Agenda 10/26/2010 Item #10CAgenda Item No. 10C
October 26, 2010
Page 1 of 156
EXECUTIVE SUMMARY
Recommendation to adopt a Bond Resolution authorizing the refunding of all of the
County's outstanding Capital Improvement Revenue Bonds, Series 2002, in the amount
not to exceed $27,300,000.
OBJECTIVE: Adoption of a Bond Resolution authorizing the refunding of all of the
County's outstanding Capital Improvement Revenue Bonds, Series 2002, in order to realize
a Net Present value savings (net of all issuance costs) estimated at 2 %, or approximately
$81,000 annually.
CONSIDERATIONS: On April 27, 2010, the Board of County Commissioners (Board)
approved the refunding of $59,893,000 of variable rate commercial paper. Since that time,
the Board's Finance Committee has been monitoring all outstanding debt for potential
refinancing. The Board's Debt Management Policy, as amended, originally adopted on
September 13, 2005 states the following:
Re undin s The County's staff and advisors will undertake periodic reviews of all
outstanding debt to determine refunding opportunities. Refunding will be
considered (within federal tax law constraints) if and when there is a net economic
benefit of the refunding or the refunding is essential in order to modernize
covenants essential to operations and management.
The refunding of the Series 2002 Bonds releases approximately $2,000,000 of cash reserved
pursuant to existing bond covenants. The new refunding Bonds will be issued without any
reserve fund or reserve insurance policy. The proposed bonds will be awarded pursuant to a
competitive bid, based upon the lowest True Interest Cost (TIC) to Collier County, with a
maximum allowable TIC of 4 %. All closing costs are included in the calculation of Net
Present Value savings, as estimated, and are shown as Exhibit A to this executive summary.
This refinancing as proposed contains no new borrowing amounts. Coverage on the Capital
Improvement Bond pledged to the half cent sales tax pledge is currently at 1.39 times and
the proposed transaction will not change this ratio.
Pending Board action on this refunding, bonds would be sold on or about November 10,
2010. Quick access to the market will allow the issue to be sold at the most favorable net
interest cost.
FINANCE COMMITTEE RECOMMENDATION: The Finance Committee on
September 17, 2010 unanimously endorsed the refunding in order to achieve annual debt
service rate savings over the remaining eleven (11) year life of the series 2002 bonds and
release cash used to fund the series 2002 bond debt service reserve.
LEGAL CONSIDERATIONS• This item has been reviewed by outside bond counsel and
is legally sufficient for Board action. — JAK
Agenda Item No. 10C
October 26, 2010
Page 2 of 156
FISCAL IMPACT: The refunding of the Series 2002 Bonds is estimated to generate a net
present value savings (net of all issuance costs) of 2% which is expected to translate into
approximately $891,500 over the remaining bond life. The refunding will also allow the
release of approximately $2,000,000 from the existing debt service reserves currently
restricted pursuant to bond covenants. Budget amendments will be needed to transfer these
funds (with interest) back to the appropriate Public Utilities funds from which they were
borrowed.
RECOMMENDATION: That the Board of County Commissioners approved the attach
Bond Resolution providing for the refunding of the Capital Improvement Revenue Bonds
Series 2002 and authorize all necessary budget amendments.
Prepared by: Mark Isackson, Corporate Finance and Management Services, County
Manager's Office
Agenda Item No. 10C
October 26, 2010
Page 3 of 156
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number: 10C
Item Summary: Recommendation to adopt a Bond Resolution authorizing the refunding of all of the Countys
outstanding Capital Improvement Revenue Bonds, Series 2002, in the amount not to exceed
$27,300,000. (Mark Isackson, Corporate Financial Planning and Management Services,
County Manager's Office)
Meeting Date: 10/26/2010 9:00:00 AM
Prepared By
Mark Isackson
Management /Budget Analyst, Senior
Date
Office of Management &
Budget
Office of Management & Budget
10/6/2010 8:40:02 AM
Approved By
Jeff Klatzkow
County Attorney
Date
10/6/2010 1:04 PM
Approved By
Susan Usher
Management/Budget Analyst, Senior
Date
Office of Management &
Budget
Office of Management & Budget
10/1912010 11:25 AM
Approved By
Mark Isackson
Management/Budget Analyst, Senior
Date
Office of Management &
Budget
Office of Management & Budget
10/19/2010 11:42 AM
Agenda Item No. 10C
October 26, 2010
Page 4 of 156
COLLIER COUNTY, FLORIDA
SPECIAL OBLIGATION REFUNDING REVENUE BONDS, SERIES 2010B
BOND RESOLUTION
ADOPTED OCTOBER 26, 2010
Agenda Item No. 10C
October 26, 2010
Page 5 of 156
TABLE OF CONTENTS
PAGE
ARTICLE I
GENERAL
SECTION 1.01.
DEFINITIONS....
SECTION 1.02.
..................................... ...............................
AUTHORITY FOR RESOLUTION """" '
SECTION 1.03.
................... ............................... 7
RESOLUTION TO CONSTITUTE CONTRACT
SECTION 1.04.
............................ 7
FINDINGS
SECTION 1.05.
...................
AUTHORIZATION OF REFUNDING OF REFUNDED
BONDS..........................................................
............................... 9
ARTICLE II
AUTHORIZATION, TERMS, SALE, EXECUTION AND REGISTRATION OF
BONDS
SECTION 2.01.
AUTHORIZATION AND DESCRIPTION OF BONDS
SECTION 2.02.
............... 10
APPLICATION OF BOND PROCEEDS
SECTION 2.03.
......... ............................... 11
EXECUTION OF BONDS
SECTION 2.04.
............................... ............................... 11
AUTHENTICATION
SECTION 2.05.
........................................ ............................... 12
TEMPORARY BONDS
SECTION 2.06.
.................................... ............................... 12
BONDS MUTILATED, DESTROYED, STOLEN OR LOST 12
SECTION 2.07.
.......
INTERCHANGEABILITY, NEGOTIABILITY AND
TRANSFER...................... .............. 13
SECTION 2.08.
...............................
FULL BOOK ENTRY FOR BONDS
SECTION 2.09.
............... ...............................
FORM OF BONDS
........................................... ............................... 15
ARTICLE III
NO REDEMPTION OF BONDS
SECTION 3.01.
NO REDEMPTION
.......................................... ............................... 23
ARTICLE IV
SECURITY; FUNDS; COVENANTS OF THE ISSUER
SECTION 4.01.
BONDS NOT TO BE INDEBTEDNESS OF ISSUER
SECTION 4.02.
................... 24
COVENANT TO BUDGET AND APPROPRIATE;
PAYMENT OF BONDS ............................. ............................... 24
SECTION 4.03.
REBATE FUND
SECTION 4.04.
................. ..............................: 25
ANTI- DILUTION
........ ............................... ............. 25
........................
ARTICLE V
COVENANTS
SECTION5.01.
GENERAL
SECTION 5.02.
........................................................ ............................... 27
ANNUAL BUDGET
SECTION 5.03.
......................................... ............................... 27
ANNUAL AUDIT
............................................. ............................... 27
Agenda Item No. 10C
October 26, 2010
Page 6 of 156
SECTION 5.04.
FEDERAL INCOME TAXATION COVENANTS ........................
27
ARTICLE VI
DEFAULTS AND REMEDIES
SECTION 6.01.
EVENTS OF DEFAULT .................................. ...............................
29
SECTION 6.02.
REMEDIES ......................................................... .............................29
SECTION 6.03.
DIRECTIONS TO TRUSTEE AS TO REMEDIAL
PROCEEDINGS .......................................... ...............................
30
SECTION 6.04.
REMEDIES CUMULATIVE ........................... ...............................
30
SECTION 6.05.
WAIVER OF DEFAULT .................................. ...............................
30
SECTION 6.06.
APPLICATION OF MONEYS AFTER DEFAULT .......................
30
ARTICLE VII
SUPPLEMENTAL RESOLUTIONS
SECTION 7.01.
SUPPLEMENTAL RESOLUTION WITHOUT
BONDHOLDERS' CONSENT ................... ...............................
32
SECTION 7.02.
SUPPLEMENTAL RESOLUTION WITH
BONDHOLDERS' CONSENT .................... ...............................
32
ARTICLE VIII
DEFEASANCE
SECTION 8.01. DEFEASANCE ................................................. ............................... 35
ARTICLE IX
PROVISIONS RELATING TO BONDS
SECTION 9.01. OFFICIAL NOTICE OF SALE ........................ ............................... 36
SECTION 9.02. PRELIMINARY OFFICIAL STATEMENT; OFFICIAL
STATEMENT.............................................. ............................... 36
SECTION 9.03. APPOINTMENT OF PAYING AGENT AND REGISTRAR........ 36
SECTION 9.04. SECONDARY MARKET DISCLOSURE ....... ......................... ...... 37
SECTION 9.04. AUTHORIZATION TO EXECUTE ESCROW AGREEMENT.... 37
ARTICLE X
MISCELLANEOUS
SECTION 10.01. SALE OF BONDS ............................................ ............................... 38
SECTION 10.02. SEVERABILITY OF INVALID PROVISIONS ............................. 38
SECTION 10.03. VALIDATION AUTHORIZED ....................... ............................... 38
SECTION 10.04. REPEAL OF INCONSISTENT RESOLUTIONS ........................... 38
SECTION 10.05. EFFECTIVE DATE .......................................... ............................... 39
EXHIBIT A - FORM OF OFFICIAL NOTICE OF SALE
EXHIBIT B - FORM OF CONTINUING DISCLOSURE CERTIFICATE
EXHIBIT C - FORM OF PRELIMINARY OFFICIAL STATEMENT
EXHIBIT D - FORM OF ESCROW DEPOSIT AGREEMENT
ii
Agenda Item No. 10C
October 26, 2010
Page 7 of 156
RESOLUTION 2010-
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA AUTHORIZING THE ISSUANCE
OF NOT EXCEEDING $27,300,000 IN AGGREGATE PRINCIPAL
AMOUNT OF COLLIER COUNTY, FLORIDA SPECIAL
OBLIGATION REFUNDING REVENUE BONDS, SERIES 2010B, TO
REFUND ALL OF THE COUNTY'S OUTSTANDING CAPITAL
IMPROVEMENT REVENUE BONDS, SERIES 2002; COVENANTING
TO BUDGET AND APPROPRIATE CERTAIN LEGALLY
AVAILABLE NON -AD VALOREM REVENUES TO PAY DEBT
SERVICE ON THE BONDS; PROVIDING FOR THE RIGHTS OF THE
HOLDERS OF THE BONDS; MAKING CERTAIN OTHER
COVENANTS AND AGREEMENTS IN CONNECTION WITH THE
BONDS; AUTHORIZING THE AWARDING OF SAID BONDS
PURSUANT TO A PUBLIC BID; DELEGATING CERTAIN
AUTHORITY TO THE CHAIRMAN FOR THE AWARD OF THE
BONDS, AND THE APPROVAL OF THE TERMS AND DETAILS OF
SAID BONDS; AUTHORIZING THE PUBLICATION OF A NOTICE
OF SALE FOR THE BONDS OR A SUMMARY THEREOF;
APPOINTING THE PAYING AGENT AND REGISTRAR FOR SAID
BONDS; AUTHORIZING THE DISTRIBUTION OF A PRELIMINARY
OFFICIAL STATEMENT AND THE EXECUTION AND DELIVERY
OF AN OFFICIAL STATEMENT WITH RESPECT TO SUCH BONDS;
AUTHORIZING THE EXECUTION AND DELIVERY OF AN
ESCROW DEPOSIT AGREEMENT AND THE APPOINTMENT OF AN
ESCROW AGENT THERETO; AUTHORIZING THE EXECUTION
AND DELIVERY OF A CONTINUING DISCLOSURE CERTIFICATE;
AND PROVIDING FOR AN EFFECTIVE DATE FOR THIS
RESOLUTION.
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA:
ARTICLE I
GENERAL
SECTION 1.01. DEFINITIONS. When used in this Resolution, the
following terms shall have the following meanings, unless the context clearly otherwise
requires:
Agenda Item No. 10C
October 26, 2010
Page 8 of 156
"Act" shall mean Chapter 125, Florida Statutes, and other applicable provisions
of law.
"Annual Audit" shall mean the annual audit prepared pursuant to the
requirements of Section 5.03 hereof.
"Annual Budget" shall mean the annual budget prepared pursuant to the
requirements of Section 5.02 hereof.
"Annual Debt Service" shall mean the aggregate amount of Debt Service on the
Bonds for each applicable Fiscal Year.
"Authorized Issuer Officer" shall mean the Chairman, the County Manager and
the Clerk and when used in reference to any act or document, also means any other
person authorized by resolution of the Issuer to perform such act or sign such document.
"Board" shall mean the Board of County Commissioners of Collier County,
Florida.
"Bond Counsel" shall mean Nabors, Giblin & Nickerson, P.A. or any other
attorney at law or firm of attorneys, of nationally recognized standing in matters
pertaining to the federal tax exemption of interest on obligations issued by states and
political subdivisions, and duly admitted to practice law before the highest court of any
state of the United States of America.
"Bondholder" or "Holder" or "holder" or any similar term, when used with
reference to a Bond or Bonds, shall mean any person who shall be the registered owner of
any Outstanding Bond or Bonds as provided in the registration books of the Issuer.
"Bonds" shall mean the Collier County, Florida Special Obligation Revenue
Bonds, Series 2010B.
"Capital Projects Funds" shall mean the "Capital Projects Funds" of the Issuer
as described and identified in the Annual Audit.
"Chairman" shall mean the Chairman of the Board or, in his or her absence or
unavailability, the Vice Chairman of the Board
"Clerk" shall mean the Clerk of the Circuit Court of Collier County, Florida and
Ex- Officio Clerk of the Board of County Commissioners of the Collier County, Florida
and such other person as may be duly authorized to act on her or his behalf, including any
Deputy Clerk.
"Code" shall mean the Internal Revenue Code of 1986, as amended, and the
regulations and rules thereunder in effect or proposed.
2
Agenda Item No. 10C
October 26, 2010
Page 9 of 156
"Counterparty" shall mean the entity entering into a Hedge Agreement with the
Issuer. Counterparty would also include any guarantor of such entity's obligations under
such Hedge Agreement.
"County Manager" shall mean the County Manager of the Issuer or, in his or her
absence or unavailability, any Assistant County Manager or a designee of the County
Manager.
"Debt" means at any date (without duplication) all of the following to the extent
that they are secured by or payable in whole or in part from any Non -Ad Valorem
Revenues (A) all obligations of the Issuer for borrowed money or evidenced by bonds,
debentures, notes or other similar instruments; (B) all obligations of the Issuer to pay the
deferred purchase price of property or services, except trade accounts payable under
normal trade terms and which arise in the ordinary course of business; (C) all obligations
of the Issuer as lessee under capitalized leases; and (D) all indebtedness of other Persons
to the extent guaranteed by, or secured by, Non -Ad Valorem Revenues of the Issuer;
provided, however, if with respect to any obligation contemplated in (A), (B), or (C)
above, the Issuer has covenanted to budget and appropriate sufficient Non -Ad Valorem
Revenues to satisfy such obligation but has not secured such obligation with a lien on or
pledge of any Non -Ad Valorem Revenues then, and with respect to any obligation
contemplated in (D) above, such obligation shall not be considered "Debt" for purposes
of this Resolution unless the Issuer has actually used Non -Ad Valorem Revenues to
satisfy such obligation during the immediately preceding Fiscal Year or reasonably
expects to use Non -Ad Valorem Revenues to satisfy such obligation in the current or
immediately succeeding Fiscal Year. After an obligation is considered "Debt" as a result
of the proviso set forth in the immediately preceding sentence, it shall continue to be
considered "Debt" until the Issuer has not used any Non -Ad Valorem Revenues to satisfy
such obligation for two consecutive Fiscal Years.
"Debt Service" shall mean, at any time, the aggregate amount in the then
applicable period of time of (1) interest required to be paid on the Outstanding Bonds
during such period of time, except to the extent that such interest is to be paid from Bond
proceeds for such purpose, and (2) principal of Outstanding Serial Bonds maturing in
such period of time. For purposes of this definition, (A) if the Bonds have 25% or more
of the aggregate principal amount coming due in any one year, Debt Service shall be
determined on the Bonds during such period of time as if the principal of and interest on
such Bonds were being paid from the date of incurrence thereof in substantially equal
annual amounts over a period of 25 years, and (B) with respect to debt service on any
Bonds which are subject to a Qualified Hedge Agreement, interest on such Bonds during
the term of such Qualified Hedge Agreement shall be deemed to be the Hedge Payments
coming due during such period of time.
"Escrow Agent" shall mean U.S. Bank National Association, Miami, Florida, its
successors and assigns.
3
Agenda Item No. 10C
October 26, 2010
Page 10 of 156
"Escrow Agreement" shall mean the Escrow Deposit Agreement to be executed
between the Issuer and the Escrow Agent in connection with the refunding of the
Refunded Bonds, the form of which is attached hereto as Exhibit D.
"Federal Securities" shall mean non - callable direct obligations of the United
States of America (including obligations issued or held in book -entry form on the books
of the Department of Treasury) or non - callable obligations the principal of and interest on
which are unconditionally guaranteed by the United States of America.
"Financial Advisor" shall mean Public Financial Management, Inc., Coral
Gables, Florida.
"Fiscal Year" shall mean the period commencing on October 1 of each year and
continuing through the next succeeding September 30, or such other period as may be
prescribed by law.
"Fitch" shall mean Fitch Ratings, and any assigns and successors thereto.
"General Fund" shall mean the "General Fund" of the Issuer as described and
identified in the Annual Audit.
"General Fund Revenues" shall mean total revenues of the Issuer derived from
any source whatsoever and that are allocated to and accounted for in the General Fund as
shown in the Annual Audit.
"Hedge Agreement" shall mean an agreement in writing between the Issuer and
the Counterparty pursuant to which (1) the Issuer agrees to pay to the Counterparty an
amount, either at one time or periodically, which may, but is not required to, be
determined by reference to the amount of interest (which may be at a fixed or variable
rate) payable on debt (or a notional amount) specified in such agreement during the
period specified in such agreement and (2) the Counterparty agrees to pay to the Issuer an
amount, either at one time or periodically, which may, but is not required to, be
determined by reference to the amount of interest (which may be at a fixed or variable
rate) payable on debt (or a notional amount) specified in such agreement during the
period specified in such agreement.
"Hedge Payments" shall mean any amounts payable by the Issuer on the debt or
the related notional amount under a Qualified Hedge Agreement; excluding, however,
any payments due as a penalty or by virtue of termination of a Qualified Hedge
Agreement or any obligation of the Issuer to provide collateral.
"Impact Fee Proceeds" shall mean the proceeds of all impact fees levied by the
Issuer that are allocated to and accounted for in the Capital Projects Funds as shown in
the Annual Audit.
0
Agenda Item No. 10C
October 26, 2010
Page 11 of 156
"Interest Date" or "interest payment date" shall be April 1 and October 1 of
each year.
"Issuer" or "County" shall mean Collier County, Florida.
"Maximum Annual Debt Service" shall mean the largest aggregate amount of
the Annual Debt Service coming due in any Fiscal Year in which Bonds are Outstanding.
thereto. " Moody' s" shall mean Moody's Investors Service, and any assigns and successors
"MSTD Revenues" shall mean all revenues of the Issuer derived from any source
whatsoever and that are allocated to and accounted for in the Unincorporated Area
Municipal Services Taxing District Fund as shown in the Annual Audit.
"Non -Ad Valorem Revenues" shall mean all General Fund Revenues and MSTD
Revenues, other than revenues generated from ad valorem taxation on real or personal
property, and all Impact Fee Proceeds, but only to the extent they are legally available to
make the payments required herein.
"Official Notice of Sale" shall meant the Official Notice of Sale as described in
Section 9.01 hereof, the form of which is attached hereto as Exhibit A.
"Outstanding," when used with reference to Bonds and as of any particular date,
shall describe all Bonds theretofore and thereupon being authenticated and delivered
except, (1) any Bond in lieu of which other Bond or Bonds have been issued under
Section 2.06 hereof to replace lost, mutilated or destroyed Bonds, (2) any Bond
surrendered by the Holder thereof in exchange for other Bond or Bonds under Sections
2.05 and 2.07 hereof, (3) Bonds deemed to have been paid pursuant to Section 8.01
hereof and (4) Bonds cancelled after purchase in the open market or because of payment
at maturity.
"Paying Agent" shall mean the paying agent appointed by the Issuer for the
Bonds and its successor or assigns, if any. The Paying Agent initially shall be U.S. Bank
National Association, Miami, Florida.
"Person" shall mean an individual, a corporation, a partnership, an association, a
joint stock company, a trust, any unincorporated organization, governmental entity or
other legal entity.
"Prerefunded Obligations" shall mean any bonds or other obligations of any
state of the United States of America or of any agency, instrumentality or local
governmental unit of any such state (1) which are (A) not callable prior to maturity or (B)
as to which irrevocable instructions have been given to the fiduciary for such bonds or
other obligations by the obligor to give due notice of redemption and to call such bonds
5
Agenda Item No. 10C
October 26, 2010
Page 12 of 156
for redemption on the date or dates specified in such instructions, (2) which are fully
secured as to principal, redemption premium, if any, and interest by a fund held by a
fiduciary consisting only of cash or Federal Securities, secured in substantially the
manner set forth in Section 8.01 hereof, which fund may be applied only to the payment
of such principal of, redemption premium, if any, and interest on such bonds or other
obligations on the maturity date or dates thereof or the specified redemption date or dates
pursuant to such irrevocable instructions, as the case may be, (3) as to which the principal
of and interest on the Federal Securities, which have been deposited in such fund along
with any cash on deposit in such fund are sufficient, as verified by an independent
certified public accountant or other expert in such matters, to pay principal of,
redemption premium, if any, and interest on the bonds or other obligations on the
maturity date or dates thereof or on the redemption date or dates specified in the
irrevocable instructions referred to in clause (1) above and are not available to satisfy any
other claims, including those against the fiduciary holding the same, and (4) which are
rated in the highest rating category (without regard to gradations, such as " +" or " -" or " 1,
2 or 3" of such categories) of one of the Rating Agencies.
"Program" shall mean the pooled commercial paper loan program of the Florida
Local Government Finance Commission which is administered by the Florida
Association of Counties.
"Qualified Hedge Agreement" shall mean a Hedge Agreement with respect to
which the Issuer has received written notice from at least two of the Rating Agencies that
the rating of the Counterparty is not less than "A."
hereof.
"Rating Agencies" means Fitch, Moody's and Standard & Poor's.
"Rebate Fund" shall mean the Rebate Fund established pursuant to Section 4.03
"Refunded Bonds" shall mean all of the Series 2002 Bonds.
"Refunding Securities" shall mean Federal Securities and Prerefunded
Obligations.
"Registrar" shall mean the bond registrar appointed by the Issuer for the Bonds
and its successor or assigns, if any. The Registrar initially shall be U.S. Bank National
Association, Miami, Florida.
"Resolution" shall mean this Resolution, as the same may from time to time be
amended, modified or supplemented by Supplemental Resolution.
"Serial Bonds" shall mean all of the Bonds other than the Term Bonds.
0
Agenda Item No. 10C
October 26, 2010
Page 13 of 156
"Series 2002 Bonds" shall mean the outstanding Collier County, Florida Capital
Improvement Revenue Bonds, Series 2002.
"Standard and Poor's" or "S &P" shall mean Standard and Poor's Ratings
Services, and any assigns and successors thereto.
"State" shall mean the State of Florida.
"Supplemental Resolution" shall mean any resolution of the Issuer amending or
supplementing this Resolution enacted and becoming effective in accordance with the
terms of Sections 7.01, 7.02 and 7.03 hereof.
hereby. "Term Bonds" shall mean those Bonds which shall be designated as Term Bonds
"Unincorporated Area Municipal Services Taxing District Fund" shall mean
the "Unincorporated Area Municipal Services Taxing District Fund" of the "Special
Revenue Funds" as such Funds are described and identified in the Annual Audit.
The terms "herein," "hereunder," "hereby," "hereto," "hereof," and any similar
terms, shall refer to this Resolution; the term "heretofore" shall mean before the date of
adoption of this Resolution; and the term "hereafter" shall mean after the date of adoption
of this Resolution.
Words importing the masculine gender include every other gender.
Words importing the singular number include the plural number, and vice versa.
SECTION 1.02. AUTHORITY FOR RESOLUTION. This Resolution is
adopted pursuant to the provisions of the Act. The Issuer has ascertained and hereby
determined that adoption of this Resolution is necessary to carry out the powers, purposes
and duties expressly provided in the Act, that each and every matter and thing as to which
provision is made herein is necessary in order to carry out and effectuate the purposes of
the Issuer in accordance with the Act and to carry out and effectuate the plan and purpose
of the Act, and that the powers of the Issuer herein exercised are in each case exercised in
accordance with the provisions of the Act and in furtherance of the purposes of the Issuer.
SECTION 1.03. RESOLUTION TO CONSTITUTE CONTRACT. In
consideration of the purchase and acceptance of any or all of the Bonds by those who
shall hold the same from time to time, the provisions of this Resolution shall be a part of
the contract of the Issuer with the Holders of the Bonds, and shall be deemed to be and
shall constitute a contract between the Issuer, the Holders from time to time of the Bonds.
The pledge made in the Resolution and the provisions, covenants and agreements herein
set forth to be performed by or on behalf of the Issuer shall be for the equal benefit,
protection and security of the Holders of any and all of said Bonds but only in accordance
7
Agenda Item No. 10C
October 26, 2010
Page 14 of 156
with the terms hereof. All of the Bonds, regardless of the time or times of their issuance
or maturity, shall be of equal rank without preference, priority or distinction of any of the
Bonds over any other thereof except as expressly provided in or pursuant to this
Resolution.
SECTION 1.04. FINDINGS. It is hereby ascertained, determined and
declared that:
(A) The Issuer has previously issued the Series 2002 Bonds to finance and
refinance various capital improvements within the Issuer.
(B) The Issuer hereby deems it to be in its best interests to refund all of the
outstanding Series 2002 Bonds.
(C) In order to refund the Refunded Bonds the Issuer deems it to be in its best
interest to issue the Bonds.
(D) A portion of the proceeds derived from the sale of the Series 2010B Bonds,
together with other legally available moneys of the Issuer, shall be deposited to a special
escrow deposit trust fund to purchase Federal Securities which shall be sufficient,
together with the investment earnings therefrom and a cash deposit, if any, to pay the
Refunded Bonds as the same become due and payable or are redeemed prior to maturity,
all as provided herein and in the Escrow Agreement.
(E) Upon the advice of the Financial Advisor and in light of the current interest
rate market, the Issuer deems it to be in its best interest to now issue the Bonds for the
purpose of refunding the Refunded Bonds, as determined pursuant to the provisions
herein.
(F) In accordance with Section 218.385, Florida Statutes, and pursuant to this
Resolution, the Bonds shall be advertised for competitive bids pursuant to the Official
Notice of Sale, the form of which is attached hereto as Exhibit A, or a summary thereof.
(G) Pursuant to the Official Notice of Sale, competitive bids for the purchase of
the Bonds received in accordance with the Official Notice of Sale on or prior to
10:00 a.m., Eastern standard time, on November 10, 2010, or such other date or time as is
determined by the Chairman in accordance with the terms and provisions hereof and of
the Official Notice of Sale, shall be publicly opened and announced.
(H) Due to the present volatility and uncertainty of the market for tax - exempt
obligations such as the Bonds, it is desirable for the Issuer to be able to advertise and
award the Bonds at the most advantageous time and date instead of restricting the sale
and award to the date of a particular meeting of the Board; and, accordingly, the Issuer
hereby determines to delegate the advertising and awarding of the Bonds to the Chairman
within the parameters described herein.
Agenda Item No. 10C
October 26, 2010
Page 15 of 156
(I) It is necessary and appropriate that the Issuer determine certain parameters
for the terms and details of the Bonds and to delegate certain authority to the Chairman
for the award of the Bonds and the approval of the terms of the Bonds in accordance with
the provisions hereof and of the Official Notice of Sale.
(J) In the event Bond Counsel shall determine that the Bonds have not been
awarded competitively in accordance with the provisions of Section 218.385, Florida
Statutes, the Issuer shall adopt such resolutions and make such findings as shall be
necessary to authorize and ratify a negotiated sale of the Bonds in accordance with said
Section 218.385.
(K) The Bonds shall be secured solely by a covenant of the Issuer, subject to
certain conditions set forth herein, to budget and appropriate from Non -Ad Valorem
Revenues amounts sufficient to pay the principal of and interest on the Bonds, when due.
(L) The principal of and interest on the Bonds to be issued pursuant to this
Resolution, and all other payments provided for in this Resolution will be paid solely
from Non -Ad Valorem Revenues in accordance with the terms hereof; and the ad
valorem taxing power of the Issuer will never be necessary or authorized to pay the
principal of and interest on the Bonds to be issued pursuant to this Resolution, or to make
any other payments provided for in this Resolution, and the Bonds shall not constitute a
lien upon any property whatsoever of or in the Issuer.
SECTION 1.05. AUTHORIZATION OF REFUNDING OF REFUNDED
BONDS. The refunding of the Refunded Bonds in order to achieve debt service savings
is hereby authorized.
E
Agenda Item No. 10C
October 26, 2010
Page 16 of 156
ARTICLE II
AUTHORIZATION, TERMS, SALE, EXECUTION AND REGISTRATION OF
BONDS
SECTION 2.01. AUTHORIZATION AND DESCRIPTION OF BONDS.
(A) This Resolution creates an issue of Bonds of the Issuer to be designated as "Collier
County, Florida Special Obligation Refunding Revenue Bonds, Series 2010B," issued in
the aggregate principal amount of not exceeding $27,300,000. The Chairman is
authorized to modify the series designation of such Bonds, in his discretion, prior to the
issuance thereof. The Chairman shall determine the aggregate principal amount of the
Bonds prior to their issuance in accordance with the Official Notice of Sale provided such
principal amount does not exceed $27,300,000. The Bonds are issued for the principal
purposes of refunding the Refunded Bonds and paying certain costs of issuance incurred
with respect to the Bonds.
The Bonds shall be dated as of their date of delivery (or such other date as the
Chairman may determine), shall be numbered consecutively from one upward in order of
maturity preceded by the letter "R ", shall be issued in the form of fully registered Bonds
in denominations of $5,000 and any integral multiple thereof, shall be initially in book -
entry only form of registration, shall bear interest from their date of delivery (or such
other date as the Chairman may determine), payable semi - annually on each Interest Date,
commencing on April 1, 2011 (or such other date as the Chairman may determine). The
Bonds shall bear interest computed on the basis of a 360 -day year consisting of twelve
30 -day months.
The Bonds shall bear interest at such rates and yields, shall mature on October 1 of
each of the years and in the principal amounts corresponding to such years, and, except as
otherwise provided herein, shall have such redemption provisions, all as determined by
the Chairman, upon the advice of the Financial Advisor, subject to the conditions set
forth in this Section 2.01. The final maturity of the Bonds shall not be later than
October 1, 2021. All of the terms of the Bonds will be included in a certificate to be
executed by the Chairman or other Authorized Issuer Officer following the award of the
Bonds (the "Award Certificate ") and shall be set forth in the final Official Statement, as
described herein.
The principal of the Bonds are payable upon presentation and surrender of the
Bonds at the office of the Paying Agent. Interest payable on any Bond on any Interest
Date will be paid by check or draft of the Paying Agent to the Holder in whose name
such Bond shall be registered at the close of business on the date which shall be the
fifteenth day (whether or not a business day) of the calendar month next preceding such
Interest Date, or at the request of such Holder, by bank wire transfer for the account of
such Holder. All payments of principal of and interest on the Bonds shall be payable in
any coin or currency of the United States of America which at the time of payment is
legal tender for the payment of public and private debts.
10
Agenda Item No. 10C
October 26, 2010
Page 17 of 156
(B) The Chairman, on behalf of the Issuer and only in accordance with the
terms hereof and of the Official Notice of Sale, shall award the Bonds to the underwriter
or underwriters that submit a bid proposal which complies in all respects with this
Resolution and the Official Notice of Sale and offers to purchase the Bonds at the lowest
true interest cost to the Issuer, as calculated by the Issuer's Financial Advisor in
accordance with the terms and provisions of the Official Notice of Sale; provided,
however, the Bonds shall not be awarded to any bidder unless the true interest cost set
forth in the winning bid (as calculated by the Financial Advisor) is equal to or less than
4.00 %. In accordance with the provisions of the Official Notice of Sale, the Chairman
may, in his or her sole discretion, reject any and all bids.
(C) The Bonds shall not be subject to redemption prior to their respective
maturities.
SECTION 2.02. APPLICATION OF BOND PROCEEDS. The proceeds
derived from the sale of the Bonds, including premium, if any, shall be applied by the
Issuer as follows:
(A) A sufficient amount of Bond proceeds, together with other legally available
moneys of the Issuer, shall be deposited irrevocably in trust in an escrow deposit trust
fund or funds established under the terms and provisions of the Escrow Agreement and,
other than a cash deposit, shall be invested in Federal Securities in the manner set forth in
the Escrow Agreement, which investments shall mature at such times and in such
amounts as shall be sufficient, together with such cash deposit, to pay the principal of,
premium, if applicable, and interest on the Refunded Bonds as the same mature or are
redeemed on their respective redemption dates.
(B) The balance of the Bond proceeds shall be used to pay costs and expenses
relating to the issuance of the Bonds.
SECTION 2.03. EXECUTION OF BONDS. The Bonds shall be executed in
the name of the Issuer with the manual or facsimile signature of the Chairman and the
official seal of the Issuer shall be imprinted thereon, attested with the manual or facsimile
signature of the Clerk. In case any one or more of the officers who shall have signed or
sealed any of the Bonds or whose facsimile signature shall appear thereon shall cease to
be such officer of the Issuer before the Bonds so signed and sealed have been actually
sold and delivered such Bonds may nevertheless be sold and delivered as herein provided
and may be issued as if the person who signed or sealed such Bonds had not ceased to
hold such office. Any Bond may be signed and sealed on behalf of the Issuer by such
person who at the actual time of the execution of such Bond shall hold the proper office
of the Issuer, although at the date of such Bond such person may not have held such
office or may not have been so authorized. The Issuer may adopt and use for such
purposes the facsimile signatures of any such persons who shall have held such offices at
any time after the date of the adoption of this Resolution, notwithstanding that either or
11
Agenda Item No. 10C
October 26, 2010
Page 18 of 156
both shall have ceased to hold such office at the time the Bonds shall be actually sold and
delivered.
SECTION 2.04. AUTHENTICATION. No Bond shall be secured hereunder
or entitled to the benefit hereof or shall be valid or obligatory for any purpose unless
there shall be manually endorsed on such Bond a certificate of authentication by the
Registrar or such other entity as may be approved by the Issuer for such purpose. Such
certificate on any Bond shall be conclusive evidence that such Bond has been duly
authenticated and delivered under this Resolution. The form of such certificate shall be
substantially in the form provided in Section 2.09 hereof.
SECTION 2.05. TEMPORARY BONDS. Until definitive Bonds are
prepared, the Issuer may execute, in the same manner as is provided in Section 2.03, and
deliver, upon authentication by the Registrar pursuant to Section 2.04 hereof, in lieu of
definitive Bonds, but subject to the same provisions, limitations and conditions as the
definitive Bonds, except as to the denominations thereof, one or more temporary Bonds
substantially of the tenor of the definitive Bonds in lieu of which such temporary Bond or
Bonds are issued, in denominations authorized by the Issuer by subsequent resolution and
with such omissions, insertions and variations as may be appropriate to temporary Bonds.
The Issuer, at its own expense, shall prepare and execute definitive Bonds, which shall be
authenticated by the Registrar. Upon the surrender of such temporary Bonds for
exchange, the Registrar, without charge to the Holder thereof, shall deliver in exchange
therefor definitive Bonds, of the same aggregate principal amount and maturity as the
temporary Bonds surrendered. Until so exchanged, the temporary Bonds shall in all
respects be entitled to the same benefits and security as definitive Bonds issued pursuant
to this Resolution. All temporary Bonds surrendered in exchange for another temporary
Bond or Bonds or for a definitive Bond or Bonds shall be forthwith cancelled by the
Registrar.
SECTION 2.06. BONDS MUTILATED, DESTROYED, STOLEN OR
LOST. In case any Bond shall become mutilated, or be destroyed, stolen or lost, the
Issuer may, in its discretion, issue and deliver, and the Registrar shall authenticate, a new
Bond of like tenor as the Bond so mutilated, destroyed, stolen or lost, in exchange and
substitution for such mutilated Bond upon surrender and cancellation of such mutilated
Bond or in lieu of and substitution for the Bond destroyed, stolen or lost, and upon the
Holder furnishing the Issuer and the Registrar proof of his ownership thereof and
satisfactory indemnity and complying with such other reasonable regulations and
conditions as the Issuer or the Registrar may prescribe and paying such expenses as the
Issuer and the Registrar may incur. All Bonds so surrendered shall be cancelled by the
Registrar. If any of the Bonds shall have matured or be about to mature, instead of
issuing a substitute Bond, the Issuer may pay the same or cause the Bond to be paid, upon
being indemnified as aforesaid, and if such Bonds be lost, stolen or destroyed, without
surrender thereof.
12
Agenda Item No. 10C
October 26, 2010
Page 19 of 156
Any such duplicate Bonds issued pursuant to this Section 2.06 shall constitute
original, additional contractual obligations on the part of the Issuer whether or not the
lost, stolen or destroyed Bond be at any time found by anyone, and such duplicate Bond
shall be entitled to equal and proportionate benefits and rights to the same extent as all
other Bonds issued hereunder.
SECTION 2.07. INTERCHANGEABILITY, NEGOTIABILITY AND
TRANSFER. Bonds, upon surrender thereof at the office of the Registrar with a written
instrument of transfer satisfactory to the Registrar, duly executed by the Holder thereof or
his attorney duly authorized in writing, may, at the option of the Holder thereof, be
exchanged for an equal aggregate principal amount of registered Bonds of the same
maturity of any other authorized denominations.
The Bonds issued under this Resolution shall be and have all the qualities and
incidents of negotiable instruments under the law merchant and the Uniform Commercial
Code of the State, subject to the provisions for registration and transfer contained in this
Resolution and in the Bonds. So long as any of the Bonds shall remain Outstanding, the
Issuer shall maintain and keep, at the office of the Registrar, books for the registration
and transfer of the Bonds.
Each Bond shall be transferable only upon the books of the Issuer, at the office of
the Registrar, under such reasonable regulations as the Issuer may prescribe, by the
Holder thereof in person or by his attorney duly authorized in writing upon surrender
thereof together with a written instrument of transfer satisfactory to the Registrar duly
executed and guaranteed by the Holder or his duly authorized attorney. Upon the transfer
of any such Bond, the Issuer shall issue, and cause to be authenticated, in the name of the
transferee a new Bond or Bonds of the same aggregate principal amount and maturity as
the surrendered Bond. The Issuer, the Registrar and any Paying Agent or fiduciary of the
Issuer may deem and treat the Person in whose name any Outstanding Bond shall be
registered upon the books of the Issuer as the absolute owner of such Bond, whether such
Bond shall be overdue or not, for the purpose of receiving payment of, or on account of,
the principal and interest on such Bond and for all other purposes, and all such payments
so made to any such Holder or upon his order shall be valid and effectual to satisfy and
discharge the liability upon such Bond to the extent of the sum or sums so paid and
neither the Issuer nor the Registrar nor any Paying Agent or other fiduciary of the Issuer
shall be affected by any notice to the contrary.
The Registrar, in any case where it is not also the Paying Agent in respect to any
Bonds, forthwith (A) following the fifteenth (15th) day prior to an Interest Date for the
Bonds; and (B) at any other time as reasonably requested by the Paying Agent of such
Bonds, shall certify and furnish to such Paying Agent the names, addresses and holdings
of Bondholders and any other relevant information reflected in the registration books.
Any Paying Agent of any fully registered Bond shall effect payment of interest on such
Bonds by mailing a check to the Holder entitled thereto or may, in lieu thereof, upon the
13
Agenda Item No. 10C
October 26, 2010
Page 20 of 156
request and expense of such Holder, transmit such payment by bank wire transfer for the
account of such Holder.
In all cases in which the privilege of exchanging Bonds or transferring Bonds is
exercised, the Issuer shall execute and deliver Bonds and the Registrar shall authenticate
such Bonds in accordance with the provisions of this Resolution. Execution of Bonds by
the Chairman and Clerk for purposes of exchanging, replacing or transferring Bonds may
occur at the time of the original delivery of the Bonds. All Bonds surrendered in any such
exchanges or transfers shall be held by the Registrar in safekeeping until directed by the
Issuer to be cancelled by the Registrar. For every such exchange or transfer of Bonds, the
Issuer or the Registrar may make a charge sufficient to reimburse it for any tax, fee,
expense or other governmental charge required to be paid with respect to such exchange
or transfer. The Issuer and the Registrar shall not be obligated to make any such
exchange or transfer of Bonds during the fifteen (15) days next preceding an Interest Date
on the Bonds.
SECTION 2.08. FULL BOOK ENTRY FOR BONDS. Notwithstanding the
provisions set forth in Section 2.07 hereof, the Bonds shall be initially issued in the form
of a separate single certificated fully registered bond certificate for each of the maturities
of the Bonds. Upon initial issuance, the ownership of each such Bond shall be registered
in the registration books kept by the Registrar in the name of Cede & Co., as nominee of
The Depository Trust Company ( "DTC "). All of the Outstanding Bonds shall be
registered in the registration books kept by the Registrar in the name of Cede & Co., as
nominee of DTC. As long as the Bonds shall be registered in the name of Cede & Co., all
payments of principal on the Bonds shall be made by the Paying Agent by check or draft
or by bank wire transfer to Cede & Co., as Holder of the Bonds, upon presentation of the
Bonds to be paid, to the Paying Agent.
With respect to the Bonds registered in the registration books kept by the Registrar
in the name of Cede & Co., as nominee of DTC, the Issuer, the Registrar and the Paying
Agent shall have no responsibility or obligation to any direct or indirect participant in the
DTC book -entry program (the "Participants "). Without limiting the immediately
preceding sentence, the Issuer, the Registrar and the Paying Agent shall have no
responsibility or obligation with respect to (A) the accuracy of the records of DTC, Cede
& Co. or any Participant with respect to any ownership interest on the Bonds, (B) the
delivery to any Participant or any other Person other than a Bondholder, as shown in the
registration books kept by the Registrar, of any notice with respect to the Bonds, or
(C) the payment to any Participant or any other Person, other than a Bondholder, as
shown in the registration books kept by the Registrar, of any amount with respect to
principal of or interest on the Bonds. The Issuer, the Registrar and the Paying Agent shall
treat and consider the Person in whose name each Bond is registered in the registration
books kept by the Registrar as the Holder and absolute owner of such Bond for the
purpose of payment of principal and interest with respect to such Bond, for the purpose of
14
Agenda Item No. 10C
October 26, 2010
Page 21 of 156
registering transfers with respect to such Bond, and for all other purposes whatsoever.
The Paying Agent shall pay all principal of and interest on the Bonds only to or upon the
order of the respective Holders, as shown in the registration books kept by the Registrar,
or their respective attorneys duly authorized in writing, as provided herein and all such
payments shall be valid and effective to fully satisfy and discharge the Issuer's
obligations with respect to payment of principal and interest on the Bonds to the extent of
the sum or sums so paid. No Person other than a Holder, as shown in the registration
books kept by the Registrar, shall receive a certificated Bond evidencing the obligation of
the Issuer to make payments of principal and interest pursuant to the provisions of this
Resolution. Upon delivery by DTC to the Issuer of written notice to the effect that DTC
has determined to substitute a new nominee in place of Cede & Co., and the words "Cede
& Co." shall refer to such new nominee of DTC; and upon receipt of such notice, the
Issuer shall promptly deliver a copy of the same to the Registrar and the Paying Agent.
Upon (A) receipt by the Issuer of written notice from DTC (i) to the effect that a
continuation of the requirement that all of the Outstanding Bonds be registered in the
registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC,
is not in the best interest of the beneficial owners of the Bonds or (ii) to the effect that
DTC is unable or unwilling to discharge its responsibilities and no substitute depository
willing to undertake the functions of DTC hereunder can be found which is willing and
able to undertake such functions upon reasonable and customary terms, or (B)
determination by the Issuer that such book -entry only system is burdensome or
undesirable to the Issuer and compliance by the Issuer of all applicable policies and
procedures of DTC regarding discontinuance of the book entry registration system, the
Bonds shall no longer be restricted to being registered in the registration books kept by
the Registrar in the name of Cede & Co., as nominee of DTC, but may be registered in
whatever name or names Holders shall designate, in accordance with the provisions of
this Resolution. In such event, the Issuer shall issue, and the Registrar shall authenticate,
transfer and exchange the Bonds of like principal amount and maturity, in denominations
of $5,000 or any integral multiple thereof to the Holders thereof. The foregoing
notwithstanding, until such time as participation in the book -entry only system is
discontinued, the provisions set forth in the Blanket Letter of Representations previously
executed by the Issuer and delivered to DTC shall apply to the payment of principal of
and interest on the Bonds.
SECTION 2.09. FORM OF BONDS. The text of the Bonds shall be in
substantially the following form with such omissions, insertions and variations as may be
necessary and/or desirable and approved by the Chairman prior to the issuance thereof
(which necessity and /or desirability and approval shall be presumed by such officer's
execution of the Bonds and the Issuer's delivery of the Bonds to the purchaser or
purchasers thereof):
15
Agenda Item No. 10C
October 26, 2010
Page 22 of 156
No. R- $
UNITED STATES OF AMERICA
STATE OF FLORIDA
COLLIER COUNTY, FLORIDA
SPECIAL OBLIGATION REFUNDING REVENUE BONDS,
SERIES 2010B
Interest Maturity Date of
Rate Date Original Issue CUSIP Number
Registered Holder:
Principal Amount:
KNOW ALL MEN BY THESE PRESENTS, that Collier County, Florida, a
political subdivision of the State of Florida (the "Issuer "), for value received, hereby
promises to pay, solely from the Non -Ad Valorem Revenues hereinafter described, to the
Registered Holder identified above, or registered assigns as hereinafter provided, on the
Maturity Date identified above, the Principal Amount identified above and to pay interest
on such Principal Amount from the Date of Original Issue identified above or from the
most recent interest payment date to which interest has been paid at the Interest Rate per
annum identified above on April 1 and October 1 of each year commencing April 1, 2011
until such Principal Amount shall have been paid.
Such Principal Amount and interest and the premium, if any, on this Bond are
payable in any coin or currency of the United States of America which, on the respective
dates of payment thereof, shall be legal tender for the payment of public and private
debts. Such Principal Amount on this Bond is payable at the designated corporate trust
office of Florida, as . Paying Agent.
Payment of each installment of interest shall be made to the person in whose name this
Bond shall be registered on the registration books of the Issuer maintained by
, , Florida, as Registrar, at the close of
business on the date which shall be the fifteenth day (whether or not a business day) next
preceding each interest payment date and shall be paid by a check of such Paying Agent
mailed to such Registered Holder at the address appearing on such registration books or,
at the request of such Registered Holder, by bank wire transfer for the account of such
16
Agenda Item No. 10C
October 26, 2010
Page 23 of 156
Holder. Interest shall be calculated on the basis of a 360 -day year of twelve 30 -day
months.
This Bond is one of an authorized issue of Bonds in the aggregate principal
amount of $ (the "Bonds ") of like date, tenor and effect, except as to
maturity date, interest rate, denomination and number issued under the authority of and in
full compliance with the Constitution and laws of the State of Florida, particularly
Chapter 125, Florida Statutes, and other applicable provisions of law (collectively, the
"Act "), and a resolution duly adopted by the Board of County Commissioners of the
Issuer, on October 26, 2010, as the same may be amended and supplemented (the
"Resolution "), and is subject to all the terms and conditions of the Resolution.
Capitalized undefined terms used herein shall have the meanings ascribed thereto in the
Resolution. The Bonds are being issued to refund certain outstanding indebtedness of the
Issuer.
Pursuant to the Resolution, the Issuer has covenanted to appropriate in its annual
budget, by amendment, if necessary, such amounts of Non -Ad Valorem Revenues which
are not otherwise pledged, restricted or encumbered, as shall be necessary to pay the
principal of and interest on the Bonds when due and all required rebate payments. Such
covenant to appropriate Non -Ad Valorem Revenues is not a pledge by the Issuer of such
Non -Ad Valorem Revenues and is subject in all respects to the payment of obligations
secured by a pledge of such Non -Ad Valorem Revenues heretofore or hereafter entered
into (including the payment of debt service on bonds or other debt instruments) and also
to the payment of services and programs which are for essential public purposes affecting
the health, safety and welfare of the inhabitants of the Issuer or which are legally
mandated by applicable law.
IT IS EXPRESSLY AGREED BY THE REGISTERED HOLDER OF THIS
BOND THAT THE FULL FAITH AND CREDIT OF THE ISSUER, THE STATE OF
FLORIDA, OR ANY POLITICAL SUBDIVISION OR AGENCY THEREOF, ARE
NOT PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY,
AND INTEREST ON THIS BOND AND THAT SUCH HOLDER SHALL NEVER
HAVE THE RIGHT TO REQUIRE OR COMPEL THE EXERCISE OF ANY TAXING
POWER OF THE ISSUER, THE STATE OF FLORIDA, OR ANY POLITICAL
SUBDIVISION OR AGENCY THEREOF, TO THE PAYMENT OF SUCH
PRINCIPAL, PREMIUM, IF ANY, AND INTEREST. THIS BOND AND THE
OBLIGATION EVIDENCED HEREBY SHALL NOT CONSTITUTE A LIEN UPON
ANY PROPERTY OF THE ISSUER, BUT SHALL BE PAYABLE SOLELY FROM
THE AMOUNTS BUDGETED AND APPROPRIATED BY THE ISSUER AS
DESCRIBED ABOVE AND AS PROVIDED IN THE RESOLUTION.
The Issuer has established a book -entry system of registration for the Bonds.
Except as specifically provided otherwise in the Resolution, an agent will hold this Bond
on behalf of the beneficial owner thereof. By acceptance of a confirmation of purchase,
17
Agenda Item No. 10C
October 26, 2010
Page 24 of 156
delivery or transfer, the beneficial owner of this Bond shall be deemed to have agreed to
such arrangement.
This Bond is transferable in accordance with the terms of the Resolution only
upon the books of the Issuer kept for that purpose at the designated corporate trust office
of the Registrar by the Registered Holder hereof in person or by his attorney duly
authorized in writing, upon the surrender of this Bond together with a written instrument
of transfer satisfactory to the Registrar duly executed by the Registered Holder or his
attorney duly authorized in writing, and thereupon a new Bond or Bonds in the same
aggregate principal amount shall be issued to the transferee in exchange therefor, and
upon the payment of the charges, if any, therein prescribed. The Bonds are issuable in
the form of fully registered Bonds in the denomination of $5,000 and any integral
multiple thereof, not exceeding the aggregate principal amount of the Bonds. The Issuer,
the Registrar and any Paying Agent may treat the Registered Holder of this Bond as the
absolute owner hereof for all purposes, whether or not this Bond shall be overdue, and
shall not be affected by any notice to the contrary. The Issuer shall not be obligated to
make any exchange or transfer of the Bonds during the fifteen (15) days next preceding
an interest payment date.
Reference to the Resolution and any and all resolutions supplemental thereto and
modifications and amendments thereof and to the Act is made for a description of the
pledge and covenants securing this Bond, the nature, manner and extent of enforcement
of such pledge and covenants, and the rights, duties, immunities and obligations of the
Issuer.
It is hereby certified and recited that all acts, conditions and things required to
exist, to happen and to be performed precedent to and in the issuance of this Bond, exist,
have happened and have been performed, in regular and due form and time as required by
the laws and Constitution of the State of Florida applicable thereto, and that the issuance
of the Bonds does not violate any constitutional or statutory limitations or provisions.
Neither the Chairman nor the members of the Board of County Commissioners of
the Issuer nor any person executing this Bond shall be liable personally hereon or be
subject to any personal liability or accountability by reason of the issuance hereof.
This Bond shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been signed by the Registrar.
IN
Agenda Item No. 10C
October 26, 2010
Page 25 of 156
IN WITNESS WHEREOF, Collier County, Florida has issued this Bond and has
caused the same to be executed by the manual or facsimile signature of the Chairman of
the Board of County Commissioners and attested by the manual or facsimile signature of
the Clerk of the Circuit Court for Collier County, Florida and Ex- Officio Clerk of the
Board of County Commissioners, and its official seal or a facsimile thereof to be affixed
or reproduced hereon, all Date of Original Issue.
(SEAL)
ATTESTED:
COLLIER COUNTY, FLORIDA
Chairman, Board of County Commissioners
Clerk, Circuit Court for Collier County,
Florida and Ex- Officio Clerk of the Board
of County Commissioners
19
Agenda Item No. 10C
October 26, 2010
Page 26 of 156
CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds of the Issue described in the within - mentioned
Resolution.
DATE OF AUTHENTICATION:
Registrar
Authorized Officer
20
Agenda Item No. 10C
October 26, 2010
Page 27 of 156
Unless this certificate is presented by an authorized representative of The
Depository Trust Company to the Issuer or its agent for registration of transfer, exchange
or payment, and any certificate issued is registered in the name of Cede & Co. or such
other name as requested by the authorized representative of The Depository Trust
Company and any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL since the registered owner hereof, Cede & Co., has an interest herein.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto
Insert Social Security or Other Identifying Number of Assignee
(Name and Address of Assignee)
the within Bond and does hereby irrevocably constitute and appoint
, as attorneys to register the transfer of the said Bond on
the books kept for registration thereof with full power of substitution in the premises.
Dated:
Signature guaranteed:
NOTICE: Signature must be
guaranteed by an institution which is a
participant in the Securities Transfer
Agent Medallion Program (STAMP) or
similar program.
21
NOTICE: The signature to this
assignment must correspond with the
name of the Registered Holder as it
appears upon the face of the within Bond
in every particular, without alteration or
enlargement or any change whatever and
the Social Security or other identifying
number of such assignee must be
supplied.
Agenda Item No. 10C
October 26, 2010
Page 28 of 156
The following abbreviations, when used in the inscription on the face of the within
Bond, shall be construed as though they were written out in full according to applicable
laws or regulations:
TEN COM -- as tenants in common
TEN ENT -- as tenants by the entireties
JT TEN -- as joint tenants with right of
survivorship and not as tenants
in common
UNIF TRANS MIN ACT --
(Cust.)
Custodian for
under Uniform Transfers to Minors Act of
(State)
Additional abbreviations may also be used though not in list above.
22
Agenda Item No. 10C
October 26, 2010
Page 29 of 156
ARTICLE III
NO REDEMPTION OF BONDS
SECTION 3.01. NO REDEMPTION. The Bonds shall not be subject to such
optional or mandatory sinking fund redemption.
[Remainder of page intentionally left blank]
23
Agenda Item No. 10C
October 26, 2010
Page 30 of 156
ARTICLE IV
SECURITY; FUNDS; COVENANTS OF THE ISSUER
SECTION 4.01. BONDS NOT TO BE INDEBTEDNESS OF ISSUER. The
Bonds shall not be or constitute general obligations or indebtedness of the Issuer as
"bonds" within the meaning of any constitutional or statutory provision, but shall be
special obligations of the Issuer, payable solely from amounts budgeted and appropriated
by the Issuer from Non -Ad Valorem Revenues in accordance with Section 4.02 hereof.
No Holder of any Bond shall ever have the right to compel the exercise of any ad
valorem taxing power to pay such Bond, or be entitled to payment of such Bond from any
moneys of the Issuer except from the Non -Ad Valorem Revenues in the manner and to
the extent provided herein.
SECTION 4.02. COVENANT TO BUDGET AND APPROPRIATE;
PAYMENT OF BONDS. The Issuer covenants and agrees to appropriate in its annual
budget, by amendment, if necessary, from Non -Ad Valorem Revenues amounts sufficient
to (A) pay principal of and interest on the Bonds when due, and (B) pay all required
deposits to the Rebate Fund pursuant to Section 4.03 hereof. Such covenant and
agreement on the part of the Issuer to budget and appropriate such amounts of Non -Ad
Valorem Revenues shall be cumulative to the extent not paid, and shall continue until
such Non -Ad Valorem Revenues or other legally available funds in amounts sufficient to
make all such required payments shall have been budgeted, appropriated and actually
paid. Notwithstanding the foregoing covenant of the Issuer, the Issuer does not covenant
to maintain any services or programs, now provided or maintained by the Issuer, which
generate Non -Ad Valorem Revenues.
Such covenant to budget and appropriate does not create any lien upon or pledge
of such Non -Ad Valorem Revenues, nor does it preclude the Issuer from pledging in the
future its Non -Ad Valorem Revenues, nor does it require the Issuer to levy and collect
any particular Non -Ad Valorem Revenues, nor does it give the Bondholders a prior claim
on the Non -Ad Valorem Revenues as opposed to claims of general creditors of the Issuer.
Such covenant to appropriate Non -Ad Valorem Revenues is subject in all respects to the
payment of obligations secured by a pledge of such Non -Ad Valorem Revenues
heretofore or hereafter entered into (including the payment of debt service on bonds and
other debt instruments). However, the covenant to budget and appropriate for the
purposes and in the manner stated herein shall have the effect of making available for the
payment of the Bonds, in the manner described herein, Non -Ad Valorem Revenues and
placing on the Issuer a positive duty to appropriate and budget, by amendment, if
necessary, amounts sufficient to meet its obligations hereunder; subject, however, in all
respects to the restrictions of Section 129.07, Florida Statutes, which generally provide
that the governing body of each county may only make appropriations for each fiscal year
which, in any one year, shall not exceed the amount to be received from taxation or other
revenue sources; and subject, further, to the payment of services and programs which are
24
Agenda Item No. 10C
October 26, 2010
Page 31 of 156
for essential public purposes affecting the health, safety and welfare of the inhabitants of
the Issuer or which are legally mandated by applicable law.
The Issuer covenants and agrees to transfer to the Paying Agent for the Bonds,
solely from funds budgeted and appropriated as described in this Section 4.02, at least
one business day prior to the date designated for payment of any principal of or interest
on the Bonds, sufficient moneys to pay such principal or interest. The Registrar and
Paying Agent shall utilize such moneys for payment of the principal and interest on the
Bonds when due.
SECTION 4.03. REBATE FUND. The Issuer covenants and agrees to
establish a special fund to be known as the "Collier County, Florida Special Obligation
Refunding Revenue Bonds, Series 2010B Rebate Fund," which shall be held in trust by
the Issuer and used solely to make required rebates to the United States (except to the
extent the same may be used to pay debt service on the Bonds) and the Bondholders shall
have no right to have the same applied for debt service on the Bonds. The Issuer agrees
to undertake all actions required of it in its arbitrage certificate relating to the Bonds,
including, but not limited to:
(A) making a determination in accordance with the Code of the amount
required to be deposited in the Rebate Fund;
Fund; (B) depositing the amount determined in clause (A) above into the Rebate
(C) paying on the dates and in the manner required by the Code to the United
States Treasury from the Rebate Fund and any other legally available moneys of the
Issuer such amounts as shall be required by the Code to be rebated to the United States
Treasury; and
(D) keeping such records of the determinations made pursuant to this Section
4.03 as shall be required by the Code, as well as evidence of the fair market value of any
investments purchased with proceeds of the Bonds.
The provisions of the above - described arbitrage certificates may be amended
without the consent of any Holder from time to time as shall be necessary, in the opinion
of Bond Counsel, to comply with the provisions of the Code.
SECTION 4.04. ANTI - DILUTION. During such time as any Bonds are
Outstanding hereunder, the Issuer agrees and covenants with the Bondholders that (1)
Non -Ad Valorem Revenues shall cover projected Maximum Annual Debt Service on the
Bonds and maximum annual debt service on Debt by at least 1.5x; and (2) projected
Maximum Annual Debt Service on the Bonds and maximum annual debt service for all
Debt will not exceed 20% of the aggregate of General Fund Revenues, MSTD Revenues
25
Agenda Item No. 10C
October 26, 2010
Page 32 of 156
and Impact Fee Proceeds exclusive of (a) ad valorem tax revenues restricted to payment
of debt service on any Debt and (b) any proceeds of the Bonds or Debt. The calculations
required by clauses (1) and (2) above shall be determined using the average of actual
revenues for the prior two Fiscal Years based on the Issuer's Annual Audits.
For the purposes of the covenants contained in this Section 4.04, maximum annual
debt service on Debt means, with respect to Debt that bears interest at a fixed interest
rate, the actual maximum annual debt service, and, with respect to Debt which bears
interest at a variable interest rate, maximum annual debt service on such Debt shall be
determined assuming that interest accrues on such Debt at the current "Bond Buyer
Revenue Bond Index" as published in The Bond Buyer no more than two weeks prior to
any such calculation; provided, however, if any Debt, whether bearing interest at a fixed
or variable interest rate, constitutes Balloon Indebtedness, as defined in the immediately
following sentence, maximum annual debt service on such Debt shall be determined
assuming such Debt is amortized over 20 years on an approximately level debt service
basis. For purposes of the foregoing sentence, 'Balloon Indebtedness" means Debt, 25%
or more of the original principal of which matures during any one Fiscal Year. In
addition, with respect to debt service on any Debt which is subject to a Qualified Hedge
Agreement, interest on such Debt during the term of such Qualified Hedge Agreement
shall be deemed to be the Hedge Payments coming due during such period of time.
[Remainder of page intentionally left blank]
W
Agenda Item No. 10C
October 26, 2010
Page 33 of 156
ARTICLE V
COVENANTS
SECTION 5.01. GENERAL. The Issuer hereby makes the following
covenants, in addition to all other covenants in this Resolution, with each and every
successive Holder of any of the Bonds so long as any of said Bonds remain Outstanding.
SECTION 5.02. ANNUAL BUDGET. The Issuer shall annually prepare and
adopt, prior to the beginning of each Fiscal Year, an Annual Budget in accordance with
applicable law.
If for any reason the Issuer shall not have adopted the Annual Budget before the
first day of any Fiscal Year, the preliminary budget for such year shall be deemed to be in
effect for such Fiscal Year until the Annual Budget for such Fiscal Year is adopted.
The Issuer shall provide the Annual Budget to any Holder or Holders of Bonds
upon written request. The Issuer shall be permitted to make a reasonable charge for
furnishing such information to such Holder or Holders.
SECTION 5.03. ANNUAL AUDIT. The Issuer shall, immediately after the
close of each Fiscal Year, cause the books, records and accounts relating to the Issuer to
be properly audited by a recognized independent firm of certified public accountants, and
shall require such accountants to complete their report of such Annual Audit in
accordance with applicable law. Each Annual Audit shall be in conformity with
generally accepted accounting principles as applied to governmental entities.
The Issuer shall provide the Annual Audit to any Holder or Holders of Bonds upon
written request. The Issuer shall be permitted to make a reasonable charge for furnishing
such information to such Holder or Holders.
SECTION 5.04. FEDERAL INCOME TAXATION COVENANTS. The
Issuer covenants with the Holders of the Bonds that it shall not use the proceeds of the
Bonds in any manner which would cause the interest on such Bonds to be or become
included in gross income for purposes of federal income taxation.
The Issuer covenants with the Holders of the Bonds that neither the Issuer nor any
Person under its control or direction will make any use of the proceeds of the Bonds (or
amounts deemed to be proceeds under the Code) in any manner which would cause the
Bonds to be "arbitrage bonds" within the meaning of the Code and neither the Issuer nor
any other Person shall do any act or fail to do any act which would cause the interest on
the Bonds to become subject to inclusion within gross income for purposes of federal
income taxation.
27
Agenda Item No. 10C
October 26, 2010
Page 34 of 156
The Issuer hereby covenants with the Holders of the Bonds that it will comply
with all provisions of the Code necessary to maintain the exclusion from gross income of
interest on the Bonds for purposes of federal income taxation, including, in particular, the
payment of any amount required to be rebated to the U.S. Treasury pursuant to the Code.
[Remainder of page intentionally left blank]
W.
Agenda Item No. 10C
October 26, 2010
Page 35 of 156
ARTICLE VI
DEFAULTS AND REMEDIES
SECTION 6.01. EVENTS OF DEFAULT. The following events shall each
constitute an "Event of Default ":
(A) Default shall be made in the payment of the principal of or interest on any
Bond when due
(B) There shall occur the dissolution or liquidation of the Issuer, or the filing by
the Issuer of a voluntary petition in bankruptcy, or the commission by the Issuer of any
act of bankruptcy, or adjudication of the Issuer as a bankrupt, or assignment by the Issuer
for the benefit of its creditors, or appointment of a receiver for the Issuer, or the entry by
the Issuer into an agreement of composition with its creditors, or the approval by a court
of competent jurisdiction of a petition applicable to the Issuer in any proceeding for its
reorganization instituted under the provisions of the Federal Bankruptcy Act, as
amended, or under any similar act in any jurisdiction which may now be in effect or
hereafter enacted.
(C) The Issuer shall default in the due and punctual performance of any other of
the covenants, conditions, agreements and provisions contained in the Bonds or in this
Resolution on the part of the Issuer to be performed, and such default shall continue for a
period of 30 days after written notice of such default shall have been received from the
Holders of not less than 25% of the aggregate principal amount of Bonds Outstanding.
Notwithstanding the foregoing, the Issuer shall not be deemed to be in default hereunder
if such default can be cured within a reasonable period of time and if the Issuer in good
faith institutes appropriate curative action and diligently pursues such action until default
has been corrected.
SECTION 6.02. REMEDIES. Any Holder of Bonds issued under the
provisions of this Resolution or any trustee or receiver acting for such Bondholders may
either at law or in equity, by suit, action, mandamus or other proceedings in any court of
competent jurisdiction, protect and enforce any and all rights under the Laws of the State,
or granted and contained in this Resolution, and may enforce and compel the
performance of all duties required by this Resolution or by any applicable statutes to be
performed by the Issuer or by any officer thereof; provided, however, that no Holder,
trustee or receiver shall have the right to declare the Bonds immediately due and payable.
The Holder or Holders of Bonds in an aggregate principal amount of not less than
25% of the Bonds then Outstanding may by a duly executed certificate in writing appoint
a trustee for Holders of Bonds issued pursuant to this Resolution with authority to
represent such Bondholders in any legal proceedings for the enforcement and protection
of the rights of such Bondholders and such certificate shall be executed by such
29
Agenda Item No. 10C
October 26, 2010
Page 36 of 156
Bondholders or their duly authorized attorneys or representatives, and shall be filed in the
office of the Clerk. Notice of such appointment, together with evidence of the requisite
signatures of the Holders of not less than 25% in aggregate principal amount of Bonds
Outstanding and the trust instrument under which the trustee shall have agreed to serve
shall be filed with the Issuer and the trustee and notice of such appointment shall be given
to all Holders of Bonds by regular mail, postage prepaid. After the appointment of the
first trustee hereunder, no further trustees may be appointed; however, the Holders of a
majority in aggregate principal amount of all the Bonds then Outstanding may remove
the trustee initially appointed and appoint a successor and subsequent successors at any
time.
SECTION 6.03. DIRECTIONS TO TRUSTEE AS TO REMEDIAL
PROCEEDINGS. The Holders of a majority in principal amount of the Bonds then
Outstanding) have the right, by an instrument or concurrent instruments in writing
executed and delivered to the trustee, to direct the method and place of conducting all
remedial proceedings to be taken by the trustee hereunder with respect to the Bonds
owned by such Holders, provided that such direction shall not be otherwise than in
accordance with law or the provisions hereof, and that the trustee shall have the right to
decline to follow any direction which in the opinion of the trustee would be unjustly
prejudicial to Holders of Bonds not parties to such direction.
SECTION 6.04. REMEDIES CUMULATIVE. No remedy herein conferred
upon or reserved to the Bondholders is intended to be exclusive of any other remedy or
remedies, and each and every such remedy shall be cumulative, and shall be in addition
to every other remedy given hereunder or now or hereafter existing at law or in equity or
by statute.
SECTION 6.05. WAIVER OF DEFAULT. No delay or omission of any
Bondholder to exercise any right or power accruing upon any default shall impair any
such right or power or shall be construed to be a waiver of any such default, or an
acquiescence therein; and every power and remedy given by Section 6.02 to the
Bondholders may be exercised from time to time, and as often as may be deemed
expedient.
SECTION 6.06. APPLICATION OF MONEYS AFTER DEFAULT. If an
Event of Default shall happen and shall not have been remedied, the Issuer or a trustee or
receiver appointed for the purpose shall apply all moneys received from the Issuer for
payment of the Outstanding Bonds as follows and in the following order:
A. To the payment of the reasonable and proper charges, expenses and
liabilities of the trustee or receiver and Registrar hereunder;
B. To the payment of the interest and principal then due on the Bonds, as
follows: _
N
Agenda Item No. 10C
October 26, 2010
Page 37 of 156
(1) Unless the principal of all the Bonds shall have become due and
payable, all such moneys shall be applied:
FIRST: to the payment to the Persons entitled thereto of all
installments of interest then due (other than interest on Bonds for the
payment of which moneys are held pursuant to the provisions of
Section 8.01 of this Resolution), in the order of the maturity of such
installments, and, if the amount available shall not be sufficient to
pay in full any particular installment, then to the payment ratably,
according to the amounts due on such installment, to the Persons
entitled thereto, without any discrimination or preference; and
SECOND: to the payment to the Persons entitled thereto of the
unpaid principal of any of the Bonds which shall have become due at
maturity, in the order of their due dates, with interest upon such
Bonds from the respective dates upon which they became due, and,
if the amount available shall not be sufficient to pay in full Bonds
due on any particular date, together with such interest, then to the
payment first of such interest, ratably according to the amount of
such interest due on such date, and then to the payment of such
principal, ratably according to the amount of such principal due on
such date, to the Persons entitled thereto without any discrimination
or preference.
(2) If the principal of all the Bonds shall have become due and payable,
all such moneys shall be applied to the payment of the principal and interest then
due and unpaid upon the Bonds, with interest thereon as aforesaid, without
preference or priority of principal over interest or of interest over principal, or of
any installment of interest over any other installment of interest, or of any Bond
over any other Bond, ratably, according to the amounts due respectively for
principal and interest, to the Persons entitled thereto without any discrimination or
preference.
31
Agenda Item No. 10C
October 26, 2010
Page 38 of 156
ARTICLE VII
SUPPLEMENTAL RESOLUTIONS
SECTION 7.01. SUPPLEMENTAL RESOLUTION WITHOUT
BONDHOLDERS' CONSENT. The Issuer, from time to time and at any time, may
adopt such Supplemental Resolutions without the consent of the Bondholders (which
Supplemental Resolution shall thereafter form a part hereof) for any of the following
purposes:
(A) To cure any ambiguity or formal defect or omission or to correct any
inconsistent provisions in this Resolution or to clarify any matters or questions arising
hereunder.
(B) To grant to or confer upon the Bondholders any additional rights, remedies,
powers, authority or security that may lawfully be granted to or conferred upon the
Bondholders.
(C) To add to the conditions, limitations and restrictions on the issuance of
Bonds under the provisions of this Resolution other conditions, limitations and
restrictions thereafter to be observed.
(D) To add to the covenants and agreements of the Issuer in this Resolution
other covenants and agreements thereafter to be observed by the Issuer or to surrender
any right or power herein reserved to or conferred upon the Issuer.
(E) To specify and determine the matters and things referred to in Section 2.01
hereof and also any other matters and things relative to such Bonds which are not
contrary to or inconsistent with this Resolution as theretofore in effect, or to amend,
modify or rescind any such authorization, specification or determination at any time prior
to the first delivery of the Bonds.
(F) To make any other change that, in the reasonable opinion of the Issuer,
would not materially adversely affect the interests of the Holders of the Bonds.
SECTION 7.02. SUPPLEMENTAL RESOLUTION WITH
BONDHOLDERS'CONSENT. Subject to the terms and provisions contained in this
Section 7.02 and Sections 7.01 and 7.03 hereof, the Holder or Holders of not less than a
majority in aggregate principal amount of the Bonds then Outstanding shall have the
right, from time to time, anything contained in this Resolution to the contrary
notwithstanding, to consent to and approve the adoption of such Supplemental
Resolutions hereto as shall be deemed necessary or desirable by the Issuer for the purpose
of supplementing, modifying, altering, amending, adding to or rescinding, in any
particular, any of the terms or provisions contained in this Resolution; provided,
however, that if such modification or amendment will, by its terms, not take effect so
32
Agenda Item No. 10C
October 26, 2010
Page 39 of 156
long as any Bonds of any specified maturity remain Outstanding, the consent of the
Holders of such Bonds shall not be required and such Bonds shall not be deemed to be
Outstanding for the purpose of any calculation of Outstanding Bonds under this Section
7.02. No Supplemental Resolution may be approved or adopted which shall permit or
require, without the consent of all affected Bondholders, (A) an extension of the maturity
of the principal of or the payment of the interest on any Bond issued hereunder,
(B) reduction in the principal amount of any Bond or the rate of interest thereon, (C) a
preference or priority of any Bond or Bonds over any other Bond or Bonds, or (D) a
reduction in the aggregate principal amount of the Bonds required for consent to such
Supplemental Resolution. Nothing herein contained, however, shall be construed as
making necessary the approval by Bondholders of the adoption of any Supplemental
Resolution as authorized in Section 7.01 hereof.
If at any time the Issuer shall determine that it is necessary or desirable to adopt
any Supplemental Resolution pursuant to this Section 7.02, the Clerk shall cause the
Registrar to give notice of the proposed adoption of such Supplemental Resolution and
the form of consent to such adoption to be mailed, postage prepaid, to all Bondholders at
their addresses as they appear on the registration books. Such notice shall briefly set
forth the nature of the proposed Supplemental Resolution and shall state that copies
thereof are on file at the offices of the Clerk and the Registrar for inspection by all
Bondholders. The Issuer shall not, however, be subject to any liability to any Bondholder
by reason of its failure to cause the notice required by this Section 7.02 to be mailed and
any such failure shall not affect the validity of such Supplemental Resolution when
consented to and approved as provided in this Section 7.02.
Whenever the Issuer shall deliver to the Clerk an instrument or instruments in
writing purporting to be executed by the Holders of not less than a majority in aggregate
principal amount of the Bonds then Outstanding, which instrument or instruments shall
refer to the proposed Supplemental Resolution described in such notice and shall
specifically consent to and approve the adoption thereof in substantially the form of the
copy thereof referred to in such notice, thereupon, but not otherwise, the Issuer may
adopt such Supplemental Resolution in substantially such form, without liability or
responsibility to any Holder of any Bond, whether or not such Holder shall have
consented thereto.
If the Holders of not less than a majority in aggregate principal amount of the
Bonds Outstanding at the time of the adoption of such Supplemental Resolution shall
have consented to and approved the adoption thereof as herein provided, no Holder of
any Bond shall have any right to object to the adoption of such Supplemental Resolution,
or to object to any of the terms and provisions contained therein or the operation thereof,
or in any manner to question the propriety of the adoption thereof, or to enjoin or restrain
the Issuer from adopting the same or from taking any action pursuant to the provisions
thereof.
33
Agenda Item No. 10C
October 26, 2010
Page 40 of 156
Upon the adoption of any Supplemental Resolution pursuant to the provisions of
this Section 7.02, this Resolution shall be deemed to be modified and amended in
accordance therewith, and the respective rights, duties and obligations under this
Resolution of the Issuer and all Holders of Bonds then Outstanding shall thereafter be
determined, exercised and enforced in all respects under the provisions of this Resolution
as so modified and amended.
[Remainder of page intentionally left blank]
34
Agenda Item No. 10C
October 26, 2010
Page 41 of 156
ARTICLE VIII
DEFEASANCE
SECTION 8.01. DEFEASANCE. If the Issuer shall pay or cause to be paid
or there shall otherwise be paid to the Holders of any Bonds, the principal and interest
due or to become due thereon, at the times and in the manner stipulated therein and in this
Resolution, all covenants, agreements and other obligations of the Issuer to the holders of
such Bonds shall thereupon cease, terminate and become void and be discharged and
satisfied. In such event, the Paying Agents shall pay over or deliver to the Issuer all
money or securities held by them pursuant to this Resolution which are not required for
payment of any Bonds not theretofore surrendered for such payment.
Any Bonds or interest installments appertaining thereto shall be deemed to have
been paid within the meaning of this Section 8.01 if there shall have been deposited in
irrevocable trust with a banking institution or trust company by or on behalf of the Issuer
either moneys in an amount which shall be sufficient, or Refunding Securities verified by
an independent certified public accountant to be in such amount that the principal of and
the interest on which, when due, will provide moneys which, together with the moneys, if
any, deposited with such banking institution or trust company at the same time shall be
sufficient, to pay the principal of and interest due and to become due on said Bonds on
and prior to the maturity date thereof, as the case may be. Except as hereafter provided,
neither the Refunding Securities nor any moneys so deposited with such banking
institution or trust company nor any moneys received by such bank or trust company on
account of principal of or interest on said Refunding Securities shall be withdrawn or
used for any purpose other than, and all such moneys shall be held in trust for and be
applied to, the payment, when due, of the principal of the Bonds for the payment of
which they were deposited and the interest accruing thereon to the date of maturity;
provided, however, the Issuer may substitute new Refunding Securities and moneys for
the deposited Refunding Securities and moneys if the new Refunding Securities and
moneys are sufficient to pay the principal of and interest on the refunded Bonds.
If Bonds are not to be paid within 60 days after any such defeasance described in
this Section 8.01, the Issuer shall cause the Registrar to mail a notice to the Holders of
such Bonds that the deposit required by this Section 8.01 of moneys or Refunding
Securities has been made and said Bonds are deemed to be paid in accordance with the
provisions of this Section 8.01 and stating such maturity date upon which moneys are to
be available for the payment of the principal of and interest on said Bonds. Failure to
provide said notice shall not affect the Bonds being deemed to have been paid in
accordance with the provisions of this Section 8.01.
35
Agenda Item No. 10C
October 26, 2010
Page 42 of 156
ARTICLE IX
PROVISIONS RELATING TO BONDS
SECTION 9.01. OFFICIAL NOTICE OF SALE. The form of the Official
Notice of Sale attached hereto as Exhibit A and the terms and provisions thereof are
hereby authorized and approved. The Chairman is hereby authorized to make such
changes, insertions and modifications as he or she shall deem necessary prior to the
advertisement of such Official Notice of Sale or a summary thereof. The Chairman is
hereby authorized to advertise and publish the Official Notice of Sale or a summary
thereof at such time as he or she shall deem necessary and appropriate, upon the advice of
the Financial Advisor and Bond Counsel, to accomplish the competitive sale of the Bonds
in accordance with applicable law.
SECTION 9.02. PRELIMINARY OFFICIAL STATEMENT; OFFICIAL
STATEMENT. (A) The Issuer hereby authorizes the distribution and use of the
Preliminary Official Statement in substantially the form attached hereto as Exhibit C in
connection with the offering of the Bonds for sale. If between the date hereof and the
mailing of the Preliminary Official Statement, it is necessary to make insertions,
modifications or changes in the Preliminary Official Statement, any Authorized Officer is
hereby authorized to approve such insertions, changes and modifications. Any
Authorized Issuer Officer is hereby authorized to deem the Preliminary Official
Statement "final" within the meaning of Rule 15c2- 12(b)(1) under the Securities
Exchange Act of 1934 in the form as mailed. Execution of a certificate by an Authorized
Issuer Officer deeming the Preliminary Official Statement "final" as described above
shall be conclusive evidence of the approval of any insertions, changes or modifications.
(B) Subject in all respects to the satisfaction of the conditions set forth in
Section 2.01 hereof, the Chairman is hereby authorized and directed to execute and
deliver a final Official Statement, dated the date of the sale of the Bonds, which shall be
in substantially the form of the Preliminary Official Statement relating to the Bonds, in
the name and on behalf of the Issuer, and thereupon to cause such Official Statement to
be delivered to the Underwriter with such changes, amendments, modifications,
omissions and additions as may be approved by the Chairman. Said Official Statement,
including any such changes, amendments, modifications, omissions and additions as
approved by the Chairman, and the information contained therein are hereby authorized
to be used in connection with the sale of the Bonds to the public. Execution by the
Chairman of the Official Statement shall be deemed to be conclusive evidence of
approval of such changes.
SECTION 9.03. APPOINTMENT OF PAYING AGENT AND
REGISTRAR. Subject in all respects to the satisfaction of the conditions set forth in
Section 2.01 hereof, U.S. Bank National Association, Miami, Florida is hereby
designated Registrar and Paying Agent for the Bonds. Any Authorized Officer is hereby
36
Agenda Item No. 10C
October 26, 2010
Page 43 of 156
authorized to enter into any agreement which may be necessary to effect the transactions
contemplated by this Section 9.02 and by this Resolution.
SECTION 9.04. SECONDARY MARKET DISCLOSURE. Subject to the
satisfaction in all respects with the conditions set forth in Section 2.01 hereof, the Issuer
hereby covenants and agrees that, in order to provide for compliance by the Issuer with
the secondary market disclosure requirements of Rule 15c2 -12 of the Security and
Exchange Commission (the "Rule "), it will comply with and carry out all of the
provisions of the Continuing Disclosure Certificate (the "Disclosure Certificate ") to be
executed by the Issuer and dated the date of delivery of the Bonds, as it may be amended
from time to time in accordance with the terms thereof. The Disclosure Certificate shall
be substantially in the form attached hereto as Exhibit B with such changes, amendments,
modifications, omissions and additions as shall be approved by the Chairman who is
hereby authorized to execute and deliver such Disclosure Certificate. Notwithstanding
any other provision of the Resolution, failure of the Issuer to comply with such
Disclosure Certificate shall not be considered an event of default hereunder; provided,
however, any Bondholder may take such actions as may be necessary and appropriate,
including seeking mandate or specific performance by court order, to cause the Issuer to
comply with its obligations under this Section 9.04 and the Disclosure Certificate. For
purposes of this Section 9.04 "Bondholder" shall mean any person who (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 nominees,
depositories or other intermediaries), or (B) is treated as the owner of any Bonds for
federal income tax purposes.
SECTION 9.04. AUTHORIZATION TO EXECUTE ESCROW
AGREEMENT. Subject in all respects to the satisfaction of the conditions set forth in
Section 2.01 hereof, the Issuer hereby authorizes the Chairman to execute and the Clerk
to attest the Escrow Agreement and to deliver the Escrow Agreement to U.S. Bank
National Association, Miami, Florida, which is hereby appointed as Escrow Agent
thereunder. All of the provisions of the Escrow Agreement when executed and delivered
by the Issuer as authorized herein and when duly authorized, executed and delivered by
the Escrow Agent, shall be deemed to be a part of this Resolution as fully and to the same
extent as if incorporated verbatim herein, and the Escrow Agreement shall be in
substantially the form attached hereto as Exhibit D, with such changes, amendments,
modifications, omissions and additions, including the date of such Escrow Agreement, as
may be approved by the Chairman. Execution by the Chairman of the Escrow
Agreement shall be deemed to be conclusive evidence of the approval of such changes.
37
Agenda Item No. 10C
October 26, 2010
Page 44 of 156
ARTICLE X
MISCELLANEOUS
SECTION 10.01. SALE OF BONDS. The Bonds shall be issued and sold at
public or private sale at one time or in installments from time to time and at such price or
prices as shall be consistent with the provisions of the Act, the requirements of this
Resolution and other applicable provisions of law.
SECTION 10.02. SEVERABILITY OF INVALID PROVISIONS. If any
one or more of the covenants, agreements or provisions of this Resolution shall be held
contrary to any express provision of law or contrary to the policy of express law, though
not expressly prohibited, or against public policy, or shall for any reason whatsoever be
held invalid, then such covenants, agreements or provisions shall be null and void and
shall be deemed separable from the remaining covenants, agreements and provisions of
this Resolution and shall in no way affect the validity of any of the other covenants,
agreements or provisions hereof or of the Bonds issued hereunder.
SECTION 10.03. VALIDATION AUTHORIZED. To the extent deemed
necessary by Bond Counsel or desirable by the County Attorney, Bond Counsel is
authorized to institute appropriate proceedings for validation of the Bonds herein
authorized pursuant to Chapter 75, Florida Statutes.
SECTION 10.04. REPEAL OF INCONSISTENT RESOLUTIONS. All
ordinances, resolutions or parts thereof in conflict herewith are hereby superseded and
repealed to the extent of such conflict.
[Remainder of page intentionally left blank]
Agenda Item No. 10C
October 26, 2010
Page 45 of 156
SECTION 10.05. EFFECTIVE DATE. This Resolution shall become
effective immediately upon its adoption.
DULY ADOPTED this 26th day of October, 2010.
(SEAL)
ATTEST:
Dwight E. Brock, Clerk
By: Deputy Clerk
Approved as to Form and Legal
Sufficiency:
County Attorney
COLLIER COUNTY, FLORIDA
Chairman, Board of County Commissioners
39
Agenda Item No. 10C
October 26, 2010
Page 46 of 156
EXHIBIT A
Form of Official Notice of Sale
Agenda Item No. 10C
October 26, 2010
Page 47 of 156
EXHIBIT B
Form of Continuing Disclosure Certificate
Agenda Item No. 10C
October 26, 2010
Page 48 of 156
EXHIBIT C
Form of Preliminary Official Statement
Agenda Item No. 10C
October 26, 2010
Page 49 of 156
EXHIBIT D
Form of Escrow Agreement
Agenda Item No. 10C
October 26, 2010
Page 50 of 156
OFFICIAL NOTICE OF SALE
Collier County, Florida
Special Obligation Refunding Revenue Bonds,
Series 2010B
Electronic Bids, as Described Herein, Will Be Accepted Until
10:00 a.m., Eastern Standard Time, November 10, 2010*
*Preliminary, subject to change.
Collier County, Florida Special Obligation Revenue Bonds, Series 2010B - Official Notice of Sale
Page 1
Agenda Item No. 10C
October 26, 2010
Page 51 of 156
OFFICIAL NOTICE OF SALE
Collier County, Florida Special Obligation Refunding Revenue Bonds,
Series 2010B
NOTICE IS HEREBY GIVEN that electronic bids will be received in the manner, on the
date and up to the time specified below:
DATE: November 10, 2010*
TIME: 10:00 A.M. Eastern Standard Time*
ELECTRONIC BIDS: May be submitted only through Public Financial Management's
PFMauction website ( "PFMauction ") as described below. No
other form of bid or provider of electronic bidding services will
be accepted.
GENERAL
Bids will be received at the office of the County Manager of Collier County,
Florida, Collier County Government Complex, 3301 East Tamiami Trail, Building F
Naples, Florida 34112, for the purchase of all, but not less than all, of the
$ * Collier County, Florida Special Obligation Refunding Revenue Bonds,
Series 2010B (the "Bonds ") to be issued by Collier County, Florida (the "County ")
pursuant to the terms and conditions of a resolution adopted by the Board of County
Commissioners of the County, on October 26, 2010 (the "Bond Resolution "). Such bids
will be opened in public in accordance with applicable legal requirements.
The Bond proceeds will be used to refund certain outstanding indebtedness of the
County, and to pay costs of issuing the Bonds.
The Bonds are more particularly described in the Preliminary Official Statement
dated October , 2010 (the "Preliminary Official Statement ") relating to the Bonds,
available at PFMauction's website, www.pfinauction.com. com. This Official Notice of Sale
contains certain information for quick reference only. It is not, and is not intended to be,
a summary of the Bonds. Each bidder is required to read the entire Preliminary Official
Statement to obtain information essential to making an informed investment decision.
*Preliminary, subject to change.
county, C torula Special Obligation Revenue Bonds, Series 20I0B - Official Notice of Sale
Page 2
Agenda Item No. 10C
October 26, 2010
Page 52 of 156
Prior to accepting bids, the County reserves the right to change the principal
amount of the Bonds being offered and the terms of the Bonds, to postpone the sale to a
later date or time, or cancel the sale. Notice of a change or cancellation will be
announced via The Bond Buyer news service at the internet website address
www.tm3.com, not later than Noon, Eastern Standard Time, on the day preceding the bid
opening or as soon as practicable. Such notice will specify the revised principal amount
or terms, if any, and any later date or time selected for the sale, which may be postponed
or cancelled in the same manner. If the sale is postponed, a later public sale may be held
at the hour, in the manner, and on such date as communicated upon at least twenty -four
(24) hours notice via The Bond Buyer news service at the internet website address
www.tm3.com. The County reserves the right, after the bids are opened, to adjust the
principal amount of the Bonds, as further described herein. See "ADJUSTMENT OF
AMOUNTS AND MATURITIES."
To the extent any instructions or directions set forth in PFMauction conflict with
this Official Notice of Sale, the terms of this Official Notice of Sale shall control. For
further information about PFMauction and to subscribe in advance of the bid, potential
bidders may contact PFMauction at (412) 391 -5555, extension 370.
Each prospective electronic bidder must be a subscriber to PFMauction. Each
qualified prospective electronic bidder shall be solely responsible to make necessary
arrangements to view the bid form on PFMauction and to access PFMauction for the
purposes of submitting its bid in a timely manner and in compliance with the
requirements of the Official Notice of Sale. Neither the County nor PFMauction shall
have any duty or obligation to provide or assure access to PFMauction to any prospective
bidder, and neither the County nor PFMauction shall be responsible for a bidder's failure
to register to bid or for proper operation of, or have any liability for any delays or
interruptions of, or any damages caused by, PFMauction. The County is using
PFMauction as a communication mechanism, and not as the County's agent, to conduct
the electronic bidding for the Bonds. The County is not bound by any advice and
determination of PFMauction to the effect that any particular bid complies with the terms
of this Official Notice of Sale and, in particular, the bid specifications hereinafter set
forth. All costs and ,expenses incurred by prospective bidders in connection with their
registration and submission of bids via PFMauction are the sole responsibility of such
bidders and the County shall not be responsible, directly or indirectly, for any such costs
or expenses. If a prospective bidder encounters any difficulty in submitting, modifying
or withdrawing a bid for the Bonds, the prospective bidder should immediately telephone
PFMauction at 412 -391 -5555, extension 370, and notify the County's Financial Advisor,
Public Financial Management, Inc., at 305- 448 -6992 or masvidals @pfm.com. The
County shall have no responsibility for technological or transmission errors that any
bidder may experience in transmitting a bid. The use of PFMauction shall be at the
bidder's risk and expense, and the County shall have no liability with respect thereto.
Collier County, Florida Special Obligation Revenue Bonds, Series 2010B - Official Notice of Sale
Page 3
Agenda Item No. 10C
October 26, 2010
Page 53 of 156
THE BONDS
The Bonds will be issued in fully registered, book -entry only form, without
coupons, will be dated as of their date of delivery (currently anticipated to be
November 18, 2010), will be issued in denominations of $5,000 or integral multiples
thereof, will bear interest from their dated date until paid at the annual rate or rates
specified by the successful bidder, subject to the limitations specified below, payable as
shown on the Summary Table set forth herein. Interest will be computed on the basis of a
360 -day year of twelve 30 -day months. The Bonds must meet the minimum and
maximum coupon and reoffering price criteria shown in the Summary Table on a
maturity and aggregate basis.
The Bonds will mature on the dates, in the years and principal amounts shown on
the Summary Table as serial bonds except as otherwise adjusted as described herein.
NO OPTIONAL OR MANDATORY SINKING FUND REDEMPTION
The Bonds shall not be subject to optional or mandatory sinking fund redemption.
SECURITY
The County has covenanted and agreed in the Bond Resolution to appropriate in
its annual budget, by amendment, if necessary, from Non -Ad Valorem Revenues (as
defined in the Bond Resolution) amounts sufficient to (A) pay principal of and interest on
the Bonds when due, and (B) pay all required deposits to the Rebate Fund (as defined in
the Bond Resolution) pursuant to the Bond Resolution. Such covenant and agreement on
the part of the County to budget and appropriate such amounts of Non -Ad Valorem
Revenues shall be cumulative to the extent not paid, and shall continue until such Non -
Ad Valorem Revenues or other legally available funds in amounts sufficient to make all
such required payments shall have been budgeted, appropriated and actually paid.
Notwithstanding the foregoing covenant of the County, the County does not covenant to
maintain any services or programs, now provided or maintained by the County, which
generate Non -Ad Valorem Revenues.
Such covenant to budget and appropriate does not create any lien upon or pledge
of such Non -Ad Valorem Revenues, nor does it preclude the County from pledging in the
future its Non -Ad Valorem Revenues, nor does it require the County to levy and collect
any particular Non -Ad Valorem Revenues, nor does it give the Bondholders a prior claim
on the Non -Ad Valorem Revenues as opposed to claims of general creditors of the
County. Such covenant to appropriate Non -Ad Valorem Revenues is subject in all
respects to the payment of obligations secured by a pledge of such Non -Ad Valorem
Revenues heretofore or hereafter entered into (including the payment of debt service on
bonds and other debt instruments). However, the covenant to budget and appropriate for
the purposes and in the manner stated herein shall have the effect of making available for
Collier County, Florida Special Obligation Revenue Bonds, Series 2010B - Official Notice of Sale
Page 4
Agenda Item No. 10C
October 26, 2010
Page 54 of 156
the payment of the Bonds, in the manner described herein, Non -Ad Valorem Revenues
and placing on the County a positive duty to appropriate and budget, by amendment, if
necessary, amounts sufficient to meet its obligations hereunder; subject, however, in all
respects to the restrictions of Section 129.07, Florida Statutes, which generally provide
that the governing body of each county may only make appropriations for each fiscal year
which, in any one year, shall not exceed the - amount to be received from taxation or other
revenue sources; and subject, further, to the payment of services and programs which are
for essential public purposes affecting the health, safety and welfare of the inhabitants of
the County or which are legally mandated by applicable law.
See the Preliminary Official Statement for more information regarding the security
for the Bonds.
Collier County, Florida Special Obligation Revenue Bonds, Series 20I0B - Official Notice of Sale
Page 5
Agenda Item No. 10C
October 26, 2010
Page 55 of 156
Summary Table
If numerical or date references contained in the body of this Official Notice of Sale conflict with this Summary Table, the body of
this Official Notice of Sale shall control. Consult the body of this Official Notice of Sale for a detailed explanation of the items
contained in the Summary Table, including interpretation of such items and methodologies used to determine such items.
Prospective purchasers of the bonds must read the entire Official Notice of Sale and the entire Preliminary Official Statement.
Terms of the Bonds
Dated Date:
Anticipated Delivery Date:
Interest Payment Dates:
Principal Payment Dates (October 1):
Year
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Interest Calculation:
Ratings:
Bidding Parameters
Sale Date:
Bidding Method:
All or none vs. Maturity-by- Maturity:
Bid Award Method:
Bid Confirmation:
Bid Award:
Good Faith Deposit:
Coupon Multiples:
Maximum Coupon:
Minimum Coupon:
Optional Redemption:
Term Bonds:
Maximum Reoffering Price: Maturity
Aggregate
Maturity
Aggregate
Minimum Reoffering Price:
Insurance:
Date of Delivery
November 18, 2010*
April 1 and October 1, commencing April 1, 2011
Principal Amount*
360 -day year of twelve 30 -day months
[Moody's: AA2
S &P: AA
Fitch: AA]
November 10, 2010*
PFMauction
All -or -none
Lowest true interest cost
Fax signed Official Confirmation of Bid Form
As soon as practicable on day of sale
$ ; See "GOOD FAITH DEPOSIT" herein
1/8 or 1/20 of 1%
5.00%
None
No
No
Unlimited
Unlimited
98%
98%
No
Adjustment Parameters (As required to optimize funding of projects)
Principal Increases: Maturity Unlimited
Aggregate 10.0%
Principal Reductions: Maturity Unlimited
Aggregate 10.0%
* Preliminary, subject to change.
Collier County, Florida Special Obligation Revenue Bonds, Series 2010B - Official Notice of Sale
Page 6
Agenda Item No. 10C
October 26, 2010
Page 56 of 156
ADJUSTMENT OF AMOUNTS AND MATURITIES
The aggregate principal amount of each maturity of Bonds is subject to adjustment
by the County after the receipt and opening of the bids for their purchase. Changes to be
made after the opening of the bids will be communicated to the successful bidder directly
prior to 8:00 a.m., Eastern Standard Time on the date following the sale date.
The County may cancel the sale of the Bonds or adjust the aggregate principal
amount. The County may increase or decrease the principal amount of the Bonds or any
maturity thereof by no more than the individual maturity or aggregate principal
percentages, if any, shown in the Summary Table. The County will consult with the
successful bidder before adjusting the amount of any maturity of the Bonds or canceling
the Bonds; however, the County reserves the sole right to make adjustments, within the
limits described above, or cancel the sale of the Bonds.
Adjustment to the size of the Bonds within the limits described above does not
relieve the purchaser from its obligation to purchase all of the Bonds offered by the
County.
Each bid must specify the initial reoffering prices to the public of each maturity of
Bonds. Adjustments may be made to the principal amounts based on the reoffering
prices shown on PFMauction. In determining whether there will be any revision to the
principal amount of or maturity of the Bonds subsequent to the bid opening and award,
the County expects that changes may be made that are necessary to increase or decrease
the principal amount of the Bonds to meet the County's funding objectives, all subject to
the limitations set forth above.
In the event that the principal amount of any maturity of the Bonds is revised after
the award, the interest rate and reoffering price for each maturity and the Underwriter's
Discount on the Bonds as submitted by the successful bidder shall be held constant. The
"Underwriter's Discount" shall be defined as the difference between the purchase price of
the Bonds submitted by the bidder and the price at which the Bonds will be issued to the
public, calculated from information provided by the bidder, divided by the par amount of
the Bonds bid.
FORM AND PAYMENT
The Bonds will be issued in fully registered, book -entry only form and a bond
certificate for each maturity will be issued to The Depository Trust Company, New York,
New York ( "DTC "), registered in the name of its nominee, Cede & Co. A book -entry
system will be employed, evidencing ownership of the Bonds, with transfers of
ownership effected on the records of DTC and its participants pursuant to rules and
procedures adopted by DTC and its participants. The successful bidder, as a condition to
Collier County, Florida Special Obligation Revenue Bonds, Series 2010B - Official Notice of Sale
Page 7
Agenda Item No. 10C
October 26, 2010
Page 57 of 156
delivery of the Bonds, will be required to deposit the Bond certificates with DTC or the
Registrar (as defined below), registered in the name of Cede & Co. Principal of,
premium, if any, and interest on the Bonds will be payable by Regions Bank, the paying
agent and registrar (the "Registrar ") for the Bonds by wire transfer or in clearinghouse
funds to DTC or its nominee as registered owner of the Bonds. Transfer of principal,
premium, if any, and interest payments to the beneficial owners by participants of DTC
will be the responsibility of such participants and other nominees of beneficial owners.
Neither the County nor the Registrar will be responsible or liable for payments by DTC
to its participants or by DTC participants to beneficial owners or for maintaining,
supervising or reviewing the records maintained by DTC, its participants or persons
acting through such participants.
Principal of, and premium, if any, on the Bonds will be payable upon presentation
and surrender thereof at the designated corporate office of the Registrar on the dates, in
the years and amounts established in accordance with the award of the Bonds. Interest on
the Bonds is payable on the dates shown in the Summary Table. The Registrar will mail
interest payments on the Bonds on each interest payment date to the owners of the Bonds
at the addresses listed on the registration books maintained by the Registrar for such
purpose at the close of business on the date which shall be the fifteenth day (whether or
not a business day) of the calendar month next proceeding the applicable payment date,
as described in the Bond Resolution. So long as DTC or its nominee is the registered
owner of the Bonds, payments of principal and interest on the Bonds will be made to
DTC or its nominee.
PRELIMINARY OFFICIAL STATEMENT AND FINAL OFFICIAL
STATEMENT
The County has authorized the preparation and distribution of a Preliminary
Official Statement containing information relating to the Bonds. The Preliminary
Official Statement has been deemed final by the County as required by Rule 15c2 -12 of
the Securities and Exchange Commission. The County will furnish the successful bidder
on the date of closing, with its certificate as to the completeness and accuracy of the
Official Statement.
The Preliminary Official Statement and this Official Notice of Sale and any other
information concerning the proposed financing will be available electronically at
PFMauction's website, www.pfmauction.com. Assistance in obtaining the documents will
be provided by PFMauction customer service at 412 -391 -5555, extension 370 or from
Public Financial Management, Inc., Financial Advisor to the County, 2121 Ponce De
Leon Boulevard, Suite 510, Coral Gables, Florida 33134, Phone 305- 448 -6992, Fax 305-
448 -7131 or email masvidals @pfm.com.
Collier County, Florida Special Obligation Revenue Bonds, Series 2010B - Official Notice of Sale
Page 8
Agenda Item No. 10C
October 26, 2010
Page 58 of 156
The Preliminary Official Statement, when amended to reflect the actual amount of
the Bonds sold, the interest rates specified by the successful bidder and the price or yield
at which the successful bidder will reoffer the Bonds to the public, together with any
other information required by law, will constitute a final "Official Statement" with
respect to the Bonds as that term is defined in Rule 15c2 -12. The County shall furnish at
its expense within seven (7) business days after the Bonds have been awarded to the
successful bidder no more than 200 copies of the final Official Statement. Additional
copies of the Official Statement may be provided at the request and expense of the
winning bidder. If the Bonds are awarded to a syndicate, the County will designate the
senior managing underwriter of the syndicate as its agent for purposes of distributing
copies of the Official Statement to each participating underwriter. Any underwriter
submitting a bid with respect to the Bonds agrees thereby that if its bid is accepted, it
shall accept such designation and shall enter into a contractual relationship with all
participating underwriters for the purpose of assuring the receipt and distribution by each
participating underwriter of the Official Statement.
LEGAL OPINIONS
The Bonds will be sold subject to the opinion of Nabors, Giblin & Nickerson,
P.A., the County's Bond Counsel, as to the legality thereof and such opinion will be
furnished without cost to the purchaser and all bids will be so conditioned. A form of
Bond Counsel's opinion is attached to the Preliminary Official Statement as Appendix E.
Certain matters will be passed on for the County by Jeffrey A. Klatzkow, Esq., County
Attorney and Bryant Miller Olive P.A., the County's Disclosure Counsel.
A legal opinion (or reliance letter thereon) of Bryant Miller Olive P.A., Tampa,
Florida, Disclosure Counsel, and a legal opinion of Jeffrey A. Klatzkow, Esq., County
Attorney, with respect to certain matters concerning the Official Statement will be
furnished without charge to the successful bidder at the time of delivery of the Bonds.
BIDDING PROCEDURE; OFFICIAL BID FORMS
Only electronic bids submitted via PFMacution will be accepted. No other
provider of electronic bidding services will be accepted. No bid delivered in person or by
facsimile directly to the County will be accepted. Bidders are permitted to submit bids
for the Bonds during the bidding time period, provided they are eligible to bid as
described under "GENERAL" above.
Each electronic bid submitted via PFMauction shall be deemed an irrevocable
offer in response to this Official Notice of Sale and shall be binding upon the bidder as if
made by a signed, sealed bid delivered to the County. All bids remain firm until an
award is made. The successful bidder must confirm the details of such bid by a signed
Collier County, Florida Special Obligation Revenue Bonds, Series 20I0B - Official Notice of Sale
Page 9
Agenda Item No. 10C
October 26, 2010
Page 59 of 156
Official Confirmation of Bid Form delivered by fax to Public Financial Management, Inc.
at 305- 448 -7131 no later than one hour after being notified by the County of being the
winning bidder, the original of which must be received by Public Financial Management,
Inc., Financial Advisor to the County on the following business day at 2121 Ponce De
Leon Boulevard, Suite 510, Coral Gables, FL 33134. Failure to deliver the form does not
relieve the bidder of the obligation to purchase the Bonds.
FORM OF BID
Bidders must bid to purchase all maturities of the Bonds. Each bid must specify
(1) an annual rate of interest for each maturity, (2) reoffering price or yield for each
maturity and (3) a dollar purchase price for the entire issue of the Bonds. No more than
one (1) bid from any bidder will be considered.
A bidder must specify the rate or rates of interest per annum (with no more than
one rate of interest per maturity), which the Bonds are to bear, to be expressed in
multiples of 1/8 or 1/20 of 1 %. Any number of interest rates may be named, but the
Bonds of each maturity must bear interest at the same single rate for all bonds of that
maturity.
Each bid for the Bonds must meet the minimum and maximum coupon criteria and
minimum and maximum reoffering price criteria shown in the Summary Table on a
maturity and aggregate basis.
Each bidder must specify, as part of its bid, the prices or yields at which a
substantial amount (i.e., at least 10 %) of the Bonds of each maturity will be offered and
sold to the public. Reoffering prices presented as a part of the bids will not be used in
computing the bidder's true interest cost. As promptly as reasonably possible after bids
are received, the County will notify the successful bidder that it is the apparent winner.
AWARD OF BID
The County expects to award the Bonds to the winning bidder as soon as
practicable after the bids are opened on the sale date. Bids may not be withdrawn prior to
the award. Unless all bids are rejected, the Bonds will be awarded by the County on the
sale date to the bidder whose bid complies with this Official Notice of Sale and results in
the lowest True Interest Cost ( "TIC ") to the County. The lowest TIC will be determined
by doubling the semi -annual interest rate, compounded semi - annually, necessary to
discount the debt service payments from the payment dates to the dated date of the Bonds
and to the aggregate purchase price of the Bonds. If two or more responsible bidders
offer to purchase the Bonds at the same lowest TIC, the County will award the Bonds to
one of such bidders by lot. Only the final bid submitted by any bidder through
Collier County, Florida Special Obligation Revenue Bonds, Series 2010B - Official Notice of Sal.,
Page 10
Agenda Item No. 10C
October 26, 2010
Page 60 of 156
PFMauction will be considered. The right reserved to the County shall be final and
binding upon all bidders with respect to the form and adequacy of any proposal received
and as in its conformity to the terms of this Official Notice of Sale.
RIGHT OF REJECTION
The County reserves the right, in its discretion, to reject any and all bids and to
waive irregularity or informality in any bid.
DELIVERY AND PAYMENT
Delivery of the Bonds will be made by the County to DTC in book -entry only
form, in New York, New York on or about the delivery date shown in the Summary
Table, or such other date agreed upon by the County and the successful bidder. Payment
for the Bonds must be made in Federal Funds or other funds immediately available to the
County at the time of delivery of the Bonds. Any expenses incurred in providing
immediate funds, whether by transfer of Federal Funds or otherwise, will be borne by the
purchaser. The County intends to conduct the closing in Naples, Florida.
RIGHT OF CANCELLATION
The successful bidder will have the right, at its option, to cancel its obligation to
purchase the Bonds if the Registrar fails to authenticate the Bonds and tender the same
for delivery within 60 days from the date of sale thereof, and in such event the successful
bidder will be entitled to the return of the Good Faith Deposit accompanying its bid.
GOOD FAITH DEPOSIT
The successful bidder for the Bonds is required to submit its Good Faith Deposit to the
County in the form of a wire transfer in federal funds not later than 12:30 p.m., Eastern Standard
Time, on the day of the award. If such deposit is not received by that time, the County may
reject such bid and award the Bonds to the bidder that submitted the next best bid in accordance
with the terms of the Official Notice of Sale. Wiring instructions for the Good Faith Deposit are
as follows:
Bank: Fifth Third Bank, N.A.
ABA #: 042000314
Acct. Name: Collier County Board of County Commissioners
Acct. #: 1138577
REF: Series 2010B SO closing
Attention: Dan Tripaldi
Collier County, Florida Special Obligation Revenue Bonds, Series 2010B - Official Notice of Sale
Page 11
Agenda Item No. 10C
October 26, 2010
Page 61 of 156
The Good Faith Deposit so wired will be retained by the County until the delivery
of such Bonds, at which time the good faith deposit will be applied against the purchase
price of such Bonds or the good faith deposit will be retained by the County as partial
liquidated damages in the event of the failure of the successful bidder to take up and pay
for such Bonds in compliance with the terms of the Official Notice of Sale and of its bid.
The County will pay no interest on the good faith deposit. The balance of the purchase
price must be wired in federal funds to the account detailed in the closing memorandum
provided by the County to the successful purchaser, simultaneously with delivery of such
Bonds.
CUSIP NUMBERS
It is anticipated that CUSIP numbers will be printed on the Bonds, but neither
failure to print such numbers on any Bonds nor any error with respect thereto will
constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and
pay for the Bonds. Bond Counsel will not review or express any opinion as to the
correctness of such CUSIP numbers. The policies of the CUSIP Service Bureau will
govern the assignment of specific numbers to the Bonds. The successful bidder will be
responsible for applying for and obtaining CUSIP numbers for the Bonds. All expenses
in relation to the printing of CUSIP numbers on the Bonds will be paid for by the County;
provided, however, that the CUSIP Service Bureau charge for the assignment of said
numbers will be the responsibility of and will be paid for by the successful bidder.
BLUE SKY
The County has not undertaken to register the Bonds under the securities laws of
any state, nor investigated the eligibility of any institution or person to purchase or
participate in the underwriting of the Bonds under any applicable legal investment,
insurance, banking or other laws. By submitting a bid for the Bonds, the successful
bidder represents that the sale of the Bonds in states other than Florida will be made only
under exemptions from registration or, wherever necessary, the successful bidder will
register the Bonds in accordance with the securities laws of the state in which the Bonds
are offered or sold. The County agrees to cooperate with the successful bidder, at the
bidder's written request and expense, in registering the Bonds or obtaining an exemption
from registration in any state where such action is necessary; provided, however, that the
County shall not be required to consent to suit or to service of process in any jurisdiction.
DISCLOSURE OBLIGATIONS OF THE PURCHASER
Section 218.38(1)(b)(2), Florida Statutes, requires that the successful purchaser
file a statement with the County containing information with respect to any fee, bonus or
gratuity paid, in connection with the Bonds, by any underwriter or financial consultant to
Collier County, Florida Special Obligation Revenue Bonds, Series 2010B - Official Notice of Sale
Page 12
Agenda Item No. 10C
October 26, 2010
Page 62 of 156
any person not regularly employed or engaged by such underwriter or consultant.
Receipt of such statement is a condition precedent to the delivery of the Bonds to such
successful bidder.
The winning bidder must (1) complete the Truth -in- Bonding Statement provided
by Bond Counsel (the form of which is attached hereto as Exhibit A) and (2) indicate
whether such bidder has paid any finder's fee to any person in connection with the sale of
the Bonds in accordance with Section 218.386, Florida Statutes.
The successful purchaser will be required to submit to the County prior to closing
a certification to the effect that (i) all of the Bonds have been subject of a bona fide initial
offering to the public (excluding bond houses, brokers or similar persons or organizations
acting in the capacity of underwriters or wholesalers) at prices no higher than those
shown on the inside cover of the Official Statement relating to the Bonds, (ii) to the best
of their knowledge, and based on their records and other information available to them
which they believe to be correct, at least 10 percent of each maturity of the Bonds were
sold to the public (excluding bond houses, brokers or similar persons or organizations
acting in the capacity of underwriters or wholesalers) at initial offering prices not greater
than or yields not lower than the respective prices or yields shown on the inside cover of
the Official Statement, and (iii) at the time they agreed to purchase the Bonds, based
upon their assessment of the then prevailing market conditions, they had no reason to
believe any of the Bonds would be sold to the public (excluding bond houses, brokers or
similar persons or organizations acting in the capacity of underwriters or wholesalers) at
prices greater than or yields lower than the respective prices or yields shown on the inside
cover of the Official Statement.
CONTINUING DISCLOSURE
The County has covenanted to provide ongoing disclosure in accordance with
Rule 15c2 -12 of the Securities and Exchange Commission. The specific nature of the
information to be contained in the annual report and the notices of material events are set
forth in the Continuing Disclosure Certificate which is reproduced in its entirety in
Appendix F attached to the Preliminary Official Statement for the Bonds. The covenants
have been undertaken by the County in order to assist the successful purchaser in
complying with clause (b) (5) of Rule 15c2 -12 of the Securities and Exchange
Commission.
CERTIFICATE
The County will deliver to the purchaser of the Bonds a certificate of an official of
the County, dated the date of delivery of said Bonds, stating that as of the date thereof, to
the best of the knowledge and belief of said official, the Official Statement does not
Collier County, Florida Special Obligation Revenue Bonds, Series 2010B - Official Notice of Sale
Page 13
Agenda Item No. 10C
October 26, 2010
Page 63 of 156
contain an untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements made therein, in light of the circumstances under which
they were made, not misleading, and further certifying that the signatory knows of no
material adverse change in the financial condition of the County.
CHOICE OF LAW
Any litigation or claim arising out of any bid submitted (regardless of the means of
submission) pursuant to this Official Notice of Sale shall be governed by and construed in
accordance with the laws of the State of Florida. The venue situs for any such action
shall be the state courts of the Twentieth Judicial Circuit in and for Collier County,
Florida.
NOTICE OF BIDDERS REGARDING PUBLIC ENTITY CRIMES
A person or affiliate who has been placed on the Convicted Vendor List (as
described in Florida Statutes) following a conviction for a public entity crime may not
submit a bid.
BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA
By:.. /s /Fred W. Coyle
Chairman
Dated: October , 2010
Collier County, Florida Special Obligation Revenue Bonds, Series 2010B - Official Notice of Sale
Page 14
Agenda Item No. 10C
October 26, 2010
Page 64 of 156
EXHIBIT A
TRUTH -IN- BONDING STATEMENT
November _, 2010
Board of County Commissioners
of Collier County, Florida,
Re: Collier County, Florida Special Obligation Refunding Revenue
Bonds, Series 2010B
Dear Commissioners:
The purpose of the following two paragraphs is to furnish, pursuant to the
provisions of Sections 218.385(2) and (3), Florida Statutes, as amended, the truth -in-
bonding statement required thereby, as follows:
(a) The County is proposing to issue $ principal amount of the
above - referenced Bonds for the principal purposes of refunding certain outstanding debt
of the County, and paying certain costs of issuance of the Bonds. This obligation is
expected to be repaid over a period of approximately years. At a true interest cost
of %, total interest paid over the life of the obligation will be approximately —.
(b) The Bonds shall be limited obligations of the County and secured by a
covenant to appropriate in its annual budget, by amendment, if necessary, such amounts
of the total revenues of the County derived from any source whatsoever that are allocated
to and accounted for in certain funds of the County described in the Preliminary Official
Statement for the Bonds, other than revenues generated from ad valorem taxation on real
or personal property, and which are legally available to make payments on the Bonds.
The foregoing is provided for information purposes only and shall not affect or
control the actual terms and conditions of the Bonds.
Very truly yours,
Underwriter
By:
Authorized Signatory
Collier County, Florida Special Obligation Revenue Bonds, Series 2010B - Official Notice of Sale
Page 15
Agenda Item No. 10C
October 26, 2010
Page 65 of 156
OFFICIAL CONFIRMATION OF BID FORM
Collier County, Florida
Special Obligation Refunding Revenue Bonds, Series 2010B
The undersigned hereby offer to purchase all of the Collier County, Florida
Special Obligation Refunding Revenue Bonds, Series 2010B (the "Bonds "), to be dated
as of the date of delivery (expected to be November 18, 2010), described in the attached
Official Notice of Sale and the Preliminary Official Statement referred to therein, which
by reference is made part of this bid, for all but not less than all of said Bonds and will
pay therefor, at the time of delivery, in immediately available Federal Reserve Funds
at the following rates per annum: Dollars ($ ), bearing interest
Reoffering
Year Principal* Interest Price or
October 1 Amount Rate Yield
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
* Preliminary, subject to change.
In accordance with the attached Official Notice of Sale, if we are selected as the
winning bidder, we will provide a good faith deposit by wire transfer in federal funds no
later than 12:30 p.m. on the date of the award in the amount of and
00 /100 Dollars ($ _� as described in the attached Official Notice of Sale.
MISCELLANOUS
This proposal is not subject to any conditions not expressly stated herein or in the
attached Official Notice of Sale. Receipt and review of the Preliminary Official
Statement relating to the Bonds is hereby acknowledged. The names of the underwriters
or member of the account or joint bidding account, if any, who are associated for the
purpose of this Proposal are listed either below or on a separate sheet attached hereto.
Collier County, Florida Special Obligation Revenue Bonds, Series 2010B - Official Notice of Sale
Page 16
Agenda Item No. 10C
October 26, 2010
Page 66 of 156
TRUTH IN BONDING STATEMENT
Prior to an award, the successful bidder must complete, sign and deliver with this
Official Confirmation of Bid Form the Truth in Bonding Statement which is attached to
the Official Notice of Sale as Exhibit A. The County reserves the right to assist the
bidder in correcting any inconsistencies or inaccuracies set forth in such Truth in
Bonding Statement. The County may waive any inconsistencies or inaccuracies relating
to such Statements and any such waived inconsistencies or inaccuracies shall not
adversely affect the bid.
Furthermore, pursuant to Section 218.386, Florida Statutes, the names, addresses
and estimated amounts of compensation of any person who has entered into an
understanding with the underwriters or, to the managing underwriter's knowledge, the
County, or both, for any paid or promised compensation or valuable consideration,
directly or indirectly, expressly or implied, to act solely as an intermediary between the
County and managing underwriter or who exercises or attempts to exercise any influence
to effect any transaction in the purchase of the Bonds are set forth below in the space
provided. If no information is provided below, the County shall presume no
compensation was or will be paid.
Senior Manager:
Authorized Signature:
Printed Name:
Address
City State Zip Code
Telephone Number
Facsimile Number
Collier County, Florida Special Obligation Revenue Bonds, Series 2010B - Official Notice of Sale
Page 17
Agenda Item No. 10C
October 26, 2010
Page 67 of 156
CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the "Disclosure Certificate ") is executed and delivered by
Collier County, Florida (the "Issuer ") in connection with the issuance of its $ Special
Obligation Refunding Revenue Bonds, Series 2010B (the "Bonds "). The Bonds are being issued pursuant
to the Resolution No. 2010- adopted by the Board of County Commissioners of the Issuer on
October 26, 2010, as amended and supplemented from time to time (the "Resolution ").
SECTION 1. PURPOSE OF THE DISCLOSURE CERTIFICATE. 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 the continuing disclosure
requirements of Securities and Exchange Commission Rule 15c2 -12.
SECTION 2. DEFINITIONS. In addition to the definitions set forth in the Resolution which
apply to any capitalized term used in this 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 Owner" 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 nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for
federal income tax purposes.
"Dissemination Agent" shall mean the Issuer, or any successor Dissemination Agent designated
in writing by the Issuer and which has filed with the Issuer a written acceptance of such designation.
"Listed Events" shall mean any of the events listed in Section 5(a) of this Disclosure Certificate.
"Participating Underwriters" shall mean the original underwriters of the Bonds required to
comply with the Rule in connection with offering of the Bonds.
"Repository" shall mean each entity authorized and approved by the Securities and Exchange
Commission from time to time to act as a repository for purposes of complying with the Rule. The
Repositories approved by the Securities and Exchange Commission may be found by visiting the
Securities and Exchange Commission's website at httn: / /wv�Tw.sec govZinfo/municipal/nrmsir.htm As of
the date hereof, the Repository recognized by the Securities and Exchange Commission for such purpose
is the Municipal Securities Rulemaking Board, which currently accepts continuing disclosure submissions
through its Electronic Municipal Market Access ( "EMMA ") web portal at "http: / /emma.msrb ore."
"Rule" shall mean the continuing disclosure requirements of Rule 15c2 -12 adopted by the
Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be
amended from time to time.
"State" shall mean the State of Florida.
{25694/002/00469294.DOCv3l 1
Agenda Item No. 10C
October 26, 2010
Page 68 of 156
SECTION 3. PROVISION OF ANNUAL REPORTS.
(a) The Issuer shall, or shall cause the Dissemination Agent to, not later than each
April 30th, commencing April 30, 2011 with respect to the report for the 2010 fiscal year, provide to any
Repository, in the electronic format as required and deemed acceptable by such 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; provided 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 provided, further, in such event unaudited financial statements are required to be delivered
as part of the Annual Report in accordance with Section 4(a) below. 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 5(c).
(b) Not later than fifteen (15) Business Days prior to the date set forth in (a) above,
the Issuer shall provide the Annual Report to the Dissemination Agent (if other than the Issuer). If the
Issuer is unable to provide to any Repository an Annual Report as required in subsection (a), the Issuer
shall send a notice to any Repository, in the electronic format as required and deemed acceptable by any
such Repository in substantially the form attached as Exhibit A.
(c) The Dissemination Agent shall:
(i) determine each year prior to the date for providing the Annual Report the name
and address of any Repository; and
(ii) 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 any Repository to which it was provided.
SECTION 4. CONTENT OF ANNUAL REPORTS. The Issuer's Annual Report shall contain or
include by reference the following:
(a) the audited financial statements of the Issuer for the prior fiscal year, prepared in
accordance with generally accepted accounting principles 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 dated 2010 (the "Official
Statement "), and the audited financial statements shall be filed in the same manner as the Annual Report
when they become available; and
(b) updates to the following historical financial information and operating data in tabular
form in the Official Statement in the tables entitled "COLLIER COUNTY, FLORIDA HISTORICAL NON -
AD VALOREM REVENUES IN GENERAL FUND AND UNINCORPORATED AREA MUNICIPAL
SERVICES TAXING DISTRICT FUND" "COLLIER COUNTY, FLORIDA OTHER OBLIGATIONS
PAYABLE FROM NON -AD VALOREM REVENUES" and "COLLIER COUNTY, FLORIDA COMBINED
GENERAL FUND AND MSTD REVENUES, EXPENDITURES AND FUND BALANCE."
(25694/002/00469294.DOCv3) 2
Agenda Item No. 10C
October 26, 2010
Page 69 of 156
The information provided under Section 4(b) may be included by specific reference to other
documents, including official statements of debt issues of the Issuer or related public entities, which are
available to the public on the Repository's Internet Website or filed with the Securities and Exchange
Commission. The Issuer shall clearly identify each such other document so included by reference.
SECTION 5. REPORTING OF SIGNIFICANT EVENTS.
(a) Pursuant to the provisions of this Section 5, the Issuer shall give, or cause to be
given, notice of the occurrence of any of the following events with respect to the Bonds, if material:
1. principal and interest payment delinquencies;
2. non - payment related defaults;
3. unscheduled draws on the debt service reserves reflecting financial difficulties;
4. unscheduled draws on credit enhancements reflecting financial difficulties;
5. substitution of credit or liquidity providers, or their failure to perform;
6. adverse tax opinions or events affecting the tax - exempt status of the Bonds;
7. modifications to rights of the holders of the Bonds;
8. Bond calls (other than scheduled mandatory redemption);
9. defeasances;
10. release, substitution, or sale of property securing repayment of the Bonds;
11. ratings changes; and
12. notice of any failure on the part of the Issuer to meet the requirements of Section
3 hereof.
(b) Whenever the Issuer obtains knowledge of the occurrence of a Listed Event, the
Issuer shall promptly determine if such event would be material under applicable federal securities laws;
provided, however, that any event under clauses 1, 3, 4, 5, 6 and 11 above shall always be deemed to be
material.
(c) If the Issuer determines that knowledge of the occurrence of a Listed Event
would be material under applicable federal securities laws, the Issuer shall promptly file a notice of such
occurrence with any Repository, in the electronic format as required and deemed acceptable by any such
Repository.
SECTION 6. IDENTIFYING INFORMATION. In accordance with the Rule, all disclosure filings
submitted in pursuant to this Disclosure Certificate to any Repository must be accompanied by
125694/002/00469294. DOCv3 )
Agenda Item No. 10C
October 26, 2010
Page 70 of 156
identifying information as prescribed by the Repository. Such information may include, but not be
limited to:
(a) the category of information being provided;
(b) the period covered by any annual financial information, financial statement or
other financial information or operation data;
(c) the issues or specific securities to which such documents are related (including
CUSIPs, issuer name, state, issue description /securities name, dated date,
maturity date, and /or coupon rate);
(d) the name of any obligated person other than the Issuer;
(e) the name and date of the document being submitted; and
(f) contact information for the submitter.
SECTION 7. TERMINATION OF REPORTING OBLIGATION. The Issuer's obligations under this
Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of
all of the Bonds or if the Rule is repealed or no longer in effect. If such termination occurs prior to the
final maturity of the Bonds, the Issuer shall give notice of such termination in the same manner as for a
Listed Event under Section 5(c).
SECTION 8. DISSEMINATION AGENT. The Issuer may, from time to time, appoint or engage a
Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may
discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent.
The Dissemination Agent shall not be responsible in any manner for the content of any notice or report
prepared by the Issuer pursuant to this Disclosure Certificate. The initial Dissemination Agent shall be
the Issuer.
SECTION 9. AMENDMENT; WAIVER. 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 5(a), 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, nature or status of the Issuer, 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 or Beneficial
Owners of the Bonds in the same manner as provided in the Resolution for amendments to the
Resolution with the consent of holders or Beneficial Owners, or (ii) does not, in the opinion of
nationally recognized bond counsel, materially impair the interests of the holders or Beneficial
Owners of the Bonds.
{256941002/00469294.DOCv3) 4
Agenda Item No. 10C
October 26, 2010
Page 71 of 156
Notwithstanding the foregoing, the Issuer shall have the right to adopt amendments to this
Disclosure Certificate necessary to comply with modifications to and interpretations of the provisions of
the Rule as announced by the Securities and Exchange Commission from time to time.
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 5(c), 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.
SECTION 10. 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.
SECTION 11. 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
necessary and appropriate, including seeking mandamus or specific performance by court order, to cause
the Issuer to comply with its obligations under this Disclosure Certificate; provided, however, the sole
remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with the
provisions of this Disclosure Certificate shall be an action to compel performance. A default under this
Disclosure Certificate shall not be deemed an Event of Default under the Resolution.
SECTION 12. DUTIES, IMMUNITIES AND LIABILITIES OF DISSEMINATION AGENT. The
Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate,
and the Issuer agrees to indemnify and save the Dissemination Agent, its officers, directors, employees
and agents, harmless against loss, expense and liabilities which it may incur arising out of or in the
exercise or performance of its powers and duties hereunder, including the costs and expenses (including
attorneys fees) of defending against any claim of liability, but excluding liabilities due to the
Dissemination Agent's negligence or willful misconduct. The obligations of the Issuer under this Section
shall survive resignation or removal of the Dissemination Agent and payment of the Bonds.
(25694/002/00469294.DOCv3) 5
Agenda Item No. 10C
October 26, 2010
Page 72 of 156
SECTION 13. BENEFICIARIES. 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.
Dated as of 2010
COLLIER COUNTY, FLORIDA
By:
Approved as to form and legal sufficiency:
County Attorney
{25694/002/00469294.DOCv3}
Chairman of the Board of
County Commissioners
Agenda Item No. 10C
October 26, 2010
Page 73 of 156
EXHIBIT A
NOTICE OF FAILURE TO FILE ANNUAL REPORT
Name of Issuer: Collier County, Florida
Name of Bond Issue: Special Obligation Refunding Revenue Bonds, Series 2010B
Date of Issuance: 2010
NOTICE IS HEREBY GIVEN that the Issuer has not provided an Annual Report with respect to the
above -named Bonds as required by Sections 3 and 4(b) of the Continuing Disclosure Certificate dated as
of 2010. The Issuer anticipates that the Annual Report will be filed by
Dated:
COLLIER COUNTY, FLORIDA
By:_
Nam
Title:
{25694/002/00469294.DOCv3) 7
Agenda Item No. 10C
October 26, 2010
Page 74 of 156
PRELIMINARY OFFICIAL STATEMENT DATED , 2010
NEW ISSUE — Book -Entry Only
In the opinion of Nabors, Giblin & Nickerson, P.A., Tampa, Florida, Bond Counsel, interest on the Series
2010B Bonds is, under existing statutes, regulations, rulings and court decisions, (a) excludable from gross income
of the owners thereof for federal income tax purposes except as otherwise described herein under the caption "TAX
EXEMPTION" and (b) not an item of tax preference for purposes of the federal alternative minimum tax imposed
on individuals and corporations, however, it should be noted that with respect to certain corporations, such interest
is taken into account in determining adjusted current earnings for the purposes of computing the alternative in
minimum tax. See "TAX EXEMPTION" herein for a discussion of Bond Counsel's opinion.
COLLIER COUNTY, FLORIDA
Special Obligation Refunding Revenue Bonds, Series 2010B
Dated: Date of Delivery
Due: October, 1, as shown on inside cover
The Collier County, Florida Special Refunding Obligation Revenue Bonds, Series 2010B (the
"Series 2010B Bonds ") are being issued as fully registered bonds, in denominations of $5,000 or any
integral multiple thereof. Interest on the Series 2010B Bonds is payable semiannually on each April l and
October 1, commencing April 1, 2011, and will be payable by check or draft of U.S. Bank National
Association, Miami, Florida, as Paying Agent, mailed to the holder at his or her address, as shown on the
registration books of Collier County, Florida (the "County ") maintained by U.S. Bank National
Association, Miami, Florida, as Registrar, as of the close of business on the fifteenth day of the calendar
month (whether or not a business day) next preceding the applicable interest payment date; provided,
however, at the request of any holder of Series 2010B Bonds, interest payments may be made by bank
wire transfer to the account designated by such holder. Principal and premium, if any, of the Series
2010B Bonds is payable to the holder thereof upon presentation and surrender, when due, at the office of
the Paying Agent. Upon initial issuance, the Series 2010B Bonds will be registered in the name of and
held by Cede & Co. as nominee for The Depository Trust Company ( "DTC "), an automated depository for
securities and a clearinghouse for securities transactions. So long as DTC or Cede & Co. is the registered
owner of the Series 2010B Bonds, payments of the principal of, premium, if any, and interest on the Series
2010B Bonds will be mailed directly to DTC or Cede & Co., which is to remit such payments to the
Participants (as defined herein), which in turn are to remit such payments to the Beneficial Owners (as
defined herein) of the Series 2010B Bonds. See "DESCRIPTION OF THE SERIES 2010B BONDS — Book -
Entry Only System" herein.
The Series 2010B Bonds are not subject to redemption prior to their stated maturities.
The Series 2010B Bonds are issued pursuant to and under the Constitution and laws of the State
of Florida, Chapter 125, Florida Statutes, and other applicable provisions of law (collectively, the "Act "),
and pursuant to Resolution No. 2010 -_ adopted by the Board on October 26, 2010, as it may be
amended and supplemented from time to time (the "Resolution ").
The Series 2010B Bonds are being issued to provide funds, together with other legally available
moneys of the County, if any, sufficient to (i) refund all of the County's outstanding Capital Improvement
Revenue Bonds, Series 2002, and (ii) pay certain costs and expenses relating to the issuance of the Series
2010B Bonds.
125694/002/00469358.DOCv4}
Agenda Item No. 10C
October 26, 2010
Page 75 of 156
Pursuant to the Resolution, the County has covenanted and agreed, subject to certain restrictions
and limitations, to appropriate in its annual budget, by amendment, if necessary, from Non -Ad Valorem
Revenues amounts sufficient to pay the principal of and interest on the Series 2010B Bonds when due in
the manner and to the extent provided in the Resolution and described under "SECURITY FOR THE
SERIES 2010B BONDS" herein.
THE SERIES 2010B BONDS SHALL NOT BE OR CONSTITUTE GENERAL OBLIGATIONS OR
INDEBTEDNESS OF THE COUNTY AS "BONDS" WITHIN THE MEANING OF ANY
CONSTITUTIONAL OR STATUTORY PROVISION, BUT SHALL BE SPECIAL OBLIGATIONS OF THE
COUNTY, PAYABLE SOLELY FROM AMOUNTS BUDGETED AND APPROPRIATED BY THE
COUNTY FROM NON -AD VALOREM REVENUES IN ACCORDANCE WITH THE RESOLUTION. NO
HOLDER OF ANY SERIES 2010B BOND SHALL HAVE THE RIGHT TO COMPEL THE EXERCISE OF
ANY AD VALOREM TAXING POWER TO PAY SUCH SERIES 2010B BOND, OR BE ENTITLED TO
PAYMENT OF SUCH SERIES 2010B BOND FROM ANY MONEYS OF THE COUNTY EXCEPT FROM
THE NON -AD VALOREM REVENUES IN THE MANNER AND TO THE EXTENT PROVIDED IN THE
RESOLUTION.
This cover page contains certain information for quick reference only. It is not a summary of
this issue. Investors must read the entire Official Statement to obtain information essential to the
making of an informed investment decision.
The Series 2010B Bonds are offered when, as, and if issued and received by the Underwriter, subject to the
opinion on certain legal matters relating to their issuance by Nabors, Giblin & Nickerson, P.A., Tampa, Florida,
Bond Counsel. Certain legal matters will be passed upon for the County by Jeffrey A. Klatzkow, Esq., County
Attorney and by Bryant Miller Olive P.A., Tampa, Florida, Disclosure Counsel. Public Financial Management,
Inc., Coral Gables, Florida, is serving as Financial Advisor to the County. It is expected that the Series 2010B
Bonds in definitive form will be available for delivery to the Underwriter in New York, New York at the facilities of
DTC on or about December J 2010.
EIectronic bids for the Series 2010B Bonds will be received via Public Financial Management's
PFMauction website as described in the Official Notice of Sale.
Dated: J 2010
*Preliminary, subject to change.
{25694/002/00469358.DOCv4}
Maturity
(October 1)
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
$ *
COLLIER COUNTY, FLORIDA
Special Obligation Refunding Revenue Bonds, Series 2010B
MATURITIES, AMOUNTS, INTEREST RATES,
PRICES OR YIELDS AND INITIAL CUSIP NUMBERS
$ * Serial Bonds
Interest Price or
Amount* Rate Yield
$
Agenda Item No. 10C
October 26, 2010
Page 76 of 156
Initial
CUSIP
Numbers**
* Preliminary, subject to change.
** The County is not responsible for the use of the CUSIP Numbers referenced herein nor is any
representation made by the County as to their correctness. The CUSIP Numbers provided herein
are included solely for the convenience of the readers of this Official Statement.
125694/002/00469358.DOCv41
Agenda Item No. 10C
October 26, 2010
Page 77 of 156
RED HERRING LANGUAGE:
This Preliminary Official Statement and the information contained herein are subject to completion or
amendment. Under no circumstances shall this Prelimirnaiy Official Statement constitute an offer to sell
or a solicitation of an offer to buy, nor shall. there be any sale of the Series 2010B Bonds in any jurisdiction
in which such offer, solicitation or sale would be unlawful prior to registration, qualification or
exemption under the securities lags of such jurisdiction. The County has deemed this Preliminary
Official Statement "final," except for certain permitted omissions, within the contemplation of Rule 15c2-
12 promulgated by the Securities and Exchange Commission.
125694/002/00469358.DOCv41
Agenda Item No. 10C
October 26, 2010
Page 78 of 156
COLLIER COUNTY, FLORIDA
Government Complex
3301 East Tamiami Trail
Naples, Florida 34112
(239) 252 -8097
BOARD OF COUNTY COMMISSIONERS
Fred W. Coyle, Chairman
Frank Halas, Vice Chair( ")
Jim Coletta, Commissioner
Tom Henning, Commissioner
Donna Fiala, Commissioner
COUNTY MANAGER
Leo E. Ochs, Jr.
CLERK OF THE CIRCUIT COURT OF COLLIER COUNTY
AND CHIEF FINANCIAL OFFICER
Dwight E. Brock, Esq.
DIRECTOR OF FINANCE AND ACCOUNTING
Crystal K. Kinzel
COUNTY ATTORNEY
Jeffrey A. Klatzkow, Esq.
BOND COUNSEL
Nabors, Giblin & Nickerson, P.A.
Tampa, Florida
DISCLOSURE COUNSEL
Bryant Miller Olive P.A.
Tampa, Florida
FINANCIAL ADVISOR
Public Financial Management, Inc.
Coral Gables, Florida
Frank Halas will not be seeking re- election, therefore on December 14, 2010, a new Vice Chair
will be appointed, and a new Commissioner will also be elected to the Board.
{25694/002/00469358.DOCv4}
Agenda Item No. 10C
October 26, 2010
Page 79 of 156
No dealer, broker, salesman or other person has been authorized by the County or the
Underwriter to give any information or to make any representations in connection with the Series 2010B
Bonds, other than as contained in this Official Statement, and, if given or made, such information or
representations must not be relied upon as having been authorized by the County. This Official
Statement does not constitute an offer to sell nor the solicitation of an offer to buy, nor shall there be any
sale of the Series 2010B 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, DTC and other sources that
are believed to be reliable. The Underwriter listed on the cover page hereof has reviewed the information
in this Official Statement in accordance with and as part of its responsibilities to investors under the
federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter
does not guarantee the accuracy or completeness of such information. The information and expressions
of opinion stated herein are subject to change, and neither the delivery of this Official Statement nor any
sale made hereunder shall create, under any circumstances, any implication that there has been no
change in the matters described herein since the date hereof.
IN CONNECTION WITH THIS OFFERING OF THE SERIES 2010B BONDS, THE
UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN
THE MARKET PRICE OF SUCH SERIES 2010B BONDS AT LEVELS ABOVE THAT WHICH MIGHT
OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE
DISCONTINUED AT ANY TIME.
All summaries herein of documents and agreements are qualified in their entirety by reference to
such documents and agreements, and all summaries herein of the Series 2010B Bonds are qualified in
their entirety by reference to the form thereof included in the aforesaid documents and agreements.
NO REGISTRATION STATEMENT RELATING TO THE SERIES 2010B BONDS HAS BEEN
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION (THE "COMMISSION') OR WITH
ANY STATE SECURITIES COMMISSION. IN MAKING ANY INVESTMENT DECISION, INVESTORS
MUST RELY ON THEIR OWN EXAMINATIONS OF THE COUNTY AND THE TERMS OF THE
OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THE SERIES 2010B BONDS HAVE
NOT BEEN APPROVED OR DISAPPROVED BY THE COMMISSION OR ANY STATE SECURITIES
COMMISSION OR REGULATORY AUTHORITY. THE FOREGOING AUTHORITIES HAVE NOT
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY
REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE.
{25694/002/00469358.DOCv4}
TABLE OF CONTENTS
Agenda Item No. 10C
October 26, 2010
Page 80 of 156
Page
INTRODUCTION......................................................................................................................... ..............................1
PLANOF REFUNDING .............................................................................................................. ..............................2
DESCRIPTION OF THE SERIES 2010B BONDS ...................................................................... ..............................3
General............................................................................................................................ ............................... 3
Book -Entry Only System ............................................................................................... ..............................3
Interchangeability, Negotiability and Transfer .......................................................... ..............................6
Series 2010B Bonds Mutilated, Destroyed, Stolen or Lost ........................................ ..............................7
NoEarly Redemption .................................................................................................... ..............................7
SECURITY FOR THE SERIES 2010B BONDS ........................................................................... ..............................8
General............................................................................................................................ ............................... 8
No Reserve for the Series 2010B Bonds ....................................................................... ..............................9
Anti- Dilution Test .......................................................................................................... ..............................9
GENERAL INFORMATION REGARDING NON -AD VALOREM REVENUES ............... .............................10
General............................................................................................................................ .............................10
Taxes................................................................................................................................ .............................11
Intergovernmental Revenues ....................................................................................... .............................14
Licenses, Permits and Impact Fees .............................................................................. .............................18
Chargesfor Services ...................................................................................................... .............................19
Finesand Forfeitures ..................................................................................................... .............................20
Interest............................................................................................................................ .............................20
Miscellaneous Revenues ............................................................................................... .............................20
CERTAINFINANCIAL MATTERS ........................................................................................ ...............................
23
Financial and Operating Plan (Budget) and Capital Improvement Planning Policy ........................23
Financial Reporting and Annual Audit ...................................................................... .............................24
General Fund and Unincorporated Area Municipal Services Taxing District Fund ........................24
Classification of Local Government Expenditures ................................................... .............................28
RETIREMENT PLAN AND OTHER POST EMPLOYMENT BENEFITS ............................ .............................29
CountyOPEB ................................................................................................................. .............................29
Sheriff's OPEB ................................................................................................................ .............................31
FLORIDA CONSTITUTIONAL LIMITATIONS AND PROPERTY TAX REFORM .. ........ .............................32
ESTIMATED SOURCES AND USES OF FUNDS ................................................................... .............................36
DEBT SERVICE SCHEDULE ..................................................................................................... .............................37
INVESTMENTPOLICY .............................................................................................................. .............................38
LEGALMATTERS ....................................................................................................................... .............................39
LITIGATION.............................................................................................................................. ...............................
40
DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS .............................. .............................40
TAXEXEMPTION ..................................................................................................................... ...............................
41
Opinionof Bond Counsel ............................................................................................. .............................41
Internal Revenue Code of 1986 .................................................................................... .............................41
Collateral Tax Consequences ....................................................................................... .............................42
OtherTax Matters .......................................................................................................... .............................42
Tax Treatment of Original Issue Discount ................................................................. .............................42
Tax Treatment of Bond Premium ................................................................................ .............................43
VERIFICATION OF ARITHMETICAL COMPUTATIONS ................................................... .............................43
125694/002/00469358.DOCv41
Agenda Item No. 10C
October 26, 2010
Page 81 of 156
RATINGS.................................................................................................................................... ............................... 43
FINANCIALADVISOR .............................................................................................................. .............................44
AUDITED FINANCIAL STATEMENTS ................................................................................ ............................... 44
ENFORCEABILITY OF REMEDIES .......................... ............................... ......... .............................44
........................
CONTINUINGDISCLOSURE ................................................................................................... .............................45
UNDERWRITING....................................................................................................................... .............................45
CONTINGENTFEES ................................................................................................................ ............................... 45
ACCURACY AND COMPLETENESS OF OFFICIAL STATEMENT ................................... .............................46
AUTHORIZATION OF OFFICIAL STATEMENT .................................................................. .............................47
Appendices
APPENDIX A - General Information Concerning Collier County, Florida
APPENDIX B - Form of the Resolution
APPENDIX C -Audited Financial Statements for the Fiscal Year Ended September 30, 2009
APPENDIX D - Form of Opinion of Bond Counsel
APPENDIX E - Form of Continuing Disclosure Certificate
{25694/002/00469358.DOCv4} li
Agenda Item No. 10C
October 26, 2010
Page 82 of 156
OFFICIAL STATEMENT
Relating to
COLLIER COUNTY, FLORIDA
Special Obligation Refunding Revenue Bonds, Series 2010B
INTRODUCTION
The purpose of this Official Statement, including the cover page and appendices, is to set forth
information concerning Collier County, Florida (the "County ") and the Collier County, Florida Special
Obligation Refunding Revenue Bonds, Series 2010B (the "Series 2010B Bonds "), in connection with the
sale of the Series 2010B Bonds.
The County was established in 1923 by the legislature of the State of Florida (the "State ") from
portions of Lee and Monroe Counties. Its territorial limits, as they presently exist, contain approximately
2,026 square miles. In terms of land area, it is the largest county in the State. The County is located on the
southwest coast of the Florida peninsula directly west of the Miami -Fort Lauderdale area. In 2009, the
County had an estimated population of 333,032. Principal industries within the County include
wholesale and retail trade, tourism, agriculture, forestry, fishing, cattle ranching and construction. Part of
the Everglades National Park, the United States' only subtropical national park, comprises a portion of
the County. See "APPENDIX A — General Information Concerning Collier County, Florida" attached
hereto for more information about the County.
The Series 2010B Bonds are issued pursuant to and under the Constitution and laws of the State,
Chapter 125, Florida Statutes, and other applicable provisions of law (collectively, the "Act "), and
pursuant to Resolution No. 2010- adopted by the Board on October 26, 2010, as it may be amended
and supplemented from time to time (the "Resolution "). See "APPENDIX B — Form of the Resolution"
attached hereto.
The Series 2010B Bonds are being issued to provide funds, together with other legally available
moneys of the County, if any, sufficient to (i) refund all of the County's outstanding Capital Improvement
Revenue Bonds, Series 2002 (the "Refunded Bonds "), and (ii) pay certain costs and expenses relating to the
issuance of the Series 2010B Bonds.
Pursuant to the Resolution, the County has covenanted and agreed, subject to certain restrictions
and limitations, to appropriate in its annual budget, by amendment, if necessary, from Non -Ad Valorem
Revenues amounts sufficient to pay principal of and interest on the Series 2010B Bonds when due in the
manner and to the extent provided in the Resolution and described in "SECURITY FOR THE SERIES
2010B BONDS" herein and "APPENDIX B — Form of the Resolution" attached hereto.
THE SERIES 2010B BONDS SHALL NOT BE OR CONSTITUTE GENERAL OBLIGATIONS OR
INDEBTEDNESS OF THE COUNTY AS "BONDS" WITHIN THE MEANING OF ANY
CONSTITUTIONAL OR STATUTORY PROVISION, BUT SHALL BE SPECIAL OBLIGATIONS OF THE
* Preliminary, subject to change.
125694/002/00469358.DOCv4}
Agenda Item No. 10C
October 26, 2010
Page 83 of 156
COUNTY, PAYABLE SOLELY FROM AMOUNTS BUDGETED AND APPROPRIATED BY THE
COUNTY FROM NON -AD VALOREM REVENUES IN ACCORDANCE WITH THE RESOLUTION. NO
HOLDER OF ANY SERIES 2010B BOND SHALL HAVE THE RIGHT TO COMPEL THE EXERCISE OF
ANY AD VALOREM TAXING POWER TO PAY SUCH SERIES 2010B BOND, OR BE ENTITLED TO
PAYMENT OF SUCH SERIES 2010B BOND FROM ANY MONEYS OF THE COUNTY EXCEPT FROM
THE NON -AD VALOREM REVENUES IN THE MANNER AND TO THE EXTENT PROVIDED IN THE
RESOLUTION.
The County has covenanted to provide certain continuing disclosure information pursuant to
Rule 15c2 -12 of the Securities and Exchange Commission relating to the Series 2010B Bonds. See
"CONTINUING DISCLOSURE" herein.
Capitalized terms used but not otherwise defined herein have the same meaning ascribed thereto
in the Resolution unless the context would clearly indicate otherwise. Complete descriptions of the terms
and conditions of the Series 2010B Bonds are set forth in the Resolution, a form of which is attached as
APPENDIX B to this Official Statement. The descriptions of the Series 2010B Bonds, the documents
authorizing and securing the same, and the information from various reports and statements contained
herein are not comprehensive or definitive. All references herein to such documents, reports and
statements are qualified by the entire, actual content of such documents, reports and statements. A copy
of the Resolution and all documents of the County referred to herein may be obtained from Dwight E.
Brock, Esq., Clerk of Circuit Court and Chief Financial Officer of Collier County, Collier County
Courthouse Annex, 3301 East Tamiami Trail East, 2nd Floor, Naples, Florida 34112, Phone (239) 252 -2745.
PLAN OF REFUNDING
The Refunded Bonds originally financed and refinanced the acquisition, construction and
equipping of various capital projects, including: voting machines, public safety improvements, general
governmental buildings, improvements to the county jail, parks and recreation improvements and library
improvements (the "2002 Project ").
The County has determined that it can achieve a present value net debt service savings by
providing for the current refunding of all of the Refunded Bonds. The Refunded Bonds will be called for
redemption on October 1, 2011 at a redemption price of 101% of the principal amount to be redeemed,
plus accrued interest thereon.
Upon delivery of the Series 2010B Bonds, U.S. Bank National Association, Miami, Florida (the
"Escrow Agent ") will enter into an Escrow Deposit Agreement (the "Escrow Agreement ") with the County
relating to the Refunded Bonds. The Escrow Agreement will create an irrevocable escrow deposit fund
(the "Escrow Deposit Fund ") which will be held by the Escrow Agent, and the money and securities held
therein are to be applied to the payment of principal of, interest and redemption premium, if any, on the
Refunded Bonds, as the same become due and payable and at redemption prior to maturity. The
refunding will be accomplished through the issuance of the Series 2010B Bonds and the deposit of a
portion of the proceeds thereof, together with other legally available moneys, if any, into the Escrow
Deposit Fund. Substantially all of such money is expected to be invested in Obligations of the United
States of America, as such term is defined in Resolution No. 85 -107 adopted by the County on April 30,
1985, as amended and supplemented from time to time (the 'Refunded Bonds Resolution "). The
maturing principal amount of and interest on the Obligations of the United States of America and any
{25694/002/00469358.DOCv41 2
Agenda Item No. 10C
October 26, 2010
Page 84 of 156
cash held in the Escrow Deposit Fund is expected to be sufficient to pay the principal of, interest on and
redemption premium with respect to the Refunded Bonds, and will be pledged solely for the benefit of
the holders of the Refunded Bonds, and will not be available for payment of debt service on the Series
2010B Bonds.
The initial cash deposit plus principal and interest on the Obligations of the United States of
America in the Escrow Deposit Fund will be sufficient to pay the Refunded Bonds to their respective
redemption dates according to the schedules prepared by Public Financial Management, Inc., as verified
by [Causey Demgen & Moore, Inc.] (the "Verification Agent "). See "VERIFICATION OF
ARITHMETICAL COMPUTATIONS" herein.
In reliance upon the above - referenced schedules and verification, at the time of delivery of the
Series 2010B Bonds, Bond Counsel shall deliver an opinion to the County to the effect that the Refunded
Bonds have been legally defeased and are no longer outstanding for purposes of the Refunded Bonds
Resolution.
DESCRIPTION OF THE SERIES 2010B BONDS
General
The Series 2010B Bonds shall be issued only in fully registered form without coupons in principal
denominations of $5,000 each or any integral multiple thereof. The Series 2010B Bonds are dated as of
their date of delivery and bear interest at the rates per annum and mature on the dates set forth on the
inside cover page hereof. Interest on the Series 2010B Bonds is payable semiannually on each April 1 and
October 1, commencing October 1, 2011 (the "Interest Dates "). Interest payable on the Series 2010B Bonds
on any Interest Date shall be paid by check or draft of U.S. Bank National Association, Miami, Florida as
Paying Agent mailed to the holder at his or her address, as shown on the registration books of the County
maintained by U. S. Bank National Association, Miami, Florida as Registrar, as of the close of business on
the fifteenth (15th) day of the calendar month (whether or not a business day) next preceding the
applicable Interest Date (the "Record Date "); provided, however, at the request of any holder of Series
2010B Bonds, interest payments may be made by bank wire transfer to the account designated by such
holder. Principal and premium, if any, of the Series 2010B Bonds is payable to the holder thereof upon
presentation and surrender, when due, at the office of the Paying Agent.
The Series 2010B Bonds will be issued initially as book -entry obligations and held by The
Depository Trust Company ( "DTC ") as securities depository. The ownership of one fully registered Series
2010B Bond for each maturity as set forth on the inside cover page hereof, in the appropriate aggregate
principal amount of such maturity, will be registered in the name of Cede & Co., as nominee for DTC.
For more information regarding DTC and DTC's Book -Entry System, see the subheading "— Book -Entry
Only System" which immediately follows.
Book -Entry Only System
THE FOLLOWING INFORMATION CONCERNING DTC AND DTC'S BOOK -ENTRY ONLY
SYSTEM HAS BEEN OBTAINED FROM DTC, AND NEITHER THE COUNTY NOR THE
UNDERWRITER TAKES ANY RESPONSIBILITY FOR THE ACCURACY THEREOF.
125694/002/00469358.DOCv4) 3
Agenda Item No. 10C
October 26, 2010
Page 85 of 156
DTC will act as securities depository for the Series 2010B Bonds. The Series 2010B Bonds will be
registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be
requested by an authorized representative of DTC. One fully- registered Series 2010B Bond will be used
for each maturity of the Series 2010B Bonds, in the aggregate amount of such maturity, and will be
deposited with DTC.
SO LONG AS CEDE & CO. IS THE REGISTERED OWNER OF THE SERIES 2010B BONDS, AS
NOMINEE OF DTC, CERTAIN REFERENCES IN THIS OFFICIAL STATEMENT TO THE SERIES 2010B
BONDHOLDERS OR REGISTERED OWNERS OF THE SERIES 2010B BONDS WILL MEAN CEDE &
CO. AND WILL NOT MEAN THE BENEFICIAL OWNERS OF THE SERIES 2010B BONDS. THE
DESCRIPTION WHICH FOLLOWS OF THE PROCEDURES AND RECORD KEEPING WITH RESPECT
TO BENEFICIAL OWNERSHIP INTERESTS IN THE SERIES 2010B BONDS, PAYMENT OF INTEREST
AND PRINCIPAL ON THE SERIES 2010B BONDS TO DIRECT PARTICIPANTS (AS HEREINAFTER
DEFINED) OR BENEFICIAL OWNERS OF THE SERIES 2010B BONDS, CONFIRMATION AND
TRANSFER OF BENEFICIAL OWNERSHIP INTERESTS IN THE SERIES 2010B BONDS, AND OTHER
RELATED TRANSACTIONS BY AND BETWEEN DTC, THE DIRECT PARTICIPANTS AND
BENEFICIAL OWNERS OF THE SERIES 2010B BONDS IS BASED SOLELY ON INFORMATION
FURNISHED BY DTC. ACCORDINGLY, NEITHER THE COUNTY NOR THE UNDERWRITER MAKES
NOR CAN MAKE ANY REPRESENTATIONS CONCERNING THESE MATTERS.
DTC, the world's largest depository, is a limited - purpose trust company organized under the
New York Banking Law, a 'banking organization" within the meaning of the New York Banking Law, a
member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York
Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A
of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues
of U.S. and non -U.S. equity issues, corporate and municipal debt issues, and money market instruments
(from over 100 countries) that DTC's participants (the "Direct Participants ") deposit with DTC. DTC also
facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in
deposited securities, through electronic computerized book -entry transfers and pledges between Direct
Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct
Participants include both U.S. and non -U.S. securities brokers and dealers, banks, trust companies,
clearing corporations, and certain other organizations. DTC is a wholly -owned subsidiary of The
Depository Trust & Clearing Corporation ( "DTCC "). DTCC is the holding company for DTC, National
Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered
clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is
also available to others such as both U.S. and non -U.S. securities brokers, dealers, banks, trust companies
and clearing corporations that clear through or maintain a custodial relationship with a Direct
Participant, either directly or indirectly (the "Indirect Participants "). DTC has Standard & Poor's highest
rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities and Exchange
Commission. More information about DTC can be found at www.dtcc.com and tiiA•w Atc.org.
Purchases of Series 2010B Bonds under the DTC system must be made by or through Direct
Participants, which will receive a credit for such Series 2010B Bonds on DTC's records. The ownership
interest of each actual purchaser of each Series 2010B Bond (the "Beneficial Owner ") is in turn to be
recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written
confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written
confirmations providing details of the transaction, as well as periodic statements of their holdings, from
the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction.
{25694/002/00469358.DOCv4} 4
Agenda Item No. 10C
October 26, 2010
Page 86 of 156
Transfers of ownership interests in the Series 2010B Bonds are to be accomplished by entries made on the
books of Direct and Indirect Participants acting on behalf of the Beneficial Owners. Beneficial Owners
will not receive certificates representing their ownership interests in the Series 2010B Bonds, except in the
event that use of the book -entry system for the Series 2010B Bonds is discontinued.
To facilitate subsequent transfers, all Series 2010B Bonds deposited by Direct Participants with
DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be
requested by an authorized representative of DTC. The deposit of Series 2010B Bonds with DTC and
their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in
beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Series 2010B Bonds;
DTC's records reflect only the identity of the Direct Participants to whose accounts such Series 2010B
Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants
will remain responsible for keeping an account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial
Owners will be governed by arrangements made among them, subject to any statutory or regulatory
requirements as may be in effect from time to time.
Redemption notices shall be sent to DTC. If less than all of the Series 2010B Bonds are being
redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in
such bonds to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to
the Series 2010B Bonds unless authorized by a Direct Participant in accordance with DTC's MMI
Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the County as soon as possible
after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those
Direct Participants to whose accounts the Series 2010B Bonds are credited on the record date (identified in
a listing attached to the Omnibus Proxy).
Principal and interest payments on the Series 2010B Bonds will be made to DTC. DTC's practice
is to credit Direct Participants' accounts, upon DTC's receipt of funds and corresponding detail
information from the County or the Paying Agent and Registrar on the payable date in accordance with
their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be
governed by standing instructions and customary practices, as is the case with securities held for the
accounts of customers in bearer form or registered in "street name," and will be the responsibility of such
Participant and not of DTC, the Paying Agent or the County, subject to any statutory and regulatory
requirements as may be in effect from time to time. Payment of principal and interest to Cede & Co. (or
such other nominee as may be requested by an authorized representative of DTC) is the responsibility of
the County and /or the Paying Agent for the Series 2010B Bonds. Disbursement of such payments to
Direct Participants is the responsibility of DTC, and disbursement of such payments to the Beneficial
Owners is the responsibility of the Direct and Indirect Participants.
DTC may discontinue providing its services as securities depository with respect to the Series
2010B Bonds at any time by giving reasonable notice to the County. Under such circumstances, in the
event that a successor securities depository is not obtained, Series 2010B Bond certificates are required to
be printed and delivered.
{25694/002/00469358.DOCv4) 5
Agenda Item No. 10C
October 26, 2010
Page 87 of 156
The County may decide to discontinue use of the system of book -entry transfers through DTC (or
a successor securities depository). In that event, Series 2010B Bond certificates will be printed and
delivered and be subject to transfer and registration as provided in the Resolution and as described below
under the subheading "— Interchangeability, Negotiability and Transfer" which immediately follows.
Interchangeability, Negotiability and Transfer
So long as the Series 2010B Bonds are registered in the name of DTC or its nominee, the following
paragraphs relating to transfer and exchange of Series 2010B Bonds do not apply to the Series 2010B Bonds to the
extent of a conflict with the DTC book -entry system.
Series 2010B Bonds, upon surrender thereof at the office of the Registrar with a written
instrument of transfer satisfactory to the Registrar, duly executed by the Holder or his attorney duly
authorized in writing, may, at the option of the Holder thereof, be exchanged for an equal aggregate
principal amount of registered Series 2010B Bonds of the same maturity of any other authorized
denominations.
The Series 2010B Bonds issued under the Resolution shall be and have all the qualities and
incidents of negotiable instruments under the law merchant and the Uniform Commercial Code of the
State, subject to the provisions for registration and transfer contained in the Resolution and in the Series
2010B Bonds. So long as any of the Series 2010B Bonds shall remain Outstanding, the County shall
maintain and keep, at the office of the Registrar, books for the registration and transfer of the Series 2010B
Bonds.
Each Series 2010B Bond shall be transferable only upon the books of the County, at the office of
the Registrar, under such reasonable regulations as the County may prescribe, by the Holder thereof in
person or by his attorney duly authorized in writing upon surrender thereof together with a written
instrument of transfer satisfactory to the Registrar duly executed and guaranteed by the Holder or his
duly authorized attorney. Upon the transfer of any such Series 2010B Bond, the County shall issue, and
cause to be authenticated, in the name of the transferee a new Series 2010B Bond or Series 2010B Bonds of
the same aggregate principal amount and maturity as the surrendered Series 2010B Bond. The County,
the Registrar and any Paying Agent or fiduciary of the County may deem and treat the Person in whose
name any Outstanding Series 2010B Bond shall be registered upon the books of the County as the
absolute owner of such Series 2010B Bond, whether such Series 2010B Bond shall be overdue or not, for
the purpose of receiving payment of, or on account of, the principal or Redemption Price, if applicable,
and interest on such Series 2010B Bond and for all other purposes, and all such payments so made to any
such Holder or upon his order shall be valid and effectual to satisfy and discharge the liability upon such
Series 2010B Bond to the extent of the sum or sums so paid and neither the County nor the Registrar nor
any Paying Agent or other fiduciary of the County shall be affected by any notice to the contrary.
The Registrar, in any case where it is not also the Paying Agent in respect to any Series 2010B
Bonds, forthwith (A) following the fifteenth day prior to an Interest Date for the Series 2010B Bonds; (B)
following the fifteenth (15th) day next preceding the date of first mailing of notice of redemption of any
Series 2010B Bonds; and (C) at any other time as reasonably requested by the Paying Agent of such Series
2010B Bonds, shall certify and furnish to such Paying Agent the names, addresses and holdings of Series
2010B Bondholders and any other relevant information reflected in the registration books. Any Paying
Agent of any fully registered Series 2010B Bond shall effect payment of interest on such Series 2010B
125694/002/00469358.DOCv4} 6
Agenda Item No. 10C
October 26, 2010
Page 88 of 156
Bonds by mailing a check to the Holder entitled thereto or may, in lieu thereof, upon the request and
expense of such Holder, transmit such payment by bank wire transfer for the account of such Holder.
In all cases in which the privilege of exchanging or transferring Series 2010B Bonds is exercised,
the County shall execute and deliver Series 2010B Bonds and the Registrar shall authenticate such Series
2010B Bonds in accordance with the provisions of the Resolution. Execution of Series 2010B Bonds by the
Chairman and Clerk for purposes of exchanging, replacing or transferring Series 2010B Bonds may occur
at the time of the original delivery of the Series 2010B Bonds. All Series 2010B Bonds surrendered in any
such exchanges or transfers shall be held by the Registrar in safekeeping until directed by the County to
be cancelled by the Registrar. For every such exchange or registration of transfer of Series 2010B Bonds,
the County or the Registrar may make a charge sufficient to reimburse it for any tax, fee, expense or other
governmental charge required to be paid with respect to such exchange or transfer. The County and the
Registrar shall not be obligated to make any such exchange or transfer of Series 2010B Bonds during the
fifteen (15) days next preceding an Interest Date on the Series 2010B Bonds, or, in the case of any
proposed redemption of the Series 2010B Bonds then, for the Series 2010B Bonds called for redemption,
during the fifteen (15) days next preceding the date of the first mailing of notice of such redemption and
continuing until such redemption date.
Series 2010B Bonds Mutilated, Destroyed, Stolen or Lost
So long as the Series 2010B Bonds are registered in the name of DTC or its nominee, the following
paragraphs relating to mutilated, destroyed, stolen or lost Series 2010B Bonds do not apply to the Series 2010B
Bonds to the extent of a conflict with the DTC book -entry system.
In case any Series 2010B Bond shall become mutilated, or be destroyed, stolen or lost, the County
may, in its discretion, issue and deliver, and the Registrar shall authenticate, a new Series 2010B Bond of
like tenor as the Series 2010B Bond so mutilated, destroyed, stolen or lost, in exchange and substitution
for such mutilated Series 2010B Bond upon surrender and cancellation of such mutilated Series 2010B
Bond or in lieu of and substitution for the Series 2010B Bond destroyed, stolen or lost, and upon the Series
2010B Bondholder furnishing the County and the Registrar proof of his ownership thereof and
satisfactory indemnity and complying with such other reasonable regulations and conditions as the
County or the Registrar may prescribe and paying such expenses as the County and the Registrar may
incur. All Series 2010B Bonds so surrendered shall be cancelled by the Registrar. If any of the Series
2010B Bonds shall have matured or be about to mature, instead of issuing a substitute Series 2010B Bond,
the County may pay the same or cause the Series 2010B Bond to be paid, upon being indemnified as
aforesaid, and if such Series 2010B Bonds be lost, stolen or destroyed, without surrender thereof.
Any such duplicate Series 2010B Bonds issued pursuant to the Resolution shall constitute
original, additional contractual obligations on the part of the County whether or not the lost, stolen or
destroyed Series 2010B Bond be at any time found by anyone, and such duplicate Series 2010B Bond shall
be entitled to equal and proportionate benefits and rights to the same extent as all other Series 2010B
Bonds issued pursuant to the Resolution.
No Early Redemption
The Series 2010B Bonds are not subject to redemption prior to maturity.
{25694/002J00469358.DOCv41 7
SECURITY FOR THE SERIES 2010B BONDS
General
Agenda Item No. 10C
October 26, 2010
Page 89 of 156
The County has covenanted and agreed to appropriate in its annual budget, by amendment, if
necessary, from Non -Ad Valorem Revenues amounts sufficient to (A) pay principal of and interest on the
Series 2010B Bonds when due, and (B) pay all required deposits to the Rebate Fund pursuant to the
Resolution.
'Non -Ad Valorem Revenues' means all General Fund Revenues and MSTD Revenues, other than
revenues generated from ad valorem taxation on real or personal property, and all Impact Fee Proceeds,
but only to the extent they are legally available to make the payments required in the Resolution.
"General Fund Revenues" means total revenues of the County derived from any source whatsoever and
that are allocated to and accounted for in the General Fund as shown in the Annual Audit. "General
Fund" means the "General Fund" of the County as described and identified in the Annual Audit. "Impact
Fee Proceeds' means the proceeds of all impact fees levied by the County that are allocated to and
accounted for in the Capital Projects Funds as shown in the Annual Audit. "Capital Projects Fund" means
the "Capital Projects Funds" of the County as described and identified in the Annual Audit. "MSTD
Revenues' means all revenues of the County derived from any source whatsoever and that are allocated
to and accounted for in the Unincorporated Area Municipal Services Taxing District Fund as shown in
the Annual Audit. "Unincorporated Area Municipal Services Taxing District Fund" means the
"Unincorporated Area Municipal Services Taxing District Fund" of the "Special Revenue Funds' as such
Funds are described and identified in the Annual Audit.
Such covenant and agreement on the part of the County to budget and appropriate such amounts
of Non -Ad Valorem Revenues shall be cumulative to the extent not paid, and shall continue until such
Non -Ad Valorem Revenues or other legally available funds in amounts sufficient to make all such
required payments shall have been budgeted, appropriated and actually paid. Notwithstanding the
foregoing covenant of the County, the County does not covenant to maintain any services or programs,
now provided or maintained by the County, which generate Non -Ad Valorem Revenues.
Such covenant to budget and appropriate does not create any lien upon or pledge of such Non -
Ad Valorem Revenues, nor does it preclude the County from pledging in the future its Non -Ad Valorem
Revenues, nor does it require the County to levy and collect any particular Non -Ad Valorem Revenues,
nor does it give the Series 2010B Bondholders a prior claim on the Non -Ad Valorem Revenues as opposed
to claims of general creditors of the County. Such covenant to appropriate Non -Ad Valorem Revenues is
subject in all respects to the payment of obligations secured by a pledge of such Non -Ad Valorem
Revenues heretofore or hereafter entered into (including the payment of debt service on bonds and other
debt instruments). However, the covenant to budget and appropriate for the purposes and in the manner
stated in the Resolution shall have the effect of making available for the payment of the Series 2010B
Bonds, in the manner described in the Resolution, Non -Ad Valorem Revenues and placing on the County
a positive duty to appropriate and budget, by amendment, if necessary, amounts sufficient to meet its
obligations under the Resolution; subject, however, in all respects to the restrictions of Section 129.07,
Florida Statutes, which generally provide that the governing body of each county may only make
appropriations for each fiscal year which, in any one year, shall not exceed the amount to be received
from taxation or other revenue sources; and subject, further, to the payment of services and programs
which are for essential public purposes affecting the health, safety and welfare of the inhabitants of the
County or which are legally mandated by applicable law.
125694/002/00469358.DOCv4l 8
Agenda Item No. 10C
October 26, 2010
Page 90 of 156
The County has covenanted and agreed to transfer to the Paying Agent for the Series 2010B
Bonds, solely from funds budgeted and appropriated as described in the Resolution, at least one business
day prior to the date designated for payment of any principal of or interest on the Series 2010B Bonds,
sufficient moneys to pay such principal or interest. The Registrar and Paying Agent shall utilize such
moneys for payment of the principal and interest on the Series 2010B Bonds when due.
THE SERIES 2010B BONDS SHALL NOT BE OR CONSTITUTE GENERAL OBLIGATIONS OR
INDEBTEDNESS OF THE COUNTY AS "BONDS" WITHIN THE MEANING OF ANY
CONSTITUTIONAL OR STATUTORY PROVISION, BUT SHALL BE SPECIAL OBLIGATIONS OF THE
COUNTY, PAYABLE SOLELY FROM AMOUNTS BUDGETED AND APPROPRIATED BY THE
COUNTY FROM NON -AD VALOREM REVENUES IN ACCORDANCE WITH THE RESOLUTION. NO
HOLDER OF ANY SERIES 2010B BOND SHALL HAVE THE RIGHT TO COMPEL THE EXERCISE OF
ANY AD VALOREM TAXING POWER TO PAY SUCH SERIES 2010B BOND, OR BE ENTITLED TO
PAYMENT OF SUCH SERIES 2010B BOND FROM ANY MONEYS OF THE COUNTY EXCEPT FROM
THE NON -AD VALOREM REVENUES IN THE MANNER AND TO THE EXTENT PROVIDED IN THE
RESOLUTION.
No Reserve for the Series 2010B Bonds
Pursuant to the Resolution, the County has determined not to fund a debt service reserve fund or
account to further secure the Series 2010B Bonds.
Anti- Dilution Test
During such time as any Series 2010B Bonds are Outstanding under the Resolution, the County
has agreed and covenanted with the Series 2010B Bondholders that (1) Non -Ad Valorem Revenues shall
cover projected Maximum Annual Debt Service on the Series 2010B Bonds and maximum annual debt
service on Debt by at least 1.5x; and (2) projected Maximum Annual Debt Service on the Series 2010B
Bonds and maximum annual debt service for all Debt will not exceed 20% of the aggregate of General
Fund Revenues, MSTD Revenues and Impact Fee Proceeds exclusive of (a) ad valorem tax revenues
restricted to payment of debt service on any Debt and (b) any proceeds of the Series 2010B Bonds or Debt.
The calculations required by (1) and (2) above shall be determined using the average of actual revenues
for the prior two Fiscal Years based on the County's Annual Audits.
For the purposes of the covenants contained in the preceding paragraph, maximum annual debt
service on Debt means, with respect to Debt that bears interest at a fixed interest rate, the actual
maximum annual debt service, and, with respect to Debt which bears interest at a variable interest rate,
maximum annual debt service on such Debt shall be determined assuming that interest accrues on such
Debt at the current "Bond Buyer Revenue Bond Index" as published in The Bond Bum no more than two
weeks prior to any such calculation; provided, however, if any Debt, whether bearing interest at a fixed
or variable interest rate, constitutes Balloon Indebtedness, as defined below, maximum annual debt
service on such Debt shall be determined assuming such Debt is amortized over 20 years on an
approximately level debt service basis. "Debt" means at any date (without duplication) all of the
following to the extent that they are secured by or payable in whole or in part from Non -Ad Valorem
Revenues (A) all obligations of the County for borrowed money or evidenced by bonds, debentures,
notes or other similar instruments; (B) all obligations of the County to pay the deferred purchase price of
property or services, except trade accounts payable under normal trade terms and which arise in the
{25694/002/00469358.DOCv4)
Agenda Item No. 10C
October 26, 2010
Page 91 of 156
ordinary course of business; (C) all obligations of the County as lessee under capitalized leases; and (D)
all indebtedness of other Persons to the extent guaranteed by, or secured by, Non -Ad Valorem Revenues
of the County; provided, however, if with respect to any obligation contemplated in (A), (B), or (C) above,
the County has covenanted to budget and appropriate sufficient Non -Ad Valorem Revenues to satisfy
such obligation but has not secured such obligation with alien on or pledge of any Non -Ad Valorem
Revenues then, and with respect to any obligation contemplated in (D) above, such obligation shall not be
considered "Debt" for purposes of the Resolution unless the County has actually used Non -Ad Valorem
Revenues to satisfy such obligation during the immediately preceding Fiscal Year or reasonably expects
to use Non -Ad Valorem Revenues to satisfy such obligation in the current or immediately succeeding
Fiscal Year. After an obligation is considered "Debt" as a result of the proviso set forth in the immediately
preceding sentence, it shall continue to be considered "Debt" until the County has not used any Non -Ad
Valorem Revenues to satisfy such obligation for two consecutive Fiscal Years. For purposes of this
paragraph, "Balloon Indebtedness" means Debt, 25% or more of the original principal of which matures
during any one Fiscal Year. In addition, with respect to debt service on any Debt which is subject to a
Qualified Hedge Agreement, interest on such Debt during the term of such Qualified Hedge Agreement
shall be deemed to be the Hedge Payments coming due during such period of time.
GENERAL INFORMATION REGARDING NON -AD VALOREM REVENUES
General
The County generally receives two primary sources of general governmental revenue: ad
valorem taxes and non -ad valorem revenues. Ad valorem taxes may not be pledged for the payment of
debt obligations of the County maturing more than twelve months from the date of issuance thereof
without approval of the electorate of the County. The ad valorem tax revenues of the County are not
pledged as security for the payment of the Series 2010B Bonds and the County is not obligated to budget
and appropriate ad valorem tax revenues for the payment of the Series 2010B Bonds.
The County is permitted by the Florida Constitution to levy ad valorem taxes at a rate of up to
$10 per $1,000 of assessed valuation for general governmental expenditures. The County's General Fund
ad valorem tax millage rate for the fiscal year ending September 30, 2011 is $3.5645 per $1,000. The
County's Unincorporated Area Municipal Services Taxing District Fund ad valorem tax millage rate for
the fiscal year ending September 30, 2011 is $0.7161 per $1,000. The County is also permitted by the
Florida Constitution to levy ad valorem taxes above the $10 per $1,000 limitation to pay debt service on
general obligation long -term debt if approved by a voter referendum but does not currently do so.
Non -ad valorem revenues of the County may be pledged, subject to certain limitations disclosed
herein, for the payment of debt obligations of the County. Such non -ad valorem revenues include a
broad category of revenues, including, but not limited to, revenues received from the State, investment
income and income produced from certain services and facilities of the County, as described below.
Series 2010B Bondholders do not have a lien on any specific non -ad valorem revenues of the County.
As more fully described above under "SECURITY FOR THE SERIES 2010B BONDS," the County
has covenanted and agreed in the Resolution, subject to certain restrictions and limitations, to appropriate
in its annual budget, by amendment, if necessary, from Non -Ad Valorem Revenues amounts sufficient to
pay principal of and interest on the Series 2010B Bonds when due in the manner and to the extent
described herein. The holders of the Series 2010B Bonds do not have alien on any specific Non -Ad
125694/002/00469358.DOCv4} 10
Agenda Item No. 10C
October 26, 2010
Page 92 of 156
Valorem Revenues of the County and the County has outstanding certain other debt obligations payable
from a lien upon and pledge of certain of the Non -Ad Valorem Revenues of the County.
A large percentage of the revenues of the County, including ad valorem taxes and non -ad
valorem revenues, are deposited in the General Fund and the Unincorporated Area Municipal Services
Taxing District Fund. The General Fund is the largest operating fund of the County. It is used to account
for substantially all countywide activities and is supported principally by ad valorem taxes. The
Unincorporated Area Municipal Services Taxing District Fund accounts for municipal type services
provided in the unincorporated area of the County and is also supported primarily by ad valorem taxes.
See "CERTAIN FINANCIAL MATTERS - General Fund and Unincorporated Area Municipal Services
Taxing District Fund" herein. Furthermore, as described herein under "SECURITY FOR THE SERIES
2010B BONDS," the obligation of the County to budget and appropriate Non -Ad Valorem Revenues is
subject to a variety of factors, including without limitation the payment of services and programs which
are for essential public purposes affecting the health, safety and welfare of the inhabitants of the County
or which are mandated by applicable law, and the obligation of the County to have a balanced budget.
The Florida Department of Financial Services ( "FDFS ") has developed, as part of the Uniform
Accounting System Manual's Chart of Accounts, six major categories of local government revenues:
taxes, intergovernmental revenues, licenses, permits and impact fees, charges for services, fines and
forfeitures and miscellaneous revenues. Using that organization, the following describes the major
sources of the County's Non -Ad Valorem Revenues:
Taxes
Local Communications Services Tax
The Communications Services Tax Simplification Act, enacted by Chapter 2000 -260, Laws of
Florida, as amended by Chapter 2001 -140, Laws of Florida, and now codified in part as Chapter 202,
Florida Statutes (the "CSTA ") established, effective October 1, 2001, a communications services tax on the
sale of communications services as defined in Section 202.11, Florida Statutes, and as of the same date
repealed Section 166.231(9), Florida Statutes, which previously granted municipalities the authority to
levy a utility services tax on the purchase of telecommunications services. Pursuant to Sections 202.19
and 202.20, Florida Statutes any sale of communications services charged to a service address in the
County is subject to the County's local communications services tax ( "Communications Services Tax") at a
rate of 2.10 %. The revenues that are received by the County from such Communications Services Tax
which derive from the Local Communications Services Tax Clearing Trust Fund (the "Trust Fund ")
created with the Florida Department of Revenue ( "FDOR ") pursuant to Section 202.193, Florida Statutes
may be pledged for the repayment of current or future bonded indebtedness.
The telecommunications tax applies to the purchase of "telecommunications services" which
originated or terminated within unincorporated Collier County, with certain exemptions described
below. "Telecommunications services" is defined to be local telephone service, toll telephone service,
telegram or telegraph service, teletypewriter service, private communication service, cellular mobile
telephone or telecommunication service or specialized mobile radio, pagers and paging service, but
excludes Internet access service, cable service, electronic mail service, electronic bulletin board service, or
similar on -line computer service.
125694/002/00469358.DOCv41 11
Agenda Item No. 10C
October 26, 2010
Page 93 of 156
One effect of the CSTA was to replace the former telecommunications tax, including pre -paid
calling arrangements, as well as any revenues from franchise fees on cable and telecommunications
service providers and permit fees relating to placing or maintaining facilities in rights -of -way collected
from providers of certain telecommunications services, with the local communications services tax. This
change in law was intended to be revenue neutral to the counties and municipalities. The
Communications Services Tax applies to a broader base of communications services than the former
telecommunications tax.
"Communication services" under the CSTA are defined as the transmission, conveyance, or
routing of voice, data, audio, video, or any other information or signals, including cable services, to a
point, or between or among points, by or through any electronic, radio, satellite, cable, optical,
microwave, or other medium or method now in existence or hereafter devised, regardless of the protocol
used for such transmission or conveyance. The term does not include:
(a) Information services.
(b) Installation or maintenance of wiring or equipment on a customer's premises.
(c) The sale or rental of tangible personal property.
(d) The sale of advertising, including, but not limited to, directory advertising.
(e) Bad check charges.
(f) Late payment charges.
(g) Billing and collection services.
(h) Internet access service, electronic mail service, electronic bulletin board service, or similar
on -line services.
However, such services have historically been taxed if the charges for such services are not stated
separately from the charges for communications services, on a customer's bill.
The sale of communications services to (i) the federal government, or any instrumentality or
agency thereof, or any entity that is exempt from state taxes under federal law, (ii) the state or any county,
municipality or political subdivision of the state when payment is made directly to the dealer by the
governmental entity, and (iii) any educational institution (which includes state tax - supported and
nonprofit private schools, colleges and universities and nonprofit libraries, art galleries and museums,
among others) or religious institutions (which includes, but is not limited to, organizations having an
established physical place for worship at which nonprofit religious services and activities are regularly
conducted) that is exempt from federal income tax under Section 501(c)(3) of the Code are exempt from
the Communications Services Tax.
The CSTA provides that, to the extent that a provider of communications services is required to
pay to a local taxing jurisdiction a tax, charge, or other fee under any franchise agreement or ordinance
with respect to the services or revenues that are also subject to the Communications Services Tax, such
provider is entitled to a credit against the amount of such Communications Services Tax payable to the
State in the amount of such tax, charge, or fee with respect to such service or revenues. The amount of
such credit is deducted from the amount that such local taxing jurisdiction is entitled to receive under
Section 202(18)(3), Florida Statutes.
Under the CSTA, local governments must work with the FDOR to properly identify service
addresses to each municipality and county. If a jurisdiction fails to provide the FDOR with accurate
service address information, the local government risks losing tax proceeds that it should properly
125694/002/00469358.DOCv41 12
Agenda Item No. 10C
October 26, 2010
Page 94 of 156
receive. The County believes it has provided the FDOR with all information that the FDOR has requested
as of the date hereof and that such information is accurate.
Providers of communications services collect the Communications Services Tax and may deduct
0.75% as a collection fee (or 0.25% in the case of providers who do not employ an enhanced zip code
database or a database that is either supplied or certified by the FDOR). The communications services
providers remit the remaining proceeds to the FDOR for deposit into the Trust Fund. The FDOR then
makes monthly contributions from the Trust Fund to local governments after deducting up to 1% of the
total revenues generated as an administrative fee.
The federal Internet Tax Freedom Act ('TTFA ") imposes a moratorium on taxation of Internet
access by states and political subdivisions. As amended by the Internet Tax Nondiscrimination Act
(" ITNA "), the ITFA may have a material adverse effect upon future collections of the Communications
Services Tax Revenues. Signed by President George W. Bush on December 31 2004, the ITNA extended
the TTFA until November 1, 2007. Federal legislation was enacted on October 31, 2007, to extend the
moratorium, which was set to expire on November 1, 2007, on certain state and local government taxation
on Internet access to November 1, 2014. This legislation prohibits a state from reimposing a tax on
Internet access which the state repealed more than twenty -four (24) months prior to this legislation's
enactment. Additionally, a specific exemption was created for certain state business taxes enacted
between June 20, 2005 and before November 1, 2007 which do not discriminate against providers of
communication services, Internet access or telecommunications. Effective November 1, 2003, "Internet
access" was amended to include telecommunications services purchased, used or sold by a provider of
Internet access to provide Internet access. "Internet access" now also includes related communication
services, such as email and instant messaging. The definition of "Internet access" was revised, in part, to
eliminate existing language which could be read to allow providers of communication services to exclude
from taxation charges for Internet access services which are bundled for a single price with taxable
communication services. "Telecommunications," as amended, includes un- regulated non -utility
telecommunications, such as cable services. Application of the amended definition of "Internet access"
was delayed until June 30, 2008 for state or local tax on Internet access that was: (1) generally imposed
and actually enforced on telecommunication services, or (2) the subject of litigation instituted in a state
court prior to July 1, 2007. Prior to December 3, 2004, under the CSTA, according to FDOR, when charges
for Internet access services are not separately stated on a customer's bill, the entire charge is taxed,
regardless of whether the charge includes Internet access or telecommunications services used to provide
Internet access. The negative impact on future collections of Communications Services Tax Revenues
because of the TTNA cannot be determined at this time.
The amount of Communications Services Tax revenues received by the County is subject to
increase or decrease due to (i) increases or decreases in the dollar volume of taxable sales within the
County, (ii) legislative changes, and /or (iii) technological advances which could affect consumer
preferences, such as Voice over Internet Protocol ( "VoIP "). VolP is a less expensive technology that
allows telephone calls to be made in digital form using a broadband Internet connection, rather than an
analog phone line, and has the potential to supplant traditional telephone service. It is possible that Vole
could either reduce the dollar volume of taxable sales within the County or will be a non - taxable service
altogether.
The amount of the Communications Services Tax revenues collected within the County may be
adversely affected by the incorporation of new municipalities in the unincorporated areas of the County
and the annexation of unincorporated areas of the County by the municipalities within the County. Such
125694/002/00469358.DOCv41 13
Agenda Item No. 10C
October 26, 2010
Page 95 of 156
incorporation and /or annexation would decrease the number of addresses contained within the
unincorporated areas of the County. At this time there are no incorporations or annexations anticipated
within the County.
Intergovernmental Revenues
All revenues received by a local unit from federal, state, and other local government sources in
the form of grants, shared revenues, and payments in lieu of taxes would be included in the
intergovernmental revenues category. The category is further classified into seven subcategories: federal
grants, federal payments in lieu of taxes (PILOT), state grants, state shared revenues, state PILOT, local
grants and local shared revenues. If a particular grant is funded from separate intergovernmental
sources, then the revenue is recorded proportionately. The largest component is the "Local Government
Half -Cent Sales Tax."
Local Government Half -Cent Sales Tax
"Sales Tax Revenues" consist of the amount of the Local Government Half -Cent Sales Tax
distributed by the State from the Local Government Half -Cent Sales Tax Clearing Trust Fund to the
County pursuant to the provisions of Chapter 218, Part VI, Florida Statutes.
The State levies and collects a sales tax on, among other things, the sales price of each item or
article of tangible personal property sold at retail in the State, subject to certain exceptions and dealer
allowances. In 1982, the Florida legislature created the Local Government Half -Cent Sales Tax Program
(the "Half -Cent Sales Tax Program ") which distributes a portion of the sales tax revenue and money from
the State's General Revenue Fund to counties and municipalities that meet strict eligibility requirements.
In 1982, when the Half -Cent Sales Tax Program was created, the general rate of sales tax in the State was
increased from 4% to 5 %, and one -half of the fifth cent was devoted to the Half -Cent Sales Tax Program,
thus giving rise to the name "Half -Cent Sales Tax." Although the amount of sales tax revenue deposited
into the Half -Cent Sales Tax Program is no longer one -half of the fifth cent of every dollar of the sales
price of an item subject to sales tax, the name "Half -Cent Sales Tax" has continued to be utilized.
Section 212.20, Florida Statutes, provides for the distribution of sales tax revenues collected by
the State and further provides for the distribution of a portion of sales tax revenues to the Half -Cent Sales
Tax Clearing Trust Fund (the "Half -Cent Sales Tax Trust Fund "), after providing for transfers to the State's
General Fund and the Ecosystem Management and Restoration Trust Fund. From 1993 until July 1, 2003,
the proportion of sales tax revenues deposited in the Half -Cent Sales Tax Trust Fund (the "Half -Cent
Sales Tax Revenues ") had been constant at 9.653% of all state sales tax remitted to the State by a sales tax
dealer located within a particular county. (Effective July 1, 2003, such proportion was reduced to 9.643 %,
and effective July 1, 2004, such proportion was further reduced to 8.814 %, which remains in effect). Such
amount deposited in the Half -Cent Sales Tax Trust Fund is earmarked for distribution to the governing
body of such county and each participating municipality within that county pursuant to a distribution
formula. The legislative intent of the proportion reductions described above was to freeze for one fiscal
year the total amount of Half -Cent Sales Tax Revenues distributed to the counties and municipalities
throughout the State. The negative impact on municipalities from changes to the half -cent sales tax
distribution was offset by the increased distribution to the Revenue Sharing Trust Fund for
municipalities. Likewise, the negative impact of the change in half -cent sales tax distribution on smaller
counties with a limited tax base was offset by the increased share of state taxes going for the emergency
distribution. The net impact was to reduce the amount of funds distributed to county governments equal
{25694/002/00469358.DOCv4) 14
Agenda Item No. 10C
October 26, 2010
Page 96 of 156
to projected growth in income from the half -cent sales tax distribution. The general rate of sales tax in the
State is currently 6 %. After taking into account the distributions to the State's General Fund (historically
5% of taxes collected) and the Ecosystem Management and Restoration Trust Fund (historically 0.2% of
taxes collected), and after taking into account the cumulative effect of the proportion reductions
described above, for every dollar of taxable sales price of an item, approximately 0.501 cents is deposited
into the Trust Fund.
As of October 1, 2001, the Half -Cent Sales Tax Trust Fund began receiving a portion of the
Communications Services Tax pursuant to the CSTA. Accordingly, moneys distributed from the Half -
Cent Sales Tax Trust Fund now consist of funds derived from both general sales tax proceeds and
Communications Services Tax revenues required to be deposited into the Half -Cent Sales Tax Trust Fund.
The Half -Cent Sales Tax Revenues are distributed from the Half -Cent Sales Tax Trust Fund on a monthly
basis to participating units of local government in accordance with Part VI, Chapter 218, Florida Statutes
(the "Sales Tax Act "). The Sales Tax Act permits the County to pledge its share of the Half -Cent Sales Tax
for the payment of principal of and interest on any capital project. Florida law also allows counties to
impose a sales surtax of up to 1% to fund infrastructure improvements upon approval by a vote of the
electors. The County has not imposed a 1% sales surtax.
To be eligible to participate in the Half -Cent Sales Tax Program, each municipality and county is
required to have:
(i) reported its finances for its most recently completed fiscal year to the FDFS as required
by Florida law;
(ii) made provisions for annual post audits of financial accounts in accordance with
provisions of law;
(iii) levied, as shown on its most recent financial report, ad valorem taxes, exclusive of taxes
levied for debt service or other special millages authorized by the voters, to produce the
revenue equivalent to a millage rate of three (3) mills on the dollar based upon 1973
taxable values or, in order to produce revenue equivalent to that which would otherwise
be produced by such three (3) mill ad valorem tax, to have received a remittance from the
county pursuant to a municipal services benefit unit, collected an occupational license
tax, utility tax, or ad valorem tax, or have received revenue from any combination of
those four sources;
(iv) certified that persons in its employ as law enforcement officers meet certain qualifications
for employment, and receive certain compensation;
(v) certified that persons in its employ as firefighters meet certain employment qualifications
and are eligible for certain compensation;
(vi) certified that each dependent special district that is budgeted separately from the general
budget of such county or municipality has met the provisions for annual post audit of its
financial accounts in accordance with law; and
125694/002/00469358.DOCv41 15
Agenda Item No. 10C
October 26, 2010
Page 97 of 156
(vii) certified to the FDOR that it has complied with certain procedures regarding the
establishment of the ad valorem tax millage of the county or municipality as required by
law.
Although the Sales Tax Act does not impose any limitation on the number of years during which
a county or municipality may receive distributions of the Half -Cent Sales Tax Revenues from the
Half -Cent Sales Tax Trust Fund, there may be amendments to the Sales Tax Act in subsequent years
imposing additional requirements of eligibility for counties and municipalities participating in the Half -
Cent Sales Tax Revenues, or the distribution formulas in Sections 212.20(6)(d) or 218.62, Florida Statutes,
may be revised. To be eligible to participate in the Trust Fund in future years, the County must comply
with the financial reporting and other requirements of the Sales Tax Act. Otherwise, the County would
lose its Half -Cent Sales Tax Trust Fund distributions for twelve (12) months following a "determination of
noncompliance" by FDOR. The County has always maintained eligibility to receive the Sales Tax
Revenues.
Half -Cent Sales Tax Revenues collected within a county and deposited in the Half -Cent Sales Tax
Trust Fund are distributed among such county and the eligible municipalities therein in accordance with
the following formula:
County's share
unincorporated
2/3 of the
(expressed as a
county +
incorporated
percentage of total =
Half -Cent Sales Tax
population
coon population
Revenues)
total
2/3 of the
county +
incorporated
population
county population
Each municipality's
municipality population
share (expressed as a =
percentage of Half-
total
2/3 of the
Cent Sales Tax
county +
incorporated
Revenues)
population
county population
The amount of Half -Cent Sales Tax revenues distributed to the County is subject to increase or
decrease due to (i) more or less favorable economic conditions, (ii) increases or decreases in the dollar
volume of taxable sales within the County, (iii) legislative changes relating to the Local Government Half -
Cent Sales Tax, which may include changes in the scope of taxable sales, changes in the tax rate and
changes in the amount of sales tax revenue deposited into the Trust Fund and (iv) other factors which
may be beyond the control of the County or the Series 2010B Bondholders, including but not limited to
the potential for increased use of electronic commerce and other internet - related sales activity that could
have a material adverse impact upon the amount of Local Government Half -Cent Sales Tax collected by
the State and then distributed to the County.
f 25694/002/00469358.DOCv4} 16
Agenda Item No. 10C
October 26, 2010
Page 98 of 156
State Revenue Sharing
A portion of the taxes levied and collected by the State is shared with local governments under
provisions of Chapter 218.215, Florida Statutes. To be eligible for State Revenue Sharing funds, a local
government must have:
(i) reported its finances for its most recently completed fiscal year to the FDFS as required
by Florida law;
(ii) made provisions for annual post audits of financial accounts in accordance with
provisions of law;
(iii) levied, as shown on its most recent financial report, ad valorem taxes, exclusive of taxes
levied for debt service or other special millages authorized by the voters, to produce the
revenue equivalent to a millage rate of three (3) mills on the dollar based upon 1973
taxable values or, in order to produce revenue equivalent to that which would otherwise
be produced by such three (3) mill ad valorem tax, to have received a remittance from the
county pursuant to a municipal services benefit unit, collected an occupational license
tax, utility tax, or ad valorem tax, or have received revenue from any combination of
those four sources;
(iv) certified that persons in its employ as law enforcement officers meet certain qualifications
for employment, and receive certain compensation;
(v) certified that persons in its employ as firefighters meet certain employment qualifications
and are eligible for certain compensation;
(vi) certified that each dependent special district that is budgeted separately from the general
budget of such county or municipality has met the provisions for annual post audit of its
financial accounts in accordance with law; and
(vii) certified to the FDOR that it has complied with certain procedures regarding the
establishment of the ad valorem tax millage of the county or municipality as required by
law.
Eligibility is retained if the local government has met eligibility requirements for the previous
three years, even if the local government reduces its millage or utility taxes because of the receipt of State
Revenue Sharing funds.
The amount of the State Revenue Sharing Trust Fund distributed to a county is calculated using a
formula consisting of the following equally weighted factors: county population, unincorporated county
population and county sales tax collections. A county's population factor means a county's population
divided by the total population of all eligible counties in the State. The unincorporated county
population factor means the county's unincorporated population divided by the total unincorporated
population of all eligible counties in the State. A county's sales tax collections factor means that county's
sales tax collections during the preceding year divided by the total sales tax collections during the same
period for all eligible counties in the State. Funds are wired monthly by the FDOR.
125694/002/00469358.DOCv4) 17
Agenda Item No. 10C
October 26, 2010
Page 99 of 156
Each eligible county is entitled to receive a minimum amount of State Revenue Sharing Funds,
known as the "guaranteed entitlement" and the "second guaranteed entitlement," the first of which is
correlated to amounts received by such county from certain taxes on cigarettes, roads and intangible
property in the State fiscal year 1971 -1972 and the second of which is correlated to the amount received
by such county in State fiscal year 1981 -1982 from the then - existing tax on cigarettes and intangible
personal property, less the guaranteed entitlement. The funds remaining in the Revenue Sharing Trust
Fund after the distribution of the Guaranteed Entitlement and Second Guaranteed Entitlement are
referred to as "growth monies" that are further distributed to eligible counties (the "Growth Monies ").
There are no restrictions on the use of the Guaranteed Entitlement, Second Guaranteed
Entitlement or the Growth Monies, however there are restrictions on the amount of funds that can be
pledged for bond indebtedness. Counties are allowed to pledge the Guaranteed Entitlement and the
Second Guaranteed Entitlement revenues. Counties can assign, pledge, or set aside as a trust for the
payment of principal or interest on bonds or any other form of indebtedness an amount up to 50 percent
of the State Revenue Sharing Funds (including Growth Monies) received by it in the prior State fiscal
year.
To be eligible to participate in State Revenue Sharing in fixture years, the County must comply
with certain eligibility and reporting requirements. If the County fails to comply with such requirements,
the FDOR may utilize the best information available to it, if such information is available, or take any
necessary action including disqualification, either partial or entire, and the County shall further waive
any right to challenge the determination of the FDOR as to its distribution, if any.
Licenses, Permits and Impact Fees
These are revenues derived from the issuance of local professional, occupational, and other
licenses. Included in this category are impact fees. Pursuant to Ordinance No. 2001 -54, as amended, such
impact fees include: County -Wide Library Impact Fees, Emergency Medical Services Impact Fees,
Government Facilities Impact Fees and Law Enforcement Impact Fees. The Board established separate
impact fee trust funds for each of the County -Wide Library Impact Fees, Emergency Medical Services
Impact Fees, Government Facilities Impact Fees and Law Enforcement Impact Fees. Each of these impact
fee trust funds is maintained separate and apart from each other and from all other funds of the County.
The funds deposited into each impact fee trust fund are to be used solely for the purpose of providing
growth necessitated improvements and additions to the specific public facility for which such impact fees
are received. The 2002 Project consists of growth related improvements and additions for which County -
Wide Library Impact Fees, Emergency Medical Services Impact Fees and Government Facilities Impact
Fees are legally available. The 2002 Project does not consist of law enforcement growth related
improvements and additions, therefore, Law Enforcement Impact Fees are not legally available to pay
debt service on the Series 2010B Bonds.
Impact fees are charged on new construction and must be used for growth related capital
expansion. The use of impact fees is limited under Florida law to (i) payment for expansion facilities or
(ii) paying debt service on obligations issued to acquire or construct or refinance expansion facilities to
the extent the debt service is attributable to expansion facilities. The use of impact fees is further limited
to facility expansions related to the purpose of the impact fee itself. For example, County -Wide Library
Impact Fees may only be use to pay for library facilities expansion, and cannot be used to pay for
expansion of emergency medical services or other government facilities. Under Florida law, investment
earnings with respect to impact fees are subject to the same restrictions on use as the impact fees
{25694/002/00469358.DOCv4) 18
Agenda Item No. 10C
October 26, 2010
Page 100 of 156
themselves. Impact fees revenues fluctuate with the amount of new construction or development which
occurs within the County. Therefore, there can be no assurances that such revenue will not decrease or
be eliminated altogether in the event that new construction, for whatever reason, might decrease or cease
altogether within the County.
Footnote 17 to the County's audited financial statements for the fiscal year ended September 30,
2009 which can be found in "APPENDD( C — Audited Financial Statements" attached hereto states the
following:
"The following funds had fund balance deficits at September 30, 2009:
Fund Amount
County -Wide Library Impact Fee ($4,148,592)
Emergency Medical Services Impact Fee (101,572)
Government Facilities Impact Fee (5,355,509)
Law Enforcement Impact Fee X7,284,158)
Total ($16,889,831)
The fund balance deficits are primarily the result of advances from other funds
made prior to September 30, 2009. These advances were recorded to ensure repayment
of non - impact fee monies loaned to the impact fee fund for the construction of growth
necessitated facilities. County management anticipates that the deficits will be covered
by future years' impact fee revenues."
County management further anticipates that the deficits will be covered only after making
allocable debt service payments on the Series 2010B Bonds. The County has utilized this interfund loan
approach to track the degree to which unrestricted funds have subsidized growth- related expenditures,
such that fund reimbursement can occur in future years when and if the subject impact fees exceed
growth- related expenditures.
Charges for Services
Revenues resulting from a local unit's charges for services are reflected in this category and
include those charges received from private individuals or other governmental units. The following
functional areas include such charges:
(i)
General government;
(ii)
Public safety;
(iii)
Physical environment;
(iv)
Transportation;
(v)
Economic environment;
(vi)
Human services; and
(vii)
Culture and recreation.
125694/002/00469358.DOCv4) 19
Agenda Item No. 10C
October 26, 2010
Page 101 of 156
Fines and Forfeitures
Fines and forfeitures reflect those penalties and fines imposed for the commission of statutory
offenses, violation of lawful administrative rules and regulations, and for neglect of official duty.
Forfeitures include revenues resulting from parking and court fines.
Interest
This category includes interest earned on County investments. As the economy slows, the
amount of interest received by the County is negatively impacted.
Miscellaneous Revenues
This category includes a variety of revenues including:
(i)
Rents and royalties;
(ii)
Disposition of fixed assets;
(iii)
Contributions and donations;
(iv)
Insurance proceeds; and
(v)
Other miscellaneous revenue
The following table represents the County's determination of Non -Ad Valorem Revenues for the
County's fiscal years ending September 30, 2004 through and including September 30, 2010 (figures from
the fiscal year ending September 30, 2010 are estimates only and are unaudited) (excludes non -ad
valorem revenues of the County which are not legally available to pay debt service on the Series 2010B
Bonds). Certain of such revenues may heretofore or hereinafter be specifically pledged to secure other
indebtedness by the County. Any such debt would be payable from such specific revenue sources prior
to payment of debt service on the Series 2010B Bonds. Such table is not intended to represent revenues of
the County which would necessarily be available to pay debt service on the Series 2010B Bonds, however
they are an indication of the relative amounts of non -ad valorem revenues of the County which may be
available for the payment of principal of and interest on the Series 2010B Bonds taking into account
general government expenditures. Certain categories may cease to exist altogether and new sources may
come about from time to time.
[Remainder of page intentionally left blank]
{25694/002/00469358.DOCv4} 20
O O L fo
� O f
N
O O
z ,J
�.
0
o O W N
Coo
N M
< u
W oI
a
a
a
u
z
]y O
W d
N
O H u�3
u
Q >+
oza
Q w O
z z � N
a
u
O a Q
W a °O
a z A N
O � w
z
W ~
z N
Q
Lzl
Ei7
O
a
d
a
z
O
d
U_
O
E-r
Cn
x
O
O
O
n L
O
M N 0ON
00 N
O
r+ �D
N �D U*) to
00 It 00
O .~i
In N O �o M
ONO t�f)
to
pO
O
L
N M m
N M
n N n� N
000 N N
0p0 M
N
M•
00
D1 In
ri M
O ti n
M l�
O M 00
e� 00 N
N
M
e-+
N
O M
to
O I, N �D
N 00 M
M O N O
O O O
80 In
N
O r
M n 000
0 N M O
OMO 00 Lmn
O O
O
O O 8
O N
pp - N N LO
00 \D
ti
Ln
ONO
to M N O
ONO
O m
N0 00
N M ti .� M
eM� N"
O �--� M
y � --,
M
N
00
N
m 00
O cM
M
O
ER
O N It
M C7\
C—) O M
eM �D
L� 00
ch
cr\
M
N 00
�o N
N \O Ln pp 'D M
Ln M �O M
N O M
00 M 00
O O
N M
Op
to
ppti
c�+N�J
O\0
N
000 M
tin O
p00
� �--� N N
a, N eN+
M
N
M
M D ri
c i �p
M cYi
t*i
N
fJS
v
rnOM o
m°8 o�0
LOmM
�oN0"'D \0No
00NLl
°O-I
L H
\D
" N m
N
N 0 ti M M
'D
N
¢,
Ln D
00
� D\ M n
-O 000
\O -V L
CO
O 00 N N 00
M MN
L N
M M
O
Ln
N M
M e N
eN
N M N
cM
\
v
c
M
i �:rnco
0
CD00m It
° -L
°O`�
o
0
O N
m
v N It \O
N
M e-� O
•d� 00 el+ N M
In OO •d�
00 d�
M
L�inn
h to o�
� m
rn m \0 m
� N "
DMc�\ �
M
p
N
r. LO
O
M
p
�D
t�
N lr N
M N e-+ �-r
�D O M
00
w.
N
O 00 N'
M .1
N L6 N
N
M
00 N
n
O c'ci
�O
ON 00 It O\ O 00
N
M N O
N
p Cl U i
O Ln
m
O N
N
e-+ N
00 00
O �--�
� N .-+
M �n N Tpp .-�
O N" L.n �D O
h N
N Q\ O
O
N
O
00 00
N
�6 O
\ M Q;
4 4 00 I_ M N
ti N 00
\0 N
N
v L,
O to
�o
M
to M
00 " N
�o n M
00 ON to
M D\ M n
N
n M
O N h
O, Ln
M
L,
Ln
I-i e-+
N ri 'i
4 c7
\O '-i
N
fAl
.~-i
v
v G
X u di
s�. w
m v U) v
> v Li. 6Gi o i0
Cd
L
I) v o a)
iO G y' y v u G v aJ v w v ., O y p
u w It a, G o S m v p t Z
is aGi A O .' o
p p v> v w W +� L� pu y C n u
U m w > G > (u a, y is cn
O. d a. OD W O % dJ , u u, p id m OGi L O
v u v y�> �D m a; v �A G 0 y w chi +a
�.°a0 a0 waU j 0 UuPL c E-wxu
u
M
LO
rn
C
0
0
Uoco
o —LO
�o�
N
CY) ca
O p w G, m ''• axJ G v �Y�± v
C� C. " O v u '" 3 > y
D yQy �° aF"i FL *� m y C4 w y v vi CO E
t0 c0 ++ Cn n + GJ W } p w G, F v .> m ai
p m a. u v w a G 0° .c ¢ x° ss
x°10 0 v y o y I" v w v > v G
� d G , c0 y y w . w0 y 0.i. > o
.ra' O �" Lo cu (y � ^ d � O GO co
GrJ C>,
v _
C s ca G .r k, w •� c w
f1 cu G w O `. �' y y w rn
.0 v O , >
S v 3 u a, N x
� � .� � x yc
G U� w a3i v v w G � cn
rJ o0 O n ai � N 's G •9 i G 5 b Gi. O 7 m O m
'' °D v v w 3 v CO y y fn c w
a .� ao d G> o U a.
w m v W, u N v a y e i W G
X 0 0 '> 4� y G �r O �, �y O O° aGi u "
E E" w �. y oo .� a, v I? 1] G aG U �, vi w
.. n a~, v m 'O bA v G w v >, p
C G CL Q o w tz rn
v b m U o a
O .b O v R, 3 y m o •u W G Q" v o: °" •jai
y. x ^: G O .0 O w
o o `3° >
bb 6
>
� o tea, o � o
po d a n °' > w o -
w vaa o $
d
w v v a v Mo
w =� v w S a o 3 >, -� > o w N
o v G O v~ m v v v �� bvp O 2 v CZ
~? Lf Tf N G 4 p> N O C v w Z
u G N p O p p C w N O ru, " n .2 v v N
Q) v v a, _ a5 v v oo .� U 3 c� ,� o
cc G u �. 'CS v O v ^O � a N O i y O �]
N O 0, a4 TJ O
N w w w G •° w0 p N R w U V) vi
O 0 v R
M U v v p. 0 xSl.. GG, N w y y OM 'O � v Cn
c• " u v O � O
�C o o ° v �° ° U v v >, .fl U yy°" i w a v o >
q 'C C v w ac". .. ,,,., O t0 y .bA r. td Cn � J] rC
° G S O u a 0 N cu v Q) v (C m ^� Q fl o
-0 ° wviu�m wvov y-0v� v.s.�X
v m ¢ o .d" , -2 � � � y > � y a a � R y � o � cn y
c�C vi ,0 3 t° w. �' ca G �.' Ew ca > run U "? ,ti a p > o '
cu S �; o v p a, G o ca m U a, 3 v Q y °N° G y G u .@ o
G a, v -5 o o U 4 >W,
°u v G w 3 U Im v> y w a u G 3 U) p— a u w o •2 [� a; v n G v 'w cu
i� v .N. N. o O cO '� O G n >C w }" O h° u N> v .v X p
° O V) n d y 0.. ca , o U N p u O N > u r>, ' v w
mo Q O 00 O. v y y DO m v y ` w o N w GN 0 ] m s v p > c,
N Q. N p 'O ti u U 'C
_p y U
Q U O m° w o G �°° v w a 0 0
o o u Cq 3Ca >~Swwcl,P..UUScnu > o
0
v
f1.
O
v
N
N
O
Q
m
0
N
S
O�
N
Agenda Item No. 10C
October 26, 2010
Page 104 of 156
COLLIER COUNTY
OTHER OBLIGATIONS PAYABLE FROM NON -AD VALOREM REVENUES
The County has other debt issues outstanding which are secured by and payable from specific
Non -Ad Valorem Revenues (excluding gas taxes and net revenues of the water and sewer enterprise
fund, neither of which are legally available to pay debt service on the Series 2010B Bonds). Such
indebtedness is summarized below:
Description
Capital Improvement and
Refunding Revenue Bonds,
Series 2003
Capital Improvement and
Refunding Revenue Bonds,
Series 2005
Special Obligation Revenue
Bonds, Series 2010
TOTALS:
Source of Security
Half -Cent Sales Tax
Half -Cent Sales Tax
Covenant to Budget and
Appropriate Non -Ad
Valorem Revenues
Amount
Outstanding(') Final Maturity
$35,505,000
$137,820,000
$59,895,000
10/01/2033
10/01/2035
7/01/2034
Maximum
Annual Debt
Service on a Per
Issue Basis(z)
$2,990,031
$12,543,769
$4,053,000
X19,580,316
(l) The amount outstanding on each bond issue is calculated as of October 1, 2010.
(Z) Maximum Annual Debt Service is calculated by fiscal year, on a per issue basis.
(3) The County's $25,200,000 of Capital Improvement Revenue Bonds, Series 2002, are not included in
this table because the County intends to refinance all of such debt with proceeds of the Series
2010B Bonds. See "PLAN OF REFUNDING" herein.
Since there is no lien on the Non -Ad Valorem Revenues in favor of the Holders of the Series
2010B Bonds, the exercise of remedies by the holders of the other obligations heretofore or hereafter
issued which are payable from Non -Ad Valorem Revenues may result in the payment of debt service on
any such obligations prior to the payment of debt service on the Series 2010B Bonds.
CERTAIN FINANCIAL MATTERS
Financial and Operating Plan (Budget) and Capital Improvement Planning Policy
The County's budget is adopted by the Board no later than September 30th of each year, and the
County's budget has consistently received the Government Finance Officers Association of the United
States and Canada ( "GFOA ") Certificate of Achievement for its budget presentations since the County
began participation in the program in 1988. The County utilizes the following procedures in establishing
the budgetary data reflected in its financial statements:
125694/002/00469358.DOCA) 23
Agenda Item No. 10C
October 26, 2010
Page 105 of 156
1. Prior to October 151, the County prepares a proposed operating budget for the subsequent
fiscal year. The operating budget includes proposed expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. Prior to October 1st, the budget is legally adopted through passage of a resolution.
4. Formal budgetary integration is employed as a management control device during the
year for the County funds.
5. Budgets for all County funds are adopted on a basis consistent with generally accepted
accounting principles.
6. Expenditures may not legally exceed budgeted appropriation at the fund level.
The County maintains a five -year Capital Improvement Program which is updated annually in
connection with the adoption of the budget. Proposed projects are prioritized and funds are allocated to
projects according to their order of priority. The 5 -year strategic capital plans which are part of the policy
coordinate capital needs and the impact of those capital needs on operating budgets.
Financial Reporting and Annual Audit
The GFOA has awarded a Certificate of Achievement for Excellence in Financial Reporting to the
County for its comprehensive annual financial report ( "CAFR ") in each year since the County began
participation in the program in 1986.
Florida law requires that an annual audit of each county's accounts and records be completed by a
firm of independent certified public accountants retained and paid for by such county. Ernst and Young
performed the audit for the fiscal year ended September 30, 2009. The audited financial statements for
the fiscal year ended September 30, 2009 appear as APPENDIX C attached hereto.
General Fund and Unincorporated Area Municipal Services Taxing District Fund
The General Fund and the Unincorporated Area Municipal Services Taxing District Fund are the
general operating funds of the County. They account for all financial resources except for those required
to be accounted for in any other fund. The largest source of revenue in these funds are ad valorem
taxation. Ad valorem taxes have not been pledged to secure the Series 2010B Bonds which means that the
County cannot be compelled to levy ad valorem taxes in order to pay debt service on the Series 2010B
Bonds. Revenues deposited in the General Fund and the Unincorporated Area Municipal Services Taxing
District Fund do not directly correspond to the Non -Ad Valorem Revenues from which debt service on
the Series 2010B Bonds is payable as some General Fund Revenues and MSTD Revenues are not legally
available to pay debt service on the Series 2010B Bonds. Operations are removed from the General Fund
and the Unincorporated Area Municipal Services Taxing District Fund only when they are deemed to be
true enterprise operations.
Although the Series 2010B Bonds are not payable from ad valorem taxation, approximately
76.75% of General Fund Revenues and MSTD Revenues which are collected by the County come from ad
valorem taxes. To the extent that the future collection of ad valorem tax revenues is adversely affected, a
125694/002/00469358.DOCA) 24
Agenda Item No. 10C
October 26, 2010
Page 106 of 156
larger portion of non -ad valorem revenues would be required to balance the budget and provide for the
payment of services and programs which are for essential public purposes affecting the health, safety and
welfare of the inhabitants of the County or which are mandated by applicable law.
The following chart shows information regarding the General Fund and the Unincorporated Area
Municipal Services Taxing District Fund (no Capital Projects Funds and no other funds in the Special
Revenue Funds are included in the chart) for the County's fiscal years ending September 30, 2004 through
and including September 30, 2010 (figures from the fiscal year ending September 30, 2010 are estimates
only and are unaudited) (neither Impact Fee Proceeds or associated expenditures are included in such
chart):
[Remainder of page intentionally left blank]
125694/002/00469358.DOCv4} 25
�O M to M O 00 N
O M CT CT
tri .
Cl) M eM 00 CT ON
m m m m m �o M
t�- O Op \O
Lf) N
\0
— " cri N
Lf) M O M ti 00 CT
e�-i` N O ri
r,y N
00 Lr) O n n ti t-y
M M M M tf` 'O
000 M dpi ,Mr N ,M.y N
N
'0d6 ' I- O '-i cr tl�l
',•i N
O a0 N n N N 'ltl CT ef•
h �
00 O ti t(j L6 Cri p�
O Lf) O \O 8 CT CSC
"t' Ln M o rr
0 � m m N
"0 "I
ti CT N N Cn 00 DO
L� �O CT O 00 00
L6 N 00 tri L� L N
'W t\ M In CT �O
M O\ CT e-y
Lo 'L-+ N �O CT O Lf) .� N
N LO -tt
N `00
N 000 O
00 n�
N
cn
00 Cn S
N L M
N
OMO O �
N pOppp e-.
N � N
N e-i
to rn o
�t8
t\ ri CT
N O �,
M N m�
00 rr
N
0 00 N
00 Y
CD tci
ti N
N
M��i 0�0
M N
r N N M eNr
eM �--i
'fir 00 v M N ONO
ti En
tfi N h M 00 O N
�•'•� U-) M CT N 00 tf')
ti "r M m «i �0
O Lo L n O� \O
ti 00 N
00 M N N C, �
M v � 0000
N N M f)
000 0 0 O N
0000 a\
rn
'It C7\ Cri L� L�
N CT L� n
O � ti cri
n I a N N d
�--� C , V' eM CT
t� N 00 cn W 00 00 M e--i
00
�t oo to o o ao m ao to m o m
�rtnmti��,n00c�
N N [� O tc') u� �0 N N to M 000 tfj ONi
I'ti M �D �ti r-i
I'D 00 4 4 U) 000 ti m es ti�� N O N
t1) M N ti M N 00 C7\ rr ti O �--�
M O 00 00 M eN e-r O �0 �O tf) '0dO' C,
r. c.y e-. O l� N
N Vi
v
w
_o y
I y m
xP. w u
w p� C
0�i U] M u
O cV. OD 0.i Ci
> > r. v s cc
,U u O. o °' c� p xo
q° w
� w
w C7a wxUQUE°wp� E o� �, (3)
E z fd W
v
2.
O
2
O
O
w
U
O
M
Eg
S
00
N
N
C :)
r. o
CV w
-O
:) r.,
C)
d
L
O
L
fC1
o
0
O
'a 00 �
W N
C
N
CA
& r07 n ONp O O a,
�p M
CD
I- N
n a�
N
06
O I
NO0
O OO
CA
M li a0
N
N ti
N
CO
fg CO
CT tf) 00 O O 00 ups O ,...
M tf) OMO 00 00
00
� M i 00
CT
tf 'a 00
NI
ti M
ati ,
00 M
M
V3
M
W
1
00 V' rr eM
� O
N
W
000 'M-. ONO M O omo
c
LO
> W
n
—i t,� ti
ti
W V
O
N
I
M N
N N t ON ti
Q
ON
N ccj m
N
a
Q
�
O Q
z
M G M 'cM N to I�
h N N tf') N
wz
OI
m rr rr oo n 00 to
n N ri N C7
M
l�
i Q w
O
N �0 N M � M n
ON
N
N m "
z Z
v
N Q
W
oa'rnrnoN (o m
to
o Co rr to m �
CA
00
ao N � Cl Lf) 00 M 'cM
N
OI
c� 000 M 000 .M. N 'd �Ni
N
c-'
0000 N Lf) ... N
z
N 'cM
O
Q
�
m
W
zw
o�opp��wc00MC�� 1'4C\r,L
�D �0
O
d+
oO N Cn "0 \0 Co
c'7 O 00 M ti N I�r tri 00
O
U
NI
11, M d0 O N t m n
bq n
� N
Ci
0J
v
S
N
m cn v
lz >
E v
0 u" w v v
v
y o d v
v
0o v 1
e e
v
v u
HaSuwS uvaiE"
�O M to M O 00 N
O M CT CT
tri .
Cl) M eM 00 CT ON
m m m m m �o M
t�- O Op \O
Lf) N
\0
— " cri N
Lf) M O M ti 00 CT
e�-i` N O ri
r,y N
00 Lr) O n n ti t-y
M M M M tf` 'O
000 M dpi ,Mr N ,M.y N
N
'0d6 ' I- O '-i cr tl�l
',•i N
O a0 N n N N 'ltl CT ef•
h �
00 O ti t(j L6 Cri p�
O Lf) O \O 8 CT CSC
"t' Ln M o rr
0 � m m N
"0 "I
ti CT N N Cn 00 DO
L� �O CT O 00 00
L6 N 00 tri L� L N
'W t\ M In CT �O
M O\ CT e-y
Lo 'L-+ N �O CT O Lf) .� N
N LO -tt
N `00
N 000 O
00 n�
N
cn
00 Cn S
N L M
N
OMO O �
N pOppp e-.
N � N
N e-i
to rn o
�t8
t\ ri CT
N O �,
M N m�
00 rr
N
0 00 N
00 Y
CD tci
ti N
N
M��i 0�0
M N
r N N M eNr
eM �--i
'fir 00 v M N ONO
ti En
tfi N h M 00 O N
�•'•� U-) M CT N 00 tf')
ti "r M m «i �0
O Lo L n O� \O
ti 00 N
00 M N N C, �
M v � 0000
N N M f)
000 0 0 O N
0000 a\
rn
'It C7\ Cri L� L�
N CT L� n
O � ti cri
n I a N N d
�--� C , V' eM CT
t� N 00 cn W 00 00 M e--i
00
�t oo to o o ao m ao to m o m
�rtnmti��,n00c�
N N [� O tc') u� �0 N N to M 000 tfj ONi
I'ti M �D �ti r-i
I'D 00 4 4 U) 000 ti m es ti�� N O N
t1) M N ti M N 00 C7\ rr ti O �--�
M O 00 00 M eN e-r O �0 �O tf) '0dO' C,
r. c.y e-. O l� N
N Vi
v
w
_o y
I y m
xP. w u
w p� C
0�i U] M u
O cV. OD 0.i Ci
> > r. v s cc
,U u O. o °' c� p xo
q° w
� w
w C7a wxUQUE°wp� E o� �, (3)
E z fd W
v
2.
O
2
O
O
w
U
O
M
Eg
S
00
N
N
r
O O
Z N Cc _O
a) N
O C;) 0 U
. co
C0
N
Q
O
0 0 O b
G. v
d
X, o
b v
m v �'
cn o v U° a
° 3 a
ca
p
wo N O
4 V U 0 o
x ° 0 p p m N v
F� a"i G w v u
tu °: v
N 45
r�S oti
O
—(. v 0
to
-y id
0) ,� y O O
o " U
w w .� •� U v
to a v o
Q) v g �°
m o,� v U)
3 " o v
U o
o
C! 0
U N O
O 0 °
O
�o y U cn m
N b 'o W, 5 LX
.-. i
v " Q
M CU 0 dJ
CX 5 tC +7
m M o O a °
U 00 U �O N
�
'z 00
o 0 U �
C N.
v v >'' y w U W + N
N °clti p
GJ � ' " U N
0o b "
.0 g �
w
cu u
v m 00
O = > " ' OA
f1. � y�y < 'd o� U
O 'd
Oc°*inwin UUO �
v
v
v
0
"
v
b
O
q
LO
g
N
O
O
O,
N
Agenda Item No. 10C
October 26, 2010
Page 109 of 156
While the table above is not intended to represent revenues of the County which would
necessarily be available to pay debt service on the Series 2010B Bonds, they are an indication of the
relative amounts of legally available non -ad valorem revenues of the County which may be available for
the payment of principal of and interest on the Series 2010B Bonds taking into account general
governmental expenditures. The ability of the County to appropriate Non -Ad Valorem Revenues in
sufficient amounts to pay the principal of and the interest on the Series 2010B Bonds is subject to a variety
of factors, including the County's responsibility to provide for the payment of services and programs
which are for essential public purposes affecting the health, safety and welfare of the inhabitants of the
County or which are mandated by applicable law and the obligation of the County to have a balanced
budget. No representation is being made by the County that any particular non -ad valorem revenue
source will be available in future years, or if available, will be budgeted to pay debt service on the Series
2010B Bonds.
Continued consistent receipt of Non -Ad Valorem Revenues is dependent upon a variety of
factors, including formulas specified under Florida law for the distribution of certain of such funds which
take into consideration the ratio of residents in unincorporated areas of the County to total County
residents. Aggressive annexation policies by municipalities in the County or greater growth in the
incorporated areas of the County as compared to unincorporated areas could have an adverse effect on
certain non -ad valorem revenues. The amounts and availability of any of the Non -Ad Valorem Revenues
to the County are also subject to change, including reduction or elimination by change of State law or
changes in the facts or circumstances according to which certain of the Non -Ad Valorem Revenues are
allocated. In addition, the amount of certain of the Non -Ad Valorem Revenues collected by the County is
directly related to the general economy of the County. Accordingly, adverse economic conditions could
have a material adverse effect on the amount of non -ad valorem revenues collected by the County. The
County may also specifically pledge certain of the Non -Ad Valorem Revenues or covenant to budget and
appropriate legally available non -ad valorem revenues of the County to future obligations that it issues.
In the case of a specific pledge, such Non -Ad Valorem Revenues would be required to be applied to such
obligations prior to paying the principal of and interest on the Series 2010B Bonds.
Classification of Local Government Expenditures
The County classifies its expenditures in accordance with the Uniform Accounting System
devised by the FDFS.
General government expenditures arise from operations of legislative, judicial and administrative
activities of the local government. These costs are related to operations of the Board, the County
Manager's office, comprehensive planning, financial operations, legal expenses, court services and other
general government services.
Public safety expenditures reflect all costs provided to achieve a satisfactory living environment
for the community and its citizens which include expenditures for the County's Sheriff and fire
department operations, as well as emergency disaster relief services and protective inspections.
Physical environment expenditures relate to the County's conservation and natural resource
management efforts.
Transportation expenditures generally reflect the costs of roads, bridges and streets.
125694/002/00469358.DOCv41 28
Agenda Item No. 10C
October 26, 2010
Page 110 of 156
Economic environment expenditures include the costs of providing economic development
activities, housing opportunities and related programs, and other activities intended to raise the
economic status of the citizenry.
Human services expenditures reflect the County's activities related to the care treatment and
control of mental and physical illness and similar services.
Culture and recreation expenditures include the County's costs of operating parks and recreation
facilities and of offering special events, cultural services and programs and similar services.
Capital outlay expenditures include expenditures which result in the acquisition of, or addition to,
fixed assets such as buildings, land and roads.
Debt service expenditures are used to account for principal and interest payments on local
government debt.
RETIREMENT PLAN AND OTHER POST EMPLOYMENT BENEFITS
County OPEB
General
In accordance with Section 112.0801, Florida Statutes, the County provides post retirement health
care to all employees who retire from the employ of the County. This is administered via a single -
employer defined benefit healthcare plan (the "County Plan"). In most cases, the retiree pays 100% of the
premium cost for the retiree to participate in the County's insurance program. As a rule, the cost of
health care increases with age. Thus age- adjusted healthcare premiums for active employees can
normally be expected to be less than age- adjusted premiums for retirees. When a single premium is
established for both active employees and retirees, the retiree benefits from a lower premium.
Governmental Accounting Standards Board ( "GASB ") Statement No. 45 describes such an arrangement as
an implicit rate subsidy and mandates that any retiree savings be treated as Other Post Employment
Benefits ( "OPEB ") even though the employer makes no payments directly on behalf of retirees. The
County Plan provides healthcare benefits including medical coverage, prescription drug benefits, vision
care, dental care and life insurance coverage to both active and eligible retired employees. Eligibility for
participation in the County Plan is limited to full time employees of the County, employees who are
active participants in the County Plan at the time of retirement, who retire and are either vested with the
Florida Retirement System ( "FRS "), are vested in the FRS and are age 62, have 30 years of creditable
service before age 62, or meet alternative criteria if disabled or a member of a Special Risk Class.
Surviving spouses or dependents of participating retirees may continue in the County Plan if eligibility
criteria specific to those classes are met. In an open session, the County approves the County Plan rates
for the enrollment period, and may amend the County Plan with changes to the benefits, premiums
and /or levels of participant contribution at any time. In addition, the Board offers an OPEB option that
subsidizes the cost of health care for its retirees who have at least 60% of eligible accrued sick leave
remaining at the time of retirement and have completed 15 years of continuous service with the Board. In
addition, the retiree must retire from the County, be at least 55 years of age or have completed 30 years of
service under the FRS and be eligible to receive an FRS benefit with no break in time. Such employees are
eligible to receive a 50% to 100% subsidy toward the cost of coverage under the active County Plan. The
(25694/002/00469358.DOCv4) 29
Agenda Item No. 10C
October 26, 2010
Page 111 of 156
Tax Collector offers an OPEB plan that subsidizes 100% the cost of health care for employees with 10
years of service, between the ages of 54 and 64 and who exchange 800 hours of sick leave at retirement.
However, such plan does not issue a separate financial report.
In 2009, Board employees meeting certain eligibility requirements were offered access to a
Voluntary Separation Incentive Program ( "VSIP "). The requirements for eligibility were that the
employee had to be eligible to retire without penalty under FRS. Eligible employees had three options
under VSIP:
Option 1: Medical and dental coverage for a period of three years, with employee
enrollment in the plans as of the date the election is made. If the employee has waived coverage,
the employee will be enrolled in the $500 deductible medical plan and basic dental plan at the
single coverage level. The Board will cover costs including both the employer and employee
portions of the medical and dental premiums during the coverage period.
Option 2: Employee receives a cash incentive in lieu of three years of medical and dental
benefits. The employee will receive a cash payment equivalent to 50% of the average value of
three years' medical and dental plan premiums, less applicable payroll taxes.
Option 3: Employee receives medical and dental benefits until they reach age 65 with a
cash incentive for remaining months under the plan. The employee is enrolled in the plans as of
the date the election is made. If the employee has waived coverage, the employee will be
enrolled in the $500 deductible medical plan and basic dental plan at the single coverage level.
The Board will cover costs including both the employer and employee portions of the medical
and dental premiums during the coverage period. As of the first of the month following the
date when an employee reaches age 65, the employee will be entitled to receive a one -time cash
payment equivalent to 50% of the average monthly value of the medical and dental plan
premiums, less applicable payroll taxes, for the remaining months in which the employee is
eligible to participate under the plan.
At September 30, 2009, the date of the latest actuarial valuation, County Plan participation
consisted of:
Primary Government
Active County Plan Participants 2,261
Retirees and Beneficiaries Receiving Benefits 100
Total Membership 2,361
Funding Pol&
The County has not authorized a Qualifying Trust or Agency Fund for its OPEB liability. The
County does, however, have the authority to establish and amend a funding policy. For the fiscal year
ended September 30, 2009, the County contributed $658,599 to the County Plan.
{25694/002/00469358.DOCv4) 30
Agenda Item No. 10C
October 26, 2010
Page 112 of 156
Annual OPEB Cost, Net OPEB Obligation and Accrued Actuarial Liability Amount
The County's annual cost (expense) for OPEB is calculated based on the Annual Required
Contribution ( "ARC ") an amount actuarially determined in accordance with GASB Statement No. 45. The
ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost
each year and amortize any unfunded actuarial liability over a period not to exceed 30 years. As of the
September 30, 2009 actuarial valuation date, the County's net OPEB obligation was $355,020 and its
unfunded accrued actuarial liability ( "UAAL ") was $5.8 million, all of which was unfunded. The covered
payroll (annual payroll of active employees covered by the County Plan) was $164.9 million, and the ratio
of the unfunded actuarial accrued liability to covered payroll was 3.5 %.
Sheriffs OPEB
General
The Sheriff offers an OPEB plan that subsidizes the cost of health care for its retirees who have six
years of creditable service with the Sheriff and who receive a monthly retirement benefit from the FRS
(the "Sheriff Plan"). The Sheriff subsidizes approximately 20% for single coverage and 21% for family
coverage for qualifying individuals. Additionally, in accordance with Section 112.0801, Florida Statutes,
Sheriffs employees who retire and immediately begin receiving benefits from the FRS have the option of
paying premiums to continue in the Sheriff's health insurance plan at the same group rate as for active
employees. The Sheriff Plan does not issue a publicly available financial report.
Begriming in 2009, employees meeting certain eligibility requirements were offered an Early
Voluntary Separation Program. Eligibility requirements were that the employee had to be eligible to
retire without penalty under FRS or have 20 years of service with the Sheriff's Office, have a specified
base salary and meet the requirements for retirement in good standing. In addition, employees had to
meet the eligibility requirements between April 17, 2009 and retire no later than May 11, 2009. Employees
who met the eligibility requirements prior to April 17, 2009 and September 30, 2009 could choose to retire
between two weeks after the final date and September 28, 2009. Eligible employees had the following
options:
Option 1: Medical coverage for a period of three years at no more than the current
coverage level. If the employee had waived coverage, he /she would be eligible for single
coverage.
Option 2: A combination of insurance coverage and a cash payment.
Employee could then supplement with the conversion of 100% of accumulated sick leave to
additional coverage beyond the three year period.
At September 30, 2009, the date of the latest actuarial valuation, Sheriff Plan participation
consisted of:
125694/002/00469358.DOCv4l 31
Agenda Item No. 10C
October 26, 2010
Page 113 of 156
Sheriff
Sheriff Plan Participants 1,319
Retirees Receiving Benefits 92
Total Membership 1,411
Fundin,g PoliCY
The Sheriff has the authority to establish and amend funding policy. For the year ended
September 30, 2009, the Sheriff contributed $876,138 to the Sheriff Plan. No trust or agency fund has been
established for the Sheriff Plan.
Annual OPEB Cost and OPEB Obligation
The annual cost of the Sheriff Plan is calculated based on the ARC, an amount actuarially
determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of
funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize
any unfunded actuarial liability over a period not to exceed 30 years.
The contributions made for the 2009 fiscal year were 65% of the annual OPEB cost. Information
for the two preceding fiscal years is not available as GASB Statement No. 45 was implemented this fiscal
year. As of September 30, 2008 actuarial valuation date, the Sheriff Plan was 0% funded, the actuarial
accrued liability for benefits was $9,354,088, and the actuarial value of assets was $0, resulting in an
UAAL of $9,354,088. As of the September 30, 2009 actuarial valuation date, the Sheriff Plan was 0.0%
funded, the actuarial accrued liability benefits was $14,171,709, and the actuarial value of assets was $0,
resulting in a UAAL of $14,171,709. The covered payroll (annual payroll of active employees covered by
the Sheriff Plan) was $123.3 million, and the ratio of the UAAL to the covered payroll was 11.5 %.
FLORIDA CONSTITUTIONAL LIMITATIONS AND PROPERTY TAX REFORM
By voter referendum held on November 3, 1992, Article VII, Section 4 of the Florida Constitution
was amended by adding thereto a subsection which, in effect, limits the increases in assessed just value of
homestead property to the lesser of (1) three percent of the assessment for the prior year or (2) the
percentage change in the Consumer Price Index for all urban consumers, U. S. City Average, all items
1967 =100, or successor reports for the preceding calendar year as initially reported by the United States
Department of Labor, Bureau of Labor Statistics. Further, the amendment provides that (1) no
assessment shall exceed just value, (2) after any change of ownership of homestead property or upon
termination of homestead status such property shall be reassessed at just value as of January 1 of the year
following the year of sale or change of status, (3) new homestead property shall be assessed at just value
as of January 1 of the year following the establishment of the homestead, and (4) changes, additions,
reductions or improvements to homestead shall initially be assessed as provided for by general law, and
thereafter as provided in the amendment. This amendment is known as the "Save Our Homes"
amendment. The effective date of the amendment was January 5, 1993 and, pursuant to a ruling by the
Florida Supreme Court, it began to affect homestead property valuations commencing January 1, 1995,
with 1994 assessed values being the base year for determining compliance.
{25694/002/00469358.DOCv4l 32
Agenda Item No. 10C
October 26, 2010
Page 114 of 156
In the 1994 general election, Florida voters approved an amendment to the Florida Constitution
which is commonly referred to as the "Limitation On State Revenues Amendment." This amendment
provides that state revenues collected for any fiscal year shall be limited to state revenues allowed under
the amendment for the prior fiscal year plus an adjustment for growth. Growth is defined as an amount
equal to the average annual rate of growth in Florida personal income over the most recent twenty
quarters times the state revenues allowed under the amendment for the prior fiscal year. State revenues
collected for any fiscal year in excess of this limitation are required to be transferred to a budget
stabilization fund until the fund reaches the maximum balance specified in the amendment to the Florida
Constitution, and thereafter is required to be refunded to taxpayers as provided by general law. The
limitation on state revenues imposed by the amendment may be increased by the Legislature, by a two -
thirds vote in each house.
The term "state revenues," as used in the amendment, means taxes, fees, licenses, and charges for
services imposed by the legislature on individuals, businesses, or agencies outside state government.
However, the term "state revenues" does not include: (1) revenues that are necessary to meet the
requirements set forth in documents authorizing the issuance of bonds by the State; (2) revenues that are
used to provide matching funds for the federal Medicaid program with the exception of the revenues
used to support the Public Medical Assistance Trust Fund or its successor program and with the
exception of State matching funds used to fund elective expansions made after July 1, 1994; (3) proceeds
from the State lottery returned as prizes; (4) receipts of the Florida Hurricane Catastrophe Fund; (5)
balances carried forward from prior fiscal years; (6) taxes, licenses, fees and charges for services imposed
by local, regional, or school district governing bodies, or (7) revenue from taxes, licenses, fees and charges
for services required to be imposed by any amendment or revision to the State Constitution after July 1,
1994. This amendment took effect on January 1, 1995, and was first applicable to the State's fiscal year
1995 -96. Whether the limitation will have practical impact in the future is not known. To the extent Non -
Ad Valorem or any portion thereof constitute "state revenues" which are subject to and limited by the
Limitation on State Revenues Amendment, the future distribution of increases in such Non -Ad Valorem
Revenues or any portion thereof to the County may be adversely affected by the Limitation on the State
Revenues Amendment.
The Florida Legislature recently initiated a substantial review and reform of Florida's property
tax structure. During a special legislative session that ended on June 14, 2007, the Florida Legislature
adopted Chapter 2007 -321, Laws of Florida, a property tax plan which may significantly impact ad
valorem tax collections for Florida local governments. One component of the adopted legislation required
counties, cities and special districts to rollback their millage rates for the 2007 -08 fiscal year to a level that,
with certain adjustments and exceptions, would generate the same level of ad valorem tax revenue as in
fiscal year 2006 -07; provided, however, depending upon the relative growth of each local government's
own ad valorem tax revenues from 2001 to 2006, such rolled back millage rates were determined after
first reducing 2006 -07 ad valorem tax revenues by zero to nine percent (0% to 9 %). In addition, the
legislation limits how much the aggregate amount of ad valorem tax revenues may increase in future
fiscal years. School districts are not required to comply with these particular provisions of the legislation.
A local government may override certain portions of these requirements by a supermajority, and for
certain requirements, a unanimous vote.
The County fell into the 9% ad valorem tax revenue reduction category. As a result, the County's
General Fund millage rate was reduced from $3.5790 per $1,000 in fiscal year 2006 -07 to $3.1469 per
$1,000 in fiscal year 2007 -08. The County's general millage rate remained the same for the fiscal year
2008 -09. While the constitutional amendments which passed on January 29, 2008 did not impact the
{25694/002/00469358.DOCv4) 33
Agenda Item No. 10C
October 26, 2010
Page 115 of 156
County's fiscal year 2007 -08 budget, they did have an impact on the approach the County took to
formulate the budget for fiscal year 2008 -09 and beyond. On September 23, 2010, the Board adopted a
General Fund millage rate of $3.5645 per $1,000 for fiscal year 2010 -11 which is equal to the millage rate
which was adopted by the Board for the previous two fiscal years.
In addition to these rollbacks, on October 29, 2007, the Florida Legislature adopted a tax reform
package that includes Senate Joint Resolution 2D, Senate Bill 4D (an implementing bill) and Senate Bill
6D, a special election bill. The Joint Resolution 2D required approval by Florida voters, which occurred
on January 29, 2008. Such approval enacted the following ad valorem tax reforms: (1) an exemption of
an additional $25,000 of the assessed value of homestead property (to be applied on the assessed value
between $50,000 and $75,000) (provided however, this reform does not apply to school boards); (2) a cap
of 10 percent on yearly assessment increases on non - homestead residential and commercial property
(provided however, this reform does not apply to school boards); (3) portability of the three percent cap
on homestead residential property, up to $500,000, when relocating to a new home in the state; and (4) a
$25,000 exemption from the tangible personal property tax. The 10 percent cap began affecting
assessments beginning on January 1, 2009. All other reforms took effect retroactive to January 1, 2008.
Although no further action is required on the part of the Florida Legislature to implement these
amendments, a lawsuit challenging the constitutionality of at least part of the amendments was filed
prior to the January 2008 referendum approval by the voters. In Bruner v. Hartsfield filed in the Circuit
Court in and for Leon County, Florida in November 2007, new Florida homestead owners (having paid
ad valorem taxes for the past four years) filed a class action lawsuit challenging the constitutionality of
the State statute which limits the increases in assessed just value of homestead property to the lesser of (a)
3% of the assessment for the prior year or (b) the percentage change in the Consumer Price Index for all
urban consumers, U.S. City Average, all items 1967 =100, or successor reports for the preceding calendar
year as initially reported by the United States Department of Labor, Bureau of Labor Statistics (referred to
as "Save Our Homes ") and the portability provision. The lawsuit alleges that Save Our Homes constitutes
an unlawful residency requirement for tax benefits on substantially similar property, in violation of the
State Constitution's Equal Protection provisions and the Privileges and Immunities Clause of the
Fourteenth Amendment to the United States Constitution. The lawsuit argues that the portability
provision simply extends the unconstitutionality of the tax shelters granted to long -term homeowners by
Save Our Homes. The lawsuit requests a declaration of the unconstitutionality of both provisions and
injunctive relief preventing continued application of those provisions. On October 27, 2008, the Circuit
Court dismissed with prejudice the Complaint. The plaintiff appealed to the First District Court of
Appeals. On November 17, 2009, the First DCA upheld the trial court's ruling and ruled that the Save
Our Homes portability provisions are constitutional. The plaintiff has appealed this decision to the
Florida Supreme Court.
On October 18, 2007, the same Circuit Court in and for Leon County, Florida, in Lanning v.
Pilcher, a case filed by out -of -state residents challenging the constitutionality of the Save Our Homes
assessment cap, rejected the plaintiffs arguments that the Save Our Homes assessment cap violates either
the Commerce Clause or the Privileges and Immunities Clause of the U.S. Constitution or the Equal
Protection Clause of either the U.S. or State Constitutions and dismissed the plaintiffs' allegations with
prejudice. The Lanning Court noted that its decision was limited to the plaintiffs' complaints regarding
the Save Our Homes assessment cap. The plaintiff appealed to the First District Court of Appeals.
On August 26, 2009, the First District Court of Appeals upheld the lower court and ruled that the Save
Our Homes assessment cap is constitutional. The plaintiff has appealed this decision to the Florida
Supreme Court.
{25694/002/00469358.DOCv4) 34
Agenda Item No. 10C
October 26, 2010
Page 116 of 156
One or more lawsuits similar to Lanning v. Pilcher have been filed against other defendants in
the State. The allegations and relief requested by the plaintiffs in each of these cases are very similar,
except that the portability provision was not challenged in Lanning v. Pilcher since the case was filed
prior to the approval of the amendments implementing portability. As noted above, the Circuit Court
rejected such arguments in Lanning v. Pilcher with similarly situated plaintiffs.
In addition to the legislative activity described above, the constitutionally mandated Florida
Taxation and Budget Reform Commission (required to be convened every 20 years) (the "Commission ")
completed its meetings on April 25, 2008 and placed several constitutional amendments on the
November 4, 2008 General Election ballot. Three of such amendments were approved by the voters of
Florida, which will, among other things, do the following: (a) allow the Legislature, by general law, to
exempt from assessed value of residential homes, improvements made to protect property from wind
damage and installation of a new renewable energy source device; (b) assess specified working
waterfront properties based on current use rather than highest and best use; (c) beginning in 2010,
provide property tax exemption for real property that is perpetually used for conservation; and, for land
not perpetually encumbered, require the Legislature to provide classification and assessment of land use
for conservation purposes solely on the basis of character or use.
In May 2009, the Florida Legislature passed SB 532 which proposed a statewide referendum
placed on the November 2010 general election ballot for two measures: (i) an additional homestead
exemption for first -time homebuyers; and (ii) a 5% assessment limitation on all commercial and non -
homestead, residential property. However, on August 31, 2010, the Florida Supreme Court affirmed
lower court rulings to strike the amendment from the November ballot.
The Florida Legislature also adopted HB 833 in May 2009, which provides an additional
homestead exemption for deployed military personnel. The exemption would equal the percentage of
days during the prior calendar year that the military homeowner was deployed outside of the United
States in support of military operations designated by the legislature. This measure also requires
approval of Florida voters at the November 2010 General Election. If this measure is approved by the
voters, it would take effect January 1, 2011.
At the present time, it is impossible to predict the likelihood of such referenda being approved by
Florida voters or, if approved, the impact these measures would have on the County's financial condition.
Non -Ad Valorem Revenues do not include ad valorem tax revenues. However, pursuant to
the Resolution, funding requirements for essential governmental services of the County must be satisfied
prior to budgeting and appropriating Non -Ad Valorem Revenues for the payment of the Series 2010B
Bonds and other obligations payable from Non -Ad Valorem Revenues. Ad valorem revenues have
historically been used in part by the County to pay for services and programs which are for essential
public purposes affecting the health, safety and welfare of the inhabitants of the County. Therefore, a
decrease in ad valorem tax revenues may in turn increase the amount of Non -Ad Valorem Revenues
required to fund such services and programs and thereby reduce the amount of Non -Ad Valorem
Revenues available to be budgeted and appropriated to satisfy the obligations of the County under the
Resolution.
{25694/002/00469358.DOCv4} 35
Agenda Item No. 10C
October 26, 2010
Page 117 of 156
ESTIMATED SOURCES AND USES OF FUNDS
The proceeds to be received from the sale of the Series 2010B Bonds, together with other legally
available monies of the County, if any, are expected to be applied as follows:
SOURCES OF FUNDS:
Par Amount of Series 2010B Bonds .................................... ...............................
Plus/Minus: Net Original Issue Premium / Discount ....... ...............................
Plus: Other Legally Available Monies .............................. ...............................
TOTALSOURCES .............................................. ...............................
USES OF FUNDS:
Deposit to Escrow Deposit Fund
Costs of IssuanceM ................................. ...............................
...............................
TOTALUSES ......................................................................... ...............................
(1) Includes underwriter's discount and legal financial advisory fees and expenses.
[Remainder of this page intentionally left blank]
(25694/002/00469358.DOCv4) 36
Agenda Item No. 10C
October 26, 2010
Page 118 of 156
DEBT SERVICE SCHEDULE
The following table sets forth the annual debt service schedule for the Series 2010B Bonds.
Fiscal Year
Ending
September 30 Principal Interest
TOTAL
[Remainder of page intentionally left blank]
{25694/002/00469358.DOCv4) 37
Total
Debt Service
Agenda Item No. 10C
October 26, 2010
Page 119 of 156
INVESTMENT POLICY
The moneys held in the funds and accounts under the Resolution may only be invested in
Authorized Investments (as defined in the Resolution). The investment of surplus funds is currently
governed by the provisions of the County's Investment Policy, established by the Board under Section
218, Florida Statutes. The policy authorizes investment of surplus public funds in the permitted
investments described in Section 218.415, Florida Statutes.
Pursuant to a Board resolution, the Clerk of the Circuit Court (the "Clerk ") administers to the
investment policy for investment of such surplus funds. The investment policy establishes guidelines as
to the type, maturity, composition and risk relating to the County's investment portfolio.
Permitted investments pursuant to such investment policy include the following:
1. Florida Local Government Surplus Trust Fund (State Board of Administration ( "SBA "));
2. US Government Securities - Direct Obligations;
3. US Federal Agencies - Backed by Full Faith and Credit of US Government;
4. US Federal Instrumentalities - US Federal Agency Securities Not Backed by Full Faith
and Credit of US Government, except for Student Loan Marketing Association;
5. Certificates of Deposit - Collateralized with US Government Securities or Federal
Agencies;
6. Repurchase Agreements;
7. Fixed Income Mutual Funds - Collateralized with US Government Securities or Federal
Agencies;
8. Domestic Bankers Acceptances - Rated "AA" or higher, and inventory based;
9. Prime Commercial Paper - Rated "A -1" and "P -1;"
10. Tax - Exempt Obligations - Rated "AA" or higher and issued by state or local governments;
11. Now Account - Fully collateralized in accordance with Chapter 280, Florida Statutes
(limited to Depository Bank /Concentration Bank);
12. Variable Rate Securities only if the rate is a straight floating rate that is set in a direct, as
opposed to inverse, relationship to a single index; and
13. Mortgage Securities (CMOs) only if they are:
a. Issued by US Federal Agencies or US Federal Instrumentalities,
b. Pass the Federal Financial Investment Examination Council (FFIEC) test at time
of purchase, and
C. Have an average life of seven (7) years or less and have an absolute final
maturity of no more than fifteen (15) years at zero PSA. The term "zero PSA"
means that all interest and principal payments are guaranteed to be made by the
stated final maturity assuming no prepayments.
Specifically prohibited investments include the following:
1. Interest only strips of mortgaged backed securities;
2. Leveraged bonds;
3. Structured notes or financings other than mortgage securities that meet the provisions of
the investment policy (permit callable and step up coupons);
4. Variable rate securities that set a rate based on an inverse relationship to an index; and
5. Variable rate debt that sets a rate based on more than a single index.
{25694/002/00469358.DOCv4} 38
Agenda Item No. 10C
October 26, 2010
Page 120 of 156
The objective of the investment policy is to match investment cash flow and maturity with known
cash needs and anticipated cash flow requirements (i.e., match assets to liabilities) to the extent possible.
Investment of funds shall have final maturities of not more than five (5) years, except for:
1. SBA - no stated final maturity;
2. Certificates of Deposit -1 Year;
3. Repurchase Agreements - 90 Days;
4. Bankers Acceptances - 180 Days;
5. Prime Commercial Paper -180 Days;
6. Fixed Income Mutual Funds - no stated final maturity. However, underlying US
Government Securities and Federal Agencies have average maturity of 1 year;
7. Mortgage Securities - average life of 7 years or less and have an absolute final maturity of
no more than 15 years at zero PSA; and
8. US Government Securities and Federal Agencies deposited into an escrow account in
connection with the refunding of a County bond issue can have a final maturity of more
than 5 years.
Mortgage securities shall not be used to match liabilities that are reasonably definable as to
amount and disbursement date. Mortgage securities can only be used to invest funds associated with
reserves or liabilities that are not associated with a specifically identified cash flow schedule. Mortgage
securities can be used to prudently enhance the return on the portfolio.
Any and all exceptions to the investment policy require a vote of the majority of Board.
Furthermore, the Board may revise the aforementioned investment policy from time to time.
LEGAL MATTERS
Certain legal matters in connection with the issuance of the Series 2010B Bonds are subject to an
approving legal opinion of Nabors, Giblin & Nickerson, P.A., Tampa, Florida, Bond Counsel, whose
approving opinion (a form of which is attached hereto as "APPENDIX D — Form of Opinion of Bond
Counsel') will be available at the time of delivery of the Series 2010B Bonds. The actual legal opinion to
be delivered by Bond Counsel may vary from that text if necessary to reflect facts and law on the date of
delivery. Such opinion will speak only as of its date, and subsequent distribution of it by recirculation of
this Official Statement or otherwise shall create no implication that Bond Counsel has reviewed or
expresses any opinion concerning any of the matters referenced in the opinion subsequent to its date.
Bond Counsel has not been engaged to, nor has it undertaken to, review (1) the accuracy,
completeness or sufficiency of this Official Statement or any other offering material relating to the Series
2010B Bonds; provided, however, that Bond Counsel will render an opinion to the Underwriter of the
Series 2010B Bonds (upon which opinion only the Underwriter may rely) relating to the fairness of the
presentation of certain statements contained herein under the heading "TAX EXEMPTION' and certain
statements which summarize provisions of the Resolution, the Series 2010B Bonds, and federal tax law,
and (2) the compliance with any federal or state law with regard to the sale or distribution of the Series
2010B Bonds.
{25694/002/00469358.DOCv4} 39
Agenda Item No. 10C
October 26, 2010
Page 121 of 156
Certain legal matters will be passed upon by Jeffrey A. Klatzkow, Esq., County Attorney, and by
Bryant Miller Olive P.A., Tampa, Florida, Disclosure Counsel to the County.
LITIGATION
Except as described below, there is no pending or, to the knowledge of the County, any
threatened litigation against the County of any nature whatsoever which in any way questions or affects
the validity of the Series 2010B Bonds, or any proceedings or transactions relating to their issuance, sale,
execution, or delivery, or the adoption of the Resolution, or the covenant to budget and appropriate Non -
Ad Valorem Revenues in the manner and to the extent described herein and in the Resolution. Neither
the creation, organization or existence, nor the title of the present members of the Board, or other officers
of the County is being contested.
The Board has been named as a defendant in three related lawsuits, styled Francis Hussey, et al v.
Collier County, Case No. 08- 6933 -CA; Board of County Commissioners v. Francis D Hussey, et al., Case No. 08-
6988-CA consolidated with 08- 6933 -CA; and Sean Hussey, et al.. v. Collier County, et al., Case No. 08-7025 -
CA. On September 11, 2008, the Plaintiffs' Francis D. Hussey, Jr. and Mary P. Hussey, husband and wife,
and Winchester Lakes Corporation, a Florida corporation, filed an Inverse Condemnation suit seeking
monetary damages from Collier County, the Honorable Charlie Crist, the Governor of the State of Florida
and the Florida Department of Community Affairs. The Husseys contend that the designation of certain
real property owned by them by a Growth Management Plan Amendment adopted in 2002 had the effect
of precluding mining activities on property, thereby resulting in a substantial diminution in value of the
real estate, which the Plaintiffs contend to be compensable under Florida law. The Complaint alleges
damage claims, as of June, 2002, in the amount of $67,300,000, and as of July, 2007, in the amount of
$91,500,000. The Plaintiffs have also presented a claim for "inverse condemnation based on a regulatory
taking of Plaintiffs' property," in an amount not specified in the Complaint. The Wildlife Federation and
Collier County Audubon Society was granted leave to intervene in the suit by the Court on April 29,
2009. On July 9, 2009, the Florida Wildlife Federation and Collier County Audubon Society served upon
Defendants Francis and Mary Hussey a Notice of Intent to Sue over Violations of the Endangered Species
Act of 1973 (16 U.S.C. 1531 et sec .) Land Clearing of Primary Panther Habitat, RCW Foraging Habitat,
and Wood Stork Foraging Habitat. The cases are in the discovery stage. The County believes that this
litigation will be concluded with no risk of liability. Regardless, whether or not the plaintiffs are
successful, any potential liability is not expected to affect the County's ability to pay the principal and
interest on the Series 2010B Bonds.
The County experience other claims, litigation, and various legal proceedings which individually
are not expected to have a material adverse effect on the operations or financial condition of the County,
but may, in the aggregate, have a material impact thereon. In the opinion of the County Attorney,
however, except as noted above with respect to the County, the County will either successfully defend
such actions or otherwise resolve such matters without any material adverse consequences on the
financial condition of the County.
DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS
Pursuant to Section 517.051, Florida Statutes, as amended, no person may directly or indirectly
offer or sell securities of the County except by an offering circular containing full and fair disclosure of all
(25694/002/00469358.DOCv4) 40
Agenda Item No. 10C
October 26, 2010
Page 122 of 156
defaults as to principal or interest on its obligations since December 31, 1975, as provided by rule of the
Office of Financial Regulation within the Florida Financial Services Commission (the "FFSC "). Pursuant
to administrative rulemaking, the FFSC has required the disclosure of the amounts and types of defaults,
any legal proceedings resulting from such defaults, whether a trustee or receiver has been appointed over
the assets of the County, and certain additional financial information, unless the County believes in good
faith that such information would not be considered material by a reasonable investor. The County is not
and has not been in default on any bond issued since December 31, 1975 that would be considered
material by a reasonable investor in the Series 2010B Bonds.
The County has not undertaken an independent review or investigation of securities for which it
has served as conduit issuer. The County does not believe that any information about any default on
such securities is appropriate and would be considered material by a reasonable investor in the Series
2010B Bonds because the County would not have been obligated to pay the debt service on any such
securities except from payments made to it by the private companies on whose behalf such securities
were issued and no funds of the County would have been pledged or used to pay such securities or the
interest thereon.
TAX EXEMPTION
Opinion of Bond Counsel
In the opinion of Bond Counsel, the form of which is included as "APPENDIX D -- Form of Bond
Counsel Opinion" attached hereto, the interest on the Series 2010B Bonds is excludable from gross income
and is not a specific item of tax preference for federal income tax purposes under existing statutes,
regulations, rulings and court decisions; however, it should be noted that with respect to certain
corporations, such interest is taken into account in determining adjusted current earnings for the purpose
of computing the alternative minimum tax. Failure by the County to comply subsequently to the
issuance of the Series 2010B Bonds with certain requirements of the Code, regarding the use, expenditure
and investment of Series 2010B Bonds proceeds and the timely payment of certain investment earnings to
the Treasury of the United States, may cause interest on the Series 2010B Bonds to become includable in
gross income for federal income tax purposes retroactive to their date of issuance. The County has
covenanted in the Resolution to comply with all provisions of the Code necessary to, among other things,
maintain the exclusion from gross income of interest on the Series 2010B Bonds for purposes of federal
income taxation. In rendering its opinion, Bond Counsel has assumed continuing compliance with such
covenants.
Internal Revenue Code of 1986
The Code contains a number of provisions that apply to the Series 2010B Bonds, including,
among other things, restrictions relating to the use or investment of the proceeds of the Series 2010B
Bonds and the payment of certain arbitrage earnings in excess of the "yield" on the Series 2010B Bonds to
the Treasury of the United States. Noncompliance with such provisions may result in interest on the
Series 2010B Bonds being included in gross income for federal income tax purposes retroactive to their
date of issuance.
(25694/002/00469358.DOCv4) 41
Agenda Item No. 10C
October 26, 2010
Page 123 of 156
Collateral Tax Consequences
Except as described above, Bond Counsel will express no opinion regarding the federal income
tax consequences resulting from the ownership of, receipt or accrual of interest on, or disposition of, the
Series 2010B Bonds. Prospective purchasers of Series 2010B Bonds should be aware that the ownership of
Series 2010B Bonds may result in other collateral federal tax consequences. For example, ownership of
the Series 2010B Bonds may result in collateral tax consequences to various types of corporations relating
to (1) denial of interest deduction to purchase or carry such Series 2010B Bonds, (2) the branch profits tax,
and (3) the inclusion of interest on the Series 2010B Bonds in passive income for certain Subchapter S
corporations. In addition, the interest on the Series 2010B Bonds may be included in gross income by
recipients of certain Social Security and Railroad Retirement benefits.
PURCHASE, OWNERSHIP, SALE OR DISPOSITION OF THE SERIES 2010B BONDS AND THE
RECEIPT OR ACCRUAL OF THE INTEREST THEREON MAY HAVE ADVERSE FEDERAL TAX
CONSEQUENCES FOR CERTAIN INDIVIDUAL AND CORPORATE BONDHOLDERS, INCLUDING,
BUT NOT LIMITED TO, THE CONSEQUENCES DESCRIBED ABOVE. PROSPECTIVE SERIES 2010B
BONDHOLDERS SHOULD CONSULT WITH THEIR TAX SPECIALISTS FOR INFORMATION IN
THAT REGARD.
Other Tax Matters
Interest on the Series 2010B Bonds may be subject to state or local income taxation under
applicable state or local laws in other jurisdictions. Purchasers of the Series 2010B Bonds should consult
their own tax advisors as to the income tax status of interest on the Series 2010B Bonds in their particular
state or local jurisdictions.
During recent years, legislative proposals have been introduced in Congress, and in some cases
enacted, that altered certain federal tax consequences resulting from the ownership of obligations that are
similar to the Series 2010B Bonds. In some cases, these proposals have contained provisions that altered
these consequences on a retroactive basis. Such alterations of federal tax consequences may have affected
the market value of obligations similar to the Series 2010B Bonds. From time to time, legislative
proposals are pending which could have an effect on both the federal tax consequences resulting from
ownership of the Series 2010B Bonds and their market value. No assurance can be given that additional
legislative proposals will not be introduced or enacted that would or might apply to, or have an adverse
effect upon, the Series 2010B Bonds.
Tax Treatment of Original Issue Discount
Bond Counsel is further of the opinion that the difference between the principal amount of the
Series 2010B Bonds maturing on October 1 in the years through and including (collectively the
"Discount Bonds ") 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 such Discount Bonds of the same maturity was sold constitutes original issue
discount which is excludable from gross income for federal income tax purposes to the same extent as
interest on the Series 2010B Bonds. Further, such original issue discount accrues actuarially on a constant
interest rate basis over the term of each Discount Bond and the basis of each Discount Bond acquired at
such initial offering price by an initial purchaser thereof will be increased by the amount of such accrued
original issue discount. The accrual of original issue discount may be taken into account as an increase in
125694/002/00469358.DOCv4) 42
Agenda Item No. 10C
October 26, 2010
Page 124 of 156
the amount of tax - exempt income for purposes of determining various other tax consequences of owning
the Discount Bonds, even though there will not be a corresponding cash payment. Owners of the
Discount Bonds are advised that they should consult with their own advisors with respect to the state
and local tax consequences of owning such Discount Bonds.
Tax Treatment of Bond Premium
The difference between the principal amount of the Series 2010B Bonds maturing on October 1 in
the years through and including (the "Non- Callable Premium Bonds ") and on December 1,
(the "Callable Premium Bonds," and together with the Non - Callable Premium Bonds, the "Premium
Bonds ") 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 such Premium Bonds of the same maturity was sold constitutes to an initial purchaser amortizable
bond premium which is not deductible from gross income for Federal income tax purposes. The amount
of amortizable bond premium for a taxable year is determined actuarially on a constant interest rate basis
over the term of each Non - Callable Premium Bond and to the first optional call date in the case of
Callable Premium Bonds. For purposes of determining gain or loss on the sale or other disposition of a
Premium Bond, an initial purchaser who acquires such obligation in the initial offering to the public at
the initial offering price is required to decrease such purchaser's adjusted basis in such Premium Bond
annually by the amount of amortizable bond premium for the taxable year. The amortization of bond
premium may be taken into account as a reduction in the amount of tax - exempt income for purposes of
determining various other tax consequences of owning such Premium Bonds. Owners of the Premium
Bonds are advised that they should consult with their own advisors with respect to the state and local tax
consequences of owning such Premium Bonds. `
VERIFICATION OF ARITHMETICAL COMPUTATIONS
The accuracy of the arithmetical computation of the amounts deposited by the County in the
Escrow Deposit Fund to pay the principal, interest and redemption premium, if any, on the Refunded
Bonds will be verified for the County by the Verification Agent. Such verification will be based on certain
information supplied to the Verification Agent by Public Financial Management, Inc. and will be relied
upon by Bond Counsel in rendering the defeasance opinion described above under the heading "PLAN
OF REFUNDING."
RATINGS
Moody's Investors Service, Inc. ( "Moody's "), Standard & Poor's Ratings Services ( "S &P ") and Fitch
Ratings ( "Fitch ") have assigned ratings of "_" and ", respectively, to the Series 2010B Bonds.
The ratings reflect only the views of said rating agencies and an explanation of the ratings may be
obtained only from said rating agencies.
Generally, a rating agency bases its rating on information and materials and on investigations,
studies and assumptions furnished to and obtained and made by the rating agency. The rating reflects
only the view of said rating agency and an explanation of the rating may be obtained only from said
rating agency. There can be no assurance that such rating will continue for any given period of time or
{25694/002/00469358.DOCA) 43
Agenda Item No. 10C
October 26, 2010
Page 125 of 156
will not be revised downward or withdrawn entirely by such rating agency, if in its judgment
circumstances so warrant. Any such downward revision or withdrawal of the ratings of the Series 2010B
Bonds may have an adverse effect on the market price of the Series 2010B Bonds. The County undertakes
no responsibility to oppose any such revision or withdrawal. An explanation of the significance of the
ratings can be received from the following: Moody's Investors Service, 7 World Trade Center, 250
Greenwich Street, 23rd Floor, New York, New York 10007, Standard & Poor's, 55 Water Street, 38th Floor,
New York, New York 10041 and Fitch Ratings, One State Street Plaza, New York, New York 10004.
FINANCIAL ADVISOR
The County has retained Public Financial Management, Inc., Coral Gables, Florida, as Financial
Advisor in connection with the County's financing plans and with respect to the authorization and
issuance of the Series 2010B Bonds. The Financial Advisor is not obligated to undertake and has not
undertaken to make an independent verification or to assume responsibility for the accuracy,
completeness, or fairness of the information contained in the Official Statement. The Financial Advisor
did not participate in the underwriting of the Series 2010B Bonds. The Financial Advisor may receive a
fee for bidding investments for certain proceeds of the Series 2010B Bonds.
AUDITED FINANCIAL STATEMENTS
The general purpose financial statements of the County as of September 30, 2009 and for the year
then ended, attached hereto as "APPENDIX C — Audited Financial Statements for the Fiscal Year ended
September 30, 2009," have been audited by Ernst and Young, independent auditors, as stated in their
report appearing therein. Such statements speak only as of September 30, 2009. The consent of the
County's auditor to include in this Official Statement the aforementioned report was not requested, and
the general purpose financial statements of the County are provided only as publicly available
documents.
The Series 2010B Bonds are payable solely from Non -Ad Valorem Revenues in the manner and to
the extent as described in the Resolution and herein and are not otherwise secured by, or payable from,
the general revenues of the County. See "SECURITY FOR THE SERIES 2010B BONDS" herein. The
general purpose financial statements are presented for general information purposes only.
ENFORCEABILITY OF REMEDIES
The remedies available to the owners of the Series 2010B Bonds upon an event of default under
the Resolution are in many respects dependent upon judicial actions which are often subject to discretion
and delay. Under existing constitutional and statutory law and judicial decisions, including specifically
the federal bankruptcy code, the remedies specified by the Resolution and the Series 2010B Bonds may
not be readily available or may be limited. The various legal opinions to be delivered concurrently with
the delivery of the Series 2010B Bonds, including Bond Counsel's approving opinion, will be qualified, as
to the enforceability of the remedies provided in the various legal instruments, by limitations imposed by
bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors enacted
before of after such delivery. See "APPENDIX B — Form of the Resolution" attached hereto for a
description of events of default and remedies.
125694/002/00469358.DOCv41 44
Agenda Item No. 10C
October 26, 2010
Page 126 of 156
CONTINUING DISCLOSURE
The County has covenanted for the benefit of the Series 2010B Bondholders to provide certain
financial information and operating data relating to the County and the Series 2010B Bonds in each year,
and to provide notices of the occurrence of certain enumerated material events. The County has agreed
to file annual financial information and operating data and the audited financial statements with each
entity authorized and approved by the Securities and Exchange Commission (the "SEC ") to act as a
repository (each a "Repository") for purposes of complying with Rule 15c2 -12 adopted by the SEC under
the Securities Exchange Act of 1934 (the "Rule "). Effective July 1, 2009, the sole Repository is the
Municipal Securities Rulemaking Board. The County has agreed to file notices of certain enumerated
material events, when and if they occur, with the Repository.
The specific nature of the financial information, operating data, and of the type of events which
trigger a disclosure obligation, and other details of the undertaking are described in "APPENDIX E -
Form of Continuing Disclosure Certificate" attached hereto. The Continuing Disclosure Certificate shall
be executed by the County prior to the issuance of the Series 2010B Bonds. These covenants have been
made in order to assist the Underwriter in complying with the continuing disclosure requirements of the
Rule.
With respect to the Series 2010B Bonds, no party other than the County is obligated to provide,
nor is expected to provide, any continuing disclosure information with respect to the Rule. In the past
five years, the County has never failed to comply with any prior agreements to provide continuing —°
disclosure information pursuant to the Rule.
UNDERWRITING
The Series 2010B Bonds are being purchased by (the
"Underwriter ") at an aggregate purchase price of $ (which includes a net original issue
discount /premium of $ and an Underwriter's discount of $ ). The
Underwriter's obligations are subject to certain conditions precedent, and it will be obligated to purchase
all of the Series 2010B Bonds if any Series 2010B Bonds are purchased. The Series 2010B Bonds may be
offered and sold to certain dealers (including dealers depositing such Series 2010B Bonds into investment
trusts) at prices lower than such public offering prices, and such public offering prices may be changed,
from time to time, by the Underwriter.
CONTINGENT FEES
The County has retained Bond Counsel, Disclosure Counsel and the Financial Advisor with
respect to the authorization, sale, execution and delivery of the Series 2010B Bonds. Payment of the fees
of such professionals and an underwriting discount to the Underwriter are each contingent upon the
issuance of the Series 2010B Bonds.
f 25694/002/00469358.DOCv4} 45
Agenda Item No. 10C
October 26, 2010
Page 127 of 156
ACCURACY AND COMPLETENESS OF OFFICIAL STATEMENT
The references, excerpts, and summaries of all documents, statutes, and information concerning
the County and certain reports and statistical data referred to herein do not purport to be complete,
comprehensive and definitive and each such summary and reference is qualified in its entirety by
reference to each such document for full and complete statements of all matters of fact relating to the
Series 2010B Bonds, the security for the payment of the Series 2010B Bonds and the rights and obligations
of the owners thereof and to each such statute, report or instrument. Copies of such documents may be
obtained from either the office of the Clerk of the Board of County Commissioners, Collier County
Government Complex, 3301 East Tamiami Trail, Building F, Naples, Florida 34112, telephone:
(239) 252 -2745 or the County's Financial Advisor, Public Financial Management, Inc., 2121 Ponce De Leon
Boulevard, Suite 510, Coral Gables, Florida 33134, telephone (305) 448 -6992.
The information contained in this Official Statement has been compiled from official and other
sources deemed to be reliable, and is believed to be correct as of the date of the Official Statement, but is
not guaranteed as to accuracy or completeness by, and is not to be construed as a representation by, the
Underwriter. The Underwriter listed on the cover page hereof has reviewed the information in this
Official Statement in accordance with and as part of its responsibility to investors under the federal
securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not
guarantee the accuracy or completeness of such information. The information and expressions of opinion
stated herein are subject to change, and neither the delivery of this Official Statement nor any sale made
hereunder shall create, under any circumstances, any implication that there has been no change in the
matters described herein since the date hereof.
Any statements made in this Official Statement involving matters of opinion or of estimates,
whether or not so expressly stated are set forth as such and not as representations of fact, and no
representation is made that any of the estimates will be realized. Neither this Official Statement nor any
statement that may have been made verbally or in writing is to be construed as a contract with the
owners of the Series 2010B Bonds.
The appendices attached hereto are integral parts of this Official Statement and must be read in
their entirety together with all foregoing statements.
[Remainder of page intentionally left blank]
{25694/002/00469358.DOCv4} 46
Agenda Item No. 10C
October 26, 2010
Page 128 of 156
AUTHORIZATION OF OFFICIAL STATEMENT
The execution and delivery of this Official Statement has been duly authorized and approved by
the County. At the time of delivery of the Series 2010B Bonds, officials 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 (other than information herein related to DTC, the book -entry only system of
registration and the information contained under the caption "TAX EXEMPTION' as to which no opinion
shall be expressed), as of its date and as of the date of delivery of the Series 2010B 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 light of the circumstances under which they were made, not
misleading.
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
By:
Chairman, Board of County Commissioners
Collier County, Florida
f25694/002/00469358.DOCv4j 47
Agenda Item No. 10C
October 26, 2010
Page 129 of 156
APPENDIX A
GENERAL INFORMATION REGARDING COLLIER COUNTY, FLORIDA
The following information concerning Collier County, Florida (the "County ") has been supplied
by the County and is included only for purposes of supplying general information regarding the County.
The Series 2010B Bonds are secured by a covenant to budget and appropriate legally available non -ad
valorem revenues as described in the Official Statement.
General Information
The County was established in 1923 by the legislature of the State of Florida (the "State ") from
portions of Lee and Monroe Counties. Its territorial limits, as they presently exist, contain approximately
2,026 square miles. In terms of land area, it is the largest county in the State. The County is located on the
southwest coast of the Florida peninsula directly west of the Miami -Fort Lauderdale area. In 2009, the
County had an estimated population of 333,032. Principal industries within the County include
wholesale and retail trade, tourism, medical services, agriculture, forestry, fishing, cattle ranching and
construction.
Board of County Commissioners
The Board of County Commissioners (the 'Board ") is the principal legislative and governing
body of the County. The Board consists of five County Commissioners; one from each of the five districts
elected for terms of four years. All of the County Commissioners are residents of the County. The
current members of the Board and their expiration of terms of office are:
Commissioner
Office
Term Expires
Fred W. Coyle
Chairman
November, 2010
Frank Halas(')
Vice Chair
November, 2010
Jim Coletta
Commissioner
November, 2012
Tom Henning
Commissioner
November, 2012
Donna Fiala
Commissioner
November, 2012
County Manager
The chief administrative official of the County is the County Manager. This official is directly
responsible to the Board for administration and operation of four administrative divisions under the
Board and for execution of all Board policies. The County Manager directs the administrative divisions
for Community Development and Environmental Services, Public Services, Public Utilities, and
Administrative Services and Transportation Services. The County Manager is also responsible to the
Board for the preparation of budgets and for the control of expenditures of departments under his
supervision throughout the budget year.
M Frank Halas will not be seeking re- election, therefore on December 14, 2010, a new Vice Chair
will be appointed, and a new Commissioner will also be elected to the Board.
125694/002/00469358.DOCv41
A -1
Agenda Item No. 10C
October 26, 2010
Page 130 of 156
Budget Process
The County Manager's Director of Corporate Finance (the "Director ") initiates the budget
planning process in January with budget policy discussions among key members of the fiscal and
administrative leadership team. These discussions culminate in the presentation and adoption of budget
policy and guidance by the Board in February. County division heads and elected officers submit their
proposed expenditures beginning in April for compilation by the Director no later than July 1 of each
year and each submission is matched against available revenues. A balanced, proposed budget is
presented to the Board for review within 15 days of receipt of an assessed value certification from the
County's Property Appraiser which is due by July 1. A tentative budget is thereupon adopted within 15
days.
Subsequent to public hearings, a final budget is adopted. The final budget for the fiscal year
ended September 30, 2010 was adopted by the Board on September 24, 2009. Final millage rates are
adopted, usually by late September, and the County's Tax Collector prepares tax bills for mailing on or
after November 1. Upon valid adoption, all expenditures in the budget constitute appropriations, and
amendments to the budget can be made only in accordance with the provisions of Chapter 129, Florida
Statutes, and such chapter provides that expenditures in excess of total fund budgets are unlawful.
Annual Audit
Florida law requires that an annual post audit of each county's accounts and records be
completed within six months of the end of each fiscal year by a firm of independent certified public
accountants retained and paid for by the County. The County retained the firm of Ernst & Young LLP to
undertake the audit of its financial statements for the fiscal year ended September 30, 2009, which are
included as "APPENDIX C - Audited Financial Statements of Collier County for Fiscal Year Ended
September 30, 2009" attached to this Official Statement.
[Remainder of page intentionally left blank]
{25694/002/00469358.DOCv4}
A -2
Agenda Item No. 10C
October 26, 2010
Page 131 of 156
Population
The County has experienced rapid population growth in recent decades. The following table
presents historical and projected population growth for the County, the State, and the United States for
the period of 1960 to 2020:
POPULATION TRENDS
Population
Percentage
Increase
13.4%
11.4
10.6
9.7
12.5
8.7
*Estimates on County and State population use medium estimates of population growth.
Source: University of Florida, Bureau of Economic and Business Research, Population Program,
unpublished data, Florida Statistical Abstract 2009. Census data from U.S. Bureau of Census.
125694/002/00469358.DOCv4)
[Remainder of page intentionally left blank]
A -3
Population
Population
United
County
Percentage
State
Percentage
States
Population
Increase
Population
Increase
Population
1960
15,753
- --
4,951,560
- --
179,323,175
1970
38,040
141.5%
6,791,418
37.1%
203,302,031
1980
85,971
126.0
9,746,961
43.5
226,504,825
1990
152,099
76.9
12,938,071
32.7
250,410,000
2000
251,377
65.3
15,982,378
23.5
274,634,000
2010*
331,800
24.2
18,881,400
18.1
308,936,000
2020*
400,700
20.8
21,417,500
13.4
335,805,000
Population
Percentage
Increase
13.4%
11.4
10.6
9.7
12.5
8.7
*Estimates on County and State population use medium estimates of population growth.
Source: University of Florida, Bureau of Economic and Business Research, Population Program,
unpublished data, Florida Statistical Abstract 2009. Census data from U.S. Bureau of Census.
125694/002/00469358.DOCv4)
[Remainder of page intentionally left blank]
A -3
Agenda Item No. 10C
October 26, 2010
Page 132 of 156
Most of the growth of Collier County is due to migration. As of April 1, 2008, the estimated
median age of the County's population was 45.2 years according to the 2009 Florida Statistical Abstract,
University of Florida. The majority of the population is over the age of 18, with the age category 35 -54
comprising 24.62% of the overall population.
Industry
COLLIER COUNTY EMPLOYMENT
BY MAJOR INDUSTRY
September 30, 2008
Firms Employeeyee Count( )
Accommodation and Food Services
784
15,968
Health Care and Social Assistance
873
14,991
Professional and Business Services
2,569
14,158
Finance and Insurance
660
3,920
Real Estate and Rental Leasing
1,069
3,128
Arts, Entertainment and Recreation
245
6,873
Services - Other
1,112
5,072
Services
7,312
64,110
Food Stores
133
3,639
Auto Dealers and Service Stations
241
2,766
Home Furniture and Furnishings
138
987
Retail Trade - Other
565
3,164
Apparel and Accessory Stores
281
2,458
General Merchandise Stores
44
3,164
Building Hardware and Garden
130
1,822
Retail Trade, Other
1,532
18,000
Federal Government
26
662
State Government
40
845
Local Government
27
11,620
Government
93
13,127
Agriculture, Forestry Fishing and Hunting
100
5,547
Construction
1,967
13,957
Manufacturing
286
2,919
Transportation and Warehousing
239
23,139
Wholesale Trade
499
2,999
Mining
9
13
Other
3,100
48,574
Total
12.037
143,811
(1) Average number of people employed in 2009.
Source: Collier County Finance Department; Florida Department of Labor & Employment Security;
Bureau of Labor Market Information ES -202 Report.
{25694/002/00469358.DOCv41
A -4
Agenda Item No. 10C
October 26, 2010
Page 133 of 156
COLLIER COUNTY EMPLOYMENT
(2000 -2009)
State of
County Florida
Labor Unemployment Unemployment
Year Force Employment Unemployment Rate Rate
2001
112,616
108,201
4,415
3.9%
4.8%
2002
117,278
112,118
5,160
4.4
5.5
2003
131,993
125,822
6,171
4.7
5.3
2004
138,036
132,610
5,426
3.9
4.7
2005
145,347
140,324
5,023
3.5
3.8
2006
152,162
147,356
4,806
3.2
3.4
2007
153,243
146,720
6,523
4.3
4.1
2008
151,806
141,553
10,253
6.8
6.2
2009
144,157
128,057
16,100
11.2
10.5
20100)
146,091
128,066
18,025
12.3
12.0
(1)
Estimates as of March, 2010, Florida Research and Economic Database.
Source:
State of Florida,
Agency for Workforce Innovation,
Bureau of Labor
Market Information;
University of Florida, Bureau of Economic and Business Research, Florida Statistical Abstract
2009.
BUILDING PERMIT ACTIVITIES IN COLLIER COUNTY
(2000 -2009)
Single Multi- Residential
Year Family Units Family Units Valuation(')
2000
4,065
3,905
$1,188,310
2001
3,878
4,280
1,093,852
2002
4,173
3,109
1,113,547
2003
3,376
2,444
977,445
2004
4,202
2,719
1,487,546
2005
4,052
2,570
1,655,669
2006
2,829
1,959
1,228,774
2007
1,069
1,026
649,718
2008
652
299
387,286
2009(2)
77
50
N/A
(1) Valuation in thousands of dollars.
(2) Estimates as of February, 2009, Florida Research and Economic Database.
Source: University of Florida, Bureau of Economic and Business Research, Florida Statistical Abstract
2009.
{25694/002/00469358.DOCv4)
A -5
Agenda Item No. 10C
October 26, 2010
Page 134 of 156
Agriculture
Agriculture is a dominant factor in the economy of the County. Rainfall averages about 48 inches
annually with most of the precipitation occurring during the late spring and summer. The high yearly
rainfall and year -round mild temperature enable agriculture to be a productive sector of the County
economy. The agricultural industry represents five percent of the workforce. Farming activities are
located approximately 40 miles inland primarily centered around the community of Immokalee. Major
crops include tomatoes, peppers, cucumbers, melons and citrus. Beef cattle are also a significant farming
commodity.
Tourism
Tourism is a major factor in the economy of the County. Visitors to the County enjoy its Gulf of
Mexico beaches, golf, tennis and other attractions. Everglades National Park, the United States only
subtropical National Park, located near Naples, comprises a substantial portion of the County. Collier -
Seminole Park and Corkscrew Swamp are also located nearby. Salt water fishing in the Gulf of Mexico,
as well as fresh water fishing, makes the many lakes and waterways popular vacation spots. The County
is regarded as one of the largest shelling areas in the United States.
Transportation
The County is served by U.S. Highway 41 (otherwise known as the Tamiami Trail) and Interstate
75, which links Naples to the east coast of Florida and intersects U.S. Highway 27, providing access to the
Florida Turnpike. Interstate 75 also provides access to the County from the North. Greyhound Bus Lines
connects the County to all points within the State.
Air service is available at the Naples Airport owned by the City of Naples and covers an area of
approximately 650 acres. The airport has two lighted 5,000 feet hard surfaced runways, each 150 feet
wide. Commuter airlines offer regularly scheduled flights to Miami, Tampa and Atlanta. Air service at
the Southwest International Airport near Fort Myers, 35 miles north of Naples, reaches many major cities.
In addition, the County owns and operates three public airports: the Marco Island Executive Airport and
the Immokalee and Everglades City Airparks.
Educational System -
The County school system serves approximately 43,214 students in 50 schools, including two
charter schools. The public schools provide a varied adult education program and a special program for
pre - school children. There are several private and parochial schools in the County offering classes from
kindergarten through the twelfth grade. Edison Community College's main campus in Fort Myers, with
a branch campus in Naples, offers technical training as well as college preparation for students. In
August of 2003, Ave Maria University, a private Catholic University located within the County, began
admitting students. The University offers bachelor's degrees in biology, classics, economics, history,
literature, mathematics, music, philosophy, politics and theology. Pre - professional programs are offered
in pre -law, pre - medicine and pre - business. Although not located within the County, Florida Gulf Coast
College, the tenth college in the State University System, is operating in Lee County, immediately north
of the County.
(25694/002/00469358.DOCv4)
A -6
Agenda Item No. 10C
October 26, 2010
Page 135 of 156
Medical Facilities
Naples Community Hospital, a non - profit, private corporation provides health services to the
residents of the County. It opened as a 50 -bed facility in 1956, financed exclusively by contributions from
members of the community. Since 1956, Naples Community Hospital has grown to encompass
approximately 422,000 square feet and include two six -story towers that house Naples Community
Hospital's 420 licensed beds and patient care ancillary services and a two -story support services wing
located between the two towers. Hospital services are also provided in the Carpenter -Briggs Radiation
Therapy Center located across the street from Naples Community Hospital, at the Golden Gate Urgent
Care Center located in leased space approximately seven miles from Naples Community Hospital, and in
several other outpatient facilities that provide urgent care, rehabilitation, wellness and infusion services.
In addition, Physician's Regional operates two hospitals within the County with a total of 283 beds.
The Collier County Health Department operates in every community in the County under the
direction of a licensed physician and with a staff of trained specialists, including public health workers,
nurses, sanitarians and clinical psychologists.
COLLIER COUNTY
FINANCIAL AND ECONOMIC DATA
(Fiscal Years 2000 -2009)
(Unaudited)
N/A = Data not currently available
Source: Federal Deposit Insurance Corporation, Division of Supervision; Florida Research and Economic
Database; University of Florida, Bureau of Economic and Business Research, Florida Statistical
Abstract 2009.
{25694/002/00469358.DOCv4}
A -7
Per
Bank
Fiscal
Percent
Capita
Deposits
Year
Population
Increase
Income
0( 00's)
2000
229,821
4.6%
39,403
4,659
2001
251,377
9.3
33,319
5,154
2002
264,475
5.2
42,118
5,844
2003
284,918
7.7
43,216
6,789
2004
306,816
7.7
50,380
8,133
2005
317,788
3.6
53,867
9,473
2006
326,658
2.8
59,895
10,665
2007
333,858
2.2
63,276
10,957
2008
332,854
(0.3)
62,559
11,026
2009
333,032
0.1
N/A
N/A
N/A = Data not currently available
Source: Federal Deposit Insurance Corporation, Division of Supervision; Florida Research and Economic
Database; University of Florida, Bureau of Economic and Business Research, Florida Statistical
Abstract 2009.
{25694/002/00469358.DOCv4}
A -7
C)
N
O
_..
ZNcco
_
o N
cu
.Q
Z
v c M
o
C
� d
v v
°o
°o
°o
°o
°o
°o
o°
oo
> u
u
y
ue
u
s.
O
n
M
N
W
M
M
0 X
Q)
M
rN
U x fC
>
L�
M
dd�'
4
t[;
m�
M
O
f'
W
ii
O�
000
bA
Pr
Q
cu
a
W
-� x y
-
ao
o
O,
�c
o
bA
$ 4
0:
*.
0 c0 �I
F+ R!
E
000
O
d
o0
000
n
tYi
M
N
M
M
L�
M
v �r
7J
O
N
Q
r
ti
ff
r
C
O
%
cd
�
M
Q)
Qi
O
O
N
W
a
u
�" w
ci
W
c-flc v
�
to
O
tri
0` 00
N
ONO
N
d
N
FU
Q.
U-j
e'
'CID,
w
Q
^ z L �
co
a
L
N
00
> E-'
°c
m
01
O
Z
O
O O
O di
-
v
;-4
w
w
H U
V Nr
y
N
t�
rn
M
o
>"
O
Q
A
�+
C �"
ui CZ
U �
OHO
�
d
�
O\
N
00
N
O
O
O�
N
cf
N
00
[
C�
00
s0.
�
u
Ln
'
Q
m
►.]
W 04
�
�
U
.-] E" x
m
ON
lf)
rn
00
0
�n
N
�
¢ O
—
- W
fA
07
00
O
y
p w
m
.y
O
0
z�
H
v to 00
�"
o a
ca
a..
>
0, ",
m
,� U
Q
v
N
r
ti
ey
r
ti
ti
��+
N
N
N
m
O
N
z
z
m O
v � �.
Ef3
01
x
..,.
u
0)
U>, Q �,
CZ (u
v
�a
�n
o
m
N
oo
Q
>
N
dM'
m
N
N�
N
O
M
vOi
n
O
N M
N
m
M
r-4
N
v
6+
���'
(U m
O
cu
O
ON
N
O
N
m
m
O
-+
t1)
h
M N
N
N
O
O
d'
M
,�
'� R,
4J D1
cp�
O
L
N
O
M
ON
D\
D;
114
v U
m
cu �7
O
cC
'CS
L�
m
G
00
L')
�
U
+'
U)
C,4
'�M
O�
It
LO
LO
A
�D
N
W
00
07
\O
00
Ln
h
CZ
>
O
o o
O
ra
o
?�
U
A
`0
om
O
a v
v
00
Q)
-�
m a) n
N
m
�r
�
\0
N
00
ON
s�,
° cu
4 O
�
g
y
O
O
O
f� E-y 'J,
F-+ U
LA
rn
,. i� r4i
�" W +,
N
N
N
N
N
g
vyi
C!1
10
Q
Cn
N
Agenda Item No. 10C
October 26, 2010
Page 137 of 156
The following table contains the property tax rates for the Fiscal Years 2002 through 2009.
COLLIER COUNTY, FLORIDA
PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTSM
(Fiscal Years 2002 -2009)
(Unaudited)
(l) Basis for property tax rates is 1 mill per $1,000 of assessed value. Property is assessed as of January 1 and taxes
based on those assessments are levied according to the tax rate in effect that tax year and become due on
November 1. Therefore, assessments and tax levies applicable to a certain tax year are collected in the fiscal year
ending during the following calendar year.
Source: Collier County Comprehensive Annual Financial Report for Fiscal Year ending September 30, 2009.
{25694/002/00469358.DOCv41
A -9
Collier County
Other
Special
Debt
County
Fiscal
General
Revenue
Service
School
Independent
Year
Fund
Funds
Funds
Total
District
Districts
Total
2002
3.8772
0.6670
0.0256
4.5698
7.1370
1.3813
13.0881
2003
3.8772
0.6767
0.0215
4.5754
6.9110
1.3554
12.8418
2004
3.8772
0.9226
0.0000
4.7998
6.5240
1.3562
12.6800
2005
3.8772
0.9177
0.0000
4.7949
6.2200
1.3562
12.3711
2006
3.8772
0.9161
0.1500
4.9433
5.9730
1.3423
12.2586
2007
3.5790
0.8470
0.2226
4.6486
5.5250
1.3403
11.5139
2008
3.1469
0.7362
0.2233
4.1064
5.3510
1.2792
10.7366
2009
3.1469
0.7528
0.2249
4.1246
4.9090
1.2784
10.3120
(l) Basis for property tax rates is 1 mill per $1,000 of assessed value. Property is assessed as of January 1 and taxes
based on those assessments are levied according to the tax rate in effect that tax year and become due on
November 1. Therefore, assessments and tax levies applicable to a certain tax year are collected in the fiscal year
ending during the following calendar year.
Source: Collier County Comprehensive Annual Financial Report for Fiscal Year ending September 30, 2009.
{25694/002/00469358.DOCv41
A -9
Agenda Item No. 10C
October 26, 2010
Page 138 of 156
APPENDIX B
FORM OF THE RESOLUTION
f25694/002/00469358.DOCv4}
Agenda Item No. 10C
October 26, 2010
Page 139 of 156
APPENDIX C
AUDITED FINANCIAL STATEMENTS
OF COLLIER COUNTY FOR FISCAL YEAR ENDED SEPTEMBER 30, 2009
The statistical section referred to in the
opinion letter has been intentionally omitted
125694/002/00469358.DOCv4}
APPENDIX D
FORM OF BOND COUNSEL OPINION
{25694/002/00469358.DOCv4}
Agenda Item No. 10C
October 26, 2010
Page 140 of 156
APPENDIX E
FORM OF CONTINUING DISCLOSURE CERTIFICATE
{25694/002/00469358.DOCv4)
Agenda Item No. 10C
October 26, 2010
Page 141 of 156
Agenda Item No. 10C
October 26, 2010
Page 142 of 156
ESCROW DEPOSIT AGREEMENT
ESCROW DEPOSIT AGREEMENT, dated as of November , 2010, by and
between the COLLIER COUNTY, FLORIDA, a political subdivision of the State of
Florida (the "County "), and U.S. Bank National Association (the "Escrow Agent "), a
national banking association organized and existing under the laws of the United States
of America, having its designated corporate trust office in Miami, Florida, as escrow
agent hereunder.
WHEREAS, the County has heretofore issued its Collier County, Florida Capital
Improvement Revenue Bonds, Series 2002 (the "Series 2002 Bonds ") pursuant to
Resolution No. 85 -107 adopted on April 30, 1985, as amended and supplemented
(collectively, the "Resolution "); and
WHEREAS, the County has determined to exercise its option under the
Resolution to advance refund all of the Series 2002 Bonds, as identified on Schedule A
attached hereto (the "Refunded Bonds "); and
WHEREAS, the County has determined to issue its $ aggregate
principal amount of Collier County, Florida Capital Improvement Refunding Revenue
Bonds, Series 2010B (the "Series 2010B Bonds ") pursuant to Resolution No.
adopted by the County on October 26, 2010, a portion of the proceeds of which Series
2010B Bonds will be used to purchase certain United States Treasury obligations in order
to provide payment for the Refunded Bonds and to discharge and satisfy the pledges,
liens and other obligations of the County under the Resolution in regard to such Refunded
Bonds; and
WHEREAS, the issuance of the Series 2010B Bonds, the purchase by the Escrow
Agent of the hereinafter defined Escrow Securities, the deposit of such Escrow Securities
into an escrow deposit trust fund to be held by the Escrow Agent and the discharge and
satisfaction of the pledges, liens and other obligations of the County under the Resolution
in regard to the Refunded Bonds shall occur as a simultaneous transaction; and
WHEREAS, this Agreement is intended to effectuate such simultaneous
transaction;
NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants hereinafter set forth, the parties hereto agree as follows:
SECTION 1. PREAMBLES. The recitals stated above are true and correct
and incorporated herein.
Agenda Item No. 10C
October 26, 2010
Page 143 of 156
SECTION 2. RECEIPT OF RESOLUTION AND VERIFICATION
REPORT. Receipt of a true and correct copy of the above - mentioned Resolution and this
Agreement is hereby acknowledged by the Escrow Agent. The applicable and necessary
provisions of the Resolution, including but not limited to Section 12 and Section 27
thereto, are incorporated herein by reference. The Escrow Agent also acknowledges
receipt of the verification report of [Causey Demgen & Moore Inc.], dated November _,
2010 (the "Verification Report"). Reference herein to or citation herein of any provisions
of the Resolution or the Verification Report shall be deemed to incorporate the same as a
part hereof in the same manner and with the same effect as if the same were fully set
forth herein.
SECTION 3. DISCHARGE OF PLEDGE OF HOLDERS OF
REFUNDED BONDS. The County by this writing exercises its option to cause the
pledge of the Pledged Revenues (as defined in the Resolution) and all covenants,
agreements and other obligations of the County to the holders of the Refunded Bonds to
cease, terminate and become void and be discharged and satisfied.
SECTION 4. ESTABLISHMENT OF ESCROW FUND. There is
hereby created and established with the Escrow Agent a special, segregated and
irrevocable escrow fund designated the "Collier County, Florida Capital Improvement
Revenue Bonds, Series 2002 Escrow Deposit Trust Fund" (the "Escrow Fund "). The
Escrow Fund shall be held in the custody of the Escrow Agent as a trust fund for the
benefit of the holders of the Refunded Bonds separate and apart from other funds and
accounts of the County and the Escrow Agent. The Escrow Agent hereby accepts the
Escrow Fund and acknowledges the receipt of and deposit to the credit of the Escrow
Fund the sum of $ received from the County from proceeds of the Series
2010B Bonds ('Bond Proceeds ") and $ from other legally available
moneys of the County (the "County Moneys ").
SECTION 5. DEPOSIT OF MONEYS AND SECURITIES IN
ESCROW FUND. The County hereby directs and the Escrow Agent represents and
acknowledges that, concurrently with the deposit of the Bond Proceeds and County
Moneys under Section 4 above, it has used all of the Bond Proceeds and $ of
the County Moneys to purchase on behalf of and for the account of the County certain
United States Treasury obligations - State and Local Government Series (collectively,
together with any other securities which may be on deposit, from time to time, in the
Escrow Fund, the "Escrow Securities "), which are described in Schedule B hereto, and
the Escrow Agent will deposit such Escrow Securities and $ in cash (the "Cash
Deposit ") in the Escrow Fund. All Escrow Securities shall be noncallable, direct
obligations of the United States of America.
In the event any of the Escrow Securities described in Schedule B hereto are not
available for delivery on November _, 2010, the Escrow Agent may, at the written
direction of the County and with the approval of Bond Counsel, substitute other United
2
Agenda Item No. 10C
October 26, 2010
Page 144 of 156
States Treasury obligations and shall credit such other obligations to the Escrow Fund
and hold such obligations until the aforementioned Escrow Securities have been
delivered. Bond Counsel shall, as a condition precedent to giving its approval, require
the County to provide it with a revised Verification Report in regard to the adequacy of
the Escrow Securities, taking into account the substituted obligations to pay the Refunded
Bonds in accordance with the terms hereof. The Escrow Agent shall in no manner be
responsible or liable for failure or delay of Bond Counsel or the County to promptly
approve the substitutions of other United States Treasury obligations for the Escrow
Fund.
SECTION 6. SUFFICIENCY OF ESCROW SECURITIES AND THE
CASH DEPOSIT. In reliance upon the Verification Report, the County represents that
the Cash Deposit and the interest on and the principal amounts successively maturing on
the Escrow Securities in accordance with their terms (without consideration of any
reinvestment of such maturing principal and interest) are sufficient such that moneys will
be available to the Escrow Agent in amounts sufficient and at the times required to pay
the amounts of principal of, premium, if any, and interest due and to become due on the
Refunded Bonds as described in Schedule C attached hereto. If the Escrow Securities
and the Cash Deposit shall be insufficient to make such payments, the County shall
timely deposit to the Escrow Fund, solely from legally available funds of the County,
such additional amounts as may be required to pay the Refunded Bonds as described in
Schedule C hereto. Notice of any insufficiency shall be given by the Escrow Agent to the
County as promptly as possible, but the Escrow Agent shall in no manner be responsible
for the County's failure to make such deposits.
SECTION 7. ESCROW SECURITIES AND THE CASH DEPOSIT IN
TRUST FOR HOLDERS OF REFUNDED BONDS. The deposit of the Escrow
Securities and the Cash Deposit in the Escrow Fund shall constitute an irrevocable
deposit of Defeasance Securities (as defined in the Resolution) and cash in trust solely for
the payment of the principal of, premium, if any, and interest on the Refunded Bonds at
such times and in such amounts as set forth in Schedule C hereto, and the principal of and
interest earnings on such Escrow Securities and the Cash Deposit shall be used solely for
such purpose.
SECTION 8. ESCROW AGENT TO PAY REFUNDED BONDS
FROM ESCROW FUND. The County hereby directs, and the Escrow Agent hereby
agrees, that it will take all actions required to be taken by it under the provisions of the
Resolution referenced in this Agreement, including the timely transfer of money to the
Paying Agent for the Refunded Bonds (The Bank of New York Mellon Trust Company,
N.A.) as provided in the Resolution, in order to effectuate this Agreement and to pay the
Refunded Bonds in the amounts and at the times provided in Schedule C hereto. The
Escrow Securities and the Cash Deposit shall be used to pay debt service on the
Refunded Bonds as they mature or are redeemed prior to maturity. The Refunded Bonds
3
Agenda Item No. 10C
October 26, 2010
Page 145 of 156
maturing on October 1, 2012 and thereafter shall be redeemed prior to their respective
maturities on October 1, 2011 (the "Redemption Date ") at a redemption price equal to
101% of the principal amount of each Refunded Bond, plus interest accrued to the
Redemption Date. The Refunded Bonds maturing on October 1, 2011 shall be paid at
maturity. If any payment date shall be a day on which either the Paying Agent for the
Refunded Bonds or the Escrow Agent is not open for the acceptance or delivery of funds,
then the Escrow Agent may make payment on the next business day. The liability of the
Escrow Agent for the payment of the principal of, premium, if any, and interest on the
Refunded Bonds pursuant to this Agreement shall be limited to the application of the
Escrow Securities and the Cash Deposit and the interest earnings thereon available for
such purposes in the Escrow Fund.
SECTION 9. REINVESTMENT OF MONEYS AND SECURITIES IN
ESCROW FUND. Moneys deposited in the Escrow Fund shall be invested, other than
the Cash Deposit, only in the Escrow Securities listed in Schedule B hereto and, except as
provided in Section 5 hereof and this Section 9, neither the County nor the Escrow Agent
shall otherwise invest or reinvest any moneys in the Escrow Fund.
Except as provided in Section 5 hereof and in this Section 9, the Escrow Agent
may not sell or otherwise dispose of any or all of the Escrow Securities or the Cash
Deposit in the Escrow Fund and reinvest the proceeds thereof in other securities nor may
it substitute securities for any of the Escrow Securities, except upon written direction of
the County and where, prior to any such reinvestment or substitution, the Escrow Agent
has received from the County the following:
(a) a written verification report by a firm of independent certified public
accountants, of recognized standing, appointed by the County and acceptable to
the Escrow Agent, to the effect that after such reinvestment or substitution the
principal amount of Escrow Securities, together with the interest therein and any
uninvested cash, will be sufficient to pay the Refunded Bonds as described in
Schedule C hereto; and
(b) a written opinion of nationally recognized Bond Counsel to the
effect that (i) such investment will not cause the Series 2010B Bonds or the
Refunded Bonds to be "arbitrage bonds" within the meaning of Section 148 of the
Internal Revenue Code, as amended, and the regulations promulgated thereunder
or otherwise cause the interest on the Refunded Bonds or the Series 2010B Bonds
to be included as gross income for purposes of federal income taxation, and (ii)
such investment does not violate any provision of Florida law or of the Resolution.
The above - described verification report need not be provided in the event the County
purchases Escrow Securities with the proceeds of maturing Escrow Securities and such
purchased Escrow Securities mature on or before the next interest payment date for the
12
Agenda Item No. 10C
October 26, 2010
Page 146 of 156
Refunded Bonds and have a face amount which is at least equal to the cash amount
invested in such Escrow Securities.
In the event the above - referenced verification concludes that there are surplus
moneys in the Escrow Fund, such surplus moneys shall be released to the County upon its
written direction. The Escrow Fund shall continue in effect until the date upon which the
Escrow Agent makes the final payment to the Paying Agent for the Refunded Bonds in
an amount sufficient to pay the Refunded Bonds as described in Schedule C hereto,
whereupon the Escrow Agent shall sell or redeem any Escrow Securities remaining in the
Escrow Fund, and shall remit to the County the proceeds thereof, together with all other
money, if any, then remaining in the Escrow Fund.
SECTION 10. REDEMPTION OF REFUNDED BONDS. The County
hereby irrevocably instructs the Escrow Agent to cause the Registrar for the Refunded
Bonds (The Bank of New York Mellon Trust Company, N.A.) to give, on behalf of the
County, at the appropriate times the notice or notices, if any, required by the Resolution
in connection with the redemption of the Refunded Bonds. The Refunded Bonds
maturing on and after October 1, 2012 shall be redeemed on October 1, 2011 at a
redemption price equal to 101% of the principal amount thereof, plus accrued interest.
SECTION 11. DEFEASANCE NOTICE TO HOLDERS OF
REFUNDED BONDS. Concurrently with the deposit of the Escrow Securities set forth
in Section 5 hereof, the Refunded Bonds shall be deemed to have been paid within the
meaning and with the effect expressed in Article XII of the Resolution. Within 60 days
of the deposit of moneys into the Escrow Fund, the Escrow Agent, on behalf of the
County, shall cause the Paying Agent for the Refunded Bonds (The Bank of New York
Mellon Trust Company, N.A.) to mail to the Holders of the Refunded Bonds the
appropriate notice in the form provided in Schedule D attached hereto.
SECTION 12. ESCROW FUND IRREVOCABLE. The Escrow Fund
hereby created shall be irrevocable and the holders of the Refunded Bonds shall have an
express lien on all Escrow Securities and the Cash Deposit deposited in the Escrow Fund
pursuant to the terms hereof and the interest earnings thereon until paid out, used and
applied in accordance with this Agreement and the Resolution. Neither the County nor
the Escrow Agent shall cause nor permit any other lien or interest whatsoever to be
imposed upon the Escrow Fund.
SECTION 13. AMENDMENTS TO AGREEMENT. This Agreement is
made for the benefit of the County and the holders from time to time of the Refunded
Bonds and it shall not be repealed, revoked, altered or amended without the written
consent of all such holders and the written consent of the Escrow Agent; provided,
however, that the County and the Escrow Agent may, without the consent of, or notice to,
such holders, enter into such agreements supplemental to this Agreement as shall not
5
Agenda Item No. 10C
October 26, 2010
Page 147 of 156
adversely affect the rights of such holders and as shall not be inconsistent with the terms
and provisions of this Agreement, for any one or more of the following purposes:
(a) to cure any ambiguity or formal defect or omission in this
Agreement;
(b) to grant, or confer upon, the Escrow Agent for the benefit of the
holders of the Refunded Bonds, any additional rights, remedies, powers or
authority that may lawfully be granted to, or conferred upon, such holders or the
Escrow Agent; and
(c) to subject to this Agreement additional funds, securities or
properties.
The Escrow Agent shall be entitled to rely exclusively upon an unqualified
opinion of nationally recognized Bond Counsel with respect to compliance with this
Section 13, including the extent, if any, to which any change, modification or addition
affects the rights of the holders of the Refunded Bonds, or that any instrument executed
hereunder complies with the conditions and provisions of this Section 13.
SECTION 14. FEES AND EXPENSES OF ESCROW AGENT;
INDEMNIFICATION. In consideration of the services rendered by the Escrow Agent
under this Agreement, the County agrees to and shall pay to the Escrow Agent the fees
and expenses as shall be agreed to in writing by the parties hereto. The Escrow Agent
shall have no lien whatsoever upon any of the Escrow Securities in said Escrow Fund for
the payment of such proper fees and expenses. The County further agrees to indemnify
and save the Escrow Agent harmless, to the extent allowed by law, against any liabilities
which it may incur in the exercise and performance of its powers and duties hereunder,
and which are not due to its negligence or misconduct. Indemnification provided under
this Section 14 shall survive the termination of this Agreement.
Whenever the Escrow Agent shall deem it necessary or desirable that a matter be
proved or established prior to taking, suffering or omitting any action under this
Agreement, such matter may be deemed to be conclusively established by a certificate
signed by an authorized officer of the County. The Escrow Agent may conclusively rely,
as to the correctness of statements, conclusions and opinions therein, upon any certificate,
report, opinion or other document furnished to the Escrow Agent pursuant to any
provision of this Agreement; the Escrow Agent shall be protected and shall not be liable
for acting or proceeding, in good faith, upon such reliance; and the Escrow Agent shall be
under no duty to make any investigation or inquiry as to any statements contained or
matters referred to in any such instrument. The Escrow Agent may consult with counsel,
who may be counsel to the County or independent counsel, with regard to legal questions,
and the opinion of such counsel shall be full and complete authorization and protection in
respect of any action taken or suffered by it hereunder in good faith in accordance
0
Agenda Item No. 10C
October 26, 2010
Page 148 of 156
herewith. Prior to retaining such independent counsel, the Escrow Agent shall notify the
County of its intention.
The Escrow Agent and its successors, agents and servants shall not be held to any
personal liability whatsoever, in tort, contract or otherwise, by reason of the execution
and delivery of this Agreement, the establishment of the Escrow Fund, the acceptance
and disposition of the various moneys and funds described herein, the purchase, retention
or payment, transfer or other application of funds or securities by the Escrow Agent in
accordance with the provisions of this Agreement or any nonnegligent act, omission or
error of the Escrow Agent made in good faith in the conduct of its duties. The Escrow
Agent shall, however, be liable to the County and to holders of the Refunded Bonds to
the extent of their respective damages for negligent or willful acts, omissions or errors of
the Escrow Agent which violate or fail to comply with the terms of this Agreement. The
duties and obligations of the Escrow Agent shall be determined by the express provisions
of this Agreement.
SECTION 15. REPORTING REQUIREMENTS OF ESCROW AGENT.
As soon as practicable after the first day of April and October of each year, commencing
April 1, 2011, so long as the Escrow Fund is maintained under this Agreement, the
Escrow Agent shall forward in writing to the County a statement in detail of the Escrow
Securities held as of April 1 or October 1 of that year, whichever is applicable, and the
income and maturities thereof, and withdrawals of money from the Escrow Fund, since
the last statement furnished pursuant to this Section 15.
SECTION 16. RESIGNATION OR REMOVAL OF ESCROW AGENT.
The Escrow Agent, at the time acting hereunder, may at any time resign and be
discharged from the duties and obligations hereby created by giving not less than 60 days'
written notice to the County and mailing notice thereof, specifying the date when such
resignation will take effect to the holders of all Refunded Bonds then outstanding, but no
such resignation shall take effect unless a successor Escrow Agent shall have been
appointed by the holders of a majority in aggregate principal amount of the Refunded
Bonds then outstanding or by the County as hereinafter provided and such successor
Escrow Agent shall have accepted such appointment, in which event such resignation
shall take effect immediately upon the appointment and acceptance of a successor Escrow
Agent.
The Escrow Agent may be replaced at any time by an instrument or concurrent
instruments in writing, delivered to the Escrow Agent and signed by either the County or
the holders of a majority in aggregate principal amount of the Refunded Bonds then
outstanding. Such instrument shall provide for the appointment of a successor Escrow
Agent, which appointment shall occur simultaneously with the removal of the Escrow
Agent.
7
Agenda Item No. 10C
October 26, 2010
Page 149 of 156
In the event the Escrow Agent hereunder shall resign or be removed, or be
dissolved, or shall be in the course of dissolution or liquidation, or otherwise become
incapable of acting hereunder, or in case the Escrow Agent shall be taken under the
control of any public officer or officers, or of a receiver appointed by a court, a successor
may be appointed by the holders of a majority in aggregate principal amount of the
Refunded Bonds then outstanding by an instrument or concurrent instruments in writing,
signed by such holders, or by their attorneys in fact, duly authorized in writing; provided,
nevertheless, that in any such event, the County shall appoint a temporary Escrow Agent
to fill such vacancy until a successor Escrow Agent shall be appointed by the holders of a
majority in aggregate principal amount of the Refunded Bonds then outstanding in the
manner above provided, and any such temporary Escrow Agent so appointed by the
County shall immediately and without further act be superseded by the Escrow Agent so
appointed by such holders. The County shall mail notice of any such appointment made
by it at the times and in the manner described in the first paragraph of this Section 16.
In the event that no appointment of a successor Escrow Agent or a temporary
successor Escrow Agent shall have been made by such holders or the County pursuant to
the foregoing provisions of this Section 16 within 60 days after written notice of
resignation of the Escrow Agent has been given to the County, the holder of any of the
Refunded Bonds or any retiring Escrow Agent may apply to any court of competent
jurisdiction for the appointment of a successor Escrow Agent, and such court may
thereupon, after such notice, if any, as it shall deem proper, appoint a successor Escrow
Agent.
In the event of replacement or resignation of the Escrow Agent, the Escrow Agent
shall remit to the County the prorated portion of prepaid fees not yet incurred or payable,
less any termination fees and expenses at the time of discharge, and shall have no further
liability hereunder and the County shall indemnify and hold harmless the Escrow Agent,
to the extent allowed by law, from any such liability, including costs or expenses incurred
by the Escrow Agent or its counsel.
No successor Escrow Agent shall be appointed unless such successor Escrow
Agent shall be a corporation with trust powers organized under the banking laws of the
United States or any State, and shall have at the time of appointment capital and surplus
of not less than $30,000,000.
Every successor Escrow Agent appointed hereunder shall execute, acknowledge
and deliver to its predecessor and to the County an instrument in writing accepting such
appointment hereunder and thereupon such successor Escrow Agent, without any further
act, deed or conveyance, shall become fully vested with all the rights, immunities,
powers, trusts, duties and obligations of its predecessor; but such predecessor shall
nevertheless, on the written request of such successor Escrow Agent or the County
execute and deliver an instrument transferring to such successor Escrow Agent all the
estates, properties, rights, powers and trust of such predecessor hereunder; and every
Agenda Item No. 10C
October 26, 2010
Page 150 of 156
predecessor Escrow Agent shall deliver all securities and moneys held by it to its
successor; provided, however, that before any such delivery is required to be made, all
fees, advances and expenses of the retiring or removed Escrow Agent shall be paid in
full. Should any transfer, assignment or instrument in writing from the County be
required by any successor Escrow Agent for more fully and certainly vesting in such
successor Escrow Agent the estates, rights, powers and duties hereby vested or intended
to be vested in the predecessor Escrow Agent, any such transfer, assignment and
instruments in writing shall, on request, be executed, acknowledged and delivered by the
County.
Any corporation into which the Escrow Agent, or any successor to it in the trusts
created by this Agreement, may be merged or converted or with which it or any successor
to it may be consolidated, or any corporation resulting from any merger, conversion,
consolidation or tax -free reorganization to which the Escrow Agent or any successor to it
shall be a party shall be the successor Escrow Agent under this Agreement without the
execution or filing of any paper or any other act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding.
SECTION 17. TERMINATION OF AGREEMENT. This Agreement
shall terminate when all transfers and payments required to be made by the Escrow Agent
under the provisions hereof shall have been made. Upon such termination, all moneys
remaining in the Escrow Fund shall be released to the County.
SECTION 18. GOVERNING LAW. This Agreement shall be governed by
the applicable laws of the State of Florida.
SECTION 19. SEVERABILITY. If any one or more of the covenants or
agreements provided in this Agreement on the part of the County or the Escrow Agent to
be performed should be determined by a court of competent jurisdiction to be contrary to
law, such covenant or agreement shall be deemed and construed to be severable from the
remaining covenants and agreements herein contained and shall in no way affect the
validity of the remaining provisions of this Agreement.
SECTION 20. COUNTERPARTS. This Agreement may be executed in
several counterparts, all or any of which shall be regarded for all purposes as one original
and shall constitute and be but one and the same instrument.
6
Agenda Item No. 10C
October 26, 2010
Page 151 of 156
SECTION 21. NOTICES. Any notice, authorization, request or demand
required or permitted to be given in accordance with the terms of this Agreement shall be
in writing and sent by registered or certified mail addressed to:
U.S. Bank National Association
200 South Biscayne Boulevard, Suite 1870
Miami, Florida 33131
Attention: Corporate Trust Department
Collier County, Florida
Collier County Government Complex
3301 East Tamiami Trail, Building F
Naples, FL 34112
Attention: County Manager
IN WITNESS WHEREOF, the parties hereto have each caused this Escrow
Deposit Agreement to be executed by their duly authorized officers and appointed
officials and their seals to be hereunder affixed and attested as of the date first written
herein.
(SEAL)
ATTEST:
Deputy Clerk
COLLIER COUNTY, FLORIDA
Chairman, Board of County Commissioners
Approved as to Form and Legal Sufficiency:
U.S. BANK NATIONAL ASSOCIATION, as
Escrow Agent
By:
Assistant Vice President
10
Agenda Item No. 10C
October 26, 2010
SCHEPOtWVAf 156
DESCRIPTION OF THE REFUNDED BONDS
Agenda Item No. 10C
October 26, 2010
SCHLDVEPBf 156
ESCROW SECURITIES
Agenda Item No. 10C
October 26, 2010
SCHEftI,fPltPf 156
DISBURSEMENT REQUIREMENTS FOR REFUNDED BONDS
Agenda Item No. 10C
October 26, 2010
SCHEDULVtPf 156
FORM OF NOTICE OF DEFEASANCE
Notice is hereby given pursuant to Resolution No. 85 -107 adopted by the Board of
County Commissioners of Collier County, Florida on April 30, 1985, as amended and
supplemented (the "Resolution "), that the Collier County, Florida Capital Improvement
Revenue Bonds, Series 2002 identified below (the "Refunded Bonds ") are deemed to be
paid within the meaning of Section 27 of the Resolution and shall no longer be secured
from the Pledged Revenues (as defined in the Resolution) and the other liens created by
the Resolution for the benefit of the holders of the Refunded Bonds and shall be secured
solely from the irrevocable deposit of U.S. Treasury obligations made by the County with
U.S. Bank National Association, as Escrow Agent, in accordance with Section 27 of the
Resolution.
Further, the Refunded Bonds maturing on and after October 1, 2012 shall be
redeemed, prior to their respective maturities, on October 1, 2011 (the "Redemption
Date ") at a redemption price equal to 101% of the principal amount of each such
Refunded Bond to be redeemed, together with interest accrued thereon to the Redemption
Date. The Refunded Bonds maturing on October 1, 2011 shall be paid at maturity.
The Refunded Bonds to be defeased and redeemed are:
Maturity Principal Interest
(October 1) Amount Rate CUSIP No.
2011
2012
2013
2014
2015
2016
2021
Agenda Item No. 10C
October 26, 2010
Page 156 of 156
A
B
A -B
Prior Debt
Refunding Debt
Date
Service
Service
Savings
10/1/2011
$3,539,115
$3,469,642
$69,472
10/1/2012
2,909,253
2,827,063
82,190
10/1/2013
2,907,578
2,827,263
80,315
10/1/2014
2,910,408
2,826,363
84,045
10/1/2015
2,912,113
2,828,663
83,450
10/1/2016
2,908,313
2,829,013
79,300
10/1/2017
2,910,000
2,830,213
79,788
10/1/2018
2,911,000
2,827,813
83,188
10/1/2019
2,911,250
2,826,813
84,438
10/1/2020
2,910,500
2,827,013
83,488
10/1/2021
2,908,500
2,826,725
81,775
Total
$32,638,027
$31,746,580
$891,447