Agenda 04/12/2016 Item #11A 4/12/2016 11 .A.
EXECUTIVE SUMMARY
Recommendation to adopt a Resolution authorizing 1) the issuance of the Collier County Water-
Sewer District Water and Sewer Refunding Revenue Bond, Series 2016, in a principal amount not
to exceed$60,000,000 to refund the outstanding balance of the Collier County Water-Sewer District
Water and Sewer Revenue Bonds, Series 2006, to achieve debt service savings of approximately
$5.8 million; 2) awarding of the Series 2016 Bonds pursuant to a public bid; 3) the execution and
delivery of an escrow deposit agreement with US Bank and with The Arbitrage Group as the
Verification Agent; 4) the execution and delivery of a preliminary official statement, an official
statement and a continuing disclosure agreement; and(5)certain other matters.
OBJECTIVE: To refund the outstanding balance of the Collier County Water-Sewer District (District)
Water and Sewer Revenue Bonds Series 2006, to realize net present value debt service savings of
approximately$5.8 million.
CONSIDERATIONS: The County's Financial Advisors (PFM), identified opportunities in the current
market conditions to refund the outstanding balance of the District's Water Sewer Revenue Bonds Series
2006 to achieve significant debt service savings through July 1,2036. The finance committee met March
23,2016,and unanimously approved PFM's recommendation.
In accordance with Florida Statutes Section 218.385, the Series 2016 bonds shall be advertised for
competitive bids pursuant to the Official Notice of Sale,the form of which is attached to the Resolution as
Exhibit A. The District shall advertise and award the Series 2016 Bonds at the most advantageous time
and date, which shall be determined by the Board of County Commissioners' Chair upon advice of PFM.
FISCAL IMPACT: The net present value debt service savings as of March 21, 2016, is estimated at
$5.8 million (9.7 percent) (net of all issuance costs). The net present value debt service savings may
change on the day of pricing. The County has a savings threshold of a minimum of 5.0%.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney working with
outside bond counsel,is approved as to form and legality, and requires majority vote for approval. -JAK
GROWTH MANAGEMENT IMPACT: There is no Growth Management Plan impact associated with
this item.
RECOMMENDATION: That the Board of County Commissioners, Ex-officio Governing Board of the
Collier County Water-Sewer District, adopts a Resolution authorizing 1) the issuance of the Collier
County Water-Sewer District Water and Sewer Refunding Revenue Bond, Series 2016, in a principal
amount not to exceed $60,000,000 to refund the outstanding balance of the Collier County Water-Sewer
District Water and Sewer Revenue Bonds, Series 2006, to achieve debt service savings of approximately
$5.8 million; 2) awarding the sale of the Series 2016 Bonds pursuant to a public competitive bid; 3) the
execution and delivery of an escrow deposit agreement with US Bank and with The Arbitrage Group as
the Verification Agent; 4) the execution and delivery of a continuing disclosure agreement; (5) certain
other matters; and, 6)any necessary budget amendments.
Prepared By:
Joe Bellone,Director,Financial Operations Support Division,Public Utilities Department
Mark Isackson,Director Corporate Financial and Management Services, Office of Management&Budget
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Attachments:
1) Attachment A—Supplemental Bond Resolution
2) Exhibit A to the Resolution—Form of Official Notice of Sale
3) Exhibit C to the Resolution—From of Escrow Deposit
4) Exhibit D to the Resolution—From of Continuing Disclosure Certificate
5) Attachment B—Financial Analysis
6) Exhibit B to the Resolution—Form of Preliminary Official Statement(Due to the size of the
Statement,a web link is provided for viewing at:
http://apps3.collieraov.net/agenda/ftp/2016BCCMeetings/AgendaApri11216/PubUtilities/
Exhibit B Norm of Preliminary Official Statement).pdf(A hard copy is also available
at the County Manager's Office)
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4/12/2016 11.A.
COLLIER COUNTY
Board of County Commissioners
Item Number: 11.11.A.
Item Summary: Recommendation to adopt a Resolution authorizing 1)the issuance of
the Collier County Water-Sewer District Water and Sewer Refunding Revenue Bond, Series
2016, in a principal amount not to exceed $60,000,000 to refund the outstanding balance of the
Collier County Water-Sewer District Water and Sewer Revenue Bonds, Series 2006,to achieve
debt service savings of approximately$5.8 million; 2) awarding of the Series 2016 Bonds
pursuant to a public bid; 3)the execution and delivery of an escrow deposit agreement with US
Bank and with The Arbitrage Group as the Verification Agent; 4) the execution and delivery of a
preliminary official statement, an official statement and a continuing disclosure agreement; and
(5) certain other matters.
Meeting Date: 4/12/2016
Prepared By
Name: CyrConnie
Title: Operations Analyst, Solid&Hazardous Waste Management
4/1/2016 12:21:31 PM
Submitted by
Title: Division Director-Operations Support,Utilities Finance Operations
Name: Joseph Bellone
4/1/2016 12:21:33 PM
Approved By
Name: Joseph Bellone
Title: Division Director-Operations Support,Utilities Finance Operations
Date: 4/1/2016 1:30:32 PM
Name: YilmazGeorge
Title: Department Head-Public Utilities,Procurement Services
Date: 4/1/2016 1:43:59 PM
Name: KlatzkowJeff
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Title: County Attorney,
Date: 4/1/2016 2:14:08 PM
Name: IsacksonMark
Title: Division Director-Corp Fin&Mgmt Svc,Office of Management&Budget
Date: 4/1/2016 2:58:37 PM
Name: KlatzkowJeff
Title: County Attorney,
Date: 4/1/2016 3:12:39 PM
Name: CasalanguidaNick
Title: Deputy County Manager, County Managers Office
Date: 4/4/2016 9:47:57 AM
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RESOLUTION 2016- /CWS RESOLUTION 2016-
A RESOLUTION SUPPLEMENTING RESOLUTION NO.
CWS-85-13 IN CERTAIN RESPECTS, WHICH
RESOLUTION NO. CWS-85-13, AMONG OTHER
THINGS, RESTATED RESOLUTION NO. CWS-85-5 IN
ITS ENTIRETY AND AUTHORIZED THE ISSUANCE BY
THE COLLIER COUNTY WATER-SEWER DISTRICT OF
WATER AND SEWER REVENUE BONDS FROM TIME
TO TIME; AUTHORIZING THE CURRENT REFUNDING
OF ALL OF THE OUTSTANDING COLLIER COUNTY
WATER-SEWER DISTRICT WATER AND SEWER
REVENUE BONDS, SERIES 2006 IN ORDER TO
ACHIEVE DEBT SERVICE SAVINGS; AUTHORIZING
THE ISSUANCE OF NOT EXCEEDING $60,000,000
AGGREGATE PRINCIPAL AMOUNT OF COLLIER
COUNTY WATER-SEWER DISTRICT WATER AND
SEWER REFUNDING REVENUE BONDS, SERIES 2016
IN ORDER TO REFUND SUCH SERIES 2006 BONDS;
MAKING CERTAIN COVENANTS AND AGREEMENTS
WITH RESPECT TO SAID BONDS; AUTHORIZING THE
AWARDING OF SAID BONDS PURSUANT TO A
PUBLIC BID; DELEGATING CERTAIN AUTHORITY
TO THE CHAIRWOMAN FOR THE AWARD OF THE
BONDS AND THE APPROVAL OF THE TERMS AND
DETAILS OF SAID BONDS; AUTHORIZING THE
PUBLICATION OF A NOTICE OF SALE FOR THE
BONDS OR A SUMMARY THEREOF; AUTHORIZING
THE DISTRIBUTION OF A PRELIMINARY OFFICIAL
STATEMENT AND THE EXECUTION AND DELIVERY
OF AN OFFICIAL STATEMENT WITH RESPECT
THERETO; APPOINTING THE PAYING AGENT AND
REGISTRAR FOR SAID BONDS; AUTHORIZING THE
EXECUTION AND DELIVERY OF AN ESCROW
DEPOSIT AGREEMENT AND THE APPOINTMENT OF
AN ESCROW AGENT THERETO; ESTABLISHING A
BOOK-ENTRY SYSTEM OF REGISTRATION FOR THE
BONDS; AUTHORIZING THE EXECUTION AND
DELIVERY OF A CONTINUING DISCLOSURE
CERTIFICATE; AND PROVIDING AN EFFECTIVE
DATE.
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BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, ACTING AS THE EX-OFFICIO GOVERNING
BOARD OF THE COLLIER COUNTY WATER-SEWER DISTRICT:
SECTION 1. FINDINGS. It is hereby found and determined that:
(A) On July 30, 1985, the Board of County Commissioners of Collier County,
Florida, acting as the ex-officio governing board of the Collier County Water-Sewer
District (the "Issuer") duly adopted Resolution No. CWS-85-5, as amended and restated
by Resolution No. CWS-85-13 duly adopted on December 26, 1985, as amended and
supplemented (collectively, the "Resolution"), for the purposes described therein.
(B) The Issuer previously issued its Collier County Water-Sewer District Water
and Sewer Revenue Bonds, Series 2006 (the "Series 2006 Bonds") pursuant to the
Resolution for the purpose of financing and refinancing certain capital improvements to
the Issuer's System (as defined in the Resolution).
(C) There are currently Outstanding (as defined in the Resolution) under the
Resolution the Issuer's Water and Sewer Refunding Revenue Bond, Series 2009, Water
and Sewer Refunding Revenue Bond, Series 2013 and Water and Sewer Refunding
Revenue Bond, Series 2015 (collectively, the "Outstanding Parity Bonds").
(D) The Resolution provides for the issuance of Additional Bonds payable on a
parity under the Resolution with the Outstanding Parity Bonds for the purpose of current
refunding all the outstanding Series 2006 Bonds (the "Refunded Bonds"), upon meeting
certain requirements set forth in the Resolution.
(E) The Issuer deems it to be in its best interest to issue its Collier County
Water-Sewer District Water and Sewer Refunding Revenue Bonds, Series 2016 (the
"Series 2016 Bonds") for the principal purpose of current refunding the Refunded Bonds
in order to achieve debt service savings, which Series 2016 Bonds shall be issued on
parity with the Outstanding Parity Bonds, all in accordance with and pursuant to the
terms of the Resolution.
(F) For the payment and refunding of the Refunded Bonds, the Issuer shall, as
provided herein, deposit part of the proceeds derived from the sale of the Series 2016
Bonds, together with other legally available moneys of the Issuer, in an escrow deposit
trust fund to purchase direct U.S. Treasury obligations (the "Refunding Securities")
which shall be sufficient, together with investment earnings therefrom and a cash deposit,
to pay the Refunded Bonds as the same become due and payable or are redeemed prior to
maturity, all as provided herein and the hereinafter defined Escrow Deposit Agreement.
Subsequent to the defeasance of the Refunded Bonds, the Refunded Bonds shall no
longer be payable from or secured by the Pledged Funds (as defined in the Resolution)
pledged therefor pursuant to the Resolution.
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(G) In accordance with Section 218.385, Florida Statutes, and pursuant to this
Supplemental Resolution (as defined in the Resolution), the Series 2016 Bonds shall be
advertised for competitive bids pursuant to the Official Notice of Sale, the form of which
is attached hereto as Exhibit A (the "Official Notice of Sale").
(H) Pursuant to the Official Notice of Sale, any competitive bids received in
accordance with the Official Notice of Sale on or prior to the time and date determined by
the Chairwoman upon the advice of the Issuer's financial advisor, Public Financial
Management, Inc. (the "Financial Advisor"), in accordance with the terms and provisions
of the Official Notice of Sale, shall be publicly opened and announced.
(I) It is desirable for the Issuer to be able to advertise and award the Series
2016 Bonds at the most advantageous time and date which shall be determined by the
Chairwoman upon the advice of the Financial Advisor; and, accordingly, the Issuer
hereby determines to delegate the advertising and awarding of the Series 2016 Bonds to
the Chairwoman within the parameters described herein.
(J) It is necessary and appropriate that the Board determine certain parameters
for the terms and details of the Series 2016 Bonds and to delegate certain authority to the
Chairwoman for the award of the Series 2016 Bonds and the approval of the terms of the
Series 2016 Bonds in accordance with the provisions hereof, of the Resolution and of the
Official Notice of Sale.
(K) In the event Bond Counsel to the Issuer shall determine that the Series 2016
Bonds have not been awarded competitively in accordance with the provisions of Section
281.385, Florida Statutes, the Board shall adopt such resolutions and make such findings
as shall be necessary to authorize and ratify a negotiated sale of the Series 2016 Bonds in
accordance with said Section 218.385, Florida Statutes.
(L) The Issuer hereby certifies that it is current in all deposits into the various
funds and accounts established by the Resolution and all payments theretofore required to
have been deposited or made by the Issuer under the provisions of the Resolution have
been deposited or made and the Issuer has complied with the covenants and agreements
of the Resolution and is not currently in default under the Resolution.
(M) The Resolution provides that the Series 2016 Bonds shall mature on such
dates and in such amounts, shall bear such rates of interest, shall be payable in such
places and shall be subject to such redemption provisions as shall be determined by
Supplemental Resolution adopted by the Issuer; and it is now appropriate that the Issuer
set forth the parameters and mechanism to determine such terms and details.
(N) The Series 2016 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 and
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secured by a lien upon and pledge of the Pledged Funds, in the manner and to the extent
provided in the Resolution.
(0) The covenants, pledges and conditions in the Resolution shall be applicable
to the Series 2016 Bonds herein authorized and said Series 2016 Bonds shall be on a
parity with and rank equally as to the lien on and source and security for payment from
the Pledged Funds and in all other respects with the Outstanding Parity Bonds, and shall
constitute "Bonds" within the meaning of the Resolution.
SECTION 2. DEFINITIONS. When used in this Resolution, the terms
defined in the Resolution shall have the meanings therein stated, except as such
definitions may be hereinafter amended or defined.
SECTION 3. AUTHORITY FOR THIS SUPPLEMENTAL
RESOLUTION; AUTHORIZATION OF REFUNDING OF REFUNDED BONDS.
This Supplemental Resolution is adopted pursuant to the provisions of the Act and the
Resolution. The Issuer hereby authorizes the refunding of the Refunded Bonds in
accordance with the provisions hereof and of the Resolution in order to achieve debt
service savings.
SECTION 4. DESCRIPTION OF THE SERIES 2016 BONDS. The
Issuer hereby authorizes the issuance of a Series of Bonds in the aggregate principal
amount of not exceeding $60,000,000 to be known as the "Collier County Water-Sewer
District Water and Sewer Refunding Revenue Bonds, Series 2016" (or such other series
designation as the Chairwoman may determine), for the principal purpose of refunding
the Refunded Bonds. The aggregate principal amount of the Series 2016 Bonds to be
issued pursuant to the Resolution shall be determined by the Chairwoman provided such
aggregate principal amount does not exceed $60,000,000. The Series 2016 Bonds shall
be dated as of their date of delivery or such other date as the Chairwoman may determine,
shall be issued in the form of fully registered Bonds in denominations of $5,000 or any
integral multiple thereof, shall be numbered consecutively from one upward in order of
maturity preceded by the letter "R", shall bear interest from the dated date determined
therefor, payable semi-annually, on July 1 and January 1 of each year (the "Interest
Dates"), commencing on January 1, 2017, or such other dates as may be determined by
the Chairwoman.
Interest on the Series 2016 Bonds shall be payable by check or draft of U.S. Bank
National Association, Fort Lauderdale, Florida, as Paying Agent (the "Paying Agent"),
made payable and mailed to the Holder in whose name such Series 2016 Bonds 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 the applicable Interest Date, or,
at the request of such Holder, by bank wire transfer to the account of such Holder.
Principal of or Redemption Price, if applicable, on the Series 2016 Bonds is payable to
the Holder upon presentation, when due, at the designated corporate trust office of the
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Paying Agent. The principal of, Redemption Price, if applicable, and interest on the
Series 2016 Bonds are payable in lawful money of the United States of America. Interest
shall be calculated on the basis of a 360-day year consisting of twelve 30-day months.
The Series 2016 Bonds shall bear interest at such rates and yields, shall mature on
July 1 of each of the years and in the principal amounts corresponding to such years, and
shall have such redemption provisions as determined by the Chairwoman subject to the
conditions set forth in Sections 4, 5 and 6 hereof and the provisions of the Official Notice
of Sale. The final maturity of the Series 2016 Bonds shall not be later than July 1, 2036.
All of the terms of the Series 2016 Bonds will be included in a certificate to be executed
by the Chairwoman, or her designee, following the award of the Series 2016 Bonds (the
"Award Certificate") and shall be set forth in the final Official Statement, as described
herein.
SECTION 5. AWARD OF SERIES 2016 BONDS. The Chairwoman, on
behalf of the Issuer and only in accordance with the terms hereof and of the Official
Notice of Sale, shall award the Series 2016 Bonds to the underwriter or underwriters (the
"Underwriters") that submit a bid proposal which complies in all respects with the
Resolution, this Supplemental Resolution and the Official Notice of Sale and offers to
purchase the Series 2016 Bonds at the lowest true interest cost to the Issuer, as calculated
by the Issuer's Financial Advisor in accordance with the terms and provisions of the
Official Notice of Sale; provided, however, the Series 2016 Bonds shall not be awarded
to any bidder unless the net present value savings with respect to the refunding of the
Refunded Bonds (as calculated by the Issuer's Financial Advisor) is equal to or greater
than 5.00% of the principal amount of the Refunded Bonds. In accordance with the
provisions of the Official Notice of Sale, the Chairwoman may, in her sole discretion,
reject any and all bids.
SECTION 6. REDEMPTION PROVISIONS FOR SERIES 2016
BONDS. The Series 2016 Bonds may be redeemed prior to their respective maturities
from any moneys legally available therefor, upon notice as provided in the Resolution,
upon the terms and provisions as determined by the Chairwoman, in her discretion and
upon the advice of the Financial Advisor; provided, however, with respect to optional
redemption terms for the Series 2016 Bonds, if any, the first optional redemption date
may be no later than July 1, 2026 and there shall be no call premium relating to any
redemption. Terms Bonds may be established in accordance with the provisions of the
Official Notice of Sale. The redemption provisions for the Series 2016 Bonds, if any,
shall be set forth in the Award Certificate and in the final Official Statement.
Notwithstanding the foregoing, the Chairwoman, upon the advice of the Financial
Advisor, may determine to issue the Series 2016 Bonds without any optional redemption
provisions.
SECTION 7. FULL BOOK-ENTRY. Notwithstanding the provisions set
forth in Section 2.08 of the Resolution, the Series 2016 Bonds shall be initially issued in
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the form of a separate single certificated fully registered Series 2016 Bond for each of the
maturities of the Series 2016 Bonds. Upon initial issuance, the ownership of each such
Bond shall be registered in the registration books kept by the Registrar in the name of
Cede & Co., as nominee of The Depository Trust Company ("DTC"). As long as the
Series 2016 Bonds are registered in the name of Cede & Co., all of the Outstanding
Series 2016 Bonds shall be registered in the registration books kept by the Registrar in
the name of Cede & Co., all payments of principal on the Series 2016 Bonds shall be
made by the Paying Agent by check or draft or by bank wire transfer to Cede & Co., as
Holder of the Series 2016 Bonds, upon presentation of the Series 2016 Bonds to be paid,
to the Paying Agent.
With respect to Series 2016 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 Series
2016 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 Series 2016 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 any, or interest on the Series 2016 Bonds. The Issuer, the Registrar
and the Paying Agent may treat and consider the Person in whose name each Series 2016
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 any, 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 any, and interest on the Series 2016
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 of, Redemption
Price, if any, and interest on the Series 2016 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 any, and interest pursuant to the
provisions of the 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 the Resolution with respect to transfers during the 15 days
next preceding an Interest Date or first mailing of notice of redemption, the words "Cede
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& Co." in this Supplemental Resolution shall refer to such new nominee of DTC; and
upon receipt of such notice, the Issuer shall promptly deliver a copy of the same to the
Registrar and the Paying Agent.
Upon (A) receipt by the Issuer of written notice from DTC (i) to the effect that a
continuation of the requirement that all of the outstanding Series 2016 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 Series 2016
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 with all applicable
policies and procedures of DTC regarding discontinuing the book-entry only registration
system, the Series 2016 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 the Resolution. In such event, the Issuer shall issue and the
Registrar shall authenticate, transfer and exchange the Series 2016 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 Issuer Letter of Representations previously executed by the Issuer and delivered
to DTC shall apply to the payment of principal of, premium, if any, and interest on the
Series 2016 Bonds.
SECTION 8. APPLICATION OF SERIES 2016 BOND PROCEEDS.
The proceeds derived from the sale of the Series 2016 Bonds shall be applied by the
Issuer as follows:
(A) A sufficient amount of the Series 2016 Bond proceeds shall be deposited
irrevocably in trust in the escrow deposit trust fund established under the terms and
provisions of the Escrow Deposit Agreement, dated as of the dated date of the Series
2016 Bonds (the "Escrow Deposit Agreement"), between the Issuer and U.S. Bank
National Association, Fort Lauderdale, Florida, as Escrow Agent, and, other than a cash
deposit, shall be invested, together with other legally available moneys of the Issuer, in
Refunding Securities in the manner set forth in the Escrow Deposit Agreement, which
investments shall mature at such times and in such amounts as shall be sufficient to pay
the principal of redemption premium, if any, and interest on the Refunded Bonds as the
same become due and payable whether at maturity or upon earlier redemption. Subject to
the issuance and delivery of the Series 2016 Bonds, the Refunded Bonds shall be
redeemed on July 1, 2016, or such later date as shall be approved by the Chairwoman,
upon the advice of the Financial Advisor.
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(B) A sufficient amount of the Series 2016 Bond proceeds shall be applied to
the payment of costs and expenses relating to the issuance of the Series 2016 Bonds.
Any Series 2016 Bond Proceeds that remain after all costs of issuance have been paid
shall be transferred to the Interest Account and used to pay interest on the Series 2016
Bonds.
SECTION 9. TRANSFER OF CERTAIN MONEYS. The Refunded
Bonds will be refunded from proceeds of the Series 2016 Bonds and other legally
available moneys of the Issuer. Any excess moneys on deposit in the funds or accounts
established pursuant to the Resolution not required by the terms of the Resolution or this
Supplemental Resolution to be on deposit therein or in any other fund or account upon
the issuance of the Series 2016 Bonds shall be transferred to the escrow deposit trust fund
established pursuant to the Escrow Deposit Agreement.
SECTION 10. PRELIMINARY OFFICIAL STATEMENT. The Issuer
hereby authorizes the distribution and use of the Preliminary Official Statement in
substantially the form attached hereto as Exhibit B in connection with the offering of the
Series 2016 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, the Chairwoman and the County Manager are each
hereby authorized to approve such insertions, changes and modifications. The
Chairwoman and the County Manager are each 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
the Chairwoman or the County Manager deeming the Preliminary Official Statement
"final" as described above shall be conclusive evidence of the approval of any insertions,
changes or modifications.
SECTION 11. OFFICIAL STATEMENT. The form, terms and provisions
of the Official Statement relating to the Series 2016 Bonds shall be substantially as set
forth in the Preliminary Official Statement and shall include all of the specific financial
terms of the Series 2016 Bonds. Subject in all respects to the award of the Series 2016
Bonds in accordance with this Supplemental Resolution and the Official Notice of Sale,
the Chairwoman is hereby authorized and directed to execute and deliver said Official
Statement in the name and on behalf of the Issuer, and thereupon to cause such Official
Statement to be delivered to the Underwriters with such changes, amendments,
modifications, omissions and additions as may be approved by the Chairwoman. Said
Official Statement, including any such changes, amendments, modifications, omissions
and additions as approved by the Chairwoman and the information contained therein are
hereby authorized to be used in connection with the sale of the Series 2016 Bonds to the
public. Execution by the Chairwoman of the Official Statement shall be deemed to be
conclusive evidence of approval of such changes.
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SECTION 12. OFFICIAL NOTICE OF SALE. The form of the Official
Notice of Sale attached hereto as Exhibit A and the terms and provisions thereof are
hereby authorized and approved. The Chairwoman is hereby authorized to make such
changes, insertions and modifications as she shall deem necessary prior to the
advertisement of such Official Notice of Sale or a summary thereof. The Chairwoman is
hereby authorized to cause the advertisement and publication of the Official Notice of
Sale or a summary thereof at such time as she shall deem necessary and appropriate, upon
the advice of the Issuer's Financial Advisor, to accomplish the competitive sale of the
Series 2016 Bonds.
SECTION 13. APPOINTMENT OF PAYING AGENT AND
REGISTRAR. Subject in all respects to the award of the Series 2016 Bonds in
accordance with this Supplemental Resolution and the Official Notice of Sale, U.S. Bank
National Association, Fort Lauderdale, Florida, is hereby designated Registrar and
Paying Agent for the Series 2016 Bonds. The Chairwoman and/or the Clerk are hereby
authorized to enter into any agreement which may be necessary to effect the transactions
contemplated by this Section 13 and by the Resolution.
SECTION 14. AUTHORIZATION TO EXECUTE ESCROW DEPOSIT
AGREEMENT. Subject in all respects to the award of the Series 2016 Bonds in
accordance with this Supplemental Resolution and the Official Notice of Sale, the Issuer
hereby authorizes and directs the Chairwoman to execute, and the Clerk to attest, the
Escrow Deposit Agreement and to deliver the Escrow Deposit Agreement to U.S. Bank
National Association, Fort Lauderdale, Florida, which is hereby appointed as Escrow
Agent thereunder. All of the provisions of the Escrow Deposit Agreement when
executed and delivered by the Issuer as authorized herein and when duly authorized,
executed and delivered by the Escrow Agent, shall be deemed to be a part of this
Supplemental Resolution as fully and to the same extent as if incorporated verbatim
herein, and the Escrow Deposit Agreement shall be in substantially the form of the
Escrow Deposit Agreement attached hereto as Exhibit C with such changes, amendments,
modifications, omissions and additions, including the date of such Escrow Deposit
Agreement, as may be approved by said Chairwoman. Execution by the Chairwoman of
the Escrow Deposit Agreement shall be deemed to be conclusive evidence of approval of
such changes. The Chairwoman and the Clerk are hereby authorized and directed to
execute and file all documents necessary to purchase or subscribe to the Refunding
Securities on behalf of the Issuer.
SECTION 15. SECONDARY MARKET DISCLOSURE. Subject in all
respects to the award of the Series 2016 Bonds in accordance with this Supplemental
Resolution and the Official Notice of Sale, 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 Securities and Exchange Commission (the "Rule"),
it will comply with and carry out all of the provisions of the Continuing Disclosure
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Certificate to be executed by the Issuer and dated the date of delivery of the Series 2016
Bonds, as it may be amended from time to time in accordance with the terms thereof.
The Continuing Disclosure Certificate shall be substantially in the form attached hereto
as Exhibit D with such changes, amendments, modifications, omissions and additions as
shall be approved by the Chairwoman who is hereby authorized to execute and deliver
such Certificate. Notwithstanding any other provision of the Resolution, failure of the
Issuer to comply with such Continuing Disclosure Certificate shall not be considered an
Event of Default under the Resolution; provided, however, any Series 2016 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 15 and the Continuing Disclosure Certificate. For purposes of this
Section 15, "Series 2016 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 Series 2016 Bonds (including persons holding Series 2016 Bonds through nominees,
depositories or other intermediaries), or (B) is treated as the owner of any Series 2016
Bonds for federal income tax purposes.
SECTION 16. GENERAL AUTHORITY. The members of the Board, the
County Manager, the Clerk and the officers, attorneys and other agents or employees of
the Issuer are hereby authorized to do all acts and things required of them by this
Supplemental Resolution, the Resolution, the Official Notice of Sale, the Official
Statement, the Escrow Deposit Agreement or the Continuing Disclosure Certificate or
desirable or consistent with the requirements hereof or the Resolution, the Official Notice
of Sale, the Official Statement, the Escrow Deposit Agreement or the Continuing
Disclosure Certificate for the full punctual and complete performance of all the terms,
covenants and agreements contained herein or in the Series 2016 Bonds, the Resolution,
the Official Notice of Sale, the Official Statement, the Escrow Deposit Agreement and
the Continuing Disclosure Certificate and each member, employee, attorney and officer
of the Issuer or the Board and the Clerk is hereby authorized and directed to execute and
deliver any and all papers and instruments and to do and cause to be done any and all acts
and things necessary or proper for carrying out the transactions contemplated hereunder.
If the Chairwoman is unavailable or unable at any time to perform any duties or functions
hereunder, including but not limited to those described in Sections 4, 5 and 6 hereof, the
Vice-Chairman is hereby authorized to act on his or her behalf. Bond Counsel and the
Issuer's Financial Advisor are hereby authorized and directed to take all action necessary
and desirable to carry-out the intent and purposes of this Supplemental Resolution,
including but not limited to, taking such action as is necessary and desirable to procure
the Refunding Securities.
SECTION 17. SEVERABILITY AND INVALID PROVISIONS. If any
one or more of the covenants, agreements or provisions herein contained shall be held
contrary to any express provision of law or contrary to the policy of express law, though
not expressly prohibited or against public policy, or shall for any reason whatsoever be
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held invalid, then such covenants, agreements or provisions shall be null and void and
shall be deemed separable from the remaining covenants, agreements or provisions and
shall in no way affect the validity of any of the other provisions hereof or of the Series
2016 Bonds.
SECTION 18. RESOLUTION TO CONTINUE IN FORCE. Except as
herein expressly provided, the Resolution and all the terms and provisions thereof are and
shall remain in full force and effect.
SECTION 19. EFFECTIVE DATE. This Supplemental Resolution shall
become effective immediately upon its adoption.
DULY ADOPTED this 12th day of April, 2016.
ATTEST: BOARD OF COUNTY COMMISSIONERS
DWIGHT E. BROCK, CLERK COLLIER COUNTY, FLORIDA, AS THE EX-
OFFICIO CHAIRWOMAN OF THE
GOVERNING BOARD OF THE COLLIER
COUNTY WATER-SEWER DISTRICT
By: By:
Derek Johnssen, Deputy Clerk Donna Fiala, Chairwoman
Approved as to form
and legality:
Jeffrey A. Klatzkow
County Attorney
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EXHIBIT A
FORM OF OFFICIAL NOTICE OF SALE
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EXHIBIT B
FORM OF PRELIMINARY OFFICIAL STATEMENT
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EXHIBIT C
FORM OF ESCROW DEPOSIT AGREEMENT
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EXHIBIT D
FORM OF CONTINUING DISCLOSURE CERTIFICATE
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OFFICIAL NOTICE OF SALE
$50,475,000*
Collier County Water-Sewer District
Water and Sewer Refunding Revenue Bonds,
Series 2016
Electronic Bids, as Described Herein, Will Be Accepted Until
10:00 a.m. Eastern Daylight Savings Time, April 26, 2016*
*Preliminary, subject to change.
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OFFICIAL NOTICE OF SALE
$50,475,000*
Collier County Water-Sewer District
Water and Sewer Refunding Revenue Bonds,
Series 2016
NOTICE IS HEREBY GIVEN that electronic bids will be received in the manner, on the
date and up to the time specified below:
DATE: April 26, 2016*
TIME: 10:00 a.m. Eastern Daylight Savings Time*
ELECTRONIC BIDS: May be submitted only through Ipreo's 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 $50,475,000* Collier County
Water-Sewer District Water and Sewer Refunding Revenue Bonds, Series 2016 (the
"Bonds") to be issued by Collier County Water-Sewer District (the "District") pursuant to
the terms and conditions of Resolution No. CWS-85-13, adopted by the Board of County
Commissioners of Collier County, Florida, acting as the ex-officio governing board of the
District (the "Governing Body") on December 26, 1985, as amended and supplemented,
particularly as supplemented by Resolution No. 2016- /CWS Resolution No. 2016-
adopted by the Governing Body on April 12, 2016 (collectively, the "Bond
Resolution"). Such bids will be opened in public in accordance with applicable legal
requirements.
The Bond proceeds will be used to refund all of the District's outstanding Collier
County Water-Sewer District Water and Sewer Revenue Bonds, Series 2006 and to pay
costs of issuing the Bonds.
The Bonds are more particularly described in the Preliminary Official Statement
dated April , 2016 (the "Preliminary Official Statement") relating to the Bonds,
available from the District's financial advisor, Public Financial Management, Inc. 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.
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Prior to accepting bids, the District reserves the right to change the principal
amount of the Bonds being offered and the terms of the Bonds, to postpone the sale to a
later date or time, or cancel the sale. Notice of a change or cancellation will be
announced via The Bond Buyer news service at the internet website address
www.tm3.com, not later than 12:00 p.m., 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 District 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 District 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 District 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 District is using the Parity System as a communication mechanism, and not as the
District's agent, to conduct the electronic bidding for the Bonds. The District 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 District 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 District's Financial Advisor, Public Financial Management, Inc., at
786-671-7480 or masvidals @pfm.com. The District 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 District
shall have no liability with respect thereto.
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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 May 26,
2016), will be issued in denominations of $5,000 or integral multiples thereof, will bear
interest from their dated date until paid at the annual rate or rates specified by the
successful bidder, subject to the limitations specified below, payable as shown on the
Summary Table set forth herein. Interest will be computed on the basis of a 360-day year
of twelve 30-day months. The Bonds must meet the minimum and maximum coupon and
reoffering price criteria shown in the Summary Table on a maturity and aggregate basis.
The Bonds will mature on the dates, in the years and principal amounts shown on
the Summary Table as serial bonds except as otherwise combined into term bonds as
described under "STRUCTURE" below.
STRUCTURE
Any two to five consecutive maturities of the Bonds 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 are subject to redemption in whole or in part, at any time, on or after
July 1, 2026, in such order of maturities as may be determined by the District (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.
SECURITY
Bonds will be payable from and will be secured by a pledge of and lien upon the
Pledged Funds (as defined in the Bond Resolution) which include the Net Revenues (as
defined in the Bond Resolution) and other amounts derived from the operation of the
System (as defined in the Bond Resolution), and moneys on deposit in certain funds and
accounts established under the Bond Resolution, on a parity with the District's Water and
Sewer Refunding Revenue Bond, Series 2009, Water and Sewer Refunding Revenue
Bond, Series 2013, Water and Sewer Refunding Revenue Bond, Series 2015 and any
Additional Bonds (as defined in the Bond Resolution) subsequently issued pursuant to the
Bond Resolution (collectively, the "Parity Bonds"), all in the manner and to the extent
provided in the Bond Resolution and as described in the Preliminary Official Statement.
See the Preliminary Official Statement for more information regarding the security
for the Bonds.
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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: May 26,2016*
Interest Payment Dates: July 1 and January 1,commencing July 1,2016
Principal Payment Dates(July 1):
Year* Principal Amount*
2029 $5,285,000
2030 5,550,000
2031 5,830,000
2032 6,120,000
2033 6,425,000
2034 6,745,000
2035 7,085,000
2036 7,435,000
Interest Calculation: 360-day year of twelve 30-day months
Ratings: Moody's:_
Fitch:
Bidding Parameters
Sale Date: April 26,2016*
Bidding Method: The 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
Bid Award: As soon as practicable on day of sale
Good Faith Deposit: $500,000; See"GOOD FAITH DEPOSIT"herein
Coupon Multiples: 1/8 or 1/20 of 1%
Optional Redemption: Yes,on or after July 1,2026
Term Bonds: Yes,at bidder's option. See"STRUCTURE"herein.
Maximum Reoffering Price: Maturity Unlimited(minimum coupons of 5.00%)
Aggregate Unlimited
Minimum Reoffering Price: Maturity 100%(minimum coupons of 5.00%)
Aggregate 100%
Insurance: None
Adjustment Parameters(As required to optimize the refunding)
Principal Increases: Maturity Unlimited
Aggregate 15.0%
Principal Reductions: Maturity Unlimited(including elimination of one or more maturities)
Aggregate 15.0%
*Preliminary,subject to change.
**May be combined into term bonds. See"STRUCTURE"herein.
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ADJUSTMENT OF AMOUNTS AND MATURITIES
The aggregate principal amount of each maturity of Bonds is subject to adjustment
by the District 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 District may cancel the sale of the Bonds or adjust the aggregate principal
amount. The District 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 District will consult with the successful bidder before
adjusting the amount of any maturity of the Bonds or canceling the Bonds; however, the
District reserves the sole right to make adjustments, within the limits described above, or
cancel the sale of the Bonds.
Adjustment to the size of the Bonds within the limits described above does not
relieve the purchaser from its obligation to purchase all of the Bonds offered by the
District.
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 District expects that changes may be made that are necessary to increase or
decrease the principal amount of the Bonds to meet the District's funding objectives, all
subject to the limitations set forth above.
In the event that the principal amount of any maturity of the Bonds is revised after
the award, the interest rate and reoffering price for each maturity and the Underwriter's
Discount on the Bonds as submitted by the successful bidder shall be held constant. The
"Underwriter's Discount" shall be defined as the difference between the purchase price of
the Bonds submitted by the bidder and the price at which the Bonds will be issued to the
public, calculated from information provided by the bidder, divided by the par amount of
the Bonds bid.
FORM AND PAYMENT
The Bonds will be issued in fully registered, book-entry only form and a bond
certificate for each maturity will be issued to The Depository Trust Company, New York,
New York ("DTC"), registered in the name of its nominee, Cede & Co. A book-entry
system will be employed, evidencing ownership of the Bonds, with transfers of
ownership effected on the records of DTC and its participants pursuant to rules and
procedures adopted by DTC and its participants. The successful bidder, as a condition to
delivery of the Bonds, will be required to deposit the Bond certificates with DTC or the
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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 U.S. Bank National
Association, Fort Lauderdale, Florida, the paying agent and registrar (the "Paying Agent"
or 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
District nor the Registrar will be responsible or liable for payments by DTC to its
participants or by DTC participants to beneficial owners or for maintaining, supervising
or reviewing the records maintained by DTC, its participants or persons acting through
such participants.
Principal of, and premium, if any, on the Bonds will be payable upon presentation
and surrender thereof at the designated corporate office of the Registrar on the dates, in
the years and amounts established in accordance with the award of the Bonds. Interest on
the Bonds is payable on the dates shown in the Summary Table. The Paying Agent will
mail interest payments on the Bonds on each interest payment date to the owners of the
Bonds at the addresses listed on the registration books maintained by the Registrar for
such purpose at the close of business on the date which shall be the fifteenth day (whether
or not a business day) of the calendar month next proceeding the applicable payment
date, as described in the Bond Resolution. So long as DTC or its nominee is the
registered owner of the Bonds, payments of principal, interest and any redemption
premium on the Bonds will be made by the Paying Agent to DTC or its nominee.
PRELIMINARY OFFICIAL STATEMENT AND FINAL OFFICIAL
STATEMENT
The District 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 District as required by Rule 15c2-12 of
the Securities and Exchange Commission. The District 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 Public Financial
Management, Inc., Financial Advisor to the District, 255 Alhambra Circle, Suite 404,
Coral Gables, Florida 33134, Phone 786-671-7480, Fax 305-448-7131 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
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respect to the Bonds as that term is defined in Rule 15c2-12. The District shall furnish at
its expense within seven (7) business days after the Bonds have been awarded to the
successful bidder no more than 200 copies of the final Official Statement. Additional
copies of the Official Statement may be provided at the request and expense of the
winning bidder. If the Bonds are awarded to a syndicate, the District will designate the
senior managing underwriter of the syndicate as its agent for purposes of distributing
copies of the Official Statement to each participating underwriter. Any underwriter
submitting a bid with respect to the Bonds agrees thereby that if its bid is accepted, it
shall accept such designation and shall enter into a contractual relationship with all
participating underwriters for the purpose of assuring the receipt and distribution by each
participating underwriter of the Official Statement.
LEGAL OPINIONS
The Bonds will be sold subject to the opinion of Nabors, Giblin & Nickerson,
P.A., the District'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 District by Jeffrey A. Klatzkow, Esq., County
Attorney and Bryant Miller Olive P.A., the District's Disclosure Counsel.
A legal opinion (or reliance letter thereon) of Bryant Miller Olive P.A., Tampa,
Florida, Disclosure Counsel, and a legal opinion of Jeffrey A. Klatzkow, Esq., County
Attorney, with respect to certain matters concerning the Official Statement will be
furnished without charge to the successful bidder at the time of delivery of the Bonds.
BIDDING PROCEDURE; OFFICIAL BID FORMS
Only electronic bids submitted via 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 District will be accepted. Bidders are permitted to submit bids
for the Bonds during the bidding time period, provided they are eligible to bid as
described under "GENERAL" above.
Each electronic bid submitted via 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 District. All bids remain firm
until an award is made. The successful bidder must confirm the details of such bid by a
signed Official Confirmation of Bid Form delivered by fax to Public Financial
Management, Inc. at 305-448-7131or by email (PDF) to masvidals @pfm.com no later
than one hour after being notified by the District of being the winning bidder, the original
of which must be received by Public Financial Management, Inc., Financial Advisor to
the District on the following business day at 255 Alhambra Circle, Suite 404, Coral
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Gables, FL 33134. Failure to deliver the form does not relieve the bidder of the
obligation to purchase the Bonds.
FORM OF BID
Bidders must bid to purchase all maturities of the Bonds. Each bid must specify
(1) an annual rate of interest for each maturity, (2) reoffering price or yield for each
maturity and (3) a dollar purchase price for the entire issue of the Bonds. No more than
one (1)bid from any bidder will be considered.
A bidder must specify the rate or rates of interest per annum (with no more than
one rate of interest per maturity), which the Bonds are to bear, to be expressed in
multiples of 1/8 or 1/20 of 1%. Any number of interest rates may be named, but the
Bonds of each maturity must bear interest at the same single rate for all bonds of that
maturity. Coupons must be a minimum rate of 5.00% per annum.
Each bid for the Bonds must meet the minimum and maximum coupon criteria and
minimum and maximum reoffering price criteria shown in the Summary Table on a
maturity and aggregate basis.
Each bidder must specify, as part of its bid, the prices or yields at which a
substantial amount (i.e., at least 10%) of the Bonds of each maturity will be offered and
sold to the public. Reoffering prices presented as a part of the bids will not be used in
computing the bidder's true interest cost. As promptly as reasonably possible after bids
are received, the District will notify the successful bidder that it is the apparent winner.
AWARD OF BID
The District 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 District 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 District. 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 District 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 District shall be final and binding
upon all bidders with respect to the form and adequacy of any proposal received and as in
its conformity to the terms of this Official Notice of Sale.
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RIGHT OF REJECTION
The District 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 District 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 District and the successful bidder. Payment
for the Bonds must be made in Federal Funds or other funds immediately available to the
District 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 District intends to conduct the closing in Naples, Florida.
RIGHT OF CANCELLATION
The successful bidder will have the right, at its option, to cancel its obligation to
purchase the Bonds if the Registrar fails to authenticate the Bonds and tender the same
for delivery within 60 days from the date of sale thereof, and in such event the successful
bidder will be entitled to the return of the Good Faith Deposit accompanying its bid.
GOOD FAITH DEPOSIT
The successful bidder for the Bonds is required to submit its Good Faith Deposit
to the District 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 District 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: Collier County BOCC-Concentration Account
Acct. #: 1056407
REF: 2016 Water and Sewer District Closing
Attention: Ronald S. Dortch
The Good Faith Deposit so wired will be retained by the District 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 District 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 District will pay no interest on the good faith deposit. The balance of the purchase
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price must be wired in federal funds to the account detailed in the closing memorandum
provided by the District to the successful purchaser, simultaneously with delivery of such
Bonds.
CUSIP NUMBERS
It is anticipated that CUSIP numbers will be printed on the Bonds, but neither
failure to print such numbers on any Bonds nor any error with respect thereto will
constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and
pay for the Bonds. Bond Counsel will not review or express any opinion as to the
correctness of such CUSIP numbers. The policies of the CUSIP Service Bureau will
govern the assignment of specific numbers to the Bonds. The successful bidder will be
responsible for applying for and obtaining CUSIP numbers for the Bonds. All expenses
in relation to the printing of CUSIP numbers on the Bonds will be paid for by the
District; 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 District 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 District 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
District shall not be required to consent to suit or to service of process in any jurisdiction.
DISCLOSURE OBLIGATIONS OF THE PURCHASER
Section 218.38(1)(b)(2), Florida Statutes, requires that the successful purchaser
file a statement with the District containing information with respect to any fee, bonus or
gratuity paid, in connection with the Bonds, by any underwriter or financial consultant to
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.
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The successful purchaser will be required to submit to the District prior to closing
a certification to the effect that (i) all of the Bonds have been subject of a bona fide initial
offering to the public (excluding bond houses, brokers or similar persons or organizations
acting in the capacity of underwriters or wholesalers) at prices no higher than, or yields
no lower than, those shown on the inside cover of the Official Statement relating to the
Bonds, (ii) to the best of their knowledge, and based on their records and other
information available to them which they believe to be correct, at least 10 percent of each
maturity of the Bonds were sold to the public (excluding bond houses, brokers or similar
persons or organizations acting in the capacity of underwriters or wholesalers) at initial
offering prices not greater than or yields not lower than the respective prices or yields
shown on the inside cover of the Official Statement, and (iii) at the time they agreed to
purchase the Bonds, based upon their assessment of the then prevailing market
conditions, they had no reason to believe any of the Bonds would be sold to the public
(excluding bond houses, brokers or similar persons or organizations acting in the capacity
of underwriters or wholesalers) at prices greater than or yields lower than the respective
prices or yields shown on the inside cover of the Official Statement.
CONTINUING DISCLOSURE
The District 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 District 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 District will deliver to the purchaser of the Bonds a certificate of an official of
the District, 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 District.
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
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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.
COLLIER COUNTY WATER-SEWER
DISTRICT
By: /s/Donna Fiala
Chairwoman, Board of County
Commissioners of Collier County, Florida, as
the Ex-Officio Chairwoman of the Governing
Board of the Collier County Water-Sewer
District
Dated: April 14, 2016
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EXHIBIT A
TRUTH-IN-BONDING STATEMENT
April , 2016
Board of County Commissioners
of Collier County, Florida, as the Ex-Officio
Governing Board of the Collier County
Water-Sewer District
Re: Collier County Water-Sewer District Water and Sewer Refunding
Revenue Bonds, Series 2016
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 District is proposing to issue $ principal amount of the
above-referenced Bonds for the principal purposes of refunding certain outstanding debt
of the District, 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 are special limited obligations of the District. The principal
source of repayment or security for the Bonds is certain net revenues and other amounts
derived from the operation of the System (as described in the Official Statement for the
Bonds). Authorizing this debt will result in approximately $ (representing
the average annual debt service with respect to the Bonds) of such moneys being used to
pay debt service on the Bonds each year for years.
The foregoing is provided for infoiiiiation purposes only and shall not affect or
control the actual terms and conditions of the Bonds.
Very truly yours,
Underwriter
By:
Authorized Signatory
•
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OFFICIAL CONFIRMATION OF BID FORM
$50,475,000*
Collier County Water-Sewer District
Water and Sewer Refunding Revenue Bonds, Series 2016
The undersigned hereby offer to purchase all of the Collier County Water-Sewer
District Water and Sewer Refunding Revenue Bonds, Series 2016 (the "Bonds"), to be
dated as of the date of delivery (expected to be May 26, 2016), described in the attached
Official Notice of Sale and the Preliminary Official Statement referred to therein, which
by reference is made part of this bid, for all but not less than all of said Bonds and will
pay therefor, at the time of delivery, in immediately available Federal Reserve Funds
FIVE HUNDRED THOUSAND AND 00/100 Dollars ($500,000.00), bearing interest at
the following rates per annum:
Year Principal Interest Reoffering
(July 1)* Amount* Rate Price or Yield
2029** $5,285,000
2030** 5,550,000
2031** 5,830,000
2032** 6,120,000
2033** 6,425,000
2034** 6,745,000
2035** 7,085,000
2036** 7,435,000
* Preliminary,subject to change.
**May be combined into term bonds. See"STRUCTURE"herein.
Any two to five consecutive maturities of the Bonds bearing interest at the same
rate may be combined 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.
The principal installments for the Bonds indicated above shall be applied for the
mandatory retirement of Term Bonds maturing in the years and amounts and bearing
interest as follows:
$ Term Bonds maturing on July 1, at %per annum to yield %per annum
$ Term Bonds maturing on July 1, at %per annum to yield %per annum
$ Term Bonds maturing on July 1, at %per annum to yield %per annum
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GOOD FAITH DEPOSIT
In accordance with the attached Official Notice of Sale, if we are selected as the
winning bidder, we will provide a good faith deposit by wire transfer in federal funds no
later than 2:30 p.m. on the date of the award in the amount of FIVE HUNDRED
THOUSAND AND 00/100 Dollars ($500,000.00) as described in the attached Official
Notice of Sale.
MISCELLANEOUS
This proposal is not subject to any conditions not expressly stated herein or in the
attached Official Notice of Sale. Receipt and review of the Preliminary Official
Statement relating to the Bonds is hereby acknowledged. The names of the underwriters
or member of the account or joint bidding account, if any, who are associated for the
purpose of this Proposal are listed either below or on a separate sheet attached hereto.
TRUTH IN BONDING STATEMENT
Prior to an award, the successful bidder must complete, sign and deliver with this
Official Confirmation of Bid Form the Truth in Bonding Statement which is attached to
the Official Notice of Sale as Exhibit A. The District reserves the right to assist the
bidder in correcting any inconsistencies or inaccuracies set forth in such Truth in
Bonding Statement. The District may waive any inconsistencies or inaccuracies relating
to such Statements and any such waived inconsistencies or inaccuracies shall not
adversely affect the bid.
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Furthermore, pursuant to Section 218.386, Florida Statutes, the names, addresses
and estimated amounts of compensation of any person who has entered into an
understanding with the underwriters or, to the managing underwriter's knowledge, the
District, or both, for any paid or promised compensation or valuable consideration,
directly or indirectly, expressly or implied, to act solely as an intermediary between the
District and managing underwriter or who exercises or attempts to exercise any influence
to effect any transaction in the purchase of the Bonds are set forth below in the space
provided. If no information is provided below, the District shall presume no
compensation was or will be paid.
Senior Manager:
Address
Authorized Signature:
City State Zip Code
Printed Name:
Telephone Number
Facsimile Number
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ESCROW DEPOSIT AGREEMENT
ESCROW DEPOSIT AGREEMENT, dated as of May , 2016, by and
between COLLIER COUNTY WATER-SEWER DISTRICT (the "District"), and
U.S. BANK NATIONAL ASSOCIATION (the "Escrow Agent"), a national banking
association existing under the laws of the United States of America, having its designated
place of business in Fort Lauderdale, Florida, the address of which is 550 West Cypress
Road, Suite 380, Fort Lauderdale, Florida 33309, as escrow agent hereunder.
WHEREAS, the District has heretofore issued its Collier County Water-Sewer
District Water and Sewer Revenue Bonds, Series 2006 (the "Series 2006 Bonds")
pursuant to Resolution No. CWS-85-5 adopted on July 30, 1985, as amended and restated
by Resolution No. CWS-85-13 adopted on December 26, 1985, as amended and
supplemented (collectively, the "Resolution"); and
WHEREAS, the District has determined to exercise its option under the
Resolution to current refund all of the outstanding Series 2006 Bonds (the "Refunded
Bonds"), as described on Schedule A attached hereto; and
WHEREAS, the District has determined to issue its $ aggregate
principal amount of Collier County Water-Sewer District Water and Sewer Refunding
Revenue Bonds, Series 2016 (the "Series 2016 Bonds") pursuant to the Resolution, a
portion of the proceeds of which Series 2016 Bonds will be used to purchase certain
United States Treasury obligations in order to provide payment for the Refunded Bonds
and discharge and satisfy the pledge of the Pledged Funds (as defined in the Resolution)
and the covenants, agreements and other obligations of the District under the Resolution
in regard to such Refunded Bonds; and
WHEREAS, the issuance of the Series 2016 Bonds, the purchase by the Escrow
Agent of the hereinafter defined Escrow Securities, the deposit of such Escrow Securities
into an escrow deposit trust fund to be held by the Escrow Agent and the discharge and
satisfaction of the pledge of the Pledged Funds and the covenants, agreements and other
obligations of the District under the Resolution in regard to the Refunded Bonds shall
occur as a simultaneous transaction; and
WHEREAS, this Agreement is intended to effectuate such simultaneous
transaction;
NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants hereinafter set forth, the parties hereto agree as follows:
SECTION 1. PREAMBLES. The District represents that the recitals
stated above are true and correct and the same are incorporated herein.
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SECTION 2. RECEIPT OF RESOLUTION AND VERIFICATION
REPORT. Receipt of a true and correct copy of the above-mentioned Resolution and
this Agreement is hereby acknowledged by the Escrow Agent. The applicable and
necessary provisions of the Resolution, including but not limited to Article III and
Section 9.01 of the Resolution, are incorporated herein by reference. The Escrow Agent
also acknowledges receipt of the verification report of The Arbitrage Group, Inc., dated
May , 2016 (the "Verification Report"). Reference herein to or citation herein of any
provisions of the Resolution or the Verification Report shall be deemed to incorporate the
same as a part hereof in the same manner and with the same effect as if the same were
fully set forth herein.
SECTION 3. DISCHARGE OF PLEDGE OF HOLDERS OF
REFUNDED BONDS. The District by this writing exercises its option under
Section 9.01 of the Resolution to cause the pledge of the Pledged Funds and all
covenants, agreements and other obligations of the District under the Resolution to the
holders of the Refunded Bonds to cease, terminate and become void and be discharged
and satisfied.
SECTION 4. ESTABLISHMENT OF ESCROW FUND. There is
hereby created and established with the Escrow Agent a special, segregated and
irrevocable escrow deposit trust fund designated the "Collier County Water-Sewer
District Water and Sewer Revenue Bonds, Series 2006, Escrow Deposit Trust Fund" (the
"Escrow Fund"). The Escrow Fund shall be held in the custody of the Escrow Agent as a
trust fund for the benefit of the holders of the Refunded Bonds separate and apart from
other funds and accounts of the District and the Escrow Agent. The Escrow Agent
hereby accepts the Escrow Fund and acknowledges the receipt of and deposit to the credit
of the Escrow Fund the sum of$ received from the District from proceeds of
the Series 2016 Bonds (the "Bond Proceeds") and $ received from the District
from certain moneys on deposit in certain funds and accounts allocated to the Refunded
Bonds (the "District Moneys").
SECTION 5. DEPOSIT OF MONEYS AND SECURITIES IN
ESCROW FUND. The District hereby directs and the Escrow Agent represents and
acknowledges that, concurrently with the deposit of the Bond Proceeds and District
Moneys under Section 4 above, it has used $ of the Bond Proceeds and
$ of District Moneys to purchase on behalf of and for the account of the
District certain United States Treasury obligations (collectively, together with any other
securities which may be on deposit, from time to time, in the Escrow Fund, the "Escrow
Securities"), which are described in Schedule B hereto, and the Escrow Agent will
deposit such Escrow Securities and $ in cash, all of which was derived from
monies in the Interest Account and Principal Account (as such Accounts are defined in
the Resolution) which were allocated to the Refunded Bonds (the "Cash Deposit") in the
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Escrow Fund. All Escrow Securities shall be noncallable, direct obligations of the United
States of America.
In the event any of the Escrow Securities described in Schedule B hereto are not
available for delivery on May , 2016, the Escrow Agent may, at the written direction
of the District and with the approval of the District's bond counsel ("Bond Counsel"),
substitute other United States Treasury obligations and shall credit such other obligations
to the Escrow Fund and hold such obligations until the aforementioned Escrow Securities
have been delivered. Bond Counsel shall, as a condition precedent to giving its approval,
require the District to provide it and the Escrow Agent with a revised Verification Report
in regard to the adequacy of the Escrow Securities, taking into account the substituted
obligations to pay the Refunded Bonds in accordance with the terms hereof. The Escrow
Agent shall in no manner be responsible or liable for failure or delay of Bond Counsel or
the District to promptly approve the substitutions of other United States Treasury
obligations for the Escrow Fund.
SECTION 6. SUFFICIENCY OF ESCROW SECURITIES AND THE
CASH DEPOSIT. In reliance upon the Verification Report, the District represents and
warrants that the Cash Deposit and the interest on and the principal amounts successively
maturing on the Escrow Securities in accordance with their terms (without consideration
of any reinvestment of such maturing principal and interest) are sufficient such that
moneys will be available to the Escrow Agent in amounts sufficient and at the times
required to pay the amounts of principal of, premium, if any, and interest due and to
become due on the Refunded Bonds as described in Schedule C attached hereto. If the
Escrow Securities and the Cash Deposit shall be insufficient to make such payments, the
District shall timely deposit to the Escrow Fund, solely from legally available funds of
the District, such additional amounts as may be required to pay the Refunded Bonds as
described in Schedule C hereto. Notice of any insufficiency shall be given by the Escrow
Agent to the District as promptly as possible, but the Escrow Agent shall in no manner be
responsible for the District's failure to make such deposits.
SECTION 7. ESCROW SECURITIES AND THE CASH DEPOSIT IN
TRUST FOR HOLDERS OF REFUNDED BONDS. The deposit of the Escrow
Securities and the Cash Deposit in the Escrow Fund shall constitute an irrevocable
deposit of Refunding Securities (as defined in the Resolution) and cash in trust solely for
the payment of the principal of, premium, if any, and interest on the Refunded Bonds at
such times and in such amounts as set forth in Schedule C hereto, and the principal of and
interest earnings on such Escrow Securities and the Cash Deposit shall be used solely for
such purpose.
SECTION 8. ESCROW AGENT TO PAY REFUNDED BONDS
FROM ESCROW FUND. The District hereby directs, and the Escrow Agent hereby
agrees, that it will take all actions required to be taken by it under the provisions of the
Resolution referenced in this Agreement, including the timely transfer of money to the
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paying agent for the Refunded Bonds (U.S. Bank National Association) as provided in
the Resolution, in order to effectuate this Agreement and to pay the Refunded Bonds in
the amounts and at the times provided in Schedule C hereto. The Escrow Securities and
the Cash Deposit shall be used to pay debt service on the Refunded Bonds as they mature
or are redeemed prior to maturity. The Refunded Bonds shall be redeemed prior to their
respective maturities on July 1, 2016 (the "Redemption Date") at a redemption price
equal to 100% of the principal amount of each Refunded Bond, plus interest accrued to
the Redemption Date. If any payment date shall be a day on which either the paying
agent for the Refunded Bonds or the Escrow Agent is not open for the acceptance or
delivery of funds, then the Escrow Agent may make payment on the next business day.
The liability of the Escrow Agent for the payment of the principal of, premium, if any,
and interest on the Refunded Bonds pursuant to this Agreement shall be limited to the
application of the Escrow Securities and the Cash Deposit and the interest earnings
thereon available for such purposes in the Escrow Fund.
SECTION 9. REINVESTMENT OF MONEYS AND SECURITIES IN
ESCROW FUND. Moneys deposited in the Escrow Fund shall be invested, other than
the Cash Deposit, only in the Escrow Securities listed in Schedule B hereto and, except as
provided in Section 5 hereof and this Section 9, neither the District nor the Escrow Agent
shall otherwise invest or reinvest any moneys in the Escrow Fund.
Except as provided in Section 5 hereof and in this Section 9, the Escrow Agent
may not sell or otherwise dispose of any or all of the Escrow Securities or the Cash
Deposit in the Escrow Fund and reinvest the proceeds thereof in other securities nor may
it substitute securities for any of the Escrow Securities, except upon written direction of
the District and where, prior to any such reinvestment or substitution, the Escrow Agent
has received from the District the following:
(a) a written verification report by a firm of independent certified public
accountants, of recognized standing, appointed by the District and
acceptable to the Escrow Agent, to the effect that after such reinvestment or
substitution the principal amount of Escrow Securities, together with the
interest therein and any uninvested cash, will be sufficient to pay the
Refunded Bonds as described in Schedule C hereto; and
(b) a written opinion of nationally recognized Bond Counsel to the effect that
(i) such investment will not cause the Series 2016 Bonds or the Refunded
Bonds to be "arbitrage bonds" within the meaning of Section 148 of the
Internal Revenue Code, as amended, and the regulations promulgated
thereunder or otherwise cause the interest on the Refunded Bonds or the
Series 2016 Bonds to be included as gross income for purposes of federal
income taxation, and (ii) such investment does not violate any provision of
Florida law or of the Resolution.
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The above-described verification report need not be provided in the event the
District purchases Escrow Securities with the proceeds of maturing Escrow Securities
and such purchased Escrow Securities mature on or before the next interest payment date
for the Refunded Bonds and have a face amount which is at least equal to the cash
amount invested in such Escrow Securities.
In the event the above-referenced verification concludes that there are surplus
moneys in the Escrow Fund, such surplus moneys shall be released to the District upon
its written direction. The Escrow Fund shall continue in effect until the date upon which
the Escrow Agent makes the final payment to the paying agent for the Refunded Bonds in
an amount sufficient to pay the Refunded Bonds as described in Schedule C hereto,
whereupon the Escrow Agent shall sell or redeem any Escrow Securities remaining in the
Escrow Fund, and shall remit to the District the proceeds thereof, together with all other
money, if any, then remaining in the Escrow Fund.
SECTION 10. REDEMPTION OF CERTAIN REFUNDED BONDS.
The District shall cause the Registrar and Paying Agent for the Refunded Bonds (U.S.
Bank National Association) to give on behalf of the District, at the appropriate times the
notice or notices, if any, required by the Resolution in connection with the redemption of
the Refunded Bonds. The Refunded Bonds shall be redeemed on July 1, 2016 at a
redemption price equal to 100% of the principal amount thereof, plus accrued interest.
The District shall cause the Registrar for the Refunded Bonds to file such redemption
notice with the Electronic Municipal Market Access within 10 days of it being so given.
SECTION 11. ESCROW FUND IRREVOCABLE. The Escrow Fund
hereby created shall be irrevocable and the holders of the Refunded Bonds shall have an
express lien on all Escrow Securities and the Cash Deposit deposited in the Escrow Fund
pursuant to the terms hereof and the interest earnings thereon until paid out, used and
applied in accordance with this Agreement and the Resolution. Neither the District nor
the Escrow Agent shall cause nor permit any other lien or interest whatsoever to be
imposed upon the Escrow Fund.
SECTION 12. AMENDMENTS TO AGREEMENT. This Agreement is
made for the benefit of the District and the holders from time to time of the Refunded
Bonds and it shall not be repealed, revoked, altered or amended without the written
consent of all such holders and the written consent of the Escrow Agent; provided,
however, that the District and the Escrow Agent may, without the consent of, or notice to,
such holders, enter into such agreements supplemental to this Agreement as shall not
adversely affect the rights of such holders and as shall not be inconsistent with the terms
and provisions of this Agreement, for any one or more of the following purposes:
(a) to cure any ambiguity or formal defect or omission in this Agreement;
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(b) to grant, or confer upon, the Escrow Agent for the benefit of the holders of
the Refunded Bonds, any additional rights, remedies, powers or authority
that may lawfully be granted to, or conferred upon, such holders or the
Escrow Agent; and
(c) to subject to this Agreement additional funds, securities or properties.
The Escrow Agent shall be entitled to rely exclusively upon an unqualified
opinion of nationally recognized Bond Counsel with respect to compliance with this
Section 12, including the extent, if any, to which any change, modification or addition
affects the rights of the holders of the Refunded Bonds, or that any instrument executed
hereunder complies with the conditions and provisions of this Section 12.
SECTION 13. FEES AND EXPENSES OF ESCROW AGENT;
INDEMNIFICATION. In consideration of the services rendered by the Escrow Agent
under this Agreement, the District agrees to and shall pay to the Escrow Agent the fees
and expenses as shall be agreed to in writing by the parties hereto. The Escrow Agent
shall have no lien whatsoever upon any of the Escrow Securities in the Escrow Fund for
the payment of such proper fees and expenses. To the extent allowed by applicable law,
the District further agrees to indemnify and save the Escrow Agent harmless, to the
extent allowed by law, against any liabilities which it may incur in the exercise and
performance of its powers and duties hereunder, and which are not due to the Escrow
Agent's own negligence or misconduct. Indemnification provided under this Section 13
shall survive the termination of this Agreement or the sooner resignation or removal of
the Escrow Agent.
Whenever the Escrow Agent shall deem it necessary or desirable that a matter be
proved or established prior to taking, suffering or omitting any action under this
Agreement, such matter may be deemed to be conclusively established by a certificate
signed by an authorized officer of the District. The Escrow Agent may conclusively rely,
as to the correctness of statements, conclusions and opinions therein, upon any certificate,
report, opinion or other document furnished to the Escrow Agent pursuant to any
provision of this Agreement; the Escrow Agent shall be protected and shall not be liable
for acting or proceeding, in good faith, upon such reliance; and the Escrow Agent shall be
under no duty to make any investigation or inquiry as to any statements contained or
matters referred to in any such instrument. The Escrow Agent may consult with counsel,
who may be counsel to the District or independent counsel, with regard to legal
questions, and the opinion of such counsel shall be full and complete authorization and
protection in respect of any action taken or suffered by it hereunder in good faith in
accordance herewith. Prior to retaining such independent counsel, the Escrow Agent
shall notify the District of its intention.
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The Escrow Agent and its successors, agents and servants shall not be held to any
personal liability whatsoever, in tort, contract or otherwise, by reason of the execution
and delivery of this Agreement, the establishment of the Escrow Fund, the acceptance
and disposition of the various moneys and funds described herein, the purchase, retention
or payment, transfer or other application of funds or securities by the Escrow Agent in
accordance with the provisions of this Agreement or any non-negligent act, omission or
error of the Escrow Agent made in good faith in the conduct of its duties. The Escrow
Agent shall, however, be liable to the District and to holders of the Refunded Bonds to
the extent of their respective damages for negligent or willful acts, omissions or errors of
the Escrow Agent which violate or fail to comply with the terms of this Agreement. The
duties and obligations of the Escrow Agent shall be determined by the express provisions
of this Agreement.
SECTION 14. REPORTING REQUIREMENTS OF ESCROW AGENT.
As soon as practicable July 1, 2016, the Escrow Agent shall forward in writing to the
District a statement in detail of the activity of the Escrow Fund.
SECTION 15. RESIGNATION OR REMOVAL OF ESCROW AGENT.
The Escrow Agent, at the time acting hereunder, may at any time resign and be
discharged from the duties and obligations hereby created by giving not less than 20 days'
written notice to the District and mailing notice thereof, specifying the date when such
resignation will take effect to the holders of all Refunded Bonds then outstanding, but no
such resignation shall take effect unless a successor Escrow Agent shall have been
appointed by the holders of a majority in aggregate principal amount of the Refunded
Bonds then outstanding or by the District as hereinafter provided and such successor
Escrow Agent shall have accepted such appointment, in which event such resignation
shall take effect immediately upon the appointment and acceptance of a successor Escrow
Agent.
The Escrow Agent may be replaced at any time by an instrument or concurrent
instruments in writing, delivered to the Escrow Agent and signed by either the District or
the holders of a majority in aggregate principal amount of the Refunded Bonds then
outstanding. Such instrument shall provide for the appointment of a successor Escrow
Agent, which appointment shall occur simultaneously with the removal of the Escrow
Agent.
In the event the Escrow Agent hereunder shall resign or be removed, or be
dissolved, or shall be in the course of dissolution or liquidation, or otherwise become
incapable of acting hereunder, or in case the Escrow Agent shall be taken under the
control of any public officer or officers, or of a receiver appointed by a court, a successor
may be appointed by the District or by the holders of a majority in aggregate principal
amount of the Refunded Bonds then outstanding by an instrument or concurrent
instruments in writing, signed by such holders, or by their attorneys in fact, duly
authorized in writing. In the event the holders of the Refunded Bonds shall appoint a
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successor Escrow Agent, the District may appoint a temporary Escrow Agent to fill such
vacancy until a successor Escrow Agent shall be appointed by the holders of a majority in
aggregate principal amount of the Refunded Bonds then outstanding in the manner above
provided, and any such temporary Escrow Agent so appointed by the District shall
immediately and without further act be superseded by the Escrow Agent so appointed by
such holders. The District shall mail notice of any such appointment made by it at the
times and in the manner described in the first paragraph of this Section 15.
In the event that no appointment of a successor Escrow Agent or a temporary
successor Escrow Agent shall have been made by such holders or the District pursuant to
the foregoing provisions of this Section 15 within 20 days after written notice of
resignation of the Escrow Agent has been given to the District, the holder of any of the
Refunded Bonds or any retiring Escrow Agent may apply to any court of competent
jurisdiction for the appointment of a successor Escrow Agent, and such court may
thereupon, after such notice, if any, as it shall deem proper, appoint a successor Escrow
Agent.
In the event of replacement or resignation of the Escrow Agent, the Escrow Agent
shall have no further liability hereunder and the District shall indemnify and hold
harmless the Escrow Agent, to the extent allowed by law, from any such liability,
including reasonable costs or expenses incurred by the Escrow Agent or its counsel.
No successor Escrow Agent shall be appointed unless such successor Escrow
Agent shall be a corporation with trust powers organized under the banking laws of the
United States or any State, and shall have at the time of appointment capital and surplus
of not less than $30,000,000.
Every successor Escrow Agent appointed hereunder shall execute, acknowledge
and deliver to its predecessor and to the District an instrument in writing accepting such
appointment hereunder and thereupon such successor Escrow Agent, without any further
act, deed or conveyance, shall become fully vested with all the rights, immunities,
powers, trusts, duties and obligations of its predecessor; but such predecessor shall
nevertheless, on the written request of such successor Escrow Agent or the District
execute and deliver an instrument transferring to such successor Escrow Agent all the
estates, properties, rights, powers and trust of such predecessor hereunder; and every
predecessor Escrow Agent shall deliver all securities and moneys held by it to its
successor; provided, however, that before any such delivery is required to be made, all
fees, advances and expenses of the retiring or removed. Escrow Agent shall be paid in
full. Should any transfer, assignment or instrument in writing from the District be
required by any successor Escrow Agent for more fully and certainly vesting in such
successor Escrow Agent the estates, rights, powers and duties hereby vested or intended
to be vested in the predecessor Escrow Agent, any such transfer, assignment and
instruments in writing shall, on request, be executed, acknowledged and delivered by the
District.
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Any corporation into which the Escrow Agent, or any successor to it in the trusts
created by this Agreement, may be merged or converted or with which it or any successor
to it may be consolidated, or any corporation resulting from any merger, conversion,
consolidation or tax-free reorganization to which the Escrow Agent or any successor to it
shall be a party shall be the successor Escrow Agent under this Agreement without the
execution or filing of any paper or any other act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding.
SECTION 16. TERMINATION OF AGREEMENT. This Agreement
shall terminate when all transfers and payments required to be made by the Escrow Agent
under the provisions hereof shall have been made. Upon such termination, all moneys
remaining in the Escrow Fund shall be released to the District.
SECTION 17. GOVERNING LAW. This Agreement shall be governed by
the applicable laws of the State of Florida but without regard to conflict of law principles.
Any action or proceeding, in law or equity, arising out of or in any way related to this
Agreement or the obligations hereunder shall be in Collier County, Florida.
SECTION 18. SEVERABILITY. If any one or more of the covenants or
agreements provided in this Agreement on the part of the District or the Escrow Agent to
be performed should be determined by a court of competent jurisdiction to be contrary to
law, such covenant or agreement shall be deemed and construed to be severable from the
remaining covenants and agreements herein contained and shall in no way affect the
validity of the remaining provisions of this Agreement.
SECTION 19. COUNTERPARTS. This Agreement may be executed in
several counterparts, all or any of which shall be regarded for all purposes as one original
and shall constitute and be but one and the same instrument.
SECTION 20. NOTICES. Any notice, authorization, request or demand
required or permitted to be given in accordance with the terms of this Agreement shall be
in writing and sent by registered or certified mail addressed to:
Collier County, Florida
Collier County Government Complex
3299 Tamiami Trail East, #202
Naples, Florida 34112
Attention: County Manager
Facsimile: (239) 252-8588
U.S. Bank National Association
550 West Cypress Road, Suite 380
Fort Lauderdale, FL 33309
Attention: Global Corporate Trust Services
Facsimile: (954) 202-2082
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IN WITNESS WHEREOF, the parties hereto have each caused this Escrow
Deposit Agreement to be executed by their duly authorized officers and appointed
officials and their seals to be hereunder affixed and attested as of the date first written
herein.
ATTEST: COLLIER COUNTY WATER-SEWER
DWIGHT E. BROCK, CLERK DISTRICT
By: By:
Derek M. Johnssen, Deputy Clerk Chairwoman, Board of County
Commissioners of Collier County, Florida,
as the Ex-Officio Chairwoman of the
Governing Board of the Collier County
Water-Sewer District
Approved as to form
and legality:
Jeffrey A. Klatzkow
County Attorney
U.S. BANK NATIONAL ASSOCIATION, as
Escrow Agent
By:
Vice President
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SCHEDULE A
REFUNDED BONDS
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SCHEDULE B
ESCROW SECURITIES
[TO COME FROM VERIFICATION REPORT]
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SCHEDULE C
DISBURSEMENT REQUIREMENTS FOR REFUNDED BONDS
Principal
Date Interest Redeemed Total
July 1,2016 $ $_ $
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APPENDIX E
FORM OF CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by
Collier County Water-Sewer District (the "Issuer") in connection with the issuance of its $ Water
and Sewer Refunding Revenue Bonds,Series 2016 (the "Bonds"). The Bonds are being issued pursuant to
Resolution No. CWS-85-5 adopted on July 30, 1985, as restated, amended and supplemented by
Resolution No. CWS-85-13 adopted on December 26, 1985, as amended and supplemented, particularly
as supplemented by Resolution No. 2016- /CWS Resolution No. 2016 adopted by the governing board
on April ,2016(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 the Issuer, or any successor Dissemination Agent designated
in writing by the Issuer and which has filed with the Issuer a written acceptance of such designation.
"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.
"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.
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"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, 2017 with respect to the report for the 2016 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) Not later than fifteen (15) Business Days prior to the date set forth in (a) above,
the Issuer shall provide the Annual Report to the Dissemination Agent (if other than the Issuer). If the
Issuer is unable to provide to any Repository and the Insurer an Annual Report as required in subsection
(a), the Issuer(or the Dissemination Agent, if other than the Issuer) shall send a notice to any Repository,
in electronic format as prescribed by such Repository, and to the Insurer, in substantially the form
attached as Exhibit A.
(c) The Dissemination Agent shall:
(i) determine each year prior to the date for providing the Annual Report the name
and address of any Repository;
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(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.
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 , 2016 (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) Historical Sewer System and Water System Equivalent Residential Connections and
Water and Sewer Accounts;
(ii) Monthly Water Rates;
(iii) Monthly Sewer Rate;
(iv) Monthly Reuse Irrigation Rates;
(v) Existing System Development Fees;and
(vi) Historical Operating Results.
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 Web site or filed with the Securities and Exchange
Commission.
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
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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 15 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;
14. appointment of a successor or additional trustee or the change of name of a
trustee,if material;and
15. 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.
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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
the Issuer.
SECTION 9. AMENDMENT;WAIVER. Notwithstanding any other provision of this Disclosure
Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this Disclosure
Certificate may be waived,provided that the following conditions are satisfied:
(a) If the amendment or waiver relates to the provisions of Sections 3(a),4, or 5(a),it
may only be made in connection with a change in circumstances that arises from a change in legal
requirements, change in law, or change in the identity, nature or status of the Issuer, or the type
of business conducted;
(b) The undertaking, as amended or taking into account such waiver, would, in the
opinion of nationally recognized bond counsel, have complied with the requirements of the Rule
at the time of the original issuance of the Bonds, after taking into account any amendments or
interpretations of the Rule,as well as any change in circumstances;and
(c) The amendment or waiver either (i) is approved by the holders or Beneficial
Owners of the Bonds in the same manner as provided in the Resolution for amendments to the
Resolution with the consent of holders or Beneficial Owners, or (ii) does not, in the opinion of
nationally recognized bond counsel, materially impair the interests of the holders or Beneficial
Owners of the Bonds.
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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.
SECTION 12. DUTIES, IMMUNITIES AND LIABILITIES OF DISSEMINATION AGENT. The
Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate,
and the Issuer agrees to indemnify and save the Dissemination Agent, its officers, directors, employees
and agents, harmless against loss, expense and liabilities which it may incur arising out of or in the
exercise or performance of its powers and duties hereunder, including the costs and expenses (including
attorneys fees) of defending against any claim of liability, but excluding liabilities due to the
Dissemination Agent's negligence or willful misconduct. The obligations of the Issuer under this Section
shall survive resignation or removal of the Dissemination Agent and payment of the Bonds.
[Remainder of page intentionally left blank]
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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 ,2016
COLLIER COUNTY,FLORIDA
By:
Chairwoman,of the Board of
County Commissioners
Approved as to Form and Legal Sufficiency:
County Attorney
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EXHIBIT A
NOTICE OF FAILURE TO FILE ANNUAL REPORT
Name of Issuer: Collier County Water-Sewer District
Name of Bond Issue: Water and Sewer Refunding Revenue Bonds,Series 2016
Date of Issuance: ,2016
NOTICE IS HEREBY GIVEN that the Issuer has not provided an Annual Report with respect to the
above-named Bonds as required by Sections 3 and 4(b) of the Continuing Disclosure Certificate dated as
of , 2016. The Issuer anticipates that the Annual Report will be filed by
Dated:
COLLIER COUNTY,FLORIDA
By:
Name:
Title:
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SOURCES AND USES OF FUNDS
Collier County,Florida(Water-Sewer District)
Proposed Refunding of Outstanding Series 2006 Bonds
PRELIMINARY NUMBERS
Dated Date 05/18/2016
Delivery Date 05/18/2016
Sources:
Bond Proceeds:
Par Amount 51,145,000.00
Premium 9,205,164.85
60,350,164.85
Other Sources of Funds:
Prior Sinking Fund 874,013.33
Est Reserve Release 683,225.00
1,557,238.33
61,907,403.18
Uses:
Refunding Escrow Deposits:
Cash Deposit 0.50
SLGS Purchases 61,451,759.00
61,451,759.50
Delivery Date Expenses:
Cost of Issuance 250,000.00
Underwriter's Discount 204,580.00
454,580.00
Other Uses of Funds:
Additional Proceeds 1,063.68
61,907,403.18
Note: *Preliminary Numbers for discussion purposes only.
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BOND SUMMARY STATISTICS
Collier County,Florida(Water-Sewer District)
Proposed Refunding of Outstanding Series 2006 Bonds
PRELIMINARY NUMBERS
Dated Date 05/18/2016
Delivery Date 05/18/2016
First Coupon 07/01/2016
Last Maturity 07/01/2036
Arbitrage Yield 2.932011%
True Interest Cost(TIC) 3.594633%
Net Interest Cost(NIC) 3.957118%
All-In TIC 3.629924%
Average Coupon 5.000000%
Average Life(years) 16.875
Duration of Issue(years) 12.022
Par Amount 51,145,000.00
Bond Proceeds 60,350,164.85
Total Interest 43,152,449.31
Net Interest 34,151,864.46
Total Debt Service 94,297,449.31
Maximum Annual Debt Service 7,918,250.00
Average Annual Debt Service 4,686,881.37
Underwriter's Fees(per$1000)
Average Takedown
Other Fee 4.000000
Total Underwriter's Discount 4.000000
Bid Price 117.598172
Par Average Average PV of 1 bp
Bond Component Value Price Coupon Life change
Bond Component 51,145,000.00 117.998 5.000% 16.875 49,202.65
51,145,000.00 16.875 49,202.65
All-In Arbitrage
TIC TIC Yield
Par Value 51,145,000.00 51,145,000.00 51,145,000.00
+Accrued Interest
+Premium(Discount) 9,205,164.85 9,205,164.85 9,205,164.85
-Underwriter's Discount -204,580.00 -204,580.00
-Cost of Issuance Expense -250,000.00
-Other Amounts
Target Value 60,145,584.85 59,895,584.85 60,350,164.85
Target Date 05/18/2016 05/18/2016 05/18/2016
Yield 3.594633% 3.629924% 2.932011%
Note: *Preliminary Numbers for discussion purposes only.
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SUMMARY OF REFUNDING RESULTS
Collier County,Florida(Water-Sewer District)
Proposed Refunding of Outstanding Series 2006 Bonds
PRELIMINARY NUMBERS
Dated Date 05/18/2016
Delivery Date 05/18/2016
Arbitrage yield 2.932011%
Escrow yield 0.262533%
Value of Negative Arbitrage 194,084.84
Bond Par Amount 51,145,000.00
True Interest Cost 3.594633%
Net Interest Cost 3.957118%
Average Coupon 5.000000%
Average Life 16.875
Par amount of refunded bonds 60,160,000.00
Average coupon of refunded bonds 4.370242%
Average life of refunded bonds 16.842
PV of prior debt to 05/18/2016 @ 2.932011% 72,530,938.00
Net PV Savings 5,877,242.32
Percentage savings of refunded bonds 9.769352%
Percentage savings of refunding bonds 11.491333%
Note: *Preliminary Numbers for discussion purposes only.
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SUMMARY OF BONDS REFUNDED
Collier County,Florida(Water-Sewer District)
Proposed Refunding of Outstanding Series 2006 Bonds
PRELIMINARY NUMBERS
Maturity Interest Par Call Call
Bond Date Rate Amount Date Price
Water and Sewer Revenue Bonds,Series 2006:
TERM_32 07/01/2029 4.250% 6,460,000.00 07/01/2016 100.000
07/01/2030 4.250% 6,735,000.00 07/01/2016 100.000
07/01/2031 4.250% 7,025,000.00 07/01/2016 100.000
07/01/2032 4.250% 7,320,000.00 07/01/2016 100.000
TERM_36 07/01/2033 4.450% 7,630,000.00 07/01/2016 100.000
07/01/2034 4.450% 7,970,000.00 07/01/2016 100.000
07/01/2035 4.450% 8,325,000.00 07/01/2016 100.000
07/01/2036 4.450% 8,695,000.00 07/01/2016 100.000
60,160,000.00
•
Note: *Preliminary Numbers for discussion purposes only.
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SAVINGS
Collier County,Florida(Water-Sewer District)
Proposed Refunding of Outstanding Series 2006 Bonds
PRELIMINARY NUMBERS
Present Value
Prior Prior Prior Refunding to 05/18/2016
Date Debt Service Receipts Net Cash Flow Debt Service Savings @ 2.9320113%
07/01/2016 1,311,020.00 874,013.33 437,006.67 305,449.31 131,557.36 128,067.36
07/01/2017 2,622,040.00 2,622,040.00 2,557,250.00 64,790.00 63,172.60
07/01/2018 2,622,040.00 2,622,040.00 2,557,250.00 64,790.00 61,360.32
07/01/2019 2,622,040.00 2,622,040.00 2,557,250.00 64,790.00 59,600.03
07/01/2020 2,622,040.00 2,622,040.00 2,557,250.00 64,790.00 57,890.24
07/01/2021 2,622,040.00 2,622,040.00 2,557,250.00 64,790.00 56,229.50
07/01/2022 2,622,040.00 2,622,040.00 2,557,250.00 64,790.00 54,616.40
07/01/2023 2,622,040.00 2,622,040.00 2,557,250.00 64,790.00 53,049.58
07/01/2024 2,622,040.00 2,622,040.00 2,557,250.00 64,790.00 51,527.71
07/01/2025 2,622,040.00 2,622,040.00 2,557,250.00 64,790.00 50,049.49
07/01/2026 2,622,040.00 2,622,040.00 2,557,250.00 64,790.00 48,613.69
07/01/2027 2,622,040.00 2,622,040.00 2,557,250.00 64,790.00 47,219.07
07/01/2028 2,622,040.00 2,622,040.00 2,557,250.00 64,790.00 45,864.46
07/01/2029 9,082,040.00 9,082,040.00 7,912,250.00 1,169,790.00 798,802.85
07/01/2030 9,082,490.00 9,082,490.00 7,914,500.00 1,167,990.00 774,660.55
07/01/2031 9,086,252.50 9,086,252.50 7,918,250.00 1,168,002.50 752,421.80
07/01/2032 9,082,690.00 9,082,690.00 7,912,750.00 1,169,940.00 732,034.40
07/01/2033 9,081,590.00 9,081,590.00 7,912,750.00 1,168,840.00 710,360.77
07/01/2034 9,082,055.00 9,082,055.00 7,912,250.00 1,169,805.00 690,490.89
07/01/2035 9,082,390.00 9,082,390.00 7,910,500.00 1,171,890.00 671,823.14
07/01/2036 9,081,927.50 9,081,927.50 7,911,750.00 1,170,177.50 651,548.80
105,436,935.00 874,013.33 104,562,921.67 94,297,449.31 10,265,472.36 6,559,403.64
Savings Summary
PV of savings from cash flow 6,559,403.64
Less:Prior funds on hand -683,225.00
Plus:Refunding funds on hand 1,063.68
Net PV Savings 5,877,242.32
Note: *Preliminary Numbers for discussion purposes only.
Mar 21,2016 6:01 pm Prepared by Public Financial Management,Inc. i,'!`" Page 5
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4/12/2016 11.A.
BOND PRICING
Collier County,Florida(Water-Sewer District)
Proposed Refunding of Outstanding Series 2006 Bonds
PRELIMINARY NUMBERS
Maturity Yield to Call Call Premium
Bond Component Date Amount Rate Yield Price Maturity Date Price (-Discount)
Bond Component:
07/01/2017 3.000% 1.080% 102.129
07/01/2018 3.000% 1.220% 103.712
07/01/2019 4.000% 1.380% 107.971
07/01/2020 4.000% 1.530% 109.823
07/01/2021 5.000% 1.670% 116.272
07/01/2022 5.000% 1.810% 118.398
07/01/2023 5.000% 1.970% 120.033
07/01/2024 5.000% 2.140% 121.209
07/01/2025 5.000% 2.280% 122.279
07/01/2026 5.000% 2.390% 123.334
07/01/2027 5.000% 2.510% 122.127 C 2.685% 07/01/2026 100.000
07/01/2028 5.000% 2.590% 121.330 C 2.900% 07/01/2026 100.000
07/01/2029 '5,355,000 5.000% 2.670% 120.539 C 3.084% 07/01/2026 100.000 1,099,863.45
07/01/2030 5,625,000 5.000% 2.750% 119.754 C 3.245% 07/01/2026 100.000 1,111,162.50
07/01/2031 5,910,000 5.000% 2.830% 118.975 C 3.386% 07/01/2026 100.000 1,121,422.50
07/01/2032 6,200,000 5.000% 2.910% 118.203 C 3.511% 07/01/2026 100.000 1,128,586.00
07/01/2033 6,510,000 5.000% 2.970% 117.627 C 3.610% 07/01/2026 100.000 1,147,517.70
07/01/2034 6,835,000 5.000% 3.020% 117.150 C 3.693% 07/01/2026 100.000 1,172,202.50
07/01/2035 7,175,000 5.000% 3.070% 116.675 C 3.768% 07/01/2026 100.000 1,196,431.25
07/01/2036 7,535,000 5.000% 3.110% 116.297 C 3.830% 07/01/2026 100.000 1,227,978.95
51,145,000 9,205,164.85
Dated Date 05/18/2016
Delivery Date 05/18/2016
First Coupon 07/01/2016
Par Amount 51,145,000.00
Premium 9,205,164.85
Production 60,350,164.85 117.998172%
Underwriter's Discount -204,580.00 -0.400000%
Purchase Price 60,145,584.85 117.598172%
Accrued Interest
Net Proceeds 60,145,584.85
Note: *Preliminary Numbers for discussion purposes only.
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4/12/2016 11 .A.
BOND DEBT SERVICE
Collier County,Florida(Water-Sewer District)
Proposed Refunding of Outstanding Series 2006 Bonds
PRELIMINARY NUMBERS
Period
Ending Principal Coupon Interest Debt Service
07/01/2016 305,449.31 305,449.31
07/01/2017 2,557,250.00 2,557,250.00
07/01/2018 2,557,250.00 2,557,250.00
07/01/2019 2,557,250.00 2,557,250.00
07/01/2020 2,557,250.00 2,557,250.00
07/01/2021 2,557,250.00 2,557,250.00
07/01/2022 2,557,250.00 2,557,250.00
07/01/2023 2,557,250.00 2,557,250.00
07/01/2024 2,557,250.00 2,557,250.00
07/01/2025 2,557,250.00 2,557,250.00
07/01/2026 2,557,250.00 2,557,250.00
07/01/2027 2,557,250.00 2,557,250.00
07/01/2028 2,557,250.00 2,557,250.00
07/01/2029 5,355,000 5.000% 2,557,250.00 7,912,250.00
07/01/2030 5,625,000 5.000% 2,289,500.00 7,914,500.00
07/01/2031 5,910,000 5.000% 2,008,250.00 7,918,250.00
07/01/2032 6,200,000 5.000% 1,712,750.00 7,912,750.00
07/01/2033 6,510,000 5.000% 1,402,750.00 7,912,750.00
07/01/2034 6,835,000 5.000% 1,077,250.00 7,912,250.00
07/01/2035 7,175,000 5.000% 735,500.00 7,910,500.00
07/01/2036 7,535,000 5.000% 376,750.00 7,911,750.00
51,145,000 43,152,449.31 94,297,449.31
Note: *Preliminary Numbers for discussion purposes only.
Mar 21,2016 6:01 pm Prepared by Public Financial Management,Inc. x' `$ Page 7
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4/12/2016 11 .A.
BOND DEBT SERVICE
Collier County,Florida(Water-Sewer District)
Proposed Refunding of Outstanding Series 2006 Bonds
PRELIMINARY NUMBERS
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
07/01/2016 305,449.31 305,449.31 305,449.31
01/01/2017 1,278,625.00 1,278,625.00
07/01/2017 1,278,625.00 1,278,625.00 2,557,250.00
01/01/2018 1,278,625.00 1,278,625.00
07/01/2018 1,278,625.00 1,278,625.00 2,557,250.00
01/01/2019 1,278,625.00 1,278,625.00
07/01/2019 1,278,625.00 1,278,625.00 2,557,250.00
01/01/2020 1,278,625.00 1,278,625.00
07/01/2020 1,278,625.00 1,278,625.00 2,557,250.00
01/01/2021 1,278,625.00 1,278,625.00
07/01/2021 1,278,625.00 1,278,625.00 2,557,250.00
01/01/2022 1,278,625.00 1,278,625.00
07/01/2022 1,278,625.00 1,278,625.00 2,557,250.00
01/01/2023 1,278,625.00 1,278,625.00
07/01/2023 1,278,625.00 1,278,625.00 2,557,250.00
01/01/2024 1,278,625.00 1,278,625.00
07/01/2024 1,278,625.00 1,278,625.00 2,557,250.00
01/01/2025 1,278,625.00 1,278,625.00
07/01/2025 1,278,625.00 1,278,625.00 2,557,250.00
01/01/2026 1,278,625.00 1,278,625.00
07/01/2026 1,278,625.00 1,278,625.00 2,557,250.00
01/01/2027 1,278,625.00 1,278,625.00
07/01/2027 1,278,625.00 1,278,625.00 2,557,250.00
01/01/2028 1,278,625.00 1,278,625.00
07/01/2028 1,278,625.00 1,278,625.00 2,557,250.00
01/01/2029 1,278,625.00 1,278,625.00
07/01/2029 5,355,000 5.000% 1,278,625.00 6,633,625.00 7,912,250.00
01/01/2030 1,144,750.00 1,144,750.00
07/01/2030 5,625,000 5.000% 1,144,750.00 6,769,750.00 7,914,500.00
01/01/2031 1,004,125.00 1,004,125.00
07/01/2031 5,910,000 5.000% 1,004,125.00 6,914,125.00 7,918,250.00
01/01/2032 856,375.00 856,375.00
07/01/2032 6,200,000 5.000% 856,375.00 7,056,375.00 7,912,750.00
01/01/2033 701,375.00 701,375.00
07/01/2033 6,510,000 5.000% 701,375.00 7,211,375.00 7,912,750.00
01/01/2034 538,625.00 538,625.00
07/01/2034 6,835,000 5.000% 538,625.00 7,373,625.00 7,912,250.00
01/01/2035 367,750.00 367,750.00
07/01/2035 7,175,000 5.000% 367,750.00 7,542,750.00 7,910,500.00
01/01/2036 188,375.00 188,375.00
07/01/2036 7,535,000 5.000% 188,375.00 7,723,375.00 7,911,750.00
51,145,000 43,152,449.31 94,297,449.31 94,297,449.31
Note: *Preliminary Numbers for discussion purposes only.
Mar 21,2016 6:01 pm Prepared by Public Financial Management,Inc. ?' `S Page 8
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4/12/2016 11 .A.
ESCROW REQUIREMENTS
Collier County,Florida(Water-Sewer District)
Proposed Refunding of Outstanding Series 2006 Bonds
PRELIMINARY NUMBERS
Period Principal
Ending Interest Redeemed Total
07/01/2016 1,311,020.00 60,160,000.00 61,471,020.00
1,311,020.00 60,160,000.00 61,471,020.00
Note: *Preliminary Numbers for discussion purposes only.
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4/12/2016 11 .A.
ESCROW DESCRIPTIONS
Collier County,Florida(Water-Sewer District)
Proposed Refunding of Outstanding Series 2006 Bonds
PRELIMINARY NUMBERS
Type of Type of Maturity First Int Par Max
Security SLGS Date Pmt Date Amount Rate Rate
May 18,2016:
SLGS Certificate 07/01/2016 07/01/2016 61,451,759 0.260% 0.260%
61,451,759
SLGS Summary
SLGS Rates File 21MAR16
Total Certificates of Indebtedness 61,451,759.00
Note: *Preliminary Numbers for discussion purposes only.
Mar 21,2016 6:01 pm Prepared by Public Financial Management,Inc. Page 10
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4/12/2016 11 .A.
ESCROW COST
Collier County,Florida(Water-Sewer District)
Proposed Refunding of Outstanding Series 2006 Bonds
PRELIMINARY NUMBERS
Type of Maturity Par Total
Security Date Amount Rate Cost
SLGS 07/01/2016 61,451,759 0.260% 61,451,759.00
61,451,759 61,451,759.00
Purchase Cost of Cash Total
Date Securities Deposit Escrow Cost
05/18/2016 61,451,759 0.50 61,451,759.50
61,451,759 0.50 61,451,759.50
Note: *Preliminary Numbers for discussion purposes only.
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4/12/2016 11 .A.
ESCROW CASH FLOW
Collier County,Florida(Water-Sewer District)
Proposed Refunding of Outstanding Series 2006 Bonds
PRELIMINARY NUMBERS
Net Escrow
Date Principal Interest Receipts
07/01/2016 61,451,759.00 19,260.50 61,471,019.50
61,451,759.00 19,260.50 61,471,019.50
Escrow Cost Summary
Purchase date 05/18/2016
Purchase cost of securities 61,451,759.00
Note: *Preliminary Numbers for discussion purposes only.
Mar 21,2016 6:01 pm Prepared by Public Financial Management,Inc. Page 12
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4/12/2016 11 .A.
ESCROW SUFFICIENCY
Collier County,Florida(Water-Sewer District)
Proposed Refunding of Outstanding Series 2006 Bonds
PRELIMINARY NUMBERS
Escrow Net Escrow Excess Excess
Date Requirement Receipts Receipts Balance
05/18/2016 0.50 0.50 0.50
07/01/2016 61,471,020.00 61,471,019.50 -0.50
61,471,020.00 61,471,020.00 0.00
Note: *Preliminary Numbers for discussion purposes only.
Mar 21,2016 6:01 pm Prepared by Public Financial Management,Inc. 'f^ Page 13
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4/12/2016 11 .A.
ESCROW STATISTICS
Collier County,Florida(Water-Sewer District)
Proposed Refunding of Outstanding Series 2006 Bonds
PRELIMINARY NUMBERS
Modified Yield to Yield to Perfect Value of
Total Duration Receipt Disbursement Escrow Negative Cost of
Escrow Escrow Cost (years) Date Date Cost Arbitrage Dead Time
SFI 874,013.33 0.119 0.262536% 0.262536% 871,252.91 2,760.42
DSRF 683,225.00 0.119 0.262534% 0.262534% 681,067.15 2,157.85
BP 59,894,521.17 0.119 0.262533% 0.262533% 59,705,354.60 189,166.57
61,451,759.50 61,257,674.66 194,084.84 0.00
Delivery date 05/18/2016
Arbitrage yield 2.932011%
Note: *Preliminary Numbers for discussion purposes only.
Mar 21,2016 6:01 pm Prepared by Public Financial Management,Inc. z'k" Page 14
Packet Page-273- • =
PRELIMINARY OFFICIAL STATEMENT DATED , 2016
NEW ISSUE —FULL BOOK ENTRY See "RATINGS" herein
In the opinion of Bond Counsel, under existing statutes, regulations, rulings and court decisions, and
assuming compliance with the tax covenants described herein, interest on the Series 2016 Bonds is excludable from
gross income for federal income tax purposes, and is not an item of tax preference for purposes of the federal
alternative minimum tax imposed on individuals and corporations. Such interest, however, will be includable in the
calculation of certain corporations' alternative minimum taxable income. See "TAX EXEMPTION" herein
regarding certain tax considerations.
Dated: Date of Delivery
COLLIER COUNTY WATER -SEWER DISTRICT
Water and Sewer Refunding Revenue Bonds,
Series 2016
Due: July 1, as shown on the
inside cover hereof
The Water and Sewer Refunding Revenue Bonds, Series 2016 (the 'Series 2016 Bonds') are being
issued by the Collier County Water -Sewer District (the 'District') as fully registered bonds and initially
will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York,
New York ('DTC'). Individual purchases will be made in book -entry form only in denominations of
$5,000 and integral multiples thereof. Purchasers of the Series 2016 Bonds will not receive physical
delivery of certificates. Transfers of ownership interest in the Series 2016 Bonds will be effected by DTC
book -entry system as described herein. Interest on the Series 2016 Bonds is payable on July 1, 2016 and
semiannually on each January 1 and July 1 thereafter. Principal of, premium, if any, and interest on the
Series 2016 Bonds will be payable by U.S. Bank National Association, Fort Lauderdale, Florida, as Paying
Agent and Bond Registrar.
The Series 2016 Bonds are subject to optional and mandatory redemption prior to their stated
maturities as described herein.
This cover page contains information for quick reference only and 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 2016 Bonds are being issued, together with certain other legally available monies of the
District, to (i) currently refund all of the District's Water and Sewer Revenue Bonds, Series 2006, and (ii)
pay certain costs of issuance of the Series 2016 Bonds. The Series 2016 Bonds are being issued as
'Additional Bonds' on a parity with the District's outstanding Water and Sewer Refunding Revenue
Bond, Series 2009, Water and Sewer Refunding Revenue Bond, Series 2013 and Water and Sewer
Refunding Revenue Bond, Series 2015 (collectively, the 'Prior District Bonds'), all issued by the District
pursuant to the provisions of Resolution No. CWS -85 -5 adopted on July 30, 1985, as restated, amended
and supplemented by Resolution No. CWS -85 -13 adopted on December 26, 1985, as amended and
25694/006/01094478.DOCv3
supplemented, particularly as supplemented by Resolution No. 2016 ---JCWS Resolution No. 2016
adopted by the governing board on April J 2016 (collectively, the 'Resolution').
THE SERIES 2016 BONDS ARE SECURED BY A PLEDGE OF AND LIEN ON, THE
PLEDGED FUNDS (AS DEFINED IN THE RESOLUTION), ON PARITY AND EQUAL STATUS
WITH THE PRIOR DISTRICT BONDS, AS PROVIDED IN THE RESOLUTION. SEE "SECURITY
FOR THE BONDS" HEREIN. THE SERIES 2016 BONDS SHALL NOT BE DEEMED TO
CONSTITUTE A GENERAL OBLIGATION OR PLEDGE OF THE FAITH AND CREDIT OF THE
DISTRICT, COLLIER COUNTY, THE STATE OF FLORIDA OR ANY POLITICAL SUBDIVISION OF
THE STATE OF FLORIDA FOR THE PAYMENT OF THE SERIES 2016 BONDS. THE SERIES 2016
BONDS AND THE OBLIGATIONS EVIDENCED THEREBY DO NOT CONSTITUTE A LIEN UPON
ANY PROPERTY OF THE DISTRICT, COLLIER COUNTY OR THE STATE OF FLORIDA, BUT
SHALL CONSTITUTE A LIEN ONLY ON, AND PAYABLE SOLELY FROM, THE PLEDGED FUNDS
IN THE MANNER AND TO THE EXTENT DESCRIBED IN THE RESOLUTION.
The Series 2016 Bonds are offered when, as, and if issued by the District and received by the Underwriter,
subject to the opinion on certain legal matters relating to their issuance by Nabors, Giblin & Nickerson, P.A.,
Tampa, Florida, Bond Counsel. Certain legal matters will be passed upon for the District by Jeffrey A. Klatzkow,
Esq., District Attorney and by Bryant Miller Olive P.A., Tampa, Florida, Disclosure Counsel. Public Financial
Management, Inc., Coral Gables, Florida, is serving as Financial Advisor to the District. It is expected that the
Series 2016 Bonds in definitive form will be available for delivery to the Underwriter in New York, New York at the
facilities of DTC on or about 2016.
Electronic bids for the Series 2016 Bonds will be received through Parity Electronic Bid
Submission System as described in the Official Notice of Sale.
This Official Statement is dated 2016.
*Preliminary, subject to change.
25694/006/01094478.DOCv3
COLLIER COUNTY WATER -SEWER DISTRICT
Water and Sewer Refunding Revenue Bonds,
Series 2016
MATURITIES, AMOUNTS, INTEREST RATES, PRICES OR YIELDS AND INITIAL CUSIP NUMBERS
$ * Serial Bonds
Maturity Interest Prices or Initial CUSIP
(July 1) Amount* Rate Yields Number **
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
$ * % Term Bond due July 1, *, Price %, Initial CUSIP Number **
$ * % Term Bond due July 1, *, Price %, Initial CUSIP Number **
* Preliminary, subject to change.
** The District is not responsible for the use of the CUSIP umbers referenced herein nor is any
representation made by the District as to their correctness. The CUSIP numbers provided herein
are included solely for the convenience of the readers of this Official Statement.
25694/006/01094478.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 2016 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 District 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.
25694/006/01094478.DOCv3
COLLIER COUNTY WATER -SEWER DISTRICT
Government Complex
3339 Tamiami Trail East
Naples, Florida 34112
(877) 355 -7640
BOARD OF COUNTY COMMISSIONERS
Donna Fiala, Chairwoman
Tim Nance, Vice Chair
Tom Henning, Commissioner
Georgia A. Hiller, Esq., Commissioner
Penny Taylor, Commissioner
COUNTY MANAGER
Leo E. Ochs, Jr.
CLERK OF THE CIRCUIT COURT OF COLLIER COUNTY
AND CHIEF FINANCIAL OFFICER
Dwight E. Brock, Esq.
DIRECTOR OF FINANCE AND ACCOUNTING
Crystal K. Kinzel
COUNTY ATTORNEY /ATTORNEY TO THE DISTRICT
Jeffrey A. Klatzkow, Esq.
PUBLIC UTILITIES DEPARTMENT HEAD
G. George Yilmaz, Ph.D.
DIRECTOR OF FINANCIAL OPERATIONS SUPPORT
Joseph G. Bellone
BOND COUNSEL
Nabors, Giblin & Nickerson, P.A.
Tampa, Florida
DISCLOSURE COUNSEL
Bryant Miller Olive P.A.
Tampa, Florida
FINANCIAL ADVISOR
Public Financial Management, Inc.
Fort Myers, Florida
25694/006/01094478.DOCv3
No dealer, broker, salesman or other person has been authorized by the District or the
Underwriter to give any information or to make any representations in connection with the Series 2016
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 District. 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 2016 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 District, DTC and other sources that
are believed to be reliable. The Underwriter listed on the cover page hereof has reviewed the information
in this Official Statement in accordance with and as part of its responsibilities to investors under the
federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter
does not guarantee the accuracy or completeness of such information. The information and expressions
of opinion stated herein are subject to change, and neither the delivery of this Official Statement nor any
sale made hereunder shall create, under any circumstances, any implication that there has been no
change in the matters described herein since the date hereof.
IN CONNECTION WITH THIS OFFERING OF THE SERIES 2016 BONDS, THE
UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN
THE MARKET PRICE OF SUCH SERIES 2016 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 2016 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 2016 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 DISTRICT AND THE TERMS OF THE OFFERING,
INCLUDING THE MERITS AND RISKS INVOLVED. THE SERIES 2016 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.
25694/006/01094478.DOCv3
TABLE OF CONTENTS
Contents
Page
INTRODUCTION......................................................................................................................... ..............................1
TheCounty and the District .................................................................................................... ..............................1
TheSeries 2016 Bonds .............................................................................................................. ..............................2
Purposeof the Series 2016 Bonds ............................................................................................ ..............................2
Securityfor the Bonds .............................................................................................................. ..............................2
ReserveAccount ........................................................................................................................ ..............................2
RedemptionProvisions ............................................................................................................ ..............................3
AdditionalBonds ...................................................................................................................... ..............................3
TaxMatters ................................................................................................................................ ..............................3
ContinuingDisclosure .............................................................................................................. ..............................3
AdditionalInformation ............................................................................................................ ..............................3
PLANOF REFUNDING .............................................................................................................. ..............................3
DESCRIPTION OF THE SERIES 2016 BONDS ......................................................................... ..............................4
General....................................................................................................................................... ..............................4
Payment of the Series 2016 Bonds .......................................................................................... ..............................4
Exchange, Registration and Transfer ..................................................................................... ..............................5
Ownershipof Series 2016 Bonds ............................................................................................. ..............................5
RedemptionProvisions ............................................................................................................ ..............................5
Book -Entry Only System .......................................................................................................... ..............................6
SECURITYFOR THE BONDS .................................................................................................... ..............................9
General....................................................................................................................................... ..............................9
RateCovenant .......................................................................................................................... .............................10
Fundsand Accounts ................................................................................................................ .............................11
SeparateAccounts .................................................................................................................... .............................11
Dispositionof Revenues .......................................................................................................... .............................11
System Development Fees Fund ............................................................................................ .............................12
NoReserve Account ................................................................................................................ .............................13
AdditionalBonds ..................................................................................................................... .............................13
SubordinatedIndebtedness .................................................................................................... .............................14
No Mortgage or Sale of the System ....................................................................................... .............................14
NoFree Service ......................................................................................................................... .............................14
NoImpairment of Rights ........................................................................................................ .............................15
Compulsory Water and Sewer Connections ........................................................................ .............................15
Enforcementof Charges .......................................................................................................... .............................15
UnitWater and Sewer Bills ..................................................................................................... .............................15
Collection of System Development Fees ............................................................................... .............................15
ESTIMATED SOURCES AND USES OF FUNDS ................................................................... .............................17
DEBTSERVICE SCHEDULE ..................................................................................................... .............................18
THECOUNTY ............................................................................................................................. .............................19
General...................................................................................................................................... .............................19
Board of County Commissioners ........................................................................................... .............................19
CountyManager ...................................................................................................................... .............................19
25694/006/01094478.DOCv3
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BudgetProcess ......................................................................................................................... .............................19
AnnualAudit ............................................................................................................................ .............................20
THEDISTRICT ............................................................................................................................. .............................20
Background............................................................................................................................... .............................20
Powers....................................................................................................................................... .............................21
Management............................................................................................................................. .............................21
Billingsand Collections ........................................................................................................... .............................21
THESYSTEM ............................................................................................................................... .............................22
General...................................................................................................................................... .............................22
WaterSystem ............................................................................................................................ .............................23
SewerSystem ............................................................................................................................ .............................35
Rates, Fees and Charges .......................................................................................................... .............................41
SystemDevelopment Fees ...................................................................................................... .............................47
CapitalImprovement Program .............................................................................................. .............................48
HistoricalOperating Results .................................................................................................. .............................49
RISKFACTORS ............................................................................................................................ .............................51
INVESTMENTPOLICY .............................................................................................................. .............................52
LEGALMATTERS ....................................................................................................................... .............................53
LITIGATION................................................................................................................................ .............................54
DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS .............................. .............................55
TAXEXEMPTION ....................................................................................................................... .............................55
Opinionof Bond Counsel ....................................................................................................... .............................55
Internal Revenue Code of 1986 .............................................................................................. .............................55
CollateralTax Consequences .................................................................................................. .............................56
OtherTax Matters .................................................................................................................... .............................56
Tax Treatment of Original Issue Discount ............................................................................ .............................56
BondPremium .......................................................................................................................... .............................57
VERIFICATION OF ARITHMETICAL COMPUTATIONS ................................................... .............................57
RATINGS...................................................................................................................................... .............................58
FINANCIALADVISOR .............................................................................................................. .............................58
AUDITED FINANCIAL STATEMENTS .................................................................................. .............................58
UNDERWRITING....................................................................................................................... .............................59
CONTINGENTFEES .................................................................................................................. .............................59
ENFORCEABILITY OF REMEDIES .......................................................................................... .............................59
CONTINUING DISCLOSURE ................................................................................................... .............................60
ACCURACY AND COMPLETENESS OF OFFICIAL STATEMENT ................................... .............................60
AUTHORIZATION OF OFFICIAL STATEMENT .................................................................. .............................61
APPENDIX A — General Information Regarding Collier County, Florida
APPENDIX B — Composite Resolution
APPENDIX C — Collier County Audited Financial Statements For Fiscal Year Ended September 30,
2014
APPENDIX D — Form of Bond Counsel Opinion
APPENDIX E — Form of Continuing Disclosure Certificate
25694/006/01094478.DOCv3
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OFFICIAL STATEMENT
Relating To
COLLIER COUNTY WATER -SEWER DISTRICT
Water and Sewer Refunding Revenue Bonds,
Series 2016
INTRODUCTION
This introduction is subject in all respects to the more complete information and definitions
contained or incorporated in this Official Statement and should not be considered to be a complete
statement of the facts material to making an informed investment decision. The offering by the Collier
County Water -Sewer District, a body corporate and politic in the State of Florida (the 'District') of its
$ * Water and Sewer Refunding Revenue Bonds, Series 2016 (the 'Series 2016 Bonds') to
potential investors is made only by means of the entire Official Statement, including all appendices
attached hereto. All capitalized undefined terms used in this introduction shall have the meanings
ascribed to them in 'APPENDIX B — Composite Resolution' attached hereto. All capitalized undefined
terms will have the meaning ascribed thereto in the hereinafter defined Resolution.
The County and the District
Collier County, Florida (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 2015 the County had an estimated population of 343,802. 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 Regarding Collier County, Florida' attached hereto.
The District is created pursuant to Chapter 2003 -353, Laws of Florida (the 'District Charter')
which amended, re- enacted and codified all prior acts pertaining to the District, for the purpose of
providing water and sewer services and facilities to certain unincorporated areas of the County. The
service area of the District's Water and Sewer System (the 'System') encompassed approximately 240
square miles of unincorporated Collier County. The Board of County Commissioners of the County is the
ex- officio governing board of the District.
The District previously issued its Water and Sewer Refunding Revenue Bond, Series 2009, Water
and Sewer Refunding Revenue Bond, Series 2013 and Water and Sewer Refunding Revenue Bond, Series
2015 (collectively, the 'Prior District Bonds'). The Prior District Bonds were, the Series 2016 Bonds are
being and any Additional Bonds of the District will be issued pursuant to and under the authority of
Resolution No. CWS -85 -5 adopted on July 30, 1985, as restated, amended and supplemented by
Resolution No. CWS -85 -13 adopted on December 26, 1985, as amended and supplemented, particularly
as supplemented by Resolution No. 2016 -CWS Resolution No. 2016 adopted by the governing board
" Preliminary, subject to change.
25694/006/01094478.DOCv3
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on April _, 2016 (collectively, the 'Resolution'), the Constitution of the State of Florida, the District
Charter, Chapter 153, Part II, Florida Statutes, and other applicable provisions of law.
The Series 2016 Bonds
The Series 2016 Bonds, when issued, will be dated the date of their delivery, with interest payable
on each January 1 and July 1, commencing on January 1, 2017, and will mature on July 1 in the years and
in the amounts and bear interest at the rates shown on the inside cover page of this Official Statement.
The Series 2016 Bonds are being issued in fully registered form in principal denominations of $5,000 or
integral multiples thereof, and, when issued, will be registered in the name of Cede & Co., as nominee for
The Depository Trust Company, New York, New York ('DTC'). See 'DESCRIPTION OF THE Series 2016
BONDS' herein.
Purpose of the Series 2016 Bonds
The Series 2016 Bonds are being issued, together with certain other legally available monies of the
District, to (i) currently refund all of the District's Water and Sewer Revenue Bonds, Series 2006 (the
'Refunded Bonds'), and (ii) pay certain costs of issuance of the Series 2016 Bonds. See 'PLAN OF
FINANCING' herein. The Series 2016 Bonds are being issued as 'Additional Bonds' on a parity with the
Prior District Bonds, all issued by the District pursuant to the provisions of the Resolution.
Security for the Bonds
When issued, the Series 2016 Bonds will be issued as Additional Bonds on a parity with the Prior
District Bonds. The Series 2016 Bonds, the Prior District Bonds, and any Additional Bonds, hereafter
issued pursuant to the Resolution are referred to herein as the 'Bonds.' The principal of, premium, if any,
and interest on the Bonds shall be secured by a pledge of and lien upon (i) the Net Revenues to be
derived from the operation of the System, (ii) System Development Fees, (iii) the proceeds from any and
all assessments against property benefited by the System or any part thereof ('Special Assessments'),
provided that Special Assessments shall be subject to the provisions and lien and pledge of the Resolution
only if and to the extent provision for inclusion as a part of the Pledged Funds has been made by a
supplemental resolution to be adopted by the District ('Special Assessment Proceeds'), and (iv) until
applied in accordance with the provisions of the Resolution, all moneys, including investments thereof, in
the funds and accounts established under the Resolution, except for the Revenue Fund and the Operation
and Maintenance Fund (collectively, 'Pledged Funds'). At the present time, the District has not
designated any Special Assessments to be a part of Pledged Funds relating to the Bonds. See
'SECURITY FOR THE BONDS' herein.
Reserve Account
Following the issuance of the Series 2016 Bonds and the deposit of a portion of the proceeds of
the Series 2016 Bonds therein, the Reserve Account will be fully funded in an amount equal to the
Reserve Account Requirement for the Series 2016 Bonds and the Prior District Bonds. See 'SECURITY
FOR THE BONDS - Reserve Account' herein.
25694/006/01094478.DOCv3
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Redemption Provisions
The Series 2016 Bonds are subject to optional and mandatory redemption prior to their stated
maturities as described herein. See 'DESCRIPTION OF THE Series 2016 BONDS — Redemption
Provisions' herein.
Additional Bonds
In the future, the District may issue Additional Bonds on a parity with the Series 2016 Bonds and
the Prior District Bonds. Such Additional Bonds may be issued only if the District first complies with
certain conditions set forth in the Resolution. See 'SECURITY FOR THE BONDS — Additional Bonds'
herein.
Tax Matters
In the opinion of Bond Counsel, under existing statutes, regulations, rulings and court decisions,
and assuming compliance with the tax covenants described herein, interest on the Series 2016 Bonds is
excludable from gross income for federal income tax purposes, and is not an item of tax preference for
purposes of the federal alternative minimum tax imposed on individuals and corporations. Such interest,
however, will be includable in the calculation of certain corporations' alternative minimum taxable
income. See 'TAX EXEMPTION' herein regarding certain tax considerations.
Continuing Disclosure
The District has covenanted for the benefit of Series 2016 Bondholders to provide certain financial
information and operating data relating to the District and the Series 2016 Bonds in each year, and to
provide notices of the occurrence of certain enumerated material events, in accordance with Rule 15c2 -12
of the Securities and Exchange Commission. See 'CONTINUING DISCLOSURE' herein.
Additional Information
This Official Statement speaks only as of its date and the information contained herein is subject
to change. This Official Statement contains certain information concerning DTC and its book -entry
system. Such information has not been provided by the District and the District does not certify as to the
accuracy or sufficiency of the disclosure practices or content of information provided by such parties and
is not responsible for the information provided by such parties.
A copy of the Resolution and all documents of the District referred to herein may be obtained
from Dwight E. Brock, Clerk of the Circuit Court of Collier County, Florida, Government Complex, 3301
E. Tamiami Trail, Building L, Naples, Florida 34112, Phone (239) 774 -8097.
PLAN OF REFUNDING
The District has determined that it can achieve present value savings in debt service payments by
providing for payment of the Refunded Bonds. Provision for payment will be accomplished through the
issuance of the Series 2016 Bonds and the use of a portion of the proceeds thereof, together with other
legally available monies, to currently refund the Refunded Bonds. The Refunded Bonds will be
redeemed prior to maturity on July 1, 2016 at a redemption price of 100 percent of the principal amount
thereof, plus accrued interest to the redemption date.
25694/006/01094478.DOCv3
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Upon delivery of the Series 2016 Bonds, U.S. Bank National Association, Fort Lauderdale, Florida
(the 'Escrow Agent') will enter into an Escrow Deposit Agreement (the 'Escrow Agreement') with the
District to provide for the current refunding of the Refunded Bonds. The Escrow Agreement will create
an irrevocable escrow deposit fund (the 'Escrow Fund') which will be held by the Escrow Agent. The
money and securities held in the Escrow Fund are to be applied to the payment of principal of and
interest on the Refunded Bonds, as the same become due and payable at maturity or upon redemption
prior to maturity. Immediately upon the issuance and delivery of the Series 2016 Bonds, the District will
deposit a portion of the proceeds from the sale of the Series 2016 Bonds into the Escrow Fund, together
with any legally available monies provided by the District. Substantially all of such money is expected to
be invested in certain noncallable direct obligations of the United States of America (the 'Refunding
Securities'). The maturing principal amount of and interest on the Refunding Securities and any cash
held in the Escrow Fund (i) will be sufficient to pay the principal of and interest on the Refunded Bonds
to their redemption date according to the schedules prepared by Public Financial Management, Inc. and
verified by The Arbitrage Group, Inc. (the 'Verification Agent'), (ii) will be pledged solely for the benefit
of the holders of the Refunded Bonds, and (iii) will not be available for payment of debt service on the
Series 2016 Bonds. See 'VERIFICATION OF ARITHMETICAL COMPUTATIONS' herein.
In reliance upon the above - referenced schedules, at the time of delivery of the Series 2016 Bonds,
Bond Counsel will deliver to the Underwriter and the District an opinion to the effect that the lien of the
holders of the Refunded Bonds on the Pledged Funds has ceased, terminated and become void and is
discharged and satisfied.
DESCRIPTION OF THE SERIES 2016 BONDS
General
The Series 2016 Bonds are being issued in fully registered form and will be registered initially in
the name of Cede & Co., as the nominee of DTC. Individual purchases of interests in the Series 2016
Bonds will be made in book -entry form only. Purchasers of the Series 2016 Bonds offered hereby
('Beneficial Owners') will not receive physical delivery of certificates. Transfers of ownership interests in
the Series 2016 Bonds will be effected through a book -entry system as described below. See
'DESCRIPTION OF THE Series 2016 BONDS — Book -Entry Only System' herein.
The Series 2016 Bonds will be dated the date of their delivery, and will mature on July 1 in the
years and in the amounts and bear interest at the rates shown on the inside cover page of this Official
Statement. The Series 2016 Bonds are issuable in principal denominations of $5,000 or integral multiples
thereof. Interest on the Series 2016 Bonds is payable on each January 1 and July 1, commencing on
January 1, 2017.
Payment of the Series 2016 Bonds
The principal of the Series 2016 Bonds is payable when due upon presentation and surrender
thereof only to the registered owner or his legal representative at the designated corporate trust office of
U.S. Bank National Association, Fort Lauderdale, Florida, as paying agent (the 'Paying Agent') for the
Series 2016 Bonds. Interest on the Series 2016 Bonds will be paid by the Paying Agent on each interest
payment date to the registered owner thereof shown on the registration books of the District maintained
by U.S. Bank National Association, Fort Lauderdale, Florida, as bond registrar (the 'Bond Registrar') on
the 15th day of the calendar month next preceding the interest payment date (whether or not a business
day), by check or draft mailed to such registered owner at his address as it appears on such registration
25694/006/01094478.DOCv3
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books; provided, however, that at the request and expense of a Series 2016 Bondholder, interest shall be
paid by bank wire transfer for the account of such Series 2016 Bondholder.
For so long as the Series 2016 Bonds shall be held in the DTC book -entry system (without
certificates), all such payments of principal, premium, if any, and interest on the Series 2016 Bonds will be
made to Cede & Co., as registered owner thereof, by the Paying Agent and payments to Beneficial
Owners will be the responsibility of DTC and the DTC Participants.
Exchange, Registration and Transfer
See 'DESCRIPTION OF THE SERIES 2016 BONDS — Book -Entry Only System' herein. In the
event that the book -entry only system is discontinued, the following provisions would thereafter apply.
The Series 2016 Bonds may be exchanged for a like aggregate principal amount of the Series 2016 Bonds
or other authorized denominations of the same series, interest rate, and maturity. The Series 2016 Bonds
may be transferred only upon an assignment duly executed by the registered owner or the owner's
attorney or legal representative in such form as may be satisfactory to the Bond Registrar, such transfer to
be made on the registration books of the District kept by the Bond Registrar. Any registered owner
requesting such registration, transfer, or exchange of a Series 2016 Bond may be required to pay for any
taxes, fees, expenses, or other governmental charges required to be paid with respect thereto. The District
and the Bond Registrar are not required to issue and transfer any Series 2016 Bond during the period
beginning on the 15th day of the month next preceding any interest payment date or, in the case of a
proposed redemption of any Series 2016 Bond, during the 15 days next preceding the mailing of notice of
such redemption and continuing until such redemption date.
Ownership of Series 2016 Bonds
The District, the Paying Agent, and the Bond Registrar shall deem and treat the person in whose
name any Series 2016 Bond is registered on the books maintained by the Bond Registrar as the absolute
owner of such Series 2016 Bond, whether or not such Series 2016 Bond is overdue, for the purpose of
receiving payment thereof and for all other purposes whatsoever, and neither the District, the Paying
Agent, nor the Bond Registrar will be affected by any notice to the contrary. All such payments will be
valid and effectual to satisfy and discharge the liability upon such Series 2016 Bond to the extent of the
sum or sums so paid.
Redemption Provisions
Optional Redemption
The Series 2016 Bonds are subject to redemption in whole or in part, at any time, on or after
July 1, 2026, in such order of maturities as may be determined by the District (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
2016 Bonds to be redeemed plus accrued interest to the date fixed for redemption, without premium.
Mandatory Redemption
The Series 2016 Bonds maturing on or after July 1 in the year , are subject to mandatory
sinking fund redemption by operation of the Term Bonds Redemption Account in the Sinking Fund,
prior to maturity in part, by lot, at a redemption price equal to the principal amount thereof to be
25694/006/01094478.DOCv3
5
redeemed, plus interest accrued thereon to the date of redemption, on July 1 in the following years and in
the following Sinking Fund Installments:
Amortization
Date Requirement
*Maturity
The Series 2016 Bonds maturing on July 1 in the year , are subject to mandatory sinking
fund redemption by operation of the Term Bonds Redemption Account in the Sinking Fund, prior to
maturity in part, by lot, at a redemption price equal to the principal amount thereof to be redeemed, plus
interest accrued thereon to the date of redemption, on July 1 in the following years and in the following
Sinking Fund Installments:
Amortization
Date Requirement
*Maturity
Notice of Redemption
Notice of redemption of the Series 2016 Bonds shall be mailed first class, postage prepaid, by the
Bond Registrar not less than thirty (30) days before the date fixed for redemption to the registered owners
of any Series 2016 Bonds or portions of Series 2016 Bonds that are to be redeemed, at their addresses as
they appear on the registration books kept by the Bond Registrar. Failure to mail notice, or any defect
therein, to the registered owner of any Series 2016 Bonds which are to be redeemed shall not affect the
validity of the proceedings for the redemption of Series 2016 Bonds. At the redemption date, interest shall
cease to accrue on any of the Series 2016 Bonds duly called for redemption if payment of the redemption
price has been duly made or provided for with legally available funds. Owners of such Series 2016 Bonds
shall thereafter look solely to such funds for payment.
As described under 'DESCRIPTION OF THE SERIES 2016 BONDS — Book -Entry Only System'
herein, for so long as the Series 2016 Bonds are registered in the name of DTC, Cede & Co., or any other
nominee of DTC, notice of redemption of any Series 2016 Bond will be given by the Bond Registrar only
to Cede & Co. or such other nominee as registered owner thereof, who will then be solely responsible for
selecting and notifying those DTC Participants who will in turn notify Beneficial Owners to be affected by
such redemption.
Book -Entry Only System
THE FOLLOWING INFORMATION CONCERNING DTC AND DTC'S BOOK -ENTRY ONLY
SYSTEM HAS BEEN OBTAINED FROM SOURCES THAT THE DISTRICT BELIEVES TO BE RELIABLE,
AND THE DISTRICT TAKES NO RESPONSIBILITY FOR THE ACCURACY THEREOF.
25694/006/01094478.DOCv3
6
SO LONG AS CEDE & CO. IS THE REGISTERED OWNER OF THE SERIES 2016 BONDS, AS
NOMINEE OF DTC, CERTAIN REFERENCES IN THIS OFFICIAL STATEMENT TO THE SERIES 2016
BONDHOLDERS OR REGISTERED OWNERS OF THE SERIES 2016 BONDS SHALL MEAN CEDE &
CO. AND WILL NOT MEAN THE BENEFICIAL OWNERS OF THE SERIES 2016 BONDS. THE
DESCRIPTION WHICH FOLLOWS OF THE PROCEDURES AND RECORD KEEPING WITH RESPECT
TO BENEFICIAL OWNERSHIP INTERESTS IN THE SERIES 2016 BONDS, PAYMENT OF INTEREST
AND PRINCIPAL ON THE SERIES 2016 BONDS TO DIRECT PARTICIPANTS (AS HEREINAFTER
DEFINED) OR BENEFICIAL OWNERS OF THE SERIES 2016 BONDS, CONFIRMATION AND
TRANSFER OF BENEFICIAL OWNERSHIP INTERESTS IN THE SERIES 2016 BONDS, AND OTHER
RELATED TRANSACTIONS BY AND BETWEEN DTC, THE DIRECT PARTICIPANTS AND
BENEFICIAL OWNERS OF THE SERIES 2016 BONDS IS BASED SOLELY ON INFORMATION
FURNISHED BY DTC. ACCORDINGLY, THE DISTRICT NEITHER MAKES NOR CAN MAKE ANY
REPRESENTATIONS CONCERNING THESE MATTERS.
DTC will act as securities depository for the Series 2016 Bonds. The Series 2016 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 2016 Bond certificate will be issued for each maturity of the Series 2016 Bonds as set forth in the
inside cover of this Official Statement, each in the aggregate principal amount of such maturity, 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 a Standard
& Poor's Ratings Services ('S &P') rating of AA +. The DTC Rules applicable to its DTC Participants are on
file with the SEC. More information about DTC can be found at www.dtcc.com.
Purchases of Series 2016 Bonds under the DTC system must be made by or through Direct
Participants, which will receive a credit for the Series 2016 Bonds on DTC's records. The ownership
interest of each actual purchaser of each Series 2016 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
25694/006/01094478.DOCv3
7
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 2016 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 2016 Bonds, except in the event that use of
the book -entry system for the Series 2016 Bonds is discontinued.
To facilitate subsequent transfers, all Series 2016 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 2016 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 2016 Bonds;
DTC's records reflect only the identity of the Direct Participants to whose accounts such Series 2016
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 2016 Bonds may wish to
take certain steps to augment the transmission to them of notices of significant events with respect to the
Series 2016 Bonds, such as redemptions, tenders, defaults, and proposed amendments to the security
documents. For example, Beneficial Owners of Series 2016 Bonds may wish to ascertain that the nominee
holding the Series 2016 Bonds for their benefit has agreed to obtain and transmit notices to Beneficial
Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the
Registrar and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Series 2016 Bonds within a
maturity are being redeemed, DTC's practice is to determine by lot the amount of the interest of each
Direct Participant in such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to
Series 2016 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 District 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 2016 Bonds are credited on the record date (identified in a listing
attached to the Omnibus Proxy).
Redemption proceeds, distributions, and dividend payments on the Series 2016 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 District or the Paying Agent, 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, the Paying Agent, or the District, subject to any statutory or regulatory
requirements as may be in effect from time to time. Payment of redemption proceeds, distributions and
dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized
25694/006/01094478.DOCv3
8
representative of DTC) is the responsibility of the District and /or the Paying Agent, 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 2016 Bonds
at any time by giving reasonable notice to the District or Paying Agent. Under such circumstances, in the
event that a successor depository is not obtained, the Series 2016 Bond certificates are required to be
printed and delivered.
The District may decide to discontinue use of the system of book - entry -only transfers through
DTC (or a successor securities depository). In that event, Series 2016 Bond certificates will be printed and
delivered to DTC.
SECURITY FOR THE BONDS
General
The principal of, premium, if any, and interest on the Bonds shall be secured ratably by a pledge
of the lien upon (i) the Net Revenues (Gross Revenues less Operating Expenses) to be derived from the
operation of the System ('Net Revenues'), (ii) the System Development Fees, (iii) the proceeds from any
and all assessments against property benefited by the System or any part thereof ('Special Assessments'),
provided that Special Assessments shall be subject to the provisions and lien and pledge of the Resolution
only if and to the extent provision for inclusion as part of the Pledged Funds has been made by a
supplemental resolution to be adopted by the District ('Special Assessment Proceeds'), and (iv) until
applied in accordance with the provisions of the Resolution, all moneys, including investments thereof, in
the funds and accounts established under the Resolution, except for the Revenue Fund and the Operation
and Maintenance Fund (collectively, 'Pledged Funds'). At the present time, the District has not
designated any Special Assessments to be a part of the Pledged Funds relating to the Bonds.
The 'Gross Revenues' of the System means all income and moneys received by the District from
the rates, fees, rentals, charges and other income to be made and collected by the District for the use of the
products, services and facilities to be provided by the System, or otherwise received by the District or
accruing to the District in the management and operation of the System, calculated in accordance with
generally accepted accounting methods employed in the operation of public utility systems similar to the
System, including, without limiting the generality of the foregoing, Connection Fees, AFPI and all
earnings and income derived from the investment of moneys under the provisions of the Resolution
which are transferred to the Revenue Fund or Interest Account. Gross Revenues shall not include (1) any
Government Grants, (2) System Development Fees, and (3) Special Assessments. 'AFPI' means
Allowance for Funds Prudently Invested fees, to the extent lawfully levied by the District.
'Operating Expenses' means the District's expenses for operation, maintenance, repairs and
replacements with respect to the System and shall include, without limiting the generality of the
foregoing, administration expenses, insurance and surety bond premiums, legal and engineering
expenses, ordinary and current rentals of equipment or other property, refunds of moneys lawfully due
to others, payments to others for disposal of sewage or other wastes, payments to pension, retirement,
health and hospitalization funds, and any other expenses required to be paid for or with respect to proper
operation or maintenance of the System, all to the extent properly attributable to the System in
accordance with generally accepted accounting principles employed in the operation of public utility
systems similar to the System, and disbursements for the expenses, liabilities and compensation of any
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Paying Agent or Registrar under the Resolution, but does not include any costs or expenses in respect of
original construction or improvement other than expenditures necessary to prevent an interruption or
continuance of an interruption of Gross Revenues or minor capital expenditures necessary for the proper
and economical operation or maintenance of the System, or any provision for interest, depreciation,
amortization or similar charges.
'System Development Fees' shall mean certain charges imposed by the District on Persons (as
defined in the Resolution), including developers and large users, connecting to the System or reserving
capacity in the System, which represent a pro rata share of the costs of the System which are attributable
to the increased demand such additional connections create upon the System; provided, however, that
(A) such charges shall be net of any refunds to said Persons in accordance with applicable developer or
use agreements, and (B) shall not include Connection Fees.
Generally, under Florida law, impact fees such as the System Development Fees may be validly
imposed against new construction or development in order to fund capital improvements or capacity
which are necessitated by such new construction or development or to satisfy debt service for the bonds
or other obligations issued for such purposes. Proceeds of such System Development Fees may generally
be used only for the capital improvements or capacity attributable to the new construction or
development or to pay debt service on indebtedness incurred to finance or refinance such capital
improvements or capacity.
IMPACT FEE REVENUES SUCH AS THE SYSTEM DEVELOPMENT FEES FLUCTUATE
WITH THE AMOUNT OF NEW CONSTRUCTION OR DEVELOPMENT WHICH OCCURS WITHIN
THE DISTRICT. 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 DISTRICT.
THE BONDS SHALL NOT BE DEEMED TO CONSTITUTE A GENERAL OBLIGATION OR
PLEDGE OF THE FAITH AND CREDIT OF THE DISTRICT, COLLIER COUNTY, THE STATE OF
FLORIDA OR ANY POLITICAL SUBDIVISION OF THE STATE OF FLORIDA FOR THE PAYMENT
OF THE BONDS. THE BONDS AND THE OBLIGATIONS EVIDENCED THEREBY DO NOT
CONSTITUTE A LIEN UPON ANY PROPERTY OF THE DISTRICT, COLLIER COUNTY OR THE
STATE OF FLORIDA, BUT SHALL CONSTITUTE A LIEN ONLY ON, AND PAYABLE SOLELY
FROM, THE PLEDGED FUNDS.
Rate Covenant
The District covenants that in each Fiscal Year, it will fix, establish, and maintain such rates and
collect such fees, rates, or other charges for the products, services and facilities of the System, and revise
the same from time to time, whenever necessary, as will always provide in each Fiscal Year, (A) Net
Revenues, System Development Fees and Special Assessment Proceeds adequate at all times to pay in
each Fiscal Year at least one hundred twenty five percent (125 %) of the Annual Debt Service on all
outstanding Bonds becoming due in such Fiscal Year, and (B) Net Revenues in each Fiscal Year adequate
to pay at least one hundred percent (100 %) of the Annual Debt Service on all outstanding Bonds and any
required deposits to the Reserve Account becoming due in such Fiscal Year. Such rates, fees, or other
charges shall not be so reduced so as to be insufficient to provide adequate Net Revenues, System
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Development Fees and Special Assessment Proceeds for the purposes provided therefor by the
Resolution.
Funds and Accounts
The District covenanted and agreed in the Resolution to establish with a bank, trust company or
such other entity in the State, which is eligible under the laws of the State to be a depository for county
funds the following funds and accounts: the 'Revenue Fund,' the 'Operation and Maintenance Fund,'
the 'Sinking Fund' (in which the District shall maintain four separate accounts being the 'Interest
Account,' the 'Principal Account,' the 'Term Bonds Redemption Account' and the 'Reserve Account'),
the 'System Development Fees Funds,' the 'Special Assessments Fund,' the 'Renewal and Replacement
Fund,' the 'System Surplus Fund' and the 'Construction Fund' with the '2016 Account' therein.
Moneys in the aforementioned funds and accounts, until applied in accordance with the
provisions of the Resolution, shall be subject to a lien and charge in favor of the Holders of the Bonds and
for the further security of such Holders.
Separate Accounts
The moneys required to be accounted for in each of the funds, accounts and subaccounts
established in the Resolution may be deposited in a single, non - exclusive bank account, and funds
allocated to the various funds, accounts and subaccounts established in the Resolution may be invested in
a common investment pool, provided that adequate accounting records are maintained to reflect and
control the restricted allocation of the moneys on deposit therein and such investments for the various
purposes of such funds, accounts and subaccounts as provided in the Resolution.
The designation and establishment of the various funds, accounts and subaccounts in and by the
Resolution shall not be construed to require the establishment of any completely independent, self -
balancing funds as such term is commonly defined and used in governmental accounting, but rather is
intended solely to constitute an earmarking of certain revenues for certain purposes and to establish
certain priorities for application of such revenues as provided in the Resolution.
Disposition of Revenues
A. The District has covenanted to deposit all Gross Revenues into the Revenue Fund and all
Special Assessment Proceeds into the Special Assessments Fund. Moneys in the Revenue Fund shall first
be used each month to deposit in the Operation and Maintenance Fund such sums as are necessary to pay
Operating Expenses for the ensuing month.
B. AFPI shall be deposited, as received, in a separate account of the Revenue Fund
maintained by the District. AFPI shall be utilized by the District for lawful purposes related to the
System including, but not limited to, acquisition and construction of improvements and additions to the
System which provide capacity to new users and payment of debt service on obligations related thereto.
C. All moneys at any time on deposit in the Special Assessments Fund and any deposits
remaining in the Revenue Fund after the aforementioned transferals to the Operation and Maintenance
Fund shall be disposed of by the District, on or before the 25th day of each month, first from the Special
Assessments Fund and then from the Revenue Fund as follows: first to the Interest Account, a sum
which, together with the balance therein, shall be equal to the interest accruing on all Bonds for said
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month; second, to the Principal Account, a sum which, together with the balance therein, shall be sum
equal to the principal accruing on all Bonds in said month; third, commencing in the month which is one
year prior to the first Sinking Fund Installment, to the Term Bonds Redemption Account a sum which,
together with the balance therein, shall be equal to the Sinking Fund Installment accruing on all Bonds in
said month; fourth, to the Reserve Account such sum, if any, as will be necessary to, within 24 months,
restore the funds on deposit therein to an amount equal to the Reserve Account Requirement; fifth, to the
Renewal and Replacement Fund such sums as shall be sufficient to pay one - twelfth (1/12) of five percent
(5 %) of the Gross Revenues derived from the System during the preceding Fiscal Year (or such other
required amount as certified to by the Consulting Engineers) until the amount accumulated in such Fund
is equal to the Renewal and Replacement Fund Requirement; sixth, such sums as may be necessary for
the payment of any accrued debt service on Subordinated Indebtedness in accordance with the
proceedings authorizing such Subordinated Indebtedness; seventh, to the Interest Account, the Principal
Account and the Term Bonds Redemption Account, in that order, sufficient moneys such that the
amounts on deposit therein shall equal, respectively, the interest, principal and Sinking Fund Installment
next coming due on the Bonds outstanding, except that no deposit need be made to the Principal Account
or Term Bonds Redemption Account until a date one year preceding the due date of such principal
amount or Sinking Fund Installment; and eighth, the balance of any Gross Revenues remaining in said
Revenue Fund shall be deposited in the Surplus Fund and applied to the payment, on or prior to each
principal and interest payment date for the Bonds, into the Interest Account, the Principal Account and
the Term Bonds Redemption Account when the moneys therein shall be insufficient to pay the principal
of and interest on the Bonds coming due. Moneys not required to meet such a deficiency may be applied
for any lawful purpose in connection with the System.
D. Income received from the investment and reinvestment of moneys on deposit in the
Surplus Fund, the Renewal and Replacement Fund (to the extent such income and other amounts on
deposit therein exceed the Renewal and Replacement Fund Requirement), and the Reserve Account (to
the extent such income and other amounts on deposit therein exceed the Reserve Account Requirement)
shall be transferred to the Revenue Fund and used in the same manner as the money on deposit therein.
See 'APPENDIX B — Composite Resolution' attached hereto for a more complete description of
the provisions of the Resolution providing for the disposition of revenues.
System Development Fees Fund
The District shall deposit into the System Development Fees Fund all System Development Fees
as received and such System Development Fees shall be accumulated in the System Development Fees
Fund and applied by the District in the following manner and order of priority:
A. For the payment on or prior to each principal and interest payment date (in no event
earlier than the twenty -fifth (25th) day of the month next preceding such payment date) into the Interest
Account, the Principal Account and the Term Bonds Redemption Account, when the moneys therein are
insufficient to pay the principal of and interest on the Bonds coming due, as further provided in the
Resolution.
B. To pay the cost of acquiring and /or constructing extensions, improvements or additions
to the System in accordance with the plans and specifications provided by the Consulting Engineers and
the requisitions for disbursement of moneys provided by the District.
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C. To be used for any other lawful purpose relating to the System.
No Reserve Account
The County has not established a separate subaccount in the Reserve Account to secure the Series
2016 Bonds. The Series 2016 Bonds will not be secured by any amount in the Reserve Account or any
subaccount therein.
Additional Bonds
The District may, from time to time, issue Additional Bonds under the Resolution on a parity
with the Series 2016 Bonds and the Prior District Bonds, subject to certain conditions set forth in the
Resolution. Additional Bonds shall only be issued by the District for financing the cost of completion of a
Project, financing the cost of an Additional Project, or the completion thereof, or refunding any and all
outstanding Bonds or any subordinated indebtedness of the District.
No Additional Bonds shall be issued unless:
(1) Except in the case of Additional Bonds issued for the purpose of refunding outstanding
District Bonds, the District shall certify that it is current in all deposits into the various funds and
accounts established by the Resolution and all payments theretofore required to have been deposited or
made by it under the provisions of the Resolution and that the District has complied with the covenants
and agreements of the Resolution.
(2) An independent certified public accountant shall certify to the District that the amount of
the Net Revenues received during the immediate preceding Fiscal Year or any twelve (12) consecutive
months selected by the District of the twenty -four (24) months immediately preceding the issuance of
said Additional Bonds, adjusted as provided in the Resolution, will (a) be equal to at least one hundred
percent (100 %) of the Maximum Annual Debt Service of the outstanding Bonds and the Additional Bonds
then proposed to be issued, and (b) when added to the Special Assessment Proceeds and the System
Development Fees, adjusted as hereinafter provided, received by the District during such 12 -month
period, be equal to at least one hundred twenty -five percent (125 %) of the Maximum Annual Debt Service
of the outstanding Bonds and the Additional Bonds then proposed to be issued.
The Net Revenues, the System Development Fees and the Special Assessment Proceeds
calculated pursuant to the foregoing paragraphs may be adjusted by the independent certified public
accountants upon the written advice of the Consulting Engineers, at the option of the District, as more
fully set forth in the Resolution. See 'APPENDIX B — Composite Resolution' attached hereto.
In the event any Additional Bonds are issued for the purpose of refunding any Bonds then
outstanding, the conditions of paragraphs (1) and (2) above shall not apply, provided that the issuance of
such Additional Bonds shall not result in an increase in the aggregate amount of principal of and interest
on the outstanding Bonds becoming due in the then current Bond Year and all subsequent Bond Years.
The conditions of said paragraph (2) shall apply to Additional Bonds issued to refund Subordinated
Indebtedness.
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Subordinated Indebtedness
The District may, at any time or from time to time, issue evidences of indebtedness payable in
whole or in part out of Pledged Funds and which may be secured by a pledge of Pledged Funds
subordinated in all respects to the pledge of the Pledged Funds created by the Resolution.
The District has also pledged and created a lien upon certain revenues of the System for the
benefit of the Florida Department of Environmental Protection ( "FDEP ") in connection with eleven loans
to the District under the State Revolving Fund loan program (the "SRF Loans'). Such pledge and lien are
junior and subordinate in all respects to the pledge and lien on Pledged Funds in favor of the holders of
the Bonds. The SRF Loans each have a fixed rate of interest. As of September 30, 2015, $
was the estimated outstanding principal under the SRF Loans. The projected amount for annual debt
service payments on the SRF Loans in the fiscal year ending September 30, 2016 is $
In the event of a default under the SRF Loans, FDEP has the ability to enforce certain remedies
under the SRF Loans, including, but not limited to, acceleration of the repayment schedule, increasing the
interest rate on the SRF Loans by as much as 3.33 times the stated interest rate and the appointment of a
receiver.
While any such acceleration might adversely affect the District's ability to meet its financial
requirements as disclosed herein, the loan agreements of the District authorizing the SRF Loans contain
separate rate covenants to help ensure the availability of revenues for the payment of such obligations.
The SRF Loans require that the District shall impose rates for the services of the District which will
produce revenues pledged to the SRF Loans in an amount not less than 115% of debt service on all
bonded indebtedness of the District and not less than 125% of the annual payments under the loan
agreements which apply to the SRF Loans.
No Mortgage or Sale of the System
The District irrevocably covenanted, bound and obligated itself in the Resolution not to sell,
lease, encumber or in any manner dispose of the System as a whole or any substantial part thereof (except
as provided in the Resolution) until all of the Bonds and all interest thereon shall have been paid in full or
provision for payment has been made.
The foregoing provision notwithstanding, the District has reserved the right to sell, lease or
otherwise dispose of any of the property comprising a part of the System in the manner provided in the
Resolution, if any one of the following conditions exist: (A) such property is not necessary for the
operation of the System, (B) such property is not useful in the operation of the System, (C) such property
is not profitable in the operation of the System, or (D) in the case of a lease of such property, will be
advantageous to the System and will not adversely affect the security for the Bondholders.
No Free Service
The District covenants that it will not render, or cause to be rendered, any free services of any
nature by its System or any part thereof, nor will any preferential rates be established for users of the
same class, and in the event the District or the County, or any department, agency, instrumentality, office
or employee thereof, shall avail itself of the System or services provided by said System or any part
thereof, the same rates, fees or charges applicable to other customers receiving like services under similar
circumstances shall be charged the District, the County and any such department, agency,
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instrumentality, officer or employee. The revenues so received shall be deemed to be Gross Revenues
derived from the operation of the System, and shall be deposited and accounted for in the same manner
as other Gross Revenues.
No Impairment of Rights
The District covenants not to enter into any contract or contracts, nor take any action, the results
of which might impair the rights of the Holders of the Bonds and that it will not permit the operation of
any competing water or sewer service facilities in the District; provided, however, the District reserves
the right to permit the ownership and operation of water or sewer service facilities or both by itself or by
others in any territory which is not in any service area now or hereafter served by the System.
Compulsory Water and Sewer Connections
In order better to secure the prompt payment of principal and interest on the Bonds, as well as for
the purpose of protecting the health and welfare of the inhabitants of the District, and acting under
authority of the general laws of Florida, the District will require (A) every owner of each lot in the District
which abuts upon any street or public way containing a sewer line forming a part of the sewer facilities of
the System and upon which lot a building shall subsequently be constructed for residential, commercial
or industrial use, to connect such building to such sewer facilities and to cease to use any other method
for the disposal of sewage waste or other polluting matter, and (B) every owner of each lot in the District
which abuts upon any street or public way containing a water line forming a part of the water facilities of
the System and upon which lot a building shall subsequently be constructed for residential, commercial
or industrial use, to connect such building to such water facilities.
Enforcement of Charges
The District will compel the prompt payment of rates, fees and charges imposed for service
rendered on every lot or parcel connected with the System, and to that end will vigorously enforce all of
the provisions of any ordinance or resolution of the District having to do with sewer and water
connections and charges, and all of the rights and remedies permitted the District under law, including
the requirement for the making of a reasonable deposit by each user, the requirement for disconnection of
all premises delinquent in the payment, and the securing of injunction against the disposition of sewage
or industrial waste into the sewer facilities of the System by any premises delinquent in the payment of
such charges.
Unit Water and Sewer Bills
In every instance in which a building or structure on a lot is connected to the sewer facilities of
the System, which building or structure is also connected to the water facilities of the System and receives
water therefrom, the District will submit to the owner or occupant of such lot a single bill for both water
and sewer service and will refuse to accept payment for either the water charge along or sewer charge
along without payment of the other.
Collection of System Development Fees
The District will proceed diligently to perform legally and effectively all steps required in the
imposition and collection of the System Development Fees. Upon the due date of any such System
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Development Fees, the District will diligently proceed to collect the same and will exercise all legally
available remedies to enforce such collections now or hereafter available under State law.
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ESTIMATED SOURCES AND USES OF FUNDS
The proceeds to be received from the sale of the Series 2016 Bonds, together with other legally
available monies of the District, are expected to be applied as follows:
SOURCES:
USES:
Principal Amount of Series 2016 Bonds
Plus /Less Net Original Issue Premium /Discount
Total Sources
Deposit to 2016 Escrow Fund
Costs of Issuance(2)
Total Uses
�l> Includes Underwriter's discount, legal, financial advisory and other fees and expenses associated
with the issuance of the Series 2016 Bonds.
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DEBT SERVICE SCHEDULE
The following table sets forth the debt service for the Series 2016 Bonds and the Prior District
Bonds.
Year Ended
1W y-1
1
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
TOTAL
Series 2016 Bonds
Prior Total
Principal Interest Debt Service District Bonds Debt Service
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THE COUNTY
General
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 2015 the
County had an estimated population of 343,802. 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 Regarding Collier County, Florida' attached hereto.
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 Board
serves as the ex- officio governing board of the District. The current members of the Board and their
expiration of terms of office are:
Commissioner
Office
Term Expires
Donna Fiala
Chairwoman
November, 2016
Tim Nance
Vice Chair
November, 2016
Tom Henning
Commissioner
November, 2016
Georgia A. Hiller, Esq.
Commissioner
November, 2018
Penny Taylor
Commissioner
November, 2018
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 Finance and Accounting (the 'Director') initiates the budget
planning process in January with budget policy discussions among key members of the fiscal and
administrative leadership team. These discussions culminate in the presentation and adoption of budget
policy and guidance by the Board in February. County division heads and elected officers submit their
proposed expenditures beginning in April for compilation by the Director no later than July 1 of each
year and each submission is matched against available revenues. A balanced, proposed budget is
presented to the Board for review within 15 days of receipt of an assessed value certification from the
County's Property Appraiser which is due by July 1. A tentative budget is thereupon adopted within 15
days.
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Subsequent to public hearings, a final budget is adopted. The final budget for the fiscal year
ended September 30, 2016 was adopted by the Board on September 20, 2015. 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, 2014. The Comprehensive Annual
Financial Report for the fiscal year ended September 30, 2014 appears in APPENDIX C attached to this
Official Statement. The County expects the Auditors' report for the fiscal year ended September 30, 2015
to be available in late April, 2016. When publicly available, such Auditors' report will be (i) included in
the final Official Statement, potentially as a supplement thereto (if it becomes available after the
marketing of the Series 2016 Bonds and before closing), or (ii) filed by or on behalf of the County with the
Municipal Securities Rulemaking Board ('MSRB') through the Electronic Municipal Market Access
system ('EMMA') in an electronic format prescribed by the MSRB (if it becomes available after the
closing of the Series 2016 Bonds).
The Governmental Accounting Standards Board (GASB) issued Statement No. 68, 'Accounting
and Financial Reporting for Pensions' ('GASB No. 68') — an amendment to GASB Statement No. 27,
'Accounting for Pensions by State and Local Governmental Employers', which is effective for the
County's fiscal year ended September 30, 2015. For a more complete description of GASB No. 68 and its
effect on the County's financial reporting, see 'APPENDIX A— Florida Retirement System'.
THE DISTRICT
Background
In 1969, the citizens of the County adopted a referendum authorizing the Board to create the
District under Chapter 153, Part II, Florida Statutes, as a body corporate and politic in the State of Florida,
in order to plan, develop and operate public water and sewer facilities for existing and future
development within the County. The District exists pursuant to District Charter which amends, re- enacts
and codifies previous special acts and amendments thereto pursuant to which the District was originally
created. The District was created and exists under the authority of the District Charter for the purpose of
providing water and sewer services and facilities to certain unincorporated areas of the County. The
water service area of the District presently covers approximately 230 square miles of unincorporated
Collier County and the sewer service area of the District presently covers approximately 240 square miles
of unincorporated Collier County (the difference in the two service areas is due to a portion of the County
receiving water only service from the City of Naples). The District's water and sewer system (the
'System') is owned and operated by the District, the ex- officio governing board of which is the Board.
See 'THE SYSTEM' herein.
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Powers
The District has the power to construct, install, acquire and to operate, improve, extend, enlarge
and reconstruct a water and sewer system within the District and to have the exclusive control and
jurisdiction thereof; to issue its revenue bonds or assessment bonds to pay all or part of the cost of such
improvements; to fix and collect rates, fees and other charges (including impact fees which are referred to
as System Development Fees) to persons or property or both for the use of the facilities and services
provided; and to acquire such lands and rights thereon as it may deem necessary, including by eminent
domain.
Management
The Collier County Public Utilities Department operates the public water and sewer facilities for
the District. The Public Utilities Department Head reports to the Deputy County Manager. The District
currently has 382 budgeted full time equivalent ('FTE') employees managing and operating the water
and sewer utilities including administration, financial operations, engineering, water operations and
sewer operations. The sewer operations section consists of 137 FTE employees. The water operations
section consists of 128 FTE employees. The following individuals comprise the senior management of the
Public Utilities Department:
G. George Yilmaz, Ph.D., P.E., P.H., Public Utilities Department Head. Dr. Yilmaz assumed
duties as the Collier County Public Utilities Department Head in 2012.
Dr. Yilmaz holds Master of Science degrees in Civil Engineering and in Ocean Engineering as
well as a Doctor of Philosophy in Engineering -Water Resource Management. He is a Licensed
Professional Engineer (P.E), Licensed Professional Hydrologist (P.H.), and Registered Environmental
Professional (R.E.P.), and a member of the National Council of Examiners for engineering and Surveying
(N.C.E.E.S.).
He has both private and public sector leadership experience including Transportation /Traffic
Optimization, Combined Stormwater /Sewer Systems, and Water Resources and Utility Management.
Joseph G. (Joe) Bellone, Director of Financial Operations Support for Public Utilities. Prior to
joining the District in October 2003, Mr. Bellone was employed by Staples Inc. for 8 years in a succession
of financial positions both domestically and in Europe. These positions included Manager Financial
Planning and Analysis at the Staples headquarters in Massachusetts and Finance Manager for Staples
International in Brussels. He started his career in finance with General Electric at GE's International
Financial Operations offices in New York City, Brussels, and Research Triangle Park in North Carolina.
Mr. Bellone then held increasingly responsible financial positions in the publishing industry in
Massachusetts. Mr. Bellone is a graduate of New York University, New York, N.Y., with a Bachelor of
Arts degree in Economics. He also graduated with a Master's Degree in Business Administration with a
concentration in Finance from Suffolk University, Boston, Massachusetts.
Billings and Collections
Utility Billing and Customer Service is responsible for the District's customer service, which
includes billing and collection of customer fees and charges levied for the services provided by the
District. Bills for services are rendered monthly and are due and payable twenty days after the bills are
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mailed. Service is discontinued if bills are not paid within thirty -five days after bills are rendered. The
District's Utility Billing and Customer Service section is part of the Financial Operations Support
Division, managed by two senior level managers who oversee the day to day activities.
Meters are read monthly at approximately thirty -day intervals. Billings are made on the basis of
forty -one staggered billing cycles per month. The read -to -bill time is approximately four days. Bills are
printed by a third party contractor and delivered to a U.S. postal facility on the same day they are
printed. Use of a lockbox, bank drafts and credit cards increases the efficiency and level of service in the
receipt and processing of payments. Customer accounts are updated daily and over - the - counter
payments are deposited on the day of receipt. Financial records of billings and receipts are accounted for
on a monthly basis.
A state -of- the -art Customer Relationship Management (CRM) and billing system was installed in
February 2003. This CRM solution enhances both customer service and operational efficiency. As part of
the implementation of an Enterprise Asset Management system in Fiscal Year 2016, an updated CRM is
contemplated. A telephone call center system was installed in 2004. Customers can access their account
(24 hours a day, seven days a week) over the Internet for account information and to make payments. An
Interactive Voice Response (IVR) system is used to provide courtesy calls to customers pending turn -off
for non - payment. The IVR capabilities were expanded in 2014 to allow customers query account
information (24 hours a day, seven days a week) and to make payments on their accounts (credit card,
debit card and e- checks) over the phone without talking to a service representative. Electronic Bill
Presentation and Payment (e -bill) capabilities were implemented in Fiscal Year 2011.
The District has all of its utility meters, except for certain compound meters, in a radio read
environment. Radios read meters increase accuracy of meter reads and provide staff efficiencies. The
radio read software generates trouble reports, which are addressed between the meter read process and
the bill production stage.
THE SYSTEM
General
The System is comprised of both water production, transmission, treatment and distribution
facilities, and sewage collection, transmission, treatment and disposal facilities which are owned and
operated by the District. The service area of the System is generally bounded on the north by the Lee
County line, on the west by the Gulf of Mexico and the limits of the City of Naples service area, on the
south by the Collier Seminole State Park, and on the east by County Road 951. The following table
illustrates the historical growth of the System based on Equivalent Residential Connections ('ERCs ") and
customer accounts as of each fiscal year end.
25694/006/01094478.DOCv3
22
Historical Sewer System and Water System
Equivalent Residential Connections
and Water and Sewer Accounts
Number of
Sewer System Water System Water and Sewer Account
Year ERCs(l) ERCs(1) Accounts(2) Growth
2010 86,303 82,710 58,655 - -%
2011 88,012 84,520 59,700 1.8
2012 88,691 86,211 60,736 1.7
2013 90,627 88,280 62,333 2.6
2014 92,438 91,147 63,682 2.2
2015 95,246 94,439 65,454 2.%
�l> An Equivalent Residential Connection ('ERC') is a standard level of service based on a typical
single family home equivalency and is equal to 350 gpd for water service and 250 gpd for sewer
service, and is calculated for purposes of this table, based on estimated population in the service
area divided by an assumed number of persons per ERC.
(2) Reflects actual number of metered accounts, including.
Source: ERC's - Public Resources Management Group, Inc.; Accounts — Collier County Water -Sewer
District
Water System
General
The Water System includes three wellfields, two regional water treatment plants, six distribution
system pumping stations, 38.25 million gallons of tank storage, and over 960 miles of combined
transmission mains.
Water Production and Demands
When considering demand projections as they relate to planning for water facilities, the
following demand conditions are typically analyzed:
• Annual Average Daily Demand ('AADD'): Total water supplied in one year divided by
the number of days in that year.
• Maximum Month Daily Demand ('MMDD'): Maximum quantity of water supplied
during a single month during a one -year period, divided by the number of days in the
month. The District utilizes the MMDD for sizing water supply and treatment facilities.
For estimating projected demands, the MMDD is 1.2 times the AADD.
• Maximum Day Demand ('MDD'): Maximum quantity of water supplied in a single day
during a one year period. For estimating projected demands, the MDD is 1.35 times the
AADD.
25694/006/01094478.DOCv3
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• Maximum 3 Day Demand ('M3DD'): Average of the maximum quantity of water
supplied in three consecutive days. For estimating projected demands, the M3DD is 1.3
times the AADD.
Historical water production data is summarized in the following table:
Historic Finished Water Production(')
MG = Million Gallons
MGD = Million Gallons Per Day
gpcd = gallons per capita per day
�l> Includes residential and commercial (general service) water demands; per capita based on
estimated permanent population served as prepared by the Growth Management Department's
Comprehensive Planning Division.
Source: Collier County Water -Sewer District
As can be seen above, the trend in finished water demands during the period from 2008 through
2010, during the height of the economic recession shows declines in average daily flow from the historical
highs in 2007. Steady increases that are evident in the data beginning in 2011 are expected to continue at
a comparable rate as the economy improves and population shifts continue.
Water Supply
Hydrogeology
The hydrogeology of the County is characterized by three major aquifer systems: the Surficial
Aquifer System ('SAS'), the Intermediate Aquifer System ('IAS'), and the Floridan Aquifer System
('FAS'). These three aquifer systems underlie the entire County and contain numerous individual
aquifers that are separated by intervening low permeability confining units. Higher permeabilities
indicate higher yield potential as a raw water source.
The SAS is located within approximately 120 feet of the land surface and includes the water table
(the upper limit of the portion of the ground wholly saturated with water) and Lower Tamiami Aquifer.
The water table and the Lower Tamiami Aquifer are the most cost effective sources of raw water, since
25694/006/01094478.DOCv3
24
Annual
Maximum
Per Capita
Annual
Average Daily
Month Daily
Maximum
Maximum 3
Demand
Demand
Demand
Demand
Day Demand
Day Demand
Loss
AD
AADD
MMDD
MDD
M3DD
Year
(gpcd)
(MG)
(MGD)
(MGD)
(MGD)
(MGD)
2010
170
7,777
21.3
23.1
28.1
26.4
2011
170
8,249
22.6
26.2
29.4
27.9
2012
170
8,198
22.4
26.1
29.8
27.9
2013
170
8,067
22.1
26.8
30.4
28.7
2014
150
8,734
23.9
27.4
30.0
29.3
2015
150
8,833
24.2
28.0
31.3
30.1
Percent Change
12% °
14%
14%
21%
11%
14%
2010 -2015
MG = Million Gallons
MGD = Million Gallons Per Day
gpcd = gallons per capita per day
�l> Includes residential and commercial (general service) water demands; per capita based on
estimated permanent population served as prepared by the Growth Management Department's
Comprehensive Planning Division.
Source: Collier County Water -Sewer District
As can be seen above, the trend in finished water demands during the period from 2008 through
2010, during the height of the economic recession shows declines in average daily flow from the historical
highs in 2007. Steady increases that are evident in the data beginning in 2011 are expected to continue at
a comparable rate as the economy improves and population shifts continue.
Water Supply
Hydrogeology
The hydrogeology of the County is characterized by three major aquifer systems: the Surficial
Aquifer System ('SAS'), the Intermediate Aquifer System ('IAS'), and the Floridan Aquifer System
('FAS'). These three aquifer systems underlie the entire County and contain numerous individual
aquifers that are separated by intervening low permeability confining units. Higher permeabilities
indicate higher yield potential as a raw water source.
The SAS is located within approximately 120 feet of the land surface and includes the water table
(the upper limit of the portion of the ground wholly saturated with water) and Lower Tamiami Aquifer.
The water table and the Lower Tamiami Aquifer are the most cost effective sources of raw water, since
25694/006/01094478.DOCv3
24
the water in these sources is generally fresh, resulting in low treatment costs, and the aquifers are
shallow, so drilling expenses are relatively low. Generally, the water table and Lower Tamiami Aquifers
have moderately high permeabilities and are widely used in the District to supply water to private
homeowners for potable and irrigation needs.
Withdrawals from these aquifers are severely restricted during the dry season due to the
potential for adverse environmental impacts, making the permitting of an additional large centralized use
from either of these sources unrealistic. The future development of a large public supply wellfield
tapping this source may be limited.
The IAS is located between approximately 120 feet and 750 feet beneath the land surface and
includes the Sandstone and Hawthorn Zone I Aquifers. The Sandstone Aquifer is the uppermost
hydrologic unit of the IAS. This aquifer is rarely used as a water source in the District because of its
relatively low yield. The underlying Hawthorn Zone I Aquifer is a brackish water resource with low to
moderate permeability. The FAS, which underlies all of Florida and parts of Georgia and South Carolina,
is one of the most productive aquifers in the United States, and includes the Lower Hawthorn Aquifer.
The FAS is located between approximately 750 feet and 2,100 feet beneath the land surface and
includes the Lower Hawthorn, Suwannee, Ocala and Avon Park Aquifers. The uppermost Lower
Hawthorn Aquifer has low to high permeabilities and is currently used by the District as a brackish raw
water source.
The Suwannee and Ocala Aquifers generally have low permeabilities and brackish to saline
quality groundwater. The Avon Park Aquifer, the deepest of the formations in the FAS, has relatively
high permeabilities and a saline quality groundwater. Although a potentially productive source, the
Avon Park Aquifer could be a costly raw water source due to increased drilling costs of wells and
increased treatment costs of a highly saline groundwater.
Existing Water Supply
Currently, the District obtains water from three existing wellfields: (i) the Golden Gate Tamiami
Wellfield, which taps the Lower Tamiami Aquifer; (ii) the North Hawthorn Wellfield, which taps the
Lower Hawthorn and Hawthorn Zone I Aquifers; and (iii) the South Hawthorn Wellfield, which taps
Hawthorn Zone I and Lower Hawthorn Aquifers. The Golden Gate Tamiami and the North Hawthorn
Wellfields are located near the North County Regional Water Treatment Plant ( NCRWTP). The South
Hawthorn Wellfield is located near the South County Regional Water Treatment Plant ( SCRWTP). The
Golden Gate Tamiami Wellfield supplies raw water to both the NCRWTP and the SCRWTP through a
raw water booster pumping station and transmission mains.
With respect to raw water withdrawals, the Water System is currently regulated by SFWMD,
which is a public entity of the State of Florida established as a multipurpose water management district
that has the responsibility of managing the water resources within its boundaries (i.e., southern Florida).
SFWMD regulates raw water withdrawals and is authorized to require permits for the consumptive use
of water. All significant water users within south Florida, including the District, require permission to
withdraw raw water through the issuance of a water user permit by the SFWMD. A permit is issued by
the SFWMD when an entity such as the District demonstrates that the water use is consistent with the
public interest, is a reasonable beneficial use of water, and will not interfere with any presently existing
legal use of water. The District recently obtained unified water use Permit Number 11- 00249 -W (all wells
25694/006/01094478.DOCv3
25
included in a single water use permit) extending through September 29, 2036, which is summarized in the
following table:
Unified Water Use Permit Issued by
SFWMD for Public Water Suyyly
(1) Number of wells taken from SFWMD CUP (Permit Number 11- 00249 -W)
(2) Existing production well 8 has been capped and is out of service
(3) Includes 17 proposed future wells as included in the SFWMD CUP.
(4) Limiting condition 5 of the SFWMD CUP provides for a total annual allocation of 55.53 MGD,
and limits annual withdrawals from specified sources as identified above. However, the
allocation for the Lower Hawthorn Aquifer with overlap is 19.52 MGD.
MGD = Million Gallons Per Day
Source: AECOM
The current Lower Tamiami Aquifer water supply at the Golden Gate Tamiami Wellfield has a
permitted capacity of 9,672 million - gallons (MG) per year (26.50 MGD- AADD). The Hawthorn Zone I
Aquifer water supply at the North and South Hawthorn Wellfields has a permitted capacity of 5,840 MG
per year (16.0 MGD- AADD), and the Lower Hawthorn Aquifer water supply has a permitted capacity of
4,755 MG per year (13.03 MGD- AADD). The total annual allocation for all aquifers is 20,268 MG per year
(55.53 MGD- AADD). The permit limits the use of fresh groundwater resources to 26.5 MGD and brackish
water to 29.03 MGD (35.52 MGD with overlap). Limited Condition 5 of the SFWMD CUP 11- 00249 -W
allows for an allocation up to 26.5 MGD from fresh groundwater resources through September 29, 2036.
Wellfield Capacity
Based on Public Utilities Department Reliability Guidelines, February 2006, the operational
capacity of a wellfield must include additional capacity equal to 20% of the raw water requirement for the
Tamiami wellfield (fresh groundwater resource) and 33% of the raw water requirement for the Hawthorn
wellfields (brackish groundwater resource).
25694/006/01094478.DOCv3
26
SFWMD
Wellfield Firm
Wellfield Firm
CUP
Capacity
Capacity
#
Allocation
(SFWMD
(CCWSD
Wellfield/
Water
of
(AADF
Permit)
Inventory)
Aquifer
Source
Wells(')
MGD)
(MGD)
(MGD)
Golden Gate
Fresh
Tamiami
Ground
37(2)
26.50(4)
44.93
37.09
Wellfield
Water
Brackish
Hawthorn
Ground
46
16.00(4)
Zone 1 Aquifer
Water
96.91
60.59
Lower
Brackish
Hawthorn
Ground
42(3)
13.03(4)
Aquifer
Water
TOTAL
125
55.53(4)
141.8
97.7
(1) Number of wells taken from SFWMD CUP (Permit Number 11- 00249 -W)
(2) Existing production well 8 has been capped and is out of service
(3) Includes 17 proposed future wells as included in the SFWMD CUP.
(4) Limiting condition 5 of the SFWMD CUP provides for a total annual allocation of 55.53 MGD,
and limits annual withdrawals from specified sources as identified above. However, the
allocation for the Lower Hawthorn Aquifer with overlap is 19.52 MGD.
MGD = Million Gallons Per Day
Source: AECOM
The current Lower Tamiami Aquifer water supply at the Golden Gate Tamiami Wellfield has a
permitted capacity of 9,672 million - gallons (MG) per year (26.50 MGD- AADD). The Hawthorn Zone I
Aquifer water supply at the North and South Hawthorn Wellfields has a permitted capacity of 5,840 MG
per year (16.0 MGD- AADD), and the Lower Hawthorn Aquifer water supply has a permitted capacity of
4,755 MG per year (13.03 MGD- AADD). The total annual allocation for all aquifers is 20,268 MG per year
(55.53 MGD- AADD). The permit limits the use of fresh groundwater resources to 26.5 MGD and brackish
water to 29.03 MGD (35.52 MGD with overlap). Limited Condition 5 of the SFWMD CUP 11- 00249 -W
allows for an allocation up to 26.5 MGD from fresh groundwater resources through September 29, 2036.
Wellfield Capacity
Based on Public Utilities Department Reliability Guidelines, February 2006, the operational
capacity of a wellfield must include additional capacity equal to 20% of the raw water requirement for the
Tamiami wellfield (fresh groundwater resource) and 33% of the raw water requirement for the Hawthorn
wellfields (brackish groundwater resource).
25694/006/01094478.DOCv3
26
Approximately 31.79 MGD (26.5 MGD fresh raw groundwater requirement X 1.20) of fresh
groundwater well capacity is required to provide 24.0 MGD of potable water. Similarly, 49.65 MGD
(37.33 MGD brackish raw groundwater requirement X 1.33) of brackish groundwater well capacity is
required to provide 28.0 MGD of potable water. The existing wellfields total permitted capacities is 44.93
MGD and 96.91 MGD for the fresh groundwater and brackish groundwater wellfields, respectively. The
existing wellfields total constructed capacity based on the CCWSD's inventory, which does not include
proposed wells or inactive wells, is 37.09 MGD and 60.59 MGD for fresh groundwater and brackish
groundwater wellfields, respectively. Expansion of the wellfield capacity by 6 MGD would be required
using one of the following alternatives:
• An expansion of 6.0 MGD treatment capacity (required to meet the projected M3DD
through the year 2034) using a fresh groundwater treatment process would require an
additional 2.12 MGD of fresh groundwater wellfield constructed capacity based on the
CCWSD's inventory. (No additional groundwater wellfield permitting is required).
• Alternatively, an expansion of 6.0 MGD treatment capacity (required to meet the
projected M3DD through the year 2034) using a brackish groundwater treatment process
would not require any additional well construction or permitting.
• A hybrid expansion of 6.0 MGD treatment capacity using 4.0 MGD of fresh groundwater
treatment process (one lime softening reactor /clarifier) and 2.0 MGD of brackish
groundwater treatment process (one RO skid) could be accomplished without additional
well construction or permitting.
Regulatory Issues
SFWMD prepared and issued the Lower West Coast Water Supply Plan in April, 2012. This
document is a 20 -year plan for water supply for the Lower West Coast of Florida, comprised of Collier
County, Lee County, Glades County, Hendry County and portions of Charlotte and Monroe Counties.
The Plan Conclusion was stated as:
'The future water demands of the region can continue to be met through the 2030
planning horizon with appropriate management and continued diversification of water
supply resources.'
The Lower West Coast Water Supply Plan recommends the diversification of supply sources,
comprising increased use of reclaimed water, increased use of supplemental water sources and the
increased use of Aquifer Storage and Recovery ('ASR') for storage. All future raw water sources are
being investigated in accordance with SFWMD recommendations.
Water Treatment Facilities
The United States Environmental Protection Agency, the Florida Department of Environmental
Protection ('FDEP'), and the Collier County Department of Health regulate the quality of the District's
water. The District is currently in compliance with all applicable regulations relating to water quality,
providing potable water that meets the Federal Safe Drinking Water Act and all State of Florida primary
and secondary standards. Primary standards set limitations for specific contaminants in drinking water.
Secondary standards establish levels for contaminants that may have adverse cosmetic or aesthetic effects
25694/006/01094478.DOCv3
27
on drinking water. Currently, the primary regulatory impetus affects those districts or authorities that
utilize surface water sources rather than groundwater sources as the District does.
North County Regional Water Treatment Plant
The NCRWTP is located on the north side of Vanderbilt Beach Road Extension east of CR 951 in
the northeast quadrant of the service area. The plant uses groundwater withdrawn from the Lower
Tamiami, Lower Hawthorn and Hawthorn Zone I Aquifers. Membrane softening and RO treatment
processes are used to produce drinking water from these aquifers, respectively. Membrane filtration and
RO are physical treatment processes that use semi - permeable membranes for the removal of
contaminants from water. The membrane filtration process uses nanofiltration across permeable
membranes with approximately 85- percent recovery efficiency (recovery efficiency is the percentage of
raw feed water converted to product water). The RO process is designed for chloride removal and
provides a recovery efficiency of about 75 percent. The 12 -MGD membrane softening process and 8-
MGD RO process draw water from separate aquifers and operate independently. The operation of the
membrane softening and RO skids is operator - initiated. The membrane softening process uses water
from the Lower Tamiami Aquifer, and the RO process uses water from the Lower Hawthorn and
Hawthorn Zone I Aquifers. Both membrane processes use similar pretreatment, including chemical
addition and cartridge filtration. However, separate sets of cartridge filters and acid /scale inhibitor
metering pumps are dedicated to each process. Product water produced by the two membrane processes
is blended in a common header for post- treatment and distribution. Chloramines are used for
disinfection, and the facility has a chlorine scrubber for safety. Additional chemical additives during
post - treatment include polyphosphate for corrosion control, fluoride for public health, and sodium
hydroxide for pH adjustment. The concentrate produced by the two membrane processes (reject water)
also is blended and subsequently disposed into one of the two on -site injection wells.
The membrane softening and RO processes share a common clean-in -place system that is used to
clean the membrane elements with a chemical solution. Chemical cleaning partially recovers the decline
in permeate production that occurs due to scaling and fouling of the membrane elements.
Four generators provide emergency power to allow for continued operation of the facility in the
event of a temporary or prolonged power outage.
South County Regional Water Treatment Plant
The SCRWTP is located near the intersection of CR 951 and I -75 about 5.5 miles south of the
NCRWTP. The SCRWTP includes a 12 -MGD lime softening facility that receives raw water from the
Lower Tamiami Aquifer and a 20 -MGD RO process that receives raw water from the Lower Hawthorn
and Hawthorn Zone I Aquifers.
For the lime softening process, the raw water is initially pumped through updraft degasification
units to remove hydrogen sulfide. Downstream of the degasification units, a splitter box serves as a feed
point for potassium permanganate prior to diverting the flow into three reactor /clarifiers for lime
softening. The softened water flows from the reactors to the re- carbonation basin where carbon dioxide is
added for pH adjustment. From the re- carbonation basin, the flow continues to the gravity sand filters.
Upstream of the filters, ammonia and chlorine are added. The filtered water then flows to the clearwell,
which is equipped with five transfer pumps to feed the ground storage tanks.
25694/006/01094478.DOCv3
28
Upstream of the RO process, the raw water is chemically pretreated to adjust pH and inhibit scale
and is routed through cartridge filters. The pretreated water is then directed to the RO process to remove
calcium, chlorides and inorganic carbon. The product water leaving the RO facility goes through
degasification to remove sulfides and any remaining carbon. The degasified permeate flows to the new
blend tank, sized to serve both the RO and lime- softened water. A blend tank provides a point at which
the product waters from the two different water treatment processes can be combined to create one
consistent and stable finished water for storage and distribution. Once lime- softened water and RO
permeate come together in the blend tank, sodium hydroxide, chlorine (to disinfect), anhydrous ammonia
(to form a chlorine residual), and a blend of ortho - polyphosphate (to inhibit corrosion) and sodium
silicofluoride (public health) are added for final treatment. All chemicals associated with pretreatment,
treatment, post - treatment, and cleaning of the membranes are stored, used, and disposed of, if necessary,
in accordance with Federal and State regulations. The recovery efficiencies of the SCRWTP lime softening
and RO treatment processes are approximately 97% and 75% respectively. The transfer pumps direct the
flow to two 6 -MG finished water storage tanks.
The transfer pumps direct the flow to one 2 -MG and two 6 -MG finished water storage tanks.
Two lime softening facility generators and two RO facility generators at the SCRWTP provide sufficient
emergency power to allow for continued operation of the facility in the event of a temporary or
prolonged power outage. The main switchgear feeds the high service pumps, and three motor control
centers. The motor control centers feed various equipment throughout the plant including; transfer
pumps, chemical systems, backwash and surface wash pumps, and miscellaneous building loads.
The existing facilities treat source water and essentially provide all potable water supplies for the
District's service area. Maximum month daily demand in 2015 was 28.0 MGD, which is 54% of the
permitted maximum month daily capacity. The actual finished water demand for fiscal years ending
September 30, 2010 through 2015 as a percent of the permitted design capacity is shown in the following
table.
Water Production and Capacity Utilization
MMDD = Maximum Month Daily Demand
MGD = Million Gallons Per Day
Source: Collier County Water -Sewer District
25694/006/01094478.DOCv3
29
Maximum Month
Permitted Capacity
Daily Demand
Percent Of Current
MMDD
MMDD
Permitted Capacity
Year
(MGD)
(MGD)
Utilized
2010
52.0
23.1
44%
2011
52.0
26.2
50
2012
52.0
26.1
50
2013
52.0
26.8
52
2014
52.0
27.4
53
2015
52.0
28.0
54
MMDD = Maximum Month Daily Demand
MGD = Million Gallons Per Day
Source: Collier County Water -Sewer District
25694/006/01094478.DOCv3
29
Water Transmission, Storage, and Distribution
Water Transmission
Pressure is maintained in the transmission system by using high service pumps located at both
water treatment plants, three water booster pumping stations and an in -line booster pump station located
strategically in the Water System. The booster pumping stations are located at Isles of Capri, Manatee
Road and Carica Road. The in -line booster station is located in the northwest portion of the system near
Vanderbilt Drive. The Isles of Capri Pumping Station is a local distribution station in the far south
portion of the service area, providing high service pumping to the local area. The Manatee Road facilities
serve the south portion of the service area. The Carica Road facilities serve the north portion of the
service area. The Vanderbilt Booster Pumping Station was originally installed as a booster station for fire
flow demand. As the water customers and demand have increased, this station operates on a regular
basis to provide adequate water pressure in the northwest portion of the Water System.
The high service pumps at the treatment plants are operated to maintain a discharge pressure 90
psi. The other pumping stations are utilized to maintain pressures in the extremities of the Water System
during high demand periods.
Water Storage
Ground storage tanks at the treatment plants and at the booster pumping station sites provide
system storage and reserve capacity to help meet peak hourly demands of the Water System. The
booster pumping station storage tanks are located at Isles of Capri, Manatee Road and Carica Road. The
Isles of Capri Pumping Station is a local distribution station in the far south portion of the service area,
providing 0.25 million gallons of storage. The Manatee Road facilities serve the south portion of the
service area and include a two- million - gallon storage tank. The Carica Road facilities include two five
million gallon storage tanks.
Finished Water Storage Facilities
MG = Million Gallons
Source: AECOM
Water Distribution
The District owns and maintains over 960 miles of water transmission and distribution pipelines,
ranging in size up to 42 inches in diameter, with over 62,000 service connections. The pressure in the
25694/006/01094478.DOCv3
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Capacity of Storage Facility — MG
Name /Location
Type of
Tank
Usable Storage
of Storage Facility
Storage Facility
Volume
Capacijy
NCRWTP
Ground Storage Tank
12.00
11.10
SCRWTP
Ground Storage Tank
14.00
12.40
Isles of Capri
Distribution Pump Station
0.25
0.20
Manatee Road Pumping Station
Distribution Pump Station
2.00
1.80
Carica Road Pumping Station
Distribution Pump Station
10.00
9.30
Total or Combined Storage Capacity of All Storage Facilities
38.25
34.80
MG = Million Gallons
Source: AECOM
Water Distribution
The District owns and maintains over 960 miles of water transmission and distribution pipelines,
ranging in size up to 42 inches in diameter, with over 62,000 service connections. The pressure in the
25694/006/01094478.DOCv3
30
water distribution system is generally maintained at 55 psi, which meets the fire flow requirements of the
District. The water distribution system is generally not considered as a looped network and there are
numerous instances of some dead -end lines, which require periodic flushing to assure water quality. The
water distribution facilities are equipped with isolation valves throughout the Water System for repairs
and maintenance without shutting down significant portions of the Water System at one time. The water
distribution system also includes an adequate number of fire hydrants to provide fire protection
throughout the service area of the Water System.
Water System Residuals Disposal
The District generates two types of residuals disposal: (i) lime sludge disposal from the SCRWTP;
and (ii) liquid concentrate disposal from the membrane softening ('MS') and RO processes at the
SCRWTP and NCRWTP.
Lime solids are created from the calcium carbonate precipitation process. Excess sludge from the
reactor /clarifiers is pumped to a gravity thickener, when the solids are settled. The thickened sludge is
pumped to a dewatering process that uses belt filter presses, which are located in a dewatering building.
The dewatered sludge is hauled by truck to a land application facility using a contract hauler. The
hauling contract typically has a short term of two years and is bid at the end of this term.
Utilization of RO to treat brackish sources generates a concentrate that requires disposal.
Concentrate disposal is regulated by the FDEP. In southwest Florida, the FDEP - preferred alternative for
disposing of the by- products of the RO treatment process is injection well technology, in which the
concentrate is injected through a well into the 'Boulder Zone' of the Lower Floridan Aquifer.
The Boulder Zone in the County occurs at depths ranging from approximately 2,000 feet to 3,400
feet below land surface. It is overlain by 500 to 1,000 feet of low - permeability limestone and dolomite,
which retard the upward movement of injected fluids. The permeability of the Boulder Zone is very
high. This combined with the fact that the Boulder Zone contains salt water makes it an ideal zone for
receiving injected wastes. There are currently four Class I injection wells in the County that are used for
the disposal of treated municipal Sewer and concentrate from RO desalination facilities.
Regulating agencies such as the FDEP support the use of injection wells to dispose of the by-
products of membrane treatment. Under current regulations, Class I injection wells must be permitted
through the Underground Injection Control ('UIC') program of the FDEP. The UIC permitting process
requires that the injection wells be constructed so that they have mechanical integrity and that adequate
confinement is present so that injected fluids do not migrate and impact underground sources of drinking
water. Injection wells must undergo mechanical integrity testing every five years. Well performance and
monitoring data are also reviewed every five years as part of the operational permit renewal.
Concentrate disposal at the two existing water treatment plants is by deep well injection. The
NCRWTP has two on -site 16 -inch diameter injection wells, each with a design capacity greater than the
design concentrate flow of 4.4 MGD. This provides the 100 percent enhanced reliability requirement in
the FDEP rules. At the NCRWTP, each well has a constructed capacity of 7.9 MGD. The SCRWTP
includes two 20 -inch diameter deep injection wells, for the concentrate flow of 6.7 MGD. The permitted
capacity for each well is 12.7 MGD.
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Condition of Water System
The existing water treatment facilities utilize treatment technologies that are appropriate for the
raw water sources and acceptable industry -wide. No negative performance issues associated with these
technologies have been noted. The District has been diligent in maintaining the Water System and
planning for future upgrades. As such, growth has dictated that a significant portion of the Water
System has been constructed in the last twenty years. The water supply and treatment facilities appear to
be in good operating condition and are maintained in accordance with prudent utility management
practices.
Projected Potable Water Demand (Capacity Planning Requirements)
Collier County Growth Management Department Comprehensive Planning Division (the
'Comprehensive Planning Division') develops population projections utilizing the following information:
historical population growth, Florida Bureau of Economic and Business Research ('BEBR') population
forecasts, and water service information provided by the County Water Division. In addition to
population growth, other criteria are utilized to determine future capacity of the water treatment and
distribution facilities. The Level of Service Standard ('LOSS') factors are used to forecast future water
demands, determine capacities of future facilities, and for hydraulic modeling. Revised LOSS factors for
the Water System were adopted by the Board in 2015. The LOSS factors include operational standards
and a per capita water demand standard (150 gpcd).
The LOSS for water transmission systems requires a minimum system pressure of 50 pounds -per-
square -inch (psi) during the peak hour water demand period and a minimum Water System pressure of
40 psi during maximum daily demand with fire flow.
The following table outlines the per capita demand, total annual demand, MMDD, AADD, MDD,
and M3DD from 2010 through 2034 projected for capacity planning purposes based on the County's
Water System Comprehensive Planning Division populations.
[Remainder of page intentionally left blank]
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Projected Finished Water Demand — Capacity Planning Purposes(l)
Maximum
Monthly Daily
Maximum Daily
Maximum 3
Annual
Demand
Per Capita
Total Annual
Average Daily
M3DD
Demand
Demand
Demand
Calendar
Loss
AD
AADD
Year
(gpcd)
(MG)
MGD
2010
170
8,340
22.9
2015
150
9,800
26.9
2020
150
11,373
31.2
2025
150
12,826
25.1
2030
150
14,089
38.6
2034
150
14,994
41.1
Maximum
Monthly Daily
Maximum Daily
Maximum 3
Demand
Demand
Day Demand
MMDD
MDD
M3DD
(MGD)
(MGD)
(MGD)
27.4
30.9
29.7
32.2
36.2
34.9
37.4
42.1
40.5
42.2
47.4
45.7
46.3
52.1
50.2
49.3
55.5
53.4
gpcd = gallons per capita per day
MG = Million Gallons
MGD = Million Gallons Per Day
�l> These projections are for finished water following treatment. Processes such as membrane
softening and reverse osmosis require additional water due to losses during treatment. The
amount of additional raw water required depends on the capacity and efficiency of the
treatment system. Note that projected values for 2010 and 2015 are greater than actual
production values because projections utilize a standard per capita demand LOSS which
historically has been greater that actual.
Source: Collier County Water -Sewer District
The projected water demands are forecasted to increase over time, but at a slightly declining rate,
due to continued growth in the County. The leveling -off effect of projected demand that occurs after 2025
is based on the fact that, as the service area reaches build -out, the permanent portion of the functional
population will remain constant and additional growth will only come from the seasonal component of
the functional population, which also includes the daily visitors.
Water System Capacity
The District recently completed the 2014 Water Master Plan /CIP Plan integrated with the 2014
Rate Study in order to develop a comprehensive plan to accommodate growth. Increasing the Water
System capacity requires that the District, construct additional treatment facilities to accommodate
growth, and provide additional infrastructure to deliver finished water to the customers. The combined
ultimate operational capacity of the existing facilities is 48.0 MGD. Two future treatment facilities that
are proposed to augment the treatment capacity provided by the NCRWTP and SCRWTP are the
Northeast Regional Water Treatment Plant (' NERWTP') and the Southeast Regional Water Treatment
Plant (' SERWTP') may be required if the District expands beyond its existing service area. The following
table summarizes water treatment plant constructed and operational capacity:
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Water Treatment Plant Capacity Summary
Ground
Water Recovery
WTP Treatment Process Resource Constructed Capacity Efficiency
Fresh Ground
NCRWTP Nanofiltration (NF) Water 6 X 2 MGD =12 MGD 85%
Low Pressure Reverse Osmosis Brackish Ground
(LPRO) Water 4 X 2 MGD = 8 MGD 75%
Fresh Ground
SCRWTP Lime Softening (LS) Water 3 X 4 MGD =12 MGD 97%
Low Pressure Reverse Osmosis Brackish Ground
(LPRO) Water 10 X 2 MGD = 20 MGD 75%
Total Constructed Capacity 52 MGD NA
Operational Capacity(') 48 MGD NA
(l) In order to account for the operational need to maintain plant equipment, the constructed
capacity (52 MGD) is reduced by the largest treatment process unit (4 MGD lime softening
reactor /clarifier). The resulting operational capacity (48 MGD) is used to determine when
expansion is required. This is based on the CCWSD's Public Utilities Division Reliability
Guidelines, February 2006, consistent with the "2012 Recommended Standards for Water Works."
MMDD = Maximum Month Daily Demand
MGD = Million Gallons Per Day
Source: AECOM
Future Water Treatment Expansion
Approximately 5.4 MGD of additional treatment capacity is required to meet the projected
potable water system demands starting in 2028 and extending through build out (2034). There are viable
options to provide the additional treatment at either the NCRWTP, SCRWTP, or at the proposed
NERWTP. Future master planning activities will indicate the optimum location based on future
development.
In the event that the service area is expanded and there is sufficient demand beyond the 5.4 MGD
projected above, sites have been identified for the NERWTP and SERWTP. The NERWTP would be
constructed on a 216 -acre county owned site located in the Northeast area of the County in multiple
phases as driven by demand. Current planning is to construct the SERWTP in two phases at the 42.5 -acre
Manatee Road Pumping Station site.
The expanded facilities will treat source water to provide all potable water supplies for the
District's service area. The following table outlines the per capita demand, total annual demand, MMDD,
AADD, MDD, and M3DD from 2010 through 2034 projected for capacity planning purposes. Note that
projected values for 2010 and 2015 are greater than actual production values because projections utilize a
standard per capita demand LOSS which historically has been greater that actual.
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Future Water Production and Capacity Utilization
MMDD = Maximum Month Daily Demand
MGD = Million Gallons Per Day
Source: AECOM
Sewer System
General
The sewer treatment facilities in the Sewer System include two water reclamation facilities, over
693 miles of gravity sewer lines, over 805 pumping stations (of which 22 are master pumping stations),
and more than 393 miles of force main.
Wastewater Flows
When considering sewer flows as they relate to planning and permitting for sewer facilities, the
following flow conditions are typically analyzed:
• Annual Average Daily Flow ('AADF'): Total wastewater flow generated in one year
divided by the number of days in that year.
• Maximum Month Daily Flow ('MMDF'): Maximum quantity of wastewater generated
during a single month during a one -year period, divided by the number of days in the
month. The District utilizes the MMDF for sizing sewer treatment facilities. For
estimating projected demands, the MMDF is 1.3 times the AADF.
• Maximum 3 Day Flow ('M3DF'): Maximum average of the quantity of wastewater
generated in three consecutive days. For estimating projected flows, the M3DF is 1.5
times the AADF.
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Maximum Month
Permitted Capacity
Daily Demand
Percent of Current
MMDD
MMDD
Permitted Capacity
Year
MGD )
(MGD)
Utilized
2010
52.0
27.4
53%
2015
52.0
32.2
62
2020
52.0
37.4
72
2025
52.0
42.2
81
2030
58.0
46.3
80
2034
58.0
49.3
85
MMDD = Maximum Month Daily Demand
MGD = Million Gallons Per Day
Source: AECOM
Sewer System
General
The sewer treatment facilities in the Sewer System include two water reclamation facilities, over
693 miles of gravity sewer lines, over 805 pumping stations (of which 22 are master pumping stations),
and more than 393 miles of force main.
Wastewater Flows
When considering sewer flows as they relate to planning and permitting for sewer facilities, the
following flow conditions are typically analyzed:
• Annual Average Daily Flow ('AADF'): Total wastewater flow generated in one year
divided by the number of days in that year.
• Maximum Month Daily Flow ('MMDF'): Maximum quantity of wastewater generated
during a single month during a one -year period, divided by the number of days in the
month. The District utilizes the MMDF for sizing sewer treatment facilities. For
estimating projected demands, the MMDF is 1.3 times the AADF.
• Maximum 3 Day Flow ('M3DF'): Maximum average of the quantity of wastewater
generated in three consecutive days. For estimating projected flows, the M3DF is 1.5
times the AADF.
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Historical wastewater flow data is summarized in the following table:
Historical Wastewater Collection(')
As can be seen in the previous table, the trend in wastewater flows during the period from 2010
through 2015 shows a moderate increase expressed on an average daily flow basis. Wastewater flow
increases are expected to continue at a comparable rate in the short term, but are expected to have a
leveling -off effect in later years. From 2010 to 2015, the AADF increased by 22% from 14.3 MGD to 17.4
MGD. The maximum daily flows for the District's service area show a similar increase.
Wastewater Treatment and Effluent Disposal Facilities
General
The United States Environmental Protection Agency, the FDEP, and regulate the wastewater
treatment and effluent disposal. Regulations for effluent quality vary depending on the nature of effluent
management. The District does not dispose of any wastewater effluent by discharge into surface waters.
The District's primary means of wastewater effluent management is by irrigation (reuse), which has more
stringent treatment requirements than disposal by other means, since customers will directly utilize the
end product. Regulations have been established so that permitted wastewater treatment facilities meet
effluent limitations for carbonaceous biological oxygen demand ('CBOD'), total suspended solids,
nitrates, total phosphorus, fecal coliform, turbidity, and pH. The District is currently in compliance with
all applicable regulations relating to wastewater effluent quality for disposal /reuse.
North County Water Reclamation Facility
Sewer treatment in the North Service Area is provided at the North County Water Reclamation
Facility (' NCWRF'), located on the east side of Goodlette -Frank Road just south of Immokalee Road. The
NCWRF operates under FDEP Permit No. FLO141399 which expires September 8, 2018, and is designed,
25694/006/01094478.DOCv3
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Total
Annual
Maximum
Annual
Average
Month
Maximum 3
Per Capita
Flow
Daily Flow
Daily Flow
Day Flow
Flow
AF
AADF
MMDF
M3DF
Calendar Year (gpcd)
(MG)
(MGD)
(MGD)
(M3DD)
2010 100/120
5,216
14.3
15.9
18.0
2011 100/120
5,402
14.8
16.8
18.7
2012 100/120
5,767
15.8
18.2
25.3
2013 100/120
6,095
16.9
18.9
24.2
2014 100
6,059
16.6
19.5
21.7
2015 100
6,351
17.4
19.5
20.8
Percent Change
N/A
22%
22%
23%
16%
2010 -2015
MG = Million Gallons
MGD = Million Gallons Per Day
(1) Includes residential and commercial
(general service) flows.
Source: Collier County Water -Sewer District
As can be seen in the previous table, the trend in wastewater flows during the period from 2010
through 2015 shows a moderate increase expressed on an average daily flow basis. Wastewater flow
increases are expected to continue at a comparable rate in the short term, but are expected to have a
leveling -off effect in later years. From 2010 to 2015, the AADF increased by 22% from 14.3 MGD to 17.4
MGD. The maximum daily flows for the District's service area show a similar increase.
Wastewater Treatment and Effluent Disposal Facilities
General
The United States Environmental Protection Agency, the FDEP, and regulate the wastewater
treatment and effluent disposal. Regulations for effluent quality vary depending on the nature of effluent
management. The District does not dispose of any wastewater effluent by discharge into surface waters.
The District's primary means of wastewater effluent management is by irrigation (reuse), which has more
stringent treatment requirements than disposal by other means, since customers will directly utilize the
end product. Regulations have been established so that permitted wastewater treatment facilities meet
effluent limitations for carbonaceous biological oxygen demand ('CBOD'), total suspended solids,
nitrates, total phosphorus, fecal coliform, turbidity, and pH. The District is currently in compliance with
all applicable regulations relating to wastewater effluent quality for disposal /reuse.
North County Water Reclamation Facility
Sewer treatment in the North Service Area is provided at the North County Water Reclamation
Facility (' NCWRF'), located on the east side of Goodlette -Frank Road just south of Immokalee Road. The
NCWRF operates under FDEP Permit No. FLO141399 which expires September 8, 2018, and is designed,
25694/006/01094478.DOCv3
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permitted and operated to stay in compliance and to meet all wastewater treatment standards and
effluent disposal requirements. No problems are anticipated by the District in renewing this permit. The
plant provides advanced secondary treatment producing effluent consistent with requirements for
irrigation quality water. Irrigation by irrigation quality water is the primary means of effluent disposal.
The NCWRF is a 24.1 MGD facility with two parallel treatment trains. In the first train, which is
an 11.1 MGD MMDF oxidation ditch (extended aeration) facility, influent wastewater flows through the
headworks where two mechanical bar screens and one manual bar screen provide preliminary treatment.
The wastewater then flows into three aerated grit basins. From the aerated grit basins, wastewater flows
into three oxidation ditches. Diffusers provide transfer of oxygen to the mixed liquor in each ditch.
Activated sludge is returned to the head of the oxidation ditches by horizontal centrifugal pumps. The
oxidation ditch effluent proceeds to five secondary clarifiers for final sedimentation. Effluent from the
secondary clarifiers flows to eight traveling bridge automatic backwash filters for solids removal.
Filtered effluent is routed to two chlorine contact chambers. Sodium hypochlorite is injected at the head
of the chlorine contact chambers. Following the chlorine contact chambers, the treated and filtered
effluent flows to the reuse pumping station, where it can be directed to appropriate disposal.
The second parallel treatment train is a 13.0 MGD MMDF facility, which uses the Modified
Ludzack- Ettinger ('MLE') process. In the MLE Facility, the influent wastewater flows through
mechanical bar screens, aeration grit chambers, and then into aeration basins. The aeration basin effluent
proceeds to secondary clarifiers for final sedimentation. A portion of the aeration basin effluent (mixed
liquor) is recycled to the aeration basin as part of the MLE process to promote denitrification. Effluent
from the secondary clarifiers flows to traveling bridge automatic backwash filters for solids removal.
Filtered effluent is routed to chlorine contact chambers. Sodium hypochlorite is injected at the head of
the chlorine contact chambers. Following the chlorine contact chambers, the treated and filtered effluent
flows to the reuse pumping station, where it can be directed to appropriate disposal. The facility has
three 1.5 -MG flow equalization tanks to increase plant reliability for handling higher peak hourly flows.
The planned build out capacity of the NCWRF is 30.6 MGD utilizing treatment technologies
present at the site.
In December 2014, the FDEP awarded the NCWRF the 2014 Plant Operations Excellence Award
in recognition of 'outstanding operation through dedicated professionalism.'
South County Water Reclamation Facility
Wastewater treatment in the south service area is provided at the South County Water
Reclamation Facility (' SCWRF'), located approximately one mile south of Rattlesnake Hammock Road
and nearly one mile east of US 41. The SCWRF operates under FDEP Permit No. FL0141356, which
expires October 23, 2017, and is designed, permitted and operated to stay in compliance and to meet all
wastewater treatment standards and effluent disposal requirements. No problems are anticipated in
renewing this permit. The plant provides advanced secondary treatment producing effluent consistent
with requirements for irrigation quality water. Irrigation by irrigation quality water is the primary means
of effluent disposal.
The present permitted capacity of the SCWRF is 16.0 MGD MMDF. The SCWRF is a domestic
wastewater facility that utilizes the MLE process. Pretreatment consists of a screening facility with
mechanical and manual screening, and grit - handling facilities and pumps. Effluent from the
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pretreatment processes is mixed with activated sludge and recycled mixed liquor prior to feeding the
aeration tanks. Secondary treatment is provided by aeration trains (with anoxic zones and fine bubble
diffused -air zones), multi-stage centrifugal blowers, return mixed liquor pumps, secondary clarifiers,
odor control units and return activated sludge pumps. The SCWRF also has traveling bridge filters with
automatic backwash and chlorine contact chambers where sodium hypochlorite is used to disinfect
treated water. Residuals are sent to an aerated sludge holding tank and are dewatered by belt filter
presses. The SCWRF has two equalization tanks. The SCWRF is currently at its buildout capacity
utilizing treatment technologies present at the site.
Effluent Disposal
The primary means of effluent disposal at both the NCWRF and SCWRF is distribution to
irrigation quality water customers for irrigation use. Excess water or water unsuitable for public access
irrigation is pumped into deep injection wells ('DIWs') as the District's secondary means of effluent
disposal. In the past, the District's two water reclamation facilities each served its own dedicated
irrigation quality water system and customers. In 2002, an interconnection between the two systems was
created allowing limited irrigation quality water and supplemental water to be exchanged between the
two service areas. Irrigation quality water is produced at the water reclamation facilities ('WRFs') as the
source of water supply for the benefit of the System. The irrigation quality water can be temporarily
stored at the WRFs in ponds on site or distributed for use or storage at customer sites. The District's goals
for the irrigation quality water system are to meet the allocations established under each customer
irrigation quality water agreement and to maximize the reuse of irrigation quality water, minimizing
disposal using DIWs.
The irrigation quality water system serving customers in the District has evolved from being
considered strictly effluent disposal to being an irrigation quality water service provider (water resource).
However, the primary function of the irrigation quality water system is for effluent disposal, as required
by the operating permits of the WRFs. Although some District customers have a backup supply of
irrigation water from wells, other customers depend on the District's irrigation quality water system as
their sole source of irrigation water. Customers largely consist of bulk commercial customers and
residential communities. The District is compensated by its customers based on rates established by the
District and approved by the Board.
The permit at the NCWRF limits the effluent disposal from the plant to two options, irrigation
and deep well injection at the plant site. The NCWRF has two deep injection wells, each with a capacity
of 17 MGD MMDF (34.0 MGD peak hourly flow). There are also on -site irrigation quality water storage
ponds with a combined volume of 25 MG.
The permit at the SCWRF limits the effluent disposal from the plant to three options, irrigation,
wetlands mitigation, and deep well injection at the plant site. The SCWRF has two deep injection wells
on site, each with a capacity of 9.25 MGD MMDF (18.0 MGD peak hourly flow). There is also an on -site
irrigation quality water storage tank with a volume of 6.6 MG. The plant also has an on -site irrigation
quality water storage pond with a volume of 4.4 MG. The District owns several ponds away from the
plant site with a total volume of 101.4 MG.
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Irrigation Quality Water Aquifer Storage and Recovery
The purpose of the irrigation quality water ASR wells is to store excess irrigation quality or reuse
water in the wet season for use during the dry season to help protect and preserve the fresh and potable
water supply. The irrigation quality water is stored in a deep brackish water aquifer system that is
isolated from the freshwater aquifers that lie several hundred feet above. There are hundreds of feet of
confining clays and other strata separating the brackish aquifer from the fresh water aquifer. In addition,
all stored water is pretreated to meet primary drinking standards and will be monitored by a
comprehensive system.
The District constructed one irrigation quality ASR well in 2014 and a second ASR well in 2015.
A total of five irrigation quality water ASR wells are planned by the District to be constructed for
irrigation quality water storage. Each ASR well is planned to receive or deliver up to 1.0 MGD of
irrigation quality water. This project will enhance the District's ability to store irrigation quality water
rather than dispose of this water by deep well injection during periods of high wastewater flows and low
irrigation demands (which occurs during the wet season).
ASR Proeram
Fiscal Year of Fully Functional
(1) Provided that cycle testing yields favorable results.
Source: Collier County Water -Sewer District
Residuals Disposal
Biosolids are dewatered using the belt filter presses at both the NCWRF and the SCWRF. The
NCWRF sludge dewatering building size is adequate for the ultimate plant capacity of 30.6 MGD MMDF;
however, a sixth belt filter press will be required. Biosolids facilities at the SCWRF include two 330,000 -
gallon waste activated sludge holding tanks. The District transports biosolids out of County to a landfill
for composting. There are currently no environmental issues regarding composting disposal. The
District issued a Request For Proposal on February 26, 2016 to examine options for public private
partnership for biosolids digestion providing direct benefit to the District through the production of
compressed natural gas for vehicle fueling.
Sewer Collection and Transmission Facilities
The Sewer System contains more than 693 miles of gravity sewer lines and 393 miles of force
main, and 805 pumping stations serving the Sewer collection system. The pumping stations are
predominately small pump stations with a minimum of 2 submersible pumps at each station. There are
also 22 master pumping stations strategically located to transmit sewage to the water reclamation
facilities. All of the master pumping stations are equipped with permanent auxiliary power generators
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Irrigation Quality
Construction
Storage Capacity
Location
Water Capacity
Completion
Available
Livingston RoadM
1 MGD (Initial Well)
2014
2019
Livingston RoadO)
1 MGD (Second Well)
2015
2019
Livingston Road(')
3 MGD (Three 1 -MGD Wells)
2022
2026
Total ASR Capacity
5 MGD
(1) Provided that cycle testing yields favorable results.
Source: Collier County Water -Sewer District
Residuals Disposal
Biosolids are dewatered using the belt filter presses at both the NCWRF and the SCWRF. The
NCWRF sludge dewatering building size is adequate for the ultimate plant capacity of 30.6 MGD MMDF;
however, a sixth belt filter press will be required. Biosolids facilities at the SCWRF include two 330,000 -
gallon waste activated sludge holding tanks. The District transports biosolids out of County to a landfill
for composting. There are currently no environmental issues regarding composting disposal. The
District issued a Request For Proposal on February 26, 2016 to examine options for public private
partnership for biosolids digestion providing direct benefit to the District through the production of
compressed natural gas for vehicle fueling.
Sewer Collection and Transmission Facilities
The Sewer System contains more than 693 miles of gravity sewer lines and 393 miles of force
main, and 805 pumping stations serving the Sewer collection system. The pumping stations are
predominately small pump stations with a minimum of 2 submersible pumps at each station. There are
also 22 master pumping stations strategically located to transmit sewage to the water reclamation
facilities. All of the master pumping stations are equipped with permanent auxiliary power generators
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for use during power outages. There is a hydraulic interconnection that allows limited flow transfer
between the service area of the NCWRF and SCWRF.
Condition of Sewer System
The existing wastewater treatment facilities utilize treatment technologies that are appropriate for
secondary treatment of municipal wastewater and acceptable industry -wide. No negative performance
issues associated with these technologies have been noted. The District has been diligent in maintaining
the Sewer System and planning for future upgrades. As such, growth has dictated that a significant
portion of the Sewer System has been constructed in the last twenty years. The wastewater collection and
treatment facilities of the Sewer System appear to be in good operating condition and are maintained in
accordance with prudent utility management practices.
Projected Flow (Capacity Planning Requirements)
Collier County Growth Management Department Comprehensive Planning Division (the
'Comprehensive Planning Division') develops population projections utilizing the following information:
historical population growth, Florida Bureau of Economic and Business Research ('BEBR') population
forecasts, and water service information provided by the County Wastewater Division.
In addition to population growth, other criteria are utilized to determine future capacity of the
water treatment and distribution facilities. The Level of Service Standard ('LOSS') factors are used to
forecast future water demands, determine capacities of future facilities, and for hydraulic modeling.
Revised LOSS factors for the Wastewater System were adopted by the Board in 2015. The LOSS factors
include operational standards and a per capita wastewater flow standard of 100 gpcd. Note that
projected values for 2010 and 2015 are greater than actual collection values because projections utilize a
standard per capita demand LOSS which historically has been greater that actual.
Projected Wastewater Flow — Capacity Planning Purposes
gpcd = gallons per capita per day
MG = Million Gallons
MGD = Million Gallons Per Day
Source: Collier County Water -Sewer District
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Total
Annual
Maximum
Per Capita
Annual
Average
Monthly
Maximum 3
Flow
Flow
Daily Flow
Daily Flow
Day Flow
Calendar
Loss
AF
AADF
MMDF
M3DF
Year
(pcd)
(MG)
(MGD)
(MGD)
(MGD)
2010
100/120
6,355
17.4
20.9
26.1
2015
100
7,337
20.1
24.1
30.2
2020
100
8,304
22.8
27.4
34.2
2025
100
9,118
25.0
30.0
37.5
2030
100
9,826
26.9
32.3
40.4
2034
100
10,333
28.3
34.0
42.5
gpcd = gallons per capita per day
MG = Million Gallons
MGD = Million Gallons Per Day
Source: Collier County Water -Sewer District
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Sewer System Capacity
The existing water reclamation facilities have a combined permitted treatment capacity of 40.1
MGD. Additional treatment capacity would be needed in order to accommodate anticipated future
service area growth. In addition to expanding the NCWRF by 6.5 MGD, the two proposed facilities to
further augment treatment are the Northeast Water Reclamation Facility (' NEWRF') and the Southeast
Water Reclamation Facility (' SEWRF'). A summary of the wastewater treatment capacities of the existing
wastewater treatment facilities is shown in the following table:
Sewer Treatment Capacities Summary
Water Reclamation Permitted Capacity
Facility (MGD)
NCWRF 24.1
SCWRF 16.0
Total 40.1
MGD = Million Gallons Per Day
Source: AECOM
Future Wastewater Treatment Expansion
Approximately 4.9 MGD of additional treatment capacity is required system -wide to meet the
projected wastewater system demands starting in 2030 through build out (2034). Even though significant
growth is planned in the south service area, because the SCWRF is currently at its buildout capacity,
additional treatment must be sited elsewhere. There are viable options to provide the additional
treatment at either the NCWRF through the 6.5 MGD expansion, or at the proposed NEWRF. Future
master planning activities will indicate the optimum location based on future development.
To accommodate growth in the south service area, 5.6 MGD of additional collections system
conveyance capacity is required to move flows from south to north starting in 2021 through 2034 (build
out). This conveyance capacity will enable the 6.5 MGD expansion to meet the needs of the entire service
area, north and south.
In the event that the service area is expanded and there is sufficient demand beyond the 4.9 MGD
projected above, sites have been identified for the NEWRF and SEWRF. The NEWRF would be
constructed on a 216 -acre District owned site located in the Northeast area of the County in multiple
phases as driven by demand. A site has not been selected for the SEWRF.
Rates, Fees and Charges
Gross Revenues for the District is derived from the application of the monthly user charges or
rates levied against all customers for utility services rendered. The rates for monthly water and
wastewater service accounted for approximately 95% of the reported System Gross Revenues for the
fiscal year ended September 30, 2014. Gross Revenues includes interest earnings on unrestricted fund
balances and realized gains from the sale of investments considered to be a component of Gross
Revenues. Interest earnings on funds where earnings are considered to be restricted (e.g., System
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Development Fees or Construction Fund balances) are not considered as a component of the Gross
Revenues of the System.
A comprehensive review of the District's user charges was completed in May, 2014. This study,
approved by the Board in September 2014 increased rates 9 percent, 5 percent and 5 percent for fiscal year
2015, 2016 and 2017 respectively (see chart below). Ordinance No. 2001 -73 enacted by the Board on
December 11, 2001, as amended by Ordinance No. 2013 -44 enacted by the Board on June 13, 2013
(collectively, the 'Rate Ordinance'), established a schedule of monthly user rates and miscellaneous
charges. The adopted rates as referenced in the Rate Ordinance include: (i) a flat or constant service base
or readiness -to -serve charge which varies by meter size for all classes of customers; (ii) for the customers
of the Water System, a consumption charge consisting of inclining blocked rates to promote water
conservation; (iii) for individually metered residential customers of the Sewer System, a wastewater flow
billing threshold of 15,000 gallons per month per account; and (iv) for the remaining customer classes of
the Sewer System, a constant volumetric flow charge based on one hundred percent (100 %) of the
metered water consumption to such account.
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25694/006/01094478.DOCv3
42
The following is a summary of the existing and recently adopted water rates of the District, all as
contained in the Rate Ordinance.
Monthly Water Rates
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25694/006/01094478.DOCv3
43
Effective
Effective
Effective
October 1,
October 1,
October 1,
2014(1)
2015(1)
2016(1)
WATER SERVICE BASE CHARGES
(All customer types)
Meter Size
5/8'
$19.22
$20.18
$21.19
3/4'
19.22
20.18
21.19
1 '
42.42
44.54
46.77
1 -1/4'
53.72
56.41
59.23
1 -1/2'
80.88
84.92
89.17
2'
126.96
133.31
139.98
3'
234.70
246.44
258.76
4'
388.53
407.96
428.36
6'
773.10
811.76
852.35
8'
1,234.58
1,296.31
1,361.13
10'
2,234.43
2,346.15
2,463.46
12'
3,017.92
3,168.82
3,327.26
VOLUME CHARGE PER 1,000 GALLONS
(All customer types)
Block 1(2)
$2.64
$2.77
$2.91
Block 2(2)
3.97
4.17
4.38
Block 3(2)
5.28
5.54
5.82
Block 4(2)
6.59
6.92
7.27
Block 5(2)
7.90
8.30
8.72
Block 6(2)
10.54
11.07
11.62
(1) Reflects rates adopted by the Board on September 9, 2014.
(2) The water consumption blocks vary in service level (amount of gallons) by meter size. The
following is the water consumption block structure
as reflected
in the Rate Ordinance:
Source: Collier County Water -Sewer District
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25694/006/01094478.DOCv3
43
Consumption Block (Gallons)
Meter
Size
Block 1
Block 2
Block 3
Block 4
Block 5
Block 6
5/8'
5,000
10,000
20,000
30,000
50,000
Over 50,000
3/4'
5,000
10,000
20,000
30,000
50,000
Over 50,000
1 "
12,000
25,000
50,000
75,000
120,000
Over 120,000
1 -1/4"
20,000
40,000
80,000
120,000
200,000
Over 200,000
1 -1/2"
25,000
50,000
100,000
150,000
250,000
Over 250,000
2"
40,000
80,000
160,000
240,000
400,000
Over 400,000
3"
80,000
160,000
320,000
480,000
800,000
Over 800,000
4"
120,000
250,000
500,000
800,000
1,200,000
Over 1,200,000
6"
250,000
500,000
1,000,000
1,500,000
2,500,000
Over 2,500,000
8"
450,000
900,000
1,800,000
2,700,000
4,500,000
Over 4,500,000
10"
700,000
1,450,000
2,900,000
4,300,000
7,000,000
Over 7,000,000
12"
1,075,000
2,150,000
4,300,000
6,450,000
11,000,000
Over 11,000,000
Source: Collier County Water
-Sewer District
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25694/006/01094478.DOCv3
44
The following is a summary of the existing and recently adopted sewer rates of the District, all as
contained in the Rate Ordinance.
Monthlv Sewer Rates
The financial projections indicate a need for additional rate adjustments above those that have
already been adopted by the Board primarily to provide funding to meet the ongoing capital needs of the
System. The District is planning to conduct another rate study within the next year to validate the need
for these additional adjustments.
In addition to the water and sewer rates for monthly service, the District also provides reuse
irrigation water to a variety of users. Such users include single - family residential customers, commercial
and multifamily common areas, and golf courses. The County currently estimates that approximately
90% of the treated effluent from the District's wastewater treatment facilities is used to provide irrigation
service. A summary of the reuse irrigation rates, as reflected in Rate Ordinance, is shown as follows:
25694/006/01094478.DOCv3
45
Effective
Effective
Effective
October 1,
October 1,
October 1,
2014(1)
2015(1)
2016(1)
SEWER SERVICE BASE CHARGES
(All customer types)
Meter Size
5/8'
$29.36
$30.83
$32.37
3/4'
29.36
30.83
32.37
1 '
66.76
70.10
73.61
1 -1/4"
85.59
89.87
94.36
1-1/2'
129.18
135.64
142.42
2'
204.11
214.32
225.04
3'
378.88
397.82
417.71
4
628.28
659.69
692.67
6 '
1,252.07
1,314.67
1,380.40
8"
2,000.86
2,100.90
2,205.95
10,
3,587.29
3,766.65
3,954.98
12'
5,316.94
5,582.79
5,861.93
VOLUME CHARGE PER 1,000 GALLONS
(All customer types)
All Usage(2)
$4.13
$4.34
$4.56
(1) Reflects rates adopted by the Board on September 9, 2014.
(2) No Sewer user charge shall be imposed
on metered water usage for individually metered
residential services above fifteen thousand (15,000) gallons per month
Source: Collier County Water -Sewer District
The financial projections indicate a need for additional rate adjustments above those that have
already been adopted by the Board primarily to provide funding to meet the ongoing capital needs of the
System. The District is planning to conduct another rate study within the next year to validate the need
for these additional adjustments.
In addition to the water and sewer rates for monthly service, the District also provides reuse
irrigation water to a variety of users. Such users include single - family residential customers, commercial
and multifamily common areas, and golf courses. The County currently estimates that approximately
90% of the treated effluent from the District's wastewater treatment facilities is used to provide irrigation
service. A summary of the reuse irrigation rates, as reflected in Rate Ordinance, is shown as follows:
25694/006/01094478.DOCv3
45
Monthly Reuse Irrigation Rates
(1) Rates adopted by the Board on September 9, 2014.
Source: Collier County Water -Sewer District
The District plans to review these schedules from time -to -time.
Pursuant to the Rate Ordinance, the District has also adopted a revised schedule of fees and
charges which are applicable to miscellaneous or customer requested services which became effective on
October 1, 2010 for the System. These schedules of fees will be reviewed along with user rates during the
next user rate study. The fees generally are imposed to recover the cost of providing specific services
such as water and sewer taps and utility turn-on fees. The District does not require customer deposits
since the District has the ability to place a statutory lien on each customer's property and can discontinue
service to the extent of nonpayment. The District indicates that the level of uncollectibles for providing
service is immaterial.
25694/006/01094478.DOCv3
46
Effective
Effective
Effective
October 1, 20140)
October 1, 2015(1)
October 1, 20160)
REUSE IRRIGATION SERVICE
BASE CHARGES
(All customer types)
Meter Size
5/8' and 3/4'
$6.43
$6.75
$7.09
1 '
14.05
14.75
15.49
1-1/2'
29.40
30.87
32.41
2
58.69
61.62
64.70
3'
116.17
121.98
128.08
4 "
232.34
243.96
256.16
6 "
441.60
463.68
486.86
8'
801.55
841.63
883.71
10,
1,282.73
1,346.87
11414.21
12'
1,910.68
2,006.21
21106.52
VOLUME CHARGE PER 1,000
GALLONS
Pressurized and Distributed
$0.96
$1.01
$1.06
Pressurized
0.49
0.51
0.54
Bulk
0.38
0.40
0.42
(1) Rates adopted by the Board on September 9, 2014.
Source: Collier County Water -Sewer District
The District plans to review these schedules from time -to -time.
Pursuant to the Rate Ordinance, the District has also adopted a revised schedule of fees and
charges which are applicable to miscellaneous or customer requested services which became effective on
October 1, 2010 for the System. These schedules of fees will be reviewed along with user rates during the
next user rate study. The fees generally are imposed to recover the cost of providing specific services
such as water and sewer taps and utility turn-on fees. The District does not require customer deposits
since the District has the ability to place a statutory lien on each customer's property and can discontinue
service to the extent of nonpayment. The District indicates that the level of uncollectibles for providing
service is immaterial.
25694/006/01094478.DOCv3
46
Average Utility Bill Comparison
Collier County Water -Sewer District
Existing Rates Effective October 1, 2015
Adopted Rates Effective October 1, 2016
Other Florida Utilities
Bonita Springs Utilities, Inc.(2)
City of Bradenton(2)
Charlotte County(2)
DeSoto County
Englewood Water District
FGUA - Golden Gate (Collier County)(2)
FGUA - Lehigh Acres System (Lee County)(2)
City of Fort Myers(2)
Hillsborough County(')
Lee County(2)
Manatee County(2)
City of Marco Island(2)
City of Naples(2)
City of North Port(2)
Okeechobee Utility Authority(2)
Pinellas County(2)
City of Punta Gorda(2)
City of Sarasota
Sarasota County(2)
Other Florida Utilities' Ave rage
6,000 Gallons of Utility Service(')
Water
Sewer
Total
$38.20
$56.87
$95.07
40.12
59.73
99.85
$34.13
$50.68
$84.81
30.94
38.58
69.52
51.20
57.16
108.36
57.94
69.03
126.97
27.20
40.72
67.92
63.48
77.27
140.75
47.84
77.03
124.87
42.85
98.18
141.03
35.42
39.89
75.31
32.21
55.55
87.76
21.39
48.74
70.13
58.94
60.04
118.98
16.13
42.84
58.97
44.38
64.44
108.82
50.22
62.27
112.49
36.27
42.73
79.00
33.52
35.43
68.95
38.20
65.59
103.79
31.99
60.13
92.12
$39.70 $57.17 $96.87
(1) Other Florida utilities represent utilities located in the southwest portion of the State in general
proximity of the District.
(2) Utility is currently involved in a rate study, is planning to conduct a rate study, or plans to
implement a rate revision or price index /pass- through adjustment within the next twelve months.
Source: Public Resources Management Group, Inc.
System Development Fees
In addition to the monthly rates for water and sewer service, the District currently charges
System Development Fees, which are sometimes referred to as 'impact fees,' based upon an equitable
and proportionate share of the cost for: (i) water production and transmission facilities; and
(ii) wastewater transmission, treatment and effluent disposal capacity of the System. Although the
Resolution refers to these fees as 'System Development Fees,' the ordinance enacted by the Board
establishing such fees (and the District in practice) refers to them as 'Impact Fees.'
The purpose of the System Development Fees is for paying or reimbursing the equitable share of
the capital costs relating to the construction, expansion or equipping of excess or unused capacity of the
25694/006/01094478.DOCv3
47
System in order to serve new users. If an existing customer requests an increase in water or wastewater
capacity due to increased development, an additional System Development Fee will be collected prior to
the development consistent with the net increase in demand. The current System Development Fees
were adopted pursuant to the Rate ordinance, and became effective on February 17, 2015. The following
table summarizes the adopted water and Sewer System Development Fees per Equivalent Residential
Connection ('ERC'):
Existing System Development
Fee Per ER01)(2)
Water Fee per ERC $2,600.00
Sewer Fee per ERC 2,515.00
Total 5115.00
(1) Existing System Development Fees became effective on February 17, 2015, collected at issuance of
Certificate of occupancy.
(2) ERC = Equivalent Residential Connection whereby an ERC for the Water System equates to 350
gallons per day of average water use and 250 gallons per day of average Sewer flow for the Sewer
System.
Source: Collier County Water -Sewer District
Under Florida law, System Development Fees may be validly imposed against new connections
in order to fund capital improvements that are needed to serve new connections or for debt service for
bonds or other obligations issued for such purposes (i.e., can only pay debt service on expansion - related
debt). Such lawfully available System Development Fees must be placed in separate accounts and used
only for the capital improvements or debt service attributable to expansion or over - sizing of the System
through construction or acquisition. System Development Fee revenues fluctuate with the amount of
new construction which occurs within the District's service area. Therefore, there can be no assurance
that such revenues will not decrease or be eliminated altogether in the event that new construction, might
decrease or cease altogether within the System service area. See 'SECURITY FOR THE BONDS —
General' herein for more information relating to System Development Fees.
System Development Fee per ERC
Water Sewer Combined
Collier County Water -Sewer District $2,600 $2,515 $5,115
Source: Collier County Water -Sewer District
Capital Improvement Program
The District's most recent Capital Improvement Program for the Water System and Sewer System
was substantially derives from the 2014 Water Master Plan Update and 2014 Sewer Master Plan Update
(collectively, the '2014 Capital Improvement Master Plan Updates'), respectively and used as the basis for
the User Rate Study adopted by the Board in September 2014. Insubstantial changes have been
incorporated per the adopted fiscal years 2015 and 2016 capital budget, as well as out years through 2020
which will be vetted in the upcoming user rate study in fiscal 2017.
25694/006/01094478.DOCv3
48
The District's Capital Improvement Program is reviewed by the County on an annual basis.
Accordingly, the total cost of the Capital Improvement Program could be more or less depending on
future demand requirements and service area needs, actual contract awards and other economic factors.
Capital Improvement Program:
Water System CIP Projects:
Water Capital Account Projects
Total Water System CIP Projects:
Estimated
Capital CostG)
$90,390,000
$90,390,000
Sewer System CIP Projects:
Sewer Capital Account CIP Projects(2) $210,559,000
Total Sewer System CIP Projects: $210,559,000
Capital Improvement Program Total $300,949,000
(1) Amounts shown derived from the 2015 Annual Update of Inventory Report approved by the
Board in November, 2015.
(2) Includes reclaimed (irrigation quality) water projects.
Source: Collier County Water -Sewer District
Historical Operating Results
The historical operating results for the System are presented for the fiscal years ended
September 30, 2010 through 2014. The historical operating results have been prepared based on financial
information compiled and provided by the County and information included in the County's CAFRs for
such fiscal years. The operating results for the fiscal year ended September 30, 2015 have not been
finalized for accounting and financial reporting purposes as of the date hereof. Therefore, the estimates
for such fiscal year were included as a component of the projections. In general, the historical operating
results have been prepared in a manner consistent with the requirements of the Resolution relative to the
determination of Net Revenues of the System. Therefore, the amounts shown reflect certain differences in
the presentation of the financial results when compared to the County's annual financial reports.
Specifically, these major differences relate to: (i) the determination of Operating Expenses
(i.e., depreciation and amortization expenses not recognized); (ii) the treatment of interest income
(i.e., does not include earnings on System Development Fees or Construction Fund balances, if any,
which are restricted to such Funds); and (iii) recognition of debt service payments (both principal and
interest components) which, as a System requirement, are presented on an accrued (funding) basis.
25694/006/01094478.DOCv3
49
The historical operating results for the System are summarized as follows:
Historical Operating Results(")
Fiscal Year Ended September 30,
System Development Fees(')
2011
2012
2013
2014
Total Sales Revenues(z)
$101,960,419
$98,634,958
$101,823,385
$104,921,033
Allowance for Funds Prudently Invested(3)
1,235,636
1,829,187
516,920
0
Miscellaneous Revenue(4)
2,256,439
2,219,738
2,312,157
3,003,311
Total Operating Revenue
$105,452,494
$102,683,883
$104,652,462
$107,924,344
Non - Operating Revenue(')
1,182,189
1,342,459
929,609
1,478,079
Gross Revenues
$106,634,683
104,026,342
$105,582,071
$109,402,423
Less: Operating Expenses(6)
60,106,549
58,155,432
68,916,116
69,709,955
Net Revenues Available for Debt Service
$46,528,134
$45,870,910
$36,665,955
$39,692,468
System Development Fees(')
$7,415,367
$8,731,883
$13,502,519
$11,050,253
Special Assessment Revenues
0
0
0
0
Pledged Funds Available for Debt Service
$53,943,501
$54,602,793
$50,168,474
$50,742,721
SENIOR LIEN BONDS DEBT SERVICE COVERAGE«
Net Revenue Debt Service Coverage
Net Revenues Available for Debt Service
$46,528,134
$45,870,910
$36,665,955
$39,692,468
Total Debt Service on Bonds
$11,679,957
$11,683,132
$11,689,791
$9,952,972
Debt Service Coverage (100% Required)
398%
393%
314%
399%
AND
Pledged Funds Debt Service Coverage
Pledged Funds Available for Debt Service
$53,943,501
$54,602,793
$50,168,474
$50,742,721
Total Debt Service on Bonds
$11,679,957
$11,683,132
$11,689,791
$9,952,972
Debt Service Coverage (125% Required)
462%
467%
429%
510%
[Footnotes on following page]
25694/006/01094478.DOCv3
50
2015
(1) Information was obtained from the County's Comprehensive Annual Financial Report for each
respective fiscal year and other financial information provided by the County. Coverage tests are
defined in the Resolution. The operating results for the fiscal year ended September 30, 2015
have not been finalized for accounting and financial reporting purposes but was included as a
component of the projections contained below.
(2) Amounts shown reflect reported revenues recognized by the System for each respective year, and
are based on rates as adopted by the Board during the historical period shown. The Sales
Revenues as reported by the County for the historical period shown are a result of a combination
of System growth and the implementation of such historical rate adjustments.
(3) Amounts shown derived from respective rate resolutions and sunset 12/31/12 per Ordinance
2006 -27 Section 1(4). The Allowance for Funds Prudently Invested was paid coincident with the
payment of the Water and Wastewater System Development Fees.
(4) Miscellaneous revenues include meter tapping charges, customer service fees, reuse irrigation
revenues and other similar charges.
(5) Amounts shown represent interest income on funds that are deposited in the Revenue Fund,
Principal Account, Interest Account and Renewal and Replacement Fund pursuant to the
Resolution and the water /wastewater capital accounts (accounts utilized by the District to fund
renewal and replacement projects), each of which is available for inclusion in Net Revenues and
for debt service coverage calculation purposes.
(6) Amounts shown do not include depreciation or amortization expenses which are non -cash
expenses and not considered as Operating Expense as defined in the Resolution.
(7) Includes all System Development Fees, only a portion of which are legally available to pay debt
service on the District Bonds under Florida law. It is possible that none of these amounts would
be legally available to pay debt service on the Bonds and therefore would not be available to be
counted for purposes of meeting the rate covenant or Additional Bonds test in the Resolution.
See 'SECURITY FOR THE BONDS — General' in the Official Statement. Under Florida law,
impact fees such as the System Development Fees may be validly imposed against new
construction or development in order to fund capital improvements or capacity that are
necessitated by such new construction or development or to satisfy debt service for bonds or
other obligations issued for such purposes. Proceeds of such System Development Fees may be
used only for the capital improvements or capacity attributable to the new construction or
development or to pay associated debt service.
Source: Collier County Water -Sewer District
RISK FACTORS
The future financial condition of the System could be affected adversely by, among other things,
legislation, environmental and other regulatory actions as set forth above, changes in demand for
services, economic conditions, demographic changes, and litigation. In addition to those items listed in
the preceding sentence, some of the possible changes in the future may include, but not be limited to, the
following:
1. The County's water and sewer facilities are subject to regulation and control by
numerous federal and state governmental agencies. Neither the District nor its consultants can predict
future policies such agencies may adopt. Future changes could result in the District having to
discontinue operations at certain facilities or to make significant capital expenditures and could generate
substantial litigation.
25694/006/01094478.DOCv3
51
2. Estimates of revenues and expenses contained in this Official Statement and the
realization of such estimates, are subject to, among other things, future economic and other conditions
which are unpredictable and which may adversely affect such revenues and expenses, and in turn, the
payment of the Series 2016 Bonds.
3. While the District expects to complete the five year capital improvement plan on time
and within budget, no assurance can be given to potential investors that the District will in fact be able to
meet such expectations. The timing and costs of completing the five year capital improvement plan are
subject to amendment from year to year.
INVESTMENT POLICY
The moneys held in the funds and accounts under the Resolution may only be invested in
Authorized Investments (as defined in the Resolution). The investment of surplus funds is currently
governed by the provisions of the County's Investment Policy, established by the Board under Section
218, Florida Statutes. The policy authorizes investment of surplus public funds in the permitted
investments described in Section 218.415, Florida Statutes.
Pursuant to a Board resolution, the Clerk of the Circuit Court (the 'Clerk') administers to the
investment policy for investment of such surplus funds. The investment policy establishes guidelines as
to the type, maturity, composition and risk relating to the County's investment portfolio.
Permitted investments pursuant to such investment policy include the following:
1. Florida Local Government Surplus Trust Fund (State Board of Administration ('SBA'));
2. US Government Securities - Direct Obligations;
3. US Federal Agencies - Backed by Full Faith and Credit of US Government;
4. US Federal Instrumentalities - US Federal Agency Securities Not Backed by Full Faith
and Credit of US Government, except for Student Loan Marketing Association;
5. Certificates of Deposit - Collateralized with US Government Securities or Federal
Agencies;
6. Repurchase Agreements;
7. Fixed Income Mutual Funds - Collateralized with US Government Securities or Federal
Agencies;
8. Domestic Bankers Acceptances - Rated 'AA' or higher, and inventory based;
9. Prime Commercial Paper - Rated 'A -1' and 'P -1;'
10. Tax - Exempt Obligations - Rated 'AA' or higher and issued by state or local governments;
11. Now Account - Fully collateralized in accordance with Chapter 280, Florida Statutes
(limited to Depository Bank /Concentration Bank);
12. Variable Rate Securities only if the rate is a straight floating rate that is set in a direct, as
opposed to inverse, relationship to a single index; and
13. Mortgage Securities (CMOs) only if they are:
a. Issued by US Federal Agencies or US Federal Instrumentalities,
b. Pass the Federal Financial Investment Examination Council (FFIEC) test at time
of purchase, and
C. Have an average life of seven (7) years or less and have an absolute final
maturity of no more than fifteen (15) years at zero PSA. The term 'zero PSA'
25694/006/01094478.DOCv3
52
means that all interest and principal payments are guaranteed to be made by the
stated final maturity assuming no prepayments.
Specifically prohibited investments include the following:
1. Interest only strips of mortgaged backed securities;
2. Leveraged bonds;
3. Structured notes or financings other than mortgage securities that meet the provisions of
the investment policy (permit callable and step up coupons);
4. Variable rate securities that set a rate based on an inverse relationship to an index; and
5. Variable rate debt that sets a rate based on more than a single index.
The objective of the investment policy is to match investment cash flow and maturity with known
cash needs and anticipated cash flow requirements (i.e., match assets to liabilities) to the extent possible.
Investment of funds shall have final maturities of not more than five (5) years, except for:
1. SBA - no stated final maturity;
2. Certificates of Deposit -1 Year;
3. Repurchase Agreements - 90 Days;
4. Bankers Acceptances - 180 Days;
5. Prime Commercial Paper - 180 Days;
6. Fixed Income Mutual Funds - no stated final maturity. However, underlying US
Government Securities and Federal Agencies have average maturity of 1 year;
7. Mortgage Securities - average life of 7 years or less and have an absolute final maturity of
no more than 15 years at zero PSA; and
8. US Government Securities and Federal Agencies deposited into an escrow account in
connection with the refunding of a County bond issue can have a final maturity of more
than 5 years.
Mortgage securities shall not be used to match liabilities that are reasonably definable as to
amount and disbursement date. Mortgage securities can only be used to invest funds associated with
reserves or liabilities that are not associated with a specifically identified cash flow schedule. Mortgage
securities can be used to prudently enhance the return on the portfolio.
Any and all exceptions to the investment policy require a vote of the majority of Board.
Furthermore, the Board may revise the aforementioned investment policy from time to time.
LEGAL MATTERS
Certain legal matters in connection with the issuance of the Series 2016 Bonds are subject to an
approving legal opinion of Nabors, Giblin & Nickerson, P.A., Tampa, Florida, Bond Counsel, whose
approving opinion (a form of which is attached hereto as 'APPENDIX D — Form of Bond Counsel
Opinion') will be available at the time of delivery of the Series 2016 Bonds. The actual legal opinion to be
delivered by Bond Counsel may vary from that text if necessary to reflect facts and law on the date of
delivery. Such opinion will speak only as of its date, and subsequent distribution of it by recirculation of
this Official Statement or otherwise shall create no implication that Bond Counsel has reviewed or
expresses any opinion concerning any of the matters referenced in the opinion subsequent to its date.
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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
2016 Bonds; provided, however, that Bond Counsel will render an opinion to the Underwriter of the
Series 2016 Bonds (upon which opinion only the Underwriter may rely) relating to the fairness of the
presentation of certain statements contained herein under the heading 'TAX EXEMPTION' and certain
statements which summarize provisions of the Resolution, the Series 2016 Bonds, and federal tax law,
and (2) the compliance with any federal or state law with regard to the sale or distribution of the Series
2016 Bonds.
Certain legal matters will be passed upon by Jeffrey A. Klatzkow, Esq., District Attorney, and by
Bryant Miller Olive P.A., Tampa, Florida, Disclosure Counsel to the District.
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 2016
Bonds, or any proceedings or transactions relating to their issuance, sale, execution, or delivery, or the
adoption of the Resolution, or the pledge of the Pledged Funds. Neither the creation, organization or
existence, nor the title of the present members of the Board, or other officers of the County is being
contested.
The Board has been named as a defendant in three related lawsuits, styled Francis Hussey, et
al v. Collier County, Case No. 08- 6933 -CA; Board of County Commissioners v. Francis D Hussey, et al.,
Case No. 08- 6988 -CA consolidated with 08- 6933 -CA; and Sean Hussey, et al.. v. Collier County, et al.,
Case No. 08- 7025 -CA. On September 11, 2008, the Plaintiffs' Francis D. Hussey, Jr. and Mary P.
Hussey, husband and wife, and Winchester Lakes Corporation, a Florida corporation, filed an Inverse
Condemnation suit seeking monetary damages from Collier County, the Honorable Charlie Crist, the
Governor of the State of Florida and the Florida Department of Community Affairs. The Husseys
contend that the designation of certain real property owned by them by a Growth Management Plan
Amendment adopted in 2002 had the effect of precluding mining activities on property, thereby
resulting in a substantial diminution in value of the real estate, which the Plaintiffs contend to be
compensable under Florida law. The Complaint alleges damage claims, as of June, 2002, in the amount
of $67,300,000, and as of July, 2007, in the amount of $91,500,000. The Plaintiffs have also presented a
claim for "inverse condemnation based on a regulatory taking of Plaintiffs' property," in an amount
not specified in the Complaint. The Wildlife Federation and Collier County Audubon Society was
granted leave to intervene in the suit by the Court on April 29, 2009. On July 9, 2009, the Florida
Wildlife Federation and Collier County Audubon Society served upon Defendants Francis and Mary
Hussey a Notice of Intent to Sue over Violations of the Endangered Species Act of 1973 (16 U.S.C. 1531
et sec..) Land Clearing of Primary Panther Habitat, RCW Foraging Habitat, and Wood Stork Foraging
Habitat. The cases have been dismissed with prejudice by the trial court and are now on appeal. The
parties recently entered into a Settlement Agreement, conditioned upon Court approval, with no costs
to be incurred by the County. County believes that this litigation will be concluded with no risk of
liability. Regardless, whether or not the plaintiffs are successful, any potential liability is not
expected to affect the County's ability to pay the principal and interest on the Series 2016 Bonds.
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
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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 or the District, and certain additional financial information, unless the District
believes in good faith that such information would not be considered material by a reasonable investor.
Neither the County nor the District 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 2016 Bonds.
The County or the District has not undertaken an independent review or investigation of
securities for which it has served as conduit issuer. The County or the District 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 2016 Bonds because the County or the District 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 or the District would
have been pledged or used to pay such securities or the interest thereon.
TAX EXEMPTION
Opinion of Bond Counsel
In the opinion of Bond Counsel, the form of which is included as Appendix D hereto, the interest
on the Series 2016 Bonds is excludable from gross income and is not a specific item of tax preference for
federal income tax purposes under existing statutes, regulations, rulings and court decisions. However,
interest on the Series 2016 Bonds is taken into account in determining adjusted current earnings for
purposes of computing the alternative minimum tax imposed on corporations pursuant to the Internal
Revenue Code of 1986, as amended (the 'Code'). Failure by the District to comply subsequently to the
issuance of the Series 2016 Bonds with certain requirements of the Code, regarding the use, expenditure
and investment of bond proceeds and the timely payment of certain investment earnings to the Treasury
of the United States, may cause interest on the Series 2016 Bonds to become includable in gross income
for federal income tax purposes retroactive to their date of issue. The District 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 2016 Bonds for purposes of federal income taxation.
In rendering this 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 2016 Bonds, including, among
other things, restrictions relating to the use of investment of the proceeds of the Series 2016 Bonds and the
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payment of certain arbitrage earnings in excess of the 'yield' on the Series 2016 Bonds to the Treasury of
the United States. Noncompliance with such provisions may result in interest on the Series 2016 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 2016 Bonds. Prospective purchasers of the Series 2016 Bonds should be aware that the ownership
of the Series 2016 Bonds may result in other collateral federal tax consequences. For example, ownership
of the Series 2016 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 2016 Bonds, (2) the branch
profits tax, and (3) the inclusion of interest on the Series 2016 Bonds in passive income for certain
Subchapter S corporations. In addition, the interest on the Series 2016 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 2016 BONDS AND THE
RECEIPT OR ACCRUAL OF THE INTEREST THEREON MAY HAVE ADVERSE FEDERAL TAX
CONSEQUENCES FOR CERTAIN INDIVIDUAL OR CORPORATE BONDHOLDERS, INCLUDING,
BUT NOT LIMITED TO, THE CONSEQUENCES DESCRIBED ABOVE. PROSPECTIVE
BONDHOLDERS SHOULD CONSULT WITH THEIR TAX SPECIALISTS FOR INFORMATION IN
THAT REGARD.
Other Tax Matters
Interest on the Series 2016 Bonds may be subject to state or local income taxation under
applicable state or local laws in other jurisdictions. Purchasers of the Series 2016 Bonds should consult
their tax advisors as to the income tax status of interest on the Series 2016 Bonds in their particular state
or local jurisdictions.
During recent years legislative proposals have been introduced in Congress, and in some cases
enacted, that altered certain federal tax consequences resulting from the ownership of obligations that are
similar to the Series 2016 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 2016 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 2016 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 2016 Bonds. For example, proposals have been discussed in connection with deficit spending
reduction, job creation and other tax reform efforts that could significantly reduce the benefit of, or
otherwise effect the exclusion from gross income of, interest on obligations such as the Series 2016 Bonds.
The further introduction or enactment of one or more of such proposals could affect the market price or
marketability of the Series 2016 Bonds.
Tax Treatment of Original Issue Discount
The initial offering price of the Series 2016 Bonds maturing on October 1, through October 1,
inclusive, and October 1, (the 'Discount Bonds') is less than the stated principal amounts
25694/006/01094478.DOCv3
56
thereof. Under the Code, the difference between the principal amount of the Discount Bonds and the
initial offering price to the public (excluding bond houses and brokers) at which price a substantial
amount of such Discount Bonds of the same maturity was sold, is 'original issue discount.' Original
issue discount represents interest which is excluded from gross income; however, such interest is taken
into account for purposes of determining the alternative minimum tax imposed on corporations and
accrues actuarially over the term of a Discount Bond at a constant interest rate. A purchaser who
acquires a Discount Bond in the initial offering at a price equal to the initial offering price thereof set forth
on the cover page of this Official Statement will be treated as receiving an amount of interest excludable
from gross income for federal income tax purposes equal to the original issue discount accruing during
the period such purchaser holds such Discount Bond and will increase its adjusted basis in such Discount
Bond by the amount of such accruing discount for the 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 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 described
above. Prospective purchasers of Discount Bonds should consult their own tax advisors with respect to
the precise determination for federal income tax purposes of interest accrued upon the sale or other
disposition of Discount Bonds and with respect to the state and local tax consequences of owning and
disposing of Discount Bonds.
Bond Premium
The difference between the principal amount of the Series 2016 Bonds maturing on October 1,
through and including October 1, and (collectively, the 'Premium Bonds') and the initial
offering price to the public (excluding bond houses, brokers or similar persons or organizations acting in
the capacity of underwriters or wholesalers) at which price a substantial amount of such Premium Bonds
of the same maturity was sold constitutes to an initial purchaser amortizable bond premium which is not
deductible from gross income for Federal income tax purposes. The amount of amortizable bond
premium for a taxable year is determined actuarially on a constant interest rate basis over the term of
each Premium Bond. For purposes of determining gain or loss on the sale or other disposition of a
Premium Bond, an initial purchaser who acquires such obligation in the initial offering to the public at
the initial offering price is required to decrease such purchaser's adjusted basis in such Premium Bond
annually by the amount of amortizable bond premium for the taxable year. The amortization of bond
premium may be taken into account as a reduction in the amount of tax - exempt income for purposes of
determining various other tax consequences of owning such Premium Bonds. Owners of the Premium
Bonds are advised that they should consult with their own advisors with respect to the state and local tax
consequences of owning such Premium Bonds.
VERIFICATION OF ARITHMETICAL COMPUTATIONS
At the time of the delivery of the Series 2016 Bonds, the Verification Agent will deliver a report
on the mathematical accuracy of the computations contained in schedules provided to them and
prepared by The Arbitrage Group, Inc. on behalf of the District relating to (a) the sufficiency of the
anticipated cash and maturing principal amounts and interest in Refunding Securities to pay, when due,
the principal, whether at maturity or upon prior redemption, interest and call premium requirements, if
any, of the Refunded Bonds and (b) the 'yield' on the Series 2016 Bonds and on the Refunding
Securities considered by Bond Counsel in connection with their opinion that the Series 2016 Bonds are not
'arbitrage bonds' within the meaning of Section 148 of the Code, as amended.
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RATINGS
Fitch Ratings ('Fitch') and Moody's Investors Service, Inc. (' Moody's') have assigned their ratings
of and '_,' respectively, to the Series 2016 Bonds. In addition, Fitch and Moody's have assigned
underlying ratings of and '.'respectively, without giving any regard to such Policy. 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 2016 Bonds. An explanation of the significance of
the ratings can be received from the rating agencies, at the following addresses: Fitch Ratings, One State
Street Plaza, New York, New York 10004 and Moody's Investors Service, 99 Church Street, New York,
New York 10007 -2796.
FINANCIAL ADVISOR
Public Financial Management, Inc., Coral Gables, Florida, is the Financial Advisor to the District
with respect to the sale of the Series 2016 Bonds. The Financial Advisor has assisted the District in the
preparation of this Official Statement and has advised the District as to other matters relating to the
planning, structuring and sale of the Series 2016 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.
Public Financial Management, Inc. is an independent advisory firm and is not engaged in the
business of underwriting, trading or distributing municipal or other public securities.
AUDITED FINANCIAL STATEMENTS
The general purpose financial statements of the County for the fiscal year ending September 30,
2014 of Clifton Larson Allen LLP, Naples, Florida (the 'Auditor') are included in 'APPENDIX C — Collier
County Audited Financial Statements For Fiscal Year Ended September 30, 2014' hereto. Such statements
speak only as of September 30, 2014. The consent of the County's auditor to include in this Official
Statement the aforementioned report was not requested, and the general purpose financial statements of
the County are provided only as publicly available documents. The 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 County expects the Auditors' report for the fiscal year ended September 30, 2015 to
be available in late April, 2016. When publicly available, such Auditors' report will be (i) included in the
final Official Statement, potentially as a supplement thereto (if it becomes available after the marketing of
the Series 2016 Bonds and before closing), or (ii) filed by or on behalf of the County with the Municipal
Securities Rulemaking Board ('MSRB') through the Electronic Municipal Market Access system
('EMMA') in an electronic format prescribed by the MSRB (if it becomes available after the closing of the
Series 2016 Bonds).
The Series 2016 Bonds are payable solely from Pledged Funds 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 District. See 'SECURITY FOR THE SERIES 2016 BONDS' herein. The general purpose
financial statements are presented for general information purposes only.
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The County covenanted and agreed in the Resolution to, immediately after the close of each fiscal
year, cause the financial statements of the County to be properly audited by a recognized independent
certified public accountant or recognized independent firm of certified public accountants, and shall
require such accountants to complete their report on the annual financial statements in accordance with
applicable law. The annual financial statements shall be prepared in conformity with generally accepted
accounting principles consistently applied.
The Governmental Accounting Standards Board (GASB) issued Statement No. 68, 'Accounting
and Financial Reporting for Pensions' ('GASB No. 68') - an amendment to GASB Statement No. 27,
'Accounting for Pensions by State and Local Governmental Employers', which is effective for the
County's fiscal year ended September 30, 2015. For a more complete description of GASB No. 68 and its
effect on the County's financial reporting, see 'APPENDIX A - Florida Retirement System' attached
hereto.
UNDERWRITING
The Series 2016 Bonds are being purchased by the Underwriter shown on the cover of the Official
Statement (the 'Underwriter') at an aggregate purchase price of $ (which equals the
principal amount of the Series 2016 Bonds, plus a net original issue premium of $ , less the
Underwriter's discount of $ ). The Underwriter's obligations are subject to certain
conditions precedent contained in the Official Notice of Sale which was prepared by the District, and it
will be obligated to purchase all of the Series 2016 Bonds if any Series 2016 Bonds are purchased. The
Series 2016 Bonds may be offered and sold to certain dealers (including dealers depositing such Series
2016 Bonds into investment trusts) at prices lower than such public offering prices, and such public
offering prices may be changed, from time to time, by the Underwriter.
CONTINGENT FEES
The District has retained Bond Counsel, the Financial Advisor and Disclosure Counsel with
respect to the authorization, sale, execution and delivery of the Series 2016 Bonds. Payment of the fees of
such professionals and an underwriting discount to the Underwriter is each contingent upon the issuance
of the Series 2016 Bonds.
ENFORCEABILITY OF REMEDIES
The remedies available to the owners of the Series 2016 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 2016 Bonds may not be
readily available or may be limited. The various legal opinions to be delivered concurrently with the
delivery of the Series 2016 Bonds, including Bond Counsel's approving opinion, will be qualified, as to
the enforceability of the remedies provided in the various legal instruments, by limitations imposed by
bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors enacted
before of after such delivery. See 'APPENDIX B - Composite Resolution' attached hereto for a
description of events of default and remedies.
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CONTINUING DISCLOSURE
The County has covenanted for the benefit of the Series 2016 Bondholders to provide certain
financial information and operating data relating to the County and the Series 2016 Bonds in each year,
and to provide notices of the occurrence of certain enumerated material events. The County has agreed
to file annual financial information and operating data and the audited financial statements with each
entity authorized and approved by the Securities and Exchange Commission (the 'SEC') to act as a
repository (each a 'Repository') for purposes of complying with Rule 15c2 -12 adopted by the SEC under
the Securities Exchange Act of 1934 (the 'Rule'). Effective July 1, 2009, the sole Repository is the
Municipal Securities Rulemaking Board. The County has agreed to file notices of certain enumerated
material events, when and if they occur, with the Repository.
The specific nature of the financial information, operating data, and of the type of events which
trigger a disclosure obligation, and other details of the undertaking are described in 'APPENDIX E -
Form of Continuing Disclosure Certificate' attached hereto. The Continuing Disclosure Certificate shall
be executed by the County prior to the issuance of the Series 2016 Bonds. These covenants have been
made in order to assist the Underwriter in complying with the continuing disclosure requirements of the
Rule.
With respect to the Series 2016 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. The County
inadvertently failed to comply with the requirement to timely file certain audited financial statements
and financial information for the fiscal year ended September 30, 2011 only with respect to the CUSIP
numbers applicable to the County's Special Obligation Refunding Revenue Bonds, Series 2010B and
Special Obligation Refunding Revenue Bonds, Series 2011. Upon realizing the failure to comply, the
County reported such circumstances in accordance with the requirements of the Rule, and cured such
filings on March 1, 2013. The County fully anticipates satisfying all future disclosure obligations required
pursuant to the Rule.
ACCURACY AND COMPLETENESS OF OFFICIAL STATEMENT
The references, excerpts, and summaries of all documents, statutes, and information concerning
the District or 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 2016 Bonds, the security for the payment of the Series 2016 Bonds and the rights and obligations of
the owners thereof and to each such statute, report or instrument. Copies of such documents may be
obtained from either the office of the Clerk of the Board of County Commissioners, Collier County
Government Complex, 3301 East Tamiami Trail, Building L, Naples, Florida 34112, telephone: (239) 774-
8097 or the County's Financial Advisor, Public Financial Management, Inc., 13350 Metro Parkway, Suite
302 Fort Myers, Florida 33966.
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 2016 Bonds.
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The appendices attached hereto are integral parts of this Official Statement and must be read in
their entirety together with all foregoing statements.
AUTHORIZATION OF OFFICIAL STATEMENT
The execution and delivery of this Official Statement has been duly authorized and approved by
the District. At the time of delivery of the Series 2016 Bonds, the District will furnish a certificate to the
effect that nothing has come to their attention which would lead it to believe that the Official Statement
(other than information herein related to DTC, the book -entry only system of registration and the
information contained under the caption "TAX EXEMPTION' and as to which no opinion shall be
expressed), as of its date and as of the date of delivery of the Series 2016 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 WATER -SEWER DISTRICT
By:
Approved as to form
and legal sufficiency:
County Attorney
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Chairwoman, Board of County
Commissioners Collier County, Florida
APPENDIX A
GENERAL INFORMATION REGARDING
COLLIER COUNTY, FLORIDA
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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 2015 the
County had an estimated population of 343,802. 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
Donna Fiala
Chairwoman
November, 2016
Tim Nance
Vice Chair
November, 2016
Tom Henning
Commissioner
November, 2016
Georgia A. Hiller, Esq.
Commissioner
November, 2018
Penny Taylor
Commissioner
November, 2018
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 Finance and Accounting (the 'Director') initiates the budget
planning process in January with budget policy discussions among key members of the fiscal and
administrative leadership team. These discussions culminate in the presentation and adoption of budget
policy and guidance by the Board in February. County division heads and elected officers submit their
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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, 2016 was adopted by the Board on September 20, 2015. 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, 2014. The Comprehensive Annual
Financial Report for the fiscal year ended September 30, 2014 appears in APPENDIX C attached to this
Official Statement. The County expects the Auditors' report for the fiscal year ended September 30, 2015
to be available in late April, 2016. When publicly available, such Auditors' report will be (i) included in
the final Official Statement, potentially as a supplement thereto (if it becomes available after the
marketing of the Series 2016 Bonds and before closing), or (ii) filed by or on behalf of the County with the
Municipal Securities Rulemaking Board ('MSRB') through the Electronic Municipal Market Access
system ('EMMA') in an electronic format prescribed by the MSRB (if it becomes available after the
closing of the Series 2016 Bonds).
The Governmental Accounting Standards Board (GASB) issued Statement No. 68, 'Accounting
and Financial Reporting for Pensions' ('GASB No. 68') — an amendment to GASB Statement No. 27,
'Accounting for Pensions by State and Local Governmental Employers', which is effective for the
County's fiscal year ended September 30, 2015. For a more complete description of GASB No. 68 and its
effect on the County's financial reporting, see '— Florida Retirement System' below.
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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
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Population
Population
United
Population
County
Percentage
State
Percentage
States
Percentage
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*
384,400
19.6
21,326,800
13.4
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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Most of the growth of Collier County is due to migration. As of December 31, 2014, the estimated
median age of the County's population was 47.9 years according to the University of Florida, Bureau of
Economic and Business Research.
COLLIER COUNTY EMPLOYMENT
BY MAJOR INDUSTRY
Industry
Establishments
Employees
Retail Trade
1,570
20,253
Accommodation and Food Services
857
19,097
Health Care and Social Assistance
1,023
17,632
Construction
1,728
13,094
Arts, Entertainment, and Recreation
261
7,897
Administrative and Waste Services
1,071
8,592
Public Administration
64
5,403
Other Services (except Public Administration)
1,264
6,019
Agriculture, Forestry, Fishing and Hunting
88
4,039
Professional and Technical Service
1,735
5,448
Finance and Insurance
637
3,839
Real Estate and Rental and Leasing
1,056
3,928
Wholesale Trade
414
3,220
Manufacturing
277
3,321
Transportation and Warehousing
231
1,941
Information
156
1,422
Management of Companies and Enterprises
121
530
Utilities
21
193
Mining
8
37
Educational Services
98
8,164
Unclassified Establishments
42
5
Source: Florida Research and Economic Information Database
Application, Labor
Market Statistics,
Quarterly Census of Employment and Wages Program, 2nd Quarter 2015.
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COLLIER COUNTY EMPLOYMENT
(2006 -2014)
BUILDING PERMIT ACTIVITIES IN COLLIER COUNTY
(2005 -2014)
Single Multi- Residential
Year Family Units Family Units Valuation(')
2005
4,052
2,570
$1,655,669
2006
State of
1,959
1,228,774
2007
1,069
County
Florida
2008
Labor
299
387,286
Unemployment
Unemployment
Year
Force
Employment Unemployment
Rate
Rate
2005
145,136
140,087
5,049
3.5%
3.7%
2006
152,464
147,706
4,758
3.1
3.2
2007
151,925
145,183
6,742
4.4
4.0
2008
148,368
137,814
10,554
7.1
6.3
2009
143,337
127,434
15,903
11.1
10.4
2010
145,349
128,427
16,922
11.6
11.1
2011
148,771
133,668
15,103
10.2
10.0
2012
152,895
139,925
12,970
8.5
8.5
2013
155,910
144,792
11,118
7.1
7.3
2014
161,233
151,727
9,506
5.9
6.3
Source: Florida Research and Economic Information Database Application, Labor Market Statistics, Local
Area Unemployment
Statistics Program.
BUILDING PERMIT ACTIVITIES IN COLLIER COUNTY
(2005 -2014)
Single Multi- Residential
Year Family Units Family Units Valuation(')
2005
4,052
2,570
$1,655,669
2006
2,829
1,959
1,228,774
2007
1,069
1,026
649,718
2008
652
299
387,286
2009
630
314
312,942
2010
766
493
371,116
2011
920
400
374,016
2012
1,296
316
N/A
2013
1,760
918
N/A
2014
2,477
1,133
N/A
(l) Valuation in thousands of dollars.
Source: University of Florida, Bureau of Economic and Business Research, Building Permit Activity in
Florida.
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Agriculture
Agriculture is a dominant factor in the economy of the County. Rainfall averages about 48 inches
annually with most of the precipitation occurring during the late spring and summer. The high yearly
rainfall and year -round mild temperature enable agriculture to be a productive sector of the County
economy. The agricultural industry represents five percent of the workforce. Farming activities are
located approximately 40 miles inland primarily centered around the community of Immokalee. Major
crops include tomatoes, peppers, cucumbers, melons and citrus. Beef cattle are also a significant farming
commodity.
Tourism
Tourism is a major factor in the economy of the County. Visitors to the County enjoy its Gulf of
Mexico beaches, golf, tennis and other attractions. Everglades National Park, the United States only
subtropical National Park, located near Naples, comprises a substantial portion of the County. Collier -
Seminole Park and Corkscrew Swamp are also located nearby. Salt water fishing in the Gulf of Mexico,
as well as fresh water fishing, makes the many lakes and waterways popular vacation spots. The County
is regarded as one of the largest shelling areas in the United States.
Transportation
The County is served by U.S. Highway 41 (otherwise known as the Tamiami Trail) and Interstate
75, which links Naples to the east coast of Florida and intersects U.S. Highway 27, providing access to the
Florida Turnpike. Interstate 75 also provides access to the County from the North. Greyhound Bus Lines
connects the County to all points within the State.
Air service is available at the Naples Airport owned by the City of Naples and covers an area of
approximately 650 acres. The airport has two lighted 5,000 feet hard surfaced runways, each 150 feet
wide. 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 approximately 45,200 students in 48 schools, including five
charter schools. The public schools provide a varied adult education program and a special program for
pre - school children. There are several private and parochial schools in the County offering classes from
kindergarten through the twelfth grade. 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.
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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 684 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.
N/A = Data not currently available
Source: Collier County Comprehensive Annual Financial Report for Fiscal Year Ending September 30,
2015.
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COLLIER COUNTY
FINANCIAL AND ECONOMIC DATA
(Fiscal Years 2003 -2015)
(Unaudited)
Per
Bank
Fiscal
Percent
Capita
Deposits
Year
Population
Increase/(Decrease)
Income
0( Os
2005
306,186
--
41,513
9,473
2006
326,658
6.7
42,846
10,665
2007
333,858
2.2
49,492
10,957
2008
332,854
(0.3)
57,446
11,026
2009
333,032
0.1
63,276
11,690
2010
331,800
(0.4)
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
N/A = Data not currently available
Source: Collier County Comprehensive Annual Financial Report for Fiscal Year Ending September 30,
2015.
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Assessed Valuation
The following table shows the assessed value and taxable value for operating millage in each of the past ten Fiscal Years.
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
IN COLLIER COUNTYM
(Fiscal Years 2006 -2015)
(Unaudited)
(Amounts Expressed in Thousands)
Fiscal
Total
Estimated
Assessed
Year
Centrally
Less:
Total Taxable
Direct
Actual
Value as a
Ended
Residential
Personal
Assessed
Tax
Assessed
Tax
Taxable
Percentage of
September 30
Property
Property
Property
Exempt
Value
Rate
Value
Actual Value(2)
2006
$66,375,040
$1,956,646
$143
$6,890,007
$61,441,822
4.9433
$68,331,829
100%
2007
82,909,061
2,156,726
202
8,023,791
77,042,198
4.6486
85,065,989
100
2008
88,819,491
2,321,048
226
8,575,874
82,564,891
4.1064
91,140,765
100
2009
86,949,935
2,430,996
202
10,718,166
78,662,967
4.1246
89,381,133
100
2010
77,359,174
2,444,323
202
9,826,950
69,976,749
4.4236
79,803,699
100
2011
67,947,039
2,259,654
171
8,770,667
61,436,197
4.4151
70,206,864
100
2012
64,464,592
2,248,702
187
8,510,911
58,202,570
4.4149
66,713,481
100
2013
64,723,621
2,240,098
184
8,471,142
58,942,761
4.4126
66,963,903
100
2014
66,977,907
2,198,734
152
8,539,021
60,637,772
4.1592
69,176,193
100
2015
71,149,974
2,186,145
195
8,739,269
64,597,045
4.1582
73,336,324
100
(1) Property is assessed as of January 1, and
taxes based
on these assessments are levied
and become
due on the following November 1.
Therefore, assessments and
levies applicable
to a certain year are collected in the fiscal
year ending during
the next succeeding calendar
year.
(2) The basis
of assessed value required by the state is 100% of actual value.
Source: Collier County Comprehensive Annual Financial
Report
for Fiscal Year
Ending September 30, 2015.
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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 GOVERNMENTSM
(Fiscal Years 2006 -2015)
(Unaudited)
Collier County Other
Special Debt County
Fiscal General Revenue Service School Independent
Year Fund Funds Funds Total District Districts Total
2006 3.8772 0.9161 0.1500 4.9433 5.9730 1.3423 12.2586
2007 3.5790 0.8470 0.2226 4.6486 5.5250 1.3403 11.5139
2008 3.1469 0.7362 0.2233 4.1064 5.3510 1.2792 10.7366
2009 3.1469 0.7528 0.2249 4.1246 4.9090 1.2784 10.3120
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
�l> Basis for property tax rates is 1 mill per $1,000 of assessed value. Property is assessed as of
January 1 and taxes based on those assessments are levied according to the tax rate in effect that
tax year and become due on November 1. Therefore, assessments and tax levies applicable to a
certain tax year are collected in the fiscal year ending during the following calendar year.
Source: Collier County Comprehensive Annual Financial Report for Fiscal Year ending September 30,
2015.
Florida Constitutional Limitations and Property Tax Reform
Several Constitutional and Legislative amendments affecting ad valorem taxes have been
approved by voters in the past including the following:
Save Our Homes Amendment. By voter referendum held on November 3, 1992, Article VII,
Section 4 of the State Constitution was amended by adding thereto a subsection which, in effect, limits the
increases in assessed just value of homestead property to the lesser of (1) three percent of the assessment
for the prior year or (2) the percentage change in the Consumer Price Index for all urban consumers, U.S.
City Average, all items 1967 =100, or successor reports for the preceding calendar year as initially reported
by the United States Department of Labor, Bureau of Labor Statistics. Further, the amendment provides
that (1) no assessment shall exceed just value, (2) after any change of ownership of homestead property or
upon termination of homestead status such property shall be reassessed at just value as of January 1 of
the year following the year of sale or change of status, (3) new homestead property shall be assessed at
just value as of January 1 of the year following the establishment of the homestead, and (4) changes,
additions, reductions or improvements to homestead shall initially be assessed as provided for by general
law, and thereafter as provided in the amendment. This amendment is known as the 'Save Our Homes
Amendment.' The effective date of the amendment was January 5, 1993 and, pursuant to a ruling by the
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Florida Supreme Court, it began to affect homestead property valuations commencing January 1, 1995,
with 1994 assessed values being the base year for determining compliance.
Millage Rollback Legislation. In 2007, the Florida Legislature adopted Chapter 2007 -321, Laws of
Florida, a property tax plan which significantly impacted ad valorem tax collections for Florida local
governments. One component of the adopted legislation required counties, cities and special districts to
rollback their millage rates for the 2007 -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 legislation 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.
The County fell into the 9% ad valorem tax revenue reduction category. The County's General
Fund millage rate for the fiscal year ended September 30, 2016 is $3.5645.
Constitutional Amendments Related to Ad Valorem Exemptions. On January 29, 2008, in a
special election held in conjunction with the State's presidential primary, the requisite number of voters
approved amendments to the Florida Constitution exempting certain portions of a property's assessed
value from taxation. The following is a brief summary of certain important provisions contained in such
amendments:
1. Provides for an additional exemption for the assessed value of homestead property
between $50,000 and $75,000, thus doubling the existing homestead exemption for property with an
assessed value equal to or greater than $75,000.
2. Permits owners of homestead property to transfer their Save Our Homes Amendment
benefit (up to $500,000) 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 Amendment benefit, such proportional amount equaling
the just value of the new homestead divided by the just value of the prior homestead multiplied by the
assessed value of the prior homestead. As discussed above, the Save Our Homes Amendment generally
limits annual increases in ad valorem tax assessments for those properties with homestead exemptions to
the lesser of three percent (3 %) or the annual rate of inflation.
3. Exempts from ad valorem taxation $25,000 of the assessed value of property subject to
tangible personal property tax.
4. Limits increases in the assessed value of non - homestead property to 10% per year,
subject to certain adjustments. The cap on increases would be in effect for a 10 -year period, subject to
extension by an affirmative vote of electors.
The amendments were effective for the 2008 tax year (fiscal year 2008 -2009 for local
governments).
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Over the last few years, the Save Our Homes Amendment assessment cap and portability
provisions described above have been subject to legal challenge. The plaintiffs in such cases have argued
that the Save Our Homes Amendment assessment cap constitutes an unlawful residency requirement for
tax benefits on substantially similar property in violation of the equal protection provisions of the Florida
Constitution and the Privileges and Immunities Clause of the Fourteenth Amendment to the United
States Constitution. The plaintiffs also argued that the portability provision simply extends the
unconstitutionality of the tax shelters granted to long -term homeowners by Save Our Homes
Amendment. The courts in each case have rejected such constitutional arguments and upheld the
constitutionality of such provisions; however, there is no assurance that any future challenges to such
provisions will not be successful.
In addition to the legislative activity described above, the constitutionally mandated Florida
Taxation and Budget Reform Commission (required to be convened every 20 years) (the 'TBRC')
completed its meetings on April 25, 2008 and placed several constitutional amendments on the
November 4, 2008 General Election ballot. Three of such amendments were approved by the voters of
Florida, which, among other things, do the following: (a) allow the Florida Legislature, by general law, to
exempt from assessed value of residential homes, improvements made to protect property from wind
damage and installation of a new renewable energy source device; (b) assess specified working
waterfront properties based on current use rather than highest and best use; (c) provide a property tax
exemption for real property that is perpetually used for conservation (began in 2010); and, (d) for land
not perpetually encumbered, require the Florida Legislature to provide classification and assessment of
land use for conservation purposes solely on the basis of character or use.
Exemption for Deployed Military Personnel. In the November 2010 General Election voters
approved a constitutional amendment which provides an additional homestead exemption for deployed
military personnel. The exemption equals the percentage of days during the prior calendar year that the
military homeowner was deployed outside of the United States in support of military operations
designated by the Florida Legislature. This constitutional amendment took effect on January 1, 2011. At
this time, it is impossible to estimate with any certainty the level of impact that the constitutional
amendment will have on the County.
Other Proposals Affecting Ad Valorem Taxation. During the Florida Legislature's 2011 Regular
Session, it passed Senate Joint Resolution 592 ('SJR 592'). SJR 592 allows totally or partially disabled
veterans who were not Florida residents at the time of entering military service to qualify for the combat -
related disabled veteran's ad valorem tax discount on homestead property. The amendment took effect
on January 1, 2013.
During the Florida Legislature's 2012 Regular Session, it passed House Joint Resolution 93 ('HJR
93'). HJR 93 allows the Florida Legislature to provide ad valorem tax relief to the surviving spouse of a
veteran who died from service - connected causes while on active duty as a member of the United States
Armed Forces and to the surviving spouse of a first responder who died in the line of duty. The amount
of tax relief, to be defined by general law, can equal the total amount or a portion of the ad valorem tax
otherwise owed on the homestead property. The amendment took effect on January 1, 2013.
Also during the Florida Legislature's 2012 Regular Session, it passed House Joint Resolution 169
('HJR 169') allowing the Florida Legislature by general law to permit counties and municipalities, by
ordinance, to grant an additional homestead tax exemption equal to the assessed value of homestead
25694/006/01094478.DOCv3
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property to certain low income seniors. To be eligible for the additional homestead exemption the county
or municipality must have granted the exemption by ordinance; the property must have a just value of
less than $250,000; the owner must have title to the property and maintained his or her permanent
residence thereon for at least 25 years; the owner must be age 65 years or older; and the owner's annual
household income must be less than $27,300. The additional homestead tax exemption authorized by
HJR 169 would not apply to school property taxes. To date, the County has not enacted an ordinance
granting this additional homestead exemption.
Each of the above described proposals was approved by the voters on November 6, 2012. At
present, the impact of these amendments on the County's finances cannot be accurately ascertained.
There can be no assurance that similar or additional legislative or other proposals will not be introduced
or enacted in the future that would, or might apply to, or have a material adverse effect upon, the
County's finances.
During the Florida Legislature's 2013 Regular Session, it passed Senate Bill 1830 ('SB 1830'),
which was signed into law by the Governor and created a number of changes affecting ad valorem
taxation. First, SB 1830 provides long -term lessees the ability to retain their homestead exemption and
related assessment limitations and exemptions in certain instances. Second, SB 1830 inserts the term
'algaculture' in the definition of 'agricultural purpose' and inserts the terms 'aquacultural crops' in the
provision specifying the valuation of certain annual agricultural crops, nonbearing fruit trees and nursery
stock. Third, SB 1830 allows for an automatic renewal for assessment reductions related to certain
additions to homestead properties used as living quarters for a parent or grandparent and aligns related
appeal and penalty provisions to those for other homestead exemptions. Fourth, SB 1830 deletes a
statutory requirement that the owner of the property must reside upon the property to qualify for a
homestead exemption. Fifth, SB 1830 clarifies the property tax exemptions counties and cities may
provide for certain low income persons age 65 and older. Sixth, SB 1830 removes a residency
requirement that a senior disabled veteran must have been a Florida resident at the time they entered the
service to qualify for certain property tax exemptions. Seventh, SB 1830 repeals the ability for certain
limited liability partnerships to qualify for the affordable housing property tax exemption. Eighth, SB
1830 exempts property used exclusively for educational purposes when the entities that own the property
and the educational facility are owned by the same natural persons.
Also during the Florida Legislature's 2013 Regular Session, the Florida Legislature passed House
Bill 277 ('HB 277'), which was signed into law by the Governor. HB 277 provides that certain renewable
energy devices are exempt from being considered when calculating the assessed value of residential
property. HB 277 only applies to devices installed on or after January 1, 2013. HB 277 took effect on
July 1, 2013.
Also during the Florida Legislature's 2013 Regular Session, the Florida Legislature passed House
Bill 1193 ('HB 1193'), which was signed into law by the Governor. HB 1193 eliminated three ways in
which the property appraiser had authority to reclassify agricultural land as non - agricultural land.
Additionally, HB 1193 relieves the value adjustment board of the authority to review the property
appraisers. HB 1193 is effective immediately and will apply retroactively to January 1, 2013.
At present, the impact of these amendments on the County's finances cannot be accurately
ascertained. There can be no assurance that similar or additional legislative or other proposals will not be
introduced or enacted in the future that would, or might apply to, or have a material adverse effect upon,
the County's finances.
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Legislative Proposals Relating to Ad Valorem Taxation. During recent years, various legislative
proposals and constitutional amendments relating to ad valorem taxation and revenue limitation have
been introduced in the State. Many of these proposals sought to provide for new or increased
exemptions to ad valorem taxation, limit the amount of revenues that local governments could generate
or otherwise restrict the ability of local governments in the State to levy ad valorem taxes at recent
historical levels. There can be no assurance that similar or additional legislative or other proposals will
not be introduced or enacted in the future that would, or might apply to, or have a material adverse effect
upon, the County's finances.
House Bill 1015 ('HB 1015') has been introduced which proposes to require taxing authorities,
such as the County, to post certain information relating to property tax procedures on their websites as
well as the vote record for the final adoption of the millage rate, the percentage increase in property taxes
and the name of each member of the governing body and their vote on the final millage rate. At the
present time, it is impossible to predict if such legislation will become law, and if passed into law.
However, the County does not expect HB 1015, if passed, will affect its ability to pay debt service on the
Series 2016A Bonds. There can be no assurance that similar or additional legislative or other proposals
will not be introduced or enacted in the future that would, or might apply to, or have a material adverse
effect upon, the County's finances.
Florida Retirement System
The information relating to the Florida Retirement System ( "FRS ") contained herein has been obtained
from the FRS Pension Plan and Other State Administered Systems Comprehensive Annual Financial Reports
available at www.dms.myflorida.com/ workforce_ operations/ retirement /publications /annual_reports and the Florida
Comprehensive Annual Financial Reports available at www.myfloridacfo.com /division /aa /Reports /. 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.
The Florida Retirement System (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 ('FRS Pension Plan').
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:
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• 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, and assistant capital
collateral representatives. Members of the Elected Officers' Class may elect to withdraw from the FRS or
participate in the SMSC in lieu of the Elected Officers' Class.
• 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.
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, Senior Management Service Class, and Elected Officers' Class 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
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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 may participate in the DROP for up to 36 additional months beyond their initial
60 -month participation period. Monthly retirement benefits remain in the FRS Trust Fund during DROP
participation and accrue interest. As of June 30, 2015, the FRS Trust Fund projected $3,119,220,735 in
accumulated benefits and interest for 34,829 current and prior participants in the DROP.
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 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 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, 2015, was $148,454,681,903. These funds were reserved to provide for
total current and future benefits, refunds, and administration of the FRS Pension Plan.
Effective July 1, 2011, both employees and employers of the FRS Fare 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
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both the FRS Pension Plan and the FRS Investment Plan. The uniform rates for Fiscal Year 2014 -15 are as
follows:
Membership Class
Employee
Contribution Rate
Employer
Contribution Rate')
Regular
3.00%
6.07 %
Special Risk
3.00
18.52
Special Risk Administrative Support
3.00
40.77
Elected Officers — Judges
3.00
31.87
Elected Officers -
Legislators /Attorneys /Cabinet
3.00
44.96
Elected Officers - County
3.00
41.94
Senior Management Service
3.00
19.84
Deferred Retirement Option Program
N/A
11.02
Total Contribution
Rate
9.07%
21.52
43.77
34.87
47.96
44.94
22.84
11.02
(1) These rates include the normal cost and unfunded actuarial liability contributions but do not
include the 1.26% contribution for the HIS and the fee of 0.04% 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, 2015.
The County contributed amounts were $24,853,351, $22,782,485 and $17,103,441 and for fiscal
years ended 2015, 2014 and 2013, respectively, equal to the required contribution for each year.
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Pension Amounts for the FRS Pension Plan.
Schedule of Changes in Net Pension Liability and Related RatiosM
(in thousands)
Total Pension Liability
Service cost
Interest on total pension liability
Effect of plan changes
Effect of economic /demographic (gains) or losses
Effect of assumption changes or inputs
Benefit payments
Net change in total pension liability
Total pension liability, beginning
Total pension liability, ending (a)
Fiduciary Net Position
Employer contributions
Member contributions
Investment income net of investment expenses
Benefit payments
Administrative expenses
Net change in plan fiduciary net position
Fiduciary net position, beginning
Fiduciary net position, ending (b)
Net pension liability, ending = (a) — (b)
Fiduciary net position as a % of total pension liability
Covered payroll(z)
Net pension liability as a % of covered payroll
June 30, 2014
June 30, 2015
$2,256,738
$2,114,047
11,489,921
11,721,563
0
0
(448,818)
1,620,863
1,256,045
0
(8,714,251)
(10,201,501)
5,839,635
5,254,972
150,276,128 156,115,763
$156,115,763 $161,370,735
$2,190,424
682,507
22,812,286
(8,714,250)
(18,352)
16,952,615
$2,438,085
698,304
5,523,287
(10,201,500)
(18,074)
(1,559,898)
133,061,677 150,014,292
$150,014,292 $148,454,394
$6,101,471 $12,916,341
96.09% 92.00%
$24,723,565 $32,726,034
24.68% 39.47%
(l) This schedule will fill in to a ten -year schedule as results for new fiscal years are calculated.
(Z) For June 30, 2014, covered payroll shown includes defined benefit plan actives and members in
DROP, but excludes the payroll for FRS Invest Plan members and payroll on which only UAL
rates are charged. For June 30, 2015, and later, covered payroll shown includes the payroll for
FRS Investment Plan members and payroll on which only UAL rates are charged.
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30, 2015.
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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, 2015, calculated based on the
discount rate and actuarial assumptions below:
June 30, 2014
June 30, 2015
Discount rate 7.65%
7.65%
Long -term expected rate of return, net of investment expense 7.65%
7.65%
Bond Buyer General Obligation 20 -Bond Municipal Bond Index N/A
N/A
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30, 2015.
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 the 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, 2015, were
based on the results of an actuarial experience study for the period July 1, 2008 - June 30, 2013.
Valuation Date
Measurement Date
Asset Valuation Method
Inflation
Salary increase including inflation
Mortality
Actuarial cost method
July 1, 2015
June 30, 2015
Fair Market Value
2.60%
3.25%
Generational RP -2000 with Projection Scale BB
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, 2015.
Sensitivity Analysis for the FRS Pension Plan. The following presents the net pension liability of
the FRS, calculated using the discount rate of 7.65 %, 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 (6.65 %) or one percentage
point higher (8.65 %) than the current rate.
1% Decrease Current Discount Rate 1% Increase
6.65% 7.65% 8.65%
Total pension liability $181,923,555,126 $161,370,735,088 $144,267,412,898
Fiduciary net position 148,454,393,902 148,454,393,902 148,454,393,902
Net pension liability $33,469,161,224 $12,916,341,186 $4,186,981,004)
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30, 2015.
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Retiree Health Insurance Subsidy
The Retiree Health Insurance Subsidy ('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, 2015, 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, 2015, the contribution rate was 1.26% of payroll pursuant to
Section 112.363, F.S. The state contributed 100% of its statutorily required contributions for the current
and preceding two years. 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 RatiosM
(in thousands)
Total Pension Liability
Service cost
Interest on total pension liability
Effect of plan changes
Effect of economic /demographic (gains) or losses
Effect of assumption changes or inputs
Benefit payments
Net change in total pension liability
Total pension liability, beginning
Total pension liability, ending (a)
Fiduciary Net Position
Employer contributions
Member contributions
Investment income net of investment expenses
Benefit payments
Administrative expenses
Net change in plan fiduciary net position
Fiduciary net position, beginning
Fiduciary net position, ending (b)
Net pension liability, ending = (a) — (b)
Fiduciary net position as a % of total pension liability
Covered payroll
Net pension liability as a % of covered payroll
June 30, 2014
June 30, 2015
$190,371
$217,519
409,907
405,441
0
0
0
0
386,383
607,698
(407,276)
(425,086)
579,385
805,572
8,864,244 9,443,629
$9,443,629 $10,249,201
$342,566
0
219
(407,275)
(54)
(64,544)
$382,454
0
208
(425,085)
(188)
(42,611)
157,929 93,385
93,385 50,774
$9,350,244
0.99%
29,676,340
31.51%
10,198,427
0.50%
30,340,449
33.61%
(1) This schedule will fill in to a ten -year schedule as results for new fiscal years are calculated.
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30, 2015.
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, 2014
('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, 2014
June 30, 2015
Discount rate 4.29%
3.80%
Long -term expected rate of return, net of investment expense N/A
N/A
Bond Buyer General Obligation 20 -Bond Municipal Bond Index 4.29%
3.80%
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30, 2015.
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. In September 2014, the Actuarial Assumptions
Conference adopted the Bond Buyer General Obligation 20 -Bond Municipal Bond Index as the applicable
municipal bond index. The discount rate used in the 2014 valuation was updated from 4.29% to 3.80 %,
reflecting the change in the Bond Buyer General Obligation 20- Bond Municipal Bond Index as of June 30,
2015.
The actuarial assumptions used to determine the total pension liability as of June 30, 2015, were
based on the results of an actuarial experience study for the period July 1, 2008 - June 30, 2013.
Valuation Date
Measurement Date
Asset Valuation Method
Discount rate (municipal bond rate)
Inflation
Salary increase including inflation
Mortality
Actuarial cost method
July 1, 2014
June 30, 2015
Fair Market Value
3.80%
2.60%
3.25%
Generational RP -2000 with Projection Scale BB
Individual Entry Age
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30, 2015.
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Sensitivity Analysis for the HIS. The following presents the net pension liability of the HIS,
calculated using the discount rate of 3.80 %, 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 (2.80 %) or one percentage point
higher (4.80 %) than the current rate.
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30, 2015.
FRS Investment Plan
The State Board of Administration 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 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 0.04% 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
The Governmental Accounting Standards Board (GASB) issued Statement No. 68, 'Accounting
and Financial Reporting for Pensions' ('GASB No. 68') — an amendment to GASB Statement No. 27,
'Accounting for Pensions by State and Local Governmental Employers', which is effective for the
County's fiscal year ended September 30, 2015. As a participating employer, the County implemented
GASB No. 68, 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 to the County will be the inclusion of
the County's proportionate share of the FRS Net Pension Liability (the 'County's Net Pension Liability'),
which will reduce the County's Unrestricted Net Position and Total Net Position. Additionally, pension
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1% Decrease
Current Discount Rate
1% Increase
2.80%
3.80%
4.80%
Total pension liability
$11,671,407,115
$10,249,201,290
$9,063,295,120
Fiduciary net position
50,774,315
50,774,315
50,774,315
Net pension liability
$11,620,632,800
$10,198,426,975
$9,012,520,805
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30, 2015.
FRS Investment Plan
The State Board of Administration 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 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 0.04% 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
The Governmental Accounting Standards Board (GASB) issued Statement No. 68, 'Accounting
and Financial Reporting for Pensions' ('GASB No. 68') — an amendment to GASB Statement No. 27,
'Accounting for Pensions by State and Local Governmental Employers', which is effective for the
County's fiscal year ended September 30, 2015. As a participating employer, the County implemented
GASB No. 68, 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 to the County will be the inclusion of
the County's proportionate share of the FRS Net Pension Liability (the 'County's Net Pension Liability'),
which will reduce the County's Unrestricted Net Position and Total Net Position. Additionally, pension
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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. As a result of the
implementation of GASB No. 68, the information contained in the County's audited financial statements
for the fiscal year ended September 30, 2014 and related notes included in Appendix B relating to pension
fund liability is not indicative of how pension fund liability will be reported by the County going
forward. It is expected that the financial reporting presentation in the 'Statement of Activities' and
'Statement of Net Position' on pages 19 through and including 21 in 'APPENDIX C — Comprehensive
Annual Financial Report for the Fiscal Year Ended September 30, 2014' attached hereto will be changing,
when compared to the Comprehensive Annual Financial Report for the Fiscal Year Ended September 30,
2015.
In particular, on the 'Statement of Net Position,' there will be a new 'Non- Current Liability'
category added called a 'Net Pension Liability' (referred to above as the County's Net Pension Liability)
that has been estimated by the County to approximate $161 million (may vary) as of September 30, 2015,
with the Water and Sewer District's proportionate share estimated to be $11.7 million (may vary). The
addition of this category is expected to contribute to a reduction in the 'Unrestricted Net Position' and
the 'Total Net Position' from $355.1 million and $2.521 billion, respectively, on September 30, 2014 to
approximately $269.7 million and $2.493 billion, respectively, on September 30, 2015. Further, on the
'Statement of Activities,' it is expected that there will be an increase in total "Governmental Activities"
Expenses and total 'Business -type Activities" Expenses from $434.5 million and $183.7 million,
respectively, on September 30, 2014 to approximately $451.7 million and $201.2 million, respectively, on
September 30, 2015.
All of these decreases are accrual based accounting changes, and do not represent decreases in
cash or liquidity positions. The County does not expect that implementation of GASB 68 will have any
effect on the County's ability to pay debt service on the Series 2016 Bonds.
Other Postemployment Benefit Plans
General
The Board of County Commissioners and the Tax Collector administer an additional single -
employer defined benefit ( "OPEB ") plan and can amend the benefit provisions. The Board offers an
OPEB Plan that subsidizes the cost of health care for its retirees who have at least 60% of eligible accrued
sick leave remaining at the time of retirement and have completed 15 years of continuous service with the
Board. In addition, the retiree must retire from the Board, be at least 55 years of age or have completed 30
years of service under the FRS and be eligible to receive an FRS benefit with no break in time. Such
employees are eligible to receive a 50% to 100% subsidy toward the cost of coverage under the active
plan. A subsidy is currently provided to fourteen retirees. The Tax Collector offers an OPEB plan that
subsidizes 100% the cost of health care for employees with 10 years of service, between the ages of 54 and
64 and who exchange 800 hours of sick leave at retirement.
of:
At October 1, 2015, the date of the latest actuarial valuation, County plan participation consisted
OPEB plan participants 2,107
Retirees receiving benefits 70
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Funding Polio
The County has the authority to establish and amend funding policy. For the year ended
September 30, 2015, the County contributed $831,869 to the OPEB Plan. No trust or agency fund has been
established for the plan.
Annual OPEB Cost and Net OPEB Obligation
The annual cost of the County's OPEB Plan is calculated based on the Annual Required
Contribution ( "ARC "), an amount actuarially determined in accordance with the parameters of GASB
Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to
cover the normal cost each year and amortize any unfunded actuarial liability over a period not to exceed
30 years. The following table shows the components of the County's annual OPEB Plan cost for the year,
the amount actually contributed, and the changes in the net OPEB Plan obligation.
Source: Collier County Comprehensive Annual Financial Report for Fiscal Year Ending September 30,
2015.
Funded Status and Funding Progress
As of the September 30, 2014 actuarial valuation date the OPEB Plan was 0.0% funded and the
actuarial accrued liability for benefits was $6,977,743, and the actuarial value of plan assets was $0,
resulting in an unfunded actuarial accrued liability ( "UAAL ") of $6,977,743. As of the September 30, 2015
actuarial valuation date the OPEB Plan was 0.0% funded and the actuarial accrued liability for benefits
was $7,178,976, and the actuarial value of plan assets was $0, resulting in a UAAL of $7,178,976. The
covered payroll (annual payroll of active employees covered by the OPEB Plan) was $160.4 million, and
the ratio of the UAAL to the covered payroll was 4.4 %.
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.
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2015
2014
2013
Annual Required Contribution (ARC)
$825,046
$816,457
$749,470
Interest on Net OPEB Obligation
25,484
25,017
19,502
Adjustment to ARC
4( 2,077)
4( 1,306)
3( 2,200)
Annual OPEB Cost
808,453
800,168
736,772
Contributions Made
(831,869)
(784,612)
(552,929)
Increase /Decrease Net OPEB Obligation
(23,416)
15,556
183,843
Net OPEB Obligation – Beginning of Year
849,469
833,913
650,070
Net OPEB Obligation – End of Year
$9260-53
4 4
$833a13
Percentage of Annual OPEB Cost Contributed
98%
98%
75%
Source: Collier County Comprehensive Annual Financial Report for Fiscal Year Ending September 30,
2015.
Funded Status and Funding Progress
As of the September 30, 2014 actuarial valuation date the OPEB Plan was 0.0% funded and the
actuarial accrued liability for benefits was $6,977,743, and the actuarial value of plan assets was $0,
resulting in an unfunded actuarial accrued liability ( "UAAL ") of $6,977,743. As of the September 30, 2015
actuarial valuation date the OPEB Plan was 0.0% funded and the actuarial accrued liability for benefits
was $7,178,976, and the actuarial value of plan assets was $0, resulting in a UAAL of $7,178,976. The
covered payroll (annual payroll of active employees covered by the OPEB Plan) was $160.4 million, and
the ratio of the UAAL to the covered payroll was 4.4 %.
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.
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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 and assumptions are:
Actuarial cost method
Amortization Method
Amortization Period
Investment Rate of Return
Discount Rate
Inflation Rate
Healthcare Cost Trend Rate
Plan Description
Projected Unit Credit Actuarial Cost
Level Dollar Amount
30 Years, Closed
3%
3%
3%
6% for the Fiscal Year 2017, grading to an ultimate rate
of 5% for the Fiscal Year 2022
The Sheriff administers a single - employer OPEB plan and can amend the benefit provisions.
Prior to 2010, the Sheriff offered an OPEB Plan that subsidizes the cost of health care 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. The Sheriff subsidizes approximately 20% for both single and family
coverage for qualifying individuals. In 2010, the subsidy was no longer made available to eligible retirees
who chose to continue their health insurance coverage. Approximately 46% of retirees receive the
subsidy. Additionally, in accordance with Florida Statute 112.0801, Sheriff's employees who retire and
immediately begin receiving benefits from the FRS have the option of paying premiums to continue in
the Sheriff's health insurance plan at the same group rate as for active employees. The plan does not
issue a separate financial report.
At September 30, 2015, the date of the latest actuarial valuation, Sheriff plan participation
consisted of:
OPEB plan participants 1,138
Retirees receiving benefits 104
Funding Policy
The Sheriff has the authority to establish and amend funding policy. For the year ended
September 30, 2015, the Sheriff contributed $742,376 to the OPEB Plan. No trust or agency fund has been
established for the plan.
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Annual OPEB Cost and Net OPEB Obligation
The annual cost of the Sheriff's OPEB Plan is calculated based on the ARC, an amount actuarially
determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of
funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize
any unfunded actuarial liability over a period not to exceed 30 years. The following table shows the
components of the Sheriff's annual OPEB Plan cost for the year, the amount actually contributed, and the
changes in the net OPEB Plan obligation.
Funded Status and Funding Progress
As of the September 30, 2014 actuarial valuation date, the OPEB Plan was 0.0% funded, the
actuarial accrued liability for benefits was $14,207,209, and the actuarial value of assets was $0, resulting
in an unfunded actuarial accrued liability ( "UAAL ") of $14,207,209. As of the September 30, 2015
actuarial valuation date, the OPEB Plan was 0.0% funded, the actuarial accrued liability for benefits was
$14,207,209, and the actuarial value of assets was $0, resulting in a UAAL of $15,133,114. The covered
payroll (annual payroll of active employees covered by the OPEB Plan) was $117.6 million, and the ratio
of the UAAL to the covered payroll was 12.9 %.
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,
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2015
2014
2013
Annual Required Contribution (ARC)
$1,262,077
$1,138,923
$1,151,695
Interest on Net OPEB Obligation
50,437
40,348
31,444
Adjustment to ARC
(83,277)
(66,618)
(51,918)
Annual OPEB Cost
1,229,237
1,112,653
1,131,221
Contributions Made
742 376
(776,332)
83( 4,442)
Increase /Decrease Net OPEB Obligation
486,861
336,321
296,779
Net OPEB Obligation — Beginning of Year
1,681,238
1,344,917
1,048,138
Net OPEB Obligation — End of Year
$Z. 8099
1 681 238
1 344 917
Percentage of Annual OPEB Cost Contributed
70%
70%
73%
Source: Collier County Comprehensive Annual Financial Report for Fiscal Year Ending
September 30,
2015.
Funded Status and Funding Progress
As of the September 30, 2014 actuarial valuation date, the OPEB Plan was 0.0% funded, the
actuarial accrued liability for benefits was $14,207,209, and the actuarial value of assets was $0, resulting
in an unfunded actuarial accrued liability ( "UAAL ") of $14,207,209. As of the September 30, 2015
actuarial valuation date, the OPEB Plan was 0.0% funded, the actuarial accrued liability for benefits was
$14,207,209, and the actuarial value of assets was $0, resulting in a UAAL of $15,133,114. The covered
payroll (annual payroll of active employees covered by the OPEB Plan) was $117.6 million, and the ratio
of the UAAL to the covered payroll was 12.9 %.
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,
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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 and assumptions are:
Actuarial cost method Projected Unit Credit Actuarial Cost
Amortization Method Level Dollar Amount
Amortization Period 30 Years, Closed
Investment Rate of Return 3%
Discount Rate 3%
Inflation Rate 3%
Healthcare Cost Trend Rate 8% for the Fiscal Year 2016, grading to an ultimate rate
of 5% for the Fiscal Year 2022
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APPENDIX B
COMPOSITE RESOLUTION
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APPENDIX C
COLLIER COUNTY AUDITED FINANCIAL STATEMENTS FOR
FISCAL YEAR ENDED SEPTEMBER 30, 2015
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APPENDIX D
FORM OF BOND COUNSEL OPINION
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APPENDIX E
FORM OF CONTINUING DISCLOSURE CERTIFICATE
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