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83-Y
RESOLUTION NO. g$--y A RESOLUTION DESCRIBING THE TE~MS~ FORM .AND CERTAIN OT~R PROVISIONS OF $1~750,000 RECREATIONAL AND MUNICIPAL BEACH FACILITIES BONDS OF THE CITY OF BOYNTON BEACH, PLORIDA~ PROVIDING FOR THE ISSUANCE AND Fi~iNG CERTAIN DETAILS OF SUCH BONDS~ NAMING CERTAIN BANKS TO ACT AS PAYING AGENTS AND BOND REG!STRAR~ AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council (the ~'City Council") of the City of Boynton Beach, Florida (the ~'City") on January 19~ 1982~ duly adopted Ordinance No. 82-3 (the "Ordinance'~)~ which ordinance authorized the issuance, subject to elec- tion~ of not exceeding $1~750~000 Recreational and Municipal Beach Facilities Bonds~ and WHEREAS, pursuant to the Ordinance a special bond election was duly conducted at which more than a majority of the qualified voters of the City of Boynton Beach voting thereon were in favor of issuing said $1~750~000 Bonds~ and WHEREAS~ the City Council on November 3~ 1982~ duly adopted Resolution No. 82-M~4M (the "i982 ResolutiOn~') pro- viding for the issuance of $1~750,000 Recreational and ~uni~ipal Beach Facilities Bonds (the "Bonds) of the City~ and WHEREAS~ it is necessary to determine the terms~ form and certain other provisions of said Bonds~ and WHEREAS~ it is necessary to fix the details of said Bonds and name certain banks to act as Paying Agents and Bond Registrar for the Bonds. NOW~ THEREFORE~ BE AND IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF BOYNTON BEACH, FLORIDA: Section t. The Bonds shall be issued in the aggre- gate principal amount of $1~750,000 and shall be dated February 1, 1983. Section 2. The Bonds issued under the provisions of this Resolution and th~ interest coupons attached thereto~ 'the statement of validation and the provisions for registration and reconversion and the legends and approvals to be endorsed on the Bonds, shall be, respectively, substantially in the following form, with such appropriate variations~ omissions and insertions as may be required or permitted by the Ordinance, the 1982 Resolution and this Resolution: $5~000 Unites States of America State of Florida County of Palm Beach CITY OF BOYNTON BEACH Recreational and Municipal Beach Facilities Bond The City of Boynton Beach (herein called the ~City~')~ a municipal corporation organized and existing under the laws of the State of Florida, for value received hereby promises to pay to the bearer or~ if this bond be registered~ to the registered owner hereof~ on the 1st day of August~ , the principal sum of FIVE THOUSAND DOLLARS together with interest thereon from the date hereof at the rate of per centum ( %) per annum until payment of such principal sum, such interest to the maturity hereof being payable semi-annually on the 1st day of February and August in each year upon presentation and surrender of the attached interest coupons as they severally become due. Both the principal of and the interest on this bond are payable at the principal office of ~ in the Borough of M~-h=ttan, City and State of New York~ or~ at the option of the holder or registered owner, at , in the of , Florida~ in any coin or currency of the United States of America which, at the respective dates of payment thereof, is legal tender for the payment of public and. private debts~ For the prompt payment hereof, both principal and interest as the same shall fall due~ the full faith, credit and taxing Dower of said City are hereby irrevocably pledged~ This bond is one of a dully authorized series issued by the City for the purpose of providing funds for paying the costs of developing recreational and municipal beach facilities of the City of Boynton Beach consisting of the construction of a recreational building and parking areas at the site of the municipal beach, the construction of improvements to preserve the dunes and the beach, together with any equipment and landscaping necessary or desirable in connection therewith. The bonds are issued under the authority of and in full compliance, with the Constitution and laws of the State of Florida, including the. Charter of the City~ and pursuant to Ordinance No~ 82-3 and resolutions duly adopted by the City Council of said City, and the issuance of the bonds of this series was duly approved by a majority of the qualified voters of the City of Boynton Beach voting thereon at a special bond election duly called~ and held for the purpose. The bonds maturing on or after August 1~ 1994~ are subject to redemption~ at the option of the City, on August 1, 1993 and on any interest payment date thereafter, in whole or in part (in the inverse order of their maturities and by lot within a maturity) at the following redemption prices (expressed as percentages of the principal amount to be redeemed) plus accrued interest to the date of redemption: Redemption Date RedemDtion PriCe August 1, 1993 or February t, 1994 103% August I, 1994~or February 1, 1995 103 August 1, 1995 or February 1, 1996 102 August 1~ 1996 or February 1~ 1997 102 August 1~ 1997 or February 1, 1998 10! August i~ 1998 or February 1~ 1999 10! August 1, 1999 and thereafter 100 Any such redemption~ either in whole or in part, shall be made upon at least thrity (30) days' prior written notice, signed by the Paying Agent, (a) shall be published in a daily newspaper of general circulation in the City, and in a daily newspaper of general circulation or a financial journal published in the Borough of Manhattan, City and State of New York, (b) shall be filed with the Paying Agent and (c) shall be mailed~ postage prepaid, to all registered[ owners of bonds to be redeemed at their addresses as they appear on the registration books., but failure to so to mail any such notice shall not affect the validity of the pro- ceedings for such redemption. Each such notice shall set forth the dat'e of redemption, the redemption price and, if less than all of the bonds then outstanding shall be called for redemption~ the number of such bonds. On the date designated for redemption, notice having been published and filed and moneys for the payment of the redemption price being held by the Paying Agent, the bonds so called for redemption shall become due and payable at the redemption price provided for redemption of such bonds on such date~ interest on such bonds so called for redemption shall cease to accrue~ coupons maturing after such date shall be void and the holders or registered owners of such bonds shall have no rights in respect thereof except to receive the redemption price thereof. It is hereby certified and recited that all acts~ conditions and things required by the Constitution and laws of the State of Florida to happen, exist and be performed precedent to and in the issuance of this bond have happened, exist and have been performed in due timer form and manner as so required~ that the total indebtedness of the City, including this bond, does not exceed any constitutional or statutory limitation thereon~ and that provision has been made for the levy and collection of a direct annual tax upon all taxable property within said City sufficient to pay the principal of and the interest on this bond as the same shall become due. This bond may be registered as to principal alone in accordance with the provisions endorsed hereon. IN WITNESS WHEREOF~ The City of Boynton Beach, Florida~ by order of its City Council~ has caused this bond to be signed by its Mayor and to be attested and counter- signed by its City Clerk, either manually or with a fac- simile signature, a facsimile of its official seal to be imprinted hereon, and the attached interest coupons to be executed with the ~ acslmlle signature of said Mayor, all as of the 1st day of February~ 1983. CITY OF BOYNTON BEACH~ FLORIDA By Mayor A'~sted and Countersigned: City Clerk The form~ language and execution of the foregoing Bond and attached coupons have been approved by me~ City Attorney of the City of Boynton Beach, Florida The substance of the foregoing Bond and attached coupons have been approved by me City Manager of the City Boynton Beacht Florida PROVISIONS FOR REGISTRATION This bond may be registered as to principal alone on books of the City kept by the Finance Director as Bond Registrar~ or by such other Bond Registrar as may be legally appointed by the City Council, upon presentation hereof to such Bond Registrar who shall make notation of such registration in the registration blank below, and this bond may thereafter be transferred only upon an assignment duly executed by the registered owner or his attorney in such form as shall be satisfactory to the Bond Registrar, such transfer to be made on such books and endorsed hereon by the Bond Registrar. Such transfer may be to bearer and thereby transferability by delivery shall be restored, but this bond shall again be subjegt to successive registrations and transfers as before° The principal of this bond~ if registered, unless registered to bearers shall be payable only to or upon the order of the registered owner or his legal representative. Notwithstanding the registration of this bond as to principal, the coupons shall remain payable to bearer and shall continue to be transferable by delivery. Date of Re__~stration Name of R_~_qistered Owner Signature of Bond Req~strar (Form of Coupons) $'o ~ On it 19__, the City of Boynton Beach, Florida~ will pay to the bearer at the principal office of , in the Borough of Manhattan~ City and State of New Yorks ors at the option of the bearer, at , in the ~of s Fiorida,i upon presentation and surrender hereof, the sum of Dollars in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts, as provided in and for the semi-annual interest then due upon its Recreational and Municipal Beach Facilities Bonds dated ~ 19 s N©. (here insert in coupons representing interest payable on and after the earliest redemption date~ if anys the words "unless said bond shall have been called for previous redemption and provision made for the payment thereof~)~ Mayor STATEMENT OF VALIDATION This bond is one of series of bonds which were validated by judgment of the CirCuit Court for the Fifteenth Judicial Circuit rendered on February 23, 1983. Section 3. $1,750~000 of the Bonds shall be serial bonds (being all of the Bonds) bearing interest payable on August t, 1983~ and semi-annually thereafter on the 1st days of February and August and maturing annually on August If in the following years and in the following amounts: Year of Principal Year of Principal Maturit~ Amount Maturit~ Amount 1985 $35,000 1995 $ 80~000 1986 35,000 1996 90,000 1987 40~000 1997 95,000 1988 45,000 1998 105,000 1989 45,000 1999 115,000 1990 50,000 2000 125,000 1991 55~000 2001 140,000 1992 60,000 2002 150~000 1993 65,000 2003 165,000 1994 75,000 2004 180,000 Section 4. Florida National Bank of Miami, in the City of Miami~ Florida is hereby designated as the Paying .Agent Bond Registrar for the Bonds. Section 5. The Bonds maturing on August id 1994 and thereafter shall be subject to redemption at the option of the City~ prior to maturity as a whole, or in part~ in the inverse order of their stated maturities and by lot within a maturity~ on August 1, 1993 and any interest payment date thereafter~ at the following redemption prices (expressed as.: percentages of the principal amount to be redeemed) plus accrued interest to the redemption date: Redemption Date Redem_j2tion Prices August 1, 1993 or February !~ 1994 August 1~ 1994 or Feburary i~ 1995 August 1~ 1995 or February 1, 1996 August 1, 1996 or February 1, 1997 August 1, 1997 or February 1, 1998 August i, 1998 or February 1, 1999 August 1~ 1999 and any interest payment date thereafter 103% 103 102 102 101 101 i00 Section 6. This resolution shall take effect imme- diately upon its adoption. PASSED AND ADOPTED by the City Council of the City of Boynton Beach~ Florida this 4th day of May~ 1983. CITY OF BOYNTON BEAC.H~/~ FLORIDA Vice~y~/ -- Coun~ ATTEST: (Corporate Seal) STATE OF FLORIDA COUNTY OF PALM BEACH SS~: I, Betty Boroni~ City Clerk in and for ~:~:~:~ of Boynton Beach, Florida, DO HEREBY CERTIFY that ~h'~ ~b~Ve and. foregoing is a true and correct copy of a resolu~Ch~ adopted by the City Council at a special'meeting held on th-e 4th day of May~ 1983, as it appears on recor~ in the Minutes of said City Council. IN WITNESS WH:EREOF~ I have hereunto set my hand and official seal this ~ day of May, A.D.~ 1983. City Clerk In the opinion of Bond Counsel, the interest on the Bonds is exempt from all present Federal income taxes and the Bonds and the income thereon are exempt from taxation under the laws of the State of Florida, except as to taxes imposed by Chapter 220, Florida Statutes, on interest, income or profits on debt obligations owned by corporations as defined in said Chapter 220, Florida Statutes. NEW ISSUE $1,750,000 CITY OF BOYNTON BEACH, FLORIDA (Palm Beach County) Moody's: A S&P: (Pending) RECREATIONAL AND MUNICIPAL BEACH FACILITIES BONDS (GENERAL OBLIGATION BONDS) Dated: February 1, 1983 Due: August 1, as shown below The General Obligation Bonds (hereinafter called the "Bonds") shall be dated February I, 1983; shall be issued either as coupon bonds, in the denomination of $5,000 each or any integral multiple thereof, registrable as to principal only. Principal and semi-annual interest (on February 1 and August 1, first coupon August 1, 1983) are payable at Florida National Bank of Miami, Miami, Florida, Paying Agent. The Bonds are being issued to finance the cost of recreational and municipal beach facilities of the City of Boynton Beach (the "City"). The issuance of the Bonds was approved by a majority of votes cast in a bond referendum held March 2, 1982 by the qual- ified electors of the City, in the manner required by the Constitution and Statutes of the State of Florida. The Bonds are issued under the authority and in full compliance with the Constitution and laws of the State of Florida, including, particularly the City Charter of the City, Chapter 166, Florida Statutes, Ordinance No. 82-3 adopted January. 19, 1982 and Resolution No. 82- MMMM duly adopted by the City on November 3, 1982 (collectively the "Resolution"). The Bonds herein offered are general obligations of the City. Under the terms of the Resolution, the principal of and inter- est on the Bonds will be secured by and payable from unlimited ad valorem taxes to be levied and collected on all taxable prop- erty within the City. The Full Faith' and Credit and Taxing Power of the City has been irrevocably pledged for the payment of the principal of and interest on the Bonds. PaymeTM of the principal of and interest on the Bonds will be guaranteed by a municipal bond insurance policy to be issued by the Municipal Bond Insurance Association simultaneously with the delive~ of the Bonds if such insurance is selected by the successful bidder as a condition of such bid. The Bonds maturing August I, 1994 and thereafter are subject to prior redemption as more fully described herein. MATURITIES, AMOUNTS, INTEREST RATES AND PRICES OR YIELDS Due Principal Interest Date Amount Rate 1985 $35,000 1986 35,000 1987 40,000 1988 45,000 1989 45,000 199o 50,o00 1991 55,000 "~0 1992 60,000 1993 65,OOO 1994 75,000 Price~'''~ Principal Interest Pria~- ~ Amount Rate ~/,i~M-.~ ,oo Due Date 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 $ 80.000 90.000 95 000 105.000 115.000 125 000 140 000 150 D~0 165 D00 180 [100 (Plus Accrued Interest from February 1, 1983 on all Bonds) SEALED BIDS FOR THE BONDS WILL BE RECEIVED BY THE CITY UNTIL 12:00 NOON (EDST), WEDNE, SDAY, MAY 4, 1983. These Bonds will be offered when. as and if issued and received by the Underwriters, subject to the unqualified approval of legality by Brown, Wood, Ivey, Mitchell & Petty,. New York, New York, Bond Counsel. Certain legal matters will be passed on for the City by James W. Vance, Esq., West Palm Beach, Florida. It is expected that the Bonds in definitive form will be available for delivery to the Underwriters in New York, New York on or about June 1, 1983. *For an explanation of the ratings, see "Ratings" herein. THIS PAGE I~IONALLY LEF~ BLANK CITY OF BOYNTO~ BEAf~, FLORI~ OFFICIALS CITY CGt~k~2IL James R. Warnke - Mayor Carl Zimmerman - Vice Mayor Joe deLong - Councilmember Nick Cassandra - Councilmember Samuel Lamar Wright - Councilmember CITY OFFICIALS Peter L. Cheney - City Manager Grady W. Swann- Finance Director Betty Boroni - City Clerk Charles C. Frederick - Recreational Director James W. Vance, Esq. West Palm Beach, Florida CE~TIFIEDPUBLICACC~ Ernst & Whinney West Palm Beach, Florida Brown, Wood, Ivey, Mitchell & Petty New York, New York Florida Municipal Securities A Division of Henderson, Few & Co. Orlando, Florida i No dealer, broker, salesman or otP~er Dersop.. has been au. tborized to make any representations~ other than as contained in the official Statement, and if given or made, such other information or representations must not be relied~ upon. 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 Bonds by .any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information contained in this official Statement haS been obtained from pUblic documents~ records and other sources considered to be reliable and, while not. guaranteed as to completeness or · ~ · :- ~ ~^ correct. Any statements in this. O.f. ficiai accuracy, is Dellevec]..nu~__u~ ~ ..... ~:ions and matters of opinion whether or~ ~atement involving estimate , . -~. .... ~ ~nd not as representations o~ not so expressly stated, are ~ntenoeo a~ ouu ..... . .- · sl makes no representations that such estL~ates, · and the City expres Y_. . · ~ ~,,~ illed. No information, fact. · · ' I De real~zed u~ ~f .' . . · assumptions and o.p.lnlons.~wl~rs of oninion contained in this off_~c_~a~l^ estimates, assumptions anu ~u== = · . hereunder, shall under any circumstances, statement, or any sale. made _~ ~ .... ~ affairs of the City since ' lication that there has been ~u u ..... ~ .~. the any imp the date hereof. IN CONNECTION WITH THE OFFERING OF THE BONDS, THE UNDERWRITERS MAY OVERALI~ OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF SUCH BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET.SUCHSTABILIZING,IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. TABLE OF C~ pa~e i OFFICIALS ......... ' .............. · · .... ' . iii AUTHORITY ............... · ' ' THE ~..~.~...~ · ..~..~.~ ~-~.~' ...~'"....~"~ i 2 SECURITY .................. 4 AD VALOREM TAXATION ..................................................... AD VALOREM TAXES ................................................ 4 LEVY OF ............................... 5 BO~o I~s~CE ................. NOVEMBER 1984 · · · OiT ...................................... FUTURE FINANCING pLANS DEBT SERVICE REQUIREMENTS ............................................... BOYNTON BEACH - 8 CITY OF ................................. · .... 9 CITY GOVERNMENT · CITY ...................................... 10 MILLAGE RATES WITHIN THE .......................... TAXABLE ASSESSED VALUATIONS 11 COMPARISON OFLEviES & COLLECTIONS .................................. 11 PROPERTY T~AXPAYERS ............................................... 12 10 LARGEST DATA ............................................ 14 SELECTED FINANCIAL ............................................ PENSION FUND OPERATIONS 15 ~oY~ RELATIONS ........... ~Ti~S ........... ::: .... :-:" · .::":--'::: .... V~I~TI.O~..:::.:::::.::::' .: ............ LT~ITY ........................................................... 16 EXEMPTION .:...:. LITI~TION ..... :'': .... :'''"" · ........ MISCELLANEOUS- · · . .............. 16 AUTHORIZATION OF AND CERTIFICATE CONCERNING OFFICIAL STATEMENT .......... APPENDIX A - GENERAL INFORMATION - CITY OF BOYNTON BEACH AND PALM BEACH COUNTY ............................. · . .. B-1 APPENDIX B - RESOLUTION NO. 82-MM~M AUTHORIZING THE BONDS ........... C-1 APPENDIX C - ORDINANCE NO. 89--3 AUTHORIZING THE BONDS ................... APPENDIX D - COMBINED AUDITED FINANCIAL STATEMENTS OF THE CITY .......... D-1 APPENDIX E - FORM OF LEGAL OPINION ...................................... E-1 ii (Subject in all respects to more complete information contained in this Official Statement and the documents sun*narized herein). The City of Boynton Beach, Florida (the "City") (1980 Census 35,624 and 1982 estimated population 37,532) is issuing these $1,750,000 General Obligation Bonds (the "Bonds") for the purpose of paying the cost of recreational and municipal beach facilities of the City. Said additions and improvements shall include the construction of a recreational building anq parking areas, improvements to preserve the dunes and beachfront, boardwalks, certain necessary and desirable landscaping, and the purchase of necessary. equipment. Construction is anticipated to begin in December and should be completed within one year after co~encement. Proceeds of the Bonds shall also be used to pay accrued interest on the Bonds and issuance costs of the BondS,the successfulincludingbidder.the MBIA insurance premium, if such insurance is selected by The principal of and interest on the Bonds herein offered are secured by and payable from unlimited ad valorem taxes to be levied and collected on all taxable property within the City. The Full Faith, Credit and Taxing Power of the City has been irrevocably pledged for the payment of the principal of and interest on the Bonds pursuant to the Resolution and an election held on March 2, 1982, by the qualified electors of the City, in the manner required by the Constitution and laws of the State of Florida. The City is a municipal corporation organized and existing under the laws of the State of Florida. The City is loca approximately 13 mi]~ ........ ~ ted in Palm Beach County Lauderdale. Th~ ~-.~uu~n or .wes. t Palm Beach and 30 miles north of Ft. ~-~- ~y is governed Dy a Council-Manager form of government and employs a full-time city manager to run the affairs of the City. The City also employs a full-tf_me director of finance who has responsibility for all internal auditing and financial record-keeping operations of the City. The City has been awarded the Municipal Finance Officers Association (MFOA) FiscalCertificate Years of 1979, Conformance 1980 and for 1981. its Comprehensive Annual Financial Report for The major segments of the economy of the area are retail and wholesale trade, real estate, finance, tourism, agriculture, Professional services and light manufacturing. Approximately twenty-five light industries are located in the City, with manufactured products ranging from paper processin machinery to electrical switches. M ' a Motorola Cor~r=~ ..... a3°r pro3ects under dev=~ ......... g f~ ~.~._,_ . ~ ~ ~anuracturin~ ~lan~ ~ ..... ~,~c include ~ ~cn when fully develo~ ~.~=~ ~ ~ u~ ~pproxlma~e±y 300,000 s · ~ ~ ~ ~p±oy approximately 1 ~ ~ quare ma3or regional shopping mall with ' . ~ ,~uu people and a approximately 140 speciality stores, s~x ma3or department stores and Agricultural production has a si~nific o ' Beach19 County, . with the su~=~ ~,~dust~ ~= of ant u~pact, on the economy of Palm 81, a r ...... ~Y great lm pp ox .... ~ue~y 245-000 ....... portance to the area. ~ approximately $509 m~^~' ~. ~ pro~uce(~ sugar and ~--- '~'~ ~*u~. 'rne total v=] .... ~ _~ . _ ~,u~sses worth Palm Beach County, which includes beef, dairy cows, horses, sod, flowers, .... ~ ~z agrlcu±tural production in citrus and tropical fruits and vegetables was approximately $874 million in the 1980-81 crop season. ' iii THIS PAGE INYENTIO~Y LEF~ BLANK The purpose of this Official Statement, including the cover page, stm~ary statement and append ices, is to set forth certain information concerning the sale by the City of its Sl,750,000 aggregate principal amount of Bonds designated Recreational and Municipal Beach Facilities Bonds (General Obligation Bonds) dated February 1, 1983 (the "Bonds"). The Bonds were authorized by Ordinance No. 82-3 adopted by the City Council of the City (the "Council") on January 19, 1982. The Bonds are. further authorized under the provisions of Resolution No. 82-MMMM adopted by the City Council on November 3, 1982 and the Constitution and laws of the State of Florida. The Full Faith, Credit and Taxing Power of the City are irrevocably pledged to the payment of principal and interest pursuant to an election held on March 2, 1982, by the qualified electors of the City, in the manner required by the Constitution and laws of the State of Florida. The validity of the Bonds has been determined by a final judgment of the Circuit Court of the Fifteenth Judicial Circuit Court of Florida in and for Palm Beach County rendered on February 23 1983. The time to appeal expired on March 23, 1983. ' The Bonds shall be issued as coupon bonds registrable as to principal only in the denomination of $5,000 each or any integral multiple thereof. The Bonds shall be serially numbered from one upward, shall bear interest at such rate or rates not exceeding the maximum rate provided by applicable law, such interest to be payable semi-annually on February 1 and August 1 of each year, with the first interest payment due on August 1, 1983 1, 1983 and shall mature on August 1 in the years and~ shall be dated February cover page of this Official Statement. amounts set forth on the ~(~I pROVISIONS The Bonds maturing in the years 1985 through 1993, both inclusive, are not redeemable pr±or to their respective stated dates of maturity. The Bonds maturing on or after August 1, 1994 are subject to redemption, at the option of the City, on August 1, 1993 and any interest payment date thereafter, whole or in part (in the inverse order of their maturities and by lot within a maturity) at the following redemption prices, plus accrued interest to the date of redemption: Redempt ion Per iod (Dates Inclusive) 8/1/93 through 2/1/95 8/1/95 through 2/1/97 8/1/97 through 2/1/99 8/1/99 through thereafter Redemption Price (percent of ~amount) 103% 102 101 100 Notice of such redemption shall be made at least thirty (30) days prior to the redemption date, shall be signed by the Paying Agent, (i) shall be published once in a daily newspaper of general circulation in the City, and in a daily newspaper of general circulation or a financial journal published in the Borough of Manhattan, City and State of New York, (ii) shall be filed with the Paying Agent, (iii) shall be mailed, postage prepaid, to all registered owners of Bonds to be redeen~d at their addresses as they appear on the registration books, but failure to so mail any such notice shall not affect the validity of the proceedings for such redemption. T~EP~ The Bonds herein offered are being sold for the purpose of providing funds for paying the cost of developing recreational and municipal beach facilities in the City consisting of the construction of buildings and parking areas at the site of the municipal beach and for the construction of ~uprovements to preserve the dunes and beach area, boardwalks, picnic areas, for purchase of necessary equipment and for necessary and desirable landscaping (the "Project"). Construction of the Project is scheduled to begin by December 1983 and should be completed within one year from con~uencement. Additionally, bond proceeds shall be used to pay accrued interest on the Bonds and pay related issuance costs of the Bonds, including the MBIA insurance premium if such insurance is selected by the successful bidder. The payment of the principal of and interest on the Bonds will be secured equally and ratably by an irrevocable pledge of the Full Faith and credit and Taxing Power of the City. In each year while any of the Bonds are outstanding, the City will levy and collect a tax, without limitation as to rate or amount, on all taxable property within the City over and above all other taxes authorized or limit~ by law, sufficient in amount to pay the principal of and interest on such Bonds as the same shall become due. Such tax will be assessed, levied a~ collected in the same manner and at the same time as other City taxes are assessed, levied and collected. AD VA[DREMTAXATION Under State law, the assessment of all properties and the collection of all county, municipal and school board property taxes are consolidated in the office of the County Property Appraiser and County .Tax Collector. Municipalities are not permitted to levy property taxes at a rate of more than 10 mills, but there is no limitation as to rate or amount of ad valorem taxes levied for the purpose of paying debt service on general obligation bonds. The laws of the State regulating tax assessment are designed to assure a consistent property valuation method statewide. In 1973 the State enacted legislation in order to encourage public awareness of spending and taxing decisions of local elected officials. This legislation was amended in 1980 by the "TRIM BILL" (Truth in Millage). Under the TRIM Bill, a "rolled-back tax rate" is defined as the millage rate that would produce thesame ad valorem taxes in each current year as were levied in the prior year exclusive of any increase in assessments resulting from new construction. No local taxing authority can exceed the rolled-back tax rate by more than 8% without approval of a simple majority vote of the governing board of the taxing authority. The funding requirements mandated by general law whic5 have not been funded by state revenues, and capital outlay projects mandated by court order, are exempt from the 8% limit on millage increases. If the tax rate established by the governing board exceeds the rolled-back tax rate, each taxpayer must be notified by first class mail of the amount by which his taxes will be increased prior to the public hearing required to be held for the adoption of the final budget and millage rate. The rlRIM Bill and an amendment to the Florida Constitution approved by the electorate on O~tober 7, 1980, provide that the homestead exemption shall be increased to S15,000 with respect to 1980 assessments, $20,000 with respect to 1981 assessments, and $25,000 with respect to assessments for 1982 and each year thereafter, for every person who is entitled to homestead exemption who has been a resident of the State for five consecutive years prior to claiming the exemption. On December 16, 1982, the Florida Supreme Court invalidated the five year residency requirement for homestead exemption. That decision is currently pending on re-hearing, and, until final resolution of that decision by the Supreme Court, the five year residency requirement remains in full force and effect. Should the Supreme Court uphold its 3 decision invalidating the residency requirement, it will have the effect of reducing the taxable assessed valuation of the real property within the City. A reduction in the taxable assessed valuation will result in a smaller tax base against which to levy a millage rate to satisfy the debt service requirements for the Bonds. Neither the TRIM Bill nor the constitutional amendment would limit or restrict the ability of the City to levy ad valorem taxes without limitation as to rate or amount for the purpose of paying debt service on its general obligation bonds. LEVY OF AD ~ TAX~ All taxes are due and payable on November 1 of each year or as soon thereafter as the tax roll is certified and delivered to the Tax Collector. A notice is mailed to each property owner on the tax roll for the taxes levied by the County, School Board, and other taxing authorities. Taxes may be paid upon receipt of such notice with discounts at the rate of 4% if paid in the month of November; 3% if paid in the month of December; 2% if paid in the month of January; and, 1% if paid in the month of February. Taxes paid during the month of March are without discount. All ~npaid taxes on real and personal property become delinquent on April 1 of the year following the year in which the taxes were levied. The delinquent real property taxes bear interest at the rate of 1-1/2% per month from April 1 until a certificate is sold at auction, from which time the interest rate shall be as bid by the buyer of the certificates. Personal property taxes bear interest at a rate of 1-1/2% per month from April 1 until paid. On or before April 15th of each year, delinquent personal property ~taxes must be advertised, and after May 1 a petition asking for the ratification and confirmation of tax warrants may be filed in the Circuit Court and upon issuance of an order the personal property may be levied, seized and sold. State law provides that tax liens are superior to all other liens. The Tax Collector advertises once each week for four consecutive weeks in a local- newspaper selected by the Board of County Commissioners at their February meeting. Tax certificates are sold to the lowest bidder, based on the interest rate bid, on or before June 1 for unpaid tax bills. ~rGNICIPAL BOND INSURANCE The City has received a commitment for a municipal bond insurance policy on the Bonds from the Municipal Bond Insurance Association ("MBIA"). The premium on the policy is to be fully paid in advance from the proceeds of the Bonds if such insurance is elected by the successful bidder as a condition of such bid. The issuance of such policy is a precondition to delivery of the Bonds if the winning bidder elects to have the City obtain such insurance. The policy provides that upon notice to MBIA that the City has failed to deposit funds for the full payment of the principal of and interest on the Bonds with the Paying Agent on the date required, the insurer will promptly deposit funds with Citibank, N.A., New York, New York as Fiscal Agent for MBIA sufficient to cover fully the deficit in the Paying Agent's account. The 4 policy does not insure against nonpayment caused by the insolvency or negligence of the Paying Agent or Citibank, N.A., or nonpayment of redemption premiums. Upon payment by MBIA of any Bonds or coupons, MBIA becomes the owner thereof. MBIA is organized under the laws of the State of New York · · underwriting unincorporated association consisti-~ ^~ ~:-- --as a 3olnt cc~panies. The members of MBIA a ' '~ ~ ~-ve member insurance nd their respective percentage participations therein are as follows: The Aetna Casualty and Surety Company, 33%; Firemen's Fund Insurance Company, 30%; Travelers Indemnity, 15%; Aetna Insurance Company, 12%; and Continental Insurance Company, 10%. In the event that MBIA is required to make payments under the policy, the liability of each of the members thereof will be limited to its percentage participation. No representation is made herein as to the ability of MBIA or its member insurance companies to meet their respective obligations under the MBIA policy. Information relating to the financial condition of MBIA and its members should be obtained directly from MBIA at 34 South Broadway, White Plains, New York 10601 or (914-946-4242). MBIA has obtained a ruling from the Internal Revenue Service that neither the insurance protection nor payment thereunder will alter the exemption from Federal income taxes of interest on bonds so insured. NOVEMB~, 1984 CONSTITUTI~ p~ ON RE~;~FOE LIMITATIONS At the November, 1984 general election, the people of the State of Florida are expected to vote on a citizens initiated constitutional amendment to limit the amount of" ,, revenues (defined to include ad valorem taxes, Ether taxes and all other receipts) which the State and each of its taxing units, such as counties, municipalities and special taxing districts will be allowed to collect in any subsequent fiscal year. The proposed limitations appear arbitrary, and it is impossible to assess the effect such limitations, if approved, may have on the ability of the State and such taxing units to meet their operating, capital and debt requirements in the futur~.~- · The effect of the approval of such amendment on bonds issued prior to such approval is also difficult to assess, however, the amendment does provide that revenue limits may be exceeded to the extent necessary to avoid impairment of obligations of contracts and bonds existin on date of the · . g the effective · ,,If thi.s saving provision is to have any effect, it · u~u revenue amounEs necessary to meet the debt service on bonds issued prior to November, 1984 would have to be authorized to be collected in each fiscal year in excess of the otherwise operative "revenue" limitations h~posed by the amendment. However, until the amendment is approved, if it is approve~, and the relevant implementing legislation is adopted and court decisions interpreting the effect of the amendment and such legislations are rendered, no firm assessment can be made of its effect. 5 DI~ITION OF ~ P~~ Ail n~neys received frc~ the sale of the Bonds shall k~ deposited in a special account and applied as follows: A. All accruc~ interest shall be det~sitc~ in the Bond Interest Account in the Sinking ~nd. B. The moneys in the sI~cial account shall be used to pay engineering fees, legal fees, fees of financial advisors and related costs incurred in connection with the issuance of the Bonds. C. The balance of moneys shall be deposited in the Construction Fund to finance the cost of the Project. ESTIMATED SOURCES AND USES OF FUNDS sources-of Funds Par amount of Bonds Plus Accrued Interest Less Discount Estimated Interest Income to be earned during construction TOTAL SOURCES Sl,750,000 S Uses of Funds ~.~ ~1.~ ~11~_~L--accrued Interest Legal, Fiscal & Administrative Costs MBIA Insurance Premium Project Construction and Contingencies TOTAL USES FUIIIREFI~~P~S OFT HE CITY At the present time the City is considering proceeding with a restructuring/refunding of its presently outstanding $15,405,000 Water and Sewer Revenue Bonds of various series in the near future. In conjunction with this proposed refinancing, the City is considering the issuance of additional water and sewer revenue bonds and is currently preparing a master plan for possible construction of a second water plant. The timing of the improvement financing has not yet been finally determined and some or all of this portion of the planned financing may be simultaneous restructuring/refunding. All of such Water with the above describ~=d when issu and Sewer Revenue Bonds, if and ed, would be secured by revenues of that utility system only and not by any other taxes or revenues of the City. The City is not currently planning the issuance of any additional general obligation bonds or limited tax bonds, however, the City is studying its capital needs and may issue other general obligation bonds if the need arises. No other types of bond issues other than those described above and the Bonds herein offered are planned at the present time. BOND YEAR ENDING AUG. 1 1983 1984 1985 $ 35,000 1986 35,000 1987 40,000 1988 45,000 1989 45,000 1990 50,000 1991 55,000 1992 60,000 1993 65,000 1994 75,000 1995 80,000 1996 90,000 1997 95,000 1998 105,000 1999 115,000 2000 125,000 2001 140,000 2002 150,000 2003 165,000 2004 180,000 TOTAL PRINCIPAL INTERESt* DEBT SERVICE *Bond · n~eres~ payments were calculated on the basis of an assumed coupon rate of 9.25% for- ~3feas~h~l~" purposes on-y.1 average The City is a municipal corporation organized and existing under the laws of the State of Florida. Among its other powers, the City is authorized by the provisions of Chapter 166, FlOrida Statutes and by the City Charter of the City, Chapter 24398, Laws of Florida, Acts of 1947w as amended, to issue revenue bonds and ad valorem tax supported bonds, such as the Bonds. The City is governed by a City Council (the "Council") consisting of five members who are elected to serve staggered two-year terms. The candidate in each year's Council elections receiving the most votes serves as vice'mayor during the first year and as mayor during the second year of his two-year term. The Council is presently composed of James R. Warnke, Mayor; Carl zi~merman, vice-Mayor; Joe deLong, Councilmember; Samuel Lamar Wright, Councilmember; and Nick Cassandra, Councilmember. Administration of the 0~erations of the City is carried out by a City Manager who is appointed by the Council and who is an employee of the City. The present City Manager is Peter L. Cheney, who has served in that capacity since 1979. Mr. Cheney, who holds a Bachelor of Arts degree from Wesleyan university, Middletown, Connecticut, and a Master of Public Administration degree from Cornell University, Ithaca, New York, was previously the City Manager for the City of~ Keene, New Hampshire, for a period of six years, and prior to that, Deputy City Manager of the City of Rockville, Maryland. City financial operations, recordkeeping, and internal auditing are under the City's Director of Finance, Grady Swarm. The City has been awarded the Municipal Finance officers Association (MFOA) Certificate of Conformance for its comprehensive annual financial reports for the fiscal years ended September 30, 1979, 1980 and 1981. A copy of the 1982 audited comprehensive annual financial statement is attached as Appendix D. Fiscal Year 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 Note: General 8.460 5. 550 7.430 7. 224 7.466 6,677 5,997 5. 885 8. 413 6.577 5.120 City of Boynton Beach Special Debt Revenue Service School Funds F~nds Total District County Total .150 .070 8.680 10.400 ~6.143 25.223 .100 .050 5.700 10.400 6.823 22.923 .130 .040 7.600 10.300 5.780 23.680 .136 .040 7.400 8.480 6.075 2.1.955 .114 .050 7.630 8.400 6.065 2.2.095 .120 .040 6.837 9.970 6.150 22.957 .074 .020 6.091 9.750 5.981 21.822 .066 .024 5.975 8.300 6.073 2(].348 .070 .029 8.512 7.020 6.317 21.849 .066 .017 6.660 6.919 4.936 18.515 .062 .... 5.182 6.133 4.182 15.497 Tax rate limits _ Scope of tax rate limit - Taxes due Taxes delinquent _ Discount allowed _ Penalties for delinquency - Tax collector _ Tax collector's conraission - 10 mills per Florida Statute 200.081 No municipality shall levy ad valorem taxes for real and tangible personal property in excess of 10 mills of the assessed value, except for special benefits and debt service on obligations issued wi th the approval of those taxpayers subject to ad valorem taxes. March 31 April 1 4% November; 3% December; 2% January; 1% February 2-1/2% after April 1, increasing 1/2% each 10 days to maximum 5% Palm Beach County None Source: Financial Statements of the City 9 li ~'~C'l"EU F~L~L ~ ~ ~ CITY OF ~)YN'I'ON BF_.~%CH · FLORII3~ Comparative Statement of General Fund Revenues and Expenditures Fiscal Years Ending September 30 BEGINNING FUND BALANCE 1978 1979 1980 ...... AUDITEI> $1,032,194 $1,144,828 $1,102,342 $ 1981 1982 717~596 $ 1,084,461 REVENUE Property Taxes Franchise Taxes Public Service Taxes Licenses and Permits In. tergovernmental Rev & State Rev. County Revenue Intragovernmental Rev. Interest Earned Charges for Services Fines & Forfeitures Rents & Royalties Misc. Reserved/Designated Rev. TOTAL REVENUE 1983 BUDGET $ 475,484 $1,997,349 $2,145,179 $2,306,746 $3,165,837 S3,954,326 $3,931,300 487,737 558,306 704,770 839,539 1,004,572 1,224,500 727,819 700,740 760,124 845,960 958,832 1,096,610 378,434 392,855 430,544 486,901 400,462 557,420 1,397,395 1,438,845 1,445,518 1,591,497 1,590,065 259,380 272,512 325,030 371,045 220,810 186,500 186,500 275,500 350,000 411,500 113,012 139,729 172,091 232,030 197,632 782,298 842,370 966,689 1,135,314 1,154,332 18,189 4,558 4,371 7,829 8,849 -- 760 1,933 2,224 2,055 26,973 26,203 14,912 20,206 100,570 __ -- 92,019 25,269 76,326 $6,708,557 S7,500,247 $9,073,651 $10,080,331 $6,375,086 General Government Public Safety Public Works Culture & Recreation Fixed Charges * Other * $1,994,883 $2,192,071 3,890,331 4,891,737 1,347,351 1,706,545 1,371,473 1,601,695 57,301 297,763 $1,173,420 $1,500,594 Sl,715,058 2,409,146 2,913,819 3,482,220 1,228,633 1,415,668 1,387,176 610,218 1,056,025 1,264,166 736,850 .... 104,185 -- -- __ -- 36,373 Res/Desig. Fund Bal. Exp. TOTAL EXPENDITURES $6,262,452 $6,886,106 $7,884,993 $8,661,339 $10,689,811 C~n. Effect of Acct. Chg. -- 135,063 ..... Net Transfer .... (45,447) 503 ENDING FUND BALANCE $1,084,461 $475,484 $1,144,828 $1,102,342 S 717,596 2,612,480~ 233,37 493,34 291,500 1,617,680 11,400r--- 7,180 45,665 200,000 $12,322,450 S3,012,02 5,577,090 1,777,605 1,955,728 $12,322,450 $475,484 * Due to the implementation of the Florida Uniform Accounting System, insurance, pension and social security for the years 1979, 1980 and 1981 are distributed among the other functions. Source: Audited financial statements of the City and Current Budget 12 City of ~t~ t~_ach, Fl~ich Statement of Direct and Overlapping D~bt September 30, 1982 General Obligation Bonds Direct Debt .~ Water & Sewer Revenue Bonds, Series 1961, 1964, 1971, 1974, 1975A and 1975B, 1978 Recreational Facilities RevenueBonds, Series 1982 General Obligation Bonds (This Issue) $1,750,000 Non-Self Supporting Revenue Bonds Self-suPPC)rting Revenue 5~nds $15,405,00'0 4,000,000 Total Direct Debt Overlappin~ Debt $1,750,000 - 0 - $19,405,000 Palm Beach County General Obligation Bonds $56,730,000 Improvement Revenue Bonds (1) Water & Sewer Rev. Cert. Palm Beach County School Board General Obligation Bonds 4,865,000 $29,700,000 $56,500,000 Special Districts Southeastern Palm Beach Co. Hospital District (2) 338,000 Total Overlapping Debt S61,933,000 Overlapping Debt Applicable to City of Boynton Beach (3.7%)(2) $ 2,280,266 Total Direct and Applicable Overlapping Debt S 4,030,266 (1) Bond Anticipation Notes S29,700,000 $56,500,000 S 1,098,900 N/A $ 1,098,900 $19,405,000 (2) The 3.7% used in determining the applicable overlapping debt represents the taxable assessed valuation of the City of Boynton Beach as a percent of the taxable assessed valuation of Palm Beach County and is considered as reasonable basis for determining the impact of such overlapping general obligation debt and non-self supporting revenue debc for both the County Government and the School Board. The allocation factor, however, for the Southeastern Palm Beacb County Hospital District is 10%, because 10% of the tax base of such District is within the City of Boynton Beach. Such figures are included in the Total Applicable Overlapping Debt of the City show above. Source: City of Boynton Beach and Palm Beach County Records. Debt Ratios as of September 30, 1982 1982 Taxable Assessed Valuation 1982 Estimated population Direct General Obligation Debt per Capita Direct and Applicable Overlapping General Obligation Debt per Capita Direct General Obligation Debt as a percent of Taxable Assessed Valuation Direct and Applicable Overlapping General Obligation Debt as a percent of Taxable Assessed Valuation Direct and Applicable Overlapping General Obligation and Non-Self Supporting Revenue Debt per Capita Direct and Applicable Overlapping General Obligation and Non-Self Supporting Revenue Debt as a percent of Taxable Assessed Valuation Source: Prepared by the City of Boynton Beach and the Financial Advisor. $795,652,082 37,532 S46.63' S107.38 .22% .5065% S136.66 .6446% *This Issue pENSION F[~DOP~kTI(]~]S The City has three single-employer pension plans. The firemen and policemen are covered by separate plans and substantially all other full-time City employees are covered by the general retirement plan. Reserves for these pension funds are designated to cover future pension benefits, refund of pension contributions, actuarial deficiencies, and variations in actuarial assumptions. The schedule below reflects information on the various funds as of the latest actuarial report. The actuarial deficiencies are deferred obligations which are being funded over 30 years through employer and employee contributions and fund investment revenue. Retirement Police Firemen Trust Pension Pension Fund Fund Fund Date of actuarial valuation Actuarial present value of vested accumulated plan benefits i~ctuarial present value of nonvested accumulated plan benefits Plan assets, at cost Plan assets, at market value Actuarial deficiency Interest rate assumption used in actuarial valuation City's contribution to the plan for the year ended September 30, 1982 1-1-82 1-1-82 1-1-81' Sl,951,618 Sl,429,972 $ 979,163 S 562,767 S 148,413 $2,245,642 S2,933,848 Sl,235,501 $1,022,445 S2,691,283 $1,098,294 S 942,009 Sl,454,605 S 679,836 S 447,476 7% 7% 7% $ 45,498 S 94,856 S 280,347 The contribution amounts were determined by the City's actuaries and in compliance with. applicable Florida Statutes and are within the guidelines established by Accounting Principles Board Opinion No. 8. *Latest available data. Actuarial evaluation on this fund is only required every three years Source: Audited financial statements of the City. 14 At the present time the police force and the firefighters of the City are unionized and belong to the Teamsters Union and the International Association of Firefighters, respectively. The remaining employees of the City are not members of any union. The contracts between the City and the Teamsters Union and the International AsSOciation of Firefighters were entered into effective October 1, 1982 and run one year from the date of execution thereof. There are no present labor disputes between the City and such unions or between the City and any non-union employees, affiliations or groups. Moody's Investors Service, Inc. and Standard & Poor's Corporation ha~ issued the ratings shown on the cover page hereof with respect to the Bonds. Such ratings reflect the respective views of such organizations and an explanation of the significance of such ratings may be obtained only from the rating agencies furnishing the same. The City furnished to such rating agencies certain information and materials about the Bonds and itself. Generally, rating agencies base their ratings on such information and materials and on investigations, studies and assumptions. There is no assurance that a rating will continue for any given period of time or that it may not be lowered or withdrawn entirely by the rating agency. _Any such downward change or withdrawal of such rating may have an adverse effect on the market price of the Bonds. VALIDATION The Bonds were validated and confirmed by judgment of the Fifteent]h Judicial Circuit in and for Palm Beach County, Florida on February 23, 1983. The time for taking appeal from such judgment expired March 23, 1983. There are no appeals pending. L~%LITY Ail legal matters in connection with the issuance of the Bonds a~ subject to the approval of Brown, Wood, Ivey, Mitchell & Petty, New York, New York, Bond Counsel whose approving opinion will be available at the time of delivery of the Bonds along with customary closing documents. Certain legal matters will be passed upon by James W. Vance, Esq., City Attorney. TAX EX~FfION In the opinion of Bond Counsel, the interest on the Bonds is exempt from all present Federal income taxes and the Bonds and the income thereon are exempt from taxation under the laws of the State of Florida, except as to taxes imposed by Chapter 220, Florida Statutes, on interest, income or profits on debt obligations owned by corporations as defined in said Chapter 220, Florida Statutes. 15 LITIGATION In the opinion of the City Attorney, no legal proceedings are pending or threatened which materially affect the City's ability to perform its obligations to the holders of the Bonds or materially affect the financial condition of the City. There is no litigation or controversy of any nature now pending or threatened to restrain or enjoin the issuance, sale, execution or delivery of the Bonds or in any way contesting the validity of the Bonds or any proceedings of the City taken with respect to the authorization, sale or issuance of said Bonds or the pledge or application of any moneys provided for the payment of the Bonds or having any significant effect on the receipts of the ad valorem taxes pledged as security for the Bonds. The information in the foregoing pages is presented for the guidance of prospective purchasers of the Bonds described herein. The information has been compiled from official and other sources and, while not guaranteed by the City, is believed to be correct. So 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 representation of fact, and no representation is made that any of the estimates will be realized. ~RIZATION OF AND CERTIFICATION OONCERNIlqG OFFICIAL This Official Statement has been authorized and prepared by the City of Boynton Beach, Florida. Concurrently with the delivery of the Bonds, 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 Bonds, contain any untrue statement of a material fact or omit to state a material fact which should be included therein for the purposes for which this Official Statement is to be used, or which is necessary in order to make the statements contained therein, in the light of the circumstances in which they were made, not misleading. City Manager 16 The City of Boynton Beach, Florida (the "City") is located about 13 miles south of West Palm Beach, the county seat of Palm Beach County. The City has an area of about 15 square miles, bounded on the east by Lake Worth and the Intracoastal Waterway, except for a small, recent annexation which extends to the Atlantic Ocean. The area benefits from balmy ocean breezes which cool in the summer and the warm gulf stream air which moderates during the winter resulting in average temperatures in the mid-70's. Residents and visitors alike enjoy relaxed life styles geared to the outdoors because of the mild climate and unsurpassed recreational facilities. The general terrain of the City is somewhat higher than that of other areas of the lower Florida east coast. Rolling Hills, Lake Worth and the Intracoastal Waterway have added to the desirability of homesites throughout the City, which is essentially residential. However, there are many s~aall con~aercial and business concerns, including ten shopping centers within the City. West Palm Beach, fifteen minutes north, and Fort Lauderdale, thirty minutes south of Boynton Beach, provide numerous cultural advantages found in larger metropolitan areas° Govei¥,,ental Services The City of Boynton Beach has a council-manager form of government. Five council members are elected for two year terms with three elected in odd numbered years and two in even numbered years. The candidate receiving the most votes is the vice-mayor during the first year in office and mayor during the following year. The City has a full-time City Manager and Director of Finance. The City's annual audited financial statements have been awarded the Municipal Finance Officers Association (MFOA) Certificate of Conformance. The City' s police department employs 78 sworn officers and 14 administrative personnel and operates 43 vehicles available to provide coverage for the City. The police department has provided the training for and initiated the following types of special services: the SWAT Team, scuba diving unit, canine unit, burglary impact unit and a specialized traffic unit and is one of the few departments in the county capable of handling its own capital cases. The City's fire department has two stations in the City and utilizies 18 pieces of apparatus and staff cars and 56 men. The department has three paramedic rescue vehicles equipped wit~ life support systems which are maintained by paramedics and emergency medical technicians. The City operates a modern 12,000 square foot library, which was dedicated in 1974. The library contains a separate children's area, young adult area, a large meeting room, typing roan, provisions for record listening equi~raent, and quiet study areas. Special departments include business and A-1 investment, Florida material, circulating prints and posters, large print books, song books, reference and research, biographies, sports, hobbies and greatly expanded fiction and popular lending facilities. In addition, Boynton Beach is a member of the Palm Beach County Municipal/County Cooperative Library System, giving citizens access to other libraries in the County system and enabling participation in interlibrary loan networks that reach to the State level. Medieal Facilities Medical services to residents of the City and other residents of the south Palm Beach County area are provided through the three hundred & fifty-bed Bethesda Memorial Hospital located in the City. This hospital is the only one between West Palm Beach and Fort Lauderda!e offering short-term general hospital services, including surgical, obstetrical, pediatric, emergency, and medical and surgical intensive care facilities. The hospital currently employs approximately 1,200 persons and had a 1981-82 operating budget of $33 million. The medical staff includes 153 medical doctors and dentists. Bethesda is presently cc~pleting its twelfth building program at a cost in excess of S5 million for construction. It provides for the major expansion and relocation of the dietary department and the addition of fifty medical/surgical beds. The hospital offers educational-vocational opportunitites through three approved paramedic schools: the School of Radiologic Technology, School for Certified Laboratory Assistants and School for Practical Nurses. The City operates a year-round comprehensive community recreation program, which includes a public beach park complete with picnic, snack and restaurant facilities and which is protected by certified lifeguards. The hub of the City's athletic, cultural, instructional and social programs for adults and youths on a continuing basis is the City Civic Center on Ocean Avenue. The activities include dancing and sports, as well as other training in various areas of personal enrichment and recreation. The City also sponsors day camps, sports clinics and special events and trips for area ~esidents. Located in the City's recreational complex on Ocean Avenue are a senior citizens' shuffle board center, lighted tennis and handball courts, and a s~all park with playground equipment. The City also maintains approximately twenty neighborhood parks which are well equipped, a neighborhood center and swimming pool. The City is currently developing a 30 acre park complex, the first phase of which will have tennis facilities. The emphasis is on programs to suit the needs of all ages of Boynton Beach residents. Within the City are two salt water marinas with complete marine services for power and sail boat services, as well as charter facilities for deep sea fishing trips. Six City-operated boat launch ramps offer direct access to the ocean. Fresh water fishermen can find excellent fishing in numerous nearby lakes and canals. West of the City is the Everglades area with access gained through the Loxahatchee National Wildlife Refuge. There are numerous golf courses in Palm Beach Co'unty, offering year-round play for the area's many golfers including one currently under construction by the City. A-2 ~ducation Educational opportunities in the City area are complete with pre-school to post-graduate programs available. The public schools in the Boynton Beach area are a part of the Palm Beach County school system under the administration of the Palm Beach County School Board. In the City there and six public elementary schools (grades K-5), one middle school (grades 6-8) are three high schools nearby. In addition, there are four private or church-supported schools and several private kindergarten-nursery schools. Higher educational facilities are offered by Palm Beach Junior College just a few miles north of the City and Florida Atlantic University (located in nearby Boca Raton), an upper division and graduate school which is part of the state university system. Vocational and other specialized occupational training is offered at the South Technical Education Center in the City a part of the County school system. This center provides part-time and full-time curriculums in numerous fields of training. Transportation Several major airlines serve the City through the Palm Beach International Airport, fifteen minutes north of the City in West Palm Beach, the Fort Lauderdale-Hollywood International Airport, forty minutes south, and Miami International Airport, a little over an hour's drive south of the City. Lantana Airport, located three miles north of the City, is a general aviation airport open to any non-cor~aercial, non-'et ai charter service rent ' . 3 rc~aft a~d facilities include ~^- ---~ .~ l' __ al air, raft, flying school aha repair and fuel f cili ' .Lu~ ~L~ ~rcrart. NearD Boca Ra ' - a ties services. Y ton A~rport also offers non-con~nerical The Port of Palm Beach offers facilities for ocean transportation and barge transportation on the Intracoastal Waterway. Types of cargo handled at the port include cement, fuel oil, molasses and other general cargo. Passenger rail service to all major cities is provided by Amtrak and freSght service is provided by the Seaboard Coast Line Railroad. Bus transportation is provided by Greyhound Bus Lines for long distance transportation while local bus service is provided by the Palm Beach Counzy Transportation Authority. This system permits riders to go from Lake Park in the northern portion of the county to Boca Raton, the southernmost city .of Palm Beach County. Road and highway facilities are also excellent. U.S. Highway #1 passes through the heart of the City. The Florida Turnpike, about five miles west of the City, provides transportation to the north central part of the state and as far south as the entrance to the Florida Keys. Interstate 95, which is still in the process of construction in several areas of the state, passes through the City and is nearing completion and provides close-in alternati%~ north-south transportation through the City and throughout other areas of t?~ southeastern coast of Florida. A-3 Ccmm~ic~tions Located within the City are four radio stations, two AM and two FM. Ail principal television networks are received with broadcast stations in both West Palm Beach and Miami. In addition, the City has a publ~ broadcasting, radio and television station which are in full operation. The daily newspapers serving the area are The Palm Beach Post, a morning paper and The Palm Beach Times, the afternoon paper. The Sun Sentinel, a morning paper with a Palm Beach edition is published daily in Boca Raton. The Miami Herald, a morning paper also with a Palm Beach edition is available in Boynton Beach and the Palm Beach County area. Also available are The Boynton Beach News Journal and The Boynton Beach Times, both weekly papers published every Thursday. The major secjments of the economy of the City are retail and wholesale trade, real estate, finance, tourism, agriculture, professional services and light manufacturing. The retail trade is primarily centered in the area's numerous shopping centers, including Sunshine Square, Causeway Square, Villager Shopping Center, Leisure Plaza, Ocean Plaza, Boynton Beach Shopping Plaza, Gulfstream Mall, Leisureville Shopping Center, Boynton Plaza and BoyntonWest Plaza. A full range of professional services from medical and dental care to legal counsel can be obtained in the City. Finance plays an important role in the con~nunity with nine c~nercial banks and eleven savings and loan association branch banks. Approximately twenty-five light industries are located in the City, with manufacturing products ranging from paper processing machinery to electrical switches. Motorola Corporation has begun construction of a 300,000 square foot manufacturing facility in the City which will eventually employ approximately 1,500 persons and will be one of the area's largest employers. Also, currently under development by the de Bartolo Corporation is a major regional shopping mall which will house six major department stores and 140 specialty shops. This facility will have a significant impact on the retail trade portion of the City's economy. The City is seeking additional light industry which would be compatible with the overall plan of coranunity development. Agricultural acreage totals approximately 32,000 acres west of the City and has a significant impact on the local economy. The sugar industry is of great importance to the economy of Palm Beach County. In 1981, the value of . ne roduction was $509,599,337. The value for all agricultural sugar ca P ' ~-~ .... ~^n~ in 1981 totaled $874,319,669. roduction (including' ' sugar cane pruuu~?~:nc±uGes, ....... De~t, ua~i~'~3 COWS, horses, ~her agricultural production in the County z sod, flowers, citrus and tropical fruits and vegetables. Clubs, organizations, Cultural Activities and Churches The City residents participate in more than 80 local civic clubs and organizations, many of which have national affiliations. These groups fill a range of needs and interests from purely social and recreational to co~nunity and philanthropic, and there are organizations for children as well as adults. A-4 With the ease of travel on Interstate 95 running through the City, all the cultur.al advantages of the nearby metropolitan areas . · . ~C~o~_u_n~l,t~y .theatre, professional theatre production~ _~a_r_e_ .readily available. ~L~ y~erles mus ~ ~ ........... ~, ~u~c~r~s, opera, b~lle , eum~, ~=~uu~ an~ rlim series are 1~ ..,~;~ ~u: _ .. . t, a~ -~u~,~, ~uir~y mlnuEes driving time of the City. Little theatre for school-a · offered .t,hrough the City's recreation, department,_ , xs:- ueslgne~~ ' ge. dtoCh~ldren,encouragealSOand develop ~ne talents of the area s youth. The City is also the home of several well-known artists and during March of each year the City and the Chamber of Con~nerce co-sponsor the City' s G.A0 L.A. (Great American Love Affair), a five-day extravaganza featuring artists, exhibits, and entertainment for all ages. The City has also recently instituted a CommUnity Concert series in an attempt to provide diverse musical residents, entertainment on a regular basis for City Twenty-six churches serve the City and provide worship services for all major denominations. Many of these churches make their facilities available as activity centers for programs which members and non-members alike attend. A-5 GROWTH INDICES CITY OF BOYNTON BEACH, FLORIDA Year Bo!;nton Beach 1960 10,467 1970 18,115 1980 35,624 1981 (est.) 36,489 Population Trends Average Annual % Increase Palm Beach Count~ 228,106 5.63% 348,993 7.00 576,863 2.24 615,165 Average Annual % Increase 4.34% 5.15 6.66 1982 (est.) 37,532 2.85 637,940 3.70 Sources: U.S. Census data for 1960, 1970, and 1980. Florida Estimates of ~, Bureau of Economic and Business Research, UniVersity of Florida for 1981 and 1982. Palm Beach County Area Planning BOard for estimated 1981 and 1982 County population. Commercial 1982 $226,552,205 1981 192,462,595 1980 181,824,733 1979 175,770,323 1978 183,886~311 1977 200,264,778 Postal Receits~(1) School Enrollment (3) (Public & Private) (K-12) 1982 N/A 1982 1981 $1,659,469 1981 1980 1,384,623 1980 1979 1~527,502 1979 1978 1,063,385 1978 1977 994,600 1977 Retail Sales (1) Electric Meters (Residential) 4,769 (4) 1982 18,204 6,695 1981 17,780 5,009 1980 17,040 4,972 1979 16,312 4,956 1978 15,648 4,728 1977 15,038 Building Permits (Total Value) Telephones (Residential-Main) 1982 27,985 1981 24,902 1980 20,752 1979 21,396 1978 18,662 1977 17,162 New Dwelling Units 1982 S160,932,522 1982 $50,894,483 1982 403 1981 114,370,540 1981 23,869,587 1981 325 1980 107,539,261 1980 28,376,463 1980 376 1979 85,175,691 1979 46,044,530 1979 700 1978 69,366,651 1978 37,536,333 1978 731 1977 54,165,081 1977 33,491,216 1977 509 (1) Full year's total as of June 30 each year. (2)-Figures are for resources of associations with branches in Boynton Beach. (3) Enrollment as of February each year. (4) Enrollment in Boynton Beach public schools (K-12) only. source: Palm Beach Co. School Board-Area superintendent's office. Source: Greater Boynton Beach Chamber of Commerce. A-6 CITY OF BOYlVION BEACH FIVE MAJOR EMPLOYERS Firm Bethesda Memorial Hospital City of Boynton BeaCh R. E.L. Inc. Metal Products of Palm Beach Gulf Stream Lumber Co. Industry Hospital City Government Radar & Radio Transmitters Metal Products Lumber Source: Greater Boynton Beach Chamber of Con~erce No. of Employee{ 1,200 (est.) 40O 148 125 100 CITY OF BOYNTON BEACH* TEN LARGEST TAXPAYERS Name Taxable ~ Assessed Valuation Summit Assoc., Ltd. Reitco Develot]nent Corp. Gulfstream Harbor Assoc. F & R Builders C & H Properties Ronto Developers of Florida G. R. Palm, Assoc. Nicholas D. Athans City National Bank of Miami The Building Company Amount of Taxes Paid in last Tax Roll Year $14,362,713 $244,332 8,218,146 137,694 6,012,311 98,065 5,261,020 86,828 4,376,731 72,596 4,266,830 72,258 4,336,352 71,462 3,899,676 63,797 3,454,499 56,345 3,421,788 55,812 * Source: County Property Appraiser's Office. These are preliminary only and are subject to change based on further study. A-7 Pi~ BF_J~CH CK3{]~, FLORII3A Pa3~n B~ac~ C~ty, Florida (1980 Census ~ulation 576,863) is l~at~ on ~e sou~east Florida ~st, ~=ded on the east ~ the Atlantic ~e~, R~tin ~ty on ~e north, Brow~d Co~ty on the south ~d ~ke .Okee~o~e ~d Hen~ Co~ty on ~e west. ~e l~d area of ~ Co~ty is a~roxi~tely 2,230 s~are miles r~i~ approxi~tely 45 linear miles nor~ to sou~ ~d 53 line~ miles east to west. ~ere are 37 in~r~rat~ m~ici~lities l~at~ within the ~ty. ~me of ~e major cities include ~e City of West Pa~ ~a~, ~e ~ty s~t; ~lle Glade, ~e heart of Palm B~ch Co~ty's agri~lt~ activity; ~e c~stal cities of ~ton ~a~, ~a Raton, Delray ~a~ ~d Jupit~, as well as the gro~ of ~ities in ~e i~iate West Pa~ B~ area ~o~ collectively as ~e "Pa~ ~a~es". Palm ~a~ Co~ty is re~rt~ to ~ the largest agri~lt~al pr~ucing area in ~e world wi~ total a~icultural pr~uction exce~ing ~74 million dollars in 1981. ~e princi~l cr~s of the ar~ include sug~ pr~uction ~ ~u~ cr~/v~et~le pr~uction. ~ef ~d dai~ cattle pr~uction, citrus ~d tropical fruit ~d orn~tal flowers ~e also l~ge ~nents of the total aqricult~al pr~uction of ~e Co~ty. ..... s~ents of ~e e~no~ include m~ufacturing, ~e~ =~l~rat~ ~itney Aircraft jet engine facility, wi~ hi~ignt~G ,~Y7 ~ -~le; I~ Cor~ration produci~ ~uter ~ipment wi~ e~lo~ent or , F~ - - addition, a n~ 4,500 ~ployees ~d Sou~ern ~11 wi~ ~lo~ent ct z, 500. In ~t~ola facility presently ~der construction in ~ton ~ach will e~l~ 1,500 ~le in its first phase alone. Tourism, service industries ~ w~lesale ~d retail ~ade also co,rise large sectors of the area's echo,. Palm ~a~ C~nty, Florida E~lo~ent Statistics ~ng ~e major ~pl~ers l~at~ in Palm B~ Co~ty as of Au~st, 1981 t~e~ wi~ their pr~ucts ~d n~r of e~l~ees are ~e followi~: Firm Location Pratt &Whitney Aircraft IBM Corp. Southern Bell Telephone Bethesda Memorial Hospital Florida Power & Light Palm Beach Newspapers, Inc. U.S. Sugar Corp. Northern Telecom, Inc. solitron Siemens Corp. Mitel, Inc. West Palm Beach Boca Raton County-wide Boynton Beach County-wide County-wide Belle Glade Mangonia Park Riviera Beach Boca Raton Boca Raton *Off Season (2,123 in Season) Source: Industry No. of Employees _Area Planning Board of Palm Beach County. Jet Engines 7,200 Computer Equipment 4,500 Conmunications 2,500 Hospital 1,200(est.) Electrical Power 1,094 Newspaper 1,015 sugar Processing 720* Printed Cir. Boards 718 Electronic components 650 Teleco~nuncations R&D 600 Electronic components 575 A-8 Palm Beach County, Florida Employment Statistics (Cont 'd, ) Estimated Employment In Nonagricultural Establishments In Palm Beach County (in thousands) 1(~00 . __ l~onth of June 1982. ~ .... ~9~u~june 1979 197~ Manufacturing ~ ~ 1____ 28.2 27.8 27.4 25.6 21.6 20.1 Construction 18.1 20.1 17.8 16.5 12.1 10.9 Transportation 10.0 8.6 8.6 8.0 6.9 Trade 6.8 56.3 51.3 50.7 44.8 40.6 39.1 Finance 18.0 17.2 16.3 14.3 12.9 11.8 Service 52.1 51.6 48.0 39.1 37.2 35.7 Government 32.0 ~ ----_32'0 ----_31'2 -----_30'7 -----_26'7 -----_26'0 Total ~214' 7 208.6 200.0 179.0 158.0 150.4 Source: FloridasecurityDepartment. of Commerce; Department of Labor and Employment Unemployment Data Palm Beach County (in thousands) 1982 Civilian Labor Force 282.6 Employment 259.1 223.7 212.4 200.6 186.2 Unemployment 23.5 15.3 13.4 14.7 15.0 Unemployment Rate 8.3% 6.4% 5.9% 6.8% 7.5% Month of June 1981~ 239.0 225.8 215.3 201.2 188.4 169.2 19.2 10.2% Source: Floridasecurity.Department of Commerce, Department of Labor and Employment A-9 Palm Beach County, Florida Building Permits Building Permits (Value ~or Single Famil ~l~_~--- s °mitt~---7--~ ~393,907 1981 ~1,394,187 461,693 1980 1,364,084 454,737 1979 1,197v358 370,176 1978 940,486 264,167 1977 619,634 137,023 1976 358,267 79,99~ 1975 244,034 Source: 1981 1980 1979 1978 1977 1976 1975 1974 1973 1972 source: Area Planning Board, Palm Beach County Agricultural Production In Palm Beach County Value o~ Total ~_~_ricultural production ~874,319,669 636,915,137 556,225,194 473,186,634 422,435,575 528,829,057 679,584,026 450,468,259 362,138,728 274,344,558 Area Planning Board, Palm BeachCountY Commercial BankDeposits (in thousands o~ ~) sales Activity In Palm Beach County Gross Retail sales sales ----~00 ' s omitt~----~---- ~7,865,181 ~5,288,123 6,485,698 4,456,052 5,327,573 3,637,358 4,429,304 3,008,851 3,659,622 2,491,012 3,153,952 2,202,765 2,811,845 1,932,382 Value o~ sugar Cane Producticm $ 509,599~337 323,340,851 251,823,888 214,516,246 198,814,669 295,527,631 480,054,409 280,488,233 174,080,740 107,903,788 1981 1980 1979 1978 1977 1976 1975 1974 ~2,998,000 2,489,000 2,264,000 2,266,000 2,049,000 1,810,000 1,644,000 1, 575,000 source: Florida BankersAssociati°n A-10 APPENDIX B RESOLUTION NO. 82-MMMM RESOLUTION PROVIDING FOR THE ISSUANCE OF S1,750,000 RECREATIONAL AND MUNICIPAL BEACH FACILITIES BONDS OF THE CITY OF BOYNTON BEACH, FLORIDA FLORIDA: BE IT RESOLVED BY T~E CITY COUNCIL OF THE CITY OF BOYNTON BEACH, Section ~. It is hereby found and determined that: (a) The City Council on January 19, 1982, duly adopted Ordinance No. 82-3 authorizing the issuance, subject to the election therein provided for, of bonds of the City of Boynton Beach, Florida, in an not exceeding $1,750,000 for the purpose of providing aggregate principal amount other available funds, for paying the cost of developing recreational and funds, together with any municipal beach facilities in the City of Boynton Beach consisting of the construction of a recreational building and parking areas at the site of the municipal beach, the construction of improvements to preserve the dunes and nourish, the. beach, together, with. any equipment and landscaping necessa desirable in connection therewIth, and Ordinance No. 89 ~ .... ryor holding of a specigl bond election --~, provlaing for the on March 2, 1982, for the purpose of submitting to the qualified voters of the City of Boynton Beach the question whether said $1,750,000 bonds should be issued. (b) Said election was duly Conducted and the returns thereof were duly and regularly canvassed and certified and the City Council has accepted the certification of the Palm Beach County Canvassing Board and declared the results of said election and caused the same to be recorded in its minutes all as provided by law, and it a e . . that more than a majority of the qualifi~ ~o~m=t~. ~ r_e~rns_of said electl voting thereon voted in favor of issuing said S1,-750,000 bonds. ~=o o~ ~ne City or Boynton Beach°n other avai~~s' for of providing funds, together with any cost of developing recreational and municipal beach facilities in the City of Boynton Beach consisting of the construction of a recreational building and parking areas at the Site of the municipal beach, the construction of ~mprovements to preserve the dunes and nourish the beach, toaether with any equipment and landsca in desirable in connecti~j therewith, as setb~ndsforth in said Or ~n~SCessary or there shall be issued general obligation of the ~ity~ ~lorida, in the aggregate principal amount of BoyntNo°~ ~ss~ed at one time or in =~- ~ $1,750-000 ~ ~_ , , ueslgnated, sh=~ ~_ . ~=~ from time to ~^ _; .... ~u uonas may h~ shall be ~ ue in the denomination of $~ ~g~.J± be dated, shall=b~ numbered, shall bear interest, payabl~ .... =~cn or any multiple thereof, semi-annually, from their date or dates until their ~ayment at a rate or rates not exceeding the legal rate shall be determined at the time of sale thereof, (subject to the right of prior redemption, if any) at such t/me as exceeding thirty (30) shall be stated to mature ' years from their date or dates and may be or times not prior to their maturity date or dates and subject to ~uch other conditions, all made redeemable as shall be determined by the City Council of the City ofBoynton Beach by resolution adopted prior to the issuance of said bonds of any series thereof. B-1 Both the principal of and the interest on said bonds may be payable at a bank or trust company, in the Borough of Manhattan, City and State of New York or, at the option of the registered owner, at a bank or trust company, in Palm ~each county, in any coin or currency of the united states of America which, at the respective dates of payment thereof, is legal tender for the payment of public and private debts. Section 3. said bonds shall be signed by or bear the facsimile signature of the Mayor of the City of Boynton Beach and shall be signed by or bear the facsimile signature of the Clerk of the City of Boynton ~each and a facsimile of the official seal of the City of Boynton Beach shall be imprinted thereon. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds shall cease to be such officer before the delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such registration to be endorsed thereon, delivery, said bonds, the provisions for on each of the bonds shall be, and the statement of validation to appear respectively, substantially in the form established by resolution of the City council to be adopted prior to the sale of the bonds. said Recreational and Municipal ~each Facilities Bonds ......Section. 4.t required by Federal law, be issuable solely aSinfUllYaccordance shall, to the exten registered bonds without coupons and shall be subject to transfer with the provisions for such registration and transfer established by subsequent resolution of the City council. Section 5. For the prompt payment of the principal of and the same and Municipal Beach Facilities Bonds as the interest o~~creati°nal and taxing power of the City of shall be come due, the full faith, credit Boynton Beach are hereby irrevocably pledged. Section 6. As provided by said ordinance No. 82-3 both the principal of and the~nteres~ on said bonds are payable from unlimited ad valorem taxes to be levied annually on all taxable property within the City of Boynton Beach, which taxes are to be levied and collected at the same time and in the same manner as ad valorem taxes levied for operating expenses of the City of Boynton Beach and are to be in addition to all other taxes authorized to be levied by the City of Boynton Beach. Section 7. The City Attorney is hereby authorized and directed to take the proper proceedings for the validation of said Recreational and Municipal Beach Facilities Bonds. B-2 adoption. Sec__~tion 8. This resolution shall take effect immediately upon its PASSED AND ADOPTED by the City Council of the City of Boynton Beach,~ Florida this 3rd day of November, 1982. __/s/ Walter Marty Trauger Mayor _//s/J. R. Warnke Vice Mayor /s/ Joe deLong Council Member /s/Patricia L. Woolley Council Member /s/ Samuel LamarWright Council Member Attest: _/s/ Tereesa Padgett City Clerk B-3 THiS~PAGE INTENTIONALLY LEF~ BLANK APPENDIX C ORDINANCE NO. 82-3 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BOYNTON BEACH, FLORIDA AUTHORIZING THE ISSUANCE, SUBJECT TO THE ELECTION HEREIN PROVIDED FOR, OF NOT EXCEEDING $1,750,000 BONDS OF THE CITY OF BOYNTON BEACH, FLORIDA, FOR PROVIDING FUNDS, TOGETHER 'WITH ANY OTHER AVAILABLE FUNDS, FOR PAYING THE COST OF DEVELOPING RECREATIONAL AND MUNICIPAL BEACH FACILITIES IN THE CITY OF BOYNTON BEACH CONSISTING OF THE CONSTRUCTION OF A RECREATIONAL BUILDING AND PARKING AREAS AT THE SITE OF THE MUNICIPAL BEACH, THE CONSTRUCTION OF IMPROVEMENTS TO PRESERVE THE DUNES AND THE BEACH, TOGETHER WITH ANY EQUIPMENT AND LANDSCAPING NECESSARY OR DESIRABLE IN CONNECTION THEREWITH; AND DECLARING THAT THIS ORDINANCE SHALL TAKE EFFECT IMMEDIATELY UPON ITS ADOPTION. WHERE~S, it is necessary that the City of Boynton Beach develop recreational and municipal beach facilities, of the City ofBoynton Beach consisting of the construction of a recreational building and parking areas at the site of the municipal beach, the construction of improvements to preserve the dunes and the beach, together with any equipment and landscaping necessary or desirable in connection therewith; and WHEREAS, to pay all or a part of the cost of the above, it is necessary to issue the bonds of the City as hereinafter provided; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOYNTON BEACH, FLORIDA: Section 1. For the purpose of providing funds, together with any other available funds, for paying the cost of developing recreational and municipal beach facilities of the City of Boynton Beach consisting of the construction of a recreational building and parking areas at the site of the municipal beach, the construction of improvements to preserve the dunes and the beach, together with any equipment and landscaping necessary or desirable in connection therewith, there shall be issued, subject to the election hereinafter provided for, bonds of the City of Boynton Beach, Florida, in an aggregate principal amount not exceeding one million seven hundred fifty thousand dollars ($1,750,000), maturing at such time or times not exceeding thirty (30) years from their date or dates as may be determined by the City Council, and bearing interest at a rate or rates not exceeding the maximum rate then permitted by law, and to be payable from unlimited ad valorem taxes. Section 2. A special election is hereby called to be held on March 2, 1982 in conjunction with the regular municipal election to be held on such dater for the purpose of submitting to the qualified electors of the City the question whether such bonds shall be issued. C-1 Section 3. This ordinance shall be read in full at two separate meetings not less than ten (10) days apart and shall at least seven (7) days prior to its passage on second reading be noticed once in a newspaper of general circulation in the City of Boynton Beach, which notice shall state the date, time and place of the meeting at which this ordinance will be passed on second reading, the title of this ordinance, the place where this ordinance maybe inspected by the public and shall also advise that interested parties may appear at said meeting and be heard with respect to this ordinance. Section 4. This ordinance shall take effect i~mediately upon its adoption. FIRST READING this 5th day of January, 1982. SECOND READING and FINAL PASSAGE this 19th day of January, 1982. CITY OF BOYNTON BEACH, FLORIDA AT~EST: /s/Tereesa Pad~ett City Clerk (Corporate Seal) By /s/ Edward F. Harmenin~ Mayor /s/Walter MartyTrauger Vice Mayor /s/ Joe deLon~ Council Member /s/Patricia L. Woolle¥ Council Member /s/ Samuel LamarWri~ht Council Msmber C-2 ~ ~' APP~/~DIX D (2~3{~]3~]]~UC) ~[ID~ FI'N2{~N~ ~ OF 'I'HE C~ I>-1 Contents Combined Financial Statements CITY OF BOYNTON BEACH, FLORIDA September 30, 1982 Report of Ernst & Whinney, Independent Certified Public Accountants ............... · Combined Balance Sheet--All Fund Types and Account Groups .......... Combined Statement of Revenue, Expenditures and Changes in Fund Balance--All Governmental Fund Types and Expendable Trust Funds · g i ~ g .................. Combined Statement of Revenue, ~x~e d t r s and Encumbrances--Budget and Actual--General Fund and Other Governmental Fund Types for Which Annual Budgets Have Been Legally Adopted ...................... Combined Statement of Revenue, Expenses and Changes in Retained Earnings/Fund Balance--Proprietary Fund Type and PenSion Trust, Funds g ~ ~ ~ i { ~ ~i~ig i ' ' ' Combined Statement of Changes i i a c a o n - proprietarY Fund Type and Pension Trust Funds ................ Notes to Financial Statements ......................... Page Number 10 11 15 17 21 22 24 D-2 Ernst &Whinney Certified Public Accountants 310 Okeechobee Boulevard West Palm Beach, Florida 33401 305/655-8500 The Honorable Mayor and City Council City of Boynton Beach Boynton Beach, Florida We have examined the combined financial statements of the City of Boynton Beach, Florida as of and for the year ended September 30, 1982~ aS listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we con- sidered necessary in the circumstances. In our opinion, the combined financial statements referred to above present fairly the financial position of the City of Boynton Beach, Florida at September 30, 1982, and the results of its operations and the changes in financial position of its proprietary and certain fiduciary fund types for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year, after giving retroactive effect to the change in the method of accounting for water and sewer capital facilities fees as described in Note L to the financial statements. West Palm Beach, Florida January 14, 1983 -10- CO~IBINED BALANCE SHEET--ALL FUND TYPES AND ACCOUNT GROUPS CITY OF BOYNTON BEACH, FLORIDA September 30, 1982 Governmental Fund Types Special Capital General Revenue Projects ASSETS Cash Equity in pooled cash and investments--Note A Investments--Note A Interest receivable Accounts and notes receivable, net Taxes receivable, delinquent--Note A Less allowances for uncollectible taxes Other receivables Advance for municipal beach improvements-- Note J Due from other funds--Note K Due from ather governments Prepaid expenses Inventories--Note A Restricted assets--Note H Deferred charges Investment in Regional Wastewater Treatment Plant--Note B Property, plant and equipment-- Notes A, B and G 49,963 35,754 110,559 335 188,876 85,701 ( 85,701) 31,454 S $ 47,488 399 190,745 275,000 955 1,789 350 11,979 310,068 56,028 74,092 36,450 4,000 34,617 135 866,083 $ 239,323 $ 355,630 -11- Proprietary Fund Type Enterprise $ 25 515,557 1,847,769 37,594 246,019 9,026,780 126,685 5,558,221 36,538,502 53,897,152 Fidicuary Funds 49,192 12,329 6,802,541 93,737 15,200 869 6,973,868 AccounE Group General Fixed Assets 10,767,251 10,767,251 Total (Memorandum Only) $ 99,180 611,527 9,226,614 134,410 450,445 85,701 ( 85,701) 31,454 11,979 310,937 130,120 40,450 34,617 9,026,780 126,820 5,558,221 47,305,753 $ 73,099,307 -12- COMBINED BALANCE SHEET--ALL FUND TYPES AND ACCOUNT GROUPS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1982 LIABILITIES AND FUND EQUITY Liabilities Accounts payable Notes payable Accrued payroll deductions Refundable deposits Contracts payable Other payables Due to other funds--Note K Due to fiscal agent Due to other governments Revenue collected in advance Liabilities payable from restricted assets Revenue bonds payable, net of unamortized discount--Notes B and F Trust deposits TOTAL LIABILITIES Governmental Fund Types Special Capital General Revenue Projects 177,399 4,991 52,502 9,566 1,423 4,102 48,597 92,019 $ 4,325 $ 70,533 101,925 11,000 390,599 117,250 70,533 Fund Equity Investment in general fixed assets-- Notes A and G Contributions in aid of construction-- Notes B and L Retained earnings--Notes B and L Reserved for revenue bond debt service Reserved for renewal and replacement Reserved for capital improvements Unreserved Fund balance Reserved for encumbrances--Note A Reserved for special projects--Note A Reserved for inventories--Note A Reserved for actuarial deficiency and employer's contributions--Notes A and C Reserved for retirement benefits and refund of employees' contributions-- Notes A and C Unreserved Designated for subsequenn year's budgen Designated for specific purposes and projects Undesignated (deficit) TOTAL FUND EQUITY 16,232 64,937 34,617 4,436 200,000 155,221 4,477 475,484 108,874 27,075 160,781 94,998 11,006 122,073 285,097 $ 86__6,083 °~ ' 315 $ =~9,323 $ ,630 -13- Proprietary Fund Type Enterprise Fidicuary Funds Account Group General Fixed Assets Total (Memorandum Only) 303,154 2,357 28,810 138,773 260,670 273,891 31,717 1,141,423 18,762,536 20,943,331 $ 15,094 35,165 62,858 113,117 $ 570,505 7,348 52,502 38,376 240,698 1,423 310,937 273,891 80,314 92,019 1,141,423 18,762,536 62,858 21,634,830 23,324,302 1,332,661 198,598 744,555 7,353,705 2,581,917 10,767,251 10, 23, 1, 767,251 324,302 332,661 198,598 744,555 353,705 20,668 64,937 34,617 2,581,917 'See notes 32,953,821 $ 53,897,152 to financial 6,095,543 ( 1,&16,709) 6,860,751 $ 6,973,868 statements. -14- 10,767,251 $ 10,767,251 6,095,543 308,874 343,077 ( 1,706,228) 51,464,477 $ 73,099,307 CO~INED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE--ALL GOVERNmeNTAL FU~ TYPES ~ EXPENDABLE TRUST FUNDS CITY OF BOYNTON BEACH, FLORIDA Year Ended September 30, 1982 General Revenue--Note A Taxes Licenses and permits Intergovernmental Intragovernmental Interest and dividends Charges for services Fines and forfeitures Developers' contributions Rents and royalties Miscellaneous Reserved/designated revenue Expenditures--Notes A and D Current General government Public safety Public works Culture and recreation Social services Special projects Operating expenditures Debt service Redemption of bonds Interest and fiscal charges Reserved/designated fund balance expenditures REVENUE OVER (UNDER) EXPENDITURES Fund balance, October 1, 1981 Residual equity transfers FUND BALANCE, SEPTEIiBER 30, 1982 5,917,730 400,462 1,810,875 411,500 197,632 1,154,332 8,849 2,055 100,570 76,326 10,080,331 2,192,071 4,891,737 1,706,545 1,601,695 297,763 10,689,811 ( 609,480) 1,084,461 503 $ 475,484 -15- Governmental Fund Types Fiduciary Fund Type Special Debt Capital Expendable Revenue Service Projects Trust Total (Memorandum Only) 39,493 $ 10,372 31',794 260,519 34,971 273 296,359 57,547 379 91,221 154,255 $ 5,967,595 400,462 2,107,234 411,500 378,467 1,569,106 8,849 34,971 2,055 100,949 76,326 366,777 10,645 354,285 245,476 11,057,514 3,032 274,465 218,469 10,000 487 495,966 10,487 ( 129,189) 158 251,378 229 ( 116) ( 387) S 122,073 $ 44,910 108,059 11,321 321,639 29,772 515,701 161,416) 446,513 285,097 71,674 71,674 173,802 591,406 $ 765,208 2,240,013 4,999,796 1,992,331 1,923,334 29,772 218,469 71,674 I0,000 487 297,763 11,783,639 ( 726,125) 2,373,987 $ 1,647,862 See notes co financial statements. -16- COMBINED STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES-- BUDGET AND ACTUAL--GENERAL FUND A~ND OTHER GOVERN~IENTAL FUND TYPES FOR WHICH ANNUAL BUDGETS HAVE BEEN LEGALLY ADOPTED CITY OF BOYNTON BEACH, FLORIDA Year Ended September 30, 1982 General Fund Budget Actual Revenue--Note A Taxes $ 5,750,700 $ 5,917,730 Licenses and permits 570,200 400,462 Intergovernmental 1,682,791 1,810,875 Intragovernmental 411,500 411,500 Interest ~326,500 197,632 Charges for services 1,269,785 1,154,332 Fines and forfeitures 10,000 8,849 Rents and'royalties 2,400 2,055 Miscellaneous 72,805 100,570 Expenditures and encumbrances-- ~Notes A and D Current General government Public safety Public works Culture and recreation Social services Special projects Debt service Redemption of bonds Interest and fiscal charges REVENUE OVER (UNDER) EXPENDITURES AND ENCUliBRANCES--BUDGETARY BASIS Variance Favorable (Unfavorable) 10,096,681 10,004,005 167,030 (169,738) 128,084 ( 128,868) (115,453) ( 1,151) ( 345) 27,765 (92,676) 2,208,674 2,192,255 4,860,041 4,890,163 1,682,203 1,699,236 1,750,763 1,601,536 16,419 ( 30,122) ( 17,033) 149,227 10,501,681 10,383,190 $( 405,000) $( 379,185) 118,491 $ 25,815 -17- Special Revenue Fund Types Special Tax Levy - Publicity Fund and Sanitation Capital Replacement Fund Budget Actual Variance Favorable (Unfavorable) Debt Service Fund Type Budget Actual Variance Favorable (Unfavorable) 39,850 ~ $ 39,493 $( 357) $ 10,395 $ 10,372 $( 23) 650 5,882 5,232 256,400 260,519 4,119 100 273 173 296,900 305,894 8,994 10,495 10,645 150 $( 313,497 274,465 39,032 41,250 40,871 354,747 57,847) $( 315,336 9,442) 379 39,411 $ 48,405 10,000 495 10,000 487 10,495 10,487 $ $ 158 8 158 -18- CObiBINED STATEMENT OF REVENUE, EXPENDITURES AND ENCUMBRANCES-- BUDGET AND ACTUAL--GENERAL FU~D AND OTHER GOVERNMENTAL FUND TYPES FOR ~HICH ANNUAL BUDGETS HAVE BEEN LEGALLY ADOPTED--CONTINUED CITY OF BOYNTON BEACH, FLORIDA Year Ended September 30, 1982 Revenue--Note A Taxes Licenses and permits Intergovernmental Intragovernmental Interest Charges for services Fines and forfeitures Rents and royalties Miscellaneous Expenditures and encumbrances-- Notes A and D Current General government Public safety Public works Culture and recreation Social services Special projects Debt service Redemption of bonds Interest and fiscal charges REVENUE OVER (UNDER) EXPENDITURES AND ENCUMBRANCES--BUDGETARY BASIS Capital Projects Fund Type Federal Revenue Sharing Fund Budget Actual Variance Favorable (Unfavorable) $ 260,859 296,359 30,000 57,459 35,500 27,459 379 290,859 354,197 379 63,338 149,491 43,917 120,176 106,783 27,870 11,267 373,897 324,670 26,000 29,772 105,574 13,393 16,603 49,227 ( 3,772) 697,434 516,409 $(406,575) $(162,212) 181,025 $ 244,363 -19- Totals (Memorandum 0nly) Budget Actual Variance Favorable (Unfavorable) 5,800,945 570,200 1,943,650 411,500 357,250 1,526,185 10,000 2,400 72,805 10,694,935 $ 5,967,595 400,462 2,107,234 411,500 261,246 1,414,851 8,849 2,055 100,949 10,674,741 $ 166,650 ( 169,738) 163,584 ( 96,004) (111,334) ( 1,151) ( 345) 28,144 ( 20,194) $( 2,358,165 4,980,217 2,023,570 2,124,660 26,000 41,250 10,000 495 11,564,357 869,422) $( 2,236,172 4,996,946 1,984,968 1,926,206 29,772 40,871 10,000 487 11,225,422 550,681) 121,993 ( 16,729) 38,602 198,454 ( 3,772) 379 338,935 $ 318,741 · Sec~notes to financial statements. -20- COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS/FUND BALANCE--PROPRIETARY FUND TYPE AND PENSION TRUST FUNDS .CITY OF BOYNTON BEACH, FLORIDA Year Ended September 30, 1982 Revenue Charges for services Contributions Intergovernmental Investment income Miscellaneous Expenses Benefit payments Refunds to terminated members Operating expenses Depreciation and amortization-- Notes A and B Nonoperating expenses REVENUE OVER (U~DER) EXPENSES Retained earnings/fund balance, October 1, 1981, as originally reported Prior period adjustment--Note L RETAINED EARNINGS/FUND BALANCE, OCTOBER 1, 1981, AS RESTATED Transfer of depreciation on contributions in aid of construction--Note B RETAINED EARNINGS/FUND BALANCE, SEPTEMBER 30, 1982 Proprietary Fund Type Enterprise $ 4,599,588 902,351 19,616 5,521,555 3,592,639 1,459,805 927,313 5,979,757 Fiduciary Fund Type Pension Trust $ 843,098 130,476 509,384 20 1,482,978 186,567 82,923 21,131 290,621 ( 458,202) 1,192,357 10,747,647 ( 1,711,496) 9,036,151 1,051,570 $ 9,629,519 4,903,186 4,903~'186 $ 6,095,543 Total (Memorandum 0nly) 4,599,588 843,098 130,476 1,411,735 19,636 7,004,533 186,567 82,923 3,613,770 1,459,805 927,313 6,270,378 734,155 15,650,833 1,711,496) 13,939,337 1,051,570 $ 15,725,062 See notes to financial statements. -21- COMBINED STATEI.IENT OF CHBJqGES IN FINANCIAL POSITION-- PROPRIETARY FUND TYPE A~ND PENSION TRUST FUNDS CITY OF BOYNTON BEACH, FLORIDA Year Ended September 30, 1982 SOURCE OF FUNDS Revenue over (under) expenses Expenses not requiring current outlay of working capital Depreciation Amortization of debt issue expense WORKING CAPITAL PROVIDED BY OPERATIONS Contributions in aid of construction Increase in current liabilities payable from restricted assets Decrease in deferred charges Increase in long-term debt APPLICATION OF FUNDS Increase in restricted assets Increase in deferred charges Increase in property, plant and equipment Decrease in long-term debt INCREASE (DECREASE) IN WORKING CAPITAL Fiduciary Proprietary Fund Type Total Fund Type Pension (Memorandum Enterprise Trust Only) $( 458,202) $ 1,192,357 $ 1,445,573 14,232 734,155 , 1,445,573 ].4,232 1,001,603 1,192,357 2,193,960 2,971,615 2,971,615 123,812 3,867 3,888,000 7,988,897 1,192,357 6,501,967 61,000 4,786,299 430,000 11,779,266 $( 3,790,369) $ 1,192,357 $( 1213,812 3,867 3,888,000 9,181,254 6,501,967 6,1,000 4,786,299 430,000 11,779,266 2,598,012) -22- COMBINED STATEliENT OF CHANGES IN FINA~NCIAL POSITION-- PROPRIETARY FUND TYPE AMD PENSION TRUST FUNDS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA Year Ended September 30, 1982 CHANGES IN COMPONENTS OF WORKING CAPITAL Increase (decrease) in current assets Cash Equity in pooled cash and investments Investments Interest receivable Accounts and notes receivable, net Due from fiscal agent Due from other funds Increase (decrease) in current liabilities Accounts payable Notes payable Accrued wages payable Refundable deposits Contracts payable Due to other funds Due to fiscal agent Due to other governments INCREASE (DECREASE) IN WORKING CAPITAL Proprietary Fund Type Enterprise $( 276,955) $ 515,557 (3,403,345) ( 15,394) 18,990 ( 217,325) ( 19,899) (3,398,371) 46,837 ( 1,575) ( 21,572) ( 41,826) ( 76,789) 221,813 273,891 ( 8,781) 391,998 $(3,790,369) $ Fiduciary Fund Type Pension Trust 28,320 1,147,458 29,863 ( 9,231) ( 1,405) 1,195,005 1,792 856 2,648 1,192,357 Total (Memorandum Only) $( 248,635) 515,557 (2,255,887) 14,469 9,759 ( 217,325) ( 21,304) (2,203,366) 48,629 ( 1,575) ( 21,572) ( 41,826) ( 76,789) 222,669 273,891 ( 8,781) 394,646 S(2,598,o12) See notes to financial statements. -23- NOTES TO FINANCIAL STATEI,~NTS CITY OF BOYNTON BEACH, FLORIDA September 30, 1982 NOTE A--SIGNIFICANT ACCOUNTING POLICIES Bases of Presentation: The financial activities of the City are recorded in separate funds and account groups, categorized and described as follows: Governmental Funds General Fund--%his fund is used no account for all financial transactions not accounted for in another fund. Revenue is derived primarily from property taxes, state and federal distributions, grants and other intergovernmental revenue. Special Revenue Funds--~hese funds are used to account for specific govern- mental revenue (other than special assessments and major capital projects) requiring separate, accounting because of legal or regulatory provisions or administrative action. Debt Service Fund--The Debt Service Fund is used to record the funding and payment of principal and interest on debt reported in the General Long-Term Debt Account Group. Capital Projects Funds--These funds are used to account for the acquisition or construction of major capital facilities other than those financed by proprietary fund operations and special assessments. Proprietary Funds Water and Sewer Fund--The Wat~ and Sewer Fund reports operations that provide services which are financed primarily by user charges, or activities where periodic measurement of net income is appropriate for capital maintenance, public policy, management control or other purposes. Boynton Beach Recreational Facilities Fund--The Boynton Beach Recreational Facilities Fund reports operations of the municipal golf course which are financed by user charges, or activities where periodic measurement of net income is appropriate for capital maintenance, public policy, management control or other purposes. Fiduciary Funds These funds, used to account for assets held in trust for others, include employee benefi[ trust funds and the Memorial Park funds. Account Group General Fixed Assets Account Group--This account group presents the fixed assets of the City utilized in its general operations (nonproprietary fixed ~sseEs). -24- NOTES TO FINB~CIAL STATEMZNTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1982 NOTE A--SIGNIFICANT ACCOUNTING POLICIES--CONTINUED Bases of Accounting: The accrual basis of accounting is followed for the proprietary funds and the pension trust funds. Their revenue is recognized when it is earned, and expenses are recognized when incurred. Unbilled Water and Sewer Fund utility charges are not recorded at year end as meter readings are performed on a cyclical basis throughout the month and unbilled usage is not determinable until readings have been recorded. Ail other funds are accounted for using the modified accrual basis of accounting where revenue is recognized when it becomes measurable and available. Expenditures are generally recognized under the modified accrual basis when the related fund liability is incurred, except for accumulated unpaid vacation and sick leave which has not been accrued, and principal and interest on general long-term debt which is recognized when due~ Investments: Investments are stated at cost. Inventories: Inventories are stated at cost on the first-in, first-out basis. Property, Plant and Equipment: Assets acquired or constructed for general govern- mental services are recorded as expenditures in the fund making the expenditure and capitalized at cost in the general fixed asset group of accounts. Assets considered part of the public domain such as streets and sidewalks have also been capitalized at cost in the general fixed asset group of accounts. No depreciation is taken on general fixed assets. The assets of the Water and Sewer Fund, and Boynton Beach Recreational Facilities Fund (Proprietary Funds) are stated at cost or if donated, fair market value at the date of donation. Expenditures which materially extend the useful life of existing properties are capitalized. Ail costs relating to the construction of facilities are capital- ized, including salaries, employee benefits and bond costs. Depreciation on proprietary fund plant and equipment is computed using the straight- line method over the estimated useful lives of the related assets which are: Equipment Buildings and other improvements Water/sewer system 7-12 years 10-40 years 15-50 years Depreciation charges related to contributions in aid of construction are transferred to retained earnings. Encumbrances: The City records encumbrances as an appropriation of fund balance until expended or accrued as a liability of the fund. -25- NOTES TO FINANCIAL STATE~'~NTS--CONTiNUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1982 NOTE A--SIGNIFICANT ACCOUNTING POLICIES--CONTINUED Revenue Recognition: Ad Valorem Taxes - Ad valorem taxes are assessed as of January 1 and billed the following October. They are due March 31, and become delinquent April 1. These taxes are collected by the Counny and remitted no the City. Revenue is recognized at the time monies are received from the County. At September 30 unpaid delinquent taxes are reflected as a receivable on the balance sheet and are fully reserved. Federal Revenue Sharing Entitlement Payments - Revenue sharing payments are received within 10 days following the end of each entitlement period. Revenue is recognized on the last day of each entitlement period at which time the revenue has become both measurable and available. Measurement Focus: The measurement focus of governmental and certain fiduciary (expendable trust) funds is upon determination of financial position (depicted by a balance sheet) and changes in financial position (depicted by a statement of revenue, expenditures and changes in fund balance). The modified accrual basis of accounning is used to measure financial position and operating results. Under the modified accrual basis, revenue is recorded when measurable and available, in the same sense that it is collectible within the current period or soon enough thereafter, to be used to pay liabilities of the current period. Expenditures are recorded when the relaned liabil{ties are incurred. The measurement focus of proprietary (enterprise) and certain fiduciary (pension trust) funds is upon determination of financial position (depicted by a statement of revenue, expenses and changes in retained earnings/fund balance) and changes in finan- cial position (depicted by a statement of changes in financial position). The accrual basis, under which revenue is recorded when earned and expenses are recorded when the related liabilities are incurred, is used to account for these funds. The accounning principles utilized for these funds are very similar to those used in private industry. Fund Balance Reserves: Fund balances are reserved as follows: General Fund - The general fund balance is reserved for: encumbrances at year end, inventory on hand at year end, and certain specific projects which will be active in the upcoming year. Federal Revenue Sharing Fund - This fund balance is reserved for outstanding encumbrances at year end. Pension Trust Funds - The pension trust fund balances are reserved for actuarial deficiencies, retiremenn benefits and employees' contributions. These reserves signify that a portion of the fund balance of these funds is non to be considered as available for subsequenn expenditure, other than the specific purpose for which the reserve was established. -26- NOTES TO FINANCIAL STATEmeNTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1982 NOTE A--SIGNIFICANT ACCOUNTING POLICIES--CONTINUED Budgets and the Budgeting Process: The General, Special Revenue, Capital Projects and Debt Service Fund budgets are prepared on the modified accrual basis of accounting. The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. Prior to August 1, the City Manager submits to the City council a tentative budget for consideration and approval. The budget is available to the public at this time. 2. Informal budget workshops are held by the City Council to review the pro- posed budget and to obtain public comment. 3. The City advises the County Property Appraiser of the proposed millage rate, the rolled back millage rate, and the day, time and place of the public hearing for budget acceptance. 4. The public hearing is held to obtain final taxpayer input and to adopt the final budget. 5. The budget and related millage rates are legally enacted ~through passage of an ordinance. 6. For budgetary purposes, current year encumbrances are treated as expendi- otures and any unencumbered budgetary appropriations lapse at fiscal year end. 7. Changes or amendments to the total budgeted expenditures of the City or a department must be approved by the City Council, however, changes within a department which do not affect the departmental total expenditures may be approved at the administrative level. 8. Expenditures may not exceed budgetary appropriations for the fund in total, although individual departmental expenditures may exceed departmental budgets. Interfund Transactions: Following is a description of the basic type of interfund transactions made during the year and the related accounting policy: Reimbursements - transactions for services rendered or facilities provided. These transactions are recorded as revenue in the receiving fund and expenditures in the disbursing fund. Residual equity transfers - nonroutine transfers of equity between funds. Equity in Pooled Cash and Investments: Equity in pooled cash and investments consists of government securities held under repurchase agreements. A compensating balance of $100,000 is required under the terms of this agreement. Cash balances and require- ments of all funds are considered in determining the amount co be invested. Interest earned on pooled cash and investments is allocated to funds based on their daily cash balances. -27- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1982 NOTE A--SIGNIFICANT ACCOUNTING POLICIES--CONTINUED At September 30, 1982, the pooled cash and investmenns consisted of the following: Repurchase agreement $ 910,000 Drafts outstanding (114,236) .$ 795,764 The pooled cash and investments are reflected in the financial statements as follows: Equity in pooled cash and investments $ 611,527 Included in proprietary fund restricted assets--Note H 184,237 Memorandum Only Columns: information purposes only. cial statements. $ 795,764 The columns entitled Total (Memorandum Only) are shown for These total columns do not represent consolidated finan- NOTE B--PROPRIETARY FUND TYPES Amortization: Bond discounts and deferred issuance costs are being amortized over the lives of the respective issues. Contributions in Aid of Construction: Contributions in aid of construction have been received as follows: Capital facilities fees Federal Revenue Sharing Federal grants City of Boyncon Beach Property owners and developers Palm Beach County Transferred to retained earnings NET CONTRIBUTIONS IN AID OF CONSTRUCTION $ 2,009,468 5,698 10,644,281 275,369 12,174,118 126,217 25,235,151 1,910,849 S 23,324,302 -28- NOTES TO FINANCIAL STATEb~NTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1982 NOTE B--PROPRIETARY FUND TYPES--CONTINUED Revenue Bond Debt Service Coverage: Bond Resolution 64FF of the City of Boynton Beach requires that the net revenue of the Water and Sewer Fund, as defined in the resolu- tion, be equal to or greater than 1.25 times the maximum annual debt service require- ments of the bonds in any succeeding year. As shown by the following schedule, the City is in compliance with this requirement: Net Revenue (as defined) $ 1,928,916 Maximum Current Required Debt Service Coverage Coverage $ 1,332,661. 1.45 1.25 Reserve for Renewal and Replacement: The renewal and replacement reserve was author- ized by the 1960 bond issue. It is fully funded at this time. Regional Wastewater Plant: The City, along with the City of Delray Beach, is a joint owner of the regional wastewater plant which serves both communities. Administrative and operational control of the plant rests with the South Central Regional Wastewater Treatment and Disposal Board, which is made up of the members of the City Council of the Cities of Boynton Beach and Delray Beach. The accompanying financial statements do not include the operations of the South Central Regional Wastewater Treatment and Disposal Board. The City has recorded its investment in the Regional Wastewater Treatment Plant at cost and is amortizing this investment based upon the estimated useful lives of the buildings, components and equipment acquired, which range from 12 to 40 years. Amor- tization in fiscal 1982 was $252,597 and is included with depreciation expense. At the time the Regional Wastewater Plant became fully functional, the City ceased us- ing its own wastewater plant. As of September 30, 1982, the City has not formalized plans for either sale or alternate uses for these assets. Present construction statistics for the City indicate that it may be necessary to maintain a portion of the plant to be used as a reserve wastewater facility should the Regional Wastewater Treatment Plant reach full capacity. The City h~s included these assets, which have an approximate net book value of $56,000, with property, plant and equipment in the Water and Sewer Fund until a final determination of the assets' use or disposition can be made. NOTE C--PENSION TRUST FUNDS The City has three single-employer pension plans. The firemen and policemen are covered by separate plans and substantially all other full-time City employees are covered by the general retirement plan. Reserves for these pension funds are desig- nated to cover future pension benefits, refund of pension contributions, actuarial deficiencies, and variations in actuarial assumptions. The scnedul below reflects information on the various funds as of the latest actuarial report. The actuarial -29- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1982 NOTE C--PENSION TRUST FUNDS--CONTINUED deficiencies are deferred obligations which are being funded over 30 years through employer and employee contributions and fund investment revenue. Date of actuarial valuation Actuarial present value of vested accumulated plan benefits Actuarial present value of nonvested accumulated plan benefits Plan assets, at cost Plan assets, at market value Actuarial deficiency Interest rate assumption used in actuarial valuation City's contribution to the plan for Retirement Police Firemen Trust Pension Pension Fund Fund Fund 1-1-82 1-1-82 1-1-81 $ 1,951,618 $ 1,429,972 $ , $ 562,767 $ 148,413 $ , $ 2,933,848 $ 1,235,501 $ 1,022,445 $ 2,691,283 $ 1,098,294 $ 942,009 $ 1,454,605 $ 679,836 $ 447,476 7% 7% 7% the year ended September 30, 1982 $ 280,347 $ 45,498 $ 94,856 * The actuarially determined present value of vested and nonvested accumulated plan benefits for ' the Firemen's Pension Fund were not determined at January 1, 1981. The present value of benefits (not actuarially determined) for the Firemen's Pension Fund was $979,163 vested and $2,245,642 nonvested at January 1, 1981. The contribution amounts were determined by the City's actuaries and in compliance with applicable Florida statutes and are within the guidelines established by Accounting Principles Board Opinion No. 8. NOTE D--BUDGET AND ACTUAL CO~.~ARISONS Generally accepted accounting principles (GAAP) require that the Statement of Revenue and Expenditures--Budget and Actual be prepared under the basis of accounting used in preparing the budget. As indicated in Note A, current year encumbrances are treated as expenditures for budgetary purposes. In addition, reserved/designated revenue and expenditures are not comprehended by the General Fund budget. As a result, the -30- NOTES TO FINANCIAL STATEmeNTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1982 NOTE D--BUDGET AND ACTUAL COMPARISONS--CONTINUED General Fund and Federal Revenue Sharing Fund revenue and expenditures reported in the budget and actual statement differ from the amounts reported on the GAAP basis. These differences can be reconciled as follows: Federal Revenue General Sharing Fund Fund Revenue--budgetary basis Reserved/designated revenue Revenue--GAAP basis 10,004,005 $ 76,326 $ 10,080,33~ $ Expenditures--budgetary basis Reserved/designated fund balance expenditures Prior year encumbrances paid in the current year 10,383,190 $ 516,409 297,763 25,090 3,728 Current year encumbrances outstanding at year end Expenditures--GAAP basis ( 16,232) $ 10,689,81! ( 4,436.) $ 515,701 NOTE E--GENERAL LONG-TE~I DEBT ACCOUNT GROUP As of October 1, 1981, the City had $10,000 in outstanding general obligation bonds which were retired in 1982. -31- NOTES TO FINANCIAL STATE~'~NTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1982 NOTE F--REVENUE BONDS The debt service requirements of the City's Water and Sewer Revenue Bonds are as follows and are funded by the excess of user charges over operating expenses and investment income. The bonds bear interest at rates ranging from 3.75% to 7.5% per annum, Fiscal Year Balance Ended at End of September 30 Principal Interest Total Fiscal Year 1983 $ 430,000 $ 902,661 $ 1,332,661 $ 25,580,622 1984 445,000 877,145 1,322,145 24,258,477 1985 470,000 850,412 1,320,412 22,938,065 1986 500,000 822,112 1,322,112 21,615,953 1987 530,000 791,914 1,321,914 20,294,039 1988 555,000 760,067 1,315,067 18,978,9)'2 1989 585,000 726,945 1,311,945 17,667,027 1990 625,000 692,203 1,317,203 16,349,824 1991 655,000 655,185 1,310,185 15,039,639 1992 695,000 615,634 1,310,634 13,729,005 i993 735,000 573,028 1,308,028 12,420,9)'7 1994 780,000 526,950 1,306,950 11,114,0217 1995 830,000 477,897 1,307,897 9,806,130 1996 880,000 425,578 1,305,578 8,500,552 1997 695,000 378,345 1,073,345 7,427,207 1998 710,000 337,205 1,047,205 6,380,002 1999 735,000 295,028 1,030,028 5,349,974 2000 760,000 251,451 1,011,451 4,338,523 2001 785,000 206,523 991,523 3,347,000 2002 815,000 160,020 975,020 2,371,980 2003 845,000 111,780 956,780 1,415,200 2004 975,000 58,360 1,033,360 381,840 2005 370,000 11,840 381,840 $ 15,405,000 $ 11,508,28~3 $ 26,913,283 -32- NOTES TO FINANCIAL STATE~fENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1982 NOTE F--REVENB~ BONDS--CONTINUED The debt service requirements of the City's Recreational Facilities Revenue Bonds are as follows and are funded by the excess of user charges over operating expenses and investment income. The bonds bear interest at rates ranging from 7.50% to 10.875% per annum. Fiscal Year Balance Ended at End of September 30 'Principal Interest Total Fiscal Year 1983 $ $ 271,686 1984 407,525 1985 85,000 404,337 1986 - 90,000 397,663 1987 100,000 390,175 1988 105,000 381,712 1989 115,000 372,219 1990 125,000 361,563 1991 135,000 349,728 1992 150,000 336,468 1993 165,000 321,498 1994 180,000 304,757 1995 200,000 285,937 1996 220,000 264,662 1997 240,000 240,337 1998 265,000 212,878 1999 295,000 182,428 2000 325,000 148,715 2001 360,000 111,469 2002 400,000 70,143 2003 445,000 24,196 271,686 407,525 489,337 487,663 490,175 486 712 487 219 486 563 484.728 486.468 486.498 484.757 485~937 484,662 480,337 477,878 477,428 473,715 471,469 470,143 469,196 $ 9,568,410 9 160,885 8 671,548 8.183,885 7693,710 7~206,998 6 719,779 6.233,216 5~748,488 5,262,020 4,775,522 4,290,765 3,804,828 3,320,166 2,839,829 2,361,951 1,884,523 1,410,808 939,339 469,196 $ 4,000,000 $ 5,840,096 $ 9,840,096 NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1982 NOTE G--PROPERTY, PLANT AND EQUIPMENT The components of properny, plant and equipment at September 30, 1982 are summarized as follows: General Fixed Asset Proprietary Account Funds Group Total Land S 204,833 $ 602,752 $ 807,585 Buildings and improvements 8,796,513 5,738,620 14,535,133 Lines 19,913,490 19,913,490 Equipment 10,204,775 4,425,879 14,630,654 Wells 615,871 615,871 Construction in progress 4,746,900 4,746,900 44,482,382 10,767,~51 55,249,633 Allowances for depreciation 7,943,880 7,943,880 ~ 36,538,502 $ 10,767,251 $ 47,305,753 A summary of changes in general fixed assets follows: Balance Balance October 1, September 30, 1981 Additions Deletions 1982 Land Buildings and improvements Equipment $ 602,752 $ $ S 602,752 4,888,227 850,393 5,738,620 3,893,764 738,399 206,284 A,425,879 S 9,384,743 $ 1,588,792 $ 206,284 $ 10,767,251 -34- NOTES TO FINANCIAL STATEmeNTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1982 NOTE H--RESTRICTED ASSETS The City is required to deposit with their fiscal agent and restrict certain amounts in connection with the ordinances governing the issuance of its revenue bonds. The City.is also required to segregate and restrict certain amounts collected for capital improvements to the water and sewer system, and customer deposits° The amounts restricted at September 30, 1982 are summarized as follows: Water and Sewer Fund Cash Equity in pooled cash and investments Investments Interest receivable Accounts and notes receivable Amount due from current liabilities Boynton Beach Recreational Facilities Fund Cash Equity in pooled cash and investments Investments TOTAL RESTRICTED ASSETS With Fiscal Capital Customer Agent Improvements Deposits Total $ 22,778 $ $ $ 22,778 135,372 7,865 143,237 1,819,914 2,300,000 425,000 4,544,914 36,635 44,029 80,664 600 600 1,879,327 2,480,001 432,865 4,792,193 273,89i 273,891 2,153,218 2,480,001 432,865 5,066,084 ,696 3,918,000 41,000 1,696 41,000 3,918,000 3,919,696 41,000 3,960,696 $ 6,072,914 S 2,480,001 $ 473,865 $ 9,026,780 NOTE I--VACATION A~ SICK LEAVE LIABILITY The City records vacation and sick pay as an expenditure in the year paid. Although vacation accruals generally do not exceed the amount earned in one year, employees may accumulate earned vacation leave up to a maximum of two years. Sick leave may be accumulated until retirement, death, or termination. At that time, an employee receives cash payment for one-half of the accumulated unused sick leave. The maximum estimated unrecorded vacation and sick leave liability at September 30, 1982 is as follows: General Fund Water and Sewer Fund Accumulated Vacation Leave One-half of Accumulated Sick Leave $ 389,907 $ 557,990 61,910 95,150 $ 451,817 $ 653,140 -35- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1982 NOTE J--MUNICIPAL BEACH BONDS During 1982, the residents of the City approved a referendum authorizing the issuance of $1,750,000 of general obligation bonds to finance various renovations at the municipal beach. The initial cost for preliminary work has been paid by the General Fund and recorded as an advance for municipal beach improvements. The advance will be repaid from the proceeds of the bonds. NOTE K--INTERFUND RECEIVABLES AND PAYABLES Interfund receivable and payable balances at September 30, 1982 are summarized as follows: Interfund Interfund Receivable Payable General Special revenue Reserve for Parks and Recreational Facilities Enterprise Water and Sewer Boynton Beach Recreational Facilities Fiduciary Police Pension Boynton Beach Memorial Park Sara Simms Retirement Trust Firemen Pension 310,068 $ 4,102 11,000 310,068 15,102 95,000 165,670 260,670 643 436 32,168 406 436 1,406 27 512 869 35,t65 $ 310,937 $ 310,937 NOTE L--PRIOR PERIOD ADJUSTb~NT Prior to the year ended September 30, 1982, the City recorded water and sewer capital facilities fees as operating revenue in the Water and Sewer Fund. During the year ended September 30, 1982, the City changed the method of accounting and now treats them as contributions in aid of construction, to comply with generally accepted accounting principles. A prior period adjustment of $1,711,496 has been included in the accompanying financial statements to adjust contributions in aid of construction at September 30, 1981 to reflect this change in the method of accounting for the water and sewer capital facilities fees. -36- NOTES TO FINANCIAL STATEI'~NTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1982 NOTE L--PRIOR'PERIOD ADJUSTMENT--CONTINUED The effect on prior periods' net income is as follows: Net income as previously reported Prior period adjustment Net income (loss) as restated Year Ended September 30 1981 1980 $ 808,288 $ 1,178,813 ( 945,441) ( 766,055) $( 137,153) $ 412,758 -37- ,555 CALIFORNIA ST[~EET SAN TELEPHONE= APPENDIX E BROWN, WOOD, IVEY, MITCHELL Ex PETTY O.NE WORLD TRADE CENTER. NEW YORK. N.Y. 10048 ;:'I::'-839-5300 TELEX: 127324 CABLE ADDRESS: 19ROWOODLAW May II , 1983 IOOO ASHLEY DRIVE TANPA, FLORIDA 33603 TELEPHONE, Sl3'222'96OO City Council of the City of Boynton Beach, Florida Ladies and Gentlemen: We have examined certified copies of the legal proceedings including the election proceedings and validation proceedings and other proofs submitted relative to the authorization and issuance of: $1,750,000 CITY OF BOYNTON BEACH, FLORIDA RECREATIONAL AND MUNICIPAL BEACH FACILITIES BONDS DATED February 1, 1983 Denomination $5,000 Numbered 1 to 350, inclusive Maturing on the 1st day of August , subject to prior redemption, in the years and amounts and bearing interest payable on August 1, 1983 and semi-annually thereafter on February 1 and August 1 in each year, as follows: Year of Principal Interest Year of Principal MaturerY Amount Rate Maturit~ Amount 1985 $35,000 1995 $ 80,000 1986 35,000 1996 90,000 1987 40,000 1997 95,000 1988 45,000 1998 105,000 1989 45,000 1999 115,000 1990 50,000 2000 125,000 1991 55,000 2001 140,000 1992 60,000 2002 150,000 1993 65,000 2003 165,000 1994 75,000 2004 180,000 Interest Rate (Plus Accrued Interest from February 1, 1983 on all Bonds) E-1 Both the principal of and the interest on the Bonds are payable at the principal office of , in the City of , Florida, or at the option of the holder or registered owner, at ., in the Borough of Manhattan, City and State of New York, in any coin or currency of the United States of America which, at the respective dates of payment thereof, is legal tender for the payment of public and private debts. We have also examined one of said Bonds as executed (Bond numbered 1). We are of the opinion that such proceedings and proofs show lawful authority for the issuance and sale of said Bonds pursuant to the Constitution and laws of the State of Florida, including Chapter 166, Florida Statutes and the City Charter, that said Bonds constitute valid and binding general obliga- tions of the City of Boynton Beach, Florida (the "City"), for the payment of which and the interest thereon, the full faith., credit and taxing power of said City are pledged, and that all the taxable property within said City is subject to the levy of an ad valorem tax without limitation of rate or amount~ for the payment of said Bonds and the interest thereon. We are further of the opinion that the interest on said Bonds is exempt from all present Federal income taxes and from income taxation under Florida law, except as to taxes imposed by Chapter 220, Florida Statutes, on interest, income or profits on debt obligations owned by corporations as defined in said Chapter 220. Respectfully submitted, E-2 NOTEs NOI'ICE OF SALE $;1,750,000 CITY OF BOYIVlY3N BEACH~ FLORIDA (PALM BEACH RHL~_A_~ONAL i~ B~JNICIPAL BF~ FACILITI~ (G~ OBLIC~ON { ) Sealed bids will be received by the City Council (the "City Council"), in care of the undersigned, at the Boynton Beach City Hall, City Council Cheunk~rs, 120 N.E. Second Avenue, in the City of Boynton Beach, Florida (the "City"> until 12:00 Noon (EDST), MAY4, 1983 at which time and place all bids will be publicly opened and read, for $1,750,000 Recreational and Municipal Beach Facilities Bonds (General Obligation Bonds) of the City of Boynton Beach, Florida, dated February 1, 1983 and maturing annually, August 1, subject to the right of prior redemption, in the following years and in the following amounts: Year of Principal Year of Principal Maturity Amount Maturit~ Amount 1985 S 35,000 1995 $ 80,000 1986 35,000 1996 90,000 1987 40,000 1997 95,000 1988 45,000 1998 105,000 1989 45,000 1999 115,000 1990 50,000 2000 125,000 1991 55,000 2001 140,000 1992 60,000 2002 150,000 1993 65,000 2003 165,000 1994 75,000 2004 180,000 The Bonds will be issued as coupon bonds in the denomination of $5,000 each and will be payable at Florida National Bank of Miami, Miami, Florida. The Bonds may be registrable as to principal only and thereafter reconvertible into coupon bonds. The Bonds will bear interest semi-annually con~uencing August 1, 1983 and each February 1 and August 1 thereafter at the rate or rates specified by the successful bidder. VALIDATION The Bonds were validated by judgment of the Circuit Court of Palm Beach County, Florida, on February 23, 1983, and the time for taking an appeal from such judgment has passed without an appeal having been taken. SECURITY The Bonds herein offered are general obligations of the City. The principal of and interest on the Bonds will be secured by and payable from unlimited ad valorem taxes to be levied and collected on all taxable property within the City. The Full Faith and Credit and Taxing Power of the City has been irrevocably pledged for the payment of the principal of and interest on the Bonds. REIi~I~ON PRDVISIONS The Bonds maturing on or after August 1, 1994 are subject to redemption prior to their respective maturity dates at the option of the City from any moneys available therefor, either in whole or in part in inverse order of their maturities (by lot within a maturity) on any interest payment date at the redemption prices (expressed as percentages of principal amount to be redeemed) plus accrued interest to the redemption date as set forth below: Redempt ion Redemption Period Price August 1, 1993 to February 1, 1995 .................... 103% August 1, 1995 to February 1, 1997 .................... 102 August 1, 1997 to February 1, 1999 .................... 101 August 1, 1999 and thereafter ......................... 100 MUNICIPAL N3NDIN~ The City has received a con~nitment from the Municipal Bond Insurance Association ("MBIA") for a Municipal _Bond Guaranty Insurance Policy unconditionally and irrevocably guaranteeing payment of the principal of and interest on the Bonds. The issuance of such policy will be at the option of bidder offering to purchase the Bonds. Such bidder shall designate in the appropriate place on the bid form whether or not such insurance is desired. Should the successful bidder specify that the City purchase insurance from MBIA, the premium will be paid by the City from bond proceeds. INTEREST RATESANDBASIS OF A~IARD Bidders are requested to name the interest rate or rates, in multiples of 1/8 or 1/20 of 1%. Each bidder must specify in his bid the amount and the maturities of the Bonds of each rate, and all Bonds maturing on the same date must bear interest at the same rate. No bid for less than all of the Bonds offered or for less than ninety-eight percent (98%) of par plus accrued interest to the date of delivery of the Bonds will be entertained. No bond shall bear more than one rate of interest which rate shall be uniform for the life of the Bond,and the interest on any Bond payable on any interest payment date shall be represented by a single coupon, and no zero or blank rate or split rate or supplemental coupons will be permitted. The Bonds will be awarded on the basis of the lowest "true or Canadian interest cost". Such cost will be determined by doubling the semi-annual interest rate (compounded semi-annually) which is necessary to discount the payments of principal and interest from the payment dates to February 1, 1983 and to the price bid, after first deducting from such price bid the cost of the insurance premium of S25,000' to be paid by the City for the Municipal Bond Guaranty Insurance Policy, if such poli~y is requested by the bidder in the appropriate place on the bid form. Although the cost of MBIA insurance will be deducted fr~n the bid price for purposes of computation, it should not be deducted by the bidder from his purchase price as shown on the bid form. The cos5 of the ~TBIA insurance premium shall not be construed to be a part of the allowable 2% discount but shall be added to any discount bid, for compartive purposes only, in calculating the "true or Canadian interest cost". In comparing bids, no consideration will be given to accrued interest from February 1, 1983 to the date of delivery. If two or more equal bids are received, the City Council shall determine which bid shall be accepted. The determination of the City Council shall be final. BID FORM AND GOOD-F~ CH]~CK Each bid must be submitted on a form to be furnished by the undersigned and must be enclosed in a sealed envelope marked "Bid for $1,750,000 Recreational and Municipal Beach Facilities Bonds (General Obligation Bonds)" and must be accompanied by a certified or bank cashier's or treasurer's check for $17,500 upon an incorporated bank or trust company, payable unconditionally to the order of the City Council, Boynton Beach, Florida, on which no interest will be allowed. Award or rejection of bids will be made on the date above stated for the receipt of bids and the checks of unsuccessful bidders will be returned ilzmediately. The check of the successful bidder will be cashed and the proceeds, on which no interest will be allowed, will be held as security for the perfomnance of his bid, but in the event that the successful bidder shall fail to comply with the terms of his bid the proceeds will be retained as and for full liquidated damages. Whenever such terms have been complied with, the proceeds may be applied towards payment of the Bonds, or if it shall be found impossible to issue and deliver the Bonds, the proceeds, without any interest thereon, will be returned° CUSIP~ERS It is anticipated that CUSIP identification numbsrs will be printed on the Bonds, but will not constitute a part of the contract evidenced by the Bonds. Any error or omission with respect thereto will not constitute cause for refusal by the successful bidder to accept delivery of the Bonds in accordance with the terms of the proposal of such bidder. All expenses in relation to the printing of such CUSIP numbers on the Bonds shall be paid for by the City and the CUSIP Service Bureau charge for the assignment of said numbers shall be the responsibility of and shall be paid for by the City. This is am estimated premium. Bidders should contact the Municipal Issuers Service Corporation, General Managers of MBIA (914-946-4242), for a final premium prior to the time and date of sale. 3 The closing papers referred to in the Notice of Sale are to include a certificate, dated as of the day of delivery of said Bonds, stating that there is no litigation pending or, to the knowledge of the signer of such certificate, threatened, affecting the validity of said Bonds or the means provided for their-payment. FORM FOR ELECTION FOR MBIA INSURANCE (please check appropriate box). This bid is ~ is not ~ made for the Bonds carrying the MBIA Municipal Bond Guaranty InsuranCe Policy with the insurance premium to be paid by the City of Boynton Beach, 'Florida, fro~ proceeds of the Bonds. Respectfully submitted, (No addition or alteration, except as provided above, is to be made to this bid.) The True Interest Cost is %. Calculation of such cost is for information purposes only and is not a part of said bid. The above good-faith check has been returned and receipt thereof is duly acknowledged. Bid Form 2 of '2 Pages BID FOR BONI~ May 4~ 1983 City Council of the City of Boynton Beach, Florida 120 N.E. Second Avenue BoyntonBeach, Florida 33435 Gentlemen: We make the following offerfor the $1,750,000 Recreational and Municipal Beach Facilities Bonds (General Obligation Bonds) of the City of BOynton Beach, Florida, described in the attached Notice of Sale, which is hereby made part of this bid, this offer being for all of said Bonds and not for less than all: Year of Principal Interest Prices Maturity Amount Rate or Yields 1985 1986 1987 1988 1989 1990 1991 1992 1993 199-4 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 $ 35,000 35,000 40,000 45,000 45,000 50,000 55,000 60,000 65 000 75,000 80,000 90,000 95,000 105,000 115,000 125,000 140,000 150,000 165,000 180,000 % % we will pay Dollars ($ ), plus accrued interest on the Bonds from February 1, 1983, to the date of their delivery. We enclose herewith a certified or bank cashier's or treasurer's check for $17,500 payable to the order of the City Council, Boynton Beach, Florida, which check is to be applied in accordance with the Notice of Sale. Bid Form 1 of 2 Pages RMi3OI~D DISCLOSURE Section 218.38(b)(1), Florida Statutes, as amended, requires that the City file, within 120 days after delivery of the Bonds, an information statement with the Division of Bond Finance (the "Division") containing the following information: (a) the name and address of the managing underwriter associated with the Bonds; (b) the name and address of any attorney or financial consultant who advised the City with respect to the Bonds; (c) any fee, bonus or gratuity paid, in connection with the issuance of the BondS, by any underwriter or financial consultant to any person not regularly employed or engaged by such underwriter or consultant; and (d) any other fee paid by the City with respect to the Bonds, including any fee paid to attorneys or financial consultants. The successful purchaser is required to provide to the City the information mentioned in (a), (b) and (c) above in a timely fashion such that the City may comply with the above statute. Section 218.38(b)(2), Florida Statutes, as amended, requires that the managing underwriter or financial consultant file with the Division within 90 days after the sale of the Bonds a sworn statement containing the information mentioned in (c) above. The approving opinion of Brown, Wood, Ivey, Mitchell & Petty, New York, New York, will be furnished without cost to the purchasers of the Bonds. There will also be furnished the usual closing papers. Delivery of the Bonds will be made on or about June 1, 1983 in New York, New York, against payment therefor in in~nediately available Federal Reserve Funds. Bid forms and copies of the Official Statement in connection with the Bonds may be obtained by application to the Finance Director, Boynton Beach, Florida, Boynton Beach City Hall, 120n N.E. Second Avenue, Boynton Beach, Florida 33435, or Florida Municipal Securities, 23 West Church Street, P.O. Box 2791, Orlando, Florida 32802 (305-841-7250), Financial Consultant to the City. The right to reject any or all bids or to waive any irregularity or informality in any bids is reserved. Grady W. Swann Finance Director Boynton Beach, Florida 4