1,120,480
-
Claims payable
(1,667)
Accrued compensated absences
100,312
17,759
3.347
Total Adjustments
7,362,674
169,620
Net Cash Provided by (Used in)
Operating Activities
S 11.3$0441 S
r
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Contributed property, plant and equiprnmt
S 1.811.618 $
The accompanying; notes are an integral part of the financial statements.
15
Totals
300,222
Totals
(Memorandum
Component
(Memorandum
Only)
Unit
Only)
Primary
Housing
Reporting
Government
Authority
Entity
S 3,655,589 $ (102,944) $ 3,552,645
6,471,552
300,222
6,771,774
(31,783)
-
(31,783)
(218,190)
12,809
(205,381)
55,876
-
55,876
77,419
5,875
83,294
(51951)
-
(51951)
(141,804)
-
(141,804)
(85,499)
4,503
(80,996)
725
-
725
(7,500)
-
(7,500)
177,218
196
177,414
1,120,480
-
1,120,480
(1,667)
9,871
8,204
100,312
-
100,312
21.106
21.106
7,532,294
333.476
7,865,770
S 11.187.883 S 230,332 S 11.418.41 S
S 1.8 LUL S - $ _ 1.811,618
16
Indian River County, Florida
NOTES TOFINANCIAi. RTATFAIEI�a
Year Ended September 30,1 y95
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Indian River County, Florida, (the "County") is a political subdivision of the State of Florida, created
pursuant to Chapter 7 of the Florida Statutes. It is governed by an elected Board of County
Commissioners (the "Board") which is governed by state statutes and regulations. In addition to the
members of the Board, there are five elected Constitutional Officers, pursuant to Article 8, Section 1(d),
of the Constitution of the State of Florida; Clerk of the Circuit Court, Property Appraiser. Sheriff.
Supervisor of Elections, and Tax Collector. The Constitutional Officers maintain separate accounting
records and budgets.
The accompanying financial statements present the combined financial position of the various fund
types and account groups, the combined results of operations of the various fund types, and the
combined statement of cash flows of the proprietary fund types for the funds controlled by the Board,
the County's Constitutional Officers and the County's component units.
The Board funds a portion of, or in certain instances, all of the operating budgets of the County's
Constitutional Officers. The payments by the Board to fund the operations of the Constitutional Officers
are recorded as operating transfers out on the financial statements of the Board and as operating transfers
in or charges for services on the financial statements of the Constitutional Officers. Accordingly, such
amounts and the budget relating to those amounts have been eliminated in the accompanying combined
financial statements.
The accounting policies of the County conform to generally accepted accounting principles, as
applicable to governments. The following is a summary of the more significant policies.
A. Reporting Entity
The concept underlying the definition of the reporting entity is that elected officials are accountable to
their constituents for their actions. The reporting entity's financial statements should allow users to
distinguish between the primary government (the County) and it's component units. However, some
component units, because of the closeness of their relationships with the County, should be blended as
though they are part of the County. Otherwise, most component units should be discretely presented.
To accomplish this goal, the County's financial statements present the fund types and account groups of
the County, including component units that have been blended, and provide an overview of the
discretely presented component unit in a separate column. As required by generally accepted accounting
principles, the financial reporting entity consists of (1) the primary government (the County), (2)
organizations for which the County is financially accountable, and (3) other organizations for which the
nature and significance of their relationship with the County are such that exclusion would cause the
reporting entity's financial statements to be misleading or incomplete. The County is financially
accountable if it appoints a voting majority of the organization's governing body and (a) it is able to
impose its will on that organization or (b) there is a potential for the organization to provide specific
17
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30,1995
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
A. Reporting Entity - Continued
financial benefits to, or impose specific financial burdens on, the County. The County may be
financially accountable if an organization is fiscally dependent on the County regardless of whether the
organization has (a) a separately elected governing board, (b) a governing board appointed by a higher
level of government, or (c) a jointly appointed board. Based on these criteria, County management
examined all organizations which were legally separate in order to determine which organizations, if
any, should be included in the County's financial statements. Management determined that the Solid
Waste Disposal District, the Emergency Services District, and the Indian River County Housing
Authority were the only organizations that should be included in the County's financial statements as
component units.
Solid Waste Disposal District (SWDD) - Created pursuant to County Ordinance 87-67, the Board of
County Commissioners serves as the Board for the SWDD and sets the non ad valorem assessment fees
for the SWDD. Although legally separate, the SWDD is appropriately blended as a proprietary fund
type (enterprise) component unit into the primary government.
Emergency Services District (EMS) - Created pursuant to County Ordinance 90-25, the Board of County
Commissioners serves as the Board for the EMS and sets the millage rate for the EMS. Although legally
separate, the EMS is appropriately blended as a governmental fund type (special revenue) component
unit into the primary government.
Discretely Presented Component Unit
Indian River County Housing Authority (IRCHA) - Created pursuant to Chapter 421, Florida Statutes,
the IRCHA, whose Board is appointed by the State of Florida, provides subsidized public housing in
accordance with federal legislation. The County provides the primary funding for the operations of the
IRCHA, maintains budgetary control over the operating costs of the IRCHA and provides use of certain
furniture and equipment at no charge. Appropriations from the County totaled $95,742, and the related
actual operating costs totaled $89,107 for the fiscal year. The IRCHA cannot overspend appropriations
in total. Since the IRCHA is fiscally dependent on the County, it has been included in the general
purpose financial statements of the County. The IRCHA is presented as a proprietary fund type.
Separate financial statements for the Solid Waste Disposal District and the Emergency Services District
are not presently developed. Separate financial statements for the Indian River County Housing
Authority are available in the administrative office located at 1028 20th Place, Vero Beach, Florida
32960.
IS
Indian River County, Florida
NOTES TO FINANCIAL STAT M NTS Continued
:ar Ended September 30,1995
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
A. Reporting Entity - Continued
Because the component units have been reported as if they are part of the County, there are limited
instances where special note reference or separation will be required. If no separate note reference or
categorization is made, the user should assume that information presented is equally applicable.
B. Fund Accounting
The accounts of the County are organized on the basis of funds and account groups, each of which is
considered a separate accounting entity. The operations of each fund are accounted for with a separate
set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures,
or expenses, as appropriate. Government resources are allocated to and accounted for in individual
funds based upon the purposes for which they are to be spent and the means by which spending activities
are controlled. The purpose of the County's various funds and account groups is as follows:
Governmental F rods
General Fund - The General Fund is the general operating fund of the County. It is used to account for
all financial resources, except those required to be accounted for in another fund.
Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific
revenue sources (other than major capital projects) that are legally restricted to expenditures for specified
purposes.
Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and
the payment of, general long -tem debt principal, interest and related costs.
Capital Projects Funds - Capital Projects Funds are used to account for financial resources to be used for
the acquisition or construction of major capital facilities (other than those financed by the proprietary
funds.)
P1pjzdel= Fun a
Enterprise Funds - Enterprise Funds are used to account for operations (a) that are financed and operated
in a manner similar to private business enterprises - where the intent of the governing body is that the
costs (expenses, including depreciation) of providing goods or services to the general public on a
continuing basis be financed or recovered primarily through user charges; or (b) where the governing
body has decided that periodic determination of revenues earned, expenses incurred, and/or net income
is appropriate for capital maintenance, public policy, management control, accountability or other
purposes.
19
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1995
NOTE ll - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B. Fund Accounting - Continued
Internal Service Funds - Internal Service Funds are used to account for the financing of goods and
services provided to other departments or agencies of the County, on a cost -reimbursement basis.
Fiduciary Funds
Trust and Agency Funds - Trust ar.' Agency Funds are used to account for assets held by the County in
a trustee capacity or as an agent for individuals, private organizations, other governments, and/or other
funds. These include Agency Funds and an Expendable Trust Fund.
Account Groups
General Fixed Assets - To account for all fixed assets of the County, except fixed assets of proprietary
funds.
General Long -Term Debt - To account for all the outstanding principal balances of general and special
obligation bonds, capital leases, and compensated absences of the County, except long-term obligations
of proprietary funds.
C. Measurement Focus
Governmental Fund T=,
General, Special Revenue, Debt Service and Capital Projects Funds are accounted for on a "spending" or
"financial flow" measurement focus. This means that only current assets and current liabilities are
generally included on the balance sheets. Accordingly, the reported unreserved fund balance (net current
assets) is considered a measure of available, spendable or appropriable resources. Governmental Fund
Type operating statements present increases (revenues and other financing sources) and decreases
(expenditures and other financing uses) in net current assets.
Proiel=Fund Types
The Enterprise and Internal Service Funds and the discretely presented component unit are accounted for
on an "income determination" measurement focus. Accordingly, all assets and liabilities are included on
the balance sheet, and the reported fund equity (total reported assets less total reported liabilities)
provides an indication of the economic net worth of the fund. Proprietary Fund Type operating
statements present increases (revenues) and decreases (expenses) in total economic net worth.
20
Indian River County, Florida
NOTES TO FIN N IAI. STA MENTS. enntinueji
Year Ended September 30, 1995
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C. Measurement Focus - Continued
The Expendable Trust Fund is accounted for in the same inanner as the Governmental Fund Types. The
Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results
of operations.
Account Grouns
The General Fixed Assets Account Group and the General Long -Term Debt Account Group are
concerned only with the measurement of financial position. They are not involved with the
measurement of results of operations. Fixed assets, which are not used in Proprietary Fund operations,
are accounted for in the General Fixed Assets Account Group. Depreciation is not charged on the
general fixed assets. Long-term debts, which are not intended to be financed through the Proprietary
Funds, are accounted for in the General Long -Term Debt Account Group.
D. Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts
and reported in the financial statements. Basis of accounting relates to the timing of the measurements
made, regardless of the measurement focus applied.
All Governmental Funds are accounted for using the modified accrual basis of accounting. Under the
modified accrual basis, revenues are recognized when they become measurable and available as net
current assets. Primary revenues, including taxes, intergovernmental revenues, charges for services,
rents and interest are treated as susceptible to accrual under the modified accrual basis. Other revenue
sources are not considered measurable and available and are not treated as susceptible to accrual.
Expenditures are generally recognized under the modified accrual basis of accounting when the related
fund liability is incurred. An exception to this general rule is that principal and interest on general
long -teen debt is recognized when due.
PrQ rie = Funds
The Enterprise and Internal Service Funds and the discretely presented component unit are accounted for
using the accrual basis of accounting. Under this method, revenues are recognized when they are earned
and expenses are recognized when they are incurred. Unbilled utility receivables are recorded at year
end. The County applies all GASB pronouncements as well as all FASB Statements and Interpretations,
APB Opinions and Accounting Research Bulletins, issued on or before November 30, 1989, which do
not conflict with or contradict GASB pronouncements.
21
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1995
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
Fiduci= Funds
The Expendable Trust Fund and the Agency Funds are accounted for on the modified accrual basis.
If.. Cash and Investments
The County maintains a cash and investment pool that is available for use by all funds. This pool has
deposits and all highly liquid investments (including restricted assets) with maturities of ninety days or
less when purchased. In addition, longer -tern investments are held by several of the County's funds.
Pooled cash is classified as "Cash and Cash Equivalents", and pooled investments are combined with
other separate investments and classified as "Investments" in the financial statements. Cash and cash
equivalents and investments of Constitutional Officers are maintained in separate accounts, but have
been combined with the Board's cash and cash equivalents and investments for financial statement
purposes.
F. Investments
Investments consist of money market funds, U.S. Treasury Securities, U.S. Government Agency
Securities, various mortgage-backed securities such as collateralized mortgage obligations and
adjustable rate mortgage pools, the Local Government Surplus Funds Trust Fund and the Florida
Counties Investment Trust Fund. Investments are recorded at cost, or amortized cost, in the balance
sheet, except for investments held in the deferred compensation plan, which are reported at market.
G. Allowance for Doubtful Accounts
The County provides an allowance for water and sewer accounts receivable that may become
uncollectible. At September 30, 1995, this allowance was $393,551. The Housing Authority provides
an allowance for rents receivable which may become uncollectible which amounted to $16,064 at
September 30, 1995. No other allowances for uncollectible accounts are maintained since other fund
accounts receivable are considered collectible as reported at September 30, 1995.
H. Inventories
Inventories are valued at cost, which approximates market, using the "first -in, first -out" method of
accounting. The costs of General Fund and Expendable Trust Fund inventories are recorded as
expenditures when consumed rather than when purchased. Inventory of the Clerk of the Circuit Court,
included in the Combined Agency Funds, represents documentary stamps on consignment from the State
of Florida. Stamps are carried at cost, which is their face value.
22
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS Continued
Year Ended September 30, 1995
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
I. Property, Plant and Equipment
Property, plant and equipment purchased in the Governmental Fund Types are recorded as capital outlay
expenditures at the time of purchase. Such assets are capitalized at cost in the General Fixed Assets
Account Group, except for certain improvements other than buildings ("infrastructure") such as roads,
bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems. Donated and
confiscated assets are recorded in the General Fixed Assets Account Group at their fair market value at
the time received. No depreciation has been provided on general fixed assets.
The Board holds legal title for the general fixed assets used in the operations of the Board, Clerk of the
Circuit Court, Property Appraiser, Supervisor of Elections and Tax Collector, and is accountable for
them under Florida Law.
The Sheriff is accountable for and thus maintains general fixed asset records pertaining only to
equipment used in his operations. These assets have been combined with the Board's general fixed
assets in the General Fixed Assets Account Group.
Property, plant and equipment of the Proprietary Fund Types are recorded at cost. Donated property,
plant and equipment are capitalized at their fair market value at the time received. Depreciation is
provided using the straight-line method over the estimated useful lives of the various classes of
depreciable assets. The estimated useful lives of the various classes of depreciable assets are as follows:
A=
Years
Buildings and improvements 25-40
Machinery and equipment 3-10
Utility distribution systems 25-50
J. Capitalization of Interest
Interest costs related to bond issues are capitalized during the construction period. These costs are netted
against applicable interest earnings on construction fund investments. During the current period, the
Water and Sewer System Enterprise Fund incurred interest expense during the construction period
totaling $982,360. Related interest earnings on construction fund investments totaled $50,282 for the
net capitalized interest of $932,078.
K Unamortized Bond Costs
Bond issuance costs and legal fees associated with the issuance of Proprietary Fund revenue bonds are
amortized over the life of the bonds using the straight-line method of accounting.
23
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1995
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
L. Unamortized Bond Discounts
Bond discounts associated with the issuance of Proprietary Fund revenue bonds are amortized according
to the interest method, which results in a constant rate of interest being applied to the amount
outsim g at any given time. For financial reporting, unamortized bond discounts are netted against
the applicable long-term debt.
M. Intangible Assets
Land use rights were purchased by the Water and Sewer System Fund from the Golf Course Fund for
irrigating the golf course with treated effluent. Leachate disposal rights were purchased by the Solid
Waste Disposal Fund from the Water and Sewer System Fund for removal and transportation of leachate
from the County landfill to the sewer system. These assets are being amortized using the straight-line
method over the estimated useful life of 20 years.
N. Deferred Revenues
Deferred revenues reported in applicable Governmental Fund Types represent unearned revenues or
revenues which are measurable but not available and, in accordance with the modified accrual basis of
accounting, are reported as deferred revenues. The deferred revenues will be recognized as revenue in
the fiscal year they are earned or become available.
0. Accrued Compensated Absences
The County records compensated absences in the Governmental Fund Types as an expenditure for the
amount accrued during the year that would normally be liquidated with expendable available financial
resources. The liability is reported in the General Long -Term Debt Account Group. Proprietary Fund
Types accrue compensated absences in the period they are earned.
P. Obligation for Bond Arbitrage Rebate
Pursuant to Section 148(f) of the U.S. Internal Revenue Code, the County must rebate to the United
States Government the excess of interest earned from the investment of certain debt proceeds and
pledged revenues over the yield rate of the applicable debt. Based on calculations as of September 30,
1995, the County has no liability for arbitrage rebate on any of the county's outstanding debt.
24
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS-- Continued
Year Ended September 30, 1995
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
Q. Landfill Closure Costs
Under the terns of current state and federal regulations, the Solid Waste Disposal District (SWDD) is
required to place a final cover on closed landfill areas, and to perform certain monitoring and
maintenance functions for a period of up to thirty years after closure. The SWDD recognizes these costs
of closure and post -closure maintenance over the active life of each landfill area, based on landfill
capacity used during the period. Required obligations for closure and post -closure costs are recognized
in the Solid Waste Disposal District Enterprise Fund.
R. Contributions
The contributions accounted for in the Proprietary Fund Types represent contributions from other funds,
developers, state and federal capital grant programs, and impact fees charged to new customers for their
anticipated burden on the existing system. Depreciation expense on contributed fixed assets is reflected
in the statement of revenues, expenses and changes in retained earnings. Depreciation on contributed
fixed assets is transferred to the related contribution accounts (reducing contributions) instead of retained
earnings.
S. Budgets and Budgetary Accounting
The County uses the following procedures in establishing the budgetary data reflected in the financial
statements:
(1) The Constitutional Officers submit, at various times, to the Board and to certain divisions within
the Department of Revenue, State of Florida, a proposed operating budget for the fiscal year
commencing the following October 1. The operating budget includes proposed expenditures and
the means of financing them.
(2) The Department of Revenue, State of Florida, has the final authority on the operating budgets for
the Tax Collector and the Property Appraiser included in the General Fund.
25
Indian River County, Florida
NOTES TO FINN IAL. STATEMENTS . Continue
Year Ended September 30, 1995
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
S. Budgets And Budgetary Accounting - Continued
(3) On or before July 15 of each year, the Director of the Office of Management and Budget, as the
Board's designated budget officer, submits to the Board a tentative budget for the ensuing fiscal
year. The tentative budget includes proposed expenditures and the means of financing them. The
Board then holds workshops to review the tentative budget by fund on an object level.
(4) During September, public hearings are held pursuant to Section 200.065 of the Florida Statutes in
order for the Board to receive public input on the tentative budget. At the end of the last public
hearing, the Board enacts ordinances to legally adopt the budgets at the fund level for all
governmental and proprietary fund types. The budgets legally adopted by the Board set forth the
anticipated revenues by source and the appropriations by function.
(5) Formal budgetary integration on an object level is used as a management control device for the
governmental and proprietary funds of the County. Management is authorized to transfer budgeted
amounts between objects and departments in any fund as long as management does not exceed the
total appropriations of a fund. Board approval to amend the budget is only required when
unanticipated revenues are received that management wishes to have appropriated, thereby
increasing the total appropriations of a fund.
(6) Budgets for the governmental and proprietary fund types are adopted on a basis consistent with
generally accepted accounting principles.
(7) Appropriations for the County lapse at the close of the fiscal year.
26
Indian River County, Florida
CO FINANCIAL. STATEMENTS _ C
Year Ended September 30, 1995
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- Continued
& Budgets and Budgetary Accounting - Continued
(8) Revisions made to the original budget by the County for unanticipated
revenues were as follows:
Legally Ad*W
Original
Budget
Revised
Reserves and
Expenditure
911111111
Ameodmm11
awn
1randen
Allmaildam
General Fad
S Ste;1110
S 6711W
Special Revenue Funds:
j_53,051,1jQ
512.31.1.171
S 40.736 979
Rood lmpovananFace
Polios Acadatny Trust
6,931,000
93.434
1391,393
8,342,393
1,000,000
7,311,393
court kworvamant
17.500
-
220,771
93,434
238,271
93,434
83,271
Section I- Rental Assistance
Secondary Rada CatMrucdon
1,361,190
3,710,000
163,601
1,521,79/
89,606
I,I33,138
Transportation
8,606,376
26.237
3,740,000
8,632,633
2,372,387
831,780
1,361,113
7,780,353
Spacial Law Eaforamant
38.000
30,2%
13,2%
81,2%
Parka Diveloposent
Fula cy SwAces District
111,100
11,300,700
315,069
111,100
18.000
93.100
Treat Ordwassm Finn
46,000
11,115.769
833,777
10.991,992
Tourist Development
311,300
82,957
46.000
624.457
16.000
20,730
30.000
603,707
911 Swdwp
Mull Abse
369.491
116,021
369.491
%,071
273,417
Stow Noodng Initiatives
186,021
12,300
173,321
Partnership
Meaooiun Pbnning
250.000
138,111
403,144
108,111
orlwdistic e
Lead Ao*"Itim
233,053
14,100,000
233,053
233,053
mwti-iwomcdonw
14,Ioo,000
14.100.000
Task Face
Native Uplads Land
12.999
12.999
11.999
Acquisition
Vero Iaker F.atases Drainage Dianct
215,060
30,000
273,650
50.000
490,710
50.000
Public Records MOda 111=60 l
125,000
125,000
209,360
211,130
Non Ad Valorem Pr*m
113,131
10,451
125,000
Street Uoting Districts
117-111
1-600
1111.611
113,137
Total Special Revenue Fads
49216.695
2.972 M0
322611 e�3
11.737
156.376
Dab Service Fu11d1:
a7 71
46.540.164
RaRmdineand Improvement
6oeda
1,323.121
30.000
Tow Debt Service Fmds
1,383.121
50.006
1.435.121
1.431.121
1.135.122
Clow Roads Funds:
1.133.121
to" Riva Boulevard Nath
2,000.000
2.000.000
opuonel Saks Tex
5,516.653
133,000
3,669,633
200.000
Gifford3,669,633
Rad Conshuchon
100.11100
TOW Clow h0j" Funds
7.916.637
------0
400-000
2.%9.63r
50.000
360653
Enterprise Funds:
60.000
9-01964Solit
Sold Wowoucle Disposal Disoict
7,110,312
10,682
7,181,224
382,163
7,099,061
CoumyBuilding
2.793,664
132,349
6,487
3,935
2,102.131
136,184
61,469
2.734,632
Water A Sower
21.1162.612
60.000
21.111.642
836,131
Total Enterprise Funds
32.167.191
21.ao4
32.2/11.201
--LH2m
15,312622
Insernal Service Funds:
—L 2 9 392
26911.609
Flael Manaleaneat
1,129.229
1,129.229
Salfbtvjmwe
IA61.6a3
133..23
1.129,229
TOWbService Funds
. .2
15,3111
2n
.
2±3170
I 22AU
2.531702
TOW Primary 0ovarnan
waj=�
6
COMPONENT UNIT_
Nousia8 Authority
S
L—A=
27
'A
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1995
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
S. Budgets and Budgetary Accounting - Continued
(9) The following is a comparison of the revised budget to total expenses for the proprietary funds for
the fiscal year ended September 30,1995:
T. Total Columns on Combined Statements - Overview
Total columns on the combined statements are captioned "Memorandum Only" to indicate that they are
presented only to facilitate financial analysis. Data in these columns do not present financial position,
results of operations, or cash flows in conformity with generally accepted accounting principles. Neither
are such data comparable in a consolidation. Interfund eliminations have not been made in the
aggregation of these data.
28
Variance
Revised
Total
Favorable
Budo
Expcnses
(Unfavorable)
Prim= Government
Enterprise Funds:
Solid Waste Disposal
District
$7,099,061
$7,213,336
$(114,275)
Golf Course
2,734,682
2,640,863
93,819
County Building
836,184
806,474
29,710
Water and Sewer System
15,318,682
13,079,306
2,239,376
Internal Service Funds:
Fleet Management
1,129,229
1,047,482
81,747
Self Insurance
1,222,473
1,316,724
(94,251)
Component Unit
Housing Authority
823,339
779,049
44,290
T. Total Columns on Combined Statements - Overview
Total columns on the combined statements are captioned "Memorandum Only" to indicate that they are
presented only to facilitate financial analysis. Data in these columns do not present financial position,
results of operations, or cash flows in conformity with generally accepted accounting principles. Neither
are such data comparable in a consolidation. Interfund eliminations have not been made in the
aggregation of these data.
28
Indian River County, Florida
MOTES TO FMN .IA . STA M NT4 Continued
Year Ended September 30, 1995
NOTE 2 - CASH AND INVESTMENTS
The County maintains a cash and investment pool that is available for use by all funds except those
whose cash and investments must be segregated due to bond covenants or other legal restrictions.
A. Deposits
At September 30, 1995, the carrying amount of the Primary Government's deposits was $44,834,416 and
was made up of demand deposits, certificates of deposit, money market accounts, savings accounts and
petty cash. The component unit's deposits totaled $274,570 and were made up of demand deposits. All
deposits with financial institutions were 100% insured by federal depository insurance or by collateral
pursuant to the Public Depository Security Act of the State of Florida.
B. Investments
Florida Statutes, the County's Investment Policy, and various bond covenants authorize investments in
certificates of deposit, money market accounts, savings accounts, repurchase agreements, the Local
Government Surplus Funds Trust Fund administered by the Florida State Board of Administration,
Florida Counties Investment Trust Fund, obligations of the U.S. Government, obligations of government
agencies unconditionally guaranteed by the U.S. Government, obligations of the Federal Farm Credit
Banks, obligations of the Federal Home Loan Mortgage Corporation, including Federal Home Loan
Mortgage Corporation participation certificates, obligations of the Federal Home Loan Bank, obligations
of the Government National Mortgage Association, obligations of the Federal National Mortgage
Association and securities of any management type investment company or investment trust registered
under the Investment Company Act of 1940, 15 U.S.C. ss. 80a-1 et seq., provided the portfolio is limited
to U.S. Government obligations and to repurchase agreements fully collateralized by U.S. Government
obligations. Money market accounts, savings accounts, certificates of deposit, and bank balances are
reported as deposits above. The County invested in only these types of instruments during the fiscal
year.
All of the County's investments that can be categorized are Category 1, which gives an indication of the
level of credit risk assumed at year end. Category 1 is defined as insured or registered or for which the
securities are held by the County or its agent in the County's name. Investments in the Local
Government Surplus Funds Trust Fund, Florida Counties Investment Trust Fund, money market
accounts and guaranteed investment contracts are not categorized since the investments are not
evidenced by securities that exist in physical or book entry form.
The Local Government Surplus Funds Trust Fund is similar to a mutual fund in that funds are available
on a same day basis. As of September 30, 1995, the Local Government Surplus Funds Trust Fund had
650 local government participants with total investments of approximately $6.4 billion. The portfolio's
average maturity was 50 days.
29
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1995
NOTE 2 - CASH AND INVESTMENTS - Continued
B. Investments - Continued
The Florida Counties Investment Trust Fund is similar to a mutual fund in that funds are available on a
same day basis. As of September 30, 1995, the Florida Counties Investment Trust Fund had 22 local
government participants with total investments of approximately $215 million. The portfolio's average
maturity was 2.5 years.
Upon issuance of the Water and Sewer Bonds, Series 1993A and Series 19938, the County invested the
required sinking reserve monies, $3,139,285, in a guaranteed investment contract. This contract is for
the life of the bonds and has a rate of earnings slightly less than the arbitrage yield of the bonds.
Schedule of Investments at September 30, 1995
Carrying Market
Amount Value
U.S. Treasury Securities $ 4,234,473 $ 4,224,058
U.S. Government Agency Securities 35,878,916 34,581,689
Guaranteed Investment Contract 3,139,285 3,139,285
Money Market Account 13,466,096 13,466,096
Local Government Surplus Funds Trust Fund 20,483,179 20,483,179
Florida Counties Investment Trust Fund 5,,000.000 5.009.142
Total Investments $ 82-2 $ 80.90 •449
30
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1995
NOTE 2 - CASH AND INVESTMENTS - Continued
B. Investments - Continued
Collateralized mortgage obligations (CMOs) and adjustable rate mortgage pools (ARMs) are
investments used by the County to maximize yields and protect against rising interest rates. The CMOs
and the ARMs are based on cash flows from principal and interest payments on underlying mortgages.
The CMOs have a fixed interest rate; therefore, as interest rates rise, they will decline in value. The
ARMs have an adjustable interest rate based on an underlying index; therefore, they will normally retain
their value as interest rates change. Due to the increase in interest rates over the fiscal year, the CMOs
declined in value since their interest rates did not increase.
In addition to the cash and temporary cash investments listed above, employee deferred compensation
plan (see Note 11) cash and temporary cash investments were $2,497,314, which are carried at market
value. These investments are held separately from those of other County funds. As prescribed by the
plan documents, the investment portfolios include investment obligations of the U.S. Government,
mutual funds and money market accounts, and are held by the plan administrators but not in the
County's time.
NOTE 3 - PROPERTY TAX REVENUES
Property tax revenues recognized for the 1994-95 fiscal year were levied in October, 1994. Virtually all
unpaid taxes are collected via the sale of tax certificates prior to fiscal year end; therefore, there were no
material taxes receivable at fiscal year end.
Key dates in the property tax cycle (latest date where appropriate) are as follows:
Date of lien
Assessment roll certified
Property taxes levied
Beginning of fiscal year for which
taxes have been levied
Tax bills rendered
Collection period
31
Revenues for Fiscal Year
Ending September 0, 1995
January 1, 1994
October 14, 1994
October 31, 1994
October 1, 1994
October 31, 1994
November 1, 1994 -
March 31, 1995
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1995
NOTE 3. PROPERTY TAX REVENUES - Continued
Revenues for Fiscal Year
Ending Se ternber 30. 1995
Property taxes payable:
Maximum discount November 30, 1994
Due date March 31, 1995
Delinquent April 1, 1995
Tax Certificates sold on unpaid
property taxes June 1, 1995
NOTE 4 - PROPERTY, PLANT AND EQUIPMENT
A. General Fixed Assets
A Summary of changes in the General Fixed Assets Account Group follows:
Total
Buildings Property,
and Construction Plant and
Lmd Improvements Eaujp= In Progress
Balance at October 1,
1994 $20,436,382 $31,188,787 $19,188,448 $16,661,118 $87,474,735
Additions 1,966,120 18,455,840 2,222,269 2,483,071 25,127,300
Deletions - (875,242) (19115,323) (19, 90.565)
Balance at
September 30, 1995 jjj40e $49.644 G27 520 53 �$ 592.611 470
B. Proprietary Fund Type Fined Assets
A summary of proprietary fund type property, plant and equipment follows:
Prima Government:
Land
Buildings, distribution systems and
improvements
Equipment
Construction in progress
Total Property, Plant and Equipment
Less: Accumulated depreciation
Total Primary Government
14
32
Internal
Entelprisc ServictY
S 7,702,460 $ -
121,657,706
113,977
10,711,780
26,642,896
228,015
166,714,842
32,777,045
341,992
279.706
Indian River County, Florida
NOTES TO FINANCjAj CTATF .t NTS Continued
Year Ended September 30, 1995
NOTE 4 - PROP-ERTY, PLANT AND EQUIPMENT - Continued
B. Proprietary Fund Type Fixed Assets - Continued
Component snit: Internal
Land $ 4Service
Building and improvements 9,032,524
Equipment 244" 4g -
Total Property, Plant and Equipment 9,696,028
Less: ,Lccumulated depreciation 1
Total Component Unit
Total Reporting Entity S 142 S6
NOTE 5 - RESTRICTED CASH AND CASH EQUIVALENTS AND INVESTMENTS
Various bond coveanants, resolutions and state regulations require that the County restrict cash and cash
equivalents and investments within the Enterprise Funds. Restricted cash and cash equivalents and
investments are as follows:
Primary Government
Solid Waste Water
Disposal Golf County and Sewer
Sinking Funds$1,2D 40 488 CQ 718 Sid $4,453,812
Renew I d
a an
Replacement
1,718,114
Customer Deposits
34,264
Capital Construction
318,792
Closure and Mainte.
nance Costs
5,292,440
Insurance and property,
Tax Escrow
Component
Unit Entity
Housing
TQ1a1
$6,277,018 $ 18,290
366,786 - 1,053,793 3,138,693
23,720 1,057,392 1,115,3 76
97,208 - 240,416 656,416
5,292,440
170,077
22,798
Reporting
TQtal
$6,295,308
3,308,770
1,138,174
656,416
5,292,440
S8'6� S1.04�6.712� S6'8� S16.4� L 45 SSI
526 S16.7-16,659
33
4
Indian River County, Florida
NOTES TO FINANCIAL. STATEMENTS - Continued
Year Ended September 30,1995
NOTE 6 - PAYABLE FROM RESTRICTED ASSETS
Liabilities payable from the County's Enterprise Funds restricted assets listed above are as follows:
NOTE 7 - INTERFUND ACCOUNTS
The following is a summary of interfund receivables and payables as of September 30, 1995, which
includes Due To/Due From Other Funds:
Eund
General Fund
Special Revenue Funds:
Court Facilities
Transportation
Special Law Enforcement
Emergency Services District
Drug Abuse
Metropolitan Planning Organization
Vero Lakes Estates
NonAd Valorem Projects
Street Lighting Districts
� 34
I
$246,839 $208,748
5,315 -
54,002
19,603 -
142,165 -
799 10,000
- 63,067
803 -
- 24,887
2,463 -
Primary Government
Component
Reporting
Unit
Entity
Solid Waste
water
Disposal
Golf County
and Sewer
Housing
nostrict
Course Ruildina
Sysiem
Total
AuthoritX
Total
Accounts payable
S -
S - $ -
$1,962,372
$1,962,372
S 3,153
$1,965,525
Retainage payable
-
3,593 -
976,278
979,871
-
979,871
Accrued interest
payable
119,072
37,743
207,578
364,393
4,200
368,593
Bonds payable
(current portion)
580,000
280,000 -
1,165,000
2,025,000
170,000
2,195,000
Closure & maintenance
costs payable
5,292,440
- -
-
5,292,440
-
5,292,440
Customer deposits
34.264
23.720
1.057.392
1.115.376
20.302
1.135.678
UQ
WALQ
ULZ=
L=
ULM=
NOTE 7 - INTERFUND ACCOUNTS
The following is a summary of interfund receivables and payables as of September 30, 1995, which
includes Due To/Due From Other Funds:
Eund
General Fund
Special Revenue Funds:
Court Facilities
Transportation
Special Law Enforcement
Emergency Services District
Drug Abuse
Metropolitan Planning Organization
Vero Lakes Estates
NonAd Valorem Projects
Street Lighting Districts
� 34
I
$246,839 $208,748
5,315 -
54,002
19,603 -
142,165 -
799 10,000
- 63,067
803 -
- 24,887
2,463 -
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1995
NOTE 7 - INTERFUND ACCOUNTS - Continued
Capital Project Funds:
Optional Sales Tax
Gifford Road Construction
Enterprise Funds:
Solid Waste Disposal District
Water and Sewer System
Internal Service Funds:
Self Insurance
Agency Funds:
Clerk of the Circuit Court
Sheriff
Tax Collector
Totals
NOTE 8 - LONG-TERM DEBT
A. Primary Government
$2,000,000 $
500,000 -
82,499
1,872 3,500,000
1,000,000 -
79,742
35,082
—134.1334
54.0 S4.05�6.360�
The County has adopted resolutions for bonds payable that provide for various covenants. The
covenants are listed below for each bond payable.
Pledge of Revenue - The Series 1988 bonds are payable from and collateralized by a lien on net revenues
of the system, including the proceeds derived from the collection of disposal charges which are annual
assessment charges against assessable property for the disposal of solid waste.
Establishment of Various Accounts - Pursuant to certain covenants, the County has established and
maintains the following accounts:
(1) Operating account to pay all operating and maintenance costs of the system.
(2) Sinking Fund account to pay principal and interest payments coming due during the current fiscal
year.
(3) Reserve account to accumulate an amount equal to the maximum amount of principal and interest
coming due in any ensuing fiscal year.
35
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS Continued
Year Ended September 30, 1995
NOTE 8 - LONG-TERM DEBT - Continued
A. Primary Government - Continued
(4) Rawwal and Replacement Fund and capital projects account to pay for the costs of enlargements,
replacements or emergency repairs to the system. The amounts to be maintained in these accounts
are determined by consulting engineers. The amounts in these accounts are restricted by the bond
resolution.
Other Covenants - The resolution provides for several additional covenants such as required revenue
rates, minimum insurance levels, adoption of annual budget, and certain required engineering reports.
Bonds Issued - At September 30,1995, the revenue bonds consisted of the following:
Interest
Outstanding at
Rates and
Original September 30,
Description Rate
Maturity Issue 122
1988 Solid Waste Disposal 5.25-7.4%
System Revenue Bonds 6/1 and 12/1
6/1/02 $8,240,000 $5,020,000
Less: Current portion
Long -Term Portion
Optional Redemption - The revenue bonds maturing on or after June 1, 1997, are subject to redemption
prior to maturity, at the option of the County on and after June 1, 1996, in whole or in part, at any time,
on any interest payment date at par plus accrued interest and plus a premium ranging between 0% and
2% depending on the year of redemption.
Recreational (.olf Course) Revenue Refunding Bonds, Series 199
Pledge of Revenue - The revenue bonds are collateralized by a lien on the net revenues derived from the
operations of the project and racetrack and jai alai fronton funds accruing annually to the County.
Establishment of Various Accounts - Pursuant to certain covenants, the County has established and
maintains the following accounts:
(1) Operating account to reflect all transactions which relate to the project
36
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1995
NOTE 8 - LONG-TERM DEBT - Continued
A. Primary Government - Continued
Recreational (Golf Course) Revenue Refunding Bonds -Series 199 Continued
(2) Sinking Fund account to pay principal and interest coming due during the current fiscal year. The
amounts in this account are restricted by the bond resolution.
(3) Reserve Fund account to accumulate an amount equal to the maximum amount of principal and
interest coming due in any ensuing fiscal year. This account may be established at the option of the
Board of County Commissioners. The amounts in this account are restricted by the bond
resolution.
(4) Renewal and Replacement Fund account to pay for the costs of extensions, enlargements, additions,
replacements or emergency repairs to the system. The amounts deposited into this account are
detemained by the County Administrator. The amounts in this account will be restricted by the
bond resolution and may be withdrawn only upon the authorization of the County Administrator.
Other Covenants - The bond resolution provides for additional covenants such as an annual audit
requirement, rate covenant tests and minimum insurance levels.
Bonds Issued - At September 30, 1995, the revenue bonds consisted of the following:
Optional Redemption - The Revenue Bonds, maturing on or after September 1, 2004 (except the Series
1993 Term Bonds maturing on September 1, 2016) are subject to redemption prior to maturity, at the
option of the County on and after September 1, 2003, in whole or in part, at any time, on any interest
payment date at par plus accrued interest and plus a premium ranging between 0% and 2% depending on
the year of redemption.
37
S
Interest
Outstanding at
Rates and
Original September 30,
Description
D,= maturity
Issue 1.22
1993 Recreational Revenue
2.80-5.25% 9/1/16
$9,875,000 $9,325,000
Refunding Bonds
3/1 and 9/1
Less: Current portion
280,000
Unamortized discount
309,57,7_
Long -Term Portion
58.7
Optional Redemption - The Revenue Bonds, maturing on or after September 1, 2004 (except the Series
1993 Term Bonds maturing on September 1, 2016) are subject to redemption prior to maturity, at the
option of the County on and after September 1, 2003, in whole or in part, at any time, on any interest
payment date at par plus accrued interest and plus a premium ranging between 0% and 2% depending on
the year of redemption.
37
S
Indian River County, Florida
NOTES TO FINANCIAL. STATEMENTS - Continued
Year Ended September 30,1995
NOTE 8 - LONG-TERM DEBT - Continued
A. Primary Government - Continued
Water and Sewer Revenue Bonds Series 1993A and 1993H
Pledge of Revenues - The revenue bonds are collateralized by a pledge of all net revenues derived from
the operation of the system.
Establishment of Various Accounts - Pursuant to certain covenants, the County has established and
maintains the following:
(1) Revenue Fund account to pay all operating and maintenance costs of the system.
(2) Sinking Fund account to pay principal and interest coming due during the current fiscal year. The
amounts in this account are restricted by the bond resolution.
(3) Reserve Fund account to accumulate an amount equal to the maximum amount of principal and
interest coming due in any ensuing fiscal year. An initial deposit was made from bond proceeds
with the remainder derived from operating revenues. The amounts in this account are restricted by
the bond resolution.
(4) Renewal and Replacement Fund account to pay all costs of extensions, enlargements, additions or
replacement of capital assets of the system and for emergency repairs to the system.
Bonds Issued - At September 30, 1995, the revenue bonds consisted of the following:
Interest
Outstanding at
Rates and
Original September 30,
Description bate
Maturity Issue 1.225
Water and Sewer 2.60%-6.50%
Revenue Bonds, 3/1 and 9/1
2024 $47,190,000 $45,475,000
Series 1993A
Series 1993B 2.600/o-4.800/0
3/1 and 9/1 2000 3,330,000 2.100,000
550.5 47,575,000
Less: Current portion 1,165,000
Unamortized bond
discount 1,697.530
Long -Term Portion
38
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS Continued
Year Ended September 30, 1995
NOTE 8 - LONG-TERM DEBT - Continued
A. Primary Government - Continued
Optional Redemption - The revenue bonds, Series 1993A, maturing on or after September 1, 2009 are
subject to redemption prior to maturity, at the option of the County on and after September 1, 2008, in
whole or in part, at any time, on any interest payment date at par plus accrued interest and plus a
premium ranging between 0% and 2% depending on the year of redemption.
Extraordinary Mandatory Redemption - The revenue bonds, Series 1993B, are subject to extraordinary
mandatory redemption, in whole or in part, on any interest payment date, from monies received on
prepayments of special assessments, at par plus accrued interest.
B. Discretely Presented Component Unit
On April 1, 1986, August 23, 1988, and July 16, 1991, the Housing Authority adopted resolutions
authorizing the issuance of revenue bonds payable to the U.S. Department of Agriculture, Farmers Home
Administration, for the purpose of financing a part of the cost of acquiring, erecting and constructing
low -rent, multi -family housing facilities (Victory Park Apartments - Phase 1 and Phase II and
Orangewood Park Apartments), including the repayment of certain notes payable to the State of Florida
for the acquisition of land. The bond and interest thereon are payable solely from and collateralized by a
prior lien upon and a pledge of the gross revenues to be derived from the projects. The revenue bond
resolution provides for the following:
Bonds Issued - The revenue bond obligation consists of:
39
Original
Balance
Interest
Revenue
Outstanding
DescLpIl4D
Rate
Bond
September 30,
Indian River County
and Rates
1% per annum on
Commitment
122
Housing Authority
the unpaid balance
Revenue Bonds:
payable September 1
each year
Victory Park
Phase I
Victory Park
$1,908,000
$1,527,000
Phase II
Orangewood Park
11908,000
1,583,000
Apartments
2,006.4QQ
1,937,40n
Less: Current portion
LW"M
4,947,400
170.000
Long -Tenn Portion
S4
39
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1995
NOTE 8 - LONG-TERM DEBT - Continued
B. Dheretely Presented Component Unit - Continued
Optional Redemption - Each revenue bond is redeemable at the option of the Housing Authority at par
plus accrued interest and plus a premium ranging between 0% and 50/a, depending on the year of
redemption and the holder of the bond at the time of redemption.
The Housing Authority may redeem, in whole or in part, at any time, the principal portion of each
revenue bond on any interest payment date, at the price of par plus accrued interest, without premium if
the bond is held by the U.S. Department of Agriculture, Farmers Home Administration.
Establishment of Various Accounts - The Loan and Grant Resolution provides for the creation and
establishment of the following accounts, which are to be deposited with a depository in the State of
Florida, which is a member of the Federal Deposit Insurance Corporation and which is eligible under the
laws of the State of Florida to receive public funds:
(1) Revenue Account to deposit all gross revenues and provide for payment of costs of operation and
maintenance of the project.
(2) Bond Service Accounts:
The revenue bond resolutions provide for the following:
• Interest Account to deposit monthly from Revenue Account 1/12 of all interest coming due on
the next interest payment date.
• Principal Account to deposit monthly from Revenue Account 1/12 of the principal amount
which will become due on such annual maturity date.
• Renewal, Replacement and Improvement Account to deposit from the Revenue Account
$6,000 per month. In addition, at the end of each fiscal year, all excess funds remaining in the
Revenue Account are deposited in the Renewal, Replacement and Improvement Account until
the amount on deposit equals $720,000.
• The revenue bonds do not constitute a lien upon the project or any part thereof or upon any
other property of the Housing Authority or a pledge of the full faith and credit of the Housing
Authority.
40
Indian River County, Florida
NOTES TO FINANCIAL. STATEMENTS - Continued
Year Ended September 30, 1995
NOTE 8 - LONG-TERM DEBT - Continued
B. Discretely Presented Component Unit - Continued
The Housing Authority collects fees, rentals and other charges for the use of the facilities of the
project, and out of such funds pays the principal of and interest on the land, the necessary
expenses of operation and maintenance, and all reserve and sinking fund requirements. Fees,
rentals and other charges will not be reduced so as to be insufficient to provide funds for such
purposes. The Housing Authority did not meet all of the required monthly reserve deposits and
insurance escrow deposits as set forth in the bond resolution.
• Monies in any account created in the resolution may be invested in authorized investments
which mature not later than 15 days prior to the dates on which the monies will be needed for
the purpose of such fund. Investments authorized pursuant to the resolution include direct
obligations of the U.S. Government and bonds, debentures or notes backed by the full faith and
credit of the U.S. Government.
C. Annual Debt Service Payments - Enterprise Fund Bonds Payable
The annual debt service payments to amortize the bonds payable outstanding at September 30, 1995, are
as follows:
Fiscal Year
Ending
Sptember 30.
19%
1997
1998
1999
2000
2001-2005
2006-2010
2011.2015
2016.2020
2021.2025
Totals
Less: Amounts repre-
senting interest
Total Bonds Payable
Leu: Current portion
Unamortized
bond discount
Primary Government
Component
Reporting
1fIIit
lEafiU
Solid Waste
Recreational
Water and
Disposal
(Golf Course)
Sewer
System
Refunding
Revenue
Revenue
Revenue
Refunding
Housing
Bands
Ennds
Bunds
Tstal
Authori
TQtal
$937,215
$732,918
$3,655,934
$5,326,067
$219,474
$5,545,541
938,355
732,417
3,636,828
5,307,600
219,774
5,527,374
935,575
730,818
3,617,215
5,283,608
219,054
5,502,662
939,375
733,517
3,599,335
5,272,227
219,324
5,491,551
938,%5
729,972
3,582,440
5,251,377
219,574
5,470,951
1,878,995
3,671,603
15,701,790
21,252,388
1,097,950
22,350,338
-
3,666,095
15,707,385
19,373,480
1,096,450
20,469,930
-
3,657,500
15,709,125
19,366,625
1,095,670
20,462,295
-
493,500
15,703,638
I im.000
16,197,138
11,093.000
1,024,390
225.842
17,221,528
6,568,480
15,148,340
92,006,690
113,723,510
5,637,502
ILUB,Q
119,361,012
1.548.480
5,020,000
5,823.340
9,325,000
44,431,690
47,575,000
51.803.510
61,920,000
_690-102
4,947,400
JL42=
66,867,400
580,000
280,000
309.577
1,165,000
1,697.530
2,025,000
2,007.107
170,000
2,195,000 1
2.007.107
UA=
LLZ&Q
41
199,U=
S 57M
S 4,777-400
`
Indian River County, Florida
NATES TO FINANCIAL. STATEMENTS _ Continued
Year Ended September 30, 1995
NOTE 8 - LONG-TERM DEBT - Continued
D. Changes in General Long -Term Debt
A summary of changes in general long-term debt follows:
Balance Balance
October 1, September 30,
1924 Additions Deletions I
Accrued Compensated
Absences:
Board
Clerk of the Circuit Court
Property Appraiser
Sheriff
Supervisor of Elections
Tax Collector
Compensation Payable:
Sheriff
Capital Leases:
Property Appraiser
Sheriff
Tax Collector
Bonds Payable:
Refunding and
Improvement Revenue
Bonds -1985 Series
Refunding Revenue
Bonds -1992 Series
General Obligation
Bonds -1995 Series
Totals
$1,196,347 $89,390
$ - $1,285,737
90,079 7,061
- 97,140
47,863 -
19,857 28,006
608,150 236,232
- 844,382
3,310 -
41.067
-1•x.816 332,693
1,644 1,666
4.981 36086
_26,492 2-293-017
46.758
246,027 -
107,932 -
249.032
353.959 249.032
3,780,000
6,730,000 -
15.000.000
10.510.000 15.000,000
EL
42
116,445 129,582
107,932 -
14.405 234.627
238.782 364.209
220,000 3,560,000
480,000 6,250,000
15.000,000
700.000 24-910.000
51.012.022 527-4
Indian River County, Florida
NOTES TO FIN NCIAI. STATEMENTS - Contin ed
Year Ended September 30,1995
NOTE 8 - LONG-TERM DEBT - Continued
E. General Long -Term Debt
0n November 1, 1985, the Board issued $9,855,000 of Refunding and Improvement Bonds, 1985 Series.
The proceeds of this issue legally defeased the County's Capital Improvement Revenue Bonds, Series
1980 and 1981, and provided funds to finance the cost of construction and to reimburse the County for
certain capital projects. The bonds and interest thereon are payable solely from and collateralized by a
first lien upon and pledge of the County's half -cent sales tax and related investment income.
(1) The Revenue Bonds consist of:
(2) Disbursements or expenditures of bond proceeds which have been designated as construction funds
shall be made only after written approval of the County Administrator or his designee.
(3) Establishment and maintenance of various funds -
• Revenue Fund to record County sales tax monies received by the County from the State.
• Sinking Fund to pay principal and interest payments coming due during the current fiscal year.
The amounts in this account are restricted by the bond resolution and thus, a reserve of fund
balance has been established for them.
(4) Other covenants - The resolution provides for several additional covenants such as required books
and records and an annual audit.
43
Interest
Outstanding at
Rate
Original
September 30,
Description
and Rates
maturity
ISSug
1221
Refunding and Improvement
Revenue Bonds, 1985 Series -
5.5%-8.75%
Serial Bonds
9/1 & 3/1
1997
$4,000,000
$ 490,000
Term Bond
9/0
2000
1,735,000
910,000
Term Bond
9.125%
2002
1,440,000
755,000
Term Bond
9.125%
2005
2,680.000
S9.8�
1.405,000
53.5
(2) Disbursements or expenditures of bond proceeds which have been designated as construction funds
shall be made only after written approval of the County Administrator or his designee.
(3) Establishment and maintenance of various funds -
• Revenue Fund to record County sales tax monies received by the County from the State.
• Sinking Fund to pay principal and interest payments coming due during the current fiscal year.
The amounts in this account are restricted by the bond resolution and thus, a reserve of fund
balance has been established for them.
(4) Other covenants - The resolution provides for several additional covenants such as required books
and records and an annual audit.
43
Indian River County, Florida
NOTES TO FINANCIAL. STATEMENTS - Continued
Year Ended September 30, 1995
NOTE 8 - LONG-TERM DEBT - Continued
E. General Long -Term Debt - Continued
On December 8, 1992, the Board issued $7,530,000 of Refunding Revenue Bonds, Series 1992. 'Me
proceeds of this issue legally defeased a portion of the County's Refunding and Improvement Bonds,
Series 1985 and all of the County's Improvement Revenue Bonds, Series 1987. The bonds and interest
thereon are payable from and collateralized by a pledge of the County's half -cent sales tax and related
investment income. However, the Series 1992 Bonds are secured on a parity with the remaining
outstanding Series 1985 Bonds.
(1) The Refunding Revenue Bonds consist of:
Interest Outstanding at
Rates and Original September 30,
Demcripflon D= Maturity is= 122
Refunding Revenue 2.70%-5.85%
Bonds, Series 1992 3/1 & 9/1 2005 S S
(2) Establishment and maintenance of various funds -
• Revenue Fund to record County sales tax monies received by the County from the State.
• Sinking Fund to pay principal and interest payments coming due during the current fiscal year.
The amounts in this account are restricted by the bond resolution and thus, a reserve of fund
balance has been established for them.
(3) Other Covenants - The resolution provides for several additional covenants such as required books
and records and an annual audit.
Cif
Indian River County, Florida
NOTES TO FINANCIAL. STATEMENTS - Continue
Year Ended September 30, 1995
NOTE 8 - LONG-TERM DEBT - Continued
E. General Long -Term Debt - Continued
On July 11, 1995, the Board issued $15,000,(100 of CTeneral Obligation Bonds, Series 1995. The
issuance of the Series 1995 Bonds was approved by a majority of votes cast in a bond referendum held
on November 2, 1992, by the qualified electors of the County. The referendum authorized a total of
$26,000,000 aggregate principal amount of general obligation bonds, in one or more series, of which the
Bonds are the first. The proceeds of this issue will provide funds to acquire by purchase, interest in
environmentally significant lands, together with the necessary restoration, remediation and reclamation
activities to preserve and enhance such property and customary and necessary costs incurred in the
acquisition. The principal and interest on the bonds are payable from ad valorem taxes levied by the
County upon the taxable real and personal property of the County.
(1) At September 30,1995, General Obligation Bonds consisted of the following:
Interest Outstanding at
Rates and Original September 30,
Description I22k Maturity L= i
General Obligation
Bonds, 1995 3.50%-5.00%
Series 1/1 and 7/1 2010 515.0 SISQO
(2) Disbursements or expenditures of bond proceeds shall be made only after approval by the Board.
(3) The Resolution requires the creation of a Debt Service Fund, which will be held and administered
by the County solely for the purpose of paying the principal, premium, if any, and interest on the Bonds,
as they become due.
Optional Redemption - The General Obligation Bonds, Series 1995, maturing on or after July 1, 2004,
are subject to redemption prior to maturity, at the option of the County on and after July 1, 2003, in
whole or in part, at any time, on any date at par plus accrued interest and plus a premium ranging
between 010 and 2% depending on the year of redemption.
45
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1995
NOTE 8 - LONG-TERM DEBT - Continued
E. General Long -Term Debt - Continued
Anne Debt Service Payments - General Long -Ter„ Debt
The annual debt service requirements to amortize all revenue bonds and general obligation bonds
outstanding at September 30,1995, are as follows:
Revenue Bonds
Refunding General
Fiscal Year and Refunding Obligation
Ending Improvement Revenue Bonds
September -& 1985 Series 1992 Series 1995 Serie
1996
$ 556,581
1997
556,312
1998
559,000
1999
553,800
2000
556,800
2001-2005
2,785,063
2006-2010
Totals
5,567,556
Less: Amounts
representing interest
2,007.556
$ 821,401
825,901
822,276
827,070
824,470
4,121,350
8,242,468
$ 1,407,227
1,407,028
1,414,090
1,412,890
1,414,680
7,124,685
21,383,350
low
$ 2,785,209
2,789,241
2,795,366
2,793,760
2,795,950
14,031,098
35,193,374
The revenue bonds and general obligation bonds are reported in the General Long -Tenn Debt Account
Group since they do not represent obligations of any governmental or proprietary fund types.
46
Indian River County, Florida
NOTES TO FINANCIAL. STATEMENTS - Continued
Year Ended September 30, 1995
NOTE 8 - LONG-TERM DEBT - Continued
F. Summary of Defeased Debt Outstanding
The following outstanding revenue bonds are legally defeased. Since governmental obligations are
held in escrow for the payment of principal and interest, the bonds are not liabilities of the County.
Outstanding Retired Outstanding
at During at
September 30, Fiscal Year September 30,
1224 im 122
Capital Improvement Revenue Bonds:
Series 1980 S3.5 100.000
Series 1981 S 5 Q Q 470.000
Series 1987 52.6 S 170 0002.52
Refunding and Improvement
Revenue Bonds, Series 1985 53.425 OOOa S 1 53.2
Recreational Revenue Bonds:
Series 1985 52.5 52.5_
Series 1991 55.8 S 1 5.7G0.000
Special Assessment Revenue Bonds:
Series 19894 24 S 6 53.6
Series 1990 S 4 360.000
Water and Sewer Revenue Bonds,
Series 1991 58.9 U= 58.7�35�0�00
Water and Sewer Revenue
Refunding Bonds, Series 1989 5 95.000 SG•0
47
Indian River County, Florida
NOTES TO FINANCIAL. STATEMENTS - Continued
Year Ended September 30,1995
NOTE 8 - LONG-TERM DEBT - Continued
G. Capital Leases and Notes Payable
General Long -Term Debti al Leages
The County has entered into several lease -purchase agreements to purchase various types of equipment
with lease terms varying from 24-60 months.
The following is a schedule of future minimum lease payments under capital leases, together with the
present value of the net minimum lease payments, as of September 30,1995:
Year Ending
Property
September 30;
Appraise
Tax Collector
Total
1996
$ 57,436
$ 57,620
$115,056
1997
45,317
57,620
102,937
1998
38,022
57,620
95,642
1999
-
57,620
57,620
2000
43.216
43.216
Total Minimum Lease
Payments
140,775
273,696
414,471
Less: Amount representing
interest
11193
39.069
50.262
Present Value of Net
Minimum Lease Payments
S 12
5234627
S3
The following is an analysis of the leased property under capital leases:
Capitalized Cost
Type of
Property
Propcm
ARptahei
Tax Collector
IQW
Computer equipment
$469,904
$249,033
$718,937
Automotive equipment
21'348
549
49.033
21-349
874
The equipment listed above is recorded in the General Fixed
Assets Account Group.
48
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1995
NOTE 8 - LONG-TERM DEBT - Continued
H. Conduit Debt Obligations
From 1982 until 1987, Indian River County issued Industrial Revenue Bonds to provide financial
assistance to private -sector entities for the acquisition, construction and equipping of industrial and
commercial facilities deemed to be in the public interest. These facilities included two nursing hones,
two utility systems, and three manufacturing facilities, for a total of seven series of industrial revenue
bonds. The bonds are secured by the property financed and are payable solely from payments received
on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities
transfers to the private -sector entity served by the bond issuance. Neither the County, the State, nor any
political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the
bonds are not reported as liabilities in the accompanying financial statements.
As of September 30, 1995, the County was unable to determine the current outstanding balance of the
seven series of Industrial Revenue Bonds issued; however, the original principal amount of the bonds
and the project (or firm) on whose behalf the bonds were issued is as follows:
$fid Issue YCHi Bonds and Project Description
$850,000 1982 Robert H. Davis & William A. Davis - Rampmaster
Light metal material handling plant
$4,000,000 1983 General Development Utilities - sewerage services
$2,400,000 1983 Florida Health Facilities Corp. - 120 -bed nursing home
$1,000,000 1983 Hutchinson Utilities - sewerage facility at The Moorings
$2,500,000 1984 Hetra Computer & Communications Industries, Inc. -
40,000 sq. ft. manufacturing facility
$4,800,000 1986 Florida Convalescent Centers, Inc. - 91 -bed skilled and
intermediate care nursing home
$913,000 1988 Profold, Inc. - manufacturing facility
49
Indian River County, Florida
NOTES TO FINANCIAL. STATEMENTS Continued
Year Ended September 30,1995
NOTE 9 - PROVISION FOR CLOSURE COSTS
Current regulations of the U.S. Environmental Protection Agency (EPA) and the Florida Department of
Environmental Protection (FDEP) require the Solid Waste Disposal District (SWDD) to place a final
cover on closed landfill areas, and to maintain those areas for up to thirty years after closure. The
SWDD recognizes the expenses associated with the final closure and post -closure maintenance of the
landfill area over the active life of those areas. These costs are recognized in each operating period
based on the amount of capacity used during that period, regardless of when cash disbursements are
made for these costs.
The SWDD annually obtains updated and revised estimates of total future closure and post -closure costs
from its consulting engineers. The provision for closure costs reported in the financial statements as
operating expense represents the portion of these estimated future outlays which are allocable to the
current year based on the amount of capacity used.
The total unrecognized closure and post -closure costs attributable to the currently active landfill area
(Segment II) are approximately $1.8 million. These costs will be recognized in future periods as the
remaining capacity is filled. This landfill area is expected to close in the year 1997. To date, 72% of the
landfill capacity has been filled.
All amounts recognized are based on what it would cost to perform all closure and post -closure
functions in current dollars. Actual costs may be different due to inflation, changes in technology, or
changes in laws and regulations. The SWDD is required by FDEP to annually show proof of ability to
finance closure and post -closure costs, and has done so by fulfilling the requirements of the financial test
provision of the regulation. At the same time, the SWDD is making annual deposits to a closure cost
account to provide for the financing of future closure -related expenditures. The balance in the account,
as of September 30, 1995, was $2,709,360.
NOTE 10 - DEFINED BENEFIT PENSION PLANS
Indian River County participates in the Florida Retirement System and the Firefighters Pension Plan.
During the current year the County implemented GASB 27, Accounting for Pensions by State and Local
Government Employ.
A. Florida Retirement System
Plan Description, The County's employees, except certain firefighters, participate in the Florida
Retirement System (FRS), a cost-sharing multiple -employer public employee retirement system,
administered by the Florida Department of Administration. The FRS is noncontributory for all
members; all contributions are made by the employer. The FRS provides retirement and disability
benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries.
50
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30,1995
NOTE 10 - DEFINED BENEFIT PENSION PLANS - Continued
Florida Statutes Chapter 121, as may be amended from time to time by the state legislature, determines
contribution rates for the various membership classes of the FRS. The FRS issues a publicly available
financial report that includes financial statements, ten-year historical trend information and other
required supplementary information. That report may be obtained by writing to the Department of
Administration, Division of Retirement, Cedars Executive Center, Building C, 2639 North Monroe
Street, Tallahassee, Florida 32399-1560.
Funding Policy: The FRS has five classes of membership with descriptions and contribution rates in
effect during the period ended September 30, 1995 as follows (contribution rates are in agreement with
the actuarially determined rates):
Period
10/1/94 1/1/95
Regular Class - Members not qualifying for
other classes.
17.66%
17.57%
Senior Management Service Owns - Members
of senior management who do not elect the
optional annuity retirement program.
23.63%
24.54%
Spr&L iak Class -Members employed as
law enforcement officers, firefighters, or
correctional officers and meet the criteria
set to qualify for this class.
27.590/a
27.49%
Snec'al Risk Admin'strattove quppgrt Clan .
Special risk members who are transferred or
reassigned to non -special risk and meet the
criteria.
19.15%
18.47%
Flected County ofii ees _I as - Certain
elected county officials
26.63%
28.14%
Contributions to the FRS, for the fiscal year ended September 30, 1995, were equal to 21.1% of the
annual covered payroll. Contributions to the FRS for the fiscal years ended September 30, 1993, 1994
and 1995, were $6,480,038, $6,656,969 and $6,967,324, respectively, which are equal to 100% of the
required contribution for each year.
31
Indian River County, Florida
NOTES TO FIN NC A1. STATEMENT - Continued
Year Ended September 30, 1995
NOTE 10 - DEFINED BENEFIT PENSION PLANS - Continued
B. Firefighters Defined Benefit Pension Plan
In October 1981, the South Indian River County Fire District took over the operations of the City of
Vero Beach, Florida's Fire Department. Full-time firefighters were given the option of joining the
Florida Retirement System (FRS) or remaining in the City's plan. Twenty full-time firefighters and all
of the volunteers elected to remain in the City's plan. Those who joined the FRS received refunds
of their contributions from the City's plan. Indian River County contributes to the City's plan, on behalf
of eligible firefighters, which is a single -employer defined benefit pension plan. The City administers
the plan, and by statute, retains fiduciary responsibility for this plan.
The City accounts for the plan in a pension trust fund. The City's Comprehensive Annual Financial
Report (CAFR) includes the required financial statements and required supplementary information for
the plan. A copy of the City's CAFR may be obtained from the Finance Department of the City of Vero
Beach, 1053 With Place, Vero Beach, FL 32960.
Funding Policy and Annual Pension Cost: The City establishes and may amend the contribution
requirements of plan members and the City in accordance with Florida Statutes. Indian River County's
annual pension cost for the current year and related information for the plan is as follows:
Contribution rates:
Employee
7%of Compensation
state
Premium Tax Refund
Employer
None Required
Annual Pension Cost
$124.209
Contributions made
$ 124,209
Actuarial valuation date
October 1, 1994
Actuarial cost method
Aggregate actuarial cost method
Amortization method
N/A
Remaining unionization period
None
Asset valuation method
Market value less unrecognized capital appreciation,
Where capital appreciation is recognized at the rate of
20% per yew
Aawarial assumptions:
Investment rate of return 8%
Projected salary increases 6%
52
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30,1995
NOTE 10 - DEFINED BENEFIT PENSION PLANS - Continued
Three Year Trend Information:
Year Ending
September 30, 1993
September 30, 1994
September 30, 1995
Annual Pension Cost
(API
$ 104,019
$144,421
$ 124,209
NOTE 11- DEFERRED COMPENSATION PLANS
Percentage
of APC
Contributed
Net Pension
Oblivion
100%
$ -
100%
$ -
100%
$ -
The County offers its employees deferred compensation plans created in accordance with the Internal
Revenue Code, Section 457. The plans permit them to defer a portion of their compensation until future
years. The monies placed in the deferred compensation plans are not available to employees until
tettnirtation, retirement, death, or an unforeseeable emergency.
All amounts of compensation deferred under the plans, all property and rights purchased with those
amounts, and all income attributable to those amounts, property, or rights are, until paid or made
available to the employee or beneficiary, solely the property and rights of the County, subject only to the
claims of the County's general creditors. Participants' rights under the plans are equal to those of general
creditors in an amount equal to the fair market value of the deferred account for each participant.
The County has no liability for losses under the plans, but does have the duty of due care that would be
required of an ordinary prudent investor. The County believes that it is unlikely that it will use the
assets to satisfy the claims of general creditors in the future.
53
Indian River County, Florida
NOTES TO FINANCIAL. STATEMENTS - Continued
Year Ended September 30, 1995
NOTE 12 - SEGMENT INFORMATION
The County maintains Enterprise Funds for its Solid Waste Disposal District, Golf Course, County
Building and Water and Sewer System Funds and its Component Unit Housing Authority Fund.
Segment information for the year ended September 30, 1995, is as follows:
54
Primary Government
Component
Reporting
U1111
Entity
Solid Waste
Water
Disposal
Golf
County
and Sewer
Housing
District
Courst:
9uildiag
SYSIM
Tots)
Authority
Tole)
Operating Revenue
$8,070,781
$2,663,201
$984,398
$13,502,262
$25,222,642
$617,438
$25,840,080
Operating Grant Revenue
262,393
-
-
4,561
266,936
-
266,936
Operating Depreciation
Expense
1,497,343
230,336
21,940
4,696,058
6,445,877
300,222
6,746,099
Operating Income
(Loss)
1,271,260
509,530
177,924
2,039,033
4,017,767
(102,944)
3,914,823
Operating Transfers from
Primary Government
-
-
89,107
89,107
Net Income (Loss)
1,720,984
101,839
219,364
2,169,194
4,211,381
(66,622)
4,144,939
Fixed Assets:
Additions
1,393,206
80,999
26,127
27,066,386
28,366,908
2,273
28,369,181
Deletions - net of
accumulated
depreciation
730,903
53,987
20,467
303,143
1,108,500
17,644
1,126,144
Net Working Capital
3,823,8%
37,174
768,613
1,178,878
3,810,363
21,626
3,832,189
Total Assets
19,835,012
8,472,243
833,610
139,471,490
168,634,333
8,533,395
177,169,930
Bonds Payable
From Operating
Revenues - Net
5,020,000
9,013,423
45,877,470
39,912,893
4,947,400
64,860,293
Total Equity
(Deficit)
9,077,766
(690,583)
732,148
83,332,742
94,492,073
3,533,349
98,027,422
Current Year
Increase in
Contributions
297
7,033,610
7,033,907
-
7,033,907
54
Indian River County, Florida
NOTES TO FINANCIAL. STATEMENT Continued
Year Ended September 30,1995
NOTE 13 - OPERATING LEASES
The County has entered into noncancelable operating leases, both as lessor and lessee. Lease terms vary
from 2 to 30 years. Lease revenues totaled $82,431 and lease expenditures totaled $93,449 for the year
ended September 30, 1995. The County also leases other equipment and office facilities as both lessor
and lessee on a month-to-month basis.
A. Future Minimum Lease Receipts
The following is a schedule by years of minimum future rentals to be received on noncancelable
operating leases for office space as of September 30:
Year Ending September 30,
1996
$ 52,927
1997
51,127
1998
51,128
1999
51,128
2000
45,000
Remaining
405.000
Total future minimum lease receipts 565
The property being leased is included in the County's General Fixed Asset Account Group and has a
carrying value of $834,273.
B. Future Minimum Lease Payments
The following is a schedule by years of minimum future rentals to be paid by the County for
noncancelable operating leases for office space as of September 30:
Year Ending September 30,
1996
$ 88,827
1997
59,952
1998
57,327
1999
19,248
2000
17,681
Remaining
Total future minimum lease payments
55
Indian River County, Florida
NOTES TO FINANCIAL STATEMENT ontinued
Year Ended September 30, 1995
NOTE 14 - FUND EQUITY
A. Reserved Retained Earnings
The County has established certain reserves for restricted assets of the Enterprise Funds. These assets
are restricted by various covenants within the revenue bond issues, as described in Note 8.
Reserved retained earnings at September 30, 1995, consist of the following:
Primary Govemment Component
Solid Waste Water TOW llDit Total
Disposal Golf and Sewer Primary Housing Reporting
DjifllGt C= System Govemment pori Eab
Reserved for
debt service S 297,417 S 22,500 $ 273,183 S 593,100 S 14,167 S 607,267
Reserved for
renewal and
replacement 1,718,113 366,786 1,053,794 3,138,693 170,077 3,308,770
Reserved for
insunna and
Proper tax - 45,551 45,551
Reserved for
TOW Capital projects 311792 319-79 311,792
e„ =0 f 1326.977 i9,4= Sii= W=
80
B. Changes in Proprietary Fund Contributions
The following is a summary of changes in Proprietary Fund contributions by Fund:
56
Primary Govemment
Component
Reporting
Fntewrise
Flnd_a Internal Service
Funda
Ila
En%lli
Solid
Waste
Water
Total
Total
DispOW Golf
County and Sewer Fleet
Self Primary
Housing
Reporting
DIIIEW Seurat
9gildina Stumm 1!t•olgc=
lnsuuora Government
Authority
Ewiu
Contributions at
October 1. 1994
5621,909 5423,513
$12,181 $64,699,688 5628,220
59,422 566,394,933
53,576,111
S69,971,044
Mama in
watributlons
297
- 7,033,610
- 7,033,907
7,033,907
Dq=iation on
contributed
sums
�'��
(2915-7311
(11111120
1111.1441
(2,225-619
Ccaributim at
September 30,
1995
Muk Mug
ELM JudlT.ir>!s i62i,22Q
is lii ii1.113.4iQ
i3.ltilr3li
VL=
56
Indian River County, Florida
NOTES TO FNANC AL STATE NTS - Continued
Year Ended September 30,1995
NOTE 14 - FUND EQUITY - Continued
C. Reserved Fund Balances
The County has established certain reserves within the fund equity section of the governmental funds.
Reserved fund balances at September 30, 1995, consist of the following:
General Fund:
Reserved for Emergency Management $25,483
Reserved for Pollution Control 25.500
Debt Service Funds:
Reserved for Debt Service:
Refunding and Improvement Bonds $1,639,148
Land Acquisition Bonds 485
LWUQ
These reserves are the Fund balances that are restricted to debt service requirements of the bonds.
Capital Projects Fund:
Reserved for Capital Projects:
Indian River Boulevard North $1,470,260
Optional Sales Tax 2,697,483
Gifford Road Construction 1.096,838
Wl
These reserves are the Fund balances that are restricted to specific capital projects.
NOTE 15 - FUND EQUITY DEFICIT
The following funds had deficits in retained earnings at September 30,1995:
ELnd Deficit
Enterprise Fund:
Golf Course $1,114,096
Internal Service Fund:
Fleet Management $385,942
The retained earnings deficit in the Golf Course Enterprise Fund will be eliminated by anticipated
operating income in future periods. The deficit at September 30, 1994 was $1,215,935 representing a
decrease in the deficit of $101,839 at September 30, 1995.
57
Indian River County, Florida
NOTES TO FINANCIAL STATFMFNTS Continued
Year Ended September 30, 1995
NOTE 15 - FUND EQUITY DEFICIT - Continued
The retained earnings deficit in the Fleet Management Internal Service Fund will be eliminated by
anticipated operating income in future periods. The deficit at September 30, 1994 was $439,096
representing a decrease in the deficit of $53,514 at September 30, 1995.
NOTE 16 - RISK MANAGEMENT
The County is exposed to various risks of loss related to torts, theft of, damage to and destruction of
assets, errors or omissions, injuries to employees, and natural disasters. During a previous fiscal year,
the County established a fund to account for risk management called the Self Insurance Fund (an internal
service fund). The risk management program began on November 1, 1998, and has provided coverage
for the County as follows:
The County purchases commercial insurance for claims in excess of coverage provided by the Fund and
for all other risks of loss.
All departments of the County participate in the program. Payments are made by various funds to the
Self Insurance Fund based on past experience and actuarial estimates of the amounts needed to pay
current year claims. The claims liability of $1,406,000 reported in the Fund at September 30, 1995, is
based on the requirements of generally accepted governmental accounting standards, which require that
a liability for claims be reported if information prior to the issuance of the financial statements indicates
that it is probable that a liability has been incurred at the date of the financial statements, and the amount
of the loss can be reasonably estimated. Estimates for claims incurred but not reported are actuarially
determined and recorded. Changes in the fund's claims liability amount during the current and prior
fiscal years are as follows:
58
As of
11/1198
10/1/89-
10/1/92-
10/1/94
10/1/94-
Workers Compensation
$ 100,000
_1111/82
$200,000
$ 150,000
Present
$ 150,000
General Liability
100,000
500,000
200,000
200,000
Auto Liability
100,000
500,000
100,000
100,000
Property Damage
100,000
10,000
500-25,000
500.25,000
Errors or Omissions
25,000
25,000
200,000
200,000
Annual Aggregate
600,000
1,000,000
11000,000
1,000,000
The County purchases commercial insurance for claims in excess of coverage provided by the Fund and
for all other risks of loss.
All departments of the County participate in the program. Payments are made by various funds to the
Self Insurance Fund based on past experience and actuarial estimates of the amounts needed to pay
current year claims. The claims liability of $1,406,000 reported in the Fund at September 30, 1995, is
based on the requirements of generally accepted governmental accounting standards, which require that
a liability for claims be reported if information prior to the issuance of the financial statements indicates
that it is probable that a liability has been incurred at the date of the financial statements, and the amount
of the loss can be reasonably estimated. Estimates for claims incurred but not reported are actuarially
determined and recorded. Changes in the fund's claims liability amount during the current and prior
fiscal years are as follows:
58
Indian River County, Florida
NOTES TO FINANCIAL STA Ili NTR - Continued
Year Ended September 30, 1995
NOTE 16 - RISK MANAGEMENT - Continued
Current Year
Included in the charges to other funds is an amount to fund future catastrophic losses and at September
30,1995, the retained earnings balance of $ 2,785,114 has been designated for this purpose. The County
has elected to accrue the larger of the discounted liability or undiscounted liability. At September 30,
1995, the undiscounted liability was the greater of the two amounts. The discount rate used in the
calculation was four percent.
NOTE 17 - COMMITMENTS AND CONTINGENCIES
A. Litigation
The County is contingently liable with respect to lawsuits and other claims incidental to the ordinary
course of its operations. In the opinion of management and based on the advice of legal counsel, the
ultimate disposition of lawsuits will not have a material adverse effect on the financial position of the
Country.
B. Construction Commitments
The County has various construction contracts outstanding at September 30, 1995. In the General Fund,
Projects are for various parks and recreation improvements. In the Special Revenue Funds, projects are
for the Prefabricated Erosion Prevention Reef, and various road and drainage improvements. In the
Capital Projects Funds, projects are for Indian River Boulevard North, an additional fire station and
other road construction. In the Enterprise Funds, the landfill expansion, golf course improvements and
various water and sewer projects are under construction. A summary of these projects at September 30,
1995, is as follows:
59
Balance at
Claims
Balance
Fiscal Year
Beginning
and Changes
in c
Claim
PamentS
at Fiscal
Year Find
1988-1989
$ -
.ctimat
$504,167
$(88,917)
$415,250
1989-1990
415,250
866,250
(167,553)
1,113,947
1990-1991
1,113,947
1,144,583
(188,081)
2,070,449
1991-1992
2,070,449
(426,841)
(425,351)
1,218,257
1992-1993
1,218,257
529,720
(531,187)
1,216,790
1993-1994
1,216,790
648,498
(559,600)
1,305,688
1994-1995
1,305,688
721,789
(621,477)
1,406,000
Included in the charges to other funds is an amount to fund future catastrophic losses and at September
30,1995, the retained earnings balance of $ 2,785,114 has been designated for this purpose. The County
has elected to accrue the larger of the discounted liability or undiscounted liability. At September 30,
1995, the undiscounted liability was the greater of the two amounts. The discount rate used in the
calculation was four percent.
NOTE 17 - COMMITMENTS AND CONTINGENCIES
A. Litigation
The County is contingently liable with respect to lawsuits and other claims incidental to the ordinary
course of its operations. In the opinion of management and based on the advice of legal counsel, the
ultimate disposition of lawsuits will not have a material adverse effect on the financial position of the
Country.
B. Construction Commitments
The County has various construction contracts outstanding at September 30, 1995. In the General Fund,
Projects are for various parks and recreation improvements. In the Special Revenue Funds, projects are
for the Prefabricated Erosion Prevention Reef, and various road and drainage improvements. In the
Capital Projects Funds, projects are for Indian River Boulevard North, an additional fire station and
other road construction. In the Enterprise Funds, the landfill expansion, golf course improvements and
various water and sewer projects are under construction. A summary of these projects at September 30,
1995, is as follows:
59
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30, 1995
NOTE 17 - COMMITMENTS AND CONTINGENCIES - Continued
Special Capital
General Revenue PcgisstS Bntelprise Total
Total contract price $35,450 $4,402,537 $12,512,162 $25,819,938 542,770,087
Total paid as of
September 30, 1995 30.989 1.027.463 12.310.610 14,970.568 28.339.630
Remaining Commitments at
September 30,1995 UAU S3.3� 510.849,370 S 14=
C. Grants
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies. If any expenditures are disallowed as a result of these audits, the claims for reimbursement to
the grantor agency would become a liability of the County. In the opinion of management, any such
adjustments would not be significant.
D. Gifford Landfill
The Gifford Landfill, which has been closed since 1978, is being monitored by the Florida Department
of Environmental Protection (FDEP) and the County. A hydrogeologic study showed groundwater
contamination has occurred. A groundwater monitoring program, which will include the use of 12
groundwater monitoring wells, has been developed and has been authorized by FDEP. Implementation
of the study is estimated to cost $80,000 in fiscal year 1996 for the installation of the wells, groundwater
monitoring and analytical testing.
NOTE 18 -SUBSEQUENT EVENTS
A. On November 7, 1995, the Solid Waste Disposal District approved the purchase of three parcels of
land totaling 113.51 acres north of the existing landfill site. The closings took place on January 5, 1996,
and January 8, 1996, and the total amount of the acquisition was approximately $3.1 million. The
District plans to use this additional land for waste disposal purposes and to establish an industrial park
for the promotion and support of waste recycling industries.
B. In January 1996, the Solid Waste Disposal District filed a permit application with the Florida
Department of Environmental Protection to construct an infill segment to the current landfill, which
would significantly increase the capacity of the landfill. The District's engineers are unsure of the
likelihood of approval of the application.
60
Indian River County, Florida
NOTES TO FINANCIAL STATEMENTS - Continued
Year Ended September 30,1995
NOTE 18 - SUBSEQUENT EVENTS - Continued
C. Management is working on a bond issue to finance several water and sewer construction projects.
The approximate amount of this intended bond issue is $45 million. It is expected that this issue will
occur during the 1995-1996 fiscal year.
ENTERPRISE FUNDS
Solid Waste Disposal District - To account for the revenues, expenses, assets and liabilities
associated with the County landfill.
Golf Course - To account for the revenues, expenses, assets and liabilities
associated with the Golf Course.
County Building - To account for the revenues, expenses, assets and liabilities
associated with the building permit and inspection program.
Water and Sewer System - To account for the revenues, expenses, assets and liabilities
associated with the County water and sewer system.
62
ASSETS
Oarr ent Assets
Cuh and cash equivalents
Investments
Accounts receivable - net
Due from other funds
Due from other governments
Interest receivable
Inventories
Total current assets
Restricted Assets
C sh and cash equivalents
Investments
Impact fees receivable
Special assessments receivable
Total restricted assets
Property, Plant and Equipment
Less: Accumulated depreciation
Total property, plant and equipment
Other Assets
Liens receivable
Ununortized bond costs
Intangible assets
Deposits
Total other assets
Total Assets
Indian River County, Florida
COMB NING BALANrF RHEFT
ALL .N a ICF Elnape
September 30, 1995
Solid Waste
Disposal Golf
District Count
S 2,466,294 S
29,215
1,246,023
.
126,515
1,522
82,499
77,277
28,139
3,783
-
71.682
4,026,747
106,202
509,942
8,604,098 536,770
8,604,098 1,046,712
14,341,515 8,069,535
7,367,133 _ 901,135
6,974,382 7,168,400
71,921 149,929
157,864
-- 1,000
229,785 150,929
S t4 OMAJ2_ $ _&422.243
The accompanying notes are an integral part of the financial statements.
63
u
Water
County and Sewer
Building System Totab
$ 800,781 S
3,323,816
$ 6,620,106
-
-
1,246,023
-
1,259,122
1,387,159
-
1,872
84,371
-
60,940
138,217
-
-
31,922
410,547
482,229
800,781
5,056,297
9,990,027
23,720
3,666,128
4,199,790
-
3,139,285
12,280,153
-
3,685,400
3,685,400
2,968,640
2,868,640
23,720
13,359,453
23,033,983
194,927
144,108,865
166,714,842
163,818
24,344,9-9
32,777,045
31,109
119,763,906
133,937,797
634,844 634,844
491,990 713,840
165,000 322,864
1,000
1,291,834 1,672,548
S 855.610 $ 139.471,49 S 16_$,64, a
Continued
64
Indian River County, Florida
CO KININ ■ B IANC . MEET. Continued
ALL ENTERPRISE FUNDS
September 30, 1995
Long -Term Liabilities
Accrued compensated absences
Solid Waste
37,039
Bonds payable - net of unamortized discount
Disposal
Golf
LIABILITIES AND FUND EQUITY
District
Course
Total Liabilities
Current Liabilities (Payable from Current Assets)
__ 9,162
Reserved for capital projects
Accounts payable
$ 200,851 $
66,127
Due to other governments
-
2,261
Deferred revenues
(1,114&%
640
Due to other funds
(690,583)
Total Liabilities and Fund Equity_$,472,243
Total current liabilities (payable from current assets)
200,851
69,028
Current Liabilities (Payable from Restricted Assets)
Accounts payable
-
-
Retainage payable
-
3,593
(current payable (cunt portion)
580,000
280,000
Closure and maintenance costs payable
5,292,440
-
Customer deposits
34,264
-
Accrued interest payable
119,072
37,743
Total current liabilities (payable from restricted assets)
6,025,776
321,336
Long -Term Liabilities
Accrued compensated absences
90,619
37,039
Bonds payable - net of unamortized discount
4,440,0008,735,423
Total long -team liabilities
4,530,619_
8,772,462
Total Liabilities
10,757,246
__ 9,162
Fund Equity (Delleit)
Contributions
524,124
423,513
Retained Earnings (deficit):
Reserved for debt service
297,417
22,500
Reserved for renewal and replacement
1,718,113
366,786
Reserved for capital projects
318,792
Unreserved (deficit)
6,219,320
_ (1,503,382)
Total retained earnings(deficit)
_ 8,553,642
(1,114&%
Total Fund Equity (deficit)
_ _9,071,766
(690,583)
Total Liabilities and Fund Equity_$,472,243
The accompanying notes are an integral part of the financial statements.
65
S 855,610 $ 139,471,490_ $ 168.634.355
M
Water
County
and Sewer
Bulwing
System
Totals
S 32,058 S
375,377
$ 674,413
108
2,042
4,411
-
-
640
3,500,000
3,500,000
32,166
3,877,419
4,179,464
-
1,962,372
1,962,372
-
976,278
979,871
-
1,165,000
2,025,000
-
-
5,292,440
23,720
1,057,392
1,115,376
207,578
364,393
' 23,720
5,368,620
11,739,452
47,576
160,239
335,473
44,712,470
57,887,893
47,576
44,872,709
58,223,366
103,462
54,118,748
74,142,282
12,181
69,717,560
70,677,378
-
273,183
593,100
-
1,053,794
3,138,693
-
-
318,792
739,%7
14,308,205
19,764,110
739,967
15,635,182
23,814,695
752,148
85x352,742
94,492,073
S 855,610 $ 139,471,490_ $ 168.634.355
M
Indian River County, Florida
COMBINING STATEMENT OF REVENUFS, EXP NS S
AND CHANGES IN RETA D ARNIN UDEF=
ALL ENTERPRISE RINDS
For the Year Ended September 30, 1995
NONOPERATING REVENUES (EXPENSES)
Interest income
Solid Waste
77,001
Operating grants
Disposal
Golf
Gain on disposal of equipment
_ District
Course
OPERATING REVENUES
(380,832)
(461,332)
Charges for services
$ 8,070,761
$ 2,665,201
Total operating revenues
8,070,781
2,665,201
OPERATING EXPENSES
Personal services
1,875,501
1,111,792
Materials, supplies, services and other operating
3,426,477
813,523
Depreciation
1,497,543
230,336
Total operating expenses
6,799,521
2,155,651
101,839
Operating Income
1,271,260
509.550
NONOPERATING REVENUES (EXPENSES)
Interest income
579,747
77,001
Operating grants
262,395
-
Gain on disposal of equipment
21,397
500
Interest expense
(380,832)
(461,332)
Bond amortization expense
(23,116)
(23,880)
Intangible amortization expense
(9,867)
_
Loss on disposal of equipment
Total non-operating revenues (expenses)
449,724
(407,711)
Net Income
1,720,984
101,839
Add: Depreciation on contributed assets
98,082
Net Increase in Retained Earnings
1,819,066
101,839
Retained Earnings (Deficit) at Beginning of Year
_ _61734,576
__1,215,935)
Retained Earnings (Deficit) at End of Year
S.—t-53.¢42
S__ -- --0-1 Wft
The accompanying notes are an integral pan of the financial statements.
67
Water
County And Sewer
Building System Totsis
S 984,398 $ 13,502,262 S _ 25,222,642
984,398 13,502,262 25,222,642
647,847
3,866,262
7,501,402
136,687
2,880,909
7,257,596
— 21,940
4,696,058
6,445,877
806,474
11,443,229
21,204,875
177,924
2,059,033
4,017,767
—
37,253
1,741,677
2,435,678
-
4,561
266,956
4,387
-
26,284
-
(1,544,650)
(2,386,814)
-
(75,427)
(122,423)
-
(15,000)
(24,867)
(1,000)
(1,000)
41,640
110,161
193,814
219,564
2,169,194
4,211,581
2,015,738
2,113,820
219,564
4,184,932
6,325,401
520,403
11,450,250
17,489,294
S 739,967
$ _ 15,635.182
_ 23.814,695
68
Indian River County, Florida
COMBINING STATEMENT OF CASH El DW
ALL EN77ERPRIRP FCINnq
For the Year Ended September 30, 1995
CASH FLOWS FROM CAPITAL AND RELATED
Solid Waste
FINANCING ACTIVITIES
Disposal
Golf
Principal paid on long -tern debt
District
Course
CASH FLOWS FROM OPERATING ACTIVITIES
(392,640)
(462,097)
Cash received from customers
$ 8,097,215
$ 2,662,352
Cash paid to suppliers for goods and services
(2,286,730)
(836,249)
Cash paid to employees for services
-A1 873 97)
(1,107,416)
Net Cash Provided by Operating Activities
3,936.515_
718,687
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
297
_
Operating grants
262,395
(823,134
Net Cash Provided by Noncapital Financing Activities
262,395
509,942
--339-M
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
(10,791,002)
-
Principal paid on long -tern debt
(545,000)
(270,000)
Interest paid on long-term debt
(392,640)
(462,097)
Proceeds from sale of fused assets
45,491
500
Purchase of fated assets
Bond paying agent fees
(1,387,908)
(89,539)
Bond issuance costs
(2,473)
(1,071)
(927)
(1,071)
Proceed from advances from other funds
S-2-40,294 S
532,157
Capital contributed by others
297
_
Net Cash Used in Capital and Related Financing Activities
(2,283,304)
(823,134
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities
(10,791,002)
-
Proceeds from sale and maturities of investment securities
10,224,348
243,722
Interest and dividends on investments
520,945__
81,692
Net Cash Provided by (Used in) Investing Activities
(45,709
325,414
Net Increase in Cash and Cash Equivalents
1,869,897
220,967
Cash and Cash Equivalents at Beginning of Year
_ 596,397_318
190
Cash and Cash Equivalents at End of Year
S-2-40,294 S
532,157
Classified As;
Current assets
Restricted assets
$ 2,466,294 S
29,215
Totals
S 2,466.294 S
509,942
--339-M
The accompanying notes are an integral part of the fmancial statements.
69
Water
County and Sewer
Building System Totals
S 976,898 S 13,427,451 $ 25,163,916
(142,511) (3,034,342) (6,299,832)
(642,200) (3,860 057) __ (7,483,643)
192,187 6,533,052 11,380,441
_ 1,654 264,049
1,654 264,049
- (1,145,000)
(1,960,000)
- (2,530,290)
(3,385,027)
5,046
51,037
(26,127) (21,297,687)
(22,801,261)
- (2,245)
(5,645)
- (6,108)
(8,250)
3,500,000
3,500,000
- 5.361,112
5,361,409
(21,081) (16,120,218) (19,247,737)
-
(1,940,471)
(12,731,473)
-
11,554,000
22,022,070
_ 37,253
_ 1,775,179
2,415,069
37,253
11,3 88,708
11,705,666
208,359
1,803,196
4,102,419
616,142
5,186,748
6,717,477
S __ 824,501 S __
6,989.944 S 10,$19.896
S 800,781 S
3,323,816 $
6,620,106
23,720
3,666,128
4,199,790
$ 824,501 $ 6.989.944 $ 10,819.896
Continued
70
Indian River County, Florida
COMLHMING STATEMENT OF s SH F 0�'�gS4IIL1IIYed
ALL ENTRRPRISR f1M
For the Year Ended September 30, 1995
Solid Waste
Disposal Golf
District Course
RECONCILIATION OF NET OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
Operating Income S. 1,271,260 $ 509,550
Adjustments to Reconcile Operating Income
to Net Cash Provided by Operating Activities:
Depreciation
Allowance for doubtful accounts
1,497,543
230,336
(Increase) Decrease in assets:
-
Accounts receivable
(27,279)
Due from other funds
(28,818)
Due from other govemments
82,467
Inventories
-
2,715
Liens receivable
Increase (Decrease) in liabilities
-
_
Accounts payable
19,267
(26,000)
Due to other governments
-
559
Customer deposits
64
_
Other deposits in escrow
Closure and maintenance costs payable
1120,480
_
Deferred revenues
-
(1,667)
Accrued compensated absences
1,531
4,376
Total Adjustments
_ 2 665,255
_ _209,137
Net Cash Provided by Operating Activities $ _ 3.936,51 S $ _718.687
NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
Contributed property, plant and equipment S $
The accompanying notes are an integral part of the financial statements.
71
Water
County and Sewer
Buiidina System Totab
$ 177.924 $ 2,059,033 $ 4,017,767
21,940
4,696,058
6,445,877
•
(31,783)
(31,783)
-
(194,855)
(223,316)
-
84,694
55,876
•
82,467
-
(16,227)
(13,512)
-
(141,804)
(141,804)
(5,586)
(105,827)
(118,146)
(238)
404
725
-
177,154
177,218
(7,500)
-
(7,500)
-
-
1,120,480
"
(1,667)
5,647
6,205
17,759
14.263 4,474,019 7,362 674
S — 192187
$ 6.533 45� S 11.380441
S - S 1,811.618 S 1,811.618
72
APPENDIX C
MASTER BOND RESOLU77ON
t>tY ISM now. !Mali
0210LMN N. N.N
A RUSLIM M AOI1wttM11 TA 1 TMO N MINIM
ownupotN rfti AN MR UVIPVM mu N Sale COATI
AN CMU90 IFI CIAL ASIUMM LV W0 MIM 0► TO
CwArft: AVNIU IN CMTAII 11808M M TN CWJMH:
AfIwItM tot I9Mk M1 N 1101 In 667.1".000
"771 An sm sNwt MAI, IO7u MA. AN TN
UNIM OF N, W=StN 11.710.6" r VAIM M San
spall 40101. $111111 LAN. M 1Ml C0Mn7 IN M"14
flaw MO YM ORtYMR/ AN H MIN= =Law CNH
to OOMKTIM IsmCMTIN Imam of TIM COWTV:
N M
FOUPTI lea T um N SM artl(fr •along or
MU III": 108110 cow OWnw" M hw4wH It
0019=M 7rOR71: An INaMiN Y arkenvLAIH.
K H sONNM ST M w M mm ort7esw or into Rim MM.
ptom:
I1Cttls 1. AOINOM 100 UWJM M. This 1."INIM a "".ad Nr1N1ol
" OIpus I". !Meme Itopla" rn awn poptlwta N.q.lw at ler
IMM O. 111=2111. ria Nlta.lat Nor suit taw in lotteries
eNNys N tlN umtellw• Mow ON s.elrs &Noggin Itao17 "alu";
A. •re• roll M Salter tn. Funds IYaew. w asks slpllessle
WO.ULM 49 LM.
a. •Aefw
ltll hall? km"- Wall own *MetwI boost Issued IN
e,+tlrN tea w SO Ml, *="UM w t WYaIMo aal40= MISS.evow
laA t
n saml 1t" w as fished tots. M bo"N..f/W. no law "Nally la Nl
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7.7Mwt.
C•'AMr4,{A.a television, Mau c am lw.aMr11Y NMlfled I.
tWA1►Ia A aw"n ase" w mea .ewf Itloor.o,s M w ararlred by Mas
MrW lN7 Stabtow". of.,d ow* Wen I.aIMSMl, en ba w it. I -C.1
lawWMw.s6 fib ass Carol Liberian Irene W ler .f w sun at Mists.
leMelNMy Nast iia{aa a
sort- t1L.7t. nater states.,. TM to.
Rater• N Ler, (esm117 M IaA1Ne t Owl M IN Coaly.
y. N
t. 'Mssrd' all bows w bass" of COMCOMMC1MYllwra of room Alwr
1. •Nay Nell been w Neal 1901 NWS N1•wt with .er AYItINYI
I., NMA 1001498e4? law" horalaMf.
f. •Iter er/NtrW atll ow Ntl n.tNr e. ia7 NralNNr NrN of
Hoer ltd b sub"" as. Ino NWrr N, alas 4,,W .f /aaai " N
Yetr{W y olAse7e.n rSnlwlr s1, to Ask.
F. •Na Nao.orl• 0011 Mw w AI.a610 ler. oaeratin lelrN1
Q. •0118
nitM U@"". coal,
MM w MHw "gin" MN it "bow,
ter r .1"9"rlseMa.M aft nNlf of nil MllltNa /a61t1"e W a part
Ns
.f rat $yo. 61, do"8 M awraira ntl pe.erell7 MANN/ N9Mi/es
MWY. W salt Lawson, attoor tWaW Mep mr&LL47 of its f4,al.sy,
IWNre Mellon. awlwov"t" a+Nwee.1 w Co." totaled "Loll N w
'roar, eel, .f labor. rarrtaY w Notts" Nen (.r was "Cast. an
tboflN 966 ala NcweaYtlw at rww."L&u n * for Naar. a"- No.
anotNy lNefrw baa Nor all ae.h Y 667 rlataanll N e.Pa.aal ti N
lrwfn to N rrr..lr mea wsptn aNrNatW 61laede, Nt all z.
N7mNt toss "h
'oly f"a N 0, anew real, secret. a" bay eltcaaaa..
1.9 aMlratteat" or for now" N foflerrrNs sal aM/N1 "rat of w $roan.
A. -felt" low *ALL one, Nw Comes N "y ►PaSY.I.r "fie. at
Nllal kiwi honer! as:: perl.M .pot let said Net- at Inde, Y N a1N.4."
OF calatlere console" at 0%" 61 so
S. •ploy! his• .All saws w Ors Samoan. t.pewr via ala/ oat
toNlpel, "-see MA far P~ N 9 ELM ata w bolos
t. •IaM4, Mat• all r- w tlfai«a (&7a) cry at w Mesa
use"Wes, ofawaW r IceeMs or least a09ltorU "Lacs rat tar as Ina,.
W. •ANNMfM MN•. •Melon!' N M .Alta N" all NM 4,q
lout IN C L� wsiwwi y this ts- �NNr N Nra « «r « w
I.
.' wet '""IMLs -m 1,W woolnue, Y selene. W rNMlwaa«
t. It" N SLM.
V- 'seen" ANaM 1ewlsonew• "ell w w INN! of (l) w
.,. Mt of 1rlwssNi w 'malt n Yl ""an atM l.eldi l••mles are
u M ..oOY ri"&L ria: r til) Hso n1, w baaalgl .oral atnlat 1f
".611001 W iMNM. a Yt a.salc.tly Ott" Naw" .1,n u bels/ ►owl
Toon.
1. '11141014 {MSA• salt re Me whoessilaq Soft" it" lens. the
teMtNfsel/ Nrw Later sosdo. w oritaaNy NrW 1111 ail. w
IISveMNs. t06 witftSn ltlast Iekg olw L9111L9111.rs.IlN1101181y AIMarlitM nWON.Ots. rnNtowt
1. 'Mprswsu• .til rib IL) w WASM Mott: (7) w says" late
I MW Ammusu s l#a@ww: (1) w after 1116 smug AI/ g somans: (e)
Med lortso 1191 manowll 177 an frim 1661 Snat.t aaN Stator: (I)
=466 M w MMIMM N w be"" 1097 MI talnse, sus /erleaflrs, 'Mot
Is... Ilttlal rasooMt.N, reriYm fa/o all fw I. LIN of ►raWIN tela N
to IIIIe, h atwolwsw, err es6l/a•m w Irnaro: Ar (7) Nrlere N w
Nart of w fall ITN owl LrrMo. wsr sow M«INa me few~ at as
cam" be w bond. y gasal.aln.. sq W/sew M ae. m . •91.orr - all
we !.•tabs, a..ppu. "a orrsom a" toed " N. fm IW N sun. a" N
"1rNd 1,M as tNMb NCA" ,/all.- «Nmlfar by lattice to larval
t. no"" lass ASN• Nail ago as trots Star Caesly, no. 6. Noss,
we Is.r N.ssasa looes. NON. M. rear M of aooaMar 70, 1111. 1. the
0. •Cw• wti MM w 11YnW Italian Cw at left. N e a m. W
tat MNll.r N.Iaeoret f=. fames. Uw. Aly Ht0-a /a a Nnl"tar
1NNM. petaallM. eft., of w CW SMll MLN cf.S. o Me s"sYr Wtt".
sn9oenM, ase.. /f a" crlYr WA""Ma (anal to . INW.
M.es •Catwlltal IMLA"Cd' MALL ,eta two !lento's sea no plied
,it,
aoµo"
ao.". ma" a "tloea"e Add !..Nelle New Itfor "til w
•.Nrlwe N w NMtrudelY WA 09StstW .f e791M/ mel N as ynme, at
Zel lel ousel by w C..w to MHaer w -as w osfly .Na w rely N
NN prNtw ter as Callerlelsg lylwn.
1. 'C"l,' alit Wn est "per" a .mals, ~U"M 4, L-16 wt
taw NalatnM os awewttn H toy of a am. fall. Nrtwl .. Nw,
a..w lease 17 at O.Olrebl0 fer YNtty Ma w Nlyow 11 w /fern.
if INdi 11,, claw, NWwIM Y "T a ps. "'s, at w N"Noel. w NN
-f «t lel 19 Lt.n,e toes!." 1, .( my (bs.rao, equpmm at "t6wt
"eNrly wNa-11 ala s.al.olM w"Nr; .ater of NwMlf"p My "lot at "a"
•Nem at .mer trlpirly 11 ►lata, of aft I M,," lessons meet,. N/M ala
N everaan M Part •I w slime a ala say be rrtedn y toaclNlM of ass
Nene sI n "re 1f w aNme: M1ta«rW. Lt
Y{ w (nowt" a.parNs:
..Nasse to NoIinN. of iNl, W of r. -S.; UPI Nr 9sseaN: aft talo
le 11 46L lost/. flaNls10l 6WL"7I ser eelwllrll; ad.ULS%raalw Stowe.
"Ott" solely ss fob "41,191,1" .r ewtrwlW: be .ytYllNat- at
sciencefat • f""Mbis "tied slur Lath.. of lona U (law. tat
Nn IM .I w Costs at Naw aosNUL w ..
N alrawtlr: w am"- w
NwWitter .1 nnaWasl. rwnie to,
Sae ser".. w ."fee&" w
rYtN.r.; w a/rrrev, - to alit of Nw Y flaw" ely N"W at w
Co..' of colas artYN1W ala s.narevtlM; w s -0 are NON w neacss. e9
•a7 be WNNNly a1 tot&-& Y 11.1 se "e10tat .r .wows{".
J. •CNnr7• wet amen &"I= Aar Ccelar. ruf1.1.
1.
W prinlNworeat"«ras".... mises'wat. n MtlWtNa
-1446
are lalor"1w117 fwfM"N by. w
wlW crew at merles, Mw eft 61, feaawnta a
/fr N raNlt7 N too
Mct. of W allot.
L. •/w to it" et R1.esW ►w• Nell bow w feat Nla y w
tlltoles MfNtw 6.oaterate 1f w CrlaWt Y w C.Irer M .w1nf..W
.M of plat .ANY w r/Otu•1t•ay tato C1.r7 w " caller floss
w1t"s tow "ra stn y w Cswef ed w NfNW aY 1"LISMe of w
Yetilly N7ao" I.perMwM of me Crl-y.
t. •nnol Taw .alt Mata 1,r Nrtab N/la61M Nth w 161ledlq
botselr tell of ser 7.66 "••AAM as w LrtraW4 w sus'"twr N.
NaItYW, oaf ass CM MllLt7l Neal" nna.4 of w Corq,sout d. feet "go by "Nor Nt at
C.evq
is tw".oastlt for w Nat H pots 6""" w ftMto•fFMy atib
Wes w N catro7 real, Whole to 1,Y "gelatin by ae Coo," of a
Nfwcal w 16111141" of aorl 41111ain.
r'Ia1.mN 1f lib t toes. al'Alt ss tr«tY I. ,e fel or aft" Le""4 .a- NON
W MN W "ewe d oil .r • N"s- .I
retaYls of Wtlltr. Ntwl1"a W met.a.Palto cow s7o9"
MW oataleAry 0y w WIn18 of a.I► as lmaa"N.
Nl7Wt sIP=. pflallpal reaast of 11.1@0.000. Urate 4,."t IaeltaslM Ne.
11•Is Is.,
9" NwC7. N r.Asod W "Nlreneoa.
M. •,AIN 111" 4,040 w "t• WALL rInt" AIN{ Cwry, noel
N.Nf w Near daa.ler /tali. NEIN 1,71". Yen Y at aNtror 1,O. 1111. M
w 4,L&LUI =46 tflr19el rime .f N".000. I.- later StNIeaW N
WJ/ .t w CN,le7• N .roast no wNlanaW.
11 •14,100 t7N o -1s• all lar w train alwf Nay nee W Wear
.ed {leaf A- NfwWM 1w". NrIN IAO. Yw N .f lest, 17. less to
1,MN•ll aVIA"i ."ga"ea /finite& far! et 16. M'4441.M'4441.uwwN
, ad sor Nlwln
oe .f w Carter, r r/crs w lerolorrte,.
CC. •s"I'S Lt" 'Postal "Meat Worts' .all stat W Intel Ilea,
Cowry. /Lester ,".III rMwsne Moor. INer. color 1166, letas N .(
O.NYr 11. 1111, N'. on9lw wtWl row .9 N.071.ON. Imllsa w or
NNYtW N. 11.66 at w early. Y ewYd MO aeN{orNN.
M. •Nn.1 tfM Ip«Ul Aaatotsre 1..61' all ra w Wtn At r
C•••rr, Mold. apNUl Yoa9wat 4•.ear tsW, NEIN 1710. ease al 11, Jaw
1. 1766. 1N w OTSAMl trlMlNl raa" .f 1776,000, labor, •S err i@NNINIM
Me N.n .t W C.Mly, No, alMN W reralo Senn.
ts. •Nn" tett Ara• all lar me tatW tlwr o••al7. none. Noss.
w &", boeaw Naw. 6NW 1Mt. YM N of aNNr 1. Int. 1. a
•r1IWl "sroMM arWi hewn a. 9.391.1 .. Usk, Irnt StNlat{M N.
07.11 1/ w Ceres. Y rrrtaM w eNapl�"WN.
fro •Anel 1011 )tots• poll on, to INW Arabs Yr. w w ,"t"
16671 Nw.
N. 'Sorel 166" Was., sell lar a. Int" Ismer Clever, Mr"o
v1aN w loese aoas.r 60t", $oft" term. Oatata eeaeruo, N be 1lalln
MNcelot.
IM"er
. •$.It" 114/6 s• sale w w trlr alert Color►, notice
Mk.", Ar Nnr spat* bow, Set&" ANN. Mall NItl4,Na4 Y M breva
NMYe.
It. •NSW 166) err tt111rWe.S filler' .batt w w aMrNIMI soca law
taw loawrat "lNy law, y w INW l"1 Mw I.ceaor Or"10.ot" a
pgMim N "W{psi .f w LaNrbas N w $""a 1"I NW.
J!. •sm{al 1667 bow {ollNat• asml ole nonew pre., tobarm.
0tl. 1Win,M7 bow/ Irerbr.7 y
fotl�M1A runs.tea, wuaft N LustN
n. •Anel 114l Mfrs• OWI sous w "ft. INI "Jest, " dotten
A, I.onWW 74. ft•6t a(w Nlrly, r -wed" ad oaNlasecoe..
LL. •NSW lN1 aM)Nn• ,Ail a.r (Col w -mmt- or w Naw►
C.l.e7lpNw Otwta meal itgMMt ata n pMmY MreameYlt l.1 still-
Nait10Yl Iallan for s.7: 667 w aarewt/w .f , 1
mem61IllM l/oc Nur
.4Ny Drs oft, ata Ior.loS ttrf IW W 4, w sora Ntlw Ao•v1eN 0wau
, Tralwt ►era: 667 w Wltl" n as Mw11M stores" Iterate esu.
(Q
as owerwtStas at No wase it MSN, No. )Atmel MINI: to eft
oesataaaala N IM fawn Ile V"w lace bedota{M Mflaag: Irl opo 4"4"tn of
fie Vm hgo" mosndint ?matter lime. r Irossel elPwtltt•y f million
Auuow sail" PN l@tl M (u w artNlla"M It M eltl•ea. ee.mallM
f.,ea adle bet" w tams w Gaah11 Male" " Ponder wlmiwl "sada""
fir&.
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k"Lo "t Yfauna. r mitt"" Y W46 14, M. 11•fa ft W Cwrm, r
.ebbed w al@IteMa«• oollatM y Ion .lam dear yr,l 1. tell.
Ago. ""W 10" sPgew eraa.lmSA ."tame• wll ease .0 aa...N.
N sassed" w awllaeawN.
M19Nrd y aM !"earl atm y,il 6 tN1.
fed •!.Geon lOSl Ywru• oW1 ear all dattoa w n.aMrg ""aided
It w tn&ef NASA w gPdaNue N IY i"w ttfl en Nr W SAM tares Iowa
W syelabMaM. r rllW r WUMIr fa. Ows, 11 0. !Many. Y rrrt
N. 'Owl" 1901 NMW a.esblmm bow . small SAM the rwt.l
aMosreaa glee
AN seR."mps I- by w Gomm le uarsat. stop W $.fees
IN1 aNJpsdo W tea {eMfN1, Pnesge*n "UPS W pule/" food"" y SAM
Camp n tetaMlet opMarltl.
a• 'Maw YMlrral@• abdli t." W foe. wrs.b .ed w"
eased,940N tart awrr~tyajlaYi wed
tt"IIrW y ewelwat. eat
of me= a1 a.tb tdir&rr"era w ami eery Am Sp"rai"n
r• •deeopaanN rant tie SIN" tent. foes w America tar .1.1
S, arms, unto Lmo"w ton a 11 "a time la pnPyo by *,,I. "MUG y
w Rana mea ce adm"m a Y mewl lmih,t wnr w tows unto taut.
toe• am tabun. N w owq.
ps• *111Y in- 041 dome w wont w .was rens woe w ".Net"
y w s'•ai9 r •t yell 1. 1197. IaNMbr Iflas.e a w "Corm Iwlset"
Mtlnt lYlglpsl" •M seal" toss IMJweI, "elan stop bay was all
leoenasara, a.MrlPY.a/ W/a{,r font O~uf Gori!"." of ""It"
eN r@ /toami4 a&Ii"tr saw N •Malt "fon e.te"ur SAY . ease at
IN .loon a7 wIMW of She taw rPeaw wa M w alt yecw.t.ea.
Nlami*t atm am- ante" IOr,at"t .weer." •r Malar". g,
taMaMy r liMa w P--usy at M fMa(al% Sato". •0.i"• Scott
nssa+mw,,o1Mbr. rube, Ibrfstal W "W. rill", own. IL*sOm,
off eq. Pnnlyaa. "MYew w all was comes, •r
l
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.0.420.. o""OPWUM W eoel00, ams N rete ,s ••comae rLm
committed" N woe woe a raw, mew y w
"m9•
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AS ase"" w mer daed Imp "lSa Mall be Ia3est " Subtler Coal ..nM. to
./Meal" of
as SMA a"taltµ{M rids".
foe �fIM Qae1N• "all ems alt rwrlPn am rrM". N wC"',C
I+estllea. NLl"aW w emifraww at .Ilam wa.. W
ion Msir t at ell of W ""9"4" "re.@ Ifs! Maps 1. sense,
ps
a•telMld. ion little Ill a-"4~06"fan •"L.
nos MAIL N r"Ifed
so res &"I O w flus N was I blue
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24M. lot Ibade "weal M ler estae ay I. she
Nall o rNIN N osy 1,
SMt, L widest go n raYwai Y", .t w Iasi of 1011 of W. Ply
gM1W {Mort M w fedl+{I" Yps.
Ireciter" •f oil of at."lt( oi r 1010 IIPaadl "WOme
MeThewedo
is my arwrlaps. "a .fess 1019 Siegel" aseediops it". w"leoeaft "
pa rl.t loon d W OatNN if 10N 1. N1 MAO "mew I. tots Wll be
aro letar"a M w tellwllwl7. et mea Peu. N Nr. mel.
t.rMmtI" Y". ton *tsar .rte, IN 10sal.l
A&SNON . UNGwl1 N nWe w ft~ I. toss, w rattiest walwl
rammsi Yr. at w plea at loll •1 Nb. Pi" swamd lM•H.t to W
reN11tW data.
me museum so all of w oell.ryly Mli fill //Niel Y"•taw
be" la hens •.wraps. Nile "SAW lips special taw.tMs bo.da twee"
bath Jr 1. ltN Mall M tater" w "oat" n w n," N !"ll.
wtlw tal•,ws u dr .aawiy mew. as Mss" 10" @wide ""omm M"e
tel" r N •due Jw 1, tsps Wtl N waw a 4- 1, 1111. W WLNat
Mt
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uta.
lar "ea9 *Ali MMI" IN 00 Millan of w Wired SO." y: dal
»W ed g: GI WII4tt, n M .td y emetaplat nN1YaIN of W
Maly fail@ IN w Net" "aM las bootleg 000111t.ef.Ywte N do mal"Al w": of mwcwrYy AS w wt« •e• o fon W
1 Lm 9""" " elope" fon w Vele" 11w dtnesa, if 1y, u " d19al[IN
b ed.eama rPrlMlM N w S"ed: eel ty..uYe ren w W1- "opo "
•earl fon I" 9uar.t N opt "I* of w Mew loll awe N M ""111" 0,
awbuw.@ n"iriw of n se"a w Ids 609"111% e10 W "err •gree N
.s"1. Nmer. foe saw kwo of Me salary Ad M @Mill" y oedou sed
Mgels"M rob. saw, ata "fled. Y w •Id••as1a, W
"Father was
1*atet•aa " w eat." "woe. ear !mewr tlaecdod u n• best
bb"$WNr GNSIMM, rWI M "1194II." . Price" ter ILMI, fetl"resat"
rm"t of
w Mut" Mats. Its Coney eau SAN ltse me wrr! daele"mee atop eon
WWI be Meda Ien&seif Ne dr w orif bf See Werof Mr. ss tta.f yes"
aewtlM� t 01106 & 01me -4 O L wLl t"ly NaNailof AM li ee Nie mw«sw
K IN aador %Maas by t Credit of SAW chu t . Ile ams sew"rrN
easel bSMd ae�i7 Im IMA ItMee M►W """Go ft" 00 go shm, V"Lm discuss fam" ole. W N 1
ad son Mlalaa or
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f11aY� he W geowm Moo" Alla" r at am M out ePM,fla"llr
s"9•
tibio /. MIS M /lie SW tial "Warts. t►t .pleats&-.
"aw «{ to eaeMYrP r piece me OW&fU nae as III* .ere N ". SAN
:.::.= tlos C"MQ. w "ne{fled frau WAS M elm AmeN eo*warm", •f
dnm.
OWN
Sag M 1, dMNMSarfw son eYCtR11d M NUO LOSS MCS. WJger
be IWw N •onto& 1119 MN.10
1Mtete sett, MeW ion e�e.eira of W COO" t.
be Say Aomb,lsN
a.rr ."W rtaa, toot w MArloo for w w N w MA "rotate foreseaN
N " N fen{Nee •/ W facilities mod"wely w ar.r". l"i"ly W
NMlyr •" duras err Yr I... fie .ab ". reset 1t nese► M "Matt "
las .now fl.ado w .•.brat rum Y lefea"Ilso to ted yrtr. "al
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West "Ws . is-" Ir w 'em,In
It. at hr•►lN err.
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/lw.l %.r w .t..
"rsb r "roe ISNrllry 009$M Mall Ldot.M tin w.•tporallr of other letaa W lest w,N.
w•: wl
I-1co I. not. a le be""do
w7 Nodeltd, Asteroid" es, dealer"
a. It wwaem, d"efaalo W IS w brat Wenn of 1" Comm, n
Warn." tl,o MW.
1. It to "saam. wlrYla ted " Oa beat ynra at W Crq u
«•sen, awtwt. !•".tone w "we w seri" I"S no)ca":
C.It l• N.sery, daatMi
nal, r It ami t nN um,& me CfyrI to
!lasses w aarayon dom= 94 stairs WISO"y rww &Pelt" w n flow. true.
A- to rat•.al," I. w Sell" 1191 Projects aed. of $.,I..
lna 1 awe.
0. u- tea• Wil N Maal. oeYl7 ft" w ►1byN P.M.
s.
efLMlat. IDIS -MI" Ws w ►lay" Peace wit M wtt/alra to a" W
aty. r IMde"t Y w it.".
OSNIM A. MINaRM " auxfrfOn tE1 MACE Is mmri""alop .f w
Mo"lt"s of I" "Me b7 as SyleMs" Oman thomf Sao "all held W •i
fM glad AS "rya. tlta ..MINI" Yell N lotted to N w M
owl .alrtla• .
.aest"t Nns«I W e -w" w seta 1y1a1ar" own. Nir .aretlre as
.1romem. "I ta/Y "rale he N Perfect" 67 SAM Geral •MIS be fes W •trot
bodoes, Prai"t/M w r ggy at W "WYt•a purl e! W sesY, all of
tet" Iwo Yell N at atPrl SAW r naamela Intent o nle..1 e1
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le"Wo s w 1. ya "."
12MOf 1. aaglata TIM to UUU I!R are"IOs1e. ter nal.t oat at
all of ops .Yes.rrua tri" &M pony. le a"mP r0hert . IM "mel" 1019
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.f Ped. )toe .tear" taow"a do Ilea n11"er1 edw.
e t
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Mo y 191 hese,ops an" gem"
Phe", .Pelt wow Itanetl be notAr" sces, wse" rotnetoo
dMA.
lk
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.11" logo P ter. also
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i. INe deli M nelw r "7 1.
."Ibn eans"t e. W / ndomttw Y", •t W Mi" •! 1O1.31 N PISA. Plat
"AS Lops 1. baa "Rap" PnrlNl ••wont M wet agea•IteP tse, IN -M w
Nlld.tiwr of W CM". AS N moral Y •"Ser W der Blot." loops, coal's
lolls•, w• tarty "mail" " N 111011 1. am 0111906,1160ortniosl •roma of
NI IaNadlal 11.110,OM. IM /•1119 1191 1r.d1 Mrll N Yr" N at • Y" N
N flood by "ileo•" to"l"l" of W CwMy as M M was/SAN
few toI .eard •f 1. ora /Was wrr N efr•e"1"17
seed Hunt. The "to" 4103 book Moet M~i esu l 4. Mo w W
Wl{ 1•r Ylanse is duct mew of far. Nt • eraa.Y11•as
awe Is" y aSPllwte los. M Nrau Mr eW AM,, WW fir.
Yw w n steel sees. w le was arrMa, M wrJges 1. ,."@t{". I.
rola " to out. octal n Wu r"O"nw .Ino Yi sf rlwly. at W
.SIM of W tar" n oopt.Wge. •t a0a tyN W Y ams torr w 1"ll
atm s." •Was "IM w "-telt all "ger M 6.80mads y Wra St,
Ilwlrttr of W el." adpss" Se r 19W to W mel• N W case" 1903 Mwps.
IM "ec" tail heaps •tet be
"islhll nplateral bon •Meda""di,wet he ryrl..en rta/baani".,.•
:s-eyeel e oe.it�e•mnu Asset •!blot
rltASO #llMssLemml Joe, title Nleys
IAU "ll" Nie W
sommed"covered ermed as lower morNw N W bas eiPrPf M W faelt.nmir NN.
bell y w ems "PlaAm u
,00 bew lf et Cw7 on aM oMltW" awM "u
a, Me w1LM •t mer W"d.r•11 duwr N 11.1M.0 0 or mss t. ••eat•ssr
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Nntte y double. "n nrfN prdmr "wit." LMaewatw ha trot
11.111" s Mfr: PwLd" Iota wast lalNdmlY" Irl a refs wn W ►alt%
AW w legal Pier 1W aaNed taps.
tdiltlaeeeuy mer •ams Nwlgtr of wt aroewst". w bw# w. be
Nai", racer r W ems •( la.l.asaa at sea ..101 at endo w bm3wa 1a
W •MIM! .f w /meted"• .f owl Oft".."Lest M MAI, M teM,il"tl-
all"t . vote bNa•o.1m yds tin radical n "s s. •[ was sea". Passed"
IA, rgeNps wet" IrN ter !same " tl...gl.eMlP .r ecrl les" laves
1rr7 fon ps 1he aatflelal •IeMaall w 1Y Ills• Irl@ lbw" Y W
.ata lee •row. Y t.•ll Y 1 •f was Ifaas sue n"ps"ty 1. bM•owr7
ton. W P"hoeb"es of t -ler 1. le, ll w if •! re. s"i"lo •hell re
be sPPtMopte " or" Saes. IMA erne" at er, .Labor. mw.( base
tawla.a, N w
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. llwi" of
W sets duly adopted N Pew w She doll"" of arra MW.
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.once Y W oat N M Comm" by of O"w" ler mew aWatr at of "ash
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lar 411tKK. If •o/ aYN LMy Wll Mw de1aN •f M /Ina N -tan.
lMew of N"ly • areilpq M/, r4. Wry my 467 W Nr. wa•t b`A-
IyrllflN N 4taroaoll. •r if aW MY M lNi, 1-444 Lor wertyN. -tTY-t
IKeaLYr WfN/.
All
NlfWl, trloloyllN4/at~awiwlwiHl l�r r W /44.144 Wll Nattlp"
or re W Laos, trlM at w��ttNftiNl N //r1 Tt W Lary NMWe
NN deunw Law .toll M wTielti tnyY.y 7fN
M.-tl-rty-NI(ltT IN
npU u W CAN N W saorn w LLarly or Iorstwt tfw W try. N
nlwfYr. 14.4444. N W Iwo Noe" r COU eWr Mllaa UrN Mr4Naar.
ILCTIN U. ffrrtllfaM b 40441[44. tla tato •r oq I..IW WIN[
Gall . WINe to H.1 M KW r A"4 NTwual INW /ode/ Lt
rtw/y. tt W mug of W L.Iry N •1\•4.144, La a -v0 Tiro W t- www
toaCOt N Wll M Mutµ." y ww4q-tat yelM = KHf N W Nt•
WrNf.
t1"vi-
=4=11
Y or44/f1y117 KM4lW H LWMIT/ Ito -rade It' o1aN4raf
=4 Lor rsLws M • MttlaMlN wear •[ cuts
4 llw of 417.4.4.441
n/oy4lw •f t•" W W, ty Wr-7 toy L-fYrt fw w
tela we 1104= 0. w~a ala o T.NIr4 f -W Tt oto LLrw7. t
twMYf N W 4.4444.1 Hart Iywf Ile WtIW tonnes. W
w rwl aOUt [N •woalWlr 71st N ro-IIWUN
fNrIN
•1444 tN' �4 t! W Lr 44444. /! oIr► "rlw W rwly t• M w
toa PrWI /M�4IM r r• Let ottwaory Ha1lAaW eTt. 0441 M need y
=1017
•f i.w Ial/b M /IL,0\o" W ttww W, to W
W IInt .lootW c to µ444.r aMt COM taut n"lW N M rLrao.o M
wratuy nwiLas go YN, W / W. 007 M A.1.1"
t 4IMS." .4.404 -Ml
a.tw ,trot w W. Lowy ay /4444.
lw �w N Lilo► roagetw ,\,11, w t1w aur ".1144
4WjI \KlwIIr. tw.•44W 44I11e NM WrItfl (NI ay, W r
114 MI/T1rW As". cll M fit" Itw Manor" wN11jN4N44NIylf. IAm
ll
clay mass If
ILA" CON. Irl l7 4.!1 .Off. Wt 1141Loa IirO
tow'. RCL- IW
,Md
sol.. vdw 4464.4.. Mea..17 ( W 441 Y W 4µ144N 0.46,
rue LI.r.. •r e•Il•una 46411.4. NLot1 Itr W rlatpw ►wry, MnlMfWf
4614-. w W "t-r/ry Mu 41.•41444 N44o. W IrwlNt tt4lwt 4.4411144
a4..•. tela rlo M44r for 46wr Iara\w IOM, Mrl46 1 W •loss.) Wlt
M'am-Au •.a ally Wll Yw Ioa1 ao11N to, "sit., N/a141M W MfaMs
of W raMALIN 11444 4\044 MN 4.46 r4. of Probe for. W to /y. //NIy
f.N w\ /14414. .loot, ••rotMrl1, M W /L It4w
I. In. 1LMnLt w a4. f�IMI rwlwi ewltlN wow •a
t4. MY • Lww oW fIN Y.n, Kr alwlw. roll Cao\ hWII•l ,trot 1.
NY to (49 Iowa r Mla woos.;.0 M /MYb for w UNnn Iarws
1140"41 t4. YY of rol4KfalM Loa amsass Nal. at 461[ IW.
MINT: (1 wN LaLa It nlunfr W •rewtl4.w M •! M 444.4444 4464444
YN, M NIM a-oN W lW "iI Mu 1.4.14.4 few w\ I44rut 44144.4
oaN, of (11 the Io" U Itf,04.444 W •atletalNW Sit" • aN•r. pta
IMaHrf44f Yt1.N1 W MM1ra W W/ or-•••ly 1114wt ItT.••t 44a. Iw
N4I •44.1 ala fW Wll Mu lwNnet few 4114\ l-rno t 1044-• /o.. oru)
4614 MIN 4 1.[,046[" W o1WrI 46 r •r Irl•" u a4. wH0 Mu flat
nsa= la wNM 4.004 044 Ieo1 4-11 Mat 1w4f4.L 1444
4.4444. •[ e4. Iylay Lille IMntrf46r
�frr•r• ILYrNa W MN 1. N MfWt. tNlM 0-444 tl,0 Icy 04.41
4./t Los".
two YN Y 441. IM.Nau ..*,"r NN M tll1 Ulla. iIt
/14444.4 4tTro MfNt. NlW4f vlr •F 46illwle fo.,walM /44.144. -Ir
411144/ W,w. Ow M I�TYLo, ww46 W 1404 rawly • o WIIK r•rid, ."
Mw onammuft W Nar•ow of r4 low " W 4.14.4.44 fat 114• N
IW •rtKy 4[144.1 ItoLa•t u
r 1140 opt. /urwt MtW "rl M P41t. IiY• 4.4, y MN1 Y/W u W
MI4Yey Irrf w104a• 464 W NYW Wil 044,4. Lot 5:44 1 L
44444 tW a, W la"44w •(W IW MµoNK IMn Ifwat{ly
!=Oar,
=O Wr) ao1 •t W Oder ..a/1 IWur MI4wN1 N W
'aw.N lw•1. " et• fyM4roaW MW trw.tw Llwj 1444 Pam" YN Arm
(W •Mr 4.µ.M"• 1. RNu., " IUI
N Lay 44ww ""rep .t r4 Uol tato,llloot Y eW WN MuNwi Irur
•t 10-2 .a Mjl "u' wwlw.o W twat' Wll M Y "felt u 1.74.4
•Lor 441.1- lai46w/ tMl Ml 4474144 taY. tIl W o44w N M a-ta 1•fore.
0'"',
N oW M7Y4 M a4. Ntw 4 4\144 LLr wl• IW
0' ,0,441" N W - w MW ./ 5'4. 10
. K/ iv 1Laal Ur N
411\ MfoW W IwaarMt 4.-11-4444 a .feel naLN YN INW IaTw.t of
MWerN Owe •t r4. lar w lyYlww aul•t ~Wryly Lal M w
w46w 4.4444 y4.. lw 46444 fwtll M all" " 14611 4414 K""ly "M
W f4W w 4.µ44[4a N W •l.to N 01r1w• Tf W Icy Y 44444 aloe.
cur url M 444..441 r. M" .e Wl4y. Y r• 44114 L �, VI4u1Wit
0441 N R.IN.fM ,0 0-Loda unit .f Mrw t,l Low
"M two" Lau, IatNw aW oz: y 44,,44 Nn Hwf•r wowwt
r altar IwNra4ar !tw 1444 ttiloL4tN wr1: 01•vta1l WC 411\
Wtrlr44,a/ w N 1464 Kr lar P.y1y tp" ri Lout oat a.N LYart M a
lTMaalat 0114+. W /oa44aae r MAN lW ua 04,01• N
lar/ N W Out" ff \044444.
2Uo ora/ 4 w of IN w"a. ION..14w.elw M W 400.1 vWr W
wMMUy .t W M toll tt+ll4r/ NM W UrtItNIM aY 4140 /f W Luu
Lot raw, Wl-aly MKuy"lI 4-401 u7. I1Hw IIowN. W {wIYtIM
r. fl• H M LuMy, Ul Y 4444./4.
iwlaloY of 144. 74. •few.
W •W'
atlPlaoMLN, fMl4YU
n10t4rt4IWI11uN Y 40111tH W 4I�II,atr/1
food term We /W W M"Naut Monte We M W •64»14400•. This Sw to
Mk)w We Ml rod is W nuttiest of w ttMIN1M.
SUM W W W of rat M 4m MISS N M Codd 614101026* Y Want w
MM SeoMe "UI. Se"M440 of lits YW to
Y rr. W.0I Y "
uAs ". nOSIM""1r. "e" TM:e{y. to" 6f l*I00401 W N0•t1 Lem ter
fOdOWSM. M M AW"60 NMLN! .t1WI of
AI So if toe •081109. IN insists of M Ieoro.
fir glib 101 P M"o of IM Into w "Mr Be+ MYo. "els
11 f"1 o1/ople DoostIU Wuee of IeM{"n U.
�I of mu Com". uta hots Mod "Ori o rtW It woe Wets w Y. M
..1.164 ON e uslay olM ia6 SON. W "non 6801 4"Ll"lo twat 6f the
CSM). w" M 11,1 t "sn w Setif" 18811. Y es0lor n M 10"1421M.
"sliest. elMntrt. Iw10W w otel M Mel, J"I "*)"go. as "fired to
10164r1►wtes, , wows W t ends" • tank oPy ae"6M .6026 w
Z"_ nIMWf t nm11eM. M W d 101 IMM W seek MrIY �, MW W
nit 110 Retired Stn, oil t OEM folly Mt tents M W. MM W"M.
I" elt10ha5 N w 1MWM M M MW W Mal. rems, tees. w ee
Nwllf N r11M1 Meer" 10"1! h o llM 1e0t W el.ad. of. M. Me
fogmerr. Y mut Me /6 Yl/w W M fee{W6.r. Y M YfIW" h toe Caw-$
foe 110 00.tl6lss e! M wee silt esa.r "I•., "ILMs is M 16041.U. We
mu
4764w. W sub." he" w weeot Pleaded Mr M forms of toe
NISeLPII ot. IMOMI W Nto{W, if M. M 100 MW W Mont" untyn
Mess". oil t t1o•lM M IM fntlwnt /M
-fit"" 11,e•1. 26f.rw. 1.
m610 M M IWIwM fee urn w s.dltler UPON Wales wasi. "tuft w
"Mem" µ"wt seem Who SWt"Lls my M nt""6 Im ova pleads. w for
"MM Me MMNnM On WIW smrUl...l Some, a..lat a Pat-$ lla West w
flMn , P•1MM fM s11sa PL."fw 010 Mt I..o tries w My M 116644 tees
soda
to MM.
Uln Iter en" we 8.10"two • pan" WesooM"o of W Coad wthl.
M estlttf of off ost"OeNMl We t.2626r" pe..l.les ., 11""t We
It W 010P,et1y .fent by Mo loo"test feeds of this ION" Mt "aa 16018"f"
64"1 medll I".r 106 06 fltal M Metra M gown toe Wnl" of M d
.rSofM MY6f Parr d W crusty Sir M point .! M peMONI of. Munn
w MWC1e, tf oq. es M" S., t Mo Wlad of sty seen NPO mer .pool""
h foe eo"enlON. to W tee" WW bolsterW Costs? See M 64lle"ror
fum.f o[ Y" feat Int M" low W M 1W..s. "MYON" Me." 0011
.smmllll,u • {if" fifes W) W PIedP" IMP M M tura trotters Ir W
Itrlgt"r.
"10 M Im.IrW Wmn aptMNt.t M tee *f Mf": •O)OOCS 11 HOOT
MIM 1• fJ♦ IOOt IfSStftSPS M 1111 IIID 1St ION» M toe gevout its MOSS?.
wA woe t� oflt/eIo 1111{i toe ani 1111110 Mn tta 1,1it "tier M sr lir
IMS mu 101 SIM.•)
as MSS an "msW" Mly W mu Sae oS radl.sf" I."$. it".9
0-0m. M mu IModlar"sM of MISS PrWyd "wt N ay Mu ral rtilpte
theme.
INU UM
Metric 10 ed OWaOnd .11y Wool -e bosUt Melt y 9" IPM
W1MI
""we" ars self" N IM is" m of" eenerrr 26ntf t is W IMP"
101 ftµeYnt SONw M ala Ml godowlf" MMM" ,Mw rel r o► M Yierr.
8W)tI t mu 16"Utu" od/ dM Mitt M . 100 Mlln Wt n not, sad 10.
t".re.r Wear s W Mn tired COW 006010990. 4spM9 With the aW.INlO
NWW. if ay.
1et6 NO MCI M M 261" N tesBM esliSn ern for or Pepose Of M
.oM{d " *7 Mly W W"" telthe "rinse
fNw.-M/ldlaON ha0rkwfti4444MSW W MMOL
e//rww of M
..somite" IentM"mrs .f the tem I"Loss".
to 11t1Ip11Mfa01. Ida Sia CN". "MI". eat naw Ml. tee W
her gin" M "11 s M SO..
y to ChaW lrA toe Men .f C.Wory
caMYt*elna West May WA "MM h M Cl ok ed w err .f Cary
C.."Momn..1-.r Weill *9 Wilk hale fMW
6l1. .11YM"W M
r.
*f"o"{ ."1, er . fee W" ttonA. "be act*". LIPrM", rodrtae" .r
.Mwlso n uOrd atrMr, sly so of M , Any, 9f
(Sak) tow 1010 COW".
Is:
aTnN: �~
sten
cwty Son w oneretartw
MP fifirsum Y O wtmm
to ed emnifW mutt
ftl A" MM is M d M If"a tetrtw W W w-"•.M"W
arsllr{tei W
fol 110 ase of 110 opt"" NPM" Weer Ohne Istt M . nett W
sorml am N M tet d as..116161 bWw b1YM y
Mt1" rr Mlltrd M M toe .f .9161,l rM"oy of. w
polow l,. Mia Set1M. M16M Musa is M fl" as sir "rpeeW awn .99".
,eft" Of M MIS Md, ore 00 000 OUP M 140010W.
Y fmM f•fNYof
odes of aeow rodm MI rrWttlltestMo .eta9tt16t Iee.aMuttw
t)
ht .r 1gwrMMat IMISO toes and M in I W Grommet" KM 8.16 tetter.
.11 Y Noww Is foe 64rslml1M- 11[0 rlak 101 011t. Mire Wl1 26 *attend
M CM Mot of the uWfont. W the heti Mpost&# "It sollwr. Y "It? as
N"tlresle. a Mfr fol►► n/nMrd 1Ms er Meet .f OWtrIW 1.1M110t/w M
M
tM of" 6861910" II*IN1 Olson AMR. f ON urs tans. MWny W &Monte
us* Y M" SW.
It 1169 @"Mr. WOhJOWI Y Mn ""Ilia W UPON POISON .f 648 sees
se. thio $WA My M momewod at MCC Alt" of M fee tadunu is
:;
skW%O "r M 44"1 apnps Nltt1M1 *ret .e one fWN► 0486.101" IONS.
OMsf a" "o LM41M Of 04 see ,"u, MMI-$ W L096rMI nM M
ta18 110/.
Pao COW" W Mr teat Mlnna SWI NO M rotobed .9 uw M to
,-$lour toe tfWlar of N .edrMp ear @a& so. st1Yr" for n"80
11
"I-$ • Pert" MeµMiad So M 61961 ofsession"bola" a 06 eliteetla 115-1 "y
Yrt 0 M"lad 6•► M" Of "IM11M .f Setts t M t"M10t W f"h1S of W
tOSS Of Mwtr080 M the dry of Mtlty t" 9arllukla "ilaa of ,o"ee11M. oo
"Semites Pfwtw, Of Y "Ila"f M trWfol d or s•••a•I• ••y "rtes .f
.y .1 toe MW "IMsM f" n10eaw 1Wtil state s, M6OwIL- Sen.
It it Mood) testified W fMCW rot all M". aaM""m w 4%Lgp
.stela" M Lag. to here w Y M p.rloeau P..ra. s ee It M trees..
.f -N SW ONIM Mod uppere. W NOW kers Nnam " W "/PIN W Orr toe
W if" N eNwf" y M. CWetMlee W lar, of M /este of ri.nM
gflla-lr tun".
1►" SODS 91 W W oil mu wslSUN W IMtreW .t a 101"1-M
110t1MONS 10.1 W Law of mu Sued Of I1r1Y.
(teen node", 0 0Mr 6101
to Use of gad 1.e10Yy fM.0 so of r tor... 109 Cord rad P""1.a
bike. W saute Yee "IIs Period a11041, oil Y en1 IWIy pro -SMI is W
""Laws.
It some MM oil Stdo of we 6om maturity a*. M M ere aced. W tea
.f awn Neely M M evert Wli M two or 110 h toe 707614140" Per
oat VWPOns o! n" ILM, It f"6 teat to *f,estedlrstl0 Watt tea I1.IM.
It ohall M trotted Y rlNaeONllrf Mme erkor A $.Me MUM sleets M err
6""" or "w"ad toe n6rlNl lrm bond by $$.ON. sold ILMI PMlles
M Mu Nr/ 26 2 Mart M ttreadt t. of" a! 111"8 r 0of thII
w. M/rMt d W 0."oet{01 NW MLLl MMM eel eat serMeellA.t.e d thio
WA it MMLWWd ..s1olt .10.1 .* M WfetlM" Nrttr N 116 NWurs 1% riMltsl
105 6 W NAM
*MIM .f M e.I I" shall M lees W M rod" pr.wW "eat
Mr.
ft M Yr Wlipmeta 1st n�t0, utl" sovirl MW Pr"tw
or .9ofWl1, led s,y In parr" a W I,WtIM. o atee, It sr,- w
"'r4@4 lrunta ►.las Mn y M ferny .Pet. Iugn.t M M Ae Asof
Mim Monte M "It" ter:"M"M ,all s.rM " oulme w Me rude
M
or nIW Mf"f M "lied M, "".fPtl.r 4111 we " M Mel"I" u so,
.wllt.r ou"IS? Wer M SeOLet"o. We ars fo0u0f" own of We toes
.I P.ILsom Mnt! M "Ned toe n"el{, wit sew M nMln its cowea
turas. WOM4 to nteiM P.VWS .f jr, OrWiNI M M *used" W g.iwt
1all10TION ct7<511f"i
telt SO" n W of M "W MW Wert Wnlrnnt ear
ut[in" M )6Met" 02 W C"Mlt Cwt of r hiss"- Id""l Great of
else&" M W for I"lr Meer comr. n-im. nater" We
.. It
cornep. M.9. of Cosrsy
Ca,ualwn .I 914M
nor CMM", 10"044
IM eoltMty WreMMiwY. Ohms Our W M /M.n0 0 pI110 fee
.f slitsW
S, son M "tel"Oed We&."aOUP M" w"Ias set n COIL
MM OLId GO etllW" les or tVA"uY:
TO WI • ed /odMta n UnI III No "r
••�•r lCee1.1
TOM reo,rt
. " by M CW f"{6. far
Wlnot" 1.{rerl
1t to ' " Join comms" wee W1etr gulm diet. to "two
nest of 016 ftsete p not A
tl"u1
edllt"ML .edrsw"Ietr a" 6144 Y Yes" %Mead► 260 M Ilu a".
W t41ff/I
foo• TAW YC•1f•, aw MYwIptard Nlu. "sips r
efw"n M
(IMP• ad .Aims el hr /red)
(11"111 Severely or worm" liesu ta-d- yrf
e .1 Tfw N)aTr
l/ ee WA
dras beer► InN.a.Fll -Mehl.". WA tl1-
ala ftll ►Mitstf a dWel•w1l boo": IN rte wt •r nlNu.tlN Nobel.
(sapd.t-.t Trwfardr)
war:
il�ldea IlrfNtNr;
(oar 1 . iwt (t�M
re. Ilwl
y
tltu:
IYIiCI: r Rrrf-r ALL M n.fayred we N w Ford will M Lord u ale
a�1 N w hwtar" r taaa IN atpawla) u W. wt~O dR-wrl.l
ad W .,.(1616 .w1-arW Y ,altered Orr Yeas w fads of that eight- Ilan to
twy Nrslaelr, was-. oYKNrt K drop a -op wtowr w am trout
t.-sep N►.lofts a11q'Mr to, Lord e1MMI-f r Tfw[orN I. WIL".
RdYe..1 ) w w he1•Mwdn .1•f M IrrrrtM I e wwr no of F w)at
..." •..days ad . " Lit break not-rfaNJ.
It.are U•Iladleldwil •fang. t� laal/tl
A.awMN
actual of
:��a Itrfryy
bola -.-at far
f�tttN/ LlrirLlrW a"�L
f1CIMP 1f. M1 HM MOM O.YYTIOM. w 9rr .wall rt M at
aw1dM 11. -fat N Mel dltarur w a Node of w Bled, or"at of
-steod1lNw P"H 4111
11 w H lN.NY/9w. N-tBylpee1eM.s oteaf tsyq{{ dpway Nla"l$7 r Yad
CY=HyIfW onovida, rare rlWbe t' afraid,
afraid, 1fl.l IwNlewtls.• elraIrNIl«NalrYdd1. /ofI.f
►raM /.d. r .aWtaMM 0efawe. Save uIf W
wasNof flar" Wel--
Mrer I aCne. .W
117 Mlltlall 16dlNalw awtMt.
at Ia.l1I-. Y ay fat of F•7 foal forty
1I) A Y d11 .t el1.1 91941 .991..1 at W
(a.y UIMr ,,
awed/ Wt ane uMe7 W dtabl9w r WILL r/d41d
00..
a -"Maty -[ .11 rtwrd r eq.r-a t- Iwwt/- eta
d./ 1w1d ltalfar.t dllr of .Ia 1.Ndt N wee I,.at P.O.
tWr.a-rlFs. IMdW ardwYwl, /sari" r-. fee to ltd H
ins I" h -a of a•.f as aN w -.r.. N M reloaded. slut
trM tY Ilay/e ,road: W
(l) vrltCNdtrwww.f r w9a tad) arab towboat.
All Of rp Me of w "nieWM 1af-rN Ie.Yr ..d/wsetafr (11 •! nt-
046 "a N7 M f--rfwOF awl.►e/y alydNft. --Y.U. ad -Wt Nrwy
tet 91411- Mwleep as gartr.rd bo w rt ra.Mdwlf "JYaw u p s
fNw Ili) YN S=F
Ifptdt V. wwYttl Mrs Mem. /q N 1-17 Y ay -t w rrtrlNl
.t ed Iradd -alp 11111 urr Wil M -dt11rN1.. W red". of WILL
061 Mill M" YN d MOM gh w $Mt% rhe YNt"fur snit.. ale
wtfulw w N - ww red
7. elt. s" /rWl►al -,Head .f W Iodaa rwlaly
..,,W. ypwr bola 1--- dew- red I.., 4 M oar- draw -rat/!
boa wawa new, Y wall w ►Yd.tod .f beetle. 16 e.,"t arm Food
au 1
oeufw, w Y.rey elr.we wand,. -f MW World ",boards wlwL« wdr w waw wt:
•. wee"o I VSA. oat 4w1.rN aWl ..we gF oar"t w r.r.aw
Id w •Troon w aawr Uwwr l..ad• lwnl.
or
lrerr /W). Mlu u
l.ng on6"6 W NWIIa1MN.
1. II/Mt ofe -=
I Mme. All I-da.1-d - d-Nala 1. w w..dr rade
ell M1711,../d yne Gay)wONyN NN49.4611. bol 906
tolls" e..rt Md q w •atlatl.y do",j dfufly: r
111 tire. w tarp .111 wad -far Y "w Pea N w
eal.Illlaaw, g.altl al; Z 7t.W, Mgt r Moody oroNed w
arl.boo" w w.a-lw Wnu" raf w
.1.I..w tl+Nrrw M « K Mar w tar Fra w"a.
a) ter• w a••af raft /teas u aaM boa cwt- w
•fwlw Nwr MMM- oar. II/led• d. W •atrUy
1611.. MIM Y Letter f1yNd W aatrtwN. w•a9a <)/Lal
at boa. M r Illll M Mw9.dw w lip lrerNt M w rods N
rad "emhell fae� w Y w red uufwt 1.feade r".
.,prow Ka too elt�a N aMf "tYt-r► a Nef Yp-lN of
l.adlrae r Ynar. w r.lar.lfa IVUrI N w Mr/Nl H
do ION.. tft w
wwfw/W M ale Illrs 1WIAadIpYla boq ,"Idol sa
w
mars. if ape
- M Idtle.la rM1aw w .ea fd�
w9 rd•rala. V W troo•I Nf.e111 aed
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aNIMt-r r ww fdw C boa 119117 A""
t7> fat,. w .ted" .wall do"Mta t "A WaO Lw M
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tldr tl"INaddl a1..1.re IM ad, J.0" .f w Lewy .our owed ►tNled
ffRIM 11. IIC1.ITT 1Y IOM; '13 IA 0► Cortege! PUMM UTMU. fad
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Melly 10 all •INIMIM OWL deadliness at, N .w Nw so .oral.ted
. dNw7wa -r rnPap .[ w $718" ., rf ay M1 061-9.
Cd.p Mt y POW" aIWWP.wfaELI" naw clerk' f r faad1. waN
-.a vele." teed w 9 - p w lead $redead by au 1."Wat". w w Par.ao
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H r 1,dfaaN Nlrr rt eta reliable" Nd 1NMMa h-. r
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t W .lpa-w (11) dM"ooelw oar IwYaul/ road "td..tad
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ar.wd.w edla.eN W w 41 .awa.l.a fed w Mud Pa.-
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w fay W aaawrree at w 1µ..t17 of dr weld .anew. N1
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wrtafwe r 41 I1.Y re. W4-MLOI. few Nome" at (lit)
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fseaaN awlrr N Y to fWy wwwto.a w .f W
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IlN M rJrw tar (r) w Orb ter aft"/ .f taw IM1Nawa.d
fttor M w I," a1w a am 0 df .boa ew/r4 W fawwr.. add (11)
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lade
to 4-9,rr "Mlt.ra dq w !.rapt.. tat;
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u W 1-rld1. ads drN.tt M.11 aw l -N Yaw, == I,lrlul
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w rt rrlMl-1 ►qwt -..a::It Ca'IIr► rWt d.N wNIWM
W Iuww Y tad Iyty 1 -f rr.up ad
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w Ntelwl- Nelw of fatal. if •y.
(.1 ►aWatM, W C-wq Gall -19..16 lay r aware
1rtA. fay M M Ira. ad W •aa --m Aeeatrl•, 6lN la Mr.p
u -ted ane " AddeaN. a oar wfflalr a Idelaee W woad w
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. 111. K be tied y NMeFMt YKIWW N W Cewap e.7 Y
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I.W.
M..w,. is Y flow Te -r OWL Ma a... to wood N
INN► Nn -a (lql N W Own. Ad1.;r I.lwlfrade M fNeleN
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nwlW lied Irrdwa w w YW w 1a►d few w 1-1am
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wiw df w t..rrsw A--rItF. M ftdtaw aaNdlY .sell M raFlfN
4 M YY l -Y 117 Ywrw Ae-d.a Y lrtl. Y bow boil .w9 w
aallalt wn9 9.,1,117 .b ba --t- AI --,rt CeNt1 lrtlwl8t w
awflar batw) •rad -1/161 Y W eased- /u.r �N)rwt.
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w tMn aka- rear. "I be da.-I.Iw .ne.rllr a. "fart M
1649 reMwMtrfa�W, r TY y r 4mmar" C ten of dntfw
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r / <.) • der -p load K lrwar 1197 Idw..d w
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avert. ea.11 M ot.d 'Alia• y aer.Ire 1 ►e -•F
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sty I- diara•� d6sa•Iaqwarder.. q ad
r a6adar. of bow toots wWi ..sine iwrtwa.rwt
dWl M Glee od y w 4eed I", fa" I-rer: at
(o) M dEMAIU"nsl iarrrOalte letter of
11wt 10014 a IM I" APr. Y done at W
berWLdln, y &eon• If ssa ban to farm sr long
'W -1t W Md 'Aa, h Mddy' I. at W Y
two at INaAa
M tab &leap. revel COMM Ir"erdt omll tae the tartar
eror W OWN$"" dmru" to @do"tw I solve w MaLI N
pI&Ibe of eMi W La M be law sten. r W dna "y he to*
t
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pular. It ""I M W apty of W /aye.$
A@m" t WA am PAYS" AIM/ Mall. i*s I ' r wd"rlMtlM
of "mein Inn M Cow". ""nears W Amenity for • dl"ts of
err roe A 9r M A"r" CtNIC 16ermrme ear pf"U Matas
AID W -este st W realm Aerrr Kabir ItAtnew to mod"Wes.
Wt1k lar nM r" Cama Mee dna Myo (@r @tae Npt"114M elm
Pori" M 9111, abs mMloy war tar .boar d ,Aims" "y3Ms
mWa M 0"otr dMaed Cents weNMl. sewn terms, .IA,ar
too Mme" rwr Credit ImUmbed M K began W t.rn.g
/Arab art) "I" or son tsMfine Paper" rge. It &
dmwM is M" lafff N an swerve "Arabs Creole
Imlrwle4, 0. tally gay f"1"Mus W wlyd limits at ams
aftm Am CIM" warmae Crw-smy fall" two
dtdweaewt, -ONWt" W ewe of easel rrrd W user,.
Amt aenkner" tN @ale smmw OMmrg trams Iresemt Mk1
be uPseamsy sones.
Twd .Ire WM•r M N say rim N Now sir to PIM tarn
N M deer"9962 4 M. Wane. Asa air • Waava wort Cr Ott
raw* old asswe M "ppreprton w N M atdmaw fres tar
an rtepa W "lar" be W Wet.
ft" ts sad a"Mw Om le dµ8 be .w mly les oar pap«o .f
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r sdpf prier. tmu4 WW w tudes4twt WYK.. w fm
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any u a- IMAM 4 A ON M eldmoe W "gorse t. eba
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ad"rm Aon"el@e 4 od@rtle toUI teddld I. lap rnkrM amts.
M
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Pont (IM) of W seer" of "wtMw W
l drme studied W
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94 ",eeeMr o@glus 91M nto can 4P.Own.
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I :m16m•"of .11 99 r taw of tela Carley
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lo@teeg ml lase@. e""""@ oar rear" al W Co.",
"trim of W system.
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by
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twwts. IOPlmerms. impressions. atwL M and MUILON stab
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W ."I" A"seewt WIl M roe"to Mom W r@rrs94 mar ".pestes Wnu
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aueamdly.
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w,ti"&atM Ads w$ .4 W leaders Amman aril be naadd here, suit
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only. In W A.esfr Aonem of be Israel" W naeww la AWaMrLAM
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tem won t.rsoU s Mall be God"Ised fele W Imam dames helmet.• N W
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a. O/WTIM M r3WrI . Ta Wry 9111 euarlfe W yam sad
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the
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otrl4r" w WN at rww r w Came, nleal4 to w aurettpe W
n ayr.t W bgal.r. w Mttew th.rw W w opntW Yaw.. Nr baa.
M"" by Ho lit w (100.1 Tmor I=dlsay I144SON tem oat* .f Ylt of the
/IM.�N "IIONIar r [M ray.1M 1 UI oarR.rtn top pale pea .t W
atoll (III .0wwr{w sages tordl•"ly 91"Hiad W ata of NI• .1 w
pe•MaM HllPRtlar: (l►1 "1204 torr W r.M.at. aM Mlew C.&rP.. pa
OVentl4 O+wr W w pl sine. to W wgate value retorted r. 1. Ill
Hata, With fe.pwl to NLm NO SorytewN la Fera: ale (lul) $.,W Wt:
(a) Wry ole aMLW paw W Gay AS N aawllwo
wiM W nab araweml w tarp V se.taala l am; W
01 w Ma ddllar&, rlrw r Nntr[4e prwldmo. Son
"W" Y dl Lwt 1.71 tape W LUFNI awl Of pato Let W
"Mall a" Mil Nw. W agora 4. aSay,•pi-I yea
th.IOafwe m all swr IS Baru oI"Iritep, lrlwW tN
pup"" OwUNts, (.ally MW: W a11m W brw0 as tas
fWlpa. tab rMtrNa a Wtato Y WfaT OberPRn'. 211• glare
CW
dealt
tsenelos L.ds u, at)rw r atalrful wwal
ag0 atprl Y M 0.911 l.M tYN w es alert •l Veal tel
ata whateI that =le awn pet owe far le a./ final Tut
lkpe"IY1 N all do•lo pe s. .al.aarl4, WlWely W
Ff.pIR.1 Wtttawl Facey OOOY.
FM II)ps.OM r t W l lknO, W -ft"w" sLLf.w CYtp• W fseruly lyrroa
gar Y ")e14Ie N M Y eg11y Npea&rt W aVer.tta o1 W y..N. PRMIw
wl w .erre r • raMw trON /M oats talk YJrww La Na CHO I.
rs&le pent/YY: (I) In berate am ate be ")wr" for! (l) W on tape
"tat " root fMNrOOad PRIM r he=re. 0t 61 srttlrwa , Piney l.e".
ILL) w ereMwo tare r W 1"00 OWN w Ins paw. (ill) alaoty
*,Lot",
toerr•• r """I" begun, M Weng Nut ..It n
..raw r W 1". 0- •rMYtw of PRIOR." NUI ..wtlpeti" age to N
tombs with ew PRMaw. W (lr) In froawr0 arrrtetWl. N ma ost. ort
-Ow i@pee /w mew Mm Veto, W At" all N o�aw u ea. /y.tr NM
..+Into OI Fref094 ."I "Neu,
a Y M !haled .ilk MR. 0WY
WHO
1prrl"d wl" Iled a w I.rs" Iool sago Iattr_ valla, a t..1t"t, r.
Ma NM ell It W at O•owa M.arle.0 t. Nut ."logs (ul Wit M W0
M M "Jmwpe tear this .lora (Q .10"t w ..arra at tar state 1117
1 CalItC11M VITA tTlfw. TM Ct1ery M. u w 1.11 R.ett Permitted
y Lr. foMuo oil lar". etlle41sa, mta-. w tear onstans .lplt I4
arylNlul .awYtNo N/Ygar w W /y.w Y .WAM W1WLY W ape IM
Leta W NW T •Fo""&e •I•r ses&Ole Wo"I mm Me a" *art ato" at
.wap 41"Hol.
T. afFWt
li. TM Cagey aawatrs. u W ape persimmon e[ w tam
.1,161, to "Ofmad Of W lath loos I'A" Ina It WILL Son r Woo at W
free"" at .Ma 11.. NlM all taw w Itrlao 1091 M"& Y M .r Mae,
•n Obligate e•tYr Itchu w U" Of 1.OIw L0311)(1) W IMIw 141 .1 W
twot."brew" Cat. r Irl. M aa.teae (w •900•) er SONY wll.ela
nPa1091w {wlMlllt W Nld soa/w W w tansy, ttrwf .W. ea to ..try
With alt tame f.t1►IYmtO .f w CW It tab 4 w Maw rplt.abla ..
"arra ca llmpalT W wlrlaa trm peer Loawe I.r ted.nl lata w
fWlpr&H at
the
(.gleet M W N!w INJ ewY.
O. pw.M.tapirs. Tor wtPMtw W "WM
luh t a( W .ga{w
1 .r ape tow" ..""a ant. des On r""', w raNllr.a .t age
aetp 09O11 lad&10aL.Oe. Ntt•MUNAt4 fere Y eta( "m La..wile.1/ 6.11"d W
Wee 41 s••="roaaal ga -.f, pet .awl lr 111,1400 Soley t. sl4lltr. t
.•/elfalas •( "rest. '"no a. tab mots a rteeioad tt .
I lerw T0111009 stop pea (1000 nava !mods. tw Carr I. gay
artt.r"d Saw all •pilta041 les 4 •cru rem Iowa W Meme W N .gap
W
Sea llmto a" N /L"w W ILoyu Ire. Y W ww.r W o w MtW
partes begat.. I•a•Va N w waawt •weWiM se0I"" IS
WW
M(
late s ol.a.
IlMp.t F••N w w FUaset r •/p0•taaaer (HIItch smW Yr
reverse 4 elpe
Otey Hto w 4 M title" ape serr61 of w NIL" lel OaW) M. gar
t0s.im" of W /alt.• IMI Ira, will M It" o61 41040 of any !leap. lir.
"WP R. se.Irlaw .dare( OR WiM twome am"" /nor r..f a awl rob
waM, w w.eny L"W"Q. mase w'"IPtI" OrNw M thl. Yw1"w.
tML."m Oar PLO" Maw( IN w N&rtt of w Wlr" I..U. w all tato
w W seri Of w con" Y age W me tw am MLI M pelf W "Iwo,
tear. 0. YW W W sewllallaa •t lkY Y.1.aloa MOW will M Solid W
Lewy attrw&Ole M11IIOtada r w Cwwr t. "OW6Wilk wlr "w W
rim them& " IOu geR.lwttOe. 1be CaIYT Wil N e11 (lees, a aM n4ar
4" got s S""" a" prawn age of fi •f w Wast
►Ilse
M rt I gaps of W twf111.f" /(.Fere galea ptO swwlM tgaWe LLt
al"r w d.taY. r[ 410 parr tpaa.pewr.
a. am sf(ww R "m M t10Ow IgM. Ube It& uetr aefa A.
Malt M elwl tem sm"I, O"IOttUN of W Comer IMM41 in ••.orYra age
I61t. e•sr gal w pa•aOOm of MY Owtwto [w aa. !teas• o he" bete►
oteasl/ Mr W Yalta Of der loglowr Gabon Y 61 Mots W t. w wt
rrwM" OMMt.
weehow rWrbele YNW r w Conte Coe
of do MrtrwwM
W M.Y.
fr Rosset Ilaes MOR ummmtr M aM)ra a W oto W .Map"
Fella MMimlr -font rT lryolOat Murry west tem tat". a. W W
lldd r .lava =f IW sdtallet&O .moll M tilt W =t:" Mase We III
pertl.a teslas alato .! am Vas u Ina..agar(r , aVetat age
Can". LneMrnr N MMw no peer bey wt." .bene[.
NN taaer.tl. W (C) lay •lager 1." M W Col."N W Ugo r"• I•"rr
M
atawa CrNlt IrlrWese! N • "pelt of a "w Inn... 4 a 001ua. let
M taw r as prWlel W trrdn payable SO I O.W N 6144"j"O/r1R.
•Ml Iwo ttp W tonpltp "r.
OIL age aey Nn of w rteltllatO eteeond tt"r w prated paapap"
taiga omm" r a" .ltor" by a..wlrl4 wlows. .MmLaru Or au..
paN r.
re Fele r.laelao rwlay W aMarlw0 w an rt raapWlT .63.1.4n y tee $.flat L093 Iris Immr.
1.noolotNe W r w
bMatsaf tenon addl"/ tatty IrtW
o It
reit..a thea all .1 toe NeaI. rllNa m .111 N ap•rN
llu .am
.YI w at
&Mi Fairy Marl.
4"lttwl Feeley Meet my re N t11rd rraw/Ir n aey al" Nlla the
Carry U I. rfaat N pMaMes aM •[ W aaraaarao tab Nllsea{er a.oe
a.rw1•.f, 1f ,III
e.reY roTlw N tart Mr tato t." W MNwn
age WMt• w prarla•d Malpwr. tm rt HIS tare a• W (Wil.•ame t alt d.
Too f.nPRl.f Iwlt/w toll r! M/y alp r•eyMI N apeltLarL polity
,M. W frto.dl of grit tltl N "" a mowl.N . ory)MI • .Warlut
"111"1 .I W "1t OO "lab W no N will N pale no at W pr•a•W of
la"& leM.t belowmin.
TM Carry rwatre for w battle of w usaw" Own of w Mrl.0
Int YW -a 4" awe Mw&a fang• 4" ttl.00MIy berelwUf Wt W CwmT
:wit, .4 tee tW of lrwrar of lay adeetl.N1 twit► Ia•ta. t.a. • f.paN n
mm
ee ree11e aaawra N W 11014 Riga/ arta" benldr N WI W YNm
ar."we Orli tore a "III• it tW ad /O "Gu t" W pew (tial N W
aeNlee Ya•1�a Fee.lr.tr. ()IW.p attMt r eM Wlt{wrl Ferry ter. W til.
,gaeadatr of tm 1rY NS.0y "few" Steppwuoem of W puttlaal patty
1.tY1. t4we tee parr loot W Irwe w11 nseaa .www.
aww•r, r r a'.Me •ell ttW "pan M tr"w N (arae r raw awl N
CM war rare Nw It t"% o' Ire W Vl.o.et. " w .Mi.lwl /airy
1rY .Fella rt asarNlT offal w =71= at pa t.meopet r w w/tlwrl
parley Orme taw w pro uor age w YWurt ON•n wW[ tee p09Maa
.t (weal LOOM temsato.
Q. tfswm OF OTgat7
NOLttp11. Tta C.rq Will rt Iaw gay tiger
Nltpalaa. .ret We w •w/ltlor w IS w •par PROIIw Wait.
eral. (Ir w 11a4N r61N, rt' rlrarttT art, H are u be. er ley
.pet. tor. p1R.N, wlFwu, aaarNsw a aper oft up Nay P::@rtry u
r NlM w • mlty wipe sea Llas of w INN W w I."Mg ((arses, r..
Nllpaat/r�l& rata( tO61 WWNO ."Mary pwatw bent.. TM CHO" ay low
Ntlpaur Few 1rtM W tltaetl Feet. too as t. of nomtlSea
N W 1.61. Nwu I. w
•" a•uw w .rwlev to prlwr taw w tiR.pr Fra W no tal/setlw
aMNt. r •Mraoe oleataNt r wt afire.
g• eLdw0at Ot IftTO. TN C.mO► t. •efM4as W ITw rill .•valga
prNr of ow.tuatM ser{R.r nM .ill organ all .aplryeea 109
aq Nfl M&e7val gof 1611"1=1. - 4-6 of W ITto N N .a.erM
y • tat to Nm wuw y • RS &.a. laewtry .tM.ay LO r ewe
wlurtMa N pnwt W Carey fry. W..
11
tqf COrYWM. TM elearts W
Cow" at 11 roll 614 tale "1lM
I. toll 4 tW try wato gar rare 4 tab rtNtW " W Onalte pia rale
resit to lab/ at w mlYlr far poor frac gaga rWnl lraa Loa WtpMO.
tch. 2. 1w tat Split" ly/ICIt ap @"d W "tti�an w W Ni"r rrltWl4 L
4 w offrt Her lOareas Wrw Ina r w1rYl.. -Paul of "~L
VI: rYmt Y rJ sell" at MW lrtlaly Lala" w Nle Y to•a11pe
.tab , 10 W rWy of W r.;,- Colney Oaretral Wt .r/ w .f w
Iy.tM It w uW II Omlrae pram N tMley ewt PRM gar CENT.
lrlt•ty aaOa w"or . teY•r•pey .maw of aarMt. errsaaeH •aersMn
(•Ielwu aYuwa rN'1. if alai(w I. miss" N W Caws e w r tN
Ila= all gal row Yn am w seetor tial of w Wan .f W I..... a
it, It{pee tgteal. tab le rtalaw to "He"M was 4 she Cwq'. w
r w system. all of errs gar an flab He=a0t (12) If w w r w
1pw.
Tat Carey owwrs out r reel pr w 9. o (m) .[ W sentage
Will M Malar "w/ll j IIMIlt age Voyager .gam tem on pntara.al
Wer. awr Cho I.,. y a eNF.MrwM.l wr a • wM.r at W l.wr
pNlu.
T nf<Tew Taw w O110TTt/w " Itlwtt .claw( wwlt tatnwn.
tem to " MI& .at owNlelw tpr Hto w g&taere aao0ra raettlwn w
tarp a atn•rlto 1111 Wr ae/ N emu t. amu r 1a part Wipe a grown
renes Crests W"AM w. (elle W YIW tool W Itatr.r elewa
.Www, IS f/llrr:
(1) ILO NOprs Y w Lona of art"s:
14,S" or onNt Hall M M.OM pe w
tem gar "w leer 994se win y W IMW 41.. of
t ItMa rale eaalapM{r y t" aa09{Clop" w1 It
th.a gel
"fWLoat Set *some
sMt l" W. IWea: y"/es pay",
,b) 04 NSRG Ha"F"ooaeablem It w ee ran; ~ w OR"
gal w Ias0ol N R..Yt Hal M fr •sew r
WR. les tomo aYr Tae rem rel be N)wt 4 r
MwrPO fa.a r a0 M pad.:or=.-, w C1"% age
w Law of *nat Ado M r otHo'u wiry aM
4W wam . WIN aeut No Law gar N row
•reit Y Y rlarpe .ape YY" W latae. at
emaa&aw, ale a r. Wil-- (O/r/ AGIUS dope
•gall M
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It OIII 614410 a"Ywe gar W aMswa t gar
Owl we M retard, W Cgaw► Hall "w a I. w
d•M!r Aaoolpf Y am -w 0 11141ute r taw w .tad
tem lowlsar lewa61raa m d1pt11 Y she Yaw•
real((, ..!(mora wilk aM ewe Irltryty so.ofla
dtarl CEN{t 7r11�Y&. Y Mr7 w Urfa= "ellaet
Mlwttolon. -IFN 6""It to M NII M At.,
Wealla•s" M . 1446% . $M -Anon awls ow, no
tr ~•.•MI CIMS( Italian"At
ttl.f'tt" M Ms'.,
fsrtw "ORION Croass Irerrw NmsW ho.";
r
111 Im bore of emit Mail POW, . Mw is
AAL flor r w arlratlre ««ntaanw of Melt
,tar .f Omit tf w Into .f .I. -a W w a•.6
fosle-fa N "mv".
1
11 ft w d r, lirFw ArMM CeWt IrnlaMu Wll
M MJrs r resat" of r M9•lw .f Awal raostal. N W
... 1907 WI tafMer to fan W mrHwe .-IttuUM As tAs
boui 10,
V.ef19WA YtraMtttq s it" INIM ORN eM s ""=0 .lit
Its r,w, object w awl{srls Awe rfYtt" an«rrs• rllaas
fsE '"IF: W. V AY ••W W lana .t 4.w eM{t lrArw.a l•
sofa m eMeetele Arty, r rWw .t f•oal►I •mal l@ tan w
aMlaro wfufrw, r w Woo IN1 fur Nana. to
.dbinet, no ata .I w Irraw.rl. lstNr of .nat Malt N
w .a M FSNye N r Msnw Af oaawl a.•►-Yla so w L,na
IN W taeArer ls fan W wMfrw wl@taaly u w Nrl•e
IMA W trnf w w effort am Nwwas -ft. -ew later .f
•f rMa L, W44 4 0 ata MtCoWL, WW04
onf.,AAa. Wer 1.84. 7
leAteq«, r «
u flul•e nmr saw ally
wrtlrof.w. rrwrur w NON to w only .f
NaatW tar nllsf War tM Oa1W Tata« NrraaNf Cast•r
s1Yta /taw Mw y w ef/Ira w sow) fof mr Free Nttre
/AtaO r.re W Naw as afwil.
NI los •yll6rtw w nraww w l•arr .f . NM,-
alarrt CCaApt irtiwew M Fly Nr N Aram as data or
wrfna rfa� a.rw Ago"" Credit trr•aMa Mull N
N1a.H 04 Art m.fnAt I tr MW. 904 rl/ti
I W SUMS of •Were Aa.Mt Cult IrneMa.2 r "MMt:
nlaowrnwa d tM faN W .new• Mr11 Y wMN SA W N son
•M-ILoug.mwt d -s- Yaw• real,. W. Mat)wa u w 0r -r
Mwta "fwaNwaa, lM t{ra M nlwrarra /.e oLaos or rM
Maar.. 1b INwrw rave tf•a9t Irwwwt Mail l ONMr .f r•.
A�rrar" Nwete Arta, MSA w wt S.ISAI. tlsnow w rill
fsr•au ItY
as
awri tiara •r w/ nlrY•aawt .f Arno a•
4w
rtlwaa. W alma W Fy INrS 61 Is. aa.s m •e.Mt"FatowfCrM
ts
NI tar eaj� nil Y twum .n•N/rtw to 1W
fdfretlw Awa 'lte•1e• r r etAlwt owl N W
brave yotwa� .M l = .amt a L Wet w
flrtrme wlrr N Alain.
"Mal". I"1�s(l.�. (of
a W•Mitel
MNM1w1 Cm/s WfMra Maw 1wUre, .* tel no Uwf •t
Ml Arlt Cfr{e IraMtlra YfM1Y 16 IN pyre
rill p �t ar(eaMwr .'f •w (ate Ml1y Af w .lsW ►.1let
Mier .WA y 11► W AWA Ala. Nllry N waq W t.l1.
y Mrf•a. 0f U) w mini of W
tial u N •rll11N 10 aas•wslo6 w Ia-Yrt n4 IAN w VISUAL. 404 IMM
Aw.6 ffrarfa N N I,"".
fRiw U. fYiat INf /if AA .000MR. ts.fo U my -MSN W
Ar aMl{daarIlit 'NHar 1041 It•Y{" /nos' wtlr w fltll" Iul. M •tare.
1341 W YfltafW /W' war w Ino AaMtWi{M Itra w to •lane
Us. a-Arre fmatwf• KgL, w loaat•e Ata•wt. 119 NII.. 1111 Ilrt" IW,
Alam (lata 1") Ilia nett "@ base W w Soft" lel 6a.we Aedsra wt.
am L, ey -, MNMN« d- w wily Uf w far W .o «Wismar
MYI/ In w arawNls6 o.nas{Awao d w CMN b•-tra AM awn aaatY
ff161o1.W M w ItAotly fur •llwmst. N W nota 1041 sAr. osall N Mfa
Ino r art« lel IIYa" IW. faatarA W •wf wMwts arN.IMMA N ear
MSM wntt«1w /tr1 ell««No w w N,1" 1") Nwr wll a 4l@ N AM
ENnlw lose W Atatllat-1- I1tl/. Ur" W •nor SswrU r/NIW 9. tae
l Wfl�r YtMt. N u w Nrlw 1901 lnaa wll N .Is Ino M /arta.
IICt[6F N faXaflal Iia tAtlwN r min INI lea19 pmmwr T6 916
Imlp 1191 Illfl tURIRi IfItCT. IM fatwly a«•1Aaw wll N..n N,ws
•f IoW LNI I.aa Nf.we t w Nrta toil W tlrwws 1.11tr.
(tile . w YI04 ab IIt•e11tf es, Iww- Nowt YN raw 04 $.,1..tel Iwo tl.,• u ra w afar/! ally w 1•Tly q.s- ewfl-tow Art•,•
Ntl1MIN .. M, nl NIrnN1 •f W WAI.1 w w Nrlas lN1 !Vass IAM w
Orta IAM, W I4w a -w lanl Is•s1UM1f w9h w Nnw lel aAr !Armen
Y Cltlanr, f.A.. w• Tart, Na Tera, M IN wwrSNr. YIN ►lar.. A6.e
Itlar 'area 1901 /f•AU AAwr•1 •f w •wr-.f eVAs MnasNMr If y ..Ie
Iwwwt Narwa NN w CMY, Nt sof N•Kra w •sow- of -ata rfltA.Y/.
IM•Yr W sowbn41 a r ass lrAwl 1j AMM M/Wls m w ane. ltfl afa
IN7 IAtY raltYlsaa y sM Awa 'fit w nfNrael. boom tar w I.M.
fNum". to "Uslr:
(A) N• IMM/ lftq .Mil /rm•IFt w MFW lel Nts fa re,
nE a Ilse K tM r.rat.n moettW w e•wtw NtrlNl ar Itt.n.t
Nlferw (M as = IMs IAaa I•AAf. err W Mlw o[ tam Nn.
1M14Fas tray, NIA/ w daall adaa o= for w fNlaA lel
W /Mwr sat w ININ 1197 IMSA yet It) M Wl .WN sr N•W
r Iw�altue em -NW r !Salm Nil «wtlml IWrrt N,awta few
Isar •rrfta/•fM M r• f•eW I1f11 n NUesNI •t wONO f«M.NII
eMIILa/ M rr.6w Tall N Pas""Iflrlan NTrWe fm N6MIr,.
lMl 6ww Itoawrl was
•w fifrwWle r tM MfIN liar W ilMwr� aµ.NNIN sow. N.
1Mif/ MEtirlr oanllaf M M•lw w ►1Maeaet N UI now•.
ImeeleEt r taw I1fW lM/ waft few W 1rt/arI of or
et I srsi I= 1 t 1 «
r tY tett K nor .lHUfaas. UI nee W NeW lM) Mw Ir.r•r
Mil IrYt Y asw
SUM
/efs of W IoarMt ►lywY .wily Y. (I1
1� M W » aee"nM (tU Mlw. f
rata IM Yrs eWlw 4.111 fflMt N NWIfLL few no
tl.awr, w Iwl�ewr SWI a0wrr au a.oa nr no
�rK O. Wta IMf IIY Ww.f MI 1~) tW wreis
wrwaN , Its
/.=4 moa II11 aatw, N -se 0wM lass fur ayAlrr t" ow.1dad
. awnn0a t.
"Nlw ftltlta nava!, d Kiteearl fano w NeW INI YN lraror.
Llan d no letter at .*Nle fall@ below •r• y W am •4• by
raw'•. no .6114.290• As stow. w uwe N tar 4.,
M. -Costo truss! Wll be MrrttaN N W a•w
Cn10rl 6 of the tww• Asaral.
It) Is as are (a) the nwa" nWusman farm,•
NwrlW /s w /..fa{" awoYAp.N (t) t 1',1" t .r
NntrM, .1 IN w AWN at w oUs" MI" .6 n ass
l@oeoe At w s" mostly aor tt-wtor NIU, falls .lw •mos• y
UP a" •A.• y IIMtp -..9 (.1 the mW at the boar .f W
Uteof .f •,0491 falls lot" •r• y W W 'Y' y 116" of tam
1=44ll w Not (U malt tam w ItaeM rte- w N g
w awe w ata w "=;: lw••wwr . Nfwlt lm
W R401M ANMt N .1121 w tAfOew nrwwt Iltltltasai. era
NM- AN N NN ewe W waw" it" Nan to -mi Iraulwt•
rN•IW Y tors awY•arrll/ As fill eeatrA am lsrMMt
r rera.a wI•t
.6ltlly .t WKtlAMl@noVitaWwNewawMC""tt
"aft oewNw r: y N tw•/N
tew. Nltly fol"."
IAIw W. •r(al the mA" .t w Ira. Af w last.* of Affair
Olt alw . a.- as (C) w awl Of w fa•A/w YAM- CMII
t.swwN rfNLLN to IN "Pasho eNtN11w warm!.,, of (6) W
Irwwe of w Iwew Awsw- CtN11 taeFlwsse boAaw Irolr.e.
w Ce'op (►ell alma (U f.Frl{ IAA(w I.Nm AsANa w
atAllsa wfnAtW
Or .wa w "A ., "Milt" tw.raU as
NNeit ls qA AotYw sMew as "." ass "a., Y.NfM
!!!!Most, Awa aadetas u N MN owe W tAwA" rMAr la Also.
Wwllwwa w a lw1 •Awry wt. 046 Ill) rglNa -MMA
lrtaawAS Vilk most arrow rma1Y Cres [rtfltlrl •arm ar
rare tf Urt6 ..u,f.e.o.
111 Us•w F19lNtlt. w amu awIWU Ur "Norar
d1AW wee • t.:- AOrw halt Wtw Ay a raft.. by
w arnwt -t FAA of tofu"" tawrrwu .aalW U w 4we•.
/YfMra N Ftwe .law (tl st w af.aN..t -rNry=N
fol.
(11 CW w weal- r w IaMw• AeoFMwt 00411 N eeea (Ar
tawsaE-ra arssA•r nor Now .0 .mil N 114"t" W w
at«.er M/ltN as ftltUNl onto r M rwrt w Aly a•Nf•s
wmrt Cffatt IYenwaa. [! W r w twasse Ems vol, also ops, All Crura IwrArrt to ,NNW ls w WI•s
metra, rrrlsfe WrMfMar W n", -u at war Mw UW
wfaratl taYl r err w • frA rat Mat, 4LLAal.04 y Worr.a
N w rlsw ralwm AwlWt r.Nttlrr.
t. TYpIN am fw,iYTltr. [t w I 1 at Aly Kr Mnl lou.
awlaUrl ►Sty IraA w warwa sow w nota U an NSAUwfa. w .ew
-f 1. w a missw * ,-U l fur Kr Sonoma to ata o.awly none!
(-VASSAL, asM YW). sow nornatal@ leen NW MLI. t., Nares •f
WA ar•wW
.t, ASIA In Y PH VA
•nnowrnf-1 t N•el AI
..NMnm d ,N As to star llasase•n=assr.ttMe•wuMnWtMms
l.t.ast me
lata amt IY ffaa04ly [t now y ay "Usar9" war W6 Ira. •r It
now IYIYU 404 sa.N a= at w tW M.l•ra", y wrl Nl• ram .•a
Ur MW Aso 9wesoa ftM N omrwAr y rfateW As r !w..0wablo N
... "'A -a wt aaerf a.* boss far N,wst tint u w fel"
"art. wilt .ell Mt• N .w• mor w Nr.w -f Sri.[" Nis at ar
am 66 •mal. a1H tM11, alta W Nn •f trwf•o .wVIN Ia w war .f
w NSW in fur tlwr.r. u w Nn. Ills /I..% Aewe. ales Vlll
tW a., w awNU Nnt" •t /rlrlNl As w IeAMtalrn
(ill tow .utu rel no /aft" at•e• W rte. Ws ••7 NVa.•A •t
1tIMINI of or lr•f.t w • Net. lel I.At W maw rwa•sr. taw
...a.
awwwt u w wlW IUM• Mwwr,u, cow Ir • bow-. low
awerYi low wwrMra ata w l/an, tar/Natll. •mrd • f.rrt aaK"
-wN..st )url-unlw. w /a,ly ANN Malt. u w tW a fr•wr. ssna
n W to- '0 o Mr Itoawt. wly oil I.tMlrn W2 Ino lass- .sows Wa
oto Yor.la.r's f.IrMt IF N MtwM. snow IA1MrelMe •ill M wrlslN t.
Nrr•.
=to --'
W Sens@ IMI fur Ia.aNr N w .Wa at NwA a ..7w NM w
arty Atm "All IwslAa r w af/N 1193 f.M INwtt its !woos wlearl"
W Nissl@ st /tWlNl of W Mtarwt w w aelam NII Iafat wl.w M"
boss-1Ma11ne1y "Mata tow la11n.lrr•. W
No fano . nota .u•a Iarrwtl war Aar
(fill ftM. Nett loss sow Imawal *A4 u w MIM! l@ Woo NTa.aF
•! It/MINI
at or tM•Mi w w Nelw lNI faro. rsor wor".N fa W
.12111 at w Mlol•w of w11 P., M r r..aW- 29th W I.r of w
fait 1901 1•wM IaAa,A•N Nilly W, w Medea• -119\ NrnfNlM. (l) t w
oow .1 fr1./•IW Y u •tww far we W lwrNt, w fur 46Nmr Wll
sou w NIIN lN1 far Iroos.Yo Ht►M . atln6N -,m rytamtw ..•
rlss•IW y W •Ano/ [•µANN sows ,Yt4s fM W Nn.a IIN I.61 Assuan
of IrNf of a1r /owMF of lMNra smrese to w anon-l.r• of wa /.IM
lar) AMY •w/ 111 M w •w •! Nrafw/w r Is tta Nr ort w
asWIN1, ala. W 4tlsrr frit sat. w $-two INI Ina Irwro,'o sol u
fur as wUMN. Z :r, Aura far w NrW lN1 I.r• alwrlrr 4 w
fsa = of MN MW I")ffaaio. /N.a My 19tr1Ml a Ona, N w
Mason
M W awfwl. W Iql" t6ar A s sow MSMtaif nota waaw
leum a le bow, I no ►rtrl/d alM2y N w NEIN {HI fur twwet U w
war sow tar arta toss IW ta-afu ls . wM•6t• nor rtAlat non..
(1.1 IIN nota oaroa.a far w laflet lel IMwe IA.wer w w Nr
rl
lN1 [tan a furl M r f.ttw. MMa.ly ata •nor .Stow N W sort.
IWMI sow/ Iemrsla Awe oMll .a.q-.lr /ranaa U
IlyI"ms N W « 1901 fbewa N wlSI16:
lilt McMr~a� lwrtaN CaAaq
aim Tar. NA Tab low
aat•rWt IAwLL CowNl
Cltsfwa, N.A.
26 M TM TMIfwl
Flats - w
n
ANat-tat lafols9w Tara •r "bow,
Iunw• AwluabofaW.
tltTiw tt. Amcatm All, Im1197 Iart.
no m8cm All
ra.Ia04 ore elm •a1- •f w IAHN 1193 N•r it N .Nal@oe W saetrN
by we CNrq Its lotion:
A. All "INN Leonora Plus, N as a"Me .1 w Cagwy N wait/" by
.ww"eg "getat/M of W bean, r awe NlN -til .Seal Ill or • Perot"
of w leNrwI se w Nrlw'991 MM. Ne o r.oseW4 /drlN d ur frr w
aM .f l"" N tMnaI ""I N d.Peal{N uM W FarI . SIN .lr\14 FMN W
MI Iwr.Wlwty foo W Nlwog of newt !tett ww/y dw w w NII"
1. A w, It ww y • "Meolus"tr"e le"11CLY of w Sard sell
M &Wew sow w warn 1111011 Innn AM.r 4 w I1NLM fWA.
C• Al Arrt a
r dlwlllw y .sty""." "falwl" ft W Mn Wll
M MINI N INr"ttw nus aM ntttreas d Mand Me" N r.-IItN y
a.1..fewa ro"I.IW at as Moe'.
1. iM ewe o•••d$d4 to P F nt WY W e"or•1 NrNted .ltl
IWrut "Poll, o" W Pn)"I4M. Lao" 1st. N.M.reYe'- fa., la.
If flge Ul Nnaa". IrIgeW org.awe. PtaNas A t"1Aaga nINN u
I.Sre14 w n14y W Nrlw SNS Aagr- W all Star Stihl weer •.d noveN-
t"redN waseur to w elegem df tle I'll" loot Naito .as w
nitrealad t a. settled I"" taa N
ll U or Pee•l•l• tor.
t. A. Pn..dd tar4{y N"r osee14 .11 W "Malo .N Musser
Pr"""e tIf aNN .Wl M d.fMll.d MM w •letNo 1111 Coart-ILks ►W
e" M rainy Naas W aerltNrt.
.rleWM � MwN M W Fort" Ing CaMtwlir roma Wll M
MIIN y W dr►. r W user wn.M. "ley far tee
popm w se Mr.".w tr w rnU .t w Nna. let,
/arra lll/Ulty1 tMtrds: Idtridaa. rwr. Y /oteWo.oaat Sealy r .W
!far
key NIA Mt•r a dl. Y" .! to.-. of W Wis. lilt) I.Mm -1...
..r number a roil" M err ge r .og$oLLorl. a1 Pee.o.a..t w Falls.
eggs IIIIdA Y r dao..! ntrw.wksa l.lrr }naAo7 rfl•1.aIM t.107•ll
pr.r It epY" w Cor. tf y w Seamus w �" N w rmn Sign
NeSetralr aloe w W MNl/sty tK Ir an as .M1W r raw Pe1re of "
rolerrrwe M ollle asY..aw IMS a.Y7. Nall M dMalaw y w C1e.ly
lot. w MeleA tNf Iwty ht W •aw geld r Py r Ifsr/rl et. Irwlr.
if w. awl leading r r Nur'OSS Ilydo MIIN !safe Par.. 1 a welly
I W 1T No=on. ""awlsein w 1.11. 1111 createMtlr
"K W r W $.Yt/ewt • [erg Are CK W /e1g1NI Pr"l"d ""Is
aeatefM W rani M PNePN tlrY.
M
Soiled' wNad , aYyMCIry M N MOSamt .t MNK"l of r
stW 19111 false 0.11 r and_
9sly to mg.
rear rI rrLYNe fMtiNI. tad ,wt WN na Y •ser lWo NU
Air 7• N age IoW lN1 CwttMom ht NIN. L. w ""1se .!
as f•••er• rely yw as fddeas.d.Ilta d w C•OY h Wt-". K. age
:mous', MN•••y Ise eAeM/rMd, Y r"lrwl P/rlyd, ger w Imw.4
to MrKNw t-"Nwn tarty at Sells Ileo 1r tW/ N •ill almacoo
pae...ee eA.fN! ur&L.4 Mas Mara. All Iger Mrlwd el.r.frr .Mil N
a""trl Lae w Mtd$ 11113Mu
Mr" areN W Stan tan 1.trLoad se w
genal. If sty. Low as Nsrn 1991 Cr"les"r /W.
all aaPWLwN.a " "NIM"r to frr w Fargo. Ing C-srmau.. F.A
orll M M" .illy rat .W t.paskilMN It dtaeero.ge.t. tall Sava .e"
t. N nattiest" In cowl 1f w y y
PSFLre we, the err
M14tt" Io.%I bel Signal. dell . rMtrrer W b- wMN".d -A 4.
N{Nrn r dwtee .f [yin gleet .W" r 11M motto U. IM 9914. kill
wild I= Wll N fl *ft* nus wllgr r". :Mf;k rutwAur n f..tll
of w to" ylse rust*" W lrN elle.ttr W w .PN4rase .f "1
Aese"rr leen". Aq aeewrMr ►MANawe rat AON .Arias lM'ul.
fr"lst W eseslnrd entire N .a art Q/ Il►Ito. rolus w Sort.. 1101Mr I.oleeof "all Ilrdel" flPear.
t. VMS M"LWL" *All a" be orle"d altYw w gain winks
.varus .t W Nn.. 1991 Md Iota.
C fad IarW SNS AW two" NAU be r{ifW normally of .sty Ne
.. W Aa.tlw Mare
It a t w dNeelt W 1f 4 ra l$rr.. AN1w "tl.4Yy geradr r. GW
M flwestt/w In W
.teen{,
NWI r low N 1f 1d111as r Iraee If sedge'' "Is "a" d r of(et
s le ageu adds y W MM LOSS NN Irrroe. Us Iaraul
NtLN reel' M ."w •IMNr w yearn .f W Mer t"1 Ioaid Irw" ages w
s•rrn lel) lead toaster. rgly nus. WIl Pan r. give " Street Iwa""
qr root.
1. low"" Nnl w I.rrsw nN noPgea u r ty/y APIoa, w
N.YWr$ W r Nn" lel Idea teast.r. Mow ger roadelw PeraeeA err
W N"lwtr M N-w.tlyd" ban@.". w fyty Anse -IN-:
w S..Mlrn
Sad w NrM 199[ IW leallrlI rill r ►eel"" " M\f torr PNltsr.
I. tee Nt*r -sero errs .f w Neal lel I$N toomn tall "
telNtr def ay en•N N • ddlana.
sW lumrtr Coro"
9. Clever Seat Pr" r M
Nliwly Nw"l""w Nies, tell
Ill • rap of W 1f r aralaty ar"W ftorin rdP.rtd
of as 6NMr;
US) • "OF N as Cem".o N•erly leer•• bodies:
(lit) VM est imy l .1 4"9"0 " ata. *.H -r en It
M w o PoKA NN rad. lo. • cry M r NfNM1 ot"I ger
IeeAf "rM$rf rows. U w. "Nr{aYa is w sm. nob
..+ user" gel
INI de. rrW I.SIo. Ir rlleely b"e"er:
f1laY(afrrt~1f N claw van r es ".mist "st
to) ftrdsdwl N w flow van 1.�ruly N
"raw N w S"M-s ria. (raw" U 9.M of
N"rtl d.LLn) Sias w labor tu'mm'y r": rd
(1) farat�rtLow tlra ..soul- e1
w
Urwarlal- tLN r w [*/deem
Mreraa 4 wetly I1 the CMaiy W, won .994we1.. y w CMeltty
tyle•"
,be
M "" It .rlrlr .1 •NII M..e If Nga at W art.. INI
In)Nu Wll NNIMI y w Cloeltl14 IyI.NH. Of fill Nrtly la-
fMu to origin N W MN.
1eL'ROs H. Seek".Aytlly a as .Wady ar"lW Mw4
11111 WIu Yu�"Iw• NI�N to Mrfy Slot" w 44ufll M ft" W frYt�Y
NIawN gel dt at. Na1N{M N w{$► Wr r lewd.seel 1tn11usae4 N w
1.096. 1111 Sous S -g an.IeMIISN Mry1"N r•wt. "ftl.lta N /y It eM
U.lud tut...! Ager'" All angelus W .ltl "es el N W NtIN 1111 Iaro
,-"a w Prwlrtw of MIS. UI 11) .f W Cr. t N"tyI N .t N..
M,
l".0 NI.MI Wll N .read " W Naw• . Nage N w SNI t.rAa.
YI/wt. rY/a a ilea Nf W SIN NMN YNrI fell daily M YN N /y W
Meru W to W Ynrn turn of met. := NU Mltr .f w Cod. .l\r
"INee to w NEIN Irg Sova Y w las ma"td W W MP.IIo it
4 the sows of this W*P"h N Pn"t" tot r•NrM of .11 arflor age War
991/ IwKN N w :goo rte t ..I N w 1.11" LOSS ta./o. 1. .Mr
lo.NllreM W N agger eel" Y N/ M nI11nM y NU Me/w at w Cw.
It tlN ones If w t"Itlge.t N W C.e. .f r M.r1NIt" .f nvulloke
rAder w Cod. MHS /raiser .r reau" .W"Iw tlaa N Irwtdod .r IneIrN
I. Nll PGrWoh. NN Ne•NM .Mil r de.aaa u N Arta/ a Lba1PIr."
gash .ge."I•u .f ns.4llar.. r w NUN w/t"r1/. ages .Y
YF NIr"l
Mlwf MINI at, 9 to h. PIIng1110 t.rrrf Nati N done" N N fall W
lou.
Semoo to. ISLA N }Ill SOttl AOS/ 11111. 111. "at.. 1991 Nero w M
MN tt /loll. II PrIN" alta Seeger N W Nt. .11 to w t W .r end t W
Us lW, Stile
M 1""" y rAORUM nealrndo at W Mod.
IIMM t). IOSOUL CTi1fd. N Inl1 w W Mrtag l99S lead ttW.w
hllq 4 4 Nfrt, W Cagrrr a.•.Mg r Serb fir W rllsel14 PMI.L e
W w Sea4Mrse def- .t w an", y arin N/w"re .t Sous. tdaiY..rLI
M drew. " .."NI " w t.11e lly /" ULM:
a.
WlelIM.tWP -Y
l.trfw enter toot W terser .Itl apse.lr
N to nrlewy IyM"M by as N -l. iffy Saes lwr•f
frr still to 1W.
I• w NII" K letalrlee.. r.r"rw 4 M [ra1-e.d to w N.l" 10413Lee IrrN.f WtI w Nge1N{M aril M .arag.w Y riles. role" . Salta
•C Ie•N• .t erdlNl Nall raw Nr µsea y w Nn.. I"I NN Im ere' N rss
gs.rtW desroMt.atrrn Coon'.
Ilse }ra, OW Fast tells.
utMled: P'"Lee".
C. Sae earl" 199&m1 Itutus "I M aura . Meed M lnrede
genre► 994 MMIN/N.
O. UPN tee 04-•f • defeat Nltl ewe rOWrO w de99
delle 12
Ar tailrlr w ger N/a..0 rwr w Nrlw 1111 IYNar.
blur. too
login l"1 ern aUeltt W les denPrW .ager $Sall M .[N"dN r1t11 MNN
C4 W rolNttotlM Isar N W t•My gets"
by W ern aIl'wrof
L. IM Nr41 loo) IMM lager" Wll N It- Inge/- row If ay
r.A.oetlse. ttl.r coke" rY.uy $Lely told f.e-+el". l an Some, awe
aww t. LOMM MIYtMt seeking. rrrltsw W CNIe re.rl N W
b.da " M rtMewd.
e. TM Nal" lies ern trwnr Nall M Itwai ltayyy ger". If ret
N/rlle .1-11 eta "am " w torn W .q .tar Mfae11 corm u w
Cory .t w to" A" " 1 W r Pyty yea{ tl Mlty lrtai.,. M le" w
sort*$ let Iod lateral "oil. at w rfaWt w.. r w [.7114 AOM)
e. fes Nrlu Int ileo teorK Wll M /rwdw user . hal nmomnsN
.f 111 RN.Nl14o n"fled N w egeewlw .f ay deNl.as" N "to MdelNler
r .f .ey owl"tt" agrM"II of o "In-" tlu lorlNlM.
'Pt"'.lM elf .1"1.1Z
e14 Y W Nf4l lest 660 telee-e.. "Illy 4 to offset.
base .N• sely It W f$IlNny ". lMN ad Most dmf twee, rllrn ado "ft"
1111 IW grower WIL •Wrlr oOSrwl:
(1) ."ou
(t) Federal I.erliLN:
(11 .aero"" .f •weMSP .f • PrlMr.laYM lnlMrNl 1• .PM/fN
►ser" INYIno seta flash s.w'/M .n eeu y a fur fad
ANNA .11 l"w .P�uN W r4Ny •Mer am lade .t N. Y.IW
A" $ern .$rest U N..gdooly of www:
<ol W sY.ree. •tar..ee. N MItNtL.Y urn y w MrIW/w
e"I've rad .f M ileo W r 4"/11. b.*..1o, ado N W ""141
at w ►.dank ."lila ser: 'row r tl. learn
(f) NllPa.4M"'awl se loon /•narlrlra olo4lPal t•es IarMf. (.)
MSY "l Saila •AM• y Itaolyd W Mev C+rMrulr. " u.
agrllleMr f'IW1. K •Ar• .r '.AY• b,.=;-
err►•- tr•I�"rl -a-
too.. of les Nladda$M (•IYwr•.•1. W (►) P.rMIW ger N.
N1rlq N w NWINl N W "row. r r/N ell erw Soto
ode y MNU wad . f'i'rm -a N Mrl. lfwa ll "i llu
tmw" edNr4t" Of (Ful rlaY. Lllw4r of Sees w tall "Oh. I ai•
Mlllw M I Hideo rNM •A"• al' w w •Yo• .r •.AY• b
(a) over SISM. 1. N r. flgynW.
.. NN **= Nrard rfWlofw8-11. let Sustr
nMn d r trdlgeadoaia weWW
::7&m
.W nrdl ! r NHNllrlrMtlrwad M w MNN fad Np..e .1 w~tseH
ntwrd Areal SPY Steer Melrl"lr, ISI W ..INI OF W .... M .o.
-\wain /fY1s/Nr NM w ran rrYY1/ nad+utl Mlw N rgwtly •r
y, r W .ale raw r.
ISCttrl N. 1YlalAtq. i! N w glad age Carley Wli Mw Nld. 1st
tall res rel In..Nlw fel golrwl ef, r• MWINI. taiNtl.e W "use.
tt.•r, SO I.mp a M w of w I.rt"frr oar'" a--(. ser. -6 1. Wa
ewe. W /loye 1! W ltw r Ib nees•d Ploy U N..t of w Msu4tw
tier• of na Say or Of awa arta, at IM 8410 r7 M. e66ll M r LOW
to
•9309. hr aw'•aa Of eM 'madly —" the &""to at fe66r•l
FeMlat. 04 aria arlintam" of "Wil f•ll7 l'e'ad at It Iflatlerl are
1MNYs It Federal to m" ter Oce t•oala .1 •'t mor teaa"t4e at
IWI"Um" aalr My M •8660404 by low feed nM 4 tin MA •erfeelMt WA.,
wa too a Octal WA • dafaural 11 llfa•Mal• two ria • nr4t
tanlwtld a awl a•farr
f, lea a66 onto faos of eM Mleeard emea •f
Beta et.r a aeeoa "011, " as WW My 66. Oce frurlNl of W tMaaSt a
"tet atll M aetl4te" as par. at" W. 166 KtMltel, laterite W •Mira,
Isre'a"N1a fM drwiota " at" NMN. M wallWla. Noll be awlYrd
taw/ 66 wit a. .easy i• ft" Notion Noll be tars a a'to'm w
eq of Ge" ""So" try K a/ goatee tMMC fey f"WILM
Kia M aMsor Mfltal le •y wpt•alt tallow ■ dw-l" aro•Ulefo, at
a It•a1f as •{Matta at ae Yalq to 66eertaly waves, te alenla 4"
fes oa44e for only nowspol4.
saam tt..MIntATh. M anvinw. me 1•'904 "target wiflu/tri
of ara.aat atetsW of of a► nlelNtw •rWNfy Name of1•lrrl awm
IM t•re66 I. eal:4l .9 a• 4141.0
O•dee et f4 Of dao in etlri.aaa Kt"Lld •cont 8 aM IaM 1004 rtenrty
flailed y Seta YY
"Nfr Mrt" at OULe{r a mate": 'twit". Maear.
an he 41"f1Y Uri H trete" a"l Krit • Mlys l• aY amity d e"
try of a r••r"r 9. 166 rat• of yMt"t ya"n er 4 .a mere at etea
KWltetall'aaW aalef. air 04301 t. none{Ilwl on"" •t IM
r l••y, Ifa•ee aWef aisle' leo laaa.re air aaaf lana" t r44ae'r y
dayat aea•eetr, It ••y, -TOM arorl. •f 14'ay a•'a1ate" ft W
'am 8 a as .far Y Scr aaraeaa am awl at" fres ter fleya her ar
Nalu •a• P"""OPfflel9w ate for a ad"m awrul w4lYtta a
eaotl•aeea. •t W" Me """a at to ty4tead Oaeea of alt of ter heat
.refolmalWsedl•66 480 4096" b � a ta•M' SeM•e sa/11 ala rifNol f1 awfl4oaeel
Ilya W a""y Arita4rl fully I•No air
faafYOy aly04lar tees" arfaearf 4 aatatete Mawla.
ft � *A faceplate. 06 -tob W" O at te t r"t4o4a or
W0000d •tidal. em tY Mems ta" ly4aad aeras ff "1 •f elle 9440:
e UIW beet 1..1.aae Sal .a Mqo Fmfee"et" eNo tL r~f W'M al/wt
tLhy at
~M66laa rmee o lrte66a 1./eh a R"a"cal y a/Wr tW1wd a fear•:
on. air Oce It•s/t'a taweaan a..".. Ir., le No owa•awr of •IIMl at
tell M/endor a'~'rir d as taarr ff lea'elmWl allo lteMera alter
Nw11d, aaylef. • s of OwAk a• eoeeaae 101 Oce Y{4Nfed flelari ff •Ya leaam;
1WMlNoI•r aow66a ewe is" lame sf4dNa a asearewa '"Olt M at."i" ee
•q (31) dry, K4f 4 Oce M.U. "a.
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APPENDIX D
FORM OF OPINION OF BOND COUNSEL
APPENDIX D
Upon deHm7 of the Series 1996 Bonds In ddialdve form, Bryant, Miller and Olive, P.A., Bond
Counsel, proposes to moder its Blasi approving opinion in substantially the following form:
[Date of Delivery of Series 1996 Bonds]
Board of County Commissioners
Indian River County, Florida
Vero Beach, Florida
S
INDIAN RIVER COUNTY, FLORIDA
WATER AND SEWER REVENUE BONDS, SERIES 1996
Ladies and Gentlemen:
We have acted as bond counsel in connection with the issuance by Indian River County, Florida (the
"Issuer"), of its S Water and Sewer Revenue Bonds, Series 1996 (the "Series 19% Bonds"), pursuant
to the Constitution and laws of the State of Florida, Chapter 125, Florida Statutes, and other applicable
provisions of law and Resolution No. 93.80, adopted by the County Commission of the Issuer on April 13, 1993,
as amended and supplemented, including as supplemented by Resolution No. 96.30, adopted by the County
Commission of the Issuer on February 20, 1996, and as further supplemented (collectively, the "Resolution").
Any capitalized undefined terms used herein shall have the meaning set forth in the Resolution.
As to questions of fact material to our opinion, we have relied upon representations of the Issuer
contained in the Resolution and in the certified proceedings and other certifications of public officials furnished
to us, without undertaking to verify the same by independent investigation. We have not undertaken an
independent audit, examination, investigation or inspection of such matters and have relied solely on the facts:
estimates and circumstances described in such proceedings and certifications. We have assumed the genuineness
of signatures on all documents and instruments, the authenticity of documents submitted as originals and the
conformity to originals of documents submitted as copies.
We have not been engaged or undertaken to review the accuracy, completeness or sufficiency of any
offering material relating to the Series 1996 Bonds. This opinion should not be construed as offering material,
an offering circular, prospectus or official statement and is not intended in any way to be a disclosure statement
used in connection with the sale or delivery of the Series 1996 Bonds. Furthermore, we are not passing on the
accuracy or sufficiency of any CUSIP numbers appearing on the Series 1996 Bonds. In addition, we have not
been engaged to and, therefore, tWess no opinion as to compliance by the Issuer or the underwriter with any
federal or &tate statute, regulation or ruling with respect to the We and distribution of the Series 1996 Bonds.
In rendering this opinion, we have examined and relied solely upon, with your permission, the opinion
of Charles P. Vitunac, Esq., County Attorney, of even date herewith, as to certain matters, including but not
limited to, the due creation and valid existence of the Issuer, the due adoption of the Resolution, the due
authorization, execution and delivery of the Series 1996 Bonds and the compliance by the Issuer with all
conditions precedent to the issuance of the Series 1996 Bonds.
The Series 1996 Bonds are being issued on a parity with the Issuer's $47,190,000 Water and Sewer
Revenue Bonds, Series 1993A and $3,330,000 Water and Sewer Revenue Bonds, Series 1993B (collectively, the
"Series 1993 Boode), issued under the Resolution. Pursuant to the terms, conditions and limitations contained
in the Resolution, the Issuer has reserved the right to issue obligations in the future which shall have a lien on
the Pledged Funds equal to that of the Series 1993 Bonds and the Series 1996 Bonds.
The Series 1996 Bonds do not constitute a general obligation or indebtedness of the Issuer within the
meaning of any constitutional, statutory or other limitation of indebtedness and the holders thereof shall never
have the right to compel the exercise of any ad valorem taming power of the Issuer or taxation in any form of
any real or personal property for the payment of the principal of or interest on the Series 1996 Bonds.
The opinions set forth below are expressly limited to, and we opine only with respect to, the laws of the
State of Florida and the federal income tax laws of the United States of America.
Based on our examination, we are of the opinion, as of the date of delivery of and payment for the
Series 1996 Bonds, as follows:
1. The Resolution has been duly adopted by the Issuer and constitutes a valid and binding
obligation of the Issuer enforceable upon the Issuer in accordance with its terms.
2. The Series 1996 Bonds have been duly authorized, executed and delivered by the Issuer and are
valid and binding special obligations of the Issuer enforceable in accordance with their terms, payable solely from
the sources provided therefor in the Resolution.
3. The Internal Revenue Code of 1986, as amended (the "Code'), establishes certain requirements
which must be met subsequent to the issuance and delivery of the Series 1996 Bonds in order that interest on
the Series 1996 Bonds be and remain excluded from gross income for purposes of federal income taxation.
Non-compliance may cause interest on the Series 1996 Bonds to be included in federal gross income retroactive
to the date of issuance of the Series 1996 Bonds, regardless of the date on which such non-compliance occurs
or is ascertained. The Issuer has covenanted in the Resolution to comply with such requirements in order to
maintain the exclusion from federal gross income of the interest on the Series 1996 Bonds.
Subject to compliance by the Issuer with the aforementioned covenants, (a) interest on the Series 1996
Bonds is excluded from gross income for purposes of federal income taxation, and (b) interest on the Series 199E
Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on
individuals and corporations; however, with respect to corporations (as defined for federal income tax purposes),
such interest is taken into account in determining adjusted current earnings for the purpose of computing the
alternative minimum tax imposed on such corporations. We express no opinion regarding other federal tax
consequences arising with respect to the Series 1996 Bonds.
4. The Series 1996 Bonds and the income therefrom are exempt from taxation under the laws of
the State of Florida, except as to Florida estate taxes and taxes imposed by Chapter 220, Florida Statutes, as
amended, on interest, income or profits on debt obligations owned by corporations, banks and savings
associations.
It is to be understood that the rights of the owners of the Series 1996 Bonds and the enforceability
thereof may be subject to the exercise of judicial discretion in accordance with general principles of equity, to
the valid exercise of the sovereign police powers of the State of Florida and of the constitutional powers of the
United States of America and to bankruptcy, insolvency, reorganization, moratorium and other similar laws
affecting creditors' rights heretofore or hereafter enacted.
Our opinions expressed herein are predicated upon present law, facts and circumstances, and we assume
no affirmative obligation to update the opinions expressed herein if such laws, facts or circumstances change after
the date hereof.
Very truly yours,
BRYANT, MILLER AND OLIVE, PA.
Q2
APPENDIX E
SUMMARY OF CONTINUING DISCLOSURE CERTIFICATE
APPENDIX E
SUMMARY OF CON INMG DISCLOSURE CERTIFICATE
Purpose of the Disclosure Cerdlicate
This Disclosure Certificate is being executed and delivered by the Issuer for the benefit of the Holders
and Beneficial Owners of the Bonds and in order to assist the Participating Underwriters in complying with
S.E.C. Rule 15c2 -12(b)(5).
DMNtlona
In addition to the definitions act forth in the Resolution, which apply to any capitalized term used in the
Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the
following meanings:
"Annual Report' shall mean any Annual Report provided by the Issuer pursuant to, and as described
in, Sections 3 and 4 of this Disclosure Certificate.
"Beneficial Ownce shall mean any person which (a) has the power, directly or indirectly, to vote or
consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through
somioees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income
to PWPOWL
'Business Day shall mean any day other than a Saturday, Sunday or a day when banks in the City of
New York, New York, or in Indian River County, Florida, or in the cities in which the principal Offices of the
Issuer or the Paying Agent are required or authorized by law to be closed or on which the New York Stock
Exchange is closed
'Dissemination Agent" shall mean the Clerk of the Circuit Courtin and for Indian River County, Florida,
or any successor or alternate Dissemination Agent daignated in writing by the Issuer and which has filed with
the Issuer a written acceptaow of such designation.
"Listed Events' shall mean any of the events listed in Section S(a) of this Disclosure Certificate.
'National Repository shall mean any Nationally Recognized Municipal Securities Information Repository
for purposes of the Rule. The National Repositories currently approved by the Securities and Exchange
Commission are set forth in Exhibit B.
'Participating Underwriter" shall mean any of the origind underwriters of the Bonds required to comply
with the Rule in connection with offering of the Bouds.
'RepositW shall mean each National Repository and each State Repository.
"Rule' shall mean Rale 15c2 -12(b)(5) adopted by the United States Securities and Exchange Commission
under the Securities Excluoge Act of 1934, ss the same may be amended from time to time.
State' shall mean the State of Florida.
'State Repository shall mean any public or private repository or entity designated by the State as a state
repository for the purpose of the Rule and recognized as such by the Securities and Exchange Commission. As
E-1
of the date of this Certificate, there is no State Repository.
Provislosf of Annual Reports
(a) The Issuer shall, or shall cause the Dissemination Agent to, not later than June 1 of each year,
commencing June 1, 1997 with the report for the 19951996 Fiscal Yen, provide to each Repository an Annual
Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Report
may be submitted as a single document or as separate documents comprising a package, and may cross-reference
other information as provided in Section 4 of this Disclosure Certificate; provide that the audited financial
statements of the Issuer may be submitted separately from the balance of the Annual Report and later than the
date required above for the filing of the Annual Report if they are not available by that date. If the Issuer's
fiscal year changes, it shall give notice of such change in the same manner as for a listed Event under Section
S(c).
(b) Not later than fifteen (15) Business Days prior to said date, the Issuer shall provide the Annual
Report to the Dissemination Agent (if other than the Issuer). If the Issuer is unable to provide to the
Repositorie4 an Annual Report by the date required in subsection (a), the Issuer shall send a notice to each
Repository and the State Repository, if any, in substantially the form attached as Exhibit A.
(c) The Dissemination Agent shall:
(i) determine each year prior to the due for providing the Annual Report the name and
address of each National Repository and the State Repository, if any; and
(u) if the Dissemination Agent is other than the Issuer, file a report with the Issuer certifying
that the Annual Report has been provided pursuant to this Disclosure Certificate, stating the date it was
provided and listing all the Repositories to which it was provided.
Content of Antral Reports
The Issuer's Annual Report shall contain or include by reference the following:
1. The audited financial statements of the Issuer for the prior fiscal year, prepared in
accordance with generally accepted accounting principl a as promulgated to apply to governmental
entities from time to time by the Governmental Accounting Standards Board. If the Issuer's audited
financial statements are not available by the time the Annual Report is required to be filed pursuant
to Section 3(a), the Annual Report shall contain unaudited financial statements in a format similar to
the financial statements contained in the final Official Statement, and the audited financial statements
shall be filed in the same manner as the Annual Report when they become available.
z To the extent such information is not otherwise included as part of the annual audited
financial statements of the Issuer, updated information from that set forth in the Official Statement for
the Bonds under the headings 'Water and Sewer Cuutomere, 'Indian River County Department of
Utility Services High Volume Customers', *Rate Structure, and 'Summary of Historical Revenues of
the System'
Any or all of the hems listed above may be included by specific reference to other documents, including
official statements of debt issues of the Issuer or related public entities, which have been submitted to each of
the Repositories or the Securities and Exchange Commission, If the document included by reference is a final
official statement, it must be available from the Municipal SecurW a Rulemaking Board. The Issuer shall clearly
Wen* each such other document so included by reference.
E•2
Reporting of Significant Events
(a) Pursuant to the provisions of this Section S, the Issuer shall give, or cause to be given, notice
of the occurrence of any of the following events with reaped to the Bonds, if material:
1. principal and interest payment delinquencies.
2. non-paymeat related defaults.
3. modifications to rights of Bondholders.
4. optional, contingent or uaschedulod bond calla.
S. defeasances.
6. rating changes.
7. adverse tax opinions or events affecting the tax exempt status of the Bonds.
8. unscheduled draws on the debt service reserves reflecting financial difficulties.
9. unscheduled draws on the credit enhancements reflecting financial difficulties,
10. substitution of the credit or liquidity providers or their failure to perform.
11. release, substitution or sale of property securing repayment of the Bonds.
(b) Whenever the Issuer obtains knowledge of the occurrence of a Listed Event, the Issuer shall
as noon as possible determine if such event Would be material under applicable federal securities lawn.
(c) If the Iuuer determines that knowledge of the occurrence of a Listed Event would be material
under applicable federal securities laws, the
Repository, including the State Repository, Issuer shall promptly file a notice of such occurrence with each
if any. Notwithstanding the foregoing, notice of Listed Events
described in subsections (a)(4) and (5) need not be given under this subsection any earlier thea the notice (if
any) of the underlying event is given to Holders of affected Bonds pursuant to the Resolution.
Termination of Reporting oblipdm
The Issuer's obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior
redemption or payment in fall of all of the Bonds. if such termination occurs prior to We final maturity, of the
Bonds, the Issuer shall give notice of such termination in the same manner a for a Listed Event under Section
3(f).
Ansendmat; Wdvar
Notwithstanding any other provision of this Disclosure Certificate, the Issuer may amend this Disclosure
Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions
are satisfied:
(a) If the amendment or waiver relates to the provisions of Sections 3(a), 4, or S(s), it may
only be made in connection with a change in circumstances that arises from a change in legal
requirements, change in law, or change in the identity, ruuure or status of an obligated person with
E-3
respect to the Bonds, or the type of business conducted;
(b) The undertaking, as amended or taking into account such waiver, would, in the opinion
of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of
the original issuance of the Bonds, after taking into account any amendments or interpretations of the
Rule, as well as any change in circumstances; and
(c) The amendment or waiver either (i) is approved by the Holders of the Bonds in the
same manner as provided in the Resolution for amendments to the Resolution with the consent of
Holderx, or (u) does not, in the opinion of nationally recognized bond counsel, materially impair the
intereats of the Holders or Beneficial Owners of the Bonds.
In the event of any amendment or waiver of a provision of this Disclosure Certificate, the Issuer shall describe
such amendment in the next Annual Report, and shall include, as applicable, a narrative explanation of the
reason for the amendment or waiver and its impact on the type (or in the case of a change of accounting
principles, on the presentation) of financial information or operating data being presented by the Issuer. In
addition, if the amendment relates to the accounting principles to be followed in preparing financial statements,
(i) notice of such change shall be given in the same manner as for a Listed Event under Section S(f), and (ii)
the Annual Report for the year in which the change is made should 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.
Additional Information
Nothing in this Disclosure Certificate shall be deemed to prevent the Issuer from disseminating any
other information, using the means of dissemination set forth in this Disclosure Certificate or any other means
of communication, or including any other information in any Annual Report or notice of occurrence of a Listed
Event, in addition to that which is required by this Disclosure Certificate. If the Issuer chooses to include any
information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is
specifically required by this Disclosure Certificate, the Issuer shall have no obligation under this Certificate to
update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.
Default
In the event of a failure of the Issuer to comply with any provision of this Disclosure Certificate any
Holder or Beneficial Owner of the Bonds may take such actions as may be necesssry and appropriate, including
seeking mandate or specific performance by court order, to cause the Issuer to comply with its obligations under
this Disclosure Certificate. A default under this Disclosure Certificate ahall not be deemed an Event of Default
under the Resolution, and the sole remedy under this Disclosure Certificate in the event of any failure of the
Issuer to comply with this Disclosure Certificate shall be an action to compel performance.
This Disclosure Certificate shall inure solely to the benefit of the Issuer, the Dissemination Agent, the
Participating Underwriters and Holders and Beneficial Owners from time to time of the Bonds, and shall create
no rights in any other person or entity.
E4
APPENDIX F
SPECIMEN MUNICIPAL BOND INSURANCE POLICY
Financial Guaranty Insurance •
Company i
115 Broadway
N*rw• York. \l' 1000b
;312 313.3000
,800, 332.0001
A GE CROW COMM
Municipal Bond
New Issue Insurance Policy
lsauer: Policy Number:
Control Number:
Bonds: Premium:
Financial Guarantv Insurance Company"Financial Guarana a New 1' ck insu Ice c
in consideration of the payment of the premium and subject to the terms o his P •cv. here
unconditionally and irrevocably agrees to pay to State Street dT Com ny. K.A. r its
successor. as it, agent the -Fiscal Agent' for the bene ' dhol . dl ri of the p lcipa
and interest on the above-describrd debt obligati a -Bon ' w•hic I l com a for lit
but shall be unpaid by reason of Nonpay me , le Iss r.
Finanoal Gunrivav Mill Illake snt•I a1'llell . Ille Ist'al will 1111 H.( sol Final or interest
lwteniws Dur for Payment or tin &lsinewi D nex fldklr g tow ..1al l Financial Gilaranty shall
havr
Ilse fere a nNa hot ttn nqa. 1 sine it whwhichris t 11)icherver is ". Isfor el :twill but disburse
isunpaid by lr eBondholder
wln of
Nctllavt Iy I r t nor ul I receipt by F' for
form reasonabiv satisfactory a1 it. of
(i r f the ader' t uI rive Ila will of the principal (or interest Diorfor Payi ent and
Wml( cludi pp I • Its of ax+igtntwnt. that all of the BtNtdh order's rights to
yl t of linin al or int We for Payiem shall thermlom vest in Financtial Guaranty. UIMm
di . 'ae hilar 'ial C nn' shall lwoornr the ow'nrr of the Bond. algtlrerlant coupon or right to
pawl of prinvil or it . I on such Bond and shall hw fully subrogated 141 all of the &aldholder's rights
(Hearn ler. includi a Bondholder's right it; llavnavn dervf.
I'll Is lion•vanlellahlr for any reason. 11a• premium of thl, P4fi'% is not ref nidabk' for any reason.
i1 ung tow lmvliwnt of tlw Ihtals prior in their nlaturil%. I his P111N•v does not nlsllm against laws Of any
plelltly'111Pr11 lrrelllllllll w'lIN'll Illa1' at any tlnw he loolVallle With rPYfNY't (11 tllly' BiNNI.
AI used IN'n'iu. doe term "Boo(Ih ltlrf nN'ans. its IU a Pnriculur Wood. the lwrso n odwr that Ilw Issorr
who. at tlw tittle of Nonplynwln, is entitled under tlw terms of such Hrsal to lmvnwnl tleretlf. "Dur for
Pavmrnl" nwans. when referring it, the princilml of a BOIKI. Ihr• statetd nulutrity date thereof of the slate aI
whish the sane shall have loran duly calked for mandaaln sinking fund i dnupti ll wool dyes 11tt refer aI
any earlier date on whi'h layieut is fur by neural of call for rllemltiln (other than by nowt datoly sinking
fund redemplial). acceieratio whal ter adyancetnrm of maturity wNl 1lwans. when re(eril►g w intereau cot a
FGIC i. a rrai.ternl .wave mark to ed b% Fulaa•ial (.uarauly lniuratwe (aanpam under Iken.e frnan its parent rornpanr. RX Gorymraaal.
Form 9000 10/93 VW 1
of !
Financial Guaranty Insurance
Compare
115 Broadway r FGIC.
New York—NA,
.212 312-3000
800:352-0001
A GE Capital Company
IMunicipal Bond
New Issue Insurance Policy
Bond. the stated date for payment of interest. -•lonliaynwm" in respect of it Ihmd means the failure of the
Issuer to have provided sufficient funds to the Baying agent for paynwnt in full of all principal and interest
Due for Payment tin such Blind. ' :No6ce" means telephonic or telegraphic native. subseyuendy cnnfirrrted ii
writing. lir written notice by regisierwl or certified mail. from a Nindholder fir u pacing agent for the ntt}�
to Financial Guaranty. "Business Day" swans am da% oilier than it Saturday. Sunday or a day -t t
the Fiscal Agent is authorized by law to remain cltlwd.
In Witness Whereof. Financial Guaranty has caused this Policy to be affil
to be signed by its duly authorized officer in facsimile to become effective
Guaranty by virtue of the countersignature of its duly authorizeAvpresei
Aulhorized Reprewnialive
n. X.A., acknowledge, that it ha., agreed to perforni the duties of Fiscal
FGIIC 6 a registered ,eniv' alar u,ed In Fintow-nil t;Warant% In,urais-e Oinipaal uiairr la'etlse from its parent compare. F GI(. U;rlxwfajon.
Fiirm (011) ;10/93:
Pa1tr 2 iif 2
Financial Guaranty Insurance
Company
115 Broadway
New York. \-Y 1000u
212: 312.3000
800, 352.0001
A GE Caput( Company
Endorsement
To Financial Guaranty- Insurance Companv
Insurance Policy
Miley Number.
Control Number:
It is further undersurNl that the term " \onlwaynAm" in mlwci of a Bund inclu
o
or interest made lit a ii�ntdholdrr by ur ran lrhalf of dw isoer of each Biwa t
a haw
such K)ndhctldrr pursuant to dw (.niiwl Slow% WeAniptc% Crwlr by it Ira w in 1
akt
with a final. nonapp•alable (order (of a lrrttrt having usn( wient rt ion.
NOTHING HEREIN SKUL BE CONSTRUED TO VC . AL R. RE ' ,
A.MI
IN X\l' OTHER SECTION OF THE POLICY. L \ CO. TO P
ICl
TERMS OF THLI, E\DORSEME\T SI,PEf1 DE HE IM L.
FDIC.
M14
CO\
THE
In a'itnes. Whereof. Financial GAranty haNsr hi.. lar.ern its corporate
seal and to be signed by its du a horizedoffic r is a .inti to bey effective and binding upm►
FinancialGuaran�%turthth ountrr+ignanleo l.rlu urrtzedrrprrwentaticr.
Effective Date: Authorized Repremnlative
Acknowledged aw of the Elfeetive Date written slwrve:
6 5'�-
Authorized Officer
State Street Bank and Trust Company. N.A. as Fiscal Agent
FCIC is ■ n fistered service mark used bl Financial (:uarann lit .uratm•r (Arnliam undrr license (earn in parent crwnpany. FGN: (ngwrruinn.
Form E-0002 ;10/93 - Page 1 of 1 !
Financial Gusrum% Iniuranvw
Cunq�xm
Financial Guaranty Insurance Company
115 Broadway
New York, New York 10006
(212) 312-3000
(800) 352-0001
Municipal Bond Debt service
Reserve Fund Policy
Issuer:
Policy Number:
Control Number:
Bonds: Premium:
( J Bonds issued (under] (in
accordance with) [ ) Maximum Amount:
Resolution, as amended and,
supplemented adopted Termination Date:
Paying Agent:
Financial Guaranty Insurance Company ("Financial Guaranty"), a New
York stock insurance company, in consideration of the payment of the
premium and subject to the terms of this Policy, hereby
unconditionally and irrevocably agrees to pay the paying agent named
above or its successor, as paying agent for the Bonds (the "Paying
Agent"), for the benefit of Bondholders, that portion (not to exceed
the Maximum Amount set forth above) of the amount required to pay
principal and interest (but not any prepayment premium) on the Bonds
which shall become Due for Payment but shall be unpaid by reason of
Nonpayment by the Issuer. No payment shall be due hereunder for any
event of Nonpayment that occurs after the Termination Date set forth
above.
Financial Guaranty will make such payment to the Paying Agent on the
date such principal or interest becomes Due for Payment or on the
Business Day next following the day on which Financial Guaranty shall
have received Notice of Nonpayment, whichever is later. Upon such
disbursement, Financial Guaranty shall become entitled to
reimbursement therefor (together with interest thereon) all as
provided in the Debt Service Reserve Fund Policy Agreement between the
Issuer and Financial Guaranty dated as of the Effective Date of this
Policy. The Maximum Amount shall be automatically reinstated when and
to the extent that the Issuer repays amounts disbursed hereunder, but
shall not be reinstated to the extent of amounts received by Financial
Guaranty constituting interest on amounts disbursed to the Paying
Agent pursuant to this Policy. Financial Guaranty shall provide
Notice to the Paying Agent of any reinstatement of any portion of the
Maximum Amount within one Business Day of such reinstatement.
Form 9008
Page 1 of 2
Financial Guarani% hwiramw
Cmilwm
Financial Guaranty Insurance Company
115 Broadway
New York, New York 10006
(212) 312-3000
(800) 352-0001
Municipal Bond Debt Service
Reserve Fund Policy
This Policy is non -cancellable for any reason, including the failure
of the Issuer to reimburse Financial Guaranty for any payment made
hereunder.
As used herein, the term "Bondholder" means, as to a particular Bond,
the person other than the Issuer who, at the time of Nonpayment, is
entitled under the terms of such Bond to payment thereof. "Due for
Payment" means, when referring to the principal of a Bond, the stated
maturity date thereof or the date on which the same shall have been
duly called for mandatory sinking fund redemption and does not refer
to any earlier date on which payment is due by reason of call for
redemption (other than by mandatory sinking fund redemption),
acceleration or other advancement of maturity and means, when
referring to interest on a Bond, the stated date for payment of
interest. "Nonpayment" in respect of a Bond means the failure of the
Issuer to have provided sufficient funds to the Paying Agent for
payment in full of all principal and interest Due for Payment on such
Bond and includes any payment of principal or interest made to a
Bondholder by or on behalf of the issuer of such Bond which has been
recovered from such Bondholder pursuant to the United States
Bankruptcy Code by a trustee in bankruptcy in accordance with a final,
nonappealable order of a court having competent jurisdiction.
"Notice" means telephonic or telegraphic notice, subsequently
confirmed in writing, or written notice by registered or certified
mail, from the Paying Agent for the Bonds to Financial Guaranty or
from Financial Guaranty to the Paying Agent, as the case may be.
"Business Day" means any day other than a Saturday, Sunday or a day on
which the Paying Agent is authorized by law to remain closed.
In Witness Whereof, Financial Guaranty has caused this Policy to be
affixed with its corporate seal and to be signed by its duly
authorized officer in facsimile to become effective and binding upon
Financial Guaranty by virtue of the countersignature of its duly
authorized representative.
President Authorized Representative
Effective Date:
Form 9008
Page 2 of 2 111/941