Agenda 03/12/2019 Item #9A03/12/2019
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners, acting as the ex-officio Governing
Board of the Collier County Water-Sewer District, (1) approves the Resolution to authorize the
issuance of bonds to finance utility infrastructure expansion in the northeast service area to serve
future residents and businesses, (2) delegates authority to the County Manager to award Bonds to
the bidder that provides the lowest interest cost to the District, (3) authorizes publication of a
Notice of Sale, (4) authorizes distribution of Preliminary Official Statement and a final Official
Statement, (5) appoints the Paying Agent and Registrar of said Bonds, and (6) authorizes and
approves other matters related to the bonds, including all necessary budget amendments.
OBJECTIVE: To approve issuance of Water and Sewer Revenue Bonds, Series 2019 (the "Bonds") to
fund utility infrastructure expansion in the northeast service area and complete all steps necessary to
complete the transaction.
CONSIDERATIONS: Regional utility infrastructure expansion in the northeast service area will
provide potable water, wastewater and irrigation water services to new residents and businesses in the
northeast service area. The bond proceeds will fund the necessary piping, construction of portions of the
permanent water and wastewater facilities and provide for interim wastewater treatment.
On February 12, 2019, as agenda item 11C, the Board of County Commissioners (Board) approved the
Plan of Finance developed by the County’s financial advisors, PFM Financial Advisors LLC, and
unanimously endorsed by the Finance Committee on November 20, 2018. Funding the new utility
infrastructure will necessitate issuing the Bonds in the not to exceed principal amount of $85 million,
including construction, debt service reserves and bond closing costs. The Board is scheduled to award the
design/build contract to Mitchell and Stark for $77,653,700. The Bonds will also fund required reserves
and closing costs.
The full permanent water production plant and wastewater treatment plant designed in 2010 are not
included in this funding plan and will require further bond funding in the future as demand increases.
Timing of funding for construction of permanent potable water production and wastewater treatment
facilities may be necessary as early as 2022, depending on demand and building permits.
The Resolution was advertised in the Naples Daily News on March 1, 2019.
FISCAL IMPACT: Following approval, Bonds will be issued, and proceeds will be deposited in the
Water/Wastewater Bond Fund (415) where projects related to the expansion will be recorded and tracked.
Debt service will increase in each of the next 20 fiscal years, funded by a combination of user fees (Fund
408), water impact fees (Fund 411) and wastewater impact fees (Fund 413). Advance payment of impact
fees to fund the incremental debt service expense for the initial debt service payments are anticipated
through Developer Agreements and/or Interlocal Agreements which are already un derway with Hyde
Park Village and River Grass Village. An impact fee rate study by PRMG is also underway and will be
brought to the Board for review and approval at a future meeting. The User Fee rates per Resolution
2018-129, adopted by the Board on July 10, 2018 (agenda item 17F), are anticipated to be sufficient to
provide the user fee portion of incremental debt service through fiscal 2021. Should no development
occur following construction of the utility infrastructure, a worst -case scenario would require an
additional increase in user fees of approximately 2.5 percent effective with fiscal 2020.
GROWTH MANAGEMENT IMPACT: This item meets current Growth Management Plan standards
to ensure the adequacy and availability of viable public facilities.
9.A
Packet Pg. 34
03/12/2019
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to
form and legality, and requires majority vote for approval. -JAK
RECOMMENDATION: That the Board, Ex-officio the Governing Board of the Collier County Water-
Sewer District: (1) approves the Resolution to authorize the issuance of bonds to finance utility
infrastructure expansion in the northeast service area to serve future residents and businesses, (2)
delegates authority to the County Manager to award Bonds to the bidder that provides the lowest interest
cost to the District, (3) authorizes publication of a Notice of Sale, (4) authorizes distribution of
Preliminary Official Statement and a final Official Statement, (5) appoints the Paying Agent and Registrar
of said Bonds, and (6) authorizes and approves other matters related to the bonds, including all necessary
budget amendments.
Prepared By: Joseph Bellone, Financial Operations Support Division Director, Public Utilities
Department
ATTACHMENT(S)
1. Supplemental Resolution for Water-Sewer Bonds Series 2019 (PDF)
2. EXHIBIT A - Project Description (PDF)
3. EXHIBIT B - Form of Official Notice of Sale (PDF)
4. [Linked] EXHIBIT C - Form of Preliminary Official Statement (PDF)
5. EXHIBIT D - Form of Continuing Disclosure Certificate (PDF)
6. Legal Ad - Agenda ID 8197 (PDF)
9.A
Packet Pg. 35
03/12/2019
COLLIER COUNTY
Board of County Commissioners
Item Number: 9.A
Doc ID: 8197
Item Summary: *** This item to be heard immediately following Item 11.B ***
Recommendation that the Board of County Commissioners, acti ng as the ex-officio Governing Board of
the Collier County Water-Sewer District, (1) approves the Resolution to authorize the issuance of bonds
to finance utility infrastructure expansion in the northeast service area to serve future residents and
businesses, (2) delegates authority to the County Manager to award Bonds to the bidder that provides the
lowest interest cost to the District, (3) authorizes publication of a Notice of Sale, (4) authorizes
distribution of Preliminary Official Statement and a final Official Statement, (5) appoints the Paying
Agent and Registrar of said Bonds, and (6) authorizes and approves other matters related to the bonds,
including all necessary budget amendments. (Joseph Bellone, Financial Operations Support Division
Director, Public Utilities Department)
Meeting Date: 03/12/2019
Prepared by:
Title: – Solid and Hazardous Waste
Name: Sarah Hamilton
02/28/2019 11:27 AM
Submitted by:
Title: Division Director - Operations Support – Public Utilities Operations Support
Name: Joseph Bellone
02/28/2019 11:27 AM
Approved By:
Review:
Public Utilities Operations Support Joseph Bellone Additional Reviewer Completed 02/28/2019 12:01 PM
Public Utilities Planning and Project Management Tom Chmelik Additional Reviewer Completed 02/28/2019 2:56 PM
Public Utilities Department Sarah Hamilton Level 1 Division Reviewer Completed 02/28/2019 4:08 PM
Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 02/28/2019 5:36 PM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 03/01/2019 11:46 AM
Office of Management and Budget Valerie Fleming Additional Reviewer Skipped 03/04/2019 8:07 AM
Budget and Management Office Mark Isackson Additional Reviewer Completed 03/04/2019 1:27 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 03/06/2019 7:59 AM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 03/06/2019 10:38 AM
Board of County Commissioners MaryJo Brock Meeting Pending 03/12/2019 9:00 AM
9.A
Packet Pg. 36
RESOLUTION 2019- /CWS RESOLUTION 2019- _
A RESOLUTION SUPPLEMENTING RESOLUTION NO.
CWS-85-13 IN CERTAIN RESPECTS, WHICH
RESOLUTION NO. CWS-85-13, AMONG OTHER
THINGS, RESTATED RESOLUTION NO. CWS-85-5 IN
ITS ENTIRETY AND AUTHORIZED THE ISSUANCE BY
THE COLLIER COUNTY WATER-SEWER DISTRICT OF
WATER AND SEWER REVENUE BONDS FROM TIME
TO TIME; AUTHORIZING THE ISSUANCE OF NOT
EXCEEDING $85,000,000 AGGREGATE PRINCIPAL
AMOUNT OF COLLIER COUNTY WATER-SEWER
DISTRICT WATER AND SEWER REVENUE BONDS,
SERIES 2019 IN ORDER TO FINANCE THE
ACQUISITION, CONSTRUCTION AND EQUIPPING OF
VARIOUS UTILITY CAPITAL IMPROVEMENTS
WITHIN THE NORTHEAST AREA OF COLLIER
COUNTY; MAKING CERTAIN COVENANTS AND
AGREEMENTS WITH RESPECT TO SAID BONDS;
AUTHORIZING THE AWARDING OF SAID BONDS
PURSUANT TO A PUBLIC BID; DELEGATING
CERTAIN AUTHORITY TO THE COUNTY MANAGER
FOR THE AWARD OF THE BONDS AND THE
APPROVAL OF THE TERMS AND DETAILS OF SAID
BONDS; AUTHORIZING THE PUBLICATION OF A
NOTICE OF SALE FOR THE BONDS OR A SUMMARY
THEREOF; AUTHORIZING THE DISTRIBUTION OF AN
OFFICIAL PRELIMINARY OFFICIAL STATEMENT
AND THE EXECUTION AND DELIVERY OF AN
OFFICIAL STATEMENT WITH RESPECT THERETO;
APPOINTING THE PAYING AGENT AND REGISTRAR
FOR SAID BONDS; ESTABLISHING A BOOK-ENTRY
SYSTEM OF REGISTRATION FOR THE BONDS;
AUTHORIZING THE EXECUTION AND DELIVERY OF
A CONTINUING DISCLOSURE CERTIFICATE; AND
PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, ACTING AS THE EX-OFFICIO GOVERNING
BOARD OF THE COLLIER COUNTY WATER-SEWER DISTRICT:
9.A.1
Packet Pg. 37 Attachment: Supplemental Resolution for Water-Sewer Bonds Series 2019 (8197 : Resolution to authorize Water-Sewer Bonds to fund
2
SECTION 1. FINDINGS. It is hereby found and determined that:
(A) On July 30, 1985, the Board of County Commissioners of Collier County,
Florida, acting as the ex-officio governing board (the "Governing Body") of the Collier
County Water-Sewer District (the "Issuer") duly adopted Resolution No. CWS-85-5, as
amended and restated by Resolution No. CWS-85-13 duly adopted on
December 26, 1985, as amended and supplemented (collectively, the "Resolution"), for
the purposes described therein.
(B) There are currently Outstanding (as defined in the Resolution) under the
Resolution the Issuer's Water and Sewer Refunding Revenue Bond, Series 2013, Water
and Sewer Refunding Revenue Bond, Series 2015, Water and Sewer Refunding Revenue
Bonds, Series 2016 and Water and Sewer Revenue Bond, Series 2018 (collectively, the
"Outstanding Parity Bonds").
(C) There are various utility capital improvements required to be made within
the northeast area of Collier County, Florida (the "County") in order to maintain and
protect the health, safety and welfare of the citizens of the County, which capital
improvements are generally described in Exhibit A attached hereto and more particularly
described in the plans and specifications on file with the Issuer, as the same may be
amended and supplemented from time to time (collectively, the "Project").
(D) The Resolution provides for the issuance of Additional Bonds (as defined
in the Resolution) payable on parity under the Resolution with the Outstanding Parity
Bonds for the purpose of financing costs of the Project, upon meeting certain
requirements set forth in the Resolution.
(E) The Issuer deems it to be in its best interest to issue its Collier County
Water-Sewer District Water and Sewer Revenue Bonds, Series 2019 (the "Series 2019
Bonds") for the principal purpose of financing costs of the Project, which Series 2019
Bonds shall be issued on parity with the Outstanding Parity Bonds, all in accordance with
and pursuant to the terms of the Resolution.
(F) In accordance with Section 218.385, Florida Statutes, and pursuant to this
Supplemental Resolution (as defined in the Resolution), the Series 2019 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").
(G) Pursuant to the Official Notice of Sale, any competitive bids received in
accordance with the Official Notice of Sale on or prior to the time and date determined by
the County Manager upon the advice of the Issuer's financial advisor, PFM Financial
Advisors LLC (the "Financial Advisor"), in accordance with the terms and provisions of
the Official Notice of Sale, shall be publicly opened and announced.
9.A.1
Packet Pg. 38 Attachment: Supplemental Resolution for Water-Sewer Bonds Series 2019 (8197 : Resolution to authorize Water-Sewer Bonds to fund
3
(H) It is desirable for the Issuer to be able to advertise and award the Series
2019 Bonds at the most advantageous time and date which shall be determined by the
County Manager upon the advice of the Financial Advisor; and, accordingly, the Issuer
hereby determines to delegate the advertising and awarding of the Series 2019 Bonds to
the County Manager within the parameters described herein.
(I) It is necessary and appropriate that the Governing Body determine certain
parameters for the terms and details of the Series 2019 Bonds and to delegate certain
authority to the County Manager for the award of the Series 2019 Bonds and the approval
of the terms of the Series 2019 Bonds in accordance with the provisions hereof, of the
Resolution and of the Official Notice of Sale.
(J) In the event Bond Counsel to the Issuer shall determine that the Series 2019
Bonds have not been awarded competitively in accordance with the provisions of Section
281.385, Florida Statutes, the Governing Body shall adopt such resolutions and make
such findings as shall be necessary to authorize and ratify a negotiated sale of the Series
2019 Bonds in accordance with said Section 218.385, Florida Statutes.
(K) The Issuer hereby certifies that it is current in all deposits into the various
funds and accounts established by the Resolution and all payments theretofore required to
have been deposited or made by the Issuer under the provisions of the Resolution have
been deposited or made and the Issuer has complied with the covenants and agreements
of the Resolution and is not currently in default under the Resolution.
(L) The Resolution provides that the Series 2019 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.
(M) The Series 2019 Bonds shall not be or constitute general obligations or
indebtedness of the Issuer as "bonds" within the meaning of any constitutional or
statutory provision but shall be special obligations of the Issuer, payable solely from and
secured by a lien upon and pledge of the Pledged Funds (as defined in the Resolution), in
the manner and to the extent provided in the Resolution.
(N) The covenants, pledges and conditions in the Resolution shall be applicable
to the Series 2019 Bonds herein authorized and said Series 2019 Bonds shall be on parity
with and rank equally as to the lien on and source and security for payment from the
Pledged Funds and in all other respects with the Outstanding Parity Bonds, and shall
constitute "Bonds" within the meaning of the Resolution.
9.A.1
Packet Pg. 39 Attachment: Supplemental Resolution for Water-Sewer Bonds Series 2019 (8197 : Resolution to authorize Water-Sewer Bonds to fund
4
SECTION 2. DEFINITIONS. When used in this Resolution, the terms
defined in the Resolution shall have the meanings therein stated, except as such
definitions may be hereinafter amended or defined.
SECTION 3. AUTHORITY FOR THIS SUPPLEMENTAL
RESOLUTION; AUTHORIZATION OF FINANCING OF THE PROJECT. This
Supplemental Resolution is adopted pursuant to the provisions of the Act and the
Resolution. The Issuer hereby authorizes the financing of Costs of the acquisition,
construction and equipping of the Project.
SECTION 4. DESCRIPTION OF THE SERIES 2019 BONDS. The
Issuer hereby authorizes the issuance of a Series of Bonds in the aggregate principal
amount of not exceeding $85,000,000 to be known as the "Collier County Water-Sewer
District Water and Sewer Revenue Bonds, Series 2019" (or such other series designation
as the County Manager may determine), for the principal purpose of financing Costs of
the Project. The aggregate principal amount of the Series 2019 Bonds to be issued
pursuant to the Resolution shall be determined by the County Manager provided such
aggregate principal amount does not exceed $85,000,000. The Series 2019 Bonds shall
be dated as of their date of delivery or such other date as the County Manager may
determine, shall be issued in the form of fully registered Bonds in denominations of
$5,000 or any integral multiple thereof, shall be numbered consecutively from one
upward in order of maturity preceded by the letter "R", shall bear interest from the dated
date determined therefor, payable semi-annually, on July 1 and January 1 of each year
(the "Interest Dates"), commencing on July 1, 2019, or such other dates as may be
determined by the County Manager.
Interest on the Series 2019 Bonds shall be payable by check or draft of TD Bank,
N.A., Cherry Hill, New Jersey, as Paying Agent (the "Paying Agent"), made payable and
mailed to the Holder in whose name such Series 2019 Bonds shall be registered at the
close of business on the date which shall be the fifteenth day (whether or not a business
day) of the calendar month next preceding the applicable Interest Date, or, at the request
of such Holder, by bank wire transfer to the account of such Holder. Principal of or
Redemption Price, if applicable, on the Series 2019 Bonds is payable to the Holder when
due by check, draft or bank wire transfer. The principal of, Redemption Price, if
applicable, and interest on the Series 2019 Bonds are payable in lawful money of the
United States of America. Interest shall be calculated on the basis of a 360-day year
consisting of twelve 30-day months.
The Series 2019 Bonds shall bear interest at such rates and yields, shall mature on
July 1 of each of the years and in the principal amounts corresponding to such years, and
shall have such redemption provisions as determined by the County Manager subject to
the conditions set forth in Sections 4, 5 and 6 hereof and the provisions of the Official
Notice of Sale. The final maturity of the Series 2019 Bonds shall not be later than
July 1, 2039. All of the terms of the Series 2019 Bonds will be included in a certificate to
9.A.1
Packet Pg. 40 Attachment: Supplemental Resolution for Water-Sewer Bonds Series 2019 (8197 : Resolution to authorize Water-Sewer Bonds to fund
5
be executed by the County Manager, or his designee, following the award of the Series
2019 Bonds (the "Award Certificate") and shall be set forth in the final Official
Statement, as described herein.
SECTION 5. AWARD OF SERIES 2019 BONDS. The County Manager,
on behalf of the Issuer and only in accordance with the terms hereof and of the Official
Notice of Sale, shall award the Series 2019 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 2019 Bonds at the lowest true interest cost to the Issuer, as calculated
by the Issuer's Financial Advisor in accordance with the terms and provisions of the
Official Notice of Sale; provided, however, the Series 2019 Bonds shall not be awarded
to any bidder unless the net interest cost with respect to the Series 2019 Bonds (as
calculated by the Issuer's Financial Advisor) is equal to or less than 5.00%. In accordance
with the provisions of the Official Notice of Sale, the County Manager may, in his sole
discretion, reject any and all bids.
SECTION 6. REDEMPTION PROVISIONS FOR SERIES 2019
BONDS. The Series 2019 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 County Manager, in his discretion
and upon the advice of the Financial Advisor; provided, however, with respect to optional
redemption terms for the Series 2019 Bonds, if any, the first optional redemption date
may be no later than July 1, 2029 and there shall be no call premium relating to any
redemption. Terms Bonds may be established in accordance with the provisions of the
Official Notice of Sale. The redemption provisions for the Series 2019 Bonds, if any,
shall be set forth in the Award Certificate and in the final Official Statement.
Notwithstanding the foregoing, the County Manager, upon the advice of the Financial
Advisor, may determine to issue the Series 2019 Bonds without any optional redemption
provisions.
SECTION 7. FULL BOOK-ENTRY. Notwithstanding the provisions set
forth in Section 2.08 of the Resolution, the Series 2019 Bonds shall be initially issued in
the form of a separate single certificated fully registered Series 2019 Bond for each of the
maturities of the Series 2019 Bonds. Upon initial issuance, the ownership of each such
Bond shall be registered in the registration books kept by the Registrar in the name of
Cede & Co., as nominee of The Depository Trust Company ("DTC"). As long as the
Series 2019 Bonds are registered in the name of Cede & Co., all of the Outstanding
Series 2019 Bonds shall be registered in the registration books kept by the Registrar in
the name of Cede & Co., all payments of principal on the Series 2019 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 2019 Bonds, upon presentation of the Series 2019 Bonds to be paid,
to the Paying Agent.
9.A.1
Packet Pg. 41 Attachment: Supplemental Resolution for Water-Sewer Bonds Series 2019 (8197 : Resolution to authorize Water-Sewer Bonds to fund
6
With respect to Series 2019 Bonds registered in the registration books kept by the
Registrar in the name of Cede & Co., as nominee of DTC, the Issuer, the Registrar and
the Paying Agent shall have no responsibility or obligation to any direct or indirect
participant in the DTC book-entry program (the "Participants"). Without limiting the
immediately preceding sentence, the Issuer, the Registrar and the Paying Agent shall
have no responsibility or obligation with respect to (A) the accuracy of the records of
DTC, Cede & Co. or any Participant with respect to any ownership interest on the Series
2019 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 2019 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 2019 Bonds. The Issuer, the Registrar
and the Paying Agent may treat and consider the Person in whose name each Series 2019
Bond is registered in the registration books kept by the Registrar as the Holder and
absolute owner of such Bond for the purpose of payment of principal, Redemption Price,
if any, and interest with respect to such Bond, for the purpose of giving notices of
redemption and other matters with respect to such Bond, for the purpose of registering
transfers with respect to such Bond, and for all other purposes whatsoever. The Paying
Agent shall pay all principal of, Redemption Price, if any, and interest on the Series 2019
Bonds only to or upon the order of the respective Holders, as shown in the registration
books kept by the Registrar, or their respective attorneys duly authorized in writing, as
provided herein and all such payments shall be valid and effective to fully satisfy and
discharge the Issuer's obligations with respect to payment of principal of, Redemption
Price, if any, and interest on the Series 2019 Bonds to the extent of the sum or sums so
paid. No Person other than a Holder, as shown in the registration books kept by the
Registrar, shall receive a certificated Bond evidencing the obligation of the Issuer to
make payments of principal, Redemption Price, if any, and interest pursuant to the
provisions of the Resolution. Upon delivery by DTC to the Issuer of written notice to the
effect that DTC has determined to substitute a new nominee in place of Cede & Co., and
subject to the provisions in the Resolution with respect to transfers during the 15 days
next preceding an Interest Date or first mailing of notice of redemption, the words "Cede
& Co." in this Supplemental Resolution shall refer to such new nominee of DTC; and
upon receipt of such notice, the Issuer shall promptly deliver a copy of the same to the
Registrar and the Paying Agent.
Upon (A) receipt by the Issuer of written notice from DTC (i) to the effect that a
continuation of the requirement that all of the outstanding Series 2019 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 2019
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
9.A.1
Packet Pg. 42 Attachment: Supplemental Resolution for Water-Sewer Bonds Series 2019 (8197 : Resolution to authorize Water-Sewer Bonds to fund
7
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 2019 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 2019 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 2019 Bonds.
SECTION 8. APPLICATION OF SERIES 2019 BOND PROCEEDS.
The proceeds derived from the sale of the Series 2019 Bonds shall be applied by the
Issuer as follows:
(A) A sufficient amount of the Series 2019 Bond proceeds shall be deposited in
the "2019 Project Account" of the Construction Fund, which 2019 Project Account is
hereby established. Such proceeds shall be used to pay Costs of the Project and the 2019
Project Account shall be administered in accordance with the provisions of Section 4.03
of the Resolution.
(B) A sufficient amount of the Series 2019 Bond proceeds shall be deposited to
the Reserve Account to cause the amount on deposit therein to equal the Reserve Account
Requirement for all Outstanding Parity Bonds, including the Series 2019 Bonds.
(C) A sufficient amount of the Series 2019 Bond proceeds shall be applied to
the payment of costs and expenses relating to the issuance of the Series 2019 Bonds.
Any Series 2019 Bond Proceeds that remain after all costs of issuance have been paid
shall be transferred to the 2019 Project Account.
SECTION 9. PRELIMINARY OFFICIAL STATEMENT. The Issuer
hereby authorizes the distribution and use of the Preliminary Official Statement in
substantially the form attached hereto as Exhibit C in connection with the offering of the
Series 2019 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 Chairman and the County Manager are each hereby
authorized to approve such insertions, changes and modifications. The Chairman and the
County Manager are each hereby authorized to deem the Preliminary Official Statement
"final" within the meaning of Rule 15c2-12(b)(1) under the Securities Exchange Act of
1934 in the form as mailed. Execution of a certificate by the Chairman or the County
9.A.1
Packet Pg. 43 Attachment: Supplemental Resolution for Water-Sewer Bonds Series 2019 (8197 : Resolution to authorize Water-Sewer Bonds to fund
8
Manager deeming the Preliminary Official Statement "final" as described above shall be
conclusive evidence of the approval of any insertions, changes or modifications.
SECTION 10. OFFICIAL STATEMENT. The form, terms and provisions
of the Official Statement relating to the Series 2019 Bonds shall be substantially as set
forth in the Preliminary Official Statement and shall include all of the specific financial
terms of the Series 2019 Bonds. Subject in all respects to the award of the Series 2019
Bonds in accordance with this Supplemental Resolution and the Official Notice of Sale,
the Chairman is hereby authorized and directed to execute and deliver said Official
Statement in the name and on behalf of the Issuer, and thereupon to cause such Official
Statement to be delivered to the Underwriters with such changes, amendments,
modifications, omissions and additions as may be approved by the Chairman. Said
Official Statement, including any such changes, amendments, modifications, omissions
and additions as approved by the Chairman and the information contained therein are
hereby authorized to be used in connection with the sale of the Series 2019 Bonds to the
public. Execution by the Chairman of the Official Statement shall be deemed to be
conclusive evidence of approval of such changes.
SECTION 11. OFFICIAL NOTICE OF SALE. The form of the Official
Notice of Sale attached hereto as Exhibit B and the terms and provisions thereof are
hereby authorized and approved. The County Manager is hereby authorized to make
such changes, insertions and modifications as he shall deem necessary prior to the
advertisement of such Official Notice of Sale or a summary thereof. The County
Manager is hereby authorized to cause the advertisement and publication of 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 2019 Bonds.
SECTION 12. APPOINTMENT OF PAYING AGENT AND
REGISTRAR. Subject in all respects to the award of the Series 2019 Bonds in
accordance with this Supplemental Resolution and the Official Notice of Sale, TD Bank,
N.A., Cherry Hill, New Jersey, is hereby designated Registrar and Paying Agent for the
Series 2019 Bonds. The Chairman and/or the Clerk are hereby authorized to enter into
any agreement which may be necessary to effect the transactions contemplated by this
Section 12 and by the Resolution.
SECTION 13. SECONDARY MARKET DISCLOSURE. Subject in all
respects to the award of the Series 2019 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 2019
Bonds, as it may be amended from time to time in accordance with the terms thereof.
9.A.1
Packet Pg. 44 Attachment: Supplemental Resolution for Water-Sewer Bonds Series 2019 (8197 : Resolution to authorize Water-Sewer Bonds to fund
9
The Continuing Disclosure Certificate shall be substantially in the form attached hereto
as Exhibit D with such changes, amendments, modifications, omissions and additions as
shall be approved by the Chairman who is hereby authorized to execute and deliver such
Certificate. Notwithstanding any other provision of the Resolution, failure of the Issuer
to comply with such Continuing Disclosure Certificate shall not be considered an Event
of Default under the Resolution; provided, however, any Series 2019 Bondholder may
take such actions as may be necessary and appropriate, including seeking mandate or
specific performance by court order, to cause the Issuer to comply with its obligations
under this Section 13 and the Continuing Disclosure Certificate. For purposes of this
Section 13, "Series 2019 Bondholder" shall mean any Person who (A) has the power,
directly or indirectly, to vote or consent with respect to, or to dispose of ownership of,
any Series 2019 Bonds (including persons holding Series 2019 Bonds through nominees,
depositories or other intermediaries), or (B) is treated as the owner of any Series 2019
Bonds for federal income tax purposes.
SECTION 14. GENERAL AUTHORITY. The members of the Governing
Body, the County Manager, the Clerk and the officers, attorneys and other agents or
employees of the Issuer are hereby authorized to do all acts and things required of them
by this Supplemental Resolution, the Resolution, the Official Notice of Sale, the Official
Statement, the Escrow Deposit Agreement or the Continuing Disclosure Certificate or
desirable or consistent with the requirements hereof or the Resolution, the Official Notice
of Sale, the Official Statement, the Escrow Deposit Agreement or the Continuing
Disclosure Certificate for the full punctual and complete performance of all the terms,
covenants and agreements contained herein or in the Series 2019 Bonds, the Resolution,
the Official Notice of Sale, the Official Statement, the Escrow Deposit Agreement and
the Continuing Disclosure Certificate and each member, employee, attorney and officer
of the Issuer or the Governing Body and the Clerk is hereby authorized and directed to
execute and deliver any and all papers and instruments and to do and cause to be done
any and all acts and things necessary or proper for carrying out the transactions
contemplated hereunder. If the County Manager is unavailable or unable at any time to
perform any duties or functions hereunder, including but not limited to those described in
Sections 4, 5 and 6 hereof, the Chairman is hereby authorized to act on his behalf. Bond
Counsel and the Issuer's Financial Advisor are hereby authorized and directed to take all
action necessary and desirable to carry-out the intent and purposes of this Supplemental
Resolution.
SECTION 15. 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
9.A.1
Packet Pg. 45 Attachment: Supplemental Resolution for Water-Sewer Bonds Series 2019 (8197 : Resolution to authorize Water-Sewer Bonds to fund
10
shall in no way affect the validity of any of the other provisions hereof or of the Series
2019 Bonds.
SECTION 16. RESOLUTION TO CONTINUE IN FORCE. Except as
herein expressly provided, the Resolution and all the terms and provisions thereof are and
shall remain in full force and effect.
SECTION 17. EFFECTIVE DATE. This Supplemental Resolution shall
become effective immediately upon its adoption.
DULY ADOPTED this 12th day of March, 2019.
BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA, AS THE
EX-OFFICIO CHAIRMAN OF THE
GOVERNING BOARD OF THE COLLIER
COUNTY WATER-SEWER DISTRICT
William L. McDaniel, Jr., Chairman
ATTEST:
Crystal K. Kinzel, Clerk
Approved as to form and legal sufficiency:
Jeffrey A. Klatzkow, County Attorney
9.A.1
Packet Pg. 46 Attachment: Supplemental Resolution for Water-Sewer Bonds Series 2019 (8197 : Resolution to authorize Water-Sewer Bonds to fund
EXHIBIT A
GENERAL DESCRIPTION OF THE PROJECT
Pipes
The expansion of the northeast utility infrastructure includes construction of
potable water transmission mains, wastewater collection force mains and irrigation water
transmission mains in five segments to be completed by the end of calendar 2020:
Segment 1: a potable water transmission main, wastewater collection force main and
irrigation water main along 39th Avenue from Immokalee Road to the Big Corkscrew
Island Regional Park (BCIRP), connecting with existing mains on Immokalee Road and
39th Ave.
Segment 2: continuation of the segment 1 pipes through the BCIRP to the
northeast utility site, with the addition of potable water mains, wastewater force
mains and irrigation water mains within the BCIRP to provide utility services to
the park.
Segments 4 and 5: water transmission mains, wastewater collection force mains
and irrigation water transmission mains north from the utility site along 20 th Street
NE, 47th Avenue NE and 16th Street NE to serve the Immokalee Road Rural
Village; north along Everglades Boulevard to serve Hogan Island Village, and east
along 41st Avenue NW to serve Hyde Park Village and Collier Village.
Treatment, Storage and Pumping Facilities
Expansion of the utility vertical facilities necessary to provide potable water,
wastewater and irrigation water production and treatment at the CCWSD owned
northeast utility site included in Segment 3 of the design/build project are:
A 7.5 MG potable water storage tank, high service pump and chemical booster
station (in advance of a permanent regional potable water treatment plant
anticipated to be online by 2028).
Two interim 0.75 MGD wastewater treatment package plants, with discharge of
effluent to Rapid Infiltration Basins (RIBs) (in advance of a regional wastewater
treatment plant anticipated to be online by 2025).
An irrigation water storage tank, high service pump station and chemical treatment
facility.
Long lead time pipes necessary to complete construction within the BCIRP are in
order to complete underground utility infrastructure prior to construction of the park
itself.
9.A.2
Packet Pg. 47 Attachment: EXHIBIT A - Project Description (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
EXHIBIT B
FORM OF OFFICIAL NOTICE OF SALE
9.A.3
Packet Pg. 48 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
Collier County Water-Sewer District Water and Sewer Revenue Bonds, Series 2019 - Official Notice of Sale Page 1
OFFICIAL NOTICE OF SALE
$__________*
Collier County Water-Sewer District
Water and Sewer Revenue Bonds,
Series 2019
Electronic Bids, as Described Herein, Will Be Accepted Until
[10:00 a.m.] Eastern Daylight Savings Time, April _, 2019*
____________________
*Preliminary, subject to change.
9.A.3
Packet Pg. 49 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
Collier County Water-Sewer District Water and Sewer Revenue Bonds, Series 2019 - Official Notice of Sale Page 2
OFFICIAL NOTICE OF SALE
$__________*
Collier County Water-Sewer District
Water and Sewer Revenue Bonds,
Series 2019
NOTICE IS HEREBY GIVEN that electronic bids will be received in the manner, on the date
and up to the time specified below:
DATE: April _, 2018*
TIME: [10:00 a.m.] Eastern Daylight Savings Time*
ELECTRONIC BIDS: May be submitted only through BiDCOMP/Parity® Electronic Bid
Submission System (the "Parity System") as described below. No
other form of bid or provider of electronic bidding services will be
accepted.
GENERAL
Bids will be received at the office of the County Manager of Collier County, Florida
(the "County"), Collier County Government Complex, 3299 Tamiami Trail East, Naples,
Florida 34112, for the purchase of all, but not less than all, of the $__________* Collier
County Water-Sewer District Water and Sewer Revenue Bonds, Series 2019 (the "Bonds") to
be issued by the Collier County Water-Sewer District (the "District") pursuant to the terms and
conditions of Resolution No. CWS-85-13, adopted by the Board of County Commissioners of
Collier County, Florida, acting as the ex-officio governing board of the District (the
"Governing Body") on December 26, 1985, as amended and supplemented, particularly as
supplemented by Resolution 2019-_____/CWS Resolution 2019-_____ adopted by the
Governing Body on March 12, 2019 (collectively, the "Bond Resolution"). Such bids will be
opened in public in accordance with applicable legal requirements.
The Bond proceeds will be used for the acquisition, construction and equipping of
various utility capital improvements within the northeast area of Collier County, Florida (the
"County"), as more particularly described in the Bond Resolution and the plans and
specifications on file with the County, as the same may be amended or modified from time to
time and to pay costs of issuing the Bonds.
The Bonds are more particularly described in the Preliminary Official Statement dated
March __, 2019 (the "Preliminary Official Statement") relating to the Bonds, available from
the District's financial advisor, PFM Financial Advisors LLC, at (786) 671-7480 or
masvidals@pfm.com. This Official Notice of Sale contains certain information for quick
reference only. It is not, and is not intended to be, a summary of the Bonds. Each bidder is
required to read the entire Preliminary Official Statement to obtain information essential to
making an informed investment decision.
____________________
*Preliminary, subject to change.
9.A.3
Packet Pg. 50 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
Collier County Water-Sewer District Water and Sewer Revenue Bonds, Series 2019 - Official Notice of Sale Page 3
Prior to accepting bids, the District reserves the right to change the principal amount of
the Bonds being offered and the terms of the Bonds, to postpone the sale to a later date or time,
or cancel the sale. Notice of a change or cancellation will be announced via The Bond Buyer
news service at the internet website address www.tm3.com, not later than 12:00 p.m., Eastern
Daylight Savings Time, on the day preceding the bid opening or as soon as practicable. Such
notice will specify the revised principal amount or terms, if any, and any later date or time
selected for the sale, which may be postponed or cancelled in the same manner. If the sale is
postponed, a later public sale may be held at the hour, in the manner, and on such date as
communicated upon at least twenty-four (24) hours' notice via The Bond Buyer news service at
the internet website address www.tm3.com. The District reserves the right, after the bids are
opened, to adjust the principal amount of the Bonds, as further described herein. See
"ADJUSTMENT OF AMOUNTS AND MATURITIES."
To the extent any instructions or directions set forth in the Parity System conflict with
this Official Notice of Sale, the terms of this Official Notice of Sale shall control. For further
information about the Parity System and to subscribe in advance of the bid, potential bidders
may contact the Parity System at (212) 849-5021.
Each prospective electronic bidder must be a subscriber to the Parity System. Each
qualified prospective electronic bidder shall be solely responsible to make necessary
arrangements to view the bid form on the Parity System and to access the Parity System for the
purposes of submitting its bid in a timely manner and in compliance with the requirements of
the Official Notice of Sale. Neither the District nor the Parity System shall have any duty or
obligation to provide or assure access to the Parity System to any prospective bidder, and
neither the District nor the Parity System shall be responsible for a bidder's failure to register to
bid or for proper operation of, or have any liability for any delays or interruptions of, or any
damages caused by, the Parity System. The District is using the Parity System as a
communication mechanism, and not as the District's agent, to conduct the electronic bidding
for the Bonds. The District is not bound by any advice and determination of the Parity System
to the effect that any particular bid complies with the terms of this Official Notice of Sale and,
in particular, the bid specifications hereinafter set forth. All costs and expenses incurred by
prospective bidders in connection with their registration and submission of bids via the Parity
System are the sole responsibility of such bidders and the District shall not be responsible,
directly or indirectly, for any such costs or expenses. If a prospective bidder encounters any
difficulty in submitting, modifying or withdrawing a bid for the Bonds, the prospective bidder
should immediately telephone the Parity System at (212) 849-5021, and notify the District's
Financial Advisor, PFM Financial Advisors LLC, at (786) 671-7480 or masvidals@pfm.com.
The District shall have no responsibility for technological or transmission errors that any
bidder may experience in transmitting a bid. The use of the Parity System shall be at the
bidder's risk and expense, and the District shall have no liability with respect thereto.
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 April ___, 2019), 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
9.A.3
Packet Pg. 51 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
Collier County Water-Sewer District Water and Sewer Revenue Bonds, Series 2019 - Official Notice of Sale Page 4
limitations specified below, payable as shown on the Summary Table set forth herein. Interest
will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds must
meet the minimum and maximum coupon and reoffering price criteria shown in the Summary
Table on a maturity and aggregate basis.
The Bonds will mature on the dates, in the years and principal amounts shown on the
Summary Table as serial bonds except as otherwise combined into term bonds as described
under "STRUCTURE" below.
STRUCTURE
Any two to five consecutive maturities of the Bonds bearing interest at the same rate
may be combined, at the option of the bidder, into term bonds with mandatory sinking fund
installments equal to the amounts and years specified in the Official Notice of Sale combined
to form a term bond.
OPTIONAL REDEMPTION
The Bonds maturing on or after July 1, _____ are subject to redemption in whole or in
part, at any time, on or after July 1, _____, in such order of maturities as may be determined by
the District (less than all of a single maturity to be selected by lot), at a Redemption Price equal
to 100% of the principal amount of the Bonds to be redeemed plus accrued interest to the date
fixed for redemption, without premium.
SECURITY
Bonds will be payable from and will be secured by a pledge of and lien upon the
Pledged Funds (as defined in the Bond Resolution) which include the Net Revenues (as
defined in the Bond Resolution) and other amounts derived from the operation of the System
(as defined in the Bond Resolution), and moneys on deposit in certain funds and accounts
established under the Bond Resolution, on a parity with the District's Water and Sewer
Refunding Revenue Bond, Series 2013, Water and Sewer Refunding Revenue Bond,
Series 2015, Water and Sewer Refunding Revenue Bonds, Series 2016 and Water and Sewer
Revenue Bond, Series 2018 and any Additional Bonds (as defined in the Bond Resolution)
subsequently issued pursuant to the Bond Resolution , all in the manner and to the extent
provided in the Bond Resolution and as described in the Preliminary Official Statement.
See the Preliminary Official Statement for more information regarding the security for
the Bonds.
9.A.3
Packet Pg. 52 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
Collier County Water-Sewer District Water and Sewer Revenue Bonds, Series 2019 - Official Notice of Sale Page 5
Summary Table
If numerical or date references contained in the body of this Official Notice of Sale conflict with this Summary Table , the body of this
Official Notice of Sale shall control. Consult the body of this Official Notice of Sale for a detailed explanation of the items contained in
the Summary Table, including interpretation of such items and methodologies used to determine such items. Prospective purchasers of the
bonds must read the entire Official Notice of Sale and the entire Preliminary Official Statement.
Terms of the Bonds
Dated Date: Date of Delivery
Anticipated Date of Delivery: April _, 2019*
Interest Payment Dates: July 1 and January 1, commencing July 1, 2019
Principal Payment Dates (July 1):
Year* Principal Amount*
Interest Calculation: 360-day year of twelve 30-day months
Ratings: Moody's: __________
Fitch: __________
Bidding Parameters
Sale Date: April _, 2019*
Bidding Method: Parity System
All or none vs. Maturity-by-Maturity: All-or-none
Bid Award Method: Lowest true interest cost
Bid Confirmation: Fax or emailed (PDF) signed Official Confirmation of Bid
Bid Award: As soon as practicable on day of sale
Good Faith Deposit: $__________; See "GOOD FAITH DEPOSIT" herein
Coupon Multiples: 1/8 or 1/20 of 1%
Optional Redemption: Yes, on or after July 1, _____.
Term Bonds: Yes, at bidder's option. See "STRUCTURE" herein.
Maximum Reoffering Price: Maturity Unlimited
Aggregate Unlimited
Minimum Reoffering Price: Maturity [98%]
Aggregate [98%]
[Insurance: At bidder's option. See "MUNICIPAL BOND INSURANCE
OPTION" herein.]
Adjustment Parameters
Principal Increases: Maturity Unlimited
Aggregate 15.0%
Principal Reductions: Maturity Unlimited
Aggregate 15.0%
____________________
* Preliminary, subject to change.
**May be combined into term bonds. See "STRUCTURE" herein.
9.A.3
Packet Pg. 53 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
Collier County Water-Sewer District Water and Sewer Revenue Bonds, Series 2019 - Official Notice of Sale Page 6
ADJUSTMENT OF AMOUNTS AND MATURITIES
The aggregate principal amount of each maturity of Bonds is subject to adjustment
by the District after the receipt and opening of the bids for their purchase. Changes to be
made after the opening of the bids will be communicated to the successful bidder directly
prior to 8:00 a.m., Eastern Daylight Savings Time on the date following the sale date.
The District may cancel the sale of the Bonds or adjust the aggregate principal
amount. The District may increase or decrease the principal amount of the Bonds or any
maturity thereof by no more than the individual maturity or aggregate principal
percentages, if any, shown in the Summary Table. This may include the elimination of
one or more maturities. The District will consult with the successful bidder before
adjusting the amount of any maturity of the Bonds or canceling the Bonds; however, the
District reserves the sole right to make adjustments, within the limits described above, or
cancel the sale of the Bonds.
Adjustment to the size of the Bonds within the limits described above does not
relieve the purchaser from its obligation to purchase all of the Bonds offered by the
District.
Each bid must specify the initial reoffering prices to the public of each maturity of
Bonds. Adjustments may be made to the principal amounts based on the reoffering
prices shown on the Parity System. In determining whether there will be any revision to
the principal amount of or maturity of the Bonds subsequent to the bid opening and
award, the District expects that changes may be made that are necessary to increase or
decrease the principal amount of the Bonds to meet the District's funding objectives, all
subject to the limitations set forth above.
In the event that the principal amount of any maturity of the Bonds is revised after
the award, the interest rate and reoffering price for each maturity and the Underwriter's
Discount on the Bonds as submitted by the successful bidder shall be held constant. The
"Underwriter's Discount" shall be defined as the difference between the purchase price of
the Bonds submitted by the bidder and the price at which the Bonds will be issued to the
public, calculated from information provided by the bidder, divided by the par amount of
the Bonds bid.
FORM AND PAYMENT
The Bonds will be issued in fully registered, book-entry only form and a bond
certificate for each maturity will be issued to The Depository Trust Company, New York,
New York ("DTC"), registered in the name of its nominee, Cede & Co. A book-entry
system will be employed, evidencing ownership of the Bonds, with transfers of
ownership effected on the records of DTC and its participants pursuant to rules and
procedures adopted by DTC and its participants. The successful bidder, as a condition to
delivery of the Bonds, will be required to deposit the Bond certificates with DTC or the
9.A.3
Packet Pg. 54 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
Collier County Water-Sewer District Water and Sewer Revenue Bonds, Series 2019 - Official Notice of Sale Page 7
Registrar (as defined below), registered in the name of Cede & Co. Principal of,
premium, if any, and interest on the Bonds will be payable by TD Bank, N.A., Cherry
Hill, New Jersey, the paying agent and registrar (the "Paying Agent" or the "Registrar")
for the Bonds by wire transfer or in clearinghouse funds to DTC or its nominee as
registered owner of the Bonds. Transfer of principal, premium, if any, and interest
payments to the beneficial owners by participants of DTC will be the responsibility of
such participants and other nominees of beneficial owners. Neither the District nor the
Registrar will be responsible or liable for payments by DTC to its participants or by DTC
participants to beneficial owners or for maintaining, supervising or reviewing the records
maintained by DTC, its participants or persons acting through such participants.
Principal of, and premium, if any, on the Bonds will be payable upon presentation
and surrender thereof at the designated corporate office of the Registrar on the dates, in
the years and amounts established in accordance with the award of the Bonds. Interest on
the Bonds is payable on the dates shown in the Summary Table. The Paying Agent will
mail interest payments on the Bonds on each interest payment date to the owners of the
Bonds at the addresses listed on the registration books maintained by the Registrar for
such purpose at the close of business on the date which shall be the fifteenth day (whether
or not a business day) of the calendar month next proceeding the applicable payment
date, or, at the request of the holder of Bonds, by bank wire transfer to the account of
such holder, all as described in the Bond Resolution. So long as DTC or its nominee is
the registered owner of the Bonds, payments of principal, interest and any redemption
premium on the Bonds will be made by the Paying Agent to DTC or its nominee.
PRELIMINARY OFFICIAL STATEMENT AND FINAL OFFICIAL
STATEMENT
The District has authorized the preparation and distribution of a Preliminary
Official Statement containing information relating to the Bonds. The Preliminary
Official Statement has been deemed final by the District as required by Rule 15c2-12 of
the Securities and Exchange Commission. The District will furnish the successful bidder
on the date of closing, with its certificate as to the completeness and accuracy of the
Official Statement.
The Preliminary Official Statement and this Official Notice of Sale and any other
information concerning the proposed financing will be available from PFM Financial
Advisors LLC, Financial Advisor to the District, 2222 Ponce de Leon Boulevard, Third
Floor, Coral Gables, Florida 33134, telephone: (786) 671-7480 or email
masvidals@pfm.com.
The Preliminary Official Statement, when amended to reflect the actual amount of
the Bonds sold, the interest rates specified by the successful bidder and the price or yield
at which the successful bidder will reoffer the Bonds to the public, together with any
other information required by law, will constitute a final "Official Statement" with
9.A.3
Packet Pg. 55 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
Collier County Water-Sewer District Water and Sewer Revenue Bonds, Series 2019 - Official Notice of Sale Page 8
respect to the Bonds as that term is defined in Rule 15c2 -12. The District shall furnish at
its expense within seven (7) business days after the Bonds have been awarded to the
successful bidder no more than 50 copies of the final Official Statement. Additional
copies of the Official Statement may be provided at the request and expense of the
winning bidder. If the Bonds are awarded to a syndicate, the District will designate the
senior managing underwriter of the syndicate as its agent for purposes of distributing
copies of the Official Statement to each participating underwriter. Any underwriter
submitting a bid with respect to the Bonds agrees thereby that if its bid is accepted, it
shall accept such designation and shall enter into a contractual relationship with all
participating underwriters for the purpose of assuring the receipt and distribution by each
participating underwriter of the Official Statement.
LEGAL OPINIONS
The Bonds will be sold subject to the opinion of Nabors, Giblin & Nickerson,
P.A., the District's Bond Counsel, as to the legality thereof and such opinion will be
furnished without cost to the purchaser and all bids will be so conditioned. A form of
Bond Counsel's opinion is attached to the Preliminary Official Statement as Appendix D.
Certain matters will be passed on for the District by Jeffrey A. Klatzkow, Esq., County
Attorney and Bryant Miller Olive P.A., the District's Disclosure Counsel.
A legal opinion (or reliance letter thereon) of Bryant Miller Olive P.A., Tampa,
Florida, Disclosure Counsel, and a legal opinion of Jeffrey A. Klatzkow, Esq., County
Attorney, with respect to certain matters concerning the Official Statement will be
furnished without charge to the successful bidder at the time of delivery of the Bonds.
MUNICIPAL BOND INSURANCE OPTION
The purchase of municipal bond insurance, if available, will be at the option and
expense of the bidder. The successful bidder will be responsible for the payment of all
costs associated with any such insurance, including the premium charged by the insurer.
The bidder understands, by submission of its bid, that the bidder is solely responsible for
the selection of any insurer and for all negotiations with the insurer as to the premium to
be paid. If all or a portion of the Bonds are awarded on an insured basis, none of the
provisions of the Bond Resolution nor any other financing document will be altered nor
will the District consent to make additional representations, undertakings or warranties.
In addition, if the successful bidder is arranging for bond insurance for all or a
portion of the Bonds, it also shall provide the amount of the premium to be paid and
certification that the present value of the premium is less than the present value of the
interest reasonably expected to be saved as a result of the insurance and that the premium
does not exceed a reasonable arms-length charge for the transfer of credit risk
accomplished through bond insurance.
9.A.3
Packet Pg. 56 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
Collier County Water-Sewer District Water and Sewer Revenue Bonds, Series 2019 - Official Notice of Sale Page 9
BIDDING PROCEDURE
Only electronic bids submitted via the Parity System will be accepted. No other
provider of electronic bidding services will be accepted. No bid delivered in person or by
facsimile directly to the District will be accepted. Bidders are permitted to submit bids
for the Bonds during the bidding time period, provided they are eligible to bid as
described under "GENERAL" above. Each electronic bid submitted via the Parity
System shall be deemed an irrevocable offer in response to this Official Notice of Sale
and shall be binding upon the bidder as if made by a signed, sealed bid delivered to the
District. All bids remain firm until an award is made.
FORM OF BID
Bidders must bid to purchase all maturities of the Bonds. Each bid must specify
(1) an annual rate of interest for each maturity, (2) reoffering price or yield for each
maturity and (3) a dollar purchase price for the entire issue of the Bonds. No more than
one (1) bid from any bidder will be considered.
A bidder must specify the rate or rates of interest per annum (with no more than
one rate of interest per maturity), which the Bonds are to bear, to be expressed in
multiples of 1/8 or 1/20 of 1%. Any number of interest rates may be named, but the
Bonds of each maturity must bear interest at the same single rate for all bonds of that
maturity.
Each bid for the Bonds must meet the minimum and maximum reoffering price
criteria shown in the Summary Table on a maturity and aggregate basis.
Each bidder must specify, as part of its bid, the prices or yields at which a
substantial amount (i.e., at least 10%) of the Bonds of each maturity will be offered and
sold to the public. Reoffering prices presented as a part of the bids will not be used in
computing the bidder's true interest cost. As promptly as reasonably possible after bids
are received, the District will notify the successful bidder that it is the apparent winner.
AWARD OF BID
The District expects to award the Bonds to the winning bidder as soon as
practicable after the bids are opened on the sale date. Bids may not be withdrawn prior to
the award. Unless all bids are rejected, the Bonds will be awarded by the District on the
sale date to the bidder whose bid complies with this Official Notice of Sale and results in
the lowest true interest cost ("TIC") to the District. The lowest TIC will be determined
by doubling the semi-annual interest rate, compounded semi-annually, necessary to
discount the debt service payments from the payment dates to the dated date of the Bonds
and to the aggregate purchase price of the Bonds. If two or more responsible bidders
offer to purchase the Bonds at the same lowest TIC, the District will award the Bonds to
9.A.3
Packet Pg. 57 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
Collier County Water-Sewer District Water and Sewer Revenue Bonds, Series 2019 - Official Notice of Sale Page 10
one of such bidders by lot. Only the final bid submitted by any bidder through the Parity
System will be considered. The right reserved to the District shall be final and binding
upon all bidders with respect to the form and adequacy of any proposal received and as in
its conformity to the terms of this Official Notice of Sale.
RIGHT OF REJECTION
THE DISTRICT RESERVES THE RIGHT, IN ITS DISCRETION, TO REJECT
ANY AND ALL BIDS, FOR ANY REASON, AND TO WAIVE IRREGULARITY OR
INFORMALITY IN ANY BID.
DELIVERY AND PAYMENT
Delivery of the Bonds will be made by the District to DTC in book-entry only
form, in New York, New York on or about the delivery date shown in the Summary
Table, or such other date agreed upon by the District and the successful bidder. Payment
for the Bonds must be made in Federal Funds or other funds immediately available to the
District at the time of delivery of the Bonds. Any expenses incurred in providing
immediate funds, whether by transfer of Federal Funds or otherwise, will be borne by the
purchaser. The District intends to conduct the closing in Naples, Florida.
RIGHT OF CANCELLATION
The successful bidder will have the right, at its option, to cancel its obligation to
purchase the Bonds if the Registrar fails to authenticate the Bonds and tender the same
for delivery within 60 days from the date of sale thereof , and in such event the successful
bidder will be entitled to the return of the Good Faith Deposit accompanying its bid.
GOOD FAITH DEPOSIT
The successful bidder for the Bonds is required to submit its Good Faith Deposit
(see Summary Table) to the District in the form of a wire transfer in federal funds not
later than 2:30 p.m., Eastern Daylight Savings Time, on the day of the award. If such
deposit is not received by that time, the District may reject such bid and award the Bonds
to the bidder that submitted the next best bid in accordance with the terms of the Official
Notice of Sale. Wiring instructions for the Good Faith Deposit are as follows:
Bank: First Florida Integrity Bank
Routing #: __________
Acct. Name: __________
Acct. #: __________
REF: __________
Attention: __________
9.A.3
Packet Pg. 58 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
Collier County Water-Sewer District Water and Sewer Revenue Bonds, Series 2019 - Official Notice of Sale Page 11
The Good Faith Deposit so wired will be retained by the District until the delivery
of such Bonds, at which time the good faith deposit will be applied against the purchase
price of such Bonds or the Good Faith Deposit will be retained by the District as partial
liquidated damages in the event of the failure of the successful bidder to take up and pay
for such Bonds in compliance with the terms of the Official Notice of Sale and of its bid.
The District will pay no interest on the good faith deposit. The balance of the purchase
price must be wired in federal funds to the account detailed in the closing memorandum
provided by the District to the successful purchaser, simultaneously with delivery of such
Bonds.
CUSIP NUMBERS
It is anticipated that CUSIP numbers will be printed on the Bonds, but neither
failure to print such numbers on any Bonds nor any error with respect thereto will
constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and
pay for the Bonds. Bond Counsel will not review or express any opinion as to the
correctness of such CUSIP numbers. The policies of the CUSIP Service Bureau will
govern the assignment of specific numbers to the Bonds. The District's Financial
Advisor will be responsible for applying for and obtaining CUSIP numbers for the
Bonds. All expenses in relation to the printing of CUSIP numbers on the Bonds will be
paid for by the District; provided, however, that the CUSIP Service Bureau charge for the
assignment of said numbers will be the responsibility of and will be paid for by the
successful bidder.
BLUE SKY
The District has not undertaken to register the Bonds under the securities laws of
any state, nor investigated the eligibility of any institution or person to purchase or
participate in the underwriting of the Bonds under any applicable legal investment,
insurance, banking or other laws. By submitting a bid for the Bonds, the successful
bidder represents that the sale of the Bonds in states other than Florida will be made only
under exemptions from registration or, wherever necessary, the successful bidder will
register the Bonds in accordance with the securities laws of the state in which the Bonds
are offered or sold. The District agrees to cooperate with the successful bidder, at the
bidder's written request and expense, in registering the Bonds or obtaining an exemption
from registration in any state where such action is necessary; provided, however, that the
District shall not be required to consent to suit or to service of process in any jurisdiction.
CERTAIN DISCLOSURE OBLIGATIONS OF THE PURCHASER
Section 218.38(1)(b)(2), Florida Statutes, requires that the successful purchaser
file a statement with the District containing information with respect to any fee, bonus or
gratuity paid, in connection with the Bonds, by any underwriter or financial consultant to
any person not regularly employed or engaged by such underwriter or consultant.
9.A.3
Packet Pg. 59 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
Collier County Water-Sewer District Water and Sewer Revenue Bonds, Series 2019 - Official Notice of Sale Page 12
Receipt of such statement is a condition precedent to the delivery of the Bonds to such
successful bidder.
The winning bidder must (1) complete the Truth-in-Bonding Statement provided
by Bond Counsel (the form of which is attached hereto as Exhibit A) and (2) indicate
whether such bidder has paid any finder's fee to any person in connection with the sale of
the Bonds in accordance with Section 218.386, Florida Statutes.
ESTABLISHMENT OF ISSUE PRICE
The winning bidder shall assist the District in establishing the issue price of the
Bonds and shall execute and deliver to the District on or prior to the closing date for the
Bonds an "issue price" or similar certificate setting forth the reasonably expected initial
offering prices to the public or the actual sales price or prices of the Bonds, together with
the supporting pricing wires or equivalent communications, substantially in the
applicable form attached hereto as Exhibit B, with such modifications as may be
appropriate or necessary, in the reasonable judgment of the winning bidder, the District
and Bond Counsel.
The District intends that the provisions of Treasury Regulation Section
1.148-1(f)(3)(i) (defining "competitive sale" for purposes of establishing the issue price
of the Bonds) will apply to the initial sale of the Bonds ("competitive sale requirements")
because:
(1) the District has disseminated this Official Notice of Sale to potential
underwriters in a manner that is reasonably designed to reach potential
underwriters;
(2) all bidders shall have an equal opportunity to bid;
(3) the District expects to receive bids from at least three underwriters of
municipal bonds who have established industry reputations for underwriting new
issuances of municipal bonds; and
(4) the District anticipates awarding the sale of the Bonds to the bidder
who submits a firm offer to purchase the Bonds at the lowest true interest cost, as
set forth in this Official Notice of Sale.
Any bid submitted pursuant to this Official Notice of Sale shall be considered a
firm offer for the purchase of the Bonds, as specified in the bid. BY SUBMITTING A
BID FOR THE BONDS, A BIDDER REPRESENTS AND WARRANTS TO THE
DISTRICT THAT THE BIDDER HAS AN ESTABLISHED INDUSTRY
REPUTATION FOR UNDERWRITING NEW ISSUANCES OF MUNICIPAL
BONDS SUCH AS THE BONDS AND SUCH BIDDER'S BID IS SUBMITTED
FOR AND ON BEHALF OF SUCH BIDDER BY AN OFFICER OR AGENT WHO
9.A.3
Packet Pg. 60 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
Collier County Water-Sewer District Water and Sewer Revenue Bonds, Series 2019 - Official Notice of Sale Page 13
IS DULY AUTHORIZED TO BIND THE BIDDER TO A LEGAL, VALID AND
ENFORCEABLE CONTRACT FOR THE PURCHASE OF THE BONDS. Once
the bids are communicated electronically via the Parity System to the District, each bid
will constitute an irrevocable offer to purchase the Bonds on the terms herein and therein
provided.
In the event that the competitive sale requirements are not satisfied, the District
shall so advise the winning bidder. In such case, the District shall treat the first price at
which 10% of a maturity of the Bonds is sold to the public (the "10% test") as the issue
price of that maturity, applied on a maturity-by-maturity basis. The winning bidder shall
advise the District if any maturity of the Bonds satisf ies the 10% test as of the date and
time of the award of the Bonds. The District will not require bidders to comply with the
"hold-the-offering-price rule" set forth in Treasury Regulation Section 1.148-1(f)(2)(ii)
and therefore does not intend to use the initial offering price to the public as of the sale
date of any maturity of the Bonds as the issue price of that maturity. Bids will not be
subject to cancellation by the bidders in the event that the competitive sale requirements
are not satisfied; provided, however, the District reserves the right to reject any and all
bids, for any reason, as set forth under "RIGHT OF REJECTION" herein . Bidders
should prepare their bids on the assumption that all of the maturities of the Bonds will be
subject to the 10% test in order to establish the issue price of the Bonds.
If the competitive sale requirements are not satisfied, then until the 10% test has
been satisfied as to each maturity of the Bonds, the winning bidder agrees to promptly
report to the District the prices at which the unsold Bonds of each maturity have been
sold to the public. That reporting obligation shall continue, whether or not the closing
date for the Bonds has occurred, until the 10% test has been satisfied for each maturity or
until all Bonds of that maturity have been sold.
By submitting a bid and if the competitive sale requirements are not met , each
bidder confirms that: (i) any agreement among underwriters, any selling group
agreement and each retail distribution agreement (to which the bidder is a party) relating
to the initial sale of the Bonds to the public, together with the related pricing wires,
contains or will contain language obligating each underwriter, each dealer who is a
member of the selling group, and each broker-dealer that is a party to such retail
distribution agreement, as applicable, to report the prices at which it sells to the public the
unsold Bonds of each maturity allotted to it until it is notified by the winning bidder that
either the 10% test has been satisfied as to the Bonds of that maturity or all Bonds of that
maturity have been sold to the public, if and for so long as directed by the winning bidder
and as set forth in the related pricing wires, and (ii) any agreement among underwriters
relating to the initial sale of the Bonds to the public, together with the related pricing
wires, contains or will contain language obligating each underwriter that is a party to a
retail distribution agreement to be employed in connection with the initial sale of the
Bonds to the public to require each broker-dealer that is a party to such retail distribution
9.A.3
Packet Pg. 61 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
Collier County Water-Sewer District Water and Sewer Revenue Bonds, Series 2019 - Official Notice of Sale Page 14
agreement to report the prices at which it sells to the public the unsold Bonds of each
maturity allotted to it until it is notified by the winning bidder or such underwriter that
either the 10% test has been satisfied as to the Bonds of that maturity or all Bonds of that
maturity have been sold to the public, if and for so long as directed by the winning bidder
or such underwriter and as set forth in the related pricing wires.
Sales of any Bonds to any person that is a related party to an underwriter shall not
constitute sales to the public for purposes of this Official Notice of Sale. Further, for
purposes of this Official Notice of Sale:
(i) "public" means any person other than an underwriter or a related
party (as defined in Section 1.150-1(b) of the Treasury Regulations) to an
underwriter,
(ii) "underwriter" means (A) any person that agrees pursuant to a written
contract (i.e. this Official Notice of Sale) with the District (or with the lead
underwriter to form an underwriting syndicate) to participate in the initial sale of
the Bonds to the public and (B) any person that agrees pursuant to a written
contract directly or indirectly with a person described in clause (A) to participate
in the initial sale of the Bonds to the public (including a member of a selling group
or a party to a retail distribution agreement participating in the initial sale of the
Bonds to the public),
(iii) generally, a purchaser of any of the Bonds is a "related party" to an
underwriter if the underwriter and the purchaser are subject, directly or indirectly,
to (i) at least 50% common ownership of the voting power or the total value of
their stock, if both entities are corporations (including direct ownership by one
corporation of another), (ii) more than 50% common ownership of their capital
interests or profits interests, if both entities are partnerships (including direct
ownership by one partnership of another), or (iii) more than 50% common
ownership of the value of the outstanding stock of the corporation or the capital
interests or profit interests of the partnership, as applicable, if one entity is a
corporation and the other entity is a partnership (including direct ownership of the
applicable stock or interests by one entity of the other), and
(iv) "sale date" means the date that the Bonds are awarded by the District
to the winning bidder.
CONTINUING DISCLOSURE
The District has covenanted to provide ongoing disclosure in accordance with
Rule 15c2-12 of the Securities and Exchange Commission. The specific nature of the
information to be contained in the annual report and the notices of material events are set
forth in the Continuing Disclosure Certificate which is reproduced in its entirety in
9.A.3
Packet Pg. 62 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
Collier County Water-Sewer District Water and Sewer Revenue Bonds, Series 2019 - Official Notice of Sale Page 15
Appendix E attached to the Preliminary Official Statement for the Bonds. The covenants
have been undertaken by the District in order to assist the successful purchaser in
complying with clause (b)(5) of Rule 15c2-12 of the Securities and Exchange
Commission.
CERTIFICATE
The District will deliver to the purchaser of the Bonds a certificate of an official of
the District, dated the date of delivery of said Bonds, stating that as of the date thereof, to
the best of the knowledge and belief of said official, the Official Statement does not
contain an untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements made therein, in light of the circumstances under which
they were made, not misleading, and further certifying that the signatory knows of no
material adverse change in the financial condition of the District.
CHOICE OF LAW
Any litigation or claim arising out of any bid submitted (regardless of the means of
submission) pursuant to this Official Notice of Sale shall be governed by and construed in
accordance with the laws of the State of Florida. The venue situs for any such action
shall be the state courts of the Twentieth Judicial Circuit in and for Collier County,
Florida.
NOTICE OF BIDDERS REGARDING PUBLIC ENTITY CRIMES
A person or affiliate who has been placed on the Convicted Vendor List (as
described in Florida Statutes) following a conviction for a public entity crime may not
submit a bid.
COLLIER COUNTY WATER-SEWER
DISTRICT
By: /s/ W. L. McDaniel, Jr., Chairman
Chairman, Board of County Commissioners
of Collier County, Florida, as the Ex-Officio
Chairman of the Governing Board of the
Collier County Water-Sewer District
Dated: March ___, 2019
9.A.3
Packet Pg. 63 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
A-1
EXHIBIT A
TRUTH-IN-BONDING STATEMENT
April _, 2019
Board of County Commissioners
of Collier County, Florida, as the Ex-Officio
Governing Board of the Collier County
Water-Sewer District
Re: Collier County Water-Sewer District Water and Sewer Revenue
Bonds, Series 2019
Dear Commissioners:
The purpose of the following two paragraphs is to furnish, pursuant to the
provisions of Sections 218.385(2) and (3), Florida Statutes, as amended, the truth-in-
bonding statement required thereby, as follows:
(a) The District is proposing to issue $_________ principal amount of the
above-referenced Bonds for the principal purposes of the acquisition, construction and
equipping of various utility capital improvements, as more particularly described in the
plans and specifications on file with the District, and paying certain costs of issuance of
the Bonds. This obligation is expected to be repaid over a period of approximately ____
years. At a true interest cost of ____%, total interest paid over the life of the obligation
will be approximately $_______________.
(b) The Bonds are special limited obligations of the District. The principal
source of repayment or security for the Bonds is certain net revenues and other amounts
derived from the operation of the System (as described in the Official Statement for the
Bonds). Authorizing this debt will result in approximately $___________ (representing
the average annual debt service with respect to the Bonds) of such moneys being used to
pay debt service on the Bonds each year for ______ years.
The foregoing is provided for information purposes only and shall not affect or
control the actual terms and conditions of the Bonds.
Very truly yours,
Underwriter
By:
Authorized Signatory
9.A.3
Packet Pg. 64 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
B-1
EXHIBIT B
FORM OF ISSUE PRICE CERTIFICATE
$__________
COLLIER COUNTY WATER-SEWER DISTRICT
WATER AND SEWER REVENUE BONDS, SERIES 2019
ISSUE PRICE CERTIFICATE
The undersigned, on behalf of __________ ("__________"), hereby represents and
warrants that it has an established industry reputation for underwriting new issuances of
municipal bonds and certifies as set forth below with respect to the sale of the above-
captioned obligations (the "Bonds").
[Alternate 1 - Competitive Safe Harbor Met]
[1. Reasonably Expected Initial Offering Price. (a) As of the Sale Date, the
reasonably expected initial offering prices of the Bonds to the Public by __________ are
the prices listed in Schedule A (the "Expected Offering Prices"). The Expected Offering
Prices are the prices for the Maturities of the Bonds used by __________ in formulating
its bid to purchase the Bonds. Attached as Schedule B is a true and correct copy of the
bid provided by __________ to purchase the Bonds.
(b) __________ was not given the opportunity to review other bids prior to
submitting its bid.
(c) The bid submitted by __________ constituted a firm offer to purchase the
Bonds.]
[Alternate 2 - Competitive Sale Requirements Not Met – General Rule to Apply]
[1. Sale of the Bonds. As of the date of this certificate, for each Maturity of
the Bonds, the first price at which at least 10% of such Maturity of the Bonds was sold to
the Public is the respective price listed in Schedule A. Each maturity of the Bonds of
which at least 10% of such maturity has not yet been sold to the public (the "Unsold
Bonds") is also identified in Schedule A. Attached as Schedule B are true and correct
copies of the bid provided by __________ to purchase the Bonds, and the pricing wire or
equivalent communication for the Bonds. __________ has and will comply with the
requirements set forth under the heading "Establishment of Issue Price Certificate" in the
Official Notice of Sale for the Bonds, including reporting on the sale prices of the Unsold
Bonds after the date hereof as provided therein.]
2. Defined Terms. (a) Issuer means Collier County Water-Sewer District.
9.A.3
Packet Pg. 65 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
B-2
(b) Maturity means Bonds with the same credit and payment terms. Bonds
with different maturity dates, or Bonds with the same maturity date but different stated
interest rates, are treated as separate Maturities.
(c) Public means any person (including an individual, trust, estate, partnership,
association, company, or corporation) other than an Underwriter or a related party to an
Underwriter. The term "related party" for purposes of this certificate generally means
any two or more persons who have greater than 50 percent common ownership , directly
or indirectly.
(d) Sale Date means the first day on which there is a binding contract in
writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is April _,
2019.
(e) Underwriter means (i) any person that agrees pursuant to a written contract
with the Issuer (or with the lead underwriter to form an underwriting syndicate) to
participate in the initial sale of the Bonds to the Public , and (ii) any person that agrees
pursuant to a written contract directly or indirectly with a person described in clause (i) of
this paragraph to participate in the initial sale of the Bonds to the Public (including a
member of a selling group or a party to a retail distribution agreement participating in the
initial sale of the Bonds to the Public).
The representations set forth in this certificate are limited to factual matters only.
Nothing in this certificate represents __________'s interpretation of any laws, including
specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and
the Treasury Regulations thereunder. The undersigned understands that the foregoing
information will be relied upon by the Issuer with respect to certain of the representations
set forth in the Certificate as to Arbitrage and Certain Other Tax Matters relating to the
Bonds and with respect to compliance with the federal income tax rules affecting the
Bonds, and by Nabors, Giblin & Nickerson, P.A. in connection with rendering its opinion
that the interest on the Bonds is excluded from gross income for federal income tax
purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal
income tax advice that it may give to the Issuer from time to time relating to the Bonds.
__________
By:
[Name]
Dated: __________, 2019
9.A.3
Packet Pg. 66 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
SCHEDULE A
EXPECTED OFFERING PRICES
OR
PRICES OF SOLD AND UNSOLD BONDS
9.A.3
Packet Pg. 67 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
SCHEDULE B
COPY OF UNDERWRITER'S BID AND PRICING WIRE
9.A.3
Packet Pg. 68 Attachment: EXHIBIT B - Form of Official Notice of Sale (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
EXHIBIT D
FORM OF CONTINUING DISCLOSURE CERTIFICATE
9.A.5
Packet Pg. 69 Attachment: EXHIBIT D - Form of Continuing Disclosure Certificate (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast
E-1
APPENDIX E
FORM OF CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by
Collier County Water-Sewer District (the "Issuer") in connection with the issuance of its $____________
Water and Sewer Revenue Bonds, Series 2019 (the "Bonds"). The Bonds are being issued pursuant to
Resolution No. CWS-85-5 adopted on July 30, 1985, as amended and restated by Resolution No.
CWS-85-13 adopted on December 26, 1985, as amended and supplemented, particularly as amended by
Resolution No. CWS-87-5 adopted on March 3, 1987, Resolution No. CWS -91-6 adopted on October 22,
1991 and Resolution No. CWS-2006-298 adopted on November 14, 2006, and particularly as
supplemented by Resolution No. 2019-___/CWS Resolution No. 2019-__ adopted on _____________, 2019
(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 (defined
below) of the Bonds and in order to assist the Participating Underwriters in complying with the
continuing disclosure requirements of the Rule (defined below).
SECTION 2. DEFINITIONS. In addition to the definitions set forth in the Resolution which
apply to any capitalized term used in this Disclosure Certificate, unless otherwise defined herein, the
following capitalized terms shall have the following meanings:
"Annual Report" shall mean any Annual Report provided by the Issue r pursuant to, and as
described in, Sections 3 and 4 of this Disclosure Certificate.
"Beneficial Owner" shall mean any person which (a) has the power, directly or indirectly, to vote
or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds
through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for
federal income tax purposes.
"Dissemination Agent" shall mean the Issuer, or any successor Dissemination Agent designate d
in writing by the Issuer and which has filed with the Issuer a written acceptance of such designation.
"EMMA" shall mean the Electronic Municipal Market Access web portal of the MSRB, located at
http://www.emma.msrb.org.
"Event of Bankruptcy" shall be considered to have occurred when any of the following occur: the
appointment of a receiver, fiscal agent or similar officer for an Obligated Person in a proceeding under
the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or
governmental authority has assumed jurisdiction over substantially all of the assets or business of the
Obligated Person, or if such jurisdiction has been assumed by leaving the existing governmental body
and officials or officers in possession but subject to the supervision and orders of a court or governmental
authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a
court or governmental authority having supervision or jurisdiction over substantially all of the assets or
business of the Obligated Person.
9.A.5
Packet Pg. 70 Attachment: EXHIBIT D - Form of Continuing Disclosure Certificate (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast
E-2
"Financial Obligation" shall mean a (i) debt obligation; (ii) derivative instrument entered into in
connection with, or pledged as security or a source of payment for, an existing or planned debt
obligation; or (iii) a guarantee of (i) or (ii). The term Financial Obligation shall not include municipal
securities as to which a final official statement has been provided to the Municipal Securities Rulema king
Board consistent with the Rule."Listed Events" shall mean any of the events listed in Section 5(a) of this
Disclosure Certificate.
"MSRB" shall mean the Municipal Securities Rulemaking Board.
"Obligated Person" shall mean any person, including the I ssuer, who is either generally or
through an enterprise, fund, or account of such person committed by contract or other arrangement to
support payment of all, or part of the obligations on the Bonds (other than providers of municipal bond
insurance, letters of credit, or other liquidity or credit facilities).
"Participating Underwriters" shall mean the original underwriters of the Bonds required to
comply with the Rule in connection with offering of the Bonds.
"Repository" shall mean each entity authorized and approved by the Securities and Exchange
Commission from time to time to act as a repository for purposes of complying with the Rule. As of the
date hereof, the Repository recognized by the Securities and Exchange Commission for such purpose is
the MSRB, which currently accepts continuing disclosure submissions through EMMA.
"Rule" shall mean the continuing disclosure requirements of Rule 15c2 -12 adopted by the
Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be
amended from time to time.
"State" shall mean the State of Florida.
SECTION 3. PROVISION OF ANNUAL REPORTS.
(a) The Issuer shall, or shall cause the Dissemination Agent to, not later than each April 30th,
commencing April 30, 2020 with respect to the report for the 2019 fiscal year, provide to any Repository
in the electronic format as required and deemed acceptable by such Repository an Annual Report which
is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annu al Report may be
submitted as a single document or as separate documents comprising a package, and may cross-reference
other information as provided in Section 4 of this Disclosure Certificate; provided that the audited
financial statements of the Issuer may be submitted separately from the balance of the Annual Report and
later than the date required above for the filing of the Annual Report if they are not available by that date
provided, further, in such event unaudited financial statements are required to be delivered as part of the
Annual Report in accordance with Section 4(a) below. If the Issuer's fiscal year changes, it shall give
notice of such change in the same manner as for a Listed Event under Section 5.
(b) If on the fifteenth (15th) day prior to the annual filing date, the Dissemination
Agent has not received a copy of the Annual Report, the Dissemination Agent shall contact the Issuer by
telephone and in writing (which may be by e-mail) to remind the Issuer of its undertaking to provide the
Annual Report pursuant to Section 3(a). Upon such reminder, the Issuer shall either (i) provide the
Dissemination Agent with an electronic copy of the Annual Report no later than two (2) business days
prior to the annual filing date, or (ii) instruct the Dissemination Agent in writing that the Issuer will not
9.A.5
Packet Pg. 71 Attachment: EXHIBIT D - Form of Continuing Disclosure Certificate (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast
E-3
be able to file the Annual Report within the time required under this Agreement, state the date by which
the Annual Report for such year will be provided and instruct the Dissemination Agent that a fa ilure to
file has occurred and to immediately send a notice to the Repository in substantially the form attached as
Exhibit A, accompanied by a cover sheet completed by the Dissemination Agent in the form set forth in
Exhibit B.
(c) The Dissemination Agent shall:
(i) determine each year prior to the date for providing the Annual Report the name
and address of any Repository;
(ii) if the Dissemination Agent is other than the Issuer, file a report with the Issuer
certifying that the Annual Report has been provided pursuant to this Disclosure Certificate,
stating the date it was provided and listing any Repository to which it was provided; and
(iii) if the Dissemination Agent has not received an Annual Report by 6:00 p.m.
Eastern time on the annual filing date (or, if such annual filing date falls on a Saturday, Sunday or
holiday, then the first business day thereafter) for the Annual Report, a failure to file shall have occurred
and the Issuer irrevocably directs the Dissemination Agent to immediately send a notice to the Repository
in substantially the form attached as Exhibit A without reference to the anticipated filing date for the
Annual Report, accompanied by a cover sheet completed by the Dissemination Agent in the form set
forth in Exhibit B.
SECTION 4. CONTENT OF ANNUAL REPORTS. The Issuer's Annual Report shall contain or
include by reference the following:
(a) the audited financial statements of the Issuer for the prior fiscal year, prepared in
accordance with generally accepted accounting principles as promulgated to apply to governmental
entities from time to time by the Governmental Accounting Standards Board. If the Issuer's audited
financial statements are not available by the time the Annual Report is required to be filed pursuant to
Section 3(a), the Annual Report shall contain unaudited financial statements in a format similar to the
financial statements contained in the final Official Statement dated _______________, 2019 (the "Official
Statement"), and the audited financial statements shall be filed in the same manner as the Annual Report
when they become available; and
(b) updates of the historical financial and operating data set forth in the Official Statement
under the captions:
(i) Historical Sewer System and Water System Equivalent Residential Connections and
Water and Sewer Accounts;
(ii) Monthly Water Rates;
(iii) Monthly Sewer Rate;
(iv) Monthly Reuse Irrigation Rates;
(v) Existing System Development Fees; and
(vi) Historical Operating Results.
The information provided under Section 4(b) may be included by specific reference to
documents, including official statements of debt issues of the Issuer or related public entities, which are
9.A.5
Packet Pg. 72 Attachment: EXHIBIT D - Form of Continuing Disclosure Certificate (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast
E-4
available to the public on the Repository's Internet Web site or filed with the Securities and Exchange
Commission.
The Issuer reserves the right to modify from time to time the specific types of information
provided in its Annual Report or the format of the presentation of such information, to the extent
necessary or appropriate in the judgment of the Issuer; provided that the Issuer agrees that any such
modification will be done in a manner consistent with the Rule.
SECTION 5. REPORTING OF SIGNIFICANT EVENTS.
(a) Pursuant to the provisions of this Section 5, the Issuer shall give, or cause to be
given, notice of the occurrence of any of the following events with respect to the Bonds. Such notice shall
be given in a timely manner not in excess of ten (10) business days after the occurrence of the event, with
the exception of the event described in number 15 below, which notice shall be given in a timely manner:
1. principal and interest payment delinquencies;
2. non-payment related defaults, if material;
3. unscheduled draws on debt service reserves reflecting financial difficulties;
4. unscheduled draws on credit enhancements reflecting financial difficulties;
5. substitution of credit or liquidity providers, or their failure to perform;
6. adverse tax opinions, the issuance by the Internal Revenue Service of proposed
or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701
TEB) or other material notices or determinations with respect to the tax status of
the Bonds, or other material events affecting the tax status of the Bonds;
7. modifications to rights of the holders of the Bonds, if material;
8. Bond calls, if material, and tender offers;
9. defeasances;
10. release, substitution, or sale of property securing repayment of the Bonds, if
material;
11. ratings changes;
12. an Event of Bankruptcy or similar event of an Obligated Person;
13. the consummation of a merger, consolidation, or acquisition involving an
Obligated Person or the sale of all or substantially all of the assets of the
Obligated Person, other than in the ordinary course of business, the e ntry into a
definitive agreement to undertake such an action or the termination of a
9.A.5
Packet Pg. 73 Attachment: EXHIBIT D - Form of Continuing Disclosure Certificate (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast
E-5
definitive agreement relating to any such actions, other than pursuant to its
terms, if material;
14. appointment of a successor or additional trustee or the change of name of a
trustee, if material;
15. notice of any failure on the part of the Issuer to meet the requirements of
Section 3 hereof;
16. incurrence of a Financial Obligation of the Issuer or Obligated Person, if material,
or agreement to covenants, events of default, remedies, priority rights, or other
similar terms of a Financial Obligation of the Issuer or Obligated Person, any of
which affect security holders, if material; and
17. default, event of acceleration, termination event, modification of terms, or other
similar events under the terms of the Financial Obligation of the Issuer or
Obligated Person, any of which reflect financial difficulties.
(b) The notice required to be given in paragraph 5(a) above shall be filed with any
Repository, in electronic format as prescribed by such Repository.
SECTION 6. IDENTIFYING INFORMATION. In accordance with the Rule, all disclosure filings
submitted pursuant to this Disclosure Certificate to any Repository must be accompanied by identifying
information as prescribed by the Repository. Such information may include, but not be limited to:
(a) the category of information being provided;
(b) the period covered by any annual financial information, financial statement or
other financial information or operation data;
(c) the issues or specific securities to which such documents are related (including
CUSIPs, issuer name, state, issue description/securities name, dated date,
maturity date, and/or coupon rate);
(d) the name of any Obligated Person other than the Issuer;
(e) the name and date of the document being submitted; and
(f) contact information for the submitter.
SECTION 7. TERMINATION OF REPORTING OBLIGATION. The Issuer's obligations under this
Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of
all of the Bonds, so long as there is no remaining liability of the Issuer, or if the Rule is repealed or no
longer in effect. If such termination occurs prior to the final maturity of the Bonds, the Issuer shall give
notice of such termination in the same manner as for a Listed Event under Section 5.
SECTION 8. DISSEMINATION AGENT. The Issuer may, from time to time, appoint or engage a
Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may
discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent.
The Dissemination Agent shall not be responsible in any manner for the content of any notice or report
prepared by the Issuer pursuant to this Disclosure Certificate. The initial Dissemination Agent shall be
Digital Assurance Certification, L.L.C.
9.A.5
Packet Pg. 74 Attachment: EXHIBIT D - Form of Continuing Disclosure Certificate (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast
E-6
SECTION 9. AMENDMENT; WAIVER. Notwithstanding any other provision of this Disclosure
Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this Disclosure
Certificate may be waived, provided that the following conditions are satisfied:
(a) If the amendment or waiver relates to the provisions of Sections 3(a), 4, or 5(a), it
may only be made in connection with a change in circumstances that arises from a change in legal
requirements, change in law, or change in the identity, nature or status of the Issuer, or the type
of business conducted;
(b) The undertaking, as amended or taking into account such waiver, would, in the
opinion of nationally recognized bond counsel, have complied with the requirements of the Rule
at the time of the original issuance of the Bonds, after taking into account any amendments or
interpretations of the Rule, as well as any change in circumstances; and
(c) The amendment or waiver either (i) is approved by the holders or Beneficial
Owners of the Bonds in the same manner as provided in the Resolution for amendments to the
Resolution with the consent of holders or Beneficial Owners, or (ii) does not, in the opinion of
nationally recognized bond counsel, materially impair the interests of the holders or Beneficial
Owners of the Bonds.
Notwithstanding the foregoing, the Issuer shall have the right to adopt amendments to this
Disclosure Certificate necessary to comply with modifications to and interpretations of the provisions of
the Rule as announced by the Securities and Exchange Commission from time to time.
In the event of any amendment or waiver of a provision of this Disclosure Certificate, the I ssuer
shall describe such amendment in the next Annual Report, and shall include, as applicable, a narrative
explanation of the reason for the amendment or waiver and its impact on the type (or in the case of a
change of accounting principles, on the presentation) of financial information or operating data being
presented by the Issuer. In addition, if the amendment relates to the accounting principles to be followed
in preparing financial statements, (i) notice of such change shall be given in the same manner as for a
Listed Event under Section 5, and (ii) the Annual Report for the year in which the change is made should
present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial
statements as prepared on the basis of the new accounting principles and those prepared on the basis of
the former accounting principles.
SECTION 10. ADDITIONAL INFORMATION. Nothing in this Disclosure Certificate shall be
deemed to prevent the Issuer from disseminating any other info rmation, using the means of
dissemination set forth in this Disclosure Certificate or any other means of communication, or including
any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that
which is required by this Disclosure Certificate. If the Issuer chooses to include any information in any
Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required
by this Disclosure Certificate, the Issuer shall have no obligation under this Certificate to update such
information or include it in any future Annual Report or notice of occurrence of a Listed Event.
SECTION 11. DEFAULT. The continuing disclosure obligations of the Issuer set forth herein
constitute a contract with the holders of the Bonds. In the event of a failure of the Issuer to comply with
any provision of this Disclosure Certificate, any holder or Beneficial Owner of the Bonds may take such
actions as may be necessary and appropriate, including seeking mandamus or specific performance by
9.A.5
Packet Pg. 75 Attachment: EXHIBIT D - Form of Continuing Disclosure Certificate (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast
E-7
court order, to cause the Issuer to comply with its obligations under this Disclosure Certificate; provided,
however, the sole remedy under this Disclosure Certificate in the event of any failure of the Issuer to
comply with the provisions of this Disclosure Certificate shall be an action to compel performance. A
default under this Disclosure Certificate shall not be deemed an Event of Default under the Resolution.
SECTION 12. DUTIES, IMMUNITIES AND LIABILITIES OF DIS SEMINATION AGENT.
(a) The Dissemination Agent shall have only such duties as are specifically set forth in this
Disclosure Certificate . The Dissemination Agent’s obligation to deliver the information at the times and
with the contents described herein shall be limited to the extent the Issuer has provided such information
to the Dissemination Agent as required by this Disclosure Certificate. The Dissemination Agent shall
have no duty with respect to the content of any disclosures or notice made pursuant to the terms hereof.
The Dissemination Agent shall have no duty or obligation to review or verify any Information or any
other information, disclosures or notices provided to it by the Issuer and shall not be deemed to be acting
in any fiduciary capacity for the Issuer, the Holders of the Bonds or any other party. The Dissemination
Agent shall have no responsibility for the Issuer’s failure to report to the Dissemination Agent a Notice
Event or a duty to determine the materiality thereof. The Dissemination Agent shall have no duty to
determine, or liability for failing to determine, whether the Issuer has complied with this Disclosure
Certificate. The Dissemination Agent may conclusively rely upon Certifications of the Issuer at all times.
The obligations of the Issuer under this Section shall survive resignation or removal of the
Dissemination Agent and defeasance, redemption or payment of the Bonds.
(b) The Dissemination Agent may, from time to time, consult with legal counsel (either in -
house or external) of its own choosing in the event of any disagreement or controversy, or question or
doubt as to the construction of any of the provisions hereof or its respective duties hereunder, and shall
not incur any liability and shall be fully protected in acting in good faith upon the advice of such legal
counsel. The reasonable fees and expenses of such counsel shall be payable by the Issuer.
(c) All documents, reports, notices, statements, information and other materials provided to
the MSRB under this Agreement shall be provided in an electronic format and accompanied by
identifying information as prescribed by the MSRB.
[Remainder of page intentionally left blank]
9.A.5
Packet Pg. 76 Attachment: EXHIBIT D - Form of Continuing Disclosure Certificate (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast
E-8
SECTION 13. BENEFICIARIES. This Disclosure Certificate shall inure solely to the bene fit of the
Issuer, the Dissemination Agent, the Participating Underwriters and holders and Beneficial Owners from
time to time of the Bonds, and shall create no rights in any other person or entity.
Dated as of ____________, 2019
COLLIER COUNTY WATER-SEWER DISTRICT
By:
Name: W. L. McDaniel, Jr.
Title: Chairman
Approved as to Form and Legal Sufficiency:
By:
Name: Jeffrey A. Klatzkow
Title: County Attorney
ACKNOWLEDGED BY:
DIGITAL ASSURANCE CERTIFICATION L.L.C.,
as Dissemination Agent
By:
Name:
Title:
9.A.5
Packet Pg. 77 Attachment: EXHIBIT D - Form of Continuing Disclosure Certificate (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast
E-9
EXHIBIT A
NOTICE TO REPOSITORY OF FAILURE TO FILE ANNUAL REPORT
Issuer:
Obligated Person:
Name(s) of Bond Issue(s):
Date(s) of Issuance:
Date(s) of Disclosure
Agreement:
CUSIP Number:
NOTICE IS HEREBY GIVEN that the Issuer has not provided an Annual Report with respect to
the above-named Bonds as required by the Continuing Disclosure Certificate between the Issuer and
Digital Assurance Certification, L.L.C., as Dissemination Agent. [The Issuer has notified the
Dissemination Agent that it anticipates that the Annual Report will be filed by______________].
Dated:_____________________________
Digital Assurance Certification, L.L.C., as Dissemination
Agent, on behalf of the Issuer
__________________________________________
cc:
9.A.5
Packet Pg. 78 Attachment: EXHIBIT D - Form of Continuing Disclosure Certificate (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast
E-10
EXHIBIT B
EVENT NOTICE COVER SHEET
This cover sheet and accompanying "event notice" will be sent to the MSRB, pursuant to Securities and
Exchange Commission Rule 15c2-12(b)(5)(i)(C) and (D).
Issuer’s and/or Other Obligated Person’s Name:
____________________________________________________________________________________________
Issuer’s Six-Digit CUSIP Number:
____________________________________________________________________________________________
____________________________________________________________________________________________
or Nine-Digit CUSIP Number(s) of the bonds to which this event notice relates:
____________________________________________________________________________________________
Number of pages attached: _____
____ Description of Notice Events (Check One):
1. "Principal and interest payment delinquencies;"
2. "Non-Payment related defaults, if material;"
3. "Unscheduled draws on debt service reserves reflecting financial difficulties;"
4. "Unscheduled draws on credit enhancements reflecting financial difficulties;"
5. "Substitution of credit or liquidity providers, or their failure to perform;"
6. "Adverse tax opinions, IRS notices or events affecting the tax status of the security;"
7. "Modifications to rights of securities holders, if material;"
8. "Bond calls, if material;"
9. "Defeasances;"
10. "Release, substitution, or sale of property securing repayment of the securities, if material;"
11. "Rating changes;"
12. "Tender offers;"
13. "Bankruptcy, insolvency, receivership or similar event of the obligated person;"
14. "Merger, consolidation, or acquisition of the obligated person, if material;" and
15. "Appointment of a successor or additional trustee, or the change of name of a trustee, if
material."
____ Failure to provide annual financial information as required.
I hereby represent that I am authorized by the issuer or its agent to distribute this information publicly:
Signature:
____________________________________________________________________________________________
Name: ____________________________________ Title: ____________________________________________
Digital Assurance Certification, L.L.C.
315 E. Robinson Street, Suite 300
Orlando, FL 32801
407-515-1100
Date:
9.A.5
Packet Pg. 79 Attachment: EXHIBIT D - Form of Continuing Disclosure Certificate (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast
9.A.6
Packet Pg. 80 Attachment: Legal Ad - Agenda ID 8197 (8197 : Resolution to authorize Water-Sewer Bonds to fund northeast expansion)
EXHIBIT C
FORM OF PRELIMINARY OFFICIAL STATEMENT
25694/008/01436296.DOCv2
PRELIMINARY OFFICIAL STATEMENT DATED ________________, 2019
NEW ISSUE –FULL BOOK ENTRY See "RATINGS" herein
In the opinion of Nabors, Giblin & Nickerson, P.A., Tampa, Florida ("Bond Counsel"), under existing
statutes, regulations, rulings and court decisions and subject to the conditions described herein under "TAX
EXEMPTION," interest on the Series 2019 Bonds is (a) excludable from gross income of the owners thereof for
federal income tax purposes except as otherwise described herein under the caption "T AX EXEMPTION," and (b)
not an item of tax preference for purposes of the federal alternative minimum tax. Such interest also may be subject
to other federal income tax consequences referred to herein under "TAX EXEMPTION." See "TAX
EXEMPTION" herein for a general discussion of Bond Counsel's opinion and other tax considerations.
COLLIER COUNTY WATER-SEWER DISTRICT
(FLORIDA)
$__________*
Water and Sewer Revenue Bonds,
Series 2019
Dated: Date of Delivery Due: ________ 1, as shown on the
inside cover hereof
The Water and Sewer Revenue Bonds, Series 2019 (the "Series 2019 Bonds") are being issued by
the Collier County Water-Sewer District (the "District") as fully registered bonds and initially will be
registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New
York ("DTC"). Individual purchases will be made in book-entry form only in denominations of $5,000 and
integral multiples thereof. Purchasers of the Series 2019 Bonds will not receive physical delivery of
certificates. Transfers of ownership interest in the Series 2019 Bonds will be effected by the DTC book-
entry system as described herein. Interest on the Series 2019 Bonds is payable on July 1, 2019 and
semiannually on each July 1 and January 1 thereafter. Principal of, premium, if any, and interest on the
Series 2019 Bonds will be payable by _______________________, _________________, _______________, as
Paying Agent and Bond Registrar.
_________________________
The Series 2019 Bonds are subject to redemption prior to their stated maturities as described
herein.
_________________________
This cover page contains information for quick reference only and is not a summary of this issue.
Investors must read the entire Official Statement to obtain information essentia l to the making of an
informed investment decision.
_________________________
The Series 2019 Bonds are being issued, together with certain other legally available monies of the
District, to (i) finance the acquisition, construction and equipping of various utility capital improvements
within the northeast area of the County (as more particularly described in “THE 2019 PROJECT” herein);
and (ii) pay certain costs of issuance of the Series 2019 Bonds. The Series 2019 Bonds are being issued as
"Additional Bonds" on a parity with the District's outstanding Water and Sewer Refunding Revenue
Bond, Series 2013, Water and Sewer Refunding Revenue Bond, Series 2015 and Water and Sewer
25694/008/01436296.DOCv2
Refunding Revenue Bonds, Series 2016 (collectively, the "Outstanding Parity Bonds"), all issued by the
District pursuant to the provisions of Resolution No. CWS -85-5 adopted on July 30, 1985, as amended and
restated by Resolution No. CWS-85-13 adopted on December 26, 1985, as amended and supplemented,
particularly as amended by Resolution No. CWS-87-5 adopted on March 3, 1987, Resolution No.
CWS-91-6 adopted on October 22, 1991 and Resolution No. CWS-2006-298 adopted on November 14,
2006, and particularly as supplemented by Resolution No. 2019-___/CWS Resolution No. 2019-___
adopted on March 12, 2019 (collectively, the "Resolution").
_________________________
THE SERIES 2019 BONDS ARE SECURED BY A PLEDGE OF AND LIEN ON, THE
PLEDGED FUNDS (AS DEFINED IN THE RESOLUTION), ON PARITY AND EQUAL STATUS
WITH THE OUTSTANDING PARITY BONDS, IN THE MANNER AND TO THE EXTENT
PROVIDED IN THE RESOLUTION. SEE "SECURITY FOR THE BONDS" HEREIN. THE SERIES
2019 BONDS SHALL NOT BE DEEMED TO CONSTITUTE A GENERAL OBLIGATION OR PLEDGE
OF THE FAITH AND CREDIT OF THE DISTRICT, COLLIER COUNTY, THE STATE OF FLORID A
OR ANY POLITICAL SUBDIVISION OF THE STATE OF FLORIDA FOR THE PAYMENT OF THE
SERIES 2019 BONDS. THE SERIES 2019 BONDS AND THE OBLIGATIONS EVIDENCED
THEREBY DO NOT CONSTITUTE A LIEN UPON ANY PROPERTY OF THE DISTRICT, COLLIER
COUNTY OR THE STATE OF FLORIDA, BUT SHALL CONSTITUTE A LIEN ONLY ON, AND BE
PAYABLE SOLELY FROM, THE PLEDGED FUNDS IN THE MANNER AND TO THE EXTENT
DESCRIBED IN THE RESOLUTION.
_________________________
The Series 2019 Bonds are offered when, as, and if issued by the District and received by the Underwriter,
subject to the opinion on certain legal matters relating to their issuance by Nabors, Giblin & Nickerson, P.A.,
Tampa, Florida, Bond Counsel. Certain legal matters will be passed upon for the District by Jeffrey A. Klatzkow,
Esq., District Attorney and by Bryant Miller Olive P.A., Tampa, Florida, Disclosure Counsel. PFM Financial
Advisors LLC, Coral Gables, Florida is serving as Financial Advisor to the District. It is expected that the Series
2019 Bonds in definitive form will be available for delivery to the Underwriter in New York, New York at the
facilities of DTC on or about ________________, 2019.
Electronic bids for the Series 2019 Bonds will be received through Parity Electronic Bid
Submission System as described in the Official Notice of Sale.
This Official Statement is dated ____________________, 2019.
*Preliminary, subject to change.
25694/008/01436296.DOCv2
COLLIER COUNTY WATER-SEWER DISTRICT
$____________*
Water and Sewer Revenue Bonds,
Series 2019
MATURITIES, AMOUNTS, INTEREST RATES, PRICES, YIELDS AND INITIAL CUSIP NUMBERS
$____________ Serial Bonds
Maturity
(July 1)* Amount*
Interest
Rate Prices Yields
Initial CUSIP
Number**
$ % %
* Preliminary, subject to change.
** The District is not responsible for the use of the CUSIP numbers referenced herein nor is any
representation made by the District as to their correctness. The CUSIP numbers provided herein
are included solely for the convenience of the readers of this Official Statement.
25694/008/01436296.DOCv2
RED HERRING LANGUAGE:
This Preliminary Official Statement and the information contained herein are subject to completion or
amendment. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell
or a solicitation of an offer to buy, nor shall there be any sale of the Series 201 9 Bonds in any jurisdiction
in which such offer, solicitation or sale would be unlawful prior to registration, qualification or
exemption under the securities laws of such jurisdiction. The District has deemed this Preliminary
Official Statement "final," except for certain permitted omissions, within the contemplation of Rule
15c2-12 promulgated by the Securities and Exchange Commission.
25694/008/01436296.DOCv2
COLLIER COUNTY WATER-SEWER DISTRICT
3339 Tamiami Trail East, Suite 302
Naples, Florida 34112
(239) 252-2351
BOARD OF COUNTY COMMISSIONERS
William L. McDaniel, Jr., Chairman
Burt L. Saunders, Vice Chairman
Andy Solis, Commissioner
Donna Fiala, Commissioner
Penny Taylor, Commissioner
CLERK OF THE CIRCUIT COURT AND COMPTROLLER
Crystal K. Kinzel
DIRECTOR OF FINANCE AND ACCOUNTING
Derek M. Johnssen
COUNTY ATTORNEY/ATTORNEY TO THE DISTRICT
Jeffrey A. Klatzkow, Esq.
PUBLIC UTILITIES DEPARTMENT HEAD
G. George Yilmaz, Ph.D.
DIRECTOR OF FINANCIAL OPERATIONS SUPPORT
Joseph G. Bellone
BOND COUNSEL
Nabors, Giblin & Nickerson, P.A.
Tampa, Florida
DISCLOSURE COUNSEL
Bryant Miller Olive P.A.
Tampa, Florida
FINANCIAL ADVISOR
PFM Financial Advisors LLC
Coral Gables, Florida
25694/008/01436296.DOCv2
No dealer, broker, salesman or other person has been authorized by the District or the
Underwriter to give any information or to make any representations in connection with the Series 2019
Bonds, other than as contained in this Official Statement, and, if given or made, such inf ormation or
representations must not be relied upon as having been authorized by the District. This Official
Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any
sale of the Series 2019 Bonds by any person in any jurisdiction in which it is unlawful for such person to
make such offer, solicitation or sale.
The information set forth herein has been obtained from the District, DTC and other sources that
are believed to be reliable, but is not guaranteed as to accuracy or completeness by, and is not to be
construed as a representation by, the Underwriter. The Underwriter listed on the cover page hereof has
reviewed the information in this Official Statement in accordance with and as part of its respons ibilities to
investors under the federal securities laws as applied to the facts and circumstances of this transaction,
but the Underwriter does not guarantee the accuracy or completeness of such information. The
information and expressions of opinion stated herein are subject to change, and neither the delivery of
this Official Statement nor any sale made hereunder shall create, under any circumstances, any
implication that there has been no change in the matters described herein since the date hereof.
IN CONNECTION WITH THIS OFFERING OF THE SERIES 2019 BONDS, THE
UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN
THE MARKET PRICE OF SUCH SERIES 2019 BONDS AT LEVELS ABOVE THAT WHICH MIGHT
OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE
DISCONTINUED AT ANY TIME.
All summaries herein of documents and agreements are qualified in their entirety by reference to
such documents and agreements, and all summaries herein of the Series 2019 Bonds are qualified in their
entirety by reference to the form thereof included in the aforesaid documents and agreements.
NO REGISTRATION STATEMENT RELATING TO THE SERIES 2019 BONDS HAS BEEN FILED
WITH THE SECURITIES AND EXCHANGE COMMISSION (THE "SEC") OR WITH ANY STATE
SECURITIES COMMISSION. IN MAKING ANY INVESTMENT DECISION, INVESTORS MUST RELY
ON THEIR OWN EXAMINATIONS OF THE DISTRICT AND THE TERMS OF THE OFFERING,
INCLUDING THE MERITS AND RISKS INVOLVED. THE SERIES 2019 BONDS HAVE NOT BEEN
APPROVED OR DISAPPROVED BY THE SEC OR ANY STATE SECURITIES COMMISSION OR
REGULATORY AUTHORITY. THE FOREGOING AUTHORITIES HAVE NOT PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE
CONTRARY MAY BE A CRIMINAL OFFENSE.
CERTAIN STATEMENTS INCLUDED OR INCORPORATED BY REFERENCE IN THIS
OFFICIAL STATEMENT CONSTITUTE "FORWARD-LOOKING STATEMENTS." SUCH STATEMENTS
GENERALLY ARE IDENTIFIABLE BY THE TERMINOLOGY USED, SUCH AS "PLAN," "EXPECT,"
"ESTIMATE," "PROJECT," "ANTICIPATE," "BUDGET" OR OTHER SIMILAR WORDS. THE
ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH
FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS,
UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL RESULTS, PERFORMANCE
OR ACHIEVEMENTS DESCRIBED TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS,
PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD -LOOKING
STATEMENTS. THE DISTRICT DOES NOT PLAN TO ISSUE ANY UPDATES OR REVISIONS TO
THOSE FORWARD-LOOKING STATEMENTS IF OR WHEN ITS EXPECTATIONS OR EVENTS,
CONDITIONS OR CIRCUMSTANCES ON WHICH SUCH STATEMENTS ARE BASED OCCUR,
OTHER THAN AS DESCRIBED UNDER "CONTINUING DISCLOSURE" HEREIN.
25694/008/01436296.DOCv2
i
TABLE OF CONTENTS
Contents Page
INTRODUCTION ....................................................................................................................................................... 1
The County and the District .................................................................................................................................. 1
The Series 2019 Bonds ............................................................................................................................................ 2
Purpose of the Series 2019 Bonds .......................................................................................................................... 2
Security for the Bonds ............................................................................................................................................ 2
Reserve Account ...................................................................................................................................................... 2
Redemption Provisions .......................................................................................................................................... 3
Additional Bonds .................................................................................................................................................... 3
Tax Exemption ......................................................................................................................................................... 3
Continuing Disclosure ............................................................................................................................................ 3
Additional Information .......................................................................................................................................... 3
THE 2019 PROJECT ................................................................................................................................................ 3
DESCRIPTION OF THE SERIES 2019 BONDS ....................................................................................................... 4
General ..................................................................................................................................................................... 4
Payment of the Series 2019 Bonds ........................................................................................................................ 4
Exchange, Registration and Transfer ................................................................................................................... 4
Ownership of Series 2019 Bonds ........................................................................................................................... 5
Redemption Provisions .......................................................................................................................................... 5
Book-Entry Only System ........................................................................................................................................ 6
SECURITY FOR THE BONDS .................................................................................................................................. 8
General ..................................................................................................................................................................... 8
Rate Covenant ....................................................................................................................................................... 10
Funds and Accounts ............................................................................................................................................. 10
Construction Fund ................................................................................................................................................ 10
Separate Accounts ................................................................................................................................................. 11
Disposition of Revenues ....................................................................................................................................... 11
System Development Fees Fund ......................................................................................................................... 12
Reserve Account .................................................................................................................................................... 12
Additional Bonds .................................................................................................................................................. 13
Subordinated Indebtedness ................................................................................................................................. 14
No Mortgage or Sale of the System .................................................................................................................... 14
No Free Service ...................................................................................................................................................... 14
No Impairment of Rights ..................................................................................................................................... 15
Compulsory Water and Sewer Connections ..................................................................................................... 15
Enforcement of Charges ....................................................................................................................................... 15
Unit Water and Sewer Bills .................................................................................................................................. 15
Collection of System Development Fees ............................................................................................................ 15
Remedies ................................................................................................................................................................ 16
ESTIMATED SOURCES AND USES OF FUNDS ................................................................................................ 17
DEBT SERVICE SCHEDULE .................................................................................................................................. 18
THE COUNTY .......................................................................................................................................................... 19
General ................................................................................................................................................................... 19
Board of County Commissioners ........................................................................................................................ 19
County Manager ................................................................................................................................................... 19
Budget Process ...................................................................................................................................................... 19
25694/008/01436296.DOCv2
ii
Annual Audit ......................................................................................................................................................... 20
THE DISTRICT .......................................................................................................................................................... 20
Background ............................................................................................................................................................ 20
Powers .................................................................................................................................................................... 20
Management .......................................................................................................................................................... 21
Billings and Collections ........................................................................................................................................ 21
THE SYSTEM ............................................................................................................................................................ 22
General ................................................................................................................................................................... 22
Water System ......................................................................................................................................................... 23
Sewer System ......................................................................................................................................................... 35
Rates, Fees and Charges ....................................................................................................................................... 42
System Development Fees ................................................................................................................................... 47
Capital Improvement Program and Anticipated Funding .............................................................................. 48
Historical Operating Results ............................................................................................................................... 49
RISK FACTORS ......................................................................................................................................................... 51
INVESTMENT POLICY ........................................................................................................................................... 52
LEGAL MATTERS .................................................................................................................................................... 55
LITIGATION ............................................................................................................................................................. 55
DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS ........................................................... 56
TAX EXEMPTION .................................................................................................................................................... 56
Opinion of Bond Counsel .................................................................................................................................... 56
Internal Revenue Code of 1986 ........................................................................................................................... 57
Collateral Tax Consequences ............................................................................................................................... 57
Other Tax Matters ................................................................................................................................................. 57
Original Issue Discount ........................................................................................................................................ 57
Bond Premium....................................................................................................................................................... 58
RATINGS ................................................................................................................................................................... 58
FINANCIAL ADVISOR ........................................................................................................................................... 59
AUDITED FINANCIAL STATEMENTS ............................................................................................................... 59
UNDERWRITING .................................................................................................................................................... 59
CONTINGENT FEES ............................................................................................................................................... 60
ENFORCEABILITY OF REMEDIES ....................................................................................................................... 60
CONTINUING DISCLOSURE ................................................................................................................................ 60
ACCURACY AND COMPLETENESS OF OFFICIAL STATEMENT ................................................................ 61
AUTHORIZATION OF OFFICIAL STATEMENT ............................................................................................... 62
APPENDIX A — General Information Regarding Collier County, Florida
APPENDIX B — Composite Resolution
APPENDIX C — Collier County Comprehensive Annual Financial Report For Fiscal Year Ended
September 30, 2018
APPENDIX D — Form of Bond Counsel Opinion
APPENDIX E — Form of Continuing Disclosure Certificate
25694/008/01436296.DOCv2 1
OFFICIAL STATEMENT
Relating To
COLLIER COUNTY WATER-SEWER DISTRICT
$____________*
Water and Sewer Revenue Bonds,
Series 2019
INTRODUCTION
This introduction is subject in all respects to the more complete information and definitions
contained or incorporated in this Official Statement and should not be considered to be a complete
statement of the facts material to making an informed investment decision. The offering by the Collier
County Water-Sewer District, a body corporate and politic in the State of Florida (the "District") of its
$__________* Water and Sewer Revenue Bonds, Series 2019 (the "Series 2019 Bonds") to potential
investors is made only by means of the entire Official Statement, including all appendices attached
hereto. All capitalized undefined terms used in this introduction shall have the meanings ascribed to
them in "APPENDIX B — Composite Resolution" attached hereto.
The County and the District
Collier County, Florida (the "County") was established in 1923 by the Legislature of the State of
Florida (the "State") from portions of Lee and Monroe Counties. Its territorial limi ts, as they presently
exist, contain approximately 2,026 square miles. In terms of land area, it is the largest county in the State.
The County is located on the southwest coast of the Florida peninsula directly west of the Miami -Fort
Lauderdale area. In 2017 the County had an estimated population of 360,846. Part of the Everglades
National Park, the United States' only subtropical national park, comprises a portion of the County.
Principal industries within the County include wholesale and retail trade , tourism, medical services,
agriculture, forestry, fishing, cattle ranching and construction. Additional general information with
respect to the County is set forth in "APPENDIX A – General Information Regarding Collier County,
Florida" attached hereto.
The District is created pursuant to Chapter 2003 -353, Laws of Florida (the "District Charter")
which amended, re-enacted and codified all prior acts pertaining to the District, for the purpose of
providing water and sewer services and facilities to certain unincorporated areas of the County. The
service area of the District's water and sewer system (as further defined in the Resolution, the "System")
encompasses approximately 240 square miles of unincorporated Collier County. The Board of County
Commissioners of the County (the “Board”) is the ex-officio governing board of the District.
The District previously issued its Water and Sewer Refunding Revenue Bond, Series 2013, Water
and Sewer Refunding Revenue Bond, Series 2015, Water and Sewer Refunding Revenue Bonds, Series
2016 (collectively, the "Outstanding Parity Bonds"). The Outstanding Parity Bonds were, and the Series
2019 Bonds and any Additional Bonds of the District will be issued pursuant to and under the authority
of Resolution No. CWS-85-5 adopted on July 30, 1985, as amended and restated by Resolution No. CWS-
85-13 adopted on December 26, 1985, as amended and supplemented, particularly as amended by
*Preliminary, subject to change.
25694/008/01436296.DOCv2 2
Resolution No. CWS-87-5 adopted on March 3, 1987, Resolution No. CWS -91-6 adopted on October 22,
1991 and Resolution No. CWS-2006-298 adopted on November 14, 2006, and particularly as
supplemented by Resolution No. 2019-__/CWS Resolution No. 2019-__ adopted on March 12, 2019
(collectively, the "Resolution"), the Constitution of the State of Florida, the District Charter, Chapter 153,
Part II, Florida Statutes, and other applicable provisions of law.
The Series 2019 Bonds
The Series 2019 Bonds, when issued, will be dated the date of their delivery, with interest payable
on each July 1 and January 1, commencing on July 1, 2019, and will mature on July 1 in the years and in
the amounts and bear interest at the rates shown on the inside cover page of this Official Statement. The
Series 2019 Bonds are being issued in fully registered form in principal denominations of $5,000 or
integral multiples thereof, and, when issued, will be registered in the name of Cede & Co., as nominee for
The Depository Trust Company, New York, New York ("DTC"). See "DESCRIPTION OF THE Series 2019
BONDS" herein.
Purpose of the Series 2019 Bonds
The Series 2019 Bonds are being issued, together with certain other legally available monies of the
District, to (i) finance the acquisition, construction and equipping of various utility capital improvements
within the northeast area of the County (as more particularly described in “THE 2019 PROJECT” below),
and (ii) pay certain costs of issuance of the Series 2019 Bonds. See "PLAN OF FINANCING" herein.
Security for the Bonds
When issued, the Series 2019 Bonds will be issued as Additional Bonds on a parity with the
Outstanding Parity Bonds in the manner and to the extent provided in the Resolution . The Series 2019
Bonds, the Outstanding Parity Bonds, and any Additional Bonds hereafter issued pursuant to the
Resolution are referred to herein as the "Bonds." The principal of, premium, if any, and interest on the
Bonds shall be secured by a pledge of and lien upon (i) the Net Revenues to be derived from the
operation of the System, (ii) System Development Fees, (iii) the proceeds from any an d all assessments
against property benefited by the System or any part thereof ("Special Assessments"), provided that
Special Assessments shall be subject to the provisions and lien and pledge of the Resolution only if and to
the extent provision for inclusion as a part of the Pledged Funds has been made by a supplemental
resolution to be adopted by the District ("Special Assessment Proceeds"), and (iv) until applied in
accordance with the provisions of the Resolution, all moneys, including investments ther eof, in the funds
and accounts established under the Resolution, except for the Revenue Fund and the Operation and
Maintenance Fund (collectively, "Pledged Funds"). At the present time, the District has not designated
any Special Assessments to be a part of Pledged Funds relating to the Bonds. See "SECURITY FOR
THE BONDS" herein.
Reserve Account
Following the issuance of the Series 2019 Bonds the Reserve Account will be fully funded in an
amount equal to the Reserve Account Requirement for the Series 2019 Bonds and the Outstanding Parity
Bonds. See "SECURITY FOR THE BONDS – Reserve Account" herein.
25694/008/01436296.DOCv2 3
Redemption Provisions
The Series 2019 Bonds are subject to redemption prior to their stated maturities as described
herein. See "DESCRIPTION OF THE Series 2019 BONDS – Redemption Provisions" herein.
Additional Bonds
In the future, the District may issue Additional Bonds on a parity with the Series 2019 Bonds and
the Outstanding Parity Bonds. Such Additional Bonds may be issued only if the District first compli es
with certain conditions set forth in the Resolution. See "SECURITY FOR THE BONDS – Additional
Bonds" herein.
Tax Exemption
In the opinion of Bond Counsel, under existing statutes, regulations, rulings and court decisions,
and assuming compliance with certain tax covenants described herein, interest on the Series 2019 Bonds
is excludable from gross income for federal income tax purposes, and is not an item of tax preference for
purposes of the federal alternative minimum tax imposed on individuals and cor porations. Such interest,
however, will be includable in the calculation of certain corporations' alternative minimum taxable
income and may be subject to other federal income tax consequences. See "TAX EXEMPTION" herein for
a general discussion of Bond Counsel’s opinion and other tax considerations.
Continuing Disclosure
The District has covenanted for the benefit of Series 2019 Bondholders to provide certain financial
information and operating data relating to the District and the Series 2019 Bonds in each year, and to
provide notices of the occurrence of certain enumerated material events, in accordance with Rule 15c2 -12
of the Securities and Exchange Commission (the "SEC"). See "CONTINUING DISCLOSURE" herein.
Additional Information
This Official Statement speaks only as of its date and the information contained herein is subject
to change. This Official Statement contains certain information concerning DTC and its book -entry
system. Such information has not been provided by the District and the Distri ct does not certify as to the
accuracy or sufficiency of the disclosure practices or content of information provided by such party and is
not responsible for the information provided by such party.
A copy of the Resolution and all documents of the District referred to herein may be obtained
from Dwight E. Brock, Clerk of the Circuit Court and Comptroller of Collier County and Clerk to the
District, 3299 Tamiami Trail East, Suite 401, Board Minutes and Records Department, Naples, Florida
34112, phone (239) 252-7240.
THE 2019 PROJECT
The 2019 Project consists of the acquisition, construction and equipping of various capital
improvements within the northeast area of the County including, but not limited to,
____________________ (the "2019 Project").
25694/008/01436296.DOCv2 4
DESCRIPTION OF THE SERIES 2019 BONDS
General
The Series 2019 Bonds are being issued in fully registered form and will be registered initially in
the name of Cede & Co., as the nominee of DTC. Individual purchases of interests in the Series 2019
Bonds will be made in book-entry form only. Purchasers of the Series 2019 Bonds offered hereby
("Beneficial Owners") will not receive physical delivery of certificates. Transfers of ownership interests in
the Series 2019 Bonds will be effected through a book-entry system as described below. See
"DESCRIPTION OF THE SERIES 2019 BONDS – Book-Entry Only System" herein.
The Series 2019 Bonds will be dated the date of their delivery, and will mature on July 1 in the
years and in the amounts and bear interest at the rates shown on the inside cover page of this Official
Statement. The Series 2019 Bonds are issuable in principal denominations of $5,000 or integral multiples
thereof. Interest on the Series 2019 Bonds is payable on each July 1 and January 1, commencing on July 1,
2019.
Payment of the Series 2019 Bonds
The principal of the Series 2019 Bonds is payable when due upon presentation and surrender
thereof only to the registered owner or his legal representative at the designated corporate trust office of
U.S. Bank National Association, Fort Lauderdale, Florida, as paying agent (the "Paying Agent") for the
Series 2019 Bonds. Interest on the Series 2019 Bonds will be paid by the Paying Agent on each interest
payment date to the registered owner thereof shown on the registration books of the District maintained
by U.S. Bank National Association, Fort Lauderdale, Florida, as bond registrar (the "Bond Registrar") on
the 15th day (whether or not a business day) of the calendar month next preceding the interest payment
date, by check or draft mailed to such registered owner at his address as it appears on such registration
books; provided, however, that at the request of a Series 2019 Bondholder, interest shall be paid by bank
wire transfer for the account of such Series 2019 Bondholder.
For so long as the Series 2019 Bonds shall be held in the DTC book-entry system (without
certificates), all such payments of principal, premium, if any, and interest on the Series 2019 Bonds will be
made to Cede & Co., as registered owner thereof, by the Paying Agent and payments to Beneficial
Owners will be the responsibility of DTC and the DTC Participants.
Exchange, Registration and Transfer
See "DESCRIPTION OF THE SERIES 2019 BONDS – Book-Entry Only System" herein. In the
event that the book-entry only system is discontinued, the following provisions would thereafter apply.
The Series 2019 Bonds may be exchanged for a like aggregate principal amount of the Series 2019 Bonds
or other authorized denominations of the same series, interest rate, and ma turity. The Series 2019 Bonds
may be transferred only upon an assignment duly executed by the registered owner or the owner's
attorney or legal representative in such form as may be satisfactory to the Bond Registrar, such transfer to
be made on the registration books of the District kept by the Bond Registrar. Any registered owner
requesting such registration, transfer, or exchange of a Series 2019 Bond may be required to pay for any
taxes, fees, expenses, or other governmental charges required to be paid with respect thereto. The District
and the Bond Registrar are not required to issue and transfer any Series 2019 Bond during the period
beginning on the 15th day of the month next preceding any interest payment date or, in the case of a
25694/008/01436296.DOCv2 5
proposed redemption of any Series 2019 Bond, during the 15 days next preceding the mailing of notice of
such redemption and continuing until such redemption date.
Ownership of Series 2019 Bonds
The District, the Paying Agent, and the Bond Registrar shall deem and treat the person in whose
name any Series 2019 Bond is registered on the books maintained by the Bond Registrar as the absolute
owner of such Series 2019 Bond, whether or not such Series 2019 Bond is overdue, for the purpose of
receiving payment thereof and for all other purposes whatsoever, and neither the District, the Paying
Agent, nor the Bond Registrar will be affected by any notice to the contrary. All such payments will be
valid and effectual to satisfy and discharge the liability upon such Series 2019 Bond to the extent of the
sum or sums so paid.
Redemption Provisions
Optional Redemption
The Series 2019 Bonds are subject to redemption in whole or in part, at any time, on or after
July 1, 20__, in such order of maturities as may be determined by the District (less than all of a single
maturity to be selected by lot), at a Redemption Price equal to 100% of the principal amount of the Series
2019 Bonds to be redeemed plus accrued interest to the date fixed for redemption, without premium.
Mandatory Redemption
The Series 2019 Bonds maturing on July 1 in the year _____, are subject to mandatory sinking
fund redemption by operation of the Term Bonds Redemption Account in the Sinking Fund, prior to
maturity in part, by lot, at a redemption price equal to the principal amount thereof to be redeemed, plus
interest accrued thereon to the date of redemption, on July 1 in the following years and in the following
Sinking Fund Installments:
Date
Amortization
Requirement
$
*
*Maturity
Notice of Redemption
Notice of redemption of the Series 2019 Bonds shall be mailed first class, postage prepaid, by the
Bond Registrar not less than thirty (30) days before the date fixed for redemption to the registered owners
of any Series 2019 Bonds or portions of Series 2019 Bonds that are to be redeemed, at their addresses as
they appear on the registration books kept by the Bond Registrar. Failure to mail notice, or any defect
therein, to the registered owner of any Series 2019 Bonds which are to be redeemed shall not affect the
validity of the proceedings for the redemption of Series 2019 Bonds. At the redemption date, interest shall
cease to accrue on any of the Series 2019 Bonds duly called for redemption if payment of the redemption
price has been duly made or provided for with l egally available funds. Owners of such Series 2019 Bonds
shall thereafter look solely to such funds for payment.
25694/008/01436296.DOCv2 6
As described under "DESCRIPTION OF THE SERIES 2019 BONDS – Book-Entry Only System"
herein, for so long as the Series 2019 Bonds are registered in the name of DTC, Cede & Co., or any other
nominee of DTC, notice of redemption of any Series 2019 Bond will be given by the Bond Registrar only
to Cede & Co. or such other nominee as registered owner thereof, who will then be solely responsible for
selecting and notifying those DTC Participants who will in turn notify Beneficial Owners to be affected by
such redemption.
Book-Entry Only System
THE FOLLOWING INFORMATION CONCERNING DTC AND DTC'S BOOK-ENTRY ONLY
SYSTEM HAS BEEN OBTAINED FROM SOURCES THAT THE DISTRICT BELIEVES TO BE RELIABLE,
AND THE DISTRICT TAKES NO RESPONSIBILITY FOR THE ACCURACY THEREOF.
SO LONG AS CEDE & CO. IS THE REGISTERED OWNER OF THE SERIES 2019 BONDS, AS
NOMINEE OF DTC, CERTAIN REFERENCES IN THIS OFFICIAL STATEMENT TO THE SERIES 2019
BONDHOLDERS OR REGISTERED OWNERS OF THE SERIES 2019 BONDS SHALL MEAN CEDE &
CO. AND WILL NOT MEAN THE BENEFICIAL OWNERS OF THE SERIES 2019 BONDS. THE
DESCRIPTION WHICH FOLLOWS OF THE PROCEDURES AND RECORD KEEPING WITH RESPECT
TO BENEFICIAL OWNERSHIP INTERESTS IN THE SERIES 2019 BONDS, PAYMENT OF INTEREST
AND PRINCIPAL ON THE SERIES 2019 BONDS TO DIRECT PARTICIPANTS (AS HEREINAFTER
DEFINED) OR BENEFICIAL OWNERS OF THE SERIES 2019 BONDS, CONFIRMATION AND
TRANSFER OF BENEFICIAL OWNERSHIP INTERESTS IN THE SERIES 2019 BONDS, AND OTHER
RELATED TRANSACTIONS BY AND BETWEEN DTC, THE DIRECT PARTICIPANTS AND
BENEFICIAL OWNERS OF THE SERIES 2019 BONDS IS BASED SOLELY ON INFORMATION
FURNISHED BY DTC. ACCORDINGLY, THE DISTRICT NEITHER MAKES NOR CAN MAKE ANY
REPRESENTATIONS CONCERNING THESE MATTERS.
DTC will act as securities depository for the Series 2019 Bonds. The Series 2019 Bonds will be
issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or
such other name as may be requested by an authorized representative of DTC. One fully-registered
Series 2019 Bond certificate will be issued for each maturity of the Series 2019 Bonds as set forth in the
inside cover of this Official Statement, each in the aggregate principal amount of such maturity, and will
be deposited with DTC.
DTC, the world's largest securities depository, is a limited-purpose trust company organized
under the New York Banking Law, a "banking organization" within the meaning of the New York
Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of
the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions
of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over
3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money
market instruments from over 100 countries that DTC's participants ("Direct Participants") deposit with
DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other
securities transactions in deposited securities, through electronic computerized book-entry transfers and
pledges between Direct Participants' accounts. This eliminates the need for physical movement of
securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers,
banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly -owned
subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for
DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are
25694/008/01436296.DOCv2 7
registered clearing agencies. DTCC is owned by the users of its re gulated subsidiaries. Access to the
DTC system is also available to others such as both U.S. and non -U.S. securities brokers and dealers,
banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship
with a Direct Participant, either directly or indirectly ("Indirect Participants"). The Direct Participants and
the Indirect Participants are collectively referred to herein as the "DTC Participants." DTC has a n S&P
Global Ratings ("S&P") rating of AA+. The DTC Rul es applicable to its DTC Participants are on file with
the SEC. More information about DTC can be found at www.dtcc.com.
Purchases of Series 2019 Bonds under the DTC system must be made by or through Direct
Participants, which will receive a credit for the Series 2019 Bonds on DTC's records. The ownership
interest of each actual purchaser of each Series 2019 Bond ("Beneficial Owner") is in turn to be recorded
on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation
from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations
providing details of the transaction, as well as periodic statements of their holdings, from the Direct or
Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of
ownership interests in the Series 2019 Bonds are to be accomplished by entries made on the books of
Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive
certificates representing their ownership interests in the Series 2019 Bonds, except in the event that use of
the book-entry system for the Series 2019 Bonds is discontinued.
To facilitate subsequent transfers, all Series 2019 Bonds deposited by Direct Participants with
DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be
requested by an authorized representative of DTC. The deposit of the Series 2019 Bonds with DTC and
their registration in the name of Cede & Co. or such other DTC nominee do not affect any change in
beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Series 2019 Bonds;
DTC's records reflect only the identity of the Direct Participants to whose accounts such Series 2019
Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants
will remain responsible for keeping account of their holdings on behalf of their customer s.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial
Owners will be governed by arrangements among them, subject to any statutory or regulatory
requirements as may be in effect from time to time. Beneficial Owners of Series 2019 Bonds may wish to
take certain steps to augment the transmission to them of notices of significant events with respect to the
Series 2019 Bonds, such as redemptions, tenders, defaults, and proposed amendments to the security
documents. For example, Beneficial Owners of Series 2019 Bonds may wish to ascertain that the nominee
holding the Series 2019 Bonds for their benefit has agreed to obtain and transmit notices to Beneficial
Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the
Registrar and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Series 2019 Bonds within a
maturity are being redeemed, DTC's practice is to determine by lot the amount of the interest of each
Direct Participant in such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to
the Series 2019 Bonds unless authorized by a Direct Participant in accordance with DTC's MMI
Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the District as soon as possible
after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those
25694/008/01436296.DOCv2 8
Direct Participants to whose accounts Series 2019 Bonds are credited on the record date (identified in a
listing attached to the Omnibus Proxy).
Redemption proceeds, distributions, and dividend payments on the Series 2019 Bonds will be
made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC.
DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding
detail information from the District or the Paying Agent, on the payment date in accordance with their
respective holdings shown on DTC's records. Payments by DTC Participants to Beneficial Owners will be
governed by standing instructions and customary practices, as is the case with securities held for the
accounts of customers in bearer form or registered in "street name," and will be the responsibility of such
DTC Participant and not of DTC, the Paying Agent, or the District, subject to any statutory or regulatory
requirements as may be in effect from time to time. Payment of redemption proceeds, distributions and
dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized
representative of DTC) is the responsibility of the District and/or the Paying Agent, disbursement of such
payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to
the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to the Series 2019 Bonds
at any time by giving reasonable notice to the District or Paying Agent. Under such circumstances, in the
event that a successor depository is not obtained , the Series 2019 Bond certificates are required to be
printed and delivered.
The District may decide to discontinue use of the system of book-entry-only transfers through
DTC (or a successor securities depository). In that event, Series 2019 Bond certificates will be printed and
delivered to DTC.
SECURITY FOR THE BONDS
General
The principal of, premium, if any, and interest on the Bonds shall be secured ratably by a pledge
of the lien upon (i) the Net Revenues (Gross Revenues less Operating Expenses) to b e derived from the
operation of the System ("Net Revenues"), (ii) the System Development Fees, (iii) the proceeds from any
and all assessments against property benefited by the System or any part thereof ("Special Assessments"),
provided that Special Assessments shall be subject to the provisions and lien and pledge of the Resolution
only if and to the extent provision for inclusion as part of the Pledged Funds has been made by a
supplemental resolution to be adopted by the District ("Special Assessment Pro ceeds"), and (iv) until
applied in accordance with the provisions of the Resolution, all moneys, including investments thereof, in
the funds and accounts established under the Resolution, except for the Revenue Fund and the Operation
and Maintenance Fund (collectively, "Pledged Funds"). At the present time, the District has not
designated any Special Assessments to be a part of the Pledged Funds relating to the Bonds.
The "Gross Revenues" of the System means all income and moneys received by the District from
the rates, fees, rentals, charges and other income to be made and collected by the District for the use of the
products, services and facilities to be provided by the System, or otherwise received by the District or
accruing to the District in the management and operation of the System, calculated in accordance with
generally accepted accounting methods employed in the operation of public utility systems similar to the
System, including, without limiting the generality of the foregoing, Connection Fees, AFPI and all
earnings and income derived from the investment of moneys under the provisions of the Resolution
25694/008/01436296.DOCv2 9
which are transferred to the Revenue Fund or Interest Account. Gross Revenues shall not include (1) any
Government Grants, (2) System Development Fees, and (3) Special Assessments. "AFPI" means
Allowance for Funds Prudently Invested fees, to the extent lawfully levied by the District. AFPI fees are
designed to recover the costs associated with financing the capital expenditures associated with
providing capacity to new growth. AFPI are not System Development Fees and are intended to
reimburse the System for the costs that are incurred for the financing of unused System capacity prior to
new growth connecting to the System. As such, they are considered a component of Gross Revenues of
the System since the fees are a reimbursement of previously incurred expenses (not capitalized). All
AFPI fees collected will be treated as other Gross Revenues of the System and can be used to fund any
System expenditure. AFPI were derived from respective rate resolutions which expired on
December 31, 2012 and, therefore, AFPI are no longer collected. However, the District reserves the
right to collect AFPI in the future.
"Operating Expenses" means the District's expenses for operation, maintenance, repairs and
replacements with respect to the System and shall include, without limiting the generality of the
foregoing, administration expenses, insurance and surety bond premiums, legal and engineering
expenses, ordinary and current rentals of equipment or other property, refunds of moneys lawfully due
to others, payments to others for disposal of sewage or other wastes, payments to pension, retirement,
health and hospitalization funds, and any other expenses required to be paid for or with respect to proper
operation or maintenance of the System, all to the extent properly attributable to the System in
accordance with generally accepted accounting principles employed in the operation of public utility
systems similar to the System, and disbursements for the expenses, liabilities and compensation of any
Paying Agent or Registrar under the Resolution, but does not include any costs or expenses in respect of
original construction or improvement other than expenditures necessary to prevent an interruption or
continuance of an interruption of Gross Revenues or minor capital expenditures necessary for the proper
and economical operation or maintenance of the System, or any provision for interest, depreciation,
amortization or similar charges.
"System Development Fees" shall mean certain charges imposed by the District on Persons (as
defined in the Resolution), including developers and large users, connecting to the System or reserving
capacity in the System, which represent a pro rata share of the costs of the System which are attributable
to the increased demand such additional connections create upon the System; provided, however, that
(A) such charges shall be net of any refunds to said Persons in accordance with applicable developer or
use agreements, and (B) shall not include Connection Fees.
Generally, under Florida law, impact fees such as the System Development Fees may be validly
imposed against new construction or development in order to fund capital improvements or capacity
which are necessitated by such new construction or development or to satisfy debt service for the bonds
or other obligations issued for such purposes. Proceeds of such System Development Fees may generally
be used only for the capital improvements or capacity attributable to the new construction or
development or to pay debt service on indebtedness incurred to finance or refinance such capital
improvements or capacity.
IMPACT FEE REVENUES SUCH AS THE SYSTEM DEVELOPMENT FEES FLUCTUATE
WITH THE AMOUNT OF NEW CONSTRUCTION OR DEVELOPMENT WHICH OCCURS WITHIN
THE DISTRICT. THEREFORE, THERE CAN BE NO ASSURANCES THAT SUCH REVENUE WILL
NOT DECREASE OR BE ELIMINATED ALTOGETHER IN THE EVENT THAT NEW
25694/008/01436296.DOCv2 10
CONSTRUCTION, FOR WHATEVER REASON, MIGHT DECREASE OR CEASE ALTOGETHER
WITHIN THE DISTRICT.
THE BONDS SHALL NOT BE DEEMED TO CONSTITUTE A GENERAL OBLIGATION OR
PLEDGE OF THE FAITH AND CREDIT OF THE DISTRICT, COLLIER COUNTY, THE STATE OF
FLORIDA OR ANY POLITICAL SUBDIVISION OF THE STATE OF FLORIDA FOR THE PAYMENT
OF THE BONDS. THE BONDS AND THE OBLIGATIONS EVIDENCED THEREBY DO NOT
CONSTITUTE A LIEN UPON ANY PROPERTY OF THE DISTRICT, COLLIER COUNTY OR THE
STATE OF FLORIDA, BUT SHALL CONSTITUTE A LIEN ONLY ON, AND PAYABLE SOLELY
FROM, THE PLEDGED FUNDS.
Rate Covenant
The District covenants that in each Fiscal Year, it will fix, establish, and maintain such rates and
collect such fees, rates, or other charges for the products, services and facilities of the System, and revise
the same from time to time, whenever necessary, as will always provide in each Fiscal Year, (A) Net
Revenues, System Development Fees and Special Assessment Proceeds adequate at all times to pay in
each Fiscal Year at least one hundred twenty five percent (125%) of the Annual Debt Service on all
Outstanding Bonds becoming due in such Fiscal Year, and (B) Net Revenues in each Fiscal Year adequate
to pay at least one hundred percent (100%) of the Annual Debt Service on all Outstanding Bonds and any
required deposits to the Reserve Account becoming due in such Fiscal Year. Such rates, fees, or other
charges shall not be so reduced so as to be insufficient to provide adequate Net Revenues, System
Development Fees and Special Assessment Proceeds for the purposes provided therefor by the
Resolution.
Funds and Accounts
The District covenanted and agreed in the Resolution to establish with a bank, trust company or
such other entity in the State, which is eligible under the laws of the State to be a depository for county
funds the following funds and accounts: the "Revenue Fund," the "Operation and Maintenance Fund,"
the "Sinking Fund" (in which the District shall maintain four separate accounts being the "Interest
Account," the "Principal Account," the "Term Bonds Redemption Account" and the "Reserve Account"),
the "System Development Fees Funds," the "Special Assessments Fund," the "Renewal and Replacement
Fund," and the "System Surplus Fund".
Moneys in the aforementioned funds and accounts, until applied in accordance with the
provisions of the Resolution, shall be subject to a lien and charge in favor of the Holders of the Bonds and
for the further security of such Holders.
Construction Fund
The County has covenanted and agreed in the Resolution to establish the “2019 Project Account”
in the Construction Fund which shall be used only for payment of the Cost of a Project. Moneys in the
2019 Project Account, until applied in payment of any item of the Cost of the Project (such as the 2019
Project) 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 favor of the Holders of the Series 2019 Bonds and for the further security of
such Holders.
25694/008/01436296.DOCv2 11
Separate Accounts
The moneys required to be accounted for in each of the funds, accounts and subaccount s
established in the Resolution may be deposited in a single, non-exclusive bank account, and funds
allocated to the various funds, accounts and subaccounts established in the Resolution may be invested in
a common investment pool, provided that adequate accounting records are maintained to reflect and
control the restricted allocation of the moneys on deposit therein and such investments for the various
purposes of such funds, accounts and subaccounts as provided in the Resolution.
The designation and establishment of the various funds, accounts and subaccounts in and by the
Resolution shall not be construed to require the establishment of any completely independent, self -
balancing funds as such term is commonly defined and used in governmental accounting, but rather is
intended solely to constitute an earmarking of certain revenues for certain purposes and to establish
certain priorities for application of such revenues as provided in the Resolution.
Disposition of Revenues
A. The District has covenanted to deposit all Gross Revenues into the Revenue Fund and all
Special Assessment Proceeds into the Special Assessments Fund. Moneys in the Revenue Fund shall first
be used each month to deposit in the Operation and Maintenance Fund such sums as are necessary to pay
Operating Expenses for the ensuing month.
B. AFPI, if any, shall be deposited, as received, in a separate account of the Revenue Fund
maintained by the District. Any AFPI shall be utilized by the District for lawful purposes related to the
System including, but not limited to, acquisition and construction of improvements and additions to the
System which provide capacity to new users and payment of debt service on obligations related thereto.
C. All moneys at any time on deposit in the Special Assessments Fu nd and any deposits
remaining in the Revenue Fund after the aforementioned transferals to the Operation and Maintenance
Fund shall be disposed of by the District, on or before the 25th day of each month, first from the Special
Assessments Fund and then fro m the Revenue Fund as follows: first to the Interest Account, a sum
which, together with the balance therein, shall be equal to the interest accruing on all Bonds for said
month; second, to the Principal Account, a sum which, together with the balance ther ein, shall be sum
equal to the principal accruing on all Bonds in said month; third, commencing in the month which is one
year prior to the first Sinking Fund Installment, to the Term Bonds Redemption Account a sum which,
together with the balance therein, shall be equal to the Sinking Fund Installment accruing on all Bonds in
said month; fourth, to the Reserve Account such sum, if any, as will be necessary to, within 24 months,
restore the funds on deposit therein to an amount equal to the Reserve Account Requirement; fifth, to the
Renewal and Replacement Fund such sums as shall be sufficient to pay one -twelfth (1/12) of five percent
(5%) of the Gross Revenues derived from the System during the preceding Fiscal Year (or such other
required amount as certified to by the Consulting Engineers) until the amount accumulated in such Fund
is equal to the Renewal and Replacement Fund Requirement; sixth, such sums as may be necessary for
the payment of any accrued debt service on Subordinated Indebtedness in accordan ce with the
proceedings authorizing such Subordinated Indebtedness; seventh, to the Interest Account, the Principal
Account and the Term Bonds Redemption Account, in that order, sufficient moneys such that the
amounts on deposit therein shall equal, respectively, the interest, principal and Sinking Fund Installment
next coming due on the Bonds Outstanding, except that no deposit need be made to the Principal
Account or Term Bonds Redemption Account until a date one year preceding the due date of such
25694/008/01436296.DOCv2 12
principal amount or Sinking Fund Installment; and eighth, the balance of any Gross Revenues remaining
in said Revenue Fund shall be deposited in the Surplus Fund and applied to the payment, on or prior to
each principal and interest payment date for the Bonds, i nto the Interest Account, the Principal Account
and the Term Bonds Redemption Account when the moneys therein shall be insufficient to pay the
principal of and interest on the Bonds coming due. Moneys not required to meet such a deficiency may be
applied for any lawful purpose in connection with the System.
D. Income received from the investment and reinvestment of moneys on deposit in the
Surplus Fund, the Renewal and Replacement Fund (to the extent such income and other amounts on
deposit therein exceed the Renewal and Replacement Fund Requirement), and the Reserve Account (to
the extent such income and other amounts on deposit therein exceed the Reserve Account Requirement)
shall be transferred to the Revenue Fund. Any and all income received from the investment of moneys in
the Special Assessments Fund shall be deposited upon receipt thereof into the Interest Account; provided,
however, the District may accumulate investment earnings in the special account established pursuant to
the Resolution. Any and all income received from the investment of moneys in the Revenue Fund, the
Principal Account, the Interest Account, the Term Bonds Redemption Account, the Reserve Account (to
the extent such income and the other amounts in such Account do not exceed the Rese rve Account
Requirement), the Renewal and Replacement Fund (to the extent such income and the other amounts in
such Fund do not exceed the Renewal and Replacement Fund Requirement), the System Development
Fees Fund and in such separate account of the Construction Fund shall be retained in such respective
Fund or Account.
See "APPENDIX B — Composite Resolution" attached hereto for a more complete description of
the provisions of the Resolution providing for the disposition of Gross Revenues.
System Development Fees Fund
The District shall deposit into the System Development Fees Fund all System Development Fees
as received and such System Development Fees shall be accumulated in the System Development Fees
Fund and applied by the District in the following man ner and order of priority:
A. For the payment on or prior to each principal and interest payment date (in no event
earlier than the twenty-fifth (25th) day of the month next preceding such payment date) into the Interest
Account, the Principal Account and the Term Bonds Redemption Account, when the moneys therein are
insufficient to pay the principal of and interest on the Bonds coming due, as further provided in the
Resolution.
B. To pay the cost of acquiring and/or constructing extensions, improvements or addit ions
to the System in accordance with the plans and specifications provided by the Consulting Engineers and
the requisitions for disbursement of moneys provided by the District.
C. To be used for any other lawful purpose relating to the System.
Reserve Account
The Resolution provides for the establishment and maintenance of a Reserve Account in the
Sinking Fund to secure all Outstanding Bonds. There shall be on deposit in the Reserve Account, an
amount sufficient to cause the amount on deposit in the Reserve Account to equal a sum equal to the
lesser of (1) the Maximum Annual Debt Service on all Outstanding Bonds, or (2) 125% of the average
25694/008/01436296.DOCv2 13
annual debt service for all Outstanding Bonds (the "Reserve Account Requirement"). Upon the issuance
of the Series 2019 Bonds, the amount on deposit in the Reserve Account will equal the Reserve Account
Requirement of [$7,315,050.51]. In the event of a deficiency in the Reserve Account, such deficiency shall
be made up from the first available Pledged Revenues after the pa yments required to be made to the
Interest, Principal and Term Bonds Redemption Accounts; provided such deficiency must be made up
within twenty four (24) months.
Notwithstanding the foregoing, in lieu of the required deposits into the Reserve Account, the
District may cause to be deposited into the Reserve Account a surety bond or an insurance policy meeting
the requirements of the Resolution in an amount equal to the difference between the Reserve Account
Requirement and the sums then on deposit in t he Reserve Account, if any. See "APPENDIX B –
Composite Resolution" attached hereto.
Additional Bonds
The District may, from time to time, issue Additional Bonds under the Resolution on a parity
with the Series 2019 Bonds and the Outstanding Parity Bonds, subject to certain conditions set forth in the
Resolution. Additional Bonds shall only be issued by the District for financing the Cost of completion of a
Project, financing the cost of an Additional Project, or the completion the reof, or refunding any and all
Outstanding Bonds or any Subordinated Indebtedness of the District.
No Additional Bonds shall be issued unless:
(1) Except in the case of Additional Bonds issue d for the purpose of refunding Outstanding
Bonds, the District shall certify that it is current in all deposits into the various funds and accounts
established by the Resolution and all payments theretofore required to have been deposited or made by it
under the provisions of the Resolution and that the District has complied with the covenants and
agreements of the Resolution.
(2) An independent certified public accountant shall certify to the District that the amount of
the Net Revenues received during the immediate preceding Fiscal Year or any twelve (12) consecutive
months selected by the District of the twenty-four (24) months immediately preceding the issuance of
said Additional Bonds, adjusted as provided in the Resolution, will (a) be equal to at least one hundred
percent (100%) of the Maximum Annual Debt Service of the Outstanding Bonds and the Additional
Bonds then proposed to be issued, and (b) when added to the Special Assessment Proceeds and the
System Development Fees, adjusted as hereinafter provided, received by the District during such 12 -
month period, be equal to at least one hundred twenty -five percent (125%) of the Maxi mum Annual Debt
Service of the Outstanding Bonds and the Additional Bonds then proposed to be issued.
The Net Revenues, the System Development Fees and the Special Assessment Proceeds
calculated pursuant to the foregoing paragraphs may be adjusted by the independent certified public
accountants upon the written advice of the Consulting Engineers, at the option of the District, as more
fully set forth in the Resolution. See "APPENDIX B – Composite Resolution" attached hereto.
In the event any Additional Bonds are issued for the purpo se of refunding any Bonds then
Outstanding, the conditions of paragraph (2) above shall not apply, provided that the issuance of such
Additional Bonds shall not result in an increase in the aggregate amount of principal of and interest on
the Outstanding Bonds becoming due in the then current Bond Year and all subsequent Bond Years. The
25694/008/01436296.DOCv2 14
conditions of said paragraph (2) shall apply to Additional Bonds issued to refund Subordinated
Indebtedness.
Subordinated Indebtedness
The District may, at any time or from time to time, issue evidences of indebtedness payable in
whole or in part out of Pledged Funds and which may be secured by a pledge of Pledged Funds
subordinated in all respects to the pledge of the Pledged Funds created by the Resolution.
The District has also pledged and created a lien upon certain revenues of the System for the
benefit of the Florida Department of Environmental Protection ("FDEP") in connection with twelve loans
to the District under the State Revolving Fund loan program (the "SRF Loans"). Such pledge and lien are
junior and subordinate in all respects to the pledge and lien on Pledged Funds in favor of the holders of
the Bonds. The SRF Loans each have a fixed rate of interest. As of September 30, 2018, $____________
was the estimated outstanding principal under the SRF Loans. The projected amount for annual debt
service payments on the SRF Loans in the fiscal year ending September 30, 2019 is $___________.
In the event of a default under the SRF Loans, FDEP has the ability to enforce certain remedies
under the SRF Loans, including, but not limited to, acceleration of the repayment schedule, increasing the
interest rate on the SRF Loans by as much as 3.33 times the stated interes t rate and the appointment of a
receiver.
While any such acceleration might adversely affect the District's ability to meet its financial
requirements as disclosed herein, the loan agreements of the District authorizing the SRF Loans contain
separate rate covenants to help ensure the availability of revenues for the payment of such obligations.
The SRF Loans require that the District shall impose rates for the services of the District which will
produce revenues pledged to the SRF Loans in an amount not le ss than 115% of debt service on all
bonded indebtedness of the District and not less than 125% of the annual payments under the loan
agreements which apply to the SRF Loans.
No Mortgage or Sale of the System
The District irrevocably covenanted, bound and o bligated itself in the Resolution not to sell,
lease, encumber or in any manner dispose of the System as a whole or any substantial part thereof (except
as provided in the Resolution) until all of the Bonds and all interest thereon shall have been paid in full or
provision for payment has been made in accordance with the Resolution.
The foregoing provision notwithstanding, the District has reserved the right to sell, lease or
otherwise dispose of any of the property comprising a part of the System in the ma nner provided in the
Resolution, if any one of the following conditions exist: (A) such property is not necessary for the
operation of the System, (B) such property is not useful in the operation of the System, (C) such property
is not profitable in the operation of the System, or (D) in the case of a lease of such property, will be
advantageous to the System and will not adversely affect the security for the Bondholders.
No Free Service
The District covenants that it will not render, or cause to be rendered, any free services of any
nature by its System or any part thereof, nor will any preferential rates be established for users of the
same class, and in the event the District or the County, or any department, agency, instrumentality, office
25694/008/01436296.DOCv2 15
or employee thereof, shall avail itself of the System or services provided by said System or any part
thereof, the same rates, fees or charges applicable to other customers receiving like services under similar
circumstances shall be charged the District, the County and any such department, agency,
instrumentality, officer or employee. The revenues so received shall be deemed to be Gross Revenues
derived from the operation of the System, and shall be deposited and accounted for in the same manner
as other Gross Revenues.
No Impairment of Rights
The District covenants not to enter into any contract or contracts, nor take any action, the results
of which might impair the rights of the Holders of the Bonds and that it will not permit the operation of
any competing water or sewer service facilities in the District; provided, however, the District reserves
the right to permit the ownership and operation of water or sewer service facilities or both by itself or by
others in any territory which is not in any service area now or hereafter served by the System.
Compulsory Water and Sewer Connections
In order better to secure the prompt payment of principal and interest on the Bonds, as well as for
the purpose of protecting the health and welfare of the inhabitants of the District, and acting under
authority of the general laws of Florida, the District will require (A) every owner of each lot in the District
which abuts upon any street or public way containing a sewer line forming a part of the sewer facilities of
the System and upon which lot a building shall subsequently be constructed for residential, commercial
or industrial use, to connect such building to such sewer facilities and to cease to use any other method
for the disposal of sewage waste or other polluting matter, and (B) every owner of each lot in the District
which abuts upon any street or public way containing a water line forming a part of the water facilities of
the System and upon which lot a building shall subsequently be constructed for residential, commercial
or industrial use, to connect such building to such water facilities.
Enforcement of Charges
The District will compel the prompt payment of rates, fees and charges imposed for service
rendered on every lot or parcel connected with the System, and to that end will vigorously enforce all of
the provisions of any ordinance or resolution of the District having to do with sewer and water
connections and charges, and all of the rights and remedies permitted the District under law, including
the requirement for the making of a reasonable deposit by each user, the requirement for disconnection of
all premises delinquent in the payment, and the securing of injunction against the disposition of sewage
or industrial waste into the sewer facilities of the System by any pr emises delinquent in the payment of
such charges.
Unit Water and Sewer Bills
In every instance in which a building or structure on a lot is connected to the sewer facilities of
the System, which building or structure is also connected to the water faciliti es of the System and receives
water therefrom, the District will submit to the owner or occupant of such lot a single bill for both water
and sewer service and will refuse to accept payment for either the water charge along or sewer charge
along without payment of the other.
Collection of System Development Fees
25694/008/01436296.DOCv2 16
The District will proceed diligently to perform legally and effectively all steps required in the
imposition and collection of the System Development Fees. Upon the due date of any such System
Development Fees, the District will diligently proceed to collect the same and will exercise all legally
available remedies to enforce such collections now or hereafter available under State law.
Remedies
Any holder of Bonds issued under the provisions of the Resolution or any trustee or receiver
acting for such Bondholders may either at law or in equity, by suit, action, mandamus, or other
proceedings in any court of competent jurisdiction, protect and enforce any and all rights under the Laws
of the State of Florida, or granted and contained in the Resolution, and may enforce and compel the
performance of all duties required by the Resolution or by any applicable statutes to be performed by the
District or by any officer thereof.
The Holder or Holders of Bonds in an aggregate principal amount of not less than twenty-five
per centum of the Bonds then Outstanding may by a duly executed certificate in writing appoint a trustee
for Holders of Bonds issued pursuant to the Resolution with authority to represent such Bondholders in
any legal proceedings for the enforcement and protection of the rights of such Bondholders and such
certificate shall be executed by such Bondholders or their duly authorized attorneys or representatives,
and shall be filed in the office of the Clerk.
Upon the occurrence of an event of default or a ratings downgrade on any of the Outstanding
Bonds below Baa3/BBB-/BBB- (or the equivalent), Bank of America, N.A. as the holder of the Series 2015
Bond, is entitled to enforce certain remedies, including but not limited to, increasing the interest rate on
the Series 2015 Bond to the maximum allowed under applicable law until such event of default is cured
or such ratings meet the thresholds required.
[Remainder of page intentionally left blank]
25694/008/01436296.DOCv2 17
ESTIMATED SOURCES AND USES OF FUNDS
The proceeds to be received from the sale of the Series 2019 Bonds, together with other legally
available monies of the District, are expected to be applied as follows:
SOURCES:
Principal Amount of Series 2019 Bonds $
Plus/Less Original Issue Premium/Discount
Total Sources $
USES:
Deposit to 2019 Project Account $
Costs of Issuance(1)
Total Uses $
(1) Includes Underwriter's discount, legal, financial advisory and other fees and expenses associ ated
with the issuance of the Series 2019 Bonds.
[Remainder of page intentionally left blank]
25694/008/01436296.DOCv2 18
DEBT SERVICE SCHEDULE
The following table sets forth the debt service for the Series 2019 Bonds and the Outstanding
Parity Bonds.
Series 2019 Bonds
Year Ended
July 1
Principal
Interest
Debt Service
Outstanding
Parity Bonds
Total
Debt Service
TOTAL
25694/008/01436296.DOCv2 19
THE COUNTY
General
The County was established in 1923 by the Legislature of the State from portions of Lee and
Monroe Counties. Its territorial limits, as they presently exist, contain approximately 2,026 square miles.
In terms of land area, it is the largest county in the State. The County is located on the southwest coast of
the Florida peninsula directly west of the Miami-Fort Lauderdale area. In 2017 the County had an
estimated population of 360,846. Part of the Everglades National Park, the United States' only subtropical
national park, comprises a portion of the County. Principal industries within the County include
wholesale and retail trade, tourism, medical services, agriculture, forestry, fishing, cattle ranching and
construction. Additional general information with respect to the County is set forth in "APPENDIX A –
General Information Regarding Collier County, Florida" attached hereto.
Board of County Commissioners
The Board is the principal legislative and governing body of the County. The Boar d consists of
five County Commissioners; one from each of the five districts elected for terms of four years. All of the
County Commissioners are residents of the County. The Board serves as the ex-officio governing board
of the District. The current members of the Board and their expiration of terms of office are:
Commissioner Office Term Expires
William L. McDaniel, Jr. Chairman November, 2020
Burt L. Saunders Vice Chairman November, 2020
Donna Fiala Commissioner November, 2020
Andy Solis Commissioner November, 2022
Penny Taylor Commissioner November, 2022
County Manager
The chief administrative official of the County is the County Manager. This official is directly
responsible to the Board for administration and operation of four administrative divisions under the
Board and for execution of all Board policies. The County Manager directs the administrative divisions
for Growth Management, Public Services, Public Utilities, and Administrative Services. The County
Manager is also responsible to the Board for the preparation of budgets and for the control of
expenditures of departments under his supervision throughout the budget year.
Budget Process
The County Manager's Director of Corporate, Financial and Management Services (the
"Director") initiates the budget planning process in January with budget policy discussions among key
members of the fiscal and administrative leadership team. These discussions culminate in the
presentation and adoption of budget policy and guidance by the Board in Febru ary. County division
heads and elected officers submit their proposed expenditures beginning in April for compilation by the
Director no later than July 1 of each year and each submission is matched against available revenues. A
balanced, proposed budget is presented to the Board for review within 15 days of receipt of an assessed
value certification from the County's Property Appraiser which is due by July 1. A tentative budget is
thereupon adopted within 15 days.
25694/008/01436296.DOCv2 20
Subsequent to public hearings, a final budget is adopted. The final budget for the fiscal year
ended September 30, 2019 was adopted by the Board on September 20, 2018. Final millage rates are
adopted, usually by late September, and the County's Tax Collector prepares tax bills for mailing on or
after November 1. Upon valid adoption, all expenditures in the budget constitute appropriations, and
amendments to the budget can be made only in accordance with the provisions of Chapter 129, Florida
Statutes, and such chapter provides that expenditures in excess of total fund budgets are unlawful.
Annual Audit
Florida law requires that an annual post audit be completed by independent certified public
accountants retained by the County. The County retained the firm of Clifton Larson Allen LLP, Naples,
Florida, to undertake the audit for the fiscal year ended September 30, 2018. The Comprehensive Annual
Financial Report for the fiscal year ended Septembe r 30, 2018 appears in APPENDIX C attached to this
Official Statement.
The Governmental Accounting Standards Board (GASB) issued Statement No. 68, "Accounting
and Financial Reporting for Pensions" ("GASB No. 68") – an amendment to GASB Statement No. 27,
"Accounting for Pensions by State and Local Governmental Employers", which is effective for the
County's fiscal year ended September 30, 2018. For a more complete description of GASB No. 68 and its
effect on the County's financial reporting, see "APPENDIX A GENERAL INFORMATION
CONCERNING COLLIER COUNTY, FLORIDA– Florida Retirement System".
THE DISTRICT
Background
In 1969, the citizens of the County adopted a referendum authorizing the Board to create the
District under Chapter 153, Part II, Florida Statutes, as a body corporate and politic in the State of Florida,
to plan, develop and operate public water and sewer facilities for existing and future development within
the County. The District exists pursuant to the District Charter which amends, re-enacts and codifies
previous special acts and amendments thereto pursuant to which the District was original ly created. The
District was created and exists under the authority of the District Charter for providing water and sewer
services and facilities to certain unincorporated areas of the County. The jurisdictional boundaries of the
water service area of the District presently covers approximately 578 square miles of unincorporated
Collier County and the jurisdictional boundaries of the sewer service area of the District presently covers
approximately 558 square miles of unincorporated Collier County. However, the District continues with
its policy not to serve in the estates areas, leaving the current water served area at 157 square miles and
the current sewer served area at 169 square miles (the difference in the two currently serviced areas is due
to a portion of the County receiving water only service from the City of Naples). With planned
developments in the northeast, the District plans to provide water service in an area covered by 211
square miles, and sewer service over 222 square miles. The System is owned and operated by the District,
the ex-officio governing board of which is the Board. See "THE SYSTEM" herein.
Powers
The District has the power to construct, install, acquire and to operate, improve, extend, enlarge
and reconstruct a water and sewer system within the District and to have the exclusive control and
jurisdiction thereof; to issue its revenue bonds or assessment bonds to pay all or part of the cost of such
25694/008/01436296.DOCv2 21
improvements; to fix and collect rates, fees and other charges (including impact fees which are referred to
herein and in the Resolution as System Development Fees) to persons or property or both for the use of
the facilities and services provided; and to acquire such lands and rights thereon as it may deem
necessary, including by eminent domain.
Management
The Collier County Public Utilities Department operates the public water and sewer facilities for
the District. The Public Utilities Department Head reports to the Deputy County Manager. The District
currently has 434 budgeted full time equivalent ("FTE") employees managing and operating the water
and sewer utilities including administration, financial operations including meter services and
centralized inventory management, engineering, technical/logistics support, water operations and sewer
operations. The sewer operations section consists of 1 57 FTE employees. The water operations section
consists of 118 FTE employees. The following individuals comprise the senior management of the Public
Utilities Department:
G. George Yilmaz, Ph.D., P.E., P.H., Public Utilities Department Head. Dr. Yilmaz assumed
duties as the Collier County Public Utilities Department Head in 2012. Dr. Yilmaz holds Master of
Science degrees in Civil Engineering and in Ocean Engineering as well as a Doctor of P hilosophy in
Engineering-Water Resource Management. He is a Licensed Professional Engineer (P.E), Licensed
Professional Hydrologist (P.H.), Registered Environmental Professional (R.E.P.), and a member of the
National Council of Examiners for Engineering and Surveying (N.C.E.E.S.). He has both private and
public-sector leadership experience including Transportation/Traffic Optimization, Combined
Stormwater/Sewer Systems, and Water Resources and Utility Management.
Joseph G. (Joe) Bellone, Director of Financial Operations Support for Public Utilities. Prior to
joining the District in October 2003, Mr. Bellone was employed by Staples Inc. for 8 years in a succession
of financial positions both domestically and in Europe. These positions included Manager Fina ncial
Planning and Analysis at the Staples headquarters in Massachusetts and Finance Manager for Staples
International in Brussels. He started his career in finance with General Electric at GE 's International
Financial Operations offices in New York City, Brussels, and Research Triangle Park in North Carolina.
Mr. Bellone then held increasingly responsible financial positions in the publishing industry in
Massachusetts. Mr. Bellone is a graduate of New York University, New York, New York, with a Bachelor
of Arts degree in Economics. He also graduated with a Master's Degree in Business Administration with
a concentration in Finance from Suffolk University, Boston, Massachusetts.
Billings and Collections
Utility Billing and Customer Service is responsible for the District's customer service, which
includes billing and collection of customer fees and charges levied for the services provided by the
District. Bills for services are rendered monthly and are due and payable twenty days after the bills are
mailed. Service is discontinued if bills are not paid within thirty -five days after bills are rendered. The
District's Utility Billing and Customer Service section is part of the Financial Operations Support
Division, managed by two senior level managers who oversee the day to day activities.
Meters are read monthly at approximately thirty-day intervals. Billings are made based on forty-
two staggered billing cycles per month. The read-to-bill time is approximately four days. Bills are printed
by a third-party contractor and delivered to a U.S. postal facility on the same day they are printed. Use of
25694/008/01436296.DOCv2 22
a lockbox, bank drafts and credit cards increase the efficiency and level of service in the receipt and
processing of payments. Customer accounts are updated daily, and over-the-counter payments are
deposited on the day of receipt. Financial records of billings and receipts are accounted for on a monthly
basis.
A state-of-the-art Customer Relationship Management (CRM) and billing system was installed in
February 2003. This CRM solution enhances both customer service and operational efficiency. As part of
the implementation of an Enterprise Asset Management system in the fiscal year ending September 30,
2016, an updated CRM has been selected and contract negotiations are currently underway. A telephone
call center system was installed in 2004. Customers can access their account (24 hours a day, seven days a
week) over the Internet for account information and to make payments. An Interactive Voice Response
(IVR) system is used to provide courtesy calls to customers pending turn-off for non-payment. The IVR
capabilities were expanded in 2014 to allow customers to query account information (24 hours a day,
seven days a week) and to make payments on their accounts (credit card, debit card and e-checks) over
the phone without talking to a service representative. Electronic Bill Presentation and Payment (e -bill)
capabilities were implemented in the fiscal year ended September 30, 2011.
The District has all its utility meters, except for certain compound meters, in a radio read
environment. Radios read meters increase accuracy of meter reads and provide staff efficiencies. The
radio read software generates trouble reports, which are addressed between the meter read process and
the bill production stage. With the acquisition of the Golden Gate System effective March 1, 2018,
Advanced Metering Infrastructure (AMI) has been integrated into the District’s CRM system.
THE SYSTEM
General
The System is comprised of both water production, transmission, treatment and distribution
facilities, and sewage collection, transmission, treatment and disposal facilities which are owned and
operated by the District. On September 11, 2018, The Board approved Resolution 2018 -152 amending the
service boundary area to include all unincorporated areas of the county not lying within service areas
granted to third parties by the water and sewer regulatory authority or as otherwise excepted by the
Special Act creating the District. Excepted areas include those served by the Immokalee Water-Sewer
District, The City of Naples, The City of Marco Island, Everglades City and the service area of the Ave
Maria Utility Company, LLLP. Since the last updated, the District acquired the Orange Tree Utility (at no
cost) and the assets of the Golden Gate Utility System (from the Florida Governmental Utility Authority
at a cost of $35,965,000). Resolution 2017 -14 was approved in January 2017 transferring the assets to the
District via an Interlocal Agreement. Resolution 2017-222 was approved in November 2017 authorizing
the acquisition of the Golden Gate Utility System, and Resolution 2018 -28 approved the closing of the
acquisition effective March 1, 2018.
The following table illustrates the historical growth of the System based on Equivalent
Residential Connections ("ERCs") and customer accounts as of each fiscal year end.
25694/008/01436296.DOCv2 23
Historical Sewer System and Water System
Equivalent Residential Connections
and Water and Sewer Accounts
Fiscal
Year
Sewer System
ERCs(1)
Water System
ERCs(1)
Number of
Water and Sewer
Accounts(2)
Account
Growth
2012 82,516 80,219 54,618 --
2013 84,263 82,237 55,658 1.9%
2014 84,516 82,248 57,059 2.5
2015 86,140 84,452 58,260 2.1
2016 88,798 87,079 60,535 3.9
2017 93,362 90,845 64,220 6.1
(1) An ERC is a standard level of service based on a typical single -family home equivalency and is
equal to 350 gpd for water service and 250 gpd for sewer service, and is calculated for purposes
of this table, based on estimated population in the service area divided by an assumed number of
persons per ERC. ERC’s for all years were based on meter equivalency factors (meter flow
capabilities) recognized in the development of the monthly rates for service which are consistent
with the flow capacities used in the application of the water and wastewater impact fees.
(2) Reflects actual number of metered accounts.
Source: ERC's - Public Resources Management Group, Inc., the District's Rate Consultant; Accounts –
Collier County Water-Sewer District
Water System
General
The Water System includes three wellfields, two regional water treatment plants, six distribution
system pumping stations, 38.25 million gallons of tank storage, and over 1,090 miles of combined potable
water transmission mains.
Water Production and Demands
When considering demand projections as they relate to planning for water facilities, the
following demand conditions are typically analyzed:
Annual Average Daily Demand ("AADD"): Total water supplied in one year divided by
the number of days in that year.
Maximum Month Daily Demand ("MMDD"): Maximum quantity of water supplied
during a single month during a one-year period, divided by the number of days in the
month. The District utilizes the MMDD for sizing water supply and treatment facilities.
For estimating projected demands, the MMDD is 1.2 times the AADD.
Maximum Day Demand ("MDD"): Maximum quantity of water supplied in a single day
during a one year period. For estimating projected demands, the MDD is 1.35 times the
AADD.
25694/008/01436296.DOCv2 24
Maximum 3 Day Demand ("M3DD"): Average of the maximum quantity of water
supplied in three consecutive days. For estimating projected demands, the M3DD is 1.3
times the AADD.
Historical water production data is summarized in the following table:
Historic Finished Water Production
Year
Per
Capita
Demand
Loss(1)
(gpcd)
Annual
Demand
AD(2)
(MG)
Annual
Average
Daily
Demand
AADD
(MGD)
Maximum
Month Daily
Demand
MMDD
(MGD)
Maximum
Day
Demand
MDD
(MGD)
Maximum 3
Day
Demand
M3DD
(MGD)
2012 170 8,676 23.8 27.6 31.7 29.6
2013 170 8,548 23.4 28.2 32.3 30.5
2014 150 9,216 25.3 28.8 32.2 31.0
2015 150 9,370 25.7 29.6 33.4 31.8
2016 150 9,541 26.1 30.6 36.6 33.5
2017 150 9,570 26.2 31.7 35.0 33.5
Percent Change
2012-2017 (12)% 10% 10% 15% 10% 13%
MG = Million Gallons
MGD = Million Gallons Per Day
gpcd = gallons per capita per day
(1) Per capital level of service demand is based upon annual average demand, permanent
population and overall level of service standard adopted by the District.
(2) Annual Demand includes Golden Gate and Orange Tree service areas. Orange Tree service
area demand data only available for FY2016 -2017.
Includes residential and commercial (general service) water demands; per capita based on estimated
permanent population served as prepared by the Growth Management Department’s
Comprehensive Planning Division.
Source: AECOM Revised Master Plan Update (12/7/18) for the Expanded District (Table 3-1)
Water demands are expected to continue increasing due to additions to the served area in t he
form of new developments in the northeast and growth within the existing served area. It is forecasted
that for the six year period of 2019 – 2024, potable water demand on an annual average daily demand
basis will increase by 141% based on AECOM Revised Master Plan Update dated December 7, 2018 for
the Expanded District.
Water Supply
Hydrogeology
The hydrogeology of the District is characterized by three major aquifer systems: the Surficial
Aquifer System ("SAS"), the Intermediate Aquifer System ("IAS"), and the Floridan Aquifer System
("FAS"). These three aquifer systems underlie the entire County and contain numerous individual
25694/008/01436296.DOCv2 25
aquifers that are separated by intervening low permeability confining units. Higher permeabilities
indicate higher yield potential as a raw water source.
The SAS is located within approximately 120 feet of the land surface and includes the water table
(the upper limit of the portion of the ground wholly saturated with water) and Lower Tamiami Aquifer.
The water table and the Lower Tamiami Aquifer are the most cost effective sources of raw water, since
the water in these sources is generally fresh, resulting in low treatment costs, and the aquifers are
shallow, so drilling expenses are relatively low. Generally, the water tabl e and Lower Tamiami Aquifers
have moderately high permeabilities and are widely used in the District to supply water to private
homeowners for potable and irrigation needs.
Withdrawals from these aquifers are severely restricted during the dry season due to the
potential for adverse environmental impacts, making the permitting of an additional large centralized use
from either of these sources unrealistic. The future development of a large public supply wellfield
tapping this source may be limited.
The IAS is located between approximately 120 feet and 750 feet beneath the land surface and
includes the Sandstone and Hawthorn Zone I Aquifers. The Sandstone Aquifer is the uppermost
hydrologic unit of the IAS. This aquifer is rarely used as a water source in the District because of its
relatively low yield. The underlying Hawthorn Zone I Aquifer is a brackish water resource with low to
moderate permeability. The FAS, which underlies all of Florida and parts of Georgia and South Carolina,
is one of the most productive aquifers in the United States and includes the Lower Hawthorn Aquifer.
The FAS is located between approximately 750 feet and 2,100 feet beneath the land surface and
includes the Lower Hawthorn, Suwannee, Ocala and Avon Park Aquifers. The upp ermost Lower
Hawthorn Aquifer has low to high permeabilities and is currently used by the District as a brackish raw
water source.
The Suwannee and Ocala Aquifers generally have low permeabilities and brackish to saline
quality groundwater. The Avon Park Aquifer, the deepest of the formations in the FAS, has relatively
high permeabilities and a saline quality groundwater. Although a potentially productive source, the
Avon Park Aquifer could be a costly raw water source due to increased drilling costs of w ells and
increased treatment costs of a highly saline groundwater.
Existing Water Supply
Currently, the District obtains water from three existing wellfields: (i) the Golden Gate Tamiami
Wellfield, which taps the Lower Tamiami Aquifer; (ii) the North Hawthorn Wellfield, which taps the
Lower Hawthorn and Hawthorn Zone I Aquifers; and (iii) the South Hawthorn Wellfield, which taps
Hawthorn Zone I and Lower Hawthorn Aquifers. The Golden Gate Tamiami and the North Hawthorn
Wellfields are located near the North County Regional Water Treatment Plant (NCRWTP). The South
Hawthorn Wellfield is located near the South County Regional Water Treatment Plant (SCRWTP). The
Golden Gate Tamiami Wellfield supplies raw water to both the NCRWTP and the SCRWTP through a
raw water booster pumping station and transmission mains.
With respect to raw water withdrawals, the Water System is currently regulated by the South
Florida Water Management District ("SFWMD"), which is a public entity of the State of Florida
established as a multipurpose water management district that has the responsibility of managing the
25694/008/01436296.DOCv2 26
water resources within its boundaries (i.e., southern Florida). SFWMD regulates raw water withdrawals
and is authorized to require permits for the consumptive use of water. All significant water users within
south Florida, including the District, require permission to withdraw raw water through the issuance of a
water user permit by the SFWMD. A permit is issued by the SFWMD when an entity such as the District
demonstrates that the water use is consistent with the public interest, is a reasonable beneficial use of
water, and will not interfere with any presently existing legal use of water. The District recently obtained
unified water use Permit Number 11-00249-W (all wells included in a single water use permit) extending
through September 29, 2036, which is summarized in the following table:
Net Water Use Permit Allocations by
SFWMD for Public Water Supply
Wellfield/
Aquifer
Water
Source # of Wells(1)
SFWMD
CUP
Allocation
(AADF
MGD)
Wellfield Firm
Capacity
(SFWMD
Permit)
(MGD)
Wellfield Firm
Capacity
(District
Inventory)
(MGD)(5)
Golden Gate Tamiami
Wellfield
Fresh
Ground Water 38 26.50 44.93 38.79
Hawthorn Zone 1
Aquifer
Brackish
Ground Water 46 16.00
96.70 63.47 Lower Hawthorn
Aquifer
Brackish
Ground Water 42(2) 13.03
Lower Tamiami
Aquifer (OT Wellfield)
Fresh
Ground Water 10(3) 0.65 4.61
TOTAL 136 56.18(4) 146.24 102.26
(1) Number of wells taken from SFWMD CUPs (Permit Number 11-00249-W and 11-00419-W)
(2) Includes 14 proposed future wells for the NERWTP as included in the SFWMD CUP 11-00249-W.
(3) Includes 6 proposed future wells as indicated in the SFWMD CUP 11-00419-W
(4) Special permit condition 5 of the SFWMD CUP 11-00249-W provides for a total annual allocation
of 55.53 MGD and limits annual withdrawals from specified sources as identified above.
However, the allocation for the Lower Hawthorn Aquifer in the SFWMD CUP 11-00249-W is
19.52 MGD. Special permit condition 5 of the SFWMD CUP 11-00419-W provides for a total
annual allocation of 646,904 gallons per day.
(5) The information of wellfield firm capacity for Orange Tree Wellfield is not available.
MGD = Million Gallons Per Day
Source: AECOM, the District's Consulting Engineer
Note: The information provided in the above table does not include permitted raw water allocation
from the Golden Gate Wellfield. The wellfield capacities provided in the table are firm capacities,
which assumes that one well in each wellfield is on standby.
The current Lower Tamiami Aquifer water supply at the Golden Gate Tamiami Wellfield has a
permitted capacity of 9,673 million-gallons (MG) per year (26.50 MGD-AADD). The Hawthorn Zone I
Aquifer water supply at the North and South Hawthorn Wellfields has a permitted capacity of 7,125 MG
per year (19.52 MGD-AADD), and the Lower Hawthorn Aquifer water supply has a permitted capacity of
4,755 MG per year (13.03 MGD-AADD). The total annual allocation for all aquifers is 20,2 70 MG per year
(55.53 MGD-AADD). The permit limits the use of fresh groundwater resources to 26.5 MGD and brackish
25694/008/01436296.DOCv2 27
water to 29.03 MGD (35.52 MGD with overlap for operational flexibility). Special permit condition 5 of
the SFWMD CUP 11-00249-W reduces the annual allocation from 26.5 MGD to 18.77 MGDMGD after
September 30, 2019. However, renewal documentation is underway to extend the current fresh
groundwater allocation.
An additional 5.00 MGD of treatment capacity is required by FY2028 to meet the District
projected growth. Constructing the first the first phase of the future Northeast Regional Water Treatment
Plant (NERWTP) with a brackish groundwater treatment process would meet this need in accordance
with the current SFWMD CVUP 11-00249-W; however, an application to modify this permit to allow 3.75
MGD of fresh water treatment at the future NERWTP is pending. The total reliable raw waster required
to utilize the capacity of the existing District treatment facilities and the initial 5 MGD phase of the future
NERWTP is 90.31 MGD. The available wellfield firm capacity as the SFWMD CUPs is 146.23 MGD and
as per the District well inventory is 102.25 MGD.
Regulatory Issues
SFWMD last prepared and issued the Lower West Coast Water Supply Plan in April, 2012. This
document is a 20-year plan for water supply for the Lower West Coast of Florida, comprised of Collier
County, Lee County, Glades County, Hendry County and portions of Charlotte and Monroe Counties.
The Plan Conclusion was stated as:
"The future water demands of the region can continue to be met through the 2030
planning horizon with appropriate management and continued diversification of water
supply resources."
The Lower West Coast Water Supply Plan recommends the diversification of supply sources,
comprising increased use of reclaimed water, increased use of supplemental water sources and the
increased use of Aquifer Storage and Recovery ("ASR") for storage. All future raw water sources are
being investigated in accordance with SFWMD recommendations. An update to the Plan was approved
by the Board on January 8, 2019, with SFWMD approval anticipated sometime later in the summer of
2019.
Water Treatment Facilities
The United States Environmental Protection Agency, the Florida Department of Environmental
Protection ("FDEP"), and the Collier County Depart ment of Health regulate the quality of the District's
water. The District is currently in compliance with all applicable regulations relating to water quality,
providing potable water that meets the Federal Safe Drinking Water Act and all State of Florida primary
and secondary standards. Primary standards set limitations for specific contaminants in drinking water.
Secondary standards establish levels for contaminants that may have adverse cosmetic or aesthetic effects
on drinking water. Currently, the primary regulatory impetus affects those districts or authorities that
utilize surface water sources rather than groundwater sources as the District does.
North County Regional Water Treatment Plant
The North County Regional Water Treatment Plant ("NCRWTP") is located on the north side of
Vanderbilt Beach Road Extension east of CR 951 in the northeast quadrant of the service area. The plant
uses groundwater withdrawn from the Lower Tamiami, Lower Hawthorn and Hawthorn Zone I
Aquifers. Membrane softening and RO treatment processes are used to produce drinking water from
25694/008/01436296.DOCv2 28
these aquifers, respectively. Membrane filtration and RO are physical treatment processes that use semi -
permeable membranes for the removal of contaminants from water. The membrane filtra tion process
uses nanofiltration across permeable membranes with approximately 85-percent recovery efficiency
(recovery efficiency is the percentage of raw feed water converted to product water). The RO process is
designed for chloride removal and provide s a recovery efficiency of about 75 percent. The 12-MGD
membrane softening process and 8-MGD RO process draw water from separate aquifers and operate
independently. The operation of the membrane softening and RO skids is operator -initiated. The
membrane softening process uses water from the Lower Tamiami Aquifer, and the RO process uses water
from the Lower Hawthorn and Hawthorn Zone I Aquifers. Both membrane processes use similar
pretreatment, including chemical addition and cartridge filtration. Howe ver, separate sets of cartridge
filters and acid/scale inhibitor metering pumps are dedicated to each process. Product water produced
by the two membrane processes is blended in a common header for post -treatment and distribution.
Chloramines are used for disinfection, and the facility has a chlorine scrubber for safety. Additional
chemical additives during post-treatment include polyphosphate for corrosion control, fluoride for public
health, and sodium hydroxide for pH adjustment. The concentrate produ ced by the two membrane
processes (reject water) also is blended and subsequently disposed into one of the two on -site injection
wells.
The membrane softening and RO processes share a common clean-in-place system that is used to
clean the membrane elements with a chemical solution. Chemical cleaning partially recovers the decline
in permeate production that occurs due to scaling and fouling of the membrane elements.
Four generators provide emergency power to allow for continued operation of the facilit y in the
event of a temporary or prolonged power outage.
South County Regional Water Treatment Plant
The South County Regional Water Treatment Plant ("SCRWTP") is located near the intersection of
CR 951 and I-75 about 5.5 miles south of the NCRWTP. The SCRWTP includes a 12-MGD lime softening
facility that receives raw water from the Lower Tamiami Aquifer and a 20 -MGD RO process that receives
raw water from the Lower Hawthorn and Hawthorn Zone I Aquifers.
For the lime softening process, the raw water is initially pumped through updraft degasification
units to remove hydrogen sulfide. Downstream of the degasification units, a splitter box serves as a feed
point for potassium permanganate prior to diverting the flow into three reactor/clarifiers for lime
softening. The softened water flows from the reactors to the re -carbonation basin where carbon dioxide is
added for pH adjustment. From the re-carbonation basin, the flow continues to the gravity sand filters.
Upstream of the filters, ammonia and chlorine are added. The filtered water then flows to the clearwell,
which is equipped with five transfer pumps to feed the ground storage tanks.
Upstream of the RO process, the raw water is chemically pretreated to adjust pH and inhibit scale
and is routed through cartridge filters. The pretreated water is then directed to the RO process to remove
calcium, chlorides and inorganic carbon. The product water leaving the RO facility goes through
degasification to remove sulfides and any remaining carbon. The degasif ied permeate flows to the new
blend tank, sized to serve both the RO and lime-softened water. A blend tank provides a point at which
the product waters from the two different water treatment processes can be combined to create one
consistent and stable finished water for storage and distribution. Once lime -softened water and RO
permeate come together in the blend tank, sodium hydroxide, chlorine (to disinfect), anhydrous ammonia
25694/008/01436296.DOCv2 29
(to form a chlorine residual), and a blend of ortho-polyphosphate (to inhibit corrosion) and sodium
silicofluoride (public health) are added for final treatment. All chemicals associated with pretreatment,
treatment, post-treatment, and cleaning of the membranes are stored, used, and disposed of, if necessary,
in accordance with Federal and State regulations. The recovery efficiencies of the SCRWTP lime softening
and RO treatment processes are approximately 97% and 75%, respectively. The transfer pumps direct the
flow to two 6-MG finished water storage tanks.
The transfer pumps direct the flow to one 2-MG and two 6-MG finished water storage tanks.
Two lime softening facility generators and two RO facility generators at the SCRWTP provide sufficient
emergency power to allow for continued operation of the facility in the event of a temporary or
prolonged power outage. The main switchgear feeds the high service pumps, and three motor control
centers. The motor control centers feed various equipment throughout the plant including; transfer
pumps, chemical systems, backwash and surface wash pumps, and miscellaneous building loads.
The existing facilities treat source water and essentially provide all potable water supplies for the
District's service area. Maximum month daily demand in 201 7 was 31.7 MGD, which is 61% of the
permitted maximum month daily capacity. The actual finished wate r demand for fiscal years ended
September 30, 2012 through and including 2017 as a percent of the permitted design capacity is shown in
the following table.
Water Production and Capacity Utilization
Fiscal
Year
Permitted Capacity
MMDD
(MGD)
Maximum Month
Daily Demand
MMDD
(MGD)
Percent of Current
Permitted Capacity
Utilized
2012 52.0 27.6 53%
2013 52.0 28.2 54
2014 52.0 28.9 55
2015 52.0 29.6 57
2016 52.0 30.6 59
2017 52.0 31.7 61
MMDD = Maximum Month Daily Demand
MGD = Million Gallons Per Day
Source: AECOM Revised Master Plan Update (12/7/18) for the Expanded District (Table 3-1)
Orange Tree Sub-Regional Water Treatment Plant
The District acquired this water plant during the acquisition in 2017. The plant was in service
initially but has been placed on stand-by since connecting this community to the District regional water
system. It is an operational facility but is not needed at this time for production.
25694/008/01436296.DOCv2 30
Golden Gate City Sub-Regional Water Treatment Plant
This plant was shut down and membranes preserved upon connection of customers to the
District’s regional water system shortly after take-over. The entire facility, and wells, are in poor
condition. This facility is not needed for production.
Water Transmission, Storage, and Distribution
Water Transmission
Pressure is maintained in the transmission system by using high service pumps located at both
water treatment plants, three water booster pumping stations and an in-line booster pump station located
strategically in the Water System. The booster pumping stations are located at Isles of Capri, Manatee
Road and Carica Road. The in-line booster station is in the northwest portion of the Water System near
Vanderbilt Drive. The Isles of Capri Pumping Station is a local distribution station in the far south
portion of the service area, providing high service pumping to the local area. The Manatee Road facilities
serve the south portion of the service area. The Carica Road facilities serve the north portion of the
service area. The Vanderbilt Booster Pumping Station was originally installed as a booster station for fire
flow demand. As the water customers and demand have increased, this station operates on a regular
basis to provide adequate water pressure in the northwest portion of the Water System.
The high service pumps at the treatment plants are operated to maintain a discharge pressure 90
psi. The other pumping stations are utilized to maintain pressures in the extremities of the Wat er System
during high demand periods.
Water Storage
Ground storage tanks at the treatment plants and at the booster pumping station sites provide
system storage and reserve capacity to help meet peak hourly demands of the Water System. The
booster pumping station storage tanks are located at Isles of Capri, Manatee Road and Carica Road. The
Isles of Capri Pumping Station is a local distribution station in the far south portion of the service area,
providing 0.25 million gallons of storage. The Manatee Road facilities serve the south portion of the
service area and include a two-million-gallon storage tank. The Carica Road facilities include two five
million gallon storage tanks.
[Remainder of page intentionally left blank]
25694/008/01436296.DOCv2 31
Finished Water Storage Facilities
Capacity of Storage Facility – MG
Name/Location
of Storage Facility
Type of
Storage Facility
Tank
Volume
Usable Storage
Capacity
NCRWTP Ground Storage Tank 12.00 11.10
SCRWTP Ground Storage Tank 14.00 12.40
Isles of Capri Distribution Pump Station 0.25 0.20
Manatee Road Pumping Station Distribution Pump Station 2.00 1.80
Carica Road Pumping Station Distribution Pump Station 10.00 9.30
Orange Tree WTP Ground Storage Tank 0.75 0.63
Golden Gate Booster Station (not currently in operation) 1.00 N/A
Total Combined Storage Capacity 40.00 35.43
MG = Million Gallons
Source: AECOM Revised Master Plan Update (12/7/18) for the Expanded District (Table 3-13)
Water Distribution
The District owns and maintains over 1,090 miles of potable water transmission and distribution
pipelines, ranging in size up to 48 inches in diameter, with over 75,000 metered service connections. The
pressure in the water distribution system is generally maintained at 80 psi, which meets the fire flow
requirements of the District. The water distribution system is generally not considered as a looped
network and there are numerous instances of some dead-end lines, which require periodic flushing to
assure water quality. The water distribution facilities are equipped with isolation valves throughout the
Water System for repairs and maintenance without shutting down significant portions of the Water
System at one time. The water distribution system also includes an adequate number of fire hydrants to
provide fire protection throughout the service area of the Water System.
Water System Residuals Disposal
The District generates two types of residuals disposal: (i) lime sludge disposal from the SCRWTP;
and (ii) liquid concentrate disposal from the membrane softening ("MS") and RO processes at the
SCRWTP and NCRWTP.
Lime solids are created from the calcium carbonate precipitation process. Excess sludge from the
reactor/clarifiers is pumped to a gravity thickener, when the solids are settled. The thickened sludge is
pumped to a dewatering process that uses belt filter presses, which are located in a dewatering building.
The dewatered sludge is hauled by truck to a land application facility using a contract hauler. The
hauling contract typically has a short term of two years and is bid at the end of this term.
Utilization of RO to treat brackish sources generates a concentrate that requires disposal.
Concentrate disposal is regulated by the FDEP. In southwest Florida, the FDEP-preferred alternative for
disposing of the by-products of the RO treatment process is injection well technology, in which the
concentrate is injected through a well into the "Boulder Zone" of the Lower Floridan Aquifer.
25694/008/01436296.DOCv2 32
The Boulder Zone in the County occurs at depths ranging from approximately 2,000 feet to 3,400
feet below land surface. It is overlain by 500 to 1,000 feet of low -permeability limestone and dolomite,
which retard the upward movement of injected fluids. The permeability of the Boulder Zone is very
high. This combined with the fact that the Boulder Zone contains salt water makes it an ideal zone for
receiving injected wastes. There are currently four Class I injection wells in the County that are used for
the disposal of treated municipal sewer and concentrate from RO desalination facilities.
Regulating agencies such as the FDEP support the use of injection wells to dispose of the by-
products of membrane treatment. Under current regulations, Class I injection wells must be permitted
through the Underground Injection Control ("UIC") program of the FDEP. The UIC permitting process
requires that the injection wells be constructed so that they have mechanical integrity and that adequate
confinement is present so that injected fluids do not migrate and impact underground sources of dr inking
water. Injection wells must undergo mechanical integrity testing every five years. Well performance and
monitoring data are also reviewed every five years as part of the operational permit renewal.
Concentrate disposal at the two existing water treatment plants is by deep well injection. The
NCRWTP has two on-site 16-inch diameter injection wells, each with a design capacity greater than the
design concentrate flow of 4.4 MGD. This provides the 100 percent enhanced reliability requirement in
the FDEP rules. At the NCRWTP, each well has a constructed capacity of 7.9 MGD. The SCRWTP
includes two 20-inch diameter deep injection wells, for the concentrate flow of 6.7 MGD. The permitted
capacity for each well is 12.7 MGD.
Condition of Water System
The existing water treatment facilities utilize treatment technologies that are appropriate for the
raw water sources and acceptable industry-wide. The District has been diligent in maintaining the Water
System and planning for future upgrades. As such, growth has dictated that a significant portion of the
Water System has been constructed in the last twenty years. The water supply and treatment facilities
appear to be in good operating condition and are maintained in accordance with prudent utility
management practices.
Projected Potable Water Demand (Capacity Planning Requirements)
Collier County Growth Management Department Comprehensive Planning Division (the
"Comprehensive Planning Division") develops population projections utilizing the following in formation:
historical population growth, Florida Bureau of Economic and Business Research ("BEBR") population
forecasts, and water service information provided by the County Water Division. In addition to
population growth, other criteria are utilized to determine future capacity of the water treatment and
distribution facilities. The Level of Service Standard ("LOSS") factors are used to forecast future water
demands, determine capacities of future facilities, and for hydraulic modeling . Revised LOSS factors for
the Water System were adopted by the District in 2015. The LOSS factors include operational standards
and a per capita water demand standard (150 gpcd).
The LOSS for water transmission systems requires a minimum system pressure of 50 pounds -per-
square-inch (psi) during the peak hour water demand period and a minimum Water System pressure of
40 psi during maximum daily demand with fire flow.
25694/008/01436296.DOCv2 33
The following table outlines the per capita demand, total annual demand, MMDD, AADD, MDD,
and M3DD from 2020 through 2034 projected for capacity planning purposes based on the County's
Water System Comprehensive Planning Division populations.
Projected Finished Water Demand – Capacity Planning Purposes(1)
Calendar
Year
Per Capita
Demand
LOSS
(gpcd)
Total Annual
Demand
AD
(MG)
Annual
Average Daily
Demand
AADD
(MGD)
Maximum
Month Daily
Demand
MMDD
(MGD)
Maximum Day
Demand
MDD
(MGD)
Maximum 3
Day Demand
M3DD
(MGD)
2020 150 11,373 30.9 37.7 41.7 40.2
2025 150 12,826 35.4 43.2 47.8 46.1
2030 150 14,089 40.5 49.4 54.6 52.6
2034 150 14,994 44.0 53.7 59.4 57.2
gpcd = gallons per capita per day
MG = Million Gallons
MGD = Million Gallons Per Day
(1) These projections are for finished water following treatment. Processes such as membrane
softening and reverse osmosis require additional water due to losses during treatment. The
amount of additional raw water required depends on the capacity and efficiency of the
treatment system.
Source: AECOM Revised Master Plan Update (12/7/18) for the Expanded District (Table 3-12)
The projected water demands are forecasted to increase over time, but at a slightly declining rate,
due to continued growth in the County, especially in the expanded service areas in the northeast and
southeast. As the service area reaches build-out after 2034, the permanent portion of the functional
population will remain constant and additional growth will only come from the seasonal component of
the functional population, which also includes the daily visitors.
Water System Capacity
The District recently completed an update to the 2014 Water Master Plan/CIP Plan integrated
with the 2018 Rate Study to develop a comprehensive plan to accommodate growth. Increasing the
Water System capacity requires that the District construct additional treatment facilities to accommodate
growth and provide additional infrastructure to deliver finished water to the customers. The combined
ultimate operational capacity of the existing facilities is 48.0 MGD. Two future treatment facilities that
are proposed to augment the treatment capacity provided by the NCRWTP and SCRWTP are the
Northeast Regional Water Treatment Plant ("NERWTP") anticipated to be on-line in 2028, and the
Southeast Regional Water Treatment Plant ("SERWTP") which will depend on demand and population
growth. The following table summarizes water treatment plant constructed and operational capacity:
25694/008/01436296.DOCv2 34
Water Treatment Plant Capacity Summary
WTP Treatment Process
Ground
Water
Resource Constructed Capacity
Recovery
Efficiency
NCRWTP Nanofiltration (NF)
Fresh Ground
Water 6 X 2 MGD = 12 MGD 85%
Low Pressure Reverse Osmosis
(LPRO)
Brackish Ground
Water 4 X 2 MGD = 8 MGD 75%
SCRWTP Lime Softening (LS)
Fresh Ground
Water 3 X 4 MGD = 12 MGD 97%
Low Pressure Reverse Osmosis
(LPRO)
Brackish Ground
Water 10 X 2 MGD = 20 MGD 75%
Total Constructed Capacity 52 MGD NA
Operational Capacity(1) 48 MGD NA
(1) In order to account for the operational need to maintain plant equipment, the constructed
capacity (52 MGD) is reduced by the largest treatment process unit (4 MGD lime softening
reactor/clarifier). The resulting operational capacity (48 MGD) is used to determine when
expansion is required. This is based on the District's Public Utilities Division Reliability
Guidelines, February 2006, consistent with the "2012 Recommended Standards for Water Works."
MMDD = Maximum Month Daily Demand
MGD = Million Gallons Per Day
Source: AECOM, the District's Consulting Engineer
Future Water Treatment Expansion
Approximately 5.0 MGD of additional treatment capacity is required to meet the projected
potable water system demands starting in 2028 and extending through build out (2034 ) on the NERWTP
site. An active solicitation for a design/build contract is anticipated to be approved by t he Board in
February 2019 to construct potable and IQ water transmission mains, wastewater collection mains,
interim wastewater treatment facilities and a 7.5 million gallon potable water storage tank and high
service pump station to serve imminent demand in the northeast area of the county. Future master
planning activities, recently awarded, will provide optimum location and needed facilities based on
future development.
Future plans beyond 2034 will potentially include a SERWTP at the 42.5-acre Manatee Road
Pumping Station site.
The expanded facilities will treat source water to provide all potable water supplies for the
District's service area. The following table outlines the per capita demand, total annual demand, MM DD,
AADD, MDD, and M3DD from 2020 through 2034 projected for capacity planning purposes.
25694/008/01436296.DOCv2 35
Future Water Production and Capacity Utilization
Year
Permitted Capacity
MMDD
(MGD)
Maximum Month
Daily Demand
MMDD
(MGD)
Percent of Current
Permitted Capacity
Utilized
2020 52.0 37.7 73%
2025 52.0 43.2 83
2030 57.0 49.4 87
2034 57.0 53.7 94
MMDD = Maximum Month Daily Demand
MGD = Million Gallons Per Day
Source: AECOM Revised Master Plan Update (12/7/18) for the Expanded District (Table 3-11)
Sewer System
General
The sewer treatment facilities in the Sewer System include two regional water reclamation
facilities, two sub-regional treatment facilities (one at Orange Tree to serve that development and the
second located at the Golden Gate City wastewater treatment site), over 709 miles of gravity sewer lines,
900 pumping stations (of which 22 are master pumping stations), and more than 447 miles of force main.
The Orange Tree facility has a current capacity to treat 0.75 MGD, with an expansion project underway in
2019 to increase that by an additional 0.75 MGD. The Golden Gate City sub-regional treatment plant has
a permitted capacity of 1.5 MGD.
Wastewater Flows
When considering sewer flows as they relate to planning and permitting for sewer facilities, the
following flow conditions are typically analyzed:
Annual Average Daily Flow ("AADF"): Total wastewater flow generated in one year
divided by the number of days in that year.
Maximum Month Daily Flow ("MMDF"): Maximum quantity of wastewater generated
during a single month during a one-year period, divided by the number of days in the
month. The District utilizes the MMDF for sizing sewer treatment facilities. For
estimating projected demands, the MMDF is 1.22 times the AADF.
Maximum 3 Day Flow ("M3DF"): Maximum average of the quantity of wastewater
generated in three consecutive days. For estimating projected flows, the M3DF is 1.3
times the AADF.
25694/008/01436296.DOCv2 36
Historical wastewater flow data is summarized in the following table:
Historical Wastewater Collection
Calendar Year
Per Capita
Flow(1)
(gpcd)
Total
Annual
Flow
AF(2)
(MG)
Annual
Average
Daily Flow
AADF
(MGD)
Maximum
Month
Daily Flow
MMDF
(MGD)
Maximum 3
Day Flow
M3DF
(MGD)
2012 100/120 5,913 16.2 18.6 25.9
2013 100/120 6,753 18.5 21.1 28.1
2014 100 6,388 17.5 20.9 23.4
2015 100 6,826 18.7 21.0 21.9
2016 100 7,045 19.3 23.1 32.4
2017 100 7,337 20.1 23.6 33.3
Percent Change
2012-2017 N/A 24% 24% 27% 29%
MG = Million Gallons
MGD = Million Gallons Per Day
gpcd = Gallons per capita per day
(1) Per capita level of service flow is based on annual average flow, permanent population and
overall level of service standard adopted by the District.
(2) Flow data includes Golden Gate and Orange Tree service areas.
Source: AECOM Revised Master Plan Update (12/7/18) for the Expanded District (Table 4-1), Collier
County Water-Sewer District.
As can be seen in the previous table, the trend in wastewater flows during the period from 2012
through 2017 shows a moderate increase expressed on an average daily flow basis. Wastewater flow
increases are expected to continue based on expected demand with development in the expanded
northeast service area and growth within the existing served area. From 2012 to 2017, the AADF
increased by 24% from 16.2 MGD to 20.1 MGD. The maximum daily flows for the District's service area
show a similar increase. It is forecasted that for the period of 2019 – 2027 annual average daily flows will
increase by 20% based on AECOM Revised Master Plan Update dated December 7, 2018 for the
Expanded District.
Wastewater Treatment and Effluent Disposal Facilities
General
The United States Environmental Protection Agency and the FDEP, regulate the wastewater
treatment and effluent disposal. Regulations for effluent quality vary depending on the nature of effluent
management. The District does not dispose of any wastewater effluent by discharge into surface waters.
The District's primary means of wastewater effluent management is by irrigation (reuse), which has more
stringent treatment requirements than disposal by other means, since customers will directly utilize the
end product. Regulations have been established so that permitted wastewater treatment facilities meet
effluent limitations for carbonaceous biological oxygen demand ("CBOD"), total suspended solids,
25694/008/01436296.DOCv2 37
nitrates, total phosphorus, fecal coliform, turbidity, and pH. The District is currently in compliance with
all applicable regulations relating to wastewater effluent quality for disposal/reuse.
North County Water Reclamation Facility
Sewer treatment in the North Service Area is provided at the North County Water Reclamation
Facility ("NCWRF"), located on the east side of Goodlette-Frank Road just south of Immokalee Road. The
NCWRF operates under FDEP Permit No. FL0141399 which expires September 8, 2023, and is designed,
permitted and operated to stay in compliance and to meet all wastewater treatment standards and
effluent disposal requirements. No issues are anticipated by the District in renewing this permit. The
plant provides advanced secondary treatment producing effluent consistent with requirements for
irrigation quality water. Irrigation water is the primary means of effluent disposal.
The NCWRF is a 24.1 MGD facility with two parallel treatment trains. In the first train, which is
an 11.1 MGD MMDF oxidation ditch (extended aeration) facility, influent wastewater flows through the
headworks where two mechanical bar screens and one manual bar screen provide preliminary treatment.
The wastewater then flows into three aerated grit basins. From the aerated grit basins, wastewater flows
into three oxidation ditches. Diffusers provide transfer of oxygen to the mixed liquor in each ditch.
Activated sludge is returned to the head of the oxidation ditches by horizontal centrifugal pumps. The
oxidation ditch effluent proceeds to five secondary clarifiers for final sedimentation. Effluent from the
secondary clarifiers flows to eight traveling bridge automatic backwash filters for solids removal.
Filtered effluent is routed to two chlorine contact chambers. Sodi um hypochlorite is injected at the head
of the chlorine contact chambers. Following the chlorine contact chambers, the treated and filtered
effluent flows to the reuse pumping station, where it can be directed to appropriate disposal.
The second parallel treatment train is a 13.0 MGD MMDF facility, which uses the Modified
Ludzack-Ettinger ("MLE") process. In the MLE Facility, the influent wastewater flows through
mechanical bar screens, aeration grit chambers, and then into aeration basins. The aeration basin effluent
proceeds to secondary clarifiers for final sedimentation. A portion of the aeration basin effluent (mixed
liquor) is recycled to the aeration basin as part of the MLE process to promote denitrification. Effluent
from the secondary clarifiers flows to traveling bridge automatic backwash filters for solids removal.
Filtered effluent is routed to chlorine contact chambers. Sodium hypochlorite is injected at the head of
the chlorine contact chambers. Following the chlorine contact chambers, the treated and filtered effluent
flows to the reuse pumping station, where it can be directed to appropriate disposal. The facility has
three 1.5-MG flow equalization tanks to increase plant reliability for handling higher peak hourly flows.
The planned build out capacity of the NCWRF is 30.6 MGD utilizing treatment technologies
present at the site.
In December 2014, the FDEP awarded the NCWRF the 2014 Plant Operations Excellence Award
in recognition of "outstanding operation through dedicated professio nalism."
In January 2019, the FDEP awarded the NCWRF the 2018 Domestic Wastewater Plant Operations
Excellence Award in recognition of outstanding treatment plant operation, maintenance and compliance.
South County Water Reclamation Facility
Wastewater treatment in the south service area is provided at the South County Water
Reclamation Facility ("SCWRF"), located approximately one mile south of Rattlesnake Hammock Road
25694/008/01436296.DOCv2 38
and nearly one mile east of US 41. The SCWRF operates under FDEP Permit No. FL0141356, which
expires October 23, 2022, and is designed, permitted and operated to stay in compliance and to meet all
wastewater treatment standards and effluent disposal requirements. No issues are anticipated in
renewing this permit. The plant provides advanced secondary treatment producing effluent consistent
with requirements for irrigation quality water. Irrigation water is the primary means of effluent disposal.
The present permitted capacity of the SCWRF is 16.0 MGD MMDF. The SCWRF is a domestic
wastewater facility that utilizes the MLE process. Pretreatment consists of a screening facility with
mechanical and manual screening, and grit-handling facilities and pumps. Effluent from the
pretreatment processes is mixed with activated sludge and recycled mixed liquor prior to feeding the
aeration tanks. Secondary treatment is provided by aeration trains (with anoxic zones and fine bubble
diffused-air zones), multi-stage centrifugal blowers, return mixed liquor pumps, secondary clarifiers,
odor control units and return activated sludge pumps. The SCWRF also has traveling bridge filters with
automatic backwash and chlorine contact chambers where sodium hypochlorite is used to disinfect
treated water. Residuals are sent to an aerated sludge holding tank and ar e dewatered by belt filter
presses. The SCWRF has two equalization tanks. The SCWRF is currently at its buildout capacity
utilizing treatment technologies present at the site.
FDEP awarded the SCWRF the 2017 Operations Excellence Award in recognition o f “outstanding
operation through dedicated professionalism.”
Orange Tree Sub-Regional Water Reclamation Facility
The Orange Tree sub-regional treatment plant is located on Oil Well Road, just east of Immokalee
Road. The wastewater treatment plant operates under FDEP Permit No. FLA014165, which expires
March 25, 2022, and is permitted and operated to stay in compliance and to meet all wastewater
treatment standards and effluent disposal requirements. The plant is an Extended Aeration process & has
a permitted capacity of 0.750 MGD, with manually cleaned bar screens, equalization basin, secondary
clarifiers, tertiary disc filters, sodium hypochlorite for disinfection and percolation ponds for effluent
disposal. Residuals are processed at this time by a vendor utilizing centrifuge technology and hauling to
and alternative treatment/disposal site. We are currently in process to increase the capacity of the facility,
by constructing an additional extended aeration plant, clarifier & other appurtenances to accommod ate
for future customers.
Golden Gate City Sub-Regional Water Reclamation Facility
The Golden Gate sub-regional treatment plant is located on 32nd Avenue SW at the intersection
with Tropicana Boulevard. This wastewater treatment facility has permitted cap acity of 1.5 MGD under
permit number FLA142140, which expires June 15, 2020, and is permitted and operated to stay in
compliance and to meet all wastewater treatment standards and effluent disposal requirements. The
plant is a Complete Mix process and has and equalization basin, pre-screening, grit removal system, 2
secondary clarifiers, sodium hypochlorite for disinfection, deep injection well & percolation ponds for
effluent disposal. Residuals are processed at this time by a vendor utilizing centrifuge t echnology and
hauling to and alternative treatment/disposal site. We are currently in discussion concerning potential
expansion to plan for the growth of the area.
25694/008/01436296.DOCv2 39
Effluent Disposal
The primary means of effluent disposal at both the NCWRF and SCWRF is dist ribution to
irrigation quality water customers for irrigation use. Excess water or water unsuitable for public access
irrigation is pumped into deep injection wells ("DIWs") as the District's secondary means of effluent
disposal. In the past, the District's two water reclamation facilities each served its own dedicated
irrigation quality water system and customers. In 2002, an interconnection between the two systems was
created allowing limited irrigation quality water and supplemental water to be exchanged between the
two service areas. Irrigation quality water is produced at the water reclamation facilities ("WRFs") as the
source of water supply for the benefit of the System. The irrigation quality water can be temporarily
stored at the WRFs in ponds on site or distributed for use or storage at customer sites. The District's goals
for the irrigation quality water system are to meet the allocations established under each customer
irrigation quality water agreement and to maximize the reuse of irrigat ion quality water, minimizing
disposal using DIWs.
The irrigation quality water system serving customers in the District has evolved from being
considered strictly effluent disposal to being an irrigation quality water service provider (water resource).
However, the primary function of the irrigation quality water system is for effluent disposal, as required
by the operating permits of the WRFs. Although some District customers have a backup supply of
irrigation water from wells, other customers depend on the District's irrigation quality water system as
their sole source of irrigation water. Customers largely consist of bulk commercial customers and
residential communities. The District is compensated by its customers based on rates established by the
District.
The permit at the NCWRF limits the effluent disposal from the plant to two options, irrigation
and deep well injection at the plant site. The NCWRF has two deep injection wells, each with a capacity
of 17 MGD MMDF (34.0 MGD peak hourly flow). There are also on-site irrigation quality water storage
ponds with a combined volume of 25 MG.
The permit at the SCWRF limits the effluent disposal from the plant to three options, irrigation,
wetlands mitigation, and deep well injection at the plant site. The SCWRF has two deep injection wells
on site, each with a capacity of 9.25 MGD MMDF (18.0 MGD peak hourly flow). There is also an on -site
irrigation quality water storage tank with a volume of 6.6 MG. The plant also has an on -site irrigation
quality water storage pond with a volume of 4.4 MG. The District owns several ponds away from the
plant site with a total volume of 101.4 MG.
Irrigation Quality Water Aquifer Storage and Recovery
The purpose of the irrigation quality water ASR wells is to store excess irrigation quality or reuse
water in the wet season for use during the dry season to help protect and preserve the fresh and potable
water supply. The irrigation quality water is stored in a deep brackish water aquifer system that is
isolated from the freshwater aquifers that lie several hundred feet above. There are hundreds of feet of
confining clays and other strata separating the brackish aquifer from the fresh water aquifer. In addition,
all stored water is pretreated to meet primary drinking standards and will be monitored by a
comprehensive system.
The District constructed one irrigation quality ASR well in 2014 and a second ASR well in 2015.
A total of five irrigation quality water ASR wells are planned by the District to be constructed f or
25694/008/01436296.DOCv2 40
irrigation quality water storage. Each ASR well is planned to receive or deliver up to 1.0 MGD of
irrigation quality water. This project will enhance the District's ability to store irrigation quality water
rather than dispose of this water by deep well injection during periods of high wastewater flows and low
irrigation demands (which occurs during the wet season).
ASR Program
Location
Irrigation Quality
Water Capacity
Fiscal Year of
Construction
Completion
Fully Functional
Storage Capacity
Available
Livingston Road(1) 1 MGD (Initial Well) 2014 2019
Livingston Road(1) 1 MGD (Second Well) 2015 2019
Livingston Road(1) 3 MGD (Three 1-MGD Wells) 2022 2026
Total ASR Capacity 5 MGD N/A N/A
(1) Provided that cycle testing yields favorable results.
Source: Collier County Water-Sewer District
Residuals Disposal
Biosolids are dewatered using the belt filter presses at both the NCWRF and the SCWRF. The
NCWRF sludge dewatering building size is adequate for the ultimate plant capacity of 30.6 MGD MM DF;
however, a sixth belt filter press will be required. Biosolids facilities at the SCWRF include two 330,000 -
gallon waste activated sludge holding tanks. The District transports biosolids out of the County to a
landfill for composting. There are currently no environmental issues regarding composting disposal.
The District issued a Request For Proposal on February 26, 2016 to examine options for public private
partnership for biosolids digestion providing direct benefit to the District through the prod uction of
compressed natural gas for vehicle fueling. Multiple proposals have been received and the selection
committee is working to identify the top two proposals to present to the Board in the near future.
Sewer Collection and Transmission Facilities
The Sewer System contains more than 709 miles of gravity sewer lines and 447 miles of force
main, and 900 pumping stations serving the sewer collection system. The pumping stations are
predominately small pump stations with a minimum of 2 submersible pumps at each station. There are
also 22 master pumping stations strategically located to transmit sewage to the water reclamation
facilities. All the master pumping stations are equipped with permanent auxiliary power generators for
use during power outages. There is a hydraulic interconnection that allows limited flow transfer between
the service area of the NCWRF and SCWRF.
Condition of Sewer System
The existing wastewater treatment facilities utilize treatment technologies that are appropriate for
secondary treatment of municipal wastewater and acceptable industry-wide. There have been no known
negative performance issues associated with these technologies. The District has been diligent in
maintaining the Sewer System and planning for future upgrades. As such, growth has dictated that a
significant portion of the Sewer System has been constructed in the last twenty years. The wastewater
collection and treatment facilities of the Sewer System appear to be in good operating condition and are
maintained in accordance with prudent utility management practices.
25694/008/01436296.DOCv2 41
Projected Flow (Capacity Planning Requirements)
Collier County Growth Management Department Comprehensive Planning Division (the
"Comprehensive Planning Division") develops population projections util izing the following information:
historical population growth, Florida Bureau of Economic and Business Research ("BEBR") population
forecasts, and water service information provided by the Wastewater Division. In addition to population
growth, other criteria are utilized to determine future capacity of the water treatment and distribution
facilities. The LOSS factors are used to forecast future water demands, determine capacities of future
facilities, and for hydraulic modeling. Revised LOSS factors for the Sewer System were adopted by the
District in 2015. The LOSS factors include operational standards and a per capita wastewater flow
standard of 100 gpcd.
Projected Wastewater Flow – Capacity Planning Purposes
Calendar
Year
Per Capita
Flow
LOSS
(gpcd)
Total
Annual
Flow
AF
(MG)
Annual
Average
Daily Flow
AADF
(MGD)
Maximum
Monthly
Daily Flow
MMDF
(MGD)
Maximum 3
Day Flow
M3DF
(MGD)
2020 100 8,417 23.1 27.7 34.6
2025 100 9,421 25.8 31.0 38.7
2030 100 10,556 28.9 34.7 43.4
2034 100 11,370 31.2 37.4 46.7
gpcd = gallons per capita per day
MG = Million Gallons
MGD = Million Gallons Per Day
Source: AECOM Revised Master Plan Update (12/7/18) for the Expanded District (Table 4-13)
Sewer System Capacity
The existing regional water reclamation facilities have a combined permitted treatment capacity
of 40.1 MGD. Additional treatment capacity will be needed in order to accommodate anticipated future
service area growth. In addition to expanding the NCWRF by 6.5 MGD, the two proposed facilities to
further augment treatment are the Northeast Water Reclamation Facility ("NEWRF") with construction to
start approximately in 2022 with on-line capacity in 2025, and the Southeast Water Reclamation Facility
("SEWRF"). A summary of the wastewater treatment capacities is shown in the following table:
25694/008/01436296.DOCv2 42
Sewer Treatment Capacities Summary
Water Reclamation
Facility
Permitted Capacity
(MGD)
NCWRF 24.1
SCWRF 16.0
Total 40.1
MGD = Million Gallons Per Day
Source: AECOM, the District's Consulting Engineer
Future Wastewater Treatment Expansion
Approximately 4.0 MGD of additional treatment capacity is required system-wide to meet the
projected wastewater system demands in the northeast area starting in 2025 through build out (2034).
The design/build contract to be awarded by the Board in February 2019 will construct a 1.5 MGD interim
treatment facility at the proposed northeast utility site to meet imminent demand proposed by
developers. A permanent 4.0 MGD regional treatment facility on this site is anticipated t o start
construction in 2022 with capacity on-line by 2025, depending on demand. Future master planning
activities will indicate other potential locations for additional capacity based on future development.
Even though significant growth is anticipated in the south service area, because the SCWRF is
currently at its buildout capacity, additional treatment must be sited elsewhere. To accommodate
growth in the south service area, 5.6 MGD of additional collections system conveyance capacity is
required to move flows from south to north starting in 2021 through 2034 (build out). This additional
collection system conveyance is being constructed in phases and will enable the 6.5 MGD expansion to
meet the needs of the entire service area, north and south.
Rates, Fees and Charges
Gross Revenues for the District is derived primarily from the application of the monthly user
charges or rates levied against all customers for utility services rendered. The rates for monthly water
and wastewater service accounted for approximately 97% of the reported Gross Revenues for the fiscal
year ended September 30, 2018. Gross Revenues also includes interest earnings on unrestricted fund
balances and realized gains from the sale of investments considered to be a component of Gr oss
Revenues. Interest earnings on funds where earnings are considered restricted (e.g., System
Development Fees, Reserve Fund balances, Renewal and Replacement Fund balances or Construction
Fund balances) are not considered as a component of the Gross Re venues of the System.
A comprehensive review of the District's user charges was completed in May, 201 8. This study,
approved by the Board in July 2018 increased rates 2.8 percent, 2.9 percent and 2.9 percent for fiscal years
ending 2019, 2020 and 2021, respectively. Ordinance No. 2001-73 enacted by the Board on December 11,
2001, as amended, enacted by the Board on June 13, 2013 (collectively, the "Rate Ordinance"), established
a schedule of monthly user rates and miscellaneous charges. The adopted rates as referenced in the Rate
Ordinance include: (i) a flat or constant service base or readiness-to-serve charge which varies by meter
size for all classes of customers; (ii) for the customers of the Water System, a consumption charge
consisting of inclining blocked rates to promote water conservation; (iii) for individually metered
residential customers of the Sewer System, a wastewater flow billing threshold of 15,000 gallons per
25694/008/01436296.DOCv2 43
month per account; and (iv) for the remaining customer classes of the Sewer System, a constant
volumetric flow charge based on one hundred percent (100%) of the metered water consumption to such
account. The following is a summary of the adopted water rates of the District, all as contained in the
Rate Ordinance.
Monthly Water Rates
Effective
October 1,
2018(1)
Effective
October 1,
2019(1)
Effective
October 1,
2020(1)
WATER SERVICE BASE CHARGES
(All customer types)
Meter Size
5/8" $22.41 $23.06 $23.73
3/4" 22.41 23.06 23.73
1" 35.27 36.34 37.38
1-1/4" 45.44 46.85 48.18
1-1/2" 67.13 69.25 71.20
2" 105.52 108.90 111.94
3" 291.14 300.61 308.94
4" 624.98 664.00 682.36
6" 1,282.95 1,324.96 1,361.56
8" 2,242.70 2,316.22 2,380.17
10" 4,062.20 4,195.43 4,311.23
12" 6,021.83 6,219.37 6,391.01
VOLUME CHARGE PER 1,000 GALLONS
(All customer types)
Block 1(2) $3.07 $3.16 $3.25
Block 2(2) 4.64 4.77 4.91
Block 3(2) 6.16 6.34 6.52
Block 4(2) 7.69 7.91 8.14
Block 5(2) 9.22 9.49 9.77
Block 6(2) 12.29 12.65 13.02
(1) Reflects rates adopted by the Board on July 10, 2018.
(2) The water consumption blocks vary in service level (amount of gallons) by meter size. The
following is the water consumption block structure as reflected in the Rate Resolution:
25694/008/01436296.DOCv2 44
Consumption Block (Gallons)
Meter
Size Block 1 Block 2 Block 3 Block 4 Block 5 Block 6
5/8" 5,000 10,000 20,000 30,000 50,000 Over 50,000
3/4" 5,000 10,000 20,000 30,000 50,000 Over 50,000
1" 8,000 16,000 32,000 48,000 80,000 Over 80,000
1-1/4" 11,000 22,000 44,000 66,000 110,000 Over 110,000
1-1/2" 17,000 34,000 68,000 102,000 170,000 Over 170,000
2" 27,000 54,000 108,000 162,000 270,000 Over 270,000
3" 75,000 150,000 300,000 450,000 750,000 Over 750,000
4" 167,000 334,000 668,000 1,002,000 1,670,000 Over 1,670,000
6" 333,000 666,000 1,332,000 1,998,000 3,330,000 Over 3,330,000
8" 583,000 1,166,000 2,332,000 3,498,000 5,830,000 Over 5,830,000
10" 1,057,000 2,114,000 4,228,000 6,342,000 10,570,000 Over 10,570,000
12" 1,568,000 3,136,000 6,272,000 9,408,000 15,680,000 Over 15,680,000
Source: Collier County Water-Sewer District
[Remainder of page intentionally left blank]
25694/008/01436296.DOCv2 45
The following is a summary of the adopted sewer rates of the District, all as contained in the Rate
Resolution.
Monthly Sewer Rates
Effective Effective Effective
October 1, 2018(1) October 1, 2019(1) October 1, 2020(1)
SEWER SERVICE BASE CHARGES
(All customer types)
Meter Size
5/8" $34.24 $35.23 $36.25
3/4" 34.24 35.23 36.25
1" 72.09 65.30 58.29
1-1/4" 94.11 85.14 75.72
1-1/2" 140.96 127.37 112.89
2" 223.80 202.24 178.67
3" 489.37 494.03 496.74
4" 865.09 981.00 1,099.65
6" 1,726.96 1,958.77 2,196.27
8" 2,864.34 3,344.79 3,840.87
10" 5,189.05 6,059.89 6,958.71
12" 7,692.78 8,984.24 10,316.66
VOLUME CHARGE PER 1,000 GALLONS
(All customer types)
All Usage(2) $4.82 $4.96 $5.10
(1) Reflects rates adopted by the Board on July 10, 2018.
(2) No Sewer user charge shall be imposed on metered water usage for individually metered
residential services above fifteen thousand (15,000) gallons per month
Source: Collier County Water-Sewer District
The financial projections indicate a need for additional rate adjustments above those that have
already been adopted by the Board primarily to provide funding to meet th e ongoing capital needs of the
System. The District plans to conduct another user rate study following the construction of the initial
northeast utility facilities in 2020 to validate the need for these additional adjustments.
In addition to the water and sewer rates for monthly service, the District also provides reuse
irrigation water to a variety of users. Such users include single -family residential customers, commercial
and multifamily common areas, and golf courses. The County currently estimates t hat approximately
90% of the treated effluent from the District's WRFs is used to provide irrigation service. A summary of
the reuse irrigation rates, as reflected in Rate Resolution 2019-129, is shown as follows:
25694/008/01436296.DOCv2 46
Monthly Reuse Irrigation Rates
Effective Effective Effective
October 1, 2018(1) October 1, 2019(1) October 1, 2020(1)
REUSE IRRIGATION SERVICE
BASE CHARGES
(All customer types)
Meter Size
5/8" and ¾" $7.50 $8.18 $8.92
1" 12.53 13.66 14.90
1-1/2" 24.98 27.24 29.70
2" 39.98 43.60 47.54
3" 112.50 122.70 133.80
4" 249.98 272.64 297.30
6" 500.03 545.36 594.70
8" 875.03 954.36 1,040.70
10" 1,585.95 1,729.74 1,886.22
12" 2,351.63 2,564.84 2,796.87
VOLUME CHARGE PER 1,000
GALLONS
Pressurized and Distributed $1.12 $1.22 $1.33
Pressurized 0.58 0.63 0.69
Bulk 0.44 0.48 0.52
(1) Rates adopted by the Board on July 10, 2018.
Source: Collier County Water-Sewer District
The District plans to review these schedules from time-to-time.
Pursuant to the Rate Ordinance, the District has also adopted a revised schedule of fees and
charges which are applicable to miscellaneous or customer requested services which became effective on
October 1, 2018 for the System. These schedules of fees will be revi ewed along with user rates during the
next user rate study. The fees generally are imposed to recover the cost of providing specific services
such as water and sewer taps and utility turn-on fees. The District does not require customer deposits
since the District has the ability to place a statutory lien on each customer's property and can discontinue
service to the extent of nonpayment. The District indicates that the level of uncollectibles for providing
service is immaterial.
25694/008/01436296.DOCv2 47
Average Utility Bill Comparison
5,000 Gallons of Utility Service(1)
Water Sewer Total
Collier County Water-Sewer District
Existing Rates Effective October 1, 2017 $37.76 $56.34 $96.10
Adopted Rates Effective October 1, 2018 38.86 60.03 98.89
Other Florida Utilities
Bonita Springs Utilities, Inc.(2) $33.47 $46.98 $77.45
City of Bradenton 29.70 37.24 66.94
Charlotte County(2) 46.08 55.99 102.07
DeSoto County 55.61 68.08 123.69
Englewood Water District(2) 26.94 40.18 67.12
FGUA - Lehigh Acres System (Lee County)(2) 43.21 69.73 112.94
City of Fort Myers(2) 33.81 86.11 119.92
Hillsborough County(2) 30.99 36.46 67.45
Lee County(2) 28.94 49.70 78.64
Manatee County(2) 20.85 47.69 68.54
City of Marco Island(2) 58.41 58.27 116.68
City of Naples(2) 15.44 40.91 56.35
City of North Port 40.77 60.37 101.14
Okeechobee Utility Authority 45.35 57.16 102.51
Pinellas County(2) 32.45 38.61 71.06
City of Punta Gorda 31.19 35.25 66.44
City of Sarasota 34.22 57.70 91.92
Sarasota County(2) 28.91 52.59 81.50
Other Florida Utilities' Average $35.19 $52.17 $87.35
(1) Other Florida utilities represent utilities located in the southwest portion of the State in general
proximity of the District.
(2) Utility is currently involved in a rate study, i s planning to conduct a rate study, or plans to
implement a rate revision or price index/pass-through adjustment within the next twelve months.
Source: Public Resources Management Group, Inc., the District's Rate Consultant
System Development Fees
In addition to the monthly rates for water and sewer service, the District currently charges
System Development Fees, which are sometimes referred to as "impact fees," based upon an equitable
and proportionate share of the cost for: (i) water production and transmission facilities; and
(ii) wastewater transmission, treatment and effluent disposal capacity of the System. Although the
Resolution refers to these fees as "System Development Fees," the ordinance enacted by the Board
establishing such fees (and the District in practice) refers to them as "Impact Fees."
The purpose of the System Development Fees is for paying or reimbursing the equitable share of
the capital costs relating to the construction, expansion or equipping of excess or unused capacity of the
System to serve new users. If an existing customer requests an increase in water or wastewater capacity
25694/008/01436296.DOCv2 48
due to increased development, an additional System Development Fee will be collected prior to the
development consistent with the net increase in demand. The current System Development Fees were
adopted pursuant to the Rate Ordinance and became effective on May 1, 2017. The following table
summarizes the adopted water and Sewer System Development Fees per Equivalent Residential
Connection ("ERC"):
Existing System Development
Fee Per ERC(1)(2)
Water Fee per ERC $2,562.00
Sewer Fee per ERC 2,701.00
Total $5,263.00
(1) Existing System Development Fees became effective on May 1, 2017, collected at issuance of
Certificate of Occupancy.
(2) ERC = Equivalent Residential Connection whereby an ERC for the Water System equates to 350
gallons per day of average water use and 250 gallons per day of average Sewer flow for the Sewer
System.
Source: Collier County Water-Sewer District
Under Florida law, System Development Fees may be validly imposed against new connections
in order to fund capital improvements that are needed to serve new connections or for debt service for
bonds or other obligations issued for such purposes (i.e., can only pay debt service o n expansion-related
debt). Such lawfully available System Development Fees must be placed in separate accounts and used
only for the capital improvements or debt service attributable to expansion or over -sizing of the System
through construction or acquisition. System Development Fee revenues fluctuate with the amount of
new construction which occurs within the District's service area. Therefore, there can be no assurance
that such revenues will not decrease or be eliminated altogether in the event that new construction, might
decrease or cease altogether within the System service area. See "SECURITY FOR THE BONDS —
General" herein for more information relating to System Development Fees.
Capital Improvement Program and Anticipated Funding
The District's Capital Improvement Program (“CIP”) for the System was substantially derived
from the 2014 Water Master Plan Update and 2014 Sewer Master Plan Update (collectively, the "2014
Capital Improvement Master Plan Updates"), respectively and used as the basis for the User Rate Study
adopted by the Board in July 2018. Substantial changes have been incorporated per the adopted capital
budget for the fiscal years ending September 30, 2019, as well as out years through 2023 which includes
estimated expansion project costs related to this Series 2019 Revenue Bond. The updated 2019 Budget
CIP including expansion related facilities through 2028 will be used in the Impact Fee Rate Study
anticipated to be presented to the Board later this Spring.
The District's CIP is reviewed by the County on an annual basis. Accordingly, the total cost of
the CIP could be more or less, depending on future demand requirements and service area needs, actual
contract awards and other economic factors.
25694/008/01436296.DOCv2 49
Estimated
Capital Cost(1)
Capital Improvement Program:
Water System CIP Projects:
R&R Water Capital Account Projects $221,705,000
Expansion Water Capital Account Projects 102,928,000
Total Water System CIP Projects: $324,633,000
Sewer System CIP Projects:
R&R Sewer Capital Account CIP Projects(2) $363,180,000
Expansion Sewer Capital CIP Projects(2) 158,056,000
Total Sewer System CIP Projects: $521,236,000
Capital Improvement Program Total $845,869,000
(1) Amounts shown for the 10-Year period 2019 through 2028 derived from AECOM’s recently
completed 2014 Master Plan Update dated December 7, 2018 including Repair/Rehab and
Expansion.
(2) Includes reclaimed (irrigation quality) water projects.
Source: Collier County Water-Sewer District and the AECOM Master Plan Update
The District anticipates funding Repair and Rehabilitation CIP needs on a "pay as you go" basis
and does not expect to issue any debt for that purpose. Modest rate increases beyond September 30, 2020
may be necessary. Initial expansion related funding needs in the first 5 years of the current CIP plan will
be funded by the 2019 Series Revenue Bond. Construction of permanent treatment facilities will require
issuance of additional debt, the timing of which is dependent on demand and population growth.
Historical Operating Results
The historical operating results for the System are presented for the fiscal years ended
September 30, 2014 through and including 2017. The historical operating results have been prepared
based on financial information compiled and provided by the County and information included in the
County's Consolidated Annual Financial Reports for such fiscal years. The operating results for the fiscal
year ended September 30, 2018 have not been finalized for accounting and financial reporting purposes as
of the date hereof. Therefore, the estimates for such fiscal year were presented rather than actuals. In
general, the historical operating results have been prepared in a manner consistent with the r equirements
of the Resolution relative to the determination of Net Revenues of the System. Therefore, the amounts
shown reflect certain differences in the presentation of the financial results when compared to the
County's annual financial reports. Specifi cally, these major differences relate to: (i) the determination of
Operating Expenses (i.e., depreciation and amortization expenses not recognized); (ii) the treatment of
interest income (i.e., does not include earnings on System Development Fees, Reserve Fund, Renewal and
Replacement Fund or Construction Fund balances, if any, which are restricted to such Funds); and
(iii) recognition of debt service payments (both principal and interest components) which, as a System
requirement, are presented on an accrued (funding) basis.
25694/008/01436296.DOCv2 50
The historical operating results for the System are summarized as follows:
Historical Operating Results(1)
Fiscal Year Ended September 30,
2014 2015 2016 2017
Estimated
2018(3)
Charges for Services(2) $107,021,275 $116,069,777 $123,481,745 $134,633,817 $145,136,218
Miscellaneous Revenue(4) 903,069 574,897 374,406 411,203 321,147
Total Operating Revenue $107,924,344 $116,644,674 $123,856,151 $135,045,020 $145,757,365
Non-Operating Revenue(5) 1,589,739 1,421,473 1,599,527 1,018,979 10,089,846
Gross Revenues $109,514,083 118,066,147 $125,455,678 $136,063,999 $155,847,211
Less: Operating Expenses(6) 69,709,955 74,343,637 84,473,620 97,904,195 89,566,541
Net Revenues Available for Debt Service $39,804,128 $43,722,510 $40,982,058 $38,159,804 $66,280,670
System Development Fees(7) $11,050,253 $12,647,736 $13,643,674 $12,457,065 $14,087,562
Special Assessment Revenues 138 8,549 0 0 0
Pledged Funds Available for Debt Service $50,854,519 $56,378,795 $54,625,732 $50,616,869 $80,368,232
SENIOR LIEN BONDS DEBT SERVICE
COVERAGE(1)
Net Revenue Debt Service Coverage
Net Revenues Available for Debt Service $39,804,128 $43,722,510 $40,982,058 $38,159,804 $66,280,670
Total Debt Service on Bonds $9,952,972 $9,712,547 $6,827,648 $6,720,696 $8,577,955
Debt Service Coverage (100% Required) 400% 450% 600% 568% 773%
AND
Pledged Funds Debt Service Coverage
Pledged Funds Available for Debt Service $50,854,519 $56,378,795 $54,625,732 $50,616,869 $80,368,232
Total Debt Service on Bonds $9,952,972 $9,712,547 $6,827,648 $6,720,696 $8,577,955
Debt Service Coverage (125% Required) 511% 580% 800% 753% 937%
[Footnotes on following page]
25694/008/01436296.DOCv2
51
(1) Except as noted below, information was obtained from the County's Comprehensive Annual
Financial Report for each respective fiscal year and other financial information provided by the
County. Rate covenant coverage requirements are defined in the Resolution. The operating
results for the fiscal year ended September 30, 2018 have not been finalized for accounting and
financial reporting purposes and estimates were presented rather than actuals.
(2) Amounts shown reflect reported revenues recognized by the System for each respective fiscal
year, and are based on rates as adopted by the Board during the historical period shown. The
charges for Services as reported by the County for the historical period shown are a result of a
combination of System growth and the implementation of such historical rate adjustments.
(3) Fiscal year ended September 30, 2018 Operation Expenses includes an estimate for the District's
share of pension expense related to the adoption of GASB 68. The District's proportionate share
of Net Pension Liability is estimated to be $22.0 million (may vary). To the extent the District’s
actual proportionate share of Net Pension Liability is higher, that will have an adverse impact on
the District's coverage calculation for such fiscal year. However, the County expects that the rate
covenant requirements will continue to be satisfied and it does not expect the impleme ntation of
GASB 68 will have any effect on its ability to pay debt service on the Series 2019 Bonds.
(4) Miscellaneous revenues include meter tapping charges, customer service fees, reuse irrigation
revenues and other similar charges.
(5) Amounts shown represent interest income on funds that are deposited in the Revenue Fund,
Principal Account, Interest Account and Renewal and Replacement Fund pursuant to the
Resolution and the water/wastewater capital accounts (accounts utilized by the District to fund
renewal and replacement projects), each of which is available for inclusion in Net Revenues and
for debt service coverage calculation purposes. Insurance reimbursements are also included in
this category.
(6) Amounts shown do not include depreciation or amor tization expenses which are non-cash
expenses and not considered as Operating Expense as defined in the Resolution.
(7) Includes all System Development Fees, only a portion of which are legally available to pay debt
service on the District Bonds under Florida law. It is possible that none of these amounts would
be legally available to pay debt service on the Bonds and therefore would not be available to be
counted for purposes of meeting the rate covenant or Additional Bonds test in the Resolution.
See "SECURITY FOR THE BONDS – General" in the Official Statement. Under Florida law,
impact fees such as the System Development Fees may be validly imposed against new
construction or development in order to fund capital improvements or capacity that are
necessitated by such new construction or development or to satisfy debt service for bonds or
other obligations issued for such purposes. Proceeds of such System Development Fees may be
used only for the capital improvements or capacity attributable to the new c onstruction or
development or to pay associated debt service.
Source: Collier County Water-Sewer District
RISK FACTORS
The future financial condition of the System could be affected adversely by, among other things,
legislation, environmental and other regulatory actions as set forth above, changes in demand for
services, economic conditions, demographic changes, and litigation. In addition to those items listed in
the preceding sentence, some of the possible changes in the future may include, but not be l imited to, the
following:
25694/008/01436296.DOCv2
52
1. The County's water and sewer facilities are subject to regulation and control by
numerous federal and state governmental agencies. Neither the District nor its consultants can predict
future policies such agencies may adopt. Future changes could result in the District having to
discontinue operations at certain facilities or to make significant capital expenditures and could generate
substantial litigation.
2. Estimates of revenues and expenses contained in this Official State ment and the
realization of such estimates, are subject to, among other things, future economic and other conditions
which are unpredictable and which may adversely affect such revenues and expenses, and in turn, the
payment of the Series 2019 Bonds.
3. While the District expects to complete the five-year capital improvement plan on time
and within budget, no assurance can be given to potential investors that the District will in fact be able to
meet such expectations. The timing and costs of completing the five-year capital improvement plan are
subject to amendment from year to year subject to market conditions and demand for water and sewer
services.
INVESTMENT POLICY
The moneys held in the funds and accounts under the Resolution may only be invested i n
Authorized Investments (as defined in the Resolution). The investment of surplus funds is currently
governed by the provisions of the County's Investment Policy, established by the Board under Section
218, Florida Statutes. The policy authorizes investment of surplus public funds in the permitted
investments described in Section 218.415, Florida Statutes.
Pursuant to a Board resolution, the Clerk of the Circuit Court and Comptroller of Collier County
and Clerk to the District (the "Clerk") administers to the investment policy for investment of such surplus
funds. The investment policy establishes guidelines as to the type, maturity, composition and risk
relating to the County's investment portfolio.
Permitted investments pursuant to such investment pol icy include the following:
1. U.S. Treasury & Government Guaranteed - U.S. Treasury obligations, and obligations the
principal and interest of which are backed or guaranteed by the full faith and credit of
the U S. Government.
2. Federal Agency/GSE - Debt obligations, participations or other instruments issued or
fully guaranteed by any U.S. Federal agency, instrumentality or government-sponsored
enterprise (GSE).
3. Corporates — U.S. dollar denominated corporate notes, bonds or other debt obligations
issued or guaranteed by a domestic corporation, financial institution, non-profit, or other
entity.
4. Municipals — Obligations, including both taxable and tax-exempt. issued or guaranteed
by any State, territory or possession of the United States, political subdivision, public
corporation, authority, agency board, instrumentality or other unit of local government
of any State or territory.
25694/008/01436296.DOCv2
53
5. Agency Mortgage Backed Securities - Mortgage-backed securities (MBS), backed by
residential, multi-family or commercial mortgages, that are issued or fully guaranteed as
to principal and interest by a U.S. Federal agency or government sponsored enterprise,
including but not limited to pass-throughs, collateralized mortgage obligations (CMOs)
and REMICs.
6. Non-Negotiable Certificate of Deposits - Non-negotiable interest bearing time certificates
of deposit, or savings accounts in banks organized under the laws of this state or in
national banks organized under the laws of the United States and doing business in this
state, provided that any such deposits are secured by the Florida Security for Public
Deposits Act, Chapter 280, Florida Statutes.
7. Depository Bank Account Now accounts in banks organized under the laws of this state
or in national banks organized under t he laws of the United States and doing business in
this state, provided that any such deposits are secured by the Florida Security for Public
Deposits Act, Chapter 280, Florida Statutes.
8. Commercial Paper — U.S. dollar denominated commercial paper issued or guaranteed
by a domestic corporation, company, financial institution, trust or other entity, including
both unsecured debt and asset-backed programs.
9. Repurchase Agreements - Repurchase agreements (Repo or RP) that meet the following
requirements:
a. Must be governed by a written SIFMA Master Repurchase Agreement which
specifies securities eligible for purchase and resale, and which provides the
unconditional right to liquidate the underlying securities should the
Counterparty default or fail to provide full timely repayment.
b. Counterparty must be a Federal Reserve Bank, a Primary Dealer as designated
by the Federal Reserve Bank of New York, or a nationally chartered commercial
bank.
c. Securities underlying repurchase agreements must be delivered to a third party
custodian under a written custodial agreement and may be of deliverable or tri -
party form. Securities must be held in the County's custodial account or in a
separate account in the name of the County.
d. Acceptable underlying securities include only securities that are direct
obligations of, or that are fully guaranteed by, the United States or any agency of
the United States, or U.S. Agency-backed mortgage related securities.
e. Underlying securities must have an aggregate current market value of at least
102% (or 100% if the counterparty is a Federal Reserve Bank) of the purchase
price plus current accrued price differential at the close of each business day.
f. Final term of the agreement must be 1 year or less.
10. Money Market Funds - Shares in open-end and no-load money market mutual funds
provided such funds are registered under the Investment Company Act of 1940 and
operate in accordance with Rule 2a-7.
25694/008/01436296.DOCv2
54
11. Fixed-Income Mutual Funds - Shares in open-end and no-load fixed-income mutual
funds whose underlying investments would be permitted for purchase under this policy
and all its restrictions
12. Local Government Investment Pools — State, local government or privately-sponsored
investment pools that are authorized pursuant to state law
13. The Florida Local Government Surplus Funds Trust Funds ("Florida Prime").
General Investment and Portfolio Limits
1. General investment limitations:
a. Investments must be denominated in U S dollars and issued for legal sate in U.S.
markets.
b. Minimum ratings are based on the highest rating by any one Nationally
Recognized Statistical Ratings Organization ("NRSRO"), unless otherwise
specified.
c. All limits and rating requirements apply at time of purchase .
d. Should a security fall below the minimum credit rating requirement for
purchase, the Clerk will notify the Board e The maximum maturity (or average
life for MBS/ABS) of any Investment is 5 years. Maturity and average life are
measured from settlement date. The final maturity date can be based on any
mandatory call, put, pre-refunding date, or other mandatory redemption date.
2. General portfolio limitations:
a. The maximum effective duration of the aggregate portfolio is 3 years.
3. Investment in the following are permitted, provided they meet all other policy
requirements:
a. Callable, step-up callable, called, pre-refunded puttable and extendable
securities. as long as the effective final maturity meets the maturity limits for the
sector.
b. Variable-rate and floating-rate securities.
c. Subordinated secured and covered debt, if it meets the ratings requirements for
the sector.
d. Zero coupon issues and strips, excluding agency mortgage-backed Interest-only
structures (I/Os).
e. Treasury TIPS
4. The following are NOT PERMITTED investments, unless specifically authorized by
statute and with prior approval of the governing body:
a. Trading for speculation.
b. Derivatives (other than callables and traditional floating or variable -rate
instruments).
c. Mortgage-backed interest-only structures (I/Os).
25694/008/01436296.DOCv2
55
d. Inverse or leveraged floating-rate and variable-rate instruments.
e. Currency, equity, index and event-linked notes (e.g. range notes), or other
structures that could return less than par at maturity.
f. Private placements and direct loans, except as may be legally permitted by Rule
144A or commercial paper issued under a 4(2) exemption from registration .
g. Convertible, high yield, and non-U.S. dollar denominated debt.
h. Short sales.
i. Use of leverage.
j. Futures and options.
k. Mutual funds, other than fixed-income mutual funds and ETFs, and money
market funds.
l. Equities, commodities, currencies and hard assets.
Any and all exceptions to the investment policy require a vote of the majority of Board.
Furthermore, the Board may revise the aforementioned investment policy from time to time.
LEGAL MATTERS
Certain legal matters in connection with the issuance of the Series 2019 Bonds are subject to an
approving legal opinion of Nabors, Giblin & Nickerson, P.A., Tampa, Florida, Bond Counsel, whose
approving opinion (a form of which is attached hereto as "APPENDIX D – Form of Bond Counsel
Opinion") will be available at the time of delivery of the Series 2019 Bonds. The actual legal opinion to be
delivered by Bond Counsel may vary from that text if necessary to reflect facts and law on the date of
delivery. Such opinion will speak only as of its date, and subsequent distribution of it by recirculation of
this Official Statement or otherwise shall create no implication that Bond Counsel has reviewed or
expresses any opinion concerning any of the matters referenced in the opinion subsequent to its date.
Bond Counsel has not been engaged to, nor has it undertaken to, review (1) the accu racy,
completeness or sufficiency of this Official Statement or any other offering material relating to the Series
2019 Bonds; provided, however, that Bond Counsel will render an opinion to the Underwriter of the
Series 2019 Bonds (upon which opinion only the Underwriter may rely) relating to the fairness of the
presentation of certain statements contained herein under the heading "TAX EXEMPTION" and certain
statements which summarize provisions of the Resolution, the Series 2019 Bonds, and federal tax law,
and (2) the compliance with any federal or state law with regard to the sale or distribution of the Series
2019 Bonds.
Certain legal matters will be passed upon by Jeffrey A. Klatzkow, Esq., District Attorney, and by
Bryant Miller Olive P.A., Tampa, Flori da, Disclosure Counsel to the District.
LITIGATION
There is no pending or, to the knowledge of the County, any threatened litigation against the
County of any nature whatsoever which in any way questions or affects the validity of the Series 201 9
Bonds, or any proceedings or transactions relating to their issuance, sale, execution, or delivery, or the
adoption of the Resolution, or the pledge of the Pledged Funds. Neither the creation, organization or
existence, nor the title of the present members of the Board, or other officers of the County is being
contested.
25694/008/01436296.DOCv2
56
The County experiences other claims, litigation, and various legal proceedings which,
individually are not expected to have a material adverse effect on the operations or financial condition of
the County, but may, in the aggregate, have a material impact thereon. In the opinion of the County
Attorney, however, the County will either successfully defend such actions or otherwise resolve such
matters without any material adverse consequences on the financial condition of the County.
DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS
Pursuant to Section 517.051, Florida Statutes, as amended, no person may directly or indirectly
offer or sell securities of the County except by an offering circular containing full and fair disclosure of all
defaults as to principal or interest on its obligations since December 31, 1975, as provided by rule of the
Office of Financial Regulation within the Florida Financial Services Commission (the "FFSC"). Pursuant
to administrative rulemaking, the FFSC has required the disclosure of the amounts and types of defaults,
any legal proceedings resulting from such defaults, whether a trustee or receiver has been appointed over
the assets of the County or the District, and certain additional financial information, unless the District
believes in good faith that such information would not be considered material by a reasonable investor.
Neither the County nor the District is not and has not been in default on any bond issued si nce
December 31, 1975 that would be considered material by a reasonable investor in the Series 2019 Bonds.
Neither the County nor the District has undertaken an independent review or investigation of
securities for which it has served as conduit issuer. Neither the County nor the District believes that any
information about any default on such securities is appropriate and would be considered material by a
reasonable investor in the Series 2019 Bonds because the County or the District would not have been
obligated to pay the debt service on any such securities except from payments made to it by the private
companies on whose behalf such securities were issued and no funds of the County or the District would
have been pledged or used to pay such securities or the interest thereon.
TAX EXEMPTION
Opinion of Bond Counsel
In the opinion of Bond Counsel, the form of which is included as APPENDIX D hereto, the
interest on the Series 2019 Bonds is excludable from gross income of the owners thereof for federal
income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum
tax under existing statutes, regulations, rulings and court decisions. Failure by the County to comply
subsequently to the issuance of the Series 2019 Bond s with certain requirements of the Internal Revenue
Code of 1986, as amended (the "Code"), including but not limited to requirements regarding the use,
expenditure and investment of Series 2019 Bond proceeds and the timely payment of certain investment
earnings to the Treasury of the United States, may cause interest on the Series 2019 Bonds to become
includable in gross income for federal income tax purposes retroactive to their date of issuance. The
County has covenanted in the Resolution to comply with all provisions of the Code necessary to, among
other things, maintain the exclusion from gross income of interest on the Series 2019 Bonds for purposes
of federal income taxation. In rendering its opinion, Bond Counsel has assumed continuing compliance
with such covenants.
25694/008/01436296.DOCv2
57
Internal Revenue Code of 1986
The Code contains a number of provisions that apply to the Series 2019 Bonds, including, among
other things, restrictions relating to the use or investment of the proceeds of the Series 2019 Bonds and the
payment of certain arbitrage earnings in excess of the "yield" on the Series 2019 Bonds to the Treasury of
the United States. Noncompliance with such provisions may result in interest on the Series 2019 Bonds
being included in gross income for 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 ownership of, receipt or accrual of interest on, or disposition of, the
Series 2019 Bonds. Prospective purchasers of the Series 2019 Bonds should be aware that the ownership
of the Series 2019 Bonds may result in other collateral federal tax consequences. For example, ownership
of the Series 2019 Bonds may result in collateral tax consequences to various types of corporations
relating to (1) denial of interest deduction to purchase or carry such Series 2019 Bonds, (2) the branch
profits tax, and (3) the inclusion of interest on the Series 2019 Bon ds in passive income for certain
Subchapter S corporations. In addition, the interest on the Series 2019 Bonds may be included in gross
income by recipients of certain Social Security and Railroad Retirement benefits.
PURCHASE, OWNERSHIP, SALE OR DISPOSITION OF THE SERIES 2019 BONDS AND THE
RECEIPT OR ACCRUAL OF THE INTEREST THEREON MAY HAVE ADVERSE FEDERAL TAX
CONSEQUENCES FOR CERTAIN INDIVIDUAL AND CORPORATE BONDHOLDERS, INCLUDING,
BUT NOT LIMITED TO, THE CONSEQUENCES DESCRIBED ABOVE. PROSPECTIVE SERIES 2019
BONDHOLDERS SHOULD CONSULT WITH THEIR TAX SPECIALISTS FOR INFORMATION IN
THAT REGARD.
Other Tax Matters
Interest on the Series 2019 Bonds may be subject to state or local income taxation under
applicable state or local laws in other jurisdictions. Purchasers of the Series 2019 Bonds should consult
their own tax advisors as to the income tax status of interest on the Series 2019 Bonds in their particular
state or local jurisdictions.
During prior years, legislative proposals have been introduced in Co ngress, and in some cases
enacted, that altered certain federal tax consequences resulting from the ownership of obligations that are
similar to the Series 2019 Bonds. In some cases these proposals have contained provisions that altered
these consequences on a retroactive basis. Such alteration of federal tax consequences may have affected
the market value of obligations similar to the Series 2019 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 2019 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 2019 Bonds.
Original Issue Discount
Certain of the Series 2019 Bonds (the "Discount Bonds") may be offered and sold to the public at
an original issue discount, which is the excess of the principal amount of the Discount Bonds over the
initial offering price to the public, excluding bond houses, brokers or similar persons or organizations
25694/008/01436296.DOCv2
58
acting in the capacity of underwriters or wholesalers, at which price a substantial amount of the Discount
Bonds of the same maturity was sold. Original issue disco unt represents interest which is excluded from
gross income for federal income tax purposes to the same extent as interest on the Series 2019 Bonds.
Original issue discount will accrue over the term of a Discount Bond at a constant interest rate
compounded semi-annually. A purchaser who acquires a Discount Bond at the initial offering price
thereof to the public will be treated as receiving an amount of interest excludable from gross income for
federal income tax purposes equal to the original issue disco unt accruing during the period he holds such
Discount Bonds and will increase its adjusted basis in such Discount Bonds by the amount of such
accruing discount for purposes of determining taxable gain or loss on the sale or other disposition of such
Discount Bonds. The federal income tax consequences of the purchase, ownership and prepayment, sale
or other disposition of Discount Bonds which are not purchased in the initial offering at the initial
offering price may be determined according to rules which di ffer from those above. Owners of Discount
Bonds should consult their own tax advisors with respect to the precise determination for federal income
tax purposes of interest accrued upon sale, prepayment or other disposition of such Discount Bonds and
with respect to the state and local tax consequences of owning and disposing of such Discount Bonds.
Bond Premium
Certain of the Series 2019 Bonds (the "Premium Bonds") may be offered and sold to the public at
a price in excess of the principal amount of such Premium Bond, which excess constitutes to an initial
purchaser amortizable bond premium which is not deductible from gross income for Federal income tax
purposes. The amount of amortizable bond premium for a taxable year is determined actuarially on a
constant interest rate basis over the term of each Premium Bond (or in the case of certain Premium Bonds
callable prior to maturity, the amortization period and yield must be determined on the basis of the
earliest call date that results in the lowest yield on the Premium Bond). For purposes of determining gain
or loss on the sale or other disposition of a Premium Bond, an initial purchaser who acquires such
obligation in the initial offering to the public at the initial offering price is required to decrease such
purchaser's adjusted basis in such Premium Bond annually by the amount of amortizable bond premium
for the taxable year. The amortization of bond premium may be taken into account as a reduction in the
amount of tax-exempt income for purposes of determining various other tax consequences of owning
such Premium Bonds. The federal income tax consequences of the purchase, ownership and sale or other
disposition of Premium Bonds which are not purchased in the initial offering at the initial offering pric e
may be determined according to rules which differ from those described above. Owners of the Premium
Bonds are advised that they should consult with their own advisors with respect to the state and local tax
consequences of owning such Premium Bonds.
RATINGS
Fitch Ratings, Inc. ("Fitch") and Moody's Investors Service, Inc. ("Moody's") have assigned their
ratings of "___" and " ___," respectively, to the Series 2019 Bonds. The ratings reflect only the views of
said rating agencies and an explanation of the ratings may be obtained only from said rating agencies.
There is no assurance that such ratings will continue for any given period of time or that they will not be
lowered or withdrawn entirely by the rating agencies, or any of them, if in their judgme nt, circumstances
so warrant. A downward change in or withdrawal of any of such ratings, may have an adverse effect on
the market price of the Series 2019 Bonds. An explanation of the significance of the ratings can be
received from the rating agencies, at the following addresses: Fitch Ratings, Inc., One State Street Plaza,
New York, New York 10004 and Moody's Investors Service, Inc., 99 Church Street, New York, New York
10007.
25694/008/01436296.DOCv2
59
FINANCIAL ADVISOR
PFM Financial Advisors LLC, Coral Gables, Florida, is the Financial Advisor to the District with
respect to the sale of the Series 2019 Bonds. The Financial Advisor has assisted the District in the
preparation of this Official Statement and has advised the District as to other matters relating to the
planning, structuring and sale of the Series 2019 Bonds. The Financial Advisor will not engage in any
underwriting activities with regard to the issuance and sale of the Series 201 9 Bonds. The Financial
Advisor is not obligated to undertake and has not undertaken to make an independent verification or to
assume responsibility for the accuracy, completeness or fairness of the information contained in this
Official Statement.
PFM Financial Advisors LLC is an independent advisory firm and is not engaged in the business of
underwriting, trading or distributing municipal or other public securities.
AUDITED FINANCIAL STATEMENTS
The general purpose financial statements of the County for the fiscal year ending September 30,
2018 of Clifton Larson Allen LLP, Naples, Florida (the "Auditor") are included in "APPENDIX C – Collier
County Comprehensive Annual Financial Report For Fiscal Year Ended September 30, 2018" hereto. Such
statements speak only as of September 30, 2018. The consent of the County's auditor to include in this
Official Statement the aforementioned report was not requested, and such report of the County is
provided only as publicly available documents. The auditor was not requested nor did they perform any
procedures with respect to the preparation of this Official Statement or the information presented herein.
The County expects the Comprehensive Annual Financial Report for the fiscal year ended September 30,
2018 to be available prior to the delivery of the Series 2019 Bonds, to be included in a supplement to this
Official Statement.
The Series 2019 Bonds are payable solely from Pledged Funds in the manner and to the extent as
described in the Resolution and herein and are not otherwise secured by, or payable from, the general
revenues of the District. See "SECURITY FOR THE BONDS" herein. Such Comprehensive Annual
Financial Report is presented for general information purposes only.
The County covenanted and agreed in the Resolution to, immediately after the close of each fiscal
year, cause the financial statements of the County to be properly audited by a recognized independent
certified public accountant or recognized independent firm of certified public accountants, and shall
require such accountants to complete their report on the annual financial statements in accordance with
applicable law. The annual financial statements shall be prepared in conformity with generally accepted
accounting principles consistently applied.
UNDERWRITING
The Series 2019 Bonds are being purchased by the Underwriter shown on the cover of the Official
Statement (the "Underwriter") at an aggregate purchase price of $____________ (which equals the
principal amount of the Series 2019 Bonds, plus/less an original issue premium/discount of
$____________, less the Underwriter's discount of $___________). The Underwriter's obligations are
subject to certain conditions precedent contained in the Official Notice of Sale which was prepared by the
District, and it will be obligated to purchase all of the Series 2019 Bonds if any Series 2019 Bonds are
purchased. The Series 2019 Bonds may be offered and sold to certain dealers (including dealers
25694/008/01436296.DOCv2
60
depositing such Series 2019 Bonds into investment trusts) at prices lower than such public offering prices,
and such public offering prices may be changed, from time to time, by the Underwriter.
CONTINGENT FEES
The District has retained Bond Counsel, the Financial Advisor and Disclosure Counsel with
respect to the authorization, sale, execution and delivery of the Series 2019 Bonds. Payment of the fees of
such professionals and an underwriting discount to the Underwriter is each contingent upon the issuance
of the Series 2019 Bonds.
ENFORCEABILITY OF REMEDIES
The remedies available to the owners of the Series 2019 Bonds upon an event of default under the
Resolution are in many respects dependent upon judicial actions which are often subject to discretion and
delay. Under existing constitutional and statutory law and judicial decisions, including specifically the
federal bankruptcy code, the remedies specified by the Resolution and the Series 2019 Bonds may not be
readily available or may be limited. The various legal opinions to be delivered concurrently with the
delivery of the Series 2019 Bonds, including Bond Counsel's approving opinion, will be qualified, as to
the enforceability of the remedies provided in the various legal instruments, by limitations imposed by
bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors enacted
before or after such delivery. See "APPENDIX B – Composite Resolution" attached hereto for a
description of events of default and remedies.
CONTINUING DISCLOSURE
The District has covenanted for the benefit of the Series 2019 Bondholders to provide certain
financial information and operating data relating to the District and the Series 2019 Bonds in each year,
and to provide notices of the occurrence of certain enumerated material events. The District has agreed
to file annual financial information and operating data and the audited financial statements with each
entity authorized and approved by the SEC to act as a repository (each a "Repository") for purposes of
complying with Rule 15c2-12 adopted by the SEC under the Securities Exchange Act of 1934 (the "Rule").
Effective July 1, 2009, the sole Repository is the Municipal Securities Rulemaking Board ("MSRB"). The
District has agreed to file notices of certain enumerated material events, when and if they occur, with the
Repository.
The specific nature of the financial information, operating data, and of the type of events which
trigger a disclosure obligation, and other details of the undertaking are described in "APPENDIX E -
Form of Continuing Disclosure Certificate" attached hereto. The Continuing Disclosure Certificate shall
be executed by the District prior to the issuance of the Series 2019 Bonds. These covenants have been
made in order to assist the Underwriter in complying with the continuing disclosure requirements of the
Rule.
[With respect to the Series 2019 Bonds, no party, other than the District, is obligated to
provide, nor is expected to provide, any continuing disclosure information with respect to the Rule.
The District and the County fully anticipate satisfying all future disclosure obligations required
pursuant to the Rule. The County has entered into a contract with Digital Assurance Certification,
LLC to provide continuing disclosure dissemination agent services for all of its outstanding bond
issues.
25694/008/01436296.DOCv2
61
Further, in order to demonstrate its continued commit ment to continuing disclosure best
practices, the District has included disclosure of several non -material instances of late filings in this
Official Statement in the interest of being transparent. All relate to bond insurer ratings upgrades
and/or downgrades. The bond insurer upgrades and/or downgrades occurred on the following dates:
March 18, 2014 and May 21, 2014. All such bond insurer rating changes filings have since been made
as it relates to bond issues that remain outstanding as of the date her eof. The underlying ratings
upgrade of the Water and Sewer Revenue Bonds, Series 2006 on June 4, 2014 by Fitch was filed
promptly as required by the related continuing disclosure undertaking, but not within 10 business
days. It was filed 3 business days late on June 23, 2014. In summary, the County and the District do
not believe that the disclosures described in this paragraph to be material in complying 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 District or the County and certain reports and statistical data referred to herein do not purport to be
complete, comprehensive and definitive and each such summary and reference is qualified in its entirety
by reference to each such document for full and complete statements of all matters of fact relating to the
Series 2019 Bonds, the security for the payment of the Series 2019 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 Crystal K. Kinzel, Clerk of the Circuit Court and Comptroller of Collier
County and Clerk to the District, Collier County Courthouse Annex, 3315 Tamiami Trail East, 2nd Floor,
Board Minutes and Records Department, Naples, Florida 34112-5324, phone (239) 252-7240 or the
County's Financial Advisor, PFM Financial Advisors LLC, 2222 Ponce de Leon Boulevard, Third Floor,
Coral Gables, Florida 33134.
Any statements made in this Official Statement involving matters of opinion or of estimates,
whether or not so expressly stated are set forth as such and not as representations of fa ct, and no
representation is made that any of the estimates will be realized. Neither this Official Statement nor any
statement that may have been made verbally or in writing is to be construed as a contract with the
owners of the Series 2019 Bonds.
The appendices attached hereto are integral parts of this Official Statement and must be read in
their entirety together with all foregoing statements.
25694/008/01436296.DOCv2
62
AUTHORIZATION OF OFFICIAL STATEMENT
The execution and delivery of this Official Statement has been duly autho rized and approved by
the District. At the time of delivery of the Series 2019 Bonds, the District will furnish a certificate to the
effect that nothing has come to their attention which would lead it to believe that the Official Statement
(other than information herein related to DTC, the book-entry only system of registration and the
information contained under the caption "TAX EXEMPTION" and as to which no opinion shall be
expressed), as of its date and as of the date of delivery of the Series 2019 Bonds, contains an untrue
statement of a material fact or omits to state a material fact which should be included therein for the
purposes for which the Official Statement is intended to be used, or which is necessary to make the
statements contained therein, in the light of the circumstances under which they were made, not
misleading.
COLLIER COUNTY WATER-SEWER DISTRICT
By:
Chairman, Board of County
Commissioners Collier County, Florida
Approved as to form
and legal sufficiency:
County Attorney
25694/008/01436296.DOCv2}
APPENDIX A
GENERAL INFORMATION REGARDING COLLIER COUNTY, FLORIDA
25694/008/01436296.DOCv2 A-1
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.
General Information
The County was established in 1923 by the Legislature of the State of Florida (the "State") from
portions of Lee and Monroe Counties. Its territorial limits, as they presently exist, contain approximately
2,026 square miles. In terms of land area, it is the largest county in the State. The County is located on
the southwest coast of the Florida peninsula directly west of the Miam i-Fort Lauderdale area. In 2018, the
County had an estimated population of 372,880. Principal industries within the County include
wholesale and retail trade, tourism, medical services, agriculture, forestry, fishing, cattle ranching and
construction.
Board of County Commissioners
The Board of County Commissioners (the "Board") is the principal legislative and governing
body of the County. The Board consists of five County Commissioners; one from each of the five districts
elected for terms of four years. All of the County Commissioners are residents of the County. The
current members of the Board and their expiration of terms of office are:
Commissioner Office Term Expires
William L. McDaniel, Jr. Chairman November, 2020
Burt L. Saunders Vice Chairman November, 2020
Donna Fiala Commissioner November, 2020
Andy Solis Commissioner November, 2022
Penny Taylor Commissioner November, 2022
County Manager
The chief administrative official of the County is the County Manager. This official is directly
responsible to the Board for administration and operation of four administrative divisions under the
Board and for execution of all Board policies. The County Manager directs the administrative divisions
for Growth Management, Public Services, Public Utilities, and Administrative Services. The County
Manager is also responsible to the Board for the preparation of budgets and for the control of
expenditures of departments under his supervision throughout the budget year.
Budget Process
The County Manager's Director of Corporate, Financial and Management Services (the
"Director") initiates the budget planning process in January with budget policy discussions among key
members of the fiscal and administrative leadership team. These discussions culminate in the
presentation and adoption of budget policy and guidance by the Board in February. County division
heads and elected officers submit their proposed expenditures beginning in April for compilation by the
25694/008/01436296.DOCv2 A-2
Director no later than July 1 of each year and each submission is matched against available revenues. A
balanced, proposed budget is presented to the Board for review within 15 days of receipt of an assessed
value certification from the County's Property Appraiser which is due by July 1. A tentative budget i s
thereupon adopted within 15 days.
Subsequent to public hearings, a final budget is adopted. The final budget for the fisc al year
ended September 30, 2019 was adopted by the Board on September 20, 2018. Final millage rates are
adopted, usually by late September, and the County's Tax Collector prepares tax bills for mailing on or
after November 1. Upon valid adoption, all expenditures in the budget constitute appropriations, and
amendments to the budget can be made only in accordance with the provisions of Chapter 129, Florida
Statutes, and such chapter provides that expenditures in excess of total fund budgets are unlawful.
Annual Audit
Florida law requires that an annual post audit be completed by independent certified public
accountants retained by the County. The County retained the firm of Clifton Larson Allen LLP, Naples,
Florida, to undertake the audit for the fiscal year ended September 30, 2018. The Comprehensive Annual
Financial Report for the fiscal year ended September 30, 2018 appears in APPENDIX B attached to this
Official Statement.
The Governmental Accounting Standards Board (GASB) issued Statement No. 68, "Accounting
and Financial Reporting for Pensions" ("GASB No. 68") – an amendment to GASB Statement No. 27,
"Accounting for Pensions by State and Local Governmental Employers", which was effective for the
County's fiscal year ended September 30, 2018. For a more complete description of GASB No. 68 and its
effect on the County's financial reporting, see "– Florida Retirement System" below.
Population
The County has experienced rapid population growth in recent decades. The following table
presents historical and projected population growth for the County, the State, and the United States for
the period of 1960 to 2020:
POPULATION TRENDS
Year
County
Population
Population
Percentage
Increase
State
Population
Population
Percentage
Increase
United
States
Population
Population
Percentage
Increase
1960 15,753 --- 4,951,560 --- 179,323,175 ---
1970 38,040 141.5% 6,791,418 37.1% 203,302,031 13.4%
1980 85,971 126.0 9,746,961 43.5 226,504,825 11.4
1990 152,099 76.9 12,938,071 32.7 250,410,000 10.6
2000 251,377 65.3 15,982,378 23.5 274,634,000 9.7
2010 321,520 27.9 18,801,310 17.6 308,745,538 12.4
2020* 384,400 19.6 21,326,800 13.4 322,742,000 4.5
*Estimates on County and State population use medium estimates of population growth.
Source: University of Florida, Bureau of Economic and Business Research, Population Program,
unpublished data. Census data from U.S. Bureau of Census.
25694/008/01436296.DOCv2 A-3
Most of the growth of Collier County is due to migration. The estimated median age of the
County's population was [48.5] years according to the Collier County Comprehensive Annual Financial
Report for Fiscal Year Ending September 30, 2018.
COLLIER COUNTY EMPLOYMENT
BY MAJOR INDUSTRY
Industry Establishments Employees
Retail Trade 1,622 21,584
Accommodation and Food Services 903 20,695
Health Care and Social Assistance 1,123 19,217
Construction 1,980 15,094
Administrative and Waste Services 1,183 9,587
Educational Services 119 7,650
Arts, Entertainment, and Recreation 275 8,271
Other Services (except Public Administration) 1,314 6,215
Professional and Technical Service 1,932 5,491
Public Administration 59 5,705
Agriculture, Forestry, Fishing and Hu nting 97 3,720
Real Estate and Rental and Leasing 1,221 3,989
Finance and Insurance 683 4,037
Manufacturing 297 3,840
Wholesale Trade 434 3,525
Transportation and Warehousing 267 2,207
Information 177 1,368
Management of Companies and Enterprises 145 366
Utilities 23 193
Mining 7 43
Unclassified Establishments 118 73
Source: Florida Research and Economic Information Database Application, Labor Market Statistics,
Quarterly Census of Employment and Wages Program.
25694/008/01436296.DOCv2 A-4
COLLIER COUNTY EMPLOYMENT
(2008-2017)
Year
Labor
Force Employment Unemployment
County
Unemployment
Rate
State of
Florida
Unemployment
Rate
2008 148,368 137,814 10,554 7.1% 6.3%
2009 143,337 127,434 15,903 11.1 10.4
2010 145,349 128,427 16,922 11.6 11.1
2011 148,810 133,729 15,081 10.1 10.0
2012 152,851 139,903 12,948 8.5 8.5
2013 155,486 144,508 10,978 7.1 7.2
2014 160,130 150,596 9,534 6.0 6.3
2015 163,488 154,976 8,512 5.2 5.5
2016 169,288 161,411 7,877 4.7 4.8
2017 171,979 164,974 7,005 4.1 4.2
Source: Florida Research and Economic Information Database Application, Labor Market Statistics, Local
Area Unemployment Statistics Program.
BUILDING PERMIT ACTIVITIES IN COLLIER COUNTY
(2009-2018)
Year
Residential
Valuation(1)
Single
Family Units
Multi-
Family Units
2009 558 310 $200,991
2010 747 513 284,339
2011 866 320 272,942
2012 1,149 304 313,259
2013 1,540 817 448,610
2014 2,195 722 630,402
2015 2,611 954 795,923
2016 2,788 782 875,143
2017 2,615 846 688,050
2018 _____ _____ _______
(1) Valuation in thousands of dollars.
Source: Collier County, Florida Finance Department.
25694/008/01436296.DOCv2 A-5
[Agriculture
Agriculture is a dominant factor in the economy of the County. Rainfall averages about 52
inches annually with most of the precipitation occurring during the late spring and summer. The high
yearly rainfall and year-round mild temperature enable agriculture to be a productive sector of the
County economy. The agricultural industry represents five percent of the workforce. Farming
activities are located approximately 40 miles inland primarily centered around the community of
Immokalee. Major crops include tomatoes, peppers, cucumbers, melons and citrus. Beef cattle are
also a significant farming commodity.
Tourism
Tourism is a major factor in the economy of the County. Visitors to the County enjoy its Gulf
of Mexico beaches, golf, tennis and other attractions. Everglades National Park, the United States only
subtropical National Park, located near Naples, comprises a substantial porti on of the County.
Collier-Seminole Park and Corkscrew Swamp are also located nearby. Salt water fishing in the Gulf
of Mexico, as well as fresh water fishing, makes the many lakes and waterways popular vacation
spots. The County is regarded as one of the largest shelling areas in the United States.
Transportation
The County is served by U.S. Highway 41 (otherwise known as the Tamiami Trail) and
Interstate 75, which links Naples to the east coast of Florida and intersects U.S. Highway 27, providing
access to the Florida Turnpike. Interstate 75 also provides access to the County from the North.
Greyhound Bus Lines connects the County to all points within the State.
Air service is available at the Naples Airport owned by the City of Naples and covers an area
of approximately 650 acres. The airport has two lighted 5,000 feet hard surfaced runways, each 150 feet
wide. Activity at this airport mainly consists of charter flights and general aviation. Air service at the
Southwest Florida International Airp ort near Fort Myers, 35 miles north of Naples, reaches many
major cities. In addition, the County owns and operates three public airports: the Marco Island
Executive Airport and the Immokalee and Everglades City Airparks.
Educational System
The County school system serves more than 47,000 students in 48 schools, including six charter
schools. The public schools provide a varied adult education program and a special program for pre -
school children. There are several private and parochial schools in the County offering classes from
kindergarten through the twelfth grade. Florida Southwestern State College's main campus in Fort
Myers, with a branch campus in Naples, offers technical training as well as college preparation for
students. In August of 2003, Ave Maria University, a private Catholic University located within the
County, began admitting students. The University offers bachelor's degrees in biology, classics,
economics, history, literature, mathematics, music, philosophy, politics and theology. Pre-professional
programs are offered in pre-law, pre-medicine and pre-business. Although not located within the
County, Florida Gulf Coast University, the tenth college in the State University System, is operating in
Lee County, immediately north of th e County.
25694/008/01436296.DOCv2 A-6
Medical Facilities
Naples Community Hospital, a non -profit, private corporation provides health services to the
residents of the County. It opened as a 50 -bed facility in 1956, financed exclusively by contributions
from members of the community. Since 1956, Naples Community Hospital has grown to encompass
approximately 422,000 square feet and include two six -story towers that house Naples Community
Hospital's 715 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 approximat ely seven miles from Naples Community Hospital, and
in several other outpatient facilities that provide urgent care, rehabilitation, wellness and infusion
services. In addition, Physician's Regional operates two hospitals within the County with a total of
201 beds.
The Collier County Health Department operates in every community in the County under the
direction of a licensed physician and with a staff of trained specialists, including public health
workers, nurses, sanitarians and clinical psychologists.]
COLLIER COUNTY
FINANCIAL AND ECONOMIC DATA
(Fiscal Years 2009-2018)
(Unaudited)
Fiscal
Year Population
Percent
Increase/(Decrease)
Per
Capita
Income
Bank
Deposits
(000's)
2009 333,032 -- $63,276 $11,690
2010 331,800 (0.4) 62,559 9,981
2011 321,520 (3.1) 60,049 N/A
2012 323,785 0.7 59,264 N/A
2013 329,849 1.9 60,391 N/A
2014 339,642 3.0 64,872 N/A
2015 348,777 2.7 73,869 N/A
2016 353,936 1.5 78,473 N/A
2017 360,846 2.0 84,101 N/A
2018
N/A = Data not currently available
Source: Collier County, Florida Finance Department.
25694/008/01436296.DOCv2 A-7
Assessed Valuation
The following table shows the assessed value and taxable value for operating millage in each of the past ten Fiscal Years.
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
IN COLLIER COUNTY(1)
(Fiscal Years 2009-2018)
(Unaudited)
(Amounts Expressed in Thousands)
Fiscal
Year
Ended
September 30
Residential
Property
Personal
Property
Centrally
Assessed
Property
Less:
Tax
Exempt
Total Taxable
Assessed
Value
Total
Direct
Tax
Rate
Estimated
Actual
Taxable
Value
Assessed
Value as a
Percentage of
Actual Value(2)
2009 $86,949,935 $2,430,996 $202 $10,718,166 $78,662,967 4.1246 $89,381,133 100%
2010 77,359,174 2,444,323 202 9,826,950 69,976,749 4.4236 79,803,699 100
2011 67,947,039 2,259,654 171 8,770,667 61,436,197 4.4151 70,206,864 100
2012 64,464,592 2,248,702 187 8,510,911 58,202,570 4.4149 66,713,481 100
2013 64,723,621 2,240,098 184 8,471,142 58,942,761 4.4126 66,963,903 100
2014 66,977,907 2,198,734 152 8,539,021 60,637,772 4.1592 69,176,193 100
2015 71,149,974 2,186,145 195 8,739,269 64,597,045 4.1582 73,336,324 100
2016 76,970,360 2,353,841 134 9,235,508 70,088,827 4.1572 79,324,335 100
2017 91,067,675 2,448,008 246 9,905,936 83,609,993 4.1562 93,515,929 100
2018
(1) Property is assessed as of January 1, and taxes based on these assessments are levied and become due on the following Novembe r 1.
Therefore, assessments and levies applicable to a certain year are collected in the fiscal year ending during the next succee ding calendar
year.
(2) The basis of assessed value required by the state is 100% of actual value.
Source: Collier County, Florida Finance Department.
25694/008/01436296.DOCv2 A-8
The following table contains the property tax rates for the last ten fiscal years.
COLLIER COUNTY, FLORIDA
PROPERTY TAX RATES – ALL DIRECT AND OVERLAPPING GOVERNMENTS(1)
(Fiscal Years 2009-2018)
(Unaudited)
Collier County Other
Fiscal
Year
General
Fund
Special
Revenue
Funds
Debt
Service
Funds
Total
County
School
District
Independent
Districts Total
2009 3.1469 0.7528 0.2249 4.1246 4.9090 1.2784 10.3120
2010 3.5645 0.7225 0.1366 4.4236 5.2390 1.3243 10.9869
2011 3.5645 0.6926 0.1580 4.4151 5.6990 1.3299 11.4440
2012 3.5645 0.7627 0.0877 4.4149 5.5270 1.2202 11.1621
2013 3.5645 0.7555 0.0926 4.4126 5.5760 1.2395 11.2281
2014 3.5645 0.5873 0.0074 4.1592 5.6900 1.2228 11.0720
2015 3.5645 0.5860 0.0077 4.1582 5.5800 1.1853 10.9235
2016 3.5645 0.5856 0.0071 4.1572 5.4800 1.1331 10.7703
2017 3.5645 0.6030 0.0293 4.1968 5.1220 1.1832 10.5020
2018
(1) Basis for property tax rates is 1 mill per $1,000 of assessed value. Property is assessed as of
January 1 and taxes based on those assessments are levied according to the tax rate in effect that
tax year and become due on November 1. Therefore, assessments and tax levies applicable to a
certain tax year are collected in the fiscal year ending during the following calendar year.
Source: Collier County, Florida Finance Department.
Property Tax Reform
Millage Rollback Legislation. In 2007, the State Legislature adopted a property tax plan which
significantly impacted ad valorem tax collections for State local governments (the "Millage Rollback
Legislation"). One component of the Millage Rollback Legislation required counties, ci ties and special
districts to rollback their millage rates for the 2007-2008 Fiscal Year to a level that, with certain
adjustments and exceptions, would generate the same level of ad valorem tax revenue as in Fiscal Year
2006-2007; provided, however, depending upon the relative growth of each local government's own ad
valorem tax revenues from 2001 to 2006, such rolled back millage rates were determined after first
reducing 2006-2007 ad valorem tax revenues by zero to nine percent (0% to 9%). In addition, the Rollback
Legislation also limited how much the aggregate amount of ad valorem tax revenues may increase in
future fiscal years. A local government may override certain portions of these requirements by a
supermajority, and for certain requirements, a unanimous vote of its governing body.
Constitutional Exemptions. Certain exemptions from property taxes have been enacted.
Constitutional exemptions include, but are not limited to, property owned by a municipality and used
exclusively by it for municipal or public purposes, certain household goods and personal effects to the
value fixed by general law, certain locally approved community and economic development ad valorem
tax exemptions to new businesses and expansions of existing businesses, as defined by general law and
25694/008/01436296.DOCv2 A-9
historic preservation ad valorem tax exemptions to owners of historic properties, $25,000 of the assessed
value of property subject to tangible personal property tax, the assessed value of solar devices or
renewable energy source devices subject to tangible personal property tax may be exempt from ad
valorem taxation, subject to limitations provided by general law, and certain real property dedicated in
perpetuity for conservation purposes, including real property encumbered by perpetual conservation
easements or by other perpetual conservation protections, as defined by general law.
Limitation on Increase in Assessed Value of Property. The State Constitution limits the increases in
assessed just value of homestead property to the lower of (1) three percent of the assessment for the prior
year or (2) the percentage change in the Consumer Price Index for all urban consumers, U.S. City
Average, all items 1967=100, or successor reports for the preceding calendar year as initially reported by
the United States Department of Labor, Bureau of Labor Statistics. The accumulated difference between
the assessed value and the just value is known as the "Save Our Homes Benefit." Further, any change of
ownership of homestead property or upon termination of homestead status such property shall be
reassessed at just value as of January 1 of the year following the year of sale or change of status; new
homestead property shall be assessed at just value as of January 1 of the year following the establishme nt
of the homestead; and changes, additions, reductions or improvements to the homestead shall initially be
assessed as provided for by general law.
Owners of homestead property may transfer up to $500,000 of their Save Our Homes Benefit to a
new homestead property purchased within two years of the sale of their previous homestead property to
which such benefit applied if the just value of the new homestead is greater than or is equal to the just
value of the prior homestead. If the just value of the new homestead is less than the just value of the prior
homestead, then owners of homestead property may transfer a proportional amount of their Save Our
Homes Benefit, such proportional amount equaling the just value of the new homestead divided by the
just value of the prior homestead multiplied by the assessed value of the prior homestead.
For all levies other than school district levies, assessment increases for specified nonhomestead
real property may not exceed ten percent (10%) of the assessment for the prior year. This assessment
limitation is, by its terms, to be repealed effective January 1, 2019; however, the legislature by joint
resolution approved an amendment abrogating such repeal, which was approved by the electors in the
November 6, 2018 general election and shall take effect January 1, 2019.
Homestead Exemptions. In addition to the exemptions described above, the State Constitution also
provides for a homestead exemption. Every person who has the legal title or beneficial title in equity to
real property in the State and who resides thereon and in good faith makes the same his or her permanent
residence or the permanent residence of others legally or naturally dependent upon such person is
eligible to receive a homestead exemption of up to $5 0,000. The first $25,000 applies to all property taxes,
including school district taxes. The additional exemption, up to $25,000, applicable to the assessed value
of the property between $50,000 and $75,000, applies to all levies other than school distri ct levies. A
person who is receiving or claiming the benefit of an ad valorem tax exemption or a tax credit in another
state where permanent residency, or residency of another legally or naturally dependent upon the owner,
is required as a basis for the granting of that ad valorem tax exemption or tax credit is not entitled to the
homestead exemption. In addition to the general homestead exemption described in this paragraph, the
following homestead exemptions are authorized by State law:
Certain Persons 65 or Older. A board of county commissioners or the governing authority of any
municipality may adopt an ordinance to allow an additional homestead exemption equal to (i) of up to
25694/008/01436296.DOCv2 A-10
$50,000 for persons age 65 or older with household income that does not exceed the statutory income
limitation of $20,000 (as increased by the percentage increase in the average cost of living index each year
since 2001) or (ii) the assessed value of the property with a just value less than $250,000, as determined
the first tax year that the owner applies and is approved, for any person 65 or older who has maintained
the residence as his or her permanent residence for not less than 25 years and whose household income
does not exceed the statutory income. The County enacted an ordinance providing for the exemption
from County ad valorem taxes described in this paragraph.
In addition, veterans 65 or older who are partially or totally permanently disabled may receive a
discount from tax on homestead property if the disability was combat related and the veteran was
honorably discharged upon separation from military service. The discount is a percentage equal to the
percentage of the veteran's permanent, service-connected disability as determined by the United States
Department of Veteran's Affairs. The County has not enacted an ordinance providing for the exemption
from County ad valorem taxes described in this paragraph.
Deployed Military Personnel. The State Constitution provides that by general law and subject to
certain conditions specified therein, each person who receives a homestead exemption who was a
member of the United States military or military reserves, the United States Coast Guard or its reserves,
or the Florida National Guard; and who was deployed during the prece ding calendar year on active duty
outside the continental United States, Alaska, or Hawaii in support of military operations designated by
the legislature shall receive an additional exemption equal to a percentage of the taxable value of his or
her homestead property. The applicable percentage shall be calculated as the number of days during the
preceding calendar year the person was deployed on active duty outside the continental United States,
Alaska, or Hawaii in support of military operations designated by the legislature divided by the number
of days in that year.
Certain Active Duty Military and Veterans. A military veteran who was honorably discharged, is a
resident of the State, and who is disabled to a degree of 10% or more because of misfortune or while
serving during wartime may be entitled to a $5,000 reduction in the assessed value of his or her property.
This exemption is not limited to homestead property. A military veteran who was honorably discharged
with a service-related total and permanent disability may be eligible for a total exemption from taxes on
homestead property. A similar exemption is available to disabled veterans confined to wheelchairs.
Under certain circumstances, the veteran's surviving spouse may be entitled to carry over these
exemptions.
Certain Totally and Permanently Disabled Persons. Real estate used and owned as a homestead by a
quadriplegic, less any portion used for commercial purposes, is exempt from all ad valorem taxation.
Real estate used and owned as a homestead by a paraplegic, hemiplegic, or other totally and permanently
disabled person, who must use a wheelchair for mobility or who is legally blind, is exempt from taxation
if the gross household income is below statutory limits.
Survivors of First Responders. Any real estate that is owned and used as a homestead by the
surviving spouse of a first responder (law enforcement officer, correctional officer, firefighter, emergency
medical technician or paramedic), who died in the line of duty may be gr anted a total exemption on
homestead property if the first responder and his or her surviving spouse were permanent residents of
the State on January 1 of the year in which the first responder died.
25694/008/01436296.DOCv2 A-11
Save Our Homes Portability Affected by Storm Damage (SOH ). Owners of homestead property that
was significantly damaged or destroyed as a result of a named tropical storm or hurricane can elect to
have the property deemed abandoned if the owner establishes a new homestead by January 1 of the
second year immediately following the storm or hurricane. This will allow the owner of the homestead
property to keep their SOH benefit if they move from the significantly damaged or destroyed property to
establish a new homestead by the end of the year following the storm.
Property Tax Relief for Natural Disasters. In light of the recent natural disasters, the state
legislature created a property tax relief credit for homestead parcels on which certain residential
improvements were damaged or destroyed by a hurricane that occurred in 2016 or 2017, namely
hurricanes Hermine, Matthew, and Irma. If the residential improvement is rendered uninhabitable for at
least 30 days due to a hurricane that occurred during the 2016 or 2017 calendar year, taxes initially levied
in 2019 may be abated. Due to this reduction in ad valorem tax revenue, the legislature is required to
appropriate funds to offset the deficit in certain taxing jurisdictions.
Recent Amendments Relating to Ad Valorem Taxation. In the 2016 legislative session, several
amendments were passed affecting ad valorem taxation, including classification of agricultural lands
during periods of eradication or quarantine, deleting requirements that conservation easements be
renewed annually, providing that just value of real property shall be determined in the first tax year for
income restricted persons age 65 or older who have maintained such property as the permanent residence
for at least 25 years, authorizing a first responder who is totally and permanently disabled as a result of
injuries sustained in the line of duty to receive relief from ad valorem taxes assessed on homestead
property, revising procedures with respect to assessments, hearings and notifications by the value
adjustment board, and revising the interest rate on unpaid ad valorem taxes.
Future Amendments Relating to Ad Valorem Taxation. Historically, various legislative proposals and
constitutional amendments relating to ad valorem taxation have been introduced in each session of the
State legislature. Many of these proposals have provided for new or increased exemptions to ad valorem
taxation and limited increases in assessed valuation of certain types of property or have otherwise
restricted the ability of local governments in the State to levy ad val orem taxes at then current levels.
Constitutional Limitations on New State Taxes and Fees
During the 2018 State legislative session, the State Legislature passed House Joint Resolution 7001
("HJR 7001"), including an amendment to the State Constitution providing that no state tax or fee may be
imposed, authorized, raised by the State Legislature, or authorized by the State Legislature to be raised,
except through legislation approved by two-thirds of the membership of each house of the Legislature.
The same requirement would apply to decreasing or eliminating any state tax, fee exemption or credit.
Previously, such actions could be approved by a majority vote. HJR 7001 also requires that any proposed
state tax or fee imposition, authorization or incre ase must be contained in a separate bill that contains no
other subject. The joint resolution specifies that the amendment does not authorize the imposition of any
state tax or fee otherwise prohibited by the State Constitution, and does not apply to any t ax or fee
imposed by, or authorized to be imposed by, a county, municipality, school board, or special district. The
amendment in the HJR 7001 was approved by at least sixty percent of the voters during the 2018 general
election and was passed and signed i nto law by Governor Scott and will take effect on January 8, 2019.
Although the legislation will not subject local taxes and fees to the stricter voting requirement, local
governments could be adversely impacted during recessionary economic environments i f State
25694/008/01436296.DOCv2 A-12
lawmakers are unable to raise taxes. The County does not expect that HJR 7001 will have an impact on its
ability to pay debt service on the Series 2019 Bonds.
Florida Retirement System
The information relating to the Florida Retirement System ("FRS") contained herein has been obtained
from the FRS Annual Reports available at www.dms.myflorida.com and the Florida Comprehensive Annual
Financial Reports available at www. myfloridacfo.com/aadir/statewide_financial_reporting. No representation is
made by the County as to the accuracy or adequacy of such information or that there has not been any material
adverse change in such information subsequent to the date of such information.
General Information. Substantially all of the County’s fire fighter employees participate in the
FRS. The FRS is a cost-sharing multiple-employer public-employee retirement system with two primary
plans – the FRS defined benefit pension plan (the "FRS Pension Plan") and the FRS defined contribution
plan (the "FRS Investment Plan"). The FRS Pension Plan was created in Chapter 121, Florida Statutes, to
provide a defined benefit pension plan for participating public employees.
Florida Retirement System Pension Plan
Membership. FRS membership is compulsory for all employees filling a regularly established
position in a state agency, county agency, state university, state community college, or district school
board. Participation by cities, municipalities, special districts, charter schools, and metropolitan planning
organizations, although optional, is generally irrevocable after election to participate is made. Members
hired into certain positions may be eligible to withdraw from the FRS altogether or elect to participate in
the non-integrated optional retirement programs in lieu of the FRS except faculty of a medical college in a
state university who must participate in the State University System Optional Retirement Program.
There are five general classes of membership, as follows:
Regular Class - Members of the FRS who do not qualify for membership in the other
classes.
Senior Management Service Class (SMSC) - Members in senior management level positions
in state and local governments as well as assistant state attorneys, assistant statewide prosecutors,
assistant public defenders, assistant attorneys general, deputy court administrators, and assistant capital
collateral representatives. Members of the Elected Officers' Class ("EOC") may elect to withdraw from
the FRS or participate in the SMSC in lieu of the EOC.
Special Risk Class - Members who are employed as law enforcement officers, firefighters,
firefighter trainers, fire prevention officers, state fixed -wing pilots for aerial firefighting surveillance,
correctional officers, emergency medical technicians, paramedics, community-based correctional
probation officers, youth custody officers (from July 1, 2001 through June 30, 2014), certain health -care
related positions within state forensic or correctional facilities, or specified forensic employees of a
medical examiner's office or a law enforcement agency, and meet the criteria to qualify for this class.
Special Risk Administrative Support Class - Former Special Risk Class members who are
transferred or reassigned to nonspecial risk law enforcement, firefighting , emergency medical care, or
correctional administrative support positions within an FRS special risk-employing agency.
25694/008/01436296.DOCv2 A-13
Elected Officers' Class (EOC) - Members who are elected state and county officers and the
elected officers of cities and special districts that choose to place their elected officials in this class.
Beginning July 1, 2001, through June 30, 2011, the FRS Pension Plan provided for vesting of
benefits after six years of creditable service for members initially enrolled during this period. Members
not actively working in a position covered by the FRS Pension Plan on July 1, 2001, must return to
covered employment for up to one work year to be eligible to vest with less service than was required
under the law in effect before July 1, 2001. Members initially enrolled on or after July 1, 2001, through
June 30, 2011, vest after six years of service. Members initially enrolled on or after July 1, 2011, vest after
eight years of creditable service. Members are eligible for normal retirement when they have met the
requirements listed below. Early retirement may be taken any time after vesting within 20 years of
normal retirement age; however, there is a 5% benefit reduction for each year prior to the normal
retirement age.
Regular Class, SMSC, and EOC Members – For members initially enrolled in the FRS
Pension Plan before July 1, 2011, six or more years of creditable service and age 62, or the age after
completing six years of creditable service if after age 62. Thirty years of creditable servic e regardless of
age before age 62. For members initially enrolled in the FRS Pension Plan on or after July 1, 2011, eight
or more years of creditable service and age 65, or the age after completing eight years of creditable
service if after age 65. Thirty-three years of creditable service regardless of age before age 65.
Special Risk Class and Special Risk Administrative Support Class Members – For members
initially enrolled in the FRS Pension Plan before July 1, 2011, six or more years of Special Risk C lass
service and age 55, or the age after completing six years of Special Risk Class service if after age 55.
Twenty-five years of special risk service regardless of age before age 55. A total of 25 years of service
including special risk service and up to four years of active duty wartime service and age 52. Without
six years of Special Risk Class service, members of the Special Risk Administrative Support Class must
meet the requirements of the Regular Class. For members initially enrolled in the FRS Pension Plan on
or after July 1, 2011, eight or more years of Special Risk Class service and age 60, or the age after
completing eight years of Special Risk Class service if after age 60. Thirty years of special risk service
regardless of age before age 60. Without eight years of Special Risk Class service, members of the
Special Risk Administrative Support Class must meet the requirements of the Regular Class.
Benefits. Benefits under the FRS Pension Plan are computed on the basis of age, average final
compensation, creditable years of service, and accrual value by membership class. Members are also
eligible for in-line-of-duty or regular disability and survivors' benefits. Pension benefits of retirees and
annuitants are increased each July 1 by a cost-of-living adjustment. If the member is initially enrolled in
the FRS Pension Plan before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual
cost-of-living adjustment is 3% per year. If the member is initially enrolled befo re July 1, 2011, and has
service credit on or after July 1, 2011, there is an individually calculated cost -of-living adjustment. The
annual cost-of-living adjustment is a proportion of 3% determined by dividing the sum of the pre -July
2011 service credit by the total service credit at retirement multiplied by 3%. FRS Pension Plan members
initially enrolled on or after July 1, 2011, will not have a cost -of-living adjustment after retirement.
The Deferred Retirement Option Program ("DROP") became effective July 1, 1998, subject to
provisions of Section 121.091(13), Florida Statutes. FRS Pension Plan members who reach normal
retirement are eligible to defer receipt of monthly benefit payments while continuing employment with
25694/008/01436296.DOCv2 A-14
an FRS employer. An employee may participate in the DROP for a maximum of 60 months. Authorized
instructional personnel may participate in the DROP for up to 36 additional months beyond their initial
60-month participation period. Monthly retirement benefits remain in the FRS Trust Fund d uring DROP
participation and accrue interest. As of June 30, 2017, the FRS Trust Fund held $2,255,747,029 in
accumulated benefits for 34,810 DROP participants. Of these 34,810 DROP participants, 32,972 were
active in the DROP with balances totaling $2,032,044,001. The remaining participants were no longer
active in the DROP and had balances totaling $216,703,029 to be processed after June 30, 2017.
Administration. The Department of Management Services, Division of Retirement administers
the FRS Pension Plan. The State Board of Administration (the "SBA") invests the assets of the FRS
Pension Plan held in the FRS Trust Fund. Costs of administering the FRS Pension Plan are funded from
earnings on investments of the FRS Trust Fund. Reporting of the FRS Pension Plan is on the accrual basis
of accounting. Revenues are recognized when earned and expenses are recognized when the obligation
is incurred.
Contributions. All participating employers must comply with statutory contribution
requirements. Section 121.031(3), Florida Statutes, requires an annual actuarial valuation of the FRS
Pension Plan, which is provided to the Legislature as guidance for funding decisions. Employer and
employee contribution rates are established in Section 121.71, Florida Statutes. Employer contribution
rates under the uniform rate structure (a blending of both the FRS Pension Plan and FRS Investment Plan
rates) are recommended by the actuary but set by the Legislature. Statutes require that any unfunded
actuarial liability ("UAL") be amortized within 30 plan years. Pursuant to Section 121.031(3)(f), Florida
Statutes, any surplus amounts available to offset total retirement system costs are to be amortized over a
10-year rolling period on a level-dollar basis. The balance of legally required reserves for all defined
benefit pension plans at June 30, 2017, was $154,053,262,968. These funds were reserved to provide for
total current and future benefits, refunds, and administration of the FRS Pension Plan.
Effective July 1, 2011, both employees and employers of the FRS are required to make
contributions to establish service credit for work performed in a regularly established position. Effective
July 1, 2002, the Florida Legislature established a uniform contribution rate syste m for the FRS, covering
both the FRS Pension Plan and the FRS Investment Plan. The uniform rates for Fiscal Year 2016 -17 are as
follows:
Membership Class
Employee
Contribution Rate
Employer
Contribution Rate(1)
Total
Contribution Rate
Regular 3.00% 5.80% 8.80%
Special Risk 3.00 20.85 23.85
Special Risk Administrative Support 3.00 26.34 29.34
Elected Officers – Judges 3.00 34.98 37.98
Elected Officers - Legislators/Attorneys/Cabinet 3.00 40.38 43.38
Elected Officers – County, City, Special Districts 3.00 40.75 43.75
Senior Management Service 3.00 20.05 23.05
Deferred Retirement Option Program N/A 11.33 11.33
(1) These rates include the normal cost and unfunded actuarial liability contributions but do not
include the 1.66% contribution for the Retiree Health Insurance Subsidy ("HIS") and the fee of
0.06% for administration of the FRS Investment Plan and provision of educational tools for both
plans.
25694/008/01436296.DOCv2 A-15
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensiv e
Annual Financial Report for Fiscal Year Ended June 30, 2017.
[The contributions of the County are established and may be amended by the State
Legislature. The County's contributions to the FRS Pension Plan totaled $454,831 for the Fiscal Year
ended September 30, 2018.]
Pension Amounts for the FRS Pension Plan.
Schedule of Changes in Net Pension Liability and Related Ratios
(in thousands)
Total Pension Liability June 30, 2015 June 30, 2016 June 30, 2017
Service cost $2,114,047 $2,132,906 $2,073,754
Interest on total pension liability 11,721,563 12,109,114 12,484,167
Effect of plan changes 0 32,310 92,185
Effect of economic/demographic (gains) or losses 1,620,863 980,192 1,412,462
Effect of assumption changes or inputs 0 1,030,667 10,398,344
Benefit payments (10,201,501) (10,624,925) (9,859,319)
Net change in total pension liability 5,254,972 5,660,264 16,601,593
Total pension liability, beginning 156,115,763 161,370,735 167,030,999
Total pension liability, ending (a) $161,370,735 $167,030,999 $183,632,592
Fiduciary Net Position
Employer contributions $2,438,085 $2,438,659 $2,603,246
Member contributions 698,304 710,717 744,839
Investment income net of investment expenses 5,523,287 820,583 18,801,917
Benefit payments (10,201,500) (10,624,925) (9,859,319)
Administrative expenses (18,074) (18,507) (18,340)
Net change in plan fiduciary net position (1,559,898) (6,673,473) 12,272,342
Fiduciary net position, beginning 150,014,292 148,454,394 141,780,921
Fiduciary net position, ending (b) $148,454,394 $141,780,921 $154,053,263
Net pension liability, ending = (a) – (b) $12,916,341 $25,250,078 $29,579,329
Fiduciary net position as a % of total pension liability 92.00% 84.88% 83.89%
Covered payroll(1) $32,726,034 $33,214,217 $33,775,800
Net pension liability as a % of covered payroll 39.47% 76.02% 87.58%
(1) For June 30, 2015, and later, covered payroll shown includes the payroll for FRS Investment Plan
members and payroll on which only UAL rates are charged.
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30, 2017.
25694/008/01436296.DOCv2 A-16
Actuarial Methods and Assumptions for the FRS Pension Plan. The total pension liability was
determined by an actuarial valuation as of the valuation date of July 1, 2017, calculated based on the
discount rate and actuarial assumptions below:
June 30, 2016 June 30, 2017
Discount rate 7.60% 7.10%
Long-term expected rate of return, net of investment expense 7.60% 7.10%
Bond Buyer General Obligation 20-Bond Municipal Bond Index N/A N/A
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30, 2017.
The plan's fiduciary net position was projected to be available to make all projected future benefit
payments of current active and inactive employees in determining the projected depletion date.
Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected
rate of return.
The actuarial assumptions used to determine the total pension liability as of June 30, 2017, were
based on the results of an actuarial experience study for the period July 1, 2008 - June 30, 2013.
Valuation Date July 1, 2017
Measurement Date June 30, 2017
Asset Valuation Method Fair Market Value
Inflation 2.60%
Salary increase including inflation 3.25%
Mortality Generational RP-2000 with Projection Scale BB
Actuarial cost method Individual Entry Age Normal
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30, 2017.
Sensitivity Analysis for the FRS Pension Plan. The following presents the net pension liability of
the FRS, calculated using the discount rate of 7.10%, as well as what the FRS's net pension liability would
be if it were calculated using a discount rate that is one percentage point lower (6.10%) or one percentage
point higher (8.10%) than the current rate.
1% Decrease
6.10%
Current Discount Rate
7.10%
1% Increase
8.10%
Total pension liability $207,590,062,000 $183,632,592,000 $163,742,403,000
Fiduciary net position 154,053,262,968 154,053,262,968 154,053,262,968
Net pension liability $53,536,799,032 $29,579,329,032 $9,689,140,032
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30, 2017 .
25694/008/01436296.DOCv2 A-17
Retiree Health Insurance Subsidy Program
The HIS Program is a cost-sharing multiple-employer defined benefit pension plan established
under Section 112.363, Florida Statutes. The benefit is a monthly payment to assist retirees of state -
administered retirement systems in paying their health insurance costs and is administered by the
Division of Retirement within the Department of Management Services. For the fiscal year ended
June 30, 2017, eligible retirees and beneficiaries received a monthly HIS payment equal to the number of
years of creditable service completed at the time of retirement multiplied by $5. The payments are at
least $30 but not more than $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible
to receive a HIS benefit, a retiree under a state-administered retirement system must provide proof of
health insurance coverage, which can include Medicare.
The HIS Program is funded by required contributions from FRS participating employers as set by
the Legislature. Employer contributions are a percentage of gross compensation for all active FRS
members. For the fiscal year ended June 30, 2017, the contribution rate was 1.66% of payroll pursuant to
Section 112.363, F.S. The State contributed 100% of its statutorily require d contributions for the current
and preceding two years. HIS contributions are deposited in a separate trust fund from which HIS
payments are authorized. HIS benefits are not guaranteed and are subject to annual legislative
appropriation. In the event the legislative appropriation or available funds fail to provide full subsidy
benefits to all participants, the legislature may reduce or cancel HIS payments.
[Remainder of page intentionally left blank]
25694/008/01436296.DOCv2 A-18
Pension Amounts for the HIS.
Schedule of Changes in Net Pension Liability and Related Ratios
(in thousands)
Total Pension Liability June 30, 2014 June 30, 2015 June 30, 2016 June 30, 2017
Service cost $190,371 $217,519 $256,710 $304,537
Interest on total pension liability 409,907 405,441 390,757 337,486
Effect of plan changes 0 0 0 0
Effect of economic/demographic (gains) or losses 0 0 (30,826) 0
Effect of assumption changes or inputs 386,383 607,698 1,352,459 (1,073,716)
Benefit payments (407,276) (425,086) (449,857) (465,980)
Net change in total pension liability 579,385 805,572 1,519,243 (897,673)
Total pension liability, beginning 8,864,244 9,443,629 10,249,201 11,768,445
Total pension liability, ending (a) $9,443,629 $10,249,201 $11,768,445 $10,870,772
Fiduciary Net Position
Employer contributions $342,566 $382,454 $512,564 $529,229
Member contributions 0 0 0 0
Investment income net of investment expenses 219 208 565 1,380
Benefit payments (407,275) (425,085) (449,857) (465,980)
Administrative expenses (54) (188) (188) (177)
Net change in plan fiduciary net position (64,544) (42,611) 63,084 64,452
Fiduciary net position, beginning 157,929 93,385 50,774 113,859
Fiduciary net position, ending (b) $93,385 $50,774 $113,859 $178,311
Net pension liability, ending = (a) – (b) $9,350,244 $10,198,427 $11,654,586 $10,692,461
Fiduciary net position as a % of total pension liability 0.99% 0.50% 0.97% 1.64%
Covered payroll $29,676,340 $30,340,449 $30,875,274 $31,885,633
Net pension liability as a % of covered payroll 31.51% 33.61% 37.75% 33.53%
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30, 2017.
Actuarial Methods and Assumptions for the HIS. The total pension liability was determined by
an actuarial valuation as of the valuation date, calculated based on the discount rate and actuarial
assumptions below, and then was projected to the measurement date. Any significant changes during
this period have been reflected as prescribed by GASB 67. The same demographic and economic
assumptions that were used in the Florida Retirement System Actuarial Valuation as of July 1, 2016
("funding valuation") were used for the HIS Program, unless otherwise noted. In a given membership
class and tier, the same assumptions for both FRS Investment Plan members and for FRS Pension Plan
members were used.
25694/008/01436296.DOCv2 A-19
June 30, 2016 June 30, 2017
Discount rate 2.85% 3.58%
Long-term expected rate of return, net of investment expense N/A N/A
Bond Buyer General Obligation 20-Bond Municipal Bond Index 2.85% 3.58%
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30, 201 7.
In general, the discount rate for calculating the total pension liability under GASB 67 is equal to
the single rate equivalent to discounting at the long-term expected rate of return for benefit payments
prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go
basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to
the municipal bond rate selected by the plan sponsor. The discount rate used in the 2017 valuation was
updated from 2.85% to 3.58%, reflecting the change in the Bond Buyer General Obligation 20 - Bond
Municipal Bond Index as of June 30, 2017.
The actuarial assumptions used to determine the total pension liability as of June 30, 2017, were
based on the results of an actuarial experience study for the period July 1, 2008 - June 30, 2013.
Valuation Date July 1, 2017
Measurement Date June 30, 2017
Inflation 2.60%
Salary increase including inflation 3.25%
Mortality Generational RP-2000 with Projection Scale BB
Actuarial cost method Individual Entry Age
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30, 2017.
Sensitivity Analysis for the HIS. The following presents the net pension liability of the HIS,
calculated using the discount rate of 3.58%, as well as what the HIS's net pension liability would be if it
were calculated using a discount rate that is one percentage point lower (2.58%) or one percentage point
higher (4.58%) than the current rate.
1% Decrease
2.58%
Current Discount Rate
3.58%
1% Increase
4.58%
Total pension liability $12,379,825,232 $10,870,772,218 $9,613,814,415
Fiduciary net position 178,310,841 178,310,841 178,310,841
Net pension liability $12,201,514,391 $10,692,461,377 $9,435,503,574
Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensive
Annual Financial Report for Fiscal Year Ended June 30, 2017.
FRS Investment Plan
The State Board of Administration administers the defined contribution plan officially titled the
FRS Investment Plan. The Florida Legislature establishes and amends the benefit terms of the plan.
Retirement benefits are based upon the value of the member's account upon retirement. The FRS
25694/008/01436296.DOCv2 A-20
Investment Plan provides vesting after one year of service regardless of membership class. If an
accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is
transferred to the FRS Investment Plan, the years of service required for vesting under the FRS Pension
Plan (including the service credit represented by the transferred funds) is required to be vested for these
funds and the earnings on the funds. The employer pays a contribution as a percentage of salary that is
deposited into the individual member's account. Effective July 1, 2011, there is a mandatory employee
contribution of 3.00%. The FRS Investment Plan member directs the investment from the option s offered
under the plan. Costs of administering the plan, including the FRS Financial Guidance Program, are
funded through an employer assessment of payroll and by forfeited benefits of plan members. After
termination and applying to receive benefits, the member may rollover vested funds to another qualified
plan, structure a periodic payment under the FRS Investment Plan, receive a lump -sum distribution, or
leave the funds invested for future distribution. Disability coverage is provided; the employer pays an
employer contribution to fund the disability benefit which is deposited in the FRS Trust Fund. The
member may either transfer the account balance to the FRS Pension Plan when approved for disability
retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the
FRS Investment Plan and rely upon that account balance for retirement income.
GASB 68/71
The Governmental Accounting Standards Board (GASB) issued Statement No. 68, "Accounting
and Financial Reporting for Pensions" – an amendment to GASB Statement No. 27, "Accounting for
Pensions by State and Local Governmental Employers", which was subsequently amended by GASB
No. 71, "Pension Transition for Contributions Made Subsequent to the Measurement Date" (co llectively,
"GASB No. 68/71"), which is effective for the County’s fiscal year ended September 30, 2016. As a
participating employer, the County implemented GASB No. 68/71, which requires an employer
participating in a cost-sharing multiple-employer defined benefit pension plans to report the employer's
proportionate share of the net pension liabilities of the defined benefit pension plans. The greatest impact
of GASB No. 68/71 to the County is the inclusion of the County's proportionate share of the FRS Net
Pension Liability (the "County's Net Pension Liability"), which reduced the County's Unrestricted Net
Position and Total Net Position. Additionally, pension expense is no longer equal to pension
contributions made, but instead is equal to the change i n net pension liability from year to year, with
adjustments for deferred amounts. The County is also now required to include more extensive footnote
disclosures and supplementary schedules.
All of these decreases are accrual based accounting changes, and do not represent decreases in
cash or liquidity positions. The County does not expect that implementation of GASB 68/71 to have any
effect on the County’s ability to pay debt service on the Series 2019 Bonds.
Multiple Employer Defined Benefit Retirement Plan
As provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost-sharing,
multiple-employer defined benefit plans administered by the Florida Department of Management
Services, Division of Retirement, including the FRS Pension Plan and HIS. Under Section 121.4501,
Florida Statutes, the FRS also provides a defined contribution plan FRS Investment Plan alternative to the
FRS Pension Plan, which is administered by the SBA. As a general rule, membership in the FRS is
compulsory for all employees working in a regularly established position for a state agency, county
government, district school board, state university, community college, or a participating city or special
district within the State of Florida. The FRS provides retirement and disability benefits, annual cost-of-
25694/008/01436296.DOCv2 A-21
living adjustments, and death benefits to plan members and beneficiaries. Benefits are established by
Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to the law
can be made only by an act of the Florida State Legislature.
The State of Florida annually issues a publicly available financial report that includes financial
statements and required supplementary information for the FRS. The latest available report may be
obtained by writing to the State of Florida Division of Retirement, Department of Management Services,
P.O. Box 9000, Tallahassee, Florida 32315-9000 or from the website:
ww.dms.myflorida.com/workforce_operations/retiremenitipublications.
Other Postemployment Benefit Plans
[General
The County provides post-employment healthcare benefits for retirees through a single
employer defined benefit plan (County's OPEB Plan) and can am end the benefits provisions. The
participants of this plan include retirees of the Board, the Clerk of the Circuit Court and Comptroller,
the Property Appraiser, the Tax Collector and the Supervisor of Elections. The Sheriff also provides
post-employment healthcare benefits under a separate plan. In accordance with Florida Statute
112.0801, employees who retire and immediately begin receiving benefits from the FRS have the
option of paying premiums to continue in the County's health insurance plan at the same group rate as
for active employees.
The Board and the Tax Collector also subsidize the cost of the post -employment healthcare for
qualifying retirees and each has the authority to amend benefit provisions. The Board offers a
subsidy for its retirees who have at least 60% of eligible accrued sick leave remaining at the time of
retirement and have completed 15 years of continuous service with the Board. In addition, the retiree
must retire from the Board, be at least 55 years of age or have completed 30 years of service under the
FRS and be eligible to receive an FRS benefit with no break in time. Such employees are eligible to
receive a 50% to 100% subsidy toward the cost of coverage under the active plan. A subsidy is
currently provided to 19 reti rees. The Tax Collector offers a subsidy of 100% the cost of health care for
employees with 10 years of service, between the ages of 54 and 64 and who exchange 800 hours of sick
leave at retirement for employees hired prior to June 1, 2015. A subsidy is currently provided to 4
retirees.
The County's OPEB Plan is currently being funded on a pay as you go basis. No trust or
agency fund has been established for the plan. The plan does not issue a separate financial report.
Participant Data
As of September 30, 2017, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 70
Active employees 2,236
Total employees 2,306
25694/008/01436296.DOCv2 A-22
Total OPEB Liability
The County's total OPEB liability of $8,833,096 was measured as of September 30, 2017 and
was determined by an actuarial valuation as of October 1, 2017. The following table shows the
changes in the County's total OPEB liability for the year ended September 30, 2017.
Total OPEB
Liability
Balance, as of October 1, 2016 $8,717,856
Changes:
Service cost 464,531
Interest on total pension liability 248,849
Differences between expected and actual experience (8,258)
Benefit payments (589,882)
Net changes 115,240
Balance, as of September 30, 2017 $8,833,096
OPEB Liability Discount Rate Sensitivity
The following presents the County's total OPEB liability, as well as what the County's total
OPEB liability would be if it were calculated using a discount rate one percentage point lo wer or one
percentage point higher than the current discount rate:
Description
1% Decrease in
Discount Rate
Current
Discount Rate
1% Increase in
Discount Rate
OPEB Plan Discount Rate 1.80% 2.80% 3.80%
Total OPEB Liability $9,347,700 $8,833,096 $8,244,203
OPEB Liability Healthcare Trend Rate Sensitivity
The following presents the County's total OPEB liability, as well as what the County's total
OPEB liability would be if it were calculated using a healthcare trend rate one percentage point lower
or one percentage point higher than the current healthcare trend rate:
Description
1% Decrease in
Healthcare Cost
Trend Rate
Healthcare Cost
Trend Rate
1% Increase in
Healthcare Cost
Trend Rate
OPEB Plan Discount Rate 4.00% 5.00% 6.00%
Total OPEB Liability $8,097,749 $8,833,096 $9,681,447
25694/008/01436296.DOCv2 A-23
For the year ended September 30, 2017, the County's OPEB expense was $713,379. In addition,
the County reported deferred inflows of resources from the following sources:
Description
Deferred
Outflows
of Resources
Deferred
Inflows
of Resources
Differences Between Expected and Actual Economic
Experience $- $8,258
Amounts reported as deferred inflows of resources related to OPEB will be amortized over
4.29 years and will be recognized as follows:
Year Ending
September 30 Amount
2018 $1,925
2019 1,925
2020 1,925
2021 1,925
Thereafter 558
Actuarial Methods and Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of e vents far into the future. Examples include
assumptions about future employment, mortality and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates
are made about the future.
Calculations for financial reporting purposes are based on the benefits provided under terms
of the plan as understood by the employer and the plan members in effect at the time of each
valuation and on the pattern of sharing of costs between the employer and plan members to that point.
The projection of benefits for financial reporting purposes does not explicitly incorporate the
potential effects of legal or contractual funding limitations on the pattern of cost sharing between the
employer and plan members in the future. Actuarial calculations reflect a long -term perspective.
Consistent with that perspective, actuarial methods and assumptio ns used include techniques that are
designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial
value of assets.
The actuarial methods are:
Actuarial cost method Entry Age Actuarial
The actuarial assumptions are:
Discount rate
Healthcare cost trend rate
Salary increase
New employees
2.8% (Based on the 20 year AA municipal bond rate)
6% decreasing to 5% in 2026 and thereafter
3%
None
25694/008/01436296.DOCv2 A-24
Mortality rates were based on the RP -2014 Mortality Fully Generational tables using
Projection Scale MP-2016.
Since the most recent GASB 45 valuation, the following changes have been made:
The actuarial cost method changed from using the Unit Credit Actuarial cost method to the
Entry Age Actuarial cost method.
The discount rate was changed from 3% to 2.8%.
The mortality assumption has been updated from RP -2014 Mortality Fully Generational using
Projection Scale MP-2014 to RP 2014 Mortality Fully Generational using Projection Scale MP -
2016.
Plan Description and Benefits Provided
The Sheriff provides post-employment healthcare benefits for retirees through a single
employer defined benefit plan (Sheriffs OPEB Plan) and can amend the benefit provisions. In
accordance with Florida Statute 112.0801, employees who retire and im mediately begin receiving
benefits from the FRS have the option of paying premiums to continue in the Sheriffs health
insurance plan at the same group rate as for active employees. No trust or agency fund has been
established for the plan. The plan does no t issue a separate financial report.
Prior to 2010, the Sheriff subsidized approximately 20% of the cost for both single and family
healthcare for its retirees who have 6 years of creditable service with the Sheriff and who receive a
monthly retirement benefit from the Florida Retirement System. Approximately 36% of retirees
receive the subsidy.
The Sheriffs OPEB Plan is currently being funded on a pay as you go basis. No trust or agency
fund has been established for the plan. The plan does not issue a se parate financial report.
Participant Data
As of September 30, 2017, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 106
Active employees 1,136
Total employees 1,242
Total OPEB Liability
The Sheriffs total OPEB liability of $18,260,466 was measured as of September 30, 2017 and
was determined by an actuarial valuation as of October 1, 2017. The following table shows the
changes in the Sheriffs total OPEB liability for the yea r ended September 30, 2017.
Total OPEB
Liability
25694/008/01436296.DOCv2 A-25
Balance, as of October 1, 2016 $18,221,385
Changes:
Service cost 491,420
Interest on total pension liability 502,621
Differences between expected and actual experience (83,607)
Benefit payments (871,353)
Net changes 39,081
Balance, as of September 30, 2017 $18,260,466
OPEB Liability Discount Rate Sensitivity
The following presents the Sheriffs total OPEB liability, as well as what the Sheriffs total
OPEB liability would be if it were calculated using a discount rate one percentage point lower or one
percentage point higher than the current discount rate:
Description
1% Decrease in
Discount Rate
Current
Discount Rate
1% Increase in
Discount Rate
OPEB Plan Discount Rate 4.00% 5.00% 6.00%
Total OPEB Liability $20,078,360 $18,260,466 $16,659,610
OPEB Liability Healthcare Trend Rate Sensitivity
The following presents the Sheriffs total OPEB liability, as well as what the Sheriffs total
OPEB liability would be if it were calculated using a healthcare trend rate one percentage point lower
or one percentage point higher than the current healthcare trend rate:
Description
1% Decrease in
Healthcare Cost
Trend Rate
Healthcare Cost
Trend Rate
1% Increase in
Healthcare Cost
Trend Rate
OPEB Plan Discount Rate 6.00% 7.00% 86.00%
Total OPEB Liability $16,554,047 $18,260,466 $20,226,456
Deferred Outflows and Inflows of Resources Related to OPEB
For the year ended September 30, 2017, the Sheriffs OPEB expense was $910,434. In addition,
the Sheriff reported deferred outflows of resources from the following sources:
Description
Deferred
Outflows
of Resources
Deferred
Inflows
of Resources
Differences Between Expected and Actual Economic
Experience $83,607 $-
25694/008/01436296.DOCv2 A-26
Amounts reported as deferred outflows of resources related to OPEB will be amortized over
7.36 years and will be recognized as follows:
Year Ending
September 30 Amount
2018 $11,360
2019 11,360
2020 11,360
2021 11,360
Thereafter 38,167
Actuarial Methods and Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality and the healthcare cos t trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates
are made about the future.
Calculations for financial reporting purposes are based on the benefits provided under terms
of the plan as understood by the employer and the plan members in effect at the time of each
valuation and on the pattern of sharing of costs between the employer and plan members to that point.
The projection of benefits for financial reporting purposes does not explicitly incorporate the
potential effects of legal or contractual funding limitations on the pattern of cost sharing between the
employer and plan members in the future. Actuarial calculations reflect a long -term perspective.
Consistent with that perspective, actuarial methods and assumptions used include techniques that are
designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial
value of assets.
The actuarial methods are:
Actuarial cost method Entry Age Actuarial
The actuarial assumptions are:
Discount rate
Healthcare cost trend rate
Salary increase
New employees
2.75% (Based on the 20 year AA municipal bond rate)
7% decreasing to 5% in 2021 and thereafter
None
None
Mortality rates were based on the RP -2015 Mortality Fully Generational tables using
Projection Scale MP-2016. Since the most recent GASB 45 valuation, the following changes have been
made:
Since the most recent GASB 45 valuation, the following changes have been made:
The actuarial cost method changed from using the Unit Credit Actuarial cost method to the
Entry Age Actuarial cost method.
25694/008/01436296.DOCv2 A-27
The discount rate was changed from 3% to 2.7 5%.
The mortality assumption has been updated from RP -2014 Mortality Fully Generational using
Projection Scale MP-2015 to RP 2015 Mortality Fully Generational using Projection Scale MP -
2016.]
25694/008/01436296.DOCv2
APPENDIX B
COMPOSITE RESOLUTION
25694/008/01436296.DOCv2
APPENDIX C
COLLIER COUNTY COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR FISCAL YEAR ENDED SEPTEMBER 30, 2018
25694/008/01436296.DOCv2
APPENDIX D
FORM OF BOND COUNSEL OPINION
25694/008/01436296.DOCv2
APPENDIX E
FORM OF CONTINUING DISCLOSURE CERTIFICATE