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HomeMy WebLinkAboutCity of Tamarac Resolution R-2018-059TEMP RESO. #13115 PAGE 1 CITY OF TAMARAC, FLORIDA RESOLUTION NO. R-2018 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $19,000,000 IN AGGREGATE PRINCIPAL AMOUNT CITY OF TAMARAC, FLORIDA CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 2018 FOR THE PURPOSE OF FINANCING AND/OR REIMBURSING THE COST OF ACQUIRING, DESIGNING, CONSTRUCTING, RECONSTRUCTING AND EQUIPPING OF VARIOUS CAPITAL IMPROVEMENTS OF THE CITY, INCLUDING WITHOUT LIMITATION CAPITAL IMPROVEMENTS TO THE CITY'S SOUND WALLS, FIRE STATION AND. PARKS AND RECREATION; COVENANTING TO BUDGET AND APPROPRIATE LEGALLY AVAILABLE NON -AD VALOREM REVENUES TO PROVIDE FOR THE PAYMENT THEREOF; MAKING CERTAIN COVENANTS AND AGREEMENTS FOR THE BENEFIT OF THE HOLDERS OF SUCH BONDS; AUTHORIZING CERTAIN OFFICIALS AND EMPLOYEES OF THE CITY TO TAKE ALL ACTIONS REQUIRED IN CONNECTION WITH THE SALE, ISSUANCE AND DELIVERY OF SUCH BONDS; TAKING CERTAIN OTHER ACTIONS WITH RESPECT TO SUCH BONDS; AUTHORIZING AND APPROVING THE NEGOTIATED SALE OF SUCH BONDS TO THE UNDERWRITERS NAMED HEREIN SUBJECT TO THE TERMS AND CONDITIONS CONTAINED HEREIN; APPROVING THE FORM AND AUTHORIZING THE DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND EXECUTION AND DELIVERY OF A FINAL OFFICIAL STATEMENT; AUTHORIZING CERTAIN OFFICIALS TO DEEM FINAL THE PRELIMINARY OFFICIAL STATEMENT FOR PURPOSES OF SECURITIES AND EXCHANGE COMMISSION RULE 15C2-12; APPROVING THE FORM AND AUTHORIZING THE EXECUTION AND DELIVERY OF A BOND PURCHASE AGREEMENT; APPOINTING THE PAYING AGENT AND REGISTRAR; APPROVING THE FORM AND AUTHORIZING THE EXECUTION AND DELIVERY OF A DISCLOSURE DISSEMINATION AGENT AGREEMENT; PROVIDING CERTAIN OTHER MATTERS RELATING TO THE SERIES 2018 BONDS; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILTTY; AND PROVIDING FOR AN EFFECTIVE DATE. TABLE OF CONTENTS ARTICLE I GENERAL....................................................................................... SECTION 1.01. DEFINITIONS........................................................... SECTION 1.02. AUTHORITY FOR RESOLUTION ......................... SECTION 1.03. RESOLUTION TO CONSTITUTE CONTRACT.. SECTION 1.04. FINDINGS................................................................. SECTION 105 THE PROJECT TEMP RESO. #13115 PAGE 2 .....................................4 .....................................4 ...................................10 ...................................10 ...................................10 ii . .................................................................... ARTICLE II AUTHORIZATION, TERMS, EXECUTION AND REGISTRATION OF BONDS ...11 SECTION 2.01. AUTHORIZATION OF BONDS...................................................................11 SECTION 2.02. DESCRIPTION OF BONDS...........................................................................12 SECTION 2.03. APPLICATION OF BOND PROCEEDS......................................................13 SECTION 2.04. EXECUTION OF BONDS..............................................................................13 SECTION 2.05. AUTHENTICATION.....................................................................................13 SECTION 2.06. TEMPORARY BONDS...................................................................................14 SECTION 2.07. BONDS MUTILATED, DESTROYED, STOLEN OR LOST......................14 SECTION 2.08. TRANSFER......................................................................................................14 SECTION 2.09. BOOK ENTRY.................................................................................................16 SECTION 2.10. FORM OF PURCHASE CONTRACT..........................................................17 SECTION 2.11. FORM OF BONDS..........................................................................................17 ARTICLE III REDEMPTION OF BONDS.............................................................................................25 SECTION 3.01. PRIVILEGE OF REDEMPTION....................................................................25 SECTION 3.02. SELECTION OF BONDS TO BE REDEEMED............................................25 SECTION 3.03. NOTICE OF REDEMPTION.........................................................................25 SECTION 3.04. REDEMPTION OF PORTIONS OF BONDS...............................................26 SECTION 3.05. PAYMENT OF REDEEMED BONDS..........................................................26 ARTICLE IV SECURITY, SPECIAL FUNDS AND APPLICATION THEREOF..............................27 SECTION 4.01. BONDS NOT TO BE INDEBTEDNESS OF ISSUER..................................27 SECTION 4.02. BONDS SECURED BY PLEDGE OF PLEDGED FUNDS ..........................27 SECTION 4.03. CONSTRUCTION FUND..............................................................................29 SECTION 4.04. FUNDS AND ACCOUNTS...........................................................................29 SECTION 4.05. FLOW OF FUNDS..........................................................................................29 SECTION 4.06. INVESTMENTS...............................................................................................30 SECTION 4.07. SEPARATE ACCOUNTS...............................................................................30 ARTICLE V OTHER OBLIGATIONS AND COVENANTS OF ISSUER..........................................31 SECTION 5.01. ANTI -DILUTION TEST.................................................................................31 SECTION 5.02. BOOKS AND RECORDS...............................................................................31 SECTION5.03. ANNUAL AUDIT...........................................................................................32 SECTION 5.04. NO IMPAIRMENT.........................................................................................32 SECTION 5.05. FEDERAL INCOME TAX COVENANTS...................................................32 TEMP RESO. #13115 PAGE 3 ARTICLE VI DEFAULTS AND REMEDIES.........................................................................................33 SECTION 6.01. EVENTS OF DEFAULT.................................................................................33 SECTION 6.02. REMEDIES.......................................................................................................33 SECTION 6.03. DIRECTIONS TO TRUSTEE AS TO REMEDIAL PROCEEDINGS ......... 34 SECTION 6.04. REMEDIES CUMULATIVE...........................................................................34 SECTION 6.05. WAIVER OF DEFAULT.................................................................................34 SECTION 6.06. APPLICATION OF MONEYS AFTER DEFAULT.....................................34 ARTICLE VII SUPPLEMENTAL RESOLUTIONS...............................................................................35 SECTION 7.01. SUPPLEMENTAL RESOLUTIONS WITHOUT BONDHOLDERS' CONSENT.......................................................................................................35 SECTION 7.02. SUPPLEMENTAL RESOLUTIONS WITH BONDHOLDERS' CONSENT 36 ARTICLE VIII MISCELLANEOUS........................................................................................................37 SECTION 8.01. DEFEASANCE................................................................................................37 SECTION 8.02. PRELIMINARY AND FINAL OFFICIAL STATEMENT ..........................39 SECTION 8.03. SALE OF BONDS............................................................................................39 SECTION 8.04. PAYING AGENT AND REGISTRAR..........................................................39 SECTION 8.05. DISCLOSURE DISSEMINATION AGENT AGREEMENT ......................39 SECTION 8.06. GENERAL AUTHORITY...............................................................................40 SECTION 8.07. INTERESTED PARTIES.................................................................................40 SECTION 8.08. NO PERSONAL LIABILITY..........................................................................40 SECTION 8.09. SEVERABILITY OF INVALID PROVISIONS.............................................40 SECTION 8.10. REPEAL OF INCONSISTENT RESOLUTIONS.........................................40 SECTION 8.11. EFFECTIVE DATE..........................................................................................42 LIST OF EXHIBITS EXHIBIT A - THE PROJECT DESCRIPTION EXHIBIT B - FORM OF PURCHASE CONTRACT EXHIBIT C - FORM OF DISCLOSURE DISSEMINATION AGENT AGREEMENT EXHIBIT D - FORM OF PRELIMINARY OFFICIAL STATEMENT TEMP RESO. #13115 PAGE 4 BE IT RESOLVED BY THE CITY COMMISSION OF CITY OF TAMARAC, FLORIDA AS FOLLOWS: ARTICLE I GENERAL SECTION 1.01. DEFINITIONS. When used in this Resolution, the following terms shall have the following meanings, unless the context clearly otherwise requires: "Act" shall mean the Constitution of the State of Florida, Chapter 166, Florida Statutes, as amended, the municipal charter of the Issuer, and other applicable provisions of law. "Amortization Installment" shall mean an amount designated as such by the Issuer pursuant to the terms of Section 2.02 hereof and established with respect to any Term Bonds. "Annual Debt Service" shall mean, with respect to any Bond Year, the aggregate amount of (1) all interest required to be paid on the Outstanding Bonds during such Bond Year, except to the extent that such interest is to be paid from deposits in the Construction Fund or the Interest Account made from Bond proceeds, (2) all principal of Outstanding Serial Bonds maturing in such Bond Year, and (3) all Amortization Installments designated as provided herein with respect to such Bond Year. "Authorized Issuer Officer" shall mean any person authorized by this Resolution to perform such act or sign such document. 'Blanket Letter' shall mean the Blanket Issuer Letter of Representation delivered by the Issuer on August 22, 1997, and received and accepted by The Depository Trust Company ("DTC") in order to induce DTC to act as securities depository for the Bonds. "Bond Amortization Account" shall mean the separate account in the Debt Service Fund established pursuant to Section 4.04 hereof. "Bond Counsel" shall mean Bryant Miller Olive P.A. or any attorney at law or firm of attorneys, of nationally recognized standing in matters pertaining to the exclusion from gross income for federal income tax purposes of interest on obligations issued by states and political subdivisions, and duly admitted to practice law before the highest court of any state of the United States of America. 'Bond Year' shall mean the period commencing on October 1 of each year and continuing through the next succeeding September 30, unless otherwise provided by Supplemental Resolution. 'Bondholder' or "Holder' or "holder' or any similar term, when used with reference to a Bond or Bonds, shall mean any person who shall be the registered owner of any Outstanding Bond or Bonds as provided in the registration books of the Issuer. TEMP RESO. #13115 PAGE 5 'Bonds" shall mean the City of Tamarac, Florida Capital Improvement Revenue Bonds, Series 2018 issued pursuant to this Resolution. "City Attorney" shall mean the City Attorney or any Assistant City Attorney of the Issuer, or such other person as may be duly authorized by the Issuer to act on his or her behalf. "City Clerk" shall mean the City Clerk of the Issuer, or any deputy City Clerk of the Issuer, or such other person as may be duly authorized by the Issuer to act on his or her behalf. "City Commission" shall mean the City Commission of the Issuer or the board or body succeeding to its principal functions. "City Manager" shall mean the City Manager of the Issuer, or any deputy City Manager of the Issuer, or such other person as may be duly authorized by the Issuer to act on his or her behalf. "Code" shall mean the Internal Revenue Code of 1986, as amended, and the applicable regulations and rules thereunder in effect or proposed. "Construction Fund" shall mean the City of Tamarac Capital Improvement Revenue Bonds, Series 2018 Construction Fund established pursuant to Section 4.03 hereof. "Cost" when used in connection with the Project, shall mean (1) the Issuer's cost of physical construction; (2) costs of acquisition by or for the Issuer of such Project; (3) costs of land and interests therein and the costs of the Issuer incidental to such acquisition; (4) the cost of any indemnity and surety bonds and premiums for insurance during construction; (5) all interest due to be paid on the Bonds and other obligations relating to the Project during the construction period of such Project and for a reasonable period thereafter; (6) engineering, legal and other consultant fees and expenses; (7) costs and expenses incidental to the issuance of the Bonds for up to one year, including legal and financial advisory fees and expenses and the fees and expenses of any auditors, Paying Agent, Registrar or depository; (8) payments, when due (whether at the maturity of principal or the due date of interest or upon redemption) on any indebtedness of the Issuer (other than the Bonds) incurred for such Project; (9) costs of machinery or equipment required by the Issuer for the commencement of operation of such Project; (10) capitalized interest funded from the proceeds of the Bonds, if any; or (11) any other costs properly attributable to such construction, acquisition, or equipping, as determined by generally accepted accounting principles and shall include reimbursement to the Issuer for any such items of Cost heretofore paid by the Issuer. Any Supplemental Resolution may provide for additional items to be included in the aforesaid Costs. "Debt" means at any date (without duplication) all of the following to the extent that they are secured by or payable in whole or in part from any Non -Ad Valorem Revenues (A) all obligations of the Issuer for borrowed money or evidenced by bonds, debentures, notes or similar instruments; (B) all obligations of the Issuer to pay the deferred purchase price of TEMP RESO. #13115 PAGE 6 property or services, except trade accounts payable under normal trade terms and which arise in the ordinary course of business; (C) all obligations of the Issuer as lessee under capitalized leases; and (D) all indebtedness of other Persons to the extent guaranteed by, or secured by, Non -Ad Valorem Revenues of the Issuer; provided, however, if with respect to any obligation contemplated in (A), (B), or (C) above, to which the Issuer has covenanted to budget and appropriate sufficient Non -Ad Valorem Revenues to satisfy such obligation but has not secured such obligation with alien on or pledge of any Non -Ad Valorem Revenues then, and with respect to any obligation contemplated in (D) above, such obligation shall not be considered "Debt" for purposes of this Resolution unless the Issuer has actually used Non -Ad Valorem Revenues to satisfy such obligation during the immediately preceding Fiscal Year or reasonably expects to use Non -Ad Valorem Revenues to satisfy such obligation in the current or immediately succeeding Fiscal Year. If an obligation is considered "Debt" as a result of the proviso set forth in the immediately preceding sentence, it shall continue to be considered 'Debt" until the Issuer has not used any Non -Ad Valorem Revenues to satisfy such obligation for two (2) consecutive Fiscal Years. 'Debt Service Fund" shall mean the City of Tamarac Capital Improvement Revenue Bonds, Series 2018 Debt Service Fund established pursuant to Section 4.04 hereof. 'Defeasance Securities" means: (1) Cash; (2) U.S. Treasury Certificates, Notes and Bonds (including State and Local Government Series - "SLGs"); (3) Direct obligations of the Treasury which have been stripped by the Treasury itself, CATS, TIGRS and similar securities; (4) The interest component of Resolution Funding Corp. ("REFCORP") strips which have been stripped by request to the Federal Reserve Bank of New York in book entry form are acceptable; (5) Pre -refunded municipal bonds rated "Aaa" by Moody's and "AAA" by S&P. If however, the issue is only rated by S&P (i.e., there is no Moody's rating), then the pre -refunded bonds must have been pre -refunded with cash, direct U.S. or U.S. guaranteed obligations, or AAA rate pre -refunded municipals to satisfy this condition. (6) Obligations issued by the following agencies which are backed by the full faith and credit of the U.S. U.S. Export -Import Bank (Eximbank) Direct obligations or fully guaranteed certificates of beneficial ownership b. Farmers Home Administration (FmHA) TEMP RESO. #13115 PAGE 7 Certificates of beneficial ownership C. Federal Financing Bank d. General Services Administration Participation certificates e. U.S. Maritime Administration Guaranteed Title XI financing f. U.S. Department of Housing and Urban Development (HUD) Project Notes Local Authority Bonds New Communities Debentures - U.S. government guaranteed debentures U.S. Public Housing Notes and Bonds - U.S. government guaranteed public housing notes and bonds "Director of Financial Services" shall mean to Director of Financial Services of the Issuer, or such other person as may be duly authorized by the Issuer to act on his or her behalf. "Disclosure Dissemination Agent Agreement" shall mean the agreement between the Dissemination Agent and the Issuer entered in connection with the issuance of the Bonds. "Dissemination Agent" shall mean Digital Assurance Certification, L.L.C. or such other dissemination agent duly appointed by the Issuer. "Financial Advisor" shall mean Larson Consulting Services, LLC or such other financial advisor as may be duly appointed by the Issuer. "Fiscal Year" shall mean the period commencing on October 1 of each year and continuing through the next succeeding September 30, or such other period as may be prescribed by law. "Governmental Fund Revenues" shall mean total revenues of the Issuer derived from any source whatsoever and that are allocated and accounted for in the "governmental funds' as shown in the annual audited financial statements of the Issuer for the applicable FiscalYear. "Interest Account" shall mean the separate account in the Debt Service Fund established pursuant to Section 4.04 hereof. "Interest Date" shall be such date or dates for the payment of interest on the Bonds as shall be provided for herein. TEMP RESO. #13115 PAGE 8 "Issuer" or "City" shall mean City of Tamarac, Florida, a body politic and corporate, organized and existing under the laws of the State of Florida, including the Act. "Maximum Annual Debt Service" shall mean the maximum Annual Debt Service to come due during any Bond Year of the Issuer on the Outstanding Bonds. "Mayor" shall mean the Mayor of the Issuer, or in his or her absence, the Vice Mayor of the Issuer, or such other person as may be duly authorized by the Issuer to act on his or her behalf. "Non -Ad Valorem Revenues" shall mean all Governmental Funds Revenues, other than revenues generated from ad valorem taxation on real or personal property, which are legally available to make the payments required herein. "Outstanding" when used with reference to Bonds and as of any particular date, shall describe all Bonds theretofore and thereupon being authenticated and delivered except, (1) any Bond in lieu of which another Bond or other Bonds have been issued under an agreement to replace lost, mutilated or destroyed Bonds, (2) any Bond surrendered by the Holder thereof in exchange for another Bond or other Bonds under Sections 2.06 and 2.08 hereof, and (3) Bonds canceled after purchase in the open market or because of payment at or redemption prior to maturity, and (4) Bonds deemed paid in accordance with Section 8.01 hereof. "Paying Agent" shall mean the paying agent for Bonds appointed by or pursuant to Section 8.04 hereof and its successors or assigns, and any other Person which may at any time be substituted in its place pursuant to this Resolution. "Permitted Investments" shall mean any legal investment under the laws of the State and the investment policy of the Issuer. "Person" shall mean an individual, a corporation, a partnership, an association, a joint stock company, a trust, any unincorporated organization or governmental entity. "Pledged Funds" shall mean (1) Non -Ad Valorem Revenues budgeted and appropriated by the Issuer in accordance with Section 4.02 hereof and deposited into the Debt Service Fund, and (2) until applied in accordance with the provisions of this Resolution, all moneys, including the investments thereof, in the funds and accounts established hereunder, with the exception of the Rebate Fund. "Principal Account" shall mean the separate account in the Debt Service Fund established pursuant to Section 4.04 hereof. "Project" shall mean the capital improvements to the Issuer's sound walls, fire station and parks and recreation as more particularly described in Exhibit A, and such other municipal capital improvements as shall be approved by the City Commission and as shall not cause the Issuer to violate its covenants and obligations hereunder, including, without limitation, all TEMP RESO. #13115 PAGE 9 property rights, appurtenances, easements, franchises and equipment relating thereto and deemed necessary or convenient for the acquisition, design, construction, reconstruction and equipping thereof. "Purchase Contract" shall mean the Bond Purchase Agreement, the form of which is attached hereto as Exhibit 'B" and approved pursuant to Section 2.10 hereof. "Rebate Amount" means the excess of the future value, as of a computation date, of all receipts on nonpurpose investments (as defined in Section 1.148-1(b) of the Income Tax Regulations) over the future value, as of that date, of all payments on nonpurpose investments, all as provided by regulations under the Code implementing Section 148 thereof. "Rebate Fund" shall mean the City of Tamarac Capital Improvement Revenue Bonds, Series 2018 Rebate Fund established pursuant to Section 5.05 hereof. "Redemption Price" shall mean, with respect to any Bond or portion thereof, the principal amount or portion thereof, plus the applicable premium, if any, payable upon redemption thereof pursuant to such Bond or this Resolution. "Registrar" shall mean the registrar for the Bonds appointed by or pursuant to Section ^ 8.4 hereof and its successors and assigns, and any other Person which may at any time be substituted in its place pursuant to this Resolution. "Resolution" shall mean this Resolution, as the same may from time to time be amended, modified or supplemented by Supplemental Resolution. "Serial Bonds" shall mean all of the Bonds other than the Term Bonds. "State" shall mean the State of Florida. "Supplemental Resolution" shall mean any resolution of the Issuer amending or supplementing this Resolution adopted and becoming effective in accordance with the terms of Sections 7.01 and 7.02 hereof. "Term Bonds" shall mean those Bonds which shall be designated as Term Bonds hereby and which are subject to mandatory redemption by Amortization Installments. "Underwriters" shall mean, collectively, Stifel, Nicolaus & Company, Incorporated, RBC Capital Markets, LLC and UBS Financial Services, Inc. The terms "herein," "hereunder," "hereby," "hereto," "hereof' and any similar terms, shall refer to this Resolution; the term heretofore shall mean before the date of adoption of this Resolution; and the term "hereafter" shall mean after the date of adoption of this Resolution. Words importing the masculine gender include every other gender. TEMP RESO. #13115 PAGE 10 Words importing the singular number include the plural number, and vice versa. SECTION 1.02. AUTHORITY FOR RESOLUTION. This Resolution is adopted pursuant to the provisions of the Act. SECTION 1.03. RESOLUTION TO CONSTITUTE CONTRACT. In consideration of the purchase and acceptance of any or all of the Bonds by those who shall hold the same from time to time, the provisions of this Resolution shall be a part of the contract of the Issuer with the Holders of the Bonds and shall be deemed to be and shall constitute a contract between the Issuer and the Holders from time to time of the Bonds. The pledge made in this Resolution and the provisions, covenants and agreements herein set forth to be performed by or on behalf of the Issuer shall be for the equal benefit, protection and security of the Holders of any and all of said Bonds. All of the Bonds, regardless of the time or times of their issuance or maturity, shall be of equal rank without preference, priority or distinction of any of the Bonds over any other thereof except as expressly provided in or pursuant to this Resolution. SECTION 1.04. FINDINGS. It is hereby ascertained, determined and declared: (1) That the Issuer deems it necessary, desirable and in the best interests of the Issuer and its citizens and to serve a public purpose that the Project be acquired, designed, constructed, reconstructed and equipped. (2) That the Project shall be financed and/or reimbursed with the proceeds of the Bonds, together with certain other legally available funds of the Issuer, if any. (3) That 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, design, construct, reconstruct and equip the Project. (4) That the estimated Non -Ad Valorem Revenues, after satisfying funding requirements for obligations having an express lien on or pledge thereof and after satisfying any funding requirements for essential governmental services of the Issuer which are not funded by ad valorem taxation, will be sufficient to pay the principal of and interest on the Bonds, as the same become due, and to make all other payments provided for in this Resolution. (5) That the principal of and interest on the Bonds and all other payments provided for in this Resolution will be paid solely from the Pledged Funds; and the ad valorem taxing power of the Issuer will never be necessary to pay the principal of and interest on the Bonds and, except as otherwise provided herein, the Bonds shall not constitute a lien upon any property of the Issuer. (6) That due to the willingness of the Underwriters to purchase the Bonds at market interest rates favorable to the Issuer and the critical importance of timing of the sale of the TEMP RESO. #13115 PAGE 11 Bonds, it is hereby determined that it is in the best interest of the public and the Issuer to sell the Bonds at a negotiated sale upon meeting the terms and conditions contained herein and in the Purchase Contract. (7) That the Issuer expects to receive an offer from the Underwriters to purchase the Bonds, subject to the terms and conditions contained in the Resolution, herein and set forth in the Purchase Contract. (8) That the Issuer desires to sell the Bonds subject to the terms and conditions contained herein and set forth in the Purchase Contract, and authorize execution and distribution of the Official Statement in connection with the issuance of the Bonds. (9) That prior to the execution of the Purchase Contract the Issuer will be provided all applicable disclosure information required by Section 218.385, Florida Statutes, a copy of which is attached to or otherwise included as part of the Purchase Contract. SECTION 1.05. THE PROJECT. The Issuer does hereby authorize the acquisition, design, construction, reconstruction and equipping of the Project. ARTICLE II AUTHORIZATION, TERMS, EXECUTION AND REGISTRATION OF BONDS SECTION 2.01. AUTHORIZATION OF BONDS. This Resolution authorizes an issue of Bonds of the Issuer to be designated as "City of Tamarac, Florida, Capital Improvement Revenue Bonds, Series 2018" in an aggregate principal amount of not to exceed $19,000,000 for the purpose of financing and/or reimbursing the Cost of acquiring, designing, constructing, reconstructing and equipping of the Project, including paying certain costs of issuance incurred with respect thereto and any capitalized interest related thereto; provided the Issuer may change such Series designation in the event that the Bonds are not issued in calendar year 2018. The Bonds may, if and when authorized by the Issuer pursuant to this Resolution, be issued with such further appropriate particular designations added to or incorporated in such title for the Bonds as the Issuer may determine. The Bonds shall bear interest at such rate or rates not exceeding the maximum rate permitted by law; and shall be payable in lawful money of the United States of America on such dates; all as determined hereunder. The Bonds shall be issued in denominations of $5,000 or integral multiples thereof, in such form, whether coupon or registered; shall be dated such date; shall bear such numbers; shall be payable at such place or places; shall contain such redemption provisions; shall have such Paying Agent and Registrar; and shall mature in such years and amounts; all as determined hereunder. TEMP RESO. #13115 PAGE 12 The Bonds shall be issued under and secured by this Resolution and shall be executed and delivered in the manner as set forth in this Resolution, with such additional changes and insertions therein as conform to the provisions of the Purchase Contract, and such execution and delivery shall be conclusive evidence of the approval thereof by such officers. SECTION 2.02. DESCRIPTION OF BONDS. (1) The Bonds shall be issued as fully registered Bonds; shall be numbered consecutively from one upward in order of maturity preceded by the letter "R"; shall bear interest at a rate or rates not exceeding the maximum rate allowed by Florida law, payable in such manner and on such dates; shall consist of such amounts of Serial Bonds and Term Bonds; maturing in such amounts or Amortization Installments and in such years; shall be payable in such place or places; shall have such Paying Agent and Registrar; and shall contain such redemption provisions; all as hereinafter described. (2) The principal of or Redemption Price, if applicable, on the Bonds are payable upon presentation and surrender of the Bonds at the designated office of the Paying Agent. Interest payable on any such Bond on any Interest Date will be paid by check or draft of the Paying Agent to the Holder in whose name such Bond shall be registered at the close of business on the date which shall be the fifteenth day (whether or not a business day) of the calendar month next preceding such Interest Date, or, unless otherwise provided by Supplemental Resolution, at the option of the Paying Agent, and at the request and expense of such Holder, by bank wire transfer for the account of such Holder. In the event the interest -- payable on any such Bond is not punctually paid or duly provided for by the Issuer on such Interest Date, such defaulted interest will be paid to the Holder in whose name such Bond shall be registered at the close of business on a special record date for the payment of such defaulted interest as established by notice to such Holder, not less than ten days preceding such special record date. All payments of principal of or Redemption Price, if applicable, and interest on the Bonds shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. (3) The Issuer hereby delegates to the Mayor and the City Manager the authority (a) to determine (i) the dated date, (ii) the maturity dates and amounts, (iii) the interest rates and Interest Dates, (iv) the redemption features, (v) the Amortization Installments for the Term Bonds, if any, (vi) the delivery date, and (vii) all other details of the Bonds; and (b) to take such further action as shall be required for carrying out the purposes of this Resolution, all with respect to the Bonds; and (c) to execute and deliver, on behalf of the Issuer, the Purchase Contract as provided in Section 2.10 hereof; provided, however, that the Mayor and the City Manager shall not take any action pursuant to this Section 2.02 unless the Mayor and the City Manager shall have received an offer from the Underwriters to purchase the Bonds and such information as the Mayor and the City Manager shall deem necessary in order to demonstrate that (i) the aggregate principal amount of the Bonds is not in excess of $19,000,000, (ii) the final maturity of the Bonds is not later than October 1, 2048, (iii) the true interest cost rate shall not exceed 5.00%, and (iv) the underwriting discount is not greater than 0.50% of the original principal amount of the Bonds. TEMP RESO. #13115 PAGE 13 (4) All actions of the Mayor and the City Manager taken pursuant to the authority contained in Section 2.02(3) above shall be evidenced by the execution of the Purchase Contract by the Mayor and the City Manager, which shall constitute complete evidence of the actions of the Mayor and the City Manager in accordance with this Section and shall constitute official action of the Issuer. SECTION 2.03. APPLICATION OF BOND PROCEEDS. Except as otherwise provided by Supplemental Resolution, the proceeds derived from the sale of the Bonds, including accrued interest, if any, and premium, if any, together with legally available funds of the Issuer, if any, shall, simultaneously with the delivery of the Bonds to the purchaser or purchasers thereof, be applied by the Issuer as follows: (1) Accrued interest, if any, shall be deposited in the Interest Account and shall be used only for the purpose of paying the interest which shall thereafter become due on the Bonds. (2) The balance of the proceeds of the Bonds shall be deposited in the Construction Fund to be used to pay Cost of the Project, including but not limited to the costs of issuance of the Bonds and any capitalized interest related thereto. SECTION 2.04. EXECUTION OF BONDS. The Bonds shall be signed by, or bear the facsimile signature of the Mayor and the City Manager, shall be attested by or bear the facsimile signature of the City Clerk and shall be approved as to form by the manual or facsimile signature of the City Attorney. The official seal of the Issuer shall be imprinted on each Bond. In case any one or more of the officers who shall have signed or sealed any of the Bonds or whose facsimile signature shall appear thereon shall cease to be such officer of the Issuer before the Bonds so signed and sealed have been actually sold and delivered, such Bonds may nevertheless be sold and delivered as herein provided and may be issued as if the person who signed or sealed such Bonds had not ceased to hold such office. Any Bond may be signed and sealed on behalf of the Issuer by such person who at the actual time of the execution of such Bond shall hold the proper office of the Issuer, although, at the date of such Bond, such person may not have held such office or may not have been so authorized. The Issuer may adopt and use for such purposes the facsimile signatures of any such persons who shall have held such offices at any time after the date of the adoption of this Resolution, notwithstanding that either or both shall have ceased to hold such office at the time the Bonds shall be actually sold and delivered. SECTION 2.05. AUTHENTICATION. No Bond shall be secured hereunder or be entitled to the benefit hereof or shall be valid or obligatory for any purpose unless there shall be manually endorsed on such Bond a certificate of authentication by the Registrar or such other entity as may be approved by the Issuer for such purpose. Such certificate on any Bond shall be conclusive evidence that such Bond has been duly authenticated and delivered under this Resolution. The form of such certificate shall be substantially in the form provided in Section 2.11 hereof. TEMP RESO. #13115 PAGE 14 SECTION 2.06. TEMPORARY BONDS. Until the definitive Bonds are prepared, the Issuer may execute, in the same manner as is provided in Section 2.04 hereof, and deliver, upon authentication by the Registrar pursuant to Section 2.05 hereof, in lieu of definitive Bonds, but subject to the same provisions, limitations and conditions as the definitive Bonds, except as to the denominations thereof, one or more temporary Bonds substantially of the tenor of the definitive Bonds in lieu of which such temporary Bond or Bonds are issued, in denominations authorized by the Issuer by Supplemental Resolution, and with such omissions, insertions and variations as may be appropriate to temporary Bonds. The Issuer, at its own expense, shall prepare and execute definitive Bonds, which shall be authenticated by the Registrar. Upon the surrender of such temporary Bonds for exchange, the Registrar, without charge to the Holder thereof, shall deliver in exchange therefor definitive Bonds, of the same aggregate principal amount and maturity as the temporary Bonds surrendered. Until so exchanged, the temporary Bonds shall in all respects be entitled to the same benefits and security as definitive Bonds issued pursuant to this Resolution. All temporary Bonds surrendered in exchange for another temporary Bond or Bonds or for a definitive Bond or Bonds shall be forthwith canceled by the Registrar. SECTION 2.07. BONDS MUTILATED, DESTROYED, STOLEN OR LOST. In case any Bond shall become mutilated, or be destroyed, stolen or lost, the Issuer may, in its discretion, issue and deliver, and the Registrar shall authenticate, a new Bond of like tenor as the Bond so mutilated, destroyed, stolen or lost, in exchange and substitution for such mutilated Bond upon surrender and cancellation of such mutilated Bond or in lieu of and substitution for the Bond destroyed, stolen or lost, and upon the Holder furnishing the Issuer and the Registrar proof of such Holder's ownership thereof and satisfactory indemnity and complying with such other reasonable regulations and conditions as the Issuer or the Registrar may prescribe and paying such expenses as the Issuer and the Registrar may incur. All Bonds so surrendered or otherwise substituted shall be canceled by the Registrar. If any of the Bonds shall have matured or be about to mature, instead of issuing a substitute Bond, the Issuer may pay the same or cause the Bond to be paid, upon being indemnified as aforesaid, and if such Bonds be lost, stolen or destroyed, without surrender thereof. Any such duplicate Bonds issued pursuant to this Section 2.07 shall constitute original, additional contractual obligations on the part of the Issuer whether or not the lost, stolen or destroyed Bond be at any time found by anyone, and such duplicate Bond shall be entitled to equal and proportionate benefits and rights as to lien on the Pledged Funds to the same extent as all other Bonds issued hereunder. SECTION 2.08. TRANSFER. Bonds, upon surrender thereof at the office of the Registrar with a written instrument of transfer satisfactory to the Registrar, duly executed by the Holder thereof or such Holder's attorney duly authorized in writing, may, at the option of the Holder thereof, be exchanged for an equal aggregate principal amount of registered Bonds of the same maturity of any other authorized denominations. TEMP RESO. #13115 PAGE 15 The Bonds issued under this Resolution shall be and have all the qualities and incidents of negotiable instruments under the commercial laws and the Uniform Commercial Code of the State, subject to the provisions for registration and transfer contained in this Resolution and in the Bonds. So long as any of the Bonds shall remain Outstanding, the Issuer shall maintain and keep, at the office of the Registrar, books for the registration and transfer of the Bonds. Each Bond shall be transferable only upon the books of the Issuer, at the office of the Registrar, under such reasonable regulations as the Issuer may prescribe, by the Holder thereof in person or by such Holder's attorney duly authorized in writing upon surrender thereof together with a written instrument of transfer satisfactory to the Registrar duly executed and guaranteed by the Holder or such Holder's duly authorized attorney. Upon the transfer of any such Bond, the Issuer shall issue, and cause to be authenticated, in the name of the transferee a new Bond or Bonds of the same aggregate principal amount and Series and maturity as the surrendered Bond. The Issuer, the Registrar and any Paying Agent or fiduciary of the Issuer may deem and treat the Person in whose name any Outstanding Bond shall be registered upon the books of the Issuer as the absolute holder of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal or Redemption Price, if applicable, and interest on such Bond and for all other purposes, and all such payments so made to any such Holder or upon such Holder's order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid and neither the Issuer nor the Registrar nor any Paying Agent or other fiduciary of the Issuer shall be affected by any notice to the contrary. The Registrar, in any case where it is not also the Paying Agent in respect to the Bonds, forthwith (A) following the fifteenth day prior to an Interest Date; (B) following the fifteenth day next preceding the date of first mailing of notice of redemption of any Bonds; and (C) at any other time as reasonably requested by the Paying Agent, shall certify and furnish to such Paying Agent the names, addresses and holdings of Bondholders and any other relevant information reflected in the registration books. Any Paying Agent of any fully registered Bond shall effect payment of interest on such Bonds by mailing a check or draft to the Holder entitled thereto or may, in lieu thereof, upon the request and at the expense of such Holder, transmit such payment by bank wire transfer for the account of such Holder. In all cases in which the privilege of exchanging Bonds or transferring Bonds is exercised, the Issuer shall execute and the Registrar shall authenticate and deliver such Bonds in accordance with the provisions of this Resolution. Execution of Bonds in the same manner as is provided in Section 2.04 hereof for purposes of exchanging, replacing or transferring Bonds may occur at the time of the original delivery of the Bonds. All Bonds surrendered in any such exchanges or transfers shall be held by the Registrar in safekeeping until directed by the Issuer to be canceled by the Registrar. For every such exchange or transfer of Bonds, the Issuer or the Registrar may make a charge sufficient to reimburse it for any tax, fee, expense or other governmental charge required to be paid with respect to such exchange or transfer. The Issuer and the Registrar shall not be obligated to make any such exchange or transfer of Bonds during TEMP RESO. #13115 PAGE 16 the fifteen days next preceding an Interest Date on the Bonds, or, in the case of any proposed redemption of Bonds, then during the fifteen days next preceding the date of the first mailing of notice of such redemption and continuing until such redemption date. SECTION 2.09. BOOK ENTRY. The Blanket Letter was entered into by the Issuer with The Depository Trust Company ('DTC"). It is intended that the Bonds be registered so as to participate in a global book -entry system with DTC as set forth herein and in such Blanket Letter. The terms and conditions of such Blanket Letter shall govern the registration of the Bonds. The Bonds shall be initially issued in the form of a single fully registered Bond for each maturity. Upon initial issuance, the ownership of such Bonds shall be registered by the Registrar in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. So long as any Bond is registered in the name of DTC (or its nominee), the Issuer, the Registrar and the Paying Agent may treat DTC (or its nominee) as the sole and exclusive holder of such Bonds registered in its name, and all payments with respect to the principal or redemption price of, if any, and interest on such Bond ("Payments") and all notices with respect to such Bond ("Notices") shall be made or given, as the case may be, to DTC. Transfers of Payments and delivery of Notices to DTC Participants shall be the responsibility of DTC and not of the Issuer, subject to any statutory and regulatory requirements as may be in effect from time to time. Transfers of Payments and delivery of Notices to beneficial holders of the Bonds by DTC Participants shall be the responsibility of such participants, indirect participants and other nominees of such beneficial holders and not of the Issuer, subject to any statutory and regulatory requirements as may be in effect from time to time. Upon (1) (a) receipt by the Issuer of written notice from DTC (i) to the effect that a continuation of the requirement that all of the Outstanding Bonds be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC, is not in the best interest of the beneficial holders of the Bonds or (ii) to the effect that DTC is unable or unwilling to discharge its responsibilities and no substitute depository willing to undertake the functions of DTC hereunder can be found which is willing and able to undertake such functions upon reasonable and customary terms, (b) termination, for any reason, of the agreement among the Issuer, the Registrar and Paying Agent and DTC evidenced by the Blanket Letter, or (c) determination by the Issuer that such book -entry only system should be discontinued by the Issuer, and (II) compliance with the requirements of any agreement between the Issuer and DTC with respect thereto, the Bonds shall no longer be restricted to being registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC, but may be registered in whatever name or names Holders shall designate, in accordance with the provisions hereof. In such event, the Issuer shall issue and the Registrar shall authenticate, transfer and exchange Bonds consistent with the terms hereof, in denominations of $5,000 or any integral multiple thereof to the Holders thereof. The foregoing notwithstanding, until such time as participation in the book -entry only system is discontinued, the provisions set forth in the Blanket Letter shall apply to the registration and transfer of the Bonds and to Payments and Notices with respect thereto. TEMP RESO. #13115 PAGE 17 SECTION 2.10. FORM OF PURCHASE CONTRACT. Subject to the terms and conditions of Section 2.02 hereof, the Bonds may be sold in a negotiated sale to the Underwriters upon the terms and conditions set forth in this Resolution and in the Purchase Contract, the form of which is attached hereto as Exhibit 'B" and incorporated by reference. The form of the Purchase Contract is hereby approved by the Issuer (such approval indicating the recognition of the Issuer that the conditions precedent in the Purchase Contract and Section 2.02 hereof have been met or will be met prior to the delivery of the Bonds). Upon satisfaction of the conditions contained in this Resolution, including Section 2.02 hereof, the Purchase Contract shall be executed and delivered by the Mayor and the City Manager, shall be attested by the City Clerk and shall be approved as to form by the manual signature of the City Attorney in substantially the form attached hereto as Exhibit 'B" (with such changes and filling of blanks as shall be approved by the Mayor and the City Manager). All of the provisions of the Purchase Contract, when executed and delivered by the Issuer as authorized herein shall be deemed to be part of this instrument as fully and to the same extent as if incorporated verbatim herein. The execution and delivery of the Purchase Contract to be conclusive evidence of the approval thereof. SECTION 2.11. FORM OF BONDS. The text of the Bonds shall be in substantially the following form with such omissions, insertions and variations as may be necessary and/or desirable and approved by the Mayor prior to the issuance thereof (which necessity and/or desirability and approval shall be presumed by the Issuer's delivery of the Bonds to the purchaser or purchasers thereof): TEMP RESO. #13115 PAGE 18 No. R- $ UNITED STATES OF AMERICA STATE OF FLORIDA COUNTY OF BROWARD CITY OF TAMARAC, FLORIDA CAPITAL IMPROVEMENT REVENUE BOND, SERIES 2018 Interest Rate Maturity Date Date of Original Issue CUSIP % 2018 Registered Holder: Principal Amount: KNOW ALL MEN BY THESE PRESENTS, that City of Tamarac, Florida, a body politic and corporate organized and existing under the laws of the State of Florida (the "Issuer"), for value received, hereby promises to pay, solely from the Pledged Funds hereinafter described, to the Registered Holder identified above, or registered assigns as hereinafter provided, on the Maturity Date identified above, the Principal Amount identified above and interest on such Principal Amount from the Date of Original Issue identified above or from the most recent interest payment date to which interest has been paid at the Interest Rate per annum identified above on October 1 and April 1 of each year commencing 1, 2018 until such Principal Amount shall have been paid, except as the provisions hereinafter set forth with respect to redemption prior to maturity may be or become applicable hereto. The principal of and redemption premium, if applicable, on this Bond is payable upon presentation and surrender of this Bond at the designated office of U.S. Bank National Association, Jacksonville, Florida, as Paying Agent. Interest payable on this Bond on any interest date will be paid by check or draft of the Paying Agent to the Registered Holder in whose name this Bond shall be registered at the close of business on the date which shall be the fifteenth day (whether or not a business day) of the calendar month next preceding such interest payment date, or, at the option of the Paying Agent, and at the request and expense of such Registered Holder, by bank wire transfer for the account of such Registered Holder. In the event the interest payable on this Bond is not punctually paid or duly provided for by the Issuer on such interest payment date, such defaulted interest will be paid to the Registered Holder in whose name this Bond shall be registered at the close of business on a special record date for the payment of such defaulted interest as established by notice to such Registered Holder, not less than ten days preceding such special record date. All payments of principal of and redemption premium, if applicable, and interest on this Bond shall be payable in any coin or currency of the TEMP RESO. #13115 PAGE 19 United States of America which at the time of payment is legal tender for the payment of public and private debts. This Bond is one of an authorized issue of Bonds in the aggregate principal amount of $ (the "Bonds") of like date, tenor and effect, except as to maturity date, interest rate, denomination and number, issued for the purpose of financing and/or reimbursing the Cost of the acquiring, designing, constructing, reconstructing and equipping of certain capital improvements to the Issuer's sound walls, fire station, parks and recreation, and other municipal improvements as shall be approved by the City Commission, under the authority of and in full compliance with Chapter 166, Florida Statutes, the Constitution of the State of Florida, the municipal charter of the Issuer and other applicable provisions of law (the "Act"), and Resolution No. R-2018-_duly adopted by the City Commission of the Issuer on 2018, as may be amended and supplemented from time to time (the 'Resolution"), and is subject to the terms and conditions of the Resolution. Capitalized undefined terms used herein shall have the meanings ascribed thereto in the Resolution. The Bonds and the interest thereon are payable solely from and secured by an irrevocable pledge of the Pledged Funds. Pledged Funds consist of (1) Non -Ad Valorem Revenues budgeted and appropriated by the Issuer in accordance with Section 4.02 of the Resolution and deposited into the Debt Service Fund, and (2) until applied in accordance with the provisions of the Resolution, all moneys, including the investments thereof, in the funds and accounts established under the Resolution, with the exception of the Rebate Fund. The Issuer has covenanted and has agreed to appropriate in its annual budget for each Fiscal Year sufficient amount of Non -Ad Valorem Revenues for the payment of principal of and interest on the Bonds in each Fiscal Year, and to make certain other payments required by this Resolution, subject to the limitations described in this Resolution. Reference is made to this Resolution for more complete description of the security for the Bonds. IT IS EXPRESSLY AGREED BY THE REGISTERED HOLDER OF THIS BOND THAT THE FULL FAITH AND CREDIT OF THE ISSUER, THE STATE OF FLORIDA, OR ANY POLITICAL SUBDIVISION THEREOF, ARE NOT PLEDGED TO THE PAYMENT OF THE PRINCIPAL, PREMIUM, IF ANY, AND INTEREST ON THIS BOND AND THAT SUCH HOLDER SHALL NEVER HAVE THE RIGHT TO REQUIRE OR COMPEL THE EXERCISE OF ANY TAXING POWER OF THE ISSUER, THE STATE OF FLORIDA, OR ANY POLITICAL SUBDIVISION THEREOF, TO THE PAYMENT OF PRINCIPAL, PREMIUM, IF ANY, AND INTEREST ON THIS BOND, FOR PAYMENT OF ANY AMOUNTS PAYABLE UNDER THE RESOLUTION, OR IN ORDER TO MAINTAIN ANY SERVICES OR PROGRAMS THAT GENERATE NON -AD VALOREM REVENUES. THIS BOND AND THE OBLIGATION EVIDENCED HEREBY SHALL NOT CONSTITUTE A LIEN UPON ANY PROPERTY OF THE ISSUER, BUT SHALL CONSTITUTE A LIEN ONLY ON, AND SHALL BE PAYABLE SOLELY FROM, THE PLEDGED FUNDS. TEMP RESO. #13115 PAGE 20 This Bond is transferable in accordance with the terms of this Resolution only upon the books of the Issuer kept for that purpose at the designated corporate trust office of the Registrar by the Registered Holder hereof in person or by such Holder's attorney duly authorized in writing, upon the surrender of this Bond together with a written instrument of transfer satisfactory to the Registrar duly executed by the Registered Holder or such Holder's attorney duly authorized in writing, and thereupon a new Bond or Bonds in the same aggregate principal amount shall be issued to the transferee in exchange therefor, and upon the payment of the charges, if any, therein prescribed. The Bonds are issuable in the form of fully registered Bonds in the denominations of $5,000 and integral multiples thereof, not exceeding the aggregate principal amount of the Bonds maturing on the same date. The Issuer, the Registrar and any Paying Agent may treat the Registered Holder of this Bond as the absolute holder hereof for all purposes, whether or not this Bond shall be overdue, and shall not be affected by any notice to the contrary. The Issuer and the Registrar shall not be obligated to make any exchange or transfer of the Bonds during the fifteen days next preceding an interest payment date, or in the case of any proposed redemption of the Bonds, then, during the fifteen days next preceding the date of the first mailing of notice of such redemption. [INSERT REDEMPTION PROVISIONS] Notice of redemption, unless waived, is to be given by the Registrar by mailing an official redemption notice by registered or certified mail at least 30 days and not more than 60 days prior to the date fixed for redemption to the Registered Holders of the Bonds to be redeemed at such Bondholders' addresses shown on the registration books maintained by the Registrar or at such other addresses as shall be furnished in writing by such Registered Holders to the Registrar; provided, however, that no defect in any such notice to any Registered Holder of Bonds to be redeemed nor failure to give such notice to any such Registered Holder nor failure of any such Registered Holder to receive such notice shall in any manner defeat the effectiveness of a call for redemption as to all other Registered Holders of Bonds to be redeemed. Notice of redemption having been given as aforesaid, the Bonds or portions of Bonds to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the Issuer shall default in the payment of the redemption price), such Bonds or portions of Bonds shall cease to bear interest. It is hereby certified and recited that all acts, conditions and things required to exist, to happen and to be performed precedent to and in the issuance of this Bond, exist, have happened and have been performed, in regular and due form and time as required by the laws and Constitution of the State of Florida applicable thereto, and that the issuance of the Bonds does not violate any constitutional or statutory limitations or provisions. Neither the members of the City Commission of the Issuer nor any person executing this Bond shall be liable personally hereon or be subject to any personal liability or accountability by reason of the issuance hereof. TEMP RESO. #13115 PAGE 21 This Bond shall not be valid or become obligatory for any purpose until the Certificate of Authentication hereon shall have been signed by the Registrar. IN WITNESS WHEREOF, the City of Tamarac, Florida has caused this Bond to be executed in its name by the manual signature of its Mayor and City Manager, attested by the manual signature of its City Clerk, and approved as to form by the manual signature of its City Attorney, and its seal to be to be affixed, impressed, imprinted, lithographed or reproduced hereon, all as of this day of 2018. (SEAL) ATTESTED: By: Name: Patricia A. Teufel, CMC Title: City Clerk CITY OF TAMARAC, FLORIDA By: Name: Harry Dressler Title: Mayor By: Name: Michael C. Cernech Title: City Manager APPROVED AS TO FORM: Bv: Name: Samuel S. Goren Title: City Attorney TEMP RESO. #13115 PAGE 22 CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds of the issue described in the within -mentioned Resolution. DATE OF AUTHENTICATION: [REGISTRAR], Registrar Authorized Officer TEMP RESO. #13115 PAGE 23 ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto Insert Social Security or Other Identifying Number of Assignee (Name and Address of Assignee) the within Bond and does hereby irrevocably constitute and appoint as attorneys to register the transfer of the said Bond on the books kept for registration thereof with full power of substitution in the premises. Dated: Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company. NOTICE: The signature to this assignment must correspond with the name of the Registered Holder as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatever and the Social Security or other identifying number of such assignee must be supplied. TEMP RESO. #13115 PAGE 24 The following abbreviations, when used in the inscription on the face of the within Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties as joint tenants with right of survivorship JT TEN - and not as tenants in common UNIF TRANS MIN ACT -- (Cust.) Custodian for under Uniform Transfer to Minors Act of (State) Additional abbreviations may also be used though not in the list above. TEMP RESO. #13115 PAGE 25 ARTICLE III REDEMPTION OF BONDS SECTION 3.01. PRIVILEGE OF REDEMPTION. The Bonds shall be subject to optional and/or mandatory redemption at the times and in the amounts provided by the Purchase Contract. SECTION 3.02. SELECTION OF BONDS TO BE REDEEMED. The Bonds shall be redeemed only in the principal amount of $5,000 each and integral multiples thereof. The Issuer shall, at least sixty (60) days prior to the redemption date (unless a shorter time period shall be satisfactory to the Registrar) notify the Registrar of such redemption date and of the principal amount of Bonds to be redeemed. For purposes of any redemption of less than all of the Outstanding Bonds of a single maturity, the particular Bonds or portions of Bonds to be redeemed shall be selected not more than forty-five (45) days prior to the redemption date by the Registrar from the Outstanding Bonds of the maturity or maturities designated by the Issuer by such method as the Registrar shall deem fair and appropriate and which may provide for the selection for redemption of Bonds or portions of Bonds in principal amounts of $5,000 and integral multiples thereof. Notwithstanding the foregoing, in the event that less than the entire principal amount of a Term Bond is to be optionally redeemed, the Issuer shall determine how the principal amount of such refunded Term Bond is to be allocated to the Amortization Installments for the Term Bond and shall notify the Paying Agent and Registrar of such allocation. If less than all of the Outstanding Bonds of a single maturity are to be redeemed, the Registrar shall promptly notify the Issuer and Paying Agent (if the Registrar is not the Paying Agent for such Bonds) in writing of the Bonds or portions of Bonds selected for redemption and, in the case of any Bond selected for partial redemption, the principal amount thereof to be redeemed. SECTION 3.03. NOTICE OF REDEMPTION. Unless waived by any Holder of Bonds to be redeemed, notice of any redemption made pursuant to this section shall be given by the Registrar on behalf of the Issuer by mailing a copy of an official redemption notice by registered or certified mail at least thirty (30) days and not more than sixty (60) days prior to the date fixed for redemption to each Holder of Bonds to be redeemed at the address of such Holder shown on the registration books maintained by the Registrar or at such other address as shall be furnished in writing by such Holder to the Registrar; provided, however, that no defect in any notice given pursuant to this Section to any Holder of Bonds to be redeemed nor failure to give such notice shall in any manner defeat the effectiveness of a call for redemption as to all other Holders of Bonds to be redeemed. TEMP RESO. #13115 PAGE 26 Every official notice of redemption shall be dated and shall state: (1) the redemption date, (2) the Redemption Price, (3) if less than all Outstanding Bonds are to be redeemed, the number (and, in the case of a partial redemption of any Bond, the principal amount) of each Bond to be redeemed, (4) that, on the redemption date, the Redemption Price will become due and payable upon each such Bond or portion thereof called for redemption, and that interest thereon shall cease to accrue from and after said date, and (5) that such Bonds to be redeemed, whether as a whole or in part, are to be surrendered for payment of the Redemption Price at the designated office of the Registrar. Prior to any redemption date, the Issuer shall deposit with the Registrar an amount of money sufficient to pay the Redemption Price of all the Bonds or portions of Bonds which are to be redeemed on that date. The Issuer may provide that a notice of redemption may be contingent upon the occurrence of condition(s) and that if such condition(s) do not occur, the notice will be --- rescinded; provided notice of such rescission shall be mailed in the manner described herein to all Bondholders as soon as practicable after the Issuer has determined to rescind the redemption. SECTION 3.04. REDEMPTION OF PORTIONS OF BONDS. Any Bond which is to be redeemed only in part shall be surrendered at any place of payment specified in the notice of redemption (with due endorsement by, or written instrument of transfer in form satisfactory to, the Registrar duly executed by, the Holder thereof or such Holder's attorney duly authorized in writing) and the Issuer shall execute and the Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds, of the same interest rate and maturity, and of any authorized denomination as requested by such Holder, in an aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bonds so surrendered. SECTION 3.05. PAYMENT OF REDEEMED BONDS. Notice of redemption having been given substantially as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the Redemption Price therein specified, and from and after such date (unless the Issuer shall default in the payment of the Redemption Price) such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Registrar and/or Paying Agent at the appropriate Redemption Price, plus accrued interest. All Bonds which have been redeemed shall be canceled by the Registrar and shall not be reissued. TEMP RESO. #13115 PAGE 27 ARTICLE IV SECURITY, SPECIAL FUNDS AND APPLICATION THEREOF SECTION 4.01. BONDS NOT TO BE INDEBTEDNESS OF ISSUER. THE BONDS SHALL NOT BE OR CONSTITUTE GENERAL OBLIGATIONS OR INDEBTEDNESS OF THE ISSUER AS "BONDS" WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION, BUT SHALL BE SPECIAL OBLIGATIONS OF THE ISSUER, PAYABLE SOLELY FROM AND SECURED BY A LIEN UPON AND PLEDGE OF THE PLEDGED FUNDS. NO HOLDER OF ANY BOND SHALL EVER HAVE THE RIGHT TO COMPEL THE EXERCISE OF ANY AD VALOREM TAXING POWER TO PAY SUCH BOND, FOR THE PAYMENT OF ANY AMOUNTS PAYABLE HEREUNDER, OR IN ORDER TO MAINTAIN ANY SERVICES OR PROGRAMS THAT GENERATE NON -AD VALOREM REVENUES, OR BE ENTITLED TO PAYMENT OF SUCH BOND FROM ANY MONEYS OF THE ISSUER EXCEPT FROM THE PLEDGED FUNDS IN THE MANNER PROVIDED HEREIN. SECTION 4.02. BONDS SECURED BY PLEDGE OF PLEDGED FUNDS. (1) The Issuer covenants and agrees to appropriate in its annual budget, by amendment if necessary, for each Fiscal Year in which the Bonds remain Outstanding, sufficient amounts of Non -Ad Valorem Revenues into the Debt Service Fund for the payment of principal of and interest on the Bonds and to make certain other payments required hereunder in each such Fiscal Year. Such covenant and agreement on the part of the Issuer shall be cumulative and shall continue until all payments of principal of and interest on the Bonds shall have been budgeted, appropriated, deposited and actually paid. The Issuer agrees that this covenant and agreement shall be deemed to be entered into for the benefit of the Holders of the Bonds and that this obligation may be enforced in a court of competent jurisdiction in accordance with the remedies set forth herein. No lien upon or pledge of such budgeted Non -Ad Valorem Revenues shall be in effect until such monies are budgeted, appropriated and deposited as provided herein. Notwithstanding the foregoing or any provision of this Resolution to the contrary, the Issuer does not covenant to maintain or continue any activities, services or programs now maintained or provided by the Issuer, including those programs and services which generate user fees, regulatory fees or other Non -Ad Valorem Revenues. This covenant and agreement shall not be construed as a limitation on the ability of the Issuer to pledge all or a portion of such Non -Ad Valorem Revenues or to covenant to budget and appropriate Non -Ad Valorem Revenues for other legally permissible purposes. Nothing herein shall be deemed to pledge ad valorem tax revenues or to permit or constitute a mortgage or lien upon any assets owned by the Issuer and no Holder of Bonds or other person may compel the levy of ad valorem taxes on real or personal property within the boundaries of the Issuer for the payment of the Issuer's obligations hereunder or to maintain any activities, services or programs now maintained or provided by the Issuer, including those programs and services which generate user fees, regulatory fees or other Non -Ad Valorem Revenues. TEMP RESO. #13115 PAGE 28 However, this covenant to budget and appropriate in its annual budget for the purposes and in the manner stated herein has the effect of making available for the payment of the Bonds the Non -Ad Valorem Revenues of the Issuer in the manner provided herein and placing on the Issuer a positive duty to appropriate and budget, by amendment if necessary, and deposit amounts sufficient to meet its obligations hereunder; subject, however, in all respects to the restrictions of Section 166.241, Florida Statutes, which make it unlawful for any municipality to expend moneys not appropriated and in excess of such municipality's current budgeted revenues. The obligation of the Issuer to make such payments from its Non -Ad Valorem Revenues is subject in all respects to the payment of obligations secured by a pledge of such Non -Ad Valorem Revenues heretofore or hereafter entered into (including the payment of debt service on bonds and other debt instruments) and funding requirements for essential public purposes affecting health, welfare and safety of the inhabitants of the Issuer; however, such obligation is cumulative and would carry over from Fiscal Year to Fiscal Year. The Issuer has previously and, subject to Section 5.01 hereof, may hereafter provide a covenant to budget and appropriate Non -Ad Valorem Revenues as a source of security, and/or pledge one or more of such Non -Ad Valorem Revenues to provide for the payment of obligations (including debt obligations) incurred by the Issuer. No priority of payment among such obligations is established when a covenant to budget and appropriate Non -Ad Valorem Revenues is used as a source of security for the payment thereof. Such covenant to budget and appropriate does not create any lien upon or pledge of such Non -Ad Valorem Revenues until such funds are deposited in the Debt Service Fund established pursuant to Section 4.04 hereof, nor does it preclude the Issuer from pledging in the future or covenanting to budget and appropriate in the future its Non -Ad Valorem Revenues, nor does it require the Issuer to levy and collect any particular Non -Ad Valorem Revenues, nor does it give the Holders of the Bonds a prior claim on the Non -Ad Valorem Revenues as opposed to claims of general creditors of the Issuer. The payment of the debt service of all of the Bonds issued hereunder shall be secured forthwith equally and ratably by a pledge of and a lien upon the Pledged Funds, as now or hereafter constituted. The Issuer does hereby irrevocably pledge such Pledged Funds to the payment of the principal of and interest on the Bonds issued pursuant to this Resolution, and the Issuer does hereby irrevocably agree to the deposit of Non -Ad Valorem Revenues into the Debt Service Fund at the times provided of the sums required to secure to the Holders of the Bonds issued hereunder, and the payment of the principal of and interest thereon when due. The Pledged Funds shall immediately be subject to the lien of this pledge without any physical delivery thereof or further act, and the lien of this pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the Issuer. (2) Until applied in accordance with this Resolution, the Non -Ad Valorem Revenues deposited by the Issuer in the Debt Service Fund and other amounts on deposit from time to time in the funds and accounts established pursuant to Section 4.04 hereof, plus any earnings thereon, shall be pledged to the repayment of the Bonds. TEMP RESO. #13115 PAGE 29 SECTION 4.03. CONSTRUCTION FUND. The Issuer covenants and agrees to establish a separate fund to be known as the "City of Tamarac Capital Improvement Revenue Bonds, Series 2018 Construction Fund," which shall be used only for payment of the Cost of the Project. Moneys in the Construction Fund, until applied in payment of any item of the Cost of a Project in accordance with the provisions hereof, shall be held in trust by the Issuer and shall be subject to alien and charge in favor of the Holders of the Bonds and for the further security of such Bondholders. SECTION 4.04. FUNDS AND ACCOUNTS. The Issuer covenants and agrees to establish a separate fund to be known as the "City of Tamarac Capital Improvement Revenue Bonds, Series 2018 Debt Service Fund" (the "Debt Service Fund"). The Issuer shall maintain in the Debt Service Fund three accounts: the "Interest Account," the 'Principal Account, and the "Bond Amortization Account". Moneys in the aforementioned funds and accounts, until applied in accordance with the provisions hereof, shall be subject to alien and charge in favor of the Bondholders and for the further security of the Bondholders. SECTION 4.05. FLOW OF FUNDS. (1) Pursuant to Section 4.02 hereof, Non -Ad Valorem Revenues shall be deposited or credited at least five (5) business days prior to the applicable due date, in the following manner: (a) Interest Account. The Issuer shall deposit into or credit to the Interest Account the sum which, together with the balance in said Account, shall be equal to the interest on all outstanding Bonds accrued and unpaid and to accrue on such Interest Date. Moneys in the Interest Account shall be used to pay interest on the Bonds as and when the same become due, whether by redemption or otherwise, and for no other purpose. (b) Principal Account. The Issuer shall deposit into or credit to the Principal Account the sum which, together with the balance in said Account, shall equal the portion of the principal on the Outstanding Bonds next due. Moneys in the Principal Account shall be used to pay the principal of the Bonds as and when the same shall mature, and for no other purpose. (c) Bond Amortization Account. The Issuer shall deposit into or credit to the Bond Amortization Account the sum which, together with the balance in said Account, shall equal the portion of the Amortization Installments of all Bonds Outstanding next due. Moneys in the Bond Amortization Account shall be used to purchase or redeem Term Bonds in the manner herein provided, and for no other purpose. Payments to the Bond Amortization Account shall be on a parity with payments to the Principal Account. (2) On the date established for payment of any principal of or Redemption Price, if applicable, or interest on the Bonds, the Issuer shall withdraw from the appropriate account of TEMP RESO. #13115 PAGE 30 the Debt Service Fund sufficient moneys to pay such principal or Redemption Price, if applicable, or interest and deposit such moneys with the Paying Agent for the Bonds to be paid. SECTION 4.06. INVESTMENTS. The Construction Fund and the Debt Service Fund shall be continuously secured in the manner by which the deposit of public funds are authorized to be secured by the laws of the State. Moneys on deposit in the Construction Fund and the Debt Service Fund may be invested and reinvested in Permitted Investments maturing not later than the date on which the moneys therein will be needed. Any and all income received by the Issuer from the investment of moneys in each account of the Construction Fund, the Interest Account, the Principal Account, and the Bond Amortization Account shall be retained in such respective Fund or Account unless otherwise required by applicable law. Nothing contained in this Resolution shall prevent any Permitted Investments acquired as investments of or security for funds held under this Resolution from being issued or held in book -entry form on the books of the Department of the Treasury of the United States. Permitted Investments shall be valued at cost. SECTION 4.07. SEPARATE ACCOUNTS. The moneys required to be accounted for in each of the foregoing funds and accounts established herein may be deposited in a single account, and funds allocated to the various funds and accounts established herein may be _ invested in a common investment pool, provided that adequate accounting records are maintained to reflect and control the restricted allocation of the moneys on deposit therein and such investments for the various purposes of such funds and accounts as herein provided. The designation and establishment of the various funds and accounts in and by this Resolution shall not be construed to require the establishment of any completely independent, self -balancing funds as such term is commonly defined and used in governmental accounting, but rather is intended solely to constitute an earmarking of certain revenues for certain purposes and to establish certain priorities for application of such revenues as herein provided. TEMP RESO. #13115 PAGE 31 ARTICLE V OTHER OBLIGATIONS AND COVENANTS OF ISSUER SECTION 5.01. ANTI -DILUTION TEST. During such time as the Bonds are Outstanding hereunder, the Issuer agrees and covenants not to incur any Debt unless it demonstrates that Non -Ad Valorem Revenues shall cover Maximum Annual Debt Service on the Bonds and such Debt by at least 1.5x. The calculation required in the preceding sentence shall be determined using the average of actual Non -Ad Valorem Revenues for the prior two Fiscal Years based on the Issuer's annual audited financial statements for such Fiscal Years. For the purposes of the covenants contained in this Section 5.01, Maximum Annual Debt Service on Debt means, with respect to Debt that bears interest at a fixed interest rate, the actual annual debt service, and, with respect to Debt which bears interest at a variable interest rate, annual debt service on such Debt shall be determined assuming that interest accrues on such Debt at the current "Bond Buyer Revenue Bond Index" as published in The Bond Buyer no more than two weeks prior to any such calculation; provided, however, if any Debt, whether bearing interest at a fixed or variable interest rate, constitutes Balloon Indebtedness, as defined in the immediately following sentence, annual debt service on such Debt shall be determined assuming such Debt is amortized over 25 years on an approximately level debt service basis. For purposes of the foregoing sentence, "Balloon Indebtedness" means Debt, 25% or more of the original principal of which matures or is obligated to be repaid during any one Fiscal Year. The foregoing notwithstanding, for purposes of calculating annual debt service, any Debt which bears interest at a variable rate with respect to which the Issuer has entered into an interest rate swap or interest rate cap for a notional amount equal to the principal amount of such variable rate indebtedness shall be treated for purposes of this Section 5.01 as bearing interest at a fixed rate equal to the fixed rate payable by the Issuer under the interest rate swap, or the capped rate provided by the interest rate cap. With respect to debt service on any Debt with respect to which the Issuer elects to receive or is otherwise entitled to receive direct subsidy payments from the United States Department of Treasury, when determining the interest on such Debt for any particular interest payment date the amount of the corresponding subsidy payment shall be deducted from the amount of interest which is due and payable with respect to such Debt on the interest payment date, but only to the extent that the Issuer reasonably believes that it will be in receipt of such subsidy payment on or prior to such interest payment date. In that case, such direct subsidy payments shall not be treated as Non -Ad Valorem Revenues to avoid double counting. SECTION 5.02. BOOKS AND RECORDS. The Issuer shall keep proper books, records and accounts of the receipt of the Non -Ad Valorem Revenues in accordance with generally accepted accounting principles, and any Holders of Bonds shall have the right at all reasonable times to inspect such books, records, accounts and data of the Issuer relating thereto. The Issuer shall, by each April 301h following the close of each Fiscal Year of the Issuer, cause an TEMP RESO. #13115 PAGE 32 audit of such books, records and accounts to be made by an independent firm of certified public accountants. Copies of each such audit report shall be placed on file with the Issuer and be made available at reasonable times for inspection by Holders of the Bonds. SECTION 5.03. ANNUAL AUDIT. The Issuer shall cause the financial statements of the Issuer to be properly audited by a recognized independent certified public accountant or recognized independent firm of certified public accountants, and shall require such accountants to complete their report on the annual financial statements in accordance with applicable law. Such annual financial statements shall contain, but not be limited to, a balance sheet, a statement of revenues, expenditures and changes in fund balance, and any other statements as required by law or accounting convention, and a report by such accountants disclosing any material default on the part of the Issuer of any covenant or agreement herein which is disclosed by the audit of the financial statements. The annual financial statements shall be prepared in conformity with generally accepted accounting principles. SECTION 5.04. NO IMPAIRMENT. The pledging of the Pledged Funds in the manner provided herein shall not be subject to repeal, modification or impairment by any subsequent ordinance, resolution or other proceedings of the City Commission of the Issuer. SECTION 5.05. FEDERAL INCOME TAX COVENANTS. (A) The Issuer covenants with the Holders that it shall not use the proceeds of such Bonds in any manner which would cause the interest on such Bonds to be or become includable in the gross income of the Holder thereof for federal income tax purposes. (B) The Issuer covenants with the Holders that neither the Issuer nor any Person under its control or direction will make any use of the proceeds of such Bonds (or amounts deemed to be proceeds under the Code) in any manner which would cause such Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code and neither the Issuer nor any other Person shall do any act or fail to do any act which would cause the interest on such Bonds to become includable in the gross income of the Holder thereof for federal income tax purposes. (C) The Issuer hereby covenants with the Holders that it will comply with all provisions of the Code necessary to maintain the exclusion of interest on such Bonds from the gross income of the Holder thereof for federal income tax purposes, including, in particular, the payment of any amount required to be rebated to the U.S. Treasury pursuant to the Code. (D) There is hereby created and established a fund to be known as the "City of Tamarac Capital Improvement Revenue Bonds, Series 2018 Rebate Fund," and a separate account therein for each Series of Bonds. The Issuer shall deposit into the appropriate account in the Rebate Fund, from investment earnings on moneys deposited in the other funds and accounts created hereunder, or from any other legally available funds of the Issuer, an amount TEMP RESO. #13115 PAGE 33 _. equal to the Rebate Amount for such Rebate Year. The Issuer shall use such moneys deposited in the appropriate account in the Rebate Fund only for the payment of the Rebate Amount to the United States as required by this Section 5.05. In complying with the foregoing, the Issuer may rely upon any instructions or opinions from Bond Counsel. If any amount shall remain in the Rebate Fund after payment in full of all Bonds issued hereunder and after payment in full of the Rebate Amount to the United States in accordance with the terms hereof, such amounts shall be available to the Issuer for any lawful purpose. The Rebate Fund shall be held separate and apart from all other funds and accounts of the Issuer, shall not be impressed with alien in favor of the Holders and the moneys therein shall be available for use only as herein provided. ARTICLE VI DEFAULTS AND REMEDIES SECTION 6.01. EVENTS OF DEFAULT. The following events shall each constitute an "Event of Default:" (1) The Issuer shall fail to make payment of the principal of, Amortization Installment, redemption premium or interest on any Bond when due. (2) There shall occur the dissolution or liquidation of the Issuer, or the filing by the Issuer of a voluntary petition in bankruptcy, or the commission by the Issuer of any act of bankruptcy, or adjudication of the Issuer as a bankrupt, or assignment by the Issuer for the benefit of its creditors, or appointment of a receiver for the Issuer, or the entry by the Issuer into an agreement of composition with its creditors, or the approval by a court of competent jurisdiction of a petition applicable to the Issuer in any proceeding for its reorganization instituted under the provisions of the Federal Bankruptcy Act, as amended, or under any similar act in any jurisdiction which may now be in effect or hereafter enacted. (3) The Issuer shall default in the due and punctual performance of any other of the covenants, conditions, agreements and provisions contained in the Bonds or in this Resolution on the part of the Issuer to be performed, and such default shall continue for a period of thirty (30) days after written notice of such default shall have been 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 such action until the default has been corrected. SECTION 6.02. REMEDIES. Any Holder of Bonds issued under the provisions of this Resolution or any trustee or receiver acting for such Bondholders may either at law or in equity, by suit, action, mandamus or other proceedings in any court of competent jurisdiction, protect and enforce any and all rights under the laws of the State, or granted and contained in TEMP RESO. #13115 PAGE 34 this Resolution, and may enforce and compel the performance of all duties required by this Resolution or by any applicable statutes to be performed by the Issuer or by any officer thereof. The Holders of Bonds in an aggregate principal amount of not less than twenty-five percent (25%) of the Bonds then Outstanding may by a duly executed certificate in writing appoint a trustee for Holders of Bonds issued pursuant to this Resolution with authority to represent such Bondholders in any legal proceedings for the enforcement and protection of the rights of such Bondholders and such certificate shall be executed by such Bondholders or their duly authorized attorneys or representatives, and shall be filed in the office of the City Manager. 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 and the trust instrument under which the trustee shall have agreed to serve shall be filed with the Issuer and the trustee and notice of appointment shall be given to all Holders of Bonds in the same manner as notices of redemption are given hereunder. After the appointment of the first trust hereunder, no further trustees may be appointed; however, the Holders of a majority in aggregate principal amount of all the Bonds then Outstanding may remove the trustee initially appointed and appoint a successor and subsequent successors at any time. SECTION 6.03. DIRECTIONS TO TRUSTEE AS TO REMEDIAL PROCEEDINGS. The Holders of a majority in principal amount of the Bonds then Outstanding shall have the right, by an instrument or concurrent instruments in writing executed and delivered to the trustee, to direct the method and place of conducting all remedial proceedings to be taken by the trustee hereunder, provided that such direction shall not be otherwise than in accordance with law or the provisions hereof, and that the trustee shall have the right to decline to follow any such direction which in the opinion of the trustee would be unjustly prejudicial to Holders of Bonds not parties to such direction. SECTION 6.04. REMEDIES CUMULATIVE. No remedy herein conferred upon or reserved to the Bondholders is intended to be exclusive of any other remedy or remedies, and each and every such remedy shall be cumulative, and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute. SECTION 6.05. WAIVER OF DEFAULT. No delay or omission of any Bondholder to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default, or an acquiescence therein; and every power and remedy given by Section 6.02 of this Resolution to the Bondholders may be exercised from time to time, and as often as may be deemed expedient. SECTION 6.06. APPLICATION OF MONEYS AFTER DEFAULT. If an Event of Default shall happen and shall not have been remedied, the Issuer or a trustee or receiver appointed for the purpose shall apply all Pledged Funds as follows and in the following order: TEMP RESO. #13115 PAGE 35 (1) To the payment of the reasonable and proper charges, expenses and liabilities of the trustee or receiver, Registrar and Paying Agent hereunder; and (2) To the payment of the interest and principal or Redemption Price, if applicable, then due on the Bonds, as follows: (A) Unless the principal of all the Bonds shall have become due and payable, 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 amount available shall not be sufficient to pay in full any particular installment, then to the payment ratably, according to the amounts due on such installment, to the Persons entitled thereto, without any discrimination or preference; SECOND: to the payment to the Persons entitled thereto of the unpaid principal of any of the Bonds which shall have become due at maturity or upon mandatory redemption prior to maturity (other than Bonds called for redemption for the payment of which moneys are held pursuant to the provisions of Section 8.01 of this Resolution), in the order of their due dates, with interest upon such Bonds from the respective dates upon which they became due, and, if the amount available shall not be sufficient to pay in full Bonds due on any particular date, together with such interest, then to the payment first of such interest, ratably according to the amount of such interest due on such date, and then to the payment of such principal, ratably according to the amount of such principal due on such date, to the Persons entitled thereto without any discrimination or preference; and THIRD: to the payment of the Redemption Price of any Bonds called for optional redemption pursuant to the provisions of this Resolution. (B) If the principal of all the Bonds shall have become due and payable, all such moneys shall be applied to the payment of the principal and interest then due and unpaid upon the Bonds, with interest thereon as aforesaid, without preference or priority of principal over interest or of interest over principal, or of any installment of interest over any other installment of interest, or of any Bond over any other Bond, ratably, according to the amounts due respectively for principal and interest, to the Persons entitled thereto without any discrimination or preference. ARTICLE VII SUPPLEMENTAL RESOLUTIONS SECTION 7.01. SUPPLEMENTAL RESOLUTIONS WITHOUT BONDHOLDERS' CONSENT. The Issuer, from time to time and at any time, may adopt such TEMP RESO. #13115 PAGE 36 Supplemental Resolutions without the consent of the Bondholders (which Supplemental Resolutions shall thereafter form a part hereof) for any of the following purposes: (1) To cure any ambiguity or formal defect or omission or to correct any inconsistent provisions in this Resolution or to clarify any matters or questions arising hereunder. (2) To grant to or confer upon the Bondholders any additional rights, remedies, powers, authority or security that may lawfully be granted to or conferred upon the Bondholders. (3) To add to the conditions, limitations and restrictions on the issuance of Bonds under the provisions of this Resolution other conditions, limitations and restrictions thereafter to be observed. (4) To add to the covenants and agreements of the Issuer in this Resolution other covenants and agreements thereafter to be observed by the Issuer or to surrender any right or power herein reserved to or conferred upon the Issuer. (5) To specify and determine the matters and things referred to in Sections 2.01 or 2.02 hereof, and also any other matters and things relative to such Bonds which are not contrary to or inconsistent with this Resolution as theretofore in effect, or to amend, modify or rescind any such authorization, specification or determination at any time prior to the first delivery of such Bonds. (6) To change or modify the description of the Project. (7) To make any other change that, in the opinion of the Issuer, would not materially adversely affect the security for the Bonds. SECTION 7.02. SUPPLEMENTAL RESOLUTIONS WITH BONDHOLDERS' CONSENT. Subject to the terms and provisions contained in this Section 7.02 and Section 7.01 hereof, the Holders of not less than a majority in aggregate principal amount of the Bonds then Outstanding shall have the right, from time to time, anything contained in this Resolution to the contrary notwithstanding, to consent to and approve the adoption of such Supplemental Resolution or resolutions hereto as shall be deemed necessary or desirable by the Issuer for the purpose of supplementing, modifying, altering, amending, adding to or rescinding, in any particular, any of the terms or provisions contained in this Resolution. No Supplemental Resolution may be approved or adopted which shall permit or require (A) an extension of the maturity of the principal of or the payment of the interest on any Bond issued hereunder, (B) reduction in the principal amount of any Bond or the Redemption Price or the rate of interest thereon, (C) the creation of a lien upon or a pledge of other than the lien and pledge created by this Resolution which adversely affects any Bondholders, (D) a preference or priority of any Bond or Bonds over any other Bond or Bonds, or (E) a reduction in the aggregate principal amount of the Bonds required for consent to such Supplemental Resolution, unless such TEMP RESO. #13115 PAGE 37 Supplemental Resolution has the approval of 100% of the Bondholders. Nothing herein contained, however, shall be construed as making necessary the approval by Bondholders of the adoption of any Supplemental Resolution as authorized in Section 7.01 hereof. If, at any time the Issuer shall determine that it is necessary or desirable to adopt any Supplemental Resolution pursuant to this Section 7.02, the City Clerk shall cause the Registrar to give notice of the proposed adoption of such Supplemental Resolution and the form of consent to such adoption to be mailed, postage prepaid, to all Bondholders at their addresses as they appear on the registration books. Such notice shall briefly set forth the nature of the proposed Supplemental Resolution and shall state that copies thereof are on file at the offices of the City Clerk and the Registrar for inspection by all Bondholders. The Issuer shall not, however, be subject to any liability to any Bondholder by reason of its failure to cause the notice required by this Section 7.02 to be mailed and any such failure shall not affect the validity of such Supplemental Resolution when consented to and approved as provided in this Section 7.02. Whenever the Issuer shall deliver to the City Clerk an instrument or instruments in writing purporting to be executed by the Holders of not less than a majority in aggregate principal amount of the Bonds then Outstanding, which instrument or instruments shall refer to the proposed Supplemental Resolution described in such notice and shall specifically consent to and approve the adoption thereof in substantially the form of the copy thereof referred to in such notice, thereupon, but not otherwise, the Issuer may adopt such Supplemental Resolution in substantially such form, without liability or responsibility to any Holder of any Bond, whether or not such Holder shall have consented thereto. If the Holders of not less than a majority in aggregate principal amount of the Bonds Outstanding at the time of the adoption of such Supplemental Resolution shall have consented to and approved the adoption thereof as herein provided, no Holder of any Bond shall have any right to object to the adoption of such Supplemental Resolution, or to object to any of the terms and provisions contained therein or the operation thereof, or in any manner to question the propriety of the adoption thereof, or to enjoin or restrain the Issuer from adopting the same or from taking any action pursuant to the provisions thereof. Upon the adoption of any Supplemental Resolution pursuant to the provisions of this Section 7.02, this Resolution shall be deemed to be modified and amended in accordance therewith, and the respective rights, duties and obligations under this Resolution of the Issuer and all Holders of Bonds then Outstanding shall thereafter be determined, exercised and enforced in all respects under the provisions of this Resolution as so modified and amended. ARTICLE VIII MISCELLANEOUS SECTION 8.01. DEFEASANCE. If the Issuer shall pay or cause to be paid, or there shall otherwise be paid to the Holders of all Bonds, the principal or Redemption Price, if TEMP RESO. #13115 PAGE 38 applicable, and interest due or to become due thereon, at the times and in the manner stipulated therein and in this Resolution, then the pledge of the Pledged Funds, and all covenants, agreements and other obligations of the Issuer to the Bondholders, shall thereupon cease, terminate and become void and be discharged and satisfied. In such event, the Paying Agents shall pay over or deliver to the Issuer all money or securities held by them pursuant to this Resolution which are not required for the payment or redemption of Bonds not theretofore surrendered for such payment or redemption. Any Bonds or interest installments appertaining thereto, whether at or prior to the maturity or redemption date of such Bonds, shall be deemed to have been paid within the meaning of this Section 8.01 if (A) in case any such Bonds are to be redeemed prior to the maturity thereof, there shall have been taken all action necessary to call such Bonds for redemption and notice of such redemption shall have been duly given or provision shall have been made for the giving of such notice, and (B) there shall have been deposited in irrevocable trust with a banking institution or trust company by or on behalf of the Issuer either moneys in an amount which shall be sufficient, or Defeasance Securities the principal of and the interest on which when due will provide moneys which, together with the moneys, if any, deposited with such bank or trust company at the same time shall be sufficient, to pay the principal of or Redemption Price, if applicable, and interest due and to become due on said Bonds on and prior to the redemption date or maturity date thereof, as the case may be. Except as hereafter provided, neither the Defeasance Securities nor any moneys so deposited with such bank or trust company nor any moneys received by such bank or trust company on account of principal of or Redemption Price, if applicable, or interest on said Defeasance Securities shall be withdrawn or used for any purpose other than, and all such moneys shall be held in trust for and be applied to, the payment, when due, of the principal of or Redemption Price, if applicable, of the Bonds for the payment or redemption of which they were deposited and the interest accruing thereon to the date of maturity or redemption; provided, however, the Issuer may substitute new Defeasance Securities and moneys for the deposited Defeasance Securities and moneys if the new Defeasance Securities and moneys are sufficient to pay the principal of or Redemption Price, if applicable, and interest on the Bonds. In the event the Bonds for which moneys are to be deposited for the payment thereof in accordance with this Section 8.01 are not by their terms subject to redemption within the next succeeding sixty (60) days, the Issuer shall cause the Registrar to mail a notice to the Holders of such Bonds that the deposit required by this Section 8.01 of moneys or Defeasance Securities has been made and said Bonds are deemed to be paid in accordance with the provisions of this Section 8.01 and stating such maturity or redemption date upon which moneys are to be available for the payment of the principal of or Redemption Price, if applicable, and interest on said Bonds. Nothing herein shall be deemed to require the Issuer to call any of the Outstanding Bonds for redemption prior to maturity pursuant to any applicable optional redemption TEMP RESO. #13115 PAGE 39 provisions, or to impair the discretion of the Issuer in determining whether to exercise any such option for early redemption. SECTION 8.02. PRELIMINARY AND FINAL OFFICIAL STATEMENT. (1) The preparation and distribution of a Preliminary Official Statement relating to the Bonds is hereby approved and authorized, as is the use thereof by the Underwriters in connection with the sale of the Bonds. The City Manager of the Issuer is hereby authorized to execute and deliver a certificate of the Issuer which deems the Preliminary Official Statement "final" within the contemplation of Rule 15c2-12 of the Securities and Exchange Commission. (2) The Issuer hereby ratifies and approves the Preliminary Official Statement in substantially the form attached hereto as Exhibit "D". The Issuer hereby authorizes execution by the Mayor, City Manager and the Director of Financial Services, and the delivery of, a final Official Statement which incorporates the terms and provisions set forth in the Purchase Contract. SECTION 8.03. SALE OF BONDS. Due to the willingness of the Underwriters to purchase the Bonds at market interest costs favorable to the Issuer and the critical importance of timing of the sale of the Bonds, it is hereby determined that it is in the best interest of the public and the Issuer to sell the Bonds at a negotiated sale (rather than through a competitive bid) and such sale to the Underwriters (pursuant to the terms and conditions contained in the Resolution, herein and in the Purchase Contract) is hereby authorized and approved. SECTION 8.04. PAYING AGENT AND REGISTRAR. U.S. Bank, National Association, Jacksonville, Florida is hereby appointed as Paying Agent and Registrar with respect to the Bonds. An agreement with the Paying Agent and Registrar shall be executed and delivered by the Mayor and the City Manager, shall be attested by the City Clerk and shall be approved as to form by the manual signature of the City Attorney. SECTION 8.05. DISCLOSURE DISSEMINATION AGENT AGREEMENT. The Issuer hereby covenants and agrees that, in order to assist the Underwriters in complying with the continuing disclosure requirements of Rule 15c2-12 of the Securities and Exchange Commission with respect to the Bonds, it will comply with and carry out all of the provisions of the Disclosure Dissemination Agent Agreement to be executed by the Issuer and the Dissemination Agent thereto prior to the time the Issuer delivers the Bonds to the Underwriters, as it may be amended from time to time in accordance with the terms thereof. The Disclosure Dissemination Agent Agreement, in substantially the form attached hereto as Exhibit "C," is hereby approved and ratified, and shall be executed and delivered by the Mayor and the City Manager, shall be attested by the City Clerk and shall be approved as to form by the manual signature of the City Attorney (with such changes and filling of blanks as shall be approved by the Mayor and the City Manager). Notwithstanding any other provision of this Resolution, failure of the Issuer to comply with such Disclosure Dissemination Agent Agreement shall not be considered an Event of Default under the Resolution. However, the Disclosure Dissemination Agent Agreement shall be enforceable by the Bondholders in the event that the Issuer fails to TEMP RESO. #13115 PAGE 40 cure a breach thereunder within a reasonable time after written notice from a Bondholder to the Issuer that a breach exists. Any rights of the Bondholders to enforce the provisions of the covenant shall be on behalf of all Bondholders and shall be limited to a right to obtain specific performance of the Issuer's obligations thereunder. Digital Assurance Certification, L.L.C. is hereby appointed as the initial dissemination agent with respect to the Bonds. SECTION 8.06. GENERAL AUTHORITY. The members of the City Commission of the Issuer, the City Manager, the City Attorney, the Director of Financial Services and all other of the Issuer's officers, attorneys and other agents and employees are hereby authorized to perform all acts and things required of them by this Resolution or any Supplemental Resolution or desirable or consistent with the requirements hereof for the full, punctual and complete performance of all of the terms, covenants and agreements contained in the Bonds, this Resolution, and any Supplemental Resolution, and they are hereby authorized to execute and deliver all documents which shall be required by Bond Counsel or the initial purchasers of the Bonds to effectuate the sale of the Bonds to said initial purchasers and any representation made in such documents 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 Bonds is hereby approved, confirmed and ratified. SECTION 8.07. INTERESTED PARTIES. Nothing in this Resolution expressed or implied is intended or shall be construed to confer upon, or to give to, any person or entity, other than the Issuer, the Paying Agent, and the registered Holders of the Bonds, any right, remedy or claim under or by reason of this Resolution or any covenant, condition or stipulation thereof, and all covenants, stipulations, promises and agreements in this Resolution contained by and on behalf of the Issuer shall be for the sole and exclusive benefit of the Issuer, the Paying Agent, and the registered Holders of the Bonds. SECTION 8.08. NO PERSONAL LIABILITY. Neither the members of the City Commission of the Issuer, the City Manager, the Director of Financial Services, nor any person executing the Bonds shall be personally liable therefor or be subject to any personal liability or accountability by reason of the issuance thereof. SECTION 8.09. SEVERABILITY OF INVALID PROVISIONS. If any one or more of the covenants, agreements or provisions of this Resolution shall be held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separable from the remaining covenants, agreements and provisions of this Resolution and shall in no way affect the validity of any of the other covenants, agreements or provisions hereof or of the Bonds issued hereunder. SECTION 8.10. REPEAL OF INCONSISTENT RESOLUTIONS. All resolutions or parts thereof in conflict herewith are hereby superseded and repealed to the extent of such conflict. TEUT RESO. #13115 PAGE 41 [Remainder of page intentionally left blank] TEMP RESO. #13115 PAGE 42 SECTION 8.11. EFFECTIVE DATE. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED THE 13th DAY OF JUNE, 2018. CITY OF TAMARAC, FLORIDA Harry Dressler, Mayor ATTEST: RECORD OF COMMISSION VOTE: MAYOR DRESSLER DIST 1: COMM. BOLTON DIST 2: V/M GOMEZ DIST 3: COMM. FISHMAN DIST 4: COMM. PLACKO I HEREBY CERTIFY THAT I HAVE APPROVED THIS RESOLUTION Evivrelffiell-I'mu Y"�"'a'AAJ wItI1161 SAMUtL S. GOREN CITY ATTORNEY TEMP RESO. #13115 PAGE 43 EXHIBIT A THE PROJECT DESCRIPTION The Project will include the acquisition, design, construction, reconstruction, and equipping of capital improvements as follows: 1 Multiple Sound Walls 2 Fire Station #36 3 Waters Edge Park n TEMP RESO. #13115 PAGE 44 EXHIBIT B FORM OF PURCHASE CONTRACT ,^ n n BOND PURCHASE AGREEMENT $ CITY OF TAMARAC, FLORIDA Capital Improvement Revenue Bonds, Series 2018 City of Tamarac, Florida Tamarac, Florida 34749 Ladies and Gentlemen: June ,2018 The undersigned, Stifel, Nicolaus & Company, Incorporated (the "Representative") acting on its own behalf and on behalf ofRBC Capital Markets, LLC and UBS Financial r-� Services Inc. (collectively, the "Underwriters"), offers to enter into this Bond Purchase Agreement (this "Agreement") with the City of Tamarac, Florida (the "Issuer") which, upon the Issuer's written acceptance ofthis offer, will be binding upon the Issuer and upon the Underwriters. This offer is made subject to the Issuer's written acceptance hereof on or before 11:59 p.m., Eastern Daylight Time, on June_, 2018, and, if not so accepted, will be subj ect to withdrawal by the Underwriters upon written notice delivered to the Issuer at anytime prior to the acceptance hereofby the Issuer. Terms not otherwise defined in this Agreement shall have the same meanings set forth in the Bond Resolution or in the Official Statement (each as defined herein). 1. Purchase and Sale of the Bonds. Subject to the terms and conditions and in reliance upon the representations, warranties and agreements set forth herein, the Underwriters hereby agree to purchase from the Issuer, and the Issuer hereby agrees to sell and deliver to the Underwriters, all, but not less than all, of the Issuer's Capital Improvement Revenue Bonds, Series 2018 (the "Bonds"). The Issuer acknowledges and agrees that: (i) the primary role of the Underwriters, as underwriters, is to purchase securities, for resale to investors, in an arm's-length commercial transaction between the Issuer and the Underwriters and that the Underwriters have financial and other interests that differ from those of the Issuer; (ii) the Underwriters are not acting as a municipal advisor, financial advisor, or fiduciary to the Issuer and have not assumed any advisory or fiduciary responsibility to the Issuer with respect to the transaction contemplated hereby and the discussions, undertakings and procedures leading thereto (irrespective of whether r-N the Underwriters have provided other services or are currently providing other services to the Issuer on other matters); (iii) the only obligations the Underwriters have to the Issuer with respect to the transactions contemplated hereby expressly are set forth in this Agreement and the other Issuer Documents (defined herein); and (iv) the Issuer has consulted its own financial and/or municipal, legal, accounting, tax and other advisors, as applicable, to the extent it deems appropriate. The principal amount of the Bonds to be issued, the dated date therefor, the maturities, interest rates per annum, prices and/or yields and sinking fund and optional redemption provisions therefore are set forth in Schedule I hereto. The Bonds shall be as described in, and shall be issued and secured under andpursuant to the Constitution ofthe State of Florida (the "State"), Chapter 166, Part II, Florida Statutes, as amended, the municipal charter of the Issuer, and other applicable provisions of law (collectively, the "Act"), and pursuant to the provisions of Resolution No. R- , adopted by the Issuer on June , 2018, as it may be amended and supplemented from time to time (the "Bond Resolution"). The purchase price for the Bonds is $ (representing the par amount of the Bonds of $ , [plus/minus] [net] original issue [premium/discount] of $ and less an underwriting discount of$ ). In connection with the execution of this Agreement, the Representative, on behalf of the Underwriters, has delivered to the Issuer a wire transfer credited to the order of the Issuer in immediately available federal funds in the aggregate amount of ONE HUNDRED NINETY THOUSAND Dollars ($190,000.00) (the "Good Faith Deposit"), which is being delivered to the Issuer on account of the purchase price of the Bonds and as security for the performance by the Underwriters of their obligation to accept and to pay for the Bonds. If the Issuer does not accept this offer, the Good Faith Deposit shall be immediately returned to the Representative by wire transfer credited to the order of the Representative in the amount of the Good Faith Deposit, in federal funds to the Representative. In the event the Closing (as defined in Section 6 hereof) takes place, the amount of the Good Faith Deposit shall be credited against the purchase price of the Bonds described herein. In the event of the Issuer's failure to deliver the Bonds at the Closing, or if the Issuer shall be unable at or prior to the Closing to satisfy the conditions to the obligations of the Underwriters contained in this Agreement (unless such conditions are waived by the Representative), or if the obligations of the Underwriters shall be terminated for any reason permitted by this Agreement, the Issuer shall immediately wire to the Representative in federal funds the Good Faith Deposit without interest, and such wire shall constitute a full release and discharge of all claims by the Underwriters against the Issuer arising out of the transactions contemplated by this Agreement. In the event that the Underwriters fail other than for a reason permitted under this Agreement to accept and pay for the Bonds upon their tender by the Issuer at the Closing, the amount of the Good Faith Deposit shall be retained by the Issuer and such retention shall represent full liquidated damages and not a penalty, for such failure and for any and all defaults on the part of the Underwriters and the retention of such funds shall constitute a full release and discharge of all claims, rights and 2 i"N damages for such failure and for any and all such defaults. It is understood by both the Issuer and the Underwriters that actual damages in the circumstances as described in the preceding sentence may be difficult or impossible to compute; therefore, the funds represented by the Good Faith Deposit are a reasonable estimate of the liquidated damages in this type of situation. In accordance with Section 218.385, Florida Statutes, the Underwriters hereby disclose the infonnation required by such Section, including a truth -in -bonding statement, as provided in Schedule II attached hereto. 2. Public Offering. The Underwriters agree to make a bona fide public offering of all of the Bonds at prices not to exceed the respective public offering prices set forth on the inside front cover of the Official Statement (the "Offering Prices") and may subsequently change such Offering Prices without any requirement of prior notice. The Underwriters may offer and sell Bonds to certain dealers (including dealers depositing Bonds into investment trusts) and others at prices lower than the Offering Prices to the extent allowed by the Internal Revenue Code of 1986, as amended (the "Code"). 3. Establishment oflssue Price. (a) The Representative, on behalf of the Underwriters, agrees to assist the Issuer and its Financial Advisor, Larson Consulting Services, LLC (the "Financial Advisor"), in establishing the issue price of the Bonds and shall execute and deliver to the Issuer at Closing an "issue price" or similar certificate, substantially in the form attached hereto as Exhibit A, with such modifications as may be appropriate or necessary, in the reasonable judgment of the Representative, the Issuer, the Financial Advisor and Bond Counsel, to accurately reflect, as applicable, the sales price or prices or the initial offering price or prices to the public of the Bonds. As applicable, all actions to be taken by the Issuer under this section to establish the issue price of the Bonds may be taken on behalf of the Issuer by the Financial Advisor identified herein and any notice or report to be provided to the Issuer may be provided to the Financial Advisor. (b) Except as otherwise set forth in Schedule A -I attached to Exhibit A hereto, the Issuer will treat the first price at which 10% of each maturity of the Bonds (the "10% test") is sold to the public as the issue price of that maturity (if different interest rates apply within a maturity, each separate CUSIP number within that maturity will be subject to the 10% test). At or promptly after the execution of this Agreement, the Representative shall report to the Issuer the price or prices at which the Underwriters have sold to the public each maturity of Bonds. If at that time the 10% test has not been satisfied as to any maturity of the Bonds, the Representative agrees to promptly report to the Issuer the prices at which the Underwriters sell the unsold Bonds of that maturity to the public. That reporting obligation shall continue, whether or not the Closing Date has occurred, until the 10% test has been satisfied as to the Bonds of that maturity or until all Bonds of that maturity have been sold to the public. W /*-N, (c) The Representative confirms that the Underwriters have offered the Bonds to the public on or before the date of this Agreement at the offering price or prices (the "initial offering price"), or at the corresponding yield or yields, set forth in Schedule A -I to Exhibit A attached hereto, except as otherwise set forth therein. Schedule A -I also sets forth, as of the date of this Agreement, the maturities, if any, of the Bonds for which the 10% test has not been satisfied and for which the Issuer and the Representative, on behalf of the Underwriters, agree that the restrictions set forth in the next sentence shall apply, which will allow the Issuer to treat the initial offering price to the public of each such maturity as of the sale date as the issue price of that maturity (the "hold -the -offering -price rule"). So long as the hold -the -offering -price rule remains applicable to any maturity of the Bonds, the Underwriters will neither offer nor sell unsold Bonds of that maturity to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier of the following: 01 the close of the fifth (5th) business day after the sale date; or (n) the date on which the Underwriters have sold at least 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public. The Representative shall promptly advise the Issuer when the Underwriters have sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public, if that occurs prior to the close of the fifth (5th) business day after the sale date. The Issuer acknowledges that, in making the representation set forth in this subsection, the Representative will rely on (i) the agreement of each Underwriter to comply with the hold -the -offering -price rule, as set forth in an agreement among underwriters and the related pricing wires, (ii) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the hold -the -offering -price rule, as set forth in a selling group agreement and the related pricing wires, and (iii) in the event that an Underwriter is a party to a retail distribution agreement that was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker -dealer that is a party to such agreement to comply with the hold -the -offering -price rule, as set forth in the retail distribution agreement and the related pricing wires. The Issuer further acknowledges that each Underwriter shall be solely liable for its failure to comply with its agreement regarding the hold -the -offering -price rule and that no Underwriter shall be liable for the failure of any other Underwriter, or of any dealer who is a member of a selling group, or of any broker -dealer that is a party to a retail distribution agreement, to comply with its corresponding agreement regarding the hold -the -offering -price rule as applicable to theBonds. n (d) The Representative confitms that: (i) any agreement among underwriters, any selling group agreement and each retail distribution agreement (to which the Representative is a parry) relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each Underwriter, each dealer who is a member of the selling group, and each broker -dealer that is a party to such retail distribution agreement, as applicable, to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allotted to it until it is notified by the Representative that either the 10% test has been satisfied as to the Bonds of that maturity or all Bonds of that maturity have been sold to the public and (B) comply with the hold -the -offering -price rule, if applicable, in each case if and for so long as directed by the Representative and as set forth in the related pricing wires, and @ any agreement among underwriters relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each Underwriter that is a party to a retail distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker -dealer that is a party to such retail distribution agreement to (A) report the prices at which it sells to the public the unsold Bonds of n each maturity allotted to it until it is notified by the Representative or the Underwriter that either the 10% test has been satisfied as to the Bonds of that maturity or all Bonds of that maturity have been sold to the public and (B) comply with the hold -the -offering -price rule, if applicable, in each case if and for so long as directed by the Representative or the Underwriter and as set forth in the related pncmg wires. (e) The Underwriters acknowledge that sales of any Bonds to any person that is a related party to an Underwriter shall not constitute sales to the public for purposes of this section. Further, for purposes of this section: (i) "public" means any person other than an underwriter or a related ply, (n) "underwriter" means (A) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to thepublic), (iii) a purchaser of any of the Bonds is a "related paiiy" to an underwriter 10111 if the underwriter and the purchaser are subject, directly or indirectly, to (i) at least 5 /" N, 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (ii) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (iii) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other), and (iv) "sale date" means the date of execution of this Agreement by all parties. 4. The Official Statement. (a) The Preliminary Official Statement dated , 2018 (the "Preliminary Official Statement"), including the cover page and Appendices thereto, of the Issuer relating to the Bonds, as amended to reflect the pricing terms of the Bonds is hereinafter called the "Official Statement." (b) The Preliminary Official Statement has been prepared by the Issuer for use by the Underwriters in connection with the public offering, sale and distribution of the Bonds. The Issuer hereby represents and warrants that the Preliminary Official Statement was "deemed final" by the Issuer as of its date, except for the omission of such information which is dependent upon the final pricing of the Bonds for completion, all as permitted to be excluded by Section (b)(1) of Rule 15c2-I2 under the Securities Exchange Act of 1934, as amended (the "Rule"). (c) The Issuer hereby authorizes the Official Statement to be used by the Underwriters in connection with the public offering and the sale of the Bonds. The Issuer shall use best efforts to provide, or cause to be provided, to the Underwriters as soon as practicable after the date of the Issuer's acceptance of this Agreement (but, in any event, not later than within seven business days after the Issuer's acceptance of this Agreement and in sufficient time to accompany any confirmation that requests payment from any customer) copies of the Official Statement which is complete as of the date of its delivery to the Underwriters in such quantity as the Representative shall request in order for the Underwriters to comply with Section (b)(4) of the Rule and the rules of the Municipal Securities Rulemaking Board (the "MSRB"). The Issuer hereby confinns that it does not object to the distribution of the Official Statement in electronic form. (d) If, after the date of this Agreement to and including the date the Underwriters are no longer required to provide an Official Statement to potential customers who request the same pursuant to the Rule (the earlier of (i) 90 days from the "end of the underwriting period" (as defined in the Rule) and (ii) the time when the Official Statement is available to any person from the MSRB, but in no case less than 25 days after the "end of the underwriting period" for the Bonds), the Issuer becomes aware of any fact or event which G9 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 required to be stated therein or necessary to make the statements therein not misleading, or if it is necessary to amend or supplement the Official Statement to comply with law, the Issuer will notify the Representative (and for the purposes of this clause provide the Representative with such information as it may from time to time request), and if, in the reasonable opinion of the Representative, such fact or event requires preparation and publication of a supplement or amendment to the Official Statement, the Issuer will forthwith prepare and furnish, at the Issuer's own expense (in a form and manner approved by the Representative), a reasonable number of copies of either amendments or supplements to the Official Statement so that the statements in the Official Statement as so amended and supplemented will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading or so that the Official Statement will comply with law. If such notification shall be subsequent to the Closing, the Issuer shall furnish such legal opinions, certificates, instruments and other documents as the Representative may deem reasonably necessary to evidence the truth and accuracy of such supplement or amendment to the Official Statement. (e) The Representative hereby agrees to file the Official Statement as required by the MSRB. Unless otherwise notified in writing by the Representative, the Issuer can assume that the "end of the underwriting period" for purposes of the Rule is the date of the Closing. 5. Representations, Warranties, and Covenants of the Issuer. The Issuer hereby represents and warrants to and covenants with the Underwriters that to the best of its knowledge, information and belief: (a) The Issuer is validly existing as a municipal corporation of the State duly created, organized and existing under the Act, and has full legal right, power and authority under the Act, and at the date of the Closing will have full legal right, power and authority under the Act and the Bond Resolution (i) to enter into, execute and deliver this Agreement, the Bond Resolution and the Disclosure Dissemination Agent Agreement relating to the Bonds (the "Undertaking") and all other documents required hereunder and thereunder to be executed and delivered by the Issuer (this Agreement, the Bond Resolution, the Undertaking and such other documents referred to in this clause are hereinafter referred to as the "Issuer Documents"), (ii) to sell, issue and deliver the Bonds to the Underwriters as provided herein, (iii) to carry out and consummate the transactions contemplated by the Issuer Documents and the Official Statement and (iv) to finance and reimburse the Costs of the Project (as defined in the Bond Resolution), and as of the date hereof, the Issuer has complied in all respects with the terms of the Act and the Issuer Documents as they pertain to such transactions; 7 (b) By all necessary official action of the Issuer prior to or concurrently with the acceptance hereof, the Issuer has duly authorized all necessary action to be taken by it for (i) the adoption of the Bond Resolution and the issuance and sale of the Bonds, (ii) the approval, execution and delivery of, and the performance by the Issuer of the obligations on its part, contained in the Bonds and the Issuer Documents and (iii) the consummation by it of all other transactions contemplated by the Official Statement, and the Issuer Documents and any and all such other agreements and documents as may be required to be executed, delivered and/or received by the Issuer in order to carry out, give effect to, and consummate the transactions contemplated herein and in the Official Statement, in each case excepting any authorization that cannot be obtained prior to or concurrently with the date of this Agreement; (c) When executed by the respective parties hereto and thereto, the Issuer reasonably expects as of the date hereof that the Issuer Documents will constitute legal, valid and binding obligations of the Issuer, enforceable in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws and principles of equity relating to or affecting the enforcement of creditors' rights; the Bonds, when issued, delivered and paid for, in accordance with the Bond Resolution and this Agreement, will constitute legal, valid and binding obligations of the Issuer entitled to the benefits of the Bond Resolution and enforceable in accordance with their terms, subject to bankruptcy, insolvency, reorganization, moratorium and other similar /0-N, laws and principles of equity relating to or affecting the enforcement of creditors' rights; upon the issuance, authentication and delivery of the Bonds as aforesaid, the Bond Resolution will provide, for the benefit of the holders, from time to time, of the Bonds, the legally valid and binding pledge of and lien on the Pledged Funds it purports to create as set forth in the Bond Resolution; (d) The Issuer is lawfully empowered to budget and appropriate Non -Ad Valorem Revenues as provided in the Bond Resolution and pledge and grant a lien upon the Pledged Funds for payment of the principal of, redemption premium, if any, and interest on the Bonds pursuant to the Bond Resolution; (e) The Issuer is not in breach of or default in any material respect under any applicable constitutional provision, law or administrative regulation of the State or the United States or any applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the Issuer is a party or to which the Issuer is or any of its property or assets are otherwise subject, and no event has occurred and is continuing which constitutes or with the passage of time or the giving of notice, or both, would constitute a default or event of default by the Issuer under any of the foregoing; and when executed by the respective parties hereto and thereto, the Issuer reasonably expects as of the date hereof that execution and delivery of the Bonds, the Issuer Documents and the adoption of the Bond Resolution and compliance with the provisions on the Issuer's part contained therein, will not conflict with or constitute a breach of or default under any constitutional provision, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the Issuer is a party or to which the Issuer is or to which any of its property or assets are otherwise subject nor will any such execution, delivery, adoption or compliance result in the creation or imposition of any lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the property or assets of the Issuer to be pledged to secure the Bonds or under the terms of any such law, regulation or instrument, except as provided by the Bonds and the Bond Resolution; (f) In the past five years, except as expressly disclosed in the Official Statement, the Issuer has not failed to comply in any material respect with any prior continuing disclosure obligation arising out of the Rule; (g) All authorizations, approvals, licenses, permits, consents and orders of any governmental authority, legislative body, board, agency or commission having jurisdiction of the matter which are required for the due authorization of, which would constitute a condition precedent to, or the absence of which would materially adversely affect the due performance by the Issuer of its obligations under the Issuer Documents, and the Bonds have been duly obtained, except for such approvals, consents and orders that may not be obtained until after the date of this Agreement or as may be required under the Blue Sky n or securities laws of any jurisdiction in connection with the offering and sale of the Bonds; (h) The statements and information contained in the Official Statement (other than the information concerning the Depository Trust Company ("DTC") or its book -entry system of registration), are, as of the date hereof, true, correct and complete in all material respects; and, with respect to such statements and information, the Official Statement does not contain any untrue statement of a material fact and does not omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading in any material respect; (i) Except as otherwise disclosed in the Official Statement, as of the date of this Agreement, there is no legislation, action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, government agency, public board or body, pending or, to the best knowledge of the Issuer after due inquiry, threatened against the Issuer, affecting the existence of the Issuer or the titles of its officers to their respective offices, or affecting or seeking to prohibit, restrain or enjoin the sale, issuance or delivery of the Bonds or the collection of any Non -Ad Valorem Revenues or financing/reimbursement of the Project pursuant to the Bond Resolution or in any way contesting or affecting the validity or enforceability of the Bonds, the Issuer Documents, or contesting in any way the completeness or accuracy of the Preliminary Official Statement or the Official Statement or any supplement or amendment thereto, or contesting the powers of the Issuer or any authority financing/reimbursement of the Project, the issuance of the Bonds, the adoption n of the Bond Resolution or the execution and delivery of the Issuer Documents, nor, to the best knowledge of the Issuer, is there any basis therefor, wherein an unfavorable decision, 0 ruling or finding would materially adversely affect the validity or enforceability of the Bonds, the Issuer Documents, or the excludability from gross income of interest on the Bonds for federal income tax purposes; 0) As of the date thereof, the Preliminary Official Statement did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (k) At the time of the Issuer's acceptance hereof and (unless the Official Statement is amended or supplemented pursuant to paragraph (d) of Section 4 of this Agreement) at all times subsequent thereto during the period up to and including the date of Closing, the Official Statement does not and will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (1) If the Official Statement is supplemented or amended pursuant to paragraph (d) of Section 4 of this Agreement, at the time of each supplement or amendment thereto and (unless subsequently again supplemented or amended pursuant to such paragraph) at all times subsequent thereto during the period up to and including the date of Closing the n Official Statement as so supplemented or amended will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which made, not misleading; (m) The Issuer will apply, or cause to be applied, the proceeds from the sale of the Bonds as described in the Official Statement and as provided in and subject to all of the terms and provisions of the Bond Resolution and not to take or omit to take any action which action or omission will adversely affect the exclusion from gross income for federal income tax purposes of the interest on the Bonds; (n) The Issuer will furnish such information and execute such instruments and take such action in cooperation with the Underwriters as the Representative may reasonably request (i) to (A) qualify the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of such states and other jurisdictions in the United States as the Representative may designate and (B) determine the eligibility of the Bonds for investment under the laws of such states and other jurisdictions and (ii) to continue such qualifications in effect so long as required for the distribution of the Bonds (provided, however, that the Issuer will not be required to qualify as a foreign corporation or to file any general or special consents to service of process under the laws of any jurisdiction, comply with any other requirements reasonably deemed by it to be unduly burdensome or incur any fees in connection with its compliance with this subsection) and will advise the Representative immediately of receipt by the Issuer of any notification with respect to the 10 n suspension of the qualification of the Bonds for sale in any jurisdiction or the initiation or threat of any proceeding for that purpose; (o) The financial statements of the Issuer and other financial information regarding the Issuer in the Preliminary Official Statement and the Official Statement, including, but not limited to, the Non -Ad Valorem Revenues, fairly present the financial position and results of the Issuer as of the dates and for the periods therein set forth. The Issuer is not a party to any litigation or other proceeding pending or, to its knowledge, threatened which, if decided adversely to the Issuer, would have a materially adverse effect on the financial condition of the Issuer; (p) Prior to the Closing, the Issuer will not offer or issue any bonds, notes or other obligations for borrowed money or incur any material liabilities, direct or contingent, payable from or secured by any of the Non -Ad Valorem Revenues without the prior approval of the Representative; (q) Any certificate, signed by any official of the Issuer authorized to do so in connection with the transactions contemplated by this Agreement, shall be deemed a representation and warranty by the Issuer to the Underwriters as to the statements made therein; (r) Except as expressly disclosed in the Official Statement, the Issuer is not and has not been in default on any bond issued since December 31, 1975 that would be considered material by a reasonable investor. The Issuer has not undertaken an independent review or investigation of securities for which it has served as conduit issuer. The Issuer does not believe that any information about any default on such securities is appropriate and would be considered material by a reasonable investor in the Bonds because the Issuer would not have been obligated to pay the debt service on any such securities except from payments made to it by the private companies on whose behalf such securities were issued and no funds of the Issuer would have been pledged or used to pay such securities or the interest thereon; (s) The Issuer 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. 6. Closing. (a) At [ 1:00] p.m. Eastern Daylight Time, on July_, 2018, or at such other time and date as shall have been mutually agreed upon by the Issuer and the Representative (the "Closing"), the Issuer will, subj ectto the terms and conditions hereof, deliver the Bonds to the Underwriters duly executed and authenticated, together with the other documents hereinafter mentioned, and the Underwriters will, subject to the terms and conditions hereof, accept such delivery andpay the purchase price ofthe Bonds as set forth in Section 1 ofthis Agreement by a certified or bank cashier's check or checks or wire transferpayable in immediately available funds to the order ofthe Issuer. Payment forthe 11 Bonds as aforesaid shall be made at the offices of Issuer, or such other place as shall have been mutually agreed upon by the Issuer and the Representative. (b) Delivery of the Bonds shall be made to The Depository Trust Company, New York, New York ("DTC") through its FAST system of registration. The Bonds shall be delivered in definitive fully registered form, bearing CUSIP numbers without coupons, with one Bond for each maturity of the Bonds, registered in the name of Cede & Co., all as provided in the Bond Resolution, and shall be made available to the Representative at least one business day before the Closing for purposes of inspection. 7. Closing Conditions. The Underwriters have entered into this Agreement in reliance upon the representations, warranties and agreements ofthe Issuer contained herein, and in reliance upon the representations, warranties and agreements to be contained in the documents and instruments to be delivered at the Closing and upon the perfonnance by the Issuer of its obligations hereunder, both as of the date hereof and as of the date of the Closing. Accordingly, the Underwriters' obligations under this Agreement to purchase, to accept delivery of and to pay for the Bonds shall be conditioned upon the performance by the Issuer of its obligations to be performed hereunder and under such documents and instruments at or prior to the Closing, and shall also be subject to the following additional conditions, including the delivery by the Issuer of such documents as are enumerated herein, in form and substance reasonably satisfactory to the Representative: n (a) The representations and warranties of the Issuer contained herein shall be true, complete and correct on the date hereof and on and as of the date of the Closing, as if made on the date of the Closing; (b) The Issuer shall have performed and compiied with ail agreements and conditions required by this Agreement and the Issuer Documents to be performed or complied with by it prior to or at the Closing; (c) At the time of the Closing, (i) the Issuer Documents and the Bonds shall be in full force and effect in the form heretofore approved by the Representative and shall not have been amended, modified or supplemented, and the Official Statement shall not have been supplemented or amended, except in any such case as may have been agreed to by the Representative; and (ii) all actions of the Issuer required to be taken by the Issuer shall be perfonned in order for Bond Counsel and other counsel to deliver their respective opinions referred to hereafter; (d) At or prior to the Closing, the Bond Resolution shall have been duly executed and delivered by the Issuer and the Issuer shall have duly executed and delivered and the Registrar shall have duly authenticated the Bonds; (e) At the time of the Closing, there shall not have occurred any change or any development involving a prospective change in the condition, financial or otherwise, or in 12 n the revenues or operations of the Issuer, from that set forth in the Official Statement that in the judgment of the Representative, is material and adverse and that makes it, in the judgment of the Representative, impracticable to market the Bonds on the terms and in the manner contemplated in the Official Statement; (f) The Issuer shall not have failed to pay principal or interest when due on any of its outstanding obligations for borrowed money for which it is obligated to pay from revenues of the Issuer; (g) All steps to be taken and all instruments and other documents to be executed, and all other legal matters in connection with the transactions contemplated by this Agreement shall be reasonably satisfactory in legal form and effect to the Representative; (h) At or prior to the Closing, the Underwriters shall have received copies of each of the following documents: (1) The Official Statement, and each supplement or amendment thereto, if any, executed on behalf of the Issuer by its Mayor and City Manager, or such other official as may have been agreed to by the Representative, and the reports and audits referred to or appearing in the Official Statement; n (2) A certified copy of the Bond Resolution with such supplements or amendments as may have been agreed to by the Representative; (3) Fully executed counterparts of the Issuer Documents; (4) The Undertaking which satisfies the requirements of section (b)(5)(i) of the Rule; (5) A final approving opinion of Bryant Miller Olive P.A., Bond Counsel to the Issuer, with respect to the Bonds, dated the date of closing, in substantially the form attached to the Official Statement as Appendix D; (6) 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 7(h)(5) hereof may be relied upon by the Underwriters to the same extent as if such opinion were addressed to the Underwriters; (7) A supplemental opinion of Bryant Miller Olive P.A., addressed to the Underwriters, dated the date of Closing, substantially to the effect that the statements contained in the Official Statement under the sections "THE PROJECT," "DESCRIPTION OF THE SERIES 2018 BONDS" (other than the infonnation under the subheading "Book -Entry Only System"), "SECURITY AND SOURCES 11N� OF PAYMENT OF THE SERIES 2018 BONDS," purport to summarize certain provisions of the Bond Resolution and the Bonds, such statements are accurate 13 summaries of the provisions purported to be summarized and the information contained in the Official Statement under the section captioned "TAX MATTERS" is accurate. (8) An opinion of Akerman LLP, as Disclosure Counsel, dated the date of the Closing and addressed to the Issuer and the Underwriters, to the effect that: (i) the Bonds are exempt securities under the 1933 Act and the Trust Indenture Act and it is not necessary, in connection with the offering and sale of the Bonds, to register the Bonds under the 1933 Act and the Bond Resolution need not be qualified under the Trust Indenture Act; (ii) based upon their participation in the preparation of the Preliminary Official Statement and the Official Statement as Disclosure Counsel for the Issuer and their discussions with representatives of the Issuer and others at which the Preliminary Official Statement and the Official Statement were discussed, but without having undertaken to determine independently the accuracy, completeness or fairness of the statements contained in the Preliminary Official Statement and the Official Statement, such counsel has no reason to believe that the Preliminary Official Statement or the Official Statement contains any untrue statement of a material fact or n omits to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading (except for any financial, forecast, technical and statistical statements and data included in the Official Statement and the infonnation regarding DTC and its book -entry system, in each case as to which no view need be expressed); (iii) the Undertaking satisfies the requirements under the Rule; (9) An opinion of Goren, Cherof, Doody & Ezrol, P.A., Fort Lauderdale, Florida, attorney to the Issuer (the "City Attorney"), addressed to the Issuer, Bond Counsel and the Underwriters and dated the date of the Closing substantially in the form attached hereto as Exhibit B; (10) An opinion of Nabors, Giblin & Nickerson, P.A., as counsel to the Underwriters, dated the date of Closing, addressed to the Underwriters and in form and substance reasonably acceptable to the Underwriters; (11) A certificate, dated the date of Closing, signed by the Mayor, the City Manager, the Director of Financial Services and the City Clerk of the Issuer, or such other officials satisfactory to the Representative, in substantially the form attached hereto as Exhibit C; /�Nl 14 (12) A certificate of the Issuer in form and substance satisfactory to Bond Counsel and counsel to the Underwriters (i) setting forth the facts, estimates and circumstances in existence on the date of the Closing, which establish that it is not expected that the proceeds of the Bonds will be used in a manner that would cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code, and any applicable regulations (whether final, temporary or proposed), issued pursuant to the Code, and (ii) certifying that to the best of the knowledge and belief of the Issuer there are no other facts, estimates or circumstances that would materially change the conclusions, representations and expectations contained in such certificate; (13) A certificate of an authorized representative of U.S. Bank National Association (the "Bank"), as Registrar and Paying Agent to the effect that (i) the Bank is a national banking association duly organized, validly existing and in good standing under the law of the United States of America and is duly authorized to exercise trust powers in the State of Florida, (ii) 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 Bond Resolution and the Registrar and Paying Agent Agreement, dated the date of delivery of the Bonds, between the Issuer and the Bank (the "Paying Agent Agreement"), (iii) the performance by the Bank of its functions under the Bond Resolution and the Paying Agent Agreement 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 parry 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 Bond Resolution and the Paying Agent Agreement, (iv) the Paying Agent Agreement constitutes a valid and binding obligation of the Bank in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights generally and subject, as to enforceability, to general principles of equity and (v) to the best of such authorized representative's knowledge, there is no action, suit, proceeding or investigation at 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 Bond Resolution and the Paying Agent Agreement; (14) A signed copy of the letter ofrepresentations from the Issuer to DTC; 15 (15) A certificate of the Director of Financial Services deeming the Preliminary Official Statement "final" as of its date for the purposes of Rule 15c2- 12; (16) A letter of Moody's that the Bonds have an underlying rating of "Aa3," a letter of S&P that the Bonds have an underlying rating of "AA," and a letter of Fitch Ratings that the Bonds have an underlying rating of "AA-," and that all such ratings are in effect as of the date of Closing; (17) Such additional legal opinions, certificates, instruments and other documents as the Representative or counsel to 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 Issuer'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 Issuer on or prior to the date of the Closing of all the respective agreements then to be performed and conditions then to be satisfied by the Issuer. All of the opinions, letters, certificates, instruments and other documents mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with the provisions hereof if, but only if, they are in form and substance satisfactory to the n Underwriters. If the Issuer shall be unable to satisfy the conditions to the obligations of the Underwriters to purchase, to accept delivery of and to pay for the Bonds contained in this Agreement, or if the obligations of the Underwriters to purchase, to accept delivery of and to pay for the Bonds shall be terminated for any reason permitted by this Agreement, this Agreement shall terminate and neither the Underwriters nor the Issuer shall be under any further obligation hereunder, except that the respective obligations of the Issuer and the Underwriters set forth in Section 1 (with respect to the return of the Good Faith Deposit only), 5 and 9 hereof shall continue in full force and effect. 8. Termination. The Underwriters shall have the right to cancel their obligation to purchase the Bonds if, between the date of this Agreement and the Closing, the market price or marketability of the Bonds shall be materially adversely affected, in the sole and reasonable judgment of the Representative, by the occurrence of any of the following: (a) Legislation shall be enacted by or introduced in the Congress of the United States or recommended to the Congress for passage by the President of the United States, or the Treasury Department of the United States or the Internal Revenue Service or any member of the Congress or the Florida Legislature or favorably reported for passage to either House of the Congress by any committee of such House to which such legislation has been referred for consideration, a decision by a court of the United States or of the State or the United States Tax Court shall be rendered, or an order, ruling, regulation (final, 16 temporary or proposed), press release, statement or other form of notice by or on behalf of the Treasury Department of the United States, the Internal Revenue Service or other governmental agency shall be made or proposed, the effect of any or all of which would be to impose, directly or indirectly, federal income taxation upon interest received on obligations of the general character of the Bonds of the interest on the Bonds as described in the Official Statement, or other action or events shall have transpired which may have the purpose or effect, directly or indirectly, of changing the federal income tax consequences of any of the transactions contemplated herein; (b) Legislation introduced in or enacted (or resolution passed) by the Congress or an order, decree, or injunction issued by any court of competent jurisdiction, or an order, ruling, regulation (final, temporary, or proposed), press release or other form of notice issued or made by or on behalf of the Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter, to the effect that obligations of the general character of the Bonds, including any or all underlying arrangements, are not exempt from registration under or other requirements of the 1933 Act, or that the Bond Resolution is not exempt from qualification under or other requirements of the Trust Indenture Act, or that the issuance, offering, or sale of obligations of the general character of the Bonds, including any or all underlying arrangements, as contemplated hereby or by the Official Statement or otherwise, is or would be in violation of the federal securities law n as amended and then in effect; (c) Any state Blue Sky or securities commission or other governmental agency or body shall have withheld registration, exemption or clearance of the offering of the Bonds as described herein, or issued a stop order or similar ruling relating thereto; (d) A general suspension of trading in securities on the New York Stock Exchange or other national securities exchange, the establishment of minimum prices on any such exchange, the establishment of material restrictions (not in force as of the date hereof) upon trading securities generally by any governmental authority or any national securities exchange, a general banking moratorium declared by federal, State of New York, or State officials authorized to do so; (e) The New York Stock Exchange or other national securities exchange or any governmental authority, shall impose, as to the Bonds or as to obligations of the general character of the Bonds, any material restrictions not now in force, or increase materially those now in force, with respect to the extension of credit by, or the charge to the net capital requirements of, Underwriters; (f) Any amendment to the federal or state Constitution or action by any federal or state court, legislative body, regulatory body, or other authority materially adversely affecting the tax status of the Issuer, its property, income securities or interest thereon; 17 (g) Any event occurring, or information becoming known which, in the reasonable judgment of the Representative, makes untrue in any material respect any statement or information contained in the Official Statement, or has the effect that the Official Statement contains any untrue statement of material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, notmisleading; (h) There shall have occurred any materially adverse change in the affairs or financial condition of the Issuer; (i) Between the date hereof and the Closing, the Issuer has, without the prior written consent of the Representative, 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 Issuer or of the Non -Ad Valorem Revenues; 0) The United States shall have become engaged in hostilities which have resulted in a declaration of war or a national emergency or there shall have occurred any other outbreak or escalation of hostilities (it being agreed by the parties hereto that no such hostilities exist on the date hereof); (k) There shall have occurred any national or international calamity or crisis in n the financial markets or otherwise of the United States or elsewhere (it being agreed by the parties hereto that no such hostilities exist on the date hereof); (1) Any fact or event shall exist or have existed that, in the reasonable judgment of the Representative, requires or has required an amendment of or suppiement to the Official Statement which, in the reasonable opinion of the Representative, would materially adversely affect the market price or marketability of the Bonds; (m) Prior to Closing, Moody's, S&P, or Fitch Ratings shall inform the Issuer or the Underwriter that the Bonds will not receive underlying ratings of at least "Aa3," "AA" and "AA-," respectively; (n) There shall have occurred or any notice shall have been given of any intended review, downgrading, suspension, withdrawal, or negative change in credit watch status by any national rating service to any of the Issuer's obligations; (o) The purchase of and payment for the Bonds by the Underwriters, or the resale of the Bonds by the Underwriters, on the terms and conditions herein provided shall be prohibited by any applicable law, governmental authority, board, agency or commission. Notice of termination pursuant to this Section 8 shall be given by the Representative to the Issuer in writing, or by telephone confinned in writing. The perfonnance by the 18 n Issuer of any and all conditions contained in this Agreement for the benefit of the Underwriters may be waived by the Representative. 9. Expenses. (a) The Underwriters shall be under no obligation to pay, and the Issuer shall pay all expenses incident to the performance of the Issuer's obligations hereunder, including, but not limited to (i) the cost of preparation and printing of the Bonds, Preliminary Official Statement, Official Statement and any amendment or supplement thereto, (ii) the fees and disbursements of Bond Counsel, City Attorney and Disclosure Counsel, if any; (iii) the fees and disbursements of the Financial Advisor to the Issuer; (iv) the fees and disbursements of any Paying Agent or engineers, accountants, and other Date:ts, consultants or advisers retained by the Issuer, if any; and (v) all fees, premiums and expenses in connection with obtaining bond ratings. The Issuer shall also pay for any expenses (included in the expense component of the Underwriters' discount) incurred by the Underwriters which are incidental to implementing this Bond Purchase Agreement and the issuance of the Bonds, including, but not limited to, meals, transportation and lodging, if any, and any other miscellaneous closing costs, subject to approval of the Issuer. (b) Except as provided for above, the Unde 1 writers shall pay (i) the cost of preparation and printing of this Agreement, any Blue Sky Surveys and/or Legal Investment Memoranda; (ii) all advertising expenses in connection with the public offering of the r� Bonds; and (iii) all other expenses incurred by them in connection with the public offering of the Bonds, including the fees and disbursements of counsel retained by the Underwriters and costs related to the preparation of this Agreement. 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. (c) If this Agreement shall be terminated by the Underwriters because of any failure or refusal on the part of the Issuer to comply with the terms or to fulfill any of the conditions of this Agreement, or if for any reason the Issuer shall be unable to perform its obligations under this Agreement, the Issuer will reimburse the Underwriters for all out- of - pocket expenses (including the fees and disbursements of counsel to the Underwriters) reasonably incurred by the Underwriters in connection with this Agreement or the offering contemplated hereunder. (d) The Issuer acknowledges that it has had an opportunity, in consultation with such advisors as it may deem appropriate, if any, to evaluate and consider the fees and expenses being incurred as part of the issuance of the Bonds. I0. Notices. Any notice or other communication to be given to the Issuer under this Agreement may be given by delivering the same in writing to City of Tamarac, Florida, 7525 NW 88th Avenue, Tamarac, Florida 33321, to the attention of Director ofFinancial Services, and any notice or other communication to be given to the Underwriters under this Agreement may be given by delivering the same in writing to Stifel, Nicolaus & Company, 19 Incorporated, 111 N. Magnolia Ave., Suite 1175, Orlando, FL 32801, Attention: Mr. Matthew Sansbury. 11. Parties in Interest. This Agreement as heretofore specified shall constitute the entire agreement between us and is made solely for the benefit of the Issuer and the Underwriters (including successors or assigns of the Underwriters) and no other person shall acquire or have any right hereunder or by virtue hereof. This Agreement may not be assigned by the Issuer. All of the Issuer's representations, warranties and agreements contained in this Agreement shall remain operative and in full force and effect, regardless of (i) any investigations made by or on behalf of any of the Underwriters; (ii) delivery of and payment for the Bonds pursuant to this Agreement; and (iii) any termination of this Agreement. 12. Effectiveness. This Agreement shall become effective upon the acceptance hereof by the Issuer and shall be valid and enforceable at the time of such acceptance. 13. Choice of Law. This Agreement shall be governed by and construed in accordance with the law of the State of Florida. 14. Severability. If any provision of this Agreement shall be held or deemed to be or shall, in fact, be invalid, inoperative or unenforceable as applied in any particular e* N1 case in any jurisdiction or jurisdictions, or in all jurisdictions because it conflicts with any provisions of any Constitution, statute, rule of public policy, or any other reason, such circumstances shall not have the effect of rendering the provision in question invalid, inoperative or unenforceable in any other case or circumstance, or of rendering any other provision or provisions of this Agreement invalid, inoperative or unenforceable to any extent whatever. 15. Business Day. For purposes of this Agreement, "business day" means any day on which the New York Stock Exchange is open for trading. 16. Section Headings. Section headings have been inserted in this Agreement as a matter of convenience of reference only, and it is agreed that such section headings are not a part of this Agreement and will not be used in the interpretation of any provisions of this Agreement. 17. Counterparts. This Agreement may be executed in several counterparts each of which shall be regarded as an original (with the same effect as if the signatures thereto and hereto were upon the same document) and all of which shall constitute one and the same document. [Signature Page to this Agreement immediately follows this page] 20 [SIGNATURE PAGE TO BOND PURCHASE AGREEMENT FOR THE PURCHASE OF THE CITY OF TAMARAC, FLORIDA CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 2018] If you agree with the foregoing, please sign the Agreement and return it to the Underwriters. This Agreement shall become a binding agreement between you and the Underwriters when at least the counterpart of this letter shall have been signed by or on behalf of each of the parties hereto. ACCEPTED at _, 2018. Attested: Pat Teufel, City Clerk Approved as to Form: Samuel S. Goren, C' Attorney Respectfully submitted, STIFEL, NICOLAUS & COMPANY, INCORPORATED Matthew Sansbury, Managing Director Date: ACCEPTANCE [a.m./p.m.] Eastern Daylight Time this CITY OF TAMARAC, FLORIDA Harry Dressler, Mayor Michael C. Cerriech, City Manager day of n Schedule I CITY OF TAMARAC, FLORIDA Capital Improvement Revenue Bonds, Series 2018 MATURITIES, AMOUNTS, INTEREST RATES, PRICES AND YIELDS Maturity Interest f0ctober 11 Amount $fig *Yield calculated to first optional call date of October 1, 20_ Optional Redemption The Bonds maturing on or before October 1, 20_ are not subject to redemption prior to their stated dates of maturity. The Bonds maturing on October 1, 20_ and thereafter shall be subjectto redemption prior to their stated dates ofmaturity atthe option of the Issuer, in whole or in part, on October 1, 20, or any date thereafter, in such order as shall be determined by the City and by lot within a maturity, at the redemption price of 100% of the principal amount of the Bonds to be redeemed, plus accrued interest to the redemption date. Schedule I - 1 /� Schedule II DISCLOSURE STATEMENT AND TRUTH -IN -BONDING STATEMENT ,2018 Mayor and City Commission of the City of Tamarac, Florida Tamarac, Florida Re: $ City of Tamarac, Florida Capital Improvement Revenue Bonds, Series 2018 Dear Mayor and Commission Members: In connection with the proposed issuance by the City of Tamarac, Florida (the "Issuer") of $ in aggregate principal amount of its City of Tamarac, Florida Capital Improvement Revenue Bonds, Series 2018 (the "Bonds"), Stifel, Nicolaus & Company, Incorporated, on behalf of itself and RBC Capital Markets, LLC and UBS Financial Services Inc. (collectively, the "Underwriters") is underwriting a public offering of the Bonds. The purpose of the following six paragraphs of this letter is to furnish, pursuant to PO,* t� ''u ST .rd-. i'Prc in i f r tit rn - respect of the arrangements contemplated for the purchase and sale of the 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 Bonds are set forth in Attachment 1 attached hereto. (b) There are no "finders," as defined in Section 218.386(1)(a), Florida Statutes, as amended, connected with the sale and purchase of the Bonds. (c) The underwriting spread, the difference between the price at which the Bonds will be initially offered to the public by the Underwriters and the price to be paid to the Issuer for the Bonds will be$ per $1,000 ofBonds issued. (d) As part of the estimated underwriting spread set forth in paragraph (c) above, the Underwriters will charge a management fee of$ per $1,000 of Bonds 14"111% issued. Schedule II - I (e) No other fee, bonus or other compensation is estimated to be paid by the Underwriters in connection with the issuance of the Bonds to any person not regularly employed or retained by the Underwriters (including any "finder" as defined in Section 218.3 86(1)(a), 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: Stifel, Nicolaus & Company, Incorporated 111 N. Magnolia Ave., Suite 1175 Orlando, FL 32801 RBC Capital Markets, LLC 100 Second Avenue South, Suite 800 St. Petersburg, FL 33701 UBS Financial Services Inc. I I I N Orange Ave, Suite 1300 Orlando, FL 32801 The purpose of the following two paragraphs is to furnish, pursuant to the provisions n of Sections 218.385(2) and (3), Florida Statutes, as amended, the truth -in -bonding statement required thereby, as follows: (a) The Issuer is proposing to issue $ of the Bonds for the principal purposes of (1) financing and reimbursing various capital improvements to the Issuer's sound walls, fire stations and parks and recreation, and (2) paying certain costs and expenses relating to the issuance of the Bonds. This obligation is expected to be repaid over a period of approximately _ _ years. At an all -in true interest cost of approximately_._%, total interest paid over the life of the Bonds will be$ (b) The source of repayment or security of the Bonds is the Pledged Funds, which Pledged Funds include legally available Non -Ad Valorem Revenues budgeted and appropriated in accordance with Resolution No. R- of the Issuer adopted on , 2018, as amended and supplemented from time to time. Authorizing this debt will result in an average of$ ._ (average annual debt service) of such Pledged Funds not being available to finance other services of the Issuer each year for approximately_._ years. Schedule II - 2 The foregoing is provided for information purposes only and shall not affect or control the actual terms and conditions of the Bonds. Vcry truly yours, STIFEL, NICOLAUS & COMPANY, INCORPORATED, as Representative Matthew Sansbury, Managing Director Schedule II - 3 Underwriters' Estimated Expenses Underwriters' Counsel Fees and Expenses Dalcomp Day Loan CUSIP DTC Communications, Miscellaneous Total E ATTACHMENT 1 Schedule II - Attachment 1 - 1 EXHIBIT A FORM OF ISSUE PRICE CERTIFICATE CITY OF TAMARAC, FLORIDA CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 2018 The undersigned, on behalf of Stifel, Nicolaus and Company Incorporated (the "Representative"), on behalf of itself and RBC Capital Markets, LLC and UBS Financial Services Inc. (together, the "Underwriting Group"), hereby certifies as set forth below with respect to the sale and issuance of the above -captioned obligations (the 'Bonds"). Select appropriate provisions below: I. [Alternative P - All Maturities Use General Rule: Sale of the Bonds. As of the date of this certificate, for each Maturity of the Bonds, the first price at which at least 10% of such Maturity of the Bonds was sold to the Public is the respective price listed in Schedule A -I.] [Alternative 22 -Select Maturities Use General Rule: Sale of the General Rule Maturities. As of the date of this certificate, for each Maturity of the General Rule Maturities, the first price at which at least I0% of such Maturity of the Bonds was sold to the Public is the respective price listed in Schedule A -I.] 2. Initial Offering Price of the [Bonds] [Hold -the -Offering Price Maturities]. (a) [Alternative 13 -All Maturities Use Hold-the-O,[ering-Price Rule • The Underwriting Group offered the Bonds to the Public for purchase at the respective initial offering prices listed in Schedule A -I (the "Initial Offering Prices") on or before the Saie Date. A copy of the pricing wire or equivalent communication for the Bonds is attached to this certificate as Schedule A -II.] [Alternative 24 - Select Maturities Use Hold-the-Ocering-Price Rule: The Underwriting Group offered the Hold -the -Offering -Price Maturities to the Public for purchase at the respective initial offering prices listed in Schedule A (the "Initial Offering Prices") on or before the Sale Date. A copy of the pricing wire or equivalent communication for the Bonds is attached to this certificate as Schedule A -II.] (b) [Alternative 1-All Maturities use Hold -the -Offering -Price Rule: As set forth in the Bond Purchase Agreement, dated , 2018 among the Issuer and the i If Alternative I is used, delete the remainder of paragraph I and all of paragraph 2 and renumber paragraphs accordingly. z If Alternative 2 is used, delete Alternative I of paragraph 1 and use each Alternative 2 in paragraphs 2(a) and (b). s If Alternative I is used, delete all of paragraph I and renumber paragraphs accordingly. 4 Alternative 2(a) of paragraph 2 should be used in conjunction with Alternative 2 in paragraphs 1 and 2(b). Underwriting Group (the 'Bond Purchase Agreement"), the members of the Underwriting Group have agreed in writing that, (i) for each Maturity of the Bonds, they would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for such Maturity (the "hold -the -offering -price rule"), and (ii) any selling group agreement shall contain the agreement of each dealer who is a member of the selling group, and any retail distribution agreement shall contain the agreement of each broker -dealer who is a party to the retail distribution agreement, to comply with the hold -the -offering -price rule. Pursuant to such agreement, no Underwriter (as defined below) has offered or sold any Maturity of the Bonds at a price that is higher than the respective Initial Offering Price for that Maturity of the Bonds during the Holding Period. [Alternative 2 - Select Maturities Use Hold-the- Otfering,-Price Rule: As set forth in the Bond Purchase Agreement, dated , 2018 among the Issuer and the Underwriting Group (the 'Bond Purchase Agreement"), the members of the Underwriting Group have agreed in writing that, (i) for each Maturity of the Hold -the -Offering -Price Maturities they would neither offer nor sell any of the Bonds of such Maturity to anM person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for such Maturity (the "hold -the -offering -price rule") and(ii) @ny selling group ajueement shall contain the agreement of each dealer who is a member of the selling group, and any retail distribution agreement shall contain the agreement of each broker -dealer who is a party to the retail distribution agreement, to comply with the hold -the -offering -price rule. Pursuant to such agreement, no Underwriter (as defined below) has offered or sold any Maturity of the Hold -the -Offering -Price Maturities at a price that is higher than the respective Initial Offering Price for that Maturity of the Bonds during the Holding Period. 3. Defined Terms. [(a) General Rule lvfaturities means those Mar..irities of the Bonds listed in Schedule A hereto as the "General Rule Maturities."] [(b) Hold -the -Offering -Price Maturities means those Maturities of the Bonds listed in Schedule A hereto as the "Hold -the -Offering -Price Maturities."] [(c) Holding Period means, with respect to a Hold -the -Offering -Price Maturity, the period starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the Sale Date , 2018), or (ii) the date on which the the Underwriters have sold at least 10% of such Hold -the -Offering -Price Maturity to the Public at prices that are no higher than the Initial Offering Price for such Hold -the -Offering -Price Maturity.] (d) Issuer means the City of Tamarac, Florida. (e) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate maturities. WN n (f) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term "related parry" for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (g) Sale Date means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is , 2018. (h) Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents the Representative's interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in its Tax Ce 1 iificate as to Arbitrage and the Provisions of Sections 141-150 of the Internal Revenue Code of 1985, as Amended, dated , 2018, and with respect to compliance with the federal income tax rules affecting the Bonds, and by Bryant Miller Olive P.A., Bond Counsel, in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of Internal Revenue Service Form 8038-G, and other federal income tax advice it may give to the Issuer from time to time relating to the Bonds. Dated: ,2018 STIFEL, NICOLAUS & COMPANY, INCORPORATED, as Representative $ y - - - - - - - - - - - - - - - - - Matthew Sansbury, Managing Director Ley- ---------------- Alan Murphy, Managing Director US N n SCHEDULE A -I SALE PRICES OF THE GENERAL RULE MATURITIES AND INITIAL OFFERING PRICES OF THE HOLD -THE -OFFERING -PRICE MATURITIES (Attached) Schedule A -I SCHEDULE A -II PRICING WIRE OR EQUIVALENT COMMUNICATION (Attached) Schedule A -II EXHIBITB n FORM OF CITY ATTORNEY OPINION ,2018 City Commission of the City of Tamarac Bryant Miller & Olive P.A. Tamarac, Florida Orlando, Florida Stifel, Nicolaus & Company, Incorporated RBC Capital Markets, LLC Orlando, Florida St. Petersburg, Florida UBS Financial Services Inc. Orlando, Florida City of Tamarac, Florida Capital Improvement Revenue Bonds, Series 2018 Dear Ladies and Gentlemen: We have acted as counsel to the City of Tamarac, Florida (the "City or Issuer"), in connection with the authorization, sale and delivery of the above -referenced Bonds (the "Bonds"), dated , 2018, pursuant to the Constitution and laws of the State of Florida, Chapter 166, Part I1, Florida Statutes, the municipal charter of the Issuer, and other applicable provisions of law, and Resolution No. R- duly adopted by the City Commission of the City (the "City Commission") on , 2018 (the 'Bond Resolution"). Except as otherwise noted, capitalized terms used herein shall have the meaning ascribed to them in the Bond Resolution. In our opinion: 1. The Issuer is a municipal corporation of the State of Florida (the "State") duly created, organized and existing under the laws of the State, specifically the Constitution of the State, Chapter 166, Florida Statutes and the municipal charter of the Issuer, as amended and supplemented (the "Act"), and has full legal right, power and authority under the Act and the Bond Resolution (A) to adopt the Bond Resolution and to enter into, execute and deliver the Purchase Contract and the Disclosure Dissemination Agent Agreement (the Bond Resolution, the Purchase Contract and the Disclosure Dissemination Agent Agreement are collectively referred to as the "Issuer Documents") and all documents M. A required thereunder to be executed and delivered by the Issuer, (B) to sell, issue and deliver the Bonds to the Underwriters as provided in the Purchase Contract, and (C) to carry out and consummate the transactions contemplated by the Issuer Documents and the Official Statement with respect to the Bonds dated , 2018 (the "Official Statement"), and the Issuer has complied, and as of the date hereof is in compliance in all respects, with the terms of the Act and the Issuer Documents as they pertain to such transactions; 2. By all necessary official action of the Issuer prior to or concurrently with the acceptance of the Purchase Contract, the Issuer has duly authorized all necessary action to be taken by it for (A) the adoption of the Bond Resolution and the issuance and sale of the Bonds, (B) the approval, execution and delivery of, and the performance by the Issuer of the obligations on its part, contained in the Bonds, the Issuer Documents, and (C) the consummation by it of all other transactions contemplated by the Official Statement, the Issuer Documents and any and all such other agreements and documents as may be required to be executed, delivered and/or received by the Issuer in order to carry out, give effect to, and consummate the transactions contemplated in the Purchase Contract and in the Official Statement; 3. The Bond Resolution was duly and validly adopted by the Issuer and is in full force and effect; the Bond Resolution and all other proceedings pertinent to the validity and enforceability of the Bonds and the collection, levying and receipt of the Pledged Funds have been duly and validly adopted or undertaken in compliance with all applicable procedural requirements of the Issuer and in compliance with the Constitution and laws of the State, including the Act and the Bond Resolution remains in full force and effect as of the date hereof and no event has occurred that constitutes or would, with the passage of time, give rise to a breach of the covenants contained therein or a default or inability of the City to perfonn thereunder; 4. The Issuer Documents have been duly authorized, executed and delivered by the Issuer, and constitute legal, valid and binding obligations of the Issuer enforceable against the Issuer in accordance with their respective terms, except to the extent limited by bankrnptcy, insolvency, reorganization, moratorium or other similar laws and equitable principles of general application relating to or affecting the enforcement of creditors' rights; and the Bonds, when issued, delivered and paid for, in accordance with the Bond Resolution and the Purchase Contract, will constitute legal, valid and binding obligations of the Issuer entitled to the benefits of the Bond Resolution and enforceable in accordance with their terns, subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws and principles of equity relating to or affecting the enforcement of creditors' rights; upon the issuance, authentication and delivery of the Bonds as aforesaid, the Bond Resolution will provide, for the benefit of the holders, from time to time, of the Bonds, the legally valid and binding pledge of and lien it purports to create as set forth in the Bond Resolution; IM 5. The distribution of the Preliminary Official Statement with respect to the Bonds dated , 2018 (the 'Preliminary Official Statement") and the Official Statement have been duly authorized by the Issuer; 6. All authorizations, approvals, licenses, permits, consents and orders of any governmental authority, legislative body, board, agency or commission having jurisdiction of the matter which are required for the due authorization of, which would constitute a condition precedent to, or the absence of which would materially adversely affect the due performance by the Issuer of its obligations under the Issuer Documents and the Bonds have been obtained; 7. There is no legislation, action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, government agency, public board or body, pending or, to the best knowledge of the Issuer, after due inquiry threatened against the Issuer, affecting the corporate existence of the Issuer or, except as disclosed in the Official Statement, the titles of its officers to their respective offices, or affecting or seeking to prohibit, restrain or enjoin the sale, issuance or delivery of the Bonds or the levying, receipt and collection of the Pledged Funds) pursuant to the Bond Resolution or in any way contesting or affecting the validity or enforceability of the Bonds, the Issuer Documents, or contesting the exclusion from gross income of interest on the Bonds for federal income tax purposes or state tax purposes, or contesting in any way the completeness or accuracy of the Preliminary Official Statement or the Official Statement or any supplement or amendment thereto, or contesting the powers of the Issuer or any authority for the issuance of the Bonds, the adoption of the Bond Resolution or the execution and delivery of the Issuer Documents, nor, to the best of our knowledge, is there any basis therefor, wherein an unfavorable decision; ruling or finding would materially adversely affect the validity or enforceability of the Bonds, or the Issuer Documents; 8. The execution and delivery of the Issuer Documents and compliance by the Issuer with the provisions thereof, under the circumstances contemplated therein, will not conflict with or constitute on the part of the Issuer a material breach of or a default under any agreement or instrument to which the Issuer is a party, or violate any existing law, administrative regulation, court order, or consent decree to which the Issuer is subject; 9. Based on the examination we have caused to be made and our participation at conferences at which the Preliminary Official Statement and the Official Statement were discussed, nothing has come to our attention to lead us to believe that the information contained in the Preliminary Official Statement or the Official Statement relating to the City (except financial and statistical information thereof as to which no opinion is expressed), as to legal matters only, contains any untrue statement of material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein, in light of circumstances under which they were made, not misleading; and IM 10. All conditions precedent to the issuance of the Bonds contained in resolutions or ordinances of the City have been complied with. Sincerely, Goren, Cherof, Doody & Ezrol, P.A. rMO EXHIBITC CERTIFICATE OF CITY AS TO SIGNATURES, NO LITIGATION AND OTHER MATTERS The undersigned, Harry Dressler, Mayor, Michael C. Cemech, City Manager, Mark C. Mason, CPA, Director of Financial Services (but not with respect to Paragraph X as to each), and Patricia A. Teufel, CMC, City Clerk (but only with respect to Paragraphs VIII, IX and X) of the City of Tamarac, Florida (the "City"), in connection with the issuance this day by the City of the following described obligations (the "Bonds"): $ City of Tamarac, Florida Capital Improvement Revenue Bonds, Series 2018, dated , 2018, numbered consecutively from R-1 upward, in the denomination of $5,000 each or integral multiples thereof, bearing interest (payable April 1 and October 1, commencing 1, 201_) at the rates and maturing on October 1, in the following years and amounts: $ Serial Bonds Year Interest (October 1) Amount Rate no T-TFRFRV rFRTIFV th t- I The representations and warranties of the City contained in the Bond Purchase Agreement dated June _, 2018 between the City and Stifel, Nicolaus & Company, Incorporated, acting on behalf of itself and RBC Capital Markets, and UBS Financial Services, Inc. (the "Purchase Contract") are true and correct in all material respects as of the date hereof, the City has satisfied all conditions on its part to be performed or satisfied thereunder, and the information and statements contained in the Official Statement with respect to the Bonds dated June_, 2018 (the "Official Statement") were, as of the date of the Official Statement, and are, as of the date hereof, true, correct and complete in all material respects for the purposes for which such Official Statement is to be used, and that such information in the Official Statement did not and does not include any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that such certification does not include the information concerning DTC and DTC's book -entry only system contained in the Official Statement. n C-1 II No event affecting the City has occurred since the date of the Official Statement which should be disclosed in the Official Statement for the purposes for which it is to be used or which is necessary to be disclosed therein in order to make the statements and information therein not misleading in any material respect as of the date hereof. III The financial statements and the other financial and statistical data relating to the City and the Non -Ad Valorem Revenues and the Pledged Funds included in the Official Statement, are true and correct, as of their dates, and no event has occurred since such dates that would cause such statements and data not to be materially correct as of the date hereof. IV Since the date of the financial statements included in the Official Statement, (i) no material adverse change has occurred in the financial condition of the City, and (ii) the City has not incurred any material liabilities other than in the ordinary course of business, except as set forth in or contemplated by the Official Statement. ^ V The City is not and has not been in default on any bond issued since December 31, 1975, that -would be considered material by a reasonable investor. The City has not undertaken an independent review or investigation of securities for which it has served as conduit issuer. The City does not believe that any information about any default on such securities is appropriate and would be considered material by a reasonable investor in the Bonds because the City would not have been obligated to pay the debt service on any such securities except from payments made to it by the private companies on whose behalf such securities were issued and no funds of the City would have been pledged or used to pay such securities or the interest thereon. VI Except as disclosed in the Official Statement, there is no litigation of which any of us have notice, and no litigation is pending or, to the best knowledge of each of the undersigned, threatened against the City in any court or administrative body, nor is there any basis for litigation which would (A) contest the right of the commissioners or officials of the City to hold and exercise their respective positions, (B) contest the due organization and valid existence of the City, (C) contest the validity, due authorization or execution of the Bonds, or the Issuer Documents (as defined in the Purchase Contract) or (D) attempt to limit, enjoin or otherwise restrict or prevent the City from functioning and collecting n revenues and other income or anticipated receipt of Non -Ad Valorem Revenues or the Pledged Funds. C-2 VII The City has not been notified of any listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not be relied upon. VIII The Bonds have been signed with the manual signatures of the undersigned Mayor and the City Manager, have been attested and countersigned with the manual signature of the undersigned City Clerk, and have been approved as to fonn with the manual signature of the City Attorney. The resolutions of the City authorizing the execution, delivery and/or perfo 1 mance of the Official Statement, the Bonds and the Issuer Documents have been duly adopted by the City, are in full force and effect and have not been modified, amended or repealed. M The seal which has been impressed upon this Certificate is the legally adopted, proper and only official seal of the City, and such seal has been impressed upon said Bonds. n Capitalized terms used in this Certificate but not herein defined shall have the meanings ascribed to them in the Purchase Contract. [Signature page follows] n C-3 r� [SIGNATURE PAGE TO CERTIFICATE OF CITY AS TO SIGNATURES, NO LITIGATION AND OTHER MATTERS] WITNESS, our hand and said corporate seal this_ day of , 2018. SIGNATURE Harry Dressler Michael C. Cernech Mark C. Mason, CPA Patricia A. Teufel, CMC (SEAL) OFFICIAL TITLE Mayor City of Tamarac, Florida City Manager City of Tamarac, Florida Director of Financial Services City of Tamarac, Florida City Clerk City of Tamarac, Florida C-4 TEMP RESO. #13115 PAGE 45 EXHIBIT C FORM OF DISCLOSURE DISSEMINATION AGENT AGREEMENT n n DISCLOSURE DISSEMINATION AGENT AGREEMENT This Disclosure Dissemination Agent Agreement (the "Disclosure Agreement"), dated as of July , 2018, is executed and delivered by CITY OF TAMARAC, FLORIDA (the "Issuer") and Digital Assurance Certification, L.L.C., as exclusive Disclosure Dissemination Agent (the "Disclosure Dissemination Agent" or "DAC") for the benefit of the Holders (hereinafter defined) of the Bonds (hereinafter defined) and in order to assist the Issuer in processing certain continuing disclosure with respect to the Bonds in accordance with Rule 15c2- 12 of the United States Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time (the "Rule"). The services provided under this Disclosure Agreement solely relate to the execution of instructions received from the Issuer through use of the DAC system and do not constitute "advice" within the meaning of the Dodd -Frank Wall Street Reform and Consumer Protection Act (the "Act"). DAC will not provide any advice or recommendation to the Issuer or anyone on the Issuer's behalf regarding the "issuance of municipal securities" or any "municipal financial product" as defined in the Act and nothing in this Disclosure Agreement shall be interpreted to the contrary. DAC is not a "Municipal Advisor" as such term is defined in Section 15B of the Securities Exchange Act of 1934, as amended, and related rules. SECTION 1. Definitions. Capitalized terms not otherwise defined in this Disclosure Agreement shall have the meaning assigned in the Rule or, to the extent not in conflict with the Rule, in the Official Statement (hereinafter defined). The capitalized terms shall have the following meanings: "Annual Filing Date" means the date, set in Sections 2(a) and 2(f) hereof, by which the Annual Report is to be filed with the MSRB. "Annual Financial Information" means annual financial information as such term is used in paragraph (b)(S)(i) of the Rule and specified in Section 3(a) of this Disclosure Agreement. "Annual Report" means an Annual Report containing Annual Financial Information described in and consistent with Section 3 of this Disclosure Agreement. "Audited Financial Statements" means the annual financial statements of the Issuer for the prior fiscal year, certified by an independent auditor as prepared in accordance with generally accepted accounting principles or otherwise, as such term is used in paragraph (b)(S)(i)(B) of the Rule and specified in Section 3(b) of this Disclosure Agreement. "Bonds" means the bonds as listed on the attached Exhibit A, with the 9-digit CUSIP numbers relating thereto. "Certification" means a written certification of compliance signed by the Disclosure ,..� Representative stating that the Annual Report, Audited Financial Statements, Notice Event notice, Failure to File Event notice, Voluntary Event Disclosure or Voluntary 45105715,2 10-*\, Financial Disclosure delivered to the Disclosure Dissemination Agent is the Annual Report, Audited Financial Statements, Notice Event notice, Failure to File Event notice, Voluntary Event Disclosure or Voluntary Financial Disclosure required to be submitted to the MSRB under this Disclosure Agreement. A Certification shall accompany each such document submitted to the Disclosure Dissemination Agent by the Issuer and include the full name of the Bonds and the 9-digit CUSIP numbers for all Bonds to which the document applies. "Disclosure Dissemination Agent" means Digital Assurance Certification, L.L.C, acting in its capacity as Disclosure Dissemination Agent hereunder, or any successor Disclosure Dissemination Agent designated in writing by the Issuer pursuant to Section 9 hereof. "Disclosure Representative" means the Director of Financial Services of the Issuer or his or her designee, or such other person as the Issuer shall designate in writing to the Disclosure Dissemination Agent from time to time as the person responsible for providing Information to the Disclosure Dissemination Agent. "Failure to File Event" means the Issuer's failure to file an Annual Report on or before the Annual Filing Date. "Force Majeure Event" means: (i) acts of God, war, or terrorist action; (ii) failure or shut- down of the Electronic Municipal Market Access system maintained by the MSRB; or (iii) to the extent beyond the Disclosure Dissemination Agent's reasonable control, /-N interruptions in telecommunications or utilities services, failure, malfunction or error of any telecommunications, computer or other electrical, mechanical or technological application, service or system, computer virus, interruptions in Internet service or telephone service (including due to a virus, electrical delivery problem or similar occurrence) that affect Internet users generally, or in the local area in which the Disclosure Dissemination Agent or the MSRB is located, or acts of any government, regulatory or any other competent authority the effect of which is to prohibit the Disclosure Dissemination Agent from performance of its obligations under this Disclosure Agreement. "Holder" means any person (a) having the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries) or (b) treated as the owner of any Bonds for federal income tax purposes. "Information" means, collectively, the Annual Reports, the Audited Financial Statements, the Notice Event notices, the Failure to File Event notices, the Voluntary Event Disclosures and the Voluntary Financial Disclosures. "MSRB" means the Municipal Securities Rulemaking Board, or any successor thereto, established pursuant to Section 1513(b)(1) of the Securities Exchange Act of 1934. "Notice Event" means any of the events enumerated in paragraph (b)(5)(i)(C) of the Rule and listed in Section 4(a) of this Disclosure Agreement. /-N, 2 45105715,2 i"N "Obligated Person" means any person, including the Issuer, who is either generally or through an enterprise, fund, or account of such person committed by contract or other arrangement to support payment of all, or part of the obligations on the Bonds (other than providers of municipal bond insurance, letters of credit, or other liquidity facilities), as shown on Exhibit A. "Official Statement" means that Official Statement prepared by the Issuer in connection with the Bonds, as listed in Exhibit A. "Trustee" means the institution, if any, identified as such in the document under which the Bonds were issued. "Voluntary Event Disclosure" means information of the category specified in any of subsections (e)(vi)(1) through (e)(vi)(11) of Section 2 of this Disclosure Agreement that is accompanied by a Certification of the Disclosure Representative containing the information prescribed by Section 7(a) of this Disclosure Agreement. "Voluntary Financial Disclosure" means information of the category specified in any of subsections (e)(vii)(1) through (e)(vii)(9) of Section 2 of this Disclosure Agreement that is accompanied by a Certification of the Disclosure Representative containing the information prescribed by Section 7(b) of this Disclosure Agreement. SECTION 2. Provision of Annual Reports. (a) The Issuer shall provide, annually, an electronic copy of the Annual Report and Certification to the Disclosure Dissemination Agent not later than the Annual Filing Date. Promptly upon receipt of an electronic copy of the Annual Report and the Certification, the Disclosure Dissemination Agent shaii provide an Annual Report to the MSRB not later than the 210 days following the end of each fiscal year of the Issuer, commencing with the fiscal year ending September 30, 2018. Such date and each anniversary thereof is the Annual Filing Date. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in Section 3 of this Disclosure Agreement. (b) If on the fifteenth (15th) day prior to the Annual Filing Date, the Disclosure Dissemination Agent has not received a copy of the Annual Report and Certification, the Disclosure Dissemination Agent shall contact the Disclosure Representative by telephone and in writing (which may be by e-mail) to remind the Issuer of its undertaking to provide the Annual Report pursuant to Section 2(a). Upon such reminder, the Disclosure Representative shall either (i) provide the Disclosure Dissemination Agent with an electronic copy of the Annual Report and the Certification no later than two (2) business days prior to the Annual Filing Date, or (ii) instruct the Disclosure Dissemination Agent in writing that the Issuer will not be able to file the Annual Report within the time required under this Disclosure Agreement, state the date by which the Annual Report for such year will be provided and instruct the Disclosure Dissemination Agent to immediately send a Failure to File Event notice to the MSRB in substantially the form 3 45105715,2 attached as Exhibit B, which may be accompanied by a cover sheet completed by the Disclosure Dissemination Agent in the form set forth in Exhibit C-1. (c) If the Disclosure Dissemination Agent has not received an Annual Report and Certification by 06:00 p.m. Eastern time on Annual Filing Date (or, if such Annual Filing Date falls on a Saturday, Sunday or holiday, then the first business day thereafter) for the Annual Report, a Failure to File Event shall have occurred and the Issuer irrevocably directs the Disclosure Dissemination Agent to immediately send a Failure to File Event notice to the MSRB in substantially the form attached as Exhibit B without reference to the anticipated filing date for the Annual Report, which may be accompanied by a cover sheet completed by the Disclosure Dissemination Agent in the form set forth in Exhibit C-1. (d) If Audited Financial Statements of the Issuer are prepared but not available prior to the Annual Filing Date, the Issuer shall, when the Audited Financial Statements are available, provide at such time an electronic copy to the Disclosure Dissemination Agent, accompanied by a Certification, together with a copy for the Trustee, if any, for filing with the MSRB. (e) The Disclosure Dissemination Agent shall: (i) verify the filing specifications of the MSRB each year prior to the Annual Filing Date; (ii) upon receipt, promptly file each Annual Report received under Sections 2(a) and 2(b) hereof with theMSRB; (iii) upon receipt, promptly file each Audited Financial Statement received under Section 2(d) hereof with the MSRB; (iv) upon receipt, promptly file the text of each Notice Event received under Sections 4(a) and 4(b)(ii) hereof with the MSRB, identifying the Notice Event as instructed by the Issuer pursuant to Section 4(a) or 4(b)(ii) hereof (being any of the categories set forth below) when filing pursuant to Section 4(c)of this Disclosure Agreement: 1. "Principal and interest payment delinquencies;" 2. "Non -Payment related defaults, if material;" 3. "Unscheduled draws on debt service reserves reflecting financial difficulties;" 4. "Unscheduled draws on credit enhancements reflecting financial difficulties;" 5. "Substitution of credit or liquidity providers, or their failure to perform;" 4 45105715,2 /10"� 6. "Adverse tax opm Ions, IRS notices or events affecting the tax status of the security;" 7. "Modifications to rights of securities holders, if material;" 8. 'Bond calls, if material;" 9. "Defeasances;" 10. "Release, substitution, or sale of property securing repayment of the securities, if material;" 11. "Rating changes;" 12. "Tender offers;" 13. 'Bankruptcy, insolvency, receivership or similar event of the obligated person;" 14. "Merger, consolidation, or acquisition of the obligated person, if material;" and 15. "Appointment of a successor or additional trustee, or the change of name of a trustee, if material;" (v) upon receipt (or irrevocable direction pursuant to Section 2(c) of this Disclosure Agreement, as applicable), promptly file a completed copy of Exhibit B to this Disclosure Agreement with the MSRB, identifying the filing as "Failure to provide annual financial information as required" when filing pursuant to Section 2(b)(ii) or Section 2(c) of this Disclosure Agreement; (vi) upon receipt, promptly file the text of each Voluntary Event Disclosure received under Section 7(a) hereof with the MSRB, identifying the Voluntary Event Disclosure as instructed by the Issuer pursuant to Section 7(a) (being any of the categories set forth below) when filing pursuant to Section 7(a) of this Disclosure Agreement: 1. "amendment to continuing disclosure undertaking;" 2. "change in obligated person;" 3. "notice to investors pursuant to bond documents;" 4. "certain communications from the Internal Revenue Service;" other than those communications included in the Rule; 5. "secondary market purchases;" 5 45105715,2 6. "bid for auction rate or other securities;" 7. "capital or other financing plan;" 8. "litigation/enforcement action;" 9. "change of tender agent, remarketing agent, or other on -going per, 10. "derivative or other similar transaction;" and 11. 'other event -based disclosures;" (vii) upon receipt, promptly file the text of each Voluntary Financial Disclosure received under Section 7(b) hereof with the MSRB, identifying the Voluntary Financial Disclosure as instructed by the Issuer pursuant to Section 7(b) (being any of the categories set forth below) when filing pursuant to Section 7(b) of this Disclosure Agreement: 1. "quarterly/monthly financial information;" 2. "Timing of annual disclosure (120/150 days);" 3. "change in fiscal year/timing of annual disclosure;" 4. "change in accounting standard;" 5. "interim/additional financial information/operating data;" 6. "budget;" 7. "investment/debt/financial policy;" 8. "information provided to rating agency, credit/liquidity provider or other third party;" 9. "consultant reports;" and 10. 'other financial/operating data." (viii) provide the Issuer evidence of the filings of each of the above when made, which shall be by means of the DAC system, for so long as DAC is the Disclosure Dissemination Agent under this Disclosure Agreement. (f) The Issuer may adjust the Annual Filing Date upon change of its fiscal year by providing written notice of such change and the new Annual Filing Date to the Disclosure Dissemination Agent, Trustee (if any) and the MSRB, provided that the period between the existing Annual Filing Date and new Annual Filing Date shall not exceed one year. 6 45105715,2 (g) Anything in this Disclosure Agreement to the contrary notwithstanding, any Information received by the Disclosure Dissemination Agent before 6:00 p.m. Eastern time on any business day that it is required to file with the MSRB pursuant to the terms of this Disclosure Agreement and that is accompanied by a Certification and all other information required by the terms of this Disclosure Agreement will be filed by the Disclosure Dissemination Agent with the MSRB no later than 11:59 p.m. Eastern time on the same business day; provided, however, the Disclosure Dissemination Agent shall have no liability for any delay in filing with the MSRB if such delay is caused by a Force Majeure Event provided that the Disclosure Dissemination Agent uses reasonable efforts to make any such filing as soon as possible. SECTION 3. Content of Annual Reports. (a) Each Annual Report shall contain Annual Financial Information with respect to the Issuer, including the information provided in the Official Statement under the headings: "General Fund Non -Ad Valorem Revenues Legally Available To Pay Debt Service on Series 2018 Bonds Last Six Fiscal Years," "Historical Revenues and Expenditures," OUTSTANDING DEBT SECURED BY NON -AD VALOREM REVENUE SOURCES," "HISTORICAL DEBT SERVICE COVERAGE" and "PENSIONS AND OTHER POST EMPLOYMENT BENEFITS." (b) Audited Financial Statements as described in the Official Statement will be included in the Annual Report. If audited financial statements are not available, then unaudited financial statements, prepared in accordance with generally accepted accounting principals as described in the Official Statement will be included in the Annual Report. In such event, Audited Financial Statements (if any) will be provided pursuant to Section 2(d). Any or all of the items listed above may be included by specific reference from other documents including as to those items listed in (a) above the Audited Financial Statements, including official statements of debt issues with respect to which the Issuer is an "obligated person" (as defined by the Rule), which have been previously filed with the Securities and Exchange Commission or available on the MSRB Internet Website. If the document incorporated by reference is a final official statement, it must be available from the MSRB. The Issuer will clearly identify each such document so incorporated by reference. If the Annual Financial Information contains modified operating data or financial information different from the Annual Financial Information agreed to in the continuing disclosure undertaking related to the Bonds, the Issuer is required to explain, in narrative form, the reasons for the modification and the impact of the change in the type of operating data or financia.l information being provided. SECTION 4. Reporting of Notice Events. (a) The occurrence of any of the following events with respect to the Bonds constitutes a Notice Event: Principal and interest payment delinquencies; 2. Non-payment related defaults, ifmaterial; 7 45105715,2 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; 7. Modifications to rights of Bond holders, if material; 8. Bond calls, if material, and tender offers; 9. Defeasances; 10. Release, substitution, or sale of property securing repayment of the Bonds, if material; 11. Rating changes; 12. Bankruptcy, insolvency, receivership or similar event of the Obligated Person; Note to subsection (a)(12) of this Section 4: For the purposes of the event described in subsection (a)(12) of this Section 4, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an Obligated Person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the Obligated Person, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the Obligated Person. 13. The consummation of a merger, consolidation, or acquisition involving an Obligated Person or the sale of all or substantially all of the assets of the Obligated Person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination 8 45105715,2 of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and 14. Appointment of a successor or additional trustee or the change of name of a trustee, if material. The Issuer shall, in a timely manner not later than nine (9) business days after its occurrence, notify the Disclosure Dissemination Agent in writing of the occurrence of a Notice Event. Such notice shall instruct the Disclosure Dissemination Agent to report the occurrence pursuant to subsection (c) and shall be accompanied by a Certification. Such notice or Certification shall identify the Notice Event that has occurred (which shall be any of the categories set forth in Section 2(e)(iv) of this Disclosure Agreement), include the text of the disclosure that the Issuer desires to make, contain the written authorization of the Issuer for the Disclosure Dissemination Agent to disseminate such information, and identify the date the Issuer desires for the Disclosure Dissemination Agent to disseminate the information (provided that such date is not later than the tenth business day after the occurrence of the Notice Event). (b) The Disclosure Dissemination Agent is under no obligation to notify the Issuer or the Disclosure Representative of an event that may constitute a Notice Event. In the event the Disclosure Dissemination Agent so notifies the Disclosure Representative, the Disclosure Representative will within two business days of receipt of such notice (but in any event not later than the tenth business day after the occurrence of the Notice Event, if the Issuer determines that a Notice Event has occurred), instruct the Disclosure Dissemination Agent that either (i) a Notice Event has not occurred and no filing is to be made or (ii) a Notice Event has occurred and the Disclosure Dissemination Agent is to report the occurrence pursuant to subsection (c) of this Section 4, together with a Certification. Such Certification shall identify the Notice Event that has occurred (which shall be any of the categories set forth in Section 2(e)(iv) of this Disclosure Agreement), include the text of the disclosure that the Issuer desires to make, contain the written authorization of the Issuer for the Disclosure Dissemination Agent to disseminate such information, and identify the date the Issuer desires for the Disclosure Dissemination Agent to disseminate the information (provided that such date is not later than the tenth business day after the occurrence of the Notice Event). (c) If the Disclosure Dissemination Agent has been instructed by the Issuer as prescribed in subsection (a) or (b)(ii) of this Section 4 to report the occurrence of a Notice Event, the Disclosure Dissemination Agent shall promptly file a notice of such occurrence with MSRB in accordance with Section 2 (e)(iv) hereof. This notice may be filed with a cover sheet completed by the Disclosure Dissemination Agent in the form set forth in Exhibit C-1. SECTION 5. CUSIP Numbers. The Issuer will provide the Dissemination Agent with the CUSIP numbers for (i) new bonds at such time as they are issued or become subject to the Rule and (ii) any Bonds to which new CUSIP numbers are assigned in substitution for the CUSIP numbers previously assigned to such Bonds. SECTION 6. Additional Disclosure Obligations. The Issuer acknowledges and understands that other state and federal laws, including but not limited to the Securities Act of 1933 and Rule lOb-5 promulgated under the Securities Exchange Act of 1934, may apply to the 9 45105715,2 Issuer, and that the duties and responsibilities of the Disclosure Dissemination Agent under this Disclosure Agreement do not extend to providing legal advice regarding such laws. The Issuer acknowledges and understands that the duties of the Disclosure Dissemination Agent relate exclusively to execution of the mechanical tasks of disseminating information as described in this Disclosure Agreement. SECTION 7. Voluntary Filing. (a) The Issuer may instruct the Disclosure Dissemination Agent to file a Voluntary Event Disclosure with the MSRB from time to time pursuant to a Certification of the Disclosure Representative. Such Certification shall identify the Voluntary Event Disclosure (which shall be any of the categories set forth in Section 2(e)(vi) of this Disclosure Agreement), include the text of the disclosure that the Issuer desires to make, contain the written authorization of the Issuer for the Disclosure Dissemination Agent to disseminate such information, and identify the date the Issuer desires for the Disclosure Dissemination Agent to disseminate the information. If the Disclosure Dissemination Agent has been instructed by the Issuer as prescribed in this Section 7(a) to file a Voluntary Event Disclosure, the Disclosure Dissemination Agent shall promptly file such Voluntary Event Disclosure with the MSRB in accordance with Section 2(e)(vi) hereof. This notice may be filed with a cover sheet completed by the Disclosure Dissemination Agent in the form set forth in Exhibit C-2. (b) The Issuer may instruct the Disclosure Dissemination Agent to file a Voluntary Financial Disclosure with the MSRB from time to time pursuant to a Certification of the /11- Disclosure Representative. Such Certification shall identify the Voluntary Financial Disclosure (which shall be any of the categories set forth in Section 2(e)(vii) of this Disclosure Agreement), include the text of the disclosure that the Issuer desires to make, contain the written authorization of the Issuer for the Disclosure Dissemination Agent to disseminate such information, and identify the date the Issuer desires for the Disclosure Dissemination Agent to disseminate the information. If the Disclosure Dissemination Agent has been instructed by the Issuer as prescribed in this Section 7(b) hereof to file a Voluntary Financial Disclosure, the Disclosure Dissemination Agent shall promptly file such Voluntary Financial Disclosure with the MSRB in accordance with Section 2(e)(vii) hereof. This notice may be filed with a cover sheet completed by the Disclosure Dissemination Agent in the form set forth in Exhibit C-3. (c) The parties hereto acknowledge that the Issuer is not obligated pursuant to the terms of this Disclosure Agreement to file any Voluntary Event Disclosure pursuant to Section 7(a) hereof or any Voluntary Financial Disclosure pursuant to Section 7(b) hereof. (d) Nothing in this Disclosure Agreement shall be deemed to prevent the Issuer from disseminating any other information through the Disclosure Dissemination Agent using the means of dissemination set forth in this Disclosure Agreement or including any other information in any Annual Report, Audited Financial Statements, Notice Event notice, Failure to File Event notice, Voluntary Event Disclosure or Voluntary Financial Disclosure, in addition to that required by this Disclosure Agreement. If the Issuer chooses to include any information in any Annual Report, Audited Financial Statements, Notice Event notice, Failure to File Event notice, Voluntary Event Disclosure or Voluntary Financial Disclosure in addition to that which is specifically required by this Disclosure Agreement, the Issuer shall have no obligation underthis 10 45105715,2 n Disclosure Agreement to update such information or include it in any future Annual Report, Audited Financial Statements, Notice Event notice, Failure to File Event notice, Voluntary Event Disclosure or Voluntary Financial Disclosure. SECTION 8. Termination of Reporting Obligation. The obligations of the Issuer and the Disclosure Dissemination Agent under this Disclosure Agreement shall terminate with respect to the Bonds upon the legal defeasance, prior redemption or payment in full of all of the Bonds, when the Issuer is no longer an obligated person with respect to the Bonds, or upon delivery by the Disclosure Representative to the Disclosure Dissemination Agent of an opinion of counsel expert in federal securities laws to the effect that continuing disclosure is no longer required. SECTION 9. Disclosure Dissemination Agent. The Issuer has appointed Digital Assurance Certification, L.L.C. as exclusive Disclosure Dissemination Agent under this Disclosure Agreement. The Issuer may, upon thirty days written notice to the Disclosure Dissemination Agent and the Trustee, replace or appoint a successor Disclosure Dissemination Agent. Upon termination of DAC's services as Disclosure Dissemination Agent, whether by notice of the Issuer or DAC, the Issuer agrees to appoint a successor Disclosure Dissemination Agent or, alternately, agrees to assume all responsibilities of Disclosure Dissemination Agent under this Disclosure Agreement for the benefit of the Holders of the Bonds. Notwithstanding any replacement or appointment of a successor, the Issuer shall remain liable to the Disclosure Dissemination Agent until payment in full for any and all sums owed and payable to the '""�, Disclosure Dissemination Agent. The Disclosure Dissemination Agent may resign at any time by providing thirty days' prior written notice to the Issuer. SECTION 10. Remedies in Event of Default. In the event of a failure of the Issuer or the Disclosure Dissemination Agent to comply with any provision of this Disclosure Agreement, the Holders' rights to enforce the provisions of this Agreement shall be limited solely to a right, by action in mandamus or for specific performance, to compel performance of the parties' obligation under this Disclosure Agreement. Any failure by a party to perform in accordance with this Disclosure Agreement shall not constitute a default on the Bonds or under any other document relating to the Bonds, and all rights and remedies shall be limited to those expressly stated herein. 11 45105715,2 SECTION 11. Duties, Immunities and Liabilities of Disclosure Dissemination Agent. (a) The Disclosure Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Agreement. The Disclosure Dissemination Agent's obligation to deliver the information at the times and with the contents described herein shall be limited to the extent the Issuer has provided such information to the Disclosure Dissemination Agent as required by this Disclosure Agreement. The Disclosure Dissemination Agent shall have no duty with respect to the content of any disclosures or notice made pursuant to the terms hereof. The Disclosure Dissemination Agent shall have no duty or obligation to review or verify any Information or any other information, disclosures or notices provided to it by the Issuer and shall not be deemed to be acting in any fiduciary capacity for the Issuer, the Holders of the Bonds or any other party. The Disclosure Dissemination Agent shall have no responsibility for the Issuer's failure to report to the Disclosure Dissemination Agent a Notice Event or a duty to determine the materiality thereof. The Disclosure Dissemination Agent shall have no duty to determine, or liability for failing to determine, whether the Issuer has complied with this Disclosure Agreement. The Disclosure Dissemination Agent may conclusively rely upon Certifications of the Issuer at all times. The obligations of the Issuer under this Section shall survive resignation or removal of the Disclosure Dissemination Agent and defeasance, redemption or payment of the Bonds. (b) The Disclosure Dissemination Agent may, from time to time, consult with legal counsel (either in-house or external) of its own choosing in the event of any disagreement or controversy, or question or doubt as to the construction of any of the provisions hereof or its respective duties hereunder, and shall not incur any liability and shall be fully protected in acting in good faith upon the advice of such legal counsel. The reasonable fees and expenses of such counsel shall be payable by the Issuer. (c) All documents, reports, notices, statements, information and other materials provided to the MSRB under this Agreement shall be provided in an electronic format and accompanied by identifying information as prescribed by the MSRB. SECTION 12. Amendment; Waiver. Notwithstanding any other prov 1 s 1 on of this Disclosure Agreement, the Issuer and the Disclosure Dissemination Agent may amend this Disclosure Agreement and any provision of this Disclosure Agreement may be waived, if such amendment or waiver is supported by an opinion of counsel expert in federal securities laws acceptable to both the Issuer and the Disclosure Dissemination Agent to the effect that such amendment or waiver does not materially impair the interests of Holders of the Bonds and 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; provided neither the Issuer or the Disclosure Dissemination Agent shall be obligated to agree to any amendment modifying their respective duties or obligations without their consent thereto. Notwithstanding the preceding paragraph, the Disclosure Dissemination Agent shall have the right to adopt amendments to this Disclosure Agreement necessary to comply with modifications to and interpretations of the provisions of the Rule as announced by the Securities /011N 12 45105715,2 W and Exchange Commission from time to time by giving not less than 20 days written notice of the intent to do so together with a copy of the proposed amendment to the Issuer. No such amendment shall become effective if the Issuer shall, within 10 days following the giving of such notice, send a notice to the Disclosure Dissemination Agent in writing that it objects to such amendment. SECTION 13. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the Issuer, the Trustee, if any, for the Bonds, the Disclosure Dissemination Agent, the underwriter, and the Holders from time to time of the Bonds, and shall create no rights in any other person or entity. SECTION 14. Governing Law. This Disclosure Agreement shall be governed by the laws of the State of Florida (other than with respect to conflicts of laws). SECTION 15. Counterparts. This Disclosure Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. [Remainder of page intentionally left blank.] 13 45105715,2 The Disclosure Dissemination Agent and the Issuer have caused this Continuing Disclosure Agreement to be executed, on the date first written above, by their respective officers duly authorized. DIGITAL ASSURANCE CERTIFICATION, L.L.C., as Disclosure Dissemination Agent Name: CITY OF TAMARAC, FLORIDA ATTEST: By: Harry Dressler, Mayor Pat Teufel; City Clerk Michael C. Cemech, City Manager Approved as to form: Samuel S. Goren, City Attorney 14 45105715,2 EXHIBIT A NAME AND CUSIP NUMBERS OF BONDS Name of Issuer Obligated Person(s) Name of Bond Issue: Date of Issuance: Date of Official Statement City of Tamarac, Florida City of Tamarac, Florida Capital Improvement Revenue Bonds, Series 2018 CUSIP Number: _ _ CUSIP Number: CUSIP Number: _ _ _ _ _ _ CUSIP Number: _ _ _ _ _ CUSIP Number: _ _ _ _ _ CUSIP Number: _ _ _ _ _ CUSIP Number: _ _ _ _ _ CUSIP Number: _ _ _ _ _ CUSIP Number: _ _ _ _ _ CUSIP Number: CUSIP Number: — — — — — — — — — —_ CUSIP Number: — — CUSIP Number: — — CUSIP Number: _ _ _ CUSIP Number: —_ — _ _ _ — —_ CUSIP Number: _ _ _ CUSIP Number: _ _ _ CUSIP Number: _ _ _ _ _ CUSIP Number: _— _ _ _ _ CUSIP Number: CUSIP Number: — — — — — _ — — — — CUSIP Number: CUSIP Number: — — — — — — — — — — CUSIP Number: CUSIP Number: — — — — — — — — — CUSIP Number: A — 'I 45105715,2 EXHIBITB NOTICE TO MSRB OF FAILURE TO FILE ANNUAL REPORT Issuer: City of Tamarac, Florida Obligated Person: City of Tamarac, Florida Name(s) of Bond Issue(s): Capital Improvement Revenue Bonds, Series 2018 Date(s) oflssuance: Date(s) of Disclosure Agreement: CUSIP Number: NOTICE IS HEREBY GIVEN that the Issuer has not provided an Annual Report with respect to the above -named Bonds as required by the Disclosure Agreement between the Issuer and Digital Assurance Certification, L.L.C., as Disclosure Dissemination Agent. [The Issuer has notified the Disclosure Dissemination Agent that it anticipates that the Annual Report will be filed by I. Dated: Digital Assurance Certification, L.L.C., as Disclosure Dissemination Agent, on behalf of the Issuer cc: B-1 45105715,2 EXHIBITC-1 EVENT NOTICE COVER SHEET This cover sheet and accompanying "event notice" may be sent to the MSRB, pursuant to Securities and Exchange Commission Rule 15c2-12(b)(5)(i)(C) and (D). Issuer's and/or Other Obligated Person's Name: City of Tamarac, Floridam--------------------------------- Issuer's Six -Digit CUSIP Number: 87504T or Nine -Digit CUSIP Number(s) of the bonds to which this event notice relates: Number of pages attached: Description of Notice Events (Check One): 1. "Principal and interest payment delinquencies;" 2. "Non -Payment related defaults, if material;" 3. "Unscheduled draws on debt service reserves reflecting financial difficulties;" 4. "Unscheduled draws on credit enhancements reflecting financial difficulties;" 5. "Substitution of credit or liquidity providers, or their failure to perform;" 6. "Adverse tax opinions, IRS notices or events affecting the tax status of the security;" ?. "Modifications to rights ofsecurities holders, ifmaterial;" 8._ "Bond calls, if material;" 9._ "Defeasances;" 10— "Release, substitution, or sale of property securing repayment of the securities, if material;" I1._ "Rating changes;" 12._ "Tender offers;" 13._ "Bankruptcy, insolvency, receivership or similar event of the obligated person;" 14._ "Merger, consolidation, or acquisition of the obligated person, if material;" and 15._ "Appointment of a successor or additional trustee, or the change of name of a trustee, if material." Failure to provide annual financial information as required. I hereby represent that I am authorized by the issuer or its agent to distribute this information publicly: Signature: Digital Assurance Certification, L.L.C. 315 E. Robinson Street Suite 300 Orlando, FL 32801 407-515-1100 Date: C-1 45105715,2 EXHIBITC-2 VOLUNTARY EVENT DISCLOSURE COVER SHEET This cover sheet and accompanying "voluntary event disclosure" may be sent to the MSRB, pursuant to the Disclosure Dissemination Agent Agreement dated as of between the Issuer and DAC. Issuer's and/or Other Obligated Person's Name: City of Tamarac, Flor>icla--------------------------------- Issuer's Six -Digit CUSIP Number: 87504T or Nine -Digit CUSIP Number(s) of the bonds to which this notice relates: Number of pages attached: _ Description of Voluntary Event Disclosure (Check One): 1. "amendment to continuing disclosure undertaking;" 2. "change in obligated person;" 3. "notice to investors pursuant to bond documents;" 4. "certain communications from the Internal Revenue Service;" 5. "secondary market purchases;" 6. "bid for auction rate or other securities;" ? _ "capital or other financing plan;" 8._ "litigation/enforcement action;" 9._ "change of tender agent, remarketing agent, or other on -going party;" 10. "derivative or other similar transaction;" and I I. "other event -based disclosures." I hereby represent that I am authorized by the issuer or its agent to distribute this information publicly: Signature: Name: Title : --------------------- Digital Assurance Certification, L.L.C. 315 E. Robinson Street Suite 300 Orlando, FL 32801 407-515-1100 Date: /"\ C-2 45105715,2 EXHIBIT C-3 VOLUNTARY FINANCIAL DISCLOSURE COVER SHEET This cover sheet and accompanying "voluntary financial disclosure" may be sent to the MSRB, pursuant to the Disclosure Dissemination Agent Agreement dated as of between the Issuer and DAC. Issuer's and/or Other Obligated Person's Name: City of Tamarac, Florida -------------------------------- Issuer's Six -Digit CUSIP Number: 87504T or Nine -Digit CUSIP Number(s) of the bonds to which this notice relates: Number of pages attached: _ Description of Voluntary Financial Disclosure (Check One): ! "quarterly/monthly financial information;" 2._ "change in fiscal year/timing of annual disclosure;" 3._ "change in accounting standard;" 4— "interim/additional financial information/operating data;" 5._ "budget;" 6. "investment/debt/financial policy;" 7. "information provided to rating agency, credit/liquidity provider or other third party;" 8. "consultant reports;" and 9._ "other financial/operating data." I hereby represent that I am authorized by the issuer or its agent to distribute this information publicly: Signature: Name: Title - -------------------- Digital Assurance Certification, L.L.C. 315 E. Robinson Street Suite 300 Orlando, FL 32801 407-515-1100 Date: C-3 45105715,2 TEMP RESO. #13115 PAGE 46 EXHIBIT D FORM OF PRELIMINARY OFFICIAL STATEMENT h MOO ,-*1 o" Tv PRELIMINARY OFFICIAL STATEMENT DATED JUNE_, 2018 NEW ISSUE- BOOK -ENTRY ONLY RATINGS S & P AA (Stable Outlook) Moody's Aa3 Fitch AA- (Stable Outlook) In the opinion of bond counsel, assuming compliance by the City with certain covenants, under existing statutes, regulations, and judicial decisions, the interest on the Series 2018 Bonds will be excluded from gross income for federal income tax purposes ofthe holders thereof and will not be an item of tax preference for purposes ofthe federal alternative minimum tax. However, interest on the Series 2018 Bonds shall be taken into account in determining adjusted current earnings for purposes of computing the alternative minimum tax on corporations for taxable years that began prior to January 1, 2018. The alternative minimum tax on corporations was repealed for taxable years beginning on and after January 1, 2018. See "TAX MATTERS" herein fora description of other tax consequences to holders ofthe Series 2018 Bonds. [City Logo] $1910001000* [DAC Logo] CITY OF TAMARAC, FLORIDA CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 2018 Dated Date of Delivery Due October 1, as shown on inside cover The City of Tamarac, Florida (the "City") is issuing its Capital Improvement Revenue Bonds, Series 2018 (the "Series 2018 Bonds") as fully registered bonds, without coupons, which initially will be registered in the name of Cede & Co, as nominee of The Depository Trust Company ("DTC") Individual purchases will be made in book -entry form only in denominations of$5,000 and any integral multiple thereof Purchasers of the Series 2018 Bonds (the "Beneficial Owners") will not receive physical delivery of the Series 2018 Bonds Transfer of ownership in the Series 2018 Bonds will be effected by DTC's book -entry system as described herein As long as Cede & Co is the registered owner as nominee of DTC, principal and interest payments will be made directly to such registered owner which will in turn remit such payments to the DTC Participants (as defined herein) for subsequent disbursement to the Beneficial Owners The principal, the premium, if any, and interest on the Series 2018 Bonds will be payable by U S Bank National Association, as Paying Agent, or its successors Interest on the Series 2018 Bonds is payable semi-annually April 1 and October 1 of each year commencing October 1, 2018 until maturity or prior redemption Certain ofthe Series 2018 Bonds are subject to optional and mandatory redemption prior to maturity as set forth in this Official Statement THIS COVER PAGE CONTAINS CERTAIN INFORMATION FOR QUICK REFERENCE ONLY. IT IS NOT A SUMMARY OF THIS ISSUE. INVESTORS MUST RE4D THIS ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO MAKING AN INFORMED INVESTMENT DECISION. The Series 2018 Bonds are being issued pursuant to the Constitution ofthe State of Florida, Chapter 166, Florida Statutes as amended, the municipal charter ofthe City and other applicable provisions oflaw (collectively, the "Act"), and pursuant to Resolution No R-2018-_ adopted by the City Commission ofthe City (the "City Commission") on June 13, 2018 (the "Resolution") The Series 2018 Bonds and the interest thereon are payable solely from and secured by alien upon and pledge of (1) Non -Ad Valorem Revenues (as defined herein) budgeted and appropriated by the City in accordance with the Resolution and deposited into the Debt Service Fund, and (2) until applied in accordance with the provisions ofthe Resolution, all moneys, including the investments thereof, inthe funds and accounts established under the Resolution, with the exception ofthe Rebate Fund (collectively, the "Pledged Funds") The City has covenanted and agreed to appropriate in its annual budget, by amendment ifnecessary, for each Fiscal Year in which the Series 2018 Bonds remain Outstanding, and deposit into the Debt Service Fund, sufficient amounts of Non -Ad Valorem Revenues for the payment of principal of and interest on the Series 2018 Bonds and to make all other payments required thereunderin each such Fiscal Year, subject tothe limitations described in the Resolution The City has outstanding other indebtedness as to which the City has similarly covenanted to budget and appropriate Non -Ad Valorem Revenues for payment thereof The City also has outstanding indebtedness which is secured by a pledge ofspecific Non -Ad Valorem Revenues, which indebtedness has priority over the Series 2018 Bonds as to payment from such pledged amounts See "SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2018 BONDS" and "OUTSTANDING DEBT SECURED BY NON -AD VALOREM REVENUE SOURCES" herein THE SERIES 2018 BONDS SHALL NOT BE OR CONSTITUTE GENERAL OBLIGATIONS OR INDEBTEDNESS OF THE CITY AS "BONDS" WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION, BUT SHALL BE SPECIAL OBLIGATIONS OF THE CITY, PAYABLE SOLELY FROM AND SECURED BY A LIEN UPON AND PLEDGE OF THE PLEDGED HJNDS. NO HOLDER OF ANY SERIES 2018 BOND SHALL EVER HAVE THE RIGHT TO COMPEL THE EXERCISE OF ANY AD VALOREM TAXING POWER OR THE USE OF AD VALOREM TAX REVENUES TO PAY SUCH SERIES 2018 BOND, FOR THE PAYMENT OF ANY AMOUNTS PAYABLE UNDER THE RESOLUTION, OR IN ORDER TO MAINTAIN ANY SERVICES OR PROGRAMS THAT GENERATE NON -AD VALOREM REVENUES, OR BE ENTITLED TO PAYMENT OF SUCH SERIES 2018 BOND FROM ANY MONEYS OF THE CITY EXCEPT FROM THE PLEDGED FUNDS IN THE MANNER PROVIDED IN THE RESOLUTION. SEE "SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2018 BONDS" HEREIN. The Series 2018 Bonds are being issued to (i) finance and/or reimburse the cost of acquiring, designing, constructing, reconstructing and equipping of various capital improvements of the City, including without limitation capital improvements to the City's sound walls, fire station and parks and recreation (the "Project") to pay a portion of the interest accruing on the Series 2018 Bonds and, (ui) pay costs of issuance of the Series 2018 Bonds 1lie Series 2018 Bonds are offered when, as and if issued and received by the Undern-raters, subject to the receipt of an opinion as to the validity ofthe Series 2018 Bonds and certain other matters by Bryant Miller Olive P A , Tampa, Florida, Bond Counsel Certain legal matters incident to the issuance and delivery of the Series 2018 Bonds will be passed on for the City by its counsel, Goren, Cherqf, Doody & Ezra/, P A , Fort Lauderdale, Florida and Akerman LLP, Orlando, Florida, Disclosure Counsel Nabors, Giblin & Nickerson, P A, Tampa, Florida is serving as Counsel to the Unden, -riters Larson Consulting Services, LLC, Orlando, Florida is serving as Financial Advisor to the City It is expected that the Series 2018 Bonds will be available for delivery to the Underwriters at the facilities of DTC in New York New York on or about July , 2018 STIFEL RBC CAPITAL MARKETS w F o =, Dated 2018 * Preliminary, subject to change UBS FINANCIAL SERVICES INC. CITY OFT AMARAC, FLORIDA CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 2018 MATURITIES, AMOUNTS, INTEREST RATES, PRICES, YIELDS AND INITIAL CUSIP NUMBERS Initial Maturity Interest CUSIP (Octoher 1) Amount* Rate Price Yield Number** /1 Preliminary, subject to change. ** The City is not responsible for the use of the CUSIP Numbers referenced herein nor is any representation made by the City as to their correctness. The CUSIP number for a specific maturity is subject to being changed after the issuance of the Series 2018 Bonds if celtain actions occur. ' rao 44890899,6 /1 OFFICIALS OF THE CITY OF TAMARAC, FLORIDA CITY COMMISSION Harry Dressler, Mayor Michelle J. Gomez, Vice Mayor Marlon D. Bolton, Commissioner Julie Fishman, Commissioner Debra Placko, Commissioner CITY OFFICIALS Michael C. Cernech, City Manager Mark C. Mason, CPA, Director of Financial Services Pat Teufel, City Clerk Christine A. Josephs Cajuste, CPA, Assistant Financial Services Director/Controller CITY ATTORNEY Goren, Cherof, Doody & Ezrol, P.A. Fort Lauderdale, Florida BOND COUNSEL Bryant Miller Olive P.A. Tampa, Florida DISCLOSURE COUNSEL Akerman LLP Orlando, Florida FINANCIAL ADVISOR Larson Consulting Services, LLC Orlando, Florida AUDITORS RSM US LLP Fort Lauderdale, Florida 44890899,6 n No dealer, broker, salesman or other person has been authorized to give any information or to make any representation other than the information and representations contained herein, in connection with the offering of the Series 2018 Bonds, and if given or made, such information or representations must not be relied upon as having been authorized by the City. This Official Statement does not constitute an offer to sell nor the solicitation ofan offer to buy, nor will there be any sale of the Series 2018 Bonds to any person in any jurisdiction to whom it is unlawful to make such offer, solicitation or sale. The information set forth herein has been obtained from the City and The Depository Trust Company and other sources which are believed to be reliable, and while not guaranteed as to completeness or accuracy, is believed to be correct as of the date of this Official Statement. Any statements in this Official Statement involving estimates, assumptions and matters of opinion, whether or not so expressly stated, are intended as such and not as representations of fact, and the City expressly makes no representation that such estimates, assumptions and opinions will be realized or fulfilled. Any information, estimates, assumptions and matters of opinion contained in this Official Statement are subject to change without notice, and neither the delivery of this Official Statement, nor any sale made hereunder, shall under any circumstances create any implication that there has been no change in the affairs of the City since the date hereof. The Series 2018 Bonds have not been registered with the Securities and Exchange Commission under the Securities Act of 1933, as amended, nor has the Resolution been qualified under the Trust Indenture Act of 1939, as amended, in reliance upon exemptions contained in such acts. The registration or qualification of the Series 2018 Bonds in accordance with applicable provisions of the securities laws of the states, if any, in which the Series 2018 Bonds have been- registered or qualified and the exemption from registration or qualification in certain other states cannot be regarded as a recommendation thereof Neither these states nor any of their agencies have passed upon the merits of the Series 2018 Bonds or the accuracy or completeness of this Official Statement. Any representation to the contrary may be a criminal offense. IN CONNECTION WITH THE OFFERING OF THE SERIES 2018 BONDS, THE UNDERWRITERS MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE SERIES 2018 BONDS OFFERED HEREBY AT A LEVEL ABOVE THAT WHICH MIGHT /'� OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITERS MAY OFFER AND SELL THE SERIES 2018 BONDS TO CERTAIN DEALERS AND OTHERS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES STATED ON THE INSIDE COVER PAGE OF THIS OFFICIAL STATEMENT, AND SUCH PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITERS. References herein to laws, rules, regulations, resolutions, agreements, reports and other documents do not purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by reference to the particular document, the full text of which may contain qualifications of and exceptions to statements made herein. Where full texts have not been included as appendices to this Official Statement, copies may be obtained from the City of Tamarac, Florida, 7525 NW 88th Avenue, Tamarac, Florida 33321, Attention: City Clerk, upon payment of reproduction costs and postage and handling expenses. The Underwriters have provided the following sentence for inclusion in this Official Statement: The Underwriters have reviewed the information in this Official Statement in accordance with, and as a part of, their responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriters do not guarantee the accuracy or completeness of such information. CERTAIN STATEMENTS CONTAINED IN THIS OFFICIAL STATEMENT REFLECT NOT HISTORICAL FACTS BUT FORECASTS AND "FORWARD -LOOKING STATEMENTS." IN THIS RESPECT, THE WORDS "ESTIMATE," "PROJECT," "ANTICIPATE," "EXPECT," "INTEND," "BELIEVE" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD -LOOKING STATEMENTS. ALL PROJECTIONS, FORECASTS, ASSUMPTIONS, EXPRESSIONS OF OPINIONS, ESTIMATES AND OTHER FORWARD -LOOKING STATEMENTS ARE EXPRESSLY QUALIFIED IN THEIR • ENTIRETY BY THE CAUTIONARY STATEMENTS SET FORTH IN THIS OFFICIAL STATEMENT. THIS OFFICIAL STATEMENT DOES NOT CONSTITUTE A CONTRACT BETWEEN THE CITY OR THE UNDERWRITERS AND ANY ONE OR MORE OF THE OWNERS OF THE SERIES 2018 BONDS. THIS OFFICIAL STATEMENT IS BEING PROVIDED TO PROSPECTIVE PURCHASERS EITHER IN 44890899,6 BOUND PRINTED FORM ("ORIGINAL BOUND FORMAT") OR IN ELECTRONIC FORMAT ON THE FOLLOWING WEBSITES: WWW.MUNIOS.COM OR WWW.EMMA.MSRB.ORG. THIS OFFICIAL STATEMENT SHOULD BE RELIED UPON ONLY IF IT IS IN ITS ORIGINAL BOUND FORMAT OR AS PRINTED IN ITS ENTIRETY DIRECTLY FROM SUCH WEBSITES. REFERENCES TO WEBSITE ADDRESSES PRESENTED HEREIN, INCLUDING THE CITY'S WEBSITE OR ANY OTHER WEBSITE CONTAINING INFORMATION ABOUT THE CITY, ARE FOR INFORMATIONAL PURPOSES ONLY AND MAY BE IN THE FORM OF A HYPERLINK SOLELY FOR THE READER'S CONVENIENCE. UNLESS SPECIFIED OTHERWISE, SUCH WEBSITES AND THE INFORMATION OR LINKS CONTAINED THEREIN ARE NOT INCORPORATED INTO, AND ARE NOT PART OF, THIS OFFICIAL STATEMENT FOR ANY PURPOSE INCLUDING FOR PURPOSES OF RULE 15c2-12 PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION. 44890899,6 n TABLE OF CONTENTS INTRODUCTION......................................................................................................................................................... I THECITY............................................................................................................................................................. 2 THEPROJECT.............................................................................................................................................................2 DESCRIPTION OF THE SERIES 2018 BONDS........................................................................................................3 General...................................................................................................................................................................3 Book -Entry Only System.......................................................................................................................................3 OptionalRedemption.............................................................................................................................................5 MandatoryRedemption..........................................................................................................................................5 Noticeof Redemption.............................................................................................................................................5 Effectof Redemption.............................................................................................................................................6 SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2018 BONDS......................................................6 General................................................................................................................................................................... 6 LimitedObligation.................................................................................................................................................6 Covenant to Budget and Appropriate Non -Ad Valorem Revenues.......................................................................6 Flowof Funds.........................................................................................................................................................7 Anti -Dilution Test..................................................................................................................................................8 NoImpairment........................................................................................................................................................9 NoReserve Fund....................................................................................................................................................9 /OO1 HISTORICAL REVENUES OF THE CITY................................................................................................................9 BudgetProcess.....................................................................................................................................................12 OUTSTANDING DEBT SECURED BY NON -AD VALOREM REVENUE SOURCES.......................................12 HISTORICAL DEBT SERVICE COVERAGE..........................................................................................................13 DESCRIPTION OF NON -AD VALOREM REVENUE SOURCES.........................................................................13 PublicService Taxes............................................................................................................................................14 Communication Services Tax..............................................................................................................................14 FPLElectrical Franchise Fees..............................................................................................................................14 SolidWaste Franchise Fees..................................................................................................................................14 Paymentin Lieu oftaxes......................................................................................................................................15 StateRevenue Sharing..........................................................................................................................................15 HalfCent Sales Tax..............................................................................................................................................16 FireRescue Assessment.......................................................................................................................................16 FUTUREFINANCING PLANS.................................................................................................................................17 INVESTMENTPOLICY............................................................................................................................................17 GENERAL FUND RESERVE POLICY....................................................................................................................17 DEBTMANAGEMENT POLICY..............................................................................................................................18 PENSIONS AND OTHER POST EMPLOYMENT BENEFITS...............................................................................18 PoliceOfficers Pension Plan................................................................................................................................18 GeneralEmployees Pension Fund.......................................................................................................................18 Firefighters' Pension Fund...................................................................................................................................18 Elected and Appointed Officers and Non -Represented Employees Retirement Plan ..........................................18 44890899,6 n Net Pension Liability as of September 30, 2017 for the General Employees' Pension Plan ...............................19 Net Pension Liability as of September 30, 2017 for the Police Officers' Pension Plan.......................................19 Net Pension Liability as of September 30, 2017 for the Firefighters' Pension Plan............................................19 Net Pension Liability as of September 30, 2017 for the Elected and Appointed Officers and Non -Represented Employees' Pension Plan .....................................................................................................................................19 OtherPost Employment Benefits........................................................................................................................19 Annual OPEB Cost and Net OPEB Obligation...................................................................................................20 ESTIMATED SOURCES AND USES OF FUNDS..................................................................................................22 DEBT SERVICE SCHEDULE FOR THE SERIES 2018 BONDS............................................................................22 PROPERTYTAX REFORM.....................................................................................................................................23 LEGALMATTERS....................................................................................................................................................25 LITIGATION..............................................................................................................................................................25 DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS.............................................................25 TAXMATTERS.........................................................................................................................................................26 General................................................................................................................................................................. 26 Information Reporting and Backup Withholding................................................................................................26 OtherTax Matters................................................................................................................................................27 [Tax Treatment of Original Issue Discount..........................................................................................................27 [Tax Treatment of Bond Premium.......................................................................................................................27 RATINGS....................................................................................................................................................................28 FINANCIALADVISOR.............................................................................................................................................28 FINANCIALSTATEMENTS.....................................................................................................................................28 UNDERWRITING......................................................................................................................................................28 CONTINGENTFEES.................................................................................................................................................29 ENFORCEABILITY OF REMEDIES.........................................................................................................................29 CONTINUINGDISCLOSURE..................................................................................................................................29 ACCURACY AND COMPLETENESS OF OFFICIAL STATEMENT...................................................................30 AUTHORIZATION OF OFFICIAL STATEMENT..................................................................................................31 APPENDIX A: General Information Concerning the City APPENDIX B: Audited Basic Financial Statements of the City for the Fiscal Year Ended September 30, 2017 APPENDIX C: Form of Resolution APPENDIX D: Form of Bond Counsel Opinion APPENDIX E: Form of Disclosure Dissemination Agent Agreement 44890899,6 OFFICIAL STATEMENT relating to $19,000,000* CITY OF TAMARAC,•FLORIDA CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 2018 INTRODUCTION The purpose of this Official Statement, including the cover page and all appendices, is to set forth certain information in connection with the issuance by the City of Tamarac, Florida (the "City") ofits $19,000,000* aggregate principal amount of Capital Improvement Revenue Bonds, Series 2018 (the"Series 2018 Bonds"). The Series 2018 Bonds are being issued pursuant to the Constitution ofthe State of Florida, Chapter 166, Florida Statutes, as amended, the municipal charter ofthe City and other applicable provisions of law (collectively, the "Act"), and pursuant to Resolution No. R-2018-_ adopted by the City Commission of the City (the "City Commission") on June 13, 2018 (the "Resolution"). The Series 2018 Bonds andthe interestthereon are payable solely from and secured by a lien upon and pledge of(1) Non -Ad Valorem Revenues budgeted and appropriated by the City inaccordance with the Resolution and deposited into the Debt Service Fund, and (2) until applied in accordance with the provisions ofthe Resolution, all moneys, including the investments thereof, inthe funds and accounts established under the Resolution, with the exception of the Rebate Fund (collectively, the "Pledged Funds"). The City has covenanted and agreed to appropriate in its annual budget, by amendment ifnecessary, for each Fiscal Year in which the Series 2018 Bonds remain Outstanding, and deposit into the Debt Service Fund, sufficient amounts of Non -Ad Valorem Revenues for the payment of principal of and interest on the Series 2018 Bonds and to make all other payments required thereunder in each such Fiscal Year, subject to the limitations described in the Resolution. The City has outstanding other indebtedness asto whichthe City has similarly covenanted tobudget andappropriate Non - Ad Valorem Revenues for payment ofthe Series 2018 Bonds. The City also has outstanding indebtedness which is secured by a pledge of specific Non -Ad Valorem Revenues, which indebtedness has priority over the Series 2018 Bonds as to payment from such pledged amounts. See "SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2018 BONDS" AND "OUTSTANDING DEBT SECURED BY NON -AD VALOREM REVENUE SOURCES" herein. THE SERIES 2018 Bor;os SHALL I" OT BE OR COI" STITUTE GEI" ERAL OBLIGATIOI" S OR INDEBTEDNESS OF THE CITY AS "BONDS" WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION, BUT SHALL BE SPECIAL OBLIGATIONS OF THE CITY, PAYABLE SOLELY FROM AND SECURED BY A LIEN UPON AND PLEDGE OF THE PLEDGED FUNDS. NO HOLDER OF ANY SERIES 2018 BOND SHALL EVER HAVE THE RIGHT TO COMPEL THE EXERCISE OF ANY AD VALOREM TAXING POWER OR THE USE OF AD VALOREM TAX REVENUES TO PAY SUCH SERIES 2018 BOND, FOR THE PAYMENT OF ANY AMOUNTS PAYABLE UNDER THE RESOLUTION, OR IN ORDER TO MAINTAIN ANY SERVICES OR PROGRAMS THAT GENERATE NON -AD VALOREM REVENUES, OR BE ENTITLED TO PAYMENT OF SUCH SERIES 2018 BOND FROM ANY MONEYS OF THE CITY EXCEPT FROM THE PLEDGED FUNDS IN THE MANNER PROVIDED IN THE RESOLUTION. SEE "SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2018 BONDS" HEREIN. The Series 2018 Bonds are being issued to (i) finance and/or reimburse the cost of acquiring, designing, constructing, reconstructing and equipping of various capital improvements of the City, including without limitation capital improvements to the City's sound walls, fire station and parks and recreation (the "Project") (ii) to pay a portion ofthe'interest accruing on the Series 2018 Bonds and (iii) pay costs of issuance of the Series 2018 Bonds. The Series 2018 Bonds are issuable only in the form of fully registered bonds, without coupons, in the principal amount of $5,000 or any integral multiples thereof. The interest on the Series 2018 Bonds is payable on October 1, 2018 and on each April 1 and October 1 thereafter until maturity or earlier redemption as more fully .00-N described herein. U.S. Bank National Association is serving as Registrar and Paying Agent for the Series 2018 Bonds. * Preliminary, subject to change 44890899;6 All information included herein has been provided by the City, except those attributable to other sources. Capitalized terms used but not defined herein have the same meanings as when used in the Resolution unless the context clearly indicates otherwise. Descriptions of certain terms and provisions of the Series 2018 Bonds are set forth in the Resolution, the form of which is attached to this Official Statement as APPENDIX C The description of the Series 2018 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 any such documents that are not attached as appendices hereto may be obtained from the City of Tamarac, Florida, 7525 NW 881 Avenue, Tamarac, Florida 33321, Attention: City Clerk, upon payment of reproduction costs and postage and handling expenses. This Official Statement speaks only as of its date and the information contained herein is subject to change. THE CITY The City is located in Broward County, Florida, and had an estimated 2017 population of 65,199. The City was incorporated in 1963 and operates under its own charter. The City operates under the Commissioner -Manager form of government. Policy -making and legislative authority is vested in the City Commission, which consists of a Mayor and a four member Commission. The City Commission is vested with policy -setting authority, adopting the annual budget, approving purchases and services of the governmental operations, appointing committees and hiring the City Manager and City Attorney. The City Manager is responsible for recommending and carrying out the policies and ordinances of the City Commission, appointing the heads of the City's departments with the concurrence of the City Commission, submitting of a proposed annual budget, advising the Commission as to the financial condition of the City, and overseeing the day-to-day operations of the City. For additional information regarding the City, see APPENDICES A and B attached hereto. THE PROJECT The Resolution defines the Project as the capital improvements to the City's sound walls, fire station and parks and recreation as more particularly described in the Resolution, and such other municipal capital improvements as shall be approved by the City Commission and as shall not cause the City to violate its covenants and obligations under the Resolution, including, without limitation, ail property rights, appurtenances, easements, franchises and equipment relating thereto and deemed necessary or convenient for the acquisition, design, construction, reconstruction and equipping thereof. More specifically the Project includes: AtAn Estimated Cost of Sound Walls in various parts of the City $8,800,000 The Construction of Fire Station 36 5,700,000 Improvements to Waters Edge Park 3,600,000 Total: $18,100,000 *Such Estimated Costs include Design, Construction and Contingency. The City has already expended approximately $301,000 in City funds to initiate the Project and expects that n proceeds of the Series 2018 Bonds will be sufficient to complete the Project. 44890899,6 DESCRIPTION OF THE SERIES 2018 BONDS General The Series 2018 3onds will be dated, will bear interest at the rates per annum, and subject to the redemption provisions set forth below, will mature on the dates and in the amounts set forth on the inside cover page of this Official Statement. Interest on the Series 2018 Bonds is to be computed on the basis of a 360-day year consisting of twelve thirty -day months and will be payable semi-annually on April 1 and October 1, commencing October 1, 2018 until maturity or prior redemption. U.S. Bank National Association is the initial Paying Agent and Registrar for the Series 2018 Bonds. The Series 2018 Bonds are issuable as fully registered bonds, without coupons, in denominations of$5,000 or any integral multiple in excess thereof. The Series 2018 Bonds will be initially issued in the form of a single fully - registered certificate for each maturity. Upon initial issuance, the ownership of the Series 2018 Bonds will be registered in the bond register in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York ("DTC"). See "DESCRIPTION OF THE SERIES 2018 BONDS -Book -Entry Only System" below. Book -Entry Only System THE FOLLOWING INFORMATION CONCERNING DTC AND DTC'S BOOK -ENTRY ONLY SYSTEM HASBEEN OBTAINED FROM DTC. SO LONG AS CEDE & CO. IS THE REGISTERED OWNER OF THE SERIES 2018 BONDS, AS NOMINEE OF DTC, CERTAIN REFERENCES IN THIS OFFICIAL STATEMENT TO THE SERIES 2018 BONDHOLDERS OR REGISTERED OWNERS OF THE SERIES 2018 BONDS SHALL MEAN CEDE & CO. AND SHALL NOT MEAN THE BENEFICIAL OWNERS OF THE SERIES 2018 BONDS. THE DESCRIPTION WHICH FOLLOWS OF THE PROCEDURES AND RECORD KEEPING WITH RESPECT TO BENEFICIAL OWNERSHIP INTERESTS IN THE SERIES 2018 BONDS, PAYMENT OF INTEREST AND PRINCIPAL ON THE SERIES 2018 BONDS TO DIRECT PARTICIPANTS (AS HEREINAFTER DEFINED) OR BENEFICIAL OWNERS OF THE SERIES 2018 BONDS, CONFIRMATION AND TRANSFER OF BENEFICIAL OWNERSHIP INTERESTS IN THE SERIES 2018 BONDS, AND OTHER RELATED TRANSACTIONS BY AND BETWEEN DTC, THE DIRECT PARTICIPANTS AND BENEFICIAL OWNERS OF THE SERIES 2018 BONDS IS BASED SOLELY 011 Il'IF0Riv1ATI01'1 FUIVIISHED BYT DTC. ACCORDII GL Y, ! EITHER THE CITY OR THE UNDERWRITER MAKE NOR CAN MAKE ANY REPRESENTATIONS CONCERNING THESE MATTERS. DTC, New York, New York, will act as securities depository for the Series 2018 Bonds. The Series 2018 Bonds will be issued as fully -registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully -registered Series 2018 Bond certificate will be issued for each maturity of the Series 2018 Bonds as set forth in the inside cover of this Official Statement, each in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC, the world's largest depository, is a limited -purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and nim-U.S. equity, corporate and municipal debt issues, and money market instruments from over 100 countries that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly -owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income 10-11, Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship 44890899,6 ,-11*N with a Direct Participant, either directly or indirectly ("Indirect Participants"). The Direct Participants and the Indirect Participants are collectively referred to herein as the "DTC Participants." DTC has a Standard & Poor's rating of AA+. The DTC Rules applicable to its DTC Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. Purchases of Series 2018 Bonds under the DTC system must be made by or through Direct Pmticipants, which will receive a credit for the Series 2018 Bonds on DTC's records. The ownership interest of each actual purchaser of each Series 2018 Bond ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Series 2018 Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Series 2018 Bonds, except in the event that use of the book - entry system for the Series 2018 Bonds is discontinued. To facilitate subsequent transfers, all Series 2018 Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative ofDTC. The deposit of the Series 2018 Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Series 2018 Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Series 2018 Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. n Conveyance of notices and other communications by DTC to Direct Participants, by Direct Pmticipants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Series 2018 Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Series 2018 Bonds, such as redemptions, defaults, and proposed amendments to the security documents. For example, Beneficial Owners of Series 2018 Bonds may wish to ascertain that the nominee holding the Series 2018 Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owneis. In the alternative, Beneficial Owners may wish to provide their names and addresses to the Registrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the Series 2018 Bonds within a series or maturity of a series are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such series or maturity to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Series 2018 Bonds unless authorized by a Direct Participant in accordance with DTC's MMI procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the 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 Series 2018 Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Redemption proceeds and payments of principal of and interest on the Series 2018 Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative ofDTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City or the paying agent on the payment date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC nor its nominee, the City, or the paying agent, subject to any n statutory or regulatory requirements as may be in effect from time to time. Payment of principal, premium, if any, and interest on the Series 2018 Bonds, as applicable, to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City and/or the paying agent, disbursement of such 4 44890899,6 /1, payments to Direct Participants will be the responsibility ofDTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as depository with respect to the Series 2018 Bonds at any time by giving reasonable notice to the City or paying agent. Under such circumstances, in the event that a successor depository is not obtained, the Series 2018 Bond certificates are required to be printed and delivered. Subject to the policies and procedures ofDTC (or any successor securities depository), the City may decide to discontinue use of the system of book -entry transfers through DTC (or a successor securities depository). In that event, Series 2018 Bonds certificates will be printed and delivered. The City can make no assurances that DTC will distribute payments of principal of, redemption price, if any, or interest on the Series 2018 Bonds to the Direct Participants, or that Direct and Indirect Participants will distribute payments of principal of, redemption price, if any, or interest on the Series 2018 Bonds or redemption notices to the Beneficial Owners of such Series 2018 Bonds or that they will do so on a timely basis, or that DTC or any of its Participants will act in a manner described in this Official Statement. The City is not responsible or liable for the failure of DTC to make any payment to any Direct Participant or failure of any Direct or Indirect Participant to give any notice or make any payment to a Beneficial Owner in respect of the Series 2018 Bonds or any error or delay relating thereto. Optional Redemption The Series 2018 Bonds maturing on or before October 1, , are not subject to redemption prior to their stated dates of maturity. The Series 2018 Bonds maturing on October 1,_ , and thereafter shall be subject to redemption prior to their stated dates of maturity at the option of the City, in whole or in part, on October 1, or any date thereafter, in such order as shall be determined by the City and by lot within a maturity, at the redemption price of 100% of the principal amount of the Series 2018 Bonds to be redeemed, plus accrued interest to the redemption date. Mandatory Redemption The Series 2018 Bonds maturing on October 1, 20_ will be subject to mandatory redemption prior to maturity, by lot, in such manner as the Paying Agent may deem appropriate, at 100% of the principal amount of the Series 2018 Bonds so to be redeemed, on October 1, 20_ and on each October 1 thereafter, in the following Amortization Installments and in the years specified: Amortization Installments *Maturity Notice of Redemption Unless waived by any Holder of Bonds to be redeemed, notice of any redemption shall be given by the Registrar on behalf of the City by mailing a copy of an official redemption notice by registered or certified mail at least thirty (30) days and not more than sixty (60) days prior to the date fixed for redemption to each Holder of Series 2018 Bonds to be redeemed at the address of such Holder shown on the registration books maintained by the Registrar or at such other address as shall be furnished in writing by such Holder to the Registrar; provided, however, that no defect in any notice given pursuant to the provisions of the Resolution to any Holder of Bonds to be redeemed nor failure to give such notice shall in any manner defeat the effectiveness of a call for redemption as to all other Owners of Bonds to be redeemed. A#_\ Prior to any redemption date, the City shall deposit with the Registrar an amount of money sufficient to pay the Redemption Price of all the Series 2018 Bonds or portions of Series 2018 Bonds which are to be redeemed on that date. 44890899,6 560 The Resolution provides that the City may provide that a notice of redemption may be contingent upon the occurrence of condition(s) and that if such condition(s) do not occur, the notice will be rescinded; provided notice of such rescission shall be mailed in the manner described herein to all Bondholders as soon as practicable after the City has determined to rescind the redemption. Effect of Redemption Notice of redemption having been given substantially as provided above, the Series 2018 Bonds or portions of Series 2018 Bonds so to be redeemed shall, on the redemption date, become due and payable at the Redemption Price therein specified, and from and after such date (unless the City shall default in the payment of the Redemption Price) such Series 2018 Bonds or portions of Series 2018 Bonds shall cease to bear interest. SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2018 BONDS General The Resolution defines Pledged Funds as (1) Non -Ad Valorem Revenues budgeted and appropriated by the City in accordance with the Resolution and deposited into the Debt Service Fund, and (2) until applied in accordance with the provisions of the Resolution, all moneys, including the investments thereof, in the funds and accounts established under the Resolution, with the exception of the Rebate Fund. The Series 2018 Bonds and the interest thereon are payable solely from and secured by a lien upon and pledge of the Pledged Funds. Non -Ad Valorem Revenues are defined in the Resolution as all Governmental Fund Revenues, other than revenues generated from ad valorem taxation on real or personal propelty, which are legally available to make the payments provided for in the Resolution. Pursuant to the Resolution, "Governmental Fund Revenues" mean total revenues of the City derived from any source whatsoever and that are allocated and accounted for in the "governmental funds" as shown in the annual audited financial statements of the City for the applicable Fiscal Year. Non -Ad Valorem Revenues will not be subject to a lien for the benefit of Series 2018 Bondholders until they are budgeted and appropriated and deposited into the Debt Service Fund. The City is required to deposit or credit Non -Ad Valorem Revenues into the Debt Service Fund at least five (5) business days next preceding the applicable due date. Limited Obligation THE SERIES 2018 BONDS SHALL NUT HE UR <..'.UNSTITIJTI t;J<:NJ<:RAL UHLIGATIUN:S UK INDEBTEDNESS OF THE CITY AS "BONDS" WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION, BUT SHALL BE SPECIAL OBLIGATIONS OF THE CITY, PAYABLE SOLELY FROM AND SECURED BY A LIEN UPON AND PLEDGE OF THE PLEDGED FUNDS. NO HOLDER OF ANY SERIES 2018 BOND SHALL EVER HAVE THE RIGHT TO COMPEL THE EXERCISE OF ANY AD VALOREM TAXING POWER OR THE USE OF AD VALOREM TAX REVENUES TO PAY SUCH SERIES 2018 BOND, FOR THE PAYMENT OF ANY AMOUNTS PAYABLE UNDER THE RESOLUTION, OR IN ORDER TO MAINTAIN ANY SERVICES OR PROGRAMS THAT GENERATE NON - AD VALOREM REVENUES, OR BE ENTITLED TO PAYMENT OF SUCH SERIES 2018 BOND FROM ANY MONEYS OF THE CITY EXCEPT FROM THE PLEDGED FUNDS IN THE MANNER PROVIDED IN THE RESOLUTION. Covenant to Budget and Appropriate Non -Ad Valorem Revenues Pursuant to the Resolution, the City covenants and agrees to appropriate in its annual budget, by amendment if necessary, for each Fiscal Year in which the Series 2018 Bonds remain Outstanding, sufficient amounts of Non -Ad Valorem Revenues into the Debt Service Fund for the payment of principal of and interest on the Series 2018 Bonds and to make certain other payments required under the Resolution in each such Fiscal Year. Such covenant and agreement on the part of the City is cumulative and shall continue until all payments of principal of and interest on the Series 2018 Bonds shall have been budgeted, appropriated, deposited and actually paid. The City agrees that such covenant and agreement shall be deemed to be entered into for the benefit of the Holders of the Series 2018 Bonds and that such obligation may be enforced in a court of competent jurisdiction in accordance with the remedies set forth in the Resolution. However, the City does not covenant to maintain or continue any activities, services or programs 44890899,6 now maintained or provided by the City, including those programs and services which generate user fees, regulatory fees or other Non -Ad Valorem Revenues. Such covenant and agreement to budget and appropriate Non -Ad Valorem Revenues shall not be construed as a limitation on the ability of the City to pledge all or a portion of such Non -Ad Valorem Revenues or to covenant to budget and appropriate Non -Ad Valorem Revenues for other legally permissible purposes. Nothing in the Resolution shall be deemed to pledge ad valorem to-Y rev':!nues or to permit or constitute u mortgage or lien upon any assets owned by the City or require the City to maintain any activities, services or programs now maintained or provided by the City, including those programs and services which generate user fees, regulatory fees or other Non -Ad Valorem Revenues. The covenant to budget and appropriate in its annual budget for the purposes and in the manner stated in the Resolution has the effect of making available for the payment ofthe Series 2018 Bonds the Non -Ad Valorem Revenues of the City in the manner provided in the Resolution and placing on the City a positive duty to appropriate and budget, by amendment if necessary, and deposit amounts sufficient to meet its obligations under the Resolution; subject, however, in all respects to the restrictions of Section 166.241, Florida Statutes, which make it unlawful for any municipality to expend moneys not appropriated and in excess of such municipality's current budgeted revenues. The obligation of the City to make such payments from its Non -Ad Valorem Revenues is subject in all respects to the payment of obligations secured by a pledge of such Non -Ad Valorem Revenues heretofor or hereafter entered into (including the payment of debt service on bonds and other debt instruments), and funding requirements for essential public purposes affecting health, welfare and safety of the inhabitants of the City; however, such obligation is cumulative and would carry over from Fiscal Year to Fiscal Year. The City has previously, and subject to the terms of the Resolution, may hereafter provide a covenant to budget and appropriate Non -Ad Valorem Revenues as a source of security, and/or pledge one or more of such Non -Ad Valorem Revenues to provide for payment of obligations (including debt obligations) of the City. No priority of payment among obligations payable from a covenant to budget and appropriate Non -Ad Valorem Revenues is established pursuant to the provisions of the Resolution. Such covenant to budget and appropriate does not create any lien upon or pledge of such Non -Ad Valorem Revenues until such funds are deposited in the Debt Service Fund, nor does it preclude the City from pledging in the future or covenanting to budget and appropriate in the future its Non -Ad Valorem Revenues, nor does it require the City to levy and collect any particular Non -Ad Valorem Revenues, nor does it give the Holders of the Series 2018 Bonds a prior claim on the Non -Ad Valorem Revenues as opposed to claims of general creditors of the City. The payment of the debt service of all of the Series 2018 Bonds shall be secured fo 1 thwith equally and ratably by a pledge of and a lien upon the Pledged Funds, as now or hereafter constituted. The City, pursuant to the Resolution, irrevocably pledges such Pledged Funds to the payment of the principal of and interest on the Series 2018 Bonds, and the City pursuant to the Resolution irrevocably agrees to the deposit ofNon-Ad Valorem Revenues into the Debt Service Fund at the times provided of the sums required to secure to the Holders of the Series 2018 Bonds under the Resolution, and the payment of the principal of and interest thereon when due. Until applied in accordance with the Resolution, the Non -Ad Valorem Revenues deposited by the City in the Debt Service Fund and other amounts on deposit from time to time in the funds and accounts established pursuant to the Resolution, plus any earnings thereon, shall be pledged to the repayment of the Series 2018 Bonds. Since there is no lien on the Non -Ad Valorem Revenues in favor of the holders of the Series 2018 Bonds until such amounts are deposited in the Debt Service Fund, or in favor of the holders of other obligations of the City secured by a covenant to budget and appropriate Non -Ad Valorem Revenues, pursuit ofremedies by the Series 2018 Bondholders or the holders of such other obligations may result in the payment of debt service on one of such obligations prior to the payment of debt service on the other. Flow of Funds Pursuant to the Resolution, Non -Ad Valorem Revenues shall be deposited or credited at least five (5) business days prior to the applicable due date, in the following manner to accounts within the Debt Service Fund: (a) Interest Account. The City shall deposit into or credit to the Interest Account the sum which, /� together with the balance in said Account, shall be equal to the interest on all outstanding Series 2018 Bonds accrued and unpaid and to accrue on such Interest Date. Moneys in the Interest Account shall be used to pay interest on the Series 2018 Bonds as and when the same become due, whether by redemption or otherwise, and for no other purpose. 44890899;6 (b) Principal Account. The City shall deposit into or credit to the Principal Account the sum which, together with the balance in said Account, shall equal the portion of the principal on the Outstanding Series 2018 Bonds next due. Moneys in the Principal Account shall be used to pay the principal of the Series 2018 Bonds as and when the same shall mature, and for no other purpose. (c) Bond Amortization Account. The City shall deposit into or credit to the Bond Amortization Account the sum which, together with the balance in said Account, shall equal the portion of the Amortization Installments of all Bonds Outstanding next due. Moneys in the Bond Amortization Account shall be used to purchase or redeem Term Bonds in the manner herein provided, and for no other purpose. Payments to the Bond Amortization Account shall be on a parity with payments to the Principal Account. (2) On the date established for payment of any principal of or Redemption Price, if applicable, or interest on the Series 2018 Bonds, the City shall withdraw from the appropriate account of the Debt Service Fund sufficient moneys to pay such principal or Redemption Price, if applicable, or interest and deposit such moneys with the Paying Agent for the Series 2018 Bonds to be paid. Anti -Dilution Test Pursuant to the Resolution, the City has agreed and covenanted during such time as the Series 2018 Bonds are Outstanding under the Resolution not.to incur any Debt unless it demonstrates that Non -Ad Valorem Revenues shall cover Maximum Annual Debt Service on the Series 2018 Bonds and such Debt by at least 1.5x. Such calculation shall be determined using the average of actual Non -Ad Valorem Revenues for the prior two Fiscal Years based on the City's annual audited financial statements for such Fiscal Years. For purposes of this covenant, Debt is defined at any date (without duplication) all of the following to the extent that they are secured by or payable in whole or in part from any Non -Ad Valorem Revenues (A) all obligations of the City for borrowed money or evidenced by bonds, debentures, notes or similar instruments; (B) all obligations of the City to pay the deferred purchase price of property or services, except trade accounts payable under normal trade terms and which arise in the ordinary course ofbusiness; (C) all obligations of the City as lessee under capitalized leases; and (D) all indebtedness of other Persons to the extent guaranteed by, or secured by, Non -Ad Valorem Revenues of the City; provided, however, if with respect to any obiigation contemplated in (A), (B), or (C) above, to which the City has covenanted to budget and appropriate sufficient Non -Ad Valorem Revenues to satisfy such obligation but has not secured such obligation with a lien on or pledge of any Non -Ad Valorem Revenues, and with respect to any obligation contemplated in (D) above, such obligation shall not be considered "Debt" for purposes of the Resolution unless the City has actually used Non -Ad Valorem Revenues to satisfy such obligation during the immediately preceding Fiscal Year or reasonably expects to use Non -Ad Valorem Revenues to satisfy such obligation in the current or immediately succeeding Fiscal Year. If an obligation is considered "Debt" as a result of the proviso set forth in the immediately preceding sentence, it shall continue to be considered "Debt" until the City has not used any Non -Ad Valorem Revenues to satisfy such obligation for two (2) consecutive Fiscal Years. For the purposes of the additional debt covenant, Maximum Annual Debt Service on Debt means, with respect to Debt that bears interest at a fixed interest rate, the actual annual debt service, and, with respect to Debt which bears interest at a variable interest rate, annual debt service on such Debt shall be determined assuming that interest accrues on such Debt at the current "Bond Buyer Revenue Bond Index" as published in The Bond Buyer no more than two weeks prior to any such calculation; provided, however, if any Debt, whether bearing interest at a fixed or variable interest rate, constitutes Balloon Indebtedness, annual debt service on such Debt shall be determined assuming such Debt is amortized over 25 years on an approximately level debt service basis. "Balloon Indebtedness" means Debt, 25% or more of the original principal of which matures or is obligated to be repaid during any one Fiscal Year. The foregoing notwithstanding, for purposes of calculating annual debt service, any Debt which bears interest at a variable rate with respect to which the City has entered into an interest rate swap or interest rate cap for a notional amount equal to the principal amount of such variable rate indebtedness shall be treated as bearing interest at a fixed rate equal to the fixed rate payable by the City under the interest rate swap, or the capped rate provided by the interest rate cap. 44890899,6 n The Resolution provides that with respect to debt service on any Debt with respect to which the City elects to receive or is otherwise entitled to receive direct subsidy payments from the United States Department of Treasury, when determining the interest on such Debt for any particular interest payment date, the amount of the corresponding subsidy payment shall be deducted from the amount of interest which is due and payable with respect to such Debt on the interest payment date, but only to the extent that the City reasonably believes 6at it will be in receipt of such subsidy payment on or prior to such interest payment date. In that case, such direct subsidy payments shall not be treated as Non -Ad Valorem Revenues to avoid double counting. The City is, or may become, a party to certain other resolutions and/or other agreements which contain anti - dilution tests different from the anti -dilution test described herein and set forth in the Resolution. The City is required to satisfy all such anti -dilution tests prior to the issuance of Debt. The City has satisfied all such anti -dilution tests in connection with the issuance of the Series 2018 Bonds. No Impairment Pursuant to the Resolution, the City has agreed that pledging of the Pledged Funds in the manner provided therein shall not be subject to repeal, modification or impairment by any subsequent ordinance, resolution or other proceeding of the City Commission of the City. No Reserve Fund The City has not established a debt serve reserve fund or account to secure the Series 2018 Bonds. HISTORICAL REVENUES OF THE CITY The City generally receives two primary sources of revenue, ad valorem tax revenues and non -ad valorem n revenues. The ad valorem tax revenues of the City are not pledged to the payment of the Series 2018 Bonds and the City is not obligated to budget and appropriate ad valorem tax revenues for the payment of the Series 2018 Bonds. Although the Series 2018 Bonds are not payable from ad valorem taxation, approximately 18.90% of Governmental Fund Revenues which were collected by the City in Fiscal Year 2017 were derived from ad valorem taxes. During recent years, various legislative proposals and constitutional amendments relating to ad valorem taxation have been introduced and passed. See "PROPERTY TAX REFORM" herein. Many of such proposals limit local government revenues, provide for new or increased exemptions to ad vaiorem taxation, limit the amount of revenues that local governments could generate from ad valorem taxation or otherwise restrict the ability of local governments in the State to levy ad valorem taxes at recent historical levels. There can be no assurance that legislation enacted or introduced to date, or any additional legislative proposals introduced in the future, if passed, won't have a material adverse effect upon the City or its finances. A decrease in ad valorem tax revenues may in turn increase the amount of Non -Ad Valorem Revenues required to fund essential governmental services of the City and thereby reduce the amount of Non -Ad Valorem Revenues available to be budgeted and appropriated to satisfy the obligations of the City under the Resolution and its obligations with respect to other Debt. The first table below shows historical sources of Non -Ad Valorem Revenues of the City by category. Such Non -Ad Valorem Revenues are derived from the City's General Fund and exclude Proprietary Funds. Amounts shown in particular categories may increase or decrease in the future due to factors within or outside of the control of the City. Certain categories may cease to exist altogether and new sources may come about from time to time. In addition, certain of such revenues have been specifically pledged to secure other indebtedness incurred by the City. See "OUTSTANDING DEBT SECURED BY NON -AD VALOREM REVENUE SOURCES." Any such debt is payable from such specific Non -Ad Valorem Revenue sources prior to the use of such funds to make debt service payments on the Series 2018 Bonds or to make debt service payments on any other debt of the City secured by a covenant to budget and appropriate Non -Ad Revenues as is the case for the Series 2018 Bonds. Such table is not intended to represent revenues of the City which would necessarily be available to make debt service payment on the Series 2018 Bonds; however, they are an indication of the relative amounts of Non -Ad Valorem Revenues of the City which may be available for such purpose. The second table sets forth the revenues and expenditures within the Governmental Funds of the City for the indicated years. 44890899;6 City of Tamarac, Florida General Fund Non -Ad Valorem Revenues Revenue Sources 2017 2016 2015 2014 2013 Non -Ad Valorem Taxes< h $ 9,553,365 $ 8,653,942 $ 8,643,394 $ 8,575,306 $ 8,316,869 Franchise Fees�� 5,174,213 5,139,071 5,179,351 5,001,885 4,714,971 Charges for services 2,357,352 2,124,259 2,208,755 1,919,940 1,411,834 Payment in lieu of taxes A 1,931,413 1,863,417 1,857,746 1,741,947 1,688,143 IntergovernmentalO 6,805,354 6,569,196 6,385,042 6,101,206 5,700,712 License and Permits 775,914 750,564 763,315 742,848 754,288 Fines and Forfeitures 1,769,964 1,568,814 1,791,633 1,127,720 719,777 Investment income 259,226 125,099 100,015 95,930 67,669 MiscellaneouscP 8,077,421 8,502,040 5,476,645 4,343,841 4,697,143 Total Pledgeable Non -Ad Valorem Revenue - General Fund 36,704,222 35,296,402 32,405,896 29,650,623 28,071,406 Fire Rescue Assessment of 300,000 Water Utility Tax - CIP Fund 942,632 Total Pledgeable Non -Ad Valorem Revenue - All Funds $ 37,946,854 $ 35,296,402 $ 32,405,896 $ 29,650,623 $ 28,071,406 (1) Includes 6-cent Gas Tax; Communication Services Tax, and Utility Taxes - Electric and Natural Gas (2) Includes revenues from electric, solid waste, propane and towing franchise fees (3) Amounts shown include only that portion of Fire Rescue Assessment eligible for repayment of debt (4) Consists of 6% of water & sewer revenue and stormwater revenue. (5) Consists of Half -Cent Sales Tax and State Shared Revenue which make up $6.5 million of the amount shown in fiscal year 2017 (6) Primarily includes the allocated costs to other funds for services provided by the General Fund Source City of Tamarac, Florida Financial Services Department [Remainder of Page Intentionally Left Blank] 10 44890899,6 CITY OF TAMARAC, FLORIDA HISTORICAL REVENUES AND EXPENDITURES GOVERNMENTAL FUNDS 2017 2016 2015 2014 2013 2012 REVENUES: Taxes Property $ $22,456,396 $ $20,633,533 $ $19,037,671 $ $18,058,964 $ $17,410,277 $ 16,253,245 Utility tax Other taxes 9,964,543 9,769,866 9,034,439 8,963,290 8,685,833 8,556,814 Franchise 5,174,213 5,139,071 5,179,351 5,001,885 4,714,971 4,858,123 Charges for services 4,794,532 4,019,407 4,730,312 4,595,001 3,664,156 4,181,545 Payment in lieu oftaxes 1,931,413 1,863,417 1,857,746 1,741,947 1,688,143 1,307,327 Intergovernmental 7,417,432 10,491,977 8,067,178 7,891,704 8,128,840 8,601,588 Licenses and permits 3,755,931 3,640,905 3,669,277 3,040,164 2,747,173 2,889,091 Fines and forfeitures 2,116,194 1,843,400 2,267,642 1,318,087 917,045 1,153,113 Investment income 550,381 464,576 211,046 209,895 152,127 244,525 Donations from private resources 18,513 25,548 15,508 16,826 13,907 10,792 Program repayment 31,678 9,349 14,342 34,850 10,182 Other 8,855,214 9,192,598 5,766,739 4,535,647 4,804,910 3,882,225 Special assessments 13,277,894 11,731,575 11,689,058 11,609,729 11,694,360 11,787,249 Total revenues $80,344,334 $78,825,222 $71,540,309 $67,017,989 $64,621,742 $63,735,819 EXPENDITURES: Current General government $13,158,243 $12,272,070 $11,853,038 $11,523,177 $11,898,550 $11,217,405 Public safety 41,012,216 38,513,665 33,789,019 32,562,872 31,321,080 30,640,931 Transportation 1,941,193 1,317,326 1,424,695 1,242,455 1,152,629 1,204,504 Culture and recreation 4,901,061 4,436,032 4,286,466 4,460,240 4,033,774 3,740,221 Physical environment 4,483,152 3,963,723 5,396,992 3,429,41 9 3,032,937 2,930,078 Economic environment 766,193 963,884 1,608,589 1,750,430 1,655,512 1,393,321 Human services 320,904 308,187 291,020 295,803 293,721 282,064 Debt service Principal retirement 2,473,962 2,380,691 2,177,136 2,042,798 1,890,275 1,647,131 Interest and fiscal charges 1,172,748 1,088,350 1,083,284 1,204,149 1,391,883 1,303,320 Capital outlay 6,752,057 8,034,808 3,053,038 6,027,064 5,128,406 8,758,358 Total expenditures $76,881,729 $73,278,736 $64,963,277 $64,538,407 $61,798,767 $63,117,333 Excess (deficiency) of revenues over (under) expenditures $3,462,605 $5,546,486 $6,577,032 $2,479,582 $2,822,975 $618,486 Other financing sources (uses): Refunding bonds issued $16,620,000 $16,620,000 $13,785,001 Premium on refunding bonds issued 1,665,540 Payment on refunded bond (16,620,000) (13,771,508) (15,191,417) Capital lease 555,824 546,916 527,632 607,667 Transfers in 21,864,813 16,316,909 13,424,380 13,623,378 11,920,559 14,520,914 Transfers out (22,345,195 (17,067,214) (14,054,929) (15,751,782) (11,920,559) (14,850,422) Total other financing sources (uses) ($480,382) ($194,481) ($83,633) $720,088 $786,756 $278,159 Net change in fund balances 2,982,223 5,352,005 6,493,399 3,199,670 3,609,731 896,645 Fund balances - beginning 93,111,530 87,759,525 73,321,826 70,122,156 66,512,425 65,615,780 Fund balances - ending $ $96.093.753 $ $93.111.530 $ $79,815225 $ $73,321,826 $ $70,122,156 $ $66,512,425 Source City of Tamarac, Florida Financial Services Department No representation is being made by the City that any of the sources listed above will be available in future years, or if available, will be budgeted an appropriated to pay debt service on the Series 2018 Bonds. /101N /0""N 11 44890899,6 The ability of the City to appropriate Non -Ad Valorem Revenues in sufficient amounts to pay the principal of and the interest on the Series 2018 Bonds is subject to a variety of factors, including the responsibility to provide essential governmental services, and the obligation of the City to have a balanced budget. No representation is being made by the City that any particular Non -Ad Valorem Revenue will be available for future years, or if available, will be budgeted to pay debt service on the Series 2018 Bonds. -For. further information regarding Non -Ad Valorem Revenues and liabilities and expenditures of the City, reference is made to the City's audited financial statements attached as Appendix B hereto. Continued consistent receipt of Non -Ad Valorem Revenues is dependent upon a variety of factors, including formulas specific under Florida law for the distribution of certain of such funds which take into consideration the ratio of residents in the City to total County residents. More rapid population growth in the unincorporated areas of Broward County or in other incorporated areas in Broward County as compared to population growth within the City limits could have an adverse effect on the amounts of certain Non -Ad Valorem Revenues received by the City. The amounts and availability of any of the Non -Ad Valorem Revenues to the City are also subject to change, including reduction or elimination by change of State law or changes in the facts or circumstances according to which certain of the Non - Ad Valorem Revenues are allocated. In addition, the amount of certain of the Non -Ad Valorem Revenues collected by the City is directly related to the general economy of the City. Accordingly, adverse economic conditions could have a material adverse effect on the amount of Non -Ad Valorem Revenues collected by the City. The City may also pledge certain of the Non -Ad Valorem Revenues to future debt obligations that it issues. Such Non -Ad Valorem Revenues so pledged would be required to be applied to such debt obligations prior to paying the principal of and interest on the Series 2018 Bonds. Budget Process The City Commission is required to adopt a final budget no later than September 30 of the preceding fiscal year to which the budget applies. Pursuant to Florida law, the amount available from taxation and other sources, including balances brought forward from prior fiscal years, must equal the total appropriations for expenditures and reserves. At a minimum, the adopted budget must show for each fund, as required by law and sound financial practices, budgeted revenues and expenditures by organizational unit which are at least at the level of detail required for the annual financial report The adopted budget must regulate expenditures of the municipality, and an officer of a municipal government may not expend or contract for expenditures in any fiscal year except pursuant to the adopted budget. The governing body of a municipality at any time within a fiscal year or within 60 days following the end of the fiscal year may amend a budget for that year as follows. (a) Appropriations for expenditures within a fund may be decreased or increased by motion recorded in the minutes if the total appropriations of the fund is not changed. (b) The governing body may establish procedures by which the designated budget officer may authorize budget amendments if the total appropriations of the fund is not changed. (c) If a budget amendment is required for a purpose not specifically authorized in paragraph (a) or paragraph (b), the budget amendment must be adopted in the same manner as the original budget unless otherwise specified in the municipality's charter. OUTSTANDING DEBT SECURED BY NON-ADVALOREM REVENUE SOURCES The City has indebtedness outstanding which is secured by a lien on and payable from specific Non -Ad Valorem Revenues included within the Governmental Funds. The City also has outstanding debt secured by a covenant to budget and appropriate Non -Ad Valorem Revenues, the same security as the Series 2018 Bonds. Since the Series 2018 Bonds do not have a lien on the Non -Ad Valorem Revenues of the City until budgeted and appropriated and deposited into the Debt Service Fund, the exercise ofremedies by the holders of the obligations described below 12 44890899;6 ^, or of obligations hereafter issued which are payable from Non -Ad Valorem Revenues of the City could result in payment of debt service on any such obligations prior to the payment of debt service on the Series 2018 Bonds. City of Tamarac, Florida Outstanding Gavernmental Fund Debt Secured by Non -Ad Valorem Sources Maximum Annual Sources of Security Description of Debt Wervice Half -Cent Sales Tax Sales Tax Revenue Refunding and ifneeded, Covenant to Bond, Series 2009C' I Budget and Appropriate Non -Ad Valorerri Revenues $ 660,428 Sales Tax Revenue Refunding Half -Cent Sales Tax and if needed, Covenant to Bond, Series 20lc0'I Budget and Appropriate Non -Ad Valorem Revenues 1,539,382 Capital Improvement Revenue Covenant to Budget and Appropriate Non -Ad Bonds Series 2013 Valorem Revenues 1,488,775 Taxable Redevelopment Revenue Covenant to Budget and Appropriate Non -Ad Note, Series 2017 Valorem Revenues 2,895,093 Cl) Half -Cent Sales Tax Revenues have always been sufficient to meet the debt service obligations of the debt described above. In addition the City's Stormwater System Refunding Bond, Series 2009 with a maximum annual debt service of $ although historically paid in full from stormwater service charges is also secured by a covenant to budget and appropriate Non -Ad Valorem Revenues. Stormwater service charges are not Governmental Fund Revenues. HISTORICAL DEBT SERVICE COVERAGE The following table calculates the coverage provided byt on -Ad Valoiem Revenues of the City's "Debt" (as defined in the Resolution) for Fiscal Years 2013 through 2017. See "SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2018 BONDS - "General," "SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2018 BONDS - Anti -Dilution Test" herein and APPENDIX C hereto. City of Tamarac, Florida Historical Debt Service Coverage 2017 2016 2015 2014 2013 Non -Ad Valorem Revenues $36,150,312 $33,851,149 $31,028,260 $28,861,015 $27,481,561 (Average of Prior Two Fiscal Years) Maximum Annual Debt Service on Debt $5,517,390 $5,517,390 5,421,040 5,421,040 5,421,040 Coverage 6.55x 6.14x 5.72x 5.32x 5.07x Source City of Tamarac, Florida Financial Services Department DESCRIPTION OF NON -AD VALOREM REVENUE SOURCES The major sources ofNon-Ad Valorem Revenues collected by the City that could be budgeted, appropriated and applied to the payment of debt service and other required payments under the Resolution are described below: 13 44890899,6 Public Service Taxes. Pursuant to Chapter 166.231, Laws of Florida, municipalities may levy a tax on the purchase of electricity, metered natural gas, liquefied petroleum gas either metered or bottled, 'llanufactured gas either metered or bottled, . and water service and the tax shall be levied only upon purchases within the municipality and shall not exceed 10 percent of the payments received by the seller of the taxable item from the purchaser for the purchase of such service. The City levies a 10 percent public service tax (also known as a utility tax) on electricity, metered natural gas, liquefied petroleum gas either metered or bottled, manufactured gas either metered or bottled, and water. The City began levying the public service tax on electricity on October 1, 2011 and on water on January 1, 2016. Estimated revenue from the electric public service tax is estimated at $4.2 million per year, the estimated revenue from natural gas and propane public service tax is estimated at $147,000 per year, and the estimated revenue from the water utility tax is $940,000 per year. Communication Services Tax. Effective as of October 1, 2001, the State legislature repealed both public services taxes and franchise fees for all communication services within the State in favor of a Communications Services Tax as set forth in Chapter 202, Florida Statutes (the "Communications Services Tax"). Section 202.19, Florida Statutes, as amended, authorizes any municipality within the State to levy the Communications Services Tax on the sale of communications services. Communications services means the transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals, including video services, to a point, or between or among points, by or through any electronic, radio, satellite, cable, optical, microwave, or other medium or method now in existence or hereafter devised, regardless of protocol used for such transmission or conveyance. For municipalities, such as the City of Tamarac, this tax may not exceed 5.1 % of the payments received by the providers of such communication services from purchasers generally with a service address in the City. The maximum rate does not include permitted add-ons of up to 0.12% for those municipalities who do not charge permit fees, nor does it supersede conversion or emergency rates authorized by Section 202.20, Florida Statutes, which are in excess of the maximum rate. Section 202.125, Florida Statutes, exempts all pun:hases of communication services by the Federal Government and its agencies and instrumentalities, the State and any county, municipality or political subdivision of the State and any home for the aged, religious institution or educational institution exempt from federal income tax under Section 501(c )(3) of the Internal Revenue Code. The City levies a 5.22% Local Communications Services Tax. The Communications Services Tax must be collected by the provider from purchasers and remitted to the State. The proceeds of the Communications Services Tax, less the State's costs of administration, are transferred to the Communications Services Tax Clearing Trust Fund held by the State and distributed to the City on a monthly basis. Revenue from the Local Communications Services Tax is estimated at $2.3 million per year. FPL Electrical Franchise Fees. The City levies a franchise fee on Florida Power and Light ("FPL") in return for the granting of a privilege or permitting the use of City property. These fees are included in the charges to FPL's customers within the municipal boundaries of the City. The franchise was granted for a 30-year period effective May 29, 2002. The fee payable by FPL is currently 5.9% of FPL's gross revenues (as adjusted) from its electric power sales within the municipal boundaries of the City. Revenue from the Electric Franchise Fee is currently $3.1 million. Solid Waste Franchise Fees. The City levies a franchise fee on Waste Management Inc. of Florida (­'VVMF"") in return for granting an exclusive franchise within the boundaries of the City for solid waste pick-up and hauling for all residential, multi- 14 44890899,6 family and commercial sites. Solid waste pick-up is mandatory in the City. These fees are included in the charges to WMF"s multi -family and commercial customers. The City bills, via a non -ad valorem assessment on the tax bill, all single family residential customers and the franchise fee is included in the rate for pick-up and hauling services. The franchise is for nine years commencing July 13, 2011 with one additional three (3) year term. The fee payable is a fixed foe of.$1,200,000 for residential services and $600,000 for multi -family and commercial cvstomers. Payment in Lieu of Taxes. Pursuant to financial policies adopted annually by ordinance concurrent with the annual budget, payment in lieu of taxes shall be charged to the Utilities and Stormwater funds at the rate of 6% of revenue for the purpose of recovering the costs associated with administering the use of, maintenance of, and ensuring the safe use of its streets, rights -of -way and public owned properties used by the utilities and storm water funds in providing and furnishing services to its customers. Revenue from Payment in Lieu of Taxes is estimated at $2.0 million per year. State Revenue Sharing. The Florida Revenue Sharing Act of 1972 was a major attempt by the Legislature to ensure a minimum level of.revenue parity across units oflocal government. Provisions in the enacting legislation created the Revenue Sharing Trust Fund for Municipalities. Currently, the trust fund receives 1.3653 percent of sales and use tax collections and the net collections from the one -cent municipal fuel tax. An allocation formula serves as the basis for the distribution of these revenues to each municipality that meets strict eligibility requirements. Municipalities must use the funds derived from the one -cent municipal fuel tax for transportation -related expenditures. Additionally, there are statutory limitations on the use of the funds as a pledge for bonded indebtedness. In order to be eligible to participate in revenue sharing beyond the minimum entitlement in any fiscal year, a municipal government must have satisfied a number of statutory requirements. As it relates to municipal revenue sharing, the minimum entitlement is defined as the amount of revenue, as certified by the municipal government and determined by the Department of Revenue (DOR), which must be shared with the municipality so that the municipality will receive the amount of revenue necessary to meet its obligations as the result of pledges, assignments, or trusts entered into which obligated funds received from revenue sources or proceeds distributed out of the Revenue Sharing Trust Fund for Municipalities [hereinafter Trust Fund]. The municipai revenue sharing program is administered by the Department of Revenue ("DOR"), and monthly distributions shall be made to eligible municipal governments. The program is comprised of state sales taxes and municipal fuel taxes that are collected and transferred to the Trust Fund. The percentage of each revenue source transferred into the Trust Fund is listed below. 1.3409 percent of sales and use tax collections= 76.2 percent oftotal program funding One -cent municipal fuel tax on motor fuel= 23.8 percent oftotal program funding Once each fiscal year, the DOR computes apportionment factors for use during the fiscal year. The computation shall be made prior to July 25th of each fiscal year and shall be based upon information submitted and certified to the DOR prior to June 1 st of each year. Except in the case of error, the apportionment factors shall remain in effect for the fiscal year. It is the duty of the local government to submit the certified information required for the program's administration to the DOR in a timely manner. A local government's failure to provide timely information authorizes the DOR to utilize the best information available or, if no such information is available, to take any necessary action, including partial or entire disqualification. Additionally, the local government shall waive its right to challenge the DOR"s determination as to the jurisdiction's share of program revenues. An apportionment factor is calculated for each eligible municipality using a formula consisting of the following equally weighted factors: adjusted municipal population, derived municipal sales tax collections, and municipality's relative ability to raise revenue. QMQ 15 44890899,E The adjusted municipal population factor is calculated by multiplying a given municipality's population by the appropriate adjustment factor and dividing that product by the total adjusted statewide municipal population. Depending on the municipality's population the adjustment factors currently applicable to the City is 1.791. Inmates and residents --residing in institutions operated by the federal government as well as the Florida Departments of Corrections, Health, and Children and Family Services are not consid0red to be residents of the county in which the institutions are located for the purpose of calculating the distribution proportions. In order to calculate the municipal sales tax collection factor, it is first necessary to allocate a share of the sales tax collected within a county to each of its respective municipalities. This allocation is derived on the basis of population. First, the municipality's population is divided by the total countywide population. Second, the resulting quotient is multiplied by the countywide sales tax collections to determine the sales tax collected within a given municipality. The municipal sales tax collection factor is then calculated by dividing the sales tax collected within a given municipality by the total sales tax collected within all eligible municipalities in the state. Annual revenue amounts are estimated at $2.4 million per year. Half Cent Sales Tag. Authorized in 1982, the program generates the largest amount of revenue for local governments among the state -shared revenue sources currently authorized by the Legislature. It distributes a portion of state sales tax revenue to eligible municipal governments. Additionally, the program distributes a pmtion of communications services tax revenue (separate from the Local Communications Services Tax) to eligible local governments. An allocation formula serves as the basis for the distribution. The program's primary purpose is to provide relief from ad valorem and utility taxes in addition to providing municipalities with revenues for local programs. n Only those municipal governments that meet the eligibility requirements for revenue sharing pursuant to s. 218.23 , F.S., shall participate in the program. The monies that otherwise would be distributed to a unit of local government failing to certify compliance as required bys. 218.23(1), F.S., or having otherwise failed to meet the requirements of s. 200.065, F.S., shall be deposited in the State General Revenue Fund for the twelve months following a determination of noncompliance by the Department of Revenue (DOR). Monies remitted by a sales tax dealer located within the county and transferred into the Trust Fund shall be earmarked for distribution to the governing body of each municipality within that county. Such distributions are appropriated to the DOR and distributed monthly to paiticipating units of local government. Each participating municipal government shall receive a proportion of monies earmarked for distribution within that county. Except in the case of error of population figures certified pursuant to s. 186.901, F.S., the apportionment factors shall remain in effect for the fiscal year. Any adjustments to revenue distributions to correct for population error shall be made subsequent to receipt by the DOR of the corrected certified population figures. The allocation factor for each municipal government shall be computed by dividing the municipality's total population by the sum of the county's total population plus two-thirds of the county's incorporated population. Each municipality's distribution is then determined by multiplying the allocation factor by the sales tax monies earmarked for distribution within its respective county. Annual revenue amounts are estimated at $4.3 million per year. Fire Rescue Assessment. The annual fire rescue assessments are imposed pursuant to Article VIII, section 2(b), Florida Constitution, and F.S. §§ 166.021 and 166.041 and constitute non -ad valorem assessments within the meaning and intent of the Uniform Assessment Collection Act, F.S. §§ 197.3632 and 197.3635. The Fire Rescue Assessment only applies to 16 44890899,6 the provision of Fire Rescue Services and does not fund or support in any way, the provision of Emergency Medical Services. It has been ascertained and declared that the fire rescue services, facilities, and programs of the City provide a special benefit to property within the City that is impmved by the existence or construction of a dwelling unit or building based upon legislative determinations contained in Chapter 7, Article IV - Fire Rescue Assessments, City of Tamarac Code of Ordinances. The City levies, annually, a Fire Rescue Assessment that is designed to recover at least 95% of the cost of Fire Rescues services. The City's cmTent levy is $13.1 million. FUTURE FINANCING PLANS While the City currently has no plans to issue long term debt secured by the City's covenant to budget and appropriate Non -Ad Valorem Revenues other than the Series 2018 Bonds or Debt secured by a lien on or pledge of any specific Non -Ad Valorem Revenues, the City may undertake additional financings in the future secured by Non - Ad Valorem Revenues budgeted and appropriated by the City or secured by a pledge of specific Non -Ad Valorem Revenues. Any future obligations which are secured by a pledge of specific Non -Ad Valorem Revenues will, as to the pledged Non -Ad Valorem Revenues, have priority over the City's covenant to budget and appropriate Non -Ad Valorem Revenues for the payment of debt service on the Series 2018 Bonds. Any such additional debt or obligation must, as a condition precedent to issuance, comply with the provisions of the Resolution. See SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2018 BONDS Anti -Dilution Test" herein and APPENDIX C hereto. INVESTMENT POLICY The City's current investment policy was adopted by the City Commission on June 9, 2010 and applies to all AOIN cash and investments held or controlled by the City with the exception of Pension Funds, funds held by state agencies and funds related to the issuance of debt where there are existing policies or indentures in effect. The foremost objective of the investment policy is safety of principal then maintenance ofliquidity and next the rate ofreturn. Funds under the Resolution may be invested in Permitted Investments which are defined as any legal investment under the laws of the State and the investment power of the City. The City Manager is charged with providing oversight and direction in regard to the management of the investment program but daily management responsibility rests with the Financial Services Director and the Controller. The City's investment policy provides that authorized City staff and Investment Advisors shall only purchase securities from financial institutions which are qualified as public depositories by the Treasurer of the State of Florida; institutions designated as "Primary Securities Dealers" by the Federal Reserve Bank of New York, direct issuers of commercial paper and bankers' acceptances or approved non -primary securities dealers. Investments of current operating funds are to have maturities of no longer than twenty-four (24) months. Investment in any derivative products or the use of reverse repurchase agreements requires specific City Commission approval prior to their use. The Director of Financial Services is to provide the City Commission with monthly/quarterly investment reports. The investment policy is adopted by City Ordinance. The Director of Financial Services and the Controller review the investment policy annually and the City Commission must approve any modification made thereto. GENERAL FUND RESERVE POLICY City policy provides, that reserve funds shall not be used to fund recurring expenditures. Fund balances are to be maintained at fiscally sound levels in all funds. Under current policy, the unassigned, undesignated amount of $25.0 million in the general funds is 42.42% of the proposed general fund operating expenditures (including recurring transfers). 17 44890899,E DEBT MANAGEMENT POLICY The City has a debt management policy that is to be reviewed annually by the Director of Financial Services. The City will issue debt only for the purposes of acquiring or constructing capital improvements, and for making major renovations to existing capital -improvements, for the good of the publk. Exceptions to this rule will be considered on a case -by -case basis to determine if the contemplated debt is in the best interests of the City. In addition the City may issue refunding debt provided such generates net present value savings of at least three percent (3%). Such policy also provides that Pay-as-you-go and replacement programs will be utilized whenever feasible to avoid financing costs. Debt will be issued only if the benefits outweigh the costs of the debt. The credit objective of the debt management policy is to maintain or improve the City's bond ratings. To that end, the City has exhaustive prudent financial management policies. The City's goal is to achieve an underlying rating in the double "A" range from one or more of the major rating agencies. I W_Wf,Y[W ;Y:� 11X93 fi f7 `A 01ta ► l WKWAal-ull=W- aA y W The City has four defined benefit single -employer pension plans: • General Employees' Pension Plan • Police Officers' Pension Plan • Firefighters' Pension Plan • Elected and Appointed Officers and Non -Represented Employees' Pension Plan The City also has two (2) employees who are in a defined contribution plan established under the provisions of Section 401(a) of the Internal Revenue Code of 1986, as amended. The following information under this heading has been derived for the City's Audited Financial Statements from the Fiscal Year ended September 30, 2017. Police Officers Pension Plan The Police Officers' Pension Plan is a closed plan with former City police personnel as participants. The City contracted with the Broward County Sheriffs Office as of July I, 1989 to provide police service to the City. The City has a continuing obligation to fund such plan which has 35 participants. In Fiscal Year 2017 the City contribution was $1,139,422. General Employees Pension Fund The City requires all general regular full-time employees to participate in this pension fund. The City makes a contribution to the General Employees Pension Fund in accordance with the requirements identified in the actuarial valuation, and employees are required to contribute 7% of pensionable earnings into the plan. Employees become I 00% vested when they have completed 5 years of continuous service. This pension plan provides benefits upon retirement, pre -retirement death benefits and includes provisions fordisability benefits. Firefighters' Pension Fund A participant is any individual employed by the City as a full-time firefighter as defined by the Florida Statutes. The City makes contributions to this pension fund in accordance with the requirements identified in the actuarial valuation, and employees are required to contribute 10.5% of pensionable earnings into the plan. Employees become I 00% vested when they have completed 8 years of continuous service or 5 years of service if hired prior to 2013. This pension plan provides benefits upon retirement, and includes provisions fordisability benefits. Elected and Appointed Officers and Non -Represented Employees Retirement Plan All managerial and non -bargaining employees, as well as charter officers and elected commissioners are required to participate in this plan with a few exceptions. The City makes contributions to this pension fund in accordance with the requirements identified in the actuarial valuation, and participants are required to contribute I 0% of pensionable earning into the plan. Employees vest 20% for each year of service and become fully vested when they 18 44890899,E n have completed 5 years of continuous service. This pension plan provides benefits upon retirement, and includes provisions for disability benefits and pre -retirement death benefits. An independent actuary engaged by the pension boards calculates the amount of the annual contribution the City must make -to each pension plan to ensure that the plans will be able to fully meet obligations on a ti;tlely basis. As a matter of policy, the City relies upon projections provided by an independent actuary to determine the appropriate level of funding for the pension plans. The annual budget includes the contributions necessary to keep the respective plans actuarially sound and in compliance with applicable laws, rules or regulations. Net Pension Liability as of September 30, 2017 for the General Employees' Pension Plan Total pension liability $50,461,728 Less fiduciary net position (49,333,277) Net pension liability $ 1,128,451 Plan fiduciary net position 98% as a percentage of total pension liability Net Pension Liability as of September 30, 2017 for the Police Officers' Pension Plan Total pension liability $10,591,450 Less fiduciary net position (5,352,533) Net pension liability $ 5,238,917 Plan fiduciary net position 50.54% as a percentage of total pension liability Net Pension Liability as of September 30, 2017 for the Firefighters' Pension Plan Total pension liability $112,407,817 Less fiduciary net position (98,832,191) 1" et pension liability $13,575,626 Plan fiduciary net position 88% as a percentage of total pension liability Net Pension Liability as of September 30, 2017 for the Elected and Appointed Officers and Non -Represented Employees' Pension Plan Total pension liability $48,243,904 Less fiduciary net position (45,457,198) Net pension liability $ 2,786,706 Plan fiduciary net position 94% as a percentage of total pension liability Other Post Employment Benefits The City provides Post Employment Benefits Other than Pensions (OPEB) to employees as mandated by Florida Statutes 112.801. The City is required by Section 112.0801, Florida Statutes to charge active and retired employees the same premium for post retirement healthcare benefits. Because the true cost of health insurance provided to retired employees is generally significantly higher than that for active employees, the City, as required by Florida law, is providing an indirect subsidy to the retired employees. 19 44890899,6 n Like most governments, the City historically funded the OPEB plan on a pay-as-you-go basis as a current operating expense, and reflects the expense on its financial statements in the Fiscal Year in which payments are made. However, the City has implemented Statement No. 45, Accounting and Reporting for Post -Employment Benefits Other than Pensions ("GASB 45"). Under GASB 45, certain local governments who provide other post -employment benefits, which include retiree health insurance, are required to show all or a portion oHhe liabilities associated with their OPEB plans on their financial statements and whether, and to what extent, progress is being made in funding those liabilities. GASB 45 does not require that the annual required contribution as determined by the plans actuary be paid or that the plan be fully or partially funded, only that the government account for its unfunded actuarial accrued liability and its compliance in paying its annual required contribution. The City's annual OPEB cost, the percentage of annual OPEB cost contribution and the net OPEB obligation for the City fiscal years 2015 through 2017 are as follows: 2015 2016 2017 Annual OPEB Cost $231,000 $ 232,000 $ 233,000 Amount contributed 18,160 15,010 12,240 Percentage of Annual OPEB Cost Contributed 8% 6% 5% Net OPEB Obligation $1,302,149 $1,519,139 $1,739,899 Source: City of Tamarac, Florida Annual OPEB Cost and Net OPEB Obligation The City's annual other post employment benefit (OPEB) cost is calculated based on annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the fiscal year ended September 30, 2017, the amount actually contributed and the changes in the City's net OPEB obligation: Annual required contributions $ 260,000 Interest on the net OPEB obligation 36,000 Adjustment to the ARC (63,000). Annual OPEB cost 233,000 Contribution made (12,240) Increase in net OPEB obligation 220,760 Net OPEB obligation at beginning of the year 1,519,139 Net OPEB obligation at end of the year $ 1,739,899 The City has not established a separate trust fund through which benefits under the OPEB Plan are paid and has not currently accumulated or earmarked any funds for this purpose. All approved benefits are paid from the City's legally available funds when due. As of October 1, 2015, the most recent actuarial valuate date, the actuarial ac rued liability for benefits was $1,957,000, all of which was unfunded. The covered payroll (annual payroll of active employees) was $20,539,000 and the ratio of the unfunded actuarial accrued liability to the covered payroll was 9.5%. The projection of future benefit payments for an ongoing plan involves estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents the current year information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Additional information on the City's pension and OPEB 20 44890899,6 n plans, including actuarial assumptions, can be found in Note 14 in the notes to the City's audited financial statements attached as APPENDIX B hereto. [Remainder of Page Intentionally Left Blank] to"%, /1"IN 21 44890899,6 ESTIMATED SOURCES AND USES OF FUNDS Sources Par Amount of the Series 2018 Bonds $ Plus Net Original Issue Premium TOTAL SOURCES $ Uses Deposit to Construction Fund for Project Costs $ Costs of Issuance(!) TOTAL USES $ < � Includes the costs of issuing the Series 2018 Bonds and Underwriters' discount. DEBT SERVICE SCHEDULE FOR THE SERIES 2018 BONDS Year Ending October 1 Principal Interest Total Debt Service TOTAL [Remainder of Page Intentionally Left Blank] 22 44890899,E PROPERTY TAX REFORM Non -Ad Valorem Revenues do not include ad valorem tax revenues. However, pursuant to the Resolution, funding requirements for essential public purposes affecting health, welfare and safety of inhabitants of the City must be satisfied prior to budgeting and appropriating Non -Ad Valorem Revenues for the payment of the Series 2018 Bonds and other obligations payable from Non -Ad Valorem Revenues. Ad valorem revenues have historically been used in part by the City to fund essential services of the City. Therefore, a decrease in ad valorem tax revenues may in turn increase the amount of Non -Ad Valorem Revenues required to fund essential governmental services of the City and thereby reduce the amount of Non -Ad Valorem Revenues available to be budgeted and appropriated to satisfy the obligation of the City to make payments due on the Series 2018 Bonds. Ad valorem tax receipts for City fiscal year 2017 represented 38.72% of the total revenue sources for the general fund and 18.90% of Governmental Fund revenues. Millage Rollback Legislation. In 2007, the State Legislature adopted a property tax plan which significantly impacted ad valorem tax collections for State local governments (the "Millage Rollback Legislation"). One component of the Millage Rollback Legislation required counties, cities and special districts to rollback their millage rates for the 2007-2008 Fiscal Year to a level that, with certain adjustments and exceptions, would generate the same level of ad valorem tax revenue as in Fiscal Year 2006-2007; provided, however, depending upon the relative growth of each local government's own ad valorem tax revenues from 2001 to 2006, such rolled back millage rates were determined after first reducing 2006-2007 ad valorem tax revenues by zero to nine percent (0% to 9%). In addition, the Rollback Legislation also limited how much the aggregate amount of ad valorem tax revenues may increase in future fiscal years. A local government may override certain portions of these requirements by a supermajority, and for certain requirements, a unanimous vote of its governing body. Constitutional Exemptions. Certain exemptions from property taxes have been enacted. Constitutional exemptions include, but are not limited to, property owned by a municipality and used exclusively by it for municipal or public purposes, certain household goods and personal effects to the value fixed by general law, certain locally �� approved community and economic development ad valorem tax exemptions to new businesses and expansions of existing businesses, as defined by general law and historic preservation ad valorem tax exemptions to owners of historic properties, $25,000 of the assessed value of property subject to tangible personal property tax, the assessed value of solar devices or renewable energy source devices subject to tangible personal property tax may be exempt from ad valorem taxation, subject to limitations provided by general law, and certain real property dedicated in perpetuity for conservation purposes, including real propert'; encumbered by perpetual conservation easements or by other perpetual conservation protections, as defined by general law. Homestead Exemption. In addition to the exemptions described above, the State Constitution also provides for a homestead exemption. Every person who has the legal title or beneficial title in equity to real propelty in the State and who resides thereon and in good faith makes the same his or her permanent residence or the permanent residence of others legally or naturally dependent upon such person is eligible to receive a homestead exemption of up to $50,000. The first $25,000 applies to all property taxes, including school district taxes. The additional exemption, up to $25,000, applicable to the assessed value of the property between $50,000 and $75,000, applies to all levies other than school district levies. A person who is receiving or claiming the benefit of an ad valorem tax exemption or a tax credit in another state where permanent residency, or residency of another legally or naturally dependent upon the owner, is required as a basis for the granting of that ad valorem tax exemption or tax credit is not entitled to the homestead exemption. In addition to the general homestead exemption described in this paragraph, the following additional homestead exemptions are authorized by State law: Certain Persons 65 or Older. A board of county commissioners or the governing authority of any municipality may adopt an ordinance to allow an additional homestead exemption equal to (i) of up to $50,000 for persons age 65 or older with household income that does not exceed the statutory income limitation of $20,000 (as increased by the percentage increase in the average cost of living index each year since 2001) or (ii) the assessed value of the propelty with a just value less than $250,000, as determined the first tax year that the owner applies and is approved, for any person 65 or older who has maintained the residence as his or her permanent residence for not less than 25 years and whose household income does not exceed the statutory income. (The City enacted an ordinance providing for the $25,000 exemption from City ad valorem taxes described in this paragraph.) 23 4489089916 In addition, veterans 65 or older who are partially or totally permanently disabled may receive a discount from tax on homestead property if the disability was combat related and the veteran was honorably discharged upon separation from military service. The discount is a percentage equal to the percentage of the veteran's permanent, service -connected disability as determined by the United States Department of Veteran's Affairs. Deployed Military Personnel. The State Constitution provides that by general law and subject to certain conditions specified therein, each person who receives a homestead exemption who was a member of the United States military or military reserves, the United States Coast Guard or its reserves, or the Florida National Guard; and who was deployed during the preceding calendar year on active duty outside the continental United States, Alaska, or Hawaii in support of military operations designated by the legislature shall receive an additional exemption equal to a percentage of the taxable value of his or her homestead property. The applicable percentage shall be calculated as the number of days during the preceding calendar year the person was deployed on active duty outside the continental United States, Alaska, or Hawaii in support of military operations designated by the legislature divided by the number of days in that year. Certain Active Duty Military and Veterans. A military veteran who was honorably discharged, is a resident of the State, and who is disabled to a degree of 10% or more because of misfortune or while serving during wartime may be entitled to a $5,000 reduction in the assessed value of his or her property. This exemption is not limited to homestead property. A military veteran who was honorably discharged with a service -related total and permanent disability may be eligible for a total exemption from taxes on homestead property. A similar exemption is available to disabled veterans confined to wheelchairs. Under certain circumstances, the veteran's surviving spouse may be entitled to carry over these exemptions. Certain Totally and Permanently Disabled Persons. Real estate used and owned as a homestead by a quadriplegic, less any portion used for commercial purposes, is exempt from all ad valorem taxation. Real estate used and owned as a homestead by a paraplegic, hemiplegic, or other totally and permanently disabled person, who must use a wheelchair for mobility or who is legally blind, is exempt from taxation if the gross household income is below statutory limits. Survivors of First Responders. Any real estate that is owned and used as a homestead by the surviving spouse of a first responder (law enforcement officer, correctional officer, firefighter, emergency medical technician or paramedic), who died in the line of duty may be granted a total exemption on homestead property if the first responder and his or her surviving spouse were permanent residents of the Statc on January I of the year in which the fast responder died. Recent Amendments Relating to Ad Valorem Taxation. In the 2016 legislative session, several amendments were passed affecting ad valorem taxation, including classification of agricultural lands during periods of eradication or quarantine, deleting requirements that conservation easements be renewed annually, providing that just value of real property shall be determined in the first tax year for income restricted persons age 65 or older who have maintained such property as the permanent residence for at least 25 years, authorizing a first responder who is totally and permanently disabled as a result of injuries sustained in the line of duty to receive relief from ad valorem taxes assessed on homestead property, revising procedures with respect to assessments, hearings and notifications by the value adjustment board, and revising the interest rate on unpaid ad valorem taxes. In the 2017 State legislative session, which concluded on May 8, 2017, the State legislature passed House Joint Resolution 7105 which proposes an amendment to Section 6, Article VII of the State Constitution that would increase the homestead exemption by exempting the assessed valuation of homestead property greater than $100,000 and up to $125,000 for all levies other than school district levies. If approved by the voters in November 2018, such amendment would be effective beginning with the 2019 tax roll. The City estimates that this amendment would result in a negative revenue impact to the City of approximately $1.3 million annually. However, the City does not believe that the impact will adversely affect the City's ability to pay debt service on the Series 2018 Bonds. Future Amendments Relatina to Ad Valorem Taxation. Historically, various legislative proposals and n constitutional amendments relating to ad valorem taxation have been introduced in each session of the State legislature. Many of these proposals have provided for new or increased exemptions to ad valorem taxation and limited increases 24 44890899,6 in assessed valuation of certain types of property or have otherwise restricted the ability of local governments in the State to levy ad valorem taxes at then current levels. LEGAL MATTERS Certain legal matters in connection with the authorization, issuance and sale of the Series 2018 Bonds are subject to the approval of Bryant Miller Olive P.A., Tampa, Florida, Bond Counsel, whose approving opinion will be available at the time of delivery of the Series 2018 Bonds. The proposed form of Bond Counsel opinion is attached hereto as APPENDIX D and reference is made to such form of opinion for the complete text thereof. The actual legal opinion to be delivered may vary from that text if necessary to reflect facts and law on the date of delivery. The opinion will speak only as of its date, and subsequent distribution of it by recirculation of the Official Statement or otherwise shall create no implication that Bond Counsel has reviewed or expresses any opinion concerning any of the matters referenced in the opinion subsequent to its date. Certain legal matters will be passed upon for the City by Goren, Cherof, Doody & Ezrol, P.A., Fort Lauderdale, Florida, City Attorney and Akerman LLP, Orlando, Florida, Disclosure Counsel. Nabors, Giblin & Nickerson, P.A., Tampa, Florida, is serving as counsel to the Underwriters. LITIGATION There is no pending or, to the knowledge of the City, any threatened litigation against the City of any nature whatsoever which in any way questions or affects the validity of the Series 2018 Bonds, or any proceedings or transactions relating to their issuance, sale, execution, or delivery, or the adoption of the Resolution, or the source of security for the Series 2018 Bonds as provided in the Resolution. The City experiences routine litigation and claims incidental to the conduct of its affairs. In the opinion of Aooftl� the City Attorney, there are no actions presently pending or threatened, the adverse outcome of which would have a material adverse effect on the availability of the Non -Ad Valorem Revenues or the ability of the City to pay the Series 2018 Bonds from the Pledged Funds. From time to time, the City is party to other various legal proceedings which individually are not expected to have a material adverse effect on the operations or financial condition of the City, but may, in the aggregate, have a material impact thereon. However, in the opinion of the City Attorney, the City and/or its insurance carrier will either successfully defend such actions or otherwise resolve such matters without any material adverse consequences. DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS Pursuant to Section 517.051, Florida Statutes, as amended, no person may directly or indirectly offer or sell securities of the City except by an offering circular containing full and fair disclosure of all defaults as to principal or interest on its obligations since December 31, 1975, as provided by rule of the Office of Financial Regulation which reports to the Florida Financial Services Commission (the "Commission"). Pursuant to administrative rulemaking, the Commission has required the disclosure of the amounts and types of defaults, any legal proceedings resulting from such defaults, whether a trustee or receiver has been appointed over the assets of the City, and certain additional financial information, unless the City believes in good faith that such information would not be considered material by a reasonable investor. The City is not and has not been in default on any bond issued since December 31, 1975 that would be considered material by a reasonable investor. The City has not undertaken an independent review or investigation of securities for which it has served as conduit issuer. The City does not believe that any information about any default on such securities is appropriate and would be considered material by a reasonable investor in the Series 2018 Bonds because the City would not have been obligated to pay the debt service on any such securities except from payments made to it by the private companies on whose behalf such securities were issued and no funds of the City would have been pledged or used to pay such securities or the interest thereon. 25 44890899,6 TAX MATTERS General The Code establishes certain requirements which must be met subsequent to the issuance cf the Series 2018 Bonds in order that interest on the Series 2018 Bonds. be and remain excluded from gross income for purposes of federal income taxation. Non-compliance may cause interest on the Series 2018 Bonds to be included in federal gross income retroactive to the date of issuance of the Series 2018 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 2018 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 with respect to the Series 2018 Bonds to comply with such requirements in order to maintain the exclusion from federal gross income of the interest on the Series 2018 Bonds. In the opinion of Bond Counsel, assuming compliance with certain covenants, under existing laws, regulations, judicial decisions and rulings, interest on the Series 2018 Bonds is excluded from gross income for purposes of federal income taxation. Interest on the Series 2018 Bonds is not an item of tax preference for purposes of the federal alternative minimum tax. However, interest on the Series 2018 Bonds shall be taken into account in determining adjusted current earnings for purposes of computing the alternative minimum tax on corporations for taxable years that began prior to January 1, 2018. The alternative minimum tax on corporations. was repealed for taxable years beginning on and after January 1, 2018. Except as described above, Bond Counsel will express no opinion regarding other federal income tax consequences resulting from the ownership of, receipt or accrual of interest on, or disposition of Series 2018 Bonds. Prospective purchasers of Series 2018 Bonds should be aware that the ownership of Series 2018 Bonds may result in collateral federal income tax consequences, including (i) the denial of a deduction for interest on indebtedness incurred or continued to purchase or carry Series 2018 Bonds; (ii) the reduction of the loss reserve deduction for property and casualty insurance companies by fifteen percent (15%) of certain items, including interest on Series 2018 Bonds; (iii) the inclusion of interest on Series 2018 Bonds in earnings of certain foreign corporations doing business in the United States for purposes of the branch profits tax; (iv) the inclusion of interest on Series 2018 Bonds in passive income subject to federal income taxation of certain Subchapter S corporations with Subchapter C earnings and profits at the close ofthe taxable year; and (v) the inclusion of interest on Series 2018 Bonds in "modified adjusted gross income" by recipients ofceltain Social Security and Railroad Retirement benefits for the purposes of determining whether such benefits are included in gross income for federal income tax purposes. As to questions of fact material to the opinion of Bond Counsel, Bond Counsel will rely upon representations and covenants made on behalf of the City, certificates of appropriate officers and certificates of public officials (including certifications as to the use of proceeds of the Series 2018 Bonds and of the property financed or refinanced thereby), without undertaking to verify the same by independent investigation. PURCHASE, OWNERSHIP, SALE OR DISPOSITION OF THE SERIES 2018 BONDS AND THE RECEIPT OR ACCRUAL OF THE INTEREST THEREON MAY HAVE ADVERSE FEDERAL TAX CONSEQUENCES FOR CERTAIN INDIVIDUAL AND CORPORATE BONDHOLDERS, INCLUDING, BUT NOT LIMITED TO, THE CONSEQUENCES DESCRIBED ABOVE. PROSPECTIVE BONDHOLDERS SHOULD CONSULT WITH THEIR TAX SPECIALISTS FOR INFORMATION IN THAT REGARD. Information Reporting and Backup Withholding Interest paid on tax-exempt bonds such as the Series 2018 Bonds is subject to information reporting to the Internal Revenue Service in a manner similar to interest paid on taxable obligations. This repo lting requirement does not affect the excludability of interest on the Series 2018 Bonds from gross income for federal income tax purposes. However, in conjunction with that information reporting requirement, the Code subjects certain non -corporate owners of Series- 2018 Bonds, under certain circumstances, to "backup withholding" at the rate specified in the Code with respect to payments on the Series 2018 Bonds and proceeds from the sale of Series 2018 Bonds. Any amount so withheld would be refunded or allowed as a credit against the federal income tax of such owner of Series 2018 Bonds. 26 44890899;6 This withholding generally applies if the owner of Series 2018 Bonds (i) fails to furnish the payor such owner's social security number or other taxpayer identification number ("TIN"), (ii) furnished the payor an incorrect TIN, (iii) fails to properly report interest, dividends, or other "reportable payments" as defined in the Code, or (iv) under certain circumstances, fails to provide the payor or such owner's securities broker with a certified statement, signed under penalty of perjury, that the TIN provided is correct and that such owner is nOt subject to backup withholding. Prospective purchasers of the Series 2018 Bonds may also wish to consult with their tax advisors with respect to the need to furnish certain taxpayer information in order to avoid backup withholding. Other Tax Matters 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 2018 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 2018 Bonds. From time to time, legislative proposals are pending which could have an effect on both the federal tax consequences resulting from ownership of the Series 2018 Bonds and their market value. No assurance can be given that legislative proposals will not be enacted that would apply to, or have an adverse effect upon, the Series 2018 Bonds. Prospective purchasers of the Series 2018 Bonds should consult their own tax advisors as to the tax consequences of owning the Series 2018 Bonds in their particular state or local jurisdiction and regarding any pending or proposed federal or state tax legislation, regulations or litigation, as to which Bond Counsel expresses no opinion. [Tax Treatment of Original Issue Discount Under the Code, the difference between the maturity amount of the Series 2018 Bonds maturing on /0—N (collectively, the "Discount Bonds"), and the initial offering price to the public, excluding bond houses, brokers or similar persons or organizations acting in the capacity of underwriters or wholesalers, at which price a substantial amount of the Discount Bonds of the same maturity and, if applicable, interest rate, was sold is "original issue discount." Original issue discount will accrue over the term of the Discount Bonds at a constant interest rate compounded periodically. A purchaser who acquires the Discount 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 or she holds the Discount Bonds, and will increase his or her adjusted basis in the Discount Bonds by the amount of such accruing discount for purposes of determining taxable gain or loss on the sale or disposition of the Discount Bonds. The federal income tax consequences of the purchase, ownership and redemption, sale or other disposition of the Discount Bonds which are not purchased in the initial offering at the initial offering price may be determined according to rules which differ from those above. Bondholders of the Discount Bonds should consult their own tax advisors with respect to the precise determination for federal income tax purposes of interest accrued upon sale, redemption or other disposition ofthe Discount Bonds and with respect to the state and local tax consequences of owning and disposing of the Discount Bonds.] D [Tax Treatment of Bond Premium The difference between the principal amount of the Series 2018 Bonds maturing on (collectively, the "Premium Bonds"), and the initial offering price to the public (excluding bond houses, brokers or similar persons or organizations acting in the capacity of underwriters or wholesalers) at which price a substantial amount of such Premium Bonds of the same maturity and, if applicable, interest rate, was sold constitutes to an initial purchaser amortizable bond premium which is not deductible from gross income for federal income tax purposes. The amount of amortizable bond premium for a taxable year is determined actuarially on a constant interest rate basis over the term of each of the Premium Bonds, which ends on the earlier of the maturity or call date for each of the Premium Bonds which minimizes the yield on such Premium Bonds to the purchaser. For purposes of determining gain or loss on the sale or other disposition of a Premium Bond, an initial purchaser who acquires such obligation in the initial �t offering is required to decrease such purchaser's adjusted basis in such Premium Bond annually by the amount of amortizable bond premium for the taxable year. The amortization of bond premium may be taken into account as a reduction in the amount of tax-exempt income for purposes of determining various other tax consequences of owning 27 44890899,6 such Premium Bonds. Bondholders of the Premium Bonds are advised that they should consult with their own tax advisors with respect to the state and local tax consequences of owning such Premium Bonds.] RATINGS S&P Global Ratings, Moody's Investors Service, Inc., and Fitch Ratings, Inc., respectively, have assigned ratings of "AA" (stable outlook), "Aa3," and "AA-" (stable outlook), respectively, to the Series 2018 Bonds. The ratings reflect only the views of said rating agencies and an explanation of the ratings may be obtained only from said rating agencies. There is no assurance that such ratings will continue for any given period of time or that they will not be lowered or withdrawn entirely by the rating agencies, or any ofthem, if in their judgment, circumstances so warrant. A downward change in or withdrawal of any of such ratings, may have an adverse effect on the market price of the Series 2018 Bonds. An explanation of the significance of the ratings can be received from the rating agencies, at the following addresses: Standard & Poor's, 55 Water Street, 38th Floor, New York, New York 10041, Moody's Investors Service, Inc., 7 World Trade Center, 250 Greenwich Street, New York, New York 10007, and Fitch Ratings, 33 Whitehall Street, New York, New York 10004. FINANCIAL ADVISOR The City has retained Larson Consulting Services, LLC, Orlando, Florida, as Financial Advisor (the "Financial Advisor") in connection with preparation of the City's plan of financing and with respect to the authorization and issuance of the Series 2018 Bonds. The Financial Advisor is not obligated to undertake and has not undertaken to make, an independent verification or to assume responsibility for the accuracy, completeness or fairness of the information contained in the Official Statement. The Financial Advisor is an independent SEC and MSRB registered financial advisory and consulting organization and is not engaged in the business ofunderwriting, marketing or trading of municipal securities or any other negotiable instruments. FINANCIAL STATEMENTS The Audited Basic Financial Statements of the City for the Fiscal Year ended September 30, 2017, and report thereon of RMS US LLP (the "Independent Auditor") are attached hereto as "APPENDIX B - Audited Basic Financial Statements of the City for the Fiscal Year Ended September 30, 2017." Such statements speak only as of September 30, 2017 and have been included in this Official Statement as public documents and the consent of the Independent Auditor to include such documents herein was not requested. The independent Auditor, has not been engaged to perform, and has not performed, since the date of its report included herein, any procedures on the financial statements addressed in that report. The Independent Auditor also has not performed any procedures relating to this Official Statement. UNDERWRITING The Series 2018 Bonds will be purchased by Stifel, Nicolaus & Company, Incorporated (the "Representative"), acting on behalf of itself and as representative of RBC Capital Markets, LLC and UBS Financial Services Inc. (the "Underwriters") at an aggregate purchase price of$ (which includes a net original issue premium of and Underwriters' discount of $ The Underwriters' obligations are subject to certain conditions precedent, and they will be obligated to purchase all of the Series 2018 Bonds if any Series 2018 Bonds are purchased. The Series 2018 Bonds may be offered and sold to certain dealers (including dealers depositing such Series 2018 Bonds into investment trusts) at prices lower than such public offering prices, and such public offering prices may be changed, from time to time, by the Underwriters. The Underwriters and their respective affiliates are full -service financial institutions engaged in various activities that may include securities trading, commercial and investment banking, municipal advisory, brokerage, and asset management. In the ordinary course of business, the Underwriters and their respective affiliates may actively trade debt and, if applicable, equity securities (or related derivative securities) and provide financial instruments (which may include bank loans, credit support or interest rate swaps). The Underwriters and their respective affiliates may engage in transactions for their own accounts involving the securities and instruments made the subject of this securities offering or other offering of the City. The Underwriters and their respective affiliates may make a market in credit default swaps with respect to municipal securities in the future. The Underwriters and their respective affiliates may also communicate independent 28 44890899;6 n investment recommendations, market color or trading ideas and publish independent research views in respect of this securities offering or other offerings of the City. Bond Counsel and Disclosure Counsel may, from time -to -time, serve as counsel to the Underwriters on matters unrelated to the issuance of the Series 2018 Bonds. CONTINGENT FEES The City has retained Bond Counsel, the Financial Advisor and Disclosure Counsel with respect to the authorization, sale, execution and delivery of the Series 2018 Bonds. Payment of the fees of such professionals and a discount to the Underwriters (including the fees of their counsel) are each contingent upon the issuance of the Series 2018 Bonds. ENFORCEABILITY OF REMEDIES The remedies available to the owners of the Series 2018 Bonds upon an event of default under the Resolution are in many respects dependent upon judicial actions which are often subject to discretion and delay. Under existing constitutional and statutory law and judicial decisions, including specifically the Federal Bankruptcy Code, the remedies specified by the Resolution and the Series 2018 Bonds may not be readily available or may be limited. The various legal opinions to be delivered concurrently with the delivery of the Series 2018 Bonds (including Bond Counsel's approving opinion) will be qualified, as to the enforceability of the remedies provided in the various legal instruments, by limitations imposed by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors enacted before or after such delivery. See "APPENDIX C -- Form of Resolution" attached hereto for a description of events of default and remedies. CONTINUING DISCLOSURE The City has covenanted for the benefit of the Holders of the Series 2018 Bonds to provide certain financial information and operating data relating to the City and the Series 2018 Bonds in each year, and to provide notices of the occurrence of certain enumerated material events. The City has agreed to file itself or through its dissemination agent annual fmancial information and operating data and the audited financial statements with each entity authorized and approved by the Securities and Exchange Commission (the "SEC") to act as a repository (each a "Repository") for purposes of complying with Ruie J5c2-12 adopted by the SEC under the Securities Exchange Act of 1934 (the "Rule"). Effective July 1, 2009, the sole Repository is the Municipal Securities Rulemaking Board (the "MSRB"). The City has also agreed to file notices of certain enumerated events, when and if they occur, with the Repository either itself or through its dissemination agent. Currently, the City's dissemination agent is Digital Assurance Certification, L.L.C. ("DAC"), who was first engaged in 2004. With respect to the Series 2018 Bonds, no party other than the City is obligated to provide, nor is expected to provide, any continuing disclosure information with respect to the Rule. The specific nature of the financial information, operating data, and of the type of events which trigger a disclosure obligation, and other details of the undertaking are described in "APPENDIX E - Form of Disclosure Dissemination Agent Agreement" attached hereto. The Disclosure Dissemination Agent Agreement shall be executed by the City prior to the issuance of the Series 2018 Bonds. These covenants have been made in order to assist the Underwriters in complying with the continuing disclosure requirements of the Rule. In the past five years, the City has not failed to timely comply with the provisions of the Rule except that for its Annual Report required to be filed for its Utility System Refunding Revenue Bonds Series 2016A and 2016B (Taxable) for the fiscal year ended September 30, 2016 included information regarding the Ten Largest Water and Sewer Service Customers for Fiscal Year 2015 rather than 2016 as required. Such failure has been cured as of the date hereof. 29 44890899,E n ACCURACY AND COMPLETENESS OF OFFICIAL STATEMENT The references, excerpts, and summaries of all documents, statutes, and information concerning the City and certain reports and statistical data referred to herein do not purport to be complete, comprehensive and definitive and each such summary and reference is qualified in its entirety by reforence to each such document for full and cJmplete statements of all matters of fact relating to the Series 2018 Bonds, the security for the payment of the Series 2018 Bonds and the rights and obligations of the owners thereof and to each such statute, report or instrument. 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 2018 Bonds. The appendices attached hereto are integral parts of this Official Statement and must be read in their entirety together with all foregoing statements. [Remainder of page intentionally left blank] 44890899,6 30 n AUTHORIZATION OF OFFICIAL STATEMENT The execution and delivery of this Official Statement has been duly authorized and approved by the City. At the time of delivery of the Series 2018 Bonds, the City will furnish a certificate substantially to the effect that nothing has come to their attention which would leadthem to believe that the Official Statement (other than information herein related to DTC, the book -entry only system of registration and the information contained under the caption "TAX MATTERS" as to which no opinion shall be expressed), as of its date and as of the date of delivery of the Series 2018 Bonds, contains an untrue statement of a material fact or omits to state a material fact which should be included therein for the purposes for which the Official Statement is intended to be used, or which is necessary to make the statements contained therein, in the light of the circumstances under which they were made, pot misleading. CITY OF TAMARAC, FLORIDA By = — — — — — — — — — — — — — — — — — — Mayor By = — — — — — — — — — — — — — — — — — — City Manager By = — — — — — — — — — — — — — — — — — — Director of Financial Services 31 44890899,6 APPENDIX A General Information Concerning the City 44890899,6 APPENDIXB Audited Basic Financial Statements of the City for the Fiscal Year Ended September 30, 2017 44890899,6 APPENDIXC Form of Resolution 44890899,6 APPENDIXD Form of Bond Counsel Opinion .^ 44890899,6 n APPENDIXE Form of Disclosure Dissemination Agent Agreement 44890899,E