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Resolution 2005-210 RESOLUTION NO. 2005-210 RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AMENDING AND SUPPLEMENTING A RESOLUTION ENTITLED "A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA AUTHORIZING THE ISSUANCE BY COLLIER COUNTY, FLORIDA OF $120,000,000 IN AGGREGATE PRINCIP AL AMOUNT OF COLLIER COUNTY, FLORIDA GAS TAX REVENUE BONDS, SERIES 2003 IN ORDER TO PROVIDE FUNDS FOR THE PRINCIPAL PURPOSES OF FINANCING THE COSTS OF VARIOUS TRANSPORTATION IMPROVEMENTS WITHIN THE COUNTY AND REFINANCING CERTAIN INDEBTEDNESS; PLEDGING THE MONEYS RECEIVED BY THE COUNTY FROM THE HEREIN DESCRIBED GAS TAX REVENUES TO SECURE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SAID BONDS; PROVIDING FOR THE RIGHTS OF THE HOLDERS OF SAID BONDS; PROVIDING FOR THE ISSUANCE OF ADDITIONAL BONDS; PROVIDING FOR CERTAIN ADDITIONAL MATTERS IN RESPECT TO SAID BONDS; AND PROVIDING FOR AN EFFECTIVE DATE FOR THIS RESOLUTION;" AUTHORIZING THE ISSUANCE OF THE COLLIER COUNTY, FLORIDA GAS TAX REVENUE BONDS, SERIES 2005 IN AN AGGREGATE PRINCIPAL AMOUNT OF NOT EXCEEDING $100,000,000; MAKING CERTAIN COVENANTS AND AGREEMENTS WITH RESPECT TO SAID BONDS; AUTHORIZING THE A WARDING OF SAID BONDS PURSUANT TO A PUBLIC BID; DELEGATING CERTAIN AUTHORITY TO THE CHAIR FOR THE A WARD OF THE BONDS AND THE APPROV AL OF THE TERMS AND DEI AILS OF SAID BONDS; APPOINTING THE PAYING AGENT AND REGISTRAR FOR SAID BONDS; AUTHORIZING THE DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND THE EXECUTION AND DELIVERY OF AN OFFICIAL STATEMENT WITH RESPECT THERETO; ESTABLISHING A BOOK-ENTRY SYSTEM OF REGISTRATION FOR THE BONDS; AUTHORIZING MUNICIPAL BOND INSURANCE FOR THE BONDS; AUTHORIZING A RESERVE ACCOUNT INSURANCE POLICY WITH RESPECT TO THE BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF A CONTINUING DISCLOSURE CERTIFICATE; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA: SECTION 1. FINDINGS. It is hereby found and determined that: (A) On February 25, 2003, the Board of County Cornmissioners (the "Board") of Collier County, Florida (the "Issuer") duly adopted Resolution No. 2003-89, as amended and supplemented (collectively, the "Resolution"), the title of which resolution is quoted in the title of this Supplemental Resolution, for the purposes described therein, authorizing, among other things, the issuance of $102,125,000 Collier County, Florida Gas Tax Revenue Bonds, Series 2003 (the "Series 2003 Bonds"), which Series 2003 Bonds were issued for the principal purpose of financing a portion of the costs of certain transportation improvements generally described in the Resolution. (B) The Issuer hereby determines that certain transportation capital improvements should be acquired, constructed and equipped within the Issuer in order to improve the health, safety and welfare of the inhabitants within the Issuer's geographic boundaries. Such transportation capital irnprovernents are generally described in Exhibit A hereto and are more particularly described in the records, plans and specifications on file with the Issuer (the "2005 Project"). The 2005 Project rnay be amended or supplemented from time to time by the Board without the consent of any Bondholder (as defined in the Resolution) or Insurer (as defined in the Resolution). (C) The Resolution provides for the issuance of Additional Bonds on parity with the outstanding Series 2003 Bonds for the purposes of financing the acquisition, construction and equipping of the 2005 Project upon meeting the requirernents set forth herein and in the Resolution. (D) The Issuer deems it to be in its best interest to issue its Collier County, Florida Gas Tax Revenue Bonds, Series 2005 (the "Series 2005 Bonds") for the principal purpose of financing and/or reimbursing the costs of the acquisition, construction and equipping of the 2005 Project. The Series 2005 Bonds shall be issued on parity in all respects with the Series 2003 Bonds pursuant to the terms of the Resolution. 2 (E) In accordance with Section 2 I 8.385, Florida Statutes, and pursuant to this Supplemental Resolution, the Series 2005 Bonds shall be advertised for competitive bids pursuant to the Official Notice of Sale, the form of which is attached hereto as Exhibit B (the "Official Notice of Sale"). (F) Pursuant to the Official Notice of Sale, any competitive bids received in accordance with the Official Notice of Sale on or prior to I 0:00 a.m. Eastern time, on June 7, 2005, or such other date or time as is determined by the Chair in accordance with the terms and provisions of the Official Notice of Sale, shall be publicly opened and announced. (G) It is desirable for the Issuer to be able to advertise and award the Series 2005 Bonds at the most advantageous time and date which shall be determined by the Chair; and, accordingly, the Issuer hereby determines to delegate the advertising and awarding of the Series 2005 Bonds to the Chair within the parameters described herein. (H) It is necessary and appropriate that the Board determine certain parameters for the terms and details of the Series 2005 Bonds and to delegate certain authority to the Chair for the award of the Series 2005 Bonds and the approval of the terms of the Series 2005 Bonds in accordance with the provisions hereof, of the Resolution and of the Official Notice of Sale. (I) [n the event Bond Counsel to the Issuer shall determine that the Series 2005 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 2005 Bonds in accordance with said Section 218.385, Florida Statutes. (1) The Issuer hereby certifies that it is not in default in performing any of the covenants and other provisions of the Resolution and all of the covenants and other provisions of the Resolution shall apply to the Series 2005 Bonds. (K) The Resolution provides that the Series 2005 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. (L) The Series 2005 Bonds shall not constitute a general obligation or pledge of the faith, credit or taxing power of the Issuer, the State of Florida, or any political subdivision thereof, within the meaning of any constitutional or statutory provisions. 3 Neither the Issuer, the State of Florida, nor any political subdivision thereof shall be obligated (i) to exercise its ad valorem taxing power in any form on any real or personal property of or in the Issuer to pay the principal of the Series 2005 Bonds, the interest thereon, or other costs incidental thereto, or (ii) to pay the same from any other funds of the Issuer except from the Pledged Funds, in the manner provided in the Resolution. SECTION 2. DEFINITIONS. When used in this Supplemental 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. This Supplemental Resolution is adopted pursuant to the provisions of the Act and the Resolution. SECTION 4. AUTHORIZATION OF THE 2005 PROJECT. The Issuer hereby authorizes and approves the acquisition and construction of the 2005 Project. The 2005 Project is generally described in Exhibit A attached hereto, as more particularly described in the records, plans and specifications on file with the Issuer. The 2005 Project may be subsequently amended by the Issuer from time to time. SECTION 5. DESCRIPTION OF THE SERIES 2005 BONDS. The I ssuer hereby authorizes the issuance of a Series of Bonds in the aggregate principal amount of not exceeding $100,000,000 to be known as the "Collier County, Florida Gas Tax Revenue Bonds, Series 2005" (or such other series designation as the Chair may determine), for the principal purpose of financing and/or reimbursing all or a portion of the costs of the acquisition, construction and equipping of the 2005 Project. The aggregate principal amount of the Series 2005 Bonds to be issued pursuant to the Resolution shall be determined by the Chair provided such aggregate principal amount does not exceed $100,000,000 The Series 2005 Bonds shall be dated as of their date of delivery or such other date as the Chair may determine, shall be issued in the form of fully registered Bonds in the denomination 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 June I and December I of each year (the "Interest Dates"), commencing on December I, 2005 or such other dates as may be determined by the Chair. Interest on the Series 2005 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 2005 Bonds shall be registered at the close of business on the date which shall be the fifteenth day (whether or !lot a business day) of the calendar month next preceding the applicable Interest Date, or, 4 at the request and expense of such Holder, by bank wire transfer to the account of such Holder. Principal of the Series 2005 Bonds is payable to the Holder upon presentation, when due, at the designated eorporate trust office of the Paying Agent. The principal of, redemption premium, if any, and interest on the Series 2005 Bonds are payable in lawful money of the United States of America. The Series 2005 Bonds shall bear interest at such rates and yields, shall mature on June I of each of the years and in the principal amounts corresponding to such years, and shall have such redemption provisions as determined by the Chair subject to the conditions set forth in Sections 5, 6 and 7 hereof and the provisions of the Official Notice of Sale. The final maturity of the Series 2005 Bonds shall not be later than June I, 2025. All of the terms of the Series 2005 Bonds will be included in a certificate to be executed by the Chair following the award of the Series 2005 Bonds (the "Award Certificate") and shall be set forth in the final Official Statement, as described herein. SECTION 6. A WARD OF SERIES 2005 BONDS. The Chair, on behalf of the Issuer and only in accordance with the terms hereof and of the Official Notice of Sale, shall award the Series 2005 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 2005 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 Offieial Notice of Sale; provided, however, the Series 2005 Bonds shall not be awarded to any bidder unless the true interest cost set forth in the winning bid (as calculated by the Issuer's Financial Advisor) is equal to or less than 6.00%. In accordance with the provisions of the Official Notice of Sale, the Chair may, in his sole discretion, reject any and all bids. SECTION 7. REDEMPTION PROVISIONS FOR SERIES 2005 BONDS. The Series 2005 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 Chair, in his discretion and upon the advice of the Issuer's Financial Advisor; provided, however, with respect to optional redemption terms for the Series 2005 Bonds, if any, the first optional redemption date may be no later than June 1,2015 and there shall be no call premium relating to any redemption. Terms Bonds may be established with such Amortization Installments as the Chair deems appropriate and upon the advice of the Issuer's Financial Advisor. The redemption provisions for the Series 2005 Bonds, if any, shall be set forth in the Award Certificate and in the final Official Statement. 5 SECTION 8. FULL BOOK-ENTRY. Notwithstanding the provisions set forth in Seetion 2.07 of the Resolution, the Series 2005 Bonds shall be initially issued in the form of a separate single certificated fully registered Series 2005 Bond for each of the maturities of the Series 2005 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 Scries 2005 Bonds are registered in the name of Cede & Co., all of the Outstanding Scries 2005 Bonds shall be registered in the registration books kept by the Registrar in thc name of Cede & Co., all payments of principal on the Series 2005 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 2005 Bonds, upon presentation of the Series 2005 Bonds to be paid, to the Paying Agent. With respect to Series 2005 Bonds registered in the registration books kept by the Rcgistrar 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 preeeding sentence, the Issuer, the Registrar and the Paying Agent shall iwve no responsibility or obligation with respect to (A) the aceuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest on the Series 2005 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 2005 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 2005 Bonds. The Issuer, the Registrar and the Paying Agent may treat and eonsider the Person in whose name each Series 2005 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 rcdemption and other matters with respeet to sueh Bond, for the purpose of registering tra!lsfers with respect to such Bond, and for all other purposes whatsoever. The Paying Agcnt shall pay all principal of, Redemption Price, if any, and interest on the Series 2005 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 pw\'ided 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 Pncc, if any, and interest on the Series 2005 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 Rcgistrar, shall receive a certificated Bond evidencing the obligation of the Issuer to 6 make payments of prineipal, 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 & Co." in this Supplemental Resolution shall refer to such new nominee of DTC; and upon receipt of sueh 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 2005 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 2005 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 2005 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 2005 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 2005 Bonds. SECTION 9. APPLICATION OF SERIES 2005 BOND PROCEEDS. The proceeds derived from the sale of the Series 2005 Bonds shall be applied by the Issuer as follows: (A) A sufficient amount of the Series 2005 Bond proceeds shall be applied to the payment of the premium for the hereinafter described Bond Insurance Poliey applicable to the Series 2005 Bonds, to the payment of the premium for the hereinafter described Reserve Account Insurance Policy, and to the payment of costs and expenses relating to the issuance of the Series 2005 Bonds. 7 (B) The remainder of the proceeds of the Series 2005 Bonds shall be deposited to thc "Series 2005 Account" of the Construction Fund, whieh is hereby established. \10neys in sueh Series 200S Account shall be applied to pay the Cost of the 2005 Project. SECTION 10. PRELIMINARY OFFICIAL STATEMENT. The Issuer hcrcby authorizes the distribution and use of the Preliminary Official Statement in substantially the form attached hereto as Exhibit C in connection with the offering of the Scrics 2005 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 Chair is hereby authorized to approve such insertions, changes and modifications. The Chair is hereby authorized to deem the Preliminary Official Statement "final" within the meaning of Rule 15c2-12(b)(1) under the Securities Exchange Act of 1934 in the form as mailed. Execution of a certificate by the Chair decming 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 2005 Bonds shall be substantially as set l~lI1h in the Preliminary Official Statement and shall include all of the specific financial tcrms of the Series 2005 Bonds. Subjeet in all respects to the award of the Series 2005 BO!lds in accordance with this Supplemental Resolution and the Official Notice of Sale, thc Chair is hereby authorized and directed to execute and deliver said Official Statement in the name and on behalf of the Issucr, and thereupon to cause such Official Statement to hc delivered to the Underwriters with such changes, amendments, modifications, omissions and additions as may be approved by the Chair. Said Official Statement, including any such changes, amendments, modifications, omissions and additions as approved by the Chair and the information contained therein are hereby authorized to be used in connection with the sale of the Series 2005 Bonds to the public. Execution by the Chair of the Official Statement shall be deemed to be conclusive evidence of approval of sllch changes. SECTION 12. OFFICIAL NOTICE OF SALE. The form of the Official Noticc of Sale attached hereto as Exhibit B and the terms and provisions thereof are hcrcby authorized and approved. The Chair is hereby authorized to make such changes, inscrtions and modifications as he shall deem necessary prior to the advertisement of sllch Official Notice of Sale or a summary thereof. The Chair is hereby authorized to ad\ ertise and publish the Official Notice of Sale or a summary thereof at such time as he shall deem necessary and appropriate, upon the advice of the Issuer's Financial Advisor, to accomplish the competitive sale of the Series 200S Bonds. 8 SECTION 13. APPOINTMENT OF PAYING AGENT AND REGISTRAR. Subject in all respects to the award of the Series 2005 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 2005 Bonds. The Chair and/or the Clerk or any designated Deputy Clerk are hereby authorized to enter into any agreement which may be necessary to effect the transactions contemplated by this Section 14 and by the Resolution. SECTION 14. AMENDMENT TO RESOLUTION. The definition of "Constitutional Gas Tax" set forth in Section 1.01 of the Resolution is hereby amended in its entirety to read as follows: "Constitutional Gas Tax" shall mean the two-cent fuel tax imposed pursuant to Article XII, Section 9(c), Florida Constitution, and Sections 206.41 and 206.47, Florida Statutes. This amendment is made pursuant to Section 7.01(A) of the Resolution. SECTION 15. MUNICIPAL BOND INSURANCE; RESERVE ACCOUNT INSURANCE POLICY. (A) Subject in all respects to the award of the Series 2005 Bonds in accordance with this Supplemental Resolution and the Official Notice of Sale, the Issuer hereby authorizes the payment of the principal of and interest on the Series 2005 Bonds to be insured pursuant to a financial guaranty insurance policy (the "Bond Insurance Policy") insuring the payment when due of the principal of and interest on the Series 2005 Bonds issued by Ambac Assurance Corporation ("Ambac" or the "Insurer"). The Chair and Clerk are hereby authorized to execute such documents and instruments necessary to cause the Insurer to insure the Series 2005 Bonds. With respect to the Series 2005 Bonds, Ambac shall be deemed to be an "Insurer" as such term is used and defined in the Resolution. (B) Subject in all respects to the award of the Series 2005 Bonds in accordance with this Supplemental Resolution and the Official Notice of Sale, the Issuer shall deposit to the "Series 2005 Subaccount" of the Reserve Account established pursuant to Section 17 hereof a surety bond (the "Reserve Account Insuranee Policy") issued by the Insurer guaranteeing certain payments into such Series 200S Subaccount of the Reserve Account with respect to Series 2005 Bonds as provided therein and subject to the limitations therein. The face amount of the Reserve Account Insurance Policy shall equal the Reserve Account Requirement for the Series 2005 Bonds. The Chair is hereby authorized to enter into a Guaranty Agreement substantially in the form attached hereto as Exhibit 0 (the "Guaranty Agreement") in order to cause the Insurer to issue such Reserve Account Insurance Policy. The provisions of such Guaranty Agreement, when 9 executed and delivered, shall be incorporated herein by reference and to the extent there are any conflicts between the Guaranty Agreement and the Resolution, the provisions of the Guaranty Agreement shall control. SECTION 16. PROVISIONS RELATING TO BOND INSURANCE POLICY AND RESERVE ACCOUNT INSURANCE POLICY. The commitment from Ambac to issue its Bond Insurance Policy and Reserve Account Insurance Policy with respect to the Series 2005 Bonds is hereby approved and authorized and payment for the premiums therefor is hereby authorized from proceeds of the Series 2005 Bonds. A statement of insurance is hereby authorized to be printed on or attached to the Series 2005 Bonds for the benefit and information of the Holders of the Series 2005 Bonds. Subject in all respects to the award of the Series 2005 Bonds in accordance with this Supplemental Resolution and the Official Notice of Sale, so long as the Bond Insurance Policy issued by the Insurer is in full force and effect and the Insurer has not defaulted in its payment obligations under the Bond Insurance Policy, the Issuer agrees to comply with the following provisions: (A) Notices to be given to Ambac Surveillance Department. The Issuer shall furnish to the Surveillance Department of Ambac: (i) as soon as practicable after the required state or federal filing thereof, a copy of any financial statements of the Issuer and a copy of any audit and annual report of the Issuer; (ii) a copy of any notice to be given to the Holders of the Series 2005 Bonds, including, without limitation, notice of any redemption of or defeasance of Series 2005 Bonds, and any certificate rendered pursuant to the Resolution relating to the security for the Series 2005 Bonds; (iii) to the extent that the Issuer has entered into a continuing disclosure agreement or certificate with respect to the Series 2005 Bonds, Ambac shall be ineluded as a party to be notified; and (iv) such additional information as it may reasonably request. (B) Notices to be given to Ambac General Counsel Office. The Issuer shall furnish to the General Counsel Office of Ambac: (i) notice of any failure of the Issuer to provide any relevant notices, certificates, etc.; and IO (ii) notice that there are insufficient moneys to make any payments of principal and/or interest on the Series 2005 Bonds as required by the Resolution and immediate notice of any Event of Default under the Resolution. (C) Other Information. The Issuer will permit Ambac to discuss the affairs, finances and accounts of the Issuer or any information Ambac may reasonably request regarding the security for the Series 2005 Bonds with appropriate officers of the Issuer. The Issuer will permit Ambac to have access to and to make copies of all books and records relating to the Series 2005 Bonds at any reasonable time. Ambac shall have the right to direct an accounting with respect to the Series 2005 Bonds and the security therefor at the Issuer's expense, and the Issuer's failure to comply with such direction within 30 days after receipt of written notice of the direction from Ambac shall be deemed an Event of Default under the Resolution; provided, however, that if compliance cannot occur within such period, then such period will be extended so long as compliance is begun within such period and diligently pursued, but only if such extension would not materially adversely affect the interests of any Holder of the Series 2005 Bonds. (D) Payment Procedure Pursuant to Bond Insurance Policy. The Issuer agrees to comply with the following provisions and to cause the Paying Agent for the Series 200S Bonds to comply with the following provisions: (i) At least one day prior to all interest payment dates the Issuer or the Paying Agent will determine whether there will be sufficient funds in the funds and accounts established under the Resolution to pay the principal of or interest on the Series 2005 Bonds on such interest payment date. If the Issuer or the Paying Agent determines that there will be insufficient funds in such funds or accounts, such entity shall immediately notify the other and Ambac. Such notice shall specify the amount of the anticipated deficiency, the Series 2005 Bonds to which such deficiency is applicable and whether such Series 2005 Bonds will be deficient as to principal or interest, or both. If either the Issuer or the Paying Agent has not so notified Ambac at least one day prior to an interest payment date, Ambac will make payments of principal or interest due on the Series 2005 Bonds on or before the first day next following the date on which Ambac shall have received notice of nonpayment from the Issuer or the Paying Agent. (ii) The Paying Agent or the Registrar shall, after it or the Issuer gives notice to Ambac as provided in (D)(i) above, make available to Ambac and, at Ambac's direction, to The Bank of New York in New Yprk, New York, as insurance trustee for Ambac or any successor insurance trustee (the "Insurance II Trustee"), the registration books of the Issuer maintained by the Registrar and all records relating to the funds and accounts maintained under the Resolution. (iii) The Paying Agent or the Registrar shall provide Ambac and the Insurance Trustee with a list of Holders of Series 2005 Bonds entitled to reeeive principal or interest payments from Ambac under the terms of the Bond Insurance Policy, and shall make arrangements with the Insurance Trustee (a) to mail checks or drafts to the Holders of the Series 2005 Bonds entitled to receive full or partial interest payments from Ambac and (b) to pay principal upon the Series 2005 Bonds surrendered to the Insurance Trustee by the Holders of the Series 2005 Bonds entitled to receive full or partial principal payments from Ambac. (iv) The Paying Agent shall, at the time it provides notice to Ambac pursuant to (D)(i) above, notify Holders of Series 2005 Bonds entitled to receive the payment of principal or interest thereon from Ambac (a) as to the fact of sueh entitlement, (b) that Ambac will remit to them all or a part of the interest payments next coming due upon proof of Series 2005 Bondholder entitlement to interest payments and delivery to the Insurance Trustee, in form satisfactory to the Insurance Trustee, of an appropriate assignment of the Holder's right to payment, (c) that should they be entitled to reeeive full payment of principal from Ambac, they must surrender their Series 2005 Bonds (along with an appropriate instrument of assignment in form satisfactory to the Insurance Trustee to permit ownership of such Series 2005 Bonds to be registered in the name of Ambac) for payment to the Insurance Trustee, and not the Paying Agent, and (d) that should they be entitled to receive partial payment of principal from Ambac they must surrender their Series 2005 Bonds for payment thereon first to the Paying Agent who shall note on such Series 2005 Bonds the portion of the principal paid by the Paying Agent and then, along with an appropriate instrument of assignment in form satisfactory to the Insurance Trustee, to the Insurance Trustee, which will then pay the unpaid portion of principal. (v) In the event that the Paying Agent has notice that any payment of principal of or interest on a Series 2005 Bond which has become due for payment and which is made to a Series 2005 Bondholder by or on behalf of the Issuer has been deemed a preferential transfer and theretofore recovered from its Holder pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in accordance with the final, nonappealable order of a eourt having competent jurisdiction, the Paying Agent shall, at the time Ambac is notified pursuant to (D)(i) above, notify all Holders that in the event that any Holder's payment is so recovered, such Holder will be entitled to payment from Ambac to the extent of such recovery if sufficient funds are not otherwise available, and the Paying Agent 12 shall furnish to Ambac its records evidencing the payments of principal of and interest on the Series 200S Bonds which have been made by the Paying Agent and subsequently recovered from Holders and the dates on which such payments were made. (vi) In addition to those rights granted Ambac under the Resolution, Ambac shall, to the extent it makes payment of principal of or interest on Series 2005 Bonds, become subrogated to the rights of the recipients of such payments in aecordance with the terms of the Bond Insurance Policy, and to evidence such subrogation (a) in the case of subrogation as to claims for past due interest, the Paying Agent shall note Ambac's rights as subrogee on the registration books of the Issuer maintained by the Registrar upon receipt from Ambac of proof of the payment of interest thereon to the Holders of the Series 2005 Bonds, and (b) in the case of subrogation as to claims for past due principal, the Paying Agent shall note Ambac's rights as subrogee on the registration books of the Issuer maintained by the Registrar upon surrender of the Series 2005 Bonds by the Holders thereof together with proof of the payment of principal thereof. (E) Consent of Ambac. (i) Any provision of the Resolution expressly recognizing or granting rights in or to Ambac may not be amended in any manner which affects the rights of Ambac hereunder or thereunder without the prior written consent of Ambac. (ii) Except as otherwise provided in the Resolution, Ambac's consent shall be required for the following purposes: (a) execution and delivery of any Supplemental Resolution if Series 2005 Bondholder consent is required pursuant to the Resolution; (b) removal of the Paying Agent and selection and appointment of any successor Paying Agent; and (c) initiation or approval of any action not described in (a) or (b) above which requires consent of the Series 2005 Bondholders. (iii) Any reorganization or liquidation plan with respect to the Issuer must be acceptable to Ambac. In the event of any reorganization or liquidation, Ambac shall have the right to vote on behalf of all Series 2005 Bondholders absent a default by Ambac under the Bond Insurance Policy. (iv) Anything in the Resolution to the contrary notwithstanding, upon the occurrence and continuance of an Event of Default as defined in the Resolution, Ambae shall be entitled to control and direct the enforcement of all rights and 13 remedies granted to the Series 2005 Bondholders for the benefit of the Series 200S Bondholders under the Resolution. (F) Provisions Concerning the Paving Agent. (i) The Paying Agent may be removed at any time at the request of Ambae, for any breach of the trust set forth in the Resolution. (ii) Ambac shall receive prior written notice of any Paying Agent resignation or removal. (iii) Every successor Paying Agent appointed by the Issuer shall be a trust company or bank in good standing located in or incorporated under the laws of the State, duly authorized to exercise trust powers and subject to examination by federal or state authority, having a reported capital and surplus of not less than $40,000,000 and acceptable to Ambac. Any successor Paying Agent shall not be appointed unless Ambac approves such successor in writing. (iv) Notwithstanding any other provision of the Resolution, in determining whether the rights of the Series 2005 Bondholders will be adversely affected by any action taken pursuant to the terms and provisions of the Resolution, the Issuer shall consider the effect on the Series 2005 Bondholders as if there were no Bond Insurance Policy. (v) Notwithstanding any other provision of the Resolution, no removal, resignation or termination of the Paying Agent shall take effect until a successor, acceptable to Ambac, shall be appointed. (G) Interested Parties. To the extent that the Resolution confers upon or gives or grants to Ambac any right, remedy or claim under or by reason of the Resolution, Ambac is hereby explicitly recognized as being a third-party beneficiary hereunder and thereunder and may enforce any such right, remedy or claim conferred, given or granted hereunder and thereunder. Nothing in the Resolution, expressed or implied, is intended or shall be construed to confer upon, or to give or grant to, any person or entity, other than the Issuer, the Paying Agent, the Registrar, Ambac and the Holders of the Series 200S Bonds, any right, remedy or claim under or by reason of the Resolution or any covenant, condition or stipulation hereof or thereof, and all covenants, stipulations, promises and agreements in the Resolution contained by and on behalf of the Issuer shall be for the sole and exclusive benefit of the Issuer, the Paying Agent, the Registrar, Ambac and the Holders of the Series 2005 Bonds. 14 (H) Defeasance. Notwithstanding anything herein or in the Resolution to the contrary, in the event that the principal and/or interest due on the Series 2005 Bonds shall be paid by Ambac pursuant to the Bond Insurance Policy, the Series 2005 Bonds shall remain Outstanding for all purposes, not be defeased or otherwise satisfied and not be considered paid by the Issuer, and the lien on and pledge of the Pledged Funds and all covenants, agreements and other obligations of the Issuer to the Holders shall continue to exist and shall run to the benefit of Ambac, and Ambac shall be subrogated to the rights of such Holders. (I) Security Provisions. (i) The Resolution creates a valid and binding pledge of the Pledged Funds in favor of the Holders of the Series 2005 Bonds as security for payment of the Series 2005 Bonds, enforceable by the Holders of the Series 2005 Bonds in accordance with the terms of the Resolution. (ii) The Issuer has not heretofore made a pledge of, granted a lien on or security interest in, or made an assignment or sale of the Pledged Funds that ranks on a parity with or prior to the pledge of the Pledged Funds granted by the Resolution. The Issuer shall not hereafter make or suffer to exist any pledge or assignment of, lien on, or security interest in such Pledged Funds that ranks Plior to or on a parity with the pledge of the Pledged Funds granted by the Resolution, exccpt as expressly permitted by the Resolution. (1) Hedge Agreements. So long as any Outstanding Bonds are insured by Ambac, the Issuer shall not enter into any Hedge Agreements relating to the Bonds without the written consent of Ambac. (K) Reserve Account Insurance Policv. The Issuer and Paying Agent shall do all things required by the Resolution, the Guaranty Agreement and Ambac to utilize the Reserve Account Insurance Policy in accordance with its terms. SECTION 17. RESERVE ACCOUNT. Pursuant to the proVISIOns of Section 4.05(A)(4) of the Resolution, the Issuer hereby establishes a separate subaccount in the Reserve Account for the Series 2005 Bonds whieh shall be designated as the "Series 200S Subaccount" of the Reserve Account. The Series 2005 Subaccount shall solely seeurc the Series 2005 Bonds; any moneys, investments and Reserve Account Insurance Policies in the Series 200S Subaccount shall be pledged solely to the payment of the Series 2005 Bonds. Funds and any Reserve Account Insurance Policies on deposit in the Series 2005 Subaccount shall be maintained in an amount equal to the Reserve Account Requirement for the Series 2005 Bonds. The Series 2005' Bonds shall not be 15 secured by any funds or Reserve Account Insurance Policies on deposit in the Reserve Account, other than the funds or Reserve Account Insurance Policies on deposit in the Scries 2005 Subaccount. Initially, the Series 2005 Subaccount shall be funded by a Rcserve Account Insurance Policy issued by the Insurer with a face amount equal to the Reserve Aecount Requirement for the Series 2005 Bonds. SECTION 18. SECONDARY MARKET DISCLOSURE. Subject in all respects to the award of the Series 2005 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 Certificate to be executed by the Issuer and dated the date of delivery of the Series 2005 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 E with such changes, amendments, modifications, omissions and additions as shall be approved by the Chair who is hereby authorized to execute and deliver such Certificate. Notwithstanding any other provision of the Resolution, failure of the Issuer 10 comply with such Continuing Disclosure Certificate shall not be considered an Event of Default under the Resolution; provided, however, any Series 2005 Bondholder may takc 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 undcr this Section 17 and the Continuing Disclosure Certificate. For purposes of this Scction 17, "Series 2005 Bondholder" shall mean any Person who (A) has the power, dircctly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Series 2005 Bonds (including persons holding Series 2005 Bonds through nominees, depositories or other intermediaries), or (B) is treated as the owner of any Series 2005 Bonds for federal income tax purposes. SECTION 19. GENERAL AUTHORITY. The members of the Board, the Clcrk 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 Rcsolution, the Official Statement, the Continuing Disclosure Certificate or the Guaranty Agrccment or desirable or consistent with the requirements hereof or the Resolution, the Official Statement, the Continuing Disclosure Certificate or the Guaranty Agreement for thc full punctual and complete performance of all the terms, covenants and agreements contained herein or in the Series 2005 Bonds, the Resolution, the Official Statement, the Continuing Disclosure Certificate, and the Guaranty Agreement and each member, employee, attorney and officer of the Issuer or the Board and the Clerk is hereby authorized and direeted to execute and deliver any and all papers and instruments and to 16 do and cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated hereunder. If the Chair is unavailable or unable at any time to perform any duties or functions hereunder, including but not limited to those described in Sections 5, 6 and 7 hereof, the Vice-Chair is hereby authorized to act on his or her behal f. SECTION 20. 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 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 2005 Bonds. SECTION 21. RESOLUTION NO. 03-247. This Supplemental Resolution shall supersede and replace the provisions of Sections 1,4,5,6,8,9 and 10 of Resolution No. 03-247 adopted on July 29, 2003. The remaining Sections of said Resolution No. 03- 247 shall remain in full force and effect. SECTION 22. 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. 17 SECTION 23. EFFECTIVE DATE. This Supplemental Resolution shall become effective immediately upon. its adoption. DUL Y ADOPTED, in Regular Session this 24th day of May, 200S. (SEAL) BOARD OF COUNTY COMMISSIONERS OFCOI~~T:;FA Chair "'" ATTEST: , . . . . . . ':, <i.~.'..' -';.~':,:>t' .. . ...' . ,;1' ._ ..-;.... /p/l/1) lJ. f/m~&I>;~Vjt; " " . / "'. 'y. -....... : Clerk Att4IIt:.. to-'elI..'s atflld>>rt. ..li~;';" APPROVErJ ASTItPORM AND LEGAL SUFFICIENCY: County Attorney 18 EXHIBIT A DESCRIPTION OF 2005 PROJECTS Transportation Capital Proiects Collier Boulevard (Davis to US41) 13th Street Bridge Immokalee Rd, CR951143'd Ave NE Coconut Creek Estates East/West Livingston Rd, US411Livingston Livingston Rd, GGP/PRR Planning Consultants Goodlette Rd, 4 lane PRRlVBR Logan Blvd PRR - Immk VBR (Collier-Wilson Blvd) Rattlesnake Polly to CR 95 I Traffic Signals Airport Road Median North II th Street Livingston Rd PRRlImmk (CR862-CR896) GG Blvd CR951 to Wilson Blvd Radio Rd Santa Barbara/SR84 Radio Road Livingston to SBB CR95l Golden Gate Blvd - Immk Rd Immokalee Rd US411I-75 Bridge Structures 13th Street Improvements Airport Rd & Enterprise Ave Intersection Collier Blvd (Davis S - US41) Santa Barbara (Davis - Rattlesnake) Vanderbilt Drive (Wiggins - BBR) Collier Blvd (GBB to Green) Davis Intersection Improvements Wilson Blvd (Immk - GGB) Collier Blvd (Davis - GGPKWY) GGPKWY (US41-Goodlette Rd) Randall Blvd SR 82 Lee Cnty Line to SR 29 Oil Well (Everglades to E. Desoto) Goodlette Frk (PRR-GGPKWY) Minor Turnlanes Immk Master Mitg. GGPKWY, 6 lane Airport/Santa Bar Whippoorwill Lane Ph I County Barn Road Pine Ridge Road Imm RdlOil Well to SR29 Livingston Road Extension VBR (Wilson - Desoto) Advanced ROW Major Reconstruction/Resurfacing Master Mitigation Airport Rd - CR 896 to VBR Santa Barbara 6 Lane Davis/PRR Vanderbilt Bch Airport to CR 951 Radio Rd Airport to LiVIngston Rd Livingston Road North (Immk - Lee Cnty Line) Vanderbilt Beach Road Tumlane Construction Golden Gate Pkwy (Goodlette - CR31) Immokalee Rd I75-CR 951 CR951 Monitoring Collector/Minor Arterial Roads Goodlette Fr Rd (VBR - Immk) Green Blvd Ext (Liv - SBB) Green Blvd (Sunshine - SBB) Pine Ridge Rd (Logan - Collier) Golden Gate Blvd (Wilson - Desoto) Golden Gate Estates E/W Cdr Study CR951 Extension (Immk - BBR) Everglades (Oil Well to GGB) Oil Well (Immk - Everglades Blvd) Oil Well (E Desoto - Camp Keis) EXHIBIT B FORM OF OFFICIAL NOTICE OF SALE OFFICIAL NOTICE OF SALE $100,000,000* Collier County, Florida Gas Tax Revenue Bonds, Series 2005 Electronic Bids, as Described Herein Will Be Accepted Until 10:00 a.m., Eastern Daylight Savings Time, June 7, 2005* * Preliminary, subject to change. Collier CQlIll~r. Florida - Gas Tax Rl'l'l'IIt1e BOllils. Series 2005 -- Official Notice o(.foiate Page { OFFICIAL NOTICE OF SALE . $] 00,000,000* Collier County, Florida Gas Tax Revenue Bonds, Series 2005 NOTICE IS HEREBY GIVEN that electronic bids will be received in the manner, on the date and up to the time specified below: DA TE: Tuesday, June 7, 2005* TIME: 10:00 A.M. Eastern Daylight Savings Time* ELECTRONIC BIDS: May be submitted only through Bidcomp/Parity Competitive Bidding System ( "PARITY") 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, Collier County Government Complex, 3301 East Tamiami Trail, Building F Naples, Florida 34112, for the purchase of all, but not less than all, of the $100,000,000* Collier County, Florida Gas Tax Revenue Bonds, Series 2005 (the "Bonds") to be issued by Collier County, Florida (the "County") pursuant to the terms and conditions of Resolution No. 2003-89 adopted by the Board of County Commissioners (the "Board") of the County on February 25, 2003, as amended and supplemented from time to time, and as particularly amended and supplemented by a resolution adopted by the Board on May 24,2005 (collectively, the "Bond Resolution"). Such bids will be opened in public in accordance with applicable legal requirements. The Bond proceeds will be used to (i) finance the costs of various transportation capital improvements within the County and (ii) pay certain costs of issuance of the Bonds, including the premiums for municipal bond insurance and reserve account Illsurance. The Bonds are more particularly described in the Preliminary Official Statement dated [June 2, 2005) (the "Preliminary Official Statement") relating to the Bonds, available at I-Deal, LLC's website, www.i-dealprospectus.com.This Official Notice of Sale contains certain information for quick reference only. It is not, and is not intended to bc. 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. Collia COlll/fy, Florida - Gas Tax Rt>\!t!lIllt! BOllds. Series 1005 - Official Notice of Sale PUKe 2 Prior to accepting bids, the County reserves the right to change the principal amount of the Bonds being offered and the terms of the Bonds, to postpone the sale to a later date or time, or cancel the sale. Notice of a change or cancellation will be announced via The Bond Buyer news service at the internet website address www.tm3.com. not later than Noon, Eastern Daylight Savings Time, on the day preceding the bid opening or as soon as practicable. Such notice will specify the revised principal amount or terms, if any, and any later date or time selected for the sale, which may be postponed or cancelled in the same manner. If the sale is postponed, a later public sale may be held at the hour, in the manner, and on such date as communicated upon at least twenty-four (24) hours notice via The Bond Buyer news service at the internet website address www.tm3.com. The County reserves the right, after the bids are opened, to adjust the principal amount of the Bonds, as further described herein. See "ADJUSTMENT OF AMOUNTS AND MATURITIES." To the extent any instructions or directions set forth in PARITY conflict with this Official Notice of Sale, the terms of this Official Notice of Sale shall control. For further information about PARITY and to subscribe in advance of the bid, potential bidders may contact PARITY at (212) 849-5021. Each prospective eleetronic bidder must be a subscriber to PARITY. Each qualified prospective electronic bidder shall be solely responsible to make necessary arrangements to view the bid form on PARITY and to access PARITY for the purposes of submitting its bid in a timely manner and in compliance with the requirements of the Official Notice of Sale. Neither the County nor PARITY shall have any duty or obligation to provide or assure aceess to PARITY to any prospective bidder, and neither the County nor PARITY 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, PARITY. The County is using PARITY as a communication mechanism, and not as the County's agent, to conduct the electronic bidding for the Bonds. The County is not bound by any advice and determination of PARITY to the effect that any particular bid complies with the terms of this Official Notice of Sale and, in partieular, the bid specifications hereinafter set forth. All costs and expenses incurred by prospective bidders in connection with their registration and submission of bids via PARITY are the sole responsibility of such bidders and the County shall not be responsible, directly or indirectly, for any such costs or expenses. If a prospective bidder encounters any difficulty in submitting, modifying or withdrawing a bid for the Bonds, the prospective bidder should immediately telephone PARITY at 212-849-S021 and notify the County's Financial Advisor, Public Financial Management, Inc., at 239-939-3009. The County shall have no responsibility for technological or transmission errors that any bidder may experience in transmitting a bid. The use of PARITY shall be at the bidder's risk and expense, and the County shall have no liability with respect thereto. Collier COlfll1}'. Floritfll- Gas Tax Revenue BOllds. Series 1005 - Official Notice of Sale Page 3 THE BONDS The Bonds will be issued in fully registered, book-entry only form, without coupons, will be dated as of their date of delivery (currently anticipated to be June 29, 200S), will be issued in denominations of $5,000 or integral multiples thereof, will bear interest from their dated date until paid at the annual rate or rates specified by the successful bidder, subject to the limitations specified below, payable as shown on the Summary Table set forth herein. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds must meet the minimum and maximum coupon and reoffering price criteria shown in the Summary Table on a maturity and aggregate basis. The Bonds will mature on the dates, in the years and principal amounts shown on the Summary Table as serial bonds except as otherwise adjusted as described herein. STRUCTURE Any two to four consecutive maturities of the Bonds maturing on or after June 1, 2016 bearing interest at the same rate may be combined into up to four term bonds with mandatory sinking fund installments equal to the amounts specified in the Official Notice of Sale for the years combined to form a term bond. OPTIONAL REDEMPTION The Bonds maturing prior to June 1,2016 are not subject to optional redemption prior to maturity. The Bonds maturing on and after June I, 2016 are subject to redemption in whole or in part, at any time, on or after June I, 2015, in such order of maturities as may be determined by the County (less than all of a single maturity to be selected by lot), at a redemption price equal to 100% of the principal amount of the Bonds to be redeemed plus accrued interest to the date fixed for redemption. SECURITY Bonds will be payable from and will be secured by, on a parity with the County's Gas Tax Revenue Bonds, Series 2003 (the "Series 2003 Bonds"), outstanding in the principal amount of $89,55S,000 as of June 2, 2005, and any Additional Bonds (as detined in the Resolution) subsequently issued pursuant to the Bond Resolution (collectively, the "Parity Bonds"). The Bonds and the Parity Bonds are secured by a pledge of and lien upon the Pledged Funds (as defined in the Bond Resolution) which include the Gas Tax Revenues (as defined in the Bond Resolution), all as described in the Prcliminary Official Statement. Collier COUllfJ', Florida - Gas Tax Rel'eJlltt! Bouds. Series 1005 - Offidal Notice of Sa/I! PQ~e 4 Summary Table If numencal 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 Su~ary Table, including interpretation of such items and methodologies used to detennine such items. Prospective purchasers of the bonds must read the entire Official Notice of Sale and the entire Preliminary Official Statement. Terms of the Bonds Dated Date Anticipated Delivery Date Interest Payment Dates Principal Payment Dates (June I): Year 2006 2007 2008 2009 2010 2011 2012 Princioal Amount* $ 30,000 835,000 860,000 885,000 910,000 1,880,000 1.940,000 Interest Calculation Ratings: Biddine: Parameters Sale Date Bidding Method All or none vs. Maturity-by-Maturity Bid A ward Method Bid Confirmation Bid A ward Good Faith Deposit Coupon Multiples Maximum Coupon Minimum Coupon Optional Redemption Term Bonds Maximum Reoffering Price: Minimum Reoffering Price: Insurance Year 2013 2014 2015 2016** 2017** 2018** 2019** Moody's S&P Fitch Maturity Aggregate Maturity Aggregate Date of Delivery June 29, 2005* June I and December I, commencing December 1,2005 Princioal Amount* $2,010,000 2,080,000 2,155,000 6,470,000 6,715,000 6,980,000 7,255,000 Year 2020** 2021** 2022** 2023** 2024** 2025** Princioal Amount* $ 7,545,000 7,845,000 8, t 70,000 8,510,000 13,180,000 13,745,000 360-day year of twelve 30-day months A2 A A+ June 7, 2005* PARITY All-or-none Lowest true interest cost Fax signed Official Confirmation of Bid Form As soon as practicable on day of sale $ I 00.000,000; Surety bond required prior to bid 1/8 or 1/20 of 1 % 5.25% None Yes, on or after June 1,2015 Yes, at bidder's option. See "STRUCTURE" herein. Unlimited Unlimited 98,0% 99.0% Yes. all maturities, by Ambac Assurance Corporation; premium to be paid by the County Principal Increases: Adjustment Parameters (As required to optimize funding of projects) Principal Reductions: Maturity Aggregate Maturity Aggregate Unlimited 10.0% Unlimited IO.OIX, * Preliminary, subject to change. ** May be combined mto lip to four term bonds. See "STRUCTURE" herein. Collier COllllt}', florida ~ Gtl.'\ F(L\: Rel'elllle 8011t1s. Series 2005 - Official Notice of Sale Page 5 ADJUSTMENT OF AMOUNT AND MATURITIES The aggregate principal amount of each maturity of Bonds is subject to adjustment by the County after the receipt and' opening of the bids for their purchase. Changes to be made after the opening of the bids will be communicated to the successful bidder directly prior to 8:00 a.m., Eastern Daylight Savings Time on the date following the sale date. The County may cancel the sale of the Bonds or adjust the aggregate principal amount. The County may increase or decrease the principal amount of the Bonds or any maturity thereof by no more than the individual maturity or aggregate principal percentages, if any, shown in the Summary Table. The County will consult with the successful bidder before adjusting the amount of any maturity of the Bonds or canceling the Bonds; however, the County reserves the sole right to make adjustments, within the limits described above, or cancel the sale of the Bonds. Adjustment to the size of the Bonds within the limits described above does not relieve the purchaser from its obligation to purchase all of the Bonds offered by the County. Each bid must specify the initial reoffering prices to the public of each maturity of Bonds. Adjustments may be made to the principal amounts based on the reoffering prices shown on PARITY. In determining whether there will be any revision to the principal amount of or maturity of the Bonds subsequent to the bid opening and award, the County expeets that changes may be made that are necessary to increase or decrease the principal amount of the Bonds to meet the County's project 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, Ncw 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 partieipants. The successful bidder, as a condition to delivery of the Bonds, will be required to deposit the Bond certificates with DTC or the Rcgistrar (as defined below), registered in the name of Cede & Co. Principal of, Collier COUllty, Florida - Ga!'.. Tax Re~'ellue Bonds. Series 2005 - Official Notice ofSa/e Page 6 premium, if any, and interest on the Bonds will be payable by U.S. Bank, National Association, the paying agent and registrar (the "Registrar") for the Bonds by wire transfer or in clearinghouse funds. to DTC or its nominee as registered owner of the Bonds. Transfer of principal, premium, if any, and interest payments to the beneficial owners by participants of DTC will be the responsibility of such participants and other nominees of beneficial owners. Neither the County nor the Registrar will be responsible or liable for payments by DTC to its participants or by DTC participants to beneficial owners or for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants. Principal of, and premium, if any, on the Bonds will be payable on surrender thereof at the principal office of the Registrar on the dates, in the years and amounts established in accordance with the award of the Bonds. Interest on the Bonds is payable on the dates shown in the Summary Table. The Registrar will mail interest payments on the Bonds on each interest payment date to the owners of the Bonds at the addresses listed on the registration books maintained by the Registrar for such purpose on 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 to DTC or its nominee. PRELIMINARY OFFICIAL STATEMENT AND FINAL OFFICIAL STATEMENT The County has authorized the preparation and distribution of a Preliminary Offieial Statement containing information relating to the Bonds. The Preliminary Official Statement has been deemed final by the County as required by Rule 15c2-12 of the Securities and Exchange Commission. The County will furnish the successful bidder on the date of closing, with its certificate as to the completeness and accuracy of the Official Statement. The Preliminary Official Statement and this Official Notice of Sale and any other information concerning the proposed financing will be available electronically at I-Deal, LLC's website, www.i-dealprospectus.com. Assistance in obtaining the documents will be provided by I-Deal, LLC customer service at 212-849-5021 or from Public Financial Management, Inc., Financial Advisor to the County, 13350 Metro Parkway, Suite 302, Fort Myers, FL 33912, Phone 239-939-3009, Fax 239-939-1220 or email sheltonl@pfm.com. The Preliminary Official Statement, when amended to reflect the actual amount of the Bonds sold, the interest rates specified by the successful bidder and the price or yield at which the successful bidder will reoffer the Bonds to the public, together with any other information required by law, will constitute a final "Official Statement" with respect to the Bonds as that term is defined in Rule 15c2-12. No more than seven Collier COUltt)" Florida - Gas Tax Revellue Bouds. Series 2005 - Official Notice of Sale Page 7 business days after the date of the sale, the County will provide without cost to the respective successful bidder up to 200 copies of the Official Statement. If the Bonds are awarded to a syndicate, the County. will designate the senior managing underwriter of the syndicate as its agent for purposes of distributing copies of the Official Statement to each participating underwriter. Any underwriter submitting a bid with respect to the Bonds agrees thereby that if its bid is accepted, it shall accept such designation and shall enter into a contractual relationship with all participating underwriters for the purpose of assuring the receipt and distribution by each participating underwriter of the Official Statement. LEGAL OPINIONS The Bonds will be sold subject to the opinion of Nabors, Giblin & Nickerson, P.A., the County's Bond Counsel, as to the legality thereof and such opinion will be furnished without cost to the purchaser and all bids will be so conditioned. A form of Bond Counsel's opinion is attached to the Preliminary Official Statement as Appendix E. Certain matters will be passed on for the County by David C. Weigel, Esq., County Attorney and Bryant Miller & Olive P.A., the County's Disclosure Counsel. A legal opinion (or reliance letter thereon) of Bryant Miller & Olive P.A., Tampa, Florida, Disclosure Counsel, and a legal opinion of David C. Weigel, 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 PARITY will be accepted. No other provider of electronic bidding services will be accepted. No bid delivered in person or by facsimile directly to the County will be accepted. Bidders are permitted to submit bids for the Bonds during the bidding time period, provided they are eligible to bid as described under "GENERAL" above. Each electronic bid submitted via PARITY shall be deemed an irrevocable offer in response to this Official Notice of Sale and shall be binding upon the bidder as if made by a signed, sealed bid delivered to the County. All bids remain firm until an award is made. The successful bidder must confirm the details of such bid by a signed Official Confirmation of Bid Form delivered by fax to Public Financial Management, Inc. at 239- 939-1220 no later than one hour after being notified by the County of being the winning bidder, the original of which must be received by Public Financial Management, Inc., Finaneial Advisor to the County on the following business day at 13350 Metro Parkway, Suite 302, Fort Myers, FL 33912. Failure to deliver does not relieve the bidder of the obligation to purchase the Bonds. Collier Cou"t)'. Florida - Gas Tax Revellue BOllds. Series 1005 - Official Notice of Sale PQ1:e8 FORM OF BID Bidders must bid to purcha~e all maturities of the Bonds. Each bid must specify (I) 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 (I) 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 118 or 1120 of 1 %. Any number of interest rates may be named, but the Bonds of each maturity must bear interest at the same single rate for all bonds of that maturity. Each bid for the Bonds must meet the minimum and maximum coupon criteria and minimum and maximum reoffering price criteria shown in the Summary Table on a maturity and aggregate basis. Each bidder must specify, as part of its bid, the prices or yields at which a substantial amount (i.e., at least 10%) of the Bonds of each maturity will be offered and sold to the public. Reoffering prices presented as a part of the bids will not be used in computing the bidder's true interest cost. As promptly as reasonably possible after bids are received, the County will notify the successful bidder that it is the apparent winner. MUNICIPAL BOND INSURANCE The County has received a commitment from Ambac Assurance Corporation of its intent to issue a municipal bond insurance policy insuring payment of principal and interest on the Bonds, when due. The cost of municipal bond insurance will be paid by the County. Information regarding the bond insurance commitment may be obtained from the Public Financial Management, Inc., Financial Advisor to the County, 13350 Metro Parkway, Suite 302, Fort Myers, FL 33912, 239-939-3009, sheltonl@pfm.com. AWARD OF BID The County expects to award the Bonds to the winning bidder as soon as practicable after the bids are opened on the sale date. Bids may not be withdrawn prior to the award. Unless all bids are rejected, the Bonds will be awarded by the County on the sale date to the bidder whose bid complies with this Official Notice of Sale and results in the lowest True Interest Cost ("TIC") to the County. The lowest TIC will be determined by doubling the semi-annual interest rate, compounded semi-annually, necessary to discount the debt service payments from the payment dates to the dated date of the Bonds and to the aggregate purchase price of the Bonds. If two or more responsible bidders offer to purchase the Bonds at the same lowest TIC, the County will award the Bonds to one of such bidders by lot. Only the final bid submitted by any bidder through PARITY will be Collier County, Florida - Gas Tax Revenue Bonds, Series 2005 - Official Notice o/Sale Page 9 considered. The right reserved to the County shall be final and binding upon all bidders with respect to the form and adequacy of any proposal received and as in its conformity to the terms of this Official Notice of Sale. RIGHT OF REJECTION The County reserves the right, in its discretion, to reject any and all bids and to waive irregularity or informality in any bid. DELIVERY AND PAYMENT Delivery of the Bonds will be made by the County to DTC in book-entry only form, in New York, New York on or about the delivery date shown in the Summary Table, or such other date agreed upon by the County and the successful bidder. Payment for the Bonds must be made in Federal Funds or other funds immediately available to the County at the time of delivery of the Bonds. Any expenses incurred in providing immediate funds, whether by transfer of Federal Funds or otherwise, will be borne by the purchaser. The County intends to conduct the closing in Naples, Florida. RIGHT OF CANCELLATION The successful bidder will have the right, at its option, to cancel its obligation to purchase the Bonds if the Registrar fails to authenticate the Bonds and tender the same for delivery within 60 days from the date of sale thereof, and in such event the successful biddcr will be entitled to the return of the Good Faith Deposit accompanying its bid. GOOD FAITH DEPOSIT Each bid for the purchase of the Bonds must be accompanied by a financial surety bond which guarantees payment to the County of the Good Faith Deposit amount shown in the Summary Table to secure the County against any loss resulting from a failure of thc suecessful bidder to take up and pay for the Bonds in accordance with the terms of this Official Notice of Sale and of their bids. Each financial surety bond must be from an insurance company aeceptable to the County and licensed to issue such a bond in the State of Florida. Each financial surety bond must be submitted to Public Financial Management, Inc., Financial Advisor to the County, 13350 Metro Parkway, Suite 302, Fort Myers, FL 33912, or by facsimile to 239-939-1220, prior to the time bids are rcquired to be submitted and must be in form and substance acceptable to the County. Each financial surety bond must identify each bidder whose deposit is guaranteed by such tlnancial surety bond. The successful bidder for the Bonds is required to submit its Good Faith Deposit to the County in the form of a wire transfer in federal funds not later than 12:30 p.m., [astCIl1 Daylight Savings Time, on the next business day following the award. If such {'oilier CoumJ'. Floridtl- Gas Ttu: Revenue BOllds. Serie!.'i 2005 - Official Notice of Sale Page 10 deposit is not received by that time, the relevant financial surety bond will be drawn upon by the County to satisfy the deposit requirement. The Good Faith Deposit so wired will be retained by the County until the delivery of such Bonds, at which time the good faith deposit will be applied against the purchase price of such Bonds or the good faith deposit will be retained by the County as partial liquidated damages in the event of the failure of the successful bidder to take up and pay for such Bonds in compliance with the terms of the Official Notice of Sale and of its bid. The County will pay no interest on the good faith deposit. The balance of the purchase price must be wired in federal funds to the account detailed in the closing memorandum provided by the County to the successful purchaser, simultaneously with delivery of such Bonds. CUSIP NUMBERS It is anticipated that CUSIP numbers will be printed on the Bonds, but neither failure to print such numbers on any Bonds nor any error with respect thereto will constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for the Bonds. Bond Counsel will not review or express any opinion as to the correctness of such CUSIP numbers. The policies of the CUSIP Service Bureau will govern the assignment of specific numbers to the Bonds. The successful bidder will be responsible for applying for and obtaining CUSIP numbers for the Bonds. All expenses in relation to the printing of CUSIP numbers on the Bonds will be paid for by the County; provided, however, that the CUSIP Service Bureau charge for the assignment of said numbers will be the responsibility of and will be paid for by the successful bidder. BLUE SKY The County has not undertaken to register the Bonds under the securities laws of any state, nor investigated the eligibility of any institution or person to purchase or participate in the underwriting of the Bonds under any applicable legal investment, insurance, banking or other laws. By submitting a bid for the Bonds, the successful bidder represents that the sale of the Bonds in states other than Florida will be made only under exemptions from registration or, wherever necessary, the successful bidder will register the Bonds in accordance with the securities laws of the state in which the Bonds are offered or sold. The County agrees to cooperate with the successful bidder, at the bidder's written request and expense, in registering the Bonds or obtaining an exemption from registration in any state where such action is necessary; provided, however, that the County shall not be required to consent to suit or to service of process in any jurisdiction. DISCLOSURE OBLIGATIONS OF THE PURCHASER Section 2 I 8.38( 1 )(b )(2), Florida Statutes, requires that the successful purchaser file a statement with the County containing information with respect to any fee, bonus or Collier Count)'. Florida - Gas Tax Reveuue BOllds. Series 2005 - Official Notice of Sale PaKe II 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 (I) 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 thc Bonds in accordance with Seetion 218.386, Florida Statutes. The successful purchaser will be required to submit to the County prior to closing a certification to the effect that (i) all of the Bonds have been subject of a bona fide initial offering to the public (excluding bond houses, brokers or similar persons or organizations acting in the capacity of underwriters or wholesalers) at prices no higher than those shown on the 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 pub lie (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 eover of the Official Statement, and (iii) at the timc 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 cover of the Official Statement. CONTINUING DISCLOSURE The County has covenanted to provide ongoing disclosure in accordance with Rule 15c2-12 of the Securities and Exchange Commission. The specific nature of the information to be contained in the annual report and the notices of material events are set forth in the Continuing Disclosure Certificate which is reproduced in its entirety in Appendix F attached to the Preliminary Official Statement for the Bonds. The covenants havc been undertaken by the County in order to assist the successful purchaser in complying with clause (b) (5) of Rule 15c2-12 of the Securities and Exchange Commission. CERTIFICATE The County will deliver to the purchaser of the Bonds a certificate of an official of the County, dated the date of delivery of said Bonds, stating that as of the date thereof, to thc best of the knowledge and belief of said official, the Official Statement does not contain an untme statement of a material fact or omit to state any material fact neeessary 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 matcrial adverse change in the financial condition of the County. The County shall t"ul11ish at its expense within seven (7) business days after the Bonds have been awarded ('oilier ComtfJ', Florida - Ga.~ Tax Rel'emle Boud.\'. Sail'S 2005 - Official Notice of Sale Page /1 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. CHOICE OF LAW Any litigation or claim arising out of any bid submitted (regardless of the means of submission) pursuant to this Official Notice of Sale shall be governed by and construed in accordance with the laws of the State of Florida. The venue situs for any such action shall be the state courts of the Twentieth Judicial Circuit in and for Collier County, Florida. NOTICE OF BIDDERS REGARDING PUBLIC ENTITY CRIMES A person or affiliate who has been placed on the Convicted Vendor List (as described in Florida Statutes) following a conviction for a public entity crime may not submit a bid. COLLIER COUNTY, FLORIDA Dated: [June 2, 2005] By: Isl Fred W. Covle Chair, Board of County Commissioners of Collier County, Florida Collier COllIltJ. Fforida- (ias Tax Rel'(!flUe Bo"d,~. Series ](J()5 - Official Notice of Sale Page 13 EXHIBIT A TRUTH-IN-BONDING STATEMENT June 7, 2005 Board of County Commissioners Collier County, Florida Re: Collier County, Florida Gas Tax Revenue Bonds, Series 2005 Dear Commissioners: The purpose of the following two paragraphs is to furnish, pursuant to the provisions of Sections 218.385(2) and (3), Florida Statutes, as amended, the truth-in- bonding statement required thereby, as follows: (a) The County is proposing to issue $ principal amount of the above-referenced Bonds for the principal purposes of (i) financing the costs of various transportation capital improvements within the county (ii) to pay certain costs of issuance of the Series 2005 Bonds, including the municipal bond insurance premium and the reserve account insurance policy premium. 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 limited obligations of the County. The principal source of repayment or security for the Bonds is certain gas tax revenues received by the County (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 serviee on the Bonds each year for years. The foregoing is provided for information purposes only and shall not affect or control the actual terms and conditions of the Bonds. Very truly yours, Underwriter By: Authorized Signatory ( "ilia (()lm~r. Florida - Ga.~ TiLl( Revenue Bont/s. Series 1005 - Official Notice olSale PUKe 1.J OFFICIAL CONFIRMATION OF BID FORM . $100,000,000* Collier County, Florida Gas Tax Revenue Bonds, Series 2005 The undersigned hereby offer to purchase all of the Collier County, Florida Gas Tax Revenue Bonds, Series 2005 (the "Series 2005 Bonds"), to be dated as of the date of delivery (expected to be June 29, 2005), described in the attached Official Notice of Sale and the Preliminary Official Statement referred to therein, which by reference is made part of this bid, for all but not less than all of said Series 2005 Bonds and will pay therefor, at the time of delivery, in immediately available Federal Reserve Funds Dollars ($ ), bearing interest at the following rates per annum: Year (June 1) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016** 2017** 2018** 2019** 2020** 2021** 2022** 2023** 2024** 2025** Principal* Amount Interest Rate Reoffering Price or Yield $ 30,000 835,000 860,000 885,000 910,000 1,880,000 l,940,000 2,010,000 2,080,000 2,155,000 6,470,000 6,715,000 6,980,000 7,255,000 7,545,000 7,845,000 8,170,000 8,510,000 13,180,000 13,745,000 * Preliminary, subject to change. ** May be combined into up to four term bonds. See "STRUCTURE" herein. Collier County. Floritlll- (ias Tax Ret'elttle BOIlt/s. Series 2005.~ Official Notice ofSah> Page 15 Any two to four consecutive maturities of the Series 2005 Bonds maturing on or after June I, 2016 bearing interest at the same rate may be combined into up to four term bonds with mandatory sinking fund installments equal to the amounts specified in the Ot1lcial Notice of Sale for the years combined to form a term bond. The principal installments for the Series 2005 Bonds indicated on the previous page shall be applied for the mandatory retirement of up to four Term Bonds maturing in thc years and amounts and bearing interest as follows: S Term Bonds maturing on October I, _at _% per annum to yield _% per annum S Term Bonds maturing on October I , _at _ % per annum to yield _ % per annum S Term Bonds maturing on October I, _at _% per annum to yield _% per annum S Term Bonds maturing on October 1, _at _% per annum to yield _% per annum GOOD FAITH DEPOSIT In accordance with the attached Official Notice of Sale, we are the authorized principal ofa Financial Surety Bond in the amount of One Million Dollars ($1,000,000) with respect to this bid as described in the attached Official Notice of Sale. MISCELLANOUS This proposal is not subject to any conditions not expressly stated herein or in the attached Official Notice of Sale. Receipt and review of the Preliminary Official Statement relating to the Series 2005 Bonds is hereby acknowledged. The names of the undcrwriters or member of the aecount 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 Ot1lcial Confirmation of Bid Form the Truth in Bonding Statement which is attached to the Official Notice of Sale as Exhibit A. The County reserves the right to assist the bidder in correcting any inconsistencies or inaccuracies set forth in such Truth in Bonding Statement. The County may waive any inconsistencies or inaccuracies relating Coilil'r CoulI(l'. Florida - Gas Tax Rel'ellUf? BOllds. Series 2005 - Official Notice of Sale PaKe /6 to such Statements and any such waived inconsistencies or inaccuracies shall not adversely affect the bid. Furthermore, pursuant to Section 218.386, Florida Statutes, the names, addresses and estimated amounts of compensation of any person who has entered into an understanding with the underwriters or, to the managing underwriter's knowledge, the County, or both, for any paid or promised compensation or valuable consideration, direetly or indirectly, expressly or implied, to act solely as an intermediary between the County and managing underwriter or who exercises or attempts to exercise any influence to effect any transaction in the purchase of the Series 2005 Bonds are set forth below in the space provided. If no information is provided below, the County shall presume no compensation was or will be paid. Senior Manager: Address Authorized Signature: City State Zip Code Printed Name: Telephone Number Facsimile Number Collier COllllt)', Florida -- Gas Tax Rl'I'l!IIlIl! BOlltl.\', Serie.fi 2005 - Official Notice of Sale PUKe J 7 EXHIBIT C FORM OF PRELIMINARY OFFICIAL STATEMENT PRELIMINARY OFFICIAL STATEMENT DATED JUNE 2, 2005 NEW 1,'?5UE ~BOOK ENTRY ONLY. RA TINGS: See "RATINGS" herein In the opinion of Nabors, Giblin & Nickerson, P.A., Tampa, Florida, Bond Counsel, interest on the Seril:~s .zOO!.) Bonds (as hac/naIler defined) is, IInder existing statutes, regulations, rulings and court decisions: (a) excludah/clro111 gross income for federal income tax puryoses except as otherwise described herein under the caption "T/lX [XFA1PTfON" and (b) /lot an itelll of tax preference for purposes of the federal alternative minimum tax lmpost'J Ull indiz,liduals and corporations. Such interest, however, will be includable in the calculation ~f 11 corpora/iull's altcmnt;uc minimum taxable income and may be subject to other federal income lax consequences referred /0 IWrcJn under the caption 'TAX EXFMPTfON." Bond Counsel is further of the opinion that the Serres 200S BO/lds and fhe interest thereon are exempt from all present intangible personal property taxes impused /,lIrSIIIIII/ to Chl/pter 199, Florida Sta/lItes. See "TAX EXEMPTION" hereill for a discussioll of BOlld COUIISel'S opinion, inc/udinS a discussion of the corporate alternative minimum tax. $100,000,000' COLLIER COUNTY, FLORIDA Gas Tax Revenue Bonds, Series 2005 Dated: Date of Delivery Due: June 1, as shown below 'Ill<' CdS Tax Rewnue Bonds. Series 2005 (the "Series 2005 Bonds") are being issued by Collier C>lliltv, Honda (the "County") as fully registered bonds, which initially will be registered in the name of Cede & Co.. as nominn> of TI", Depository Trust Company, New York, New York ("DTC). Individual purchast's will be lTIJde in book-cntry form only through Participants (defined herein) in denominations uf $S,(JOO ;I[HI Infegral multiples thereof. Purchasers of the Series 2005 Bonds (the "Beneficial Owners") will not receive physical delivery of certific<ltes. Tr<lnsfers of ownership interests in the Series 2005 Bonds will be pffpdl'd through the Dre book-entry system <lS described herein. As long as Cede & Co. is the registered O\Vlll'r as nominee of DTC, principill and interest payments will be made directly to such registered Owner \vhich v\'ill in turn remit such payments to the Participants for subsequent disbursement to tfll' Iknl'fil'i:d Ownefs. Intefest on thl' Series 2005 Bonds is payable on December 1, 2005 and semiannually 011 c<lch June I ,Hld Dccember I thereafter. Principal of, premium, if any, and interest on the SL'ril'S 20()5 Bonds wiIl be p<lYilblt' by U.s. Bank, National Associ<ltion, Fort Lauderdale, Florida, ilS f\lying /\gl'nt <lnd I\:egistrar. The Series 2005 Bonds are subject to optional and mandatory redemption prior to their stated maturitil'S as described herein. The Series 2005 Bonds are being issued pursuant to and under the authority of Chapter 125, Florida Statutes. Sections 206.60. 336.021 and 336.25, Florida Statutes; Ordinance No. 2003-09 of the Board of County Commissioners of the County (the "Board") enacted on F['bruary 25, 2003; the ordinances enacted from time to time by the BOiUd which impose the Cas Taxes (as such term is defined and described herein), including but not limited to. Ordin<ll1ce No. 80-50 of the Board enacted on June 3, 19RO, <lS dmended bv UrdinalKf' No. 2003-34 of Ihe BO<lrd enacted on .Iunt:' 24, 2003, Ordinilnce No. 80-51 of the Board <'!laded 011 June,. t9KIl. Urdinance No. <)9-40 nf thc' Bo,mJ melded on May 25,1999. as amended bv OrdilldllCl' .~o. 2003-35 l'niKil'd by" pxtrilordlllary vote of Ihe Board on June 24,2003, Ordinance No. 93-..LS (.n99107/o0(lOQ;().l.I)( )(.\111 enacted by mJ)ority plus one \'Ote of the BOJrd on August 31,1993 JS Jmended by Ordinance No. 2001-26 uf the Board enacted on i'day H, 2001 dnd ,15 amended by Ordinance No_ 2003-36 of the Board enacted on June 2.1, 2003, each as Jmended and supplemented from time to lime (collectively, thl' "Cas Tax ()rdinances'') and other applicable provisions of Jaw; and under and purslI<lnt to Resolution No. 2003-SY tldopted by the Board on Februiuy 25, 2003, as amended Jnd sllpplC'llwnted from time to time, as pilrticulilrly Jmended by Resolution 2003-247. adopted by the Board on Julv 29, 2003 "nd JS Pilrliculilrlv dmelllJl'd "nd supplemented by Resolution 2005-~ Jdopted by the BOJrd on , 2005 (co/tecliw'lv. the "I~esolution") and I~esolution No. 2004-45 adopted by the Board on FebmJrv 10, 2004 (the "LoCJI Option GilS TJX Distribution Resolution"). The Series 2005 Bonds Jre being issued for the purpose of providing funds to (i) finance the costs of acquisition, construction, Lind equipping of various transportation capital improvements and (ii) pay certain costs of issuance of the Series 2005 Bonds, including the municipal bond insurance premium <:lnd the reserve Zlccount insurance policy premium. 111<' Series 2005 Bonds are pJyable from and secured by a lien upon the proceeds of the Cas Tax l\c\,pnues (as such term is defined and described herein) distributed to the County under the Act and cl'rt<lin oll"wr funds and Jccounts as described herein (collectively, the "Pledged Funds"), on J parity with thl' Coilil'r County, Florida Cas TuX Revenue Bonds, Series 2003 which are currentIy outstanding in ZlI1 <Iggreg<ltl' principal Jmount of $89,555.000. See "SECURITY "OR THE BONDS" Jnd "GAS TAX j\[VENUES" herein. .nl(' County may issue Additional Bonds on J parity with the Series 2005 Bonds, "uhjcct to compJizlTlce with certain conditions set forth in the Resolution. See "SECUI\:ITY FOR THE {lONDS . ^ddit;onal Bonds" herein, The Series 2005 Bonds shall not be or constitute general obligations or indebtedness of the County JS bonds within the meaning of any constitutional or statutory provision, but shall be special obligations of the County, payable solely from and secured by a lien upon and pledge of the Pledged funds in accordance with the tenns of the Resolution. No Holder of any Series 2005 Bond or any Insurer (as such tenn is defined in the Resolution) shan ever have the right to compel the exercise of any ad valorem taxing power to pJY such Series 2005 Bond, or be entitled to payment of such Series 2005 Bond from any moneys of the County except from the Pledged Funds in the manner provided in the Hesolution. This COvpr page contJins certain information for quick reference only_ It is not, and is not intended to be, a SlImmary' of the issup. Invl'stors mllst read the entire Offilial Statement to obtain in{nrm<ltion essl'ntiJI to the m<lking of an informed investment decision. P<1yment of the principal of and interest on the Series 2005 Bonds when due wlll be insured by a {m,Hll"iaJ guar;:mty insural1ce policy to be isslled by ^mbac Assurzlnn' Corporation simult<ll1t'ously with the delivt'ry of the Series 2005 Bonds. Ifnsert Insurer Logol , I,QQ/(17/()(1()(1,!c;(,} !)OC, 61 AMOUNTS, MA TURITlES, INTEREST RATES, PRICES OR YIELDS AND INITIAL CUSIP NUMBERS Price Initial Price Initi(lJ Maturity Interest or Cusip Maturity lnterest or CUSlp (June Rate Yield Numbers Amount* (June Rate Yield Numbcf:i Amount* IT IT $ 10,000 2006 % % $6,470,000 2016'* % (Yo 835,000 2007 6,7]5,000 20] 7'* 860,000 2008 6,980,000 2018" 885,000 2009 7,255,000 2019'* 9lU,000 20lU 7,545,000 2020'* ] ,880,000 2011 7,845,000 2021'* 1,940.000 2012 8,170.000 2022'* 2,010.000 2013 8,510,000 2023'* 2,080.000 20]4 13,180,000 2024'* 2.155,000 2015 13,745.000 2025'* The Series 200S Bonds arc offered whCll, as llll/l {f issued lind rcaived by the Underwriters, subject fa the appro7'nl as to lesalify by Nabors, Giblin & Nickerso11, P.A., Tampa, Florida, Bond CO/HIsel. Certain legal malfns will Ve passed un for the County hy David C. Weigel, Esq., County Attonzey, and by Bryant Miller & Olive VA., Tampll, norida, nisclosllrc Counsel. Public Financial MmUlgt'mCllt, inc. Fori Myers, Flonda is acting as Financial Ad'i..lisar 10 fire County. 11 is expedi'd thai the Series 200S Bonds "iilill be delivered fa the facilities of DTe ill Nc-l.-f.l York. New York on or about ,2005. Electronic bids for the Series 2005 Bonds will be received through Bidcomp/Parity Competitive Bidding System as described in the Official Notice of Sale. *Preliminilry, subject to change. **Bidder may dt>slgnilte these maturities to be part of Term Bonds rather than SeriilJ Bonds as specified more particularly in thl:' Official Notice of Sale under the caption "STRUCTURE." !-l194107/0()()II'lSh,.I)( 1(\hl RED HERRING LANGUAGE: This Preliminary Official Statement and the information contained Iwrein are subjpct to completion or amendment. Under no circumstances shall thl're be any sail' of the Series 200"} Bonds in any jurisdiction in which such offer, solicitation or sale would be ullJol\vfuJ prior to registration, quaJificCltion or exemption under the securitif'S laws of such jurisdiction. 'The County has deemed this Preliminary Official Stiltement "fina!," except for certain permitted omissions, within the contemplLltion of Rule 15c2-12 promulgated by the Securities and Exchange Commission. l;( ;<-)/(/7 /OnlH)()r;6.1.1)( K'y() 1 COLLIER COUNTY, FLORIDA Government Complex 330t East Tamiami Trail Naples. Florida 34112 (239) 774-8097 BOARD OF COUNTY COMMISSIONERS Fred W. Covle, Chair Frank Ilalas, Vice Chair Jim Coletta, Commissioner Donna Fiala, Commissioner Tom fft'nning, Commissioner COUNTY MANAGER James V. Mudd CLERK OF THE CIRCUIT COURT OF COLLIER COUNTY AND CHIEF FINANCIAL OFFICER Dwight F. Brock, Esg. DIRECTOH OF BUDGET/FINANCE Mike Smyk()\'vski COUNTY ATTORNEY DaVid C. Weigel, Es,!, BOND COUNSEL Nabors, Cihlin & Nickerson, P.A. TalllpiJ, Florida DISCLOSURE COUNSEL Brvant Milkr & Olive "A. TilInpa, Florida FINANCIAL ADVISOR Public Financial 1\'1.:magl)ml'nt. Fort f\vlYl'rs, Florida INDEPENDENT AUDITORS KP!\tC LLP Tampa. Ftorida 14J99/07/o00{)(IS{1,).I)()( '\"(-)1 No (h'JJer, brokn, salesman nr other person has been authorized by the Count)' to give ,my informCltion or to tllJke any repn..'sl'ntJtiofls in conncction with the Series 2005 Bonds other than as contained in this Official Statement, and, if giv('n or made, stich information or representations must not be reli('d upon JS having been Julhori/ed by till' County. This Official Statement dot's not constlhlte an uffer to seIJ or the soliei tation of an offef to buy, nor shall there be any sale of the Series 2005 Bonds by ,my person in <:lny jurisdiction in which it is unlawful for such person 10 make such offer, solicitation or sale. The information set forth herein hJS been obtained from the County, The Depository Trust Comp,my, Amb<:lc Assurance Corporation, Jnd olher sources 'which ,ue believed to be reliable, but is not guaranteed .lS to accuralY or completeness, and is not to be construed as a representation by the County with respect to any information provided by others. The information and expressions of opinion stated herein .lre subject to change, and neither Ihe delivery of this Official Statement nor any sale made hereunder shall creJte, under Jny circumstances, any impJicJtion that there has been no change in the malters described herein since Ihe dilte hereof. IN CONNECTION WITH 1'1115 OFfERING, THE UNDERWRITERS MAY OVERALLOT OR EFFECT TRANSACTIONS TIIAT ST;\BILlZE OR MAINTAIN THE MARKET PRJCE OF THE SERIES 2005 BONDS AT LEVELS ABOVE THAT WIIICH MIGHT OTHERWISE PREVAIL IN THE OPEN ,\tARKET. SUCII STABILlZINC. IF CO\tMENCED. MAY BE DISCONTINUED AT ANY TIME. All summaries herein of docunwnts and agreements JrC' ljualified in their entirety by reference 10 <.;uch doclIml'llls and JgrpC'menls, Jnd all summarips herein of the Series 2005 Bonds are qualified in their l'nlirety by rdt:.'rence 10 the form thl'rt'of included in tht' .lforesaid documents and agreements. NO REl;ISTRATION STATE\IENT RELATING TO THE SERJES 2005 BONDS HAS BEEN FILED WITH TilE SECUI\ITIES AND EXCHANGE COMMISSION (THE "COM:'vlISSI0N") OR WITH ANY STATE SECURITIES COMMISStON. tN MAKING ;\NY INVESTMENT DECISION, INVESTORS MUST I\ELY ON THEm OWN EXAMINATIONS OF TilE COUNTY AND TIlE TERMS OF THE OFFERING, INCLUDING TIlE MERITS AND I\ISKS INVOLVED. THE SERIES 2005 BONDS HAVE NOT BEEN ;\/'I'ROVED OR DISAPI'I\OVI-D BY n IE COMMISSION OR ANY STATE SECURITIES COMMISSION ()J, I\E(;ULATORY AUTIIOIUlY TIlE FOI\EGOING AUTIIORITIES HAVE NOT PASSED UPON THE ACCUI\ACY OR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY I\EPRESENTATION TO THE CONTRARY MA Y BE;\ UW"IINAL OFFENSE. [l\l'maindcr of page intentionally left blankl il '<ilJ/1I7/01l1l1l'lS(;1()(](I'h! ....9 .........10 ..........10 .............]] .......]2 ......]3 .........16 ..........]8 .................... ]8 ......... ]8 .........]9 ............. ]9 ... ]9 .............20 ..............20 .......20 .....20 .....2J ........2] TABLE OF CONTENTS Contents INmcmucnON Cent'TCl! ............................................... ..................................................... l'he ('ountv ........._......... ................ ...................... ...................... ................... Purpose of the Series 2005 Bonds ................ ....................... ..................___.......................... Security for the Bonds. .............................. ............... ............. ...................................................... Rt'dl'Inption I'ruvisions ............. ..................... ............. ................................................ FinZlncjaJ Guaranty Insurance Policy ................. ........................................................ Additionill Bonds..... ............... .............................. ............................................... or ax Exenlpti on ........... . .... ... ............... ....... ...................... .. ....... ............................................ Continuing Disclosure .......... ................ ............................... ............................................ AmendIllcnt of I~esolution ............. ............................ ............. .................................................. Add i tiollal fnfonnJtion ............. ..... ............. ... ................... ................ AUTIlOt,ITY FOR ISSUANCE ........... DESCRIPTION OF THE SERIES 2005 RaNDS ....................................... Cnwral ..,.................................... Book-Entry Only System .................................. ............. PaVllwnt of the Series 2005 Bonds ..................... ()ptionaJ Redemption.. ....................................... ............. i"vlilfl{I(l!{)ry I~(>dt:'mption ....... ............................. Notice of J\f'dcmption.. ....... ................................ ................ Inh'fchangeilbility, Negotiability and Transfer SECUJ<ITY FOJ< THE RONDS ........................... ............................ Cl'neral.............. ..............._..... ............... Uniform Commercial Code ................. ....._.......... Funds ,md Accounts ............. ...................... (~ollstrlldioll Fund ........................... 2005 Subaccount of the Rl'sC'n'c Account Disposilion of Cas Tax RC\'L'nUl''s _.................... Additional Bonds .............. ............ Subordin<ltcd Indebtedness..... ....._....... ............. ............................... .................................. ............................... .............................. Books and r\ccords ........._................................... ............................... Collcction of CdS Tax r\l'venul's; No Impairment .............. .................. AccC'ssion of Subordinatl'd InddJtt'dnl'ss to Parity Status with Bonds. InvC'sflllPIlts ....._................. ............................. ............. Separ<ltl' /\ccounts .................................................. ................ Amendment of Resolution without Consent of Bondholders Control by Insurer in Case of E\,pnt of Default ....... .............. ...... ...... GAS TAX I,EVENUES ....... .......................................... Ceneral ...................................-....-.............................. l-listorical Cilsoline Sales in the County ................ .... .............. Seventh Cent Cas TJX . ........................... .............. ............................,.... Ninth Cent CdS Tax .. _.................................. ................. .................... ....._... Six Cents LOCil] Option Cas Ta, and Five Cents Local Option CilS TilX .............. Constitution,ll eelS 'LlX.. Page ...J ...........J ........1 ....,J .....2 ........2 ......2 ..............2 ...............2 .........3 .........3 .......3 .......3 ..........4 .............4 .......... ..4 ....6 ........7 ...7 ......7 ................. ....8 .......9 ................... ....24 ........... ..25 .................... .......30 14Yi9/07/00tlll'i'iI,.1.1)(){' vb I Aggregate Cas Tax l~ev('nu('s ... .................. Pro formil Dl'bt Service CoverJge ............. .............. FINANCIAL CUi\l{I\NTY INSURANCE POLICY .....................34 .............-............,................-....... ......................................35 ....35 ...35 ,................ ............................35 ...........................,.......... .....,......... .......36 .............. ...................... .................... ..............37 ................. ...............................37 ..38 .40 ...4] ..........42 ....43 ..44 .........,45 ........,45 ..,45 .....46 ..,46 ..46 ..46 .......,47 ......,47 ..,47 ..48 .....,48 ............. ................,41l 49 ..49 ..49 ...50 ......5] (;('neraJ PJymlTlt Pursuant to Financial Guaranty Insurance Policy ^mbac Assurance Corpor<lhon ;\ \'JiJable InformJtion ................. Incorporation of Certain Documents by Reference 200S RESEI{VE ACCOUNT INSURANCE POLICY.. ESTIMATED SOURCES AND USES OF FUNDS ..................... DEBT SERVICE SCHEDULE ............... INVESTMENT POLICY ....................... LEGAL MA TTE!{S ................... ............ LlTIGA 1'101" ............. .............. ................ I JISCLOSURE REQUIRED BY FLORJDA BLUE SKY REGULATIONS J'AX EXEMPTION ............................... ............. Oplnion of Bond Counsel.......................... InternJl J\L'\'entlc Cude of 1986. CoJlalt'rJl Tax Consequencl's ................... .... ............................. ............................... rlorida Taxes... ................. ............................. .............. ................................................. (Jlher Tax MatlL'rs ..................... ...................... ....................,......................................... ,................... Tax Treatmen! uf Original Issue Discount ........................ ....................... ................. 'LlX Treatment of l30nd Premium .... ................ ......................................................... I{ATINCS ............... ... ......................... ......,....,............ ......................................................................... FlN/\NClAL /\DVISOR .............. ............... ........... ......,................................ '\UDITED FINANCIAL ST A TEMENTS ................ UNDERWRITINC .................. .......... .............................. ('(JNTINCENT FEES ENFORCEABILITY OF REMEDtES ........................................ (nNTINUINC DISCLOSURE ............ ACCURACY AND COMPLETENESS OF OFFICIAL STATEMENT ;\UTHO!\IZATION OF OFFICIAL STATEMENT............... .......................................................... ................................... ,\I'I'ENDtX ;\ .. GENERAL INFORMATION "ECARDING COLLIER COUNTY. FLORIDA ,\I'I'ENDIX B.. AUDITED FINANCIAL STATEr-IENTS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2004 !\I'I'ENIJIX C.. FORM OF THE RESOLUTION /\I'I'ENIJIX D.. FORM OF FfNI\NClAL GUARANTY ]NSUI{ANCE I'O!.lCY ,\/'I'ENDIX E.. FORM OF BOND COUNSEL oriN ION !\I'I'ENDIX 1'.. FORM OF CONTINUINC DISCLOSURE CERTIFICATE : I ,'l'i/07/()0009S6.'1J)OC\,(,1 II OFFICIAL STATEMENT relating to $100,000,000 . COLLIER COUNTY, FLORIDA Gas Tax Revenue Bonds, Series 2005 INTRODUCTION General TIlis introduction is subject in alI 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 Collier County, Florida (the "County"), of its $](10,000,000' Gas Tax Revenue Bonds, Series 2005 (the "Series 2005 Bonds") to potential investors is made only by means of the entire Official Statement, including all <lppendices ilttached hereto. All capitalized undefined terms used in this introduction shall have the m'\lning set forth in "M'PENDIX C - FO"M OF THE "ESOLUTlON" allached hereto. The County '[h, County IS located in the southwestern portion of the State of Florida. The City of Naples, located in till' western part of the County, is tht:' largest incorporated municipality in CoJlier County and sen-cs as its cOllnty seat. The County, \vilh a 2004 population of 292,466 according to the United States Cl'nslls, derives its economy from wholesale zmo retail tradc, government, tourism, contract construction, <lgriculturc, cattle ranching <lnd timber. Part of the Everglildes National Park, the United States' only subtropi,al nallon"1 park, comprises " portion of the County. See "APPENDIX A _ GENERAL INFOr\f'vI!\T10N I\EC!\RDlNC COLLIE" COUNTY" ""aclwd hereto for more information about the Countv. Purpose of the Series 2005 Bonds The County proposes to issue thl' Series 2005 Bonds for the purpose of providing funds to (i) finJI1Cl' the costs of Jcquisition, construction, and equipping of various transportation capital improvements ilnd (ii) pJY certain costs of issuance of the Series 2005 Bonds, induding the municipal bond insurance premium and the reserve account insurzlIlce p{)Jicy premium. The Series 2005 Bonds will be issued on a parity as to source of security \vith the Issuer's Gas Tax Revenue Bonds, Series 2003 (the "Series 2003 Bonds") which Jrl:' currently outstanding in tlw aggregate principal amount of $89,555,000. The Series 200."J Bonds, the Series 2003 Bonds, and any Additional Bonds (as hereinafter defined) are herem colIectiv,'ly refern'd to as the "Bonds". See "SECURITY FOR THE BONDS-Additional Bonds" herein. 'I- Preliminilry, subject to change. 14]C9/117/(]()(]O'!S(" I)()( \hl Security for the Bonds Pursuant to Resolution No. 2003-89 adopted by the BOi1rd of County Commissioners of the ( Olln!v (the "Bo<lrd") on Febru<lry 25, 2003, as amended emu supplemented from time to time, as porticularty "mended by Resolution No 20m-247 "dopted by the Boord on July 29, 2003 "nd "s I'ilrtindilrty "mended "nd supplemented by Resolution No. 2005-_ adopted by the Bo"rd on -.- ___02005 (collectively, the "Resotution"), the Series 2005 Bonds "re pay"ble from "nd secured by, " !iell upon lhl' proceeds of the Gas Tax I\Pvenues (as such term is defined and described herein) on a pilritv with the Series 2003 Bonds, and distributed to the County under the Act (as defined herein) and ll!llOunts on deposit in certain of the funds imd accounts established under the Resolution, as described hen'In (collectively. the "Pledged Funds"). See "SECURITY FOR THE BONDS" and "GAS TAX I\EVENUES" herein. Redemption Provisions The Series 200S Bonds "re subject to option,,] and m"ndatory redemption prior to their stated m,llllJitil'S "s described herein. See "DESCRIPTION OF THE SERIES 2005 BONDS" herein. Finilncial Guaranty Insurance Policy Payment of the principal of and inkrest on the Series 2005 Bonds when due wiIJ be insured by a 11Il;j[Kial gllJranty insurance policy to be issued by Am hac Assurance Corporation simultaneously with 1110' deli\l'rv of the Series 200S Bonds ('Ambac" or the "Insurer"). See "FINANCIAL GUARANTY l\iSllJ,,\NCE POUCY" hcrein and "APPENDIX 0 - FORM OF FINANCIAL GUARANTY INSURANCE 1'(lUCY" "Uoched herl'to. Additional Bonds The County may isslIe Additional Bonds on parity with the Series 2005 Bonds and the Series 2003 r;lllHb subject to compJianC{) with locrtZlin conditions set forth in the Resolution. See "SECURIIT FOR II IF BONDS - Additioml Bonds" hcrcin. Lu: Exemption In the opinion of Nabors, Ciblin & Nickerson, P.A., Tampa, Florida, Bond Counsel, interest on the ~;tT)('S 2()()S Bonds is, undt'f existing stZltutl'S, rCbTlJ!ations, rulings and court decisions: (a) excludable from ,\~r(l_C;S income for fedcT<l1 inconll' tax purposes except as otherwise described herein under the caption 'T:\X EXEMPTION" <lna (b) nul <In item of tax preference for purposes of the federal alternative 11l11111lHlm tax imposed on individuals and corpofations. Such interest, however, will be includable in the (';lkulatlofl of a corporation's alk'rnativC' minimum taxable income and may be subject to other federal illl'(>rrH' tax consequences referred to herein under Ihe Glption 'TAX EXErvfPTION." Bond Counsel is I UJ t ht'f of the opinion that the Series 2005 Bonds and tlw interest thereon are exempt from all present i!lt.lll~,~lblt' personal property taxes imposed pursuant to Ch<lpter 199, Florida Statutes. See "TAX F\F\IPTION" herein fOf a discussion of Bond COlll1sd's opinion, including a discussion of the corporate ,1Itc'l'lldli\T minimum tax. ; I ~:")i(C,/O()()(){JShl.I)(!C\'61 Continuing Disclosure 'n,e County has agreed and undertaken, for the benefit of the Series 2005 Bondholders, to provide certam financial information and operating data relating to the County, the Pledged Funds and the Series 2005 Bonds pursuant to Rule 15c2-I2 of the Securities and Exchange Commission. See "CONTINUING DISCLOSUI<E" herein. Amendment of Resolution Pursuant to the Resolution, the County is granted the right to make certain amendments to the Resolution without the consent of the Holders of the Series 2005 Bonds. See "APPENDIX C _ FORM OF THE RESOLUTlON" attached hereto. Additionallnfonnation 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 Ambac, its Financial Guaranty Insurance Policy, and the 2005 Reserve Account Insurance Policy and contains certain information concerning The DepOSItory Trust Company, New York, New York CDTe), and its book-en try-only systelll o( registration. Such information has not been provided by the County and the County does not certify as 10 the accuracy or sufficiency of Ihe disclosure practices or content of information provided by such pJrtll'S Jnd is not responsible for the information provided by such parhes. A copy of the Resolution and all documents of the County referred to herein may be obtained from DWight E. Brock, Clerk of Circuit Court and Chief Financial Officer of Collier County, Government Comrlex. JJOI Lost Tami"mi Trail, Building L. Naples, Florid" 341]2, Phone (239) 732-2646. C<lpitaJizl'd terms used but nof defined herein have the same meaning as when used in the Resolution unless the context clearly indicates otherwise. See "APPENDIX C _ FORM OF THE I<ESOLUTlON" "tt"ched hereto. All inform"tion included herein has been provided by the County, except \vhcrt' dltributed to other SOurn's. Copies of such documents, reports and statements referred to herelll th"t are not included in their entiretv in this Official Statement Illay be obtained from the County. AUTHORITY FOR ISSUANCE Thl~ S('rips 2005 Bonds arc being issued pursuant to and under the authority of Chapter 125, Florida Statutes, Sedions 206.60, 336.021 and J36.25, Florida Statutes; Ordinance No. 2003-09 of the Board of County Commissioners of the County (the "Board") enacted on February 25, 2003 (the "Home Rule Ordinance>"); the ordinances enaclL'd from lime to time by the Board which impose the Gas Taxes (as such term is defined and described herein), including but not limited to Ordinance No. 80-50 of the Board enacted on June 3. ]980, as amended by Ordinance No. 2003-34 of the Board enacted on June 24,2003, Ordinance No. 80-51 of the Board enacted on June 3, 1980, Ordinance No. 99-40 of the Board enacted on May 25. 1999, as "mended by Ordinance No. 2003-35 enacted by extr"ordinary vote of the Board on June 24, 2003, Ordin;mcl' No. 93-4R enacted by majority plus one vote of the Board on August 31, ]993 as amended by Ordinance No. 2001-26 of the Board enacted on i\'lay ti, 2001 and as amended by Ordinance No. 2003-::;6 of till' BO(lrd l'nadcd on June 2-1. 2003, (,<Jeh CIS amended ;llld supplemented from time to time (Cllllccli\'dy. the "CdS Tax Ordinances"); "esolution No. 2004-45 adopted by the Board on Februarv 10. 14399/07/001111'10;6.' 1)0(\61 .1 21l().j (the "Local Option Gas Tax Distribution Resolution") and other applicable provisions of law (clIlkctin'ly, the "^ct"); .:md Undl'[ and pursuant to the Resolution. DESCRIPTION OF THE SERIES 2005 BONDS General The Series 2005 Bonds will be dated and will mature in the years, and in the amounts and bear mlerest at the rates and be payable on the dates set forth on the cover page hereof. Interest on the Series 2005 Bonds is payable on December 1, 2005, and semiannually on each June 1 and December 1 thereafter (each an "Interest Date"). Principal 01, premium, if any, and interest on the Series 2005 Bonds will be pa\'able by US Bank, National Association. Fort Lauderdale, Florida, as Paying Agent and Registrar. /look-Entry Only System THE FOLLOWING INFORMATION CONCERNING DTC AND DTC'S BOOK-ENTRY ONLY SYSTEM HAS BEEN OBTAINED FROM SOURCES THAT THE COUNTY BELIEVES TO BE RELIABLE, BUT TIlE COUNTY TAKES NO RESPONSIBILITY FOR THE ACCURACY THEREOF. DTe will act as securities depository for the Series 2005 Bonds. The Series 2005 Bonds will be r('gistl'n~d in thQ name of Cede & Co. (DTC's partnership nominee). Purchases of beneficial ownership i:lkH>sts in the Series 2005 Bonds will be made in book-entry only form, in the denominations hereinbefore dt?scribed. Purchasers of bf'neficial ownership interests in the Series 2005 Bonds ("Beneficial Owners") will not receive bond certificates representing their ownership interests in the Series 2005 Bonds, except in the event thilt use of the book-entry only system for the Series 2005 Bonds is dlSt'ontinul'd. One fully registered certific<lte wiII be issued for each maturity of the SerIes 2005 Bonds, dThl deposited with DTC. SO l.ONG AS CEDE & CO. IS THE REGISTERED OWNER OF THE SERIES 2005 BONDS, AS NOMINEE OF DTC, CERTi\lN REFERENCES IN THIS OFFICIAL STATEMENT TO THE SERIES 2005 !:ONUJ]OLDEf,S OR REGISTERED OWNERS OF TilE SERIES 2005 BONDS SHALL MEAN CEDE & (() ,\ND SHALL NOT MEAN TilE BENEFICIAL OWNERS OF THE SERIES 2005 BONDS. THE InSCRIPTION WHICJ] FOLLOWS OF TilE PROCEDURES AND RECORD KEEPING WITH RESPECT TO BENHIClAL OWNERSHIP INTERESTS IN THE SERIES 2005 BONDS, PAYMENT OF INTEREST ,\ND PRINCIPAl. ON HIE SERIES 21105 BONDS TO DIRECT PARTICIPANTS (AS IIEREINAFTER DFFtNED) OR BENEFICIAL OWNERS OF TilE SERIES 2005 BONDS, CONFIRMATION AND m,\NSFER OF BENEFICIAL OWNERSHIP INTERESTS IN THE SERIES 2005 BONDS, AND OTHER r\EL\TED TRANSACTIONS BY AND BETWEEN DTC, THE DIRECT PARTICIPANTS AND !:ENEFIClAL OWNERS OF THE SERIES 2005 BONDS IS BASED SOLELY ON INFORMATION FURNISHED BY DTC. ACCORDINGLY, THE COUNTY NEITHER MAKES NOR CAN MAKE ANY RU'!,ESENT A TIONS CONCERNINC THESE MA TTERS. DTC, the world's largest depository, is il limited-purpose trust company organized under the New York BJnking Lnv, a "banking org,mization" within the meaning of the New York Banking Lnv, a member of the Federal Reserve System, a "cleilring corporation" within the meaning of the Nev,,,. York litlltprm Commercial Code, and <l "clf'<lring agency" registered pursuLlnt 10 the provisions of Section -171\ of tIll' Securities Exchange Ad of 1934. DTC holds and provides asset servicing for over 2.2 million issul's : 1~"')/07 /()0ll0956~. 00C\'61 of U.s. ond non-US equity issues, corporote and municipol debt issues, ond money market instruments from over tOo countries thot DTe's participants (the "Direct Participonts") deposit with DTe. DTC also f<lcilitalcs the post-trade settlement among Direct Participants of securities transactions, in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Particip,mts' accounts. This eliminates the need for physical movement of securities <:ertificates. 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 ond Clearing Corporotion ("DTCe''). DTCC, in turn is owned by a number of Direct Porticipants of DTC ond Members of the National Securities Clearing Corporation, Fixed Income Clearing Corporation. and Emerging Morkets Clearing Corporation, as well as by the New York Stock Exchange, Inc., the American Stock Exchange LLC and the National Association of Securities Dealers, Inc. Access to the DTC system is atso available to others such as both U.s. and non-US securities brokers, dealers, banks, trust companies <mJ clearing corporations that dear through or maintain a custodial relationship with a Direct Participont, either directly or indirectly (the "Indirect Participants"). OTC has Standard and Poor's highest rating: AAA. The DTC rules applicable to DTC and its Direct and Indirect Participants are on file with the Securities and Exchange Commission. More infonnation about DTC can be found at b.:Wl~::_JJlrU:11Jll and .ww\.v.dfcor~_. Purchilses of Series 2005 Bonds under the DTC system must be made by or through Direct PartiCip.lnts, which will receive a credit for such Series 2005 Bonds on DTC's records. The ownership inkrest of (,i1ch ilclual purchaser of each Series 2005 Bond (the "Beneficial Owner") is in lorn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners win not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirrnLllions providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participimt through which the Beneficial Owner entered into the transaction. Trans{prs of ownership mterests in the Series 2005 Bonds are to be JccompJished by entries made on the books of Direct and Indir('ct Participants acting on beh,llf of the Beneficial Owners. Beneficial Owners will not f('ccivc certificates representing their beneficial interests in the Series 2005 Bonds, except in the l'Vf'tlt that ust' of the book-t'ntry system for the Series 2005 Bonds is discontinued. To focditate subsequent tronsfers, all Series 2005 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 o\JtllOri~ed representative of DTe. The deposit of Series 2005 Bonds with DTe and their registr<ltion in tJ'll' n<lmc of Cede & Co. or Stich other DTC nominee do not effect any change in beneficiJI oWlwrship. DTC has no knowledge of the achlill Beneficiol Owners of the Series 2005 Bonds. DTes records reflect onl)r the identity of the Direct Participants to whose .:lccounts such Series 2005 Bonds are credited, which m<lY or may not be the Beneficial Owners. The Direct and Indirect Participants wiII remain responsihle for keeping <In account of their holdings on behalf of their customers. ConveY<lnce of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements made among them, subject to any statutory or regulatory requirements <lS lllay be in (>Heet from time to time. Redemption notices shall be sent to DTC. If less than att of the Seril's 2005 Bonds are bemg redeemed, DTes practice is 10 determine by lot the amount of the interest of each Direct Pi1Ttlcip,mt in such bonds, as the case may be, to be redeemed. NeithPr I)TC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Series 2005 B(lflds 1Inl(>."s authorized by a Direct Participant in ,Kcordancp with DTC's procedures. H,<J9/IJ7/0000'i5h.'.I)()(' \61 s Under its usual procedures, DTC mails an Omnibus Proxy to the County as Soon as po<..;sible after the record date. The Omnibus Proxy Jssigns Cede & Co.'s consenting or voting rights to those Direct Participants tt) whose accounts the Series 2005 Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). PrinClpal and interest payments on the Series 2005 Bonds will be made to DTC DTC's practice is to credit Direct Participants' accounts, upon DTC's receipt of funds and corresponding detail information from the County or the Registrar on the payable date in accordance with their respecflve hotdings shown on DTC's records. Payments by Direct or Indirect 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 with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Direct or Indirect Participants and not of DTC the Registrar or the County, subject to any statutory and regulatory requirements as may be in effect from time to time. Payment of principal and interest to DTC is the responsibility of the County and/or the Paying Agent for the Series 2005 Bonds. Disbursement of such payments to Direct Participants is the responsibility of DTC, and disbursement of such payments to the Beneficial Owners is the responsibility of the Direct and Indirect Parflcipants. DTC may discontinue providing its services as securities depository with respl'ct to the Series 2005 Bonds at any time by giving reasonable notice to the County. Under such circumstances, in the event that a succeSSor securities depository is not obtained, certificates are required to be printed and delivered. The County may decide to discontinue use 01 the system of book-entry transfers through DTC (or J successor securities depository) upon compliance by tht., County with all applicable policies and procedures of DTC regarding the discontinuation of the book-entry only system of registrntion. In that ('vent, certificates will be printed and delivered. Payment 01 the Series 2005 Bonds The pnncipal 01 or Redemption Price, il applicable, on the Series 2005 Bonds are pavable upon presentation .:md surrender of the Series 2005 Bonds at the office of the Paying Agent. Interest payable on any Series 2005 Bond on any Interest Date will be paid by check or draft of the Paying Agent to the Holder in whose name such Series 2005 Bond shall be registered at the closE' of business on the date which shaJl be the fifteenth day (whether or not a business day) of the calendar month next preceding stKh Interest Date, or, at the request .:md expense of such Holder, by bank wire transfer for the account of such Holder. All payments of principal of, or Redemption Price, if applicable, ,:md inh.'T(>st on the Series .iOOS Bonds shzd] be paYilble in any coin or tLlTrency of the United States of America which at the time of payment is legal tender for the pJyment of public and private debts. For so long as the Series 2005 Bonds shall be held in the DTC book-entry system (without certificates), all such payments of principal of, redemption premium, if any, and interest on the Series 2005 Bonds will be made to Cede & Co., as registered owner thereof, by the Paying Agent and payments to Beneficial Owners will be the responsibility 01 DTC and the DTC Participants. See "DESCRIPTION OF THE SERIES 2005 BONDS - Book-Entry Only System" herein. [1.1'19/07 /()nOO9'i6~.1 )0(' \'hl " Optional Redemption The Series 2005 Bonds maturing on or before June ], 201') are not subject to optional redemption prior to maturity. The Series 2005 Bonds maturing JEter June" 2015 are subject to redemption at the option of the County in whole or in part at any time on or after June 1,2015, in such order of maturities as may be determined by the County (less than at! of a single maturity to be selected by 101) at a redemption price of lOOI};) of the principal amount to be redeemed, plus ilccrued interest to the dilte set for redemption. Mandatory Redemption TIle Series 2005 Bonds maturing on lune ], ~ are subjecl to mandalory sinking fund redemption, prior to maturity in part, by tot on June ], _ and on each lune 1 thereafter, at a redemption price equal to the principal amount of such Series 2005 Bonds or porlions thereof to be redeemed, plus interest accrued thereon 10 the date of redemption. on June] in the following years and in the following Amortization Installments: Year Amortization Installments 20_ 20_ 20_ 20_ 20_' $ *MatuTity Notice of Redemption Notice of such redemption, which shall specify the Series 2005 Bond or Series 2005 Bonds (or portions Ihereof) 10 be redeemed and the date and place for redemption, shall be given by Ihe Regislrar on behalf of the County, and (A) shat! be filed with the Paying Agl'tlt of such Series 2005 Bonds, (B) shat! be mailed first class, postage prepaid, at least 30 JilYS prior to the redemption date to aH Holders of Series 200S Bonds to be redeemed at their addresses ilS they appf'ilr on the registration books kept by the RegistrJr as of the date of mailing of such notice, <md (C) shilll be IllJiled, certified mail. postage prepaid, at least 35 days prior to the redemption date to the registered secllriht:,s depositories ilnd two or more nationally recognized municipal bond information services. Failure to mail such notice to such depositories or services or the Holders of the Series 2005 Bonds (0 be redeemed, or any defect therein, shaH not Clffect the proceedings for redemption of Series 2005 Bonds as to which no such failure or defect has occurred. Notice of optional redemption of Series 2005 Bonds shall only be sent if the County determines it shall have sufficient funds Clvailable to pJY the Redemption Price of and interest on the Series 2005 Bonds called for redemption on the redemption date. As described above under "DESCRIPTION OF THE SERIES 2005 BONDS __ Book-Entry Only System," for so long as the Series 200S Bonds are registered in the name of DTC or its nominee, notice of redemption of ,my Series 200S Bond \vill be given by the Rl'gistrar to DTC or such nominee only, who \vill then be .'iok'ly responsible for selecting imd notifying those DTC PClrticipants and Beneficial Owners to be affected by sllch rt'demptiol1 I4J'i9/07/01l1liJ')S63 t )(lC \'61 ~ , The County may pro\'idc that a notice of redemption may be contingent Upon the OCcurrence of certain condition(s) ilnd that if such Gondition(s) do not occur, the notice will be rescinded; pro\-ided notice of rescission shilll be mailed in the ITlanner described ilbove to JJI affeded Holders of the Series 2005 Bonds not later thJn thn't' (3) business days prior to thE' date of redemption. Interchangeability, Negotiability and Transfer So long as the Series 2005 BOlIds arc registered in the nam/! of ore or its nominee, the following paragraphs relating to tran~rer and exchange t~r Senes 2005 Bonds Ju not apply to fhe Series 200S Bonds. Series 2005 Bonds, upon surrender thereol at the ollice 01 the RegIStrar with a written instrument 01 transler satislactory to the Registrar, duly executed by the Holder thereol or his attorney duly authorized in writing, may, at the option 01 Ihe Holder the reo!, be exchanged lor an equal aggregate principal amount 01 registered Series 2005 Bonds and 01 the same maturity 01 any other authorized denominations. The Series 2005 Bonds issued under the Resolution shall be and have all the qualities and incidents of negotiable instruments under the law merchant and the Uniform Commercial Code of the State of Florida, SUbjl'ct to the provisions for registration and traIlsfer contained in the l\esolution ilnd in the Series 2005 Bonds. So long JS <lny of the Series 2005 Bonds shall ITIllJin Outstanding, the County shall mJinti1.in ilnd keep, at the offiCt-' of the Registrar, books for the registration and transfer of the Series 2005 Bonds. Each Series 2005 Bond shall be translerable only upon the books 01 the County. at the ollice 01 the Registrar, under such reLlsonable reguliltions as the County may prescribe, by the Holder thereof in person or by his attorney July authorized in writing upon surrender tht:'reof together with a written instrument of transfer satisfactory to the l\egistrar duly executed and guaranteed by the Holder of his duly authorized Jttomey. Upon till' transfer of any such Series 2005 Bond, the County shall Issue, and G1USe to be iluthenticated, in the name of the transferee a new Series 2005 Bond or Series 2005 Bonds of the same aggregate principal amount Jnd maturity as the surrendered Series 2005 Bond. 111(' County, the Registrar and any paying ilgent or fiduciary of Ihe County may deem and treat the person in whose nanw any Outstanding Series 2005 Bond shaH be registered upon the books of the County as the absolute o\\'ner of such Series 2005 Bond, whether such Series 2005 Bond shall be overdue or not, for the purpose of receiving p"yml"nt of, ur on "Ccount of, the principal of, redemption premium, if any, and interest on such Series 2005 Bond and for all other purposes, Jnd all such payments so made to any slIch registered owner or upon his order shall be valid and effectuilJ to satisfy <Jnd discharge the liability upon such Series 2005 Bond to the extent of the sum or sums so paid and neither the County nor the Registrar nor any pJying agent or other fiducj..,ry of the County shall be affected by any notice to the contrary. TIle Registrar shalt lorthwith (A) fotJowing the fifteenth day prior to an Interest Date lor any such Series; (B) following the fifteenth day next preceding the date of first mailing of notice of redemption of tlny Series 2005 Bonds; and (C) at <my other time> as reasonably requested by the Paying Agent, certify and furmsh to such Paying Agent the names. addresses and holdings 01 Series 2005 Bondholders and anv ()tl1t'r relevant infonn.ltion ft'flected in the registration books. Any Paying Agent of any fully registered Blind shall dft'ct payment of interest on such S('rit's 2005 Bonds by mailing a check to the Series ~OO~ !11<J'if07 !OOOO'!C;h'.IX lC vi, I H Bondholder entitled theretu or may, in lieu thereof, upon the re(lupst and at the expense of such Holder, transmit such payml'nt by bank wire transfer for Ihe aCcolmt of such Holder. In <111 cases in which Ihe prlvilege of exchanging Series 2005 Bonds or transferring Series 2005 Bonds is exercised. the County shot! issue and the Registrar shot! authenticate and deliver Series 2005 Bonds in accordance with the provisions of the HesoJution. Execution of Series 2005 Bonds by the Chair and Clerk for purposes of exchanging, replacing or transferring Series 2005 Bonds may occur at the time of the original detivery of the Series 2005 Bonds. All Series 2005 Bonds surrendered in any such exchanges or Iransfers shot! be held by the Registrar in safekeeping until directed by the County to be destroyed or returned by the Registrar. For every such exchange or transfer of Series 2005 Bonds, the County or the Registrar may milke il charge sufficient 10 reimburse it for any tax, fee, expense or other governmental charge required to be paid with respect to such exchange or transfer. The County and the Registrar shot! not be obligated to make any such exchange or transfer of Series 2005 Bonds during the fifteen (15) davs next preceding an Interest Date on the Series 2005 Bonds, or in the case of any proposed redemption of Series 2005 Bonds, then during the fifteen (15) days next preceding the date of the first mailing of notice of stich redemption and continuing until such redemption date. SECURITY FOR THE BONDS General Except as provided in the Resolution and described below under the heading "SECURITY FOR THE BONDS." the pavment of the principal of or Rl'(!emption Price, if applicable, and interest on the Bonds is secured forthwith equally and ratably by a pledge of and lien upon the Pledged Funds in accordance with the provisions of the Resolution. The Pledged Funds will immediately be subject to the lien of this phlge without any physical delivery thereof or further act, and the lien of this pledge is valid ilnd bindmg ilS ilgainst all parties having claims of ilny kind in tort, contract or otherwise against the County. "Pledged Funds" means (I) the Cas Tax Revenues and (2) until applied in accordance with the provisions of the Resolution, all moneys, including investments thereof, in the funds and accounts established under the Resotution, except (A) as for the Unrestricted Revenue Account and the Rebate Fund, and (B) 10 the extent moneys on deposit in a SUbilccount of the Reserve Account shall be pledged solely for the payment of a particulilr Series of Bonds for which it \vas established in accordance with the provisions of the Resolution. "Cas Tax Revenues" means the moneys received by the County from the proceeds of the Gas Taxes. "Gas Taxes" means, cot!ectively. the Seventh Cent Cas Tax, the Ninth Cent Gas Tax, the Five Cents Local Option Cas Tax, Ihe Six Cents Locat Option Cas Tax, the Constitutional Gas Tax and any olher gas tax imposed and/or received by the County which is specifically pledged under the Resolution or by the County pursuant to Supplemental Resolution. "Seventh Cent Gas Tax" means the tax of one cent per gallon on motor fuel levied by Section 206.60, Florida Statutes, and special fuel levied by Section 206.87. Florida Statute's, and allocatpd to the County pursuant to the provisions of subsection (l)(b) of said Section 206.60 and subsection (2) of SectIon 206.875, Florid<1 Statutes. "Ninth Cent Gas Tax" means the tax of one cenl per gzlllon on motor fllel and special fuel imposed by the County pursuant to Section 336.021, Florida Statutes, appron~d at a countywide referendum on tvfarch I 1,1980, and taxed and collected under Chapler 206, Florid,l Stiltulps, as provided in the Cas TZlX Ordinimn>s. 'Tive Cents local Option GilS Tax" 14399/0710000'!5h3.IX 1( \hl ') m('(lns the first 5-cents of the loc;d option gJS tJX levied and received by the County pursuant to Section 1'l6.02S(I)(b), Florida Sliltutes, plus. to the ex lent provided by Supplementill Resolution of the County, ,1I1V additional local option gilS lax received b\' the County pursuant to Section 336.025(1)(b), Ftonda ,"tillules, and pledged b\' the County pursuant 10 Supplementat Resolution. "Six Cents Local OptHm GilS fax" means tht.' first 6-cents of the locilJ option gas tax levied and received by the County pursuant to Section .136.025(1)(a). Floridil Stillutes. plus. 10 the extent provided by Supplemental Resolution 01 Ihe County, any ildditional loeill option gas tax received by the County received pursuant 10 Section 336.02S(I)(a), Florida Statu II's, ilnd pledged by the County pursuant to Supplemental Resolution. "ConstJtutlOnaJ Gas Tax" means the two-cent lUl'l tax imposed pursuant to Article XlI, Section 9(c), Florida Constitution, and Sections 206,4] and 206,47, Florida Statutes. See "GAS TAX REVENUES" herem for more information. THE BONDS SHALL NOT BE OR CONSTITUTE GENERAL OBLIGATIONS OR INDEBTEDNESS OF THE COUNTY AS BONDS WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION, BUT SHALL BE SPECIAL OBLIGATIONS OF THE COUNTY, PAYABLE SOLELY FROM AND SECURED BY A LIEN UPON AND PLEDGE OF TIlE PLEDGED FUNDS IN ACCORDANCE WITH THE TERMS OF THE RESOLUTION. NO IIOI.DER OF ANY BOND OR ANY INSURER SHALL EVER HAVE THE RIGHT TO COMPEL THE EXERCISE OF ANY AD VALOREM TAXING POWER TO PAY SUCH BOND, OR BE ENTITLED TO PAYMENT OF SUCH BOND FROM ANY MONEYS OF THE COUNTY EXCEPT FROM THE PLEDGED FUNDS IN THE MANNER PROVIDED IN THE RESOLUTION. Uniform Commercial Code The Bonds issued under the Resolution shall be and have all the qualities and incidents of JwgntiLlblp instruments under the lilW merchant and the UCC. In 2001, the Florida Legislature adopted rl'vi;.;ions to Florida's UCC relating to secured transactions. Under the revised uec, transfers by hP\'l'fnments and governmentalullits continuE' to remain exempt from the provisions of Florid<l's UCC. Funds and Accounts Tht' County covenanted and agreed in the Resolution to establish with one or more banks, trust \Ompanil's or other entities in thl' State of Florida, which is l'Iigible under the laws of Stich State to receive hlllds of the County, special funds to be known JS the "Construction Fund," the "Revenue Fund," the I h'ht Service Fund" and the "I~l'b<ltp Fund." The County shaJI maintain in the Revenue Fund two ,)C([llmts: thl' "Restricted Revenue Account" and the "Unrestricted Revenue Account." The County shall Ill,lllltain in the Debt Service Fund four accounts: the "Interest Account," the "Principill Account," the '.Bond Amortization Account," and the "Reserve Account." Moneys in the aforementioned funds and ;KCOtllltS, other than the Rebate Fund and thl' Unrestricted Revenue Account, until applied in accordance \\.lth the provisions of the r~esollltion, shall be subject to a lien and charge in favor of the Bondholders dnd for the further security of such Bondholders. The County may at an)' time and from time to time appoint one or more depositories to hold, for II It-' bprwfit of the Bondholders, anyone or more of the funds, accounts and SUb<1CColmts established by till' f\t'soJution. Such depository or depositories shall perform at the direction of the County the duties of tIll' County in depositing, transferring <lnd disbursing moneys to and from each of such funds and ,J{"ClHm!s set forth in the ResolutlOll, and all records of such depositary in performing such duties shall be ('!'<'Il dt llll H'<lSOflJble times to inspection by tht.' Coullty and its ..lgl'nt ilnd employces. An\' sllch ! I ~qq/07/o{lO(}9!:jh3J)()C\.6) III depositary shzdl be J bank or trust company duly authorized to exercise corporate trust powers and subject to examination by federal or ~iate authority, of good standing, Jnd be qualified under applicable State Jaw as a depositor}' Construction Fund The Construction Fund shall be used only lor payment 01 the Cost 01 the Projects. Moneys in the Construction Fund, untit applied in payment 01 any item 01 the Cost 01 a Prolect in the manner provided in the Resolution, shall be held in trust by the County and shall be subject to a lien and charge in lavor of the Ilolders of the Bonds and for the further security of such Holders. There shall be paid into the Construction Fund the amounts required to be so paid by the provisions of the Resolution, and there may be paId into the Construction Fund, at the option of the County, any moneys received for or in connection with a Project by the County from any other SOurce. The County shall estabtish within the Construction Fund a separate account for each Project, the Cost 01 which is to be pa,,1 in whole or in part out 01 the Construction Fund. The "Series 2005 Account" of the Construction Fund was established by the Resolution, from which Costs of the 2005 Project shall be paid. The proceeds of insurance maintained pursuant to the Resolution against physical loss of or damage to a Project, or of contractors' performance bonds with respect thereto pertaining to the period of construction tlwreof. shall be deposited into the appropriate account of the Construction Fund. f\ny moneys received by the County from the State or from the United States of America or any agencies tht'rcof for the purposc of financing part of the Cost of a Project may be deposited into the appropriate <ll'COllnt of the Construction Fund and used in the same manner as other Series 2005 Bond proceeds are used therein; provided that separate accounts or subaccounts may be established in the ConstnKtioll Fund for moneys received pursu;:mt to the provisions of this paragraph whenever required by Fl'dl'ral or Stilte Jaw. TIll' Countv covenanted in the f..;csolutiol1 that the acquisition, construction and installation of l'i1ch Project will be completed \\'ithout delilY and in Jccordance with sound engineering practices. The County shall make disbursements or paymenfs from the Construction Fund to pay the Cost of a Project upon the filing with the Clerk of documents and/or certificates signed by .m Authorized Issuer Officer, stating with respect to eJch disbursement or paynwnt to be made: (1\) the item number of the payment, (B) thl' name and address of the r,'rson to whom payment is dul'. (C) the amount to be paid, (D) the COJlstruction Fund account from which payment is to be made, (E) the purpose, by general classification, for which pJyml'nt is to be mJde and thJt Stich purpose qualifies for payment from aJl of the Gas Taxes (or, in the allerniltin', an Authorized IsslIer Officer states that payment of costs associated with sUt'h purpose will not \.jobte the Act), and (F) that (I) each obligation, item of cost or expense mentioned therein has been propt'rly incurred, is In payment of J part of the Cost of a Project and is a proper charge against the account of the Construction Fund from which payment is to be made and has not been the basis of any previous disbursement or payment, or (2) each obligation, item of cost or expense mentioned therein has been paid by the County, is a reimbursement of a part of the Cost of a Project, is a proper charge against thp account of the Construction Fund from which payment is.to be made, has not been theretofore reimbursed to the Coullty or othenvise been the basis of <my previous disbursement or payment and the County is entitled to reimbursement thereof. The Clerk shall retain all such certificates of the 1\uthorizt'd Issuer Officers for such period of limp as required b~' Jpplicable law. The Clerk shall 14,99/07 /OO()(),)5f,U)()( \"1 It rnJkp aVJil<lble the documents and/or certificates at all reasonable times for inspection by any Holder of (ln~' of the Series 2005 Bonds or thl' age'nt or representativE' of any J lolder of any of the Serlps 2005 Bonds. Notwithstanding any of the other provisions of the Resolution, to the t'xtent that other moneys an' not available therefor, amounts in In Jccount of the Construction Fund with respect to any Series of Bonds shall be applied to the payment of principal and interest on such Series of Bonds when due. The date of completion of acquisition and construction of a Project shall be determined by the Authorized Issuer Officer who shall certify such fact in writing to the Covernmg Body. Promptly after the date of the completion of a Project, and after paying or making provisions for the payment of all unpaid items of the Cost of such Project. the County shall deposit in the following order of priority any bJJJnce of moneys remaining in the Construction Fund in (A) another account of the Construction Fund [or which the Authorized Issuer Officer has stated that there are insufficient moneys present to pay the cost of the related Project. (B) the Reserve Account to the extent of a deficiency therein, and (C) such other fund or account established under the Resolution as shall be determined by the Board, provided the County has received an opinion of Bond Counsel to the effect that such transfer shaJI not adversely affect lhe exclusion, if any, of interest on the Series 2005 Bonds from gross income for purposes of federal income taxation. ZOOS Subaccount of the Reserve Account The Rt'sern' Account consists of {1 reserve {1CCOtmt insurance policy issued by the Insurer in an dlllount equal to $4,515,660.10 (the "2003 I~eser\'e Account Insurance Policy") and cash in the amount of ).I,.SIS,660.10. The Reserve Account, consisting of the 2003 Reserve Account Insurance Policy and such amounts, does .not secure the Series 2005 Bonds. The Countv has established il subaccount of the Reserve Account (the "Z005 Subaccount") to secure the Series 2005 Bonds. Upon the issuance of the Series 2005 Bonds, a reserve account insurance policy to be issued by the Insurer in an <lmount equill tn $ (the "200S Reserve Account Insurance I'oli(''''') shill/ be deposited in the Z005 Subaccount. See "Z005 RESERVE ,\CCOUNT INSURANCE l'l lUCY" hen'in. Such amounts shill I be maintained for the benefit of Holders of Ihe Series Z005 Bonds ;md ^ddition<ll Bonds seclln-'d thereby', Unless and until ^ddltion<ll Bonds are issucd by the County, no further payments shall be required to be Ill<lde into the 2005 Subaccount ilS long as the amount on deposit therein shall equal the Reserve Account Requirement. "Reserve Account Requirement" means, as of any tLlte of calcul<ltion for the Reserve Account, an <lfnOUllt equal to the lesser of (1) !\.Iaximum Annual Debt St'n'ice [or illl Outstanding Bonds secured theH.'by, (2) 125% of the .Jver<1ge Annual Debt Service for all ()utstandlng Bonds secured thereby, or (3) the m<lximum amount Jllowed to be funded from proceeds of lax-exempt obligJtions Jnd invested at an unrestricted yield pursuant to the Code, and will equal S _-------------' with respect to the 2005 Subacrount, upon delivery of the Series 2005 Bonds. The Maximum I\nnual Debt Service is defined in the Resolution to be the largest aggregate "mount of the Annual Debt :-;l'r\'iCt:~ becoming due in any Fiscal Year in which Bonds <lre Outstanding. See '.APPENDJX C- FORM OF TilE I<ESOLUT10N" ""ilched hereto, Moneys in the Z005 Subaccount shall be used only [or the purpose of paying principal, r\mortization Installmpnts and interest on the Series 2005 Bonds when moneys in the Sinking Fund are insufficient therefore. Any monevs withdrawn from thL' 2005 Subaccount must be restored from the first f)l('dged Funds "v'ailable therefore aft\::'f ali required payments have been mJde for the payment of debt >';t'r\'ice, including dt:'licipIlcies fOf prior p<lvnwnts, un tht' Sl'riL's 2005 Bonds on the next payment date, : n'!'lj()7;()()()09~6JDUC"hl ]:2 In the event the 2005 Subaccount contains <It least one Reserve Account InsurancE' Policy and cash, the ca~h shall be drawn down completely prior to any draw on a H.eserve Account Insurance Policy_ The 20(JS Subaccount may be used to secure Additional Bonds issued pursuant to the Resolution. AJternJtively, the County reserves the right to establish separate subaccounts in the Reserve Account for any Series of Additional Bonds for the purpose of securing such Series only. In that case, such Series of Additional Bonds would not be secured by the 2005 Subaccount which secures the Series 2005 Bonds. Disposition of Gas Tax Revenues (A) The County shall promptly deposit upon receipt from the State the Gas Taxes and any additional gas taxes pledged under the Resolution into the Restricted Revenue Account. The moneys in the Restricted Revenue Account sh,,1I be deposited or credited on or before the 25th day of each month, in the following manner and in the following order of priority: (I) Interest Account. The County shall deposit or credit to the Interest Account the sum which, together with the balance in said Account, sh,,1I equal the interest on all Bonds Outstanding .H.TrUl'U and unpilid clOd to JCcrue to the end of the then current calendar month. Moneys in the Interest Account shalt be applied by the County for deposit with the Paying Agents to pay the interest on the Bonds on or prior to the dale the s"me shalt become due. The County shall adjust the amount of the deposit to the Inlt'rest Accollnt not later thiln a month immediately preceding any Interest DJte so as to providl' sufficient moneys in tht' Interest Account to pay the interest on the Bonds coming due on such Interest Date. No further deposit need be made to the Interest Account when the moneys therein are equal tn lhe interest coming due on the Out.standing Bonds on the next succeeding Interest Date. (2) Principill Account. Commencing no later than the month which is one year prior to the first princip<ll due date, the County shaJl next deposit into the Principal Account the sum which, together \vith the balance in said Account, shill! ('yual the principal Jmounts on all Bonds Outstanding due and unpaid and that portion of the principal next due which would have accrued on such Bonds during the then current calendar month it such principal amounts were deemed to accrue monthly (assuming that a year consists of 12 l'quivillellt t-all'ndar months having .10 days each) except for the Amortization Installments to be deposited pursuant to the Resolution in equJI amounts from the next preceding pnncipill payment due date, or, if there be no such preceding payment due date from a date one year preceding the due ddte of such principal amount. Moneys in the Principal Account shall be applied by t1w Countv for deposit with the ('''y,ng Agents to pilV the principill of the Bonds on or prior to the date the sanw shall mature, and for no other purpose. 'n1E' County shall adjust the amount of the deposit to the Principcd Account not Jdter than the month imnll'diately preceding any principal payment date so as to provide sufficient moneys in the PrincipCll Account to pay the principal on Bonds becoming due on such principal payment date. No further deposit need be made to the Principal Account when the moneys thL'rein are equallo the principal coming due on the Outstanding Bonds on the next succeeding princlp<11 payment date. (3) Bond Amortization Account. Commencing in the month which is one year prior to the first AmortizCltion InstJlJment due date, there shall be deposited to the Bond Amortization Account the sum ""hich, together with the balance in such Account, shall equal the Amortization Installments on all Bonds Outstanding duC' and unpaId and that portion of the Amortization Installments of all Bonds Outstilnding nc'\t due \\'hich would havl' accrued on such Bonds during the then current calendar month if such Arnortizatipn Installments \\'l'fl' deellled to accrue mOllthly (assuming that a year consists of 12 HYJ9/07jOOOOlJ;h.1.t l( lCI'hl 11 equivolent (otendar months ho\'ing 30 doys each) in equal omounts from the next preceding I\mortization InstaJIment due date, or, if there is no such preceding Amortization Installment due date, frolll J dilfe one year preceding the due date of such Amortization Installment. Moneys in the Bond Amortization Account shall be used to purchase or redeem Term Bonds in the manner provided in the [,esolution, ono for no other purpose. The County sholl adjust the omount of the deposit to the Bond Amortization Account on the month immediately preceding any Amortization Installment date so as to proviJe sufficient moneys in the Bond Amortization Account to pay the Amortization Installments becoming due on such date, Payments to the Bond Amortization Account shall be on parity with pJyments to the Principal Account. Amounts accumulated in the Bond Amortization Account with respect to any Amortization Instollment (together with omounts accumuloted in the Interest Account with respect to interest, if any, on the Term Bonos for which such Amortization Instollment was established) may be applied by the County. on or prior to the 60th ooy preceding the due date of such Amortization Installment, (a) to the purchase of Term Bonds of the Series and maturity for which such Amortization Installment was O'stobtished, or (b) to the redemption at the applicoble Redemption Prices of such Term Bonds, if then redeemable by their terms. Amounts in the Bond Amortization Account which are used to redeem Term Bonds shall be credited against the next slIcceeding Amortization InstaJlment which shall become due on sllch Term Bonos. The applicoble Redemption Price (or principol omount of mahuing Term Bonds) of any Term Bonds so purchased or redeemed shall be deemed to constitute part of the Bond Amortization Account until such Amortization Installment date, for the purposes of calculating the amount of such Account. As soon as procticobte after the 60th doy preceding the due date of any such Amortization f nstallmL'nt, the County shall proceed to call for redemption on such due date, by causing notice to be given as provided in the Resolution, Term Bonds of the Series and maturity for which such Amortization fnstallmpnt was established (except in the case of Term Bonds maturing on a Amortization InstaJIment date) in such amount as shall be necessary to complete the retirement of the unsatisfied balance of such l\mortizatiOIl Installment. The County shall payout of the Bond Amortization Account and the Interest Account to the appropriate Paying ^gents, on or before the day preceding such redemption date (or maturity date), the JmOllnt required for the redemption (or for the payment of such Term Bonds then maturing), ono such amount sholl be opphed by such Paying Agents to such redemption (or payment). .:\]1 PXpPllSes in connection with the purchase or redemption of Term Bonds shall be paid by the County from the Restricted Revenue l\ccounL (4) Reserve Account. 111t:'rp shall be deposited to the Reserve Account an amount which would enable the County to restore the funds on deposit in the Reserve Account to an amount equal to tlw EeSl'fVe Accounl Requirement applicable thereto. All deficiencies in the Reserve Account must be rnadc up no later than 12 months from the dJte such deficiency first occurred, whether such shortfall was caused by decreJsed market valul' or \vithdrawal ("whether from cash or a Reserve Account Insurance Policy). On or prior to eJch principal payment date and Interest Date for the Bonds (in no event earlier th.Jn the 25th day of the month next preceding such payment date), moneys in the Reserve Account shall be applied by the County to the payment of the principal of or Redemption Price, if applicable, and interest on the Bonds to the extent moneys in the Interest Account, the Principal Account and the Bond i\rnoftization Account shall b{:. insufficient for such purpose. Whenever there shall be surplus moneys in the Reserve Account by reason of <l decreJse in the Reserve Account Requirement or as a result of a deposit in the Reserve Account of a Reserve Account [nsurance Policy or a Reserve Account Letter of ('redit. sllch surplus moneys, to fhe extent practicable, shall be deposited by the COllnty into the Unrestricted Revenue Account. The County shall promptly inform ('ilch Insurer of any draw upon the !\I.',<';('[\'(> I\ccount for purposes of paying the principctl of and interest on the Bonds. ! 1,(N/1I7/1I0009563.DOC\6! I.' Upon the issuance of any Series of Bonds under the terms, limitations and conditions as provided in the Resolution. the County shall lund the Reserve Account in an amount at least equal to the Reserve Account Requirement. Such required amount, il any, shall be paid in full or in part from the proceeds of such Series of Bonds or may be accumulated in equal monthly payments to the Reserve Account over a period of months from the date 01 issuance of such Series 01 Bonds, which shall not exceed 36 months. In the event moneys in the Reserve Account are accumulated as provided above, (a) the amount in said Reserve Account 011 the date 01 delivery 01 the Additional Bonds shall not be less than the Reserve Account Requirement on all Bonds Outstanding (excluding the Additional Bonds) on such date, and (b) the incremental difference between the Reserve Account Requirement on all Bonds Outstanding (excluding the Additional Bonds) on the date 01 delivery 01 the Additional Bonds and the Reserve Account Requirement on all such Bonds shall be 50% lunded upon delivery 01 the Additional Bonds. Notwithstanding the loregoing provisions, in lieu 01 or in substitution 01 the required deposits into the Reserve Account, the County may cause to be deposited into the Reserve Account a Reserve Account Insurance Policy for the benefit 01 the Bondholders in an amount equal to the difference between the Reserve Account Requirement applicable thereto and the sums then on deposit in the Reserve Account, if any. The County may also substitute a Reserve Account Insurance Policy for cash on deposit in the Resen'(' Account upon compliance with the terms of the Resolution. The issuer providing such Reserve Accollnt Insurance Policy shall be eIther (a) an insurer whose municipal bond insurance policies insuring th(' payment, when due, or the principal of and interest on municipal bond issues results in such Issues bClf1g rated in one of the two highest rating categories (without regard to gradations, such as "plus" or "minus" of such categories) by two of the Rating Agencies, or (b) a commercial bank, insurance company or other fin~mci<tl institution which has been assigned a rating by two of the Rating Agencies in one of the two highest rilting categories (without regard to gradations, such as "plus" or "minus" of such CLl tcgories). In the event the Reserve Account contains a Reserve Account Insurance Policy and cash and separatp subaccounts have not been established in the Reserve Account, the cash shall be drawn down completely prior to all)' draw on il Reserve Account Insurance Policy. In the event more than one Reserve Account Insurance rolicy is on deposit in the Reserve Account, amounts required to be drawn thereon sh,lil be dnne OIl a pru-rata basis. The County agreed in the Resolution to pay all amounts owing in regard 10 any I<eserve Account Insurance Policy lrom the Pledged Funds. Pledged Funds shall be applied in accordilnn> with the Resolution, first, to reimburse the issuer of the Reserve Account Insurance Policy for amounts a(h'anced under such instruments, second, replenish any cash deficiencies in the Rescn'e Account, and, third, to pay the issuer of the Reserve Account Insurance Policy interest on <lOlOunts i1dvanced tinder Stich instruments. The Resolution shall not be discharged or defeased while any obligations Llrf' owing in regard to a Reserve Account Insur,mce Policy on deposit in the Reserve Account. The Cotlnty Jgrced in the Resolutiun nut to optionally redeem Bonds unless all amounts owing in regard to a Reserve Account Insurance Policy on deposit in the H.eserve Account have been paid in full. Any consent or i1pproval of any Insurer described in the Resolution shan be required only so long as there <lre Outstanding Bonds secured by a Bond ]nsuri1nce Policy issued by such Insurer which is in full force and effect and the commitments of which have been honored by such Insurer. The term "Paying: Agent" as used in the Resolution for this purpose may include one or more Paying Agents for the Outstanding Bonds. I4J99/07/0000'i.ShJ. IX)( ','r, I J:-; Whenever the amount of cash in the Reserve Account, together with the other amounts in the Debt Service Fund, are sufficient to fully pay all Outstanding Bonds in accordance with their terms (tncJuding principal or applicable "edemplion Price and interest thereon), the funds on deposit in the "eserw Account may be transferred to the other Accounts of the Debt Service Fund for the payment of I he Bonds. The County may also establish a separate subaccount in the Reserve Account for any Series of Additional Bonds and provide a pledge of such subaccount to the payment of such Series of Additional Bonds apart from the pledge provided in the Resolution. Such a Subaccount (i.e., the 2005 Subaccount) has been established for the Series 2005 Bonds. To the extent a Series of Additional Bonds is secured separately by a subaccount of the Reserve Account, the Holders of such Bonds shall not be secured by <Joy other moneys or Reserve Account Insurance Policies in the Reserve Account. Moneys in a separate SUbLlccount of the Reserve Account shall be maintained at the Reserve Account Requirement applicable to such Series of Additional Bonds secured by the subaccount; provided the Supplemental Resolution authorizing such Series of Additional Bonds may establish the Reserve Account Requirement relating to sllch separate subaccount of the Reserve Account at such level as the County deems Jppropriate. Moneys shall be deposited in the separate subaccounts in the Reserve Account on a pro-rata basis. In the event tilt' County shall maintain a Reserve Account Insurance Policy and moneys in such subaccount, the monl'YS sh<lll be used prior to making any disbursements under such Reserve Account Insurance Policy. I\n)' I<eserve Account Insurance Policy and moneys held in such subaccount, shall not be available to the I Jolders of the Bonds not specifically secured by such subaccount. (5) Unrt'stricted Revenue Account. The balance of any moneys after the deposits required <is heretofore described may be transferred, at the discretion of the County, to the Unrestricted Revenue Account or any other appropriate fund or account of the County and may be used for any lawful purpose. (B) Whenever moneys on deposit in the Debt Service Fund are sufficient to fully pay all ()utstt"mding Bonds in accordance with their terms (including principal or applicable Redemption Price ,me! int"rest thereon), no further deposits to the Debt Service Fund need be made. If on any payment date the CdS Tax Revenues are insufficient to deposit the required amount in any of the funds or accounts or It)r any of the purposes provided above, the deficiency shall be made up on the subsequent payment ~LlIl's. The County, in its discretion, may u.se moneys in the Principal Account and the Interest Account !o purchase or redeem Bonds coming due on the next principal payment date, provided such purchase or H'dl'lllption does not adversely affect the County's ability to pay the principal or interest coming due on C;Udl principill payment date on the Bonds not so purchased or redeemed. Additional Bonds No Additional Bonds, payable on a parity with the Bonds then Outstanding pursuant to the J~t'solution, shall be issued except upon the conditions and in the manner provided in the Resolution. rill.' County may issue one or more Series of Additional Bonds for anyone. or more of the following purposes: (i) fina.ncing Ihe Cost of a Project, or the completion thereof, or (ii) refunding any or all ()lIt.c;t~lnding Bonds or of an-,,' SubordinJted Indebtedness of the County. , P '<)j()7j00009563.1)( )(0\-61 If, No such Additional Bonds shall be issued unless the following conditions are complied with: (A) Except as otherwise provided in the Resolution, there shall have been obtained and filed with the County a statement of an Authorized Issuer Officer: (1) stating that the books and records of the County relating to the Gas Tax Revenues and Investment Earnings have been examined by him; (2) selling forth the amount of the Gas Tax Revenues and Investments Earnings which have been received by the County during any 12 consecutive months designated by the County within the 24 months immediately preceding the date of delivery of such Additional Bonds with respect to which such statement is made; and (3) stating that the amount of the Gas Tax Revenues and Investment Earnings received during the aforementioned 12 month period equals at least 1.35 times the Maximum Annual Debt Service on all Bonds then Outstanding and such Additional Bonds with respect to which such statement is made. (B) In the event the County, by Supplemental Resolution, extends the pledge of the Gas Tax Revenues created pursuant to the Resolution to include additional gas tax and such additional gas tax was not in effect during all or a portion of the applicable 12 consecutive month period described in (A) above, then for the purposes of determining whether there are sufficient Gas Tax Revenues to meet the coverage test specified in (A) above, the Authorized Issuer Officer shall adjust the amount of Gas Tax Revenues which were received during the applicable 12 consecutive month period to take into account the additional amount of Gas Tax Revenues such additional gas tax would have generated if it had been in effect for the entire 12 consecutive month period; provided, however, that such adjustment shall only be made if the additional gas tax is in effect on the date the statement of the Authorized Issuer Officer referred to in (A) above is made and such additiOllJI gas tax will remain in effect at least until the final maturity of the Bonus Outstanding at the time of issuance of the Additional Bonds. (C) In the event the County adjusts the County's proportionate share of Gas Tax Revenues and such new proportionate share of Gas Tax Revenues was not in effect during all or a portion of the applicable 12 consecutive month period described in (A) above, then for the purpose of determining whether thC'n~ are sufficient Gas Tax Revenues to meet the coverage fest specified in (A) above, the Authorized Issuer Officer shall adjust the amount of Gas Tax Revenues which were received during the applicable 12 consecutive month period to reflect the amount of Cas Tax Revenues the County would hilve received over such 12 consecutive month period had the County's share of Gas Tax Revenues been distributed based on its new proportionate share. (D) For the purpose of determining the Debt Service in this subsection, the interest rate on addilional parity Variable Rate Bonds then proposed to be issued shatI be deemed to be the Bond Buyer Revenue Bond Index most recently published prior to the sale of such Additional Bonds. (E) For the purpose of determining the Debt Service in this subsection, the interest rate on Outstanding Variable Rate Bonds shall be deemed to be (1) if such Variable Rate Bonds have been Outstanding for at least 24 months prior to the date of sale of such Additional Bonds, the highest average interest rate borne by such Variable Rate Bonds for any 3D-day period, or (2) if such Variable Rate Bonds have not been Outstanding for at least 24 months prior to the date of sale of such Additional Bonds, the Bond Buyer Revenue Bond Index most recently published prior to the sale of such Additional Bonds. (F) Additional Bonds shall be deemed 10 have been issued pursuant to the Resolution the same as the Outstanding Bonds, and ,dl other covenllnts and other provisions of the Resolution (except as to details of such Additional Bonds inconsistent therl'\vith) shall be for the PlluaJ benefit, protection and {4:199/O7/()(){)()')';6,. DOC \'61 17 securing of the Holders of all Bonds issued pursuant to the Resolution. Except as described in the Resolution, all Bonds regJrdless of the time or times of their issuzmce, shall rank equally with respect to their lipll on the Pledged Funds and their sources Jnd security {or payment therE'from \vithout preference of ,my Bonds over any other. (C) In the event any Additional Bonds are issued for the purpose of refunding any Bonds then Outstanding, the conditions of this subsection shall not apply, provided that the issuance of such Additional Bonds shall result in a reduction of aggregate debt service. The conditions of (A) above shall apply to Additional Bonds issued to refund Subordinated Indebtedness and to AdditlOnal Bonds issued for refunding purposes which cannot meet the conditions of this paragraph. (H) So long as any Outstanding Bonds are insured by Ambac Assurance Corporation, such as the Series 2003 Bonds, the County will not issue any Variable Rate Bonds without the written consent of ;\mbac Assurance Corporation. Subordinated Indebtedness The County will not issue any other obligations, except under the conditions and in the manner provided in the Resolution, payable from the Pledged Funds (or any portion thereof) or voluntarily create or cause to be created any debt, lien, pledge, assignment, encumbrance or other charge having priority to p[ being on <l parity with the lien thereon in favor of the Bonds and the interest thl:.'H'OI1. The County may (It Clny time or from time to time issue evidences of indebtedness payable in whole or in part out of the PL-dged Funds and which may be secured by a pledge of such Pledged Funds; provided, however, th01t such pledge shall be. and shall be expressed to be, subordinated in all respects to the pledge of the Pledged Funds created by the Resolution. The County shall have the right to covenant with the holders from time to time of Jny Subordinated Indebtedness to add to the conditions, limitations Jnd restrictions under which any Additional Bonds may be issued pursuant to the H.esolutiun. The County agrees to pay promptly any Subordinated Indebtedness as the same shaH become due. Hooks and Records 111e County will keep books and records of the rect:.'ipt of the Gas Tax Revenues in accordance IVlth generally accepted O1ccounting principles, and Holders of Series 2005 Bonds shalt have the right O1t all reasonable times to inspect the records, accounts and d()ta of the County relating thereto. Collection of Gas Tax Revenues; No Impairment The COllnty covenants to do all things necessary on its pJrt to maintain its eligibility to receivE' the full amount of Gas Tax Revenues which are required by the Act. The County will proceed diligently to perform legally and effectively all steps required on its part in the levy and collection of Gas Tax !\l'venues and shaH exercise all legJlly available remedies to enforce such collections now or hereafter available under State law. The ptedging of the Pledged Funds in the manner provided in the Resotutlon shall not be subject tn repeal, modification or impairment by any subsequent ordinance, resolution or other proceedings of tht' Co\'en1ing Body, except as otherwise provided in the Resolution. '1.'O<)/()7/000()<)5(,,1.DOC, bl IK Accession of Subordinated Indebtedness to Parity Status with Bonds The County may provide for thl' accession of Subordinated Indebtedness to the status of complete parity with the Bonds. jf (A) the County sh,,11 meet "It the requirements imposed upon the issuancE' of Additiona] Bonds by the Resolution, assuming, for purposes of said requirements, that such Subordinated Indebtedness shall be Additional Bonds. and (8) the Reserve Account, upon such accession, shall contain an amount equal to the Reserve Account Requirement in accordance with the Resolution. If the aforementioned conditions are satisfied, the Subordinated Indebtedness shall be deemed to have been issued pursuant to the Resolution the same as the Outstanding Bonds, and such Subordinated Indebtedness shall be considered Bonds for all purposes provided in the Resolution. Investments Moneys on deposit in the Construction Fund, the Restricted Revenue Account and the Debt Service Fund shall be continuously secured in the manner by which the deposit of public funds are authorized to be secured by the Jaws of the State. Moneys on deposit in the Construction Fund, the Restricted Revenue Account and the Debt Service Fund, other than the Reserve Account, may be Invested and reinvested in Authorized Jnvestments maturing not later than the date on which the moneys therein will be needed for the purposes of such fund or account. Moneys on deposit in the Reserve Account may be invested or reinvested in Authorized Investments which shall mature no later than ten years from the date of investment. All investments shedl be valued at cost; provided, that the amounts on deposit in the Reserve Account shall be valued at the market price thereof. Investments in the Reserve Account shall be valued by the Cotlnty on an amount basis of iYfarch 1 of each year. Any and 011 income received by the County from the investment of moneys in each account of the Construction Fund, the Interest Account, the Restricted Revenue Account and the Reserve Account (to the extent such income and the other ilmounts in the r~eserve Account does not exceed the Reserve Account Requirement applicable thereto), shall be retained in such respective Fund or Account. Any and all income received by the County from the investment of moneys in the Reserve Account (only to the extent such income and other amounts in the I~est'rve Account exceeds the Reserve Account Requirement), the Principal Account emu the Bond Amortization Account shall be deposited in the Interest Account. Nothing contained in the Resolution prevents any Authorized Investments acquired as investments of or security for funds held under the Resolution from being issued or held in book-entry form on the books of the Department of the Treasury of the United Stales. Separate Accounts ll1e 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 ilIlocated to the various funds, accounts and subaccounts estClbJished in the Resolution may be invested in iJ common investment pool, provided that adequate accounting records are maintained fo reflect and control the restricted allocation of the moneys on deposit therein and such inyestments for the various purposes of such funds, accounts and subaccounts as provided in thl:' Resolution. Th(' designiltion and establishment of the various funds, accounts and subaccounts in and by the Resolution shall not be cOllslnled to require tilt' e~liJblishment of ;10-,"' completely independent, self- 14399/07 /n0009Ci6, DC lCv61 19 bJIJl1cing funds as such term is commonly defined anu useu in governmental accounting, but rather is intended solei}' to constitute Zln earmarking of certain revenues for certain purposes and to establish certain prloritics for application of such revenues as provided in the Resolution. Amendment of Resolution withoul Consent of Bondholders Certain amendments to the ResolulJon are permitted without Bondhotder consent with the prior written consent of the Insurer or Insurers of Bonds, provided that such insured Bonds, at the time of the odoption of the amendmmt, shall be rated by the raling agencies which shall have raled the Bonds at the time such Bonds were insured no lower than the ratings assigned thereto by such rating agencies on the date of being insured. See "APPENDIX C - FORM OF THE RESOLUTION" allached hereto. Control by Insurer in Case of Event of Default Upon the OCcurrence and continuilnee of an Event of Default, each Insurer, if such Insurer has not foiled to comply with its payment obtigalJons under its Bond Insurance Policy. shall be deemed to be the sole Holder of the Bonds it insures for purposes of (A) directing and controlling the enforcement of all rights and remedies with reSpl'ct to such Series of Bonds, <my waivef of an Event of Default and removal of any trustee, and (B) exercising certJin voting rights or prIvileges Of giving certain consents or directions or laking cntain other actions. See "APPENDIX C - FORM OF THE RESOLUTION" attached Iwrl'to. GAS TAX REVENUES General The "Gas Tax (\('\,enues" consist of revenues received by the County from five sep,uJtc taxes referred to in the Resolution as thl' "Seventh Cent C<lS Tax," the "Ninth Cent GJS Tax," the "Five Cents I.()l'al Option Gas TJx", the "Six Cents LocZlJ Option C,Js Tax," and the "Constitutional Cas Tax", and any ()thef gas tax imposed Jnd/or receivcd by the County \vhich is specifically pledged by the County pursuant to the Hesolution or ZI SupplL'lllt:'nti"d Resolution. Each of the current components of the Cas Tax f\.l'\'(,IllIl'S 1S described herein. IRemainder of page intentionally left blankl : !~q(!!II7/()O()09s6-,.nOC\'61 cO lIistorical Gasoline Sales in the County The volume of motor and special fuel sold in the County is set forth belo"v for the years indicated: COLLIER COUNTY, FLORIDA NUMBER OF TAXABLE GALLONS SOLOI1l State Fiscal Year Ended June 30 Motor Fuel ~iesel Fuel Totat Taxable Gallons 2000 200] 2002 2003 2004 115,012,5] 1.1 ] 19,469,969.5 ] 29,940,347.6 133,5]2,1394 ]40,10],657.6 ] ],689,949..1 11,850,377.5 ]2,070,857.] ]2,46],080.5 13,528,890.6 ]26,702,460.2 13],320,347.0 ]42,0] ],204.7 ]45,973,2]9.9 ]53,630,548.2 Source: Horida Department of Revenue. III The number of gallons shown represents fuel from which components of the Gas Tax Revenues arp derived. Seventh Cent Gas Tax In Ceneral. In addition to other taxes, the State imposes a tax of om:o-cent per net gallon of motor fuel, which tax is statutorily designated as the "County Fuel Tax." "Motor fuel" is "all gasoline products or any product blended \vith gasoline or any fuel placed in the storage supply tank of a gasoline-powered motor vphicle." The County Fuel Tax is referred to in the Resolution as the "Seventh Cent Cas Tax." Co/Jectj()n and Distribution. The Florida Department of Revenue ("FDOR") is responsible for colJecting the County Fuel Tax and, after deducting the expenses of coJIection, administration, enforcement clnd di.stribution (Iimilt'd to 2% of collections) and after deducting a 7.3IYo service charge to the Cenera' R,>velllJe Fund of the State of Florida, FOOR is required to divide the proceeds of the tax and distribute till' same to u)Lmties in the State on a monthly bJsis. IRemainder of page intentionally left blank) {4399/07 /OOOO'!.Sh3. 1)( X' \(, I 21 The formulJ for distribution for the County Fuel Tax is as foJJows: 1. First, the distribution factor for each county is calculated on an JJ1J1UJJ basis as folJmvs: 1/4 x County Are~ State Area + 1/4 x County Population State Population + 1/2 x Number 01 Motor Fuel Gallons Sold In County Number 01 Motor Fuel Gallons Sold Statewide County's Distribution Factor (Currently 2.06740%) 2. Second, the monthly allocation lor each county is calculated as lollows: Monthty Statewide County Fuel Tax Receipts x County's Distribution Factor County's Monthly Allocation Thus, chimges in rebtive population and in absolute and relative motor fuel sales will affect the amount of County Fuel Tax distributable to a county. Eligibility. All counties are eligible to receive County Fuel Tax revenues. Use of Revenue. County Fuel Tax revenues may be used solely for the acquisition of rights-of-way; the construction, reconstruction, operation, maintenance and repair of transportation LlCilities, rOilds, and bridges therein; or the reduction of bonded indebtedness incurred by a county (or speci.d rOild and bridge distrIcts within such county) for road imd bridge or other transportation pu rposes. [Remainder 01 pagc intentionally Ielt blank) !.IYJ9 /07 /()()()09~63. D( X: v61 22 Statewide Col/ection Data. The fol/owing table summanzes historical County Fuel Tax distributions to Florida counties for the fiscal years of the State ended June 30,1995 through June 30,2004, as reported by FDOR. STATE OF FLORJDA COUNTY FUEL TAX REVENUES DISTRIBUTED STATEWIDE State Fiscal Year Ended fune 30 Total Amount Distributed to the Counties Percentage lncrease (Decrease) ]995 ]996 ]997 ]998 ]999 2000 200] 2002 2003 2004 $60,270,623 59,269,167 59,427,474 62,247,550 70,1 1l,055 80,216,52] 79,377,747 8],108,364 83,340,638 87,450,164 (].7)% 0.3 4.7 ]2.6 14.4 (l.l) 2.2 2.8 4.9 Sou rel': Florida Department of Revenue Collier Countv Revenue Dato. The following toble sets forth historical Seventh Cent Gas Tax revenues for the fiscal yeors ended September 30, 1995 through 2004. COLLIER COUNTY, FLORIDA SEVENTH CENT GAS TAX REVENUES Cuunty Fiscal Year Ended September 30 Seventh Cent Gas T ox Revenues Received(l) Percentage Increase (Decrease) ]995 ]996 ]997 ]998 ]999 2000 2001 2002 2003 2004 $],101,818 ],065,934 ],099,]00 l,l64, 741 1,363,8]4 ],442,775 1,5 Il ,029 ],642,793 ],709.334 1.796,991 (3.3)% 3.] 6.0 ]7.1 5.8 4.7 8.7 4.1 5.] Source: Collier County finance [)ppllrtnlt:'nt III Un;lUdilt'd. 14399107/00(I09S631 Joe \(,1 23 Ninth Cent Gas Tax In Ceneral. In addition to other taxes, each county may impose a tax of one cent per net gallon of motor fuel sold within the county's jurlsdiction. The tax may be levied by either an extraordinary vote of the membership of the county's governing body or pursuant to voter approval in a county-wide ejection. In addition, a tax of one cent per gallon is required to be levied in each county on every net gallon of diesel fuel sold within the county regardless of whether the county is tevying the tax on motor fuel. The term "diesel fuel" means all petroleum distillates commonly known as diesel #2 or any other product blended with diesel or any product placed into the storage supply tank of a diesel-powered motor vehicle. These taxes are colleeti vety referred to as the "Ninth Cent Fuel Tax" and are referred to in the Resolution as the 'Ninth Cent Gas Tax." Forty-three of Florida's sixty-seven counties levy the Ninth Cent Fuel Tax on motor fuel. Counties are not required to, but they may, share the revenue received from the Ninth Cent Fuel Tax with municipalities. The County does not share such revenue with any municipality located within the County. Collection zmd Distribution. FOOR collects the Ninth Cent Fuel Tax and deposits the revenues in Ihe Ninth Cent Fuel Tax Trust Fund. The 7.3% Ceneral Revenue Fund service charge does not apply to tht' Ninth Cent Fuel Tax Trust Fund, although a 0.67% collection allowance is provided for certain ~uppJjers and wholesalers. In Jddition, FOOR is authorized to deduct certain administrative costs from tlw Ninth Cent Fuel Tax Trust Fund. 11w administrative cost deduction is limited to 2% of total collections. Proceeds of the Ninth Cent Fuel Tax are distributed monthly. Elieibility. 1l1cre are no special eligibility requirements for counties wishing to levy the Ninth Cent Fuel Tax. Use of Revenue. Proceeds of the Ninth Cent Fuel Tax flow through the Local Option Fuel Tax Trust Fund. Cenerally, county and municipal governments may use monies received from the Ninth Cent Fuel Tax only for transportation expenditures, defjned as: (a) public trill1sportation oper.ltion and maintenance; (b) roadway <lnd right-of-way milintenance and equipment and structures used primarily for tlw stor<lge ;:md maintenance of stich ('qUlpment; (c) roadway and right-of-way drainage; (d) street lighting; (e) traffic signs, traffic enginening, signalization and pavement markings; (f) bridge mainten,mce and operation; and (g) debt service Zlnd nlfrcnt pxpenditures for transportation capital projects in the foregoing program i1rpas including ttw constructioJl ;lnd reconstruction of roads. rl~<)l)/07/()()()()9S6~.D()C \'hl 2.t Collier County Collection Data. The County has imposed the Ninth Cent Fuel Tax since June I, 1980, and the levy 01 the tax will expire on December 3],2025. As previously noted, the County has not entered inlo an interJocJI agreement .with any municipality for the sharing of the Ninth Cent Gas Tax revenues. The table below sets forth the amount 01 historical Ninth Cent Gas Tax revenues received by the County for the fiscal years ended September 30, ]995 through 2004. COLLIER COUNTY, FLORIDA NINTH CENT GAS TAX REVENUES Fiscal Year Ended Septem ber 30 Ninth Cent Gas Tax Revenues Receivedol Percentage Increase (Decrease) ]995 ]996 ]997 ]998 ]999 2000 2001 2002 2003 2004 $],006,286 ],065,750 ] ,043,736 1,]49,]20 ],] 92,823 ],273,6]6 1,309,8]8 1,420,292 1,447,4]5 ],572,637 5.9% (2.]) 10.] 3.8 6.8 2.8 8.4 1.9 8.7 Source: COJJil'f County Finance DL'piutment II) Unaudited. Six Cents local Option Gas Tax and Five Cents local Option Gas Tax ~!l'ner,lI. Each county in the State is authorized to levy a tax, statutorily referred to as the "Local Option fuel Tax," of between one cent and eleven cents per net gallon on motor fuel sold in such county in the (orm of two separilte levies. The first levy' is a tax of one to six cents and may be authorized in a county hy an ordintlncl' enacted by a majority vote of the governing body of a county or by referendum. Thl' County levies all six cents which levy was approved by the Gas Tax Ordinances. An of Florida's sixty'-sc\,pn counties levy this portion of the LOG'll Option Fuel Tax with sixty-five of the counties levying ilt the Ill<lximum rate of six cents, This portion of the Local Option Fuel Tax is referred to in the Resolution and lwrein as the "Six Cents Loc;:d Option Gas Tax." The definition of Six Cents Local Option Gas Tax in the Resolution includes Jny additional local option gas tax revenues hereafter available pursuant to the Act and pledged by the County pursuant to Supplemental Resolution. TI1E' second levy is a tax of one to five cents which may be authorized in a county by an ordinance enacted by a majority plus one vote of the governing body of a county or by ,referendum. The County levies all fivE' cents which Il~vy was approved by the Gas Tax Ordinances. This portion of the Local Option Fuel TZlX is referred to in the Resolution and herein as the "Five Cents Local Option Gas Tax." The ddinition of Five Cents LOLli Option Gas TZlX in the Resolution includes any additional local option gas 1cJ399/07 /(){)()()')C,6,.I)( ){"61 2S tox reven""s hereolter available pursuant to the Act and pledged by the County pursuant to Supplemental Resolution. Since July I, 1996, each county is stotutorily reguired (previously the levy had been optional) to impose a tax, atso referred to os the "Local Option Fuet Tax," 01 six cents per net gallon on diesel luel sold in such county. The tax of six cents per net gallon on diesel fuel is automaticaJIy levied in each county even though such county may not have imposed a levy on motor luel at all or is not levying the lirst one to six cents tax on motor luel at all or at the lull six cents. Collection and Distribution. FDOR collects the Local Option Fuel Tax in each county and deposits the proceeds into the State's Local Option Fuel Tax Trust Fund. The Local Option Fuel Tax Trust Fund is subject to a 7.3% charge imposed by the State, representing a share 01 the cost 01 general government of the State. This charge is deducted from the Local Option Fuel Tax Trust Fund and is deposited in the General Revenue Fund of the State. In addition, FDOR is authorized to deduct certain auministrallve costs incurred in collecting, administering, enforcing and distributing the proceeds of such tax to the counties in an amount not to exceed 2% of lotal collections lrom the Local Option Fuel Tax rrust fund. The net proceeds collected from the Local Option Fuel Tax are distributed by FDOR to each digible cnunly and the eligible municipillitips therein according to a distribution formula determined at Ihe local level by intl'r/ocal agreement between the county and the municipalities within the county's houndaries representing a majority of the population of the incorporated Jr('<l within the county. If no interlocaJ agreement is established, then the distribution is based on the relative transportation l'xpenditures o{ the county and the muni("ipaJities therein {or the preceding 5 years. There are tnree incorporated municipalities in the County, and pursuant to the Act and the Local OptlOn Gas Tax Resolution, the Six Cents Local Option Gas Tax and the Five Cents Local Option Gas Tax rL'\'cnups arc distributed among the County and the municipalities based on the relative transportation l'xpenditures o{ the COllnty and the municipalities {or the preceding 5 years as {ollows: Recipient Share of Proceeds of Six Cents Local Gas Tax City of Everglades City of l\larco Jsland City of Naples Collier County 0.19% 4.87 10.28 84.66 100.00% Any newly incorporated mUnicipality located in a county levying a Local Option Fuel Tax is entitled to receive <I share of the t<lX revenues. However, the amounts distributed to a new municipality lllilV not materially or adversely affect the rights of holders of outstilnding bonds backed by the Local Option Fuel Tax, and the JffiOunts distributed to the county and each pre-existing municipality may not be reduced below the Zlffiount necessary to pay principal and interest and reserves for principal and interest as required under the coven<lnts of any bond resolution outstanding on the date of incorporation of ;1 new municipillity. I lYI9/07/0000Q5r,300C, 61 26 Eligibility. In order to be eligible to receive a distribution of funds from the Local Option Fuel Tax Trust Fund, each county or municipality must have: (i) reported its finances for its most recently completed fiscal year to the State Department of Banking and Finance as reguired by Florida law; (ii) made provisions for annual postaudits of financial accounts in accordance with provisions of law; (iii) levied, as shown on its most recent financial report, ad valorem taxes, exclusive of taxes levied for debt service or other special millages authorized by the voters, to produce the revenue eguivalent to a millage rate of 3 mills on the dollar based upon 1973 taxable values or, in order to produce revenue eguivalent to that which would otherwise be produced by such 3 mill ad valorem tax, to have received certain revenues from a county (in the case of a municipaJity), an occupational license tax, utility tax, or ad valorem tax, or any combination of those four sources; (iv) certified that persons in its employ as law enforcement officers meet certain gualifications for employment and receive certain compensation; (v) certified that persons in its employ as firefighters meet certain employment gualifications are eIigibh-> for certain compensation; (vi) certified that each dependent special district that is budgeted separately from the generat budget of such county or municipality has met the provisions for annual postaudit of its financial JCCoLInts in accordance with law; and (vii) certified to FOOl{ that it has complied with certain procedures regarding the establishment of the ad valorem tax millage of the county or municipality as reguired by law. Any funds otherwise undistributed because of ineli!:,..-jbility of a county or municipality shall be distributed to the eligible governments WIthin the applicable county in proportion to other monies distributed pursuant to Section 336,025, Florida Statutes. Use of Revenue. Generally, county and municipal governments may use monies received from the Local Option Fuel Tmst Fund only for transportation expenditures, defined as: (a) public transportatlon operation and maintenance; (b) roadway and right-of-way maintenance and equipment and structures used primarily for the storage and maintenance of such equipment; (c) roadway and right-of-way drainage; (d) street lighting; (e) traffic signs, traffic engineering, signillization and pavement markings; (f) bridge lllilintenance ,md oJ.-k'ration; and 14399/07/00009S6., IX K\'61 r -, (g) debt service and current expenditures for transportation capitat projects in the foregoing program areas including the construction nnd reconstruction of roads. Specific to the Five Cent Local Option Cas Tax only, the authorized use of such monies is limited by statute to (i) transportation expenses included in the capital improvements element of the County's comprehensive plan, or Oi) for expenditures needed to meet immediate local transportation problems and for other transportation-related expenditures that JTe critical for building comprehensive roadway networks by local governments. A county or municipality may not issue bonds payable from the Local Option Fuel Tax more frequently than once per year. The County represents that it has been in compliance with the statutory eligibility requirements for the Local Option Fuel Tax in the past and that it has covenanted in the Resolution to do so in the future. Collier Countv Revenue Data. The County has levied a Six Cents Local Option Gas Tax since September I, 1985 and a Five Cents Local Option Cas Tax since January 1, 1994, and it currently levies the Six Cents local Option Cas Tax of six cents upon every gallon of motor fuel and diesel fuel sold in the County and the Five Cents local Option Cas Tax of five cents upon every gallon of motor fuel (but not diesel fuel) sold in the County. Under the current Cas Tax Ordinances, the tevy of the Six Cents local Option Cas Tax and the Five Cents local Option Cas Tax will both expire on December 31, 2025. (Remainder of page intentionally left blankJ !B99/07 /00009')63. DOC \'61 2B The following table sets forth the amount of historical Six Cents Local Option Cas Tax revenues received by the County for the fiscal years ended September 30, 1995 through 2004. COLLIER COUNTY, FLORIDA SIX CENTS LOCAL OPTION GAS TAX REVENUES County Fiscal Year Ended September 30 Six Cents Local Option Cas Tax .Revenues ReceivedJI} Percentage Increase (Decrease) ]995 ]996 1997 1998 1999 2000 2001 2002 2003 2004 $4,546,831 5) 18,248 4,365,244 5,244,625 4,996,124 5,563,378 5,813,115 6,353.390 6,485,103 7,354,762 12.6% (147) 20.1 (4.7) 11.4 4.5 9.3 2.1 13.4 Source: Collier County Finance Department 11) Unaudited. [Remaindl'r of page intentionally left blank I 14J99/07/00009563. DOC\'6 I 29 The following table sets forth the amount of historical five Cents Local Opbon Gas Tax revenues rt'C('iwd by the County for the fiscal years ended September 30,1995 through 2004. COLLIER COUNTY, FLORIDA FIVE CENTS LOCAL OPTION GAS TAX REVENUES County Fiscal Year Ended September 30 Five Cents Local Option Gas Tax l~e\'enues Received.!]) Percentage Increase {Decrease) 1995 1996 1997 199H 1999 2000 2001 2002 2003 2004 $3,651,186 3,854,252 3,768,855 3,931,426 4,023,839 4,192,302 4,436,686 4,830,335 4,919.661 5.609,54] 5.6% (2.2) 4.3 2.4 4.2 5.8 8.9 1.8 14.0 SOllrce: Collier County Finance Department !I. Uniludited. Constitutional Gas Tax In General. Article Xlt Section 9(c) of the Florida Constitution (196R), as Jmendcd, provides for the kvy of a lax, initially designated as the "second gas tax," of two cents pe[ gallon upon gasoline and other like products of petroleum clOd an equivalent tax upon other SOurces of energy used to propel llW((lr vehicles (the "ConsWutionaJ Fuel Tax"). It was renamed the "constitutional gas tax" pursuant to Ch,lpter 83-3, Laws of Florida, and then renamed "constitutional fuel tax" pursuant to Chapter 95-417, I ,aws uf Florida. The Florida Legislature implemented the constitulional provisions pursuant to Sections 2(1".11 .1I1d 206A7, Florida Statutes. The Florida Statutes do not explilitly authorIze a county to pledge as a Source of security for a b(lnd issue the Constitutional Fuel Tax it receives from the State. Although the County has no reason to !1l']ll'\,(' it mOlY occur, it is possibk' that the FloridJ Legislature could amend the statutorily authorized uses (A the Constitutional Fuel Tax to restrict the uses of the moneys, including without limitation a pwhibilion for use of those funds to make debt service payments on local indebtedness such as the Series 2(1(1; Bonds, or could alter the manner in \vhich proceeds of the Constitutional rueI Tax are allocated and dil1lll11Sh the amount allocable to the County. If the Florida Legislature did attempt to take such action, tIll' (\)unty would vigorously challenge such an Jction 011 the grounds of "impairment of contract" under tlw Flnrida Constitution. Hmvever, it is unclear as to whether the County would be successful on such a rh.]iit'nge. The County is not JWJfP of Jny instance in which the Florida Legislature has evpr taken ilction ,llh-lT~l'I!" impacting il revenup source pledged to bonds without explicit stahl tory authority without also pn1\iding a substitute revenue Source for the affected bonds. Nevertheless, thpre can be no assurance {I ",,, '117/11111109561. DOC\'61 .)() given to the holders of any Series 2005 Bonds that the Florida legislature will not amend the Act in some manner which would haw the affect of repealing, impairing or amending the rights of the holders of such Series 2005 Bonds with respect to, the Constitutional Fuel Tax revenues. Collection and Distribution The proceeds of the Constitutional Fuel Tax are collected by the FDOR and are transferred monthly to the State Board of Administration of Florida (the "SBA") for distribution to the counties, after certain deductions bv the SBA, described below. The SBA deducts reasonable administrativE' costs from the proceeds and aJlocates the balance of the proceeds to the counties as follows: 1. First, a distribution factor for each county is calculated on an annual basis as foHows: 1/4 x County Area State Area + 1/4 x County Population State Population + 1/2 x Constitutional Fuel Tax collected on retail sales and use in the county Constitutional Flll'l Tax collected in all counties in previous fiscal year County's Distribution Factor (Currently 2.06740f}"o) 2. Second, the monthly allocation for each county is calculated as foHows: Statewide ConstitutlonJl CJS Tax Receipts (less wilsonJble costs) x County's Distribution Factor County's Monthly Allocation J. Third. the Monthly Allocation IS distributed to the County as follows: 80% x County's Monthly Allocation Amount retained by SBA for debt service(l) 20% x County's tvIonthJv AllocJtion Amount distributed to County (1) H~,tJin('d only if the SBA is servicing bonds pledging the Constitutional Fuel Tax; otherwise such amount is distributed to the County. Before the proceeds ore distributed, the monthly allocation is divided into two parts: (1) the monthly JlloCJtioll multiplied by 80%, which represents the amount needed to meet debt service requirements on bonds administered by the SBA pledging the Constitutional Fuel Tax; and (2) the monthly allocation multiplied bl' 20%, which represents the amount translerre<;l to the County. The SBA uses the 80'10 portion to mect the debt service requirement of SBA-administered bond issues that pledge the Constitutional Fuel Tax. If the SBA determines that the 80% portion is not enough to cover the debt service requiremt'llt, it \vilJ withhold some of thE' 20% portion for th<lt purpose. Othenvise, the 20~i, portion is remitted dirf'cfly to the County. If a county hilS not pledged the proceeds for the Constitutional {4J99/07/00009.Sf>J. tJC )(~\'f>1 1t Fuel Tax for bonds administer"d by SBA, th" full amount of both th" 80% portion and the 20% portion is distributed directly to the County. The County currently has outstanding bonds pledging its Constitutional Fuel Tax that JTC' administerl'd by the SBA (the "Seril'S t979 Bonds"). Intl'rest and principal on the Series 1979 Bonds are paid prior to any of the 80% portion of the Constitutional Fuel Tax revenues being distributl'd to the County. Thl'rcfore, any rderence contained herein to Constitutional Gas Tax revenues "received" by the County refers to revenul'S received by the County after such interest i:md principal payments are madE' on th., Series 1979 Bonds. Upon retirement of the Seril's 1979 Bonds (currently scheduled for December 1, 2008), the full monthly allocation of the Constitutional Cas Tax will be distributl'd to, and received by, the County. The table below sets forth the projected interest and payment schedules for the Series 1979 Bonds. Payment Principal Outstanding Interest Total Debt Date Payments Balance(l) Payments Service June ],2005 $ 0 $2,620,000 $75.980 $75,980 December 1,2005 600,000 2,020,000 75,980 675,980 June 1,2006 2,020,000 58,580 58.580 December 1,2006 640,000 ],380,000 58,580 698,580 June 1,2007 1,380,000 40,200 40,200 Decem ber I. 2007 680.000 700,000 40,200 720,020 June 1,2008 700,000 20,300 20,300 Decpmber 1,2008 700,000 0 20,300 720,300 (I) Outstanding Balance cakulall'd after application of Principal Payment. ~()lIr((:': Collier County Finance Dt'partIlll'nt Eligibility. Only counties art' eligible to receive the Constitutional Cas Tax. Use of Revenue. Constitutional Fud Tax funds are to be used for the acquisition, construction ,Hld maintenance of roads. TIlt' k>ml "maintenance" includes periodic maintenance and routine maintenancl' and may include Ih" construction and lUstallation of traffic signals, sidewalks, bicycle paths and landsCtlping. fRemtlindl>r of page intentionally left blank] : I-"N/07/00009Sh1.DOC\'61 '0 .'" Collier Countv Revenue Data. The table below sets forth the amount of historical Constitutional Cas Tax revenues recei\'ed by the County after payment of debt service on the Series 1979 Bonds, for the fiscal years ended September 30,1995 through 2004. COLLIER COUNTY, FLORIDA CONSTITUTIONAL GAS TAX REVENUES Fiscal YeaT Ended September 30 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: Collier County Finzmce Department (I) Unaudited. Constitutional Gas Tax Revenues Received.clJ $2,155,345 2,196,866 2,265,474 2,406,46 ] 2,510,662 2,630,614 2,810,931 3,044,866 3,169,913 3,353,908 Percentage Increase (Decrease ) 1.9% 3.1 6.2 4.3 4.8 6.9 8.3 4.1 5.8 [Remainder of page intentionally left blank) 14399/07/00009;(".1 Xl(' \'1> I 3.'3 Aggregate Gas Tax Revenues The table below sets forth the historical total Gas Tax Revenues (the sum of the Seventh Cent Gas Tax revenues, the Ninth Cent Gas Tax revenues, Ihe Six Cents Local Option Gas Tax revenues, the Five Cents Local Option Gas Tax revenues and the Constitutional Gas Tax revenues), received by the County for the fiscat years ended September 30, ]995 through 2004. COLLIER COUNTY, FLORIDA GAS TAX REVENUES Total Gas Tax Revenues.f!) Fiscal Y COr Ended September 30 Revenues Received Percentage Increase (Decrease) 1995 1996 ]997 ]998 ]999 2000 2001 2002 2003 2004 $] 2.461 ,466 I 3,3OJ ,050 12,542,409 13,896,373 14,087.262 15, lO2.685 ]5.88],579 t 7,291.676 17.731,426 ] 9,687,839 6.7% (5.7) lO.8 1.4 7.2 5.2 8.9 2.5 ]1.0 SlllJfU..': ColIier County Finance DepzlTtnwllt Iii Unaudited The amount of GllS Tax Revenues received by the County is dependent upon numerous factors, including the JmOllnt of motor fuel and diesel fupj sold in the StJte and the County and the population of tllv County rel.J.tive 10 the population of the State. Furthermore, incorporation of additional tTlullicipzliities within the County and the rel.1tivE' populiltion sizc of the County and municipalities wllhin Ihe County could affect the amount of Cas Tax Revenues distributable to the County. The amount of Cas Tax Ren'nues received by the Coullty may be adversely impacted by changes 1n the supply or dClllzmd for or Ihe price of motor fuel, spcci.11 fuel or diesel fuel. Most of the factors that affect the ,1l1lOtlnt of Cas Tax I\evenu('s distribut<lble to the County are beyond the control of the County. [Remainder of page intentionally left blank I :1 ',<;<1/117 !O0009563.IJOC \'61 ')...( Pro Forma Debt Service Coverage 111e following table sets forth pro-forma debt service coverage ratio for the Series 2003 Bonds and the Series 2005 Bonds based on the Gas Tax Revenues received by the County for the fiscal year ended September 30, 2004. PRO-FORMA DEBT SERVICE COVERAGE Maximum Annual Debt Servicew Gas Tax Revenues for the Fiscal Year Ended September 30.2004 Pro-Forma Debt Service Coverage $14,343,716 $19,687,839 J.37x Source: Collier County Finance Department (I) This figure is comprised of the combined Maximum Annual Debt Service based on the actual debt service on the Series 2003 Bonds and the estimated debt service on the Series 2005 Bonds as provided by the Financial Advisor, assuming an estimated principal amount of $JOO,OOO,OOO. an pstirnJted lnll.::' interest cost Tate of 4.13%, a final maturity of June 1, 2025, and the principal "mounls sho\vn on the COvt'r page hereof. FINANCIAL GUARANTY INSURANCE POLICY General The following information under this heading has been furnished by Ambac Assurance Corporation (the "Insurer" or "i\mbac") for use in Ihis Official Statement. Reference is made to "APPENDIX D - FOIUvl OF FlNANClAL GUARANTY INSURANCE POLICY" attached hereto for a specimell of the Insurer's policy. Payment Pursuant to Financial Guaranty Insurance Policy Amb.1c has made .1 commitment to issue a financial guaranty insurance policy (the "Financial GUilranty Insurance Policy") rplaling to the Series 2005 Bonds effective as of the date of issuance of the Series 2005 Bonds, Under the terms of the Financial Guaranty Insurance Policy, Ambac will pay to The Bank of New York, in New York, New York or any successor thereto (thp "Insurance Trustee") that portion of the prinClpilt of and interest on the Series 2005 Bonds which shilt! become Due for Payment but shat! be unpaid by reason of Nonpayment (as such terms are defined in the Financial Guaranty Insurance Policy) by the County. Ambac will make such payments to the Insurance Trustee on the later of the date on which such principal and interest becomes OUI:'-' for Payment or within one business day following the date on which Ambac shall have received notice of Nonpayment from the Paying Agent. The insurance will extend for the term of the Series 2005 Bonds and, once issued, cannot be canceled by;\mbac. 'TIle Financial CU<1ranty Insurance Policy will insure payment only on stated maturity dates and on m<lndatory sinking fund installnwnt dates, in the case of principilJ, and on stated dates for payment, in the case of interest. If the St'ries 20D,r) J)onds become subject to Ill<lnd,ltory redemption and insuffil;pnt funds are H1g9/07 /00009561. DOC \'61 y; "v"iJ"ble for redemption of atl outstanding Series 2005 Bonds, Amb"c witl remain obligated to p"y princip"l of and interest on outstanding Series 200S Bonds on the originatly scheduled interest and principal payment dates including mandJtory sinking fund redemption dates. In the event of any acceleration of the principal of the Series 2005 Bonds, the iJk'ured payments witl be made at such times and in such amounts as would h"ve been made had there not been an accelerJtion. In the event the Paying Agent has notice that any payment of principal of or interest on an Series 2005 Bond which has become Due for Payment and which is made to a Holder by or on behalf of the County has been deemed a preferentiat transfer and theretofore recovered from its registered owner pursuant to the United States Bankruptcy Code in accordance with a final, nonappealable order of a court of competent jurisdiction, such registered owner witl be entitled to payment from Ambac to the extent of such recovery if sufficient funds arC' not otherwise JvaiJable. TIu> Financial Guaranty Insurance Policy does not insure any risk other than Nonpayment~ as defined in tbe Financial Guaranty Insurance Policy. Spelifically, the Financial Guaranty Insurance Policy does not cover: 1. payment on acceleration, as a TPSUlt of a call for redemption (other than mandatory sinking fund redemption) or as a result of <lilY other advancement of maturity. 2. payment of any rccIt:mption, prepayment or acceleration premium. 3. nonpClymcnt of principal or interest caused by the insolvency or negligence of any Paying Agent or Registrar. Jf it becomes necessary to call upon the Financial Cuaranty Insurance Policy, payment of principal requires surrender of Series 2005 Bonds to the Insurclnce Trustee together with an appropriate in.<;trument of assignment so as to permit ownership of such Series 2005 Bonds to be registered in the name of Ambac to the l'xtl'nt of the payment under the Financial Guaranty Insurance Policy. Payment of interest pursuant to the FinilIlci.11 GUilranty InslIrClrlce Policy requires proof of Holder entitlement to interest payments and an appropriate assignment of the Holder's right to payment to Ambac. Upon payml'nt of the insurance bl'nefits, Ambac will become the owner of the Series 2005 Bond, appurtenant Coupon, if any, or right to paymenf of prinlipal or interest on such Series 2005 Bond and will be fully subrogated to the stJrn'ndeling Holder's rights 10 payment. 111(' insllrzmcc provided by the Financial Guaranty insurance Policy is not covered by the Florida Insurance Cuaranty Assoliatioll. Arnbac Assurance Corporation Ambac Assur<tnce Corporation C'Ambac") is a Wisconsin-domiciled stock insurance corporation regulateJ by the Office of the Commissioner of Insurance of the State of Wisconsin and licensed to do business in 50 states, the District of Columbia, the Territory of Guam, the Com,monwealth of Puerto Rico and Ihl' US VIrgin Isbnds. with admitted ass<'Is of approximatelv $8.329,000,000 (unaudited) and statutory capital of approximatelv $5,224.000,000 (ullallditl'd) as of December 31, 2004. Statutory capital consists of i\mbac's policy'holders' surplus ilnd statutory contingency reserve. Standard & Poor's Credit 14199/07 jOOIlO'!S61.1 )()C\'61 '16 Markets Services, a Division of The McCraw-Hili Companies, Moody's Investors Service and Fitch Roling' have each assigned a tripJe-A financial strength rating to Ambac. Ambac has obtained a ruling from the Internal Revenue Service to the effect that the insuring of an obligation by Ambac will not affect the treatment for federal income tax purposes of interest on such obligation and that insurance proceeds representing maturing interest paid by Ambac under policy provisions substantially identical to those contained in the Financial Guaranty Insurance Policy shall be treated for federal income tax purposes in the same manner as if such payments were made by the County. Ambac makes no representatiun regarding the Series 2005 Bonds or the advisability of investing in the Series 2005 Bonds and makes no representation regarding, nor has it participated in the preparation of, the Official Statement other than the information supplied by Ambac and presented under this heading "FINANCIAL GUARANTY INSURANCE POLICY". Available Information The parent company of Ambac, Ambac Financial Group, Inc. (the "Company"), is subject to the informolional requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act''), and in accordance therewith files reports, proxy statements and other information with the Securities and Exchange Commission (the "SEC). These reports, proxy statements and other information can be read ond copi,'d at the SEes public reference room at 450 Fifth Street, N.W., Washington, D.C. 20549. Please call Ihe SEe: at 1-800-SEC-0330 for further information on the public reference rOOm. The SEC maintains an internet sill' at !It{rJ:/h.m.uw.sec.vo'(J that contains reports, proxy and information statements and other infonnation regarding companies that file electronically with the SEe. including the Company. These reports, proxy statements and other information can also be read at the offices of the New York Stock Exchange, lnc. (till' "NYSE"), 20 Broad Street, New York, New York 10005. Copies of Ambac's financial statements prepared in accordance with statutory accounting stand.Jrds are aViliJJble from Ambac. The address of Ambac's administrative offices and its telephone number are One State Street Plaza, 19th Floor, New York, New York 10004 and (212) 668-0340. Incorporation of Certain Documents by Reference 'nll' following documents filed by the Company with the SEC (File No. 1-10777) are incorporated by referf'ncp in this Offi(i<11 Statement: 1. 'n,e Company's Annual Report on Form IO-K for the fiscal year ended December 31, 2004 and filed on March IS. 2005; 2. The Company's Current Report on Form 8-K dated AprilS, 2005 and filed on Aprilll, 2005; 3. The Company's Current Report onFonn 8-K dated and filed on April 20, 2005; and 4. The Companv's Current Report on Form 8-K dated May 3, 2005 and filed. on May 5, 2005. 11199/07/00()()l)SH I)OC\'61 17 All documents subsequently filed by the Company pursuant to the requirements of the Exchange Act after the date of this Official Statement wiII be available for inspection in the same malUler as described above in "A vail able Infonnation". THE INFORMATION RELATING TO AMBAC CONTAINED ABOVE HAS BEEN FURNISHED BY AMBAC. 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 COUNTY HAS NOT MADE ANY INVESTIGATION INTO THE FINANCIAL CONDITION OF AMBAC, AND NO REPRESENTATION IS MADE AS TO THE ABILITY OF AMBAC TO MEET lTS OBLlGA TlONS UNDER THE FINANCIAL GUARANTY INSURANCE POLICY. 2005 RESERVE ACCOUNT INSURANCE POLICY The Resolution requires the establishment of the 2005 Subaccount in an amount equal to $. . The Resolution authorizes the County to obtain a reserve account insurance policy in place of fully funding the 2005 Subaccount. Accordingly, application has been made to Ambac for the issuance of a reserve account insurance policy (the "2005 Reserve Account Insurance Policy") for the purpose of funding the 2005 Subaccount. The Series 2005 Bonds will only be delivered upon the issuance of such 2005 Reserve Account Insurance Policy. The premium on the 2005 Reserve Account Insurance Policy is to be futly paid at or prior to the issuance and delivery of the Series 2005 Bonds. The 2005 Reserve Account Insurance Policy provides that upon the tater of (i) one (1) day after receipt by Ambac of a demand for pavment executed by the Paying Agent certifying that provision for the payment of principal of or Interest on the Series 2005 Bonds when due has not been made or (ii) the interest payment date specified in the Demand for Payment submitted to Ambac, Ambac will promptly deposit funds with the Paying Agent sufficient to enable the Paying Agent to make such payments due on the Series 2005 Bonds, but in IlO event exceeding the SUTety Bond Coverage, as such term is defined in the 2005 Reserve Account Insurance Policy. Pursuant to the terms of the 2005 Reserve Account Insurance Policy, the Surety Bond Coverage is ,lUtomatically reduced to the extent of each payment made by Ambac under the terms of the 2005 Reserve Account Insurance Policy and the County is required to reimburse Amhac for any draws under the 2005 EpseTve Account Insurance Policy with interest at a market rate. Upon such reimbursement, the 2005 Reserve Account Insurance Policy is reinstated to the extent of each principill reimbursement up to but not exceeding the 2005 Reserve Account Insurance Policy Coverage. 111e reimbursement obligation of the County is subordinate to the County's obligations with respect to the Series 2005 Bonds. In the event the amount on deposit or credited to the 2005 Subaccount, exceeds the amount of the 2005 Reserve Account Insurance Policy. any draw on the 2005 Reserve Account Insurance Policy shall be made only after all the funds in the 200S Subaccount have been expended. In the event that the amount on deposit in, or credited to, the 2005 Subaccount, in addition to the amount available under the 2005 Reserve Account Insurance Policy, includes amounts available under a letter of credit, insurance policy, surety bond or other such funding instnlment (the" Additional Funding Instnllnent"), draws on the 2005 Reserve Account Insurance Policy and the Additional Funding Instnlment shall be made on a pro rata bJsis to fund the insufficiency. i .tYI9/07/0000lJ563. [JOe \'61 3H The 2005 Reserve Account Insurance Policy does not insure against nonpayment caused by the insolvency or negligence 01 the Paying'Agent. The insurance provided by the 2005 Reserve Account Insurance Policy is not covered by the Florida Insurance Guarantv Association. See "FINANCIAL GUARANTY INSURANCE POLICY' herein for more inlormation regarding Ambac and its parent company. THE INFORMA nON RELA nNG TO AMBAC CONTAINED ABOVE HAS BEEN FURNISHED BY AMBAC NO REPRESENTATION IS MADE BY THE COUNTY OR THE UNDERWRlTERS AS TO THE ACCURACY OR ADEQUACY OF SUCH INFORMATION OJ, THAT THERE HAS NOT BEEN ANY MATERIAL ADVERSE CHANGE IN SUCH INFORMATION SUBSEQUENT TO THE DATE OF SUCH INFORMATION. NEITHER THE COUNTY NOR THE UNDERWRlTERS HAS MADE ANY INVESTIGA nON INTO THE FINANCIAL CONDITION OF AMBAC, AND NO REPRESENTATION IS MADE AS TO THE ABILITY OF AMBAC TO MEET ITS OBLlGA nONS UNDER THE 2005 RESERVE ACCOUNT INSURANCE POLICY. [Remainder 01 page intentionally left blank] 14399/07/o0009S63.110C:v6) 19 ESTlMA TED SOURCES AND USES OF FUNDS The table that follows summarizes the estimtlted sources ilnd uses of funds to be derived from the sale of the Series 2005 Bonds: SOURCES: Principal Amount 01 Series 2005 Bonds Original Issue Premium/Original Issue Discount $ TOTAL SOURCES $ USES: Deposit to Series 2005 Account 01 the Construction Fund Costs of IssuanceO) $ TOTAL USES $ iI) Includes linancial guaranty insurance policy premium, 2005 Reserve Account Insurance Policy premium, <:Ind Underwriters' discount, legJJ iJnd other professionJI fees ilnd miscellaneous costs of issuance. [Remainder of page intentionally left blank] !1:>99/07/00009563 DOC\'61 411 DEBT SERVICE SCHEDULE Series 2005 Bonds Combined Year Ended Aru1Ual Senes 2003 Bonds Annual 'line 1 Principal Interest Debt Service Annual Debt Service Debt Service 2006 $ $ $ $9,496,040.00 $ 2007 9,494,240.00 200S 9,494,440.00 2009 9,493,690.00 2010 9,493,305.00 20/1 8,548,9]5.00 20]2 8,550,202.50 2013 8,546,302.50 2014 8,548,507.50 20]5 8,548,397.50 20]6 4,3] ],967.50 2017 4,3]2,567.50 20]S OlO.262.50 2019 0] ],2] 7.50 2020 4,3] ],2] 7.50 2021 4,3] ],987.50 2022 4,3]H25.00 2023 4.3lO,625.00 2024 2025 TOTALS $ $ $ $]24,705,3lO.00 $ IRemainder of page lI1telltionally leit blank] {4399/07 !OOIlIl9561. [)()C \'61 II INVESTMENT POLICY The moneys helJ in the funps Jnd accounts under the Rcsolution may only be invested in ^uthorized Investments_ The investment of surplus funds is currentl:' governed by the provisions of the County's OrdinJnce No. R7-65 and Resolution No. 95-552 which authorize investments for surplus public funds in the permitted investments described in Section 218.415, Florida Statutes. Pursuant to Resolution No. 95-552, the Clerk of the Circuit Court (the "Clerk") has established a written investment policy for slIch 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: I. 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 Federat Agency Securities Not Backed by Full Faith Jnd Credit of US Government, except for Student Loan Marketing Association; 5. Certificates of Deposit - CoIlateralized with US Government Securities or Federal Agencies; o. Repurchase AgreemE'nts; 7. Fixed Income Mutual Funds - CoIlateralized with US Government Securities or Federal Agencies; 8. Domestic Bankers Acceptances ~ Rated "AA" or higher, and inventory based; 9. Prime Commercial Paper - Rated "A-I" and "P-l;" 10, Tax-Exempt Obligations - Rated "AA" or higher and issued by state or local governments; I I. Now ^ccount - Fully collateralized in accordance with Chapter 280. Florida Stahltes (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 ^gencies or US Federal Instrumentalities. b. Pass the Federal Financial Investment Examination Councit (FFIEC) test at time of purchase, ilnd c. }-la\'e an average life uf seven (7) years or less and have ,111 absolute final maturity of no more than fifteen (5) years at zero PSA. The term "zero PSA" means thilt all interest and principal payments are guaranteed to be made by the stated final maturity Zlssuming no prepayments. Specifically prohibited investments inrlude the following: 1. Interest only strips of mortgilged backed securIties; 2. Leveraged bonds; 3. Structured notes or financings other thZln mortgage securities that met'! the provisions of the investment policy (permit calbble and step up COupons); .:t. Variable rilte securihps thZlt set a rate based on all inverse rC'btionship to an index; Zlnd .r;. V ilriable rate debt that sets a Tate based on mOTe than a single index. [ 1~')"!lJ7/0[)[)[)9563DOC\'61 42 The objective of the investment policy is to match investment cash flow and maturity with kno-wn cash n('eus and anticipated cash flow.requirements (i.e., match assets to liabilities) to the extent possibh>. Investment of lunds shall have linal matunties 01 not more than live (5) years, except lor: I. SBA - no statl'd linal mahHity; 2. Certilicates 01 Deposit - ] Year; 3. Repurchase Agreements - 90 Days; 4. Bankers Acceptances - 180 Days; 5. Prime Commercial Paper - 180 Days; 6. Fixed Income Mutuat 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 linal maturity 01 no more than ]5 years at zero PSA; and H. 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. rvfortgage securities shall not be used to match liabilities that are reasonably definable as to amount and disbursement dale. Mortgage securities can only be used to invest funds assotiated with resenT'S or li<lbiJities that are not associatC'J with a specifically identified cash flow schedule. Mortgage securities can be used to prudently enhancc Ihc 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 2005 Bonds are subject to an approving legal opinion 01 Nabors, Giblin & Nickerson, P.A., Tampa, Florida, Bond Counsel, whose approvmg opinion (a form of which is attached hereto as "APPENDIX E - FORM OF BOND COUNSEL OPINtON") will be availabte at the time of detivcry 01 Ole Series 2005 Bonds. Certain legal matters will be passed on lor the COllnty by David C. Weigel. Esq., COllnty Attorney, and Bryant Miller & Olive P.A., Tilmpa, Floricl.l, Disclosure Counsel. Bond Counsel has not been engaged to, nor has it underta:ken to, review (1) the accuracy, completenpss or sufficiency of this OfficiilJ Stiltcment or any other offering material relating to the Series 2005 Bonds; provided, however, that Bond Counsel will render an opinion to the Undenvriters of the Senes 2005 Bonds (upon which opinion only th,' Underwriters may rely) relating to the lairness 01 the presentation of certain statements contained herein under the heading "TAX EXEMPTION" and certain statements which summarize provisions of Ihe f{('solution, the Series 2005 Bonds, and federal tax law, and (2) the compJiJnce with any federal or state law with regard to the sale or distribution of the Series 2005 Bonds. 14399(07(00009063 J)( JC \61 13 L1TIGA TION There is no pending or, to the knowledge of the County, any threatened litigation against the County of any nahu€' whatsoever which in any \,...ay questions or affects the validity of the Series 2005 Bonds, or any proceedings Of transactions relating to their issuance, sale, execution, or delivery, or the adoption of the Resolution, or the pledge of the Pledged Revenues. Neither the creation, organization or existencC', 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 a lawsuit originally filed on January 10, 2003, in the Circuit Court for the Twentieth Circuit, Collier County. The case is styled Century Development of Collier County, Inc., et al. v. Jeb Bush, et al., Case No. 03-1 17-CA-HTH. The suit, which also names the ITldlvldual members of the State of Florida Administration Commission as defendants, has been brought by Century Development of Collier County, Inc., Joseph Defrancesco, Ricardo A. Haylock and Mildred Havlock, Francis D. Hussey, Mary Pat Hussey, and Anne Kornfeld, as class representatives for apf'roximately 400 to 500 persons owning property in that area of the County known as North Belle Meilde. The plaintiffs seek monetary relief from the Board for the purported inverse condemnation of property in North Belte Meade thilt allegedly results from the BOilrd's enactment of on ordinance and comprehensive plan amendments. The plaintiffs contend that the ordinance and comprehensive plan amendments imposed il moratorium on the North Belle Meade properties, the effect of which was a temporary deprivation of all or subst<mtially all benefilial use of such properties, including but not I IInIled to certilin mining rights, The plalTltiffs did not identify in the Complaint the amount of damages heing sought. On F(bruary 24, 2004, both the County and the Administration Commission fiJed motions 10 dismiss. The lawsuit was subsequently dismissed for lack of prosecution and then was refiled by the plaintiffs on September 8,2004. On November 19, 2004, the County served a motion to dismiss the refiled complaint and disposition of that motion is pending, Based upon the allegations as currently pled, the Bo,lrt! has a reasonable likelihood of prevailing. At this time, however, the County is unable to predict wlH't1wr and how the complaint may be amended ;md, therefore, is unable to predict whether the plaintiffs \vill be successful in this action and, if successful, the extent of the Board's ultimate liability. IloIVl'ver. in light of the foct thilt the Holders of the Bonds (including the Series 2005 Bonds) have a first lic'n upon the Gas Tax Revenues, \vhether or not the plaintiffs are successful, any potential liability is not (''<peeted to affect the Coullty'S Jbility to pay the principal and inlerest on the Series 2005 Bonds, For Tlll're information about the Gas Tax Revenues, see "SECUR1TY FOR THE BONDS" and "GAS TAX "EVENUES" herein. The County Mimager received approximately 558 purport(ld claims under the Bert J. Harris, Jr. I'rivilte Property Protection Act, Chapter 70, Floridil Statutes, on or about July 21,2004. These purported rl,lims. which in the ilggregilte illlege ilpproximatply $220 million in damages. potentiillly relate to the ISSlIl'S in the Century Del'clopmcllt I<n'7suit as we-II as potential additional issues concerning land use rcgllIations imposed in approxim<ltC'ly the same geographic area pursuant to state law. At this very preliminary stage, the County is reviewing these individual purported claims but is unable to predict ,>vhether the claims will lead to suits and whether, in such an event, any of the claims might be successful Dr the potential extent of the County's ultimate liability. However, in light of the fact thilt the Holders of till' Bonds (including the Series 2005 Bonds) have il firsllien upon the Cas Tax -Revenues, whether or not cbmlants are successful in any suits which Ill<lY be filed, any potential liability is not experted to affect thl' ('oLlnty's ilbiIity to ray the rrincipzlf and int('r('~t on the SerIes 2005 Bonds. For more information ,1bl'lIt the GilS Tilx RevPnlIes. see "SECU!,ITY FOR THE BONDS" and "CAS TAX REVENUES" herein. ! I ~qq!07/00009S63.DOCv61 1-1 In addition, on December 22, 2004, Van-Dev. lnc. and Vanderbilt Beach Associates, Ltd. delivered a purported claim under the Bert j. 'Harris, Jr. Private Property Protechon Act, Chapter 70, Florida Statules, to the office of the County Attorney. The purported claim, which alleges to be approximately $lR million 10 damages, relates to the enactment of certain land use restrictions which have allegedly adversety impacted certain vested rights of the claimants, Van-Dev, Inc. and Vanderbilt Beach Associates, Ltd. At this very preliminarv stage, the County is reviewing this purported claim but is unable to predict whether the claim will lead to a suit and whether, in such an event, the claim might be successful or the potential extenl of the County's ultimate liabitity. However, in light of the fact that the Holders of the Bonds (including the Series 2005 Bonds) have a first lien upon the Gas Tax Revenues, whether or not the claimants are successful in any suit which may be filed, any potential liability is not expected to affect the County's ability to pay the principal and interest on the Series 2005 Bonds. For more information about the Gas Tax Revenues, see "SECURITY FOR THE BONDS" and "GAS TAX REVENUES" herein. The County experiences other claims, litigation, and various legal proceedings which individucJlly are not expected to have a material adverse effect on the operations or financial condition of the County, but may, in the aggregate, have a material impact thereon. In the opinion of the County Attorney, however, except as noted above, the County will either successfully defend such actions or otherwise resolve such mi'1tters without any materi;)1 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 SL,lI securities of the County except by an offering circular containing full and fair disclosure of aB defaults liS to principal or interest on its obligations since December 31, 1975, as provided by rule of the Flonda Department of Banking and Finance (the "Department"). Pursuant to Rule 3E-4oo.003, Florida Administrative Code, the Depilftmt'nt has required the disclosure of the amounts and types of defaults, any Icg;:tl proceedings resulting from such defaults, whether a trustee or receiver has been appointed over the assets of the County, and certain additional financial information, unless the County believes in good faith that such information would not be considered material by a reasonable investor. The County is not <lnd has not been in debult on ,my bond issuf'd since December 31, 1975 which would be considered milteri.1l by il reasonilble investor. TAX EXEMPTION Opinion of Bond Counsel In the opinion of Bond Counsel, the form of which is included as "APPENDIX E _ FORM OF BOND COUNSEL OPINION" attached hereto, Ihe interest on the Series 2005 Bonds is excludable from gross income for federal income tax purposes 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 2005 Bonds is taken into <1ccount in determining adjusted current earnings for purposes of computing the federi'll alternativE' minimum tax imposed on corporations pursuant to the Jntemal Revenue Code of 19R6, as ampndcd (the "Code"). Failure by the County to comply subsequently to the issuance of the Series 2005 Bonds with (('rtain requirements of the Code, regarding the USE', expenditure and investment of Series 200:'1 Bonds procceds and the timely paynwnt of certain investment earnings to 14399/07 /0000956.1.DOC 'v61 -15 the Treasury of the United States, may cause interest on the Series 2005 Bonds to become includable in gross income for federal income tax purposes retroactive to the date of issuance. The County has covenanted in the Resolution to compJy with aU provisions of the Code necessary to, among other things, maintilin the exclusion from gross incomp of interest on the Series 2005 Bonds for purposes of federLl} income tax.Jtion. In rendering its opinion, Bond Counsel has assumed continuing compliance with such covenants. Internal Revenue Code of 1986 The Code contains a number of provisions that apply to the Series 2005 Bonds, including, among other things, restrictions relating to the use or investment of the proceeds of the Series 2005 Bonds and the pavment of certain arbitrage earnings in excess of the "yield" on the Series 2005 Bonds to the Treasury of the Umted Slates. Noncompliance with such provisions may result in interest on the Series 2005 Bonds bping included in gross income fOT federal income tax purposes retroactive to their date of issuance. Collateral Tax Consequences Except as described above, Bond Counsel will express no opinion regarding the federal income tax consequences resulting from the o\vneTship of, receipt or accrual of interest on, or disposition of, the Series 2005 Bonds. Prospectiw purchasers of Series 2005 Bonds should be aware that the ownership of Senes 2005 Bonds may result in other collateral federal tax consequences. For example, ownership of the Sen,'s 2005 Bonds may result m collaleral tax consequences to various types of corporations relating to (1) denial of interest deduction to purchase or carry such Series 2005 Bonds, (2) the branch profits tax, and (3) the inclusion of interest on the Series 2005 Bonds in passive income for certain Subchapter S corporations. In tlddition, the interest on the Series 2005 Bonds milY be included in gross income by recipients of certain Soci,]1 Security and Railroad Retirement benefits. PURCHASE, OWNERSHIP. SALE OR DISPOSITION OF THE SERIES 2005 BONDS AND THE RECEIPT OR ACCRUAL OF THE INTEREST THEREON MAY HAVE ADVERSE FEDERAL TAX CONSEQUENCES FOR CERTAIN INDIVIDUAL AND CORPORATE BONDHOLDERS, INCLUDING, BUT NOT LIMITED TO, THE CONSEQUENCES REFERRED TO ABOVE. PROSPECTIVE BONDHOLDERS SHOULD CONSULT WITH THEIR TAX ADVISORS FOR INFORMATION IN THAT RECARD, Florida Taxes In the opinion of Bond Counset the Series 2005 Bonds and the income thereon are exempt from all present intangible personal properly taxes imposed pursuant to Chapter 199, Florida Statutes. Other Tax Malters Interest on the Series 2005 Bonds may be subject to state or local income taxation under "pplicable state or local laws in other jurisdictions. Purchasers of the Series 2005 Bonds should consult their own tax advisors ilS to the income tax status of interest on the Series 2005 Rands in their particular ~t<1te or local jurisdiction. During recent years, legislative propOStlls have been introduced in Congress, and in some cases t'nacted, that <lItered cert<lin federal ttlX consequences resulting from the ownership of oblig<1tions that <Ire I ~nqq/07 /00009563 DOC \'61 46 similar to the Series 2005 Bonds. ]n some cases, these proposals have contained provisions that altered these conseeJuences on a retroactivE' basis. Such alterations of federal tax consequences may have affected the market value of obligations similar to the Series 2005 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 2005 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 2005 Bonds. Tax Treatment of Original Issue Discount Bond Counsel is further of the opinion that the difference between the principal amount of the Series 2005 Bonds maturing _ through ~ inclusive and on _ (collectively the "Discount Bonds") and the initial offering price to the public (excluding bond houses, brokers or similar persons or organizations acting in the capacity of Underwriters or wholesalers) at which price a substantial amount of such Discount Bonds of the same maturity was sold constitutes original issue discount which is excludable from gross income for federal income tax purposes to the same extent as interest on the Series 2005 Bonds. Further, such original issue discount accrues actuarially on a constant interest rate basis over the term of each Discount Bond and the basis of each Discount Bond acquired at such initial offering price by an initial purchaser thereof wiJI be increased by the amount of such accrued original issue discount. The accrual of original issue discount milY be taken into account as an increase in the amount of tax- exempt incoml: for purposes of determining various other tax consequences of owning the Discount Bonds, even though there will not be a corresponding cash payment. Owners of the Discount Bonds arc advised that they should consult with their own advisors with respect to the state and local tax consequences of owning such Discount Bonds. Tax Treatment of Bond Premium The difference between the principal amount of the Series 2005 Bonds maturing on _ through ~ inclusiVt' and on _ (collectively, the "Premium Bonds") anclthe initial offering price to the public (excluding bond houses, brokers or similar persons or organizations acting in the capacity of underwritt?rs or \vholesalers) Jt 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 actuarizllly 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 imtial 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 i1 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. RATINGS Fitch "atings ("Fitch"), Standard & Poor's "atings Croup ("S&P") and Moody's Investor Service ("ivtoody's") havp <lssigned their municip<ll bond ratings of "AAA," "AAA" and "Aaa," respectively, to the 14399/07/0000<J56:1 [)( lev61 47 Series 2005 Bonds with the understanding that upon delivery of the Series 2005 Bonds, the Financial Guaranty Insurance Polin- w,1t be issued by Ambac. In addition, Fitch, S&P and Moody's have assigned underlying ratings of "/\+," "A" and "A2," respectively, without giving any regard to Financial Guaranty Insurance Policy. The ratings reflect only the views of said rating agencies and an explanation uf the ratings may be obtained onJy 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 withdrawat of any of such ratings, may have on adverse effect on the market price of the Series 2005 Bonds. An explonation of the significance of the ratings Con be received from the rating agencies, at the following addresses: Fitch Ratings, One State Street Plaza, New York, New York 10004, Standard & Poor's Ratings Services, 55 Water Street. New York, New York 1004] and Moody's Investors Service, 99 Church Street, New York, New York 10007-2796. FINANCIAL ADVISOR The County has retained Public Financial Management, Inc, Fort Myers, Florida, as Financial Advisor in connection with the County's financing plans and with respect to the authorization and is,uance of the Series 2005 Bonds. The Financial Advisor is not obligated to undertake and has not undertaken to make an independent verification or to assume responsibility for the accuracy, completeness, or fairness of the information contained in the Official Statement. The Financial Advisor did not participate in the underwriting of the Series 2005 Bonds. The Financial Advisor may receive a fee for bidding investments for certain proceeds of the Series 2005 Bonds. AUDITED FINANCIAL STATEMENTS The General Purpose Financial Statements of the County for the fiscal year ending September 30, 2004, and report thereon of KP1vlG LLP (the "Independent Certified Public Accountants") are attached hereto as "APPENDIX B - AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED SEPTEMBEI, 30, 200'1." Such statements speak only as of September 30,2004. Such statements, including the report of KPMG LLP, have been included in this Official Statement as public documents and the consent of KPMC LLP to include such documents herein was not requested. 'n,e Series 2005 Bonds are payable solely from the Pledged Funds as described in the Resolution and herein and the Series 2005 Bonds are not otherwise secured by, or payable from, the general revenues of the County. See "SECURITY FOR THE BONDS" herein. The General Purpose Financial Statements are presented for general information purposes only. UNDERWRITING The Senes 2005 Bonds are being purchased by and (collectively, the "Underwriters") at an aggregate purchase price of $ (which equals the f'rinripilI amount of the Series 2005 Bonds, plus il premium of $ , less original issue discount of S and less Underwriters' discount of $ ). The Underwriters' obtigations are subject to rertilin conditions precedent contained in the Official Notice of Sale which was prepared by the County <lt1d llwy will be obligated to purchase <:III of the Series 2005 Bonds if any Series 2005 Bonds are purchased. ! l~q'l/07/o(J009'i63DOC\'61 48 The Series 2005 Bonds may be offered and sold to certain dealers (including dealers depositing such Series 2005 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 Underwriters. CONTINGENT FEES The County has retained Bond Counsel, the Financial Advisor and Disclosure Counsel with respect to the authorization, sale, execution and delivery of the Series 2005 Bonds. Payment of the fees of such professionals and an underwriting discount to the Underwriters are each contingent upon the issuance of the Series 2005 Bonds, ENFORCEABILITY OF REMEDIES The remedies available to the owners of the Series 2005 Bonds upon an event of default under the Resolution, the Financial Guaranty Insurance Policy, and the 2005 Reserve Account Insurance Policy 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 bankruptcv code. the remedies specified by the Resolution, the Series 2005 Bonds, the Financial Guaranty Insurance Policy, and the 2005 Reserve Account Insurance Policy may not be readily available or may be limited. The various legal opinions to be delivered concurrently with the delivery of the Series 2005 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, rcorgi"lT1ization, insolvency or other similar laws affecting the rights of creditors enacted before of after such detivery. See "APPENDIX C - FORM OF THE RESOLUTION" attached hereto for a description of ('\'enls of default and remedies. CONTINUING DISCLOSURE The County has covenanted for the benefit of the Series 2005 Bondholders to provide certain !inancial information and operating data relating to the County and the Series 2005 Bonds in each year, and to provide notices of the occurrence of (ertain enumerated material events. 'The County has agreed to file annual financial information and operating data and its audited financial statements with each nationally recognized municipal securities information repository then approved by the Securities and Exchange Commission (the "NR!vISlRs"), as well as any state information depository that is established in the State (the "SID"). Currently, there ore no such SIDs, The Countv has agreed to file notices of certain enumerated material events, when and if they occur, with the NRMSIRs or the Municipal Securities RuJemoking Board, and with the SIDs, if any. In lieu of filing onnuol finoncial information ond operating dato, audited financial statements and notices of certain material events with the NRMSlRs and the SID, if any, the County is permitted to file such information with a central post office designated by the Securities and Exchange Commission as a location that satisfies the Rule (as defined below) (such location o "CPO') Filings to the Municipal Securities Rulemaking Board (the "MSRB':) are not permitted to be made to a CPO in lieu of filing with the MSRB. The specific nature of the financial information, operLlting dzda, Jnd of the type of events which trigger a disclosure obligation, LInd other detaIls of the undert.1king are described in "APPENDJX F _ !439Q;07 100009561. DOC\61 49 FORM OF CONTINUING DISCLOSURE CERTIFICATE" attached hereto. The Continuing Disclosure Certificate shall be executed by the County prior to the issuance of the Series 2005 Bonds. These covenants have been made in order to assist the Underwriters in complying with the continuing disclosure requirements of Rule 15c2~12 promulgated by the Securities ilnd Exchange Commission (the "Rule"). With respect to the Series 2005 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 has never failed to comply with any prior agreements to provide continuing disclosure information pursuant to the Rule. ACCURACY AND COMPLETENESS OF OFFICIAL STATEMENT The references, excerpts, and summaries of all documents, statutes, and information concerning the County and certain reports and statisticat data referred to herem 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 2005 Bonds, the security for the payment of the Series 2005 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, 330] East Tamiami Trail, Buitding F, Naples, Florida 34112, telephone: (239) 774~8383 or the County's Financial Advisor, Public Management. Inc, Fort Myers, Florida, telephone (239) 939~3009. Any statements made in this Official Statement involving matters of opInion or of estimates, \.vhether or nof 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 Stafement nor any statement that may have been made verbally or in writing is to he construed i1S a contract with the owners of the Series 2005 Bonds. The appendices attached hereto are integral parts of this Official Statl'ment and must be read in their entirety together with all foregoing statements. IRemainder of page intentionally left blankl 11J 99 /07 /00009563. DOC: viol ,r)() AUTHORIZA nON OF OFFIClA L STATEMENT The execution and delivery of. this Official Statement has been duly authorized and approved by the County. At the time of delivery of the Series 2005 Bonds, the County will furnish a certificate to the effect that nothing has come to their allention which woutd lead it to believe that the Official Statement (other than information herein related to Ambac, the Financial Guaranty Insurance Policy, the 200S Reserve Account -Insurance Policy, DTC, the book-entry only system of registration and the information contained under the caption "TAX EXEMPTION" as to which no opinion shall be expressed), as of its date and as of the date of delivery of the Series 2005 Bonds. contains an untrue statement of a material fact or omits to stale a material fact which should be included therein for the purposes for which the Official Statement is intended to be used, or which is necessary to make the statements contained therein, in the light of the circumstances under which they were made, not misleading. BOARD OF COUNTY COMMISSIONERS COLLJER COUNTY, FLORIDA By: Chair, Board of County Commissioners Collier County, Florida 1-1399/07/00009563. DOCv61 'il APPENDIX A GENERAL INFORMATION REGARDING COLLIER COUNTY, FLORIDA The following information concerning Collier County, Florida (the "County") has been supplied by the County and is included only for purposes of supplying general information regarding the County. The Series 2005 Bonds are secured by the Pledged Funds as described in the Official Statement. General Information The County was established in ] 923 by the legislature of the State of Florida (the "State") from portions of Lee and Monroe Counties. Its territariallimits, 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. The County has a 2004 population of 292,466. Principal industries within the County include wholesale and retail trade, tourism, agriculhIre. forestry, fishing, cattle ranching and construction. The 2000 U.s. Census showed an increase in the poputation of the County of 65% between the years] 990 and 2000. Board of County Commissioners The Board of County CommIssioners (the "Board") is the principal legislative and governing body of the County. The BOilrd 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 ;:md their expiration of terms of office are: Commissioner Office T elm Expires Fred W. Coyle Frank Halas Jim Coletta Donna Fiillil Tom Henning Chair Vice Chilir Commissioner Commissioner Commissioner November, 2006 November, 2006 November, 2008 November, 2008 November, 2008 County Manager The chief administriltive officiill of the County is the County Manager. This official is directly responsible to the Board for administration and operation of four administrative divisions under the Board and for execution of all Board policies. The County Manager directs the administrative divisions for Community Development Jnd Environmental Services, Public Services, Public Utilities, Administrative Services and Transportation Services. The County Manager is also responsible to the l30ard for the prepariltion of budgets and for the control of expenditures of departments under his supervIsion throughout the budget yeilr. Budget Process The Budget Director, as the Countv's Budget Officer, begins the budget process each February for the ensuing fiscal Yf'ar (October I to Spptpmber 30) with the distribution of budget request forms and 14399/1l7/1l1l1l09563.DOCv61 1\~t instructions to departments and division heads. County division heads and elected officers submit theIr proposed expenditures beginning in April for compilation by the Budget Officer no later than July I 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 I. 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, 2005 was adopted by the Board on September 23, 2004. Final millage rates are adopted, usually by late September, and the County's Tax Collector prepares tax bills for mailing on or after November I. 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, os amended, and such chapter provides that expenditures in excess of total fund budgets ore unlawful. Annual Audit Florida law requires that an annual post audit of each county's accounts and records be completed within six months of the end of each fiscal year by 0 firm of independent certified public accountants retained and paid for by the County. The County retained the firm of KPMG LLP to undertake the audit of its financial statements for the fiscal year ended September 30, 2004, which are included as APPENDIX B - "Audited Financial Statements of Collier County for Fiscal Year Ended September 30, 2001" attached to this Offioal Statement. 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: County PopulJtion 1960 1970 1980 1990 2000 2010' 2020' ]5,753 38,040 85.971 152,099 251,377 357,200 457,700 POPULATION TRENDS Population Percentage Increase 141.YYo 126,0 76,9 65.2 42.1 28.1 State Population 4.951,560 6,791,418 9,746,961 12,938,071 15,982,378 18,978,400 21.807.100 Population Percentage Increase 37.1% 435 32.7 23.5 18.7 14.9 United States Population 179,323,175 203,302,031 226,504,825 250,410,000 274,634,000 308,936,000 335,805,000 Population Percentage Increase 13.4% 11.4 10.6 9.7 125 8.7 'tEstimates on County and State population use medium estimates of population growth. Source: Collier County, Florida; Bureilu of Census; and the University of Florida, College of Business Administr<ltion, Bureau of Economic and Business Research, DiVIsion of Population Studies. 14399/07/(J(J(11I9.'i6.J. DOC \'61 1\-2 Most of the growth of Collier County is due to migration. As of April 1, 2002, the estimated median age of the County's population was 45.2 years according to the 2004 Florida Statistical Abstract, University of Florida. The majority of the population is over the age of 18, with the age category 15-44 comprising 33.3% of the overall population. COLLIER COUNTY EMPLOYMENT BY MAJOR INDUSTRY September 30,2004 Industry Total Firms. Emplovee Count(1) 61 4,019 657 12,061 2,134 14.236 1,305 6,450 178 4,558 1,008 4.379 5,343 45,703 547 7,928 125 4,069 193 2,550 170 1,007 479 2,795 260 1,807 31 2,211 -11l 2.160 1,916 24,527 19 679 45 832 22 11,017 86 12,528 105 4,259 1,521 14,799 273 2,543 319 3,282 435 2,528 ~ --2J 2.661 27.464 10 006 JlDl22 Hotds and Other Lodging Health Care and Social Services Profession<11 and Business Services Finance, Insurance and Real Estate Arts, Entertainment and Recreation Services Services ~ Other Services Eating and Drinking Places Food Stores ^uto D('JleTs and Service Stations 1 {orne Funliture and Furnishings Retoit Trade - Other Apparel and Accessory Stores General Merchandise Stores Building Hardware and Garden Retail Trade Federal Covernment State Government Local Government Covernrnent Agriculture, Forestry and Fisheries Construction rV1anufJcturing Trzlnsportahon, Communication and Public Utitities Wholesale Trade Mining Other (I) A \'Crage number of people employed in 2004, ~ounT: Collier County Finance Department; Florida Department of Labor & Employment Security; Bureau of Labor Ivlarket Information 1'5-202 I\eport. i. I 19'i !O7/00009563. DOC \'61 1\-3 COLLIER COUNTY EMPLOYMENT (1994-2003) State of County Florida Labor Unemployment Unemployment Year Force. Employment Unemployment Rate Rate ]994 80,566 73,979 6,577 8.2 6.8% ]995 8],500 75,839 5,66] 6.9 5.4 ]996 83,140 78,3]6 4,824 5.8 5.] ]997 87,526 83,115 4,411 5.0 4.8 ]998 92,044 88,224 3,820 4.2 4.3 ]999 94,862 9],342 3,250 3.7 3.9 2000 ] 00,339 96,826 3,513 3.5 3.6 200] ]]2,6]6 108,201 4,4]5 3.9 4.8 2002 ]]7,278 ]]2,118 5,160 4.4 5.5 2003 ]2U15 ]]5,627 5.484 4.5 5.] Source: US Department of Labor, Bureau of Labor Statistics; Division of Employment Security, Department of Commerce, State of Florida; and Florida Department of Labor and Employment Security, Bureau of Labor Market Information; 2004 Florida Statistical Abstract, University of Horida. BUILDING PERMIT ACTIVITIES IN COLLIER COUNTY 0994-2003) Single Multi~ Residential Year. Family Units Family Units Valuation(]) ]994 1,964 2,358 $449,254 ]995 ],957 2,300 50],797 ]996 2,3]8 2,585 447,563 ]997 2,718 3,324 567,883 ]998 2,804 4,040 826,]99 ]999 3,765 3,777 93],599 2000 4,065 3,905 ],]88,310 200] 3,878 4,280 ],093,852 2002 4,]73 3,109 U 13,547 2003 3,376 2.444 977,445 (1) Valuation in thousands of dollars. Source: 2004 Florida Statistic"j 1\bstract, University of Florida; Ye"rs 1993 through 2002; University of Florida Bureau of Economic und Business Research, Building- Pprmit Activity in Florida. 14399/07 /00009S63. DOC v61 1\-4 Agriculture Agriculture is a dominant factm in the economy of the County. Rainfall averages about 52 inches ZlnnuaIly vvith most of the precipitatlon occurring during the late spring Jnd 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 seven 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 4] (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 ]50 feet wide. Commuter airlines offer regularly scheduled flights to Miami, Tampa and Atlanta. Air service at the Southwest International Airport near Fort Myers, 35 miles north of Naples, reaches many major cities. In addition, the County OWns and operates three public airports: the Marco Island Executive Airport and the Immokalee and Everglades City Airparks. Educational System 111e County school system serves approximately 42,000 students in 44 schools. 111e public schools provide <1 varied adult education program (md a special program for pre-school children. There ,1TP several private and parochial schools in the County offering classes from kindergarten through the twelfth grade. Edison Community College's main campus in Fort Myers, with a branch campus in Nilples, 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 provides a liberal arts education at the undergraduate and graduate levels. Although not located within the County, Flonda Gulf Coast College, the tenth college in the State University System, is operating in Lee County, immediately north of the County. Il'1CJ9j07/0000CJ563. DOC \'61 A-S 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 ] 956, financed exclusively by contributions from members of the community. Since ]956, Naples Community Hospital has grown to encompass approximately 422,000 square feet and include two six-story towers that house Naples Community Hospital's 408 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. The Cleveland Clinic operates a hospital in the northern portion of the County. The Collier County Health Department operates in every community in the County under the direction of a licensed physician and with a staff of trained specialists, including public health workers, nurses, sanitarians and clinical psychologists. COLLIER COUNTY FINANCIAL AND ECONOMIC DATA (Fiscal Years 1995-2004) (Unaudited) Per Bank Fiscal Percent Capita Deposi ts Year PopulatiolLW Increase Income (OOO'stw ]995 ]86,64] 3.4'1'0 N/A $2,870,991 1996 ] 97,400 5.8 $30,20] 3,]]2,346 1997 202,903 2.7 30,906 3,463,731 ]998 210,095 3.5 32,878 3,767,5]6 1999 2] 9,685 4.6 34,830 4,102,784 2000 229,82] 4.6 36,210 4,658,978 200] 25],377 9.3 38,9]6 5,153,782 2002 264,475 5.2 40,]21 5,844,]44 2003 284,9] 8 7.7 4],269 6,788,764 2004 292,466 2.6 42,050 8,132,8]2 (1) FlorIda Bankers Association. N/A ~ Data not currently available Source: Collier County Comprehensive Annual Financial Report for Fiscal Year ending September 30, 2004. 14399/07/0000956, I JOC\61 ;\~6 Assessed Valuation The following table shows the assessed value and taxable value for operating millage in each of the past ten Fiscal Years. Fiscal YeilT 1995 /996 1997 199R 1999 2000 2001 2002 2003 2004 TOTAL ASSESSED AND TAXABLE VALUE IN COLLIER COUNTY (Fiscal Years 1995-2004) (Unaudited) Ratio of County Taxable County Taxable Taxable Value Value Real Value Personal Total Total To Total Property Only Property Only Taxable Value.ill Assessed Value.ill Assessed Value $]6,038,210,]6] $ 892,359,888 $]6,930,66],056 $20,463,37],228 82.74% 17,146,475,680 936,566,] 44 ]8,083,13],56] 2],75],280,540 83.]4 ]8,547,873,]69 98],]]9,4]5 ]9,529,075,510 23,436,330,545 83.33 20,304,97] ,5] 4 ],037,538,724 2],342,594,299 25,777,]5],470 82.79 23,27],327,045 ],]50,774,033 24,422,20],235 29,830,939,079 8].86 26,493,40],264 1,24R,5]2,60.J 27,742,02],485 33,902,799,963 81.82 32,057,96U36 ] ,336,930,733 33,395,002,460 4],333,321,44] 80.79 38,085, ]69,570 ] ,405,] 40,367 39,490,423,3] 4 49,67],844,946 79.50 44,492,425,404 1,493,184,997 45,985,727,3]4 57,76],7] 7,6] 7 79.60 49,7R6,659,813 ],476,025,768 5],262,8]2,810 64,236,986,5]8 79.80 (t) These figures include Centrally Assessed property. (2) Just Value is the Market or Assessed value. From this you subtract exemptions, classified agricultural property and capped homestead value to arrive at taxable value. Source: Collier County Property Appraiser's Office. !Remainder of page intentionally left blank] 11YJQ!07/1l0009563. DOC\'61 A-7 The following table contains the property tax rates for the Fiscal Years ]995 through 2004. COLLIER COUNTY, FLORIDA PROPERTY TAX RATES - All DIRECT AND OVERLAPPING GOVERNMENTS (]) (Fiscal Years 1995-2004) (Unaudited) COLLIER COUNTY OTHER Special Debt fiscal General Revenue Service School Independent Year Fund Fund Funds Total District Districts Total ]995 3.6028 0.6834 0.1062 4.3924 8.3227 1.5028 ]4.2]79 ]996 3.49]8 0.709] 0.0989 4.2998 8.6000 1.5353 ]4.435] 1997 3.7266 0.7567 0.0490 4.5323 8.69]8 1.5420 ]4.766] 1998 3.6838 0.7604 0.0452 4.4894 8.4298 1.594 ] ]4.5133 1999 3.5540 0.6689 0.0420 4.2649 8.5] 73 ] .4801 ]4.2623 2000 3.5086 0.64]9 0.0355 4.1860 7.7661 ] .4654 13.4]75 2001 3.5050 0.6624 0.03]8 4.1992 7.7334 ].4607 13.3933 2002 3.8797 0.6238 0.0257 4.5292 7.1464 1.3813 13.0569 2003 3.8797 0.6182 0.02]6 4.5]95 6.9]92 1.3554 ]2.794] 2004 3.8795 0.8885 00000 4.7680 6.5310 1.3562 ] 2.6552 (1) Basis for property tax rates is ] mill per $],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, 2004. [Remainder of page intentionally left blank] 14399/07/0000%63. DOCv61 ^-H :1O;<N/07 /00009563. DOC \'6} APPENDIX B AUDITED F]NANClAl STATEMENTS FOR FISCAL YEAR ENDED SEPTEMBER 30, 2004 APPENDIX C FORM OF THE RESOLUTION I 4399/07/00(J()9563. DOC \'61 APPENDIX 0 FORM OF FINANCIAL GUARANTY INSURANCE POLICY 1.1~(19 /07 /001109563. DOC \'6\ 11399/07/00009563. DOC' \61 APPENDIX E FORM OF BOND COUNSEL OPINION APPENDIX F FORM OF CONTINUING DISCLOSURE CERTIFICATE I r199/1i7/0001l9563.DOCv61 EXHIBIT D FORM OF GUARANTY AGREEMENT GUARANTY AGREEMENT C;\IARANTY AGREEMENT dated as of ,200_ by and betwcen ,a puhlic body corporate orgamzcd and existing undcr the laws of thc State of (the "Obligor"); and ;\~II3;\C ASSURANCE CORPORA nON ("Ambac"), a Wisconsin domiciled stock Insurance company. WITNESSETII: WHEREAS, the Obligor has or will issue_(the "[ObligatIOns]"); and WHEREAS, Ambac will Issue its Surcty Bond (the "Surety Bond"), substantially in the form set forth In Annex A to this Agreement, guarantccing certain payments by the Obligor subjcct to thc terms and limitations of thc Surety Bond; and WHEREAS, to induce Ambac to issuc the Surety Bond, thc Obligor has agreed to pay thc premium for such Surety Bond and to reimburse Ambac for all paymcnts made by Ambac under the Surety Bond from Legally Available Funds, all as more fully set forth in this Agreement; and WHEREAS, the Obligor understands that Ambac expressly requires the delivery of this Agreement as part of the consideration for the exccution by Ambac of the Surety Bond; and NOW, TIIEREFORE, in consideration of the premIses and of the agreements herein contained and of the cxecution of the Surety Bond, the Obligor and Ambac agree as follows: ARTICLE I DEFINITIONS; SURETY BOND Section 1.0 I. Delinitions. Except as otherwise expressly provided herein or unless the context otherwisc requires, the terms which arc capitahzed hercm shall have the meanings specified in Annex B hereto. SectIOn 1.02. Surety Bond. (a) Amhac wtll issue the Surety Bond in accordance with and suhject to the terms and condItions of thc ( 'ommltment. (b) The maximum habtlity of Amhac under the Surety Bond and the coverage and term thereof shall he subject 10 and hmltcd by the Surety Bond Coveragc and the terms and conditions of the Surety Bond. (c) Payments made undcr the Surety Bond WIll reduce the Surety Bond Coverage to the extent of that payment, pnlVIdcd that the Surety Bond Covcrage shall be automatically reinstatcd to the extent of the reimbursement of pnnclpaJ by the Ohhgor of any paymcnt made by Ambac. Ambae shall notify the Paying Agent in writing no later than the fifth (5th) day following the relmhursement hy the Obligor that the Surety Bond has been rClIlstJtcd to the extent of such reimbursement. Section 1.03. Premium. In consideration of Ambac agreeing to issue the Surety Bond hereunder, the Obligor herehy agrees to payor cause to be paid from Legally A vailahle Funds the premium set forth in the ('ummitment. SectIOn 1.04. Certain OtherJ~,xpenses. The Obligor will pay all reasonahle fees and dIsbursements ofAmbac's L'oull:;el related to any mouific~tlOn of this Agreement or the Surety Rond. 15 ARTICLE IJ REIMBURSEMENT OBLIGATIONS OF OBLIGOR AND SECURITY THEREFORE Section 2.0 I. Reimbursement for Payments Under the Surety Bond and Expenses. (a) The Obligor will reimburse Ambac; from Legally Available Funds within the Reimbursement Penod. wIthout demand or notIce by Ambac to the Obligor or any other person, to the extent of each Surety Bond Payment with interest on each Surety Bond Payment from and including the date made to the date of the reimburscment by the Obligor at the Effective Interest Rate. The Obligor agrees that it shall make monthly level prinCIpal repayments for each Surety Bond Payment during the Reimbursement Period. Interest on each Surety Bond Payment shall be paid monthly during the ReImbursement Period. To the extent that interest payments due hereunder are not paid on a monthly basis, or are not paid as each principal repayment is made, interest shall accrue on such unpaid amounts at a rate equal to the Effective Interest Rate. (b) The Obligor also agrees to reimburse Ambac, from Legally Available Funds, immediately and unconditionally upon demand for all reasonable expenses incurred by Ambac in connection with the Surety Bond and the enforcement by Ambac of the Obligor's obligations under this Agreement together with interest on all such expenses from and including the date which is 30 days from the date a statement for such expenses is received hy the Obligor incurred to the date of payment at the rate set forth in subseetion (a) of this Section 2.01. Section 2.02. Allocation of PaYments. Ambac and the Obligor hereby agree that each repayment of principal receIved by Ambac from or on behalf of the Obligor as a reimbursement to Ambae as required by SectJOn 2.01 (a) hereof shall be applied to reinstate all or a portion of the Surety Bond Coverage to the extent of such repayment. Any interest payable pursuant to SectIOn 2.01(a) hereof shall not be applied to the reinstatement of any portIon of the Surety Bond Coverage. Section 2.03. Secunty for Pavments: Instruments of Further Assurance To the extent, but only to the extent, that the Resolution pledges to the OWTlers or any paying agent therefor, or grants a security interest or lien in or on any collateral property, reWnue or other payments ("Collateral and Revenues") in order to secure the [OhligatIonsj or provide a Source of payment for the [Obligations], the Ohligor hereby grants to Ambac a security interest m or lien on. as the case may be, and pledges to Ambac all such Collateral and Revenues as security for paymcnt of all amounts due hereunder, which security interest, lien and/or pledge created or granted undcr this Section 2.03 shall be subordinate only to the interests of the Owners and any paying agent therefor in such Collateral and Revenues. The Obligor agrees that it will, from time to time, execute, aeknowledge and deliver, or cause (0 be executed, acknowledged and delivered, any and all finaneing statements, if applicable, and all other fitrther instnlments as may be required by law or as shall reasonably be requested by Ambac for the pertCction of the security mterest, if any, granted under this SectIon 2.03 and for the preservation and protection of all rights of Amhac under thIS Section 2.03. SectIOn 2.04. UncondItional ObligatIon. The obligatIons of the Obligor hereunder are absolute and unconditional and will be paid or perfonned strictly m accordance with this Agreement, irrespective of: (a) any lack of validity or enforceability of, or any amendment or other modification of, or waiver with respect to the Resolution or the [Obligations]; (b) any exchange, release or nonperfectIon of any security interest in property securing the [Obligations] or this Agreement or any obligations hereunder; (c) any circumstances which might otherwise constitute a defense available to, or discharge of; the Obligor with respect to the [Ohligations]: . 16 (d) whether or not such obligations are contingent or matured, disputed nr undisputed, liquidated or unliquidated. ARTICLE III EVENTS OF DEFAULT; REMEDIES Section 3.01. Events ufDefault. The following events shall constitute Events of Default hereunder: (a) The Obligor shall fail to pay to Ambac any amount payable under Sections 1.04 and 2.0] hereof and such failure shall have continued for a period in excess of the Reimbursement Period; (b) Any material representation or warranty made by the Obligor hereunder or under the Resolution or any statement in the applieation for the Surety Bond or any report, certificate, financial statement or other instrument provided in connection with the Commitment, the Surety Bond or herewith shall have been materially false at the time when made; (e) Except as otherwise provided in this Section 3.01, the Obligor shall fail to perform any of its other obligations under this Agreement, provided that such lailure continues for more than thirty (30) days after receipt hy the Obligor of notice of such failure to perform; (d) The Obligor shall (I) voluntanly commence any proceeding or file any petition seeking relief under the (JOlted States Bankruptcy Code or any other Federal, state or foreign bankruptcy, insolvency or simIlar law, (ii) consent to the institution of, or fail to controvert in a timely and appropnate manncr, any such proceeding or the filmg of any such petition, (ili) apply for or consent to the appointment of a receIver, paying agent, custodian, sequestrator or similar official for the Obligor or for a substantial part of its property, (iv) file an answer admitting the material allegations of a petition filed agamst it in any such proceeding, (v) make a general assignment for the benefit of creditors, (vi) become unable, admit in writing its inability or fail generally to pay its debts as they become due or (vII) take actIOn for thc purpose of effecting any of the foregoing; or (e) An involuntary proceeding shall be commenced or an involuntary petitIOn shall be filed in a court of competent junsdiction seeking (i) relief in respect of the Obligor, or of a substantial part of its property, under the (Jnlled States Bankruptcy Code or any other Federal, state or foreign bankruptcy, insolvency or simllar law or (Ii) the appointment of a receiver, paymg agent, custodian, sequestrator or similar official for the Obligor or for " substantial part of its property; and sueh proceeding or petition shall continue undlSmissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall continue un stayed and in effect for thmy (30) days SectIOn 3.02. Remedics. If an Event of Default shall occur and be continumg, then Ambac may take whatever action at law or in equity may appear necessary or deSlTable to collect the amounts then due and thereafter to become duc under this Agreement or any related instrument and enforce any obligation, agreement or covenant of the Obligor under this Agreement: provided, however, that Ambac may not take any action to direct or require acceleration or other early redemption of the [Obligations] or adversely affect the rights of the Owners. All nghts and remedies of Ambac under this Section 3.02 are cumulative and the exercise of anyone remedy does not precludc the exercise of one or more of the other available remedies. 17 ARTICLE IV SETTLEMENT Ambac shall have the exclusive right to decIde and determine whether any claim liability, suit or Judgment made or brought against Ambac, the Obhgor or any other party on the Surety Bond shall or shall not be paid, compromIsed, resisted, defended, tried or appealed, and Ambac's decision thereon, ifmade in good faith, shall be final and binding upon the Obligor. An itemized statement of payments made by Ambac, certified by an officer of Ambac, or the voucher or vouchers for such payments, shall be prima facie evidence of the hability of the Obligor, and if the Obhgor fails to reimburse Ambac, pursuant to subsection (b) of Section 2.0] hereof, upon the receipt of such statement of payments, interest shall be computed on such amount from the date of any payment made by Ambac at the rate set forth In subsection (a) of SectJon 2.0] hereof. ARTICLE V MISCELLANEOUS Section 5.01. Computations. All computations of premium, interest and fees hereunder shall be made on the basis of the actual number of days elapsed over a year of 360 days. Section 5.02. Exercise of Rights. No failure or delay on the part of Ambac to exercise any right, power or privilege under this Agreement and no course of dealing between Ambac and the Obligor or any other party shall operate as a waIver of any such TIght, power or privilege, nor shall any single or partial exercise of any such TIght power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or pnvilege. The rights and remedies herein expressly provided are cumulative and not exclusive of any rights or remedies wl.ich Ambac would otherwise have pursuant to law or equity. No notice to or demand on any party In any case shall entitle such party to any other or further notice or demand in similar or other circumstances, or constitute a waiver of the nght of the other party to any other or further action in any circumstances without notice or demand. Section 5.03. Amendment and Waiver. Any provision of this Agreement may be amended, waived, supplemented, discharged or terminated only with the prior written consent of the Obligor and Ambac. The Obligor hereby agrees that upon the written request of the Paying Agent, Ambac may make or consent to issue any subslltute for the Surety Bond to cure any ambiguity or formal defect or omiSSIOn in the Surety Bond which does not materially change the terms of the Surety Bond nor adversely affect the rights of the Owners, and this Agreement shall apply to such substituted Surety Bond. Ambac agrees to deliver to the Obligor and to the company or companies, if any, ratmg the [Obhgations), a copy of such substituted Surety Bond. Section 5.04. Successors and Assigns; Descnptive Headings. (a) This Agreement shall bind, and the benefits thereof shall inure to, the Obligor and Ambac and their respective successors and assigns; provided, that the Obligor may not transfer or assign any or all of its rights and obligations hereunder without the prior written consent of Ambac. (b) The descnptive headings of the various provisions of this Agreement are inserted for convenience of reference only and shall not be deemed to affect the meaning or construction of any of the provisions hereof. Section 5.05. Other Sureties. If Ambac shall procure any other surety to reinsure the Surety Bond, this Agreement shall inure to the benefit of such other surety, its successors and assigns, so as to give to it a direct TIght of actIon against the Obhgor to enforcc this Agreement and "Amhac." wherever used herein. shall be deemed to include such reinsuring surety, as its respective jnterests may appear. I~ Section 5.06. Signature on Obligation. The Obligor's liability shall not be affected by its failure to sign the Surety Bond nor by any claim that other indemnity or security was to have been obtamed nor by the release of any mdemnity, nor the return or exchange of any collateral that may have been obtained. SectIOn 5.07. Waiver. The Obligor waives any defense that this Agreement was executed subsequent to the date of the Surety Bond, admItting and covenantmg that such Surety Bond was executed pursuant to the Obligor's request and in reliance on the Obligor's promise to execute this Agreement. Section 5.08. Notices, Requests, Demands. Except as otherwise expressly provided herein, all written notices, requests, demands or other communications to or upon the respectIve parties hereto shall be deemed to have been given or made when actually received, or in the case of telex or telecopier notice sent over a telex or a telecopier machine owned or operated by a party hereto, when sent, addressed as specified below or at such other address as either of the parties hereto or the Paying Agent may hereafter specify m writing to the others: If to the Obligor: > If to the Paying Agent: > If to Ambac: Ambac Assurance Corporation One State Street Plaza 17th Floor New York, New York ] 0004 Attention: General Counsel Section 5.09. Survival of Representations and Warranties. All representations, warrantIes and obligations contained herein shall survive the execution and delivery of this Agreement and the Surety Bond. SectIOn 5.10. Governing Law. This Agreement and the rights and obligations of the parties under this Agrcement shall be governed by and construed and interpreted in accordance with the laws of the State. SectIOn 5. I I. Counterparts. This Agreement may be executed in any number of copIes and by the different partIes hcreto on the same or separate counterparts, each of which shall bc deemed to be an original instrument. Complete counterparts of this Agreement shall be lodged WIth the Obligor and Ambac. Section 5.12. Severabilitv. In the event any provision of this Agreement shall be held invalid or unenforceable hy any court of competent junsdiction, such holding shall not mvalidate or render unenforceable any other proVISion hereof. IN WITNESS WHEREOF, each of the partIes hereto has caused a counterpart of this Agreement to be duly executed and delivered as of the date first ahove written. (Seal) Attest: Title: (OBLIGOR) By TItle: AMBAC ASSURANCE CORPORATION Attest: Title: By Title: 1<) ANNEX A SURETY BOND 20 ANNEX B DEFINITIONS For all purposes of this Agreement, except as otherwise expressly provIded herem or unless the context otherwise requires, all capitalized terms shall have the meaning as set out below. "A!,'feement" means this Guaranty Agreement. "Ambae" has the same meaning as set forth in the first paragraph of this Agreement. "Collateral and Revenues" has the same meaning as set forth in Section 2.03 hereof. "Commitment" means the Ambac Commitment for Surety Bond in the form attached hereto as Annex C. "Debt Service Payments" means those payments required to be made by the Obligor which will be applied to payment of principal of and interest on the [Obligations]. "Effective Interest Rate" means the lesser of the ReImbursement Rate or the maxImum rate of interest permitted by then applicable law; provided, however, that the Effective Interest Rate shall in no event be less than the mterest rate on the [Obligations] "Event of Default" shall mean those events of default set forth in Section 3.0 I of this Agreement. "Legally Available Funds" means any moneys legally available to the Obligor for the payment of its obligations. "[Obligations]" has the same mean 109 as set forth in the second paragraph of this Agreement. "Obligor" has the same meaning as set forth in the first paragraph of this Agreement. "Owners" means the registered owner of any [ObligatJon] as indicated 10 the books maintained by the applicable paying agent, the Obligor or any designee of the Obligor for such purpose. The term "Owner" shall not mclude the Obligor or any person or entlly whose obligation or obligatIOns by agreement constitute the underlying security or source of payment for the [Obligations]. "Paying Agent" means "Relmbursemcnt Penod" means, with respect to a particular Surety Bond Payment. the period commencing on the date of such Surety Bond Payment and ending 12 months following such Surety Bond Payment. "Reimbursement Rate" means Citibank's prime rate plus two (2) percent per annum, as of the date of such Surety Bond Payment, said "prime rate" being the rate of interest announced from time to time by Citibank, New York, New York, as its prime rate. The rate of interest shall be calculated on the basis of a 360 day year. 21 "Resolution" means "State" means the State of "Surety Bond" means the Surety Bond issued by Ambac substantially m the form attached to this Agreement as Annex A. "Surety Bond Coverage" means the amount available at any particular tlme to be paid to the Paying Agent under the terms of the Surety Bond, which amount shall never exceed $ "Surety Bond Payment" means an amount equal to the Debt Service Payment less (i) that portion of the Debt Service Payment paid by the Obligor. and (ii) other funds legally available to the Paying Agent for payment to the Owners, all as certified by the Paying Agent in a demand for payment rendered pursuant to the terms of the Surety Bond. 22 ANNEX C COMMITMENT 23 EXHIBIT E FORM OF CONTINUING DISCLOSURE CERTIFICATE FORM OF CONTINUING DISCLOSURE CERTIFICA TE This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by Collier County, Florida (the "Issuer") in connection with the issuance of its $ Gas Tax Revenue Bonds, Series 2005 (the "Bonds"). The Bonds are being issued pursuant to Resolution No. 2003-89 adopted by the Board of County Commissioners of the Issuer (the "Board") on Febmary 25, 2003, as amended and supplemented from time to time, as particularly amended by Resolution 2003-247, adopted by the Board on July 29, 2003 and as particularly amended and supplemented by Resolution No. 2005- ~ adopted by the Board on .2005 (collectively, the "Resolution"). SECTION 1. PURPOSE OF THE DISCLOSURE CERTIFICATE. This Disclosure Certificate is being executed and delivered by the Issuer for the benefit of the Holders and Beneficial Owners of the Bonds and in order to assist the Participating Underwriters in complying with the continuing disclosure requirements of Securities and Exchange Commission Rule ]5c2-12. SECTION 2. DEFINITIONS. In addition to the definitions set forth in the Resolution which apply to any capitalized t('rm llsed in this Disclosure Certificate, unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" shall mean any Annual Report provided by the Issuer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. "Beneficial Owner" shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes. "Central Post Office" shall mean any central filing location described in Exhibit B hereto and any additional central filing location hereafter designated by the SEC as a location that satisfies the Rule. "Dissemination Agent" shall mean the Issuer, or any successor Dissemination Agent designated in writing by the Issuer Jnd which has filed with the Issuer a written acceptance of such designation. "Insurer" shall mean Ambac Assurance Corporation. "Listed Events" shall mean any of the events listed in Section 5(a) of this Disclosure Certificate. "National Repository" shall mean any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule. The National Repositories currently approved by the Securities and Exchange Commission are set forth in Exhibit B. "Participating Underwriters" shaH mean the original underwriters of the Bonds required to comply wilh the Rule in connection with offering of the Bonds. "RepOSItory" shall mean ei1ch National Repository ilnd each Slate Repository. (.I:>94/07/o000%H I. ooc d I "Rule" shall mean the cont;"nuing disclosure requirements of Rule J5c2-]2 adopted by the Securities and Exchange Commission under the Serurities Exchange Act of 1934, as the same may be amended from time to time. "State" shall mean the State of Florida. "State Repository" shall mean any public or private repository or entity designated by the State as a state information depository for the purpose of the Rule and recognized as such by the Securities and Exchange Commission. As of the date of this Certificate, there is no State Repository. 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, 2006 with respect to the report for the 2005 fiscal year, provide to each Repository and the Insurer an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross~reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the Issuer may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date provided, further, in such event unaudited financial statements are required to be delivered as part of the Annual Report in accordance with Section 4(a) below. If the Issuer's fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(c). (b) Not later than fifteen (]5) 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 the Repositories and the Insurer an Annual Report by the date required in subsection (a), the Issuer shall send a notice to (i) each National Repository or the Municipal Securities Rulemaking Board, (Ii) the State Repository, and (iii) 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 each National l,epository, the State Repository, if any, and the Insurer; provided, however, if the filing is to be made through the Central Post Office pursuant to Section 6 below, the Dissemination Agent need only determine the name and address of the Central Post Office; and (ii) if the Dissemination Agent is other than the Issuer, file a report with the Issuer certifying that the Annual Report has been provided pursuant to this Disclosure Certificate, stating the date it was provided and listing all the Repositories, or the name of the Central Post Office in the event the filing is made through the Central Post Office, :1Od the Insurer to which it was provided. (Remainder of page intentionally left blank) 14399/07/o000Y681.DO('\,41 I' 0 -" 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 accullnting 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 , 2005 (the "Official Statement"), and the audited financial statements shall be filed in the same manner as the Annual Report when they become available; and (b) updates to the following historical financial information and operating data in tabular form in the Official Statement entitled "NUMBER OF TAXABLE GALLONS SOLD," "COUNTY FUEL TAX REVENUES DISTRIBUTED STATEWIDE," "SEVENTH CENT GAS TAX REVENUES," "NINTH CENT GAS TAX REVENUES," "SIX CENTS LOCAL OPTION GAS TAX REVENUES," "FIVE CENTS LOCAL OPTION GAS TAX REVENUES," "CONSTITUTIONAL GAS TAX REVENUES," "GAS TAX REVENUES" and "PRO-FORMA DEBT SERVICE COVERAGE." The information provided under Section 4(b) may be included by specific reference to other documents, including official statements of debt issues of the Issuer or related public entities, which have been submitted to each of the Repositories, either directly or through the Central Post Office, or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The Issuer shall clearly identify each such other document so included by reference. SECTION 5. REPORT]NG OF SIGNIFICANT EVENTS. (a) Pursuant to the provisions of this Section 5, the Issuer shall givE', or cause to be given, notice of the Occurrence of any of the following events with respect to the Bonds, if materia]: 1. principal and interest payment delinquencies; 2. non-payment related defaults; 3. unscheduled draws on the debt service reserves reflecting financial difficulties; 4. unscheduled draws on credit enhancements reflecting finandal difficulties; 5. substitution of credit or liquidity providers, or their failure to perform; 6. adverse tax opinions or events affecting the tax-exempt status of the Bonds; 7. modifications to rights of the holders of the Bonds; 8. Bond calls (other than scheduled mandatory redemption); 9. defeasancE's; (439Q/0710()009681.DOCv4j I. 0 '-,) ]0. release, substitution, or sale of property securing repayment of the Bonds; ]]. ratings changes; and 12. notice of any failure on the part of the Issuer to meet the requirements of Section 3 hereof. (b) Whenever the Issuer obtains knowledge of the occurrence of a Listed Event, the Issuer shall promptly determine if such event would be material under applicable federal securities laws; provided, however, that any event under clauses ], 4, 5, 6, 10, ]] and ]2 above shall always be deemed to be material. (c) If the Issuer determines that knowledge of the OCcurrence of a Listed Event would be material under applicable federal securities laws, the Issuer shall promptly file a notice of such Occurrence with (i) each National Repository or the Municipal Securities Rulemaking Board, (ii) the Insurer, and (iii) the State Repository. SECTION 6. FlLlNG THROUGH A CENTRAL POST OFFICE. Any filing made or notice provided by the Issuer in accordance with this Certificate to a Central Post Office by electronic or other means shall satisfy the requirements of this Certificate with respect to filings required to be made to all National Repositories and the State Repository, and the Issuer shall not be required to make separate filings with the National Repositories and the State Repositories. SECTION 7. TERMINATION OF REPORTING OBLIGATION. The Issuer's obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds or if the Rule is repealed or no longer in effect. If such termination Occurs prior to the final mahlTity of the Bonds, the Issuer shalI give notice of such termination in the same manner as for a Listed Event under Section 5(c). SECTION 8. D1SSEl\lINA TION 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 nof 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 la\v, 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 recobniz~)d bond counsel, have complied with the rpquirements of the Rulp at the time of the 14399/07/0()(Xl%81.DOCvcll F-~ original issuance of the Bonds, after taking into account _any amendments or interpretation.s 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 01 the holders or Beneficial Owners of the Bonds. In the event 01 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 explanalion 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, ilthe amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given in the same manner as for a Listed Event under Section 5(c), and (ii) the Annual Report for the year in which the change is made should present a comparison (in narrative form and also, il 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 inlormation in any Annual Re?ort or notice 01 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. SECTlON]1. DEFAULT. In the event of a failure of the Issuer to comply with any provision of this Disclosure Certificate, any holder or Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the Issuer to comply with Its obligations under this Disclosure Certificate; provided, however, the sole remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with the provisions of this Disclosure Certificate shall be an action to compel performance. A default under this Disclosure Certificate shall not he deemed an Event of Default under the Resolution. SECTION ]2. DUTIES, IMMUNlTIES 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 01 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) ! -1':;99107 100009681. [)CX~\...j J F-5 SECTION 13. BENEFICIARIES. This Disclosure Certificate shall inure solely to the benefit of the Issuer, the Dissemination Agent, the Participating Underwriters, the Insurer and holders and Beneficial Owners from Ilme to time of the Bonds, and shall create no rights in any other person or entity. Dated as of ,2005 (SEAL) COLLIER COUNTY, FlORlDA By: Chair, Board of County Commissioners Attested and Countersigned: By: Clerk of the Circuit Court, Collier County, Florida and Ex-Officio Clerk of the Board of County Commissioners, Collier County, Florida 1.t399/07/00009681.DOCv41 F-6 EXHIBIT A NOTICE OF FAILURE TO FILE ANNUAL REPORT Name of Issuer: Collier County, Florida Name of Bond Issue: Gas Tax Revenue Bonds, Series 2005 Date of Issuance: ,2005 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 .2005. The Issuer anticipates that the Annual Report will be filed by Dated: COLLIER COUNTY, FLORIDA By: Name: Title: (4399/07/0000968] .DOC\'4} F-7 EXHIBITB Any filing under this Certificate to any of the Repositories may be made solely by transmitting such filing to the Texas Municipal Advisory Council (the "MAC) as the "Central Post Office" as such term is defined in the Certificate and as provided at http://www.disclosureusa.org unless the United States Securities and Exchange Commission has withdrawn the interpretive advice in its letter to the MAC dated September 7, 2004. Nationally Recognized Municipal Securities Information Repositories approved by the Securities and Exchange Commission: Bloomberg Municipal Repository 100 Business Park Drive Skillman, NJ 08558 Phone: (609) 279-3225 Fax: (609) 279-5962 hHp:/ /w'vV\v. hi nom berg.com/markets/municonta cts.html Email: tvlunjsl!H~loomberg..com DPC Data Inc. One Executive Drive Fort Lee, NJ 07024 Phone: (20]) 346-070] Fax: (20]) 947-0107 http://\\',\,\'I.' .Jpcdata.com Email: nnnsjn~l.dpcdata.com FT Interactive Data Attn: NRMSIR 100 William Street, ]5'h Floor New York, NY ]0038 Phone: (212) 77] -6999 Fax: (2]2) 77]-7390 http://www.ftid.com EmaiJ: NRMSIR@interactivedata.com Standard & Poor's Securities Evaluations, lnc. 55 Water Street, 45'h Floor New York, NY 1004] Phone: (2] 2) 438-4595 Fax: (2]2) 438-3975 \V\v\"".likenny.com/iikcnllv/pser descrip data rep.html Email: nrmsirrepository@sandp.com A list of names and addresses of all designated Nationally Recognized Municipal Securities Information Repositories as of any point In time IS available by visiting the SEC's website at www.see.!.!ov/info/municipal/nrmsir.htm. H399!07/00009681,DOCv41 F-R