1972-01STONE & YOUNGBERG
MUNICIPAL FINANCING CONSULTANTS. INC.
November 6, 1972
Honorable Mayor and Members
City Council
City of Clermont r Florida
Gentlemen:
For $1,540,000 City of Clermont, Florida Water and Sewer Revenue
Refunding. Bonds, American Appraisal Securities (Stone & Youngberg
Municipal Financing Consultants, Inc. (hereinafter referred to as
"Purchaser"), agrees to purchase and the City of Clermont, Florida
(hereinafter referred to as "City"), agrees to sell subject to the fOllow-
ing terms and conditions:
Purchaser agrees to pay One Million Five Hundred Forty Thousand Dollars
($1,540,000 ) plus accrued interest from date of is sue to date of delivery.
The Bonds shall be in coupon form, registrable as to principal only, in
$ 5,000 denominations dated November 1, 1972, payable at a bank or
, banks to be designated by the Purchaser and shall mature on November 1
in the following years and amounts and shall bear the following interest
rates (s):
Maturity Amount Rate Maturity. Amount Rate
1985 $ 50,000 6.00% 1994 $85,000 .6.00%
1986 50rOOO 6.00% 1995 90,000 6.00%
1987 55,000 6.00% 1996 95,000 6 ~ 00%
1988 60,000 6.00% 1997 100,000 6.00%
1989 60,000 6.00% 1998 105,000 6.00%
1990 65,000 6.00% .1999 115,000 6.00%
1991 70,000 6.00% 2000 120,000 6.00%
1992. 75,000 6.00% 2001 130,000 6.00%
1993 80, 000 6.. 00% 2002 135,000 6.00%
Honorable Mayor and Members
Clermont City Council
Page 2
Redemption Provisions
Bonds maturing in the years 1983 and thereafter are redeemable prior to
their respective dates of maturity at the option of the Council, in whole
or in part, in inverse numerical order if less than all on November 1,
1982, or on any interest date thereafter, at par plus accrued interest to
date of redemption, plus a premium of 3% if called on November 1, 1982,
and reducing by 1/4% on each annual principal payment date thereafter.
Bonds of this issue maturing in the years prior to 1983 are not redeemable
prior to their respective stated dates of maturity.
Validation and Approval of Legality
This offer to purchase the bonds is subject to validation by judgment of
the Circuit Court in and for Lake County, Florida, and subject to the
approval of Messrs. Freeman, Richardson, Watson, Slade & McCarthy,
Jacksonville, Florida, whose approving opinion will be provided at the
time of delivery.
The Refunding
Enough funds will be set a side from the proceeds of the issue to retire all
the 1970 bonds which are subject to redemption prior to their stated dates
of maturity. The 1970 bonds maturing from 1975 to and including 1985
will not be refunded but will remain outstanding as a first lien on the
water and sewer revenues.
Purpose
These bonds are being issued to pay the cost of refunding a portion of the
outstanding Water and Sewer Revenue Bonds of the City dated November 1,
1970.
Further Conditions
The authorizing resolution for the bonds will contain protective covenants
similar to those contained in the authorizing resolution for the 1970 bonds.
Honorable Mayor and Members
Clermont City Council
Page 3
The depository and trustee banks for the Refunding Escrow Fund and the
Sinking Fund will be designated by the City pursuant to the recommenda-
tion of the Purcha ser.
The Purchaser guarantees to provide the securities to be escrowed at
closing at a price to yield the same return a s the refunding bonds shall
bear and City agrees to purchase said securities from proceeds of this
bond issue. The Purchaser agrees to pay the following costs incident to
the is suance of the bonds: the cost of printing and distributing the sales
brocure; the cost of printing the bonds; the cost of delivering the bonds
(including the cost of travel and lodging for representatives of the City);
the fee of Freeman, Richardson, Watson, Slade & McCarthy, Bond Counsel;
the. Purchaser's own travel, telephone, office and out-of-pocket expenses;
the cost of any advertising necessary to the issuance of the bonds and
the fee of the City's attorney.
Delivery
The interim bonds shall be del ivered to the Purcha ser by February 1, 1973,
subject to being validated, and this transaction shall be closed by said
date.
Execution
Please indicate your acceptance of the above proposal by signing in the
space indicated below.
ACCEPTED:
Very truly yours,
Title
AMERICAN APPRAISAL SECURITIES
(Stone & Youngberg Municipal
Financing Consultants Inc.)
By
ATTEST:
By
CITY OF CLERMONT, FLORIDA
By
Date
ATTEST:
By
$ 1 , 540 , 000
.CLERMONT WATER & SEWER BONDS
6% - Due 11-1-73/2002
. New Issue
Principal Less Old Issue Total Net
Due & Escrow Annual Debt
N ov. 1 Maturitv Interest Interest Ea rninq s Debt Service Service
1973 -0- $92,400 $92,400 $92,400 $116,600 $116,600
1974 -0- 92r400 92,400 92,400 116,600 116,600
1975 -0- 92r400 92r400 92r400 121,600 121,600
1976 -0- 92r400 92,400 92,400 12l,275 121,275
1977 -0- 92,400 92,400 92,400 .125,950 125,950
1978 -0- 92,400 92,400 92r400 130,300 130,300
1979 -0- 92.,400 92r400 92,400 134,325 134,325
1980 -0- 92,400 92,400 92,400 138,025 138,025
1981 -0- 92r400 92,400 92,400 141,400 141,400
1982 -0- 92r400 92,400 92,400 139,450 139,450
1983 -0- 92,400 92r400 92,400 137r500 137,500
1984 -0- 92,400 92,400 92,400 140,550 140,550
(Call May 1, 1985) 46,200 46,200 51,637 51,637
1985 $50,000 46,200 96,200 -0- -0- 96,200
1986 50,000 89,400 139,400 139,400
1987 55rOOO 86,400 141,400 . , 141,400
1988 60,000 .83,100 143,100 141,400
1989 60,000 .79,500 139,500 139,500
1990 65rOOO 75r900 140,900 140,900
19~n 70,000 72,000 142,000 142,000
1992 75,000 67,800 142,800 142,800
1993 80,000 63,300 143,300 143,300
1994 85,000 58r500 143,500 143,500
1995 90,000 53,400 143,400 143,400
1996 95rOOO 48rOOO 143,000 143,000
1997 100rOOO 42r300 142,300 142,300
1998 105,000 36,300 -141,300 141,300
1999 115,000 30rOOO 145rOOO 145,000
2000 120,000 23rl00 143,100 143,100
2001 130,000 15,900 145r900 145,900
2002 135,000 8,100 143,100 143.100
Total Cost of Refunding $4,134,412
-.....
Total cost of old issue ='$4,306,335
Net Savings = 171,923 ~
Escrow in the amount of$l, 540,000 will provide funds to redeem $1,495 r 000 bonds
callable on 5-1-85r together with premium @ 103 amounting to $44,850 or a total of
$1,539,850. Income from the escrow will offset the cost of the new issue through
_ date of call.