HomeMy WebLinkAboutItem VII (A) Discussion/Action re: Resolution No 98-14, Authorizing the Negotiated Sale of Transportation Refunding and Improvement Revenue Bonds, Series 1998TO:
FROM:
DATE:
RE:
"CENTER OF GOOD LIVING - PRIDE OF WEST ORANGE"
CITY OF OCOEE
150 N. LAKESHORE DRIvE
OCOEE, FLORIDA 34761-2258
(407)656-2322
MEMORANDUM
The Honorable Mayor and City Commissioners
Wanda B. Horton, Finance Director�bl#
September 30, 1998
Agenda 10-06-98
Item VII A
MAYOR. COMM=ONER
S. SCOTT VANDERGRIFT
CONMSSIONERS
DANNY HOWELL
SCOTT ANDERSON
SCOTT A. GLASS
NANCY J. PARKER
CITY MANAGER
ELLIS SHAPIRO
Resolution 98-14-- Authorizing the Negotiated Sale of Transportation
Refunding and Improvement Revenue Bonds, Series 1998
Resolutions 98-12 and 98-13 were adopted at the last commission meeting authorizing the
issuance of Transportation Refunding and Improvement Revenue Bonds, Series 1998.
These resolutions set forth the covenants to the bondholders and approved certain road
projects. William R. Hough & Company is currently marketing the City's Series 1998
bonds using the attached Preliminary Official Statement.
A finalized Bond Purchase Contract will be offered by William R. Hough & Company at
the October 6, 1998 commission meeting. This contract will include the final interest rates
and terms for the negotiated underwriting. Resolution 98-14 was prepared by City Bond
Council- Bryant, Miller and Olive, P.A.-, and reviewed by the City Attorney. Adoption of
the Award Resolution will approve the Bond Purchase Contract setting the actual terms for
the Series 1998 Bonds, authorize execution of the related documents, and appoint SunTrust
Equitable Securities as the Registrar and Paying Agent.
Action Requested
Based upon approval of the financial terms by staff and the financial advisor, it is
respectfully recommended that the Honorable Mayor and City Commission adopt
Resolution 98-14 and authorize the Mayor , City Clerk and other staff as indicated in the
resolution to execute any and all documents required to effect the transaction.
RESOLUTION 98-14
A RESOLUTION AUTHORIZING THE NEGOTIATED SALE OF
$ CITY OF OCOEE, FLORIDA, TRANSPORTATION
REFUNDING AND IMPROVEMENT REVENUE BONDS,
SERIES 1998; AWARDING THE SALE THEREOF TO WILLIAM
R. HOUGH & CO. AND SUNTRUST EQUITABLE SECURITIES
CORPORATION, SUBJECT TO THE TERMS AND CONDITIONS
OF A PURCHASE CONTRACT; AUTHORIZING THE
DISTRIBUTION OF A FINAL OFFICIAL STATEMENT IN
CONNECTION WITH THE DELIVERY OF THE BONDS;
APPOINTING A REGISTRAR, PAYING AGENT AND ESCROW
AGENT; PROVIDING FOR THE BONDS TO BE IN BOOK
ENTRY FORM; PROVIDING CERTAIN OTHER MATTERS IN
CONNECTION THEREWITH; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Ocoee, Florida (the "Issuer"), has by Resolution 90-08 adopted on
August 21, 1990, as amended and supplemented by Resolution 90-11 adopted on August 30, 1990
and as further amended and supplemented by Resolution 98-13, adopted on September 15, 1998
(collectively, the "Resolution"), authorized the issuance of not to exceed $19,500,000 City of Ocoee,
Florida, Transportation Refunding and Improvement Revenue Bonds, Series 1998, to finance the
refunding of the Refunded Series 1990 Bonds and the Project (as defined in the Resolution); and
WHEREAS, due to the present instability in the market for revenue obligations the interest
on which is excluded from federal gross income, the critical importance of the timing of the sale of
the Bonds, and due to the willingness of William R. Hough & Co. and SunTrust Equitable Securities
Corporation (collectively, the "Underwriter") to purchase the City of Ocoee, Florida, Transportation
Refunding and Improvement Revenue Bonds, Series 1998 (the "Series 1998 Bonds"), at interest rates
favorable to the Issuer, it is hereby determined that it is in the best interest of the public and the Issuer
to sell the Series 1998 Bonds at a negotiated sale; and
WHEREAS, the Underwriter proposes to submit an offer to purchase $,
aggregate principal amount of the Series 1998 Bonds, subject to the terms and conditions set forth
in the Bond Purchase Agreement, a copy of which is attached hereto as Exhibit A (the "Purchase
Contract"); and
WHEREAS, the Issuer now desires to sell its Series 1998 Bonds pursuant to the Purchase
Contract and in furtherance thereof to appoint a Registrar, Paying Agent and Escrow Agent and to
approve the form of and authorize distribution of a final Official Statement in connection with the
issuance of the Series 1998 Bonds; and
WHEREAS, the Issuer has been provided all applicable disclosure information required by
Section 218.385, Florida Statutes, a copy of which is attached to the Purchase Contract; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY
OF OCOEE, FLORIDA:
SECTION 1. The negotiated sale of the Series 1998 Bonds to the Underwriter is hereby
approved. The Mayor and the Clerk are hereby authorized to execute the Purchase Contract in
substantially the form attached as Exhibit A, with such additional changes, insertions and omissions
therein as may be approved by the said officers of the Issuer executing the same, such execution to
be conclusive evidence of such approval.
SECTION 2. The Series 1998 Bonds shall be issued in the aggregate principal amount of
$ , shall be dated October 1, 1998, shall be in the denomination of $5,000 or any integral
multiple thereof and shall bear interest on the dates and at the rates and shall mature on the dates, in
the years and amounts as shall be set forth in the Purchase Contract. The Series 1998 Bonds shall
be subject to redemption prior to maturity at the time and in the manner set forth in the Purchase
2
Contract. The remaining authorized but unissued principal amount of Series 1998 Bonds is hereby
cancelled.
SECTION 3. The Series 1998 Bonds shall be issued under and secured by the Resolution
on parity with the Issue's Series 1990 Bonds and shall be executed by manual or facsimile signature
of the Mayor and the City Clerk of the Issuer in substantially the form set forth in the Resolution, with
such additional changes and insertions therein as shall be approved by the officers of the Issuer
executing the same, and such execution and delivery shall be conclusive evidence of the approval
thereof by such officers.
SECTION 4. The distribution by the Underwriter of the Preliminary Official Statement is
hereby ratified. The Preliminary Official Statement has been deemed final as of its date for purposes
of Rule 15c2-12 (the "Rule) of the Securities and Exchange Commission, except for "permitted
omissions," as defined in such Rule by the Mayor which is also hereby ratified.
SECTION 5. The distribution by the Underwriter of a final Official Statement of the Issuer
relating to the Series 1998 Bonds is hereby approved in substantially the form of the Preliminary
Official Statement, together with such changes thereto as may be authorized by the Mayor. The
Official Statement will be executed by the Mayor, such execution to be conclusive evidence of
approval of the Official Statement in its final form.
SECTION 6. SunTrust Bank, Central Florida, National Association, Orlando, Florida, is
hereby appointed as Registrar and Paying Agent for the Series 1998 Bonds and as the Escrow Agent
under the Escrow Deposit Agreement.
SECTION 7. The Issuer agrees that at the written request and expense of a Holder of
$1,000,000 or more of Series 1998 Bonds, the interest due on a Series 1998 Bond may be paid by
wire transfer or other medium acceptable to the Issuer and the Holder.
3
SECTION 8. The Issuer's has executed an agreement known as the Blanket Book Entry
Agreement (the "Book Entry Agreement") with DTC, and shall make such other provision and
perform such further acts as are necessary or appropriate to provide for the distribution of the Series
1998 Bonds in book -entry form.
Neither the Issuer nor the Paying Agent will have any responsibility or obligations to the DTC
Participants, DTC Indirect Participants (as each is defined in the Book Entry Agreement) or the
beneficial owners with respect to (i) the accuracy of any records maintained by DTC or any DTC
Participant or DTC Indirect Participant; (ii) the payment by DTC or any DTC Participant or DTC
Indirect Participant of any amount due to any beneficial owner in respect of the principal amount or
redemption price of or interest on the Series 1998 Bonds; (iii) the delivery by DTC or any DTC
Participant or DTC Indirect Participant of any notice to any beneficial owner that is required or
permitted to be given to bondholders under the terms of the Indenture; (iv) the selection of the
beneficial owners to receive payment in the event of any partial redemption of the Series 1998 Bonds;
or (v) any consent given or other action taken by DTC as registered owner.
The Issuer shall issue Series 1998 Bonds directly to beneficial owners of Series 1998 Bonds
other than DTC, or its nominee, in the event that:
(1) DTC determines not to continue to act as securities depository for the Series
1998 Bonds; or
(2) The Issuer advises DTC of the Issuer's determination that DTC is incapable
of discharging its duties; or
(3) The Issuer determines that it is in its best interest not to continue the book -
entry system or that the interests of the beneficial owners of the Series 1998 Bonds might be
adversely affected if the book -entry system is continued.
21
Upon occurrence of the events described in (1) or (2) above, the Issuer shall attempt to locate
another qualified securities depository.
In the event the Issuer makes the determination noted in (3) above, or if the Issuer fails to
locate another qualified securities depository to replace DTC upon occurrence of the events described
in (1) or (2) above, the Paying Agent shall mail a notice to DTC for distribution to the beneficial
owners of the Series 1998 Bonds stating that DTC will no longer serve as securities depository,
whether a new securities depository will or can be appointed, the procedures for obtaining such Series
1998 Bonds and the provisions of this Resolution which govern the Series 1998 Bonds including, but
not limited to, provisions regarding authorized denominations, transfer and exchange, principal and
interest payment and other related matters.
SECTION 9. The Mayor, the City Manager, the City Clerk, the Finance Director, and the
City Attorney of the Issuer or any other appropriate officers of the Issuer are hereby authorized and
directed to execute any and all certifications or other instruments or documents required by the
Resolution, the Purchase Contract, this Resolution or any other document referred to above as a
prerequisite or precondition to the issuance of the Series 1998 Bonds and any such representation
made therein by officers or representatives of the Issuer shall be deemed to be made on behalf of the
Issuer. All action taken to date by the officers of the Issuer in furtherance of the issuance of the
Series 1998 Bonds is hereby approved, confirmed and ratified.
SECTION 10. All prior resolutions or other actions of the Issuer inconsistent with the
provisions of this Resolution are hereby modified, supplemented and amended to conform with the
provisions herein contained and except as otherwise modified, supplemented and amended hereby
shall remain in full force and effect.
SECTION 11. This Resolution shall take effect immediately upon its passing.
5
PASSED AND ADOPTED by the City Commission of the City of Ocoee, Florida, on this
6d' day of October, 1998.
ATTEST:
By:
Name: Jean Grafton
Title: Clerk
FOR USE AND RELIANCE ONLY
BY THE CITY OF OCOEE,
TO FORM AND LEGALITY,
THIS 6" DAY OF OCTOBER,
1998.
FOLEY & LARDNER
By:
Name: Paul Rosenthal
Title: City Attorney
BRYANT, MILLER AND OLIVE, P.A.
By:
Name: Grace E. Dunlap
Title: Bond Counsel
J.\a0rmsw203\AwREs02.wrn
Septernuer23. 1999
C-1
APPROVED:
CITY OF OCOEE, FLORIDA
By:
Name: S. Scott Vandergrift
Title: Mayor
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING
AS HELD ON OCTOBER 6th
1998 UNDER AGENDA ITEM
NO.
CITY OF OCOEE, FLORIDA
Transportation Refunding and Improvement Revenue Bonds,
Series 1998
BOND PURCHASE CONTRACT
October 1998
Mayor and Members of the
City Commission
City of Ocoee, Florida
Dear Mayor and Commission Members:
William R. Hough & Co., on behalf of itself and SunTrust Equitable Securities Corporation
(the "Underwriters") offers to enter into the following agreement with the City of Ocoee, Florida (the
"City") which, upon your acceptance of this offer, will be binding upon the City and upon the
Underwriters. This offer is made subject to your acceptance on or before 11:59 p.m., E.S.T., on the
date hereof and subject to withdrawal by the Underwriters upon notice to the City at any time prior
to the acceptance hereof by you and subject to cancellation by the Underwriters pursuant to Section
8(e) hereof. All capitalized terms not otherwise defined herein shall have the meanings set forth in
the Official Statement (as hereinafter defined).
1. Purchase and Sale. Upon the terms and conditions and upon the basis of the
representations and agreements set forth herein, the Underwriters hereby agree to purchase from the
City for offering to the public and the City hereby agrees to sell and deliver to the Underwriters for
such purpose, all (but not less than all) of the City's $ aggregate principal amount of
Transportation Refunding and Improvement Revenue Bonds, Series 1998 (the "Series 1998 Bonds").
The Series 1998 Bonds shall be dated as of October 1, 1998, shall be issued in such principal
amounts, bear such rates of interest and mature as set forth in Exhibit "A" attached hereto. Interest
on the Series 1998 Bonds shall be payable semi-annually beginning on April 1, 1999, and on each
October 1 and April 1 thereafter to maturity or earlier redemption. The aggregate purchase price of
the Series 1998 Bonds shall be $ (which takes into account an original issue discount
of $ and an Underwriters' discount of $ ), plus accrued interest on the
Series 1998 Bonds from October 1, 1998 to the date of Closing (as hereinafter defined). The Series
1998 Bonds initially shall be offered to the public at such prices or yields (including discounts) as
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September 29, 1998
indicated on Exhibit "A" attached hereto. The Series 1998 Bonds shall be issued pursuant to and
under the authority of, Chapter 166, Part II, Florida Statutes and other applicable provisions of law
(collectively, the "Act"), the Charter of the City of Ocoee and under and pursuant to Resolution
No. 90-08, adopted by the City Commission of the City on August 21, 1990, as amended and
supplemented, from time to time, and as specifically amended and supplemented by Resolution
No. 98-13, adopted by the City Commission of the City on September 15, 1998 (collectively, the
"Resolution"). The Series 1998 Bonds will be payable solely from, and secured by, a pledge of and
lien on the Pledged Funds (as defined in the Resolution). The Series 1998 Bonds are being issued
to provide funds sufficient, together with other available funds of the City, to: (a) refund a portion
of the City's Transportation Refunding and Improvement Revenue Bonds, Series 1990, currently
outstanding in the aggregate principal amount of $6,215,000 (the "Series 1990 Bonds"), (b) finance
the Project, consisting of the acquisition of rights-of-way and the design, construction, paving and
improvement of certain roads and related drainage improvements within the City, (c) acquire a surety
bond in an amount equal to the Reserve Requirement for the Series 1998 Bonds for deposit into a
special subaccount in the Reserve Account established for the benefit of the Series 1998 Bonds, and
(d) pay costs of issuance of the Series 1998 Bonds, including the municipal bond insurance policy
premium.
2. Good Faith Deposit. Delivered to you herewith, as a good faith deposit, is a
corporate check of the Underwriters payable to the order of the City in the amount of $
as security for the performance by the Underwriters of their obligation to accept and pay for the
Series 1998 Bonds at Closing (as defined herein) in accordance with the provisions hereof. In the
event that you accept this offer, said check shall be held uncashed by the City as a good faith deposit.
At the Closing, the check will be returned to the Underwriters. In the event you do not accept this
offer, the check shall be immediately returned to the Underwriters. If the Underwriters fail (other
than for a reason permitted hereunder) to accept and pay for the Series 1998 Bonds at the Closing
as provided herein, the check may be cashed by you and the proceeds retained by the City as and for
full liquidated damages for such failure and for any and all defaults hereunder on the part of the
Underwriters, and the retention of such amounts shall constitute a full release and discharge of all
claims and damages for such failure and for any and all such defaults hereunder on the part of the
Underwriters.
In the event that the City fails to deliver the Series 1998 Bonds at the Closing, or if the City
is unable at or prior to the date of Closing to satisfy or cause to be satisfied the conditions to the
obligations of the Underwriters contained in this Bond Purchase Contract, or if the obligations of the
Underwriters contained herein shall be canceled or terminated for any reason permitted by this Bond
Purchase Contract, the City shall be obligated to immediately return the check to the Underwriters.
3. Offering. It shall be a condition of your obligation to sell and deliver the Series 1998
Bonds to the Underwriters, and the obligation of the Underwriters to purchase and accept delivery
of the Series 1998 Bonds, that the entire aggregate principal amount of the Series 1998 Bonds shall
be sold and delivered by you and accepted and paid for by the Underwriters at the Closing.
2 September 29, 1998
The Underwriters agree to make a public offering of all of the Series 1998 Bonds at the initial
offering prices (or yields) set forth in Exhibit "A" attached hereto; provided, however, the
Underwriters reserve the right to make concessions to dealers and to change such initial offering
prices as the Underwriters shall deem necessary in connection with the marketing of the Series 1998
Bonds.
4. Preliminary Official Statement and Official Statement. The City hereby confirms
that it has heretofore made available to the Underwriters a Preliminary Official Statement of the City
relating to the Series 1998 Bonds, dated September 24, 1998 (which, together with the cover page
and appendices contained therein, is herein called the "Preliminary Official Statement"), and
authorizes and ratifies the use and distribution thereof to prospective purchasers and investors.
Within seven business days of the acceptance hereof by the City (or such shorter period of time to
allow the Underwriters to comply with any rules of the Municipal Securities Rulemaking Board),
the City shall cause to be delivered the final Official Statement, dated the date hereof (which,
together with the cover page and appendices contained therein, is herein called the "Official
Statement"), executed on behalf of the City by its Mayor in such reasonable numbers of conformed
copies as the Underwriters shall request, which shall be sufficient in number to comply with
paragraph (b)(3) of Rule 15c2-12 of the Securities and Exchange Commission
(17 CFR §240.15c2-12) under the Securities Exchange Act of 1934 and with Rule G-32 and all other
applicable rules of the Municipal Securities Rulemaking Board. The City, by its acceptance hereof,
ratifies and approves the Preliminary Official Statement and the Underwriters' use thereof, and
ratifies and approves and authorizes the Underwriters to use the Official Statement and all
documents described therein in connection with the public offering and the sale of the Series 1998
Bonds.
In accordance with Section 218.385, Florida Statutes, the Underwriters hereby disclose the
information required by such Section, including a truth -in -bonding statement, as provided in
Exhibit "B" attached hereto.
5. Use of Documents. You hereby authorize the use by the Underwriters of (a) the
Resolution, (b) the Preliminary Official Statement, (c) the Official Statement (including any
supplements or amendments thereto), (d) Ordinance No. 330 of the City, dated December 20, 1955
and Ordinance No. 542 of the City dated October 19, 1971, (e) the Interlocal Agreement dated
April 8, 1997, and (f) any other documents related to the transactions contemplated in the Official
Statement in connection with the public offering, sale and distribution of the Series 1998 Bonds.
6. Representations and Agreements. The City hereby represents and agrees as
follows:
(a) As of the date of the Official Statement and at the time of Closing, the
statements and information contained in the Official Statement will be true, correct and
complete in all material respects and the Official Statement will not omit any statement or
information which should be included therein for the purposes for which the Official
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3 September 29, 1998
Statement is to be used or which is necessary to make the statements or information
contained therein, in light of the circumstances under which they were made, not misleading;
provided, however, that no representation is made regarding the municipal bond insurance
policy or any related information.
(b) Between the date of this Bond Purchase Contract and the time of Closing, the
City will not execute any bonds, notes or obligations for borrowed money (other than the
Series 1998 Bonds or obligations which pledge neither the full faith and credit of the City
nor any portion of the Pledged Funds), without giving prior written notice thereof to the
Underwriters.
(c) The City is, and will be at the date of Closing, duly organized and validly
existing as a municipal corporation of the State of Florida, with the powers and authority set
forth in the Act.
(d) The City has, and will have at the date of Closing full legal right, power and
authority to: (i) enter into this Bond Purchase Contract, (ii) adopt the Resolution, (iii) sell,
issue and deliver the Series 1998 Bonds to the Underwriters as provided herein, (iv) acquire
and construct the Project, and (v) carry out and consummate the transactions contemplated
by this Bond Purchase Contract, the Resolution and the Official Statement; and the City has
complied, and at the Closing will be in compliance, in all respects, with the terms of the Act
and with the applicable obligations on its part in connection with the issuance of the Series
1998 Bonds contained in the Resolution, the Series 1998 Bonds and this Bond Purchase
Contract.
(e) By all necessary official action, the City has duly adopted the Resolution, has
duly authorized and approved the Official Statement, has duly authorized the acquisition and
construction of the Project, has duly authorized and approved the execution and delivery of,
and the performance by the City of this Bond Purchase Contract and all other obligations on
its part in connection with the issuance of the Series 1998 Bonds and the consummation by
it of all other transactions contemplated by this Bond Purchase Contract in connection with
the issuance of the Series 1998 Bonds; upon delivery of the Series 1998 Bonds, the
Resolution will constitute a legal, valid and binding special obligation of the City,
enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, and
similar laws affecting creditors' rights generally and subject, as to enforceability, to general
principles of equity.
(f) When delivered to and paid for by the Underwriters at the Closing in
accordance with the provisions of this Bond Purchase Contract, the Series 1998 Bonds will
have been duly authorized, executed, issued and delivered and will constitute valid and
binding special obligations of the City in conformity with the Act and the Resolution, and
shall be entitled to the benefits of the Resolution, including a prior pledge of and lien upon
the Pledged Funds, all in accordance with the provisions of the Resolution, subject to
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4 September 29, 1998
bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting
creditors' rights generally and subject, as to enforceability, to general principles of equity.
(g) The adoption of the Resolution and the authorization, execution and delivery
of this Bond Purchase Contract and the Series 1998 Bonds, and compliance with the
provisions hereof and thereof, will not conflict with, or constitute a breach of or default under
any law, administrative regulation, consent decree, ordinance, resolution or any agreement
or other instrument to which the City was or is subject, as the case may be, nor will such
adoption, execution, delivery, authorization or compliance result in the creation or imposition
of any lien, charge or other security interest or encumbrance of any nature whatsoever upon
the Project or any of the other property or assets of the City, or under the terms of any law,
administrative regulation, ordinance, resolution or instrument, except as expressly provided
by the Resolution or the Series 1998 Bonds.
(h) At the time of Closing, the City will be in compliance in all respects with the
applicable covenants and agreements contained in the Resolution; and no event of default
and no event which, with the lapse of time or giving of notice, or both, would constitute an -
event of default under the Resolution will have occurred or be continuing.
(i) Except as provided in the Official Statement, and except for certain permits
relating to the Project to be obtained subsequent to the date of this Bond Purchase Contract,
all approvals, consents, authorizations and orders of any governmental authority or agency
having jurisdiction in any matter which would constitute a condition precedent to the
performance by the City of its obligations hereunder or under the Resolution have been
obtained and are in full force and effect.
0) The City is lawfully empowered to pledge and grant a lien upon the Pledged
Funds.
(k) Except as disclosed in the Official Statement, to the best knowledge of the
City, as of the date hereof, there is no action, suit, proceeding, inquiry or investigation, at law
or in equity, before or by any court, government agency, public board or body, pending or
threatened against the City, affecting or seeking to prohibit, restrain or enjoin the sale,
issuance or delivery of the Series 1998 Bonds or the pledge of and lien on the Pledged Funds,
or contesting or affecting the validity or enforceability in any respect relating to the Series
1998 Bonds, the Resolution or this Bond Purchase Contract, or contesting the tax-exempt
status of interest on the Series 1998 Bonds, or contesting the completeness or accuracy of the
Official Statement or any supplement or amendment thereto, or contesting the powers of the
City, the Commission or any authority for the issuance of the Series 1998 Bonds, the
adoption of the Resolution or the execution and delivery by the City of this Bond Purchase
Contract.
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S September 29, 1998
0) The City will furnish such information, execute such instruments and take
such other action in cooperation with the Underwriters as the Underwriters may reasonably
request in order to (i) qualify the Series 1998 Bonds for offer and sale under the "blue sky"
or other securities laws and regulations of such states and other jurisdictions of the United
States as the Underwriters may designate and (ii) determine the eligibility of the Series 1998
Bonds for investment under the laws of such states and other jurisdictions, and will use its
best efforts to continue such qualifications in effect so long as required for the distribution
of the Series 1998 Bonds; provided, however, that the City shall not be required to execute
a general or special consent to service of process or qualify to do business in connection with
any such qualification or determination in any jurisdiction or expend its own funds with
respect to the foregoing.
(m) The City will not take or omit to take any action, which action or omission
will in any way cause the proceeds from the sale of the Series 1998 Bonds to be applied in
a manner contrary to that provided for in the Resolution and as described in the Official
Statement.
(n) Except as expressly disclosed in the Official Statement, the City neither is nor
has been in default any time after December 31, 1975, as to payment of principal or interest
with respect to an obligation issued or guaranteed by the City.
(o) The City has not been notified of any listing or proposed listing by the Internal
Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not
be relied upon.
(p) As of its date, the Preliminary Official Statement is hereby deemed "final' by
the City for purposes of SEC Rule 15c2 -12(b)(1), except for "permitted omissions" as
defined in such Rule.
(q) If, after the date of this Bond Purchase Contract and until the earlier of (i) 90
days from the end of the "underwriting period" (as defined in SEC Rule 15c2-12) or (ii) the
time when the Official Statement is available to any person from a nationally recognized
repository, but in no case less than 25 days following the end of the underwriting period, any
event shall occur which might or would cause the Official Statement, as then supplemented
or amended, to contain any untrue statement of a material fact or to omit to state a material
fact necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading, the City shall notify the Underwriters thereof, and, if in the
reasonable opinion of the Underwriters such event requires the preparation and publication
of a supplement or amendment to the Official Statement, the City will at its own expense
forthwith prepare and Punish to the Underwriters a sufficient number of copies of an
amendment of or supplement to the Official Statement (in form and substance satisfactory
to counsel to the Underwriters) which will supplement or amend the Official Statement so
that it will not contain an untrue statement of a material fact or omit to state a material fact
6 September 29, 1998
necessary in order to make the statements therein, in light of the circumstances existing at
such time, not misleading.
(r) The City shall comply in all respects with the continuing disclosure
requirements of Rule 15c2-12 promulgated under the Securities Exchange Act of 1934, as
set forth in the Official Statement and the Resolution.
7. Closing. At 12:00 P.M., E.S.T., on October 1998, or at such time on such earlier
or later date as shall be agreed upon, you will deliver to the Underwriters, at the location and place
to be agreed upon by you and the Underwriters, the Series 1998 Bonds in definitive form, duly
executed, together with the other documents herein mentioned; and the Underwriters will accept
such delivery and pay at such location as may be agreed upon by you and the Underwriters the
purchase price of the Series 1998 Bonds as set forth in Section 1 hereof, plus accrued interest on the
Series 1998 Bonds from October 1998, by immediately available funds, payable to the order of
the City. This delivery and payment is herein called the "Closing." The Series 1998 Bonds shall be
made available to the Underwriters at least one business day before the Closing for purposes of
inspecting and packaging. The Series 1998 Bonds shall be prepared and delivered as fully registered
Bonds.
8. Closing Conditions. The Underwriters have entered into this Bond Purchase
Contract in reliance upon the representations and warranties of the City herein contained and the
performance by the City of its obligations hereunder, both as of the date hereof and as of the time
of Closing. The obligations of the Underwriters under this Bond Purchase Contract are and shall be
subject to the following conditions:
(a) The representations and agreements of the City contained herein shall be true
and correct and complied with as of the date hereof and as of the date of the Closing, as if
made on the date of the Closing.
(b) At the time of the Closing, the Resolution shall be in full force and effect in
accordance with its respective terms and shall not have been amended, modified or
supplemented except as amended, modified or supplemented by a resolution or ordinance
incorporating the terms of the Series 1998 Bonds and the terms and conditions contained in
the municipal bond insurance commitment of the Insurer (as defined herein), and the Official
Statement shall not have been supplemented or amended, except in any such case as may
have been agreed to by the Underwriters.
(c) At the time of Closing, a resolution or ordinance of the City incorporating the
terms of the Series 1998 Bonds (or setting forth the parameters under which the Series 1998
Bonds may be sold to the Underwriters) and the terms and conditions contained in the
municipal bond insurance commitment of the Insurer shall have been duly adopted by the
City Commission.
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_ September 29, 1998
(d) At the time of the Closing, all official action of the City relating to this Bond
Purchase Contract and the Series 1998 Bonds shall be in full force and effect in accordance
with their respective terms and shall not have been amended, modified or supplemented in
any material respect, except in each case as may have been agreed to by the Underwriters.
(e) The Underwriters shall have the right to cancel the agreement contained
herein to purchase, to accept delivery of and to pay for the Series 1998 Bonds by notifying
you in writing of their intention to do so if-
(i)
f
(i) between the date hereof and the Closing, legislation shall have been
enacted by the Congress of the United States, or recommended to the Congress for
passage by the President of the United States, or favorably reported for passage to
either House of Congress by any Committee of such House, or passed by either
House of Congress, or a decision shall have been rendered by a court of the United
States or the United States Tax Court, or a ruling shall have been made or a
regulation shall have been proposed or made by the Treasury Department of the
United States or the Internal Revenue Service, with respect to the federal taxation of
interest received on obligations of the general character of the Series 1998 Bonds,
which, in the opinion of counsel for the Underwriters has, or will have, the effect of
making such interest subject to inclusion in gross income for purposes of federal
income taxation, except to the extent such interest shall be includable in gross
income on the date hereof, or
(ii) between the date hereof and the Closing, legislation shall be enacted
or any action shall be taken by the Securities and Exchange Commission which, in
the opinion of counsel for the Underwriters, has the effect of requiring the
contemplated issuance or distribution of the Series 1998 Bonds to be registered under
the Securities Act of 1933, as amended, or of requiring any of the Resolution to be
qualified under the Trust Indenture Act of 1939, as amended, or
(iii) an event described in paragraph (q) of Section 6 hereof shall have
occurred which requires an amendment or supplement to the Official Statement and
which, in the reasonable opinion of the Underwriters and the financial advisor to the
City, materially adversely affects the marketability of the Series 1998 Bonds or the
market price thereof, or
(iv) in the reasonable opinion of the Underwriters and the financial advisor
to the City, payment for and delivery of the Series 1998 Bonds is rendered
impracticable or inadvisable because (A) trading in securities generally shall have
been suspended on the New York Stock Exchange, Inc., or (B) a general banking
moratorium shall have been established by Federal, New York or Florida authorities,
or (C) the engagement of the United States in a war or other hostilities or the threat
of war or other hostilities, or
g Q:\03198\Bpa.2.wpd
September 29, 1998
(v) an order, decree or injunction of any court of competent jurisdiction,
or any order, ruling, regulation or administrative proceeding by any governmental
body or board having jurisdiction of the subject matter, shall have been issued or
commenced, or any legislation enacted, with the purpose or effect of prohibiting the
issuance, offering or sale of the Series 1998 Bonds as contemplated hereby or by the
Official Statement or prohibiting the adoption of the Resolution or the performance
thereof, or
(vi) between the date hereof and the Closing, the City has, without the
prior written consent of the Underwriters, offered or issued any bonds, notes or other
obligations for borrowed money, or incurred any material liabilities, direct or
contingent, other than as described in the Official Statement, in either case payable
from the full faith and credit of the City or any portion of the Pledged Funds, or
(vii) the President of the United States, the Office of Management and
Budget, the Department of Treasury, the Internal Revenue Service or any other
governmental body, department, agency or commission of the United States or the
State of Florida having jurisdiction of the subject matter shall take or propose to take
any action or implement or propose regulations, rules or legislation which, in the
reasonable judgment of the Underwriters, materially adversely affects the market
price of the Series 1998 Bonds or causes any material information in the Official
Statement, in light of the circumstances under which it appears, to be misleading in
any material respect, or
(viii) any executive order shall be announced, or any legislation, ordinance,
rule or regulation shall be proposed by or introduced in, or be enacted by any
governmental body, department, agency or commission of the United States or the
State of Florida or the State of New York, having jurisdiction over the subject matter,
or a decision by any court of competent jurisdiction within the United States or
within the State of Florida or the State of New York shall be rendered which, in the
reasonable judgment of the Underwriters, materially adversely affects the market
price of the Series 1998 Bonds or causes any information in the Official Statement
to be misleading in any material respect, or
(ix) prior to Closing, either (A) Standard & Poor's Ratings Group and
Fitch IBCA, Inc. shall inform the City or the Underwriters that the Series 1998 Bonds
will not be rated at least "AAA" and "AAA," respectively, or (B) MBIA Insurance
Corporation (the "Insurer") shall inform the Underwriters or the City that it shall not
deliver its municipal bond insurance policy (the "Policy") at the time of Closing, or
(x) the rating of any class of security of the City shall have been
downgraded or withdrawn by a national credit rating service.
Q:\03198\Bpa2.wpd
9 September 29, 1998
(f) At or prior to the date of the Closing, the Underwriters shall receive the
following documents:
(i) The Resolution certified by the City Clerk under seal as having been
duly adopted by the City and as being in effect, with only such supplements,
modifications or amendments as may have been agreed to by the Underwriters.
(ii) Fully executed counterparts of the Official Statement and copies of
conformed Official Statements sufficient to satisfy the requirements of Section 4
hereof.
(iii) A final approving opinion of Bryant, Miller & Olive, P.A., Bond
Counsel to the City, addressed to the City, dated the date of the Closing, in
substantially the form included in the Official Statement as Appendix D.
(iv) A letter of Bryant, Miller & Olive, P.A., addressed to the
Underwriters, and dated the date of Closing, to the effect that their final approving
opinion referred to in Section 8(f)(iii) hereof may be relied upon by the Underwriters
and the Insurer to the same extent as if such opinion were addressed to the
Underwriters and the Insurer.
(v) A supplemental opinion of Bryant, Miller & Olive, P.A., addressed
to the City and the Underwriters, and dated the date of Closing, to the effect that
(A) the information set forth in the Official Statement under the headings,
"INTRODUCTION," "SECURITY AND SOURCES OF PAYMENT FOR THE
SERIES 1998 BONDS," "THE SERIES 1998 BONDS," "TAX EXEMPTION,"
"CONTINUING DISCLOSURE," and in "APPENDIX C - COPY OF THE
RESOLUTION' (other than the financial, statistical and/or demographic information
and information concerning the City, the Insurer and the Policy included therein as
to which no opinion need be expressed), insofar as such information purports to be
descriptions or summaries of the Act, the Resolution, the Series 1998 Bonds, or the
laws referred to therein, constitute accurate and fair statements or summaries of the
matters set forth or the documents referred to therein, and the information under the
heading "TAX EXEMPTION' and in APPENDIX C is correct; and (B) the Series
1998 Bonds are exempt from registration under the Securities Act of 1933, as
amended, and the Resolution is exempt from qualification as an indenture under the
Trust Indenture Act of 1939, as amended.
(vi) An opinion of Foley & Lardner, Counsel to the City, addressed to the
City, the Insurer and the Underwriters, and dated the date of the Closing, in such
form and substance acceptable to the Underwriters and Counsel to the Underwriters.
Q:\03198\Bpa2.wpd
10 September 29, 1998
(vii) A certificate, which shall be true and correct at the time of Closing,
signed by the Mayor and the City Manager of the City or such other officials
satisfactory to the Underwriters, and in form and substance satisfactory to the
Underwriters, to the effect that, to the best of their knowledge and belief (A) the
representations and covenants of the City contained herein are true and correct in all
material respects and are complied with as of the time of Closing and (B) the Official
Statement did not as of its date, and does not as of the date of Closing, contain any
untrue statement of a material fact or omit to state a material fact which should be
included therein for the purposes for which the Official Statement is to be used, or
which is necessary in order to make the statements contained therein, in light of the
circumstances in which they were made, not misleading (provided, that no opinion
need be expressed regarding the information contained therein relating to the Insurer
or the Policy).
(viii) An opinion of Nabors, Giblin & Nickerson, P.A., Counsel to the
Underwriters, addressed to the Underwriters, and dated the date of Closing,
substantially to the effect that, with respect to the information in the Official
Statement and based upon said firm's participation in the preparation of the Official
Statement as counsel to the Underwriters and without having undertaken to
determine independently the accuracy or completeness of the contents of the Official
Statement, said firm has no reason to believe that the Official Statement (except for
the financial and statistical data contained therein, the information therein relating to
the Insurer or the Policy, and Appendices A, B, C, E, F and thereto, as to which no
view need be expressed) contains an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the statements
made therein, in light of the circumstances under which they were made, not
misleading.
(ix) A certificate of an authorized representative of SunTrust Bank,
Central Florida, National Association (the "Bank"), as Registrar, Paying Agent and
Escrow Agent to the effect that (A) the Bank is a national bank duly organized,
validly existing and in good standing under the laws of the United States of America
and is duly authorized to exercise trust powers in the State of Florida, (B) the Bank
has all requisite authority, power, licenses, permits and franchises, and has full
corporate power and legal authority to execute and perform its functions under the
Resolution, (C) the performance by the Bank of its functions under the Resolution
will not result in any violation of the Articles of Association or Bylaws of the Bank,
any court order to which the Bank is subject or any agreement, indenture or other
obligation or instrument to which the Bank is a party or by which the Bank is bound,
and no approval or other action by any governmental authority or agency having
supervisory authority over the Bank is required to be obtained by the Bank in order
to perform its functions under the Resolution and (D) to the best of such authorized
Representative's knowledge, there is no action, suit, proceeding or investigation at
Q:\03198\Bpa2.wpd
11 September 29, 1998
law or in equity before any court, public board or body pending or, to his or her
knowledge, threatened against or affecting the Bank wherein an unfavorable decision,
ruling or finding on an issue raised by any party thereto is likely to materially and
adversely affect the ability of the Bank to perform its obligations under the
Resolution.
(x) A copy of the Comprehensive Annual Financial Report for the Fiscal
Year ended September 30,1997, together with the audit opinion of McDirmit, Davis,
Lauteria, Puckett, Vogel & Company, P.A., independent accountants.
(xi) The Verification Report of McGladrey & Pullen, LLP, Minneapolis,
Minnesota regarding, among other things, the accuracy of the arithmetical
computations of the adequacy of the maturing principal and interest earned on the
Federal Securities (as defined in the Escrow Deposit Agreement) to pay when due,
the principal of, premium, if any, and interest on the Refunded Bonds.
(xii) The Policy and Surety Bond issued by the Insurer.
(xiii) A letter from McDirmit, Davis, Lauteria, Puckett, Vogel & Company,
P.A. to the effect that they are independent certified public accountants engaged by
the City and they consent to the use of their name and report in the Official
Statement;
(xiv) A certificate of an officer of the Insurer dated the date of the Closing
and addressed to the Underwriters, concerning the Insurer, the Policy, and the
information relating to the Insurer and the Policy contained in the Official Statement,
in form and substance satisfactory to Bond Counsel, the Underwriters and counsel
to the Underwriters.
(xv) A certificate of the Mayor or the City Manager deeming the
Preliminary Official Statement "final" as of its date for purposes of Rule 15c2-12;
(xvi) A letter of Standard & Poor's Ratings Group to the effect that the
Series 1998 Bonds have been assigned a rating no less favorable than "AAA" and
a letter of Fitch IBCA, Inc. to the effect that the Series 1998 Bonds have been
assigned a rating no less favorable than "AAA," each of which such ratings shall be
in effect as of the date of Closing;
(xvii) A certificate of First Union Capital Markets, a division of Wheat First
Securities substantially to the effect that with respect to the information in the
Official Statement and based upon their review of the Official Statement as Financial
Advisor to the City and without having undertaken to determine independently the
accuracy or completeness of the contents of the Official Statement, said firm has no
12 Q:\03198\Bpa2.wpd
September 29, 1998
reason to believe that the Official Statement (except for the information therein
relating to the Insurer or the Policy, and the Appendices thereto, as to which no view
need be expressed) contains an untrue statement of a material fact or omits to state
a material fact required to be stated therein or necessary to make the statements made
therein, in light of the circumstances under which they were made, not misleading.
(xviii) The statement of an independent certified public accountant required
pursuant to Section 18.D. of the Resolution.
(xix) Such additional legal opinions, certificates, instruments and other
documents as the Underwriters may reasonably request to evidence the truth and
accuracy, as of the date hereof and as of the date of the Closing, of the City's
representations and warranties contained herein and of the statements and
information contained in the Official Statement and the due performance or
satisfaction by the City on or prior to the date of Closing of all the agreements then
to be performed and conditions then to be satisfied by it.
If the City shall be unable to satisfy the conditions to the obligations of the Underwriters to
purchase, to accept delivery of and to pay for the Series 1998 Bonds contained in this Bond Purchase
Contract and the Underwriters do not waive such inability in writing, or if the obligations of the
Underwriters to purchase, to accept delivery of and to pay for the Series 1998 Bonds shall be
terminated for any reason permitted by this Bond Purchase Contract, this Bond Purchase Contract
shall terminate, the good faith deposit described in Section 2 hereof shall be returned to the
Underwriters and neither the Underwriters nor the City shall be under any further obligation
hereunder, except that the respective obligations of the City and the Underwriters set forth in
Section 9 hereof shall continue in full force and effect.
9. Expenses. The Underwriters shall be under no obligation to pay, and the City shall
pay any expense incident to the performance of the City's obligations hereunder, including, but not
limited to: (a) the cost of preparation, printing and delivery of the Resolution; (b) the cost of
preparation and printing of the Series 1998 Bonds; (c) the fees and disbursements of Bond Counsel;
(d) the fees and disbursements of the City's certified public accountants; (e) the fees and
disbursements of any experts, consultants or advisors retained by the City; (f) fees for bond ratings;
(g) the fees and expenses of the Registrar, the Paying Agent; and (h) the costs of preparing, printing
and delivering the Preliminary Official Statement and the Official Statement and any supplements
or amendments thereto.
The Underwriters shall pay: (a) the cost of preparing, printing and delivery of this Bond
Purchase Contract; (b) the cost of all "blue sky" and legal investment memoranda and related filing
fees; (c) the fees and expenses of counsel to the Underwriters; (d) all advertising expenses; and
(e) all other expenses incurred by them or any of them in connection with the public offering of the
Series 1998 Bonds. In the event that either party shall have paid obligations of the other as set forth
in this Section 9, adjustment shall be made at the time of the Closing.
13 September 29, 1998
10. Notices. Any notice or other communication to be given to you under this Bond
Purchase Contract may be given by mailing the same to City of Ocoee, Florida, 150 North Lakeshore
Drive, Ocoee, Florida 34761, to the attention of the City Manager, and any such notice or other
communication to be given to the Underwriters may be mailed to William R. Hough & Co., 100
Second Avenue South, Suite 800, St. Petersburg, Florida 3370-4386, to the attention of Ms. Julie
Santamaria.
11. Parties in Interest. This Bond Purchase Contract is made solely for the benefit of
the City and the Underwriters and no other party or person shall acquire or have any right hereunder
or by virtue hereof. All your representations and agreements in this Bond Purchase Contract shall
remain operative and in full force and effect and shall survive the delivery of the Series 1998 Bonds.
12. Waiver. Notwithstanding any provision herein to the contrary, the performance of
any and all obligations of the City hereunder and the performance of any and all conditions contained
herein for the benefit of the Underwriters may be waived by the Underwriters, in their sole
discretion, and the approval of the Underwriters when required hereunder or the determination of
their satisfaction as to any document referred to herein shall be in writing, signed by an appropriate
officer or officers of the Underwriters and delivered to you.
13. No Liability. Neither the City Commissioner, nor any of the members thereof, nor
any officer, agent or employee thereof, shall be charged personally by the Underwriters with any
liability, or held liable to the Underwriters under any term or provision of this Bond Purchase
Contract because of its execution or attempted execution, or because of any breach or attempted or
alleged breach thereof.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
14 September 29, 1998
14. Governing Law. This Bond Purchase Contract, and the terms and conditions herein,
shall constitute the full and complete agreement between the City and the Underwriters with respect
to the purchase and sale of the Series 1998 Bonds. This Bond Purchase Contract shall be governed
by and construed in accordance with the laws of the State of Florida.
(SEAL)
ATTEST:
Jean Grafton, City Clerk
FOR USE AND RELIANCE ONLY THE
CITY OF OCOEE, FLORIDA APPROVED
AS TO FORM AND LEGALITY THIS
DAY OF , 1998.
Foley & Lardner
By:
City Attorney
Very truly yours,
WILLIAM R. HOUGH & CO.,
on behalf of itself and
SunTrust Equitable Securities Corporation
Vice President
CITY OF OCOEE, FLORIDA
LM
S. Scott Vandergrift, Mayor
Executed on: , 1998
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING HELD ON
, 1998 UNDER
AGENDA ITEM NO.
15 September 29, 1998
EXHIBIT"A"
TERMS OF SERIES 1998 BONDS
MATURITY SCHEDULE
MATURITIES, PRINCIPAL AMOUNTS, INTEREST RATES
AND PRICES OR YIELDS
$ Serial Bonds
Principal Interest Principal Interest
Maturity Amount Rate Xjdd Matu= Amount Rate Yicw
$ % Term Bonds Due 1, 20 - Price %
$ % Term Bonds Due 1, 20 - Price %
$ % Term Bonds Due 1, 20 - Price %
(Accrued interest to be added)
A-1 September 29, 1998
Optional Redemption
The Series 1998 Bonds maturing on or prior to October 1, 20 are not subject to redemption
prior to their respective maturities. The Series 1998 Bonds maturing on or after October 1, 20 are
subject to redemption prior to maturity on or after October 1, 20_, at the option of the City, in
whole at any time or in part on any interest payment date in such manner as shall be determined by
the City and by lot within a maturity if less than a full maturity from any legally available moneys
at a redemption price (expressed as a percentage of the principal amount) as set forth in the following
table, plus accrued interest to the redemption date.
Period During Which Redeemed Redemption
Both dates inclusive) Price
October 1, through September 30, %
October 1, through September 30,
October 1, and thereafter
Mandatory Redemption
The Series 1998 Bonds which mature on October 1, are subject to mandatory
redemption in part prior to maturity by lot, at redemption prices equal to 100% of the principal
amount thereof plus interest accrued to the redemption date, beginning on October 1, , and on
each October 1 thereafter, in the following principal amounts in the years specified:
*Maturity
Principal
Y= Amount
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
A-2 September 29, 1998
The Series 1998 Bonds which mature on October 1, are subject to mandatory
redemption in part prior to maturity by lot, at redemption prices equal to 100% of the principal
amount thereof plus interest accrued to the redemption date, beginning on October 1, , and on
each October 1 thereafter, in the following principal amounts in the years specified:
Principal
Y&M Amount
*
*Maturity
The Series 1998 Bonds which mature on October 1, are subject to mandatory -
redemption in part prior to maturity by lot, at redemption prices equal to 100% of the principal
amount thereof plus interest accrued to the redemption date, beginning on October 1, , and on
each October 1 thereafter, in the following principal amounts in the years specified:
*Maturity
Principal
Y= Amount
A-3 September 29, 1998
EXHIBIT "B"
DISCLOSURE STATEMENT AND TRUTH -IN -BONDING STATEMENT
, 1998
Mayor and Members of the
City Commission
City of Ocoee, Florida
Re: Transportation Refunding and Improvement Revenue Bonds, Series 1998
Dear Mayor and Commission Members:
In connection with the proposed issuance by the City of Ocoee, Florida (the "City") of
$ in aggregate amount of its Transportation Refunding and Improvement Revenue
Bonds, Series 1998 (the "Series 1998 Bonds"), William R. Hough & Co. and SunTrust Equitable
Securities Corporation (collectively, the "Underwriters") is underwriting a public offering of the
Series 1998 Bonds.
The purpose of the following paragraphs of this letter is to furnish, pursuant to the provisions
of Section 218.385(6), Florida Statutes, certain information with respect to the arrangements
contemplated for the purchase and sale of the Series 1998 Bonds, as follows:
(a) The nature and estimated amount of expenses to be incurred by the Underwriters in
connection with the purchase and re -offering of the Series 1998 Bonds are set forth in Schedule I
attached hereto.
(b) There are no "finders," as defined in Section 218.386, Florida Statutes, connected
with the sale and purchase of the Series 1998 Bonds.
(c) The underwriting spread, the difference between the price at which the Series 1998
Bonds will be initially offered to the public by the Underwriters and the price to be paid to the City
for the Series 1998 Bonds, exclusive of accrued interest, will be $ per $1,000 of Series
1998 Bonds issued.
(d) As part of the estimated underwriting spread set forth in paragraph (c) above, the
Underwriters will charge a management fee of $ per $1,000 of Series 1998 Bonds issued.
B-1 September 29, 1998
(e) No other fee, bonus or other compensation is estimated to be paid by the Underwriters
in connection with the issuance of the Series 1998 Bonds to any person not regularly employed or
retained by the Underwriters (including any "finder" as defined in Section 218.386, Florida Statutes),
except as specifically enumerated as expenses to be incurred by the Underwriters, as set forth in
paragraph (a) above.
(f) The name and address of the Underwriters are:
William R. Hough & Co.
100 Second Avenue South / Suite 800
St. Petersburg, Florida 33701-4386
SunTrust Equitable Securities Corporation
200 South Orange Avenue
M/C 0-1102 / Tower 10
Orlando, Florida 32801
The purpose of the following paragraphs are 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 City is proposing to issue $ of the Series 1998 Bonds for the
principal purposes of providing sufficient monies to (1) refund a portion of the City's Transportation
Refunding and Improvement Revenue Bonds, Series 1990, currently outstanding in the aggregate
principal amount of $6,050,000 (the "Series 1990 Bonds"); (2) finance the Project, consisting of the
acquisition of rights-of-way and the design, construction, paving and improvement of certain roads
and related drainage improvements within the City, (3) acquire a surety bond in an amount equal to
the Reserve Requirement for the Series 1998 Bonds for deposit into a special subaccount in the
Reserve Account established for the benefit of the Series 1998 Bonds, and (4) pay costs of issuance
of the Series 1998 Bonds, including the municipal bond insurance policy premium. This obligation
is expected to be repaid over a period of approximately 30 years. At the interest rates set forth on
Exhibit "A" to the Bond Purchase Contract to which this is attached, total interest paid over the life
of the obligation (including accrued interest) will be $
(b) The source of repayment or security of the Series 1998 Bonds is the Pledged Funds
as defined in the Resolution. Authorizing this debt will result in an average of approximately
$ of such Pledged Funds not being available to finance other services of the City each
year for approximately 30 years.
B-2 September 29, 1998
The foregoing is provided for information purposes only and shall not affect or control the
actual terms and conditions of the Series 1998 Bonds.
Very truly yours,
WILLIAM R HOUGH & CO.
By:
Title: Vice President
B-3 Q:\03198\Bpa2.wpd
September 29, 1998
SCHEDULEI
UNDERWRITERS' ESTEkIATED EXPENSES
(Per $1,000 of Series 1998 Bonds)
Underwriters' Counsel
Travel and out-of-pocket
Federal Funds/Day Loan
Dalnet/Dalcomp, DTC/CUSIP/MSRB
TOTAL $
Q:\03198\Bpa2.wpd
B-4 September 29, 1998
"CENTER OF GOOD LII NG -PRIDE OF WEST OR9AGE"
CITY OF OCOEE
150 N. LAKESHORE DRIVE
OCOEE, FLORIDA 34761-2258
(407)656-2322
December 5, 1997
Honorable Mayor and
Members of the City Commission
City of Ocoee, Florida
Gentlemen:
MAYOR • COM,\IISSIO�ER
S. SCOTT VANDERGRIFT
COMMISSIONERS
DANNY HOWELL
SCOTT ANDERSON
SCOTT A. GLASS
NANCY). PARKER
CITY MASAGER
ELLIS SHAPIRO
The Comprehensive Annual Financial Report of the City of Ocoee, Florida, for the year
ended September 30, 1997, is submitted herewith pursuant to Article III, Section 11 of the
City Charter, Florida Statutes Chapter 11, Section 45, and Chapter 10.550 of the Rules of
the Auditor General of the State of Florida. The Annual Financial Report was compiled by
the staff of the Finance Department, with dose cooperation of the External Auditors, and
represents the official report of the City's financial operations and condition to the citizens,
City Commission, management personnel of the City, rating agencies, and other interested
persons. Responsibility for both the accuracy of the presented data, and the completeness
and fairness of the presentation, including all disclosures, rests with the City. We believe
the data, as presented, is accurate in all material aspects; that it is presented in a manner
designed to fairly set forth the financial activity of its various funds, and that all disclosures
necessary to enable the reader to gain the maximum understanding of the City's financial
affairs have been included.
FINANCIAL REPORTING AND CONTENT
We have prepared this Comprehensive Annual Financial Report in conformance with the
reporting format and presentation standards set forth by professional pronouncements of
the Governmental Accounting Standards Board (GASB).
The accompanying financial statements present the financial position, results of operations,
and the cash flows of the applicable fund types governed by the City Commission. The
reporting entity for the City of Ocoee includes all organizations, functions, and activities of
government for which the City (the Mayor and City Commission) has financial
accountability. (See Notes to Financial Statements, Reporting Entity for more details.)
v
FINANCIAL REPORTING AND CONTENT - CONTINUED
The Comprehensive Annual Financial Report (CAFR) is the City's official annual financial report
and has been designed to meet the needs of a broad spectrum of readers. The report has
been divided into four (4) distinctive sections; i.e., the Introductory Section, Financial Section,
Statistical Section and Compliance Section.
Introductory Section - This section includes the Table of Contents, Letter of
Transmittal, City's Organizational Chart, and the City of Ocoee's Certificate of
Achievement for Excellence in Financial Reporting for the year ended September 30,
1996.
II. Financial Section - The Financial Section contains the opinion of the City's
independent auditors, McDirmit, Davis, Lauteria, Puckett, Vogel & Company, P.A.,
Certified Public Accountants, the general purpose financial statements, the notes to
the financial statements, and the combining and individual fund financial statements
for six different fund types and the City's two account groups (encompassing 23
different funds). The General Purpose Financial Statements are the City's basic
financial statements and provide an overview for readers who require less detailed
information about the City's finances. The remainder of the Financial Section
presents the combining statements, individual fund statements, and schedules
focusing on individual funds and account groups. The Financial Section necessarily
contains the major portion of the report and has been subdivided into the various
descending levels of reporting detail necessary to adequately disclose the financial
position and operating results of the City's various fund entities and account groups
and to demonstrate compliance with both finance -related, legal and contractual
requirements.
III. Statistical Section - This section contains substantial financial information. However,
the various tables differ from the Financial Section in that the tables present some
non -accounting data, cover more than one fiscal year, and are designed to reflect
social, demographic and economic data, financial trends, and the fiscal capacity of
the City.
IV. Internal Control and Compliance Section - This section includes the independent
auditor's reports on the City's internal control and the City's compliance with laws
and regulations.
vi
ECONOMIC CONDITION AND OUTLOOK
The City of Ocoee, a municipal corporation of the State of Florida, operates under a
commission/manager form of government. Located in Central Florida, Ocoee is the home of
approximately 21,250 residents. In addition to its Gose proximity to many tourist attractions,
including Disney World, Universal Studios, and Sea World, Ocoee is also conveniently located
near other major employers such as Lockheed Martin. These factors bring large numbers of
people to the area, not only as visitors, but also as permanent residents.
As a result of Ocoee's increasing population and its location at the crossroad of several major
highways, a new one -million square foot mall was built in Ocoee which opened in October
1996. The top three other employers in Ocoee -- Health Central Hospital, Sysco Foods, Inc.
and Florida Auto Auction -- have recently or are in the process of completing major
expansions to their businesses as well. With such continuing economic growth, the financial
position of the City remains sound. There were no significant or material changes in financial
policy and all required debt service payments of principal and interest were met.
MAJOR INITIATIVES
Ocoee continues to experience phenomenal growth. From 1987 through January of 1990,
1,504 acres of land were annexed into the City. During 1992, 1,856 additional acres were
annexed. Through a Joint Planning Area Agreement with Orange County, these lands will be
developed consistent with the City's adopted Comprehensive Plan.
There are many factors that have influenced and continue to influence the growth of the City.
Ocoee's proximity to Orlando and its location at the juncture of State Road 50, Florida's
Turnpike, the East-West Expressway, and the planned Western Beltway make it convenient
for people to live and work in the City. State Road 50 is a major east -west arterial that spans
the State; Florida's Turnpike provides a limited -access highway for north -south traffic and has
an exit in Ocoee; the East-West Expressway provides a 15 -minute travel route from Ocoee
to downtown Orlando and continues to the eastern limits of Orange County; and the planned
Western Beltway will provide a similar highway to Walt Disney World and other points south
to Osceola County.
To meet the increasing demands of travel within Ocoee city limits, the City built Clarke Road,
a four -lane divided roadway, which begins at the East-West Expressway terminus and State
Road 50 and runs north to the City's current limits. Plans are underway to bring Clarke Road
further north, eventually to Apopka's city limits. Clarke Road has spawned the development
of many residential neighborhoods as well as neighborhood commercial centers and the West
Oaks Mall.
vii
MAJOR INITIATNES - CONTINUED
Another factor which has influenced the growth of Ocoee is the amenities it has to offer,
including numerous lakes, rolling hills, recreational opportunities and excellent schools. The
provision of services such as central water and wastewater services is also an important
aspect of Ocoee's growth management. As an example of combining services with amenities,
the City's 240 -acre effluent disposal site is also home to an 18 -hole PGA designed golf
course. Ocoee continues to expand and improve its wastewater and water facilities to keep
pace with the City's growth, and to meet state concurrency requirements through an
aggressive capital improvements program. One such example is the development of a
comprehensive water reuse plan.
Several major initiatives have been completed recently. In 1994, Ocoee completed a new City
Hall building and adjoining Police Department facility. These projects were accomplished
through the issuance of a $2.5 million bond. In April 1996, the City received loan proceeds
of $2.2 million to finance stormwater drainage improvements. Those improvements included
several projects which were prioritized by the Ocoee City Commission according to the
severity of the drainage problems. Several of these projects have been completed and the
next phase is under construction. Two new fire stations were also completed in December
1997, and a Public Works facility and new multi-purpose recreational facility are planned to
be under construction by the Spring of 1998. These projects are part of a $4.8 million capital
improvement loan.
FINANCIAL INFORMATION
In the design and direction of the City's accounting system, we have followed Generally
Accepted Accounting Principles (GAAP) for state and local governments as set forth in the
aforementioned statements on governmental accounting and financial reporting. Our
accounting policies follow the modified accrual concept of reporting revenues and
expenditures for all governmental funds; i.e., General Fund, Special Revenue Funds, Debt
Service Funds, Capital Project Funds, and Trust and Agency Funds. The City's Proprietary
Funds and Pension Trust Funds are accounted for on the full accrual basis. Further
explanation of the City's accounting policies is contained in the Notes to Financial Statements,
which are an integral part of the Financial Section of this report.
Mrtemal Control Stn xuwe
The Finance Department is responsible for maintaining an internal control structure that
provides management with reasonable, but not absolute, assurance that assets are safe-
guarded against loss from unauthorized use or disposition, and that transactions are executed
in accordance with management's authorization and recorded properly to permit the
preparation of financial statements in accordance with generally accepted accounting
principles.
viii
lnternal Control S=%xe - Continued
To understand the limitations of internal controls it is essential that the concept of reasonable
assurance be clearly stated. The concept is as follows:
The cost of a control should not exceed the benefits,
and
2. The evaluation of costs and benefits requires the use of estimates and judgments
by management.
We believe that the City's internal accounting controls adequately safeguard assets and
provide reasonable assurance of proper recording of financial transactions.
Budgetary control is maintained in a manner to comply with the requirements and constraints
of the City Charter through a system of monthly financial schedules reflecting expenditures
and encumbrances against appropriations. The annual budget provides detail of the
approved appropriation by specific purpose within each object of expense. Purchase orders
for supplies or equipment not provided for in the approved budget or which cause
appropriation balances to be exceeded, are not released until additional appropriations or
appropriation transfers are approved.
General Governmental Functions
The General Fund encompasses the general governmental functions of the City not required
to be accounted for in other funds. The following summary compares actual revenue to
support these functions for current and prior fiscal year:
ix
Increase
Percent
(Decrease)
Revenue and Other Financina Sources
Amount
Of Total
From 1996
Taxes
$ 4,966,592
42.3%
$ 696,598
Licenses & Permits
879,650
7.5
29,223
Intergovernmental Revenues
3,368,182
28.7
279,661
Charges for Services
208,119
1.8
21,956
Fines & Forfeitures
75,483
.6
(26,412)
Investment Income
146,357
1.2
56,691
Miscellaneous Revenues
163.504
1.4
55.125
SUB TOTAL
9,807,887
83.5
1,112,842
Transfers from Other Funds
1,633,763
13.9
102,578
Capital Lease Proceeds
302.412
2.6
264.712
TOTAL
$ 11.744.062
100.0%
$ 1,480.132
ix
Property taxes are the major source of local tax revenue. In fiscal year 1996, the City's
property tax, all of which is for operating purposes, was 4.0 mills and for 1997, the rate was
4.0 mills. The related property values subject to taxes showed growth of 15.2 percent,
representing $76,698,257 in added taxable property.
Another principal source of local tax revenue consists of utility service taxes. These taxes are
levied at the rate of 10 percent on telephone, electric, water, natural and bottled gas services
within the City. In 1997, total revenue from this tax reflected an increase of $229,793.
Intergovernmental revenue consists primarily of shared revenue from other governmental
agencies. The increase in intergovernmental revenues is due primarily to an increase of
$223,188 in State shared sales tax.
The following summary shows the level of expenditures used in providing governmental
services:
The increase in General Government expenditures is due to over $250,000 of capital outlay
primarily for a new computer system in the finance department. The remaining increase in
primarily due to an increase in personal services expenditures due to the hiring of additional
employees.
The increase in Public Safety expenditures is due primarily to an increase in salaries and
benefits for police and fire departments, as well as the hiring of additional new staff.
Significant capital investment in the form of capital leases for equipment also contributed to
the increase. The additional capital leases also caused the increase in debt service
expenditures.
Special Revenue Funds account for revenue from special revenue sources which are legally
restricted for specific purposes. The combined fund balances of these funds amount to
$8,480,680 and the following represents an analysis of sources and uses in the Special
Revenue Funds for 1997:
x
Increase
Expainik ues and
Percent
(Decrease)
Other Uses
Amount
Of Total
From 1996
General Government
$ 2,432,702
21.7%
$ 525,605
Public Safety
5,826,668
51.9
1,137,665
Physical Environment
1,162,242
10.4
11,193
Culture & Recreation
466,593
4.2
49,098
Debt Service
339.375
3.0
205.959
SUB TOTAL
10,227,580
91.2
1,929,520
Transfers to Other Funds
989.477
8.8
(75.3681
TOTAL
$ 11,217.057
100.0%
$ 1.854.152
The increase in General Government expenditures is due to over $250,000 of capital outlay
primarily for a new computer system in the finance department. The remaining increase in
primarily due to an increase in personal services expenditures due to the hiring of additional
employees.
The increase in Public Safety expenditures is due primarily to an increase in salaries and
benefits for police and fire departments, as well as the hiring of additional new staff.
Significant capital investment in the form of capital leases for equipment also contributed to
the increase. The additional capital leases also caused the increase in debt service
expenditures.
Special Revenue Funds account for revenue from special revenue sources which are legally
restricted for specific purposes. The combined fund balances of these funds amount to
$8,480,680 and the following represents an analysis of sources and uses in the Special
Revenue Funds for 1997:
x
The increase in fund balance for the Road Impact Fund is primarily due to road construction
at the intersection of Story Road/Kissimmee Marshall Farm. The prior period adjustment is
due to the implementation of GASB #31 which changed the carrying amount of investments
from cost to fair value.
The City's outstanding debt is classified and reported according to the type of resource
pledged to satisfy the individual debt series.
General long-term debt consists of:
1. Transportation Refunding and Improvement Revenue Bonds, Series 1990, totaling
$7,000,000. The proceeds were used to defease the City's Public Improvement Revenue
Bonds, Series 1987, and for paving, extending and improving certain streets within the
City. These bonds are secured by certain public service taxes and the Local Option
Gas Tax.
2. Capital Improvement Revenue Bonds, Series 1991, totaling $2,580,000. The proceeds
were used to finance the construction of the new City Hall and expansion of the Police
Station. These bonds are secured by non -ad valorem revenues of the City.
3. Stormwater Utility Revenue Promissory Note, Series 1996, totaling $2,200,000. The
proceeds are being used to finance the acquisition, construction, and improvements of
certain stormwater utility capital improvements. This note is secured by a pledge of the
net revenues of the Stormwater System levied and collected by the City.
4. Capital Improvement Revenue Promissory Note, Series 1996, totaling $4,840,000. The
proceeds are being used to finance certain capital projects including two fire stations,
a gymnasium and recreational facility and a public works facility. This note is payable
solely from Non -Ad Valorem Revenues of the City.
A
Special Revenue Funds - Continued
Prior
Change
Period
in Fund
Fund
Sources
uses
Adjustment
Balance
Road Impact
$ 1,714,077
$ 2,652,699
$ (111,347)
$(1,049,969)
Parks
307,695
174,390
(11,315)
121,990
Stormwater
814,396
1,011,061
—
(196,665)
Interim Services
60,339
50,874
---
9,465
Police Training
1,884
—
–
1,894
Police Trust
5,688
20,717
---
(15,029)
Fire Impact
870,245
776,899
(39,503)
53,843
Police Impact
150.949
100.839
50.110
TOTAL
$3,925,273
$4,787,479
$062,165
$ (1.024,371)
The increase in fund balance for the Road Impact Fund is primarily due to road construction
at the intersection of Story Road/Kissimmee Marshall Farm. The prior period adjustment is
due to the implementation of GASB #31 which changed the carrying amount of investments
from cost to fair value.
The City's outstanding debt is classified and reported according to the type of resource
pledged to satisfy the individual debt series.
General long-term debt consists of:
1. Transportation Refunding and Improvement Revenue Bonds, Series 1990, totaling
$7,000,000. The proceeds were used to defease the City's Public Improvement Revenue
Bonds, Series 1987, and for paving, extending and improving certain streets within the
City. These bonds are secured by certain public service taxes and the Local Option
Gas Tax.
2. Capital Improvement Revenue Bonds, Series 1991, totaling $2,580,000. The proceeds
were used to finance the construction of the new City Hall and expansion of the Police
Station. These bonds are secured by non -ad valorem revenues of the City.
3. Stormwater Utility Revenue Promissory Note, Series 1996, totaling $2,200,000. The
proceeds are being used to finance the acquisition, construction, and improvements of
certain stormwater utility capital improvements. This note is secured by a pledge of the
net revenues of the Stormwater System levied and collected by the City.
4. Capital Improvement Revenue Promissory Note, Series 1996, totaling $4,840,000. The
proceeds are being used to finance certain capital projects including two fire stations,
a gymnasium and recreational facility and a public works facility. This note is payable
solely from Non -Ad Valorem Revenues of the City.
A
Proprietary Fund debt consists of:
Water and Sewer System Refunding and Improvement Revenue Bonds, Series 1993,
totalling $8,555,000. The proceeds are designated to finance the refunding of Water and
Sewer System Revenue Bonds, Series 1989A and 19898, and improving the City's water
and wastewater systems. These bonds are secured by the combined Water and
Wastewater Fund operating revenues, interest earnings, impact fees and a first priority
pledge of cash payments due from developers.
2. Water and Sewer System Improvement Revenue Bonds, Series 1997, totalling
$10,150,000. The proceeds are designated to expand the capacity of and construct and
acquire other improvements to the City's Water and Sewer System (the "System").
These bonds are secured by prior lien upon and pledge of Net Revenues of the System,
and the Water and Sewer system development charges to the extent of the bond service
component (the "Pledged Funds"). Such prior lien and pledge of the Pledged Funds is
on a parity with the lien and pledge granted to the holders of the City's Water and Sewer
System Refunding and Improvement Revenue Bonds, Series 1993.
Adequate reserves are being maintained in all sinking funds, in accordance with the provisions
of the ordinance governing the issuance of the above -referenced bonds.
Cash Management
The following schedule compares investment income (loss) in all funds for the current and
prior fiscal year:
The significant increase in investment income is a result of implementation of GASB Statement
No. 31 which requires the recording of investments at fair value. In prior years, investments
were recorded at cost.
xii
1996-97
1995-96
4tcrease
Fund Type
Amount
Amount
Decrease
General
$ 146,357
$ 89,666
$ 56,691
Special Revenue
630,326
512,197
118,129
Debt Service
62,368
32,058
30,310
Capital Projects
353,268
74,767
278,501
Expendable Trust
—
2,473
(2,473)
Pension Trust
1,326,907
67,939
1,258,968
Enterprise
874.199
440.268
433 931
TOTAL
$ 3.393.425
$1,219,368
$2,174.057
The significant increase in investment income is a result of implementation of GASB Statement
No. 31 which requires the recording of investments at fair value. In prior years, investments
were recorded at cost.
xii
Cash Management - Contiruied
The primary objectives for the City's cash reserves are first, protection and safety of the City's
funds, second, provision for liquidity, and third, maximized return on the portfolio but
minimized risk, in that order. The investment portfolio will maintain sufficient liquidity to ensure
cash availability for operating cash flow requirements. Cash held in the pooled checking
account is invested in a SunTrust overnight repurchase agreement.
Some of the cash is maintained in trust accounts which are designated for a specific purpose
and have been isolated from normal operational cash. For example, the pension trust fund
expenditure needs are of a long-range nature and therefore investments are made in long-
term investments. The increase in investment income in the general fund is due primarily to
the fact that there has been a significant increase in amount of investments due to actual
revenue exceeding budgeted revenue and actual expenditures being less than budgeted
expenditures. The increase in investment income in the special revenue funds is due primarily
to the increase in investments in the Road Impact Fund as a result of the West Oaks Mall
Construction.
T__
The Capital Projects Funds are used to account for financial resources to be used for the
acquisition or construction of major capital facilities. In Fiscal Year 1997, the Capital Projects
Funds were used to account for major road and street improvements, stormwater drainage
improvements, the acquisition of a new computer system, and other capital improvements
including two new fire stations and a recreation center.
Proprietary Fund Types are those that are financed and operated in a manner similar to a
private business enterprise where the intent of the governing body is that the cost of providing
goods and services on a continuing basis be financed through user charges or where the
governmental body has decided that periodic determination of revenues earned, expenses
incurred, and/or net income is appropriate for capital maintenance, budget policy,
management control, accountability, or other purposes. The City accounts for its water,
wastewater and solid waste funds as enterprise operations. These funds are primarily
supported by user charges.
Water and Wastewater Fund
1996-97
1995-96
Increase
Description
Amount
Amount
Decrease
Operating Revenues
$ 4,030,639
$ 3,873,669
$ 156,970
Operating Expenses
3,931,320
3,346,461
584,859
Operating Income
99,319
527,208
(427,889)
Net Income (Loss)
(536,502)
(356,347)
(180,155)
Revenues Available for Debt Service
2,225,130
2,167,447
57,683
Annual Bond Debt Service
1,160,907
645,054
515,853
Revenue Bond Coverage
1.92
3.36
(1.44)
Water and Wastewater Fund - Continued
Operating expenses increased 17.5% due primarily to an increase in salaries and benefits and
depreciation expense.
Bond covenants require that total revenues be at least 110 percent of annual debt service
requirements after deductions for operating expenses and debt service reserve requirements.
Trust Funds are established to account for assets held by the City in a trustee capacity for
individuals, private organizations, other government units, and/or other funds.
Pension Trust Fund
The City maintains two separate single employer defined benefit pension plans which cover
virtually all full time employees of the City. In addition to a plan for general employees, the
City has a plan for the police officers and firefighters.
Further details concerning pension expense, vested benefits and actuarial assumptions are
included in the notes to the financial statements. At September 30, 1997, the pension funds
had total assets of $7,783,274.
F .,�T`i^1aT Jr LT.]
The City maintains an optional deferred compensation plan which is funded solely by
employees through payroll deductions. A participant in the deferred compensation plan has
an option regarding in which fund(s) his/her contribution will be invested. The amount due
to employees under the City's deferred compensation agency fund at September 30, 1997
was $1,092,244.
xiv
1996-97
1995-96
Increase
Description
Amount
Amount
(Decrease)
Operating Revenues
$ 1,243,295
$ 1,176,211
$ 67,084
Operating Expenses
1,121,437
987,791
133,646
Operating Income
121,858
188,420
(66,562)
Net Income
23,354
94,846
(71,492)
Trust Funds are established to account for assets held by the City in a trustee capacity for
individuals, private organizations, other government units, and/or other funds.
Pension Trust Fund
The City maintains two separate single employer defined benefit pension plans which cover
virtually all full time employees of the City. In addition to a plan for general employees, the
City has a plan for the police officers and firefighters.
Further details concerning pension expense, vested benefits and actuarial assumptions are
included in the notes to the financial statements. At September 30, 1997, the pension funds
had total assets of $7,783,274.
F .,�T`i^1aT Jr LT.]
The City maintains an optional deferred compensation plan which is funded solely by
employees through payroll deductions. A participant in the deferred compensation plan has
an option regarding in which fund(s) his/her contribution will be invested. The amount due
to employees under the City's deferred compensation agency fund at September 30, 1997
was $1,092,244.
xiv
General Foxed Assets
The General Fixed Assets of the City of Ocoee are those fixed assets used in the performance
of general governmental functions and exclude the fixed assets of the proprietary funds. As
of September 30, 1997, the general fixed assets of the City of Ocoee totaled $9,871,831. This
amount represents the original cost of the assets and does not include certain improvements,
such as streets, sidewalks and other items of an immovable nature.
Risk Management
Risk of loss from theft of, damage to or destruction of assets, errors and omissions, job-
related illnesses or injuries to employees, and natural disasters are transferred by the City to
various commercial insurers through the purchase of insurance. In addition, various control
techniques, including employee accident prevention training, have been implemented to
minimize accident -related losses.
OTHER INFORMATION
Pursuant to the City of Ocoee Charter, Florida Statutes Chapters 11.45 and 218, and Chapter
10.550 of the rules of the State Auditor General, an audit of the accounts and financial
statements has been completed by the City's independent certified public accountants,
McDirmit, Davis, Lauteria, Puckett, Vogel & Company, P.A., whose opinion is included in the
financial section of the report.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Ocoee, Florida for its comprehensive annual financial report for the year ended September
30, 1996. The Certificate of Achievement is a prestigious national award recognizing
conformance with the highest standards for preparation of state and local government
financial reports. In order to be awarded a Certificate of Achievement, the City must publish
an easily readable and efficiently organized comprehensive annual financial report whose
contents conform to program standards. Such reports must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City has received a
Certificate of Achievement for the last eight consecutive years. We believe that our current
report continues to conform to the Certificate of Achievement Program requirements, and we
are submitting it to GFOA to determine its eligibility for another certificate.
M
Acknowledgements
The preparation of this report on a timely basis could not be accomplished without the
efficient and dedicated services of the entire staff of the Finance Department. We wish to
express our appreciation to all members of the Department who assisted and contributed to
its preparation. We would also like to thank the members of the City Commission for their
interest and support in planning and conducting the financial operations of the City in a
responsible and progressive manner.
Respectfully submitted.
Wanda Horton, Finance Director
xvi
Finance Polic
Utility Milling CID
CITY OF OCOEE
ORGANIZATIONAL CHART
Ocoee Voters
City Attorney---- City Commission Appointed Boards
Information
City Manager Systems Mapping
Suppression I I Cemetery
t Payroll I I DARE: I I GMS Archives
I urchusing Dispatch
* Fiscal Year 1997-1998
Solid Waste/ I Development I Employee
Recycling Benefits
Facilities
Maintenance
Plcct
Mainlcnaacc
Slrccl
Maintenance
Park
Maintenance
utilities
7.oning Water
Projects I 11.ahor Negotiations I Permits I I Engineering
Enforcement I I Engineering
Occupational Slonmvalcr Ulilily
Construction
Inspection
Relations
This page intentionally left blank.
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Ocoee,
Florida
For its Comprehensive Annual
Financial Deport
for the Fiscal Year Ended
September 30, 1996
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
PNCE SIAM �J/I/1/'
I
�MIiE�NiAiFS ,
f; MO. President
6�MPORAMN S
O� SLA
W910 4X
Executive Director
This page intentionally left blank.
FINANCIAL SECTION
This section contains the following subsections:
Independent Auditor's Report
General Purpose Financial Statements
Combining Statements
Supplementary Information
This page intentionally left blank.
MCDIRMIT, DAMS, LAUTERIA,
PUCKETT, VOGEL & COMPANY, P.A.
605 E. Robinson Street, Suite 635
Post Office Box 1185
Orlando, Florida 32802-1185
INDEPENDENT AUDrrOR'S REPORT
Honorable Mayor and City Commissioners
City of Ocoee, Florida
Telephone: (407) 843-5406
Fax: (407) 649-9339
E -Mail: mdlpv@aol.com
We have audited the accompanying general purpose financial statements of the City of
Ocoee, Florida, as of and for the year ended September 30, 1997, as listed in the table of
contents. These general purpose financial statements are the responsibility of the City's
management. Our responsibility is to express an opinion on these general purpose financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and
GovemmentAuditing Standards, issued by the Comptroller General of the United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the general purpose financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
general purpose financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the
overall general purpose financial statement presentation. We believe that our audit provides
a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to in the first paragraph
present fairly, in all material respects, the financial position of the City of Ocoee, Florida, as
of September 30, 1997, and the results of its operations and the cash flows of its proprietary
fund types and the changes in pension fund net assets for the year then ended in conformity
with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated
December 5, 1997 on our consideration of the City of Ocoee, Florida's internal control
structure and a report dated December 5, 1997 on its compliance with laws and regulations.
Members: Private Companies Practice Section • American Institute of Certified Public Accountants • Florida Institute of Certified Public Accountants
go
xix
Our audit was made for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The combining and individual fund and account group financial
statements, and supplementary information listed in the accompanying table of contents are
presented for purposes of additional analysis and are not a required part of the general
purpose financial statements of the City of Ocoee, Florida. Such information has been
subjected to the auditing procedures applied in the audit of the general purpose financial
statements and, in our opinion, is fairly presented in all material respects in relation to the
general purpose financial statements taken as a whole.
The information listed in the Statistical Section is presented for purposes of additional analysis
and is not a required part of the general purpose financial statements. Such information has
not been subjected to the auditing procedures applied in the audit of the general purpose
financial statements and, accordingly, we express no opinion on it.
I&AAma, hwz1 a),�tL�lGet,
/wtt,U,r$di
McDIRMIT, DAVIS, LAUTERIA,
PUCKETT, VOGEL & COMPANY, P.A.
December 5, 1997
M
GENERAL PURPOSE FINANCIAL STATEMENTS
(COMBINED STATEMENTS - OVERVIEW)
These basic financial statements provide a summary overview of the
financial position of all funds and account groups as well as the operating
results of all funds. They also serve as an introduction to the detailed
statements that follow in,subsequent sections.
SEPTEMBER 30, 1897
Assets
Cash And Cash Equivalents
Investments
Receivables (Net Of Allowances For Uncoilec tibles)
Inventories - At Cost
Due From Other Funds
Due From Other Governments
Prepaid Costs
Restricted Assets:
Cash And Cash Equivalents
Investments
Cash With Paying Agent
Property, Plant And Equipment
Less: Accumulated Depreciation
Construction In Progress
Unamortized Bond Issuance Costs
Amount Available In Debt Service Funds
Amount To Be Provided For Retirement Of
General Long-term Debt
T__M
$ 648,461 $ 2,885,503 $ 196,367
1,592,410 5,601,684 —
64,049 126,309 —
19,858 — —
21,392 — –
292,704 — —
28,770 — —
833,789
821,132
$2,667,644 8 613 496 $1,851,288
The accompanying notes are an integral part of the financial statements.
-1-
Govermnenfal proprietary
Fiduciary Accowi Grams
Fund Types Fund Types
Fund Types General General
Totals
Capital
Trust And Fired Lang -Term
(Memorandum
Prpiecis Enterprise
Arterrry Assess Debt
Orgy)
$ 3,367,821 $ 744,805
$ 21,486 $ — $ —
$ 7,864,443
2,586,528 1,856,095
8,753,721 — —
20,390,438
26 771,034
100,189 — —
1,061,607
_ 22,152
— — —
42,010
_ —
122 — —
21,514
— 8,226
— — —
300,930
_ —
— — —
28,770
— 2,906,609
— — —
2,906,609
— 10,833,216
— — —
11,667,005
— 822,326
— — —
1,643,458
— 35,857,558
— 10,769,754 —
46,627,312
— (10,069,481)
— — —
(10,069,481)
— 2,969,186
— 1,021,637 —
3,990,823
— 589,109
— — —
589,109
— —
— — 1,030,156
1,030,156
15, 724, 869 15, 724, 869
$ 5,954,375 $ 47,310,835 $ 8,875,518 $ 11,791,391 $16,755,025 $103,819,572
-2- (Continued)
..T. 7 • .
.. . .. no
Liabilities And Fund Equity
Liabilities
Accounts Payable
Retainage Payable
Accrued Liabilities
Due To Other Funds
Deterred Revenue
Current Liabilities (Payable From Restricted Assets):
Customer Deposits
Matured Bonds Payable
Matured Interest Payable
Deferred Compensation Payable
Accrued Annual Leave
Bonds Payable
Obligations Under Capital Leases
Notes Payable
Total Liabilities
Fund Equity
Contributed Capital
Investment In General Fixed Assets
Retained Earnings:
Reserved For Renewal & Replacement
Unreserved
Total Retained Earnings
Fund Balances:
Reserved:
Inventories
Prepaid Costs
Debt Service
Employee's Pension Benefits
Encumbrances
Unreserved:
Designated For Capital Projects
Designated For Subsequent Year's Budget
Undesignated
Total Fund Balances
$ 17,856 $ 123,154 $ —
257,060 — -
- 782 —
244,000 8,880 —
325,000
496,132
518.916 132.816 821.132
19,858 — —
28,770 — -
- — 1,030,156
192,599 — —
— 8,480,680 —
1,907,501 — —
2.148,728 8,480.680 1,030.156
Total Equity Arid Other Credos 2,148,728 8.480,680 1,030,156
Total I iat l Fund Equity Arid
Other Credits $2,667,644 $8,613,496 $1,851,288
The accompanying notes are an integral part of the financial statements.
-3-
Governmental proprietary
Fiduciary
Accaut Groups
— —
Fund T lm Fund Types
Fund Types
General General
Totals
Capital
Tns And
Foxed Long -Tenn
(Memoranckim
proiects Enterprise
Agency
Assets Debt
Only)
$ 8,192 $ 230,171
$ —
$ — $ —
$ 379,373
66,074 27,518
—
— —
93,592
— 162,719
—
— —
419,779
— 20,610
122
— —
21,514
— 39,002
—
— —
291,882
— 344,224
—
— —
344,224
— 335,000
—
— —
660,000
— 487,326
—
— —
983,458
— —
1,092,244
— —
1,092,244
— —
—
— 476,573
476,573
— 17,440,418
—
— 8,165,000
25,605,418
— 198,798
—
— 1,143,452
1,342,250
6,970,000
6,970.000
74,266 19,285,786
1,092,366
— 16,755,025
38.680.307
24.120,382
— —
24.120,382
11,791.391
11,791,391
— 1,733,951
—
— —
1,733,951
2,170,716
— —
2,170,716
3,904,667
—
3,904.667
— 28,770
— — — 1,030,156
7,783,152 — — 7,783,152
— — — — — 192,599
5,880,109 — — — — 5,880,109
— — — — — 8,480,680
— — — 1.907.501
5.880.109
7,783,152
— —
25,322.825
5,880.109
28.025,049
7,783.152
11.791,391 —
65.139,265
$ 5,954,375
$ 47,310,835
$ 8,875,518$11,791,391$16,755,025
$103,819,572
-4-
CITY OF OCOEE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES AND
EXPENDABLE TRUST FUNDS
Revenues
Taxes
Licenses And Permits
Intergovernmental Revenues
Charges For Services
Fines And Forfeitures
Impact Fees/Special Assessments
Investment Income
Miscellaneous Revenues
Total Revenues
Exparvditures
Current:
General Government
Public Safety
Physical Environment
Culture And Recreation
Capital Outlay
Debt Service:
Principal Retirement
Interest And Fiscal Charges
Other Fw ancvV Sources (Uses)
Operating Transfers In
Operating Transfers Out
Capital Lease Proceeds
Promissory Note Proceeds
Net Other Fron irg Sources (Uses)
073.740.444RPNOI '10.1 I�TTTL. 127.
Fund Balances - Begirrrng Of Year
As Previously Stated
Prior Period Adjustment
As Restated
Residual Equiy Transfers
Goverrnrerrtal
Fund Tunes
General
Special Debt
Revenue Service
$ 4,966,592
$ — $ —
879,650
— —
3,368,182
9,718 —
208,119
— —
75,483
4,830 -
-
2,972,076 —
146,357
630,326 62,368
163.504
308.323
9.807.887
3.925,273 62.368
2,432,702 — —
5,826,668 547,479 —
1,162,242 2,668,844 --
466,593 56,290 —
299,171
236,321
325,000
40.204
33,042
932.041
10,227,580
3,641,976
1,257,041
(419.693)
383.297
(1 ,1964 673
1,633,763 — 1,257,744
(989,477) (1,245,503) —
302,412 — --
440,000
946,698
(1,245,503)
1.697.744
527,005
(862,206)
503,071
1,631,776
9,461,810
545,704
(10,053)
(162,1651
(18,61
1,621,723
9,299,645
527,085
43.241
Fund Balances - End Of Year 2148 728 8,480,680 1 030 156
The accompanying notes are an integral pan of the financial statements.
-5-
Goverrrnertal
Fkludary
Fund Types
Fund Types
Capital
Fundable
Totals
projects
Tnist
(Metrlorandwn Only)
$ —
$ —
$ 4,966,592
8,252
—
887,902
_
—
3,377,900
—
—
208,119
—
—
80,313
—
—
2,972,076
353,268
—
1,192,319
900
472,727
362,420
—
14,157,948
—
—
2,432,702
—
—
6,374,147
—
3,831,086
_
—
522,883
1,868,159
—
1,868,159
—
—
860,492
—
—
1.005.287
1.868.159 16.894.756
(1,505,739) — (2.736.808)
100,000 — 2,991,507
(27,969) — (2,262,949)
— — 302,412
4.400.000 _ 4,840.000
4,472,031 — 5,870.970
2,966,292 — 3,134,162
2,913,817 43,241 14,596,348
(190,837)
2.913.817 43,241 14,405.511
(43.241) —
$ 5,880.109 $ — $ 17.539,673
E:9
CITY OF ..E FLORIDA
E. . CHANGES
Revenues
Taxes
Licenses And Permits
Intergovemmental Revenues
Charges For Services
Fines And Forfeitures
Impact Fees/Special Assessments
Investment Income
Miscellaneous Revenues
Expenckures
Current:
General Government
Public Safety
Physical Environment
CuRure And Recreation
Debt Service
Total EMwKkLx'es
.c t• i...o...a • • ..: •,.
Other Funancing Sources (Uses)
Operating Transfers In
Operating Transfers Out
Net Other FwmnmV Sources (Uses)
Fund Balanicas - Begir ung of Year, As Restated
Fuad Ba{artces - End of Year
_ t"—w77Rri7
9,581,990 9,807,887 225,897
3,119,454
2,432,702
Variance
Budnet
Actual
Favorable
(Unfavorable)
$ 4,914,510 $
4,966,592
$ 52,082
740,900
879,650
138,750
3,432,070
3,368,182
(63,888)
182,160
208,119
25,959
97,000
75,483
(21,517)
85,000
146,357
61,357
130,350
163,504
33,154
9,581,990 9,807,887 225,897
3,119,454
2,432,702
686,752
6,169,544
5,696,726
472,818
1,413,107
1,162,242
250,865
677,515
486,722
190,793
339,375
(339,3751
11,379,620 10,117,767 1,261,8
(1,797,630) (309,880) 1,487,750
1,831,130 1,633,763 (197,367)
(883,500) (989,4771 (105,977)
947,630 644,286 (303,3441
(850,000) 334,406 1,184,406
850,000 1,621,723 771,723
1,956,129 $ 1,956,129
The accompanying notes are an integral part of the financial statements.
-7-
Special Revenue Funds
Variance
Favorable
Budge[ Acbial (Unfavorable)
826,000 804,199 (21,801)
20,000 10,197 (9,803)
846,000 814,396 (31,6041
710,700
578,900
131,800
—
82,806
(82,8061
710,700
661,706
48,994
135,300
152,690
17,390
(285,300)
(282.8571
2,443
(285,300)
(282.8571
2,443
(150,000)
(130,167)
19,833
150,000 367,286 217,286
$ — 237,119 $ 237,119
0
CRY OF OCOEE, FLORIDA
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN RETAINED EARNINGS
ALL PROPRIETARY FUND TYPES
FOR THE YEAR ENDED SEPTEMBER 30, 1997
Nornoperating Reverxm (Expanses)
Grant Revenue
Enterprise
Operating Reverxies
874,199
User Charges
$ 5.273,934
Operatiirg Expensas
(68,724)
Personal Services
1,919,582
Materials And Supplies
743,382
Heat, Light And Power
340,850
Depreciation And Amortization
1,531,387
Other Expenses
511,817
Recycling Expenses
5.739
Total Operating Experses
5,052,757
Operating Income
221.177
Nornoperating Reverxm (Expanses)
Grant Revenue
29,000
Investment Income
874,199
Interest Expense
(840,241)
Loss on Sale of Fixed Assets
(68,724)
Total Nonoperating Reverries
(5,7661
Income Before Operating Transfers
215,411
Operating Transfers
Operating Transfers In
29,626
Operating Transfers Out
(7581851
Net Operating Transfers
(728,5591
Net Income (Loss)
$ (513,148)
Disposition Of Net Income (Loss)
Net Income (Loss) $ (513,148)
Depreciation On Contributed Assets 366,739
Net Decrease In Retained Earrings
(146,409)
Retained Earrings - Beginning Of Year
As Previously Stated
4,210,330
Prior Period Adjustment
(159,254)
As Restated
4.051.076
Retained Earnings - End Of Year $ 3,904,667
The accompanying notes are an integral part of the financial statements.
0
CITY OF OCOEE, FLORIDA
COMBINED STATEMENT OF CHANGES IN PENSION FUND
NET ASSETS
�.; 1 Lam: �7� y7JId�I:�datTri)<ife�i7
Add Km
Contributions
Employer $ 901,730
State 85,820
Plan Members 320.028
Total Conbibutions 1.307.578
Investment Income
Net Appreciation in Fair
Value of Investments 1,271,051
Interest 55.856
1,326,907
Less Investment Expense (45,435)
Net Investmerd kxxxne 1.281.472
Total Additions 2.589.050
Deductions
Benefits 122,837
Administrative Expenses 33.016
• r � o• r,•
Net lease 2.433.197
Net Assets Held in Trust for Pension Benefits
Beginning of Year -
As Previously Reported 4,377,530
Prior Period Adjustment 972.425
As Restated 5.349.955
End Of Year $ 7.783.152
The accompanying notes are an integral part of the financial statements.
5103
CITY OF OCOEE, FLORIDA
COMB{NED STATEME14 T OF COSH FLOWS
ALL PROPRIETARY FUND TYPES
Receipts From Customers
$ 5,238,496
Payments To Suppliers
(1,473,683)
Payments To Employees
(1.889,475)
Net Cash Provided By Operating Ac6vbes
1.875.338
Cash Flows From Noncapital Fkmncing Activities:
Operating Transfers Out
(728,559)
Receipts From Grants
24,267
Increase In Due To Other Funds
19.095
Net Cash Used in Nortcapital Financing Activities
(685.1971
Cash Flows From Captal And Related
Fnartartg Activb
Proceeds From Sale Of Property And Equipment
87,630
Purchase Of Property, Plant And Equipment
(333,920)
Additions To Construction In Progress
(1,296,658)
Principal Paid On Bonds And Leases
(300,545)
Interest Paid On Bonds And Leases
(578,314)
Proceeds from Bonds And Capital Leases
10,139,177
Capital Contributions Received
114,180
Cash Received On Assessments Receivable
60,518
Bond Issue Costs Paid
(304.987)
Na Cash Used In Capital And Related
Financing Activities
7,587.081
Cash Flows From 4mx;tirg Activities:
Sale of Investments
537,200
Purchase Of Investments
(7,705,920)
Interest On Investments
523.864
Net Cash Provided By Investing Aativbes
(6.644.856)
Net Increase In Cash And Cash EW4218M
2,132,366
Cash And Casts Equivakvn At Beginning Of Year 2.341,374
Cash And Cash Eqwalertts At End Of Year 4 473 740
Classified As:
Current Assets $ 744,805
Restricted Assets 3.728.935
Total $ 4,473,740
The accompanying notes are an integral part of the financial statements.
-��RNWOWA ow
Acrju nests Not Aifecd% Cash:
Depreciation
Amortization
Provision for Uncollectible Accounts
Charge In Assets And L obwbes:
Increase In Accounts Receivable
Increase In Accounts Payable
Increase In Accrued Expenses
(Decrease) In Retainage Payable
(Decrease)In Deferred Revenue
Increase In Customer Deposits
Total AdusttrerU
Net Cash Provided By OWMV Activities
Noncash Investing, Capital and Financing AoWmes:
Contributed Property, Plant and Equipment
Write-off Capital Contributions Billed in Prior Year
Increase in the Fair Value of Investments
-12-
$ 221.177
(35, 616)
18Z667
30,107
(64, 062)
(6,724)
6 902
1,654,161
$ 1,875,338
$ 684,610
(2,782)
342,240
This page intentionally left blank.
Police and Fire Protection
Approximately 53 law enforcement personnel and 44 fire protection personnel provide
24-hour police and fire protection.
Recreation
The City has ten parks and an 18 -hole public golf course. Major public recreational
facilities include tennis courts, outdoor basketball courts, a football field and baseball fields, as
well as several picnic areas, playground equipment, walking trails and boat launching facilities.
A new multi-purpose recreational complex is being constructed and will include a full-size
gymnasium, soccer and baseball/softball fields, a municipal swimming pool and nature trails. The
City has an active summer recreation program for children and many other organized sporting
and leisure activities for all its citizenry.
Budget Preparation
Pursuant to Florida law, on July 1, the Property Appraiser of Orange County certifies the
tax roll. On July 31, the City submits to the Property Appraiser the proposed millage as well as
the date, time, and place of the first public hearing. The first public hearing on the budget is held
by mid-September, at which time the City Commission reviews the recommended budget,
making adjustments as it deems appropriate. By September 30, the budget is adopted by
ordinance, and the millage rate and other revenues are set to fund the operating budget.
Employee's Defined Pension Plan and Trust
The City contributes to a defined benefit pension plan and trust. As of September 30,
1995, the plan was amended by separating the program into separate plans for general employees,
police officers and firefighters. The assets were allocated as follows:
General Employees $1,228,539
Police Officers and Firefighters $1,384,589
General Employees of the City are required to contribute 7.4% of salary to the plan. The
normal retirement benefit for General Employees is 2% of average final compensation for each
year of credited services. The normal retirement age is 60. Benefits fully vest on reaching five
(5) years of service. The plan for General Employees provides death but not disability benefits.
Police and Firefighters are required to contribute 7.6% of salary to the plan. The normal
retirement benefit for Police and Firefighters is 2.5% of average final compensation for each year
of credited services. The normal retirement age is the earlier of: (a) age 55 and ten (10) years of
credited service, or (b) age 52 and twenty-five (25) years of credited service.
A-3
Average compensation for both General Employees and Firefighters is based on the
highest five (5) years of last ten (10) years of service. These benefit provisions and all other
requirements are established by City ordinance.
ECONOMIC SUMMARY
Employment
Prior to 1967, the Orlando Metropolitan Statistical Area ("MSA") economy was based
upon agricultural and citrus products, tourism, light manufacturing and industries relating to the
space program at the Kennedy Space Center at Cape Canaveral. Since 1967, construction of Walt
Disney World, EPCOT Center, Disney -MGM Studios, Sea World, Universal Studios Florida and
other tourist attractions, together with increasing convention activity, have played an important
part in the local economy. This has resulted in a larger percentage of total employment in the
Orlando MSA consisting of trade and service jobs as compared to the national average.
Orange County Labor Force Estimates
1992-1998
Civilian Unem_nlovment Rate
Calendar Labor Orange State of United
Year Force Employed Unemployed Comity Florida States
1998
470,017
455,960
14,057
3.0%
4.3%
4.2%
1997
448,998
434,490
14,508
3.2
4.7
4.7
1996
437,031
420,210
16,821
3.8
5.3
5.5
1995
443,472
422,602
20,870
4.7
5.5
5.2
1994
426,155
401,471
24,684
5.8
6.6
6.1
1993
410,216
384,758
25,458
6.2
7.0
6.8
1992
398,327
368,940
29,387
7.4
8.2
7.4
Sources: 1990-1994: Florida Statistical Abstracts: 1995-1998: Florida Department of Labor
and Employment Security, Division of Jobs and Benefits, Bureau of Labor and
Market Performance Information.
A-4
Largest Employers in Orlando MSA Area - 1998
Name of Employer
# of Employees
1.
Walt Disney World Co.
40,000
2.
Orange County Public Schools
22,090
3.
Orange County Government
8,508
4
Florida Hospital
8,354
5.
Orlando Regional Healthcare System
8,100
6.
Universal Studios
6,000
7.
Lockheed Martin
5,920
8.
AT&T Information Systems
5,000
9.
Publix Supermarkets, Inc.
4,878
10.
University of Central Florida
4,655
11.
Central Florida Investments
4,000
Source: Economic Development Commission of Mid -Florida, Inc., O000mmity Orland
1998. School Board and Governmental Human Resources Department.
Largest Employers in the City of Ocoee, Florida - 1998
Name of Employer
# of Employees
1.
Health Central
529
2.
Sysco Foods, Inc.
500
3.
Florida Auto Auction
426
4.
Publix Supermarkets, Inc.
325
5.
Dillard's
305
6.
Gayfer's
283
7.
The City of Ocoee
270
8.
Sears
232
9.
JCPenney's
190
10.
Winn Dixie Stores
180
11.
Wal-Mart
170
Source: City of Ocoee, Florida.
FEW
In the City there are several major non-governmental employers, including Health Central
Hospital, Sysco Foods, Inc., the Florida Auto Auction, Publix Supermarkets, and the West Oaks
Mall. The City's industrial base is diverse, ranging from stained glass artistry to casket and burial
vault production.
Personal Income Per Capita
1990-1995
Year Orange CountX
1995
$21,868
1994
20,412
1993
19,673
1992
18,917
1991
18,154
1990
17,916
Sources: 1990-1994:
1995:
Average Household EBI
Median Household EBI
Per Capita EBI
Less Than $20,000
$20,000 - $34,999
$35,000 - $49,999
$50,000 and over
State of Florida
$22,764
21,767
20,961
19,795
19,326
18,906
1996 Florida Statistical Abstract
1997 Florida Statistical Abstract.
Effective Buying Income
January 1, 1996
Orange County
$43,671
34,614
16,418
25.0%
25.6%
19.6%
29.8%
United States
$21,979
21,696
20,812
20,147
19,201
18,666
State of Florida
$40,787
30,830
16,036
30.9%
25.3%
17.8%
26.0%
United States
$42,191
33,482
15,555
30.0%
22.9%
18.0%
29.1%
Source: Market Statistics, 1996 Demographics USA - County Edition.
Sales and Marketing Management, 1998 Survey of Buying Power.
Wi
Education
The Orlando area has four major institutions of higher learning: University of Central
Florida (a four-year state university with an enrollment of 28,500 full and part-time students);
Rollins College (the oldest four-year institution of higher learning in Florida, an independent,
coeducational, liberal arts college with an enrollment of more than 1,400 day -time students and
3,356 total students); Seminole Community College (a two-year undergraduate institution with
approximately 35,000 students annually); and Valencia Community College (the fourth largest
of Florida's 28 community colleges, a two-year undergraduate institution covering six campuses
with over 60,000 full and part-time students).
Public School enrollment for the 1996-1997 school year in Orange County was 235,879
(from County School Board 1996-1997 School Year Statistics).
Source: Economic Development Commission of Mid -Florida, Inc., 1996 Opportune
Orlando.
Transportation
The Orlando MSA is primarily served by Orlando International Airport ("OIA"), which
is the 16th busiest domestic airport facility and the 24th busiest world airport facility. OIA is the
largest port of entry for international passengers and fastest growing major international airport
in the world, accommodating more than 2.5 million passengers on international flights from
Europe, Mexico, Canada, the Caribbean and Central and South America. Air passengers have
increased from 18.4 million in 1991 to 26.7 million in 1998. OIA is the third largest airport in
the country in terms of property size.
Eighty -Six scheduled carriers serve OIA with 1,050 departures and arrivals daily, including
direct and international flights. More than 100 U.S. and international cities are served by direct
and nonstop flights from OIA, the most of any airport in Florida. In addition to scheduled
airlines, more than 30 scheduled charter companies serve the Orlando MSA.
The Orlando MSA is also served by three general aviation airports: Orlando Executive
Airport, Orlando Sanford Airport and Kissimmee Municipal Airport.
The Orlando MSA is also served by 35 common -carrier truck lines, most of which have
local terminals and several parcel delivery and package express services covering Orange County
and neighboring communities. Greyhound, Gray Line, Superior and Trailways Bus Lines offer
charter, express and passenger services. Both passenger and freight rail systems provide service
to the area. Amtrak currently operates two trains daily between New York and South Florida
which travel through Metro Orlando. Amtrak stops at four stations in the area: Sanford, Winter
A-7
Park, Orlando and Kissimmee. Rail passenger stations in the area are among the busiest in the
southeast, with approximately 400 Amtrak passengers arriving and departing daily. CSX
Transportation moves freight between north and south Atlantic points and connects with all
major rail lines in the United States.
Three major limited -access highways bisect the area: (1) Interstate 4 runs east and west
across Florida from Daytona Beach and Interstate 95 on the Atlantic coast of Florida to Tampa
and Interstate 75 near the Gulf coast of Florida; (2) Florida's Turnpike runs north and south from
Interstate 75 near Ocala, Florida to Miami; and (3) Interstate 75, which extends through Georgia
and the midwestern part of the United States. Other highways serving the area include U.S.
Highways 441, 17-92, 27 and 192, as well as numerous state roadways and toll roads. The Bee
Line Expressway (State Road 528) provides direct limited access to Kennedy Space Center, Port
Canaveral and the beaches along the Atlantic coast of Florida. The East-West Expressway (State
Road 408) expedites traffic through the metropolitan Orlando and is connected by full
interchanges with Interstate 4 and with Florida's Turnpike. To address road transportation needs,
four mid -Florida county governments have combined efforts to construct a 100 -mile, limited -
access beltway encircling metropolitan Orlando called the Central Florida Greeneway (the
"GreeneWay").
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
W-1
Public transportation is provided by 235 buses run by the nationally recognized
transportation system serving Orange, Seminole and Osceola Counties, known as "LYNX."
Included in its regularly served 47 routes are stops at shopping centers, government complexes,
schools, financial institutions, industrial and commercial centers and tourist attractions. Another
transit route, the "Lymmo," provides free ridership in downtown Orlando through a 3 -mile loop
in the urban core of the City.
Source: Economic Development Commission of Mid -Florida, Inc., 1998 Opportunity
Orlando and the City of Ocoee, Florida.
Levy of Taxes
Each year the County Property Appraiser is required to certify to each taxing authority,
the aggregate taxable value of all property within the jurisdiction of the taxing authority, as well
as the prior year's tax revenues, for use in connection with determination of the forthcoming
budget and millage levy. In connection with such determination, the taxing authority must hold
a public hearing with respect to the adoption of a tentative budget and millage levy and another
hearing relating to adoption of the final budget and millage levy.
City of Ocoee, Florida
Property Tax Rates and Tax Levies
Direct and Overlapping Governments
1993-1997
Millage Rates (per $1,000 of taxable value)
Fiscal
City of Orange
School
Year
Ocoee Coun
oar
Total
1997
4.00 5.2889
9.077
18.3659
1996
4.00 5.2889
9.375
18.6639
1995
4.00 5.2889
9.324
18.6129
1994
4.00 5.2889
8.930
18.2189
1993
4.00 5.2889
8.930
18.2189
Sources:
Comprehensive Annual Financial Report of the City of Ocoee, Florida for the
Fiscal Year Ended September 30, 1997.
A-9
Taxes Levied and Collected
City of Ocoee, Florida
1993-1998
Source:
1993-1995: Comprehensive Annual Financial Report of the City of Ocoee,
Florida for the Fiscal Year Ended September 30, 1995.
1996-1998: City of Ocoee, Florida.
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Wrl,
Taxable
Total
% of Total
Fiscal
Assessed
Tax
Total Tax
Collections
Year
Valuation
Levy
Collections
Delinquent
to Lew
1998
$751,226,256
$3,004,905
N/A
N/A
N/A
1997
582,355,145
2,329,421
$2,243,488
$1,388
96.31%
1996
505,656,888
2,022,628
1,953,410
2,247
96.58
1995
469,310,003
1,877,240
1,803,405
—
96.07
1994
424,437,664
1,697,751
1,647,742
1,753
97.05
1993
375,807,867
1,503,231
1,455,968
4,941
96.86
Source:
1993-1995: Comprehensive Annual Financial Report of the City of Ocoee,
Florida for the Fiscal Year Ended September 30, 1995.
1996-1998: City of Ocoee, Florida.
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Wrl,
City of Ocoee, Florida
Schedule of Ten Largest Taxpayers
1998
Taxj2W
Type of Business
Valuation
Percentage
1. GGP/Homan Inc.
West Oaks Mall
$ 64,187,905
8.3%
2. Merchantile Properties, Inc.
Developer
11,302,187
1.5
3. Manhein Remarketing, L.P.
Developer
10,701,814
1.4
4. Oak Forest Partners, Ltd.
Developer
10,458,431
1.4
5. Dillard Department Stores, Inc.
Retail Sales
10,457,550
1.4
6. Good Homes Plaza
Shopping Center
9,564,599
1.2
7. Sears Roebuck & Co.
Retail Sales
8,088,499
1.1
8. West Orange Health Care
Health Care
7,890,085
1.0
9. Lake Olympia Square
Shopping Center
6,653,105
0.9
10. Westlake Partners, Ltd.
Developer
6,545.421
0.9
Total Taxable Assessed Value of 10 Largest Taxpayers
$145,849,596
19.0
Total Taxable Assessed Value of Other Taxpayers
623.050.514
81.0
Total Taxable Value of All Taxpayers
768.900.110
100.0%
Source: Orange County Property Appraisers Office
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A-11
City of Ocoee, Florida
Construction Property Value and Bank Deposits
1992-1997
(1) Source: City of Ocoee Building Department
(2) Source: Florida Bankers Association. Figures represent deposits for Orange County as of
September 30 of such year.
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A-12
Residential Construction(')
Bank Deposit(Z)
Number
of Units
an thousands)
Single
Multi-
Property
Savings
Year
Family
anvil
Value
Banks
&Loans
1997
497
0
$44,475,342
$7,128,190
$ 793,849
1996
366
0
33,871,752
6,937,918
859,921
1995
331
0
28,836,036
6,147,414
828,351
1994
402
0
25,211,374
5,874,598
1,078,501
1993
411
0
36,188,257
5,743,997
1,133,135
1992
438
0
36,622,069
5,614,174
2,936,546
(1) Source: City of Ocoee Building Department
(2) Source: Florida Bankers Association. Figures represent deposits for Orange County as of
September 30 of such year.
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A-12
City of Ocoee, Florida
Debt Statement
September 30, 1997
Direct City Debt
Capital Improvement Revenue Bonds,
Series 1991 due 10/1/2011
Transportation Refunding and
Improvement Revenue Bonds,
Series, 1990 due 10/1/2015
Stormwater Utility Bonds, Series 1996
Water and Sewer System Refunding
and Improvement Bonds,
Series 1993 due 10/1/2017
Capital Improvement Revenue
Promissory Note, Series 1996
Due 01/01/2012
Total Direct Debt
Overlapping Debt - Orange County
Library District Library Refunding
Bonds, Series 1993
Total Overlapping Debt
% City's Share of Overlapping Debt
City's Share of Overlapping Debt
General
Obligation
Debt
$9.205.000
92 0
1.43%
$ 131,632
Total Direct and Overlapping Debt 131 632
Sources: City of Ocoee and Orange County, Florida.
A-13
Non -Self Self -
Supporting Supporting
Debt Debt
$2,205,000
6,215,000
$ 2,200,000
7,850,000
$8,420,000 $14,660,000
8 420 000 14 660 000
City of Ocoee, Florida
Comparative Ratios of Bonded Debt
September 30, 1997
1. 1997 Population
2. 1997 Total Assessed Valuation
3. 1997 Taxable Assessed Valuation
20,560
$617,377,771
$582,355,145
4. Direct and Overlapping General Obligation Debt Per Capita $6.41
5. Direct and Overlapping General Obligation Debt and Self -Supporting Debt
Per capita $713.04
As a percent of total assessed valuation 1.97%
As a percent of taxable assessed valuation 2.24%
6. Direct and Overlapping General Obligation Debt and Non -Self Supporting Revenue Debt
Per capita $415.94
As a percent of total assessed valuation 1.15%
As a percent of taxable assessed valuation 1.31%
Source: City of Ocoee, Florida.
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F.W,I
APPENDIX B
AUDITED FINANCIAL STATEMENTS OF THE CITY
[This page intentionally left blank]
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF OCOEE, FLORIDA
FOR THE
FISCAL YEAR ENDED SEPTEMBER 30, 1997
Prepared by: Finance Department
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CITY OF OCOEE, FLORIDA
COMMISSION -MANAGER FORM OF GOVERNMENT
CITY COMMISSION
HONORABLE S. SCOTT VANDERGRIFT, Mayor
DANNY HOWELL, Commissioner
SCOTT ANDERSON, Commissioner
CITY MANAGER
Ellis Shapiro
CITY CLERK
Jean Grafton
SCOTT GLASS, Commissioner
NANCY PARKER, Commissioner
CITY ATTORNEY
Paul Rosenthal
CITY AUDITOR
McDirmit, Davis, Lauteria,
Puckett, Vogel & Company, P.A.
FINANCE DIRECTOR
Wanda Horton
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INTRODUCTORY SECTION
This section contains the following subsections:
Table of Contents
Letter of Transmittal
City of Ocoee Organizational Chart
Certificate of Achievement
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE CITY OF OCOEE, FLORIDA
FOR THE YEAR ENDED SEPTEMBER 30, 1997
TABLE OF CONTENTS
INTRODUCTORY SECTION
PAGE NO.
TABLE OF CONTENTS .................................... i -iv
LETTER OF TRANSMITTAL ................................. v-xvi
CITY OF OCOEE ORGANIZATIONAL CHART .................... xvii
CERTIFICATE OF ACHIEVEMENT
II. FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT .......................... xix-xx
GENERAL PURPOSE FINANCIAL STATEMENTS
(COMBINED STATEMENTS - OVERVIEW)
COMBINED BALANCE SHEET - ALL FUND TYPES AND
ACCOUNT GROUPS ...................................
1-4
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - ALL GOVERN-
MENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS .......
5-6
COMBINED STATEMENT OF REVENUES AND EXPENDITURES -
BUDGET AND ACTUAL - GENERAL AND SPECIAL
REVENUE FUNDS .....................................
7-8
COMBINED STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY
FUND TYPES .........................................
9
COMBINED STATEMENT OF CHANGES IN PENSION FUND
NET ASSETS .........................................
10
COMBINED STATEMENT OF CASH FLOWS - ALL PRO-
PRIETARY FUND TYPES ................................
11-12
NOTES TO FINANCIAL STATEMENTS .......................
13-48
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE CITY OF OCOEE, FLORIDA
FOR THE YEAR ENDED SEPTEMBER 30, 1997
TABLE OF CONTENTS - CONTINUED
COMBINING AND INDIVIDUAL FUND AND ACCOUNT
GROUP STATEMENTS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL ...............
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET ........................... .
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES .....................
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET .......................... .
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES .....................
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET .......................... .
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES .....................
ENTERPRISE FUNDS
COMBINING BALANCE SHEET ...........................
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS ..................
COMBINING STATEMENT OF CASH FLOWS .................
TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET .......................... .
COMBINING STATEMENT OF PENSION FUND NET ASSETS
COMBINING STATEMENT OF CHANGES IN PENSION FUND
NET ASSETS
STATEMENT OF CHANGES IN ASSETS AND
LIABILITIES - AGENCY FUND ...........................
PAGE NO.
�r
51-52
53-54
55
56
57-58
59-60
61-62
63
64-65
66
67
68
69
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE CITY OF OCOEE, FLORIDA
FOR THE YEAR ENDED SEPTEMBER 30, 1997
TABLE OF CONTENTS - CONTINUED
GENERAL FDCED ASSETS
SCHEDULE OF CHANGES IN FIXED ASSETS -
BY FUNCTION AND ACTIVITY .......................... .
SUPPLEMENTARY INFORMATION
SCHEDULE OF REVENUES AND EXPENSES -
BUDGET AND ACTUAL - WATER AND WASTEWATER
0 & M DEPARTMENT .................................
SCHEDULE OF REVENUES AND EXPENSES -
BUDGET AND ACTUAL - SOLID WASTE FUND ..............
STATISTICAL SECTION
GENERAL GOVERNMENTAL EXPENDITURES AND OTHER
FINANCING USES ....................................
GENERAL GOVERNMENTAL REVENUES AND OTHER
FINANCING SOURCES ................................
TAX REVENUES BY SOURCE ............................
PROPERTY TAX LEVIES AND COLLECTIONS ................
ASSESSED AND ESTIMATED VALUE OF TAXABLE
PROPERTY NET OF EXEMPTIONS .......................
PROPERTY TAX RATES AND TAX LEVIES DIRECT
AND OVERLAPPING GOVERNMENTS .....................
SPECIAL ASSESSMENT COLLECTIONS ....................
RATIO OF NET GENERAL OBLIGATION BONDED
DEBT TO ASSESSED VALUE AND NET BONDED
DEBT PER CAPITA ...................................
LEGAL DEBT MARGIN ..................................
COMPUTATION OF DIRECT AND OVERLAPPING
GENERAL OBLIGATION DEBT ..........................
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR GENERAL OBLIGATION BONDED DEBT TO
TOTAL GENERAL GOVERNMENTAL EXPENDITURES
AND OTHER USES ...................................
PAGE NO.
70
71
72
73-74
75-76
77
78
79-80
81
82
83
84
85
�- M
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE CITY OF OCOEE, FLORIDA
FOR THE YEAR ENDED SEPTEMBER 30, 1997
TABLE OF CONTENTS - CONTINUED
PAGE NO.
Ill. STATISTICAL SECTION - CONTINUED
REVENUE BOND COVERAGE ............................ 87
DEMOGRAPHIC STATISTICS ............................. 88
PROPERTY VALUE, CONSTRUCTION AND BANK
DEPOSITS......................................... 89-90
SCHEDULE OF TEN LARGEST TAXPAYERS ................. 91
MISCELLANEOUS STATISTICAL DATA ...................... 92-93
SCHEDULE OF INSURANCE IN FORCE ..................... 94
IV. INTERNAL CONTROL AND COMPLIANCE SECTION
INDEPENDENT AUDITOR'S REPORT ON INTERNAL
CONTROL STRUCTURE BASED ON AN AUDIT OF
GENERAL PURPOSE FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS .................. 95-98
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE
BASED ON AN AUDIT OF GENERAL PURPOSE
FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENTAUDITING
STANDARDS ....................................... 97-98
IV
power of the City or taxation in any form on any real or personal property of or in the City,
or to use any other funds of the City other than the Pledged Revenues, for the payment of the
principal of, redemption premium, if any, and interest on the Series 1998 Bonds or the malting
of any reserve or other payments in connection therewith.
The Resolution establishes the Revenue Fund, the Debt Service Fund (which includes the
Principal Account, the Interest Account, the Redemption Account and the Reserve Account), the
Construction Fund and the Public Service Taxes Fund. All such funds and accounts will be held by
the City as trust funds, but no independent trustee has been appointed to hold the moneys in such
funds for the benefit of the Holders of the Series 1998 Bonds. For information on all funds and
accounts and the disposition and flow of revenues, see "APPENDIX C - COPY OF THE
RESOLUTION - Funds and Accounts; Flow of Funds" attached hereto.
The designation and establishment of the various funds and accounts by the Resolution does
not require the establishment of any completely independent, self -balancing funds as such tern is
commonly defined and used in government accounting, but rather is intended solely to constitute a
designation of certain Pledged Revenues for certain purposes and to establish certain priorities for
application of such revenues, as provided in the Resolution.
Local Option Gas Tax
Pursuant to the Resolution, Local Option Gas Tax revenues distributed to the City, including
any local option gas taxes that are levied in excess of such taxes currently authorized, are pledged
on a parity basis to the repayment of any Bonds issued pursuant to the Resolution, including the
Series 1998 Bonds.
The Local Option Gas Tax is received by the City under the authority of Florida Statutes,
Chapter 336. Pursuant to Section 336.025 (1)(a), Florida Statutes, each county in the State is
authorized to levy a local option fuel tax of up to six cents (in whole penny increments) per gallon
on every gallon of motor fuel and diesel fuel sold in the county (the "Local Option Gas Tax"), and
distribute such tax among itself and the municipalities in the county. The Local Option Gas Tax may
be levied by an ordinance adopted by a majority vote of the governing body of the county or by
referendum. The Local Option Gas Tax may be levied by a county for a period not to exceed 30
years and must be levied before July 1 of each year to be effective on January 1 of the following year.
The State Department of Revenue collects and deposits the tax into the Local Option Gas Tax
Trust Fund (the "Gas Tax Fund"). Monies in the Gas Tax Fund, net of service charges and fees
collected by State agencies pursuant to law, are distributed monthly by the State to each county.
Local Option Gas Tax revenues are distributed by the county amongst itself and the municipalities
in the county based on either an interlocal agreement between the county and one or more
municipalities representing a majority of the population of the incorporated area within the county,
or historical transportation expenditures.
Disbursements from the Gas Tax Fund may be used only for the following programs:
(a) public transportation operations and maintenance; (b) roadway and rights-of-way maintenance
and equipment and structures used primarily for the storage and maintenance of such equipment;
(c) roadway and rights-of-way drainage; (d) street lighting; (e) traffic signs, traffic engineering,
signalization and pavement markings; (f) bridge maintenance and operation; and (g) debt service and
current expenditures for transportation capital projects including road construction and
reconstruction.
The County, pursuant to Ordinance No. 83-26, adopted by the board of county
commissioners (the "Board") of the County on June 20, 1983 and Ordinance No. 85-22, adopted by
the Board on July 24, 1985, currently imposes a Local Option Gas Tax of six cents per gallon for a
30 year period ending in 2015. Local Option Gas Tax revenues are currently distributed by the
County amongst itself and the municipalities within the County pursuant to that certain Orlando -
Orange County 1997 Interlocal Agreement on Local Fuel (Gas) Tax Distribution, dated April 8, 1997
(the "Interlocal Agreement"), between the County and the City of Orlando ("Orlando"). Pursuant to
the Interlocal Agreement, Local Option Gas Tax revenues are distributed during an initial four year
transition period (fiscal years 1998 through 2001) based on percentages set forth in an exhibit to the
Interlocal Agreement described in the next paragraph. After such four year transition period, Local
Option Gas Tax revenues will be distributed based on the percentage of the County's and each
municipality's respective estimated population in comparison to the total estimated population of
the County. The Interlocal Agreement contains a covenant between Orlando, the County and to the
other municipalities described in the Interlocal Agreement (including the City), to take no action
which would impair the rights of any party under contracts entered into by such entities which
anticipate the distribution and receipt of the Local Option Gas Tax proceeds.
Pursuant to the Interlocal Agreement, the following percentages of Local Option Gas Tax
revenues will be disbursed to the City for the initial four year period covered by the Interlocal
Agreement:
Fiscal Ye az Percentage
1998
2.57%
1999
2.63
2000
2.68
2001
2.81
Following the initial four year period, Local Option Gas Tax revenues will be distributed to the City
based on the percentage of total estimated County population represented by the total estimated
population of the City as of April 1 of the preceding fiscal year. The City's April, 1998 estimated
population constituted 2.71% of the estimated total population of the County.
Public Service Taxes
Pursuant to the Resolution, Public Service Taxes levied by the City are pledged on a parity
basis to the repayment of. (a) any Bonds issued pursuant to the Resolution, including the Series 1998
Bonds, and (b) Public Service Tax Obligations issued pursuant to the Resolution. Public Service
Taxes are levied and collected by the City pursuant to Section 166.231, Florida Statutes, and
Ordinance No. 330 duly enacted by the City on December 20, 1955 and Ordinance No. 542 duly
enacted by the City on October 19, 1971 (collectively the "Public Service Tax Ordinance"). The lien
on Public Service Taxes shall be released and extinguished under the circumstances described herein
under "SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 1998 BONDS - Release
of Lien on Public Service Tax."
Florida Statutes, Section 166.231 authorizes municipalities to impose a tax on purchases of
electricity, metered natural gas, metered or bottled liquified petroleum natural gas, metered or bottled
manufactured gas, water service and telecommunications service delivered in the corporate limits
of the City. The tax is in an amount equal to ten percent (10%) of all payments received by the seller
of any such service, except for telecommunications services which originate and terminate within
the State, in which case the tax is limited to seven percent. A municipality may levy a public service
tax on other competitive services as defined in the ordinance imposing the tax on a comparable based
and at the same rates, provided however, that fuel oil shall be taxed at a rate not to exceed four cents
per gallon. The tax is collected by the provider of the service and remitted to the municipality in the
manner prescribed by ordinance, less one percent of the amount of tax collected, which the service
provider is allowed to retain.
Pursuant to the Public Service Tax Ordinance it is the duty of every seller of electricity, water
service, metered or bottled gas, whether natural liquified petroleum gas or manufactured, fuel oil,
telephone service and telegraph service within the geographic boundaries of the City, to collect from
the purchaser, for the use of said City, the tax levied pursuant to the Public Service Tax Ordinance,
at the time of collecting the selling price thereof, and to report and pay over, on or before the 10th
day of each calendar month, unto the City all such taxes levied and collected during the preceding
month.
The Public Service Tax Ordinance provides that the sale of natural gas to a public or private
utility, including a utility operated by the City or other municipal corporation, and rural electric
cooperative associations, either for resale or for use as a fuel in the generation of electricity is not
deemed to be a utility service and purchasers thereof under such circumstances shall be exempt from
the payment of the Public Service Taxes.
All federal, State of Florida, county and municipal governments and their commissions and
agencies and all public schools are exempt from the payment of the Public Service Taxes.
Release of Lien on Public Service Tax
The lien of the holders of outstanding Bonds on the Public Service Taxes shall be released
and extinguished upon receipt by the City of a certificate or an opinion of an independent certified
public accountant which certifies or opines, as applicable, that the Local Option Gas Tax received
by the City during each of the two preceding complete fiscal years shall have been equal to not less
than 135% of the Maximum Bond Service Requirement on the Outstanding Bonds as of the date of
such certificate or opinion, provided however, that such lien shall not be released unless the
applicable laws with respect to the Local Option Gas Taxes are amended to extend the period that
such taxes may be imposed to a date which equals or exceeds the final maturity date of all
Outstanding Bonds. See "SECURITY AND SOURCE OF PAYMENT FOR THE 1998
BONDS - Release of Lien on Public Service Tax" herein.
Additional Covenants of the City
Pursuant to the Resolution, the City has covenanted that it will diligently enforce and collect
the Pledged Revenues and will take steps, actions and proceedings for the enforcement and
collection of such Pledged Revenues as shall become delinquent to the full extent permitted or
authorized by law; and will maintain accurate records with respect thereof; and will not repeal or
adversely amend its Charter, ordinances, resolutions or interlocal agreements relating to the Pledged
Revenues so as to impair the power and obligations of the City to collect such Pledged Revenues.
The City further covenants that it shall not repeal or adversely amend its Charter, ordinances,
resolutions or interlocal agreements relating to the Pledged Revenues so as to impair the power and
obligations of the City to collect such Pledged Revenues.
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0
Historical and Projected Coverage of the Maximum Bond Service Requirement
Historical Local Option Gas Taxes and Public Service Taxes collected for the Fiscal Years
ending September 30, 1993 through 1997, projected Local Option Gas Taxes and Public Service
Taxes collected for the Fiscal Year ended September 30, 1998 and the historical and projected
coverage afforded thereby based on the Maximum Bond Service Requirement for the Bonds are set
forth below:
Coverage Based
Coverage for Fiscal Years ending September 30, 1993 through 1997 was calculated based on the maximum
debt service requirement for the Series 1990 Bonds ($623,302). For Fiscal Year 1998, coverage was calculated
based on the sum of the approximate combined maximum debt service requirement for the Series 1998 Bonds
and the unrefimded portion of the Series 1990 Bonds ($1,294,603).
(2) First year under the Interlocal Agreement. Collections in prior years were based on the 1980 census population
figures. See "SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 1998 BONDS - Local Option
Gas Tax" herein.
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Local
Public
Total Local
on Maximum
Fiscal
Option
Service
Option Gas
Debt Service
Years Ending
Gas Tax
Taxes
Tax and Public
Requirements
September 30
Collected
Collected
Service Taxes
For the Bonds(')
1993
$329,621
$1,003,064
$1,332,685
2.14%
1994
329,968
1,158,359
1,488,327
2.39
1995
339,910
1,285,064
1,624,974
2.61
1996
361,581
1,487,498
1,849,079
2.97
1997
386,850
1,729,244
2,116,094
3.39
1998
718,000(2)
1,798,200
2,516,200
1.93
Coverage for Fiscal Years ending September 30, 1993 through 1997 was calculated based on the maximum
debt service requirement for the Series 1990 Bonds ($623,302). For Fiscal Year 1998, coverage was calculated
based on the sum of the approximate combined maximum debt service requirement for the Series 1998 Bonds
and the unrefimded portion of the Series 1990 Bonds ($1,294,603).
(2) First year under the Interlocal Agreement. Collections in prior years were based on the 1980 census population
figures. See "SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 1998 BONDS - Local Option
Gas Tax" herein.
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The amounts and the availability of the Local Option Gas Taxes and the Public Service Taxes
are subject to change (including reduction or elimination) as a result of changes in State or Federal
law or such factors as changing economic conditions, reduction in gas consumption resulting from
a shortage in supply or an increase in the price of oil, changing physical or social characteristics of
the City, and other future conditions or events not presently ascertainable. Subject to certain
conditions set forth in the Resolution, the lien of the Bonds on Public Service Taxes may be released
and discharged as described in "SECURITY AND SOURCE OF PAYMENT FOR THE 1998
BONDS - Release of Lien on Public Service Tax" herein and the Local Option Gas Tax currently
expires in 2015. The City is unaware of any State or federal laws that are currently pending which
would reduce or eliminate the amounts and availability of any of the sources of Pledged Revenues.
Municipal Bond Insurance
MBIA has committed to issue the Policy which will insure the timely payment of the
principal of and interest on the Series 1998 Bonds at the stated maturity, mandatory sinking fund
redemption and payment dates thereof. The insurance extends for the term of the Series 1998 Bonds
and cannot be canceled by MBIA. Payment under the Policy is subject to the conditions described
under the caption "MUNICIPAL BOND INSURANCE."
Reserve Account
The Resolution provides for the establishment and maintenance of a separate subaccount in
the Reserve Account for each Series of Bonds issued pursuant to the Resolution. Upon delivery of
the Series 1998 Bonds, the City shall deposit a surety bond issued by MBIA in an amount equal to
the Reserve Requirement to the Reserve Account established for the benefit of the Series 1998
Bonds. Pursuant to the Resolution, the "Reserve Requirement" is defined as the lesser of. (i) the
Maximum Debt Service Requirement, (ii) one and one-quarter times the Average Annual Debt
Service Requirement, or (iii) such amount as will not adversely affect the exclusion of interest on
the Series 1998 Bonds from the gross income of the holders of the Series 1998 Bonds for purposes
of Federal income taxation.
Proceeds of the surety bond on deposit in the subaccount of the Reserve Account established
for the Series 1998 Bonds shall be applied in accordance with the provisions of the Resolution solely
for the purpose of the payment of principal of, or interest on the Series 1998 Bonds for which such
account was established and for no other Series of Bonds.
Any withdrawals from the Reserve Account shall be subsequently restored from the first
moneys available in the Revenue Fund, on a pro rata basis as to all reserve accounts, after all
required current applications and allocations to the Debt Service Fund, including all deficiencies for
prior payments, have been made in full. Notwithstanding the foregoing, in no event shall the City
be required to deposit into any reserve account established under the Resolution (including the
Reserve Account) an amount greater than that amount necessary to ensure that the difference
between the Reserve Requirement for the Series of Bonds for which such account was established
D
and the amounts on deposit in such account on the date of calculation shall be restored not later than
60 months after the date of such deficiency (assuming equal monthly payments into such account
for such 60 month period).
Upon the issuance of any Additional Parity Obligations under the terms, limitations and
conditions as provided in the Resolution, any additional deposit to the Reserve Account shall be in
such amount as shall be determined by a resolution of the City adopted prior to the issuance of such
Additional Parity Obligations.
Additional Parity Obligations
Additional Parity Obligations, payable from Pledged Revenues on a parity with the Series
1998 Bonds, may be issued under the Resolution upon satisfaction of the following conditions:
(1) An independent certified public accountant shall certify or opine at the time
of the issuance of the Additional Parity Obligations that no Event of Default exists under the
Resolution.
(2) Such independent certified public accountant shall certify or opine at the time
of the issuance of the Additional Parity Obligations that the Local Option Gas Tax, together
with the Public Service Taxes (unless the lien on the Public Service Taxes is previously
released pursuant to the provisions of the Resolution), adjusted as provided below, received
by the City during (i) the Fiscal Year immediately preceding the Fiscal Year in which the
Additional Parity Obligations are to be issued or (ii) during two of the last three full Fiscal
Years immediately preceding the Fiscal Year in which the Additional Parity Obligations are
proposed to be issued shall have been equal to not less than 135% of the Maximum Bond
Service Requirement on the Outstanding Bonds and the proposed Additional Parity
Obligations during any Fiscal Year in which the Additional Parity Obligations to be issued
will be outstanding.
The Local Option Gas Taxes and, if not previously released from the lien of the Resolution,
the Public Service Taxes for such period may be adjusted to include the estimated Local Option Gas
Taxes or Public Service Taxes, as certified or opined to by an independent certified public
accountant, that the City would have received from areas that the City has annexed prior to the
issuance of the Additional Parity Obligations and which are not fully reflected in such period.
The Local Option Gas Taxes and, if not previously released from the lien of the Resolution,
the Public Service Taxes for such period may also be adjusted to include the estimated Local Option
Gas Taxes or Public Service Taxes, as certified or opined to by an independent certified public
accountant, that the City would have received during such period due to increase in the rate or rates
or a modification in the method of distribution of such taxes effected during such period and not
fully reflected in such period.
The resolution authorizing the issuance of the Additional Parity Obligations shall recite that
all of the covenants contained in the Resolution will be applicable to such Additional Parity
Obligations, except as otherwise provided in the Resolution.
No Additional Parity Obligations with interest payable at a variable rate may be issued
without the consent of MBIA so long as the Policy with respect to the Series 1998 Bonds shall be
in effect and MBIA shall not be in default thereunder.
Issuance of Public Service Tax Obligations
The City may issue Public Service Tax Obligations under the Resolution, which shall be
payable on a parity with Public Service Taxes required to be deposited to the Debt Service Fund
under the Resolution, upon the conditions and in the manner provided herein:
(1) There shall be obtained and filed with the City an opinion or a certificate of
an independent certified public accountant to the effect that the historical Local Option Gas
Taxes and Public Service Taxes (adjusted as provided below) received by the City during (i)
the Fiscal Year immediately preceding the Fiscal Year in which the Public Service Tax
Obligations are proposed to be issued or (ii) two of the last three full Fiscal Years
immediately preceding the Fiscal Year in which the Public Service Tax Obligations are
proposed to be issued shall have been equal to not less than 135% of the Maximum Bond
Service Requirement on all Outstanding Bonds.
(2) There shall be obtained and filed with the City an opinion or a certificate of
an independent certified public accountant to the effect that the portion of the historical
Public Service Taxes adjusted as provided below received by the City during (i) the Fiscal
Year immediately preceding the Fiscal Year in which the Public Service Tax Obligations are
proposed to be issued or (ii) two of the last three Fiscal Years immediately preceding the
Fiscal Year in which the Public Service Tax Obligations are proposed to be issued and not
required to be used to provide the coverage requirements set forth in (1) above shall have
been equal to not less than 120% of the maximum annual debt service requirement on any
outstanding Public Service Tax Obligations and the Public Service Tax Obligations with
respect to which such certificate is made.
The Local Option Gas Tax and the Public Service Taxes for such period may be adjusted to
include the estimated Local Option Gas Tax or Public Service Taxes, as applicable, as certified or
opined to by an independent certified public accountant, that the City would have received from
areas that the City has annexed prior to the issuance of the Public Service Tax Obligations and not
fully reflected in such period.
The Local Option Gas Tax and the Public Service Taxes for such period may also be adjusted
to include the estimated Local Option Gas Tax or Public Service Taxes, as applicable, as certified
or opined to by an independent certified public accountant, that the City would have received during
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such period due to an increase in the rate or rates or a modification in the method of distribution of
such taxes effected during such period and not fully reflected in such period.
An independent certified public accountant shall certify or opine at the time of issuance of
the Public Service Tax Obligations that no Event of Default exists under the Resolution.
No Public Service Tax Obligations with interest payable at a variable rate may be issued
without the consent of MBIA so long as the Policy with respect to the Series 1998 Bonds shall be
in effect and MBIA shall not be in default thereunder. Additionally, no Public Service Tax
Obligations may be issued which include the power to accelerate the principal of and the redemption
premiums, if any, on such Public Service Tax Obligations for so long as Bonds shall be Outstanding
under the Resolution.
Upon the release and extinguishment of the lien on the Public Service Taxes, as set forth in
the Resolution, the above restrictions on the City's ability to issue Public Service Tax Obligations
shall be of no further force and effect.
Investment
Money on deposit in the Construction Fund, the Revenue Fund, the Public Service Taxes
fund and the Debt Service Fund, excluding the Reserve Account, may be invested and reinvested in
Investment Securities which mature not later than the dates on which the moneys on deposit therein
will be needed for the purpose of such fund. Moneys in each subaccount in the Reserve Account, if
any, may be invested and reinvested in Investment Securities maturing not later than the latest
maturity date of any Bond for which such subaccount was established. All income on such
investments, except for income on investments in the Reserve Account and the Construction Fund,
shall be deposited in the respective funds and accounts from which such investments were made and
be used for the purposes thereof unless and until the amount required to be on deposit is on deposit
therein, and thereafter shall be deposited in the Revenue Fund. Investment income on each
subaccount in the Reserve Account shall be deposited and credited as determined by subsequent
resolution of the Issuer adopted prior to the series of Bonds for which such subaccount is established.
Investment income earned on the Construction fund shall remain on deposit in the construction Fund
and shall be used solely for the purposes set forth in the Resolution.
MUNICIPAL BOND INSURANCE
Bond Insurance Policy
The following information has been furnished by MBIA for use in this Official
Statement. Reference is made to APPENDIX F - "SPECIMEN COPY OF MUNICIPAL
BOND INSURANCE POLICY AND SURETY BOND" herein for a specimen of MBIA's
Policy.
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MBIA's Policy unconditionally and irrevocably guarantees the full and complete payment
required to be made by or on behalf of the City to the Paying Agent or its successor of an amount
equal to (i) the principal of (either at the stated maturity or by an advancement of maturity pursuant
to a mandatory sinking fund payment) and interest on, the Series 1998 Bonds as such payments shall
become due but shall not be so paid (except that in the event of any acceleration of the due date of
such principal by reason of mandatory or optional redemption or acceleration resulting from default
or otherwise, other than any advancement of maturity pursuant to a mandatory sinking fund payment,
the payments guaranteed by MBI A's Policy shall be made in such amounts and at such times as such
payments of principal would have been due had there not been any such acceleration); and (ii) the
reimbursement of any such payment which is subsequently recovered from any owner of the Series
1998 Bonds pursuant to a final judgment by a court of competent jurisdiction that such payment
constitutes an avoidable preference to such owner within the meaning of any applicable bankruptcy
law (a "Preference").
MBIA's Policy does not insure against loss of any prepayment premium which may at any
time be payable with respect to any Series 1996 Bond. MBIA's Policy does not, under any
circumstance, insure against loss relating to: (i) optional or mandatory redemptions (other than
mandatory sinking fund redemptions); (ii) any payments to be made on an accelerated basis;
(iii) payments of the purchase price of Series 1998 Bonds upon tender by an owner thereof, or
(iv) any Preference relating to (i) through (iii) above. MBIA's Policy also does not insure against
nonpayment of principal of or interest on the Series 1998 Bonds resulting from the insolvency,
negligence or any other act or omission of the Paying Agent or any other paying agent for the Series
1998 Bonds.
Upon receipt of telephonic or telegraphic notice, such notice subsequently confirmed in
writing by registered or certified mail, or upon receipt of written notice by registered or certified
mail, by MBIA from the Paying Agent or any owner of a Series 1998 Bond the payment of an
insured amount for which is then due, that such required payment has not been made, MBIA on the
due date of such payment or within one business day after receipt of notice of such nonpayment,
whichever is later, will make a deposit of funds, in an account with State Street Bank and Trust
Company, N.A., in New York, New York, or its successor, sufficient for the payment of any such
insured amounts which are then due. Upon presentment and surrender of such Series 1998 Bonds
or presentment of such other proof of ownership of the Series 1998 Bonds, together with any
appropriate instruments of assignment to evidence the assignment of the insured amounts due on the
Series 1998 Bonds as are paid by MBIA, and appropriate instruments to effect the appointment of
MBIA as agent for such owners of the Series 1998 Bonds in any legal proceeding related to payment
of insured amounts on the Series 1998 Bonds, such instruments being in a form satisfactory to State
Street Bank and Trust Company, N.A., State Street Bank and Trust Company, N.A. shall disburse
to such owners or the Paying Agent payment of the insured amounts due on such Series 1998 Bonds,
less any amount held by the Paying Agent for the payment of such insured amounts and legally
available therefor.
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MBIA is the principal operating subsidiary of MBIA Inc., a New York Stock Exchange listed
company (the "Company"). MBIA is not obligated to pay the debts of or claims against MBIA.
MBIA is domiciled in the State of New York and licensed to do business in and subject to regulation
under the laws of all 50 states, the District of Columbia, the Commonwealth of Puerto Rico, the
Commonwealth of the Northern Mariana Islands, the Virgin Islands of the United States and the
Territory of Guam. MBIA has two European branches, one in the Republic of France and the other
in the Kingdom of Spain. New York has laws prescribing minimum capital requirements, limiting
classes and concentrations of investments and requiring the approval of policy rates and forms. State
laws also regulate the amount of both the aggregate and individual risks that may be insured, the
payment of dividends by MBIA, changes in control and transactions among affiliates. Additionally,
MBIA is required to maintain contingency reserves on its liabilities in certain amounts and for
certain periods of time.
Effective February 17, 1998, the Company acquired all of the outstanding stock of Capital
Markets Assurance Corporation ("CMAC") through a merger with its parent CapMAC Holdings Inc.
Pursuant to a reinsurance agreement, CMAC has ceded all of its net insured risks (including any
amounts due but unpaid from third parry reinsurers), as well as its unearned premiums and
contingency reserves to MBIA. The Company is not obligated to pay the debts of or claims against
CMAC.
As of December 31, 1997, MBIA had admitted assets of $5.3 billion (audited), total liabilities
of $3.5 billion (audited), and total capital and surplus of $1.8 billion (audited) determined in
accordance with statutory accounting practices prescribed or permitted by insurance regulatory
authorities. As of June 30, 1998, MBIA had admitted assets of $6.0 billion (unaudited), total
liabilities of $4.0 billion (unaudited), and total capital and surplus of $2.0 billion (unaudited)
determined in accordance with statutory accounting practices prescribed or permitted by insurance
regulatory authorities.
Furthermore, copies of MBIA's year end financial statements prepared in accordance with
statutory accounting practices are available from MBIA. A copy of the Annual Report on Form 10-K
of MBIA is available from MBIA or the Securities and Exchange Commission. The address of
MBIA is 113 King Street, Armonk, New York 10504. The telephone number is (914) 273-4545.
Moody's Investors Service, Inc. rates the claims paying ability of the Bond Insurer "Aaa."
Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc. rates
the claims -paying ability of MBIA "AAA."
Fitch IBCA, Inc. (formerly known as Fitch Investors Service, L.P.) rates the claims paying
ability of MBIA "AAA."
Each rating of MBIA should be evaluated independently. The ratings reflect the respective
rating agency's current assessment of the creditworthiness of MBIA and its ability to pay claims on
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its policies of insurance. Any further explanation as to the significance of the above ratings may be
obtained only from the applicable rating agency.
The above ratings are not recommendations to buy, sell or hold the Series 1998 Bonds, and
such ratings may be subject to revision or withdrawal at any time by the rating agencies. Any
downward revision or withdrawal of either or both ratings may have an adverse effect on the market
price of the Series 1998 Bonds. MBIA does not guarantee the market price of the Series 1998 Bonds
nor does it guarantee that the ratings on the Series 1998 Bonds will not be reversed or withdrawn.
The insurance provided by this Policy is not covered by the Florida Insurance Guaranty
Association created under Chapter 631, Florida Statutes.
Debt Service Reserve Surety Bond
Application has been made to the MBIA for a commitment to issue a surety bond (the 'Debt
Service Reserve Fund Surety Bond"). The Debt Service Reserve Fund Surety Bond will provide that
upon notice from the Paying Agent to MBIA to the effect that insufficient amounts are on deposit
in the Debt Service Fund to pay the principal of (at maturity or pursuant to mandatory redemption
requirements) and interest on the Series 1998 Bonds, MBIA will promptly deposit with the Paying
Agent an amount sufficient to pay the principal of and interest on the Series 1998 Bonds or the
available amount of the Debt Service Reserve Fund Surety Bond, whichever is less. Upon the later
of. (i) three (3) days after receipt by MBIA of a Demand for Payment in the form attached to the
Debt Service Reserve Fund Surety Bond, duly executed by the Paying Agent, or (ii) the payment date
of the Seris 1998 Bonds as specified in the Demand for Payment presented by the Paying Agent to
MBIA, MBIA will make a deposit of funds in an account with the State Street Bank and Trust
Company, N.A., in New York, New York, or its successor, sufficient for the payment to the Paying
Agent, of amounts which are then due to the Paying Agent (as specified in the Demand for Payment)
subject to the Surety Bond Coverage.
The available amount of the Debt Service Reserve Fund Surety Bond is the initial face
amount of the Debt Service Reserve Fund Surety Bond less the amount of any previous deposits by
MBIA with the Paying Agent which have not been reimbursed by the City. The City and MBIA have
entered into a Financial Guaranty Agreement dated October , 1998 (the "Agreement"). Pursuant
to the Agreement, the City is required to reimburse MBIA, within one year of any deposit, the
amount of such deposit made by MBIA with the Paying Agent under the Debt Service Reserve Fund
Surety Bond. Such reimbursement shall be made only after all required deposits to the Operation
and Maintenance Fund and the Deb Service Fund have been made.
Under the terms of the Agreement, the Paying Agent is required to reimburse MBIA, with
interest, until the face amount of the Debt Service Reserve Fund Surety Bond is reinstated before any
deposit is made to the General Fund. No optional redemption of the Series 1998 Bonds may be
made until MBIXs Debt Service Reserve Fund Surety Bond is reinstated. The Debt Service Reserve
Fund Surety Bond will be held by the Paying Agent in the Debt Service Reserve Fund and is
14
provided as an alternative to the City depositing a part of the funds equal to the Debt Service
Requirement for outstanding Series 1998 Bonds. The Debt Service Reserve Fund Surety Bond will
be issued in the face amount equal to the Maximum Annual Debt Service for the Series 1998 Bonds
and the premium therefore will be fully paid by the City at the time of delivery of the Series 1998
Bonds.
BOOK -ENTRY ONLY SYSTEM
The Series 1998 Bonds will be issued in registered book -entry form only. Beneficial Owners
of the Series 1998 Bonds will not receive delivery of bond certificates representing their ownership
interests in the Series 1998 Bonds, except in the event that use of the book -entry only system for the
Series 1998 Bonds is discontinued. One fully registered bond certificate will be issued for each
maturity of the Series 1998 Bonds. The Depository Trust Company "DTC"), New York, New York,
will act as securities depository for the Series 1998 Bonds. The Series 1998 Bonds will be issued
as fully registered securities in the name of Cede & Co. (DTC's partnership nominee).
The description which follows of the procedures and recordkeeping with respect to beneficial
ownership interests in the Series 1998 Bonds, payment of interest and principal on the Series 1998
Bonds to DTC Participants (as hereinafter defined) or Beneficial Owners of the Series 1998 Bonds
(as defined herein), confirmation and transfer of beneficial ownership interests in the Series 1998
Bonds, and other related transactions by and between DTC, the DTC Participants and Beneficial
Owners of the Series 1998 Bonds is based solely on information furnished by DTC to the City for
inclusion in this Official Statement. Accordingly, the City neither makes nor can make any
representations concerning these matters.
1. The Depository Trust Comnanv. DTC 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, as amended. DTC holds
securities that its participants (the "Participants") deposit with DTC. DTC also facilitates the
settlement among Participants of securities transactions, such as transfers and pledges, in deposited
securities through electronic book -entry changes in Participants' accounts, thereby eliminating the
need of physical movement of securities certificates. "Direct Participants" include securities brokers
and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is
owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the
American Stock Exchange, Inc., and the National Association of Securities Dealers, Inc. Access to
the DTC system is also available to others such as securities brokers, dealers, banks and trust
companies that clear through or maintain a custodial relationship with a Direct Participant, either
directly or indirectly (the "Indirect Participants"). The rules applicable to DTC and its Participants
are on file with the Securities and Exchange Commission.
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2. Purchase of the Series 1998 Bonds. Purchases of Series 1998 Bonds under the DTC
system must be made by or through Direct Participants, which will receive a credit for such Series
1998 Bonds on DTC's records. The ownership interest of each actual purchaser of each Series 1998
Bond (the "Beneficial Owner") is, in tum, to be recorded on the records of the Direct and Indirect
Participants. Beneficial Owners will not receive written confirmation from DTC of their purchase,
but Beneficial Owners are 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 1998 Bonds will be accomplished by entries on the books of Participants acting on
behalf of the Beneficial Owners. Beneficial Owners will not receive certificates representing their
ownership interests in the Series 1998 Bonds, except in the event that use of the book -entry system
for the Series 1998 Bonds is discontinued.
SO LONG AS CEDE & CO. IS THE REGISTERED OWNER OF THE SERIES 1998
BONDS, AS NOMINEE OF DTC, REFERENCES HEREIN TO THE SERIES 1998
BONDHOLDERS OR REGISTERED OWNERS OF THE SERIES 1998 BONDS SHALL MEAN
CEDE & CO AND NOT THE BENEFICIAL OWNERS OF THE SERIES 1998 BONDS.
3. Subsequent Transfers by Beneficial Owners. To facilitate subsequent transfers, all
Series 1998 Bonds deposited by Participants with DTC are registered in the name of DTC's
partnership nominee, Cede & Co. The deposit of Series 1998 Bonds with DTC and their registration
in the name of Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the
actual Beneficial Owners of the Series 1998 Bonds. DTC's records reflect only the identity of the
Direct Participants to whose accounts such Series 1998 Bonds are credited, which may or may not
be the Beneficial Owners. The Participants will remain responsible for keeping account of their
holdings on behalf of their customers.
4. Notices. Consents. Conveyance of notices and other communications by DTC to
Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and
Indirect Participant 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. Redemption notice
shall be sent to Cede & Co. if less than all of the Series 1998 Bonds are being redeemed. DTC's
practice is to determine by lot the amount of the interest of each Direct Participant in such issue to
be redeemed. Neither DTC nor Cede & Co. will consent or vote with respect to the Series 1998
Bonds. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible
after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those
Direct Participants to whose accounts the Series 1998 Bonds are credited on the record date
(identified in a listing attached to the Omnibus Proxy).
5. Payment of the Series 1998 Bonds. Principal and interest payments on the Series
1998 Bonds will be made to DTC. DTC's practice is to credit the accounts of the Direct Participants
on the payable date in accordance with their respective holdings shown on the records of DTC unless
DTC has reason to believe that it will not receive payment on the payable date. Payments by the
16
Participants to Beneficial Owners will be governed by standing instructions and customary practices,
as is the case with securities held for the accounts of customers in bearer form or with securities held
for the accounts of customers in bearer form or registered in "street name," and will be the
responsibility of such Participant and not of DTC, the Paying Agent or the City, subject to any
statutory and regulatory requirements as may be in effect from time to time. Payment of principal
and interest to DTC is the responsibility of the City and SunTrust Bank, Central Florida, National
Association, the Paying Agent for the Series 1998 Bonds. Disbursement of such payments to Direct
Participants is the responsibility of DTC, and disbursement of such payments to the Beneficial
Owners is the responsibility of the Direct and Indirect Participants.
6. Discontinuance of Book -Entry System. DTC may discontinue providing its services
as securities depository with respect to the Series 1998 Bonds at any time by giving reasonable notice
to the City or the Paying Agent. Under such circumstances, in the event that a successor securities
depository is not obtained, bond certificates for the Series 1998 Bonds are required to be printed and
delivered. The City may decide to discontinue use of the system of book -entry transfers through
DTC (or a successor securities depository). In that event, bond certificates for the Series 1998 Bonds
will be printed and delivered.
THE REFUNDING PROGRAM
Certain ofthe proceeds ofthe Series 1998 Bonds and other legally available funds of the City
shall be deposited irrevocably with SunTrust Bank, Central Florida, National Association, Orlando,
Florida, or any successor (the 'Escrow Agent") in trust in the escrow account under the terms and
provisions of the Escrow Deposit Agreement (the 'Escrow Deposit Agreement'), by and between
the City and the Escrow Holder. Under the Escrow Deposit Agreement, the Escrow Agent will invest
such proceeds in bonds or other obligations which as to principal and interest constitute direct
obligations of, or are unconditionally guaranteed by, the United States of America ("Federal
Securities"), none of which permit redemption at the option of the United States of America prior
to the dates on which such Federal Securities shall be applied pursuant to the Escrow Deposit
Agreement in the manner set forth in the Escrow Deposit Agreement, which investments shall
mature at such times and in such amounts as shall be sufficient to pay the principal of and interest
on the Refunded Bonds, as the same shall become due and payable. Bond Counsel will opine at the
time of the delivery of the Series 1998 Bonds upon reliance on a verification report that the lien on
the Pledged Revenues of that portion of the Series 1990 Bonds refunded is no longer in effect.
Following the delivery of the Series 1998 Bonds, the Series 1990 Bonds shall be outstanding in the
aggregate principal amount of $1,540,000.
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THE SERIES 1998 BONDS
General
The Series 1998 Bonds shall be issued in fully registered form, without coupons, in the
denomination of $5,000 each, or integral multiples thereof, shall be dated, shall bear interest
computed on the basis of a 360 -day year of twelve 30 -day months at the rates and shall mature on
the dates and in the amounts shown on the cover page hereof.
The Series 1998 Bonds shall bear interest from the interest payment date next preceding the
date on which it is authenticated, unless authenticated on an interest payment date, in which case it
shall bear interest from such interest payment date, or unless authenticated prior to the first interest
payment date, in which case it shall bear interest from its date. However, if at the time of
authentication payment of any interest which is due and payable has not been made, such Series 1998
Bond shall bear interest from the date to which interest shall have been paid.
The interest on the Series 1998 Bonds shall be payable by the Paying Agent, by check or draft
on each interest payment date, to the registered owner thereof at the address as shown on the
registration books kept by the Registrar at the close of business on the fifteenth day of the calendar
month immediately preceding such interest payment date (the 'Record Date"). At the written request
and expense of a registered owner of $1,000,000 or more of Series 1998 Bonds, interest may be paid
to such registered owner by wire transfer or other medium acceptable to the City and the Paying
Agent. Payment of the principal of all Series 1998 Bonds shall be made, when due, upon the
presentation and surrender of such Series 1998 Bonds at the office of the Paying Agent as the same
shall become due and payable.
Only Series 1998 Bonds which have endorsed thereon a certificate of authentication duly
executed by the Registrar, as authenticating agent, shall be entitled to any benefit or security under
the Resolution. No Series 1998 Bond shall be valid or obligatory for any purpose unless such
certificate of authentication shall have been duly executed by the Registrar. The Registrar shall keep
books for the registration of and for the registration of transfers of Series 1998 Bonds as provided
in this Resolution.
In case any Series 1998 Bond shall become mutilated, or be destroyed, stolen or lost, the City
may in its discretion cause to be executed, and the Registrar shall authenticate and deliver, a new
Series 1998 Bond of like maturity, date and tenor as the Bond so mutilated, destroyed, stolen or lost
in exchange and substitution for such mutilated Series 1998 Bond upon surrender and cancellation
of such mutilated Series 1998 Bond or in lieu of and substitution for the Bond destroyed, stolen or
lost, and upon the Holder famishing the City and the Registrar proof of his ownership thereof and
satisfactory indemnity and complying with such other reasonable regulations and conditions as the
City and the Registrar may prescribe and paying such expenses as the City and the Registrar may
incur. All Series 1998 Bonds so surrendered shall be cancelled by the Registrar. If any of the Series
1998 Bonds shall have matured or be about to mature, instead of issuing a substitute Series 1998
18
Bond, the Paying Agent may pay the same, upon the City and Registrar being indemnified as
aforesaid, and if such Series 1998 Bond be lost, stolen or destroyed, without surrender thereof.
Any such duplicate Series 1998 Bonds issued pursuant to this Section shall constitute
original, additional contractual obligations on the part of the City whether or not the lost, stolen or
destroyed Series 1998 Bonds be at any time found by anyone, and such duplicate Series 1998 Bonds
shall be entitled to equal and proportionate benefits and rights as to lien on and source and security
for payment from the Pledged Revenues, to the same extent as all other Series 1998 Bonds issued
hereunder.
Optional Redemption
The Series 1998 Bonds maturing on or prior to October 1, 20_ are not subject to redemption
prior to their respective maturities. The Series 1998 Bonds maturing on or after October 1, 20 are
subject to redemption prior to maturity on or after October 1, 20. at the option of the City, in
whole at any time or in part on any interest payment date in such manner as shall be determined by
the City and by lot within a maturity if less than a full maturity from any legally available moneys
at a redemption price (expressed as a percentage of the principal amount) as set forth in the following
table, plus accrued interest to the redemption date.
Period During Which Redeemed Redemption
(Both dates inclusive)_ Price
October 1, through September 30,
October 1, through September 30,
October 1, and thereafter
Mandatory Redemption
The Series 1998 Bonds which mature on October 1, _ are subject to mandatory
redemption in part prior to maturity by lot, at redemption prices equal to 100% of the principal
amount thereof plus interest accrued to the redemption date, beginning on October 1, _, and on
each October 1 thereafter, in the following principal amounts in the years specified:
*Maturity
Principal
Year Amount
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The Series 1998 Bonds which mature on October 1, _ are subject to mandatory
redemption in part prior to maturity by lot, at redemption prices equal to 100% of the principal
amount thereof plus interest accrued to the redemption date, beginning on October 1, _ , and on
each October 1 thereafter, in the following principal amounts in the years specified:
Principal
Year Amount
*Maturity
The Series 1998 Bonds which mature on October 1, _ are subject to mandatory
redemption in part prior to maturity by lot, at redemption prices equal to 100% of the principal
amount thereof plus interest accrued to the redemption date, beginning on October 1, _ , and on
each October 1 thereafter, in the following principal amounts in the years specified:
Principal
Year Amount
*Maturity
Notice of Redemption
The Series 1998 Bonds are subject to redemption prior to maturity as herein above provided.
As long as a book -entry only system with DTC is used for determining beneficial ownership of the
Series 1998 Bonds, notice of redemption will only be sent to Cede & Co. Cede & Co. will be
responsible for notifying the DTC Participants who will in tum be responsible for notifying the
Beneficial Owners. Any failure of DTC to mail such notice to any DTC Participant or of any DTC
Participant to notify the Beneficial Owner will not affect the validity of the redemption of the Series
1998 Bonds. If less than all of the Series 1998 Bonds are called for redemption, DTC will determine
which DTC Participant's interest in the Series 1998 Bonds will be called for redemption by lot
pursuant to DTC's standard practices. Each DTC Participant will determine which Beneficial
KE
Owners' interest in the Series 1998 Bonds will be called for redemption by lot pursuant to such DTC
Participant's standard practices.
In the event that the use of a book -entry system with respect to the Series 1998 Bonds is
discontinued, notice of redemption shall, at least thirty (30) days prior to the redemption date, be
filed with the Registrar, and mailed, first class mail, postage prepaid, to all Holders of Bonds to be
redeemed at their addresses as they appear on the registration books hereinbefore provided for, but
failure to mail such notice to one or more Holders of Bonds shall not affect the validity of the
proceedings for such redemption with respect to Holders of Bonds to which notice was duly mailed
hereunder. Each such notice shall set forth the date fixed for redemption, the redemption price to be
paid and, if less than all of the Series 1998 Bonds of one maturity are to be called, the distinctive
numbers of such Series 1998 Bonds to be redeemed and in the case of Series 1998 Bonds to be
redeemed in part only, the portion of the principal amount thereof to be redeemed.
In addition to the mailing of the notice described in the immediately preceding paragraph,
each notice of redemption shall (i) be sent at least 35 days before the redemption date and to the
extent possible, at least two days prior to the general date of mailing by registered or certified mail
or overnight delivery service or telecopy to all registered securities depositories then in the business
of holding substantial amounts of obligations of types comprising the Series 1998 Bonds (such
depositories now being The Depository Trust Company, New York, New York, and Midwest
Securities Trust Company, Chicago, Illinois), and to two or more national information services that
disseminate notices of redemption of obligations such as the Series 1998 Bonds, and (ii) be
published one time in The Bond Buyer, New York, New York or, if such publication is impractical
or unlikely to reach a substantial number of the holders of the Series 1998 Bonds to be redeemed,
in some other financial newspaper or journal which regularly carries notices of redemption of other
obligations similar to the Series 1998 Bonds, such publication to be made at least 30 days prior to
the date fixed for redemption; provided, however, that failure of such notice or payment to comply
with the terms of this paragraph shall not in any manner defeat the effectiveness of a call for
redemption if notice thereof is given as otherwise prescribed above in this section. Upon the payment
of the redemption price of Series 1998 Bonds being redeemed, each check or other transfer of funds
issued for such purpose shall bear the CUSIP number identifying, by issue and maturity, the Series
1998 Bonds being redeemed with the proceeds of such check or other transfer. A second notice of
redemption shall be mailed in the manner provided above to any Bondholder who has not tendered
Series 1998 Bonds that have been called for redemption within sixty (60) days after the applicable
redemption date.
Upon surrender of any Series 1998 Bond for redemption in part only, the Registrar shall
authenticate and deliver to the Bondholder thereof, the cost of which shall be paid by the City, a new
Series 1998 Bond of the same maturity and type and of an authorized denomination equal to the
unredeemed portion of the Series 1998 Bond surrendered.
21
Transfer and Exchange
In the event the book -entry only system for the Series 1998 Bonds is discontinued for any
reason, the transfer of any Series 1998 Bonds may be registered only upon such books and only upon
surrender thereof to the Registrar together with an assignment duly executed by the Bondholder or
his attorney or legal representative in such form as shall be satisfactory to the Registrar. Upon any
such registration or transfer the City shall execute and the Registrar shall authenticate and deliver
in exchange for such Series 1998 Bond, a new Series 1998 Bond or Series 1998 Bonds registered
in the name of the transferee, of the same maturity and type and in an aggregate principal amount
equal to the principal amount of such Series 1998 Bond or Series 1998 Bonds so surrendered.
Any Series 1998 Bond, upon surrender thereof at the principal corporate trust office of the
Registrar (or if the Clerk is the Registrar, at the office of the Clerk), together with an assignment duly
executed by the Bondholder or his attorney or legal representative in such form as shall be
satisfactory to the Registrar, may, at the option of the Bondholder, be exchanged for an aggregate
principal amount of Series 1998 Bonds equal to the principal amount and of the same type of the
Series 1998 Bond or Series 1998 Bonds so surrendered. The Registrar shall make provision for the
exchange of Bonds at the principal corporate trust office of the Registrar (or if the Clerk is the
Registrar, at the office of the Clerk).
In all cases in which Series 1998 Bonds shall be exchanged, the City shall execute and the
Registrar shall authenticate and deliver, at the earliest practicable time, a new Series 1998 Bond or
Series 1998 Bonds of the same maturity and of the same type in accordance with the provisions of
the Resolution. All Bonds surrendered in any such exchange shall forthwith be canceled by the
Registrar. The City or the Registrar may make a charge for every such exchange of Series 1998
Bonds sufficient to reimburse it for any tax or other governmental charge required to be paid with
respect to such exchange, but no other charge shall be made to any Bondholder for the privilege of
exchanging Series 1998 Bonds under the provisions of the Resolution. Neither the City nor the
Registrar shall be required to make any such exchange of Series 1998 Bonds after the Record Date.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
22
ESTIMATED SOURCES AND USES OF FUNDS
The proceeds to be received from the sale of the Series 1998 Bonds, including accrued
interest on the Series 1998 Bonds to the date of delivery, are expected to be applied as follows:
Sources of Funds
Principal Amount of Series 1998 Bonds ..................... $
Less: Original Issue Discount .............................
Plus: Accrued Interest ...................................
Total Sources ....................................
Uses of Funds
Deposit to Construction Fund i') ........................... $
Deposit to Escrow Account under the Escrow
Deposit Agreement ....................................
Deposit of Accrued Interest to Interest Account ...............
Costs of Issuance (2) ..................................... .
Total Uses ...................................... $
"' Moneys used to fund a portion of the Project.
(Z) Includes underwriter's discount, costs of issuance and bond insurance and surety bond premiums.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
23
IM
SCHEDULED DEBT SERVICE FOR THE SERIES 1998 BONDS AND PARITY BONDS
Series 1998 Bonds
Fiscal Year Series 1990 Total
Ending Aggregate Bonds Debt
October 1 Principal") Interest Debt Service Debt Servid') Service
1998
1999
$164,042.50
2000
160,592.50
2001
162,092.50
2002
163,215.00
2003
163,835.00
2004
164,090.00
2005
163,980.00
2006
163,505.00
2007
162,625.00
2008
161,250.00
2009
164,500.00
2010
162,000.00
2011
164,125.00
2012
160,500.00
2013
161,500.00
2014
161,750.00
2015
161,250.00
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
TOTAL
$2,764,852.50
Includes Amortization Installments for Term Bonds.
Debt service on the Series 1990 Bonds that will remain outstanding following the issuance of the
Series 1998 Bonds.
24
THE CITY
The City of Ocoee, Florida was incorporated in 1925. It is bounded on the west by Winter
Garden, Florida, and on the south by Windermere, Florida, and has a land area of approximately 20.5
square miles, making it the second largest city in land area of the thirteen cities in Orange County.
As of April 1998, the population of the City was estimated at 21,007, which ranks the City third in
population of the cities in Orange County.
The City is governed by a Commission -Manager form of government. The four City
Commissioners and the Mayor are elected on staggered two-year terms of office, who in turn appoint
the City Manager.
History and Organization
The City of Ocoee, Florida, is a municipal corporation created under the laws of the State of
Florida. The current Mayor and commissioners, the years in which their terms expire, and their
principal occupations are as follows:
Commissioner
S. Scott Vandergrift, Mayor
Danny Howell
Nancy J. Parker
Scott A. Glass
Scott Anderson
Expiration of Term Occupation
March, 1999
Real Estate
March, 1999
Construction
March, 2000
Secretary
March, 1999
Attorney
March, 2000
Pilot
For additional information concerning the City, see "APPENDIX A - GENERAL
INFORMATION CONCERNING THE CITY OF OCOEE AND ORANGE COUNTY" attached
hereto.
THE PROJECT
A portion of the proceeds of the Series 1998 Bonds shall be used to fund certain proposed
roadway projects for the City, including but not limited to Maguire Road, Professional Parkway and
Main Street (collectively, the 'Project"), each of which is described below.
Maguire Road Project
The City is undertaking the improvement of a 1.5 mile segment of Maguire Road that extends
from 1200 feet south of the intersection of Roberson and Moore Roads in a south -north direction to
State Road 50 ("SR 50") due to the increase in projected traffic volumes. Maguire Road is
functionally classified as a collector road. The existing road is a two lane rural section (open
drainage) that overpasses the Florida Turnpike within these limits. The proposed roadway
25
improvement project has been divided into three phases and the total construction cost for this
roadway project is estimated at $8,300,000.
Professional Parkway Project
The City proposes to improve the segment of Professional Parkway that extends from
Maguire Road east to Old Winter Garden Road. The existing road is a two lane rural typical section
with 12 foot lanes, an open drainage system and an existing right-of-way width of 60 feet. The total
length of this roadway project is 0.50 miles and the estimated construction cost excluding
right-of-way costs is $2,400,000.
Main Street Project
Main Street is presently a historical two lane brick road. In order to maintain this road as a
historical preservation site, the City has proposed to realign 0.52 miles of the road from Chicago
Avenue to Maguire Road and to pave 0.28 miles of existing dirt road from Chicago Avenue to
Blackwood Avenue for a total roadway improvement length of 0.80 miles. The construction cost
for this roadway project, excluding right-of-way costs, is estimated to be $2,100,000.
Additional Projects
To the extent available, the proceeds of the Series 1998 Bonds may also be expended on
certain additional roadway projects of the City, as may be approved by the Commission.
LITIGATION
There is not now pending any litigation restraining or enjoining the issuance or delivery of
the Series 1998 Bonds or the pledge of the Pledged Revenues or questioning or affecting the validity
of the Series 1998 Bonds or the pledge of the Pledged Revenues or the proceedings and authority
under which they are to be issued and the Pledged Revenues are pledged.
While no litigation is currently pending, the right of Commissioner Danny Howell to hold
his office has been questioned in that he is allegedly a convicted felon whose civil rights were not
restored at the time of this election to office. The City Commission has scheduled a public hearing
on this matter for October 1, 1998. The outcome of such hearing will not effect the validity of
Resolution No. 98-13 with respect to the Series 1998 Bonds which was adopted on September 15,
1998 because the Commission voted unanimously in favor of such Resolution. Neither the creation,
organization or existence of the City, nor the title of the present Mayor, or the other commissioners
or officials of the City to their respective offices is being contested.
26
The City experiences routine litigation and claims incidental to the conduct of its affairs and
the operating of the System. The City carries substantial insurance for these exposures, and pending
claims are defended by and, if necessary, are anticipated to be paid by the insurance carriers. There
is no cause either pending or, to the best knowledge of the City, threatened against the City which
may materially adversely affect the ability of the City to pay the Series 1998 Bonds or adversely
affect the general financial condition of the City.
LEGAL MATTERS
Certain legal matters incident to the validity of the Series 1998 Bonds and the issuance
thereof by the City are subject to the approval of Bryant, Miller and Olive, P.A., Tampa, Florida,
Bond Counsel, whose approving opinion will be printed on the Series 1998 Bonds. Certain legal
matters will be passed upon for the City by Foley & Lardner, Orlando, Florida, City Attorney.
Certain legal matters will be passed upon for the Underwriters by their counsel, Nabors, Giblin &
Nickerson, P.A., Orlando, Florida.
TAX EXEMPTION
General
The Internal Revenue Code of 1986, as amended, establishes certain requirements which
must be met subsequent to the issuance and delivery of the Series 1998 Bonds in order that interest
on the Series 1998 Bonds be and remain excluded from gross income for purposes of Federal income
taxation. Non-compliance may cause interest on the Series 1998 Bonds to be included in Federal
gross income retroactive to the date of issuance of the Series 1998 Bonds, regardless of the date on
which such non-compliance occurs or is ascertained. These requirements include, but are not limited
to, provisions which prescribe yield and other limits within which the proceeds of the Series 1998
Bonds and the other amounts are to be invested and require that certain investment earnings on the
foregoing must be rebated on a periodic basis to the Treasury Department of the United States. The
City has covenanted in the Resolution to comply with such requirements in order to maintain the
exclusion from Federal gross income of the interest on the Series 1998 Bonds.
In the opinion of Bond Counsel, assuming compliance with the aforementioned covenants,
under existing laws, regulations, judicial decisions and rulings, interest on the Series 1998 Bonds
is excluded from gross income for purposes of Federal income taxation. Interest on the Series 1998
Bonds is not an item of tax preference for purposes of the Federal alternative minimum tax imposed
on individuals or corporations; however, interest on the Series 1998 Bonds may be subject to the
alternative minimum tax when any Series 1998 Bond is held by a corporation. The alternative
minimum taxable income of a corporation must be increased by 75% of the excess of such
corporation's adjusted current earnings over its alternative minimum taxable income (before this
adjustment and the alternative tax net operating loss deduction). "Adjusted current earnings" will
27
include interest on the Series 1998 Bonds. The Series 1998 Bonds are exempt from all present
intangible personal property taxes imposed pursuant to Chapter 199, Florida Statutes.
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 Series 1998 Bonds. Prospective purchasers of Series 1998 Bonds should be aware that
the ownership of Series 1998 Bonds may result in collateral Federal income tax consequences,
including (1) the denial of a deduction for interest on indebtedness incurred or continued to purchase
or carry Series 1998 Bonds, (2) the reduction of the loss reserve deduction for property and casualty
insurance companies by 15% of certain items, including interest on the Series 1998 Bonds, (3) for
taxable years beginning before January 1, 1996, the inclusion of interest on Series 1998 Bonds in
"modified alternative minimum taxable income" for purposes of the environmental tax imposed on
corporations, (4) the inclusion of interest on the Series 1998 Bonds in earnings of certain foreign
corporations doing business in the United States for purposes of a branch profits tax, (5) the
inclusion of interest on Series 1998 Bonds in passive income subject to Federal income taxation of
certain Subchapter S corporations with Subchapter C earnings and profits at the close of the taxable
year, and (6) the inclusion of interest on the Series 1998 Bonds in "modified adjusted gross income"
by recipients of certain Social Security and Railroad Retirement benefits for purposes of determining
whether such benefits are included in gross income for Federal income tax purposes.
PURCHASE, OWNERSHIP, SALE OR DISPOSITION OF THE SERIES 1998 BONDS
AND THE RECEIPT OR ACCRUAL OF THE INTEREST THEREON MAY HAVE ADVERSE
FEDERAL TAX CONSEQUENCES FOR CERTAIN INDIVIDUAL AND CORPORATE
BONDHOLDERS. PROSPECTIVE BONDHOLDERS SHOULD CONSULT WITH THEIR TAX
SPECIALISTS FOR INFORMATION IN THAT REGARD.
During recent years legislative proposals have been introduced in Congress, and in some
cases enacted, that altered certain Federal tax consequences resulting from the ownership of
obligations that are similar to the Series 1998 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 1998 Bonds.
From time to time, legislative proposals are pending which could have an effect on both the Federal
tax consequences resulting from ownership of Series 1998 Bonds and their market value. No
assurance can be given that legislative proposals will not be introduced or enacted that would or
might apply to, or have an adverse effect upon, the Series 1998 Bonds.
Tax Treatment of Original Issue Discount
Under the Code, the difference between the maturity amounts of the Series 1998 Bonds
maturing in the years through , inclusive, and in the years _ and _ and the initial
offering price to the public, excluding bond houses, brokers or similar persons or organizations
acting in the capacity of underwriters or wholesalers, at which price a substantial amount of Series
1998 Bonds of the same maturity was sold is 'original issue discount." Original issue discount will
accrue over the term of such Series 1998 Bonds at a constant interest rate compounded periodically.
IN
A purchaser who acquires such Series 1998 Bonds in the initial offering at a price equal to the initial
offering price thereof to the public will be treated as receiving an amount of interest excludable from
gross income for federal income tax purposes equal to the original issue discount accruing during
the period he holds such Series 1998 Bonds, and will increase his adjusted basis in such Series 1998
Bonds by the amount of such accruing discount for purposes of determining taxable gain or loss on
the sale or other disposition of such Series 1998 Bonds. The Federal income tax consequences of
the purchase, ownership and sale or other disposition of Series 1998 Bonds which are not purchased
in the initial offering at the initial offering price may be determined according to rules which differ
from those above. Owners of such Series 1998 Bonds should consult their own tax advisors with
respect to the precise determination for Federal income tax purposes of interest accrued upon sale
or other disposition of Series 1998 Bonds and with respect to the state and local tax consequences
of owning and disposing of Series 1998 Bonds.
VERIFICATION
The accuracy of the mathematical computations of the adequacy of the maturing principal
amounts and interest on escrow securities and initial cash balances to pay all principal of, interest
on, and redemption premium and accrued interest on the Refunded Bonds through their redemption
dates will be verified by McGladrey & Pullen, LLP, Minneapolis, Minnesota. Such verification will
be based upon information provided by the Underwriter and the Financial Advisor.
UNDERWRITING
The Underwriters have agreed, subject to certain conditions, to purchase the Series 1998
Bonds from the City at a price $ , (which represents the $ principal amount of the
Bonds less an original issue discount of $ and less an Underwriters' discount of $ )
plus accrued interest. The initial public offering prices set forth on the cover page of this Official
Statement include aggregate original issue discount of $ . The Underwriters' obligation is
subject to certain conditions precedent, and they will be obligated to purchase all of the Series 1998
Bonds if any Series 1998 Bonds are purchased. The Series 1998 Bonds may be offered and sold to
certain dealers (including dealers depositing such Series 1998 Bonds into investment trusts) at prices
lower than the public offering prices stated on the cover page hereof, and such public offering prices
may be changed from time to time by the Underwriter.
CONTINUING DISCLOSURE
The City has covenanted for the benefit of Series 1998 Bondholders to provide certain
financial information and operating data relating to the City and the Series 1998 Bonds in each year
(the "Annual Report"), and to provide notices of the occurrence of certain enumerated material
events. Such covenant shall only apply so long as the Series 1998 Bonds remain outstanding under
the Resolution. The covenant shall also cease upon the termination of the continuing disclosure
29
requirements of SEC Rule 15c2 -12(b)(5) (the "Rule") by legislative, judicial or administration
action. The Annual Report will be filed by the City with each Nationally Recognized Municipal
Securities Information Repository (the "NRMSIRs") described in APPENDIX E - "FORM OF
CONTINUING DISCLOSURE CERTIFICATE" attached hereto, as well as any state information
depository that is subsequently established in the State of Florida (the "SID"). The notices of
material events will be filed by the City with the NRMSIRs or the Municipal Securities Rulemaking
Board, and with the SID. The specific nature of the information to be contained in the Annual
Report and the notices of material events are described in "APPENDIX E - FORM OF
CONTINUING DISCLOSURE CERTIFICATE," which shall be executed by the City at the time
of issuance of the Series 1998 Bonds. These covenants have been made in order to assist the
Underwriter in complying with the Rule.
With respect to the Series 1998 Bonds, no parry other than the City is obligated to provide,
nor is expected to provide, any continuing disclosure information with respect to the aforementioned
Rule. It is the intent of the City that specific performance be the sole remedy for an event of default
under the Continuing Disclosure Certificate.
YEAR 2000 COMPUTER REMEDIATION
As the year 2000 approaches, computer systems worldwide will undergo a date transition that
may cause major problems and errors if corrective measures are not taken. The problem arises in
systems with software programs which use 2 -digit date codes. These codes will recognize the year
2000 as the year 1900, causing many of the systems to malfunction or fail. The City is currently in
the process of evaluating its computer and information systems and programs (non-financial
application ) and will take the necessary steps to modify and test those systems and programs to
insure that they are year 2000 compliant prior to January 1, 2000. The City cannot, and does not,
provide any assurance that vendors, paying agents and other third parties providing services to the
City have or are effectively dealing with year 2000 issues as the year 2000 approaches.
i7:WIRW
It is anticipated that Standard & Poor's Ratings Group, a division of the McGraw Hill
Companies Inc. ("S&P") and Fitch IBCA, Inc. ("Fitch") shall assign municipal bond ratings of "_"
and " " respectively, to this issue of Series 1998 Bonds with the understanding that upon delivery
of the Series 1998 Bonds, a policy insuring the timely payment of the principal of and interest on the
Series 1998 Bonds will be issued by MBIA. In addition, Fitch is expected to assign an underlying
rating of "_" to the Series 1998 Bonds. Such ratings reflect only the views of the rating agencies,
and an explanation of the significance of such ratings may be obtained from the applicable rating
agency. There is no assurance that such ratings will continue for any given period of time or that
they will not be revised or withdrawn entirely by such rating agencies, if in their judgment,
circumstances so warrant. Any downward revision or withdrawal of such ratings may have an
adverse effect upon the market price of the Series 1998 Bonds.
30
FINANCIAL STATEMENTS
The audited financial statements of the City for the Fiscal Years ended September 30, 1997
and September 30, 1996, including the audit report, dated December 5, 1997, of McDirmit, Davis,
Lauteria, Puckett, Vogel & Company, P.A., independent accountants, are set forth in
APPENDIX B - "GENERAL INFORMATION CONCERNING THE CITY OF OCOEE AND
ORANGE COUNTY" hereto.
FINANCIAL ADVISOR
The City has retained First Union Capital Markets, a Division of Wheat First Securities, hie..
("First Union"), Orlando, Florida, as financial advisor with respect to the issuance of the Series 1998
Bonds. First Union is not obligated to undertake and has not undertaken to make an independent
verification or to assume responsibility for the accuracy, completeness, or fairness of the information
contained in the Official Statement.
DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS
Florida law requires the City to make a full and fair disclosure of any bonds or other
obligations which it has issued or guaranteed and which are or have been in default as to principal
or interest at any time after December 31, 1975 (including bonds or other debt obligations for which
it has served as a conduit issuer). The City is not and has not been in default as to principal and
interest on non -conduit bonds or other debt obligations which it has issued or guaranteed. The City
has not served as a conduit issuer for bonds or other debt obligations.
ENFORCEABILITY OF REMEDIES
The remedies available to the owners of the Series 1998 Bonds upon an event of default
under the Resolution and any policy of insurance referred to herein 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, the Series 1998 Bonds and any policy of insurance referred
to herein may not be readily available or may be limited. The various legal opinions to be delivered
concurrently with the delivery of the Series 1998 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.
911
MISCELLANEOUS
Any statements made in this Official Statement involving matters of opinion or of estimates,
whether or not so expressly stated, are set forth as such and not as representations of fact, and no
representation is made that any of the estimates will be realized. Neither this Official Statement nor
any statement that may have been made verbally or in writing is to be construed as a contract with
the owners of the Series 1998 Bonds.
The information contained above is neither guaranteed as to accuracy or completeness nor
to be construed as a representation by the City or the Underwriter. The information and expressions
of opinion herein are subject to change without notice and neither the delivery of this Official
Statement nor any sale made hereunder is to create, under any circumstances, any implication that
there has been no change in the affairs of the City from the date hereof.
This Official Statement is submitted in connection with the sale of the securities referred to
herein and may not be reproduced or used, as a whole or in part, for any other purpose. Any
statements in this Official Statement involving matters of opinion, whether or not expressly so stated
are intended as such and not as representations of fact. This Official Statement is not to be construed
as a contract or agreement between the City and the purchasers or the Holders of any of the Series
1998 Bonds.
CERTIFICATE AS TO OFFICIAL STATEMENT
The execution and delivery of this Official Statement has been duly authorized by the City
Commission of the City. At the time of delivery of the Series 1998 Bonds to the Underwriter, the
City will provide to the Underwriter a certificate (which may be included in a consolidated closing
certificate of the City), signed by the City official who signed this Official Statement, relating to the
accuracy and completeness of certain materials in this Official Statement and to its being a "final
official statement" in the judgment of the City Commission for the purpose of SEC
Rule 15c2 -12(b)(3) or which is necessary in order to make the statements contained herein, in light
of the circumstances under which they were made, not misleading; provided, however, no
representation is made relating to DTC, the book -entry system, MBIA or the Policy.
CITY OF OCOEE, FLORIDA
By:
Mayor
APPENDIX A
GENERAL INFORMATION CONCERNING THE CITY OF OCOEE
AND ORANGE COUNTY, FLORIDA
[This page intentionally left blank]
APPENDIX A
GENERAL INFORMATION CONCERNING THE
CITY OF OCOEE AND ORANGE COUNTY, FLORIDA
THE FOLLOWING INFORMATION CONCERNING THE CITY OF
OCOEE, FLORIDA, ORANGE COUNTY, FLORIDA AND THE ORLANDO
METROPOLITAN STATISTICAL AREA IS INCLUDED ONLY FOR THE
PURPOSE OF PROVIDING GENERAL BACKGROUND INFORMATION. THE
INFORMATION HAS BEEN COMPILED ON BEHALF OF THE CITY AND
SUCH COMPILATION INVOLVED ORAL AND WRITTEN COMMUNICATION
WITH THE VARIOUS SOURCES INDICATED. THE INFORMATION IS
SUBJECT TO CHANGE, ALTHOUGH EFFORTS HAVE BEEN MADE TO
UPDATE THE INFORMATION WHERE PRACTICABLE.
THE SERIES 1998 BONDS ARE NOT GENERAL OBLIGATIONS OF THE
STATE OF FLORIDA OR ANY POLITICAL SUBDIVISION THEREOF,
INCLUDING THE CITY OF OCOEE.
General Description and Location
The City of Ocoee, Florida (the "City") is a residential community in the western part of
Orange County, Florida (the "County") and was incorporated in 1925. It is bounded on the west
by Winter Garden, and on the south by Windermere, and has a land area of approximately 20
square miles, thus making it the second largest city in land area of the thirteen cities in Orange
County. State Roads 50,437 and 438 are major roads providing easy access to City residents. The
Florida Turnpike, the East-West Expressway and State Road 50 all pass through the City limits.
The Western Beltway will also be accessible within the City limits. As of April, 1998, the
population of the City was estimated at 21,007. The City ranks third in population of the cities
in Orange County. The average household income, as estimated by the West Orange Chamber
of Commerce for West Orange County, is $47,900 and the median age of an Orange County
resident is 32.5 years of age.
A-1
Population
The following table sets forth historical and projected population trends in the City of
Ocoee, Orange County, and the State of Florida for various years from 1960 through 2010:
Source: U.S. Census Bureau; Population Studies Population Program, Bureau of Economic
and Business Research, University of Florida; City of Ocoee.
Government
The City is governed by a Commission -Manager form of government. The four City
Commissioners and the Mayor are elected on staggered two-year terms of office, who in turn
appoint the City Manager. Listed below are the current Mayor and City Commissioners and
their respective term expiration dates:
Members
City of Ocoee
S. Scott Vandergrift, Mayor
Orange County
Danny Howell, Commissioner
State of Florida
Nancy J. Parker, Commissioner
Year
Population
Chanee
Population
Chan"
Population
Change
1998
21,653
5.3%
824,095
2.5%
14,999,105
2.0%
1997
20,560
6.7
803,614
3.4
14,712,922
2.1
1996
19,261
3.7
777,556
2.4
14,411,563
1.9
1995
18,578
45.4
758,962
12.0
14,149,317
9.4
1990
12,778
63.8
677,491
43.9
12,938,071
32.7
1980
7,803
98.2
470,865
36.8
9,746,424
43.5
1970
3,937
57.5
344,311
30.6
6,791,418
37.2
1960
2,500
—
263,540
—
4,951,560
–
Proiecte
2000
34,835
70.2
928,562
19.9
16,761,774
15.3
2010
22,357
63.2
842,660
29.1
15,527,384
20.5
Source: U.S. Census Bureau; Population Studies Population Program, Bureau of Economic
and Business Research, University of Florida; City of Ocoee.
Government
The City is governed by a Commission -Manager form of government. The four City
Commissioners and the Mayor are elected on staggered two-year terms of office, who in turn
appoint the City Manager. Listed below are the current Mayor and City Commissioners and
their respective term expiration dates:
Members
Term Expires
S. Scott Vandergrift, Mayor
March 1999
Danny Howell, Commissioner
March 1999
Nancy J. Parker, Commissioner
March 2000
Scott A. Glass, Commissioner
March 1999
Scott Anderson, Commissioner
March 2000
A-2
a `o d PRELIMINARY OFFICIAL STATEMENT DATED AS OF SEPTEMBER 24, 1998
oo c NEW ISSUE -BOOK -ENTRY ONLY RATINGS: S&P: "_"
c « Fitch: "
m � o (hIRIA Insured)
E 0 m (See "Ratings" herein)
q c In the opinion of Bond Counsel, assuming compliance by the City with certain covenants in the herein described Resolution, interest on
cy m the Series 1998 Bonds is excluded from gross income for purposes of Federal income taxation and the Series 1998 Bonds are exempt from all
m c present intangible personal property taxes imposed pursuant to Chapter 199, Florida Statutes. See, however, "TAX EXEMPTION" herein
o
`for a description of certain Federal minimum and other special taxes that may affect the tax treatment of interest on the Series 1998 Bonds.
o
S m c
a o 0 $19,500,000*
;- y CITY OF OCOEE, FLORIDA
6 O s 0 Transportation Refunding and Improvement Revenue Bonds,
r;V
N M a Series 1998
a u «
o o Dated: October 1, 1998 Due: October 1
e " a (See inside cover)
m c 5 The City of Ocoee, Florida Transportation Refunding and Improvement Revenue Bonds, Series 1998 (the "Series 1998 Bonds") are
E 00 being issuedby the City of Ocoee, Florida (the "City') in fully registered form, without coupons, in denominations of $5,000 or integral
•o e S multiples thereof in the name of Cede & Co., as nominee for the Depository Trust Company ("DTC"), an automated depository for securities
o , and clearinghouse for securities transactions. The principal and the premium, if any, on the Series 1998 Bonds will be payable upon
m y a surrender of the Series 1998 Bonds at the designated corporate office of SunTrust Bank, Central Florida, National Association, Orlando,
m m .o Florida, as Registrar and Paying Agent, or its successors. As long as DTC or its nominee, Cede & Co., is the registered owner of the Series
to 3 1998 Bonds, payments of principal of, redemption premium, if any, and interest on the Series 1998 Bonds will be made directly to Cede &
m 0 Co., which will remit such payment to participants of DTC. Such participants will, in tum, remit such payments to the beneficial owners of
uu the Series 1998 Bonds. See "BOOK -ENTRY ONLY SYSTEM" herein. Interest on the Series 1998 Bonds is payable semi-annually beginning
on
l 1 1999
on each October 1
April 1 thereafter
check or
ent to the
stered owners
at thaddres es asshown on the registration books maintainedyby the Registrar mailed
the close of business on the fifteenth day of the calendar
m `o month immediately preceding such interest payment date or, at the written request and expense of a registered owner of $1,000,000 or more
e o of Series 1998 Bonds, by wire transfer or other medium acceptable to the City and the Paying Agent.
y .EThe Series 1998 Bonds are being issued pursuant to the Constitution and the laws of the State of Florida, particularly Chapter 166,
E :•� Part II, Florida Statutes and other applicable provisions of law, the Charter of the City of Ocoee, Resolution No. 90-08, adopted by the City
a '— Commission of the City on August 21, 1990, as amended and supplemented (collectively, the "Resolution"), in particular as amended and
E y w supplemented by Resolution No. 98-13, adopted by the City Commission of the City on September 15, 1998 authorizing the Series 1998
m Bonds.
c m o Certain of the Series 1998 Bonds are subject to optional and mandatory redemption prior to maturity as set forth in this
m E t Official Statement.
o The Series 1998 Bonds er with
her legally
d m r Refunding and ImprovementrRevnue Bonds, Serig issued, es 1990, outst ding in the available
ggregate principal amountf $6,050,000 City's
the "SeTransportation990
a y u Bonds"), (b) finance the Project (as defined herein), consisting of the acquisition of rights-of-way and the design, construction, paving and
E E t improvement of certain mads and related drainage improvements within the City, (c) acquire a surety bond in an amount equal to the
Reserve Requirement for the Series 1998 Bonds for deposit into a special subaccount in the Reserve Account established for the benefit of
o .� •L the Series 1998 Bonds, and (d) pay the costs of issuance of the Series 1998 Bonds, including the municipal bond insurance policy premium.
0 0 o The Series 1998 Bonds and the interest thereon are payable solely from and secured by a prior lin on and pledge of (a) monies
N e o received by the City from (i) the Local Option Gas Tax, until the expiration of the thirty year period during which such taxes may be levied
`u n as more fully described herein and (ii) the Public Service Taxes, until released as more fully described herein and in the Resolution, and (b)
until applied in accordance with the provisions of the Resolution, certain moneys, including investments thereof, in certain of the funds and
accounts established by the Resolution (collectively, the "Pledged Revenues"). Such prior lien on and pledge of the Pledged Revenues is on a
eE c parity with the lin and pledge granted to the holders of the Series 1990 Bonds that will remain outstanding and any Additional Parity
Z 'o �0 Obligations subsequently issued pursuant to the Resolution.
v The Series 1998 Bonds and the interest thereon do not constitute a general indebtedness or general obligation of the
c a City within the meaning of any constitutional, statutory or charter provision or limitation, and the City has not pledged its
cc o full faith and credit for the payment of the principal of, redemption premium, if any, and interest on the Series 1998 Bonds
'to '— m or the making of any reserve or other payments provided for in the Resolution. No Series 1998 Bondholder shall ever have
Wo the right to require or compel the exercise of the ad valorem taxing power of the City or taxation in any form on any real or
u > , personal property of or in the City, or to use any other funds of the City other than the Pledged Revenues, for the payment
o Z m of the principal of, redemption premium, if any, and interest on the Series 1998 Bonds or the malting of any reserve or other
payments in connection therewith.
E« y Payment of the principal of and interest, when due, on the Series 1998 Bonds will be insured by a municipal bond insurance policy to
be issued by MBIA Insurance Corporation ("MBL9") simultaneously with the delivery of the Series 1998 Bonds. For a discussion of the
E terms and provisions of such policy, including the limitations thereof, see "MUNICIPAL BOND INSURANCE" herein and "APPENDIX F -
'�, u o SPECIMEN COPY OF MUNICIPAL BOND INSURANCE POLICY AND SURETY BOND" attached hereto-
- Maya
9 N N tt
M c 2 This cover page contains certain information for quick reference only. It is not a summary of the Series 1998 Bonds. Investors must
c M.2 read the entire Official Statement to obtain information essential to the making of an informed investment decision regarding the Series
E O a H 1998 Bonds.
« z : 9 The Series 1998 Bonds are offered when, as, and if issued and received by the Underwriters and subject to the receipt of an opinion as
e Series 1998 Bonds and certain other matters by Bryant, Miller and Olive, P.A-, Tampa, Florida, Bond
ertain
`n E - 0 legal matteersincidentoto the issuance and delivery of the Series 1998 Bonds will be passed upon for the City by its counsel, oley & Lardner,
m 'r W Orlando, Florida, and for the Underwriters b their counsel, Nabors, Giblin & Nickerson, PA, Orlando, Florida. The Ci has retained First
t Y City
0 Union Capital Markets, a division of Wheat Fust Securities, Inc-, Orlando, Florida, as its financial advisor with respect to the issuance of
0 0 3 the Series 1998 Bonds. It is expected that the Series 1998 Bonds in definitive form will be available for delivery in New York, New York on
" a m or about October _, 1998.
m
E a o
a a d d Ulilliam Hough & W SunTrust Equitable Securities
H u m Dated: October_, 1998
int. "Preliminary, subject to change.
and related drainage improvements within the City, (c) acquire a surety bond in an amount equal to
the Reserve Requirement for the Series 1998 Bonds for deposit into a special subaccount in the
Reserve Account established for the benefit of the Series 1998 Bonds, and (d) pay the costs of
issuance of the Series 1998 Bonds, including the municipal bond insurance policy premium.
Security and Sources of Payment for the Bonds
The Series 1998 Bonds and the interest thereon are payable solely from and secured by a
prior lien on and pledge of: (a) monies received by the City from (i) the Local Option Gas Tax, until
the expiration of the thirty year period during which such taxes may be levied as more fully described
herein, and (ii) the Public Service Taxes, until released as more fully described herein and in the
Resolution, and (b) until applied in accordance with the provisions of the Resolution, certain
moneys, including investments thereof, in the Debt Service Fund and the Construction Fund
established by the Resolution (collectively, the "Pledged Revenues"). Such prior lien on and pledge
of the Pledged Revenues is on a parity with the lien and pledge granted to the holders of the Series
1990 Bonds and any Additional Panty Obligations subsequently issued pursuant to the Resolution.
The Series 1998 Bonds and the interest thereon shall not be or constitute a general
indebtedness or general obligation of the City within the meaning of any constitutional, statutory or
charter provision or limitation, and the City has not pledged its full faith and credit for the payment
of the principal of, redemption premium, if any, and interest on the Series 1998 Bonds or the making
of any reserve or other payments provided for in the Resolution. No Series 1998 Bondholder shall
ever have the right to require or compel the exercise of the ad valorem taxing power of the City or
taxation in any form on any real or personal property of or in the City for the payment of the
principal of, redemption premium, if any, and interest on the Series 1998 Bonds or the making of
any reserve or other payments in connection therewith. See "SECURITY AND SOURCES OF
PAYMENT FOR THE SERIES 1998 BONDS" herein.
Reserve Account
The Resolution provides for the establishment and maintenance of a special subaccount in
the Reserve Account for each Series of Bonds issued pursuant to the Resolution. Upon delivery of
the Series 1998 Bonds, the City shall deposit a surety bond in an amount equal to the Reserve
Requirement into such subaccount established for the benefit of the Series 1998 Bonds. See
"MUNICIPAL BOND INSURANCE -- Debt Service Reserve Surety Bond" herein for a description
of such surety bond.
Parity Obligations
Pursuant to certain requirements set forth in the Resolution, the City may issue Additional
Panty Obligations payable from and secured by the Pledged Revenues (other than amounts on
deposit in each subaccount in the Reserve Account which amounts are pledged only for the payment
of the principal of, interest on and redemption premium, if any, on the series of Bonds for which
II
such subaccount was established) on a parity with the Series 1998 Bonds. Pursuant to the
Resolution, the City may also issue Public Service Tax Obligations payable from and secured by
Public Service Taxes on a parity with the Series 1998 Bonds. See "SECURITY AND SOURCES
OF PAYMENT FOR THE SERIES 1998 BONDS - Additional Parity Obligations" and "-Issuance
of Public Service Tax Obligations" herein.
Municipal Bond Insurance
MBIA has committed to issue a policy of municipal bond insurance (the "Policy") which will
insure the timely payment of the principal of and interest on the Series 1998 Bonds at the stated
maturity, mandatory sinking fund redemption and payment dates thereof. The insurance extends for
the term of the Series 1998 Bonds and cannot be canceled by the Insurer. Payment under the Policy
is subject to the conditions described under the caption "MUNICIPAL BOND INSURANCE - Bond
Insurance Policy" herein.
Historical and Projected Coverage of the Maximum Bond Service Requirement
The historical Local Option Gas Tax and Public Service Tax Revenues for the Fiscal Years
ending September 30, 1993 through 1997, the estimated Local Option Gas Tax and Public Service
Tax Revenues for the Fiscal Year ended September 30, 1998 and the historical and projected
coverage afforded thereby based on the Maximum Bond Service Requirement for the Bonds are set
forth in "SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 1998
BONDS - Historical and Projected Coverage of the Maximum Bond Service Requirement."
The amounts and the availability of any of the sources of Pledged Revenues are subject to
change (including reduction or elimination) as a result of changes in State or federal law or such
factors as changing economic conditions, reduction in gas consumption resulting from a shortage
in supply or an increase in the price of oil, changing physical or social characteristics of the City, and
other future conditions or events not presently ascertainable.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK)
III
[This page intentionally left blank]
OFFICIAL STATEMENT
$19,500,000'
CITY OF OCOEE, FLORIDA
Transportation Refunding and Improvement Revenue Bonds,
Series 1998
INTRODUCTION
The purpose of this Official Statement, including the cover page, the Summary Statement and
all appendices, is to set forth certain information in connection with the sale by the City of Ocoee,
Florida (the "City") of its $19,500,000* aggregate principal amount of Transportation Refunding and
Improvement Revenue Bonds, Series 1998 (the "Series 1998 Bonds").
The Series 1998 Bonds are being issued pursuant to the Constitution and Laws of the State
of Florida, including Chapter 166, Part 11, Florida Statutes and other applicable provisions of law (the
"Act"), the Charter of the City of Ocoee, Resolution No. 90-08, adopted by the City Commission of
the City on August 21, 1990, as amended and supplemented (collectively, the "Resolution"), in
particular as amended and supplemented by Resolution No. 98-13, adopted by the City Commission
of the City on September 15, 1998.
The Series 1998 Bonds are being issued, together with other legally available funds to:
(a) refund a portion of the City's Transportation Refunding and Improvement Revenue Bonds, Series
1990 (the "Series 1990 Bonds"), which will be outstanding in the aggregate principal amount of
$1,540,000 following the issuance of the Series 1998 Bonds, (b) finance the Project (as defined
herein), consisting of the acquisition of rights-of-way and the design, construction, paving and
improvement of certain roads and related drainage improvements within the City, (c) acquire a surety
bond in an amount equal to the Reserve Requirement for the Series 1998 Bonds for deposit into the
Reserve Account established for the benefit of the Series 1998 Bonds, and (d) pay the costs of
issuance of the Series 1998 Bonds, including the municipal bond insurance policy premium. For
additional information concerning the use of the proceeds of the Series 1998 Bonds, see
"ESTIMATED SOURCES AND USES OF FUNDS" herein.
The Series 1998 Bonds and the interest thereon are payable solely from and secured by a
prior lien upon and a pledge of: (a) monies received by the City from (i) the Local Option Gas Tax,
until the expiration of the thirty year period during which such taxes may be levied as more fully
described herein, and (ii) the Public Service Taxes, until released as more fully set forth herein and
in the Resolution, and (b) until applied in accordance with the provisions of the Resolution, certain
moneys, including investments thereof, in the Debt Service Fund and the Construction Fund
established by the Resolution, collectively the "Pledged Revenues"). Such prior lien on and pledge
of the Pledged Revenues is on a parity with the lien and pledge granted to the holders of the Series
Preliminary, subject to change.
1990 Bonds and any Additional Parity Obligations subsequently issued pursuant to the Resolution
(together with the Series 1998 Bonds, collectively, the 'Bonds"). The lien of and pledge of Public
Service Taxes is also on a parity with the lien and pledge granted to the holders of any Public Service
Tax Obligations subsequently issued pursuant to the Resolution. For additional information
concerning the security for and source of payment of the Series 1998 Bonds, see "SECURITY AND
SOURCES OF PAYMENT FOR THE SERIES 1998 BONDS" herein.
This Official Statement speaks only as of its date and the information contained herein is
subject to change.
Capitalized terms used but not defined in this Official Statement have the same meanings as
used in the Resolution, unless the context clearly indicates otherwise. Complete descriptions of the
terms and conditions of the Series 1998 Bonds are set forth in the Resolution, a summary of certain
provisions of which is attached to this Official Statement as "APPENDIX C - COPY OF THE
RESOLUTION." The description of the Series 1998 Bonds, the documents authorizing and securing
the same, and the information from various reports and statements contained herein are not
comprehensive or definitive. All references herein to such documents, reports and statements are
qualified by the entire, actual content of such documents, reports and statements. Copies of such
documents, reports and statements referred to herein that are not included in their entirety in this
Official Statement may be obtained, after payment of applicable copying and mailing costs, from the
City of Ocoee, at 150 North Lakeshore Drive, Ocoee, Florida 34761, Attention: City Manager.
SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 1998 BONDS
General
The Series 1998 Bonds are payable solely from and secured by a prior lien upon and pledge
of: (a) monies received by the City from (i) the Local Option Gas Tax, until the expiration of the
thirty year period during which such taxes may be levied as more fully described herein and (ii) the
Public Service Taxes, until released as more fully described herein and in the Resolution, and
(b) until applied in accordance with the provisions of the Resolution, certain moneys, including
investments thereof, in the Debt Service Fund and the Construction Fund established by the
Resolution (collectively, the 'Pledged Revenues"). In the Resolution, the City irrevocably pledges
the Pledged Revenues to the payment of the principal of, redemption premium, if any, and interest
on the Bonds and all other payments required under the Resolution.
The Series 1998 Bonds and the interest thereon do not constitute a general indebtedness
or general obligation of the City within the meaning of any constitutional, statutory or charter
provision or limitation, and the City has not pledged its full faith and credit for the payment
of the principal of, redemption premium, if any, and interest on the Series 1998 Bonds or the
making of any reserve or other payments provided for in the Resolution. No Series 1998
Bondholder shall ever have the right to require or compel the exercise of the ad valorem taxing
2
is a final official statement, it must be available from the MSRB. The City shall clearly identify each
document incorporated by reference.
SECTION 7. DISSEMINATION AGENTS. The City 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 agent, with or without appointing a successor dissemination
agent.
SECTION 8. TERMINATION. The City's obligations under this Disclosure Certificate
shall terminate upon (A) the legal defeasance, prior redemption or payment in full of all of the Series
1998 Bonds, or (B) the termination of the continuing disclosure requirements of the Rule by
legislative, judicial or administrative action.
SECTION 9. AMENDMENTS. Notwithstanding any other provision of this Disclosure
Certificate, the City may amend this Disclosure Certificate, and any provision may be waived, if such
amendment or waiver is supported by an opinion of counsel that is nationally recognized in the area
of federal securities laws, to the effect that such amendment or waiver would not, in and of itself,
cause the undertakings herein to violate the Rule if such amendment or waiver had been effective
on the date hereof but taking into account any subsequent change in or official interpretation of the
Rule.
SECTION 10. ADDITIONAL INFORMATION. Nothing in this Disclosure Certificate
shall be deemed to prevent the City from disseminating any other information, using the means of
dissemination set forth in this Disclosure Certificate or any other means of communication, or
including any other information in its annual information described in Section 2 hereof or notice of
occurrence of a significant event described in Section 3 hereof, in addition to that which is required
by this Disclosure Certificate. If the City chooses to include any information in its annual
information or notice of occurrence of a significant event in addition to that which is specifically
required by this Disclosure Certificate, the City shall have no obligation under this Disclosure
Certificate to update such information or include it in its fixture annual information or notice of
occurrence of a significant event.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
E-5
SECTION 11. OBLIGATED PERSONS. If any person, other than the City, becomes an
Obligated Person (as defined in the Rule) relating to the Series 1998 Bonds, the City shall use its best
efforts to require such Obligated Person to comply with all provisions of the Rule applicable to such
Obligated Person.
ATTEST:
Jean Grafton, City Clerk
CITY OF OCOEE, FLORIDA
0
S. Scott Vandergrift, Mayor
Executed on: , 1998
E-6
(SEAL)
APPENDIX F
SPECIMEN COPY OF
AIUNICIPAL BOND INSURANCE POLICY AND SURETY BOND
[This page intentionally left blank]
A01BI 1
FINANCIAL GUARANTY INSURANCE POLICY
MBIA Insurance Corporation
Armonk, New York 10504
Policy No. [NUMBER]
MBIA Insurance Corporation (the "Inure&% in consideration of the payment of the premium and subject to the terms of this policy, hereby
unconditionally and irrevocably guarantees to any owner, as hereinafter defined, of the following described obligations, the frill and complete payment
required to be made by or on behalfof the Issuer to LINSERTNAME OF PAYING AGENT] or its successor (the'Paying Agent") of an amount equal
to (i) the principal of (either at the stated maturity or by any advancement of maturity pursuant to a mandatory sinking fiord payment) and interest on,
the Obligations (as that tern is defined below) as such payments shall become due but shall not be so paid (except that in the event of any acceleration
of the due date of such principal by reason of mandatory or optional redemption or acceleration resulting from default or otherwise, other than any
advancement of maturity pursuant to a mandatory sinking ford payment, the payments guaranteed hereby shall be made in such amounts and at such
times as such payments of principal would have been due had there not been any such acceleration), and (u) the reimbursement of any such payment
which is subsequently recovered from any owner pursuant to a final judgment by a court of competent jurisdiction that such payment constitutes an
avoidable preference to such owner within the meaning of any applicable banlmrptcy law. The amounts referred to in clauses (ii) and Cu) of the
preceding sentence shallbe referred to herein collectively as the "Insured Amounts." "Obligations" shall mean:
(p�1
[LEGALNAMEOFL SUE]
Upon receipt oftelephonic or telegraphic notice, such notice subsequently confirmed in writing by registered or certified marl, or upon receipt ofwritien
notice by registered or certified mail, by the Insurer from the Paying Agent or any owner of an Obligation the payment of an Insured Amount for which
is then due, that such required payment has not been made, the Insurer on the due date of such payment or within one business day after receipt of notice
of such nonpayment, whichever is later, will make a deposit of funds, in an account with State Sleet Bank and Tnrst Company, NA., in New York,
New York, or its successor, sufficient for the payment of any such ]nsured Amounts which are then due. Upon presentment and surrender of such
Obligations or presentment of such other proof of ownership of the Obligations, together with any appropriate instruments of assignment to evidence
the assignment of the hnsured Amounts due on the Obligations as are paid by the Insurer, and appropriate instnunents to effect the appointment of the
Insurer as agent for such owners ofthe Obligations in any legal proceeding related to payment oflnsured Amounts on the Obligations, such instruments
being in a form satisfactory to State Street Bank and Trust Company, NA., State Street Bank and Tmst Company, NA. shall disburse to such owners,
or the Paying Agent payment of the Insured Amounts due on such Obligations, less any amount held by the Paying Agent for the payment of such
Insured Amounts and legally available therefor. This policy does not insure against loss of any prepayment premium which may at any time be payable
with respect to any Obligation.
As used herein, the term 'owner' shall mean the registered owner of any Obligation as indicated in the books maintained by the Paying Agent, the
Issuer, or any designee of the Issuer for such purpose. The tern owner shall not include the issuer or any party whose agreement with the Issuer
constitutes the underlying security for the Obligations.
Any service of process on the Insurer may be made to the Insurer at its offices located at 113 King Street, Armonk, New York 10504 and such service
of process shall be valid and binding.
This policy is non -cancellable for any reason. The premium on this policy is not refundable for any reason including the payment prior to maturity of
the Obligations.
The insurance provided by this policy is not covered by the Florida Insurance Guaranty Association created under chapter 631, Florida Statutes
IN WITNESS WHEREOF, the Insurer has caused this policy to be executed in facsimile on its behalfby its duly authorized officers, this [DAY] day of
[MONTH, YEAR].
COUNTERSIGNED: MBIA Insurance Corporation
Resident Licensed Agent
City, State
STD -RCS -FL{
4195
Pres P*� Attest: q/��A
Assistant Secretary
ANNEX A
DEBT SERVICE RESERVE
SURETY BOND
MBIA Insurance Corporation
Armonk, New York 10504
Surety Bond No. XXXXXX
MBIA Insurance Corporation (the "Insurer"), in consideration of the payment of the premium and subject to the
terms of this Surety Bond, hereby unconditionally and irrevocably guarantees the full and complete payments that
are to be applied to payment of principal of and interest on the Obligations (as hereinafter defined) and that are
required to be made by or on behalf of [Name of Issuer] (the "Issuer") under the [Title of the Document] (the
"Document") to [Name of Paying Agent], (the "Paying Agent'), as such payments are due but shall not be so paid,
in connection with the issuance by the Issuer of [Title of the Obligations] (the "Obligations"), [if parity " together
with any bonds issued on a parity therewith,"], provided, that the amount available hereunder for payment
Pursuant to any one Demand for Payment (as hereinafter defined) shall not exceed [a: FIXED COVERAGE [Dollar
Amount of Coverage] or the debt service reserve fimd requirement for the Obligations (as set forth in the
Document), whichever is less (the "Surety Bond Limit"); provided, further, that the amount available at any
particular time to be paid to the Paying. Agent under the terms hereof (the "Surety Bond Coverage") shall be
reduced and may be reinstated from time to time as set forth herein.] or [b: VARIABLE COVERAGE the annual
amount set forth for the applicable bond year on Exhibit A attached hereto (the "Surety Bond Limit"); provided,
further, that the amount available at any particular time to be paid to the Paying Agent under the terms hereof (the
"Surety Bond Coverage") shall be reduced and may be reinstated from time to time as set forth herein.]
1. As used herein, the term "Owner" shall mean the registered owner of any Obligation as indicated in the books
maintained by the applicable paying agent, the Issuer or any designee of the Issuer for such purpose. The term
"Owner" shall not include the Issuer or any person or -entity whose obligation or obligations by agreement
constitute the underlying security or source of payment for the Obligations.
2. Upon the later of. (i) three (3) days after receipt by the Insurer of a demand for payment in the form attached
hereto as Attachment 1 (the 'Demand for Payment"), duly executed by the Paying Agent; or (ii) the payment date
of the Obligations as specified in the Demand for Payment presented by the Paying Agent to the hrsurer, the
Insurer willmake a deposit offunds in an account with State Street Bank and Trust Company N_A., in New York
New York, or its successor, sufficient for the payment to the Paying Agent, of amounts th i are then due to the
Paying Agent (as specified in the -Demand for Payment) subject to the Surety Bond Coverage:
. 3. Demand for Payment hereunder may be made by prepaid telecopy, telex, TWX or telegram of the executed
Demand for Payment clo the Insurer. If a Demand for Payment made hereunder does not, in any instance, conform
to the terms and conditions of this Surety Bond, the Insurer shall give notice to the Paying Agent, as promptly as
reasonably practicable, that such Demand for Payment was not effected in accordance with the terms and
conditions of this Surety` Bond and briefly state the reason(s) therefor. Upon being notified that such Demand for
Payment was not effected in accordance with this Surety Bond, the Paying Agent may attempt to correct any such
nonconforming Demand for Payment if and to the extent that, the Paying Agent is entitled and able to do so.
4. The amount payable by the Insurer under this Surety Bond pursuant to a particular Demand for Payment shall
be limited to the Surety Bond Coverage. The Surety Bond Coverage shall be reduced automatically to the extent of
each payment made by the Insurer hereunder and will be reinstated to the extent of each reimbursement of the
Insurer pursuant to the provisions of Article II of the Financial Guaranty Agreement dated the date hereof between
the Insurer and the [Issuer or Obligor] (the "Financial Guaranty Agreement"); provided, [ANNUAL. PREMIUM
OPTION: that no premium is due and unpaid on this Surety Bond and] that in no event shall such reinstatement
exceed the Surety Bond Limit The Insurer will notify the Paying Agent in writing within five (5) days of such
reimbursement that the Surety Bond Coverage has been reinstated to the extent of such reimbursement pursuant to
the Financial Guaranty Agreement and such reinstatement shall be effective as of the date the Insurer gives such
notice. The notice to the Paying Agent will be substantially in the form attached hereto as Attachment 2.
5. Any service of process on the Insurer or notice to the Insurer may be made to the Insurer at its offices located
at 113 King Street Armonk, New York 10504 and such service of process shall be valid and binding.
6. The term of this Surety Bond shall expire [ANNUAL PREMIUM OPTION: ,unless cancelled pursuant to
paragraph 9 hereof,] on the earlier of (i) [MATURITY DATE] (the maturity date of the Obligations being
currently issued), or (it) the date on which the Issuer has made all payments required to be made on the Obligations
pursuant to the Document
7. The premium payable on this Surety Bond is not refundable for any reason, including the payment prior to
maturity of the Obligations.
8. [OPTIONAL FIRST SENTENCE: This Surety Bond shall be governed by and interpreted under the laws of
the State of (STATE)]. Any suit hereunder in connection with any payment may be brought only by the Paying
Agent within (I or 3 years] after (h) a Demand for Payment, with respect to such payment, is made pursuant to the
terms of this Surety Bond and the Insurer has failed to make such payment, or (ii) payment would otherwise have
been due hereunder but for the failure on the part of the Paying Agent to deliver to the Insurer a Demand for
Payment pursuant to tite terms of this Surety Bond, whichever is earlier.
[NOS. 9 and 11 are OPTIONAL]
9. Subject to the terms of the Document, the Issuer shall have the right, upon 30 days prior written notice to the
Insurer and the Paying Agent, to terminate this Surety Bond. In the event of a failure by the Issuer to pay the
premium due on this Surety Bond pursuant to the terms of the Financial Guaranty Agreement, the Insurer shall
have the right upon [No. of days] days prior written notice to the Issuer and the Paying Agent to cancel this Surety
Bond. No Demand for Payment shall be made subsequent to such notice of cancellation unless payments are due
but shall not have been so paid in connection with the Obligations.
10. There shall be no acceleration payment due under this Policy unless such acceleration is at the sole option of
the Insurer.
11. This policy is not covered by the Property/Casualty Insurance Security Fund specified in Article 76 of the
New York Insurance Law.
In witness whereof, the Insurer has caused flus Surety Bond to be executed in facsimile on its behalf by its duly
authorized officers, this [DATE] day of [MONTKYEAR]
In witness whereof, the Insurer has caused this Surety Bond to be executed in facsimile on its behalf by its duly
authorized officers, this day of October, 1995
SB-DSRF-9[STATE CODE]
4195
EXHIBIT A
Surety Bond No. XXXXXX
Bond Year Maximum Annual Debt Service
L99 to 199 S
199 to 199
199 to 199
DEMAND FOR PAYMENT
MBIA Insurance Corporation
113 King Street
Armord4 New York 10504
Attention: President
Attachment 1
Surety Bond No. XXX=
19
Reference is made to the Surety Bond No. XJG= (the "Surety Bond") issued by the MBIA Insurance
Corporation (the "Insurer). The terms which are capitalized herein and not otherwise defined have the meanings
specified in the Surety Bond unless the context otherwise rewires.
The Paying Agent hereby certifies that:
a) In accordance with the provisions of the Document (attached hereto as Exhibit A), payment is due to the
Owners of the Obligations on (the "Due Date") in an amount equal to $ (the "Amount
Due").
b) The debt service reserve fund requirement for the Obligations is $
c) The amounts legally available to the Paying Agent on the Due Date will be $ less than the Amount
Due (the "Deficiency").
d) The Paying Agent has not heretofore made demand under the Surety Bond for the Amount Due or any
portion thereof.
The Paying Agent hereby requests that payment of the Deficiency (subject to the Surety Bond Coverage) be
made by the Insurer under the Surety Bond and directs that payment under the Surety Bbnd be made to the
following account by bank wire transfer of federal or other immediately available funds .jd accordance with the
terms of the Surety Bond:
[Paying Agent's Account]
Any Person Who Knowingly And With Intent To Defraud Any Insurance Company Or Other
Person Files An Application For Insurance Or Statement Of Claim Containing Any Materially
False Information, Or Conceals For The Purpose Of Misleading, Information Concerning Any
Fact Material Thereto, Commits A Fraudulent Insurance Act, Which Is A Crime, And Shall Also
Be Subject To A Civil Penalty Not To Exceed Five Thousand Dollars And The Stated Value Of
The Claim For Each Such Violation.
[PAYING AGENT]
By
Its
NOTICE OF REINSTATEMENT
[Paying Agent)
[Address)
Attachment 2
Surety Bond No. XXXXXX
,19
Reference is made to the Surety Bond No. XXXXXX (the "Surety Bood") issued by the MBIA Insurance
Corporation (the "Insurer"). The terms which are capitalized herein and not otherwise defined have the meanings
specified in the Surety Bond unless the context otherwise requires,
The Insurer hereby delivers notice that it is in receipt of payment from the Obligor pursuant to Article II of the
Financial Guaranty Agreement and as of the date hereof the Surety Bond Coverage is S
MBIA Insurance Corporation
President
Attest:
Assistant Secretary
RESOLUTION NO
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OCO£E,
YLUnUA, AUTHORIZING THE REFUNDING OF CERTAIN PRESENTLY
OUTSTANDING OBLIGATIONS OF THE CITY OF OCOEE, FLORIDA)
AUTHORIZING THE ACQUISITION OF RIGHTS-OF-WAY, DESIGN,
CONSTRUCTION, PAVING AND IMPROVEMENT OF CERTAIN STREETS
AND INTERSECTIONS WITHIN AND WITHOUT THE CITY LIMITS OF
THE CITY OF OMEE, FLORIDA; AUTHORIZING THE ISSUANCE OF
NOT EXCEEDING $7,000,000 TRANSPORTATION REFUNDING AND
IMPROVEMENT REVENUE BONDS OF THE CITY TO BE APPLIED TO
REFUND THE PRINCIPAL, INTEREST, AND REDEMPTION PREMIUM,
IF ANY, IN RESPECT TO SUCH PRESENTLY OUTSTANDING OBLI-
GATIONS AND TO FINANCE THE COST OF SUCH PROSECT; PLEDGING
REVENUES DERIVED FROM THE VOCAL OPTION GAS TAX, THE
PUBLIC SERVICE TAXES AND CERTAIN INVESTMENT EARNINGS FOR
THE PAYMENT OF SAID BONDS; FURTHER PLEDGING AMOUNTS ON
DEPOSIT IN THE. DEBT SERVICE FUND AND THE CONSTRUCTION
FUND CH£ATID PURSUANT TO THIS RESOLUTION; PROVIDING FOR
THE RELEASE AND EXTINGUISHMENT OF ME LIEN ON SOON PUBLIC
SERVICE TAXES; MAKING CERTAIN COVENANTS AND AGREEMENTS
IN CONNECTION THSREWITH: PROVIDING FOR THE SEVERABILITY
OF INVALID PROVISIONS: PROVIDING FOR THE REPEAL OF ANY
RESOLUTIONS IN CONFLICT WITH THE PROVISION. OF THIS
RESOLUTION; PROVIDING I PROVIDCERTAIN A OTHER
MA OATS'N CONCTION
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF CODES,
FLORIDA:
SECTION 1. AUTHORITY FOR THIS RESOLUTION. This Resolution
is adopted pursuant to The provisions of the Constitution of no
State of Florida; Ne Charter of the City of Ocoee, Chapter 166,
Part II, Florida Statutes, and other applicable provisions oI law.
SECTION 2. C£FINITIONS. The following terms snall have the
following meanings herein, unless the [ext expressly requires
ethervis¢. Words importing singular number shall include The
plural number n eaen a and vice versa, and wards importing
persons shall include firms and sr,crati.mi
A. -Ra,ccirad Obligations" shall mean U.S. Treasury Certifi-
.Ore.,'Notes and Bonds (including State and Local Government Series
^SL,S'•), direct abligatiens .f the Treasury Which have been
Stripped by the Treasury itself, •'CATS^ and "TIGRS" and obligations
.sued by The following agencies which are backed by the full Join
aid credit of the U.S.:
1 e e.—nee-Fm..r[ Rank: Direct obligations cos
fully guaranteed certificates of beneficial ownr-
Z ship Certificates of bene-
ficial ownersnvp
E. -Amortization Installment" With respect to any Term Bonds
Of a series, shall mean an amount so designated for mandatory prs-
cipal iietallments ce mandatary C ...... ded Amounts payments (Lot
mandatory call .r othervise) payable on Buy Term Bonds issued under
the provisions of this Resolutionorany subsequent resolution
authorizing Additional Parity Obligations.
F. ••Bond Counsel-- shall an a firm of nationally recognized
attorneys at lata acceptable to Ne Issuer and experienced in the
issuance of bends o other debt obligations by governmental units
such as the Issuers
G. •mond Insurer'• shall mean, with respect to any series of
Bonds, no bend insurance company .r Companies, 1f any, which
issues a Policy of insurance insuring the payment of principal of
and interest on such Bonds.
H. "Bond Service Requirement-- shall mean for a given year the
remainder after subtracting any accrued and funded interest for
that year that has been deposited into the Debt Service Fund for
that purpose from the sum .f:
(1) Tae amount required to pay the interest coming due
on Head. during that year;
(Z) The amount required to pay the principal or Com-
pounded Amounts of serial Bonds in Nat ear, and the princi-
pal or Compounded Amounts of Is= Bends maturing in that year
that are not included in Ne Amortization Installments far
such Term Honda; and
(Z) The Amortization Installments for all series of I..
Bends for Cast year.
I. "Bonds'• shall mea. Ne City of Dome., Florida, Traneperes-
tion Refunding and Improvement Revenue Heide, Series 1990, Bergin
authorized to be issued and any Additional Parity Obligations
issued hereafter.
T. "Business Day- shall me 'any day ether Nan a Saturday,
Sunday or a day on which backing institutions located in the State
of Florida are required .r authorised to remain closed.
K. 'Capital Appreciation Bends' shall mean the aggregate
principal amount of Ne Bonds Nat bear interest payable lely at
maturity or upon redemption prior to maturity in Ne secants
determined by reference to Me Compounded Amounts, all as shall be
determined by subsequent resolution of the Issuer.
L. -Clerk^ shall mean the City Clerk of Ne Issuer.
6. U.S. Maritime Administration: Guaranteed Title XI
financing
y, New Communities naben r : U.S. g.V.s..nt guaran-
teed debentures
S. U.S. public Hocsino Notes and Bonds: U.S. gowern-
ent guaranteed public housing notes and bonds
9. .
Project Nets; Local Authority Bends
10. Prerefunded municipal bonds must be rated ^Asa'• by
Moody's or ^AAA" by SAP. If the issue is only rated
by SSP (i.e., there is no M..dy's rating), than the
prerefunded bonds most have been presefunded with
assn, direct U.S. or U.S. guaranteed obligations,
r AAA -rated prerefunded municipals inert satisfy
Nis condition.
B. "Act" shall mean Chapter 166, Part II, Florida Statutes,
and other applicable previsions of law.,
C. "Additional Parity Obligations- shall ... n additional
obligations issued in compliance with the terms, Conditions and
limitations contained herein and Which (i) shall have a first lien
on the Pledged Revenues equal to that of the Series 1990 Bonds and
with respect to that portion of the Pledged Revenues constituting
the Public Service Texas, unless the lien thereon shall have been
ralaased as orovideld herein, Ne Public service Tax Obligations,
(ii) hall he payable from the proceeds of the Pledged Revenues on
a
parity with the Series 1990 Bonds, (iii) shall be peyabla Came
the proceeds of the Public Service Taxes, unless the lien there..
shall have been released am provided herein, .n a parity with
Public Service Tar obligations, and (iv) shall race equally in all
other respeortE with the Series 1990 Bands. Notwithstanding Ne
foregoing, amounts on deposit in each sobace-mat in Ne Reserve
Account shall be pledged only Ior the payment Of the principal of,
interest. o and redemption premiums, if -my, on e series of
Bonds for whon
ich suth subacc.unt was established Bud for no ether
series of Bonds.
D. ^Agreement" .r "Escrow Deposit Agreement" shall mean an
agreement at agreements by and between the Issuer aha a beak or
trust ...fear to be selected and named by the Issuer prior to the
sale of the Series 1990 Bonds, the purpose of which is to provide
for Che payment of Ne Refunded Bonds. Such agreement shall be in
substantially the form attached hereto as Exhibit A and incorpo-
rated herein by safer¢...
H. "...pounded Amounts" shall ... n the amounts as to which
reference is made that establish the amounts payable at maturity
at upon redemption prier [0 maturity on the Capital Appreciation
Binds. Bush ...or. shall be determined by subsequent resolution
of the Issue[. '
N. "Construction Fund- shall mean Ne City .f Ocoee It..,or-
.tested£ame [ail shed pureuentttoeSection 16(E) h...f.ion Fund
o. ^consent interest Randall shall mean fine aggregateprsci-
pal amount .f the Bosds that bear interest Payable semi-annually
such dates.. dateas shall be determined subs t raseluti.n of
Ne Issuer. The Current Interest Bonds include the aggregate grin-
s
. cipal sm.unt .f Serial Current Interest Bonds and .9 be, deter-
mTermined f resolution interelt Bonds, as shall
by subsequentof
P. "Debt Service Fund" shall mean Ne City of Ocoee Itansper-
Tation Refunding d Imptove.ent Revenue Bond Debt Service Fund
created aid established pursuant to Section-iS(S) hereof.
Q. 'Escrow Agent" shall mean a bank with trust powers .
trusthcomwith aappointed
y inteeaso[ahenIssuer as a party to the Agreement
su a assigns.
R. "Fiscal Year" shall mean the period commencing on October
1 of eaen year and ending on the next succeeding September 30, as
such ether period designated by Ne Issuer as its Fiscal Year.
S. "Holder of Bonds" or "B.ndoolders" or any similar term
shall m any person who shall be Ne registered Owner Of any
Outstanding Bond.
T. ^Investment Securities' shall mean Ne following, if and
to the extent authorized PuraW.mt to Ne laws of Ne State of
Florida:
1. Direct obligations of the United States of America
(including obligations is cued or held in book -entry farm on
Ne books of Ne Department of Ne Treasury) or obligations
Ne principal .f and interest on Which are Ynconditionally
guaranteed by no United States .f America.
E. Bonds, debentures, notes or other evidence of
indebted .... issued or federal agences and providednsun bbligati-- are rockedOf Meiby
i
Ne full faith and credit of the United States:
.U.S- Exm.�_es k: Direct obligations or
fully guaranteed astifdcat.f beneficial Ownership
4
b%jarmers
HomeAdmin' tea Certificates of
beneficial ownership
U. Federal Financirm Bank
d. Federal Xonbi�n Administration Debentures
rel sParticipation
Certificates
t.
guaranteed
: d 1. -guaranteed rtgage-➢acked bonds{ GNMA
guara
- nteed pass-Yhrtugh obligations
g. U.S MBEitiM. Admini•rle i Guaranteed Title
IX financing
b. New Communities O b n U.S. gevetnaeni
guaranteed debentures
i. U.B. Public Housing Notes and Bond: U.S.
goverwent guaranteed public housing notes and bands
Project Notes; Local AUNority Bonds
3. Bonds, debentures, notes or ether evidence of indebt-
edness issued or guaranteed by any of the following U.5.
government agencies (non -Lull faith and credit agencies):
Federal Nom Senior debt
obligations
b. Fedeeal Nems i.oan Mortgage Ceroeration: partic-
ipation Certificates; SeniO[ debt obligaticcs
Mortgage-backed securities and senior debt obligations
d. Stud n[ n Mark inn A torten: Senior debt
obligations
a. Money market funds registered Under the Federal
Investment Company Act of 1940, whose shares are registered
Under the Federal S ... titles Act of 1933, and having a rating
by S&P of AAAm-G] MTm; or AAm.
5. Certificates of deposit ...red at all times by ..l -
lateral described in (1) and/or (2) above. Such certificates
.at
be issued by commercial banks, z i.gs and lean a
tions or mutual savings banks. The collateral must be held
5
The t
3o 30 aava
iii. The collateral Most be delivered to the
municipal entity, trustee (if trustee is not supplying
the Collateral) or third party acting as agent lot the
trustee (if the trustee is supplying the collateral)
before/simultaneous with payment (perfection by ....... of certificated securities).
1v. valuation of fol
On
AI
devvsit_ in�Tbe Res A hen gal. d
accrued ra�g- at ocurrent market price
(1) Tne value et collateral must be equal
to 103% of the amount of cash transferred by
the sonicipal entity Y. the dealer back or
security firm under the repurchase agreement
Plus accrued interest. If the value Of securi-
ties held as collateral slips below 103% of the
value of the cash transferred by municipality,
then additional cash and/or acceptable securi-
ties at be transferred. IL, however, the
securities used as collateral ate FNMA or F.YAC,
then the value of the collateral most equal
105%. Securities on deposit in each aubacevunt
n the Reserve Account shall be valued as
determined by the resolution of the Issuer
authorizing the series of Bonds Or which such
sob-c-ount vas established.
C. -lagal opinion must be delivered to the municipal
entity to the effect that the - egal i.. agreement meets
gundeline5c wrier state law for legal investment of Bublic
gsm ,.i
12. Units of participation in the Local Government
Surplus Funds Trust Fund established pursuant to Chapter 210,
Part Iv, Florida Statutes, or any similar common trust fwd
which i established pursuant to the laws of the Stats of
Florida as a legal depository of public moneys and for which
the Florida State Board of Administration aces as Custodian;
and
13. Any ether investment permitted under applicable
Florida and United States lav and acceptable to MBIA, for s
firehallas the nSerat iees 319 default under 90 Bond. l be Outstanding and such
band insurance securing such Series 1990 Bonds of municipal
by a third party and the bondholder. must have a perfected
first security interest in the collateral.
6. Certificates of deposit, savings ...aunts, deposit
accounts or money market deposits which are fully insured by
Federal Deposit Insurance Corporation or Federal Savings and
Lean Insurance Corporation.
]. Investment Agreements, including guaranteed invest-
ment contracts, acceptable to MBIA.
S. Commercial paper rated, at the time of purchase,
"Prime - 1" by Moody's or "A-1" or better by S11-
9. Bonds or notes issued by any state or municipality
which are rated by Moody's or SLP in one of the two highest
rating categories assigned by such agencies.
10. Federal funds or bankers acceptances with a mokinum
term of one year of any bank which has an unsecured, uninsured
and unguaranteed obligation rating of "Prime - 1" or 1A3" or
better by Moody's and "A-1" or "A" or better by SEP.
11. Repurchase agreements Shat provide for the transfer
of securities from a dealer back me securities firm (seller/
borrower) to a municipal entity (buyer/lender), and the trans-
fer of cash from a municipal entity to the dealer back or
securities firm with a .agreement that the dealer bank o
securities firm will repay the cash plus a yield to the muni-
cipal entity in exchange for the securities at a specified
date. Repurchase Agreements =at satisfy the following
criteria g be approved by mix:m
Utitl end . dealer bank or secorit
1. Primary dealers on the Federal Reserve reporting
dealer list, or
li. Banks rated. ^A" or above by SSP and Moody's.
b. The written repurchase aSiccment must indinds the
fgllowf no
i. Secerities which a,, �z,d,table for transfer
nee:
(A) Direct U.S. governments, or
(B) Federal agencies backed by the full faith
and credit of the U.5. government
6
U. "Issuer" -or "City" shall mean the City of Ocoee, Florida.
V. "Local 01tian Gas Tax" shall mean the Focal option as
Tax received by the Issuer under the authority of Section 336.025,
Florida Statutes, and an Interl.d.l Agreement dated July 21, 1983,
s amended on June 27, 1985, between Orange County, Florida and
the City of Orlando, Florida. As used herein, the term "Local
Optic. Gas Tax" shall include any local option gas taxes authorized
pursuant to Section 336.025, Florida Statutes, as amended and
supplemented from time to time, and received by the Issuer;
including any levied in excess of the tax currently authorized
pursuant to such section.
W. "Maximum Bond Service Requirement" shall mean, as of any
particular date of calculation, the greatest amount of aggregate
Bond Service Requirement for the then current er any future Bond
Year, except that with respect to any Bonds for which Amortization
Installments have been established, thea aunt of principal coming
due on the final maturity date with respect to such Bonds shall Is
reduced by the aggregate principal amount Or Compevnded Amounts of
such Bonds that are to be -redeemed from Amortization Installments,
in each case to be made in prior Bond Years.
X. "MBIA" shall mean Municipal Bond Investors Assurance
Corporation.
Y. 'Moody's'- shall mean Moody's Investors Service, and any
assigns or successors thereto.
Z. "outstanding" Or "Bonds outstanding" shall mad. all Bonds
which have been issued pursuant to this R ... lotion . except:
(1) Bonds canceled after purchase in Ne open market or
because of paymenat or redemption prior to maturity;
(2) Bands far the payment or redemption of which Cash
funds or Acquired Obligations or any combination thereof shall
have been theretofore irrevocably set aside in a special
account with an escrow agento (whether
on an
upon or priorto am e
maturity r redemption data t y Bonds) in most
which, together with earnings on such Acquired Obligations,
n
will be sufficient to pay the principal of and interest o
much Bonds at maturity or upon their earlier redemption;
provided that, if such Bonds are to be redeemed before the
maturity thereof, notice of such redemption shall have been
given according to the requirements of this Resolution o
irrevocable instructions directing the timely publication of
such notice end directing the payment Of the principal of and
interest on all Bonds at such redemption dates shall have been
given to the escrow agent; and
Is
(3) Bonds which are deemed paid pursuant t0 this Reso-
lution or J. lieu of which other Bonds have been issued most
Sections 11 and 13 hereof.
AA. "Paying Agent" shall mean any authorized depository
designated by the Issues to serve s a as Agent for the Bonds
that shall bsve agrees to arrange for the timely payment of the
principal of, interest on and redemption premium, if any, with
aspect to the Bonds to the Owners thereof, from funds made avail-
able therefor by the Issuer and any successors designated by
subsequent r solution Of the Issuer. Morning in this Resolution
small be deemed to prohibit the Issuer from serving as Paying Agent
boosted. or from appointing one or more Paying Agents t0 serve
under this Resolution.
BE. "Pledged Revenues" shall mean collectively (i) the Local
Option Gas Tax, (ii) until released as provided herein, the Public
Service Taxes and (iii) amounts on deposit in and interest earned
on the Debt Service Fund and the Construction Fund.
CC. "public Service Tares" shall mean the tax levied by the
Issuer p...t to Section 166.231, Florida Statutes, On the
purchase Of electricity, metered Or bottled gas (natural liquefied
petroleum gas or mnnufactvred), water, fuel oil and telephone and
telegraph service.
DD. "Public Service Taxes Fund" shall mean the City of Ocoee
Transportation Refunding and Improvement Revenue Bond Public
Service Taxes Fund created and established pursuant to Section ISF
hereof.
BE. "Public Service Tax Obligations" shall mean bonds Or
other debt obligations of the Issuer authorized to be, issued
pursuant to Section SBE hereof. Public Service Tax Obligations d0
net include the Bonds.
FF. "Rebate Fund" shall mean the Rebate Fund created pursuant
to Settle. 29 of this Resolution.
GG. "Record Date" shall have the same aninge ae at torch
in Sections ] and 11 Of this Resolution.
M. "Rede.ptim. Account" shall mean the special account Of
the same name created within but Debt Service Pund.
II. "Refunded Bonds" shall mean the remaining
ing bonds outstand-
ing of the $2,145,000 City of Ocoee, Florida,Public Improvement
Revenue Bonds, Series 1981, dated November 1, 19a].
JT. "Refunding Bends" shall mean the Series 1990 Bonds.
9
W. "To= Ciurrent Interest Bonds" shall mean the aggregate
principal amount of Current Interest Bonds maturing on such dates
and in such amounts as shall be determined by suhzequent resolution
of the Issuer and for which Amortization Installments have been
designated.
SECTION 3. FINDINGS. It is hereby ascertained, determined
and declared that:
A. It is in the best interest of the Issuer aM the residents
thereof that the Issues anchorite the issuance of Bonds to provide
for the refunding and refinancing of obligations heretofore issued
by the Issuer and to provide for the acquisition, construction and
deal" Of the Series 1990 Project.
B. In order to preserve and protect the public health, safety
and welfare Of the inhabitants of the Issuer, it is necessary and
desirable to acquire, Construct and design the Series 1990 Project.
C. The e
r rom s derived fthe Public Sarvice Taxes and
Local Option GasTax are not now pledged or encumbered in any
manner, except for the payment o1 the Issuer's Refunded Bonds.
D. The Issuer deems it necessary, beneficial and in its best
interest to provide for the refunding of the Refunded Bonds. Such
refunding will be advantageous to the Issuer because it will allow
the Issuer to lengthen the amertiration Of one debt financed with
the proceeds Of the Refunded Bonds to more closely match "a life
of the improvements financed with such debt and will allow the
Issuer t0 revise certain terms and covenants in a manner that is
more beneficial to Ne Issuer.
E. The estimated sum required for the refunding o1 the
Refunded Bonds will be derived from a portion Of the proceeds of
The sale of the Series 1990 Bonds, together with certain Other
legally available funds of the Issuer.
F. A portion of the proceeds Of the Series 1990 Bonds shall
be deposited pursuant t0 the Agreement, in mount. which, together,
with earnings_ thereon, will be sufficient to make timely payments
of the interest and outstanding principal in respect to the
Refunded Bonds to mmtorltYa Such funds shall be invested pursuant
to she Agreement in such i esteems as will be sufficient to pay
such principal and interest•
G. The Bonds d0 act constitute a general indebtedness or
general obligation of she Issuer within the meaning of any comsti
tuticnal, statutes, or charter provision or limitation, and the
Issuer has not pledged its full faith and Credit for she payment
of the principal Of, redemption premium, if any, and interest On
the Bonds or of she making of any as other paym.act
M- "Registrar" shall mean a trust company or bank with trust
pavers appointed by subsequent resolution of the Issuer to serve
as Registrar pursuant to this Resolution and any smorasses. desig-
nated by subsequent resolution of the Issuer. Nothing in this
Resolution shall be deemed to prohibit the Issuer from .suing as
Registrar hereunder or from appointing one Or more Registrars to
Serve under this Resolution.
LL. -Reserve Account" shall mean the special ..Count o1 the
same name created within the Debt Service Fund together with all
out ... counts therein.
MH. "Reserve Requixement" with comp0ct to each series Of
Bonds, i1 any, shall be determined by subsequent resolution o1 the
Issuer adopted prior to the issuance oI each such series of Bonds.
NN. "Resolution" shall mean This Resolution, as the same may
be amended or supplemented from time t0 time.
00. "Revenue Fund" shall moan"the City of OOOee Ttanspoi-
taticRefunding and Improvement Revenue Bend Revenue Fund created
and established pursuant to Section IS(A) hereof.
PP. "Serial Current Interest Bonds" shall mean the aggregate
principal amount of Current Interest Bonds maturing on such dates
and in such amounts as shall be determined by subsequent resolution
of the Issuer and for which Amortization Installments have not been
designated.
QQ. "Series 1990 Bonds" shall mean the Bonds initially issued
under this Resolution, which such Bonds may be issued in one or
mare series.
M. "Series 1990 Project" Or "Series 1990 Projects" shall
mean the acquisition Of rights-of-way, design, construction, paving
and improvement of certain stteecs, intersections and draimmge
improvements within aM without the corporate limits of the Issues
and as more fully described in the Engineering Report Of
Professional Engineering Consultants, Inc., dated August 5, 1990,
which report is on file with the Clerk:,
SS. "S&P" shall mean Standard s Poor's Corporation, and any
assigns Or successors Ueres O.
W. "Term Bonds" shall mem Term Current Interest Bonds and
Term Capital Appreciation Bonds.
W. "Term Capital Appreciation Bonds" shall mean the aggre-
gate principal amount 01 Capital Appreciation Bonds maturing OR
such dates and in such amounts a shall be determined by subsequent
resolutipn of the Issuer and for which Amortitatien Installments
have been designated.
10
provided for in this Resolution. It is expressly agreed by the
Holders of the Bonds that such Bondholders sM11 never have the
right to require or compel the exercise of the ad valorem taxing
power therein LforThe theIssuer or taxation of any real Or personal property
it Payment of the principal of, redemption premium,
any, and interest on the Hinds or the making of any reserve o
other payments provided for in this Resolution. r
H. The estimated Pledged Revenues will be sufficient to pay
all ytincip.l of and interest and redemption premium on one series
1990 Bonds to be issued hereunder, as the ram become due, and to
make all other deposits or Other payments required by this Resolu-
tion.
I. The proceeds Of the Series 1990 Bonds deposited in the
construction Fund may only be used for "transportation expendi-
tures" within the meaning of Section 336.025(1), Florida Statutes.
S. The Series 1990 Bonds may be issuedI.
omer¢ series
as shall be determined by subsegment ...elution of the Issuer.
SECTION 4. AUTHORIZATION OF REFUNDING AND CONSTRUCTION OP
SERIES 1990 PROJECT. There is hereby authorized the refunding of
e Refunded Bonds in the banner provided herein. There is hereby
authorized the construction of the Series 1990 Project pursuant 'to
certain reports presently en file or to be filed with the Clerk,
including One report of Professional Engineering COnsulhanta, Inc.,
Orlando, Florida, dated as of August 5, 1990, currently on file
with the Clerk. The bast 01 such Series 1990 project in addition
to the items set forth in such reports, may include, but need not
be limited to, the acquisition of any lands, rights of ways or
nterest therein or any they properties deemed n Bary or c
me-
lenient therefor; engineering, legal and financing expams¢s,
expses ler estimates of costs; expenses for plans,specifics-
..LoGConsultants; nd surveys; the Lees Of fiscal agents, financial advisors
r perating costs incurred during the construction;
municipal bond insurance or ther Credit enhancement, including
credit enhancement to be deposited in the Reserve Account; adminis-
trative expenses relating solely to the construction of the aeries
1990 project;. the capitalization o1 interest for a¢nable
Period alter the i suance of the Series 199. Bonds; thecreation
and establishment of reasonableryes for debt service; the
discount on the sale of Ne Series ¢ 1990 Bonds, ifapplicable;
foods
Of interim advances and indebtedness including repayments
to the Other ftls of the Issuer for maneys spent o the Series
1990 Project in anticipation of the sale of the Series 1990 Bonds;
and such other costs and expenses as may be necessary or inci mars,
to the financing herein authorized and the construction nstruction 1 the
Series 1990 Project and the placing of same in operation.
11
12
Provided, however, the Issuer reserves the right, it it be
found at the time of Construction Of the Series 1990 Project that
the amounts allocated for a portion Ueteot are inadequate there-
for, to allocate additional mounts from other portions Of z id
Series 1990 Project and, if it be found at the time of construction
Of the Series 1990 Projectthem net less an the amounts ll.detsd to
certain Purposes are needed. for such purposes, to allocate D,.e
if icconn othe best to net interest ofothe I....rit isdeemed
the
Series
9necessary ani
advisable to change Or delete any Of the portions of the Strias
1990 project described above, to make such necessary changes e
deletions In such Series 1990 project as the Issuer deems ma.m..Bry
so long as all said funds are used for the purpases provided by lav
Used
and this Resolution, and, to the extent sed far C nsttuction
according. to such reports Of Professional Engineering Consultants,
acceptable -to other
the-Iasperrfirms Of [O be on fileified with the I qiY = engines
so
Prior to
disbursement of such funds. Notwithstanding the foregoing the
Proceeds Of ins Series 1990 Bonds deposited in the Construction
Fund may only be used far projects which Constitute 'transportati..
expendesurQ5- within the meaning of Section 116.025(7), Florida
SECTION 5. THIS RESOLUTION TO -CONSTITUTE CONTRACT. In Con-
sideration of the acceptance of the Bonds authdrited to be issued
hereunder by Inose who shell hold the mama from time to time, this
Resolution shall be deemed to be and shall constitute a contract
betvean the Issues and such Holders. The covenants and agreements
herein set forth to be performed by the Issuer shall be for the
equal benefit, protection and security of the legal Holders of any
and all of the Bends, all Of which shall be of equal rook and
without preference, priority or distinction Of any of the Bends
Over
any Other thereof, except as expressly provided therein and
herein.
SECTION 6. AUTHORIZATION OF SERIES 1990 BONDS. Subject and
PoOswuuant torah o the provisions hereof, obligations of the Issuer to be
Series 1990,° are authorised to be issued -mt-ti-a Refunding and Sim Choana[ Revenue Bends,
Pal amount not exceeding $7,000,000. _ 99regate psinci-
SECTION
ONS. The Seres igg
Bondsshall be issued Fin Ofully registered B form; may be 1Capital
Appreciation Bonds and/or Current Interest Bonds; shall be dated.
shall be numbered consecutively from R-1 upward if Current Intarmt
Bonds; shall be numbered from CABR-1 upward if Capital Appreciation
Bonds; shall be in the denomination of $5,000 each, Or integral
multiples thereof for the Current Interest Bonds and in $5,000
maturity mounts for the Capital Appreciation Bends or in $5,000
multiples thereof, Or such other denominations as shall be ,proved
by the of
the Seriesuer 1990. Bonds shall bear interest at such the
lot rates
13
cimt for all puxposm the same as if he has remained in Office
until such delivery. My Series 1990 Bond may bear the facsimile
signature eP ai may be signed by ..an persons who, at the actual
time of the execution of
uch Series 1990 Bend, shall be the proper
officers to sign such Series 1990 Bend although at the data of such
Series 3990 Hood such persons may net have been such officers.
SECTION 9. AUTHENTICATION OF SERIES 1990 BONDS. Only such
of the Series 1990 Bends as shall have endorsed thereon a certi-
ficate of. authentication substantially in the form hereinbelow at
forth, duly executed by the Registrar, as authenticating agent,
shall bee titled to any benefit or security under this Resolution.
No Series 1990 Bond shall be valid cur obligatory fat any purpose
unless and until such certificate of authentication shall have bean
duly executed by the Registrar, and soon certificate of Ue Aegis -
that sh Series
uch Seriestram uon any 0 990 Bend has beenBonhal be duly! authenticatedvandvSell—
zed under this Resolution. The Registrar's certificate of authen-
tication OnslOne
Series less Band shall be deemed to have been duly
executed if signed by an authesised Officer of e Registrar, but
it hall not be necessity that the same officer sign the certifi-
cate of authentication of all Of the Series 1990 Bonds that may be
issued hereunder at any one time.
SECTION 10. EXCHANGE OF 'RATES 1990 BONDS. My Series 1990
Bond, open surrender thereof at the principal corporate trust
Office of the Registrar (or if the Clerk is the Registrar, at the
office of the Clerk), together v1U an assignment duly executed by
the Bondholder or his attorney Or legal representative in such form
me shall be satisfactory to the Registrar, may, at the Option Of
the Bondholder, be exchanged for an aggregate principal amount of
Series 1990 Bends equal to the principal amount and of the sane
type of the Buries 1990 Bond Or Series 1990 Bonds se surrendered.
The°Re fistrar shall make provision for the exchange of Bonds
at the principal corporate trust office of the Registrar (or if the
Clerk is the Registrar, at the office of the Clerk).
tration of and for the
Bond. as or.,id.d in cn
ch form as shall be
registration or era
tear shall authenti
s 1990 Bond,
tared in the name Of
and in m aggregate
:TY, REGISTRATION AND TRANSFER OF
ear shall keep books for the regbs-
1-tian Of transfers of Series 1990
lution. The transfer of am, series
7nly upon such books and only upon
rar together with an assignment duly
is attorney or legal representative
'--tory to the Registrar. Upon any
the. Issuer shall execute d the
and deliver in exchange for such
- 1990 Bond or Sari.. 1990 Sends
raosteree, oI the same maturity and
ipal amount equal to Ue principal
15
not exceeding the maximum rate allowed by Florida lav, the actual
rate or rates to be determined by subsequent resolution of the
Issuer price to or upon the sale of the Series 1990 Bands; such
interest to be payable smiaac..Ily at such times as are fixed by
resolution of the Issued if current Interest Bands and to be pay-
able at maturity if Capital Appreciation Bonds; and shall mature
annually on such date in such years and amounts as will be fixed
by resolution of the Issuer prior to or upon the sale of the series
1990 Bonds; and may be serial and/or Term Bonds.
BermSeries 1990 Current Interest Bond shall bear interest
from she interest payment date memo preceding the date on which it
authenticated,im -less authenticated on an interest payment date,
in hich .... it shall bear interest from nion, interest payment
date, mr, unless authenticated prier to the first interest payment
date, in which case It shall bear interest from its date; provided,
however, that if at thetimeOf authentication payment of any
interest which is due and payable has net been made, such Series
1990 Current Interest Bond shall beat interest from the date to
which interest shall have been paid.
The Series 1990 Capital Appreciation Benda shall bear interest
only at maturity or upon redemption prior to maturity in the mount
determined by reference to the C.W.Umded Amounts.
The principal of and the interest and redemption premium, if
any, on the Series 1990 Bonds shall be Payable in y coin or
currency of the United States of America which on the respective
dates of payment thereof is legal tender to, the payment of public
and private debts. The interest an the Series 1990 Current Inter-
est Bends shall be payable by the Paying Agent on each interest
payment date to the person appearing, as of the fifteenth day
immediately preceding such interest payment date (the "Record
Date-), an the registration books oI the Issuer hereinafter pro-
vided for as the Halder thereof, by check or draft mailed to such
Holder at his address as it appears on such registration books as
the Record Date. Payment of the principal of all Series 1990 cur -
rest Interest Bend. and the Compounded Mount its respect to the
Series 1990 Capital Appreciation Heads shall be -made upon the
such Bonds ns and
... hall becomen a anal y ble.ying Agent of
uc a spays
SECTION, S. EXECUTION OF SERIES 1990 BUNCH. The Series 1990
Bends shall be signed by, or bear the facsimile signature of, the
Mayor and shall.be signed by, or bear the facsimile signature of,
the Clerk and a facsimile of the Official seal of the Issuer shall
be imprinted on the Bonds.
In Case any officer whose signature or a facsimile of whose
signature shall appear on any Series 1990 Bond shall ..... to am
such Officer before the delivery of such Series 1990 Bond, such
signature or such facsimile shall nevertheless be valid and suffi-
scant of such !Series logo Bond or Series 1990 Bonds so
urrendered.
In all casesin which Series 1990 Bonds shall be exchanged,
The Issuer shall execute and the Registrar shall authenticate and
deliver, at the earliest practicable time, a new Series 1990 Bond
r Series 1990 Bonds of the s maturity and of the ... type
(i.e. Current Interest Bonds will be exchanged far Current Interest
Bonds and Capital Appreciation Bends will be exchanged far Capital
Appreciation Bends) in accordance with the provisions of this
Resolution. All Bonds surrendered in any such exchange shall
forthwith be canceled by the Registrar. The Issuer or the Regis-
trat may make a charge for every such exchange of Series 1990 Bonds
Sufficient to reimburse it for any tax or ether governmental Charge
required to M paid with respect to such exchange, but no other
charge shall be made to any Bondholder for the privilege of
exchanging Series 1990 Bonds under the previsions of this Resolu-
tion. Neither the Issuer nor the Registrar shall be required to
make any such exchange of Series 1990 Bonds after the Record Date.
SECPION 12. ONNERSHIP OF SERIES 1990 BONDS. The person in
whose name any Seuries 1990 Bend shall be registered shall be deemed
and regarded as One absolute owner thereof for all purposes, and
payment at or so account of the principal or redemption prime Of
any such Series 1990 Bond, and the interest an any such Series 19go
Bend (or, in the case of the Capital Appreciation Bends, Compounded
Mounts with respect thereto), shall be made only to or upon the
order of the registered owner thereof Or his legal representative.
All such payments shall be valid and effectual to satisfy and
discharge tee liability ,an such Series 1990 Bond including the
premium, if any, and interest thereon to the extent of the sum Or
sums O paid.
SECTION 11. SERIES 1990 BONDS MUTILATED, DESTROYED, STOLEN
OR LOST. In .... any Series 1990 Bond shall Penn.. mutilated, at
be destroyed, stolen or lost, the Issuer may in its discretion
e to be ....red, and the Registrar shall authenticate and
deliver, anew
e v Series 1990 Bond of like maturity, date and tenor
s the Bend smutilated, destroyed, stolen or lost (i.e., current
Interest Bonds shall be issued in exchange for Current Interest
Bonds and Capital Appreciation Bonds shall be issued in exchange
for capital Appreciation Bonds) in exchange and substitution ter
such mutilated Series 1990 Bond upon Surrender and cancellation Of
such mutilated Series 1990 Bond or in lieu of and substitution for
the Bond destroyed, stolen Or lost, and upon the Halder furnishing
the Issuer and the Registrar proof of his Ownership thereof and
satisfactory, indemnity and complying with such other x .able
regulations and conditions as the I...0 and the Registrar may
prescribe and paying such am,..... as the Issuer and the Registrar
may incus. All Series 1990 Bonds so surrendered shall be cancelled
by th. Registrar. If any of the Series 1990 Bond. shall have
matured or be about to mature, instead of issuing a substitute
16
Series 1990 Bond/ the Paying Agent may pay the same, upon the
Issuer and Registrar being indemnified as aforesaid, and if such
Series 1990 Bond be lost, stolen . destroyed, without surrender
thereof.
Any such duplicate Series 1990 Bonds issued pursuant to this
Section shall c stitut. original, additional contractual Obliga-
tions on the part of the Issuer vbether or not the lost, stolen or
destroyed Series 1990 Bends be at any time found by anyone, and
such duplicate Series 1990 Bends shall be entitled to equal and
proportionate benefits and rights as to lien en and source and
security Ior payment from the Pledged Revenues, to the same extent
as all ether Series 1990 Bonds issued hereunder.
SECTION 16. PROVISIONS FOR REDEMPTION. The Series 1990 Bonds
shall be subject to redemption prior to their maturity at such
times and in such manner as shall he fixed by resolution of the
Issuer prior to or at the time of sale of the Series 1990 Bands.
Notice of such redemption shall, at least thirty (30) days
prior to the redemption date, be filed with the Registrar, and
fled, first class mail, Postage prepaid, to all Holders of Bonds
to be redeemed at their addresses as they appear on the registra-
tion books hereinbefore provided -for, but failure to mail such
notice to one or more Holders of Bends shall not affect the
validity of theproceedings for such redemption with respect to
Holders of Bonds to which notice was duly mailed hereunder. Each
such notice shall set forth the date fixed for redemption, the
redemption price to be paid and, if less titan all of the Series
1990 Bends of on. maturity a e to be Called, the distinctive
umbers of such Series 1990 Bends to be redeemed and in the case
of series 1990 Bonds to be redeemed in part only, the portion of
the principal amount thereof to be redeemed.
In addition to the mailing of the notice described above, ..oh
notice of redemption shall (i) be sent at least 35 days before the
redemption date and to the extent possible, at least two (2) days
prior to the general date of mailing by registered or certified
ail or overnight delivery service or telecopy to all registered
rarities depositories then in the -business of holding substantial
ancounts of obligations' -of types comprising the Series 1990 Bands
reuefi aeeesiteeies now Dain The oeoositary Trust Cemean, New
Illinois, and Philadelphia Depository Trust Company, Philadelphia,
Pennsylvania), and to two o national Lnfnrmatlon services
that disseminate notices of redemption of ebligatiens such as the
Series 1990 Bonds and (i1) be published ... time in The Bend Ruler,'
New York, New York o if ...h publication is impractical or
unlikely to rea.h a substantial number of the holders of the series
1990 Bonds to be redaemad, in some other financial n wspaper or
Journal which regularly carries
es noticof tedemptien of other
ebligatiens similar to the Series 199. Bends, such p.bli.ami.. to
Ho. R -
1]
(FORM OF CONSENT INTEREST BOND]
UNITED STATES OF AMERICA
STATE OF FICHIDA
COUNTY OF ORANGE
CITY OF OWES
TRANSPORTATION REFUNDING AND
IMPROVEMENT REVENUE BONDS, SERIES 1990
MATURITY DATE: INTEREST RATE: DATED DATE: CUSIP
Registered Owner:
principal Amount:
SNOW ALD MEN BY THESE PRESENTS that the City me Ocoee, Florida
(hereinafter called "City"), for Yalue received, hereby promises
t0 pay to the order of the Registered Owner identified above, or
registered assigns, as herein provided, on the Maturity Date set
forth above, .,on the presentation and surrender hereof at the
principal corporate trust office of
salol from the Florida (the .Paying Agent"),
y special Lands hmy ..is
mentioned, the Princi-
pal Amount set forth hove in any coin or currency of the Vlegal
States of America which en the data of payment thereon is legal
tender for the payment of public and private debts, and to pay,
solely from Re es, to the Registered Owner hereof by check
mailed to theeRegistered
ed owner t his ddress as it appears as f
on th
the Record Date on the Bond registration beaks of the City main-
tained by
(the trai, at ice Interest Aate
per annum set forabove, interestrest n sagid Principal Amount o
i a 1 and 1 -commencing , 19_ trOm the
i terest payment datenext preceding the data of registration and
authentication of this Bond, unless this Bond is registered and
authenticated as on an interest payment data, in which case it
shall bear interest from said interest payment data, or unless this
Bond is registered and authenticated prior to19_
in which vent such Bond shall bear interest Isom
19 7 provided, however, that i1 at the time of au n
interest .ti .tiois in default, this Bond shall bear interest If. the data
to which interest snail have been paid.
The Bands of this issue shall be subject to tedemptien Prior
to their maturity at the Option of the City.
19
be made at least ASU days Prior to the date fixed for redemption)
provided, however, that failure of such notice or payment to comply
with the terms Of this paragraph shall at in any ... defeat the
effectiveness of a call for redemption if notice thereof is given
otherwise prescribed above in this section. Upon the payment
of the redemption price of Series 1990 Bonds being redeemed, Oath
check or other transfer of fondse ed for such purpose shall bear
Ne CUSIP number identifying, byissue and maturity, the Series
1990 Bonds being redeemed with the proceeds of such check orother
transfer. A second .Otic. of redemption shall be mailed in the
per provided above to any Bandhelder wh0 has net tendered Series
1990 Bonds that have been called for redemption within sixty (e0)
days after the applicable redemption data.
Upon surrender of any Series 1990 Bond for redemption in part
only, the Registrar shall authenticate and deliver to the Bond-
holder thereof, the cost of which shall be paid by the Issuer, a
w Series 1990 Bond of the ..a maturity and type and of a sort,
zed denomination equal to the unredeemed portion of the Series
1990 Bond surrendered.
SECTION 15. FORM OF SERIES 1990 BONDS. The text of the
Series 1990 Bonds shall be in substantially the following form,
with such emissions, i serti0ns and variations a may bet n ..cy
end desirable and authorized and permitted by Nis Resolution n
by any subsequent resolution adopted by the Issuer prior to the
issuance thereof:
la
(Insert Optional or Mandatory Redemption Provisions)
Notice of much redemption shell be given in the sooner
required by the Resolution described below.
This Bond is one of an authorized is. of Bonds in the aggre-
gate prim.ipal amount of S of like data, tenor and
effect, a ..pt me to number, principal amount, ....my, redemption
provisions and interest rate, issued to refund certain outstanding
bonds and to finance the at of a<guisition of sights -of -way,
I without the city limits of
the Constitution and Statute:
duly adopted by the City O . as amended
and supplemented (hereinafter collectively called "Resolution"),
and is subject to all the terms and conditions of such Resolution.
This Bond and any Additional Parity Obligations issued under
the Resolution .. payable solely from and ..cured by prior lien
upon and pledge of the Pledged Revenues, as defined in the Reso-
lution, in the manner provided in the Resolution. The Resolution
also permits the issuance of public Service Tax obligations which
shall have a lien on that portion Of the Pledged Revenues consti-
tuting Ne public Service Taxes, an a parity with the Bends.
[The Series o1 Bonds of which this Bond is a part includes
5 aggregate principal amount of Bonds as to which
in[aresC payable semi -...ally. such Bonds are referred to
herein and in the Resolution as "Current Interest Bends." The
Series of Bonds of which this Bond is a part also includes
$ aggregate principal amount of Bends s to which
intersst-J�—pmymble Only at maturity or upon redemption prier to
maturity. Such Bonds are referred to herein,a^d, in,tbe Resolution
as "Capital Appreciation Bends.1-1
This Bond does not Constitute . general' indebtedness er
general obligation of the City within the of any eenstitu-
ti0nal, statutory or charter provision or lib{tkClo'd', and the City
has not pledged its full faith and credit Ior the payment Of the
principal of, redemption premium, if any, and interest on this Bond
or the aking of any reserve or other payments provided for in the
Resolution. It is expressly agreed by the Holder of this Bond that
such Bondholder shall never heve the right to requirt or`cempel the
exercise of the ad valorem taxing power of the City or taxation of
any real or personal property therein for the Payment of the prin-
cipal Of, redemption premium, if any, and interest On this Bond or
the making or any reserve or other payments provided for in the
Resolution.
20
It is furthei agreed between the City and the Holder of this
Bond that this .Bond and the indebtedness evidenced hereby shall
not Constitute a lin upon any property of or in the City, other
than the Pledged Rev..—, but shall Constitute a lien only on the
Pledged Revenues all in the Hamner provided in the Resolution.
The City in the Resolution baa cow anted with and for the
benefit of the hold. of the Bonds of this issue that it
tWill
om
not repeal or adversely amend its Charter, ordinances,
or interlocal agreements relating to the Pledged Revenues seas to
t
impair the power and obligations Of o City to collect said
Pledged Revenues, and (ii) tat the pledge and ..vemnts in the
Resolution constitute a contract betwee. the City and th. holders
of the Bonds of this issue not subject to repeal, i.pairment or
modification by the City, except .expressly authorized by the
Resolution. The City has made certain other movements for the
benefitto the heldis made C'o the Rezoluiis issue 6for the terms
o union Notwithstanding the foregoing, the lien on and pledge of tat
portion of the Pledged Revenues c misting of the public service
Taxes in favor of the holders of the Bonds may be released and
.xt,i.hthe ...trance of certain events more fully
describedin the Resolution.
It is hereby certified and recited tat all acts, canditiam
and things required to exist, to happen and to be performed prece-
dent to and in the is..... Of this Bond exist, have happened and
have been performed in regular and due form and time as required
by the lays and Constitution of the state Of Florida applicable
t
thereto, and that o issuance of the Bonds of this issue
does not
violate any .omtitutional, statutory, or charter Limitation or
prevision.
This Bond is and has all thequalities and incidents of E
eOinstf ent under Florida, Chapter 678,, Fof lorida Statutesuniform �erdal
Code, theState
The =..far of this Bond is registrableby the Bondholder
hereof in person or by his mtt.rnay'or legal representative at the
Principal corp.rate trust Office of the Registrar (or of the City
Clerk is the Registrar, at CO. office of the City clerk) but only
J. Resolution and up n sh. manner and uraenderbjecttand hcancellationsOfp this Bond -roved the
This SOod shall not be valid or becomeblivatory for any
purpose or he entitled to any benefit . security Osie tithe Be..-
lotion ntil it shall have bean authenticated by She ex cutim. by
the Registrar of the certificate of authentication endorsed hereon.
21
//_ ASSIGNMENT AND TRANSFER
For value received the Undersigned hereby sells, assigns and
transfers to
(Please insert Social Security or other identifying number of
transferee) the attached Bond of the city
of Ocoee, Florida, and does hereby constitute and appoint _
attorney, to transfer the said Bond On the books
kept for registration thereof, with full pouer of substitution in
the premises.
Signature Guaranteed by [masher farm .f the New York
Stock Exchange at .Orci.1
bank or a trust ..... .]
By: rappel sicnacur.)
Title
NOTICE: No transfar will be
registered and n. new Bonds will
be issued in the name of the
Transferee, .less the signature
to this assignment corresponds
with the name as it appears upon
the face of the Nithin Bond i
very particular, without alter-
aticn Or enlargement or any
Change whatever and the Social -
Security or Federal Employer
-Identification Number of the
Transferee is supplied.
[Bond Counsel Opinion]
[EYO OF CURRENT INTEREST BOND FORM]
23
IN WITNESS WBER£OF, the City of Ocoee, Florida, has issued
this Band and has caused the same to be signed by the Mayorand
attested to by the City Clerk (the signatures of to Mayor and the
City Clerk being authorised to be facsimile of soon Officers,
Signatures) and its seal or a facsimile thereat to be affixed,
impressed, imprinted, lithographed or reproduced here.., all as of
the _ day oI ..
CITY OF OCO£E, FLORIDA
(SEAL)
(manual at fa i
ATTESTED: Mayor
cel Or fe cs'm let
City Clerk
CERTIFICATE OF AUTHENTICATION
This Bond is oneof the Bends issued under the provisions of
the Nithin mm.ti.nodResolution.
Date Of Authentication:
22
Registrar, as Authenticating
Agent
BYAULnoriEedaOtfieer
[FORM OF CAPITAL APPRECIATION BONDS]
No. CARR- maturity
Amount:
Bond Data: $
Principal Value
at Issuance:
5
,at $5,000
maturity Amewt
UNITED STATES OF AMERICA
STATE OF FLORIDA
COUNTY OF ORANGE
CITY OF OCOEE -
TRANSPORTATION REFUNDING AND
IMPROVEMENT REVENUE BONDS, SERIES 1990
ANNUAL YIELD
TO MATURITY DATE OF
MATURITY DATE: (APPRO%INATE): ORIGINAL ISSUE: CUSIP:
Registered Owner:
Maturity Amount:
MOW AIX HER BY THESE PRESENTS that the City .1 Comma, Florida
(hereinafter called "city"), for value received, hereby promises
to pay to the order of the Registered curer identified above, o
registered assigns, as herein provided, solely from the special
funds hereinafter mentioned, on the Maturity Date set forth above,
the Maturity Amount set forth above .r the Compounded Amounts (as
reflected 6. the Schedule of Compounded Amounts set fort herein)
if redeemed prior thereto as hereinafter provided, in any coin or
currency of the United States of America which on such data is
legal tender for the payment of public and private debts, upon the
Presentation and surrender hereat at the principal corporate trust
office -Of
Florida (the "Paying Agent").
The Bonds of this issue shall be subject to redemption prior
to their maturity at the option of the City.
(Insert Optional or Mandatery Redemption Provisions)
Notice of such redemption shall be given in the manner
required by the Resolution described below.
24
This Bona ie one of a authorized issue of Bends in the aggtn-
gate principal Amount, torm b.n, of like data, tenor and
Affect, except as to number, principal maturity, redemption
provisions and interest sate, issued too refund
e funisitio certain outstanding
bonds and to finance the nest d acquisition of rights -o. An
design, nstrvehin, paving And improving certain sheets and
intersections within and without the oof the City and
n Lull compliance with the Constitutionn and and Stat Statutes of the Slat.
of Florida, Chap including t 11, Floridathe Charter of the City of
dace, Chapter 166, Path II, ForidStatutes, and asResolutionamended No.
duly adopted by the City w mended and
supplemented (hereinafter collectively called"Resolotions) , and
is subject to all the terms and mMieiena of such Resolution.
This Bend and any Additional Parity obligations issuedUnder
the Resolution are payable solely from and secured by a prior lien
upon and pledge of the Pledged Revenues, As defined in the Reso-
lution, in the manner provided in the Resolution. The Resolution
also permits the issuance of Public Service TAX obligations which
shall have a lien on that portion of the Pledged Revenues consti-
tuting the Public Service Taxes, on a parity with the Bonds.
The Series of Bonds of which this Bond is A part includes
$ aggregate principal amount of Bonds as to which
interest payable semi-annually. Such Bonds are referred to
herein and in the Resolution as "Current Interest Bonds.' The
Series of Bonds of which this Bond is a part also includes
$aggregate principal amount of Bends as to which
interest rs payable only at maturity.o upon redemption prior to
maturity. Such Bonds are referred to herein and in the Resolution
as "Capital Appreciation Bond.---
This
onds."This Bond does not constitute a general indebtedness or
general obligation of the City within the .... ing of any c nstity-
tional, statutory at charter prevision at livitation, and the City
has net pledged its full faith and credit for the payment of the
principal of, redemption premium, it any, and interest on this Bond
or Ne making of any reserve or other payments provided for in the
Resolution. 'It is expressly agreed by the Holder of this Bond Nat
such Bondholder shall never have the right to require or compel the
e of the ad valorem taxing Paver of the City or taxation of
Any real or personal prcperty therein for Ne payment of the
principal of, redemption Premium, if any, and interest an this Bond
Or the making of any reserve or other payments provided Loi in the
Resolution.
It is further agreed between the City and the Holder of this
Bond that this Bond and the indebtedness evidenced hereby shall
net a nstitute A lien upon any property of or in the City that
than the Pledged Revenues, but shall constitute a lien Only on the
Pledged Revenues all in the manner provided in the Resolution.
IN WITNESS WHEREOF, the City of Ocoee, Plorida, has issued
this Bond and has caused the same to be signed by the Mayor and
attested to by the City Clerk (the signatures. of the Mayor ad the
i
City Clerk being authorised to be facsimile of such ofi.crs'
signatures) and its seal -I A facsimile theteof to be affixed,
theres.Ad, imlthted, lithographed or reproduced hereon, all as of
y of
sFAG) CITY OF OCOEE, FLORIDA
manual or tansimil 1
ATTESTED: Mayor
rmanual or tarXimilel
City Clerk
CERTIFICATE OF AOTUnFrIGTION
This Bond is eneof the Bends -issued Under the provisions of
the within mentioned R ... lotion.
Registrat, as Authenticating
Date at Authentication: ' Agent
Sy rmanuaF si n
Authorised Officer
27
The City in the Resolution has covenanted with and for the
benefit of the holders of the BOnds of this is. (i) Nat it will
not repeal er adversely amend its charter, otdi...es, resolutions
or intailocal agreements relating to the Pledged Revenues so
:s to
impair tha power and bligati.s of the City to collectsaid
Pledged Revenues, and (ii) that the pledge And covenants in the
Resolution wn.tttute A contract between the City and the holders
of the Bends of this issue not subject to repeal, impairment o
modification by the City, except as expressly authorized by the
Resolution. The City has made Certain ether, c a ants for the
benefit of the holders of the Sonds of this imsue,tar the terms
of which reference is made to the Rezelution.
Notwithstanding the foregoing, the lienon and pledge of that
portion of -the Pledged Revenues cAawisrin, of the Public Service
Taxes in favor of the holders of the Bonds may be released and
extinguished upon the tarsen.. of certain events mote fully
described in the Resolution.
it is hereby certified and recited that all acts, conditions
and things required to exist, to happen and to be Performed prece-
dent to and in the issuance of this Bond exist, have happened and
have Gen performed in regular and due form and time as required
by the laws and Constitution of the State of Florida applicable
thereto, and that the issuance of the Bonds of this issue does not
folate any constitutional, statutory, or charter limitation or
yrovision.
This Bond is and has all the qualities and incidents of A
negotiable instrument Under Article B of the Units= Commercial
Code, the Bete of Florida, Chapter 678, Florida Statutes.
The. transfer of this Bond is registrable by the Bondholder
hereof in-person or by his attorney or legal representative at the
principal corporate trust office of the Registrar (or if the City
Clark is theAegriser, t the office of the City Clerk) but only
in the manner and subject to the .conditions provided in the
Resolution and upon surrender and cancellation of this Bond.
This Bend :ball not be valid or be.... obliq texy for any
purpose or be entitled to any benefit or security under the Reso-
lution Until it shall have been authenticated by the execution by
the Registrar of the Certificate of authentication endorsed hereon.
26
/ ASSIGNMENT AND TRANSFER
For value received the undersigned hereby sells, assigns end
transfers unto
(Please insert Social Security
or ether identifying number of
transferee)
the attached Bond oI the city
of Owe., Florida, and does hereby Constitute and appoint
attorney, to transfer the said Bond on the books
Gpt tar registration thereof, with full power of substitution in
the Premises.
Date
NOTICE: No transfer vill be
Signature Guaranteed by
registered and no new Bonds will
be i sued in the name of the
[member firm of the New York
Transfer.., .less th. signature
re
Stock Exchange oial
to this assignment corresponds
beak or a trust comPony.]
with the name as it appears upon
the face of the within Bond in
By: rmanual s mature)
every particular, without alter-
ation er enlargement or any
Title:
change whatever and the Social
Security er Federal Employer
ddentification Number of the
Transferee is supplied.
[Bond Counsel Opinion]
[Attach Schedule at Compounded Amounts]
[£NDOF CAPITAL APPRECIATION BOND FORM]
SECTION 16. /APPLICATION OF SERIES1990 BOND PROCEEDS. The
proceeds, including accrued interest and premium, if any, received
from the sale of the Series 1990 Bonds shall be applied by the
t0sthe Purchas r theuer reof es toll ..:with of the Brier 1990 Bonds
A.
e ...ad interest, ad
interest to source O the Series 1990 ago dse In such --..tt andnfar
a Period Of time as shall be approved by subsequent resolution of
Ne Issuer, on the Series 1990 Bonds shall be deposited in the
Interest Account in the Debt Service Fund and shall be used only
for the purpose of paying interest becoming due on the Series 1990
Bonds.
B. Unless provided from other funds of the Issuer on the date
of issuemme et the Series 1990 Bones, er unless provided far
lw.ougR the Dutchaso eC a guaranty or an insurance polio, an
lrravocable letter f credit, a surety hone, t similar credit
facility, or any Combination thereof, the Issur shall deposit to
Me special subacaount in the R ... I- Account established for the
benefit of the Series 1990 Honda, A sum sufficient to equal the
Reserve Requirement on the Series 1990 Bonds.
C. To the
not reimbursed therefor
8 original
Purchaser, of any s rie2 of the Series 9 l90 Bonds, !yse Issuerishall
payall =arm and 1 90 Bmadss incurred in =mention with the issuance
If Me D. A sum as
spmcified by a supplemental resolution of the
Issuer cif a ll, together with ether legally available funds of the
Issuernas determined
Essutr, be weed,to data . the by subsequentunded Bonds by
of the
sums Of money for investment in Y positing such
Pursuant to the Escrow Deposit Aappropriate Acquired obligations
imeL funds to make all w- -Agreement s_ as to produce suffi-
Ue IsaV eL smell a xee ,t l0 If such
beiaJd VVvvprrace mecumentatiOn to demonstiat. that the muse
being posited and the investment to be de will be sufficient
ter such purposes. simultaneously with the issuance of the Series
1990 Bends, the Sssuer shall metal late an Agreement substantially
in the fere attached hereto as Exhibit A with the Escrow Agent.
Such mmreved funds shall be kept separate and part from all ether
funds of the Issuer and the moneys n deposit under the Agreement
shall be withdrawn, used and applied by the Issuer solely for the
prposes see forth in the Agreement.
E. Me balance of the Series 1990 Bond proceeds after provid-
ing for the payments required by A, B, C and D above, shall be
deposited to the -city Of once- Transportation Refunding and
Improvement Revenue Bend Construction Fund" which fund is hereby
reated and established and whiU may be used for the purposes at
29
The Holders .6f the Bonds shall have a prior lien upon the
Pledged Revenue¢ superior to any claims of any kind in tort,
contract or otherwise, irrespective whether the patties possessing
uch Claims have notice hreol, in accordance with the provisions
hereof. The revenues and furls so pledged and hereafter ref¢ved
by the Issuer shall immediately be subject to the limn of such
pledge without any physical delivery or further act.
SECTION ld. COVENANTS OF THE ISSUER. For so long as any of
the principal Of and interest on any of the Bonds shall De Out-
standing and unpaid or until the Issuer Ras made prevision far
Payment Of principal, interest and redemption premiums, if any,
ith resp-Ct to the Bonds, as provided Ior in this Section is or
as Provided ter in Section 2a of this Resolution, the I .... C
w
coveNnts with the holders of any and all Series 1990 Bends ns
Callous:
A. REVENUE FUND. All Local Option Gas Taxes shall upon
receipt thereat be deposited in the ,City of Ocoee Transportation
Refunding and Improvement Revenue Bond Revenue Food' (hereinafter
called the 'Revenue Fund"), hereby reated and established. All
deposits into such Revenue Fund shall be dammed! to be held in trust
fee the purposes herein provided and used only for the purposes and
in the manner herein provided. -
Me money remaining in the Revenue Fuad, after making
provision for no Payments into the Debt Service Fund, and the
various accounts therein, hereinafter reated and established, a
long as all amounts required to be on deposit in the Debt Service
Fuad small be on deposit therein s of such data, shall be free
from the lien and pledge thereon in favor of the Holders of the
Bonds, and may be used by the Issuer fee any lavtul purpose.
B. DISPOSITION OF REVENUES. All amounts at any time remain-
ing on deposit in the Revenue Fund shall be disposed of an o
before the fifteenth (15th) day of each month commenting in the
oath immediately following the delivery of the Series 1990 Hands
Only in the f011oving manner and in the following order of
priority:
ahall(fitst deposit From the moneys in the Revenue Fund, th. Issuer
Ocoee Transporation) R.raodin nand Improvement designated •City of
Revenue Bond
Debt Service Food' (hereinafter caled tDebt Service
Fund'), and resit to the following accounts within the Debt
Service Fund, each On s PeritY with each other (except a
Otherwise provided in ubseotden (d) below), the following
identified sums:
fees a[ tea) Into the Interest Account hereby created: Any
tagether with tush sainthe
aaCoill beRegistrar
together with
31
forth herein. Sucti Construction Fund shall constitute a trust fund
and shall be used together with ether legally available moneys by
The Issuer solely (i) to pay the cost of the Series 1990 Project,
including the reimbursement to the Issuer of moneys spent on the
Series 1990 Project in anticiHaticn Of the ..is of and Che issuance
of the Series 1990 Bends and (ii) to make required deposits to the
Debt Service Fund in the event sufficient funds are not on deposit
Issuer on the required dates. The Issuagrees And covenants to
commence and proceed with reasonable diligence and in good faith
to complete the c ostruction o1 the Series 1990 Prejmct. Upon Lee
completion of the series 1990 Project, rcess moneys GO deposit in
the Comtruri0n Fund may be Need by the Issur for any lawful
purpose and shall be free from the pledge thereof and the lien
throne in favor of the Holden Of CO. Bonds; provided that in the
event the Issuer purposes to use amounts on deposit in the
Construction Fund for other than a transportation project, as
defined in Section 336.025(7), Florida Statutes, the Issuer shall
have first receives no opinion of Bond Counsel to the effect that
uch use will not in and by itself, ...I the interest on the
Series 1990 Bends to be included in the grecs ince.. of the Holders
aI such Series 1990 Bonds far putposes of Federal incomeLaxatien.
SECTION 17. SPECIAL OBLIGATIONS OF ISSUER. The Bonds shall
not be or constitute general obligations or indebtedness of the
Issuer as 'bonds^ within the meaning of the Constitution of
Florida, but shall No payable solely from and secured by a first
lien pooand a pled,. of the Pledged Revenues as herein provided.
No Helder or
Holders of any Bends issued hereunder shall ever have
the right to compel the .xrcise of the ad valorem taxing power of
the Issuer or taxation in any farm of any real or personal property
therein, or to Compel the Issur to pay such principal of, interest
and redemption premium, 1f any, from any other funds of the Issuer
except the Pledged Revenues.
The payment e1 the principal of, redemption premium, if any,
and interest on the Bonds shall be s cured forthwith equally and
.ably by, and the Issuer hereby grants to the BOnahold.rs
irrevocable first lien on the Pledged Revenues, as defined herein,
prior and superior to all Other liras -or encumbrances on such
Pledged Revenues (except to the extent the Issuer has issued Public
Service Tax Obligations which shall have a parity lien an the
public Service Taxes) and the Issuer does irrevocably pledge such
Pledged Revenues to ehe payment of the principal OL and intereat
and redemption premium, if any, On the Bonds, for the reserves
therefor and for all ether required payments under this Resolution.
Notwithstanding the foregoing, emoet. an deposit in each nespec-
rive subacceunt in the Rome,. Account shall only be applied ter
the payment of principal of, redemption premium,
if any, or inter-
est on the Outstanding series of Bonds for which such subaccount
was established and for no other series of Bonds.
i 10
me tunas the. on deposit therein, to Pay one-sire1 6xtof
all dntere.t becoming due On the Bonds on the next semi eol
interest payment data. The moneys in the Interest Account
shall be vithdraun and deposited with the Paying Agent for the
Bonds on or before each interest payment date in an amount
sufficient to pay the interest due on such date and the fees
and charges of the Paying Agent and Registrar Iden due. SUCK
e.thly payments- shall be increased or decreased
Proportionately prior to the first interest Payment data or
dates, after making allowance for any deposits made into the
Interest Account upon the issuance of each such sries oC
Bonds and for any amount transferred Iree ether accounts
Pursuant to the provisions of Uis Rexnln!<nn
Into thehereb
no
Baginhing (b)the 15th dayP fnth. unt acorn thich is twelvet(12)
months prior to first principal maturity date and monthly
thereafter, such sum as will be sufficient, together vith the
funds than on deposit therein, t0 pay one -twelfth (1/12) of
0
the principal (except the principal f which is required to
be paid from the Redemption Account hereinafter created and
established) and the C..pounded Amounts On the Bends maturing
or scheduled to be called Lor redemption on the next principal
maturity date. The moneys oN-dop.sit in the Principal Account
shall be withdrawn and deposited with the Paying Agent for
such Bonds an or before each principal maturity date in a
amount sufficient to pay the principal maturing no such date•
(c) Into the Redemption Account hereby created:
n amount sufficient to pay one -twelfth (1112th) of any
Amortisation Installment established by any subsequent
resolution of the Issuer. Provided, however, [hat monthly
deposits shall not be required to be made to the extent that
money On deposit in the Redemption Account is sufficient for
pur,..._ Any monthly Payment to be deposited as set
Ea .
rth oP
bove, far the purpose I meeting Amortization Install-
ents shall be adjusted, as appropriate, to reflect the
frequency of dates establish.d for Amortization Installments
applicable to such Bonds. The moneys in the Redemption
Account shall be used solely for the purchase or redemption
Of the Term Brds payable threlrOm. The Issuer may at any
time purchase any of aid Term Bands at prices not greater
than the then redemption price of said Term Bonds. If the
Term Bonds are not then redeemable prior to maturity, the
Issuer may Purchase said Term Bonds at prices not greater than
the red ... tion price of such Term Bonds on the next ensuing
redemption date. If the Issuer shall purchase of all for
redemptionin any year Term Bonds, Such Tare Bends N.
purchased or redeemed shall be credited i Such mmmer and at
such times as the Issuer shall determine
32
increased in�subh amounts as shall be necessary to make the
payment for'the principal of, redemption premium, if any, and
Interest on for such Additional Parity Obligations on the Same
basis as hereinabove provided with respect t0 she Bonds issued
Under this Resolution.
(0) The Issuer Shall at be required to make any further
depesits into the Debt. service Fund in any month to the extent
the monthly deposits into the Debt Service Fund, including the
Reserve Account therein, required by this Section 15(B) have
been made by the Issuer and no deficiency exists in any
account in the Debt Service Fund.
(e). The balanc. of any moneys remaining in Ne Revenue
Fund after the above required payments have been made shall
he free from the lien and pledgee thereon in favor Of the
Holders of the Bonds and may be sued far any lawful purpose;
Provided, however, Hat nth . of said m y hall he released
from said lien and pledge nam shall said money be wed for
any purposes other than those hereinabove specified unless all
payments required to have been made by: some time Under this
Resolution, including any deficiencies for prior payments,
have been made in Lull and unless nth Reent of Default -ball -
have occurred and be continuing.
He further deposit shall be required to any of the
accounts in the Debt Service Fund when sufficient moneys are
on deposit in the accounts within the Debt Service Fund To pay
the principal, interest, and redemption premium, it any, on
all Bonds at maturity.
(5) The Debt Service Fund (including the accounts and
the subacoments therein), the Revenue Fend, the Public Service
Taxes Fund and any that special funds herein established and
Bated shell be deemed to be held in trust fee the purPeses
provided herein for such funds. The moneyyin all such faces
shall be ccntim.omalay s cured in she same net as meet. and
municipal deposits re ahthosiim to be secured by the laws
oI the State of Florida.
Honeys ern deposit in the Construction Fund, the Revenue
Pend, the Public Service Taxes Fund and invested and reinvestethe Debt Service d
excluding the Reserve Account, may
in Investment Securities which mature not later than the dates
which the moneys on deposit therein will be nodded for the
purpose of much fund. Moneys in each aubacem nt in she
Reserve Account, if any, may be invested and reinvested in
Investment Securities maturing not later than the latest
limbed. All i.... of BOY Bond L investments, r which such sexceppt for Income
eeab-
shall beinvestme�depts osited in the respective tunOne Ruse, Account and dsCond accmwts from
35
which such Investments were made and be used Sor,Ne.purposes-
thereof unless and until the amount required t0 be on deposit _
is n deposit therein„ and thereafter shall be deposited in
the Revenue Fund. Investment income on same, subaccount in the
Reserve Account shall be deposited and credited as determined
by subsequmt zesolptVan L the Izsum adopted pior to the
series of Bonds for hien such Schaccowt is established.
Investment income earned on the COnstructien Fund shall remain
On deposit, io the construction Fwd and shall be used. solely
for the purposes set forth in Sections a and 16E_ Of ,this
Resolution. - -
(6) In determining. the amount of any of the payments -
required to be made pursuant to His .Section -18(B),: credit
shall be given for all investment income .morning to .the
respective funds and accounts described herein.
p) Themoneys and Investment Securities required. to be
....anted for in each Of the funds., accounts and Detachments _.
account, t c
described
e be d nsimple
t, provided t adequate accoutings records are main-
tained to reflect and control the restricted allocation of the -
ash an deposit therein for thevarices purposes of such tuMs
and accounts as herein provided. The designation and matab-
lishment of the various funds in and by this Resolution shall
not be construed to require the, establishment of any cam-
n1at.1, ind.Dend.nt. selfbml... I. funds as such term is
rather is intended solely to constitute an earseasing or.
certain revenues and assets of the Issuer for certain purposes..
and to establish certain priorities for application of such
revenues and ...sts as herein provided.
(B) Notwithstanding anything to the contrary set forth
herein, nothing in this Resolution hall be construed as
preventing the Issuer free voluntarily depositing to the
Credit of any account I. the Debt Service lend moneys received
from any legallyavailable source other Nm the Pledged
Revenues, but the Issues shall have as obligation, directly
or indirectly, to make deposits to the Debt Service Fwd from
any funds of Ne Issues other Nm the Pledged Revenues.
C. ISSUANCE OF OTHER OBLIGATIONS. The I#uer shall issue no
bonds or obligations of any kind or nature payable from or enjoying
a lien on the Pledged Revenues if such Obligations have priority
over He Series 2990 Bonds with respect to payment or lien, nor
shall the Issuer create or cause or permit to be created anydebt,
lien, pledge, assignment, encumbrance or Other charge having
priority to or being an a parity wish the lien of the Series 1990
Bonds upon said Pledged Revenues; provided, -however, the I .... r may
issue Additional Parity Obligations ander the conditions and in the
manner provided in Section ISO hereof and may issue Public Service
36
Reserve Account shall be valued as determined by the sesolu-
Deposits i,the Interest Account, the principal Account and
tion-suth.A.ing such --rias of Bonds: ter which. much ..bac-
the Redemption Account shall be increased or decreased on a pro
count vas. established. Investments, if any, an deposit im the
rata basis to reflect shenumber of months existing between the
subaccount in the Reserve Account "established tar the Series.'
issuance of each series Of Bonds and the applicable principal,
1990 Bonds shall be valued at host. .. To the. event of she
interest and redemption payment dates in order to ensure adequate
refunding of any aeries of Bonds, the Issues may withdraw from
funds am. available in such funds an such -dates far the purposes
the s.baccount within the Reserve Moowt for such series of
described heroin. - - --- -
- Bonds, all or'ahy porYien of she amounts accumulated Herein.
with respect a she Bends tieing refunded and deposit such
(d) TRa Issues will initially previa- for she
Of. as required by the re; -d methdrwd-.
Reserve Requirement for the series 1990 Bonds by the purchase
Pralon
that.zing_the
mg L. such series o1 Bends/ provided t1eme-.t withdrawal
of a surety bondfromMIA pursuant to the terms of a Finan-
Bases
shall net be mafle unless (a) Immediately eenreaid
Agreement between MBIA and the Issuer,
cial y the term
-Rall he . p su nt to
dammed to save sem paid pursuant to
Section
of .hien shall be approved by subsequent resolution the
ice Shall
section 25, a h.
and (b) the amount remaining in Such
Issuer. The Issuer shall next deposit from moneys remaining
vin
atter ,musty effect to the issuance of such ngoblige-
nag oblige -
each - -
in the Revenue Fund an am ant, . my, required by...h
Lions and the disposition of the hereof
Hereof Rall net
f
insolation auNcount M the ishence of mth unties eI BOM-
be leas eht, far
Reserve Requirement 2or any Hoods of that
into Bare, stein the Reserve Account My with-
any
.
e. Outs
sets!- ins Outstanding.
from sub in the Reserve Account mall be
drawals Lrem any subae
ed
room first moneys available in the
subsequently restored from
Cash, if any, on deposit I. the ..b..dmm in the Reserve
btheas
Revenue Fwd, a pro rata basis as to all ubaccounts 11.she.
.
for sanies 1990 Bonds will be drave
t,
Reserve Acceunt, attar all current applding def and aes ma -for
down completely
letel bee y the surety bete
eit befeze ansa demand is made
all
tions to the Debi Service FUM, including all deficiencies for
In th- event
In Ne event it is n ea cry to dray On Ne rarefy band, re.
.
print payments have been mads in full. ant.
paying Agent will a demand for payment least
n.0Notwithstanding
to the a in n en
Provision OL this contrary,
days. prior to He date- en which IUM-. are
data requited.
eq
it O
Shall the Issuer be requited to deposit coag ar moneys into
required
.The
.Th.
-
Paying Agent will maintain accurate records, verified. by MBIA
any subaccount in the Reserve Account in an amount greater
s to the under Ne bond
to bowing
.
than that amount necessary to ensure that the difference.
theua...tnt
and as to Na amounts paid and
paid t
ung to MBIA coder the terms
r the term.
between the Reserve. Requirement for the Series of Bonds far
qu
a
at the Financial Guaranty Agreement. My amounts owing to
which much subaccount as establishes andthealcu amounts
MBIA will be reimbursed before cash is replmisRed in He
depsii in sum subaccount on the data of calculation shall
I.
_ subaccount in the Reserve Account established for she Series
be restated not later than sixty (60) months after the initial
1990 Bonds. - -
' date of such deficiency (assuming equal monthly payments into
_.
account far safe, sixty (60) nH peried). The Issuer
Such-
The Issuer agrees to pay or to Cause to be Paid, solely:
y provide Nat He difference between the amounts an deposit
from the Pledged Revenues
9 n (which pledge shall De thereo .
1n such sUbaacowt and He Reserve Requirement for such series
G
inferiorandse ai¢ ¢ all respects. to the lien thereon..
of Bonds shall be a mount wverad by morainic, bond inamr-
Held
in favor. of the Holders I the Bonds, and She holders et any -
reputable and recognised mmScipal bend
issued by a r R
service Tax obligations), 'n11 amounts, including
ince
insurer, by a suretybend, by a latter Of reedit or any
-
.
Interest
interest due Hereon; due MBIA ender the terms of the.
combination by such other Lem of credit -fiancee
Financial Guaranty Agreement. such amounts due HBI. must
ll be subsequent resolution of she
menu as shall be ap
i n ., d pursuant
paid before this Resolution c nee Bmay
.There
which
Issues authorestab the aeries of Bonds for wbdch such
Me seri
ato
Se
Section 35- of this Resolution. may bg .o optional
b l
subaccount is established. In event subaoowt in the
redemption or refundings of Bonds or distribution. Of. Pledged
cambination of credit
vice aco
Reserve Account I. funded with
Revenues to the Ia ..less all ammurts owed to MXA under -
enhancements, my drawings well be on a pro rata basis. Such
the .terms. of the Financial Guaranty Agreement havebeenpaid..
solution mayalso provide for the substitution or replace -
sent of such . redit eedmncement or Of amounts On deposit in
(2) Upon the issuance of any Additional Parity obliga-
uch subaccount. Moneys or other security on deposit in each
tions under the terms, limitations. and conditions as are
respective subaccount in Ne Reserve Account shall Sy be
herein provided, the payments into the several accowts.dn she
appliad. to. payment of principal 04 redemption premium, if
Debt service Fund, excluding the Reserve Account which shall:
any, or interest as the outstanding ..rias of Bonds for which
be Increased as determined by the resolution of the Issuer _
.an see ..seat was established d Lar no ether series of
authorizing such Additional Parity Obligations, shall. be, .�
Bonds. Investments on deposit 1n each subaccount in th.
_ _.
34
33
increased in�subh amounts as shall be necessary to make the
payment for'the principal of, redemption premium, if any, and
Interest on for such Additional Parity Obligations on the Same
basis as hereinabove provided with respect t0 she Bonds issued
Under this Resolution.
(0) The Issuer Shall at be required to make any further
depesits into the Debt. service Fund in any month to the extent
the monthly deposits into the Debt Service Fund, including the
Reserve Account therein, required by this Section 15(B) have
been made by the Issuer and no deficiency exists in any
account in the Debt Service Fund.
(e). The balanc. of any moneys remaining in Ne Revenue
Fund after the above required payments have been made shall
he free from the lien and pledgee thereon in favor Of the
Holders of the Bonds and may be sued far any lawful purpose;
Provided, however, Hat nth . of said m y hall he released
from said lien and pledge nam shall said money be wed for
any purposes other than those hereinabove specified unless all
payments required to have been made by: some time Under this
Resolution, including any deficiencies for prior payments,
have been made in Lull and unless nth Reent of Default -ball -
have occurred and be continuing.
He further deposit shall be required to any of the
accounts in the Debt Service Fund when sufficient moneys are
on deposit in the accounts within the Debt Service Fund To pay
the principal, interest, and redemption premium, it any, on
all Bonds at maturity.
(5) The Debt Service Fund (including the accounts and
the subacoments therein), the Revenue Fend, the Public Service
Taxes Fund and any that special funds herein established and
Bated shell be deemed to be held in trust fee the purPeses
provided herein for such funds. The moneyyin all such faces
shall be ccntim.omalay s cured in she same net as meet. and
municipal deposits re ahthosiim to be secured by the laws
oI the State of Florida.
Honeys ern deposit in the Construction Fund, the Revenue
Pend, the Public Service Taxes Fund and invested and reinvestethe Debt Service d
excluding the Reserve Account, may
in Investment Securities which mature not later than the dates
which the moneys on deposit therein will be nodded for the
purpose of much fund. Moneys in each aubacem nt in she
Reserve Account, if any, may be invested and reinvested in
Investment Securities maturing not later than the latest
limbed. All i.... of BOY Bond L investments, r which such sexceppt for Income
eeab-
shall beinvestme�depts osited in the respective tunOne Ruse, Account and dsCond accmwts from
35
which such Investments were made and be used Sor,Ne.purposes-
thereof unless and until the amount required t0 be on deposit _
is n deposit therein„ and thereafter shall be deposited in
the Revenue Fund. Investment income on same, subaccount in the
Reserve Account shall be deposited and credited as determined
by subsequmt zesolptVan L the Izsum adopted pior to the
series of Bonds for hien such Schaccowt is established.
Investment income earned on the COnstructien Fund shall remain
On deposit, io the construction Fwd and shall be used. solely
for the purposes set forth in Sections a and 16E_ Of ,this
Resolution. - -
(6) In determining. the amount of any of the payments -
required to be made pursuant to His .Section -18(B),: credit
shall be given for all investment income .morning to .the
respective funds and accounts described herein.
p) Themoneys and Investment Securities required. to be
....anted for in each Of the funds., accounts and Detachments _.
account, t c
described
e be d nsimple
t, provided t adequate accoutings records are main-
tained to reflect and control the restricted allocation of the -
ash an deposit therein for thevarices purposes of such tuMs
and accounts as herein provided. The designation and matab-
lishment of the various funds in and by this Resolution shall
not be construed to require the, establishment of any cam-
n1at.1, ind.Dend.nt. selfbml... I. funds as such term is
rather is intended solely to constitute an earseasing or.
certain revenues and assets of the Issuer for certain purposes..
and to establish certain priorities for application of such
revenues and ...sts as herein provided.
(B) Notwithstanding anything to the contrary set forth
herein, nothing in this Resolution hall be construed as
preventing the Issuer free voluntarily depositing to the
Credit of any account I. the Debt Service lend moneys received
from any legallyavailable source other Nm the Pledged
Revenues, but the Issues shall have as obligation, directly
or indirectly, to make deposits to the Debt Service Fwd from
any funds of Ne Issues other Nm the Pledged Revenues.
C. ISSUANCE OF OTHER OBLIGATIONS. The I#uer shall issue no
bonds or obligations of any kind or nature payable from or enjoying
a lien on the Pledged Revenues if such Obligations have priority
over He Series 2990 Bonds with respect to payment or lien, nor
shall the Issuer create or cause or permit to be created anydebt,
lien, pledge, assignment, encumbrance or Other charge having
priority to or being an a parity wish the lien of the Series 1990
Bonds upon said Pledged Revenues; provided, -however, the I .... r may
issue Additional Parity Obligations ander the conditions and in the
manner provided in Section ISO hereof and may issue Public Service
36
Tax Obligations under the conditions and in the manner provided in
Section 18E bereef- Any obligations of the Issuer, other ,on the
Series 1990 Bands, Additional Parity Obligations and Public SO,iC.
Tax Obligations, which era payable from the Pledged Revenues shall
contain An express statement Cha[ ouch Obligations are junior and
subordinate in all respect to Che Hands a5 Co lien re and source
and security for paymentyfrom such Pledged Revenues.
O. ISSBANCE OP ADDITIONAL PARITY OBLIGATIONS. No Additional
Parity Obligations, payable on a parity from the Pledged Revenues
with the 'Bends herein authorised, shall be issued after the
issuance of any Bonds herein authoritad, except upon the conditions
and in Ne manner hereinafter provided.
(1) An independent certified public accountant shall
Certify no opine at the time of the issuance of the Additional
Parity Obligations that no Eveht of Default, as defined i
Section 19, exists hereunder. n
(2) Such independent certified public accewtanC Shall
certify or Opium at the -time of the issuance of the Additional
Parity Obligations that the Lo -1 Option GasTax, together
with the Public ServiceTaxesunless the lien thereon shall
have been released pursuant to the terms of Section 18R hereat
(adjusted as provided below), received by the Issuer during
VM the Fiscal Year immediately preceding the Fiscal Year in
issued or Additional twolast l of the Obligations
three full Fiscal Years
immediately preceding the Fiscal Year in which the Additional
Parity obligations are proposed to be issued shall have been
qual to not less than "St of the Maximo. Bond Service
Requirement on the Outstanding Bonds and the proposed Addi-
tional Parity Obligations during any Fiscal Year in which the
Additional Parity Obligations to be issued will be outatand-
Publi(3)Serve eTaal Cu for such axes and, if apperiod be licable, the
dusted to
include the estimated Local Option Ga. I.... or Public Service
Taxes, As Applicable, as certified me opined to by An inde-
pendent certified public accountant, that the Issuer would
have received from Or... that the Issues has annexed prior t0
the issuance Of the Additional Parity Obligations and not
fully reflected in such period.
(a) The Local Option Gas Taxes and, if applicable, the
Public Service Taxes, for such period may be adjusted to
include the estimated Local Option cane Taxes or Public Service
Taxes, as applicable, as certified no Opined to by a.
independent certified ublic ac—untant chat the I .... r would
have too ived during much period due to increase in the rate
of rates or a modification in the method of distribution of
1>
unsen
that the t, that the Issuer lss
Issuer has vexed would have received from areas
r to the issuance of
Public Service Tax Obligations endonot fully reflected i Ne
period. n such
(4) The Public Service Taxes far such period may be
adjusted to include the estimated Public Service Taxes, a
certified or bpin`ed to by an independent certified public
a c.untant, that the Issuer would have received during such
Period due to increase in the rate a rates Of soh Coxes
period.
during such period and not fully reflected in such
sax O(5) An independent certified public accountant shall
bli Opine at the elms .n issuance of we Public Service
Section 15 Obligations
that nn elent Of Default, s Carinea in
is h¢teuntler.
on the release and
hereunder on the Public Service Tae ssh.s m oe the lien created
Section I8N hereof, this Section shall be of a fully faith n
effect. o further force and
No Public Service Taz Obligations with ia
variable rate may be issued without we nterest payable at c ani et LABIA so s
long a
tBonds he Municipal Band Insurance Policy with respect t. the Series 1990
under. shall be in affect and LABIA shall not be in default there -
90 Public Service Tax Obligation
prs may be issued which include
premiums, e pewee to accelerate the principal Of and the redemption
if any, on such Public
if
shall be Service Taz Obligations for s
long as BoOueztanding under this Resolution. o
F. DISPOSITION OF PUBLIC SERVICR TAaM FUND. All Publi<
Service Taxes shall upon receipt thereof be deposited in the City
Publico Service aTaxest'and which Refunding
is hereby Improvement
ane extab-
deemed toAll d be held sits into such Public Service Tares Bund shall be
only for the in trust for the purpose herein Provided and used
Purposes and in Ne manner herein provided All
Public SerweCe Taxes at any time n deposit in the Public Service
Taxes Fund hall be disposed of in the following mawar in Che
following order of priority:
(1) In any available far in which there shall mat be sufficianL
thFundor deposit in the Debt Service Fund from
e Revenue iFwd to make any deposits required under the
SResolution, the Issues shall transfer from the Public Servicew
Gaxes Pd the required amounts needed to make the above
ated payments, including any deficiencies
m abs- Such payments shall be on a for print parity with any correy-
29
such tares effected during such period end not fully reflected
in such period.
The
Additional Parity resolution
Obligatia s shall recite [hate all of the
covenants
tionalParity yobligations,nwexcept tapplicable
p the bextent .otherwuch ise
provided in "is Resolution.
No Additional Parity Obligations with interest payable at A
varfable rate may be issued without the --sent of MBIA so long a
the municipal Bond Insurance Policy with respect to the series 199a
Bonds shall be in effect and MBIA shall not be in default there-
under.
E. ISSUANCE OF PUBLIC SERVICE TAX OBLIGATIONS. The Issuer
may issue Public Service Tax Obligations which shall be payable o
a parity with all Public Service Taxes required to be deposited to
the Debt Service Fund hereunder upon the conditions and in the
manner herein provided:
(1) There shall he obtained and filed with the Issuer
an opinion or a certificate of an independent certified public
accountant to the effect that the historical Local Option Gas
Taxes and Public Service Taxes (adjusted as provided below)
received by one Issuer during (i) the Fiscal Year immediately
preceding one Fiscal Year inwhich the Public Service Tax
Obligations are proposed to be issued or (ii) two of the last
three full Fiscal Years immediately preceding the Fiscal Year
in which the Public Service Tax Obligations are Proposed to
be issued shall have been equal to not less tMn 115% of the
'Maxims Bond Service Requirement on all Outstanding Bonds -
(2) There shall be Obtained and filed with the Issuer
an opinion or a certificate of an independent certified public
......cant to the effect that one portion of the historical
Public Service Taxes (adjusted as provided below) received by
the Issuer during (i) the 11s..1 Year immediately preceding
the Fiscal Year in which the Public Service Tax obligations
are proposed to be issued me (ii) to .f the last three Fiscal
Years immediately preceding the Fiscal Year in which the
Public Service Tax Obligations .,a proposed to be issued and
not required to be used to provide the covarage requirements
at forth in (1) above shall have been equal to not less than
120% Of the maximum annual debt Gold.. requirement en
Outstanding Public Service Tax Obligntios and Ne Public
Service Tax Obligations with respect to which such Certificate
is made.
(1) The Public Service Taxes for such period may
adjusted to include the estimated Public Service Texas, as
Certified or opined to by an independent Certified public
18
Service To. Obligati ens ants required to be made on Public
(2)Thereafter, and after any deposits required by para-
graph (1) above have been duly made, including any deficien-
Cie. far in
blic
Service Tex. Frior uand say be used by the Issuer for .aid any lawful
purpose and shall be free from the lien and pledge thereon in
favor o1 the Bolder. of the Bond. -
G. BOORS AND RECORDS. The Issuer will keep books and records
of the receipts ofthePledged Revenues which shall be separately
identifiable free all Other records and aunts Of the Issuer, in
which complete and correct entries shall be made o1 revenues col-
lected and any holder of Bends issued oswant to thisResolution
ve
.ball hathe right at all r n able times to impact all
records, accounts and data of the Issuer relating thereto.
The Issuer shell'
at least e a a year, cause the books,
records and a unts at
to the collection of the Pledged
Revenues to be oproperly audited in accordance with generally
accepted auditing standards applicable to public bodies such a
the Issuer, by a firm o1 independent certified public accountants,
and shall make available the report of the certified public
accountants at all reasonable times to any holder .r holders of
the Bonds issued ursuant t0 this Resolution .r any one acting for
and on behalf o1 such Bondholder or Bondholders and shall mail a
copy o1 such report to the original purchaser of the Bonds. Such
audit may be incorporated into and made a part of the annual audit
of the Issuer required by Florida lay.
B. LEVY OF PLEDGED REVENUES. The Issuer will net repeal or
adversely amend its Charter, ordinances, resolutions or interlocal
agreements relating to the Pledged Revenues so as to impair the
power and obligations of the Issuer to Collett such Pledged
Be...
I. PLEDGED REVENUES NOT SUBJECT TO REPEAL- The Issuer has
full power to irrevocably pledge such Pledged Revenues to the S
payment Of the principal e, redemption, premium,if any, and
interest on the Bonds, and the pledging of such Pedged Revenues
in the manner provided herein and the covenants contained herein
-
sunstitute a contract between the City and the Bondholders not
bject to repeal, impairment or modification by any subsequent
erdi.., s ... lution or that proceedings of the Issuer except to
the extent expressly authorized by this Resolution.
J. 'ENFORCEMENT OF COLLECTIONS. The Issuer will diligently
enforce and collect the Pledged Revenues herein pledged; will take
steps, actions and proceedings for the enforcement and collection
of Such Pledged Revenues as shall become delinquent to the full
extent permitted or authorized by law; and will maintain accurate
40
records with respect thereof. All such Pledged Revenues herein
Pledged shall„as collected, be held in trust to be applied as
herein provided and not otherwise.
H. RELEASE OF PUBLIC SERVICE TAXES. Notwithstanding any
provision of this Resolution to the contrary, the lien Of and r
pledge of the Public Service Taxes in favor f the Holders of the
Bonds shall be released and extinguished upon receipt by the Issuer
of a certificate or an opinion of an independent certified public
accountant which certifies or opines, as applicable, that the Local
Option Gas Tax received by the Issuer during each of the two
preceding ...plate Fiscal Years shall have been equal to not less
than 115% of the Maximum Boad Selina Requirement n the Outstand-
IssBonds as of Use data of each certificate or opinion. The
uer will provide written notification of such r lease to the
Bond Insurer. NO release shall become effective if The Issuer
shall ewe nays to MBIA under the terms of the Financial Guaranty
Agreement referred to in Section 1BB(1)(d) hereof.
SECTION 19. EVENTS OF DEM"T. The following events shall
each constitute an "Event of Default
(A) Default shall be made in the payment of the principal of,
redemption premium or interest on any Bond when due.
(B) There shall occur the dissolution or liquidation of The
Issuer, or the filing by the Issuer of a voluntary petition in
bankruptcy, or the commission by the Issuer of any act of banA-
ruptcy, or adjudication of the Issuer as a bankrupt, or assignment
by the Issuer for the benefit .f its creditors, or appointment of
receiver for the Issuer, or the entry by the Issuer into an
agreement of composition with its creditors, me the approval by a
court Of competent jurisdiction of petition applicable to The
Issuer in any proceeding for its reorganization instituted under
the provisions t The Federal Bankruptcy Act, as amended, or under
any 1.13ar act in any jurisdiction which may now be in eft. or
hereafter enacted.
(C) The Issuer shall default in the .flue and punctual Parfet -
of any other f the covenants, conditions, agreements and
provisions contained in the Bonds or in this Resolution on the part
of The Issuer to be performed, 'and much default shall Continue far
a period of thirty (30) days after written =ties of such default
shall have Men received from The Holders of not less than twenty-
five percent (25%) of The aggregate principal amount of Bonds
Outstanding.Notwithstanding the foregoing, the Issuer shall not
be deemed in default hereunder if such default can be cured within
a reasonable period of time and if the Issuer in good faith
institutes curative action and diligently pursues .can action until
the default he. been an treated.
41
Bonds or any trustee acting on behalf of such Holders shall not
Include The power to accelerate the principal of and the redemption
premiums, if any, on the Bonds.
SECTION 23. WAIVER OF DEFAULT. No delay or omission of any
Bondholder to exercise any right or power accruing upon any default =
shall impair any such right r power or shall be c msttued to be
waiver ofane such default, r an acquiescence therein; and ovary
Power and rem dy given by this Resolution to the Bondholders y
be exercised from time to time, and as often as may be deemed
expedient.
SECTION 24. APPLICATION OF MONEYS AFTER DEFAULT. If an Event
of Desault shall happen and shall not have been remedied, the
Issuer or a trustee or receiver appointed for the purpose shall
apply all pledged Revenues as fellows and in the following order:
(A) To the payment of the reasonable and proper charges,
expenses and liabilities of the trustee or receiver, Registrar and
Paying Agent h.reunder; and
(B) To the payment of the interest and principal or redemption
Prism, if applicable, then due an the Bends, as fellows:
(1) All such moneys shall be applied
FIRST: to the payment to the persons entitled thereto
of all installments of interest then due, in the order of The
maturity of such installments, and, if the ..Out availabl.
shall not be sufficient to pay in full any particular install -
ant, then to she payment ratably, according to the amounts
due an uch installment, to the persons entitled thereto,
without any discrimination or preference;
SECOND: to the payment to the persons entitled thereto
of the unpaid principal of any of the Bonds which shall have
became due at maturity or upon mandatory redemption prior to
maturity (ether than Bonds called fee redemption for the
payment of which moneys are held pursuant to The provisions
of this Resolution),, in the order of their due dates, with
interest upon such Bonds from the respective dates upon which
They became due,d, iI the amount available shall not be
sufficient to pay din full Bends due on any particular data,
together with such interest, than to the payment first of such
Interest, ratably according to the amount of such interest due
on such date, and Then to the payment C such princial,
p
ratably according to thea mount of Guam principal due on such
date, tothe persons entitled thereto without any
discrimination or preference; and
SECTION 20. ARENEDIES. Any Holder of Bends issued under the
provisions of this Resolution or any trustee or receiver acting for
such Bondholders may either at lav or in equity, by suit, action,
mandamus or other proceedings in any court of competent jurisdic-
tion, protect and on,.roe any and all rights under the laws of the
State of Florida, or granted and contained in this Resolution, and
maenforce and compel. the performance of all duties required by
this RmacLuti.. on by any applicable statutes to be performed by
Ne Issuer or by any fti--c thereof
The Holder or Holders If Bones in an aggregate principal
amount of net less than twenty -Live portent (25%) of the Bonds then
Outstanding may by a duly ...outed certificate in writing appoint
a trustee for Holders of Bonds issued pursuant to This Resolution
with authority to represent such Bondholders in any legal proceed-
ings get the enforcement and Panasonic- of the rights of much, Bond-
holders and such certificate Shall be executed by much Bondholders
or their duly authorized attorneys or 'representatives, and shall
be filed in the office of the Clerk. Notice of such appointment,
together with evidence of the requisite signatures of The Holders
of not less than twenty-five percent (25%) in aggregate principal
amount of Bonds Outstanding ad the trust instrument under which
the trustee shall have agreed to serve shall be Tiled with the
Issuer and the trustee and notice of appointment shall he given to
all Hiltless of Bends in the same manner as notices of redemption
are given hereunder. Nom a than no trustee may at any one time
-De appointed to represent such Bondholders; however, the Holders
of a majority in aggregate principal amount of 11 the Bends than
outstanding
a subsequent S. cessorsremove tho e at
ny time.ng d appoint
successorSECTION 21. DIRECTIONS TO TRUSTEE AS TO REMEDIAL PRO-
CEEDINGS. The Holders of a majority in principal amount of The
Bends Then outstanding have the right, by an instrument or ...
current instruments in writing executed and delivered to the
trustee, to direct the method and place Of conducting all remedial
proceedings to be taken by the trustee hereunder, provided that
such direction shall not be otherwise than in accordance with law
r the provisions hereof, and that the trustee shall have the right
to decline to follow any such direction which in the opinion of the
trustee would be unjustly, prejudicial to Helder. of Bonds not
parties to such direction.
SECTION 22. RFtIDIES CUMULATIVE. He remedy herein contacted
Of
I,.. orer... le to the diecholdd each anddenverto,ch r®edyiahall
be cumulativee, and shall M in addition to every other remedy given
hereunder or new or hereafter existing at law or in equity o by
statute.
Notwithstanding the foregoing er any provision of this Resolu-
tion to the contrary, the remedies granted to the Holders of the
42
THIRD: /to the payment of the redemption price of any
Bonds called for =pti..l redemption pursuant to the provi-
sions of this Resolution.
Notwithstanding the foregoing or any provision of this Resolu-
tion to the contrary, amounts oa deposit in each subsccouat in th.
e
ReseryAccount shall be applied solely for the payment of princi-
pal of, redemption premium, if any, and interest on the series of
Bends fee which such subaceount was established and fee me other
Purpose, including the nother
ofrprincipal of, redemption premium
if _ y, and interest o Cher s ies of Bonds. ,
SECTION 25. MODIFICATION OR AMENDMENT. Except as provided
is Section 26 hereof, as material modification or amendment of this
Resolution or of any resolution amendateiry hereof or supplemental
hereto may be made without the consent 'n writing of the holders
If fifty -ane percent (51%) or mere in the principal amount and
Compoundedhe Amounts of the Bonds then outstanding. For purposes of
iinsured b y preceding sentence, to the extent any Bonds are
nsure y a policy of municipal bond insurance or similar credit
facility and such Bonds are than rated in as high a rating category
as the rating categry in which such Bonds were rated t the tim
of initial issuance and deliver thereof by either Standard a poor'.
Corporation or Moody'. Investmr. Se -vice, inc., or successors and
assigns, then the ca nsent of she issuer f soon municipal bond
a
i e policy orThe issuer of such similar credit facility
shall be deemed to constitute the consent of the Holder of such
Bend., as applicabl.. Notwithstanding any s
Provision of this
action to the contrary, ne modification or amendment hall permit
a change in the maturity of the Bends or a reduction in the note
of interest thereon or in the amount of the principal obligation
thereof or aff..tin, the promise o1 the Issuer to pay The principal
of and interest an the Bonds as the same shall become due from the
Pledged Revenues or reduce the percentage of the Holders of the
a=nds required to consent to any material modification or sme:Wment
hereof without the consent If the Helder er Helder. of all the
Bonds thea Outstanding. Na such modification me amendment pursuant
to this Section 15 shall be made without the content of the Bend
Insurer provided however, the comment of such Bend Insurer shall
net be required if such Bond Insurer shall then be in default under
its policy of municipal bond insurance. Copies of any can
amendment consented to by MBIA shall be sent to SGP.
SECTION 26. MODIFICATION OR ANENDHENTS WITHOUT CONSENT. She
Issuer, from time to time and at any time and without the consent
Of concurrence of any Helder of any Bends, may adopt a resolution
amendatory hereof or supplemental hereto, if the provisions of such
supplemental resolution shall net adversely affect the rights of
er.
the Heldof the Heads then Outstanding, for any as or of
the following purposes:
4
u
A. To make any changes Or corrections in this Resolution a
to which the Issuer shall have been advised by counsel are required
for the purpose of curing or cortectingany ambiguity or defective
or inconsistent provisie� at o emission r mistake at manifest at
contained in this Resolution, or to insert in this Resolution such
provisions Clarifying maths. or questions arising under this Same -
lotion as are necessary ar desirable;
B. To add additional c ants and agreements of Me Issuer
for Me purpose of further securing the payments of Me Bonds;
C. TO surrender any right, power or privilege reserved to or
conferred upon Me Issuer by the terms of this Resolution;
D. To confirm as further assurance any lien, pledge or e
charge, at Me subjection to any lien, pledge at Charge, c .ted
or to be created by the provisions of this Resolution;
E. To grant to or onfer upon Me Holders any additional
right, remedies, powers authority orsecurity that lawfully may
be granted to Or conferred upon them;
F. To auth.riz. the issuance of Additional Bonds;
G. To ase Compliance with Federal "arbitrage" provisions
in effect from time to time; and
H. To maintain Me exclusion of interest from grass income
of the Holders of Me Bends, ether than Bends, Me interest an
which is taxable for purposes of Federal income taxation.
The Issuer shall not adept any supplemental resolution auMe-
rized by Me foregoing provisions of this Section unless in Me
opinion of Band counsel Me adoption of such supplemental resolu-
tion is permitted by Me foregoing previsions of this section.
Me Issuer abaci, at its option, be entitled to rely
counslaxively upon an opinion Of Band Counsel with respect to
whether Me adoption of any supplemental resolution is permitted
pursuaat to this Settle..
SECTION 27. HOLDERS NOT AFFECTED BY USE OF PROCEEDS. The
Holders eI Me Bends shall have no responsibility for Me man of
Me proceeds thereof, and Me use of such proceeds by the Issuer
shall in .. way affect Me rights of such Holder.. The Issuer
shall be irrevocably obligated to continue t0 levy and collect Me
Pledged Revenues as provided herein and to pay Me principal of and
interest an the Bends and to make all reserve and other payments
provided for herein from the Pledged Revenues notwithstanding ODY
failure of Me issuer to use and apply such proceeds in Me womer
provided harein.
49
failure to c a.t.'M. Rebate Fund shall not adversely affect Me
...lusimn of interest an such Series 1990 Bonds from gross income
for purposes at Federal income taxation. Moneys in the Rebate Fund
shall not be considered Pledged Revenues and shall not M pledged
in any manner for Me benefit of Me holders of Me Series 1990
Bands. Honeys in the Rebate Fund (including earnings and deposits
therein) shall be held. ter future payment to Me United States
Government as required by Me United States Treasury R<golatians
and as set forth in instructions of Bond Counsel delivered to Me
Issuer upon issuance of Me Sari.. 1990 -Bods.
Notwithstanding any prevision of Mi. Resolution to Me
contrary, to Me extent Me Issuer is required to make deposits to
Me Rebate Pond, such amounts may as taken from any fund or account
Created hereunder.
SECTION 10. SEVERABILITY OF INVALID PROVISIONS. If any -
a -or mare of the Covenants, agreements or provisions herein contained
shall be held contrary to any express prevision of law or contrary
to Me policy of express lav, though net expresslyprohibited, r
against public policy, or shall for any reason was
...
over
be held
invalid, Men such c ants, agreements or provisions shall be
null and void and shall be deemed separable from Me remaining
ovenants, agreements Or provisions and shall in no way affect the
validity of any of the ether provisions hereof Or Of Me Bands
issued hereunder.
SECTION 11. CAPITAL APPRECIATION BONDS. For Me purposes of
(i) receiving payment of the redemption price of a CaPitered Pe
Clarion Bond it redeemed prior to maturity, (ii) computing
Service Requirement, and (iii) computing Me amount of Holders
required for any notice, consent, request Or dew d.heremnder for
any purpose whatsoever, the principal amount of a Capital Appre-
ciation Bond shall he deemed to be its CampouMed Amounts as of Me
date on Mich Me payment is due, or Me computation is made.
SECTION 12. NOTICES TO MBIA. For sn long as Me Series 1990
Bonds are 'outstanding, MBIA will be furnished a copy of all sig-
nificant notices with respect to this Resolution or Me Bonds as
fellows:
Hunicipal Head Investors Assuramca Corporation
115 King Street
Armonk, New York 10506
Attention: Surveillance Department
SECTION 55. INCONSISTENT RESOLUTIONS. All prier resolutlew
of Me Issuer inconsistent with Me provisions of this Resolution
are hereby modified, supplemented and amended to Ionto. with Me
provisions herein contained.
SECTION 28. !DEFEASANCE. I0, at any time, the Issuer shall
have paid, Or shall have made prevision for payment of, Me prin-
cipal, interest and redemption premioms, if any, with respect to
Me Bonds, Men, and in Mat event, Me pledge Of and lien On the
Pledged Revenues, in favor of Me holders of Me Bonds shall be no
longer in effect. For purposes Of the preceding sentence, deposit
of sufficient ahand/or principal of Acquired Obligati... do a
irrevocable trust with a banking institution or trust company, for
M
e sole benefit Of Me Bendhalders, which together with income on
Such Acquired Obligations will be sufficient to make timely payment
Of Me principal, interest, and redemption premiums, if any, on Me
Outstanding Bonds as May Come due, whether at maturity or Me date
s
fired for redemption, shall be considered 'Provision for payment.^
Nothing herein hall be deemed to reair. Me Issuer to call any
Of Me Outstanding Bonds far redemption prior to maturity pursuant
to any applicable Optional redemption previsions, at to impit Me
discretion Of Me Issuer in determining whether to exercise say
such optima for early redemption.
Notwithstanding Me fereg.ing, all references t. Me discharge
and satisfaction of Bands shall include the discharge and satisfac-
tion Of any issue Or series of Bonds, any portion of an i
a
Cries of Bonds, any maturity Or maturities of an ise or
su...ies
of Bends, any portion of a maturity of an issue or serves of Bands
Or any Combination of Me foregoing.
SECTION 29. TAx COVENANT. No aa.will be mads of the pro-
ceeds c1 Me Series 1990 Bonds which, if such use were reasonably
expected on Me date of issuance of the Series 1990 Bends, would
Cause Me same to be "arbitrage bends" within Me meaning of Me
Internal Revenue Code of 1986, as amended. The Issuer at 11 times
bile Me Series 1990 Bonds and Me interest thereon are outstand-
ing will comply with Me requirements of the Internal Revenue Cede
01 1986, as amended, and any valid and applicable rules and regula-
tions promulgated thereunder necessary M maintain Me exclusion
Of Me interest on Me Series 1990 Bends from federal grass income
including the creation of may rebate funds er other funds and/or
accounts required in that regard.
The Issuer shall at all times do and perform all acts and
things or
desirable tted able inmrderytoaw and tmamas. thatis Rinterest paidwhich
anare
MeSerienecessary990
Banda will be excluded free gross income far federal income tax
Purposes and shall take no action that would re sult in such inter-
est net being excluded free gross income far federal income tax
purposes.
In order to immure ...liance with the rebate provisions o1
Section 148(f) of the Cade with respect to Me Series 1990 Bands
Me Issuer hereby create. Me Rebate Fund to be held by Me
Trustee. Me Rebate Fund need net be maintained if Me Issuer
shall have received an opinion of Bond Counsel to Me effect Mat
<6
SECTION la. /EFFECTIVE DATE. The provisions of this Res.-
lutian shall take effect immediately open its passing.
PASSED AND ADOPTED by the CityCoission o1 Me .City of
Dome., Florida, on this 9-Edayo1A�� {��m,m,
�yL, 1990.
ATTEST: APPROVED:
CITY OCOEE, FLORIDA
C Clerk Payer
(SEAL)
FOR USE AND RELIANCE ONLY
. APPROVED BY THE OCOEE CITY
BY THE CITY OF OCOEE,
COMMIS,,SION A'{
A HEELING HELD
APPROVED AS TO FORK AND
ON
iA 1991
LEGALITY, this
_ _L(.,�,��,Y
UNDER AGER AG DA
ITEM NO.I ei
day of d, Ir n- 199.
FOLEY L LARCHES, VAN DEN BERG,
GAY, BURNS, WILSON 6 ARKIN
By: ,
City Attorney
ae
47
RESOLUTION NO. 90-il
A RESOLUTION Al4ENDING A RESOLUTION ENTITLEl1: "A
RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OCOEE,
FLORIDA, AUTHORIZING THE REFUNDING OF CERTAIN PRESENTLY
OUTBTANDING OBLIGATIONS OF THE CITY OF OCOEE, FLORIDA;
AUTHORIZING THE ACQUISITION OF RIGHTS-OF-WAY, DESIGN,
CONSTRUCTION, PAVING AND IMPROVf4ENT OF CERTAIN STREETS
AND INTERSECTIONS WITHIN AND WITHOUT THE CITY LIMITS OF
THE CITY OF OCOEE, FLORIDA; AUTHORIZING THE ISSUANCE OF
NOT EXCEEDING�$7.000,000 TRANSPORTATION REFUNDING AND
...............eve o ,nI BONDS OF THE CITY TO BE APPLIED TO
Ip ANY, IN RESPECT TO SUCH PRESENTLY 0u't'ai':u+uanvPLE0G2NG
TIONS AND TO FINANCE THE COST OF SUCH PROdECZ;
REVENUES DERIVED FROM THE LOCAL OPTION GAS TAX, THE
Ill
PUBLPAYNENT OF TSAIO BONDS;AXES AIM
TAIN FURTHER PEARNINGS FOR
LEGG IWESTEHT NG AMOUNTS ON
DEPOSIT N THE DEBT SERVICE FUND AND THE CONSTRUCTION
FUND CREATED PURSUANT To THIS RESOLUTION; PROVIDING FOR
THE RELEASE AND EXTINGUISHMENT OF THE
LIEN ON AGRUCH PUBLIC
SERVICE TAXES; NAMING CERTAIN COVENANTS AND AGREE,
IN CONNECTION THEREWITH; PROVIDING FOR THE SEVERABILITY
OF INVALID PROVISIONS; PROVIDING FOR THE REPEAL OF ANY
RESOLUTIONS IN CONFLICT WITH THE PROVISIONS OF THIS
RESOLUTION; PROVIDING CERTAIN OTHER MATTERS IN CONNECTION
SECTIONS
1 AND E, 183(1) (d) EFFECTIVE
ISE AND£29 THEREOF; AND
9£CTIOIN lA, 16E,
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Of Ocoee, Florida (the "Issuer") on August
21, 1990, adapted Resolution N.. 9os" (the Transportation
Resolution')ta
authorizing the issuance .f not to exceed 5'!,000, P°r
Refunding and Improvement Revenue Bonds; and
WHEREAS, the Issuer. has determined that it is necessary to
amend the Resolution.
NON, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY. OF OCOEE, FLORIDA, AS FOLLOWS:
SECTION 1. .Section 10 of the Resolution is hereby amended to
read as follows:
SECTION 10. EXCHANGE OF SERIES 1990 BONDS.. Any
Series 1990 Bond, upon surrender thereof at the principal
corporate trust OCE ice of the Regih
strar (.I if the
Clark
is the Registrar, at the office f the Clerk), ogether
With an assignment duly executed by the Bondholder or all
his
attorney or legal representative ma -sect them as option Of
be satisfactory to the Registrar, a• a ee Option
the Bondholder, be exchanged for an ggtega principal
1
Pram moneys remaining in the Revenue Fund an amount, i.
an,, required by each r ... I.tion authorizing the issuance
Of each series of Bonds into each subaccount within the
Reserve Account. Any withdrawals from any subaccount -n
the Reserve Account shall be subsequently restored from
the first moneys available in the Revenue Fund, on a Prc
rata basis as to all so, .... unts in the Reserve Account,
after all current applications and allocations to the
Debt service Fund, including all deficiencies for prier
payments have been made in full. Notwithstanding any
provision of this Resolution to the conttaryy, in no event
shall the Issuer be required to deposit cash Or .°neys
into any subaccount in the Reserve Account in an amount
greater than that amount necessary to ensure that the
difference between the Reserve Requirement for the series
Of Bonds for which such subaccount was established and
es
the amounts On deposit in such subaccount On the data of
calculation shall be restored net later than sixty (60)
...the after the initial date Of 'such deficiency (assum-
i g equal monthly payments into such account for such.
sixty (6d .°nth period). The Issuer may provide that'
the difference between the amounts on deposit in such
subaccount and the Reserve Requirement for such series
of Bonds shall be an amount coveredby obtaining bond
insurance issued by a reputable Wad recognized munici-
pal bond insurer, by a surety bond, by a letter of credit
r any combination thereof ar by such ether form of
credit enhancement as shall be approved by subsequent
resolution of the Issuer authorizing the series .f Bands
Poi which such subaccount is established. In the event
subaccount in the Reserve Account 1s funded with a
Combination of credit enhancements, any drawings will be
n a pro rata basis. Such r Olutien may also provide
forthesubstitution or replacemant OC such credit
enhancement or Of amounts on deposit in such subaccount.
Honeys or other security on deposit in each respective
subaccount in the Reserve Account shall only be applied
far payment of principal of, redemption premium, i a
of interest On the Outstanding serves of Bonds for which
such subaccount vas established and for n i
other sex e
of Bonds. Investmens on deposit in each subaccountin
IS
the Reserve An .... t shall be Valued as determined by the
resolution authorizing such series of Bonds for which
such subaccount was established. Investments, if any,
on deposit an the subaccount in the Reserve Account
established for the Series 1990 Bonds shall be valued at
cost. In the event of the refunding Of any serirs of
Bonds, the Issuer may withdraw it.. the subaccount Within
the Reserve Account for such series OC Bonds, all or any
portion of the amounts accumulated therein with respect
to the Bends being refunded and deposit such amounts as
required by the resolution authorizing Gas refundiwalng
of
su h series of Bonds; prow hosur
ru
J'
amount of Series 1990 Bonds eoual to the principal amount
and of the same maturity and type of the Series 1990 Bcrd-
.r Series 1990 Bonds as surrendered.' _
The Registrar shall make provision for the exchange
of Bonds at the principal corporate trust office of the
he
f the Clerk)
Hfoe Clerk is the Registrar, t
SECTION 2. Section 16E of the R ... lotion is hereby amended
to read as follow:
E. The balance of the Series 1990 Bond proceeds
after pimvidi.g for the payments required by A, B, C.and
D above, shall be dem.sited t0 the "CSey of Ocoee
Transportation Aetunding and Im°rov¢ment Base... Sundd
Construction Food" which fund is hereby created
established and which may be sed for the purposes sec
[Orth herein. Such Construction Fund shall constitute
a trust fund and shall be used solely,(I) to pay the cast
of the Series 1990 Project, including the Ieimbursa.ent
to the Issuer of money. spent on the Serie 1990 Project..
in anticipation of the sale of and the is ...... .the
Series 1990 Bends and Cil) to make required deposits t-_
the Debt Service Fund in the event sufficient funds are
not on deposit therein on the required daces. ITO Issuer
agrees and ...anent. to commence and proceed with
reasonable diligence and in good faith to complete the
construction of the Series 1990 Project Upon the
completion of the Series 1990 Project, excess moneys on
deposit in the Construction Fund may be used by the
Issuer for any lawful purpose and shall be free f... the
pledge thereof and the lienprovided that Sn the enc the
Holders of the Bonds; prow elect
Issuer purposes to use amounts on deposit in the
construction Fund for .,her than a tr-CIP.rtati.n
projnot, as defined in Section 336.025(7), .Florida
Statutes, the Issuer shall have first received an opinion
01 Bond Counsel to the effect that such use will of in
and by itself, cause the interest' oa the Series .1990
Bonds to be included in the groom Income of th.lHeld...
01 such Series 1990 Bonds for purposes m
ncome
taxation.
SECTION 3. section ISHII)(d) of the Resolution 'I hereby
amended to read as follows:
(d) The Issuer will initially provide for the
Reserve Requirement for the Series 1990 Bonds by the
purchase of a surety bond free MBIA pursuant to the terms
If a Financial Guaranty Agreement between MBIA and the
Issuer, the form of which shall be approved by subsequent
resolution of the 1saver. The Issuer .hall next deposit
2
of be made unless (a) immediately thereafter the Bonds
being refunded shall be deemed to have been paid pursuant,
o
to Section- 28, and (b) the a cunt remaining n such
subaccount after giving effect to the issuance Of such
refunding Obligations and the disposition Of the proceeds
thereof shall not be less than the Reserve Requirement
for any Bonds OC that series then Outstanding.'
cash, if any, on deposit in the subaccount in the
Reserve Account established for the Series 1990 Bonds
will be drawn down completely before any demand is made
on the surety bend. In the event it is necesary to draw
on the surety band, the Paying Agent will de Liver a
demand for payment at least three days prior to the date
which foods are 0 ... ired. The Paying Agent will
maintain accurate records, verified by MBIA as to the
amount available to be drawn under the surety bend and
s to thea .are paid and owing to MBIA under the terms
Of the Fin ... Jol Guaranty Agreement. Any amounts owing
to MBIA under the Financial Guaranty Agreement will be
reimbursed before cash is replenished in the subacc.unt
in the Reserve Account established for the Series 1990
Bonds.
The Issuer agrees to pay or to cause to. be paid,
alely from the Pledged Revenues (which pledge shall be
junior, inferior and subordinate in all r .... or. t0 the
lien thereon in favor. of the Holders of the Bonds and the
holders Of any Public Service Tax Obligations), all
amounts, including 'interest due thereon, due MBIA under
the terms Of the Financial Guaranty Agreement. All such
amounts due MBIA most be paid before this Resolution ---
be dafeased pursuant to Section 28 OC this Resolution.
There may be no optional redemption Or refunding Of Bonds
d Revenues to
allmecontstio d t. n of MMIA :under the terms the1....
the Financial
e
Guaranty Agr ment have been paid. o
SECTION a. Section 10C of the Resolution is hereby amended
to. read as follows:
C. ISSUANCE OF OTHER OBLIGATIONS. The Issuer
shall issue as bends or Obligations of any kind or nature,
payable. Isom or enjoying a lien on the Pledged Revenues
if such obligations have priority over the 'series 1990
Bonds with respect to payment Or lien, nor shall the
Issuer create Or cause or permit to be created any debt,
lien, pledge, assignment, encumbrance o Other charge
o
having priority to or being on a parity with the lien f
the Series 1990 Bonds upon said Pledged Revenues;
provided, however, the Issuer may issue Additional Parity
Obligations under the conditions and in the manner pre-
vided in Section 180 hereof and may issue public Service
Tax Obligations under the conditions and in the manner
provided in Section ISE hereof. Any obligations of the
Issuer, other than the Series 1990 Bonds, Additional
Parity Obligations and Public Service Tax Obligations,
which are payable from the Pledged Revenues shall ...Dain
an express statement that such obligations are junior and
subordinate in all respect to the Bands and the Public
Service Tax Obligations as t0 lien an and source and
security for payment from such Pledged Revenues.
SECTION 5. Section ISE Of the Resolution is hereby amended
t0 read as follows:
E. ISSUANCE OF PUBLIC SERVICE TAX OBLIGATIONS. The
Issuer may issue Public Service Tax obligations which
shall be payable o a parity with all Public Service
Taxes required to be deposited to the Debt Service Fund
hereunder upon the conditions and in the manner herein
provided:
(1) There shall be Obtained and filed with the
Issuer an opinion or a certificate of an independent
certified public accountant to the effect that the
historical Local Option Gas Taxes and Public Service
Taxes (adjusted as provided below) received by the
Issuer during (i) the nSbc l Year immediately
preceding the Fiscal Year in which the Public
Service Tax Obligations are prop ... d to be issued
or (ii) two of the last three full Fiscal Years
immediately preceding -the Fiscal Year in which the
public Service Tax Obligations are proposed to be
issued shall have been egoal to not less than 135{
of the Maximum' Bond Service Requirement on ail
Outstanding Bonds.
(2) There sbell be obtained and filed with the
Issuer an opinion or a certificate of an independent
certified public accountant to the effect that the
portion of the historical Public Service Taxes
(adjusted as provided below) received by the Issuer
during (1) the Fiscal Year immediately preceding
the Fiscal Year in which the Public service Tax
Obligations are proposed to be issued or (ii) two
of the last three Fiscal Years immediately preceding
the Fiscal Year in which the Public Service Tax
obligations are proposed to be issued and net
raquired t0 be used to provide the coverage require-
ments set forth in (1) above Shall have been equal
to hot less than 1202 of the maximum annual debt
service requirement on any Outstanding Public
Service Tax Obligations and the Public Service Tax
Obligations with respect to which such certificate
I. made.
S
Series 1990 Bonds and the interest thereon are Outsmand-
ing will comply with the requireaents of the Internal
Revenue Code of 1996, as ....Sod, and any valid and
applicable rules and regulations promulgated thereunder
necessary to maintain the exclusion of the interest on
the Series 1990 Bonds from Federal gross income including
the creation Of any rebate Funds or other funds and/or
accounts raquired in that regard.
The Issuer shall at all times d0 and perform all
acts and things permitted by law and this Res0lution
which mre necessary Or desirable in order to assure that
interest paid On the Series 1990 Bonds will be excluded
from gross income for federal income tax purposes and
.ball take he action that would result in such interest
not being excluded from gross income for federal income
tax -purposes.
In order to compliance with the rebate
Provisions of Section 169(£) of the Code with respect to
the Series 1990 Bonds the Issuer hereby creates the
Rebate Fund to be held by the Issuer. The Rebate Fund
Sed not be maintained if the Issuer shall have received
an opinion of Bond Counsel to the effect that failure to
create the Rebate Fund shall not adversely affect the
exclusion of interest on such Series 1990 Bonds from
gross income for purposes of Federal income taxition.
Moneys in the Rebate Fund shall net be considered Pledged
Revenues and shall net be pledged in any manner for the
benefit of the holders of the Series 1990 Bonds. Moneys
in the Rebate Fund (including earnings and deposits
therein) shall be held for future payment to the United
States Government as required by the United States
Treasury Regulations and as set forth in instructions Of
Bond Counsel delivered to the Issuer upon issuance of the
Series 1990 Bonds.
Notwithstanding any provision of this Resolution to
the contrary, to the extent the Issuer is required to
make deposits to the Rebate Fund, such amounts may be
taken from any fund or account created hereunder.
SECTION 7. Except is
ended by this resolution, Resolution
No. 90-08 Shall remain in full force and effect.
SECTION S. The provisions Of this resolution shall take
effect immediately upon its passing.
(3) The Local Option Gas Tax and Public
Service Taxes for such period may be adjusted to
include the estimated Local ODtion Gas Tax or Public
Service Taxes, as applicable, as certified or opined
to by an independent certified public accountant,
Chat the Issuer would have received Jr.. areas that
the Issuer has annexed prior to the iu once of the
Public Service Tax Obligations andnot fully
reflected in such period.
(a) The Local Option Gas Tax and the Public
Service Taxes for such period may be adjusted to
include the estimated Local Option Gas Tax or Public
Service Taxes, as applicable, as certified or opined
to by an independent certified public .....error,
that the Issuer would have received during such
period due to increase in the rate or rates or a
modification in the method of distribution of ...h
taxes effected during such period and not fully
reflected in such period.
(5) An independent certified public accountant
shall certify ar opine at the time of issuance of
the Public Service Tax Obligations that no Event of
Default, as defined in Section 19, exists hereunder.
No Public, Service Tax Obligations with interest pay-
able at a variable rate may be issued without the consent
of MBIA SO long as the Municipal Bond Insurance Policy
with respect to the Series 1990 Bonds shall be in effect
and MBIA shall not be indefaultthereunder.
No Public Service Tax Obligations may be issued
which include the power to accelerate the principal
lof
and the redemption premiums, if any, •
ic
Service Tax obligations fee So long as Bonds Shall be
Outstanding under ibis Resclutien.
Upon the release and extinguishment of the lien
created hereunder on the public $ervice Taxes, as more
fully set forth in Section 16K hereof, this Section shall
be Of no further Force and affect.
SECTION 6- Section 29 Of the Resolution is hereby amended to
read as follows:
SECPION 29. TAX COVENANT. No use will be made of
the proceeds l the expes ected on 990 Bonds the date Of which, if use
the
were seasonably s, w Of
Sanas 1990 Bonds, Auld bace. an. same to be venue code
ofn1986, as dam nded. The Issuering .4 at allal timesVwhilethe
PASSED AND ADOPTED by the City Commission of the City of
Ocoee, Florida, Oa this 31 day mi August, 1990.
ATTEST:
citTi Clerk
(SEAL)
FOR USE AND RELIANCE ONLY
BY THE CITY OF OCOEE,
APPROVED AS TO FORM AND
LEGALITY, this FORM
day of August, 1990
FOLEY 6 LABORER, VAN DEN BERG,
GAY, BURNS, WILSON 6 ARNIN
By:
As .0 Attorney �`•
APPROVED:
CITY OF OCOEE, FLORIDA
aypr
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING HELD
ON Augn.t 3a , 1990
UNDER AGENDA ITEM NO.1 H
RESOLUTION NO. 98-_3
CITY OF OCOEE, FLORIDA
TRANSPORTATION REFUNDING AND IMPROVEMENT REVENUE BONDS
SERIES 1998
Adopted on September 15, 1998
RESOLUTIONNO.98-
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF OCOEE, FLORIDA PROVIDING FOR THE
CONSTRUCTION AND ACQUISITION OF CERTAIN
DIPROVEhMENNfS TO THE TRANSPORTATION SYSTEM OF
THE CITY OF OCOEE, FLORIDA: PROVIDING FOR THE
REFUNDING OF CERTAIN OF THE CITY'S
TRANSPORTATION REFUNDING AND IMPROVENtENT
REVENUE BONDS, SERIES 1990, AUTHORIZING THE
ISSUANCE BY THE CITY OF NOT TO EXCEED 819,500,000
TRANSPORTATION REFUNDING AND WROVEMENT
REVENUE BONDS, SERIES 1998, TO FINANCE THE COST
THEREOF; PLEDGING REVENUES DERIVED FROM THE
LOCAL OPTION GAS TAX, THE PUBLIC SERVICE TAXES
AND CERTAIN EVVESTh1ENT EARNINGS TO SECURE
PAYh4ENT OFTHE PRINCIPAL OF AND INTEREST ON SUCH
SERIFS 1998 BONDS ON PARITY WITH THE CITY'S
OUTSTANDING PARITY BONDS; AMIENDING CERTAIN
TERNS RELATING TO THE RELEASE OF THE LIEN ON THE
PUBLIC SERVICE TAX; AUTHORIZING THE EXECUTION OF
A CONTINUING DISCLOSURE CERTIFICATE; MAKING
CERTAIN COVENANTS AND AGREEMENTS FOR THE
BENEFIT OF THE HOLDERS OF SUCH BONDS; PROVIDING
FOR SEVERABILITY OF INVALID PROVISIONS;
AUTHORIZING THE PREPARATION OF A PRELIMINARY
OFFICIAL STATEMENT; DESIGNATING MBIA INSURANCE
CORPORATION AS THE BOND INSURER FOR THE SERIES
1998 BONDS; PROVIDING FOR THE REPEAL OF ANY
RESOLUTIONS IN CONFLICT WITH THE PROVISIONS OF
THIS RESOLUTIONPROVIDING CERTAIN OTHERMATTERS
IN CONNECTION THEREWITH; AND PROVIDING AN
EFFECTNE DATE.
BE IT RESOLVED BY THE CITY COhAOSSION OF THE CITY OF OCOEE,
FLORIDA
ARTICLE(
GENERAL
SECTION 1.01. Author5ryfarthis Resolution. This Resolummisadoptedpoauant
to the provisions ofthe Constitution ofthe Sure ofFloside. thechan. ofthe City of Ocoee, Chapter
166,PartiLHodd Statutes,R ludon90-08,wamendedandsupplemeawdby R.oludon90-T1
ofthe City of Ocoee, anti other applicable provisions oflaw.
SECTION I.M. Definitions. When used in this Resolution capitalized terms not
otherwise defined shall be as defined in Resclution 90-08, az amended and supplemented by
Resolution 90-11 oftheluuer. andthe Following unm shall have the following meanings, unless the
context deafly otherwise requires.
"Addidovl 1998 Prcjem's1a8 mean me acqui'tiam mftesnuction or reachomaion of rights-
o6way, design, construction, paving and improvemat of eertnm sues, intersections and drainage
improvemenss within and without me corporue emits ofthe Ismer and shall include all property
riyrca e.avma, 6arcM1ises and etryipme a «[ming Nemo and deemed necessary a com miem for
.the construction or acquisition orthe operation thomfwhich is 6runced from the Series 1998 Bond;
as mare My described in me plans on file wits the Issuer.
"Bond Immrer" shall mean with respect to the Seri. 1998 Bonds, MBIA Iruurnmce
Carpoatim, anock imvancecompany.
"Competing Disclosure Certi6ate" shall mean that terrain Continuing Disclosure Certificate
related to the Series INS Bords to be accented by the Hauer prior to the time me Issuer delivers she
Series 1998 Bonds to the underwriter or underwriters, as, it may be amended from time to time m
accordance with the terms thereof, whereby the Issuer undertakes to assist the underwriter or
undavrtitere in complyingwish the consuming disclosure requwanmu ofthe Continuing Disclosure
Rula in substantially me form ..had hereto. Exbilth B.
"Continuing Disclosure RaW shall mean the continuing disdosure replacements of Rule 15c2-
12fm,United Star. Samitim and Exchange Commission .amended.
"Burow Ageni'shell mean. bankwmwst no. or a trust company selmred and named
by one City Manager as a parry to the Estrum Deposit Agreemmt poor to the sale ofthe Sen. 1998
Bond, wge her with any successors and.sigm.
"Escrow Deposit Agreement" shall mon an agreement or agreements by and between the
Iswer and an Borrow Agent, the purpose ofal ich is to provide for the payment of the Refunded
SerinslWOBond. SuchagreerhmtshUbeinwbsta lythefamsatsachedhaeto.ExhibitA
and incorporated herein by reference.
'Muricipal BmW Ino ants Policy- shall mean the municipal bond insuanm policy issued by
the Band Insurer insuring the payment when due of me principal ofand interest on one Series 1998
Band as provided meaty.
"Origml Important- sbae mean Ranhothon No. 90-08 adopted by the City Commission on
August 21, 1990, as supplemented and amended by Rewlution No. 90-11 adopted by one City
Commission on Angus, 3d. 1990.
TABLE OF CONTENTS
ARTICLE
SECTION 2.01.
GENERAL......
_ ...................._ ..............._.................1
SECTION 1.01.
Amhodry for this Resolution .................................. 1
SECTION 1.02.
Cohen..................................................2
SECTION L03.
Resolution to Constitute C . . .......................... .... 3
SECTION 1.04.
Findings. . ... .............. .................... 4
SECTION LOS.
Addmona11998Projecr RefuodiggofRefiudNSe wl990Bonds....5
ARTICLE I
AUTHORIZATION. TERMS. EXECUTION AND REGISTRATION OF
SERIES 1998 BONDS ...................................................... 6
SECTION 2.01.
AUNovation of Series 1998 Bonds, ............................ 6
SECTION 2.02.
Application of Series IWS Bond Proceeds ........................ T
SECTION 2.03
Funds and Amounts Secure Holders Office Series 1998 Bonds;
Reserve Fund; Surety Road..................................8
SECTION 2.04.
Execution of Series 1998 Bonds. ....................... — ..... 8
SECHON2.05.
Authentication . ........ .............. ......... ......... .,.8
SECTION 2.06.
Privilege of Redemption......................................9
SECTION 2, 07.
Fmmof SaicnlW8BOMB...................................9
ARTICLE M
REGISTRAR, PAYING AGENT, INSURER, AND ACCOUNTANT MATTERS ......... 10
SECTION3O1.
Regavarand Paying Agentforthe Series 1998 Bonds, ...,,.._._. 10
SECTION 3O2,
Preparation of Accountant's Calficahe............... .... 10
SECTTON3.03.
Appointment ofBoad Insurer for Series 1998 Bonds, ._........... 10
SECTION 3.04.
Purchase of Bond Insurance and Surety Bond. ................... 10
SECTION3,05.
Terms Regarding Seri. 1998 Bonds In Policycy.................... 11
SECTION 3.06.
Federal Income Tax Cove ents ................... ............ 14
ARTICLE
AMENDMENT TO ORIGINAL INSTRUMENT .................................. 16
SECTION4.01.
Amandment to Origued Instrument. ......... ................. 16
ARTICLE V
MISCELLANEOUS
........................................................ 17
SECTION 5.01.
Preliminary Official Statement . ..................... ...... .... 19
SECTION 5.02.
Continuing lEwlonce....................................... 17
SECTION 5.03.
Sevanabiliry oflmNid Provisions ............................. 17
SECTION 5.04.
Eff.tive Date ............................................ 18
ExhibitA -
Eurow, Deposit Agreement
ExhibitB -
Continuing Disclosure Certificate
E'mithC -
Prelimiwry Official Statement
ExbibilD -
Municipal Bond Insurance Commitment
ExhibitE -
Reserve Fund Guaranty Agreement
"Outstanding Sed. 1990 Bonds" shill mean the portion of the Issuers Transportation
Refund'mg and Improvement Revenue Bonds, gaits IWO. wNch,soon outstanding as Parity Bonds
after the issuance ofthe Seri. 1998 Bonds.
"Parity BOMB" shall mean the Outstanding Series 1990 Bonds.
"Preliminary Official Stamp C shall mean the Prdiminary Official Staremmt relating to the
Series 1998 Bonds attached hereto as Exhibit G
"Refunded Series 1990 Bonds" shall mm the portion of the Issuers Tmnsporromm
Refimding and lmprovernat Revenue Bonds, Series 1990 refunded with the proceeds of the Series
1998 Bonds.
"Reserve Requirement' m with r.par, w the Seri. 1998 Bonds me lesser of (i) the
Maximum Bond Service Requirement. (ii) 125o of the average annual Bond Service Requirement
or (tai) the mmdmum amount as slag tat adversely edea the exdusion of interest on any Bonds from
Federal income tax punposea to the anent the mrerea thereon was intended to be excluded for such
purpmea.
"Series 1998 Bonds" shall mean the Series 1998 Bands, herein authorized to be issud on
parity with the Outstanding Series 1990 Bonds.
"Supplemental 1998 Resolution" shall mean this resolution of the Issuer supplementing the
Ongiml Instmmenr adopted and becoming effective in accordance wits the terns of Section 26(F)
of the Original Instrument,
"Surety Bond" dull mean the surety bond issued by the Bond former for the Series 1998
Banda guaranteeing certain p waterns into the Reserve Amount with reaper to the Series 1998
Bonds as provided therein and subjem w the limitations set forth therein
SECTION 1.03. Resolution to Comtitute Contract. In consideration ofthe purchase
and acceptance ofany or 9 ofNe Series 1998 Bonds by those who shall bold the same from time
to sone, the provisions ofrlis Resolution and the Original Inmvmem shall be deemed to be and shad
comtimre a conmaa between the Issuer aM ma Hapm, from time to time ofthe Series 1998 Bonds.
The pledge made m this Resolution and the Provisions, wveoants and ageemenu beran am fried and
in the Origua lnsuumant to be performed by or on behalf ofthe Issuer shall be for one equal benefit,
protmdon and securitycf me Holders ofany and ill ofoid Senn 1998 Bond. Allofine Series
1998 Bonds, regardless of Ne time or times of New issuance or masonry, shalt be of equal ark
without preference, priority or distinction ofany ofthe Series 1998 Bands over any other thereof
except se expreasly provided in or pursuant to this Resolution
SECTION I.W. Findings. h is hereby e¢amained, determined and declared that:
(A) The iasua owns and maintains certain shears, roads, and associated transportation
facilida within its caryomu limits.
(B) The Issuer deems it necessary, domeen. and in rhe belt interests ofthe Issuer and the
machines thermfthatthe Additional 1998 Project be acquired, co. edand «haw.
(C) The Additional 1998 Projat stall be financed with the proceeds of the Series 1998
Bonds, together with camiv other legdfy available funds ofthe Lauer.
(D) No portion of the Public Service Taxes and Loel Option Gas Tax are pledged or
mmmbered in any manner, except with repent to the payment ofthe Parity Bonds.
(E) In order to preserve and protea the public health, safety and welfare ofthe inhabitants
of the Issue, it is necessary and desirable to acquirt design and construct the Additional 1998
project
(F) The Issuer dams it necessary, beneficial and in its best interest to provide Por the
refunding oftlse Refunded Series 1990 Bonda. Such reWnding will be advanragmus to the Issues
because it will allow the lawn to provide for debt service savings.
(G) The unbound sum required for the refunding ofthe Refunded Bonds will be derived
from a portion of the proceeds of the We of the Series 1998 Bonds, together with certain other
legally available funds ofthe Issues.
(Id) Apon m ofthepmceed ofthe Series 1998 B Ms shalt be deposited wahthe Esaow
AS. pmsuvt ho des Agreement, m amounts which, together was timings thermn, whl be suf thaut
to make rim* payments ofdse interest on and outstanding principal ofthe Refunded Bonds to their
scheduled redemption date. Such foods shall be invested pursuant to the Agreement in such
investments as will be sufc out to pay such principal and intent.
(1) The prindpal of and imeren on the Series 1998 Band all all other payments provided
for in this Rowlutim will be paid solely from the Public Servit. Tata and Local Option Gas Too;
and the M valorem taxing power of the issuer will never be neceary or authorized to pay the
principal a[ premium ifmry, am interest on the Series 1998 Bolls and the Series 1998 Bonds shall
not oomai a him upon any pmpency ofthe tower other than the Pledged Fords.
(I) The Issues adopted this Rewluaon after a public hearing precedM by at leas seven (7)
days notice of the hearing all the proposed action by publication in a newspaper of geveW
cirouWtion in the in accordance with the mquiremmts ofthe Charter of the Issues.
ARTICLE H
AUTHORIZATION, TERMS, EXECUTION
AND REGISTRATION OF SERIES 1998 BONDS
SECEfONL01. Aumorrsaaon of5eria 1998Bond&This Resuhdoa aea[esanisare
of Series 1998 Bonds of the lssuer m be designated a "City of Ocoee, Florida, Transpmronim
Refunding and Improvement Revenue Bonds'. The aggregate principal amomt ofNe Series 19%
BOMBwh hmaybeetewcodadddverdmdathlsR Uo Onshillw[«teed519,500,000. The
Series 1998 Balls arc issued as Additional Parity Obligations on parity wah Parity Bond and are
entitled to the full benefit all security of the Original Instrument as Bond "issued dismantles.
The Sana 1998 Bond shall bear utterer at such rate or rata nos exhaling the maamum
raze permitted by Imv, and shall be payable in lawful money ofthe United States of America on such
down all a determined by supplemental resolution ofthe Iowa. In w evens shill the ore ofirin—
on the Series 1998 Bonds exceed the maximum rate permitted by law.
The Series 1998 BOMB shell be datd such daze; shag be payable a such place or plat mn,, shall
contain such redemption provisions; shall have such Paying Agents all Registrars; shall mature in
such yarn and amounts; shall provide that the proceeds thereof be used in such mama, all as
determined by supplemental resolution ofthe tamer.
The Serie 1998 Bonds shall be issued infinity registered £been without coupons may be issued
as Term and/or Serial Bonds; may be Term Capbal Appreciation Bands and/or Cement Incomes
Bonds; shell be m nsaed wnsewtively from R-1 upward if Current Imaest Bonds; shall be
numbed from CARR -1 upwind if Capitol Appreciation Bonds; shah be in the dmOhwduma of
55,000 each, or integral mdtiples thereof for the Current interest Bonds and in $5,000 maturity
amounts for the Capita Appreciation Boads or in $5,000 multiples thereof or such other
denominations as shah be approved by the Iowa in a supplememel resolution prior to the del[very
.few Serie 1998 Bondi, and shall in. on such does in snob years and ammvrs as will be fixed
by suppl..W tecolodon ofthe Issuer prim to or upon the Bile ofthe Series 1998 Bond
Each Saint 1998 Curran[ interest Bondshah bear interns from the iotere at payment daze oars
preceding the daze on which his mthmtica[ed, udds authenticated on an inessut payment doe, in
which man it shall bar i n oat than such homes payment doe, Or, mit. mtheo[iatd prior to the
first interest payment date, in which case it shall bear interest from its dace; provided, however, that
if on the doe ofembendwdm payment of my interest which is due all payable has not been made,
such Sala 19% Camara tm ass Bond shell bar interestfrom the daze which becomes hes been paid.
Any Series 1998 Capital Appaciation Bonds shdl bass intoes oily in maturity or upon
redanpdm prior to maturity in the amount doamii d by reference to the Compounded Amounts.
fi
1
SECTION 1.05. Addifional 1998 Project; Refunding of Refunded Series 1990
Bond& The Issuer does hereby wtbotim the acquiritioe, consuvction and erection oftbe Addaiond
1998 Project and the refunding ofthe Refunded Serie 1990 Bonds in accordance herewith
The principal ofood the interest all redemption premium, ifany, on the Series 1998 Bonds
shall be payable m any win or curtmry of the United Stites of Amain which on the respective data
ofpaymmm thamfis legal tender for the paymm[ofputili. all private debts. The interest on the
Serie 1998 Current Interest Bond shall be payable "t Paying Agent on ach interest payment
data to the person appearing, irs ofthe fiBemth day ofthe calendar month immediately preadiaq
such interest payment date (the "Record Dare'), on the registration books ofthe I. baeinaRer
provided for in the Holder thereof, by check or dmB mated to such Holdar as his address as it
appears on such registration books or ar doe raryeu and expaue oft registered owns, ofSl,000,000
or mane efSed. 1998 Bands, by who mansfer or other medium acceptable to the Lana all Paying
Agent. Payment ofthe principal of all Series 1998 Ceram[ Interest Bands all the Compounded
Amount with spat on the Saint 1998 Capital Appreciation Bond shall he made upon the pram -
Orion and surtadtt m the office ofthe Paying Agent ofsuch Serie 1998 Bonds m the same shall
became due all payable.
SECTION 2.OL Application of Series 1998 Bond Proceed& Except u otherwise
provided by supplemental resolution ofthe Iowa, the proceed derived from rhe sale ofthe Series
1998 Bond, including awmed interest and pranium, daily, shall, dunulmnmusly with the delivery
ofthe Serie 1998 Bods to she purclumir or purchasers thereof, he applied by rhe Issuer as follows:
(A) Aoaued'utterest,ifavy, shall he deposited m the Interest Account all shall be used oily
for the purpose ofpsy g; the interest which sbell thermals, became due onthe Series 1998 Bonds.
(B) A sufficient amount ofthe Series 1998 Bond proceeds shalt be applied to the pa5'mem
of reasonable and necaary casts and expenses relating to delivery of the Series 1998 Bonds,
including the premium for municipal bond insurance and the Surely Bond on the Bond Insurer.
(C) Unless otherwise provided in a supplanenW rewhmon ofdse Isomer prior to the issuance
ofthe Serie 1998 Bonds, the Reserve Requirement for the Series 1998 Bonds still be established
and deposited in a subawomt in the Reserve Awsom for the benefit ofNe Series 1998 Bond by
doe deposit ofthe Surery, Bond as pemuttd by Section 18 B.(1)(d) ofthe Original Instrument.
legally(D) Awns ns specified by Issues,
my, be us rewlution n din Iowa shall, together wah other
depositing
ing such
funds fmcne,foftlit rr, vestmbe used pr deiate the irefimd i Series 1990 Bono he
depositing tach sumso ant so for investment inappropriatefoods
Acquired Ode, pameons pursuanttothe
Esctow row DeAgreanen[ so u m produce wffiden[ fiends to make all the payments darnbed in
sure Escrow Deposer meemeo.,Athetimeof«nnot appropriate
an dememate
Ismer shall famish to ep Factvw, Agent vested therein hands waco documentation m demonstrate
Sim the sums being deposited and the investment m be mode will be sufficient for such per cww
Simultaneously with the issuance of rhe Series 1998 Hoods, ase Iowa shill enter inns an Bsaow
Deposit Agreement subtill be k p se form and Ver hettro u Exhibit ods o the Escrow Agent.
Such escrowed Emil shill E kept separate all men t from a0 other foods n ed the Iowa and du
mmrys ondeposa mals,rt hi Fpurowed ses f e*gmnm[ scov,D his withdrawn, Ag mud all applied by the
Escrow Agent wlely frrthe purposed xer Eorth in the Escrow Deposer Agreement.
(E) The mo siade, fth. proceeds of0d Series 1998 Bonds a@a providing for the payments
rerl,mci by (A). (B). (C) and (D) above shelf he deposited into the "Gr, of Ocoee Transportation
Refunding and Ina ma ms Revemm Bond Coushatta.. Fund" whieh fund is hereby neared and
established and shelf be used to acquire, conmua and erect the Additional 1996 Project.
SECTION 2.03 Funds and Accounts Secure Holders ofthe Soria 1998 Bonds;
Reserve Fund; Surety Bond. The fads arta aemaa caused purnmeto Section 18 ofthe O i mal
Inam and, shill be for the equal benefit and use of Ne Series 1998 Bonds . Additional Parity
Obb,stioa, provided, however, char the account in the Reserve Account esrablished for a particdar
Series of Bonds solely sauna such Sena ofHonds. The deposits required in Section I8 of the
Original Wwment shall be calwlared commencing with the month in which the Series 1998 Bonds
are delivered to provide for such deposits to reflect the issuance ofthe Series 1998 Bonds.
To she coat funds are deposited in the account ofthe Reserve Account such moneys shall
be inverted in Investment Securities maturing not Inver than the maturity daze of the Soria 1998
Bonds, and such securities shall be valued az cost.
SECTIONtLOi. Execution of Series 1998 Bonds. The Seri. 1998 Bonds shell be
signed by or bear she facsimile sigraturea ofthe Mayor and she Clerk soul a facsimile or an original
impression ofthe official said ofthe Issues shall be imprinted on rhe Santa 1999 Bonds.
In case any officer whose signature or a famic ue of whose signature shall appear on any
Seder 1998 Bond shall case to be such officer before the delivery ofs ich Series 1998 Bond, inch
sigmwre or such facsimile shell nevertheless be valid and sufficient for all purposes the same as ifhe
has remained in office until such delivery. Any Swim 1998 Bond may bear the original or facsimile
signature ofsuch Famous who, on the date ofthe, execution ofsuch Series 1998 Bond, stall be the
proper ofcem to sip such Serie 1998 Bond ahhnugh on the delivery dam ofsuch Series 1998 Bond
such persons may at have been such officers.
SEMON 2.05. Authentication. Only such ofthe Series 1998 Bands as shall have
endorsed thireona certificate ofauthentiation substantially is the form hereurbilow ser forth, duty
executed by the Registrar, a authenticating agent shall be entitled to any benefit or security under
this Resolution and the Original Irumunmt No Series 1998 Bond shall be valid or obligatory for any
purpose unless and until such certificate of authentication shall have been duly executed by the
Business. and such certificate ofthe Registrar upon any such Series 1998 Bond shall be conchnive
evidence than such Series 1998 Bond has been duly authenticated and delivered under this Resolution.
The Regiamr's certificare ofautbentiation on any Series 1998 Bond shaft be deemed in have been
duly executed ifsigned by ma bsedired of ices ofthe Registrar, but it shall nest be necessary, door the
same of car 4, the certificate ofirmhartican.. of al of the Series 1998 Bonds that maybe issued
hereunder int any one time.
ARTICLE III
REGISTRAR, PAMG AGENT, RISUBER,
AND ACCOUNTANT MATTERS
SECTION 3.01. Registrar and Paying Agent for she Series 1998 Bonds. The
Regisater and Paying Agms for the Series 1998 Bonds shell be appointed by the Cry Manager prior
to the iauance of the Sena 1998 Bonds; and he Mayor and the Clerk are hereby authorized to
execwe and deliver on beaff'ofthe Issuer a registrar and paying agency, agreement in a form which
shall be approved by the Issuer's aaam,.
SECTION 3.02. Preparation OrAccoummnt's Certificate Prior o the issuance of
the Series 1998 Bonds, the accounting firm of MCDlrmlt Davi, Iauteria & Co., as independent
.entified public aceoumarrcs stall prepare soul file the ca ificares required by Section 18 D (1) and (2)
ofthe Origial Instrument, in order to issue rhe Series 1998 Bonds an Additional Parity Obligations
under the Original Instrument,
SECTION 3.03. Appointment of Bond Insurer for Series 1998 Bonds. Thailand
Insurer for the Seder 1998 Bonds shill be MBIA Insurance Corporation.
SECTION 3.01. Purchase of Bond bromance and Surety Bond. The purchase ofa
Municipal Bond Insurance Policy From the Bond Insurer m hrevorably guarantor the payment of
principal and inerest on the Seri. 1999 Bonds u hereby authorized in accordance with the terms of
the Commitment far the Munlcipal Bond Iruummce Communes[ attached bound as Exhibit D. the
purchase ofthe Surety Bond from the Bond Insurer is hereby authorised.
The Issuer is hereby authorised and d'nated to purchase a Surer, Bond from the Bond
Lsurer (the "Sorer, Bond') relating to the Series 1998 Bonds to be deposited is time subaccoar of
the Reserve Accost and payment for such Surety Bond to the Bond Insurer is hereby authorized
fiom Sed.1998Bmtdprocc,d,. The issuo hereby authorizes th<mcmtion oRheAeserve Fund
Guaranty Agreement with the Bond Insurer (the "Reserve Ford Alinement-) w the form attached
as ExlnbitE relating to the issuance ofthe Surety Bond for the Raerve Fund in conjunction with the
it. ofthe Series 1998 Bonds and to deliver maid Reserve Fund Agreement to the Band Insure,
and does hereby direct the notation and dehvery of said Reserve Fad ggeemet, All of the
provisions ofsald Reserve Fund Agreement, wind mewled and delivered by the lower as authorized
hands and who ddy authorised, awned and delivered by the Bond Insurer, shall be dated to be
a For ofthis Resolution as fids and to the sane arms 0 ifincorpomted verbatim in the appropdate
sections. The terms and conditions contained in the Original Iratmmee, relating to the surety bond
issued by the Bond Insurer for the Series 1990 Beads, including the provisions of Section ISs(I)(d)
shall also apply to the Surety Bond for the Series 1998 Bonds deposited pursuant to the terms hereof
SECTION 2.06. Privilege ofRedemption. The Issuer shall have the right to redeem
any or ill ofthe Series 1998 Bonds N whole or in part, as shall be determined by supplemental
resolution ofthe Issuer prior in t1ii bounnce ofthe Saida 1998 Bonds.
SECTION 2A7. Form of Series 1998 Bonds. The tea of the Sena 1998 Bonds,
together with the certificate of authentication, shill be ct substantially the form ofthe Series 1990
Bonds as On forth in Section 15 of the original instruments with such omissions, insertions and
variations as may be necessary and/or desirable to raid,, the details of the Series 1998 Bonds as
Additional Parity Obligations and approved by the Mayor prior to the issuance thereof (which
necessity and/or desirability and approval shall be,.edi by the lssuKs dower, ofthe Series 1998
Bonds to the purchaser or purchasers thereof).
9
SECTION 3.05. Terms Regentlau, Series 1998 Bands In Policy. The Is. hereby
aanrs, represents, and aprasly age. to rhe fallowing terms and provisions . such are
necessary and desirable in orderto obtaiv Ne h[uvcipal Bond InsurancePolicy^.
A. Consent of the Bond Insurer. Any provision of chis Remiurian or the Origmd
Inmmmat expressly recognizing or granting rights in or to the Bond Insurer may not be amended
in any mamma which affects the rights of the Bond farmer hereunder without the prior written
consent ofthe Bond Insurer.
B. Comant ofthe Bond Insurer in Addition to Bondholder Consent. Unless otherwise
provided th this Section the Bond Insurefs covsevt shall be requ'vM in addition to Bondholder
consent for the following purposes: (] exewrion and delivery, of any supplemental resolution or our,
amendment, supplement, change to or modification of this Resolution, fill removal of the Paying
Agar and selection and appointment ofay, successor paying agent for the Series 1998 Bonds; and
(ill) initiation or approval of my action not described in f) or @i) above which requires Bondholder
cons I.
C. COnaenr of rhe Bond Insurer'n the Event of fmolvenov. Any reorgumation err
liquidation plan with respect to the Issues rwrt be acceptable ro the Bond Insurer. In the event of
anyS Bondholders
or who
held th rhe Bond Insures shill have doe surer yore Bond
all Series
a daf Bondholders who hold roc Series implicate
Bonds which are insured err the Bond Imarm absent
adefaultby the Bond lavercodathe and deposited
Municipal BondIncarnateFence Policy insuring such
S<ria 1998 Bonds or oda the Surety Bond deposised th the Reserve Fund.
D. Cnnsmt nfthe Bond Insurer Bann Defadr. AnydinginthuResolution tothe cortan-
notwithstanding, upon the occurrence ad continuance of m evas of default . defined in the
Original Iuwmat the Bond Insurer shall be entitled to control and direct the enforcement ofa¢
rights and «media grated to the Serio 1998 Bondholders for the benefit ofthe Soria 1998
Bondholders under this Resolution and Origial Insurance.
E. Notification and Docamerict to be Famished motile the Municipal Bond Laurance
Policy is in effect' the Lzsum shall finish to the Bond Inamer (to the amend.. ofmm Surveillance
Department onlea otherwise indicated) with a copy to Stand ard"& Ponds Rating Services:
B as soon as pracdable after the filing therang a copy ofay financial statement ofthe
Issuer and is copy of any audit and ammal report ofthe Issuer,
(ii) a copy of any, notice to be Swa to the regimaed owners of the Series 1998 Boody
including, without undtation notice ofary redemption or defeasance ofthe Series 1998 Bond, and
ay cenificme rendered purment to this Resolution or relating to the security fir the Soria 1998
Bonds;
(u) such slditioal infommarion it may reasomblyrequest
*91
(v) notice ofany future ofthe Issuer to provide rclevent notices, amii icer a, etc.; end
(v) immediate notification if at any time (a) there are iruudreient moneys to make a%
payments of principal of or interest on the Saba 1998 Bcnd; as required, end (b) upon the
occueence ofavy event ofda wlt.
F. Acc ssm Issuer lnkmaton The Issuer wilt pend[ the Bond Insurer to discuss the
affairs, financing and aaounts of the Issuer or my Information the Bond Insurer may reasonably
request«gatingthes nVri rd Series1998BoM withapproprimeofarsofthe Bruer. The
Issuer mala.,as books
ohaveaccessmthe Series nd1998Projectand to haveaccess
to all makc copies fall books and records reducing Ch the Sed, 1998 BOMB an anY ressowble time.
G. Mala o Direct an Accounting. The Bond Insurer shall have the right to direct to
accounting at the Issuers ex eme,, and the Issuers failure m comply with such d'vection whin thin,
(30) days Under receipt ofwriaen d'nedo [from the Bond banner shall be deemed a default hamomer,
provided, however, that if compfia m, omenta[ occur within such period, then such period will b,
essential w long az complience B begun within such period all diligently pursued, but only ifsuch
extension would not materially adversely affe" the interests ofany regiaaal owner ofthe Series
t998Bonds.
1 Pamem Procedure. As long as me Murkipal Hand lmumma, Policy, shag be in full
force all effect, the Bluer end the Paying Agent ages to comply with the following prowsiom:
(a) At least mm(1)business day prior tondmtaea payment date; the Paying Agent will
detannlne whether there will be sufficient fiords in the fords and accounts to pay the principal ofor
interest on the Series 1998 Bonds on such Us. payment date Ifthe Paying Agent demmuna that
there will be insufficient fords in such funds or encoums, the Paying Agent shall so notify the Bond
Insurer. Such notice shall specify the annum ofthe anncipaal deficiency, the Sena 1995 Bonds
to which such deficiency is applicable end whether such Sena 1998 Bonds will be deficient as to
ptiMipal,MinCwxwt mbctb. The Bond Isconswdl make payments ofprivdpal or mterat due on
the Series 1998 Bonds on Or before the first (Ist) day oat following Ne tae on which the Bond
Inner shag have recdved notct ofnonpayment from the Paying Agent
(b) The Paying Agent shall, after giving nonce to the Bonn Insu ar as prommal in (a)
above, Credits ava8able to the Bond banner and, at the Bond Insurers direction, to the United States
Trutt Company of New York, a inswaom trustee for the Bond Insurer or say successw inswnnce
crushes (the "Inanavce Theses"), the registration books ofthe Issues maintained by the Paying Agent
and all mends .[all., to the funds and accounts maintained under she Original Instrument a flus
Rewlmion.
(c) The Paying Age" shall provide the Bond lwuer all the lmuravice Trusts with a lint
of registered owners ofilaies 1998 Bonds errdal to receive principal or interest payments from the
Bond tn. under the terra ofthe Municipal Bond bawrance POS,, and shad nakc mnangemenn
12
of the Issuer mainrainal by the Paying Agent upon surrealer of the Series 1998 Bands by the
registered owners theraftogerher with proof afam payment ofprincipol thereof.
K. ThBond braw as Tind Pam,, Stadia To the enan that the Raoluton or the
Onghal Instrument confers upon or gives or gents to Ne Bond In. arty right, remedy or dean
under or by reason ofehis Rewludon or the Origirel hom ument the Bond Insurer is hereby akplichly
recognized a being a t u,cl,a t, beneficiary end may endorce say such righu randy or claim
conferred, given or granted
L. Parries Untemad Hatin Nothing in this Resolution or erprsual m implied is
inrendd or shall be comnued to coder upon, or to give or Been[ to, any person or witty, other dao
the Issuer, the Bond losurer, the Paying Agent, and the registered owners ofthe Bonds, my fight
remedy or claim under or by ra non of this Raolution or say covenant Condition or stipulation
herwf, end all Covenants, stipulations, promis, end agreements in this Resolution or the Original
Immanent contained by no on behalfofthe Issuer shall be for the sole all exclusive beast ofthe
Issuer, the Brad Insurer, the Paying Agent and the registered owners ofthe Series 1998 Bonds.
M. Defmsance Provisions. Notwithstanding anything in the Resolution to the Conway,
in the event aha the principal andlor interest due on the Series 1998 Bonds shall be paid by the Bond
Insurer pursuant to the Municipal Bond Insurance Policy, the Series 1998 Bonds shall mina,
Outstanding for all purposes, rot be defessed or otherwise eatiefial all rat be considered paid by
the tanner, end the assignment all pledge ofthe security for she Series 1998 Bonds and all covenants,
ageements all other obligations of the Ismer to the registered owners shall continue to exist all
shill ran In the benefit ofthe Bond Insurer, and the Bond Insurer shall be subrogated to the rights
of such registered owners.
SECTdON 3.06. Federal become Tax Covenants.
(A) The Issuer covenenm with the Holders ofthe Series 1998 Bonds (other then taxable
bonds), tut It shad nor Can the pnoceds ofsah Soria 1998 Bonds rmy mums, which would muse
the interest on such Sana 1998 Bonds to be mbecome includable in the gross income ofthe Holder
thereof for federal income tax purposes.
(B) The Bsuer aw w as with the Holders ofthe Series 1998 Bonds (other then taxable
bonds) that ndther the Issuer we any Penson ender its control or directon will make any use of the
proceeds of the Series 1998 Bonds (or amounts deemed to be proceeds under the Code) in any
marmar which would coo m the Series 1998 Bonds to he "abhrag bonds" within the meaning of
Station 148 offs, Code all neitherthe Issuer nm my other Person shall do any sm or fail to do try
as which would ®use the interew on the Series 1998 Bonds to become includable m the groes
income ofth< Holder thereoffor facet income to purposes.
(C) The Issuer hereby avatars with she Holders ofthe Seder 1995 Honda (other than
taxable bonds) tha itwill complywith all provisions ofthe Code necessary to md"ar the excluton
with the Iedware ,Trustee (l to mail checks or drafts to the registered owners of Series 1998 Bonds
nodded to macive full or partial interest payments from the Bond Insurer end (d) to pay principal
upon Series 1998 Bonds surrendered to the Insurawe Trustee by the registered owners of Seri,
1998 Bonds snared to receive full or parted principal payments from the Bond Insurer.
(d) The Paying Agent shall, u the time it provides notice to the Bond Insurer pursuers
to (a) above, notify reguared owners of Series 1998 Bolls nodded to receive the payment of
principal or marcs[ thereon from the Bond lnsur, () az no the fact ofsuch sa ideme rt. (t) that the
Bond Imurer will tenth as them all ora part Orrin mterat payments next coming due upon proofof
Bondholder eMde"ent to interest payments and delivery to the Insurance Twtee, in kers
sedsfemoryto ase baanance Trvrtw ofe h appropriate andpor rnt ofthe registared owner's rightto
payment, (r') that should theybe entidedto tactics fad paymmn ofprincipal from the Bond Insurer,
they oma surrender then Saba 1998 Bonds (along with an appropriate treatment ofxssig"nce, in
form satisfactory to the Insurance Trustee to permit ownership of such Series 1998 Bonds m be
regiawed in tlrc name ofthe Bond I"urer) kr payment m the Ituurmce Trowee, sod or the Paying
Agent, end (iv) that should they be traded to receive partial payment of principal from the Bond
Inwrer, Met must surrender Nair Sena 1998 Bonds forpayment thereon for m the Paying Agent
who shall note on such Series 1998 Bonds the portion offs, principal paid "0 Paying Agent, if
any, and Nen, along with en appropriate instrument of assignment in form satisfactory to Ne
Insurance Trusses, to the Im"ena Trustee, which will Nen pay the unpaid portion ofprincipel.
(e) In the event that the Paying Agent has notice that say payment of principal of or
interest on a Series 1998 Bond which has become due for payment all which is made to a
Bondholder by or on behalf ofthe Issuer has been deemed a preferential [roofer all theretofore
reawaed from its registered owner pursuant to the United Stora Ba dooptoy Code by a uuaee m
baM'euptey in accordance with the Nal, nonappealable order of a court having compete"
jurballabon, the Paying Agent shall, at the tore the Bond Insure is rmtified pursue" m (a) above,
no*4,go,,n, C. ,w in dens de, enyregboral owadapayment is so removeral, such
registered owner will be enddd to payment from the Bond Inauer to the atent ofsuch recovery if
su9'itient funds we not otherwise available, and the Paying Agan shall WMah to the BOM Irsmer
its records evidencing the payments of principal of end interest on the Seta 1998 Bonds which have
MOM made by the Paying Agent all subsequently recovered from mgbaered owners all the data on
which such payments were made.. -
(t) In eddmou to tense rights Smartest to the Bond lmmtt under this Resoludon end the
Original bovument the Bond banner stall, to the extent it makes payment of principal of or interest
on Series 1998 Bonds, become subrogated to the rights of the recipients of such payments N
scamarm with the terns ofd" bduccipal Bond lmwence Policy, all to evidence such subrogation
(i) in the mss ofsubrogaton as to claims for past due iv[eress, the Paying Agent shall now the Bond
Gasters righa az subrogee an the regismation books offm Issuer mai"arced by the Paying Agent
upon rweipt from the Bond Laurer of Proof of&a payment of interan thereon to the registered
owners of the Series 1998 Boods, and (u) In the case of subrogation a to Claims for pan due
principal, the Paying Agent shall rate ted Bond Insurers rights w wbrogee on the rcgisuation books
13
ofintems, on the Soria 1998 Bonds from the gross income ofthe Holder thereof for federal Income
no, puryosa,including. in particular, the payment ofany amount required m be rebaral to the U.S.
Treasury pursuant to the Code.
ARTICLE TV
AMENDMENT TO ORIGINAL LYSTRIIMENT
SECIIONaAt. Amendment m Origieud fnswmeae Notwhhuandingrheprovisous
of Section 18N, of the Original Batwnmt rhe Issue shall not be entitled to exercise any right to
ree nese the Gen on the Fablie Service Taxes umm or and the Timefs right to levy and receive the
Loral Option Can Tax shall be emended ro.least the mmum, date mali Bonds then outsrmdiag
SECTION 5.01. Effective Date. Tlds Resolution shall take efem immediately upon
imadoption.
DULY ADOPTED this day ofs"Forbar, 1998.
CITY COMMISSION OF THE CITY
OF OCOEE, FLORIDA
(SEAL)
By:
Name M Vavdergrift
Title: Mayoryor
ATTES
By:
Name:] GmRon
Tide:
FOR USE AND RELIANCE ONLY
BY THE CITY OF OCOEE,
APPROVED AS TO FPRV AND
LEGALITY, IRIS _f_j_
DAY OF SEPTEMBER, 1998
FOLEY�(&& LA/RRIDHFR(///
By. 0 J` Q r>nrr/1.d/
Name E
Title: Ciry AFOrmy
APPROVED BYTHE OCOEE CITY
COMIMISSION AT A¢ffETING HELD
ON SEPTEhBER 998 UN
AGENDAITEMNO. YI A
FOR USE a.W RELLURCE OM':
BY TRUE CITY OF OCOEE,
APPROVED AS TO FORK ANO LEGALITY
h1s IT day of Sepeembet, 1998.
BRYMT, MLLM ANO OLIVE, ?.A -
By.
Ctace E. Dunlap
ARTICLE V
iJ.16Ya1.>t�F1T(x4rfY
SECITON5.O1. Preliminary ORcial Statement The preparation oft Pralidemary
Official Stateroom m he form ..had as Exhibit C reining ro rhe Series 1998 Bonds is hereby
authorixd in audit form and substance he shad be approved by the Mayor ofthe, Issuer. The Mayor
and the City Manager me hereby authorized to deem such Preliminary 0&oul Statement as "fired"
bidtin the meaning of Rule 1502-12 ofthc Securities and Exchange Commission, except for cermin
"permitted omissions" u defined in such rule
SECTION 5.O2. Continuing Buttosum The Issuer haneby wvemnta and egrets 6,
is order to timet the underwriter or underwriters in complying with the Continuing Disclosure Rule
with mspem to the Series 1998 Bonds it will comply with and carry out all ofthe provisions ofthe
Continuing Disclosure Cenificare to be executed by the Issuer prior to the time the Lauer delivers
the Series 1998 Bonds to the underwrimr or underwriters, as it may be amended from fine to time
in accordance with the terms thereof. The Continuing l3nolosure Carificate, substantially in the form
attached hereto as Exhibit B. is hereby approved and riddled. Notwithstmding any other provision
ofthis Resolution, failure ofthe Issuer to comply with such Command, Disclosure Certificate shat
not be considered an Event ofDefautt hereunder. However, rhe Conducting Disclosure Certlfiuro
shall be enforceable by the Series 1998 Bondholders in the event that the Issuer fails to core a breach
Hereunder bathed a reasonable time after won= notice hood a Series 1998 Bondholder to the Ismer
that a breach exists. My rights of the Series 1998 Bondholders to mJ.rce the provisions of the
eravt shalt be on behalf.fall Series 1998 BomdhOlders and shall be limited in a righs m obtain
specific performance ofthelasones obligations thereunder.
SECTION 5.03. Severability of Invalid Provisions. II any one m more of the
cwemna,agreememsorproviiemofthis Recohmons beheldconta tomyexpressprovision
of law or comm, to the policy of express law, though not expressly prohibited, or against public
policy, or shall for any reason whddmmnr be held invalid, or shall in an, nmtmer adversely S. the
validity ofthe Series 1998 Bonds, than such cevmams, agreemems or provisions shall be mill and
void and shall be deemed separable from the mmiving coverums, embeemnrs and provisions aftne
Resolution and shall in an way affect the validity of any ofthe other covenants, agreements or
provisions hemofor oftbe Series 1998 Bonds issued hereunder.
V
EXHIBIT
ESCROW DEPOSIT AGREEMENT
f�Xfi1�Yf8
FORK
CERTIFICATE
EX ffD
NRINIMAL BOND LNSLB NCE CONLVQF =
EXMU C
PREL4 MI Y OMC STATEMENT
EX n
RESERVE FUND GUARANTY AGREENMNT
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I:\ IM&D7 VA 11
FORM OF BOND COUNSEL'S LEGAL OPINION
[This page intentionally left blank)
City Commission
City of Ocoee
Ocoee, Florida
[Form of Bond Counsel Opinion]
September . 1998
CITY OF OCOEE, FLORIDA
Transportation Refunding and Improvement Revenue Bonds
Series 1998
Ladies and Gentlemen:
We have acted as bond counsel in connection with the issuance by the City of Ocoee, Florida
(the "City"), of its $ Transportation Refunding and Improvement Revenue Bonds, Series
1998 (the "Series 1998 Bonds"), pursuant to the Constitution and laws of the State of Florida,
Chapter 166, Part II, Florida Statutes, and other applicable provisions of law and Resolution No. 90-
08, adopted by the City Commission of the City on August 21; 1990, as amended and supplemented
by Resolution 90-11 adopted August 30, 1990 and as amended and supplemented by Resolution No.
98-13, adopted by the City Commission of the City on September 15, 1998 (collectively, the
"Resolution"). Any capitalized undefined terms used herein shall have the meaning set forth in the
Resolution.
As to questions of fact material to our opinion, we have relied upon representations of the
City contained in the Resolution and in the certified proceedings and other certifications of public
officials furnished to us, without undertaking to verify the same by independent investigation. We
have not undertaken an independent audit, examination, investigation or inspection of such matters
and have relied solely on the facts, estimates and circumstances described in such proceedings and
certifications. We have assumed the genuineness of signatures on all documents and instruments, the
authenticity of documents submitted as originals and the conformity to originals of documents
submitted as copies.
We have not been engaged or undertaken to review (other than as stated in our supplemental
opinion of even date to the underwriters) the accuracy, completeness or sufficiency of any offering
material relating to the Series 1998 Bonds. This opinion should not be construed as offering material,
an offering circular, prospectus or official statement and is not intended in any way to be a disclosure
statement used in connection with the sale or delivery of the Series 1998 Bonds. Furthermore, we
are not passing on the accuracy or sufficiency of any CUSIP numbers appearing on the Series 1998
Bonds. In addition, we have not been engaged to and, therefore, express no opinion as to compliance
by the City or the underwriter with any federal or state statute, regulation or ruling with respect to
the sale and distribution of the Series 1998 Bonds.
In rendering this opinion, we have examined and relied upon the opinion of even date herewith
of Foley & Lardner, Counsel to the City, as to the due creation and valid existence of the City, the
due adoption of the Resolution, the due authorization,. execution and delivery of the Series 1998
Bonds and the compliance by the City with all conditions contained in the City Charter and ordinances
of the City precedent to the issuance of the Series 1998 Bonds.
Pursuant to the terms, conditions and limitations contained in the Resolution, the City has
reserved the right to issue obligations in the future which shall have a lien on the Pledged Funds equal
to that of the Series 1998 Bonds.
The Series 1998 Bonds do not constitute a general obligation or indebtedness of the City
within the meaning of any constitutional, statutory or other limitation of indebtedness and the holders
thereof shall never have the right to compel the exercise of any ad valorem taxing power of the City
or taxation in any form of any real or personal property for the payment of the principal of or interest
on the Series 1998 Bonds.
The opinions set forth below are expressly limited to, and we opine only with respect to, the
laws of the State of Florida and the federal income tax laws of the United States of America.
Based on our examination, we are of the opinion, as of the date of delivery of and payment
for the Series 1998 Bonds, as follows:
1. The Resolution has been duly adopted by the City and constitutes a valid and binding
obligation of the City enforceable upon the City in accordance with its terms.
2. The Series 1998 Bonds have been duly authorized, executed and delivered by the City and
are valid and binding special obligations of the City enforceable in accordance with their terms,
payable solely from the sources provided therefor in the Resolution on parity with the City's
Transportation Refunding and Improvement Revenue Bonds, Series 1990, remaining outstanding
after the issuance of the Series 1990 Bonds.
3. The Internal Revenue Code of 1986, as amended (the "Code"), establishes certain
requirements which must be met subsequent to the issuance and delivery of the Series 1998 Bonds
in order that interest on the Series 1998 Bonds be and remain excluded from gross income for
purposes of federal income taxation. Non-compliance may cause interest on the Series 1998 Bonds
to be included in federal gross income retroactive to the date of issuance of the Series 1998 Bonds,
regardless of the date on which such non-compliance occurs or is ascertained. The City has
covenanted in the Resolution to comply with such requirements in order to maintain the exclusion
from federal gross income of the interest on the Series 1998 Bonds.
Subject to compliance by the City with the aforementioned covenants, (a) interest on the
Series 1998 Bonds is excluded from gross income for purposes of federal income taxation, and
1
(b) interest on the Series 1998 Bonds is not an item of tax preference for purposes of the federal
alternative minimum tax imposed on individuals and corporations; however, with respect to
corporations (as defined for federal income tax purposes), such interest is taken into account in
determining adjusted current earnings for the purpose of computing the alternative minimum tax
imposed on such corporations. We express no opinion regarding other federal tax consequences aris-
ing with respect to the Series 1998 Bonds.
4. The Series 1998 Bonds are exempt from intangible taxes imposed pursuant to Chapter
199, Florida Statutes.
It is to be understood that the rights of the owners of the Series 1998 Bonds and the
enforceability thereof may be subject to the exercise of judicial discretion in accordance with general
principles of equity, to the valid exercise of the sovereign police powers of the State of Florida and
of the constitutional powers of the United States of America and to bankruptcy, insolvency,
reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter
enacted.
Our opinions expressed herein are predicated upon present law, facts and circumstances, and
we assume no affirmative obligation to update the opinions expressed herein if such laws, facts or
circumstances change after the date hereof.
Very truly yours,
BRYANT, MILLER AND OLIVE, P.A.
19BONM42MCOPN
Sep ba 22, 1996
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APPENDIX E
FORM OF CONTINUING DISCLOSURE CERTIFICATE
[This page intentionally left blank]
F41-9-9 WN
CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and
delivered by the City of Ocoee, Florida (the "City") in connection with the issuance of its $
Transportation Refunding and Improvement Revenue Bonds, Series 1998 (the "Series 1998 Bonds").
The Series 1998 Bonds are being issued pursuant to the City's Resolution No. 90-08, adopted by the
City Commission of the City on August 21, 1990, as amended and supplemented by Resolution No.
98-13, adopted by the City Commission of the City on September 15, 1998 (collectively, the
"Resolution"). The City covenants and agrees as follows:
SECTION 1. PURPOSE OF DISCLOSURE CERTIFICATE. This Disclosure
Certificate is being executed and delivered by the City for the benefit of the Series 1998 Bondholders
and in order to assist the original underwriter of the Series 1990 Bonds in complying with Rule 15c2 -
12(b)(5) promulgated by the Securities and Exchange Commission ("SEC") pursuant to the
Securities Exchange Act of 1934 (the "Rule").
SECTION 2. PROVISION OF ANNUAL INFORMATION. Except as otherwise
provided herein, the City shall provide to all of the nationally recognized municipal securities
information repositories described in Section 4 hereof (the "NRMSIRs"), and to any state
information depository that is established within the State of Florida (the "SID") on or before
April 30 of each year, commencing April 30, 1999, the information set forth below in this Section 2.
Notwithstanding the immediately preceding sentence, to the extent any such information does not
become available to the City before on April 30 of any year, the City shall provide such information
when it becomes available, but no later than one year following the end of the City's Fiscal Year.
(A) the City's Comprehensive Annual Financial Report for the immediately preceding
Fiscal Year (the "CAFR"), which shall include the audited financial statements of the City for the
immediately preceding Fiscal Year prepared in accordance with Generally Accepted Accounting
Principles, as modified by applicable State of Florida requirements and the governmental accounting
standards promulgated by the Government Accounting Standards Board; provided, however, if the
audited financial statements of the City are not completed prior to on April 30 of any year, the City
shall provide unaudited financial statements on such date and shall provide the audited financial
statements within 30 days of the completion of such audited financial statements; and
(B) to the extent not set forth in the CAM additional financial information and operating
data of the type included with respect to the City in the final official statement prepared in
connection with the sale and issuance of the Series 1998 Bonds (as amended, the "Official
Statement"), as set forth below:
E-1
1. Updates of information set forth in the following subsections of the section
of the Official Statement captioned "SECURITY AND SOURCES OF PAYMENT FOR
THE SERIES 1998 BONDS - Local Option Gas Tax," "- Public Service Taxes," and
"- Historical and Projected Coverage of the Maximum Bond Service Requirement."
2. Description of any indebtedness payable in whole or in part from the Pledged
Funds (as defined in the Official Statement).
3. Description of any material litigation which would have been disclosed in the
Official Statement if such litigation had occurred and been ongoing at the time the Official
Statement is dated.
4. Any other financial information or operating data of the type included in the
Official Statement which would be material to a holder or prospective holders of the Series
1998 Bonds.
For purposes of this Disclosure Certificate, "Fiscal Year" means the period commencing on
October I and ending on September 30 of the next succeeding year, or such other period of time
provided by applicable law.
SECTION 3. REPORTING SIGNIFICANT EVENTS. The City shall provide to the
NRMSIRs or the Municipal Securities Rulemaking Board (the "MSRB") and to the SID, on a timely
basis, notice of any of the following events, if such event is material with respect to the Series 1998
Bonds or the City's ability to satisfy its payment obligations with respect to the Series 1998 Bonds:
Bonds;
(A) Principal and interest payment delinquencies;
(B) Non-payment related defaults;
(C) Unscheduled draws on the debt service reserve fund reflecting financial difficulties;
(D) Unscheduled draws on credit enhancement reflecting financial difficulties;
(E) Substitution of credit or liquidity providers, or their failure to perform;
(F) Adverse tax opinions or events affecting the tax-exempt status of the Series 1998
(G) Modifications to rights of Series 1998 Bondholders;
(II) Calls on the Series 1998 Bonds;
(I) Defeasance of the Series 1998 Bonds;
E-2
Bonds;
(J) Release, substitution, or sale of property securing repayment of the Series 1998
(K) Rating changes; and
(L) Notice of any failure on the part of the City or any other Obligated Person (as defined
herein) to meet the requirements of Section 2 hereof.
The City may from time to time, in its discretion, choose to provide notice of the occurrence
of certain other events, in addition to those listed in this Section 3, if, in the judgment of the City,
such other events are material with respect to the Series 1998 Bonds, but the City does not
specifically undertake to commit to provide any such additional notice of the occurrence of any
material event except those events listed above.
Whenever the City obtains knowledge of the occurrence of a significant event described in
this Section 3, the City shall as soon as possible determine if such event would be material under
applicable federal securities law to holders of Series 1998 Bonds, vrovided, that any event under
clauses (D), (E), (F), (K) or (L) above will always be deemed to be material.
SECTION 4. NRMSM. The NRMSIRs to which the City shall provide the information
described in Sections 2 and 3 above, to the extent required, shall be the following organizations, their
successors and assigns:
(A) Bloomberg Municipal Repository
P.O. Box 840
Princeton, New Jersey 08542-0840
Phone: 609/279-3200
Fax: 609/279-5962
(B) Thomson NRMSIR
Attn: Municipal Disclosure
395 Hudson Street, 3rd Floor
New York, New York 10014
Phone: 212/807-5001
Fax: 212/989-2078
(C) Disclosure, Inc.
5161 River Road
Bethesda, Maryland 20816
Attn: Document Acquisitions/Municipal Securities
Phone: 301/951-1450 (City -related questions)
800/638-8241 (for purchase of documents)
Fax: 301/718-2329
E-3
(D) Moody's NRMSIR
Public Finance Information Center
99 Church Street
New York, New York 10007
Phone: 212/553-0300
Fax : 212/553-1460
(E) Kenny Information Systems, Inc.
65 Broadway, 16th Floor
New York, New York 10006
Phone: 212/770-4595
Fax: 212/797-7994
(F) Donnelley Financial
Municipal Securities Disclosure Archive
559 Main Street
Hudson, Massachusetts 01749
Phone: 800/580-3670
Fax: 508/562-1969
(G) Any NRMSIRs that are established subsequently and approved by the SEC.
(II) A list of the names and addresses of all designated NRMSIRs as of any date may
currently be obtained by calling the SEC's Fax on Demand Service at 202/942-8088 and requesting
document number 0206.
SECTION 5. NO EVENT OF DEFAULT. Notwithstanding any other provision in the
Resolution to the contrary, failure of the City to comply with the provisions of this Disclosure
Certificate shall not be considered an event of default under the Resolution; provided, however, any
Series 1998 Bondholder may take such actions as may be necessary and appropriate, including
pursuing an action for mandamus or specific performance, as applicable, by court order, to cause the
City to comply with its obligations hereunder. For purposes of this Disclosure Certificate, "Series
1998 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 1998 Bonds (including persons
holding Series 1998 Bonds through nominees, depositories or other intermediaries), or (B) is treated
as the owner of any Series 1998 Bond for federal income tax purposes. It is the City's intent that
specific performance be the sole remedy for an event of default under this Disclosure Certificate.
SECTION 6. INCORPORATION BY REFERENCE Any or all of the information
required herein to be disclosed may be incorporated by reference from other documents, including
official statements or debt issues of the City of related public entities, which have been submitted
to each of the NRMSIRs and the SID, if any, or the SEC. If the document incorporated by reference
E-4
CRY OF OCOEE, FLORIDA
COMBINING STATEMENT OF CASH RAINS
ALL ENTERPRISE RINDS
FOR THE YEAR ENDED SEPTEMBER 30. 1997
-64-
Recoccii Operating IncConhe (Lots) To No
Cash PrwideU By Operating Amvties:
Operadrlg thcrmne (fie)
Adjustments Not Affecting Cash:
Depreciation
Amortization
Provision For Uncollectible Accounts
Charge In Assets And L.iabli ies:
(Increase) Decrease In Accounts Receivable
Increase (Decrease) In Accounts Payable
Increase (Decrease)In Accrued Expenses
Increase (Decrease) In Retainage Payable
Increase (Decrease) In Deferred Revenue
Increase (Decrease) In Customer Deposits
Total A*mtmerts
Net Cash PmxW By Opemung Actwttes
Noncash Investing, Capital And Financa g Activtius:
Contributed Property, Plant, And Equip ant
Write Off Capital Contributions Billed in Prior Year
Increase (Decrease) in the Fair Value of Investments
4i5-
Total
Weser and Epp-
Wastewater Solid Waste Funds
$ 99.319 $ 121868 $ 221,177
1,306,870
201,955
1,508,825
Total
-
Water and
5,500
Enterprise
9,500
Wastewater
Sold Wave
Funds
Cash Flaws From Operating Activities:
865)
(13,9
182,667
27,064
Receipts From Customers
$ 4,011,160
$ 1,227,336
$ 5,238,496
Payments To Suppliers
(949,141)
(624,542)
(1,473,683)
Payments To Employees
114877131
(401.7621
(18894751
Net Cash Pmvided By Operating AUN9M
1,574,306
301,032
1.875.338
Cash Flows From Noncap'val
Financing Activities:
Net Operating Transfers In (Out)
(602,692)
(125,967)
(728,559)
Receipts From Granas
-
24,267
24,267
Increase (Decrease) Due To Other Funds
(1,515
20.610
19.095
Net Cash Used In Noncappy Financing AcMides
(604 107)
(81.1)9ltt
(685.1971
Cash Flows From Capital And Related Fnanang Am ItIoX
Proceeds From Sale of Property and Equipment
87,630
-
07.E
Purchase Of Property, Plana And Equipment
(190,630)
(143,290)
(333,920)
Additions to Construction in Progress
(1,298,658)
-
(1,296,658)
Principal Paid On Bonds and Leases
(212,532)
(88,013)
(=545)
Interest Paid On Bonds and Leases
(567,681)
(10,633)
(578,314)
Proceeds from Bonds and Capital Leases
10,019,878
119,299
10,139,177
Capital Contributions
114,180
-
114,180
Cash Received On Assessments Receivable
60,518
-
60,516
Bond Issue Costs Paid
(304.98T
-
(304.9871
Net Cash Provided By (Used In) Capital And
Reed Firw"V Actllllee
7,709,718
12263
7.587.081
Cash Flows From Investing ActivOes:
487,200
50,000
537,200
Sale Of Investments
Purchase Of Investments
(7,705,920)
-
(7,705,920)
Investment Income
614,387
9.477
523,864
Net Cali Provided By (Used tin) In Investing Acuvties
(6,704,
59.477
(6 tWI 8561
Net increase (Decease) In Cash And Cash EqutMWU
1,975,584
156,782
2,132,366
Cash And Cash EcIt"alerts At Begvrwg Of Year
2,269,
72.011
2,341.37
Cash And Cash Equivalents At End Of Year
4,244,947
$ 228.793
$ 4,473,740
ClassTied As:
Current Assets
$ 611,955
$ 132,850
$ 744,805
Restricted Assets
3.632.992
95.943
3,728,935
Tcty
4,244,947
$ 228.793
$ 4,473,740
-64-
Recoccii Operating IncConhe (Lots) To No
Cash PrwideU By Operating Amvties:
Operadrlg thcrmne (fie)
Adjustments Not Affecting Cash:
Depreciation
Amortization
Provision For Uncollectible Accounts
Charge In Assets And L.iabli ies:
(Increase) Decrease In Accounts Receivable
Increase (Decrease) In Accounts Payable
Increase (Decrease)In Accrued Expenses
Increase (Decrease) In Retainage Payable
Increase (Decrease) In Deferred Revenue
Increase (Decrease) In Customer Deposits
Total A*mtmerts
Net Cash PmxW By Opemung Actwttes
Noncash Investing, Capital And Financa g Activtius:
Contributed Property, Plant, And Equip ant
Write Off Capital Contributions Billed in Prior Year
Increase (Decrease) in the Fair Value of Investments
4i5-
Total
Weser and Epp-
Wastewater Solid Waste Funds
$ 99.319 $ 121868 $ 221,177
1,306,870
201,955
1,508,825
22,562
-
22,562
5,500
4,000
9,500
(19,657)
59)
)
1 96,532
865)
(13,9
182,667
27,064
3,043
30,107
(64,062)
-
(64,x)
(6,724)
-
(6,724)
6.902
-
6.902
1.474.987
179,174
1,654,161
1574306
$ 301,032
1875338
$ 684,610 $ - $ 684,610
(268,762) - (268,782)
342.621 (3811 342.240
$ 758.449 361) $ 750.068
TRUST AND AGENCY FUNDS
Expendable and Pension Trust Funds are used to account for assets held by the City in a
fiduciary capacity for individuals, governmental entities and others. Such trust funds are operated
by carrying out specific terms of trust indentures, statutes, ordinances, grant requirements, or
other governing regulations. The Agency Funds are used to account for assets held by the City
as agent for City employees.
1711W, M-1
Pension Trust Funds
General Employees
Police and
Firefighters
Agency Funds
Deferred Compensation
Plan
- Accounts for the accumulation of resources to be used for
retirement annuity payments at appropriate amounts and
times in the future for employees of the City, except police
officers and firefighters.
Accounts for the accumulation of resources to be used for
retirement annuities of all police officers and firefighters. The
State contributes funds based upon the number of police
officers and firefighters and the City and employees contribute
the balance as determined by an actuarial study.
Accounts for the accumulation of resources to be used for
retirement payments at appropriate amounts and times in the
future for employees of the City In accordance with the
provisions of Internal Revenue Code Section 457.
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Ocoee
o
a
rf�F4
OF 0000
Assets
Cash And Cash
Equivalents
Investments
Receivables - Net
Due From Other Funds
Total Assets
Liabiffies And Fund
Balance
Liabilities
Due To Other Funds
Deferred Compensation
Payable
Total Liabilities
Fund Balances
Reserved For Employees'
Pension Benefits
Total Fund Balances
Total Liabilities And
Fund Balances
CITY OF OCOEE, FLORIDA
COMBINING BALANCE SHEET
TRUST AND AGENCY FUNDS
SEPTEMBER 30, 1997
Trust Funds
Aaenw Fund
Pension
- Deferred
Trust
Compensation
Funds
Plan Totals
$ 21,486
$ --- $ 21,486
7,661,477
1,092,244 8,753,721
100,189
--- 100,189
122
122
$ 7,783.274
$ 1.092,244 $ 8.875,518
$ 122 $ --- $ 122
1,092,244 1,092,244
122
1,092,244 1,092,366
7 783.152 7,783.15
7,783.15 - 7.783.152
$ 7,783.274 $ 1,092.244 $ 8.875,518
-66-
CITY OF OCOEE, FLORIDA
COMBINING STATEMENT OF PENSION FUND NET ASSETS
SEPTEMBER 30, 1997
Assets
Cash and Short -Term Investments
Receivables -
Employer Contribution
Employee Contribution
Due From Other Funds
1 •, - Gam.--_•'- - •�_-
Investments. at Fair Value
Commingled Bank Bond Fund
Commingled Bank Stock Fund
Total Investments
Total Assets
Liabilities
Due To Other Funds
Net Assets Held in Trust for
Pension Benefits (A schedule
of funding progress for each
Plan is presented on page 33)
Pension Trust Funds
General Police And
Employees Fvefiahters Totals
$
8.93 $ 12.55 $ 21,48
31,799
43,345
75,144
13,997
11,048
25,045
122
122
45,7
54,515
100.311
1,554,204
1,844,379
3,398,583
1,951,144
2,311.7
4,262,894
3,505,348
4,156,129
7,661,477
3,560,074
4,223,200
7,783,274
122
122
$ 3.559.952 4,223.2 $ 7.783.152
-67-
CITY OF OCOEE, FLORIDA
COMBINING STATEMENT OF CHANGES IN PENSION FUND
NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 1997
Additions
Contributions
Employer
State
Plan Members
Total Contributions
kwesuTwd kKx me
Not Appreciation in Fair Value
Investments
Interest
Less Investment Expense
Net Invest n X1t Income
Total Additions
Deductions
Benefits
Administrative Expenses
Total Deductions
Net Increase
Net Assets Held In Tnust for Pension Benefits
Begiryurng Of Year -
As Previously Reported
Prior Period Adjustment
As Restated
Pension Trust Funds
General Police And
Employees Firefiaftters Totals
$ 381,590
$ 520,140
$ 901,730
—
85,820
85,820
181.606
138.422
320.028
563.196
744.382
1.307.578
573,683
697,368
1,271,051
40.157
15.699
55.856
613,840
713,067
1,326,907
(20.7251
(24.7101
(45.4351
593.115
688.357
1.281.472
1156.311
1.432.739
2.589.050
50,544
72,293
122,837
17.458
15.558
33.016
68.002
87.851
155.853
1,088,309
1,344,888
2,433,197
2,027,266
2,350,264
4,377,530
444.377
528.048
972.425
2.471.643
2.878.312
5.349.955
End Of Year $ 3,559,952 $4,223,200 $ 7,783.152
al -i
CITY OF OCOEE, FLORIDA
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
FOR THE YEAR ENDED SEPTEMBER 30.1997
Balance Balance
October 1, September 30,
1996 Additions Deductions 1997
Deferred Compensation
Assets:
Investments 801,305 $ 307.339 $ 16.400 $ 1.092.244
� LlaWlities:
Deferred Compensation
Payable $ 801,305 $ 307.339 $ 16.400 $ 1.092,244
ACCOUNT GROUPS
General Fixed Assets
Account Group - To account for all fixed assets of the City, other than those
accounted for in the Enterprise Funds.
CRY OF OCOEE, FLORIDA
SCHEDULE OF GENEML FIXED ASSE75 -13Y FUNCTION AND ACTIVITY
FOR THE YEAR ENDED SEPTEMBER 30, 1997
Total3$ ,277,4665s ,294,774 159378116$ 25.370 $11.791,391
General
Public Physical
Deletions
Culture
And
General Government
$ 3,004,776 $
(33CY ncvt
Safety Environment
Redoab°r1
Public Safety
Total
Lane
$ 153,792 $
188,621 $
613,099 $
357,371
$ 1,312,883
Buildings
1,972,541
1,214,108
262
286,188
3,473,099
Improvements
253,072
62,909
59,058
599,718
974,757
Equipment
881,145
2,938,295
905,234
282,341
5,009,015
Conslruction In Progress
16916
890,841
14.128
99.752
1,021,637
Total3$ ,277,4665s ,294,774 159378116$ 25.370 $11.791,391
Total9$ ,904,184 $2,156502$ 69.295 $11,791MI
-70-
Balance
1001-96 Additions
Deletions
Balance
0930-97
General Government
$ 3,004,776 $
274,555 $
18,781
$ 3,260,560
Public Safety
4,047,469
496,623
140,159
4,403,933
Physical Environment
1,479,425
205,883
105,655
1,579,653
Culture & Recreation
1,340,161
185,457
—
1,625,618
Construction in Progress
32.353
993.984
4.700
1,021,637
Total9$ ,904,184 $2,156502$ 69.295 $11,791MI
-70-
SUPPLEMENTARY INFORMATION
Supplementary information is presented to provide greater detailed infor-
mation deemed useful for clarity. it is not necessary for presentation in
conformity with generally accepting accounting principles.
This page intentionally left blank.
Ocoee
0
o -
v � o
4 a°
�i
fq
OF G 000 �`
CITY OF OCOEE, FLORIDA
SCHEDULE OF REVENUES AND EXPENSES - BUDGET AND ACTUAL
WATER AND WASTEWATER O & M DEPARTMENT
FOR THE YEAR ENDED SEPTEMBER 30, 1997
CRY OF OCOEE, FLORIDA
SCHEDULE OF REVENUES AND EXPENSES - BUDGET AND ACTUAL
SOLID WASTE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 1997
(1) This schedule only reflects receipts and disbursements from operating accounts and not
capital improvement funds.
-71- -72-
Variance
Variance
Favorable
Favorable
Budget
Actual
(Unfavorable)
Budget
Actual
(Unfavorable)
Operating Revenues
Operating Revenues
User Charges
$3,903.30
$4,030,639
$ 127.339
User Charges
$ 1.215.000
$ 1,243.29
$ 28.295
Nonoperating Revenues
Nonoperating Revenues
Interest Revenues
118,000
170,024
52,024
Interest Revenues
4,000
9,096
5,096
Miscellaneous
879,100
---
(879,100)
Operating Transfers in
5,000
6,807
1,807
Operating Transfers In
5,500
46,369
40,869
Recycling Grant
22.000
29.000
7.000
Retained Earnings Allocation
900.000
(900.0001
i
31.000
44.903
13.903
1 902 600
216.393
(1.666.207)
Total Revenues
$ 1.248.000
$ 1.288.198
$ 42.198 -
Total Revenues
$5,805,900
$4,247,032
$ (1.558.8681
Operating Expenses
Outing Expenses
Personal Services
$ 429,320
$ 404,805
$ 24,515
Personal Services
$ 1,551,569
$ 1,445,477
$ 106,092
Materials And Supplies
320,027
359,960
(39,933)
Materials And Supplies
423,725
381,366
42,359
Other Expenses
159,310
148,978
10,332
Heat, Ught And Power
330,000
340,850
(10,850)
Recycling Expenses
22,000
5,739
16,261
Other Expenses
330,041
242,725
87,316
Reserve for Contingency
_ 54,903
54.903
Reserve for Contingency
489.431
-
489.431
965.560
919.482
66.078
3.124.766
2.410.418
714,348
Nonoperating Expenses
Nonoperating Expenses
Operating Transfers Out
157,750
169,957
(12,207)
Operating Transfers Out
1,612,600
1,568,433
44,167
Capital Outlay
30,580
30,566
14
Loss On Sale Of Fixed Assets
---
68,724
(68,724)
Capital Lease Payments
72.110
72.108
2
Capital Outlay
Interest Expense
1,064,534
4.000
565,630
9.071
498,904
(5071)
260.440
272.631
(12.1911
2.681.134
2.211.858
469.276
Total Expenses
1,246,000
1 192 113
$ 53.887
Total Expenses
$ 5.805,900
$ 4,622.276
$ 1,183.624
(1) This schedule only reflects receipts and disbursements from operating accounts and not
capital improvement funds.
-71- -72-
STATISTICAL SECTION
The statistical schedules differ from other financial statement presenta-
tions because they generally disclose more than one fiscal year and may
present non -accounting data, such as social and economic data and
financial trends of the City.
STATISTICAL SECTION
LIST OF SCHEDULES
General Governmental Expenditures and Other Financing Uses
General Governmental Revenues and Other Financing Sources
Tax Revenues by Source
Property Tax Levies and Collections
Assessed and Estimated Value of Taxable Property Net of Exemptions
Property Tax Rates and Tax Levies Direct and Overlapping Governments
Special Assessment Collections
Ratio of Net General Obligation Bonded Debt to Assessed Value and Net Bonded Debt per
Capita
Legal Debt Margin
Computation of Direct and Overlapping General Obligation Debt
Ratio of Annual Debt Service Expenditirres for General Obligation Bonded Debt to Total
General Governmental Expenditures and Other Uses
Revenue Bond Coverage
Demographic Statistics
Property Value, Construction and Bank Deposits
Schedule of Ten Largest Taxpayers
Miscellaneous Statistical Data
Schedule of Insurance in Force
CRY OF OCOEE, FLORIDA
GENERAL GOVERNMENTAL BXPENDr
AND OTHER FINANCING USES
LAST TEN FISCAL YEARS
Find
Total
General
Public
Physf
Culture And
Debt
Transfers To
Year
Ebmendsuras
%
%
Safety
%
amtroranert
%
Recreation
%
Service
%
Other Funds
%
1988
$ 3,838,373
100.0
$1,113,825
29.0
$2,016,496
62.5
$ 262,939
6.9
$ 166,532
4.3
-
-
$ 278,581
7.3
1989
3,748,802
100.0
953,004
25.4
1,953,951
52.2
271,390
72
175,643
4.7
-
-
396,814
10.5
1990
5,060,097
100.0
1,478,026
29.2
2,600,066
51.4
565,066
11.2
202,206
4.0
-
-
214,733
4.2
1991
6,295,025
100.0
1,877,608
29.8
2,823,667
44.9
744,722
11,8
167,749
2.7
-
-
681,279
10.8
1992
6,335,748
100.0
1,623,768
24.1
2,968,180
46.8
706,974
11.1
152,762
2.4
41,626
.7
942,438
14.9
1993
6,671,716
100.0
1,599,429
24.0
3,404,218
51.0
899,542
i 13.5
179,232
27
79,723
1.2
509,572
7.6
1994
8,629,065
100.0
1,705,399
19.7
4,253,374
49.3
1,103,372
12.8
325,331
3.8
156,509
1.8
1,085,080
126
1995
8,808,659
100.0
1,912088
21.7
4,373,302
49.7
1,125,206
128
319,341
3.6
159,526
1.8
919,196
10,4
1996
9,362,905
_ 100.0
1,907,097
20.3
4,689,003
60.1
1,151,049
123
417,495
4.5
133,416
1.4
1,064,845
11.4
1997
11,217,057
100.0
2,432,702
21.7
5,826,668
51.9
1,162,242
10.4
466,593
4.2
339,375
3.0
989,477
8.8
w This schedule Includes expenditures of the General Fund only.
M Beginning 1992, debt service on capital leases was reported as an expenditure of the General Fund Prior
to 1992, these debt service amounts were transtened to the Debt Service Fund and feported as an
expenditure in the Debt Service Fund.
-73- -74-
CRY OF OCOEE, FLORIDA
GENERAL GOVERNMENTAL REVENUES
AND OTHER FINANCING SOURCES
LAST TEN FISCAL YEARS
I4 This schedule Includes revenues of the General Fund only.
mI Other financing sources for 1995 Includes a residual equity transfer of $53,640.
Erns And
InvestrnalR
%
Licenses
%
Inter-
1.7
Charges
Fiscal
Total »
1.6
105,894
2.7
And
1.3
GovenunenW
21
For
Year
Revenues
%
Tares
%
Permits
%
Revenues
_6%
s
1988
$ 3,200,750
100.0
$1,362,805
42.6
$ 137,009
4.3
$ 1,300,030
40.6
$ 54,479
1989
3,957,983
100.0
1,508,606
38.1
227,241
5.7
1,685,641
42.6
65,087
1990
5,027,968
100.0
1,967,285
39.1
591,160
11.8
1,890,285
37.6
65,231
1991
5,845,228
100.0
2,328,029
39.8
587,064
10.0
1,844,812
31.7
94690
1992
6,981,337
100.0
2,631,241
37.7
488,522
7.0
1,967,790
28.2
76,923
1993
7,161,664
100.0
3,018,139
421
612,036
8.5
2,216,879
31.0
83404
1994
8,416,346
100.0
3,466,712
41.2
683,191
7.9
2,316.066
27.5
95,109
1995
8,992,823
100.0
3,819,210
425
634,263
7.0
2,684,446
29.9
138,481
1996
10,263,930
100.0
4,269,994
41.6
850,427
8.3
3,088,521
30.1
186,163
1997
11,744,062
100.0
4,966,592
42.3
879,650
7.5
3,368,182
28.7
208,119
I4 This schedule Includes revenues of the General Fund only.
mI Other financing sources for 1995 Includes a residual equity transfer of $53,640.
-75- -76
Erns And
InvestrnalR
%
For(e8rues
%
Income
1.7
$ 103,316
3.2
$ 24,428
1.6
105,894
2.7
6,920
1.3
105,927
21
17,097
1.6
81,615
1.4
7,825
1.1
97,184
1.4
11,045
1.2
83,583
1.2
28,338
1.1
102,024
1.2
29,651
1.5
93,007
1.0
9,329
1.8
101,895
1.0
89,666
1.8
75,483
.6
146,357
-75- -76
Misc.
Other
FYwrdng
%
Rwmue
_ %
Sauces
%
.8
$63,518
1.7
$ 165,165
5.1
.2
104,779
27
253,815
6.4
.3
98,723
20
291,260
5.8
.1
18,395
.3
882,798
15.1
.2
165,148
2.3
1,543,464
22.1
.4
64,096
.9
1,055,188
14.7
.4
84,520
1.0
1,660,183
19.7
.1
79,007
.9
1,535,080
17.1
.9
108,379
1.0
1,668,885
15.3
1.2
163,504
1.4
1,936,175
16.5
CITY OF OCOFE, FLORIDA
TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
CITY OF OCOEE, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
REAL AND BUSINESS TANGIBLE PERSONAL PROPERTY
LAST TEN FISCAL YEARS
-77- -78-
Pementa9a
Fiscal
Property
Frandilse
Utility
Total
Total
Total
Of Taal Col.
Year
Taxes
Tates
Taxes
Tates
Fiscal
Talc
Tac
leaiors To
Year
Low
Collections
DefeguerR
Tax Law
1988
$ 471,349
$ 335,969
$ 555,487
$1,362,805
1988
$ 490,488
$ 471,349
$ 51228
96.10
1989
567,410
353,007
588,189
1,508,606
1989
588,036
567,410
3,279
96.49
1990
844,080
433,529
689,676
1,967,285
1990
847,080
844,080
3,000
99.65
1991
1,061,160
498,617
768,252
2,328,029
1991
1,064,847
1,061,160
3,687
99.65
1992
1,295,309
571,072
764,860
2,631,241
1992
1,338,563
1,295,309
4,745
96.77
1993
1,455,968
666,811
895,360
3,016,139
1993
1,503,231
1,455,968
4,941
98.86
1994
1,647,742
777,783
1,041,187
3,466,712
1994
1,697,751
1,647,742
1,753
97.05
1995
1,803,405
856,678
1,159,127
3,819,210
7999
1,e77,240
1,60.3,405
-
96.07
1996
1,953,410
969,107
1,347,477
4,269,994
i
1996
2,022,628
.1,953,410
-
96.50
1997
2,243,488
1,145,834
1,577,270
4,966,692
1997
2,329,421
2,243,488
1,388
96.31
-77- -78-
Fiscal
Year
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
CRY OF OCOEE, FLORIDA
ASSESSED AND ESTIMATED VALUE OF TAXABLE PROPERTY
NET OF EXEMPTIONS
LAST TEN FISCAL YEARS
Real PromdY
38,727,447
_
Ferimaal
Age
Value
Actual Value
$126,876,147
$126,876,147
180,610,206
180,610,206
198,284,327
198,284,327
249,015,145
249,015,145
305,993,279
305,993,279
343180,649
343,180,649
369,507,198
389,507,198
430,582,556
4304682,556
463,889,629
463,889,629
541,006,278
641,006,278
-79-
... Personal Pro0erty
38,727,447
Assrssed
Esdr=od
Value
Actual Value
$ 12,708,713
$ 22,437,700
16,583,819
30,300,000
20,307,367
36,922,000
24,635,177
38,185,000
28,647,558
44,762,000
32,627,218
32,627,218
34,930,466
34,930,466
38,727,447
38,727,447
41,767,259
41,767,269
41,348,867
41,348,867
4X4
Totals
Assessed
Value
Estlaialed
Actual Value
$ 139,584,860
$ 149,313,847
197,194,025
210,910,206
218,591,694
235,206,327
273,650,322
287,200,145
334,640,837
360,765,279
375,807,867
375,807,887
424,437,664
424,437,664
469,310,003
469,310,003
505,655,888
5056656,588
582,355,145
582,355,145
4X4
CITY OF OCOEE, FLORIDA
PROPERTY TAX RATES AND TAX LEVIES
DREG AND OVERLAPPING G0VERNMENTS
LAST TEN FISCAL YEARS
Village Rates ($7 per $1,000 of taxable value)
Fiscal
City Of
Orange
School
Year
Ocoee
CourTW
Board
Total
1988
2B0
4.5144
7.347
14.6614
1989
4.00
5.2899
8.414
17.7029
1990
4.00
5.2889
8.271
17.5599
1991
4.00
5.2889
9.149
18.4379
1992
4.00
5.2889
9.003
18.2919
1993
4.00
5.2889
8.930
18.2189
1994
4.00
5.2889
8.930
18.2189
1995
4.00
5.2889
9.324
18,6129
1996
4.00
5.2889
9.375
186639
1997
4.00
5.2889
9.077
18.3659
Ta)( hies
Fiscal
City Of
Orange
School
Year
Ocoee
County
Board
Total (a)
1988
490,488
106,584,419
180,932,152
288,007,059
1989
588,036
124,196,244
215,618,692
340,402,972
1990
B47,OB0
135,534,312
242,412,856
378,794,248
1991
1,064,847
155,011,166
287,746,102
443,822,115
1992
1,338,563
166,541,712
290,845,109
458,725,384
1993
1,503,231
170,859,789
280,973,951
453,336.971
1994
1,697,751
174,905,763
294,730,923
471,334,437
1995
1,877,240
185,923,621
317,282,778
505,083,639
1996
2,022,628
186,439,938
330,479,770
518,942,336
1997
2,329,421
196,778,976
341,439,747
640,548,144
(a) Tax Rates and Levies of a fraction of one mill assessed in various years by other units against dis-
tricts covering less than the mire City or County were omitted here.
481-.
CRY OF OCOEE, FLORIDA
SPECIAL ASSESSMENT COLLECTIONS
LAST TEN FISCAL YEARS
The City of Ocoee, Florida did not have any material special assessment collections in the last
ten fiscal years.
-82-
CITY OF OCOEE, FLORIDA
RATIO OF NET. GENERAL OBDGATION BONDED DEBT
To ASSESSED VAW E AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
Note: The City or Ocoee does not have any general obligation debt which Is being repaid through general
property taxes.
CITY OF OCOEE, FLORIDA
LEGAL DEBT MARGIN
SEPTEMBER 30,1997
Assessed Value $ 582.355.145
Debt Limit: 50% of Assessed Value $ 291,177,573
Amount of Debt Applicable to Debt Umit:
Total Bonded Debt 8165.000
Legal Debt Margin $ 21.012.573
Article VII Section 39 of the City Charter states that the City shall have the power to Issue general
obligation bonds in an aggregate principal amount of bonds outstanding at any time not in
excess of fifty percent (50%) of the assessed value of the taxable property within the Clty as
shown on the pertinent tax records at the time of the authorization of the general obligation bonds
for which the full faith credit of the City is pledged.
-84-
Debt
Ratio Of
Gross
Service Net
Net Bonded
Net Bonded
1="
Assessed Bonded
Fads Bonded
Deli To
Debt Per
Year
Po uP i
Value Debt
Avall_able Debt
Assessed Value
Capita
1988
11,765
$139,584,860 $ —
$ — $ —
$ —
$
1989
11,822
197,194,025 —
— —
—
—
1990
13,&52
218,591,694 —
— —
—
—
1991
14,926
273,660,322 —
— —
—
—
1992
15,107
334,640,837 —
— —
—
—
1993
16,418
375,807,867 —
— —
—
—
1994
17,489
424,437,664 —
— —
—
—
1995
18,578
469,310,003 —
— —
—
1996
19,261
505,656,888 —
— —
—
—
1997
20,560
582,355,145 —
— —
—
—
Note: The City or Ocoee does not have any general obligation debt which Is being repaid through general
property taxes.
CITY OF OCOEE, FLORIDA
LEGAL DEBT MARGIN
SEPTEMBER 30,1997
Assessed Value $ 582.355.145
Debt Limit: 50% of Assessed Value $ 291,177,573
Amount of Debt Applicable to Debt Umit:
Total Bonded Debt 8165.000
Legal Debt Margin $ 21.012.573
Article VII Section 39 of the City Charter states that the City shall have the power to Issue general
obligation bonds in an aggregate principal amount of bonds outstanding at any time not in
excess of fifty percent (50%) of the assessed value of the taxable property within the Clty as
shown on the pertinent tax records at the time of the authorization of the general obligation bonds
for which the full faith credit of the City is pledged.
-84-
CRY OF OCOEE, FLORIDA
COMPUTATION OF DIRECT AND OVERLAPPING
GENERAL OBLIGATION DIET
SFprF7ABER 30, 1997
G, emmcrd unit
Library District Refunding Bonds -
Series 1993
Total Overlapping Debt
Total Direct Debt (2)
Total Direct and
Overlapping Debt
Applicable To
Bonds Cly Of Ocoee
Outstanding Pemern f1) Anrount
$ 9,205,000 1.43% 131632
131,632
$ 131,632
(1) Ratio of assessed valuation of taxable property In overlapping unit to that within the City of 0000e-
12) The City of Ocoee does not currently have any general obligation debt which is being repaid through
general property taxes.
-85-
CITY OF OCOEE, FLORIDA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR GENERAL OBLIGATION BONDED DEBT TO TOTAL
GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES
LAST TEN FISCAL YEARS
(1) Includes expenditures of the General Fund only.
-86-
Ratio Of
Total
Debt Service
General
To Total
Fiscal
Total Debt
Expenditures
General
Year
Principal
Interest
Service
(1)
Expenditures
1988
$ 3,706
$ 141,164
$ 144,870
$3,838,373
3.8%
1989
74,505
148,954
223,459
3,748,802
6.0%
1990
213,655
176,530
390,185
5,060,097
7.7%
1991
105,000
589,760
694,760
6,295,025
11.0%
1992
185,000
683,333
868,333
6,335,748
13.7%
1993
195,000
672,432
867,432
6,671,716
13.0%
1994
210,000
660,568
870,568
8,629,065
10.1%
i 1995
225,000
647,503
872,503
8,808,659
9.9%
1996
240,000
633,198
873,198
9,362,905
9.3%
1997
255,000
618,098
873,088
11,217,057
7.8%
(1) Includes expenditures of the General Fund only.
-86-
CrrY OF OCOEE, FLORIDA
REVENUE BOND COVERAGE
CITY OF OCOEE, FLORIDA
LAST TEN FISCAL YEARS
DEMOGRAPHIC STATISTICS
WATER AND WASTEWATER REVENUE BONDS
Population
Cb of Ocoee
Orange County
Water Fund
Year
Pooulatgn
% Unease
Pooulatlat
% Increase
Not Ra/arntue
1988
11,765
1.8
623,425
3.4
Fiscal
Gross
Operating Avaeable For Debt Service Reouuements
year,
Revenue(21
Elmenses(31 Debt Service Pdrd al Interest
Total
Cweraoa
1989
11,822
.5
653,982
4.9
1988-
1989(1)
N/A
N/A WA WA N/A
N/A
N/A
1990
13,852
17.17
665,312
1.7
1990
$ 1,019,746
$ 629,387 $ 390,359 $ - $ 98,090
$ 98,090
3.98
1991
14,926
7.75
677,491
1.8
1991
$ 1,244,492
$ 737,261 $ 607,231 $ - $ 129,720
$ 129,720
3.91
1992
$ 1,467,315
$ 830,328 $ 636,987 $ - $ 141,567
$ 141,567
4.60
1
1992
15,107
1.21
.
698,847
3.2
1993
$ 1,484,293
$ 972,925 $ 511,368 $ - $ 117,850
$ 117,850
4.34
1993
16,418
8.68
727,780
4.1
1994
$ 1,558,606
$ 981,904 $ 576,702 $ 46,800 $ 108,839
$ 155,639
3.71
1995
$ 2,085,987
$ 1,035,963 $ 1,050,024 $ 48,000 $ 107,341
$ 155,341
6.76
1994
17,489
6,62
740,187
1.7
1995
18,578
623
758,962
2,5
Wastewater Fund
1 1996
19,261
3.67
777,658
24
Net Revenua
Fiscal
Crow
Operating Available For Deli Service Reauvernents
1997
20,560
6.74
803,614
3,3
year
Revenue(2)
Emerrsrs(3) Debt Service Pdrcf aI Interest
Tata)
Covera la
Population Proiecfipre
1988
$ 789,607
$ 334,548 $ 455,059 $ - $308,951
$ 308,951
1.47
1989
$ 1,166,111
$ 435,039 $ 721,072 $ - $491,411
$ 491,411
1.47orange
tate Of
1990
$ 1,346,151
$ 519,561 $ 826,590 $ - $374,692
$ 374,692
2.38
�,�
County
1991
$ 1,494,661
$ 579,698 $ 914,963 $ - $586,560
$ 586,560
1.56
1992
$ 1,696,995
$ 637,603 $ 1,002,392 $ - $640,129
$ 640,129
1.57 1
1997
803,614
14,411,563
1993
$ 1,920,150
$ 664,527 $ 1,255,623 $ - $443,865
$ 443,865
2.83
1994
$ 1,706,450
$ 887,455 $ 818,995 $148,200 $344,655
$ 492,855
1.66
20W
846,697
15,428,873
1995
$ 1,945,095
$ 878,102 $ 1,066,993 $152000 $339,913
$ 491,913
2.17
Population Distrdwriar
W Ape
Water and Wastewater Fund (4)
Net Revenue
Orange
Slate Of
Fad
Gross
Openierg Available For Debt Service Requyements
year
County
Florida
year
Revenue(2)
E+meoses(3) Debt Service Principal Imerest
Total
Coveraoe
0.14
21.1%
19,3%
1998
$ 4,301,827
$ 2,134,380 $ 2,167,447 $205,000 $440,054
$ 645,054
3.36
15-24
14.8
11.9
1997
4,827,018
2,601,888 2,225,130 335,000 825,907
1,160,907
1.92
2544
34.4
29.0
45-64
18.9
21.3
(1) The City of Ocoee did not have any Revenue Bond Debt in this fund during these years.
(2) Total revenues (including
re
interest and gain on sale of property, plant and equipment).
65 and over
10.8
18.5
(3) Excludes depreciation, amortization and Interest expense.
(4) The City of Ocoee combined the Water and Wastewater Funds imp one fund during the fiscal year ended
Source: UnNersfty of Florida, Bureau of Economic and Business Research
September 30, 1996.
East Central Florida Planning Council, Council Quarterly, Second Quarter, 1996
-87-
-88-
CITY OF OCOEE, FLORIDA
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
LAST TEN YEARS
(a) Source: City of Oooee Building Department.
(b) Source: Florida Bankers Association. Amunts for 1978.1986 are as of December 31; thereafter amount
is as of September 30. Bank deposits are for entire Orange County.
(c) Source: Federal Home Loan Bank Board Research Department. Amounts for 1978-1983, 1986 and 1987
are as of June 30. 1984 and 1985 amounts are as of December 31. Source for 1990 is Florida
Bankers Association. Amount Is as of September 30. SaNngs and Loan deposits are for entire
Orange County.
Bank Deposits
Resderelal Corsnuc9m (a
�90-
- Coeanercial (a)
Additions/ (a)
0n thousands)
Year
Number
Ori
FamW
of Units
Mum
Family
Value
Constn'n'tiori
Value
Afte1^ation's
Value
Total
Value (a)
Banks (b)
8s
Ard
Loans (c)
1988
143
14
$ 9,291,000
$ 2,339,000
$ 1;107,876
$ 12,737,876
4,530,190
2,501,530
1989
239
6
14,656,699
8,183,652
1,012,399
23,852,760
4,888,783
3,050,283
1990
297
265
30,966,225
8,585,195
780,078
40,321,498
5,524,771
1,803,816
1991
314
10
26,463,025
36,322,749
1,618,759
64,394,533
6,648,164
1,568,318
1992
438
0
36,622,069
1,040,010
546,550
38,208,629
5,614,174
- 2,936,546
1993
411
0
36,188,257
5,667,958
1,908,581
43,764,796
5,743,997
1,133,135
1994
402
0
35,211,374
3,569,955
1,432,460
40,213,789
5,874,598
1,078,501
1995
331
0
28,836,038
21,823,750
701,252
51,361,038
6,147,414
828,351
1996
366
0
33,950,817
63,337,471
23327,526
99,615,814
6,937,918
859,921
1997
497
0
44,476,342
4,818,000
155,575
49,448,917
7,128,190
793,849
(a) Source: City of Oooee Building Department.
(b) Source: Florida Bankers Association. Amunts for 1978.1986 are as of December 31; thereafter amount
is as of September 30. Bank deposits are for entire Orange County.
(c) Source: Federal Home Loan Bank Board Research Department. Amounts for 1978-1983, 1986 and 1987
are as of June 30. 1984 and 1985 amounts are as of December 31. Source for 1990 is Florida
Bankers Association. Amount Is as of September 30. SaNngs and Loan deposits are for entire
Orange County.
�90-
,�n
CITY OF OCOEE, FLORIDA
SCHEDULE OF TEN LARGEST TAXPAYERS
SEPTEMBER A 1997
Note:
I'l The taxi levy for the fiscal year ended September 30, 1997 is based on the 1996 taxable value,
91-
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Ocoee
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Taxable Assessed
Valuation As of
Taxmaver
Type of Business
1996 Tax Roll ex
Percenta0e
1. GGP/Homart, Inc.
West Oaks Mall
$ 15,489,250
2.7%
2. Oak Forest Partners, Ltd.
Developer
9,600,006
1.6%
3. Manheim Remarketing, LP
Developer
9,405,293
1.6%
4. Good Homes Plaza
Shopping Center
9,302,171
1.6 %
5.Towne Square Associates
Shopping Center
6,685,168
1.1 %
6. West Orange Healthcare District
Health Care
6,383,453
1.1 %
7. Westlake Partners, Ltd,
Developers
6,151,669
1.0%
8. Lake Olympia Square Partnership
Shopping Center
6,306,914
.9%
9. Sysoo Food Services of
-
Central Fbdda
Food Distribution
5,051,762
.9%
10. Teachers Insurance & Annuity
Investments
4.375.720
0.8%
Total Taxable Assessed Value
of 10 Largest Taxpayers
77,651,298
13.3%
Total Taxable Assessed Value of
Other Taxpayers
604.703.849
86.7%
Total Taxable Assessed Value of
All Taxpayers
$ 682.355,145
100.0 %
Note:
I'l The taxi levy for the fiscal year ended September 30, 1997 is based on the 1996 taxable value,
91-
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Ocoee
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CRY OF OCOEE, FLORIDA
MISCELLANEOUS STATISTICAL DATA
SEPTEMBER 30.1997
Date of Incorporation
City Charter Adopted
Commission Composed of
Terms Of Office:
Mayor
Commissioners
City Manager
Areas Of City
Municipal Employees (Including Part -Time)
Elections:
Registered Voters
Votes Cast In Last Municipal Elections (February 1997)
Mlles of Streets, Sidewalks And Bike Paths
Streets - Paved
Streets - Unpaved
Streets - Brick
Sidewalks
Bike Paths
Fire Protection:
Stations
Employees
Police Protection:
Stations
Employees
Vehicular Patrol Units
Patrol Cars
Other Vehicles
Recreation:
Community Center
Athletic Fields
Tennis Courts
Racquetball Courts
Shueleboard Courts
City Playgrounds And Passive Parks
Parks and Recreation Developed Areas
.nrl
May 13, 1925
November e, 1988
1 Mayor, 4 COMMiselOners
2 years
2 years
Appointed
16.8 Square Miles
249
8,567
2,321
CITY OF ODOM FLORIDA
MISCELLANEOUS STATISTICAL DATA - CONTINUED
SEPTEMBER 3% 1997
Water System
Mlles Of Water Mains
Daly Average Consumptlons (Gallons)
Plant Capacity, (Gallons)
Service Connections
Deep Wells
Fire Hydrants
Sewer System
Mlles of Sanitary Sewers
Lel Stations
Daily Average Treatment
Plant(s) Capacity (MGD)
Disposal Plants
1 D3.4 miles
3.2 miles
1.1 Mlles
65.7 miles
.5 miles
2
43
1
73
17
11
1
8
7
2
2
8
3
93-
-92-
100.47
4,400,000 (OPD)
20,160,000 (GPD)
7,447
7
722
46.84
36
1,100,000 (GPD)
3.0
1
' CITY OF OODEF- FLORIDA
SCHEDULE OF "WRANCE IN FORCE
SEPTEMBER 30, 1987
Buildings And Personal Property:
Muhl -period, 'all risk'
100% Of Replacement Value
Comprehensive General Uability:
Combined Single Umff For Bodily & Property
Automobile Uabllily:
Combined Single Um&
Uninsured Motorist
Law Enforcement Liability:
Combined Single Umft For Bodily & Property
Blanket Fidelity
Public Official Errors & Omission Insurance
Aggregate
workers Compensation
Stated Values
Blanket Building Coverage
Blanket Contents Coverage
Boiler & Machinery
Inland Marine - Computer
Inland Marine - Equipment
Valuable Papers
Radio Equipment
$ 2,000,000/occurrence
$ 8,000,000/aggregate
$ 2,000,000/person
S 2.00.000/occurrence
$ 20,OD0
$ 2,OOO,ODO/occumence
$ 2,D00,000/aggregate
$ 50,000
$ 2,500 per Loss Deductible
$ 2,DOO,000/$2,000,000
$ 1,ODD,ODO/occurrence
$ 1,000,000/aggregate
$ 18,143,474
Inc. In Bldg Umh
5,000,000
440,280
681,071
5,000
1,387,564
REPORTS ON INTERNAL CONTROL AND COMPLIANCE
MCDIRNIIT, DAMS, LAUTERIA,
PUCKETT, VOGEL & COMPANY, P.A.
606 E. Robinson Street, Seats 636
Post Office Box 1185
Orlando, Florida 32802-1186
Telephnne:(407) 843.6406
Fax: (407) 6499639
E.Mail: mdlpr@aol.com
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL
STRUCTURE BASED ON AN AUDIT OF GENERAL PURPOSE
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERPOKENTAUD177NG STANDARDS
The Honorable Mayor and City Commissioners
City of Ocoee, Florida
We have audited the general purpose financial statements of the City of Ocoee, Florida as of
and for the year ended September 30, 1997, and have issued our report thereon dated
December 5, 1997.
We have. conducted our audit in accordance with generally accepted alldhing standards and
GovemmentAuditine Standards, issued by the Comptroller General of the United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the generalpurpose financial statements are free of material misstatement.
The management of the City of Ocoee, Florida is responsible for establishing and maintaining
an internal control structure. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of internal control
structure policies and procedures. The objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition, and that transactions are
executed in accordance with management's authorization and recorded properly to permit the
preparation of financial statements in accordance with generally accepted accounting
principles. Because of inherent limitations in any internal control structure, errors or
irregularities may nevertheless occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that procedures may become
inadequate because of changes in conditions or that the effectiveness of the design and
operation of policies and procedures may deteriorate.
In planning and performing our audit of the general purpose financial statements of the City
of Ocoee, Florida for the year ended September 30, 1997, we obtained an understanding of
the internal control structure. With respect to the Internal control structure, we obtained an
understanding of the design of relevant policies and procedures and whether they have been
placed in operation, and we assessed control risk in order to determine our auditing
procedures for the purpose of expressing our opinion on the general purpose financial
statements and not to provide an opinion on the internal control structure. Accordingly, we
do not express such an opinion.
Member: Pmeu Compenin Pnn✓e Senun • Amenun Lv,iW u off:enlfied PUE4e Mmununu. Ftoride Iru,iluualCmSeE Publla Mmununu
-95-
Our consideration of the internal control structure would not necessarily disclose all matters
in the internal control structure that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A material weakness
is a reportable condition in which the design or operation of one or more of the internal
control structure elements does not reduce to a relatively low level the risk that errors or
irregularities in amounts that would be material in relation to the general purpose financial
statements being audited may occur and not be detected within atimely period by employees
in the normal course of performing their assigned functions. We noted no matters involving
the internal control structure and its operation that we consider to be material weaknesses as
defined above.
However, we noted certain matters involving the internal control structure and Its operation
that we have reported to the management of the City of Ocoee in a separate letter dated
December 5, 1997.
This report is Intended for the information of management, the City Commission, and the
Auditor General of the State of Florida. However, this report is a matter of public record and
Its distribution is not limited.
1)tMrxLl-,hNA),.iJId VA.
' /�tnkitG,Utr�a6tPo7xtatx� RQ.
McDIRMIT, DAVIS, LAUTERIA,
PUCKETT, VOGEL & COMPANY, P.A.
December 5, 1997
-96-
CPA
MCDIRMIT, DAMS, LAUTERIA,
PUCKETT, VOGEL & COMPANY, P.A.
605 E. Aobineav Street, suite 636
Post Office Box 1185
Orleudo, Florida 328021186
Telephone: (4077) 843.6406
Fax: (407) 649-9339
E -Mail; mdlputsaol.com
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE
BASED ON AN AUDIT OF GENERAL PURPOSE
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITEVG STANDARDS
The Honorable Mayor and City Commissioners
City of Ocoee, Florida
We have audited the general purpose financial statements of the City of Ocoee, Florida as of
and for the year ended September 30, 1997, and have issued our report thereon dated
December 5, 1997.
We conducted our audit in accordance with generally accepted auditing standards and
GovemmentAudfringStandards, issued by the Comptroller General of the United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to the City of Ocoee,
Florida is the responsibility of City management. As part of obtaining reasonable assurance
about whether the financial statements are tree of material misstatement, we performed tests
of City of Ocoee compliance with certain provisions of laws, regulations, contracts, and grants.
However, the objective of our audit of the general purpose financial statements was not to
provide an opinion on overall compliance with such provisions. Accordingly, we do not
express such an opinion.
The results of our tests disclosed the following instance of noncompliance that is required to
be reported herein under Government Audidne Standards.
(1) The City did not take a physical inventory of fixed assets during 1997. Rules of the
Auditor General, Chapter 10.400 and Florida Statutes, Chapter 274, require that once
each year, and whenever there is a change in custodian, each custodian shall
inventory all property in his or her custody.
We considered these instances of noncompliance in forming our opinion on whether the City
of Ocoee, Florida's 1997 general purpose financial statements are presented fairly, in all
material respects, in conformity with generally accepted accounting principles, and this report
does not affect our report dated December 5, 1997 on those general purpose financial
statements.
MemMn: Rbm C .,..ie. I.a. S ... Mo.—IwuwY erC.efld P.b4cAme..... R -d. LUWuu.11ref ed Publlc.bmun,anl.
-97-
We also noted certain immaterial instances of noncompliance that we have reported to the
management of City of Ocoee is a separate letter dated December 5, 1997.
This report is intended for the information of management, the City Commission, and the
Auditor General of the State of Florida. However, this report Is a matter of public record and
its distribution is not limited.
�11c�Jt/xld4.d
I{rpk[fL, f/tt�d r C'o7xfuarc�,QA.
MCDIRMIT, DAVIS, LAUTERIA,
PUCKETT, VOGEL & COMPANY, P.A.
December 5, 1997
-98-
APPENDIX C
COPY OF THE RESOLUTION
[This page intentionally left blank]
avp io qaf sf
NOTES TO FINANCIAL STATEMENTS
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CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Ocoee, Florida, conform to generally accepted
accounting principles as applicable to governments. The following is a summary of
the more significant policies:
Reporting ity operates under a commission -manager government whereby the Mayor
and Commission are elected by the registered voters of the City of Ocoee. The
Commission appoints the City Manager, who in turn performs as the
administrator of the everyday operations of the City. The City provides a full
range of municipal services as directed by the City Charter, including general
government, public safety, public improvements, planning and zoning, water and
wastewater service, refuse collection, and related general administrative services.
The financial statements of the City of Ocoee, Florida include all those separately
administered departments and funds for which the City has financial
accountability. Financial accountability is present if the Commission appoints a
voting majority of a component unit's governing body and has the ability to
impose Its will on that organization or if there is a potential for the organization
to provide specific financial benefits to, or impose specific financial burdens on,
the City.
Based upon the application of the above mentioned criteria as set forth in Gov-
ernment Accounting Standards Board Statement Number 14, The Financial
Reporting Enthy, there were no polemist component units or related organizations
of the City.
Fund Accounting
The accounts of the City are organized on the basis of funds or account groups,
each of which is considered a separate accounting entity. The operations of
each fund are accounted for with a separate set of self -balancing accounts. The
various funds are grouped by type in the financial statements. The following fund
types and account groups are used by the City.
Governmental Fund Types
General Fund
To account for all financial resources except those required to be accounted
for in another fund. All general tax revenues and other receipts that are not
allocated by law or contractual agreement to another fund are accounted for
In this fund. The general operating expenditures, fixed charges, and capital
improvement costs that are not paid through other funds are paid from the
general fund.
-13-
CITY OF OCOEE. FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Governmental Fund Types - Continued
Special Revenue Funds
To account for the proceeds of specific revenue sources (other than
expendable trust, or major capital projects) requiring separate accounting
because of legal, regulatory provisions or administrative action.
Debt Service Funds
To account for the accumulation of resources for, and the payment of general
long-term debt principal and interest.
Capita Projects Funds
To account for financial resources to be used for the acquisition or con-
struction of major capital facilities (other than those financed by proprietary
funds).
Proprietary Fund Types -
Enterprise Funds
To account for operations that are financed and operated in a manner similar
to private business enterprises, where the Intent of the governing body is that
costs of providing goods or services to the general public on a continuing
basis be financed or recovered primarily through user charges, or where the
governing body has decided that periodic determination of net Income is
appropriate for capital maintenance, public policy, management control,
accountability, or other purposes.
Fiduciary Fund Types
Trust and Agency Funds
To account for assets held by the City in a trustee capacity for Individuals,
private organizations, other governments, and/or other funds. When these
assets are held under the terms of a formal trust agreement, either a pension
trust fund, a nonexpendable trust fund, or an expendable trust fund is used..
The terms "nonexpendable" and "expendable" refer. to whether or not the.
government is under an obligation to maintain the trust principal.
Account Groups
General Fixed Assets Account Group other than those accounted for in
To account for all feted assets of the City,
the enterprise funds.
General Long -Term Debt
To account for the outstanding principal balances on any general obligation
debt of the City.
-14-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Basis of Accounting and Measurement Foals
Governmental fund types include the general, special revenue, debt service, and
capital projects funds. The governmental fund type measurement focus is upon
determination of financial flow (financial position, changes in financial position,
sources, uses, and balances of financial resources rather than upon net income
determination). These funds are maintained on the modified accrual basis of
accounting. Under this method of accounting, revenues are recognized when
they become measurable and available as net current assets, or when suscepti-
ble to accrual; i.e., both measurable and available. "Measurable" means that the
amount of the transaction can be determined and "available" means collectible
within the current period or soon enough thereafter to be used to pay liabilities
of the current period. Revenues which are susceptible to accrual are substan-
tially all governmental fund revenues except licenses and permits, charges for
services, franchise fees, and utility services taxes. Special assessments are
recognized as revenue only to the extent that individual installments are con-
sidered current assets. Property taxes are billed and collected within the same
fiscal period and are recognized when levied to the extent that they result in cur-
rent receivables. Expenditures are recorded when the liability is incurred, except
for principal and interest on general long-term debt, which is recognized when
due.
In applying the "susceptible to accrual' concept to intergovernmental revenues
(grants, entitlements and shared revenues), the legal and contractual require-
ments of the numerous individual programs are used as guidance. There are
essentially two types of these revenues. In one, monies must be expended on
the specific purpose or project before any amounts will be earned by the City;
therefore, revenues are recognized based upon when the expenditures are made.
In the other, monies are essentially unrestricted as to purpose of expenditure and
revocable only for failure to comply with prescribed compliance requirements.
These resources are reflected as revenues at the time of receipt or earlier If they
meet the criterion of availability.
The proprietary fund type measurement focus is upon determination of capital
maintenance (net income, financial position, and changes in financial position).
These funds are maintained on the accrual basis of accounting. Under this
method, revenues are recorded when earned and expenses are recorded at the
time liabilities are incurred. The City adopted GASB Statement No. 20 and chose
not to apply all FASB pronouncements issued after November 30, 1989.
Cfry OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30.1997
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Utility operating revenues (solid waste, water, and wastewater revenues, and
related utility taxes) are recognized during the month of consumption. Services
consumed, but not billed, are accounted for as unbilled utility revenues.
The basis of accounting and measurement focus of the expendable trust fund is
the same as governmental fund types and therefore is maintained on the
modified accrual basis of accounting. The basis of accounting and measure-
ment focus of the nonexpendable trust and pension trust funds is the same as
proprietary fund types and therefore is maintained on the accrual basis of
accounting.
Agency funds are purely custodial (assets equal liabilities) and thus do not
involve measurement of results of operations. The modified accrual basis of
accounting is followed for recognizing both assets and liabilities.
Budgets and Budgetary Accounting
The City follows these procedures in establishing the budgetary data reflected in
the financial statements:
1. Prior to September 30th, the City Manager submits to the City Commission a
proposed operating budget for the fiscal year commencing the following
October 1st. The operating budget includes proposed expenditures and the
means of financing them.
2. Public hearings are conducted at the City Hall to obtain taxpayer comments.
3. Prior to October 1st, the budget is legally enacted through passage of a
resolution.
4. The City cannot legally exceed the budget; however, the City Manager is
authorized to transfer budgeted amounts within departments within any fund.
Any revisions that alter the total expenditures of any department must be
approved by the City Commission.
5. Formal budgetary integration is employed as a management control device
during the year for the General and Enterprise Funds.
-15- -16-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
8. Budgets are legally adopted for the General Fund, the Enterprise Operations
and Maintenance Funds and one Special Revenue Fund: the Stormwater
Fund. The budgets for the General Fund and the Stormwater Fund are
prepared on a budgetary basis, whereby encumbrances are treated as ex-
penditures. Unencumbered appropriations are lapsed at year end, except an
appropriation for a capital expenditure. An appropriation for a capital
expenditure shall continue in force until the purpose for which it was made has
been accomplished or abandoned; the purpose of any such appropriation
shall be deemed abandoned lt three years pass without any disbursement
from or encumbrance of the appropriation. The budgets for the Enterprise
Funds are prepared on a modified accrual basis of accounting, which is not
the same basis of accounting as that used to account for the actual results of
operations. The actual results of operations are accounted for on an accrual
basis. The following hems Indicate the primary differences between the
budgetary basis and the GAAP basis used to account for the results of
operations for the operating accounts:
a. Interest Income earned on restricted assets is included in the results of
operations. Such amounts are not budgeted in the operating accounts.
This portion of Interest income is restricted for a specific purpose (debt,
capital projects, renewal and replacement, etc.) and is not normally avail-
able for operations.
b. Intrafund transfers to the restricted accounts are budgeted and transferred
on a budgetary basis, but are eliminated on a GAAP basis.
c. Depreciation expense Is not budgeted; however, expenditures for capital
outlays are budgeted. These outlays have been capitalized into fixed
assets and eliminated from the results of operations on a GAAP basis.
d. Principal and interest payments on capital leases are budgeted as
expenses. Principal payments are recorded as a reduction of capital lease
obligation and eliminated from the results of operations on a GAAP basis.
7. Budgeted amounts presented in the accompanying financial statements have
been adjusted for legally authorized revisions of the annual budgets during the
year.
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30.1997
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Encumbrances
Encumbrance accounting, under which purchaseorders, contracts, and other
commitments for the expenditure of funds are recorded in order to reserve that
portion of the applicable appropriation, is utilized in the governmental funds.
Encumbrances are reported as reservations of fund balances since they do not
constitute expenditures or liabilities.
Tap and Impact Fees
The City collects water and wastewater tap fees which are recorded as operating
revenue only to the extent that the amount equals the cost of physical connec-
tion to the system. Amounts that substantially exceed the cost to connect are
recorded as an addition to contributed capital.
Deposits received which reserve capacity In the City's water and wastewater
facilities are recorded as contributed capital. Other deposits received from
customers are recorded as liability until all legal requirements, as stipulated by
the City's water and wastewater ordinances, are fulfilled.
Cash and Cash Equivalents
Cash balances from the majority of funds are pooled for Investment purposes.
Earnings from such investments are allocated to the respective funds based on
applicable cash participation by each fund.
Cash and cash equivalents include cash on hand, demand deposits, repurchase
agreement, cash with paying agent, cash with State -Board of Administration Local
Government Surplus Funds Trust Fund (SBA), and all highly liquid Investments
(Including restricted assets) with a maturity of ninety days or less when
purchased. Each fund's equity In the City's pooled cash (checking) account Is
included in cash and cash equivalents.
-17- -18-
CRY OF OCOEE. FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Investments
Investments in all fund types are stated at fair value, which is the amount at which
an investment could be exchanged in a current transaction between willing
parties, other than in a forced liquidation sale. Fair value is based on quoted
market prices. Income from investments held by the individual funds is recorded
in the respective fund as it is earned. Changes in the fair value of investments
is recognized as revenue and Included in Investment Income. Reporting
investments at fair value is a change in accounting principle from prior years.
The City adopted Government Accounting Standards Board (GASB), Statement
No. 25, Financial Reporting for Defined Benefit Pension Plans and Note
Disclosures for Defined Contributions Plans, GASB Statement No. 27, Accounting
for Pensions by State and Local Governmental Employees, and GASB Statement
No. 31, Accounting and Financial Reporting for Certain Investments and External
Investment Pools. These statements require the recording of investments at fair
value and a new financial statement presentation for pension trust funds. The
effect of adopting these Statements is described in Note 18,
Inventories
Inventories are stated at cost, using the FIFO method. The cost of governmental
fund -type inventories are accounted for by the consumption method, under which
such inventory is recorded as an expenditure when used.
Amortization of Bond Discount and Issuance Costs
In the governmental fund types, bond Issuance costs are charged as current ex-
penditures when the bonds are issued. For all enterprise funds, bond discount
and issuance costs are amortized on a straight-line basis, which approximates
the interest method, over the life of the bonds. Amortization of bond issuance
costs amounted to $22,562 for the 1997 fiscal year. Amortization of bond dis-
count, included in interest expense, amounted to $8,167 for the 1997 fiscal year.
Restricted Assets
The use of certain assets of enterprise funds is restricted by specific provisions
of bond resolutions and agreements with various parties. Assets so designated
are identified as restricted assets on the balance sheet.
CRY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Property, Plant and Equipment
Property, plant, and equipment owned by the enterprise funds is stated at his-
torical cost or estimated historical cost. Additions, improvements, and other
capital outlays that significantly extend the useful lite of an asset are capitalized.
Other costs incurred for repairs and maintenance are expensed as incurred.
Depreciation of plant and equipment is provided on the straight line basis over
the following estimated useful lives:
Buildings, 7430 years Improvements, 20.40 years
Equipment, 5.10 years
Contributions of property, plant, and equipment received from federal, state, or
local sources are recorded as contributions to equity when received. Deprecia-
tion on contributed property, plant, and equipment is recorded as a reduction of
contributed capital.
General Fixed Assets
General fixed assets have been acquired for general governmental purposes.
Assets purchased are recorded as expenditures in the governmental funds and
capitalized at cost in the general fixed assets account group. In the case of gifts
or contributions, such assets are recorded at fair market value at the lime
received.
Certain improvements, such as roads, bridges, curbs, gutters, streets, sidewalks,
drainage systems, and lighting systems have not been capitalized. Such assets
normally are immovable and of value only to the City. No depreciation has been
provided on general fixed assets.
Postretirement Benefits
The City does not provide any postretirement health care and ilte insurance
benefits for employees.
Capitalization of Interest
Net interest cost relating to construction is capitalized.
Compensated Absences
The City accrues accumulated unpaid vacation and sick leave when earned by
the employee. Upon termination, the employee receives a rash benefit for the
number of days accrued at the employee's current wage rate. The noncurrent
portion (the amount estimated not to be used in the following year) for Govern-
mental Funds is recorded in the General Long -Term Debt Account Group. The
liability for Compensated Absences for Proprietary Fund Types is shown as a
current liability of those funds.
-19- -20-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30.1997
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Lang -Tenn Obligations
Long-term debt is recognized as a liability of a governmental fund when due, or
when resources have been accumulated in the debt service fund for payment
early in the following year. For other long-term obligations, only that portion
expected to be financed from expendable available financial resources is reported
as a fund liability of a governmental fund. The remaining portion of such
obligations is reported in the general long-term debt account group. Long-term
liabilities expected to be financed from proprietary fund operations are accounted
for in those funds.
Fund Equity
Proprietary Funds
Contributed capital consists of funds from developers, federal and state
(capital) grants, and a portion of connection fees charged to customers as
previously discussed. Grants received for operating assistance are recorded
as non-operating revenue.
Reservations of retained earnings are created by increases in assets restricted
for debt service, renewal and replacement, and other contractual obligations.
These increases result from earnings on restricted assets and other intrafund
transfers to (from) restricted accounts. Earnings on restricted assets are
included in net income of the Proprietary Funds. Reserves are not established
for bond proceeds deposited Into construction accounts.
Governrtnerntal Funds
Reserves of the governmental funds are limited to the portions of fund balance
which are either not subsequently appropriate for expenditures or legally
segregated for a specific use.
4rterfurnd Transactions
Transactions which constitute reimbursements to a fund for expenditures
(expenses) initially made are recorded as expenditures or expenses (as appro-
priate) in the reimbursing fund and as reductions of the expenditures (expenses)
in the reimbursed fund.
All interfund transactions except advances and reimbursements are accounted
for as transfers. Nonrecurring or nonroutine transfers of equity between funds
are considered residual equity transfers. All other interfund transactions are
treated as operating transfers.
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Total Cokxrnrns on Combined Statements - Overview
Total columns on the combined statements are captioned Memorandum Only to
indicate that they are presented only to facilitate financial analysis. Data in these
columns do not present financial position, results of operations or its cash flows
in conformity with generally accepted accounting principles. Neither is such data
comparable to a consolidation. Interfund eliminations have not been made in the
aggregation of this data.
NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Compliance with Rules of the Auditor General
The City did not take an annual physical inventory of fixed assets during 1997 as
required by Rules of the Auditor General, Chapter 10.400 and Florida Statutes,
Chapter 274.
NOTE 3 - BUDGET BASIS OF ACCOUNTING
The General Fund and Stormwater Fund budgets are prepared on a budgetary basis,
whereby encumbrances are treated as budgeted expenditures in the year of incur-
rence of the commitment to purchase. In addition, the City includes a portion of the
prior year's fund balance represented by unappropriated liquid assets remaining in the
fund as a budgeted revenue in the succeeding year. The results of operations on a
GAAP basis do not recognize the fund balance allocation as revenue as it represents
prior periods' excess of revenues over expenditures. Also, the City does not budget
for capital outlay expenditures and other financing sources related to the acquisition
of assets through capital leases.
For the 1997 fiscal year, the following adjustments were necessary to convert General
Fund expenditures on the GAAP basis to the budgetary basis:
Other Fnandng
Expenditures Sources (Uses)
GAAP Basis $10,227,580 $ 946,698
Encumbrances 192.599 "—
Nonbudgeted Capital Lease
Transactions (302,412) (302 4121
Budgetary Basis $10,117.767 $ 644.286
-21- -22-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 3 - BUDGET BASIS OF ACCOUNTING - CONTINUED
Adjustments were also necessary to convert the Special Revenue Fund excess of
revenues over expenditures and other financing sources from the GAAP basis to the
budgetary basis. The City only adopted a budget for one of the Special Revenue
Funds, the Stormwater Fund. Therefore the budget and actual amounts for Special
Revenue Funds reported on the Combined Statement of Revenues and Expenditures -
Budget and Actual - General and Special Revenue Funds, only includes the
Stormwater Fund. However, the Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - All Governmental Fund Types and Expendable Trust
Funds (GAAP Basis) includes amounts for all Special Revenue Funds.
A reconciliation of the above differences in the Special Revenue Funds is a follows:
NOTE 4 - CASH AND INVESTMENTS
Following are the components of the City's cash and investments at September 30,
1997:
Cash & Cash Equivalents
Cash With Paying Agent
Investments
Unrestricted Restricted
$ 7,864,443 $ 2,906,609
— 1,643,458
20.390.438 11,667 005
$28,254,881 $16.217,072
-23-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30,1997
NOTE 4 - CASH AND INVESTMENTS
Deposits
In accordance with GASB Statement No. 3, the City's deposits are categorized
to give an indication of the level of custodial credit risk assumed at year and.
Category 1 includes deposits which are insured or collateralized pursuant to the
Public Depository Security Act of the State of Florida. Category 3 deposits are
uncollateralized, and represent amounts wired to the City's paying agents around
September 30 for bond principal and interest payments due on October 1.
September 30, 1997
Bank Balances:
Category 1 $ 2,259,845
Category 3 1,643,458
Total Bank Balances $ 3,903.303
Carrying Amount $ 2.915.510
Investments
The City's investment policies, except for pension fund and deferred compensa-
tion assets, are governed by Stale statutes and City ordinances. City ordinance
allows investments in any financial institution that is a qualified public depository
of the State of Florida as identified by the State Treasurer, in accordance with
Chapter 280 of the Florida Statutes. Authorized investments are:
1) The State Board of Administration Local Government Surplus Funds Trust
Fund;
2) U.S. Treasury bills, notes and bonds with maturity dates of 5 years or less;
3) Insured or fully collateralized Certificates of Deposit with maturity date of 3
years or less with financial institutions qualifying as public depositories;
Total
Excess
(Deficiency)
of Revenues
Other
5) Money market funds placed with financial institutions qualifying as public
Over
Fnar=g
32,057.44
Expenditures
Sources IUses)
GAAP Basis
$ 383,297
$ (1,245,503)
Nonbudgeted Funds
(297,105)
962,646
Nonbudgeted Capital Lease
-24-
Transactions
66.498
---
Budgetary Basis
$ 152.690
$ (282.8571
NOTE 4 - CASH AND INVESTMENTS
Following are the components of the City's cash and investments at September 30,
1997:
Cash & Cash Equivalents
Cash With Paying Agent
Investments
Unrestricted Restricted
$ 7,864,443 $ 2,906,609
— 1,643,458
20.390.438 11,667 005
$28,254,881 $16.217,072
-23-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30,1997
NOTE 4 - CASH AND INVESTMENTS
Deposits
In accordance with GASB Statement No. 3, the City's deposits are categorized
to give an indication of the level of custodial credit risk assumed at year and.
Category 1 includes deposits which are insured or collateralized pursuant to the
Public Depository Security Act of the State of Florida. Category 3 deposits are
uncollateralized, and represent amounts wired to the City's paying agents around
September 30 for bond principal and interest payments due on October 1.
September 30, 1997
Bank Balances:
Category 1 $ 2,259,845
Category 3 1,643,458
Total Bank Balances $ 3,903.303
Carrying Amount $ 2.915.510
Investments
The City's investment policies, except for pension fund and deferred compensa-
tion assets, are governed by Stale statutes and City ordinances. City ordinance
allows investments in any financial institution that is a qualified public depository
of the State of Florida as identified by the State Treasurer, in accordance with
Chapter 280 of the Florida Statutes. Authorized investments are:
1) The State Board of Administration Local Government Surplus Funds Trust
Fund;
2) U.S. Treasury bills, notes and bonds with maturity dates of 5 years or less;
3) Insured or fully collateralized Certificates of Deposit with maturity date of 3
years or less with financial institutions qualifying as public depositories;
Total
4) Federal agencies and instrumentalities with maturity date of 5 years or less;
$10,771,052
5) Money market funds placed with financial institutions qualifying as public
1,643,458
depositories;
32,057.44
6) Securities of any open-end or closed-end management type investment
company or investment trust registered under the Investment Company Act
$44,471,953
of 1940, provided the portfolio of such investment company is limited to U.S.
Government obligations and to repurchase agreements fully collateralized by
such U.S. Government obligations; or
-24-
CIN OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30,1997
NOTE 4 - CASH AND INVESTMENTS - CONTINUED
PM -1-111 -r. .r,r ._
7) Repurchase agreements collateralized by U.S. Treasury Securities or U.S.
Government Agency securities.
The City's investments are categorized to give an indication of the level of risk
assumed by the City at September 30, 1997:
Category 1 includes investments that are insured or registered for which the
securities are held by the City or its agent in the City's name.
Category 2 includes uninsured and unregistered investments for which the
securities are held by a counterpary's trust department or agent in the City's
name.
Category 3 includes uninsured and unregistered investments for which the
securities are held by a counterparty, its trust department or agent, but not in the
City's name.
Investments in mutual funds and the Deferred Compensation Plan are not
required to be categorized since the investments are not evidenced by securities
that exist in physical or book entry form. As discussed in Note 1, Investments are
carried at fair value.
Following is a summary of risk levels assumed by the City at September 30,
1997:
Catexwry
Carryng
1 2 3 Amaat
Repurchase Agreements $ — $ — $ 9,499,000 $ 9,499,x00
U.S. Govemment Oblgations 16,219,996 — — 16,219,996
Pension Fund Investments:
Commingled Bond Fund 3,398,683 — — 3,398,583
Commingled Stock Fund 4.262.894 — — 4,262,894
$23,861,473 $ $9,499,000
Deferred Compensatlon Plan 1,092,244
Mutual Funds Investing In U.S. Govemrnent Securities 7083.726
$41,556,443
-25-
City OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 5 - ACCOUNTS RECEIVABLE
The following is an analysis of Accounts Receivable:
Property Taxes
Accounts Receivable
Assessments
Current
Noncurrent
Maintenance Fee
(Formerly
Guaranteed Revenue)
Other Receivables
Total
Less: Allowance for
Uncollectible Accounts
NOTE 6 - PROPERTY TAXES
All property is reassessed according to its fair value on the lien date, or January 1 of
each year. Taxes are levied on October 1 of each year. Discounts are allowed for
early payment at the rate of 4% in the month of November, 3% in the month of
December, 2% in the month of January, and 1% in the month of February. The taxes
paid in March are without discount. All unpaid taxes become delinquent on April 1 fol-
lowing the year in which they are assessed. On or around May 31 following the tax
year, certificates are sold for all delinquent taxes on real property.
The County bills and collects property taxes and remits them to the City. City property
tax revenues are recognized when levied to the extent that they result in current
receivables.
The City is permitted by the Municipal Finance Law of the State to levy taxes up to
$10.00 per $1,000 of assessed valuation. The combined tax rate to finance general
governmental services for the year ended September 30, 1997, was $4.00 per $1,000
which means that the City has a tax margin of $6.00 per $1,000 and could raise up to
$3,494,131 additional property tax revenue a year from the present assessed valuation
of $562,355,145 before the limit is reached.
-26-
Govenvitental
Fund
Fund
Fund Types
Types
Types
Spedw
Capital
Pension
General
Revenue
pro s
Enterprise
Funds
$ 1,341
$ —
$ —
$ —
$ -
-
82,944
_
531,765
—
_
—
—
60,000
-
-
_
—
251,775
—
—
—
_
51,559
—
66.708
49.265
26
435
100,169
68,049
131,309
26
895,634
100169
(4.000
M
1124.500
—
$ K049$126,309
$ 26
$7771,036
100189
All property is reassessed according to its fair value on the lien date, or January 1 of
each year. Taxes are levied on October 1 of each year. Discounts are allowed for
early payment at the rate of 4% in the month of November, 3% in the month of
December, 2% in the month of January, and 1% in the month of February. The taxes
paid in March are without discount. All unpaid taxes become delinquent on April 1 fol-
lowing the year in which they are assessed. On or around May 31 following the tax
year, certificates are sold for all delinquent taxes on real property.
The County bills and collects property taxes and remits them to the City. City property
tax revenues are recognized when levied to the extent that they result in current
receivables.
The City is permitted by the Municipal Finance Law of the State to levy taxes up to
$10.00 per $1,000 of assessed valuation. The combined tax rate to finance general
governmental services for the year ended September 30, 1997, was $4.00 per $1,000
which means that the City has a tax margin of $6.00 per $1,000 and could raise up to
$3,494,131 additional property tax revenue a year from the present assessed valuation
of $562,355,145 before the limit is reached.
-26-
CRY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 7 - PROPERTY, PLANT, AND EQUIPMENT
32.353
During the fiscal year ended September 30, 1997, the following changes in general
fixed assets occurred:
Balance
9 904,184
10-1-96 Additions
Balance
Deletions 9-30-97
Land
$ 1,312,883 $ ---
$ --- $ 1,312,883
Buildings
3,468,399 4,700
--- 3,473,099
Improvements
910,858 63,899
-- 974,757
Equipment
4.179.691 1.093.919
264.595 5.009.015
as follows:
9,781,631 1,162,518
264,595 10,769,754
Construction in
Progress
32.353
993.984
4.700
1.021.637
9 904,184
$2,156.502
269,295
$11.791,391
Construction in progress for general fixed assets as of
September 30,
1997 consisted
primarily of improvements to the Ocoee Youth Center, and construction
of two fire
stations and a public works facility.
Improvements
28,028,299
Equipment
The sources of general
fixed assets are
as follows:
Less: Accumulated Depreciation
(10.069.4811
Balance
10-1-96
Additions
Deletions
Balance
9-30-97
General Fund
$3,607,340
$1,115,913
$ 269,295
$ 4,453,958
Special Revenue Funds:
Wastewater
Fund
Total Interest Expense Incurred
Federal Revenue
Interest Associated with Construction Projects
549,933
Interest Earned in Construction Accounts
536.295
Sharing
750,610
-
---
750,610
Road Impact
127,948
---
---
127,948
Police Trust
49,922
18,934
---
68,856
Parks
106,153
56,290
---
162,443
Stcrmwater Utility
348,737
32,668
---
381,405
Fire Impact
1,050,272
27,728
---
1,078,000
Police Impact
666,834
---
---
666,834
Contributions - Other
389,745
---
---
389,745
State Grant
320,010
--
---
320,010
Capital Projects Fund
2.486.613
904,969
3.391.582
9 904 184
$2,156.502
269.29
11 791.391
-27-
CRY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 7 - PROPERTY, PLANT, AND EQUIPMENT - CONTINUED
The components of property, plant and equipment for the Proprietary
Fund Types at
September 30, 1997, are as follows:
Proprietary
Fund Tunes
Enterprise
Land and Land Improvements
$ 4,565,719
Buildings
379,339
Improvements
28,028,299
Equipment
2.884.201
35,857,558
Less: Accumulated Depreciation
(10.069.4811
$25,788,077
Proprietary Fund construction in progress at September 30, 1997, consisted primarily
of Improvements to well pump and ground storage tanks.
During the year, the City capitalized interest expense on construction in progress in
the following amounts:
Water and
Wastewater
Fund
Total Interest Expense Incurred
$ 843,146
Interest Associated with Construction Projects
549,933
Interest Earned in Construction Accounts
536.295
Net Interest Capitalized
13.538
Interest Expense
$ 829.608
-28-
CITY OF OCOEE. FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 8 - RETIREMENT PLANS
Defined Benefit Pension Plan and Trust
The City maintains two separate single employer defined benefit pension plans
for police officers and firefighters and substantially all other fulfiime City
employees which are included as part of the City's reporting entity in Pension
Trust Funds. Each Plan provides retirement, disability, and death benefits to Plan
members and beneficiaries. Florida Statutes, Chapter 175 and 1a5, establish
minimum benefit provisions. The City of Ocoee Commission appoints a board
of trustees to administer the pension trust funds. This board of trustees may not
amend any provisions of the pension plans without the approval of the City
Commission.
The investments of the pension trust funds are managed by SunTrust Bank, and
there are no undue investment concentrations. Neither plan issues a stand-alone
financial report.
The amounts legally required as of September 30, 1997 to be reserved for
general employees and police and firefighter pension funds are $3,559,952 and
$4,223,200, respectively.
Basis of Accounting - The Plans' financial statements are prepared using the
accrual basis of accounting. Plan member contributions are recognized in the
period in which the contributions are due. Employer contributions to each Plan
are recognized when due and the employer has made a formal commitment to
provide the contributions. Benefits and refunds are recognized when due and
payable in accordance with the terms of each plan.
Method Used to Value Investments - Investments are reported at fair value.
Short-term Investments are reported at cost, which approximates fair value.
Securities traded on a national or international exchange are valued at the last
reported sales price at current exchange rates. Investments that do not have an
established market are reported at estimated fair value.
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 8 - RETIREMENT PLANS - CONTINUED
Surrwnary of Sigrvficant Accounting Policies - Contiruted
Plan Descriptions
The following schedule is derived from the respective actuarial reports and
City information for the two pension plans as of October 1, 1996:
General Police and
Membership and Plan Provisions - Employees Fwefiahters
Members
Retirees and Beneficiaries
Receiving Benefits
4
3
Terminated Plan Members
Entitled to But Not
Receiving Benefits
9
4
Active Plan Members
Vested
61
42
Nonvested
49
32
123
81
-29- -30-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 8 - RETIREMENT PLANS - CONTINUED
Defined Benefit Pension Plan and Trust - ConWuied
General
Membership and Plan Provisions - Ertipk ee
Normal Retirement Benefits:
Eligibility
Age/Years of Service - Normal
Age/Years of Service - Early
Benefit - Normal
Benet - Early
Form of Benefit
Years to vest
DsalW'ty Berlefts:
Service Incurred
Non -Service Incurred
Pre-Rearerrrett Dewh Benefits:
Vested
Nonvesled
Full -Time
Employment
e0
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
Police and
The Police Officers' and Firefighters' Pension Plan funding methods and
Firefiolaem
determination of benefits payable are provided in the various acts of Florida
NOTE 8 - RETIREMENT PLANS - CONTINUED
Full -Time
Defined Benefit Pension Plaits and Trust - Conti used
Employment
from Plan members, City contributions, State contributions and income from
Service. service,
FwJ
Earlier of age 55 and 10
NI plansare contributory. The employees participating in the General
years of credited service,
Employees' Pension Plan are required to contribute 5% of their salary. The
or age 52 and 25 years
City is required to contribute at an actuarially determined rate; the current rate
of credited service.
Is 10.3% of annual covered payroll.
Age 50 and 5 years of Age 45 and 5 years of
The Police Officers' and Firefighters' Pension Plan funding methods and
credited service. credited service.
determination of benefits payable are provided in the various acts of Florida
Legislature, which created the funds, including subsequent amendments
2% Average Monthly 2.5% d Average Monthly
thereto, The Statutes provide, in general, that funds are to be accumulated
Earnings times Credited Earnings times Credited
from Plan members, City contributions, State contributions and income from
Service. service,
investments of accumulated funds. Contributions from the State of Florida are
Accrued benefit. Accrued banal[,
received under Florida Statutes, Chapters 175 and 185. The Plan members
members upon retirement.
are required to contribute 5% of their salary. The City is required to contribute
to yearCertain and Lite 10 year Certain and Life
at an actuarially determined rate; the current rate is 20.2%, including expected
Annuity. Annuity.
State contribution, of annual covered payroll.
5 years
5 years
Subsequent to September 30, 1997, the City Commission approved certain
changes to both of the pension plans. They amended the required
contribution from general employees to 7.4% and from police officers and
firefighters to 7.6%. The Commission also increased the benefit payable to
None
Accrued Benefit, but
members upon retirement.
not less than 42%
Average Monthly
Annual Pension Cost and Net Pension Obligation
Earnings.
The City has traditionally contributed the annual required contribution (ARC)
and thus has never actually had, or had need to report, a net pension
None
Accrued Benefit, but not
obligation (NPO). As discussed in Notes 1 and 18, the City implemented
leas than 25% of Average
Monthly Earnings t 10
GASB Statements No. 25 and 27 during the fiscal year ending September 30,
years credited service.
1997. At the point of transition (October 1, 1996), the City had no pension
liability reflected in either the General Long -Term Debt Account Group or any
individual fund. In accordance with GASB Statement No. 27, the City
Accrued Benefit payable
Accrued Benefit payable
calculated the potential for a net pension liability (asset) and reaffirmed that
to beneficiary for 10
to beneficiary for 10
none existed at September 30, 1997.
years.
years.
The Plans' table of required supplementary information is presented below:
Refund Accumulated
Refund Accumulated
Contributions without
Contributions without
Interest.
interest.
31-
i
-32-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 8 - RETIREMENT PLANS - CONTINUED
NOTE 8 - RETIREMENT PLANS - CONTINUED
_
Defiled Beneft Pension Plans & Trust - Continued
Defined Benefit Pension Plans and Trust - Confirmed
Notes to the Required Supplementary:darmaaon
REoUIRED SUPPI"EtTrARY INFORMATION
The information presented In the required supplementary schedules was
determined as part of the actual valuations at the date indicated. Additional
SCHEDULES
of FUNDwG PROGRESS
information as of the latest (October 1, 1996) actuarial valuation follows:
Actuarial
Accrued
URAL as
General Police and
Actuarial
UatMyy
Uerurwad
a%of
Employees F6efiahters
Actuarial
Value of
(AALi
AAL
Fulled Cms
Covered
Valuation
Assets
FJby Age
NAAU
Rasa Payrd
Peyrd
Assumptions:
Date
�—
Ib1
�_
ram IC1
f("/Cl
0 0
Investment Earnings Bh 8h
Salary Increases -
al Employees
Inflation 30.6
10101/96101
$ ,297.1 a3
$ 3,036,060
$ 738,877
75.66% $ 3,191,7ae
23.15%
6%
Merit, etc. 6%
10/01/95
1,728,549
2.460,185
731,636
70.26% 2,789,834
26.26%
ementLongeBeity,
D%
Post -Retirement Benefit 0% 0%
10/01/94
1,257,218
1,748,822
491,604
71.89% 2,548,268
19.29%
Increases
10/01/93
941.671
1.461,766
520,085
64.42% 2,262,495
22.99%
Mortality Table 1983 Group 1983 Group Annuity
10/01/92
643.547
1,193,844
550,297
63.91% 2,066,674
26.63%
Annuity Mortality Mortality Table
10/01/91
210,164
761,269
551,106
27.61% 2,246,670
24.53%
Table
Retirement Age When First When First Eligible
Poke ORicers and FinOW"n;
Eligible
10/01/9
$ 2,661,713
$ 3,488,432
$ 826,719
76.30% $ 2,428,615
34.04%
10/01/95
1,91,760
2,792,244
830,484
70.26% 2,191,537
37.90%
Actuarial Valuation:
Annual Annual
10101/94
1,416,034
2,151,118
735,082
65.83% 2,002,476
36.71%
Frequency
Cost Method Frozen Entry Frozen Entry Age
10/01/93
989,107
1,747,087
757,980
56.61% 1,706,230
44.42%
Age
10/01/92
555,482
1,329.389
773.907
41.78% 1,592.110
48.61%
Amortization Method Level Percent Level Percent
10/01/91
210,164
973,951
763.787
21.68% 1,346,39
56.73%
Amortization Period 30 Years Closed 30 Years Closed
Asset Valuation Method 4 Year 4 Year Smoothed
SCHEDULE OF
CONTRIBUTIONS
FROM THE EMPLOYER AND OTHER CONTRIBUTING ENTITIES
Smoothed Market
Market
General Employees
Police OI(was & FYerwlters
Annual
Arcual
Deferred Congpersation Plan
Year Erwad
Re**W
Percentage
Required
Percentage
The City has a single employer deferred compensation plan. The Plan is
September
corrtribtmon
coNdd,[m
CanmrbIIWn
o«mewed
voluntary and any employee may elect to participate.
1997
$
381,59
100%
$ 605.960
100%
100%,
The City offers its employees a deferred compensation plan created in accord -
1996
302,249
256,894
100%
100%
481,535
447,949
100%
ance with Internal Revenue Code Section 457. The Plan, available to all City
1995
1994
216,806
100%
262,702
/DD%
employees, permits them to defer a portion of their salary until future years. The
1993
177,101
1OD%
308,477
100%
deferred compensation is not available to employees until termination, retirement,
1882
183,911
100%
246,180
100%
death, or unforeseeable emergency.
-33-
CIN OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 8 - RETIREMENT PLANS - CONTINUED
All amounts of compensation deferred under the Plan, all property and rights
purchased with those amounts, and all income attributable to those amounts,
property, or rights are (until paid or made available to the employee or other
beneficiary) solely the property and rights of the City (without being restricted to
the provisions of benefits under the Plan), subject only to the claims of the City's
general creditors, Participants' rights under the Plan are equal to those of
general creditors of the City In an amount equal to the fair market value of the
deferred account for each participant.
It is the opinion of the City that it has no liability for losses under the Plan, but
does have the duty of due rare that would be required of an ordinary prudent
investor.
In accordance with current professional pronouncements, the City has accounted
for its deferred compensation plan as an agency fund in its financial statements.
The assets are stated at the market value which is represented by the contract
value provided by the City's third -parry administrator.
Employee contributions to the Plan for the fiscal year ended September 30, 1997
were $146,386.
-35-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30,1997
NOTE 9 - OVER 65 ASSISTANCE PROGRAM
The City of Ocoee, Florida began this program March 1, 1975. The program provides
that persons over 65 who quality are entitled to receive free water and solid waste
services subject to limitations. Approximately 440 residents of the City participated in
this program during the fiscal year ended September 30, 1997.
All expenditures under this program are shown as expenditures of the general fund.
Water Excise Tax $ 4,037
Water Fees 53,306
Solid Waste Fees 77.582
Total Over 65 Cost $ 134.925
NOTE 10 - BONDS AND NOTES PAYABLE
Summarized below are the City's bonds and notes payable outstanding at September
30, 1997:
Water and Wastewater Fund Bonds Payable
Water and Sewer System Refunding and Improvement Revenue
Bonds, Series 1993 - payable in annual installments of $105,000
to $610,000 through 2017, plus semi-annual interest at 2.60% to
5.75%.
$7,850,000
Less: Current Maturities
(215,000)
Unamortized Discounts
(97.7401
7.537.260
Water and Sewer System Improvement Revenue Bonds, Series
1997 - payable in annual installments of $120,000 to $660,000
through 2026, plus semi-annual interest at 3.60% to 5.62°/6
10,150,000
Less: Current Maturities
(120,000)
Unamortized Discounts
f126.8421
9.903.158
$17,440,418
-36-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 10 - BONDS AND NOTES PAYABLE - CONTINUED
�
Bonds Payable -
Transportation Refunding and Improvement Revenue Bands,
Series 1990 - payable in annual Installments of $125,000 to
$575,000 through 2015 with semi-annual interest pay-
ments at 6.0% to 7.5%. $ 6,050,000
Capital Improvement Revenue Bonds, Series 1991 - payable
in annual installments of $70,000 to $230,000 through
2011 with semi-annual interest payments at 5.4% to 7.5%. 2.115.000
$ 8.165.000
Notes Payable -
Stormwater Utility Revenue Promissory Note, Series 1996 -
payable In annual principal installments of $70,000 to
$205,000 through 2011 with quarterly interest payments at
4.3% initially, adjusted annually using the five-year
Eurodollar rale. $ 2,130,000
Capital Improvement Revenue Promissory Note, Series 1996 -
payable in annual principal installments of $230,000 to
$445,000 through 2012 with quarterly interest payments at
4.55% initially, increasing to 5.06% on January 1, 2007.
Interest rate reset on January 1, 2008 in accordance with
Loan Agreement. 4.840•
$ 6.970.000
Water and Sewer System Refundltg end improvement Revenue Bonds, Series 1993
In February 1993, the City issued Water and Sewer System Refunding and
Improvement Revenue Bonds, Series 1993 to finance therefunding of
$10,160,000 outstanding Series 1989A and B Water and Sewer System Revenue
Bonds.
These bonds are secured by the combined Water and Wastewater Fund
operating revenues, Interest earnings, impact fees and a first priority pledge of
cash payments due from developers.
CRY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 10 - BONDS AND NOTES PAYABLE - CONTINUED
Water and Sewer System Refunding and Improvement Revenue Bonds, Series 1993 -
Continued
The major provisions of the ordinances authorizing the revenue bonds are as
follows:
1) The City shall make monthly deposits in a sinking fund of 1/12 and 1/6 of the
next maturing principal and interest payment, respectively.
2) Each month, provisions shall be made of the gross revenues sufficient to pay,
in order of preference, cost of operation and maintenance of the systems,
then debt service/sinking fund requirements.
3) The City shall establish rates which will provide for necessary operating
expenses and 110% of the bond service requirement due that year.
4) The City shall provide for the reserve requirement,by purchasing a surety
bond.
Water and. Sewer System Improvement Revenue Bonds, Series 1997 .
In January 1997, the City issued Water and Sewer System Improvement Revenues
Bonds, Series 1997 to expand the capacity of and construct and acquire other
improvements to the City's Water and Sewer System (the "System").
These bonds are secured by prior lien upon and pledge of Net Revenues of the
System, and the Water and Sewer system development charges to the extent of
the bond service component (the "Pledged Funds"), Such prior lien and pledge
of the Pledged Funds is on a parity with the lien and pledge granted to the
holders of the City's Water and Sewer System Refunding and Improvement
Revenue Bonds, Series 1993.
The major provisions of the ordinances authorizing the revenue bonds are as
follows:
1) The City shall establish rates which will provide for necessary operating
expenses and 110% of the bond service requirement due that year.
2) The City shall provide for the reserve requirement by purchasing a surety
bond.
-37- 38-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 10 - BONDS AND NOTES PAYABLE - CONTINUED
Water and Sewer System Improvement Revenue Bonds, Sedes 1997 - Continued
3) Amounts deposited into Debt Service Fund shall be depleted at least once a
year except for any carryover amount which will not exceed greater of (a) the
earnings on such fund for the immediately preceding bond year and (b) one -
twelfth of the debt service on the Series 1997 Bonds for immediately
preceding bond year.
Floricla Transportation Refunding and Improvement Revenue Bonds, Series 1990
In September 1990, the City issued revenue bonds to finance the advance
refunding of $1,895,000 outstanding series 1987 bonds and finance the paving,
extension, and improvement of certain streets within the corporate limits.
These bonds are secured by the Local Option Gas Tax and certain local Public
Service Taxes.
The major provisions of the ordinance authorizing the revenue bonds are as
follows:
1) The City shall make monthly deposits in a sinking fund of 1/12 and 1/6 of the
next maturing principal and interest payment, respectively.
2) The City shall provide for the reserve requirement by purchasing a surety
bond.
Capital Improvement Revenue Bonds, Series 1991
In April 1991, the City issued revenue bonds to finance the construction of a new
City Hall and expansion of the Police Station.
These bonds are secured by non -ad valorem revenues of the City.
The major provisions of the ordinance authorizing the revenue bonds are as
follows:
1) The City shall make deposits on or before March 5 and September 5 to a
sinking fund such amounts sufficient to pay the next succeeding interest and
principal payments.
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 10 - BONDS AND NOTES PAYABLE - CONTINUED
2) The City shall establish a Reserve Fund and maintain the Reserve Fund
requirement of $249,945.
Stormwater Utility Revenue Promissory Note, Series 1996
In May 1996, the City issued a promissory note to finance the acquisition,
construction and improvements of certain stormwater utility capital improvements.
This note is secured by a pledge of the net revenues of the Stormwater System
levied and collected by the City.
The major provisions of the ordinance authorizing the promissory note are as
follows:
1) The City shall establish rates which will always provide net revenues in each
year suffclent to pay 115% of the debt service requirement due that year.
2) The City shall establish a Reserve Fund and maintain the Reserve Fund
Requirement of $200,000 unfit such time as the City has maintained a debt
service coverage ratio of at least 1.15 to 1.00 for two consecutive fiscal years.
Capital Improvement Revenue Promissory Note, Series 1996
In December 1996, the City issued a promissory note to finance certain capital
projects including two fire stations, a gymnasium and recreational facility, and a
public works facility.
This note is payable solely from Non -ad Valorem Revenues of the City.
The major provisions of the ordinance authorizing the promissory note are as
follows:
1) The City will not issue non -self-supporting revenue debt If after the issuance
of such debt, maximum annual debt service resulting from the total
outstanding non -self-supporting revenue debt service of the City exceeds 50%
of total general purpose Non -ad Valorem Revenues of the City received in the
immediately preceding Fiscal Year of the City. Non -self-supporting revenue
debt shall not include any debt payable from revenues of a utility system.
2) The City shall establish a Reserve Fund and maintain the Reserve Fund
Requirement of $484,000. Securities in the Reserve Fund shall be valued at
market value annually on each January 1. Deficiencies in the amounts on
deposit In the Reserve Fund resulting from a decline in market value shall be
restored no later than the succeeding interest payment date.
-39- 40-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30,1997
NOTE 10 - BONDS AND NOTES PAYABLE - CONTINUED
Following is a maturity schedule of outstanding bonds payable:
8 1$ 65.000 $6,473,545 $18.000.000$16,334,583 $48,973,128
Following is a maturity schedule of principal payments on the stormwater and capital
improvement notes payable:
Year Ended
September 30:
1998
General Long -Term
Enterprise
Funds
Total Debt
Year Ended
Sect 30:
Debt
Principal
Interest
princiloal
Interest
Service
1998
$ 270,000
$ 600,798
$ 335,000
$ 835,713
$ 2,041,511
1999
285,000
582,722
390,000
956,875
2,214,597
2000
305,000
563,308
405,000
940,315
2,213,623
2001
330,000
542,167
420,000
922,477
2,214,644
2002
350,000
519,075
440,000
903,366
4,171,931
2,212,441
11,057,906
2003-2007
2,160,000
2,175,975
1,242,375
2,550,000
3,300,000
3,424,707
10,822,082
2008-2012
2013-2017
2,855,000
1,610,000
247,125
4,330,000
2,397,562
8,584,687
2018-2022
---
---
2,865,000
1,263,012
4,128,012
2023-2027
-
2,965,000
518.625
3,483 625
8 1$ 65.000 $6,473,545 $18.000.000$16,334,583 $48,973,128
Following is a maturity schedule of principal payments on the stormwater and capital
improvement notes payable:
Year Ended
September 30:
1998
$ 340,000
1999
370,000
2000
380,000
2001
390,000
2002
405,000
Thereafter
5,085,000
$6,970,000
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 10 - BONDS AND NOTES PAYABLE - CONTINUED
During the year ended September 30,
1997, the following changes in general long-term
debt occurred: cr
Accrued
Capital
Bonds and
Notes
Annual
Leave
Leave
Lease
Oblipatlons
Payable Total
Balance at
October 1, 1996 $ 399,593
$ 1,376,532
$10,620,000 $12,396,125
Additions 76,980
Principal payments
Balance at Septem-
ber 30, 19974$ 76.573
NOTE 11 - DEBT DEFEASANCE
302,412 4,640,000 5,219,392
(535,492 (325 000) (860 492)
1 1$ 43.46 $15,135.0 $16,755,025
In 1990 the City defamed the Public Improvement Revenue Bonds, Series 1987, by
creating a separate irrevocable trust fund. New debt was issued and the proceeds
have been used to purchase U.S. government securities that were placed in the trust
fund. The investments and fixed earnings from the investments appear suffclent to
fully service the defeased debt until the debt is called or matures. For financial
reporting purposes, the debt has been considered defeased and therefore removed
as a liability from the City's General Long -Term Debt Account Group. As of September
30, 1997, the amount of defamed debt outstanding, but removed from the General
Long -Term Debt Account Group amounted to $295,500.
NOTE 12 - LEASE OBLIGATIONS
Capital Leases
The City has entered into lease agreements as lessee for financing the acquisition
of vehicles and trucks and data processing, communications, and office
equipment. These lease agreements qualify as capital leases for accounting
purposes and, therefore, have been recorded at the present value of the future
minimum lease payments as of the date of their inception in either the General
Fixed Asset Account Group or the proprietary fund types.
-42-
-41-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 12 - LEASE OBLIGATIONS - CONTINUED
Capital Leases - Ca Tt ied
Equipment under capital leases recorded in the General Fixed
Asset Account
Group at September 30, 1997 consists of the following:
Fire Trucks
$ 595,542
800 MHZ Radio System
666,834
Vehicles and Trucks
704,047
Equipment
80.297
Fund
$ 2.046.720
Debt service payments on equipment capitalized in the General
Fixed Asset
Group are recorded as expenditures in either the General Fund or the Special
Revenue Funds.
$ 235,674
The following is a schedule by years of future minimum lease payments under
capital leases, together with the present value of the net
minimum lease
payments as of September 30:
Amortization 21.038
Year Ending
69.820
September 30:
$ 186.892
1998
$ 522,967
1999
455,184
2000
232,894
2001
24.116
Total Minimum Lease Payments
1,235,161
Less, Amount Representing Interest
(91.7091
Present Value of Net Minimum
Lease Payments
$ 1,143.452
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 12 - LEASE OBLIGATIONS - CONTINUED
Capital Leases - Continued
The total of assets capitalized under lease -financing arrangements in proprietary
fund types is as follows:
Water and
Wastewater
Solid Waste
Fund
Fund
Totals
Vehicles and
Equipment $ 43,527
$ 235,674
$ 279,201
Less Accumulated
Amortization 21.038
48.782
69.820
Net Book Value $ 22,489
$ 186.892
$ 209.381
Amortization of equipment leased under capital leases is Included
in depreciation
expense.
The following is a schedule by years of future
minimum lease payments under
the above capital leases, together with the present value of the net minimum
lease payments as of September 30:
Water and
Year Ending Wastewater
Solid Waste
September 30: Fund
Fund
Totals
1998 $ 11 387
$ 53 613
$ 65.000
1999 11,387
53,613
65,000
2000 11,387
53,613
65,000
1 2001 949
27.075
28.024
Total Minimum Lease
Payments 35,110
167,914
223,024
Less, Amount Repre-
senting Interest (5.6531
(18.5731
(24.2261
Present Value of Net
Minimum lease
Payments 29,457
169,341
198 798
The current and noncurrent obligation under these capital leases are $53,538 and
$145,260, respectively.
-43- -44-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 12 - LEASE OBLIGATIONS - CONTINUED
Oparating Leases
The City leases office and computer equipment under non -cancelable operating
leases. Rental expenditures for the year ended September 30, 1997 amount to
$40,157. The following is a schedule by years of future minimum rentals on these
noncancelable leases as of September 30, 1997:
Year EndaV
September 30:
1998 $ 39,473
1999 16,733
$ 56.206
NOTE 13 - INTERFUND RECEIVABLES AND PAYABLES
The following schedule as of September 30, 1997, represents interfund receivables and
payables: trrterhirld Interfund
Fund Type
General Fund
Special Revenue Funds:
Police Training
Enterprise Funds:
Solid Waste
Pension Trust Funds:
General Employees
Police and Firefighters
NOTE 14 - RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets; errors and omissions; job-related illnesses or injuries to
employees; and natural disasters. Rick of loss from the above is transferred by the
City to various commercial insurers through the purchase of insurance. There has
been no significant reduction in insurance coverage from the previous year. There
have been no settlements In excess of insurance coverage in any of the prior three
fiscal years.
-45-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 15 - SEGMENT INFORMATION FOR ENTERPRISE FUNDS
$ 22.819
Receivables
Pavables
$ 21,392
$ ---
132 774
782
...
20,610
$ 23.354
122
122
Total
$ 21.514
$ 21,514
The City is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets; errors and omissions; job-related illnesses or injuries to
employees; and natural disasters. Rick of loss from the above is transferred by the
City to various commercial insurers through the purchase of insurance. There has
been no significant reduction in insurance coverage from the previous year. There
have been no settlements In excess of insurance coverage in any of the prior three
fiscal years.
-45-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 15 - SEGMENT INFORMATION FOR ENTERPRISE FUNDS
$ 22.819
The City maintains two enterprise
funds which provide water, wastewater, and solid
waste services. Segment information for the year ended September 30, 1997, is as
follows:
132 774
(758.18
Net Income (Loss)
Water and
$ 23.354
513148
Wastewater Solid Waste
Total
Operating Revenues
$ 4.030.639 $ 1.243.295 -
$ 5.273.934
Depreciation and Amortization
$ 1,329.432 2$ 01,955
$ 1.531.387
Operating Income
99.31$ 21.858
$ 221.177
Operating Grants
$ - $ 29•000
$ 29.000
Operating Transfers:
In
$ 22.819
$ 6.807
$ 29.626
Out
(625,4111
132 774
(758.18
Net Income (Loss)
536502
$ 23.354
513148
Current Capital Contributions
$ 798,790
$---
$. 798,790
Property Additions8$
75.2401$
43.290
$ 1.018.530
Property Deletions186.10$_5
$—_--
$ 186,105
Net Working Capital2
4$ 38.701
205.79=
2—'644.497
Total Assets
$46.506.771
804,064$47,310.835
Long -Term Debt
$17,461.433
124,245
$17.585.678
Total Equity27
435 610
5$ 89,43
$28,025.049
-46-
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 16 - CONTRIBUTED CAPITAL
The following is a summary of changes in contributed capital of the water and
wastewater fund during the year ended September 30, 1997:
Contributed Capital - Beginning of Year
Additions (Reductions)
Connection Fees
Write-off Connection Fees Billed in Prior Year
Developers
Depreciation on Contributed Assets
Contributed Capital - End of Year
NOTE 17 - SUMMARY DISCLOSURE OF SIGNIFICANT CONTINGENCIES
$23,957,113
CITY OF OCOEE, FLORIDA
NOTES TO FINANCIAL STATEMENTS - CONTINUED
SEPTEMBER 30, 1997
NOTE 18 - CHANGES IN ACCOUNTING PRINCIPLE - CONTINUED
$24.120.382
Grants
Amounts received or receivable from grantor agencies are subject to audit and
adjustment by grantor agencies. If any expenditures are disallowed as a result
of these audits, the claims for reimbursement to the grantor agency would
become a liability of the City. In the opinion of management, any such
adjustments would not be significant.
Litigation
During the ordinary course of its operations, the City is a parry to various claims,
legal actions, and complaints. In the opinion of the City's management and legal
counsel, these matters are not anticipated to have a material financial impact on
the City.
NOTE 18 - CHANGES IN ACCOUNTING PRINCIPLE
As discussed in Note 1, the City adopted GASB Statements No. 25, 27 and 31 during
fiscal year 1997. The City was required to implement GASB Statement No. 25 in 1997;
however, the City early implemented GASB Statements No. 27 and 31 since the GASB
encouraged early implementation.
The statements require a new financial statement presentation and disclosures for
pension trust funds as well as recording investments at fair value. Fund balances of
governmental funds, retained earnings of proprietary funds, and net assets held in
trust for pension benefits in pension trust funds have been restated at October 1, 1996
as follows to account for the cumulative effect of applying these Statements:
The adoption of these Statements resulted in the following increases in excess of
revenues over expenditures in governmental funds, net income In proprietary funds
and net assets held In trust for pension benefits in pension trust funds for the year
ended September 30, 1997:
Increase
General Fund
General Fund
$ (10,053)
114,180
Special Revenue Funds
(162,165)
(268 782)
Debt Service Funds
(18,619)
684,610
Enterprise Funds
(159,254)
(3661391
Pension Trust Funds
972,425
$24.120.382
Grants
Amounts received or receivable from grantor agencies are subject to audit and
adjustment by grantor agencies. If any expenditures are disallowed as a result
of these audits, the claims for reimbursement to the grantor agency would
become a liability of the City. In the opinion of management, any such
adjustments would not be significant.
Litigation
During the ordinary course of its operations, the City is a parry to various claims,
legal actions, and complaints. In the opinion of the City's management and legal
counsel, these matters are not anticipated to have a material financial impact on
the City.
NOTE 18 - CHANGES IN ACCOUNTING PRINCIPLE
As discussed in Note 1, the City adopted GASB Statements No. 25, 27 and 31 during
fiscal year 1997. The City was required to implement GASB Statement No. 25 in 1997;
however, the City early implemented GASB Statements No. 27 and 31 since the GASB
encouraged early implementation.
The statements require a new financial statement presentation and disclosures for
pension trust funds as well as recording investments at fair value. Fund balances of
governmental funds, retained earnings of proprietary funds, and net assets held in
trust for pension benefits in pension trust funds have been restated at October 1, 1996
as follows to account for the cumulative effect of applying these Statements:
The adoption of these Statements resulted in the following increases in excess of
revenues over expenditures in governmental funds, net income In proprietary funds
and net assets held In trust for pension benefits in pension trust funds for the year
ended September 30, 1997:
Increase
General Fund
$ 31,284
Special Revenue Funds
318,770
Debt Service Funds
8,866
Capital Projects Funds
45,811
Enterprise Funds
342,240
Pension Trust Funds
1,271,051
NOTE 19 - COMMITMENTS
At September 30, 1997, the City had entered into contracts totaling $762,683 related
to projects for improvements to the City's Water and Sewer System. In addition, the
remaining commitment on the contract for construction of the two fire stations is
approximately $753,300 at September 30, 1997.
-47- -48-
COMBINING AND INDMDUAL FUND
AND ACCOUNT GROUP STATEMENTS
These financial statements provide a more detailed view of the "General
Purpose Financial Statements" presented in the preceding subsection.
Combining statements are presented when there are more than one fund
of a given fund type.
This page intentionally left blank.
Ocoee
O � o
� n
Fq
OF Ge0�
�W
GENERALFUND
The General Fund is the principal fund of the City and is used to account
for all activities not Included in other funds.
This page intentionally left blank.
Ocoee
O
n
4 Of G000
w
IF
CITY OF OCOEE, FLORIDA
CITY OF OCOEE FLORIDA
GENERAL FUND
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES
STATEMENT OF REVENUES, EYPENDr1URES AND
AND CHANGES IN FUND
BALANCE - BUDGET AND ACTUAL
CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 1997
FOR THE
YEAR ENDED SEPTEMBER 30.
1°97
Variance
v2nQ`1(;e
Favorable
Favorable
Budget
Actual
(Unfavorable)
Budget
Actual
(Urdavomble)
EXPENDITURES
REVENUE
Tawas
Property Taxes
$ 2,240,210
$ 2,243,488
$ 3,278
General Garer"mert
Legislative
$ 125,431
663,569
$ 99,763
495,235
$ 25,666
68,334
Franchise Taxes
1,161,000
1,145,834
(15,166)
Executive
Finance And Administrative
877,579
a28,435
49,141
Utility Taxes
1.513.300
1,577,270
63 970
Legal
232,000
221,646
10,352
4,914,510
4 966.592
52.082
Planning And Zoning
411,240
379,535
31,705
General Government
593,252
316.383
246,749
161.337
346,503
155,046
Licenses And hermits
Building Maintenance
Building Permits
502,700
629,201
126,501
3119.454
2432.702
686,752
Occupational License
238,200
250,449
12,249
Public Safety
740.9
879 650
138.750
law Entorcement
3,039,984
2,750,322
289,662
Fire Control
2,434,625
694.935
2,302,194
644.210
132,431
50.726
Intergovernmental Revenues
Protearve Inspections
Cigarette Tax
96,900
95,635
(1'265)
11,778
6169.544
5696.726
472,818
State Revenue Sharing
508,000
519,778
Sales Tax
2,095,000
2,138,419
43,419
Physical Ewiro °"max
Roads And Streets
1,413,107
1.162.242
250.865
Other State Shared Revenue
49,100
36,588
(12,512)
County 60 Gas Tax
368,000
386,850
66,347
18,850
(42,653)
Arid
parks
677,515
466.722
190.793
Other County Shared Revenue
109,000
And Recreation
Federal Grants
206,070
124,565
(81.5051
-
3.432.070
3,368,182
(63.888)
Debt Service
-
299,171
(299.171)
Principal Retirement
40204
(402041
Imaest And Fiscal Charges
Charges For Services
FireContract,
117,260
114,188
(3,072)
-
-
339.375
339375
Program Activity Fees
56,750
8.1
85,943
7,988
- 29,193
(162)
Total Ewes
11,379,620
10117,767
1 261.853
City Staff Charges
162.160
208.119
25.96
. .
Excess (Defitlerwy) q Revatttes
(1,797,
(309,e9a1
1,487.75
Fines And Forteiares
Fines And Forfeitures
97 000
75 483
(21.5171
Over Expattlirxas
O
Other Finaradrlg Sodrcer, Mae)
Operating Transfers in
1,831,130
(893 5001
1,633,763
(989.4771
(197,367)
(105.97
Investment Income
Operating Twisters Out
Investment Income
85.000
146357
61,357
Net SOOnhaxis �
947.630
644280
(303344)
Miscellaneous RaverlueS
5,320
Excess patimerwy) Of Rewarder,
Zoning And Election Fees
30,000
35,320
27.834
And Omer Sources Ova Expand -
334,406
1,184,406
Other
100.3
128.184
dam and Other Uses
(6501000)
130.350
163.504
33,154
Fund Balance - Beginning Of Year,
feso.000l
1 621.723
n1.7z3
Total Revenues
9$ ,581,990
$ 9.807.887
225,897
As Restated
Fund Balance - End of Year
$ -1$
,956.129
$1,956,129
-49-
-5p
4W
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues from specific taxes or other
earmarked revenue sources which because of legal or regulatory provisions or administrative
action are designed to finance particular functions or activities of government and which,
therefore, cannot be diverted to other uses.
Description Of Funds
Road knpact - Accounts for the Road Impact fees collected and for dis-
bursements made for the purpose of planning, acquisition,
expansion, and development of off-site improvements to the
road system.
Parks - Accounts for the land and/or money received from owners
or developers as a recreational facilities assessment when
lands are subdivided within the City. Funds must be used
for the improvement or expansion of City parks.
Stormwater - Accounts for the Stormwater Utility Fee revenues and the
related expenditures for drainage, stormwater, and other
related projects.
Interim Services - Accounts for impact fees collected and for disbursements
made for the purpose of providing additional municipal
services to new development within the City.
Police Trainung - Accounts for the revenues received pursuant to F.S.
943.25(8) which Imposes a $2.00 court cost against every
person convicted for violation of state penal or criminal
statute or convicted of a municipal or county ordinance
violation where said offense occurred within the City of
Ocoee. Funds must be used to educate and Vain law
enforcement personnel.
Police Trust - Accounts for the proceeds from property confiscated in
police enforcement activities pursuant to F.S. 932.707
(Florida Contraband Forfeiture Act). Funds must be used for
police operations.
Fire Impact - Accounts for Fire Impact fees collected and for disburse-
ments made for the purpose of acquisition of facilities and
equipment determined to be needed to provide fire protec-
tion for new development within the City.
Police knparx - Accounts for Police Impact fees collected and for disburse-
ments made for the purpose of acquisition of facilities and
equipment determined to be needed to provide police pro-
tection for new development within the City.
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Ocoee
O� T
o
a
Cf~rF4 Of 0000 ��,\u
CIN OF OCOEE, FLORIDA
COMBINING BALANCE SHEET
ALL SPECIAL REVENUE FUNDS
SEPTEMBER 30, 1997
Assets
Cash And Cash Equivalents
Investments
Receivable - Net
Total Assets
Liabilities And Fund Balances
Liabilities
Accounts Payable
Due to Other Funds
Deferred Revenue
Total Liabilities
Fund Balances
Unreserved:
Designated For Subsequent
Year's Budget
Total Fund Balances
Total Liabilities And
Fund Balartces
a
5543.043 622.808
170.621
15.833
12.163
29.233
1,869.020
217.959
8480.680
Total
Road
15.833
12.163
Intedm
Police
Police
Fre
Police
Special
Revenue
Impact
Parks
Stormwater
Services
Traininc
Trust
Impact
Impact
Funds
217.95
8 613 496
$ 1,368,332
$ 363,222
$ 70,803
$ 15,833
$ 12,945
$ 29,233
$ 879,833
$ 145,302
$ 2,885,503
4,225,457
268,466
48,438
---
---
---
986,666
72,657
5,601,684
49.265
---
74.523
---
2.521
---
126.309
5.643 054
631,688
$ 193.764
15.83
12,945
29,233
$ 1.869.020
217,959
8.61$A96
$ 100,011
$ ---
$ 23,143
$ ...
$ ...
$ ...
$ ---
$ ---
$ 123,154
'--
782
...
---
782
._
8.880
..-
---
8.880
100.011
8.880
23.143
---
782
---
---
---
132.816
5543.043 622.808
170.621
15.833
12.163
29.233
1,869.020
217.959
8480.680
5,543.D43 622.808
170.621
15.833
12.163
29.233
1.869.020
217.959
8,480.68
$5,643.0 54 631,688
$ 193.764
15,833
12,945
29,233
$ 1.869.020
217.95
8 613 496
-51- -52-
.53. .54-
CRY OF OCOEF, FLORIDA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES
AND CHANGES IN FUND BALANCES
ALL SPECIAL REVENUE FUNDS
FOR THE
YEAR ENDED SEPTEMBER
30.1997
Taal
Spatial
Road
krertn
Poke
Police
Fre
Police
Revalue
6ruw
Parka
Stmnwater
Services
Tralninp
Trust
Impact
Impact
Funds
Revenlae
Imergovenxrrental Revenues
- $ —
$ 2,348
$ —
$ —
$ —
$ —
$
$ 7,370
$ 9,718
Fines And Forfeitures
—
—
—
—
1,242
3,688
—
—
4,830
Impact Fees/Special Assessmems
1,298.620
261,430
804,199
59,371
—
—
415,633
132,823
2,972,076
Investmem Income
415,457
43,917
10,197
968
642
2,100
146,289
10,756
630.326
Miscellaneous Revenues
—
—
—
308.323
—
308,323
Total Revarces
1.714.077
307.695
814.396'
60.339
1.884
5,688
870.245
150.949
3.925.273
tae
Curlew
Public Safety
—
—
—
—
20,717
526,762
—
547,479
Physical Envirmmem
2,023,446
-
645,398
—
—
—
—
—
2,668,844
Culture And Recreatim
—
56.290
—
—
—
—
—
—
56,290
Debt Service:
Principal Retiremam
—
—
67,633
—
—
—
168,688
—
236,321
Imerest And Fiscal Charges
—
—
15.173
—
—
—
17.869
—
33.042
Taal Exper dRrae
2.023.446.
56.290
728.204
—
—
20.717
713.319
—
3.541.976
Excess Paticiar") Of Revaces
Over Expmdmrae
(309.3691
251.405
86,192
60,339
1.884
(15.0291
156.926
150.949
383.297
Other Fgmncirg Sakes (Uses)
Operating Transfers Out
629253
(118.1001
(282,8571
50874
—
—
(63.5801
(100.6391
(1.245.5031
Net alter FiarmQ
Sources(Uses)
629253
(118.1001
(282.8571
50874
—
—
(63.5801
(100.8391
(1.245.5031
Eroass pdic erx.Y) Of Reverses
And Otto Firw"Q Sources
Over Expeaimses And Other
FrW"Q flees
(938,622)
133,305
(196,665)
9,465
1.884
(15,029)
93,346
50,110
(862,206)
Fmtl Balances - Begirnng Of Year
As Previously Reported
6,549,771
500,818
367,286
5,368
10,279
44,262
1,815,177
167,849
9,461,810
Prior Period Adjustmem
11134
(11,315
—
—
—
—
(39,SW1
—
(162.1651
As Restated
6.438.424
489.503
367,286
6,368
10.279
44.262
1.775,674
167.849
9,299.645
Residual Equity Transfer In
43.241
—
—
—
—
—
—
43.241
Fund Balances - End of Year5$
,543,043
622,808
170.621
15,833
12 16)
$ 29.233
1,869,020
217 959
$8,480,680
.53. .54-
Iry
DEBT SERVICE FUNDS
The Debt Service Funds are used to account for the accumulation of resources for the
payment of interest and principal on all general long-term debt other than that payable from
Proprietary Funds.
Transportation RefiuWktg - Accounts for the principal and Interest payments on the 1990
and Improvement Transportation Refunding and Improvement Revenue Bonds
Revenue Bonds which funded the design, construction, paving and improve-
ment of roads and related drainage improvements within the
City.
Capital Improvement - Accounts forthe principal and Interest payments on the 1991
Revenue Bonds Capital Improvement Revenue Bonds which funded the
construction of the new City Hall and the expansion of the
police department facility.
Stonnwater Revenue - Accounts for the principal and interest payments on the 1996
Promissory Note Stormwater Revenue Promissory Note issued to acquire,
construct, and improve certain stormwater utility capital
improvements.
Capital Irnprovernent - Accounts for the principal and Interest payments on the 1996
Revenue Promissory Capital Improvement Revenue Promissory Note issued to
Note finance certain capital projects including two fire stations, a
gymnasium and recreational facility, and a public works
facility.
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Ocoee
0 T
I �o
n
., o
!q Jr 0000 �\
wr
Assets
Cash And Cash Equivalents
Restricted Assets:
Investments
Cash With Paying Agent
Trial Assets
Liabilities And Fund Balances
I-mbileia9
Matured Bonds Payable
Matured Interest Payable
Total Liabilities
Fund Balances
Reserved For Debt Service
Total Liabilities And
Fund Balances
CITY OF OCOEE, FLORIDA
COMBINING BALANCE SHEET
ALL DEBT SERVICE FUNDS
887EMBER 3D, 1997
Transportation
Capital
Sloarevriter
Capital
Ynporerner[
Refunding And
Ynpovemerd
Revenue
Revenue
Total
4npwernert
Revenue
Rmi'ssary
Prmussory,
Debt Service
Revenure Bards
Soods
Note
Nae
Funds
$ 31,992
$ 88,644
$ 15,174
It 60,557
$ 196,367
-
229,286
207,620
396,983
833,789
394.011
169.795
202.271
55.055
821132
$ 426,003
$ 487.725
It 424,965
$ 512,595
It 1,851,288
I
468.498
159.590
132.271
$ 165,000 $ 90,000 It 70,000 $ - $ 325,000
229.011 79.795 132.271 55.055 496.132
394.011 169.795 202.271 55.055 821.132
31.992 317.930 222.694 457.540 1.030.156
$ 426.003 $ 487,725 $ 424,965 $ 512,595 $ 1.851.268
.55.
CITY OF OCOEE, FLORIDA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES W FUND BALANCES
ALL DEBT SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 3% 1997
Capital
Traspatation Capital Smm vaw 4nprovWWK
Refunding And ynprwerrrer[ Revenue Revenue Total
inprove Revenue Pranea:ary Pronaaary Debt Service
Revenue BarWs Bonds Nate Note Funds
Revenues
Investment Income
$ 9.940
$ 17.111
It 17.775
S 17.542
5 62.368
Total Revenues
9.940
17.111
17.775
17.542
62.368
Debt Service:
Bond Principal Payments
165,000
90,000
70,000
-
325,000
Bond Interest and Fiscal
Charges
468.498
159.590
132.271
181.682
932.041
Taml ENXWKW rrav
623.498
249.590
202.271
/81.682
1.257,041
Excess (Defwiawy) Of Revenues
Ova EVend@IYes
(613.558)
(232.4791
(184.496)
(164.1401
(1,194.6731
Other Fhar"V Sources
Operating Transfers In
623,022
249,590
203,452
181,680
1,257,744
Bond Proceeds
440.000
440.000
Total Other
FwMn=V Sorecas
623.022
249.590
203.452
621.680
1,697.74a
Excess ot Flm sn nes And COW
FkmncM Surras Over
EVerM4nes And Older
Finar"Q Uses
9,464
17,111
18,956
457,540
503,071
Fund Balames - Begi " of Year
As Prevlou Reported
22,528
319,438
203,738
-
545,704
Prior Period Adjustment
-
(18.6191
-
-
(18,6191
As Restated
22.528
300.819
203.738
-
527.085
I Fund Balances - End Of Year $ 31,992 $ 317,930 $ 222.694 $ 457,540 $ 1.030.156
Sg
WI
CAPITAL PROJECTS FUNDS
The Capital Projects Funds account for all resources used for the acquisition and/or
-
construction of capital facilities by the City except for those financed and accounted for in the
This page intentionally left blank.
Proprietary and certain Fiduciary Funds.
Description of Funds -
Ocoee
Road Construction - Accounts for the portion of building permits designated to
fund design, and improvement of
�� o
the construction, paving
e
White Road in connection with the. West Oaks Mall construc-
tion project.
�F4
or
City Hall/Police Depart- - Accounts for the proceeds of the 1991 Capital Improvement
a000
_
morn Constr=ion Revenue Bonds to fund the construction of a new City Hall
and expansion of the police department facility.
i
- -
Stormwaterlmprovemant - Accounts for the proceeds of the 1996 Stormwater Revenue
Promissory Note issued toacquire, construct, and improve
certain stormwater utility capital Improvements.
Computer Acquisition - Accounts for funds budgeted for the acquisition and instal-
lation of a new computer system.
Capital Improvement - Accounts for the proceeds of the 1996 Capital Improvement
Revenue Promissory Note Issued to finance certain capital
projects including two fire stations, a gymnasium and
recreational facility, and a public works facility.
CRY OF OCOEE, FLORIDA
COMBINING BALANCE SHEET
ALL CAPITAL PROJECT FUNDS
SEPTEMBER 30, 1997
-57 -58-
CAy Hall/
Total
Road
Police Dept
Stormwater
Capital
Capital Project
Construction
Construction
Improvement
Acquisition
Improvements
Funds
Assets
Cash and Cash Equivalents
$ 370,307
$ 2,720
$ 1,034,035
$ 144,312
$ 1,816,447
$ 3,367,821
Investments
--
---
594,514
---
1,992,014
2,586,528
Accounts Receivable
26
---
---
26
Total Assets
370,333
$ 2.720
$ 1,628.549
$ 144.312
$ 3.808,461
$ 5.954.375
Liabilities And Fund Balance
Liabilities
Accounts Payable
$ ---
$ ---
$ 8,192
$ --
$ ---
$ 8,192
Retainage Payable
55.594
1.214
9.266
66.074
Total Liabilities
55.594
1.214
17,458
74.266
Fund Balance
Unreserved - Designated
For Capital Projects
314.739
1.506
1,611,091
144.312
3.808,461
5880.109
Total Liabilibas And
Fund Balance
$ 370,333
$ 2.720
$ 1,628.549
$ 144.312
$ 3.808,461
$ 5,954,375
-57 -58-
CITY OF OCOEE, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
AND CHANGES IN FUND BALANCES
ALL CAPITAL PROJECT FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 1997
-59- -60-
City Hyl/
Total
Road
Police Dept
Storm Vater
Computer
Capital
Capital Project
Construction
Construction
Improvement
Acouisition
Improvements
Funds
Revenues
Building Permits
$ 8,252
$ ---
$ ---
$ --
$ ---
$ 8,252
Investment Income
27,286
1,394
98,052
17,700
208,836
353,268
Miscellaneous Revenues
900
900
Total Revenues
35.538
1.394
98.052
17.700
209.7$6
362.420
Expenditures
Capital Outlay:
General Government
---
9,907
---
364,810
---
374,717
Public Safety
--
7,060
---
---
715,048
722,108
Physical Environment
284,293
---
400,814
---
14,128
699,235
Culture & Recreation
--
---
---
---
72.099
72.099
Total Expenditures
284.293
16.967
400.814
364.810
801.275
1.868.159
Excess (Deficiency) Of Revenues
Over Expenditures
(248.7551
(15.5731
(302.762)
(347,1101
(591.5391
(1,505.739)
Other Finartcing Sources (Uses)
Operating Transfers In
---
---
100,000
---
100,000
Operating Transfers Out
(16,472)
---
(1,012)
(10,485)
---
(27,969)
Promissory Note Proceeds
—
-
-
—
4.400.000
4.400.000
Net Otlrer Financing
Sources (Uses)
(16.472)
--
(1.0121
89.515
4.400.000
4,472.031
Excess (Def wiry) Of Reverues
Arid O@ner Financing Sources
Over FxperdiGues And Othar
Financing Uses
(265,227)
(15,573)
(303,774)
(257,595)
3,808,461
2,966,292
Furl Balances - Beginning Of Year
579.966
17.079
1.914.865
401.907
2.913.817
Fund Balances - End Of Year
$ 314.739
$ 1.506
$ 1.611.091
$ 144,312
$ 3,808,461
$ 5.880.109
-59- -60-
ENTERPRISE FUNDS
Enterprise Funds are used to account for operations that are financed and operated in a
manner similar to private business enterprise or where the City has decided that periodic
determination of net income is appropriate for capital maintenance, management control,
accountability, public policy, or other purposes.
Water and Wastewater - Accounts for the operations of the City's water system and
wastewater collection and treatment plant which provides
water and wastewater service to the residents of the City. All
activities necessary to provide such service are accounted
for In this fund.
Solid Waste - Accounts for the collection of commercial and residential
garbage which Is disposed of at a county landfill. All
activ0ies necessary to provide such service are accounted
for in this fund.
This page intentionally left blank.
Ocoee
O
I 4
v O
R of GO��
CITY OF OCOEF- FLORIDA
COMBINING BALANCE SHEET
ALL ENTERPRISE FUNDS
SEPTEMBER 30, 1997
-62-
61-
Water
Taal
and
-
Enterprise
Wastewater
Solid Waste
Funds
ASSETS
Cunant Assets
Cash And Cash Equivalents
$ 611,955
$ 132,850
$ 744,805
Investments
1,809,700
46,395
1,856,095
Receivables (Net Of Allowance
$ 228,366
$ 1,805
S 230,171
For Uncollectibles)
410,554
108,705
519,259
Inventory - Materials
22.152
-
22,152
Due From Other Governments
-
8226
8,226
Tay Carat Alias
2,854,361
296.176
3.150,637
Restricted Assets
Cash And Cash Equtvalents
2,810,666
95,943
2,906,609
Investments
10,833,216
-
10,833,216
Cash With Paying Agent
822326
-
822.326
Tay Restricted Assets
14 466.208
95.943
14 562151
Feted Assets
Property, Plant And Equipment
34,5,625
1,320,933
35,857,558
Less: Accumulated Depreciation
(9,160,493)
(908,988)
(10,069,481)
Construction In Progress
2.969.186
-
2,969,166
Tay Feed Asses - I4et
28 345.318
411.945
28.75T263
Odw Assets
Assessments Receivable
251,775
-
251,775
Unamort¢ed Bond Issuance Costs
689.109
-
589109
Total Odra Assets
840.884
-
840.884
Total Assets
$ 46.506,771
$ 804.0647$ti
,310,635
-62-
61-
Tata)
Water and
-
Enterprise
Wastewater
Solid Waste
Funds
LIABILITIES AND FUND EQUITY
Current L abitim (Payable
Fran Current Assets)
$ 228,366
$ 1,805
S 230,171
Accounts Payable
139,850
22,969
162,719
Accrued Expenses
-
20,610
20,610
Due To Other Funds
39,002
Deferred Revenue
38,002
8,442
-
45.096
63.538
Obligations Under Capital Leasas
Total Currant Liabilifies (Payable
415.660
90.380
506.040
From Curtert Assets)
Current Llalblities (Payable Fran
Restricted Asses)
344,224
Customer Deposits
344224
27,518
Retainage Payable
27,518
-
487,326
Accrued Interest Payable
487,326
-
335.000
Revenue Bonds Payable
335.000
-
Total Carat Liaht"lites (Payable
1 194.060
From Restricted Assets)
1,194,068
-
LongiYrm Liabilities
Revenue Bonds Payable
17,440,418
-
17,440.418
Obligations Under Capital Leases
21,015
124.245
145.260
Tay Long -Tenn Uab9mas
17 461.433
124.245
17.585.678
Tay Liabill
19 071.161
214.625
19,285.7a6
Fund Equity
Contributed Capital
24.120.382
-
24 120.382
Retained Earnings:
Ressrved For Rerrewy
1,638,008
95,943
1,733,951
And Replacarent
1.677.220
493.496
2170.716
Uae act
Tay Retailed Ealmgs
3.315.228
589,439
3,904,667
Tay Fund Equity
27 435.610
589.439
28 025.049
Taal U babies & Fund Equity
6 506.771
$ 804.1164
47,310,835
-62-
61-
CITY OF OCOEF— FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES W RETAINED EARNINGS
ALL ENTERPRISE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,19W
-63-
Total
Water and
Enterprise
Wastewater
Solid Waste
Funds
Operadrg Ravvcues
User Charges
$ 4.030.639
$ 1,243.295
$ 5,273.934
Operamm EXP—
Personal Services
1,514,777
404,805
1,919,582
Materials And Supplies
383,422
359,960
743,382
Heat, Light And Parer
340,860
—
340,850
Depreciation And Amortization
1,329,432
201,955
1,531,387 1
Other Expenses
362,839
148,978
5.739
511,817
5,739
This intentionally left blank.
Recycling Expenses
—
page
TOW Op -"Q Egrerses
3.931.320
1.121.437
5.052.757
OCOO9
OP --"V In— (Lass)
99.319
121.858
221.177
O\
0
ues
Grant Revenue
29,000
29,000
f
0
�
Investment Income
865,103
9,096
874,199
91f4�
Interest Expense
(829,608)
(10,633)
(840,241)
of 0000
Loss on Sale of FLxed Assets
(68.7241
(68.724)
Total NanoperaGrg Revenues (Fxpersas)
(332291
27.463
(5.7661
income Before OPeratirg Trarmfors
66,090
149,321
215,411
Operatrg Transfers
Operating Transfers In
22,819
6,807
29,626
Operating Transfers Out
(625,4111
(132.774)
(758,185)
Net Opaablg Transfers
(602,5921
(125.9671
(728,559)
Not hrcocne (Lass)
$ (536.502)
$ 23.354
$ (513,148)
D'spesoal Of Nat inconne (Lass)
Net Incase (Loss)
$ (536,502)
$ 23,354
$ (513,148)
Depreciation On Contributed Assets
366.739
—
366.739
Net hoeane (Deaeaee) In
Retained EarnffW
(169,763)
23,354
(146,409)
Retained Eamrgs - Beg"WIg Of Year
As Prevlousty Stated
3,644,245
566.085
4,210,330
Prior Period Adjustment
(159,2541
—
(159.2541
As Restated
3.484,991
566.085
4.051.076
Retained Earnings - End of Year
3,315,228
$ 589,439
$ 3.904.667
-63-
CITY OF OCOEE, FLORIDA
Pricing Summary
$ 19,2555000
TRANSPORTATION REFUNDING AND IMPROVEMENT REVENUE BONDS,
SERIES 1998
October 5, 1998
Prepared By:
F N Capital Markets
CITY OF OCOEE FLORIDA
L
$1992559000
TRANSPORTATION REFUNDING AND IMPROVEMENT REVENUE BONDS,
SERIES 1998
PRICING SUMMARY TABLE
Issue Size
$19,255,000
Dated Date
October 1, 1998
Pricing Date
October 5, 1998
Settlement Date
October 20, 1998
Ratings
AAA/AAA (MBIA Insured)
Underlying Rating
None
Interest Rates/Yields
3.35% -4.76%
Final Maturity
October 1, 2028
Par Amount Refunded
$ 4,200,000
Interest Rates on Prior Bonds
6.90% - 7.50%
Maximum Annual Debt Service
$1,299,940.00
Present Value Savings
$ 809,841.00
Present Value Savings of Bonds
Refunded
19.282%
Construction Proceeds
$ 13,860,000
Net Interest Cost
4.613%
True Interest Cost
4.701%
All in Cost
4.864%
Arbitrage Yield
4.737%
pIWN Capital Markets
L
L
CITY OF OCOEE, FLORIDA
$1992559000
TRANSPORTATION REFUNDING AND IMPROVEMENT REVENUE BONDS,
SERIES 1998
Term Sheet
Maturity
Principal
Interest Rate
Yield
1999
$150,000
3.35%
3.35%
2000
305,000
4.50
3.45
2001
315,000
3.50
3.50
2002
325,000
3.50
3.55
2003
335,000
3.60
3.60
2004
350,000
4.50
3.65
2005
365,000
3.70
3.75
2006
380,000
3.80
3.80
2007
395,000
3.80
3.85
2008
410,000
3.90
3.95
2009
420,000
4.00
4.05
2010
440,000
4.10
4.15
2011
460,000
4.25
4.30
2012
480,000
4.30
4.40
2015
1,565,000
4.50
4.60
2026
6,865,000
4.50
4.75
2028
5,695,000
4.50
4.76
FIWN Capital Markets
A
CITY OF OCOEE, FLORIDA
$1992559000
TRANSPORTATION REFUNDING AND IMPROVEMENT REVENUE BONDS,
SERIES 1998
OPTIONAL CALL FEATURES
Redemption Period
Redemption Price
October 1, 2008 - September 30, 2009
101
October 1, 2009 - and thereafter
100%
$1,565,000 - 2015 TERM BOND REDEMPTION
Maturity
Principal
2013
500,000
2014
520,000
2015
545,000
$6,865,000 - 2023 TERM BOND REDEMPTION
Maturity
Principal
2016
730,000
2017
765,000
2018
800,000
2019
835,000
2020
875,000
2021
910,000
2022
955,000
2023
995,000
p0N Capital Markets
11
r
CITY OF OCOEE FLORIDA
$5,695,000 - 2028 TERM BOND REDEMPTION
Maturity
Principal
2024
1,040,000
2025
1,090,000
2026
1,135, 000
2027
1,190,000
2028
1,240,000
F�v Capital Markets
I
William R Hough A Co. -JS
Public Finance
14
File = OCOM-OCOM&WM-Issue Summary
10/ 5/1998 2.•57 PM
CITY OF OCOEE, FLORIDA
TRANSRORTATION REFUNDING AND IMFROVEMENT REVENUEBONDS, SERIES 1998
REFUNDING AND NEW MONEYBONDS
(73.757% OFCALLABLEBONDS ONLY - 30 YEAR BOND ISSUE)
NET DEBT SERVICE SCHEDULE
Date
Principal
Coupon
Interest
Total P+I
Existing DIS
Net New DIS
10/01/1999
150,000.00
3.350%
838,560.00
988,560.00
308,357.50
1,246,396.39
10/01/2000
305,000.00
4.500%
833,535.00
1,138,535.00
160,592.50
1,299,127.50
10/01/2001
315,000.00
3.500%
819,810.00
1,134,810.00
162,092.50
1,296,902.50
10/01/2002
325,000.00
3.500%
808,785.00
1,133,785.00
163,215.00
1,297,000.00
10/01/2003
335,000.00
3.600%
797,410.00
1,132,410.00
163,835.00
1,296,245.00
10/01/2004
350,000.00
4.500%
785,350.00
1,135,350.00
164,090.00
1,299,440.00
10/01/2005
365,000.00
3.700%
769,600.00
1,134,600.00
163,980.00
1,298,580.00
10/01/2006
380,000.00
3.800%
756,095.00
1,136,095.00
163,505.00
1,299,600.00
10/01/2007
395,000.00
3.800%
741,655.00
1,136,655.00
162,625.00
1,299,280.00
10/01/2008
410,000.00
3.900%
726,645.00
1,136,645.00
161,250.00
1,297,895.00
10/01/2009
420,000.00
4.000%
710,655.00
1,130,655.00
164,500.00
1,295,155.00
10/01/2010
440,000.00
4.100%
693,855.00
1,133,855.00
162,000.00
1,295,855.00
10/01/2011
460,000.00
4.250%
675,815.00
1,135,815.00
164,125.00
1,299,940.00
10/01/2012
480,000.00
4.300%
656,265.00
1,136,265.00
160,500.00
1,296,765.00
10/01/2013
500,000.00
4.500%
635,625.00
1,135,625.00
161,500.00
1,297,125.00
10/01/2014
520,000.00
4.500%
613,125.00
1,133,125.00
161,750.00
1,294,875.00
10/01/2015
545,000.00
4.500%
589,725.00
1,134,725.00
161,250.00
1,295,975.00
10/01/2016
730,000.00
4.500%
565,200.00
1,295,200.00
-
1,295,200.00
10/01/2017
765,000.00
4.500%
532,350.00
1,297,350.00
-
1,297,350.00
10/01/2018
800,000.00
4.500%
497,925.00
1,297,925.00
-
1,297,925.00
10/01/2019
835,000.00
4.500%
461,925.00
1,296,925.00
-
1,296,925.00
10/01/2020
875,000.00
4.500%
424,350.00
1,299,350.00
-
1,299,350.00
10/01/2021
910,000.00
4.500%
384,975.00
1,294,975.00
-
1,294,975.00
10/01/2022
955,000.00
4.500%
344,025.00
1,299,025.00
-
1,299,025.00
10/01/2023
995,000.00
4.500%
301,050.00
1,296,050.00
-
1,296,050.00
10/01/2024
1,040,000.00
4.500%
256,275.00
1,296,275.00
-
1,296,275.00
10/01/2025
1,090,000.00
4.500%
209,475.00
1,299,475.00
-
1,299,475.00
10/01/2026
1435,000.00
4.500%
160,425.00
1,295,425.00
-
1,295,425.00
10/01/2027
1,190,000.00
4.500%
109,350.00
1,299,350.00
-
1,299,350.00
10/01/2028
1,240,000.00
4.500%
55,800.00
1,295,800.00
-
1,295,800.00
Total 19,255,000.00
-
16,755,635.00 36,010,635.00 2,909,167.50 38,869,281.39
William R Hough A Co. -JS
Public Finance
14
File = OCOM-OCOM&WM-Issue Summary
10/ 5/1998 2.•57 PM
Project No.:
Designed:
Drawn:
Checked:
Date:
Revisions:
Sheet No.:
Agenda 10-06-98
Item VI B 2
1 OF 2
,Agenda 9-15-98
Item VII A 2