Resolution 2020-174 COLLIER COUNTY, FLORIDA
SPECIAL OBLIGATION REVENUE BONDS, SERIES 2020A
and
TAXABLE SPECIAL OBLIGATION REVENUE BONDS, SERIES 2020B
BOND RESOLUTION
Adopted September 22, 2020
TABLE OF CONTENTS
PAGE
ARTICLE I
GENERAL
SECTION 1.01. DEFINITIONS. 1
SECTION 1.02. AUTHORITY FOR RESOLUTION 8
SECTION 1.03. RESOLUTION TO CONSTITUTE CONTRACT. 8
SECTION 1.04. FINDINGS. 8
SECTION 1.05. AUTHORIZATION OF SERIES 2020A PROJECT,
REFINANCING OF PRIOR INDEBTEDNESS AND
PURCHASE OF REAL PROPERTY. 10
ARTICLE II
AUTHORIZATION, TERMS, SALE, EXECUTION AND REGISTRATION OF
BONDS
SECTION 2.01. AUTHORIZATION AND DESCRIPTION OF BONDS 11
SECTION 2.02. APPLICATION OF BOND PROCEEDS 12
SECTION 2.03. EXECUTION OF BONDS 13
SECTION 2.04. AUTHENTICATION 13
SECTION 2.05. TEMPORARY BONDS 13
SECTION 2.06. BONDS MUTILATED, DESTROYED, STOLEN OR LOST 14
SECTION 2.07. INTERCHANGEABILITY, NEGOTIABILITY AND
TRANSFER 14
SECTION 2.08. FULL BOOK ENTRY FOR BONDS 15
SECTION 2.09. FORM OF BONDS 17
ARTICLE III
REDEMPTION OF BONDS
SECTION 3.01. PRIVILEGE OF REDEMPTION 25
SECTION 3.02. SELECTION OF BONDS TO BE REDEEMED 25.
SECTION 3.03. NOTICE OF REDEMPTION 25
SECTION 3.04. REDEMPTION OF PORTIONS OF BONDS 27
SECTION 3.05. PAYMENT OF REDEEMED BONDS 27
ARTICLE IV
SECURITY; FUNDS; COVENANTS OF THE ISSUER
SECTION 4.01. BONDS NOT TO BE INDEBTEDNESS OF ISSUER 28
SECTION 4.02. COVENANT TO BUDGET AND APPROPRIATE;
PAYMENT OF BONDS 28
SECTION 4.03. REBATE FUND 29
SECTION 4.04. ANTI-DILUTION 29
SECTION 4.05. REAL PROPERTY ACCOUNT 30
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SECTION 4.06. CONSTRUCTION ACCOUNT 31
ARTICLE V
COVENANTS
SECTION 5.01. GENERAL 33
SECTION 5.02. ANNUAL BUDGET 33
SECTION 5.03. ANNUAL AUDIT 33
SECTION 5.04. FEDERAL INCOME TAXATION COVENANTS 33
ARTICLE VI
DEFAULTS AND REMEDIES
SECTION 6.01. EVENTS OF DEFAULT 35
SECTION 6.02. REMEDIES 35
SECTION 6.03. DIRECTIONS TO TRUSTEE AS TO REMEDIAL
PROCEEDINGS 36
SECTION 6.04. REMEDIES CUMULATIVE 36
SECTION 6.05. WAIVER OF DEFAULT 36
SECTION 6.06. APPLICATION OF MONEYS AFTER DEFAULT 36
ARTICLE VII
SUPPLEMENTAL RESOLUTIONS
SECTION 7.01. SUPPLEMENTAL RESOLUTION WITHOUT
BONDHOLDERS' CONSENT 38
SECTION 7.02. SUPPLEMENTAL RESOLUTION WITH BONDHOLDERS'
CONSENT. 38
ARTICLE VIII
DEFEASANCE
SECTION 8.01. DEFEASANCE 41
ARTICLE IX
PROVISIONS RELATING TO BONDS
SECTION 9.01. OFFICIAL NOTICE OF SALE 43
SECTION 9.02. PRELIMINARY OFFICIAL STATEMENT; OFFICIAL
STATEMENT 43
SECTION 9.03. APPOINTMENT OF PAYING AGENT AND REGISTRAR 43
SECTION 9.04. SECONDARY MARKET DISCLOSURE 44
ARTICLE X
MISCELLANEOUS
SECTION 10.01. SALE OF BONDS 45
SECTION 10.02. SEVERABILITY OF INVALID PROVISIONS 45
SECTION 10.03. VALIDATION AUTHORIZED 45
SECTION 10.04. REPEAL OF INCONSISTENT RESOLUTIONS 45
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SECTION 10.05. EFFECTIVE DATE 46
EXHIBIT A - GENERAL DESCRIPTION OF THE SERIES 2020A PROJECT
EXHIBIT B FORM OF OFFICIAL NOTICE OF SALE
EXHIBIT C - FORM OF CONTINUING DISCLOSURE CERTIFICATE
EXHIBIT D - FORM OF PRELIMINARY OFFICIAL STATEMENT
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RESOLUTION 2020- 174
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA AUTHORIZING THE ISSUANCE
OF NOT EXCEEDING $92,000,000 IN AGGREGATE PRINCIPAL
AMOUNT OF COLLIER COUNTY, FLORIDA SPECIAL OBLIGATION
REVENUE BONDS, SERIES 2020A TO FINANCE THE ACQUISITION,
CONSTRUCTION AND EQUIPPING OF VARIOUS CAPITAL
IMPROVEMENTS AND REFINANCE CERTAIN OUTSTANDING
INDEBTEDNESS OF THE COUNTY AND NOT EXCEEDING
$26,000,000 IN AGGREGATE PRINCIPAL AMOUNT OF COLLIER
COUNTY, FLORIDA TAXABLE SPECIAL OBLIGATION REVENUE
BONDS, SERIES 2020B TO PURCHASE CERTAIN REAL PROPERTY;
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 PUBLIC BID; DELEGATING CERTAIN AUTHORITY
TO THE CHAIR FOR THE AWARD OF THE BONDS, AND THE
APPROVAL OF THE TERMS AND DETAILS OF SAID BONDS;
AUTHORIZING THE PUBLICATION OF NOTICES OF SALE FOR
THE BONDS OR SUMMARIES 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 STA I'LMENT WITH RESPECT TO SUCH BONDS;
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:
"Act" shall mean Chapter 125, Florida Statutes, and other applicable provisions of
law.
"Amortization Installments" shall mean an amount determined as such pursuant
to the provisions of this Resolution and the applicable Official Notice of Sale and
established with respect to Term Bonds.
"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 Chair, 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 Series 2020A Bonds and the Series 2020B Bonds.
"Capital Projects Funds" shall mean the "Capital Projects Funds" of the Issuer as
described and identified in the Annual Audit.
"Chair" 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 and Comptroller for Collier
County, Florida and Ex-Officio Clerk of the Board of County Commissioners of Collier
County,Florida and such other person as may be duly authorized to act on her or his behalf,
including any Deputy Clerk.
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"Code" shall mean the Internal Revenue Code of 1986, as amended, and the
regulations and rules thereunder in effect or proposed.
"Construction Account" shall mean the fund established pursuant to Section 4.06
hereof.
"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, (2) principal of Outstanding Serial Bonds maturing in such period of time,
and(3)the Amortization Installments with respect to Outstanding Term Bonds coming due
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, Amortization
Installments on and interest on such Bonds were being paid from the date of incurrence
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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.
"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 the Issuer's financial advisor, which as of the date
hereof is PFM Financial Advisors LLC.
"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.
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"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.
"Moody's" shall mean Moody's Investors Service, and any assigns and successors
thereto.
"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 ("MSTD") 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 mean the Official Notice of Sale for the Series
2020A Bonds or the Official Notice of Sale for the Series 2020B Bonds, as the case may
be, as described in Section 9.01 hereof, the form of which is attached hereto as Exhibit B.
"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, or redemption prior
to, 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 UMB Financial
Corporation.
"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
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by the obligor to give due notice of redemption and to call such bonds 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.
"Prior Indebtedness" shall mean the Collier County, Florida Revenue Note, Draw
No. A-1-1 (JPMorgan Chase Bank), previously issued to finance certain costs related to
the Issuer's amateur sports complex.
"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."
"Rating Agencies" means Fitch, Moody's and Standard & Poor's.
"Real Property" shall mean (1) approximately 967 acres of property known as the
Hussey Property or the HHH Ranch, located within the Rural Fringe Mixed Use District
approximately three miles east of Collier Boulevard and directly north of Alligator Alley,
and (2) approximately 1,046 acres of property known as the Camp Keais Property located
within the Rural Lands Stewardship Area Overlay District southeast of the intersection of
Camp Keais Road and Oil Well Road approximately a mile east of Ave maria Boulevard,
all as more particularly described in the plans and specifications on file with the Issuer, as
the same may be amended and supplemented from time to time.
"Real Property Account" shall mean the Real Property Account established in
Section 4.05 hereof.
"Rebate Fund" shall mean the Rebate Fund established pursuant to Section 4.03
hereof.
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"Redemption Price" shall mean, with respect to any Bond or portion thereof, the
principal amount or portion thereof, plus the applicable premium, if any, payable upon
redemption thereof pursuant to such Bond or this Resolution.
"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 initial Registrar shall be UMB Financial
Corporation.
"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.
"Series" shall mean all of the Bonds of either the Series 2020A Bonds or the Series
2020B Bonds, as the case may be.
"Series 2020A Bonds" shall mean the Collier County, Florida Special Obligation
Revenue Bonds, Series 2020A.
"Series 2020A Project" shall mean the acquisition, construction and equipping of
various capital improvements within the Issuer, as such improvements are generally
described in Exhibit A hereto and more particularly described in the plans and
specifications on file with the Issuer, as the same may be amended and/or supplemented
from time to time.
"Series 2020B Bonds" shall mean the Collier County, Florida Taxable Special
Obligation Revenue Bonds, Series 2020B.
"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 and 7.02 hereof.
"Term Bonds" shall mean those Bonds which shall be designated as Term Bonds
hereby.
"Unincorporated Area Municipal Services Taxing District Fund" shall mean
the "Unincorporated Area Municipal Services Taxing District ("MSTD") Fund" of the
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"Special Revenue Funds" of the Issuer 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 and 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
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 previously issued the Prior Indebtedness to finance various costs
related to the Issuer's amateur sports complex.
(B) The Prior Indebtedness was issued as interim indebtedness and bears interest
at a variable rate of interest; upon the advice of the Financial Advisor and under current
interest rate market conditions, the Issuer hereby deems it to be in its best interests to
refinance the Prior Indebtedness with longer term, fixed interest rate debt.
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(C) The Issuer has various capital improvement needs in the form of the Series
2020A Project which are required to improve and maintain the health, safety and welfare
of the citizens of the Issuer.
(D) The Issuer hereby determines it to be in the best interest of the Issuer and its
citizens to purchase the Real Property and to finance the costs thereof through the issuance
of taxable debt in order to provide the Issuer with flexibility with respect to future uses of
the Real Property and such purchase constitutes a valid public purpose under applicable
Florida law.
(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 issue the Series 2020A Bonds in
order to finance costs of the Series 2020A Project and to refinance the Prior Indebtedness
and to issue the Series 2020B Bonds in order to acquire the Real Property, all in the manner
and to the extent provided herein.
(F) In accordance with Section 218.385, Florida Statutes, and pursuant to this
Resolution, each Series of Bonds shall be advertised for competitive bids pursuant to an
Official Notice of Sale, the form of which is attached hereto as Exhibit B, or a summary
thereof.
(G) Pursuant to the Official Notice of Sale for the Series 2020A Bonds,
competitive bids for the purchase of the Series 2020A Bonds received in accordance with
such Official Notice of Sale on or prior to 10:30 a.m., Eastern daylight savings time, on
October 7, 2020, or such other date or time as is determined by the Chair in accordance
with the terms and provisions hereof and of the Official Notice of Sale for the Series 2020A
Bonds, shall be publicly opened and announced.
(H) Pursuant to the Official Notice of Sale for the Series 2020B Bonds,
competitive bids for the purchase of the Series 2020B Bonds received in accordance with
such Official Notice of Sale on or prior to 11:00 a.m., Eastern daylight savings time, on
October 7, 2020, or such other date or time as is determined by the Chair in accordance
with the terms and provisions hereof and of the Official Notice of Sale for the Series 2020B
Bonds, shall be publicly opened and announced.
(I) Due to the present volatility and uncertainty of the market for municipal
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 Chair within the
parameters described herein.
(J) 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 Chair for the
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award of the Bonds and the approval of the terms of the Bonds in accordance with the
provisions hereof and of each Official Notice of Sale.
(K) In the event Bond Counsel shall determine that either Series of 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 such Series of Bonds in accordance
with said Section 218.385.
(L) 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.
(M) 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 SERIES 2020A PROJECT,
REFINANCING OF PRIOR INDEBTEDNESS AND PURCHASE OF REAL
PROPERTY. The financing of costs of the Series 2020A Project and the refinancing of
the Prior Indebtedness in order to establish a fixed interest rate and longer repayment term
is hereby authorized. The purchase of the Real Property is hereby authorized.
[Remainder of page intentionally left blank]
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ARTICLE II
AUTHORIZATION, TERMS, SALE, EXECUTION AND REGISTRATION OF
BONDS
SECTION 2.01. AUTHORIZATION AND DESCRIPTION OF BONDS.
(A) This Resolution creates two issues of Bonds of the Issuer to be designated as (i)
"Collier County, Florida Special Obligation Revenue Bonds, Series 2020A," issued in the
aggregate principal amount of not exceeding$92,000,000, and(ii) "Collier County, Florida
Taxable Special Obligation Revenue Bonds, Series 2020B," issued in the aggregate
principal amount of not exceeding $26,000,000. The Chair is authorized to modify the
series designation of either Series of such Bonds, in his discretion, prior to the issuance
thereof. The Chair shall determine the aggregate principal amount of each Series of the
Bonds prior to their issuance in accordance with the Official Notice of Sale provided such
principal amount does not exceed $92,000,000 for the Series 2020A Bonds and
$26,000,000 for the Series 2020B Bonds. The Series 2020A Bonds are issued for the
principal purposes of financing costs of the Series 2020A Project, refinancing the Prior
Indebtedness and paying certain costs of issuance incurred with respect to the Series 2020A
Bonds and the Series 2020B Bonds are issued for the principal purposes of financing costs
of the purchase of the Real Property and paying certain costs of issuance incurred with
respect to the Series 2020B Bonds.
The Bonds shall be dated as of their date of delivery (or such other date as the Chair
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 Chair may determine), payable semi-annually on each Interest Date, commencing
on April 1, 2021 (or such other date as the Chair 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
Chair in accordance with each Official Notice of Sale, upon the advice of the Financial
Advisor, subject to the conditions set forth in this Section 2.01. The final maturity of the
Series 2020A Bonds shall not be later than October 1, 2045. The final maturity of the
Series 2020B Bonds shall not be later than October 1, 2030. All of the terms of the Bonds
will be included in a certificate to be executed by the Chair 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, or Redemption Price, if applicable, on the Bonds is payable at the
designated corporate office of the Paying Agent, except as otherwise provided pursuant to
the provisions of Section 2.08 hereof Interest payable on any Bond on any Interest Date
11
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, or Redemption Price, if applicable, 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.
(B) The Chair, on behalf of the Issuer and only in accordance with the terms
hereof and of the applicable Official Notice of Sale, shall award each Series of the Bonds
to the underwriter or underwriters that submit a bid proposal which complies in all respects
with this Resolution and the applicable Official Notice of Sale and offers to purchase such
Series of the Bonds at the lowest true interest cost to the Issuer, as calculated by the
Financial Advisor in accordance with the terms and provisions of the applicable Official
Notice of Sale; provided, however, a Series of 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 each Official
Notice of Sale, the Chair may, in his or her sole discretion, reject any and all bids.
(C) The Series 2020A Bonds may be redeemed prior to their respective
maturities from any moneys legally available therefor, upon notice as provided in this
Resolution, and upon the terms and provisions as shall be determined by the Chair, upon
the advice of the Financial Advisor. Notwithstanding the foregoing, with respect to any
optional redemption terms for the Series 2020A Bonds, the first call date may be no later
than October 1, 2030, and there may not be any call premium. The Chair, upon the advice
of the Issuer's Financial Advisor, shall also determine which Series 2020A Bonds, if any,
shall be subject to optional redemption and may determine that none of the Series 2020A
Bonds will be subject to optional redemption. Term Bonds and the Amortization
Installments thereto may be established for the Series 2020A Bonds in accordance with the
terms of each Official Notice of Sale. The Series 2020B Bonds shall not be subject to
redemption prior to maturity.
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 the Series 2020A Bond proceeds shall be deposited
to the Construction Account to be applied to pay costs of the Series 2020A Project.
(B) A sufficient amount of the Series 2020A Bond proceeds, together with other
legally available moneys of the Issuer, shall be transmitted to the holder of the Prior
Indebtedness to prepay, in whole, all of the outstanding Prior Indebtedness.
12
(C) A sufficient amount of the Series 2020B Bond proceeds shall be deposited
to the Real Property Account to be applied to purchase the Real Property.
(D) The balance of the Series 2020A Bond proceeds and the Series 2020B Bond
proceeds shall be used to pay costs and expenses relating to the issuance of the respective
Series of 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 Chair 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 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 Series, aggregate principal amount and maturity as the
temporary Bonds surrendered. Until so exchanged, the temporary Bonds shall in all
13
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.
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 Series
and 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
14
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 Series, 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 or Redemption Price, if applicable, 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; (B) following the fifteenth day next preceding the date of first mailing of notice of
redemption of any Bonds; and (C) 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 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 Chair 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 or, in
the case of any proposed redemption of Bonds, then, for the Bonds subject to redemption,
during the 15 days next preceding the date of the first mailing of notice of such redemption
and continuing until such redemption date.
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 maturity of each
Series of the Bonds. Upon initial issuance, the ownership of each such Bond shall be
15
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, including any notice of
redemption, 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, Redemption Price, if applicable, 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, Redemption
Price, if applicable, and interest with respect to such Bond, for the purpose of giving notices
of redemption and other matters with respect to such Bond, for the purpose of registering
transfers with respect to such Bond, and for all other purposes whatsoever. The Paying
Agent shall pay all principal of, Redemption Price, if applicable, 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, Redemption Price, if applicable, 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, Redemption
Price, if applicable, 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 subject to the provisions in Section
2.07 with respect to transfers during the 15 days next preceding an Interest Date or mailing
of notice of redemption, 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.
16
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, Redemption Price, if applicable, 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 Chair 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):
[Remainder of page intentionally left blank]
17
No. R- $
UNITED STATES OF AMERICA
STATE OF FLORIDA
COLLIER COUNTY, FLORIDA
[TAXABLE] SPECIAL OBLIGATION REFUNDING REVENUE BONDS,
SERIES 2020[A][B]
Interest Maturity Date of CUSIP
Rate Date Original Issue 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, 2021
until such Principal Amount shall have been paid, except as the provisions hereinafter set
forth with respect to redemption prior to maturity may be or become applicable hereto.
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 office of UMB
Financial Corporation, Dallas, Texas, 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 UMB Financial Corporation, Dallas, Texas,
as Registrar, 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 each interest payment date and
shall be paid by a check or draft of such Paying Agent mailed to such Registered Holder at
18
the address appearing on such registration books or, at the request of such Registered
Holder, by bank wire transfer for the account of such 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 September 22, 2020,
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 finance
costs of various capital improvements and to refinance certain outstanding indebtedness of
the Issuer.] [The Bonds are being issued to finance the purchase of certain real property.]
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
19
of the beneficial owner thereof. By acceptance of a confirmation of purchase, 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 or, in the case of any
proposed redemption of Bonds, then, for the Bonds subject to redemption, during the 15
days next preceding the date of the first mailing of notice of such redemption and
continuing until such redemption date.
(INSERT REDEMPTION PROVISIONS)
Redemption of this Bond under the preceding paragraphs shall be made as provided
in the Resolution upon notice given by first class mail sent at least 30 days prior to the
redemption date to the Registered Holder hereof at the address shown on the registration
books maintained by the Registrar; provided, however, that failure to mail notice to the
Registered Holder hereof, or any defect therein, shall not affect the validity of the
proceedings for redemption of other Bonds as to which no such failure or defect has
occurred. In the event that less than the full principal amount hereof shall have been called
for redemption, the Registered Holder hereof shall surrender this Bond in exchange for one
or more Bonds in an aggregate principal amount equal to the unredeemed portion of
principal, as provided in the Resolution.
As long as the book-entry only system is used for determining beneficial ownership
of the Bonds, notice of redemption will only be sent to Cede & Co. Cede & Co. will be
responsible for notifying the DTC Participants, who will in turn be responsible for
notifying the beneficial owners of the Bonds. Any failure of Cede & Co. to notify any
DTC Participant, or of any DTC Participant to notify the beneficial owner of any such
notice, will not affect the validity of the redemption of the Bonds.
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
20
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 Chair 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 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 and Comptroller 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.
COLLIE COUNTY, F ORIDA
(SEAL)
Chairman, Board of County Commissioners
ATTEST Lb:,;
tiaierltdu jA
, csa401..).44_
- Cler<of the Circuit Court and Comptroller
for Collier Couuty, Florida and Ex-Officio
Clerk of the Board Aka%& inioners
Appro ed :s t(,1 Fe 1 g it ,Ot
Suffic i•n•, : i
_.•tl//
Count r o y
21
CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds of the Issue described in the within-mentioned
Resolution.
DATE OF AUTHENTICATION:
Registrar
By:
Authorized Officer
22
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 NOTICE: The signature to this
by an institution which is a participant in assignment must correspond with the
the Securities Transfer Agent Medallion name of the Registered Holder as it
Program (STAMP) or similar program. 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.
23
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.
24
ARTICLE III
REDEMPTION OF BONDS
SECTION 3.01. PRIVILEGE OF REDEMPTION. (A) The terms of this
Article III shall apply to redemption of Bonds.
(B) The Bonds may be subject to such optional and mandatory sinking fund
redemption provisions as are determined by the Chair in accordance with Section 2.01
hereof and as set forth in the Official Statement.
SECTION 3.02. SELECTION OF BONDS TO BE REDEEMED. The
Bonds shall be redeemed only in the principal amount of$5,000 each and integral multiples
thereof. The Issuer shall, at least 45 days prior to the redemption date (unless a shorter
time period shall be satisfactory to the Registrar), notify the Registrar of such redemption
date and of the Series and principal amount of Bonds to be redeemed. For purposes of any
redemption of less than all of the Outstanding Bonds of a single maturity of a Series, the
particular Bonds or portions of Bonds to be redeemed shall be selected not less than 35
days prior to the redemption date by the Registrar from the Outstanding Bonds of the
maturity or maturities designated by the Issuer by such method as the Registrar shall deem
fair and appropriate and which may provide for the selection for redemption of Bonds or
portions of Bonds in principal amounts of $5,000 and integral multiples thereof
Notwithstanding the foregoing, in the event that less than the entire principal amount of a
Term Bond is to be optionally redeemed, the Issuer shall determine how the principal
amount of such refunded Term Bond is to be allocated to the Amortization Installments for
the Term Bond and shall notify the Paying Agent and Registrar of such allocation.
If less than all of the Outstanding Bonds of a single maturity of a Series are to be
redeemed, the Registrar shall promptly notify the Issuer and Paying Agent(if the Registrar
is not the Paying Agent for such Bonds) in writing of the Bonds or portions of Bonds
selected for redemption and, in the case of any Bond selected for partial redemption, the
principal amount thereof to be redeemed.
SECTION 3.03. NOTICE OF REDEMPTION. Notice of such redemption,
which shall specify the Bond or Bonds (or portions thereof) to be redeemed and the date
and place for redemption, shall be given by the Registrar on behalf of the Issuer, and
(A) shall be filed with the Paying Agent of such Bonds, (B) shall be mailed first class,
postage prepaid, not less than 30 days prior to the redemption date to all Holders of Bonds
to be redeemed at their addresses as they appear on the registration books kept by the
Registrar as of the date of mailing of such notice, and (C) shall be mailed, certified mail,
postage prepaid, at least 35 days prior to the redemption date to the registered securities
depositories and two or more nationally recognized municipal bond information services
as hereinafter provided in this Section 3.03. Failure to mail such notice to such depositories
or services or the Holders of the Bonds to be redeemed, or any defect therein, shall not
25
affect the proceedings for redemption of Bonds as to which no such failure or defect has
occurred. Failure of any Holder to receive any notice mailed as herein provided shall not
affect the proceedings for redemption of such Holder's Bonds.
Each notice of redemption shall state: (1) the CUSIP numbers and any other
distinguishing number or letter of all Bonds being redeemed, (2) the original issue date of
such Bonds, (3) the maturity date and rate of interest borne by each Bond being redeemed,
(4) the redemption date, (5) the Redemption Price, (6) the date on which such notice is
mailed, (7) if less than all Outstanding Bonds are to be redeemed, the certificate number
(and, in the case of a partial redemption of any Bond, the principal amount) of each Bond
to be redeemed, (8)that on such redemption date there shall become due and payable upon
each Bond to be redeemed the Redemption Price thereof, or the Redemption Price of the
specified portions of the principal thereof in the case of Bonds to be redeemed in part only,
together with interest accrued thereon to the redemption date, and that from and after such
date interest thereon shall cease to accrue and be payable, (9) that the Bonds to be
redeemed, whether as a whole or in part, are to be surrendered for payment of the
Redemption Price at the designated office of the Registrar at an address specified, (10) the
name and telephone number of a person designated by the Registrar to be responsible for
such redemption, (11) unless sufficient funds have been set aside by the Issuer for such
purpose prior to the mailing of the notice of redemption, that such redemption is
conditioned upon the deposit of sufficient funds for such purpose on or prior to the date set
for redemption, and (12) any other conditions that must be satisfied prior to such
redemption.
In addition to the mailing of the notice described above, each notice of redemption
and payment of the Redemption Price shall meet the following requirements; provided,
however, the failure to provide such further notice of redemption or to comply with the
terms of this paragraph shall not in any manner defeat the effectiveness of a call for
redemption if notice thereof is given as prescribed above:
(A) Each further notice of redemption shall be sent by certified mail or overnight
delivery service or telecopy to all registered securities depositories then in the business of
holding substantial amounts of obligations of types comprising the Bonds (such
depositories now being The Depository Trust Company, New York, New York, Midwest
Securities Trust Company, Chicago, Illinois and Philadelphia Depository Trust Company,
Philadelphia, Pennsylvania) and to two or more national information services which
disseminate notices of prepayment or redemption of obligations such as the Bonds (such
information services now being called Financial Information, Inc.'s "Daily Called Bond
Service," Jersey City, New Jersey, Kenny Information Service's "Called Bond Service,"
New York, New York, Moody's "Municipal and Government," New York, New York and
Standard & Poor's "Called Bond Record," New York, New York).
(B) Each further notice of redemption shall be sent to such other Person, if any,
as shall be required by applicable law or regulation.
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The Issuer may provide that a redemption will be contingent upon the occurrence
of certain conditions and that if such conditions do not occur the notice of redemption will
be rescinded, provided notice of rescission shall be mailed in the manner described above
to all affected Bondholders as soon as practicable but in no event later than three business
days following knowledge by the Issuer and/or the Registrar that the condition for
redemption has not or will not occur.
SECTION 3.04. REDEMPTION OF PORTIONS OF BONDS. Any Bond
which is to be redeemed only in part shall be surrendered at any place of payment specified
in the notice of redemption (with due endorsement by, or written instrument of transfer in
form satisfactory to the Registrar duly executed by, the Holder thereof or his attorney duly
authorized in writing) and the Issuer shall execute and the Registrar shall authenticate and
deliver to the Holder of such Bond, without service charge, a new Bond or Bonds, of any
authorized denomination, as requested by such Holder in the same Series and in an
aggregate principal amount equal to and in exchange for the unredeemed portion of the
principal of the Bonds so surrendered.
SECTION 3.05. PAYMENT OF REDEEMED BONDS. Notice of
redemption having been given substantially as aforesaid, the Bonds or portions of Bonds
to be redeemed shall, on the redemption date, become due and payable at the Redemption
Price therein specified, and from and after such date (unless the Issuer shall default in the
payment of the Redemption Price) such Bonds or portions of Bonds shall cease to bear
interest. Upon surrender of such Bonds for redemption in accordance with said notice,
such Bonds shall be paid by the Registrar and/or Paying Agent at the appropriate
Redemption Price, plus accrued interest. All Bonds which have been redeemed shall be
cancelled and destroyed by the Registrar and shall not be reissued.
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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. During such time as any of the Bonds are outstanding hereunder
or any amounts due hereunder or with respect to the Bonds remain unpaid or outstanding,
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;
28
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 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, on or 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 2020A 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 Series 2020A 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 Series
2020A 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;
(B) depositing the amount determined in clause (A) above into the Rebate Fund;
(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 Series 2020A 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 upon
the issuance of any subsequent Debt (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 and Impact Fee Proceeds exclusive of(a) ad valorem
29
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 Non-Ad Valorem Revenues, General Fund Revenues, MSTD
Revenues and Impact Fee Proceeds for the prior two Fiscal Years based on the Issuer's
Annual Audits. For purposes of the calculations required by clauses (1) and (2) above,
Maximum Annual Debt Service on the Bonds and maximum annual debt service on Debt
shall be done on an aggregate basis whereby the annual debt service for each is combined
and the overall maximum is determined.
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 from its original date of issuance 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. With respect to debt service on any Debt with respect to which the Issuer elects to
receive or is otherwise entitled to receive direct subsidy payments from the United States
Department of Treasury, when determining the interest on such Debt for any particular
interest payment date the amount of the corresponding subsidy payment shall be deducted
from the amount of interest which is due and payable with respect to such Debt on the
interest payment date, but only to the extent that the Issuer reasonably believes that it will
be in receipt of such subsidy payment on or prior to such interest payment date.
SECTION 4.05. REAL PROPERTY ACCOUNT. The Issuer covenants and
agrees to establish a special account to be known as the "Collier County, Florida Taxable
Special Obligation Revenue Bond, Series 2020B Real Property Account," which shall be
used only for costs related to the purchase of the Real Estate. The Issuer may establish
separate subaccounts within the Real Property Account. Moneys in the Real Property
Account, until applied in payment of any item of the costs of the purchase of the Real
Property in the manner hereinafter provided, shall be subject to a lien and charge in favor
of the Holders of the Series 2020B Bonds and for the further security of such Holders.
There shall be paid into the Real Property Account the amounts required to be so
paid by the provisions of this Resolution, and there may be paid into the Real Property
30
Account, at the option of the Issuer, any moneys received for or in connection with the
purchase of the Real Property by the Issuer from any other source.
Any moneys received by the Issuer from the State or from the United States of
America or any agencies thereof for the purpose of financing part of the purchase of the
Real Property shall be deposited into the Real Property Account and used in the same
manner as other Series 2020B Bond proceeds are used therein; provided that separate
accounts or subaccounts may be established in the Real Property Account for moneys
received pursuant to the provisions of this paragraph whenever required by Federal or State
law.
The Issuer shall keep records of such disbursements and payments and shall retain
all such records for such period of time as required by applicable law. The Issuer shall
make available the records at all reasonable times for inspection by any Holder of any of
the Series 2020B Bonds or the agent or representative of any Holder of any of the Series
2020B Bonds.
Notwithstanding any of the other provisions of this Section 4.05, to the extent that
other moneys are not available therefor, amounts in the Real Property Account shall be
applied to the payment of principal and interest on the Series 2020B Bonds.
The date of completion of the purchase of the Real Estate shall be documented by
an Authorized Issuer Officer in the appropriate records of the Issuer. Promptly after the
date of such completion and after paying or making provision for the payment of all unpaid
items of the costs related to the purchase of the Real Property, the Issuer shall apply any
balance of moneys remaining in an account in the Real Property Account to pay debt
service on the Series 2020B Bonds or shall be applied for any other capital project or
improvement of the Issuer that is approved by the Board.
SECTION 4.06. CONSTRUCTION ACCOUNT. The Issuer covenants and
agrees to establish, a special account to be known as the " Collier County, Florida Special
Obligation Revenue Bonds, Series 2020A Construction Account," which shall be used only
for payment of costs of the Series 2020A Project. The Issuer may establish separate
accounts within the Construction Account. Moneys in the Construction Account, until
applied in payment of any item of costs of the Series 2020A Project in the manner
hereinafter provided, shall be subject to a lien and charge in favor of the Holders of the
Series 2020A Bonds and for the further security of such Holders.
There shall be paid into the Construction Account the amounts required to be so
paid by the provisions of this Resolution and there may be paid into the Construction
Account, at the option of the Issuer, any moneys received for or in connection with the
Series 2020A Project by the Issuer from any other source.
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The proceeds of insurance maintained pursuant to this Resolution against physical
loss of or damage to the Series 2020A Project, or of contractors' performance bonds with
respect thereto pertaining to the period of construction thereof, shall be deposited into the
Construction Account.
Any moneys received by the Issuer from the State or from the United States of
America or any agencies thereof for the purpose of financing part of the costs the Series
2020A Project shall be deposited into the Construction Account and used in the same
manner as other Series 2020A Bond proceeds are used therein; provided that separate
accounts or subaccounts may be established in the Construction Account for moneys
received pursuant to the provisions of this paragraph whenever required by Federal or State
law.
The Issuer covenants that the acquisition, construction and installation of the Series
2020A Project will be completed without delay and in accordance with sound engineering
practices. The Issuer shall make disbursements or payments from the Construction
Account to pay costs of the Series 2020A Project. The Issuer shall keep records of such
disbursements and payments and shall retain all such records for such period of time as
required by applicable law. The Issuer shall make available the records at all reasonable
times for inspection by any Holder of any of the Series 2020A Bonds or the agent or
representative of any Holder of any of the Series 2020A Bonds.
Notwithstanding any of the other provisions of this Section 4.06, to the extent that
other moneys are not available therefor, amounts in the Construction Account shall be
applied to the payment of principal and interest on the Series 2020A Bonds, when due.
The date of completion of the acquisition, construction and equipping of the Series
2020A Project shall be documented by an Authorized Issuer Officer in the appropriate
records of the Issuer. Promptly after the date of such completion and after paying or
making provision for the payment of all unpaid items of the costs of such Series 2020A
Project, the Issuer shall apply any balance of moneys remaining in the Construction
Account to pay debt service on the Series 2020A Bonds or shall be applied for any other
capital project or improvement of the Issuer that is approved by the Board.
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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 Series 2020A Bonds that it shall not use the
proceeds of the Series 2020A Bonds in any manner which would cause the interest on such
Series 2020A Bonds to be or become included in gross income for purposes of federal
income taxation.
The Issuer covenants with the Holders of the Series 2020A Bonds that neither the
Issuer nor any Person under its control or direction will make any use of the proceeds of
the Series 2020A Bonds(or amounts deemed to be proceeds under the Code)in any manner
which would cause the Series 2020A 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 Series 2020A Bonds to become subject to inclusion
within gross income for purposes of federal income taxation.
33
The Issuer hereby covenants with the Holders of the Series 2020A Bonds that it will
comply with all provisions of the Code necessary to maintain the exclusion from gross
income of interest on the Series 2020A 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.
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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, Redemption Price,
if applicable, 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 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
35
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
in the same manner as notices of redemption are given hereunder. 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 that were 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 or Redemption Price, if
applicable, then due on the Bonds, as follows:
(1) Unless the principal of all the Bonds shall have become due and
payable, all such moneys shall be applied:
36
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;
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 or upon mandatory redemption prior to maturity (other than
Bonds for the payment of which moneys are held pursuant to the
provisions of Section 8.01 of this Resolution), 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; and
THIRD: to the payment of the Redemption Price of any Bonds
called for optional redemption pursuant to the provisions of this
Resolution (other than Bonds called for redemption for the payment
of which moneys are held pursuant to the provisions of Section 8.01
of this Resolution).
(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.
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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 long as any Bonds of any specified maturity
38
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
Redemption Price 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.
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
39
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.
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40
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 or
Redemption Price 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 or redemption of any Bonds not theretofore surrendered for such
payment or redemption.
Any Bonds or interest installments appertaining thereto shall be deemed to have
been paid within the meaning of this Section 8.01 if(i) in case any such Bonds are to be
redeemed prior to the maturity thereof, there shall have been taken all action necessary to
call such Bonds for redemption and notice of such redemption shall have been duly given
or provision shall have been made for the giving of such notice, and (ii) 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, Redemption Price, if applicable and
interest due and to become due on said Bonds on and prior to the redemption date or
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 or Redemption Price of the Bonds for the payment of which they
were deposited and the interest accruing thereon to the date of redemption or maturity, as
the case may be; 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 or Redemption
Price, if applicable, of the refunded Bonds.
If Bonds are not to be redeemed or 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 or Redemption Price
41
of 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.
Nothing herein shall be deemed to require the Issuer to call any of the Outstanding
Bonds for redemption prior to maturity pursuant to any applicable optional redemption
provisions, or to impair the discretion of the Issuer in determining whether to exercise any
such option for early redemption.
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42
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 B and the terms and provisions thereof are hereby
authorized and approved. The Chair is hereby authorized to make such changes, insertions
and modifications as he or she shall deem necessary prior to the advertisement of an
Official Notice of Sale or a summary thereof. The Chair is hereby authorized to advertise
and publish the Official Notices 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. There shall be one Official Notice of Sale for the Series 2020A Bonds and one Official
Notice of Sale for the Series 2020B Bonds unless the Chair, upon the advice of the
Financial Advisor and Bond Counsel, determine that one Official Notice of Sale is
advisable and sufficient to carry-out the sales of both Series of Bonds.
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 D 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 Issuer
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 Chair 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 Chair. Said Official Statement, including any such changes,
amendments, modifications, omissions and additions as approved by the Chair, 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 Chair 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,UMB Financial Corporation is hereby designated Registrar and Paying
43
Agent for the Bonds. Any Authorized Issuer Officer is hereby authorized to enter into any
agreement which may be necessary to effect the transactions contemplated by this Section
9.03 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 C with such changes, amendments, modifications,
omissions and additions as shall be approved by the Chair 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.
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44
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.
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45
SECTION 10.05. EFFECTIVE DATE. This Resolution shall become effective
immediately upon its adoption.
DULY ADOPTED this 22nd day of September, 2020.
COLLIER COUNTY, FLORIDA
(SEAL)
Chairman, Board of County Commissioners
ATTEST:
•
Crystal . KinzeI
Cletk of the Circuit Court and Comptroller
for Collier Countj, Flprida and Ex-Officio
Clerk of the.Board of County Commissioners
Attest as to Chairman's
sign. ure onl
Approved;.s th Fir and Legelity:
County Attorney
46
EXHIBIT A
General Description of the Series 2020A Project
The Series 2020A Project includes various capital improvements including but not
limited to the following, as more particularly described in the plans and specifications on
file with the Issuer and as the same may be amended and/or supplemented from time to
time. Proceeds of the Series 2020A Bonds may be used for any portion of the following
and/or for any other capital improvements authorized by the Issuer.
Stormwater Capital Improvements
• Golden Gate Outfall
• West Goodlette
• Naples Park
• Freedom Park Bypass Ditch
• Weir Replacement
• Rock Weir and Dredge
• Solana Road Box Culvert
• Freedom Park Pump Station
• Lake Park Flowway
• Various Acquisitions and Easements
• Arrowhead STA
• Lake Trafford West End
• Fish Creek Westclox
• Palm River
Aquatic Improvements
• Various capital improvements at Sun & Fun, Golden Gate, Immokalee and
Vineyards aquatic facilities including, but not limited to, those related to pool
restoration, electrical, decking, ADA improvements, activity and competitive pool
improvements, bathhouse, slide tower, pump house, splash pads, flow rider and
other improvements
• Various capital improvements at Sugden Park, North Collier Regional Park and
Caxambas Regional Park including, but not limited to, those related to piers,
stationary docks, floating docks and boardwalks
• Various capital improvements at Goodland and Port of Island Marinas including,
but not limited to, assessment and renovation of dock and reparation and
replacement of seawalls
EXHIBIT B
Form of Official Notice of Sale
OFFICIAL NOTICE OF SALE
$ *
Collier County, Florida
[Taxable] Special Obligation Revenue Bonds,
Series 2020[A][B]
Electronic Bids, as Described Herein, Will Be Accepted Until
[10:30 a.m.][11:00 a.m.], Eastern Daylight Savings Time, October_, 2020*
*Preliminary,subject to change.
Collier County,Florida/Taxable/Special Obligation Revenue Bonds,Series 2020JAJ/BJ- Official Notice of Sale
Page I
OFFICIAL NOTICE OF SALE
Collier County, Florida [Taxable] Special Obligation Revenue Bonds,
Series 2020[A][B]
NOTICE IS HEREBY GIVEN that electronic bids will be received in the manner, on the
date and up to the time specified below:
DATE: October , 2020*
TIME: [10:30 A.M.] [11:00 A.M.] Eastern Daylight Savings Time*
ELECTRONIC BIDS: May be submitted only through BiDCOMP/Parity®Electronic Bid
Submission System (the "Parity System") 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, 3299 Tamiami Trail East, Naples, Florida 34112,
for the purchase of all,but not less than all,of the$ * Collier County,Florida
[Taxable] Special Obligation Revenue Bonds, Series 2020[A][B] (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
September 22, 2020 (the "Bond Resolution"). Such bids will be opened in public in
accordance with applicable legal requirements.
The Bond proceeds will be used to [fmance the acquisition, construction and
equipping of various capital improvements and refmance certain outstanding indebtedness
of the County and to pay costs of issuing the Bonds] [fmance the purchase of certain real
property and to pay costs of issuing the Bonds].
The Bonds are more particularly described in the Preliminary Official Statement
dated September _, 2020 (the "Preliminary Official Statement") relating to the Bonds,
available from the County's fmancial advisor, PFM Financial Advisors LLC, at(786) 671-
7480 or masvidals@pfm.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.
Collier County,Florida/Taxable/Special Obligation Revenue Bonds,Series 2020/A//Bj- Official Notice of Sale
Page 2
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.corn,not later than 12:00
P.M. (Noon), Eastern Daylight Savings 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 the Parity System conflict
with this Official Notice of Sale,the terms of this Official Notice of Sale shall control. For
further information about the Parity System and to subscribe in advance of the bid,potential
bidders may contact the Parity System at (212) 849-5021.
Each prospective electronic bidder must be a subscriber to the Parity System. Each
qualified prospective electronic bidder shall be solely responsible to make necessary
arrangements to view the bid form on the Parity System and to access the Parity System
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 the Parity System shall
have any duty or obligation to provide or assure access to the Parity System to any
prospective bidder, and neither the County nor the Parity System 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, the Parity System. The County is
using the Parity System 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 the Parity System 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 the Parity System 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 the
Parity System at (212) 849-5021, and notify the County's Financial Advisor, PFM
Financial Advisors LLC, at (786) 671-7480 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 the Parity System shall be at the bidder's risk
and expense, and the County shall have no liability with respect thereto.
Collier County,Florida JTaxableJ Special Obligation Revenue Bonds,Series 20201AJ/BJ- Official Notice of Sale
Page 3
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 October_,2020),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 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 combined into term bonds as
described under "STRUCTURE" below].
SERIES 2020[A][B] BONDS
The County expects to take bids for the purchase of its Collier County, Florida
[Taxable] Special Obligation Revenue Bonds, Series 2020[A][B] (the "Series 2020[A][B]
Bonds") on the same date it takes bids for the purchase of the Bonds. Such Series
2020[A][B] Bonds are expected to be issued in the approximate principal amount of
$ on the same date as the Bonds and will be issued pursuant to and secured
by the Bond Resolution.
[STRUCTURE
Any two to five consecutive maturities of the Bonds maturing after October 1, 2030
and bearing interest at the same rate may be combined, at the option of the bidder, into
term bonds with mandatory sinking fund installments equal to the amounts and years
specified in the Official Notice of Sale combined to form a term bond.]
OPTIONAL REDEMPTION
[The Bonds maturing on or after October 1,2031 are subject to redemption in whole
or in part, at any time, on or after October 1, 2030, in such order of maturities as may be
determined by the County (less than all of a single maturity to be selected by lot), at a
redemption price equal to 100% of the principal amount of the Bonds to be redeemed plus
accrued interest to the date fixed for redemption, without premium.]
[The Bonds are not subject to optional redemption prior to maturity.]
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
Collier County,Florida(Taxable]Special Obligation Revenue Bonds,Series 2020/A//BJ- Official Notice of Sale
Page 4
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 the payment of the
Bonds, in the manner described in the Bond 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 Bond 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.
See the Preliminary Official Statement for more information regarding the security
for the Bonds.
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Collier County,Florida ITaxable!Special Obligation Revenue Bonds,Series 2020fAJIB1- Official Notice of Sale
Page 5
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: Date of Delivery
Anticipated Delivery Date: October 2020*
Interest Payment Dates: April 1 and October 1,commencing April 1,2021
Principal Payment Dates(October 1):
Year* Principal Amount*
Interest Calculation: 360-day year of twelve 30-day months
Ratings: Moody's:To be announced via The Bond Buyer news
service at www.tm3.com on or prior to the sale date.
Fitch:To be announced via The Bond Buyer news service at
www.tm3.com on or prior to the sale date.
Bidding Parameters
Sale Date: October_,2020*
Bidding Method: Parity System
All or none vs.Maturity-by-Maturity: All-or-none
Bid Award Method: Lowest true interest cost
Bid Confirmation: Fax or emailed(PDF)signed Official Confirmation of Bid
Form
Bid Award: As soon as practicable on day of sale
Good Faith Deposit: $ ;See"GOOD FAITH DEPOSIT"herein
Coupon Multiples: 1/8 or 1/20 of 1%
[Minimum Coupon: For the Bonds maturing after October 1,2030,4.00%1
Optional Redemption: [Yes,on or after October 1,2030][No]
Term Bonds: [Yes,at bidder's option. See"STRUCTURE"herein.'[No]
Maximum Reoffering Price**: Maturity Unlimited
Aggregate Unlimited
Minimum Reoffering Price**: Maturity 98%
Aggregate 98%
Insurance: At bidder's option. See"MUNICIPAL BOND
INSURANCE OPTION"herein.
Adjustment Parameters
Principal Increases: Maturity Unlimited
Aggregate 15.0%
Principal Reductions: Maturity Unlimited
Aggregate 15.0%
*Preliminary,subject to change.
[**May be combined into term bonds. See"STRUCTURE"herein.]
Collier County,Florida[Taxable)Special Obligation Revenue Bonds,Series 20201A//BJ- Official Notice ofSale
Page 6
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 Daylight Savings 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. This may include the elimination of one
or more maturities. 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 successful bidder 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 the Parity System. 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
Collier County,Florida/Taxable/Special Obligation Revenue Bonds,Series 2020/A//B/- Official Notice of Sale
Page 7
adopted by DTC and its participants. The successful bidder, as a condition to 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 UMB Financial Corporation,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 and interest on the Bonds is
payable on the dates shown in the Summary Table. So long as DTC or its nominee is the
registered owner of the Bonds, payments of principal, interest and any redemption
premium 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 from PFM Financial
Advisors LLC, Financial Advisor to the County, 2222 Ponce de Leon Boulevard, Third
Floor, Coral Gables, Florida 33134, telephone: (786) 671-7480 or email
masvidals@pfm.com.
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 50 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
Collier County,Florida/Taxable)Special Obligation Revenue Bonds,Series 2020/AJ/BJ- Official Notice of Sale
Page 8
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 D. 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.
MUNICIPAL BOND INSURANCE OPTION
The purchase of municipal bond insurance, if available, will be at the option and
expense of the bidder. The successful bidder will be responsible for the payment of all
costs associated with any such insurance, including the premium charged by the insurer.
The bidder understands, by submission of its bid, that the bidder is solely responsible for
the selection of any insurer and for all negotiations with the insurer as to the premium to
be paid. If all or a portion of the Bonds are awarded on an insured basis, none of the
provisions of the Bond Resolution nor any other financing document will be altered nor
will the County consent to make additional representations, undertakings or warranties.
In addition, if the successful bidder is arranging for bond insurance for all or a
portion of the Bonds, it also shall provide the amount of the premium to be paid and
certification that the present value of the premium is less than the present value of the
interest reasonably expected to be saved as a result of the insurance and that the premium
does not exceed a reasonable arms-length charge for the transfer of credit risk
accomplished through bond insurance.
BIDDING PROCEDURE
Only electronic bids submitted via the Parity System 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
Collier County,Florida[Taxable]Special Obligation Revenue Bonds,Series 20201AJjBJ- Official Notice of Sale
Page 9
under "GENERAL" above. Each electronic bid submitted via the Parity System 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.
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. [With
respect to Bonds that mature after October 1, 2030, the minimum coupon rate for each
maturity shall be 4.00%.]
Each bid for the Bonds must meet the 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 the Parity System will be
considered. The right reserved to the County shall be final and binding upon all bidders
Collier County,Florida[Taxable]Special Obligation Revenue Bonds,Series 2020/AJ/BJ- Official Notice of Sale
Page 10
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
(see Summary Table)to the County in the form of a wire transfer in federal funds not later
than 2:30 p.m., Eastern Daylight Savings 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: First Florida Integrity Bank
Routing#: 067016325
Acct.Name: Board of County Commissioners-Concentration Account
Acct. #: 1056407
REF: [2020A/2020B Special Obligation Closing]
Attention: Ronald S. Dortch
Collier County,Florida/Taxable)Special Obligation Revenue Bonds,Series 2020/AJ/BJ- Official Notice of Sale
Page 11
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.
Neither the County nor Bond Counsel will 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 County's Financial Advisor
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.
CERTAIN 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[Taxable)Special Obligation Revenue Bonds,Series 2020/AJIBJ- Official Notice of Sale
Page 12
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.
[ESTABLISHMENT OF ISSUE PRICE
The winning bidder shall assist the County in establishing the issue price of the
Bonds and shall execute and deliver to the County on or prior to the closing date for the
Bonds an "issue price" or similar certificate setting forth the reasonably expected initial
offering prices to the public or the actual sales price or prices of the Bonds, together with
the supporting pricing wires or equivalent communications, substantially in the applicable
form attached hereto as Exhibit B, with such modifications as may be appropriate or
necessary, in the reasonable judgment of the winning bidder, the County and Bond
Counsel.
The County intends that the provisions of Treasury Regulation Section
1.14 8-1(f)(3)(i) (defining "competitive sale" for purposes of establishing the issue price of
the Bonds) will apply to the initial sale of the Bonds ("competitive sale requirements")
because:
(1) the County has disseminated this Official Notice of Sale to potential
underwriters in a manner that is reasonably designed to reach potential underwriters;
(2) all bidders shall have an equal opportunity to bid;
(3) the County expects to receive bids from at least three underwriters of
municipal bonds who have established industry reputations for underwriting new
issuances of municipal bonds; and
(4) the County anticipates awarding the sale of the Bonds to the bidder
who submits a firm offer to purchase the Bonds at the lowest true interest cost, as
set forth in this Official Notice of Sale.
Any bid submitted pursuant to this Official Notice of Sale shall be considered a firm
offer for the purchase of the Bonds, as specified in the bid. BY SUBMITTING A BID
FOR THE BONDS, A BIDDER REPRESENTS AND WARRANTS TO THE
COUNTY THAT THE BIDDER HAS AN ESTABLISHED INDUSTRY
REPUTATION FOR UNDERWRITING NEW ISSUANCES OF MUNICIPAL
Collier County,Florida(Taxable)Special Obligation Revenue Bonds,Series 20201AJ/BJ- Official Notice of Sale
Page 13
BONDS SUCH AS THE BONDS AND SUCH BIDDER'S BID IS SUBMITTED FOR
AND ON BEHALF OF SUCH BIDDER BY AN OFFICER OR AGENT WHO IS
DULY AUTHORIZED TO BIND THE BIDDER TO A LEGAL, VALID AND
ENFORCEABLE CONTRACT FOR THE PURCHASE OF THE BONDS. Once the
bids are communicated electronically via the Parity System to the County, each bid will
constitute an irrevocable offer to purchase the Bonds on the terms herein and therein
provided.
In the event that the competitive sale requirements are not satisfied,the County shall
so advise the winning bidder. In such case, the County shall treat the first price at which
10% of a maturity of the Bonds is sold to the public (the "10% test") as the issue price of
that maturity, applied on a maturity-by-maturity basis. The winning bidder shall advise
the County if any maturity of the Bonds satisfies the 10%test as of the date and time of the
award of the Bonds. [The County will not require bidders to comply with the "hold-the-
offering-price rule" set forth in Treasury Regulation Section 1.148-1(f)(2)(ii) and therefore
does not intend to use the initial offering price to the public as of the sale date of any
maturity of the Bonds as the issue price of that maturity. Bids will not be subject to
cancellation by the bidders in the event that the competitive sale requirements are not
satisfied; provided, however, the County reserves the right to reject any and all bids, for
any reason, as set forth under "RIGHT OF REJECTION" herein. Bidders should prepare
their bids on the assumption that all of the maturities of the Bonds will be subject to the
10% test in order to establish the issue price of the Bonds.]
If the competitive sale requirements are not satisfied, then until the 10% test has
been satisfied as to each maturity of the Bonds, the winning bidder agrees to promptly
report to the County the prices at which the unsold Bonds of each maturity have been sold
to the public. That reporting obligation shall continue, whether or not the closing date for
the Bonds has occurred, until the 10% test has been satisfied for each maturity or until all
Bonds of that maturity have been sold.
By submitting a bid and if the competitive sale requirements are not met,each bidder
confirms that: (i) any agreement among underwriters, any selling group agreement and
each retail distribution agreement(to which the bidder is a party)relating to the initial sale
of the Bonds to the public, together with the related pricing wires, contains or will contain
language obligating each underwriter, each dealer who is a member of the selling group,
and each broker-dealer that is a party to such retail distribution agreement, as applicable,
to report the prices at which it sells to the public the unsold Bonds of each maturity allotted
to it until it is notified by the winning bidder that either the 10% test has been satisfied as
to the Bonds of that maturity or all Bonds of that maturity have been sold to the public, if
and for so long as directed by the winning bidder and as set forth in the related pricing
wires, and (ii) any agreement among underwriters relating to the initial sale of the Bonds
to the public, together with the related pricing wires, contains or will contain language
Collier County,Florida!Taxable]Special Obligation Revenue Bonds,Series 2020/AJ/BJ- Official Notice of Sale
Page 14
obligating each underwriter that is a party to a retail distribution agreement to be employed
in connection with the initial sale of the Bonds to the public to require each broker-dealer
that is a party to such retail distribution agreement to report the prices at which it sells to
the public the unsold Bonds of each maturity allotted to it until it is notified by the winning
bidder or such underwriter that either the 10% test has been satisfied as to the Bonds of
that maturity or all Bonds of that maturity have been sold to the public, if and for so long
as directed by the winning bidder or such underwriter and as set forth in the related pricing
wires.
Sales of any Bonds to any person that is a related party to an underwriter shall not
constitute sales to the public for purposes of this Official Notice of Sale. Further, for
purposes of this Official Notice of Sale:
(i) "public"means any person other than an underwriter or a related party
(as defined in Section 1.150-1(b) of the Treasury Regulations)to an underwriter,
(ii) "underwriter" means (A) any person that agrees pursuant to a written
contract (i.e. this Official Notice of Sale) with the County (or with the lead
underwriter to form an underwriting syndicate) to participate in the initial sale of
the Bonds to the public and(B)any person that agrees pursuant to a written contract
directly or indirectly with a person described in clause(A)to participate in the initial
sale of the Bonds to the public (including a member of a selling group or a party to
a retail distribution agreement participating in the initial sale of the Bonds to the
public),
(iii) generally, a purchaser of any of the Bonds is a "related party" to an
underwriter if the underwriter and the purchaser are subject, directly or indirectly,
to (i) at least 50% common ownership of the voting power or the total value of their
stock, if both entities are corporations (including direct ownership by one
corporation of another), (ii) more than 50% common ownership of their capital
interests or profits interests, if both entities are partnerships (including direct
ownership by one partnership of another), or (iii) more than 50% common
ownership of the value of the outstanding stock of the corporation or the capital
interests or profit interests of the partnership, as applicable, if one entity is a
corporation and the other entity is a partnership (including direct ownership of the
applicable stock or interests by one entity of the other), and
(iv) "sale date" means the date that the Bonds are awarded by the County to the
winning bidder.]
Collier County,Florida[Taxable]Special Obligation Revenue Bonds,Series 2020/A1/B1- Official Notice of Sale
Page 15
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 E 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 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/Burt L. Saunders
Chairman
Dated: September , 2020
Collier County,Florida(Taxable/Special Obligation Revenue Bonds,Series 2020/A11B/- Official Notice of Sale
Page 16
EXHIBIT A
TRUTH-IN-BONDING STATEMENT
October_, 2020
Board of County Commissioners
of Collier County, Florida,
Re: Collier County,Florida[Taxable] Special Obligation Revenue Bonds,
Series 2020[A][B]
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[financing the acquisition, construction and
equipping of various capital improvements and refinancing certain outstanding debt of the
County and paying certain costs of issuance of the Bonds] [financing the purchase of
certain real estate 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
certain non-ad valorem revenues of the County that are allocated to and accounted for in
certain funds of the County described in the Preliminary Official Statement for the Bonds
which are legally available to make payments on the Bonds. Authorizing the Bonds will
result in an average of $ (average annual debt service) of such non-ad
valorem revenues not being available to finance other services of the County each year for
approximately years.
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
B-1
EXHIBIT B
FORM OF ISSUE PRICE CERTIFICATE
COLLIER COUNTY,FLORIDA
SPECIAL OBLIGATION REVENUE BONDS, SERIES 2020A
ISSUE PRICE CERTIFICATE
The undersigned, on behalf of (" "), hereby represents and
warrants that it has an established industry reputation for underwriting new issuances of
municipal bonds and certifies as set forth below with respect to the sale of the above-
captioned obligations (the "Bonds").
[Alternate 1 - Competitive Safe Harbor Met]
[1. Reasonably Expected Initial Offering Price. (a) As of the Sale Date, the
reasonably expected initial offering prices of the Bonds to the Public by are
the prices listed in Schedule A (the "Expected Offering Prices"). The Expected Offering
Prices are the prices for the Maturities of the Bonds used by in formulating its
bid to purchase the Bonds. Attached as Schedule B is a true and correct copy of the bid
provided by to purchase the Bonds.
(b) was not given the opportunity to review other bids prior to
submitting its bid.
(c) The bid submitted by constituted a firm offer to purchase the
Bonds.]
[Alternate 2 - Competitive Sale Requirements Not Met—General Rule to Apply]
[1. Sale of the Bonds. As of the date of this certificate, for each Maturity of the
Bonds, the first price at which at least 10% of such Maturity of the Bonds was sold to the
Public is the respective price listed in Schedule A. Each maturity of the Bonds of which at
least 10% of such maturity has not yet been sold to the public (the "Unsold Bonds") is also
identified in Schedule A. Attached as Schedule B are true and correct copies of the bid
provided by to purchase the Bonds, and the pricing wire or equivalent
communication for the Bonds. has and will comply with the requirements set
forth under the heading "Establishment of Issue Price Certificate" in the Official Notice of
Sale for the Bonds, including reporting on the sale prices of the Unsold Bonds after the
date hereof as provided therein.]
2. Defined Terms. (a)Issuer means Collier County, Florida.
B-2
(b) Maturity means Bonds with the same credit and payment terms. Bonds with
different maturity dates, or Bonds with the same maturity date but different stated interest
rates, are treated as separate Maturities.
(c) Public means any person (including an individual, trust, estate, partnership,
association, company, or corporation) other than an Underwriter or a related party to an
Underwriter. The term "related party" for purposes of this certificate generally means any
two or more persons who have greater than 50 percent common ownership, directly or
indirectly.
(d) Sale Date means the first day on which there is a binding contract in writing
for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is , 2020.
(e) Underwriter means (i) any person that agrees pursuant to a written contract
with the Issuer (or with the lead underwriter to form an underwriting syndicate) to
participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees
pursuant to a written contract directly or indirectly with a person described in clause (i) of
this paragraph to participate in the initial sale of the Bonds to the Public (including a
member of a selling group or a party to a retail distribution agreement participating in the
initial sale of the Bonds to the Public).
The representations set forth in this certificate are limited to factual matters only.
Nothing in this certificate represents 's interpretation of any laws, including
specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and
the Treasury Regulations thereunder. The undersigned understands that the foregoing
information will be relied upon by the Issuer with respect to certain of the representations
set forth in the Certificate as to Arbitrage and Certain Other Tax Matters relating to the
Bonds and with respect to compliance with the federal income tax rules affecting the
Bonds, and by Nabors, Giblin & Nickerson, P.A. in connection with rendering its opinion
that the interest on the Bonds is excluded from gross income for federal income tax
purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal
income tax advice that it may give to the Issuer from time to time relating to the Bonds.
By:
[Name]
Dated: , 2020
B-3
SCHEDULE A
EXPECTED OFFERING PRICES
OR
PRICES OF SOLD AND UNSOLD BONDS
B-4
SCHEDULE B
COPY OF UNDERWRITER'S BID AND PRICING WIRE
B-5
EXHIBIT C
Form of Continuing Disclosure Certificate
FORM OF CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the "Disclosure Certificate") dated , 2020 is
executed and delivered by Collier County, Florida (the "Issuer") in connection with the issuance by the
Issuer of its $ Special Obligation Revenue Bonds, Series 2020A (the "2020A Bonds") and its
$ Taxable Special Obligation Revenue Bonds, Series 2020B (the "2020B Bonds" and together
with the 2020A Bonds, the "Bonds"). The Bonds are being issued pursuant to Resolution No. 2020-
adopted by the Board of County Commissioners of the Issuer(the"Board")on ,2020,as it may
be 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 (defined
below) of the Bonds and in order to assist the Participating Underwriters in complying with the
continuing disclosure requirements of the Rule(defined below).
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 herein, 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 initially,Digital Assurance Certification LLC, or any successor
Dissemination Agent designated in writing by the Issuer and which has filed with the Issuer a written
acceptance of such designation.
"EMMA" shall mean the Electronic Municipal Market Access web portal of the MSRB, located at
http://www.emma.msrb.org.
"Event of Bankruptcy"shall be considered to have occurred when any of the following occur: the
appointment of a receiver, fiscal agent or similar officer for an Obligated Person in a proceeding under
the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or
governmental authority has assumed jurisdiction over substantially all of the assets or business of the
Obligated Person, or if such jurisdiction has been assumed by leaving the existing governmental body
and officials or officers in possession but subject to the supervision and orders of a court or governmental
authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a
court or governmental authority having supervision or jurisdiction over substantially all of the assets or
business of the Obligated Person.
"Financial Obligation" shall mean a (i) debt obligation; (ii) derivative instrument entered into in
connection with, or pledged as security or a source of payment for, an existing or planned debt
obligation; or (iii) a guarantee of (i) or (ii). The term Financial Obligation shall not include municipal
25694/009/01629472.DOCv2 E-1
securities as to which a final official statement has been provided to the Municipal Securities Rulemaking
Board consistent with the Rule.
"Listed Events"shall mean any of the events listed in Section 5(a)of this Disclosure Certificate.
"MSRB"shall mean the Municipal Securities Rulemaking Board.
"Obligated Person" shall mean any person, including the Issuer, who is either generally or
through an enterprise, fund, or account of such person committed by contract or other arrangement to
support payment of all, or part of the obligations on the Bonds (other than providers of municipal bond
insurance,letters of credit,or other liquidity or credit facilities).
"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. As of the
date hereof, the Repository recognized by the Securities and Exchange Commission for such purpose is
the MSRB,which currently accepts continuing disclosure submissions through EMMA.
"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.
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, 2021 with respect to the report for the 2020 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.
(b) If on the fifteenth (15th) day prior to the annual filing date, the Dissemination
Agent has not received a copy of the Annual Report, the Dissemination Agent shall contact the Issuer by
telephone and in writing(which may be by e-mail) to remind the Issuer of its undertaking to provide the
Annual Report pursuant to Section 3(a). Upon such reminder, the Issuer shall either (i) provide the
Dissemination Agent with an electronic copy of the Annual Report no later than two (2) business days
prior to the annual filing date, or (ii) instruct the Dissemination Agent in writing that the Issuer will not
be able to file the Annual Report within the time required under this Agreement, state the date by which
the Annual Report for such year will be provided and instruct the Dissemination Agent that a failure to
file has occurred and to immediately send a notice to the Repository in substantially the form attached as
25694/009/01629472.DOCv2 E-2
Exhibit A, accompanied by a cover sheet completed by the Dissemination Agent in the form set forth in
Exhibit B.
(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;
(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;and
(iii) if the Dissemination Agent has not received an Annual Report by 6:00 p.m.
Eastern time on the annual filing date(or,if such annual filing date falls on a Saturday,Sunday or
holiday, then the first business day thereafter) for the Annual Report, a failure to file shall have
occurred and the Issuer irrevocably directs the Dissemination Agent to immediately send a notice
to the Repository in substantially the form attached as Exhibit A without reference to the
anticipated filing date for the Annual Report, accompanied by a cover sheet completed by the
Dissemination Agent in the form set forth in Exhibit B.
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 , 2020 (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 of the historical financial and operating data set forth in the Official Statement
under the captions:
(i) "Collier County, Florida Historical Non-Ad Valorem Revenues in General Fund
and Unincorporated Area Municipal Services Taxing District Fund";
(ii) "Collier County, Florida Other Obligations Payable From Non-Ad Valorem
Revenues";and
(iii) "Collier County, Florida Combined General Fund And MSTD Revenues,
Expenditures And Fund Balance."
The information provided under Section 4(b) may be included by specific reference to
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.
25694/009/01629472.DOCv2 E-3
The Issuer reserves the right to modify from time to time the specific types of information
provided in its Annual Report or the format of the presentation of such information, to the extent
necessary or appropriate in the judgment of the Issuer; provided that the Issuer agrees that any such
modification will be done in a manner consistent with the Rule.
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. Such notice shall
be given in a timely manner not in excess of ten(10)business days after the occurrence of the event, with
the exception of the event described in number 17 below,which notice shall be given in a timely manner:
1. principal and interest payment delinquencies;
2. non-payment related defaults,if material;
3. unscheduled draws on debt service reserves reflecting financial difficulties;
4. unscheduled draws on credit enhancements reflecting financial difficulties;
5. substitution of credit or liquidity providers,or their failure to perform;
6. adverse tax opinions, the issuance by the Internal Revenue Service of proposed
or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701
TEB) or other material notices or determinations with respect to the tax status of
the Bonds,or other material events affecting the tax status of the Bonds;
7. modifications to rights of the holders of the Bonds,if material;
8. Bond calls,if material,and tender offers;
9. defeasances;
10. release, substitution, or sale of property securing repayment of the Bonds, if
material;
11. ratings changes;
12. an Event of Bankruptcy or similar event of an Obligated Person;
13. the consummation of a merger, consolidation, or acquisition involving an
Obligated Person or the sale of all or substantially all of the assets of the
Obligated Person, other than in the ordinary course of business, the entry into a
definitive agreement to undertake such an action or the termination of a
definitive agreement relating to any such actions, other than pursuant to its
terms,if material;
25694/009/01629472.DOCv2 E-4
14. appointment of a successor or additional trustee or the change of name of a
trustee,if material;
15. incurrence of a Financial Obligation of the issuer or obligated person,if material,
or agreement to covenants, events of default, remedies, priority rights, or other
similar terms of a Financial Obligation of the issuer or obligated person, any of
which affect security holders,if material;
16. default, event of acceleration, termination event, modification of terms, or other
similar events under the terms of the Financial Obligation of the issuer or
obligated person, any of which reflect financial difficulties;and
17. notice of any failure on the part of the Issuer to meet the requirements of
Section 3 hereof.
(b) The notice required to be given in paragraph 5(a) above shall be filed with any
Repository,in electronic format as prescribed by such Repository.
SECTION 6. IDENTIFYING INFORMATION. In accordance with the Rule, all disclosure filings
submitted pursuant to this Disclosure Certificate to any Repository must be accompanied by 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, so long as there is no remaining liability of the Issuer, 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.
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
Digital Assurance Certification,L.L.C.
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:
25694/009/01629472.DOCv2 E-5
(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.
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, 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. The continuing disclosure obligations of the Issuer set forth herein
constitute a contract with the holders of the Bonds. 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.
25694/009/01629472.DOCv2 E-6
SECTION 12. DUTIES,IMMUNITIES AND LIABILITIES OF DISSEMINATION AGENT.
(a) The Dissemination Agent shall have only such duties as are specifically set forth in this
Certificate. The Dissemination Agent's obligation to deliver the information at the times and with the
contents described herein shall be limited to the extent the Issuer has provided such information to the
Dissemination Agent as required by this Disclosure Certificate. The Dissemination Agent shall have no
duty with respect to the content of any disclosures or notice made pursuant to the terms hereof. The
Dissemination Agent shall have no duty or obligation to review or verify any Information or any other
information, disclosures or notices provided to it by the Issuer and shall not be deemed to be acting in
any fiduciary capacity for the Issuer, the Holders of the Bonds or any other party. The Dissemination
Agent shall have no responsibility for the Issuer's failure to report to the Dissemination Agent a Notice
Event or a duty to determine the materiality thereof. The Dissemination Agent shall have no duty to
determine, or liability for failing to determine, whether the Issuer has complied with this Disclosure
Certificate. The Dissemination Agent may conclusively rely upon certifications of the Issuer at all times.
The obligations of the Issuer under this Section shall survive resignation or removal of the
Dissemination Agent and defeasance,redemption or payment of the Bonds.
(b) The Dissemination Agent may, from time to time, consult with legal counsel (either in-
house or external) of its own choosing in the event of any disagreement or controversy, or question or
doubt as to the construction of any of the provisions hereof or its respective duties hereunder, and shall
not incur any liability and shall be fully protected in acting in good faith upon the advice of such legal
counsel. The reasonable fees and expenses of such counsel shall be payable by the Issuer.
(c) All documents, reports, notices, statements, information and other materials provided to
the MSRB under this Certificate shall be provided in an electronic format and accompanied by identifying
information as prescribed by the MSRB.
[Remainder of page intentionally left blank]
25694/009/01629472.DOCv2 E-7
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 ,2020
COLLIER COUNTY,FLORIDA
By:
Name: Burt L. Saunders
Title: Chairman
Approved as to Form and Legal Sufficiency:
By:
Name: Jeffrey A.Klatzkow
Title: County Attorney
ACKNOWLEDGED BY:
DIGITAL ASSURANCE CERTIFICATION L.L.C.,
as Dissemination Agent
By:
Name:
Title:
25694/009/01629472.DOCv2 E-8
EXHIBIT A
NOTICE TO REPOSITORY OF FAILURE TO FILE ANNUAL REPORT
Issuer:
Obligated Person:
Name(s)of Bond Issue(s):
Date(s) of Issuance:
Date(s)of Disclosure
Agreement:
CUSIP Number:
NOTICE IS HEREBY GIVEN that the Issuer has not provided an Annual Report with respect to
the above-named Bonds as required by the Continuing Disclosure Certificate between the Issuer and
Digital Assurance Certification, L.L.C., as Dissemination Agent. [The Issuer has notified the
Dissemination Agent that it anticipates that the Annual Report will be filed by ].
Dated:
Digital Assurance Certification, L.L.C., as Dissemination
Agent,on behalf of the Issuer
cc:
25694/009/01629472.DOCv2 E-9
EXHIBIT B
EVENT NOTICE COVER SHEET
This cover sheet and accompanying "event notice" will be sent to the MSRB, pursuant to Securities and
Exchange Commission Rule 15c2-12(b)(5)(i)(C)and(D).
Issuer's and/or Other Obligated Person's Name:
Issuer's Six-Digit CUSIP Number:
or Nine-Digit CUSIP Number(s)of the bonds to which this event notice relates:
Number of pages attached:
Description of Notice Events(Check One):
1. "Principal and interest payment delinquencies;"
2. "Non-Payment related defaults,if material;"
3. "Unscheduled draws on debt service reserves reflecting financial difficulties;"
4. "Unscheduled draws on credit enhancements reflecting financial difficulties;"
5. "Substitution of credit or liquidity providers,or their failure to perform;"
6. "Adverse tax opinions,IRS notices or events affecting the tax status of the security;"
7. "Modifications to rights of securities holders,if material;"
8. "Bond calls,if material;"
9. "Defeasances;"
10. "Release,substitution, or sale of property securing repayment of the securities,if material;"
11. "Rating changes;"
12. "Tender offers;"
13. "Bankruptcy,insolvency,receivership or similar event of the obligated person;"
14. "Merger,consolidation,or acquisition of the obligated person,if material;"and
15. "Appointment of a successor or additional trustee, or the change of name of a trustee, if
material."
16. "Incurrence of a Financial Obligation of the Issuer or Obligated Person, if material, or
agreement to covenants, events of default, remedies, priority rights, or other similar terms of a
Financial Obligation of the Issuer or Obligated Person, any of which affect security holders, if
material;"and
17. "Default, event of acceleration, termination event, modification of terms, or other similar
events under the terms of the Financial Obligation of the Issuer or Obligated Person, any of
which reflect financial difficulties."
Failure to provide annual financial information as required.
25694/009/01629472.DOCv2 E-10
I hereby represent that I am authorized by the issuer or its agent to distribute this information publicly:
Signature:
Name: Title:
Digital Assurance Certification,L.L.C.
315 E.Robinson Street,Suite 300
Orlando,FL 32801
407-515-1100
Date:
25694/009/01629472.DOCv2 E-11
EXHIBIT D
Form of Preliminary Official Statement
PRELIMINARY OFFICIAL STATEMENT DATED ,2020
NEW ISSUE—FULL BOOK ENTRY See "RATINGS"herein
In the opinion of Nabors, Giblin & Nickerson, P.A., Tampa, Florida, Bond Counsel, under existing
statutes, regulations, rulings and court decisions and subject to the conditions described herein under "TAX
MATTERS," interest on the Series 2020A Bonds is (a) excludable from gross income of the owners thereof for
federal income tax purposes except as otherwise described herein under the caption "TAX MATTERS,"and(b) not
an item of tax preference for purposes of the federal alternative minimum tax. Such interest, however, may be
subject to other federal income tax consequences referred to herein under "TAX MATTERS." See "TAX
MATTERS"herein for a general discussion of Bond Counsel's opinion and other tax considerations. In the opinion
of Bond Counsel, interest on the Series 2020B Bonds is not excludable from gross income of the owners thereof for
federal income tax purposes. See "TAX MATTERS"herein.
$ * $ *
[DAC LOGO] COLLIER COUNTY,FLORIDA COLLIER COUNTY,FLORIDA
Special Obligation Revenue Bonds, Taxable Special Obligation Revenue Bonds,
Series 2020A Series 2020B
Dated: Date of Delivery Due:October 1,as shown on inside cover
The $ * Collier County, Florida Special Obligation Revenue Bonds, Series 2020A (the
"Series 2020A Bonds") and $ * Collier County, Florida Taxable Special Obligation Revenue
Bonds, Series 2020B (the "Series 2020B Bonds" and together with the Series 2020A Bonds, the "Series 2020
Bonds") are being issued as fully registered bonds, in denominations of$5,000 or any integral multiple
thereof. Interest on the Series 2020 Bonds is payable semiannually on each April 1 and October 1,
commencing April 1, 2021, and will be payable by check or draft of UMB Financial Corporation, Dallas,
Texas, 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 UMB Financial Corporation, Dallas, Texas, as
Registrar, as of the close of business on the fifteenth day (whether or not a business day) of the calendar
month next preceding the applicable interest payment date; provided, however, at the request of any
holder of Series 2020 Bonds, interest payments may be made by bank wire transfer to the account
designated by such holder. Principal of the Series 2020 Bonds is payable to the holder thereof at the
designated corporate office of the Paying Agent. Upon initial issuance, the Series 2020 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 2020 Bonds, payments of the principal of and
interest on the Series 2020 Bonds will be mailed directly to DTC or Cede & Co., which is to remit such
payments to the DTC Participants {as defined herein), which in turn are to remit such payments to the
Beneficial Owners(as defined herein)of the Series 2020 Bonds. See"DESCRIPTION OF THE SERIES 2020
BONDS—Book-Entry Only System"herein.
The Series 2020A Bonds are subject to redemption prior to maturity, as set forth herein. The
Series 2002B Bonds are not subject to redemption prior to maturity.
The Series 2020 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. 2020-_adopted by the Board of County Commissioners of the County (the
25694/009/01626500.DOCv3
"Board") on September 22, 2020, as it may be amended and supplemented from time to time (the
"Resolution").
The Series 2020A Bonds are being issued to provide funds to (i) finance the acquisition,
construction and equipping of various capital improvements, (ii) refinance certain outstanding
indebtedness of the County and (iii) pay certain costs and expenses relating to the issuance of the Series
2020A Bonds. The Series 2020B Bonds are being issued to provide funds to (i) finance the purchase of
certain real property, and (ii) pay certain costs and expenses relating to the issuance of the Series 2020B
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 the principal of and interest on the Series 2020 Bonds when due in
the manner and to the extent provided in the Resolution and described under "SECURITY FOR THE
SERIES 2020 BONDS"herein.
THE SERIES 2020 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 2020 BOND SHALL HAVE THE RIGHT TO COMPEL THE EXERCISE OF
ANY AD VALOREM TAXING POWER TO PAY SUCH SERIES 2020 BOND, OR BE ENTITLED TO
PAYMENT OF SUCH SERIES 2020 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 2020 Bonds are offered when, as, and if issued and received by the Underwriters, 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. PFM Financial Advisors LLC.,
Coral Gables, Florida, is serving as Financial Advisor to the County. It is expected that the Series 2020 Bonds in
definitive form will be available for delivery to the Underwriters in New York, New York at the facilities of DTC on
or about ,2020.
Electronic bids for each of the Series 2020A Bonds and the Series 2020B Bonds will be received
through BIDCOMP/Parity Electronic Bid Submission System as described in the respective Official
Notices of Sale.
Dated: ,2020
*Preliminary,subject to change.
25694/009/01626500.DOCv3
MATURITIES,AMOUNTS,INTEREST RATES,
PRICES,YIELDS AND INITIAL CUSIP NUMBERS
$ *
COLLIER COUNTY,FLORIDA
Special Obligation Revenue Bonds, Series 2020A
Initial
Maturity Interest CUSIP
(October 1)* Amount* Rate Price Yield Numbers**
$ *
COLLIER COUNTY,FLORIDA
Taxable Special Obligation Revenue Bonds, Series 2020B
Initial
Maturity Interest CUSIP
October 1)* Amount* Rate Price Yield 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.
*** Subject to term bond option as described in the section entitled "STRUCTURE" in the Official
Notice of Sale.
25694/009/01626500.DOCv3
RED HERRING LANGUAGE:
This Preliminary Official Statement and the information contained herein are subject to completion or
amendment. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell
or a solicitation of an offer to buy, nor shall there be any sale of the Series 2020 Bonds in any jurisdiction
in which such offer, solicitation or sale would be unlawful prior to registration, qualification or
exemption under the securities laws 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.
25694/009/01626500.DOCv3
COLLIER COUNTY,FLORIDA
Government Complex
3299 Tamiami Trail East
Naples,Florida 34112
(239)252-8097
BOARD OF COUNTY COMMISSIONERS
Burt L.Saunders,Chairman
Andy Solis,Vice-Chairman
Donna Fiala,Commissioner
William L.McDaniel,Jr.,Commissioner
Penny Taylor,Commissioner
COUNTY MANAGER
Leo E. Ochs,Jr.
CLERK OF THE CIRCUIT COURT AND COMPTROLLER
Crystal K. Kinzel
DIRECTOR OF FINANCE AND ACCOUNTING
Derek M.Johnsen
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
PFM Financial Advisors LLC
Coral Gables,Florida
25694/009/01626500.DOCv3
No dealer, broker, salesman or other person has been authorized by the County or the
Underwriters to give any information or to make any representations in connection with the Series 2020
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 2020 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 Underwriters 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
Underwriters do 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 2020 BONDS, THE
UNDERWRITERS MAY OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR
MAINTAIN THE MARKET PRICE OF SUCH SERIES 2020 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 2020 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 2020 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 2020 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.
25694/009/01626500.DOCv3
TABLE OF CONTENTS
Page
INTRODUCTION 1
PLAN OF FINANCE 2
Series 2020A Project 2
Refinance Prior Indebtedness 3
Acquisition of Real Property 3
DESCRIPTION OF THE SERIES 2020 BONDS 4
General 4
Book-Entry Only System 4
Interchangeability,Negotiability and Transfer 6
Series 2020 Bonds Mutilated,Destroyed,Stolen or Lost 8
Optional Redemption 8
Mandatory Redemption 8
Selection of Bonds to be Redeemed 9
Notice of Redemption 9
SECURITY FOR THE SERIES 2020 BONDS 10
General 10
No Reserve for the Series 2020 Bonds 11
Anti-Dilution Test 11
2020B Real Property Account 12
Construction Account 13
GENERAL INFORMATION REGARDING NON-AD VALOREM REVENUES 14
General 14
Taxes 15
Intergovernmental Revenues 17
Licenses,Permits and Impact Fees 22
Charges for Services 22
Fines and Forfeitures 23
Interest 23
Miscellaneous Revenues 23
CERTAIN FINANCIAL MATTERS 27
Financial and Operating Plan(Budget)and Capital Improvement Planning Policy 27
Financial Reporting and Annual Audit 27
General Fund and Unincorporated Area Municipal Services Taxing District Fund 27
Classification of Local Government Expenditures 30
RISK FACTORS 31
RETIREMENT PLAN AND OTHER POST EMPLOYMENT BENEFITS 34
Florida Retirement System 34
County's Plan Description and Benefits Provided 44
Sheriffs Plan Description and Benefits Provided 47
ESTIMATED SOURCES AND USES OF FUNDS 50
DEBT SERVICE SCHEDULE 51
INVESTMENT POLICY 52
LEGAL MATTERS 55
LITIGATION 56
25694/009/01626500.DOCv3
DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS 56
TAX MATTERS 56
Series 2020A Bonds 56
Series 2020B Bonds 59
RATINGS 59
FINANCIAL ADVISOR 59
AUDITED FINANCIAL STATEMENTS 60
ENFORCEABILITY OF REMEDIES 60
CONTINUING DISCLOSURE 60
UNDERWRITING 61
CONTINGENT FEES 61
ACCURACY AND COMPLETENESS OF OFFICIAL STATEMENT 61
AUTHORIZATION OF OFFICIAL STATEMENT 63
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 30,2019
APPENDIX D-1-Form of Opinion of Bond Counsel Relating to Series 2020A Bonds
APPENDIX D-2—Form of Opinion of Bond Counsel Relating to Series 2020B Bonds
APPENDIX E -Form of Continuing Disclosure Certificate
25694/009/01626500.DOCv3
ii
OFFICIAL STATEMENT
Relating to
$ * $ *
COLLIER COUNTY,FLORIDA COLLIER COUNTY,FLORIDA
Special Obligation Revenue Bonds, Taxable Special Obligation Revenue Bonds,
Series 2020A Series 2020B
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 Revenue Bonds,Series 2020A (the"Series 2020A Bonds")and the Collier
County, Florida $ * Taxable Special Obligation Revenue Bonds, Series 2020B (the "Series
2020B Bonds" and together with the Series 2020A Bonds, the "Series 2020 Bonds"), in connection with the
sale of the Series 2020 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 2019, the
County had an estimated population of 376,086. Part of the Everglades National Park, the United States'
only subtropical national park,comprises a portion of the County. Principal industries within the County
include wholesale and retail trade,tourism,medical services,agriculture,forestry,fishing, cattle ranching
and construction. Additional general information with respect to the County is set forth in "APPENDIX
A—General Information Concerning Collier County,Florida"attached hereto.
The Series 2020 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. 2020-_adopted by the Board of County Commissioners of the County (the
"Board") on September 22, 2020, as it may be amended and supplemented from time to time (the
"Resolution"). See"APPENDIX B—Form of the Resolution"attached hereto.
The Series 2020A Bonds are being issued to provide funds to (i) finance the acquisition,
construction and equipping of various capital improvements within the County (as more particularly
described in"PLAN OF FINANCE—Series 2020A Project"below),(ii)refinance the County's outstanding
Revenue Note, Draw No. A-1-1 (JPMorgan Chase Bank) (the "Prior Indebtedness") (see "PLAN OF
FINANCE—Refinance Prior Indebtedness" below) and (iii) pay certain costs and expenses relating to the
issuance of the Series 2020A Bonds.
The Series 2020B Bonds are being issued to provide funds to (i) finance the purchase of certain
real property (see "PLAN OF FINANCE—Acquisition of Real Property below), and (ii) pay certain costs
and expenses relating to the issuance of the Series 2020B Bonds.
*Preliminary, subject to change.
25694/009/01626500.D OCv3
1
Pursuant to the Resolution, during such time as any of the Series 2020 Bonds are outstanding
under the Resolution or any amounts due under the Resolution or with respect to the Series 2020 Bonds
remain unpaid or outstanding, 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 2020 Bonds when due in the
manner and to the extent provided in the Resolution and described in"SECURITY FOR THE SERIES 2020
BONDS"herein and"APPENDIX B—Form of the Resolution"attached hereto.
THE SERIES 2020 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 2020 BOND SHALL HAVE THE RIGHT TO COMPEL THE EXERCISE OF
ANY AD VALOREM TAXING POWER TO PAY SUCH SERIES 2020 BOND, OR BE ENTITLED TO
PAYMENT OF SUCH SERIES 2020 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 2020 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 2020 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 2020 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 Crystal K.
Kinzel, Clerk of the Circuit Court and Comptroller of Collier County,3315 Tamiami Trail East, Suite 102,
Naples,Florida 34112-5324,Phone(239)252-6299.
PLAN OF FINANCE
Series 2020A Project
The "Series 2020A Project" is defined to include the financing acquisition, construction and
equipping of various capital improvements including but not limited to the following, as more
particularly described in the plans and specifications on file with the County and as the same may be
amended and/or supplemented from time to time. Proceeds of the Series 2020A Bonds may be used for
any portion of the following and/or for any other capital improvements authorized by the County.
Stormwater Capital Improvements:
• Golden Gate Outfall
25694/009/01626500.DOCv3
2
• West Goodlette
• Naples Park
• Freedom Park Bypass Ditch
• Weir Replacement
• Rock Weir and Dredge
• Solana Road Box Culvert
• Freedom Park Pump Station
• Lake Park Flowway
• Various Acquisitions and Easements
• Arrowhead STA
• Lake Trafford West End
• Fish Creek Westclox
• Palm River
• Aquatic Improvements
Aquatic Improvements:
• Various capital improvements at Sun & Fun, Golden Gate, Immokalee and Vineyards
aquatic facilities including,but not limited to, those related to pool restoration,electrical,
decking, ADA improvements, activity and competitive pool improvements, bathhouse,
slide tower,pump house,splash pads,flow rider and other improvements.
• Various capital improvements at Sugden Park, North Collier Regional Park and
Caxambas Regional Park including, but not limited to, those related to piers, stationary
docks,floating docks and boardwalks.
• Various capital improvements at Goodland and Port of Island Marinas including,but not
limited to, assessment and renovation of dock and reparation and replacement of
seawalls.
Refinance Prior Indebtedness
The County issued the Prior Indebtedness as interim indebtedness to finance various costs
related to the County's amateur sports complex. The Prior Indebtedness bears interest at a variable rate
and the County has determined it to be in its best interests to refinance such Prior Indebtedness with
longer term, fixed rate debt. The Prior Indebtedness will be refinanced on the date of issuance of the
Series 2020A Bonds at a redemption price of 100 percent of the principal amount thereof, plus accrued
interest to the redemption date.
Acquisition of Real Property
A portion of the proceeds of the Series 2020B Bonds will be used to purchase certain real property
within the County consisting of(1)approximately 967 acres of property known as the Hussey Property or
the HHH Ranch, located within the Rural Fringe Mixed Use District approximately three miles east of
Collier Boulevard and directly north of Alligator Alley, and (2) approximately 1,046 acres of property
known as the Camp Keais Property located within the Rural Lands Stewardship Area Overlay District
southeast of the intersection of Camp Keais Road and Oil Well Road approximately a mile east of Ave
Maria Boulevard, all as more particularly described in the plans and specifications on file with the
County,as the same may be amended and supplemented from time to time.
25694/009/01626500.DOCv3
3
DESCRIPTION OF THE SERIES 2020 BONDS
General
The Series 2020 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 2020 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 2020 Bonds is payable semiannually on each April 1 and
October 1, commencing April 1, 2021 (the "Interest Dates"). Interest payable on the Series 2020 Bonds on
any Interest Date shall be paid by check or draft of UMB Financial Corporation, Dallas, Texas, as Paying
Agent mailed to the holder at his or her address, as shown on the registration books of the County
maintained by UMB Financial Corporation, Dallas, Texas, as Registrar, as of the close of business on the
fifteenth (15th) day (whether or not a business day) of the calendar month next preceding the applicable
Interest Date (the "Record Date"); provided, however, at the request of any holder of Series 2020 Bonds,
interest payments may be made by bank wire transfer to the account designated by such holder.
Principal of, or Redemption Price, if applicable, on the Series 2020 Bonds is payable to the holder thereof
at the designated corporate office of the Paying Agent, except as otherwise described below under the
subheading,"--Book-Entry Only System."
The Series 2020 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
2020 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 THE DEPOSITORY TRUST COMPANY
("DTC") AND DTC'S BOOK-ENTRY ONLY SYSTEM HAS BEEN OBTAINED FROM SOURCES THAT
THE COUNTY BELIEVES TO BE RELIABLE. THE COUNTY TAKES NO RESPONSIBILITY FOR THE
ACCURACY THEREOF.
SO LONG AS CEDE & CO. IS THE REGISTERED OWNER OF THE SERIES 2020 BONDS, AS
NOMINEE OF DTC, CERTAIN REFERENCES IN THIS OFFICIAL STATEMENT TO THE SERIES 2020
BONDHOLDERS OR REGISTERED OWNERS OF THE SERIES 2020 BONDS SHALL MEAN CEDE &
CO. AND WILL NOT MEAN THE BENEFICIAL OWNERS OF THE SERIES 2020 BONDS. THE
DESCRIPTION WHICH FOLLOWS OF THE PROCEDURES AND RECORD KEEPING WITH RESPECT
TO BENEFICIAL OWNERSHIP INTERESTS IN THE SERIES 2020 BONDS, PAYMENT OF INTEREST
AND PRINCIPAL ON THE SERIES 2020 BONDS TO DIRECT PARTICIPANTS (AS HEREINAFTER
DEFINED) OR BENEFICIAL OWNERS OF THE SERIES 2020 BONDS, CONFIRMATION AND
TRANSFER OF BENEFICIAL OWNERSHIP INTERESTS IN THE SERIES 2020 BONDS, AND OTHER
RELATED TRANSACTIONS BY AND BETWEEN DTC, THE DIRECT PARTICIPANTS AND
BENEFICIAL OWNERS OF THE SERIES 2020 BONDS IS BASED SOLELY ON INFORMATION
FURNISHED BY DTC. ACCORDINGLY, THE COUNTY NEITHER MAKES NOR CAN MAKE ANY
REPRESENTATIONS CONCERNING THESE MATTERS.
25694/009/01626500.DOCv3
4
DTC will act as securities depository for the Series 2020 Bonds. The Series 2020 Bonds will be
issued as fully-registered securities 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 2020 Bond certificate will be issued for each maturity of each series of the Series 2020 Bonds in the
aggregate principal amount thereof,and will be deposited with DTC.
DTC, the world's largest securities 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 ("Direct Participants") deposit with
DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other
securities transactions in deposited securities, through electronic computerized book-entry transfers and
pledges between Direct Participants' accounts. This eliminates the need for physical movement of
securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers,
banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned
subsidiary of The Depository Trust& Clearing Corporation("DTCC"). DTCC is the holding company for
DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are
registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the
DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers,
banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship
with a Direct Participant,either directly or indirectly("Indirect Participants"). The Direct Participants and
the Indirect Participants are collectively referred to herein as the "DTC Participants." DTC has an S&P
Global Ratings ("S&P") rating of AA+. The DTC Rules applicable to its DTC Participants are on file with
the Securities and Exchange Commission (the "SEC"). More information about DTC can be found at
www.dtcc.cont.
Purchases of Series 2020 Bonds under the DTC system must be made by or through Direct
Participants, which will receive a credit for the Series 2020 Bonds on DTC's records. The ownership
interest of each actual purchaser of each Series 2020 Bond ("Beneficial Owner") is in turn to be recorded
on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation
from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations
providing details of the transaction, as well as periodic statements of their holdings, from the Direct or
Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of
ownership interests in the Series 2020 Bonds are to be accomplished by entries made on the books of
Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive
certificates representing their ownership interests in the Series 2020 Bonds,except in the event that use of
the book-entry system for the Series 2020 Bonds is discontinued.
To facilitate subsequent transfers, all Series 2020 Bonds deposited by Direct Participants with
DTC are registered in the name of DTC's partnership nominee,Cede&Co.,or such other name as may be
requested by an authorized representative of DTC. The deposit of the Series 2020 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 2020 Bonds;
DTC's records reflect only the identity of the Direct Participants to whose accounts such Series 2020
25694/009/01626500.DOCv3
5
Bonds are credited,which may or may not be the Beneficial Owners. The Direct and Indirect Participants
will remain responsible for keeping 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 among them, subject to any statutory or regulatory
requirements as may be in effect from time to time. Beneficial Owners of Series 2020 Bonds may wish to
take certain steps to augment the transmission to them of notices of significant events with respect to the
Series 2020 Bonds, such as redemptions, tenders, defaults, and proposed amendments to the security
documents. For example, Beneficial Owners of Series 2020 Bonds may wish to ascertain that the nominee
holding the Series 2020 Bonds for their benefit has agreed to obtain and transmit notices to Beneficial
Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the
Bond Registrar and request that copies of notices be provided directly to them.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to
the Series 2020 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 Series 2020 Bonds are credited on the record date (identified in a
listing attached to the Omnibus Proxy).
Payment of principal and interest on the Series 2020 Bonds will be made to Cede & Co., or such
other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit
Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the
County, on the payment date in accordance with their respective holdings shown on DTC's records.
Payments by DTC 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 DTC Participant and not of DTC or the
County, subject to any statutory or regulatory requirements as may be in effect from time to time.
Payment of principal and redemption proceeds to Cede & Co. (or such other nominee as may be
requested by an authorized representative of DTC) is the responsibility of the County, disbursement of
such payments to Direct Participants will be the responsibility of DTC, and disbursement of such
payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to the Series 2020 Bonds
at any time by giving reasonable notice to the County. Under such circumstances, in the event that a
successor depository is not obtained,the Series 2020 Bonds are required to be printed and delivered.
The County may decide to discontinue use of the system of book-entry-only transfers through
DTC (or a successor securities depository). In that event, Series 2020 Bonds certificates will be printed
and delivered to DTC.
Interchangeability,Negotiability and Transfer
So long as the Series 2020 Bonds are registered in the name of DTC or its nominee, the following
paragraphs relating to transfer and exchange of Series 2020 Bonds do not apply to the Series 2020 Bonds to the
extent of a conflict with the DTC book-entry system.
25694/009/01626500.DOCv3
6
Series 2020 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 2020 Bonds of the same Series and maturity of any other authorized denominations.
The Series 2020 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
2020 Bonds. So long as any of the Series 2020 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 2020 Bonds.
Each Series 2020 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 2020 Bond, the County shall issue, and
cause to be authenticated, in the name of the transferee a new Series 2020 Bond or Series 2020 Bonds of
the same Series, aggregate principal amount and maturity as the surrendered Series 2020 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 2020 Bond shall be registered upon the books of the County as the
absolute owner of such Series 2020 Bond, whether such Series 2020 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 2020 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 2020 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 2020
Bonds,forthwith(A) following the fifteenth (15th) day prior to an Interest Date for the Series 2020 Bonds;
(B) following the fifteenth (15th) day next preceding the date of first mailing of notice of redemption of
any Series 2020 Bonds; and (C) at any other time as reasonably requested by the Paying Agent of such
Series 2020 Bonds, shall certify and furnish to such Paying Agent the names, addresses and holdings of
Series 2020 Bondholders and any other relevant information reflected in the registration books. Any
Paying Agent of any fully registered Series 2020 Bond shall effect payment of interest on such Series 2020
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 2020 Bonds is exercised,
the County shall execute and deliver Series 2020 Bonds and the Registrar shall authenticate such Series
2020 Bonds in accordance with the provisions of the Resolution. Execution of Series 2020 Bonds by the
Chair and Clerk for purposes of exchanging, replacing or transferring Series 2020 Bonds may occur at the
time of the original delivery of the Series 2020 Bonds. All Series 2020 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 2020 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 2020 Bonds during the
fifteen(15) days next preceding an Interest Date on the Series 2020 Bonds or, in the case of any proposed
25694/009/01626500.DOCv3
7
redemption of the Series 2020 Bonds, then, for the Series 2020 Bonds subject to redemption, during the
fifteen (15) days next preceding the date of the first mailing of notice of such redemption and continuing
until such redemption date.
Series 2020 Bonds Mutilated,Destroyed, Stolen or Lost
So long as the Series 2020 Bonds are registered in the name of DTC or its nominee, the following
paragraphs relating to mutilated, destroyed, stolen or lost Series 2020 Bonds do not apply to the Series 2020 Bonds
to the extent of a conflict with the DTC book-entnj system.
In case any Series 2020 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 2020 Bond of
like tenor as the Series 2020 Bond so mutilated, destroyed, stolen or lost, in exchange and substitution for
such mutilated Series 2020 Bond upon surrender and cancellation of such mutilated Series 2020 Bond or
in lieu of and substitution for the Series 2020 Bond destroyed, stolen or lost, and upon the Series 2020
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
2020 Bonds so surrendered shall be cancelled by the Registrar. If any of the Series 2020 Bonds shall have
matured or be about to mature, instead of issuing a substitute Series 2020 Bond, the County may pay the
same or cause the Series 2020 Bond to be paid, upon being indemnified as aforesaid, and if such Series
2020 Bonds be lost,stolen or destroyed,without surrender thereof.
Any such duplicate Series 2020 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 2020 Bond be at any time found by anyone, and such duplicate Series 2020 Bond shall be entitled to
equal and proportionate benefits and rights to the same extent as all other Series 2020 Bonds issued
pursuant to the Resolution.
Optional Redemption
Series 2020A Bonds. The Series 2020A Bonds maturing on or after October 1, 2031 are
subject to redemption in whole or in part, at any time, on or after October 1, 2030, in such order of
maturities as may be determined by the County(less than all of a single maturity to be selected by lot), at
a redemption price equal to 100%of the principal amount of the Series 2020A Bonds to be redeemed plus
accrued interest to the date fixed for redemption,without premium.
Series 2020B Bonds. The Series 2020B Bonds are not subject to redemption prior to maturity.
Mandatory Redemption
The Series 2020A Bonds maturing on October 1, , are subject to mandatory sinking fund
redemption, prior to maturity in part, by lot, on October 1, , at a Redemption Price equal to the
principal amount of such Series 2020A Bonds or portions thereof to be redeemed, plus interest accrued
thereon to the date of redemption, on October 1 in the following years and in the following Amortization
Installments:
25694/009/01626500.DOCv3
8
Amortization
Year Installments
*
*Final Maturity
Selection of Series 2020A Bonds to be Redeemed
The Series 2020A Bonds shall be redeemed only in the principal amount of $5,000 each and
integral multiples thereof. The County shall, at least 45 days prior to the redemption date (unless a
shorter time period shall be satisfactory to the Registrar), notify the Registrar of such redemption date
and of the Series and principal amount of Series 2020A Bonds to be redeemed. For purposes of any
redemption of less than all of the Series 2020A Bonds of a single maturity of a Series, the particular Series
2020A Bonds or portions of Series 2020A Bonds to be redeemed shall be selected not more than 45 days
and not less than 35 days prior to the redemption date by the Registrar from the Series 2020A Bonds of
the maturity or maturities designated by the County by such method as the Registrar shall deem fair and
appropriate and which may provide for the selection for redemption of Series 2020A Bonds or portions of
Series 2020A Bonds in principal amounts of$5,000 and integral multiples thereof. Notwithstanding the
foregoing, in the event that less than the entire principal amount of a Term Bond is to be optionally
redeemed, the County shall determine how the principal amount of such refunded Term Bond is to be
allocated to the Amortization Installments for the Term Bond and shall notify the Paying Agent and
Registrar of such allocation.
If less than all of the Series 2020A Bonds of a single maturity of a Series are to be redeemed, the
Registrar shall promptly notify the County in writing of the Series 2020A Bonds or portions of Series
2020A Bonds selected for redemption and, in the case of any Series 2020A Bond selected for partial
redemption,the principal amount thereof to be redeemed.
Notice of Redemption
Notice of redemption, which shall specify the Series 2020A Bond or Series 2020A Bonds (or
portions thereof) to be redeemed and the date and place for redemption, shall be given by the Registrar
on behalf of the County, and (A) shall be filed with the Paying Agent of such Series 2020A Bonds, (B)
shall be mailed first class, postage prepaid, not less than 30 days prior to the redemption date to all
Holders of Series 2020A Bonds to be redeemed at their addresses as they appear on the registration books
kept by the Registrar as of the date of mailing of such notice, and (C) shall be mailed, certified mail,
postage prepaid,at least 35 days prior to the redemption date to the registered securities depositories and
two or more nationally recognized municipal bond information services as provided in the Resolution.
Failure to mail such notice to such depositories or services or the Holders of the Series 2020A Bonds to be
redeemed,or any defect therein, shall not affect the proceedings for redemption of Series 2020A Bonds as
to which no such failure or defect has occurred. Failure of any Holder to receive any notice mailed as
herein provided shall not affect the proceedings for redemption of such Holder's Series 2020A Bonds.
The County may provide that a redemption will be contingent upon the occurrence of certain
conditions and that if such conditions do not occur the notice of redemption will be rescinded, provided
notice of rescission shall be mailed in the manner described above to all affected Series 2020A
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Bondholders as soon as practicable but in no event later than three business days following knowledge by
the County and/or the Registrar that the condition for redemption has not or will not occur.
SECURITY FOR THE SERIES 2020 BONDS
General
During such time as any of the Series 2020 Bonds are outstanding under the Resolution or any
amounts due under the Resolution or with respect to the Series 2020 Bonds remain unpaid or
outstanding, 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 2020 Bonds when due, and (B)pay all required deposits to the 2020A 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 Funds"
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 ("MSTD")
Fund as shown in the Annual Audit. "Unincorporated Area Municipal Services Taxing District Fund"
means the "Unincorporated Area Municipal Services Taxing District ("MSTD") Fund" of the "Special
Revenue Funds"of the County 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 2020 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 2020
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
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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.
The County has covenanted and agreed to transfer to the Paying Agent for the Series 2020 Bonds,
solely from funds budgeted and appropriated as described in the Resolution, on or prior to the date
designated for payment of any principal of or interest on the Series 2020 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 2020 Bonds when due.
THE SERIES 2020 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 2020 BOND SHALL HAVE THE RIGHT TO COMPEL THE EXERCISE OF
ANY AD VALOREM TAXING POWER TO PAY SUCH SERIES 2020 BOND, OR BE ENTITLED TO
PAYMENT OF SUCH SERIES 2020 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 2020 Bonds
The County has determined not to fund a debt service reserve fund or account to further secure
the Series 2020 Bonds.
Anti-Dilution Test
During such time as any Series 2020 Bonds are Outstanding under the Resolution,the County has
agreed and covenanted with the Series 2020 Bondholders that upon the issuance of any subsequent Debt
(as hereinafter defined) (1) Non-Ad Valorem Revenues shall cover projected Maximum Annual Debt
Service on the Series 2020 Bonds and maximum annual debt service on Debt by at least 1.5x; and (2)
projected Maximum Annual Debt Service on the Series 2020 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 2020 Bonds or Debt. The calculations required by(1) and(2)above shall be
determined using the average of actual Non-Ad Valorem Revenues, General Fund Revenues, MSTD
Revenues and Impact Fee Proceeds for the prior two Fiscal Years based on the County's Annual Audits.
For purposes of the calculations required by clauses(1) and (2)above,Maximum Annual Debt Service on
the Series 2020 Bonds and maximum annual debt service on Debt shall be done on an aggregate basis
whereby the annual debt service for each is combined and the overall maximum is determined.
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,
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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 below, maximum annual debt
service on such Debt shall be determined assuming such Debt is amortized over 20 years from its original
date of issuance on an approximately level debt service basis. 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. With respect to debt service on any
Debt with respect to which the County elects to receive or is otherwise entitled to receive direct subsidy
payments from the United States Department of Treasury, when determining the interest on such Debt
for any particular interest payment date the amount of the corresponding subsidy payment shall be
deducted from the amount of interest which is due and payable with respect to such Debt on the interest
payment date,but only to the extent that the County reasonably believes that it will be in receipt of such
subsidy payment on or prior to such interest payment date.
"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
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 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 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 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.
Real Property Account
The County covenanted and agreed in the Resolution to establish a special account, the "Collier
County, Florida Taxable Special Obligation Revenue Bonds, Series 2020B Real Property Account" (the
"Real Property Account"), which shall be used only for costs related to the purchase of the Real Estate.
The County may establish separate subaccounts within the Real Property Account. Moneys in the Real
Property Account,until applied in payment of any item of the costs of the purchase of the Real Property
in the manner hereinafter provided, shall be subject to a lien and charge in favor of the Holders of the
Series 2020B Bonds and for the further security of such Holders.
There shall be paid into the Real Property Account the amounts required to be so paid by the
provisions of the Resolution, and there may be paid into the Real Property Account, at the option of the
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County, any moneys received for or in connection with the purchase of the Real Property by the County
from any other source.
Any moneys received by the County from the State or from the United States of America or any
agencies thereof for the purpose of financing part of the purchase of the Real Property shall be deposited
into the Real Property Account and used in the same manner as other Series 2020B Bond proceeds are
used therein; provided that separate accounts or subaccounts may be established in the Real Property
Account for moneys received pursuant to the provisions of the Resolution whenever required by Federal
or State law.
The County shall keep records of such disbursements and payments and shall retain all such
records for such period of time as required by applicable law. The County shall make available the
records at all reasonable times for inspection by any Holder of any of the Series 2020B Bonds or the agent
or representative of any Holder of any of the Series 2020B Bonds.
Notwithstanding any of the other provisions of the Resolution, to the extent that other moneys
are not available therefor,amounts in the 2020B Real Property Account shall be applied to the payment of
principal and interest on the Series 2020B Bonds.
The date of completion of the purchase of the Real Estate shall be documented by an Authorized
County Officer in the appropriate records of the County. Promptly after the date of such completion and
after paying or making provision for the payment of all unpaid items of the costs related to the purchase
of the Real Property, the County shall apply any balance of moneys remaining in an account in the Real
Property Account to pay debt service on the Series 2020B Bonds or shall be applied for any other capital
project or improvement of the County that is approved by the Board.
Construction Account
The County covenanted and agreed to establish in the Resolution, a special account, the Collier
County, Florida Special Obligation Revenue Bonds, Series 2020A Construction Account (the
"Construction Account"), which shall be used only for payment of costs of the Series 2020A Project. The
County may establish separate accounts within the Construction Account. Moneys in the Construction
Account, until applied in payment of any item of costs of the Series 2020A Project in the manner
hereinafter provided, shall be subject to a lien and charge in favor of the Holders of the Series 2020A
Bonds and for the further security of such Holders.
There shall be paid into the Construction Account the amounts required to be so paid by the
provisions of the Resolution and there may be paid into the Construction Account, at the option of the
County, any moneys received for or in connection with the Series 2020A Project by the County from any
other source.
The proceeds of insurance maintained pursuant to the Resolution against physical loss of or
damage to the Series 2020A Project, or of contractors' performance bonds with respect thereto pertaining
to the period of construction thereof,shall be deposited into the Construction Account.
Any moneys received by the County from the State or from the United States of America or any
agencies thereof for the purpose of financing part of the costs the Series 2020A Project shall be deposited
into the Construction Account and used in the same manner as other Series 2020A Bond proceeds are
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used therein; provided that separate accounts or subaccounts may be established in the Construction
Account for moneys received pursuant to the provisions of this paragraph whenever required by Federal
or State law.
The County covenants that the acquisition, construction and installation of the Series 2020A
Project will be completed without delay and in accordance with sound engineering practices. The
County shall make disbursements or payments from the Construction Account to pay costs of the Series
2020A Project. The County shall keep records of such disbursements and payments and shall retain all
such records for such period of time as required by applicable law. The County shall make available the
records at all reasonable times for inspection by any Holder of any of the Series 2020A Bonds or the agent
or representative of any Holder of any of the Series 2020A Bonds.
Notwithstanding any of the other provisions of the Resolution, to the extent that other moneys
are not available therefor, amounts in the Construction Account shall be applied to the payment of
principal and interest on the Series 2020A Bonds,when due.
The date of completion of the acquisition, construction and equipping of the Series 2020A Project
shall be documented by an Authorized Issuer Officer in the appropriate records of the County. Promptly
after the date of such completion and after paying or making provision for the payment of all unpaid
items of the costs of such Series 2020A Project, the County shall apply any balance of moneys remaining
in the Construction Account to pay debt service on the Series 2020A Bonds or shall be applied for any
other capital project or improvement of the County that is approved by the Board.
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 2020 Bonds and the County is not obligated to budget
and appropriate ad valorem tax revenues for the payment of the Series 2020 Bonds.
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 2020 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 2020 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 2020 Bonds when due in the manner and to the extent
described in the Resolution. The holders of the Series 2020 Bonds do not have a lien on any specific Non-
Ad 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.
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The County is the recipient of certain non-ad valorem revenue sources, including but not limited
to, half-cent sales tax revenues and/or certain revenue sharing revenues that have been negatively
impacted by the effects of COVID-19. Travel restrictions and shelter in place orders have resulted in, and
will likely continue to result in, decreased tourism, travel and consumer spending, as more particularly
described below under"RISK FACTORS."
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
2020 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 County's infrastructure sales surtax is not described herein and is not available to pay debt
service on the Series 2020 Bonds because it is not deposited into the funds described in the definition of
Non-Ad Valorem Revenues. See"SECURITY FOR THE SERIES 2020 BONDS—General" and APPENDIX
B—Form of the Resolution" attached hereto.
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, 2020 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, 2020 is $0.8069 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.
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
Chapter 202, Florida Statutes (the "CSTA") authorizes counties in Florida to impose a local
communications services tax on the sale of communications services as defined in Section 202.11, Florida
Statutes. 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 at
a rate of 2.10%.
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The local communications services tax applies to the purchase of "communications services"
which originated or terminated within unincorporated Collier County,with certain exemptions described
below. "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.
While 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, providers now have the
ability to exclude such services from the tax if they can be reasonably identified from the selling dealer's
books and records kept in the regular course of business. The dealer may support the allocation of
charges with books and records kept in the regular course of business covering the dealer's entire service
area,including territories outside of Florida.
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 home for the aged or 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 include, but are 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
Internal Revenue Code of 1986, as amended (the "Code"), are exempt from the local 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 local communications services tax,
such provider is entitled to a credit against the amount of such local 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. However, the County does not impose any such fees or
charges on communications services providers.
Under the CSTA, local governments must work with the Federal Department of Revenue
("FDOR") to properly identify service addresses to each municipality and county. If a jurisdiction fails to
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provide the FDOR with accurate service address information, the local government risks losing tax
proceeds that it should properly 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 local 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 data base that is either supplied or certified by the FDOR). The communications
services providers remit the remaining proceeds to the FDOR for deposit into the CST Trust Fund. The
FDOR then makes monthly contributions from the CST Trust Fund to the appropriate local governments
after deducting up to 1%of the total revenues generated as an administrative fee.
The proceeds of the local communications services tax, less the FDOR's cost of administration
which may not exceed 1%of the total tax generated, are deposited in the Local Communications Services
Tax Clearing Trust Fund (the "CST Trust Fund") and distributed monthly to the appropriate jurisdiction.
The local communications services tax revenues received by the County are deposited into the County
General Fund and may be used for any public purpose. The revenues that are received by the County
from such communications services tax which derive from the CST Trust Fund created with the FDOR
pursuant to Section 202.193, Florida Statutes, may be pledged for the repayment of current or future
bonded indebtedness.
The amount of local 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.
The amount of the local communications services tax revenues collected within the County may
be adversely affected by incorporation or annexation. Such incorporation or annexation would decrease
the number of addresses contained within 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
The half-cent sales tax revenues consist of the amount of the Local Government Half-Cent Sales
Tax distributed to the County by the State of Florida (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"Half-Cent Sales Tax Revenues").
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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 of Florida 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 General Fund and the Ecosystem Management and Restoration Trust Fund. The proportion of
sales tax revenues deposited in the Half-Cent Sales Tax Trust Fund(the"Half-Cent Sales Tax revenues")is
8.814% of all state sales tax remitted to the State by a sales tax dealer located within a particular county.
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 general rate of sales tax in the State is currently 6%.
As of October 1, 2001, the Half-Cent Sales Tax Trust Fund began receiving a portion of location
communications services tax revenues 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
local 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 met the Eligibility Requirements:
(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
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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 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 Half-Cent Sales Tax 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 = population county population
Half-Cent Sales Tax total 2/3 of the
Revenues) 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
25694/009/01626500.D OCv3
19
volume of taxable sales within the County, (iii) legislative changes relating to the sales tax, which may
include changes in the scope of taxable sales, changes in the tax rate and changes in amounts deposited
into the Trust Fund, and (iv) other factors which may be beyond the control of the County or the Series
2020 Bondholders,including but not limited to public health emergencies, the potential for increased use
of electronic commerce and other internet-related sales activity that could have a material adverse impact
upon the amounts collected by the State, deposited into the Trust Fund and then distributed to the
County.
In July, 2020, the County received a distribution of half-cent sales tax revenues from the State
relating to May, 2020 collections within the County. The amount of half-cent sales tax revenues received
by the County for the nine month period ending July, 2020 was $38,476,653 (unaudited), which when
compared to the same nine month period for the fiscal year ended September 30, 2019 ($39,906,686)
reflects an approximate 3.6%decrease in collections. The table below reflects month by month collections
and percentage increase/decrease for that comparison period.
Monthly Half- Monthly Half-
Cent Sales Cent Sales Percent
Month(1) Tax Collections Month(1) Tax Collections Increase/Decrease
October 2018 $2,960,344 October 2019 $3,123,390 5.51%
November 2018 3,194,874 November 2019 3,290,606 3.00
December 2018 3,654,841 December 2019 3,904,484 6.83
January 2019 4,027,296 January 2020 4,342,422 7.82
February 2019 4,794,622 February 2020 5,040,603 5.13
March 2019 4,389,458 March 2020 4,828,185 10.00
April 2019 4,443,076 April 2020 4,670,739 5.12
May 2019 4,855,213 May 2020 3,654,115 (4.74)
June 2019 4,115,316 June 2020 2,468,716 (40.01)
July 2019 3,471,646 July 2020 3,153,393 (9.17)
(1) There is a two month time lag between local economic collection activity and the distribution
from the State. Therefore,for example, revenues reflected in the table above as collections for the
month of October were actually collected locally in August and distributed to the County in
October.
See "RISK FACTORS" herein for more information about the impacts of COVID-19 on the
County and its receipt of half-cent sales tax revenues because of reduced retail sales.
In addition, the amounts deposited in the Trust Fund which are to be distributed to the County
will be affected by changes in the relative populations of the unincorporated and incorporated areas
within the County. Such relative populations are subject to change through normal increases and
decreases in population within the existing unincorporated and incorporated areas of the County and are
also subject to change by the annexation of previously unincorporated areas of the County by the
municipalities within the County or incorporations. Such annexations or incorporations would not only
increase the population of the incorporated areas but also would, in equal amount, decrease the
population of the unincorporated areas. Currently, the County is not aware of any potential
incorporations or annexations in the County.
25694/009/01626500.DOCv3
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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 satisfied the Eligibility Requirements.
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 FDOR.
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 revenues, 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 future years, the County must comply
with certain eligibility and reporting requirements. If the County fails to comply with such requirements,
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 FDOR as to its disbursement,if any.
See "RISK FACTORS" herein for more information about the impacts of COVID-19 on the
County and its receipt of State Revenue Sharing funds.
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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.2001-13,as amended,such
impact fees include: County-Wide Library Impact Fees, Emergency Medical Services Impact Fees,
Government Facilities Impact Fees, Law Enforcement Impact Fees, Correctional Facilities Impact Fees,
Road Impact Fees, Fire Impact Fees and Parks 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, Law Enforcement Impact Fees, Correctional Facilities Impact Fees,
Road Impact Fees, Fire Impact Fees and Parks 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.
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 used to pay debt service which relates to library facilities expansion. Under
Florida law,investment earnings with respect to impact fees are subject to the same restrictions on use as
the impact fees themselves. Impact fee 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.
The 2020A Project does not consist of growth related improvements and additions or law
enforcement, library, emergency medical services, parks, road or fire growth related improvement
additions. Therefore, Government Facilities Impact Fees, Correctional Facilities Impact Fees, Law
Enforcement Impact Fees, Library Impact Fees, Emergency Medical Services Impact Fees, Road Impact
Fees,Park Impact Fees and Fire Impact Fees are not legally available to pay any debt service on the Series
2020A Bonds.
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.
25694/009/01626500.DOCv3
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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 slowed, the
amount of interest received by the County has been 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, 2015 through and including September 30, 2019 (excludes
non-ad valorem revenues of the County which are not legally available to pay debt service on the Series
2020 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 2020 Bonds. Such table is not intended to represent
revenues of the County which would necessarily be available to pay debt service on the Series 2020
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 2020 Bonds taking into
account general government expenditures. Certain categories may cease to exist altogether and new
sources may come about from time to time.
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25694/009/01626500.DOCv3
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COLLIER COUNTY,FLORIDA
HISTORICAL NON-AD VALOREM REVENUES IN GENERAL FUND,UNINCORPORATED AREA
MUNICIPAL SERVICES TAXING DISTRICT FUND AND CAPITAL PROJECTS FUNDS
Fiscal Year Ended September 30
2015 2016 2017 2018 2019
Taxes:
Local Communications Services Tax(1) $4,855,279 $4,702,747 $5,84,038 $4,498,036 $4,341,973
Occupational Licenses Revenues(2) 579,168 596,358 561,031 629,477 638,908
Licenses and Permits:
Other 557,049 349,792 309,013 250,898 473,265
Impact Fees13:
Library Impact Fees 869,236 1,002,395 917,541 1,053,844 1,108,774
Emergency Medical Services Impact Fees 344,534 451,547 370,960 464,357 528,858
Law Enforcement Impact Fees 1,260,634 1,647,064 1,403,537 1,842,830 2,160,463
Governmental Facilities Impact Fees 2,349,191 2,955,204 2,554,613 3,097,079 3,633,274
Road Impact Fees 11,014,501 18,632,706 19,273,674 26,579,266 28,305,759
Fire Impact Fees 5,186 5,562 6,985 8,490 11,498
Correctional Facilities Impact Fees 1,471,250 1,798,861 1,518,046 1,807,511 1,947,643
Parks Impact Fees 8,098,940 9,109,610 9,053,250 10,819,874 11,948,088
Intergovernmental:
Local Government Half-Cent Sales Tax 38,572,787 40,658,974 41,798,943 44,092,859 46,354,649
State Revenue Sharing 10,240,837 10,680,910 11,278,037 11,824,988 12,488,536
Other0) 2,321,195 2,377,462 2,223,322 8,306,814 3,242,232
Charges for services:
General Government 9,490,507 9,959,102 10,191,960 11,151,936 12,365,294
Public Safety 2,264,635 2,567,592 2,441,630 2,315,534 2,221,423
Physical Environment 7,872 1,281 3,000 4,266 -
Transportation 33,018 893 4,156 9,780 -
Economic Environment - 23,450 700 4,200 52,438
Human Services 134,901 124,083 131,944 122,397 154,004
Culture and Recreation 7,537,614 7,453,961 7,257,684 6,905,334 6,743,929
Fines and Forfeitures 811,029 713,414 552,166 704,947 758,030
Interest Income 1,068,000 1,278,102 1,515,178 2,442,327 4,447,876
Miscellaneous Revenue(6) 4,356,721 3,760,650 3,017,062 3,351,450 4,103,662
Payment in Lieu of Taxesm
County Water and Sewer 5,203,400 5,351,100 6,093,700 6,482,800 7,743,300
Solid Waste System 210,600 220,600 295,500 320,300 363,000
Total sources of Non-Ad Valorem Revenues 113,658,084 126,423,420 127,857,670 149,091,594 156,136,876
Less(3)
Library Impact Fees 869,236 1,002,395 917,541 1,053,844 1,108,774
Emergency Medical Services Impact Fees 344,534 451,547 370,960 464,357 528,858
Law Enforcement Impact Fees 1,260,634 1,647,064 1,403,537 1,842,830 2,160,463
Governmental Facilities Impact Fees 2,349,191 2,955,204 2,554,613 3,097,079 3,633,274
Road Impact Fees 11,014,501 18,632,706 19,273,674 26,579,266 28,305,759
Fire Impact Fees 5,186 5,562 6,985 8,490 11,498
Correctional Facilities Impact Fees 1,471,250 1,798,861 1,518,046 1,807,511 1,947,643
Parks Impact Fees 8,098,940 9,109,610 9,053,250 10,819,874 11,948,088
Total Legally Available
Non-Ad Valorem Revenues $88,244,612 $90,820,471 $98,759,064 $103,418,343 $106,492,519
[Footnotes continued on following page]
25694/009/01626500.D OCv3
24
(1) The use of impact fees is limited under Florida law to(1)payment for expansion facilities or(2)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
used to pay debt service which relates to library facilities expansion. The 2020A Project does not consist of
growth related improvements and additions or law enforcement, library, emergency medical services,
parks, road or fire growth related improvement additions. Therefore, Government Facilities Impact Fees,
Correctional Facilities Impact Fees,Law Enforcement Impact Fees,Library Impact Fees,Emergency Medical
Services Impact Fees, Road Impact Fees, Park Impact Fees and Fire Impact Fees are not legally available to
pay any debt service on the Series 2020A Bonds. Under Florida law, investment earnings with respect to
impact fees are subject to the same restrictions on use as the impact fees 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.
(2) Includes Alcoholic Beverage Licenses, Child Support Enforcement Program Grants, Insurance Agents
License Fees, Emergency Management Assistance Federal Grants, FEMA Reimbursements, Oil/Gas
Severance Tax,Federal Payment in Lieu of Taxes and Seminole Compact Revenue.
(3) Includes Radio Tower Leases, Facilities Leases, Scrap Sales, Cemetery Lot Fees, Scrap Sales, Insurance
Refunds and Private Contributions.
(4) Generally accepted accounting principles,as applied to governmental accounting,require that payments in
lieu of taxes that are reasonably equivalent in value to services received should be booked as interfund
transfers. Therefore, this revenue source is not separately stated in the County's audited financial
statements.
Source: Clerk of Courts Finance Department.
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25694/009/01626500.DOCv3
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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,infrastructure sales surtax revenues and net revenues of
the water and sewer enterprise fund, neither of which are legally available to pay debt service on the
Series 2020 Bonds). Such indebtedness is summarized below:
Maximum
Annual Debt
Amount Service on a Per
Description Source of Security Outstanding(1) Final Maturity Issue Basis(2)
Special Obligation Revenue Covenant to Budget and $2,165,000 07/1/2034
Bonds,Series 2010 Appropriate Non-Ad
Valorem Revenues
Special Obligation Refunding Covenant to Budget and $7,620,000 10/1/2021
Revenue Bonds,Series 2010B Appropriate Non-Ad
Valorem Revenues
Special Obligation Refunding Covenant to Budget and $52,640,000 10/1/2029
Revenue Bonds,Series 2011 Appropriate Non-Ad
Valorem Revenues
Special Obligation Refunding Covenant to Budget and $73,805,000 10/1/2035
Revenue Bonds, Series 2013 Appropriate Non-Ad
Valorem Revenues
Special Obligation Refunding Covenant to Budget and $43,345,000 7/1/2034
Revenue Note,Series 2017 Appropriate Non-Ad
Valorem Revenues
Revenue Note,Draw No.A-1- Legally Available Non- $11,500,000 6/6/2023
1 (JPMorgan Chase Bank)(3) Ad Valorem Revenues
TOTAL: $191,075,000
(1) The amount outstanding on each bond issue is calculated as of ,2020.
(2) Maximum Annual Debt Service is calculated by fiscal year,on a per issue basis.
(3) The County expects to refinance this note with proceeds of the Series 2020A Bonds.
Since there is no lien on the Non-Ad Valorem Revenues in favor of the Holders of the Series 2020
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 2020 Bonds.
25694/009/01626500.DOCv3
26
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:
1. Prior to October 15t,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. Clifton Larson
Allen LLP performed the audit for the fiscal year ended September 30, 2019. The audited financial
statements for the fiscal year ended September 30,2019 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 2020 Bonds which means that the
County cannot be compelled to levy ad valorem taxes in order to pay debt service on the Series 2020
25694/009/01626500.DOCv3
27
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 2020 Bonds is payable as some General Fund Revenues and MSTD Revenues are not legally
available to pay debt service on the Series 2020 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 2020 Bonds are not payable from ad valorem taxation, approximately 76.88%
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
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 30,2015 through
and including September 30, 2019 (neither Impact Fee Proceeds or associated expenditures are included
in such chart):
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25694/009/01626500.DOCv3
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COLLIER COUNTY,FLORIDA
COMBINED GENERAL FUND AND MSTD FUND REVENUES,
EXPENDITURES AND FUND BALANCE(1)
2015 2016 2017 2018 2019
Revenues:
Taxes $254,153,577 $274,627,097 $305,861,198 $330,594,761 $348,897,729
Licenses and Permits 557,049 349,792 309,013 250,898 473,266
Intergovernmental 51,134,819 53,717,345 55,300,302 64,224,661 62,085,417
Charges for Services 19,468,549 20,130,364 20,031,075 20,513,447 21,537,087
Fines and Forfeitures 811,029 713,415 552,166 704,947 758,030
Interest Income 1,067,999 1,278,101 1,515,179 2,442,327 4,447,876
Change in Fair Value of Investments 181,061 (36,101) (550,718) (492,695) 1,362,148
Special Assessments - - - - -
Miscellaneous Revenue 4,356,721 3,760,648 3,017,062 3,351,450 4,103,662
Total Revenues 331,730,804 354,540,661 386,035,277 421,589,796 446,860,090
Expenditures:
Current: 59,586,773 65,098,125 67,329,515 72,206,661 76,735,270
General Government 145,005,936 152,083,151 169,785,297 171,233,898 183,272,788
Public Safety 1,372,395 1,566,488 1,481,610 2,282,430 1,311,386
Physical Environment 7,422,016 7,241,238 7,436,312 10,381,993 11,155,892
Transportation 1,172,385 1,707,628 2,130,759 2,341,735 1,979,680
Economic Environment 10,001,930 10,896,535 11,395,607 11,844,305 12,562,671
Human Services 25,323,671 27,643,572 27,757,997 29,018,760 29,950,458
Culture and Recreation 570,323 617,712 633,509 63,185 63,185
Capital Outlay 9,788,843 12,203,126 10,984,224 18,191,599 17,419,761
Total Expenditures 260,244,272 279,057,575 298,934,830 317,564,566 334,451,091
Excess of Revenues Over Expenditures 71,486,532 75,483,086 87,100,447 104,025,230 112,408,999
Other Financing Sources(Uses):
Capital Leases 1,914,480 - - - -
Transfers In 11,711,201 11,917,795 12,786,264 14,038,633 15,586,233
Transfers Out (102,456,200) (88,137,682) (92,645,058) (97,310,664) (101,275,273)
Total Other Financing Sources(Uses) (88,830,519) (76,219,887) (79,858,794) (83,272,031) (85,689,040)
Net Change in Fund Balances (17,343,987) (736,801) 7,241,653 20,753,199 26,719,959
Beginning Fund Balance 86,295,083 68,951,096 68,214,295 75,455,948 96,209,147
Ending Fund Balance $68,951,096 $68,214,295 $75,455,948 $•6,209,147 $119,734,231
(1) Does not include Impact Fees since they are deposited into the Capital Projects Funds, which are not
included in the presentation above.
Source: Clerk of Courts Finance Department.
25694/009/01626500.DOCv3
29
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 2020 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 2020 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 2020 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 2020 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 2020 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.
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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.
RISK FACTORS
The future financial condition of the County could be affected adversely by, among other things,
public health emergencies, legislation, environmental and other regulatory actions, changes in demand
for services, economic conditions, demographic changes, hurricanes, droughts and litigation. In
particular,some of the possible changes in the future may include,but not be limited to,the following:
1. The County's financial results could be harmed by a national or localized outbreak of a
highly contagious,epidemic or pandemic disease. Specifically,there can be no assurances that the spread
of the novel strain of coronavirus called COVID-19, or other highly contagious or epidemic or pandemic
diseases, will not adversely impact any of the County's finances and/or its financial position, including
revenues, expenses and liquidity. The impact of COVID-19 is expected to continue to have a negative
financial impact on local, state and national economies, the long-term severity of which is unknown at
this time, in a manner that could adversely affect the amount of certain Non-Ad Valorem Revenue
sources received by the County (such as half-cent sales tax revenues and/or certain revenue sharing
revenues) as well as the amount of property taxes received by the County. See "GENERAL
INFORMATION REGARDING NON-AD VALOREM REVENUES"herein for more information.
The outbreak of COVID-19, a respiratory virus which was first reported in China, has since
spread to other countries, including the United States, and is considered a Public Health Emergency of
International Concern by the World Health Organization. The United States State Department and the
Center for Disease Control, as well as other governmental authorities, nations and airlines have issued
travel restrictions and warnings for a number of countries in Asia and Europe. The spread of COVID-19
has led to quarantine and other "social distancing" measures throughout the United States. These
measures have included recommendations and warnings to limit non-essential travel and promote
telecommuting. The State and local governments within the State, including the County, are heavily
reliant upon tourism, which may be negatively impacted by travel restrictions and the spread of COVID-
19. As a result of the spread of COVID-19, the Governor of Florida declared a state of emergency on
March 9, 2020 (which was extended on July 7, 2020 for an additional 60 days). On March 16, 2020, the
Board declared a state of emergency within the County. On March 27, 2020, the Governor issued an
executive order suspending vacation rentals operations which prohibited new reservations or the
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acceptance of new guests for check-in until May 21, 2020 when such restrictions were lifted. On April 1,
2020, the Governor issued a mandatory "safer at home" order for the entire State, which was effective
April 3, 2020 through April 30, 2020. On April 29, 2020, the Governor announced the first phase of
reopening businesses which began on May 4, 2020 and allowed for the reopening of certain businesses
(restaurants, retail stores, museums and libraries). On May 15, 2020, the Governor announced an
expanded phase 1 opening which allowed for gyms, fitness centers and studios to open and allowed
restaurants and retail businesses to increase seating/occupancy capacity from 25% to 50%. On May 22,
2020,the Governor announced that youth activities,including summer camps and organized sports,were
allowed to reopen. On June 3, 2020, the Governor announced most of the State would enter phase 2 of
reopening effective June 5, 2020 which allowed bars and pubs to operate at a seated capacity of 50%
inside and full seated capacity outside,movie theaters,bowling alleys and concert halls may open at 50%
capacity, pari-mutual facilities will reopen with strict health and safety guidelines, and restaurants, retail
and gyms continue to operate at 50% capacity; provided, however, that restaurants are able to serve at
bars with chairs properly socially distanced. On June 26, 2020, as a result of spikes in COVID-19 cases,
the Department of Business and Professional Regulation ordered all businesses that derive more than
50% of their revenue from alcohol sales must stop selling alcohol to customers on their premises.
Although, bars can still sell alcohol in to-go containers and restaurants that do not rely on alcohol sales
for a majority of their revenue can continue to serve alcohol to seated customers on site. On July 21,2020,
the Board issued an Emergency/Executive Order which, among other things, mandates individuals wear
face coverings in public under certain circumstances(which expires on October 22,2020 unless otherwise
extended).
The County has received funds from the Coronavirus Aid, Relief, and Economic Security Act
from the State in the amount of approximately $16.8 million, with a total award of $67.2 million.
Additionally, the County was awarded approximately$9.5 million by the Federal Transit Administration
for programs related to COVID-19.
While the effects of COVID-19 may be temporary, it has altered the behavior of businesses and
people in a manner resulting in negative impacts on global and local economies. The continued spread of
COVID-19,and measures taken to prevent or reduce it, are anticipated to adversely impact state,national
and global economic activities and, accordingly, adversely impact the financial condition and
performance of the State and the County, and the extent of that impact has been, and could continue to
be,material. Recently, stock markets in the U.S. and globally have seen significant volatility and declines
that have been attributed, at least in part, to the COVID-19 concerns. While the long-term impact on the
County is uncertain at this time, the County is monitoring the impact of COVID-19 and will address such
impacts, as necessary. See "GENERAL INFORMATION REGARDING NON-AD VALOREM
REVENUES" and "RATINGS"herein, " APPENDIX C—Collier County Comprehensive Annual Financial
Report For Fiscal Year Ended September 30,2019"attached hereto.
2. The State is naturally susceptible to the effects of extreme weather events and natural
disasters including floods, droughts, and hurricanes, which could result in negative economic impacts on
coastal communities such as the County. Such effects can be exacerbated by change in climate. The
occurrence of such extreme weather events could damage the local infrastructure that provides essential
services to the County. The economic impacts resulting from such extreme weather events could include
a loss of property values, a decline in revenue base, and escalated recovery costs. No assurance can be
given as to whether future extreme weather events will occur that could materially impair the financial
condition of the County. In order to address the ongoing challenges related to climate change, extreme
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weather events, sea level rise, etc., Collier County is leading or participating in multiple efforts including,
but not limited to:
• Partnership in ongoing NOAA study, specific to Collier County, providing scenario
modeling and end-user decision tools related to sea-level rise and storm surge and study
of potential natural features that may serve as enhanced protective features against the
same threats.
• Partnership with the Army Corp. of Engineers on a long-term Coastal Resilience
Program for Collier County, including beaches, dunes, back bays, etc. with
recommendations on both natural and engineered protective solutions.
• Partnership with the South Florida Water Management District to model and survey
critical natural areas downstream of the managed stormwater systems to understand
functionality, challenges, need for maintenance, etc. as these areas serve as critical
stormwater conveyances and outfalls.
• Development of a Stormwater structure automation program, starting with stormwater
structures at the freshwater/saltwater interface in order to provide better flood protection
and manage stormwater in combination with storm events, higher than average tides,
etc.
• Installation of additional infrastructure components to address tidal backflow in low-
lying areas.
• Enhanced funding for the maintenance of critical stormwater infrastructure.
• Update of the adopted rate of rise(seal level rise) calculation used for planning purposes
through the Floodplain Management Plan.
• Accommodations for sea level rise projections in all capital project planning and design.
• Development of plan for completion of Vulnerability Assessment tasks and moving
forward with Adaptation Planning.
3. The County, like many other governmental entities,relies on a technology environment to
conduct its operations. As such, it may face multiple cybersecurity threats including but not limited to,
hacking, viruses, malware and other attacks on computer or other sensitive digital systems and networks.
In order to protect data the County currently has$10 million of cyber liability coverage that provides for
recoveries in the event of a data breach,virus or other cyberattack. Other coverages included within the
policy are security breach notification and remediation expenses, crisis management services expenses,
extortion expenses, computer fraud, reputational harm and social engineering. In addition, the Collier
County Clerk of the Circuit Court and Comptrollers' ("Clerk") agency has $5 million of cyber liability
coverage with the same lines of coverage that the County maintains. Both the County and the Clerk
agencies require staff training in the area of cyberattack and data security in order to maintain employee
access to their respective networks.
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RETIREMENT PLAN AND OTHER POST EMPLOYMENT BENEFITS
Florida Retirement System
The information relating to the Florida Retirement System ("FRS") contained herein has been obtained
from the FRS Annual Reports available at www.dms.myflorida.com and the Florida Comprehensive Annual
Financial Reports available at www.myfloridacfo.com/aadir/statewide._financial_reporting. No representation is
made by the County as to the accuracy or adequacy of such information or that there has not been any material
adverse change in such information subsequent to the date of such information.
General Information. Substantially all full-time employees of the County are eligible to
participate in the FRS. The FRS is a cost-sharing multiple-employer public-employee retirement system
with two primary plans — the FRS defined benefit pension plan (the "FRS Pension Plan") and the FRS
defined contribution plan(the"FRS Investment Plan"). The FRS Pension Plan was created in Chapter 121,
Florida Statutes,to provide a defined benefit pension plan for participating public employees.
Florida Retirement System Pension Plan
Membership. FRS membership is compulsory for all employees filling a regularly established
position in a state agency, county agency, state university, state community college, or district school
board. Participation by cities,municipalities, special districts, charter schools,and metropolitan planning
organizations, although optional, is generally irrevocable after election to participate is made. Members
hired into certain positions may be eligible to withdraw from the FRS altogether or elect to participate in
the non-integrated optional retirement programs in lieu of the FRS except faculty of a medical college in a
state university who must participate in the State University System Optional Retirement Program.
There are five general classes of membership,as follows:
• Regular Class-Members of the FRS who do not qualify for membership in the other classes.
• Senior Management Service Class (SMSC) - Members in senior management level positions in
state and local governments as well as assistant state attorneys,assistant statewide prosecutors, assistant
public defenders, assistant attorneys general, deputy court administrators, assistant capital collateral
representatives,and judges of compensation claims.
• Special Risk Class - Members who are employed as law enforcement officers, firefighters,
firefighter trainers, fire prevention officers, state fixed-wing pilots for aerial firefighting surveillance,
correctional officers, emergency medical technicians, paramedics, community-based correctional
probation officers, youth custody officers (from July 1, 2001 through June 30, 2014), certain health-care
related positions within state forensic or correctional facilities, or specified forensic employees of a
medical examiner's office or a law enforcement agency,and meet the criteria to qualify for this class.
• Special Risk Administrative Support Class - Former Special Risk Class members who are
transferred or reassigned to nonspecial risk law enforcement, firefighting, emergency medical care, or
correctional administrative support positions within an FRS special risk-employing agency.
• Elected Officers' Class (EOC) - Members who are elected state and county officers and the
elected officers of cities and special districts that choose to place their elected officials in this class.
Members of the EOC may elect to withdraw from the FRS or participate in the SMSC in lieu of the EOC.
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Beginning July 1, 2001 through June 30, 2011, the FRS Pension Plan provided for vesting of
benefits after six years of creditable service for members initially enrolled during this period. Members
not actively working in a position covered by the FRS Pension Plan on July 1, 2001, must return to
covered employment for up to one work year to be eligible to vest with less service than was required
under the law in effect before July 1, 2001. Members initially enrolled on or after July 1, 2001 through
June 30, 2011, vest after six years of service. Members initially enrolled on or after July 1, 2011, vest after
eight years of creditable service. Members are eligible for normal retirement when they have met the
requirements listed below. Early retirement may be taken any time after vesting within 20 years of
normal retirement age; however, there is a 5% benefit reduction for each year prior to the normal
retirement age.
• Regular Class, SMSC, and EOC Members -For members initially enrolled in the FRS Pension
Plan before July 1, 2011, six or more years of creditable service and age 62, or the age after completing
six years of creditable service if after age 62. Thirty years of creditable service regardless of age before
age 62. For members initially enrolled in the FRS Pension Plan on or after July 1, 2011, eight or more
years of creditable service and age 65, or the age after completing eight years of creditable service if
after age 65. Thirty-three years of creditable service regardless of age before age 65.
• Special Risk Class and Special Risk Administrative Support Class Members-For members initially
enrolled in the FRS Pension Plan before July 1, 2011, six or more years of Special Risk Class service and
age 55, or the age after completing six years of Special Risk Class service if after age 55. Twenty-five
years of special risk service regardless of age before age 55. A total of 25 years of service including
special risk service and up to four years of active duty wartime service and age 52. Without six years of
Special Risk Class service, members of the Special Risk Administrative Support Class must meet the
requirements of the Regular Class. For members initially enrolled in the FRS Pension Plan on or after
July 1, 2011, eight or more years of Special Risk Class service and age 60, or the age after completing
eight years of Special Risk Class service if after age 60. Thirty years of special risk service regardless of
age before age 60. Without eight years of Special Risk Class service, members of the Special Risk
Administrative Support Class must meet the requirements of the Regular Class.
Benefits. Benefits under the FRS Pension Plan are computed on the basis of age, average final
compensation, creditable years of service, and accrual value by membership class. Members are also
eligible for in-line-of-duty or regular disability and survivors' benefits. Pension benefits of retirees and
annuitants are increased each July 1 by a cost-of-living adjustment. If the member is initially enrolled in
the FRS Pension Plan before July 1,2011,and all service credit was accrued before July 1, 2011, the annual
cost-of-living adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has
service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The
annual cost-of-living adjustment is a proportion of 3% determined by dividing the sum of the pre-July
2011 service credit by the total service credit at retirement multiplied by 3%. FRS Pension Plan members
initially enrolled on or after July 1,2011,will not have a cost-of-living adjustment after retirement.
The Deferred Retirement Option Program ("DROP") became effective July 1, 1998, subject to
provisions of Section 121.091(13), Florida Statutes. FRS Pension Plan members who reach normal
retirement are eligible to defer receipt of monthly benefit payments while continuing employment with
an FRS employer. An employee may participate in the DROP for a maximum of 60 months. Authorized
instructional personnel employed with a district school board, the Florida School for the Deaf and the
Blind or a developmental research school of a state university may be allowed to extend their DROP
participation for up to an additional 36 months beyond their initial 60-month participation period.
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Monthly retirement benefits remain in the FRS Trust Fund during DROP participation and accrue
interest. As of June 30, 2019, the FRS Trust Fund held $2,542,917,693 in accumulated benefits for 33,490
DROP participants. Of these 33,490 DROP participants, 31,749 were active in the DROP with balances
totaling$2,277,211,830. The remaining participants were no longer active in the DROP and had balances
totaling$265,705,863 to be processed after June 30,2019.
Administration. The Department of Management Services, Division of Retirement administers
the FRS Pension Plan. The State Board of Administration (the "SBA") invests the assets of the FRS
Pension Plan held in the FRS Trust Fund. Costs of administering the FRS Pension Plan are funded from
earnings on investments of the FRS Trust Fund. Reporting of the FRS Pension Plan is on the accrual basis
of accounting. Revenues are recognized when earned and expenses are recognized when the obligation
is incurred.
Contributions. All participating employers must comply with statutory contribution
requirements. Section 121.031(3), Florida Statutes, requires an annual actuarial valuation of the FRS
Pension Plan, which is provided to the Legislature as guidance for funding decisions. Employer and
employee contribution rates are established in Section 121.71, Florida Statutes. Employer contribution
rates under the uniform rate structure(a blending of both the FRS Pension Plan and FRS Investment Plan
rates) are recommended by the actuary but set by the Legislature. Statutes require that any unfunded
actuarial liability ("UAL") be amortized within 30 plan years. Pursuant to Section 121.031(3)(f), Florida
Statutes, any surplus amounts available to offset total retirement system costs are to be amortized over a
10-year rolling period on a level-dollar basis. The balance of legally required reserves for all defined
benefit pension plans at June 30, 2019, was $163,573,726,217. These funds were reserved to provide for
total current and future benefits,refunds,and administration of the FRS Pension Plan.
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Effective July 1, 2011, both employees and employers of the FRS are required to make
contributions to establish service credit for work performed in a regularly established position. Effective
July 1, 2002, the Florida Legislature established a uniform contribution rate system for the FRS, covering
both the FRS Pension Plan and the FRS Investment Plan. The uniform rates for Fiscal Year 2018-19 are as
follows:
Employee Employer Total
Membership Class Contribution Rate Contribution Rate(1) Contribution Rate
Regular 3.00% 6.54% 9.54%
Special Risk 3.00 22.78 25.78
Special Risk Administrative Support 3.00 33.26 36.26
Elected Officers—Judges 3.00 39.05 42.05
Elected Officers-Legislators/Attorneys/Cabinet 3.00 55.03 58.03
Elected Officers—County,City,Special Districts 3.00 46.98 49.98
Senior Management Service 3.00 22.34 25.34
Deferred Retirement Option Program N/A 12.37 12.37
() These rates include the normal cost and unfunded actuarial liability contributions but do not
include the 1.66% contribution for the Retiree Health Insurance Subsidy ("HIS") and the fee of
0.06% for administration of the FRS Investment Plan and provision of educational tools for both
plans.
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30,2019.
The contributions of the County are established and may be amended by the State Legislature.
The consolidated County's contributions to the FRS Pension Plan totaled $25,202,730 for the Fiscal Year
ended September 30,2019.
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Pension Amounts for the FRS Pension Plan.
Schedule of Changes in Net Pension Liability and Related Ratios
(in thousands)
Total Pension Liability Tune 30,2017 Tune 30,2018 Tune 30,2019
Service cost $2,073,754 $2,423,987 $2,523,070
Interest on total pension liability 12,484,167 12,847,930 13,194,902
Effect of plan changes 92,185 - 11,404
Effect of economic/demographic(gains)or losses 1,412,462 554,811 247,482
Effect of assumption changes or inputs 10,398,344 2,235,654 1,585,626
Benefit payments f9,859,319) (10,377,575) (10,867,549)
Net change in total pension liability 16,601,593 7,684,807 6,694,935
Total pension liability,beginning 167,030,999 183,632,592 191,317,399
Total pension liability,ending(a) $183,632,592 191,317,399 198,012,334
Fiduciary Net Position
Employer contributions $2,603,246 $2,849,920 $3,100,721
Member contributions 744,839 746,370 752,813
Investment income net of investment expenses 18,801,917 13,955,233 9,410,440
Benefit payments (9,859,319) (10,377,575) (10,867,549)
Administrative expenses (18,340) (20,178) (19,580)
Net change in plan fiduciary net position 12,272,342 7,153,770 2,376,845
Fiduciary net position,beginning 141,780,921 154,043,111 161,196,881
Fiduciary net position,ending(b) $154,053,263(1) $161,196,881 $163,573,726
Net pension liability,ending=(a)—(b) $29,579,329 $30,120,518 $34,438,608
Fiduciary net position as a%of total pension liability 83.89% 84.26% 82.61%
Covered payroll $33,775,800 $34,675,000 $35,571,200
Net pension liability as a%of covered payroll 87.58% 86.87% 96.82%
(1) Reflects restatement of beginning net position at July 1,2017, due to implementation of GASB 75,
Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions.
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30,2019.
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Actuarial Methods and Assumptions for the FRS Pension Plan. The total pension liability was
determined by an actuarial valuation as of the valuation date of July 1, 2019, calculated based on the
discount rate and actuarial assumptions below:
June 30,2018 June 30,2019
Discount rate 7.00% 6.90%
Long-term expected rate of return,net of investment expense 7.00% 6.90%
Bond Buyer General Obligation 20-Year Bond Municipal Bond N/A N/A
Index
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30,2019.
The plan's fiduciary net position was projected to be available to make all projected future benefit
payments of current active and inactive employees in determining the projected depletion date.
Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected
rate of return.
The actuarial assumptions used to determine the total pension liability as of June 30, 2019, were
based on the results of an actuarial experience study for the period July 1,2013 -June 30,2018.
Valuation Date July 1,2019
Measurement Date June 30,2019
Asset Valuation Method Fair Market Value
Inflation 2.60%
Salary increase including inflation 3.25%
Mortality PUB-2010 base table varies by member category and
sex,projected generationally with Scale MP-2018
Actuarial cost method Individual Entry Age Normal
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30,2019.
Sensitivity Analysis for the FRS Pension Plan. The following presents the net pension liability of
the FRS, calculated using the discount rate of 6.90%, as well as what the FRS's net pension liability would
be if it were calculated using a discount rate that is one percentage point lower(5.90%)or one percentage
point higher(7.90%)than the current rate.
1%Decrease Current Discount Rate 1%Increase
5.90% 6.90% 7.90%
Total pension liability $223,106,611,000 $198,012,334,000 $177,054,368,000
Fiduciary net position 163,573,726,217 163,573,726,217 163,573,726,217
Net pension liability $59,532,884,783 $34,438,607,783 $13,480,641,783
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30,2019.
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Retiree Health Insurance Subsidy Program
The HIS Program is a cost-sharing multiple-employer defined benefit pension plan established
under Section 112.363, Florida Statutes. The benefit is a monthly payment to assist retirees of state-
administered retirement systems in paying their health insurance costs and is administered by the
Division of Retirement within the Department of Management Services. For the fiscal year ended
June 30, 2019, eligible retirees and beneficiaries received a monthly HIS payment equal to the number of
years of creditable service completed at the time of retirement multiplied by $5. The payments are at
least$30 but not more than$150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible
to receive a HIS benefit, a retiree under a state-administered retirement system must provide proof of
health insurance coverage,which can include Medicare.
The HIS Program is funded by required contributions from FRS participating employers as set by
the Legislature. Employer contributions are a percentage of gross compensation for all active FRS
members. For the fiscal year ended June 30, 2019, the contribution rate was 1.66%of payroll pursuant to
Section 112.363, Florida Statutes. HIS contributions are deposited in a separate trust fund from which
HIS payments are authorized. HIS benefits are not guaranteed and are subject to annual legislative
appropriation. In the event the legislative appropriation or available funds fail to provide full subsidy
benefits to all participants,the legislature may reduce or cancel HIS payments.
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Pension Amounts for the HIS.
Schedule of Changes in Net Pension Liability and Related Ratios
(in thousands)
Total Pension Liability June 30,2016 June 30,2017 June 30,2018 June 30,2019
Service cost $256,710 $304,537 $258,450 $232,118
Interest on total pension liability 390,757 337,486 389,705 418,157
Effect of plan changes 0 0 0 0
Effect of economic/demographic(gains)or losses (30,826) 0 188,173 0
Effect of assumption changes or inputs 1,352,459 (1,073,716) (398,996) 516,083
Benefit payments (449,857) (465,980) (491,528) (491,890)
Net change in total pension liability 1,519,243 (897,673) (54,196) 674,468
Total pension liability,beginning 10,249,201 11,768,445 10,870,772 10,816,576
Total pension liability,ending(a) $11,768,445 $10,870,772 $10,816,576 11,491,044
Fiduciary Net Position
Employer contributions $512,564 $529,229 $542,303 $555,291
Member contributions 0 0 237 195
Investment income net of investment expenses 565 1,380 3,311 6,181
Benefit payments (449,857) (465,980) (491,531) (491,890)
Administrative expenses (188) (177) (168) (195)
Net change in plan fiduciary net position 63,084 64,452 (54,152) 69,582
Fiduciary net position,beginning 50,774 113,859 178,311 232,463
Fiduciary net position,ending(b) $113,859 $178,311 $232,463 $302,045
Net pension liability,ending=(a)-(b) $11,654,586 $10,692,461 $10,584,113 $11,188,999
Fiduciary net position as a % of total pension 0.97% 1.64% 2.15% 2.63%
liability
Covered payroll $30,875,274 $31,885,633 $32,670,918 $33,452,626
Net pension liability as a%of covered payroll 37.75% 33.53% 32.40% 33.45%
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30,2019.
Actuarial Methods and Assumptions for the HIS. The total pension liability was determined by
an actuarial valuation as of the valuation date, calculated based on the discount rate and actuarial
assumptions below, and then was projected to the measurement date. Any significant changes during
this period have been reflected as prescribed by GASB 67. The same demographic and economic
assumptions that were used in the Florida Retirement System Actuarial Valuation as of July 1, 2019
("funding valuation") were used for the HIS Program, unless otherwise noted. In a given membership
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class and tier, the same assumptions for both FRS Investment Plan members and for FRS Pension Plan
members were used.
June 30,2018 June 30,2019
Discount rate 3.87% 3.50%
Long-term expected rate of return,net of investment expense N/A N/A
Bond Buyer General Obligation 20-Year Bond Municipal Bond 3.87% 3.50%
Index
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30,2019.
In general, the discount rate for calculating the total pension liability under GASB 67 is equal to
the single rate equivalent to discounting at the long-term expected rate of return for benefit payments
prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go
basis,the depletion date is considered to be immediate, and the single equivalent discount rate is equal to
the municipal bond rate selected by the plan sponsor. The discount rate used in the 2019 valuation was
updated from 3.87% to 3.50%, reflecting the change in the Bond Buyer General Obligation 20-Year Bond
Municipal Bond Index as of June 30,2019.
The actuarial assumptions used to determine the total pension liability as of June 30, 2019, were
based on the results of an actuarial experience study for the period July 1,2008-June 30,2013.
Valuation Date July 1,2018
Measurement Date June 30,2019
Inflation 2.60%
Salary increase including inflation 3.25%
Mortality Generational RP-2000 with Projection Scale BB
Actuarial cost method Individual Entry Age
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30,2019.
Sensitivity Analysis for the HIS. The following presents the net pension liability of the HIS,
calculated using the discount rate of 3.50%, as well as what the HIS's net pension liability would be if it
were calculated using a discount rate that is one percentage point lower (2.50%) or one percentage point
higher(4.50%)than the current rate.
1%Decrease Current Discount Rate 1%Increase
2.50% 3.50% 4.50%
Total pension liability $13,074,860,670 $11,491,043,673 $10,171,903,430
Fiduciary net position 302,044,388 302,044,388 302,044,388
Net pension liability $12,772,816,282 $11,188,999,285 $9,869,859,042
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30,2019.
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FRS Investment Plan
The SBA administers the defined contribution plan officially titled the FRS Investment Plan. The
Florida Legislature establishes and amends the benefit terms of the plan. Retirement benefits are based
upon the value of the member's account upon retirement. The FRS Investment Plan provides vesting
after one year of service regardless of membership class. If an accumulated benefit obligation for service
credit originally earned under the FRS Pension Plan is transferred to the FRS Investment Plan, the years
of service required for vesting under the FRS Pension Plan (including the service credit represented by
the transferred funds) is required to be vested for these funds and the earnings on the funds. The
employer pays a contribution as a percentage of salary that is deposited into the individual member's
account. Effective July 1, 2011, there is a mandatory employee contribution of 3.00%. The FRS
Investment Plan member directs the investment from the options offered under the plan. Costs of
administering the plan, including the FRS Financial Guidance Program, are funded through an employer
assessment of payroll and by forfeited benefits of plan members. After termination and applying to
receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic
payment under the FRS Investment Plan,receive a lump-sum distribution,or leave the funds invested for
future distribution. Disability coverage is provided;the employer pays an employer contribution to fund
the disability benefit which is deposited in the FRS Trust Fund. The member may either transfer the
account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed
lifetime monthly benefits under the FRS Pension Plan, or remain in the FRS Investment Plan and rely
upon that account balance for retirement income.
GASB 68/71
The Governmental Accounting Standards Board (GASB) issued Statement No. 68, "Accounting
and Financial Reporting for Pensions" — an amendment to GASB Statement No. 27, "Accounting for
Pensions by State and Local Governmental Employers", which was subsequently amended by GASB
No. 71, "Pension Transition for Contributions Made Subsequent to the Measurement Date" (collectively,
"GASB No. 68/71"), which was effective for the County's fiscal year ended September 30, 2016. As a
participating employer, the County implemented GASB No. 68/71, which requires an employer
participating in a cost-sharing multiple-employer defined benefit pension plans to report the employer's
proportionate share of the net pension liabilities of the defined benefit pension plans. The greatest impact
of GASB No. 68/71 to the County is the inclusion of the County's proportionate share of the FRS Net
Pension Liability (the "County's Net Pension Liability"), which reduced the County's Unrestricted Net
Position and Total Net Position. Additionally, pension expense is no longer equal to pension
contributions made, but instead is equal to the change in net pension liability from year to year, with
adjustments for deferred amounts. The County is also now required to include more extensive footnote
disclosures and supplementary schedules. All of these decreases are accrual based accounting changes,
and do not represent decreases in cash or liquidity positions.
Multiple Employer Defined Benefit Retirement Plan
As provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost-sharing,
multiple-employer defined benefit plans administered by the Florida Department of Management
Services, Division of Retirement, including the FRS Pension Plan and HIS. Under Section 121.4501,
Florida Statutes,the FRS also provides a defined contribution plan FRS Investment Plan alternative to the
FRS Pension Plan, which is administered by the SBA. As a general rule, membership in the FRS is
compulsory for all employees working in a regularly established position for a state agency, county
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government, district school board, state university, community college, or a participating city or special
district within the State of Florida. The FRS provides retirement and disability benefits, annual cost-of-
living adjustments, and death benefits to plan members and beneficiaries. Benefits are established by
Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to the law
can be made only by an act of the Florida State Legislature.
The State of Florida annually issues a publicly available financial report that includes financial
statements and required supplementary information for the FRS. The latest available report may be
obtained by writing to the State of Florida Division of Retirement, Department of Management Services,
P.O. Box 9000, Tallahassee, Florida 32315-9000 or from the website:
www.dms.myflorida.com/workforce operations/retiremenitipublications.
County's Plan Description and Benefits Provided
General
The County provides post employment healthcare benefits for retirees through a single employer
defined benefit plan(the"County's OPEB Plan") and can amend the benefits provisions. The participants
of this plan include retirees of the Board of County Commissioners, the Clerk of the Circuit Court and
Comptroller, the Property Appraiser, the Tax Collector and the Supervisor of Elections. The Sheriff also
provides post employment healthcare benefits under as separate plan. In accordance with Section
112.0801, Florida Statutes, employees who retire and immediately begin receiving benefits from the FRS
have the option of paying premiums to continue in the County's health insurance plan at the same group
rate as for active employees.
The Board of County Commissioners and the Tax Collector also subsidize the cost of the post
employment healthcare for qualifying retirees and each has the authority to amend benefit provisions.
The Board of County Commissioners offers a subsidy 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 Board, be at least 55 years of age or have
completed 30 years of service under the Florida Retirement System(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 plan. A subsidy is currently provided to 24 retirees. The Tax Collector
offers a subsidy of 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 for employees hired prior to June 1,
2015.A subsidy is currently provided to 6 retirees.
The County's OPEB Plan is currently being funded on a pay as you go basis. No trust or agency
fund has been established for the plan.The plan does not issue a separate financial report.
Participant Data
As of September 30,2019,the following employees were covered by the benefit terms:
Inactive plan members or beneficiaries currently receiving benefits 65
Active employees 2,443
Total employees 2,508
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Total OPEB Liability
The County's total OPEB liability of$9,169,502 was measured as of September 30, 2019 and was
determined by an actual valuation as of October 1, 2019. The following table shows the changes in the
County's total OPEB liability for the year ended September 30,2019.
Total OPEB
Liability
Balance,as of October 1,2018 $8,730,722
Changes:
Service Cost 438,933
Interest on Total OPEB Liability 287,048
Changes in Assumptions 387,596
Benefit Payments (674,797)
Net Changes 438,780
Balance,as of September 30,2019 $9,169,502
OPEB Liability Discount Rate Sensitivihy
The following presents the County's total OPEB liability, as well as what the County's total OPEB
liability would be if it were calculated using a discount rate one percentage point lower or one percentage
point higher than the current discount rate:
1%Decrease in Current 1%Increase in
Description Discount Rate Discount Rate Discount Rate
OPEB Plan Discount Rate 1.00% 2.00% 3.00%
Total OPEB Liability $9,906,057 $9,169,502 $8,502,103
OPEB Liability Healthcare Trend Rate Sensitivihy
The following presents the County's total OPEB liability, as well as what the County's total OPEB
liability would be if it were calculated using a healthcare trend rate one percentage point lower or one
percentage point higher than the current healthcare trend rate:
1%Decrease in 1%Increase in
Healthcare Cost Healthcare Cost Healthcare Cost
Description Trend Rate Trend Rate Trend Rate
Healthcare Cost Trend Rate 4.00% 5.00% 6.00%
Total OPEB Liability $8,294,158 $9,169,502 $10,188,349
Deferred Outflows And Inflows Of Resources Related To OPEB
For the year ended September 30,2019,the County's OPEB expense was$835,132.In addition,the
County reported deferred outflows of resources and deferred inflows of resources from the following
sources:
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Deferred Deferred
Description Outflows Inflows
Differences between expected and actual economic experience $- $440,795
Changes in assumptions 823,983 167,593
Total $823,983 $608,388
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be amortized over 4.31 years and will be recognized as follows:
Deferred Deferred
Outflows of Inflows of
Year Ending September 30 Resources Resources
2020 $191,179 $156,891
2021 191,179 156,891
2022 191,179 155,524
2023 191,179 107,696
Thereafter 59,267 31,386
Actuarial Methods and Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject
to continual revision as actual results are compared with past expectations and new estimates are made
about the future.
Calculations for financial reporting purposes are based on the benefits provided under terms of
the plan as understood by the employer and the plan members in effect at the time of each valuation and
on the pattern of sharing of costs between the employer and plan members to that point.The projection of
benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or
contractual funding limitations on the pattern of cost sharing between the employer and plan members in
the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective,
actuarial methods and assumptions used include techniques that are designed to reduce the effects of
short-term volatility in actuarial accrued liabilities and the actuarial value of assets.
The actuarial methods are:
Actuarial Cost Method Entry Age Actuarial
The actuarial assumptions are:
Discount rate 2% (Based on the 20 year AA municipal rate)
Healthcare cost trend rate 6%decreasing to 5%in 2026 and thereafter
Salary increase 3%
New employees None
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Mortality rates were based on the RP-2014 Mortality Fully Generational tables using Projection
Scale MP-2018.
Since the most recent valuation,the following changes have been made:
The discount rate was changed from 3.25%to 2.0%.
Sheriff's Plan Description and Benefits Provided
General
The Sheriff provides post employment healthcare benefits for retirees through a single employer
defined benefit plan(the"Sheriff's OPEB Plan") and can amend the benefit provisions. In accordance with
Florida Statute 112.0801, 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.
Prior to 2010, the Sheriff subsidized approximately 20% of the cost for both single and family
healthcare for its retirees who have 6 years of creditable service with the Sheriff and who receive a
monthly retirement benefit from the Florida Retirement System. Approximately 29% of retirees receive
the subsidy.
The Sheriff's OPEB Plan is currently being funded on a pay as you go basis. No trust or agency
fund has been established for the plan.The plan does not issue a separate financial report.
Inactive plan members or beneficiaries currently receiving benefits 125
Active employees 1,122
Total employees 1,247
Total OPEB Liability
The Sheriff's total OPEB liability of$21,786,049 was measured as of September 30, 2019 and was
determined by an actual valuation as of October 1, 2019. The following table shows the changes in the
Sheriff's total OPEB liability for the year ended September 30,2019.
Total OPEB
Liability
Balance,as of October 1,2018 $19,492,497
Changes:
Service Cost 485,365
Interest on Total OPEB Liability 631,825
Differences Between Expected and Actual Experience
Changes in Assumptions or Other Inputs 2,250,569
Benefit Payments (1,074,207)
Net Changes 2,293,552
Balance,as of September 30,2019 $21,786,049
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OPEB Liability Discount Rate Sensitivity
The following presents the Sheriff's total OPEB liability, as well as what Sheriff's total OPEB
liability would be if it were calculated using a discount rate one percentage point lower or one percentage
point higher than the current discount rate:
1%Decrease in Current 1%Increase in
Description Discount Rate Discount Rate Discount Rate
OPEB Plan Discount Rate 1.00% 2.00% 3.00%
Total OPEB Liability $23,864,077 $21,786,049 $19,950,680
OPEB Liability Healthcare Trend Rate Sensitivity
The following presents the Sheriff's total OPEB liability, as well as what the Sheriff's total OPEB
liability would be if it were calculated using a healthcare trend rate one percentage point lower or one
percentage point higher than the current healthcare trend rate:
1%Decrease in 1%Increase in
Healthcare Cost Healthcare Cost Healthcare Cost
Description Trend Rate Trend Rate Trend Rate
Healthcare Cost Trend Rate 5.00% 6.00% 7.00%
Total OPEB Liability $19,982,313 $21,786,049 $23,591,848
Deferred Outflows And Inflows Of Resources Related To OPEB
For the year ended September 30,2019, the Sheriff's OPEB expense was$835,132. In addition, the
Sheriff reported deferred outflows of resources and deferred inflows of resources from the following
sources:
Deferred Deferred
Description Outflows Inflows
Differences between expected and actual economic experience $1,762,763 $60,888
Changes in assumptions 2,250,569 773,597
Total $4,013,332 $834,485
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be amortized over 7.17 and 7.09 years and will be recognized as follows:
Deferred Deferred
Outflows of Inflows of
Year Ending September 30 Resources Resources
2020 $603,128 $136,740
2021 603,128 136,740
2022 603,128 136,740
2023 603,128 136,740
Thereafter 997,692 150,785
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Actuarial Methods and Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject
to continual revision as actual results are compared with past expectations and new estimates are made
about the future.
Calculations for financial reporting purposes are based on the benefits provided under terms of
the plan as understood by the employer and the plan members in effect at the time of each valuation and
on the pattern of sharing of costs between the employer and plan members to that point.The projection of
benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or
contractual funding limitations on the pattern of cost sharing between the employer and plan members in
the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective,
actuarial methods and assumptions used include techniques that are designed to reduce the effects of
short-term volatility in actuarial accrued liabilities and the actuarial value of assets.
The actuarial methods are:
Actuarial Cost Method Entry Age Actuarial
The actuarial assumptions are:
Discount rate 2% (Based on the 20 year AA municipal rate)
Healthcare cost trend rate 6%decreasing to 5%in 2021 and thereafter
Salary increase None
New employees None
Mortality rates were based on the RP-2014 Mortality Fully Generational tables using Projection
Scale MP-2017.
Since the most recent valuation,the following changes have been made:
The discount rate was changed from 3.25%to 2.0%.
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ESTIMATED SOURCES AND USES OF FUNDS
The proceeds to be received from the sale of the Series 2020 Bonds are expected to be applied as
follows:
Series Series
2020A 2020B
Bonds Bonds Total
SOURCES:
Principal Amount $ $
[Net] Original Issue Premium/Discount
Total Sources $ $
USES:
Deposit to Construction account $ $
Deposit to Real Property Account
Prepay Prior Indebtedness
Costs of Issuance(1)
Total Uses $ $
(1) Includes underwriters'discount and legal,financial advisory and other fees and expenses.
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DEBT SERVICE SCHEDULE
The following table sets forth the annual debt service schedule for the Series 2020 Bonds.
Bond Series 2020A Bonds Series 2020B Bonds
Year Total
(Ended Debt
October 1) Principal Interest Debt Service Principal Interest Debt Service Service
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
TOTALS
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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 and Comptroller of Collier County
and Clerk to the County(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. U.S.Treasury&Government Guaranteed -U.S. Treasury obligations, and obligations the
principal and interest of which are backed or guaranteed by the full faith and credit of
the U S. Government.
2. Federal Agency/GSE - Debt obligations, participations or other instruments issued or
fully guaranteed by any U.S. Federal agency, instrumentality or government-sponsored
enterprise(GSE).
3. Corporates — U.S. dollar denominated corporate notes, bonds or other debt obligations
issued or guaranteed by a domestic corporation,financial institution,non-profit, or other
entity.
4. Municipals — Obligations, including both taxable and tax-exempt. issued or guaranteed
by any State, territory or possession of the United States, political subdivision, public
corporation, authority, agency board, instrumentality or other unit of local government
of any State or territory.
5. Agency Mortgage Backed Securities - Mortgage-backed securities (MBS), backed by
residential, multi-family or commercial mortgages, that are issued or fully guaranteed as
to principal and interest by a U.S. Federal agency or government sponsored enterprise,
including but not limited to pass-throughs, collateralized mortgage obligations (CMOs)
and REMICs.
6. Non-Negotiable Certificate of Deposits -Non-negotiable interest bearing time certificates
of deposit, or savings accounts in banks organized under the laws of this state or in
national banks organized under the laws of the United States and doing business in this
state, provided that any such deposits are secured by the Florida Security for Public
Deposits Act, Chapter 280,Florida Statutes.
7. Depository Bank Account Now accounts in banks organized under the laws of this state
or in national banks organized under the laws of the United States and doing business in
this state, provided that any such deposits are secured by the Florida Security for Public
Deposits Act,Chapter 280,Florida Statutes.
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8. Commercial Paper — U.S. dollar denominated commercial paper issued or guaranteed
by a domestic corporation, company,financial institution, trust or other entity,including
both unsecured debt and asset-backed programs.
9. Repurchase Agreements - Repurchase agreements (Repo or RP) that meet the following
requirements:
a. Must be governed by a written SIFMA Master Repurchase Agreement which
specifies securities eligible for purchase and resale, and which provides the
unconditional right to liquidate the underlying securities should the
Counterparty default or fail to provide full timely repayment.
b. Counterparty must be a Federal Reserve Bank, a Primary Dealer as designated
by the Federal Reserve Bank of New York, or a nationally chartered commercial
bank.
c. Securities underlying repurchase agreements must be delivered to a third party
custodian under a written custodial agreement and may be of deliverable or tri-
party form. Securities must be held in the County's custodial account or in a
separate account in the name of the County.
d. Acceptable underlying securities include only securities that are direct
obligations of, or that are fully guaranteed by, the United States or any agency of
the United States,or U.S.Agency-backed mortgage related securities.
e. Underlying securities must have an aggregate current market value of at least
102% (or 100% if the counterparty is a Federal Reserve Bank) of the purchase
price plus current accrued price differential at the close of each business day.
f. Final term of the agreement must be 1 year or less.
10. Money Market Funds - Shares in open-end and no-load money market mutual funds
provided such funds are registered under the Investment Company Act of 1940 and
operate in accordance with Rule 2a-7.
11. Fixed-Income Mutual Funds - Shares in open-end and no-load fixed-income mutual
funds whose underlying investments would be permitted for purchase under this policy
and all its restrictions.
12. Local Government Investment Pools — State, local government or privately-sponsored
investment pools that are authorized pursuant to state law.
13. The Florida Local Government Surplus Funds Trust Funds("Florida Prime").
General Investment and Portfolio Limits
1. General investment limitations:
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a. Investments must be denominated in U S dollars and issued for legal sate in U.S.
markets.
b. Minimum ratings are based on the highest rating by any one Nationally
Recognized Statistical Ratings Organization ("NRSRO"), unless otherwise
specified.
c. All limits and rating requirements apply at time of purchase..
d. Should a security fall below the minimum credit rating requirement for
purchase, the Clerk will notify the Board .e The maximum maturity (or average
life for MBS/ABS) of any Investment is 5 years. Maturity and average life are
measured from settlement date. The final maturity date can be based on any
mandatory call,put,pre-refunding date, or other mandatory redemption date.
2. General portfolio limitations:
a. The maximum effective duration of the aggregate portfolio is 3 years.
3. Investment in the following are permitted, provided they meet all other policy
requirements:
a. Callable, step-up callable, called, pre-refunded puttable and extendable
securities. as long as the effective final maturity meets the maturity limits for the
sector.
b. Variable-rate and floating-rate securities.
c. Subordinated secured and covered debt, if it meets the ratings requirements for
the sector.
d. Zero coupon issues and strips, excluding agency mortgage-backed Interest-only
structures(I/Os).
e. Treasury TIPS
4. The following are NOT PERMITTED investments, unless specifically authorized by
statute and with prior approval of the governing body:
a. Trading for speculation.
b. Derivatives (other than callables and traditional floating or variable-rate
instruments).
c. Mortgage-backed interest-only structures(I/Os).
d. Inverse or leveraged floating-rate and variable-rate instruments.
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e. Currency, equity, index and event-linked notes (e.g. range notes), or other
structures that could return less than par at maturity.
f. Private placements and direct loans, except as may be legally permitted by Rule
144A or commercial paper issued under a 4(2)exemption from registration.
g. Convertible,high yield,and non-U.S. dollar denominated debt.
h. Short sales.
i. Use of leverage.
j. Futures and options.
k. Mutual funds, other than fixed-income mutual funds and ETFs, and money
market funds.
1. Equities,commodities,currencies and hard assets.
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 2020 Bonds are subject to an
approving legal opinions of Nabors, Giblin & Nickerson, P.A., Tampa, Florida, Bond Counsel, whose
approving opinions (forms of which are attached hereto as APPENDIX D-1 and APPENDIX D-2 will be
available at the time of delivery of the Series 2020 Bonds. The actual legal opinions to be delivered by
Bond Counsel may vary from that text if necessary to reflect facts and law on the date of delivery. Such
opinions will speak only as of their date, and subsequent distribution of them 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 their dates.
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
2020 Bonds; provided, however, that Bond Counsel will render an opinion to the Underwriters of the
Series 2020 Bonds (upon which opinion only the Underwriters may rely) relating to the fairness of the
presentation of certain statements contained herein under the heading "TAX MATTERS" and certain
statements which summarize provisions of the Resolution and the Series 2020 Bonds, and (2) the
compliance with any federal or state law with regard to the sale or distribution of the Series 2020 Bonds.
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.
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LITIGATION
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 2020
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 County experiences other claims, litigation, and various legal proceedings which, except as
described above, 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, 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
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 2020 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
2020 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 MATTERS
Series 2020A Bonds
Opinion of Bond Counsel
In the opinion of Bond Counsel, the form of which is included as APPENDIX D-1 hereto, the
interest on the Series 2020A Bonds is excludable from gross income of the owners thereof for federal
25694/009/01626500.DOCv3
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income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum
tax under existing statutes, regulations, rulings and court decisions. Failure by the County to comply
subsequently to the issuance of the Series 2020A Bonds with certain requirements of the Code, including
but not limited to requirements regarding the use, expenditure and investment of Series 2020A Bond
proceeds and the timely payment of certain investment earnings to the Treasury of the United States,may
cause interest on the Series 2020A 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 2020A 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 2020A Bonds, including,
among other things, restrictions relating to the use of investment of the proceeds of the Series 2020A
Bonds and the payment of certain arbitrage earnings in excess of the "yield"on the Series 2020A Bonds to
the Treasury of the United States. Noncompliance with such provisions may result in interest on the
Series 2020A Bonds being included in gross income for federal income tax purposes retroactive to their
date of issue.
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 2020A Bonds. Prospective purchasers of the Series 2020A Bonds should be aware that the
ownership of the Series 2020A Bonds may result in other collateral federal tax consequences. For
example, ownership of the Series 2020A 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 2020A Bonds,
(2)the branch profits tax, and(3)the inclusion of interest on the Series 2020A Bonds in passive income for
certain Subchapter S corporations. In addition,the interest on the Series 2020A 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 2020A 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 2020A
BONDHOLDERS SHOULD CONSULT WITH THEIR TAX SPECIALISTS FOR INFORMATION IN
THAT REGARD.
Other Tax Matters
Interest on the Series 2020A Bonds may be subject to state or local income taxation under
applicable state or local laws in other jurisdictions. Purchasers of the Series 2020A Bonds should consult
their tax advisors as to the income tax status of interest on the Series 2020A 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
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57
similar to the Series 2020A Bonds. In some cases these proposals have contained provisions that altered
these consequences on a retroactive basis. Such alteration of federal tax consequences may have affected
the market value of obligations similar to the Series 2020A 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 2020A 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 2020A Bonds.
Original Issue Discount
Certain of the Series 2020A Bonds(the"Discount Bonds")may be offered and sold to the public at
an original issue discount, which is the excess of the principal amount of the Discount Bonds over the
initial offering price to the public, excluding bond houses, brokers or similar persons or organizations
acting in the capacity of underwriters or wholesalers, at which price a substantial amount of the Discount
Bonds of the same maturity was sold. Original issue discount represents interest which is excluded from
gross income for federal income tax purposes to the same extent as interest on the Discount Bonds.
Original issue discount will accrue over the term of a Discount Bond at a constant interest rate
compounded semi-annually. An initial purchaser who acquires a Discount Bond at the initial offering
price thereof to the public will be treated as receiving an amount of interest excludable from gross income
for federal income tax purposes equal to the original issue discount accruing during the period he holds
such Discount Bonds and will increase its adjusted basis in such Discount Bonds by the amount of such
accruing discount for purposes of determining taxable gain or loss on the sale or other disposition of such
Discount Bonds. The federal income tax consequences of the purchase, ownership and prepayment, sale
or other disposition of Discount Bonds which are not purchased in the initial offering at the initial
offering price may be determined according to rules which differ from those above. Owners of Discount
Bonds should consult their own tax advisors with respect to the precise determination for federal income
tax purposes of interest accrued upon sale, prepayment or other disposition of such Discount Bonds and
with respect to the state and local tax consequences of owning and disposing of such Discount Bonds.
Original Issue Premium
Certain of the Series 2020A Bonds (the "Premium Bonds") may be offered and sold to the public
at a price in excess of the principal amount of such Premium Bonds, which excess constitutes to an initial
purchaser amortizable bond premium which is not deductible from gross income for Federal income tax
purposes. The amount of amortizable bond premium for a taxable year is determined actuarially on a
constant interest rate basis over the term of the Premium Bonds which term ends on the earlier of the
maturity or call date for each Premium Bond which minimizes the yield on said Premium Bonds to the
purchaser. For purposes of determining gain or loss on the sale or other disposition of a Premium Bond,
an initial purchaser who acquires such obligation in the initial offering to the public at the initial offering
price is required to decrease such purchaser's adjusted basis in such Premium Bond annually by the
amount of amortizable bond premium for the taxable year. The amortization of bond premium may be
taken into account as a reduction in the amount of tax-exempt income for purposes of determining
various other tax consequences of owning such Premium Bonds. The federal income tax consequences of
the purchase, ownership and sale or other disposition of Premium Bonds which are not purchased in the
initial offering at the initial offering price may be determined according to rules which differ from those
described above. Owners of the Premium Bonds are advised that they should consult with their own
advisors with respect to the state and local tax consequences of owning such Premium Bonds.
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58
Series 2020B Bonds
In the opinion of Bond Counsel, the form of which is included as APPENDIX D-2 hereto, the
interest on the Series 2020B Bonds is not excludable from gross income of the owners thereof for federal
income tax purposes. Interest on the Series 2020B Bonds may also be subject to state or local income
taxation under applicable state or local laws. Purchasers of the Series 2020B Bonds should consult their
own tax advisors as to the income tax status of interest on the Series 2020B Bonds in their particular state
or local jurisdiction.
Except as provided above, Bond Counsel is not rendering any opinion regarding tax
consequences of owning the Series 2020B Bonds. There are several tax-related issues attendant with
ownership of the Series 2020B Bonds,including,but not limited to, treatment of original issue discount or
premium,if any, treatment of secondary market discount or premium,if any,reporting requirements and
possible application of backup withholding tax, determination of an owner's tax basis and gains or losses
in connection with sales, exchanges or other dispositions of the Series 2020B Bonds, foreign ownership,
ownership by certain employee benefit plans and other retirement plans and other issues. Many of the
rules related to these issues are complicated and purchasers of the Series 2020B Bonds should consult
their own tax advisors and professionals as to the tax consequences of the purchase, ownership and
disposition of the Series 2020B Bonds under federal,state,local,foreign and other tax laws.
RATINGS
Fitch Ratings, Inc. ("Fitch") and Moody's Investors Service, Inc. ("Moody's") have assigned their
ratings of" "and" ,"respectively,to the Series 2020 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. There
is no assurance that such ratings will continue for any given period of time or that they will not be
lowered or withdrawn entirely by the rating agencies, or any of them,if in their judgment, circumstances
so warrant. A downward change in or withdrawal of any of such ratings, may have an adverse effect on
the market price of the Series 2020 Bonds. An explanation of the significance of the ratings can be
received from the rating agencies, at the following addresses: Fitch Ratings, Inc., One State Street Plaza,
New York, New York 10004 and Moody's Investors Service, Inc., 99 Church Street, New York, New York
10007.
FINANCIAL ADVISOR
PFM Financial Advisors LLC, Coral Gables, Florida, is the Financial Advisor to the County with
respect to the sale of the Series 2020 Bonds. The Financial Advisor has assisted the County in the
preparation of this Official Statement and has advised the County as to other matters relating to the
planning, structuring and sale of the Series 2020 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 this Official Statement.
PFM Financial Advisors LLC is an independent advisory firm and is not engaged in the business
of underwriting,trading or distributing municipal or other public securities.
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AUDITED FINANCIAL STATEMENTS
The general purpose financial statements of the County for the fiscal year ending September 30,
2019 of Clifton Larson Allen LLP, Naples, Florida (the "Auditor") are included in "APPENDIX C—Collier
County Comprehensive Annual Financial Report For Fiscal Year Ended September 30,2019"hereto. Such
statements speak only as of September 30, 2019. The consent of the County's auditor to include in this
Official Statement the aforementioned report was not requested, and such report of the County is
provided only as publicly available documents. The auditor was not requested nor did they perform any
procedures with respect to the preparation of this Official Statement or the information presented herein.
The Series 2020 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 2020 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 2020 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 2020 Bonds may not be
readily available or may be limited. The various legal opinions to be delivered concurrently with the
delivery of the Series 2020 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 or after such delivery. See "APPENDIX B — Form of the Resolution" attached hereto for a
description of events of default and remedies.
CONTINUING DISCLOSURE
The County has covenanted for the benefit of the Series 2020 Bondholders to provide certain
financial information and operating data relating to the County and the Series 2020 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 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 ("MSRB"). 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 2020 Bonds. These covenants have been
made in order to assist the Underwriters in complying with the continuing disclosure requirements of the
Rule.
25694/009/01626500.DOCv3
60
With respect to the Series 2020 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 complied in all material respects with its previous undertakings to provide
continuing disclosure information pursuant to the Rule.] The County fully anticipates satisfying all
future disclosure obligations required pursuant to the Rule. The County has entered into a contract with
Digital Assurance Certification,LLC to provide continuing disclosure dissemination agent services for all
of its outstanding bond issues.
UNDERWRITING
The Series 2020A Bonds are being purchased by (the "2020A
Underwriters") at an aggregate purchase price of $ (equal to the par amount of the Series
2020A Bonds of$ [plus/less] a net original issue [premium/discount] of$ and less
a 2020A Underwriters'discount of$ ). The 2020A Underwriters' obligations are subject to certain
conditions precedent, and, it will be obligated to purchase all of the Series 2020A Bonds if any Series
2020A Bonds are purchased. The Series 2020A Bonds may be offered and sold to certain dealers
(including dealers depositing such Series 2020A 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 2020A
Underwriters.
The Series 2020B Bonds are being purchased by (the "2020B Underwriters" and
together with the 2020A Underwriters, the "Underwriters") at an aggregate purchase price of
$ (equal to the par amount of the Series 2020B Bonds less a 2020B Underwriters' discount of
$ ). The 2020B Underwriters' obligations are subject to certain conditions precedent, and, it will
be obligated to purchase all of the Series 2020B Bonds if any Series 2020B Bonds are purchased. The
Series 2020B Bonds may be offered and sold to certain dealers (including dealers depositing such Series
2020B 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 2020B Underwriters.
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 2020 Bonds. Payment of the fees of
such professionals and an underwriting discount to the Underwriters are each contingent upon the
issuance of the Series 2020 Bonds.
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 2020 Bonds,the security for the payment of the Series 2020 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 Circuit Court and Comptroller of the Board of County
25694/009/01626500.DOCv3
61
Commissioners,3315 Tamiami Trail East, Suite 102,Naples,Florida 34112-5324,telephone: (239)252-6299
or the County's Financial Advisor, PFM Financial Advisors LLC, 2222 Ponce de Leon Boulevard, Third
Floor,Coral Gables,Florida 33134,telephone(305)448-7131.
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
Underwriters. The Underwriters 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 Underwriters do 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 2020 Bonds.
The appendices attached hereto are integral parts of this Official Statement and must be read in
their entirety together with all foregoing statements.
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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 2020 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 MATTERS" as to which no opinion
shall be expressed), as of its date and as of the date of delivery of the Series 2020 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.
COLLIER COUNTY,FLORIDA
By:
Chairman,Board of County Commissioners
Collier County,Florida
Approved as to form and legal sufficiency:
By:
County Attorney
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APPENDIX A
GENERAL INFORMATION CONCERNING COLLIER COUNTY,FLORIDA
25694/009/01626500.DOCv3
APPENDIX A
GENERAL INFORMATION CONCERNING 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.
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 2019,the
County had an estimated population of 376,086. Part of the Everglades National Park, the United States'
only subtropical national park, comprises a portion of the County. 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
Burt L. Saunders Chairman November,2020
Andy Solis Vice Chairman November,2022
Donna Fiala Commissioner November,2020
William L.McDaniel,Jr. Commissioner November,2020
Penny Taylor Commissioner November,2022
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 Growth Management, Public Services, Public Utilities, and Administrative 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.
Budget Process
The County Manager's Director of Corporate, Financial and Management Services (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
25694/009/01626500.DOCv31
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, 2020 was adopted by the Board on September 19, 2019. 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 be completed by independent certified public
accountants retained by the County. The County retained the firm of Clifton Larson Allen LLP, Naples,
Florida, to undertake the audit for the fiscal year ended September 30,2019. The Comprehensive Annual
Financial Report for the fiscal year ended September 30, 2019 appears in APPENDIX C attached to this
Official Statement.
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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 Population United Population
County Percentage State Percentage States Percentage
Year Population Increase Population Increase Population Increase
1960 15,753 --- 4,951,560 --- 179,323,175 ---
1970 38,040 141.5% 6,791,418 37.1% 203,302,031 13.4%
1980 85,971 126.0 9,746,961 43.5 226,504,825 11.4
1990 152,099 76.9 12,938,071 32.7 250,410,000 10.6
2000 251,377 65.3 15,982,378 23.5 274,634,000 9.7
2010 321,520 27.9 18,801,310 17.6 308,745,538 12.4
2020* 384,600 19.6 21,556,000 14.7 322,742,000 4.5
*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. Census data from U.S.Bureau of Census.
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25694/009/01626500.DOCv33
Most of the growth of Collier County is due to migration. The estimated median age of the
County's population was 50.3 years according to the Collier County Comprehensive Annual Financial
Report for Fiscal Year Ending September 30,2019.
COLLIER COUNTY EMPLOYMENT
BY MAJOR INDUSTRY
Industry Establishments Employees
Retail Trade 1,651 21,745
Accommodation and Food Services 949 22,574
Health Care and Social Assistance 1,199 20,581
Construction 2,241 17,324
Administrative and Waste Services 1,539 10,150
Educational Services 129 7,993
Arts,Entertainment,and Recreation 287 8,153
Other Services(except Public Administration) 1,359 6,542
Professional and Technical Service 2,059 5,884
Public Administration 62 5,914
Agriculture,Forestry,Fishing and Hunting 96 2,914
Real Estate and Rental and Leasing 1,283 4,297
Finance and Insurance 755 4,145
Manufacturing 326 4,537
Wholesale Trade 483 4,184
Transportation and Warehousing 288 2,564
Information 178 1,335
Management of Companies and Enterprises 148 334
Utilities 28 210
Mining 4 20
Unclassified Establishments 272 111
Source: Florida Research and Economic Information Database Application, Labor Market Statistics,
Quarterly Census of Employment and Wages Program.
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COLLIER COUNTY EMPLOYMENT
(2010-2019)
State of
County Florida
Labor Unemployment Unemployment
Year Force Employment Unemployment Rate Rate
2010 145,349 128,427 16,922 11.6% 11.1
2011 148,810 133,729 15,081 10.1 10.0
2012 152,762 139,883 12,879 8.4 8.5
2013 155,575 144,588 10,987 7.1 7.2
2014 159,908 150,359 9,549 6.0 6.3
2015 163,394 154,808 8,586 5.3 5.5
2016 168,898 161,045 7,853 4.6 4.8
2017 173,522 166,305 7,217 4.2 4.2
2018 177,521 171,288 6,233 3.5 3.6
2019 180,626 174,040 5,586 3.1 3.1
Source: Florida Research and Economic Information Database Application,Labor Market Statistics,Local
Area Unemployment Statistics Program.
At this time the long-term impacts of COVID-19 on the County, the State and the United States
and employment is not known, however it is expected unemployment rates will increase significantly
from the figures stated above and included in this Appendix. On May 8, 2020,June 5, 2020,July 2, 2020,
August 7, 2020 and September 4, 2020, the Bureau of Labor Statistics released its unemployment reports
for April, 2020, May, 2020, June, 2020, July, 2020 and August, 2020, respectively, which indicate that
unemployment within the United States has increased to approximately 14.7% for April, 2020 and
declined to approximately 13.3%for May, 2020, 11.1%for June, 2020, 10.2%for July, 2020 and 8.4%for
August, 2020. The increases in unemployment rates are reflective of the negative impacts of COVID-19
on employment. While the County does not have updated unemployment statistics as of the date hereof,
the May, 2020,June 2020,July, 2020, August, 2020 and September, 2020 reports from the Bureau of Labor
Statistics are likely indicative of the kind of increase the County may see in its unemployment rate as a
result of the negative impacts of COVID-19. See "RISK FACTORS" in the body of this Official
Statement.
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BUILDING PERMIT ACTIVITIES IN COLLIER COUNTY
(2010-2019)
Single Multi- Residential
Year Family Units Family Units Valuation(1)
2010 747 513 $284,339
2011 866 320 272,942
2012 1,149 304 313,259
2013 1,540 817 448,610
2014 2,195 722 630,402
2015 2,611 954 795,923
2016 2,788 782 875,143
2017 2,615 846 688,050
2018 3,063 1,232 1,086,682
2019
(1) Valuation in thousands of dollars.
Source: Collier County,Florida Finance Department.
Agriculture
Agriculture is a dominant factor in the economy of the County. Rainfall averages about 54 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.
25694/009/01626500.DOCv36
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. Activity at this airport mainly consists of charter flights and general aviation. Air service at the
Southwest Florida 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 48,441 students in 31 elementary schools, 10 middle schools, 8
high schools, and a PreK-12 school (Everglades City School). There are also 13 Alternative School
Programs. 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. Florida Southwestern State 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 University, the tenth college in the State University System, is operating in
Lee County,immediately north of the County.
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 716 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 201 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.
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COLLIER COUNTY
FINANCIAL AND ECONOMIC DATA
(Fiscal Years 2010-2019)
(Unaudited)
Per Bank
Fiscal Percent Capita Deposits
Year Population Increase/(Decrease) Income (000's)
2010 331,800 -- $62,559 $9,981
2011 321,520 (3.1) 60,049 N/A
2012 323,785 0.7 59,264 N/A
2013 329,849 1.9 60,391 N/A
2014 339,642 3.0 64,872 N/A
2015 348,777 2.7 73,869 N/A
2016 353,936 1.5 78,473 N/A
2017 360,846 2.0 84,101 N/A
2018 368,534 2.1 87,829 N/A
2019 376,086 2.0 92,686 N/A
N/A=Data not currently available
Source: Collier County,Florida Finance Department.
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25694/009/01626500.DOCv38
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The following table contains the property tax rates for the last ten fiscal years.
COLLIER COUNTY,FLORIDA
PROPERTY TAX RATES-ALL DIRECT AND OVERLAPPING GOVERNMENTS(1)
(Fiscal Years 2010-2019)
(Unaudited)
Collier County Other
Special Debt County
Fiscal General Revenue Service School Independent
Year Fund Funds Funds Total District Districts Total
2010 3.5645 0.7225 0.1366 4.4236 5.2390 1.3243 10.9869
2011 3.5645 0.6926 0.1580 4.4151 5.6990 1.3299 11.4440
2012 3.5645 0.7627 0.0877 4.4149 5.5270 1.2202 11.1621
2013 3.5645 0.7555 0.0926 4.4126 5.5760 1.2395 11.2281
2014 3.5645 0.5873 0.0074 4.1592 5.6900 1.2228 11.0720
2015 3.5645 0.5860 0.0077 4.1582 5.5800 1.1853 10.9235
2016 3.5645 0.5856 0.0071 4.1572 5.4800 1.1331 10.7703
2017 3.5645 0.6323 0.0061 4.2029 5.2450 1.1138 10.5617
2018 3.5645 0.6145 0.0061 4.1851 5.1220 1.2735 10.5446
2019 3.5645 0.6122 0.0060 4.1827 5.0490 1.2331 10.4648
(1) 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,Florida Finance Department.
Property Tax Reform
Millage Rollback Legislation. In 2007, the State Legislature adopted a property tax plan which
significantly impacted ad valorem tax collections for State local governments (the "Millage Rollback
Legislation"). One component of the Millage Rollback Legislation required counties, cities and special
districts to rollback their millage rates for the 2007-2008 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
2006-2007; 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 2006-2007 ad valorem tax revenues by zero to nine percent(0%to 9%). In addition, the Rollback
Legislation also limited how much the aggregate amount of ad valorem tax revenues may increase in
future fiscal years. A local government may override certain portions of these requirements by a
supermajority,and for certain requirements,a unanimous vote of its governing body.
Constitutional Exemptions. Certain exemptions from property taxes have been enacted.
Constitutional exemptions include, but are not limited to, property owned by a municipality and used
exclusively by it for municipal or public purposes, certain household goods and personal effects to the
value fixed by general law, certain locally approved community and economic development ad valorem
tax exemptions to new businesses and expansions of existing businesses, as defined by general law and
historic preservation ad valorem tax exemptions to owners of historic properties, $25,000 of the assessed
value of property subject to tangible personal property tax, the assessed value of solar devices or
25694/009/01626500.DOCv310
renewable energy source devices subject to tangible personal property tax may be exempt from ad
valorem taxation, subject to limitations provided by general law, and certain real property dedicated in
perpetuity for conservation purposes, including real property encumbered by perpetual conservation
easements or by other perpetual conservation protections,as defined by general law.
Limitation on Increase in Assessed Value of Property. The State Constitution limits the increases in
assessed just value of homestead property to the lower 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. The accumulated difference between
the assessed value and the just value is known as the "Save Our Homes Benefit." Further, 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; new
homestead property shall be assessed at just value as of January 1 of the year following the establishment
of the homestead;and changes, additions,reductions or improvements to the homestead shall initially be
assessed as provided for by general law.
Owners of homestead property may transfer up to$500,000 of their Save Our Homes Benefit to a
new homestead property purchased within two years of the sale of their previous homestead property to
which such benefit applied if the just value of the new homestead is greater than or is equal to the just
value of the prior homestead. If the just value of the new homestead is less than the just value of the prior
homestead, then owners of homestead property may transfer a proportional amount of their Save Our
Homes Benefit, such proportional amount equaling the just value of the new homestead divided by the
just value of the prior homestead multiplied by the assessed value of the prior homestead.
For all levies other than school district levies, assessment increases for specified nonhomestead
real property may not exceed ten percent (10%) of the assessment for the prior year. This assessment
limitation is, by its terms, to be repealed effective January 1, 2019; however, the legislature by joint
resolution approved an amendment abrogating such repeal, which was approved by the electors in the
November 6,2018 general election and came into effect January 1,2019.
Homestead Exemptions. In addition to the exemptions described above, the State Constitution also
provides for a homestead exemption. Every person who has the legal title or beneficial title in equity to
real property in the State and who resides thereon and in good faith makes the same his or her permanent
residence or the permanent residence of others legally or naturally dependent upon such person is
eligible to receive a homestead exemption of up to$50,000. The first$25,000 applies to all property taxes,
including school district taxes. The additional exemption, up to$25,000, applicable to the assessed value
of the property between $50,000 and $75,000, applies to all levies other than school district levies. A
person who is receiving or claiming the benefit of an ad valorem tax exemption or a tax credit in another
state where permanent residency, or residency of another legally or naturally dependent upon the owner,
is required as a basis for the granting of that ad valorem tax exemption or tax credit is not entitled to the
homestead exemption. In addition to the general homestead exemption described in this paragraph, the
following homestead exemptions are authorized by State law:
Certain Persons 65 or Older. A board of county commissioners or the governing authority of any
municipality may adopt an ordinance to allow an additional homestead exemption equal to (i) of up to
$50,000 for persons age 65 or older with household income that does not exceed the statutory income
limitation of$20,000(as increased by the percentage increase in the average cost of living index each year
since 2001) or (ii) the assessed value of the property with a just value less than $250,000, as determined
25694/009/01626500.DOCv311
the first tax year that the owner applies and is approved, for any person 65 or older who has maintained
the residence as his or her permanent residence for not less than 25 years and whose household income
does not exceed the statutory income. The County enacted an ordinance providing for the exemption
from County ad valorem taxes described in this paragraph.
In addition, veterans 65 or older who are partially or totally permanently disabled may receive a
discount from tax on homestead property if the disability was combat related and the veteran was
honorably discharged upon separation from military service. The discount is a percentage equal to the
percentage of the veteran's permanent, service-connected disability as determined by the United States
Department of Veteran's Affairs. The County has not enacted an ordinance providing for the exemption
from County ad valorem taxes described in this paragraph.
Deployed Military Personnel. The State Constitution provides that by general law and subject to
certain conditions specified therein, each person who receives a homestead exemption who was a
member of the United States military or military reserves, the United States Coast Guard or its reserves,
or the Florida National Guard;and who was deployed during the preceding calendar year on active duty
outside the continental United States, Alaska, or Hawaii in support of military operations designated by
the legislature shall receive an additional exemption equal to a percentage of the taxable value of his or
her homestead property. The applicable percentage shall be calculated as the number of days during the
preceding calendar year the person was deployed on active duty outside the continental United States,
Alaska, or Hawaii in support of military operations designated by the legislature divided by the number
of days in that year.
Certain Active Duty Military and Veterans. A military veteran who was honorably discharged,is a
resident of the State, and who is disabled to a degree of 10% or more because of misfortune or while
serving during wartime may be entitled to a$5,000 reduction in the assessed value of his or her property.
This exemption is not limited to homestead property. A military veteran who was honorably discharged
with a service-related total and permanent disability may be eligible for a total exemption from taxes on
homestead property. A similar exemption is available to disabled veterans confined to wheelchairs.
Under certain circumstances, the veteran's surviving spouse may be entitled to carry over these
exemptions.
Certain Totally and Permanently Disabled Persons. Real estate used and owned as a homestead by a
quadriplegic, less any portion used for commercial purposes, is exempt from all ad valorem taxation.
Real estate used and owned as a homestead by a paraplegic,hemiplegic, or other totally and permanently
disabled person, who must use a wheelchair for mobility or who is legally blind,is exempt from taxation
if the gross household income is below statutory limits.
Survivors of First Responders. Any real estate that is owned and used as a homestead by the
surviving spouse of a first responder (law enforcement officer, correctional officer,firefighter, emergency
medical technician or paramedic), who died in the line of duty may be granted a total exemption on
homestead property if the first responder and his or her surviving spouse were permanent residents of
the State on January 1 of the year in which the first responder died.
Save Our Homes Portability Affected by Storm Damage (SOH). Owners of homestead property that
was significantly damaged or destroyed as a result of a named tropical storm or hurricane can elect to
have the property deemed abandoned if the owner establishes a new homestead by January 1 of the
second year immediately following the storm or hurricane. This will allow the owner of the homestead
25694/009/01626500.DOCv312
property to keep their SOH benefit if they move from the significantly damaged or destroyed property to
establish a new homestead by the end of the year following the storm.
Property Tax Relief for Natural Disasters. In light of the recent natural disasters, the state
legislature created a property tax relief credit for homestead parcels on which certain residential
improvements were damaged or destroyed by a hurricane that occurred in 2016 or 2017, namely
hurricanes Hermine, Matthew, and Irma. If the residential improvement is rendered uninhabitable for at
least 30 days due to a hurricane that occurred during the 2016 or 2017 calendar year, taxes initially levied
in 2019 may be abated. Due to this reduction in ad valorem tax revenue, the legislature is required to
appropriate funds to offset the deficit in certain taxing jurisdictions.
Recent Amendments Relating to Ad Valorem Taxation. In the 2016 legislative session, several
amendments were passed affecting ad valorem taxation, including classification of agricultural lands
during periods of eradication or quarantine, deleting requirements that conservation easements be
renewed annually, providing that just value of real property shall be determined in the first tax year for
income restricted persons age 65 or older who have maintained such property as the permanent residence
for at least 25 years, authorizing a first responder who is totally and permanently disabled as a result of
injuries sustained in the line of duty to receive relief from ad valorem taxes assessed on homestead
property, revising procedures with respect to assessments, hearings and notifications by the value
adjustment board,and revising the interest rate on unpaid ad valorem taxes.
Future Amendments Relating to Ad Valorem Taxation. Historically,various legislative proposals and
constitutional amendments relating to ad valorem taxation have been introduced in each session of the
State legislature. Many of these proposals have provided for new or increased exemptions to ad valorem
taxation and limited increases in assessed valuation of certain types of property or have otherwise
restricted the ability of local governments in the State to levy ad valorem taxes at then current levels.
Constitutional Limitations on New State Taxes and Fees
During the 2018 State legislative session,the State Legislature passed House Joint Resolution 7001
("HJR 7001"),including an amendment to the State Constitution providing that no state tax or fee may be
imposed, authorized, raised by the State Legislature, or authorized by the State Legislature to be raised,
except through legislation approved by two-thirds of the membership of each house of the Legislature.
The same requirement would apply to decreasing or eliminating any state tax, fee exemption or credit.
Previously,such actions could be approved by a majority vote. HJR 7001 also requires that any proposed
state tax or fee imposition, authorization or increase must be contained in a separate bill that contains no
other subject. The joint resolution specifies that the amendment does not authorize the imposition of any
state tax or fee otherwise prohibited by the State Constitution, and does not apply to any tax or fee
imposed by,or authorized to be imposed by, a county, municipality, school board, or special district. The
amendment in the HJR 7001 was approved by at least sixty percent of the voters during the 2018 general
election and was passed and signed into law by Governor Scott and will take effect on January 8, 2019.
Although the legislation will not subject local taxes and fees to the stricter voting requirement, local
governments could be adversely impacted during recessionary economic environments if State
lawmakers are unable to raise taxes. The County does not expect that HJR 7001 will have an impact on its
ability to pay debt service on the Series 2020 Bonds.
25694/009/01626500.DOCv313
APPENDIX B
FORM OF THE RESOLUTION
25694/009/01626500.DOCv3
APPENDIX C
AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2019
The statistical section referred to in the
opinion letter has been intentionally omitted
25694/009/01626500.DOCv3
APPENDIX D-1
FORM OF OPINION OF BOND COUNSEL
RELATING TO SERIES 2020A BONDS
25694/009/01626500.DOCv3
APPENDIX D-2
FORM OF OPINION OF BOND COUNSEL
RELATING TO SERIES 2020B BONDS
25694/009/01626500.DOCv3
APPENDIX E
FORM OF CONTINUING DISCLOSURE CERTIFICATE
25694/009/01626500.DOCv3