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R-96-902 i ¡, .:~ \ - , . . . '.- ~ . e " . .. RESOLUTION NO. 902 A RESOLUTION SUPPLEMENTING RESOLUTION NO. 900 OF THE CITY OF CLERMONT, FLORIDA, ADOPTED FEBRUARY 27, 1996, WHICH PROVIDED FOR THE ISSUANCE BY THE CITY OF WATER AND SEWER REVENUE AND, REFUNDING BOND' ANTICIPATION NOTES, SERIES 1996; FOR THE PURPOSE OF CANCELING AUTHORITY FOR THE ISSUANCE OF $7,990,000 PRINCIPAL AMOUNT OF THE SERIES 1996 NOTES; DESIGNATING THE SERIES 1996 NOTES FOR THE EXCEPTION CONTAINED IN SECTION' 265 OF THE INTERNAL REVENUE CODE OF 1986 WHICH DENIES FINANCIAL INSTITUTIONS ANY DEDUCTION FOR INTEREST EXPENSE ALLOCABLE TO TAX-EXEMPT OBLIGATIONS; FIXING THE DATE, MATURITY AND' INTEREST RATE FOR THE' SERIES 1996 NOTES; ·ACCEPTING THE DISCLOSURE STATEMENT OF THE BOND PURCHASER AND AUTHORIZING A NEGOTIATED SALE OF THE SERIES 1996 NOTES AND THE EXECUTION AND DELIVERY OF A PURCHASE CONTRACT WITH RESPECT TO THE SERIES 1996 NOTES ; RATIFYING AND CONFIRMING THE DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT WITH RESPECT TO THE SERIES 1996 NOTES AND AUTHORIZING A· FINAL OFFICIAL ST A TEMENT WITH RESPECT THERETO; APPOINTING THE REGISTRAR AND PAYING AGENT FOR THE SERIES 1996 NOTES; AND' PROVIDING AN EFFECTIVE DATE. BE ITRESOL VED BY THE CITY COUNCIL OF THE CITY OF CLERMONT, FLORIDA, as follows: SECTION 1. ,DEFINITIONS. The terms used in this resolution shall have the respective meanings ,assigned to them in the Original Instrument and in this Section, unless the text hereof clearly otherwise requires:' ' "City' Council" shall mean ,the City Council of the Issuer. "Note Counsel" shall mean Foley & Lardner, Jacksonville, Florida, note counsel to the Issuer with respect to the isswance of the Series 1996 Notes. "Original Instrument" shall mean Resolution No. 900 adopted by the City Council on February 27, 1996, which provided for the issuance by the Issuer of the Series 1996 Notes. "Preliminary Official S,tatement" shall mean the preliminary official statement relating to the Series 1996 Notes attached hereto as Exhibit A. ~ . e . '. e e "Purchase Contract" shall mean the Contract of Purchase attached hereto as Exhibit B. "Purchaser" shall mean William R. Hough & Co., the purchaser of the Series 1996 Notes. SECTION 2. AUTHORITY FOR THIS RESOLUTION, This resolution is adopted pursuant to the provisions of'the Act and other applicable provisions of law. SECTION 3. FINDINGS. It is hereby found and determined that: (A) On February 27, 1996, the City Council duly adopted the Original Instrument for the purpose of authorizing the refunding of the Refunded Obligations and the acquisition and construction of the Project and the issuance of the Series 1996 Notes to pay the cost thereof. The Series 1996 Notes are issued in anticipation of the receipt of the proceeds to be derived by the Issuer from the proposed sale of its Water and Sewer Revenue and Refunding Bonds, Series 2000 (the "Series 2000 Bonds"). Concurrently with the adoption of the Original Instrument, the Issuer adopted a resolution authorizing the issuance of the Series 2000 Bonds. (B) The aggregate principal amount of the Series 1996 Notes to be issued has been determined to be $7,990,000, and it is in the best interest of the Issuer that authorization for the issuance of the remaining $510,000 principal amount of the Series 1996 Notes be cancelled. (C) The Issuer desires to qualify the Series 1996 Notes for the exception contained in Section 265(b)(3) of the Code to the provisions contained in Section 265(b) of the Code which deny financial institutions any deduction for interest expense allocable to tax-exempt obligations acquired after August 7, ,1986, and to designate the Series 1996 Notes for the purpose of qualifying for such exceptiòn; and the City Council does hereby find and determine that the aggregate face amount of all qualified tax-exempt obligations (excluding private activity bonds, as defined in Section 141 of the Code, other than qualified 501(c)(3) bonds, as defined in Section 145 of the Code), including the Series 1996 Notes, issued by 'or on behalf of the Issuer (and all subordinate entities thereof) during the 1996 calendar year is not expected to exceed $10,000,000, and that as of the date hereof, no tax-exempt obligations issued or authorized to be issued by or on behalf of the Issuer (and all subordinate entities thereof) during the 1996 calendar year, other than the Series 1996 Notes, have been designated by the Issuer for the purpose of qualifying for such exception. (D) It is necèssary, appropriate and in accordance with Sections 2.01 and 2.02 of the Original Instrument that the City Council adopt this Supplemental Resolution at this time in order to fix the date of the Seri,es 1996 Notes and their maturity date, interest rate and other terms, preparatory to the sale thereof ~o the Purchaser as herein authorized and provided. -2- """ . . . e e " " (E) The Issuer is advised that due to the present volatility of the market for tax-exempt publiè obligations such as the Series 1996 Notes, it is in the best interest of the' Issµer to sell the Series 1996 Notes by a negotiated sale, allowing the Issuer to enter sùch market at the most advantageous time, rather than at a specified advertised future date, thereby permitting the Issuer to obtai~ the best possible price, interest rate and other terms for the Series 1996 Notes and, accordingly, the City Council does hereby find and determine that it is in the best financial interest of the Issuer that a negotiated sale of the Series 1996 Notes be authorized. The Purchaser has offered to purchase the Series 1996 Notes and has submitted to the Issuer the Purchase Contract expressing the terms of such offer; and the City Council does hereby find and determine that it is in the best financial interest of the Issuer that the terms expressed in the Purchase Contract be accepted by the Issuer and that the Mayor and the Clerk be authorized to execute its acceptance on the ~urchase Contract. (F) It is appropriate that the Issuer ratify and confirm the distribution of the Preliminary Official Statement for the purpose of acquainting potential investors with pertinent information with respect to the Issuer and the Series 1996 Notes and that the Issuer authorize the distribution of a final official statement prior to or contemporaneously with the issuance and delivery of the Series 1996 Notes. For this purpose, it is appropriate that the preparation and distribution of a finà1 official statement be authorized in substantially the form of the Preliminary Official Statement, the final form thereof to be approved and executed by the Mayor and the City Manager at any time at or prior to the issuance of the Series 1996 Notes. (G) It is necessary and appropriate that the Issuer appoint a registrar and a paying agent for the Series 1996 Notes, and the institution hereinafter named is acceptable to the Issuer; and it appears to the City Council that the same is qualified to serve as Registrar and Paying Agent for the Series 1996 Notes in accordance with the terms of the Original Instrument. SECTION 4. CANCELLATION OF AUTHORITY FOR ISSUANCE OF POR~ION OF SERIES 1996 NOTES. Authority for the issuance of $510,000 principal amoùnt of the Series 1996 Notes is hereby cancelled and rescinded. SECTION 5. DESIGNATION OF SERIES 1996 NOTES. For purposes of qualifying the Series 1996 Notes for the exception contained in Section 265(b)(3) of the Code to the provisions of Section 265(b)of the Code which deny financial institutions any deduction for interest expense allocable to tax-exempt obligations acquired after August 7, 1986, the Issuer hereby designates the Series 1996Notes for such exception. SECTION 6. SPECIFICATIONS. The Series 1996 Notes shall be dated as of March 1, 1996, shall be in denominations of $5,000 or iritegral multiples thereof, and shall bear interest at such rates, payable on such dates, mature on such date and have such other terms as are set forth in the Purchase Cont~act. SECTION 7, SALE OF THE SERIES 1996 NOTES; AUTHORIZATION OF EXECUTION OF PURCHASE CQNTRACT. The Purchaser having filed with the City Council -3- '" e . " .. the disclosure statement required by Section 218.385, Florida Statutes, 'as amended, a copy of , which is attached hereto as an exhibit to the Purchase Contract, the Series 1996 Notes are hereby , sold and awarded to the Purchaser at the price and on such other terms and conditions stated in the Purchase Contract. The Mayor and the Clerk are hereby authorized to execute the Issuer's acceptance of the Purchase Contract, and said officers and the other officers, agents and employees of the Issuer are hereby authorized and directed to conclude the issuance and delivery of the Series 1996 Notes in accordance with the provisions of the Purchase Contract. · SECTION 8. RATIFICATION AND CONFIRMATION OF DISTRIBUTION OF PRELIMINARY OFFICIAL STATEMENT AND AUTHORIZATION OF FINAL OFFICIAL STATEMENT. The delivery of the Preliminary Official Statement to the Purchaser and the distribution thereofby the Purchaser is hereby ratified and confirmed, and a final official statement in substantially the form of the Preliminary Official Statement, with such omissions, insertions and variations as may be necessary and/or desirable and approved by the Mayor and the City Manager prior to the release thereof, is hereby authorized to be delivered by the Issuer to the Purchaser for distribution prior to or contemporaneously with the issuance and delivery of the Series 1996 Notes. The Mayor and the City Manager are hereby authorized to evidence . the Issuer's approval of the final official statement by endorsement thereof upon one or more copies, and approval of all such omissions, insertions and variations may be presumed from such endorsement upon any copy of such final official statement. Note Counsel is hereby directed to furnish to the Division of Bond Finance of the State Board of Administration of the State of Florida a copy of the final official statement, a notice of the impending sale of the Series 1996 Notes and the other information required by Section 218.38, Florida Statutes, as amended, within the ,appropriate time periods specified by such section. · SECTION 9. REGISTRAR AND PAYING AGENT. First Union National Bank of Florida, a national banking association, Jacksonville, Florida, is hereby appointed as Registrar and paying Agent under the Original Instrument, to serve as Registrar and Paying Agent for the Series.1996 Notes; and the Mayor and the Clerk are hereby authorized to execute and deliver on behalf of the Issuer a registrar and paying agency agreement in a form whÍch shall be approved by the IsSuer's attorney. SECTION 10. AUTHORIZATION OF EXECUTION OF OTHER CERTIFICATES AND OTHER INSTRUMENTS. The Mayor, the City Manager and the Clerk are hereby authorized and directed, either alone or jointly, under the official seal of the Issuer, to execute and deliver certificates of the Issuer certifying such facts as the Issuer's attorney, counsel to the Purchaser or Note Counsel shall require in connection with the issuance, sale and delivery of the Series 1996 Notes, and to execute and deliver such other instruments as shall be necessary or desirable to perform the Issuer's obligations under this resolution, the Original Instrument and the Purchase Contract and to consummate the transactions contemplated hereby and thereby. , SECTION 11. ORIGINAL INS~UMENT IN FULL FORCE AND EFFECT. Except as hereby supplemented, the Original Instrument shall remain in full force and effect. · -4- :~~~ e . . SECTION 12. REPEALING CLAUSE. All resolutions or parts thereof in conflict herewith are hereby superseded and repealed to the extent of such conflict. SECTION 13. EFFECTIVE DATE. This resolution shall take effectimmediately upon its adoption. PASSED, APPROVED AND ADOPTED this 7th day of March, 1996. CITY OF CLERMONT, FLORIDA mô?~ Its Mayor (OFFICIAL SEAL) " ," ,.' ... .,;:/,../\ .... \./(,)- :/ ~ ,ATTEST: ".... ' :,. I' . '-:' g.r , " ~ ~)., . J/ .\>r,_ I cit~/ clèf~ .,..~,. t:. ." 'f:!........ fj. _.._'..__,~ .~?...,~':;.,~~!o.~~ IDOCSISOFTI3361 ,2103/06/96 3:44pm e1 776/104IJAXA 10 IJHM:gt . -5- .-~ · · · i IDOCSISOFTl3361 ,2103/06/96 3:44pm 81776/1 041JAXA 10IJHM:gt e EXHIBIT A Preliminary Official Statement e "J ~ . . . " IDOCSISOFTI3361,2 :03/06/96 3:44pm 61776/1 041JAXA 10 IJHM:gt ~~--'- ~~,,~;?, e .' EXHIBIT B Purchase Contract (To be provided by the Purchaser) n J. ,~!~ll ~~ ;;. ~)~' ,,~:~ '. . I. . /' I '~ '. . : ./ NEW ISSUE RATINGS: UNRATED In the opinion of Foley & Lardner, Note Counsel, under existing law, and assuming compliance with certain covenants in the Resolution described herein, interest on the Series 1996 Notes is excluded from gross income for federal income tax purposes, and the ,Series 1996 Notes and the interest thereon are exempt from taxation under the laws of the State of Florida~ except as to estate taxes and taxes on interest, income or profits on debt obligations owned by corporations, as defined in Chapter 220, Flòrida Statutes, as amended. Furthermore, assuming the City can recertify certain representations and findings made by the City in the Resolution upon the issuance of the Series 1996 Notes, the Series 1996 Notes are "qualified tax-exempt obligations" within the meaning of Section 265(b) (3) of the Internal Revenue Code of 1986, as amended. See, however, "TAX MATTERS" ~erein for a description of certain federal minimum and other special taxes that ~ay affect the tax treatment of interest on the Series 1996 Notes. City of Clermont, Florida $8,060,000* Water and Se~er Revenue and Refunding Bond Anticipation Notes series· 1996 (BANK QUALIFIED) Dated: March 1, 1996 Due: December 1, 2000 The City of Clermont, Florida, Water and Sewer Revenue and Refunding Bond Anticipation Notes, Series 1996 (the "Series 1996 Notes") will be issued as fully registered notes in principal denominations of $5,000 or any integral multiples thereof. Interest on the Series 1996 Notes is payable semi-annually, commencing June 1, 1996, and each December 1 and June 1 thereafter by check or draft of· First Union National Bank of Florida, with its designated corporate trust office in Jacksonville, Florida, as Bond Registrar and Paying Agent, mailed to the Registered OWner thereof at the address shown on the registration books kept by the Bond Registrar on the 15th day of the'month next preceding each interest payment date (the ,iRecord Date"), provided, however ,that at the written request of any Registered Owner of at least $1,000,000 aggregate principal amount of the· Series 1996 Notes, interest may be payaJ:::¡le by wire' transfer to the bank account on file with the Paying Agent ascf the applicable Record Date. Principal of the Series 1996 Notes wil,l' b~, payable upon presentation and surrender of'the Series 1996 Notes at the designated corporate trust office of the Paying Agent. The Series 1996 Notes will not be subject to redemption prior to their stated maturity. The Series 1996 Notes will be issued by the City of Clermont, Florida (the "Ci:ty") to provide funds for the .following: (i) retirement of certain outstanding obligations of the City; (ii) acquisition, construction and installation of certain capital improvements to the City's water and sewer system (the "Project"); and (iii) costs of issuance related to the Series 1996 Notes. The Series 1996 Notes are issued in anticipation of the receipt by the City of the dproceeds from the proposed sale of not exceeding $17,000,000 of its Water and Sewer Revenue and Refunding Bonds, Series 2000 (the "Series 2000 Bonds"). * Preliminary, ~ubject to change. ~ 'i - . . \,)' ;)~\ . . The Series 1996 Notes are limited obligations of the City payable solely from and secured by a lien upon and pledge of (i) the proceeds to be derived from the sale of the City's proposed Series 2000 Bond issue, (ii) the proceeds to be derived by the City from the sale of bond anticipation notes issued to extend and renew indebtedness evidenced by the Series 1996 Notes, (iii) the Pledged Revenues (as defined in the Note Resolution), which Pledged Revenues include the Net Revenues de~ived from the operation of the City's Water and Sewer System and the Public Service Taxes, and (iv) until applied in accordance with the provisions of the Resolution, the prôceeds of, the Series 1996 Notes and all moneys, including investments thereof, in certain of the funds and accounts established pursuant to the Resolution, all in the manner and to the extent described in the Resolution (collectively, the "Pledged Funds"). The lien on the Net Revenues is junior and subordinate to certain other City debt. The Series 1996 Notes and the interest thereon shall not be and shall not constitute' an indebtedness of the City or of the State of Florida or any political subdivision thereof within the meaning of any Constitutional , statutory, charter or other limitation of indebtedness, and neither the full faith and credit nor the taxing powers of the State of Florida or the City are pledged as security for the payment of the principal of, redemption premium, if any, or interest on the Series 1996 Notes and no holder or holders of any Series 1996 Notes shall ever have the right to compel the exercise of the ad valorem taxing powers of the City, or taxation in any form of any real property therein to pay the Series 1996 Notes or the interest thereon. . This cover page contains certain information for quick reference only. It is not a summary of the issue. Investors must read the entire Official Statement to obtain information essential to making an informed investment decision. $ ___% Term Notes due December 1, 2000 - Price % - Yield The Series 1996 Notes are offered when, as and if issued and delivered to the Underwriter, subject to prior sale"withdrawal or modification of the 'offer with written notice and .to the approval of legality by Foley & Lardner, Jacksonville, Florida, Note Counsel to the City, and certain other conditions. Certain legal matters will be passed on for the City by its City Attorney, Leonard Baird, Jr., Esquire. Certain legal matters will be passed upon for the Underwriter by its counsel, Bryant, Miller and Olive, P.A., Tampa, Florida. It 'is expected that the Series 1996 Notes in definitive form will be available for delivery in New York, New York, on. or about March , 1996. WILLIAM R. HOUGH & CO. Dated: February 1996 - .. - . . í~· . . " CITY OF. CLERMONT, FLORIDA 1 Westgate Plaza Clermont, Florida 34711 CITY COUNCIL Robert A. Pool, Mayor Lester Cole Kenneth E. Norquist John Sargent Ann K. Dupee , CITY OFFICIALS Wayne Saunders, city Manager Joseph E. Van Zile, Finance Director and city Clerk CITY ATTORNEY Leónard,Baird, Jr., Esquire NOTE COUNSEL Foley & Lardner Jacksonville, Florida FINANCIAL ADVISOR Public Financial Management, Inc. Fort Myers, Florida FEASIBILITY CONSULTANT Hartman & Associates, Inc. Orlando, Florida 1" ~ · · · ¡ ~ . · No dealer, broker, salesperson or other person has been authorized by the city or the Underwriter to give any information or to make any representations with respect to the Series 1996 Notes other than as contained herein, and, if given or made, such information or representations must not be relied upon as having been authorized by any of the foregoing. This Official Statement is not to be construed as a contract with the purchasers of the Series 1996 Notes. This Official· Statement does not constitute an offer to sell or the solicitation of an offèr to buy, nor shall there be any sale of the Series 1996 Notes by any person to make such offer, solicitation or sale. The information set forth herein has been obtained fròm the City, public documents, records and other sources which are believed to be reliable but is not guaranteed as to accuracy or completeness, by, and is not to be construed as a representation of, the City or the Underwriter. The information and expressions of opinion stated herein are subject to change without notice, and neither .the delivery of this Official Statement nor any sale made hereunder shall create, under any circumstances, any implication that there has been no change in the affairs of the City since the date hereof or the earliest date as of which such information is given. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE SERIES 1996 NOTES AT LEVELS ABOVE THAT WHICH MIGHT~OTHERWISEPREVAIL IN ,THE. OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCÐNTINUED AT ANY. TIME. All summaries herein of documents and agreements are qualified in their entirety by reference to such documents and agreements, and all summaries herein of the Series 1996 Notes are qualified in their entirety by reference to the form thereof included in the aforesaid documents and agreements. NO REGISTRATION STATEMENT RELATING TO THE SERIES 1996 NOTES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION (THE "COMMISSION") OR WITH ANY STATE SECURITIES COMMISSION. THE SERIES 1996 NOTES HAVE NOT BEEN APPROVED OR DISAPPROVED BY. THE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON. THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. TABLE OF CONTENTS Page INTRODUCTION 1 ........ PURPOSE OF SERIES, 1996 NOTES . , 2 DESCRIPTION OF THE SERIES 1996 NOTES General . . .'. . . . . . . Negotiability, Registration and Transfer . . . . . 2 2 2 SOURCE OF PAYMENT AND SECURITY FOR THE SERIES 1996 NOTES. . General . .. . . . . . . Prior Lien Obligations Public Service, Taxes . . . . . . . . 3 3 4 5 ..... ....... SCHEDULE OF PUBLIC SERVICE TAX COLLECTIONS Flow of Funds . . . . 6 6 · . . . THE WATER AND SEWER SYSTEM 9 · . . . THE PROJECT . 9 . . . . . i fj'" " · · · 'î~ '. . RATES AND CHARGES FOR THE SYSTEM .................. HISTORICAL AND PROJECTED STATEMENT OF OPERATING RESULTS OF THE WATER AND SEWER SYSTEM . . . . . . . . . . . THE CITY '. . . . . . . . . . . . . . . . . ESTIMATED SOURCES AND USES OF FUNDS . . . .0 . ESTIMATED COMBINED DEBT. SERVICE REQUIREMENTS LEGALITY . . . . TAX MATTERS . .... Federal Tax Matters Florida Tax Matters Original Issue Discount . . . . '. UNDERWRITING . . . .. . . . . . . . . . . . . . SECONDARY MARKET DISCLOSURE ENFORCEABILITY OF REMEDIES . ' . . . . LITIGATION . . . . . " GENERAL PURPOSE FINANCIAL STATEMENTS FINANCIAL ADVISOR ...... ..... . . . . . MISCELLANEOUS . . ....... '. DISCLOSURE REQUIRED BY FLORIDA BLUE SKY. REGULATIONS AUTHORIZATION OF AND CERTIFICATION CONCERNING OFFICIAL STATEMEN'¡' . . . . . .. . . . . . ....... '. .......... 10 12 13 13 14 . 14 14 14 16 16 17 17 17 17 18 18 18 18 19 APPENDIX A -- GENERAL INFORMATION CONCERNING CITY OF CLERMONT, FLORIDA AND LAKE COUNTY" . APPENDIX B -- CITY OF CLERMONT, , FLORI~A GENERAL PURPOSE FINANCIAL STATEMENTS "AND. OTHER INFORMATION .FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1994' , APPENDIX C NOTE RESOLUTION APPENDIX D -- FEASIBILITY REPORT OF HARTMAN &.ASSOCIATES APPENDIX E FORM OF NOTEC0UNSEL'OPINION APPENDIX F FORM OF' CONTINUING DISCLOSURE CERTIFICATE ... .'z . ii l' " · · · ,- ~ I . . OFFICIAL STATEMENT $8,060,000" City of Clermont, Florida Water and Sewer Revenùe and Refunding Bond Anticipation Notes Series 1996 INTRODUCTION The purpose of this Official Stàtement, which includes its cover page and all appendices, is to furnish information with respect to the issuance by the City of Clermont, Florida (the "City") of its Water and Sewer Revenue and Refunding Bond Anticipation Notes, Series 1996 (the "Series 1996 Notes") in the aggregate principal amount of $8,060,000*. The Series 1996 Notes are being-issued under the authority of and in full compliance with the Constitution and iaws of the State of Florida, including Chapter 166, Part II, Florida Statutes, as amended, and other applicable provisions of law. The Series 1996 Notes are being issued more specifically pursuan~ to Resolution No. ., as supplemented, adopted by the City Council of the City (the "City Council") on February _, 1996, which authorized the issuance of Water and Sewer Revenue and Refunding Bond Anticipation Notes in one or more series (the "Original Resolution") an~ a resolution adopted on March , 1996 fixing the details of the Series 1996 Notes (the "Award Resolution"). The Original Resolution and the Award Resolution are collectively referred to herein as the "Note Resolution". The Series 1996 Notes are special, limited obligations of the City payable solely from and secured by a.lien upon and pledge of (i) the proceeds to be derived from the sale of the City's proposed Water and Sewer Revenue and Refunding Bonds, Series 2000 (the "Series 2000 Bonds"), (ii) the proceeds to be derived by the City from the sale of bond anticipation notes issued to extend and renew the indebtedness evidenced by the Series 1996 Notes, (iii) the Pledged Revenues (as defined in the Note Resolution), which Pledged Revenues include the Net Revenues (as further defined and described herein) to be derived from the operation of the City's wate.rand sewer system (the "System") and the Excise Taxes (as further defined and described herein), and. (iv) until applied in accordance with the provisions 01; the Resolution, the proceeds of the Series 1996 Notes and all moneys; including investments thereof, in certain of the funds-and 'accounts established· pursuant to the Resolution, all in the manner and to the extent described in t.he Resolution (collectively, the "Pledged Funds"). Also, the Series 1996 Notes are secured by, until applied in accordance with the provisions of the Note Resolutïon, the proceeds of the Series 1996 Notes and all moneys, including investments thereof, in certain of the funds and .accounts established pursuant to the Resolution, all in the manner and to the extent described in the Note Resolution. Collectively, these sources are referred to as the "Pledged Funds". The lien on the Net Revenues is junior and subordinate to the City's Prior Lien Obligations, as described under the heading "Prior Lien Obligations" herein. .. Preliminary, subject to change. 1 ty ~ . . . ) .~ . ,. Capitalized terms not otherwise defined in this Official Statement shall have the same meanings assigned to such terms in the Note Resolution, a copy of which is attachedheretp 0 as Appendix C. The description of the Series 1996 Notes, the Note Resolution, ,arid certain statutory. provisions as well as the information from various reports and statements contained in. this Official statement are not comprehensive'or ç1efinitive. All references to such documents, reports and statements are qûalified by the actUal cont~nt of such documents, reports and statements, copies of which may be obtained by contacting the Director of Finance, City of Clermont; Florida, 1 Westgate Plaza, Clermont, FL 34711, (904) 394-40aì or during~the offering periòd of the Series 1996 Notes from Public Financial Management, Inc., financial advisor to the City. P~o.SE OF SERIES 1996 NOTES , The series 1996 Notes shaJI be issued by the City to provide funds for the following: (i) retiremen't of the City's outstanding line of credit in the approximate outstanding ,'principal amount of $3,000,000; (ii) acquisition, construction and improvements tö the City's Water and Sewer System; and (iii) costs of issuance related to the Series 1996 Notes. DEScÎÙPTION OF THE SERIES 1996 NOTES General The Series 1996 Notes shall be issued in fully registered form in denominations of $5,000 and integral multiples thereof and shall be dated, shall bear interest (payabl'e semi,,:,annually on June 1 and December 1 of each year commencing June 1, 1996) at the rates per annum and shall mature on the dates and in the amounts, all as set {o~th on the cover page of this Official Statement. Interest on the. Series, 1~96 Notes will be payable by First Union National Bank of Florida, having its designated ,corporate trust office in Jacksonville, Florida, as 'Paying Agent, by ch~ck or draft mailed to the registered owner at the address shown on the registration books of the City maintained by the Paying Agent and Registrar, on the fifteenth day of the month prior to each Interest Payment Date or on the fifteenth ,day -prior to the date notice of redemption is given, whether or not such day is .a business day ("Record Date"), provided that, at the request of any registered owner of at least $1,000,000 in aggregate principal amount of Series 1996 Notes, interest maybe payable by wire transfer to the bank account number, on, file with the' Paying Ag 3nt as of the applicable Record Date. The principal of and premium, if any, on the Series 1996 Notes are payable at maturity or earlier redemption to the registered owner upon presentation and surrender at the designated corporate trust office of the paying Agent. ',' Negotiability, Registration an~Trá~sfer The Series 1996 Notes, 'upon surrender thereof at the office of the Registrar with a written instrumènt'oftransfer satisfactory to the Registrar, duly exec:uted by the Holder thereof or,'such Holder's attorney duly authorized in writing, may, at the option' of. 'the Hõlder thereof, be· exchaI:lged for an equal aggregate principal amount of registered Series 1996 Notes: and.'maturity of any other authorized denominations. ' The Series 1996 Notes issued under the Resolution shall be and have all the quaJ:ities and incidents of negotiable instruments under the laws of the State of Florida, subject to,the p,rovisions for registration and transfer contained'in the Resolution and 'in the Series 1996 Notes. ' Sô long as any of the Series 1996 Notes shall remain 0:uts'tanç1ing, the City' shall cause to be maintained and kept, at the office of the Registrar, books for the registration and transfer of the Series 1996 Notes." , 2 '~ \" . . . ;- Î . . Each Series 1996 Note shall be transferable only upon the books of the city, at the office of the Registrar, under such reasonable regulations as the City may prescribe, by the Holder thereof in person or by such Holder's attorney duly authorized in writing upon surrender thereof together with a written instrument of transfer satisfactory to the Registrar duly executed and guaranteed by the Holder or such Holder's duly authorized attorney. Upon the transfer of any such Series 1996 Note, the City shall issue, and cause to be authenticated, in the name of the transferee a new Series 1996 Note or Notes of the same aggregate principal amount and maturity as the surrendered Series 1996 Note. The City, the Registrar and any Paying Agent or fiduciary of the City may deem and treat the person in whose name any Outstanding Series 1996 Note shall be registered upon the books of the City as the absolute owner of such Series 1996 Note, whether such Series 1996 Note shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal or Redemption Price, if applicable, and interest on such Series 1996 Note and for all other purposes, and all such payments so made to any such Holder or upon such Holder's order shall be valid and effectual to satisfy and discharge the liability upon such Series 1996 Note to the extent of the sum or sums so paid and neither the City nor the Registrar nor any Paying Agent or other fiduciary of the City shall be affected by any notice to the contrary. SOURCE OF PAYMENT AND SECURITY FOR THE SERIES 1996 NOTES General The principal of, premium, if any, and interest on the Series 1996 Notes are payable solely from and are secured by a lien on and pledge of (i) the proceeds to be derived by the City from the sale of its proposed Water and Sewer Revenue and Refunding Bonds, Series 2000 (the "Bonds"), (ii) the proceeds to be derived by the City from the sale of bond anticipation notes issued to extend and renew the indebtedness evidenced by the Notes, if any, (iii) the Pledged Revenues (as defined in the Note Resolution). The Pledged Revenues include the Net Revenues (as further defined and described below) to be derived from the operation of the Issuer's water and sewer system (the "System"), and the Excise Taxes (as further defined and described herein). Also, the Series 1996 Notes are secured by, until applied in accordance with the provisions of the Note Resolution, the proceeds of the Series 1996 Notes and all moneys, including investments thereof, in certain of the funds and accounts established pursuant to the Note Resolution, all in the manner and to the extent described in the Note Resolution. The lien on the Net Revenues portion of the Pledged Funds is junior and subordinate to the City's Prior Lien Obligations, as described under the heading "Prior Lien Obligations" hereof. The Series 1996 Notes shall not be and shall not constitute an indebtedness of the City or the State of Florida or any political subdivision thereof within the meaning of any Constitutional, statutory, charter or other limitation of indebtedness, and neither the full faith and credit nor the taxing power of the City, the state of Florida, or any political subdivision thereof, are pledged or obligated as security for the payment of the principal of or interest on any Series 1996 Notes. The holders of the Series 1996 Notes shall have no right to compel the exercise of the ad valorem taxing power of the City or taxation in any form of real property therein to pay the Series 1996.Notes or the interest thereon. . As defined in the Note Resolution, "Net Revenues" means the System's Gross Revenues less Operating Expenses. The Note Resolution defines "Gross Revenues" to mean all income and moneys, excluding certain assessments and. Impact Fees, received by the City from the Rates (as defined in the Note Resolution), or otherwise received by the City or accruing to the City in the management and operation of the System, calculated 3 ì " . . . .. . . in accordance with generally accepted accounting principles employed in the operation of public utility systems similar to the System, including, without limiting the generality of the foregoing, all earnings and income derived from the investment of moneys under the provisions of the Note Resolution which are transferred to the Revenue Fund as provided in the Note Resolution. The Note Resolution defines "Operating Expenses" to mean the City's expenses for operation, maintenance, repairs and replacements with respect to the system and shall include, without limiting the generality of the foregoing, administration expenses, insurance and surety bond premiums, the fees of any rebate compliance service or of note counsel relating to compliance with the provisions of Section 148 of the COdeì legal and engineering expenses, ordinary and current rentals of equipment, or other property, refunds of moneys lawfully due to others, payments to others for disposal of sewage or other wastes, payments to pension, retirement, health and hospitalization funds, and any other expenses required to be paid fo'r or with respect to proper operation or maintenance of the System, all to the extent properly attributable to the system in accordance with generally accepted accounting principles employed in the operation of public utility systems similar to the System, and disbursements for the expenses, liabilities and compensation of any Paying Agent or Registrar under the Note Resolution, but does not include any costs or expenses in respect of original construction or improvement other than expenditures necessary to prevent an interruption or continuance of an interruption of the Gross Revenues or minor capital expenditures necessary for the proper and economical operation or maintenance of the System, or any provision for interest, depreciation, amortization or similar charges. The Note Resolution defines the "Excise Taxes" to mean the proceeds to be derived by the City by reason of its levy and collection of its Public Service Tax. "Public Service Tax" is defined to mean the excise tax levied and collected by the City on every purchase of electricity, metered or bottled gas (natural, liquified, petroleum gas or manufactured), water service, and telecommunication service within the corpòrate territorial limits of the Issuer pursuant to the provisions of [Ordinan~e No. 156 duly enacted by the Issuer on September 24, 1957, as amended and supplemented, pursuant to] [Chapter 21 of the City's Code of Ordinances, as amended, enacted in àccordance with] Section 166.231, Florida Statutes, as amended, formerly Section 167.431, Florida Statutes. The proceeds of, the sale of the Series 1996 Notes shall be and constitute trust funds for the purposes provided in the Note Resolution and there is a lien upon such money, until so applied, in favor of the Holders of the Series 1996 Notes; The City in the Note Resolution has covenanted and agreed with the holders of the Series 1996 Notes that it will not hereafter issue any additional obligations payable from the Pledged .Funds or any portion thereof having a lien superior to. or on a parity with the Series 1996 Notes. Prior Lien Obligations The lien in favor of the holders of the Series 1996 Notes on the Net Revenues is junior, subordinate and inferior in every respect to the lien thereon securing (i) the indebtedness and other obligations of the City under and pursuant to that certain Loan Agreement dated as of July 1, 1993, among NationsBank of Florida, N.A., as trustee, the City of Arcadia, Florida, and the City which is currently outstanding in the aggregate principal amount of $3,000,000 (the "Arcadia Loan") and·~ (ii) the obligation to pay any amounts that may become due under and pursuant tó Sections 3(C), 4 or 5 of that certain First Supplemental Loan Agreement, dateq as of July 1, 1993', ,between Sun Bank, National Association, as trustee, Lane Gilchrist,. Mayor, City of Gulf Breeze, as 4 'ì .. \' . . administrator, and the city (the "Gulf Breeze Loan") (collectively, the Arcadia Loan and the Gulf Breeze Loan and referred to herein as the "Prior Lien . Obligations" ) . Public service Taxes Section 166.231, Florida Statutes, as amended, authorizes any Florida municipality to levy a tax on the purchase within such municipality of electricity, metered or bottled gas (natural, liquid petroleum gas, or manufactured), water service, as well as other services defined by ordinance competitive with those specifically enumerated above. Currently, the tax on the foregoing services may not exceed ten percent (10%) of the payments received by the sellers of such utilities service from purchasers (except in the case of fuel oil for which the maximum tax is four cents per gallon). In addition, municipalities may levy a tax on purchases within the municipality of telecommunications service which originate and terminate in the State of Florida, at a rate of not to exceed seven percent (7%) of the total amount charged. "Telecommunications service" includes telephone, telegram or telegraph, pages, "beepers," and any other form of mobile communication. ' .The purchase of gas or fuel oil by a utility for resale or for use as a fuel in the generation of electricity or the purchase of fuel oil or kerosene for use in aircraft or internal combustion engines are exempt from the levy of such utilities tax, as are fuel, adjustment charges and purchases'by any recognized church in Florida for use exclusively for church purposes. . A municipality may exempt from the utilities tax up to the first 500 kilowatts of electricity per month purchased for residential use. In addition, a municipality may exempt 50% of the purchases subject to the utilities tax for businesses located within an enterprise zone. A municipality may also exempt purchases by the united States Government, the State, or other public bodies from the levy of such tax as well as certain nonprofit corporations, cooperative associations and churches. Utilities taxes must be collected by the seller of the utilities service from purchasers at the time of sale and remitted to the taxing municipality as prescribed by ordinance of the municipality. Municipalities levying utilities taxes must provide written notification to the respective utility companies of any change in the boundaries of the municipality or the rate of taxation levied on such utilities services. As used in the Note Resolution and herein, the term "Public Service Tax" or "Excise Taxes" means the taxes imposed and levied by the City as authorized by Section l66.23i, Florida Statutes. 'l'he City ha~ covenanted in the Note Resolution that it will take all acti'on permitted by law to collect the Public Service Tax proceeds in the amount necessary to meet the requirements under the Note Resolution.' Chapter 21 entitled "Taxation" of the City's Code of Ordinances, as amended, contains the terms of the City's levy of its Public Service Tax (the "Public Service Tax Ordinance"). The City currently levies the Excise Tax at the rate of ten percent (10%) on sales of electricity, metered or bottled gas, and bulk gas. The City also levies a tax on the sale of fuel oil in an amount equal to four cents (4¢) per gallon of fuel oil. Potable water is subject to the Excise Tax in an amount equal to five percent (5%) of the purchase amount. Pursuant to the Public Service Tax Ordinance, the City also levies a seven percent (7%) tax on sales of telecommunication services. For the purpose of compensating the seller of telecommunications services, such seller is allowed one percent (1%) of the amount of the Public Service Tax collected for such telecommunication services due to the City in the form of a deduction from the . 5 , . . . amount collected for remittance. The deduction is allowed as compensation for the keeping of records, collections and remitting thè amounts due. Residential dwelling units are exempted from the electricity portion of the Public Service Tax for the first ninety kilowatt hours per month then such residence will be subject to the tax on the sale of electricity. Also, the Public Service Tax is not charged with respect to any fuel adjustment charge on the bill. Exempted from the City's Public Service Tax are: (a) Federal, state and local governments and agencies thereof, (b) purchase of telecommunication service for hire or resale, (c) purchases of telecommunication services by any recognized church if used exclu~ively for church purposes, and (d) fifty percent (50%) of the purchases by businesses located within the City's enterprise zone. The City Commission is solely responsible for setting or revising the Public Service Tax it levies, which it accomplishes through amendments and supplements to the Public Service Tax Ordinance. The following table sets forth Public Service Tax collections of the City for fiscal years 1990/1991 through 1999/2000. CITY OF CLERMONT SCHEDULE OF PUBLIC SERVICE TAX COLLECTIONS 1990-2000 ( 1) Fiscal Year Electric Telecom Gas Water Total 1990-1991 $ 298,378 $ 99,698 $ 21,202 $ 19,637 $ 438,915 1991-1992 307,795 103,229 27,489 21,104 459,617 1992-1993 342,700 121,832 29,103 22,398 516,033 . 1993-1994 394,,854 146,525 30,441 21,326 593,146 1994-1995 423,691 172,000 30,077 26,307 652,075 1995-1996 (2 ) 454,475 197,800 31,280 27,275 710,830 1996-1997 495,919 227,470 32,531 31,515 787,435 1997-1998 538,475 261,590 33,832 36,110 870,007 1998-1999 582,599 300,829 35,185 41,206 959,819 1999-2000 627,148 345,953 36,593 46,861 1,056,555 (1) Source: City of Clermont, Finance Department; Fiscal Year 1990 through 1994 and from audited financial reports of the City'. (2) Projections based upon Flow of Funds '. The City has covenanted and agreed in the Note Resolution to establish with one or more authorized depositories the. following separate funds and accounts: 1. Water and Sewer System Revenue Fund. 2. Excise (Public Service) 'Taxes Fund. 3. Water and Sewer Revenue Bond Anticipation Notes Payment Account.. ' 4. Water and Sewer System Impact Fees Fund~ 5. Water and Sewer System Rate Stabilization Fund. 6. Water and Sewer Revenue Bond Anticipation Notes Rebate Fund. . 6 'I' " . -' The City may establish by supplemental resolution such other funds and accounts as it shall deem necessary or advisable. · The following summarizes the flow of funds set forth in the Note Resolution (additional defined terms- as defined in the Note Resolution): (A) Revenues. Whenever, from time to time, at any time the Net Revenues shall have been applied sufficiently for minimum compliance with the covenants, requirements and provisions of the documents relating to the Prior Lien Obligations (with the required deposits for the Prior Lien Obligations to be made monthly), the balance of any and all Net Revenues on deposit in the "Revenue Fund" created and established for the benefit of the Arcadia Loan which shall be in excess of the minimum requirements 'for compliance with such covenants, requirements and provisions of the documents shall forthwith, and not less frequently than monthly, be deposited into the Revenue Fund created by the Note Resolution. Whenever the said covenants, requirements and .provisions of the documents relating to the Prior Lien Obligations shall no longer require deposit of Net Revenues for the payment of the Prior Lien Obligations, the City shall deposit all Gross Revenues into the Revenue Fund, promptly upon the receipt thereof. On or before the last day of each month, commencing with the month in which delivery of the Series .1996 Notes shall be made to the purchasers thereof, the moneys in the Reven~e Fund shall be depositèd or credited in the following manner and in the following order óf priority: (1) Operation and Maintenance. Amounts in the Revenue Fund shall be used first to pay reasonable and necessary Operating Expenses for the next ensuing month; provided, however, that no such payment shall be made if such payment of Operating Expenses shall have been provided for pursuant to the provisions of the Arcadia Loan documents or shall be made unless the provisions of Section 5.4 of the Note Resolution in regard to the current Annual Budget are complied with. · (2) Notes Payment Account. Next, the City shall deposit into or credit to the Notes Payment Account such sums as are described in paragraph (D) below. (3) Rate Stabilization Fund. The balance of any moneys remaining in the Revenue Fund after the payments and deposits required by parts (1) and (2) of this paragraph (A) shall be deposited into or credited to the Rate Stabilization Fund. The moneys on deposit in the Rate Stabilization Fund may be transferred, at the discretion of the City, to any other appropriate fund or account of the City and be used by the City for any lawful purpose including, but not limited to·, the payment of the principal of or Redemption Price, if applicable" and interest on the Series 1996 Notes or any Subordipated Indebtedness hereafter issued by the City;. provided, however., that on, or prior to each principal and interest payment date for the Series 1996 Notes (in no event earlier than the fifteenth day of the month next preceding such payment date), moneys in the Rate Stabilization Fund shall be deposited into the Notes Payment Account when the moneys therein are or are expected to be insufficient to pay the principal of and interest on the Series 1996 Notes coming due. (B) Impact Fees. The City shall deposit into the Impact Fees Fund all Available Impact Fees, promptly upon receipt thereof. The moneys in the Impact Fees Fund (i) may, to the extent such moneys may be lawfully used for such purpose, be applied at the discretion of the City (1) for deposit into the Notes Payment Account whenever the moneys on deposit therein, after applying the Net Revenues in the manner provided in paragraph (A) above, are insufficient for the purposes set forth therein, (2) for the acquisition and construction of Expansion Facilities, and (3) for the purchase or redemption of Notes; and (ii) shall, to the extent moneys on deposit in the Notes Payment Account are or are expected to be insufficient to pay the principal of and interest on the Series 1996 Notes · 7 'Ì' . . . - - coming due on any principal and interest payment date for the Series 1996 Notes, be deposited into the Notes Payment Account on or prior to such principal and interest payment date (but in no event earlier than the 15th day of the month next preceding such payment date); provided, however, that the aggregate amount of Available Impact Fees applied by the City pursuant to clauses (i)(l) and (ii) to pay the principal of, Redemption Price, if appli~able, and interest on the Notes shall not exceed the Impact Fees Debt Service Limit; and provided further, however, that the aggregate amount of Available Impact Fees applied by the City pursuant to clause (i)(3) shall never exceed the aggregate Impact Fees Debt Service Components determined for all Notes. (C) Excise (Public Service) Taxes. The City shall deposit all Excise (Public Service) Taxes into the Excise Taxes Fund created by the Note Resolution, promptly upon receipt thereof. On or before the last day of each month, commencing with the month in which the delivery of the Series 1996 Notes shall be made to the purchasers thereof, the moneys in the Excise Taxes Fund shall be deposited or credited in the following manner and in the following order of priority: (1) Notes Payment Account. The City shall deposit into or credit to the Notes Payment Account such sums as are .described in (D) below. (2) Surplus Monevs. The balance of any moneys remaining in the Excise Taxes Fund after the payments and deposits required by subparagraph (1) of this paragraph (8) may be transferred, at the discretion of the City, to any other appropriate fund or account of the City and be used by the City for any lawful purpose, including, but not limited to, the payment of the principal of, Redemption Price, if applicable, and interest on any Subordinated Indebtedness hereafter issued by the City. (D) Notes Payment Account. The City shall deposit into or credit to the Notes Payment Account the proceeds of the Series 1996 Notes representing accrued and capitalized interest. The City shall deposit into or credit to the Notes Payment Account the sum which, together with the balance in said account, shall equal the interest on all outstanding Notes accrued and unpaid and to accrue to the end of the then current calendar month (assuming that a year consists of twelve (12) equal calendar months of thirty (30) days each). Such deposit shall be made by the City (i) first, from moneys' in the Revenue Fund, (ii) second, from moneys in the Rate Stapilization Fund, (iii) third, from moneys in the Impact Fees Fund to the extent provided in Section 4.5(8) of the Note Resolution, and (iv) fourth, from moneys in the Excise Taxes Fund. The City shall adjust the amount of the deposit into the Notes Payment Account not later than the month immediately preceding any Interest Date so as to provide sufficient moneys in the Notes Payment Account to' pay the interest coming due on the Notes on such Interest Date. The City shall also deposit into or credit to the Notes Payment Account from the Pledged Funds and, to the extent necessary, from any other funds of the City derived from sourcès other than ad valorem taxation, the sum required to pay the principal of and Redemption Price"if applicable, on all Outstanding Notes on the maturity date or the redemption date thereof, as the case may be. Moneys on deposit to the credit of the Notes Payment Account shall be applied in the manner provided herein solely for the payment of the principal of or Redemption price, if applicable, and interest on the Notes and shall not be available for any other purpose. Until such moneys shall have been applied to such purpose, there shall be a lien upon all of the moneys of the Notes Payment Account in favor of the Holders of the Notes. after Notes Any funds remaining on deposit to the credit of the Notes Payment Account the principal of, Redemption Price, if applicable, and interest on the shall have been paid in full shall be deposited in the Construction Fund 8 , . . . -~ e~ ar, if the praject shall have been campleted and the Canstructian Fund clased, in the sinking fund far the Bands, whereupan the Nates Payment Accaunt shall be clased. At least ane (1) business day priar to. the date established far payment af any principal af ar interest an the Series 1996 Nates, the City shall withdraw fram the Nates Payment Accaunt sufficient maneys -to. pay such principal ar interest and depasit such maneys with the Paying Agent far the Series 1996 Nates to. be paid. THE WATER AND SEWER SYSTEM The City currently pravides patable water service to. appraximately 3,500 cannectians. The water system is divided into. two. separate service areas defined as the "East System" and the "West System". The West System is the older af the two. systems and serves primarily thase custamers within the immediate City limits cansisting af appraximately 2,960 (84.5%) af the tatal water custamers. The East System resulted fram an effart to. efficiently expand the water service area and accemmedate anticipated grewth east ef the City. This was accemplished threugh the acquisitian af Lake Hills Utilities, Inc., a water supply and distributien system that serves the Greater Hills and Greater Pinessubdivisians. The East System currently pravides service to. appraximately 540 (15.5%) af the tatal cannectians. The water system cansists af three wells and two. elevated starage tanks tagether with 45 miles af water transmissian and distributian facilities. The quality af graundwater dees net require treatment, anly disinfectian. The City currently pravides wastewater service to. appraximately 2,800 cannectians. Unlike the water system, there is anly ane wastewater service area which pravides services to. all custamers, bath within and autside the carparate limits af the City. The wastewater treatment facility currently praviding service has a permitted capacity af 0.95 millian gallans per day (MGD) and is presently aperating' at appraximately 77% capacity. The wastewater system cantains 55 miles af transmissien and gravity sewers, tagether with 27 lift statians. THE PROJECT The City autharizèd Springstead Engineering, Inc. ("Springstead") to. inspect the City's System and pravide an estimate far capital impravements that are required to. meet the demë;l.nds af the anticipatedgrawth and develapment af the City. The City's current System do.es net have the capa'cityno.r is the System suffici.ently' lecated ,to. handle antici.pated grewth. The City also.' retained Hartman & Assaciate~, Inc. t~prepare a feasibility repart far the praject funded by the Series 1996 Nates, whièhrepart is attached hereto. as Appendix D. '" The primary purpase af the praject is to. canstruct the infrastructure necessary tepravide utility services to. the develo.pment areas alo.ng the State Raad 50 carridareast o.f the City and US Highway 27 sauth af the City. As part af the praject, the City has recently acquired Lake Hills Utilities, Inc., a water supply and distributian netwark autside the City baundaries far the east side af the City. The City funded this acquisitian and same additianal impravements thraugh a $3,000,000 line af credit. The City will retire this line af credit with funds pravided by the Series 1996 Nates. The Springstead repart recammends a new 0.75 MGD wastewater treatment facility be canstructed to. serve the east side develapment areas and receive flaw fram the existing treatment plant. By canstructing a new facility, the amaunt af influent pumped to. the City's existing wastewater facility will be reduced, thus increasing the amo.unt af capacity remaining. 9 . . . If ~ springstead has identified the following capital improvement needs and estimated costs: Water utility Improvements: Wells and Pumping Elevated Storage Tank Transmission Lines EDB Water Lines Total Water Improvemants Wastewater Improvements: Treatment Plant Lift Stations List Station Rehabilitation Transmission Lines Generators Gravity Sewers Total Wastewater Improvemants Total Utility Improvements $1,983,909 605,708 523,909 459,005 $3,572,531 $1,907,804 1,526,582 450,054 617,052 200,000 644,889 $5,346,381 $8,918,912 These improvements, as described by Springstead Engineering, together with a further breakdown of the estimates of probable cost and permitting, are contained in the Hartman & Associates, Inc. Feasibility Report attached hereto as Appendix D. RATES AND CHARGES FOR THE SYSTEM The basic rate schedule for water from the City's System is as follows: "Water System West" which consists of all areas served by systems utilizing the 4th Street Well, Seminole Well, and Grand Highway Well: Minimum Rate: $4.85 Additional Use: $1.10 per 1,000 gallons after the first 3,000 gallons "Water System East" which consists of all areas served by systems utilizing Hancock Well and East Wells #1 and #2: Minimum Rate: $9.11 Additional Use: $1.13 per 1,000 gallons 10 · · · \,<" f&.",.,:;'tF.,pL (Q/23/96 eAHT,r'IILLER & OLÍVE P;A. ... 904 3'e,452 [,I~ 14:38 NO.2?b The monthly baaic rate 80hadulø for sewer service from the City's System i8 ae followo: Met,e.x- S 1 ~~ ~~C r~,otor Monthly Base ÇharQ(I 5/8" x 3/4" 1" 1.5" .2" 3" 4" 6" A" 1 2.5 5 8 16 25 50 80 $ 9..30 23.25 46.50 14.40 148.80 232.50 465.00 744.00 The base charge for multiple family dwellings shall be S7.44 per dwelling unit par month. MUltiple family dwellinqs include centrally metered apartments a.nd mobile home parks, but does not inchlde hotels, motels or recreational vehicle parka. In a.ddition to the basic rate listed above, a variable rate is also charged of $1.21 based on each 1,000 gallons of water consumed monthly. The maximum amount of gallons subject to the variable rate charge per month is: CuatomE;'r Tvp~ Gallong Single-Family Multiple-Family Convnercial 16,000 gallons 13,000 gallons per dwelling unit No maximum The, City haa aleo established an automatic annual increase to all the System rates, feee, and charges baged upon the applicable Florida Public service Commi9sion Annual Deflator Index percentage. The Annual Deflator Index percentage amount io currently 1.95\. This annual index adjustment shall first occur automatically on October 1, 1996, and el'1all continue to occur on October 1 of each year thereafter. Additional information concerning the rates and charges for the City'9 System 89 well as information about existing and projected customers of the System is eontained in the Hartman & Associates, Inc. Feasibility Report attached hereto &9 Appendix D. [Remainder of page intentionally left blank.) , 11 I'" I ¡ !, Include-investment earnings and is net of moneys on deposit in Impact Þ! iWld. . . . Net of,~latLon expense; also does not include certaLn tappLng expenses makes _the General Fund. Providiiìl;by the City' s Finance Department. Interd:oa the BANs has been capitalized for the initial rate tit_I. for the BANs. 12 financing; assumes an interest z o \) ....¡ N 1 (2 (3) (4) 18-month period of the and budgeted transfers the City the Rate Stab Feasibility Report CityGf' Clermont Finance Department and Hartman Iii Associates Revenues Pr ior Lien Dåt Coverage OD !'doc Lien Debt with·Jþt Revenues Public Seråœ Tax ReveDIØØ (3) Total Pledgèl',FWzds Interest OD<. !Wis (4) Coverage OD·1Iìte ~.lls from PublB'service and Net.. System!!evenues Source: N/A 594,146 952,778 NfA 3.12x Operating Net Total SystemBevenues CITY OP CLEIUtOfrr, FLORIDA AHD PROJECTED S'rA:r1!:ME:H'r OP OPERATING OP THE WATER AHD 5B'WBR SYSTEM (For Fiscal Years Ending Septeaber 30) PRO J E C TED ..... ..... IS) ....¡ cc. ::t1 -(I D' z· -f ~ . ::I' -. 1 r· r· ITI' ;JJI I !)<)I 1 0,,1 r.-' -. c ITI ]I P . . (.0 1 13) t Â' I (,:..Ie 1,.0 '  1 ..... . Â' 01 1 N' . . I I I i.lizatior¡.'Fund and Water and Sewer NJA 652,075 1,273,019 NfA N/A 710,830 1,219,203 o 6.4h: 787,435 1,357,717 211,575 3.83x 870,007 1,621,438 423,151 4. 959,819 1,833,545 423,151 33x 4.88x 1,056,555 2,068,827 423,151 Þ¡1enses (2) 1 $ 1, Audited FY 1994 1.23x 315,270 956,638 358,632 290,083 1.90x $1,569,180 948,236 620,944 326,420 Audited FY 1995 1. 56x $ 1,628,950 1,120,577 508,313 326,458 1996 FY 1. 75x $ 1, 809,903 1,239,621 570,282 325,745 1997 FY 2 $2,056,674 1,305,243 751,431 329,344 1998 FY 28x 2.67x ~,257,919 1,384,193 873,726 327,358 FY 1999 $2,481,740 1,469,468 1,012,272 324.900 FY 2000 HISTORICAL j~S of the operating results for the System for the fiscal years ending September 30, 1995, Pro ,;,¡œ sbown below, as further described and set forth in Appendix a, Bartman &- Associates Feasibility throuqh 20°1° see Appendix D for a discussion of the assumptions and considerations used in the projections. Report. P ease . . - RESULTS I:) I\J ~ w "- 'j) \J) · · · e e THE CITY The City is a municipal corporation organized and existing under the laws of the state of Florida. The City is located in south Lake County in the heart of central Florida. The City encompasses a five square mile area approximately thirty miles west of Orlando and thirty miles southeast of the City of Leesburg. The City's estimated population is 7,147. Due to the proximity of the Orlando metropolitan area to the City, this area is expected to have a large growth potential over the next 10 years. The City operates under a council-manager form of government, with a Mayor and four other Council Members. The City Manager is the chief executive and administrative officer of the city. Further information on the City is contained in Appendix A - "General Information concerning the City and Lake County". ESTIMATED SOURCES AND USES OF FUNDS The proceeds to be received from the sale of the Series 1996 Notes are expected to be applied as follows: Sources of Funds Principal Amount of Series 1996 Notes Less original Issue Discount Accrued Interest $ Total Sources of Funds $ Uses of Funds Deposit to the Construction Fund Deposit to Interest Account for capitalized Interest Payoff Line of Credit Deposit to Interest Account for Accrued Interest Underwriter's Discount Costs of Issuance $ Total Uses of Funds $ [Remainder of page intentionally left blank.] 13 '..10:..' .:..':;/~b l..¡;38 BF:YHN r ,"tILLER & OLIVE P. A. ... 904 394..52 - . NO. 276 f)03 " , ; ", ::; , ESTIMATED COMBINED DEBr BER~rCE REQUIREMENTS . set forth below ara the total debt service requirements for the Series 1996 Notes and the combined dp-bt service in the bond years indicated. 1,~_A...r - BoDd y.ar lad ing- Prior Lien Series U9' Tot.øl Debt 1, Ob~igation Not.es Service 1996 325,458 1991 325,745 199B 329,344 1999 327,358 2000 324,900 ~ 2001 326,850 2002 323,282 2003 324,077 2004 216,740 2005 216,470 2006 215,845 2007 214,970 2008 218,638 2009 216,763 2010 214,510 LEGALITY . cArta in lêgal mattér~ in connection with the issuance of the Series 1996 Noteg are subject to the approval of Polgy & Lardner, Jðcksonville, Florida, Note counsel, whose Note counøel opinion will be available at the time of ðelivery of the SArieø 1996 Notes. The propoeed form of such opinion of Note Counsel 19 attached to this Official Statement as Exhibit E. Certain legal matters will be pa~eed upon for the city by Leonard Baird, Jr., Esquire, City Attorney and for the Underwriter by Bryant, Miller and olive, P.A., Tampa, Florida. TAX MATTER.S Federal ~ax Ma~t.~r. The Internal Revenue Code of 1986, as amended (the "Code"), oon~81nB a number of requlrêft\entø and reetrlc~ions which may apply to the Series 1996 Notes, including investment restrictions,. a réquirement of periodic payments of arbitrage profits to .the United Statee,requirements regarding the use of bond prooeedø and the facilitieB financed therewith, and certain other matters. The city haø covenanted to comply with allrequlrements of the Code that must be satisfied in ot"der for the !ntereøt on the Series 1996 Notes to be excluded from ÇjroÐÐ income or federal income tax purpoøettó'Failure to comply with certain of Ðuch requiremente could cause lnterè!!l.t on the Series 1996 Notes to be included 1n grose income retroactive to the dat~;ofiÐsuance of the Series 1996 Notes. ,~" , :). ,.. subject to the còndition th'a't';.the .... City. comply ",ith the pertinent requirementB of the Code, under existi'nQ'law,· in the opinion of Note Counsel, intereøt on the S~deø 1996 Notes w1.11bftexeluded from the gron income of the owt1êrl!l thereof for federal incÒt'lle tax Pu'r.poøeø and will not be treated as an iteM of tax preference in computing the alternative minimum tax for inðividualø anð corporations. ~ef8renoe "iI!I madê to a, proposed. form of the Note Counsel op1ni.on attaehRd hereto Be Appéndl~ D for theè~t'/Ipl.te ,tex~ ~he~.of. ',';f :,-;."; , , , In renderJ.nq the oplnion, Note cO\an'eel wil1 rely upon eertiUoateø of the City with respect to certain material facts relating to the property financed . 14 . - . e e with the proceeds of the Series 1996 Notes and the application of the proceeds of the Series 1996 Notes. The Code contains numerous provisions which could affect the economic value of the Series 1996 Notes to certain owners of the Notes. The following is a brief summary of some of the significant provisions that may be applicable to particular owners of the Series 1996 Notes. Prospective owners of the Series 1996 Notes, however, should consult their own tax advisors with respect to the impact of such provisions on their own tax situations. Assuming the City can recertify certain representations and findings made by the City in the Note Resolution upon the issuance of the Series 1996 Notes, the Series 1996 Notes are "qualified tax-exempt obligations" (within the meaning of Section 265(b) (3) of the Code), and, in the case of certain financial institutions (within the meaning of Section 265(b)(5) of the Code), a deduction is allowed for 80% of that portion of the interest expense of such financial institutions which shall be allocable to interest on the Series 1996 Notes. Insurance companies (other than life insurance companies) are required to reduce the amount of. their deductible underwriting losses by 15% of the amount of tax-exempt interest received or accrued on certain obligations, including the Series 1996 Notes, acquired after August 7, 1986. If the amount of this reduction exceeds the amount otherwise deductible as losses incurred, such excess may be includable in income. Life insurance companies are subject to similar provisions under which taxable income is increased by reason of receipt or accrual of tax-exempt interest, such as interest on the Series 1996 Notes. Interest on the Series 1996 Notes must be included in the "adjusted current earnings" of corporations (other than S corporations, regulated investment companies, real estate investment trusts and REMICs), and the alternative minimum taxable income of such corporations must be increased by 75% of the excess of adjusted current earnings over alternative minimum taxable income (determined without regard to this adjustment and prior to reduction for certain net operating losses). As environmental tax is imposed on corporations (other than S corporations, regulated investment companies, real estate investment trusts and REMICs) by section 59A of the Code. The amount of the environmental tax is equal to 0.12% of the excess of the alternative minimum taxable income (determined without regard to net operating losses and the deduction for the environmental tax) over $2 million. The environmental tax may be imposed even if the corporation pays no alternative minimum tax liability. For purposes of the environmental tax, alternative minimum taxable income includes interest on tax-exempt obligations, such as the. Series 1996 Notes, to the same extent and in the same manner as such interest is included in alternative minimum taxable ~ncome as described in the preceding paragraph. certain recipients of social security benefits and railroad retirement benefits are required to include a portion of such benefits in gross income by reason of the receipt or accrual of interest on tax-exempt obligations, such as the Series 1996 Notes. For foreign corporations that operate branches in the United States, Section 884 of the Code imposes a branch level tax on certain earnings and profits in tax years beginning after 1986. Interest on tax-exempt obligations, such as the Series 1996 Notes, may be included in the determination of such domestic branches' taxable base on which this tax is imposed. Passive investment income, including interest on the Series 1996 Notes, may be subject to federal income taxation under Section 1375 of the Code for S corporations that have subchapter C earnings and profits at the close of the 15 e e taxable year if greater than 25% of the gross receipts of the S corporation consists of passive investment income. 4IÞ Florida Tax Matters It is also the opinion of Note Counsel that, under existing law, the Series 1996 Notes and the interest thereon are exempt from taxation under the laws of the State of Florida, except as to estate taxes and taxes on interest, income or profits on debt obligations owned by corporations, as defined in Chapter 220, Florida statutes, as amended. Original Issue Discount In the opinion of Note Counsel, under existing law, the original issue discount in the selling price of each Series 1996 Note (the "Discount Notes"), to the extent properly allocable to each owner of a Discount Bond, is excluded from gross income for federal income tax purposes to the same extent that any interest payable on such Discount Bond is or would be excluded from gross income for federal income tax purposes. The original issue discount is the excess of the stated redemption price at maturity of such Discount Bond over the initial offering price to the public, excluding underwriters or other intermediaries, at which price a substantial amount of such Discount Notes were sold (the "issue price") . Under Section 1288 of the Code, original issue discount on tax-exempt bonds accrues on a compound interest basis. The amount of original issue discount that accrues to an owner of a Discount Bond during any accrual period generally equals (i) the issue price of such Discount Bond plus the amount of original issue discount accrued in all prior accrual periods multiplied by (ii) the yield to maturity of such Discount Bond (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of each accrual period), less (iii) any interest payable on such Discount Bond during such accrual period. e The amount of original issue discount so accrued in a particular accrual period will be considered to be received ratably on each day of the accrual period, and will increase the owner's tax basis in such Discount Bond. The adjusted tax basis in a Discount Bond will be used to determine taxable gain or loss upon a disposition (e.g., upon a sale, exchange, redemption, or payment at maturity) of such Discount Bond. If a Discount Bond is purchased for a cost that exceeds the sum of the issue price plus accrued interest and accrued original issue discount, the amount of original issue discount that iB~deeme~ to accrue thereafter to the purchaser is reduced by an amoun,1;. that, reflects amortization of such excess over the remaining term of such Dišcount Bond. As described above regarding tax-exempt interest, a portion of the original issue discount that accrues in each year to an owner of a Discount Bond may result in certain collateral federal income tax consequences. In the case of a corporation, such portion of the original issue discount will be included in the calculation of the corporation's alternative minimum tax liability, the environmental tax liability and the branch profits tax liability. Corporate owners of any Discount Notes should be aware that the accrual of original issue discount in each year may result in an alternative minimum tax liability, an environmental tax liability or a branch profits tax liability although the owners of such Discount Notes will not receive a corresponding cash payment until a later year. ' Owners of Discount Notes who did not purchase such Discount Notes in the initial offering at the issue price should consult their own tax advisors with respect to the tax consequences of owning such Discount Notes. . 16 e e e Owners of Discount Notes should consult their own tax advisors with respect to the state and local tax consequences of the Discount Notes. It is possible that under the applicable provisions governing the determination of state and local income taxes, accrued original issue discount on the Discount Notes may be deemed to be received in the year of accrual, even though there will not be a corresponding cash payment until a later year. UNDERWRITING The Series 1996 Notes are being purchased by the Underwriter, pursuant to a purchase contract between the City and the Underwriter, as shown on the cover page hereof, from the City at an aggregate purchase price of $ (the face amount of the Series 1996 Notes less underwriter's discount and original issue discount) plus accrued interest on the Series 1996 Notes. The Underwriter is obligated to purchase all the Series 1996 Notes if any are purchased. Following the initial public offering, the public offering prices may be changed from time to time by the Underwriter. The Series 1996 Notes may be offered and sold to certain dealers (including underwriters and other dealers depositing the Series 1996 Notes into investment trusts) and others at prices lower than the public offering prices set forth on the cover page of this Official Statement. SECONDARY MARKET DISCLOSURE - The City has covenanted for the benefit of Series 1996 Noteholders to provide certain financial information and operating data relating to the City and the series 1996 Notes in each year, and to provide notices of the occurrence of certain enumerated material events. Annual financial information and operating data, the audited financial statements, and the Comprehensive Annual Financial Report will be filed by the City with each Nationally Recognized Municipal Securities Information Repository (the "NRMSIRs"), as well . as any state information depository that is subsequently established in the State of Florida (the "SID"). The notices of material events, when and if they occur, shall be timely filed by the City with the NRMSIRs or the Municipal Securities Rulemaking Board, and with the SID. The specific nature of the financial information, operating data, and of the type of events which trigger a disclosure obligation, and other details of the undertaking are described in "APPENDIX F - Form of Continuing Disclosure Certificate" attached hereto. The Continuing Disclosure Certificate shall be executed by the City prior to the issuance of the Series 1996 Notes. These covenants have been made in order to assist the Underwriter in complying with the continuing disclosure requirements of Rule 15c2-12 promulgated by the Securities and Exchange Commission. 'ENFORCEABILITY OF REMEDIES The remedies available to the owners of the Series 1996 Notes under the Note Resolution are in many respects dependant upon judicial actions which are often subject to discretion and delay. Under existing constitutional and statutory law and judicial decisions, including specifically Title 11 of the United States Code, the remedies specified by the Federal Bankruptcy Code and the Note Resolution may not be readily available or may be limited. The various legal opinions to be delivered concurrently with the delivery of the Series 1996 Notes (including Note Counsel's approving opinion) will be qualified, as to the enforceability of the various legal instruments, by limitations imposed by bankruptcy, reorganization, insolvency, or other similar laws affecting the rights of creditors or by such principles of equity as the court having jurisdiction may impose with respect to certain remedies which require or may require enforcement by a court of equity. . 17 .. e e LITIGATION . There is no litigation or controversy of any nature now pending or threatened (i) to restrain or enjoin the issuance, sale, execution or delivery of the Series 1996 Notes or (ii) in any way questioning or affecting the validity of the Series 1996 Notes, the Note Resolution, any proceedings of the City taken with respect to the authorization, sale or issuance of the Series 1996 Notes or the pledge or application of any moneys provided for the payment of the Series 1996 Notes. The City is a party from time to time in various law suits involving the City generally, and believes that none of the actions currently pending will have a material effect upon the finances of the City. GENERAL PURPOSE FINANCIAL STATEMENTS The General Purpose Financial statements and other information of the City for the fiscal year ended September 30, 1994, are included in Appendix B to this Official Statement. Such excerpts from the City's Comprehensive Annual Financial Report, including the auditor's report thereon, have been included in this Official Statement as public documents and consent from the auditors was not requested. The auditors have not performed any seJ;,vices relating to, and are therefore not associated ~ithi th~ i~s~arice of the Series 1996 Notes. FINANCIAL ADVISOR . The City has retained Public Financial Management, Inc., Fort Myers, Florida, as financial advisor (the "Financial Advisor") to the City in connection with the preparation of the City's plan of financing and with respect to the authorization and issuance of the Series 1996 Notes. Although the Financial Advisor assisted in the preparation of this Official Statement, the Financial Advisor has not undertaken to make an independent verification or to assume responsibility for the accuracy, completeness or fairness of the information contained in this Official Statement. Public Financial Management Inc. is a financial advisory consulting organization and is not engaged in the business of underwriting, marketing or trading municipal securities or any other negotiable instruments. 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, comprehens~ve or def~n~t~ve, and each such reference or summary ~s qualified in its entirety by reference to each such document, statute, report or other instrument. Copies of all such documents referred to herein are on file with the City Clerk of the City at 1 Westgate Plaza, Clermont, Florida 34711. The information herein has been compiled from official and other sources and, while not guaranteed by the City, is believed to be correct. As far as any statements made in this Official Statement and the appendices attached hereto involve matters of opinion or of estimates, whether or not expressly stated, they are set forth as such and not as representatives ,of fact and no representation is made that any of the estimates will be realized. DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS Florida law requires the City to make a full and fair disclosure of any bonds or other debt obligations which it has issued or guaranteed and which are or have been in default as to principal or interest at any time after December 31, 1975 (including bonds or other debt obligations for which it has served as a conduit issuer). The City is not and has not been in default as to principal . 18 · · · '. - - and interest on bonds or other debt obligations which it has issued as the principal obligor. AUTHORIZATION OF AND CERTIFICATION CONCERNING OFFICIAL STATEMENT The delivery of this Official Statement has been authorized by the City Commission. Concurrently with the delivery of the Series 1996 Notes, the undersigned will furnish their certificate to the effect that, to the best of their knowledge, this Official Statement did not as of its date, and does not as of the date of delivery of the Series 1996 Notes, contain any untrue statement of a material fact or omit to state a material fact which should be included therein for the purpose for which this Official statement is to be used, or which is necessary in order to make the statements contained herein, in the light of the circumstances in which they were made, not misleading. The City has reviewed the information herein and has approved this Official Statement. The City has authorized and approved the distribution of this Official Statement, and has declared it "nearly final" within the contemplation of Rule lSc2-12 promulgated by the Securities and Exchange Commission. CITY OF CLERMONT, FLORIDA By: Mayor By: City Manager J:\80NDS\41 06\POS4 2/22/96 GED I R 19 - e . APPENDIX A e GENERAL INFORMATION CONCERNING CITY OF CLERMONT, FLORIDA AND LAKE COUNTY . e . . e e APPENDIX A GENERAL INFORMATION CONCERNING LAKE COUNTY, FLORIDA The Area The City of Clermont occupies about five square miles and is located in south Lake County, Florida (the "County"), about 3 0 miles south of Orlando on Highway 50 in the central highlands region of Florida and is about equidistant from the Atlantic Ocean and the Gulf Coast. The average elevation is eighty feet above sea level with the maximum elevation of up to one hundred forty feet. The area around the City has many miles of lakes and rivers. Lake Griffin provides direct access to the Atlantic Ocean Via the st. Johns River. Climate The mean daily high temperature is 82 degrees and the mean low temperature is 63 degrees. Year round temperatures in the area average in the 70' s. Average annual yearly rainfall is 51.2 inches. The average relative humidity is 60%. Recreation and Tourism There are many golf courses in and within close proximity to the County. In addition, with many lakes nearby, fishing, boating and water sports are popular recreational activities. Lake Griffin is recognized as a state Park supporting an annual attendance of 25,466 in 1993-94 compared to 18,368 visitors in 1990-91. In 1993 there were 15,860 pleasure boats and 263 commercial boats registered in Lake County. The City is the largest financial supporter of a private library that serves City residents and residents of the surrounding area. Lake County The County is a noncharter county established in 1887 and located in Central Florida between Orlando and Ocala. The County benefits from a spillover effect being a part of the Orlando Metropolitan statistical Area (MSA) which is just southeast of the County. The County encompasses 954 square miles of land and more than 1,300 recorded lakes, rivers and canals, covering 202 square miles. Interstate 75 connects with state Road 40 to 50, U.S. 441 and 27, and the Florida state Turnpike passes through the County. within the County's borders are fourteen municipalities comprising approximately 46% of the population. population The County's population has increased form 104,870 in 1980 to 171,168 in 1994, an increase of 63.2% according to recent statistics from the University of Florida Bureau of Economic and · · · e e Business Research. This compares to a 32.7% increase for Florida and a 9.8% increase for the nation. Population Lake County, Florida, united states 1960-1993 1960 1970 1980 1990 1991 1992 1993 Lake County 57,383 69,305 107,870 152,104 157,061 162,579 167,167 FLorida 4,951,960 6,791,418 9,746,961 12,937,926 13,195,952 13,424,416 13,608,627 Uni ted States 179,323,000 203,236,000 227,757,000 250,411,000 252,160,000 256,447,000 259,476,000* * Estimated Sources: U.S. Department of Commerce, Bureau of the Census and FLorida StatisticaL Abstracts, University of Florida Population Estimates and Projections Lake County and Florida (In Thousands rounded to hundreds) Estimate pro'iections 1993 1995 2000 2005 2010 2015 2020 Lake county 167.2 176.0 199.8 222.8 245.5 268.4 290.0 Florida 13,608.6 14,109.7 15,449.0 16,742.1 18,008.4 19,267.8 20,520.8 Note: The medium projection is believed to provide an accurate forecast of future populations and is the figure used in this table. Source: Florida Statistical Abstract, 1994. Local and state Taxes Florida has no individual state irtcome tax although a corporate income tax-is imposed. Inheritance ,tax is confined to the amount allowed as a credit to the state from the tax levied by the united states government. The 6% state sales tax applies to all items except groceries and medicines. Under the Florida Homestead Exemption law, no municipal or county taxes are levied against the first $25,000 of valuation of a home occupied by its owners except for special assessments. It is a state law that all tax appraisals must be at 100% of value. The Board of Commissioners of Lake County, the School Board of Lake County and the city Council are each limited by the Constitution of Fldorida to an ad valorem tax levy of 10.0 mills per $1,000 of assessed value for operating expenditures. 2 · · · - - Property Tax Rates - Direct and overlapping Governments (Per $1,000 of Assessed Value) Last Ten Fiscal Years Fiscal Year(l) 1984-1985 1985-1986 1986-1987 1987-1988 1988-1989 1989-1990 1991-1992 1992-1993 1993-1994 City of Clermont Millage Rate Lake County Millage Rate(2) School District Millage Rate (1) Fiscal year is equivalent to preceding tax year. For example, fiscal year 1984-1985 corresponds to tax assessment year 1984. (2) Millage Rate that is applied county-wide; additional millage is imposed by the County in various parts of the County. Source: Lake County, Florida Comprehensive Annual Financial Report, Fiscal Year ended September 30, 1994; ci ty of Clermont, Florida Comprehensive Annual Report, Fiscal Year ended September 30, 1994. [Remainder of page intentionally left blank.] 3 -- - . Property Valuations Taxable and Assessed Lake County and City of Clermont Tax Roll Years 1984-1994 Non-Exempt Real Property Total Taxable Valuations Fiscal Year 1984-1985 1985-1986 1986-1987 1987-1988 1988-1989 1989-1990 1990-1991 1991-1992 1992-1993 1993-1994 Lake County $1,811,738,357 1,716,666,926 1,942,023,063 2,135,039,990 2,511,761,996 2,845,395,693 3,080,744,507 3,480,863,456 3,621,147,219 3,825,896,856 Clermont $ Personal Property Total Taxable Valuations . Fiscal Year 1984-1985 1985-1986 1986-1987 1987-1988 1988-1989 1989-1990 1990-1991 1991-1992 1992-1993 1993-1994 Lake County $ 300,670,643 313,880,199 341,580,135 376,135,582 429,972,077 488,517,532 538,458,517 635,628,359 649,780,932 692,045,241 Clermont $ Totals All Property Assessed Valuations Fiscal Year 1984-1985 1985-1986 1986-1987 1987-1988 1988-1989 1989-1990 1990-1991 1991-1992 1992-1993 1993-1994 Lake County $2,112,409,000 2,030,547,125 2,283,603,198 2,511,175,572 2,941,734,073 3,333,913,225 3,619,203,024 4,116,491,815 4,270,928,151 4,517,942,097 Clermont. $ Sources: Lake County Comprehensive Annual Financial Report, Fiscal Year Ended September 30, 1994; City of Clermont, Florida Comprehensive Annual Financial Report, Fiscal Year Ended September 30, 1994. ~. 4 e e Lake County Schools · within a sixty mile radius Lake County has six major institutions of higher learning: University of Central Florida, University of Florida, Rollins College, st. Leo College and stetson University. Lake Sumter Community College, located east of Leesburg, offers two-year associate degrees in the arts, sciences, business and technical subjects. The County School System operates thirty-six schools: eighteen elementary, eight middle, six high, one exceptional education, one special, one gifted and one vocational/technical school. For the 1993-1994 school year a total of 22,669 students were enrolled. Medical Facilities Lake County has five hospitals with a total short-term patient capacity of more than 680 beds, one Hospice, 12 licensed home heal th care agencies, four resident treatment facilities with approximately 76 beds and 11 nursing homes with an approximate total of 1,316 beds. Employment Unemployment Rates Lake County, Florida and the united States 1990-1995 · Fiscal Year County State National 1990 8.0 5.9 5.8 1991 8.3 7.3 6.7 1992 8.7 8.2 7.4 1993 6.9 7.0 6.8 1994 6.6 6.6 6.1 1995(1) 5.0 5.3 5.6 (1) As of April 1995 (Preliminary) . Sources: Florida statistical Abstract, 1989, 1990, 1991, 1992, 1993, 1994; Florida Department of Labor and Employment Security, Bureau of Labor Market Information, Local Area Unemployment Statistics Program, in cooperation with the U.S. Department of Labor, Bureau of Labor statistics. Economy Although recent freezes have severely damaged the local citrus industry, agriculture is still important to the economy. [The major growth industry in the City currently is involved with the · 5 · · · e e development of large retirement communities. The growth of those retirement communities has also spurred home manufacturing and construction industry growth as well as retail and sales and professional office growth to service the tremendous number of new residents.] The services sector of the County's economy is the largest employer in the county. In 1993 over half of the total non-farm employment (59.3%) was in two industry divisions, services (34.8%) and wholesale and retail trade (24.5%). Employment by Major Industry Group state of Florida and Lake County 1992-1993 Services Retail Trade Manufacturing Agriculture, forestry and fisheries Construction Public Administration Finance, Insurance and Real Estate Transportation, Commerce and Public Utilities Wholesale Trade Mining Other 1992 1,979,074 1,129,419 480,732 147,415 272,370 377,901 353,220 Total Industries 317,364 290,849 7,143 8,227 5,364,029 State of Florida 1993 2,107,445 1,164,557 483,428 % Chanqe 1992 15,262 10,242 3,872 3,071 2,825 3,011 2,703 2,380 1,232 (1 ) (1 ) 44,889 Lake County 1993 16,315 10,331 4,265 % Chanqe 6.5 3.1 .6 154,101 291,695 4.5 7.1 6.9 .9 10.1 3,230 3,071 5.2 8.7 382,042 359,467 1.1 3,022 .4 1.8 329,097 293,299 6,566 10,865 5,582,844 3.7 .8 (8.8 ) 32.1 4.1 2,726 .9 2,472 1,165 268 34 3.9 (5.4) N/A N/A 4.5 46,905 Source: (1) Data withheld to avoid disclosure of information about individual firms. State of Florida, Department of Labor and Employment Security, Bureau of Labor Market Information, "Employment, Wages and Contribution Report: (ES- 202), unpublished data. Totals may not match due to rounding. 6 · · · e e Manufacturing accounts for a small share of the County's economy (10.1%). Listed below are the ten largest industrial employers in Lake County as of September 30, 1994: Ten Largest Industrial Employers Lake County, Florida No. of Employees Florida Crushed Stone Company Golden Gem Growers (1) Coca Cola Foods Silver Springs citrus Co-op Mount Dora Growers Cooperative Dura-Stress, Inc. White Aluminum Products Florida Medical Industries Florida Made Door Company Florida Select citrus, Inc. 915 700 455 200 170 165 155 150 100 100 (1) Includes 350 seasonal employees. Source: Lake County Comprehensive Annual Financial Report, Fiscal Year Ended September 30, 1994; Mid-Florida Economic Development Commission. Personal Income The following financial indeces are presented to compare personal income in Lake County with the State of Florida and the united States. Per capita Amounts on Place-of-Residence Basis united states, Florida and Lake County 1988";1992 (Rounded to dollars) united States Florida Lake County 1988 $16,610 16,640 14,635 1990 1992 $20,105 19,797 17,074 1991 $19,163 19,293 16,576 1989 $17,690 18,024 15,975 18,667 18,906 16,433 Source: Florida statistical Abstract, 1994. [Statistics are not yet available for 1993 and 1994.] 7 · · · e e Personal Income by Industry Classification Lake County 1991-1992 (in thousands) Industry Manufacturing Construction Transportation, Communications and utilities Retail Trade Wholesale Trade Finance, Insurance and Real Estate Services Mining other private industry (1) Total " 1991 1992 ~ Chanqe 0 $117,778 $125,547 6.6% 85,492 106,305 24.3 67,350 73,802 9.6 155,984 166,275 6.6 36,515 38,189 4.6 66,878 69,712 4.2 285,034 328,194 15.1 7,417 7,429 0.2 25,883 28,930 11. 8 $848,331 $944,383 11. 3 % (1) Includes agricultural services, forestry, fisheries and other. Source: Florida statistical Abstract, 1994. construction Building permit activity in Lake County and the Clermont is shown in the table below. Building Permit Values Year Clermont (1) Lake County 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 $ 81,298,214 88,536,091 113,892,744 125,657,809 189,242,778 151,074,177 134,128,221 126,794,691 124,652,170 168,216,578 (1) Permits/Inspections included in County Total. Source: Lake County, Florida Comprehensive Annual Financial Report, Year Ending September 30, 1994. 8 e e . city of Clermont, Florida Largest Employers Employer Publix Lake County School System South Lake Memorial Hospital Lake Highlands Retirement and Nursing Horne CBS Industries Exceletech, Inc. City of Clermont Quincy's Steak House South Lake Ford Bell Ceramics Industrv Grocery Education Health Care Retirement and Nursing Number of Employees 223 184 175 130 Construction Supplies Steel Fabrication and Erection Municipality Restaurant Automobile Dealer Ceramic Mold Manufacturer 96 90 76 58 41 25 Source: city of Clermont, Finance Department. City of Clermont, Florida Demographic statistics Last Ten Fiscal Years . (2) (3 ) Fiscal (1) School Unemployment Year Population Enrollment Rate 1985-86 6,114 1,635 8.8% 1986-87 6,379 1,647 7.4 1987-88 6,623 1,670 6.1 1988-89 6,642 1,788 7.7 1989-90 6,910 1,897 6.2 1990-91 6,910 1,975 8.7 1991-92 6,930 2,169 7.4 1992-93 7,013 1,482 4.3 1993-94 7,174 1,629 8.1 1994-95 Data Sources: (1) College of Business Administration, University of Florida - Bureau of Economic and Business Research (2) Figures represent Grades K-12 in Public Schools. Source - Department of Education (3) Information available on countywide basis only. Data was obtained from the Florida Department of Labor, Bureau of Labor Market Information . 9 · · · .. e e City of Clermont, Florida Water and Sewer Customer Data Last Five Fiscal Years NUMBER OF CUSTOMERS (1) FISCAL WATER SEWER YEAR RESIDENTIAL COMMERCIAL RESIDENTIAL COMMERCIAL 1990-91 1991-92 1992-93 1993-94 1994-95 2,184 2,195 2,307 2,345 344 346 366 374 2,125 2,127 2,218 2,252 299 298 313 319 10 ANNUAL WATER USAGE (GAL) 425,851,000 429,536,000 465,789,000 491,327,000 e - . APPENDIX B . CITY OF CLERMONT, FLORIDA GENERAL PURPOSE FINANCIAL STATEMENTS AND OTHER INFORMATION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1994 . e · · · APPENDIX C NOTE RESOLUTION e · · · . , - - APPENDIX D FEASIBILITY REPORT OF HARTMAN & ASSOCIATES · · · , . e APPENDIX E FORM OF NOTE COUNSEL OPINION e · · · e e [FORM OF NOTE COUNSEL OPINION] 1996 The Honorable Mayor and Members of the City Commission Clermont, Florida Ladies and Gentlemen: We have examined certified copies of the proceedings of the City Commission (the "City Commission") of the City of Clermont, Florida (the "Issuer"), and other proofs submitted relative to the authorization, issuance and sale of and the security for the following described bond anticipation notes (the "Notes"): $ CITY OF CLERMONT, FLORIDA WATER AND SEWER REVENUE AND REFUNDING BOND A NTICIP A TION NOTES SERIES 1996 Daœd~of ,1996 The Notes are issued pursuant to the Constitution and laws of the State of Florida, including particularly Chapter 166, Part II, Florida Statutes, as amended, and a resolution duly adopted by the City Commission on February _' 1996, as supplemented (the "Resolution"), CO finance the cost of the acquisition, construction and installation of certain capital improvements to the Issuer's munidpal water and sewer system (the "System") and the refunding of certain outstanding obligations of the Issuer, in anticipation of the receipt by the Issuer of the proceeds from the sale of not exceeding $ principal amount of its Water and Sewer Revenue and Refunding Bonds, Series 2000 (the "Bonds"). We have examined the law and such certified proceedings and othcr papers as we deem necessary to render this opinion. The principal of, premium, if any, and interest on the Notes are payable solely from and secured by a lien upon and a pledge of (i) the proceeds to be derived by the Issuer from the sale of the Bonds, (ii) the proceeds to be derived by the Issuer from the sale of bond anticipation notes issued to extend and renew the indebtedness evidenced by the Notes, (iii) the Pledged Revenues (as defined in the Resolution), including the Net Revenues (as defined in the 1 . . . . . e e The Honorable Mayor and Members of the City Commission , 1996 Page 2 Resolution) to be derived from the operation of the System and the Excise Taxes (aB defined in the Resolution), and (iv) until applied in accordance with the provisions of the Resolution, the proceeds of the Notes and all moneys, including investments thereof, in certain of the funds and accounts esœblished pursuant to the Resolution, all in the manner and to the extent described in the Resolution (collectively, the "Pledged Funds"). The lien in favor of the holders of the Notes upon the Net Revenues is junior, subordinate and inferior in every respect to the lien thereon securing (i) the indebtedness and other obligations of the Issuer under and pursuant to that ,certain Loan Agreement, dated as of July 1, 1993, among NationsBankofFlorida, N.A., as trustee, the City of Arcadia, Florida, aI1d the Issuer and (ü) the obligation to pay any amounts that may become due under and pursuant to Sections 3(C), 4 or 5 of that certain First Supplemental Loan Agreement, dated as of July 1, 1993, between Sun Bank, National Association, as trustee, Lane Gilchrist. Mayur, City of Gulf Breeze, as administrator, and the Issuer. The Issuer in the Resolution has covenanted and agreed with the holders of the Notes that it will not hereafter issue any additional obligations payable from the Pledged Funds or any ponion thereof having a lien superior to or on a parity with the Notes. The Notes and the interest thereon do not constitute a general indebtedness of the Issuer or a pledge of its faith and credit, but are payable solely from the Pledged Funds in the manner provided in the Resolution. No holder of any of the Notes shall ever have the right to compel the exercise of the ad valorem taxing power of the Issuer to pay the Notes or intcrest thereon or be entitled to payment of the Notes or interest thereon [rom any moneys of the Issuer except the Pledged Funds. As to questions of fact material to our OpInlOn, we have relied upon the representations of the Issuer contained in the Resolution and in the certified proceedings and other certifications of public officials furnished to US without undertaking to verify the same by independent investigation. Based upon the foregoing, we are of the opinion, under existing law, as follows: 1. The Issuer is a duly created and validly existing municipality of the Sœte of Florida with the power to adopt the Resolution, perfonn the agreements on its part contrined therein and issue the Notes. 2 · · · '. e e The Honorable Mayor and Members of the City Commission , 1996 Page 3 2. The Resolution has been duly adopted by the Issuer and C0nstitutes a valid and binding obligation of the Issuer enforceable upon the Issuer in accordance with its terms. 3. The Notes have been duly authorized, executed and delivered by the Issuer and are valid and binding special obligations of the Issuer enforceable in accordance with their terms. 4. The Notes and the intere~t ther~n are exempt from taxation under the laws of the State of Florida, except as to estate taxes and taxes on interest, income or profits on debt obligations owned by corporations, as defined by Chapter 220, Florida Statutes, as amended. 5. Interest on the Notes (including any original issue discount properly allocable to the holders thereof) (a) is excluded from gross income for federal income tax purposes and (b) is not an item of tax preference for purposes of the federal alternative minimum tax applicable to all taxpayers: provided, however, that interest on the Notes is included in "adjusted current earnings" for purposes of calculating the alternative minimum tax imposed on corporations. The opinion set forth in clause (a) above is subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended (the "Code"), that must be satistïed subsequent to the issuance of the Notes in order that interest thereon be (or continue to be) excluded from gross income for federal income tax purposes. Failure to comply with cenain of such requirements could cause the interest on the Notes to be so included in gross income retroactive to the date of issuance of the Notes. The Issuer has covenanted to comply with all such requirements. The Notes are "qualified tax-exempt obligations" within the meaning' of Section 265(b)(3) of the COde, and, in the case of certain financial institutions (within the meaning of Section 265(b)(5) of the Code), a deduction is allowed for 80% of that portion of the interest expense of such financial in~titution:s which shall be allocable to interest on the Notes. We express no opinion regarding other federal tax consequences arising with respect to the Notes. 6. The Notes are exempt from regÍ3tration 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. -3 · · · e e The Honorable Mayor and Members of the City Commission , 1996 Page 4 It is to be understood that the rights of the holders of the Notes and the enforceability of the Notes and the Resolution may be subject to bankruptcy, insolvency, reorganization. moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted to the extent constitutionally applicable and that their enforcement may also be subject to the exercise of judicial discretion in appropriate cases. Respectful1y submitted, IOOC:¡'S0FT\32S1.1101f26111" ::I: T6ømIIJ^"C::I6IJHM:1úI 4. e e . . APPENDIX F FORM OF CONTINUING DISCLOSURE CERTIFICATE . · · · e e FORM OF CONTINUING DISCLOSURE CERTIFICATE This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by the City of Clermont, Florida (the "Issuer") in connection with the issuance of its $ Water and Sewer Revenue and Refunding Bond Anticipation Notes, Series 1996 (the "Series 1996 Notes"). The Series 1996 Notes are being issued pursuant to Resolution No. adopted by the City Council of the Issuer (the "Council") on February 13, 1996, as amended and supplemented (the "Resolution"). The Issuer covenants and agrees as follows: SECTION 1. PURPOSE OF DISCLOSURE CERTIFICATE. This Disclosure Certificate is being executed and delivered by the Issuer for the benefit of the Series 1996 Noteholders and in order to assist the underwriter or underwriters of the Series 1996 Notes in complying with the continuing disclosure requirements of Rule 15c2-12 promulgated by the Securities and Exchange Commission ("SEC") pursuant to the Securities Exchange Act of 1934 (the "Rule"). ' SECTION 2. NATURE OF UNDERTAKING. The Issuer shall provide to each nationally recognized municipal securities information repository described in Section 4 hereof (the "NRMSIRs"), and to any state information depository that is established within the State of Florida (the "SID"), on or before April 30 of each year, commencing April 30, 1996 (or, in the case of audited financial statements, 30 days after such later time as the Issuer completes its audited financial statements for its prior Fiscal Year), the following information: (A) audited financial statements of the Issuer for the immediately preceding Fiscal Year prepared in accordance with Generally Accepted Accounting Principles, as modified by applicable State of Florida requirements and the governmental accounting standards promulgated by the Government Accounting Standards Board; and (B) an update of the tables in the Official Statement prepared in connection with the sale of the Series 1996 Notes entitled" " " and , " In addition, the Issuer shall provide to each NRMSIR and the SID, if any, its Comprehensive Annual Financial Report (the "CAFR") for the immediately preceding Fiscal Y ear when and if such CAFR becomes available. F or purposes of this Disclosure Certificate, "Fiscal Year" means the period commencing on October 1 and ending on September 30 of the next succeeding year, or such other period of time provided by applicable law. SECTION 3. REPORTING SIGNIFICANT EVENTS. The Issuer shall provide each NRMSIR or the Municipal Securities Rulemaking Board (the "MSRB") and to the SID, on a timely basis, notice of any of the following events, if such event is deemed to have a material effect on the Series 1996 Notes or the Issuer's ability to satisfy its payment obligations with respect to the Series 1996 Notes: , (A) . (B) (C) (D) (E) (F) (G) (H) (I) (J) e e delinquencies in the payment of principal and interest on the Series 1996 Notes; non-payment related defaults; unscheduled draws on the debt service reserves reflecting financial difficulties; unscheduled draws on credit enhancements reflecting financial difficulties; substitution of credit or liquidity providers, or their failure to perform; adverse tax opinions to or events affecting the tax-exempt status of the Series 1996 Notes: modifications to rights of the holders of the Series 1996 Notes; any call of the Series 1996 Notes (other than scheduled mandatory redemption) or any acceleration of the maturity thereof; defeasance in whole or in part of the Series 1996 Notes; release, substitution, or sale of property securing repayment of the Series 1996 Notes; . (K) any change in the rating assigned to the Series 1996 Notes or any other obligations of the Issuer; and (L) notice of any failure on the part of the Issuer to meet the requirements of Section 2 hereof (except for failure to timely file audited financial statements or the CAFR). The Issuer may from time to time, in its discretion, choose to provide notice of the occurrence of certain other events, in addition to those listed in Section 3, if, in the judgment of the Issuer, such other events are material with respect to the Notes, but the Issuer does not specifically undertake to commit to provide any such additional notice of the occurrence of any material event except those events listed above. Any voluntary inclusion by the Issuer of supplemental information that is not required hereunder shall not expand the obligations of the Issuer hereunder and the Issuer shall have no obligation to update such supplemental information or include it in any subsequent report. SECTION 4. NRMSIRs AND SIDs. As of the date of issuance of the Series 1996 Notes, the NRMSIRs to which the Issuer shall provide the information described in Sections 2 and 3 above, to the extent required, shall be the following organizations, their successors and assigns: . 2 ~ . e e (A) Bloomberg Municipal Repositories P.O. Box 840 . Princeton, New Jersey 08542-0840 Phone: 609/279-3200 Fax: 609/279-5962 (B) The Bond Buyer Attn: Municipal Disclosure 395 Hudson Street New York, New Yark 10014 Phone: 212/807-3814 Fax: 212/989-9282 (C) Disclosure, Inc. Attn: Document Acquisitions/Municipal Securities 5161 River Road Bethesda, Maryland 20816 Phone: 301/951-1450 Fax: 301/718-2329 (D) Donnelly Financial Municipal Securities Disclosure Archive 559 Main Street Hudson, Massachussets 01749 . Phone: 800/580-3670 (E) Kenny Information Systems, Inc. Attention: Kenny Repository Service 65 Broadway, 16th Floor New York, New York 10006 Phone: 212/770-4595 Fax: 212/797-7994 (F) Moody's NRMSIR Public Finance Information Center 99 Church Street New York, New York 10007 Phone: 800/339-6306 Fax: 212/553-1460 The Issuer is required to provide the information described in Sections 2 and 3 above to any NRMSIR's that are subsequently established and approved by the Securities and Exchange Commission. According to a Securities and Exchange Commission press release dated June 26, 1995, a list of names and addresses of all designated NRMSIRs as of any point in time is available by calling the SEC's FAX On Demand Service at (202) 942-8088 from a telecopier machine and requesting document number 0206. . 3 --...... e e As of the date of issuance of the Series 1996 Notes, there are no SIDs in the State of Florida. . SECTION S. REMEDIES; NO EVENT OF DEFAULT. The Issuer agrees that its undertaking pursuant to the Rule set forth above is intended to be for the benefit of the holders and beneficial owners of the Series 1996 Notes and shall be enforceable by any such holder or beneficial owner; provided that the right to enforce the provisions of this undertaking shall be limited to a right to obtain specific performance of the Issuer's obligations hereunder and any failure by the Issuer to comply with the provisions of this undertaking shall not be an event of default with respect to the Series 1996 Notes under the Resolution. SECTION 6. INCORPORATION BY REFERENCE. The information required to be provided pursuant to Section 2(B) herein may be incorporated by reference from other documents, including official statements or debt issues of the Issuer of related public entities, which have been submitted to each of the NRMSIRs or the SEe. If the document incorporated by reference is a final official s,~atement, it, must ' be available from the MSRB. The Issuer shall clearly identify each document incorporated by reference. SECTION 7. DISSEMINATION AGENTS. 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 disseminating agent. . SECTION 8. TERMINATION. The Issuer's obligations under this Disclosure Certificate shall cease upon the legal defeasance, prior redemption, payment in full of all of the Series 1996 Notes, and/or when the Issuer no longer remains an obligated person with respect to the Series 1996 Notes within the meaning of the Rule. SECTION 9. AJ,\1ENDMENTS. Notwithstanding any other provlSlon of this Disclosure Certificate and the Resolution, the Issuer may amend this Disclosure Certificate and any provision herein may be waived, provided that the following conditions are satisfied: (1) the amendment or waiver may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of an obligated person with respect to the Series 1996 Notes, or the type of business conducted; (2) the undertaking, as amended or taking into account such waiver would, in the opinion of nationally recognized note counsel, have complied with the requirements of the Rule at the time of the original issuance of the Series 1996 Notes, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and . (3) the amendment or waiver does not materially impair the interests of holders and beneficial owners as determined either by parties 4 5 J:\80NDS\4106\CDC1 1/29¡'36 GED I A . Clerk ATTEST: By: . Robert A. Pool, Mayor CITY OF CLERMONT, FLORIDA Dated: February _, 1996 SECTION 10. 'OBLIGATED PERSONS. If any person, other than the Issuer, becomes an Obligated Person (as-defined in the Rule) relating to the Notes, the Issuer shall use its best efforts to require such Obligated Person to comply with all provisions of the Rule applicable to such Obligated Person. unaffiliated with the Issuer or obligated person or by an approving vote of holders of the Series 1996 Notes pursuant to the terms of the Resolution. . In the event of any amendment or waiver of a provision of this Disclosure Certificate, the Issuer shall describe such amendment or waiver in the provision of annual financial information containing the amended or waived operating data and financial information, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or, in the case of a change of accounting principles, on the presentation) of annual financial information or operating data being presented by the Issuer. In addition, if the amendment or waiver relates to the accounting principles to be followed in preparing financial statements (i) notice of such change shall be given in the same manner as set forth in Section 3, and (ii) the Issuer for the year in which the change is made shall present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. e ..... e , , . PRELIMINARY OFFICIAL STATEMENT DATED.ARY NEW ISSUE lit RATINGS: UNRATED In the opinion of Foley & Lardner, Note Counsel, under existing law, and assuming compliance with certain covenants in the Note Resolution described herein, interest on the Series 1996 Notes is excluded {rom gross income {or federal income tax purposes, and the Series 1996 Notes and the interest thereon are exempt {rom taxation under the laws o{ the State of Florida, except as to estate taxes and taxes on interest, income or pro{its on debt obligations owned by corporations, as de{ined in Chapter 220, Florida Statutes, as amended, Furthermore, assuming the City can recertify certain representations and findings made by the City in the Note Resolution upon the issuance of the Series 1996 Notes, the Series 1996 Notes are "quali{ied tax-exempt obligations" within the meaning o{ Section 265(b)(3) of the Internal Revenue Code o{ 1986, as amended, See, however, "TAX MATTERS" herein {or a description o{ certain {ederal minimum and other special taxes that may a{{eet the tax treatment o{interest on the Series 1996 Notes, 1996 28, City of Clermont, Florida $8,060,000* Water and Sewer Revenue and Refunding Bond Anticipation Notes Series 1996 (Bank Qualified) Dated: March 1, 1996 Due: December 1, 2000 The City of Clermont, Florida, Water and Sewer Revenue and Refunding Bond Anticipation Notes, Series 1996 (the "Series 1996 Notes") wil1 be issued as ful1y registered notes in principal denominations of $5,000 or any integral multiples thereof Interest on the Series 1996 Notes is payable semi-annual1y, commencing ,June 1, 1996, and each December 1 and June 1 thereafter by check or draft of First Union National Bank of Florida, with its designated corporate trust office in Jacksonvil1e, Florida, as Registrar and Paying Agent, mailed to the registered owner thereof at the address shown on the registration books of the City maintained by the Registrar on the 15th day of the month next preceding each interest payment date, whether or not a business day, provided, however, that at the written request and expense of any registered owner and at the option of the Paying Agent, interest may be payable by wire transfer for the account of such registered owner, Principal of the Series 1996 Notes will be payable upon presentation and surrender of the Series 1996 Notes at the designated corporate trust office of the Paying Agent, 1996 Notes wi The Series not be subject to redemption prior to their stated maturity, The Series 1996 Notes are being issued pursuant to the Constitution and laws of the State of Florida, particular]y Chapter 166, Part II, Florida Statutes, as amended, and other applicable provisions of law, and a reso]ution adopted by the City CounciJ (the "City Counci]") of the City ofC]ermont, Florida (the "City") on February 27,1996, The Series 1996 Notes are issued in the anticipation of the receipt by the City of the proceeds from the proposed sale of not exceeding $17,000,000 of its Water and Sewer Revenue and Refunding Bonds, Series 2000 (the "Series 2000 Bonds"), Concurrently with the adoption of the Nòte Resolution, the City Council adopted a resolution authorizing the issuance of the Series 2000 Bonds, 1996 Notes will be issued b: t'le (ity to I rovi: e fune , construction issuance relatE (i) retirement of certain outstanding obligations improvements to the City's water and sewer system (the , , ), , I s for the following: and instalLltion of ce,tain capital The Series of the City; (ii "System and acquisition iii) costs of The Series 1996 Notes are limited obligations of the City payable solely from and secured by a lien upon and pledge of (i) the proceeds to be derived by the City from the sale of the Series 2000 Bonds; (ii) the proceeds to be derived by the City from the sale of bond anticipation notes issued to extend and renew the indebtedness evidenced by the Series 1996 Notes; (iii) the Pledged Revenues (as defined in the Note Resolution), which Pledged Revenues include the Net Revenues (as defined and described in the Note Resolution) derived from the operation of the System and the Public Service Taxes; and (iv) until applied in accordance with the provisions of the Note Resolution, the proceeds of the Series 1996 Notes and al1 moneys, including investments thereof, in certain of the funds and accounts established pursuant to the Note Resolution, al1 in the manner and to the extent described in the Kote Resolution (collectively, the "Pledged Funds"). The lien on the Ket Revenues is junior and subordinate to certain other Prior Lien Obligations of the City (as described herein), The Series 1996 Notes and the interest thereon shal1 not be and shal1 not constitute indebtedness of the City or of the State of F]orida or any political subdivision thereof within the meaning of any ConstitutionaL statutory, charter or other limitation of indebtedness, and neither the ful1 faith and credit nor the taxing powers of the State of Florida or the City are pledged as security for the payment of the principal of, premium, if any or interest on the Series 1996 Notes and no holder or holders of any Series 1996 Notes shal1 ever have the right to compel the exercise of the ad valorem taxing powers of the City, or taxation in any form on any real property therein to pay the Series 1996 Notes or the interest thereon must read the issue, Investors reference only, It is not a summary of the making an informed investment decision, Notes due December 1 This cover page contains certain information for quick entire Official Statement to obtain information essentia] to $ or Counse to Baird, Jr. Florida Yield The Series 1996 are offered when, as if issued and delivered to the Underwriter, subject to prior sale, withdrawa] modification of the offer ' written notice and', the approval of legality by Fo]ey & Lardner, Jacksonvil1e, Florida, Note the City and certain other I onditions, Certain l,?gal matters will be passed on for the City by its City Attorney, Leonard matte's will be passed upon for the Underwriter by its counsel, Bryant, Mil1er and Olive, P,A. 1996 Notes in definitive form will be available for delivery in New York, New York, on or William R. Hou!h &: Co. Dated: February 28, 1996 'Preliminary, subject to change >0 '" " .... .n '" o£i ....== v, c<> .....c. '" '" ~ 0 >oC c<> >0 E " ¿ .... .c 0 o O"..¡:j c..... u :EQ>~ o :t: ,- ~ ~ .~ .cc<>.c. .........u 00" C C '" >00>0 C'O -- I: E1ií'" c=Eo "cv ~ (J) .... 0 ;;: 0.> en '" .c.o.>- 'U.c.en 0.> ..... 0.> :êo~ u = ::::J en 0.> u 0.> en 0.> 'Uoen en ..... 0.> Q):r....::ë ~~r; ,,0= u C c.. 3> '" c.. '" 0.> '" 0.> ..... 0.> en".c. q.>:=:..... .c......... I- '" 0.> C'U a.> 0 c: .~ ~ ~ ..... C C g 0.> ,Ç! _ECt; " 0.> u ~E~ :'!::: (J) C'O ;;: - " '" CT Q,) "u )- g':ï= ~ ~Oo u ~:.¡::: _ ctJ ~ o.>c..... .J:: -- (/) ..... E ,- 0= g> ~ 0.> .... o .... 0 .....c....... C en .... Q,) "- 0 E ..r::: .- "C ;; Ci C "'- Q).J::..2 E en ;;: '" en '" ¿~§ o C :;:::; ctJ Q,) o.>......c _ en c..E'U E":S o U 0 U '13 ;;: .Bo~ - C '" U .... en B~ 0 " C C en ::> 0 Q,) -:;:::; .... E '" ctJ _ :!::: s:: 0 ,~ '(1) :: "0 .... '" '" 0.> C - .J::;';:- ~,;: ~ C 'U 0 'm Q,) .J:: *( 1: ~ g o ,- (/) f U ã3 .J:: C -c .~ o (/) .r: .. :;::; ,- ;;: .. ctJ 'E~c-+ E 0.> ,~ 5 E § 'E~:;:::; ,- m u Q,) - ,- .c.en'U - rn-~ 'U ,- " C U .- '" :ï= >0 cOæ 0.> 0.> C E .c. ,- 0.> - en ..... 0.> 0.> ß E :-e en ,- .... ..... " rn Q,) U "ü ::; ~ :ï= 0 0.> 0.....'" 5 0.> ".",_ .c. ....' .... ..... ,S~o E 0.> 0.> ~c.rn e Q,) (/) c.. U >0 U C "~ m m .c. 0.> 0.> I- .c .c . " . . .. J.t Tampa, about I\Tarch _9c Price 2000 9c and co Notes witl, Certain legal that the Series Esquire It is expected 1996 "'" t CITY OF CLERMONT, FLORIDA 1 Westgate Plaza Clermont, Florida 34711 CITY COUNCIL Robert A. Pool, Mayor Lester Cole Kenneth E. Norquist John Sargent Ann K. Dupee CITY OFFICIALS Wayne Saunders, City Manager Joseph E. Van Zile, Finance Director and City Clerk CITY ATTORNEY Leonard Baird, Jr. , Esquire NOTE COUNSEL Foley & Lardner Jacksonville, Florida FINANCIAL ADVISOR Public Financial Management, Inc Fort Myers, Florida FEASIBILITY CONSULTANT Hartman & Associates, Inc Orlando, Florida . . . . . No dealer, broker, salesperson or other person has been authorized by the City or the Underwriter to give any information or to make any representations with respect to the Series 1996 Notes other than as contained herein, and, if given or made, such information or representations must not be relied upon as having been authorized by any of the foregoing. This Official Statement is not to be construed as a contract with the purchasers of the Series 1996 Notes. 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 1996 Notes by any person to make such offer, solicitation or sale. The information set forth herein has been obtained from the City, public documents, records and other sources which are believed to be reliable but is not guaranteed as to accuracy or completeness by, and is not to be construed as a representation of, the City or the Underwriter. The information and expressions of opinion stated herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall create, under any circumstances, any implication that there has been no change in the affairs of the City since the date hereof or the earliest date as of which such information is given IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE SERIES 1996 NOTES AT LEVELS ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. . . , . . All summaries herein of documents and agreements are qualified in their entirety by reference to such documents and agreements, and all summaries herein of the Series 1996 Notes are qualified in their entirety by reference to the form thereof included in the aforesaid documents and agreements. NO REGISTRATION STATEMENT RELATING TO THE SERIES 1996 NOTES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION (THE "COMMISSION") OR WITH ANY STATE SECURITIES COMMISSION. THE SERIES 1996 NOTES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. TABLE OF CONTENTS Page 1 INTRODUCTION 2 2 2 2 PURPOSE OF SERIES 1996 NOTES DESCRIPTION OF THE SERIES 1996 NOTES . General . . . . . . . . . . . . . . . . Negotiability, Registration and Transfer 3 3 4 6 SOURCE OF PAYMENT AND SECURITY FOR THE SERIES 1996 NOTES . General . . . . . . . Prior Lien Obligations Public service Taxes .. ^- . '!' ~... . 7 7 10 SCHEDULE OF PUBLIC SERVICE TAX COLLECTIONS Flow of Funds. .. . Rate Covenant. . ....-- ~ ...... 10 10 i THE WATER AND SEWER SYSTEM THE PROJECT RATES AND CHARGES FOR THE SYSTEM 11 HISTORICAL AND PROJECTED STATEMENT OF OPERATING RESULTS OF THE WATER AND SEWER SYSTEM . · · · · · · · · · · · 13 THE CITY . · · · · · · · · · · · · · · · · · · · · · · 14 ESTIMATED SOURCES AND USES OF FUNDS · · · · · · · · · · 14 ESTIMATED COMBINED DEBT SERVICE REQUIREMENTS · · · · · 15 LEGALITY . · · · · · · · · · · · · · · · · · · · · · · 15 TAX MATTERS · · · · · · · · · · · · · · · · · · · · · 15 Federal Tax Matters · · · · · · · · · · · · · · · 15 Florida Tax Matters . · · · · · · · · · · · · · · 17 Original Issue Discount · · · · · · · · · · · · · 17 UNDERWRITING · · · · · · · · · · · · · · · · · · · · · 18 SECONDARY MARKET DISCLOSURE · · · · · · · · · · · · · · 18 ENFORCEABILITY OF REMEDIES · · · · · · · · · · · · · · 18 LITIGATION · · · · · · · · · · · · · · · · · · · · · · 19 GENERAL PURPOSE FINANCIAL STATEMENTS · · · · · · · · · 19 FINANCIAL ADVISOR . · · · · · · · · · · · · · · · · · · 19 MISCELLANEOUS . · · · · · · · · · · · · · · · · · · · 19 DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS · · 20 AUTHORIZATION OF AND CERTIFICATION CONCERNING OFFICIAL STATEMENT . · · · · · · · · · · 20 APPENDIX A GENERAL INFORMATION CONCERNING CITY OF CLERMONT FLORIDA AND LAKE COUNTY APPENDIX B CITY OF CLERMONT, FLORIDA GENERAL PURPOSE FINANCIAL STATEMENTS AND OTHER INFORMATION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1994; AUDITED WATER AND SEWER FUND FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1995 APPENDIX C NOTE RESOLUTION APPENDIX D FEASIBILITY REPORT OF HARTMAN & ASSOCIATES APPENDIX E FORM OF NOTE COUNSEL OPINION APPENDIX F FORM OF CONTINUING DISCLOSURE CERTIFICATE ii City Clerk A TrEST: By 5 Robert A. Pool Mayor Dated SECTION 10. OBLIGATED PERSONS. If any person, other than the Issuer, becomes an Obligated Person (as defined in the Rule) relating to the Series 1996 Notes, the Issuer shall use its best efforts to require such Obligated Person to comply with all provisions of the Rule applicable to such Obligated Person. March -' 1996 CITY OF CLERMONT, FLORIDA In the event of any amendment or waiver of a provision of this Disclosure Certificate, the Issuer shall describe such amendment or waiver in the provision of annual financial information containing the amended or waived operating data and financial information, and shaH include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or, in the case of a change of accounting principles, on the presentation) of annual financial information or operating data being presented by the Issuer. In addition, if the amendment or waiver relates to the accounting principles to be followed in preparing financial statements (i) notice of such change shall be given in the same manner as set forth in Section 3, and (ii) the Issuer for the year in which the change is made shan present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. (3) the amendment or waiver does not materially impair the interests of registered and beneficial owners as determined either by parties unaffiliated with the Issuer or obligated person or by an approving vote of the registered owners of the Series 1996 Notes pursuant to the terms of the Note Resolution. - . OFFICIAL STATEMENT . there are no SIDs in the State . As of the date of issuance of the Series 1996 Notes, of Florida. $8,060,000* City of Clermont, Florida Water and Sewer Revenue and Refunding Bond Anticipation Notes Series 1996 SECTION 5. REMEDIES; NO EVENT OF DEFAULT. The Issuer agrees that its undertaking pursuant to the Rule set forth above is intended to be for the benefit of the registered and beneficial owners of the Series 1996 Notes and shall be enforceable by any such registered or beneficial owner; provided that the right to enforce the provisions of this undertaking shall be limited to a right to obtain specific performance of the Issuer's obligations hereunder and any failure by the Issuer to comply with the provisions of this undertaking shall not be an event of default with respect to the Series 1996 Notes under the Note Resolution. INTRODUCTION The purpose of this Official Statement, which includes its cover page and all appendices, is to furnish information with respect to the issuance by the City of Clermont, Florida (the "City") of its Water and Sewer Revenue and Refunding Bond Anticipation Notes, Series 1996 (the "Series 1996 Notes") in the aggregate principal amount of $8,060,000* The Series 1996 Notes are being issued under the authority of and in full compliance with the Constitution and laws of the State of Florida, including Chapter 166, Part II, Florida Statutes, as amended, and other applicable provisions of law. The Series 1996 Notes are being issued more specifically pursuant to Resolution No. 900 adopted by the City Council of the City (the "City Council") on February 27, 1996, which authorized the issuance of Water and Sewer Revenue and Refunding Bond Anticipation Notes in one or more series (the "Original Resolution") and a resolution adopted on March , 1996 fixing the details of the Series 1996 Notes (the "Award ResolutioÏ1"). The Original Resolution and the Award Resolution are collectively referred to herein as the "Note Resolution". The Series 1996 Notes are to be issued in anticipation of the receipt by the City of the proceeds from the proposed sale of not exceeding $17,000,000 of its Water and Sewer Revenue and Refunding Bonds, Series 2000 (the "Series 2000 Bonds"). Concurrently with the adoption of the Note Resolution, the City Council adopted a resolution authorizing the issuance of the Series 2000 Bonds The Series 1996 Notes are special, limited obligations of the City payable solely from and secured by a lien upon and pledge of (i) the proceeds to be derived by the City from the sale of the Series 2000 Bonds, (ii) the proceeds to be derived by the City from the sale of bond anticipation notes issued to extend and renew the indebtedness evidenced by the Series 1996 Notes, (iii) the Pledged Revenues (as defined in the Note Resolution), which Pledged Revenues include the Net Revenues (as further defined and described herein) to be derived from the operation of the City's water and sewer system (the "System") and the proceeds to be derived by the City by reason of its levy and collection of its Public Service Tax (as defined in the Note Resolution), and (iv) until applied in accordance with the provisions of the Note Resolution, the proceeds of the Series 1996 Notes and all moneys, including investments thereof, in certain of the funds and accounts established pursuant to the Note Resolution, all in the manner and to the extent described in the Note Resolution (collectively, the "Pledged Funds"). The lien on the Net Revenues is junior and subordinate to the City's Prior Lien Obligations, as described under the heading "Prior Lien Obligations" herein * Preliminary, subject to change 1 . ~ .JI ., . - ~ ...- t ~. SECTION 6. INCORPORATION BY REFERENCE. The information required to be provided pursuant to Section 2(B) herein may be incorporated by reference from other documents, including official statements or debt issues of the Issuer or related public entities, which have been submitted to each of the NRMSIRs, the SID, if any, or the SEe. If the document incorporated by reference is a final official statement, it must be available from the MSRB. The Issuer shall clearly identify each document incorporated by reference. SECTION 7. DISSEMINATION AGENTS. 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 disseminating agent. Disclosure in full of all an obligated person under this payment SECTION 8. TERMINATION. The Issuer's obligations Certificate shall cease upon the legal defeasance, prior redemption, of the Series 1996 Notes, and/or when the Issuer no longer remains with respect to the Series 1996 Notes within the meaning of the Rule SECTION 9. AMENDMENTS. Notwithstanding any other provision of this Disclosure Certificate and the Note Resolution, the Issuer may amend this Disclosure Certificate and any provision herein may be waived, provided that the following conditions are satisfied waiver may only be made in connection with arises from a change in legal requirements, law, or change in the identity, nature or status of an obligated respect to the Series 1996 Notes or the type of business the amendment or n circumstances that (2) the undertaking, as amended or taking into account such waiver would, in the opinion of nationally recognized note counsel, have complied with the requirements of the Rule at the time of the original issuance of the Series 1996 Notes, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances: and 4 (1) a change change in person with conducted 3 city The Series 1996 Notes issued under the Note Resolution shall be and have all the qualities and incidents of negotiable instruments under the laws of the State of Florida, subject to the provisions for registration and transfer contained in the Note Resolution and in the Series 1996 Notes. So long as any of the Series 1996 Notes shall remain outstanding, the City shall cause to be maintained and kept, at the office of the Registrar, books for the registration and transfer of the Series 1996 Notes 2 Each Series 1996 Note shall be transferable only upon the books of at the office of the Registrar, under such reasonable regulations as the the The Issuer is required to provide the information described in Sections 2 and 3 above to any NRMSIR's that are subsequently established and approved by the SEe. According to an SEC press release dated June 26, 1995, a list of names and addresses of all designated NRMSIRs as of any point in time is available by calling the SEe's FAX On Demand Service at (202) 942-8088 from a telecopier machine and requesting document number 0206. The Series 1996 Notes, upon surrender thereof at the office of the Registrar with a written instrument of transfer satisfactory to the Registrar, duly executed by the Holder thereof or such Holder's attorney duly authorized in writing, may, at the option of the Holder thereof, be exchanged for an equal aggregate principal amount of registered Series 1996 Notes of the same maturity of any other authorized denominations (F) Moody's NRMSIR Public Finance Information Center 99 Church Street New York, New York 10007 Phone 800/339-6306 Fax: 212/553-1460 Negotiability Interest on the Series 1996 Notes will be payable by First Union National Bank of Florida, having its designated corporate trust office in Jacksonville, Florida, as Paying Agent, by check or draft mailed to the registered owner at the address shown on the registration books of the City maintained by First union National Bank of Florida, as Registrar and Paying Agent, on the fifteenth day of the month prior to each interest payment date, whether or not such day is a business day, provided that, at the request and expense of any registered owner, and at the option of the paying Agent, interest may be payable by wire transfer for the account of such registered owner. The principal of and premium, if any, on the Series 1996 Notes are payable at maturity or earlier redemption to the registered owner upon presentation and surrender of the Series 1996 Notes at the designated corporate trust office of the Paying Agent Registration and Transfer (E) The Series 1996 Notes shall be issued in fully registered form in denominations of $5,000 and integral multiples thereof and shall be dated, shall bear interest (payable semi-annually on June 1 and December 1 of each year commencing June 1, 1996) at the rates per annum and shall mature on the dates and in the amounts, all as set forth on the cover page of this Official Statement. General The Series 1996 Notes shall be issued by the City to provide funds for the following: (i) retirement of the City's outstanding line of credit in the approximate outstanding principal amount of $3,000,000; (ii) acquisition, construction and improvements to the System: and (iii) costs of issuance related to the Series 1996 Notes. DESCRIPTION OF THE SERIES 1996 NOTES (D) (C) PURPOSE OF SERIES 1996 NOTES capitalized terms not otherwise defined in this Official Statement shall have the same meanings assigned to such terms in the Note Resolution, a copy of which is attached hereto as Appendix C. The description of the Series 1996 Notes, the Note Resolution, and certain statutory provisions as well as the information from various reports and statements contained in this Official Statement are not comprehensive or definitive. All references to such documents, reports and statements are qualified by the actual content of such documents, reports and statements, copies of which may be obtained by contacting the Director of Finance, City of Clermont, Florida, 1 westgate Plaza, Clermont, Florida 34711, (904) 394-4081 or during the offering period of the Series 1996 Notes from Public Financial Management, Inc., financial advisor to the City (B) (A) Bloomberg Municipal P.O. Box 840 Princeton, New Jersey 08542-0840 Phone: 609/279-3200 Fax: 609/279-5962 Donnelly Financial Municipal Securities 559 Main Street Massachussets 01749 800/580-3670 The Bond Buyer Attn: Municipal Disclosure 395 Hudson Street New York, Phone Fax Phone Fax: Kenny Information Systems, Inc. Attention: Kenny Repository Service 65 Broadway, 16th Floor New York, New York 10006 Hudson, Phone 212/770-4595 212/797-7994 Disclosure Disclosure, Inc. Attn: Document Acquisitions/Municipal Securities 5161 River Road Bethesda, Maryland 20816 Phone: 301/951-1450 Fax: 301/718-2329 Archive New York 10014 212/807-3814 212/989-9282 Repositories . -- . and interest . delinquencies in Notes; City may prescribe, by the Holder thereof in person or by such Holder's attorney duly authorized in writing upon surrender thereof together with a written instrument of transfer satisfactory to the Registrar duly executed and guaranteed by the Holder or such Holder's duly authorized attorney. Upon the transfer of any such Series 1996 Note, the City shall issue, and cause to be authenticated, in the name of the transferee a new Series 1996 Note or Notes of the same aggregate principal amount and maturity as the surrendered Series 1996 Note. The City, the Registrar and any Paying Agent or fiduciary of the City may deem and treat the person in whose name any Outstanding Series 1996 Note shall be registered upon the books of the City as the absolute owner of such Series 1996 Note, whether such Series 1996 Note shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal or Redemption Price, if applicable, and interest on such Series 1996 Note and for all other purposes, and all such payments so made to any such Holder or upon such Holder's order shall be valid and effectual to satisfy and discharge the liability upon such Series 1996 Note to the extent of the sum or sums so paid and neither the City nor the Registrar nor any Paying Agent or other fiduciary of the City shall be affected by any notice to the contrary. 1996 the Series on of principal the payment non-payment related defaults (A) (B) (C) on debt service reserves reflecting financial difficulties; unscheduled draws financial difficulties enhancements reflecting unscheduled draws on credit (D) to perform; tax-exempt status of the Series liquidity providers, or their failure the adverse tax opinions to or events affecting 1996 Notes: or substitution of credit (E) (F) SOURCE OF PAYMENT AND SECURITY FOR THE SERIES 1996 NOTES - rights of the registered owners of the Series 1996 Notes mandatory to any call of the Series 1996 Notes (other than scheduled redemption) or any acceleration of the maturity thereof; modifications (G) (H) The principal of, premium, if any, and interest on the Series 1996 Notes are payable solely from and are secured by a lien on and pledge of (i) the proceeds to be derived by the City from the sale of the Series 2000 Bonds, (ii) the proceeds to be derived by the City from the sale of bond anticipation notes issued to extend and renew the indebtedness evidenced by the Series 1996 Notes, if any, and (iii) the Pledged Revenues (as defined in the Note Resolution). The Pledged Revenues include the Net Revenues (as further defined and described below) to be derived from the operation of the Issuer's water and sewer system (the "System"), and the proceeds to be derived by the City by reason of its levy and collection of its Public Service Tax (as defined in the Note Resolution). Also, the Series 1996 Notes are secured by, until applied in accordance with the provisions of the Note Resolution, the proceeds of the Series 1996 Notes and all moneys, including investments thereof, in certain of the funds and accounts established pursuant to the Note Resolution, all in the manner and to the extent described in the Note Resolution. The lien in favor of the holders of the Series 1996 Notes on the Net Revenues is junior, subordinate and inferior in every respect to the lien thereon securing (i) the Arcadia Loan and (ii) the Gulf Breeze Contingent Obligations (as such terms are defined herein). See "SOURCES OF PAYMENT AND SECURITY FOR THE SERIES 1996 NOTES - Prior Lien Obligations" herein. General of the Series 1996 Notes release, substitution, or sale of property securing repayment of the Series 1996 Notes in whole or in part defeasance (I) (J) or any other Notes the Series 1996 to rating assigned and any change in the obligations of the (K) to meet the requirements Issuer of the the part Issuer; notice of any failure on Section 2(B) hereof. (L) of The Series 1996 Notes shall not be and shall not constitute an indebtedness of the City or the State of Florida or any political subdivision thereof within the meaning of any Constitutional, statutory, charter or other limitation of indebtedness, and neither the full faith and credit nor the taxing power of the City, the State of Florida, or any political subdivision thereof, are pledged or obligated as security for the payment of the principal of or interest on any Series 1996 Notes. The holders of the Series 1996 Notes shall have no right to compel the exercise of the ad valorem taxing power of the City or taxation in any form of real property therein to pay the Series 1996 Notes or the interest thereon. The Issuer may from time to time, in its discretion, choose to provide notice of the occurrence of certain other events, in addition to those listed in Section 3, if, in the judgment of the Issuer, such other events are material with respect to the Series 1996 Notes, but the Issuer does not specifically undertake to commit to provide any such additional notice of the occurrence of any material event except those events listed above. Any voluntary inclusion by the Issuer of supplemental information that is not required hereunder shall not expand the obligations of the Issuer hereunder and the Issuer shall have no obligation to update such supplemental information or include it in any subsequent report. As defined in the Note Resolution, Revenues less Operating Expenses ~ . .. .. ",- AND SIDs. As of the date of issuance of the Series 1996 the Issuer shall provide the information described in Sections required, shall be the following organizations, their successors SECTION 4. NRMSIRs the NRMSIRs to which to the extent Notes, 2 and 3 above, and assigns s Gross The Note Resolution defines "Gross Revenues to mean all income and moneys, excluding certain assessments and Impact Fees, received by the City from the Rates (as defined in the Note Resolution), or otherwise received by the City or 3 means the System' Net Revenues .. .,..' 2 accruing to the City in the management and operation of the system, calculated in accordance with generally accepted accounting principles employed in the operation of public utility systems similar to the System, including, without limiting the generality of the foregoing, all earnings and income derived from the investment of moneys under the provisions of the Note Resolution which are transferred to the Revenue Fund as provided in the Note Resolution The Note Resolution defines "operating Expenses" to mean the City's expenses for operation, maintenance, repairs and replacements with respect to the System and shall include, without limiting the generality of the foregoing, administration expenses, insurance and surety bond premiums, the fees of any rebate compliance service or of note counsel relating to compliance with the provisions of Section 148 of the Code, legal and engineering expenses, ordinary and current rentals of equipment or other property, refunds of moneys lawfully due to others, payments to others for disposal of sewage or other wastes, payments to pension, retirement, health and hospitalization funds, and any other expenses required to be paid for or with respect to proper operation or maintenance of the System, all to the extent properly attributable to the System in accordance with generally accepted accounting principles employed in the operation of public utility systems similar to the System, and disbursements for the expenses, liabilities and compensation of any paying Agent or Registrar under the Note Resolution, but does not include any costs or expenses in respect of original construction or improvement other than expenditures necessary to prevent an interruption or continuance of an interruption of the Gross Revenues or minor capital expenditures necessary for the proper and economical operation or maintenance of the System, or any provision for interest, depreciation, amortization or similar charges. The Note Resolution defines the "Excise Taxes" to mean the proceeds to be derived by the City by reason of its levy and collection of its Public Service Tax Public Service Tax" is defined to mean the excise tax levied and collected by the City on every purchase of electricity, metered or bottled gas (natural, liquified, petroleum gas or manufactured), water service and telecommunication service within the corporate territorial limits of the Issuer pursuant to the provisions of Ordinance No. 156 duly enacted by the Issuer on september 24, 1957, as amended and supplemented, and as codified in sections 21-1 through 21-18 of Chapter 21, Code of Ordinances, City of Clermont, Florida, as amended, enacted pursuant to Section 166.231, Florida Statutes, as amended, formerly Section 167.431, Florida Statutes. The proceeds of the sale of the Series 1996 Notes shall be and constitute trust funds for the purposes provided in the Note Resolution and there is a lien upon such money, until so applied, in favor of the Holders of the Series 1996 Notes The City in the Note Resolution has covenanted and agreed with the holders of the Series 1996 Notes that it will not hereafter issue any additional obligations payable from the Pledged Funds or any portion thereof having a lien superior to or on a parity with the Series 1996 Notes Prior Lien Obligations The lien in favor of the holders of the Series 1996 Notes on the Net Revenues is junior, subordinate and inferior in every respect to the lien thereon securing (i) the indebtedness and other obligations of the City (the "Arcadia Loan") under and pursuant to that certain Loan Agreement dated as of July 1, 1993 (the "Arcadia Loan Agreement"), among NationsBank of Florida, N.A., as trustee, the City of Arcadia, Florida, and the City, which is currently outstanding in the aggregate principal amount of $3,475,000, and (ii) the obligation of the City to pay any amounts that may become due under and pursuant to Sections 3(C), 4 or 5 4 This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by the City of Clermont, Florida (the "Issuer") in connection with the issuance of its $ Water and Sewer Revenue and Refunding Bond Anticipation Notes, Series 1996 (the "Series 1996 Notes"). The Series 1996 Notes are being issued pursuant to Resolution No. 900 adopted by the City Council of the Issuer (the "Council") on February 27, 1996, as supplemented (the "Note Resolution"). The Issuer covenants and agrees as follows: SECTION 1. PURPOSE OF DISCLOSURE CERTIFICATE. Certificate is being executed and delivered by the Issuer for the benefit beneficial owners of the Series 1996 Notes and in order to underwriters of the Series 1996 Notes in complying with requirements of Rule 15c2-12 promulgated by the Securities ("SEC") pursuant to the Securities Exchange Act of 1934 (the SECTION 2. NATURE OF UNDERTAKING. The Issuer shall provide to each nationally recognized municipal securities information repository described in Section 4 hereof (the "NRMSIRs"), and to any state information depository that is established within the State of Florida (the "SID"), on or before April 30 of each year, commencing April 30, 1996 (or, in the case of audited financial statements, 30 days after such later time as the Issuer completes its audited financial statements for its prior Fiscal Year), the following information: (A) audited financial statements of the Issuer for the immediately preceding Fiscal Year prepared in accordance with Generally Accepted Accounting Principles, as modified by applicable State of Florida requirements and the governmental accounting standards promulgated by the Government Accounting Standards Board: and (B) an update with the sale of the Series and "Rates and Charges for In addition, the Issuer shall provide to each NRMSIR and the SID, if any, its Comprehensive Annual Financial Report (the "CAFR") for the immediately preceding Fiscal Y ear when and if such CAFR becomes available. For purposes of this Disclosure Certificate, "Fiscal Year" means the period commencing on October 1 and ending on September 30 of the next succeeding year, or such other period of time provided by applicable law. SECTION 3. REPORTING SIGNIFICANT EVENTS. The Issuer shall provide each NRMSIR or the Municipal Securities Rulemaking Board (the "MSRB") and to the SID, on a timely basis, notice of any of the following events, if such event is deemed to have a material effect on the Series 1996 Notes or the Issuer's ability to satisfy its payment obligations with respect to the Series 1996 Notes FORM OF CONTINUING DISCLOSURE CERTIFICATE of the tables in the 1996 Notes entitle-1 as the System" j tal Official ,u "Schedule annual financial Statement prepared in connection of Public Service Tax Collections" information. Disclosure registered and assist the underwriter or the continuing disclosure and Exchange Commission 'Rule"). This of the e (the "Gulf Breeze Contingent Obligations") of that certain First Supplemental Loan Agreement dated as of July 1, 1993 (the "Gulf Breeze Supplemental Loan Agreement"), between SunTrust Bank, Central Florida, National Association, formerly known as Sun Bank, National Association, as trustee (the "Gulf Breeze Trustee"), Lane Gilchrist, Mayor, City of Gulf Breeze, as administrator (the "Administrator"), and the City, amending and supplementing that certain Refunding Loan Agreement dated as of July 1, 1988, between the Gulf Breeze Trustee, the Administrator and the City, which provided for a loan (the "Gulf Breeze Loan") to the City (the Arcadia Loan and the Gulf Breeze Contingent Obligations are hereinafter referred to collectively as the "Prior Lien Obligations") -- The proceeds of the Arcadia Loan were used by the City to: (a) fund an escrow in an amount which, together with the investment earnings thereon, will be sufficient (i) to pay the principal of and interest on the Gulf Breeze Loan when due to and including December 1, 1998 (the "Prepayment Date"), and to prepay all remaining principal, together with the applicable redemption premium, on the Gulf Breeze Loan on the Prepayment Date (collectively, the "Remaining Gulf Breeze Debt Service"), and (ii) to pay the City's expected pro rata share of certain non-asset bonds, including deferred and unpaid administrative expenses, relating to the Gulf Breeze Loan on the Prepayment Date (the Non-Asset Bond Amount," which together with the Remaining Gulf Breeze Debt Service, is referred to as the "Prepayment Requirement"); and (b) to advance refund certain outstanding obligations of the City. Pursuant to the Arcadia Loan Agreement, debt service on the Arcadia Loan from the Net the City is obligated to pay the Revenues In connection with the Arcadia Loan, the City entered into the Gulf Breeze Supplemental Loan Agreement, which provided for the payment by the City of the Prepayment Requirement and the Gulf Breeze Contingent Obligations. The Gulf Breeze Contingent Obligations require the City to pay on or before the Prepayment date, as the case may be, (i) the City's pro-rata share of certain expenses relating to the Gulf Breeze Loan Program whenever the amounts available therefor under the Indenture relating to the Gulf Breeze Loan Program (the "Gulf Breeze Indenture") are insufficient to fully pay such expenses prior to the Prepayment Date, (ii) any insufficiency in the amount deposited into escrow by the City to pay the Prepayment Requirement and (iii) any payment required to be made by the City as a result of a liquidation of the investments held in certain reserve funds established under the Gulf Breeze Indenture as a result of a draw on such reserve funds, all in the manner and to the extent provided in the Gulf Breeze Supplemental Loan Agreement and the Gulf Breeze Indenture. Upon the prepayment of the Gulf Breeze Loan on the Prepayment Date, the City's obligation to pay the Gulf Breeze Contingent Obligations will terminate . . [This page IntentIOnally left blank] In connection with the Arcadia Loan, the City received a report from a firm of independent certified public accountants verifying that the amount deposited into escrow as described above to pay the Remaining Gulf Breeze Debt Service, together with the investment earnings thereon, will be sufficient to pay the Remaining Gulf Breeze Debt Service as the same shall become due. The City believes that the amount deposited into escrow as described above to pay the Non- Asset Bond Amount, together with the investment earnings thereon, will be sufficient to pay the Non-Asset Bond Amount on the Prepayment Date. Although the Gulf Breeze Contingent Obligations cannot be quantified at the present time, the City believes that either (i) no Net Revenues will be required to pay any Gulf Breeze Contingent Obligations, or (ii) in the event that any Net Revenues should be required to pay any Gulf Breeze Contingent Obligations, the amount of such Net Revenues would not be material and would not adversely affect the ability of the City to timely pay the principal of and interest on the Series 1996 Notes 5 '.. .. ... .. ~ ..,' or ::>11qnd 9 Lpns ual¡:+ l¡:+uow .:rad s.:rn0l¡ :+:+'!?M.0l1){ Á:+au1u :+s.:r1 J al¡:+ .:r0J x'!?J. a::>1h.:ras al¡:+ JO U01:+.:rod Á:+1::>1.:r:+:Jala aln wo.:rJ pa:+dwaxa a.:r'!? s:+1un 6U111aM.P 1'!?1:+uap1saa anp s:+unow'!? al¡:+ 6u1:+:+1wa.:r pu'!? su01:+:Jall0::> Isp.:ro::>a.:r JO 6U1daa){ al¡:+ .:r0J u01:+'!?suadwo::> s'!? paM.0ll'!? S1 u01:+:Jnpap al¡J. ·a:Ju'!?:+:+1wa.:r .:r0J pa:+::>all0::> :+unow'!? al¡:+ wo.:rJ U01:+::>npap '!? 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Also, the Public Service Tax is not charged with respect to any fuel adjustment charge on the bill. -- . . and Commission Mayor the City 1996 The Honorable Members of Exempted from the City's Public Service Tax are: (a) Federal, state and local governments and agencies thereof, (b) purchase of telecommunication service for hire or resale, (c) purchases of telecommunication services by any recognized church if used exclusively for church purposes, and (d) fifty percent (50%) of the purchases by businesses located within the City's enterprise zone. The City Commission is solely responsible for setting or revising the Public Service Tax it levies, which it accomplishes through amendments and supplements to the Public service Tax Ordinance. The following table sets forth Public Service Tax collections of the City fiscal years 1990/1991 through 1999/2000. CITY OF CLERMONT SCHEDULE OF PUBLIC SERVICE TAX COLLECTIONS 1990-2000 (1) for It is to be understood that the rights of the holders of the Notes and the enforceability of the Notes and the Resolution may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted to the extent constitutionally applicable and that their enforcement may also be subject to the exercise of judicial discretion in appropriate cases Page 4 Respectfully submitted 915 617 033 146 075 830 435 007 819 555 Total , , , , , , , , , , 438 459 516 593 652 710 787 870 959 1.056 $ Water 637 104 398 326 307 275 515 110 206 861 , , , , , , , , , , 19 21 22 21 26 27 31 36 41 46 $ 202 489 103 441 077 280 531 832 185 593 Gas , , , , , , , , , , 21 27 29 30 30 31 32 33 35 36 $ Telecom 698 229 832 525 000 800 470 590 829 953 , , , , , , , , , , 99 103 121 146 172 197 227 261 300 345 $ Electric 378 795 700 854 691 475 919 475 599 148 , , , , , , , , , , 298 307 342 394 423 454 495 538 582 627 $ 2 Fiscal Year 1990-1991 1991-1992 1992-1993 1993-1994 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 1990 through Year Fiscal City. Source: City of Clermont, Finance Department; 1994 and from audited financial reports of the 1 data and growth projections based upon historical Projections 2 Flow of Funds The City has covenanted and agreed in the Note Resolution to establish with more authorized depositories the following separate funds and accounts: one or Water and Sewer System Revenue Fund 1 Payment Notes Taxes Fund Anticipation Bond Public Service Excise 2 - Revenue Sewer Water and Account. 3 It It:' ~ Fund Impact Fees Water and Sewer System 4 Water and Sewer System Rate Stabilization Fund 5 ... Rebate Fund The City may establish by supplemental resolution such other funds and accounts as it shall deem necessary or advisable 7 Water and Sewer Revenue Bond Anticipation Notes 6 E-4 8 (B) Impact Fees The City shall deposit into the Impact Fees Fund all Available Impact Fees, promptly upon receipt thereof. The moneys in the Impact Fees Fund (i) may, to the extent such moneys may be lawfully used for such purpose, be applied at the discretion of the City (1) for deposit into the Notes Payment Account whenever the moneys on deposit therein, after applying the Net Revenues in the manner provided in paragraph (A) above, are insufficient for the purposes set forth therein, (2) for the acquisition and construction of Expansion Facilities, and (3) for the purchase or redemption of the Series 1996 Notes; and (ii) shall, to the extent moneys on deposit in the Notes Payment Account are or are expected to be insufficient to pay the principal of and interest on the Series 1996 Notes coming due on any principal and interest payment date for the Series 1996 Notes, be deposited into the Notes Payment Account on or prior to such principal and interest payment date (but in no event earlier than the 15th amended, and Indenture Act We express respect to the Notes 6 The Notes the Resolution of 1939. as amended E-3 are exempt from registration under the Securities Act of 1933, as is exempt from qualification as an indenture under the Trust (3) Rate Stabilization Fund. The balance of any moneys remaining in the Revenue Fund after the payments and deposits required by parts (1) and (2) of this paragraph (A) shall be deposited into or credited to the Rate Stabilization Fund. The moneys on deposit in the Rate Stabilization Fund may be transferred, at the discretion of the City, to any other appropriate fund or account of the City and be used by the city for any lawful purpose, including, but not limited to, the payment of the principal of or Redemption Price, if applicable, and interest on the Series 1996 Notes or any Subordinated Indebtedness hereafter issued by the City; provided, however, that on or prior to each principal and interest payment date for the Series 1996 Notes (in no event earlier than the fifteenth day of the month next preceding such payment date), moneys in the Rate Stabilization Fund shall be deposited into the Notes Payment Account when the moneys therein are or are expected to be insufficient to pay the principal of and interest on the series 1996 Notes coming due 2) credit to paragraph Notes Payment Account. Next, the City shall deposit into or the Notes Payment Account such sums as are described in D) below. (1) Operation and Maintenance Amounts in the Revenue Fund shall be used first to pay reasonable and necessary Operating Expenses for the next ensuing month; provided, however, that no such payment shall be made if such payment of Operating Expenses shall have been provided for pursuant to the provisions of the Arcadia Loan documents or shall be made unless the provisions of Section 5.4 of the Note Resolution in regard to the current Annual Budget are complied with no opmlOn The Notes are "qualified tax-exempt obligations" within the meaning of Section of the Code, and, in the case of certain financial institutions (within the meaning of 65(b)(5) of the Code), a deduction is allowed for 80% of that portion of the interest expense of such financial institutions which shall be allocable to interest on the Notes. 5 Interest on the Notes (including any original issue discount properly allocable to the holders thereof) (a) is excluded from gross income for federal income tax purposes and (b) is not an item of tax preference for purposes of the federal alternative minimum tax applicable to all taxpayers; provided, however, that interest on the Notes is included in "adjusted current earnings" for purposes of calculating the alternative minimum tax imposed on corporations. The opinion set forth in clause (a) above is subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended (the "Code"), that must be satisfied subsequent to the issuance of the Notes in order that interest thereon be (or continue to be) excluded from gross income for federal income tax purposes. Failure to comply with certain of such requirements could cause the interest on the Notes to be so included in gross income retroactive to the date of issuance of the Notes The Issuer has covenanted to comply with all such requirements 265(b)(3) Section 2 regarding other federal tax consequences arising with (A) Revenues. Whenever, from time to time, at any time the Net Revenues shall have been applied sufficiently for minimum compliance with the covenants, requirements and provisions of the documents relating to the Prior Lien Obligations (with the required deposits for the Prior Lien Obligations to be made monthly), the balance of any and all Net Revenues on deposit in the "Revenue Fund" created and established for the benefit of the Arcadia Loan which shall be in excess of the minimum requirements for compliance with such covenants, requirements and provisions of such documents shall forthwith, and not less frequently than monthly, be deposited into the Revenue Fund created by the Note Resolution. Whenever the said covenants, requirements and provisions of the documents relating to the Prior Lien Obligations shall no longer require deposit of Net Revenues for the payment of the Prior Lien Obligations, the City shall deposit all Gross Revenues into the Revenue Fund, promptly upon the receipt thereof. On or before the last day of each month, commencing with the month in which delivery of the Series 1996 Notes shall be made to the purchasers thereof, the moneys in the Revenue Fund shall be deposited or credited in the following manner and in the following order of priority: 4 The Notes and the interest thereon are exempt from taxation under the laws of the State of Florida, except as to estate taxes and taxes on interest, income or profits on debt obligations owned by corporations. as defined by Chapter 220, Florida Statutes, as amended and are valid terms. Page 3 2 The Resolution has and binding obligation of the 3 The Notes have been duly and binding special obligations of been duly adopted by the Issuer and constitutes a valid Issuer enforceable upon the Issuer in accordance with its terms authorized, executed and delivered by the Issuer the Issuer enforceable in accordance with their The following summarizes the flow of funds set forth in the Note Resolution additional defined terms as defined in the Note Resolution): The Honorable Mayor and Members of the City Commission 1996 · day of the month next preceding such payment date); provided, however, that the aggregate amount of Available Impact Fees applied by the City pursuant to clauses (i)(l) and (ii) to pay the principal of, Redemption Price, if applicable, and interest on the Notes shall not exceed the Impact Fees Debt Service Limit; and provided further, however, that the aggregate amount of Available Impact Fees applied by the City pursuant to clause (i)(3) shall never exceed the aggregate Impact Fees Debt Service Components determined for all Notes - - - The Honorable Mayor and Members of the City Commission 1996 Page 2 (C) Excise {Public Service} Taxes. The City shall deposit all Excise (Public Service) Taxes into the Excise Taxes Fund created by the Note Resolution, promptly upon receipt thereof. On or before the last day of each month, commencing with the month in which the delivery of the Series 1996 Notes shall be made to the purchasers thereof, the moneys in the Excise Taxes Fund shall be deposited or credited in the following manner and in the following order of priority: Resolution) to be derived from the operation of the System and the Excise Taxes (as defined in the Resolution), and (iv) until applied in accordance with the provisions of the Resolution, the proceeds of the Notes and all moneys, including investments thereof, in certain of the funds and accounts established pursuant to the Resolution, all in the manner and to the extent described in the Resolution (collectively, the "Pledged Funds") Notes Pavment Account. The City shall deposit into or credit Payment Account such sums as are described in (D) below (2) Surplus Moneys. The balance of any moneys remaining in the Excise Taxes Fund after the payments and deposits required by subparagraph (1) of this paragraph (C) may be transferred, at the discretion of the City, to any other appropriate fund or account of the City and be used by the City for any lawful purpose, including, but not limited to, the payment of the principal of, Redemption Price, if applicable, and interest on any Subordinated Indebtedness hereafter issued by the City. 1) to the Notes The lien in favor of the holders of the Notes upon the Net Revenues is junior, subordinate and inferior in every respect to the lien thereon securing (i) the indebtedness and other obligations of the Issuer under and pursuant to that certain Loan Agreement, dated as of July 1, 1993, among NationsBank of Florida, N.A., as trustee, the City of Arcadia, Florida, and the Issuer and (ii) the obligation to pay any amounts that may become due under and pursuant to Sections 3(C), 4 or 5 of that certain First Supplemental Loan Agreement, dated as of July 1, 1993, between Sun Bank, National Association, as trustee, Lane Gilchrist, Mayor, City of Gulf Breeze. as administrator, and the Issuer. (D) Notes Payment Account. The City shall deposit into or credit to the Notes Payment Account the proceeds of the Series 1996 Notes representing accrued and capitalized interest. The City shall deposit into or credit to the Notes Payment Account the sum which, together with the balance in said account, shall equal the interest on all Outstanding Notes accrued and unpaid and to accrue to the end of the then current calendar month (assuming that a year consists of twelve (12) equal calendar months of thirty (30) days each). Such deposit shall be made by the City (i) first, from moneys in the Revenue Fund, (ii) second, from moneys in the Rate Stabilization Fund, (iii) third, from moneys in the Impact Fees Fund to the extent provided in Section 4.5(B) of the Note Resolution, and (iv) fourth, from moneys in the Excise Taxes Fund. The City shall adjust the amount of the deposit into the Notes Payment Account not later than the month immediately preceding any Interest Date so as to provide sufficient moneys in the Notes Payment Account to pay the interest coming due on the Notes on such Interest Date. the Resolution has covenanted and agreed with the holders of the any additional obligations payable from the Pledged Funds superior to or on a parity with the Notes Issue lien The Issuer in will not hereafter Notes that it or any portion thereof having a The Notes and the interest thereon do not constitute a general indebtedness of the Issuer or a pledge of its faith and credit, but are payable solely from the Pledged Funds in the manner provided in the Resolution. No holder of any of the Notes shall ever have the right to compel the exercise of the ad valorem taxing power of the Issuer to pay the Notes or interest thereon or be entitled to payment of the Notes or interest thereon from any moneys of the Issuer except the Pledged Funds. The City shall also deposit into or credit to the Notes Payment Account from the Pledged Funds and, to the extent necessary, from any other funds of the City derived from sources other than ad valorem taxation, the sum required to pay the principal of and Redemption Price, if applicable, on all Outstanding Notes on the maturity date or the redemption date thereof, as the case may be. relied upon the proceedings and to verify the same by material to our opinion, we have in the Resolution and in the certified to us - without undertaking As representations of other certifications of public officials furnished independent investigation to questions of fact the Issuer contained Moneys on deposit to the credit of the Notes Payment Account shall be applied in the manner provided herein solely for the payment of the principal of or Redemption price, if applicable, and interest on the Notes and shall not be available for any other purpose. Until such moneys shall have been applied to such purpose, there shall be a lien upon all of the moneys of the Notes Payment Account in favor of the Holders of the Notes <. ...-. as follows we are of the opinion. under existing law the foregoing Based upon Any funds remaining on deposit to the credit of the Notes Payment Account after the principal of, Redemption Price, if applicable, and interest on the Notes shall have been paid in full shall be deposited in the Construction Fund or, if the Project shall have been completed and the Construction Fund closed, in the sinking fund for the Bonds, whereupon the Notes Payment Account shall be closed. 9 the State of contained of part 1 The Issuer is a duly created and validly existing municipality the power to adopt the Resolution, perform the agreements on its issue the Notes £-2 Florida with therein and 10 The primary purpose of the project is to construct the infrastructure necessary to provide utility services to the development areas along the state E-l The City authorized Springstead Engineering, Inc. ("Springstead") to inspect the City's System and provide an estimate for capital improvements that are required to meet the demands of the anticipated growth and development of the City. The City's current System does not have the capacity nor is the System sufficiently located to handle anticipated growth. The City also retained Hartman & Associates, Inc. to prepare a feasibility report for the Project funded by the Series 1996 Notes, which report is attached hereto as Appendix D anticipation notes Pledged Revenues The principal of, premium, if any, and interest on the Notes are payable solely from and secured by a lien upon and a pledge of (i) the proceeds to be derived by the Issuer from the sale of the Bonds, (ii) the proceeds to be derived by the Issuer from the sale of bond issued to extend and renew the indebtedness evidenced by the Notes, (iii) the (as defined in the Resolution), including the Net Revenues (as defined in the THE PROJECT The City currently provides wastewater service to approximately 2,800 connections. Unlike the water system, there is only one wastewater service area which provides services to all customers, both within and outside the corporate limits of the City. The wastewater treatment facility currently providing service has a permitted capacity of 0.95 million gallons per day (MGD) and is presently operating at approximately 77% capacity. The wastewater system contains 55 miles of transmission and gravity sewers together with 27 lift stations The Notes are issued pursuant to the Constitution and laws of the State of Florida, including particularly Chapter 166, Part II, Florida Statutes, as amended, and a resolution duly adopted by the City Commission on February _, 1996, as supplemented (the "Resolution"), to finance the cost of the acquisition, construction and installation of certain capital improvements to the Issuer's municipal water and sewer system (the "System") and the refunding of certain outstanding obligations of the Issuer, in anticipation of the receipt by the Issuer of the proceeds from the sale of not exceeding $ principal amount of its Water and Sewer Revenue and Refunding Bonds, Series 2000 (the "Bonds"). We have examined the law and such certified proceedings and other papers as we deem necessary to render this opinion The water system consists of three wells and two elevated storage tanks together with 45 miles of water transmission and distribution facilities. The quality of groundwater does not require treatment, only disinfection The City currently provides potable water service to approximately 3,500 connections. The water system is divided into two separate service areas defined as the "East System" and the "West System". The West System is the older of the two systems and serves primarily those customers within the immediate City limits consisting of approximately 2,960 (84.5%) of the total water customers. The East System resulted from an effort to efficiently expand the water service area and accommodate anticipated growth east of the City. This was accomplished through the acquisition of Lake Hills utilities, Inc., a water supply and distribution system that serves the Greater Hills and Greater Pines subdivisions. The East System currently provides service to approximately 540 (15.5%) of the total connections S CITY OF CLERMONT. FLORIDA WATER AND SEWER REVENUE AND REFUNDING BOND ANTICIPATION NOTES SERIES 1996 of We have examined certiíìed copies of the proceedings of the City Commission (the 'City Commission") of the City of Clermont, Florida (the "Issuer"), and other proofs submitted relative to the authorization. issuance and sale of and the security for the following described bond Notes anticipation notes (the Dated as ) 1996 THE WATER The City has covenanted in the Note Resolution to fix, establish, maintain and collect such Rates for the System and revise the same from time to time, whenever necessary, as will always provide in each Fiscal Year Net Revenues and Public Service (Excise) Taxes, together with (i) moneys on deposit in the Rate Stabilization Fund and (ii) moneys on deposit in the Impact Fees Fund to the extent such moneys do not exceed the Impact Fees Debt Service Limit, adequate at all times to pay in each Fiscal Year at least one hundred twenty five percent (125%) of the principal of and interest on the Prior Lien Obligations becoming due in such Fiscal Year and all reserve, sinking fund or other payments required under the Arcadia Loan becoming due in such Fiscal Year and at least one hundred percent (100%) of the current annual interest payments becoming due in such Fiscal Year on the Series 1996 Notes. Such Rates shall not be so reduced so as to be insufficient to provide Net Revenues fully adequate for the purposes provided therefore by the Note Resolution AND SEWER SYSTEM Ladies The Honorable Mayor and Members of the City Commission Clermont, Florida and Gentlemen Rate Covenant At least one (1) business day prior to the date established for payment of any principal of or interest on the series 1996 Notes, the City shall withdraw from the Notes Payment Account sufficient moneys to pay such principal or interest and deposit such moneys with the paying Agent for the Series 1996 Notes to be paid. 1996 FORM OF NOTE COUNSEL OPINION APPENDIX E - Road 50 corridor east of the City and US Highway 27 south of the City. As part of the Project, the City has recently acquired Lake Hills Utilities, Inc., a water supply and distribution network outside the City boundaries for the east side of the City. The City funded this acquisition and some additional improvements through a $3,000,000 line of credit. The City will retire this line of credit with funds provided by the Series 1996 Notes. The Springstead report recommends a new 0.75 MGD wastewater treatment facility be constructed to serve the east side development areas and receive flow from the existing treatment plant. By constructing a new facility, the amount of influent pumped to the City's existing wastewater facility will be reduced, thus increasing the amount of capacity remaining. - and improvement needs capital following identified the Spr ingstead has estimated costs: 909 708 909 005 , , , , $1,983 605 523 459 Improvements Wells and Pumping Elevated Storage Tank Transmission Lines EDB Water Lines 531 572 $3 Improvemants Water Total 804 582 054 052 000 889 , , , , , , $1,907 1,526 450 617 200 644 Improvements Treatment Plant Lift Stations List Station Rehabilitation Transmission Lines Generators Gravity Sewers Water utility Wastewater - 11 [This page intentionally left blank] $5,346,381 Improvemants Wastewater Total $8,918,912 These improvements, as described by Springstead Engineering, together with a further breakdown of the estimates of probable cost and permitting, are contained in the Hartman & Associates, Inc. Feasibility Report attached hereto as Appendix D Improvements Total utility AND CHARGES FOR THE SYSTEM RATES is as follows Water System West" which consists of all areas served by systems utilizing the 4th Street Well, Seminole Well, and Grand Highway Well: s System from the City for water schedule The basic rate :6: $4.85 Minimum Rate 3,000 first the after gallons 000 1 $1.10 per gallons Use: Additional "Water System East" which consists of all areas served by systems utilizing Hancock Well and East Wells #1 and #2: 000 gallons 1 per 11 11 $1.13 $9 Minimum Rate: Use Additional 12 COVERAGE On Debt Service, Without Impact Fees On BANs, Without Impact Fees 56 nJa 75 1.16 2,28 ,00 2,67 1.29 3,12 62 NET BALANCE CUMULATIVE $30,173 $240,642 $358,798 $599,439 $380,921 $980,360 $892,170 $1,872,530 Interest Payment On BAN Interest Payment On BAN Impact Fees - Water Impact Fees - Wastewater Transfer From Reserves - Water Transfer From Reserves - Wastewater Total Other Requirements $210,468 o 25 720 o o $28,553 190 71 132,504 65,000 o ($214,365) 430,717 45,000 o ($63,289) o ($165,447) o $204,798 [Remainder of page intentionally left blank Additional information concerning the rates System as well as information about existing and System is contained in the Hartman & Associates, Inc. hereto as Appendix D. and charges for the City's projected customers of the Feasibility Report attached OTHER REVENUES & Capital Outlay - Water Capital Outlay - Wastewater Tapping Expenses - West Tapping Expenses - East Transfer To General Fund Water Wastewater ($91,660) (43,392) (5,500) (20,000) (72,740) o ($97,420) (50,000) (5,600) (21,900) (81,030) 107,903) 103,672) 55,656 ($106,330) (55,304) (5,700) (24,000) (90,221) 215,807) 207,344) 165,699 408,527 o ($116,200) (61,210) (5,800) (26,300) (100,415) (215,807) (207,344) 159,102 702,089 o ($127,147) (67,787) (6,000) (28,900) (111,723) (215,807) (207,344) 267,417 The City has also established an automatic annual increase to all the System rates, fees, and charges based upon the applicable Florida Public Service Commission Annual Deflator Index percentage. The Annual Deflator Index percentage amount is currently 1.95%. This annual index adjustment shall first occur automatically on October 1, 1996 and shall continue to occur on October 1 of each year thereafter (REQUIREMENTS) $181,915 $244,538 $422,087 $546,368 $687,372 BALANCE Single-Family Multiple-Family Commercial 16,000 gallons 13,000 gallons per dwelling unit No maximum DEBT SERVICE 326,458 325,744 329.344 327,358 324,900 NET REVENUES $508,373 $570,282 $751,431 $873,726 $1,012,272 Customer Type In addition to the basic rate listed above, a variable rate is also charged of $1.21 based on each 1,000 gallons of water consumed monthly. The maximum amount of gallons subject to the variable rate charge per month is: Gallons TOTAL O&M EXPENSES TOTAL REVENUES 1 $1,628,950 120,577 ,239,621 $1,809,903 ,305.243 $2,056,674 1,384.193 $2,257,919 1,469,468 $2,481,740 The base charge for multiple family dwellings shall be $7.44 per dwelling unit per month. Multiple family dwellings include centrally metered apartments and mobile home parks, but does not include hotels, motels or recreational vehicle parks x 1" 1. 2" 3" 4" 6" 8" 5 1 2.5 5 8 16 25 50 80 9 23 46 74 148 232 465 744 . 30 25 50 40 80 50 00 00 Interest Other Subtotal OTHER OPEl .TING REVENUES Tapping Fees- Tapping Fees - E2 Interest On Series 1993 West 1st Debt Reserve $9,000 31,400 30,000 16,650 9,500 $96,550 $9,000 34,400 30,586 16,650 9,765 $100,401 $9,000 37,700 31,182 16,650 10,136 $104,668 $9,100 41,300 31,790 16,650 10,531 $109,371 $9,300 45,300 32,410 16,650 10,949 $114,609 Water System Wastewater System Subtotal $1 $727,400 805,000 532,400 $1 $810,302 899,200 709,502 $902,206 1,049,800 $1,952,006 $1 1 $2, ,004,148 144,400 148,548 $1,117,231 1,249,900 $2,367,131 5/8 3/4 $ Fiscal Year USER FEE AND CHARGE REVENUES Meter Size ERC Factor Monthly Base Charqe 1996 1997 1998 1999 2000 is The monthly basic rate as follows: schedule for sewer service from the City s System SCHEDULE 6 COMBINED SYSTEMS PROFORMA OPERATING STATEMENT C"1 ri .r::. 0 .... 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Q) .c....'O .¡..>.,.. .,.. ~.c~ O'¡">O ~~u OI~'O '¡">.¡..>S:: ~Q)cd 01 01 01 Q)'Os:: ~ s:: 0 cd·,.. 0\ .¡..> s:: '0 0. .,.. Q) e '¡">.Q;: cd.,.. 01 ~ ~ rn Q)ucd 0.01 o Q) Q) Q)'O.c .c~.¡..> '¡">Q)~ ~:S0 o ~ s:: rn ;: 0 s::~.,.. o rn 01 .,.. cd 01 .¡..> ;: U ,U Q)~rn ·no·,.. OM'O ~~cd s:: ~ :J 0 O~ .c 010 - SCHEDULE 5 WASTEWATER SYSTEM PROFORMA OPERATING STATEMENT Wastewater System: - Notes Reserve Fund as to meet rate covenant requirements Assumes a 5% annual return on the wastewater portion of the Debt established by the outstanding Arcadia Loan. revenues necessary Additional (1) (2) Based on a 50% allocation of Arcadia Loan debt service to the wastewater system (3) funded from outside sources balance of $8,060,000, (2) 18 months of capitalized for five years, (4) first interest payment due June 1, and maintenance expenditures not Assumes one (1) original principal interest, (3) interest only payments 1997, and (5) a 51 % allocation to wastewater. Includes ongoing capital (4) (5) and East West and $2,374 for the impact fees of $1,304 Based on current wastewater systems, respectively. (6) . Interest. Assumes a minimum coverage and wastewater combined. (See Revenues divided by Debt Service. Net Revenues less Debt Service divided by BAN of 1.00 will be required by BAN resolution for water Schedule 6 for combined system results.) Net (7) (8) 16 Passive investment income, including interest on the Series 1996 Notes, may be subject to federal income taxation under Section 1375 of the Code for S corporations that have subchapter C earnings and profits at the close of the COVERAGE On Debt Service, w/out Impact On BAN, w/out Impact Fees Fees (1 (12) 1 86 nla 2,25 1.89 2.66 1.27 3,15 1.63 3,71 2,04 For foreign corporations that operate branches in the United States, Section 884 of the Code imposes a branch level tax on certain earnings and profits in tax years beginning after 1986. Interest on tax-exempt obligations, such as the Series 1996 Notes, may be included in the determination of such domestic branches' taxable base on which this tax is imposed NET BALANCE CUMULATIVE $139,853 $10,925 $150,778 Certain recipients of social security benefits and railroad retirement benefits are required to include a portion of such benefits in gross income by reason of the receipt or accrual of interest on tax-exempt obligations, such as the Series 1996 Notes Impact Fees Transfer From Reserves Total Other Requirements 190, 125 o $225 65,000 ($193,197) As environmental tax is imposed on corporations (other than S corporations, regulated investment companies, real estate investment trusts and REMICs) by Section 59A of the Code. The amount of the environmental tax is equal to 0.12% of the excess of the alternative minimum taxable income (determined without regard to net operating losses and the deduction for the environmental tax) over $2 million. The environmental tax may be imposed even if the corporation pays no alternative minimum tax liability. For purposes of the environmental tax, alternative minimum taxable income includes interest on tax-exempt obligations, such as the Series 1996 Notes, to the same extent and in the same manner as such interest is included in alternative minimum taxable income as described in the preceding paragraph. ($86,542) (10,878) (5,600) (21,900) (56,410) (24,620) (107,903) 55,656 $42,797 $193,575 ($94,457) (11,873) (5,700) (24,000) (58,336) (31,884) (215,807) 165,699 45,000 ($231,359) $46,963 $240,538 ($103,225) (12,975) (5,800) (26,300) (60,331) (40,084) (215,807) 159,102 o ($305,420) $218,256 $458,794 ($112,950) (14,197) (6,000) (28,900) (62,397) (49,326) (215,807) 267,417 o ($222,160) Interest on the Series 1996 Notes must be included in the "adjusted current earnings" of corporations (other than S corporations, regulated investment companies, real estate investment trusts and REMICs), and the alternative minimum taxable income of such corporations must be increased by 75% of the excess of adjusted current earnings over alternative minimum taxable income (determined without regard to this adjustment and prior to reduction for certain net operating losses). BALANCE DEBT SERVICE NET REVENUES (4) $139,628 $302,857 163,229 $204,122 $366,994 162,872 $274,156 $438,828 164,672 $352,383 $516,062 163,679 $440,416 $602,866 162,450 Insurance companies (other than life insurance companies) are required to reduce the amount of their deductible underwriting losses by 15% of the amount of tax-exempt interest received or accrued on certain obligations, including the Series 1996 Notes, acquired after August 7, 1986. If the amount of this reduction exceeds the amount otherwise deductible as losses incurred, such excess may be includable in income. Life insurance companies are subject to similar provisions under which taxable income is increased by reason of receipt or accrual of tax-exempt interest, such as interest on the Series 1996 Notes. o & M EXPENSES TOTAL OPERATING REVENUES Tapping Fees - Tapping Fees - Interest Interest On Series Other Subtotal 1993 Debt Reserve 3) 494,268 $797,125 $9,000 31,400 15,000 8,325 6,000 $69,725 516,443 $883,437 $9,000 34,400 15,293 8,325 6,117 $73,135 540,230 $979,058 $9,000 37,700 15,591 8,325 6,236 $76,852 569,064 $1,085,126 $9,100 41,300 15,895 8,325 6,358 $80,978 599,977 $1,202,843 $9,300 45,300 16,205 8,325 6,482 $85,612 Assuming the City can recertify certain representations and findings made by the City in the Note Resolution upon the issuance of the Series 1996 Notes, the Series 1996 Notes are "qualified tax-exempt obligations" (within the meaning of Section 265(b)(3) of the Code), and, in the case of certain financial institutions (within the meaning of Section 265(b)(5) of the Code), a deduction is allowed for 80% of that portion of the interest expense of such financial institutions which shall be allocable to interest on the Series 1996 Notes The Code contains numerous provisions which could affect the economic value of the Series 1996 Notes to certain owners of the Notes. The following is a brief summary of some of the significant provisions that may be applicable to particular owners of the Series 1996 Notes. prospective owners of the Series 1996 Notes, however, should consult their own tax advisors with respect to the impact of such provisions on their own tax situations West System East System Required Rate Adjustment Subtotal West East OTHER OPERATING REVENUES OTHER REVENUES & (REQUIREMENTS) Capital Outlay - West (5) ($81,425) Capital Outlay - East (5) (10,235) Tapping Expenses - West (6) (5,500) Tapping Expenses - East (6) (20,000) Transfer To General Fund - West (7) (54,550) Transfer To General Fund - East (7) (18,190) Interest Payment On BAN (8) 0 (9) (10) (2) 2) (I $545,500 181,900 o $727,400 $564,101 246,202 o $810,302 $583,364 318,841 o $902,206 $1 $603,312 400,836 o 004,148 $623,967 493,264 o $1,117,231 Fiscal Year USER FEE AND CHARGE REVENUES with the proceeds of the Series 1996 Notes and the application of of the Series 1996 Notes the proceeds 1996 SCHEDULE 4 WATER SYSTEM PROFORMA OPERATING STATEMENT ,./ 1997 1998 1999 2000 corporation the S - of receipts . taxable year if greater than 25% of the gross consists of passive investment income. Florida Tax Matters It is also the opinion of Note Counsel that, under existing law, the Series 1996 Notes and the interest thereon are exempt from taxation under the laws of the State of Florida, except as to estate taxes and taxes on interest, income or profits on debt obligations owned by corporations, as defined in Chapter 220, Florida Statutes, as amended. Issue Discount In the opinion of Note Counsel, under existing law, the original issue discount in the selling price of each Series 1996 Note (the "Discount Notes"), to the extent properly allocable to each owner of a Discount Note, is excluded from gross income for federal income tax purposes to the same extent that any interest payable on such Discount Note is or would be excluded from gross income for federal income tax purposes. The original issue discount is the excess of the stated redemption price at maturity of such Discount Note over the initial offering price to the public, excluding underwriters or other intermediaries, at which price a substantial amount of such Discount Notes were sold (the "issue price"). Under Section 1288 of the Code, original issue discount on tax-exempt bonds accrues on a compound interest basis. The amount of original issue discount that accrues to an owner of a Discount Note during any accrual period generally equals (i) the issue price of such Discount Note plus the amount of original issue discount accrued in all prior accrual periods multiplied by (ii) the yield to maturity of such Discount Note (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of each accrual period), less (iii) any interest payable on such Discount Note during such accrual period. The amount of original issue discount so accrued in a particular accrual period will be considered to be received ratably on each day of the accrual period, and will increase the owner's tax basis in such Discount Note. The adjusted tax basis in a Discount Note will be used to determine taxable gain or loss upon a disposition (e.g., upon a sale, exchange, redemption, or payment at maturity) of such Discount Note. If a Discount Note is purchased for a cost that exceeds the sum of the issue price plus accrued interest and accrued original issue discount, the amount of original issue discount that is deemed to accrue thereafter to the purchaser is reduced by an amount that reflects amortization of such excess over the remaining term of such Discount Note As described above regarding tax-exempt interest, a portion of the original issue discount that accrues in each year to an owner of a Discount Note may result in certain collateral federal income tax consequences. In the case of a corporation, such portion of the original issue discount will be included in the calculation of the corporation's alternative minimum tax liability, the environmental tax liability and the branch profits tax liability. Corporate owners of any Discount Notes should be aware that the accrual of original issue discount in each year may result in an alternative minimum tax liability, an environmental tax liability or a branch profits tax liability although the owners of such Discount Notes will not receive a corresponding cash payment until a later year. 7 þ who did not purchase such Discount Notes in the price should consult their own tax advisors with consequences of owning such Discount Notes. 17 Original Discount Notes at the issue Owners of initial offering respect to the tax e _ ,-...~ ,,-...,,-... r--'<t- or--'<t - v>v>oor-- r-- I/') co 0 Q\ V> co '<t co 0 <'I '00 0\ r-- O'<t'<t '<1"r--M V> <'1M '<1" 0\ Q o 00 ...: Q\ <'I' r--' r--' r--' '00' 00 .,¡ 00 ~ o N~~ \0\00 f'f"") _'-' '-' N t"- o co QO _ <'I '<1" ~ ~ N M ~ ~ ~ ~ '-" '-"~ ~ ¡::* V> '00 '<1" o 8 -.g ij ]~ '" C ) ~P=: ..........,,-...., ".-... ,,-..... 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It?~t?p 6u1~t?~ado put? u01~t?w~oJu1 1t?1~ut?u1J 1t?nuuv 's~uaAa 1B1~a~t?w pa~B~awnua U1t?~~a~ JO a~ua~~n~~o aq~ JO sa~1~ou ap1Ao~d o~ put? 1~t?aÁ q~t?a u1 sa~oN 966! sa1~as aq~ put? Á~1J aq~ o~ 6u1~t?1a~ t?~t?p 6u1~t?~ado pUB U01~t?w~OJu1 1B1~ut?u1J u1B~~a~ ap1Ao~d O~ s~ap10qa~oN 966! sa1~as JO ~1Jauaq aq~ ~OJ pa~ut?uaAO~ st?q Á~1J aq~ ~~nSO~~SIa ~~X~VH ^HVaNO~~S ~uawa~t?~S 1t?1~1JJO s1q~ JO a6Bd ~aAO~ aq~ uo q~~OJ ~as sa~1~d 6u1~aJJO ~11qnd aq~ ut?q~ ~aM01 sa~1~d ~B s~aq~o pue (s~sn~~ ~uaw~saAu1 0~u1 sa~ON 966! sa1~as aq~ 6u1~1sodap s~a1Bap ~aq~o pUB s~a~1~M~apun 6U1pn1~u1) s~a1t?ap u1t?~~a~ O~ P10S pUt? pa~aJJo aq Át?w sa~ON 966! sa1~as aq~ '~a~1~M~apUn aq~ Áq aW1~ O~ aW1~ WO~J pa6ut?q~ aq Áew sa~1~d 6u1~aJJo ~11qnd a4~ '6u1~aJJO ~11qnd 1t?1~1u1 a4~ 6U1M0110~ 'past?4~~nd a~t? Áut? J1 sa~oN 966! sa1~as a4~ 11B ast?4~~nd O~ pa~t?611qo s1 ~a~1~M~apUn aq~ 'sa~ON 966! sa1~as a4~ uo ~sa~a~u1 pan~~~t? sn1d (~uno~s1P anss1 1t?U161~0 pUt? ~uno~s1P s,~a~1~M~apun ssa1 sa~ON 966! sa1~as a4~ JO ~unowt? a~t?J aq~) $ JO a~1~d ast?q~~nd a~t?6a~66t? ut? ~B Á~1J aq~ WO~J 'Joa~a4 a6Bd ~aAO~ a4~ uo UM04s st? '~a~1~M~apUn a4~ pUt? Á~1J a4~ uaaM~aq ~~t?~~UO~ ase4~~nd t? O~ ~ut?ns~nd '~a~1~M~apUn a4~ Áq past?q~~nd 6u1aq a~B sa~oN 966! sa1~as a4~ ÐNI~IHM~~CINCl sa~ON 966! sa1~as a4~ 'uodn ~~aJJa as~aApB ut? aAe4 ~O O~ Á1ddB ~461W ~O P1nOM ~t?q~ pa~~Bua ~O pa~npo~~u1 aq ~ou 111M s1esodo~d aA1~B1s16al ~B4~ uaA16 aq ut?~ a~UB~nsst? ON 'anIBA ~a~~Bw ~1a4~ put? sa~ON 966'[ sa1~as JO d14B~auMo wO~J 6u1~lnsa~ sa~uanDasuo~ XB~ le~apaJ aq~ 4~oq uo ~;:)aJJa UB aAe4 Plno;:) q~1qM 6u1Puad a~t? slBsodo~d aA1~Bls16al law1~ o~ aW1~ wo~.!I 'sa~ON 966'[ sa1~as a4~ o~ ~t?11w1s SU01~B61Iqo a4~ JO an1BA ~a~~t?w a4~ pa~~aJJB aAt?4 Át?w sa~uanDasuo~ Xt?~ 1t?~apaJ JO u01~t?~a~1t? 4;:)ns 's1st?q aA1~;:)Bo~~a~ B uo sa~uanDasuo~ asa4~ pa~a~1t? ~B4~ SU01S1AO~d pau1t?~uo~ aAt?4 S1Bsodo~d asaq~ saSB;:) awos UI 'sa~ON 966! sa1~as a4~ o~ ~t?11w1s a~t? ~t?4~ SU01~t?61Iqo JO d14s~auMo aq~ wO~J 6u1~1nsa~ sa;:)uanDasuo~ xe~ 1e~apaJ u1t?~~a~ pa~a~lt? ~Bq~ Ipa~~Bua sase~ awos U1 pUB 'ssa~6uo~ u1 pa~npO~~U1 uaaq aAt?4 s1esodo~d aA1~Bls16a1 s~BaÁ ~ua;:)a~ 6u1~na ~t?aÁ ~a~t?1 B 11~un ~uawÁBd 4SB~ 6u1Puodsa~~0~ t? aq ~ou 111M a~aq~ 46noq~ uaAa 11t?n~~~t? JO ~t?aÁ a4~ u1 paA1a~a~ aq o~ pawaap aq Át?w sa~oN ~uno;:)s1a a4~ uo ~uno~s1P anss1 1BU161~0 pan~~~t? 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LI"IW 00 OOo\J;:::..........O\N~~OON~~~WOOWOOO~~NOOOO~ ~t'r:1 ~ ~ ~~ ~ ;:;. = (A () Õ' <:> ~N~~~~~~~~~~~~N~N~~Nw~~~WW ~* = (A N ...... {A 0 .... 00 - N 0 ,00 W ~N ~ ~ N - ~ 0 ~ W~~~N~N~OO~--~N~~-~~-~ ·N .'-0 W~W~~~N~~OOO~--~-~~WWO~N - ~ 'I .þ.ootvov>~O~~O.þ.WNNN'-ONV>-NOO~.þ.O~W e -- United states Code, the remedies specified by the Federal Bankruptcy Code and the Note Resolution may not be readily available or may be limited. The various legal opinions to be delivered concurrently with the delivery of the Series 1996 Notes (including Note Counsel's approving opinion) will be qualified, as to the enforceability of the various legal instruments, by limitations imposed by bankruptcy, reorganization, insolvency, or other similar laws affecting the rights of creditors or by such principles of equity as the court having jurisdiction may impose with respect to certain remedies which require or may require enforcement by a court of equity. LITIGATION There is no litigation or controversy of any nature now pending or threatened (i) to restrain or enjoin the issuance, sale, execution or delivery of the Series 1996 Notes or (ii) in any way questioning or affecting the validity of the Series 1996 Notes, the Note Resolution, any proceedings of the City taken with respect to the authorization, sale or issuance of the Series 1996 Notes or the pledge or application of any moneys provided for the payment of the Series 1996 Notes. The City is a party from time to time in various law suits involving the City generally, and believes that none of the actions currently pending will have a material effect upon the finances of the City STATEMENTS The General Purpose Financial Statements and other information of the City for the fiscal year ended September 30, 1994, are included in Appendix B to this Official Statement. Such excerpts from the City's Comprehensive Annual Financial Report, including the auditor's report thereon, have been included in this Official Statement as public documents and consent from the auditors was not requested. The auditors have not performed any services relating to, and are therefore not associated with, the issuance of the Series 1996 Notes. ADVISOR The City has retained Public Financial Management, Inc., Fort Myers, Florida, as financial advisor (the "Financial Advisor") to the City in connection with the preparation of the City's plan of financing and with respect to the authorization and issuance of the Series 1996 Notes. Although the Financial Advisor assisted in the preparation of this Official Statement, the Financial Advisor has not undertaken to make an independent verification or to assume responsibility for the accuracy, completeness or fairness of the information contained in this Official Statement. Public Financial Management Inc. is a financial advisory consulting organization and is not engaged in the business of underwriting, marketing or trading municipal securities or any other negotiable instruments. 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. Copies of all such documents referred to herein are on file with the City Clerk of the City at 1 Westgate Plaza, Clermont, Florida 34711. The information herein has been compiled from official and other sources and, while not guaranteed by the City, is believed to be correct. As far as any statements made in this Official statement and the appendices attached hereto involve matters of opinion or of estimates, whether or not expressly stated, they 19 PURPOSE FINANCIAL GENERAL FINANCIAL e _ M~OOOO~~ONMN~~OON~MMM~~o-.OOo-.O~~ON_MM~_~~O ~ ~~~ N~ --~-M~~O~~~MNO~~ON~ -~~~_~_~ ~ oo-~ o-.N ~O_N~~N~_N~~MMo-.N~_N N~~~M~M~ ~ 00 ~oo~ ~~ ¿ ~M~~Ñ ~¿~~~~ ~~ ÑM M~~~ ~ O ~ - NN ~ N ~ ~ ~ N - ~ N ~ ~ §~ MM~~~~~~~NNMN~~NN~N~~~~~-M~~~~~~~~~N_~ ~5 ~ ]Jj '" <1J ~P::: OO~OOOOOOONN~OONOM~OO~~-~O~~Oo-.NO~~~~~OO~~O ~ ~~~ ~~ ~oo~~~~~~~~~~~~~~g~~ ~~~~~~~~ ~ ~ ~~~ ~~ ~ ~M~~Ñ ~~~~~M Ñ~ MM M~~~ ~ ~ M - -N N N ~ ~ ~ ~, N _ ~ - ~ ~ §~ MM~~~~~~~NNMN~~NN~N~~~~~-M~~~~~~~~~N_ ~ ~g ~ cd <1J - ..... ¡:¡~ '" <1J ~P::: M~~OOo-.-O~OOOM_~_~Mo-.OONo-.MMO~~OM~__~o-.~~o~ OOON OO~ --~O-~~~~M~-~~~OOO~- O~MM~~~~ ~ ~M~ 0000 ~~--NMOON-N-MNOO~~~O- _~~~_~_~ ~ ~ M~~ ~M ~ ~~~~M ~~~~~Ñ ~~ MM M~~~ ~ 00 ~ N - -N - N ~ ~ ~ ~ N _ ~ ~ - ~ ~ Z ~ ~ ~~ MM~~~~~~~NNMN~~NN~N~~~~~_M~~~~~~~~~N_~ ~ Ou ~ '.;j ;::: cd <1J - ..... 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(1)~ (1)(1)(1)(1)(1)(1) (1).+J .... .,g ~ ~ ~ ~ ~ ~ ~ æ .~ .> .... u g g g g g .~ § en ra ~ "'cdUUUUU<1JU '6 t:1-.<1J~¡¡¡cdcdcdcdcd t:o '" <1J;;:1 > ~ "',- ,- ,- ,-,- >'- ~ <1J <1J U <1J ~ ~ ~ ~ ~ ~ <1J U <1J ~'_ Q ~ "õ &i t: t: t: ¡> t: '¡:: t: ¡a,~ ib (/) (/)'> 6 ;:: 1! ~ 1! ~ 1! (/);;. :=: ¡a ~ í5. _'" ' ~ p,. <1J <1J <1J U <1J <1J <1J U ¡::¡ ,_ '" ..... I-. p,. ~ ~ ~ ~ ~ ~ <1J"'" ¡a p,. .¡:: <1J p,. "'0 '" S<1J6{/){/){/){/){/){/){/)'> <1Jcd~~'a~'-·-'-'_·- ><1J<1Jp,. <1J 6 ~'" <1J <I> p:¡ 0 -¡;¡ -¡;¡ -¡;¡ -¡;¡ -¡;¡ -¡;¡ -¡;¡ b ~ ~ ö ~ ..... 0" -¡;¡ ..¡g ..¡g ..¡g ..¡g ..¡g oo',p ::õ ~ ~ t:: .9< (/) ~ "'[ - -'" U ~ ~ ~ ~ ~ ~ ~ "' (/) P-. <1J _'" ,'" (/) <1J ~ ,- ,£¡ ,£¡ ,£¡ ,£¡ ,£¡ '" e '" C) J ~n""'" ~ ~ ç,;:: ~ '" "'0 0 0 0 0 0 0 0 ~ .-J ~ "'0 "'0 <¡j, U _'" _'" ,'" -'" _'" ,;;¡ <-' ... '" - - - '" 0" 0 ~ <1J >. '" ~,_ ,_ ,_ ,_ ,_ ,_,_ <1J Õ "'0 0 "' U ~ 0. ~ "'0 "'0 "'0 "'0 "'0 '" '" ~ ,;;¡ ~ 0 _'" ¡::: ~ <1J ~ p,. ~ x rJ'j .(1) (1) ~ ~ ~ ~ ~ ~ ~ ~ ~ _...c:: ÕÍ)' '-" ~ ~ .= .= .~ .= .= '€ '8 = .~ ',= \IQ c::::: '-" .§ e '0 :=t ~ ~~~~~~~~~~~tJ~~.s~<1J§S6cdcdcdcdcdÜ'~OS!cd~"'~000~p,.6~ <I> -¡;¡ 0 0 8 8 8 8 8 8 "2 § e Qj ~ ~ 0; .9 ~ § ~ ~ ~ ~ ~ -ð -a g ~ g¡ .g '= ,¡:¡ :a .D .g 0 C5 ~{/)~~P-.P-.P-.P-.P-.P-.--<U~~P-.~~{/)P:::UP:::P:::P:::P:::P:::--<--<~P-. ö~~::::Suj{/)U~ are set forth as such and not as representatives of fact and no representation is made that any of the estimates will be realized. DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS Florida law requires the City to make a full and fair disclosure of any bonds or other debt obligations which it has issued or guaranteed and which are or have been in default as to principal or interest at any time after December 31, 1975 (including bonds or other debt obligations for which it has served as a conduit issuer). The City is not and has not been in default as to principal and interest on bonds or other debt obligations which it has issued as the principal obligor. AUTHORIZATION OF AND CERTIFICATION CONCERNING OFFICIAL STATEMENT The delivery of this Official statement has been authorized by the City Commission. Concurrently with the delivery of the Series 1996 Notes, the undersigned will furnish their certificate to the effect that, to the best of their knowledge, this Official Statement did not as of its date, and does not as of the date of delivery of the Series 1996 Notes, contain any untrue statement of a material fact or omit to state a material fact which should be included therein for the purpose for which this Official Statement is to be used, or which is necessary in order to make the statements contained herein, in the light of the circumstances in which they were made, not misleading. The City has reviewed the information herein and has approved this Official Statement. The City has authorized and approved the distribution of this Official Statement, and has declared it "nearly final" within the contemplation of Rule 15c2-12 promulgated by the Securities and Exchange Commission. CITY OF CLERMONT, FLORIDA By Mayor By City Manager 20 00 ~ 00 Z ~ ~ ~ ~ ~ Z - E-< ~ ~~ ~O~ ~~~ ,...;¡~;;... PE-<oo ~U~ ~~~ ="""E-< UO< oog:~ ~ o E-< Z ~ ~ ~ o ,...;¡ ~ > ~ ~ ~ t"--\Ooor---o M M O\NOOOM \C Q\ -" ("t'¡" ('<")... 0\.. 00... 0'\" 1'-", ""i. °-.::to\V)OOV)N _ \C O_"d""I:f"N_\O N I"C OEl") '-' NN f"'¡ ..... N "" "" ;;;:; '" '" g'-ri µ,¡p:: ~ V1-.::tOOt-\O C\ r- r-ooooo\O f"'¡ QC _ 0\", 0" t'"}... ("1').. 00", 00... =... "1 ~'NO_\Ov)M Q\ \C ...." - "d" -.::t N _ V) = ...... 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SðÞ~~] ~ ~ ~ · - FLORIDA APPENDIX A GENERAL INFORMATION CONCERNING LAKE COUNTY, Area The City of Clermont occupies about 8 square miles and is located in south Lake County, Florida (the "County"), about 22 miles west of Orlando on Highway 50 in the central highlands region of Florida and is about equidistant from the Atlantic Ocean and the Gulf Coast. The average elevation is 80 feet above sea level with the maximum elevation of up to 307 feet. The area around the City has many miles of lakes and rivers. Lake Griffin provides direct access to the Atlantic Ocean Via the st. Johns River. low area 51.2 Climate The mean daily high temperature is 82 degrees and the mean temperature is 63 degrees. Year round temperatures in the average in the 70' s. Average annual yearly rainfall is inches. The average relative humidity is 60%. Recreation and Tourism There are many golf courses in and within close proximity to the County. In addition, with many lakes nearby, fishing, boating and water sports are popular recreational activities. In 1993 there were 15,860 pleasure boats and 263 commercial boats registered in Lake County. The City is the largest financial supporter of a private library that serves City residents and residents of the surrounding area. Lake county The County is a noncharter county established in 1887 and located in Central Florida between Orlando and Ocala The County benefits from a spillover effect being a part of the Orlando Metropolitan statistical Area (MSA) which is just southeast of the County. The County encompasses 954 square miles of land and more than 1,300 recorded lakes, rivers and canals, covering 202 square miles. Interstate 75 connects with state Road 40 to 50, U.S. 441 and 27, and the Florida State Turnpike passes through the County. within the County's borders are fourteen municipalities comprising approximately 46% of the population. Population The County's population has increased form 104,870 in 1980 to 171,168 in 1994, an increase of 63.2% according to recent statistics from the University of Florida Bureau of Economic and Business Research. This compares to a 32.7% increase for Florida and a 9.8% increase for the nation. The e _ -. --. - ,,-.... 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"C -'" ,,'" fJ I'J fJ " 0. - ~ ~ e ,- ,- ,- ,- ,-,", ,- j o;j 0 ~ C 0 ~,__ ~~~ ÖU S ~ 00 ~~~~~>bSõoECQCQCQa:la:lCQ a rI'J~Oo~~.....s ...0 ¡¡. ¡¡. ë ë oS 0 ¡.¡ < .; ~ e e e e E ü ~ ..!! ~ 0 ft ft ft ft ft ft:9:9 ,~,g ï= Jj :a.g ..S 0 ~~__o ~ Z ¡.¡en~Q.Q.Q.Q.~~Q.W~uP::P::P::P::P::P::~~ v~~~UenenU~ 2 The Board of Commissioners of Lake County, the School Board of Lake County and the City Council are each limited by the Constitution of Fldorida to an ad valorem tax levy of 10.0 mills per $1.000 of assessed value for operating expenditures Under the Florida Homestead Exemption law, no municipal or county taxes are levied against the first $25,000 of valuation of a home occupied by its owners except for special assessments. It is a state law that all tax appraisals must be at 100% of value. Florida has no individual state income tax although a corporate income tax is imposed. Inheritance tax is confined to the amount allowed as a credit to the State from the tax levied by the united States government. The 6% State sales tax applies to all items except groceries and medicines Local and state Taxes Note Lake county Florida Sources * Est Lake County Florida Source United States mated U.S. Department The medium projection is believed to provide an accurate populations and is the figure used in this table Florida Statistical 179.323.000 4.951 57.383 13 Estimate 1993 960 population Estimates and Projections Lake County and Florida (In Thousands rounded to hundreds 167.2 608.6 of Conmerce 203.236.000 6.791.418 176.0 14,109.7 69.305 1995 Bureau of the Census and 152,104 2.937.926 Abstract 227.757.000 107.870 9.746.961 199.8 15,449.0 2000 1994 250.411 222.8 16,742.1 pro'iections 2005 2010 or 000 da Stat 157,061 3,195.952 252 245.5 18,008.4 st 60.000 ca Abstracts 62.579 268.4 19,267.8 256.447.000 13.424.416 2015 forecast of Un¡ vers 20 ty of F 259.476.000* 2020 290.0 520.8 67,167 13.608.627 future or da g~~ooooo~o~~~~~~~~~~~~~g~~g~~~~Ñ~~~~~O~~~ ~~~~ o~~ _ O_OO~NNN_N~OO~~~~~~~~N~~~M-~N M~_ ~~M~ 8 ~Ñ~ ~ ~ ~¿~~Ñ ¿ ~¿~~= ~ NM~ M~~~ ~~; ~~~~ ~ V; ~ ~ ;;- ~ MM~~~~~~~~NNMN~~NN~N~~~~~~-M~~~~~~~~N- -~~ ò~ WP:: _o~oooOO~OOO~~M~~~N~O~M-N~-ON~~M~~~~~~oo-- ~~-~ NO~ ~ ~~M~ON_N~OO~~M~MON~~OO~~M~~OO N~~ ~NMM ~N~ ~ ~_~~~~N_NNOOM~~N~M~OO-OON~NOON- ~voo ~NMN & ~ÑN ~ M ~¿~~N ~ ~~~~~ Ñ NM~ M~~~ ~~M MMÔ~ ~ _ N ~ ~-- ~ -- OON- ~O~N _ ~ V'\ __ M _ if') ~ if"} ~ if') MMV'\V'\V'\~~~~~NNMN~~NN~N~~~~~~-M~~~~~~~~N- -~~ rF.J ~ g"ri rF.J ¡.¡.¡ ~ Z r,.;¡ ~ ~~gooooo~o~~~~~~~~~~~~~M~~g=~8~~~~~~~o~~~ ~~~~ ~ ~o~ ~ ~_~~N~__N~~NMM~_MN~_~N~_~~_ _N~ ~~M~ ~ ~ ~N~ N M ~~~MN ~ ~~~~~ Ô NM~ ~~~~ ~~~ ~~oo~ ~ ~ _ N ~ ~-- ~ -- ~N~ ~~~- rÞO\ ~ - ~ ~ - ('I") "'-' -Vi ~~ ~ ~ Z .... ~ ('I"}M~~~~~~~~NNMN~~NN~N~~~~~~-('I"}~~~~~~~~N- -~~ ~ g ~ ~:E ¡'¡'¡P:: ~Or,.;¡ ~~~ ~~~ooooo~o~~~~~~~~~~~~~~~~g~~~~~~~~~bg~~~ ~~~~ ~~~ _ ~~~ ~ ~_~~~~~_N~~~~~~~('I"}~~~~~~q~~~q~~~ ~~~~ ~~~ ~ N_O 0 M _~~~N ~ ~~~~o ~ NM- M_~_M~N~ N~~~ ~~oo ~ ~ - N ~ ~-- ~ -- ~N~ ~~~g r,.;¡U~ - '" '" '" '" '" =~r,.;¡ UO~ CO ('I"}M~~~~~~~~NNMN~~NN~N~~~~~~-M~~~~~~~~N- -~~ rF.J~....... ° Q ~> ,~ Ii ~" '; Ii r~. 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M U F ::Ë ~ ~ ,~ ,~ ,~ ,~ ,~ ,~ ,~ ,~ ~ ¡¡ - õ ~ ,~ " e c ¡¡ c c ¡¡ ¡¡ "Q ~ - õ Q ° ¡.¡.¡ ~ ~ ~ õ ¡.¡ ~ [ ~ ~ t ~ ~ ~ ~ ~ 8'~ ]> VJ ... ~ 8. 1,; i1 c i1 i1 c c VJ ~ ~ ,~ ¡¡ lJ a<J U oc < - , ð <.... ¡¡ e VJ en VJ VJ VJ VJ VJ VJ ._~ C¡ "::¡".~ ,~ oS ,~ ,~ ,~ ,- ,~ ,~ ">" p. ~ e c 5 ~,>, t'""""" '"' ~ ..,~ =' ~ = = (0 a:s to _::J U 0 u ...... In U ~ ~ c:Q Uo '¡¡j '¡¡j '¡¡j '¡¡j '¡¡j '¡¡j '¡¡j '¡¡j .~ æ µ., S .ª U .:\ '¡¡j :::E :::E :::E :::E :::E :::E oc',% ~ VJ :;¡ ,~ U g ,~ ~ e to::,~ ~ ~ ¡;; a<J C C C C C C C C "v, g a<J "Q v, _ ..... 'µ C ~ ., oc:-::: c:Q 0" c':;;> 1; ¡¡ " ;> 0 ~ ., E",~,~ ,~ ,~ ,8 ,8 ,8 ,8 ~ '¡) o(j 0 " Q a<J ~ ,;, õ a<J a<J a<J o(j a<J a<J :5 '~2 g ,5 0 .oJ ::1 ¡.¡.¡ g ,8 ,p.c: õ 'ë OC 8" ~ õ - U ~.u u t5 ~ ~ ~ ~ ~ :¡ ~ ..... a:s Ü .c: bO'E ~ ~ - e .!=: .: .!=: .:: .: .!:: 1:: _ = !- ~ ""0 E ~.C: ~ Cf) h 5 IfIo CI:I S ~ 00 5 -t: ~ ~ ~ ~ ~ ~ ~ ~ :.ö .::, :> g. S 0 ~ c .s e cc œ ~ ~ ~ ~ ~'s 8 y¿ ~ g .2 t: ~ Z I'c:] = J5 's. a š ~ '¡¡j ~ e 2 2 2 2 2 2 2 ::> § e õ ~ ..!! ~ £ ¡¡ 0 g. g. g. g. g. ft:;! :;! J:: ,~,5 C :.;; ..c (5 .g)( ~ 0 0 ...0)(" e ° :::VJ~p.~~p.~~~~<UEo<~~¡.¡.¡~VJ~up::p::p::~~~..........~ v~::>...UUVJ~~U~ ~U~Eo< 1960 1970 Lake County, 1980 population Florida, United states 1960-1993 1990 1991 1992 1993 .. Rates - Direct and Overlapping Governments (Per $1,000 of Assessed Value) Last Ten Fiscal Years School District Millage Rate year is equivalent to preceding tax year. For example, year 1984-1985 corresponds to tax assessment year 1984. 66 415 608 477 742 451 749 880 005 938 · · · · · · · 5 6 6 7 7 8 8 8 9 8 Lake County Millage Rate(2) 272 492 400 400 400 938 938 938 864 135 · · · · · · 3 3 3 3 3 4 4 4 4 5 . City of Clermont Millage Rate 2 2 2 2 2 2 2 2 2 2 626 429 429 429 429 429 429 729 729 979 · · · · Property Tax Fiscal Year(l) 1984-1985 1985-1986 1986-1987 1987-1988 1988-1989 1989-1990 1990-1991 1991-1992 1992-1993 1993-1994 Fiscal fiscal (1 is millage Millage Rate that is applied county-wide; additional imposed by the County in various parts of the County. 2 Lake County, Florida Comprehensive Annual Financial Report, Fiscal Year ended September 30, 1994; City of Clermont, Florida Comprehensive Annual Report, Fiscal Year ended September 30, 1994. Source left blank.] [Remainder of page intentionally e - SCHEDULE 2 CITY OF CLERMQNT McrSCELLANEOUSORDlNANCE NO. 289-M Page 3 SECTION 5. This ordinance shall be published as provided by law and it shall become law and take effect December 1» 1995. First Reading this 24th day of October, 1995. Second Reading this 14th day of November, 1995. PASSED AND ORDAINED BY THE CI1Y COUNCIL OF THE CITY OF CLERMONT, LAKE COUNTY FLORIDA TIDS J::J.MDAY OF NOVEMBER, 1995. ø ~~ Robert A. Mayor Attest: 3 Sources 4 Lake County Comprehensive Annual Financial Report, Fiscal Year Ended September 30, 1994; City of Clermont, Florida Comprehensive Annual Financial Report, Fiscal Year Ended September 30, 1994. Should any section or part of this section be declared invalid by any court of competent jurisdiction, such adjudications shall not apply or affect any other provision of this ordinance, except to the extent that the entire section or part of the section may be inseparable in meaning and effect from the section to which such holding shan apply Fiscal Year 1984-1985 1985-1986 1986-1987 1987-1988 1988-1989 1989-1990 1990-1991 1991-1992 1992-1993 1993-1994 Fiscal Year 1984-1985 1985-1986 1986-1987 1987-1988 1988-1989 1989-1990 1990-1991 1991-1992 1992-1993 1993-1994 Totals All Property Assessed Valuations Lake County $2,112,409,000 2,030,547,125 2,283,603,198 2,511,175,572 2,941,734,073 3,333,913,225 3,619,203,024 4,116,491,815 4,270,928,151 4,517,942,097 Lake County $ 300,670,643 313,880,199 341,580,135 376,135,582 429,972,077 488,517,532 538,458,517 635,628,359 649,780,932 692,045,241 Clermont $ 87,665,327 99,418,831 109,927,928 116,298,681 122,653,430 141,793,127 148,215,355 166,770,968 171,790,483 171,032,783 C $12 13 15 15 17 20 21 21 22 22 1 , , , , , , , , , , ermont 273,146 918,636 298,755 884,688 380,457 275,140 835,659 934,140 967,794 503,836 SECTION 4. SECTION 3. The City hereby establishes an automatic annual increase to all rates, fees, and charges set forth in this ordinance based upon the applicable Florida Public Service Commission Annual Deflator Index percentage. The Annual Deflator Index percentage amount is currently 1.95%. This annual index adjustment shall first occur automatically on October 1, 1996, and shall continue to occur on October 1 of each year thereafter. All ordinances or parts repealed. of this ordinance in conflict herewith are hereby SECTION 2. Single-Family Multiple-Family Commercial Customer Type ANNUAL INDEX ADJUSTMENTS 16,000 gallons 13,000 gallons per dwelling unit No maximum Gallons Fiscal Year 1984-1985 1985-1986 1986-1987 1987-1988 1988-1989 1989-1990 1990-1991 1991-1992 1992-1993 1993-1994 Personal property Total Lake County $1,811,738,357 1,716,666,926 1,942,023,063 2,135,039,990 2,511,761,996 2,845,395,693 3,080,744,507 3,480,863,456 3,621,147,219 3,825,896,856 Taxable Valuations In addition to the base charges listed above, a variable rate of $1.21 per 1,000 gallons of water consumed monthly shall be charged. The maximum amount of gallons subject to the variable charge per month shan be as follows $ Clermont 75,392,181 85,500,195 94,629,173 100,413,993 105,272,973 121,517,987 126,379,696 144,836,828 148,822,689 148,528,947 SECTION 1.1 VARIABLE RATE FOR SEWER SERVICE: MISCELLANEOUS ORDINANCE NO. 289·~1: Page 2 Non-Exempt Real Property Valuations Taxable and Assessed Lake County and City of Clermont Tax Roll Years 1984-1994 property Total Taxable valuations C/TYOF CLERMONT SCHEDULE 2 . . e e SCHEDULE 2 Within a sixty mile radius Lake County has six major institutions of higher learning: University of Central Florida, University of Florida, Rollins College, st. Leo College and stetson University. Lake Sumter Community College, located east of Leesburg, offers two-year associate degrees in the arts, sciences, business and technical sUbjects. The County School System operates thirty-six schools: eighteen elementary, eight middle, six high, one exceptional education, one special, one gifted and one vocational/technical school. For the 1993-1994 school year a total of 22,669 students were enrolled. Lake county Schools OITY OF CLERMONT MITSCELLANEOUSORDINANCE NO. 289-M Lake County has five hospitals with a total short-term patient capacity of more than 680 beds, one Hospice, 12 licensed home health care agencies, four resident treatment facilities with approximately 76 beds and 11 nursing homes with an approximate total of 1,316 beds. Medical Facilities AN ORDINANCE OF THE CODE OF ORDINANCES OF TIlE CITY OF'CLERMONT, LAKE COUNTY, FLORIDA, ESTABLISIUNG A RATE SCHEDULE FOR SEWER SERVICE REPEALING ALL ORDINANCES IN CONFLICT HEREWITH, PROVIDING FOR SEVERABILITY, PROVIDING FOR AN EFFECTIVE DA'IE, AND PROVIDING FOR PUBLICATION. TIlE CITY COUNCIL OF THE CITY OF CLERM:ON'f, LAKE COUNTY, FLORIDA, HEREBY ORDAINS THAT: 1. BASE CHARGE FOR SEWER SERVICE: Unemployment Rates Lake County, Florida and the United states 1990-1995 National 8 7 4 8 1 6 · · · · · · 5 6 7 6 6 5 State 5.9 7.3 8.2 7.0 6.6 5.3 County o 3 7 9 6 o · · · · 8 8 8 6 6 5 Year Fiscal 1990 1991 1992 1993 1994 1995 Employment SECTION The monthly base charge for single-family and commercial customers shall as follows: be MONTHLY BASE CHARGE ERC FACTOR METER SIZE 1 ( (Preliminary Florida Statistical Abstract, 1989, 1990, 1991, 1992, 1993, 1994; Florida Department of Labor and Employment Security, Bureau of Labor Market Information, Local Area Unemployment Statistics Program, in cooperation with the U.S. Department of Labor, Bureau of Labor Statistics. As of April 1995 Sources: (1 $9.30 23.25 46.50 74.40 148.80 232.50 465.00 744.00 1 2.5 5 8 16 25 50 80 5/8" X 3/4" P 1.5· 2" 3" 4" 6· 811 Economy Although recent freezes have severely damaged the local citrus industry, agriculture is still important to the economy. 5 The base charge for multiple family dwellings shall be $7.44 per dwelling unit per month. Multiple family dwellings include centrally metered apartments and mobile home parks. but does not include hotels. motels or recreational vehicle parks. 6 state of Florida, Department of Labor and Employment Security, Bureau of Labor Market Information, "Employment, Wages and Contribution Report: (ES- 202), unpublished data. Totals may not match due to rounding Source: 1 1 Employment by Major Industry Group state of Florida and Lake county 1992-1993 The services sector of the County's economy employer in the County. In 1993 over half of the employment (59.3%) was in two industry divisions and wholesale and retail trade (24.5%). 1 Total Industries Services Retail Trade Manufacturing Agriculture, forestry and fisheries Construction Public Administration Finance, Insurance and Real Estate Transportation, Commerce and Public Utilities Wholesale Trade Mining Other 377,901 353,220 147,415 272,370 1992 979 129 480 074 419 732 State of Data withheld to avoid disclosure of information about 5, 317, 290, 7, 8, 364, 364 849 143 227 029 329 293 6 10 5,582 , , , , 097 299 566 865 844 4 3.7 .8 (8.8 32.1 2 1 382,042 359,467 154,101 291, 695 1993 107 164 483 Florida 1 2, 1, ( ( 44, 445 557 428 individual 380 232 1 ) 1) 889 1 4.5 7.1 % Chanqe 2 1 46, 472 165 268 34 905 firms 3.9 5.4 MIA MIA 4.5 1.1 6.5 3.1 .6 8 3,011 2,703 1992 15 10 3 is the largest total non-farm services (34.8%) 3,071 2,825 262 242 872 3,022 2,726 1993 16 10 4 Lake County 3,230 3,071 315 331 265 9 5.2 8.7 6.9 .9 10.1 % Chanqe 4 SCHEDULE 1 OITYOF OLERMONT MISCELLANEOUS ORDINANCE NO. 277·M Page 3 First Reading this 14th day of March, 1995. Second Reading this 11th day of April, 1995. PASSED AND ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLERMONT, LAKE COUNTY FLORIDA THIS./I- DAY OF APRIL, 1995. ø a/Z~ Robert A. Pool, Mayor Attest: ~E.e .- Manufacturing accounts for a small share of the County's economy (10.1%). Listed below are the ten largest industrial employers in Lake County as of September 30, 1994: Ten Largest Industrial Employers Lake County, Florida No. of Employees Florida Crushed Stone Company 915 Golden Gem Growers (1) 700 Coca Cola Foods 455 silver Springs Citrus co-op 200 Mount Dora Growers Cooperative 170 Dura-Stress, Inc. 165 white Aluminum Products 155 Florida Medical Industries 150 Florida Made Door Company 100 Florida Select Citrus, Inc. 100 (1) Includes 350 seasonal employees. Source: Lake county Comprehensive Annual Financial Report, Fiscal Year Ended September 30, 1994; Mid-Florida Economic Development Commission. Personal Income The following financial indeces are presented to compare personal income in Lake County with the State of Florida and the united States. Per capita Amounts on Place-of-Residence Basis united states, Florida and Lake County 1988-1992 (Rounded to dollars) 1988 1989 1990 1991 1992 united states $16,610 $17,690 18,667 $19,163 $20,105 Florida 16,640 18,024 18,906 19,293 19,797 Lake County 14,635 15,975 16,433 16,576 17,074 Source Florida statistical Abstract, 1994 [statistics are not yet available for 1993 and 1994.] 7 $21.30 $31.97 $21.30 .47 $ 8.54 $ 7.11 78 % of water bill e ~SCELLANEOUSORDINANCE NO. 277-M Page 2 General Business, Offices, Churches & Clubs General Business with Public Restrooms Schools and Day Care Centers Additional for each pupil over thirty (30) Hotels, Motels, & Boarding Houses - per unit Hospitals and Nursing Homes - per unit Car Washes, Laundries, & Gas Stations with Car Washes 1 SCHEDULE CITY OF CLERMONT e 2. 3. 4. 5. 6. 7. VARIABLE RATE FOR SEWER SERVICE: In addition to the basic rate listed above, a variable rate of .24 based on each 1,000 gallons of water used after the first 3,000 gallons will be applied with a maximum charge of $3.24.' The maximum variable charge on multi-family dwellings or multiple commercial establishments will be considered $3.24 per unit or commercial establishment. Should any section or part of this section be declared invalid by any court of competent jurisdiction, such adjudications shall not- apply or affect any other provision of this ordinance, except to the extent that the entire section or part of the section may be inseparable in meaning and effect from the section to which such holding shall apply. in conflict herewith are hereby ordinance of this All ordinances or parts repealed. SECTION 3.1 SECTION S. SECTION 4. law it shall become SECTION 6. This ordinance shall be published as provided by law and and take effect April 11, 1995. Personal Income by Industry Classification Lake County 1991-1992 (in thousands) Industrv 1991 1992 % Chanqe Manufacturing $117,778 $125,547 6.6% Construction 85,492 106,305 24.3 Transportation, Communications and utilities 67,350 73,802 9.6 Retail Trade 155,984 166,275 6.6 Wholesale Trade 36,515 38,189 4.6 Finance, Insurance and Real Estate 66,878 69,712 4.2 Services 285,034 328,194 15.1 Mining 7,417 7,429 0.2 Other private industry(1) 25,883 28,930 11. 8 Total $848,331 $944,383 11. 3% (1) Includes agricultural services, forestry, fisheries and other Source: Florida statistical Abstract, 1994. construction Building permit activity in Lake County and the Clermont is shown in the table below. Building Permit Values Year Clermont(1} Lake County 1985 $6,336,300 $ 81,298,214 1986 2,756,760 88,536,091 1987 6,620,585 113,892,744 1988 2,708,200 125,657,809 1989 3,423,000 189,242,778 1990 3,403,250 151,074,177 1991 1,694,600 134,128,221 1992 4,079,500 126,794,691 1993 8,603,225 124,652,170 1994 2,493,200 168,216,578 (1) Permits/Inspections included in County Total. Source: Lake County, Florida Comprehensive Annual Financial Report, Year Ending September 30, 1994 8 SCHEDULE 1 CITY OF CLERMONT MISCELLANEOUS ORDINANCE NO. 277-M AN ORDINANCE OF THE CODE OF ORDINANCES OF THE CITY OF CLERMONT, LAKE COUNTY, FLORIDA, ESTABLISmNG A RATE SCHEDULE FOR WATER SERVICE, SEWER SERVICE AND SANITATION SERVICE, REPEALING ALL ORDINANCES IN CONFLICT HEREWITH, PROVIDING FOR SEVERABILITY, PROVIDING FOR AN EFFECTIVE DATE, AND PROVIDING FOR PUBLICATION. THE CITY COUNCIL OF THE CITY OF CLERMONT, LAKE COUNTY, FLORIDA, HEREBY ORDAINS THAT: SECTION 1. WATER SYSTEM WEST* Basic Rate Schedule for Water Service: *Water System West shall be all areas served by systems utilizing the 4th Street Well, Seminole Well, and Grand Highway Well. A. Minimum Rate: $4.85 B. Additional Use: $1.10 per 1,000 gallons after the first 3,000 gallons SECTION 2. WATER SYSTEM EAST* Basic Rate Schedule for Water Service *Water System· East shall be all areas served by systems utilizing Hancock Well and East Wells #1 and 112. A. Minimum Rate: $9.11 B. Additional Use: $1.13 per 1,000 gallons SECTION 3. BASIC RATE SCHEDULE FOR SEWER SERVICE: A. Single Family Dwellings $16.00 B. Multiple Family Dwellings, including centrally metered apartments and l1}obile homes $15.40 C. Commercial Establishments 1. Food Establishments seating less than twenty persons 35.48 Additional for each seat over twenty (20) 1.07 . City of Clermont, Florida Largest Employers . e e Mr. Wayne Saunders, City Manager February 26 996 Page 26 Number of Employees 223 184 175 130 Industry Grocery Education Health Care Retirement and Nursing Construction Supplies steel Fabrication and Erection Municipality Restaurant Automobile Dealer Ceramic Mold Manufacturer Employer publix Lake County School System South Lake Memorial Hospital Lake Highlands Retirement and Nursing Home CBS Industries Exceletech, Inc CONCLUSIONS Based upon the principal considerations and assumptions and the results of our studies and analyses, as summarized in this Report, which should be read in its entirety in conjunction with the following, we are of the opinion that: 96 90 to fund the be adequate the various sources as estimated will the existing line of credit Proceeds provided from 76 58 41 25 City of Clermont Quincy's Steak House South Lake Ford Bell Ceramics customers are sufficient to generate the revenues requirements utilizing existing System reserves improvements and retire The existing and projected System required to meet the projected fiscal as noted herein 2 reasonable represent the System The projected growth in customers and usage of projections for the purposes of this report. 3 Finance Department city of Clermont, Florida Demographic statistics Last Ten Fiscal Years City of Clermont Source The existing facilities of the System, with planned improvements can reasonably be expected to meet the projected operational requirements of the System through the fiscal year ending September 30,2000. 4 (2) School Enrollment 635 647 670 788 897 975 169 482 629 787 , , , , , , , , , , 1 1 1 1 1 1 2 1 1 1 (1) Population 114 379 623 642 910 910 930 013 174 233 , , , , , , , , , , 6 6 6 6 6 6 6 7 7 7 Fiscal Year 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 The combined System projected revenues for fiscal years ending September 30, 1996 through 2000 under the proposed rates, including the application of annual price index and required rate adjustments as shown herein, will be sufficient to: i) pay all projected operating and maintenance expenses; ii) pay the projected debt service on the existing bonds coming due in such years; iii) meet the rate covenant of the existing bonds; and iv) provide a minimum of 1.0 times coverage on the annual BAN interest after paying debt service without the inclusion of impact fees 5 to and comparable wastewater rates are reasonable The water rates and proposed those of neighboring utilities. fees 6 7 reasonable and comparable The impact utilities Data Sources the fees charged by neighboring matter and extend our appreciation to We wish to thank you for the opportunity to be of service in this to your staff for their assistance are College of Business Administration, University of Florida Bureau of Economic and Business Research (1 Very truly yours, Figures represent Grades K-12 in Public Schools Source Department of Education 2 Hartman & Associates, Inc. 9 Marco H. Rocca, C.M.C Finance Manager city of Clermont, Florida Water and Sewer customer Data Last Five Fiscal Years ANNUAL NUMBER OF CUSTOMERS (1) WATER FISCAL WATER SEWER USAGE YEAR RESIDENTIAL COMMERCIAL RESIDENTIAL COMMERCIAL (GAL) 1990-91 2,184 344 2,125 299 425,851,000 1991-92 2,195 346 2,127 298 429,536,000 1992-93 2,307 366 2,218 313 465,789,000 1993-94 2,345 374 2,252 319 491,327,000 1994-95 3,103 398 2,447 356 486,311,000 10 jential rates in effect during September , u reflect rates charged for service inside .ity. This comparison is intended to show comparison purposes only and is not intended to be a rates and charges offered by each listed utility. comparable charges complete listing of al Note Unless otherwise noted, amounts shown 1995 and are exclusive of taxes or the city. A rates are as reported by the for similar service for reflect standard franchise fees, if any, an" respective uti I Other Florida Utilities' Apopka Eustis Mt. Dora Orlando Orange County Umatilla Leesburg Average Other Florida Utilities Winter Garden Ocoee Tavares $26.08 $21.80 27.21 22.80 29.60 23,67 23.16 25.65 31.87 28.00 27.00 $35.04 $35.80 35.13 31.00 40.60 33.81 34.80 30.08 49.35 29.80 30.00 $37 $39.30 37,11 32.25 43,35 36.35 37.72 30.94 53.72 30.40 30.75 9 84 $46.30 41.07 38.05 48.85 41.42 43.54 32.86 62.46 31.60 32,25 $41 East Combined West $17.78 $25.43 $27.02 $34.79 $29.33 $37.13 $33.95 $41.8 City of Clermont: Mr. Wayne Saunders, City Manager February 26, 1996 Page 25 Service for a 5/8 COMP ARISON OF TYPICAL MONTHLY RESIDENTIAL BILLS WATER AND WASTEWATER SYSTEMS 10 3,000 Gallons TABLE 7,000 Gallons Residential 8,000 Gallons " Meter 10,000 Gallons . . e e City Manager Mr. Wayne Saunders, February 26. 1996 Page 24 TABLE 9 COMP ARISON OF TYPICAL MONTHLY RESIDENTIAL BILLS W ASTEW A TER SYSTEM 10,000 Gallons Meter 8,000 Gallons Residential Service for a 5/8 7,000 Gallons 3,000 Gallons City of Clermont: $21.40 APPENDIX B CITY OF CLERMONT, FLORIDA GENERAL PURPOSE FINANCIAL STATEMENTS AND OTHER INFORMATION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1994; AUDITED WATER AND SEWER FUND FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 1995 $33.80 28.51 21.11 28.70 29.71 33.72 18.45 45.95 16.00 22.00 $18.98 $28,30 25.57 17.81 26.50 26.45 29.30 18.45 39.59 16.00 22.00 $17.77 $25.55 o 24 17,8 25.40 24.82 27.09 18.41 36.41 16.00 22.00 $12.93 4.55 8,22 4.61 21.00 18.31 18.25 17.29 23.69 16.00 22.00 $ Wastewater Other Florida Utilities Winter Garden Ocoee Tavares Eustis Mt. Dora Orlando Leesburg Orange County Umatilla $27.80 $25.00 $23.76 $18,39 Average Apopka Other Florida Utilities' Unless otherwise noted, amounts shown reflect standard residential rates in effect during September 1995 and are exclusive of taxes or franchise fees, if any, and reflect rates charged for service i lsil e the city. All rates are as reported by the respective utility, This comparison is intended to comparable charges for similar service for comparison purposes only and is not intended to complete listing of all rates and charges offered by each listed utility. r :I show Note Unless otherwise noted, amounts shown reflect standard residential rates in effect during Septer f 1995 and are exclusive of taxes or franchise fees, if any, and reflect rates charged for service i . the city. All rates are as reported by the respective utility. This comparison is intended to :hc N comparable charges for similar service for comparison purposes only and is not intended to be a complete listing of all rates and charges offered by each listed utility. nside 5 " Note [This page intentIOnally left blank] Other Florida Utilities' Orange County Umatilla Apopka Ocoee Tavares Eustis Mt. Dora Orlando Other Florida Utilities Winter Garden Leesburg Average $7.68 $7.25 8.99 8.19 8.60 5.36 4.91 8.36 8.18 12.00 5.00 $11 $10.25 11.03 13,19 15.20 8.99 7.71 11.67 12.94 13.80 8.00 28 $12 $11.00 11.54 14.44 16,85 9.89 8.42 12.49 14.13 14.40 8.75 19 $14.05 $12.50 12.56 16.94 20.15 11.71 9.82 14.41 16.51 15.60 10.25 - Water East - Water $ 4.85 $12.50 $ 9.25 $17.02 $10.35 $18.15 $12.55 $20.41 West City of Clermont: 3,000 Gallons 7,000 Gallons 8,000 Gallons 10,000 Gallons Residential Service for a 5/8 " Meter WATER SYSTEM COMP ARISON OF TYPICAL MONTHLY RESIDENTIAL BILLS TABLE 8 Mr. Wayne Saunders, City Manager February 26, 1996 Page 23 C.P,A. CLERMONT: .rbørt John GrHnI8e, Jr, Jerry D. Brown, C,P.A. John S. Rios, C.P.A. Patricia A. Sykss-Amos, C.P,A. C. L (Chip) Gamer, C.P,A. Dorothy A. Kurras, C,P,A. John A. Powers, C,P,A. Marlc A. Farner, C.P,A. MOUNT DORA: GREENLE~ KURRAS RICE & BROWN, PA CERTIFIED PUBLIC ACCOUNT ANTS e e 1 ,,~ \ ' , <~ ." ',~ ~"'. '~'~ ,.~ . '. < .~ Mr. Wayne Saunders, City Manager February 26, 1996 Page 22 REPORT S AUD ITOR IKDEPENDENT sewer service for a residential single- of the City and other utilized for the other of providing monthly water and x 3/4-inch meter calculated under is provided in Tables 8 through 0 as of the billing month of September 1995 and are exclusive of local for outside City service, if any, or other rate adjustments For for all utilities were calculated on the basis of 3,000 sewer. The existing The Honorable Mayor and City Council City of Clermont, Florida the rates The rates A comparison of the cost family customer with a 5/8 neighboring Florida utilities utilities shown were in effect RATE COMPARISON Clermont, accompa- the re an opin- the are We have audited the general purpose financial statements of Florida, as of and for the year ended September 30, 1994, as table of contents. These general purpose financial statements ~,~~v of the City's management. Our responsibility is to express general purpose financial statements based on our audit the Ci ty of listed in nying sponsib.............J ion on 7,000, rates for taxes, companson purposes, 8,000 and 10,000 gallons per month consumption for both water and the System result in bills which are comparable to other similar utilities surcharges monthly bills franchise fees, We conducted our audit in accordance with generally accepted auditing standards and Government 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 ~ and disclosures in the general purpose financial statement assessing the accounting principles used and as well as evaluating the overall finan- that our audit provides a reasonable basis amounts also includes estimates made by management statement presentation. We believe our opinion wupporting the An audit significant cial for above present of Clermont, and its cash then ended in to City statements referred .L"'u~.lcial ',~. of the, s operations :or the Yj:ar purpose financial respects, the r:.,~. 30. 1994, and t and nonexpenè the general material opinion, in all In our fairly, Florida, in posit:"~.1 results of trust fund accepted accounting principles at September flows its proprietary conformity with generally an opinion on the general purpose combining, individual fund, and statements and schedules listed in the of forming whole The was made for statements account group financial table of contents the purpose taken as a Our audit financial are presented for purposes of additional analysis the general purpose financial statements of the City information has been to the auditing of the ;tatements and, in relation to the subjected financial : respects in general purpose all material as a whole in taken the fairly presented financial of Such audit required part of Clermont, Florida procedures applied in our opinion, is general purpose individual accompanying and are not a /' ~A OF CERTIFIED PUBLIC ACCOUNTANTS 627 N, Donnelly Street Post Office Box 8. Mount Dora. FL 32757 Telephone: (904) 383-8300 /"'" ./ --/ C0'"~/ ~ rJ~=//~'v~/ ~ '-~ , / & AMERICAN INSTITUTE statements )¿)) 2~ PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED 752 Montrose Street Post Office Box 120400. Clermont. FL 34712.{)4()() T elephonø: (904) 394-3258. il.-/0L J ~~~~ riorida 21, 1994 Clermont December MEMBER The TOTAL ASSETS Other Debits: Amount available for principal in debt service fund Amount to be provided for retirement of general long-term debt notes to the financial statements are $ 1.234,452 an integral $ 530 part of this statement 648 $ 85 409 $ 12.132 827 Assets Cash and cash Investments Receivables: Accounts Other Interfund receivables Due from other governments Prepaid expense Inventory Restricted Assets: Cash and cash equivalents Mortgages receivable Deferred charges Land Buildings Water System Sewer system Improvements other than buildings Machinery and equipment Construction in progress Accumulated depreciation 17,266 28,422 31,888 9.714 360 . . . 52.943 equivalents $ 633,148 514,014 $ 117.086 $ 85 409 $ 1. 082,962 506,707 ASSETS AND OTHER DEBITS G&"-¡'ERAL SPECIAL REVENUE DEBT SERVICE ENTERPRISE ALL GOVER.."lliENTAL CITY OF C~~ONT, FLORIDA COMBINED BALfu"-¡'CE SHEET FUND TYPES M~D ACCOUNT GROUPS SEPTL~ER 30 1994 . . . 619 (4 3 6 1. 874.981 169,573 30,111 109,608 10,000 3,333 16.040 FUND TYPES PROPRIETARY Mr. Wayne Saunders, City Manager February 26, 1996 Page 21 TABLE 7 SUMMARY OF PROJECTED OPERATING RESULTS Fiscal Year 1996 1997 1998 1999 2000 Revenues User Charges $1,532,400 $1,709,502 $1,952,006 $2,148,548 $2,367,13 Other Revenues 96,550 100,401 104,668 109,371 114,609 - --- Total Revenues $1,628,950 $1,809,903 $2,056,674 $2,257,919 $2,481,740 O&M Expenses 1,120,577 1,239,621 ] ,305,243 ] ,384, 193 1,469,468 - - ~.,-- - -- Net Revenues $508,373 $570,282 $751,431 $873,726 $1,012,272 Debt Service 326,458 325,744 329,344 327,358 324,900 Balance after Debt Service $ 181,915 $ 244,538 $ 422,087 $ 546,368 $ 687,372 Interest on BANs 0 (211,575) (423,151) (423,151) (423,151) Other Revenues and Requirements 28,553 (2,790) 359,862 257,704 627,949 Remaining Balance $ 210,468 $ 30,173 $ 358,798 $ 380,921 $ 892,170 Public Service Utility Taxes(') (PSUT) $ 710,830 $ 787,435 $ 870,007 $ 959,8]9 $] ,056,555 Coverages: a) Net Revenues to Debt Service 1.56 1.75 2,28 2,67 3,12 b) Balance after Debt Service to Interest on BANs n/a 1.16 1.00 1.29 1.62 c) Balance after Debt Service Plus PSUT to Interest on BANs n/a 4,88 3,05 3,56 4,12 d) Net Revenues Plus PSUT to Debt Service & Interest on BANs 3,73 2,53 2.15 2.44 2,77 (1) Public Service Utility Tax collections were provided by the City of Clermont. Note See Schedules 4. 5 and 6 for details and footnotes. 600 519 29 959 62 011 232 937 , . , , , , . . . 145 588 950 565 371 805) . . . 081 617 . . FIDUCIARY TOTALS FUND TYPES FUND TYPES ACCOUNT GROUPS MEMORANDUM ONLY) .-------- ---------- ... ... ... ... ------ - - . ----- ------...- TRUST GENERAL GENERAL INTER...~AL AND FIXED LONG-TERM SERVICE AGENCY ASSETS DEBT 1994 1993 ----- ------ ------ ... ... ... ... ... ... ... ... ... ... ... ... $ · . . $ 214,934 $ · . . $ · . . $ 2,133,539 $ 2,396,788 .. . 2,465,734 · . . · . . 3,486,455 3,585,484 22,521 · , . · . . · . . 209,360 183,573 · . . · . . · . . · . . 30,111 4,166 · . . 47,958 · . . · . . 185,988 221,048 · . . · . . · . . · . . 94,831 116,543 · . . · . . · . . · . . 3,333 3,333 · . . · . . · . . .. . 25,754 27,625 · . . .. . · . . · . . 1,874,981 1,761,422 · . . . . · . . .. . 360,619 450,774 · . . · .. · . . · .. 232,081 242,630 · . . · . . 866,909 · . . 1,804,526 1,794,515 · . . · . . 2,493,896 · . . 2,493,896 2,493,896 · . . · . . · . . · . . 3,600,145 3,513,827 · . . · . . · . . · . . 6,519,588 6,382,100 · . . · . . 3,216,548 · . . 3,246,498 3,109,858 · . . · . . 1,270,558 , . . 2,230,123 2,052,519 · . . · . . · . . · . . 62,371 . . . · . . · . . · . . .. . (4,011,805 ) (3,686,059) · . . · . . · . . 48,000 48,000 45,000 · . . · . . · . . 1,581,146 1,581,146 1,723,562 - ------ ----------- ----------- ----------- ------------ ------------ $ 22.521 $ 2.728.626 $ 7.847.911 $ 1.629.146 $ 26.211.540 $ 26,422,604 Continued e . Mr. Wayne Saunders, City Manager February 26, 1996 Page 20 To through 2000 have been escalated customer O&M 996 proforma budget. will result. rate growth. Detailed projections for the water and wastewate systems are shown in Schedule 3 are based on the anticipated fiscal year 1 expenditure modifications are made, changes expenses for the fiscal years 1996 estimated of inflation and O&M expenses the extent budget Projected O&M based on the 3 4 service payments for the BANs were provided by the and are subject to change based on the actual terms and debt The estimated annual City's Financial Advisor conditions of the sale. 5 The annual installment BAN will include 18 months of capitalized interest. will be interest only with first semi-annual to be due on December the 997 the BAN requirements required from Proceeds from 6 before interest 1 to assist in paying BAN the City Impact Fees will be first directed to be used being used for other capital projects 7 for the projects, to account Groves reduced Clermont 996 through 1998 have been credits for the Lennar and Impact Fees for fiscal year 175 prepaid and 200 ERC respectively. 8 fiscal requirements as ending September 30, 1995 and 6). Such projections existing bonds and the Projections of the operating results for the System for the fiscal years through 2000 are shown in Table 7 (as summarized from Schedules 4, 5 were prepared in accordance of the flow of funds prescribed by the assumptions and considerations used in the projections as previously discussed. to meet are utilized reserves existing System Summary of Projected Operating Results Transfer from needed 9 City has also pledged the Public Service Utility Anticipation Notes. Although it is anticipated will not be needed, projections of such amounts is demonstrated below on Table 7. Net Revenues of the System, the as security for the proposed Bonds Service Utility Tax collections on coverage In addition to the with their effect Tax collections the Public together that CITY OF CLERMONT, FLORIDA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTE!1BER 30, 1994 GOVER1'ME.."ITAL FUND TYPES PROPRIETARY ----- ----- --------- --- --... ----- ----------- SPECIAL DEBT LIABILITIES, EQUITY, &~D OTHER CREDITS GE~ERAL REVENUE SERVICE ENTERPRISE ... ---.................. --...... --........................ -- -- ---...............-- ------- ------- ------- ---------- Liabilities: Accounts payable $ 27,099 $ 1,085 $ · . . $ 101,617 Payroll related accruals 24,168 · . . · . . 30,479 Contracts payable · . . 2,598 · . . · . . Mortgage payable · . . · . . · . . · , . Payable From Restricted Assets: Deposits · . . · . . · . . 60,795 Accrued interest · . . · . . · . . 59,556 Revenue bonds · . . · . . · . . 150,000 Interfund payab1es 34,904 · . . · . . 124,600 Due to other government · . . · . . · . , · . . Deferred compensation payable · . . · . . · . . · .. Deferred revenue · . . 360,619 · . . · . . Revenue bonds payable · . . · . . · . . 3,328,124 ----------- --------- --------.. ------------ Total Liabilities 86,171 364,302 · . . 3,855,171 ----------- --------- --------" ------------ Equity and Other Credits: Contributed capital · . . · . . · . 3,020,157 Investment in general fixed assets · . . · . . · . · . . Retained Earnings: Reserved · . . · . . · . 1,604,630 Unreserved · . . · . . · . 3,652,869 Fund Balances: Reserved for streets 13 , 309 · . . · . · . . Reserved for police education 14,535 · . . · . · . . Reserved for inventory 9,714 · . . · . · . . Reserved for recreation 18,607 · . . · . ., . Reserved for cemetery care · . . · . . · . . · . . Reserved for debt service principal · . . · . . 48,000 · . , Reserved for debt service interest · . . · . . 37,409 · . . Reserved for employees' retirement systems · . . · . . · . . · . . Unreserved, designated for capital replacement 3,635 · . . · . . · . . Unreserved, undesignated 1,088,481 166,346 · . , · . , ----------- --------- --------- -----------. Total Equity and Other Credits 1,148,281 166,346 85,409 8,277,656 ----------- --------- --------- ------------ TOTAL LIABILITIES, EQUITY, AND OTHER CREDITS $ 1,234,452 $ 530,648 $ 85,409 $ 12.132.827 The notes to the financial statements are an integral part of this statement 2 The projected sales revenue for the System are based on customer growth projections and ERCs as discussed previously Projected revenues from the operation of the System have been based on the existing water rates and charges adopted by the Ordinance No. 277-M dated April 11, 1995, and the existing wastewater rates and charges as adopted by Ordinance No, 289-M. In addition, the projected operating revenues also incorporate adjustments to the monthly water and wastewater service charges estimated to be required during the five year projection period. These adjustments include annual price indexing of 1.95 percent for both water and wastewater monthly rates in addition to the required wastewater rate adjustments projected for fiscal years 1997 and 998. as discussed above The principal considerations and assumptions used in projecting following the operating the purpose this report. To the extent that actual differ from assumed herein or from information or assumptions provided or prepared by others, the actual results will vary from those estimated and projected herein. Such projections are, therefore, subject to adjustment and there are no assurances that the projections will be realized. results include the In the preparation of this report, certain assumptions are made with respect to conditions which may occur in the future. Although the assumptions are believed to be reasonable for the purpose of this report, they are dependent upon future events and actual conditions may differ from those assumed. In addition to the projections and estimates, certain information and assumptions provided or prepared by others have been used and relied upon. While believed to be reasonable for the purpose of this report, no further assurances with than for of respect thereto are offered, other conditions those Principal Presented are the financial projections for the System which include, for example, annual projections of revenue, projected operation and maintenance expenses, debt service, other income and required payments, transfers from existing System reserves and balances available for capital outlay and other System purposes. Projected revenue includes rate revenue, interest income on the available funds and other miscellaneous revenues derived from operations. The projected BAN interest is subject to change based upon the actual terms of the sale. However, based on the assumptions used herein, it is projected that the wastewater user rates will require an increase of approximately 5.3 percent effective October 1, 1996 (fiscal year 1997) followed by an approximate 7.2 percent increase effective October 1, 1997 (fiscal year 1998). Such wastewater rate increases are projected to be over and above the annual FPSC Deflator Index adjustment proposed in the Rate Study and adopted in Ordinance No. 289-M. Considerations and Assumptions Regarding Projected Operating Results Mr. Wayne Saunders, February 26, 1996 Page 19 City Manager . . e e Mr. Wayne Saunders, City Manager February 26, 1996 Page 18 TOTALS MEMORA...'mUM ONLY) FIDUCIARY FUND TYPES ( ACCOUNT GROUPS GE...~ERAL LONG - TER.'i DEBT GENERAL FIXED ASSETS TRUST fu~D AGE...~CY TYPES FUND TABLE 6 PROJECTED FISCAL REQUIREMENTS INTERNAL SERVICE 1993 1994 Years 998 Fiscal 196,229 47,038 112,562 53.562 $ 146,988 54,647 2,598 49.146 $ $ $ $ 187 17 $ 57,043 29,304 125,000 221,048 5,044 74,763 450,774 5,149,013 ------------ 6.521.380 60,795 59,556 150,000 185.988 . . . 146 49 2000 $515,376 56,030 689,350 138,737 69,975 $1,469,468 999 $489,420 52,546 $465,154 49,350 648 815 27,498 65,914 $1,384,193 6 ,275 117,309 62,155 997 $445,444 46,407 580,678 108,063 59,029 $1,239,62 996 $426,405 44,327 552,040 44,445 53,360 O&M Expenses Water - West Water - East Wastewater - West Wastewater - East Contingency (5%) TotalO&M . . . 85,669 360,619 908.124 . . . 364 669 1 85 . . . 120 25 $162,450 62,450 $163,679 63,679 $1,305,243 $164,672 164,672 $162,872 62,872 20,577 $163,229 63,229 $ Debt Service Water Wastewater Total Debt Service 2,931,526 7.667.569 130 020,157 847.911 064 4 6 3 7 .. . 1,580,000 ----------- 1,629,146 ----------- 87,033 ----------- 42,307 ----..---- $324,900 $215,807 207,344 5 $423 $327,358 $215,807 207,344 5 $423 $329,344 $215,807 207,344 $423.15 $325.744 $107,903 103,672 $2 575 $326,458 $0 o $0 Interest on BANs Water Wastewater Total BANs Interest 550,075 787.601 1 3 1,604,630 3.633.083 . . . 7.847.911 . . . 19.786) , $127,147 67,787 $194,934 6,200 ,210 $ 6 $177,410 $106,330 55,304 $161,634 $97,420 50,000 $147,420 $91,660 43,392 35,052 Capital Outlay Water Wastewater Total . .. 11,482 9,843 18,607 197,360 84,100 13 ,309 14,535 9,714 18,607 213,570 48,000 37.409 . . . 213.570 $61,011 (28,997) $51,537 (28,393) 44 $43,069 (27,816) $ $35,395 (27,266) 29 $ 5 (26,825) $ $28,5 Outlay Requirement Capital Other Fiscal (Revenues) Water Wastewater Total Other $32,014 $23 5,253 $8 ,690 RequIrements 469.879 2 023 428 2 2.428.023 3,635 1,169,547 ----------- 3,635 1,254,827 ------------ $2,444,467 $2,335,256 $2,234,625 $1,932,489 $1,583,777 Requirements Net Fiscal 847,911 7 593 2,641 ------- 19,786 PROJECTED OPERATING RESULTS 224 604 19,901 ------ 422 26 $ 147,410 ------- 540 $ 26.211 20 146 629 1 1. $ 911 847 7 $ 728,626 2 $ 521 22 $ the five fiscal years, 1996 through 2000, are information for the System as discussed of the System for fiscal requirements General Projections of the operating based on anticipated budgetary and herein. results The fiscal requirements of the System consist of O&M expenses, service, capital outlay and any other cost of providing for ongoing operations of the System. the purpose of this report, fiscal requirements have been projected to include allowances for both inflation and system growth. The fiscal requirements for fiscal year 1996 were provided by the City and represent the approved Table 6 provides a summary of the fiscal requirements as itemized on Schedule 3 and used budget in this study debt For nus PAGE INTENTlONAlL Y LEFT BlANK FISCAL REQUIREMENTS 999 2000 5,360 5,676 4,399 4.709 1998 5.067 4,1 2 1997 4.796 3.846 996 4.545 3.690 Fiscal Year TABLE 5 PROJECTED AVERAGE ERCs Water Wastewater Mr. Wayne Saunders February 26, 1996 Page 17 City Manager . CITY OF CLERM:JII'r, FLORIDA caiBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IIf FUND BALANCES ALL GOVERNMENTAL FUND TYPES FOR !HE YEAR ENDED SEPTEMBER 30, 1994 GOVERNMENTAL FUND TYPES . e . City Manager Mr. Wayne Saunders February 26, 1996 Page 16 TOTALS (MEH:JRANDUH ONLY 1993 1994 DEBT SERVIC!: SPECIAL REVENUE GENERAL wastewater rates and The current constant (FPSC) Deflator Index. current index factor will to all annual increase Commission also established an automatic charges based upon the Florida Public Service index factor is 1.95% that No. 289-M Ordinance $ 793,267 40,054 857,841 36,662 75,224 210,859 ----------- 016 910 432 402 066 046 983 39 505 38 91 135 1 $ $ 492 362 $ 1,620,524 39,910 505,432 38,402 91,066 112.300 $ Revenues Taxes Licenses and permits Intergovernmental revenues Charges for services remam automatically on occur will adjustments the rate annual report assumes the projection period and the of each fiscal year. This throughout October Fines and forfeitures Miscellaneous revenues the City 995 11 March are charged to all new connections to the System On through Ordinance 282-C, water and wastewater impact fees of: fees Impact adopted, 2,870 2,870 19,876 ---------- 382,368 3,013,907 ----------- 446,284 997,295 137,960 283,169 545,518 15,317 518,837 873,716' 2,792,872 420,678 1,017,962 144,789 257,539 14,065 17,034 573.517 4,193 18,223 2,407,634 420,678 1,017,962 144,789 253,346 14,065 17,034 555.294 Total Revenues government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Expenditures Current: General West * 315 304 $ East 864 2.374 $ Water Wastewater 619 $ $ 3,238 Total Capital outlay Debt service 996 Effective * 125,000 127,243 135,000 118,561 135,000 118,561 charges and fiscal Principal Interest from both unrestricted previous The System has cash available approximate amount funds will 4,070,339 ----------- 145 2,699 253,561 --------- 416 22 2,423,168 ----------- of Revenues Expenditures Excess (Deficiency Over Expenditures Total fees in the that these to be funded by earnings and impact City has indicated not required of $900,000 and $2,013,400, respectively to assist in the payment of fiscal requirements The be available 432 1,056 727 93 250,691 359,952 15.534 annual operating revenues. Uses Other Financing Sources in out 749,714 335,390 642.108 1,939,322 ----------- $ 297,214 414,324 325,611 316,516) ----------- 822 214 036 9.095 102 1.297 1. 400 $ 000 000 1,309 409 100 85 84 252 252 statement. $ 009 009 403 346 80.943 166 integral part of this 85 279 279 $ 73,611 37.507 570 127.711 148,281 104 36 20 1 1 $ an t.ransfers transfers Tot.al Other Financing Sources (Uses Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses statements are 30 The notes to the financial 1 SEPTEMBER October Operat.ing Operating Fund Balances FUND BALANCES EXISTING AND PROJECTED CUSTOMERS/ERCs An analysis of data provided by the City indicates that there are approximately 4,424 ERCs and 3,662 wastewater ERCs as of September 1995, The water ERCs are greater than the number of connections due to the number of multi-family dwelling units and application of the rates to commercial customers. Wastewater ERCs are greater due to the application of the proposed rate structure which accounts for multi-family dwelling units and meter size equivalencies. Utilizing projections in the Facilities Report, prepared by Springstead Engineering, Inc., a growth rate of 2% per year is used for water and wastewater on the west side customer base and a 9.6% growth factor is used for the east side service The projected average ERCs are summarized below in Table 5 water areas The FUND BAlANCES Fund Balances Excess (Deficiency) of Revenues Other Financing Sources Over Expenditures and Other Uses notes to the SEPTEMBER October 1 financial 30 statements are an integral part of this statement $ 1. 015.714 1,127,711 ----------- (111 997) $ 1. 148 1,127,711 ----------- 281 $ 132 567 The wastewater rate and rate structure adjustments as proposed in the Rate Study were adopted on November 14, 1995 pursuant to Miscellaneous Ordinance No. 289-M and made effective during the first billing period of December, 1995. A copy of the adopted ordinance is provided as Schedule 2. In summary, these adjustments provide for a Minimum Rate of $9.30 per equivalent residential connection (ERC) plus Variable Rate of $1.21 per 1,000 gallons of metered water. One ERC is equal to a Single Family 5/8" x 3/4" water meter. ERCs for residential Multi-Family master metered connections are considered based on the number of dwelling units times a 0.80 ERC factor. ERCs for all Commercial connections are based on the equivalency rates provided by the American Water Works Association (A WW A) as also tabulated in the Florida Administrative Code, The Variable Rate for residential customers is capped at 16,000 gallons of metered water per ERC per month. There is no cap on usage for Commercial customers. and 20.570 132.567 Total Other Financing Sources (Uses) Operating transfers in Operating transfers out Other Financing Sources (Uses 79,309 ----------- 113,309 (34.000) 36,104 ----------- 73 (37 611 507) 43,205) ----------- (39,698) (3.507) 3 Establish a consistent unit of measurement for demand on the wastewater system Allocate the net fiscal requirements based on a relationship of services provided the costs of providing such services. Excess (Deficiency) Over Expenditures (191,306) ----------- (15,534) ----------- 175,772 ----------- 2 to Establish a consistent group of customer categories consisting of Single Family, Multi-Family and Commercial. of Revenues The existing water rates, as established by Miscellaneous Ordinance No. 277-M provided on Schedule 1, are adequate to meet the net fiscal requirements allocated to the water system, including coverage requirements of the outstanding bonds. Since the East and West water systems serve two discernible service areas, each has a distinct set of rates as shown on Schedule 1. In summary, water rates for a single family customer connected to the West system consist of a minimum rate of $4.85 per month which includes 3,000 gallons and an Additional Use Rate of $1.10 per gallons for consumption over 3,000 gallons per month. Water rates for a similar customer East system consist of a $9.11 Minimum Rate plus an Additional Use Rate of $ 3 per gallons. No minimum gallons are included in the Minimum Rate for the East system Total Expenditures Total Revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Capital outlay Debt service 2,626,013 ----------- 2,434,707 ----------- 571,700 1. 002,826 147,680 279,012 15 , 715 17,478 591,602 2,580,418 -----...----- 2,564,884 ----------- 574,783 1. 017,962 147,934 253,346 14,065 17,034 555,294 45,595 ----------- (3 (15 25 1 36 , , ( , , 083) 136) 254) 666 650 444 308 The wastewater rates and rate structure as provided in Schedule 1 were recently adjusted in order to equitably allocate the fiscal requirements to the various classes of customers within the service area. The rate and rate structure adjustments are based on the results of the Wastewater Rate Study (the "Rate Study") prepared by Hartman & Associates. Inc. in a November 14 995 Briefing Document and are set so as to 000 1,000 of the Revenues Taxes Licenses and permits Intergovernmental revenues Charges for services Fines and forfeitures Miscellaneous revenues $ 1,512 40 484 186 74 137 , , , , , , 300 000 400 150 000 857 $ 1. 620 39 505 195 91 112 , , , , , , 524 910 432 652 066 300 130,177 ----------- 108 21 9 17 25 , , , , 224 (90) 032 502 066 557) BUDGET ACTUAL $ VARIANCE FAVORABLE (UNFAVORABLE ) by ordinance. The City has established a schedule of user rates service charges for the customers fees and miscellaneous using the System, These rates have been established The City has adequate provisions for collection and enforcement. and charges, impact fees and charges GENERAL FUND CITY OF CLERMONT, FLORIDA COMBINED STATE.J{ENT OF REVENUES, EXPENDITURES AND CH&~GES IN FUND BAlANCES - BUDGET AND ACTUAL - GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1994 RATES AND CHARGES Mr. Wayne Saunders, City Manager February 26, 1996 Page 15 . . e - Mr. Wayne Saunders, City Manager February 26, 1996 Page 14 VARIAN'CE FAVORABLE (UNFAVORABLE FUND ACTUAL SERVICE DEBT BUDGET FUND VARIANCE FAVORABLE (UNFAVORABLE) SPECIAL REVENUE ACTUAL BUDGET City's Comprehensive Annual budget for fiscal year 1995 operations as reported in the through 1994 and the annual Operating Results is a summary of the historical reports for fiscal years 1992 Historical Table 4 . .. (130) (130) $ $ . . . 2,870 ----------- 2,870 ----------- $ .. . 3,000 ----------- 3,000 ----------- 492 .. . 192 5,684 ----------- 5 $ 492 363,184 ----------- · . . 692 362 $ 000 .. . 500 357,500 ----------- 357 $ The and Financial operating revenues represent charges for services, other miscellaneous service charge revenues interest earnings. The operating revenues have increased by approximately 6% compounded annual growth from fiscal year 1992 through 1995. Furthermore, operating expenses are primarily those ongoing costs for labor, material, supplies, services and other expenses required to manage, and provide services. Operating expenses have increased by approximately 8% as annually during the same period of time. Prom fiscal year 1992 through 1995 revenues (expenses) mainly include interest revenue and debt service expense operate compounded non-operating TABLE 4 HISTORICAL OPERATING RESULTS .. . 7.807 .. . 4.193 .. . 12.000 Years Fiscal .. . 656 . . . 253,561 ----------- . .. 254,217 ----------- . . . 1. 115 · . . 18.223 . .. 19.338 (I) 995 994 ) 993 992 656 253,561 ----------- 254,217 ----------- 8,922 ----------- 22,416 ----------- 31,338 ----------- $1,429,275 $1,227,634 96,642 $ 40,865 $ Operating Revenues 526 250,691) ----------- (251,217) ----------- 14,606 340,768 ----------- 326,162 ----------- 948,236 956,638 794,615 725,969 Operating Expenses (2) 783 000 252 251. 217 039 (242,334 ) $ 48 $ 270,996 64,254) ( $ 402,027 (61,948) $ 414,896 (88.752) Income Non-Operating Revenues (Expenses) Operating .. . 617 617 · . . 254,650 ----------- (254,650 ----------- . . . (255,267 ----------- (255,267) ---------..- 783 252,000 ----------- 251,217 ----------- (61,018) ( 46,602) (414,324) ( 44,008) Out Operating Transfer 77,687 $ 60,140 $ ($ 74,245) 36 $ 282 Balance Net 1.309 1.309 84,100 ----------- 84,100 ----------- 15.223 86,118 18,165 ----------- 70,895 18,165 ----------- Derived from Comprehensive Annual Financial Report. Excludes depreciation. (1) (2) Notes 1,309 $ 409 85 $ 100 84 $ 15.223 $ 283 104 $ 060 89 $ CITY OF CLERliONT, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENS ES AND CHANGES IN RETAINED EARNINGS/FUND BALANCES AU. PROPRIETARY FUND TYPES AND SIMIlAR TRUST FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 1994 PROPRIETARY --...------- ENTERPRISE ---------- Operating Revenues: $ 1,896,061 Charges for services Investment earnings (losses) ., . Contributions . . . Cemetery lot sales .. . Sale of recycled materials 10,042 Reimbursements 32,901 ---...------- Total Operating Revenues 1,939,004 ----------- Operating Expenses: Personal services 554,780 Utilities 154,517 Landfi 11 224,077 Administrative services 157,250 Repair and maintenance 231,595 Depreciation 325,746 Professional services 93,370 Insurance 77,986 Operating supplies 56,394 Office expense 19,164 Bad debt expense . .. Benefit payments .. . Refunds .. . Trustee/administrative fees .. . Medical claims .. . ----------- Total Operating Expenses 1,894,879 ----------- Operating Income (Loss) 44,125 ----------- Nonoperating Revenues (Expenses): Interest revenue 104,216 Interest expense (251,890) Grants 10,000 ----------- Total Nonoperating Revenues (Expenses) (137,674) ----------- Income (Loss) Before Operating Transfers (93,549) Operating Transfer (out) (46,602) Operating transfer in 37,507 ----------- Net Income (Loss) (102,644 Retained Earnings/Fund Balances - October 1 5,360,143 ----------- RETAINED ~~INGS/FL~D BALANCES - SEPTEMBER 30 $ 5.257.499 The notes to the financial statements are an integral part of this statement (1) (2) (3) Derived from FY 1994 Comprehensive Annual Financial Report Based on actual customer and flow data provided by the City. Estimated at 90% of metered water flow, Notes (1 ,000s of gallons) Commercial Total Annual Metered Flow Wastewater Accounts Residential 386,582 2,127 298 2,425 (3) 419 210(3 , 2,218 313 2.531 442 2,252 319 2.57 94(3) 397,912 2,447 356 2.803 (1,OOOs of gallons) Commercial Total Annual Metered Flow Water Accounts Residential 429,536 2,195 346 2.54 465.789 2,307 366 2,673 49 32 2,345 374 2,719 486,3 3,103 398 3,50 1992 1 993 ( 994 995 (2 Fiscal HISTORICAL CUSTOMERS AND FLOWS WATER AND W ASTEW A TER Years TABLE 3 A review of the City's customers indicates that the System provides service to two major customer classes: 1) Residential and 2) Commercial. Furthermore, residential customers are comprised of single family and multi-family customers. Single family customers are representative of single dwelling units connected to the System through individual meters, while multi-family customers are connected through a common master meter (e.g., apartments, condominiums, etc,). As can be seen in Table 3, there are currently approximately 3,501 water and 2,803 wastewater connections as compared to 2,541 and 2,425 connections, respectively, in fiscal year 1992. This represents an approximate annual compounded increase of 11 % for water and 5% for wastewater. Additionally, metered water flow is 486,311,000 gallons in fiscal year 1995, while metered wastewater flow is about 397,912,000 gallons for the same year as compared to 429,536,000 gallons and 386,582,000 gallons, respectively, in fiscal year 1992 Customers HISTORICAL CUSTOMER AND FINANCIAL RESULTS Mr. Wayne Saunders, City Manager February 26, 1996 Page 13 -\ . TOTALS (MEMORANDUMS ONLY) - - - ..----- - ---..--- 1994 1993 .. .. .. - .... .. .. $ 2,142,394 $ 2,036,030 (22,913) 261,593 140,210 148,597 16,800 11,690 10,042 17,071 63,450 4,022 ----------- ----------- 2,349,983 2,479,003 --..-------- ---..------- 554,780 530,044 154,517 149,417 224,077 164,699 157,250 152,665 231,595 116,119 325,746 307,913 93,370 70,895 139,392 124,680 56,984 60,584 19,164 19,457 . .. 3,683 121,260 80,140 . . . 963 50,285 36,519 200,557 147,129 ----------- ----------.. 2,328,977 1,964,907 --------...-- ----------- 21,006 514,096 ----------- -------..--.. 104,370 126,496 (251,890) (171,989) 10,000 8,305 ----------- ----------- (137,520) (37,188 ----------- ----------- (116,514) 476,908 (46,602) (414,324 37,507 . . . ----------- ----------- (125,609) 62,584 8,004,915 7,942,331 ----------- -----..----- $ 7,879.306 $ 8.004.915 . FIDUCIARY FUND TYPES --------- -------- P&~SION NONEXPENDABLE TRUST TRUST ----- ----- $ .. . $ · ., (22,913) · . . 140,210 .. . · . . 16,800 .. . · . . .. . · . . - -------- ----------- 117,297 16,800 ----------- ----------- · . . · . . · . . · . . · . . · .. · . . · . . .. . · . . .. . .. . · . . " . · . . · .. · . . 590 .. . · ., · ., · . . 121,260 · .. · ., · ., 37,893 · . . · . . · . . ----------- ----------- 159,153 590 ----------- ----------- (41,856) 16,210 ----------- ----------- · . . · . . · . . · . . · . . · . . ----------- ----------- · . . · . . ----------- ----------- (41,856) 16,210 · . . · . . · . . · .. ----------- ----------- (41,856 16,210 2,469,879 197,360 ----------- ----------- $ 2.428.023 $ 213,570 FUND TYPES ---------- INTERNAL SERVICE ------- $ 246,333 .. . .. . · .. · .. 30,549 ----------- 276,882 ----------- " . .. . · . . · . . · . . .. . · . . 61,406 · . . .. . .. . .. . · . . 12 , 392 200,557 ----------- 274,355 ----------- 2,527 ----------- 154 · . . · . . ----------- 154 ----------- 2,681 · . . · . . ---.------- 2,681 (22,467) ---.------- $ (19,786) - PROPOSED PROJECT FUNDING PROGRAM TABLE 2 e Mr. Wayne Saunders, City Manager February 26, 1996 Page 12 $ 8,060,000 080 323,314 617,400 752 3,067,672 564,200 80,600 759,958 00,000 368 752 $ 5,346,381 572,531 71 $ 9,831 $ 9.831 Sources Proceeds from BANs During Construction Groves (Partial Payment) Contingency Wastewater Improvements Water Improvements ( Developer Contributions Retire Line of Credit Capitalized Interest FDEP EDB Grant Costs of Issuance Clermont Reserves Interest Uses: $3,000,000 previously funded by Line of Credit. (1) Note City then Inc revenue bonds in the year 2000 to a 1993 City of Arcadia Pool revenues to The the refund System agreement with Arcadia to provide funds necessary Gulf Breeze Loan and the Series 1972 Revenue Bonds 2ity also has the Management, lien on issue As previously discussed, it is expected that the City will retire the BANs. In addition to the proposed BANs, the i The Arcadia loan is secured by firs1 outstanding 1988 Public Financial Source Loan outstanding. entered into the loan The Cash and Cash Equivalents at End of 'fear note. to the financial statements are an integral part of this statament Cash and Cash Equivalents Beginning of 'fear $ 2,957.943 $ $ 214 934 $ 3 172 877 $ 3.326,547 at Net Increase (Decrease and Cash Equivalents 3,129 187 197 360 3 . 326 . 547 3 146.942 Net Cash Provided By Investing Activities in Cash 171,244 17.574 153.670 126,733 ----------- 179.605 Cash Flows Interest Investment purchases 126.579 147,183 20.604 154 147 20 337 604 102 126,496 24.341 155 From Net Cash Provided (Used) By Capital and Related Financing Activities Investing Activities 633,438 ----------- 154 38,134 ----------- of capital aasets Principal paid on revenue bonds Interest paid on revenue bonds Contributed capital Refunding proceeds 430,090 125,000) 166,979 88.631 633 430,090 125,000 166,979 88.631 438 93,232 (110,000 142,685 209,242 98,541 Cash Flows From Capital Financing Activities: Acquisition and construction and Related Net Cash Provided (Used Noncapital Activities 437,046 ----------- The 1996 BANs, together .nd $5,9 improvement projects ($8,918,912 less of ~l 1'1 as well outstanding line of credit in the estimated amount of $3,067,672. In addition, the proceeds will provide for 18 months of capitalized interest and costs of issuance. The capitalized interest is to provide interest payments during the anticipated 18-month Project construction period. The anticipated debt service provides for interest-only payments, with the entire principal amount being due in the year 2000 Table 2 provides a summary of the sources and uses of the proposed funding Cash Flows From Noncapital Financing Activities: Operating transfer in Operating transfer out Advance to other fund Grants by (789 37,507 46,602 8.306 789 37,507 46,602 8,306 ----------- 414,324 (32,741 10,019 ----------- program Net Cash Provided (Used Operating Activities provide proceeds $3,000,000 from Line Cr"d:+\ as to BAN in capital retire the Cash payments Cash payments Cash payments Cash Flows From Operating Activities Cash received customers from to suppliers for employee for medical By services claims $ 336.404 1,956,360 (1,068,934 551.022 154 $ 254,361 (73,798 180.717) s 17.574 18,164 (590 S 2 (1 353,824 228,885 143,322 551,022 180,717 ----------- S 2 552,630 073,728 {843,864 {534,206 {143,028 ----------- with other sources, lien on the City's water and wastewater revenues The implement programs that will accomplish the following goals (2) increase net revenues available to support the debt (3) adjust the wastewater rates and rate structure (5) promote developer agreements will service payments ( 4) initiate 8,912 a City is striving to immediately (1) address customer growth; of the future bond issue; of future capacity and sale ENTERPRISE INTERNAL SERvICE FIDUCIARY FUND TYPE --------- NO~..NDABU !RUST 1994 1993 the year subordinate is contemplated that 2000. The BANs City will issue five-year will be secured by the BANs net retired by a revenue bond proceeds of the bond issue as ssue well as PROPRIETARY FUND TYPES TOTALS (HEMJRANDUMS ONLY It the to be In CITY OF CI.ERl'fJNT, FLORIDA CCMBINED STATniDiT OF CASH F1ßIS ALL PROPRIETARY FUND TYPES AND NQNEXPENDABU !RUST FOR THE YEAR DillED SEPn21BER 30, 1994 FUNDS PROPOSED PROJECT FUNDING Mr. Wayne Saunders February 26, 1996 Page 1 City Manager -~, . . FIDUCIARY TOTALS PROPRIE'!ARY FUND TYPES FUND 1'YPE (MEMJRANDUMS OKL Y ---------------------- --------- ----------------- INTERNAL NONEXPENDABLE EN'I'ERPRISE SERVICE TRUST 1994 1993 ------- -------- --------- ---- ---- R.conciliation of Op.ratina Income to N.t Cash Provided (Used) by Operatins Activiti..: Op.ratina Incom. (Lo.a) $ 44,125 S 2,527 S 16,210 S 62,862 $ 210,466 - ------- --------- --------- ----------- ----------- Adjustm.nt. to Reconcile Op.ratina Incom. to N.t Cash Provided (Us.d by Op.ratins Activiti..: D.pr.ciation 325,746 ., . .. . 325,746 307,913 Chana. in Ass.t. and Liabiliti..: Decr.a.. (Incr....) in r.c.ivabl.. 17,354 (22,521 .. . (5,167) 1,581 D.cr.a.. in inventory 1,742 .. . ., , 1,742 2.536 Incr.a.. (D.creas.) in accrued .xp.ns.. 3,758 .. . . .. 3,758 (4,162 Incr.a.. (D.cr.a..) in payab1.. (56,321) 19,840 1,364 (35,117) 34,296 - ------- - ----- --------- ----------- ----------- Total Adjustm.nt. 292,279 2,681 1,364 290,962 342,164 - ------- - --- --------- - ------- - ------- Net Cash Provided (Used) by Operatina Activiti.s: $ 336,404 $ 154 $ 17.574 $ 353.824 $ 552,630 e e Mr. Wayne Saunders, City Manager February 26. 1996 Page 10 Needs to E-5 MGD plant. 8 To be completed along with 0.75 immediate funding Hook Street/Wilma Lake/SR 50 Force Main from Lift Station $174,840.60 Estimated Cost of Construction Timing of Funding Plans currently being prepared CS35-269990 permits in hand. FDEP Permit No. CS35-268054 Needs MGD plant. immediate funding immediate funding FDEP Permit No To be completed along with 0.75 immediate funding Have not applied. Completed. Needs All $121,087 Completed. Needs Permits in hand $342,019.34 8 $52,719.06 to E-6 to E-6 Gravity Line of Construction: Jack's Lake Road Gravity Sewer of Construction: Permits Hancock Road Gravity Line Permits SR 50/Power Easement Cost of Construction: Timing of Funding Timing of Funding Timing of Funding Estimated Cost Estimated Cost Permits Plans currently being prepared Have not applied. Permits Hook Street/Wilma Lake Gravity Line to E-4 Needs MGD plant. $129,064.03 To be completed along with 0.75 immediate funding Estimated Cost of Construction Timing of Funding Plans currently being prepared Have not applied Permits Permits Have not applied. Plans currently being prepared. Timing of Funding To be completed along with 0.75 immediate funding. MGD plant. Estimated Cost of Construction: Jack's Lake Road Force Main from E-l to E-5 $137,849.25 Needs Permits Have not applied. Plans currently being prepared. Timing of Funding To be completed along with 0.75 immediate funding MGD plant. Estimated Cost of Construction: SR 50 Force Main from E-S to E-6 $78,000.00 Needs THIS PAGE INTENTIONÞJ.L Y LEFT BlANK Permits Permits in hand, FDEP Permit No. CS3S-268054 Timing of Funding: Completed Needs immediate funding Estimated Cost of Construction $226,362.00 Hancock Road Force Main from E-6 to Plant Wastewater Transmission Lines Permits Application for permit currently being executed. Timing of Funding Estimated Cost of Construction Construction to begin as soon as permitted. Construction is to be completed as soon as possible. Needs immediate funding $200,000.00 Emergency standby power generators for lift stations 9, 18 installed to ensure operation of the stations during power preclude overflow ofthe stations during these conditions Lift Station Generators 5,21, and El are to be purchased and outages or emergency conditions and Mr. Wayne Saunders, February 26, 1996 Page 9 City Manager /--,.t . CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS . e e Mr. Wayne Saunders, City Manager February 26, 1996 Page 6 The City's general employees, police officers, firemen participate in the City's Employees Retirement Systems systems function for the benefit of the employees and are governed by a seven- member pension board which is up of the five members of the City Council and a representative police department and the volunteer fire department respectively and volunteer These Included within the reporting entity Retirement Systems Employees The City of Clermont main collection artery system for will be tied into future homes and the lines designed to provide The arterial trunk lines Wastewater Transmission Lines East which develop along the route of the this time are Side WWTP The lines proposed at transmission to the businesses made of the obligated to fund all The City is authorized The City and retirement system participants are retirement system costs based on actuarial valuations to establish benefit levels With the construction of the 0.099 MGD WWTP to be complete in June 996, the City's primary concern is to collect wastewater from the area immediately surrounding the WWTP. This is to be accomplished by the construction of a gravity sewer line along the Florida Power Corp. easement south from SR 50 to Hancock Road where lift station E-6, the master lift station for the 0.75 MGD be located. A 7,000 foot force main has been constructed from E-6 to carry the treatment plant. plant, wil wastewater to the the reporting entity Excluded from of the six the first IS station E-l Lift Lift station E-l is located in the Northridge Subdivision. proposed lift stations to serve the East Clermont. 20, 1959 by a one of three the Board of ~~-' to make ets that of it City does District The Lake Apopka Natural Gas District was established on June speci~l act of the Florida legislature. The City of Clermont is member municipalities and is entitled to appoint one member to Commissioners of the district. The Board of Commissioners is empowe.~u monetary distributions to the member municipalities of net current have not been reserved or designated for capital expansion. Clermont has no legal obligation on District debt or deficits significantly influence the operation of the District The nor Natural Gas Lake Apopka From E-I the wastewater will travel through a force main to E-l (a booster lift the intersection of Pitt Street and Jack's Lake Road. At this point, the force wastewater travels by way of gravity sanitary sewers to lift station E-3, located 4,300 feet north of SR 50 along Jack's Lake Road. From E-3 the wastewater is pumped 2,400 feet south to manhole MH E5-5, located on Jack's Lake Road west of the future hospital. At this manhole the wastewater gravity flows to lift station E-5, 300 feet south of SR 50 station) and then to main ends and the along SR 50 to MH E-6-22 Wastewater At this location the gravity line will station E-6 station E-5 the wastewater will be pumped east east to the Florida Power Corp. easement. line referenced earlier which flows into lift From lift then gravity flows tie into the gravity Cooper Memorial Library within the city limits and provides The City holds title to the library note payment. The City also makes an The Library Board selects and hires and is responsible for the operation any of the Board members The Library is located service residents of the City. building and makes the annual mortgage annual contribution to the Library. staff, establishes the budget, The City does not appoint Memorial the Cooper to Northrid~e Lift Station (E-I) management of the Library $96,500.00 Cost of Construction immediate funding Needs Already constructed Timing of Funding South Lake Hospital which is residents of the City. The tax Council has no ability to or provide funding City budgets Lake County Hospital Tax District The South Lake Hospital Tax District operates located within the City and provides service to district has a separate elected board. The exercise influence in daily operations approve South Permits in hand. FDEP Permit No. CS35-2602l8 $246,824.00 $246,824.00 Jack's Lake Road Lift Stations (E-2 and E-3) E-2 E-3 Estimated Cost of Construction: Permits To be constructed in the spring of 1996 Timing of Funding immediate Plans currently being prepared Needs funding Have not applied Permits Permits Application for permit currently being executed To begin construction as soon as permitting process allows Needs immediate funding. Construction is to be completed prior to September 1996. Fiduciary Funds Trust and Agency Funds - trustee capacity or as an other governmental units trust and agency funds essentially the same To account for assets agent for individuals and/or other unds. Pension funds held by private These Timing of Funding Estimated Cost of Construction This will $1 facility will use the contact stabilization process for the treatment of wastewater. be constructed to Class III reliability standards and will generate treated effluent placed into rapid infiltration basins for recharge to the surficial groundwater. 570,525.00 The plant which will be To department to other the or agency governments financing of goods or to other departments or on a cost-reimbursement 0.75 MGD Wastewater Plant All permits in hand. FDEP Permit No. DC35-259311 2 purposes account for Permits Timing of Funding This WWTP facility utilizes step aeration in the treatment of wastewater. The reclaimed water will be reused by infiltrating the water back into the ground through the use of Rapid Infiltration Basins (RIBs). Cost of Construction: Already constructed. Needs $337,278.82 immediate funding Governmental Funds 1 General Fund - To account required to be accounted Special Revenue Fund - sources (other than capital projects) specified purposes. Debt Service Fund . and the payment of related cost To general account for the accumulation of long term debt principal resources for, interest and To serve the immediate needs of the East Clermont area, a 99,000 gallons per day wastewater treatment plant (WWTP) has been constructed on south Hancock Road. The purpose of this plant is to immediately serve the wastewater needs of current development surrounding the facility, 3 2 the City in a organizations, f include pension trust are accounted for in manner as Proprietary Funds, since capital maintenance is critical. Agency Funds are purely custodial (assets equal liabilities) and thus, do not involve measurement of results of operations Proprietary Funds - 1 Enterprise Funds To account for operations (a) 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) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body had decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance public policy management control, accountability or other Internal Service Fund - services provided by one agencies of the City. or basis special that are for all financial for in another fund. To account for the proceeds of specific revenue assessments, expendable trusts or for major legally restricted to expenditure for 0.099 MGD Wastewater Plant WASTEWATER IMPROVEMENTS All permits in hand. FDEP Permit No. WD35-266626 resources except those Permits 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 comprise its assets, liabilities, fund equity, revenue 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. The various funds and account groups of the City are as follows Timing of Funding The existence of EDB contaminated wells allow for municipalities to receive limited funding for the construction of a community potable water distribution system to serve the residences with the contaminated wells. The City of Clermont has exercised its option to receive State funding to assist in the construction of the distribution lines in the areas which have known contamination. EDB Water Lines Cost of Construction Already constructed. Needs $459,005.27 immediate funding CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS \. Mr. Wayne Saunders, City Manager February 26, 1996 Page 5 . CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS . e e Mr. Wayne Saunders, City Manager February 26, 1996 Page 4 Account Groups - General Fixed Asset Account Group - is used to maintain control and cost information for all fixed assets other than those accounted for in the Proprietary and Nonexpendable Trust Funds record the recorded in General Long-Term Debt Account is used to outstanding long-term obligations otherwise Proprietary, Nonexpendable Trust and Pension Trust Funds Group - not Wells and Pumping System The City of Clermont recently purchased the Greater Hills potable water supply and distribution system, known as Lake Hills Utilities. The purchase and immediate assumption of the operation of this utility provides the City of Clermont an immediate source of potable water to serve the growing population in the East Clermont area. Utilities Lake Hills Basis of Accounting - The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating state- ments of these funds present (i e., revenues and other financing sources) and decreases (i.e and other financing uses) in net current assets increases expenditures C immediate funding Needs All permits in hand PWS ID No. 3354779 157.00 Already purchased. $1,492 Cost of Purchase Timing of Funding Permits All proprietary funds nonexpendable trust funds and pension trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund-type operating statements present increases (e.g revenues) and decreases (e.g expenses) in net total assets Utilities Pump Upgrade and Connection to SR 50 water line was constructed to increase pressure Lake Hills Service pumps were upgraded and a larger diameter to serve a larger water service area. $326,288.82 Estimated Cost of Construction immediate funding Already constructed. Needs Timing of Funding The modified accrual basis of accounting is used by all governmental fund types and agency funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available,) "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The government considers property taxes as available if they are collected within 60 days after year end. A one-year availability period is used for revenue recognition for all other governmental fund revenues. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the following year All permits in hand FDEP Permit No, WD35-270348 Permits Elevated Storage Tank and Transmission Line Along SR 50 An elevated storage tank is to be constructed at a site north of the right-of-way of SR 50 approxi- mately 3,000 feet west of the intersection of Hancock Road and SR 50. The elevated water tank, to be constructed at a ground elevation of 285 feet, will maintain the desired pressure in the water distribution system during peak and fire flow demands $605,707.6 $197,620.50 Tank SR 50 Trans. Line Estimated Costs of Purchase taxes and licenses, are considered susceptible to accrual All major revenues, except property measurable and available and. as such, Construction funds 1996 To be completed by November needed in early 1996. Timing of Funding types method, the time accrual basis of accounting is utilized by proprietary fund trust funds and nonexpendable trust funds. Under this recorded when earned and expenses are recorded at incurred are are The pension revenues liabilities WD35-28l884 permits in hand, FDEP Permit No All Permits the City is not used by Encumbrance accounting 1 Cash cash Cash Equivalents includes amounts and Investments - For purposes of cash flows in demand deposits as well as short-term St. Johns FDEP Permit FEDP Permit River CUP No. 2-069-1l80ANG No. WD35-270350 No. WC35-271346 E Assets Budgets are not adopted for the impact fee, internal service and trust and agency funds. Budget amounts for the general, infrastructure, and debt service funds are reported in the combined financial statements. A comparison of budgeted and actual (budgetary basis) expenses in the enterprise funds is shown in notes to financial statements No. 2 Liabili ties and Fund Equity Permits Timing of Funding All permitting completed with exception of as-builts on pumping and well house. Currently under construction. Needs immediate funding The City Manager is authorized to transfer budgeted amounts within departments within any fund. However, any revisions that alter the total expenditures of a department must be approved by the City Council. Budget amounts are reported as originally adopted or revised. A schedule summarizing budget revisions by fund is presented in notes to the financial statements No 2 Estimated Cost The Hancock Well is a potable water supply well to provide source water for the east side of the City of Clermont. The well was designed and constructed so that the source of water is significantly below, and sealed off from, a portion of the Floridan Aquifer in the area which is contaminated with EDB. The well is a 12-inch diameter well designed to pump at a rate of 1,500 gallons per minute. The well has been constructed and the pumphouse, pumping equipment and telemetry are currently being constructed of Construction $491 751 64 Budgets are prepared on a basis consistent with generally accepted accounting principles (GAAP) for the infrastructure fund and the non- expendable trust fund. The general fund's non-GAAP basis budget includes reimbursements from other funds as revenues rather than as reductions of expenditures. The enterprise funds' budgets are prepared on a non-GAAP basis as depreciation in the utility fund is not budgeted while debt principal payments and capital additions are budgeted as expenses in all enterprise funds. Hancock Well WATER IMPROVEMENTS The improvements, as described by Springstead Engineering, cost and permitting, are as follows with estimates of probable In the general fund the following departments had an excess of expenditures over appropriations: finance ($11,147), other general government ($13,205), law enforcement ($2,691) fire control ($12,445) public works ($254), and library ($482.) together The legal level of budgetary control is the department level. Administrative control is maintained at the object level through integration with the accounting records Appropriations lapse at the end of each fiscal year Total Transmission Lines Generators Gravity Sewers Total Wastewater Improvements $ 8,918,912 617,052 200,000 644,889 $ 5.346,381 2 3 Prior to August 31, the City Manager submits to the City Council the proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted to obtain taxpayer comments. Prior to October 1, the budget is legally enacted through passage of an ordinance Lift Station Rehabilitation Wastewater Improvements Treatment Plant Lift Stations $ 450,054 ,907,804 1.526,582 1 The City follows these procedures in establishing the budgetary data re- flected in the financial statements D Budgets ESTIMA TED PROBABLE IMPROVEMENT COST SUMMARY TABLE 1 (Continued) CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS \ Mr. Wayne Saunders, February 26, 1996 Page 3 City Manager . CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STAT~~S . e e Mr. Wayne Saunders, City Manager February 26, 1996 Page 2 investments with a maturity date within three months of the date acquired by the government. Governmental fund investments are generally stated at cost or amortized cost. Proprietary fund investments are stated at lower of cost or market Pension fund and deferred compensation agency fund are reported at market value Accounts Receivable From Other Governments - Those amounts represent a claim against another government, and are measurable, been accrued. Receivables - The Yater and Sewer System maintains the direct write-off method of bad debt recognition due to the immateriality of the amounts. The City has no concentrations of credit risk. Inventories - Inventories are priced at cost using the first-in, first- out method. Inventories are maintained by the General Fund and the Utility Fund. The City uses the consumption method in expensing governmental fund inventories. Restricted Assets - The restricted assets shown on the Enterprise Fund balance sheet represent those assets of the Enterprise Fund which are earmarked for specific purposes and cannot be used for paying general obligations of the Fund. The corresponding liability designated as payable from restricted assets represents the current maturities for which the restricted assets are accumulated. Fixed Assets - General fixed assets are used to consists of three wells and two elevated storage tanks together with 45 miles of transmission and distribution facilities The quality of groundwater does not require treatment, sinfection water system The water that have 2 3 only di The City currently provides wastewater connections Unlike the water system, there is only one m""'~w, ,'<>.."~r><>,, to all customers, both within and outside the corpe City. The wastewater tr t facility currently providing service has a permittee ty of 0.95 million gallons per day ,) and is presently operating at approximately 77% e The wastewater system contains ~s of transmission and gravity sewers, together with tations to approximately 2,803 which provides ~'-'.. 1........", servIce .,..."'t. lter service area limits of the 4 5 construction of a 0.75 MGD wastewater treatment plant to provide flow from the existing treatment plant. Upon MGD of wastewater flow from three lift will reduce the City, disposal influent loading on west side of the and provide for the the The City is proposing the capacity for growth on the east side and receive completion, the new plant will receive approximately 0.30 stations presently pumping to the existing facility. This existing plant and allow sufficient capacity to accommodate growth on Additionally, the new plant will treat the effluent to reuse standards through both spray irrigation and percolation ponds 6 not capitalized in the funds acquire them Instead, capital acquisition and construction are expenditures in governmental funds, and the related assets are reported in the general fixed assets account group. All purchased fixed assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. fixed assets are valued at their estimated fair market value received or construct reflected as Donated on the date IMPROVEMENTS The City authorized Springstead Engineering, Inc. ("Springstead") to inspect the existing water and wastewater systems and provide an estimate for capital improvements based on the anticipated growth and development in the area. Springstead's recommendation provided for the completion of various water and wastewater improvements, CAPITAL not add to the not capitaliz- the remaining The costs of normal maintenance and repairs that do value of the asset or materially extend asset lives are are capitalized and depreciated over related fixed assets as applicable ed. Improvements useful lives of the infrastructure for the development south of the City The cost the necessary utility of the City and Highway 27 improvements are summarized below in Table The improvements are designed to provide areas along the State Road 50 corridor east of these Public domain ("infrastructure") general fixed assets consisting of roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are capitalized by the City along with other general fixed assets 1 ESTIMATED PROBABLE IMPROVEMENT COST SUMMARY TABLE not in the proprietary method, over the depreciated Assets in the general fixed assets account group are Depreciation of buildings, equipment and vehicles fund types is computed using the straight-line following estimated useful lives 983,909 605,708 523,909 $ Water Improvements Wells and Pumping Elevated Storage Tank Transmission Lines Useful Lives years) 459,005 EDB Water Lines 40 40 35 25 5 3 Proprietary Type Funds Buildings Land Improvements Equipment $ 3,572,53 Water Total Property taxes payable Maximum discount Delinquent Tax certificates sold November April 1 May 31 URL.-\:'\D( FORT 2l EAq PI:'\E STREET' Slîn I TELEPHO:--;E (-f(¡-j H~9-5')':;':; \IYERS FORT PIERCE 00 . OR L.-\:'\ DO, FL ~2H( . F,\..'\ (r) 8,'9·,-90 jACKSO:'\\ILLE TAL ,\H.-\SSEE Interest income is allocated to Unbilled revenue, recorded in the following Interfund Transactions - fers from receiving revenue to the esources expended, transfers of tax revenues a .~~ revenue debt service fund, transfers from the general :uncl to or capital projects fund, operating subsidy transfers or a special revenue fund to an enterprise fund enterprise fund other than payments in lieu of fund expenditures Property Tax (latest date the are fund a a special revenue from the general transfers from an to finance general 4 Recognition where appropriate) Assessment/lien date Assessment roll validated Millage resolution approved Beginning of fiscal year for taxes have been levied Tax bills rendered and due which The are key dates in as follows October November January July 1 September property the and taxes 1 1 30 1 30 tax cycle The City currently provides potable water service to approximately 3,501 connections The water system is divided into two separate service areas defined as the East System and the West System. The West System is the older of the two systems and serves primarily those customers \vithin the immediate City limits consisting of approximately 2,960 (84,5%) of the total water customers, The East System resulted from an effort to efficiently expand the water service area and accommodate anticipated growth east of the City. This was accomplished through the acquisition of Lake Hills Utilities, Inc" a water supply and distribution system that serves the Greater Hills and Greater Pines subdivisions. The East System currently provides service to approximately 541 (15,5%) of the tota connections EXISTING CUSTOMERS AND SERVICE AREA 3 2 1 speci~' j resulting from pooling of cash in master the funds in their proportionate share. which results from cyclical billing fiscal year Legally authorized fund through which from fund to be to practices bank is accounts The City of Clermont is located in southern Lake County, Florida (see Location Map) and encompasses a five square mile area approximately 25 miles west of Orlando near the intersection of US Highway 27 and State Road 50. The current population is estimated to be 7,233 according to information provided by the University of Florida Bureau of Economic and Business Research. Due to its proximity to the Orlando Metropolitan Area, the City and surrounding area is expected to experience growth over the next decade Interest is exempt debt amount offsetting interest expense incurred until completion of the project with proceeds over the same period. Compensated Absences - No accrual is made for accrued vacation the governmental funds because of immateriality. Accumulated leave of employees in the proprietary funds is recorded as an expense and liability of those funds as the benefits accrue to employees. No accrual is made for sick leave benefits which accumulate but do not vest until retirement. Long-Term Obligations - Long-term governmental fund when due. For portion expected to be resources is is recognized as a liability of a long-term obligations, only that financed from expendable available financial reported as a fund liability of a governmental fund. The portion of such obligations is reported in the general long- term account group. Long-term liabilities expected to be financed from proprietary fund operations are accounted for in those funds. Fund Equity - Contributed capital is recorded in proprietary funds that have received capital grants or contributions from developers, customers or other funds. Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources F Revenues 9 Expenditures remaining debt and Expenses GENERAL Hartman & Associates, Inc. (HAl) is pleased to present herein our feasibility report with regard to the issuance of Bond Anticipation Notes (BANs) in the par amount of $8,060,000 by the City of Clermont (the "City") for improvements to the water and wastewater system (collectively detìned as the "System"). HAl has been retained by the City to prepare projections of the operating results of the System for the five years beginning October 1, 1996, and ending September 30, 2000 Mr. Saunders Dear debt other Feasibility Report Water and Wastewater Bond Anticipation Notes 8 7 leave in vacation on proprietary fund assets acquired with tax- of interest to be capitalized is calculated by from the date of the borrowing interest earned on invested Subject Mr. Wayne Saunders City Manager City of Clermont P.O, Box 120219 Clermont, Florida 34712-0219 February 26 996 capitalized The HAl 're #95-338,00 CITY OF C~~ONT, FLORIDA NOTES TO THE FINANCIAL STATL~~S rk. -\ fLdd R\ r' if !H'-.r'Jpl1er 1)[11\(' 1-'( p "(,)[1 m, ,¡h\ L-\jt:" "'ê'r pI ]JI) P Ì: ~l U 11. i-'!::: 1. ( \1 ~ lees P ~ Il!h P F ";I-;ê' ¡.J\¡ j \1 K \ " 1-'1::. engineers, hydro geologists. surveyors & management consultants HJ--\RTi\1AN ~~ l.. ASSOCI.c-\TES , I~C \ . . CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS collected and remitted by the county tax collector. accrue its portion of county held tax sale such amounts are neither measurable nor available Property taxes The City does certificates because at balance sheet date are not the City are which may be assessed by rates The statutory maximum tax as follows mills 10 10% 7% Ad valorem millage Utili ty tax (Electric, gas, telephone) (Telecommunications) Total Columns on the Combined Statements-Overview Total Combined Statements-Overview are captioned Memorandum Only to they are presented only to facilitate financial analysis. Data columns do not present financial position, results of operations, or changes in 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 columns on the indicate that in these G e e [This page intentIOnallY left blankl Compliance and Accountability Stewardship 2 Budget Revisions A Final Budget The following schedule summarizes budget revisions by Fund Original Budget 2,660,013 1,578,072 220.921 $ Revisions $ 106,959 213,498 37.290 $ 2,553,054 1,364,574 183.631 General Fund Enterprise Funds Utility Fund Stormwater Fund Reconciliation sources over (budge tary other uses and other BudgetjGAAP revenues and General Excess expenditures basis Fund of B 570 20 $ Adjustments To reduce 250 157,250 570 20 157 $ for administrative service reduce expenditures trative service fees Excess of revenues and other sources over expenditures and other uses (GAAP basis) adminis- for revenues fees To The Florida Security for Depositors Act identifies that have deposited the required collateral in the State of Florida as qualified public depositories. its with qualified public depositories. Therefore, entirely insured by FDIC or Florida's Multiple Financial Pool those name The of treasurer City only places all City deposits Institution Collateral financial the institutions of the depos- are DEPOSITS 3 Deposits and Variance-favorable (unfavorable) Investments $ 40 527 $ (64.107) $ 632 $ 12.490 Actual Budget 546,552 587.079 718,300 654.193 573,462 574.094 208,431 220.921 (Budget Basis) Add Capital additions Principal payments 36,119 37.500 147,095 87.500 Less Depreciation 10.657 107.720 (116.850) (157.875) Actual (GAAP Basis) $ 589.783 Utili ty Fund Yater Sewer $ 641.580 $ Sanitation Fund 562.805 $ Stormwater Fund 100 711 APPENDIX D FEASIBILITY REPORT OF HARTMAN & ASSOCIATES Comparison of budgeted and actual (budget basis) expenses at the legal level of control for the Enterprise Funds is presented as follows D Enterprise Funds Budget Comparisons Deficiency of revenues over expenditures (GAAP basis) and other financing sources and other financing uses $ 80.943 Adjustments To record financing financing deficiency sources over uses for revenues expenditures unbudgeted Impact Fee and other and other (5 175) Deficiency of revenues over expenditures (budgetary basis) of and other and other financing sources financing uses $ 86 .118 C Special Revenue Funds BudgetjGAAP Reconciliation CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS ',' the and 393 $439 was . At year end, the carrying amount of the City's deposits bank balances were $605.404 Cash on hand was $730 OF CLERMONT, FLORIDA FINANCIAL STATEMENTS . CITY NOTES TO THE INVESTMENTS The City's investments are categorized below to give an indication of the level of risk assumed by the entity at year-end. Category 1 includes investments that are insured or registered, or securities held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments held by the counterparty's agent in the City's name. Category 3 includes uninsured and unregistered investments held by a counterparty but not in the City's name authorize investment in U.S Federal National Mortgage State statutes and the City's investment policies Government Obligations, Federal Farm Credit Banks Association Obligations and Repurchase Agreements Market Value Carrying Value e e [This page intentionally left blank] 405,847 1,020',721 3,163,397 2.380,065 85.669 $ 000 721 397 065 669 , , , 405 1,020 3,163 2.380 85 $ fund pool Risk Category 3 Repurchase Agreement (Secured by USTN due 02/15/97 @ 4.75% held by bank in bank's name) Investment in U.S. Government Fund mutual Investment in state treasurer's investment Florida Municipal Pension Trust Fund Deferred Compensation Plan Total 055.699 loss of dec line recognized in 7 The City's investment in the mutual fund experienced an unrealized $43,587 in the General Fund and $42,967 in the Utility Fund. As this in market value was not due to a temporary condition, the loss is the current financial statements $ 852 054 7 $ Fund Mortgages Receivable During the 1992/93 year, the City rehabilitated twenty-six houses using Community Development Block Grant funds. A mortgage for the amount of rehabilitation costs was recorded for each house. Twenty percent of the mortgage is forgiven each year the homeowner continues to live in the home and properly maintains it. In each of the next four years the amount of mortgage receivable will be reduced along with a corresponding amount of deferred revenue. During the ended Septemoer 30 1994 $90,155 of the original mortgage amount was Community Development Block Grant year forgiven 4 General employees Police officers Volunteer firemen 62,972 459,607 28.754 $ Total City payroll for the year ended September 30, 1994 Covered payroll for each of the defined benefit plans was was $1.704 700 DEFINED BENEFIT PENSION PLANS The employees, officers, well as a contribution plan for administrative agent for these plans is Fund an agent multiple-employer Public City has three separate sworn police defined employer defined benefit plans for general and volunteer firefighters respectively, as general employees. The investment and the Florida Municipal Pension Trust Retirement System Employee single 7 Pension Funds Net $ 7.993 087 $ 8 097 431 Less Accumulated depreciation 3 686 059 325.746 4.011 805 Total Land Water system Sewer system Improvements Equipment Construction in progress other than building 11 927,606 3,513,827 6.382,100 855.613 679 146 $ 430.090 10,011 $ 86,318 137,488 29,950 103,952 62.371 $ 12.109 937,617 3,600,145 6.519,588 29,950 959,565 62.371 236 $ Balance 9/30/93 $ Transfers and Additions Transfers and Deletions $ Balance 9/30/94 Changes in Proprietary 6 Fund Fixed Assets Totals Land Buildings Improvements other than buildings Machinery and equipment $ Balance 09/30/93 $ Additions 5 A Changes $ 7.667.569 3,109,858 1,196.906 866,909 2.493.896 $ Deletions $ Balance 09/30/94 summary In General Fixed " $ 205.999 106,690 99.309 of changes in general fixed assets is Assets CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS $ 25 (25 as follows Repeal of lnconsmem ResolUUQns. All resoluuor.s or parts L'-'!ereü: In .:ontl:cr herewlth are hereby superseded and repealed to the extent of such con:11([ Sectlon 9.9 Table of Contents and Headin~s no! Part Hereof The Tabie (1~ Contents precedmg the body of !.his Resoiution a...ï.d the head1I1gs precechng t..l-¡e se\e~ 3I!lc~eS a.'1d secuons hereof shall be solely for convenience of reference and shall not const:.tute a par. c: trllS Resolunon or affect Its meanmg, construction or effect. Section 9.10 Effective Date, This ResolutIon shall take effect Jr.".med;ate¡~ üp<J:"'; ¡ lS adopuon PASSED, APPROVED ,'L'iD ADOPTED thJs nth day of FebrJ;L', 396 CITY COUNCIL OF THE CIn OF CLERMONT, FLORIDA Mayor ¡OFFICIAL SEAL) ATTEST City Clerk 50 657) 657) $ 7.847 . 911 3,216,548 1.270.558 866 2.493 909 896 . . CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STAT&~S Insured or such CredIt Faa provided no lower than the ratings asSlgned thereto by such ratIng agenCle! on the date such NoteS were insured or such Credit Facility was provided, the Issuer may enact one or more Supplemental Resolutions amending all or any pan of ArtJcles I, 4, 5, 6 and 7 hereof with the written consent of said Insurer or Insurers andlor said Credit Bank or Credit Banks, .. applicable, and the acknowledgment by said Insurer or Insurers andlor said Credit Bank or Credit Banks that its Note InSUI1l!lCC Policy or its Credit Facility, as the case may be, will remain in full force and effect, The consent of the Holders of any Notes shall not be n·ecessary. The foregoing right of amendment, however, does not apply to any amendment to Section 5.18 hereof with respect to the exclusion. if applicable, of interest on said Notes from the gross income of the Holders thereof for federal income tax purposes nor may any such amendment deprive the Holders of any Note of right to payment of the Notes from, and thw lien on, the Pledged Funds and any additional security pledged hereunder, Upon filing with the Clerk of evidence of such consent of the Insurer or Insurers and/or the CredIt Bank or Credit Banks as aforesaid, the Issuer may adopt such Supplemental Resolunon, After the adopuon by the Issuer of such Supplemental Resolution, notice thereof s.hal1 be mailed in the same manner as notice of an amendment under Section 8.2 hereof. of the ad_ any Supplemental Bank If at any time the Issuer shall determine that it is necessary or desirable to adopt any Supplemental Resolution pursuant to tlus Section 8.2, the Clerk shall cause: the RegJStrar to give notlce of the pro}XJsed adoption of such Supplemental ResolutJ.on and the form of consent to such adoption to be mailed, postage prepaid, to all Noteholders at thCl! addresses as thoy appear on the registraùon books and to all Insurers of, and Credit Banks providing a Credit Facility for, Notes Outstanding. Such notice shall briefly set forth the nature of the proposed Supplemental Resolutlon and shall state that copies thereof are on file at the offices of the Clerk a.'1d the RegIstrar for inspection by all Noreholders. The Issuer shall not, however, be subject to any llabliity to any Noteholder by reason of its failure to cause: the notlce requued by this SectIon 8.2 to be mailed and any such failure shall not affect the validity of suCh Supplemental Resaluuon when consented to and approved as provided in this Section 8.2. approval by Noteholders. the Insurer or the Credl Resolutwn as authorized In Seen on 8.1 hereof. 1994 30 at September defined benefit pension plans each of the Membership in was as follows \Vhenever the Issuer shall deliver to the Clerk an insttUmem or lOstruments In wnung purportIng to be executed by the Holders of not less than a majority in aggregate pnnclpal amount of the Notes then Outstanding, which instrument or instruments shall refer to the proposed Supplementai Resolution descnbed in such notJ.ce and shall specIfically consent to and approve the adopnon thereof In substantially the form of the copy thereof referred. to in such nouce. thereupon. but not otherwise, the Issuer may adopt such Supplemental Resolution in substaIlual1y such form. wnhout lIability or responsibility to any Holder of any Note, whether or not such Holder shall have consented thereto. Volunteer Firefighters Police Officers General Employees ARTICLE 9 2 o 2 o 1 16 16 1 2 o Retireesjbeneficiaries currently receiving benefits Vested terminated employees Active employees Fully vested Nonvested MISCELLANEOUS Section 9,] ~, If the Issuer shall payor cause to be paid or there shall otherwIse be paid to the Holders of all Notes the pnncipaJ or Redempuon Price, if applicable, and interest due or to be.com~ due thereon, at the times and in th~ manner stipulated therem and In thIS Resolution, then the pledge of the Pledged Funds and any addItional secunty pledged hereunder. and all covenants. agreements and other obligations of the Issuer to the Noteholders. shall thereupon cease, terminate and become void and be discharged and satisfied. In such event, the Paymg Agents shall pay over or deliver to the Issuer all money or secunnes held bv them pursuant to tlus Resolution which are not required for the payment or redemptlon of Notes not theretofore surrendered for such payment or redemption. If the Holders of not less than a maJonry In aggregate principal amount of the Notes Outstandmg at the urne at the adoptJ.on of such Supplemental ResolutIon shall have consented to and approved the adoption thereof as herein provided. no Holder of any Note shall have a..fJ.y right to object to the adoption of such Supplemental Resolution, or to object to any of the terms and provlslOns contamed therem or the operatlon thereof. or In any manner to question the propnety of the adoption thereof. or [0 enjoin or restrain the Issuer from adopung the same or from taking any actIon pursuant to the provisions thereof. o 23 actively employed 1985 who elected to general employees on September 30 Eligibility for Participation all permanent by the City participate General employees Any Notes or lOterest IOstallments appertaJ.ning thereto, whether at or pnor to the matunty or redempnon date of such Notes, shall be deemed to have been paid within the meaning of this Section 9.1 If (A) in case any such Notes are to be redeemed pnor to the maturity thereof, there shall have been taken all action necessary to call such Notes for redemption and notice of such redemption shall have been duly given or provisIOn shall have been made for the giving of such notice. and (B) there shall have been deposited in irrevocable truSt with a banking institution or trust company by or on behalf of the Issuer eIther moneys in an amount which shall be sufficient, or Securiues the pnnclpal of and the Interest on whIch when due will provide moneys which, together with the moneys, if any, deposited with such bank or trust company at the same time shall be sufficient, to pay the principal of or Redemptlon Pnce, if applicable. and interest due and to become due on said Notes on and pnor to the redempuon date or maturity date thereof, as the case may be. Neither the Securities nor any moneys so Upon the adopnon of any Supplemental Resolution pursuant to the provlSlons of this Secnon 8.2. this Resoluuon shall be deemed to be modified and amended in accordance therewith. and the respective rights, duties and obligaùons under this Resolution of the Issuer and all Holders of Notes then Outst4ndlng shall thereafter be detenmned, exerCISed and enforced in all respects under the provisions of this Resolution as so modified and amended Secuon 8,3 Amendmenl with Consent of Insurer and"or Credit Bank Only If all of the Notes Outstanding hereunder are lOSUred or secured as to payment of pnnclpal and lOlerest by an Insurer or Insurers and/or by a Credit Facility provided by a Credit Bank or Credit Banks. and the Insurer or Insurers and/or the Credit Bank or Credit Banks, as applicable, are nO! !O default, and the Notes. at the time of the herelOafter descnbed amendment. shall be rated by the raung agenc.es WhiCh shall have rated the Notes at the ume such Notes were actively employed sworn police officers all Police officers 46 employed volunteer firemen all actively Volunteer firefighters 47 Volunteer Firefighters 10 years service 10 years service $2.00 times years of creditable service 55 50 Age Age Police Officers 10 years service 2 monthly times years creditable service 10 years service of average earnings of 55 50 25% Age Age General Employees year years ice years service 5 MONTHLY BENEFITS 2% of highest 10 serv 10 60 Age 65 Age VESTING PARTIAL FULL and the delIvery Section 9,3 General Authomv, The members of the Govemmg Body and the Issuer's officers. attorneys and other agents and employees are hereby authonzed to do all acts and things required of them by thIS Resolution or desirable or consistent WIth the requirements hereof for the fuil. punctual and complete perfonnance of all of the terms, covenants and agreements contalned Iß the Notes and thIS Resolution, and they are hereby authonzed to execute and deliver all documents which shall be reqUIred by Bond Counselor the lOitial purchasers of the Notes to effectuate the sale of the Notes to said irutial purchasers. the City Manage by the execunon of the 15c2-12 Certificate by the Mayor or thereof to the Underwriter. deposIted WIth such bank or trust company nor any moneys receIved by such bank or trust company on account of pnnclpal of or Redemption Price, if applicable, or lnterest on saJd Securities shall be withdrawn or used for any purpose other than, and all such moneys shalJ be held in trust for and be applied to, the payment. when due, of the pnncipal of or Redemption Pnce, if applIcable, of the Notes for the payment or redemptlon of WhICh they were deposlled and the Interest accrulOg thereon to the date of maturity or redemptlon thereof: provided, ho~'ever. the Issuer may substitute new Secunnes ::"'1d moneys for the deposited Secuntles and moneys if the ne..... Securities and moneys are sufficient to pay the pnnclpal of or Redempnon Pnce, jf applicable, and mterest on such Notes. fully vested early retire- be the each month that shall salary of For all plans the partially vested monthly benefit amount reduced by 5/12th of 1% of said amount for ment precedes the normal retirement date average times years creditable service SectlOn 9,4 No Personal Liability. No representatlon, statement, covenant, warranry. stIpulation, obligation or agreement herein contamed. or contalned in the Notes, or 10 any certificate or other instrument to be executed on behalf of the Issuer in connection with the issuance of the Notes, shall be deemed to be a representation, statement, covenant. warranty, stipulatIon. oblIgation or agreement of any member of the Governing Body, officer. employee or agent of the Issuer in his or her individual capacity, and none of the foregoing persons nor any officer of the Issuer executing the Notes, or any ce:rtî.ficate or other instrument to be executed 10 connection with the issuance of the Notes, shall be liable personally thereon or be subject to any personalliabiliry or accountability by reason of the execution or delivery thereof. In the event the Notes for which moneys are to be deposIted for the payment thereof 10 accordance with this Section 9.1 are not by their terms subject to redemption within the next succeeding sixry (60) days, the Issuer shall cause the Registrar to mail a notice to the Holders of such Notes that the deposit required by this Section 9.1 of moneys or Secunties has been made and said Notes are deemed to be paid in accordance with the provIsIons of thlS Section 9.1 and stating such matunry or redemption date ulxm which moneys are to be available for the payment of the principal of or Redemption Price, if applicable, and 10terest on sald Notes Nothing herein shall be deemed [0 require th~ Issuer to calJ any of the Outstanding Notes for redemptJon pnor to matunt:y pursuant to any applicable optional redemptlon proviSIons. or to lmp3.1r the discretion of the Issuer m determ1ßlOg whether to exerCise any such oplJOn for early redemption. and provision Ordinance Benefi t and City Each defined benefit plan provides disability benefits all other requirements are established by Florida Statute SectJ.on 9.5 No Third Party Beneficiaries. Except such other Persons as may be expressly described herein or in the Notes, nothing in this Resolution, or in the Notes, expressed or Implied. IS intended or shall be construed to confer upon any Person other than the Issuer and the Holders any nght, remedy or claim. legal or equitable, under and by reason of this ResolutIon or any provIsIon hereof. or of the Notes, all provisIOns hereof and thereof belOg Intended to be and bemg for the sole and exclusive benefit of the Issuer and the Persons who shalJ from time to time be the Holders. In the event that the pnnclpal of or Redempuon Pnce, ¡f applicable, and mterest due on the Notes or any portion thereof shall be paid by an Insurer or Insurers or a Credit Bank 0; C;edit Banks. such Notes or any portion thereof shall remaln OutstandlOg, shall not be defeased and shall not be consIdered paid by the Issuer, and the pledge of the Pledged Funds a.'1d an y addJtlOnal secunty pledged hereunder. and all covenants, agreements and other obllgauons of the Issuer to the Noteholders shall contmue to exist and such Insurer or Insurers or such Credit Bank or CredH Banks shall be subrogated to the rights of such Noteholders. or Volunteer his or her Po lice refund the with to a her employment is entitled his or employee terminates the If an employee Fire Departments contribution Secuon 9,6 Sale of Notes. The Notes shall be ISSUed and sold at pubJ¡C or pnvate sale at one time or 10 Installments from time to tlme and at such price or pnces as shall be consIstent wIth the provIsions of the Act, the requirements of thIS Resolutlon and other applicable prov1slOns of jaw salary The Plans of their contributory to fund the annual contribute 1% Employee plan is remaining amount necessary of non- and volunteer firefighters plans The General contribute the actuarial valuations Police officers to their respective City is required to according to the Sectlon 9.7 Severability of Invalid Provlswns. If anyone or more of the covenants, agreements or proviSIons of this Resolution shall be held contrary to any e,-;press provlSlon of law or contrary to the policy of express law, though not expressly prohibited. or agaJnst 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 separabll" from the remaJßlOg covenants. agreements and provisions of this Resolution and shall 10 no wav affect the validity of any of the other covenants, agreements or provisions hereof or of the !\Zotes ISSUed hereunder. 49 Secrion 9,2 Approval of Preliminary Official Statement, The PrehmInar\ Official Statement, WIth such omissions, mse:rtions and variations as may be necessary and/or desirable and approved by the Mayor and the City Manager pnor to the release thereof, is hereby approved, and the Prehmmary Official Statement, as so modified, IS hereby authonzed to be delivered by the Issuer to the Underwriter for disttibutlon prior to the executIon and delivery of the purchase contract berween the Issuer and the UnderwTIter relaùng to the purchase of the Senes 1996 Notes; and the Mavor IS hereb....' authorized to deem the Preliminarv Official Statement, as so mooified, final as of its date on behalf of the Issuer for purposes of R'ule 15c:- 1: or the Securities and Exchange CommissIon (except for such omlSSlons permitted by sucn Rule 15c2-12), and to execute a certlficate to that effect to be debvered to the Underwnter (the "15c2·12 Certlficate"¡' The approval by the Mayor and the CIty Manager of the omISSIOns, lOseruons and variations of the Prelimmary Official Statement may be conclusively presumed 48 44 (D) To add to the covenants and agreements of the issue other covenants and a.greements thereafter to be observed by the Issuer or to or power herem reserved to or conferred upon the Issuer. In th1s Resolutlon urrenàer an~ nght An percent compounded annual and future assets ~otes under thereafter to (C) To add to the condiuons. limItatIons and restnctIons on the the provisions of thIS Resoluuon other condiuons, JimHallons ana be observed, ,uance 0 estnCl10ns The amount shown below as the "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits adjusted for the effects of projected salary increases estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status of the plans on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to the plans (a) The pension benefit obligation was computed as part of the actuarial performed for the plan year beginning October 1, 1993. Significant assumptions used in the valuation include SUPPLEMENTAL RESOLUTIONS SectIon 8.2 Su.pDiemenral Resolution With NotehoJders' , lnsurer's and Credit Bank's Cons~jjt. Subject to the rems and pmvlSlons contained in this. Section 8.: and SectJon 8.1 hereof, the Holder or Holders of not less than a majonty in aggregate pnncipal amOunt of the Notes then Outstanding shall have the right, froP.1 rime to orne, anythmg contained 10 this ResolutIon to the contrary notwithstanding, to consent to and approve the adoptlon of such Supplemental Resolution or Resolutions hereto as shaIJ be deemed necessar;.- or desIrable by the Issuer for the pUIpOse of supplementIng, modifying, altering, amending, addmg to or resclndmg. In any particular, any of the terms or provisions COntained 10 thIS Resolution: provIded, however. that if such modiflcauon or amendment will, by its terms, not take effect so long a.s any Notes of any speçified Senes or maturity remain Outstanding, the consenr of the Holders of such Nares shall not be required and sucb Notes shall not be deemed to be Outstandmg for the purpose of any calculation of Outstanding Notes under this Section 8.2. Any SupplementaJ Resolution which 15 adopted in accordance with the provisions of this Secùon 8.:: shall also reqUIre the written consent of the Insurer of. or any Credit Bank providing a Credi! FacllÜy for. an ~ Noees which are Outstanding at the Orne such Supplemental Resoiution shall ta.ke effect No Supplemental Resolution may be approved or adopted which shall permit or reqUlre fA) an exte:nslon of the matunty of the principal of or the payment of the mterest on any Note Issued hereunder, ffi) reduction in the principal amount of any Note or the Redemption Price or me rale of lnterest thereon, (C) the creaDon of a lien upon 01' pJedge of the Pledged Funds other than the Jien and pledge created by this Resolution whIch adverseiy affects any Noteholders, (D) a preference or pnomy of any Note or Notes over any other Note or Notes, or (E! a reducelOn In the aggregate pnnclpal amount of the Notes reqmred for conser,( (0 such SuppJemenw ResolutJOn. Nothmg herein contaIned, however. shal1 be construct! as makmg necessary the 45 8 return on the investment of present valuation actuarial (B) To grant to or confer upon the Notehalders any addiuonai rights, remedies, powers, authority or security that may lawfully be granted to or conferred upon the Notehalders. (A) To Cure any ambIguley or formal defect or OmJSSIOn or to correct any InconSistent provisions In thjs Reso]ution or to clarify any matters or quesuons ansmg hereunder. Sectlon 8.1 SUDolemental Reso!utIon Without Noteholders' Consent. The Jssuer. from (¡me (Q orne and at any nme, may adop! such SuppJementalResoluuons \1,-'1tho'Jt the consent of the NotehoJders (which Supplemental Resoluuon shall thereafter form a part hereof) for any of the following purposes: ARTICLE Secbon 7,7 Control by Insurer 01 Credit Bank, Upon the occurrence and continuance of an Event of Default, any Insurer or Credit Bank, if such Insurer or Credit Bank shall have honored all of its commitments under its Note Insurance Policy or its Credir Faciliry, as the case may be, shall be entitled to direct and conrrol the enforcement of all nghts and remedIes with re.spect to the Notes it shall insure or for which such Credit FacIlIt)' 1S provIded.. Except Supplemental Resoluuons described 1I1 subsections (E), (F) and (H) of thiS SectJOn 8.1. no Supplemental Resolution adopted pursuant to this Article 8 shall become effecuve unless approved by each Insurer: and the Issuer covenants and agrees to fUffilSh to each Insurer a.n executeO origma] transcript of the Issuer's proceedings with respect to the adoption OJ· each Supplemental Resolution. (2) If the pnnclpal of all the Notes shall have become due and payable. all such moneys shall be applied to the payment of the principai and mferest men due and unpaid upon the Notes, \!lith interese th~reon as aforesaid, without preference or priont:-· of principal over interest or of interest over principal, or of any installment of interest over any other installment of interest, or of any Note over any other Note. ratably, according to the amounts due respectively for principal and interest, to the Persons entitled thereto without any discrimination or preference. (H) To make any other change that, in the OpInIOn of Bond Counsel, wouJd not materially adversely affect the security for the Notes. In making such dererminatlon. Bond Counsel shall not take ineo consideration any Note Insurance Policy. The Police Officers' and Firefighters' plans use 'the individual level dollar cost method. Under this method, the actuarial present value of each increment of an individual's projected benefits is allocated on a level basis over the future earnings or service of the individual between the age at which such increment is first recognized and the exit age(s). The portion of this actuarial present value allocated to a valuation year is called the normal cost. Each individual's portion of the actuarial accrued liability should be determined on a consistent basis, usually as the retrospective accumulation of the individual's prior actuarial accrued liability and prior normal cost using the valuation actuarial assumptions THIRD: to the payment of the Redemption Price of any Notes redemption pursuane co the provisions of this ResolutIon amount of such interest due on such date, and chen to the payment of sucn pnncIpaJ. ratably according to the amount of such principal due on such date, to the Persons enutled thereto without any discrimination or preference: and called fOJ opuonal (G) (E) To specify and deternune at any tIme pnor to the first deliver)' of any Senes of Notes the matters and things referred to in Sections 2.1 or 2.2 hereof. and also ar!y other matters and things relative to such Notes whích are not contra!)' to or inconsiseent ~'ith this Resoluúon as theretofore in effect, or to am~nd, modify or rescmd any such authonzation specrrîc.ation or determination. (F) To authonze To change or Suboldina!e<J Indeb!e<Jness, modify the description of the ProJect. method used for the actuarial valuations of the General the individual spread gain method. Under this method, the value of each increment of an individual's projected benefits on a level basis over the future earnings or service of the between the age at which such increment is first recognized and the exit age(s). The portion of this actuarial present value allocated to a valuation year is called the normal cost. The actuarial value of assets is deemed to be assigned to individuals on a reasonable and consistent basis; for example, each individual's share may be the accumulation of his (her) prior normal costs and any prior actuarial allocated to the individual. Actuarial gains (losses) to individuals in proportion to the assigned actuarial reasonable and consistent basis. The individual equals the assigned portion of of assets, actuarial accrued actuarial value the or on any liability for of assets other an 42 43 The actuarial cost Employees' Plan was actuarial present is allocated individual value gains are (losses allocated Sectlon 7.3 Dmx:tJons to Trustee as to Remedial Proceedmgs, The Holders of a maJomy In principal amount of (he Notes then Outstandmg (or any lnsurer insunng. or an.\- CredI! Bank providmg a Credit Facility for, any then OutstaIJding Notes) have the nght, by an The Holder or Holders of Notes in an aggregate principal amount of not less than {'Wenty~five percent (25 %) of the Notes then Outstanding may by a duly executed certificate In wnung appoint a trustee for Holders of Notes issued pursuane to this Resolution with authority to represent such NorehoJders In any legal proceedings fOT the enforcement and protectIon of the nghIs of such Noteholders and such certificate shall be executed by such Noteholders or their du!y authorized attorneys or representatIves, and shall be fùed in the office of the Clerk, Notice of such appoIntment, together with evidence of the requisite signatures of the Hoiden. of not Jess than twenty-five percent (25 %) in aggregate principal amount of NOles Oumandmg and the trust Instrument under which the trustee shall have agreed to serve shall be filed with the issuer and the trustee and notice of appointment shall be given to all Holders of Notes In the same manner as notices of redemption are given hereunder. After the appomtment of the first trustee hereunder, no further trustees may be appolOced; however. me Holders of a ma]onry m aggregate pnncipol amount of alJ the Noles then OutstandIng may remove the trustee !nJtlal!} appomted and appoint a successor and subsequent successors at any time. SECOND: to the payment to the Persons entitled thereto of the unpaid pnnclpal of any of the Notes which shalJ have become due at mammy (other than !\Jotes caJled for redemption for the payment of which moneys are held pursuant to the provIsions of SectIon 9.l of this ResolutIon), in the order of their due dates, wllh ¡nIerest upon such Notes from the respecnve: dates upon which they became due, and, If the amount available shall not be sufficient to pay in full Notes due on any partIcular date, together with such Interest, then to the payment rust of such interest, rarably according to the FIRST: to the paymenr to the Persons entitled thereto of aJl lnsta.lJments of mterest then due, in the order of the maturity of such installments, and, If the amount available shall not be sufficient to pay in full any panicular installment, then to the payment ratably, according to the amounts due on such installment, to the Persons entitled thereto, ",,;thout any discrimination or preference: payable, a11 0) Unless the princlpal of uch moneys shall be applied: a11 the Notes hall have beçome due and applicable, (B) To the payment of the interest hen due 00 the Notes, as follows: and pnocipal or Re.dempuon Pnce, If The Florida Municipal participates, provided an 1 1993 for each of the Pension Trust Fund, in which the actuarial valuation for plan years 's three defined benefit plans City City of Clermont beginning October 5ecuon 7.2 ~, Any Holder of Notes issuro under the provIsions of ChIS Reso!uuon or any trustee or receiver acting for such NorehoJders may eIther at ja\.\. or In equity. by SUIt, acuon, mandamus or other proceedings in any coun of competent junsdlcuon, 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 (0 be performed by the Issuer or by any officer thereof (C) The Issuer shall default in the due and punctual performance of any other of the covenants, conditions, agreements and provisions comamed in the Notes or In thIS Resolution on the pan of the Issuer to be performed, and such d~fault shall contmue for a period of thmy (JO) days aftel written noUce of such default shaJJ bave been recelVed from any Insurer or the Holders of not less than twenty-five percent (25 %) of the aggregate pnnclpal amount of Notes Outstanding or any Credit Bank. Norwithstanding the foregoing, the Issuer shall nOt be deemed in default hereunder if such default can be cured within a reasonable penod of time and If tne Issuer In good faith mstItutes cur.wve action and diligently pursues such actIon until the defauJ¡ has been corrected. (A) To the payment of the reasonable and proper charges, expenses and labiJ1tlfS of che trustee or receiver, Regiscrar and Paying Agent hèreunder; and Sectlon 76 Apphcatlon Qf Moneys After Default. If an happen aJld shalJ not have been remedied, the lssuer or a trustee or receiver purpose shall apply all Pledged Funds as follows and in the foUowmg order: Section 7.5 Waiver of Default. No delay or omission of any Noteholder to exercIse a..'y nght or power accruing upon any default shall impair any such right or power or sr.a1! be construed to be a waiver of any such default, or an acquIescence !.herem; and ever: pCh\'er and remedy given by Section 7.2 of this Resolution to the Noteholders may be exerclsed ham time to tIme, and as often as may be deemed expedient. Even! of Default shalJ appotnled for the Funding Status and Progress Secuon 7.4 Remeches Cumulative. No remedy herem conferred upon or res.erved to the Noteholders is Intended to be exclusive of any other remedy or remedies, a.r¡d each and every such remedy shall be cumulative, and shall be in addItlOn Co every other remed~ given hereunder or now or hereafter existmg at law or in equity or by statute. CITY NOTES TO OF ...LERMONT, FLORIDA THE FINANCIAL STATEMENTS ,.. (B) There shall occur the dissolution or liquÜ:~. of the Issuer. or the filing by the Issuer of a voluntary petItIon III bankruptcy, or the commIssion by the Issuer of any act of ba.n.kruptcy, or adjudication of the Issuer as a bankrupt, or assIgnment by the Issuer for the benefit of its creditors, or appointment of a receiver for the Issuer, or the entry by the Issuer inro an agreement of composition with its creditors, or the approval by a court of competent jurisdictlon of a petition applicable to the Issuer in any proceeding for lis reorganizabon inStINted under the provisions of the Federal Bankruptcy Act, as amended, or under any similar àct in any jurisdiction which may now be ìrt effect or hereafter enaceed. inStrument or concUì lnsm¡ments In \l.TItmg executed and delivered to the trustee. to direct th~ meUlod and place of conductJ.ng alJ remedial proceedmgs to be taken by U1e (ms:ee hereunder, prov:ided that such dIreCbon shall not be otherwise than in accordance With law or the provIsions hereof, and that the trustee shall have the right to decline to foilo\\, any suÒ direcnon which in the opinion of the trustee would be unjustly prejudicial to Holders of Notes not partIes to such direction. /' . . CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS faciliues of the system- n which lot a building shall subsequently be constructed for res:denual. commercIal E'trial use. to connect such building to such water facilities, and (B J eve!)' owner of each lot in the Issuer which abuts upon any street or public way cor:.ta.mmg a sewer line forming a part of the sewer facilities of the System and upon which lot a building shall subsequently be constructed for residential. commercial or industrial use. to connect such buildIng to such sewer facilities and to cease to use any other method for the disposal of sewage waste or other pollutlI1g matter. System which IS no longer necessary or useful In the ope....eon of "em and the proceeds denved from lhe sale of such land shall be dlSfXJsed of m accordan~ the provISIOns of the founh paragraph of thIS Secuon 5.8. The Issuer may make contracts or grant licenses for the operauon of, or gíaJ1t easements or other nghts wit..h respect to, any part of the System if such contract, license. easement or right does not, in the opinion of the Consulting Engineers. as evidenced by a ceruficate to that effect filed with the Issuer, impede or restrict the operation by the Issuer of the System. but any payments to the Issuer under or in connection with any such contract. !Icense. easement or nght in respect of the System or any part thereof shall constitute Gross Re\enue Section 5.13 Enforcement of Charees. The Issuer shall compel the prompt pavment of Rates forseJ"\/Ice rendered on every lot or parcel connected with the System. and to ¡hat end wIl] vigorously enforce all of the provisions of any ordinance or resolutlon at the Issuer having to do wIth conno.:tions to the faciliues of the System and charges therefor, and alJ oi the nghts and remedies permitted the Issuer under law. including the reqUirement for the maJung of a reasonable deposlt by each user, and the reqwrement for disconnection of all premIses dehnquent In the payment. and the securing of injunction against the dlSposlUon of sewage or JOdusmal waste into the sewer facilities of the System by any premises delinquent in the payment of such charges. Section 5.9 ~. The Issuer will carry such msurance as IS ordmanly carned by pnvate or pubhc corporauons owning and operating utilitles slmI1ar to the System wIth a reputable msurance camer or earners, Including public and product liability Insurance In such amounts as the Issuer shall deterrrune to be sufficient and such other insurance aga.¡nst loss or damage by fire. explosIOn (includmg underground explOSIOn), hurricane. tornado or other hazards and nsks. and said propeny loss or damage insurance shall at all times be In an amount or amounts equal to the fair appraisal value of the buildings, properties. furnirure. fixtures and equipment of the System, or such other amount or amounts as the Consulting Engineers shall approve as sufficIent. due to increases Projected salary (b) Merit 2% 3% 4% Inflation 2% 2% 2% after retirement General employees Police officers Firefighters No increase in benefits Secuon 5,14 Co!leceon of Impact Fees, The Issuer shall proceed dilIgently to perform legally and effectively all steps required in the imposition and collection of the Impact Fees. Upon the due date of any such Impact Fees, the Issuer shall diligently proceed to coHeet the same and shall exercise all legally available remedIes to enforce such collecuons now or hereafter availabJe under State law. SectJon 5. 15 ConsuJtJne En£~meers. The Issuer shall employ Consultmg Engmeers from tJme to time whenever necessary for compliance with the provisions of this Resolution, whose duúes shall be to make any certificates and perform any other acts reqUIred or permmed oÎ the Consulting Engineers under this Resolution, and also to review the construction and operatJon of the System The Issuer may establish certaln mInImUm levels of in_surance for which the Issuer may self·msure. Such mmimum levels of Insurance shall be in amounts as recommended In wn-tJng by an Insurance consultant who has a favorable reputatlon and expenence and is qualified 10 survey nsks and to recommend Insurance coverage for Persons engaged m operauons simIlar [0 the System. (c) Total Volunteer Firefighters 789.777 $ 6.249 $ $ 287.504 496.024 $ Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits Current employees Accumulated employee contri- butions Police Officers Secuon 5.16 Levy of Ex.cise Taxes. The Issuer shall not repeal the ordmances now !n effect levymg the ExcIse Taxes and will not amend or modify said ordinances Iß any manner so as to Impa.¡r or adversely affect the power and obl1gauon of the Issuer to levy and collect the ExcIse Taxes or Impa.¡r or adversely affect In any manner the pledge of the ExcIse Taxes made herem or the nghts of the Noteholders. The Issuer shall be unconditJOnally and Irrevocably obligated. so long as any of the Notes or the interest thereon are outstandmg and unpaid, to levy and collect the Excise Taxes at such rates, not exceedmg the max¡mum rares permitted by law, as shall be necessary to provide funds which, together with the poI1lOn of the Gross Revenues and the portion of the Impact Fees available for payment of the Notes. shaJJ be sufficient to pay, as the same shall become due, the pnncipal of and Interest on the Notes. Operaung Ex.penses and all other payments herein required. This provisIOn shall nor be construed to prevent reasonabJe revisIons of the rates of the ExCise Taxes as long as the proceeds of the Excise Taxes to be collected by the Issuer in each year thereafter. together with the portior. of the Gross Revenues and the portion of the Impact Fees available for payment of the SectIon 5.10 No Free ServIce. The Issuer will not render. or cause to be rendered. any free services of any nature by its System or any part thereof. nor wilì any preferentia.i rates be estabhshed for users of the same class. General Emplovees Pension Benefit Obligation Section 5.] 1 No lmpamnent The Issuer WIJ not enter Into any contract or contracts. nor take any acnon. the results of which might impair the nghts of the Holders and will nO! permit the operatlon of any compenng water or sewer service facHities In the Issuer: provIded. however, the Issuer reserves the nght to pennit the ownersh¡p and operauon of water or sewer service facilities or both by it.5elf or by others in any territory which is not in any SeT\'lCe area now or hereafter served by the System. 39 Section 5.12 Comoulsory Connections. In order better to secure the prompt payment of principal and interest on the Notes. as well as for the purpose of protectmg the health and welfare of the inhabitants of the Issuer, and acting under authority of the Act or other applicable laws of the State. the Issuer will requIre (A) every owner of each Jot In the Issue whIch abuts upon any street or publIc way contalnmg a water lme fomung a part of the wate 38 19.162 316 598 818 138 642 6,612 2.317 18.520 761 281 519 136 -0- 943 -0- 291 Employer financed-vested Employer financed-nonvested Total pension benefit obligation pnnclpal of and Interest on thIS ResolutIOn to be made ~o!es. wil! be sufficient to pay. as the same shall become due. the the Notes. Operaung Expenses and all other payments requIred by In such year. 1. 765.853 15.820 962.066 $ 963 787.967 $ 671 available for bene- cost which approxi- market Net assets fits at mates may be amended from ume to tlme in accordance WIth the terms thereof (the "Contlnumg Disclosure Certificate"). NO{\l,lthstanding any other provision of this Resolutlon. failure of the Issuer to comply WIth the Continuing Disclosure Certificate shall not be considered an Event of Default: however. any Noteholder or Beneficial Owner (as hereInafter defined) may take such aC!1OnS as may be necessary and appropnate, including seek1ng mandamus or specIfIC performance by couI1 order, to cause the Issuer to comply with its obligations under this Secuon 5. 19. For purposes of thiS Section 5.19, -Beneficial Owner" means any person which (a) has the power, directly or mdirectly. to vote or consent WIth respect to. or to dispose of ownership of, any Senes 1996 Notes (including persons holding Senes 1996 Notes through nominees. depositories or other intermediaries), or (b) is treated as the owner of any Series 1996 Notes for federal income tax purposes. Secuon 5.17 Covenants With Credit Banks and Insurers. The Issuer may make such covenants as it may in its sole discretlon determine to be appropriate WIth any Insurer. Credit Bank or other financial instirution that shall agree to insure or to provide for Notes of any one or more Senes credit or liquidity suppoI1 that shall enhance the secunty or the value of such Notes. Such covenants may be set forth m the applicable Supplemental Resolution and shall be bmdmg on the Issuer, the RegIstrar, the Paying Agent and all the Holders the same as If such :ovenants were set forth in ful1 in this Resolution. 896.009 $ 1 364 $ 261 332 313 ob in excess of obligation) Unfunded pension benefit ligation/ pension (assets benefit 6 ARTICLE Note Income Tax Covenants: TéiÃable Federa] 18 5 Scenon (A) The Issuer covenants with the Holders of each Senes of Notes (other than Taxable Notes). that It shaH not use the proceeds of such Senes of Notes 10 an~ manner which wOIJ1d cause the mterest on such Series of Notes to be or become mcludable to the gross Income o( the Holder thereof for federal Income tax purposes. 156) (130 $ $(245.544) (1. 266) $ $ 116.654 SUBORDINATED INDEBTEDNESS Secnon 6.1 No Additional Obli2"ations. The Issuer covenants and agrees that wh:1e the Notes shall rema.¡n Outstanding hereunder, the Issuer will not Issue any addiuonal obl1gatlons or Incur any addlUonalmdebtedness payable from the Pledged Funds or any portion thereof, except the Bonds. refundmg Notes or Subordinated Indebtedness as provIded 10 Secuon 6. ~ hereof. (B) The Issuer covenants With the Holders of each Senes of Notes (other than Ta.-xab!e Notes) that neither the Issuer nor any Person under its control or dlrectlon wjJJ make any use of the proceeds of suer, Senes of Notes (or amounts deemed to be proceeds under the Code) in any manner which would cause such Series of Notes to be "arbltrage notes" wlthm the meanmg oi Section 148 of the Code. and neither the Issuer nor any other Person shall do an:>' act or fail to do any act which would cause the interest on such Senes of Notes to become mduoable In the gross income of the Holder thereof for federal Income tax. purposes. Made The City of Clermont's funding policy is to for periodic employer contributions at actuarially determined amounts are designed to accumulate sufficient assets to pay benefits when due. The required contributions for the general employees' plan were determined using the individual spread gain method. Contributions to the plan were determined using the individual level dollar cost method. Unfunded actuarial accrued liabilities would be amortized a level period. The provide that Required And Contributions Contributions Section 6_~ SubordInated Indebtedness. The Issuer WIll not Issue any other obhgauons payable from the Pledged Funds or voluntarily create or cause to be created any debt. lIen. pledge. assignment. encumbrance or other charge havmg pnomy to or bemg on a panty wIth the hen thereon In favor of the Nares and the interest thereon. The Issuer may at any time or from tIme to ume issue evidences of indebtedness that are payable in whole or in par. out of Ihe Pledged Funds and which may be secured by a pledge of the Pledged Funds: pro\lded. however, that such pledge shall be. and shall be expressed to be. subordmated In all respects to the pJedge of the Pledged Fund~ created by this Resoluùon. The Issuer agrees to pa promptly any Subordinated Indebtedness as the same shall become due. (C) The Issuer hereby covenants with the Holders of each Senes of Note lother than Taxable Notes) that it will comply wIth all provisions of the Code necessary to maH1ta1n the excluSJOn of interest on such senes of Notes from the gross Income of the Holder thereof for federal income tax purposes. Includmg, in parucular. the payment of anv amount required to be rebated to the United Sl41tes TreasuT)' pursuant to the Code actuarial as those as of payroll over a thirty year assumptions used to compute contribution requirements were the same used to compute the pension benefit obligation standardized measure percent ARTICLE 7 DEFAULTS AND REMEDIES (D) The Issuer may. ¡flt so elects. Issue one or more Sene~ of Taxable !\iotes the Interest on which is \Or may be) mcludab]e ¡n the gross lOCO me of the Holcer thereof for federallOcome taxation purposes, so long as each Note of such Senes states In the body thereof ¡hat Interest payable thereon IS {or may be, subject to federallOcome taxatIon anc provIded that me Issuance thereof will not cause the mterest on any other Notes theretofo,e ISSUed hereunder to De or become lOciudable Ir. the gross mcome of the Holder thereof Îo: federal JOcome 14\ purpose an of. redemptlo folloWIng events shall each constitute the payment of the pnnCipal The of Defaul Default shall be made 10 on an;. ~ote ""her. aue Sectlon '7. 1 Even Event of Default" hereunder: A premium or JOtere Section 5.19 Contmume: DIsçlosun:. The Issuer agrees tha: I; w¡1l comply v. and carry out all of the provISIons 01 the Conunumg DIsclosure Cernfi.:ate executed by the hsuer and dated the date of issuance of the Series ]996 Notes. as ongmall\ executed and as. It 40 General 1993 1992 Employees 1994 85.20 101. 46 101.74 (185.25) 9.28 (11.83) 21 6 10 20 94 68 36 Section 5,7 Annual Audit. The Issuer shall. Immedlately after the dose of e.ad~ Fiscal Year, cause the books. records and accounts relanng to the System and the receipt of the EXCise Taxes to be properly audIted by a recognized independent firm of certlf¡ed public accountants. and shall require such accountants to complete theIT report of such Annual Audit !r. accordance wnh applIcable law. Such Annual Audlts shall contain. but not be Ì!mHed to. a balance sheet. an lOCO me statement. a statement of changes 10 rinanclal position. a statement of cnanges In retalned earmngs. a statement of the number and classlf¡ca.non of users and sef\lces of th~ System and rates associated wnh such services, a Statement of Insurance cQ\-'erage. and any other statements as reqUlred by law or accounung convenuon. and a certificate by suer! he authonty The transfer of the System as a whole from the control of the Governmg Body to some other board or authority which may hereafter be created for such purpose and which constitutes a governmental entity, interest on obligations issued by which IS excluded from gross Income of the holders thereof for federal income taJ; purposes under Secuon 103 of the Code. shaU not be deemed prohibited by this Section 5.8 and such successor board or au:homy shall fall w:thm the definnion of "Issuer" m Secuon I I hereof 37 Notv.'ithstanding the foregoing pro\lS10nS of this Sectlon 5,8, the to sell for fan and reasonabìe conslderauon an~ ¡and comDnsmg ue a halì have part oì the Percentage of PBO funded by available assets payroll Unfunded as PBO a percentage of covered as a percentage of covered payroll Employer's contribution Secuon 5,6 Books and RecQrds, The Issuer shall keep books, records and accounts of the operauon of the System. and of Gross Revenues, EXClse Taxes. Operaung Expenses and Impact Fees. and the Holders of any Notes ûutstandmg or the duly authonzed ~epresentauves thereof shall have the right at all reasonable times to Inspect ail books, records and accounts of the Issuer relatmg, thereto. th trend .L...L Employer requirements gives an indi at ion of to pay benefits when due years ending September J .~rormation is presented in contributions were made "0, 1994, 1993, the Statistical in accordance Section report All with actuarially determined in presented below Ten-year historical of this If. :n any Fiscal Year, the Issuer shall fall to comply wIth the requIrements contamed 10 thiS Secnon 5.5 above, It shall cause the Consulung Engmeers to review as Rates. Gross Revenues. Operating Expenses and methods of operation and to make VIo'Ti.tten ecommendations as to the methods by which the Issuer may promptly seek to comply with the equlrements set forth 10 Section 5.5 above. The Issuer shall forthVlo1.th commence to implement ouch recommendations to the extent required so as to cause it to thereafter comply with said ·equ:rements. pnor to any such sale, lease or other disposlDon of said property: (1) Jf the amount to be receIved therefor IS not in excess of one-half (l/2) of one percent (1 %) of the value of the gross plant of the System at origmal cost, an Authorized Issuer Officer shal! make a finding In wriung detennimng that one or more of the conditions for sale, lease or dISPOSIUOr. of property provided for m the second paragraph of this SectIon 5.8 have been met; or (2J If the amount to be received from such sale, lease or other disposition of said property shall be in excess of one-haJf (L'2) of one percent (l Cfc) of the value of the gross plant of the System a! ongma! cost. an Authonzed Issuer Officer and the Consulting Engineers shall each first make a fmdlOg m writing determlOing that one or more of the conditions fO!' sale. lease or other dJspos1tJOn (If property provIded for 10 the second paragraph of this Section 5.8 have been met. and the Governmg Body of the Issuer shall, by resolution. duly adopt. approve and concur 10 the flOdmg of an Authorized Issuer Officer and the Consulung Engmeers. Trend information sufficient assets the Trend Information the progress Information and 1992 made is accumulating for Total Contributions as a % of Covered Payroll Employer Employee 21. 20% 15 83% 59.84% Secuon 5.5 ~. The Issuer shall fix, establish, mamtam and collect such Rates and reVIse the same from Bme to time, whenever necessary, as wil1 always provlde m each Fiscal Year Net Revenues and EXCise Taxes, together wIth (i) moneys on deposlt 10 the Rate Stab1i.zation Fund and (ii) moneys on deposit in the Impact Fees Fund to the extent such moneys do not exceed the Impact Fees Debt Service Linùt, adequate at all times to pay in each Fiscal Year at least one hundred ¡v,.'enty five percent (125 %) of the pnncipal of and interest on the Pnor LIen Obl1gations becomIng due m such Flsc.al Year and all reserve, smklOg fund or other payments reqUIred by the Loan Agreement beconùng due in such Fiscal Year and at least one hundred percent (100%) of the current annuallOterest payments becommg due 10 such FlscaJ Year on the Notes, Such Rates shall nm be so reduced so as to t>e IOsufficlent to provide Net Revenues funy adequate for the purposes provided therefor by this Resoluuon The foregomg prOVJSIOn notwithstanding, the Issuer shall have and hereby reserves the nght to sell, lease or otherwise dispose of any of the property compnsmg a part of the System 10 the fOlJowlOg manner. if anyone of the following conditions exist (A) such property is not necessary for the operauon of the System, (B) such property is not useful in the operation of the System. (C) such property is not profitable in the operation of the System, or CD) in the case of a lease of such property, will be advantageous to the System and will not adversely affect the security for the Noteholders. The proceeds from such sale. lease or other disposiuon shalJ be deposned 1OtO the Revenue Fund. Section 5,8 No Momave or Sale of the System, The Issuer mevocablv covenants. binds and obligates itself not to sell, lease, encumber or in any manner dispose of the System as a wnole or any substantial part thereof (except as provided below) unt11 all of the Notes and all mterest thereon shall have been paid in full or prov1sion for payment has been !11ade m accordance with Secuon 9.1 hereof. Covered Payroll 21. 20% 14.83% 1.00% 58.84% 1. 00% The Issuer shall mall copies of such Annual Budgets and amended Annual Budgets and all resolutions authonzmg lOcreased expenditures for operanon and malntenance to all) Holder who shall file an address with the Clerk and request m wnung that copies of all such Annual Budgets and resolutions be furnished to such Holder and shall make available all such Annual Budgets and resolutions authorizmg mcreased expenditures for operation and maJOtenance of the System at all reasonable times to any Holder or to anyone acting for or on behalf of any Holder. The Issuer shall be pennitted to make a reasonable charge fot fumlshmg to any Holder such Annual Budgets and resolutions. accountants d!sclosmg am' matenal default on the part of the Issuer of an.... co....enant o~ agreement herein. Each Annual Audit shall be m conforrmty wIth generally accepted accountJOg ~mnclples. A copy of each Annual Audit shall regularly be furnIshed to any Insurer. to an: Credit Bank and to any Holder who shall have furnished an address to the Clerk and requested in wntlng that the same be furnJShed to such Holder. The Issuer shall be pennmed to make a reasonable charge for furnIshing to any Holder such Annual AudIt. $ 62 972 $ 459.607 $ 28.754 Total $ 13.348 $ 72.775 $ 17 072 Employee 4 610 286 34 35 Subtotal Contributions Employer City State $ 13 . 348 13 " 348 $ 68.165 28,561 39.604 $ $ 16.786 16 786 ResolutJon Seenon 4.8 SeDarate Accounts. The moneys requued to be accounted for in each of the foregoing funds and accounts established herem may be deposJted In a sIngle barlk account. and runds allocated to the vanous funds and accounts established hereIn ma) be Invested 10 a common IOvestment pooL provided that adequate accounung records are maJnwnec to rerlce! and control the restncted allocauon of the moneys on deposit therem and suer. investments for the various purposes of such funds and accounts as herem provIded The desIgnauon and establIshment of the vanous funds and accounts 10 and by this hall not be construed to requlre the establishment 01 any completely IOdependen: Flsca) Year be approved If for any reason the Issuer shall not have adopted the Annual Budget before the first day of any Fiscal Year. other than the first Fiscal Year. the prehminary budget for such FIscal Year, if it be approved by the Consulting Engineers, shall be deemed to be In effec: for such Fiscal Year until the Annual Budget for such Fiscal Year shall be adopted: and jf the pre!Jrnmary budget shall not have been approved by the ConsultIng EngIneers. the Anrltla: Budget for the preceding FISCaJ Year shall be deemed to conunue I!1 efrect The Issuer may at any urne adopt an amended Annual Budget for the then but no such amended Annual Budget shall supersede any pnor budget unu] by the Consulung Engmeers as reasonable and necessaI)' uITer.· t sh3..l: Normal Cost a Dollar a % of As As Made Amount Covered Payroll 13 , 348 13 .3 72,517 16.2 AlIlDvestments shall be valued at cost. Nothmg contalned m th:s Reso!utJOn shall prevent any Authonzed Investments acqulIed as investments of or secunty for funds helo under thIs Resoluuon from bemg issued or held in book-entry form on the books of the Department of the Treasury of the Untted States. 184 1.0 $ $ $ Any and all Income receIved by the Issuer from the mvestment of moneys m L1e Revenue Fund. the Excise Taxes Fund, the Construction Fund. the Rebate Fund. the Note) Payment Account. the Rate StabIiizauon Fund and the Impact Fees Fund shaiì be retameG In Li espect!\ e fund or account ;ection 5.4 Annual Bud2.et. The Issuer shall annually prepare and adopt. pnor to the beginning of each FIScal Year, an Annual Budget ill accordance with appiJcable Jaw. So expenditure for the operation and maintenance of the System shal] be made in any Fiscal Year In excess of the amount pro....lded therefor In the Annual Budget (A) without a wmter. findmg and :-ecommendatlon by an Authonzed Issuer OftÏcer, which finding and recommendatIon shal~ state to dew! the purpose or Jc1d necess1ty for such JOcrea.sed expenditures. and (B) uno] the Go....emmg Body shall have appro....ed such finding and recommendatJon by resolutIOn Actuarially Determined Employer Contribution Requirement General Emplovees Police Officers Volunteer Firefighters SecBon 4. 7 ~. Each fund and account established hereDY shall be contlnuousiy secured in the manner by whlch the deposit of public funds are auL10nzed to be secured by the laws of the State. Moneys on deposit in each fund and account may be Invested and relOvested In Authorized Investments maturing not later than the date on which the moneys therem will be needed Secnon 5.3 Operatlon and Maintenance. The Issuer will maJ.ntaln or cause to be mamtawed the System and all ~ft1ons thereof in good condition and will operate or cause to be operated the same 10 an efficient and economical manner, makmg or causing to be made such expendItures for equIpment and tor renewals. repaIIs and replacements as may be proper for the economIcal operation and maJntenance thereof. During the year ended September 30, 1994, contributions were made in accordance with contribution requirements by actuarial valuations of each of the plans as of October 1 1993 The provlsIons of the above-described arbitrage ceruficate and instrucuons of Bone Counsel may be amended from urne to time as shall be necessary. ¡n the opmlOn of Bond CounseL to comply WIth the provlSlons of the Code. Secuon 5,2 Sale of Bonds or Refundin. Notes, The Issuer shall In good fanh endeavor to sell a sufficient pnncipal amount of the Bonds or of an additional senes of Notes in order to have funds aVaJlable to pay each Senes of Outstanding NoteS and the Interest thereon or, me matunty date thereof CITY OF CLER110NT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS (D) keeplOg such records of the deterrrunanons made pursuant to thIS Secuon ~,6 as shaìl be required by the Code, as well as evidence of the fau market value of any Investments purchased with proceeds of the Notes. (C¡ paymg 0:1 the dates and In the manner required by the Code to the l'mted States Treasury from the Rebate Fund and any other legally available moneys of the issuer suCh amounts as shall be required by the Code to be rebated to the United States Treasury: and Secuon 5.1 ~. In addluon to all of the other covenants of the Issuer .:o~talOed in thIS Resolutlon. the Issuer hereby covenants WIth each and every successIve Ho)der o~- all;' c.'f !;¡e Notes so long as an~ of the NOles shall remaln Outstandtng each and eve;:. c of the covenants contaIned 10 thIS Article 5. COVE." ANTS (B) deposItIng from moneys I.D the Revenue Fund or from oL'ïer moneys of the uer denved from sources other than ad valorem taXation and legally available for such purpose the amount determined in subsection 4.6(A) above into the Rebate Fund: reqUlred (A) mak10g a detemunation to be depoSIted 11l the Rebate Fund; Il1 accordance Ie Code of he ARTICLE selt.balancmg funds .:h term IS commonly defined and used 10 govemmen:a.; accountJng. b'J, rather IS mtended solely to constitute an earmarlring of certain revenues for certaln purposes and to establish cert:aUI priorities for application of such revenues as herem proVIded. r . . CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS required deposItS shall bee,onthlY, the balance of any and all Net Revenues on depoSIt In the "Revenue Fund" created and established by the Loan Agreement for the benefit of the Loa.r¡ WhICh shall be in excess of the mmimum requirements for compliance with the covenants. requIrements and provisIons of the Loan Agreement and the FIrst SuppiementaJ Loan Agreement shall fonnwnh. and not iess frequently than monthly, be deposlloo mto the Revenue Fund creJ.ted by this ResolutIon \\'nenever the covenants, reqUJ.rements and provislOns of the Loan Agreement and the Firs! SupplememaJ Loan Agreement shall no longer require deposIt of Net Re\enues for the payment of the Pnor LIen Obliganons, the Issuer shall deposIt all Gross Re\enues lOto the Revenue Fund. promptly upon the receIpt thereof. On or beÎore the last day of each month. commencmg with the month in which delivery of the Series 199.6 Notes shall be made to the purchasers thereof. the moneys ìn the Revenue Fund shall be deposited or credited in the foUov.'mg manner and in the following order of pnoriry: NmwlthSL1ndmg an.... of the other provISIons 01 this seca, to the extent tha~ ot~er moneys are not avaHable therefor, amounts m the conslructlOn'shall be applied to ne pa\'mem of pnnclpaJ of or Redempuon Pnce, If applicable. and mterest on Notes when due The date of completIon of the Project shall be detenmned by the Authonzed Issue Of;-Icer v.ho shall cemfy such fact 10 wnung to the Governing Body. Promptly after the date 0:- the completIon of the Project. and after paymg or making provISIons for the payment of all 'JnpaJð \tems oi the Cost of the Project, the Issuer shall deposit any balance of moneys remau:mg iT¡ the ConstructIon Fund 1Il such other fund or account of the Issuer, ìncluding those establJshed ~,eeunder. as shall be determined by tile Governing Body, provided the Issuer has recel\'ed ar, of Bond Counsel to the effect that such transfer shall not adversely affect the excluslOn. any. of IntereS! on the Notes from gross income for federal income ~ purpose Employer·s contribution as a percentage of covered payroll Unfunded PBO as a percentage of covered payroll Percentage of PBO funded by assets (1) OperatIon and M'I.1T1tel'lance. Amounts m the Revenue Fund shall De used first to pay reasonable and necessary Operating Expenses for the next ensuing month: provIded, however, that no such payment shall be made if such payment of Operating Expenses shall have been provided for pursuant to the provlsions of the Loan Agreement or shall be made unless the provisions of Section 5.4 hereof In regard to the current Annual Budget are complied \Vith. Section 4.4 f I,lnd~ and Accounts. The lssuer covenants and agrees to establlsh more Authonzed DeposHones the folloWU\g separate funds and accounts: System Revenue Fund and Sewe Wate A one or " available Accoul1 Pay men Fund. Revenue Bond Anuclpaoon Note Taxe a11d Sewe EXCIse Wate (B) (C) 14.83 14.91 30.18 (.28) (14.59) (12.18) 100. 13 107.12 107,38 Police Officers 1994 1993 1992 Notes Payment Account. Next, the Issuer shall deposIt Into or Payment Account such sums as are described in SectIon 4.5(D) 58.38 53.17 58.50 (853.95) 249.23) 086.34) (1 (1 652.11 611.18 889.19 1 1 Volunteer Firefighters 1994 1993 1992 (3) Rate SæbillzatJon Fund. The balance of any moneys remaJmng In the Revenue Fund after the payments and deposits required by parts 0) and (:2) of this ~ubsectìon 4,5i;'\) shal] be deposited lOW or credited to the Rate StabilIzation Fund. The mone~'s on deposit in the Rate StabilIZatIon Fund may be transferred. at the dJscretion of the Issuer. to any other appropnate fund or account of the Issuer and be used by the Issuer for any lawful purpose, including, but not limited to. the payment of the principal of or Redemptlon Pnce, if applicable, and interest on the Notes or any Subordinated Indebtedness hereafter issued by the Issuer; provided, however. that on or prior to each principal and interest payment date for the Notes (in no event earlier than the fifteenth day of the month next preceding such payment date). moneys In the Rate StabiilzatJon Fund shall be deposited into the Notes Payment Account ,,"'hen the moneys therein are or are expected to be insufficIent to pay the princIpal of and mterest on the Notes commg due, (2) eredll to the Note hereof. Fees Fund System Rate Stabilu.auon Fund System Impac and Sewe ana Sewe Wate Wate ID) EJ shall The Issuer shall at any ume and from ume to tIme aplxJlnt one or more u¡honzed Depositones to hold. for the benefi.! of the Issuer and/or the Noteholders. an:- one O. more of tne funds and aCCüunts estabhshed hereby. Sucn deposllory or deposuanes sr,aL pedœ"ffi a¡ the dlrectIOn of the Issuer the duties of the Issuer 10 deposltmg. transiemng and disbursing moneys to and from each of such funds and accounts as herem set for....h. ana all records of such depositor)' In pertonmng such dunes shall be open at all reasonabie tlmö to :nspecuon by the Issuer and Its agents and employees, i Rebate F:.md as and account Bond Anticrpauon Note such other funds uer may establrsh by Supplemental Resoluuon necessary or advisable Revenue and Sewe Wate F) The deem the City of Article IV GL~ERAL EMPLOYEE DEFINED CONTRIBUTION PENSION PLAN Plan for General Employees of 1985. as defined in Chapter 16 Contribution Pension established October 1 The Clermont was of the Clermont Code defined (B) Impact Fees The Issuer shall deposit mto the Impact Fees Fund aJi Avallable Impact Fees, promptly upon receipt thereof. The moneys m the Impact Fees Fund (I) may, to the extent such moneys may be lawfully used for such purpose, be applied at the discretIOn of the Issuer (1) for deposit Into the Notes Payment Account whenever the money F!o.... of Funds. (A) Revenues, Whenever, from tIme to tIme. at any tIme the Net Revenues sh21: appìled sufficIentlY for mrmmum compliance with the covenant,:>, requm:ment~ a.nd of the Loan -\greemer:t arid tile FIrst Supplemenra.; Loan Agree;¡¡ent anc s SectIon 4.5 Deer. S!(ln na p of the City at ~nd all permanent employees plan ~ 1 191) in this after October to all permanent general elected participation the City on or available 1985, who hired by This Plan is September 30 general 30 The service of ten years employees Employees are fully vested in the Plan after following is the partial vesting schedule The Issuer shall also deposit lOto or credIt to the NOles Payment Account from lhe Pledged Funds and, to the extent necessary, from any other funds of the Issuer derived from sources other than ad valorem taxation, the sum required to pay the principal of and Redempuon Pnce. If applicable, on all Outstanding Notes on the maturity date or the redemptlon date thereof, as the ca.se may be. INTEREST 0% 50% 60% 70% 80% 90% 100% than five years 5 years 6 years 7 years 8 years 9 years 10 years VESTED SERVICE OF YEARS Less on depoSIt therein, after applying the Net Revenues in the manner provided 10 subsectIon 4.5(A), are Insuffrcient for the purposes set forth therein, (2) for the acquisition and construction of Expansion Facilities 2nd (3) for the purchase or redemption of Notes; and (ii) shall, to the extent moneys on deposIt in the Notes Payment Account are or are expected to be Insufficient to paj the pnncIpal of and mte:rest on the Notes coming due on any pnncIpal and Interest payment date for L1e Notes, be deposlted lIlto the Notes Payment Account on or pnor to such pnnclpal and ¡nteres! payment datt (but In no event earlier than the 15th day of the month next preceding such pà~'ment date): provided. however. that the aggregate amount of AV3.llable Impact Fees appl1ed b:- ,he Issuer pursuant to clauses (iHI) and (iî) to pay the pnncipal of. RedemptIon Pnce, ¡f app!Jcabie, and uHerest on the Notes shall not exceed the Impact Fees Debt ServIce Limit; and pro\"!ded further. however, that the aggregate amount of Available Impact Fees applied by the Issuer pursuant to clause (i)(3) shall never exceed the aggregate Impact Fees Debt Service Components deœnruned for all Notes. Moneys on deposit to the credit of the Notes Payment Account shall be applied r. the manner provided herem solely for the payment of the principal of or Redemption price. I{ appJ¡cab!e. and interest on the Notes and shall not be available for any other purpose. Until such moneys shall have been applied to such purpose, there shall be a lien upon ail of the moneys of the Notes Payment ACCQunt ìn favor of the Holders of the Notes. Any funds remaining on deposit to the credit of the Notes Payment Account after the pnnClpal of, Redemption Price, if applicable, and intereSt on the Notes shall have been paid 10 íull shall be deposited in the Construction Fund or, if the Project shall have been completed and the ConstructIon Fund closed. in the sinkIng fund for the Bonds. whereupon the Notes P2\m:::n: ,\c..:oun: snall be closed (C) Exc1se Taxes. The Issuer shall deposit all ExCIse Taxes mto the Exc¡se Ta;;es Fund created by this ResolutIon, promptly upon receIpt thereof. On or before'the last day of e.ach month. commencmg with the month in which the delivery of the Series 1996 Notes shall be made to tile purchasers thereof. the moneys in the Excise Taxes Fund shall be deposited or credued 10 the i.ollowing manner and 10 the following order of pnority (E) Purchase or Redemption of Notes. The Issuer, In Its dISCretIon, may use moneys In the Notes Payment Account to purchase or redeem Outstandmg Notes. provided such purchase or redempuon does not adversely affect the Issuer's ability to pay the princlpal or mterest comIng due on the Notes not so purchased or redeemed. ,.,as 1994 30 September Employees the defined contribution pension plan at General in Membership as follows íF) DeposIt of Moneys with Pa)'1nç Açents, At least one (I) busIness dav pnor to the date established for payment of any princIpal of or RedemptIon Pnce, if applicable, N interest on the Notes, the Issuer shall withdraw from the Notes Payment Account sufficient moneys to pay such pnnclpal or Redempuon Pnce, If applicable. or Interest and deposit sucr, moneys WIth the Pay 109 Agent for the Notes to be paid. to (2) Surplus Monevs. The balance of any moneys remaIning 10 the Exc:se Taxes Fund after the payments and deposits required by subparagraph (lJ oí this subsectIon (C) may be transferred, at the discretIOn of the Issuer. to any other appropnate fund or account of the Issuer and be used by the Issuer for any lawful purpose. inc1udmg, but not I1mlted to, the payment of the pnnclpal of. Redemption Pnce, If applrcable, and :nterest on any Subordmated Indebtedness hereafter !ssued bv the Issuer ( Notes Payment Account. The Issuer shall deposIt into or credi Payment Account such sums as are described in Section 4.5(1) hereof. Note he o 5 and beneficiaries receiving benefits employees Retirees currently terminated Vested Active IG) ReImbursement of Credit Bani). In the case of Notes secured by a CredIt aCillty, amounts on deposlt iÎI any funds or accounts established for such Notes may be applIed as provIded In the applicable Supplemental Resolution to reimburse the Credit Bank for amounts drawn under such Credit Facility to pay the pnnclpa1 of or Redemptìon Price. if applicable. and Interest on such Notes or to pay the purchase price of any such Notes WhiCh are tendered by the Holders thereof for payment. 10 14 15 employees Fully vested Partially vested Nonvested SectIon 4.6 Rebate Fund. Amounts on depoSI[ In the Rebate Fund shall be held In ~Tust by the Issuer and used solely to make required rebates to the Umted States TreasuT} le'(cept to the extent the same may be L"âllsferred to lhe Revenue Fund) and the NotehoJders sha!1 have no nght to have the same applied for debt service on the Notes. The Issuer agrees :0 undertake all actIons required of Jt 10 ItS arbltI'ô,ge ceruficate relating to each Senes of Notes (o:her than Taxabie Notes). and other instructIons from Bond Counsel. delIvered 10 connection \~\¡h or sUbsequent to the Issuance of such Notes. induding. but not hmited to' 33 (0) Notes Payment Account. The Issuer shall deposit mto or credl! to the :-.Jotes Payment Account the proceeds of the Notes representIng accrued and capnal1zed rnlerest. The Issuer shall deposit mto or credl! to the Notes Payment Accoun! t.!-¡e sum WhICh. together with the balance In said account. shall equal the interest on all OutStanding Notes accrued arId unp3.!à and [Q accrue to the end of the then current calendar month ~assumlng that a year COnsiSts oí twelve (12) equal calendar months of thIrty (30) days each), Such depoSJ: shall be made b\ the Issuer (i) first, from moneys In the Revenue Fund. (ü) second, from moneys m the Rate Stabilrzation Fund, (iíi) thud, from moneys 10 the Impact Fees Fund to the extent provided 10 Section 4.5(B) hereof, and (iv) founh, from moneys Lß the Excise Taxes Fund, The Issuer shall adjust the amount of the deposit into the Notes Payment Account not later than the month Immediately preceding any Interest Date so as to provide sufficient moneys in the Notes Payment Ac,:ount to pay the mterest commg due on the Notes on such Interes... Date. 32 The Deferred stated by the at the city's Compensation Fund is classified as an agency fund market value which is represented by the contract third party administrator. The assets are value provided 28 Section 4,2 Security for Notes, The payment of the pnnclpal of or Redemption Pnce. If appl1cable, and interest on the NOles shall be secured forthwith equally and ratably b~ a lien on and pledge of the Pledged Funds; provided, however, a Series of Notes may be further secured by a Credit Facility or a Note Insurance Policy not applicable to anyone or more other Se:les of Notes. as shall be provided by Supplemental ResolutIon. in addition to the secunt~ provided hereto. The Issuer does hereby irrevocably pledge the Pledged Funds to the payment of the pnnclpal of or Redemption Pnee. if applicable, and interest on the Notes; provided. however. that as of any pamcular date the amount of moneys on deposit ¡n the Impact Fees The Pledged Funds shall be subject to the lien of thIS pledge Immediately upon the Issuance and delIvery of the Series 1996 NoteS, without any phYSical delIve~' oy the Issuer of the Pledged Funds or funher act, and the lien of this pledge shall be valid and binding as agaJ.nst all panies having claJms of any kind against the Issuer, 10 ton, contract or othervilse. It is the opinion of liability for losses would be required of that it is unlikely general creditors in the future an that the government under s legal counsel the plan but does have ordinary prudent investor it will use the assets to that the government has no of due care that The government believes satisfy the claims of the duty Seeuon 4.1 Notes not to be Indebtedness of Issuer. The Notes shall not be or .:onstllute general oblIgaùons or 10debtedness of the Issuer as "bonds" within the meaning of any constitutional or statutory provislOn, but shall be special obligations.of the Issuer, payable solely from and secured by a hen upon and pledge of the Pledged Funds in accordance with the terms of this Resoluuon. The Issuer may cause any Senes of Notes to be payable from and secured by a Credit Facillty or a Note Insurance Pobcy not applicable to anyone or more other Senes o~ !\Iotes. No Ho!der of any Note or any Credit Bank or any Insurer shall ever have the right to compel the exercise of the ad valorem taXing power of the Issuer to pa)' such Note or shall be enmlect to payment of such Note from any moneys of the Issuer except the Pledged Funds. In the manner provlded herein. The Issuer covenants that the acquisioon and construCDon of the Project will be completed without delay and in accordance with sound engineering pracùces. The Issuer shall make dIsbursements or payments from the Construction Fund to pay the Cost of the Project upon the ftling with the Clerk of documents and/or certificates signed by an Authorized Issuer OffIcer staling with respect to each disbursement or payment to be made: (1) the item number of the payment, (2) the name and address of the Person to whom payment is due, (3) the amount to be paid, (4) the purpose, by general classificaoon, for which payment is to be made. and (5) that (A) each obhgaoon, item of cost or expense menùoned therein has been properly Incurred. !s In payment of a part of the Cost of the Project and IS a proper charge agamst the account of the Construction Fund from which payment is to be made and has not been the basis of any previous disbursement or payment, or (B) each obligation, item of cost or expense mentioned therem has been paId by the Issuer. IS a reimbursement of a part of the Cost of the Project. IS a proper charge the Construction Fund, has not been theretofore reimbursed to the Issuer or otherv.'lse been the basis of MY previous disbursement or payment and the Issuer IS entitled to reimbursement thereof. The Clerk shall retain all such documents and/or certificates of the Authonzed Issuer Officers for seven (7) years from the dates of such documents andlor certificates, The Clerk shall make available the documents and/or certificates at all reasonable times for Inspection by any Noteholder or the agent or representative of any Noteholder. 29 The proceeds of msurance maintained pursuant to this Resoluuon agaInst physical loss of or damage to the Project, or of contractors' performance notes with respect thereto pertaining to the period of construction thereof, shall be deposited into the Construction Fund. The City accordance government future years compensation is not or unforeseeable emergency plan, all property and rights attributable to those amounts, property or available to the employee or other beneficiary) of the government subject only to the claims creditors. Participants' rights under the plan of the in an amount equal to creditor government deferred account for each participant purchased with amounts, and all income rights are (until paid or made solely the property and rights of the government's general equal to those of general fair market value of the are the SECURITY, SPECIAL FUNDS AND APPLICATION THEREOF There shall be paJ.d mto the Construction Fund the amounts requIred to be so paid by the pro\'lsìOns of thIS Resolunon or any Supplemental Resolution, and there may be paJ.d lOto the Constructton Fund. at the option of the Issuer, any moneys received ior or in connection wIth the Project by the Issuer from any other source. offers its a with Internal Code employees, permits them to Participation in available the to employees All amounts employees Revenue until of compensation those deferred compensation plan :reated Section 457. The plan, avai Lble to defer a portion of their _~ until plan is The optional termination, retirement, death deferred under the ~~lary deferred in all Secuon 3.5 Payment of Redeemed Notes. OfficIal nonce of redemptIon ha\'1Og been gwen substanually as aforesaid, the Notes or portions of Notes to be redeemed shall, on the redempuon date, become due and payable at the Redemption pnce therein specIfied, and from and after such date (unless the Issuer shall default in the payment of the Redempùon Price) such Notes or portions of Notes shall cease to bear interest. Upon surrender of such Notes for redempuon lo accordance w1th sald norice. such Notes shall be paid by the ReglStrar and..or Pay 109 Agent at the appropnate Redemption Price, plus accrued interest. Each check or other t:a.:1sfer of funds issued by the Reglstrar andlor Paying Agent for the purpose of the payment or the RedempUon Price of Notes being redeemed shall bear the CUSIP number Idennfymg. b~ Issue. the NOtes being redeemed with the proceeds of such check or other transfer. Inst.al.lmems 0:- Interest due on or prior to the redemption date shall be payable as herem provIded for payment of Interest. All Notes which have been redeemed shall be canceled by the Reg!strar and shal] not be reissued. ARTICLE 4 Section 4.3 Construction Fund. The Issuer covenants and agrees to establish a separate fund with an Authorized Depository to be known as the ·City of Clermont Water and Sewer Revenue and Refunding Bond Anticipation Notes Construction Fund, " which shall be used only for payment of the Cost of the Project. Moneys in the Construction Fund, unù] applied In payment of any item of the Cost of the Project in the manner hereinafter provided. shall be held 10 trust by the Issuer and shall be subject to a lien and charge ¡n favor of the Noteholders and for the further secunty of such Holders The lien on and pledge of the Net Revenues in favor of the Notes IS Jumor. subordinate and infenor in every respect to the pledge of and lien on the Net Revenues 10 favor or the Pnor Lien OblIgaùons. Fund which may be applied to pay the principal of or RedemptIon Price. ¡merest on the Notes shall not exceed the Impact Fees Debt Service Limit. If applicable, and 9 Deferred Compensation Retired employees insurance The cost dental City have the coverages of the premiums option of available is continuing the same to them while they were paid totally by the retirees type of health and employed with the 26 8 Post-retirement Benefits (3) If less than all outstanding Notes are [0 be redeemed, the number (and, In the case of a partIal redemption of any Note. the pnncipal amount) of each Note to be redeemed. The required (7%) of $36.768 contribution by the covered payroll less City for forfeitures FY of $36.392 (2) ) the RedemptIon Pnce, the redempuon date, Secnon 3.4 RedemptIon of Portions of Notes. Any Note which IS to be redeemed only in part shall be surrendered at any placc of payment specItïed in the notice of redempnon (with due endorsement by, or wnnen mstrument of transfer In form sansfactory :0 the RegIstrar duly executed by. the Holder thereof or such Holder's attorney duly authonzed !!1 wntJng) and the Issuer shalJ execute and the Registrar shal¡ authentlcate and deliver !e' ~he Holder of such Note, without seíVlce charge, a new Note or Notes, of the same Interest rate and matunty. and of any authonzed denomInatIon as requested b~ such HOlder. ¡f, an aggregate pnnclpal amount equal to and 10 exchange for the unredeemed portIon 01 the pnnclpaj oî lht Notes so surrendered '27 The City contributes an amount equal to No contribution is annually to seven percent required of emp 1994 was the pension account of each (7\) of the employee's annual loyees $70,487, or seven percent Actual contribution was active participant compensation Every officIal noùce Secuon 3,3 Notice of Redemption, Unless waived by any Holder of Notes to be redeemed. notIce of any redemption made pursuant to this sectlon shall be gIVen by the Reg!strar on behalf of the Issuer by maIling a copy of an officlaJ redemptIon nOtIce by first class mad, postage prepaid, at least thlfty (30) days and not more than sixty (60) days pnor to the date fixed for redempuon to each Holder of Notes to be redeemed at the address of such Holder shown on the regIstratIOn books mamtained by the Registrar or at such other address as shall be furnIshed m wnnng by such Holder to the Registrar: provided. however, that no defect 10 an) notlce given pursuant to this sectIon to any Holder of Notes to be redeemed nor failure to gIve such nOtice shall in any manner defeat the effectiveness of a call for redempuon as to all other HoJders of Notes to be redeemed. of redempuon shall be dated and shall state: ('2) Each funher notIce of redempnon shall be sent at least thlrty-tive (35) days before the redempuon date by registered or certifIed mail or overnight delivery service to an~ Insurer whlch shall have IOsured, or any Credit Bank which shall have provIded a Credit FacJ!lt\ for. any of the Notes beIng redeemed and to all registered secunties deposltones then In the busmess of holding substantial amounts of obligations of types similar to the type of which the Notes consist (such depositones now being Depository Trust Company of New York, ~e.... York, MIdwest Secur10es Trust Company of Chicago, IllinOIs, and Philadelphia Depositor;. Trust Company of PhiladelphIa. Pennsylvania) and to one or more national information services that dissemInate notIces of redempuon of obligauons such as the Notes Covered payroll for this Plan for roll was $1.704.700. FY 1994 was $1. 006 957 the City s total pay If less than all of the Outstanding Noœs are to be redeemed, the Registrar shall promptly notify the Issuer and Paying Agent (if the Registrar is not the Paying Agent for such Notes m wrinng of the Notes or portions of Notes selected for redemption and, in the case of any Note selected for partial redempùon, the principal amount thereof to be redeemed. (I) Each funher notice of redemption gIVen hereunder shall conta.ln the mfmmauon required above for an official notice of redemption plus (a) the CUSIP numbers of all Notes being redeemed; (b) the da.te of Issue of the Notes as originaliy ISSUed: (c) the rate of :nterest borne by each Note bemg redeemed: (d) the matunty date of each Note bemg redeemed: and (eJ an~ other descnptlve lnformanon needed to ldentJfy accuratcly the Notes bemg redeemed In a defined contribution plan, benefits solely on to the plan plus investments earnings ributions forfeited by, employees who terminate employment before five are used to reduce the City's current eriod contributions p depend Cont amounts cOl,tributed for, and . years of ~.n teres t service Secuon 3,2 Selecuon of NOles to be Redeemed, The Notes shall be redeemed only lD the pnnclpal amount of $5 ,(x)() each and integral multIples thereof. The Issuer shall. at least sixty (60) days prior to the redemption date (unless a shorter Orne period shall be satlsfacwry to the RegIstrar) noÙfy the RegisttaI of such redemption date and of the pnncIpal amount of Notes to be redeemed For purposes of any redemprion of less than all of the Outstanding Notes. the parucular Notes or portions of Notes to be redeemed shall be seiected not more than fony-five (45) days pnor to the redemption date by the RegIstrar from the Outstanding Notes designated by the Issuer by such method as the Registrar shall deem falr and appropnale and which may provide for the selection for redemption of Notes or pomons of ",otes In pnnclpal amounts of $5,000 and Integral multiples thereof. In addluon to the foregorng noncc, further nonce may be glven by the Issuer as set'out below. but no defect m said further notice nor any failure to give all or any poruon of such further notIce shall in any manner defeat the effectiveness of a call for redemption If notlce thereof IS gIven as above prescribed. Pnor to any redemption date, the Issuer shall depoSIt w1th the PaY10g Agent an amount of money sufficient to pay the Redemption Price of and accrued Interest on all the Notes or portIons of Notes which are to be redeemed on that date. CITY OF CLERMONT. FLORIDA NOTES TO THE FINANCIAL STATEMENTS (5) that such Notes to be redeemed. whether as a whole or surrendered for payment of the Redemption Price plus accrued interest at PaYIng Agent. redemption of Secc.on 3 all Notes I Privìle~e of Redemø;on, issued hereunder. The tenns REDEMPTION OF NOTES ARTICLE of thiS ArtJc1e hall apply to 10 parr. are to be the office of the r (4) th~ .ne redempc.on date the Redemption Pnce Wl]j become due and payable u¡xm each such Note or portIon thereof called for redemptIon. and that mterest thereon shall cease to accrue from and after saId date, and · - such registered holder -IVe such notice shall in any manner defeat the effectiveness of a call for redempnon as W other regis~ holders of Notes to be redeemed, Nouce of redempnon having been given as aforesaid, the Notes or portions of Notes to be redeemed shall. on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the Issuer shall default in the payment of the redempuon pnce) such Notes or porrions of N01CS shall cease to bear Ínterest. me Registered. Holder shall never have the nght to reqwre or com-exerCISe of any taxmg power of the Issuer, the State of Florida, or any political SUbdiviSi~reof, to [he payment of such pnnclpal, premIum, If any, and interest. This note and the obligatIOn eVidenced hereby shall not consntute a lien upon the System or any other property of the Issuer, except the Pledged Funds, and shall be payable solely from the Pledged Funds in accordance with the terms of the Resolution. CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS the City established an internal service fund to risk of loss for employee medical dental, and life Risk Management During fiscal year 1990, account for its uninsured coverage 10 This note IS and has all the qualiues and incidents of a negotJable instrument under the laws of the State of Flonda, but may be transferred only in accordance with the tenns of the Resoluuon only upon the books of the Issuer kept for that purpose at the office of the Registrar by the RegIStered Holder 10 person or by such Holder's attorney duly authonzed 10 wnung, upon the surrender of thIS note together with a written insttument of transfer satisfactory to the RegIstrar duly executed by the Registered Holder or such Holder's attorney duly authonzed In wriung, and thereupon a new Note or Notes in the same a¡gre¡atc principal amount shall be ISSUed to the transferee in exchange therefor, and upon the payment of the charges, if any, prescribed in the Resolunon, Each of the Notes is issuable in fully regis~ form in the denomInauon of $5,000 or any Integral multiple thereof not exceeding the aggregate pnncipal amount of the Notes, The Issuer, the RegIstrar and any Pa)'UIg Agent may treat the Reglstere<J Holder of thIS note: as the: absolute owner hereof for all purposes, whether or not this note shalJ be overdue, and shall not be affected by any notice to the contrcu"y. The Issuer and the Registrar shall not be obligated [0 make any exchange or transfer of any Notes during the fifteen (15) days nex::t preceding an interest payment date or, in the case of any proposed redemption of any Notes, dunng the fifteen (IS) days next preceding the redemption date established for such Notes The lien in favor of the holders of the Notes on the Net Revenues IS Jumor. subordinate and inferior in every respect to the lien thereon securing (i) the indebtedness and other obligations of the Issuer under and pursuant to that certain Loan Agreement. dated as of July I, 1993, among NationsBank of Florida, N,A" as trustee, the City of Arcadia, Florida, and the Issuer and (ii) the obligation to pay any amounts that may become due under and pursuant to Secuons 3!C), 4 or 5 of that certain First Supplemenla! Loan Agreement, dated as of July I, ! 993, between Sun Bank, National Association, as trustee, Lane Gilchrist, Mayor, City of Gulf Breeze, as administrator, and the Issuer (collectively, the -Prior Lien Obligations"). The Issuer In the Resolution has covenanted and agreed with the holders of the Notes tha't it will not hereafter Issue any additional obligations payable from the Pledged Funds or any pornon thereof havmg a lien superior to or on a paricy With the Notes. Neither the members of the Cicy Council of the Issuer nor any person execunng this note shall be liable personally hereon or be subject to any personalliablJity or accountability b~ reason of the issuance hereof per year 50% of for the first $30,000 each covered employee 35,001-40,000. The City purchases of coverage provided by the fund with coverage for program, the fund provides dental, or prescription claims 000-35,000; 25% of amounts insurance for claims in stop-loss of excess 000 Under this in medical claims 30 commercial a total It IS hereby ccrofied and recIted that all acts, condinons and things required to eXIst, to happen and to be performed precedent to and in connection with the Issuance of this note, eXIst, have happened and have been performed, in regular and due form and ume as requIred by the ConsUtutIon and laws of the State of Flonda applicable thereto, and that the Issuance of the notes does not violate any constitutIonal or statutory limitauons or provisIOn The Notes may be redeemed pnor to matuncy at the optIon of the Issuer, as a whole on or on any date thereafter, or in part, by lot. on , or on any interest payment date thereafter, at the following redemption pnces (expressed as a percentage of the pnncipal amount of the Notes to be redeemed) plus accrued Interest to the redemptIon date, if redeemed during the following penods: Redempuon Penod (both dates inclusive each for salary one and a half times commercial insurance $1. 000 value of covered with face is a aggregate Life insurance with participating employee LEGAL OPINION nnsen appropriate approving opuuon of bond counsel The above is a true copy of the opinion rendered by Foley & Lardner, Jacksonville, Florida, in connecUon with the issuance of, and dated as of the original dehvery of. the Notes of the issue of which this note is one. An executed copy of that opinion is on file In my office. % Notice of redempnon, unless WaIved, IS to be gIven by the Registrar b~ m31ling an official redempnon nonce by first class mall. postage prepaJd. at least 30 days and not more than 60 days prior to the date fixed for redemption to the registered holders of the Notes [0 be redeemed at such holders' addresses shown on the registratIon books mair.ta.med by the Registrar or at such other addresses as shaH be furnished in wrinng by such registered holders to the Registrar: provided. however, that no defect In any such notIce to any registered holder of Notes to be redeemed nor failure to give such nonce to any such regIstered holder nor fa¡Jure of any Re<Jemption Pnce through through and thereatte The general sanitation stormwater and utility funds participate in the program and make payments to the internal service fund based on the number of employees budgeted in each fund. At September 30, 1994, there were claims outstanding in the amount of $17,187 Claims paid during the fiscal year amounted to $200,557. No amount has been accrued for any unreported claims as information available does not indicate any probability of such claims CIty Clerk 23 22 Debt General Long-Term 11 The following abbreVIations, when used in the mscnpnon on the face of the wlthm note, shall be construed as though they were written out in full according to applicable laws or regulatIons: payable and bonds outstanding in notes changes 1994: is a summary of ended September 30 following the year The for transfe and ASSIGNMENT the undersIgned sells, assIgn FOR VALUE RECEIVED, unto as tenants in common tenants by the enti.retie TEN COM TEN ENT Note Payable Insert SOCial Secunty or Other IdenufYlng Number of Assignee as as jomt tenants WIth nght of sUTVlvorship and not JT TEN as tenants In common Total Bonds Bonds and note payable at October 1. 1993 Retirements Assignee) of (Name and Address (Cust, MIN ACT UNlF TRANS $1,768,562 (139.416) 53,562 (4.416) $ 1,715,000 (135.000) $ fo Custod1an appoint books kept fo constitute and lITevocably and does hereby he wlthm note 629.146 $1 49.146 $ $ 1.580.000 Bonds and Note Payable At September 30 1994 reglstIduon thereof note on the as attorneys to regIster the transfer of the said with fuil power of subsutution 10 the premises. Dated above (State) 1 In also be used though nOI of may Ac AdditIonal abbrevlauon to Mmo Uniform Transfe unde the following are comprised of 1994 30 September Bonds and notes payable at individual issues SIgnature Guaranteed KOTICE: Slgnature!s) must be guar.mteed by an tnstnuuon which IS a participant in the Secunues Transfer Agent Medallion Program (STAMP) or slm¡Jar program, 49.146 $ due 23, the dated May 23, 1980, each starting May annum secured by Bank, $4,417 per City of 1/2% the payable to NC~B ~ational 24 annual installments 1982, plus interest at 5 gasoline tax revenues of Note in NOTICE: The signature lo lhls assignment must correspond with the name of the Registered Holder as it appears upon the face of the within note In every parucular. WIthout alteration or enlargement or an ~ change whatever and the SOClðÌ Secunty or other Identifying number of such asSIgnee must be supplied ' 25 24 implemented GASB Statement 23 in refunding resulted in a difference carrying amount of the old debt of $345,987 in the accompanying financial statements as a deduction being charged to operations through the year 2015 using method. The City completed the advance refunding to service payments over the next years by $356,300 difference between the sent values of the of $148.000 gain payments 22 pre and old to and obtain an new debt CIty Clerk 20 Tt,e pnnc:pai at. premIum. :f any. and mterest on Üm note are pa:.:aO;è SUi::! rom ane secured by a ¡¡en upor: and a pledge of (J ¡ the proceeds to be aenveC D\ ¡De ¡SSuè "rem the saJè of the Bonds. (1) the proceeds to be denved b) L'Ie Issuer from the ~è 01 Done a.'1tJClpatJOn notö issued to extenè and renew the Indebtedness eVidenced b~ the ~otes tile Pleüged Revenues \as defined lf1 the Reso!uuon¡. ¡ncludlng the Ne! Revenues (as cc:ì!ìeü ¡~1 !;¡" Resolution) to be denved from the operauon of the Issuer's water and :>ewer sys:em (¡he;' "System"] and L1e EXCl5e Taxes (as deñned In the ResolutIon). and {¡vi unt:; app:ied accordance WIth Ù1e provlS1ons o~ the Resoìuuon. the proceeds of the NOles ane 3.1: moneys Indudmg Investments thereof. Ir1 certain of the funds and aexounts estabi1shed to :ht Resoiutlon. all in the man!1er and to the exte:1t desenbed in the Resolution the "Pleaged Funds"). It IS exprösly agreed by the Reglstered Holde:- of thIs note :ha: the ta..:th and ered;! of neither the Issuer. the Stare oì Flonda. nor any political subdl\lSl0n trterco(. !' plecged to the payment of the pnnctpal of or premlUm, If any, or interest on this note and tha On July 1, 1993, the City received a $3,905,000 loan from the City of Arcadia Dedicated Pool Local Government Revenue Bonds, Series 1993, with an interest rate of 5.48 percent to advance refund $1,055,000 of outstanding 1972 Series bonds with an interest rate of 6 percent and $2,080,000 of 1988 refunding bonds with interest rates ranging from 5.25 to 8 percent. The net proceeds of $3,480,987 (after payment of $424,013 in underwriting fees, insurance, issuance costs, and reserve allocation) were disbursed through an escrow deposit agreement and invested in defeasance obligations which will produce sufficient maturing principal and interest to timely pay the principal and interest of the outstanding obligations. As a result, both the 1972 and 1988 issues are considered to be defeased and the liability for these bonds has been removed from the City's financial statements The advance the net City accounting for be tween the the reduce ...J.ð,1... ~ ,~TTESTED AND COUNTERSIGNED' IN \\TITNESS WHEREOF, the City of Clermont, Flonda. has ISSUed thIS note and has caused the same to be executed by the manual or facsimile sIgnarure of its Mayor and attested and countersigned by the manual or facsimile slgnarure of its City Clerk and Its oftìc1a; seal or a facsImile thereof to be affixed or reproduced hereon. all as of the _ day or ,19_, SEAL) Bv Mayor CITY OF CLERJvlONT, FLORIDA ThlS note 1S one of an authonzed Issue of notes of the Issuer in the aggregate pr:nclpa.: amount of 5 (t.'le -Notes-) of like date, tenor and effect. excepl as to number [and denommations], issued [to finance me cost of the acquISltlOn, construction and InS¡a!!atlon of certam cap¡taltmprovements to the Issuer's mumclpal water and sewer system and the reiuncmg of certaln outstanding obhgatlons of the Issuer] (to extend and renew the ¡ndebtedness eVIdenced by the Senes ~ Notes] under tile authonty of and 1TI full comp:¡anœ ·...an the (onsUtutJon and laws of the State of Flonda, parucularly Chapter 166. Part II. Flond2 Statutes. as amended. and other appilcabJe proviSlOllS of law (the "Act" L and a resolutlOn aui~ adopted by the City Couned of the Issuer on February _. 1996. as supplemented (lne "Resolution" I. ¡n antiClpaoon at the receipt by the Issuer of the proceeds from the sale of nm excee(1;¡.g $ pnnclpal amount of Its Water and Sewer Revenue and RefL:ndln& BonGs. Se:le~ :0_ (the "Bonds"), and is subject to all the tems and condlt:ons of tf1e ResojiJ~lOn. This note shall not be valId or become obligatory for any purpose ftlflcate of authenticatlOn hereún shall have been manuai}y signed by the Registrar REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE SIDE HEREOF AND SUCH FCRTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH IN THIS PLACE, un he (Provlslons on Reverse By: Authonzed SIde of Note) SIgnatory precedmg each interest payment date and shall be paid by a check or draft of the Paymg Agent matled to such RegIstered Holder at the address appe.a.nng on such registraoon books or. al the opuon of the Paying Agent. and at the request and expense of such RegIstered Holder. by ba;L~ wire transfer for the account of such Holder. In the event interest payable on thIS note :~ not punctually paid or duly provided for by the Issuer on such mterest payment date. payme:1! of each Installment of such defaulted mterest shall be made to the person In whose name thIS no~e shall be registered at the close of bUSiness on a special record dare for the paymer,t of suer. defaulted mterest as established by notice to such RegIstered Holder, not iess than ten (10) day~ preceding such special record date. DATE OF ACTHENTICATION ReSOlUtion ThIS note IS Registrar one of the Notes 12 Advance Refunding of the CERTIFICATE OF AUTHENTICATION ue descnbed In he wIth¡n-ment1one~ 1995 1996 1997 1998 1999 2000 2003 $ 2.146.557 253 248 248 252 250 891 375 733 683 883 983 900 $ 65 7,119 6,876 6,633 6,390 6,147 32.337 502 $ 2.212.059 260,494 255,609 255,316 259,273 257,130 924,237 18 as the whIch 9 ail reglSLraJ. or such other reg~st:-a~ uer sMal] hereafter duly appomt (the "Registrar"). at the close of busIness on the da haP be the fifteenth day I'.vhether or nO! a busmess day) of the caJendar month ne this transaction reacquisition price This difference, repo from bonds payable effective inte its total ..._...... economic service , as paymg agcnt, or suer. othe; paymg agent as the Issuer shall hereafter duly appomt (L;,e "paymg Agent" J. Payment of tad lnswlment of Interest shall be made to the person In whose name :hlS nOte ~har be reglStere-e on the reglstrauon books of the issuer maIntamed by $ $ $ Section 2.9 form of Notes. Except for Vanable Rate Notes. the form of which shall be provided by Supplemental Resolution, the Notes shall be in substanually the fo!\owtng form With such omissions, insertions and variatIons as may be necess.ary and/or deslrable and approved by the Mayor or the Clerk prior to the Issuance thereof (which necesslt! anà'Of desirability and approvaJ shall be evidenced conclusIvely by the lssuer's deliver}' of the Notes to the purchaser or purchasers thereof): Such Pnnclpal Amount and mterest and t.t1e premIUm, II any, on th1S note payable in any coin or currency of the United State~ of America which. on the respecm of payment thereof, shall be legal tender for the payment of pubhc and pn\'ate debts Pnnclpal Amount and the premIUm, if any, on this nete, are payable. upon presentatl surrender hereof, at the office of are Catö Such Of] a.,n,¿ YEAR ENDING SEPTEMBER 30 BONDS NOTE PAYABLE TOTAL obl:gatIons provIded It The Issuer may elect to Issue any Notes as uncertlficated regIstered publtc (not represented by instruments), commonly known as book·entry obhgattons, shall establish a system of regIstraÚon therefor by Supplemental Resolution. The annual requirements of September 30 1994 $2,070,000 Sales Tax Revenue in annual installments of June 6.3% 1, to Total General 1991 through June 7.05% Long Term to amortize all general including interest payments Debt long-term debt outstanding as of $582,913 are as follows $ $ 1.580,000 1.629.146 In all cases In which the pnvilege of exchanging Notes or transfemng Notes IS exerclsed. the Issuer shalJ execute and the Registrar' shall authenticate and deliver such Nores in accordance with the provlSions of this Resoluúon. Execution of Notes by the Mayor and the Clerk for purposes of exchanglOg, replacmg or transfernng Notes may occur at me ume of the ongmal delivery of the Senes of which such Notes are a pan. All Notes surrendered in any such exchanges or transfers shall be canceled by the Registrar. For ever}' such exchange or transfer of Notes, the Issuer or the ReglStrar may make a charge sufficIent to reimburse it for any tax, fee. expense or other governmental charge required to be paid with respect to sueh exchange or transfer. The Issuer and the Registrar shall not be obl1gated to make any such exchange or transfer of Notes of any Series during the fifteen (15) days next preceding an Interest Date on the Notes of such Series (other than Variable Rate Notes), or, in the case of any proposed redempuon of Notes, during the fifteen (I5) days next precedmg the redempuon date established for such Notes. KNOW ALL MEN BY THESE PRESENTS, that the CllV of Clermont, a mumc1pallty created and eXisting under and by vutue of the laws of the State of Flonoa qht "Issuer"). for value receJved, hereby promises to pay, solely from [he sources of payment heremafter descnbed. to the RegIstered Holder ldenufied above, or regIstered assigns as heremafter provided, the PrincIpal Amount Identified above on the Matunt)' Dat.e IdentIfied above and lOterest (calculated on the basis of a 360-day year of twelve 30~day months) on such Pnnclpal Amount from the Date of Original Issue identified above or from the most re-eer:.¡ Interest payment date to which interest has been paid, at the Interest Rate per annum IdentJf1ed above on and of each year commencing _ unt1! such Pnnclpal Amount shall have been paId or provIded for. ex::ept as [he pro\'l5Ions hereinafter set fonh With respect to redempuon pnor to matunty ma~ De or be.:ome apphcable hereto. Pnnc¡pal Amount Bond, Series $110,000 to 1 2003 interest 1989 due $225,000 rates serially starting vary from The RegIstrar, 10 any case where it IS not also the Paymg Agent 10 respect to any Series of Notes, shall forthwith (a) following the fifteenth day prior to an Interest Date for such Senes. (b) following the fifteenth day next preceding the elate of first mailing of nouce of redempuon of any Notes of such Series, and (C) at any other time as reasonably requested by the paymg Agent of such Series, cenify and furnish to such PaYlDg Agent the names, addresses and holdmgs of Noteholders and any other relevant informauon reflected in the reglsrrauon books, Reg1stered Holder '" CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS or not, for the purpose of receIvmg payment of, or on account . pnnclpal or Redempoon Pnce, if applicable, and interest on such Note and for all other purposes, and all such payments so made to any such Holder or upon such Holder's order shall be valid and effectual to S3tJsf:-- and discharge the liability upon such Note to the extent of the sum or sums so paid and neither the Issuer nor the RegIstrar nor any Paying Agent or other fIduciary of the Issuer shall be affected by any notice to the contrary. ntere Rate l'NITED STATES OF AMERICA STATE OF FLORIDA COUNTY OF LAKE CITY OF CLERMONT WATER AND SEWER REVENUE AND REFUNDING BOND ANTICIPATION NOTE SERIES _ So R~ ( Matunt)' Date Date of Original Issue Cl'SIP -- . CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS draft of the PaYIng Agent .alder In whose name such Note shall be regIstered at the close of busmess on the date wZI be the fifteenth day (whether or not a busIness day) of the calendar month next precedIng such Interest Date, Qr, unless otherwIse provided by Supplemental Resolunon, at the opnon of the Paying Agent, and at the request and expense of such Holder, by bank wire transfer for the account of such Holder. In the event the mtereST pavable on any Series 1996 Note is not punctually paid or duly provided for by the Issuer or. such Interest Date, such defaulted mterest will be pald to the Holder in whose name such Note shall be regIstered at the close of busmess on a special record date for the payment of such defaulted mterest as established by notice to such Holder. not less than ten (10) days precedmg such Special record date. All payments of pnncipal of or RedemptIon Pnce, if applIcable. and Interest on the Series 1996 Notes shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and pnvate debts, AUTHORIZATION, TERMS, EXEClITIONe AND REGISTRATION OF NOTES SectIon 2.1 Authorization of Notes. The Issuer hereby authonzes the issuance of Notes of the Issuer entitled to the benefit, protection and security of thlS Resoiutlon. to be designated as "City of Clennont, Florida, Water and Sewer Revenue and Refunding Bond Annclpatlon Notes," which may be issued in one or more Series as hereinafter provIded. Excepl as provided 111 Section 2.2, the Notes shall be issued only for the purposes of renewmg and extendmg the mdebtedness evidenced by any Series of Notes previously ISSUed. Only one Senes of Notes may be Outstanding hereunder at any time. Except for the Series 1996 Notes, no Series of Notes shall be issued hereunder in an aggregate principal amount exceeding the aggregate pnnclpal amaum of the Series of Notes then OutstandIng, Debt Long-Term Enterprise Fund 13 Secuar. 2,3 ADpltcation of Series 1996 Note Proceeds, Except as otherwIse provided by Supplemental ResolutIon, the proceeds derived from the sale of the Senes 1996 Notes, mcluding accrued Interest and premium, if any, shall, simultaneously WIth the de1!very of the Senes 1996 Notes to the purchaser or purchasers thereof. be applied by the Issuer as foilows The Notes may, if and when authorized by the Issuer pursuant to thIS Resoluuo' or Suppiemental Resolution, be ISSUed with such further appropnate part1cular desIgnation aaaed to or Incorporated in such utle for the Notes of any parucular Senes as the Issuer ma determine and as may be necessary to diStInguISh such Notes from the Notes of any other Senes. Each t'iote shaJJ bear upon ItS face the designation so detennmed for the Senes to whl.:h It Deiong ended issues outstanding for the in of changes summary is a 1994 The following September 30 year 1993 ISSUE Paymen (B) A sum which, together with other funds available therefore, shall be sufficler.t to fully prepay and discharge the Refunded Obligations, shall be paid to the haider thereof pursuant to the provisions of the Line of Credit Agreement. In the Note shall be deposited mteres Accrued and capitalized (A) Account Secuan 2,2 Descnptian of Senes 1996 Notes, A Senes of Notes er.titled to the oenefit. protection and security of this Resolution IS hereby authorized to be issued in an aggregate principaJ amount not to exceed $8,500,000 for the pnnclpaJ purpose of tinancmg a part of the cost of acquiring and constructing the Project, refunding the Refunded OblIgauons and paying certain costs of issuance incurred with respect to such Series. Such Senes shall be deslgnated as. and shall be distInguished from the Notes of all other Senes by the ntle "Clt~ of Clermont, F!onda, Water and Sewer Revenue and Refundrng Bond AntIclpatlor. Notes, Senes i 996." provided the Issuer may change such designation In the event that the Senes 1996 Notes are no! ISSUed In calendar year 1996. 000 000) $ 3.780.000 3,905 (125 $ 1993 1994 30 October 1 September Bonds payable Retirements Bonds Payable IC) The Issuer covenants and agrees to establish a separate account wan an Authonzed DeposItory to be known a.5 the "CIty of Clermont Water and Sewer Revenue and Refunding Bond Anticipanon Notes Costs of Issuance Account" (the "Costs of Issuance Account"). which shall be used only for the payment of costs and expenses descnbed In this subsectIon. A sum sufficIent to pay all COSts and expenses In conneeuon with the preparauon, Issuance and sale of the Senes 1996 Notes, including fees of financial advisors, insurers, engineering and other consulting fees, legal fees, printing fees, rating agency fees and other similar costs shall be deposIted to the credit of the Costs of l::,.:.uance Account. and all such costs and expenses shall be promptly paid by the Issuer to the persor.s respectively er.titled to re<:el\'e the same. When all moneys on deposIt to the credit of the Costs of Issuance Account shall have been dIsbursed by the Issuer for the payment of such costs and expenses. the Costs of Issuance Account shall be closed; provided. however, that if any balance shall rem3.1n in the Costs 01 Issuance Account six months after issuance of the Series 1996 Notes. such moneys shall be transferred by the Issuer to the Construction Fund and the Costs of Issuance Account shall be closed. After the Costs of Issuance Account shall be closed, the Issuer may pay from the Construcuon Fund any unpaid issuance expenses. The Series 1996 Notes shall be dated as of the first day of the mar.th rr. which occurs the delivery of the Series 1996 Notes to the purchaser or purch~rs thereof or such other date as may be set forth by Supplemental Resolution: shall be issued as fuJJy regIstered Notes: and shall be numbered consecutively from one upward in order of matunty preceded by the ¡ener "R;" shall be in such denominauons and shall bear interest at a rate or rates not exceedIng ¡he maXImum rate permitted by law (calculated on the basIS of a 360-day year of twelve 30-day months), payable in such manner and on such dates; shall mature 10 such amounts and In slJch years not exceeding five (5) years from their date; shall have such Paymg Agents and Registrars and shan contaIn such redemption provIsIons: all as the Issuer shali hereafter provIde b Supplemental Resoluuon, 1, paid serially in annual December 48% is issue issue due 000 starting interest of 5 is comprised of the following bond to $515 2015; $3,905,000 1993 refunding installments of $125,000 1993, through December 1 semiannually The debt 15 The pnnc1pal of or RedemptIon Pnce. If apphcable, on the Senes i 996 Notes IS p2~'ab¡e upon presentation and surrender of the Series 1996 Notes at the office of the PaYing Agent. Interest payable on any Senes 1996 Note on any Interest Date will be paId by check or 14 secure the 30 outstanding as of September are as follows TOTAL to system are pledged annual requirements to amortize the debt including interest payments of $2.275.837 YEAR &.'iDING SEPTEMBER 30 sewer water and The net revenues of the repayment of the debt. The 1994 Section 2.7 Notes Mutilated. Destroyed. Stolen or l.<JS¡, In case any Note shall become mutilated, or be destroyed, stolen or lost, the Issuer may, in its discretion, issue and deliver. and the Registrar shall authenncate, a new Note of like tenor as the Note so mutilated. destroyed, stolen or lost, in exchange and substitutIon for such mutilated Note upon surrender and cancellation of such mutilated Note or in lieu of and substItution for the Note destroyed. stolen or lost, and upon the Holder furnishing the Issuer and the Registrar proof of such Holder's ownership thereof and satIsfactory indemnity and complying with such other reasonable regulations and condiuons as the Issuer or the RegIstrar may prescribe and paymg such expenses as the Issuer and the RegIstrar may meur, All Notes so surrendered or otherv.'Ise substItuted shall be canceled by the Registrar, If any of the Notes shall have matured or be about to mature, instead of issuing a substitute Note, the Issuer may pay the same or cause the Note to be paid, upon being indemnified as aforesaid. and if such Notes be lost, stolen or destroyed, Without surrender thereof. In the 326,420 326,457 325,745 329,345 327,358 1,515,850 1,082,688 1.076,561 745.413 $ 2004 2009 2014 2016 1995 1996 1997 1998 1999 2000 2005 2010 2015 Any such duplicate Notes issued pursuant to this Section 2.7 shall constItute anginal, addItIOnal contractual oblIgations on the pan of the Issuer whether or not the lost. stolen or destroyed Note be at any erne found by anyone, and such duplIcate Note shall be entnled to equal and proportIonate benefits and rights as to lien on the Pledged Funds to the same eX[fn! as all other Notes ISSUed hereunder and shall be entItled to the same benefus and secun(\. as the Note so lost, stolen or destroyed. Secuor. 2,8 Interchan~eab¡J¡[y, Ne~atiab¡Jity and Transfer. Notes, upor. surrender thereof at the office of the RegIstrar with a written instrumem of transfer satisfactory to the Registrar, duly executed by the Holder thereof or such Holder's attorney duly authorized In wntmg, may, at the option of the Holder thereof, be exchanged for an equal aggregate pnnc!paJ amount of registered Notes of the same Series and matunty of any other authonzed denomlnatlons Seenon 2.4 Execuuon of Notes, The Notes shall be executed In the name of the Issuer With the manual or facsImile signature of the Mayor and the ofriclal seal of the Issuer shaJl be Impnnted thereon, attested and countersigned wIth the manuaJ or facsimile signature of the Clerk. In case anyone or more of the officers who shall have sIgned or seaJed any of the Notes or whose facslmÜe signature shall appear thereon shall cease to be such officer of the Issuer before the Notes so signed and sealed have been actually sold and delivered such Notes may nevertheless be sold and delivered as herein provided and may be issued .as If the person who signed or sealed such Notes had not ceased to hold such office, Any Note may be signed and sealed on behalf of the Issuer by such person who at the actual time of the executIon of such Note shall hold the proper office of the Issuer, although at the date of such Note such persar. may not have held such office or may not have been so authori:zed. The Issuer may adopt and use for such purposes the facsimile signatures of any such persons who shall have held such offices at any tlme after the date of the adoption of this ResolutIon, notwithstanding that eIther or both shall have ce.ase.d to hold such office at the time the Notes shall be actually sold and delJvered. be deposIted shall 1996 Note proceeds of the Serie The balance (D) ConstructIon Fund. SectIon 2.5 AuthentlcatIor¡. No Note of any Senes shall be secured hereunder or entitled to the benefit hereof or shall be valid or obligatory for any purpose unless there shalJ be manually endorsed on slJch Note a certificate of authentIcarion by the Registrar or such other enuty as may be approved b) the Issuer for such purpose. Such certificate on any Note shaJI be conclusive eVidence that such Note has been duly authentIcated and dehvered under th1S Reso!ut1on. The form of such certificate shaH be substannally in the form provided In Section :,9 hereof Secnon :.6 TemporarY Notes Unu] the definitIve Notes of any Senes are prepared. the Issuer may execute, in the same manner as IS provided 10 SectIon 24. and deJiver. upon au:hentIcauon by the Registrar pursuant to SectIon 2.5 hereof. In lieu of definitive Notes, bUI subJect to the same provislOns, limitations and conditions as the definiuve Notes, except as tC' the denom1Oauons thereof. one or more temporary Notes substantially of the tenor of the defir1JtIve Notes 10 heu of which such temporary Note or Notes are Jssued. in denomInatlons authorized by the Mayor and the Qerk, such authorization to be evidenced conclusIvely by their execution of such temporary Note or Notes, and with such omissions, insertIons and variations as may be appropnate to temporary No~es. The Issuer, at ItS own expense. shall prepare and execute definttIve Notes, which shalJ be authenticated by the Registrar Upon the surrender of such temporary Notes for exchange, the Registrar, ",1thout charge to the Holder thereof. shall dellver In exchange therefor defintuve Notes, of the same aggregate pnncipal amount and Senes and matumy as the temporary Notes surrendered. Until so exchanged. the temporary Sotes shall In all respects be enuùed to the same benefits and secunt) as aefinnive Notes iSSUed pursuant to this Resolution. All temporaf)' Notes surrendered In exchange for another temporar\' .'\jote or Notes or for a defimtJve Note or Notes shall be forthwith canceled by ¡he RegIstrar 055.837 6 $ The Notes ISSUed under this Resolution shall be and have all the qualmes and !OCldents of negotiable mstruments under the laws of the State of Honda, subject to the pro\ïsions for registration and transfer contained in this Resolution and in the Notes. So iong as any of the Notes shall remam Outstanding, the Issuer shall cause to be maintained and kept, at the office of the Registrar, books for the registration and transfer of the Notes, Each Note shall be transferable only upon the books of the Issuer. at the offIce of the RegIstrar, under such reasonable regulatlOns as the hsuer may prescnbe, by the Holder thereof In person or by such Holder's anorney duly authonzed 10 wntIng upon surrender thereof together wIth a written mstrument of transfer satIsfactory to the Registrar duly executed and guaranteed by the Holder or such Holder's duly authonzed arromey. Upon the transfer of an) such Note. the Issuer shal! Issue, and cause to be authenucated, m the name of the transferee a ne~ Note or Notes of the same aggregate pnncIpal amount and Senes and matumy as the surrendered Note. The Issuer. the Reg1straI and any Paymg Agent or fiduciary of the Issuer may deem and treat the Person in whose name any Outstanding Note shall be registered upon the books of the Issuer as the absolute owner of such Note, whether such Note shall be overdue i 7 2 (E) The Issuer deems it necessary, desU'able and In t.b.e best mteres! of the Issue' that the Pledged Funds be pledged to the payment of the pnnClpal of and interest on the Notes. No part of the Pledged Funds has been pledged or encumbered m any manner ti) except !ha: the Net Revenues are presently pledged for the payment of the pnncipal of and interest on 13 Total Reserved for restricted for Reserved Fund Balances Employees payment Retirement Systems of retirement benefits $ 0.000.000 2 428 023 (D) The Issuer deems it necessary, desirable and 111 the best fmanclal Interest of the Issuer that the Refunded Obliganons be refunded. Simultaneously with the lSSliance or the Series 1996 Notes. a sufficient ponion of the proceeds of the Series 1996 Notes and other funds available will be paid by the Issuer to the holder of the Refunded ObligatIons to effectuate the refunding and immediate discharge of the Refunded Obligations ARTICLE 2 SectIon 1.7 Refundine of Refunded Obh¡auons. SJmultaneously wnh lh deltvery of the Senes 1996 Notes to the purchaser or purchasers thereof, and the Issuer having given notice of prepayment to the holder of the Refunded Obligations as provIded in the Llne of Credit Agreement. the Issuer will pay to the holder of the Refunded Obligations the princlpal amount of the Refunded Obligations, together with unpaid interest accrued on such pnnclpaJ amount to the date of such payment. in accordance \II1th the provisions of the Line of (recht Agreement. Funds Reserved for Debt Service payment of interest on Funds restricted general long term for debt 37 409 (C) The he Refunded Obligations, (8) The Issuer deems It neces.s.ary, desirable Issuer that the Project be acquired and constructed. A part of !înanced with the proceeds of the Series 1996 Notes. uer has heretofore ISSUed and has presenùy outstandmg and unpaId Reserved for Debt payment of general long Funds restricted debt principal 48.000 mamt.a1ßS !ndustnal and In the bes: Interests of the the CoSt of the Pro}CC! shaJ: be (A) For the benefit of its inhabitants, the Issuer presently o",·ns, operates and the System for the supply and distribution of water for domestic, commercJal and use and for the colJection, treatment and disposal of sewage ObJigaOOTJS PrOject SectIon 1.5 Authonzanon of Project. The acqulsitlon In the manner herem provided. is hereby authorized. '" SectIon 1.6 AuthonzatIon the manner herem provided of Refundin~, The is hereby authonzed. efundmg oÎ the Retunded Service term for follows: SectJon ,4 f.j¡¡¡ j¡¡¡,¡. It IS hereby asceruuned, deternuned and declared as and construcuon of (H) It IS appropnate that the Issuer approve the dlstribuuon of a preJimmar;. offiCIal statement for the pUr¡x')se of acquainting potential investors with pertinent informauon wlth respect to the Issuer and the Series 1996 Notes. For this purpose. It IS appropnate that the dlstnbution of a prelirrunary official statement, substantially lß the form of the prelirrunary offlcial statement attached hereto as ~, be approved. he Reserved for Cemetery Care Funds City ordinance for future care of the Reserved velopers the acquisition recreation areas for in Recreation accordance with and ~unds provided by 1 a City development ordinance of parks cemetery reserved by de for and 213.570 00.000 Secuon 1.3 Resolucon to Consutute Conmçt_ In consJderatIon of the purchase and acceptance of any or all of the Notes by those who shall hold the same from ume to time. the provIsions of this Resolution shall be deemed to be and shall constitute a contract between the Issuer and the Holders from time to time of the Notes and shall be a part of the contract of the Issuer with any Credit Bank and any Insurer. The pledge made in this Resoluuon and the prc)\:isions, covenants and agreements herein set forth to be performed by or on behalf of the Issuer shall be for the equal benefit, protection and security of the Holders of any 3!ld all of the Notes and for the benefit, protection and security of any Credit Bank and any Insurer. All of the Notes. !"egardJess of the time or times of their issuance or maturity. shall be of equal rank without preference, priority or disuncuon of any of the Notes over any other thereof except as expressly provided in or pursuant to thIS Resolution. (G) The pnnclpal of and interest on the Notes and all other payments provIded for In this Resolution will be p3..ld solely from the sources herem provlded In accordance wlth the terms hereof; and no ad valorem taxing power of the Issuer will ever be exerci~ nor wJ1J an y Holder of any Note or any Credit Bank or any Insurer have the right to compel the exercise of such ad valorem taring power to pay the principal of or interest on the NoteS or to make an~ other payments provlded for 10 this Resolution, and the NoteS shall not constitute a hen upon the System or upon any other property of the Issuer or situated withm Its corporate temtonal :1mit.s. except the Pledged Funds. Reserved for Inventory Funds expended for goods that will be used in the following year 0.000 [he pro\" Sectlon 1.2 IOns of the Act. Authonty (F) The estimated Gross Revenues to be derived in each year hereafter from the operanon of the System will be sufficient to pay Operating Expenses. the pnnclpal and interest on the Prior Lien Obligations, as the same become due, all other payments provide.d for In the Loan Agreement and the First Supplemental Loan Agreement, and, together with the EXCIse Taxes, the mterest on the NoteS and all other payments provided for In thiS Resolution Words for ResolutIon, imporong the smgular number mclude the plural ThIs Re501uuon number, IS adopted and pursuant (Q Vice e'sa Reserved for Police state statute for Education Funds training of police reserved by officers $ 00.000 oÎ this Resoluuon; Resolution. of adoptIon of he Refunded ObhgatIons and (ii) e~cept that the Net Revenues have been pledged paymen¡ of the Prior Lien Obligations. and the term "hereafter- shall mean after the date thIS [lISt for the Fund Balance Reserves have been established for the following items 15 Reserved Fund Balances and Retained Earnings 10 Totals $ 185 988 $ 185.988 Senes- shal1 mean al1 the Notes delivered on ongmal íssuance 10 a slmu!taneou and Identified pursuant to Secuons 2.1 and :::.2 hereof Of In a Supp!emei.:...a... terms. hall The terms "herem." "hereunder." "hereb~ eier to thlS ResoJuuon; the term "heretofore" "hereto. hall mean "hereof. '" and an~ SImilar before the date ot adoptlon Fire Pension Trust Cemetery Nonexpendable Group Self Insurance ~ Seeuri ties ~ hall mean Federal Securiues and Prerefunded. Obl1gatlons. "Variable Rate No¡es" shalJ mean Notes ISSUed w!!n a \."anabJe. ad}ustabJe. ornembie or other mterest rate whIch at the date of lssue IS not flxed as one or more stated percentages for the enure term of such Notes. Trust Fund General Employees Pension Trust Police Pension Trust Fund Fund Fund . 11,933 36,103 11 . 834 21 1,364 25.120 hereof from time ResolutlOns "Revenue Fund hall mean the Revenue Fund establtshed pursuant to Section 4,'¡ SerIes Undervmter' 996 Notes, hall mean Wilham R. Hough & Co e underv,:nter ior e to Resolutlon" and "this Resoluuon" shall mean thIS mstrument, as :ime be amended. modified Of suppJememed by any and aJJ lhe same ma ~ Suppìemen:.a.) General Fund Utility Revenue Fund Sanitation Fund Stormwater Fund Fund 34,904 6,475 117.357 768 RegIStrar" shall mean any regIstrar for the Notes appoInted by or pursuant to Suppiemental ResoJuoon and H5 successors and assigns. and any other Person which ma.',. at an~ time be substituted In place pursuant to Supplemental Resolutlon "Taxable Note shall mean any Note which states, In the body thereof. interest Income thereon is Includab!e m the gross Income of the Holder thereof for Income taxation purposes. "System" shall mean any and all water producuon, transmisSion, punficauon and dlstnbutlon facilities and appurtenant facilJties, and all sewage collection, transmiSSion. rreatmer.t and disposal facilities and appurtenant facilities now owned and operated or hereafter owned and operated by the Issuer, w'hich System shall also Include any and all improvements. extenSIons and addltlons lhereto hereafter constructed or acquired. which shall be tÏnanced either irom the proceeds of Notes or from any other funds or sources, together with all property. real or personaL tangIble or intangible, now or hereafter owned or used in connectlOn therewltr.. hat the federaJ $ 28,422 97.675 $ Revenue "Refunded Obhgauons" shall mean the Issuer's outstandmg Lme Note. Draw Number 1. ISSUed pursuant to the Lme of Credit Agreemen of Cred\! Interfund Payables "Redemption Pnce" shall mean, with respect to any Note or pnnclpaJ amount or portion thereof, plus the applicable premium, if redemption thereof pursuant to such Note or Supplemental Resolution. poruon thereof. the any, payable upor. Interfund Receivables hereol "Supplemental Resolution" shall mean any resoIuuon of the Cssuer amendmg or upplemenung thiS Resolution. adopted and becoming effective prior to the issuance of the Series Q96 Notes or m accordance with the terms of Secuons 8.1, 8.2 or 8.3 hereof Indi vidual fund 1994 are as interfund follows receivable and payable balances at September 30 'Rebate Fund" "Rates" shall mean the rates, fees, rentals and other charges which shall be made and collected bv the issuer for the use of the product. semces and facJlltJes to be provïded b) ¡rJè System. hall mean he Rebate Fund established pursuant to Secuon 4.4 subordmate heeD! "Subordmated Indebtedness~ and ¡umor to the Notes. ISSUed shall mean that mdetnedness of me Issue..'". In accordance with the proVisIOns of Section 6 14 Interfund Receivables/Payables CITY NOTES TO OF ",L£RM THE FINAN ONT, FLORIDA CIAL STATEMENTS "Rate StabilizatIOn Fund" pu!'"suant to Secuon 4,4 hereof. "Qualified. Independent Consultant- shall mean one or more qualified and recog!'llze.d independent consultants, having favorable repute, skill and e,;:perience with respect to the acts and duues required of a qualified independent consultant to be provided co ·the Issuer. as shall from time to ume be retamed by the Issuer to perform the acts and carry out the dunes herem pro....Ided for such consultants. The Qualified Independent Consu1tant ma~ be also the \ccouma..ru or the Issuer's Consulting Engmeers. hall mean the Rate StabihzatJon Fund establ1sned 'State" "Standard & Poor's" shali mean Standard & Poor's Ratlngs ServIces. a dIVIsion of The ¡\fcGraw Hill Companies, Inc., a naDonally rec.ogmzed 5eCuntleS raring firm. and an) successor and successors thereto; and lf such corporation shall be dissolved or liqUIdated or shaij no longer perform secunúes rating functions, shall mean any other naUonóllJy recogOlzed secuntJes rating firm designated. by the Issuer and approved by any Insurer and/or a.ny Cre.dt: Bank. as apphcabJe. hall mean the State of Florida, ,. t.1\ the Issuer on September 24. 1957, as amended and supplement6. as codif¡ed:n Sect10ns ::.J through 21-18. Chapter 2.!' Code of Ordinances, City of Clermont, Flonda. as amended. enacted pursuant to Se<:tIon 166,231. Florida Stature., as amended, formerly Se<:tIon 167.431 Fionda Statutes. Re:\.:ndmg ( Resolutlon authonzmg oi \anaoons In marunt)' "Senes 1996 Notes" Bond AnucIpaUon Notes uance by the Issuer of such Notes Interest rate or other provislOns. shalJ mean the Issuer's Water ana Sewer Revenue anC Senes 1996. authonzed pursuant to Section .2..2 hereof as a separate Senes, egardless . . e e OF CLERMONT, FLORIDA THE FINANCIAL STATEMENTS TABLE OF CONTENTS CITY NOTES TO City Manager Mr. Wayne Saunders, February 26, 1996 Page 8 36 of Significant Accounting Policies Reporting Entity Fund Accounting Basis of Accounting Budgets Assets, Liabilities and Fund Equity Revenues, Expenditures and Expenses Total Columns Summary A B C D E F G 1 In are necessary upgrades requirements Therefore, certain levels of maintenance and equipment order to provide for proper operation of the facility 8 Rehabilitation Lift Station $51,425.00 Estimated Cost of Construction Needs MGD plant. To be completed along with 0.75 immediate funding Timing of Funding 43 Compliance and Accountability Budget Revisions General Fund BudgetjGAAP Reconciliation Special Revenue Funds BudgetjGAAP Reconciliation Enterprise Fund Budget Comparisons Stewardship A B C D 2 Plans currently being prepared. Have not applied Rehabilitation Permits Lift Station 2 $105,875.00 of Construction Estimated Cost 44 45 Receivable Deposits and Investments Community Development Block Grant Fund Mortgages 3 4 Needs MOD plant. To be completed along with 0.75 immediate funding Have not applied. Timing of Funding Permits in General Fixed Assets Plans currently being prepared 46 46 Fund Fixed Assets Changes Changes in Proprietary 5 6 Lift Station 21 A Rehabilitation 46 Pension Funds 7 Needs MGD plant. 115.00 To be completed along with 0.75 immediate funding $38 Estimated Cost of Construction Timing of Funding 52 Post-Retirement Benefits 8 52 Deferred Compensation 9 Plans currently being prepared. applied. Have not Permits 53 Risk Management 10 Lift Station 26 Rehabilitation 53 Debt Long-Term General 11 50.00 $18 of Construction Timing of Funding Estimated Cost 54 Advance Refunding 12 Needs MOD plant To be completed along with 0.75 immediate funding 55 Debt Enterprise Fund Long-Term 13 Plans currently being prepared applied. Have not Permits 56 Interfund ReceivablesjPayables 14 5 Rebuilding Lift Station 56 57 Reserved Fund Balances and Retained Earnings in Contributed Capital Changes 15 16 MGD plant $236,489.00 To be completed along with the 0.75 Needs immediate funding of Construction Timing of Funding Estimated Cost 57 58 58 Information Contingencies Other Matters Segment 17 18 19 permits in hand, FDEP Permit No. CS35-282294 All Permits Based upon the application of these criteria of each potential component unit addressed entity In addition, the increased loading will require that lift station stations previously discussed, the flows from lift station 15 However, in its current condition, the lift station is incapable 15 be will rebuilt. continue of handling the additional capacity the following in defining the is a brief City's Unlike the existing lift on the current route 1 2 Factors other than oversight relationship are Scope of public service Special financing relationships which may significantly review reporting A new force main is proposed to serve existing lift station 18 located at the intersection of Lake Shore Drive and Ramie Road west of US Highway 27. This force main will extend east along Hook Street and discharge into manhole E4-11, From MH E4-1l the wastewater will gravity flow to lift station E-4. Lift station E-4 will pump the wastewater along a force main to lift station E-5 south of SR 50. The flow will then be routed to E-6 as stated above. 1 2 3 ACCOUNTABILITY 1 2 3 Selection of governing authority Designation of management Ability to significantly Budgetary authority Responsibility for debt Fiscal management FOR FISCAL MATTERS influence influence operations the entity Re-routing of Lift Stations to Existing Plant To relieve the loading of the existing wastewater plant on the west side of the City, existing lift stations 18, 21, 21A and 26 will be re-routed from the existing plant to the new 0.75 MGD treat- ment facility. Lift stations 21, 21 A and 26 will be routed along existing lines to the corner of East Pitt Street and Grand Highway. There, the wastewater will gravity flow, through lines to be constructed, to lift station E-l in the Northridge Subdivision, MANIFESTATIONS OF OVERSIGHT Permits in hand. FDEP Permit No. CS35-268054 A RESPONSIBILITY Reporting Entity _ The financial statements of the City include all funds and account groups that are controlled by or dependent on the City. The City did not have any oversight responsibilities with respect to a component unit, a separate governmental unit, agency or nonprofit corporation, which would require the inclusion of the component unit's financial statements with the City's financial statements. The basic criterion for inc¡uding a component unit within the City's reporting entity is the exercise of oversight responsibility. The specific criteria used by the City to establish oversight responsibility are Permits Timing of Funding Cost of Construction: Hancock Road Lift Station (E-6) Permits Already constructed. $341 Have not applied. Plans currently being prepared. 092.92 Needs immediate funding. The financial statements of the City of Clermont, Florida have been prepared in conformity with generally accepted accounting principles as applicable to governments. The following is a summary of the City's more significant accounting policies Timing of Funding: Estimated Cost of Construction: funding. To be constructed in the spring of 1996 $339.700.80 Needs immediate The City of Clermont, Florida was incorporated December, 1916 under the laws of the State of Florida and operates under the council-manager form of govern- ment under its charter adopted pursuant to H.B. 2223 ch 67 - 1217, Special Acts 1967. of the State of Florida Gilbert Street Permits Lift Station (E-5) Have not applied, Plans currently being prepared 1 Summary of Significant Accounting policies Timing of Funding funding. To be constructed in the spring of 1996 Needs immediate NOTES CITY OF cLERMONT, FLORIDA TO THE FINANCIAL STAT&~S Estimated Cost of Construction Lake Wilma Lift Station (E-4) $255,640.50 Mr. Wayne Saunders, February 26, 1996 Page 7 City Manager e - Maxim. Service RequU'ement" shall mean, as of any partIcular dale of cakuJatJOn, the greatest annual Debt Service Requirement for the Notes for the then current or any future Note Year the b necessa¡;. pornon of the cost of the additional System capac.e expected extenSIon of System services to such new cu~~ a e:o:¡cnSlOn or CITY OF CLERMONT, FLORIDA NOTES TO THE FINANCIAL STAT&~S "MaxImum Interest Rate" shaH mean, WIth respect to any partIcular Vanab!e Rate Notes. a numencal rate of mterest, which shall be set forth In the Supplemental Resoiunon de!meaung ¡he detaJ.ls of such Notes, iliat shall be the maxImum rate of Interest such NOle~ ma ai a.1> :¡me bear ¡n the future In accordance WIÙ1 the terms of such SuppiementaJ Reso!U!lon "Impact Fees Debt ServIce Component" for any Note Year shall mean the amount of Available Impact Fees equal to the product determined for any Series oÎ Notes Issued wholl~ or In pan to finance or refmance ExparlSlon Facilities by multJpJymg the Note ServIce RequIrement for such Senes by the ExpansIOn Percentage for such Senes. "Impact Fees Debt SeI'\-1Ce Llmlt" shall mean. as of any date of calculatJon. an amount equal to the Impact Fees Debt Service Comlxment for the then current Note Year pius the aggregate Impact Fees Debt Service Components for all pnor Note Years mJr..US the <J.ggregate amount of Impact Fees previously applied to the payment of the principaJ oi, Redempuon Price, if applIcable, or mteIest on the Notes. with both the in the Enter- established in accordance for the following items have been indentures - Reserves City's bond Retained Earnings covenants of the prise Funds be dul "Moody's Investors Service" shall mean Moody's Investors Servlce. the nauonall) re<:ogmzed s&unties rating firm, and any successor or successors thereto: and if such corporatIOn shall be dissolved or liquidated or shall no longer perfonn securities raung funcuons. shall mean any other nauonally recognized securities nting firm desIgnated by the Issuer and approved by the Insurer and/or the CredIt Bank, as applicable. ma person a shall mean the Mayor of the Issuer or such othe to act on hIS or her behalf. "Mayor" by the Issue authonzed to Fund established pursuant the Impact Fees shall mean Fees Fund" "Impa, SectJOn 4.4 hereof Reserved for Sinking Fund Funds restricted for the payment of principal and interest of 1993 issue Operaring Expenses, "Note Insurance Policy" shall mean any murucipal note new Issue msurance pollcy ISSUed by an Insurer guaranteeing the payment of the princlpal of and mterest on an~' the Notes. Ie Revenues shall mean Gro "Net Revenues' "Insurer" shall mean such Person as shall be In the business of insunng or guaranteeing the payment of pnnclpal of and mterest on municipal secunties and whose credll :s such thaI. at the ume of an) aCUon or consent required or permmed by the Insurer pursuant 10 the terms of thJS Resoluuon, all municipal secunties msured or guaranteed by It are then rated, because of such lßsurance or guarantee, in one of the two most secure grades b) eaher Moody's Investors Sernce or Standard and Poor's, and WIth respect to any Series of Notes, the hsurer whtch shali have Insured or guaranteed payment of the pnnclpal of or interest on such Notes or pol1C1es portion of 19.085 $ "Note ServIce ReqUirement" for any Senes for any Note Year shall mean the sun; of thai ponlOn of the Debt Service Requirement for such Note Year and all other payments requ1red by thIs Resoiutlon to be paId in such Note Year wIth respect to the Notes of such Senö. whicn shall mclude redempl10n premIUms. 1f any, payable In such Note Year on "Interest Date" shall mean such date or dates for the payment of ¡ntere Notes as snan be provIded by Supplemental ResolUl1on. restricted (maxi- ensuing Reserved for Reserve Account Funds for future servicing of the revenue bonds mum amount of debt service due in any "Note Year" pertamlng to any Series shalJ mean the annuai penod commencmg each year on the day after the day of the year on which the Notes of such Senes mature. whether or not Notes of such Series mature in every year or In the Note Year under conslderatJon (except that the first Note Year for every Senes shall commence on the date at Issuance of the Notes of such Senes), and ending on the next succeeding day of the year whIch shall be such day of the year on which the Notes of such Senes mature. Each Note Year shan be àeslgnated WIth the number of the calendar year 111 whIch such Note Year ends. Flonda. Clermon he CIty 0 shaIJ mean "Issuer" o Sene 323.383 ) year "Line of Credj¡ Agreement" shall mean the Line of Credit Agreement. dated a 1995. between the Issuer and First Union NatJonal Bank oî Flor::da. Orlando è4, of ;\1a~ Fionda Funds Fees for Utility Benefit for utility expansion Reserved restricted and unde ue of the and other obhgauon he Indebledne "Loan" shall mean he Loan Agreement pursuant to 1. 262,162 630 $ 1. 604 Reserved Retained Earnings Total -Noteholder" or -Holder" or -holder- shall mean any Person who shalJ be the owner of any Outstandmg Note or Notes accordIng to the regJstrauon booK.s of the "Notes" shall mean the Senes 1996 Notes or any Senes of Notes lSSUed for the purpose of renewing and extending the obligations evidenced by any Senes of Notes prevIOusly Issued hereunder. regIstered Issuer "Loan Agreement" shall mean that certaJn Loan Agreemem, dated as of J'J!~ among NatlOnsBank of Flonda. N.A.. as trustee. the (It\ of ArcadIa. Flonaa ana [he e oq $ 2.931,526 88,631 in Contributed Capital Balance October 1, 1993 Contributions from developers Changes 16 020.157 3 $ 1994 30 Balance September sanitation, water and the year ended Septem- ENTERPRISE FUNDS STORmlATER FUND Segment Information three Enterprise Funds which provide stormwater services Segment information for is as UTILITY FUND SANITATION FUND follows City maintains and 1994 The sewer, ber 30 17 offIcIal and the EXCJse Taxe prelImInary shall mean the Net Revenue "Prelirrunary Official Statement" shalJ mean the form 0 sta!emen! relanng to the Senes 1996 Notes attached hereto 35 ~. Pledged Revenues" 939,004 325,746 44,125 10,000 (46,602) 37,507 102,644) 88.631 $ 1 142,494 783 41 568,876 $ 51,021 6,071 10,000 $ 1,227,634 $ 274,725 3.729 507 692 37 87 249 24 602 585) 631 090 638 827 430 1,671 12,132 775 596 299 112 188 312 10,388 343,464 760.095 306.927 1,139,578 11.060,433 Operating Revenues Depreciation Operating Income ( Operating Grants Operating transfer Operating transfer Net Income (Loss) Current Capital - Contributions Plant, Property and Equipment Additions ~et ~orking Capital Total Assets Loss -()pe;r.lting Expenses- shall mean the wuer's expenses for operation, maIntenance, repairs and replacements with respect to the System and shall include, without limJting the generality of the foregoing, administration expenses, insurance and suret)' note premIUms. the fees of any rebate compl1ance service or of Bond Counsel relating to complIance w¡[h the provIsIons of Secnon 148 of the Code, legal and engmeenng expenses. ordm3.I')' and current rentals of equipment or other property, refunds of moneys lawfully due to others. paymems to others for disposal of sewage or other wasteS, payments to pensIOn, reuremenl, health and hospitalization funds, and any other expenses required to be paid for or WIth respect to proper operation or maintenance of the System, all to the extent properly attributable to the System 10 accordance with generally accepted accounting principles employed In the operation of public utility systems similar to the System, and disbursements for the expenses, liabilities and compensation of any Paying Agent or Registrar under this Resolution, but does not include any costs or expenses in respect of original construction or improvement other than expenditures necessary to prevent an interruption or continuance of an interruptIon of the Gross Revenues or minor capItal expendItures neœssaI')' for the proper and economical operanon or maIntenance of the S'rstem, or any provIsIon for Interest, depreciation, amon:iz.atlon or sImilar charges "Prerefunded Obbgauons" shall mean any notes or other obJiganons of an~' state of me UßJted States of Amenca or of any agency, instrumentalIty or locaJ governmental un ( of af1~ suer. state (I) whJch are (al not callable pnor to matunt) or /b) as to WhICh Irre\ ocable mstnlCtlons have been gIven to the fIducIary for such notes or other obhgatlOns b~ the obhgor to gIve due nouce ofredempuon and to call such notes for redemptIon on the date or dares specltied 10 such mstrucuons, (2) which are fully secured as to pnnclpal. redempnor. premlum. if any. and Interest by a fund conslsung only of cash or Federal Seçunoes. secured In the manner set forth in Section 9.1 hereof, WhICh fund may be applied only to the pa~'ment of such pnnclpal of. redempuon premium. if any, and interest on such notes or other obJ¡gatJOns on the matunty date or dates thereof or the specified redemption date or dates pursuant to such Irrevocable mstrucbons. as the case may be, (3) as to which the principal of and interest on the F~deral Secuntles deposited in such fund with any cash on deposit In such fund. are sufflClenr. as \'erified by an independent certified public accountant, [Q pay princIpal of. redemptIon premIUm, Ii any, and Interest on the notes or other obligations on the matunty date or dates thereof or on the redempnon date or dates specified 10 such lrrevocable ¡nstructlons, and (4) V.hlCh are rateD In the highest raung catego1Y' of Standard & Poor's and of Moody's Investors Se:-\'Jce established Accoun shall mean the Notes Payment "Note-s Pavment Accoun to Section 4.4 hereof, pursuan t "Outstanding" shall mean all Notes theretofore and thereupon beIng authenucated and delIvered, except (1) any NOle in lieu of wruch another Note or other Notes have bee;'\ Issued under an agreement to replace lost, mutilated or destro}'ed Nares. (2) an) t\;"ole surrendered by the Holder thereof in exchange for another Note or other NOles under Secnons ~6 and 2_8 hereof, (3) Notes deemed to have been paid pursuant to Section 9.1 hereof. and (4) Notes canceled after purchase in the open market or because of payment at or redempnon pnor (46 (214 88 out in (11) the oblIgauons to pa) )fC¡, 4 or 5 of the FIrst "Project" shalJ mean the acqulSluon, constructIon. Installation. renovation or recor.struC!Jon of addluons. extensIOns and Improvements to the System, as more panl(ujar:~ de)cnbed In and m accordance wIth certam plans on file or to be on file wIth [:"Ie Issuer v.lln such changes. deletJøns, additIons or modltìcauons to the enumeratea Imprmement). equipment and tac¡]¡tle~. or such other Improvements as shall be desIgnated and appro\ed b: Supplemental ResolutIon Jß accordance wIth the Act. "Pnor LIen ObligatIons" shall mean (i) the Loan and an~ amounts that may become due under and pursuant to SectIons SL:ppiement.aJ Loan Agreemen "PaYing Agent" shall mean any paYIng agent for the Notes appoIntee b: or pu~suant to Supplemental ResolutIon and its successO!'s or assigns. and any other Person whJCh may at a.ny tlme be substituted in its place pursuant to Suppìemenral ResolutIOn. -Pledged Funds" shall mean (i) the proceeds to be denved by the Issuer from the sale of the Bonds. (ii) the proceeds lO be denved by the Issuer from the sale of any addltJonaJ Senes of Notes ISSUed to extend and renew the mdebtedness eVldenced by a Senes of Notes, 1111) the Pledged Revenues and (iv) unn] applied m accordance wIth the pronsions of thIS ResolutIon. ¡he proceeds of the Notes and all moneys. mcludmg mvestments thereof. in the funds alld a..:counts establIshed hereunder, except the Rebate Fund: provided. however. that as of a!l_~ pan.lCu!ar date the amount of moneys on deposIt In the ImpacI Fees Fund whIch ma\ be applied !(\ pay the pnnclpal of or RedemptIon Pnce. If applicable. and mteres! on the Notes shan not exceed the Impact Fees Debt ServIce LImIt "Project CertifIcate" shall mean that certIficate of the QUall!¡ed Independen! Consultant fiied WIth the Issuer at or pnor to the delivery of any Senes of Notes Jssued y.hoU~ or In part to finance or refinance Expansion Facilities setting forth the esnmatee total cost of the proJecl. the estimated cost of the ExpanslOn Facilities portIon of the Project and the ExpansIOn Percentage shall mean an mdlvidual, a corporal1on, a pannershlp. an aSSoCIatiOn trust, any unmcorporated orgaruzanon or governmental enury "Person stock company, Jom 780,000 277 , 656 3 8 371 301 615,629 3,780,000 7.360,656 Bonds and Other Long-Term Liabilities Payable From Operating Revenues Total Equity PublIc Service Tax" shall mean the excIse t.a..1.: levIed and coHeeted by the e on e\'en purchase of electncny, metered or bottled gas ¡natural. l1qu¡f1ed petroiel1rr. ga~ or manufactured I. water servIce and teiecommumcauon servIce WIthin the corporate temrona; :¡mlls. of the Issuer pursuant to the prov1sIons of nonemergency Ordlrìance :'\;0_ 1St: duj~ enactec "Excise Taxes Fund" Section 4.4 hereof. hall mean the ExCIse Taxes Fund established pursuant to "Impact Fees" shall mean all non-refundable (except at the opnon of the Issuer¡ system development fees, capital expansion fees, UtilIty improvement fees or other similar fees and charges separately imposed by the Issuer upon new customers of the System as a nonuser capacity charge for a proportIonate share of L~e cost of the acquisition or conSU1Jcuon of ExpansIOn Facilities. which are imposed by the Issuer for the purpose of allocating to such s lev;. "Debt ServIce ReqUirement" for any Note Year shall me4Jl the aggregate amount reqUired to pay the interest becoming due on the Notes during such Note Ye.l1', except to the extent that such lOterest shall have ~~n provlded by payments mto me Notes Payment Account of ~ote proceeds or other sources for a specified penod of Ume For purposes of thIs deÚn¡tlD:'L t.he Interest due on any such Notes which shall have a vanable rate of Interest shall be assumed. to be t~e greater of ta) 110% of the daily avernge mterest rate on such Vanable Rate !'oates dunng the 1:2 months ending with the month preceding the date of calculatJOn. or such shoner penod that such Notes shal} have been outstanding, or (b) the actual rate of interest borne by such Variable Rate NOles on the date of calculation, "ExCISe Taxes" shall mean toe proceeds and collection of its Public Service Tax to be denved b he ue by reasor. 0 "Gross Revenues" shall mean alllOcome and moneys. excludIng Assessments a.'1d Impact Fees. receIved by the Issuer trom the Rates. or oUlerw'lse receIved by the Issuer or accruIng to the Issuer in the management and operation of the System. calculated m accordance wHh generally accepted accountmg pnnclpies employed in the operatIon of public utility systems slmilar to the System, mcludmg. WIthout iimitmg the generalIty of the ioregomg. aU earmngs and Income denved from the mvestment of moneys under the provJsions of thIs ResoiutlOn \.\, hlCr. are transferred to the Revenue Fund a5 herein provided. Credit Facility" shall mean as to any parucular Senes of Notes, a leaer of credit, a hne of credit or another credit or liquidity enhancement facility (other than an Insurance policy SSiJed by an Insurer). as approved in the Supplemental Resolution providing for the Issuance of uc~ !'."otes unctlO:1 "Fiscal Year" shall mean the period commencmg on October 1 of each year and contInuing through the next succeeding September 30, or such other penod as may be prescribed tn ¡a\l, 'GovernIng Bod Y hall mean the Cay Councll of he ue or s uccessor Jr, "Credit Bank" shall mean as to any particular Series of Notes. the Person (other than an Insurer) provIding a letter of credit, a line of credit or another credit or hquidit) ennancemen[ facility, as designated in the Supplemental Resolution providing for the issuance (If such Notes "First Supplemenlal Loan AgreementM shall mean that certain First Supplemental Loan Agreement. dated as of July 1, 1993, between Sun Bank, National Association. as trustee. Lane Gdchnst, Mayor, City of Gulf Breeze, Florida. as admmistrator, and the Issue The City of Clermont, together with several other cities in Lake County, has disagreed with Lake County over the amounts charged the cities for disposal of its solid waste at the County's incinerator. In an effort to force the County to resolve the matter, the City on January 28, 1992, authorized the withholding of a portion of the County's solid waste tipping fee representing amounts the City believes they were overcharged beginning March 1, 1991. The City has established ,a separate escrow account to accumulate the difference between the county charges and the City's payments. In November, 1993, the county revised its billing and as a result the City discontinued withholding any portion of these fees. It is anticipated that the county will attempt collection of only $5.276 of the withheld amount. rated Poor MCost· when used In connection with the Project. shall mean (1) the Issuer's cost of physical construction; (2) costs of acquisition by or for the Issuer of such ProJect; (3) costs 0:' ¡and and interests therein and the cost of the Issuer incidentallo such acquisition: (4) the cost of any indemnity and surety notes and premiums for insurance during construction: (5) all ¡merest due to be paid on the Notes and other obligations relating to the ProJect dunng the constructIon penod of such PrOject and for a reasonable period thereafter: (6) engmeenng. legal and other consultant fees and expenses: (7) costs and expenses incidental to the issuance of the :\otes IOcludlOg note Insurance premIum, rating agency fees and the tees and expenses of an~ auditors. msurers, Paymg Agent, Registrar, Credit Bank or depoSllOry; (8) payments, when due (whether at the maturity of principal or the due date of interest or upon redemption) on any lnaebtedness of the Issuer (other than the Nores) incurred for such Project: (9) costs of machInery or equipment required by the Issuer for the commencement of operatIOn of such ProJect: and (0) any other costs properly attributable to the Issuance of the Notes. and such construction or acqumtion. as determined by generally accepted accounting pnnclples and may IncJude reImbursement to the Issuer for any such items of Cost heretofore paId by the Issuer :\!1~ Supplemental ResolutIon may provide for additional Items to be included In the afores.aJd Cost~ "Feder2.l SecuDues" shall mean dlfect obligatIons of the United States of Amenca and obìlgatlons the pnnclpal of and interest on which are uncondiuonally guaranteed by the Urnted States of America. none of whIch pennit redemption prior to marunty at the option oì the obligor Federal Secunues shall include any certificates or any other eVIdences of an ownership mterest in the aforementioned obligatIons or in specifted poruons thereof (which ma consist of specifled portions of the Interest thereon), "Expansion percentageM as applied to each Series of Notes issued wholly or In part to finance or refInance Expansion Facilities shall mean a fracuon hav10g a numerator equa: to the pnncipal amount of the Notes of such Series which are attributable to ExpanSlOn Faciliues. as shall be determined by the Qualified Independent Consultant and set forth 10 the ProJect Certificate relating to such Series, and a denominator equal to the origmal aggregate pnnClpaJ amount of all Notes of such Series, (9) ObligatIons of state or local government mumclpal bond Issuers that are n one of the two hlghest ratIng categones by Moody's Investors Service and Standard & "ExpansIOn Facilities" shall mean all those improvements. extensIOns and add1tlOnS to the System. including all lands and interests therem, franchises. plants, buildmgs, machmery, fixtures, equipment. pIpeS. mains, and all other propeny, real and personal, tangible and Intangible. which shall be constructed or acquired in order to meet the increased demand upon the System, whether actual or anticIpated, created by new users connecung LO the System "Consulting EngIneers" shall mean one or more quaÜfled and recognized consulung engineers or flrm of consultIng engineers havlI1g favorable repute. skiil and expenence with respect to the planning, construction and operation of public utillt! systems sImilar to the System, who shall be retained from ame to tlme by the Issuer (6) Wntten repurchase agreements WIth any bank. savmgs instItution or trust ompany whIch IS Jnsured by the Federal Deposit Insurance Corporauon or the Federal Sav10gs ana Loan Insurance Corporation, or wIth any broìc.er-dealer with retali cuswmers whIch fall~ under Secuntles Investors Protecuon Corporation protectIon, provIded that such repurchase agreements are fully secured by collateral described in (1) above or oblIgauons of any agency or lnstrumentalJty of the United States of America, and provided further that (A) such collateral IS held by a bank or trust company chosen by the Issuer which has no interest In tne repurchase agreement dunng the term of such repurchase agreement, (B) such coilateral is not subJect to hens or claIms of third parnes. (C) such collateral has a market value (determmed at ieast once ever)' 30 days) at least equal to the amount invested 10 the repurchase agreement. (OJ the entJl)' hoidmg the collateral has a perfected first secunty interest In the collateral for the bene!]t of the Noteholders. (E) the agreement shall be for a term not longer than 2ïO days and iF) the fa1Ìure to maintain such collateral at the level required in (C) above will require the entny holding the -:o!~ateral to llquidate the collateral. (8) Units of paruclpauon 10 the Local Government Surplus Funds establ1shed pursuant to Part IV, Chapter 218, Florida Statutes. as amended. or Dil,man [rust fund whIch IS established pursuant [0 State ìaw as a iegaJ depos¡ton (7) Money market funds Investors Service and Standard & Poor's, rated in the highest ratmg category by Trust Fund an~ s¡!T't¡)ar at pûbil(' Moodv 's Section 4 "Code" shall mean the United States Internal Revenue Code of 1986, as the same may be amended from time to time, and the regulations thereunder. whether proposed. temporary or final, promulgated by the Depanment of the Treasury. Internal Revenue ServIce, and all other promulgations of saJd service pertairung thereto, dul~ Clerk" authonzed by the "Construction Fund" shall mean the Construcuon Fund established hereof hall mean the City ssuer to act on hIS Clerk of the or her behalf ue or uch other person as pursuam to ma)' be 3\ may be du 'City Manager" shall mean the Clty Manager of the Issue authorized by the Issuer to act on hIS or her behalf. or cr, other person 19 Other Matters Senes 2CX>O. "Bonds" shall mean the Issuer's Water and Sewer Revenue and Refunding Bonds, or such other bonds issued by the Issuer to refund the Notes. The City is not aware of any pending or threatened litigation which would not be covered by insurance the ue "Bond Reso1uuonM shall mean the resoluuon adopted by the GovernIng on February 13, 1996, authorizlOg the ISSuance of the Bonds, Body of "Bond Counsel" shall mean any attorney at law or firm of attorneys, of natIonal!~ ·ewgmzec standlng 10 matters pertalmng to the federal tax exempnon of Interest on obligauons sSue(] by states and poliùcal subdlvlsions. and duly admitted to practice law before the hlgnest CO\.ln of any state of the Unlled States of America. (5) Commercial paper rated in one of the two highest ratmg categones by at ie.aS: two natlonal!y recogmzed raung agencies or commercial paper backed by a letter ot' cred¡t ur :Ine of credit i'ated In one of the twO highest rating categories by Moody·s Investors Sef\.'\ce and Standarè & Poor's 18 Contingencies "Available Impact Fees" shall mean the Impact Fees to the extent that such ìee~ or charges have been iawfully levIed and collected by the Issuer and may under applicable la\.\, be used for the acqUlsiuon or construction of the ExpanSIon Facilines or for Impact Fees Debt ServIce Components. (4) The followlOg ¡nvestments fully lßsured by the Federal DeposIt Ins:Jrance CorporatIon or the Federal Savmgs and Loan Insurance Corporanon: (A) ceruÙcates of deposIt IB1 sa',.ings accounts, (C) deposit accounts. or (D) depository receipts of a bank. 5anngs and lOan aSSOCIatIOn or mutual savings bank. Authonz.ed Issuer Officer" for the performance on the Dehalf of the Issuer at an\ ac: of ~he Issuer or the executIon of any instrument on behalf of the Issuer shal; mean <lIlY perso~ authonzed b)' resolutIon or cerufIcate of the Issuer to perform such act or slgn such documen: CITY OF CLERliONT, FLORIDA NOTES TO THE FINANCIAL STATEMENTS (3) Certificates of deposIt properly secured.... .lmes by collateraJ secûnly descnbed ¡n either or both of paragrnphs (l) and (2) of this deflmtion or ¡n the collateral pro\'JSlons of Chapter 280, Florida Statutes, as amended. and iSSUed by commerCJal banks. sa\'lngs and loan associatlons or mutual savings banks chartered by the State or the United States of Amenca. and bank trust receiptS issued by commercial banks or trust compames chartered b~ tne State or the United States of Amenca upon any secuntIes described 10 paragraph (1) oî t~;s, òefimtlon w¡thm ue uch by the Rating categories when referred to herein categones. such as "plus· or -minus.· (10) laws of .h other obliganons as shall be pennmed the5tate shall be wIthout regard to gradauons to be legal Investments of he -- . GOVERNMENTAL FUND TYPES 28 28 29 30 30 33 3J 34 35 3S 35 35 36 36 36 p 38 38 38 38 39 39 39 39 JO JO JO ARTICLE 4 SECURITY, SPECIAL FUNDS A1'.1J APPLICATION THEREOF Gene:al Sale of Bonds or Refundmg Notes. Operanon and Mamtenance Annual Budget Rates Books and Re<:ords Annual Audit !'Jo Mongage or Sale of the System Insurance No Free Service No Impairment Compulsory Connections Enforcement of Charges . Collecuon of Impact Fees Consulting Engmeers Levy of ExcIse Taxes Covenants With Credit Banks and Insurer Federa.llncome Tax Cove.na.ms; Taxabk Note Continumg DIscJosure ssue of ARTICLE 5 COVENANTS . Notes not to be lndebtedne Secumy for Notes ConstructIon Fund Funds and Accounts Flow of Funds, Rebate F unct Investments Separate ACCQun SectlOn 4 Seenon 4 _ 2- Secoon 4.3 SectJOn 4.4 SectIon 4.5 Seetlon 4.6 SectJor: 4.7 Section 4.8 Section 5.1 Se~llon 5,~ Section 5.3 Sectlon 5.4 Seellor. ~ 5 Section 5 _ 6 Secl1or. 5.7 Sectlor. 5,8 Section 5.9 SeeDon 5,10 SectlonS.II Sectior:S.12 Se<:tJon 5,13 Section 5.14 Section 5,15 SectiOn 5. 16 Section 5.1 ï Sectlon 5. t8 Section 5.19 PAGE iJ IJ 15 16 16 16 17 ]ê 18 :0 26 26 :28 . TABLE OF CO¡"'TE1,'TS ARTICLE 1 GENERAL Se':~iOn 1.1 DeftnItIons SectIon 1.'2 Authority for Resolution. SeçUl)fl 1.3 ResoJuuón to ConstItute Contract :"ec!J(1r, 14 Fmdmgs Se,-'UOfl 1.5 AuthonzatIon of Project SI.",-·::D!1 ¡.f Authon12non of Refundmg "'ç~'.!i.H~ ; - Reru:larng of Refunded Obllgauons ARTICLE 2 AUTHORlZATION, TERMS, EXECUTION AND REGISTRATION OF NOTES Sc-ctlOn ::. I Authonzauon of Notes Se..::tJOn :,: DescnptIon of Senes 1996 Notes Selllon :.3 Apphcauon of Series 1996 Note Proceecis :)ec!:on 24 ExecutJon of Notes Section 2.5 AuthentIcation SectJon 2,6 Tempora..."Y Notes Sectlon 2.7 Notes Mutilated, Destroyed, Stolen or Lost SectiOn 2.8 Interchangeability, Negotiability and Transfe: SectJOn :,9 Form of Note:> ARTICLE 3 REDEMPTION OF NOTES Pnvdege of Redemptlon Selecuon of NOles to be Redeemed Notice of RedemptIon RedemptJon of PortIons of Note: Payment of Redeemed Notes Seclion J.] Section 3.: Sectlon 3.3 SectJon 3.4 Secnofl 3.5 ARTICLE 6 SUBORDINATED INDEBTEDNESS No Additional OblIgatIons Subordmated lndebtedne Sectlo Section THE CITY COUNCIL OF THE CITY OF CLERMONT, Secnon ~. \\'hen used in this Resoluuon, the follo~'mg terms shall ne foUowmg meamngs. unless the context clearly othervvlse reqUlres: ARTICLE GENERAL BE IT RESOL VED BY FLORIDA: J <, Jè ·0 ..L' J3 JJ ARTICLE 7 DEFAULTS AND REMEDIES Ev'ents of Defau! Remedie~ DlrectlOns to Trustee as to RemedlaJ Proceedmg Remecj¡es CumulatIve Wawer of Default Apphcauon of Moneys After Defau Control bY' Insurer or CredIt Bank Sedlor. ~t'.ct\or, Sec:lof': :- Section 4 Sectlor. 5 See '-Jon 6 Sectlor. a'e "Accountant" shall mean the independent certIfied public accountanr or tìrrr: 0 e:-t:f¡ed pub1Jc accountants at the orne employed by the Issuer under the provIsions of ,hi Reso]utJon to perform and carry Qut the duties imposed on the Accountant by thlS ResolutIon ARTICLE amended, and olne 66, Part n, Flonda Statutes, as Chapte Act" shall mean dDDlicable provIsIons of ¡a~ RESOLUTIONS SUPPLEMENTAL JJ J5 J6 Without Noteholders' Conseo With Noteholders·. Insurer's SL:pp!emental ResolutIon Supplemental Resolutlon Bank's Consent Amendment Wlth Consen ~Ior. :wn Se :>o.e he Assessments" shall mean the- proceeds to be denved from the assessments to be e\:eC agams: the lands and propenies to be specIally benefHted by the constructlon of any ¡mpro\ements to the System. Including interest on such assessments and any penaitJes thereon 2.na moneys recen·'ed upon the foreclosure of the hem. of any such assessments 10 pursuant prepared budge Annual Budgel" sha.}} mean the annual of Se.ctlOn 5.4 of ÜllS Resoluuon. remen eo. Credl and, or Creda Bank OnJ and of Insure ARTICLE 9 je..:;;U;. of Flonda to recet\'e Autnonzed Deposnory" shall mean the State Board of Admlflls:rauon uSt company 10 the State which IS el1gible under the laws of the Slate ue' O~ a ba.:u, 0 C~ or' the shalJ be he Issue Dm~c! obÌJgatlons of (¡ncludlng obhgatlons Issuec or held :n bcx1k en¡~ I(VIT. e bOOKS of the Department of the Tre.a~uf! or the l"n][ec S[3!es or Ameí1ca and st:¡ppcc and zero coupon obj¡ga!Jon~). or obl1gatJons the pnnclpal of and Interest on ~hlCr, are ~"'l.or\\.1H\or.a.\\:-- g.uaranteed by. lhe Umted. States of Amenca Autt10nzed InveStments" shall mean an:- of the fOJJowlflg I.I.h¡ch å¡';;~,c.;¡ze.d frum lirTH: tù !Jmt by dppiJcabie iaws or tlle State ror de XIslt or purcnase b ¡or the inVeStment of ItS funds . 48 J9 J9 J9 J9 JO 50 5(1 50 MISCELLANEOl'S Statement Pa...'1 Hereof Defe.asanc A.ppro\'al of Prelm',lnary OffJç¡aJ General AumOnty No Personal LIability :\0 Third Party Benef¡Clanes Saie of Notes SeverabilIty of InvalId ProvIslOn~ RepeaJ of 1nconsment ResolutIon Table of Contents and Headmgs no EffectJ ve Date Sec;;o~ 9 ¡ Se':':ior. Y : SeClon 9.3 Stc!!on 94 SectIon 9.5 Section 9 6 ~ectlor. ~,.... SectJon 98 Se(ïJOn 9 '9 Se(~JClr. Q 1 n (2) Bonds. debentures or notes or other evidences of Indebted!1ess pa~'abje in ash lSSlIed b~ an~ one or a comblna.tion of any of the foUowmg federaJ agencIes whose oblIgatIOns represent the full fanh and credl! of the Unned States of Amenca: Expon Impon Bank of :he United States. Federal Fmancmg Bank. Farmers Home AdminIstration. FederaJ Housing AdmmJstratlon, Marmme AdmmistratIon, Public Housmg Authorit:- and Gov'ernmen \"a~ronaJ Mortgage Associarion. Official Statement I Form of Prejlm¡nar: A ,b: E THIS PAGE INTENTlONALL Y lEFT BlANK A RESOLUTION OF THE CITY OF CLERMONT, FLORIDA, PROVIDING FOR THE REFUNDING OF CERTAIN OUTSTANDING OBLIGATIONS OF THE CITY AND THE ACQUISITION, CONSTRUCTION AND INSTALLATION OF CERTAIN ADDmONS, EXTENSIONS AND IMPROVEMENTS TO THE WATER AND SEWER FACILITIES OF THE CITY'S COMBINED MUNICIPAL WATER AND SEWER SYSTEM; AUTHORIZING THE ISSUANCE BY THE CITY OF NOT EXCEEDING $8,500,000 IN AGGREGATE PRINCIPAL AMOUNT OF WATER AND SEWER REVENUE AND REFUNDING BOND ANTICIPATION NOTES, SERIES 1996, TO FINANCE APART OF THE COST THEREOF IN ANTICIPATION OF THE ISSUANCE BY THE CITY OF WATER AND SEWER REVENUE AND REFUNDING BONDS, SERIES 2000; PLEDGING TO SECURE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SUCH NOTES CERTAIN PLEDGED FUNDS INCLUDING THE PROCEEDS TO BE DERIVED BY THE CITY FROM THE SALE OF SUCH BONDS, THE NET REVENUES OF SUCH SYSTEM, CERTAIN MUNICIPAL EXCISE TAXES, ALL MONEYS ON DEPOSIT IN AND INVESTMENTS HELD FOR THE CREDIT OF CERTAIN FUNDS CREATED HEREUNDER AND THE EARNINGS ON SUCH INVESTMENTS; MAKING CERTAIN COVENANTS AND AGREEMENTS FOR THE BENEFIT OF THE HOLDERS OF SUCH NOTES; APPROVING A FORM OF PRELIMINARY OFFICIAL STATEMENT WITH RESPECT TO THE SERIES 1996 NOTES; AND PROVIDING AN EFFECTIVE DATE. APPENDIX C NOTE RESOLUTION RESOLUTION NO. 900 . - GENERAL FUND The General Fund accounts for all revenues and expenditures of the City which are not required to be accounted for in other funds. It greater variety and number of taxes and other general other fund. receives a revenues than any 1994 ---- $ 710,555.04 32,329.50 - ---------_. 742,884.54 -, ---------_. 180,169.18 97,036.33 59,599.92 68,206.28 31,012.86 30,433.36 12,355.57 4,891.11 157,874.64 -, ----------. 641,579.25 -, ----------. 101,305.29 -, ---------_. 38,157.80 (179,471,03) -. ------------ (141,313.23) -. ------------ (40,007.94) -, ------------ 2,603,823,68 -, ------------- $ 2,563,815.74 ------------------ ------------------ . CITY OF CLERMONT, FLORIDA e SEWER FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE YEAR ENDED SEPTEMBER 30, 1995 WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994 1995 ---------- OPERATING REVENUES Charges for serVlces $ 785,363.55 MisceLLaneous revenues 484.60 ------------------ Total operating revenues 785,848.15 ------------------ OPERATING EXPENSES Personal services 211,421.31 Util ities 110,145.80 Administrative services 61,400.04 Repair and maintenance 75,508.51 ProfessionaL services 34,230.19 Insurance 14,321.40 Operating suppLies 23,606.38 Office expense 7,313.86 Depreciation 156,966.49 ------------------ TotaL operating expenses 694,913.98 ------------------ Operating income 90,934.17 ------------------ NONOPERATING REVENUES (EXPENSES) Interest income 81,175.88 Interest expense (151,973.13) ------------------ Total Nonoperating revenues (expenses) (70,797.25 ) ----------------- Net Income 20,136.92 ----------------- Retained Earnings/Fund Balance, beginning of year 2,563,815.74 ----------------- Retained Earnings/Fund Balance, end of year $ 2,583,952.66 ------------- ------------- The accompanying notes to financial statements are an integral part of this statement CITY OF CLERMONT. FLORIDA GENERAL FUND COMPARATIVE BALANCE SHEET SEPTEMBER 30. 1994 AND 1993 ASSETS 1994 ------ ... ...... ... Cash and cash equivalents $ 633,148 Investments 514,014 Receivables: Accounts 17,266 Interfund 28,423 Due from other governments 31,887 Inventory 9,714 - ------- TOTAL ASSETS $ 1,234,452 LIABILITIES AND FUND BALANCE .............................. --.............. -- -- ----..... Liabili ties: Accounts payable $ 27,099 Payroll related accruals 24,168 Interfund payables 34,904 ----------- Total Liabilities 86,171 ----------- Fund Balance: Reserved for streets 13 , 309 Reserved for police education 14,535 Reserved for inventory 9,714 Reserved for recreation 18,607 Unreserved. designated for capital replacement 3,635 Unreserved, undesignated 1,088,481 ----------- Total Fund Balance 1,148,281 ..---------- TOTAL LIABILITIES AND FUND BALANCE $ 1.234.452 1993 ... .. ..... $ 564,427 536,996 12,638 4,694 60,970 9,843 - ------- $ 1,189,568 $ 16,456 20,317 25,084 ----------- 61,857 ----------- . . . 11,482 9,843 18,607 3,635 1,084,144 ----------- 1,127,711 ----------- $ 1.189.568 CITY OF CLERMONT, FLORIDA SEWER FUND COMPARATIVE BALANCE SHEET September 30, 1995 and 1994 1995 ------ TOTAL LIABILITIES $ 3,317,827,86 ----------------- FUND EQUITY Fund equity Contributions 2,879,661,45 Retained earnings 2,563,815,74 Excess (deficiency) of revenues over expenditures and other sources (uses) 20, 136. 92 ----------------- TOTAL FUND EQUITY 5,463,614.11 ----------------- TOTAL LIABILITIES AND FUND EQUITY $ 8,781,441.97 ------------- ------------- The accompanying notes to financiaL statements are an integraL part of this statement 1994 ---- $ 2,600,357,10 ----------------- 2,673,183,25 2,603,823.68 (40,007,94 ----------------- 5,236,998.99 ----------------- $ 7.837.356.09 e . CITY OF CLERMONT, FLORIDA GENERAL FUND STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1994 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30 1993 VARIANCE FAVORABLE 1993 BUDGET ACTUAL (UNFAVORABLE) ACTUAL ------ -----.. ------------ -----... Revenues: Taxes $ 1,512,300 $ 1,620,524 $ 108,224 $ 1,457,648 Licenses and permits 40,000 39,910 (90) 40,054 Intergovernmental revenues 484,400 505,432 21,032 507,888 Charges for services 186,150 195,652 9,502 189,326 Fines and forfeitures 74,000 91,066 17,066 75,224 Miscellaneous revenues 137,857 112,300 (25,557) 136,298 ----------- ----------- ----------.. ----------- Total Revenues 2,434,707 2,564,884 130,177 2,406,438 ----------- ----------- ----------- ----------- Expenditures: General government 571,700 574,783 (3,083) 595,895 Public safety 1,002,826 1,017,962 (15,136) 997,295 Physical environment 147,680 147,934 (254) 141,013 Transportation 279,012 253,346 25,666 277 ,691 Economic environment 15 , 715 14,065 1,650 10,792 Human services '17,478 17,034 444 15,317 Culture and recreation 591,602 555,294 36,308 501,764 ----------- ----------- ----------- ----------- Total Expenditures 2,626,013 2,580,418 45,595 2,539,767 ----------- ----------- ----------- ----------- Excess (Deficiency) of Revenues Over Expenditures (191,306) (15,534) 175,772 (133,329) ----------- ---...------- ----------- ----------- Other Financing Sources (Uses): Operating transfers in 113,309 73,611 (39,698) 71,131 Operating transfers out (34,000) (37,507) (3,507) .. . ----------- ----------- ----------- ----------- Total Other Financing Sources (Uses) 79,309 36,104 (43,205) 71,131 ----------- ----------- ----------- ----------- Excess (Deficiency) of Revenues over Expenditures and Other Sources (Uses) (111,997) 20,570 132,567 (62,198 Fund Balance October 1 1,127,711 1,127,711 .. . 1,189,909 ----------- ----------- . ------- ----------- FUND BAl.AJ.~CE SEPTE..\ffiER 30 $ 1. 015 . 714 $ 1.148.281 $ 132.567 $ 1.127.711 1994 ---_. $ 28,174.21 59,115.77 .. . 571,202.73 ---- ---------- 658,492.71 ---- ---------- 241,389.42 ,154,212,34 ---- ----------- ,395,601.76 ---- ----------- 5,615,952.20 ----------------- 5,615,952,20 ----------------- 167,309.42 .---------------- 167,309.42 .---------------- $ 7,837,356.09 ----------------- ----------------- $ 84,435.41 --------------- 84,435,41 --------------- 152,954.00 --------------- 152,954,00 --------------- 2,362,967.69 " . --------------- 2.362.967,69 . - CITY OF CLERMONT, FLORIDA SEWER FUND COMPARATIVE BALANCE SHEET September 30, 1995 and 1994 1995 ------ ASSETS ------ Current Assets ReceivabLes $ 94,306.53 Due from ... Other assets 2,662.00 Investments 612,569.23 ----------------- TotaL Current Assets 709,537.76 ----------------- Restricted Assets Cash 244,866.08 Investments 284,603.16 ----------------- TotaL Restricted Assets 529,469.24 ----------------- Fixed Assets Fixed assets 7,382,509.95 ----------------- TotaL Fixed Assets 7,382,509.95 ----------------- Other Assets Other assets 159,925.02 ----------------- TotaL Other Assets 159,925.02 -----------------. TOTAL ASSETS $ 8,781,441.97 ----------------- ----------------- LIABILITIES AND FUND EQUITY ---------------------------. LIABILITIES Curr Liab (from Curr Assets) PayabLes $ 50,328.20 ----------------- TotaL Curr Liab (from Curr Assets) 50,328.20 ----------------- Curr Liab (from Restr Assets) PayabLes 403,289.27 ----------------- TotaL Curr Liab (from Restr Assets) 403,289.27 ----------------- Long-Term LiabiLities PayabLes 2,860,031.71 Advances From Other Funds 4,178.68 ----------------- TotaL Long-Term LiabiLities 2,864,210.39 ------------- The accompanying notes to financiaL statements are an integraL part of this statement CITY OF CLERMONT, FLORIDA GENERAL FUND SCHEDULE OF REVENUES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1994 TJITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30 1993 VARIANCE FAVORABLE 1993 BUDGET ACTUAL (UNFAVORABLE) ACTUAL ------ ------ -------...---... ---...-- Taxes: Ad valorem $ 515,000 $ 494,857 $ (20,143) $ 453,252 Local option gas tax 157,800 161,247 3,447 155,611 Franchise fees 333,800 370,274 36,474 332,752 Utility taxes 505,700 594,146 88,446 516,033 -...--------- --...-------- ------...--- ...-----...-...-- Total 1,512,300 1,620,524 108,224 1,457,648 ---...---...--- --...-------... ...-----...--- ----...-...---... Licenses and Permits: Professional and occupational 18,000 18,927 927 18,266 Other permits 22,000 20,983 (1,017) 21,788 ...--...-----...- ----------... ----...-...-...- ..-------...-... Total 40,000 39,910 (90) 40,054 ----------- ----------- ---------- ...-----...-...-.. Intergovernmental revenues: Two-cent cigarette tax 28,600 28,990 390 30,326 State revenue sharing 143,000 152,240 9,240 160,933 Mobile home licenses 11 , 000 9,231 (1,769) 11,270 Alcoholic beverage licenses 5,000 6,869 1,869 4,430 Half-cent sales tax 233,000 240,215 7,215 223,820 Motor fuel tax rebate 4,800 4,877 77 5,117 Municipality share of county occupational licenses 15,000 15,455 455 14,400 Municipality share of one-cent voted gas tax 44,000 47,555 3,555 45,528 Special fuel tax . .. . . . . . . 96 Grants . . . . . . . . . 11,968 ......----- --...-...-.....--- ---------- --------...-... Total 484,400 505,432 21,032 507,888 --...-...-...---- ...--------- ...---------- Continued CITY OF CLERMONT WATER FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE YEAR ENDED SEPTEMBER 30, 1995 WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994 1995 ---------- Retained Earnings/Fund BaLance, end of year $ 2,238,795.15 ------------------ ------------------ The accompanying notes to financiaL statements are an integraL part of this statement 1994 ------- $ 1,878,406,16 ---- e . CITY OF CLERMONT, FLORIDA GENERAL FUND SCHEDULE OF REVENUES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1994 TJITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30 1993 VARIANCE FAVORABLE 1993 BUDGET ACTUAL (UNFAVORABLE) ACTUAL ..---..- ------ ----------.-- ...----- Charges for Services: Program activity fees $ 28,900 $ 38,402 $ 9,502 $ 36,661 Administrative service fee 157,250 157,250 .. . 152,665 ---...------- ----------- ----------- -..--------- Total 186,150 195,652 9,502 189,326 -----..----- ---------..... ----------- ----------- Fines and forfeitures Court fines 70,000 84,231 14,231 69,385 Police education 2,500 3,456 956 2,680 False alarms 1,500 1,480 (20) 2,160 Confiscations .. . 1,899 1,899 999 -----..----- ----------- ----..------ ----------- Total 74,000 91,066 17,066 75,224 ----------- ......-------- ----------- ----------- Miscellaneous: Interest 48,000 7,711 (40,289) 55,968 Rentals 22,712 24,651 1,939 10,210 Memorial sales 1,000 2,945 1,945 819 Surplus equipment sales 1,500 3,834 2,334 15,565 Contributions 11 , 900 14,988 3,088 16,843 Reimbursements 46,745 52,438 5,693 32,425 Other miscellaneous 6,000 5,733 (267) 4,468 ----..-----.. ----------- ----------- .---------- Total 137,857 112,300 (25,557) 136,298 ..---------- ...---------- ----------- ----------- TOTAL R...k'VENUES $ 2.434.707 $ 2.564.884 $ 130.177 $ 2.406.438 1994 ------- $ 484,259.23 490,74 ------------ 484,749.97 ------------. 136,099.53 57,481.06 43,350.00 134,603.17 41,090.10 30,433.36 20,047.49 9,828.00 116,850.47 ------------. 589,783,18 ------------. (105,033.21 ) ------------- 49,478.78 . .. (72,419.42) ------------- (22,940.64) ------------- (127,973.85) ------------- (46,602.11) ------------- (46,602.11) ------------ (174,575,96 ------------ 2,052,982.12 . CITY OF CLERMONT -- WATER FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS FOR THE YEAR ENDED SEPTEMBER 30, 1995 WITH COMPARATIVE TOTALS FOR SEPTEMBER 30, 1994 1995 ---------- OPERATING REVENUES Charges for services $ 630,991 . 19 MisceLLaneous revenues 12,435.25 ------------------ TotaL operating revenues 643,426.44 ------------------ OPERATING EXPENSES PersonaL services 151,863.43 UtiLities 66,393.43 Administrative services 44,649.96 Repair and maintenance 45,883.42 ProfessionaL services 36,373.25 Insurance 15,192.40 Operating suppLies 37,506. 12 Office expense 12,426.14 Depreciation 124,862.83 ------------------ TotaL operating expenses 535,150.98 ------------------ Operating income 108,275.46 ------------------ NONOPERATING REVENUES (EXPENSES) Interest income 58,729.03 Grants/donations 323,314.03 Interest expense (68,911.63) ------------------ TotaL Nonoperating revenues (expenses) 313,131.43 ------------------ Income before operating transfers 421,406.89 ------------------ OPERATING TRANSFERS Operating transfers out (61,017.90) ------------------ TotaL operating transfers (61,017.90) ----------------- Net Income 360,388.99 ----------------- Retained Earnings/Fund BaLance, beginning of year 1,878,406.16 ------------- The accompanying notes to financiaL statements are an integraL part of this statement Total General Government Services 571,700 ----------- 574,783 ----------- (3,083) ----------- Continued 595,895 ----------- 16,700 ----------- 29,905 ----------- 13 , 205 ----------- 85,355 ----------- Total Other Government Other General Government Operating expenses Capital outlay General 16.700 25,178 60 , 177 ----------- 29.905 13.205) Total Planning and Zoning Planning and Zoning Personal services Operating expenses Capital outlay 170,494 ----------- 116,084 47,410 7,000 ----------- 152,952 ...---------- 105,467 41,061 6,424 ----------- 17,542 ----------- 10,617 6.349 576 138,295 ----------- 106,059 31.711 525 Legal Counsel Operating expenses 11,050 ----------- 9,976 ----------- 1,074 ----------- 224,775 ----------- 235,922 ----------- (11,147) ----------- 10,650 ----------- 229,666 ----------- Total Finance and Administrative Finance and Administrative Personal services Operating expenses 168,865 55,910 ----------- 173,587 62,335 ----------- (4,722) (6,425) ----------- 168,817 60,849 ----------- Total Executive City Manager Personal services Operating expenses Capital outlay 126,156 ----------- 105,306 8,850 12,000 ----------- 124,350 ----------- 103,906 8,464 11,980 ----------- 1,806 ----------- 1.400 386 20 110,666 ------....---- 99,473 7,930 3,263 ----------- Total City Counc il Personal services Operating expenses General Government Services ílI TH CITY OF CLERMONT, FLORIDA GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1994 COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30 1993 CITY OF CLERMONT WATER FUND COMPARATIVE BALANCE SHEET September 30, 1995 and 1994 1995 ------ TotaL Long-Term LiabiLities $ 3,842,972,65 ----------------- TOTAL LIABILITIES 4,146,553.29 ----------------- FUND EQUITY Fund equity Contributions 336,707.34 Retained earnings 2,238,795.15 ----------------- TOTAL FUND EQUITY 2,575,502.49 ----------------- TOTAL LIABILITIES AND FUND EQUITY $ 6,722,055.78 ------------- ------------- The accompanying notes to financiaL statements are an integraL part of this statement Legislative 22,525 ----------- $ 20,700 1,825 ----------- BUDGET 1994 ---- $ 965,155,67 ---------- 099,419,80 ---------- 245,251,77 ,878,406,16 ----------- 2,123,657.93 ------------ $ 3,223,077.73 ------------------ ------------------ 21,678 ----------- $ 20,632 1,046 ----------- ACTUAL $ VARIANCE FAVORABLE (UNFAVORABLE 847 68 779 ) 21,263 ---....------- $ 20 1993 594 669 1993 $ 698,103 110,208 124,064 ----------- 1993 VARIANCE FAVORABLE (UNFAVORABLE) 333 286) 738) 30 , , ( 4 (6 e CITY OF CLERMONT, FLORID, GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND AC'l'UAL FOR THE YEAR ENDED SEPTEMBER 30, 1994 COMPARATIVE AC'l'UAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER Public Safety Law Enforcement: Personal services Operating expenses Capital outlay $ A AC'l'UAL $ 757,329 126,461 42,172 ----------- BUDGET 761,662 120,175 41.434 $ e \JITH 932,375 --------...-- (2,691) ----------- Total Law Enforcement 29,087 29,859 5,974 ----------- (10,379) (2.072) 6 925,962 ----...-...---- 36,659 38,148 17,193 ----------- 64,920 --------...-- (12,445) ----------- 92 ,000 ----------- 997,295 ----------- (15,136) ------...---- 1,017,962 ------...---- 79,555 ----------- 1,002,826 ...---------- 70,480 61,468 9,065 ----------- 311 565) 4 (4 68,048 79.886 72,359 75.321 Physical Environment Public Works: Personal services Operating expenses Capital outlay 141,013 ----------- 128,014 140.857 8,820 ...---------- 277 , 691 ...-------- Continued 923,271 ----------- 26,280 36,076 17,199 ...---------- Total Fire Control Safety (254 5,957 19.354 355 25,666 ----------- 253,346 ......-...--...---- 279,012 ----------- Transportation Total 1994 ---- $ 62,535.25 .. . 38,559.45 16,039.94 .. . 465,253.04 - ----------, 582,387.68 - ---------- 88,807.25 390,572,19 - ---------- 479,379.44 - ---------- 2,096,538.87 ----------------- 2,096,538.87 ----------------- 64,771.74 .. , -----------------. 64,771.74 -----------------. $ 3,223,077.73 ----- ---------- ---------- $ 16,866,88 ---------- 16,866.88 ---------- 117,397,25 ---------- 117,397.25 ---------- 965.155,67 Fire Control: Personal services Operating expenses Capital outlay Public Total 147,934 -...-------- 130,705 121,046 1,595 ----------- . CITY OF CLERMONT . WATER FUND COMPARATIVE BALANCE SHEET September 30. 1995 and 1994 1995 -------- ASSETS ------ Current Assets Cash $ 13,096.74 ReceivabLes 60,954.48 Due from 96,208.21 Inventory 18,563.01 Other assets 1,922.00 Investments 449,168.42 ------------------ TotaL Current Assets 639,912.86 ------------------ Restricted Assets Cash 200,924.95 Investments 989,080.82 ------------------ TotaL Restricted Assets 1 , 190,005 .77 ------------------ Fixed Assets Fixed assets 4,821,476.35 ------------------ TotaL Fixed Assets 4,821,476.35 ------------------ Other Assets Other assets 61,607.00 Advances From Other Funds 9,053.80 -----------------. TotaL Other Assets 70,660.80 -----------------. TOTAL ASSETS $ 6,722,055.78 -----------------. -----------------. LIABILITIES AND FUND EQUITY ---------------------------- LIABILITIES Curr Liab (from Curr Assets) PayabLes $ 85,869.51 -----------------. TotaL Curr Liab (from Curr Assets) 85,869.51 ----------------- Curr Liab (from Restr Assets) PayabLes 217,711.13 ----------------- TotaL Curr Liab (from Restr Assets) 217,711.13 ----------------- Long-Term LiabiLities PayabLes 3,842,972.65 The accompanying notes to financiaL statements are an integraL part of this statement 147,680 ----------- 136,662 140,400 1,950 ----------- Total Physical Environment Transportation Road and Streets: Personal servcies Operating expense Capital outlay CITY OF CLERMONT, FLORIDA GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 1994 \lITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30 1993 VARIANCE FAVORABLE BUDGET ACTUAL (UNFAVORABLE) 1993 ------ ------ --------..---- ... ... ... ... Economic Environment: -------------------- Economic Development: Operating expenses $ 9,215 $ 9,494 $ (279) $ 10,792 Capital outlay 6,500 4,571 1,929 . .. ...---------- ----------- ---------- . . ------- Total Economic Environment 15 , 715 14,065 1,650 10,792 Human Services: -------------- Animal Control: Personal services 11,463 11,298 165 10,057 Operating expenses 6,015 5,736 279 5,260 ----------- ----------- ---------- ----------- Total Human Services 17,478 17,034 444 15,317 ----------- ----------- .---------- ----------- Culture and Recreation: --------------------- Library: Operating expenses 77 ,771 78,288 (517) 64 , 871 Debt service 7,400 7,365 35 7,612 ----------- ...---------- ..---------- ----------- Total Library 85,171 85,653 (482) 72,483 ----------- ----------- ----------- ---...------- Parks and Recreation: Personal services 265,556 230,840 34,716 223,855 Operating expenses 179,250 191,591 (12,341) 156,383 Capital outlay 61,625 47,210 14,415 49,043 ----------- ----------- ----------- ----------- Total Parks and Recreation 506,431 469,641 36,790 429,281 ----------- ----------- ...---------- ----------- Total Culture and Recreation 591,602 555,294 36,308 501,764 ----------- ----------- ...---------- ----------- TOTAL EXPENDITURES $ 2.626.013 $ 2.580.418 $ 45.595 $ 2.539.767 [This page Intentionally left blank] e - . . This report is intended solely for the information and use of the governing body and management of the City of Clermont, Florida and for filing with William R. Hough and Company. This restriction is not intended to limit the distribution of this report, which is a matter of public record. d~u- A /~ ~ PA Clermont, Florida January 21, 1996 SPECIAL REVENUE FUNDS The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trust, or major capital projects) that are legally restricted to expenditure for specified purposes. Certain administrative expenses are paid by the General Fund. INFRASTRUCTURE FUND To account for the proceeds of the Local Government Infrastructure Surtax to be received by the City until the end of Fiscal Year 2002. The proceeds and interest accrued thereto, by law are only to be used to finance, plan and construct infrastructure. Impact Fees collected from IMPACT FEE FUND To account for the Recreation, Police and Fire new developments constructed in the City. the U.S. from BLOCK GRANT FUND To account for the Community Development Block Grant Department of Housing and Urban Development. MEMBER: FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS & AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 605 Montrose Street 627 N, Donnelly Street Post Office Box 120400 . Clermont, FL 34712-{)400 Post Office Box 8 . Mount Dora, FL 32757 Telephone: (904) 394-3256 Telephone: (904) 383,6300 In our opinion, the financial statements referred to above present fairly, in all material respects, the financial positions of the Water Fund and Sewer Fund of the City of Clermont, Florida, as of September 30, 1995, and the results of its operations and changes in retained earnings for the year then ended. CITY OF CLERMONT, FLORIDA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1994 \JITH COMPARATIVE TOTALS FOR SEPTEMBER 30 1993 INFRA . IMPACT BLOCK TOTALS STRUCTURE FEE GRANT ------ ASSETS FUND FUND FUND 1994 1993 ------ .. ... ... ... .. ... .. ... .. ... ... ... ... ... ... ... ... ... ... ... Cash and cash equivalents $ 55,023 $ 62,063 $ . .. $ 117,086 $ 183,009 Due from other government 52,943 . .. . .. 52,943 47,268 Mortgages receivable .. . .. . 360,619 360,619 450,774 ...-------- --------- --------- --------- --------- TOTAL ASSETS $ 107,966 $ 62,063 $ 360,619 $ 530,648 $ 681,051 LIABILITIES AND FUND BALANCE --....................... --- --.. --... --............... Liabilities: Accounts payable $ 1,085 $ · .. $ · . . $ 1,085 $ 9,414 Contracts payable 2,598 · ., · . . 2,598 69,226 Interfund payables .. . .. . · . . . . . 61,190 Due to other government .. . · . . · . . . . . 5,044 Deferred revenue .. . · . . 360,619 360,619 450,774 --------- --------- --------- --------- --------- Total Liabilities 3,683 · . . 360,619 364,302 595,648 --------- --------- --------- --------- --------- Fund Balance 104,283 62,063 . . . 166,346 85,403 --------- --------- --------- --------- --------- TOTAL LIABILITIES AND FUND BALANCE $ 107.966 $ 62.063 $ 360.619 $ 530.648 $ 681. 051 The City has elected to omit all of the disclosures and the statements of cash flows required by generally accepted accounting principles. If the omitted disclosures and the statements of cash flows were included in the financial statements, they might influence the user's conclusions about the City's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. These financial statements present only the Water Fund and Sewer Fund are not intended to present fairly the financial position of the City of Clermont, Florida, and the results of its operations and cash flows of its proprietary fund types and nonexpendable trust fund in conformity with generally accepted accounting principles We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We have audited the balance sheets and statements of revenue, expense and changes in retained earnings for the Water Fund and Sewer Fund of the City of Clermont, Florida as of and for the year ended September 30, 1995. These financial statements are the responsibility of the City of Clermont, Florida's management. Our responsibility is to express an opinion on these financial statements based on our audit. To the City Council City of Clermont, Florida GREENLt=c KURRAS RICE & BROWN, PA CERTIFIED PUBLIC ACCOUNTANTS MOUNT DORA: CLERMONT rlerbert John Greenlee, Jr" Jetry D, Brown, C,PA John S, Rice, CPA Patricia A. Sykes-Amos, CPA C, L. (Chip) Garner, CPA Dorothy A. KUffas, CPA John A. Powers, CPA Marl< A. Farner, CPA CPA - . CITY OF CLERMONT, FLORIDA SPECIAL REVENUE FUNDS COMBINWG STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED SEPTEMBER 30, 1994 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTE.'iBER 30 1993 INFRA - IMPACT TOTALS STRUCTURE FEE ... ... ... ... - - - - FUND F1.JND 1994 1993 ... ... ... ... ... ... ... ... ... .. ... ... ... ... ... ... Revenues Taxes $ 362,492 $ · . . 362,492 $ 335,619 Intergovernmental " . · . . . . . 349,953 Miscellaneous: Interest 692 1,503 2,195 798 Impact fees . . . 17,681 17,681 66,962 --------- --------- --------- --------- Total Revenues 363,184 19,184 382,368 753,332 --------- --------- --------- --------- Expenditures: Current: Transportation 4,193 · . . 4,193 5,478 Economic environment . . . · . . . . . 534,726 Culture and recreation 18,223 · . . 18,223 17,073 --------- ..-------- --------- --------... Total Expenditures 22,416 · . , 22,416 557,277 --------- --------- -------- -----...--... Excess of Revenues Over Expenditures 340,768 19,184 359,952 196,055 Operating Transfers (Out) (254,650 (24,359) (279,009 (335,390 --------- --------- -------- --------- Excess (Deficiency) of Revenues Over Expenditures and Operating Transfers 86,118 (5,175) 80,943 (139,335) Fund Balance October 1 18,165 67,238 85,403 224,738 --------- --------- --..---... --------- FUND BAU-'J'CE SEPTE.'1BER 30 $ 104.283 $ 62.063 166,346 $ 85,::'03 . . . THIS PAGE INTENllONALLY LEFT BlANK FUND BALANCE SEPTE11BER 30 $ 89 060 $ 104 283 $ 15 223 $ 18 165 Fund Balance Excess (Deficiency) of Revenues Over Expenditures and Operating Transfers October 1 18,165 --------- 70 895 18,165 --------- 86 118 15 223 20,172 ------- ') .... 007 Operating Transfers Excess of Revenues Expenditures Over 326.162 31,338 --------- Total Expenditures Current: Transportation Culture and recreation Total Revenues Revenues Taxes Miscellaneous Interest '..1711 ITY OF CLERMONT, FLORIDA INFRASTRUCTURE F1JND STATE.'ffi.'IT OF REVENUES, EXPENDITURES AND H&~GES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR E.~ED SEPTE.~ER 30, 1994 COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER c C 30 1993 TOTALS UTILITY SANITA1'IOH S'rQRMo<Al'ER ------- FUND FUND FUND 1994 1993 ---- --- ---- ---- ---- Reconciliation of Operating Income To Net Cash Provided By Operating Activitiee: Operating income (loss) $ (3,729 $ 6,071 $ 41,783 $ 44,125 S 206,137 .---------- ,- .------ ----------- ----------- -- ------- Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities: Depreciation 274,725 51,021 " , 325,746 307,913 Change in Assets and Liabilities: Decreas. (Increase) in receivables 17 , 131 378 (155) 17 , 354 (1,468 Decreas. in inv.ntory 1,742 ' " .. , 1,742 2,536 Increase (Decrease) in acc~ed expenses 3.977 42 (261) 3,758 (4,162 Increase (Decrease) in payables 62,209 128,160) 9,630 (56.321) 30,195 ----------- - ------ - ------ - ------- - ------- Total Adjustments 359,784 76,719) 9,214 292,279 335,014 ----------- - ------ - ------ - ------- - ------- Net Cash Provided (Used) by Operating Activities S 356,055 $ 70,648) $ 50,997 S 336,404 $ 541, 151 Out) 255,267) --------- 254,650 --------- 617 315,390 --------- 340 22,416 --------- 768 14 8,922 --------- 606 313 22,551 --------- 383 Expenditures 12,000 19,338 --------- 357,500 --------- 4,193 18,223 --------- 363,184 --------- 7,807 1,115 --------- 5,684 --------- 5,478 17,073 --------- 335,934 -------- $ 357.000 500 BUDGET $ 362.492 692 ACTUAL $ VARIANCE FAVORABLE (UNFAVORABLE 5 192 492 $ 335 1993 ACTUAL 315 619 e - . . CITY OF CLERM:)RT, FLŒIDA ERTERPR.ISE FUBDS cnmIBIBG STAnM:NT OF CASH ~ FOR 'I'BE YEAR DlDED SEPTD1BER 30, 1994 WITH CCMPARAIIVE TO'IAl.S FOR SEPTÐiBER 30 1993 TOTALS S~n:R FUND SAIU!AIIOH FUND UTn.ITY FUND 1993 1,849,477 774.120 s 1994 1,956,360 1,068,934 s 142,339 51,185 40,157 s 569,255 441,330 198.573) s S 1.244,766 576,419 312,292 Cash Flows From Operating Activities Cash received from customers ts to suppliers tor rvices Cuh paymen Cash payments employee (534,206 ----------- 551.022 Cash Flows From NonCapital Financing Activities: Advance to other fund Grants Operat.ing 541.151 404 336 50.997 648 70 356.055 Net Cash Provided By Operating Act.ivities 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 and (32,741 10,019 414.324 8,306 9,095 37,507 8,306 46,602 in out) t.ransfer interest. Net Cash Provided By Non- Capital Financing Activities 437,046) ----------- 789 507 37 8,306 46.602 SALES TAX REVENUE BOND SINKING FUND To account for the accumulation of funds and payment of Debt Service pertaining to the 1989 Sales Tax Revenue Bond. The City's share of the Local Government Infrastructure Surtax has been pledged to pay the 1989 Sales Tax Bond Debt Service. A portion of the surtax revenue is transferred to the Sales Tax Bond Fund monthly. (93,232 (110,000) (142,685 ) 2011,242 98.541 430,090) 125,000) 166,979 88.631 775 112 10.388) (306,927 (125,000 166,979 88.631 and Relat.ed of bonds bonds Cash Flows From Capit.al Financing Activitie.: Acquisit.ion and const.ruct.ion capital assets Principal paid on revenue Intere.t paid on revenue Contributed capital Refunding proceeds Net. Cash (Used) By Capital and Related Financing Activities (38,134) 126,417 24.341 633.438 147,183 20.604 775 8,402 112 (10,388 8,178 510.275 130,603 (20,604 ----------- Investing Activities From Cash Flows Interest Investment By purchases Net Cash Provided (Used Investing Activitles 102,076 579 126 8.402 8,178 109,999 in Cash Net Increase (Decrease and Cash Equivalents 168,047 171,244 15,869 552 64 90,823 Cash and Cash Equivalents at Beginning ot Year 140 187 2,961 S 3,129 129,187 S 2,957,943 3 203.460 187,591 S 367.639 303.087 S 2,558.088 S 2,467,265 Equivalents at Cash and Cash End ot Year CITY OF C~~ONT, FLORIDA SALES TAX REVL'lliE BOND SINKING FUND COMPARATIVE BALANCE SHEET SEPTL~ER 30, 1994 AND 1993 TOTALS -- - --- - -- ------... --- -........ --.. 1994 1993 .. .. .. .. .. .. .. .. ASSETS ------ Cash and cash equivalents $ 85,409 $ 84,227 ----------- ----------- TOTAL ASSETS $ 85,409 $ 84,227 LIABILITIES AND FUND BALANCE --------- --- ----.... ---..... ----- Liabilities: Accounts payable $ . . . $ 127 ----------- ----------- Fund Balance: Reserved for debt service - principal 48,000 45,000 Reserved for debt service - interest 37,409 39,100 ----------- ----------- Total Fund Balance 85,409 84,100 ----------- ---------..- TOTAL LIABILITIES AND FUND BALANCE $ 85,409 $ 84,227 CITY OF CI.EJIMJIIT, FLC.1IUDA !1ITERl'IUS% FUIroS CCMBINING SL\l'EMENT OF REVElIUES. EXPEl'ISES AKD CHANGES III RETAIHED EARJmfGS roa THE YEAR. ElIDED SEPTEHBER 30. 1994 WIIB CCHPARATIVE T()'TAU) FOR SEPTEHBER 30. 1993 TOTALS UTILITY SANI1'Al'ION STCRl+lAn:R ---------------- FUND FUND FUND 1994 1993 ---- ---- ---- ---- ---- Operating Revenues Charges for services $ 1,194.814 S 558.834 S 142,413 S 1,896,061 S 1, 830 , 540 Miscellaneou. 32,820 10,042 81 42.943 17.071 ----------- ----------- -. ------- ----------- ----------- Total Operating Revenuea 1,227,634 568,876 142.494 1,939,004 1,847.611 ----------- ----------- -, ------- ----------- ----------- Operatin& Expen.es: Personal services 316,269 198,615 39,896 554.780 530,044 Utilities 154,517 " . ., , 154,517 149,417 Landfill " , 224.077 .. , 224,077 164,699 Administrative services 102. 950 23,600 30,700 157,250 152,665 Repair and maintenance 202.810 24,463 4,322 231,595 116.119 Depreciation 274.725 51,021 . .. 325,746 307,913 Profe.sional service. 72, 103 3,375 17,892 93,370 70.895 Insu.rance 60,867 13,315 3,804 77 . 986 65.998 Operating supplies 32, 403 19,894 4,097 56,394 60,584 Office expense 14,719 4,445 .. . 19,164 19.457 Bad debt expense . .. .. . ... ,. . 3,683 ----------- ----------- -, ------- ----------- ----------- Total Operating Expenses 1,231,363 562.805 100,711 1,894,879 1,641,474 ----------- ----------- -, ------- ----------- ----------- Operating Income (Loss) (3,729) 6,071 41,783 44 , 125 206,137 ----------- ----------- - ------- ----------- ----------- Nonoperating Revenue. (Expenses) Interest revenue 87.636 8,178 8.'+02 104,216 126,417 Interest expense (251,890) ... . ,. (251,890) (171,989 Grant. .. . 10.000 " , 10,000 8,305 ----------- - ------- - ------- ----------- ----------- Total Nonoperating Revenues (Expenses) (164.254) 18.178 8,402 (137,674) (37,267 ----------- - ------- - ------- ----------- ----------- Income (Loss) Before Operating Transfers (167,983) 24,249 50, 185 (93,549) 168,870 Operating transfer. in (out) (46.602) .. . 37.507 (9,095) (414.324 ----------- - ------- - ------- ----------- ----------- Net Income (Los.) (214,585) 24.249 87.692 (102,644 ) (245.454 Retained Earnings - October 1 4,656.806 489.658 213.579 5,360,143 5,605,597 ----------- - ------- - ------- ----------- ----------- RETAINED EARNINGS - SEPTDlBER 30 S 4.442.221 S 513,907 S 301,371 S 5,257,499 S 5.360,143 - . CITY OF CLERMONT, FLORIDA SALES TAX REVENUE BOND S INKING FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BAL\NCE BUDGET AND ACTUAL - FOR THE YEAR ENDED SEPTEMBER 30, 1994 ~ITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED SEPTEMBER 30, 1993 1994 --------- ------------------------- VARIANCE FAVORABLE 1993 BUDGET ACTUAL (UNFAVORABLE) ACTUAL ------ ------ - ------ ------ Revenues: Miscellaneous: Interest $ 3,000 $ 2,870 $ (130) $ 3,223 --------- --------- - ----- --------- Expenditures: Debt Service: Fees 2,000 1,344 656 1,901 Interest 117,217 117,217 .. . 125,342 Principal 135,000 135,000 .. . 125,000 --------- --------- - ----- --------- Total Expenditures 254,217 253,561 656 252,243 ------..-... --------- - ----- --------- Excess (Deficiency) of Revenues Over Expenditures (251,217) (250,691) 526 (249,020) Other Financing Sources: Operating transfers in 251,217 252,000 783 249,673 --------- --------- - ----- --------- Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures . . . 1,309 1,309 653 Fund Balance - Beginning of Year 84,100 84,100 , , . 83,447 --------- --------- - ----- --------- FUND BALANCE - END OF YEAR $ 84,100 $ 85,409 $ 1.309 $ 84.100 . BLANK INTENTlONALL Y LEFT . THIS PAGE TOTAL LIABILITIES AND FUND EQUITY $ 11,060 433 $ 760,095 $ 312.299 $ 12 132 827 $ 12,246,289 Total Fund Equity 7 360,556 515.629 301,371 8 277 556 8.291, 569 Total Retained Retained Earnings Reserved Unreserved Earnings 4,442,221 1,604,630 2,837,591 513 513.907 907 301,371 301.371 5 504,630 3,652,869 257,499 5,360 1,550 3,810 143 075 068 Fund Equi ty: Contributed capital 2,918,435 101,722 020,157 2,931 526 Total Liabilities 3 699 777 144 466 10,928 3 355 171 3,954,520 Long-Term Liabilities: Revenue bonds (net of portion and deferred refunding amount current 3,328,124 ------------ 3 328 124 3.434,013 Total Current Liabilities payable from restricted assets 270.351 270,351 211,347 nus PAGE INTENTlONALl.. Y LEFT BLANK Current Liabilities restricted assets Deposits Revenue bond Revenue bonds 60,795 59,556 150.000 60,795 59,556 150,000 57,043 29,304 125,000 ------------ interest payable from Total Current Liabilitie. payable from current a.sets 101.302 144 466 10.928 256.696 309,260 payable Other accrued expen.e. Inter!und payable. 73,647 21,180 5,475 19,090 8,01. 117.357 8,880 1,280 768 $ 101,617 30,479 U4,500 ------------ 150,142 26,721 132.397 Liabilitie.: Current Liabilities !rom current a.sets Accounts payable $ s $ $ LIABILITIES AND FUND EQUITY UTILITY FUND SANITATION FUND S~l'ER FUND 1994 TOTALS 1993 . - . . 1993 30 CITY OF c:umarr, FLORIDA ERTERPIUS! FUNDS camIImfG BALANCE SHEET SEPTn1BER 30, 1994 WITH ID4PARAIIVE TOTALS FOR ~ TOTALS STORKOATER FUND SANITATION FUND UTILITY FUND 765 070 1993 1.367 529 s 962 707 1994 1,082 506 s 187,591 s 303.087 s 592,284 506.707 s equivalents ASSETS Current Assets: Ca.h and cash Inve.tment. 170,935 4,166 147,794 8,305 3,333 17.782 ,573 ,111 109,608 10,000 3,333 16,040 ------------ 169 30 933 11 169,573 1,937 10, 000 3,333 28,174 97,675 Receivable. Accounts Other Interfund Due from other governments Prepaid expense Inventory CAPITAL PROJECT FUND 16,040 ------------ Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds and Trust Funds). 2,249,150 1,928.334 199,524 ----------- 487,930 ----------- 1,240,880 ------------ Assets Restricted Assets Cash and cash equivalents Total Current 422 1,761 1,874,981 1,874.981 aUIWING CONSTRUCTION FUND To account for the construction of the Public SeNices Complex, and Police Department Building. 242.630 927,606 3,513,827 6.382.100 855.613 232.081 937,617 600,145 519,588 29,950 959,565 62 , 371 ------------ 232.081 937,617 3,600,145 6,519,588 charge. Plant and Equipment Deferred Property Land Water Sewer 3 6, 29,950 82,825 717 552 324,023 62. 371 buildings system system Improvements other than Machinery and equipment Construction in progress 146 11,679 109,236 12 775 112 552.717 744 443 11 3.686,059 087 7.993 011.805 8.097.431 4 775 112 280.552 165 272 3,731,253 ------------ 491 712 7 accumulated depreciation Met Property, Plant and Equi pmen t Less 12.246.289 s 827 132 12 s 312,299 s 760.095 s 433 11 , 060 s TOTAL ASSETS To account for the construction and maintenance of stormwater drainage systems within the City. All activities necessary to the provision of this service is accounted for in this fund. STORMWATER UTlUTY FUND To account for the provision of garbage and trash removal services to the residents of the City. All activities necessary to the provision of these services are accounted for in this fund. CITY OF CLERMONT, FLORIDA CAPITAL PROJECT FUND BAUNCE SHEET SEPTEMBER 30, 1994 WTTH COMPARATIVE TOTALS FOR SEPTEMBER 30. 1993 BUILDING CONSTRUCTION - - ASSETS ------ Interfund receivables $ - - TOTAL ASSETS $ LIABILITIES AND FUND BALANCE -------------------- Liabili ties: Retainage payable $ - Total Liabilities Fund Balance - TOTAL LIABILITIES &~ FUND BALANCE $ TOTALS ----------- 1993 ............ .... $ 43,336 ----------- $ 43,336 $ 43,336 ----------- 43,336 .. . - ------ $ 43.336 SANITATION FUND To account for the provision of water and sewer services to the residents of the City. All activities necessary to the provision of these services are accounted for in this fund, including, but not limited to administration, plant and line maintenance. UTlUTYFUND Enterprise Funds are used to account for operations (a) 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) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charge; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. ENTERPRISE FUNDS - . CITY OF CLERMONT, FLORIDA CAPITAL PROJECT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED SEPTEMBER 30, 1994 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTE..'ŒER 30. 1993 TOTALS BUILDING ------ CONSTRUCTION 1993 ... ... ...... Revenues: Miscellaneous $ $ 3,578 - ----------- Total Revenues 3,578 - ----------- Expenditures: Capital outlay: Public safety 873,716 - ----------- Total Expenditures 873,716 - ----------- Excess (Deficiency) of Revenues Over Expenditures (870,138) Other Financing Sources (Uses): Operating transfers in 428,910 - ----------- Total Other Financing Sources (Uses) 428,910 - ----------- Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses (441,228 Fund Balance October 1 441,228 - ----------- FUND BAlANCE SEPTEMBER 30 $ $ . INTENTIONALLY LEFf BLANK . THIS PAGE THIS PAGE INTENTlONALL Y lEFT BlANK PROPRIETARY FUND TYPES