HomeMy WebLinkAboutCity of Tamarac Resolution R-99-192Temp. Reso. #8672
July 08, 1999
RESOLUTION NO. 99- 14 ;,)-
A RESOLUTION OF THE CITY OF TAMARAC, FLORIDA AMENDING AND
SUPPLEMENTING RESOLUTION NO.98-156 -ELATING TO THE CITY'S REVENUE BONDS;
FIXING CERTAIN TERMS AND DETAI;:.S OF SUCH BONDS_ AUTHORIZING A
NEGOTIATED SALE OF SUCH BONDS PURS:JANT TO A BOND PURCHASE CONTRACT.
APPROVING THE FORM OF AND AUTHORIZING THE DISTRIBUTION OF A PRELIMINARY
OFFICIAL STATEMENT AND AUTHORIZING THE EXECUTION AND DELIVERY OF A
FINAL OFFICIAL STATEMENT; SELECTING A PAYING AGENT AND REGISTRAR AND
AUTHORIZING THE EXECUTION AND DELIVERY OF AGREEMENTS BETWEEN THE CITY
AND THE BOND REGISTRAR AND PAYING AGENT; RATIFYING THE SELECTION OF
FINANCIAL GUARANTY INSURANCE COMPANY AS BOND INSURER AND PROVIDING
FOR CERTAIN MATTERS IN CONNECTION THEREWITH; AUTHORIZING THE EXECUTION
AND DELIVERY OF A CONTINUING DISCLOSURE CERTIFICATE; AUTHORIZING OTHER
REQUIRED ACTIONS; PROVIDING FOR SEVERABILITY AND AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF TAMARAC.
FLORIDA:
SECTION 1. AUTHORITY FOR THIS RESOLUTION. The City of Tamarac. Florida (the
"City") is authorized to adopt this resolution (the "Resolution") under the authority granted by the
provisions of Chapter 166, F'',--Aa Statutes, as amended, and other applicable provisions of law. In
consideration of the acceptance of the Series 1999 Bonds (herein defined) by those who shall own the
same from time to time, this Resolution shall be deemed to be and shall constitute a contract between
the City and such Bondholders.
SECTION 2. FINDINGS. It is hereby found and determined that:
A. Pursuant to Resolution No. 98-156 adopted by the Cite Corn..mission on
May 27, 1998 (as supplemented and amended from time to time. the "Bond Resolution"), the City
authorized the issuance of not to exceed $15,000,000 of it revenue bonds in one or more series from
time to time.
B. In furtherance thereof and pursuant to the Bond Resolution. the Citv deems it
in its best inteic.3t to issue the first series of such revenue bonds in the aggregate principal amount of
up to $9,000,000 (the "Series 1999 Bonds") in order to finance portions of the Proiect identified in the
Bond Resolution.
C. Pursuant to Resolution No. 98-157 adopted by the Cite Commission on
May 27, 1998. First Union Capital Markets Corp. (the "Under%%Titer") «-as selected to serve as
underwriter for the Series 1999 Bonds.
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D. All of the provisions, covenants, pledges and conditions in the Bond Resolution
shall be applicable to the Series 1999 Bonds herein authorized and such Series 1999 Bonds shall
constitute "Bonds" within the meaning of the Bond Resolution.
E. The Bond Resolution provides that all Bonds shall be dated, shall mature on
such dates and in such amounts, shall bear such rates of interest, shall be payable in such places and
shall be subject to such redemption provisions, among other matters, as shall be determined by
resolution adopted by the City and it is now appropriate to determine such terms and details.
F. All capitalized terms used herein and not otherwise defined herein shall have
the meaning ascribed thereto in the Bond Resolution, unless otherwise provided or unless the context
otherwise clearly requires. To the extent necessary to effectuate the terms and conditions hereof, the
Bond Resolution is hereby incorporated herein by reference.
SECTION 3. DESCRIPTION OF THE SERIES 1999 BONDS. There is authorized to be
issued a Series of Bonds designated as "City of Tamarac, Florida Sales Tax Revenue Bonds, Series
1999" which shall constitute a portion of the up to $15,000,000 "Series 1998 Bonds" authorized to be
issued pursuant to the Bond Resolution. In addition to the terms contained in the Bond Resolution,
the Series 1999 Bonds (a) shall be issued as Serial Bonds or Term Bonds or a combination thereof,
in denominations of $5000 or any integral multiple thereof, (b) shall have a final maturity date of not
exceeding 20 years from the date of issuance, (c) shall bear interest at a true interest cost not exceeding
5.75% per annum, (d) if redeemable, shall be redeemable at redemption prices not exceeding 102%
of the principal amount thereof, and (e) shall be dated and shall have such other characteristics as shall
be set forth in a Bond Purchase Contract between the City and the Underwriter in substantially the
form attached hereto as Exhibit A (the "Bond Purchase Contract"). The Mayor or Vice Mayor is
authorized to approve the final terms of the Series 1999 Bonds, which terms shall be consistent with
the parameters set forth above without any further authorization of the City Commission. and such
terms shall be set forth in the Bond Purchase Contract.
A book -entry -only system of registration is hereby authorized for the Series 1999 Bonds. So
long as the City shall maintain a book -entry -only system with respect to the Series 1999 Bonds. the
following provisions shall apply:
The Series 1999 Bonds shall initially be issued in the name of Cede & Co. as nominee for the
Depository Trust Company ("DTC"), which will act as securities depository for the Series 1999 Bonds
and so long as the Series 1999 Bonds are held in book -entry -only form, Cede & Co. shall be
considered the registered owner for all purposes hereof and of the Bond Resolution. On original issue,
the Series 1999 Bonds shall be deposited with DTC, which shall be responsible for maintaining a
book -entry -only system for recording the ownership interests of its participants ("DTC Participants"),
and other institutions who clear through or maintain a custodial relationship with DTC Participants
("Indirect Participants"), The DTC Participants and Indirect Participants will be responsible for
maintaining records with respect to the beneficial ownership interests of individual purchasers of the
Series 1999 Bonds ("Beneficial Owners").
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Principal and interest prior to and at maturity shall be payable directly to Cede & Co. in care of
DTC. Disbursal of such amounts to DTC Participants shall be the responsibility of DTC. Payments
to Indirect Participants shall be the responsibility of DTC Participants, and payments by DTC
Participants and Indirect Participants to Beneficial Owners shall be the responsibility of DTC
participants and Indirect Participants and not of DTC, the Paying Agent or the City.
The Series 1999 Bonds shall initially be issued in the form of one fully registered bond for each
maturity. Individuals may purchase beneficial interests in the amount of $5,000 or integral multiples
thereof in book -entry -only form, without certificated Series 1999 Bonds, through the DTC participants
and Indirect Participants.
DURING THE PERIOD FOR WHICH CEDE & CO. IS REGISTERED OWNER OF THE
Series 1999 Bonds, ANY NOTICE TO BE PROVIDED TO ANY REGISTERED OWNER WILL
BE PROVIDED TO CEDE & CO. DTC SHALL BE RESPONSIBLE FOR NOTICE TO DTC
PARTICIPANTS, AND DTC PARTICIPANTS SHALL BE RESPONSIBLE FOR NOTICE TO
INDIRECT PARTICIPANTS AND DTC. PARTICIPANTS AND INDIRECT PARTICIPANTS
SHALL BE RESPONSIBLE FOR NOTICE TO BENEFICIAL OWNERS.
The City has entered into a customary letter of representations with DTC providing for such a
book -entry -only system (the "DTC Agreement"). Such agreement may be terminated at any time by
either DTC or the City. In the event of such termination, the City shall select another securities
depository or discontinue such book -entry -only system. If the City does not replace DTC, the
Registrar (as hereinafter defined) will register and deliver to the Beneficial Owners replacement Series
1999 Bonds in the form of fully registered Series 1999 Bonds in denominations of $5,000 or integral
multiples thereof, in accordance with instructions from Cede & Co.
SECTION 4. REDEMPTION PROVISIONS. The Series 1999 Bonds shall be subject to
redemption in such amounts and at such times as set forth in the final form of the Bond Purchase
Contract.
At least thirty (30) days before the redemption date, a notice of any such redemption, either in
whole or in part, shall be mailed, first class mail, postage prepaid. to all registered owners of Series
1999 Bonds to be redeemed at their addresses as they appear on the registration books. To supplement
such notice to the registered owners, the notice of redemption may also be mailed by overnight mail
to at least two national depositories and one national wire service used to distribute information
relating to municipal bonds, at least thirty-five (35) days prior to the redemption date. Failure to mail
any redemption notice to any Bondholder or any depositories and wire services. or any defect in any
notice so mailed, shall not affect the validity of the proceedings for the redemption of the Series 1999
Bonds of any other Holder. Each such notice shall set forth the date fixed for redemption. the
redemption price to be paid and, if less than all of the Series 1999 Bonds then outstanding shall be
called for redemption, the numbers of such Series 1999 Bonds. Each notice of redemption mailed to
a registered owner of a Bond to be redeemed shall, if less than the entire principal amount thereof is
to be redeemed, also state the principal amount thereof to be redeemed and that such Bond must be
OR 169642;1 3
surrendered to the Bond Registrar in exchange for the payment of the principal amount thereof to be
redeemed and the issuance of a new Series 1999 Bond or Series 1999 Bonds equaling in principal
amount that portion of the principal sum not to be redeemed of the Series 1999 Bonds to be
surrendered. Notice having been given in the manner provided above, the Series 1999 Bonds or
portions of Series 1999 Bonds so called for redemption shall, on the redemption date designated in
such notice, become and be due and payable at the redemption price provided for redemption for such
Series 1999 Bonds or portions of Series 1999 Bonds on such date. On the date so designated for
redemption, interest on the Series 1999 Bonds or portions of Series 1999 Bonds so called for
redemption shall cease to accrue, such Series 1999 Bonds and portions of Series 1999 Bonds shall
cease to be entitled to any lien, benefit or security under the Bond Resolution and shall be deemed paid
under the Bond Resolution, and the registered owners of such Series 1999 Bonds or portions of Series
1999 Bonds shall have no rights except to receive payment of the redemption price.
Any notice of redemption shall explicitly state that the proposed redemption is conditioned on
there being on deposit in the Bond Redemption Account on the redemption date sufficient money to
pay the full redemption price of the Series 1999 Bonds to be redeemed unless the full redemption price
of the Series 1999 Bonds to be redeemed is on deposit in the Bond Redemption Account on the date
such notice is sent.
SECTION 5, NEGOTIATED SALE OF THE SERIES 1999 BONDS. It is hereby found,
ascertained, determined and declared by the City that a negotiated sale of the Series 1999 Bonds is in
the best interest of the City in order to more effectively control the timing of the issuance of the Bonds
and do to the size of the issue and the fact that the City has not previously issued revenue bonds in the
public markets except for those payable from its water and sewer system. The negotiated sale of the
Series 1999 Bonds to First Union Capital Markets Corp. (the "Underwriter") pursuant to the terms of
a Bond Purchase Contract substantially in the form attached hereto as Exhibit A is hereby authorized
and approved and the Mayor or Vice Mayor is hereby authorized and directed to execute such Bond
Purchase Contract when completed and to deliver the same to the Underwriter. The execution and
delivery of the Bond Purchase Contract by the Mayor or Vice -Mayor of the City shall constitute
conclusive evidence of the approval thereof.
SECTION 6. PRELIMINARY AND FINAL OFFICIAL STATEMENTS. The Preliminary
Official Statement relating to the Series 1999 Bonds, in substantially the form submitted at this
meeting and attached hereto as Exhibit C, is hereby approved with respect to the information therein
contained. The distribution and use of the Preliminary Official Statement in connection with the
public offering for sale of the Series 1999 Bonds is hereby authorized and ratified. The execution by
the Director of Finance of the City of a certificate deeming the Preliminary Official Statement final
within the meaning of Rule 15c2-12 of the Securities Exchange Act of 1934 is hereby authorized. The
Director of Finance is hereby authorized to have prepared and the Mayor or Vice -Mayor and the
Director of Finance of the City are hereby authorized to execute a final Official Statement. and. upon
such execution, to deliver the same to the Underwriter for use by it in connection with the sale and
distribution of the Series 1999 Bonds. The Official Statement shall be substantially in the form of the
Preliminary Official Statement, with such changes as shall be approved by the Mayor or Vice -Mayor
OR 169642:1 4
or Director of Finance as necessary to confirm the details of the Series 1999 Bonds and such other
insertions, modifications and changes as may be approved by the Vice -Mayor or Director of Finance
of the City. The execution and delivery of the Official Statement by the Mayor or Vice -Mayor and
Director of Finance of the City shall constitute conclusive evidence of the approval thereof. The City
hereby authorizes the Official Statement and the information contained therein to be used in
connection with the offering and sale of the Series 1999 Bonds.
SECTION 7. APPOINTMENT OF BOND REGISTRAR AND PAYING AGENT. The Bank
of New York is hereby designated as the Paying Agent and Registrar for the Series 1999 Bonds.
Simultaneously with the delivery of the Series 1999 Bonds to the purchaser thereof, the City shall
enter into a Registrar and Paying Agent Agreement in substantially the form attached hereto as
Exhibit D. The Mayor or Vice -Mayor of the City are hereby authorized to enter into any agreements
with such Bond Registrar and Paying Agent which may be necessary to reflect the obligation of such
Bond Registrar and Paying Agent to accept and perform the respective duties imposed upon each, and
to effectuate the transactions contemplated, by this Resolution and the Bond Resolution.
SECTION S. INSURANCE MATTERS. The execution by the City Manager of a
commitment from Financial Guaranty Insurance Company, a New York stock insurance company (the
"Municipal Bond Insurer") to issue its Municipal Bond New Issue Insurance Policy (the "Policy") to
insure the payment when due on the principal of and interest on the Series 1999 Bonds as provided
in the Policy is hereby ratified and approved. The City hereby authorizes the Series 1999 Bonds to
be insured by the Policy to be issued by the Municipal Bond Insurer concurrently with the delivery
of the Series 1999 Bonds and further authorizes the application of proceeds of the Series 1999 Bonds
to payment of the premium for the Policy. While the Series 1999 Bonds remain insured by the Policy
and the Municipal Bond Insurer is not in default thereunder, the following shall apply to the Series
1999 Bonds, notwithstanding anything to the contrary set forth in the Bond Resolution:
A. General.
(i) Any provision of the Bond Resolution or this Resolution expressly recognizing
or granting rights in or to the Municipal Bond Insurer may not be amended in any manner
which affects the rights of the Municipal Bond Insurer thereunder or hereunder without the
prior written consent of the Municipal Bond Insurer.
(ii) The consent of the Municipal Bond Insurer shall be required in addition to any
required consent of the holders of the Bonds for the following purposes: (a) execution and
delivery of any supplemental resolution or any amendment, change or modification to the
Bond Resolution or this Resolution; (b) removal of the Paying Agent and selection and
appointment of any successor paying agent; and (c) limitation or approval of any action not
described in (a) or (b) which require consent of the holders of the Bonds. Any rating agency
rating the Series 1999 Bonds must receive notice of each amendment to the Bond Resolution
or this Resolution at least 15 days in advance of its execution or adoption. The Municipal
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Bond Insurer shall be provided with a full transcript of all proceedings relating to such
amendment or supplement.
(iii) Any reorganization or liquidation plan with respect to the City must be
acceptable to the Municipal Bond Insurer. In the event of any reorganization or liquidation,
the Municipal Bond Insurer shall have the right to vote on behalf of all holders of the Series
1999 Bonds.
(iv) The City will permit the Municipal Bond Insurer to discuss the affairs, finances
and accounts of the City or any information Municipal Bond Insurer may reasonably request
regarding the security for the Bonds with appropriate officers of the City. The City will permit
the Municipal Bond Insurer to have access to make copies of all books and records relating
to the Bonds at any reasonable time.
OR 169642;1
(v) The Municipal Bond Insurer shall have the right to direct an accounting of the
Pledged Revenues at the City's expense, and the City's failure to comply with such direction
within thirty (30) days after receipt of written notice of the direction from the Municipal Bond
Insurer shall be deemed a default under the Bond Resolution or this Resolution; provided,
however, that if compliance cannot occur within such period, then such period will be
extended as long as compliance is begun within such period and diligently pursued, but only
if such extension would not materially adversely affect the interests of any registered owner
of the Series 1999 Bonds.
(vi) No resignation or removal of the Paying Agent or Registrar shall be effective
until a successor has been appointed and has accepted the duties of Paying Agent or Registrar
(as applicable). The Municipal Bond Insurer shall be provided with written notice of the
resignation or removal of the Paying Agent or Registrar and the appointment of any successor
thereto.
(vii) Except as provided in subsection (viii) below, for purposes of calculating the
Reserve Requirement, Additional Parity Bonds bearing interest at a variable rate shall be
assumed to bear interest at (A) if interest on the indebtedness is excludable from gross income
under the applicable provisions of the Internal Revenue Code, the most recently published
Bond Buyer "Revenue Bond Index" (or comparable index if no longer published) plus 50 basis
points, or (B) if interest is not so excludable, the interest rate on direct U.S. Treasury
Obligations with comparable maturities plus 50 basis points. For all other purposes, including
the additional bonds test, variable rate indebtedness shall be assumed to bear interest at the
maximum rate permitted under the governing documents.
(viii) For purposes of calculating the Reserve Requirement and compliance with
other covenants set forth in the Bond Resolution, the interest rate on Additional Parity Bonds
bearing interest at a variable rate may be assumed to be the synthetic fixed rate established
rel
under an interest rate swap so long as the City complies with the Swap Provider Guidelines
as set forth in F,2ihibit B hereto.
B. Notices and information to be given to the Municipal Bond Insurer.
(1) The City shall furnish to the Municipal Bond Insurer:
(a) Within 120 days after the end of each Fiscal Year, the budget for the
succeeding year, annual audited financial statements, a statement of the amount on
deposit in the Debt Service Revenue Fund as of the last valuation, and, if not presented
in the audited financial statements, a statement of the amount of Fledged Revenues
received during such Fiscal Year;
(b) The official statement or other disclosure document, if any, prepared
in connection with the issuance of any debt, whether or not on parity with the Series
1999 Bonds;
(c) Notice of any drawing upon or deficiency due to market fluctuations
in the amount, if any, on deposit in the Debt Service Reserve Account;
(d) Notice of the redemption, other than mandatory sinking fund
redemption, of any Series 1999 Bonds, or any advanced refunding of Series 1999
Bonds, specifying the principal amount, maturities and CUSIP numbers thereof,
(e) For all purposes of this Resolution and the Bond Resolution, the
address for sending notices to the Municipal Bond Insurer and the Fiscal Agent (as
defined below) are respectively as follows: Financial Guaranty Insurance Company,
115 Broadway, New York, New York 10006, Attention: Risk Management. and State
Street Bank and Trust Company, N.A., 61 Broadway, New York, New York 10006,
Attention: Corporate Trust Department; and
(f) Such additional information it may reasonably request.
(ii) The City shall notify the Municipal Bond Insurer of any failure of the City to
provide relevant notices or certificates required under the Bond Resolution or this resolution.
C. Default -Related Provisions.
(i) Upon a payment default, the City shall, at the direction of the Municipal Bond
Insurer, apply available funds held in the Construction Fund to pay the principal of or interest
on the Series 1999 Bonds.
OR 169642:1
(ii) Payments made under the Policy shall be disregarded when determining
whether a payment default has occurred or whether a payment on the Series 1999 Bonds has
been made.
(iii) Any acceleration of the Bonds or any annulment thereof shall be subject to the
prior written consent of the Municipal Bond Insurer.
(iv) The Paying Agent and the City shall provide the Municipal Bond Insurer
immediate notice of any payment default and notice of any other default known to the Paying
Agent or the City (as applicable) within 30 days of knowledge thereof.
(v) For purposes of all provisions in the Bond Resolution and in this Resolution
relating to events of default and remedies, except the giving of notice of default to
Bondholders, the Municipal Bond Insurer shall be deemed to be the sole holder of Series 1999
Bonds.
(vi) The Municipal Bond Insurer is entitled to (A) notify the City, the Paying Agent
or any applicable receiver of an event of default, and (B) request a receiver to intervene in
judicial proceedings that affect the Series 1999 Bonds or the security therefor. The Paying
Agent or receiver is required to accept notice of default from the Municipal Bond Insurer.
D. Payment Procedures Pursuant to the Policy. The City and Paying Agent shall comply
with the following:
(i) If, on the business day preceding any interest payment date for the Series 1999
Bonds there is not on deposit with the Paying Agent sufficient moneys available to pay all
principal of and interest on the Series 1999 Bonds due on such date, the Paying Agent shall
immediately notify the Municipal Bond Insurer and State Street Bank and Trust Company,
N.A., New York, New York or its successor as its Fiscal Agent (the "Fiscal Agent") of the
amount of such deficiency. If by said interest payment date, the Issuer has not provided the
amount of such deficiency, the Paying Agent shall simultaneously make available to the
Municipal Bond Insurer and to the Fiscal Agent the registration books for the Series 1999
Bonds maintained by the Paying Agent. In addition:
OR 169642:I
(a) The Paying Agent shall provide the Municipal Bond Insurer with a list
of the Bondholders entitled to receive principal or interest payments from the
Municipal Bond Insurer under the terms of the Bond Insurance Policy and shall make
arrangements for the Municipal Bond Insurer and its Fiscal Agent (1) to mail checks
or drafts to Bondholders entitled to receive full or partial interest payments from the
Municipal Bond Insurer and (2) to pay principal of the Series 1999 Bonds surrendered
to the Fiscal Agent by the Bondholders entitled to receive full or partial principal
payments from the Municipal Bond Insurer; and
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(b) The Paying Agent shall, at the time it makes the registration books
available to the Municipal Bond Insurer pursuant to (A) above, notify Bondholders
entitled to receive the payment of principal of or interest on the Series 1999 Bonds
from the Municipal Bond Insurer (1) as to the fact of such entitlement, (2) that the
Municipal Bond Insurer will remit to them all or part of the interest payments coming
due subject to the terms of the Bond Insurance Policy, (3) that, except as provided in
paragraph (ii) below, in the event that any Bondholder is entitled to receive full
payment of principal from the Municipal Bond Insurer, such Bondholder must tender
his Bond with the instrument of transfer in the form provided on the Bond executed
in the name of the Municipal Bond Insurer, and (4) that, except as provided in
paragraph (ii) below, in the event that such Bondholder is entitled to receive partial
payment of principal from the Municipal Bond Insurer, such Bondholder must tender
his Bond for payment first to the Paying Agent, which shall note on such Bond that
portion of principal paid by the Paying Agent, and then, with an acceptable form of
assignment executed in the name of the Municipal Bond Insurer, to the Fiscal Agent,
which will then pay the unpaid portion of principal to the Bondholder subject to the
terms of the Bond Insurance Policy.
(ii) In the event that the Paying Agent has notice that any payment of principal of
or interest on a Bond has been recovered from a Bondholder pursuant to the United States
Bankruptcy Code by a trustee in bankruptcy in accordance with the final, nonappealable order
of a court having competent jurisdiction, the Paying Agent shall, at the time it provides notice
to the Municipal Bond Insurer, notify all Bondholders that in the event that any Bondholder's
payment is so recovered, such Bondholder will be entitled to payment from the Municipal
Bond Insurer to the extent of such recovery, and the Paying Agent shall furnish to the
Municipal Bond Insurer its records evidencing the payments of principal of and interest on the
Series 1999 Bonds which have been made by the Paying Agent and subsequently recovered
from Bondholders, and the date on which such payments were made.
(iii) The Municipal Bond Insurer shall, to the extent it makes payment of principal
of or interest on the Series 1999 Bonds, become subrogated to the rights of the recipients of
such payments in accordance with the terms of the Bond Insurance Policy and, to evidence
such subrogation, (A) in the case of subrogation as to claims for past due interest, the Paying
Agent shall note the Municipal Bond Insurer's rights as subrogee on the registration books
maintained by the Paying Agent upon receipt from the Municipal Bond Insurer of proof of the
payment of interest thereon to the Bondholders of such Series 1999 Bonds and (B) in the case
of subrogation as to claims for past due principal, the Paying Agent shall note the Municipal
Bond Insurer's rights as subrogee on the registration books for the Series 1999 Bonds
maintained by the Paying Agent upon receipt of proof of the payment of principal thereof to
the Bondholders of such Series 1999 Bonds. Notwithstanding anything in this Resolution.
the Bond Resolution or the Series 1999 Bonds to the contrary, the Paying Agent shall make
payment of such past due interest and past due principal directly to the Municipal Bond
Insurer to the extent that the Municipal Bond Insurer is a subrogee with respect thereto.
OR 169642/1 9
SECTION 9. DEBT SERVICE RESERVE ACCOUNT POLICY. The execution by the City
Manager of a commitment from Financial Guaranty Insurance Company, a New York stock insurance
company (the "Municipal Bond Insurer") to issue its municipal bond debt service reserve policy
('Reserve Policy") to satisfy the reserve requirement with respect to the Series 1999 Bonds is hereby
ratified and approved, and the use of proceeds of the Series 1999 Bonds to pay the premium for the
Reserve Policy is hereby authorized and approved. The Mayor or Vice Mayor is authorized to execute
and deliver a Debt Service Reserve Fund Policy Agreement (the "Agreement") between the City and
the Municipal Bond Insurer in substantially the form attached as Exhibit E hereto with such changes
as approved by the Mayor or Vice Mayor, such approval to be conclusively presumed by execution
thereof The terms of the Debt Service Reserve Fund Policy Agreement are hereby incorporated by
reference and made a part hereof. While the Reserve Policy is in effect and the Municipal Bond
Insurer is not in default thereunder, the following provisions (in addition to those set forth in the
Agreement) shall apply notwithstanding anything to the contrary set forth in the Bond Resolution:
A. The Paying Agent shall be the custodian of the Reserve Policy and act as fiduciary for
the Bondholders in respect thereof.
B. The Municipal Bond Insurance Policy shall at all times be issued by Financial
Guaranty Insurance Company as security for payment of principal and interest on the Series 1999
Bonds.
SECTION 10. AMENDMENT TO SECTION 1.1 OF BOND RESOLUTION. The definition
of "Permitted Investments" in Section 1.1 of the Bond Resolution is hereby amended to read as
follows:
"'Permitted Investments' shall mean, to the extent permitted by law, and to the extent consistent
with the investment policies of the City in effect from time to time:
(i) Direct obligations of the United States of America and securities fully and
unconditionally guaranteed as to the timely payment of principal and interest by the United
States of America, provided, that the full faith and credit of the United States of America must
be pledged to any such direct obligation or guarantee ("Direct Obligations").
(ii) Direct obligations and fully guaranteed certificates of beneficial interest of the
Export -Import Bank of the United States; consolidated debt obligations and letter of credit -
backed issues of the Federal Home Loan Banks; participation certificates and senior debt
obligations of the Federal Home Loan Mortgage Corporation ("FHLMCs"); debentures of the
Federal Housing Administration; mortgage -backed securities (except stripped mortgage
securities which are valued greater than par on the portion of unpaid principal) and senior debt
obligations of the Federal National Mortgage Association ("FNMAs" ); participation
certificates of the General Services Administration; guaranteed mortgage -backed securities
and guaranteed participation certificates of the Government National Mortgage Association
OR 1 b9b42;1 10
("GNMAs"); guaranteed participation certificates and guaranteed pool certificates of the Small
Business Administration; debt obligations and letter of credit -backed issues of the Student
Loan Marketing Association; local authority bonds of the U.S. Department of Housing &
Urban Development; guaranteed Title XI financings of the U.S. Maritime Administration;
guaranteed transit bonds of the Washington Metropolitan Area Transit Authority; Resolution
Funding Corporation securities.
(iii) Direct obligations of any state of the United States of America or any
subdivision or agency thereof whose unsecured, uninsured and unguaranteed general
obligation debt is rated, at the time of purchase, "A" or better by Moody's Investors Service
and "A" or better by Standard & Poor's Corporation, or any obligation fully and
unconditionally guaranteed by any state, subdivision or agency whose unsecured, uninsured
and unguaranteed general obligation debt is rated, at the time of purchase, "A" or better by
Moody's Investors Service and "A" or better by Standard & Poor's Corporation.
(iv) Commercial paper (having original maturities of not more than 270 days) rated.
at the time of purchase, "P-1" by Moody's Investors Service and "A-1" or better by Standard
& Poor's Corporation.
(v) Federal funds, unsecured certificates of deposit, time deposits or bankers
acceptances (in each case having maturities of not more than 365 days) of any domestic bank
including a branch office of a foreign bank which branch office is located in the United States,
provided legal opinions are received to the effect that full and timely payment of such deposit
or similar obligation is enforceable against the principal office or any branch of such bank,
which, at the time of purchase, has a short-term "Bank Deposit" rating of "P-1" by Moody's
Investors Service and a "Short -Term CD" rating of "A-1" or better by Standard & Poor's
Corporation.
(vi) Deposits of any bank or savings and loan association which has combined
capital, surplus and undivided profits of not less than $3 million, provided such deposits are
continuously and fully insured by the Bank Insurance Fund or the Savings Association
Insurance Fund of the Federal Deposit Insurance Corporation.
(vii) Investments in money-market funds rated "AAAm" or "AAAm-G" by Standard
& Poor's Corporation.
(viii) Repurchase agreements collateralized by Direct Obligations, GNMAs, FNMAs
or FHLMCs with any registered broker/dealer subject to the Securities Investors' Protection
Corporation jurisdiction or any commercial bank insured by the FDIC, if such broker/dealer
or bank has an uninsured, unsecured and unguaranteed obligation rated "P-1" or "A3" or better
by Moody's Investors Service, and "A-1" or "A-" or better by Standard & Poor's Corporation.
provided:
OR 169642 J
1
I
(a) A master repurchase agreement or specific written repurchase
agreement governs the transaction;
(b) The securities are held free and clear of any lien by the Trustee or an
independent third party acting solely as agent ("Agent") for the Trustee, and such third
party is (i) a Federal Reserve Bank, (ii) a bank which is a member of the Federal
Deposit Insurance Corporation and which has combined capital, surplus and undivided
profits of not less than $50 million or (iii) a bank approved in writing for such purpose
by Financial Guaranty Insurance Company, and the Trustee shall have received written
confirmation from such third party that it holds such securities, free and clear of any
lien, as agent for the Trustee;
(c) A perfected first security interest under the Uniform Commercial Code.
or book entry procedures prescribed at 31 C.F.R. 305.1 et seq. or 31 C.F.R. 350.0 et
seq. in such securities is created for the benefit of the Trustee;
(d) The repurchase agreement has a term of 180 days or less, and the
Trustee or the Agent will value the collateral securities no less frequently than weekly
and will liquidate the collateral securities if any deficiency in the required collateral
percentage is not restored within two business days of such valuation; and
(e) The fair market value of the securities in relation to the amount of the
repurchase obligation, including principal and interest, is equal to at least 103%.
(ix) Investment agreements, the issuer, form and substance of which are specifically
approved by the Bond Insurer."
SECTION 11. AMENDMENT OF SECTION 3.4 OF BOND RESOLUTION. Section 3.4
of the Bond Resolution is hereby amended as follows:
(i) The terms "Pledged Revenue Fund" and "Revenue Fund" as defined in
Section 3.4(B) and as used in the Bond Resolution are amended to read "Pledged Revenue
Account" and "Revenue Account," respectively.
(ii) All references in Section 3.4(C) to "the fifteenth (15th) day" are amended to
read "the twenty-fifth (25th) day".
(iii) Section 3.4(C)(iii) of the Bond Resolution is amended by adding the following
paragraph at the end of such Section:
"If a disbursement is made from a Reserve Account Insurance Policy or a Reserve
Account Letter of Credit (each a "Reserve Account Instrument"), the City shall reinstate the
maximum limits of such Reserve Account Instrument immediately following such disbursement
OR 169642;1
12
from moneys paid into the Debt Service Reserve Account in accordance with the foregoing
provisions of this Section 3.4(C)(iii). In addition, and in the same manner, the City shall
reimburse the issuer of the Reserve Account Instrument for all reasonable expenses incurred by
such issuer in connection with the draw upon the Reserve Account Instrument, together with
interest on unpaid amounts as set forth in the Reserve Account Instrument or a related
agreement. The obligations of the City to make payments to the issuer of any Reserve Account
Instrument shall not be a general obligation of the City but shall be payable from Pledged
Revenues in the manner provided herein."
SECTION 12. INTERESTED PARTIES. Nothing in the Bond Resolution or 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 City, the Municipal Bond Insurer, the Paying Agent, and the registered owners
of the Series 1999 Bonds, any right, remedy or claim under or by reason of this Resolution or any
covenants, condition or stipulation thereof, and all covenants, stipulations, promises and agreements
in this Resolution contained by and on behalf of the City shall be for the sole and exclusive benefit
of the City, the Municipal Bond Insurer, the Paying Agent, and the registered owners of the Series
1999 Bonds.
SECTION 13. EVENTS OF DEFAULT. The following events shall each constitute an event
of default under the Bond Resolution and the Series 1999 Bonds:
A. failure to pay the principal of or interest on the Series 1999 Bonds when due;
B. the dissolution or liquidation of the City, or the filing by the City of a voluntary
petition in bankruptcy, or the commission by the City of any act of bankruptcy, or adjudication of the
City as a bankrupt, or assignment by the City for the benefit of its creditors, or appointment of a
receiver for the City, or the entry by the City into an agreement of composition with its creditors, or
the approval by a court of competent jurisdiction of a petition applicable to the City 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 may hereafter be enacted.
C. the City shall default in the due and punctual performance of any of the other
covenants, conditions, agreements and provisions contained in the Series 1999 Bonds or in this
Resolution or the Bond Resolution on the part of the City to be performed, and such default shall
continue for a period of thirty (30) days after written notice from the Paying Agent, the Municipal
Bond Insurer any holder of Bonds.
SECTION 14. CONTINUING DISCLOSURE. The City hereby covenants and agrees that
it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Such
Continuing Disclosure Certificate shall be in substantially the form attached hereto as Exhibit F to be
executed by the City and dated the date of delivery of the Series 1999 Bonds. Notwithstanding any
other provision of this Resolution, failure of the City to comply with the Continuing Disclosure
Certificate will not be considered an event of default; however any Bondholder may take such actions
OR 169642-11 13
as may be necessary and appropriate, including seeking mandate or specific performance by court
order, to cause the City to comply with its obligations under this Section. Bondholders shall not be
entitled to any damages for failure of the City to comply with the terms of the Continuing Disclosure
Certificate.
SECTION 15. DESIGNATION AS BANK QUALIFIED. The City designates the Bonds as
a "qualified tax-exempt obligation" within the meaning of Section 265(b)(3) of the Internal Revenue
Code of 1986, as amended (the "Code"). The City does not reasonably anticipate that the City, any
subordinate entities of the City, and issues of debt that issue "on behalf' of the City, will during
calendar year 1999 have more than $10,000,000 of "tax-exempt" obligations, exclusive of those
obligations described in Section 265(b)(3)(C)(ii) of the Code.
SECTION 16. GENERAL AUTHORITY. The Mayor or Vice -Mayor, the City Manager, the
Director of Finance, the City Attorney and any other proper officials of the City are hereby authorized -
to do all acts and things required of them by this Resolution, the Bond Resolution, the Official
Statement, the Series 1999 Bonds, the DTC Agreement or that may otherwise be desirable or
consistent with accomplishing the full, punctual and complete performance of all the terms, covenants
and agreements contained in any of the foregoing and each member, employee, attorney and officer
of the City is hereby authorized and directed to execute and deliver any and all papers and instruments
and to cause to be done any and all acts and things necessary or proper for carrying out the
transactions contemplated thereby.
SECTION 17. SEVERABILITY AND INVALID PROVISIONS. If any one or more of the
covenants, agreements or provisions herein contained shall be held contrary to any express provision
of law or contrary to the policy of express law, but not expressly prohibited or against public policy,
or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall
be null and void and shall be deemed separable from the remaining covenants, agreements or
provisions and shall in no way affect the validity of the other provisions hereof or of the Series 1999
Bonds.
SECTION 18. BOND RESOLUTION TO CONTINUE IN FORCE. Except as herein
expressly provided as to the Series 1999 Bonds, the Bond Resolution and all the terms and provisions
thereof, are and shall remain in full force and effect.
SECTION 19. EFFECTIVE DATE. This Resolution shall be effective immediately upon
its adoption.
Oft 169642/1
14
PASSED AND ADOPTED the/V day of , 1999.
CITY OF TAMARAC, FLORIDA
Joe eiber, Mayor
I174101 . Iw1
100FCOWSSION
Carol Gold, C.
/AAE
MAYOR
SCHREIBER
City Clerk
omp
DIST is
COMM. PORTNER
I HEREBY CERTIFY that I have
DIST 2:
V/M MISHKIN
p °v d this Resolution as to fo
MST 3:
DIST 4: _.
COMM. SULTANOF
-COMM. ROBERTS
Mitcheil S. Kraft
._. City Attorney
OR169642; I
$8,740,000
CITY OF TAMARAC, FLORIDA
SALES TAX REVENUE BONDS
SERIES 1999
BOND PURCHASE CONTRACT
July 22,1999
Honorable Mayor and Members
of the City Commission
City of Tamarac
7525 N.W. 881h Avenue
Tamarac, Florida 33321-2401
Dear Commissioners:
The undersigned, First Union Capital Markets Corp. (the "Underwriter") hereby
offers to enter into this Bond Purchase Contract (the "Purchase Contract") with the City of
Tamarac, Florida (the "City" or "you") for the purchase by the Underwriter and sale by the
City of all, but not less than all, of the City's $8,740,000 Sales Tax Revenue Bonds, Series
1999 (the "Bonds").
This offer is made subject to acceptance by the City on the date hereof, and upon
such acceptance and approval as evidenced by signatures in the spaces provided below,
this Purchase Contract shall be in full force and effect in accordance with its terms and
shall be binding upon the City and the Underwriter. If this offer is not so accepted and
approved, it is subject to withdrawal by the Underwriter upon written notice delivered to the
Director of Finance at any time prior to such acceptance and approval.
All capitalized terms used herein and not otherwise defined shall have the meanings
set forth in the hereinafter mentioned Official Statement and appendices thereto and in the
hereinafter mentioned Resolution. The terms "Closing" or "Date of Closing" refer to that
date, further described in Section 6 herein, upon which the City will deliver, or cause to be
delivered, the Bonds to the Underwriter along with other documents herein mentioned.
1. Purchase, Sale and Delivery of the Bonds. Subject to the terms and
conditions and in reliance upon the representations, warranties and covenants herein set
. forth: (a) the Underwriter hereby agrees to purchase from the City and the City hereby
6323-0100 244143.1
agrees to sell and deliver to the Underwriter all, but not less than all, of the Bonds at an
aggregate price of $8,632,891.84 (being the face amount of the Bonds less $66,956.60 of
original issue discount and $40,151.56 Underwriter's Discount) plus interest accrued
thereon from July 15, 1999 to the Date of Closing.
The Series 1999 Bonds are being issued pursuant to and under the authority of the
Constitution and laws of the State of Florida, including without limitation, Chapter 166,
Florida Statutes, as amended, and, to the extent not inconsistent with and not repealed by
the provisions of Section 166.021, Florida Statutes, Chapter 218, Florida Statues, as
amended, Chapter 212, Florida Statues, as amended, and other applicable provisions of
law (collectively, the "Act"). The Bonds are also being issued pursuant to Resolution No.
R99-191 duly adopted by the City Commission of the City ("City Commission") on July 14,
1999 and Resolution No. 98-156 duly adopted by the City Commission on May 27, 1998
(together, the "Resolution").
The Bonds shall be substantially in the form described in the Official Statement and
the Resolution. The Bonds shall be issued pursuant to and secured under, the Resolution.
The Bonds shall bear interest at the rates per annum, mature at the times and in the
amounts and be subject to redemption on the dates, all as set forth in Exhibit A attached
hereto.
The Underwriter agrees to make a bona fide public offering of all of the Bonds,
• solely pursuant to the Official Statement, at the initial offering prices set forth in the Official
Statement, reserving, however, the right to (1) change such initial offering prices as the
Underwriter shall deem necessary in connection with the marketing of the Bonds and (ii)
offer and sell the Bonds to certain dealers (including dealers depositing the Bonds into
investment trusts) at concessions to be determined by the Underwriter. The Underwriter
also reserve the right to over -allot or effect transactions that stabilize or maintain the
market prices of the Bonds at levels above that which might otherwise prevail in the open
market to the extent permitted by law and to discontinue such stabilizing, if commenced,
at any time.
2. Good Faith Check. The City hereby acknowledges receipt of a corporate
check payable to the City in the amount of $87,400.00 (the "Good Faith Check") as security
for the performance by the Underwriter of its obligation to accept and pay for the Bonds at
the Closing in accordance with the provisions of this Purchase Contract. The parties hereto
agree that such check shall be held uncashed by the City. Such Good Faith Check is
provided to the City as security for the performance by the Underwriter of its obligation to
accept and pay for the Bonds at the Closing in accordance with the provisions of this
Purchase Contract. In the event the City does not accept this offer, or upon its failure to
deliver the Bonds at the Closing, or if it shall be unable to satisfy the conditions to the
obligations of the Underwriter contained in this Purchase Contract, or if such obligations
shall be terminated for any reason permitted by this Purchase Contract, the City shall be
obligated to immediately return the Good Faith Check to the Underwriter. In the event the
Underwriter fail (other than for a reason permitted under this Purchase Contract) to accept
0323.0100 244143.1 2
. and pay for the Bonds at the Closing, the City may cash and retain the proceeds of the
Good Faith Check as and for full liquidated damages for such failure and for any and all
defaults hereunder on the part of the Underwriter and thereupon, except with respect to
the obligations of the Underwriter set forth in Section 9 hereof, all claims and rights
hereunder against the Underwriter shall be fully released and discharged, it being
understood by the City and the Underwriter that actual damages in such circumstances
may be difficult or impossible to compute.
3. Preliminary Official Statement and Official Statement. The City hereby
confirms that it has heretofore made available to the Underwriter a Preliminary Official
Statement of the City relating to the Bonds dated July 15, 1999 (which, together with the
cover page and appendices contained therein, is herein called the "Preliminary Official
Statement"), and hereby confirms, ratifies and authorizes the distribution thereof to
prospective purchasers and investors. Within seven business days of the acceptance
hereof by the City, the City shall cause to be delivered such reasonable number of
conformed copies as the Underwriter shall reasonably request of the Official Statement,
dated the date hereof (which, together with the cover page and appendices contained
therein, is herein called the "Official Statement"), executed on behalf of the City by its
Director of Finance and Mayor or Vice Mayor, which shall be sufficient in number to enable
the Underwriter to comply with paragraph (b)(4) of Rule 15c2-12 of the Securities and
Exchange Commission (17 CFR §240.15c2-12) underthe Securities Exchange Act of 1934
and with Rule G-32 and all other applicable rules of the Municipal Securities Rulemaking
Board. The City, by its acceptance hereof, ratifies and approves and authorizes the
Underwriter to use the Official Statement and all documents described therein in
connection with the public offering and the sale of the Bonds.
In accordance with Section 218.385, Florida Statutes, the Underwriter hereby
disclose the required information as provided in Exhibit B attached hereto, including
providing the City with a truth -in -bonding statement.
4. Use of Documents. You hereby authorize the use by the Underwriter of (a)
the Resolution, (b) the Preliminary Official Statement, (c) the Official Statement (including
any supplements or amendments thereto) and (d), any other documents related to the
transactions contemplated in the Official Statement in connection with the public offering,
sale and distribution of the Bonds.
5. Representations, Warranties and Agreements. The City hereby
represents, warrants and agrees as follows:
(a) The statements and information contained in the Official Statement relating
to the City are true, correct and complete in all material respects and the Official Statement
does not omit any statement or information which should be included therein for the
purposes for which the Official Statement is to be used or which is necessary to make the
statements or information contained therein relating to the City, in light of the
circumstances under which they were made, not misleading.
6323-0100 244143.1 3
(b) Between the date of this Purchase Contract and the time of Closing, the City
will not execute any bonds, notes or obligations for borrowed money, other than the Bonds,
or obligations which pledge either the full faith and credit of the City or the Pledged
Revenues (as defined in the Resolution), without giving prior written notice thereof to the
Underwriter.
(c) The City is, and will be on the Closing Date (herein defined), duly organized
and validly existing as a public body corporate and politic and a municipality under the
Constitution and the laws of the State of Florida, with the powers and authority set forth in
the Act.
(d) The City has full legal right, power and authority to: (i) enter into this
Purchase Contract and the Continuing Disclosure Certificate of the City, to be dated the
date of Closing (the "Continuing Disclosure Certificate"), (ii) adopt the Resolution, (iii) sell,
issue and deliver the Bonds to the Underwriter as provided herein, and (iv) carry out and
consummate the transactions contemplated by this Purchase Contract, the Resolution, the
Continuing Disclosure Certificate and the Official Statement and the City has complied, and
at the Closing will be in compliance, in all respects, with the terms of the Act and with the
obligations on its part in connection with the issuance of the Bonds contained in the
Resolution, the Bonds, the Continuing Disclosure Certificate and this Purchase Contract.
(e) By all necessary official action, the City has duly adopted the Resolution, has
. duly authorized and approved the Official Statement, has duly authorized and approved
the execution and delivery of, and the performance by the City, of this Purchase Contract,
the Continuing Disclosure Certificate and all other obligations on its part in connection with
the issuance of the Bonds and the consummation by it of all other transactions
contemplated by this Purchase Contract in connection with the issuance of the Bonds;
upon delivery of the Bonds, the Bonds and the Continuing Disclosure Certificate will
constitute a legal, valid and binding obligation of the City, enforceable in accordance with
their terms, subject to applicable bankruptcy, insolvency, and similar laws affecting
creditors' rights generally and subject, as to enforceability, to general principles of equity.
(f) When delivered to and paid for by the Underwriter on the Closing Date in
accordance with the provisions of this Purchase Contract, the Bonds will have been duly
authorized, executed, issued and delivered and will constitute valid and binding obligations
of the City in conformity with the Act and the Resolution, and shall be entitled to the
benefits of the Resolution, including a pledge of and lien upon the Pledged Revenues in
accordance with the provisions of the Resolution, subject to bankruptcy, insolvency,
reorganization, moratorium and other similar laws affecting creditors' rights generally and
subject, as to enforceability, to general principles of equity.
(g) The adoption of the Resolution and the authorization, execution and delivery
of this Purchase Contract, the Continuing Disclosure Certificate and the Bonds, in
compliance with the provisions hereof and thereof, will not conflict with, or constitute a
breach of or default under any law, administrative regulation, consent decree, ordinance,
6323-0100 244143.1 4
•
resolution or any agreement or other instrument to which the City was or is subject, as the
case may be, norwill such adoption, execution, delivery, authorization or compliance result
in the creation or imposition of any lien, charge or other security interest or encumbrance
of any nature whatsoever upon any of the property or assets of the City, or under the terms
of any law, administrative regulation, ordinance, resolution or instrument, except as
expressly provided by the Resolution.
(h) On the Closing Date, the City will be in compliance in all respects with the
covenants and agreements contained in the Resolution and no event of default and no
event which, with the lapse of time or giving of notice, or both, would constitute an event
of default under the Resolution will have occurred or be continuing.
(i) Except as provided in the Official Statement, all approvals, consents,
authorizations and orders of any governmental authority or agency having jurisdiction in
any matter which would constitute a condition precedent to the performance by the City of
its obligations hereunder and its obligations under the Resolution have been obtained and
are in full force and effect.
(j) The City is lawfully empowered to pledge and grant a lien upon the Pledged
Revenues for payment of the principal of, redemption premium, if any, and interest on the
Bonds as set forth in the Resolution.
(k) Except as disclosed in the Official Statement, to the best knowledge of the
City, as of the date hereof, there is no action, suit, proceeding, inquiry or investigation, at
law or in equity, before or by any court, government agency, public board or body, pending
or threatened against the City, affecting or seeking to prohibit, restrain or enjoin the sale,
issuance or delivery of the Bonds or the collection of the Pledged Revenues under the
Resolution, the Continuing Disclosure Certificate or contesting or affecting as to the City
the validity or enforceability in any respect relating to the Bonds, the Resolution, the
Continuing Disclosure Certificate or this Purchase Contract, or contesting the tax-exempt
status of interest on the Bonds, or contesting the completeness or accuracy of the Official
Statement or any supplement or amendment thereto, or contesting the powers of the City
and Commission or any authority for the issuance of the Bonds, the adoption of the
Resolution or the execution and delivery by the City of the Continuing Disclosure Certificate
or this Purchase Contract.
(1) The City will furnish such information, execute such instruments and take
such other action in cooperation with the Underwriter as the Underwriter may reasonably
request in order to (i) qualify the Bonds for offer and sale under the "blue sky" or other
securities laws and regulations of such states and other jurisdictions of the United States
as the Underwriter may designate, and (ii) determine the eligibility of the Bonds for
investment underthe laws of such states and other jurisdictions, and will use its best efforts
to continue such qualifications in effect so long as required for the distribution of the Bonds;
provided, however, that the City shall not be required to execute a general or special
6323-0100 244143.1 5
consent to service of process or qualify to do business in connection with any such
qualification or determination in any jurisdiction.
(m) The City will not take or omit to take any action which action or omission will
in any way cause the proceeds from the sale of the Bonds to be applied in a manner
contrary to that provided for in the Resolution and as described in the Official Statement.
(n) The City neither is nor has been in default any time after December 31, 1975,
as to payment of principal or interest with respect to an obligation issued or guaranteed by
the City.
(o) The City has not been notified of any listing or proposed listing by the Internal
Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not
be relied upon.
(p) As of its date, the Preliminary Official Statement is deemed "final" by the City
for purposes of SEC Rule 15c2-12(b)(1) ("Rule 15c2-12").
(q) If, between the date of this Purchase Contract and the Termination of the
Disclosure Period (hereinafter defined), any event shall occur which might or would cause
the Official Statement, as then supplemented or amended, to contain any untrue statement
of a material fact or to omit to state a material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading, the
City shall notify the Underwriter thereof, and, if in the opinion of the Underwriter such event
requires the preparation and publication of a supplement or amendment to the Official
Statement, the City will at its own expense forthwith prepare and furnish to the Underwriter
a sufficient number of copies of an amendment of or supplement to the Official Statement
(in form and substance satisfactory to Counsel to the Underwriter) which will supplement
or amend the Official Statement so that it will not contain an untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements therein, in
light of the circumstances existing at such time, not misleading.
For purposes of this Purchase Contract:
(1) The "Termination of the Disclosure Period" shall mean the later of (i)
the earlier of (x) the ninetieth day following the End of the Underwriting Period (as defined
in subparagraph (2) below) and (y) the time when the Official Statement is available to any
person from a nationally recognized municipal securities information repository and (ii) the
twenty-fifth day following the End of the Underwriting Period; and
(2) The "End of the Underwriting Period " shall mean the earlier of (i)
twenty days after the Closing Date, unless the City has been notified in writing by the
Underwriter on or prior to the Closing Date that the "End of the Underwriting Period" for
purposes of Rule 15c2-12 will not occur on the Closing Date and (ii) the date on which
notice is given to the City by the Underwriter in accordance with the following sentence. In
6323-0100 244143.1 6
�J
the event that the Underwriter have given notice to the City pursuant to clause (i) of this
subparagraph (2) that the "End of the Underwriting Period" will not occur on the Closing
Date, the Underwriter agree to notify the City in writing as soon as practicable of the "End
of the Underwriting Period" for purposes of Rule 15c2-12.
6. Closing. At 9:00 a.m., local time, August 5 , 1999, or at such time on such
earlier or later date as shall be agreed upon by the City and the Underwriter (the "Closing"
or "Closing Date"), the activities relating to the execution and delivery of certain documents
and the delivery of the certificates, opinions and other instruments as described in Section
8(e) hereof shall occur at the offices of the City, or such other location as shall be mutually
agreed upon by the City and the Underwriter. Such simultaneous execution and delivery
of such documents, certificates, opinions and other instruments are herein referred to as
the "Closing." On the Closing Date, the City shall be obligated to sell, and the Underwriter
to buy, the Bonds on the Closing Date.
On the Closing Date:
(a) The City shall deliver to the Underwriter (i) the Bonds as provided in clause
(c) of this paragraph, duly authorized, executed and authenticated, and (ii) the other
instruments and documents required to be delivered to the Underwriter pursuant to Section
7(e) hereof;
(b) The Purchase Price shall be paid to the City in Federal Funds (by wire
transfer or check, or by any combination of one or more wires or checks as may be
agreeable to the City and the Underwriter); and
(c) Delivery will be accomplished by the issuance of one Bond for each maturity
of the Bonds in printed or typewritten form in a denomination equal to the aggregate
principal amount of each such maturity, registered in the name of Cede & Co., or
successor thereto, as nominee for The Depository Trust Company, New York, New York
("DTC") and authenticated by the Paying Agent/Registrar. The Bonds shall be made
available to the Underwriter at least one full business day before the Closing Date for
purposes of inspection. The Bonds delivered hereunder shall bear proper CUSIP numbers
(provided, however, that neither the printing of a wrong CUSIP number on any Bond nor
the failure to print the CUSIP number thereon shall constitute cause to refuse to accept
delivery of any Bond).
7. Closing Conditions. The Underwriter have entered into this Purchase
Contract in reliance upon the representations and warranties of the City herein contained
and the performance by the City of its obligations hereunder, both as of the date hereof
and as of the time of Closing. The obligations of the Underwriter under this Purchase
Contract are and shall be subject to the following conditions:
6323-0I00 244143,1 7
(a) The representations, warranties and agreements of the City contained herein
shall be true and correct and complied with as of the date hereof and as of the date of the
Closing, as if made on the date of the Closing.
(b) At the time of the Closing, the Resolution shall be in full force and effect in
accordance with its terms 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 Underwriter.
(c) At the time of the Closing, all official action of the City relating to this
Purchase Contract and the Bonds (other than delivery thereof in accordance with Section
6 hereof) shall be in full force and effect in accordance' with their respective terms and
shall not have been amended, modified or supplemented in any material respect, except
in each case as may have been agreed to by the Underwriter.
(d) The Underwriter shall have the right to cancel the agreement contained
herein to purchase, to accept delivery of and to pay for the Bonds by notifying you in writing
of their intention to do so if.
(i) between the date hereof and the Closing Date, legislation shall have
been enacted by the Congress of the United States, or recommended to the
Congress for passage by the President of the United States, or favorably
reported for passage to either House of Congress by any Committee of such
House, or passed by either House of Congress, or a decision shall have
been rendered by a court of the United States or the United States Tax
Court, or a ruling shall have been made or a regulation shall have been
proposed or made by the Treasury Department of the United States or the
Internal Revenue Service, with respect to the federal taxation of interest
received on obligations of the general character of the Bonds, which, in the
opinion of Counsel for the Underwriter have, or will have, the effect of making
such interest subject to inclusion in gross income for purposes of federal
income taxation, except to the extent such interest shall be includible in
gross income on the date hereof, or
(ii) between the date hereof and the Closing Date, legislation shall be
enacted or any action shall be taken by the Securities and Exchange
Commission which, in the opinion of Counsel for the Underwriter, has the
effect of requiring the contemplated issuance or distribution of the Bonds to
be registered under the Securities Act of 1933, as amended, or of requiring
the Resolution to be qualified under the Trust Indenture Act of 1939, as
amended, or
(iii) an event described in paragraph (q) of Section 5 hereof shall have
occurred which requires an amendment or supplement to the Official
Statement and which, in the reasonable opinion of the Underwriter, materially
6323-0100 244143.1 8
adversely affects the marketability of the Bonds or the market price thereof,
or
(iv) in the reasonable opinion of the Underwriter, payment for and delivery
of the Bonds is rendered impracticable or inadvisable because (A) trading in
securities generally shall have been suspended on the New York Stock
Exchange, Inc., or (B) a general banking moratorium shall have been
established by Federal, New York or Florida authorities, or (C) a war or
escalation of war involving the United States or other national calamity shall
have occurred or been declared, or
(v) an order, decree or injunction of any court of competent jurisdiction,
or any order, ruling, regulation or administrative proceeding by any
governmental body or board, shall have been issued or commenced, or any
legislation enacted, with the purpose or effect of prohibiting the issuance,
offering or sale of the Bonds as contemplated hereby or by the Official
Statement or prohibiting the adoption, enactment or performance of the
Resolution, or
(vi) the City has, without the prior written consent of the Underwriter,
offered or issued any bonds, notes or other obligations for borrowed money,
or incurred any material liabilities, direct or contingent, other than as
described in the Official Statement, in either case payable from the full faith
and credit of the City or the Pledged Revenues, or
(vii) the President of the United States, the office of Management and
Budget, the Department of Treasury, the Internal Revenue Service or any
other governmental body, department, agency or commission of the United
States or the State of Florida shall take or propose to take any action or
implement or propose regulations, rules or legislation which, in the
reasonable judgment of the Underwriter, materially adversely affects the
market price of the Bonds or causes any material information in the Official
Statement, in light of the circumstances under which it appears, to be
misleading in any material respect, or
(viii) any executive order shall be announced, or any legislation, ordinance,
rule or regulation shall be proposed by or introduced in, or be enacted by any
governmental body, department, agency or commission of the United States
or the State of Florida or the State of New York, having jurisdiction over the
subject matter, or a decision by any court of competent jurisdiction within the
United States or within the State of Florida or the State of New York shall be
rendered which, in the reasonable judgment of the Underwriter, materially
adversely affects the market price of the Bonds or causes any information
in the Official Statement to be misleading in any material respect, or
6323-0100 244143.1 9
(ix) prior to the Closing Date, Financial Guaranty Insurance Company (the
"Municipal Bond Insurer") shall notify the City that they shall be unable to
deliver its municipal bond insurance policy (the "Municipal Bond Insurance
Policy") on the Closing Date.
(e) At or prior to the Closing Date, the Underwriter shall receive the following
documents:
(i) The Resolution certified by the City Clerk under seal as having been
duly adopted or enacted by the City and as being in effect, with such
supplements, modifications or amendments as may have been agreed to by
the Underwriter. The Underwriter shall also receive executed copies of this
Purchase Contract and the Continuing Disclosure Certificate.
(ii) The approving opinion of Akerman, Senterfitt & Eidson, P.A., Bond
Counsel to the City, addressed to the City, dated the date of the Closing, in
substantially the form included in the Official Statement as Appendix D (the
"Approving Opinion").
(iii) An opinion of Akerman, Senterfitt & Eidson, P.A., addressed to the
City, the Underwriter and the Municipal Bond Insurer and dated the Closing
Date in substantially in the form attached hereto as Exhibit C.
(iv) An opinion of Mitchell S. Kraft, Esq., City Attorney, addressed to the
City, the Municipal Bond Insurer and the Underwriter, and dated the Closing
Date in substantially the form attached hereto as Exhibit D.
(v) A certificate, which shall be true and correct at the Closing Date,
signed by the Director of Finance, or such other officials satisfactory to the
Underwriter, and in form and substance satisfactory to the Underwriter, to the
effect that, to the best of his knowledge and belief (A) the representations,
warranties and covenants of the City contained herein are true and correct
in all material respects and are complied with as of the Closing Date, and (B)
the Official Statement did not as of its date, and does not as of the Closing
Date, as to factual matters, contain any untrue statement of a material fact
or omit to state a material fact which should be included therein for the
purposes for which the Official Statement is to be used, or which is
necessary in order to make the statements contained therein, in light of the
circumstances in which they wee made, not misleading (except for the
information relating to DTC, the book -entry only system of registration, the
Municipal Bond Insurer and the Municipal Bond Insurance Policy as to which
no view need be expressed).
(vi) An opinion of Atlas, Pearlman, Trop & Borkson, P.A., Counsel to the
Underwriter, addressed to the Underwriter, and dated the Closing Date, to
6323-0100 244143-1 10
the effect that (A) with respect to the information in the Official Statement
and based upon said firm's participation in the preparation and review of the
Official Statement as Counsel to the Underwriter and without having
undertaken to determine independently the accuracy or completeness of the
contents of the Official Statement, said firm has no reason to believe that the
Official Statement (except for the financial and statistical data contained
therein and the information relating to DTC, the book -entry only system of
registration, the Municipal Bond Insurer, and the Municipal Bond Insurance
Policy as to which no view need by expressed) contains an untrue statement
of a material fact or omits to state a material fact required to be stated
therein or necessary to make the statements made therein, in light of the
circumstances under which they were made, not misleading, and (B) as of
the Closing Date, the Bonds are exempt from registration under the
Securities Act of 1933, as amended, and the Resolution is exempt from
qualification as an indenture under the Trust Indenture Act of 1939, as
amended.
(vii) A certificate of an authorized representative of The Bank of New York,
Jacksonville, Florida (the "Bank"), as Registrar and Paying Agent (A) the
Bank is a national bank duly organized, validly existing and in good standing
under the laws of the United States of American and is duly authorized to
exercise trust powers in the State of Florida, (B) the Bank has all requisite
authority, power, licenses, permits and franchises, and has full corporate
power and legal authority to execute and perform the functions of Paying
Agent and Registrar under the Resolution, (C) the performance by the Bank
of its functions under the Resolution will not result in any violation of the
Articles of Association or Bylaws of the Bank, any court order to which the
Bank is subject or any agreement, indenture or other obligation or instrument
to which the Bank is a party or by which the Bank is bound, and no approval
or other action by any governmental authority or agency having supervisory
authority over the Bank is required to be obtained by the Bank in order to
perform its functions under the Resolution, and (D) to the best of such
authorized representative's knowledge, there is no action, suit, proceeding
or investigation oat law or in equity before any court, public board or body
pending or, to his or her knowledge, threatened against or affecting the Bank
wherein an unfavorable decision, ruling or finding on an issue raised by any
party thereto is likely to materially and adversely affect the ability of the Bank
to perform its obligations under the Resolution.
(viii) An executed copy of the Municipal Bond Insurer commitment to issue
the Municipal Bond Insurance Policy.
(ix) Such additional legal opinions, certificates, instruments and other
documents as the Underwriter may reasonably request to evidence the truth
and accuracy, as of the date hereof and as of the Closing Date, of the City's
6323-0100 244143.1 11
representations and warranties contained herein and of the statements and
information contained in the Official Statement and the due performance or
satisfaction by the City on or prior to the Closing Date of all the agreements
then to be performed and conditions then to be satisfied by it.
If the City shall be unable to satisfy the conditions to the obligations of the
Underwriter to purchase and to pay for the Bonds contained in this Section 8 and the
Underwriter do not waive such inability in writing, or if the obligations of the Underwriter to
purchase, to accept delivery of and to pay for the Bonds shall be terminated for any reason
permitted by this Purchase Contract, this Purchase Contract shall terminate and neither
the Underwriter nor the City shall be under any further obligation hereunder, except that
the respective obligations of the City and the Underwriter set forth in Section 9 hereof shall
continue in full force and effect.
9. Expenses. The Underwriter shall be under no obligation to pay, and the
City shall pay, any expense incident to the performance of the City's obligations hereunder
including, but not limited to: (a) the cost of preparation, printing and delivery of the
Resolution; (b) the cost of preparation and printing of the Bonds; (c) the fees and
disbursements of Bond Counsel and the City Attorney; (d) the fees and disbursements of
Public Financial Management, Inc., the financial advisor to the City; (e) the fees and
disbursements of the City's certified public accountants; (f) the fees and disbursements of
any other experts, consultants or advisors retained by the City; (g) fees for bond ratings;
(h) the fees and expenses of the Registrar and Paying Agent for the Bonds; (i) the
Municipal Bond Insurance Policy premium; and (j) the costs of preparing, printing and
delivering the Preliminary Official Statement and the Official Statement and any
supplements or amendments thereto.
The Underwriter shall pay: (a) the cost of preparing, printing and delivery of any
agreements among the Underwriter; (b) the cost of preparing, printing and delivery of this
Purchase Contract; (c) the cost of all "blue sky" and legal investment memoranda and
relating filing fees; (d) the fees and expenses of Counsel to the Underwriter; (e) all
advertising expenses; and (f) all other expenses incurred by them or any of them in
connection with the public offering of the Bonds. In the event that either party shall have
paid obligations of the other as set forth in this Section 9, adjustment shall be made at the
time of Closing or Closing Date.
10. Notices. Any notice or other communication to be given to you underthis
Purchase Contract may be given by mailing the same to City of Tamarac, 7525 N.W. 88"'
Avenue, Tamarac, Florida 33321-2401, to the attention of Margaret McGarrity, Director of
Finance, and any such notice or other communication to be given to the Underwriter may
be mailed to First Union Capital Markets Corp., 111 2nd Avenue, NE Street, Suite 815, St.
Petersburg, Florida 33701 to the attention of Todd H. Holder.
11. Parties of Interest. This Purchase Contract is made solely for the
benefit of the City and the Underwriter and no other party or person shall acquire or have
6323-0100 244143.1 12
any right hereunder or by virtue hereof. All your representations, warranties and
agreements in this Purchase Contract shall remain operative and in full force and effect
and shall survive the delivery of the Bonds.
12. Waiver. Notwithstanding any provision herein to the contrary, the
performance of any and all obligations of the City hereunder and the performance of any
and all conditions contained herein for the benefit of the Underwriter may be waived. by the
Underwriter, in, their sole discretion, and the approval of the Underwriter when required
hereunder or the determination of their'satisfaction as to any document referred to herein
shall be in writing, signed by an appropriate officer or officers of the Underwriter and
delivered to you. .
13. No Liability. Neither the Commission, nor any of the members thereof, nor
any officer, agent or employee thereof, shall be charged personally by the Underwriter with
any liability, or held liable to,the Underwriter under any term or provision of this Purchase
Contract because of its execution or attempted execution, or because of any breach or
attempted or alleged breach thereof.
14. Governing Law. This Purchase Contract, and the terms and Conditions
herein, shall constitute the full and complete agreement between the City and the
Underwriter with respect to the purchase and sale of the Bonds. This Purchase Contract
shall be governed by and construed in accordance with the laws of the State of Florida.
Very truly yours,
FIRST UNION CAPITAL, MARKETS CORP.
Todd H. Hol �er,ce President
First Union Capital Markets Cara.
Accepted this 22 day July , . 1999.
CITY OF TAMARAC, FLORIDA
e; Joe' Schreiber.
Its; Mayor _
023-U1 W 2"1411
0
13
any right hereunder or by virtue hereof.
agreements in this Purchase Contract shall
and shall survive the delivery of the Bonds.
All your representations, warranties and
remain operative and in full force and effect
12. Waiver. Notwithstanding any provision herein to the contrary, the
performance of any and all obligations of the City hereunder and the performance of any
and all conditions contained herein for the benefit of the Underwriter may be waived by the
Underwriter, in their sole discretion, and the approval of the Underwriter when required
hereunder or the determination of their satisfaction as to any document referred to herein
shall be in writing, signed by an appropriate officer or officers of the Underwriter and
delivered to you.
13. No Liability. Neither the Commission, nor any of the members thereof, nor
any officer, agent or employee thereof, shall be charged personally by the Underwriter with
any liability, or held liable to the Underwriter under any term or provision of this Purchase
Contract because of its execution or attempted execution, or because of any breach or
attempted or alleged breach thereof.
14. Governing Law. This Purchase Contract, and the terms and conditions
herein, shall constitute the full and complete agreement between the City and the
Underwriter with respect to the purchase and sale of the Bonds. This Purchase Contract
shall be governed by and construed in accordance with the laws of the State of Florida.
• Very truly yours,
is
FIRST UNION CAPITAL MARKETS CORP.
Todd H. Holder, Vice President
First Union Capital Markets Corp.
Accepted this 22 day July , 1999.
CITY OF TAMARAC, FLORIDA
�)OLe '14
N' e: Joe Schreiber
Its: Mayor
6323-0100 244143A 13
L�
EXHIBIT A
1999 BONDS
MATURITIES, PRINCIPAL AMOUNTS, INTEREST RATES, PRICES AND YIELDS
Maturity Principal Interest
(April 1 Amount Rate Yield Price
Serial Bonds:
2000
280,000
3.550%
3.550%
100.000
2001
290,000
3.900%
3.950%
99.916
2002
305,000
4.000%
4.050%
99.871
2003
315,000
4.100%
4.150%
99.827
2004
330,000
4.200%
4.250%
99.786
2005
345,000
4.300%
4.350%
99.746
2006
355,000
4.400%
4.450%
99.709
2007
375,000
4.500%
4.550%
99.674
2008
390,000
4.600%
4.650%
99.641
2009
410,000
4.700%
4.750%
99.610
2010
425,000
4.750%
4.850%
99.169
2011
445,000
4.850%
4.950%
99.115
2012
.
470,000
4.900%
5.000%
99.064
2013
490,000
5.000%
5.050%
99.504
2014
515,000
5.000%
5.100%
98.969
2015
540,000
5.100%
5.150%
99.460
2016
570,000
5.100%
5.200%
98.887
2017
600,000
5.125%
5.230%
98.792
7,450,000
Term Bond:
2019 1,290,000 5.125% 5.270% 98.231
�:�L'�II�IIIII]
Optional Redemption
The 1999 Bonds maturing on or after April 1, 2010 are subject to redemption at the
option of the City from any money legally available therefor, in whole or in part on any date
not earlier than April 1, 2009, and if in part, in any order of maturities selected by the City
Commission (by lot within any maturity) at the redemption prices (expressed as
percentages of the principal amount of the 1999 Bonds or portions thereof to be
redeemed) together with accrued interest to the redemption dates, as follows:
6323-0100 243749.1
0 Redemption Period (dates inclusive) Redemption Price
•
April 1, 2009 through March 31, 2010 101 %
April 1, 2010 and thereafter
6323-0100 243749.1 2
100%
•
EXHIBIT B
DISCLOSURE STATEMENT
July 22, 1999
Honorable Mayor and Members
of the City Commission
City of Tamarac
7525 N.W. 881h Avenue
Tamarac, FL 33321-2401
Re: $8,740,000 City of Tamarac, Florida Sales Tax Revenue Bonds, Series 1999
Dear Mayor and Commissioners:
In connection with the proposed issuance by the City of Tamarac, Florida (the "City")
of $8,740,000 initial aggregate principal amount of is Sales Tax Revenue Bonds, Series
1999 (the "Bonds"), First Union Capital Markets Corp. (the "Underwriter") is underwriting
a public offering of the Bonds.
The purpose of this letter is to furnish, pursuant to the provisions of Section
218.385(4), Florida Statutes, certain information in respect of the arrangement
01 contemplated for the underwriting of the Bonds as follows:
1. The nature and estimated amount of expenses ($7,376.56) to be incurred by
the Underwriter in connection with the purchase and reoffering of the Bonds are set forth
in Schedule 1 attached hereto.
2. In accordance with Rule G-38 of the Municipal Securities Rulemaking Board
("MSRB"), a bank consultant, an employee of First Union National Bank, has been
engaged by the Underwriter to provide referrals regarding public finance projects. The law
firm of Colodny, Fass & Talenfeld, P.A. ("CF&T") has been hired by the Underwriter to
provide access on civic and community issues in Florida and to seek opportunities for
government banking business including underwriting and placement of municipal
securities. For this advice, CF&T receives compensation of $2,000.00 monthly from the
Underwriter and is reimbursed for any out-of-pocket expenses in the course of providing
this advice. Except as provided in this paragraph, no person has entered into an
understanding with the Underwriter, or to the knowledge of the Underwriter, with the City,
for any paid or promised compensation or valuable compensation, directly or indirectly,
expressed or implied, to act solely as an intermediary between the City and the Underwriter
or to exercise or attempt to exercise any influence to effect any transaction in the purchase
of the bonds.
6323-0100 243741A
3. The underwriting spread, the difference between the price at which the Bonds
will be initially offered to the public by the Underwriter and the price to be paid to the City
for the Bonds, exclusive of accrued interest, will be $4.594 per $1,000 of bonds issued.
4. As part of the estimated underwriting spread set forth above, the Underwriter
will charge a management fee of $0.00 per $1,000 of Bonds issued.
5. No other fee, bonus or other compensation is estimated to be paid by the
Underwriter in connection with the issuance of the Bonds to any person not regularly
employed or retained by the Underwriter (including any "finder" as defined in
Section 218.386(1)(a), Florida Statutes), except as specifically enumerated as expenses
to be incurred by the Underwriter, as set forth in paragraph (1) above.
6. The name and address of the Underwriter is:
First Union Capital Markets Corp.
111 Second Avenue N.E. - Suite 815
St. Petersburg, Florida 33701
We understand that you do not require any further disclosure from the Underwriter
pursuant to Section 218.385(4), Florida Statutes.
0 Very truly yours,
•
FIRST UNION CAPITAL MARKETS CORP.
Todd H. Holder, Vice President
6323-0100 243741.1 B-2
0
3. The underwriting spread, the difference between the price atwhich the Bands
will be initially orfered to the public by the Underwriter and the price to be paid to the City
for the Bonds, exclusive of accrued Interest, will be $4.594 per $1,000 of bonds issued.
4. As part of the estimated underwriting spread set forth above, the Underwriter
will charge a management fee of $0.00 per $1,000 of Bonds issued.
5. No other fee. bonus or other compensation is estimated to be paid by the
Underwriter in connection with the issuance of,the Bonds to any person not regularly
employed or retained by the Underwriter (including any "finder" as defined in
Section 218.336(1)(a), f9orida Statutes), except as specifically enumerated as expenses
to be Incurred by the Underwriter, as set forth in paragraph (1) above.
6. The name and address of the Underwriter is:
First Union Capital Markets Corp.
111 Second Avenue N.E. - Suite 815
St. Petersburg, Florida 33701
We understand that you do not require any further disclosure from the Underwriter
pursuant to Section 218.385(4), Florida Statutes.
M"10o u"41-t
Very truly yours,
FIRST UNION CAPITAL MARKETS CORP.
4N
1.1
•
0
SCHEDULE 1 TO EXHIBIT B
UNDERWRITER'S ESTIMATED EXPENSES
Underwriter's Counsel Fee and Expenses
Day Loan
DTC
CUSIP
Communications
Data Processing
Miscellaneous
Total
6323-0100 243741.1
FW
/$1.000
$0.61
$5,340.14
0.03
242.78
0.04
365.52
0.03
226.00
0.03
250.00
0.05
450.00
0.05
502.12
$0.84 $7,376.56
0 SCHEDULE 2 TO EXHIBIT B
TRUTH -IN -BONDING STATEMENT
July 22, 1999
Honorable Mayor and Members
of the City Commission
City of Tamarac
7525 N.W. 881h Avenue
Tamarac, Florida 33321-2401
Re: $8,740,000 City of Tamarac, Florida Sales Tax Revenue Bonds, Series 1999
Dear Mayor and Commissioners:
In connection with the proposed issuance by the City of Tamarac, Florida (the "City")
of $8,740,000 initial aggregate principal amount of is Sales Tax Revenue Bonds, Series
1999 (the "Bonds"), First Union Capital Markets Corp. (the "Underwriter") is underwriting
a public offering of the Bonds pursuant to a Purchase Contract (the "Purchase Contract"),
dated July 22, 1999 between the Underwriter and the City.
The purpose of this letter is to furnish, pursuant to the provisions of Section
218.385(2) and (3), Florida Statutes, as amended, the truth -in -bonding statements required
thereby, as follows:
1. The City is proposing to issue $8,740,000 of the Bonds for the purpose of
providing money to (i) pay the costs of the Project (as defined in the Resolution); and (ii)
pay costs associated with issuing the Bonds, including the premium for a municipal bond
insurance policy as more fully described in the Purchase Contract. This debt or obligation
is expected to be repaid over a period of twenty (20) years. At a forecasted interest rate
(TIC) of 5.050026%, total interest paid over the life of the debt or obligation will be
$5,046,220.83.
2. The source of repayment for the Bonds is a pledge of the Pledged Funds (as
such term is defined in the Resolution) which consist of the half -cent sales tax revenues
(as defined in the Resolution), Authorizing this debt or obligation will result in an
approximate average of $700,222.41 of the City's Pledged Funds not being available to
the City to finance other services of the City each year for twenty (20) years.
6323-0100 243741.1 B-4
E
•
The foregoing is provided for information purposes only and shall not affect or
control the actual terms and conditions of the Bonds.
Very truly yours,
FIRST UNION CAPITAL MARKETS CORP.
L=�
Todd H. Holder, Vice President
6323-0100 243741.1 B-5
The foregoing is provided for information purposes only and shall not affect or
control the actual terms and conditions of the Bands.
•
0234100243741.1
0
Very truly yours,
FIRST UNION CAPITAL MARKETS CORP.
By.
Todd H. Holder, Vice President
)UL-14-99 05:07PM1 FROM-A5E ORL 1101
+40T8436610 T-801 P C2/02 :-T—o
CERTIFICATE AS TO PUBLIC i41ZETIi'GS
AND NO CQNILICT OF TNTERFST
STATE OF FLORIDA
COUNTY OF BROWARD
Each of the undersigned members of the City Commission (the "City Commission") of the
City of Tamarac, Florida (the "Issuer"), recognizing that the purchasers of the Ciry of Tam-:wc,
Florida, Sales Tax Revenue Bonds, Series 1999 (the "Series 1999 Bonds"), will have p=chased said
Series 1999 Bonds in reliance upon this Certificate, DOES HEREBY CERTIFY;
(1) that he or she has no personal knowledge that any two or more members of the City
Commission, meeting together, reached any prior conclusion as to whether the actions taken by the
City Commission, with respect to said Series 1999 Bonds, the security therefor and the application
of the proceeds thercoZ should or should not be taken by the City Commission or should or should
not be recommended as an action to be taken or not to be taken by the City Commissior., e%cepl at
public meetings of the City Commission held after due notice to the public was given in =e or"ina-L�-
manner required by law and custom of the City Commission;
(2) that he or she does not have or hold any employment or contractual : elationship " .
any business entity which is purchasing the Series 1999 Bonds from the Issuer.
IN WITNESS WHEREOF, we have hereunto affixed our official signatures as of the i =
day of July, 1999.
Mayor e Schreiber
icefi�I sin
mmissioner Edward C. Pormer
rk � 1
V �/Lh- /
OR 169705.1
r_1
Exhibit B to
Resolution No.
SWAP PROVIDER GUIDELINES
Any Swap entered into in connection with the issuance or incurrence by the Issuer of variable rate
indebtedness secured with the Bonds by a parity lien on Pledged Revenues shall meet the following
guidelines and, for purposes of calculating "Debt Service" and establishing compliance with
financial covenants under the Bond Resolution shall be treated as follows:
A. Long - Dated Swaps _-_ Term _or Weighted Average, Maturity of Ten Years or More.
1. The Swap provider must be rated at least A-/A3 or better by Standard & Poor's and
Moody's (the "Initial Rating Requirement").
2. Assuming satisfaction of the Initial Rating Requirement, and thereafter as long as the
long term indebtedness of the Swap provider or the claims paying ability of the Swap
provider does not fall below Baa2 or BBB by either Standard & Poor's or Moody's
(the "Minimum Rating Requirement"), all interest rate assumptions for purposes of
establishing or demonstrating compliance with a financial covenant (e.g., rate
covenant, reserve requirement, additional bonds test, asset transfer test, etc.) may be
based upon the synthetic fixed interest rate under the Swap.
• Failure to maintain a Swap provider holding the Minimum Rating Requirement or,
if the issuer elects, failure to replace any such Swap provider by another Swap
provider which holds the Initial Rating Requirement within ten business days, will
have the following effects: (1) compliance with any required rate covenant for the
preceding Fiscal Year will be based on the actual interest paid on the Variable Rate
Indebtedness during such Fiscal Year without regard to the Swap; (2) in the case of
any required debt service reserve fund, the amount required to be on deposit therein
will be re -calculated based on the formula described in Section 8A.(vi) of this
Resolution, calculated as of the date of original issuance of the variable rate
indebtedness and any resulting deficiency will be restored within the same one year
restoration period established in the bond documentation for curing Debt Service
Reserve Fund deficiencies; and (3) any "forward -looking" financial covenant based
upon "Debt Service", "Annual Debt Service" or "Maximum Annual Debt Service"
will be based upon the formula described in Section 8A.(vi) of this Resolution,
calculated as of the date the required calculation is made.
B. Sales Tax and Other Limited Tax Racked Issues.
The requirements outlined in A above will apply to all sales tax and limited tax -backed
transactions with the following additional requirements: (i) the term or weighted average
0 OA 190855;1
maturity of the Swap may not exceed ten years; and (ii) the Swap and the related bond
documentation must provide that, if the outstanding long term indebtedness or claims -paying
ability of the Swap provider falls below the Minimum Rating Requirement by Standard &
Poor's or Moody's, respectively, the Swap provider must be replaced within ten business
days (the replacement cost to be paid by the Issuer); provided, however, that if the Issuer
delivers a certificate demonstrating and concluding that, assuming the maximum permitted
rate of interest under the variable rate documentation, it is not then in default and will not be
in default under any financial covenant, the Issuer may elect the following treatment, in lieu
of replacing the Swap provider: (1) any "forward -looking" financial covenant based upon
"Annual Debt Service" or "Maximum Annual. Debt Service" (primarily the additional bonds
test) will be based on the maximum permitted rate of interest under the variable rate legal
documentation, and (2) in the case of the Debt Service Reserve Fund, the amount required
to be on deposit therein will be re -calculated based on the formula described in
Section (s)(iii) of Exhibit D hereto, calculated as of the date of original issuance of the
variable rate indebtedness and any resulting deficiency will be restored within the same
restoration period established in the bond documentation for curing Debt Service Reserve
Fund deficiencies.
C. Short Dated SwgHavingTerms or Weighted Average Maturities of Ten Years or Less
Whereu n Rel to o s Automaticall3f Convert to a Pre -Set Fixed Rate.
The embedded Swap provider must meet the Initial Rating Requirement. With respect to
. financial covenants, the synthetic fixed rate based on the Swap may be utilized for purposes
of demonstrating or establishing compliance with the applicable covenant. Failure to
maintain a Swap provider holding the Minimum Rating Requirement during the embedded
Swap period will require replacement of the Swap provider within ten business days. Failure
to replace will require re -calculation of the applicable financial covenants in the manner
outlined in A.2 above.
oaiyasss:1
OFFICIAL STATEMENT DATED JULY 22, 1999
NEW ISSUE '
FULL BOOK ENTRY
"BANK QUALIFIED"
See "RATINGS" herein
In the opinion of Akerman, Senterfitt & Eidson, P.A., Bond Counsel to the City, under existing law, (i) assuming
continuing compliance with certain covenants, the interest on the Series 1999 Bonds is excluded from gross income for
federal income tax purposes; and is not an item of tax preference for purposes of the federal alternative minimum tax
imposed on individuals and corporations under the Internal Revenue Code of 1986, as amended; (ii) the Series 1999 Bonds
and the income thereon are exempt from taxation under the laws of the State of Florida, except for estate taxes imposed by
Chapter 198, Florida Statutes, as amended, and net income and franchise taxes imposed by Chapter 220, Florida Statutes,
as amended, on interest, income or profits on debt obligations owned by "corporations", "banks", and "savings associations',
as such terms are defined in said Chapter 220, and (iii) the Series 1999 Bonds are "qualified tax-exempt obligations" for
purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. The interest on the Series 1999 Bonds may
be subject to certain federal taxes imposed only on certain corporations, including the imposition of a corporation alternative
minimum tax on a portion of that interest. For a more complete discussion of tax aspects, see "TAX EXEMPTIONS" herein.
$8,740,000
CITY OF TAMARAC, FLORIDA
Sales Tax Revenue Bonds
Series 1999
Dated: July 15,1999
Due: April 1, 2019
The $8,740,000 Sales Tax Revenue Bonds, Series 1999 (the "Series 1999 Bonds") are being issued by the City of
Tamarac, Florida (the "City") under the authority of Chapter 166, Florida Statutes, Resolution No. 98-156 duly adopted by
the City on May 27, 1998 and Resolution No. 99-192 duly adopted by the City on July 14, 1999 (together, the "Bond
Resolution").
The Series 1999 Bonds shall be dated July 15, 1999. Interest on the Series 1999 Bonds shall be paid semi-annually on
April 1 and October 1 of each year, commencing April 1, 2000. The Series 1999 Bonds are being issued in fully registered
form without coupons in denominations of $5,000 or any integral multiple thereof. When issued, the Series 1999 Bonds
will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ("DTC").
Purchases of beneficial interests in the Series 1999 Bonds will be made in book -entry -only form (without certificates). The
Bank of New York will serve as the initial Paying Agent and Bond Registrar for the Series 1999 Bonds. So long as the
Series 1999 Bonds shall be in book -entry -only form, payment of interest, principal and premium, if any, on the Series 1999
Bonds are payable to Cede & Co., as registered owner thereof, and will he redistributed by DTC and the DTC Participants
to the Beneficial Owners (see "Description of the Series 1999 Bonds - Book -Entry -Only System" herein).
The Series 1999 Bonds are subject to redemption prior to maturity as described herein.
The Series 1999 Bonds and the interest thereon and any additional parity Bonds issued under the Bond Resolution
are revenue obligations of the City payable solely from and secured by a lien on and pledge of the Pledged Revenues as
more fully described herein.
Payment of the principal of and interest on the Series 1999 Bonds when due will be insured by a municipal bond
insurance policy to be issued by Financial Guaranty Insurance Company simultaneously with the delivery of the Series
1999 Bonds.
Financial Guaranty Insurance
Company
... �. .... ...... W .._.� ........,....
The City is not obligated to pay the Series 1999 Bonds or the interest thereon except from the Pledged
Revenues pledged thereto, and the full faith and credit of the City is not pledged for the payment of the
Series 1999 Bonds, and such Bonds do not constitute an indebtedness of the City within the meaning of any
constitutional, statutory, or other provisions or limitations; and the holders shall never have the right to
require or compel the exercise of the ad valorem taxing power of the City, or taxation in any form of any real
or personal property therein, for the payment thereof.
The Series 1999 Bonds are being issued to pay for repair and resurfacing of public roadways and related
improvements within the City and cost of issuance of the Series 1999 Bonds.
THIS COVER PAGE CONTAINS CERTAIN INFORMATION FOR QUICK REFEFENCE ONLY. IT IS NOT A
SUMMARY OF THIS ISSUE. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN
INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION.
MATURITIES, AMOUNTS, INTEREST RATES AND PRICES OR YIELDS, see inside front cover.
The Series 1999 Bonds are offered, in full book -entry form, subject to prior sale when, as and if issued by the City and
subject to the approval of their legality by Akerman, Senterfitt and Eidson, P.A., Orlando, Florida, Bond Counsel and
Disclosure Counsel, and certain other conditions. Certain legal matters will be passed upon for the Underwriter by its
Counsel, Atlas, Pearlman, Trap & Borkson and for the City by Mitchell S. Kraft, Esquire, City Attorney. Public Financial
Management, Inc., Fort Myers, Florida, is acting as Financial Advisor to the City. It is expected that the Series 1999 Bonds
will be available for delivery through DTC in New York, New York on or about August 5, 1999.
First Union Capital Markets Corp.
s
$8,740,000
CITY OF TAMARAC, FLORIDA
Sales Tax Revenue Bonds
Series 1999
MATURITIES-
T N
T PRICES
Maturity
Principal
Interest
Price or
(April l)
AmountF-ft
.ylkm
2000
$280' 000
3.550%
o
3.550/o
2001
290,000
3.900%
3.950%
2002
305,000
4.000%
o
4.050 /o
2003
315,000
4.100%
4.150%
2004
330,000
4.200%
4.250%
2005
345,000
4.300%
o
4.350 /o
2006
355,000
4.400%
4.450%
2007
375,000
4.500%
4,550%
2008
390,000
4.600%
4.650%
2009
410,000
4.700%
o
4.750/o
2010
425,000
4.750%
4.850%
2011
445,000
4.850%
4.950%
2012
470,000
4.900%
5.000%
2013
490,000
5.000%
5.050%
2014
515,000
5.000%
o
S.100/o
2015
540,000
5.100%
5.150%
2016
570,000
5.100%
5.200%
2017
600,000
5.125%
5.230%
$1,290,000 Term Bond maturing April 1, 2019 and bearing interest at a rate of 5.125% at a yield of 5.270%..
(accrued interest to be added)
t Ir
CITY OF TAMARAC, FLORIDA
OFFICIALS
Joe Schreiber; Mayor
Larry Mishkin, Vice Mayor
Edward C. Portner Marc L. Sultanof Karen L. Roberts
Commissioner Commissioner Commissioner
ADMINISTRATION
Margaret A. McGarrity, CPA Robert S. Noe, Jr. Mitchell S. Kraft
Director of Finance City Manager City Attorney
Carol Gold, CMCIAAE Tim Hemstreet William F. Nealon Jr., CPA
City Clerk Assistant City Manager Controller
INDEPENDENT AUDITOR
Madsen, Sapp, Mena Rodriguez and Company, P.A.
Plantation, Florida
BOND COUNSEL/DISCLOSURE COUNSEL
Akerman, Senterfitt & Eidson, P.A.
Orlando, Florida
FINANCIAL ADVISOR
Public Financial Management, Inc.
Fort Myers, Florida
No dealer, broker, salesman or other person has been authorized by the City or the Underwriter to
make any representations, other than those contained in this Official Statement in connection with
the offering contained herein, and if given or made, such other information or representations must
not be relied upon as having been authorized by any of the foregoing. This Official Statement does
not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the
Series 1999 Bonds by any person in any jurisdiction in which it is unlawful for such person to make
such offer, solicitation or sale. The information contained in this Official Statement has been
obtained from public documents, records and other sources considered to be reliable and, while not
guaranteed as to the completeness or accuracy, is believed to be correct. Any statement in this
Official Statement involving estimates, assumptions and opinions, whether or not so expressly
stated, are intended as such and are not to be construed as representations of fact, and the
Underwriter, the Financial Advisors and the City expressly make"`no' representation that such
estimates, assumptions and opinions will be realized or fulfilled.' Any information, estimates,
assumption and matters of opinion contained in this Official Statement are subject to change without
notice, as neither the delivery of this Official Statement, nor any sale hereunder, shall, under an
circumstances, create any implication that there has been no change in.tl e'affairs of the City or with
respect to the City since the date hereof.
THE SERIES 1999 BONDS HAVE NOT BEEN REGISTERED UNDER'THE SECURITIES ACT
OF 1933, AS AMENDED, NOR HAVE THE BOND RESOLUTIONS $EEN QUALIFIED UNDER
THE TRUST INDENTURE ACT OF 1939, AS AMENDED, IN RELIANCE UPON EXEMPTION
CONTAINED IN SUCH ACTS. THE EXEMPTION FRO ' ''REGISTRATION OR
QUALIFICATION IN THE
STATES CANNOT BE . 'REGARDED''REGISTRATION
RECOMMENDATION THEREOF. NO STATE OR ANY STATE AGENCY HAS PASSED
UPON THE MERITS OF THE SERIES 1999 BONDS OR THE ACCURACY OR
COMPLETENESS OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE
CONTRARY MAY BE A CRIMINAL OFFENSE.
If
BLE OF CONTENTS
INTRODUCTION............................................................. 1
THECITY ............................. ............ 1
DESCRIPTION OF THE SERIES 1999 BONDS_ .. ....... ........... . 2
General ....................... ........................2
Book -Entry -Only System ..................................................... 2
Redemntion...............................................................5
SECURITY FOR THE BONDS ....... . .......................... ........... 7
General...................................................................7
Half -Cent Sales Tax Revenues ................................................
7
Debt Service Reserve Account ................. ............... ...... ....
8
Additional Parity Bonds ......................................... .........
.9
FLOW OF FUNDS...........................................................10
HISTORICAL HALF -CENT SALES TAX REVENUES .............................
13
PROJECTED DEBT SERVICE COVERAGE ......................................
14
BOND SERVICE SCHEDULE .. ...... ...................... ....... .....
14
MUNICIPAL BOND INSURANCE ........................... .... ...... ...
15
DEBT SERVICE RESERVE FUND POLICY ........................ .... ...
17
SOURCES AND USES OF FUNDS ............. ........... ......... .... .
19
THE CAPITAL PROJECTS .............. ..................... ... .......
19
LEGAL MATTERS ......................... ............ .. .. ...
19
LITIGATION .... .............................. . .......... ..........20
ENFORCEABILITY OF REMEDIES ....... ........... ............. ..... .
20
TAXEXEMPTION ......................... ................ ............ .20
Tax. Treatment of Original Issue Discount ......... ............ ... .
22
RATINGS .. ..................... .. ............ ... ... .22
UNDERWRITING ................. ......... ... .... .....
23
VALIDATION .. ................ .... .........k..... .... ... ... .23
FINANCIAL STATEMENTS .......... ...... .... ........... ... .....
23
FINANCIAL ADVISOR .....................................................23
CONTINUING DISCLOSURE ........................................... ...
24
YEAR 2000ISSUES..........................................................24
The City of Tamarac ... ...................... ....... ...... .. .
24
PayingAgent ....... .... .......... .......... . .... .. •
25
The Depository Trust Company .... ............... .......... .. .
26
DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS ...............
27
AUTHORIZATION CONCERNING OFFICIAL STATEMENT .......................
27
MISCELLANEOUS................................:.........................27
CONCLUDING STATEMENT ........................... V� :...................
28
r
r
APPENDIX A -
Information Regarding the City of Tamarac, Florida and Broward County, Florida
APPENDIX B -
The City of Tamarac's Financial Statements
APPENDIX C -
The Bond Resolution
APPENDIX D -
Form of Opinion of Bond Counsel
APPENDIX E -
Continuing Disclosure Commitment
APPENDIX F -
Specimen Reserve Fund Policy
APPENDIX G -
Specimen Bond Insurance Policy
n--
ii
n
OFFICIAL STATEMENT
relating to
$8,740,000
CITY OF TAMARAC, FLORIDA
Sales Tax Revenue Bonds
Series 1999
INTRODUCTION
The purpose of this Official Statement; which includes the cover page and the appendices, is to,
furnish information with respect to the sale of $8,740,000 aggregate principal amount of Sales Tax
Revenue Bonds, Series 1999 (the "Series 1999 Bonds") of the City of Tamarac, Florida (the "City"),
including the sources of funds pledged for the payment thereof.
The Series 1999 Bonds are being issued pursuant to and under the authority of the Constitution and
laws of the State of Florida, including without limitation, Chapter. 166, Florida Statutes, as amended,,
and, to the extent not inconsistent with and not repealed by the provisions of Section 166.021,
Florida Statutes, Chapter 218, Florida Statutes, as amended, Chapter 212, Florida Statutes, as
amended. The Bonds are also being issued pursuant to Resolution No. 98-156 duly adopted by the
City on May 27, 1998 and. Resolution No. 99-�192 duly adopted by the City on July 14, 1999
(together, the 'Bond Resolution") and other applicable provisions of law. For a complete description
of the terms and conditions of the Series 1999 Bonds, see "APPENDIX C - The Bond Resolution".
All capitalized terms in this Official Statement shall be as defined herein or in the Bond Resolution,
y description of the Bond Resolution and the
documents authorizing and securing the same and the information from reports contained herein.. do
not purport to be comprehensive or definitive. All references herein tp such documents and reports
are qualified in their entirety by reference to such documents.' Copies of documents and reports not
reproduced in this Official Statement and further information which may be desired may be obtained
from Margaret A. McGarrity, Director of Finance, City of Tamarac, Florida, (954) 724-1310.
THE CITY
The City, located in Broward County, Florida, contains 12.1 square miles and had an estimated
population of 51,488 as of 1998. The City was incorporated in 1963 and operates under its own
charter. The governmental body consists of a five member commission of which four members are
elected by district, and a mayor is elected at large. The City provides a full range of municipal
services, including police and fire protection, highways and streets planning, zoning, parks,
recreation, water, sewer, sanitation and general administrative services.
See Appendix A herein for financial, demographic, statistical and other information regarding the
City and Broward County, Florida.
DESCRIPTION OF THE SERIES 1999 BONDS
Genera
The Series 1999 Bonds shall be dated July 15, 1999 and shall bear interest as set forth on the inside
cover page of this Official Statement. Interest on the Series 1999 Bonds is payable commencing
April 1, 2000 and semiannually thereafter on April 1 and October 1 of each year.
The Series 1999 Bonds will be issued as fully registered bonds in denominations of $5,000 or any
integral multiple thereof, and when issued, will be registered in the name of Cede & Co., as
registered owner and nominee of The Depository Trust Company, New York, New York ("DTC").
Purchase of beneficial interests in the Series 1999 Bonds will be made in book -entry form (without
certificates) in the denominations of $5,000 or any integral multiple thereof
So long as the Series 1999 Bonds shall be in book -entry -only form, the principal of, redemption
Premium, if any, and interest on the Series 1999 Bonds will be payable to Cede & Co., as registered
owner thereof, and will be distributed by DTC and the Participants to the Beneficial Owners (as such
terms are hereinafter defined) (see "DESCRIPTION OF THE Series 1999 BONDS - Book -Entry -
Only System" herein).
The Depository Trust Company ("DTC"), New York, New York, will initially act as securities
depository :For the Series 1999 Bonds. The Series 1999 Bonds will be issued as fully -registered
bonds registered in the name of Cede & Co., as DTC's partnership nominee: One fully -registered
bond for each maturity will be issued for the Series 1999 Bonds, eachin the aggregate principal
amount of such maturity, and will be deposited with DTC. Stop -transfer instructions will be issued
to the City as Paying Agent. Certain portions of the following information has been finnished by
DTC.
So long as Cede & Co. is the registered owner of the Series 1999 Bonds, as partnership nominee of
DTC, references in this Official Statement to the owners of the Series 1999 Bonds or registered
owners of the Series 1999 Bonds shall mean Cede & Co. and shall not mean the Beneficial Owners
(hereinafter defined) of the Series 1999 Bonds.
DTC is a limited -purpose trust company organized under the New York Banking Law, a "banking
organization" within the meaning of the New York Banking Law, a member of the Federal Reserve
System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code,
and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities
Exchange Act of 1934, as amended. DTC holds securities#hat its participants ("Participants")
deposit with DTC- DTC also facilitates the settlement among Participants of securities transactions,
j such as transfers and pledges, in deposited securities through electronic computerized book -entry
changes in Participants' accounts, thereby eliminating the need for physical movement of securities
certificates. Direct Participants that are hereafter referred to as "Direct Participants" include
2
DESCRIPTION OF THE SERIES 1999 BONDS
The Series 1999 Bonds shall be dated July 15, 1999 and shall bear interest as set forth on the inside
cover page of this Official Statement. Interest on the Series 1999 Bonds is payable commencing
April 1, 2000 and semiannually thereafter on April 1 and October l of each year.
The Series 1999 Bonds will be issued as fully registered bonds in denominations of $5,000 or any
integral multiple thereof, and when issued, will be registered in the name of Cede & Co., as
registered owner and nominee of The Depository Trust Company, New York, New York (�� g
DTC ),
Purchase of beneficial interests in the Series 1999 Bonds will be made in book -entry form (without
certificates) in the denominations of $5,000 or any integral multiple thereof.
So long as the Series 1999 Bonds shall be in book -entry -only form, the principal of, redemption
Premium, if any, and interest on the Series 1999 Bonds will be payable to Cede & Co., as registered
owner thereof, and will be distributed by DTC and the Participants to the Beneficial Owners (as such
terms are hereinafter defined) (see "DESCRIPTION OF THE Series 1999 BONDS - Book -Entry -
Only System" herein).
B n.1
The Depository Trust Company ("DTC"), New York, New York, will initially act as securities
depository for the Series 1999 Bonds. The Series 1999 Bonds will be issued as fully -registered
bonds registered in the name of Cede & Co., as DTC's partnership nominee.- One fully -registered
bond for each maturity will be issued for the Series 1999 Bonds, each in the aggregate principal
amount of such maturity, and will be deposited with DTC. Stop -transfer instructions will be issued
to the City as Paying Agent. Certain portions of the following information has been furnished by
DTC.
So long as Cede & Co. is the registered owner of the Series 1999 Bonds, as partnership nominee of
DTC, references in this Official Statement to the owners of the Series 1999 Bonds or registered
owners of the Series 1999 Bonds shall mean Cede & Co. and shall not mean the Beneficial Owners
(hereinafter defined) of the Series 1999 Bonds.
DTC is a limited -purpose trust company organized under the New York Banking Law, a "banking
organization" within the meaning of the New York Banking Law, a member of the Federal Reserve
System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code,
and a' "clearing agency" registered pursuant to the provisions of Section 17A of the Securities
Exchange Act of 1934, as amended. DTC holds securities ghat its participants ("Participants")
deposit with DTC. DTC also facilitates the settlement among Participants of securities transactions,
such as transfers and pledges, in deposited securities through electronic computerized book -entry
changes in Participants' accounts, thereby eliminating the need for physical movement of securities
certificates. Direct Participants that are hereafter referred to as "Direct Participants" include
2
e .t
securities brokers and dealers, banks, trust companies, clearing corporations and certain'' other
organizations. DTC is owned by a number of its Direct Participants and by the New York Stock
Exchange, Inc., the American Stock Exchange, Inc., and the National Association of Securities
Dealers, Inc. Access'to the DTC system is also available to others such as securities brokers and
dealers, banks, and trust companies that clear through or maintain a custodial relationship with a
Direct Participant, either directlyr indirectly ("Indirect Participants"). The rules applicable to DTC
and its Participants are on file with the Securities and Exchange Commission:
Purchases of Series 1999 Bonds under the DTC system must be made by or through. Direct
Participants, which will receive a credit for the Series 1999 Bonds on DTC's records. The ownership
interest of each actual purchaser of each Series 1999 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, but Beneficial Owners are expected to receive 'written
confirmations providing details of the transaction, as well as periodic statements of their holdings,
from the Direct or Indirect Participant through which the Beneficial Owner entered into the
transaction. Transfers of ownership interests in the Series 1999 Bonds are to be accomplished by
entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners
will not receive certificates representing their ownership interest in the Series 1999 Bonds, except
in the event that use of the book -entry system for the Series 1999 Bonds is discontinued.
DTC may resign as Securities Depository for the Series 1999 Bonds by giving notice to the City and
discharging its responsibilities under applicable law. If DTC is incapable of discharging its duties
or is no longer qualified to perform book -entry services; the City shall identify another qualified
securities depository to replace DTC. If the City is unable to identify another qualified securities
depository, the City will authenticate and deliver replacement Series 1999 Bonds in the form of fully
registered certificates. The City may decide to discontinue use of the system of book -entry transfers
through DTC (or a successor Securities Depository). In that event, the City will authenticate and
deliver replacement Series 1999 Bonds in the form of fully registered certificates. If no qualified
Securities Depository is the registered owner of the Series 1999 Bonds, the Beneficial Owners will
be paid by the City by check for the interest thereon, mailed to the person registered on the'Record
Date as owner of the Series 1999 Bonds and upon presentation at the office of the City's Director of
Finance for principal of the Series 1999 Bonds.
To facilitate subsequent transfers, all Series 1999 Bonds deposited by Participants with DTC are
registered in the name of DTC's partnership nominee, Cede & Co. The deposit of Series 1999 Bonds
with DTC and their registration in the name of Cede & Co. effect no change in beneficial ownership.
DTC has no knowledge of the actual Beneficial Owners of the Series 1999 Bonds; DTC's records
reflect only the identity of the Direct Participants to whose accounts such Series 1999. Bonds are
credited, which may or may not be the Beneficial Owners. The Partici*ts will remain responsible
for keeping account of their holdings on behalf of their customers.
For every transfer and exchange of the Series 1999 Bonds, the Beneficial Owner may be charged a
sum sufficient to cover any tax, fee or other governmental charge that may be imposed in relation
thereto.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, and by Direct Participants and Indirect Participants to. Beneficial
Owners will be governed by arrangements among them, subject to any statutory or regulatory
requirements as may be in effect from time to time. Redemption notices shall be sent to Cede & Co.
If less than all of the Series 1999 Bonds within an issue are being redeemed, DTC's
determine by lot the amount of the interest of each Direct Participant in such issue to be redee is to
Neither DTC nor Cede & Co. will consent or vote with respect to the Series 1999 Bonds Under its
usual procedures, DTC mails an omnibus proxy to the City as soon as possible after the record date•
The omnibus proxy assigns Cede & CO.'s consenting or voting rights to those Direct. Participants to
whose accounts the Series 1999 Bonds. are credited on the record date (identified in a listing to the omnibus proxy)• g attached.
Principal and interest payments on the Series 1999 Bonds will be made to DTC. DTC'spractice`
to credit Direct Participants' accounts on each payment date in accordance with rpecte
holdings shown on DTC's records unless DTC has reason to believe that it will not receive epaymente
on such payment date. Payments by Participants to Beneficial Owners will be governed g
instructions and custom g d by standing
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
not of DTC or the City, subject to any statutory or regulatory requirements as may beclpant and.
time to time. Payment ofprincipal and interest to DTC is the responsibility of the City,�disbursen effect fre t
Of such payments to Direct Participants shall be the responsibility of DTC and disbursement
Payments to the Beneficial Owners shall be the responsibility of Direct and Indirect Participants.
The City cannot and, does not give any assurances that DTC, Participants or others will distri
Payments of principal of or interest on, or any premium on the Series 1999 Bonds paid to DTC
bute
or
its nominee, as the registered owner, or any redemption (if applicable) or" other notices, to the
Beneficial Owner or that they will do so on a timely basis or will service and act in a manner
described in this Official Statement. The. City is not responsible or liable for the failure of DTC
Participants or others to make any payment or give any notice to a Beneficial Owner in respect
the Series 1999 Bonds or any error, or delay relating my noti
p ct of
When reference is made to any action which is required or permitted to be taken b
Owners, such reference shall only relate to those permitted to act Y the Beneficial
on behalf of such Beneficial Owners for such purposes. When not ces arte, i ation or otherwise)
by the City only to DTC. g , they shall be sent
Bonds at any time by giving reasonable notice to the City. UndeDTC may discontinue providing its services as securities depositor such circumstances, in the event
ry with respect to the. Series 1999
that a successor securities depository is not obtained, the Series 1999 Bonds are required
printed and delivered. The City may decide to discontinue use of the system of book-etry transfers
printed and delivered. �t�;
through DTC (or a successor securities depository). In that ethe Series 1999 Bonds will be
In the event that such book -entry only system is discontinued, the following provisions will apply:
Payments of interest on the Series 1999 Bonds shall be made by the City on each Interest Payment
Date to the person appearing as the registered owner thereof on the bond registration books
maintained by the City as of the close of business on the fifteenth day of the calendar month
preceding the applicable Interest Payment Date (or, if interest on the Series 1999 Bonds is in default,
a Special Record Date established pursuant to the Bond Resolution ), by check mailed to such
registered owner at his address as it appears on such registration books or, at the prior written request
and expense of an owner of $.1,000,000 in aggregate principal amount of Series 1999 Bonds, by bank.
wire transfer to a domestic bank account; principal of and premium, if any, on the Series 1999 Bonds
is payable upon presentation of the Series 1999 Bonds to the City; and the Series 1999 Bonds may
be transferred or exchanged, by the City upon the payment of any transfer tax, fee or other
governmental charges required to be paid with respect to such transfer or exchange and in
accordance with the provisions of the Bond Resolution.
THE INFORMATION IN THIS SECTION CONCERNING DTC AND DTC'S BOOK -ENTRY
SYSTEM. HAS BEEN OBTAINED FROM SOURCES. THAT THE CITY BELIEVES TO BE
RELIABLE, BUT THE -CITY -TAKES NO RESPONSIBILITY FOR THE ACCURACY.' THEREOF.
BedQmi2tion
The Series 1999 Bonds are,subject to redemption prior to maturity as described below.
i
The Series 1999 Bonds maturing on April 1, 2010 and thereafter shall be subject to redemption prior
to their maturity at the optipn,of the City on or after April 1, 2009, as a whole or in part at any time
(selected by the City, m its discretion,, among maturities and by lot within a maturity); at the.
redemption prices (expresso.as percentages of principalamount) set forth in the following table,
plus accrued interest.from the most recent: interest payment date to the date of,redemption.
Redemption Period RedemRtion
(JJQt_h Dates Zn lusiYe) Price
April 1, 2009 through March 31, 2010 10.1
April 1, 2010 and thereafter. 100%
Mandatory Redemption
The Series 1999 Bonds maturing in the year 2019.(the "2019 Term Bonds") shall be subject to
mandatory redemption (except for the final installment due at maturity, which,is not a redemption)
in part by the City at a redemption price equal to the unpaid principal amount thereof plus accrued
interest thereon to the redemption date, on April 1 in the years and in the-.irincipal amounts set forth
below.
5
Ili
2019 Term Bonds
Year Amount
2018 $630,000.
2019 660,000*
* Maturity
ti
At least thirty (30) days before the redemption date, a notice of any such redemption, either in whole
or in part, shall be mailed, first class mail, postage prepaid, to all registered owners of Series r1999
Bonds to be redeemed at their addresses as they appear on the registration books. Failure to mail
any redemption notice to any Bondholder, or any defect in any notice so,mailed, shall not affect the
validity of the proceedings for the redemption of the Series 1999 Bonds of any other Holder. Each
such notice shall set forth the date fixed for redemption, the redemption price to be paid and, if less
than all of the Series 1999 Bonds then outstanding shall be called for redemption, the numbers of
such Series 1999 Bonds. Each notice of redemption mailed to a registered owner of a Bond to be
redeemed shall, if less than the entire principal amount thereof is to be redeemed, also state the
principal amount thereof to be redeemed and that such Series 1999 Bond must be surrendered to the
Bond Registrar in exchange for the payment of the principal amount thereof -to be redeemed and the
issuance of a new Series 1999 Bond or Series 1999 Bonds equaling inprincipal amount that portion
of the principal sum not to be redeemed of the Series 1999 Bonds to be surrendered.
While Cede & Co. is the registered owner of the Series 1999 Bonds, notices of redemption with
respect to the Series 1999 Bonds shall be mailed solely to Cede & Co.'as the registered owner
thereof.
Notice having been given in the manner provided above,"the Series 1999 Bonds or portions of Series
1999 Bonds so called for redemption shall, on the redemption date designated in such notice, become
and be due and payable at the redemption price provided for redemption for 'such Series '1999 Bonds
or portions of Series 1999 Bonds on such date. On the date so designated for redemption, interest
on the Series 1999 Bonds or portions of Series 1999 Bonds so called for redemption shall cease to
accrue, such Series 1999 Bonds and portions of Series 1999 Bonds shall cease to be entitled to any
lien, benefit or security under the Bond Resolution and shall be deemed paid under the Bond
Resolution, and the registered owners of such Series 1999 Bonds or portions of Series 1999 Bonds
shall have no rights except to receive payment of the redemption price.
6
f
SECURITY FOR THE BONDS
General ..
The Bonds are limited obligations of the City payable solely from and secured by a lien on and
pledge of the Half -Cent Sales Tax Revenues levied pursuant to Chapter 212, Part I, Florida Statutes,
as amended and distributed pursuant to Chapter 218, Part VI, Florida Statutes, as amended (the
"Half -Cent Sales Tax Revenues").
THE. SERIES 1999 BONDS AND THE INTEREST THEREON DO NOT CONSTITUTE A
GENERAL INDEBTEDNESS' OF THE CITY OR A PLEDGE OF ITS FAITH AND CREDIT,
BUT ARE PAYABLE 'SOLELY FROM THE PLEDGED REVENUES IN THE MANNER
PROVIDED IN THE .BOND -RESOLUTION. NO OWNER OF ANY OF THE SERIES 1999
BONDS SHALL EVER 'HAVE THE RIGHT TO COMPEL THE EXERCISE OF THE AD
VALOREM TAXING POWER OF THE'CITY TO PAY THE SERIES 1999 'BONDS' OR
INTEREST THEREON FROM 'ANY MONIES ' OF THE CITY EXCEPT THE PLEDGED
REVENUES.
R
Pursuant to Chapter 212, Part I, Florida Statutes, as amended, the State of Florida is currently
authorized to levy and collect a tax on sales, use, rentals, admissions and other transactions,
including'a sales tax of'six percent on, among other things, °the- sales price of each item or article of
tangible personal property sold at'retailin the State of Florida, subject to certain exceptions and
dealer allowances as set forth"in Chapter 212, Part I, Florida Statutes, as amended (the "Florida
General Sales Tax"). The proceeds of the Florida General Sales Tax are allocated, in part, into the
Locale Government Half -Cent Sales Tax Clearing Trust Fund pursuant to Section 212.20, Florida
Statutes, as amended.' Proceeds in the Local Government Half -Cent Sales Tax Clearing Trust Fund
are appropriated to the Department of Revenue which distributes the funds to those Florida counties
and municipalities that meet the eligibility requirement pursuant to Section 218.23, Florida Statutes,
as amended. Each eligible municipality receives a portion of the funds in the Local Government
Half -Cent Clearing. Trust. Funds attributable to taxes collected within its county according to the
following formula:
Each Municipality Share
of the Local Government
Half -Cent Clearing Trust municipality 12opulgfiffl
Fund (total county + (2/3 incorporated
population) area population)
Population is the latest official state estimate of population certified prior to the beginning of the
local, government fiscal year.
01
Because the formula for determining the amount of the Half -Cent Sales Tax distributed to the City
is based in part upon the population within incorporated areas of Broward County, Florida,.
aggressive annexation policies by the municipalities within Broward County could affect the amount
of the half -cent sales tax distributed to the City, as could high growth in the incorporated areas
without corresponding growth in the City.
Pursuant to Chapter 218, Florida Statutes, as amended, the proceeds of the Half -Cent Sales Tax may
be expended by a municipality only on municipality -wide programs or for municipality -wide
property tax or municipal utility tax relief. Chapter 218, Florida Statutes, as amended, further
authorizes a municipality to pledge proceeds of the Half -Cent Sales Tax for,the payment of principal
and interest on any capital project.
The City is currently eligible to receive a portion of the proceeds in the, Half Cent Sales Tax Clearing
Trust Fund pursuant to the distribution formula described above. The City has covenanted in its
Bond Resolution that as long as any of the principal of or interest on any. of the Series 1999 Bonds
are outstanding and unpaid, or payment thereof not duly provided for, it will not repeal any of the
ordinances or resolutions, if any, pursuant to which it levies, collects or receives the Pledged
Revenues and will not amend or modify said ordinances or resolutions in any manner so as to impair
or adversely affect in any manner the pledge of Pledged Revenues made herein, or the rights of
Holders of Series 1999 Bonds.
The City has further covenanted in its Bond Resolution that if, in any Fiscal Year, Pledged Revenues
are less than one hundred twenty-five percent (125%) of the Annual Deb . Service Requirement for.
all Bonds Outstanding, it shall pledge, to the extent legally available, Additional Pledged Revenues,
so that the Pledged Revenues shall be adequate in the next succeeding Fiscal Year to pay at least one
hundred twenty-five percent (125%) of the Annual Debt Service Requirement for all, Bonds
outstanding, and that such Pledged Revenues shall be sufficient to make:all,of the other payments
provided herein as the same become due in such Fiscal Year.
Debt Service Reserve Ar.cQunt
The Bond Resolution provides for the establishment and maintenance of a Debt Service Reserve
Account and requires that the City initially deposit therein an amount equal to the Reserve
Requirement. The Bond Resolution provides that the Reserve Requirement will be equal to the
lesser of (i) Maximum Annual Debt Service, or (ii) ten percent (10%) of the original principal
amount of the Bonds, or (iii) one hundred twenty-five percent (125%) of the Average Annual Debt
Service Requirement.
In lieu of the required deposits into the Debt Service Reserve Account, the Bond Resolution provides
that the City may cause to be deposited into the Debt Service Reserve Account a Reserve Account
Insurance Policy or a Reserve Account Letter of Credit for the benefit of the Bondholders in an
amount equal to the difference between the Reserve Requirement and the sums then on deposit in
the Debt Service Reserve Account, if any, which Reserve Account Insurance Policy or Reserve
Account Letter of Credit shall be payable on any Interest Payment Date on which a deficiency exists
8
which cannot be cured by moneys in any other fund or account held pursuant to the Bond Resolution
and available for such purpose. If a disbursement is made under the Reserve Account Insurance
Policy or the Reserve Account Letter of Credit, the City shall be obligated to either reinstate the
maximum limits of such Reserve Account Insurance Policy or Reserve Account Letter of Credit
immediately following such disbursement so that amounts on deposit therein equal the Reserve
amount of the disbursement made under such Reserve Account Insurance Policy or Reserve Account
Requirement, or to deposit into the Debt Service Reserve Account from the Revenues, funds in the
Letter of Credit, in twelve (12) equal monthly installments.
The City will, on the date of the issuance of the Series 1999 Bonds, deposit a reserve account
insurance policy issued by Financial Guaranty Insurance Company (the "Surety Provider") to the
Debt Service Reserve Account in satisfaction of the Reserve Requirement for the Series 1999 Bonds
full
(the "Reserve Policy"). The premium on the Reserve Policy will be the issuance and delivery of the Series 1999 Bonds. The Reserve Policy Provides s that upon the later
of the Business Day `next following the day on which the Surety Provider shall have received a
Notice of Nonpayment from the Paying Agent or the date such principal and interest is due the'
Surety Provider will promptly deposit funds with the Paying Agent sufficient to enable the Paying
Agent to make such payments due on the Series 1999 Bonds, but in no event exceeciin the
Maximum, as defined in the Reserve Policy, g
Pursuant to the terms of the Reserve Policy, the Surety Bond Coverage is au
the extent of each payment made by the Surety Provider under the terms of the Reservley. P reduced
Band
the City is required to reimburse the Surety Provider for any draws under the Reserve Policy. Upon
such reimbursement, the Reserve Policy is reinstated to the extent of each principal reimbursement.
The reimbursement obligation of the City is subordinate to the City's obligations with respect to
Series 1999 Bonds, p the
Monies in the Debt Service Reserve Account shall be used only for the purpose
of into the Interest Account, Principal Account and Bond Redemption Account when the monies
in the
Revenue Account are insufficient therefor. k in the
ems• � •, � ;�
No Additional Parity Bonds shall be issued unless among other conditionsthe following
complied with: , g are
The amount of the Pledged Revenues during the immediate preceding Fiscal Year or any twelve 12
consecutive months selected by the City of the twerit,_ four (24) months immediate) ( )
issuance of said Additional Parity Bonds, adjusted as provided in the Bond Resolution, certifiedase
by the City's Director of Finance, will be equal to one hundred twenty-five percent (125% of the
Maximum Annual Debt Service on (1) the Bonds originally issued pursuant to the Bond Resolution
then Outstanding, (2) any additional parity Bonds theretofore issued and then Outstandin and
(3) the additional parity Bonds then proposed to be issued; provided that for the g>
determining the Maximum Annual Debt Service, the interest rate on Variable Rate Bonds shall
of
the maximum interest rate provided therefor in the proceedings authorizing such Bonds, all be
9
The Pledged Revenues calculated pursuant to the foregoing paragraph may be adjusted, at the oP do
of the City, as follows:
If the City, prior to the issuance of the proposed Additional Parity Bonds, shall have increased an,
rates fees or charges which constitute a portion of Pledged Revenues, the Pledged Revenues for the
twelve (12) consecutive months immediately preceding the issuance of said Additional Parity Bonds
shall be adjusted to show the Pledged Revenues which would have been derived in such twelve 12
consecutive months as if such increased Pledged Revenues had been in effect during all of ucl'
twelve (12) consecutive months.
The term "Additional Parity Bonds" as used in the Bond Resolution shall be deemed to mean
additional obligations evidenced by Bonds issued under the provision and within the limitat' f
the Bond Resolution payable from the Pledged Revenues on a parity with Bonds originally
authorized and issued pursuant to the Bond Resolution. Such Bonds shall be deemed to ha a been
issued pursuant to the Bond Resolution the same as the Bonds originally authorized and issued
pursuant to the Bond Resolution and all of the covenants and other provisions of the Bond
Resolution (except as to details of such Bonds evidencing such additional parity obligations
inconsistent therewith) shall be for the equal benefit, protection and security of the holders of anyBonds evidencing additional obligations subsequently issued within the limitations of and in
compliance with the Bond Resolution. All of such Bonds, regardless of the time or times of their
issuance shall rank equally with respect to their lien on the Pledged Revenues and their sources and
security for payment therefrom without preference of any Bonds over any other.
The term "Additional Parity Bonds" as used in the Bond Resolution shall not be deem
ed o include
bonds, notes, certificates or other obligations subsequently issued under the terms of the Bond
Resolution, the lien of which on the Pledged. Revenues is subject to the prior and superior lien on
the Pledged Revenues of Bonds issued pursuant to the Bond Resolution, and the City shall not issue
any obligations whatsoever payable from the Pledged Revenues, which rank equally as to lien and
source and security for their payment from such Pledged Revenues with Bonds issued
the Bond Resolution except in the manner and under the conditions provided in the Bond Resolution.
FLOW OF FUNDS
All Pledged Revenues shall be deposited into the Revenue Account. The monies in the Revenue
Account are to be applied monthly as follows:
(a) Pledged Revenues shall first be used, to the full extent necessary, for deposit into the Interest
Account in the Sinking Fund, on the twenty-fifth (25th) day of each month, beginningwith
the twenty-fifth (25th) day of the first full calendar month following the date on which any
or all of the Bonds are delivered to the purchasers thereof, such sums as shall be sufficient
11
to pay one -sixth of the interest becoming due on the!8onds on the next semi-annual Interest
Payment Date, provided, however, that such monthly deposits for interest shall not be
required to be made into the Interest Account to the extent that money on deposit therein is
sufficient for such purpose.
10
(b) (1) Pledged. Revenues shall next be used, to the full extent necessary for deposit in the
Principal Account on the twenty-fifth (25th) day of each month in each year, one -twelfth
(1/12th) of the principal amount of the Serial Bonds which will mature and become due
on such annual maturity dates, beginning on such dates at least one year. prior to such
maturity dates, as shall hereafter be determined by subsequent proceedings of the City;
provided, however, that such monthly deposits for principal shall not be required to be
made into the Principal Account to the extent that money on deposit therein is sufficient
for such purpose.
(2) Pledged Revenues shall next be used, to the full extent necessary, for deposit into the
Bond Redemption Account on the twenty-fifth (25th) day of each month in each year,
one-twelfth:(1/12th) of the principal amount of the installment coming dueinthe next
sinking fund payment date, beginning at least one year prior to the first such sinking fund
payment date, in such amount and in each year as may be required for the payment of the
principal amount of Term Bonds payable from the Bond Redemption Account, as shall
hereafter be determined by subsequent proceedings of the City.
The moneys in the Bond Redemption Account shall be used solely for the purchase or
redemption of the Term Bonds payable therefrom. If, by the application of moneys in the
Bond Redemption Account, the City shall purchase or call for redemption in any year Term
Bonds in excess of the installment requirement for such year, such excess of Term; Bonds so
purchased or redeemed shall be credited in such manner and at such times as the Finance
Director of the City shall determine over the remaining installment payment dates.
No distinction or preference shall exist in the use of the moneys on deposit in the Revenue
Account for payment into the Interest Account, the Principal. Account and the Bond
Redemption Account, such accounts being on a parity with each other as to payment from
the Revenue Account.
(c) Revenues shall next be used, to the full extent necessary, for deposits into the Debt
Service Reserve Account on the twenty-fifth (25th) day of each month in each year,
beginning with the twenty-fifth (25th) day of the first full calendar month following the
date on which any or all of the Bonds issued under the Bond Resolution are delivered to
the purchasers thereof, such sums as shall be at least sufficient to pay an amount equal
to one -twelfth (1/12th) of the difference between the amount on deposit in the Debt
Service Reserve Account and the Reserve Requirement; provided, further, that no
payments shall be required to be made into the Debt Service Reserve Account whenever
and as long as the amount deposited therein (including any Reserve Account Insurance
Policy or Reserve Account Letter of Credit) shall be equal to the Reserve Requirement.
Notwithstanding the foregoing provisions, in lieu of the required deposits of Revenues into
the Debt Service Reserve. Account, the City may cause to be deposited into the Debt Service
Reserve Account a Reserve Account Insurance Policy or a Reserve Account Letter of Credit
for the benefit of the Bondholders in an amount equal to the difference between the Reserve
Requirement and the sums then on deposit in the Debt Service Reserve Account, if any,
which Reserve Account Insurance Policy or Reserve Account Letter of Credit shall be
payable or available to be drawn upon, as the case may be, upon the giving of notice as
required thereunder) on any Interest Payment Date on which a deficiency exists which cannot
be cured by moneys in any other fund or account held pursuant to the Bond Resolution and
available for such purpose. If a disbursement is made under the Reserve Account Insurance
Policy or the Reserve Account Letter of Credit, the City shall be obligated to either reinstate
the maximum limits of such Reserve Account Insurance Policy or Reserve Account Letter
of Credit immediately following such disbursement so that amounts on deposit therein equal
the Reserve Requirement, or to deposit into the Debt Service Reserve Account from the
Pledged Revenues, as provided in the Bond Resolution, funds in the amount of the
disbursement made under such Reserve Account Insurance Policy or Reserve Account Letter
of Credit, in twelve (12) equal monthly installments as provided above.
In the event that any moneys shall be withdrawn from the Debt Service Reserve Account for
payments into the Interest Account, Principal Account and Bond Redemption Account, such
withdrawals shall be subsequently restored from the Pledged Revenues available after all
required payments have been made into the Interest Account, Principal Account and Bond
Redemption Account, including any deficiencies for prior payments unless restored by the
reinstatement of the maximum limits of a Reserve Account Insurance Policy or Reserve
Account Letter of Credit.
Moneys in the Debt Service Reserve Account shall be used only for the purpose of making
payments into the Interest Account, Principal Account and Bond Redemption Account when
the moneys in the Revenue Account are insufficient therefor.
The Debt Service Reserve Account shall be valued at least once in each Fiscal Year.
(d) Pledged Revenues shall next be used for the payment of any subordinated obligations
issued by the City in accordance with the Bond Resolution, which subordinate
obligations shall have such lien on the Pledged" Revenues as the City shall determine in
the proceedings authorizing the issuance of such subordinated obligations.
(e) After the twenty-fifth (25th) day of each month, any moneys remaining in the Revenue
Account, after all required current payments into the Interest Account, the Principal
Account, the Bond Redemption Account, and the Debt Service Reserve Account,
including any deficiencies for prior payments, have been made in full, as provided in the
Bond Resolution, shall be withdrawn from the Revenue Account, transferred to the
general fund of the City and used by the City for any lawful purpose, but no moneys in
the Revenue Account shall ever be used for any such purpose until all such required
current payments into the Interest Account, the Principal Account, the Bond Redemption
Account, and the Debt Service Reserve AccouK including any deficiencies for prior
required payments, have been made in full, and the City shall have complied fully with
all the covenants and provisions of the Bond Resolution.
12
t
(f) If on any payment date the Pledged Revenues are insufficient to place the required
amount in any of the funds or accounts or for any of the purposes provided above, the
deficiency shall be made up on the subsequent payment dates.
(g) All moneys levied and collected by the City as Pledged Revenues shall be deposited into
the Revenue Account within twenty-four (24) hours after the receipt thereof to the extent
practicable.
HISTORICAL HALF -CENT SALES TAX REVENUES
Set forth below is a summary of Half -Cent Sales Tax revenues received by the City for Fiscal Years
ending September 30, 1988 through Fiscal Year 1998.
Year Ending femjZgr 30 HHalf Cent Sales „Tax Revenues PerceUtage
19880) 1,307,681
1989 1,410,566 7.87%
1990 1,553,474 10.13%
1991 1,624,751 4.59%
1992 1,730,227 6.49%0
1993 2,043,777 18.12%
1994 . 2,149,161 5.16%
1995 2,280,414 6.11 %
19901 2,392,542 k 4.92%
1997 2,493,915 4.24%
1998 2,636,045 5.70%
Source: State of Florida, Department of Revenue.
Between May 1, 1982 and December 31, 1988, the sales tax rate was 5%. Subsequent to February 1,
1988, the sales tax rate has been 6%.
cz� Due to a change in the method used.by the City to accrue sales tax revenues, the audited financial
statements of the City for fiscal year 1996 included 13 months of sales tax revenues. The
revenues set forth in this table for 1996 reflect only collections during the City's 12-month fiscal
year.
13
PROJECTED DEBT SERVICE COVERAGE
The following table shows the projected Half -Cent Sales Tax Revenues for the City based on several
revenue growth assumptions.
1929 2000 2001 2002 2003
Local Government $2,657,201 $2,776,775 $2,901,730 $3,032,308 $3,168,762
Half -cent Sales Tax
Distribution(')
Maximum Annual Debt 698,062 698,062 698,062 698,062 698,062
Service for Series 1999
Bonds
Debt Service 3.80 3.97 4.15 4.34 4.53
Coverage
(1) The projected amounts assume a 4.5% growth rate.
The achievement of any financial projection is based upon assumptions as to future events, which
will be affected by economic conditions and other factors. Inevitably, certain assumptions will not
materialize and unanticipated events and circumstances may occur; therefore, the actual results
achieved during the projected periods may vary from the projected results, and the variations may
be material.
BOND SERVICE SCHEDULE
The table below lists the Bond Service Schedule on the Series 1999 Bonds.
i
Period
Principal &
Ending
Amortization
Total
April 1
InstallMgnts
Interest
Debt Sgrvice
2000
$280,000
$293,893.33
$573,893.33
2001
290,000
403,347.50
693,347.50
2002
305,000
392,037.50
697,037.50
2003
315,000
379,837.50
694,837.50
2004
330,000
366,922.50
696,922.50
2005
345,000
353,062.50
698,062.50
2006
355,000
338,227.50
693,227.50
14
r ,
Period Principal &
Ending Amortization Total
April I Installments Intcrut Deft Service
2007 375,000 322,607.50 697,607.50
2008 390,000 305,732.50 695,732.50
2009 41.0,000 287,792.50 697,792.50
2010 425,000 268,522.50 693,522.50
2011 445,000 248,335.00 693,335.00
2012 470,000 226,752.50 696,752.50
2013 490,000 203,722.50 693,722.50
2014 515,000 179,222.50 694,222.50
2015 540,000 153,472.50 693,472.50
2016 570,000 125,932.50 695,932.50
2017 600,000 96,862.50 696,862.50
2018 630,000 66,112.50 696,112.50
2019 660,000 33,825.00 693,825.00
TOTALS $8,740,000 $5,046,220.83 $13,786,220.83
MUNICIPAL BOND INSURANCE
Concurrently with the issuance of the Series 1999 Bonds, Financial Guaranty Insurance Company
("Financial Guaranty") will issue its Municipal Bond New Issue Insurance Policy for the Series 1999
Bonds (the "Policy") in substantially the form attached as Appendix G hereto. The Policy
unconditionally guarantees the payment of that portion of the principal of and interest on the. Series
1999 Bonds which has become due for payment, but shall be unpaid by reason of nonpayment by
the issuer of the Series 1999 Bonds (the "Issuer"). Financial Guaranty will make such payments to
State Street Bank and Trust Company, N.A., or its successor as its agent (the "Fiscal Agent"), on the
later of the date on which such principal and interest is due or on the business day. next following
the day on which Financial Guaranty shall have received telephonic or telegraphic .notice,
subsequently confirmed in writing, or written notice by registered or certified mail, from an owner
of Series 1999 Bonds or the Paying Agent of the nonpayment of such amount by the Issuer. The
Fiscal Agent will disburse such amount due on any Bond to its owner upon receipt by the. Fiscal
Agent of evidence satisfactory to the Fiscal Agent of the owner's qhi to receive payment of the
principal and interest due for payment and evidence, including any appropriate instruments of
assignment, that all of such owner's rights to payment of such principal and interest shall be vested
in Financial Guaranty. The term "nonpayment" in respect of a Bond includes any payment of
15
principal or interest made to an owner of a Bond which has been recovered from such owner
Pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in accordance with a final,
nonappealable order of a court having competent jurisdiction.
The Policy is non -cancellable and the premium will be fully paid at the time of delivery of the Series
1999 Bonds. The Policy covers failure to pay principal of the Series 1999 Bonds on their respective
stated maturity dates or dates on which the same shall have been duly called for mandatory sinking
fund redemption, and not on any other date on which the Series 1999 Bonds may have been
otherwise called for redemption, accelerated or advanced in maturity, and covers the failure to pay
an installment of interest on the stated date for its payment.
Generally, in connection with its insurance of an issue of municipal securities, Financial Guaranty
requires, among other things, (i) that it be granted the power to exercise any rights granted to the
holders of such securities upon the occurrence of an event of default, without the consent of such
holders, and that such holders may not exercise such rights without Financial Guaranty's consent,
in each case so long as Financial Guaranty has not failed to comply with its payment obligations
under its insurance policy; and (ii) that any amendment or supplement to or other modification of
the principal legal documents be subject to Financial Guaranty's consent. The specific rights, if any,
granted to Financial Guaranty in connection with its insurance of the Series 1999 Bonds are set forth
in the description of the principal legal documents appearing elsewhere in this Official Statement.
Reference should be made as well to such description for a discussion of the circumstances, if any,
under which the Issuer is required to provide additional or substitute creditenhancement, and related
matters.
This Official Statement contains a section regarding the ratings assigned to" the Series 1999 Bonds
and reference should be made to such section for a discussion of such ratings and the basis for their
assignment to the Series 1999 Bonds. Reference should be made to the description of the Issuer for
a discussion of the ratings; if any, assigned to such entity's outstanding' parity'debt that is not secured
by credit enhancement.
The Policy is not covered by the Property/Casualty Insurance Security Fund specified in Article 76
of the New York Insurance Law or by the Florida Insurance Guaranty Association (Florida Insurance
Code, §§631.50 et seq.).
Financial Guaranty is a wholly -owned subsidiary of FGIC Corporation (the "Corporation"), a
Delaware holding company. The Corporation is a subsidiary of General Electric Capital Corporation
("GE Capital"). Neither the Corporation nor GE Capital is obligated to pay the debts of or the claims
against Financial Guaranty, Financial Guaranty is a monoline financial guaranty insurer domiciled
in the State of New York and subject to regulation by the State of New York Insurance Department.
As of March 31, 1999, the total capital and surplus of Fir40
cial Guaranty was $1,274,619;558.
Financial Guaranty prepares financial statements on the basis of both statutory accounting principles
and generally accepted accounting principles. Copies of such financial statements may be obtained
by writing to Financial Guaranty at 115 Broadway, New York, New York 10006, Attention:
Communications Department (telephone number: 212-312-3000) or to the New York State Insurance
Department at 25 Beaver Street, New York, New York 10004-2319, Attention: Financial Condition
Property/Casualty Bureau (telephone number: 212-480-5187).
Year 2000 Readiness Disclosure. Financial Guaranty is aware of the potential disruptive effect of
the Year 2000 problem and recognizes that it is possible that an issuer may be unable to make timely
payment of debt service due to Year 2000 problems. Financial Guaranty is surveying selected
issuers, trustees and paying agents to assess their Year 2000 readiness. Financial Guaranty believes
that it has adequate sources of liquidity to cover any payments occasioned by an issuer's inability
to make timely payment of debt service due to Year 2000 problems.
Commencing in early 1998, Financial Guaranty implemented an action plan to make its computer
systems and applications Year 2000 ready. The target date for Year 2000 system readiness varies
by system. Financial Guaranty's goal is to be Year 2000 ready for all systems and applications by
mid-1999.
DEBT SERVICE RESERVE FUND POLICY
Concurrently with the issuance of the Series 1999 Bonds, Financial Guaranty Insurance Company
("Financial Guaranty") will .issue its Municipal Bond Debt Service Reserve Fund Policy (the
"Reserve Policy") in substantially the form attached as Appendix F hereto. The Reserve Policy
unconditionally guarantees the payment of that portion of the principal of and interest on the
Series 1999 Bonds which has become due for payment, but shall be unpaid by reason of nonpayment
by the City, provided that the aggregate amount paid under the Reserve Policy may not exceed the
maximum amount set forth in the Reserve Policy. Financial Guaranty will make such payments to
the paying agent (the "Paying Agent") for the Series 1999 Bonds on the later of the date on which
such principal and interest is due or on the Business day next following the day on which Financial
Guaranty shall have received telephonic or telegraphic notice subsequently confirmed in writing or
written notice by registered or certified mail from the Paying Agent of the nonpayment of such
amount by the City. The term "nonpayment" in respect of a Bond includes any payment of principal
or interest made to an owner of a Bond which has been recovered from such owner pursuant to the
United States Bankruptcy Code by a trustee in bankruptcy in accordance with a final nonappealable
order of a court having competent jurisdiction.
The Reserve Policy is non -cancellable and the premium will be fully paid at the time of delivery of
the Series 1999 Bonds. The Reserve Policy covers failure to pay principal of the Series 1999 Bonds
on their respective stated maturity dates, or dates on which the same shall have been called for
mandatory sinking fund redemption, and not on any other date on which the Series 1999 Bonds may
have been accelerated, and covers the failure to pay an installment of interest on the stated date for
its payment. The Reserve Policy shall terminate on the earlier of the k i6duled final maturity date
of the Series 1999 Bonds or the date on which no Series 1999 Bonds are outstanding under the
authorizing document.
17
Generally, in connection with its issuance of a Reserve Policy, Financial Guaranty requires, among
other things, (i) that, so long as it has not failed to comply with its payment obligations under the
Reserve Policy, it be granted the power to exercise any remedies available at law or under the
authorizing document other than (A) acceleration of the Series 1999 Bonds or (B) remedies which
would adversely affect holders in the event that the City fails to reimburse Financial Guaranty for
any draws on the Reserve Policy; and (ii) that any amendment or supplement to or other
modification of the principal legal documents be subject to Financial Guaranty's consent. The
specific rights, if any, granted to Financial Guaranty in connection with its issuance of the Reserve
Policy are set forth in the description of the principal legal documents appearing elsewhere in this
Official Statement. Reference should be made as well to such description for a discussion of the
circumstances, if any, under which the issuer of the Series 1999 Bonds is required to provide
additional or substitute credit enhancement, and related matters.
This Official Statement contains a section regarding the ratings assigned to the Series 1999 Bonds
and reference should be made to such section for a discussion of such ratings and the basis for their
assignment to the Series 1999 Bonds. Reference should be made to the description of the City for
a discussion of the ratings, if any, assigned to such entity's outstanding parity debt that is not secured
by credit enhancement.
The Reserve Policy is not covered by the Property/Casualty Insurance Security Fund specified in
Article 76 of the New York Insurance Law or by the Florida Insurance Guaranty Association
(Florida Insurance Code, §§63 L50 et seq.).
Financial Guaranty is a wholly -owned subsidiary of FGIC Corporation (the "Corporation"), a
Delaware holding company. The Corporation is a subsidiary of General Electric Capital Corporation
("GE Capital"). Neither the Corporation nor GE Capital is obligated to paythe debts of or the claims
against Financial Guaranty. Financial Guaranty is a monoline financial'guaranty insurer domiciled
in the State of New York and subject to regulation by the State of New York Insurance Department.
As of March 31, 1999, the total capital and surplus of Financial Guaranty was $1,274,619,558.
Financial Guaranty prepares financial statements on the basis of both statutory accounting principles
and generally accepted accounting principles. Copies of such financial statements may be obtained
by writing to Financial Guaranty at 115 Broadway, New York, New York 10006, Attention:
Communications Department (telephone number: 212-312-3000) or to the New York State Insurance
Department at 25 Beaver Street, New York, New York 10004-2319, Attention: Financial Condition
Property/Casualty Bureau (telephone number: 212-480-5187).
18
SOURCES AND USES OF FUNDS
The following table sets forth the sources and uses of funds, including accrued interest.
Sources of Funds:
Par Amount of Bonds $8,740,000.00
Accrued Interest 22,960.42
Less: Original Issue Discount (66,956.60)
Total Sources $8,696,003.82
Uses of Funds:
Deposit to Project Fund $8,504,586.01
Deposit to Interest Account 22,960.42
Underwriter's Discount 40,151.56
Costs of Issuance 128,305.83
Total Uses $8,696.003,82
THE CAPITAL PROJECTS
Approximately $8,504,586.01 of the proceeds of the Series 1999 Bonds shall be deposited into a
Construction Fund created by the Bond Resolution and applied by the City to finance or refinance
a portion of the costs associated with a City-wide road improvement project which will include the
repair and resurfacing of existing public roadways, median beautification and other improvements
to roadways within the City.
LEGAL MATTERS
Certain legal matters incident to the issuance of the Series 1999 Bonds are subject to the legal
opinion of Akerman, Senterfitt & Eidson. P.A., Orlando, Florida, Bond Counsel, whose legal
services as Bond Counsel and Disclosure Counsel have been retained by the City. The text of the
proposed legal opinion is set forth as Appendix D. The actual legal opinion to be delivered may vary
from the form attached as Appendix D hereto if necessary to reflect facts and law on the date of
delivery. The opinion will speak only as of its date, all subsequent distribution of it by recirculation
of the Official Statement or otherwise shall create no implication that Bond Counsel has reviewed
or expresses any opinions concerning any of the matters referred to in the opinions subsequent to its
date. Certain legal matters will be passed on for the Underwriter by its Counsel, Atlas, Pearlman,
Trop & Borkson, and for the City by Mitchell S. Kraft, Esquire, City Attorney.
f[7
LITIGATION
Concurrently with the delivery of the Series 1999 Bonds, the City will deliver a certificate v
states that there is no litigation pending that seeks to restrain or enjoin the issuance or delivery (
Series 1999 Bonds or proceedings or authority under which they are to be issued and neith(
creation, organization nor existence of the City is contested.
The City experiences routine litigation and claims incidental to the conduct of municipal affair
the opinion of the City, there are no lawsuits presently pending or, to the best of the (
knowledge, threatened, the adverse outcome of which would impair the City's ability to perfor
obligations to the Bondholders.
ENFORCEABILITY OF REMEDIES
The remedies available to the owners of the Series 1999 Bonds upon an event of default und(
Bond Resolution are in many respects dependent upon judicial actions which are often subj(
discretion and delay. Under existing constitutional and statutory law and judicial decis
including specifically Title 11 of the United States Bankruptcy Code, the remedies specified b
Bond Resolution and the Series 1999 Bonds may not be readily available or may be limited_
various legal opinions to be delivered concurrently with the delivery of the Series 1999 B
(including Bond Counsel's approving opinion) will be qualified, as to the enforceability e
various legal instruments, by limitations imposed by bankruptcy, reorganization, insolvency or
similar laws affecting the rights of creditors enacted before or after such delivery.
TAX EXEMPTION
The Internal Revenue Code of 1986, as amended (the "Code"), includes requirements which the
must continue to meet after the issuance of the Series 1999 Bonds in order that interest on the c
1999 Bonds not be included in gross income for federal income tax purposes. The City's failr
meet these requirements may cause interest on the Series 1999 Bonds to be included in gross in(
for federal income tax purposes retroactive to their date of issuance. The City has covenanted i
Bond Resolution to take all actions required by the Code in order to maintain the exclusion
gross income for federal income tax purposes of interest on the Series 1999 Bonds. The opini(
Bond Counsel will be based upon and assume the accuracy of certain representations
certifications and compliance with certain covenants of the City to be contained in the transcri
proceedings which are intended to evidence and assure that interest on the Series 1999 Bonds is
will continue to be excluded from gross income for federal income tax purposes.
In the opinion of Bond Counsel, assuming continuing compliance by the City with the tax coves
referred to above, under existing statutes, regulations, rulings and judicial decisions, interest o
Series 1999 Bonds is excluded from gross income for federal income tax.purposes and is not an
of tax preference for purposes of the federal alternative minimum tax imposed on individual.,
corporations; however, such interest is taken into account in determining adjusted current earnings
for purposes of computing the alterative minimum tax imposed on certain corporations under the
Code. Bond Counsel is further of the opinion that the Series 1999 Bonds and the interest thereon
are exempt from taxation under the laws of the State of Florida, except as to estate taxes and taxes
imposed by Chapter 220, Florida Statutes, on interest, income and profits on debt obligations owned
by corporations as defined therein.
In the Bond Resolution, the City has designated the Series 1999 Bonds as a "qualified tax-exempt
obligation" within the meaning of Section 265(b)(3) of the Code. The City has represented in the
Bond Resolution that it does not reasonably expect that the City, or any subordinate entities of the
City, and issuers of debt that issue "on behalf' of the City, will during calendar year 1999 issue more
than $10,000,000 of "tax-exempt" obligations, exclusive of those obligations described in
Section 265(b)(3)(C)(ii) of the Code. Based upon such designation and representations, Bond
Counsel is of the opinion that the Series 1999 Bonds are "qualified tax-exempt obligations" within
the meaning of Section 265(b)(3) of the Code.
Except as described above, Bond Counsel will express no opinion regarding the federal income tax
consequences resulting from the ownership of, receipt or accrual of interest on, or disposition of the
Series 1999 Bonds. Prospective purchasers of Series 1999 Bonds should be aware that the
ownership of Series 1999 Bonds may result in other collateral federal tax consequences, including
(i) the denial of a deduction for interest on indebtedness incurred or continued to purchase or carry
Series 1999 Bonds or, in the case of a financial institution, that portion of the owner's interest
expenses allocable to interest on Series 1999 Bonds, (ii) the reduction of the loss reserve deduction
for property and casualty insurance companies by 15 percent of certain items, including interest on
the Series 1999 Bonds, (iii) the inclusion of interest on Series 1999 Bonds in "modified alternative
minimum taxable income" for purposes of the environmental tax imposed on corporations, (iv) the
inclusion of interest on Series 1999 Bonds in the earnings of certain foreign corporations doing
business in the United States for purposes of a branch profits tax, (v) the inclusion of interest on
Series 1999 Bonds in the passive income subject to federal income taxation of certain Subchapter S
corporations with Subchapter C earnings and profits at the close of the taxable year, and (vi) interest
on the Series 1999 Bonds is taken into account in determining whether recipients of Social Security
and Railroad Retirement benefits must include a portion of those benefits in gross income.
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 1999 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 1999 Bonds. From time to
time, legislative proposals are pending which could have an effect on both the Federal tax
consequences resulting from ownership of Series 1999 Bonds and their market value. No assurance
can be given that legislative proposals will not be introduced or enacted that would or might apply
to, or have an adverse effect upon, the Series 1999 Bonds.
21
TTreatmg& L)LOriginal-Issue Discoullt
Under the Code, the difference between the principal amount of the Series 1999 Bonds maturing in
the years 2001 through 2019, 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 Series 1999 Bonds of the same maturity was sold is "original
issue discount". Original issue discount will accrue over the term of such Series 1999 Bonds at a
constant interest rate compounded periodically. A purchaser who acquires such Series 1999 Bonds
in the initial offering at a price equal to the initial offering price thereof to the public will be treated
as receiving an amount of interest excludable from gross income for federal income tax purposes
equal to the original issue discount accruing during the period he holds such Series 1999 Bonds, and
will increase his adjusted basis in such Series 1999 Bonds by the amount of such accruing discount
for purposes of determining taxable gain or loss on the sale or other disposition of such Series 1999
Bonds. The federal income tax consequences of the purchase, ownership and redemption, sale or
other disposition of the Series 1999 Bonds which are not purchased in the initial offering at the
initial offering price may be determined according to rules which differ from those above. Owners
of such Series 1999 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 of Series 1999 Bonds and with respect to the state and local tax consequences of owning
and disposing of such Series 1999 Bonds.
RATINGS
Standard & Poor's Corporation (S&P) and Moody's Investors Service, Inc. ("Moody's") have
assigned their municipal bond ratings of AAA and Aaa, respectively, to the Series 1999 Bonds, with
the understanding that upon delivery of the Series 1999 Bonds, a policy insuring the payment when
due of the principal of and interest on the Series 1999 Bonds will be issued by Financial Guaranty
Insurance Company. S&P and Moody's have also initially assigned an underlying rating to the
Bonds of A- and A2, respectively. The ratings reflect only the views of S&P and Moody's, and an
explanation of the significance of the ratings may be obtained only from S&P and Moody's. The
ratings are not a recommendation to buy, sell or hold the Series 1999 Bonds and there is no
assurance that such ratings will remain in effect for any given period of time or that they will not be
revised downward or withdrawn entirely if, in the judgment of S&P or Moody's, circumstances so
warrant. Any downward revision or withdrawal of such ratings may have an adverse effect on the
market price of the Series 1999 Bonds. Neither the Underwriters nor the City have undertaken
responsibility to bring to the attention of the holders of the Series 1999 Bonds any proposed revision
or withdrawal of the ratings of the Series 1999 Bonds, or to oppose any proposed revision or
withdrawal.
22
UNDERWRITING
The Series 1999 Bonds wil: be being purchased by First Union Capital Markets Corp. (the
Underwriter"), at an aggregate purchase price of $8,632,891.84 (which takes into account an
original issue discount of $66,956.60 and an underwriter's discount of $40,151.56) plus accrued
interest from the date of delivery of the Series 1999 Bonds. The offer of the Underwriter to purchase
the Series 1999 Bonds provides for the purchase of all but not less than all of the Series 1999 Bonds.
The Underwriter may offer to sell Series 1999 Bonds to certain dealers (including the Underwriter
and other dealers depositing the Series 1999 Bonds into investment trusts) and others at prices lower
than the public offering prices stated on the cover page hereof, and such public offering prices may
be changed, from time to time, by the Underwriter.
In accordance with Rule G-38 of the Municipal Securities Rulemaking Board ("MSRB"), a bank
consultant, an employee of First Union National Bank, has been engaged by First Union Capital
Markets Corp. to provide referrals regarding Public Finance projects.
In accordance with MSRB Rule G-38, the law firm of Colodny, Fass & Talenfeld, P.A. has been
hired by First Union Capital Markets Corp. to provide advice on civic and community issues in
Florida and to seek opportunities for Government Banking business including underwriting and
placement of municipal securities. For this advice, Colodny, Fass & Talenfeld, P.A. receives
compensation of $2,000 monthly from First Union Capital Markets Corp. and is reimbursed for any
out-of-pocket expenses in the course of providing this advice.
VALIDATION
The validation of the issuance of not exceeding $15,000,000 of City of Tamarac, Florida Revenue
Bonds, of which the Series 1999 Bonds are a part, has been determined by Final Judgement of the
Seventeenth Judicial Circuit of Florida, in and for Broward County, Florida, on October 27, 1998;
the time for filing an appeal has expired with no appeal having been riled.
FINANCIAL STATEMENTS
Excerpts of the audited financial statements of the City for the year ended September 30, 1998 and
the report of Madsen, Sapp, Mena, Rodriquez and Company, P.A., independent certified public
accountants, in connection therewith, dated January 22, 1999, are included in Appendix B.
FINANCIAL ADVISOR
Public Financial Management, Inc., Fort Myers, Florida is serving as Financial Advisor to the City
with respect to the sale of the Series 1999 Bonds. The Financial Advisor assisted in the preparation
of this Official Statement and in other matters relating to the planning, structuring and issuance of
23
the Series 1999 Bonds and provided other adv�.ce. Public Financial Management, Inc. is a financial
advisory and consulting organization and is not engaged in the business of underwriting, marketing
or trading of municipal securities or any other negotiable instruments.
CONTINUING DISCLOSURE
In the Bond Resolution, the City has covenanted and agreed that it will comply with and carry out
all of. the provisions of the Continuing Disclosure Certificate. In the Continuing Disclosure
Certificate, the City has covenanted to provide certain financial information and operating date
relating to the City not later than April 30 of each year commencing April 30, 2000 (the "Annual
Report") and to provide notices of the occurrence of certain enumerated events, if material. The
Annual Report will be filed with each Nationally Recognized Municipal Securities Information
Repository. The notices of certain material events will be riled with the Municipal Securities
Rulemaking Board. The Continuing Disclosure Certificate is attached hereto as Appendix G. These
covenants have been made in order to assist the Underwriter in complying with S.E.C. Rule 15c2-
12(b)(5).
Failure of the City to comply with the Continuing Disclosure Certificate will not be considered an
event of default; however, any Holder of Series 1999 Bonds may take such actions as may be
necessary and appropriate, including seeking mandate or specific performance by court order, to
cause the City to comply with such Certificate. Holders of Series 1999 Bonds shall not be entitled
to any damages for failure of the City to comply with the terms of the Continuing Disclosure
Certificate.
The City has not failed to comply with the continuing disclosure requirements in any prior
undertaking.
Except as aforesaid, the City has undertaken no responsibilities for continuing disclosure with
respect to the Series 1999 Bonds. However, the City intends to comply with all applicable legal
requirements concerning continuing disclosure as may relate to the Series 1999 Bonds from time to
time.
YEAR 2000 ISSUES
The City of Tamarac
- The Year 2000 issue is the result of shortcomings in many electronic data processing systems and
other equipment that may adversely affect operations in the year 1999 and beyond. The problem
originated when programmers used two digit codes to designate years. Many programs, if not
corrected, will not be able to distinguish between the year 2000 and the year 1900. This may cause
the equipment to process data inaccurately or to stop processing altogether.
24
To address this problem, the City produced a Year 2000 report in 1997. This report addresses the
City's approach to solving the Year 2000 problem. There are five phases to tie Year 2000 project:
1. Awareness. Disburse information to ensure that all concerned are informed about the issues.
2. Assessment. Identify all systems having a potential to be affected by the year 2000, and
assess the actual status of each of these systems.
Remediation. Establish standards and begin the process of conversion or replacement of
Year 2000 impaired systems.
4. Validation/Implementation. Validating and testing the changes made during the conversion
process.
The City has completed an inventory of computer systems and other electronic equipment that may
be affected by the Year 2000 issue and that are necessary to conduct City operations. The
validation/testing phase was completed for the financial reporting, payroll and employee benefit
systems. The program of replacing outdated personal computers is under way and is expected to be
completed by May 1999. During the fiscal year 1999, $230,000 was budgeted for the Year 2000
related hardware and software initiatives. The City telemetry systems improvement project is due
to be completed by May 2000 and $1.2 million has been budgeted for this capital project.
Because of the unprecedented nature of the Year 2000 issue, its effects and the success of related
remediation efforts will not be fully determinable until the year 2000 and thereafter. The City cannot
give assurances that it is or will be Year 2000 ready, that the City's remediation efforts will be
successful in whole or in part, or that parties with whom the City does business will be Year 2000
ready.
The Half -Cent Sales tax is collected by many vendors, transmitted to the State of Florida and then
remitted to local governments such as the City. The City is unable to accurately assess the effects
of the Year 2000 problem on such vendors or the State of Florida. Failure of such entities to address
the Year 2000 problem may result in an interruption or errors in the amount of sales taxes
transmitted to the State of Florida and remitted to the City.
The Paying Agent and Registrar is responsible for maintaining a record of the holders of the
Series 1999 Bonds and remitting payment received from the City to such holders. The Bank of New
York has established a Year 2000 compliance program consisting of, among other things, updating
major proprietary application systems and evaluating the Year 2000 compliance efforts of vendors
of major vendor -supplied systems and certain other business partners. The Bank of New York
believes that its Year 2000 compliance program is currently on schedule to meet the needs of its
customers and the compliance deadlines defined by its regulators. As of December 31, 1998., testing
and renovation of the proprietary application systems that The Bank of New York deems "mission
critical" were substantially completed and these systems are currently being used by The Bank of
25
New York. In addition, all vendor supplied software systems that The Bank of New York deems
mission critical have been tested and, based upon such testing, The Bank of New York believes that
such systems will not be adversely affected in a material way by the date change to the Year 2000.
Due to the general uncertainty inherent in the Year 2000 problem, resulting in part from the
uncertainty of the Year 2000 readiness of suppliers, customers and other business partners, The Bank
of New York is unable to determine at this time whether the consequences of Year 2000 failures will
have a material impact on The Bank of New York and its ability to perform its obligations under the
Resolution. The Year 2000 compliance program is intended to reduce significantly The Bank of
New York's level of uncertainty about the Year 2000 problem and, in particular, the Year 2000
compliance and readiness of The Bank of New York and its material business partners. The Bank
of New York believes that, upon completion of its Year 2000 compliance program as scheduled, the
possibility of significant interruptions of normal operations should be reduced. However, because
of the unprecedented nature of the Year 2000 problem, there can be no uncertainty as to its impact.
The Degository Trust Comi2any
As described under the heading "DESCRIPTION OF THE SERIES 1999 BONDS--Book-Entry-Only
System," DTC will act as securities depository for the Series 1999 Bonds. DTC management is
aware that some computer applications, systems, and the like for processing data ("Computer
Systems") that are dependent upon calendar dates, including dates before, on, and after January 1,
2000, may encounter Year 2000 problems. DTC has informed its Participants and other members
of the financial community (the "Industry") that it believes that it has developed and is implementing
a program so that its Computer Systems, as the same relate to the timely payment of distributions
(including principal and income payments) to security holders, book -entry deliveries, and settlement
of trades within DTC, will continue to function appropriately. This program includes a technical
assessment, a remediation plan, and a testing phase, all of which, DTC believes, are expected to be
completed within appropriate time frames.
However, DTC believes that its ability to perform properly its services is also dependent upon other
parties, including, but not limited to, issuers and their agents, as well as third party vendors from
whom DTC licenses software and hardware and third party vendors on whom DTC relies for
information or the provisions of services, including telecommunication and electrical utility service
providers, among others. DTC is in the process of contacting third vendors from whom DTC
acquires services to determine the extent of their efforts for Year 2000 remediation and testing of
their services. In addition, DTC believes that it will engage in such contingency planning as it may
deem appropriate.
DTC has informed the Industry that the foregoing information has been provided by DTC to the
Industry for informational purposes only and is not intended to serve as a representation, warranty,
or contract modification of any kind.
DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS
Rule 3E-400.003, Rules of Government Securities, promulgated by the Florida Department of
Banking and Finance, Division of Securities, under Secticn 517.051(1), Florida Statutes ("Rule 3E-
400.003 "), requires the City to disclose each and every default as to payment of principal and interest
with respect to obligations issued or guaranteed by the City after December, 1975. Rule 3E-400.003
further provides, however, that if the City in good faith believes that such disclosure would not be
considered material by reasonable investors, such disclosure maybe omitted. Certain obligations
issued by the City in which the City has acted merely as a conduit for payment do not constitute an
actual debt, liability or obligation of the City, but are instead secured by payments to be made from
certain users of bond -financed property. Because such obligations are not dependent upon the City
for repayment, they do not affect or reflect the financial strength of the City. Accordingly, any prior
default with respect to such obligations issued by the City would not in the City's judgment be
considered material by reasonable investors in the Series 1999 Bonds. Accordingly, the City has not
taken affirmative steps to contact the various trustees of conduit bond issues of the City to determine
the existence of prior defaults.
To the best knowledge of the Director of Finance of the City, the City has not received actual notice
of a default in the payment of principal or interest after December 31, 1975 with respect to any
conduit obligations issued or guaranteed by the City. Furthermore, the City has not defaulted in the
payment of principal on interest or any bonds issued by the City which constitute direct obligations
of the City or obligations which are guaranteed by the City.
AUTHORIZATION CONCERNING OFFICIAL STATEMENT
The delivery of this Official Statement has been duly authorized by the Commission of the City. At
the time of the delivery of the Series 1999 Bonds, the Mayor and the Director of Finance will furnish
a certificate to the effect that neither the Mayor nor said Director of Finance has any knowledge or
reason to believe that this Official Statement, as of its date and as of the date of delivery of the Series
1999 Bonds, makes any untrue statement of a material fact or omits to state a material fact which
should be included therein for the purpose for which the Official Statement is intended to be used,
or which is necessary to make the statements contained herein, in the light of the circumstances
under which they were made, not misleading.
A limited number of copies of the final Official Statement will be provided, at the City's expense,
on a timely basis.
MISCELLANEOUS
All information included herein has been provided by the City, except where attributed to other
sources. 'The summaries of and references to all documents, statutes, reports and other instruments
referred to herein do not purport to be complete, comprehensive or definitive, and each such
reference or summary is qualified in its entirety by reference to each such document, statute, report
or other instrument.
27
CONCLUDING STATEMENT
The information in the foregoing pages is presented for the guidance of prospective purchasers of
the Series 1999 Bonds described herein. The information has been compiled from official records
of the City and other sources and, while not guaranteed by the City, is believed to be correct. Insofar
as any statements made in this Official Statement and the appendices attached herein involve matters
of opinion or of estimates, whether or not so expressly stated, they are set forth as such and not as
representations of fact, and no representation is made that any of the estimates will be realized.
28
This Official Statement has been duly executed and delivered by the Mayor and the Director of
Finance of the City of Tamarac, Florida.
CITY OF TAMARAC, FLORIDA
Joe Schreiber, Mayor
Margaret A. McGarrity, CPA
Director of Finance
29
Appendix A
Information Regarding the City of Tamarac, Florida
and Broward County, Florida
Appendix A
Information Regarding the!Cily o Tamarac. Florida and Broward Cou ty, Florida
Background
The City of Tamarac, Florida (the "City") was established in 1963 and is located in Broward County,
Florida. The City provides the following services to its residents: public safety, planning and zoning,
sanitation, streets and roads, parks and recreation facilities.
The City is located in the southern part of Florida, approximately 33 miles north of Miami. The City
currently has a land area of 12.1 square miles with an approximate population of 51,488. The City
also has the power by state statute to extend its corporate limits by annexation.
Government and Organization
The City operates under the commission -manager form of government. Policy making and
legislative authority are vested in the City Commission. The City Commission consists of five
members, one of whom is the Mayor. The City Commission is responsible, among other things, for
passing ordinances, adopting the budget, appointing committees and hiring the City Manager and
City Attorney. The City Manager is the chief administrative officer of the City responsible for the
administration of all City day-to-day affairs. City Commissioners are elected by district for three-
year terms and cannot succeed themselves for more than two terms. The Mayor is elected at large
for a three-year term, and cannot succeed himself/herself for more than two terms.
CITY OF TAMARAC
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
(Last Ten Fiscal Years)
S. Florida
North
Florida
Broward
Water
Broward
Inland
Fiscal
City of
Broward
District
Management
Hospital
Navigation
Year
Tamarac
County
Schools
District
District
District Everglades
Total
1989
4.1734
6.0777
8.2500
0.5470
2.1034
0.0395 --
21.1910
1990
4.7898
6.6058
9.1218
0.5470
2.5000
0.0370 0.5700
24.1714
1991
5.2033
6.8329
9.6086
0.5470
2.5000
0.0550 0.6179
25.3647
1992
5.0594
7.2275
9.9258
0.5470
2.5000
0.0530 --
25.3127
1993
5.3943
7.9618
9.8310
0.5470
2.4890
0.0520 --
26.2751
1994
5.5050
8.1327
9.8197
0.5970
2.4753
0.0510 --
26.5807
1995
5.8366
8.0343
10,0259
0.5970
2.4618
0.0490 --
27.0046
1996
5.8028
8.1165
10.0366
0.6470
2.4327
0.0400 --
27.0756
Y 1997
5.5222
7.7524
9.4000
0.6720
2.4200
0.0380 -
25.8046
1998
5.5099
7.8380
9.9745
0.6970
2.4087
0.0500 --
26.4781
Source: Broward County Property Appraiser
A-1
CITY OF TAMARAC
PRINCIPAL TAXPAYERS
(as of September 30, 1998)
Percent
of Total
Taxable
Taxable
Taxpayer
Type of Business
Valuation
Valuation
University Hospital, Ltd.
Hospital, Health Care
$ 33,823,902
2.09%
Florida Power & Light Co.
Electric Utility
33,735,557
2.08
Southern BellBell South Telephone Co.
Communications Utility
17,320,514
1,07
J.S.E. Associates (Hidden Harbour)
Rental Apartments
17,040,976
1.05
Lennar Land Partners
Land Development
14,852,290
0.92
Midway Plaza Associates LP
Shopping Center
14,355,000
0.89
Capreit Westwood Pines
Rental Apartments
11,779,330
0.73
OTC Apartments LTD Partners
Rental Apartments
10,744,300
0.66
Spring House Apartments, Ltd.
Rental Apartments
10,252,823
0.63
BRI Woodland Meadows Inc.
Rental Apartments
9.692.034
16-0
Total
$ 173,596,726
10.72%
Source: Broward County Property Appraiser
CITY OF TAMARAC, FLORIDA
ASSESSED VALUE OF TAXABLE PROPERTY
(Last ten fiscal years)
Total Assessed
Assessed Values Value of
Fiscal Year Real Property Personal Property Property
1989
$1,034,856,032
$85,058,433
$1,119,914,465
1990
1,174,035,605
90,641,379
1,264,676,984
1991
1,251,943,876
101,601,653
1,353,545,529
1992
1,310,527,109
102,551,963
1,413,079,072
1993
1,262,542,794
99,816,243
1,362,359,037
1994
1,259,175,200
99,978,214
1,359,153,414
1995
1,388,679,626
106,856,285
1,495,535,911
1996
1,374,560,080
121,626,740
1,496,186,820
1997
1,444,989,880
115,059,146
1,560,049,026
1998
1,502,455,190
116,188,330
1,618,643,520
Note: The basis of assessed value of approximately one hundred percent (100%) of actual value. For each fiscal year ending
September 30, property is valued as of January I" of the preceding calendar year.
Source: Broward County Property Appraiser
A-2
CITY OF TAMARAC, FLORIDA
GENERAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(in Thousands)
Licenses
Inter-
Charges
Miscel-
Unrealized
Fiscal
and
Govern-
for
Fines and
laneous
Interest
Gain/(Lass)
Year
Taxes_)
Permits
mental
Services
Forfeitures
e e
Income
on Investments Tot
1989
$6,861,551
$1,143,161
S2,864,780
$2,275,512
$429,889
$1,230,530
$754,483
$ --
$15,559,906
1990
8,341,438
1,210,908
3,129,519
2,451,941
523,610
1,363,361
798,536
--
17,819,313
1991
9,442,292
793,800
3,273,481
326,173
406,387
2,141,167
538,202
--
16,921,502
1992
9,442,729
955,456
2,992,553
373,532
432,538
1,576,193
432,099
--
16,205,100
1993
9,926,016
1,157,387
3,515,990
534,742
385,646
1,592,112
339,334
--
17,451,227
1994
10,577,984
1,457,687
3,426,381
597,676
316,358
2,178,279
312,657
--
18,867,022
1995
11,527,283
1,612,630
3,725,375
386,086
301,714
2,095,650
421,000
--
20,069,738
1996
12,201,749
1,287,486
4,295,036
1,043,827
366,847
2,017,035
447,783
--
21,659,763
1997
13,951,304
1,370,496
3,800,949
3,705,309
403,207
3,018,438
624,509
(52,421)
26,821,791
1998
15,192,327
1,770,970
4,769,933
4,141,624
429,065
3,350,775
632,551
265,816
30,553,061
Source: City of Tamarac, Florida Comprehensive Annual Financial Report, September 30, 1998.
") Includes ad valorem taxes, franchise fees, and public service fees. Includes all Governmental Fund Types.
POPULATION
From its origination in 1963 with an approximate population of 2,600 people, Tamarac has grown to an
estimated 51,488 people in 1998.
Broward
State of
Year
Tamarac
County
Florida
United States
1988
39,636
1,206,700
12,327,600
244,499,000
1989
43,001
1,232,500
12,650,900
246,819,000
199011)
44,822
1,255,500
12,938,100
248,765,000
1991
46,140
1,278,400
13,196,000
252,124,000
1992
46,375
1,294,100
13,424,400
255,002,000
1993
46,711
1,317,500
13,608,600
257,753,000
1994
47,646
1,340,200
13,878,900
260,292,000
1995
48,758
1,364,200
14,149,300
262,761,000
1996
50,051
1,392,300
14,411,600
265,179,000
1997
50,792
1,423,700
14,712,900
267,636,000
Sources: Bureau of Economic and Business Research, University of Florida, 1998 Florida Statistical Abstract.
U.S. Department of Commerce, Bureau of the Census. City of Tamarac, Florida (as to City populations).
U.S. Census
M1
RETAIL SALES FOR BROWARD COUNTY
(in Thousands)
The following table shows the gross retail sales within Broward County for the years ended December 31,
1988 - 1998 and the percentage increase in such sales for each year.
Year
Gross Retail _Sales
Percentage Incre
1988
$28,044,337
8.99%
1989
28,050,633
0.02
1990
29,476,005
5.08
1991
31,833,902
8.00
1992
35,001,530
9.95
1993
36,945,870
5.56
1994
39,523,614
6.98
1995
41,569,204
5.18
1996
45,105,249
8.50
1997
47,790,574
5.95
1998
50,515,796
5.70
Source: State of Florida, Department of Revenue
PER CAPITA INCOME
Per capita personal income in Broward County for 1996 was $27,129 - the ninth highest among the 67 counties
in Florida. The table shows the per capita income for the top twelve counties in Florida.
Per Capita Personal Income
Top Twelve Counties in Florida
1996
County
Personal Incgle
of State
Palm County
$38,081
1.57%
Martin
35,503
1.47
Sarasota
35,062
1.45
Collier
34,830
1.44
Indian River
34,374
1.42
St. Johns
29,345
1.21
Monroe
28,959
1.20
Pinellas
27,311
1.13
Broward
27,129
1.12
Manatee
25,669
1.06
Lee
25,144
1.04
Seminole
24,852
1.03
State of Florida
24,198
100
United States
24,436
Source: Bureau of Economic and Business Research, University of Florida, 1998 Florida Statistical Abstract
A-4
Appendix
Audited Financial Statements
COMPREHENSIVE
ANNUAL FINANCIAL
REPORT
OF THE
CITY OF TAMARAC,
FLORIDA
FISCAL YEAR ENDED
SEPTEMBER 307 1998
Prepared by the
FINANCE DEPARTMENT
Margaret A. McGarrity, CPA, Director of Finance
William L. Nealon, Jr., CPA, CGFO, CIA, Controller
MADSEN, SAPP, MENA, RODRIGUEZ & CO., P.A.
Certified Public Accountants &: Ad kors
Independent Auditors' Report
January 22, 1999
The Honorable Mayor
and Members of the City Commission
City of Tamarac, Florida
We have audited the accompanying general-purpose financial statements of the City of Tamarac,
Florida as of and for the year ended September 30. 1998, listed in the financial section of the
foregoing table of contents, These general-purpose financial statements are the responsibility of
the management of the City of Tamarac. Florida. Our responsibility is to express an opinion on
these general-purpose financial statements based on our audit. We did not audit the financial
statements of the Employee Pension System Trust Fund, which reflects 100 percent of the assets
and revenues of the fiduciary fund type. Those financial statements were audited by other
auditors, whose report has been furnished to us, and our opinion on the general-purpose financial
statements, insofar as it relates to the amounts included for the Employee Pension System Trust
Fund, is based solely on the report of the other auditors.
We conducted our audit in accordance with generally accepted auditing standards and
Govemment Auditing Standards, issued by the Comptroller General of the United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the general-purpose financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
general-purpose financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall general-
purpose financial statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, based on our audit and the report of other auditors, the general-purpose financial
statements referred to above present fairly, in all material respects, the financial position of City of
Tamarac, Florida as of September 30, 1998, and the results of its operations and the cash flows
of its proprietary fund types for the year then ended in conformity with generally accepted
accounting principles.
In accordance with Government Auditing Standards. we have also issued a report dated January
22, 1999 on our consideration of the City of Tamarac, Florida's internal control structure and on its
compliance with laws and regulations.
7090 Northwest Fourth Street, Plantation. Florida 33317-2200
Telephone: (954) 583-7711 - Facsimile: (954) 581-1788
?t Y.\1Hr.k I'OLAklti WTI k\>r()\AI.
MADSEN. SAPP, MENA, RODRIGUEZ & CO.. P.A.
Certified Puhltc Accountants & Ad%kior�,
The Honorable Mayor
and Members of the City Commission
City of Tamarac, Florida
January 22, 1999
The schedule of funding progress on Page 38 and the year 2000 supplementary information on
Page 39 are not a required part of the basic financial statements, but is supplementary information
required by the Governmental Accounting Standards Board. We have applied certain limited
procedures, which consisted principally of inquiries of management regarding the methods of
measurement and representation of the supplementary information. However, we did not audit
the information and do not express an opinion on it. In addition, we do not provide assurance that
the City of Tamarac, Florida is or will become year 2000 compliant, that the City of Tamarac,
Florida's year 2000 remediation efforts will be successful in whole or in part, or that parties with
which the City of Tamarac, Florida does business are or will become year 2000 compliant.
Our audit was made for the purpose of forming an opinion on the general-purpose financial
statements taken as a whole. The combining and individual fund and account group financial
statements, and schedules, as listed in the financial section of the foregoing table of contents, are
presented for purposes of additional analysis and are not a required part of the general-purpose
financial statements of the City of Tamarac. Florida. Such information, except for that portion
marked "unaudited," on which we express no opinion, has been subjected to the auditing
procedures applied in the audit of the general-purpose financial statements and, in our opinion, is
fairly presented in all material respects in relation to the general-purpose financial statements
taken as a whole.
i' i
M MA r: 4� -• •
GENERAL-PURPOSE
FINANCIAL STATEMENTS
(Combined Statements - Overview)
These basic financial statements provide a summary overview of
the financial position of all funds and account groups as well as
the operating results of all funds. They also serve as an
introduction to the more detailed statements that follow in the next
subsection.
3
City of Tamarac, Florida
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS
Year Ended September 30, 1998
REVENUES
Taxes
Charges for services
Intergovernmental
Licenses and permits
Fines and forfeitures
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Transportation
Culture / recreation
Physical environment
Economic environment
Human services
Debt service -
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess of Revenues Over
(Under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
Capital leases
Total Other Financing Sources (Uses)
Excess of Revenues and Other
Financing Sources (Uses) Over
(Under) Expenditures
Fund Balances at Beginning of Year
Fund Balances at End of Year
r
Governmental Fund Tyees
Special Debt
General Revenue Service
$ 11,810,429
$ 2,598,735 $ 783,163
1,155,388
2,986,236 -
4,072,146
697,787
1,770,970
- _
429,065
- -
3,698,134
506,557 39,283
22,936,132
6,789,315 822,446
6,626,483
7,871,243
6,001,553
1,271,200
1,026,841 -
1,754,354
13,592
1,435,007
1,250,063
48,622
_
222,323
_
22,214 - 485,000
- 309.560
19,251,446 8,292,049 794,560
3,684,686 (1,502,734) 27,886
2,218,092
(2,218.092) -
101,457 540,518
(2,116,635) 2,758,610
1,568,051 1,255,876 27,886
5,314,949 3,385,358 (470,614)
$ 6,883,000 $ 4,641,234 $ 4�( 42,728)
The accompanying notes are an integral part of the financial statements.
6
Fiduciary
Fund
T�
Totals
Capital
Expendable
(Memorandum
Projects
Trusts
Only)
$
$
$ 15,192, 327
-
4,141,624
-
4,769,933
-
1,770, 970
429,065
5,168
110,114
4,359,256
5,168
110,114
30,663,175
6,626,483
13,872,796
2,298,041
1,767,946
- 2,685,070
48,622
222,323
507,214
309,560
- 28,338,055
5,168 110,114 2,325,120
2,218,092
(2,218,092)
641.975
641.975
5,168 110,114 2,967,095
78,360 4,839 8,312,892
$ 83,528 $ 114,953_ $ 11 279 987
7
City of Tamarac, Florida
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUNDS
Year Ended September 30, 1998
REVENUES
Taxes
Charges for services
Intergovernmental
Licenses and permits
Fines and forfeitures
Miscellaneous
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Transportation
Culture / recreation
Physical environment
Economic environment
Human services
Debt service.
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess of Revenues Over
(Under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
Capital leases
Total Other Financing Sources (Uses)
Excess of Revenues and Other
Financing Sources (Uses) Over
(Under) Expenditures
Fund Balances at Beginning of Year
Fund Balances at End of Year
General Fund
Variance
Favorable
Bud et
Actual
(Unfavorable )-
$ 11,494,205
$ 11,810,429
$ 316,224
941,001
1,155,388
'214,387
4,027,000
4,072,146
45,146
1,485,000
1,770,970
285,970
370,000
429,065
59,065
3.289.840
3,698,134
408,294
21,607.046
22,936,132
1,329,086
8,985,819
6,626,483
2,359,336
8,148.653
7,871,243
277,410
1,366.114
1,271,200
94,914
1,841,299
1,754,354
86,945
1,776,430
1,435,007
341,423
43,800
48,622
(4,822)
249,945
222,323
27,622
_
22,214
(22,214)
22,412.060
19,251,446
3,160,614
(805, 014)
160,000
(2,348,687)
101_.458
2,087,229
$ (2,892,243L
n - coc A Ana 7r)O
(160.000)
(2,218,092) 130,595
101.457 1)
2,116.635) 29,406
1,568,051 $ 4460,294
5,314,949
$ 6,883,000
The accompanying notes are an integral part of the financial statements.
[3
Special
Revenue Funds
Debt Service Fund
Variance
Variance
Favorable
Favorable
Budget
Actual
Unfavorable
Budget
Actual
(Unfavorable)
$ 2,880,274
$ 2,598,735
$ (281,539)
$ 770,320
$ 783,163
$ 12,843
2,574,350
2,986,236
411,886
-
-
-
592,199
697,787
105,588
-
-
-
186,542
437,005
250,463
25,000
39,283
14,283
6,233,365
6,719,763
486,398
795,320
822,446
27,126
7,182,716
6,001,553
1,181,163
-
-
2,403,240
1,026,841
1,376,399
-
-
-
196,125
13,592
182,533
-
-
-
2,663,122
1,250,063
1,413,059
-
-
-
_
-
465,000
485,000
(20,000)
_
-
330,320
309,560
20,760
12,445,203
8,292,049
4,153,154
795,320
794,560
760
6,211,838
(1,572.286)
4,639.552
-
27,886
27,886
2,367,815
2,218,092
(149,723)
-
-
-
421,086
540,518
119,432
-
-
-
2,788,901
2.758,610
30,291
-
-
-
$ (3,422 937)
1,186,324
$ 4,609,261
$ -
27,886
$ 27 88_6_�
3,277,420
4( 7Q,61�
S 4,463 744
S 442 728
(Continued)
E
City of Tamarac, Florida
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUNDS
Year Ended September 30, 1998
Totals
_
Memorandum Only)
Variance
Favorable
Budget
Actual
(Unfavorable)
REVENUES
Taxes
$ 15,144, 799
$15,192, 327
$ 47,528
Charges for services
3,515,351
4,141,624
626,273
Intergovernmental
4,619,199
4,769,933
150,734
Licenses and permits
1,485,000
1,770,970
285,970
Fines and forfeitures
370,000
429,065
59,065
Miscellaneous
3,501,382
4,174.422
673,040
Total Revenues
28.635,731
30,478.341
1,842,610
EXPENDITURES
Current:
General government
8,985,819
6,626.483
2,359,336
Public safety
15,331,369
13,872,796
1,458,573
Transportation
3,769,354
2,298,041
1,471,313
Culture lrecreation
2,037,424
1,767,946
269,478
Physical environment
4,439,552
2,685,070
1,754,482
Economic environment
43,800
48,622
(4,822)
Human services
249,945
222,323
27,522
Debt service:
Principal retirement
465,000
507,214
(42,214)
Interest and fiscal charges
330,320
309.560
20,760
Total Expenditures
35,652,583
28.338,055
7,314,528
Excess of Revenues Over
(Under) Expenditures
(7,016,852)
2,140,286
9.157,138
OTHER FINANCING SOURCES (USES)
Operating transfers in
2,527,815
2,218,092
(309,723)
Operating transfers out
(2,348,687)
(2,218,092)
130,595
Capital leases
522,544
641.975
119,431
Total Other Financing Sources (Uses)
701,672
641,975
(59,697)
Excess of Revenues and Other
Financing Sources (Uses) Over
(Under) Expenditures
$ (6,315,180)
2,782,261
$ 9 097 441
Fund Balances at Beginning of Year
8,121,755
Fund Balances at End of Year
$10,904,016
The accompanying notes are an integral part of the financial statements.
10
City of Tamarac, Florida
COMBINED STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS / FUND BALANCES
AND FUND EQUITY - ALL PROPRIETARY FUND TYPES
Year Ended September 30, 1998
OPERATING REVENUES
Charges for services
Other
Total Operating Revenues
OPERATING EXPENSES
BEFORE DEPRECIATION AND AMORTIZATION
Administrative costs
Operations and maintenance
Claims expense
Other services and charges
Total Operating Expenses Before
Depreciation and Amortization
Operating income before depreciation and amortization
DEPRECIATION AND AMORTIZATION
Operating income
NONOPERATING REVENUES (EXPENSES)
Interest income
Interest expense and fees
Gain (Loss) on disposal of fixed assets
NET INCOME
Add depreciation on contributed assets
Increase in retained earnings
Retained Earnings at Beginning of Year
Residual equity transfer
Retained Earnings at End of Year
Contributed Capital at Beginning of Year
Depreciation on contributed assets
Additions to contributed capital
Contributed Capital at End of Year
Total Equity at End of Year
Proprietary
Fund Tres
Total
Internal
(Memorandum
Enterprise
Service
Only)
$ 13,833,579
$ 3.612,536
$ 17,446,115
23,568
26,747
50,315
13,857.147
T 3.639,283_
17,496,430
288,231
1,906,192
2,194,423
6,852,807
-
6,852,807
-
459,798
459,798
3,404,471
-
3,404.471_
10.545,509
2.365,990
12,911.499
3.311.638
1,273,293
4,584,931
2,163.663
316,344
2,480,007
1.147.975
956,949
2,104.924
987,154
250,539
1.237,693
(1,181,851)
(32,613)
(1,214,464)
28,326
(7,129)
21,197
(166,371)
210,797
44,426
981,604
1,167,746
2,149,350
631.615
8.929
640,544
1,613,219
1,176,675
2,789.894
6,559.953
1.549,881
8,109,834
(24.817)
-
(24,817)
8,148,355
2,726,556
10,874.911
27,334,475
28,177
27,362,652
(631,615)
(8,929)
(640,544)
2.127.947
-
2,127,947
28,830.807
19.248
28.850.055
$ 36,979,162 2� 39 724 666
The accompanying notes are an integral part of the financial statements.
iR
City of Tamarac, Florida
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
Year Ended September 30, 1998
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:
Operating income
Adjustments to Reconcile Operating Income
to Net Cash Provided by Operating Activities:
Depreciation
Amortization
Changes in Assets and Liabilities:
(Increase) Decrease In -
Accounts receivable
Due from other governments
Prepaid insurance
Inventories
Due from other funds
Increase (Decrease) In -
Accounts payable
Accrued liabilities
Customer deposits
Claims payable
Net Cash Provided by Operating Activities
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES:
Acquisition of fixed assets
Proceeds from sale of fixed assets
Capital contributions
Principal payments - bond and notes payable
Bond interest and fee payments
Net Cash Provided (Used) by Capital
and Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Sale of investments
Investment income
Net Cash Provided by Investment Activities
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS AT END OF YEAR
SUPPLEMENTAL DISCLOSURE OF NON -CASH
INVESTING, CAPITAL AND FINANCING ACTIVITIES:
Proprietary Fund Types Totals
Internal (Memorandurr
Enterprise Service Only)
$ 1.147,975 $ 956,949 $ 2,104,924 1
2, 094, 826
68,837
108,958
(500)
(8,540)
(6,311)
(48,611)
(127,972)
96,649
3,325,311
316,344 2,411,170'
68.837
(125,000)
(16,042
-
(500
10,255
10,258
-
(8,540
(1,119)
(7,430
(50,948)
(99,559
4,343
(123,629
-
96,649
(673,000)
(673,000
437,827 3,763,138
(1,426,242) (168,444)
(1,594,686
28,326 -
28,326
1,487,337 -
1,487,337
(952,342) (153,775)
(1,106,117
(1,181,851) (32,613)
(1,214,464
(2,044,772) (354.832) (2,399,604 ,
1,085,440 -
987,154 250,539
2.072,594 250.539
3,353,133 333,534
1,085,440 ,
3,686,667 ■
12.659,820 4,229,623 16,889,443
$ 16,012,963 $ 4,5636157 �$ 20,576,110
Contributions of fixed assets from subdividers $ 640.610 $ - $ 640,610
Gain on disposal of fixed assets 28.326 7,129 35,455
Depreciation on contributed capital 631,615 8,929 640,544
Financing of fixed asset acquisition 101,458 - 101,458
The accompanying notes are an integral part of the financial statements.
12
City of Tamarac, Florida
COMBINED STATEMENT OF CHANGES IN
NET ASSETS AVAILABLE FOR BENEFITS
ALL PENSION TRUST FUNDS
Year Ended September 30, 1998
OPERATING REVENUES
Intergovernmental revenue
Investment income
Contributions
Total Operating Revenues
OPERATING EXPENSES
Administrative costs
Benefits paid
Total Operating Expenses
INCREASE IN NET ASSETS
AVAILABLE FOR BENEFITS
Net assets available for benefits
Beginning of Year
Net assets available for benefits
End of Year
Total
Pension
Trust
$ 447,497
2,120,506
1,599,874
102,709
n,
1,571,816
2,596,061
35,653,891
$ 38,249,952
The accompanying notes are an integral part of the financial statements.
13
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS
Year Ended September 30, 1998
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Tamarac, Florida (the "City") was incorporated in 1963 and is a political subdivision of
the State of Florida located in northwestern Broward County. The City operates under a
Commission -Manager form of government, with the legislative function being vested in a five -
member commission. The City Commission is governed by the City Charter and by state and local
laws and regulations. The City Commission is responsible for establishment and adoption of
policy. The City provides the following full range of municipal services authorized by its charter:
public safety, highways and streets, sanitation, health and social services, culture, recreation,
public improvements, planning and zoning, water and sewer and general administrative services.
The accounting policies of the City conform to generally accepted accounting principles (GAAP)
as applicable to governments. The following is a summary of the more significant policies:
A. The Reporting Entity
The accompanying general-purpose financial statements present the combined financial
positions, results of operations and cash flows of the applicable fund types and account groups
governed by the City Commission of the City of Tamarac, Florida. The reporting entity for the City
includes all functions of government for which the City Commission is considered to be financially
accountable.
Based upon the application of the criteria as set forth in Governmental Accounting Standards
Board Statement No. 14, The Financial Reporting Entity, a component unit was identified.
Although the component unit is a legally separate entity, in substance, it is a part of the City's
operations and so the data from this unit is combined (through "blending") with data of the primary
government.
Blended Component Unit
The Employee Pension System (EPS) covers substantially all employees of the City of Tamarac.
The City Commission does not appoint a voting majority of the EPS pension board; however, the
component unit was created for the exclusive benefit of the City of Tamarac employees. The City
and EPS participants are obligated to fund all EPS costs based upon actuarial valuations. The
City and pension boards are authorized to establish benefit levels and to approve actuarial
assumptions used in the determination of contribution levels. The EPS is presented in the City's
financial statements as three Pension Trust Funds: General Employees Retirement, Police
Officers Retirement, and Firefighters Retirement.
B. Fund Accounting
The accounts of the City are organized on the basis of funds and account groups, each of which is
considered a separate accounting entity. The operations of each fund are accounted for with a
separate set of self -balancing accounts that are comprised of its assets, liabilities, fund equity,
revenues and expenditures, or expenses, as appropriate. Government resources are allocated to
and accounted for in individual funds based upon the purposes for which they are to be spent and
the means by which spending activities are controlled. An account group is a financial reporting
device designed to provide accountability for certain assets and liabilities that are not recorded in
the funds because they do not directly affect net expendable available financial resources. The
purpose of the City's various funds and account groups are as follows:
14
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
B. Fund Accounting (Continued)
Governmental Fund Tvoes
General Fund - The General Fund is the general operating fund of the City. It is used to account
for all financial resources, except those required to be accounted for in another fund.
Special Revenue Funds - The Special Revenue Funds are used to account for the proceeds of
specific revenue sources that are legally or administratively restricted to expenditures for specified
purposes.
Debt Service Fund - The Debt Service Fund is used to account for the accumulation of resources
for, and the payment of, general long-term debt principal, interest and related costs.
Capital Projects Fund - The Capital Projects Fund is used to account for financial resources
designated for the acquisition or construction of major capital facilities and other project oriented
activities (other than those financed by proprietary funds).
Proprietary Fund Types
Enterprise Fund - The Enterprise Fund is used to account for operations that are financed and
operated in a manner similar to private business enterprises, where the intent of the governing
body is that the costs (expenses, including depreciation and amortization) of providing goods or
services to the general public on a continuing basis be financed or recovered primarily through
user charges. The City's Enterprise Fund is a separate water and sewer utility system.
Internal Service Funds - The Internal Service Funds are used to account for the financing of
services provided by one department to other departments of the City on a cost -reimbursement
basis. The City maintains three Internal Service Funds to account for management information
services, maintenance of City vehicles, and self-insurance of general and auto liability and
workers' compensation risks.
Fiduciary Fund Types
Trust and Agency Funds - The Trust and Agency Funds are used to account for assets held by
the City in a trustee capacity or as an agent for individuals, private organizations, other
governments and/or funds. The City has three Pension Trust Funds, one Agency Fund, and one
Expendable Trust Fund.
A count Groups
General Fixed Assets - The General Fixed Assets Account Group is used to account for all fixed
assets of the City, except fixed assets of the City's proprietary funds.
General Long -Term Debt - The General Long -Term Debt Account Group is used to account for all
long-term liabilities expected to be financed from governmental funds.
1K
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
C. Measurement Focus
Governmental Fund Types
General, Special Revenue, Debt Service, and Capital Projects Funds are accounted for on a
spending or financial flow measurement focus. This means that only current assets and current
liabilities are generally included on the balance sheets. Accordingly, the reported undesignated
fund balances (net current assets) are considered measures of available, expendable or
appropriable resources. Governmental Fund Type operating statements present increases
(revenues and other financing sources) and decreases (expenditures and other financing uses) in
net current assets.
Proprietary Fund Types
Enterprise and Internal Service Funds are accounted for on an . income determination
measurement focus. Accordingly, all assets and liabilities are included on their balance sheets,
and the reported fund equity (total reported assets less total reported liabilities) provides an
indication of the economic net worth of the fund. Operating statements for Proprietary Fund Types
(on an income determination measurement focus) report increases (revenues) and decreases
(expenses) in total economic net worth. Based on the accounting and reporting standards set forth
in Governmental Accounting Standards Board (GASB) Statement No.. 20, Accounting and
Financial Reporting for Proprietary Funds and Other Governmental Entities. That Use Proprietary
Fund Accounting, the City has elected to apply only the accounting and reporting pronouncements
issued by the Financial Accounting Standards Board prior to November 30, 1989,
Fiduciary Fund Types
The Agency Funds and Expendable Trust Funds (except pension trust funds) are accounted for
like governmental funds; however, the Agency Funds are custodial in nature (assets equal
liabilities) and do not involve measurement of results of operations. The Pension Trust Funds are
accounted for similar to Proprietary Funds,
Account Groups
The General Long -Term Debt and General Fixed Assets Account Groups are concerned only with
the measurement of financial position. They are not involved with the measurement of results of
operations. Long-term debts, which are not intended to be financed
Proprietary
wh ch are not
are accounted for in the General Long -Term Debt Account Group. F zed ass
used in Proprietary Fund operations, are accounted for in the General Fixed Assets Account
Group.
Dr Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the
accounts and reported in the financial statements. Basis of accounting relates to the timing of the
measurements made, regardless of the measurement focus applied.
16
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
D. Basis of Accounting (Continued)
All Governmental Funds and Fiduciary Funds (except Pension Trust Funds) are accounted for
using the modified accrual basis of accounting. Under the modified accrual basis, revenues are
recognized when they become measurable and available as net current assets. Revenues
susceptible to accrual include intergovernmental revenues, charges for services and investment
earnings. Expenditures are generally recognized, under the modified accrual basis of accounting,
when the related fund liability is incurred. Exceptions to this general rule include principal and
interest on general long-term debt which are recognized when due.
All Proprietary Funds and the Pension Trust Funds are accounted for using the accrual basis of
accounting. Revenues are recognized when they are earned and expenses are recognized when
they are incurred.
E. Budgetary Procedures and Accounting
The following procedures are used to establish the budgetary data reflected in the financial
statements:
(1) Prior to July 30 of each year, the City Manager submits to the City Commission a
proposed operating budget for the fiscal year commencing the following October
1. The operating budget includes proposed expenditures and the means of
financing such expenditures.
(2) Public hearings are held to obtain taxpayer comments.
(3) Prior to October 1, the budget is legally enacted through passage of a resolution.
(4) Formal budgetary integration is employed as a management control device during
the year for the General Fund, Special Revenue Funds, Debt Service Fund, and
Proprietary Funds. The City is not legally required to report the Proprietary Funds'
budgets; therefore, they are excluded from this report.
(5) The annual budgets for the General Fund, Special Revenue Funds (except for
Drainage Improvement Fund) and Debt Service Fund are adopted on a basis
consistent with generally accepted accounting principles (GAAP). Budgets for
Proprietary Funds are adopted to comply with charter requirements.
(6) The level of control at which expenditures may not exceed budget is at the
_ appropriation center (by fund) level. The City Manager is authorized to transfer
budgeted amounts within individual appropriation centers; any revisions that alter
the total expenditures of any appropriation center within a fund must be approved
by the City Commission. Appropriations lapse at year end, except for grants and
shared revenues from other governmental units which do not lapse at year-end
and are only reported to the extent of revenues recognized, and expenditures
incurred for the current year. Supplemental appropriations of approximately
$2,832,000 were necessary during the year. Individual amendments were not
material in relation to the original adopted budget.
17
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
E. Budgetary Procedures and Accounting (Continued)
(7) Encumbrance accounting, under which purchase orders, contracts and other
commitments for the expenditures of monies are recorded in order to reserve that
portion of the applicable appropriation, is employed in the governmental fund
types. Encumbrances are reappropriated in the succeeding year's budget.
(8) Budgeted amounts shown in the accompanying financial statements reflect
revisions to the budget originally adopted by the City Commission.
F. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, demand deposits, and in accordance with
GASB Statement No. 9, each fund's equity in the City's investment pool since each fund can
deposit or effectively withdraw cash at any time without prior written notice or penalty. Cash and
cash equivalents on the Proprietary Funds cash flow statements are in agreement with the
amounts listed on the related Balance Sheets as "Cash and Equity in Pooled Cash and
Investments."
G. Investments
Investments are reported at market value. Income, including the change in fair value, from
investments held by the individual funds is recorded in the respective fund as it is earned. All other
investments owned by the City are accounted for in pooled cash and temporary investment
accounts. Income earned from this pooling of investments is allocated monthly to the respective
funds based upon average daily balances.
H. Receivables
Property Taxes Receivable
Under Florida law, the assessment of all properties and the collection of all county, municipal and
school board property taxes are consolidated in the offices of the County Property Appraiser and
County Tax Collector. The laws of the State regulating tax assessments are also designed to
assure a consistent property valuation method statewide. State statutes permit municipalities to
levy property taxes at a rate of up to 10 mills.
All real and tangible personal property taxes are due and payable on the levy date of November 1
of each year or as soon thereafter as the assessment roll is certified by the Broward County
Property Appraiser (levy date). Broward County mails to each property owner on the assessment
roll a notice of the taxes due and the County also collects the taxes for the City. Taxes may be
paid upon receipt of such notice from the County, with discounts at the rate of 4% if paid in the
month of November, 3% if paid in the month of December, 2% if paid in the month of January, and
t% if paid in the month of February. Taxes paid during the month of March are without discount
and all unpaid taxes on real and tangible property become delinquent on April 1 (the lien date) of
the year following the year in which taxes were assessed. Procedures for collecting delinquent
taxes, including applicable tax certificate sales, are provided for by the laws of Florida.
18
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
H. Receivables (Continued)
Accounts Receivable
Operating revenues in the Utilities Enterprise Fund are generally recognized on the basis of cycle
billings rendered monthly. Revenues for services delivered during the last month of the fiscal year
that have not been read by September 30 are accrued based on meter readings for the applicable
consumption taken at the beginning of October and billed in October.
I. Short -Term Interfund Receivables/Payables
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. These receivables and payables are classified as due from other
funds or due to other funds on the balance sheet. Short-term interfund loans are classified as
interfund receivables/payables.
J. Inventories
Inventories are valued at cost, which approximates market, using the first -in, first -out method. The
costs of inventories are recorded as expenditures when consumed rather than when purchased.
K. Restricted Assets
The use of certain assets of the Utilities Enterprise Fund is restricted by specific provisions of
bond resolutions and other agreements. Assets so designated are identified as restricted assets
on the balance sheet.
L. Property, Plant and Equipment
Property, plant and equipment purchased in the Governmental Fund Types are recorded as
expenditures at time of purchase. Such assets are capitalized at cost in the General Fixed Assets
Account Group, except for certain improvements other than buildings, which include roads,
bridges, curbs and gutters, sidewalks and lighting systems. Gifts or contributions are recorded in
the General Fixed Assets Account Group at fair market value on the date received. No
depreciation has been provided on general fixed assets.
Property, plant and equipment purchased in the Enterprise and Internal Service Funds are
recorded at cost when purchased. Contributed fixed assets are recorded at fair market value on
the date received. Depreciation is provided using the straight-line method.
19
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
L. Property, Plant and Equipment (Continued)
The estimated useful lives of the various classes of depreciable assets are as follows:
Assets Years
Buildings....................................................... 27-33
Improvements other than buildings ............. 27-40
Machinery, equipment and vehicles ........... 5
Improvements are capitalized and depreciated over the remaining useful lives of the related fixed
assets, as applicable.
M. Unamortized Costs/Expenses
In Governmental Fund Types, bond discounts and issuance costs are recognized in the current
period. Bond discounts and issuance costs for Proprietary Fund Types are deferred and
amortized over the term of the bonds using the effective interest method. Bond discounts and
issuance costs are presented as a reduction of the face amount of bonds payable.
Unamortized expenses in the Utilities Enterprise Fund also include the sewer treatment plant
abandoned in 1987. Such costs have been capitalized and are being amortized over the
remaining life of the bonds used to construct the facility, which was 24 years at the time of
abandonment.
N. Compensated Absences
Vested or accumulated vacation, annual leave, and other salary -related payments associated with
the payment of compensated absences that are expected to be liquidated with expendable
available financial resources are reported as an expenditure and a fund liability of the
governmental fund that will pay it. Vested or accumulated vacation, annual leave, and other
salary -related payments that are not expected to be liquidated with expendable available financial
resources are reported in the General Long -Term Debt Account Group. Vested or accumulated
vacation, annual leave, and other salary -related payments of Proprietary Fund Types are
recorded as an expense and liability of those funds as the benefits accrue to employees. No
liability is recorded for nonvesting accumulated rights to receive sick pay benefits.
At September 30, 1998, the estimated liability for compensated absences for employees whose
salary is paid from the General Fund, calculated using current rates, is recorded in both the
General Long -Term Debt Account Group and General Fund based on whether the liability will be
liquidated with expendable available financial resources. The compensated absence liability for
employees whose salary is paid from Proprietary Funds is reflected as the estimated liability for
compensated absences and included in accrued liabilities in the Proprietary Funds.
O. Deferred Revenues
Deferred revenues include amounts collected before revenue recognition criteria are met and
receivables which, under the modified accrual basis of accounting, are measurable, but not yet
available. The deferred items consist primarily of license and permit revenues.
go]
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
P. Fund Equity
Contributed capital is recorded in Proprietary Fund Types that have received capital grants or
contributions from developers, customers or other funds. Reserved retained earnings is defined
as total restricted assets provided from operations for debt service and contingencies net of
current liabilities payable from these restricted assets. Reserved fund balances represent those
portions of fund equity that cannot be appropriated for expenditure or are legally segregated for a
specific future use. Designated fund balances represent tentative plans for future use of financial
resources.
Q. Grants
Grants received or used for purposes normally financed through Governmental Fund Types are
accounted for within the City's existing governmental funds. Revenues received or used from
grants for Governmental Fund Types are recognized as intergovernmental revenues when they
become susceptible to accrual, that is, both measurable and available (modified accrual basis).
R. Total Columns on Combined Statements
Total columns on the combined statements are captioned "Memorandum Only" to indicate that
they are presented only to facilitate financial analysis. Data in these columns do not present
financial position, results of operations, or cash flows in conformity with generally accepted
accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations
have not been made in the aggregation of this data.
S. Change in Reporting Entity
Based on the application of Governmental Accounting Standards Board Statement No. 32
("Accounting and Financial Reporting for Internal Revenue Code Section 457 — Deferred
Compensation Plans") it was determined that a change in reporting entity had taken place and the
deferred compensation plans were eliminated from the City's financial statements. At September
30, 1997, the plans had investments and fund balance -reserved of $4,394,417,
NOTE 2 - DEPOSITS AND INVESTMENTS
The City, for accounting and investment purposes, maintains a cash and investment pool for use
by all City funds. This gives the City the ability to invest large amounts of idle cash for short
periods of time and to maximize earning potential. Each fund type's portion of this pool is
displayed on the combined balance sheet as cash and equity in pooled cash and investments.
Income earned on pooled cash and investments is allocated to the respective funds based on
relative month -end balances. In addition, cash and investments are separately held by the City's
Enterprise and Trust Funds and related investment income is recorded in these funds.
21
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS. (Continued)
Year Ended September 30, 1998
A. Deposits
Deposits consist of interest and non -interest bearing demand accounts and certificates of deposit.
All deposits are entirely insured by federal depository insurance or collateralized by the multiple
financial institution collateral pool pursuant to the Public Depository Security Act of the State of
Florida and are considered insured for risk disclosure purposes. At September 30, 1998, the
carrying amount of the City's deposits totaled $45,144.
B. Investments
The City's investment policy is governed by local ordinances, resolutions and bond covenants.
Allowable investments include, United States government obligations, guaranteed United States
agency short-term issues, Florida bank certificates of deposit, and investments authorized by City
Commission. The investments held in the Pension Trust Funds may be invested within the
authority of the trustees of the pension plans and Florida statutes.
The City's investments at September 30, 1998 are summarized below by type and level of risk
assumed and are carried at market. Category 1 includes investments that are insured or
registered or for which the securities are held by the City or its agent in the City's name. Category
2 includes uninsured and unregistered investments, with securities held by the counterparty's trust
department or agent in the City's name. Category 3 includes uninsured and unregistered
investments for which the securities are held by the counterparty, or by its trust department or
agent, but not in the City's name.
Throughout the fiscal year, the City invested only in types of investments as listed below:
Category
Carrying
2 3 Value
U.S. Treasury Securities $ 4,457,620 $ - $ - $ 4,457,620
U.S. Government Agency Securities 19,251,827 - - 19,251,827
Overnight Repurchase Account - 2,032 000 - 7,032,000
$23,709,447 $ 7,032,000 30,741,447
Local Government Surplus Funds Trust Fund
Pension Plan
Total, Investments
2,602,014
37,929,819
$ 71,273,280
The Employee Pension Plan investments are held separately from those of other City funds. As
prescribed by the plan documents, the plan administrator is authorized to invest plan assets in
obligations of the U.S. Government and various mutual and money market funds, which are held
by the plan administrator and not in the City's name. At September 30, 1998 and during the year,
pension plan assets were invested in various securities.
22
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
C. Balance Sheet Classification
As of September 30, 1998, deposits and investments of the City totaled $71,318,424. These
amounts are reported on the combined balance sheet as follows:
Balance Sheet Classifications
Cash and
Equity In
Pooled Cash
and
Funds
Investments
Investments
General Fund
$ 6,639,132
$ -
Special Revenue Funds:
Unrestricted
4,250,122
-
Restricted
19,717
-
Debt Service
29,520
-
Capital Projects Fund
83,528
-
Enterprise Fund:
Unrestricted
10,596,181
-
Restricted
5,416,772
406,130
Internal Service Funds
4,563,157
-
Trust and Agency Funds
1,384,346
37,929,819
Total
$ 32,982.475
$ _ 38,335,949
As of September 30, 1998, cash and cash equivalents are reported on the combined balance
sheet as follows:
Cash and Equity in Pooled Cash and Investments
Unrestricted
Restricted
Total
23
Enterprise Internal
Funds Service Funds
$ 10,596,181 $ 4,563,157
5,416,772 -
16,012,953 4,563,157
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
NOTE 3 - PROPERTY, PLANT AND EQUIPMENT
A. General Fixed Assets Account Group
The following is a summary of changes in the General Fixed Assets Account Group for the year
ended September 30, 1998:
Balance
Balance
October
September
1 1997
Additions
Deletions 30, 1998
Land
$ 2,311,829
$ 135,358
$ - $ 2,447,187
Building and improvements
13,379,491
180,660
- 13,560,151
Equipment
4,091,734
831,300
(451,960) 4,471,074
Construction in progress
1 554
152,433
(1,554) 152,433
Total 119,784,608 1,299,751 453 514 $220,630,845
B. Proprietary Fund Fixed Assets
The following is a summary of property, plant and equipment in the Enterprise and Internal
Service Funds at September 30, 1998:
Land
Buildings
Improvements other than buildings
Machinery and equipment
Construction in progress
Less: accumulated depreciation
Total
Internal
Enterprise
Service
Fund
Funds
$ 488,883
$ -
1,825,470
-
54,047,681
-
2,327,152
1,945,249
773.715
-
59,462,901 1,945,249
21 207.369 (973,204)
$ 38,255.532 1972,045
24
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
NOTE 4 - LONG-TERM DEBT
A. General Long -Term Debt
The following is a summary of changes in liabilities reported as long-term debt for the year ended
September 30, 1998:
Long -Term Debt at October 1, 1997
Additions:
Issuance of note payable
Retirements:
Notes payable
Water and sewer utility revenue refunding bonds
General obligation bonds
Decrease in liability for compensated absences
Long -Term Debt at September 30, 1998
Long -Term Debt at September 30, 1998 consists of:
Water and sewer revenue refunding bonds
General obligation bonds
Notes payable
Compensated absences
Parking lot remediation
Total Long -Term Debt
General
Long -Term
Internal
Debt
Enterprise
Service
Account
Fu� nds
Funds
Group
$ 18,810,187
$ 662,061
$ 6.994,091
101.458
-
641,975
(22,214) (153,775) (207,496)
(930,128) - (485,000)
182 682
$ 17,959,303 $ 508,286 688
$ 17,880,059 $ - $ -
5,090,000
79,244 508,286 830,040
580,048
_ 260,800
17�r 959�303508�286 688
25
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
B. Summary of Bond and Loan Resolutions
Bonds Pavable
The Water and Sewer Utility Revenue Refunding Bonds consist of two issues. The Series 1992
bonds bear interest rates varying from 4.7% to 5.9% and mature in varying annual installments
through 2011 with bonds outstanding of $10,890,000 included in long-term debt, net of
unamortized discount and issuance costs of $256,532. The taxable Series 1996 bonds bear
interest rates varying from 5.3% to 6.5% and mature in varying annual installments through 2009
with bonds outstanding of $7,880,000 included in long-term debt, net of unamortized discount,
issuance costs, and deferred loss amount on refunding of $633,409. The taxable Series 1996
bonds were issued on a parity with the 1992 Series. The bonds will be repaid from revenues
derived from water and sewer service charges. The bond indentures contain rate covenant
calculations and restrictions on maintenance of and flow of monies through various restricted
accounts, minimum amounts to be maintained in various funds, type of investments to be held,
and reporting requirements.
The General Obligation Bonds, Series 1992, bear interest rates varying from 4.8% to 5.9% and
mature in varying annual installments through 2007. The bonds will be repaid from property taxes
earmarked for debt service. The bond indentures contain limitations and restrictions related to
pledges, maintenance of and flow of monies through various restricted accounts, and minimum
amounts to be maintained in various funds. General Obligation Bonds of $5,090,000 were
outstanding at September 30, 1998.
Notes Payable
At September 30, 1998, a note payable of $221,962 was outstanding for the lease purchase of a
fire truck and three rescue vehicles. The note bears interest at a rate of 4.55% and is payable in
annual installments through 2000.
At September 30, 1998, a note payable of $19,344 was outstanding for the lease purchase of a
JetVac truck. The note bears interest at a rate of 4.3% and is payable in monthly installments
through 1999.
At September 30, 1998, a note payable of $508,286 was outstanding for the lease purchase of a
computer system. The note bears interest at a rate of 4.93% and is payable in annual
installments through 2001.
At September 30, 1998, a note payable of $93,340 was outstanding for the lease purchase of a
fire rescue vehicle. The note bears interest at a rate of 4.62% and is payable in annual
installments through 2000.
At September 30, 1998, a note payable of $398,540 was outstanding for the lease purchase of a
platform ladder truck. The note bears interest at a rate of 4.73% and is payable in annual
installments through 2005.
9:
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
B. Summary of Bond and Loan Resolutions (Continued)
At September 30, 1998, a note payable of $176,098 was outstanding for the lease purchase of a
security management system of which $79,244 is included in Enterprise Fund and $96,854 is
included in the General Long -Term Debt Account Group. The note bears interest at a rate of
4.74% and is payable in annual installments through 2002.
Parkin Lot Remediation
At September 30, 1998, a liability for parking lot remediation was recorded based on the
estimated amount necessary to remediate a municipal parking lot from environmental
contamination. The City is awaiting instructions from the Florida Department of Environmental
Protection before proceeding with clean up.
Defeased Issues
In prior years, the City defeased certain general obligation and other bonds by placing the
proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on
the defeased bonds. Accordingly, the trust account assets and the liability for the defeased bonds
are not included in the City's financial statements. At September 30, 1998, $9,410,000 of water
and sewer revenue bonds outstanding is considered defeased.
C. Annual Debt Service Requirements to Maturity
The annual debt service requirements to maturity on obligations outstanding at September 30,
1998 are as follows:
Notes Pa able
Enterprise
Fund
Internal Service Fund
Total Government Funds
Total
Principal
Interest
Total
Prinoi al
Interest
Total
Principal_
Interest
1999
$ 18,456 $
3,757
$ 22,213
$161,350
$ 25,038
$186,388
$ 221.548
211,551
$ 38,857
28,833
$260,405
240,384
2000
19,332
2,882
22,214
22,213
169.298
177.638
17,090
8,750
186,388
186,388
102,718
18,721
121,439
2001
20,248
1,965
-
107.552
13,887
121,439
2002
21,208
1,006
22,214
-
_
59,372
8,826
68,198
-
127 299
_9 097
136,396
Thereafter
Thereafter
-
-
Total
$ 79,244 S
9,610
$ 8-� 54
S508,286
5 50,878
g559,164
5 830.040
g118.221
94 882�61
_
27
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
C. Annual Debt Service Requirements to Maturity (Continued)
Bonds Payable
General Long -Term
Enterprise Fund
Debt Account Group
Princi al
Interest
Total
Principal
Interest
Total
1999
$ 1,100.000
$ 1,123,536 $
2,223,536
$ 505,000 $
284.070 $
789,070
2000
1,170,000
1,063,162
2,233,162
530,000
258,315
788.315
2001
1,235,000
997,345
2,232,345
560,000
230,225
790,225
2002
1,300,000
925,496
2,226,496
585.000
199,985
784,985
Thereafter
13,965,000
4,1197,530 _
18,162,530
2,910 000
462 745
3,372,745
Total
18,770,000
8,308,069
27,078,069
5,090,000
1,435,340
6,525.340
Less:
Unamortixed bond
discount, issuance costs
and deferred loss amount _
on refunding (889,941) - 889 941 -
Total 17�880 059 8$ ,30>� 26� 5� ,090,000 $ 1,435,340 6� _ ,525 340
D. Debt Coverage - Water and Sewer Revenue Bonds
Bond covenants require the current operating income and interest earnings to be at 110%, of
current operating income and other income, including contributed impact fees to be at 120%, of
the current principal payments and interest expense on the bonds as defined in the bond
indenture. The bond coverage computation follows:
Operating revenues
Operating expenses before depreciation,
amortization, and payments in lieu of taxes
Operating income
Other income
Interest earnings
Contributed impact fees
Amount available for debt coverage
Debt payments
Principal
Interest
Amount to be covered
Debt coverage
Minimum coverage
Excess coverage
110% Test 120% Test
$ 13,857,147 $ 13,857,147
10,025,556 10_ , �025.,556
3,831,591 3,831,591
572,368 572,368
- 1,487,337
4.403 959 5,891 296
$ 1,045,000 $ 1,045,000
1,178,811 1-- 17�11
2�223811 2�81 1
198% 265%
110% 120%
88% 145%
28
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
NOTE 5 - INTERFUND RECEIVABLES AND PAYABLES
Interfund receivables and payables at September 30, 1998 are as follows:
General
Debt Service
Special Revenue — Fire/Rescue
Special Revenue — Stormwater Management
Special Revenue — Grants
Pension Trust Funds — General Employees' Retirement
Pension Trust Funds — Firefighters' Retirement
Enterprise Fund
Internal Service — Management Information Services
Internal Service — Fleet Services
Internal Service — Insurance Services
Total
NOTE 6 - EMPLOYEE RETIREMENT PLANS
A. 401(a) Plans
Due
Due
From
To
Other
Other
Funds
Funds
$ 515,782
$ -
-
472,340
134,020
-
693
-
-
34,422
-
17,286
-
133,877
6,311
-
549
-
487
-
83
-
657 925 $657,925
In the year ending September 30, 1996, the City adopted a money purchase retirement plan for
the City Manager, City Attorney, and executive and managerial/professional employees of the
City. The Plan is a qualified defined contribution plan under Internal Revenue Code Section
401(a). The terms of the Plan agreement require the City to annually contribute 10% of each
participant's earnings and a mandatory contribution by each participant, of 5% of earnings with an
option to contribute 10%, except for the City Manager who is required to contribute 10% of
earnings. For the year ended September 30, 1998, the City's contribution to the Plan was
$228,172.
B. Employee Pension System
(1) Plan Description
Substantially all full-time permanent employees of the City of Tamarac, Florida participate in the
Employee Pension System (EPS), a single -employer contributory defined benefit pension plan.
The EPS was established by the City in accordance with City ordinance and state statutes and
covers all eligible employee groups (General Employees, Firefighters, and Police). Assets
accumulated for one employee group may be legally used to pay benefits for any employee
group. The EPS provides retirement, death and disability benefits. The benefit provisions are
established and may be amended under the authority of City Ordinance. The EPS provides that a
cost -of -living adjustment of up to 2% shall be payable for any year in which the Plan has an
actuarial gain. This has been interpreted by the Board and its attorney as applied on a group by
group basis.
29
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
(1) Plan Description (Continued)
The EPS issues a publicly available financial report that includes financial statements and
required supplementary information. The report may be obtained by writing to the City of
Tamarac, Florida, Attn: Finance Department, 7525 NW 88' Avenue, Tamarac, Florida 33321-
2401.
(2) Funding Policy
Each full-time regular employee of the City must participate in the EPS starting on the first day of
employment, except for the City Manager, City Attorney, and certain employees in an executive or
managerial/professional position. All participants, except firefighters, are required to contribute 5%
of pretax earnings; firefighters must contribute 8.5% of pretax earnings. The City is required to
contribute an actuarially determined amount. Contribution requirements of the Plan members and
the City are established and may be amended by City Ordinance. In addition, certain Broward
Sheriffs Office employees are covered by the EPS for which contributions are made by Broward
County based on rates determined by State Statute. The rates range from 16.45% to 27.93%.
(3) Annual Pension Cost and Net Pension Obligation
The City's annual pension cost and net pension obligation for the EPS for the current year were
as follows:
The required City contribution for the fiscal year beginning October 1, 1997 was $1,055,417 as
shown below:
Required City Contribution
Fiscal Year Beginning October 1,
1997
General Police Fire
Total
Total Required City and
State Contribution
$ 371,296 $ 345,502 $ 694,895
$ 1,411,693
Expected State Premium
Tax Refund
N/A 212,744 143,532
_ 356,276
Remaining City Contribution
$ 371 296 132,758 551 363
�1 055 417
30
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
(3) Annual Pension Cost and Net Pension Obligation (Continued)
Assumptions are made each year regarding the expected premium tax refund from the State. Any
amount received in excess of the expected premium tax refund for a particular year may be used
to reduce City contributions directly for such year. Similarly, any amount by which the premium tax
refund is less than the estimate must be made up by the City.
Required City Contribution
Fiscal Year Beginning„October 1, 1997
General
Police
Fire
Total
Total Required City & State
Contribution
$371,296
$345,502
$694,895
$1,411,693
As % of Payroll
6.29%
36.41%
23.84%
14A5%
Expected State Premium
Tax Refund
N/A
212,744
143,532
356,276
As % of Payroll
N/A
22.42%
4,92%
3.65%
Remaining City Contribution
371,296
132,758
551,363
1,055,417
As % of Payroll
6,29%
13.99%
18.92%
10.81 %
The actual City contribution for the fiscal year beginning October 1, 1997, was $836,206
calculated as shown below:
General
Police
Fire
Total
Total Required City and State Contribution
$ 371,296
$ 345,502
L694.895
$ 1,411.693
Actual Contributions'
State Premium Tax Refund
N/A
221,635
225,862
447,497
Broward County
Sheriffs Office Contribution
6,042
218,265
N/A
224,307
Amount Considered Employee Portion
(1,824)
(43,499)
-
(45,323)
Amount Considered Employer Portion
4,218
174,766
-
_ 178,984
City Contribution
367,173
-
469,033
836,206
Total Contributions
$ 371,391
$ 396,401
$ 694,895
$ 1,462 fi87
Excess Broward County Sheriffs Office
Contributions and/or State Premium Tax Refund
$ 95
$ 50,899
$ -
$ 50,994
The City had no net pension obligation at the end of the year
31
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
(3) Annual Pension Cost and Net Pension Obligation (Continued)
The annual pension cost and net pension obligation for prior years was as follows:
(1)
Fiscal
Year
1997/98
1996/97
1995/96
(2)
Annual
Required
Contribution
(3)
Percentage
Contributed
$ 1,411,693 104%
1,330,130 112
1,343,201 102
The annual required contribution for the current year was determined as part of the October 1,
1997 actuarial valuation using the entry age normal actuarial cost method. The actuarial
assumptions included (a) 7.75% investment earnings rate, and (b) projected salary increases per
year of 7.00% for general employees and police officers and 7.5% per year for fire fighters. Both
(a) and (b) included an inflation component of 4% per year. The assumptions do not include
postretirement benefit increases due to the fact increases are only created when a significant
actuarial gain is determined. The actuarial value of assets was determined by using a method
which recognizes actual investment income in excess of assumed investment income evenly over
a four-year period.
NOTE 7 - SEGMENT INFORMATION FOR ENTERPRISE FUND
Water and sewer services provided by the City are financed by user charges. Segment
information for the year ended September 30, 1998 for these services is as follows:
Total
Operating revenues $ 13,857,147
Depreciation and amortization expense 2,163,663
Operating income 1,147,975
Non -operating income (expense) - net (166,371)
Payment in lieu of taxes 519,953
Net income 981,604
Current year capital contributions/fixed asset transfers 2,127,947
Property, plant and equipment - additions 1,527,700
Networking capital 11,556,106
Total assets 57,486,768
Bonds and other long-term liabilities payable from
operating revenues 17,880,059
Total fund equity 36,979,162
32
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
NOTE 8 - CONTRIBUTED CAPITAL
During the year, contributed capital of the Proprietary Funds changed by the following amounts:
Contributed capital at October 1, 1997
Additions:
Developer distribution systems
Impact fees
Deductions:
Current year depreciation on
contributed assets
Contributed capital at September 30, 1998
Enterprise
Fund
Intemal
Service
Utilities
Funds
$27,334,475
$ 28,177
640,610
-
1,487,337
_
631615
_ (8,929)
28 830 807
19 248
33
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued).
Year Ended September 30, 1998
NOTE 9 - RESERVES OF FUND BALANCES/RETAINED EARNINGS AND UNRESERVED
DESIGNATIONS
A. Governmental Fund Types
Reserves of fund balances of Governmental Fund Types represent portions of fund balances
which are not available to be appropriated for expenditures or which have been segregated for
specific future uses. The reserved fund balances in Governmental Fund Types at September 30,
1998 are as follows:
General Fund:
Reserve for police training $ 9,419
Reserve for law enforcement 530
Reserve for encumbrances 145,324
Special Revenue Fund: 155,273
f
Reserve for encumbrances 720,696
Trust and Agency Funds:
Reserve for employee pension benefits 38,249,952
Reserve for streetscape improvements 114,953
38.364,905
Total 39,240,874
Designated fund balances represent tentative plans for future use of financial resources. The
designated fund balances that are included in unreserved fund balances in the Governmental
Fund Types at September 30, 1998, are as follows:
General Fund:
Designated for carryforward appropriations 3 643 548
Special Revenue Fund:
Designated for carryforward appropriations 1.202 718
B. Proprietary Fund Types
Retained earnings have been reserved in the Utilities Enterprise Fund to comply with covenants
and bond resolutions of the various revenue bond issues or by administrative action.
At September 30, 1998, such reserves are as follows
Renewal and replacement $ 500,000
Revenue reserves 2,166,138
State grant project replacement 180,297
Total $ 2,84fi 435
i —
I�
34
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
C. Residual Equity Transfer
During the year, the enterprise fund made a one-time transfer of $24,817, which represented a
transfer of fixed asset purchased by the enterprise fund and transferred to the general fixed asset
account group.
NOTE 10 - RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. The City purchases
commercial insurance for all types of claims with nominal deductible amounts except for self-
insurance risks discussed below. Settled claims did not exceed commercial coverage limitations
for each of the past three fiscal years.
For the period prior to October 1, 1996, the City established a self-insurance program for workers'
compensation effective October 1, 1987 and for general and automobile liability effective October
1, 1989. The amount of risk retained by the City is limited through the purchase of excess
insurance of $2 million with a deductible per occurrence as follows:
Workers' compensation $ 350,000
General and auto liability 200,000
Public official liability 25,000
Liability awards in excess of $100,000 per person, $200,000 per occurrence against municipalities
in the State of Florida must be approved by the Florida Legislature pursuant to Florida Statute
768.28.
For periods subsequent to October 1, 1996, the City changed to a fully insured workers
compensation program and reduced self -insured deductible per occurrence to the following:
General and auto liability $ 25,000
Public official liability 25,000
Liabilities are recorded when it is probable that a loss has occurred and the amount of loss can be
reasonably estimated. Liabilities include an amount for claims that have been incurred but not
reported. Because actual claims liabilities depend on such complex factors as inflation, changes in
legal doctrines and damage awards, the process used in computing claims liability does not
necessarily result in an exact amount. Claims liabilities are reevaluated periodically to take into
consideration recently settled claims, the frequency of claims, and other economic and societal
factors. Interfund premiums are based primarily upon the insured funds' claims experience and
are reported as quasi -external interfund transactions. The liability reported in the accompanying
combined balance sheet of approximately $2,241,000 represents the discounted present value of
projected claims of approximately $2,519,000 using a discount rate of 5% and certain cash flow
assumptions.
35
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
NOTE 10 - RISK MANAGEMENT (Continued)
Changes in the fund's claims liability during the past two fiscal years are as follows:
Year Ended
September 30
1997
1998
Current
Year
Beginning
Claims and
of Year
Changes in
Claim
Liability
Estimates
Payments
$ 3,307,000
$ 1,107,410
$ 1,500,410
2,914,000
(213,202)
459,798
NOTE 11 - COMMITMENTS AND CONTINGENCIES
A. Litigation
End of
Year
_ _Liability
$ 2,914,000
2,241,000
The City is a defendant in certain legal proceedings and claims arising in the ordinary course of
operations. Management has instructed legal counsel to vigorously defend these actions and
does not expect ultimate liability, if any, to materially effect the financial statements of the City.
B. Interlocal Agreement with Broward County Sheriffs Office
A contract exists between Broward County Sheriffs Office and the City, whereby Broward County
Sheriffs Office provides police officers to serve the City of Tamarac. These police officers are paid
on Broward County Sheriffs Office payroll. The City of Tamarac pays Broward County for the
police services based on the contract. The City recognized expenses of $6,708,024 under this
contract for the fiscal year ended September 30, 1998.
C. Interlocal Agreement with Broward County, Florida
In 1988, the City entered into an agreement with Broward County, Florida for the transmission,
treatment and disposal of wastewater. The charges for service provided by the County include
operating, maintenance and debt service charges for the facilities and the County Improvement,
Repair, and Replacement Fund Surcharge. The charges are adjusted annually based upon actual
costs incurred in the prior year.
For the fiscal year ended September 30, 1998, the City recognized expenses of $2,762,515 under
this agreement. The agreement will continue in existence and cannot be canceled on any
condition except by mutual cancellation agreement between the City and Broward County.
Management considers cancellation of this agreement as remote. In addition, future payments
under this agreement are not estimable.
D. Commitments Under Construction Contracts
At September 30, 1998, the City had outstanding commitments under construction contracts of
approximately $1,604,000.
City of Tamarac, Florida
NOTES TO THE FINANCIAL STATEMENTS, (Continued)
Year Ended September 30, 1998
NOTE 12 - POST RETIREMENT HEALTHCARE AND LIFE INSURANCE BENEFITS
The City provides certain healthcare and life insurance benefits for retired employeeg. All of the
City's employees may become eligible for those benefits if they reach normal retirement age while
working for the City. The cost of retiree healthcare and life insurance benefits is incurred by the
retirees. The City does not recognize any expense for these benefits.
NOTE 13 - CONDUIT DEBT OBLIGATIONS
The City has issued Industrial Revenue Bonds to provide financial assistance to three private -
sector entities for the acquisition and construction of warehouses and office facilities. The bonds
are secured by the property financed and are payable solely from payments received on the
underlying mortgage loans. Neither the City, the state, nor any political subdivision thereof is
obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as
liabilities in the accompanying financial statements.
At September 30, 1998, the above series of Industrial Revenue Bonds had outstanding principal
balances aggregating $11,400,000.
NOTE 14 - FUND DEFICITS
A deficit fund balance exists in the 1992 General Obligation Bond Debt Service Fund as of
September 30, 1998 in the amount of $442,728, The deficit will be cured by receipt of designated
tax assessments subsequent to year-end. In addition, a deficit fund balance exists in the Grants
Special Revenue Fund as of September 30, 1998 in the amount of $15,226. The deficit will be
cured by receipt of additional grant funds during the year.
NOTE 15 — SUBSEQUENT EVENT
Subsequent to year-end, the City issued $3.25 million of General Obligation Bonds, Series 1998.
The bonds were issued primarily to fund a portion of the costs of acquisition, construction, and
improvements of the City's proposed Senior and Community Center,
NOTE 16 — COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES — BUDGET AND ACTUAL
Included in the Statement for Special Revenue Funds are the Park and Recreation Improvements
Fund, Trafficways Improvements Fund, Fire/Rescue Fund, Grants Fund, and Stormwater
Management Fund with total actual revenues of $6,719,763, which have legally adopted budgets.
The Drainage Improvements Fund with actual revenues of $69,552 has been excluded since no
budget was legally adopted for this fund. Therefore, the totals on the Combining Statement of
Revenues, Expenditures and Changes in Fund Balances — All Special Revenue Funds will not
agree to the totals on the Combining Statement of Revenues, Expenditures and Changes in Fund
Balances — Budget to Actual -- All Special Revenue Funds.
37
j9 •'1
38
REQUIRED SUPPLEMENTARY INFORMATION
City of Tamarac, Florida
EMPLOYEES' PENSION FUND
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS
(Unaudited)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Unfunded
Actuarial
Actuarial
Actuarial
Actuarial
Value
Accrued
Accrued
UAAL As % of
Valuation
of Assets
Liability (AAL)
Liability
Funded Ratio
Covered
Covered
Date
(AVA)
- Entry Age
(UAAL)(3)-(2)
(2)/(3)
Payroll
Payroll (4)/(6)
10/1/97
$31,444,640
$34,267.359
$2,822,719
91.76%
$9,767,083
28.90%
10/1/96
27,084,993"
30,954.924°
3,869,931
87.50
9,804,700
39.47
10/1/95
21,751,213
25,968,187
4,216,974
83.76
9,317,097
45.26
a Increase in value of assets due to overall increase in the financial market
Change in assumption for firefighters salary scale
Men
City of Tamarac, Florida
YEAR 2000
REQUIRED SUPPLEMENTARY INFORMATION
DESCRIPTION OF THE YEAR 2000 ISSUE
(Unaudited)
The Year 2000 issue is the result of shortcomings in many electronic data processing systems
and other equipment that may adversely affect operations in the year 1999 and beyond. The
problem originated when programmers used two digit codes to designate years. Many programs,
if not corrected, will not be able to distinguish between the year 2000 and the year 1900. This
may cause the equipment to process data inaccurately or to stop processing altogether.
To address this problem, the City of Tamarac produced a year 2000 report in 1997. This report
addresses the City's approach to solving the Year 2000 problem. There are five phases to the
Year 2000 project:
Awareness — Disburse information to ensure that all concerned are informed about the
issues.
Assessment — Identify all systems having a potential to be affected by the year 2000, and
assess the actual status of each of these systems.
3. Remediation — Establish standards and begin the process of conversion or replacement
of year 2000 impaired systems.
4. Validation/Implementation — Validating and testing the changes made during the conver-
sation process.
The City of Tamarac has completed an inventory of computer systems and other electronic
equipment that may be affected by the Year 2000 issue and that are necessary to conduct City
operations. The validation/testing phase was completed for the financial reporting, payroll and
employee benefit systems. The program of replacing outdated personal computers is under way
and is expected to be completed by May 1999. During the fiscal year 1999, $230,000 was
budgeted for the year 2000 related hardware and software initiatives. The City telemetry systems
improvement project is due to be completed by May 2000 and $1.2 million has been budgeted for
this capital project.
Because of the unprecedented nature of the Year 2000 issue, its effects and the success of
related remediation efforts will not be fully determinable until the year 2000 and thereafter.
Management cannot assure that the City is or will be year 2000 ready, that the City's remediation
efforts will be successful in whole or in part, or that parties with whom the City does business will
be year 2000 ready.
40
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
GENERALFUND
The General Fund is used to account for resources traditionally
associated with government which are not required legally or by
sound financial management to be accounted for in another fund.
41
City of Tamarac, Florida
COMPARATIVE BALANCE SHEET
GENERALFUND
September 30, 1998
(with comparative totals for September 30, 1997)
ASSETS
Cash and equity in pooled cash and investments
Accounts receivable - net
Due from other funds
Advances to other funds
Due from other governments
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Escrow deposits
Deferred revenues
Total Liabilities
Fund balances:
Reserved for police training
Reserved for law enforcement
Reserved for encumbrances
Reserved for advance to Drainage Improvement Fund
Unreserved:
Designated for carryforward appropriations
Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
42
1998 1997
$ 6,639,132
$ 5,074,194
230,147
250,509
515,782
480,566
-
160,000
377,230
366,043
$ 7,762,291
$ 6,331,312
$ 289,020
$ 252,582
219,480
355,254
30,188
37,998
340,603
370,529
879,291
1,016,363
9,419
9,880
530
531
145,324
17,302
160,000
3,643,548
1,125,720
3,084,179
4,001,516
6,883,000
5,314,949
$ 7,762,291 $ 6,331,312
City of Tamarac, Florida
SCHEDULE OF REVENUES AND TRANSFERS IN - BUDGET AND ACTUAL
GENERALFUND
Year Ended September 30, 1998
(with comparative actual amounts for the year ended September 30, 1997)
TAXES
Property taxes
Franchise fees
Sales and use taxes
Total Taxes
CHARGES FOR SERVICES
General government
Physical environment
Recreation
Transportation
Total Charges for Services
INTERGOVERNMENTAL
Local shared revenues
State shared revenues
Total Intergovernmental
LICENSES AND PERMITS
Occupational licenses
Building permits
Total Licenses and Permits
FINES AND FORFEITURES
Court fines
Parking violations
Total Fines and Forfeitures
MISCELLANEOUS
Administrative fees
Interest
Rent and advertising fees
Otherfees
Other
Total Miscellaneous
Total Revenues
Other Financing Sources
Operating transfers in
Capital leases
Total Other Financing Sources
Total Revenues and
Other Financing Sources
1998
1997
Variance
Favorable
Budget
Actual
(Unfavorable)
Actual
$ 7,589,205
$ 7,679,424
$ 90,219
$ 7,369,939
2,905,000
3,169.364
264,364
3,225,676
1,000,000
961,641
(38,359)
906,233
11,494,205
11,810,429
316.224
11,501,848
109,171
155,960
46,789
-
559,500
636,385
76,885
729,890
266,330
360,743
94,413
240,602
6,000
2,300
(3,700)
-
941,001
1,155,388
214,387
970,492
61,000
105,140
44,140
61,484
3,966,000
3,967,006
1,006
3,682,027
4,027,000
4,072,146
45,146
3,743,511
525,000
506,632
(18,368)
468,032
960,000
1,264,338
304,338
902,464
1,485,000
1,770,970
285,970
1,370,496
320,000
378,001
58,001
355,915
50,000
51,064
1,064
47,292
370,000
429,065
59,065
403,207
2,822,340
2,867,877
45,537
2,426,845
385.000
553,837
168,837
446,307
27,500
170,861
143,361
84,602
-
-
-
68,598
55,000
105,559
50,559
186,416
3,289,840
3,698,134
408,294
3,212,768
21,607,046
22,936,132
1,329,086
21,202,322
160,000
-
(160,000)
-
101,458
101.457
(1)
-
261,458
101,457
(160,001)
$ 21,868,504 $ 23,037,589 $ 1,169,085 $ 21,202 322
43
City of Tamarac, Florida
SCHEDULE OF EXPENDITURES AND TRANSFERS OUT - BUDGET AND ACTUAL
GENERALFUND
Year Ended September 30, 1998
(with comparative actual amounts for the year ended September 30. 1997)
1998 1997
Variance
Favorable
Budget
Actual
(Unfavorable)
Actual
GENERAL GOVERNMENT
Commission
$ 168,551
$ 147,705
$ 20,846
$ 113,592
City manager
598,822
448,475
150,347
322,080
City clerk
499,138
359,850
139,288
425,570
Personnel
480,432
469,014
11,418
330,889
Finance
1,424,177
1,361,323
62,854
1,085,612
City attorney
460,810
339,898
120,912
376,867
Custodial / building maintenance
825,902
676,391
149,511
725,351
Boards and committees
51,740
29,557
22,183
20,308
Public works administration
895,823
569,715
326,108
299,250
Non -departmental -capital improvement
-
-
-
87,928
Non -departmental -operating
3,580,424
2,224,555
1,355,869
2,463,631
Total General Government
8,985,819
6,626,483
2,359,336
6,251,078
PUBLIC SAFETY
Police
6,871,010
6,802,642
68,368
6,597,442
Fire / rescue
-
-
-
384,724
Building
970,068
816,058
154,010
777,934
Code enforcement
307,575
252,543
55,032
238,408
Total Public Safety
8,148,653
7.871,243
277,410
7,998,508
TRANSPORTATION
Streets and roads
1,366,114
1,271,200
94,914
1,002,100
CULTURE ! RECREATION
Recreation activities
1,013,456
1,008,847
4,609
811,995
Park facilities
827,843
745,507
82,336
481,108
Total Culture / Recreation
1,841,299
1.754,354
86.945
1,293,103
PHYSICAL ENVIRONMENT
Engineering
288.708
212,401
76,307
147,714
Landscape and irrigation
432.000
408,956
23,044
358,409
Planning
648,847
579,481
69,366
441,412
Recycling services
406,875
234,169
172,706
228,963
Total Physical Environment
1,776,430
1,435,007
341,423
1,176,498
ECONOMIC ENVIRONMENT
Economic development office
43,800
48,622
(4,822)
12,384
HUMAN SERVICES
Social services
249,945
222,323
27,622
154,204
DEBT SERVICE
Principal retirement
-
22,214
(22,214)
-
Interest and fiscal charges
-
Total Debt Service
-
22,214
(22,214)
-
Total Expenditures
22,412,060
19,251.446
3,160,614
17,887,875
Transfers out
2,348,687
2,218,092
130,595
3,174,352
Total Expenditures and Transfers Out
$ 24,760,747
$ 21,469,538
$ 3,291,209
$ 21,062 227
44
M;1=WT-11111 V AV/=:111;WL`lead
Special Revenue Funds account for revenues from specific taxes
or other earmarked revenue sources, which, by law are
designated to finance particular functions or activities of
government. The City has the following Special Revenue Funds:
Drainage Improvement Fund - to account for the collection of
drainage impact fees to be used for upgrading drainage and
drainage retention.
Parks and Recreation Fund - to account for the collection of parks
and recreation impact fees to be used for the acquisition and
development of park and recreation facilities and sites.
Trafficways Improvement Fund - to account for the collection of
impact fees to be used for construction or improvement of roads,
streets, and highways and bridges.
Fire/Rescue Fund - to account for the collection of Special EMS
assessments for costs involved in providing fire and rescue
services.
Grant Fund - to account for the proceeds and expenditure of grant
funds.
Stormwater Management Fund - to account for the revenues
received and expended for the purpose of reducing excessive
water runoff during severe storms.
45
City of Tamarac, Florida
COMBINING BALANCE SHEET
ALL SPECIAL REVENUE FUNDS
September 30, 1998
ASSETS
Equity in pooled cash and investments
Accounts receivable - net
Due from other funds
Due from other governments
Inventories
Restricted assets:
Cash and equity in pooled cash
and investments
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Payable from restricted assets:
Customer deposits
Escrow deposits
Deferred revenues
Total Liabilities
Fund balances:
Reserved for encumbrances
Unreserved:
Designated for carryforward appropriations
Undesignated
Total Fund Balances
Total Liabilities and Fund Balances
Parks and
Drainage Recreation Trafficways
Improvements Improvements Improvements
$ 177,490 $ 431,998 $ 8,480
622,634
$ 177,490 $ 431,998 $ 631,114
$ _ $ 11,782 $
332,540
- 11,782
332,540
- -
298,574
- 39,763
-
177.490 380,453
-
177,490 420.216
298,574
$ 177,490 $ 431,998 $
631,114
46
Stormwater
Fire/Rescue
Grants
Management
Total
$ 1,106,204
$ 2,591
$ 2,523,359
$ 4,250,122
209,732
-
51,140
260,872
134,020
-
693
134,713
387
45,720
-
668,741
-
-
34,301
34,301
-
-
19,717
19,717
$ 1,450,343
$ 48,311
$ 2,629,210
$ 5,368,466
$ 88,511 $ 23,302 $ 21,939 $ 478,074
176,616 - 11,985 188,601
- 34,422 - 34,422
- 19,717 19,717
605 - - 605
- 5,813 - 5,813
265,732 63,537 53,641 727,232
399,191 - 22,931 720,696
566,897 - 596,058 1,202,718
218,523 (15.226) 1,956,580 2,717,620
1,184,611 (15,226) 2,575.569 4,641,234
$ 1,450,343 $ 48,311 $ 2,629,210 $ 5,368,466
47
City of Tamarac, Florida
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
ALL SPECIAL REVENUE FUNDS
Year Ended September 30, 1998
Parks and
Drainage Recreation
Improvements Improvements
REVENUES
Taxes
$ -
$ -
Fire protection services
-
-
Emergency service fees
-
-
Stormwater drainage fees
-
-
Intergovernmental
-
-
Miscellaneous - impact fees and investment income
69,552
124,198
Total Revenues
69,552
124,198
EXPENDITURES
Current.
Public safety
-
-
Transportation
-
-
Culture / recreation
-
13,592
Physical environment
-
-
Total Expenditures
-
13,592
Excess of Revenues Over (Under) Expenditures
69,552
110,606
OTHER FINANCING SOURCES (USES)
Capital leases
-
-
Operating transfers in
-
-
Total Other Financing Sources (Uses)
-
-
Excess of Revenues and Other
Financing Sources (Uses) Over
(Under) Expenditures
69,552
110,606
Fund Balances at Beginning of Year
107,938
309,610
Fund Balances at End of Year
$ 177,490
$ 420,216
48
Trafficways
Stormwater
Improvements
Fire / Rescue
Grants
Management
Total
$ -
$ 2,598,735
$ -
$ -
$ 2,598,735
-
64,616
-
-
64,616
-
1,046,349
-
-
1,046,349
-
-
-
1,875,271
1,875,271
622,634
15,493
59,660
-
697,787
81,097
101,492
107
130,111
506,557
703,731
3,826,685
59,767
2,005,382
6,789,315
-
5,954,752
46,801
-
6,001,553
1,006,652
-
20,189
-
1,026,841
-
-
-
-
13,592
-
-
17,162
1,232,901
1,250,063
1,006,652
5,954,752
84,152
1,232,901
8,292,049
(302,921)
(2,128,067)
(24,385)
772,481
(1,502,734)
-
517,972
-
22,546
540,518
-
2,152,442
9,000
56,650
2,218,092
-
2.670,414
9,000
79,196
2,758,610
(302,921)
542,347
(15,385)
851,677
1,255,876
601,495
642,264
159
1,723,892
3,385,358
$ 298,574
$ 1,184,611
$ (15,226)
$ 2,575,569
$ 4,641,234
49
City of Tamarac, Florida
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ALL SPECIAL REVENUE FUNDS
Year Ended September 30, 1998
Parks and Recreation Improvements
Variance
Favorable
Budget
Actual
(Unfavorable)
REVENUES
Special assessments
$ _
$
Fire protection services
Emergency service fees
Stormwater drainage fees
Intergovernmenta►
Miscellaneous - impact fees and investment income
-
124,198
124,198
Total Revenues
-
124,198
124,198
EXPENDITURES
Current:
Public safety
_
_
_
Transportation
_
_
Culture / recreation
24,825
13,592
11,233
Physical environment
_
-
Total Expenditures
24,825
13,592
11,233
Excess of Revenues Over
(Under) Expenditures
(24,825)
110,606
135,431
OTHER FINANCING SOURCES (USES)
Capital leases
_
-
Operating transfers in
Total Other Financing Sources (Uses)
_
_
_
Excess of Revenues and Other
Financing Sources (Uses) Over
(Under) Expenditures
$ 24,825
110,606
$ 135,431
Fund Balances at Beginning of Year
309,610
' Fund Balances at End of Year
$ 420,216
50
City of Tamarac, Florida
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ALL SPECIAL REVENUE FUNDS
Year Ended September 30, 1998
REVENUES
Special assessments
Fire protection services
Emergency service fees
Stormwater drainage fees
Intergovernmental
Miscellaneous - impact fees and investment income
Total Revenues
EXPENDITURES
Current:
Public safety
Transportation
Culture 1 recreation
Physical environment
Total Expenditures
Excess of Revenues Over
(Under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital leases
Operating transfers in
Total Other Financing Sources (Uses)
Excess of Revenues and Other
Financing Sources (Uses) Over
(Under) Expenditures
Fund Balances at Beginning of Year
as Restated
Fund Balances at End of Year
Trafficways Improvements
Variance
Favorable
Budget Actual (Unfavorable)
622.634 622.634
- 703,731
703,731
2,403,240 1,006,652
1,396,588
2,403,240 1,006,652
1,396,588
(2,403,240) (302,921)
2,100,319
$ IL,403,24A0 (302,921) $ 2,100,319
a cVa,Dfw
(CONTINUED)
51
City of Tamarac, Florida
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ALL SPECIAL REVENUE FUNDS
Year Ended September 30, 1998
REVENUES
Special assessments
Fire protection services
Emergency service fees
Stormwater drainage fees
Intergovernmental
Miscellaneous - impact fees and investment income
Total Revenues
EXPENDITURES
Current:
Public Safety
Transportation
Culture / recreation
Physical environment
Total Expenditures
Excess of Revenues Over
(Under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital leases
Operating transfers in
Total Other Financing Sources (Uses)
Excess of Revenues and Other
Financing Sources (Uses) Over
(Under) Expenditures
Fund Balances at Beginning of Year
Fund Balances at End of Year
52
Fire / Rescue
Variance
Favorable
Budget Actual (Unfavorable)
$ 2,880,274
$2,598,735
$ (281,539)
81,000
64,616
(16,384)
750,000
1,046,349
296,349
13,280
15,493
2,213
143,042
101,492
(41,550)
3,867,596
3,826,685
(40,911)
7,126,777 5,954,752 1,172,025
7,126,777 5,954,752 1,172,025
(3,259,181) (2,128,067) 1,131,114
398,540 517,972 119,432
2,152,445 2,152,442 (3)
2,550.985 2,670,414 119,429
$ (708,196) 542,347 $ 1,250,543
$1,184,611
City of Tamarac, Florida
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ALL SPECIAL REVENUE FUNDS
Year Ended September 30, 1998
REVENUES
Special assessments
Fire protection services
Emergency service fees
Stormwater drainage fees
Intergovernmental
Miscellaneous - impact fees and investment income
Total Revenues
EXPENDITURES
Current:
Public safety
Transportation
Culture / recreation
Physical environment
Total Expenditures
Excess of Revenues Over
(Under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital leases
Operating transfers in
Total Other Financing Sources (Uses)
Excess of Revenues and Other
Financing Sources (Uses) Over
(Under) Expenditures
Fund Balances at Beginning of Year
Fund Balances at End of Year
53
Budget
578,919
Grants
Variance
Favorable
Actual (Unfavorable)
59.660 (519,259)
578,919
59,767
(519,152)
55,939
46,801
9,138
-
20,189
(20,189)
171,300
-
171,300
510,400
17,162
493,238
737,639
84,152
653,487
(158,720) (24,385) 134,335
158.720 9,000 (149,720)
158.720 9,000 (149,720)
$ - (15,385) $ (15,385)
p (1a,ccw)
(CONTINUED)
City of Tamarac, Florida
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ALL SPECIAL REVENUE FUNDS
Year Ended September 30, 1998
Stormwater Management
Variance
Favorable
Budget
Actual
(Unfavorable)
REVENUES
Special assessments
$
$ _
$
Fire protection services
Emergency service fees
_
Stormwater drainage fees
1,743,350
1,875,271
131,921
Intergovernmental
Miscellaneous - impact fees and investment income
43,500
130,111
86,611
Total Revenues
1,786,850
2,005,382
218,532
EXPENDITURES
Current:
Public safety
Transportation
Culture / recreation
_
Physical environment
2,152,722
1,232,901
919,821
Total Expenditures
2,152,722
1,232,901
919,821
Excess of Revenues Over
(Under) Expenditures
(365,872)
772,481
1,138,353
OTHER FINANCING SOURCES (USES)
Captial leases
22,546
22,546
Operating transfers in
56,650
56,650
-
Total Other Financing Sources (Uses)
79,196
79,196
-
Excess of Revenues and Other
Financing Sources (Uses) Over
(Under) Expenditures
$ (286,676)
851,677
$1,138,353
Fund Balances at Beginning of Year
1,723,892
Fund Balances at End of Year
$ 2,575,569
54
City of Tamarac, Florida
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ALL SPECIAL REVENUE FUNDS
Year Ended September 30, 1998
REVENUES
Special assessments
Fire protection services
Emergency service fees
Stormwater drainage fees
Intergovernmental
Miscellaneous - impact fees and investment income
Total Revenues
EXPENDITURES
Current:
Public safety
Transportation
Culture / recreation
Physical environment
Total Expenditures
Excess of Revenues Over
(Under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital leases
Operating transfers in
Total Other Financing Sources (Uses)
Excess of Revenues and Other
Financing Sources (Uses) Over
(Under) Expenditures
Fund Balances at Beginning of Year
Fund Balances at End of Year
55
Total
Variance
Favorable
o........ ._• — I ....
$ 2,880,274
$2,598,735
$ (281,539)
81,000
64,616
(16,384)
750,000
1,046,349
296,349
1, 743, 350
1,875,271
131,921
592,199
697,787
105,588
186,542
C hnn nrr
437,005
n �. n �....
250,463
... .. .... ..
7,182,716
6,001,553
1,181,163
2,403,240
1,026,841
1,376,399
196,125
13,592
182,533
2,663,122
1,250,063
1,413,059
i'i A A C nr%O
n nnn n-n
(6,211,838)
421,086
/A ��n nnn • nnn ���
540,518
2,788,901 2,758,610
119,432
(149,723)
$(3,422,937) 1,186,324 $4,609,261
3,277,420
$ 4,463,744
6*
INTERNAL SERVICE FUNDS
Internal Service Funds account for the financing of services
provided by one department to other departments of the City on a
cost -reimbursement basis. The City has the following Internal
Service Funds:
Management Information Services Fund — to account for the cost
of providing data processing services to other departments. The
fund is financed on a service charge basis in relationship to the
department's use of the system.
Fleet Services Fund — to account for the costs of operating a
maintenance facility for the City's vehicles. User departments are
billed for the estimated operating costs.
Insurance Services Fund — to account for the cost of insuring the
City in areas of General and Auto Liability and Workers'
Compensation. Other funds are billed to cover actual cost of
premiums and claims and to maintain an adequate balance in
fund equity.
Gv]
City of Tamarac, Florida
COMBINING BALANCE SHEET
ALL INTERNAL SERVICE FUNDS
September 30, 1998
Management
Information
Fleet
Insurance
ASSETS
Services Services
Services
Total
Current Assets:
Cash and equity in pooled cash and investments $ 734,437 $
461.574
$ 3,367.146
$ 4.563,157
Accounts receivable
125,000
125,000
Due from other funds
549
487
83
1,119
Total Current Assets
h
734,986
462,061
3,492.229
4,689.276
Property, Plant and Equipment:
Equipment
893,256
1,024,001
27,992
1,945,249
Less: Accumulated depreciation
(447,031)
(507,101)
(19,072)
(973,204)
Total Property, Plant and Equipment
446,225
516,900
8.920
972,045
Total Assets
$ 1,181,211 $
978,961
$ 3,501,149
,$ 5,661,321
LIABILITIES AND FUND EQUITY
Current Liabilities:
Accounts payable
$ 62,953 $
7.614
$ 4,254
$ 74,821
Accrued liabilities
39,488
31,497
20.425
91,410
Current portion of capital lease obligation
161,350
-
-
161,350
Claims payable
-
-
2,241,000
2,241,000
Total Current Liabilities
p
263,791
39,111
2,265,679
2.568,581
Long Term Debt - Capital Lease Obligation
I
346,936
-
-
346,936
Total Liabilities
610,727
39.111
2.265,679
2.915,517
Fund Equity (Deficit):
Contributed capital
19,248
-
19,248
Retained earnings (deficit):
Unreserved
551,236
939,850
1,235A70
2,726.556
Total Fund Equity
570,484
939,850
1,235,470
2,745,804
Total Liabilities and Fund Equity
!
$ 1,181,211 $
=rniw
978,961
re�
$ 3,501,149
�rir
$ 5,661,321
r.
58
City of Tamarac, Florida
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS AND FUND EQUITY
ALL INTERNAL SERVICE FUNDS
Year Ended September 30, 1998
Management
Information Fleet Insurance
Services Services Services Total
OPERATING REVENUES
Charges for services
Other
Total Operating Revenues
OPERATING EXPENSES
BEFORE DEPRECIATION
Administrative costs
Claims expense
Total Operating Expenses
Before Depreciation
Operating Income Before Depreciation
DEPRECIATION
Operating Income
NONOPERATING REVENUES
Investment income
Interest expense
Gain (Loss) on disposal of fixed assets
Total Nonoperating Revenues
NET INCOME
Add depreciation on contributed assets
Increase in Retained Earnings
Retained Earnings at Beginning of Year
Retained Earnings at End of Year
Contributed Capital at Beginning of the Year
Depreciation on contributed assets
Contributed Capital at End of Year
Total Fund Equity at End of Year
0.71,00a I'D U14,L I I J L,VO V,Y'iV y J,V IL,:JJV
1,192 5,941 19,614 26,747
OOV, lac L, IVV, VVY
aa'1 Cia '100 70A Q00 OG7 1 OnR 107
399,724 1,282,750
683,516
175,561
280.428
21,140 121,120
O 1l,JV4 I,Ll J,L�J
814.689 956.949
46,783
25,190
178,566
250,539
(32,613)
-
-
(32,613)
(6,798)
(331)
(7,129)
T372
24,859
178,566
210,797
28,512
145,979
993,255
1,167,746
8,929
-
-
8,929
37,441
145,979
993,255
1,176,675
513,795
793,871
242,215
1,549,881
551,236
939,850
1,235,470
2,726,556
28,177
-
-
28,177
(8,929)
(8,929)
19,248
-
19,248
$ 570,484
$ 939,850
$ 1,235,470
$ 2,745,804
*1
City of Tamarac, Florida
COMBINING STATEMENT OF CASH FLOWS
ALL INTERNAL SERVICE FUNDS
Year Ended September, 30 1998
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating income
Adjustments to Reconcile Operating Income to
Net Cash Provided by Operating Activities:
Depreciation
Changes in Assets and Liabilities:
Increase in accounts receivable
Decrease in prepaid insurance
Increase in due from other funds
Increase (Decrease) In -
Accounts payable
Accrued liabilities
Claims payable
Net Cash Provided by Operating Activities
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of fixed assets
Net proceeds from issuance of long-term debt:
Notes payable principal payments
Notes payable interest payments
Net Cash Provided (Used) by Capital
and Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income
Net Cash Provided by Investment Activities
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS
AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS AT END OF YEAR
SUPPLEMENTAL DISCLOSURE OF NON -CASH
INVESTING, CAPITAL AND FINANCING ACTIVITIES:
Loss on disposal of fixed assets
Depreciation on contributed capital
Management
Information Fleet
Services Services
Insurance
Services Total
$ 21,140
$ 121.120
$ 814,689
$ 956.949
154,421
159,308
2,615
316,344
-
-
(125,000)
(125,000)
-
-
10,258
10,258
(549)
(487)
(83)
(1,119)
(47,311)
(4,960)
1,323
(50,948)
(1,356)
91
5,608
4,343
-
(673,000)
(673.000)
126,345
275,072
36,410
437,827
(27,231)
(139,253)
(1,960)
(168,444)
(153,775)
(153,775)
(32,613)
(32,613)
(213,619)
(139,253)
(1,960)
(354,832)
46,783
25,190
178,566
250,539
46,783
25,190
178,566
250,539
(40.491)
161,009
213,016
333,534
774,928
300,565
3,154,130
4,229,623
$ 734,437
$ 461,574
$3,367,146
$44563,157
$ 6,798 $ 331
8,929 -
60
$ $ 7,129
8,929
1111:1114 WilLl I97-M=121IWAM-11P.I9�-1
Trust and Agency Funds account for assets held by the City in a
trustee capacity or as an agent for individuals, private
organizations, other governments and/or funds. The City has three
Pension Trust Funds, one Expendable Trust Fund, and one
Agency Fund.
Pension Trust Funds
General Employees, Police Officers and Firefighters Pension
Trust Funds — all three funds are used to account for the
accumulation of resources to be used for retirement benefit
payments to the City's employees. Resources are contributed by
employees at rates fixed by law and by the City at amounts
determined by an annual actuarial valuation.
Expendable Trust Fund
Streetscape Improvement Fund — to account for impact fee
charges to be used to beautify the City's streetscape.
Agency Funds
General Agency Fund — to account for refundable deposits,
unclaimed items and uncashed checks.
1-T
City of Tamarac, Florida
COMBINING BALANCE SHEET
ALL TRUST AND AGENCY FUNDS
September 30, 1998
ASSETS
Equity in pooled cash and investments
Investments
Receivables -net
Total Assets
LIABILITIES AND FUND BALANCES
Accounts payable
Escrow deposits
Due to other funds
Total Liabilities
Fund balances:
Reserved for employee pension benefits
Reserved for streetscape improvements
Total Liabilities and Fund Balances
Pension Trust Funds
Veneral Police
Employees Officers
Firefighters
Retirement
$ 91,084 $ 28,921 $ 195,644
15,801,299 9,750,793 12,377,727
92,386 58,612 64,406
$ 15,984,769 $ 9,838,326 $ 12,637,777
24,961
17,286
42,247
15, 942, 522
15,697 19,099
133,877
15,697 152,976
9,822,629 12,484,801
$ 15,984,769 $ 9,838,326 $ 12,637,777
62
i
! Expendable
Trust Fund Agency
I
Streetscape General
Improvement Agency Total
$ 114,953
$ 953,744
$ 1,384,346
-
-
37,929,819
-
-
215,404
$ 114,953
$ 953,744
$ 39,529,569
-
150
59,907
-
953,594
953,594
-
-
151,163
-
953,744
1,164,664
-
-
38,249,952
114,953
-
114,953
$ 114,953
$ 953,744
$ 39,529,569
63
City of Tamarac, Florida
COMBINING STATEMENT OF CHANGES IN
NET ASSETS AVAILABLE FOR BENEFITS
ALL PENSION TRUST FUNDS
Year Ended September 30, 1998
General
Police
Employees
Officers
Firefighters
Retirement
Retirement
Retirement
Total
OPERATING REVENUES
Intergovernmental revenue
$ -
$ 221,635
$ 225,862
$ 447,497
Investment income
913,596
552,144
654,766
2,120,506
Contributions
659,833
218,265
721,776
1,599,874
Total Operating Revenues
1,573,429
992,044
1,602,404
4,167,877
OPERATING EXPENSES
Administrative costs
43,903
28,721
30,085
102,709
Benefits paid
743,892
563,545
161,670
1,469,107
Total Operating Expenses
787,795
592,266
191,755
1,571,816
INCREASE IN NET ASSETS
AVAILABLE FOR BENEFITS
785,634
399,778
1,410,649
2,596,061
Net assets available for benefits
Beginning of Year
15,156,888
9,422.851
11,074,152
35,653,891
Net assets available for benefits
End of Year
$ 15,942,522
$ 9,822,629
$ 12,484,801
$ 38,249,952
64
City of Tamarac, Florida
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCYFUND
Year Ended September 30, 1998
GENERAL AGENCY FUND
Assets
Equity in pooled cash and
investments
Total Assets
Liabilities
Accounts payable
Escrow deposits
Total Liabilities
Balance
October 1,
Additions Deletions
Balance
September, 30
$
1,082,561
$
207,732
$
336,549
$
953,744
$
1,082,561
$
207,732
$
336,549
$
953,744
$ - $ 150 $ - $ 150
1,082,561 207,582 336,549 953,594
$ 1,082,661 $ 207,732 $ 336,549 $ 953,744
M01
Me
GENERAL. FIXED ASSETS ACCOUNT GROUP
To account for the fixed assets used in operations of
governmental funds, excluding the fixed assets of Enterprise and
Internal Service Funds.
Me
City of Tamarac, Florida
SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE
September 30, 1998
General Fixed Assets:
Land
Buildings and improvements
Equipment
Construction in progress
Total General Fixed Assets
Investment in General Fixed Assets By Source:
General Fund
Special Revenue Funds
Capital Projects Fund
Federal Grants
State Grants
Donations
Total Investment In General Fixed Assets
$ 2,447,187
13,560,151
4,471,074
152,433
$ 20,630,845
3,156,671
3,353,234
12,497,012
69,717
252,915
1,301,296
$ 20,630,845
City of Tamarac, Florida
SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
September 30, 1998
Buildings and
FUNCTION AND ACTIVITY
Total
Land
Improvements
Equipment
Legislative and judicial:
Legislative
$ 55,532
$
$
$ 55,532
City attorney
22,634
22,634
78,166
78,166
Operational services:
Community development
215,393
11,811
203,582
Fire protection
2,660,386
156,079
585,053
1,919,254
Public works
1,392,230
135,358
115,030
1,141,842
City engineer
81,707
-
-
81,707
Parks and recreation
3,735,397
1,136,900
2,013,391
585,106
Police services
66,346
-
8,929
57,417
8,151,459
1,428,337
2,734,214
3,988,908
Administrative services. -
General and administrative
11,992,540
1,018,850
10,825,937
147,753
Personnel
34,321
-
-
34,321
City manager
38,236
-
38,236
City clerk
98,623
-
-
98,623
Finance
85,067
-
85,067
12,248,787
1,018,850
10,825,937
404,000
20,478,412
$ 2,447,187
$ 13,560,151
$ 4,471,074
Construction in progress
152,433
$ 20,630,845
City of Tamarac, Florida
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
Year Ended September 30, 1998
General
Fixed
General
Assets
Fixed
October 1,
Assets
FUNCTION AND ACTIVITY
1997
Additions
Deletions
September
Transfers
".�
30, 1998
Legislative and judicial:
Legislative
City attorney
$ 59,632
$ _
$ (4,100)
$ -
$ 55,532
20,336
2,298
-
-
22,634
79,968_
2,298
(4,100)
-
78,166
Operational services:
Community development
170,760
64,180
(19,547)
Fire protection
Public works
2,655,897
294,443
(288,675)
(1.279)
215,393
2,660,386
City engineer
961,735
26,684
452,734
(22,239)
-
1,392,230
Parks and recreation
3,596,617
56,796
225,334
(1,773)
(86,554)
8,7
Police services
58,662
7,684
-
3,735,39397
66,346
7,470,355
1,101,171
(4 8)
7)
8,151,459
Administrative services:
General and administrative
11,990,755
12,415
(10,630 )
Personnel and insurance
33,550
1,
-
11,992,540
City manager
33,201
035
5,035
($1
-
34,321
City clerk
Finance
84,973
22,874
-
(10,503)
-
1,279
38,236
98,623
90,252
1.941
(7,126)
-
85,067
12,232,731
43,849
(29 072)
1.279
12,248,787
Construction in progress
1,554
152,433
(1,554)
_
152,433
�608
-$ 1,299,751
$ 44)
$20,630,845
70
Temp Reno 08249
May 21, 1999
Revised May 21. 1999
CITY OF TAMARAC, FLORIDA
RESOLUTION NO.99-156
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
TAMARAC, FLORIDA. ENTITLED: "A RESOLUTION AUTHORIZING
THE ISSUANCE OF NOT EXCEEDING 515,000,000 REVENUE BONDS OF
THE CITY OF TAMARAC, FLORIDA, TO FINANCE THE REPAIR AND
RESURFACING OF PUBLIC ROADWAYS, MEDIAN BEAUTIFICATION
A.YD OTHER IMPROVEMENTS TO SUCH ROADWAYS WITHIN THE
CITY; PROVIDING FOR THE ISSUANCE OF SAID REVENUE BONDS,
AND THE RIGHTS, SECURITY AND REMEDIES OF THE HOLDERS
THEREOF; PROVIDING FOR CONFLICTS; PROVIDING FOR
SEVERABILFFY; AND PROVIDING AN EFFECTIVE DATE HEREOF."
WHEREAS, the City Commission of the City of Tamarac (the "City") is a Municipality
within the scope of Florida Chapter 166 (the "Act"), and authorized to adopt this Resolution pursuant
to the Act, and other applicable provisions of law; and
WHEREAS, the Act authorizes the City to issue revenue bonds for the Project (as defined
herein); and
WHEREAS, the City deems it to be in the best financial and economic interests of the City
and the public to fund said Project as set forth in this Resolution; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF TAMARAC, FLORIDA, AS FOLLOWS:
oa siw j
Temp Reso r18249
Slav 21.1999
Revised Nis, 21, 1998
applicable rules and regulations promulgated under the Internal Revenue Code of 1954. as amended,
by the Treasury Department or Internal Revenue Service of the United Suites.
"Fiscal Year" shall mean that period commencing on October I and continuing to and
including the next succeeding September 30, or such other annual period as may be prescribed by
law,
"interest Payment Date" shall mean, for each Series of Bonds, such dates of each Fiscal
Year on which interest on such Series of Bands is payable, as set forth in the proceedings of the City
providing for the issuance of such Series o£ Bonds.
"Maximum Annual Debt Service" shall mean, at any time, the greatest Annual Debt
Service Requirement in the then current or any succeeding Fiscal Year.
"Moody's" shall mean Moody's Investors Service, a corporation organized and existing
under the laws of the State of Delaware, its successors and assigns, and if such corporation shall be
dissolved or liquidated or shall no longer perform the functions of a securities rating agency,
"Moody's" shall be deemed to refer to any other nationally recognised securities rating agency
designated by the City and approved by each Municipal Bond insurer.
"Municipal Bond Insurance Policy" shall mean an insurance policy issued for the benefit
of the Holders of any Bonds, pursuant to which the issuer of such insurance policy shall be obligated
to pay when due the principal of and interest on such Bonds to the extent of any deficiency in the
amounts in the funds and accounts held under this Resolution, in the manner and in acmrdance with
the terms provided in such Municipal Bond Insurance Policy.
"Municipal Bond Insurer" shall mean the provider of n Municipal Bond lnsuraue Policy.
"Outstanding" when used with reference to the Bonds, shall mean- as of anv date of
determination, all Bonds theretofore authenticated and delivered except:
(1) Bonds theretofore canceled by the Registrar or delivered to the Registrar for
cancellation;
(2) Bonds which are deemed paid and no longer Outstanding as provided herein;
(3) Bonds in lieu of which other Bonds have been issued pursuant to the provisions
hereof minting to Bonds destroyed, stolen or lost, unless evidence satisfactoy to the
Registrar has been received that any such Bond is held by a bona fide purchaser, and
Tcmp Rcso 08249
Mav 21, 1998
Revised May 21, 1998
ARTICLE
DEFINITIONS, AUTHORITY AND FINDINGS;
RESOLUTION CONSTITUTES A CONTRACT
SECTION LI DFFIMTIONS, As used in this Resolution, the following terms shall
have the meanings w provided:
"Act" shall mean Chapter 166, Florida Statutes. as amended and supplemented, and other
applicable provisions of law.
"Additional Parity Bonds" shall have the meaning given in Section 3.4(F)(iv) hereof
"Additional Pledged Revenues" shall mean any revenues, other than those revenues
pledged pursuant to this Resolution, that may hereafter be pledged by the City for the payment of
Bonds by subsequent proceedings of the City, provided, however, that the Ciry shall have received
an opinion of Bond Counsel or the City Attorney to the effect that such source of revenue is legally
available to be pledged as security for the Bonds and the City has full authority to pledge said
revenues.
"Annual Debt Service Requirement" shall mean the amount required to be deposited
during any Fiscal Year into the Interest Account, the Principal Account and the Bond Redemption
Account as provided in this Resolution.
"Bond Counsel" shall mean a nationally recognised firm of attomeysat-law selected by the
City and experienced in the financing of capital projects for governmental units through the issuance
of tax-exempt revenue bonds under the exemption provided under Section 103(a) of the Code.
"Bonds" shall mean the up to 515 million of Revenue Bonds, Series 1998 ("Series 1998
Revenue Bonds") authorized to be issued pursuant to this Resolution, together with any Additional
Parity Bonds hereafter issued pursuant to this Resolution.
"Bondholder," "Holder,' "Holder of Bonds" or "Owner" or any similar term, shall
mean any person who shall be the registered owner of any Outstanding Bond or Bonds.
"City" shall mean the City of Tamarac, Florida.
"Code" shall mean the Internal Revenue Code of 1986, as amended Each reference to a
section of the Code herein shall be deemed to include, if applicable, temporary or proposed
regulations, revenue rulings and proclamations issued or amended with respect thereto, and any
caosrnci
Temp Raw #8249
May 21, 1998
Revised May 21, 1999
(4) Bonds to which a Municipal Bond Insurer shall have been subrogated until such
subrogation rights have been extinguished in accordance with law,
"Paying Agent" shall mean any bank or trust company or any successor bank or trust
company appointed by the City to act m Paying Agent hereunder.
"Permined Investments" shall mean, to the extent permitted by law:
(A) For purposes other than investments in escrow accounts and investing and receiving credit
for accrued and capitalized interest or for purposes of defeasance of any Series of Bonds;
(i) cash (insured at all times by the Federal Deposit Insurance Corporation or otherwise
collateralized with obligations described in paragraph (ii) below);
(n) direct obligations of (including obligations issued or held in book entry form on the
books of) the Department of the Treasury of the United States of America;
(iii) obligations of any of the following federal agencies which obligations represent the
full faith and credit of the United States of America; Export - Import Bank, Farmers
Home Administration, General Services Administration, U.S. Maritime
Administration, Small Business Administration, Government National Mortgage
Association (GNMA). U.S, Departmcnt of Housing & Urban Development (PHA's),
Federal Financing Bank, and Federal Housing Administration;
(iv) bonds, notes or other evidences of indebtedness rated "AAA" by Standard and Poor's
and "Asa" by Moody's issued by the Federal National Mortgage Association or the
Federal Home Loan Mortgage Corporation with remaining maturities not exceeding
three years;
(v) L'.S dollar denominated deposit accounts, federal funds and banker's acceptances
with domestic commercial banks which have a rating on their short term certificates
of deposit on the date of purchase of "A -I" or "A-1+" by Standard and Poor's and
"N 1" by Moody's and maturing no more than 360 days after the date of purchase,
For purposes hereof, ratings on holding companies shall not be considered as the
rating of the bank;
(vi) commercial paper which is rated at the time of purchase in the single highest
classification, "A-1+" by Standard and Poor's and "P-1" by Moody's and which
matures not more than 270 days after the date of purchase;
aaouwi , 3
ososrr,r.i
Temp Reso #8249
May 21, 1998
Revised May 21, 1998
(vii) investments in a money market fund rated "AAArn" or "AAAm—G" by Standard and
Poor's and rated in the two highest categories by Moody's;
(vur) preCpnded municipal obligations defined as follows. any bonds or other obligations
of any state of the United States of Ammerica or of any agency, instrumentality or local
i governmental unit Ofany such state which are not callable at the option of the obligor
prior to maturity or as to which irrevocable instructions have been given by the
obligor to call on the date specified in the notice; and
L, (1) which are rated. based on the escrow, in the highest rating category of
iStandard and Poor's and %body's, or any successors thereto: or
(2) which are fully secured as to principal and interest and redemption premium,
if any, by a fund consisting Only ofeash of obligations described in paragraph
Gi) above, which fund may be applied ody to the payment of such principal
of and interest and redemption premium, if any, on such bonds or other
obligations on the manrfry date or dates thereof or the specified redemption
date or dates pursuant to such irrevocable instructions, as appropriate, and
(3) which fund is sufficienr, as verified by a nationally recognized independent
certified public accountan, to pay principal of and interest and redemption
Premium. if mv, on the bonds or other obligations described in this paragraph
On the maturity date or dates thereof or on the redemption date or dates
specified in the irrevocable instructions referred to above, as appropriate;
(fx) investment agreements approved in writing by each Municipal Bond Insurer
(supported by appropriate opinions ofcounsel) with notice to Standard and Poor's
and Moody's:
(x) certificates of deposit properly secured at all times by collateral security described in
either Or both of paragraphs (1) and (2) of this definition or in the collateral
Provisions of Chaprer 280, Florida Statutes, as amended, and issued by commercial
banks, savings and loan associations or mutual savings banks chartered by the State
or the United States of America, and bank must receipts issued by commercial bank
or trust companies chartered by the State or the United States of America upon any
securities described in paragraph (1) of this definition;
N) the following u"cstrnents fully insured by the Federal Deposit Insurance Corporation
or the Federal Savings and Loan Insurance Corporation: (A) certificates of deposit,
� oaoehwi;i s
Temp Reso #82,: I
May 21, 19',
Revised May 21, 191,
(S) savings accounts, (C) deposit accounts, or (D) depository receipts of a bans I
savings and loan association Or mutual savings bank;
(xii) units of participation in the Local Government Surplus Funds Trust Fund cstablishe I
Pursuant to Part IV, Chapter 219, Florida Statutes, as amended, or any simil:
common trust fund which is established pursuant to Swte law as a legal depositor
of public moneys;
(xiii) other fours of investments approved in waiting by each Municipal Bond Insurer wu, I
notice to Standard and Poor's and Moody's; and
(B) for purposes of dcfessanee, investments in refunding escrow accounts, and for the purpos I of investing and receiving premium credit for accrued and capitalized interest, only this investments described in (i) and (ii) above,
"Pledged Revenues", shall mean the Sales Tax Revenues. Revenues and any Additional pledges I
"Project" shall mean one or more municipal capital projects to be financed or refinanced.
in whole or in pan, by a Series of Bonds and identified as such in the resolution sotharizing the
issuance of said Bonds. For purposes of phis Resolution the Project means the repair and rcsurfacfng
ofpublic roadways widen the City; median beautification and other improvements to such roadways.
provided that no such improvements (or contract relating thereto) shall individually involve a cost
to the City in excess of two and one-half percent (2K%) of the then current general fund and
enterprise fund budgets of the City; the costs and fees associated with the issuance of the Bonds.
funding a reserve fund and funding capitalized interest with respect thereto.
"Registrar" shall mean a bank or must company or any successor bank or trust company
appointed by the City to act as Registrar hereunder and any successor thereto.
"Reserve Account Insunnee Policy" shall mean the insurance policy, surety bond or other acceptable evidence of insurance, if any, deposited in the Debt Service Reserve Account in lieu of
or in partial substitution for cash or securities on deposit therein. The issuer providing such Reservc
Account Insurance Policy shall be an insurance company, corporation Or financial institution
authorized to issue a Reserve Account Insurance Policy whose policy, security or other evidence of
insurance results in the rating of the municipal obligations secured thereby to be rated in one of the two highest rating categories of both Moody's and Standard & Poor's.
"Reserve Account Letter ofCredit" shall mean the irrevocable; transferable letter ofcredit, ' if any, deposited in die Debt Service
, Reserve Account in lieu of or in partial substitution for cash or
- oaarwi:i
Temp Reso 418249
May 21, 1998
.� Revised May 2L 1998
i� securities on deposit therein. The issuer providing such letter of credit shall 6e a banking
association, bank or trust company or branch thereof whose letter of credit results in the rating of
municipal obligations secured by such letter of credit to be rated in one of the two
categories of both Moody's and Standard & poor-s. highest rating
1 "Reserve Requirement" shall mean the lesser of (1) Maximum Annual Debt Service, or
10% of the original principal amount of the Bonds, or (iii) 125% of Average Annual Debt
Service; provided however, that the Reserve Requirement for the Series 1998 Bonds may be initially
funded at a level such that interest earnings on the Debt Service Reserve Account, retained therein,
will result in accrual of monies on deposit equal to the Debt Service Reserve Requirement within
two
years from the dart of issuance of the Series 1998 Bonds and such funding and accrual of
interest will satisfy the Reserve Requirement for such nvo-year period.
"Rnolution" shall mean this Resolution as the same may from time to time be amended and
supplemented in accordance with the terms hereof.
"Sales Tax Revenues" shall mean the proceeds derived by the City from the local
government half -cent sales tar levied and collected pursuant to Chapter 212, Part 1. Florida Statutes,
and distributed to the City pursuant to Chapter 218. Pan VI, Florida Statures, as amended, and to the
extent provided in any supplemental resolution of the City, any additi distributed to the City, onal sales tax revenues
"Serial Bonds" shall mean the Bonds of a Series which shall be stated to mature in annual
y installments but not including Term Bonds.
"Series" shall mein all ofthe Bonds authenticated and delivered on original issuance and
Pursuant to this Resolution or any supplemental resolupon authorizing such Bonds as a separate
Series of Bonds, or any Bonds thereafter authenticated and delivered in Ifcu of or in substitution for
' such Bonds pursuant to Article 11 hereof, regardless of variations in maturity, interest rate or other
provisions,
"Series 1998 Bonds" shall mean the initial Resolution. Scries of Bonds Issued under and pursuant to this
"Standard and Poor's" shall mean Standard and poor's Ratings Services. a division of the
McGraw-Hill Companies, Inc., its successors and assigns and if Standard and Poor's shall be
dissolved Or liquidated or shall no longer perform the functions of a securities rating agency,
"Standard and Poor's" shall W deemed to refer to any other nationally recognized agency designated by the City and approved by each Municipal Bond Insuresecurities rating
s
oeoehmi:i '
Tcmp Reso #8249
May 21, 1998
Revised May 21, 1998
"State" shall mean the State of Florida,
"Term Bonds^ shall mean the Bonds of any Series which shall be stated to mature on one
date and for the amortization of which payments an required to be made into the Bond Redemption
Account in the Sinking Fund -
Words importing singular number shall include the plural number in each case and vice
versa, and words importing persons shall include firms and corporations.
SECTION 1.2 . This Resolution is adopted
Pursuant to the provisions of the Act.
SECTION 1.3 ELVDNOS, It is hereby ascertained, determined and declared
(A) That it is necessary for the health, safety and economic welfare of the City and its inhabitants
that the Bond proceeds be expended for the Project in the manner provided in this Resolution.
(B) That the Pledged Revenues are not pledged and encumbered in any manner; and it is deemed
necessary and advisable to pledge such Pledged Revenues to the payment of the principal interest and premium, if any, on the Bonds authorized herein. of and
(C) That the estimated pledged Revenues to be derived in each year hereafter will be sufficient
to pay the principal of and interest and premium ff any on the Bonds, as the same become due and
payable, and all sinking fund, reserve and other payments provided for in this Resolution.
(D) That the principal of -and interest on the Bonds, and all of the reserve, sinking fund and other
Payments provided for in this Resolution will be secured equally and rambly by a lien on and pledge
of the Pledged Revenues all as provided herein; and the ad valorem taxing power of tlhc City, or the
taxation of real or personal property in the City or the application of any other funds of the City have
not been authorized to pay the principal of and interest and premium, if any, on the Bonds, or to
make any of the reserve, siding fund or other payments provided for in this Resolution, and the
Bonds shall not constitute a debt of the City or be a lien upon any other property whatsoe City. ver of the
(E) That the cost of the Project shall be deemed to include, but shall not be limited to, the cost
Of any lands or real estate, including easements or other interests therein, or any other pro or personal, as determined by the City to Perry, real
be necessary therefor; discount on the sale of the Bonds,
if any; capitalized interest on the Bonds for a period to be determined by the City in a manner
provided by law: deposits to be made in the Debt Service Reserve Account for the Bonds or such
other funds Or accounts as may be provided herein, if any; administration expenses; bond insurance
cagnnt,i
Temp Reso #8249
?lay 21. 1998
Revised May 21, 1999
premiums or surety or Icner or credit fees; expenses for engineers; legal expenses; expenses for fiscal
agents or financial services; expenses for estimates of costs and of revenues; expenses for plans,
specifications and surveys; expenses of making rebate calculations; and such other expenses as may
be necessary or incidental to the acquisition and construction of the Project.
(F) That the Bonds may be issued at one time or from time to time as determined by the Ciry.
SECTION 1.4 . In consideration of
the acceptance of the Bonds authorized to he issued hereunder by those who shall own the same from
time to time, this Resolution shall be deemed to be and shall constitute a contract between the City
and such Bondholders, and the covenants and agreements herein set forth to be performed by the
City shall be for the equal benefit, protection and security of the owners of anv, and all of such
Bonds, all of which shall be of equal rank and without preference, priority or distinction of any of
the Bonds over any other thereof except as expressly provided therein and herein.
ARTICLE 11
AUTHORIZATION, TERNS, EXECUTION AND
REGISTRATION OF BONDS
SECTION 2A AUTH TI(UN OF RONns. Subject and pursuant to the
Provisions of this Resolution, Bonds of thc City to be known as "City of Tamarac, Florida Revenue
Bonds, Series 1998", are hereby authorized to be issued th the aggregate principal amount of not
exceeding Fifteen Million Dollars (S15,000,000) for the purpose of financing the repair and
resurfacing of public roadways in the City, and paying the costs of issuance, funding a reserve fund
and funding capitalized interest with respect to the Bonds, which Bonds may be issued all at one time
Of from time to time in one or more Series, and if in Series, may be dated, numbered, and designated
as to Series, all as shall be determined by subsequent resolution of the City.
The Bonds may, if and when authorized by the City pursuant to this Resolution, be issued
in one or more Series, with such further appropriate particular designations added to or incorporated
in such tide for the Bonds of any particular Sencs as the City may dercrmine and as may be nccessan
to distinguish such Bonds from the Bonds of any other Series. Each Bond shall bear upon its face
the designation so determined for the Series to which it belongs.
The Bonds shall be issued for such purpose or purposes; shall bear interest at such rate or
rates not exceeding the maximum rate permitted by law; and shall be payable in lawful money of thc
United States of America on such dates; all as determined by this Resolution or subsequent
Resolution of the City.
OR"Jrvi.1
Temp Reso #8249
May 21, 1999
Revised May 21, 1998
Bonds had not ceased to hold such office. Any Bond may be signed and sealed on behalf of the City
by such person as at the actual time of the execution of such Bond shall hold the proper office,
although at the date of such Bonds such person may not have held such office or may not have been
so authorized.
The Bonds of each Series shall bear thereon a certificate of authentication, in the form set
forth in Section 2.9 of this Resolution, executed manually by the Registrar. Only such Bonds as shall
bear thereon such certificate of authentication shall be entitled to any right or benefit under this
Resolution and no Bond shall be valid or obligatory for any purpose until such certificate of
authentication shall have been duly executed by the Registrar. Such certificate of the Registrar upon
any Bond executed on behalf of thc City shall be conclusive evidence that the Bond so authenticated
has been duly authenticated and delivered under this Resolution and that the Holder thereof is
entitled to the benefits of this Resolution.
In the event any Series of Bonds are validated, a validation certificate shall be placed on the
back of the Bonds and signed with the manual or facsimile signatures of the Mayor and City Clerk,
and the City may adopt and use for that purpose the facsimile signature of any person who shall have
been such Mayor and City Clerk at any time on or after the date of said Bonds, notwithstanding that
he may have ceased to be such ?layor or City Clerk at the time when said Bonds shall be actualh
delivered.
SECTION 2.5 At
the option of the registered Holder thereof and upon surrender thereo f at the prtncipal corporate trust
office of the Registrar with a written instrument of transfer satisfactory to the Registrar duly executed
by the registered Holder or his duly authorized attorney and upon payment by such Holder of any
charges which the Registrar or the City may make as provided in this Section, the Bonds may be
exchanged for Bonds of thc same aggregate principal amount of the some Series and maturity of any
other authorized denominations.
The Registrar shall keep books for the registration of Bonds and for the registration of
transfer of Bonds. The Bonds shall be transferable by the Holder thereof in person or by his attorney
duly authorized in writing only upon the books of the City kept by the Registrar and only upon
surrender thereof together with a written instrument of transfer satisfactory to the Registrar duly
executed by the Holder or his duly authorized attorney. Upon the transfer of any such Bonds, the
City shall cause to be issued in the name of the transferee anew Bond,
The City, the Paying Agent and the Registrar may deem and treat the person in whose name
any Bond shall be registered upon the books kept by the Registrar as the absolute Flolder of such
Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on
account of, the principal of. premium, if any, and interest on such Bond as the same become due and
Temp Reso #8249
May 21, 1998
Revised Mav 21, 1998
The Bonds shall be issued in such denominations and such forth, 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 Agents and Registrars; shall mature
in such years and amounts; shall provide that the proceeds thereof be used in such manner; all as
determined by this Resolution or subsequent resolution of the City. The City may issue Bonds which
may be secured by a Municipal Bond Insurance Policy all as shall be determined by this or
subsequent resolution of the City.
SECTION 22 DESCRIPTION OF BONDS. Unless otherwise specified by the City
in subsequent proceedings, the Bonds of a Series shall be payable, with respect to interest, principal
and premium, if any, many coin or currency of the United States o�Amenca which at the time of
payment is legal tender for the payment of public and private debts; shall be issued in the form of
fully registered Bonds; shall be dated as determined by subsequent resolution of the City relating to
the issuance of such Series of -Bonds; shall bear interest from their date at a rate not exceeding the
legal rate per annum, with interest mailed to the registered Holder thereof by the Paying Agent at the
address shown on the registration books of the City held by the Registrar at the close of business on
the 15th day of the calendar month preceding an Interest Payment Date. provided, however, that if
such 15th day is a Saturday, Sunday or holiday, then to the registered Holder and at the registered
address shown on the registration books of the City at the close of business on the day next preceding
such 15th day of the month which is not a Saturday, Sunday or holiday. shall be lettered and shall
be numbered in such manner as may be prescribed by the Registrar, shall be in the denomination of
$5,000 or any integral multiple thereof, and shall mature on such dates, in such years and in such
amounts, all as provided for by subsequent resolution of the City.
The Bonds issued hereunder may be Serial Bonds or Term Bonds and may be capital
appreciation bonds, capital appreciation and income bonds and option bonds, as determined by
subsequent resolution of the City.
SECTION 2.3 REDEMETION PROVISIONS, The Bonds of each Series may be
subject to redemption prior to maturity at such times, at such redemption prices and upon such tents
in addition to the terms contained in this Resolution as may be determined by subsequent resolution
of the City.
SECTION 2.4 EXECUTION, OFF 5. Said Bonds shall be signed in the name
of the City by the Mayor of thc City and its seal shall be affixed thereto or imprinted or reproduced
thereon and attested by the City Clerk of the City. The signatures of said Mayor and City Clerk on
said Bonds may be manual or ficsuile signatures, In case any one or more of the officers who shall
have signed or sealed any of the Bonds shall cease to be such officer of the City before the Bonds
so signed and scaled shall have been actually sold and delivered, such Bonds may nevertheless be
spld and delivered as herein provided and may be issued as if the person who signed and scaled such
ORMJni,i 0
Tcmp Reso #8249
May 21, 1998
Revised May 21, 1998
for all other purposes. All such payments so made to any such Holder or upon his order shall be
valid and effectual to satisfy and discharged the liability upon such Bond to the extent of the sum or
sums so paid, and neither the City, the Paying Agent nor the Registrar shall be affected by any notice
to the contrary.
In all cases in which the privilege of exchanging Bonds or transferring Bonds is exercised,
The City shall execute and the Registrar shall authenticate and deliver Bonds in accordance with the
provisions of this Resolution. All Bonds surtendemd in anv such exchanges or transfers shall
forthwith be delivered to the Registrar and cancelled by the Registrar in the manner provided in this
Section. There shall be no charge for any such exchange of transfer of Bonds, but the City or the
Registrar may require the payment of a sum sufficient to pay any tax, fee or other governmental
charge required to be paid with respect to such exchange or transfer. Neither the Ciry nor the
Registrar shall be required (a) to transfer or exchange Bonds of my Series for a period of 15 days
next preceding m Interest Payment pate on such Bonds of such Series or next preceding any
selection of Bonds of such Series to be redeemed or thereafter until after the mailing of any notice
of redemption; or (b) to transfer or exchange any Bonds of any Series called for redemption.
Except as may otherwise be provided with respect to option Bonds in the proceedings of the
City providing for the issuance thereof, all Bonds paid or redeemed, either at or before maturity shall
be delivered to the Paying Agent when such payment or redemption is made, and such Bonds,
together with all Bonds purchased by the City, shall thereupon be promptly cancelled. Bonds so
cancelled may at any time be destroyed by the Paying Agent. who shall execute a certificate of
destruction in duplicate by the signature of one of its authorized officers describing the Bonds so
destroyed, and one executed certificate shall be filed with the City and the other executed certificate
shall be retained by the Paying Agent.
SECTION 2.6 . Incase
env Bonds shall become mutilated, destroyed, stolen or lost, the Citv may execute and the Registrar
shall authenticate and deliver a new Bond of like Series, date, maturity, denomination and interest
rate as the Bond so mutilated, destroyed, stolen or lost; provided that, in the east of any mutilated
Bond, such mutilated Bond shall first be surrendered to the City and, in the case of any lost, stolen
or destroyed Bond, there shall first be fiunishcd to the City and the Registrar evidence of such loss,
theft, or destruction satisfactory to the City and the Registrar, together with indemnity satisfactory
to them. In the event any such Bond shall be about to mature or hayc matured or have been called
for redemption, instead of issuing a duplicate Bond. the City may direct the Paying Agent to pay the
same without surrender thereof. The City and the Registrar may charge the Holder of such Bond
their reasonable fees and expenses in connection with this transaction. Any Bond surrendered for
replacement shall be cancelled in the same manner as provided in Section 2.5 of this Resolution.
oRoenvri
Temp Reso *9249
May 21, 1998
Revised May 21. 1998
Any such duplicate Bonds issued pursuant to this Section shall constitute additional
contractual obligations on the part of the City, whether or not the lost, stolen or destroyed Bonds be
at any time found by anyone, and such duplicate Bonds shall be entitled to equal and proportionate
benefits and rights as to lien on and source and security for payment from the Pledged Revenues with
all other Bonds issued hereunder.
SECTION 2.7
The definitive Bonds of each Series shall be lithographed or printed with steel engraved borders
lithographed or printed; provided, however, type written Bonds may be delivered to a registered
securities depository for use in a book<emry system or to a purchaser who has specifically agreed to
such toms. Until the definitive Bonds are prepared, the Mayor and the City Clerk of the City may
execute and the Registrar may authenticate, in the same manner as is provided in Section 2A hereofl
and deliver, in lieu of definitive Bonds, but subject to the same provisions, limitations and conditions
as the definitive Bonds. one or more printed, lithographed or typewritten temporary fully registered
Bonds, substantally of the tenor of the definitive Bonds in lieu of which such temporary Bonds are
issued, in authorized denominations or any whole multiples thereof, and with such omission&
insertions and variations as may be appropriate to such temporary Bonds. The City at its own
expense shall prepare and execute and, upon the surrender at the corporate trust office of the
Registrar of such temporary Bonds for which an payment or only partial payment ban been provided.
the Registrar shall authenticate and, without charge to the Holder thereof, deliver in exchange
therefore, at the principal corporate oust office of the Registrac, definitive Bonds of the same
aggregate principal amount. Series and maturity as the temporary Bonds surrendered. Until so
exchanged, the temporary Bonds shall in all respects be entitled to the same benefits and secunry as
definitive Bonds issued pursuant to this Resolution.
SECTION 2.8 BOOK ENTRY. Bonds may be issued in book entry form or
immobilized with a registered depositary or its nominee as may be determined by subsequent
proceedings of the City.
SECTION 2.9 FORM OF BONDS, The text of the Bonds shall be of substantially
the following tenor, with such omissions, inscrtiom and variations as may be necessary and desirable
and authorized or permitted by this Resolution:
Temp Rcso n8249
May 21, 1998
Revised May 21, 1998
principal amount of not exceeding Dollars (S_ ) of like date,
tenor and effect. except as to number; date of maturity and interest rate, issued for the purpose of
financing the cost of the repair and resurfacing of public roadways within the City (the "Project"),
the costs associated with the issuance of the Bonds, funding a reserve fund and funding capitalized
interest, under the authority of and in full compliance with the Constitution and Statutes of the State
of Florida, including particularly Chapter 166, Florida Statutes, as amended and supplemented, and
other applicable provisions of law, and a resolution duly adopted by the City Commission of the City
on 1999 (hereinafter referred to as the "Resolution") and is subject to all the terms
and conditions of the Resolution.
Reference is hereby [Wade to the further provisions of this Bond set forth on the reverse side
hcmof and such further provisions shall for all purposes have the same effect as if set forth on the
front side hereof.
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 this Bond, and of the Scrics of Bonds
of which this Bond is one, is in f dl compliance with all constitutional, statutory or charter limitations
or provisions.
IN WITNESS WHEREOF, the City of Tamarac, Florida has caused this Bond to be signed
by its Mayor, either manually or with his facsimile signature, and the seal of the City of Tamarac.
Florida or a facsimile thereof to be affixed hereto or imprinted or reproduced hereon, and attested
— by the City Clerk of Tamarac, Florida, either manually of with his facsimile signature, all as of the
first day of , 19 -
CITY OF TAMARAC, FLORIDA
Temp Reso 98249
May 21, 1998
Revised May 21, 1999
[FORM OF BOND)
(Face of Bond)
No. R
UNITED STATES OF AMERICA
STATE OF FLORIDA
COUNTY OF BROWARD
CITY OF TAMARAC
REVENUE BOND,
SERIES 1998
Date of
Interest Maturity Original
Rate Date_ ..Issuance ,i«
KNOW ALL MEN BY THESE PRESENTS that the City of Tamarac, Florida (the "City").
for value received, hereby promises to pay to , or registered assigns, on the date
specified above, solely from the Pledged Revenues hereinafter mentioned, upon presentation and
surrender hereof at the principal corporate trust office of - , as paying agent (said
and/or any bank or trust company to become successor paying agent being herein
called the "Paying Agent"), the principal sum of THOUSAND DOLLARS
with interest thereon at the interest rate per arfnum specified above payable on the first day of
and of each year. Principal of this Bond is payable at
in lawful money of the United States of America. Interest on this Bond is payable by check or draft
of the Paying Agent made payable to the registered owner and mailed to the address of the registered
owner as such name and address shall appear on the registry books of , as
Registrar (said and any successor Registrar being herein called the "Registrar")
at the close of business on the fifteenth day of the calendar month preceding each interest payment
date or the date on which the principal ofit Bond is to paid (the "Record Date"). Such interest shall
be payable from the most recent interest payment date next preceding the date hereof to which
interest has been paid unless the date hereof is an I or 1 to which interest has been
paid, in which case from the date hereof, or unless the date hereof is prior to . 19_, in
which case from 19_ or unless the date hereof is between a Record Date and the next
succeeding interest payment date, in which case from Such interest payment date.
This Bond is one of an authorized issue of Bonds of the City of Tamarac, Florida designated
as its "Revenue Bonds Series 1998" (herein called the "Series 1998 Bonds"), in the aggregate
vanuwi:i t+
Tcmp Reso 48249
May 21, 1998
Revised May 21. 1998
FORM OF CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds delivered pursuant to the within mentioned Resolution.
Date of Authentication:
as Registrar
By
Authorized Officer
[FORM OF VALIDATION CERTIFICATE)
This Bond is one of a Series of Bonds which were validated by judgment of the Circuit Court
of the Seventeenth Judicial Circuit of Florida, in and for Bmward County, Florida tendered on the
—day of , 19
Mayor
City Clerk
[FORM OF BOND INSURANCE LEGEND]
[Back of Bond]
Mayor
(SEAT.) This Bond is payable from and secured by a lien on and pledge of the Pledged Revenues
levied and collected by the City (as such capitalized terms are defined in the Resolution), all in the
Attest manner provided in the Resolution. The City is not obligated to pay this Bond or the interest hereon
except from the Pledged Revenues pledged thereto, and the full faith and credit of the City is not
pledged for the payment of this Bond and this Bond does not constitute an indebtedness of the City
within the meaning of any constitutional, statutory or other provision or limitation; and it is expressly
City Clerk agreed by the Holder of this Bond that such Holder shall never have the right to require or compel
oaw,nei I5 oaoun�.i 16
Temp Rcso #9249
May 21, 1999
Revised May 21, 1998
the exercise of the ad valorem taxing power of the City, or taxation in any form of any real or
Personal property therein, for the payment of the principal of and interest on this Bond, or the making
of any other sinking fund and other payments provided for in the Resolution,
It is further agreed between the City and the Holder of this Bond that this Bond and the
obligation evidenced thereby shall not constitute a lien upon any property of or in the City, but shall
continue a lien ordy on the Pledged Revenues pledged thereto, all in the manner provided in the
Resolution.
[Redemption Provision]
Additional parity Bonds may be issued by the City from time to time upon the conditions and
within the limitations and in the manner provided in the Resolution.
The original registered owner, and each successive registered owner of this Bond shall be
conclusively deemed to have agreed and consented to the following terms and conditions:
a. The Registrar shall keep books for the registration of Bonds and for the registration
of transfers of Bonds as provided in the Resolution. The Bonds shall be transferable by the
registered owner thereof in person or by his attorney duly authorized in writing only upon the books
of the City kept by the Registrar and only upon surrender hereof together with a written instrument
of transfer satisfactory to the Registrar duly executed by the registered owner or his duly authorized
attorney. Upon the transfer of any such Bond, the City shall issue in the name of the trarsferee a new
Bond.
b. The City, the Paying Agent and the Registrar may deers and treat the person in whose
name any Bond shall be registered upon the books kept by the Registrar as the absolute owner of
such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or
on account of, the principal of and interest on such Bond as the same becomes due, and for all other
purposes. All such payments so made to any such registered owner or upon his order shall be valid
and effeewal to satisfy and discharge the liability upon such Bond to the extent of the sum or sums
so paid, end neither the City, the Paying Agent, nor the Registrar shall be affected by any notice to
the contrary.
C. At the option of the registered owner thereof and upon surrender hereto at the
principal corporate trust office of the Registrar with a written instrument of transfer satisfactory to
the Registrar duly executed by the registered owner or his duly authorized attorney and upon
payment by such registered owner of any charges which the Registrar or the City may make as
Provided in the Resolution, the Bonds may be exchanged for Bonds of the same Series and maturity
of any other authorized denominations.
Temp Reso a8249
May 21, 1998
Revised May 21, 1998
ASSIGNMENT AND TRANSFER
FOR VALUE RECEIVED the undersigned sells, assigns and transfers to
(please print or typewrite name and address of transferee)
the written bond and all rights thereunder, and hereby irrevocably constitutes and appoints
Attorney to transfer the within bond on the books kept for registration thereof with full power of
substitution in the premises.
Dazed:
In the presence of
Temp Rcso a8249
May 21, 1998
Revised May 21, 1998
d. In all cases in which the privilege of exchanging Bonds or transferring Bonds is
exercised, the City shall execute and the Registrar shall authenticate and deliver Bonds in accordance
with the provisions of the Resolution. Then: shall be no charge for any such exchange or transfer
of Bonds, but the City or the Registrar may require payment of a sum sufficient to pay any tax, fee
or other governmental charge required to be paid with respect to such exchange or transfer, Neither
the City nor the Registrar shall be required (i) to transfer or exchange Bonds for a period of 13 days
next preceding an interest payment date on such Bonds or next preceding any selection of Bonds to
be redeemed or thereafter until after the mailing of any notice of redemption; or (it) to transfer of
exchange any Bonds called for redemption.
c. By purchase and acceptance of a Bond Oeportion thereof in booktntry form. the
beneficial owner agrees that the City shall have no responsibility for the action of inaction of The
Depositary Trust Company or other registered depositary or any of its participants, nominee`s or
successors m depositary in connection with the Bonds.
wnnnia
Temp Reso 08249
May 21, 1998
Revised May 21. 1998
ARTICLE III
COVENANTS, FUNDS AND APPLICATION THEREOF
SECTION 11 . The Bonds
shall not be and shall not constitute general obligations or indebtedness of the Ciry within the
meaning of any constitutional or statutory provision, but shall be special obligations of the City,
payable solely lion and secured by a lien upon and pledge of the Pledged Revenues in accordancc
with the terms of this Resolution. No Holder of any Bond or any Municipal Bond Insurer or the
issuer of any Reserve Account Insurance Policy or Reserve Account Letter of Credit shall ever have
the right to compel the exercise of any ad valorem taxing power to pay such Bond, or be entitled to
Payment of such Bond from any moneys of the City except from the Pledged Revenues in the manner
provided herein
SECTION 3,2 SECURITY jQ&jQhW, The payment of the principal of and
interest on all of the Bonds issued hereunder and any Additional Parity Bonds hereafter issued, as
Provided herein, shall be secured forthwith equally and ratably by alien on and pledge of the Pledged
Revenues; provided, however, a Series of Bonds may be further secured by a Municipal Bond
Insurance Policy in addition to the security provided herein The Pledged Revenues in an amount
sufficient to pay the principal of and interest on the Bonds herein authorized and to make the
payments into the Sinking Fund and all other payments provided for in this Resolution, are hereby
irrevocably pledged to the payment of the principal of and interest on the Bonds authorized herein,
and other payments provided for herein, as the same become due and payable.
The Pledged Revenues shall immediately be subject to the lien of this pledge without any
physical delivery thereof or further set, 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 City.
The City does further hereby covenant and agree that as long as any of the principal of or
interest on any of the Bonds issued pursuant to this Resolution we outstanding and unpaid, or
payment -hereof not duly provided for, it will not repeal any of the ordinances or resolutions, if any,
pursuant to which it levies, cmlhcs or receives the Pledged Revenues and will not smcnd or modify
said ordinances or resolutions in any manner sop to impair or adversely affect in any manner the
pledge of Pledged Revenues made herein, or the rights of Holders of Bonds issued pursuant to this
Resolution,
The City further covenants that if, in any Fiscal Year, Pledged Revenues we, less than one
hundred twenty-five percent (125y) of the Annual Debt Service Requirement for all Bonds
Outstanding, it shall pledge, to the extent legally available, Additional Pledged Revenues, so that the
pledged Revenues shall be adequate in the next succeeding Fiscal Year to pay at least one hundred
osaroi•i 19
Temp Reso #8249
May 21, 1998
Revised May 21, 1998
twenty-five percent (125%) of the Annual Debt Service Requirement for all Bonds outstanding, and
that such Pledged Revenues shall be sufficient ro make all of the other payments provided herein as
the same become due in such Fiscal You.
The City does further covenant that it has power to irrevocably pledge said Pledged Revenues
to the payment of principal of and interest on the Bonds issued pursuant ru this Resolution and that
the pledge of said Pledged Revenues in the manner provided herein. shall not be subject to repeal,
modification or impairment by any subsequent ordinance or other proceedings of the governing body
Of the City, except as provided herein, or by any subsequent act or acts of the Legislature of Flurida.
SECTION 3.3
(A) All moneys received by the City from the sale of Bonds issued pursuant to this Resolution,
unless otherwise provided by subsequent proceedings of the City, shall be simultaneously disbursed
as follows:
(1) The acemcd interest derived from die sale of Bonds tagedter with capitalized interest,
if any, derived from the proceeds of the Bonds shall be deposited in the Interest
Account, hereinafter created and established, and used for the purpose of paying
interest on said Bonds as the same becomes due and payable.
(ii) Proceeds derived from the sale of Bonds shall be deposited, together with other
moneys lawfully available therefor, if any, in the Debt Service Reserve Account,
hereinafter created and established, m an amount equal to the Reserve Requirement.
For purposes of the initial funding of the Reserve Requirement with respect to the
Series 1998 Bonds, the Debt Service Rescrve Account may be funded in equal
installments over a period not to exceed twenty-four from the date of issuance of
such Series of Bonds.
(iii) The balance of the proceeds derived from the sale of Bonds issued pursuant to this
Resolution shall be deposited in a Construction Fund which is hereby created and
established and used for the purpose of paying the costs of issuance of the said Bonds
and the costs of the Project. The Construction Fund shall be deposited in a bank or
trust company in the State which is eligible under Smte laws to receive deposits of
municipal hinds,
(B) Withdrawals shall be made from the Construction Fond oniv upon receipt of a written
requisition executed by a duly authorized official of the City, specifying the purpose for which such
withdrawal is to be made and certifying that such purpose is one of the purposes provided for in this
Resolution; provided, however, that no such written approval shall be required for legal, financial
Tcmp Reso #8149
May 21. 1998
Revised May 21. 1998
and engineering expenses and fees and for costs of issuance in connection with such Bonds. If for
any reason the monevs in the Construction Fund, or any part thereof, are not necessary for, or are not
applied to the purposes provided in this Resolution for the Construction Fund, then such unapplicd
proceeds, upon certification of the Finance Director of the City that such surplus proceeds we not
needed for the purposes of the Construction Fund, shall be disbursed in the following order:
First, to the Debt Service Reserve Account, hereinafter created and established, to the full
extent necessary to make the amount then on deposit therein equal to the Reserve Requirement.
Second, the balance. if any, to be used for any lawful capital expenditures in connection with
the City's capital improvement plan or, at the option of the City, the redemption or purchase of
Outstanding Bonds, if any.
(C) Any moneys received by the City from the State or from the United States of Amcrica or any
agencies thereof for the purpose of financing part of the cost of the acquisition and construction of
the Project, shall be deposited in the Construction Fund and used in the same manner as other Bond
proceeds are used therein; provided, however, that such moneys shall not be so deposited in the event
and to the extent that the City has incurred debt in anticipation of the receipt of such moneys for
payment of such debt and provided further that separate accounts may be established in the
Construction Fund for moneys received pursuant to the provisions of this paragraph whenever
required by Federal or State regulations.
The proceeds of the sale of the Bonds shall be and constitute trust funds for the purposes
hereinabove provided and there is hereby created a lien upon such moneys, until $0 applied, in favor
of the Holden of said Bonds.
SECTION 3.{ COM STS OF THE CITY. The City hereby covenants and agrees
with the Holden of any and all of the Bonds issued pursuant to this Resolution as follows.
(A) Arbitmgg Covenant Rebate Fund- A special fund is hereby created, established and
designated the City of Tamarac Revenue Bond Rebate Fund (the "Rebate Fund"). Amounts on
deposit in the Rebate Fund shall not be a pan of the Fledged Revenues and are not pledged to the
payment of the principal of, or interest or premium, if any, an the Bonds,
In order to maintain the exclusion from federal gross income of interest on the Bonds, and
for no other purpose, the City covenants to comply with the Code. In furtherance of the covenant
contained in the preceding sentence, the City agrees to comply with the tax certificate delivered by
the City in connection with the issuance of Bonds, including, but not limited to:
oaourori 21 ososrwi.i
Temp Peso 48249
May 21. 1998
Revised May 21, 1998
(1) Making a determination in accordance with the Codc of to amount required to be
deposited into the Rebate Fund, and making such deposit;
(ii) Paying on the dates and in the manner required by the Code to the United States
Treasury from the Rebate Fund and any other legally available moneys of the City
such amounts as shall be required by the Code to be rebated to the United States
Treasury; and
(iii) Keeping such records of The determinations made pursuant to this Section 3.4(A) as
shall be required by the Code, as well as evidence of the fair market value of arty
investments purchased with the proceeds of the Bonds.
The City covenants and agrees with the Holders of the Bonds that the City shall not take any
action or omit to take any action, which action or omission, if reasonably expected on the date of
initial issuance and delivery of the Bonds, would cause any of the Bonds to he "private activity
bonds" or "arbitrage bonds" within the meaning of Sections 141(a) and 148(a), respectively, of the
Code.
The City shall make any and all payments required to be made to the United States
Department of the Treasury in connection with the Bonds pursuant to Section 148(f) of tic Code
from amounts on deposit in the funds and accounts established under this Resolution and available
therefor -
Notwithstanding any other provision of this Resolution to the contrary, as long as necessary
in order to maintain the exclusion from federal gross income of interest on the Bonds, the covenants
contained in this section shall survive tire payment of ncc Bonds and the interest thereon, including
any payment or discharge thereof pursuant to Article III of this Resolution.
(B) %k>i=1E2X.SNS.EWd That the Pledged Revenues shall be deposited in a special fund in
a bank or trust company which is eligible under the laws of the State of Florida to receive deposits
of municipal funds, which fund is hereby created, established and designated w the "Pledged
Revenue Fund" (hcrcinafer relcmed tow the "Revenue Fund"). Said Revenue Fund shall constitute
a trust fund for the purposes provided in this Resolution, and shall for The purposes of an accounting
be kept separate and distinct from all other funds of the City and used only for the purposes and in
the manner provided for in this Resolution.
(C) DispQsitlo 9� f> PledPSdBcyf"... -n. There are hereby created and established the following
funds and accounts:
Temp Reso #8249
May 21, 1998
Revised May 21, 1998
The "Pledged Revenue Sinking Fund" (herein referred to a; the "Sinking Fund" y and widen
this Sinking Fund there arc also hereby created four (4) separate accounts to be known as the
"Interest Account." the "Principal Account." the "Bond Redemption Account" and the "Debt Service
Reserve Account. -
The Sinking Fund and the four (4) separate accounts therein shall be deposited in a bank or
trust company in the Suite which is eligible under State laws to receive deposits of municipal funds.
All revenues at any time on deposit in to Revenue Fund shall be disposed of only in the
following mariner;
(i) Revenues shall fast be used, to the full extent necessary, for deposit into the Interest
Account in the Sinking Fund, on the fifteenth (15th) day of each month, beginning
with the fificcnth (15th) day of the first full calendar month following the date on
which any or all of the Bonds are delivered to the purchasers thereof, such sums as
shall be sufficient to pay one -sixth of the interest becoming due on the Bonds on the
next semi-annual Interest Payment Date, provided, however, that such monthly
deposits for interest shall not be required to be made into the Interest Account to the
extent that money on deposit therein is sufficient for such purpose.
In the event that the period to elapse between Interest Payment Dates will be other
than six (6) months, then such monthly payments shall be increased or decreased as
appropriate, in sufficient amounts to provide for the payment of all interest due on
the next Interest Payment Date. Any monthly payment from the Revenue Fund tobe
deposited as set forth above, for the purpose of meeting interest payments for any
Serics of Bonds, shall be adjusted, as appropriate. to reflect the frequency of Interest
Payment Dates applicable to such Series.
(ii) (1) Revenues shall next be used, to the full extent necessary for deposit in the
Principal Account on the fifteenth (15th) day ofeach month in arch year, one -twelfth
(1112rh) of the principal amount of the Serial Bonds which will mature and becorrie
due on such annual maturity dates, beginning on such dates at least one year prior to
such maturity dates, os shall hereafter be detcritumd by subsequent proceedings of
the City; provided, however, that such monthly deposits for principal shall not be
required to be made into the Principal Account to the extent that monev on deposit
Therein is sufficient for such purpose.
In the event the period to elapse between the date of delivery of the Bonds and the
next principal payment date will be other than twelve (12) months, dim such monthly
Payments shall be increased or decreased, as appropriate, in sufficient amounts to
oeaim;i 23
Oxo6rroi;i
Temp Rcso #8249
May 21, 1998
Revised May 21, 1998
provide the required principal amount maturing on the next principal payment date.
Any monthly payment from the Revenue Fund to be deposited as set forth above for
the purpose of meeting payments of principal of the Bonds, shall be adjusted- as
appropriate, to reflect the frequency of principal payments applicable to such Series.
(2) Revenues shall next be used, to the full extent necessary, for deposit into the
Bond Redemption Account on the fifteenth (15th) day of each month in each year,
one -twelfth (1/12th) of the principal amount of the installment coming due in the
next sinking fund payment date, beginning at (cast one year prior to the first such
sinking fund payment date, in such amount and in each year as may be required for
the payment of the principal amount of Term Bonds payable from the Bond
Redemption Account, as shall hereafter be determined by subsequent proceedings of
the City.
The moneys in the Bond Redemption Account shall be used solely for the purchase
or redemption of the Tenn Bonds payable therefrom. The City may at any time
purchase any of said Tenn Bonds at prices not greater than the then redemption price
of said Term Bonds. If the Term Bonds are not then redeemable prior to maturity,
the City may purchase said Term Bonds at prices not greater than the redemption
price of such Term Bonds on the next ensuing redemption date. The City shall be
mandatorily obligated to use any moneys in the Bond Redemption Account for the
redemption prior to maturity of such Term Bonds in such manner and at such times
as shall be detenruincd by subsequent proceedings of the City; provided, that the City
shall not be obligated to redeem such Tenn Bonds prior to maturity unless and until
there are sufficient moneys on deposit in the Bond Redemption Account to provide
for the redemption of at least Twtnty-Five Thousand Dollars ($25,000) principal
amount of Tenn Bonds at any one time. If, by the application of moneys in the Bond
Redemption Account, the City shall purchase or call for redemption in any year Tcnn
Bonds in excess of the installment requirement for such year, such excess of Term
Bonds so purchased or redeemed shall be credited in such manner and at such times
as the Finance Director of the City shall determine over the remaining installment
payment dates.
No distinction or preference shalt exist in the use of the moneys on deposit in the
Revenue Fund for pavment into the Interest Account, the Principal Account and the
Bond Redemption Account, such accounts being on a parity with each other as to
payment from the Revenue Fund.
(iii) Revenues shall next be used, to the full extcnt necessary, for deposits into the Debt
Service Reserve Account on the fi ftccnth (ISth) day of each month in each yea,
No)",
Temp Rcso #8249
May 21, 1998
Revised May 21, 1998
Moneys in the Debt Service Reserve Account shall be used only for the purpose of
making payments into the Interest Account, Principal Account and Bond Redemption
Account when the moneys in the Revenue Fund are insufficient therefor.
Anv moneys in the Debt Service Reserve Account in excess of the Reserve
Requirement for the Bonds and my Additional Parity Bonds hereafter issued shall
be transferred to the Construction Fund during construction of a Project and
thereafter to the Revenue Funds.
The Debt Service Reserve Account shall be valued at least once in each Fiscal Year.
(iv) Revenues shall next be used for the payment of my subordinated obligations
hereafter issued by the City in accordance with Section 3,4(F) of this Resolution,
which subordinate obligations shall have such liar on the Pledged Revenues as the
City shall determine in the proceedings authorizing the issuance of such subordinated
obligations.
(v) After the fifteenth (15th) day of each month, any monevs remaining in the Revenue
Fund, after all required current payments into the Interest Account, the Principal
Account, the Bond Redemption Account, and the Debt Service Reservc Account,
including any deficiencies for prior payments, have been made in full, as provided
in this Resolution, shall be withdrawn from the Revenue Fund, transferred to the
general fund of the City and used by the City for any lawful purpose. but no moneys
in the Revenue Fund shall ever be used for any such purpose until all such required
current payments into the Interest Account, the Principal Account, the Bond
Redemption Account, and the Debt Service Reserve Account, including any
deficiencies for prior required payments, have been made in full. and the City shall
have complied fully with all the covenants and provisions of this Resolution.
(vi) if on any payment date the Pledged Revenues are insufficient to place the required
amount in any of the funds or accounts or for any of the purposes provided above, the
deficiency shall be made up on the subsequent payment dates,
(vii) All moneys levied and collected by the City as Pledged Revenues shall be deposited
into the Revenue Fund within twenty-four (24) hours after the receipt thereof to the
extent practicable.
(D) IaYcalw:aLs]1.Euad5. The Interest Account, Principal Account, Bond Redemption Account,
Debt Service Rasrnc Account, Construction Fund, Revenue Fund and all other special funds created
eaoe)p,.�
Temp Rcso #8249
May 21. 1998
Revised May 21, 1998
beginning with the fifteenth (I5th) day of the first full calendar month following the
data on which any or all of the Bonds issued hereunder are delivered to the
purchasers thereof, such sums as shall be at least sufficient to pay an amount equal
to one -twelfth (1/12th) of the difference between the amount on deposit in the Debt
Service Reserve Account and the Reserve Requirement; provided. further, that no
payments shall be required to be made into the Debt Service Reserve Account
whenever and as long as the amount deposited therein (including my Reserve
Account Insurance Policy or Reserve Account Letter of Credit) shall be equal to the
Reserve Requirement.
Notwithstanding the foregoing provisions, in lieu of the required deposits of
Revenues into the Debt Service Reservc Account, the City may cause to be deposited
into the Debt Service Reserve Account a Reservc Account Insurance Policy tr a
Reserve Account Letter of Credit for the benefit of the Bondholders in an amount
equal to the difference between the Reserve Requirement and the sums then on
deposit in the Debt Service Reserve Account, if any, which Reserve Account
Insurance Policy or Reserve Account Letter of Credit shall be payable or available
to be drawn upon, as the case may be, upon the giving of notice as required
thereunder) on any Interest Payment part on which a deficiency exists which cannot
be cured by moneys in any other fund or account held pursuant to this Resolution and
available for such purpose. Ifit disbursement is made under the Reserve Account
Insurance Policy or the Reserve Account Letter of Credit, the City shall be obligated
to either reinstate the maximum limits of such Reserve Account Insurance Policy or
Reserve Account Letter of Credit immediately following such disbursement so that
amounts on deposit therein equal the Reserve Requirement, or to deposit into the
Debt Service Reserve Account from the Revenues, w herein provided, funds in the
amount of the disbursement made under such Reserve Account Insurance Policy or
Reserve Account Letter of Credit, in twelve (12) equal monthly installments as
provided in the first paragraph of this Section )-4(C)(iii).
In the event that any moneys shall be withdrawn from the Debt Service Reserve
Account for payments into the Interest Account, Principal Account and Bond
Redemption Account, such withdrawals shall be subsequently restored from the
Pledged Revenues available after all required payments have been made into the
Interest Account. Principal Account and Bond Redemption Account- including any
deficiencies for prior payments unless restored by the reinstatement of the maximum
limits of a Rcscrve Account Insurance Policy or Reserve Account Letter of Credit.
Temp Reso k8249
May 21, 1998
Revised May 21, 1998
and established by this Resolution, but not including the Rebate Account, shall constitute trust funds
and shall be invested at the direction of the City 4.c provided herein.
Moneys on deposit in the Revenue Fund, Interest Account, Principal Account and Elie Bond
Redemption Account may be invested in Permitted Investments maturing not later than the dates on
which such moneys will be needed for the purposes of such fund or account.
Moneys on deposit in the Debt Service Reserve Account may be invested 0) in direct
obligations of the United States of America, or fill in obligations fully guaranteed by the United
States of America, maturing not later than the dates on which such moneys will be needed for the
purposes of such fund or account.
All income and earnings received from the investment and reinyestment of moneys on
deposit in the Interest Account, Principal Account, and Bond Redemption Account shall be
transferred on the next business day following their receipt to the Revenue Fund and used in the
same manner and order of priority as other moneys on deposit therein.
All income and earnings received from the investment and reinvestment of moneys on
deposit in the Debt Service Reserve Account shall be transferred on the next business day following
their receipt to the Interest Account and used in the same manner as moneys on deposit therein as
provided in Section 3.4(C)(i) of this Resolution, provided that the amount on deposit in the Debt
Service Reserve Account equals Reserve Requirement on the Bonds and any parity obligations
(taking into account any Reserve Account Insurance Policy or Reservc Account Letter of Credit).
In the event that the amount on deposit in the Debt Service Reserve Account is less than the Reservc
Requirement, all income and earnings received from the investment and reinvestment of moneys on
deposit therein shall be retained therein. Notwithstanding the foregoing, any moneys in the Debt
Service Reserve Account in excess of the Restive Requirement for the Bonds shall be transferred
to the Construction Fund during construction of a Project.
Moneys on deposit in the Construction Fund may be invested and reinvested to the
fullest extent practicable in Permitted Investments maturing not later than such date or dates on
which such moneys will be needed for the purposes of the Construction Fund. The earnings and
investment income derived from the monevs and investments on deposit in the Construction Fund
shall be deposited and maintained in the Construction Fund and used for the purposes thereof.
For the purpose of investing or reinvesting, the City may commingle moneys in the funds and
accounts created and established hereunder in order to achieve greater investment income; provided
that the City shall separately account for the amounts so commingled. The amounts required to be
accounted for in each of the funds and accounts designated herein other than the Rebate Fund may
be deposited in a single bank account provided that adequate accounting procedures we maintained
aam)r,t'
Temp Reso #8249
May 21. 1998
Revised May 21. 1998
to reflect and control the restricted allocation of the amounts on deposit therein for the various
purposes of such funds and accounts as herein provided. The designation and establishment of funds
and accounts in and by this Resolution shall not be construed to require the establishment of any
completely independent funds and accounts but rather is intended solely to constitute an allocation
of Pledged Revenues and assets held under this Resolution for certain purposes and to establish such
certain priorities for application of remain revenues and assets as herein provided.
The value of investments shall be determined as follows:
(i) as to investments the bid and asked prices of which are published on a regular
basis in The Wall Street Journal (or, if not there. then in The New York
Times): the avenge of the bid and asked prices for such investment so
published on or most recently prior to such time of determination;
(ii) as to investments the bid and asked prices of which are not published on a
regular basis in The Wall Street Journal or The New York Times: the average
bid price at such time of determination for such investments by any such time
of determination for such investments by any two nationally recognized
government securities dealers (selected by the City in its absolute discretion)
at the time making a market in such investments or the bid price published
by a nationally recognized pricing service;
(iii) as to certficates of deposit and bankers acceptances: the face amount thereof,
plus accrued interest; and
(fv) as to any investment not specified above the value thereof established by
prior agreement between the City and each Municipal Bond Insurer.
(B) 159ui 9Z of Other Obligations P.y"nle Out iff Revenues, That the City will not issue any
other obligations, except upon the conditions and in the manner provided herein, payable from the
Pledged Revenues nor voluntarily create or must: to be created any debt, lien, pledge, assignment,
encumbrance or any other charge issued pursuant to this Resolution and the interest thereon, upon
any of the Pledged Revenues. Any other obligations issued by the City in addition to the Bonds
authorized by this Resolution or Additional Parity Bonds issued under the terms, restrictions and
conditions contained in this Resolution, shall contain an express statement that such obligations are
junior, inferior and subordinate in all respects to the Bonds issued pursuant to this Resolution as to
a lien on and source and security for payment from the Pledged Revenues and in all other respects-
(F) LUILIFUCC of That no Additional Parity Bonds, as in this subsection
Qefuued, payable on a parity with Bonds issued pursuant to this Resolution out of Pledged Revenues
Temp Reso #8249
May 21, 1998
Revised May 21. 1998
within the limitations of this subsection payable from the Pledged Revenues on a
parity with Bands originally authorized and issued pursuant to Ibis Resolution, Such
Bonds shall be deemed to have been issued pursuant to this Resolution the same as
the Bonds originally authorized and issued pursuant to this Resolution and all of the
covenants and other provisions of this Resolution (except as to details of such Bonds
evidencing such additional parity obligations inconsistent therewith), shall be for the
equal benefit, protection and security of the Holders of any Bonds originally
authorized and issued pursuant to this Resolution and the Holders of any Bonds
evidencing additional obligations subsequently issued within the limitations of and
in compliance with this subsection. All of starch Bonds, regardless of the time of their
issuance shall rank equally with respect to their lien on the Pledged Revenues and
their sources and security for payment therefrom without preference of any Bonds
over any other.
The term "Additional Parity Bonds" as used in this Resolution shall not be deemed
to include bonds, notes, certificates or other obligations subsequently issued under
the tents of this Resolution, the lien of which on the Pledged Revenues is subject to
the prior and superior lien on the Pledged Revenues of Bonds issued pursuant to this
Resolution, as provided in Section 3.4(E) of this Resolution, and the City shall not
issue any obligations whatsoever payable from the Pledged Revenues, which rank
equally as to lien and source and security for Jheir payment from such Pledged
Revenues with Bonds issued pursuant to this Resolution except in the manner and
under the conditions provided in this subsection.
(0) Books andgrcorQy. That the City will keep books and records of the funds and accounts
established hereby, which shall be separate and apart from all other books, records and accounts of
the City, in which complete andcorrect entries shall be tirade in accordance with generally accepted
accounting principles of all transaction relating to the funds and account established hereby, and any
Holder of a Bond issued pursuant to this Resolution and each Municipal Bond Insurer, shall have
the right at all reasonable times to inspect finds and accounts established hereby, and all records,
accounts and data of the City relating themm.
The City shall promptly after the close of each Fiscal Yew cause the books, records and
accounts of funds and accounts established under this Resolution, for such Fiscal Year, to be audited
by a qualified, recognized and nationally known independent firm of certified public accormtants and
shall file the report of Finance Director of the City, and shall mail upon request. and make available
generally, said report, or a reasonable summary thereof, to any Holder or Holden of Bonds issued
Pursuant to this Resolution.
Temp Reso #8249
May 21, 1998
Revised May 21, 1999
shall be issued after the issuance of any Bonds pursuant to this Resolution except upon the
conditions and in the manner herein provided.
No such Additional Parity Bonds shall be issued unless the following, among other
conditions, are complied with:
(i) The City must be current in all deposits into the various funds and accounts and all
payments theretofore required to have been deposited or made by it under the
Provisions of this Resolution and the City must be currently in compliance with the
covenants and provisions of this Resolution and any supplemental resolution
hereafter adopted for the issuance of Additional Parity Bonds; unless upon the
issuance of such Additional Parity Bonds the City will be in compliance with all such
covenants and provisions.
(if) The amoum of the Pledged Revenues during the immediate preceding Fiscal Year or
any twelve (12) consecutive months selected by the City of the twenty-four (24)
months immediately preceding the issuance of said Additional Parity Bonds. adjusted
as hereinafter provided, as certified by the City's Finance Director. will be equal to
one hundred twenty-five percent (125%) of the Maximum Annual Debt Service on
(1) the Bonds originally issued pursuant to this Resolution then Outstanding; (2) any
Additional Parity Bonds theretofore issued and then Outstanding, and (3) the
Additional Parity Bonds then proposed to be issued; provided that for the purpose of
determining the Maximum Annual Debt Service under this Section, the interest rate
on variable rate Bonds shall be the maximum interest rate provided therefor in the
proceedings authorizing such Bonds.
(iii) The Pledged Revenues calculated pursuant to the foregoing subparagraph (ii) may be
adjusted, at the option of the City, as follows'
(1) If the City, prior to the issuance of the proposed Additional Parity Bonds,
shall have increased any rates, fees or charges which constitute a portion of
the Pledged Revenues, the Pledged Revenues for the twelve (12) consecutive
months immediately preceding the issuance of said Additional Parity Bonds,
shall be adjusted to show the Pledged Revenues which would have been
derived fit such twelve (12) consecutive months as if such increased Pledgcd
Revenues had been in effect during all of such twelve (12) consecutive
months.
(iv) The term "Additional Parity Bonds" w used in this Resolution shall be deemed to
mean additional obligations evidenced by Bonds issued under the provisions and
Temp Reso 08249
May 21. 1998
Revised May 21. 1998
(M Remedies.
(i) Any Holder of Bonds issued under the provisions of this Resolution or anv trustee
acting for such Bondholders in the maturcr hereinafter provided. may either at law or
in equity, by suit, action, mandamus or other proceedings in any court of compctem
jurisdiction, protect and enforce any and all rights under the laws of the State. or
granted and contained in 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 City of by any officer thereof, including the collection of
Pledged Revenues.
(ii) The Holder or Holders of Bonds in an aggregate principal amount of not less than
twenty-five per cerium (25%) of Bonds issued under this Resolution 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. 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 Clerk of the City.
(iii) Anything in this Resolution to the contrary norwith amiding, upon the oceuureucc and
continuance of a breach of covenant or an event of default in the payment of principal
or interest on a Scries of Bonds, the related Municipal Bond Insurer, if any. shall be
entitled to control and direct the enforcement of all rights and remedies granted to the
Bondholders insured by the related Municipal Bond losurance Policy for the benefit
of the Holders of such Bonds under this Resolution.
(1) Enforcement flf Collections, That the City will diligrnnly colimt all Pledged Revenues, and
take all steps, action and proceedings for the collection of such Pledged Revenues which shall
become delinquent to the full extent permiried or authorized by applicable laws and regulations.
(J) Dischariglt and Satsfaction of Flo . The covenants, liens and pledges entered into, created
or imposed pursuant to this Resolution may be fully discharged•and satisfied with respect to the
Bonds in any one or more of the following ways:
(i) by paying the principal of and interest an Bonds when the same shall become duc and
payable; and
oxaanru of oauuni:i
and
Temp Reso 08249
May 21. 1998
Revised May 21, 1998
(6) by depositing in the Interest Account, the Principal Account and the Bond
Redemption Account and/or in such other accounts which are irrevocably pledged
to the payment of Bonds as the City may hereafter create and establish by resolution,
certain moneys which together with other moneys lawfully available therefor, if any,
shall be sufficient at the time of such deposit to pay when due the principal,
redemption premium, if any, and interest due and to become due on said Bonds on
or prior to the redemption date or maturity date thereof; or
(iii) by depositing in the Interest Account, the Principal Account and the Bond
Redemption Account and/or such other accounts which we irrevocably pledged to
the payment of Bonds as the City may hereafter create and establish by resolution,
moneys which together with other moneys lawfully available therefore when invested
in such Permitted Investments as are described in clause iii) of the definition of
"Permitted Investments" in Section LI ofthis Resolution which shall not be subject
to redemption prior to their maturity other than at the option of the Holder thereof,
will provide moneys which shall be sufficient to pay when due the principal,
redemption premium, if any, and interest due and to become due on said Bonds on
or prior to the redemption date or maturity date thereof,
(fv) Upon such payment or deposit in the amount and manner provided in this
Section 3.4(J) of this Resolution, Bonds shall be deemed to be paid and shall no
longer be deemed to be Outstanding for the purposes of this Resolution and all
liability of the City with respect to said Bonds shall cease, terminate and be
completely discharged and extinguished, and the Holders thereof shall he entitled for
payment solely out of the moneys or sectimics so deposited.
(v) Notwithstanding the foregoing all references to the discharge and satisfaction of
Bonds shall include the discharge and satisfaction of any Series of Bonds, any portion
of a Series of Bonds, any manuity or manuities of a Series of Bonds, any portion of
a maturity of a Series of Bonds or any combination thereof.
(vi) If any portion of the monevs deposited for the payment of the principal of and
redemption premium, if any, and interest on any portion of Bonds is not required for
such purpose, the City may use the amount of such excess free and clear of any tout,
lien, security interest, pledge or assignment securing said Bonds or otherwise existing
under this Resolution.
(vii) Notwithstanding anything to the contrary in this Resolution, in the event that the
principal and/or interest due on Bonds shall be paid by a Municipal Bond Insurer
pursuant to a Municipal Bond Insurance Policy, such Bonds shall remain Outstanding
os.W., 33
Temp Reso 98249
May 21, 1998
Revised May 21, 1998
This Resolution may be amended, changed, modified and altered without the consent of the
Holders of Bonds to (a) cure any ambiguity, correct or supplement any provision contained herein
which may be defective or inconsistent with any other provisions contained herein, (b) such changes
as may be necessary in order w adjust the rams hereof so as to facilitate the issuance of capital
appreciation Bonds, option Bonds and capital appreciation and income Bonds which changes will
not adversely affect the interest of such Holder of Bonds, and (c) provide for the issuance of Bonds
in coupon form if, in the opinion of Bond Counsel, such issuance will not affect the exclusion from
gross income of interest on the Bonds for federal income tax purposes.
With respect to a Series of Bonds insured by a Municipal Bond Insurance Policy, the related
Municipal Bond Insurer's consent shall be required in addition to Bondholder consent, when
required, for the following purposes: (1) execution and delivery of any supplemental resolution or
ordinance relating to the Series of Bonds so insured, iii) removal of the Paying Agent and selection
and appointment of any successor paving agent, and (iii) initiation or approval of any action not
described in (a) or (b) above which requires Bondholder consent,
SECTION 4.2 SEVERABUITYGE INVALID PROVISIONS. If any one or more
of the covenants, agreements or provisions of this Resolution should be held contrary to any express
Provision of law or contrary to the policy or 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 separate from the remaining covenants,
agreements or provisions, and shall in no way affect the validity of any of the other provisions of this
Resolution or of the Bonds issued hcmmdcr.
SECTION 4.3 SAf F,D'-$Q:LNM. The Bonds shall be issued and sold w one time
or from time to time and at such price or prices consistent with the provisions of the Act and the
requirements of this Resolution as the City shall hereafter determine by resolution.
SECTION 4.4 CONFLICTS. If any clause, section, other par or application of this
Resolution is held by any court of competent jurisdiction to be =constitutional or invalid, in pat
or application, it shall not affect the validity of the remaining portions or applications of this
Resolution.
Temp Reso 08249
hlay 21, 1998
Revised May 21, 1998
for all purposes, not be defeased or otherwise satisfied and not be considered paid by
the City, and the assignment and pledge of the Pledged Revenues and all covenants,
agreements and other obligations of the City to the Holders shall continue to exist
and shall run to the benefit of the Municipal Bond Insurer, and the Municipal Bond
Insurer shall be subrogated to the rights of such Holders.
(K)
CO." and the Muniejp-1 Ron j Insurance Pal As long w the City shall have a Reserve Account
Insurance Policy and/or a Reserve Account Letter of Credit on deposit in the Debt Service Reserve
Account, the City covenants that it will comply with the provisions of the Rcscrce Account
Insurance Policy and/or the reimbursement or similar agreement with respect to the Reserve Account
Letter of Credit.
As long as any Series of Bonds of the City we insured by a Municipal Bond Insurance policy
the City covenants to comply with the requirements and conditions imposed on the City by the issuer
of the Municipal Bond insurance Policy.
ARTICLE IV
MISCELLANEOUS PROVISIONS
SECTION 4.1 MODIFICATION OR AS(QQ,) . Except as otherwise provided
in the second paragraph hereof, no material modification of amendment of this Resolution, or of any
resolution amendatory hereof or supplemental hereto, may be made without the consent in writing
of(l) the Holders of fifty-one percent of more in principal amount of the Bonds then Outstanding
or (2) in case less than all of the Bonds then Outstanding arc affected by the modification or
amendment, the Holder of fifty-one percent or more in principal amount of the Bonds of each Series
so affected and Outstanding at the time such consent is given; provided, however, that no
modification or amendment shall permit a change in the maturity of such Bonds at a reduction in the
rate of interest thereon, or affecting the unconditional promise of the City to collect Pledged
Revenues, or to pay the principal of and interest on the Bonds, as the same mature or become due,
from the Pledged Revenues, or reduce the percentage of Holders of Bonds required above for such
modification or amendments, without the consent of the Holders of all the Bonds.
For purposes of this Resolution, to the extent any Series of Bonds is insured by a Municipal
Bond Insurance Policy and such Series of Bonds is then rated in as high a rating category as the
rating category in which such Series of Bonds was rated at the time of initial issuance and delivery
thereof, by either Standard & Poor's or Moody's, then the consent of the issuer of such Municipal
Bond Insurance Policy shall constitute the consent of the Holders of such Series.
osoen91.1 - 34
Temp Reso #8249
May 21, 1998
Revised May 21, 1998
SECTION 4.5 , This Resolution shall take effect upon
its passage in the manner provided by law.
PASSED and ADOPTED this 27th day of May, 1998
Joe Schreiber, Mavor
ATTEST:
Carol Gold, CMCIAAE
City Clerk
I HEREBY CERTIFY that I have
approved this RESOLUTION as to form.
Mitchell S. Kraft
City Attorney
RECORD OF COMMISSION VOTE
MAYOR SCHREIRER
DIST I:_LOM1,I
DIST 2:
DIST 3:_-COMM SVI-TANOF_
DIST4; (SL41tYLAOBEIj';,S
usw,ro�.� 35
MO)", 36
RESOLUTION No. 99-
A RESOLUTION OF THE CITY OF TAMARAC, FLORIDA AMENDING AND
FIXING CERTAIN TERMS AND DETAILS
SUPPLEMENTING RESOLUTION NO.98-156 RELATING TO THE CITY'S REV ENLTE BONDS;
OF SUCH BONDS; AUTHORIZING A
NEGOTIATED SALE OF SUCH BONDS PURSUANT TO A BOND PURCHASE CONTRACT;
APPROVING THE FORM OF AND AUTHORIZWG THE DISTRIBUTION OF A PRELIMINARY
OFFICIAL STATEMENT AND AUTHORIZING THE EXECUTION AND DELIVERY OF A
FINAL OFFICIAL STATEMENT; SELECTING A PAYING AGENT AND REGISTRAR AND
AUTHORIZING THE EXECUTION AND DELIVERY OF AGREEMENTS BETWEEN THE CITY
AND THE BOND REGISTRAR AND PAYING AGENT; RATIFYING THE SELECTION OF
FINANCIAL GUARANTY INSURANCE COMPANY AS BOND INSURER AND PROVIDING
FOR CERTAIN MATTERS IN CONNECTION THEREWITH; AUTHORIZING THE F-XECL"I"ION
AND DELIVERY OF A CONTINUING DISCLOSURE CERTIFICATE; AUFHORIZING OTHER
REQUIRED ACTIONS; PROVIDING FOR SEVERABILITY AND AN EFFECTIVE DATE,
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF TAMARAC.
FLORIDA:
SECTION I. AUTHORITY FOR THIS RESOLUTION, The City of Tamarac, Florida (the
"City") is authorized to adopt this resolution (the "Resolution") under the authority granted by the
Provisions of Chapter 166, Florida Statutes, as amended, and other applicable provisions of law. In
consideration of the Acceptance of the Series 1999 Bonds (herein defined) by those who shall own the
same from time to time, this Resolution shall be deemed to be and shall cansrimn a contract between
the City and such Bondholders.
SECTION 2, FINDINGS. It is hereby found and determined that:
A. Pursuant to Resolution No. 98-156 adopted by the City Commission on
MAY 27, 1998 (As supplemented and Amended from time [o time, the "Bond Rcsol Coo ). the City
timeauthto i the issuance of not to exceed E15,p00,000 of it revenue bonds in one or more series from
time to time.
D. All of the provisions, covenants, pledges and conditions in the Bond Resolution
shall be applicable to the Series 1999 Bonds herein authorized and such Series 1999 Bonds shall
constitute "Bonds" within the meaning of the Bond Resolution.
E. The Bond Resolution provides that all Bonds shall be dated, shall mature on
such dales and in such amounts, shall bear such rates of interest shall be payable in such places and
shall be subject to such redemption provisions, among other matters. As shall be determined by
resolution adopted by the City and it is now appropriate to determine such terms and details.
F. All capitalized terms used herein and not otherwise defined herein shall have
C.e meaning ascribed thereto in the Bond Resolution, unless otherwise provided or unless the context
otherwise clearly requires. To the extent necessary to effectuate the terms and conditions hereof, the
Bond Resolution is hereby incorporated herein by reference.
SECTION 3. DESCRIPTION OF THE SERIES 1999 BONDS. There is authorized to be
issued a $cries of Bonds designated As "City of Tamara, Florida Sales Tax Revenue Bonds, Series
1999" which shall constitute a portion of the up to 515,000.000 "Series 1998 Bonds" authorized to be
issued pursuant to the Bond Resolution. In addition to the terms contained in the Bond Resolution,
the Series 1999 Bonds (a) shall be issued as Serial Bonds or Trnn Bonds or a combination thereof.
in denominations of 55000 or any integral multiple thereof, (b) shall have a final maturity date of not
exceeding 20 years from the date of issuance, (c) shall bear interest at a hue interest cost not exceeding
5.75 % per annum. (d) if redeemable, shall be redeemable at redemption prices not exceeding 102%
of the principal amount thereof, and (e) shall be dated and shall have such other characteristics As shall
be act forth in a Bond Purchase Contract between the City and the Underwriter in substantially the
form attached hereto as Exhibit -A (the "Bond Purchase Contract")- The Mayor or Vice Mayor is
authorized to approve the final terms of the Series 1999 Bonds, which terms shall be consistent with
the parameters set forth above without any further authorization of the City Commission, and such
terms shall be set forth in the Bond Purchase Contract.
A book -entry -only system of registration is hereby authorized for the Series 1999 Bonds. So
long As the City shall maintain a book-entryonly system with respect to the Series 1999 Bonds, the
following provisions shall apply:
B. In furtherance thereof and urs The Scries 1999 Bonds shall initially be issued in the name of Cede & Co. As nominee for the
p rant to the Bond Resolution, the City deems it Depository Trust Company ("DTC"), which will act As securities depository for the Series 1999 Bonds
th its best interest to issue the first serin of such revenue bonds in the aggregate principal amount of and so long as the Series 1999 Bonds are held in book-entryonly form, Cede & Co. shall be
upn Resolu,000 tion,
"Series 1999 Bonds") in antler to finance portions of the pr°jcct identified in the considered the registered owner for all purposes hereof and of the Bond Resolution- On original issue,
Bond Resolution.
the Series 1999 Bonds shall be deposited with DTC, which shall be responsible for maintaining a
C. Pursuant to Resolution No, 98• I57 adapted by the City Commission on book -only system for recording the ownership interests of its participants ("DTC Participants"),
May 27, 1998, First Union Capital Markets Corp. (the "Underwriter" was and other institutions who clear through or maintain a custodial relationship with DTC Participants
underwriter for the Series 1999 Bonds. ) selected to serve as ("Indirect Participants"). The DTC Participants and Indirect Participators will be responsible for
maintaining records with respect to the beneficial ownership, interests of individual purchasers of the
Series 1999 Bonds ("Beneficial Owners"),
oAu:arr -
axiswra 2
Principal and interest prior to and at maturity shall be payable directly to Code & Co. in care of
DTC. Disbursal of such amounts to DTC Participants shall be the responsibility of DTC. Payments
to Indirect Participants shall be the responsibility of DTC Participants, and payments by DTC
Participants and Indirect Participants to Beneficial Owners shall be the responsibility of DTC
participants and Indirect Participants and not of DTC, the Paying Agent or the City.
The Series 1999 Bonds shall initially be issued in the form of one fully registered bond for each
maturity, Individuals may purchase beneficial interests in the amount of 55,000 or integral multiples
thereof in book-entryonly fore, without certificated Series 1999 Bonds, through the DTC participants
and Indirect Participants.
DURING THE PERIOD FOR WHICH CEDE & CO. IS REGISTERED OWNER OF THE
Series 1999 Bonds, ANY NOTICE TO BE PROVIDED TO ANY REGISTERED OWNER WILL
BE PROVIDED TO CEDE & CO. DTC SHALL BE RESPONSIBLE FOR NOTICE TO DTC
PARTICIPANTS, AND OTC PARTICIPANTS SHALL BE RESPONSIBLE FOR NOTICE TO
INDIRECT PARTICIPANTS AND DTC. PARTICIPANTS AND INDIRECT PARTICIPANTS
SHALL BE RESPONSIBLE FOR NOTICE TO BENEFICIAL OWNERS,
The City has entered into a customary letter of representations with DTC providing for such a
book-cmryronly system (the "DTC Agreement"). Such agreement may be terminated at any time by
either DTC or the City. In Elie event of such termination, the City shall select another securities
depository or discontinue such book•entyortiy system. If the City does not replace DTC, the
Registrar (as hereinafter defined) will register and deliver to the Beneficial Owners replacement Series
1999 Bonds in the forth of fully registered Series 1999 Bonds in denominations of S5,000 or integral
multiples thereof, in accordance with instructions from Cede At Co.
SECTION 4. REDEMPTION PROVISIONS. The Series 1999 Bonds shall be subject to
redemption in such amounts and at such times As set forth in the final forth of he Bond Purchase
Contract.
At least thirty (30) djrys before the redemption date, a notice of any such redemption, either in
whole or in part, shall be mailed, first class mail, postage prepaid, to all registered owners of Series
1999 Bonds to be redeemed at their addresses as they appear on the registration books. To supplement
such notice to the registered owners, the notice of redemption may also be mailed by overnight mail
to at least two national depositories and one national wire smite used to distribute information
relating to municipal bonds, at least thirty-five (35) days prior to the redemption date. Failure to mail
any redemption notice to Any Bondhoddec or any depositories and wire services, or any defect in any
notice so mailed, shall not affect the validity of the proceedings for the redemption of the Series 1999
Bonds of any other Holder. Each such notice shall set forth the date fixed for redemption, the
redemption price to be paid and, if less than all of the Series 1999 Bonds then outstanding shall be
called for redemption, the numbers of such Series 19" Bonds. Each notice of redemption mailed to
a registered owner of a Bond to be redeemed shall, if less than the entire principal amount thereof is
to be redeemed, also state the principal Amount thereof to be redeemed and that such Bond must be
surrendered to the Bond Registrar in exchange for the payment of the principal amount thereof to be
redeemed and the issuance of a new Series 1999 Bond or Series 1999 Bonds equaling in principal
amount that portion of the principal sum not to be redeemed of the Series 1999 Bonds to be
surrendered. Notice having been given in the manner provided above, the Series 1999 Bonds or
portions of Series 1999 Bonds so called for redemption shall, on the redemption date designated in
such notice, become and be due and payable at the redemption price provided for redemption for such
Series 1999 Bonds or portions of Series 1999 Bonds on such date. On the date so designated for
redemption, interest on the Series 1999 Bonds or portions of Series 19" Bonds so called for
redemption shall cease in accrue, such Series 1999 Bonds and portions of Series 1999 Bonds shall
cease to be entitled to any lien, benefit or security under the Bond Resolution and shall be deemed paid
under the Bond Resolution, and the registered owners of such Series 1999 Bonds or portions of Scrics
1999 Bonds shall have no rights except to receive payment of the redemption price.
Any notice of redemption shall explicitly state that the proposed redemption is conditioned on
there being on deposit in the Bond Redemption Account on the redemption date sufficient money to
pay the full redemption price of the Series 1999 Bonds to be redeemed unless the full redemption price
of the Scrics 1999 Bonds to be redeemed is on deposit in the Bond Redemption Account on the date
such notice is sent.
SECTION 5. NEGOTIATED SALE OF THE SERIES 1999 BONDS. It is hereby found,
ascertained. determined and declared by the City that a negotiated sale of the Series 1999 Bonds is in
the best interest of the City in order to more effectively control the timing of the issuance of the Bonds
and do to the size of the issue and the fact drat the City has not previously issued revenue bonds in the
public markets except for those payable from its water and sewer system. The negotiated sale of the
Series 1999 Bonds to First Union Capital Markets Corp. (the "Underwriter") pursuant to the terms of
a Bond Purchase Contract substantially in tlu form attached herein as Exhibit A is hereby authorized
and approved and the Mayor or Vice Mayor is hereby authorized and directed to execute such Bond
Purchase Convict when completed and to deliver the same to the Underwriter. The execution and
delivery of the Bond Purchase Contract by the Mayor or Vice -Mayor of the City shall constitute
conclusive evidence of the approval thereof.
SECTION 6. PRELIMINARY AND FINAL OFFICIAL. STATEMENTS. The Preliminary
Official Statement relating to the Series 1999 Bonds, in substantially the form submitted at this
meeting and attached hereto as Exhibit C, is hereby approved with respect to the information therein
contained. The distribution and use of the Preliminary Official Statement in connection with the
public offering for sale of the Series 1999 Bonds is hereby authorized and ratified. The execution by
the Director of Finance of the City of a certificate deeming the Preliminary Official Statement final
within the meaning of Rule 15c2.12 of the Securities Exchange Act of 1934 is hereby authorized. The
Director of Finance is hereby authorized to have prepared and the Mayor or Vice -Mayor and the
Director of Finance of the City are hereby authorized to execute a final Official Statement. and, upon
such execution, to deliver the same to the Underwriter for use by it in connection with the sale and
distribution of the Series 1999 Bonds. The Official Statement shall be substantially in the forth of the
Preliminary Official Statement. with such changes as shall be Approved by the Mayor or Vice -Mayor
oAiwwr:a J osuse.7,1
or Director of Finance as necessary to confirm the details of the Series 1999 Bonds and such other
insertions, modifications and changes as rosy be approved by the Vice -Mayor or Director of Finance
of the City. The execution and delivery of the Official Statement by the Mayor or Vice -Mayor and
Director of Finance of the City shall constitute conclusive evidence of the approval thereof The City
hereby authorizes the Official Statement and the information contained therein to be used in
connection with the offering and salt of the Series 1999 Bonds,
SECTION 7. APPOW' N= OF BOND REGISTRAR AND PAYING AGENT, The Bank
Of New York is hereby designated as the Paying Agent and Registrar for the Series 1999 Bonds.
Simultaneously with the delivery of the Series 1999 Bonds to the purchaser thereof, the City shall
enter into a Registrar and Paying Agent Agreement in substantially the form attached hereto as
Esh&LQ. The Mayor or Vice -Mayor of the City are hereby authorized w enter into any agreements
with such Bond Registrar and Paying Agent which may be necessary to reflect the obligation of such
Bond Registrar and Paying Agent to accept and perform the respective duties imposed upon each, and
to effectuate the transactions contemplated, by this Resolution and the Bond Resolution.
SECTION S. INSURANCE MATTERS. The execution by the City Manager of a
commitment from Financial Guaranty Insurance Company, a New York stock insurance company (the
"Municipal Bond Insurer") to issue its Municipal Bond New Issue Insurance Policy (the "Policy") to
insure the payment when due on the principal of and interest on the Series 1999 Bonds as provided
in the Policy is hereby ratified and approved. The City hereby authorizes the Series 1999 Bonds to
be insured by the Policy to be issued by the Municipal Bond Insurer concurrently with the delivery
of the Series 1999 Bonds and further authorizes the application of proceeds of the Series 1999 Bonds
to payment of the premium for the Policy, While the Series 1999 Bonds remain insured by the Policy
and the Municipal Bond Insurer is not in default thereunder, the following shall apply to the Series
1999 Bonds, notwithstanding anything to the contrary set forth in the Bond Resolution:
A. General.
(i) Any provision of the Bond Resolution or this Resolution expressly recognizing
or granting rights in or to the Municipal Bond Insurer may not be amended in any manner
which affects the rights of the Municipal Bond Insurer thereunder or hereunder without the
prior written consent of the Municipal Bond Insurer.
(ii) The consent of the Municipal Bond Insurer shall be mquircd in addition to arty
required consent of the holders of the Bonds for the following purposes: (a) execution and
delivery of any supplemental resolution or any amendment, change or modification to the
Bond Resolution or this Resolution; (b) removal of the Paying Agent and selection and
appointment of anv successor paying agent; and (c) limitation or approval of any action not
described in (a) or (b) which require consent of the holders of the Bonds. Any rating agency
rating the Series 1999 Bonds must receive notice of each amendment to the Bond Resolution
or this Resolution at least 15 days in advance of its execution or adoption. The Municipal
under an interest rate swap so long m the City complies with the Swap Provider Guidelines
as set forth in PlIllblt II hereto.
B. Notices and information to be given to the Municipal Bond Insurer.
(i) The City shall furnish to the Municipal Bond Insurer
(a) Within 120 days after the end of each Fiscal Year, the budeet for the
succeeding year, annual audited financial statements, a statement of the amount on
deposit in the Debt Service Revenue Fund as of the last valuation_ and, if not presemed
in the audited financial statements, a statement of the amount of Pledged Revenues
received during such Fiscal Year;
(b) The official statement or other disclosure document, if any, prepared
in connection with the issuance of any debt, whether or not on parity with the Series
1999 Bonds;
(c) Notice of any drawing upon or deficiency due to market tlucmations
in the amount, if any, on deposit in the Debt Service Reserve Account;
(d) Notice of the redemption, other than mandatory sinking fund
redemption, of any Series 1999 Bonds, or any advanced refunding of Series 1999
Bonds, specifying the principal amount, maturities and CUSIP numbers thereof,
(e) For all purposes of this Resolution and the Bond Resolution, the
address for sending notices to the Municipal Bond Insurer and the Fiscal Agent (as
defined below) are respectively as follows: Financial Guaranty Insurance Company,
115 Broadway, New York, New York 10006, Attention: Risk Management and State
Street Bank and Trust Company, N,A., 61 Broadway. New York, New York 10006,
Attention! Corporate Trust Department; and
(f) Such additional information it may reasonably request.
(it) The City shall notify El c Municipal Bond Insurer of any failure of the City to
provide relevant notices or certificates required under the Bond Resolution or this resolution.
C, . Default -Related Provisions.
(i) Upon a payment default, the City shall, at the direction of the Municipal Bond
Insurer, apply available funds held in the Construction Fund to pay the principal of or interest
on the Series 1999 Bonds.
Band Insurer shall be provided with a full transcript of all proceedings relating to such
amendment or supplement.
(iii) Any reorganization or liquidation plan with respect to the City must be
acceptable to the Municipal Bond Insurer. In the event of any reorganization or liquidation,
the Municipal Bond Insurer shall have the right to vote on behalf of all holders of the Series
1999 Bonds.
(iv) The City will permit the Municipal Bond Insurer to discuss the affairs, finances
and accounts of the City or any information Municipal Bond Insurer may reasonably request
regarding the security for the Bonds with appropriate officers of the City. The City will permit
the Municipal Bond Insurer to have access to make copies of all books and records relating
to the Bonds at any reasonable time,
(v) The Municipal Bond Insurer shall have the right to direct an accounting of the
Pledged Revenues at the City's expense, and the City's failure to comply with such direction
within thirty (30) days after receipt of written notice of the direction from the Municipal Bond
Insurer shall be deemed a default under the Bond Resolution or this Resolution; provided,
however, that if compliance cannot occur within such period. then such period will be
extended as long as compliance is begun within such period and diligently pursued, but only
if such extension would not materially adversely affect the interests of any registered owner
of the Series 1999 Bonds.
(vi) No resignation or removal of the Paying Agent or Registrar shall be effective
until a successor has been appointed and has accepted the duties of Paying Agent or Regisbar
(as applicable). The Municipal Bond Insurer shall be provided with written notice of the
resignation or removal of the Paying Agent or Registrar and the appointment of any successor
thereto.
(vii) Except as provided in subsection (viii) below, for purposes of calculating the
Reserve Requirement, Additional Parity Bonds bearing interest at a variable rate shall be
assumed to bear interest at (A) if interest on the indebtedness is excludable from gross umeomc
under the applicable provisions of the Internal Revenue Code, the most recently published
Bond Buyer "Revenue Bond Index" (or comparable index if no longer published) plus $0 basis
points, or (B) if interest is not so excludable, the interest rate on direct U.S. Treasury
Obligations with comparable maturities plus 50 basis points. For all other purposes, including
the additional bonds tm variable rate indebtedness shall be assumed to bear interest at the
maximum rate permitted under the goveming documents.
(viii) For purposes of calculating the Reserve Requirement and compliance with
other covcmants set forth in the Bond Resolution, the interest rate on Additional Parity Bonds
bearing interest at a variable rate may be assumed to be the synthetic fixed rate established
60 Payments made under the Policy shall be disregarded when determining
whether a payment default has occurred or whether a payment on the Series 1999 Bonds has
been made.
(iii) Any acceleration of the Bonds or any annulment thereof shall be subject to the
prior wrinen consent of the Municipal Bond Insurer. ,
(iv) The Paying Agent and the City shall provide the Municipal Bond Insurer
immediate notice of any payment default and notice of any other defa.dt known to the Paying
Agent or the Citv (as applicable) within 30 days of knowledge thereof.
(v) For purposes of all provisions in the Bond Resolution and in this Resolution
relating to events of default and remedies, except the giving of notice of dcfault to
Bondholders, the Municipal Bond Insurer shall he deemed to be the sole holder of Series 19W
Bonds.
(vi) The Municipal Bond Insurer is entitled to (A) notify the City, the Paying Agent
or any applicable receiver of an event of default, and (B) request a receiver to intervene in
judicial proceedings that affect the Series 19,99 Bonds or the security therefor. The Paving
Agent or receiver is required to accept notice of default from the Municipal Bond Insurer.
D. Payment Procedures Pursuant to the Policy. The City and Paying Agent shall comply
with the following:
(i) If. on the business day preceding any interest payment date for the Series 19"
Bonds there is nor on deposit with the Paying Agent sufficient moneys available to pay all
principal of and interest on the Series 1999 Bonds due on such date, the Paving Agent shall
immediately norm• the Municipal Bond Insurer and Sure Street Bank and Trust Company.
N.A., New York, New York or its successor as its Fiscal Agent (the "Fiscal Agent") of the
amount of such deficiency. If by said interest payment date, the Issuer has not provided the
amount of such deficiency, the Paying Agent shall simultaneously make available to the
Municipal Bond Insurer and to the Fiscal Agent the registration books for the Series 1999
Bonds maintained by the Paying Agent. In addition:
(a) The Paying Agent shall pmvidc the Municipal Bond Insurer with a list
of the Bondholders entitled to receive principal or interest payments from the
Municipal Bond Insurer under the terms of the Bond Insurance Policy and shall make
arrangements for the Municipal Bond Insurer and its Fiscal Agent (1) to mail checks
or drafts to Bondholders entitled to receive full or partial interest payments from the
Municipal Bond Insurer and (2) to pay principal of the Scrics 1999 Bonds surrendered
to the Fiscal Agent by the Bondholders entitled to receive full or partial principal
Payments from the Municipal Bond Insurer; and
(b) The Paying Agent shall, at the time it makes the registration books
available to the Municipal Bond Insurer pursuant to (A) above. notify Bondholders
entitled to receive the payment of principal of or interest on the Series 1999 Bonds
from the Municipal Bond Insurer (1) as to the fact of such entitlement, (?) that the
Municipal Bond Insurer will remit to them all or part of the interest payments coming
due subject to the terms of the Bond Insurance Policy. (3) that, except as provided in
paragraph (ii) below, in the event that any Bondholder is entitled to receive full
payment of principal from the Municipal Bond Insurer, such Bondholder must tender
his Bond with the instrument of transfer in the form providedon the Bond executed
in the name of the Municipal Bond Insurer, and (4) that, except a9 provided in
paragraph (ii) below, in the event that such Bondholder is entitled to receive partial
payment of principal from the Municipal Bond Insurer. such Bondholder must tender
his Bond for payment first to the Paying Agent, which shall note on such Bond that
portion of principal paid by the Paying Agent. and then, with an acceptable (am of
assignment executed in the name of the Municipal Bond Insurer, to the Fiscal Agent.
which will then pay the unpaid portion of principal to the Bondholder subject to the
terms of the Bond Insurance Policy.
(ii) In the event that the Paying Agent has notice that any payment of principal of
or interest on a Bond has been recovered from a Bondholder pursuant to the United States
Bankruptcy Code by a trustee in bankruptcy in accordance with the final, nonappealable order
of a court having competent jurisdiction, the Paying Agent shall. at the time it provides notice
to the Municipal Bond Insurer, notify all Bondholders that in the event that any Bondholder's
payment is so recovered, such Bondholder will be entitled to payment from the Municipal
Bond Insurer to the extent of such recovery, and the Paying Agent shall furnish to the
Municipal Bond Insurer its records evidencing the payments of principal of and interest on the
Series 1999 Bonds which have been made by the Paying Agent and subscquendy recovered
from Bondholders, and the date on which such payments were made.
(iii) The Municipal Bond Insurer shall, to the extent it snakes payment of principal
of or interest on the Series 1999 Bonds, become subrogated to the rights of the recipients of
such payments in accordance with the terns of the Bond Insurance Policy and, to evidence
such subrogation, (A) in the case of subrogation u to claims for past due interest, the Paying
Agent shall note the Municipal Bond Insurer's rights as subrogee on the registration books
maintained by the Paying Agent upon receipt from the Municipal Bond Insurer of proof of the
payment of interest thereon to the Bondholders of such Series 19" Bonds and (B) in the case
of subrogation u to claims for past due principal, the Paying Agent shall note the Municipal
Bond Insurer's rights as subrogee on the registration books for the Series 1999 Bonds
maintained by the Paying Agent upon receipt of proof of the payment of principal thereof to
the Bondholders of such Series 1999 Bonds. Notwithstanding anything in this Resolution.
the Bond Resolution or the Series 1999 Bonds to the contrary, the Paying Agent shall make
payment of such past due interest and past due principal directly to the Municipal Bond
Insurer to the extent that the Municipal Bond Insurer is a subrogee with respect thereto.
M1~1,i
("GNMAs"); guaranteed participation certificates and guaranteed pool certificates of the Small
Business Administration; debt obligations and letter of credit -backed issues of the Student
Loan Marketing Association; local authority bonds of the U.S. Department of Housing &
Urban Development; guaranteed Tide XI financings of the U.S, Maritime Administration;
guaranteed transit bonds of the Washington Metropolitan Area Transit Authority; Resolution
Funding Corporation securities.
(iii) Direct obligations of any state of the United States of America or any
subdivision or agency thereof whose unsecured- uninsured and unguaranteed general
obligation debt is rated, at the time of purchase, "A" or better by Moody's Investors Service
and "A" or better by Standard & Poor's Corporation, or any obligation fully and
unconditionally guaranteed by any state, subdivision or agency whose unsecured, uninsured
and unguarantecd general obligation debt is rated. at the time of purchase, "A" or better by
Moody's Investors Service and "A" or better by Standard & Poor's Corporation.
(iv) Commercial paper (having original maturities afnot more than 270 days) rated -
at the time of purchase, T-1" by Moody's Investors Service and "A-i" or better by Standard
& Poor's Corporation.
(v) Federal funds, unsecured cenificams of deposit- time deposits or bankers
acceptances (in each case having maturities of not more Than 365 days) of any domestic bank
including a branch office of a foreign bank which branch office is located in the United States.
provided legal opinions we received to the effect Thar full and timely payment of such deposit
or similar obligation is enforceable against the principal office or any branch of such bank -
which, at the time of purchase, has a short-term "Bank Deposa" rating of"P-1" by Moody's
Investors Service and a "Short -Term CD" rating of "A -I" or better by Standard & Poor's
Corporation.
(vi) Deposits of any bank or savings and loan association which has combined
capital. surplus and undivided profits of not less than E3 million, provided such deposits are
continuously and fully insured by the Bank Insurance Fund or the Savings Association
Insurance Fund of the Federal Deposit Insurance Corporation.
(vii) Investments in money-market fundsramd"AAArn"or"AAAm-G"by Standard
& Poor's Corporation.
(viii) Rcpurehaseagreements collateralized byDirect Obligations,GNMAs.FNMAs
or FHLMCs with any registered broker/dealer subject to the Securities Investors' Protection
Corporation jurisdiction or any commercial bank insured by the FDIC, if such broker/dealer
or bank has an uninsured, unsecured and ungumaniecd obligation rated T- I" or "AY or better
by Moody's Investors Service, and "A -I" or "A or better by Standard & Poor's Corporation,
provided:
SECTION9. DEBT SERVICE RESERVE. ACCOUNT POLICY. The execution by the City
Manager of a commitment from Financial Guaranty Insurance Company, a Ncw York stock insutartce
company (the "Municipal Bond Insurer") to issue its municipal bond debt service reserve policy
("Reserve Policy-1 to satisfy the reserve requirement with respect to the Series 1999 Bonds is hereby
ratified and approved, and the use of proceeds of the Series 1999 Bonds to pay the premium for the
Reserve Policy is hereby authorized and approved. The Mayor or Vice Mayor is authorized to execute
and deliver a Debt Service Reserve Fund Policy Agreement (the "Agreement") between the City and
the Municipal Bond Insurer in substantially the form attached as EShihil E hereto with such changes
as approved by the Mayor or Vice Mayor, such approval to be conclusively presumed by execution
thereof The terms of the Debt Scrvice Reserve Fund Policy Agreement are hereby incorporated by
reference and made a pan hereof. While the Reserve Policy is in effect and the Municipal Bond
Insurer is not in default thereunder, the following provisions (in addition to those set forth in the
Agreement) shall apply notwithstanding anything to the contrary set fords in the Bond Resolution:
A. The Paying Agent shall be the custodian of the Reserve Policy and act as fiduciary for
the Bondholders in respect thereof.
B. The Municipal Bond Insurance Policy shall at all times he issued by Financial
Guaranty Insurance Company as security for payment of principal and interest on the Series 1999
Bonds.
SECTION 10. AMENDMENT TOSECTION 1.1 OF BOND RESOLUTION. The definition
of "Permitted Investments" in Section 1.1 of the Bond Resolution is hereby amended to read as
follows:
"'Permitted Investments' shall mean, to the extent permitted by law, and to the extent consistent
with the invcstmant policies of the City in effect from time to time:
(i) Direct obligations of the United States of America and securities fully and
unconditionally guaranteed as to the timely payment of principal and interest by the United
States of America, provided- that the full faith and credit of the United States of America most
he pledged To any such direct obligation or guarantee ("Direct Obligations").
(ii) Direct obligations and fully guaranteed certificates of beneficial interest of the
Expon-Import Bank of the United States; consolidated debt obligations and letter of credit -
backed issues of the Federal Home Loan Banks; participation certificates and senior debt
obligations of the Federal Home Loan Mortgage Corporation ("FHLMCs"); debentures of the
Federal Housing Administration; mortgage -backed securities (except stripped mortgage
securities which arc valued greater than par on the portion of unpaid principal) and senior debt
obligations of the Federal National Mortgage Association ("FNMAs"); participation
certificates of the Gcneml Services Administration; guaranteed mortgage -backed securities
and guaranteed participation certificates of the Government National Mortgage Association
(a) A master repurchase agreement or specific wrinen repurchase
agreement governs the transaction;
(b) The securities arc held free and clear of any lien by the Trustee or an
independent third party acting solely as agent ("Agent") for the Trustee, and such third
party is (i) a Federal Reservc Bank. (4) a bank which is a member of the Federal
Deposit Insurance Cbrporation and which has combined capital. surplus and undivided
profits afoot less than S50 million or (iii) a bank approved in wTiting for such purpose
by Financial Guaranty Insurance Company. and the Trustee shall have received written
confirmation from such third party that it holds such securities, free and clear of any
Iicn, as agent for the Trsme;
(c) A perfected first securry interest under the Uniform Commercial Code.
or book miry procedures prescribed at 31 C.F.R. 106.1 er seq. or 31 C.F.R. 350.0 et
seq. in such securities is created for the benefit of the Trustee;
(d) The repurchase agreement has a term of 180 days or less, and the
Trustee or the Agent will value the collateral securities no less frequently than weekly
and will liquidate the collateral securities if any deficiency in the required collateral
percentage is not restored within two business days of such valuation; and
(c) The fair market value of the securities in relation to the amount of the
repurchase obligation, including principal and interest, is equal to at least 10 %,
(ix) Investment agreements, the issuer, t'o= and substance of which are specifically
approved by the Bond Insurer."
SECTION 11. AMENDMENT OF SECTION 3.4 OF BOND RESOLUTION. Section 3.4
of the Bond Resolution is hereby amended as follows;
(1) The terms "Pledged Revenue Fund" and "Revenue Fund" as defined in
Section 3.4(B) and m used in the Bond Resolution are amended to read "Pledged Revenue
Account" and "Revenue Account," respectively.
(ii) All references in Section 3.4(C) to "the fifteenth (15th) day" are amended to
read "the twenty-fifth (25th) day".
(iii) Section 3.4(CXiii) of the Bond Resolution is amended by adding the following
paragraph at the end of such Section:
"If a disbursement is made from a Reservc Account Insurance Policy or a Reserve
Account Letter of Credit (each a "Reserve Account Instrument"), the City shall reinstate the
maximum limits of such Reserve Account Instrument immediately following such disbursement
oaiwwt:i
from moneys paid into the Debt Service Reserve Account in accordance with the foregoing
provisions of this Section 3.4(C)(iii), In addition, and in the same manner, the City shall
reimburse the issuer of the Reserve Account Instrument for all reasonable expenses incurred by
such issuer in connection with the draw upon the Reserve Account Insmunent, together with
interest on unpaid amounts as set forth in the Reserve Account Instrument or a related
agreement. The obligations of the Citv to make payments to the issuer of any Reserve Account
Instrument shall not be a general obligation of the City but shall be payable from Pledged
Revenues in the manner provided herein."
SECTION 12. INTERESTED PARTIES. Nothing in the Bond Resolution or this Resolution
expressed or implied is intended or shall be construed to confer upon, or ro give to any person or
entity, other than the City, the Municipal Bond Insurer, the Paying Agent, and the registered owners
of the Series 1999 Bonds, any right, remedy or claim under or by reason of this Resolution or any
covenants, condition or stipulation thereof, and all covenants, stipulations. promises and agreements
in this Resolution contained by and on behalf of the City shall be for the sole and exclusive benetir
of the City, the Municipal Bond Insurer. the Paving Agent, and the registered owners of the Series
1999 Bonds.
SECTION 13. EVENTS OF DEFAULT. The following events shall each constitute an event
of default under the Bond Resolution and the Series 1999 Bonds?
A failure to pay the principal of or interest on the Series 1999 Bonds when due
B. the dissolution or liquidation of the City, or the filing by the City of a voluntary
petition in bankruptcy, or the commission by the City of anv act of bankruptcy, or adjudication of the
City as a bankrupt, or assignment by the City for the benefit of its creditors, or appointment of a
receiver for the City, or the entry by the City into an agreement of composition with its creditors, or
the approval by a court of competentjurisdiction of a petition applicable to the City in any proceeding
for its reorganization instinued 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 may hereafter be enured;
C. the City shall default in the due and punctual performance of my of the other
covenants, conditions, agreements and provisions contained in the Series 1999 Bonds or in this
Resolution or the Bond Resolution on the par of the City to be performed, and such default shall
continue for a period of thirty (30) days after written notice from the Paying Agent, the Municipal
Bond Insurer any holder of Bonds.
SECTION 14. CONTINUING DISCLOSURE. The City hereby covenants and agrees that
it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Such
Continuing Disclosure Certificate shall be in substantially the fonts attached hereto as E41IL E to be
executed by the City and dated the date of delivery of the Series 1999 Bonds. Notwithstanding any
other provision of this Resolution, failure of the City to comply with the Continuing Disclosure
Certificate will not be considered an event of default: however any Bondholder may take such actions
as~., n z
PASSED AND ADOPTED the - day of , 1999.
CITY OF T.-MARAC, FLORIDA
Joe Schreiber, Mayor
ATTEST
Carol Gold, CMC/AAE
City Clerk
1 HEREBY CERTIFY that 1 have
approved this Resolution as to form
Mitchell S. Kraft
City Attorney
oaiwer:.�
as may be necessary and appropriate, including seeking mandate or specific performance by court
order, to cause the City to comply with its obligations under this Section, Bondholders shall not be
entitled to any damages for failure of the City To comply with the W. of the Continuing Disclosure
Certificate.
SECTION 15. DESIGNATION AS BANK QUALIFIED. The City designates the Bounds as
a "qualified tax-exempt obligation" within the meaning of Section 265(bX3) of the Internal Revenue
Code of 1986, as amended (the "Code"), The City does not rewnably anticipate that the City, any
subordinate entities of the City, and issues of debt that issue 'on behalf' of the City, will during
calendar year 1999 have more Utah $10.000,000 of "tax-exempt' obligations, exclusive of those
obligations described in Section 265(b)(3)(C)(ii) of the Code.
SECTION 16, GENERAL AUTHORITY, The Mayor or VimMayor, the City Manager, the
Director of Finance, the City Attomey and any other properofficials of the Cityere hereby authorized
to do all acts and things required of them by this Resolution, the Bond Resolution, the Official
Statement, the Series 1999 Bonds, the OTC Agreement or that may otherwise be desirable or
consistent with accomplishing the full, punctual and complete performance of all the tends, covenants
and agreements contained in any of the foregoing and 'each member, employee, th termrney and officer
Of the City is hereby authorized and directed to execute and deliver any and all papers ad instruments
and to cause to be done any and all acts and things necessary or proper for carrying out the
rsnsaetions contemplated thereby.
SECTION 17. SEVERABILTT AND INVALID PROVISIONS. If any one or more of the
covenants, agreements or provisions herein contained shall be held contrary to any express provision
of law or contrary to the policy of express law, but not expressly prohibited or against public policy,
or shall for any reason whatsoever be held invalid, then such covenants, agreements or provision shill
be null and void and shall be deemed separable from the remaining covenants, agreements or
provisions and shall in no way affect the validity of the other provisions hereof or of the Series 1999
Bonds.
SECTION 18. BOND RESOLUTION TO CONTINUE IN FORCE. Except as herein
expressly prod vided as to the Series 1999 Bonds, the Bond Resolution aall the terns ad provisions
re theof, are and shall remain in full force and effect.
SECTION 19. EFFECTIVE DATE. This Resolution shall be effective immediately upon
its adoption.
o ~;1
lasuno3 puoff jo uoiuidp 3o uxao,J
Q xi ua d
AKERMAN, SENTERFITT 8 EIDSON, P A.
ATTORNEYS AT LAW
CITRUS CENTER
255 SOUTH ORANGE AVENUE
POST OFFICE BOX 231
ORLANDO, FLORIOA 32802-023I
(407) 843-7860
TELECOPY (407) 643-6610
[Date]
City Commissioners of
The City of Tamarac, Florida
7525 N.W. 88th Avenue
Tamarac, Florida 33321-2401
CITY OF TAMARAC, FLORIDA
SALES TAX REVENUE BONDS
SERIES 1999
Ladies and Gentlemen:
We have acted as Bond Counsel in connection with the issuance by the City Commission of
the City of Tamarac, Florida (the "Issuer"), of its $ Sales Tax Revenue Bonds, Series 1999
(the "Bonds"), pursuant to Resolution No. 98-156 adopted by the City Commission of the Issuer on
May 27, 1998 and Resolution No. [number] adopted by the City Commission on , (together,
the "Bond Resolution"). Any capitalized undefined terms used herein shall have the meaning set
forth in the Bond Resolution.
As to questions of fact material to our opinion. we have relied upon representations of the
Issuer contained in the Bond Resolution and in the certified proceedings and other certifications of
public officials furnished to us, without undertaking to verify the same by independent investigation.
We have not undertaken an independent audit, examination, investigation or inspection of such
matters and have relied solely on the facts, estimates and circumstances described in such
proceedings and certifications. We have assumed the genuineness of signatures on all documents
and instruments, the authenticity of documents submitted as originals and conformity to originals
of documents submitted as copies.
ORLANDO MIAMI TALLAHASSEE TAMPA WEST PALM BEACH
In rendering this opinion. we have examined and relied upon certificates of even date
herewith of representatives of the Issuer as to the due creation and valid existence of the Issuer, the
due adoption of tho Bond Resolution, the due authorization, execution and delivery of the Bonds and
the compliance by the Issuer with all conditions in the City Charter and resolutions of the Issuer
precedent to the issuance of the Bonds.
The Bonds are limited special obligations of the Issuer and do not constitute a general
obligation or pledge of the faith, credit or taxing power of the Issuer, Broward County, the State of
Florida or any political subdivision thereof.
The opinions set forth below are expressly limited to, and we opine only with respect to, the
laws of the State of Florida and the federal income tax laws of the United State of America.
Based on our examination, we are of the opinion, as of the date of delivery of and payment
for the Bonds, as follows:
l . The Issuer is validly existing as a municipal corporation of the State of Florida with
the power to adopt the Bond Resolution, perform the agreements on its part contained therein and
issue the Bonds.
2. The Bond Resolution has been duly adopted by the Issuer and constitutes a valid and
binding obligation of the Issuer enforceable upon the Issuer in accordance with its terms.
3. The Bond Resolution creates a valid lien on the Pledged Revenues as defined therein.
4. The Bonds are valid and binding special obligations of the Issuer enforceable in
accordance with their terms, payable solely from the sources provided therefor in the Bond
Resolution.
5. Interest on the Bonds is excluded from gross income for federal income tax purposes
and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on
individuals and corporations; it should be noted, however, that, for the purpose of computing the
alternative minimum tax imposed on certain corporations (as defined for federal income tax
purposes), such interest is taken into account in determining adjusted current earnings. The opinion
set forth in the preceding sentence is subject to the condition that the Issuer comply with all
requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent
to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross
income for federal income tax purposes. The Issuer has covenanted to comply with all such
requirements. Failure to comply with certain of such requirements may cause interest on the Bonds
to be included in gross income for federal income tax purposes retroactive to the date of issuance of
the Bonds. We express no opinion regarding other federal tax consequences arising with respect to
the Bonds.
2
6. The Bonds and the interest thereon are exempt from taxation under the laws of the
State of Florida, except as to estate taxes and taxes imposed by Chapter 220, Florida Statutes, on
interest, income or profits on debt obligations owned by corporations, as defined therein.
7. The Bonds are "qualified tax-exempt obligations" within the meaning of
Section 265(b)(3) of the Code. In rendering this opinion, we have relied upon certain representations
of the Issuer contained in the Bond Resolution.
It is to be understood that the rights of the owners of the Bonds and the enforceability thereof
may be subject to the exercise of judicial discretion in accordance with general principles of equity,
to the valid exercise of the sovereign police powers of the State of Florida and of the constitutional
powers of the United States of America and to bankruptcy, insolvency, reorganization, moratorium
and other similar laws affecting creditors' rights heretofore or hereafter enacted.
Our opinions expressed herein are predicated upon present law, facts and circumstances, and
we assume no affirmative obligation to update the opinions expressed herein if such laws, facts or
circumstances change after the date hereof.
Very truly yours,
AKERMAN, SENTERFITT & EIDSON, P.A.
Continuing Disclosure Commitment
CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the "DisclosureCe tifi rt)) is execue tted with
and
delivered by the City Commission of the City of Tamarac, Florida the
the issuance of $��- City of Tamarac, Florida Sales Tax Revenue Bonds, Series 19991(tthhee
"Bonds"). The Bonds are being issued pursuant to Resolution
h�r8 the6adopted on May 27, 'Resolution"), The Issuer
and Resolution No. 99-[number] adopted on July 1
covenants and agrees as follows:
FICATE. This Disclosure
SECTION I. PURPOSE OF THE DISCLOSURE t e benefit
Rof he Bondholders and in
Certificate is being executed and delivered by the Issuer
order to assist the Underwriter in complying with S.E.C. Rule 15c2-12(b)(5).
h in the
SECTION 2. DEFINITIONS. In addition to the definitions
ficate unlesosrtotherw otherwise Resolution,
which apply to any capitalized term used in this Disclosure
g capitalized terms shall have the following meanings:
this Section, the followin
"Annual Report" shall mean any Annual Report provided by the Issuer pursuant to, and as
described in, Section 3 and 4 of this Disclosure Certificate.
"Bondholder" shall mean the registered holder of any Bond as reflected on the bond register
maintained in accordance with the Resolution, or any beneficial owner reflected in the books of the
registered holder.
Dissemination Agentshall mean the Issuer, or any successor Dissemination Agent
designated in writing by the Issuer and which has filed with the Issuer a written acceptance of such
g
designation.
events listed in Section 5(a) of this Disclosure
"Listed Events" shall mean any of the
Certificate.
l Securities
"National Repository" shall mean any NationallyRecognized
cgMnentlpyaapproved by
Information Repository for purposes of the Rule. The National Repositories
t forth in Exhibit B.
the Securities and Exchange Commission are se
"Repository" shall mean each National Repository and each State Repository, if any.
"Rule" shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission
under the Securities Exchange Act of 1934, as the same may be amended from time to time.
"State Repository" shall mean any public or private repository or entity designated by the
State as a state repository for the purpose of the Rule. As of the date of this Agreement, there is no
State Repository.
,i
"Tax-exempt" shall mean that interest on the Bonds is excluded from gross income for
federal income tax purposes, whether or not such interest is includable as an item of tax reference
1' or otherwise includable directly or indirectly for purposes of calculating any other tax liability,
j including any alternative minimum tax or environmental tax.
"Underwriter" shall mean First Union Capital Markets Corp.
SECTION 3. PROVISION OF ANNUAL REPORTS
(a) The Issuer shall, or shall cause the Dissemination Agent to, not later than April 30
of each year, commencing April 30, 2000, provide to each Repository an Annual Report which is
consistent with the requirements of Section 4 of this Disclosure Certificate. Not later than fifteen
(15) Business Days prior to said date, the Issuer shall provide the Annual Report to the
Dissemination Agent (if other than the Issuer). The Annual Report may be submitted as a single
document or as separate documents comprising a package, and may cross-reference other
information as provided in Section 4 of this Disclosure Certificate; provided that the audited
financial statements of the Issuer may be submitted separately from the balance of the Annual
Report.
(b) If the Issuer is unable to provide to the Repositories an Annual Report by the date
required in subsection (a), the Issuer shall send a notice to each Repository in substantially the form
attached as Exhibit A.
(c) The Dissemination Agent shall:
(i) determine each year prior to the date for providing the Annual Report the
name and address of each National Repository and each State Repository, if
any; and (if the Dissemination Agent is other than the Issuer)
(ii) file a report with the Issuer certifying that the Annual Report has been
provided pursuant to this Disclosure Certificate, stating the date it was
provided and listing all the Repositories to which it was provided.
SECTION 4. CONTENT OF ANNUAL REPORTS. The Issuer's Annual Report shall
contain or incorporate by reference the following:
1. The audited financial statement of the Issuer for the prior fiscal year, prepared in
accordance with generally accepted accounting principles as promulgated to apply to governmental
entities from time to time by the Governmental Accounting Standards Board. If the Issuer's audited
financial statements are not available by the time the Annual Report is required to be filed, the
Annual Report shall contain unaudited financial statements in a format similar to the financial
statements contained in the final Official Statement, and the audited financial statements shall be
filed in the same manner as the Annual Report when they become available.
2
2. Financial information and operating data of the City for the preceding fiscal year of
the type included in the Official Statement.
3. Any or all of the items listed above may be incorporated by reference from other
documents, including official statements of debt issues of the Issuer or related public entities, which
have been submitted to each of the Repositories or the Securities and Exchange Commission. If the
document incorporated by reference is a final official statement, it must be available from the
Municipal Securities Rulemaking Board. The Issuer shall clearly identify each such other document
so incorporated by reference.
SECTION 5. REPORTING OF SIGNIFICANT EVENTS.
(a) Pursuant to the provisions of this Section 5, the Issuer shall give, or cause to be given,
notice of the occurrence of any of the following events with respect to the Bonds, if material:
principal and interest payment delinquencies;
2. non-payment related defaults;
3. modifications to rights of Bondholders;
4. optional, contingent or unscheduled bond calls;
5. defeasances;
6. rating changes;
7. adverse tax opinions or events affecting the Tax-exempt status of the Bonds;
8. unscheduled draws on the debt service reserves reflecting financial
difficulties;
9. unscheduled draws on credit enhancements reflecting financial difficulties;
10. substitution of credit or liquidity providers, or their failure to perform;
1 l . release, substitution or sale of property securing repayment of the Bonds.
(b) Whenever the issuer obtains knowledge of the occurrence of a Listed Event, the Issuer
shall as soon as possible determine if such would constitute material information for Bondholders,
provided, that any event under subsection (a), (4), (5) or (6) will always be deemed to be material.
3
(c) If the Issuer determined that knowledge of the occurrence of a Listed Event would
be material, the Issuer shall promptly file a notice of such occurrence with the Municipal Securities
Rulemaking Board and each State Repository, if any. Notwithstanding the foregoing, notice of
Listed Events described in subsections (a)(4) and (5) need not be given under this subsection any
earlier than the notice (if any) of the underlying event is given to Bondholders pursuant to the
Resolution.
SECTION 6. TERMINATION OF REPORTING OBLIGATION. The Issuer's
obligations under this Disclosure Certificate shall terminate upon the defeasance, prior redemption
or payment in full of all of the Bonds.
SECTION 7. DISSEMINATION AGENT. The Issuer may, from time to time, appoint
or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure
Certificate, and may discharge any such Agent, with or without appointing a successor
Dissemination Agent.
SECTION 8. AMENDMENT; WAIVER. Notwithstanding any other provision of this
Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this
Disclosure Certificate may be waived, if such amendment or waiver is supported by an opinion of
counsel expert in federal securities laws, to the effect that such amendment or waiver would not, in
and of itself, cause the undertakings herein to violate the Rule if such amendment or waiver had been
effective on the date hereof but taking into account any subsequent change in or official
interpretation of the Rule.
SECTION 9. ADDITIONAL INFORMATION. Nothing this Disclosure Certificate shall
be deemed to prevent the Issuer from disseminating any other information, using the means of
dissemination set forth in this Disclosure Certificate or any other means of communication, or
including any other information in any Annual Report or notice of occurrence of a Listed Event. in
addition to that which is required by this Disclosure Certificate. If the Issuer chooses to include any
information in any Annual Report or notice of occurrence of a Listed Event in addition to that which
is specifically required by this Disclosure Certificate, the Issuer shall have no obligation under this
Agreement to update such information or include it in any future Annual Report or notice of
occurrence of a Listed Event.
SECTION 10. DEFAULT. In the event of a failure of the Issuer to comply with any
N provision of this Disclosure Certificate, any Bondholder may take such actions as may be necessary
and appropriate, including seeking mandate or specific performance by court order, to cause the
Issuer to comply with its obligations under this Disclosure Certificate. A default under this
Disclosure Certificate shall not be deemed an Event of Default under the Resolution, and the sole
! _ remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with this
Disclosure Certificate shall be an action to compel performance.
4
SECTION 11. DUTIES, IMMUNITIES AND LIABILITIES OF DISSEMINATION
AGENT. The Dissemination Agent shall have only such duties as are specifically set forth in this
Disclosure Certificate, and the Issuer agrees to indemnify and save the Dissemination Agent, its
officers, directors, employees and agents, harmless against any loss, expense and liabilities which
it may incur arising out of or in the exercise of performance of its powers and duties hereunder,
including the costs and expenses (including attorneys fees) of defending against any claim of
liability, but excluding liabilities due to the Dissemination Agent's negligence or wilful misconduct.
The obligations of the Issuer under this Section shall survive resignation or removal of the y
Dissemination Agent and payment of the Bonds.
SECTION 12. BENEFICIARIES. This Disclosure Certificate shall inure solely to the
benefit of the Issuer, the Dissemination Agent, the Underwriter and the Bondholders, and shall create
no rights in any other person or entity.
Dated as of August 1, 1999.
CITY COMMISSION OF THE CITY OF
TAMARAC, FLORIDA
By:
Joe Schreiber, Mayor
5
EXHIBIT A
NOTICE TO REPOSITORIES OF 1~AILURE TO FILE ANNUAL REPORT
Name of Issuer: City of Tamarac, Florida
Name of Bond Issue: $ City of Tamarac, Florida
Sales Tax Revenue Bonds, Series 1999
Date of Issuance: , 1999
NOTICE IS HEREBY GIVEN that the Issuer has not provided an Annual Report with respect to the
above -named Bonds as required by the Bond Resolution. The Issuer anticipates that the Annual
Report will be filed by
Dated:
CITY COMMISSION OF THE CITY OF
TAMARAC, FLORIDA
L.
Mayor
EXHIBIT B
Nationally Recognized Municipal Securities Information Repositories approved by the
Securities and Exchange Commission:
Bloomberg Municipal Repository
P.O. Box 840
Princeton, NJ 08542-0840
Internet address: MLTNIS@bloomberg.doc
(609) 279-3200
FAX (609) 279-3235 (609) 279-5963
Contact: Dave Campbell
Thomson NRMSIR
Secondary Market Disclosure
395 Hudson Street, 3rd Floor
New York, NY 10014
Internet address: Disclosure@muller.com
(212) 807-5001
FAX (212) 989-2078
Contact: Thomas Garske
DPC Data, Inc.
One Executive Drive
Fort Lee, NJ 07024
(201) 346-0701
FAX (201) 947-0107
JJ Kenny Information Services
The Repository
65 Broadway, 16th Floor
New York, NY 10006
(212)770-4568
FAX (212) 797-7994
Contact: Joan Horai, Repository
A list of the names and addresses of all designated NRMSIRs as of any date may currently
be obtained by calling the SEC's Fax on Demand Service at (202) 942-8088 and requesting
document number 0206.
Apendix FF
Specimen Reserve Fund Policy
Financial Guaranty Insurance
Company
I IS Broadway
Newyork. NY 10006
(212) 312-3000
(800) 352-OWI
A GE Capital Cw"ny
Municipal Bond Debt Service
Reserve Fund Policy
Issuer: Policy Number.
Control Number; 0010001
Bonds: , together with any parity obligations Pre 'u
issued under the authorizing document, as amended and MA
supplemented, and secured by the same debt service oust:
reserve fund NO
Paying Agent: r` Termination Date:
Financial Guaranty Insurance CompananCial Guaranty"), a New Yoik stock insurance company, in
consideration of the payment of the pre and subject to the terms of this Policy, hereby unconditionally
and irrevocably agrees to pay the paying agent named above or its successor, as paying agent for the Bonds
(the "Paying Agent"), for the benefit of Bondholders, that portion (not to exceed the Maximum Amount set
forth above) of the amount required to pay principal and interest (but not any prepayment premium) on the
Bonds which shall become Due for Payment but shall be unpaid by reason of Nonpayment by the Issuer. No
payment shall be due hereunder for any event of Nonpayment that occurs after the Termination Date set forth
above.
Financial Guaranty will snake such payment to the Paying Agent on the date such principal or interest
becomes Due for Payment or on the Business Day next following the day on which Financial Guaranty shall
have received Notice of Nonpayment, whichever is later. Upon such disbursement, Financial Guaranty shall
become entitled to reimbursement therefor (together with interest thereon) all as provided in the Debt Service
Reserve Fund Policy Agreement between the Issuer and Financial Guaranty dated as of the Effective Date of
this Policy. The Maximum Amount shall be automatically reinstated when and to the extent that the Issuer
repays amounts disbursed hereunder, but shall not be reinstated to the extent of amounts received by Financial
Guaranty constituting interest on amounts disbursed to the Paying Agent pursuant to this Policy. Financial
Guaranty shall provide Notice to the Paying Agent of any reinstatement of any portion of the Maximum
Amount within one Business Day of such reinstatement.
This Policy is non -cancellable for any reason, including the failure of the Issuer to reimburse Financial
Guaranty for any payment trade hereunder.
As used herein, the term "Bondholder" means, as to a particular Bond, the person other than the Issuer who, at
the time of Nonpayment, is entitled under the terms of such Bond to payment thereof. "Due for Payment"
means, when referring to the principal of a Bond, the stated maturity date thereof or the date on which the
same shall have been duly called for mandatory sinking fund redemption and does not refer to any earlier date
on which payment is due by reason of call for redemption (other than by mandatory sinking fund redemption),
acceleration or other advancement of maturity and means, when referring to interest on a Bond, the stated date
for payment of interest. "Nonpayment" in respect of a Bond means the failure of the Issuer to have provided
FGiC is a 'stored service mark used by Financial Guaranty Insurance y under license frmn in parft cmumm FGIC Corporttiom
Form 9009 (12/94) Page 1 of 2
Financial Guaranty Insurance
Company
115 Broadway
New Yobs~ NY 10006
(212)312.3000
(800) 352-Ml
A GE Captal company
Municipal Bond Debt Service
Reserve Fund Policy
FGIC.
sufficient funds to the Paying Agent for payment in fWl of all principal and interest Due for Payment on such
Bond and includes any payment of principal or interest made to a Bondkolder by or on behalf of the issuer of
such Bond which has been recovered from such Bondholder pursu United States Bankruptcy Code by
a trustee in bankruptcy in accordance with a final, no 1 order of a court having competent
jurisdiction. "Notice" means telephonic or telegraphic o uendy confirmed in writing, or written
notice by registered or certified mail, from the Pay' g t or the Bonds to Financial Guaranty or from
Financial Guaranty to the Paying Agent, as c '` a "Business Day" means any day other than a
Saturday, Sunday or a day on which the P east is authorized by law to remain closed.
In Witne
ss Whereof, Financial Guarancaused this Policy t tl' ry o be affixed with its corporate seal and to be
signed by its duly authorized officer in facsimile to become effective and binding upon Financial Guaranty by
virtue of the countersignature of its duly authorized representative.
President
Effective Date:
Authorized Representative
State Street Bank and Trust Company, N.A., acknowledges that it has agreed to perform the duties of Fiscal
Agent under this Policy.
Authorized Officer
FGIC is a re 'stored service mark used by Financial Guaramv Insurance Company under license Prom its Varent company, FGIC Camondiem
Form 9009 (I 2194) Page 2 of 2
Financial Guaranty Insurance
Company
115 Broadway
New York, NY 10006
(212)312-3000
(900) 3.52-" l
A GE Capital Company
Endorsement
To Financial Guaranty Insurance Company
Insurance Policy
Policy Number: Control Number: 0010001
The insurance provided by this Policy is not covered by the
Insurance Code, Sec. 631.50 et seq. ). 1 14
Guaranty Association (Florida
NOTHING HEREIN SHALL BE CONSTRUE WA D, ALTER, REDUCE OR AMEND COVERAGE
IN ANY OTHER SECTION OF THE POI. CONTRARY TO THE POLICY LANGUAGE,
THE TERMS OF THIS ENDORSEMEI�S E DE THE POLICY LANGUAGE.
In Witness Whereof, Financial Guaranty has caused this Endorsement to be affixed with its corporate seal and
to be signed by its duly authorized officer in facsimile to become effective and binding upon Financial
Guaranty by virtue of the countersignature of its duly authorized representative.
President
Effective Date:
Acknowledged as of the Effective Date written above:
Authorized Representative
COUNTERSIGNATURE:
Authorized Officer Licensed Resident Agent
State Street Bank and Trust Company, N.A., as Fiscal Agent
FGIC is it registered service mark used by Financial Guaranty Insurance Company under license from its parent com any FGIC C lion.
Form E-0032 (10/93) Page I of I
Appendix G
Specimen Bond Insurance Policy
Financial Guaranty Insurance
Company
1IS Broadway
New York, NY 10006
(212) 312-3000
(goo)352-o00I
A GE capital company
Municipal Bond
New Issue Insurance Policy
Issuer:
Bonds:
Policy Number:
Control
0010001
Insurance Company C`Fin G `anty" ), a New York stock insurance company, to
Financial Guaranty mart of the any Ject to the terms of this Polity,
hereby unconditionally
consideration of the pay and Trust Company, N.A., or its successor, as its agent (the
and irrevocably agrees to pay to State St portion of the principal and interest on the above -
"Fiscal Agent"), for the benefit of Bon 5 hall becoe Due for Payment but shall be unpaid by reason of
described debt obligations (the "Bonds")
which Nonpayment by the Issuer.
rind or interest
Financial Guaranty will make such payments to the Fiscal Agent d on whicsuch
F nancial Guaranty shall
becomes Due for Payment or on the Business Day next following the day
o the
lder the
ent
have recei
ved Notice of Nonpayment, whichever is later. The
�nAg t is ill disburse
by teas°n of Nonpayment
satisfactory to it
face amount of principal and interest which is then Due or payment
the Issuer but onlnce of
y upon receipt by the Fiscal Agent fo orricet°reasblDue for Payment and (ii) evidence,
the by of the principal ant id such
the Bondholder's right to receive payment ant, that all of the Bondholder's rights
to Payment
disbursement,
such
including any appropriate instruments of assignn►such
n vest in Financial Guaranty• p° pa ant of rincipal
principal or interest Due for Payment shall thereupon B appurtenant coupon or right to yin P
Financial Guaranty shall become the owner of the Bond,
r interest on such Bond and shall be fully subragated to all of the Bondholder's rights thereunder, including
o ht to payment thereof.
the Bondholder's rig
reason. The pcemitun on this Policy is not refundable for
loss oany � y
This Policy is non -cancellable for any prior to their maturity_ Thus Policy does not insure against
including the payment of the Bonds p able with respect to any Bond- remium which may at any time be pay
prepayment p
articular Bond, the person other than the Issuer who, at
As used herein, the term "Bondholder" means, as to a p payment thereof. "Due for Payment
the time of Nonpayment, is entitled under the terms of such Bond to pdaate thereof or the date on which the
to the principal of a Bond, the stated maturityptn end does not refer to any earlier date
means, when referring sinking fund re fiend redemption),
same shall have been duly called for mandatory mandatory sinking
on which payment is due by reason of call for redemption (other than by
maturity and means, when referring to interest on a Bond, the stated date
acceler
ation or other advancement of
page 1 of 2
Foam 9000 (10193)
Financial Guaranty Insurance !'
Company nGic.
115 Broadway j'
New York, NY 10006
(212)312-3000
(800) 352-0001
A GE Capital Company
Municipal Bond
New Issue Insurance Policy
for payment of interest. "Nonpayment" in respect of a Bond means the failure of the Issuer to have provided
sufficient funds to the paying agent for payment in full of all principal aUd interest Due for Payment on such
Bond. "Notice" means telephonic or telegraphic notice. subsequen NQALned in writing, or written notice by
registered or certified mail, from a Bondholder or a paying kr the Bonds to Financial Guaranty.
"Business Day" means any day other than a Saturday, Su q o on which the Fiscal Agent is authorized
by law to remain closed. `
In Witness Whereof, Financial Guaranty Vh is Policy to be affixed with its corporate seal and to be
signed by its duly authorized officer ine to become effective and binding upon Financial Guaranty by
virtue of the countersignature of its duly aszed representative.
President
Effective Date:
Authorized Representative
State Street Bank and Trust Company, N.A., acknowledges that it has agreed to perform the duties of Fiscal
Agent under this Policy.
Authorized Officer
FGIC is a re 'stored service mark used bv Financial Guaranty Insurance Com anv under license from its varcnt com any FGIC Corpmtion.
Form 9000 (10193) Page 2 of 2
Financial Guaranty Insurance
Company
115 Broadway
New York, NY 10006
(212)312-3000
(800) 352-0001
A GE Capita/ Company
Endorsement
To Financial Guaranty Insurance Company
Insurance Policy
Policy Number: Control mber: 0010001
It is further understood that the term "Nonpayment" i
interest made to a Bondholder by or on behalf of
Bondholder pursuant to the United States BKill
final, nonappealable order of a court havaduLe
1 1, Bond includes any payment of principal or
sue such Bond which has been recovered from such
XMde by a trustee in bankruptcy in accordance with a
jurisdiction.
NOTHING HEREIN SHALL BE CONSTKtED TO WAIVE, ALTER, REDUCE OR AMEND COVERAGE
IN ANY OTHER SECTION OF THE POLICY. IF FOUND CONTRARY TO THE POLICY LANGUAGE,
THE TERMS OF THIS ENDORSEMENT SUPERSEDE THE POLICY LANGUAGE.
In Witness Whereof, Financial Guaranty has caused this Endorsement to be affixed with its corporate seal and
to be signed by its duly authorized officer in facsimile to became effective and binding upon Financial
Guaranty by virtue of the countersignature of its duly authorized representative.
President
Effective Date:
Acknowledged as of the Effective Date written above:
Authorized Representative
Authorized Officer
State Street Bank and Trust Company, N.A., as Fiscal Agent
FGIC is a re istered service mark used by Financial Guarantv Insurance Com anv under license from its parent company, FGIC Corporation,
Form E-0002 (10/93) Page 1 of 1
II
Financial Guaranty Insurance
Company FGIC.
115 Broadway
New York, NY 10006
(212) 312-3000
(800) 352-0001
A GE Capital Company
Endorsement
To Financial Guaranty Insurance Company
Insurance Policy
Policy Number: Control Number: 0010001
i ne insurance provided by this Policy is not covered by the Fl
Insurance Code, Sec. 631.50 et seq, ). _
Guaranty Association (Floric
NOTHING HEREIN SHALL BE CONSTRUE W V� ALTER, REDUCE OR AMEND COVERAG.
IN ANY OTHER SECTION OF THE PO CONTRARY TO THE POLICY LANGUAGE
THE TERMS OF THIS ENDORSEMEI�SS E DE THE POLICY LANGUAGE.
In Witness Whereof, Financial Guaranty has caused this Endorsement to be affixed with its corporate seal an
to be signed by its duly authorized officer in facsimile to become effective and binding upon Financia
Guaranty by virtue of the countersignature of its duly authorized representative.
President
Effective Date:
Acknowledged as of the Effective Date written above:
Authorized Representative
COUNTERSIGNATURE:
Authorized Officer Licensed Resident Agent
State Street Bank and Trust Company, N.A., as Fiscal Agent
FGIC is a re istercd service mark used b Financial Guaran Insurance Cam ante under license from its anent com an FGIC Co ration.
Form E-0032 (10/93) Page 1 of 1
Exhibit D to
Bond Resolution No.
PAYING AGENT AND REGISTRAR AGREEMENT
THIS PAYING AGENT AND REGISTRAR AGREEMENT, dated [date], by and
between the CITY OF TAMARAC, FLORIDA (the "Issuer"), and [NAME.PAYING.AGENT],
[a national banking association], having its principal place of business at [address] (the "Bank").
WITNESSETR-I:
WHEREAS, the Issuer, by the Resolution (as hereinafter defined), has designated the Bank
as Paying Agent and Registrar for its $ Sales Tax Revenue Bonds, Series 1999, dated
[date] (the "Bonds"); and
WHEREAS, the Issuer and the Bank desire to set forth the Bank's duties as Paying Agent
and Registrar and the compensation to be paid the Bank for its services.
NOW, THEREFORE, it is agreed by the parties hereto as follows:
SECTION 1. DUTIES. The Bank agrees to serve as Paying Agent and Registrar for the
Bonds and to perform the duties of Paying Agent and Registrar as specified in or contemplated by
Resolution No. 98-1.56 adopted on May 27, 1998, relating to the issuance of the Bonds (the
"Resolution").
SECTION 2. DEPOSIT OF FUNDS. The Issuer shall deposit or cause to be deposited
with the Bank, on or before the business day prior to the date payment is due on the Bonds, sufficient
funds from the Pledged Revenues pledged for the payment of the Bonds under the Resolution to pay
when due and payable the principal of, premium, if any, and interest on the Bonds.
SECTION 3. USE OF FUNDS; CANCELED BONDS. The Bank shall use the funds
received from the Issuer pursuant to Section 2 of this Agreement to pay the principal of, premium,
if any, and interest on the Bonds in accordance with the Resolution. The Bank shall cremate
canceled Bonds and transmit to the Issuer a certificate of destruction therefor.
SECTION 4. STATEMENTS. The Bank shall prepare and shall send to the Issuer
written statements of account relating to all transactions effected by the Bank pursuant to this
Agreement at the end of each fiscal year of the Issuer.
SECTION 5. OBLIGATION TO ACT. The Bank shall be obligated to act only in
accordance with the Resolution and any written instructions received in accordance therewith;
provided, however, that the Bank is authorized hereby to comply with any orders, judgments or
OR16971911 I)-1
• decrees of any court with or without jurisdiction and shall not be liable as a result of its compliance
with the same.
SECTION 6. RELIANCE BY BANK. The Bank may rely absolutely upon the
genuineness and authorization of the signature and purported signature of any party upon any
instruction, notice, release, request, affidavit or other document delivered to it pursuant to the
Resolution.
SECTION 7. COUNSEL; LIMITED LIABILITY. The Bank may consult with counsel
of its own choice and shall have sole and complete authorization and protection for any action taken
or suffered by it under the Resolution in good faith and in accordance with the opinion of such
counsel. The Bank shall otherwise not be liable for any mistakes of fact or errors of judgment, or
for any acts or omissions of any kind unless caused by its willful misconduct or negligence.
SECTION 8. FEES AND EXPENSES. In consideration of the services rendered by the
Bank as Paying Agent and Registrar, the Issuer agrees to and shall pay to the bank its proper fees and
all expenses, charges, attorneys' fees and other disbursements incurred by it or its attorneys, agents
and employees in and about the performance of its powers and duties as Paying Agent and Registrar
as set forth in the attached Exhibit A. The Bank shall not be obligated to allow and credit interest
upon any moneys in respect of principal, interest or premium, if any, due in respect of the Bonds,
which it shall at any time receive under any of the provisions of the Resolution or this Agreement.
SECTION 9. FURNISHING INFORMATION; AUTHORIZATION. The Bank shall,
at all times, when requested to do so by the Issuer, furnish full and complete information pertaining
to its functions as the Paying Agent and Registrar with regard to the Bonds, and shall without further
authorization, execute all necessary and proper deposit slips, checks, certificates and other
documents with reference thereto.
SECTION 10. CANCELLATION; TERMINATION. Either of the parties hereto, at its
option, may cancel this Agreement after giving thirty (30) days written notice to the other party of
its intention to cancel, and this Agreement may be canceled at any time by mutual consent of the
parties hereto. This Agreement shall terminate without further action upon final payment of the
Bonds and the interest appertaining thereto.
SECTION 11. SURRENDER OF FUNDS, REGISTRATION RECORDS;
NOTIFICATION OF BONDHOLDERS. In the event of a cancellation of this Agreement, the
Issuer shall deliver any proper and necessary releases to the Bank (in a form acceptable to the Bank)
upon demand and the Bank shall upon demand pay over the funds on deposit with the Bank as
Paying Agent and Registrar in connection with the Bonds and surrender all registration books and
related records, and the Issuer may appoint and name a successor to act as Paying Agent and
Registrar for the Bonds. The Issuer shall, in such event, at its expense, notify all holders of the
Bonds of the appointment and name of the successor, by providing notice in the manner required for
the redemption of the Bonds.
0 OR169719;1 D-2
SECTION 12. NONASSIGNABILITY. This Agreement shall not be assigned by either
party without written consent of the other party.
SECTION 13. MODIFICATION. No modification of this Agreement shall be valid
unless made by a written agreement, executed and approved by the parties hereto.
SECTION 14. SEVERABILITY. Should any action or part of any section of this
Agreement be declared void, invalid or unenforceable by any court of law for any reason, such
determination shall not render void, invalid or unenforceable any other section or other part of any
section of this Agreement.
SECTION 15. GOVERNING LAW. This Agreement shall be governed by and
interpreted in accordance with the laws of the State of Florida.
SECTION 16. MERGER OR CONSOLIDATION OF THE BANK. Any corporation
into which the Bank may be merged or with which it may be consolidated, or any corporation
resulting from any merger or consolidation to which the Bank shall be a party, shall be the successor
Paying Agent and Registrar under this Agreement, without the execution or filing of any paper or
any further act on the part of the parties hereto.
LJ
0 OR169719;1 DW3
LJ
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed.
by their duly authorized officers and their official seals to be hereunto affixed and attested as of the
date first above written.
[SEAL]
Attest:
ON
Carol Gold, CMC/AAE,
City Clerk
CITY OF TAMARAC, FLORIDA
56-a
Joe Schreiber,
Mayor
[NAME.PAYING.AGENT]
5-In
[SEAL] Its: Agent
0 D_4
•
•
EXHIBIT A
Fee for services as Paying Agent and Registrar will be $ , payable annually in advance.
Out-of-pocket expenses will be reimbursed at cost.
0 OR169719J
Exhibit F to
4 Resolution No.
CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and
delivered by the City Commission of the City of Tamarac, Florida (the "Issuer") in connection with
the issuance of $ City of Tamarac, Florida Sales Tax Revenue Bonds, Series 1999 (the
'Bonds"). The Bonds are being issued pursuant to Resolution No. 98-156 adopted on May 27, 1998
and Resolution No. 99-[number] adopted on [Date] (together, the "Resolution"). The Issuer
covenants and agrees as follows:
SECTION 1. PURPOSE OF THE DISCLOSURE CERTIFICATE. This Disclosure
Certificate is being executed and delivered by the Issuer for the benefit of the Bondholders and in
order to assist the Underwriter in complying with S.E.C. Rule 15c2-12(b)(5).
SECTION 2. DEFINITIONS. In addition to the definitions set forth in the Resolution,
which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in
this Section, the following capitalized terms shall have the following meanings:
"Annual Report" shall mean any Annual Report provided by the Issuer pursuant to, and as
described in, Section 3 and 4 of this Disclosure Certificate.
. 'Bondholder" shall mean the registered holder of any Bond as reflected on the bond register
maintained in accordance with the Resolution, or any beneficial owner reflected in the books of the
registered holder.
"Dissemination Agent" shall mean the Issuer, or any successor Dissemination Agent
designated in writing by the Issuer and which has filed with the Issuer a written acceptance of such
designation.
"Listed Events" shall mean any of the events listed in Section 5(a) of this Disclosure
Certificate.
"National Repository" shall mean any Nationally Recognized Municipal Securities
Information Repository for purposes of the Rule. The National Repositories currently approved by
the Securities and Exchange Commission are set forth in Exhibit B.
"Repository" shall mean each National Repository and each State Repository, if any.
"Rule" shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission
under the Securities Exchange Act of 1934, as the same may be amended from time to time.
OR16964011 F-1
"State Repository" shall mean any public or private repository or entity designated by the
State as a state repository for the purpose of the Rule. As of the date of this Agreement, there is no
State Repository.
"Tax-exempt" shall mean that interest on the Bonds is excluded from gross income for
federal income tax purposes, whether or not such interest is includable as an item of tax reference
or otherwise includable directly or indirectly for purposes of calculating any other tax liability,
including any alternative minimum tax or environmental tax.
"Underwriter" shall mean First Union Capital Markets Corp.
SECTION 3. PROVISION OF ANNUAL REPORTS
(a) The Issuer shall, or shall cause the Dissemination Agent to, not later than [month] 1
of each year, commencing [month] 1, 1999, provide to each Repository an Annual Report which is
consistent with the requirements of Section 4 of this Disclosure Certificate. Not later than fifteen
(15) Business Days prior to said date, the Issuer shall provide the Annual Report to the
Dissemination Agent (if other than the Issuer). The Annual Report may be submitted as a single
document or as separate documents comprising a package, and may cross-reference other
information as provided in Section 4 of this Disclosure Certificate; provided that the audited
financial statements of the Issuer may be submitted separately from the balance of the Annual
Report.
• (b) If the Issuer is unable to provide to the Repositories an Annual Report by the date
required in subsection (a), the Issuer shall send a notice to each Repository in substantially the form
attached as Exhibit A.
(c) The Dissemination Agent shall:
(i) determine each year prior to the date for providing the Annual Report the
name and address of each National Repository and each State Repository, if
any; and (if the Dissemination Agent is other than the Issuer)
(ii) file a report with the Issuer certifying that the Annual Report has been
provided pursuant to this Disclosure Certificate, stating the date it was
provided and listing all the Repositories to which it was provided.
SECTION 4. CONTENT OF ANNUAL REPORTS. The Issuer's Annual Report shall
contain or incorporate by reference the following:
1. The audited financial statement of the Issuer for the prior fiscal year, prepared in
accordance with generally accepted accounting principles as promulgated to apply to governmental
entities from time to time by the Governmental Accounting Standards Board. If the Issuer's audited
OR 169640;1 )~ -2
financial statements are not available by the time the Annual Report is required to be filed, the
Annual Report shall contain unaudited financial statements in a format similar to the financial
statements contained in the final Official Statement, and the audited financial statements shall be
filed in the same manner as the Annual Report when they become available.
2. Financial information and operating data of the City for the preceding fiscal year of
the type included in the Official Statement.
3. Any or all of the items listed above may be incorporated by reference from other
documents, including official statements of debt issues of the Issuer or related public entities, which
have been submitted to each of the Repositories or the Securities and Exchange Commission. If the
document incorporated by reference is a final official statement, it must be available from the
Municipal Securities Rulemaking Board. The Issuer shall clearly identify each such other document
so incorporated by reference.
SECTION S. REPORTING OF SIGNIFICANT EVENTS.
(a) Pursuant to the provisions of this Section 5, the Issuer shall give, or cause to be given,
notice of the occurrence of any of the following events with respect to the Bonds, if material:
1. principal and interest payment delinquencies;
2. non-payment related defaults;
3. modifications to rights of Bondholders;
4. optional, contingent or unscheduled bond calls;
5. defeasances;
6. rating changes;
7. adverse tax opinions or events affecting the Tax-exempt status of the Bonds;
8. unscheduled draws on the debt service reserves reflecting financial
difficulties;
9. unscheduled draws on credit enhancements reflecting financial difficulties;
10. substitution of credit or liquidity providers, or their failure to perform;
11. release, substitution or sale of property securing repayment of the Bonds.
0 oR169640;1 F-3
(b) Whenever the issuer obtains knowledge of the occurrence of a Listed Event, the Issuer
shall as soon as possible determine if such would constitute material information for Bondholders,
provided, that any event under subsection (a), (4), (5) or (6) will always be deemed to be material.
(c) If the Issuer determined that knowledge of the occurrence of a Listed Event would
be material, the Issuer shall promptly file a notice of such occurrence with the Municipal Securities
Rulemaking Board and each State Repository, if any. Notwithstanding the foregoing, notice of
Listed Events described in subsections (a)(4) and (5) need not be given under this subsection any
earlier than the notice (if any) of the underlying event is given to Bondholders pursuant to the
Resolution.
SECTION 6. TERMINATION OF REPORTING OBLIGATION. The Issuer's
obligations under this Disclosure Certificate shall terminate upon the defeasance, prior redemption
or payment in full of all of the Bonds.
SECTION 7. DISSEMINATION AGENT. The Issuer may, from time to time, appoint
or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure
Certificate, and may discharge any such Agent, with or without appointing a successor
Dissemination Agent.
SECTION 8. AMENDMENT; WAIVER. Notwithstanding any other provision of this
Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this
Disclosure Certificate may be waived, if such amendment or waiver is supported by an opinion of
counsel expert in federal securities laws, to the effect that such amendment or waiver would not, in
and of itself, cause the undertakings herein to violate the Rule if such amendment or waiver had been
effective on the date hereof but taking into account any subsequent change in or official
interpretation of the Rule.
SECTION 9. ADDITIONAL INFORMATION. Nothing this Disclosure Certificate shall
be deemed to prevent the Issuer from disseminating any other information, using the means of
dissemination set forth in this Disclosure Certificate or any other means of communication, or
including any other information in any Annual Report or notice of occurrence of a Listed Event, in
addition to that which is required by this Disclosure Certificate. If the Issuer chooses to include any
information in any Annual Report or notice of occurrence of a Listed Event in addition to that which
is specifically required by this Disclosure Certificate, the Issuer shall have no obligation under this
Agreement to update such information or include it in any future Annual Report or notice of
occurrence of a Listed Event,
SECTION 10. DEFAULT. In the event of a failure of the Issuer to comply with any
provision of this Disclosure Certificate, any Bondholder may take such actions as may be necessary
and appropriate, including seeking mandate or specific performance by court order, to cause the
Issuer to comply with its obligations under this Disclosure Certificate. A default under this
Disclosure Certificate shall not be deemed an Event of Default under the Resolution, and the sole
0 OR16964011 F-4
remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with this
Disclosure Certificate shall be an action to compel performance.
SECTION 11. DUTIES, IMMUNITIES AND LIABILITIES OF DISSEMINATION
AGENT. The Dissemination Agent shall have only such duties as are specifically set forth in this
Disclosure Certificate, and the Issuer agrees to indemnify and save the Dissemination Agent, its
officers, directors, employees and agents, harmless against any loss, expense and liabilities which
it may incur arising out of or in the exercise of performance of its powers and duties hereunder,
including the costs and expenses (including attorneys fees) of defending against any claim of
liability, but excluding liabilities due to the Dissemination Agent's negligence or wilful misconduct.
The obligations of the Issuer under this Section shall survive resignation or removal of the
Dissemination Agent and payment of the Bonds.
SECTION 12. BENEFICIARIES. This Disclosure Certificate shall inure solely to the
benefit of the Issuer, the Dissemination Agent, the Underwriter and the Bondholders, and shall create
no rights in any other person or entity.
Dated as of 1, 1999.
•
CITY COMMISSION OF THE CITY OF
TAMARAC, FLORIDA
RI -A
Joe Schreiber, Mayor
0 OR169640;1 F"S
•
C -I
EXHIBIT A
NOTICE TO REPOSITORIES OF FAILURE TO FILE ANNUAL REPORT
Name of Issuer: City of Tamarac, Florida
Name of Bond Issue: $9,000,000 City of Tamarac, Florida
Sales Tax Revenue Bonds, Series 1999
Date of Issuance: , 1999
NOTICE IS HEREBY GIVEN that the Issuer has not provided an Annual Report with respect to the
above -named Bonds as required by the Bond Resolution. The Issuer anticipates that the Annual
Report will be filed by
Dated:
CITY COMMISSION OF THE CITY OF
TAMARAC, FLORIDA
Mayor
OR169640-11
EXHIBIT B
• Nationally Recognized Municipal Securities Information Repositories approved by the
Securities and Exchange Commission:
Bloomberg Municipal Repository
P.O. Box 840
Princeton, NJ 08542-0840
Internet address: MUNIS@bloomberg.doc
(609) 279-3200
FAX (609) 279-3235 (609) 279-5963
Contact: Dave Campbell
Thomson NRMSIR
Secondary Market Disclosure
395 Hudson Street, 3rd Floor
New York, NY 10014
Internet address: Disclosure@muller.com
(212) 807-5001
FAX (212) 989-2078
Contact. Thomas Garske
DPC Data, Inc.
One Executive Drive
• Fort Lee, NJ 07024
(201) 346-0701
FAX (201) 947-0107
JJ Kenny Information Services
The Repository
65 Broadway, 16th Floor
New York, NY 10006
(212) 770-4568
FAX (212) 797-7994
Contact: Joan Horai, Repository
A list of the names and addresses of all designated NRMSIRs as of any date may currently
be obtained by calling the SEC's Fax on Demand Service at (202) 942-8088 and requesting
document number 0206.
OR 169640:1