The URL can be used to link to this page

90-ZZZZZZ10/10/90 4578M Fourth Draft 2/345/14 RESOLUTION NO. 90-ZZZZZZ A SERIES RESOLUTION PROVIDING FOR THE ISSUANCE OF $33,434,415 AGGREGATE PRINCIPAL AMOUNT OF WATER AND SEWER UTILITY REVENUE BONDS~ SERIES 1998, OF THE CITY OF BOYNTON BEACH, FLORIDA, TO BE ISSUED AS ADDITIONAL BONDS UNDER RESOLUTION NO. 85-Y~/; FIXING AND DETERMINING THE PRINCIPAL AMOUNT, INTEREST RATES, MATURITY DATES, REDEMPTION PROVISIONS AND OTHER DETAILS OF SAID BONDS; MAKING CERTAIN REVISIONS TO RESOLUTION NO. 85-YYY; FINDING NECESSITY FOR A NEGOTIATED SALE OF SUCH BONDS; APPROVING AND AUTHORIZING THE DISTRIBUTION OF A PRELIMINARY AND FINAL O~FICIaL STATEMENT IN CONNECTION WITH SUCH BONDs; AuTHORiZING THE EXECL~ION' AND EXECUTED BY ~ND BETWEE~ THE CItY AND SMITH BARNEY, HARRISUPHAM ~ ~0. iNC0RP~R~TED, ALEX. BROWN & SONS INCORP~RATED~ SMITH, ~ITC~L & ASSOCIATES, . INC.. AND SOUTHEASTERN cAPiTAL GROUP, INd., P~6VID~ F0R THE APPLICATION OF THE PROCEEDS · R~CE!~ FROM THE ~AL~ OF SAID BONDS~ AUTHORIZING THE PURcHAsE OF A BOND iNSURANCE ?0LICY A~D ~MA. KING CERTAIN COVENANTs iN CONNEC~i0N T~EREWiTH; DESIGNATING' THE BOARD REGISTRAR AND ~A~ING AGENT FOR SAIU BONDS; PROVIDING A coVENANT. AS TO COMPLIANCE WITH FEDERAL TAX LAWS, CONTAINING CERTAIN AUTHORIZATIONS AND OTHER PROVISIONS; AND P~0VtDING AN EFFECTIVE DATE. WHEREAS, the City of Boynton Beach, Florida (the "City") is authorized by the Constitution and laws of the State of Florida, including the City's Charter ~Chapter 24398, Laws of Florida, Acts of 1947~ as amended and supplemented) ~nd Chapter 166, Florida Statutes, tO issue revenue bonds of the City payable from Revenues and Impact Fees (as further d~scribed in the 1985 Resolution hereinafter mentioned) for certain purposes; and WHEREAS, pursuant to Resolution No. 85-YYY adopted by the City Council of the City (the "City Council") on November 19, 1985, as amended and supplemented by Resolutions No. 85-ZZZ, No. 85-AAAA and No~ 85-JJJJ (the "1985 Resolution"), the City has heretofore issued $20,237,813.75 aggregate principal amount of its Water and Sewer Utility Revenue Bonds, Series 1985 (the "1985 Bonds"); and WHEREAS, pursuant to the 1985 Resolution the 1985 Bonds are secured by a lien upon and pledge of certain "Revenues" and "Impact Fees" as defined in and to the extent set forth in the 1985 Resolution; and WHEREAS, pursuant to the 1985 Resolution Additional Bonds (ss defined in the 1985 Resolution) may be issued by the City subject to the terms and conditions of the 1985 Resolution, such Additional Bonds to be payable from and secured by alian upon and pledge of the Revenues and Impact Fees that is on a parity with and entitled to the same benefit and security of the 1985 Resolution as the 1985 Bonds; and WHEREAS~ the City desires to issue additional obligations as additional parit~ BOnds under the 1985 Resolution to provide funds to pay the cost of Improvements to the Water and Sewer Utility (as defined in the 1985 ReSolution), to provide for an sdditional deposit to the Reserve Account (as defined in the 1985 Resolution)~ and to pay costs of issuing such Additional Bonds (including the cost of municipal bond insurance thereon); and WHEREAS~ prior to the issuance of~'such Additional Bonds the conditions set forth in Section 208 of the 1985 Resolution shslt be satisfied; and WHEREAS, the City Council has determined that because of the unsettled nature of the municipal bond market and for other reasons the sale of such Additional Bonds through negotiation with the Original Purchaser (hereinsfter defined) is in the best interest of the City; and WHEREAS, the City Council has received from Smith Barney, Harris Upham & Co. Incorporated as representative of itself and Alex. Brown & Sons Incorporated, Smith, Mitchell & Associates, Inc. and Southeastern Capital Group, Inc. (the "Original Purchasers") a proposal in the form of a Bond Purchase Agreement to be dated October 10, 1990 by and between the City and the Original Purchaser relating to the sale of such Additional Bonds, and the City Council has determined that the acceptance of such proposal is in the best interests of the City and will effect the purposes set forth in the 1985 Resolution; and WHEREAS, it is necessary and desirable to approve the form of s Preliminary Official Statement and of a Final Official Statement in connection with the issuance of such Additional Bonds; and WHEREAS, it is necessary and desirable to specify the date, the interest rates, maturity dates, and redemption provisions for such Additional Bonds and to appoint Barnett Banks Trust Company, N.A. as Bond Registrar for such Additional Bonds. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BOYNTON BEACH, FLORIDA: -2- 4578M Section 1. Authority for this Resolution, This Resolution is adopted pursuant to the provisions of the Charter of the City of Boynton Beach, Florida, the Constitution of the State of Florida, including, but not limited to, Article VIII, Section 2 thereof, and other applicable provisions of law, including Chapter 166, Florida Statutes, and the 1985 Resolution. Section 2. Definitions. Terms used herein in capitalized fo~m and not otherwise defined herein sh~ll have the meanings ascribed thereto in the 1985 Resolution. "AMBAC Indemnity" means AMBAC Indemnity Corporation, a WisconSin-domiciled stock insurance company. "1990 Improvements" means those improvements to the Water and Sewer Utility described in the Official Statement attached hereto as Exhibit "D", in the Section thereof entitled "The 1990 Project." "Municipal Bond Insurance bond insurance policy issued by payment when due of the principal 1990 Bonds as provided therein. Policy" means ~he municipal AMBAC Indemnity insuring the of and interest on the Series "Regular Record Da " , te means with respect to the Series 1990 Bonds (hereinafter defined), the fifteenth (15th) day of the month next preceding each Interest Payment Date for the Series 1990 Bonds° Section 3. Aukhorization of Bond~. Additional Bonds under Section 208 of the 1985 Resolution are hereby authorized to be issued under and pursuant to this Resolution and the 1985 Resolution in the aggregate principal amount of $33,434,415.00. The Bonds hereby authorized shall be known as "Water and Sewer Utility Revenue Bonds, Series 1990" (the "Series 1990 Bonds"). The Series 1990 Bonds shall be on a parity with the 1985 Bonds and shall be entitled to the same benefit and security of the 1985 Resolution as the 1985 Bonds. Prior to the issuance of the Series 1990 Bonds the conditions of Section 208 of the 1985 Resolution shall be satisfied. The Series 1990 Bonds are being issued to provide funds to pay the cost of the 1990 Improvements and the costs of ~issuing the Series 1990 Bonds, and to provide for a deposit to the Reserve Account. Section 4. Terms of the Series 1990 Bonds. (a) Form of Bondm. The Series 1990 Bonds shall be substantially in the form of the Bond set forth in the 1985 Resolution, with such changes as may be necessary or appropriate to conform to the provisions of this Resolution as may be approved by the officers of the City executing the Series 1990 Bonds, such execution to be conclusive evidence of such approval. -3- 4578M (b) Amounts. Maturities and Interest Rates. The Series 1990 Bonds shall be issued in part as Current Interest Bonds and in part as Capital Appreciation Bonds as described below. The Series 1990 Bonds that are Current Interest Bonds shall be in the denominations of $5,000 principal amount or any integral multiple thereof, shall be numbered CIR-1 and upward, shall be dated October 1, 1990, and shall bear interest from such dste, payable semi-annually by check on the first day of May and November of each year commencing May 1, 1991, and shall be issued in the aggregate principal amounts, shall bear interest at the rates per annum computed on the basis of a 360 day year consisting of twelve (12) thirty (30) day months, and shall mature on November 1 of the years, as set forth in the following table: $30,870,000 Current Interest Bonds Amount $ 20,000 1992 6.100 20,000 1993 6.250 20,000 1994 6.40D 20,000 1995 6.55D 25,000 1996 6.700 25,000 1997 6.800 25,000 1998 6.900 30,000 1999 6.950 35,000 2000 7.000 35,000 2001 7.050 4,665,000 2007 7.300 8,060,000 2010 7.250 17,890,000 2015 7.400 The Series 1990 Bonds that are Capital Appreciation Bonds shall be issued in amounts which on the date of delivery thereof represent ~5,000 or integral multiples thereof in Accreted Amount at maturity, shall be numbered CAR-1 and upward, shall be dated as of the date of their initial authentication and delivery, shall bear interest from such date, such interest to be compounded semiannually from the date of delivery thereof on each May 1 and November 1, commencing May 1, 1991, so that such Capital Appreciation Bonds shall appreciate to yield approximately the rates per annum set forth below (subject to the specific accretion schedules for each $5,000 maturity amount as set forth in Exhibit -4- 4578M "A" hereto)t and shall mature on November 1 of the years as set forth in the following table: $2,564,415 Capital Appreciation Bonds Original Accreted Principal Amount at Amount Maturity Maturity Approximate $594,732.60 $4,410,000 2016 7.850 550,676.70 4,410,000 2017 7.850 509,846.10 4,410,000 2018 7.850 472,090.50 4,410,000 2019 7.850 437,075.10 4,410,000 2020 7.850 Notwithstanding any provision to the contrary of this Resolution or the 1985 Resolution, the Accreted Amount of Capital Appreciation Bonds shall be considered as principal for purposes of determining the redemption price of such Bonds and the amount of such Bonds held at any particular time as Outstanding by any Owner for any purposes of this Resolution or the 1985 Resolution. For purposes of calculating the Accreted Amount of Capital Appreciation Bonds with respect to matters related to the payment upon redemption of Capital Appreciation Bonds or the'determination of the amount of Bonds Outstanding held by a Owner, if the date of computation of the Accreted Amount shall not be an Interest Payment Date, the Accreted Amount shall be the sum of the Accreted Amount as of the immediately preceding Interest Payment Date (or the date of original issuance if the date of computation is prior to the first Interest Payment Date succeeding the date of original issuance) plus that portion of the difference between the Accreted Amount as of the immediately preceding Interest Payment Date (or the date of original issuance if the date of computation is prior to the first Interest Payment Date succeeding the date of original issuance) and the Accreted Amount as of the immediately succeeding Interest Payment Date, calculated by multiplying such difference by a fraction, the numerator of which is the number of days from and including the immediately preceding Interest Payment Date (or date of original issuance, as the case may be) to but not including the date of calculation, and the denominator of which is the number of days from and including such preceding I~terest Payment Date (or date of original Issuance, as the case may be) to, but not including, the next succeeding Interest Payment Date. (c) Optional Redemption. The Series 1990 Bonds that are Current Interest Bonds maturing prior to November 1, 2001 are not subject to redemption prior to maturity. The Series 1990 Bonds that are Current Interest Bonds maturing on and after November 1, 2001, are subject to redemption at the option of the City, on or after November 1, 2000, in whole at any time, or in part on any Interest Payment Date, at the redemption prices (expressed as percentages of the principal amount of the Series 1990 Bonds to be -5- 4578M redeemed) as set forth below, plus accrued and unpaid interest thereon to the date of redemption. R2~ 2MP I~ 2~ -- REDEMPTION PRICES November 1, 2000 through October 31, 2001 102% November 1, 2001 through October 31, 2002 101 November 1, 2002 and thereafter 100 The Series 1990 Bonds that are Capital Appreciation Bonds are subject to redemption at the option of the City, on or after November 1, 2005, i~ whole at any time or in part on any Interest Payment Date, at the redemption prices (expressed as percentage of the Accreted Amount as of the date of redemption) as set forth below: REDE ~TI .N D~TE._ REDEMPTION PRICES November 1, 2005 through October 31, 2006 105% November 1, 2006 through October 31, 2007 104 November 1, 2007 through October 31, 2008 103 November 1, 2008 through October 31, 2009 102 November 1, 2009 through October 31, 2010 101 November 1, 2010 and thereafter 100 Subject to the provisions of Section 5(a) hereof no redemption of less than all of the Bonds outstanding under the 1985 Resolution (including the Series 1990 Bonds) is permitted, except under the circumstances described in Section 301 of the 1985 Resolution. (d) Mandatory Amortization Reauirements of Series 1990 Current Interest Term Bonds. The Series 1990 Current Interest Term Bonds maturing in the years 2007 (the "2007 Term Bonds"), 2010 (the "2010 Term Bonds") and 2015 (the "2015 Term Bonds") shall have the following MandaTory Amortization Requirements and shall be subject to mandatory redemption in part by the City at a redemption price equal to the unpaid principal amount thereof plus accrued intersst thereon to the redemption date, on November 1 in such years and in the principal amounts as set forth below: 2007 TERM BONDS Yea~ Mandatory Amortization ReGuirement 2002 $ 35,000 2003 40,000 2004 40,000 2005 45~000 2006 2,175,000 2007~ 2,330,000 -6- 4578M 2010 TERM BONDS Year Mandatory Amortization Reauirement 2008 $2,500,000 2009 2,685,000 2010 2,875,000 Year 2015 TERM BONDS Mandatory Amortization Reauirement 2011 $3,085,000 2012 3,315,000 2013 3,560,000 2014 3,825,000 2015 4,105,000 If prior to any November 1 the City shall purchase for cancellation or redeem 2007 Term Bonds, 2010 Term Bonds, or 2015 Term Bonds in excess of the aggregate Mandatory Amortization Requirement for such 2007 Term Bonds, 2010 Term Bonds, or 2015 Term Bonds, respectively, to but not including such November 1, such excess of 2007 Term Bonds, 2010 Term Bonds, or 2015 Term Bonds, respectively, so purchased or redeemed and not previously applied as a credit pursuant to this Section 4 shall be credited over such of the remaining mandatory redemption dates for such 2007 Term Bonds, 2010 Term Bonds, or 2015 Term Bonds, respectively, as the City shall determine, and shall reduce the amount of Term Bonds otherwise subject to ~edemption and due, respectively, on such date(s). Provided, however, that no such excess shall be c~edited to the amount of 2007 Term Bonds, 2010 Term Bonds, or 2015 Term Bonds subject to mandatory redemption on a particular No~ember I after the selection of 20~7 Term Bonds, 2010 Term Bonds, or 2015 Term Bonds, respectively, to be redeemed on such date has been made. Section 5. Special Provisions Relative to Series 1990 Bonds. (a) Notice of Redemotion. With respect to the Series 1990 Bonds, the following requirements relating to redemption notices shall apply in addition to the requirements set forth in Article III of the 1985 Resolution: Notice of redemption of Series 1990 Bonds shall be given by first class mail, postage prepaid, not less than thirty (30) nor more than sixty (60) days prior to the date fixed for redemption to the Owners of the Series 1990 Bonds designated for redemption -7- 4578M at their addresses appearing on the registration books for the Series 1990 Bonds on the 5th Business Day prior to the date of such mailing. Any notice mailed as provided above shall be effective, whether or not received by the Owner, and the failure to properly mail any such notice to any Owner shall not affect the validity of the proceedings for redemption of any Series 1990 Bond as to which notice was properly given. In addition, further notice of redemption shall be given as provided below, but a failure %o g~ve such further notice of redemption shall not affect the validity of redemption of any Series 1990 Bond if a notice is mailed to the Owner as provided above. Such further notice of redemption shall be given by certified mail, return receipt requested, at least thirty (30) and not more than sixty (60) days prior to the date fixed for redemption to (i) all registere~ securities depositories that are registered Owners of Series 1990 Bonds (such depositories now being Depository Trust Company of New York, New York, Midwest Securities Trust Company of Chicago, Illinois, Pacific Securities Depository Trust Company of San Francisco, California, and Philadelphis Depository Trust Company of Philadelphia, Pennsylvania), (ii) at least two national information services that disseminate notices of redemption of obligations such as the Series 1990 Bonds (such as Kenney Information Systems Notification Service, Financial Information, Inc.'s Daily Called Bond Serice, Interactive Data Corporation's Bond Service, Moody's Municipal and Government News Report, and Standard and Poor's Called Bond Record), and (iii) Owners of $1,000,000 or more in aggregate principal amount of Series 1990 Bonds. Notice of redemption to securities depositories shall be given in sufficient time so that such notice is received at least two (2) days before the date of mailing to the Owners as provided above. The notice described in (i) and (iii) sbove need not be given for so long as Cede & Co. is the Owner of all Series 1990 Bonds. A second notice of redemption shall be given, within sixty (60) days after the redemption date, by registered mail to Owners of redeemed Series 1990 Bonds which have not been presented for payment within thirty (30) days after the redemption date. Each notice of redemption shall state, in addition to the information required by the 1985 Resolution, the name of the Series 1990 Bonds, the CUSIP numbers, certificate numbers, amounts called of each certificate (for partial redemptions), the publication date, the date of issue, the interest rate, the maturity date, the redemption date and price, the place or place of redemption, and the name and address of a contact person together with telephone number. (b) Notice of Refundinq. If any of the Series 1990 Bonds are to be redeemed pursuant to an advance refunding, notice of such advance refunding and pending redemption shall be given in the -8- 4578M manner provided in Section 1101 of the 1985 Resolution and in addition the notice shall be given in the same manner and to the same persons entitled to receive notice of redemption as provided above, all within sixty (60) days after the date of such advance refunding. (c) Payment of Series 1990 Bonds. Upon the written request of an Owner of at least $1,000,000 in principal amount of Series 1990 Bonds~ received by the Issuer at least fifteen (15) Business Days prior to the date on which any payment of principal, premium, if any, or interest on the Series 1990 Bonds shall be due, such payment shall be paid by wire transfer in immediately available funds to an account designated by such Owner. Each check or other transfer of funds issued or made for the purpcse of payment of principal, premiums if any, and/or interest on Series 1990 Bonds shall bear a CUSIP number identifying, by issue and maturity, the Series 1990 Bonds to which such payment relates. (d) Non-Presentment of Series 1990 Bonds. With respect to the Series 1990 Bonds, Section 515 of the 1985 Resolution shall be supplemented by the addition of the following covenant of the Issuer: Notwithstanding the preceding sentence, any moneys so set aside or deposited by the Director of Finance and which shall remain unclaimed by the Owners of Series 1990 Bonds shall not be paid to the City or any officer, board or body as provided above, until at least one (1) year after the date of original scheduled maturity of the Series 1990 Bonds for which such money has been set aside or deposited. (e) Financial ReDortina, Notice of Default and Supplemental NOtice. For purposes of this Section 5(e), and this Section 5(e) only, the term "Owner" shall include any person or entity that claims in writing delivered to the City to be the Owner of a Series 1990 Bond (or a beneficial owner of a Series 1990 Bond, in the event that all or a part of the Series 1990 Bonds are registered in the name of a depository institution). The annual audit of the books and accounts pertaining to the Water and Sewer Utility, as further described in Section 710 of the 1985 Resolution~ shall be mailed to any Owner of s Series 1990 Bond without charge upon written request. In addition, the City will make available to any Owner of a Series 1990 Bond, without charge upon written request, information concerning the outstanding balance of Series 1990 Bonds by maturity, and a history of the redemption of any Series 1990 Bonds, including the respective redemption date, amount, source of funds and allocation of the Series 1990 Bonds redeemed among all Series 1990 Bonds. In the event the City or any Paying Agent has notice that a Event of Default has occurred or that an event has occurred which, with the passage of time or the giving of notice, or both, would constitute an Event of Default, then the City or Paying Agent, as the case may be, will, within thirty (30) days, give written notice thereof by first class mail to the Owners of the Series 1990 Bonds then Outstanding. -9- 4578M Any Owner of at least $1,000,000 in aggregate principal amount of Series 1990 Bonds may request the City to send an additional copy of any notice required to be sent hereunder or under the 1985 Resolution to Owners, {o a second address simultaneously with and in addition to the regular mailing of such notices to Owners at their addresses on the registration books for the Series 1990 Bonds. Section 6- Chanaes to 1985 Resolution. (a) Partial Redemptions. The second paragraph of Section 301 of the 1985 Resolution contains limitations upon the redemption of less than all of the Bonds issued under the provisions of such Resolution and then Outstanding. At such time as all of the 1985 Bonds shall have been paid or deemed paid pursuant to the 1985 Resolution, then without further action by the City, the second paragraph of Section 301 of the 1985 Resolution shall be deemed to have been deleted from such Resolution and shall be of no further force and effect. The Owners of the Series 1990 Bonds and of any and all other Additional Bonds shall, by their acceptance thereof, be deemed to have accepted and consented to the provisions of this Section 6(a). (b) Bond ReGistrar. The 1985 Resolution contemplates that there shall be only one Bond Registrar for all Bonds Outstanding thereunder. At any time after all of the 1985 Bonds shall have been paid or deemed paid pursuant to the 1985 Resolution, the 1985 Resolution may be amended to the extent necessary to allow for s Bond Registrar for each Series of Bonds, which Bond Registrar may, but need not be the same entity. The Owners of the Series 1990 Bonds and of any and all other Additional Bonds shall, by their acceptance thereof, be deemed to have consented to the provisions of this Section 6(b) and any amendments to the 1985 Resolution pursuant hereto. (c) Reserve Account Reauirement. At such time as all of the 1985 Bonds s~all have been paid or deemed paid pursuant to the 1985 Resolution, then without further action by the City, the first paragraph of the definition of the term "Reserve Account Requirement" shall be amended in its entirety to provide as follows: "Reserve Account Requirement" means, as of any date of calculation, an amount of money, securities or Reserve Account Insurance Policy not less than the lesser of (i) the maximum Principal and Interest Requirements for the then current or any succeeding Bond Year, (ii) 125% of the average annual Principal and Interest Requirements for the Bonds, calculated on a Bond Year basis for each Series of Bonds as of the date of issuance of such Series of Bonds, or (iii) the sum of 10% of the proceeds of each Series of the Bonds. The Reserve Account Requirement for Bonds constituting 4578M Balloon Indebtedness and for Bonds constituting Variable Rate Indebtedness shall be calculated as set forth below. The Owners of the Series 1990 Bonds and of any and all other Additional Bonds shall, by their acceptance thereof, be deemed to have accepted and consented to the provisions of this Section 6(c). (d) R z . _.'n . There is hereby added to Section 209 of the 1985 Resolution an additional prerequisite to the issuance of Refunding Bonds thereunder. In addition to items (a) through (e) required to be filed with the City Clerk prior to the delivery of Refunding Bonds under Section 209 of the 1985 Resolution there shall also be filed with the City Clerk, prior tO or simultaneously with the delivery of such Refunding Bonds, the following: (f) A certificate, signed by the Director of Finance to the effect that either (i) the amount of Net Revenues for any four consecutive quarters in the preceding six quarters (calcutsted on a Fiscal Year basis) adjusted in the manner provided in Section 208(d)(i)(1) shall not be less than 115% of the maximum amount of Principal and Interest Requirements for any Bond Year thereafter, including the Refunding Bonds, but not including any Bonds that shall no longer be Outstanding as a result of the application of proceeds of the Refunding Bonds, or (ii) the Principal and Interest Requirements on the Outstanding Bonds for each Bond Year following the issuance of such Refunding Bonds shall be less than or equal to what such Principal and Interest Requirements would have been for each such Bond Year for the Bonds Outstanding prior to the issuance of such Refunding Bonds. (e) Balloon Indebtedness and Variable Rate Indebtednesz. The definition of "Principal and Interest Requirements" as set forth in the 1985 Resolution contemplates that the computations of interest rate and assumptions as to principal retirement with respect to Balloon Indebtedness and Variable Rate Indebtedness shall be established by Series Resolution. In connection with the issuance of the Municipal Bond Insurance Policy, AMBAC Indemnity has requested that the City establish a methodology for the computation of such interest rate and assumptions as to principal retirement with respect to Balloon Indebtedness and Variable Rate Indebtedness. Therefore, for purposes of the definition of "Principal and Interest Requirements" for Balloon Indebtedness and -11- 4578M Variable Rate Indebtedness issued under the provisions of the 1985 Resolution the following shall apply: Original statement Balloon Indebtedness - the Principal and Interest Requirements on Balloon Indebtedness shall be calculated as of any calculation date as including the amount of principal and interest which would be payable in a given period if such Balloon Indebtedness were amortized (i) from the date of such calculation over a period equal to 20 years, if such indebtedness matures 20 years or more from the date of such calculation or, (ii) if the period from the date of such calculation to the final maturity of such Balloon Indebtedness is less than 20 years, then the actual number of years to maturity shall be used, on a level annual debt service basis at an interest rate, if such Balloon Indebtedness is not Variable Rate Indebtedness, equal to the actual net interest cost on such Balloon Indebtedness, calculated without regard to this provision, and if such Balloon Indebtedness is Variable RaGe Indebtedness, bearing a net interest cost calculated in accordance with the methodology established for Variable Rate Indebtedness. Variable Rate Indebtedness the Principal and Interest Requirements on Variable Rate Indebtedness shall be calculated by assuming the interest rate thereon for any future period for which the actual interest rate cannot yet be determined to be an interest rate per annum equal to the higher of (i) the actual net interest cost rate born by such indebtedness at the time of original !ssuance, (ii) the highest average variable rate for any seven (7) consecutive days over the preceding twelve months or (iii) 9.2 percent per annum. Section 7, Approval of Sale of the Series 1990 Bonds. The City herebydetermines' that a negotiated sala of the Series 1990 Bonds is in the best interest of the City and the citizens and inhabitants of the City by reason of the volatility of the market for tax exempt bonds. The City hereby approves the sale of the Series 1990 Bonds to the Original Purchasers for a price of $32,456,202.47, plus accrued interest on the Current Interest Bonds from October 1, 1990 to the date of delivery, with the date of delivery to follow in the manner and at the time and subject to the conditions set forth in the Bond Purchase Agreement. The Purchasers have filed with the City the disclosure required by Section 218.385(4), Florida Statutes, and -12- 4578M the competitive bidding for the Series 1990 Bonds is hereby waived pursuant to the authority of Section 218.385(1), Florida Statutes. Attached hereto as Exhibit "B" is a form of Bond Purchase Agreement (the "Bond Purchase Agreement"). The City approves the Bond Purchase Agreemen~ and the Mayor, or in his absence or inability to act, the Vice-Mayor, is hereby authorized and directed for and in the name of the City to execute, and the City Clerk or any deputy thereof is authorized to attest to and affix the seal of the City to and deliver the Bond Purchase Agreement to the Original Purchaser. Section 8. Execution and Delivery of the Series 1990 Bonds. The Mayor, or in his absence or inability to act, the Vice-Mayor, and the City Clerk or any deputy thereof are hereby authorized and directed on behalf of the City to execute the Series 1990 Bonds as provided in the 1985 Resolution and such officials are hereby authorized and directed upon the execution of the Series t990 Bonds in the form and manner set forth herein and in the 1985 Resolution to deliver the Series 1990 Bonds in the amount authorized to be issued hereunder to the Bond Registrar for authentication (upon the satisfaction of the conditions of Section 208 of the 1985 Resolution) and delivery by the City Manager to or upon the order of the Original Purchasers upon payment of the purchase price set forth herein. Section 9. ADDlication of Series 1990 Bond Proceeds.. Proceeds from the sale of the Series 1990 Bonds shall be paid to the City, except in the case of the cost of the bond insurance which shall be paid by the Original Purchasers to AMBAC Indemnity on behalf of the City, to be applied as follows: (a) Deposit to the Reserve Account (b) Deposit to the Bond Service Account (c) Deposit to Construction Fund (d) Cost of Bond Insurance 2,451,554.46 $ 144,766.95 $29,721,390.01 Section 10. Bond ReGistrar. The City hereby appoints Barnett Banks Trust Company, N.A. (the "Bank") as Bond Registrar and Paying Agent with respect to the Series 1990 Bonds. For purposes of this Resolution and the Series 1990 Bonds~ the initial principal corporate trust office of the Bank shall be: Barnett Banks Trust Company, N.A. 9000 Southside Boulevard Building 100 Jacksonville, Florida 32256 The Mayor, or in his absence or inability to act, the Vice-Mayor, is hereby authorized and directed for and in the name of the City, and the City Clerk is authorized to attest and apply the seal of -13- 4578M the City to an agreement with the Bank providing for the appointment of and acceptance by the Bank of the position of Bond Registrar and Paying Agent. Section 11. Official Statement. The City hereby approves the form and content of, and -ratifies the use by the Original Purchasers in marketing the Series 1990 Bonds, of the Preliminary Official Statement dated October 3, 1990 relating to the Series 1990 Bonds attached hereto as Exhibit "C." The City hereby approves the form and content of the final Official Statement dated October 10, 1990 attached hereto as Exhibit "D." The Mayor, or in his absence or inability to ach, the Vice-Mayor, and the City Manager or, in his absence or inability to act, the Assistant City Manager, are hereby authorized and directed to execute the Official Statement, as hereby approved. Section 12. Authorization for Bond Insurance. The Mayor, the Finance Director and the City Manager, or any of them, are authorized to arrange for municipal bond insurance on the Series 1990 Bonds to be provided by AMBAC Indemnity, to pay the premium with respect thereto, and to take all actions and execute such documents as may be required in connection therewith. Section 13. Insurance Provisions. (a) Consent of AMBAC Indemnity. Any provision of this Resolution expressly recognizing or granting rights in or to AMBAC Indemnity may not be amended in any manner which affects the rights of AMBAC Indemnity hereunder without the prior written consent of AMBAC Indemnity. (b) Consent of AMBAC Indemnity in Addition to Owner Consent. Unless otherwise provided in this Section, AMBAC Indemnity's consent shall be required in addition to Owner consent, when required, for the following purposes: (i) execution and delivery of any resolution supplementary or amendatory to this Resolution or the 1985 Resolution and (ii) initiation or approval of any action not described in (i) above which requires Owner consent. (c) Consent of AMBAC Indemnity Upon Default. Anything in this Resolution or the 1985 Resolution to the contrary notwithstanding, upon the occurrence and continuance of an "event of default" as defined in the 1985 Resolution, AMBAC Indemnity shall be entitled to control and direct the enforcement of all rights and remedies granted to 'the Owners of the Series 1990 Bonds under this Resolution or the 1985 Resglution, including, without limitation, acceleration of the principal of the Series 1990 Bonds as described in the 1985 Resolution and the right to annul any declaration of acceleration, and the right to waive any event of default. -14- 4578M (d) Notices to be Given to AMBAC Indemnity. While the Municipal Bond Insurance Policy is in effect, the Issuer shall furnish to AMBAC Indemnity: (a) as soon as practicable after the filing thereof, copy of any financial statement of the Issuer and a copy of any audit and annual report of the Issuer; (b) a copy of any notice to be given to the registered owners of the Series 1990 Bonds, including, without limitation, notice of any redemption of or defeasance of Series 1990 Bonds, and any certificate rendered pursuant to this Resolution or the 1985 Resolution relating to the security for the Series 1990 Bonds; and (c) such additional information as it may reasonably request. The Issuer will permit AMBAC Indemnity to discuss the affairs, finances and accounts of the Issuer or any information AMBAC Indemnity may reasonably request regarding the security for the Series 1990 Bonds with appropriate officers of the Issuer. The Issuer will permit AMBAC Indemnity to have access to the Project and to have access to and to make copies of all books and records relating to the Series 1990 Bonds at any reasonable time. AMBAC Indemnity shall have the right to direct an accounting at the Issuer's expense, and the Issuer's failure to comply with such direction within thirty (30) days after receipt of written notice of the direction from A!MBAC Indemnity shall be deemed a default hereunder; provided, however, that if compliance cannot occur within such period, then such period will be extended so long as compliance is begun within such period and diligently pursued, but only if such extension would not materially adversely affect the interests of any Owner of the Series 1990 Bonds. Notwithstanding any other provision of this Resolution or the 1985 Resolution, the Issuer shall immediately notify AMBAC Indemnity if at any time there are insufficient moneys to make any payments of principal and/or interest on the Series 1990 Bonds as required, and immediately upon the occurrence of any event of default hereunder or under the 1985 Resolution. (e) Defeasance of Series 1990 Bonds. In the event that the principal and/or interest due on the Series 1990 Bonds shall be paid by AMBAC Indemnity pursuant to the Municipal Bond Insurance Policy, the Series 1990 Bonds shall remain Outstanding for all purposes, shall not be defeased or otherwise satisfied and shall not be considered paid by the Issuer, and the assignment and pledge o~ the amounts pledged to repayment of the Series 1990 Bonds and all covenants, agreements and other obligations of the -15- 4578M Issuer to the Owners shall continue to exist and shall run to the benefit of AMBAC Indemnity, and AMBAC Indemnity shall be subrogated to the rights of such Owners. (f) Payment Procedure Pursuant to Municipal Bond Insurance Policy. AS long as the Municipal Bond Insurance Policy shall be in full force and effect, the Issuer and any Paying Agent agree to comply with the following provisions: (a) At least five (5) days prior to all Interest Payment Dates the Issuer or Paying Agent will determine whether there will be sufficient funds in the funds and accounts established pursuant to the 1985 Resolution to pay the principal of or interest on the Series 1990 Bonds on suCh Interest Payment Date. If the Issuer or Paying Agent determines that there will be insufficient funds in such funds or accounts, the Issuer or Paying Agent shall so notify AMBAC Indemnity. Such notice shall specify the amount of the anticipated deficiency, the Series t990 Bonds to which such deficiency is applicable and whether such Series 1990 Bonds will be deficient as to principal or interest, or both. If the Issuer or Paying Agent has not so notified AMBAC Indemnity five (5) days prior to an Interest Payment Date, AMBAC Indemnity will make payments of principal or interest due on the Series 1990 Bonds on or before the fifth (5th) day next following the date on which AMBAC Indemnity shall have received notice of nonpayment from the Issuer or Paying Agent. (b) The Issuer or Paying Agent shall, after giving notice to AMBAC Indemnity as provided in (a) above, make available to AMBAC Indemnity and, at AMBAC Indemnity's direction, to the United States Trust Company of New York, es insurance trustee for AMBAC Indemnity, or any successor insurance trustee (the "Insurance Trustee"), the registration books of the Issuer maintained by the Registrar or Paying Agent and all records relating to the funds and accounts maintained under this Resolution and the 1985 Resolution. (c) The Issuer or Paying Agent shall provide AMBAC Indemnity and the Insurance Trustee with a list of Owners of Series 1990 Bonds entitled to receive principal or interest payments from AMBAC Indemnity under the terms of the Municipal Bond Insurance Policy, and shall make arrangements with the Insurance Trustee (i) to mail checks or drafts to the Owners of Series 1990 Bonds entitled to receive full or partial interest payments from AMBAC Indemnity and (ii) to pay principal upon Series 1990 Bands surrendered to the Insurance Trustee by the Owners of Series 1990 Bonds entitled to receive full or partial principal payments from AMBAC Indemnity. (d) The Issuer or Paying Agent shall at the time it provides notice to AMBAC Indemnity pursuant to (a) above, notify -16- 4578M Owners of Series 1990 Bonds entitled to receive the payment of principal or interest thereon from AMBAC Indemnity (i) as to the fact of such entitlement, (ii) that AMBAC Indemnity will remit to them all or a part of the interest payments next coming due upon proof of Owner entitlement to interest payments and delivery to the Insurance Trustee, in form ~satisfactory to the Insurance Trustee, of an appropriate assignment of the Owner's right to payment, (iii) that should they be entitled to receive full payment of principal from AMBAC's Indemnity, they must surrender their Series 1990 Bonds (along with an appropriate instrument of assignment in form satisfactory to the Insurance Trustee to permit ownership of such Series 1990 Bonds to be registered in the name of AMBAC Indemnity) for payment to the Insurance Trustee, and not the Issuer or Paying Agent, and (iv) that should they be entitled to receive partial payment of principal from AMBAC Indemnity, they must surrender their Series 1990 Bonds for payment thereon first to the Paying Agent who shall note on such Series 1990 Bonds the portion of the principal paid by the Paying Agent and then, along with an appropriate instrument of assignment in form satisfactory to the Insurance Trustee, to the Insurance Trustee, which will then pay the unpaid portion of principal. (e) In the event that the Issuer or Paying Agent has notice that any payment of principal of or interest on a Series 1990 Bond which has become Due for Payment (as defined in the Municipal Bond Insurance Policy) and which is made to an Owner by or on behal~ of the Issuer has been deemed a preferential transfer and theretofore recovered from its Owner pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in accordance with the final, nonappealable order of a court having competent jurisdiction, the Issuer or Paying Agent shall, at the time AMBAC Indemnity is notified pursuant to (a) above, notify all Owners that in the event that any Owner's payment is so recovered, such Owner will be entitled to payment from AMBAC Indemnity to the extent of such recovery if sufficient funds are not otherwise available, and the Issuer or Paying Agent shall furnish to AMBAC Indemnity its records evidencing the payments of principal of and interest on the Series 1990 Bonds which have been ma~e by the Issuer or Paying Agent and subsequently recovered from Owners and the dahes on which such payments were made. (f) In addition to those rights granted AMBAC Indemnity under this Resolution, AMBAC Indemnity shall, to the extent it makes payment of principal of or interest on Series 1990 Bonds, become subrogated to the rights of the recipients of such payments in accordance with the terms of the Municipal Bond Insurance Policy, and to evidence such subrogation (i) in the case of subrogation as to claims for past due interest, the Registrar or Paying Agent shall note AMBAC Indemnity's rights as subrogee on the registration books of the Issuer maintained by the Registrar or Paying Agent upon receipt from AMBAC Indemnity of proof of the -17- 4578M investments were invested at a rate equal to the yield on the Series 1990 Bonds, plus any income attributable to such excess (the "Rebate Amount"); (2) to maintain and retain all records pertaining to and to be responsible for makin9 or causing to be made all determinations and calculations of the Rebate Amount and required payments of the Rebate Amount as shall be necessary to comply with the Code; (3) to refrain from using proceeds from the Series 1990 Bonds in s manner that would cause the Bonds or any of them, to be classified as private activity bonds under Section 141(a) of the Code; and (4) to take or refrain from taking any action that would cause the Series 1990 Bonds, or any of them, to become arbitrage bonds under Section 103(b) and Section 148 of the Code. The City understands that the foregoing covenants impose continuing obligations on the City to comply with the requirements of Section 103 and Part IV of Subchapter B of Chapter 1 of the Code so long as such requirements are applicable. Unless otherwise specified in a Supplemental Resolution or in the Certificate as to Arbitrage and Other Tax Matters delivered in connection with the issuance of the Series 1990 Bonds, the City shall designate a certified public accountant, Bond Counsel, or other professional consultant having the skill and expertise necessary (the "Rebate Analyst") to make any and all calculations required pursuant to this Section regarding the Rebate Amount. Such calculation shall be made in the manner and at such times as specified in the Code. The City shall engage and shall be responsible for paying the fees and expenses of the Rebate Analyst. Section 16. Authorizations. The Mayor, the City Clerk, any deputy City Clerk, the Finance Director, the Assistant Finance Director, the City Manager and the Assistant City Manager are hereby jointly and severally authorized to do all acts and things required of them by this Resolution, the 1985 Resolution or the Bond Purchase Agreement, or desirable or consistent with the requirements hereof or thereof, for the full, punctual and complete performance of all terms, covenants and agreements contained in the Series 1990 Bonds, the 1985 Resolution, this ResQlution, and the Bond Purchase Agreement, and to make any elections necessary or desirable in connection with the arbitrage provisions of Section 148 of the Code. -19- 4578M Section 22. Effective Date. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED THIS 10TH DAY OF OCTOBER, 1990. (SEAL) ~/ ATT~ ST~ · cit~erk / / ~ayor/3 Commiss' 0 e ~ Co~issioner -21- 4578M LAW OFFICES Mo~r~.~, F~,rro.&.,~, Ka:rz, FrrzG~..~.~'r.D & S~..~..m~_~, P.A. October 11, 1990 Suzanne Kruse City Clerk City of Boynton Beach 100 East Boynton Beach Boulevard Boynton Beach, Florida 33425 CERTIFIED MAIL P 251 276 844 RETURN RECEIPT REQUESTED RE: City of Boynton Beach, Florida Water and Sewer Utility Revenue Bonds, Dear Suzanne: Series 1990 Enclosed is an original, fully executed Resolution No. 90-ZZZZZZ together with all exhibits. The resolution should include all exhibits when filed in the public records. MER/ash Very truly yours, Mark E. Raymond 9447Z City of Boynton ~each, Florida t~ater and Sewer Utility ~e~enub Bohds, Series 1990 CIB - CAB Structure, 10/10/90 Pricing Accreted Value Table Yield 7.850% 7.850% 7.850% 7.850% 7.850% Date 11/01/2016 11/01/2017 11/01/2018 11/01/2019 11/01/2020 10/24/90 674.30 624.35 570.05 535.25 495,55 11/01/90 675.30 $25.25 578.~5 536.05 496.30 05/01/~1 701.85 649.80 601.65 557.05 515.80 11/01/91 729,40 675.30 625.25 578.95 536.05 05/01/92 758.00 701.85 649.80 601.65 557.05 11/01/92 7~7.75 729.40 675.30 625.25 578.95 05/01/93 818.70 758.00 701.85 649.80 601.65 11/01/93 850.80 787.75 ~29.40 6;~5.30 625.25 05/01-~24 884.20 818.70 758.00 701.85 11/01/94 918.90 850.00 787.75 ~.40 05/01/95 955.00 884.20 818.70 7'58.00 701.85 11/01/95 992.45 918.90 850.80 787.75 729.40 03/01/96 1,031.45 955.00 884.20 818.70 758.00 11/01/96 1,071.90 992.45 918.90 8.50.00 787.75 05701/97 1.114.00 1,031.45 935.00 884.20 818.70 tl/01/97 1,157.70 1,071.90 992.45 918.90 830~80 03/01/¢8 1,203.15 1,t~4.00 1,031,45 955.00 8~..20 11701/9~ 1,250.35 1,157.70 1,071.90 992.45 918;90 05/0~/99 1,299.45 1,205.~5 1,114.00 1,031.~5 11~01799 1,350.45 1,250.35 1,157.70 1,071.90 05/01/2[~00 1,403.45 1,299.45 11/01/2000 1,458.55 1,350.45 1,250,35 1,157.~0 1,071;90 11/01/2901 1,575,30 1,458.55 1,350.45 1,250.33 1,157~70 05/01/2002 t,63~.15 1,515.88 1,403,45 1,~.45 1,203~15 11/01/200~ 1,Z0t,40 1,575.30 1,458.55 1 350.45 1,250~35 05/01/2003 1,768.15 1,637.15 1,515,80 1,403.~5 11/01/2003 1,837.55 1,701.40 1,575.30 1,458~55 1,350~5 05/0t~2004 1,90~.70 1,768.15 1,637,15 1,515,80 1,403~45 11~72004 1,984.65 1,837.55 1,701.40 1,575.30 1,¢5~5 05/01/2005 2,O62,55 1,909'.?0 1,T68.15 1,637.15 1,515~80 11/0t~2003 2,143,50 1,~84.65 1,837.55 1,701,40 1,575~ 05/0~/20O6 2,227.65 2,0&Z.55 t,99~.70 1,768.~3 1,637.15 11/01/2006 2,3~5.05 2,143.50 1,984.65 1,837.05 1,701~40 05701/2007 2,405.95 2,22~.65 2,062.55 1,90~.70 1,768,.i1~ 11/01/2007 2,50b.35 2,515.05 2,143.50 1,~84~.65 1,83~.~5 05/017~008 2,598,50 2,405.95 2,227.63 2,0621.55 11£01/~008 2,7~0.50 2,5~0.30 2,315.05 2,143;.50 03/81/~00~ 2,8o6.50 2,598.50 2,405.95 2,~2~.65 2,0~,.~S 11/.0~/2009 2,9t6~65 2,700.50 2,500.35 2,315,05 05/0J/2010 3,03~;15 2,8O6.30 2,598.50 2,405?5 11/~/2010 3,159.10 2,916.65 2,700.50 2,50~[35 05/01/2011 3,2~.7~ 3,031.13 2,8o6.5o 2,598~50 2,405.~ 11/~t/L~Ol 1 3,402 25 3,150.10 2,916.65 2,700~50 2,500~3~ 05/01~Z012 3,535.80 3,273.75 3,03~.1~ 2,8O6,50 11/91~/2_.012 3,674.55 3,40~.25 3,150.10 2,916~65 05/01/J0~3 3,818.s0 3,535.80 3,273.~ 3,031.I5 2,806.50 11/~1~13 3,940.?0 3,674.55 3,402.25 3,100.10 2,915.~5 05/01/28t~ 4,124.45 3,818.80 3,535.80 3,273.75 3,031,15 11701/2014 4,286.35 3,968.70 3,674-55 3,40~,25 3,150,10 05/~/2055 4,454.60 4,124,45 3,8~8.80 3,535,00 11/0~2015 4,629-45 4,286,35 3,968 70 3,674.55 3,402[25 05/~;~/201~ 4,811.15 4,454~60 4,12~.45 3,818.80 3,5~5.80 11/~Z~01~ 5,000.00 4~629~.45 4,28~.35 3j968,70 03/0~/2017 4,8t~.15 4,454.60 4,124,45 3,818,~80 11/~ ~2017 5,000.00 4,629.45 4,286.35 3,9~.70 05/Qt/Z018 11/~/2018 4,811.15 4,454;60 4,124.45 05/~j~2020 5,000.00 4~6~,~5 5,000.00 $33,434,415 CITY OF BOYNTON BEACH, FLORIDA WATER AND SEWER UTILITY REVENUE BONDS SERIES 1999 BOND PURCHASE AGREEMENT October 10, 1990 Honorable Mayor and Members of the City Commission of the City of Boynton Beach, Florida 100 East Boynton Beach Boulevard Boynton Beach, Florida 33425 Ladies and Gentlemen: The undersigned, Smith Barney, Harris Upham & Co. Incorporated (the "Representative,,), acting on behalf of themselves and Southeastern Capital Group, Inc., Alex. Brown & Sons, Incorporated and Smith~ Mitchell & Associates, Inc., (collectively, the "Under- writers',) offer to enter into this Bond Purchase Agreement with the City of Boynton Beach, Florida (the "City"), which, upon the acceptance of this offer and the execution of this Bond Purchase Agreement by the City, shall be in full force and effect in accordance with its terms and shall be binding upon the City and the Underwriters. All capitalized terms herein not otherwise defined shall have the meanings ascribed to such terms in the Official Statemen~ (as hereinafter defined). The Representative has been duly authorized to execute this Bond Purchase Agreement and has been duly authorized to act hereunder by and on behalf of the other Underwriters with respect to all matters related to the sale and delivery of the above- referenced bonds (the "Series 1990 Bonds"). This offer is made subject to your acceptance and execution of this Bond Purchase Agreement on or before 11:59 p.m., Eastern daylight time, on the date hereof, and, if not so accepted, will be subject to withdrawal by the Underwriters upon oral or written notice delivered by the Representative to the City at any time prior to the acceptance hereof by the City. 1. Purchase of Bonds. Upon the terms and conditions and upon the basis of the representations, warranties and agreements hereinafter set forth, the Underwriters hereby jointly and severally agree to purchase from the City for offering to the public all (but not less than all) of the aggregate principal amount of the Series 1990 Bonds, and the City hereby agrees to sell to the Underwriters all (but not less than all) of the Series 1990 Bonds at a purchase price of $32,456,202.47 (taking into account original issue discount on certain of the Current Interest Bonds of $476,696.30), (the "Purchase Price"), plus accrued interest on the Series 1990 Bonds that are Current Interest Bonds from October 1, 1990 to the day of ~losing (hereinafter defined) , payable to the City in New york Cleari~nghouse Funds, except for the portion of the Purchase Price representing the premium for the m~nicipal bond insurance, policy,, (t,h,~ "Policy") to be issued by AMBAC Indemnity Corporation ( A~BAC ) which shall be payable in immediately available funds. The Underwriters agree to make a bona fide public offering of substantially all of each maturity of the Series 1990 Bonds to the public at initial public offering prices set forth in the Official Statement (hereinafter defined); provided, however, that the Underwrit~e~s reserve the right to-make concessions to certain dealers, certain dealer banks and banks acting as agents and to change such initial public offering prices as the Underwriters shall deem necessary in connection with the marketing of the Series 1990 Bonds. 2. Good Faith Deposit. Delivered to the City herewith, as a good faith deposit, is a corporate check of the Representative payable to the order of the City in the amount of $334,344, as security for the performance by the Underwriters of their obligation to accept and to pay for the Series 1990 Bonds at Closing in accordance with the provisions hereof. In the event that the City accepts this offer, said check will be held uncashed by the City as a good faith deposit. At the Closing, the check shall be returned to the Representative. In the event the City does not accept this offer, the check shall be immediately returned to the Representative. If the Underwriters fail (other than for a reason permitted hereunder) to accept delivery of and pay for the Series 1990 Bonds at the Closing as provided herein, the check may be cashed by the City and the proceeds retained by the City as and for full liquidated damages for such failure and for any and all defaults hereunder on the part of the Underwriters, and the retention of such amounts shall constitute a full release and discharge of all claims and damages for such failure and.for any and all suoh defaults hereunder on the part of the Underwriters. The City understands that in such event the City's actual damages may be greater or less than such sum. Accordingly, the Underwriters waive any right to claim that the City's damages are less than such sum and the City's acceptance hereof shall constitute a waiver of any right it may have to additional damages from the Underwriters. In the event that the City fails to deliver the Series 1990 Bonds at the Closing, or if the City is unable at or prior to the Closing date to satisfy or cause to be satisfied the conditions to the obligations of the Underwriters contained in this Bond Purchase Agreement, or if the obligations of the Underwriters contained herein shall be cancelled or terminated for any reason permitted by thus Bond Purchase Agreement, the City shall be obligated to immediately return the good faith deposit check to the Representative as a~d for full liquidated damages for such0~ailure and for any and all defaults hereunder on the p~rt of the City, and the return of the good faith deposit check to the Representative shall constitute a full release and discharge of all claims and all defaults hereunder on the understand that in such event greater or less than such sum. hereby waives any right to claim that the are less than such amount a~ the of this Agreement shall constitute a the Un~erwrlters may haYe to additional 3o The Series 1990 Bonds. The Series 1999 Bonds shall be as described in, and shall be issued and secured under and pursuant to, Resolution No. 85-YYY, adopted by the City Commission of the City (the "City Commission") on November 19, 1985, as amended and supplemented.by R~sol~utlons' No. 85-ZZZ and 85-AAAA adopted by the City commission On ~ovember 26, 1985 and Resolution No. 85-JJJJ adopted by the City Commission on December 17, 1985 and as supplemented by a series resolution authorizing the issuance and providing for t~e terms of the Series 1990 Bonds (the "Series ResolutiOn,,) adop~ed by the City Commission on October 10, 1990, (collectively, the "Bond Resolution"), and shall be issued in accordanc~ with the requirements of the Constitution of ~he State of Florida, Chapter 166, Florida Statutes and other applicable provisions of law (~llectively the "Act"). The Series 1990 Bonds shall mature on such. dates, shall bear interest at such rates, and shall be subject to ~edempt±on as set forth in the Bond Resolution. Payment e? principal of, and interest on, the Series 1990 Bonds shall be i~suredby~AMBAC. In co~nnection with the public offering of the Series 19~0 ~nds, the underwriters have d~livered to the City a letter cont~ining the information required bv Chapter 218.385(4), of t~e ~lorida Statutes which letter is in~ the ~orm attached hereto as Exhibit E. It shall be a condition to the obligation of the City to sell and deliver the Series 1990 Bonds to the Underwriters, and the obligation of the Underwriters to purchase and accept delivery of the Series 1990 Bonds, that the entire aggregate principal amount of the Series 1990 Bonds shall be sold and delivered by the City and paid forby the Underwriters at the Closing. 4. Official Statement. Prior to the time of acceptance hereof, the City shall have provided to the Underwriters an official statement relating to the Series 1990 Bonds that the City deems final as of its date, except for certain information permitted to be omitted under 17 C.F.R. §240.15c2-12 (such official Official Statement" time of or before deliver to certified ~eliveryof efer~ed to as as City, of the Final and cover page thereof and all appendices is herein referred to as the "Preliminary and is attached hereto as Exhibit A). At the the City's acceptance hereof, the City shall an executed original counterpart or ; resolution authorizing the execution and Bond Purchase Agreement by the City (hereinafter "~ward ResolUtion"). In a~dition, as promptly date hereof, but within not more than the date of execution hereofby the Underwriters copies of a final (th~ Final official statement") in to enable the Underwriters to comply with 17 ~4). The City authorizes the use of copies ~ment in connection ~ith the public · ~he ~i~y~also approves prior ~O ~he date hereof Statement. 5. Repres~tations and W~rranties of the City. The City represents and/~a~r~n{s to the Underwriters as follows: (a) As of their respective dates, at the time of acceptance hereof and at the time of Closing, the statements and .information contained in the Preliminary Official Statement (other than as modified in the Final Official Statement) and the Final Official Statement, as of their respective dates, pertaining to the City, the 1990 Project (as hereinafter defined), the System (as hereinafter defined), the Series 1990 Bonds, Other Capital Projects, Water and Sewer Rates and Impact Fees and t~e Bond Resolution are and will be accurate in alt material respects, and do not and will not contain any untrue statement of a material fact or omit to state any fact necessary to make the statements therein, of the circumstances under which they we .... re made, not misleading. In addition, any amendments to the Final Official Statement prepared and furnished by the City pursuant to. §6 hereof will not contain any untrue statement of a material fact or om~it to state any material fact necessary to make the statements therein, in the light of the 4 circumstances under which they were made, not misleading. The term "System" used herein refers to the existing water treatment and distribution system and the wastewater ~ollectionand disposal system owned and operated by the City, including the C%ty's joint interest with the City of Delray Beach, Florida in the regional wastewater treatment plant, together with the 1990 Project and any improvements to the foregoing. The tel~m "1990 Project" used herein refers to the acquisition and construction of improvements to the System as described in the Final Official Statement. (b) As of its date, the Preliminary Official Statement was deemed "final" by the City for purposes of 17 C.F.~. §240. I5c2-12[b)(1) and as of the date hereof, the hand marked Official Statement attached hereto as Exhibit A (and referred to herein as "Official Statement") is deemed "final" by the City for purposes of 17 C.F.R. §240.15c2-12(b)(4). (c) When executed and delivered bythe City in accordance wit~ the provision~ of this Bond Purchase. Agreement, the ~erles 199~ Bonds will have been duly authorized by the City, in the manner required under applicable law, executed, issued and delivered and will constitute valid and binding obligations of the City, enforceable against the City in acco .th their terms, in confo~mance with the Act and the Bond such enforceab&tity b~eing subject to reorganization noratorium or similar laws affecting th~ creditors' rights to the exercise of discretion in general principles of equity. (d) The adoption by the City of the BOnd Resolution and the execution and delivery by the Cityof this Bond Purchase Agreement, the Series 19-90 Bonds, and all other documents executed and delivered by the City in connection with the issuance of the Series 1990 Bonds (collectively, along with the Bond Resolution, the "Bond.Documents") and the compliance by the City with the provisions thereof~ will not in any material respect conflict with or result in a breach or violation of. any of the terms or provisions of, or constitute a default u~der, any agreement or other instrument to which the City zs a party or by which the City is bound, or any existing l~w, administrative regulation, court order or consent decree to which the City or its property is subject. (e) The City will furnish such information, execute such instru/uents and take such other action in cooperation with the Underwriters as the Representative may reasonably request, to (i) qualify the Series 1990 Bonds for offer~and sale under the Blue Sky or other securities laws and regulations of such states and other ju~isdictionsofthe United States of America as the Undei-writers may designate and (ii) determine the 5 eligibility of the Series 1990 Bonds for investment under the laws of such states and other jurisdictions and will use its best efforts to continue such qualifications in effect so long as required for the distribution of the Series 1990 Bonds. This paragraph shall not, however, require the City to submit to the jurisdiction of a court of any state other than Florida. (f) Between the date of this Bond Purchase Agreement and the time of Closing, .t~.e City will not execute any bonds, notes or other Obligations for borrowed money, other than those the proposed issuance or incurring of which is referred to explicitly i~ the Final Official Statement, without giving prior written notice thereof to the Representative. (g) The City is, and will be at the date of Closing, duly organized and validly existing as a municipal corporation under the Constitution and laws of the State of Florida, with the power and authority set forth in the Act. (h) The. City (i) has full legal power and authority to adopt the Bond Resolution; to execute and deliver this Bond Purchase Agreement and the other Bond Documents; to issue, sell and del,lver the Series 1990 Bonds; and to carry out and consummate )ns contemplated by this Bond Purchase Official Statement and the other Bond Documents; (i~ has in full force and effect all consents, approvals or other actions by or filings with any for the execution and delivery Agreement and the other Bond the performance by the City of the )latedthereby; (iii) represents that from by the City hereof through the date of the Clesing, as contemplated by the Final Official Statement, will not incur any material liabilities, direct or or enter into anytransaction that could adversely af~ transactions contemplated hereby or by the Bond and there shall not have been any material condition, financial or physical, of the City or the System other than changes in the ordinary course of bus£ne~s or in ~the normal operation o~ the System operated by the City tha~ could adversely affect th~ transactions contemplated hereby; (iv) represents that tha execution and delivery by the ¢~ty of this Bond Purchase Agreement, the the other Bond Documents, the compliance ions thereof, and the carrying out City of its obligations under such will not conflict with or constitute a default under any law, administrative instrument or agreement to which the which the City is or any of its Series 1990 by the a~d documents ~nd~ a breach of or (i) Except as disclosed in the Final Official Statement, to the best knowledge of the City, as of the date hereof, there is no actiont suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, government agency, public board or body, pending or threatened against the City, affecting or seeking to prohibit, restrain or enjoin the levy, imposition and collection of rates and charges for the nee of the services and facilities furnished by the System (hereinafter referred to as "Rates and Charges") as provided in the Bond Resolution or the sale, issuance or delivery of the Series 1990 Bonds or contesting or affecting the City's levy, imposition and oollection of Rates and Charges as provided in the Bond Resolution, the validity or enforceability of the Act in any r~spect relating to authorization for the issuance of the Series 1990 Bonds or the adopt or contesting theexclusion from ¢ foderal income.tax purposes of interest on .es 1~90 Bonds, or contesting the completeness or Final Statement or any supplement or the city or its issuance of the 1990 Bonds, the the Bond Resolution, or execution and detivery by oif this Bond ~urchase Agreement. the date after the (ii) person the end any which shall to occur the not time it Final City a~d Final necess the is del a to 0ffi~ial Statement. From ~I Statement is delivered to the event later than seven (7) business days and during the shorter of (i) 90 days from Undez~griting period" (as hereinafter defined) or ~l Official Statement is available to any nationally recognized municipal securities (but in no case less than 25 days following period), (A) the C~ty will not adopt ~lement to the Final Official Statement to furnished with a copy, the Underwriters or which shall be disapproved by Counsel ~s or Bond Counsel and (B~ if any event shall of which it may be necessary, in the opinion of R~presentative, to amend or supplement the Final order to make the Fi~a~l Official Statement of the circumstances existing at the to a purchaser, tke City shall, at its and furnish to the Underwriters, a copies of an amendment o~ or supplemen~ to the (in form and substance satisfactory to the ) which will amend or supplement the so that it will mot contain an untrue fact or omit to State a material fact ) make the statements ~e~ein, in the !~ght of at the timethe Final Official Statement not misleading. The term "end of the means: the later of (i) the date of Closing or 7 (ii) the date on which the Underwriters do not retain, either directly or as a member of an underwriting syndicate, an unsold balance of the Series 1990 Bonds for sale to the public. The Representative will notify the City promptly upon the occurrence of the event described in clause (ii) of the preceding sentence. The City will promptly notify the Underwriters of the occurrence of any event of which it has knowledge, in its opinion, is an event described in clause CB) of the preceding sentence. 7. Closinq. On the terms and conditions set forth in this Bond Purchase ~Agreement, the Underwriters shall purchase all (and 1990 Bonds that are Current Interest Bonds to the date of Closing, as set forth in section 1 hereof, and the city shall deliver the of the Series 1990 Bonds in the manner 24, 1990 at 11300 a.m., prevailing other d~te or time as may be deliver (the the City shall in form to the at a by in New & Co and duly that it shall at 9 Trust for of the shall Purchase Price for he~eof and the deliver the and other .on 8 hereof. T~e execution and documents is to at of Bond Counsel defined) 625 Drive, Suite 900, West Palm Beach, ~ke~t£ver~ located: at Florida. 8. Conditions of Closinq. The Underwriters have entered into this Bond Purchase Agreement in reliance upon ~he representations and warranties of the City herein contained and~the performance by the City of its obligations hereunder, both as!of the date hereof and as of the time of Closing. The obligations of the Underwriters hereunder are subject to the following conditions: (a) At the time of the Closing, (i) the Bond Documents and any other documents deemed necessary in connection with the issuance of the Series 1990 Bonds skai1 be in full force and effect and shall not have been amended, modified or sup- plemented in any material respect prior tO the Closing, except as may have been agreed to in writing bE the City and the Representative, and the City shall have duly adopted and there shall be in full force and effect the Bond Resolution and such additional resolutions, or ordinances or agreements as shall, in the opinion of Josias & Goren, Fort Lauderdale, Florida, City Attorney of the City ("City Attorney"), Moyle, Flanigan, Katz, FitzGerald & Sheehan, P.A., Bond Counsel ("Bond Counsel") and Mayer, Wollett & Rossow, Counsel to the Underwriters ("Counsel to the Underwriters"), be necessary in connection with the issuance of the Series 1990 BondS, (ii) the representations and warranties of the City herein shall be true and accurate in all material respects and (iii) the City shall perform or have performed all obligations required under or specified in this Bond Purchase Agreement to be performed at or prior to the Closing° (b) At the date of execution hereof and at the Closing, the Bond Resolution shall have been duly approved and adopted by the C~ty, Shall be in full force and effect, and shall not have been amended, modified or supplemented, except to the extent to hlch~ the Representative shall have given ~ts prior written consent and ~11 have been taken in conhection with the issuance of the Series i990 Bonds a~ in .the opinion of Bond ~ounsel the ~,r~ ,, s~alt be necessary and in connection with the trans~ctlons c0ntem~lated h'ereby. (c) At. ~he ~losing there will be no pending .pr threatened, iitlga~lon or proceeding of any nature seeking to restrain or en3oin the issuance, sale or delivery of the Series 1990 Bonds, or the pledge collection or application oft he Rates and Charges to pay the principal of and ~nt~rest on t~e Series 199~ Bonds or in any way contesting .or affecting the validity or enforceability of the Series 1990 Bonds, the Bond Resolution, or the Bond Purchase Agreement or contesting in any way the proce'edings of the city taken with respect thereto, or contesting in anyway the due existence or powers of the City or the title of any of the members of the City Commission or officials of the City to their respective offices and the Underwriters will receive the certificate of the Mayor and the Clerk to the foregoing effect or an opinion of the City Attorney that any such litigation ~s without mer±to (d) Except for the issuance of its Public Service Tax Revenue Bonds, Series 1990 in the aggregate principal amount of $9,215,000, there shall have been no material adverse change in the financial condition of the City since Sep~e.~ber 30, 1989 other than as set forth in the Final official Statement. (e) At or prior to the Closing, the Underwriters shall have received the following documents: 9 (i) The unqualified approving opinion of Bond Counsel, dated the date of Closing, substantially in the form appended to the Final Official Statement as Appendix G and a letter of such Bond Counsel, dated the date of Closing and addressed to the Underwriters, to the effect that the foregoing opinion addressed to the City may be relied upon by the Underwriters to the same extent as if such opinion were addressed to them. (ii) A supplemental opinion of Bond Counsel, dated the date of the Closing and addressed to the Underwriters to the effect that: (A) the information contained in the Final Official Statement under the headings "Introduction", "Description of the 1990 Bonds", "Redemption Provisions", "Source of Payment and Security for the 1990 Bonds" and "Tax Exem tion". and the information contained in "Appendix B - Summary. of certain Provisions of - the Bond Res. ol. utlon" and "Appendix G - Form of Bond Counsel Opinion", to the eXtent the information under such headings and in such Appendices purports to s'u~ut~arize portions of the Bond Resolution, the Series 1990 Bond~., or the law referred to therein, constitutes a faint summary of the portions of such documents and the law purported to be summarized therein. (iii) A certificate or certificates~ dated the date of Closing, signed by the Mayor or Vice Mayor and the City Manager or Assistant City Manager, in form satisfac- tory to Bond Counsel, the Representative and Counsel to the Underwriters, in which such officials state that, to the best of their knowledge: (A) the representations and warranties of the City contained in this Bond Purchase Agreement are true and correct in all material respects as of the Closing, the City has satisfied all conditions on its part to be performed or satisfied hereunder at or prior to the Closing, and the information and statements contained in the Final Official Statement (except for the information in the sections entitled "Book-Entry-Onty:System","Municipal Bond InsUrance" and "Tax Exemption" as to which no certificate need be made by the City) are true, correct and complete in all material respects fort he purposes for which such Final Official Statement is to be used, and nothing has come to their attention that would lead them to believe that such information in th9 Final Official Statement includes any untrue statement of 10 a material fact or omits to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (B) no event affecting the City has occurred since the date of the Final OfficiatStatement which should be disclosed in the Final Official Statement for the purposes for whick it is to be used or which it is necessary to disclose therein in order to make the statements and information therein not misleading in any material respect; (C) the financial statements and the other financial and statistical d~ta relating to the City and the System included in the Final Official Statement are true and correct as of the date of such certificate; (D) since t--he date of the financial statements of the City included in the Final Official Statement as Appendix C thereto, (i) no material and adverse change has occurred in the financial condition of the C~ty or the System, except for the issuance of the City's $9,215,000 Public Service Tax Revenue Bonds. Series 1990 dated May 1,1990 .... and (ii) the City has not incurred any material ±iaDi£itles other than in the ordinary course of business, except for tke issuance of the City's $9,215.000 Public Service Tax Revenue Bonds, Series 1990 dated May 1, 1990 and except as set fortk in or contemplated by the Final O~fici~l Statement; (E) no obligations issued or guaranteed by the City are in default as to payment of principal or interest or have been in default as to payment of principal or interest at any time after December 31, 1975; (F) except as disclosed in the Final Official Statement, there is no litigation of which either of them have notice, and to the best knowledge of each of them no litigation is pending or threatened (1) to restrain or enjoin the issuance or delivery of any of the Series 1990 Bonds, (2) in any way contesting or affecting any authorityfor the issuance of the Series 1990 Bonds or the validity of the Series 1990 Bonds, the Bond Resolution, the Rates and Charges, or this Bond purchase Agreement, (3) in any way contesting the corporate existence or powers of the City, (4) to restrain or enjoin the collection of revenues pledged or to be pledged to 11 pay the principal of, premium, if any, and interest on the Series 1990 Bonds, (5) which may result any material adverse change in the business, properties, assets and the financial condition of the City taken as a whole, or (6) asserting that the Final Official Statement contains any untrue statement of a material fact or omits any material fact necessary to make the statements therein, light of the circumstances under which they were made, not misleading; and (G) the Final Official Statement (except for the information in the sections entitled "Book- Entry-Only System", "Municipal Bond Insurance,, and "Tax Exemption,,) did not as ef its date, and does not as of the date of Closing contain any untrue statement of a material fact or omit to state a material fact required to be included therein or make the statements contained of the circumstances inwhi~h they were made, not misleading. (iv) An opinion., dated the date of Closing, of the City Attorney, addressed to the City and to the in form a~d substance satisfactory to the and Counsel to the Underwriters to the effect (A) the City is a duly existing municipal corporation of the State of Florida (the "State") and had and has good right and lawful authority under the Constitution and laws of the State to adopt the Bond Resolution and to authorize and issue the Series 1990 Bonds; the Rates and Charges and the Bond Resolution have been duly adopted bythe City, are in full force and effect and constitute the valid, legal and binding obligations of the City enforceable in accordance with their terms as part of its contract with the several holders of the Series 1990 Bonds; and under the laws of the State, the holders of the Series 1990 Bonds are not precluded pursuant to any sovereign immunity laws or similar laws from bringing proceedings.to enforce the obligations imposed by the Bond Resolution; (B) as of the Closing date, the City has duly performed all obligations to be performed by it pursuant to the Bond Resolution; (C) the Bond Purchase Agreement has. been duly authorized, executed and delivered by the City and constitutes a valid and binding agreement of the City enforceable in accordance with its terms; (D) the adoption of the Rates and Charges and the Bond Resolution and the execution ar~ delivery of the Bond Purchase Agreement, and the Series 1990 Bonds and compliance with the provisions thereof, will not conflict with or constitute a breach of or default under any existing law, administrative reg. ulation, court decree, resolution or agreement to which the City is subject and the City has the power and authority under the laws of the State to pledge .the reven~es so pledged under the Bond Resolution and to budget, appropriate and/or use any other Eunds of the City, to the extent provided in the Bond Resolution, to pay the Series 1990 Bonds and interest thereon; (E) The City is authorized under the Constitution and Laws of the State to le?~_, impose and co-llect the Rates and Char~es to provide for the payment of the Series 1997 Bo~ds, and upon adoption all Rates and. Charges levied in connection with the Series 1990 Bonds shall constitute a valid levy by the City and the holders of the Series 1990 Bonds are not precluded under any sovereign immunity laws or similar laws from bri~ging proCeedings to enforce the obligations of the City under section 502 of the Resoiution, (F) except as disclosed in the Final Official Statement, to the best of his knowledge after due inquiry with respect thereto, no litigation or other proceedings are pending or threatened.in.any court or other tribunal of competent jurisdiction, State or Federal, in any way (A) restraining or enjoinIng the levy, imposition or collection of Rates and Charges or issuance, sale or delivery of any of the Series 1990 Bonds, or (B) questioning or affecting the validity of the Bond Purchase Agreement, the Series 1990 Bonds, the Bond Resolution, or the pledge by the City of the revenues so pledged under the Bond Resolution and the covenan~ to budget, appropriate and/or use other funds as provided in the Bond Resolution, or (C) questioning or affecting the va~idity of any of the proceeding~ for the authorizatioh, sale, execution, registration, issuance or delivery of the Series 1990 Bonds and the security therefor; or (D) questioning or affec%ing (1) the organization or existence of the City or the City Commission or the title to office of the officers thereof, or (2) the power or 13 authority of the City to levy, impose and collect the Rates and Charges; or (E) which could materially adversely affect the operations of the System or the financial condition of the System; (G) the Final Official Statement has been duly authorized, executed and delivered for use in connection with the sale of the Series 1990 Bonds; (H) with respect to the information (other than financial and statistical data) in the Final Official Statement contained under the headings "Introduction", "~he City" and " Litigation", and based upon participation in the preparation of the Final Official Statement, as of the date of such document and at all subsequent times up to and including the date of Closing~ such information did not and does not contain any untrue statement of a materi~l fa~t or omit any material fact requ~red to be stated therein or necessary to make such information not misleading; (I) all approvals, consents, authorizations and orders of any governmental authority or agency having jurisdiction in any matter which would con- stitute a Condition precedent to the performance by the City of its obligations hereunder and under the Bond Resolution and the other Bond Documents have been obtained and are in full force and effect; (J) Ail of the above opinions of t~e City Attorney as to enforceability of the legal obligations of the City may be subject to and limited by bankruptcy, insolvency, reorganization, moratorium and similar laws, in each case relating to or affecting the enforcement of ~reditors rights generally, and other general principles of equity. (v) An opinion of Counsel to the Underwriters, dated the date of the Closing and addressed to the Underwriters, to the effect that: (A) the Series 1990 Bonds are not subject to the registration requirements of the Securities Act of 1933, as amended, and the Bond Resolution is exempt from qualification pursuant to the Trust Indenture Act of 1939, as amended; (B) based upon participation in the preparation of the Final Official Statement as Counsel to the Underwriters and without having undertaken to determine independently the accuracy, completeness or fairness of the statements contained in the Final Official Statement, as of the date of the Closing nothing has come to the attention of such counsel causing them to believe that (1) the Final Official Statement as of its date contained any untrue statement Of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (except for the financial and statistical information contained in the Final Official Statement and the information concerning A~BAC as to all of which no view need be expressed), or (2) the Final Official Statement as of t~e date of the Closing contains any untrue statement of a material fact or omits to state a material fact to be state~ therein o~ ~ecess~ry to make therein, in the light 0f the cir- they were made, not mis- [except as aforesaid). (vi) ~The written approval of Ernst & Young, certi ~lic accountants, of the use of their report in the~ , Official Statement and in the Final OfficJ in "Appendix C, General Purpose of the City of Boynton Beach~ Flor~ the Year Ended September 30, 1989", and the use of name therein and a tette~ dated the date of Clo: effect that, based on their review of the Statement and of minutes of the meetings of the Commission and their discussions with officials the City responsible for accounting and financial nothing has come to their attention which that, during the period from September 30, 28, 19~90, there have occurred the long-term debt of the City, other than as in the Final Official Statement or as repayments of such indebtedness. (vii) Executed originals of the Consulting Engineers' Statement Regarding Improvements to the Regional ~atertreatment Plant a~d the Rate Consultant,s Statement C~ncerning Rate Analysis, included in the Final Official Statement as Appendices E and F, respectively, and the Consulting ~ngineer's Statement on Capital I~provements and Additional Bonds .Test, included in the F~nal Official Statement as Appendix D. (viii) A letter from CH2M Hill', dated the date of the Cl~singl and addressed to the Underwriters, in the form set fo~h in Exhibit "C" hereto, a letter from Camp 15 Dresser & McKee, Inc., dated the date of the Closing and addressed to the Underwriters, in the form set forth in Exhibit "D" hereto, and a letter from David M. Griffith and Associates, Inc., dated the.date of the Closing and addressed torte Underwriters, in the form set forth in Exhibit "E" hereto. (ix) Copies of the fully executed Policy issued by (x) An opinion of general counsel to AMBAC and a certificate of an officer of AMBAC, dated the date of the addressed to the Underwriters, concerning licy and the information relating to AMBAC contained in the Final Official Statement, in form and substance satisfactory to the Representative. (xi) Letters from Moody's Investors Service and standard & , · . . Poor s Corporation.confirming that such rating agencies have issued ratings of "Aaa" and "AAA", respectively,~ for the Series 1990 Bonds. (xii) Such additional certificates, instruments or opinions as to the City Attorney, Bond Counsel or the Underwriters and its cour~sel may deem necessary or deSirable. 9. Termination. The Underwriters may terminate this Agreement by notification from the Representative to the City, if at the time Df or prior to the Closing (a) legislation shall be enacted by the Co~ngress of the United States or adopted by either the United S~ates Senate or House of Representatives or recoI~mended by the President of the United States to the Congress for passage or favorably~reported for passage to either House of Congress by any committee of the House and Senate or a decision by a Court of the United States, including the United States Tax Court shall be rendered or a ruling, regulation or official statement by or on behalf of the Treasury Department of the United States, the Internal Revenue Service, or other governmental agency shall be made, with respect to federal taxation upon interest on state and local bonds, such as the Series 199~ Bonds, or other action or events shall have occurred which have the purpose or effect, directly or indirectly, of mater~ally adversely affecting the federal income tax consequences of any of the transactions contemplated in connection herewith, which in the reasonable opinion of the Representative, materially adversely affects the market for the Series 1990 Bonds or the sale by the Underwriters of the Seri~s 1990 Bonds; or (b) legislation shall be enacted or any action sh~ll be taken by the Securities and Exchange Commission which, in th~ reasonable opinion of the Representative and Counsel to the UnderWriters, has the effect of requirimg the contemplated distribution of the Series 1990 Bonds to be registered under the 16 Securities Act of I933, as amended, or the Bond Resolution to be qualified under the Trust Indenture Act of 1939, as amended, or there shall exist a stop order, ruling or regulation by the Securities and Exchange Commission the effect of which is that the issuance, offering or sale of the Series 1990 Bonds, as contem- plated hereby or by the Final Official Statement, is in violation of any provision of the Securities Act of 1933, as amended and as then in effect, or of the Securities Exchange Act of 1934, as amended and as then in effect, or that the Bond Resolution is not exempt from quantification pursuant to the Trust Indenture Act of 1939, as amended and as then in effect; or (c) there shall exist a~y even~ which in the reasonable jud.gment of the Representative either el) makes unt.rUe or incorrect in a~? mater~al respect any statement or information contained in the Final Official Statement or (ii) is not reflected in theFinal Official Statement but should be reflected therein or in an attachment thereto in order to make of information contained the~£n not respect; or (d) to thel the affects or under Rul~making have or the effect of s~lch outbreak, markets or States of or been or force, been by or by any other a general by and or (g) for o fi or ~ior bonds~ 17 or sale or consent of or other obli~ of th~ 1990 or Bond ities or of to for borrowed money, or incurred any material liability for borrowed money, or incurred any material liability direct or indirect, or there has been an adverse change of a material nature in the financial position, results of operation or condition, financial or otherwise, of the City in all cases other than in the ordinary course of its business, or other than as contemplated in the Official Statement, which change could adversely affect the transactions contemplated hereby. If the City shall be unable to satisfy the conditions to the obligation of the Underwriters to purchase, to accept delivery of and to pay for the and or if any Sections 10 and i waive~ one or more of the conditions Agreen~e~nt and proceed with the Closing. les 1990 Bonds contained in this Agreement es not waive such inability in writing, the Underwriters shall be terminated for this Agreement, this Agreement shall be 3nderwriters nor the City shall have any except for the return by the City good faith deposit and as provided in ~f. However, the U~derwriter? may, in their by written notice provided by the imposed by this 10. Expenses. (a) and the consultants other than assist the Attorney., of the and City as ~Underwriters shall be under no obligation to pay, shall pay, (i) the City's engineers, rate other experts, advisors or consultants specified in paragraph (b) below retained to (ii) the fees and disbursements of the City all travel and other out-of-po~ket expenses staff and officials as incurred in connection (iv) the costs referred to in §6(B) hereof, the premium for the Policy and associated fees the credit rating agencies referred to in hereto; all such expenses to be paid by the costs. (b.) ~The Underwriters shall pay (i) all underwriting and adve~r~.islng ~e~penses in connection with the public offering and distribution of the Series 1990 Bonds, (ii) the fees and disbursements of Counsel to the Underwriters, (iii) the cost of preparation and printing of the Preliminary Official Statement and the Final Official Statement (other than amendments or supplements thereto referred to in §6 hereof) , (iv) the cost of the preparation, printing and execution of the Series.1990 Bonds, (v) the fees and disbursements of Bond Cou .nsel, (vl} th.e fees and disbursements of the bond registrar, th~ paying agent, the City's independent certified public accountants, (vii) the cost of preparation and printing of the blue sky me~orandum and legal investment survey, (viii) fees for bond ratings, (ix) the cost of reproducing ali 18 necessary copies of any of the Bond Documents, (x) the cost of the preparation and printing of any selling group agreement and this Bond Purchase Agreement, and (xi) all travel and out- of-pocket expenses of the Underwriters. 1I. Survival of Contract. The respective agreements, representations and warranties and other statements of the City, the Underwriters and their respective officials, officers and partners set forth in, or made pursuant to, this Bond Purchase Agreement will remain in full force and effect regardless of any investigation, or statement as to the results thereof, made by or on behalf of the City, the Underwriters or any of their respective officials, Officers, partners or directors or any controlling person, and will survive delivery and Payment of the Series 1990 Bonds. 12. Benefit. This Bond Purchase Agreement is made for the benefit of the parties hereto (including the successors or assigns of the Underwriters). No other person shall acquire or have any right hereunder or by virtue hereof. 13. Execution in Counterpartm. This Bond Purchase Agreement may be executed in any number of counterparts, all of which taken together shall be one and the same instrument, and any parties heretO may execute this Bond Purchase Agreement by signing any such counterpart. The execution of this Bond Purchase Agreement has been duly authorized by the City Council of the City. 14..Notices. Any notices or other communications to be given to the ClUny ~r this Bond Purchase Agreement may be given by mailihg the same to the City Manager, City of Boynton Beach, 100 East Boynton ~each Boulevard, Boynton reach, Florida 3 3425, and any ~ch notice! or Other communication to be given to the Underwriters or to the Representative may be mailed to Smith Barne~, Harris Upham & C~. Incorporated, 625 North Flagler Drive, West Palm Beach; Florida 33401, Attention: Public Finance Department. .1~. Severability. The invalidity or enforceability of any pro¥is~bn of thisl Bond Purchase Agree~n~ as to any one o~ more jurisdictions Shall not affect the validity or enforceability of the balance of this Bond Purchase Agreement as to such jurisdiction or j~risdictions~ or affect in any way such validity or enforceability as to any other jurisdiction. 16. Waiver or Modification. No waiver or modification of any one or more of the terms and conditions of this Bond Purchase Agreement shall be valid unless in writin~ and signed bythe party or parties making such waiver or agreein~ to such modification. 19 17. Governinq Law. This Bond Purchase Agreement shall be governed by and construed in accordance with the laws of the State of Florida. Very truly yours, SMITH BARNEY, HARRISUPHAM& CO. INCORPORATED, a~ representative of the Underwriters named in the first paragraph hereof ACCEPTED on October /O, 1990 ~//~ayor ]SEAL] FLORIDA Attest: C~ Cle~ .... ~- ' Approved and legal NJK02 Boynt.bnd 20 EXHIBIT "C" October , 1990 Smith Barney, Harris Upham & Co. Incorporated 625 North Flagler Drive West Palm Beach, Florida 33401 Re: City of Boynton Beach, Florida Revenue Bonds, Series 1990 Water and Sewer Utility Dear Sirs: At your request, this letter is being delivered to you pursuant to Section 8(e)(viii) of the Bond Purchase Agreement dated October 10, 1990 between the City of Boynton Beach, Florida (the "City") and yourselves with respect to the City's Water and Sewer Utility Revenue Bonds, Series 1990 (the "Bonds"). We consent to (i) the inclusion in the Preliminary Official Statement dated October 3, 1990 relating to the Bonds (the "Preliminary Official Statement"), as Appendix D, our cover letter and Statement on Capital Improvements and Additional Bonds Tests relating to the City's expansion of its wa=er and sewer utilities system (the "Project"), dated October 2, 1990 (the "POS Engineering Report,), (ii) the,inclusion in the Final Official Statement dated , 1990 relating to the Bonds (the "Final Official Statement"), as Appendix D, our cover letter and Statement on Capital Improvements and Additional Bonds Tests relating to the Project, dated , 1990 (the "Engineering Report") and (iii) the references to us in the Preliminary Official Statement and the Final Official Statement. The POS Enqineerinq Report and the Engineering. Report were prepared in accordance wi~h generally accepted engineering practices. C-1 Smith Barney, Harris Upham & Co. Incorporated October , 1990 Page 2 As of the date of this letter, we know of no change in matters described in our POS Engineering Report (except for changes contained in the Engineering Report) or our Engineering Report or matters contained in the Preliminary Official Statement (except for changes contained in the Final Official Statement) or the Final Official Statement attributed to us. We believe that the assumptions used in compiling our POS Engineering Report and Engineering Report are reasonable. of an fact. Further, based upon our participation in the preparation of the Preliminary official Statement andthe Final Offi~ia~ Statement as consulting engineers for the project but without representina that we have made an independent review of matters outside the ~c~pe of our engagement, and wit~out having undertak~n.to determine Independently the accuracy, completeness or fairness of the statements Preliminary Official Statement and the Official Statement t~o~? concerning the Project and the Final City's Water ~nd Sewer Ut~ity system), nothing has come to our a~ttention that would cause us tc believe °that (A) the POS Engineering Repo~t, as Statement, contained any fact, o~ ~mission of an Official Statement or the the Final ~fficial Statement a~y untnue statement fact of a~ adverse material Very truly yours, CH2M Hill By: Authorized Officer C-2 EXHIBIT "D" October, 1990 Smith Barney, Harris Upham & Co. Incorporated 625 North Flagler Drive West Palm Beach, Florida 33401 Re: City of Boynton Beach, Florida Water and Sewer Utility Revenue Bonds, Series 1990 Dear Sirs: At your request, this letter is being delivered to you pursuant to Section 8(e)(viii) of the Bond Purchase Agreement dated October 10, 1990 between the City of Boynton Beach, Florida (the "City") and yourselves with respect to the City's Water and Sewer Utility Revenue Bonds, Series 1990 (the "Bonds"). We consent to (i) the inclusion in the Preliminary Official Statement dated October 3, 1990 relating to the Bonds (the "Preliminary Official Statement"), as Appendix E, our Statement Regarding Improvements to the Regional Wastewater Treatment Plant (hereinafter, our "POS Statement"), (ii) references to us in the report on the City's Water and Sewer Utility System expansion plan (the "Project"), dated October 2, 1990, prepared by CH2M Hill (the "POS Engineering Report") and (iii) the inclusion of our Statement Regarding Improvements to the Regional Wastewater Treatment Plant, dated October , 1990 (hereinafter, our "Final Statement") in the Final official Statement dated , 1990 relating to the Bonds (the "Final Official Statement"), and (iv) references to us in the report on the Project, dated , 1990, prepared by CH2M Hill (the "Engineering Report"). We have reviewed the POS Engineering Report, the Engineering Report, the Preliminary Official Statement and the Final Official Statement in our capacity as value engineers for a portion of the Project. D-1 Smith Barney, Harris Upham & Co. Incorporated October , 1990 Page 2 As of the date of this letter, we know of no change in matters described in our POS Statement (except for changes contained in our Final Statement), our Final Statement, the POS Engineering Report (except for changes contained in the Engineering Report) or the Engineering Report, or matters contained in the Preliminary Official Statement (except for changes contained in the Official Statement) er the Final Official Statement relating to the Project. We believe that the assumptions used in compiling our POS Statement and our Final Statement, and in compiling the POS Engineering Report and the Engineering Report, are reasonable. Further, based upon our participation in the preparation of the Preliminary Official Statement and the Final Official statement as consulting engineers for aportion of the Preject but without representing that we have made an outside the scepe of our engagement, to determine independently of the statementscontained and ~he Final Of J Projectandthe come to our fact independent review of matters and without having undertaken fairness Official Statement the ~'system) ~has that (A) the POS S' or the POS of the fficial adverse material ~ or (B): the Final as material fact Or 0mission of ~ of an~adverse Very truly yours, CAMP DRESSER & MCKEE By: Authorized Officer D-2 EXHIBIT "E" October , 1990 Smith Barney, Harris Upham & Co. Incorporated 625 North Flagler Drive West Palm Beach, Florida 33401 Re: City of Boynton Beach, Florida Water and Sewer Utility Revenue Bonds, Series 1990 Dear Sirs: At your request, this letter is being delivered to you pursuant to Section 8(e) (viii) of the Bond Purchase Agreement dated October 10, 1990 between the City of Boynton Beach, Florida (the "City") and yourselves with respect to the City's Water and Sewer Utility Revenue Bonds, Series 1990 (the "Bonds"). We consent to (i) the inclusion in the Preliminary Official Statement dated October 3, 1990 relating to the Bonds (the "Preliminary Official Statement") as Appendix F thereto our letter dated September 28, 1990 (the "POS Rate Analysis Statement',), (ii) the inclusion in the Final Official Statement dated , 1990 relating to the Bonds (the "Final Official Statement"), as Appendix F thereto our letter concerning rate analysis dated , 1990 (the " Final Rate Analysis Statement") and (iii) references to us in the Preliminary Official Statement and Final Official Statement, including references to us in the consulting engineer's report, dated October 2, 1990, prepared by CH2M Hill (the "Engineering Report") contained in Appendix D to the P~eliminary Official Statement and Appendix D to the Final Of Ticial Statement. We have reviewed the Engineering Report and the Final Official Statement in our capacity as rate consultants for the expansion and. upgrading of the City's water and sewer Utility system (the "system,,). E-1 Smith Barney, Harris Upha~ & Co. Incorporated October , 1990 Page 2 As of the date of this letter, we know of no change in matters described in our POS Rate Analysis Statement (except for changes contained in our Final Rate Analysis Statement), our Final Rate Analysis Statement, the Engineering Report or matters contained in the Final Official Statement relating to the Rates and Charges. We believe that the assumptions used in compiling, our POS Rate Analysis Statement and our Final Rate Analysis Statement are reasonable. Further, based.upon our participation in the preparation of the Preliminary Official Statement and the Final Official Statement as rate consultants for the City but without representing that we have made an independent review of matters outside the scope~of our engagement, and without having undertaken to determine independently the accuracy, completeness or fairness of the statements contained inthe Preliminary Official Statement and the Final Official Statement (except those concerning the Rates and Charges), nothing has come to our attention that would cause us to believe that (A) the information in the Preliminary Official Statement or our POS Rate Analysis Statement ?on~ained ~ny untrue statement of an adverse material fac~ or omission of an adverse material fact, or (B) the Final Official Statement, our Final Rate Analysis Statement Qr the En~3ineering Report (with respect to the Rates and Charges), as of t/~ ~he Final Official Statement and as of the date or contain any untrue statement Of an adverse fa~t or omission of an adverse materiai'f~ct. Very truly yours, AND DAVID M . GRIFFITH ASSOCIATES, INC. By: Authorized Officer E-2 Exhibit F DISCLOSURE STATEMENT The undersigned, as representative of the Underwriters, proposes to negotiate with the City of Boynton Beach, Florida for the sale of $33,434,415 principal amount of its Water and Sewer Utility Revenue Bonds, Series 1990 (the "1990 Bonds"), to be completed on this date. Prior to the award of the 1990 Bonds, the following information is hereby furnished to the City: 1. Set forth on Schedule I to this Exhibit E is an itemized list of the nature and estimated amounts of expenses to be incurred by the Underwriters in connection with the issuance of the 1990 Bonds. 2. Set forth below are the names, addresses and estimated amounts of compensation of all "finders", as defined in Section 218.386, Florida Statutes: NONE 3. The amount of the underwriting spread expected to be realized by the Underwriters is 1.5% per Bond which includes the components itemized on Schedule I attached hereto. 4. The management fee to be charged by the Underwriters is $33,000 (or approximately $1.00 per Bond). F-1 5. Set forth below are all other fees, bonuses and other compensation estimated to be paid by the Underwriters on behalf of the City from Bond proceeds in connection with the Bond issue to all persons not regularly employed or retained by them. Underwriters' counsel fee Underwriters. counsel expenses Bond Counsel fee Bond Counsel expenses Printing of Official Statement Bond Registrar and Paying Agent Auditor Rate Consultant $25,000 3,500 25,000 3,500 30,000 25O 7,500 5,500 6o The name and address of the Underwriters connected the Bonds is as follows: Smith Barney, Harris Upham & Co. 625 North Flagler Drive West Palm Beach, Florida 33401 Incorporated Southeastern Capital Group, Inc. 700 West Hillsboro Boulevard Building 3, Suite 102 D~erfield Beach, Florida 33441 Alex. Brown & Sons, Inc. 400 Fifth Avenue South Naples, Florida 33940 Smith, ~itchell & Associates, Inc. 319 Clematis Street, 10th Floor West Palm Beach, Florida 33401 with IN WITNESS WHEREOF, the undersigned has executed this Disclosure Statement on behalf of the Underwriters this /~ day of OC-~ , 1990. SMITH BARNEY, HARRIS UPHAM & CO., INCORPORATED BY: Smith Barney, Harris Upham & Co., Incorporated, as Representative of the Underwriters Second Vice I~resideht F-2 , ~'~_.:m ...... OCT-10-'5~ tOED 15:5Z ID:SMITH BPRNEY WPB TEL N0:4~7-83~5 FR×LINS ~51~ P~Z ~33,434,4X6 an~ Ex~mnmma te'C~nsul~an~ per 1.00 0,~0 8*42 0.75 o.lo 0,75 O.XO 0.09 0o~3 · 0.05 0,03 0,05 0,01 0.4~ 0~4~ 0.45 0.42 0.03 0.~1 0,06 O.~O 0.I5 0.16 O.IS Dated: October 1, 1990, except for the Capital Appreciation Bonds, which shall The capnoned Water and ! City") ha th, madk ha described below. ~ d PRELIMINARY OFFICIAL STATEMENT, DATED OCTOBER 3. 1990 NEW ISSU~BOOK ENTRY ONLY $33,000,000* ¢0 .~ ~> ~-~Tc~'- City of Boynton Beach, Florida Water and Sewer Utility Revenue Bonds, Series 1990 Due: November 1, as shown below construction paying The 1990 agency credit nor 1990 Bonds. available to the : City of Boynton Beach. Florida ("the & Co.. as nominee of The Depository s or any certificate representing > the purchasers, in the principal denominations or who act through, OTC Ionds. payments of principal o individual purchasers ]s on or prior to November 1. 2015' in the authorized denomination 1990 Bonds that are C'arrenf Interest Bonds will be payable y i, ~991, in frae manner described above The 1990 a~ defined hereim and shall be Owners of until the maturity or o maturity as more fully described hereto. funds for the acquisition and a debt service reserve and (iiiq the System certain and of or interest on the The City has received a commitment from AMBAC Indemanity Corporatmn fo~ a policy of municipal bond insurance ~o insure the payment when due of the principal of grid interest on the 1990 Bond~. In t~e opinion of Bond Counsel, under existing law and assuming cpntimdng compliance by the City with certain coven:mrs, interest on the 1990 Bonds is excluded from gross income for federal income tax~nmoses m~d interest on the 1990 Bonds is not aa item of tax preference for Pm~U~PeOS. e,s o,f th.e, fed,e,r~l a[eraatz? ..m, qtm~m ta~,i~,f~ ~;~a~,au~s a~& corporations See, however, the information aer m? neamng tax ~xemption berem for a. descr~ptmn of certmn taxes on corporat ons and for a discussion of cert~,n other tax consequences to holders of th* 1990 Bonds; Bond Counsel is also of the opiuioir that the 1990 onds are exempt from all presem,~ntangible ~¢rsonel;property taxes imposed by the State of Florida AMOUNTS, MATURITIES. IN'!]~REST RA~I'ES AND PRICES OR YIELDS* $ C~rent Interest Serial Bonds Interest Price/ Interest Price Amount Rare YJ~d ~ ,~ Amount Maturity Rate Yield $ % % $ % % Matur~y 1992 I993 1994 1995 t996 $ $ 1997 1998 1999. 2000 Cnrrent Interest Term Bonds due November 1, Current Interest Term Bonds due November 1. (Accrued igterest to be added) $ Capital Appreciation Serial Bonds Original Approximate Principal . Value at Yield to Amount Maturity Maturity Maturity $ 2016 $ % 2017 2018 2019 2020 --Price --Price The l?onds will be offered when, as and if issued and received by the Under~ .item, subject to the unqualified approval of legality and tax-exempt status by Moyle. Flanigan, Katz. FitzGerald and Shee ~an. I~A.. West Palm Beach, Florida, Bond Counsel. Certain legal matters will be passed upon for the City by its City Attorney, Josias ~ Goren, For~ Lauderdale, Floridcc Certain legal matters will be passed upon for the Underwriters by their counsel, Mayer, Wollett & Rossow, Palr~ Be~ch Gardens, Florida. It i~ expected that the 1990 Bonds in definitive .form will be available for deliw w to the Underwriters in New l'orlc Neu York on or about October 2,L 1990. Smith Barney, Harris Upham &~Co. Southeastern Capital Group, Inc. Incorporated Alex. Brown & Sons Smith, Mitchell & Associates, Inc. Incorporated 1990 ~ Preliminary, subject to change OFFICIALS ~ ~ Moyle, Josias BOND}~OUNSEL ~ Florida S Flanigan, Katz, gitzGerald & Sheehan, West Palm Beach, Florida Poa. CH2~'Hill Southeast, Inc. De~rfield Beach, Florida Camp Dresser & McK~ee, Inc. Fort Lauderdale, Florida IL~TE~CONSULT~NT David M. Griffithland Associates, Ltd. TallahaSsee~ Florida '~ Ernst &Young Report of Independent Auditors Certified Public Accountants ph Ds Po nt West Tower 777 S. Flag er Dr Suite 1200 West Palm Beach Florida 33401 Telephone: 407t 655-8500 Fax 407/ 835-9563 The Honorable Mayor and City Commission City of Boynton Beach We have audited the accompanying general purpose ftnanci~% statements of the City of Boynten Beach,~Florida astor September 30, 1989 and for the year then ended as listed 'in the table Of c0~t,ents,. The~ iflna~cial statements are the responsibility pf the City's management.. ~.Our re$ppnsibility is to express an o~inion On.these financial statements'based on,ur ~audit. We conducted our audit in ~ceordance with generally actep~d auditing stan- dards. Those standards require that we plan and perform..t~s ~udi~ to obtain reasonable assurance about whet~e~ .the financia~ )tatemgh~s are tf~eaesi~f material misstatement. An a~dlt includes examln~ng, on 'a tes , evidence supporting the amounts and disclosures in.th~'f~nancial s~at~me~. An audit also includes assessing the accounting principles u:s~d anG s~gn~t~- cant estimates made by management, as. Well as evaluating the 9vera!l finan- cial statement presentatidn. We believe that our audit provides a reason- able basis for our opinion. In our opinion, the general purpose financial statements referred to above present fair!~, =i~ all!matsrial respeots~, tke~fiDancial P°sfti°~ of the City of Bosrnton Bea~k, FloridaI at September 30, 1989 and the .r~bults of its o erations and changes in financial position of its p~oprietary fund types a~d pension trust funds ~for the year then'~nded, i~ cohformity with gen- erally accepted accounting principles. As more fully described inhNote ~ the City-is a defendant in a lawsuit for ne ligence and brBach'of ....... uontract involving fhe Clty~Hall c~nstruction proj- ect. The City has f~led a counterclaim. Th~ ultimate outcq~e zatio~ daml~-t~ pr~senfl~?~e deter~ned~ ~ACcordingly, no prOvlslon, for any ~iability that may result has been made in itke financial statements. Our audit was made for the purpose of forming an opinion on the general pur- ?ose financial statements taken as a whole. The supplemental financial information l~isted in the table of contents are prese~nted for purposes of addilbional analysis and are not a required part of the general purpose financial s~atements of the City of Boynton Beach, Florida. Such info~mation ~as been subjected to the auditing procedures applied in our audit of ~he igeneral purpose financial statement~ and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. January 19, 1990, except as to NoteU, which is dated January 24, 1990 -1- General Purpose Financial Statements and Supplemental Financial Information CITY OFBOYNTON BEACH, FLORIDA ' s mmbe 30, 989 FINANCIAL SECTION Report of Independent Auditors General Purpose Financial Statements Combined Balance Sheet--All Fund Types and Account Groups~ Combined: Statement of Revenue, Ex~ehditures and Changes in Fund Bglance--All Governmental Fund Types and Page Number Enterprise Funds Note: Pa part tg l~etairred' ,, F~:a~iclal 'POsition . , : 12 14 69 7O 72 73 75 76 78 mctu_deO ~herem as t-hese pages are not ~ENEI~AL P[JI1POSE FII~h~CI~L S~AI'g~gl~$ COMBINED BALANCE SHEET--ALL ~UND TYPES AND ACCOUNT GROUPS CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 Governmental Fund ~ .es Capital Special Debt Service Pro~ects neral Revenue -- ASSETS Cash ~overdraft) and cash equivalents--Note C Equity in pooled cash and investments--Notes A and C investments--Notes A and C Deferred compensation deposits Interest receivable Accounts receivable, net-- Note D TaXes receivable--Note A Less allowance for uncollect- ible taXes Other receivables Due from fiscal agent Due from other funds--Notes A and I Due from other governmentS-- N~te E Note receivable Prepaid expenSeS--Note A inventories--Note A Restricted assets--None F Deferred charges--Note A Investment in Regional Waste- water Treatment Plant--Note G Propertyj plant and equipment-- NOtes A and H Amonnt available in Debt Service Fund Amount to be provided for retiremenn of general long- TOTAL ASSETS 441,966 $ $ ~ 5,001 381,384 2,106,809 2,249,229 9,582,417 452,353 138,680 138,680) 365,684 53,267 112,667 7,300 408,007 299~571 125,356 51,238 -2- FiduCiary Internal Trust and Serv%ce $( General TOtal Fixed Assets Long-Term (Memorandum Debt ~ 102)~ 10,000 ~ 143,676 27s413'178 1'255s926 485,053 29,018,365 3,028,075 304,131 1,594,332 60Q,541 ~3',473,996 29,470,748 3,028,075 30~4, t31 1,594,332 251,347 16,354 1,798 2,923 ( 138,680) 423,672 303,360 2,340 50 23:654 713,757 4,977 55~105 299,571 55,017 9,118,727 60,395 ' 125,356 111,320 424j323 1t5,412 9 10,931,865 ,118,727 42~4,323 59,045,517 1,939,675 10,93t,865 30,723,187 91,708,379 2,361,39t 2,36~,391 28 983 67~ 28~983 671 COntinued on next page. COMBINED BALANCE SHEET--ALL FUND TYPES AND AccouNT GROUPS--CONTINUED CITY OF BoYNTON BEACH, FLORIDA September 30, 1989 Special Debt De.fi'~t in'pooled AccoUnts payable ACcrued p~y~oll and payroll liabilities E~c~wdep0s%ts R~dabi~ aeposttS ez o~ayables O~h ~ A and I . ~ ~.:- ~:~*~r funds--Notes ~ne~ ....... s--Note K ReVAlue --- ble from restricted assets ~ims payable--Note S absences payable--NoteS A and M appreciation bond intereSt bonds payable--Note L payable, net of current maturities .zed discoUnt--Notes A andM ettlement payable--Note U ToTAL LIABILITIES 277,080 37,184 96,638 356 19,681 139,497 ~15 85~ 40B,607 338,948 237,856 1,409,233 465,228 5O5 5O5 ~ A H ined earnings--NoteS A and Q Retai ~ - ~ond debt service ~served for revenU~ ~ ReserVed for capital improvements Reserved for renewal and replacement Unreserved 51,238 d balance--Note A F~,~.~ i m ~or orepaid expenses . _~o 125,356 -,~d f r long-~ .... 2,361,39 Reserveu ~ -:ce 97,693 Reserved for debt servx R~se~Ved for donatiOnS ' ~e~er~ed for retirement benefits and employees e~ont~ibutions~-N°te J 602,865 u~e~e~ved 1 09~ 98~ ~ Designated for specific purposes and projeCts 346,299 undesignated TOTAL FUND EQUITY- ~-1 69~ 848 TOTAL LIABILITIES FUND EQuIT Capital Projects Fiduciary Proprietary Fund Types ~und Types Internal Trust and Enterprise Service Agency Account Groups General General Total Fixed Long-Term (Memorandum Assets Debt Only) 424,582 ~ $ 2,089 1,115,~66 1,100,849 52,056 ~ ' /'~76 32,021 2,272 340,278 5,229 399,505 3,540,152 663,850 891,437 20,480,784 6,303 2,390 3,028,075 391,244 31,381 1,540,624 27,450,105 479,042 3,036,768 53,446,774 137,222 2,544,567 87,110 2,946,838 22,432,094 2,708,975 30,723,187 2,550,062 20,795,000 8,000,000 31,345,062 426,671 2,589,543 19,~81 479,775 "25,854 7134757 3,028-~975 338,948 239,O85 399,505 3,540,152 391,~4~ 3~2~293 S i;437 2o,7 ,ooo 20,_~0.,784 8~000~000 65~7~567 30~723,187 53,583,996 2,544,567 87,170 2,946,838 25,14~,069 51,238 125,356 43,387 2,361,391 97,693 8~506,477 8,506,477 81,457~443 2,846,197 27,726,346 27,726,346 483,313 9,938,954 1,735,84~ 2,827,82~ 29,945,505 30,723,187 158,199,021 l~L~Q~047.101 $108.907.548 $3.325 23R ~32.982.273 $30.723.181 ~ ~ See noEes co financial stanements. COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND ~BALANCE--ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS CITY OF BOYNTON BEACH, FLORIDA Year Ende~ Septem~r~Q',/198?' Revenue--Notes A and B 7TRies~ :~i~ses and permits ~. i.~t ergovernment al iht~st :i~g~S for services ,~i~es and forfeitures j n~i~6pers ' contributions EMme~itures--Notes A and B ~C~r~f~nt ' ~ ~: ~e~ral g0ver~ent ~ Phbllc safety ~ub%i c works Culture and recreation D-e~t service Principal retirement ~erest and fiscal charges--Note P Bond issue costs TOTAL REVENUE TOTAL EXPENDITURES REVENUE OVER (UNDER) EXPENDITURES O~the~.financing sources (uses) Operating transfers in 0pe~attng transfers out Bond proceeds REVENUE AND OTHER SOURCES O~ER (UNDER) EXPENDITURES AND OTHER USES Fund balance, October 1, 1988 FUND BALANCE, SEPTEMBER 30, 1989 General 214i494i641 1,823,001 4,590,653 438,590 333,433 55,520 421,077 22,156,915 5,837,283 12,770,084 845,123 3,538,949 1,073,095 769,365 24,833,899 ( 2,676,984) ( 1,028,037) '~ ~.~i~9,237 ( 1,467,747) 2,131,720 $ ~ 663.97~ -6- Governmental Fund Tvpe -SpeCial Debt Capital ~Revenue Service Projects :~- 825,110 * i~955,493 ~ -6J4,332 iS~f t22,318~ _ 153,273--i: 1,¢64,395 .~ 28,000 2,108,7662'~ ~ 1,748,727 Fiductar~ F~ Total Expendable (Memorandum Trust 0nlv) 175,007 106,565 32,544 21,029 250 335,395 %7,959,57-6 1,823,001 4,590,65~ 1,953,583 ~ - 439,998 88,064 427,186 27,331,Q90 327,24>3: 64,622 1,505 4,127,736 % 1,545,018 467,287 . 1,543,499 555,000 1,423,673 391,865 1,980,178 589,422 128,588 13,449 9,979,973 442 14,315,544 1,312,410 5,082,448 1,400,338 833,987 55'5,000 1~423,673 57,66% 57,661 7,741,201 13,891 ~4,961,034 ( 5,992~474) 321,504 ( 7,629,944) 791,~89 . !~690 2,381,194 5¢586,647 560,661) '( 3.,237,771) ( 45,000) ( 4,871,469) 2,371,90~ 2,371,905 230,828 176,690 1,515,328 ( 45','OOD) 3,087,083 820,250 305,278 ( 4,477~146) 276,504 ( 4~542,861) 874,598 2,056,113 12,983,623 $ 1.694.'848 ~ 2.361.391 $ 8.506.477 1,942,655 19,988,709 ~_Z.219.159 $ 15.4~5~8~8 See no=es ~o financial statements. -7- COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES tN FUND BAI~NCE-- BUDGET AND ACTUAL--GENERAL FUND AND OTHER GOVER~MENTALFuND TYPES FOR WHICH ANNUAL BUDGETS HAVE BEEN LEGALLYADOPTED CITY OF BOYNTON BEACH, FLORIDA Year Ended September 30, 1989 Revenue--NoEes~ ~a~ B Taxes {,- ,~,: ~ Licenses Interest ~'~ FCh&rges f~r-~e~ices ine~an~ {e~f~{tures Miscellan~?c{~ Grant revenue TOTAL REVENUE Expenditures--Notes~A and General gove~wnnent Public safety Public works~ Culture an~ecreation Special pro~ects Debt service Principal retirement Interest]and fiscal TOTAL EXPENDITURES REVENUE OVER (UNDER) EXPENDITURES Other financing sources (uses) Operating transfers in Operating transfers out RSVENUE AND OTHER SOURCES OVER ~ General Fund ~ ~V~riance '~ ~ Fayor~ble Actual 376 278,989 78,1~0 2,750 21,928~868 5~972,195 12,987,445 :~,914,866 3,865,770 333,433 5 ~33,295 435,380 21,985,22'2 56,354 6,173,605 ( 201,410) 12,775,617 211,828 846,292 68,574 3,703,~5~ 162..314 431,9~ (431,931) '~ 23,740,276 23 930 901 . (190.625) ( 1,811,408) ( 1,945,679) (134,271) 1,913,000 1,913,000 .... 672,148~)~' (· 1.028,~3~) i'i (355,889) 1 2~Q~40852 884.96~ ~ (355,889) (UNDER) EXPENDITURES AND ~ ~ . _ 0THOR USES--BUDGETARY BASIS $( 570.556) ( 1,060,716) ~¢ 490.160) Fund balance, October 1, 1988 2,131,720 Net differences between GAAP and budgetary basis-~Note B ~ , · ( - 407,031) $ 663.973 FUND BALANCE, SEPTEMBER 30, 1989 -8- Special Revenue Fund Types Local Option Gas Tax Fund, Special T~xi~e~_vy -~Publlclty FuNd and Community Redevelopment Fund Variance Favorable Budget Actual (Unfavorable) $ 3865,139~i$ 825,110~ ~$(~~ 40,029) 31,=670 54,220:~ ~ 22,550 Debt Service Fund Types Recreational and Municipal Beach Debt Service Fund and Building Improvement Debt Service Fund Variance Favorable Budget Actual (Unfavorable) $ 803,020 ~ 799,185 5( 3,835) 25,500 41,003 15~503 2,000 5,859 3,859 898,'809 ~ 885,189 ~ 7'('~ 13,620) 828,520 840,188 11,668 1,090~894 294,410' 796,484 1,090~894 294,410 796,484 ( 192,085) 590,779 782,864 215,000 215,000 613,520 613,020 828,520 828,020 12,168 5OO 5OO 12,168 355,283 791,489 436,206 560,0~0) f 560,661) ( 661) 204,7~7) 230,828 435,545 .~( 396.802) 821,607 121,~35 12,1~8 ~12.L6~ 367,568 ( 22,046) $- 9_~.896 See nones to financial statements. Continued on next page. -9- $ ~79.736 COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE-- BUDGET AND ACTUAL--GENERAL FUND AND OTHER GOVERNHENTAL FUND TYPES FOR WHICH ANNUAL BUDGETS HAVE BEEN LEGALLY ADOPTED--CONTINUED CITY OF BOYNTON BEACH, FLORIDA Year Ended September 30, Revenue--Notes A and B Tax~s · _ Ltc~nse~ and permits Intergovernmental Inter~s~:~ Cha~ge~ 'for services Fines and forfeitures Rents and royalties Miscellaneous Grant revenue 1989 - ~Total= (Mem~rand,um~ Favorable Budaet Actual TOTAL REVENUE Expenditures--Notes A and B General government Public safety Public works Culture and recreation Special projects Debt service Principal retirement Interest and fiscal TOTAL EXPENDITURES REVENUE OVER (UNDER) EXPENDITURES Other financing sources (uses) Operating transfers in Operating transfers out REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES--BUDGETARY BASIS Fund balance, October-l, 1988 Net differences between GAAP and budgetary basis--Note B FUND BALANCE, SEPTEMBER 30, 1989 '$16,142~Y30[~ !1.6,118,93.6~A$( 23~794) 2~I58,250 1~823,001 ( ~35~2~9) 4,483,638 4,155,273 ( ~Z8~365)' 433,670C 533,~15 !00~143 278,989 333,433 54,44~' 78,100 55~520 ( 22;580) 16,470 16~:086 ( 61,600- 239~5~ 177,557 2~50 435".;~80 432,630 23,~$6],i~- 23,7~,!~9~ 54,402 5,972,195 6,173,605 ( 201,410) 12,987,445 12,775~617 211,828 914,866 846,292 68,574 3,865,770 3,703,456 162,314 1,090,894 726~4~1 364,553 215,000 215,000 613.520 613,020 500 25.659.690= 25.053,3~t . 606,359 ( 2,003,493) (1,342~32) 660,761 2,268,233 2,704,~89 436,206 t.232.148' 1.58~8',6;98 ~ 356,550 1,036,135 .1,115,~91. 79,656 226,941) 2,620,623 _(. 429,077) $ 1.964.605 See notes to financial statements. -10- COMBINED STATEMENT OF REVENUE, EXPENSESAND CF~ANGES IN RETAINED EARNINGS/FUND BALANCE--PROPRIETARY FIEND 'TYPES AND PENSION TRUST FUNDS CITY OF BOYNTON BEACH, FLORIDA Year Ended September 30, 1989 0Derating revenue Charges for services Contributions Intergovernmental Investment income Operating expenses Operating expenses Depreciation and amortiza- tion--Note A Benefit payments Refunds OPERATING INCOME (LOSS) Nonoperating revenue (expenses) Interest income Miscellaneous income Interest axpense--Note~P Fiscal agent's fees INCOME (LOSS) BEFORE OPERATING TRANSFERS Operating transfers in (out) Operating transfers in Operating transfers out NET INCOME Transfer of depreciation on contributed capital--Note A Retained earnings/fund balance, October 1, 1988 RETAINED EARNINGS/FUND BALANCE, SEPTEMBER 30, 1989 Proprietary Fund Types Internal Enterprise Service Fiduciary Fund Type Total Pension (Memorandum Trust Only) 17,734,909 18,750 17,753,659 1,435,767 ~ , ~. 19,17'0,676 2.744,535 2,744~535 366,108 384,858 2,500,515 2~500.515 1~435,767 r 5';611~158 24~800,584 12,297,409 2,g05,944 1,529,186 126,236 13,952,831 643,195 ~ 3,449,139 858,461 858,461 123,741 123,741 15.103.353 2.172,381 2,650,306 ( 736,614) 1.10814~8~ 18.384',t72 4,50Z~720'~ 3,224,117 39,202 3,2~3~319 189,752 26,050 8,304 -2;24,t06 1,862,000) ( t~S62~,000) 5.854) ( 5,854) 1.546.015 65,252 8,304 1,619,571 4,196,321 ( 671,362) 4,511,024 8~,035~,983 105,108 1,408,185 2.083.050) ( 145~421) 1,977,942) 1,262,764 2,218,379 591,402 a,511,024 1,513~293 2,22~471) 715.178) 7,320,805 1,061,432 74,294 24,730,858 2,043,279 23,215,322 28-010.669 $ 2.708.97,5 1 ,t35,726 49,989,459 58.445.990 See nones to financial statements. -11- COMBINED STATEMENT OF CHANGES IN FINANCIAL PROPRIETARY FUND TYPES AND PENSION TRUST~FUNDS CITY OF BOYNTON BEACH, FLORIDA Year Ended September 30, 1989 Proprietary Fund Types Internal Enterprise Service soURcE OF FUNDs Net income $ 2,218,S79 ~ Expenses .not'requiring current ..... l~Ldut~y of work%rig Capital ~/~D~preeiationand:amortiza- ~%i,~f0n .~ 2,74~,¢~9 643,195 %3~ Accretion of~dis~ount on capital appreciation b~nds Amortization~ of, debt issue e~penses and bond · ~iscount ~- QORKING' ~API:TAL PROVIDED BY OPERATIONS In'cr~ in 6o~pe~sated absences payable Increase im current liabili- ties payable from restricted Net' hpok value~,~f assets APPLICATION OF ~S ~Ca~i~a'i lease obligation payable ~p~sabed absences payable Y/~v~tment in Regional Wastewa~er Treatment Plant Prg~er~ty, plan[ and equip- Res~c~ct ed assets Decrease in long-term debt Fiduciary Fund Type Total Pension (Memorandum Trust Only) 591,402 $ 4,511~0~4~,$ f~$20~805 ~ ~5,39~ 405 261,226 ,~ 2~1,226 58~73~ ~ . 58,734 5,2~5,549 1,234,597 4,511~024 ~1,~31~170 5~494,011 17~242 5~511,253 44,984 4,221 49,205 571,~151 571,151 132 21,096 '21,228 11,395,827 1,277~t56 17,912. ~9,107 5!4,124 INCREASE IN WORKING CAPITAL 8,640,742 1,120,751 59!,201 1,005,000 10,800,174 1,138,663 $ 595.6~ $ 4,.51.1,024 &7,184,007 17,912 ~4.9,107 514,124 9,~61,493 591,201 1,005,000 ~1,938,837 138.493 $ 4.511.02~ $ 5.245.170 Continued on nexn page. -12- COMBINED STATEMXNT OF CHANGES IN FINANCIAL POSITION-- PROPRIETARY FUND TYPE AND PENSION TRUST FUNDS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA Year Ended September 30, 1989 CHANGES.v~N~0MPONENTS 9FWORKING.- CAPITAL ~.3..' - ,. ~.~. Increase (decrgase) in currentassets Equity_in pmo~led cash an~inves~men~s I~es~me~t~ Interest receivable Accounts and notes Increase (decrease) n- ' current liabilities Deficit in pooled cash and investments Acco~tspa~abla. ,payroll liabilities Insurance claims payable Refundable deposits Due .to ~ther~unds kev~nue coii~6t~d in advance Contracts payable 'L ' -~' Fiduciary . ProDnietar~ Fund Tvp~s n FundType - To,al ~ -' Internal Pension _ ~ _(Memorandum .~ . ~?~ ~ .~ EnterDrise~..~ Service., ~ .~ Trust~ ,~ . , ~( 389,998)$?I~.~3~5~1 ~( ~ 3~.6,467) 932,672 :586!~35~ · -:, 0748 ..4~3~6~250- - :~,386~250 ~91~157 300:,g07 2,i06] 50 12~,5!1) 21~4~87 5~222) 52,623-. 1,636,263 272,575 4,511,646 zlf292 302,863 ~8,976 47,401 6,420,484 2,089 2,089 644,871 (. ; 55,585) 572 589,858 ( 9.8-99) 284 '- ( =.' 9,615) 187,294 187,294 75,532 75,532 · 50 . 50 ~ 69,.399) ~'- ' ( -' -69,399) 399,505 399,505 1 040 ~10 134,082 622 1,175,314 . INCREASE IN WORK!!~G GABIT%L .~ .595:,65a ,~ ~ ~-:; 5.2~5.170 See notes to fiuancial statements. -13- NOTES TO FINANCIAL STATEMENTS CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE A--SIGNIFICANT ACCOUNTING POLICIES Reporting Enttty:-..:TH~e City Beach is a political subdivision of the State ~fmunic~ipalservices including public safety, and streets, recreation and park facilities. admin tion functions. the ~f There- ,ity s Disposal Boynton Be~ekTana' ~]~r~B~ach to Board ~%~g~%hg~9~y~'~s com- 1~ Board has!~hee~¥ r~p~-rt~ as a ~as discussed i~ No'te'~'~% '~ Governmental Funds ~Ge~eral F~nd--This fun~i~is,used~to~ acdo~nted for' in anotke~ fund. - ~taXes,~' s~ate and fedef,~ dis revenue. Special R~venue Funds--These funds~, are ~sed to mental revenue (other than special,assessMents / quir~ng s~parate accounting beca~s,e<~f legal ~dministrative action account and ma~o~ or regul~ ~e~t Service Funds--These funds are used to record the funding and paym~eDt of ~ingip~l ~n~ ~n~re~st 0~t debt ~ repo~t~'~t~, ~he General Lon~Term Debt ~connt Group. Capital Project Funds--These funds are used to account for the acquisition or construction of major capital facilities other than ~hose~ftnanced by propri- etary fund operations and special assessments. NOTES TO FINANCIAL STATEPIENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE A--SIGNIFICANT ACCOUNTING POLIC~ES~r~0NTINUED Proprietary Funds ..... T ese f~nds-are nsed te~account for operations ~that prowide Enterprise Funds-~ h · ' · e s- fi~anee~prxmar~f~ % a servi~e to ct~ n ,. ~ public policy) mauagement =o~trol~; Internal Service Funds--These funds are used to account for the financing of =.~gencie'm of the G£~y,.-o~ ' .., ...... ~e-.,a~uisi,tion, opemati=on~and~' basis. The ~ehicte &e~vic~e F~an~ :'~CCOun-~a :zo.~. ~, ~: ~-~ · ~-me-t~ ~The Self · f the City's ~fle~t. maint~na~ce.;~ ~ - ~ ~ ~-~2 e~mn ~ {tio~~ insurance ~or the Ci y..' '~' - disbursement of supplies. Fiduct&r_y Funds , ' - ' ' These funds, used to account for assets held in trust for others, pension ~z~st .~und~ expendable ~tr~st .funds~ and :-ani;~agene~ fund. Account Groups include the Gro~p~Th,~s accoun~ g~o~p presents'_ th~ f~xed its general operationsv(nonp~oprie~ary -fixed General ~ixed Assets Account assets of the City utilized in assets). General Long-Term ~ebtAecoun~group--Thts account gro~p- i:s~.use~:to accoLmt for the outstanding principal balances-of;generat,zobligation%onds.. ~ .. and lim~ed obligation bonds~ and certificates not accounted for in proprietary funds. Bases of AccountinK: Th~ ~ccrual~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 ineurre~.~ ~Unb~:lled ~a~er and SeweT F~nd utility ~ch~rges are not recorded at year end as meter readings are performed on a cycli~calhbasis throughout the month, and unbtlled usage is not determinable until readings have been recorded. ~ - All other funds are accounted for using the modified-accrual basis of accounting where revenue is recognized when it becomes measurable and available. Expenditures are gen- erally recognized un~er the modified-aecru~ basi,s w~e~he re~ated fund liability ~s incurred, ~xcepg for principal and ineerest on gDnera~ tong=~erm debt ~hich is-recog- nized when due. ~ -15- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE A--SIGNIFICANT ACCOUNTING POLICt~,$~CONTI~,~iX/ ~ ,, . Me_a..sure~ment Foc~l~_: The accounting and reporting 'treatmen~ accoun~te~_ fo~*~om ~C~ne~: .... ~ , ~, :~,~ ~. d expendable trust f~ds are only cu~-~ · as ~ . . ~ ~ measurement ~fdcus. ~s me , ~ ,~etS a~ c~:r~eR ~1~ . ~ ~ ~ ~ ~ . ~ . ~s that Ali: the 1. 2e Prior t -~.: o Auguat-l:,; tire budget pnbl~c ~ this time. ~a~ozma~budget~[~shops a~ heZa b~fie~C}ty ~eommts~ion ~0 =evi~wt~,:pr~ 4., z~i.~al'The publiCbud et~hearing, is:held to obta:tn final taxpayer input and to adopt the . ~ 6. For budgetary purposes, current yd ar e~cumbrances are treated as expendi-- end.tures .and: any un~eum~.ered~: ; . budgetary, ~ abprop~tations.. ~, . lapse a~ 'fiscal_ year · . Qh~g~s or am~ndme~t~:z~: 't~ total :bu~ted~eipend~t~ces f Ehe C - . ~,. ~u ~ rne ~y '¢o~iss'i0n~ ho~v~r,'cha~ges:within a department which ~o not aCfect th~ department's total ex en ' approved at the a~mtnist~:P~-~ · ~ -. . P dltur~s may be budgeted expend, truths or h,,~o~ ~ L ~ ~ amendments to total -~=~ uepartmenta~ expenditures. 8. Unencumbered and unexpended appropri~ations lapse at fiscal year end~ -16- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE A--SIGNIFICANT ACCOUNTING POLICtES--CONTISV3ED The~reported budgetary ~data represents the final appropriated budget after amendments adopted by the Glty commtsston~. Jkpp,roprtated be:dgets have, been. legally ~dopted for the General Fund, Local Option Gas Ta~'.~Fund,. Spiecial~Tax Levy - Publicity Fund, Com- munity Redevelopment Fund (special revenue funds), Recreational and Municipal Beack Debt ~Service .Fumd~sald,~the ~nilding~Improvement Debt:Se~vice~-Fu~:(de~tservtc~funds) on the same modified-accrual basis used to reflect actual ~everzue' and expenditures,. except that for budgetary purposes, current year encumbrances are treated as expendi- t~res~. Th~ ori~t~ai budge~s~,fo~ these~ fu~ s~e .as~ pr~s~e~t~d: .~9~t~ .~T~r~.wer~/~o a~endmentsto~.~he budg~t~tn ~o~1 during ithe~ar=-~Howev~,'i~he~e~-- ~are changes Within a~given department%~ A*~o~appropriate~ budget~ iS~p~epa~$d!=for%~k~ Wat~'.~nd Sewer Fund,~Bo~inton~Beach Recreational Facilities Fund. Sanitation Full'and V~t~e~ Serv~ceFund. ~,The~ opeca- riots of the Reserve for Parks a~d~ Recreation Facilities Fund (a special revenue fp$~), the Publi~S~r¥ice ~axD~t~,8~ervice ~d~, tka~eDreation~l~l, and Municipal=Beach ~mp~ovement Fund~apital~D~,~c~.~,fund)~L~d ~t~! f~dn¢~&ry,~und types%are nonb~d~ g~ted financial actLvities. Engumbrances. Encumbrance aecoum~ng, under whick p~rchase orders ~cD~tracts and other commitments for the expenditure of funds are recorded in o'rder to reserve that system in the general, special se~enne and Dapita~ p~c~fUmds.i ~he City-re~ords enczunbrances as an appropriation of fund balance-until expende~ or accrued as a lia- bility of the fund~. Equity in Pooled Gas~and Investments: Equity in pooi~caskandlinvestments consists of cash and investments in U. B. Government securities held under repurchase agree- ments and the loea~government ppoled in~e~tment~aceoun~o,adrministered by the State Board of Administration. Cash balances and requirements of all funds are considered in determining the amount to be invested. Interest earned on pooled cash and invest- ments is allocated ~9 funds based.~on~the~a~era~e~.d~il~.qesk~ ~tances. The City maintains a ~500,O0e compensating balance un~r the banking~er~lce~ agreement for the pooled cash and inve~stments account. Investments: For.~a~l .funds except the pension trust~unds, i~vestments'constst of U. S. Government ~e~nrtttes and ~ttme depos!ts~ Inve~tn~e~ts of the pension trust funds consist of money~ ~et funds, mutual funds, U. S~. Gevernment securities, corporate bonds and common stecks. U. S. Government securities are reported at cost, nee of unamortized premium and discount, which apprpximates ma~rket value Ail other invest- ments are ~eported ~t cost. Purzhases and .sales of inves~tments are recorded on the trade dates. Net r~alized gains and losses on sales of investments are reflected in current operat~ing r~e~ults as investment ea-rnings~. ~The dcfeEred compensation deposits represent the a~se~l ~°f the deferre< compensation. . plan whic~ are keld by an insurance company and are inve~sted in insurance contra~s that &re. r.cported at market value. -17- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE A--SIGNIFICANT ACCOUNTING POLICIES-~CONTINUED~ ', Prepaid~Expenses:' :~Expendi~tures for · i~surance premiums and~ other~: administrative expenses~ ~tending over~ more~tha~l one accounting, period are-accounted for ,as prepaid expenses and~allocated between accoun-tihg, periods. - ' ~ · ' Ch~ ca of market 1 and Depreciation capital. Retained EarninRs~Reser~es: for the followi~g:~. Equipment 5 - 12 years Buildings and other improvements 10 - 40 year~s~ ~Water/sewer~ sys~tem 15~ 50~ charges'~elated tO~ contributed capital :a~e tran~fe~ad Retained earnings to. contributed of the enterprise 'funds 'a~e reserved Revenue Bond Debt Service--Retained earnings of the Water and Sewer Fund and BQyntom Be~ch,Re~reational~Factti~tes Fund reserved for revenu~ ~offd~debt service ~represent the /e~cess bf res.tricked assets 'required 'for~ deb~ ~lce under bond covenants:over the rela.t~d..~iabilities payable from restrtct~dl Capital Improvements-~Retained e~rnings of the Water and Sewer Fund are reserved for capital improvements as set forth by the rela~ted bond indenture. Renewal and Rep~acement~Retained earnings of the Water and S~wer Fund and the B~ynton Beach Recreational Fac~ilities Fund reserved for renewsi'~d replacement over the related liabilities payable from restricted assets. -18- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE A--SIGNIFICANT ACCOUNTING POLICIE~COB~INUED Fund. Balance Reserves: Fund balance ~e~erves signify tha-t a portion of the fund bal- ance is not to be ~qDnsidened,~as ~ayatlable,.fer subsequent egpe~dtture other than for the specific p~rpose for which t~e resemve was established. The following is a list of the reserves~gsed by. th~.CStM~and-a description o$ each: Reserved for ~repaid E,pen~es-~An account used to segr~ga.te a portion o,f fund bal- ance to indicate~?th&~ repaid: ~x enses do ~not~: represent available . spendable resources ev~ though t~ey are a eompon~t of assets. Reserved for ~ong~T~:~e ~eg~Fa~er~iac~P~t ~sed ~to, segregate ~ portion of fund balanc~ to :~di~ate that t~e.~ote receivable does, not represent available, spendable .reso~rce~ even, though i~ is:a c~nent .of asse~s. Reserved for Enc~brances--~ account used ~o s~reg~te ~ portion of fund balance for expenditure ~?,ye~pr.. ~rf~e ~:~omp!et~ purchase,eTde~s, co~tracts and other ce~i~ts,~ , : : ,~ . Reserved fo~ Debt Se~tce--~ accost used t~ seg%~gate the,~p~rtion of f~d hal+ ance that ts legally restricted to ~he pa~ent of debt service on the City's out- standt~ gemeza! ,9bl!ga~ion bomd~. ~ ~:~ ~ ~ Reserved for Do~at~o~s~-~ ac~ ~sed ~o seg~e~a~e the portio~ of fund balance that ts legally restmicted by contract. .~ R~s~[ved~fo~:get%~eM~t~enef%t,~,si~nd~Emp$oYe~',~o~tribu~ions~tAnaccount used to indi~at~ t~t ~th~ fund balan~a~:,uf the ~Ctty~s.~ pension~ trus,t funds: is legally restricted ~o ~h~-paY~ent ~f ~e~lg~s for city ~mpl~ees.-- ' These resermes signif~5~ ~ha,t a p~ortton, of the fund. =balance. of. these funds is not to be considere~ &s avail~,l~ 'fo~ subSeqUent gxpenditu,re~the~' th~n for th~ spectf.tc ~urpose of which the'r.ea~r~ wa~ e~tabit~d~' ~ ~ ~ DesiKnated Fund Bail'ce: F~d bai~ce designations indicate tentative managerial plans or intent to use financial resources In a future period. Unde~f'~nat ed ndesiK~ated F~d B~i~ce: fund ,bala~c~ indicates that portio~ of f~d alanae 'which is ~'~'le for ~e u~e. ~ Revenue ecognttton: A~ Valo.rem ~Taxes~Ad va~prRm taxes_are assessed as of January 1~ and levied the following O~ober', They are, du'e March 31 and become deiinQuent and subject to lien on April 1. ~hese taxes are. collected by Palm ,Beach County and remitted to the City. Revenug, is recognized at the time monies are received from Palm Beach County. At S%ptemSer 30, Unpaid deiinquent taxes are re,flected as a receivable on the balance sheet and are offset by an allowance for estimated uncotlectibility. -19- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE A--SIGNIFICANT ACCOUNTING POLICI~S'~coNTINU~ ~ f?/~ ~ Other ~material revenue-which ts SUS6eptibie to~deru~l .ilnclud~s~.u~iliti~s-taxes franhhise~t:axes, tntere~t income, s~tere~enue~sharing an~igar-~agA/t~ash Collec- · ~ion income. Revenu~ which is no~~ both ~a~itable~ a~m~as~ble'~md~ is khns n~ susceptible to accrual ine~ p~o~~&n~t~6~al ~iI~e~§~~wz~ ~?' Grants: ~%de~at ble~a~d~cev c ' Amortization using the ~ Interfund Transactions ~ransactions made during the year ~nd must be These the other financ~nk ~-~ Quasi-External Transac and expenditures ~to the o~he~w~S~ ~e~eC~rd~d organizations external to the City. would 9ith Reimbursements-r~nese are t~ran~acti~ ~fO~- servf~eb. vided. Th~se'trans~io~ r~c~ed ~ ~v~de~' expenditures in the disbursing fUhd.i' ? J,~ :~'~'' ? [ittes pro- fund and CompensatetAbsemces~ -~Emplbyees e~rn ? day :of v~c.~ti'0~ leave' pe~ mont~'during ~heir first 'year-~f'.emp~0Yment. and, /b~s~d' 6~ ~aJ's'fi~in~~ ~i~:~u~P~ Ro~: 2~:va~&at1B~ days ann%- ally after 21 year~ of service. Employees may ac~ngl~t~' e~r~e~ V~c~lt%Rel~a~e up to a maximum of two years. Vacation leave accrued in excess of this ~imitation is lost if not taken. . Employees earn one day of sick leave per month and may accumulate al~ earned sick leave 'without limit. Upo~ ret-ire~en~":'d~a~h Of ~rmt~&~tton, ~ye~-ai~e: compensated for all accrued vacation leave and one-half o~ acdtlmul~ted sick'leave at ~heir current rate of pay. Except for liabilities incurred by retirement, death or termination, compensated absence benefits are paid only when taken. ? -~ ~ In the governmental funds, the amount of compengated absences recorded'as e~penditures is.the.amount accrued, durihg the year:that is expected to be liqu~d~t~d with expenda- ble; ~=ailable'flnRnciaf resources. The remaining liability' is'~corded 31n ~he Gen- eral Long-Term Debt Account Group. Gompen§afed absences -for the p~oprietary funds are accruedz in the period eAbned. -20- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE A__SiGNIFICANT~ACCOUNTING~ _ !, ~ · POLICI~S--CONTINUED· M~m~ra~__~ ~dum ~0~¥ Columns. ..... - ' ~ ~ ' ~ ~u~ ~reDresent~ consol_ ~ ,-~- ~'r.,:~ ~ ....... --~ These .tota~ c~iumns informa~i~ PUrposes u~ .... . cial.sta~ements- : -.' ~ preparing as ertl ofL fo] as Revenue-T . Re~'~ ~ve~d/de~igna.t ~d r even¢:~ Nonbudgetea 'fun~S .~ balance expe~diture~ Prior year encumbrances paid in the current year ( 20,552) Current ~ear. enc.umbr~nces outstanding at year- end EXPENDITURES-- BUDGE~ARYBASIS ~23.,930.9Q1 Net differences"between GAAP and budgetary-basi~ 'Revenue .~ . ] ~ ~7t,693' Less'nonbu~g~ted fu~s .... ~7~,6~93 .~ Speci~t Gener~ Fund -" Funds ( ( 22,046) (:75~409) 294.410 ~ . 96~,D98 96~098 Operating t~ansfer ,to·'reserve Expenditures Less nonbudgeted funds 324,274 902,998 97,455 75,409 902,99~ 22,046 NET DIFFERENCES ~( 407,__/Ltl) ~L(=L~) -21- NOTES TO FINANCIAL STATEMENTS_.CONTiNUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 Played On the C6mb~ned balance Shei '~Oefi~it in Pq~t of ~ of the pro~ f a a est ated in °bli~a~t~ns qf the federal Y blty Ordinance ~-- investments s of the State n~ p~%%~slOn trust fnn~ may also be ~ .... ~ · pectf y of its oli ' , ~'~, , - ~a~es P tlcal subdi~,~i~ns ~fef stocks of certain U. S. corporations, mutual funds ~n~ 'd~bt securities o~ ~rtatn The ,C!~,s investments Dre categorized on page 23 to gi~e an indication of the level of ~k assume~?~ ~ ~y at year end. Category 1 includes investments tkat are -22- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BoYNTON BEACH, FLORIDA September 30, 1989 NOTE C--EQUITY IN POOLED CASH AND INVESTMENTS, kND CASH ~ iNVESTMENTS--CONTINUED: : reg's~ere~,x ~ ~ or for which the securities are held by the City investments or its agent for nsured and unregistered insured or , o 2 tnclude.~ ~ni it's name. 4~ the City s name. Cat ~eg ~ ~.- ~-~ ~ ..... ~ or anent in the C Y e held by ~,a. ~!~st p e securities which the ~S~urtt~es ~ ~t~.. :~--:~:~,x~e'~red investme~ ~. ~i~ ~ ~.~ ~.~ ~ held ~b~ a broker or?aea~.,? ~-. ~ _ ~ City's n~e. 'nC ~ Poole~cash- and~.inves ...... Investment in S~e CaSh - TOTAL POOLED CASH AND INVESTMENTS 475,000 _Market.ValuE 475,000 49,~6,047 _( 85,82~)_( 85,8~7) 49,~415,~22~0-'49,'415,220 Money market fund U. S. Goverrm~ent s'ecur{ties Corporate b6nds Common stocks Mutual funds Certificates of &eposit $ ~ 5,951,719 5,95t,7t9 5,951,719 946,376 6,664,166 7,6i~,542 7,570,887 '7,570,~87 7,03~,44~ __ 500,000 6,538,446 100,100 7,717,808 7,544,~81 9,138,530 30,352,538 100,100 3,6~514 ~636,514 TOTAL IN~fESTMENTS --3~,90S,208 . 34,089,152 Deferred compensation deposits TOTALS 3 0~Q~_28,07~ 3,028,075~ -23- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE C--EQUITY. ...... IN POOLED:~_: -CASH-~7 AND INVESTMENTS~ AND CASH AND INVESTMENTS--CONTINUED Thefol:loM~:above~ amounts~ include unrestricted and restricted assets· · ' which are "'reconciled as t Investments ~nd Cash Deferred compensation deposits Interest receivable DUe~r°m~eg~o$~al Board TOTALS NOTE D--ACCOUNTS RECEIVABLE The accounts receivable and allowance for doubtful accounts at September~ _ 30,. i9~O~are, as follows: Gross receivables Less alldwanc~ for doubtful' accounts NOTE E--DUE FROM OTHER G0~ERNMENTS Amounts due from other governments at September 30, Due from Palm Beach County for ~ommuni~y Development Block grants E~ergenc~Me~tdal Service-grant School Crossing Guard D6e from Stat~ ~f Florida for Human Relations Gran.t 2~ gas tax 1/2~ sales tax 426,67] ~3~0~7~2~ ~6,367,895 49,415,220 2'9.4~0,748 2.437,460~ ~ 3~%~98~208~ 72~5ta:,:073 8,805,3~ ~i;3~5;~28~ . ~ 236~55] ~ 76.~L6.689 ~ 9.1~8~727 ~ 85.265~6 for the enterp~!s~:~f, unds NET RECEIVABLES ~~ 1989 consist of the following: $ 110:,925 9,728 2,66Q 123,313 7,854 11,860 156,544 176,25~ -24- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 Enterprise funds Water and Sewer Fund Equity in pooled cash and inv.estments Investments Interest receiv~bIe Due from Regional Board NOTE F--RESTRICTED ASSETS In ~eonneetton with ~ ~ . t~ '~amo%ints ~or --u-'~ ~. ~ ~ ~s required Go Invest and restrict certa a~-. The City is'Rlso =equired to ~egr~te and.~ res~r~C~ta~% ~m~.~e~ac.e~ent(/of the R~gt~nal W~lag~ Bond GaP~tal~ ]~ ~ustomer~ R~n~wa~6%d Requirements I_~provements ~ ReDiacement Total $3,444,166 ~716,907 $1,153,267 ~ 674,t2~ ~5,g88,467 87~170 1,859,339 1,946,509 76,821 76~821 3,444,166 804,077 236_~55.! 236,55! 1,153,267 Z~8~6,838 -~,248,348 Boynton Beach Recreav tional Facilities F~d Equit~ in pooled cash and invest- 100,O00 379,428 ments 279,428 _ 490,95% ~90,951 . 100,000 870,379 Investments 7~0¢379 _ - -- -- - - NOTE C -INVESTMENT IN REGIONAL WASTEWATER .TREATMENT PLANT In 1974, the-CRty of Boynton Beach joined with the City of Delray Beach to form the Board,~a depend~nt special, district. The Board, which is governed by a body composed of the commission members from each city, oversees the operation of the Regional Wastewater Treatment Plant which services both cities and surrounding areas. The interlocal agreement between the City of Boynton Beach and the City of Delray Beach specifies that the Board has the authority to accept and disburse funds, transact business and enter into contracts for.budgeted items. In addition, the Board has the authority, subject to-approval by a majority vote of each city commission before becoming effective, ro adopt an annual budget, establish rates and charges for opera- tions, maintenahce, expansions and construction, enter into contracts for ~onbudgeted items End ~uthorize deficits of the Board by the Board. the return of 'any .surplus ~o the respective cities. 25- funds or levy add'itional charges for No debt has been authorized or lssued NOTES TO FINANCIAL STATEMENTS__c05rfiNUED CITY OF BOYI~TON BEACH, FLORIDA September 30, 1989 NOTE G--INVESTMENT IN REGIONAL WASTEWATER TREATMENT PLANT--CONTI.~D Ownership of t~e megional was ~th ~ <~este~l,proportionatelv eagh ~ei~y~, which te date c~ ty posal Total 30~ 1989 Other financing Sources (uses) Fund bal;anCg~, October 1, 1988 TOTAL REVEI~JE OVER EXPENDITURES BEFORE OTHER FINANCING SOURCES (US~S): REVENUE OVER EXPENDITURES FUND BALANCE~ SEPTEMBER 30 1989 The changes in.~e:Ctty s share of the assets, liabilities the YeA~"ende~"S~ember ~0, 198~ are as ~oilows~~''- and equity of the Board for Board Total assets Total lIabiliti~s City ~roper~y, plant and equipment Less ac~cumu~ated depreciation TOTAL MQUITY at Investment at 0ctober. 19g8 .1,.~~-~.Net September .30~ auuzclons _. 1989: ~_ · $ 2,64'3,294 $ Ss,215 ) 2,7~1,S6¢ 779,32~ ( '294 ;'230)485' 695' -2fi - NOTES TO FINA/~CIAL STATEMEIfrS--CONTINUED CITY OF BOY~TON BEACH, FLORIDA September 30, 1989 NOTE G--INVESTM~NT IN REGIONAL WASTEWATER TREATMENT~PLANT~CONTINII~D ts for its -i.n~estmen~'f~n the Board as ~ ~olnt ventnre~reco The. City acco. un .... ~o. The Board has established a reserve ior~= ~j_~o ~e~f- %~ea~r treatment plant which ~s~ funded by the monthly op= ...... ~ charge to t~e f~i~S. The monies collected by~ the <~o~rd for renewal and replacement ~tesc:i~: eq~~l%f~ts to..b.e~ves%9d for the .Board until needed~ are returned ~._ike flects its equity in these renewal and replacememt funds o ton Beach re for =enewal The City of B ~ ~ - -~ *~.~ ~wa ,-t~ set-ye o~ retained ea~ings as inveSt~e~fs~un~er~ mestr~ctea~a~se~ ........... e and replacement in an ~o~t equal ~to the actual investments held by ~he~itFff°r the Board ff~At~ Sepft~mber 30, 1989, the' restricted. ~ss~s related to .these ~.renewal and replac~ent .~ds t~b~}~d/f$~2,102~517~ ~ ~ ~ ~ ~ ~e~ zop~ty, p~t and equipment of the wastewater and The Bo~a~ Jnot ~or~d -~ U ~i~ ~ ~ncial statements because the eatme~t ffac~lzty or any P ~- - '" ante w~th their capital tr ' ,. ~- . ~ .... ',' ;e~'~ie~ .i~ accord legal t~tt~-~ ~ h has recorded depreciation P investments. Accordingly, the City of BostOn Beac of $523;873 for ~he y~ar ended September 30, 1~89 on its 50M share of the property, plant and equipment of the Board. At September 30; z198g, ?~he C~tY~s 50~'sh~re-~f the · ; ~ ~nt of the Board totaled $13~912~703~ le~s the acc~ulated property~ pla~% and eq~p~ . ~ ~'ude~:tn t~e Gt~'s balanc~ ~sheet ~ · .. .... ~ ~ . 0 '838 ~an~ kas~ bee~ tneI ~ i~ ~%t~o~ ~f $2,98 , _ _ de rec~m~t asPinges~t i~ Regional Wastewater Treatment Flant. NOTE H~+2ROPERTY,.i~LANT ~ EQUIPPEENT The components of,Troper Y, as follows: Land Buildings and improvements Lines Equipment Wells Construction in progress L~ss allowances for depreciation plant and equipment at September 30, 198~ General Proprietary Funds Fixed Assets Internal Account _Enterprise Service . Group ~ 1,561,300 ~ ~ 3,076,856 8,254,281 4,995 46,333,152 14,004,118 5,183,846 2,987,891 __ 5,426,775 78,567,517 5,188,841 19,522,000 _ 3,249,166 12,048,806 5,416,474 Construction in progress c~nsists primarily of renovations menns to the water and sewer system° are summarized Total 4,638,15~ 20,308,082 46,333,152 24,604,438 2,987,891 10,181,05% 15 607,826 30,723,187 114,479,545 22 7_~7t,166 to City Hall and imprcve- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 The change~ ir~ger~emal,fixed~asets are,.sUmma:riz~d~:a, sc f~)llows-: L ~-~, ' " Balance~, NOTE Ir- lows: General Fund Enterprise Fund Water and Sewer Fund Internal service fuhds Vehicle Se~viceFund Special revenue funds Local Option Gas Tax Fund Oommuni~y Redevelopm~ Fund Fiduciary funds · Firemen Pension Fund 7 R~irem~ntl 1 Trust Fund Boynton Beach Memorial Park Fund -28- Interf~nd Inte~f~nd ,Re~et~alble ~ ~ 408,007~ 303,360 2,340 ~ · 250,,000 158,00~ 408,00~ 50 50 2,340 __ 50 _ 2,39~0 NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE J--DEFINED BENEFIT PENSION FUNDS pescription of Plan~: The City contributes to three single-employer pension plans covering all full-time City employees: Retirement Trust pU~--ThtsFund ~overs all permanent full time employees except Those ~o~ered h~f~he-p°lic~'and fire pension plans. Employees become vested after ten years of service wit~{the City. Eligible retirement age is 62 with 10 · oee has completed at least ~0 fu.lI years o~ credited ~e-~e at vided the empl y _ . ~--~,~-~ '3% .of the ~f~Bt ~550 their normal retirement date.. ~mpioyee cony-~72-~%.%~% of ~550. Tlie ~ity's ~ ~ s % of monthly earnings 1~ ex~o~ ~ of monthlyearr~!rigs p~u 6 ~ , =_ contribution is'determined actuarially on'an ;armualuas~, und covers all sworn police.department employees, ce ~enSton Fund--This F i ible Poll · . ~ andare ~ ~ , ~ ice wit~-the City Employees '~re Wested after 1~ years of serv _. ~ '-,~ ~. .__~,u,,~on~ht~v~ ~rinuity ~ : - ar~/ of service regardless o. ~ for [retirement'after 20 ye ~ i ....... 0~t of-~u~%Y' 't° which chec~ begin ~he' month an employee retires aha nau ~u entitled will be equal to the n~ber of ye~s of the ~ =~ c ~ =~*~,~e final~.c0m~sa~iO~-- li ~'~e-gity's~% W6n. tcibutfDn is~ deter- ~ ~as~~ ts reduced 'by %~ ~H~nt ~]t~e ~ctty rke ~sta~ of Fiorida s cont~ibUC~0n~ are St~t~ :Ws ~hieh'~rov~des f~r tac.ts ~it~e~ ,on ~Bo~ton .Bea. p~p ~ a to '%n '?ty ' ali~ {freftghter~ ~d fi~e department yeaf~ Servic~.~th t~e City~a~ are ~e ~rdl~s~ of RgeJ' M~t~htg~a~uity e~ig ~sg~ ~th~ ~o~t 6~ th~ ~ni~y to I-Will Be equai ~6 ~he ~b%~~ ~f ~ears of c~ ice multiplied by 2.5M of awer~Age~fi~al ~ompe~ati~n/ E~ployee .~v~ ~ a~ual~ , ~comn~nsation-=. ~ ~e City's contrlbUt~on~ ' ~.~et~r' - , a~ a~ 'ba~s ~kd ~is r~duced bY~ th~ ~t th-e~ C.~ty ~ ~:_~= ~ ~a e~ae~ of: Florida's' co~%rlbu~iq~s ~re ~er 175~ o~ t~m~l$~ S$~tutSs ~hTch pro~ides for a pr~%~ ]g~ ~n~r~ :CO~b~S ~i~en on~B0~ton Beach prdpeCtt~e's- ~ ~ ~"~ ~ ~FTdc~da and remitted to tke City for the Firemen~R~sidn~Fdhd~ ~ NOTES TO FINANCIAL STATEF[ENTS--CONTINI/ED CITY OF BOY~TON BEACH, FLORIDA September 30, 1989 NOTE J--DEFINED BENEFIT PENSION FUNDS--CONTINUED Information regarding current year covered payroll and participant data for the three peB$io~ ,Plans i~ ~s .follows: . ~ · -., Police Firemen dai eff to 13 :'i~'s~,-adjnstt~dr~fer the pay- lis, of pe! plan The (e) senic for ~heir as ~ level ~d~,.~! pa~!of an actu~!ai~.::valUation per- ~et~ar~a~ assurap~ioms~ use~ ~>and ~ut~re.'assets, ,' attr~Bu~ab~a tp,.~ in~fla~lon, ~ependi~g on. ag.e¢ :-attributable ~no postretirement befell6 increases, i ~: ~ -30- NOTES TO FINANCIAL STATEMeNTS--CONTINUED CITY OF BOYRTON BEACH, FLORIDA September 30, 1989 NOTE J--DEFINED BENEFIT PENSION FUNDS-2CONT%NUED The· tbtal unfunded~ pe~si~n -ben"efit obligabion applicable ~ to December 31, 19,88 was as follows: Pension benefit obligation Retirees and beneficiaries currently receiving be~L fits and terminated employees not yet receiv- ing benefits Current employees Accumulated employee con- tributions, including allocated investment earnings ~ Employer~financed ve~ted Employer-financed non- vested TOTAL PENSION BENEFIT OBLIGATION Net assets availa~16 for benefits, at cost ~ UNFUNDED PENSION BENEFIT OBLIGATION Net assets available for benefits, at market City employees at Police Firemen Retirement Pension Pension Trust Fund Fund Fund Total 2,860,507 ~ 2;062,612 ~ 1,976,922 ~ 6,900,041 3,048,745 1,192,972 1,032,148 5,273,865 4,493,888 2,663,947 2,766,512 9,924,347 4.937.627 15,340,767 1,150,039 1.165.050 7,069,570 6,940,612 7,2~52,696 29,350,949 13,484'~616 __5.660.203 6,377,009 25,521,828 1.856.151 $ 1.409.367 $ 563.603 ~ 3.829~.121 13.406.505 $ 5.952.2~7~ $ 6~273.680 ~ 25.632~432~ Actuarial assumptibns Rate of return on invest- ments Projected salary increases attributable to inflation Projected salary increases attributable to seniority/merit 8.0% 10% 10% 6.5 10 10 6.5 8 8 The significant actuarial assumptions used to compute the actuarially determined con- tribution requiremeht are the same as tkose used to compute the pension benefit obli- ganion as described previously. -31- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE J--DEFINED BENEFIT PENSION FUNDS-~CON~I~NUED .* The contributions to the plans-for 1988 we.re made in accordance with aetuariatly determined requirements comFuted through an actuarial~ valuation performed as of December 31, 1988. Information Coneerni~g'.the 1988 pension contributions is as fol- Normal cost Percent of current covered payroll Re~ir~e~t Trus't Fund Amortization o~unfunded actuarial accrued lfabilit~ Percent of current covered payroll Police Firemen Pension Pension Fund Fund Tota~l 12.61% 13.06% ~.39% '' 13.00% 256,660 3,697 $ 3~i037 $ 303,394 2.27% .08% 1.62% City pension contribution Pe~cehtlof currentcovered payroll Employees' comtribution Percent of current covered payroll 871,572 ~ 531,3~'6 7.72% 12..09% 1~..~58~ _ 10.15% 576,010 $ 274,625 ~ 19~,628 i ~ ,;045,263 5.10% 6.24%~ 6.60% 5.61% Trend Information: Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Ten-year trend information may be found on pages 129~ through 134 of ~he City's comp~ehenSi~el annua~ f~nancial report. The following table presents net assets available for benefits as a percent of the pension benefit obligation and the ~nlfunded pension benefi~ obligation and employer contributions as a percentage of aD_~ual covered payroll: 1988 1987 1986 Retirement Trust Fund Net assets available for benefits Unfunded pension benefit obligation Employer contributions 87.39% 98.29% 16.42 2.40 7.72 7.49 6.75 Police Pension Fund Net assets available for benefits Unfunded pension benefit obligation Employer contributions 80.06 81.58 32.07 27.90 12.09 10.60 11.02 Firemen Pension Fund Net assets available for benefits Unfunded pension benefit obligation Employer contributions 91.87 89.30 19.13 23.36 16.58 13.65 15.80 -32- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE J--DEFINED BENEFIT PENSION FUNDS--CONTINUED Showing unfunded pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the~effeets of inflation :fo~analysis.p~rposes. Fo~r~ the ~h¥~ years ended 1988, 198.7' and~1986~ 'tke ~City's ~contributi0ns accordance ~wtth aCtuari~ty ~etermfhed ~ ~e~uiremen~s .; Postretirement Benefits: The Cit~ offers contribution of heal~h~ ~nd. life insurance benefits to employees upon retir~ent. The full cost of such benefits are paid by the reti=ees~ and the GitY~s no~ ltabili~Y~ for p~streti~r~ent benafi~t;s~ Investments: September ,30, 1989 a~e ~ . r. M~t~emant::T~mt ~nd Botice'PenAion Fund~ Fizremen Pension Fund -.~-~ ~ J- ~'-~ ~M~rket:.~ , ,~ '~... Market ~ ~arket Cost Value Gost Value Cost Ualue Money market f~nd ~ Mutual fund U. S. Government ~. : ~ -~ securities 2,388,769 Corporate bonds 5,244,059 Common stocks 3,425,341 $ 3~238,1390:$'~34238;390.$ 970,4~0 $ 970,~1&,$~,742,919 $i,742,919 100,100 t00,100 2,425,143 2,684,451 2,73~,268 :1,§90~946~ 1,612,142 5,222,658 313,249 299,409 2,013,579 2~022,41~ 4,319,424 2,236,151 3,074,241 1,376,954 1,744,865 $14.296.559 ~15.205.615 ~6.204.26 $7.077.328_ $6.824.49~ $7.222.44~ Cost is based on actual cost or par value plus unamortized premium or less unamortized discount. Fair market vat~ue, has .b~nL de~ermined by~ q~oted.market :pric~ for all signifi- cant investments.~ < . '2' During the year ended Sep~embe~30~i-1989, ~he total ne[-rea~llzed~ ~atns included~ in pen- sion fund investment earnings and the net appreciation (depreciation) in fair m~arket value were as follows: Retirement TruDt F~nd Police Pension Fund FtCemen Pension Fund RaaTized* '~ ''Realize~ ~eaiized Gain Appreciation Gain Appreciation Gain (Loss) (Depreciation) (Loss) (Depreciation) (Loss) Mutual fund $(35,818) ~ '~. ~ ~ $ $ U.S. Government securities ( 9,269) 36,374 48,817 ( 6,805) 2t,196 Corporane bonds (11,603) (21,401) ( 13,840) ( 3,669) 8.835 Common shocks 461,912 89~,083 93,229 838,090 153,307 367,911 $93.229 Appreciation (Depreciation) 405.222 ~%~9,052i $ 873.067 ~142.8~ ~97.942 -33- NOTES TO FINANCIAL STATEMeNTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE K--DEFERRED COMPENSATION PLANS The City offers its:emplo~ees?a,,defe~red compensatfon, plan:dreated~-im_ac~cordanee-wi,th Internal :.Revenue :C-ode Se'ction a~mtlab~e to ~alt CRty:emptoye~s 'and a portion of hie to or an Ail the I~. is The gene~I'a~ ~o~bltgation,bonds of the City are as follows: Rec2~a%}p~.a~]~:~ and M ~ur~i,'c~pa~ Beach :Facillti~s..~.B~nds-~The~u~uthorized issue dated Fe~¥~a~ 1~ 1:983 w~s $i~0,000. Bonds are o~ts6anding at September 30,~198'9 in the amouqt of $1,5~0~000 and bear interest at rates ranging from 7.25% to 8.6% per ~r~u~%-;~T~.~e! $!omds. Magu~ng~Augus~ $~.t994 ahd lt~eaftez:~m~e, vsubject~to::=edemption Series 19~5--The authorized issue dated August i, 1985 was ~6,350,000. Bonds are 9utstand~ mt September 30~ 1989 ih the ~amouni o~ ~5.8MO OOO-andt~ear interest at rates ra~g~ng., from~% to 8.6% per an~um.~7!Bonds maturing Now~bem~{1, 1996 and thereafter% are ~ubject to redemption prio~ t0 maturity ~ IgSg-~e a~lho~lJ~d issue dated November 1, 1988 was $2,390,000. Bonds are 0ut~tanding at'September 30, 1989 i the amount of $2,390,000 and bear inter- est at ~ates ranging from 5.90% to 7.25~ per a~. Bonds maturing November 1. 1996 and ~hereafter are subject to redemption priGr to maturity. -34- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE L--GENERAL LONG-TERM DEBT--CONTINUED The debt service requirements of the City's general obligation bonds are as follows: ar September 30 1990 1991 19'9'2 199~ 1995' 1996 1997 1999 2(~00 ' ~ 200'2 2oq3 2004 2006 2007 2008 2009 2d10 Princinal $ 2~0,000 '305~00:0 335,000 3~o, ~o'o 405,000 440i0'00 ~5 6,Co "520,000 555,~00 16oo;ooo 850~000 '7~o~0oo ~0,000 l~O~O00 195,000 2~0 ~000 Balance at End:of : Interest Total Fiscal_Year 761 860 74~,51~ ~72~33 6,43,~21 6t2:~41 57~ ~69~ 5:39 ~ ~§8!3 401 ~46 0~3 ~285 9~3 ~i48 ~o 48,938 22,294 991,860 $ 17,~41,920 1,048,514 16,2.93,406 1,056,724 1~,~2~36,682 1,053,029 14~t93,653 1,062,133 1~,~}Z1~520 1,048,521 12,~.2,999 1,052,441 1] 558 1,052,694 864 1,059,378 486 1,052,383 103 1,051,624 479 1,056,431 048 1,056,043 DO5 1,050,913 092 1,050,408 684 858,640 044 857,130 914 218,938 695,976 221,069 $34,907 217,294 217,613 '~17,613 ~ ~ 9.810.00~ ~ 8~523.7.8~ ~]2L~t33~TJLQ The special revenue bonds of the City includ~ the Public Service Tax Revenue Bonds, Series 1986. Series 1986--The authorized issue dated November 1, 1986 was $11,650,000. Bonds are outstanding at September 30, 1989 in the a~oun-t' of ~10,985,000 and bear tuber- est at rates ranging from 5% to 7.125% per annum. Bonds maturing November 1, 1997 and thereafter are subjecn to redemption prior <to maturity. The bonds are secured by a pledge of the public service taxes received by the City. -35- NOTES TO FINANCIAL STATEMfENTS--CONTINUED CITY OF BOYNTON BEACH, ~LORIDA ~ September 30, 1989 NOTE L--GENERAL LONG-TERM DEBT--CONTINUED The debt service requiremenns of the City's special revenue bonds are as follows': Fiscal Year ' ~al'a~ce September~ 30 Principal Iht er,e~t Total Flscal~ 1990 %.¸ The change in general l~ng-term lows: Compensat~ absences General obligation bonds Special revenue bonds Litigation settlement 1,067. ~ 1,O68~482 1,063,203- 52 1,066~052 1,O61,9~6 1,060,850 1,D62,335 1,061~010 1,056,755 1,054,575 1,054,333 1,055,615 1,053,168 1,051,247 1,044,959 1~044,753 1,045,094 1,040,803 the 14 Net ~Balance, ~ ~ ~mPensated October 1, Absences 1988 _ Accrued 7,~35,000: - 2,390,000 11,325,000 8,000~000 't0 9~ 19.012.268 :~(hJ~ September 30, 198~!~,~' as fol- .:~ ~tance, Debt S~'emb~r ~0, Additions Retirements 1989 ~15 000~ . ~9,~10., 000 340/"' : ' 000 10,985,000 8,000~000 $ 21~:014 ~ 157,0~ $ 10~390.000 $ 555.000 $ 31__345.06Z Tke City has non established a legal debt margin limit. -36- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE M--REVENUE BONDS The outstanding revenue bonds of the City at September 30, · . ~ ~ ~ ~ Sewer ~nd: R~venue bonds~ payable - - U~amo~tized :di's~ount 36'5 · ~26 Less current ~o~rtion LONG-TE~ION 1989 are summarized as £ol- Boynton Beach Recreational Facilities Fund Total 3,770,000 ~ 21,922,814 71,766 437,030~ 3,698,234 21,485,78~ 130,000 1,005,000 3.568.234 Wa-t~er ~nd Sewer..Fuf%d: In May].I?$.~4,, the W&~e~ :~:and Sewer Fund issued $9,635i000 of Wat~er and Sewe~:~U~!~ty Reva~e~nds, S~i~?~1984A to ref~d the then outs~nding Wat]e~(~d Sewer'Re~enue Bonds.~ ~lt~ 1964';~1971, 1974~ 1975A, 1975B ~d 1978~ 'The pro~ceeds of the'~i9~b~onds w~.e~ nS'ed to f~d ~ ]Trrevocable escrow accost est~tshed to pay principa~i~a~i~terest~-~h ~he 1964 tO. 197~ bonds. In November 1985, tbe~ Water and Sewer ~nd issued ~20,237,8i~ of Water and Sewer Utility Revenue Bonds, Series 19~5 to refund the ~t~e~ outstanding Water a~d~S~e~¢~ R~yenue Bonds, Series 1984A ~nd to provide funds for capital improvements. Of the total Droceeds of the Series 1985 bonds,~ $t0,4~8,,00OJ was u~ed-~o .~fu~d ~']trre~o~%le esc~ow.:.account' esta~lisRed to redeem and pay inCa=asr ~tk~ ~$ez~s 1984A ~?~fg ~o~al~ng ~9,~35,000 of prineipal and $~3,~238,870 of int~ef~t ~at ~t~elti~~':of;ze f~g. ~:A~ September' 30, 1989 / tke ~rinci- a~ ~nd~ xnterest~ ~outsZ~dz~ 5~co~s~d.~.extxmgux.shed ~de= these areang~n~s was m~ dete~in~bl~ ~?~ ~5 ~ The debt service requirements:of the City's Water and Sewer Revenue Bonds, Series 1985 are detailed on t~e next page ~ are funded by the excess of user charges over oper- ating expemses an~ investment income. ~e Series 1985 bonds bear interest at rates ranging from~6M to 9.5M per a~. The Water and Sewer~tility'R~e~e Bonds, Series 1985 consists ~of $18,100,000 Currenn Interest Serial Bonds maturing from 1986 through 1993~and'S2,t37~8t4 Capital~Apprecia- tion Serial Bonds maturing ~dm 2001 through 2005. Accretion of the-discount on the Capital Appreciation Serial Bonds amounted to, $~61~226 ~foc ~he fisnal year~ ended September 30, 1989. This amoun~ is included i~ theiaec~mpanying financial statements as accrued interest sayable. -37- NOTES TO FINANCIAL STATEM~NTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE M--REVENUE BONDS--CONTINUED Fiscal Year ]ERding. September 30 lggo 1991 1993 Principal Interest Balance at Total Fiscal. 2,054,$20~ $ 33,394,~21 ,830 ~'3i,304,'5.91 6,68 29,~i'5,9i23 ~?,t~0,091 Bond?. the 0~, 989. ~;~ ~iutlon 85~Y~Y<as ~ires that re~en~ ~ses of"the'~sbem, '~;~S and Replacement Fund re( was in compliance with 30, prtncipgl .and '~nt ~rest ~ ~- 3 ~-*'~ - *--~ ~ > ' - ¢Cu~rent reserve-account. ~d ~rene~a& ,s' '~ .2 < ' ~ ~ ~%.~.nd replacement reserv~ 'requi~-e~,~n.~.?. TOTAL R~QH~REMENT EXCESS OVER REQUIREMENT $ ~2¢~00 '100% ~: 120,00~0 ~ 9,168,956- 14,561,196 $ 5~3_~2.24Q -38- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE M--REVENUE BONDS--CONTINUED Bosrnton Beach Recreational Facilities Fund: In October 1984, the Boynton Beach Recre- ational~,Facilit~es Fund issued-~4',000~000- Recreational Facilities ~'evemue'~Bonds, S~ries? 198~ to '~-~efund:~ke ~h:e~ ,0Ufst~n~ing~ Ra:crea~on~ ~Fact~i~te~ ,Revenue- Bonds,. ~eries/198:M ~ ~ ~The ~ce~dm.of ~the ~.S ~ries. i98~ bonds We~e/-used ~o ::fund ' an -~frrevocabl~ e.s~crow .acconn~_~sta~ltshed' to-f..~edee~ an~'.p~v' in~e~es~ ;on t~ Series. I982 bonds tot~l= lng $4,000~000 of principal and ~5,08I~<668 Septembe~O~::t989, the pr~cipal and interest ou~standt~ b~t considered exti~uished ~der th~S~.ar~angement was not determinable. ' ~ ' b The Se=te~ 1984 bo~ds ~ar~ funded~. ~ the excess o£ user charges'over operating~expenses and i~es~me~t incbme; ai~dfb~ar interest at rates~:ranging from ~7~75~ :to 1~.125% per anntun.- The debt service requirements ~'~.th~ Series~1984 bonds are as follows: Fiscal-y~a~ Ending September ~0 Principal,, Interest Total 1990 $ 130,000 1991 140,000 1992 150,000 1993 165,000 1994 180,000 1995 190,000 1996 210~000 1997 Z30,O80 1998 250,000 1999 2715,000 2000 30:~,000 2001 33.5~000 2002 36~,000 2003 4~Q,O00 2004 445,000 ,Balance at End of Fiscal Year 353,589 342,951 331,164 3't7~964 303,076 286,651 268,389 247,751 224,764 199;226 170,654 138,806 103,806 65,306 22,528 483,589 ~ 6,663,036 482,9~5I.:..6~150,085 481,164 5,698,92t 482~964t 75,21~5~957 483 076 4,732~881 476 651 4,256,230 478 389 3,777,841 477 751 3,300,090 474 764 2,825,326 474 226 2,35~,1~0 475,654 1,8~5,446 4~3~806 ~1,~01~640 468,806 932,834 465,306 467,528 467.528~ 3.770.000 $ 3.376.62~z $ 7.146.62~ -39- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE M--REVENUE BONDS--CONTINUED Bond Resolution 84-TTT~of :on 'Belach r o-ss revenue b:e NOTE N=-qONTRtBUTED CAPt'TAL Contrlbutedilcapital of :the proprietazky following: ~ Prope~ty£owners amd:developers Grants ; City Of Boyntom.~each P~lm~Beach Countyt3 Less deprecia~i6n On contribute~. capital NET CONTRIBUTED CAPITAL funds ~t September 30, 1989 control, S Internal '~ ~ Enterprise Service '. -L .Funds Funds To~t $ 49~53a;.056 $ 17,242 ~ 49i~,298 1~.523;946 1t~:~,946 2~6~,194 1,090,156 61,45~,'413 1,107,398 62:'~,811 8,011,639 970,176 8,98g,815 ~ $ 137,222 $ 53.583,996 of the -40- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE N--CONTRIBUTEDCAPITAL~-CONTtNWED The changes in contributed capital for the year ended September 30, ,1989 ized as follows: Rroperty City of Palm ~Owne~s~a~d Boynton Beach De~elopers Grants~ Beach County Total Enterprise funds Water and Sewer Fund Balance, October 1, 1988 Additions from: Commercial and residential development TOTALENTERPRISE FUNDS, SEPTEMBER 30, 1989 $44;038,804 ~11,523,946 $ 276,i94~126,217 $55,965~161 5,493,252 49~532,056 11,523,946 276,194 5.493.252 126,217 61,458,413 Internal service funds Vehicle Service Fund Balance, October 1, 1988 Additions from: Commercial and residential development ~ TOTAL INTERNAL SERVICE FUNDS, SEPTEMBER 30, 1989 17,242 1,090,156 1,090,156 17,242 1.090.156 17,242 1,107.398 TOTAL CONTRIBUTED CAPITAL, SEPTEMBER 30, 1989 $49.549.298 ~ ~1.366.350 ~ ~ NOTES TO FINANCIAL STATEM~NTS--CONTI~JED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE O--SEGMENT INFORMATION FOR E~fERPRISE FUNDS Tke City maintains three enterprise funds to.pcovida~ water.~and isewer services, operate the municipal golf course and provide sanitation collection and disposal s:ervices;!,Segment informmtio~ fo~ ~the Fear *ended 'September '30, 1989 is as follows: Boynto~ Beach :i~ '% ~ ~ R-ec~c~al Total ~ ~ . .'~ Water and~ ~l~s Sanitation Enterprise ~ -~ . ~ Sewe~ F~nd ~.~d~ Fund Funds Operating revenue Depreciation and amortization expense 0peratingtn¢6me (loss) Net operating transfers out Net income (loss) Current capital contributions PrOPer~ty,~plan~and equipment Additions D~lettons Net w0Mking capital Total assets Bonds payable from operating revenne, less unamortized discount Total equity (deficit) ~ 11,399,926 $1,695.,191 $ 4,658,542 ~$ 17~,~3~659. 2,546,800 226,837 32~'30~ ~Z~ 805,944 2,400,.i~ . 459)-276 ( 209,103) 1,233,548 28,908 715,~86~. ~i~9~,942 2,820,262 234,416 ( 836 .iZ~'218 ~ 379 9,844,528 205,793 29 ,.Tgl?~ 105.080,102 ~556,790- 11~677 ~ 1 ~99~J~ "~, 570,458 27,108,835 324,720 79,679 27'~513,234 104,130,061 3,997,400 780,~)8~, 1~9~7,548 17,787,550 3,698,234 2tt~.4~85 ~ 784 81,470,144 67,201 ( 79,902)~ 8-1~ 4~7,443 Inte~Sales: Sales between the City's enterprise fund segments ar~ accounted for~as quasi-external transactions in each of the individual funds. ' NOTE P=~INTEREST COSTS The total amount of interest costs incurred during the year was ~,285,673. In accordance with Financial Accounting Standards Board Statement ~No. 62, the City has adop~D~.the ~p01tdy ef qapitalizing net' ~inte~est ~costs~ on funds~ borrowed since August 31, 1982 to finance the construction of fixed assets. Interest costs of $208,000 were capitalized in the General Fixed Asset Fund as part of the cost of construction in progress. NOTE Q--RETAINED EARNINGS DEFICIT At September 30, 1989, the Building Improvement Fund had an accumulated deficit in fund balance of $1,416,413. The deficit is expected to be funded from the investment earnings of the public service tax monies and the half mill tax collected by the City for capital improvements. -42- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE Q--RETAINED EARNINGS DEFICIT--CONTINUED A,t~~ September 30, 195~), the Sanitation Fund~ had an earnings~ Of ~79,902.~ . The deficit is expected to be~ eliminated by user charges. NOTE R~-EXPENDITURES OVER APPROPRI.~A~IOHS Expenditures exceeded appropriations for the year ended September 30,. 1989 in the fol- lowing funds and departments: Expenditures O~er Appr oprfiat ions accumulated3deficit in retained future increases in General Fund City attorney Data processing Gtty Hall/general administration Police go~mnunity Dev~Iopment Gra~t expenditures Operating transfer to Self Insurance Fund Operating trans~e~ to CommnqitY Redevelopment Fund 374,672 276,715 63,447 194~,659 431,430 314,367 6,109 Special T.ax~ev~fPublicity Fund Operating transfer out~ 661 NOTE S--SELF INSURANCE PROGRAM A.t the end of the September 30, 1988 fiscal year, theCity formed a self insurance fund to accennt for future general liability, automotive liability and workers' com~ pensatton cla!ms~ The Self.~nsu~nce Fundts categorized as an interna~l service fund.. During ~he year, the C~ty ct~arged actual general liability claims paid to the fnnd incurring the liability. A~ year end, excess funds from budget were transferred to the Self Insurance Fund. The budgeted ~mount for workers' compensation was charged in the various funds amd departments and the related revenue recognized in the Self Insurance Fund. The year-end liab$1ity~ for claims outstanding and for imcurred-but-not-reported Claims~was accrued in the Self Insuranc~ Fund as this will of these claims. Insurance claim expense ~ recognized incurred andincludesincurred=but-not-reported.claims. be the source of paymenE at the time the loss is NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE S--SELF INSURANCE PROGRAM--CONTINUED ~ ~ ~ The City ~as .s~lf insured.~.for workers'-~ compensation, for the. fiscal year:.e~ded September,3O, L989with an excess-policy ~ove~ing claims, in excess ~f $100,000~ ~he City was insured for general liability and automotive liability for this perIDd under a policy with a ~!0,000 deductible a~da maximum lo~s of ~500,O00 pe~occnr~<enee. The estimate~ insurance cia~m~ ps, ablest ~emb~ ~, ~98~ u~de~ ~h~?se ~W~° Programs, N TE T--COMMITMENTS ~kND CONTINGENCIES ~..~ .~ .... , .... The Cit35:ha-s.:~arious long-term con~raotual obligations for construction pro3ects on which wgrk~.~a~ not'been c0mpleted' The approximate balances of the cont~aets and rel~t~;~9~!~e~s, as of September 30, 1~89 are as follows: Total ~Qntr~ct amount Paymenlt~s on-:construction contracts REMAINING CONTRACTUAL'~ COMMITMENT, SEPTEMBER 30,~989 General Fixed Water and Assets ~.. Sewer Fund Account Group ~ Tot~I ~ 6,821,503 ~ 13,586,874 ~ 2~,40p,377 4,439.89~ ~~10,204,~0g · _14,6~4~002 ~ '2.381'-~10 ~ ~. 38Z.~6% The contractual commitments of the Water and Sewer ~d will b~ p~d~rb~ t~e proceeds of the Wa~er and Sewer Utility Revenue Bonds, Series 19~5~ Th~;t~ht~aeru$~ commit- ments for construction in progress in the General Fixed Assets Account Group will be paid from the half mill tax collected by the City for Capital Improvements. The City is a defendant in a cause of action brought by the contractor for the City Hall c~nst~ction project. The suit is based, pri~ari~,hOn a~delaY ctaim]: wherein thei~ont~ac~or asserts~that the architectandthe~Cilty ~-responsible fo~ f~ord~nate delays .ehcountered in the. completion of::~he~pro~ect~. ~he Cit~ h~ '~,,~.~o- ~ asserting t~at the contractor is responsible for ~he: deI~S. :~The~tttma6~ od~ceme of this litigation cannot presently be determfned. '' NOTE U--LITI~ATION SETTLEMENT The City has agreed to settle a lawsuit relating to the interpretation of a settlement agreement which Was entered into after the denial O£ 'a re~oning request. The settle- menc~rovides for the payment of the sum of'~8~O00,00~. ~f c~tain ~Ayment provisions are not met, the settlemenW provides for intecest at th6 legal rate (12%) from the effective date, January 24, 1990% The City expects to'fund the se'trlement from~ the issuance of bonds or some other type of obligation co be issued during the year ending September 30, 1990. -44- GENERAL INFORMATION _ CITY OF BOYNTON BE~CH, FLORIDA AND p~LM BEi~CH coUNTY, FLORID~ -APPENDIX ~_ · CITY OF BOYNTON BE~%CH, FLORIDA 'AND ]~i%LM ,: BEACH3 ~COUNTY, FLORIDA~ ,'CITY OF .B~yNTON BEACH Introduction The City of Boynton Beach, Ft~rida~-(the "City") ms ~ocat~d t3. mll~s s~u~h ~ .... ~ e ~ . ~ ~ ~ ~ ~. ~ b Lake 0~th erda ~xce t f ~ , ~ , ..... ~ · Intracoastal. War Y~ ' - P . · , ,. ~ .... h~ch. coot to- th~ ~At.lan: tic:'Ocean'-" ~e~area ~enef~ts fr0m-.b~. ~uean b~reg~ ~ ~ _. ~ r .... .n .e ~Wlnte oder~tes d~rt ~ . ~ ~ ~b~ -.~ummer d the-warm,~g~l f Stream-air W~C~ ~ ...... . , . ~_ res~zmg ~ln a g P ~- ~ . ~d alike enjoy relaxed life Styles ~ed ~o the ,outdoQrS becaus~f climate and excellent recreational facilities. The general terrain of the City is somewhat higher than that of the other-areas of ~the~towe~ Ftorida..~east co'~st. ~Rolli~g ~hi~ls~ .~Lake 'Worth and ~he mntracoastal ~ wate~my have~.~addedc ]t~ ~e ~des~rabiti%~ ~ 6f h~mesites' throughout' ~e City% which is~es~ent~al~l%y~ r~sidentiai. Howeve~k~ there ~are man~mall co~er=~~aL and ~bu~iness Wes~.~c°nc~rns~'?<P~-~m~ ~each,ilncludi-~g~J ~ ~ ,h ~ more' th~n~ shopping centers within the City. o~ -fiz~een.-~:utes,,~.or--,l ~ and Fort Lauderdale, thirty minutes south Boynton'Be~cii, ~mer6~ c~l%qra: ad~nbages,,found::in ~ar~er metropDli~$n.a:reas- city Go~er~ent . ' . ~: ~The~ cit~ i~ a munici~pal corporation-0rgaDized-} The:Ci~ is~authori=ed:andbyexisting- the ~ Un~r the_of la~ of the, J~t~te :of Florida. Pt°visi°ns Ch&~%er 166~;: ~Flo~d¢~ Statutes;:' and' bYG:~e :City~eharg~r ~ the :~i%Y',? chapter 24~8~': Laws,:~f ~FlQrida;-A~ts~'°f ~947, as,-,amsnd~d:~ to~ issue revenue bonds and ad '~alorem~ ~ax..:,s~p~ported b.omds1. ' ' : ~e Cit~.~i [~ve~ed fby a?.City Commission (the~ ~co~iss. ion") consisting m~r~ h0 are elec{ed from districts to se~e staggered two-year Ofte~sfOUrand a ma]~ elected at large for a two year te~. Th~ Qice-mayo~ is i , ~:~ ~ission :on: an: a~ual ba~s~.~ ,~e :Co~:ssA~.n ~lS present y chose:< by~ t~, ~ ,of:. ie. Moore: ~ Mayor, Lee.- W~sch~, V'ioe-Mayor~ Bob Olenik} Commissioner; :ine Weiner, Commissioner; "and Lilian Artis, Co~issioner. Administration of the operations of ~he:City::is carried out by a city Manager who is'~pp0inted: by the Co~ission ~ who !is an employ~e.of:the city The r area gym ~: '~:ava il a,b'l e The q~ C~it.¥,~is: ~ fire - cons~u~i~i~'~ ~'~i~~ ~. the ~ ~O~Ora.te: ~a ~i~d emergg~y~ ~e~p~Se ~vehicles w~th o{ ~2 s~ate~ cer~i~f~ firefl~hte~S~ ~he' department has f6ur paramedic rescue yeh~cles equipped with life ~ppo~t systems which are mai~taihed by paramedics and medical %e~h~iCianS. A-2 .The City~ ha~ ~ recently ~remodel~ed and ,expanded the library to approximately2870~0 squake fee~,~re~than ~oubleit~ previous siz~i~d has p~vided~a~b~l~odern building in-~hich~he citizens, of Boy~onBeach · collection offers i05,000 en3oy )e circulation has been greatly volumes.! ~are~.~ A p~pp~t sta~ a~d 'Story~ i~ems that ~traQt many youngsters. A one of-. the .innovations~ and will be operative gascon as ~ilabl~. ~he p~o~ram R~om Wi~h a~m6vable dividing Wall, provides superior space for existing library-spensored ~w~= ~d ~ makin~ it possible to expand those offerings. In addition, ~2~-i~2~ ~ts=.~ the citu' is ~a membe~ ~f the Palm Beach. County C~/~zei~sh~ ~c~Ss .t~~ o~ ~i~ra~i~s ~n~e C~kR~ ~and ~e~ab!~ng pgr~lclpa~on in ~n~rvli~a~;~ ~< networks' ~a~ ~ea~ t0 ~ha ~S~te ~evel ..... S,.,~b~%,~ Beach~Co~r~ea~rg.~p,~evide~3~h~ough the 350vbeU~-Be~n ~ ~&h~ ~s~t~l.~~s,~_~i~&-~Uding~ s~ical~, o~stetrical,~ p~diat~ic~ e~erg~cY, an~' men, cai ahd~s~r~i~al in{chaiSe C~re facilities. Th~ hospital currently employs approximatel~ 1,400 persons. The medical staff includes ~53 medical ~oc%~rs~ and ~dentists. ~ethe§da has recently completed its t~elf~h building p~ogram at a cas~ in e~cess 6f $5 mill~on for construction, wn~¢n ~r,~ f~r-~%~ m~3:o~i~ ~xpans%~..~nd _.relocation o~ the. dietary ih~i~alna~:th~sc~601~o~ iR~ie~g~c Te~nof~ay an~:clin~cal.affiliations of ~ie~s s'~Sois0~i~u~g~'in~outh F10rlda%,~ ' R~Cme,atio~ .:,~ , . ~i~ ~he ci{y' ?~rates' a~ar-round comprehensive community recreation program, which l~Cludes a public beach park complete ~i~h picnic, snack and r~sta. Urant-~a~il~.~ies~and ~hi~h~is protect~diby~icert~fied lifeguards, The h~th&~.C~v~s. ~th~etic,~eu~l~ural,~inst~ctional and~socialprograms for ~d. Ults~ an~ yQu%~i~on:~-ai'continu~ bas~s is ~he City ClVlC Center on Ocean Avenu~i ~h~ a~tiUkti~S ~nclu~e d~hcing and sports, a~ well as other training i~ uario~ ~ar~as e~' personal enrickment ~d recreation~ The City also sl~.o~sors ~a~/~am ~,~ ~por~s ~ini=S ~nd-sP'~e~ial. events, and. tri~s for-area ~'Sid~nts}~.~Oca- ~ ~ 'the .¢~tv'S recreat~nal complex on Ocean ~venu~ are ~rkwithi~p~a~gr¢ a' ~ClUipmen~ The Citya~$O~mainta~ns~appr°ximate!y twenty ~%ig~Qr~o~pa.~ ~ic~ are.w~-!~ equipped, a neighborhood center and ~im~g ~t~ q ~y iS. C~U~eh%ly ~d~ye~ing,.a 30 ~re pa~k complex; the f~rsti ph~seof i~h '~iil ha~:i ten~s ~ili~ies. Th~ emphasis is on programs to suit the needs of all ages of Boynton Beach residents. A-3 ~ y : salt ~ater marinas,w~th comple~ m~ he ~ ..... ~ . ~ .... ~ - ~eep :Sea arby,~lakes a~ cana~s.~ Nest~ ~ the City ~s,the S) cft~ b~s~ A-~4 Road andhi'ghway~facilities a~e_~ise excellent. ~U;S~ Highway ~1 passes throughthehea~i~ the city.'The. F~rida Turnpike~, about f~vel miles west of the city, ~p~O~9~s~transportation ~0~the~orthcentraipart of the S~ate and as far s~uth~!a~ the~entrance~to ~e Florida Keys. 'Interstate 95~passes through the ci~.~.~iB~nearing~compl~ion and'provides close~n ~lterRative ~th-s~ut~ra~por~t~n~r~ghtbe.~Ci~y and t~r~ugh~ut ~t~er~reas~ef Southeastern coaSt~,Of Flor~da.~ ~ ,~ ~ ....... communications Located within t~, ~it~z' are four radio s:tat, tckns, two~ AM. and.two FM, principal television networks are received with broadcast stations in both West ~Pal[m Beach a~d Mia~mi. ini ~ddition~ the City.~has ~ public brOa~dcasting, newspapers~s~g~the ~ar~a.~ ar~ ~he '~at~ Bea~b~~ P~St:~, ~'~morning~-~p~Per and~ The P~.lm Beach:iT,lineS, ,.a~ a~t~r~o~-~aper.~ The Sub ~en~el~;/a~morn.in~ paper,~ith a- Palm Beach "ed~ition,-' is published daily in~. BdCa :Raton.':~ T. he M~ami ~Heratd7 a~ ~orninq DaD~r 'a~.~o~ ~ith~ .P~m .B~ch..edft~io~, ::~:~is~ au~lab~e in :%he~;~City the .- Palm~ nBeach~ ~u~ty ~ ar:ea~?~ ~ ~A~i~SO f~i~tabl~ ~ ,~re~ The Boyn~n~Beach ~News Jou~al and the Boynt~nC ~h-T~!me~'.:bo%h:~e~kly 'papers ~6~lished 'every T~ursday. ~:; ~ · ' L-~ '~ .... .~ ~ E~nom~ ~ ~ :- -~ - ~ ? .3 The major segmentS~ ~O~f t~e ~e=onomy~ of~ the City area-re,ail and wholesale %r~de;~ real ~estate ~nd .fina~ce,~ touriSm,~:~'9~ic~lture, 'p~ofe~s~:~l~ services a~ Li~ht manufacturing, q~ T~e~ retail ' ~t~ad~is p~imar.f.~y centered i in ~t~he &tea's ~3.'major shopping Cent~r~3and tS m~i~r cen~ers et'-~trip centers. ~The ~t~n Beac~ Mall~ a ,major re~on~;t s~epplng ma~l~3~ housing five ma~]or department stores and 140~L Sp~a~lty~ ~hops~. o~e~ed~ in ~Octobe~, 19~5 a'~d had a significant impact on the retail trade portion of the City's economy. ~ A full range ~ of~ prO~s~%~onal ~erwiCes f~om %~media'l and dental~.care to l~e~a'.l~"COUnS.el ~cane:be ~o~tai'~'d :~in~ th~ ~'~ty~ ~ - Fi.~a~ce ~.p~ays~ an~ important rote in the co--unity with 13 commercial banks and 13 savings and loan association branch banks. Approximately 57 light industries are located in the City, with manufacturing products ranging from paper processing machinery electrical switches. Motorola Corporation has completed construction of a 349,000 squ~re foot manufacturing fa~lity in the City which employs approximately 1,700 persons and~ is one of the~aTea,s largest empIoyers.~ This facility houses the paging products divisionk which ~ manufactures beepers. ~ ~ The: City. ~is seeking additional light indust~ which~ would be compatible with the overall plan of community development. . ~ :.kgricu'llt~at a~reage tQtat-s app~ro~imat~ety 32,0a0La¢~es ~est of ~he City and ~has~ a SignOri-cant i~a~ a~ri~Ut~:ural h~rSes, ' sod~ f!ow~s, orn~h~ais, ~i~ vegetables ~ a all At the present tistedbe~ew': time the City has five contracts with four u~ions, as Fra~e~al~Order5 of Police~(FOp) orepres~nts' thev pc~iCe s~rgeants. ~he'::c~nt~a¢~ between ~h~ ~%y anO~ PQP~i~~i£or..,a period~of ~w0 ~ears. ~'b~gin~ng 10-1-89 and e~ding 9~3e~9i. Police Benevolent Association (PBA) represents the police officers. The contract between th* City and PBA is for a period of two years beginning 10-1-89 and ending 9-30-91. A-6 3. InternatioRal3Association~of Firefighters (IAFF) represents the firefighters. T~e con~ract~,~between %he City and IAFF is for a period of two years beginning 10-1-89 and ending 9-30-91. 4. Internation3~Br~therhood of Firemen & Oilers (I~FO) represents the ~ ~ b~u~ot!~e_~ The ~.n~tween the C~ty and ~F0 is~fQr .... a per'~0d of One year beginning 10-l-S9 and ending ~30~g0. 5. Fraternal,~O~derof.~olice represents the police lieutenantls~ contract is currently under negotiations. There are no present labor disputes between the City and such~unions or between ~e.~!ty and aDyn0~TDnion.gmpipYee~~ affiliations or grou~s~~. [The rest of this page is intentionally left blank~ A-7 St at emen~ 'o-f Direct ' and ~ Over 1Hppi~ng ' (~as of~ September.30;~ 19~9,') General DEB~ Net Gener~l~ ~Ob:~i~ Bonded Debt.. Non-Sel f= De~t~; Self- --S~pporting $35,478,741 Totat Direct .Debt. $I~8,433..6 ~9, $i9,012', 268 $~.;3625 ,~66 Loans ImprS~e~ent Revenue. . Public B~ilding Corp. Reven~e ......... Be~ch A~qufsiition (1986) . p~blic~provement Revenue 2 ~M ! i~ve~ent ..... 32~7~ ~en~e (1986) . . . wa~e~ &~ sewer Revenue. . A~p6rt'~Reven~e ...... $87i245,000 $38,610,000 67~619,840 22,955~000 32,695,000 860,000 1,105,000 30~995,000 $121,315,000 $190,290,000 school Board.of Palm Beach CS~nty~eneral Obligation. $303,245,000 Palm Beach County SoIid Waste Authority Revenue Bonds. . . Total O~rlap~ing Debt $390,490,000 $156,229,840 $420,000,000 $731,605,000 Overlapping Debt Applicable to the City (3.76%)(2) $ 12,680,412 $ 5,874,242 $ 27,508,348 Total Direct and Applicable Overlapping Debt $ 31,014,187 $ 24,886,510 $ 70,133,714 (~) Includes Accreted Value of the 1985 Bonds that are capital appreciation Bonds. (2) The 3.76% used in determining the applicable overlapping debt represen=s 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 debt for both the County Government and the County Solid Waste Authority. SOURCE: City of Boynton Beach and Palm Beach County. A-8 Debt Ratios (as of September 30, 1989) 1989 Taxable Assessed Valuation (City) . .$ 1,690,133,573.00 1989 Preliminary Estimated P.opulatio~n (City). . 47,451.00 1989 Taxable AsSesSed Valuatzon (co, unty) ..... $44,894,656,220.00 1989 Preliminary Estimated PoPUlation (county) . 865,507. oo Direct General Obligat$on~.~ebt ~per Capita . . 386.37 Obl~g.atlon Deb~,sp~r Capita.: ......... 653.60 of Taxabl~ AsseSsed Valuation ~ .~ 1.08% Direct and' Applicable Overlapping General Obligation ~nd N~n~$~ :S~perting Re~en~e Debt as a percent: Pa'~ Beach County A-9 Financial and Statistical Data _ ' ~ Comparative Statement of General Fund Revenues and BEGINNING FUND BALANCE REVENUE 'Taxes ~ Taxes Expenditures Fiscal Years Ending September 30, $1 1986 Grant 1 Revenue Rents & uies Misc. Reserved/Des~ignated Reve. TOTAL REVENUE EXPENDITURES 2, 8,67~, 555 333,424 2'60,474 457,198 146,759 230,D54 3~4,645 401,93~2 ~'0~, 527~ ~ 2 ~ ~9~5- i~g~ ~9~7i01 ' ~ ~ 48,~873 52,031 137,24'5 9,168 9,927 12,5'81 102,724 57,882 98,318 88, ~28 299 , 682 135,0I~ $15,888',136 $18,410,349 $19,030,59~1 $22 General Government Public Safety Public Works Culture & Recreation Capital Outlay Grant Expenditures Other $2,394,752 $3,318,417 $4,666,846 $5,837,283 8,594,051 10,303,719 11,257,296 12,770,084 762,351 759,194 766,133 845,123 2,700,459 2,995,272 3,208,025 3,538,949 219,243 556,590 374,483 769,365 260,474 481,116 143,461 431,931 641,164 TOTAL EXPENDITURES REVENUES OVER(UNDER) EXPENDITURES Net Transfers ENDING FUND BALANCE $14,931,330 $18,414,308 $20,416,244 $24,833,899 956,806 (3,959) (1,385,653) (2,676,~84) 308~747 266,864 754,952 1,20~,237 $2,499,516 $2,762,421 $2,131,720 $ '663,973 SOURCE: Financial records of the City A-10 pension Fund · . lanS. The fireman and . -~^-~mDlover pension .~ .... ~1 other full-time ~'~T has three slng~= ~ ~ ~d substan~la~ ~ ~erves for The ~1~= il.^~ed by separate pla .... ~ retirement plan. ~ refund ~r~e~an a b the h~- re covered Y ~ ~ er future p ~.~. ctuar~a~ ~ ~0 ees .a · ed to~OV at~onS in a .~ty~ e~P ~ ~--~ are d~s~gDat ~ ~-~4es. and var~ . --~ funds as e~S' .... ~on con. t~ibut~OnS,schedut~U-.beloW reflec, tinformaulu~~ · · enc~eS are .... deferred, obligatt°nSlo ee assu~pt~Ons. The . The actuarlal d~c~hrou~h employer and emp Y December 31, 19~9- , vet 30 ~i~h are' being 3u~?~,~tment revenue.- Police F~reman Date,~f actuarla~ valuation To~a~ ~ens~on benefit obligation available for ~assetS Net ~ benefits, at cost Net 3as~setS available for ben'fits, at market value UnfUnded pension benefit obligation (based on plan asset ) i~n~st ~rate a~su~to~e used in'~tuarial valuau Retirement Trust Fund $20,506,195 16,319,650 17}026,156 Pensio~ Fund _ T2-31-89 $8,439,017 6,853,030 7,815,418 Fund 12-3~-89 7,722,569 7,753,519 623,599 420,696 3,480,039 10.0% 10.0% 8.0% Co~iburlonl to the 513,690 pl~ifor the year ended 635.650 ~--tion amounts were determined b~dt~eC~l~th~intherguidelin~ The con~r%mu -'cable Florida statute~ a~ ~-ard No 5. ~; liance with app±l ........ ntin~ standardS mu · e~ta~llshed by Gov=~ ....... BeaCh S~u~CE. city of Boynton A-il Growth Indices Population Trends: ~ Yea~ - - 1~986:: %': ' t:. -:45 fiDO'O, ~ .~,-:: : ~ .... 4.34% · - -: 5.15o 1987 49,258 '~'~ ~' 1988 52,110 9..~ -~30.28%' 1989 54,909 5 70% 831,146 5 27% 5.40% 865,507 ' :~ ~' t~n-:. ~.~:_ ~-~ 4.13% SOURCE: U.S. Cens~S-~a for 1960 a~ ' ~ B0~on. BeaCh Com~rehe--~-- - . nd i970 POnul~+~ .... est~e~. C .,,.~ .. ,~ annual F~nanc st~ma~es, C lty ~ ~ . . .~al Re o ~=y of ' ~ P°lm/~t~o~, C , ~.. , P rts for 19 1986-19S9 es ' lty of Bo '' ; 80, 1986 a , tlmated Cou~ y~o~ Beac~:~p ..... nd 1987 Po~la'tiOn; and Area ~ P°pulatl°n and for 19~o t~~ng~ Department ~o~ i~89 ~ ~ ~.u,~. ~onnlng Board of Palm A. ~o oho 1989 estima · ~. ~FU~a~l~hn ~ ~ ~each C~- ~ ted Cltv ' ..... ~ ~ ~- - ~u~uY rOt.estimated 1986~ Commercial Bank Deposits _J_in ~t h ou~s a ntis%) 1983 $226 .--~-~ 1984 300,562 1985 337,504 1986 492,059 1987 459,082 1988 495,791 1989 5t5,546 SOURCES: Greater Boynton Beach Chamber of'COmmerceand Florida Bankers -Association. A-12 ration Bethesda Memorial Hospital city ~of~Bo~nton Beach ~etal Products of Palm B&ach, Inc. Gulfstr&am Lumber, Inc. Mazzoni Farms, Inc. Dubois Farms M&R Farms Florida pneumatic Manuf~ Group Florentine Marble Co., Ma~or~Emplo~ers industry Electronics Hospital city Government · M~tal Products Lumber I~door Foilage Green~Peppers Vegetables _pneumatic tools cul~urea~Marble No~ of Em l~ees _ 1,700 1~200 696 125 130 150 525,/125'* 150'/130'* *In season only- **Off season source: 'G~e'aterB°ynt°n Beach Chamber of commerce. Building Permits commercial _Cons%ru~tio~ Number Fiscal of unit~ Valu~ Year_ I1 2,513,338 1980 10 3,098,117 1981 55 21,415,891 1982 132 10,834,263 1983 172 27,623,961 1984 216 23,540,518 1985 72 8,722,346 1986 28 18,622,492 1987 118 22,157,315 1988 168 43,849~763 1989 Residential Consnruction Number of U~it~ value 684 31,149,815 436 24,406,626 189 10,923,187 274 32,682,752 841 52,949,298 819 53,294,505 1,611 78,988,881 569 73,829,254 504 51,254,008 752 54,609,442 source: city of Boynton Beach Building Department- A-13 Name Boyhton JCP as~c. Qu~Rtum ASsoc~!~. Motorola? Inc~'~i~ Summit A~soc.~td. LandinqsApa~-~Qt~ Federated ~ePt~ ~St6res, Mahogany Bay Inc. 496 ,479 Beach County Ta~ Collector,s Off~ice~ ~s, estimated only Perce~t of Compi~l ed~ f.rom~i ?. ...... A-14 PALM BEACH COUNTY introduotion ~ Palm Beach County, Florida (1980 Census population 576,863 and 1989 preliminary estimated population 865,507.) is located on the southeast Florida coast, bounded on=~tt%e-,e~st by the Atlanti= ,Ocean, Martin County ~n .the. ~orth, Broward County oh the south and Lake ~e~hobee a'n~ He. dry coun~ On the running approximat~l~ 45 linear m~les':~orth~t~ south and ~3~ tinear mm~les eas~' ~ ~ ~ ~ ~7 ~n~orat m~niciDalities locate~ withi~ ~he .COUnty - .......... ~Some of~he.mn or five of which hav~ a curre~t..pDpulatloR of 25~?00 or more. . .... ~ ~ties include th~/City Of W~s~t Palm~ B~each,~the County seat.~Bell~_ ~1~.9~, ng~ near~~- + ~ __~_~ _~=~..~ah ~dountv's'~ a~ricultura~ ~activity ;-:~tke_ coastal cl~es o~ Boynton Beach, Boca Raton, Delray Beach and Jupiter, as w~l~a~ ~the g~oup 9f communities in ~e~--i~ediate West Pa~B~aCh. area referred to collectfvely as the "Palm Beaches". ~ ~ _ t Palm Beach County is reported to ~e one of the largest agricuI~u~al exceedings_ $~ b~ areas in the worl~ with total agricultural pgoduction ...... '~ '~ '~ dollars in 1987-i988. The. ~rinci'pal-oro~Ts of the area~ i~l~de ~S~ production and crop/vegetable production. Beef and dairy cattle production, citrus and tropical fruit and ornamental flowers are also 1.arg~ ~uomponents of the to%al a~i~ultu~al~ prOd~ctiOn ~of~ th~~ ~unty. ~ ~ Over the past two decades, the econ~y of the County has become increasingly diverse as the corporate cQ~unity has rapidly expanded and contributed to local economic growth. In addition to the prima~ tourism and agricultural industries, the principal segments of the economy include manufacturing, s~ice industries, and wholesale~, and retaiI trade. Major emDlovers include IBM Corporation, ~producI~o~mput~r e~ul~m~t, w.~h 5,100 emblo~ees; Pratt and ~itney Aircraft, a let engine faclll=y wl=n 7,800 em lo ee~' a~d.~SS6uthern~ Bel~, specializ~i~ in communications, with an empI6~e~t of ~600. In add~tlon~, a new MotorUla facility recently completed in the City of Bb~nton Beac~ employs 1,700~WrSohs. A-l-5 Employment Statisti=s Among the twelve largest non-agricultural private employers .located in Palm Beach County, together with their products and huller ~f employees are the fo~!owing: .. , Palm l, 2:00 ~omm~c iai Bank, t ~nt a-t um~CapaCitors 9~0 source:' Based upon 1989 Listin~ ~f Industries,,. Florida Cha~b0r of Commerce and DeJelop~nt Board '0f '~alm Bea6h County. In: Palm. Beach County.(in thousands)(1) ~ 1988 t987 ~anufDcturlng 35;5~6 35,786 Construction 29,.747 27,873 Transportation 15,725 15,098 Trade 90,902 85,486 Finance 27,778 27,753 Service 112,013 103,525 Governmen= 20,022 18,775 Total: 331,733 314,296 1986~ i985 1984 36,918 36,544 ', 32,:594 27,159 26,t82 '2~4,52~ 13,388 12,845 12,751 93,550 75,605 70,863 26,128 23~092 20,678 95,120 92,076 85,932 17,550 15,632 15,082 309,813 281,976 262,424 (1) AS of April 1. Source: Florida Department Employment Security° of commerce; Department of Labor and A-16 1989 1988 1987 ciwil Labor Force ~430.~ _ 408.9 395.5 Employment · 404.6 . _395.9 375;l /~.Unemploy~ent ~ ] . 25.82 ' ~.5 :21.1 Unemployment Rate 6.0% 5°0% 5.3% 1986 1985 1984 368.5 349.0 324.2 344.9 318.4 303.4 21.6 21.4 2~8 5.7% 6.0% ~'~%' :As.of April '1~~ ~ . S6u~de. Florida -Departme~t~::of.~Commerce, ~L~bor and Employment Security Srowth Indices Building Permits* (Total $ Value) (Value for Resi- dential Only) ($) Gross* Sales $ 1989 ..... ~,016,~995~ 707,701 16,443,983 i988~.~. ' ~,.85t,79~ . 1~223~62 ~6,3~8~254 1987 2,141,931 1,363,j318 14,662,643 1986 2,081,943 1,277,440 12,669,519 1985 1,854,601 1,068,442 12,449,045 * (OOO's omitted) ...... · Source: Palm Beach County Development Board; State of Florida Department of Revenue A-17 Y~ear~ 1987 1986 1985 1984 1~8~3 1982 Source: Palm Income United States Palm .Beach County Current Percent Doll~s~ o~ Ut2~S. $21,246 137.2% 19,938 136.2 19,014 13.6.7 17,662 134.7 15~42 '.12~g.6 14,156 127.4 United Fior~ida . _ States Current Percent Cu~r~n5 ~bll'arS"~-~ of~U.S.:~- ~fDo~ars $15,584 100.7% $15,484 14,630 100.0 I4,~36 13~898 99..9 13,908 13,, 029 ...... t0,927 98.3 13 University of Florida, baaed'on data-provided of Economic Analysis. Bureau of Economic and Business Research, by the U.S. D~partment of Commerce~2B~reau Commercial Bank Deposits (in thousands of dollars) as of December 31st 1988 1987 1986 1985 1984 1983 $495,791 459,082 492,059 337,504 300,562 226,552 Source: Florida Bankers Association. A-18 APPENDIX B SUMMARY OF CERTAIN PROVISIONS OF THE RESOLUTION , AppENDIX B ~_UMMARY OF CERTAIN PROVISIONS OF THE RESOLUTION not p~por~o~ c~pIe'te,',~n~-~ ,sub~f~n a~l:~spect~.J=o~ t~e provisions ~o'f. and is qualified in its entirety by reference to, the Resolution. . ~{~tan<t,,,~ m~ansJ~tl~e cert~fied~ub~i'C~ 'accountants o~ firm. u f certified public accountants employed by the C. ity under the provisions of Section 705 o.f :t Resolution to perform and carr~ out the duties imposed on the Accountant by the v~.~k~%edr~' ~nt"~ mean;-.wi~h ~re~pe~t to ;~ C~api~ga~: .~p. prenlat~On:~':,B°nds ~ any · f ~PR~it~ona~ Bo~ds~ ~ans the Bon~s is~sued~$%~ an~ ti~e u~d~r~ the prD~lSlDUS O Sedti~Ut~08~of thez~esolutlon.: ~:-~' ~ ~ ~ ; ~: ~,~n~al .Budget means' ,~.the >~Annual Budget '6f :; Current Expenses 'and Capital Expe~u=es,~adop%e'd purs.uant to,Section 503 'of the '~ 'IBrd-. Setr%ice Account" ~means% th~ Bond --SeTvice -Account. a -special acconnt crea~and:.a~ignated' by ~Sec~ion, 505 of the ,Resolutes. ' "B6~ds"~me~ns: co.l~ctively the Bon~. issued t. un~er the' provisions of Article.'I'I of the Resolution. "Business Day" mea~s- an~ day. other th~n .a Saturday or. -Sunday. on which co.er=iai hanks (including the Trustee) are open for business in the State and in New YOX~';] Newt~York~ and on ~wh~ch: ~he New York S~o=k Exch~ge is~ open, "Capital Appreciation Bonds" means Bonds the interest on which is compounded and acc~u~,a~ed ~t[' the r~%es ~nd' o~ the ,dates: set. forth in a Series Resolution and is payable' .~pon~ redemption or on the maturit~ :dat~ 'of such Bonds. "Capita] Expenditures" means all expenditures made for extensions, additions. improvements, renewals and replacements (other than ordinary maintenance and repairs),:' acquired, constructed' or -ins'tailed . for~ the purpose of preserving, ex~ending, increasing~ or improving the service rendered by. the Water and Sewer Utility or for reducing the cost of operation, and shall include the cost of purchasing and installing such equipment and appurtenances as may be necessary to meet ~he demands upon the Water and Sewer Utility; it ~shall also include the acqui~iti~ of such lands and rights-of-wa~: and ?-such engineering, legal and a~inlstrative expenses as may b9 requ~ red in connection with the foregoing. "Construction Fund" means the. Boy~to~n.~ Beach Water and Sewer Utility Construction Fund, a special fund created and designated b y Section 401 of the Resolution. '~]~- ~ ~"~ ~' - '.: ' _ t .._ .' ~ .i- ~ ~ ~- "Consulting Engineers" means the engineer or engineering firm or corporation at the tlme ;~ Resolution. "Cost." as applied to Improvements, means the cost a~d'-~X~a~s,: &nda~l]items ResolutienJ the Sewer Util~t~ of i?cl' or and impo~ed such of repair, (exc "Current Interest Bonds' "Defaulted InterestS' Resolution. · Depos~t~ry,~ 'means,any bank, mo~eys unUer tn~ provisions of the Re~olution. Expans~o~ Projects means 't~he. Pro]'~ct ~r any port,on ~here-~f~: ~r, an Im ' ~ ' · ~ ' ~ , Y provemen~s or a~ ~ort~on e~pa~di~g or ~onstructf~ of n ~'~addf ~i~ : ~ c ~ g a~e designed to expand '~ts capac~ty~ .:~ ,_ - ~-. Year" m~ans ~e co~encing on the , f,~ rs~t :~'day ~,of October and ending :, ioa t~, las~ ,t4a~ oZ ~he f~lIowing year ~:~s~.th~: s~e may. be ~ended from .time;tot time to conf ' ~ Flow of Fuhd~" means ~the amount'and ~im.ir~g of payments~o be made b~ the City Manag6~ from Revenues ~nd Impact oFee$~.to~,th~%credi~ of the'~Bomd~ Service Account, the Mandatory RedemptiOn Account, ~he.~'Reserve-Account, the :Loan Repayment Fu~d, the nd and the General Reserve Fund or any subfunds or ~nmwal and Replacement Fu ~-- ,~{a ACCOUnts and Funds all as = --~ished by Ser~es Resolu , ~ -' -'~na ~ 0 each ,Ser~es of accou~uS ~'~'~./ ..... ~,, ~ion~505 of,the Resoluu~o~ ...... t .... sh~ll be ,~ixed xnLt~al~Y o~ ~ ,_= .~ o~.~lut~on; provided, ~howe~er, '. ~ef~nd'~n Bonds, Y ..... -~, be ~n=luded~n ~ddxtmo=at ~r-. ' g ~ r.th ,abbve~ a~ provision shall · e~ch FIo~ Of~F~nde for-:~he ~oan ~ ~ z... . ,,, hei~g,entered,i~to, at~such t~ev -'~ ~: ~n~re~ed.a~d~Tg~t~d b~ Section,~O~ of. the ResolUtion-', ~,G~Petnme~Ob%~gati~ns~;~imea~s~ direct obl,~gatlons f the United States of ,, e Bo~n=o~ Beacb ~mpact F~e Fund~ a special fund c~at~d?and.~eemgnated by~e~tlon 505 {~l'~vI~t 'Peas"' mean~~at nonrefundable (except- .at the :option of the City) capital expansion fees, ut{lity improvement ~ees or other slmi~r fees and charges imposed by the City as a nonuser capacity charge for a proportionate separatelY , of' ~x ' nding, <over'sizln~,~ ~sepaTating''°r' constructing new ~h~?2 of ~he.:coet < ~ P~ . - ..... w~hout limitation the additions t~ the~ Water., and,~Sewer Utztzty, =ns g capital facilities charges established by ordinance No. 79-18, adopted on June 19, amended from time to time, but only to the extent that any 1979, as the s,ame may be , ~ ~Za ~n uev bt eervice''on~cne or , ' : a licable law oe~u~u ~ = ~ ,d~ ,s~dh" fee- o~ charge may ~u~. PP ...... 'nl~{^n and ~ny income fromm, the m~ Sermes 1of .Bonds li~e~d ~ - ~ - ~ other moneys transferred to the ~ : . ' $ in the ~mpact Fee ~un~ or z ~- xn%es~_~ent Of money -~- ~ ~n~ -~ ~he R*sotutmon. Impact F~e-Fund pursuant tQ~Se . , ~ '- ..... m~nts, renewals and replacements of the Water "Improvements' means suc~ xmFzu~ ~ , *~-sionea~d. additions: thereto as .... . :~ ~hereoz anu sac · and ~ewer ~t~llty o~ auy~ . · ..... ~it~ to keep khe s~me may be necessary or. desix~b~e, ~mn the judgment cz ~AA= ~ m' ion for the safe, efficient and economic operation thereof and to ro er condit , --~* ~ ~art thereof;' and shall P ? · ~' ~" d Se~er Utl~zty any ~u~ ~~ = integrate into the-Wa~e~ ~a~ ' - ..... , =~ ~ he authorized to be'~¢gu~=ed or incI~de s=ch ~land, ~etruC~tu~s and zac~5~eo = .... x-- co~structed~bY the CTty ~r the.provisiOns~Of ~orida law~and such improvements; renewals and replacements~of such land, structures end facilities ofbe thenecessuryWater and or Sewer U,tility {and such ~pxt~nsicns and additi?ns thereto as, may desi~able..for ~¢ontinuou~i,~6nd efficient serv~ce.?to the public, which shell be financed from the proceeds Of Bonds issued under the provisions of this~Resoluticn or the proceeds of any State Loan or from moneys deposited to the credit of the construction Fund, the R~neh~al and Replacement Fun~, the General Reserve Fund or from any other source or such extensions and additions thereto as may be added o~ received wltb or without consideration- · 'Interest Payment Date~' means s November 1 or May 1~ as the case may be; provided, however, that Interest payment Date may mean, if so provided in a Series Resolution or other supplemental resolutlon p~rmltted by the~Resoluti°n' such other date or dates provided,therein~or permitted thereby. ~- ~nter~est-.Requ~Tement5 f'o~r an}, Bo~(%vYea= me Bo~dPa}, ......... ~intereStYear n on: a~-t Ou~-~a~a] ~ Bon4~ .on~ : the' ~Ma'ansy 1 theinterest~n~ath~a ~s ~equ'r~. ~ed to a d o~he' November ] T~*. ~ _ · ~e t Date ~n such '~nv~s~nt 'Obligatio~s- mea s' -' er means such, N,et Rewenu'e s Revenues for. such~ ~riod for sBch period. · authorJ c~tj excess of t~he ~ven:u~ Fund, !' : ~ ~t Resolution, except: ~ .~ ~, ~ : : ~ (i) Bonds paid or redeemed or delivered to or acquired by the Bond Registrar,fer cancellation; (ii) Bonds~ for which the Bond Registrar= °r~ 'RaFi'~g/~Agent . shall hold sufficient moneys or Defeasauc~ Obligations the P?i~C~l ~ ~nd ~he~,interest ,on B-4 which, when due ~nd payable, will pro~ide/~ff~cient moneys to.pay the principal of, and the in~e=est and~ redemption premium; ~f any, on such Bonds to their maturity date or~ate~ or .dates flxed',fori,~edempti0n or to the date or dates fixed for their optional_redemption. providing for the:~issuance of auch Bonds..- _ "Principal" m~ans~ (i} ~with respect .to ~he _principal amount of any Capital Appreciation Bond,~ th~ ~ccreted~iAmount the=~of (~he~d~ffe'rence~between the stated amount to be pai~ at maturity and the Accreted ~mount -being deemed unearned interest) except as u~ed i~ the Resolution in connection with the authorization and issuance of Bonds and with the order of priority of payments of Bonds after an Event of Default, ~n ~whieb cases 'principal's' .mean~ the~i~ial p~blle offering price of a Capital Appreciation Bond (the difference between the Accreted Amount ~and %he~ini~i-al ~ubl~ offer~ing prlce being ,~eemed' interesting'but ~hen used connection with det~rm~nli~g.:w~9~the~ ,the Holde~s~ o~ the ~r~eq~is~ite p~inci~al~am°unt of Bonds then outstanding have given any request, demand, a~thorization, direction, ~k~-~ consent ~r' wai~e~, 'p~nc~pal amount~-~,me~the~Ac~etedA~°unt~ahd (ii) wit~ respect to the principal amount of an~ Curren~,~ntere~t Rond~ the ~prlnc~pa amount of such Bond payable at maturity. "Principal and Interest Requirements" for any Bond Year means the ,sum of the Principal Requirement and the Interest Requirement for such year. For purposes of .the def~inlt~on of !~rin=ipal 9nd Interest' Requir'em~nts" for Baltoon~ Indebtedness and Va~iabte Rate ~nde~tedness ~he following shall~apply: Balloon Indebtedness - the ~rincipat~and Interest Requirements on Balloon Indebtedness shal.1 be calculated as of any calculation date as including the ,amount~ of principal and interest which would be payable ~n, ~. given period ill such Balloon Indebtedness were amortized (1) from the date of such calculation over a period equal to 20 years, if ~uch indebtedness matures 2~ yeams or more from the date of such calculation ,or, (ii) if the period from the date of such calculation to the f~nal,maturlty of such Balloon IndebtedneSs is less than ~20 years, then the actual number of years to, maturit~ shall be used, o~,a' level annual clebt service basis at an interest rate, if such Balloon Indebtedness is not ~ariable Rate Indebtedness, equal to the actuat net interest cost on such ~Batloon Indebtednes~s,~ calculated without regard to this provision~ and if, such Balloon Indebtedness is Variable Rate ~ndebtedness, bearing a ~et interest cost calculated- in ,accordance with ~he methodology established for Variable Rate Indebtedness. B-5 ~ariabte'~RateIndebtedness= the-Principal Land Interest Reguirements~ on~ J~ariable Rate ~-Indebtedness%shall becal~ulated~by assumin~rthe~%~ interest rate thereon for any future which the actual interest rate cannot yet be rate b'orn by pew~ent.] .:Bonds (c) the amount required to be deposited ~Bond X~ar~.~ ~- ~ - -~ ~J~j~c!t~' me~s the Water and Sewer ~tillty frbm ~the procee provisions of Section Z07 of of ~the C, ~ of ~ Re!so,lution.~ in the Loan Repayment Fund in such tOrL~he described in the t(~ he ~;filed pursuant to "Renewal F~Und means the Boynton Bea~h'W~er~.and Sewer Utility Renewal and ~d . and des~gnate~..b~< Section 505 of the Resolution. "Reserve cc0~nt ~ means the Reserve Account, a special ~account created and designated by SectiOn .505~o~ the Resolution. · "Reserve Acco~%nt Depositi~Requirement~' means (a) in each of~th~ sixty successive proceeds of such~Ronds, an amount equal, to on~-sixt~th (t~6U~] ~of the difference between the amoun~ on deposit in- the Reserve Account prio~r to the issuance of such Series of Bonds ~nd ithe Reserve Account Requirement to be i~ effect immediately following the is'~ance of such Series of Bonds a~d (b) in '~ach of the twelve successive monthsf~eglnnlng, wi~h, the month foll~wlng?any~ month in which an~ amount %1/12) of the def~ci*ncy created by such ~ithdrawal iuntil such deficiency is made B-6 "Reserve Account. Insurance ,Policy_ m~ans, the ineurance policy or suret~ bond d~poslted ~n.the Reserve Account 1 lie'u%~f-~r- in pa~t~al substitutio~ for-~ash on deposit or to be' deposited'therein. "Reserve Account Requirement" as to each series of Bo~ds means, as of any date of calculation, an , securities or Reserve Account Insurance Policy specifted~n cailc succeeding Bond Year Bonds outstanding. but ia thei ~s of any 'date ~ef .Inte~est~Reguiremen~sln the ~ext ~ment, .on accoant of a~l ~ ~-Re~enue~ Fund!' m~an~,'~th~B~ynton~, Beach. Wa~e'=,~a~d Sewer ~tili~ty, Re%enue ~Fu~d,' a Spe~a~fu~d,,~c~eat~dland£d~ig~atea ~'b~ Se~tio~ J5OA~'f:,%'he-, ~Res~'lu~ti~o~ '~ ~ ' ~ '~ ~ · ,"Revenuers'. me',ans cha~ges ~a~d ot~er inc~e,-~re~eived by the its ownerships, or rived by ~he~City from Utility, any , or any ;part !ld~~ in Impact Fees', ~payments.~o~ ~ ~ew'er ,improvements, contrTbutions in aid, /~ent of moneys in the ~ "~ . ".Sinking. Fund~ m~s; th~oyn~ton~ Beach. ~Wat~~ ~and. S~e~ U~!ity Revenue~' B~nds ~nt~t' ~nd Sinkin~ Fund, ~.~}s~cl~l~ fund ~eate~,~and ~d~s~gna~d ~b~ Section 505 of "Stat~ Loan" .means a loan[ frOm~ rheoStat,of F~9=~da ~o t~e~ City pursuan~~ to any State of Florida Loan Agreement en~ed ~i~to put'ant ~ t~e Authority ~granted by Article VII, Section 14 of the Florida Constitution and Section 403.1834, Florida S~at~es, or any legislation ~co~ti~u~g ~uch author~i~y~ ~ - ~ Water an~ Sewe=. ~t~l~t~. means, c~llectivel~, -~e existing~ wa~r trea~ent aud d~str~butlon system~ ~and w~stewat~.~ colleuiton ~d~ 4isp~sal~ sys, tem owned: and operated by the ' ' .... ' ' ' ' ~' ~ C~,~ .~lu~th~.C~ty S joint A~e~est w~th the City of Del{ay Beac~ Florida, in · the~ reglonal ~ was~ewa~r trea~e~t' plant:, togethe~'~ with the Pro~e~t a~d any ImprovemeUts ;~ ~ ~ E~change of B~s. Bonds, upon surrender thereof at the principal cOrpo~rate tr~s.t~ offl=e of the Bond Registrar, together with~ an, assig~ent~-dul~ exe=uted by the ~Holder or his attorney ~ or legal representative i~ ~uch ~ fo~ as shall be satisfactory to the Bond~R~strar, may, at the ~tion of ~e Holder thereof, be eXch~ged for~an equal aggregate p=incipal ~ount~.of Bonds of the s~e series"and maturity, of any denomination or denominations authorized by ~ this Resolution and bearing interest at the s~e rate as the registered Bonds surrendered for exchange. B-7 Reafstrat~on~of Transfer~and OwneDsh-i? of Bonds. The-transfer of any Bond may be ,registered only .:uFon the books~ kept for the registration .,of transfer of Bonds upon surrender of such Bond to the Bond Registrar, together with an, assignment~ duly executed by the Holder or his attorney or legal representative in such form as shall be satisfactory to,the ~Bond.Reg~istrar. ~ - -· the Facil] Resol Reso~ a the ~ ~it~ cit~ [gned by the Director of Finance to effect that either (i) the amount of Net )r rat~s ff ~. df t~e B-8 Revenues for any four consecutive gua~rters~ in ~ the preceding ~ix quarters ~(.oalculated on a Fiscal ~ear_ ~basis) adjusted in. the manner provided in_Section 208~;d)(i)~(1)~ cf the Resolution shalt not be less than 115% of the maximum amount of Principal and Interest 'Requirements for any Bond Yea~ thereafter, i~c,lu~ng~,~he Re~ndlng .Bonds. but np~ ~ct.u~ingtan~ k~ond~_ ~a~ :,s~all,~o ~.~l~ng~r~ 'be.'~~ '~standing as ~a ~.~es~,t.,i' ~,~t~e: ' applicat~h~ 'of proceeds of' ~ the ~ R~und~;~-Ho~d~, ~, [(ii) tth9 p~incipal tand~!nterest' ~q~remen%~.o~ ~e ~u~s~dlng ~Bonds, for, ~a~ Bond shall be le~s than 0r equal to what such Principal and Interest Requirements would have been for each to may de~i~er; a,~ew eubsti~ution~for,~ satisfactory I~ case any Bonds shall become mutilated ~cause :to be%exec~ted~ and the City Manager and tenor.in exchange and substitution such mut'i~lated' Bond~ or in lle~ of and in or lost~ upon~ the .holder's paying the th~ City ,in connection therewith, and. in the ~i.th~the~ Cit~ Manager evidence ~ayed ~or lost. and.-of his,ownership satisfactory te it. Effect of Callin~ for ~edemutlen. O~ the date so designated for redemption, notice having been published, and f~led ~n the manner and under the conditions hereinabo~e~r~ided,, ~ ~<socal'te~!!for re~e~p~io$ shal!~,become and~ be due and~payable 'at tbe~ re~e~t~o~ ~m~¢e~oyided for redemp~ion of such Bonds on such da~e,~.and,~ mo~e~s fo~a~men~ 0{~ the~redemptlon ~rice ibelng- held in separate accounts by the Director ~f Finance in ,t~ust"for the,~holders ~o~ the Bonds to be redeemed, all as provided in the Resolution, interest on the Bonds so called for payment of the redemptio~n price~ the:~eof. Bonds Called for ,.Redemntinn-~ or. Payment Provided Therefor Not Outstanding. Bond~ ~h~ch ~haue been ~ty ca~led ~or redemption or with respect,to which either irrevocable instructions to call for redemption or to pay at, their respective maturities and mandatory' redemption dates or any combination of such redemption and payment have Deen given ~by the City to the Director o~f Finance, in form satisfactory to him and for the payment of the redemption price and maturing principal amoun~te:of which and the interest to accrue theree~ to the date fixed for redemption or .the.dates of~ their respective maturities and mandatory redemption dates sufficient moneys. ~or~Defeasance Obligations i~ such, amounts, bearing interest at such rates and maturing (without option of prior payment) at such dates that the proceeds, thereof an~ ~he interest thereon will provide sufficient moneys, B-9 shall he held in s~ePa~ate accounts by tt~e~D~:rector of Finance in~tr~st solely for the Owners 6f the~Bo~ds~ ~0 b~ ~edeeraed to be ontstand~ng Under :the ~?0visions of ~his R~sot~t~n and Sha:li c~se~ ~0 be entitled to any benefit or security ~nder th~s Re$~lU~ otl~er ~han to r~de~ve payment from such moneyS. ). ~ : . · th~ her~h provided, except suc! ~' .(~) isignedby~bheCity ~anager;~ duly desi~a~ b~ him for such ~urpose and 4 . :.~(1):~that obllgations ia the stated amounts have :.h~en.:~nc~re.d~b~ the City and.~that%eaCh:'~:item thereof is a p~oper charg~ against ~'~CO~tltUc't~n F~nd an~ has not ~een 'p~d, ' ~- ~ ;~(2)j':thah there has not been filed with or served, upo~ !~h~ City ~otice o~ :any lxen,:, right to: lien~, or attachment upon, or claim a~fe~t~t~he :right to receive ~aym~t ali' any o~ the moneys payable to any O.f .the.. p~D~n~s[, fir~s ot corpora~i~ns~me~ ~n such requisition% Which'has not bee~ releas~:~!o~i.will not be released slmnl~aneo~sly with the payment~ of such dbllgation, ' i-~ : {' :(3) that such requisition contains no item;rep'.ne~eht~q 'payment :on account of any retained percentages which the City is at the date of such certificate entitled to retain; and B-10 '(c) a ce~fmcate, attached t~ such requms~tlo and signed by the Consultlng Engineers,' certifying their ,apprOval ,thereof. Ti~l~ to Properties Acquired. The C~ty"?co~enants that the Project and any Improvements will be constructed on or unde;r land which is owned or can be ~acqulr~d by the City in fee simple or over or ~der which the City shall have acquire~ or ~ich:',~V~% ~a~i~all~: a~¢r~e ~f~e~' :~pdfi [he Ci~y'~ ~i~ht-- ~o u~e' such land properties for the puTposes Intended or which have been adequately guarded aga~i:nS'~ by a bond or other form of indemnity, or lan~, including public streets and High, s, ~ r~h~ ~o*use and occupy whx~: for such pa,~po~es ,shall-.be~vest the Cxty"by-law et '~ v~'lld .=xp~s of way,-easement~, fTan~x~es or l~c~ses~ i: - . ~,}ea~t once ~n-each twelve (12) mont monexs then on ~eposit with or ~ the n~e of the DirectOr off Finance or the City a~a-~ ,~curity ~qt~t~6~r?'~~ all '~isb,¢rs~me~¢~ m~e rth~ref~o~;~ Repdrts of e~c~ ~audxt shal~ ,~be --fx~ed~-'~'wlth'~ the ,D~ector ~ Fl~ce ~ the Consul~q E~gl~eers. Cop-l~s~ of such 'audl~,.r~porta~ ~ s~all,= be fxted wl~, the ~ity Clerk. =s~s~tzo~-of Construction ~ Balance. When t~e' ~struct~on of the Prelect or ~'~Imp?ov~n~s~ sh~lt hav~ b~'~ ~omp~'e~:d, the b:a~'~c~:-ln the XConS~ru'ctxon Fund not ~eserved by the Clt~ for '~ ~pa~ent ~' any '~n~ng- par~ ,of the' Co~% of Pro)e~" :t or such Improvements shall be transferred to SuCh ~u~d or Account hereunder ' ~' ~ed b~~ th~ D~-~ecto= o~9 ~e upo~ lnstruc~0ns ~.~r0m t~e c~-.Manager in ~ upon' a wr:~ten op=~i-OR ~bond c~se-I to,'~th9 effect that suc~ transfe~ or ra%:i~n wrlt ne~-cause t. he ~nteres~ on th~ 'B~Has' ~ ~y' thereof' to become balan :e attractable ~-to Exp~ns'~n :Projects" (as ~ d~t~mned ~, by the Con~ltmng Engii~e,rs) shall be transferre~ to the Impact Fee Fund. ,~nual B~oet. ~e C~,ty~ '.covenants-that on ,or-be'f~e the f~rst day of each Fi~: Year it ~wi'I1 ~ddpt,,a ~ag~- bf* c~r~nt Ex~e~ ~n~~ c~p~al Expendlt~r~s for such Fiscal Year (herein s~etimes called the "Annual Budget"). Copies of the an~-Budge~ sh~ll"-b~ f~,.~%h th~ ~%ty Cle~r~,~ghe.-D~-tor of F~nance an~ ~ai~e~~ b~3~e' City'~ ~1-1 ~':W~6 s~ail have -flied thelr:n~es and 'addresses ,I~,,Xor a~ reason the C=~ s~al5 not have adopted the, Annual Budget before the ~1rs~a~~ of-any F~scal Yearw,the Annual Budget for the preceding Fiscal Year shall unt~ Cth~ aflop~on of-the. Am~u~l: ~udget, be deemS, to be ~n force and shall-be tre~ as ,the ~nn-ual Bu~get-~n~' tihe prov~s~ons ~rt~cle. T~e C~tv may at any t~me., adopt an ~ended or supplementat~ Annual Budge% for the ~emg~der of the [then-curre~ ,Flscal Year,-and the-~nn~a~Budget so ~e'nded or supplanted shall be treate~ as the Ann~at Budget: u=~e~' the~ prov~s~ons of thls Article. Cop~es of anx such ~en~ent or supplemen~a~ Annual B~et shal~ be f~led with the City Clerk, the Dire~ctor of Finance and mailed by the City to all ~ners who ,s~ja~l have filed thelr n~es a~d addresses-with ~Se .Ci~t~ ~leTk for such purpose. B-il The Cit~ f~rthe= covenamts that the amount ex~ended f~r Current EXpenses in any Fiscal Year W.all not exceed the ~gasQ~ab!a and .~eces~ amount, tkereo~, a~: that it Wilt not expend any ~ount for maifitena~ce~ ~P~ir ~a~d"0-pera~i0~ 6~ ~e [w~r and Se~er U~il~y ~n ~ss~ ~ ~he; t~ ~o~nt provide~ for Curren~ ~XRenses in the .AnD~al Budget~ < ~ , t? e~ces ~s case :eed B-12 occurrence,-so .char~c, terlzed in a certificate signed by.t~e, Cgneult~ng Enginee,rs ~ f~l~ wi~h :t~e City' Manaaer, and an insufficiency of moneys held for the greaxt of the -Revenue Fund to meet such emergency, moneys held for the credit of R~ewal and Replacement .~nd shall, be disbursed only for the purpose of paying the cost of additi~n~; ~x.~e~ions and i~ro~ments to the ~Water 9nd Sewer Ut~ilit~, the cost of unusual or extga~dinary maintenance or repa'i~s, th6 cost o~ rep~acements,~a~ t~ qost ~gf.~agqui~i~. !~stg~ling .~r. reRlaDing .~.~pme~t ~d Federa~.>~or .St~e ~. g.~ts, or. ~p~.ic~pa~e ~n., Federal ,9~t S~at~t a~S%s~a~c~. related to the Water and Sewer Utilit~ ~, ,If at :,an~ .,tSar.-:tk~ mot~e~s hel~;f, or e~e c,K~alt 6f ~.the ~BRnd~ Se~v~.~e %q~nt, the ~or the credit of the Renewal and Replacement Fund an~.,depo,~t ~9,~:the,~ Bond Serv~ce Account an ~ount sufficient to make u~ any such deficiency'; If ~at .1 be made R~newal the or the the credi~ to~ ~ay the. Cos% of !~ovemen~s~ ~ ~{~) to purchase or~ redeem ,~on~s, . - ('~) to /)ay the pri~cipa~ 0f an~ the in~e'~st on an7 obli~at~ions issued or indebtedness in?urred ~.~th~ ~ ~Ci~y '~9 pa~ the. Cost of ~Improvement~, ~hich O~ligatio~ wiil~ be junio~ ~d~ *;~rdi~&ge' with~ ~ec,~ to lien ~on and pledge of Revenues ~' ~ the ~0~ds i'sg&~ ~ ,~he~ pr~vis'i0~s 0~ A~ticle ii of the Resolution a-nd t.o tb~dobl~t~on ,~o-m~e ~he r~.gu~r~d depo~n the Loan aepa~ent Fund, ~ (~) to ~ake up deficiencies in a~ 0f the Acqount~ and Funds created by the Resolution in~ludin~ ~ahy d~fi~ie~ies, in ~e.Revenue F~d re~ui~ed for the pa~ent of~Curre~t Expenses, - ~ (e) to pay the Cost of any item qualifying as an authorized expenditure from the Renewal and Replacement Fund, B-t3 (f) t~ m~et chh{factual~ paymen~s-~o ~ny person for pr6~ding treatment~ and disposal'of sewage 'from the Water and Sewer Utility, and,~ ~ 6onsist~g of City ~ the~Water and Sewer Utility. the t Of - The timin~ of,:and the requmrement,~ ,i~ any, for the deposit of Impact Fees t~o the. Credit of the Accounts~ and Funds m~tloned :in the_ preceding paragraph ma:y be fixed by Serles~Resotuti0n ~t.'the sole e~4ection of the City in connection with the issuance of ~Bonds~ ~nde-~ ~Sectioa..208 ox~.~{09 of the Resolution; provided, however that in the event that the per~iodic~ de~its to the credit of- the Bond Service Account, the Mandatory Redemption Account, the Reserve Account or the Loan F~nds ~pur~nt tO ~S~ion~-5O-5 of~.>~e~. ReSola~on~ or pursuant tD t~ Flow of- Funds e`~t~ishe~.'by the~ ~i~es ~Reso~u~n. g~erning? a~'.~Seri~s Qf ~ Bonds Om ~nY~ ~Sta~e, bO~a~ the~,. ~ity co~en~am%s~ ~hat it~ .willY, make ~p s.~ch dgf~i~Cy , fgom a~ailable m6~s, ~i~f~ anYi'~t~e~ 7he~ &~he c~ed-it of ]the ~I~paC~ ~ee`.~u~ s.uhj~ct to ~e-s~e l~i~ati~s ~s ~e~~ fo=~h~ in.'~e' ~r~v~s~o~ ~on-talned- in the firs~t, paraqraph ~of~ this Any monks remaining to the credit of the Impact Fee Fund ma~ at the election of the City Se.applied: ~ (A) to fund an ~ount equal to the Expansion Pro~ect Percentage of the Pr~eipal ~and Interest ~Requi~ments~ for the next ~nsuing Fiscal Year to be set aside in a s~account in the Impact Fee Fund as a rate ~s~abil ~zation f~d and applied on the 20th day of each month preceding an Interest Pa~ent Date to the extent such .moneys a~e nee~d to-make up de~.icienuies in~ the ~maxim~~ pa~ents permitted;,~to be made to ~the credit of the Bond Service Account, the Mandatory Redemption ~Account, the` Loan Repa~ent Fund and the Reserve Account pursuant to the first paragraph ]of this Section; (B) to reimburse ~the C~ty for payments made from Revenues pursuant to the Flow 'of<Funds applicable to ,.eact~ ~Series of Bonds whict~ could i~ave been made from Impact Fees had sufficient Impact Fees then been' avail,able by depositing moneys to the credit of the Bond Service Account, the Manda%o~y Redemption Account', the Reserve :Account,- or the Loan Repayment Fund; (C) to fund a special subaccount in the Impact Fee Fund in an amount necessary as estimatgd?[b~ ~the City to pay al! Or any part of the cost of any Expansion Project; and (D)~ subject to the limitation set forth in the last paragraph of this Section,- to deposit to the credi~t of~ the, Mandatory Redemption Account any remaining Impact Fees, which moneys will he 2us.ed at the earliest date practicable to purchase ~r redeem iBonds pursuant to the provisions of Section 508 the Resolution in advance of~ their ~maturities or mandatory redemption .dates, except that the City may designate particular Series of Bonds to be purchased or redeemed from mo~eys in the Impact.~ee Fund beldame any other Bonds may be so purchased or redeemed. ~=~ Moneys Held~ in Trust. Ail moneys which the Director of Finance shall have w~thdrawn from the Sinking Fund or shall have received from any other source and set aside for the purpose of paying any of the Bonds; either at the maturity thereof or upon call for ~edemption shall be held in trust for the respective o~{ners of s~ch Bonds. But any moneys which shall be so set aside or deposited by the Director of Finance and which shall remain unclaimed by the owners of such Bends for the period of six (6) years after the date on which such Bonds shall have become due and paye~le,~ha~l upon request in writing be paid to the City or to such B-15 Officer, board or~ bo~as ma~ then be~ entitle~ ~ law to receive the same, and ~hereafter the ,owners of such Bonds shall ~look only tothe Cityor to such'officer) b6ard' or body, as,-the;case may be, for th~ payment:an4~ then onl~ ~t~the e~tent~of the amounts ~o received ~i~thout any inte~es,t thereon; a~d the~Director of Finance sha'll have ~ mespon~ibility with respect to such moneys.~ dates when for the be and the from' Account, the ~ve Account and the I credit of the Impact Fee Fund. COnstruction, Of ImProvements: Oneratlon Of'W~ter~and Seventy, UtilitY. covenants that ~i~t wl%l c0nstr~6t-the Project and any t~0vem~ construction ~f w] ich Bonds shall be issued, or fpr which moneys ~ [rom the pr~eas of~,~nd$ shall have ~beeU advanced' to the City plans theret~fo=e~app~o'i ~ : ~. ~ ed ~bp ,the Consulting Engineers and~ that ~ the ~ro~ec~ &nd,~ IS .uh~ Improvements. ~t w'il 1 of thei~at~an~ ~ewer ~tillty.: ~The City each pleFeo~i~fi~m~ ~{ or {corporation [with ,~hom it, {~ay ,contra ~ce:bond ln.,the ,,full amount of.~an~ contra( · ~25,000) z~ .amount, or 1~ l~,thereof, ,to Thousand Doltame} '. ' ~ Manager to ~ u~e performance of such contract marketable a mar~i Valu~i ual':]to th~amo~t Of,~sUC~ ,c'ontrac~ deposSt ~ of t st ~unds as prOvide~ in Section furthe~ c~-ei ~$ ~!andl 'a~rees that or £~rthwitn, sed,ur%~£es~ ~: ~:~ t~e~ co~t~act in ¢ comp~e~io~ securities! ~ 1 ~ave bee~ furnish~dl The C~ty~further covenants and~ agrees that ieach such contra~ ~or ~eonstru~cti~n will also p~ovide that paln~ents thereunder shall not be made by t~e City in excess B-16 of ninety-five per centum (95%) of curDent estimates except payment .of the final balance due under any such contract. Insurance. The City covenants that it will at all times carry insurance, in a responsible insurance company or,companies authorized and qualifle~ Under the laws of the State of Florida to assume the risk thereof, covering such ~proper~ies belonging to the Water and Sewer Utility as are customarily insured, and against l~o~s ~r-dam~ge~from~ su~ causes aS ~are~customar~ily.i~sured against,, by.companies engaged insimilar business. The City coF®n~n~Sotohat~:~Up~o~n any j!o$.s or~ day, ague ~9 any prop, ert$3e.s Of the Water and Sewer Utility resulting from any cause, whether or not such loss or damage shall be cove~ed b~ ~mu~a~e,~it~wi%l proceed with t~e rePairing,~ replacing or reconstructang (e~ther ~n accordance w~th the original or a different desi~) of ~e~ d~e~ .or~-.~des~re~d~pert~, a~ th~ :,it ~.~!t ~ fort~wit~ ,ce~ence and d~l,~i~9~pr0see~te t~e ~p~i~r, replacement or r~ems~r~c, tioR of ~e~.d~aged or ~s~r~.~pro~:t~- ~nleS~:, ~. S~tLI .~9~er~ine~,a~er.~co~sul,tat~o~.~ith the Cons~ltxng fo, r' a~d ~hali, to th~ extent ~c~ssary, be appiY~ t& th~ ~&ir, ~ian~nt 'or reconSt'ructiOn of ~e d~aged or destroyed property, and snail b~ paid o~t in the ma~r up~ov~ed for pa~en~s' from~the Constr~ction Eund. If s~eh proceeds ar~ mor~ cre~ ~f ~ Renewal an~ ~eplaee~gh~ Fund. If ~=ch p~oceeds sh~ll be i~Sufficient f~r~g~3pu~se, the deficiene~ ~a~ be ~supptled out of any m~eys i~ the Renewal and[-~Repi~ce~r Fund. · . ~ ~ .~ %~1 ~insuuance policies, shall be oRen to ,the inspection of the ~-ners and their rep=esen~at~ves at all reason~le times. ~ Notwithstanding the foregoing~p~ovisi~ns of this Section, the City may institute and~ m~intain~ fiscall~ so~nd and prudent self-insurance programs w~th regar~to such risks, as.sha~l ~e consistent with the recommendations of a qualified and re~i~n~ly recognized insuranceconsultant. Section 710. Recor~ls, Accounts and Audits~ The City covenants that.~it will keep the funds, accounts, moneys and investments of the Water and Sewer Utility separate from ali other fun~s, accounts, moneys and investments,of the City or any oi its~ departments, and that it will keep accurate records and accounts of all items 9f co~s and of all expen,d/t~res .,relating to the Water and Sewer U~ility and o~ the ~Revenues and Impact Fees .collected and the application of such Revenues and Impact-Fees, and of the-~umber of the users of water in each classification Such records and acconnts shall, be open to the inspection of all interested persons. The City further covenants that at least q~arterly d~ring each Fiscal Year beginning with the first full Fiscal Year following the date of. delivery of Bonds pursuant to Section 207 of the Resolution it will cause to be filed with the City Clerk and the City Manager ~opies of any revisions of t/~e ~ater and sewer rates during the preceding three-month per~od and an unaudited interim report, slgned by the City Manager, setting forth i~ respect of the preceding three-month period B-17 : (a) a S-eparate~ in~0me-and expense account for-the ~.Watet and :Sewer Utility showing the Net Revenues and a calculation show;i~g whethe~ compliance with Section 502 of the Resolution, (b) a 'statement of the number an~ classification or'the users ~of~the,Water .and ¢c) ~al~~ d~po~=ts to the~-cr~dmt~ ~f ~nd ~wathdr&w~l%,,frem~ ea~h Account cre&ted~ under the provisions of the Resolution, (~" a ~la~C~:~heet as of the e~d of~such three-~o~th:,p~r:io~; ~nd the with and use such facilities within ninety (90) days service is available. The City will not grant a ~o~t~ w~ ~tem or ~ewe~ system so lo a~y Subordinate - Ob~"i~atio~s. Notwithstanding . any~ ?ther proves!on R~l~iti6~ -the~ City -may i~'~ue ~'bbl.igations or in~r;,'iadebtedn~s~',ot~h~r ~n. t~e B~d~-and a State Lo%n fr-0m tlme<~to ~time whiCh,are pay~te the Revenues, but onl~ if such obligations are, ~by~ th~eir, te?ms,~ su~di~ ~in right to pa~ent from the Revenue to all Bonds and any such State Loan theretofore or ~hereafter issued or ~ncurred under the provisions 6f..-th~<Res~lut~o~ ~ ~ The Cit~ w~ll not render or cause, to--be render.e~ a~ ~n~ free nature by the' facilities of the Wateg~ and SeweT Utl~I~/i~,n~oT w~ll ~ r~%es be est~lishea' 'for user-s~ O~ 'the: s~':cla$'~;~ [~ City it~~ d~pa~ents, - a~encies and instr~enta~;&tieg :in ~he :-~id~: ~re~, .litles of ~the Water and Sewer ~U~ll~ty~, ~d~ ~h~ s~e to other customers =eceav~ng ~l~ke 'servmce~ under rates, ~' fees similar~ circumstances shall ~be charged to the City and any such departmen~t{ aqenuy O~n$'~r~en~llty.~~ Such ch~r~as wilt ~-be paid a~ theyi~a~cC~ue,-"and~'~t~: Ci~Y shall tr~f~ f~om~i~S ap~r6~rlat~ fu~g suffic~ent s~s to'pay ~uc~ char~e~~ ~"~' ~ ~ Failure to Pay for Services. U~n failure of any ;u,~er to pay ~0r services rend~red,~wmthmn nlnety' (90) days,~ the Cxty shaI~ .shu~ o~f t~e~ connection of such user to ~he Water an~~ Sewer~ Utml~tv and shall not Iur~sh B-18 rece.lve .furthe~:~ervi~ !until ail obtigatlons owed., , by.klm to the Cit/f on account of services shall.:ha~ beck, paid in fulL.-Thls: covenant shall not, howe~er, prevent the City from ca~slng - an~ connec~on to be shut off sooner. To the e~te~t permitted by ,law, the 'Cit~ shall nok~provlde any wate,r .or sewer servi~e to any.ne~ p~operty owner unti~ such time as alt:delinquent charges owed for services remdered t~ such.property are paid. ~ The City will diligently enforce and collect the ges for~lh~<~e~i=es-of.%the Wa~er and-Sewer Utility; will take all steps, actions and ~oceedings for the e~o~emeat~an~ collect~s~ of .such rates, fees and charges as s~all become delinquent to the full extent permitted or authorized ~b law- ' ' ' · y , and ~11~ ma~aln ~ac~r~e reco~d~ w~th-respect .thereto. ~ All $~ch ratea, ~ees, cha~es ,~an~ revenues berei~ ~tedged ~shalt, as collected be held No Sa~e oz Mortgage o~ Water~ ~ ' ' an~ Sewer Utll~t .~ a ~The C~ v , .... ~ ( ) t ~CO chants ~at so · ~ng as any~.Bonds ~a!l b~6u~S~aing'un~j~the.~p=e~isions of ~the- Res~!ution~ana e~ept~ as ~in the~~ Reso~R~io~ b~e~s.e'. p~e~it~d~ ~it~.will -~ot sell, lease ~ or otherwise dispose of or enc~ber the Water and Sewer Utilit~ or any ~art_thereof. The Cit~ may, however, from time ~".o time, sell an~ machinery, f~xtures, aDDaratus, tools, lnstr~e~ts~ or[ ~ther mo~abL~proPemt~ ac~ime~ b~ ~t ~n~ connection-~ith the Water and Se~er Utility, o~ a~'~m~~ ' ~ ....... ' t~r~ala-~s~ ~i~~ co~ec~Q~tkerewith, if the City shall determine taat suck a=~.cle~ ~re no i6~ger~ne~dea~r are.~no longer useful co~ection with the constructi~ gr' oper~a~on a~d~)~a~enance-o{ ~he Wa~er,~and S~er Utility~ ~aha the p~oceeds~{t ~eof p~operties so sold or dfsposee. ~_or saa~l.~, b~ ~b~ed ~to~ {he[the~'r~;laceme~tc~ed~t~ of°f the the Mahdatory Redemption ~co~t ~r ~] ~ ~]Zene~c~and R~I~a~Rt Fu~ at the option ~of City may from t~me ~to t~mefse~f, ~de or ~Se~ B~cb~he~p~operty loving,part of the Water and Sewer Utility as is not needed or serves no useful purpose in cQnnec~ion with ~he m~inkgnan~9.{7~.opera~io~ ~ ~ ~r and Se~e~ Utility and C~%y Council to be ~ne~]~sary~ fO~'~e Water~ ~an~S~r?~klity shal~ be '~posited to,the credit of ~the Mandator~,~R~demptiOn ~Cou~t ,~:the~Renew~l aha Replacement F~d,. as may be provided 'by ~u~h~j~eso~u~on. .T~} p~pe~ty received in~ exchange pursuant to any trade shatl~ be ~e.e~d ,to~ he ~a part of~h~ater~ and Sewer Utility. The- rentals under anw s~ch? lea~e ~,hRll be depo~te~',.t~.~he ~credit of the Revenue Fund. (c) Notwithstanding the p~rovlsions~of paragraph (a) ~of this Section, the City may from time to tim~ permanent{y abandon the use ~of; :sell,~trade or tease any property forming a part-of the Water~.and Sewer Utility but only if [ (13) there shall be f:iled with the City ~terk and. the Director of Finance prior to such abandonment,~ 'sale orilease a.cer~i~icate, signed by the City Manager and approved by the Consult~ngEngi~eers, stating (A) that the City is not then in default in the performance of any of the covenants, conditions, agreements or provisions contained in the Resolution, and B-19 (B)' that the Net Revenues-for ,the nex't preceding ~i.sc'at Y~ear, after giving effect' ~o such abandonmen=~ - sale or :lease: and- any"-,rep:t,acement' and after a'd~ustment to reflect .the, moneys which would ,have been , re~ei~ed:, if the rate schedule in-'effect on the: ~ate of s~ch' cer~ifi~at~ had been ~i~ effect?throughout ~uch: Fiscal~'Year. are not 1'ess than~one hundred twenty ~r ~cen~ (120%) of -.the maxim~ aggregate Principal and Interest Req~rements,~.f~r~. :any. ~ ~iscal~ Year thereafter, and ~ -,:~ (~)~:'the ~oun~ he~d for the~,credxt of the, Reserve Acaou~t ~s equa ~o the'-:Re~ve ~ccountaRequ~remen~. ~e ~'the s~le~of ~ foxing part o~-the Wa~e,r ~and Sewer Uti~it~ of t~ ~Sec~on shall ~e~t~r be L0~n~,~p6~isu~ :~hich: the,-obti~ation of the C~i~9~~ ~ and I~pac~Fee:~',by virtue of the-~10.an ~ ~he ~o;a~.<R ,~ent Fu~.unde~ Sect~o~ ~505 of.~he R~ . a~t,.% to'-c~un~%~g %p~ovlded ~t: 'the C~ty. shatl fxle~ ~i~i:~=~i~n,~d~ to- t~'o~ ~f~rn.ish~a pursuant to clauses ~(~), ~d'~; of the R~solution and such certificates shall evidence complxa~ce tests set ~rth, :in. said Section 208. For purposes of this ~ect~on and p~rp~t~.~.~3~e~eing ~pt~an~e ~ith the' %ests {set the adve.rs( i or ~the-' ?ig~ts of thc Owners Lo an. Until the :lien on Impact Fees created by this~,Resolution is r~eleased pursuant to this Sectio-~,~ the City shall maintain'in effect an ordinance ,p~rsuant ~ w~ch it will establish just-~an~t equitable Impact Fees taking~ into recommendations of the Consulting ~ngineers. The City shall enforce diligently its right to impose anal cotlect Impact Fees and shat'l, diligently enforce and collect the same. The~ City shall~not take any action that will.impair or adversely aff~ect its right to impose and collect Impact Fe~s. as ~herein pledged ~or ~imp~air. s':or adversely affect the pledge of the Impact Fees made herein or the rights of the Owners. Notwithstanding any other provisions in this Resolution, the City's obligation to impose, collect and apply Impact Fees in accordance with this Resolution shall B-20 terminate and the.~t'ie~' created 'by this. Resolution on such Impact Fees shall be r~eleased as eoon as-the total ameunt of Bonds purchase~, redeem~ or paid at maturity from Impact Fees '-and the ,total amount of .principa~l' on S~ate Loans retired from Impact Fees together with the amount of Impact Fees on deposit in the rate stabilization fund pur'suant to paragraph (~) of Section _514 and the amounts used to reimburse the Citl~' .purau. ant ~,to par~agraph .,(B).: of Secti~)n~ 5~14 ~gua~/ the Expansion P~o~6~Pe-rCentage %f the Original Debt ~mount-;. · Each of the following events is:de=:lared an. event of default," that is to say: If · (-a)- p~.~ment of the. p=incipai.~and~of the redemption premi%~m,, if any, of any of ~he <B~nas J~hall m~t be~ ~e' W~ ~ r r the s~e ~shall. become :due a~d .~ay~le, ezther at matu=i~y, o~b~ proc~e~n~;~for ~=md~ptien>0r~ otberw~se~ (5) -pa~ent Of' a~y; instant,hr of i~terest ;on a~y of the ~on~s shall ~not he made when the s~e shall become ~ue and pay~le; or (c) 'pa~en~ of any ~ounu required to satisfy. ~n~ Mandat~ry ~rti. zation Requireme~tUsha~ll notbe made, if required.herein;, or: (d) pa~ent of any:required deposit, to the Loan Repa~ent Fund shall eot be made which shall have the effect o~ the City no~t ~bei~ able to make an Annual Loan Pa~ent; or (e) .the City shall for any reason ~be .rendered incapable of fulfilling ~ts obligations under the-'Resolution; or (f) any part Of the Water .and Se~er Utility necessary for its effective operation shall be destroyed or damaged and shall not be properly and timely repaired, repladed or recon~tructed;.or Cg) final judgment for-:the payment of money~sha-ll be rendered ag,ainst the City as:a result ~f the ownership,;oontrol or operation of the~Water and Sewer U:tility and-.any such ju~gment~ shall:%not be. d/scha=ged within eixt~ (60). days~from the entry thereof or an appeal shall not be taken therefrom or ~rom the order, decree or process upon which or pursuant to which such judgment shall have been granted or entered, in such~manner ~as to s~ay the _execution of or .%ev~ under such judgment, order; decree or'process, or the enfo,rcement thereof; or (h) if the City admits in Writing its inability to pay its debts generally as they become 'due, or files~a petition in bankruptcy; or makes an assignment for the benefit of its creditors or consent.s to the appointment of a receiver or trustee for itself or -for the whole or any part of .the Water and Sewer Utility: or (i) if the City is adjudged insolvent by a court of competent jurisdiction, or it be~ adjudged a bankrupt, on a ~petition in bankruptcy filed against the City, ~or~an order; judgment'~or decree be entered by any ~ourt. of competent ~urisdiction appointing, without the consent of the City, ~ receiver ore-trustee of -the City or of the whole or any part of its property and any if the aforesaid adjudications. orders, judgments~ or decrees shall not be.~.vacated~ or :set aside or stayed within ninety (9~) days from the~date of entry thereof; o= B-21 (j) if :~the City shal~l file a petition-ur -answer, seekinge~eon~anization.:~, . any arrangement ~n~e.r ',the .Federal b~nkruptcy laws~ :or,' any ~herti~ ai~Pl}~cabte law. or statute of the U~i~ed ~Sta~es of ~erica or ~any s:ta~e ,t~ereof4~?~r.? ~'~ ~'z (k) if, under the provisions of any ' other : law fo~.~the:, ne~ief or aid,:of · or an s~bstant~l~,part~-o~ lts~_p p ~ .... ~ ~ Cxt~ or of ~e who~e ~ , . control shall not be terminated wlthxn n~nety (90) days from t~e date of ass~pt~on of s~ck c~usdOdY~ Or .Contr~l; orr[~ '~ ~" - :' -?? '~ ~ other of in (1) the Ci~ty shal~l default in the due the covenant~;: 6enViSions, ag, r eem~ nt,~ this :' Res0iut~6:n~a ~tl~e ~ continue fOr-thirty requiting same to be -~, the Bonds ~he~ out~tan~ing. : ~ .... ~-~ ' } ' ~ '~e~t-~ed Interest. ~- Aav interest% on any Bond~ that :is~'~F~bte~ but , ,,.~en~ of .~ ~ , ~ , ' xs not unctual;ly paid or d,u~. ;_~?ouide4,, f~, on .~y :~%~terrgS~:~D ("Defaui~d Intekest"} shall forthwith cease to be payable ~o th~ Hol~ as of the rele=~t :~e~.ul~f';Re,c~zd"-Date ~ solel~.~by vir~ue,-0f ~such H°td"r's~ h~ Ho~de~On such :~te; ~and' such ,Def~i-ted Inberest may be paid-~b~' ~.~i%'~;~at ,~its election in each case, as provided in S~paragrap~ A or B below: A.- The ~C-i%y may e~ect-to make~a~ent of~nY. Defautted,~I~te~est on th~ Bonds to the persons ~n whose n~es such Bonds ar~ registered at~-t~h'e'~ctose]{~o~ business a Special Record Date for the pa~en% of such Defaulted Interest, which Special Reco~d Date~shall~ be fixed- ~n the~ marker ~pecifie~ in ~the Resoi~tion~ B. The City may make pa~ent~ of any Defaulted Interest~on the Bonds ~in any other lawful manner not inconsistent with the requirements of any securities exchange on which~ such Bond~ m~yQ~e%~:listed and~ ~upon such no[~ce ~as may ~be r~vi~ed by ~uch ex~hange~ if.; after noti~e>~i~ven b~ the. City ~o the ~Bon~ .Registrar of~ ~he proposed ~ pa~emt pursuant to .thi~ ~paragraph~ ~uch pa~ent sha'll be ~em~d practicable by~ the Bond ,Registr ar~. ~cceteration.~of~ Maturities.~ HFOn the:happenlag and continuance o~ any event ~of default specified ~n clauses (a)~t~T~ugh (1) ~o~e,~ then and.i~ery such case~ ~he ~ners of not less than twenty-five per cent~ (25%) in aggregate principal ~o~nt of the Bonds th~n o=tstanding sha~; ~by~a notice ,in writi~ to~.-:the~City, d~clare the principal 6f all of %~e Bonds~{hen outstanding (if not~ ~then ~,~d ~payable) be d~e and pa~able i~ediately~, ~ upon such declaration the ~e~:sha~l ~ecome~and be immediately ~due and pa~le~ z anything contained, ~ ~ the~ ~Bon~s or in3 this Resolutxon to the contrary notwithstanding; provided that if at any time after the principal of th~ Bo=ds sha~l haue been so declared to be~ ~du~ anti,payable[, and bef0~e the entry o~ flma~I ]ud~t ar decree in any su~t; action ~2ar f pr~eedlng instituted on, account of s~ch ~e~ault, ~r before the compl~ion of any other r~edy~, under ,~his ~Resolut~On, moneys shall, have [acc~lated ~n ~he Slinking ]FU~d' s~fficient to pay t~he~ principal of al] mature~ Bo~ 'a~d' ail~ arrears of interest if~any, upon all ~o~4s ~en outstanding (exce~ %he~ pr~i~iPal of,any Bonds not then due except bY virtue of such declaration and the ~hterest~ aCcr~ed~on B-22 such Bonds since the last intere:st payment date), and all :amounts the~ payable by the?City under the~ ResoIu~io~ sha~l~have been paid or a sum_suff~icient to oay the same shall .~ave-been deposited-b~ the' Director of Finance or wit-h the-Bond Registrar, and every other default in the observance or performance of any covenant, condition,, ag~eme~n.t or ~provislon containgd in the Bonds or in the Resolution...(other~ than~ .e'~de.fautt in the, pala~nt of the Rrinc~pa~ of ~.Su. ch ,Bond~ .then due only because of a.~de=,.la=at{on un.der this.Settlor) Sh~lr!~ha.ve been ~r~medied, then and in every such case the Owners of not less than twenty-five per centum ~u~h.~ec~ara~ionaud and:/annul.suchj~e annulment sha.lt extend ~o or consequent thereon. centum (25%) in shall proceed to under ~ !aw, either~fOr { the Resolution o~ t_he~enforcementof a~poi~tment o~!~ a ~ece proceeding in a court of c~ ~he~.Bonds not then~du.~:~x=ept.~y3Vi~Ue of ~ri~te~ ~o~icg~-to~'~he~it~,~resclud i~s c.oA~.e~uen~es:,i ~u~ ~ngi'.S~h ~escission~ or -suhseq~en~.~ ~ef~U~ ~0~ i~alr anyri~h~ ~any ~=ent of pen ~,~&outstanding'~un4~~ Florida law, or ~ln~-~qult~.~or at ~er D/~ners. sha~-I deem rights.' -to : Pro Rata ADnlication of Fz~Id:,~.~,: If 'a'~ a~ tim~'bhe m~n~v~-{, e~ ..... ~ n~ no~ oe sur~xc~en~ to ~ay ~ P~'of,orf~he.~eres~n:-the <Bonds :~s the (a) Unless the principal of all ~the Bonds shall have become due and payable or shall have been declared due an~ papule, all such moneys shall be . lrst~ ~o. ~e. ~a~e~ 9f ~he .-per~on$ ~:en~i~e~ thereto ~f all xnstallments of inte~e~ th~n ~e an4 ~avab~. on ~,~- ~,,a~ : ........ such. installments become due and pa~le, and,, if the ~o~nt agailable shall not be safficient to pay in~ full, ~D~ ~a~i~ar~ ~n~allm~;~ ~t~en t~h.~, p%~ent~at~ly, without any discrimination or:~ ~ef~renc~ ~k-~ ~.~ ~ ~-2[ =='~=~i , respectave rates of interest~ spec,ified .in .~he~Bonds; .... ~. . -~: . to ~ payment, ~ b~e cPe~son~ _entitled: th~.reto of the unpaid p lnc%~al of any of the,~Bond,s:~hlo~ ~alt ha~; b,ec~me du~ (other. than BOnds called for redemption for the paymeht of which sufficient moneys are held pursuant to the provisions of the Resolution), in the order of their due date~, with interest u on such Bonds at th~ respectlve rates ~pec~fied~t~erein f~m the respective dates upon which they became due, and, if the amount available shall not,~e sufficient to pay in full the principal of Bonds d~e on any: ~articular date, together with such interest, then tO. the p~ym~t ~ir~t of ~c~,interes.~, ratably according to the amount of such- interest due on sqch date~ and the~ te the~ payment of such B-23 ~rinci~al~ ratably ac'cording %0 the amount of such principal due on, such :date;-to t~e pe~sOns:ent£tled',the~eto '~witheut any d~s¢~iminatien~Or"Preference except' as ~to any differe~b~'i~'-the '~esPectiv~ rat~s of interest specified in3~he Bo~s: and ~hir~: to>the Palanent' of the~ interest on an~ the principal of the sba of s~a] prc~isi~:ne ~(a) of · for be instituted, iha~ and No behalf of (which su ( inconsistent proves=one ~n the' remed~es, po~s~.~ a~thorit~ cenferred ~po~ ~b~ Owners, or ~ (c) to- ada to the conditions', issuance of~on~s~ ~nder the ~rcvisio~s th~ Re:S limitations and restrictions thereafter to be observed, or alfd othem~ c~d~t~ons. B-24 (d) to add to the covenants and agreements of the City- in the Resolution other covenants and /~agreements thereafter tO be Observed by~ the City or to surrender ~any right o~ power therei~ reset=ed to or conferred upon the- City, or~ (e) to authorize the issuance of any Additional Bonds .or Refunding Bonds pursuant to Sections 208 and 209 of the Resolution or the incurrence of any indebtedneSs~ Contempl~{ed::'-by. ~ec,t~ ~513~c),, Sectioa3 ~7~7 ~and~: .Section ' 718 of the ae~lu~i0n, ~provi~d~ al~ c~ndlt~o~s~~p~e:ceae~t~ to Sucks'issuanCe or' in~urre~ce~ ~re (f) tO au~ho~ize~the ~ua~ce ~hereunder~ of Bonds~.~i~ bearer f6rm~ ~ith coupons representing interest attached thereto~in~the, ,~anner cust~a=y ~prior to July 1, 1983. s~[~n~ng sha~, ~ave--~e-. r~h~:F.~,rom~-~,t~me '~o :-t~me, ~a~y~h~, con~ne~ ~ff the Reso~txon' '~tO :.~e coStr~p,'~no3~hs~a~i~, ~ tO cons~a~ ~ 'a~d: ~pr~ the :- adoption or desmr~le by the City for t~e purpose of mpdlfying, to or rescinding, xn any any the ~ Re~eIution or shall p~ the principal of or in the -princ~ipal ~nterest- ~Iiere0n, ~:or Impact Fees other than the preference or priority o any hedu~tion~4 ~ ~e such supp I%me~t,al th~ i~terests of Cessation of Interest of and payable ~ ~n ~ac~df~ce" redemption or e~ther irrevocable to p~- the-Bonds ~at~ res amy the Di%~e( premiX, if any, ~so ~du~ that nothing Df th~..maturi-ty_of or (b) a reduction the rate of r Resolution, or (d r Bond or Bonds, or (e) a f :a ir%d consent to ~oa~whi'cbi~is adverse.to the Bonds shall have become due called for Bo~ds for redemption or ~tion dates or 'to interest~and then outstanding shall :bei'~ald.0r i . gatmons,' not callable at the op~io~'of ~he: '/ eith-~'e -(~ and the interest on which when due or the principal of which when due Will p=ovide sufficient moneys, shalltbe 'held by an ~ '.tnstr~'t~.~,~,n: ac~ng, as. escrow agent (the '~eS.crow. agent".) f~r ~he p~i~ns~.~f the Resol~on, and provision shall also ~e'~made, f~r J .~' o%her:,<~"pay~}e ~he~eun~er by the City, then and in-'that i~le:~:]:~%~r~6~ the;.~ners [in the Revenues, Funds ~'~ the .'R6~6~%i°~ r:shall t~reupon cease, determine and' become ~uncz~ , i~ sUC~ C~Se, 'shaI1 repeal and cancel :~he Resolution ~inking Fund and all balances remaining in any r Funds o,= Dther ~h~ meneys held for the redemption or pa~ent of or c0=poas to any lawful purpose of the City as the City Council shall det~ B-2 5 . (a) Consent ~of.,%~BAC Indemnity. -Any .~p~ovis~n ,of the Resolution expressly' re~egnizing or. granting ri~s in or. to ~BAC-~. I~demn~ty-. ~ot: be mended in any manner which effects the ri~ts of ~B~C Indemnity thereunder without the prlor wri~e~ co~s~t of ~BAC Indemnity.. .~ .~ ~,~ be required ~eries defeasance of Resolution .Issuer~ !expe~'~e:, thirty :($!0)~;~ ~ if~ co~pli~n~ the, Serie~ 19~ 8. ~i Bonds, security fo.r -'will the ¸SO B-26 Notwithstanding 3any other pr~visien of the Resolution. the Issuer shall immedi~telyi noti~y..~AMBAC Indemni~y~ if'a't any time there are insufficient moneys to/make ~anypaYm~nt$~f ~principa!>and/Dr interest .on the Series 19g0~Bonds as requi~ted~and immediately upon the o~cur=ence of anY eventof default thereunder. (e) Defeasance of Series 1990 Bon~s. 'In the ev~t that the principal p~r~ant, t~ 'the3MUTlicipal Bond I-n~tr&nce Policy.-the S~rles ~199D ~ds ~shall remai~ and o~er~':~hl.lg~t~0n~ off. the Issuer to 'the' ~-~%~s ~h~i contlnne3 to exist ~nd sha~ (f) ~ r~Pa~e~nt.">P,r~cedure, ~ur~ua~5, to ~:Mu~i~,ip~l .Bond ~ Insur~ee P~licy. As (a) At least five (5) days prior to all Interest Payment Dates the Issuer or Pa~ing Agen-twil~. de~ermine whether.~her~ will,be sufficient funds in the fund~ andl a~0~ts ~s~abli~h%~i p~rsu~ti~.~o ~he principal of or interest on the 'Series ~998fBo~ on If the Issuer or Paying Agen~ ,determines tha~..khere willbe : a~ccunt~, the Issue~t6r ~&ying Age~ shall So shall speclfy the~.~amount which such deficiency!,is app!iua~le:.ana whe~he~ de'ficien~ as ~o prlnciPal.-~r'lnt~=e,~t. not so not AMBAC Indemnity wi~! Bonds ca or before the Indemnity shall~ haw such funds ~or ~tn~emni.t~. Such notice BonSs to be has Payment Date, o~:~hhe Series .1990 which AMBAC Paying~Ageat. (b) The :Issuer ~r ,Paying k gent, ~hal:~%:~'f~ g~v~ng not~ue to AMBAC Indemnity as provided in (a) above, make .avallabte to AMB~%~ I~demnity and, at ~BAC Indemnlt~'s diFection, to~ th~ :~hlted~ Sta~gs Tm~st CO~ 6'f ,N~' Yo~k, as insur trustee for ~BAC In~nlb~ &~ ,an~ s~cess~'~' i~,~)~1',~ ~ ,~- ,, ance T~us~"l ~ -__. J -~ ' h ' ' ~" -: 7~:W~%~ ~ ~'~ge~e Insurance the Resolutioa G, ~a~n~ to the~ f~Dds~'~9~counts ~s~ntalned under ~e Pr'Raying A~ent ~s.hail P:~ovi~-~MBAC I~demnlty and ~e Issuer Irknd~n~nsura c. Tm, ~_;sT~e wlth a l~s~ ~pf~;--ne~s,:~f S,r~.s !~99~ ~S entitled-to receive P ~ ~P : - nter~s~ ~ Pg~e~t.~,~d~from ~BAC ~ndemni~y ~der the~ terms, of M~nlcipal Bomd Insurance Polxc~. ~an~ ~B~7] mi~ ~ the Tr .... ' · ' ~ ~ -~ --~ ..... *-~ ar~a~g~n~S wlth the ~nsurance ~ ustee ~1; to mall checks or ~<~af~s to the ~ers of: Se~i~s I990 Bonds entitled to receive ~ full or pa~tla~ i~te~t ~pa~en~s f~om. ~B~C, ~I,n~em~i,ty and (ii) to ~rinci~l u~on Serie~,~1990 Bo~ S~rr,~nde~ed E~ k~k ~' ~ ~ ' h pay ~=~ x~u ~on~s entitled to receive full or ~-~]:--'2. . ~ ~ ~BA~ I~demnlt7. ~ principal pa~ent~ from B-27 (d) The ~Iss~er or Paying Agen~ sha~l ~at the': time: it. provides notice to AMBAC- Indemnity ,pursuant to (a) ,'above, ,'nOt~f~ ~Owners~ of Ser~ie.s.~-.Tg~O Bon~ls entitled to ~receive t~e pa~ent of prx~g=pa,1- or -~l~te~es~ {~.thereo-n'.-from ~C Indemnity~ (i)~ as to the:~f~ct~f such e~tit~l~ent-~ Cii)~tha~BkC~'~fnd~i~Y ~itl remit to them all or a part of the interest pa~ents next coming due upon proof of ~ner- ~ delivery ,to the e Trustee, in ~ehal] Policy, claims the p~incip~l~ ~ch Of a at,~the ' the to ~MB~C the ha~e helen made by the Agent and ~i~e~d~ ~nd ~h~ d~tes on which were made. ~ rights granted-~BAC~?~nity' ~er'~'the ~ ~ extent it m~-~$~:~~' ~r~e[:-~ of ~ ~ubrogated ~0 ~~ ~h~ r~ci~ent~ '-= ~= ~ ...... f the. ~Mun~~1~ Bo~ ~ns~nce s~rog~tlon (1) in the case o~f sub~e~at~on '~s to ,trar or Paying shall ~ote ~BAC .ned for past-due principal, tra~ o-r 'P~ying ge of 083090-3 4597M B-28 APPENDIX C GENERAL PURPOSE FINANCIAL STATEMENT OF THE CITY OF BOYNTON BEACH, FLORIDA FOR THE YEAR ENDED SEPTEMBER 30, 1989 No dealer, broker, salesman 'or other person has been authorized make any representations, other than as contained in the Official Statement, and if given or made, such other information or representations must not be relied upon. This Offic. ial ,S~atemen~. do~s~ not' constitute an 'offer to sel't Or the soliclt~ti6n of ~n offer to buy nor shall there be any s~l~e of ~the.19~90 perso~ 'in1 ~a~y jur~is~iction i5 WhiCh i{~'~u~%&Wf6i"f0r s~h ~r~:~n to m~ke such offer~ solic{~ation or sale. The~_info~Dtion contained in this Official s~atement hRs been 6b~in~d f~0m ~i~ documents, records and other sources considersd~ to b~reliable a~d~ guaranteed as to completeness or accuracy, ~s believed to be correct. A~y~s~ats~ ~i~is.~Off~ial~ Sta~ent i~v~lvi~ estimates, ass~ptl6ns an~ ma%t~s of opYn~6~ wn~n&9 o~ not expressly stated, are intended as such and not as ~r~p~esentatkons of f.ac~-/ a~ %~e ~it~ ~kp~ly'~R~s ~n6 r~p~e~en~K~'t~' sd~h estimates, ass~mpti0~s ~nd O pini~s~wlll b~realized~pr ~f~il~ed. contained in ~is Official StatemeRt, or a~y~ ~$~made he~e~der be~n no change in the e~f%~lrs of ~he clt~]~in~9~the ?a~e.hereof, IN CONNECTION WITH THE O~FFEaING OF ~HE 199D ~BONDS, ~E QNDEg~I~T~ ~y O~L~T oR~ EFFECT ~T~N~CTIONS THaT ST~ILI~E' OR~I~aIN THE ~T P~CE OF SUCH 19~ ]BONDs AT ~ LEVEL ~o~Ei~T~T~.~ZCS~MIGHT OTHERWISE PREVAIL~ IN~ T~/ [OPEN ~RKET. ~ ~ ~S~C~"~BI~IziN~,~ CO~NCED, ~Y BE DISCON~T~D AT ~Y TIME. THE~EXISTtNG~SYSTEM ..... ;.J ..... - ..... , .... WATER AND SEWER RATES AND IMPACT FEES ..................... 26 HISTORICAL AND PROJECTED REVENUES AND EXPENSES ................ 30 RATINGS ....................................................... 33 LEGALITY ...................................................... 33 TAX EXEMPTION ................................................. 33 UNDERWRITING .................................................. 35 LITIGATION .................................................... 36 AUDITORS ...................................................... 36 CONSULTING ENGINEERS .......................................... 36 RATE CONSULTANT ............................................... 36 ii MISCELLJ~NEOUS ................................................. 37 AUTHORIZATION OF OFFICIAL STATEMENT... ......................... 37 APPENDIX A -- GENE~L INFORMATI~N .~ C~TY OF' ~YNToN ~E~H' ~ND ~kLM BRACH COUNTY .... A-1 APPENDIX B -- SUMMARY OF CERTAIN PROVISIONS OF THE RESOLUTION .............................. B-1 APPENDIX C -- GENERAL PURPOSE FINANCIAL STATEMENTS OF THE CITY OF BOYNTON, BEACH, FLORIDA FOR THE YEAR ENDED SEPTEMBER 30, 1989 ........................ C-1 APPENDIX D -- ENGINEER'SSTATEMENT ON CAPITAL IMPROVEMENTS AND ADDITIONAL BONDS TEST ....................... C-1 APPENDIX E -- CONSULTING ENGINEER'S STATEMENT REGARDING IMPROVEMENTS TO REGIONAL WASTEWATER TREATMENT pLANT ................................. D-1 APPENDIX F -- RATE CONSULTANT'S STATEMENT CONCERNING RATE ANALYSIS F 1 APPENDIX G -- FORM OF BOND COUNSEL OPINION .................... G-1 APPENDIX H -- SPECIMEN MUNICIPAL BOND INSURANCE POLICY ........ H-1 APPENDIX I -- ACCRETED VALUE TABLE ............................ I-1 iii [~his ,pag? wa~er OFFICIAL STA~EMEN~ $33~000~000' City of Bo~nton' Beach, Florida and Sewer Utility~ReVenue Bonds, Series 1990 INTRODUCTION · ~'~:~Th~. pu~os~.~f ~hiS' Of~¢ia~State~ent, including th~ cover p~e\.a~a~tap~fces~ fs~o s~t~-~thce~t~in~informati~n.~c~ncerning ~he~s~le. by ~e C~ty of Boymt~Be~h, Ftorlda (the~ Clty~) of~lts W~te~ ~d~We~ ~ilitg ~Re~e~hue~.Bohds~ ~S~ie~ 1990~ dated.as of 6~t~be~ ~ ~'1990~I~kc~P~ f~ tb~ .199Q ~onds,~'~that, are~ Capital ApPr~cSation~Bonds~a~hich~sh'~I~ b~a~ed t~date ofdeii~ery), in ~ ag~re~a%e prih~i~al a~o~nt~ ~f~$3~, 000~ 000~k' (the "199OiBonds,) ~ The 1990 Bo~ds are =iiss~ed ~er- a~'~.secu~ed.lby..pursuant~ ~o Resolution No. 85-Y~Y adopted by the City Co~lssfon of the City (the "City commis~6h'(')~?~n ~oV~er/Jf9f~'~9~5, as .amended and Dle~ented ions No. 85-ZZZ and No. 85-~ adopted by ~ ~ 198~-an~AN~2 85~JJ~ adopted t~cean~d~ng forthe~de~a~s o~he ~i~h b~e~ ~9~5 ~ Bonds .... 85~OJ~ the bn £ile with thereto ~s and duties and ob~ig~ti'o~s o~:,:~h~ :~ !! , ~ ~!' ~: · ' T~e' t~990 Bo~d,s..ar~ltm~ted-. obl~ga~mons ~of the C~ty secur~ e~ati~-~a~d :~ab~" wi~ ~e'. City's: 6u~s~an~in~ ~.~ter and'. ~S~er Uti ~ ~%~.: y...~ Revenue .~ Bonds,. ~.~ ~ ,~Ser les? . 1~85 (the .,~,1985~ Bon~s~ ), w~tho~t. D~fe~e~e 0r ~o~ity-~ 6n~ bond ove~:;an~he~ ~nd. ~Th~. 199~ Bonds. a~d the ~ ~98D- Boa~s - a~e secured .and~payabl.e ~ sote~y fr. om c~rta~n ~revenues- of ~he C~ty~.s wa%er a-~-s~wer, u~ty. system ~e "System,) and certain a~ounts in funds and accounts held by ~e City i~ ~st for the benefit of the holders of the 1985 Bonds, the 19~0 BOnds % 9nd~ny Ad~ta~nal Bonds. ,(.~r~after ~col~ect~vely ~f~erD~o &S ~'%h~ ~Bon~") ~as more fullly.~scri~ed.~under ~the~-~ *Preliminary, subject to change 1 heading "Source of Pay~e~t~nd~Secq~i~y for the Bonds" herein. Neither the falth and credl~o~.~he~.~X~R~.p~wer of~he City, the State of Florida ~r an ~' ~i~at su~ ~,~on thereof shall be pledged to the%~paymen~o~the~p~ncipa139~?%mt~.o~ the 1990 Bonds. es with ~s Cur~ren~~BSds add sh~jl~l be thereof~ In d~-nomlnat~ons of $5,000 or thereof. The 1990 Bonds that are Curren *Preliminary, subject to change 2 dated O~tobe~l, 1R90, shall bear i~terest.~(payable..semi-annualty by ~eck' qn ~Ma~ 1~ and November 'ligf~ ~ack year CoI~me~cing May 1991) at ~e~esi~per annu~ set forth on th~ cover page hereof, computed on .~the basis of a 360-d~ year consisting of ,twelve thirty-day mo~t~s,' and shall matur~ 6n~November 1, of the years set forth below: ~. $ .... Current~ rest B~nds Amount M~turity Interest Rate $ ~ ~ % 1990~Bonds dat~ of their inter, est 1991 the years S ~ $ Accreted Amount at Maturity' Novembe~ .!, 2~016~ are a~lable.~o'the purqhasers represent' $5,000 ~matnrit~. .The ion..Bonds~shait'be ~a~'~ t~e ~n~ de~iv~y, Shall 'bea~ the date of ~ !~ Commencing ~ay 1, to ~elow ~subject- amou~ .on. November 1 of Capital Appreciation Maturity* 2016 2017 2 ~18 2019 2020 Bonds Approximate Yield Notwithstanding any provision to the contrary in the Resolution, the Accreted Amount of the 1990 Bonds tha~ are Capital Appreciation Bonds shall be considered as principal for purposes of determining (i) the redemPtkon pr-ice, of such 1990~Bonds.and (ii) the amount of such 1990 Bonds held at any particular time as outstanding by any owner for purposes of -the Resolution. For purposes of calculating the Accreted Amount of the 1990 ~Bonds that are Capital Appreciation Bonds with respect to matters referred ~o · n clauses (i) or (ii) of the preceding sentences, if the date of computation of the Accreted Amount shall not be an interest payment date, the Accreted Amount shall be the sum of the Accreted Amount as of the immediately preceding interest payment date (or the date of original issuance if the ~ate of computation is prior to May 1, l~R1), plus that portion of the difference between the Accreted- Amount. as of the immediately preceding interes~ payment date (or the date of original issuance if the date of computation is prior *Preliminary, subject to change d-ate including the date of cal( the hu~er Of the hex{ For so long as DTC registered owner of the 1~ on interest may be) to date. nominee, )., shall ~e the Bonds, of and any to - Pa f ~ faulted Optional Redemption The 1990 Bonds maturin~o~ or before November t, are not redeemable prior to their%~pective stated dates of maturity. The 1990 Bonds that are curr~]Interest Bonds maturing on or after November 1, are subject to redemption, at the option of the City, on or a~ter Nov~mb~r~l,'~~ , ~s a w~ol~ o~'~y d~te~ or in part on ahy inta~est paym~n~,~ ~t tb~ ~i~w~ng redemption pri~eS (~xpressed as perCen~es o~ the pr~hQi~m~un~)', ~ld~ accrued interest ~0 the.dat~ ~f redempti~h:' '- ~ ' .~ ' Redemptio~ Perio~ ~' (Dates Inclusive)~~' Re~m~tionPri~e The 1990 Bonds that are C~pital-App~eciatio~-Bon~'s are_subject to redemption, at the optio~'of the ~ity/ 6n Or ~a~{er November 1, , as a whole on any date or in part on a~y interest paymen= date, at the following redemptio~ prices (expressed as percentages of Accret~d' Amount ~s o~ ~he d~e Of'r~demption): Redemption Period (Dates~In~lus~ve), Redemption Price . . % No~.-~ptionat/ ~e~emption-©f ~ss tha-n~'all Bonds outstanding under the Resolution is permitted, except ~hat atl~Bonds~of one or more Series may be redeemed from the proceeds of Refunding Bonds° At such time as all of the 1985 Bonds shal~L ha~e ~een-pa.id .or deemed paid pursuant to the ~esolution, then less than all Bonds ~of ~ny Series ~a~dtng (-including ' ~t~h~ ~I990 / ,.BO-nds~) ~may be r~d~e~ed.~ ~If ~l~sS ~han~ all ~Bo~ redeeme~al~-be~lec~di~by ~Ot%by th~ ~f~Cto~~ o~Fin-&h~ a~ ~e may~ in hi~ai~crAtion, d~termin~ ~ 'The I990-~Bo~'.that-are O~r~ent Inte~est~.Term~Bonds ~a~u~g in.~.the-'year's L~.~-'~nd· >sHa~ ha~e the f0~.l~wing Mandat~y Am0rtfzation~ ~iremen~a~'~hal~-be~-~subj~ct 'to mandat~y redemption ~ p~r~;/~on ~ac~Nove~e~ 1. ~n~h~ y%ars'~nd amounts -s&t forth b~low;~ ~at~ ~p~ice ~e~at to~-~l~Og~?f the un~id >p~i~ci~l amount of~such C~rre~t Intsre~ Bohds bering redeeme~ interest thereon to the redemption date, and without premium: TERM'BON~D~ Year Mand~tgry · Amortizatioh'~Requirement~ Year TERM BONDS Mandatory Amortizat,ion!Requirement If, prior to any November 1, the City sha~l purchase for cancellation or redeem Term Bonds Or Term Bonds in excess of the aggregate Mandatory Amortization Requirement for such Term Bonds or Term Bonds, respectively, to but not including such November ~, such excess of Term Bonds or Term~Bonds, respective.ly, so purch~ased or redeemed and not pre.vio~sty applied.~s.a creditsh~ll be.:credi%~.DYer~.such~ of,the ~emaining mandatory ~d~m~tTon~at~s~f,o.r!such~ Term Bonds~ respectively, ~S' ~h& city '~mfi-de~rmi~' and shall reduce the amount of Term ~ondso~D redemptiontand due~respectively, Qn .is~h~' however, that no '~u~h '~c~ss shall be ~dft~i Term ~onds or Term Bonds suD redCmption0n aparticular November 1, a~er th~ ~r~B~D~s o~~ ~ ~Term BO~, ~esp.e..~etl~ ~ $uQh~ date~ha$~be~n made .... ~ ~ - 4 .... : ~ ~ ~..~ ~ ~d~subject to Provided, amount of mandatory t~tion of or BOOK~EN~¥-ONLY SYSTEM The Depository Tru~t.Coml~any ("DTC"), New York, New York, will act as secur-i-ties depo~it0ry ~e~ t~he 1990 Bonds. Upon the issuance of the 1990~-~0~, o~e' :~'~d' 1990 Bond that -~ a Current Interest Bond for each maturity and one registered 1990 Bond that is a Capital Appreciation Bond ~or each maturity will be registered in the name of Cede & Co., as nominee for DTC. So long as Cede & Co. is the registered owner of the 1990 Bonds, references herein to the owners of the 1990 Bond;~ ~shall mean DTC or its nominee, Cede & Co., and shall not mean the B~ne'~fcial' owners of the 1990 Bonds (as defined below) . DTC ~is a limited-purpose trusu company organized unde~ ~he laws of th.e~ state of New York, a !~ember of the · , g rporati n with~~ the meaning Federal Reserve System, a clea~ln co o of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934, as amended. DTC was created to ~old ~sec~rities: of its participants (th~ "DTC .Participants") and 6 .facil~ta%e~'~~ c~earance~ an~ settlement of,lsecurli~es .transac~ tions.-,amongi~TCSP~rt~cipants in su=h securities through electronic book-entry q~anges -in ~:accounts of the- ~DT~ ~ Participants, thereby elim~inating the need,- of phys~i~-al movemen% of securities. DTC participants~includ'e securities br,oker, s and! dea~ersb banks, trust 6 companies,~learing corpora~i-ons, and certain other~organizations, some ofwho~.(,a~d~or their r~presen%atives)'own.DTC. Access tothe DTC system iS~a~o~available ~o~thers such ~as banks, brekers,~ dealers'and ~rust ~6mpa~s that c~ear through or maintain a cus- todla~ reiat~i~n~h~p~wtth a DTC Participant, either, directly, or indir~ctly~h~?'I~dir~ct P~r~ticipants~). ~be~neficiai ~nte~sts~n the 19~Q BoDJ~s under.the b( may ~ record~ r~ive~a c~diti~baia~ce"in the (a will Or ap~ ¢ in ~hich and ~ :Tra~sfe~'s~ ~f ~.i~0 B~nd~s=~ilt'De a~tS'O~ ficia~owner~ tin,ed,- ~s Whe~i~y wiIt:?re~og~iz~<~DTC:or'tts ~minee,~s:the.ownerof~he Bonds f~D~t~ p~Dpos~s'~ihO~di:ng~ot~ceSD~S~s~ ':ConveyanCe of notices and other ~ommunidations by DTC ~o DTCPartici~ants~ b~DTC Participants to Indirect Participants, and by ~TC Participants and IndfreCtl'~r~icipant~? ~e Benefi6~'.~Owhers~'~-~'t~b~'i~go~erRed by a~angements~_mon~ D~C~, DTC.. Pa~t icOn,tS .~n~ ~hdi~e~ ~arti~ipants, subject to :any~t~tory an'd ~g~o~.-~r~"~!~hts 'as ~ay be in effect from {ime to ti~e. ~ene~idi~al °Wn~pb may desire tO-~make arrangements with a that affect such BeneJ payments, the DTC A~y-f~i~ure ¢ Patti of any not!~ce~:of affec~ DTC Participant or Participant so Which Of all interest · n writing by m~ be. ofaDTC ~fiCi~t Owner~ :effect'will not B~n~s ,called for DTC's a~consents requ'ir,~d,:t? be Resolution. ~Tc' wild:mail as soon aS ~po~ &!C~.'s votingiright~ credited 'to ~ei:r accounts o~ the :Co.-will~pr~vide istrar .gn~Cede the 1@90 Bonds payments of pri~ b~ ~made the 1990~Bonds. ~Upo~ , DTC. Payments by DTC will ~o f to is a with of t 19! the e~tuy a s~cces fo! pa~ may be designated by C ~ urre~t IntereSt will be 8 ind )r~at : that are on each May land November 1 by check mailed~by the Paying Agent on such dateS~to the persons whe~were~th~ ~qi~tered owners O~ such I990 BQnds as Of the~clos~ of business ~ ~h~ ~ift~enth (t5th) 'day ~of tRe calendar month immediately~ ~eeed,ing~uch~!in%e~est 'payment dates (the 3'Record Date") at th~a~dress~s o~ suchregistered-Qwners-thereef as shown end''the regi~%r~tion~ books ~of the City maintained by the BoD/d ~eg~St~ar~,~s Of %he~Ose ~f~busin, ess.ofth~Bond, Re~ist~ar on such Record~D~te;'~e~I~9~B6~s~that.areCurrent,~inte~e§~ Bonds ~il~ be issued only as fully registered bonds in denominations of $5,000 e ~h~eof~and~ ~he 199~0' Bonds that are ~ .of -delivery. thor.eof A~,te~d Amo~u~t a3nd SOURCE OF PAYMENT AND SECURITY FOR ~E ~990 BONDS -~wi~h th:e Revenues of the System The payment of the principal ~ of, premium,~ if ' any, and interest on the 1990 Boi~d~ wil<l~ be l~ayable ~otely f~om~and secured (equally and~ ratably ~i.th the 19~5~ Bonds)by a pledge of the Revenues cf the System.~and, to the extent hereinafter described, the Impact ~Fees and, subject, to' the application thereof as provided in th~'Resolution, amounts~in e~ch F~nd ahd Account established ~nder the Reso~lution excep~ fo~ ~the.~ Loan Repayment Fund'and, to the eXtent hereinafter, des'cr~bed~ in~ the Impac~ ~Fee Fund. The City is obli~atsd~ under the-Res,oi~'i6n ~o depos:t all Impact Fees into the Impa. ct F~~ F~nd.-Moneyi-~ the !mpa~t:~ P~ee Fund:~ay be~ used by the City for certain System related purposes, b~t the ~ity is obligated to make up deficiencies in the required deposits to the Bond Service Account,:.~anda~ory ,Redemption Account, Reserve Account or Loan. Repayment .Fund from :any moneys W~lch are available :n the tmpa~t Fee Fu~d, pr0Vi~ded, h6weverii tha~ the maximum amounts that may b~ depo~i~ted ~o th~'~ed~t ~f s~uch~ Account~ and Fund' from-the Impact F~e Fund li~l any' Fisc~91 ~¥,ear ~hall not~xCeed the Expansion Projects: Perc~:nt'age (as defi~d,below): of the total PrinciDal and Interest R~q~:i:r~m&nt's, :lot"sUch Fiseai Y~a~, The term: '"Ex~ans,ion Prelects percentage :s-deflne~ under the Reso:utlon as a fract:on~ the n~merato~ of ~hlCk ils-,the bor~i, on Of ~:the ,original principal amount 'of~ Bo~ds, and: the~.%~igin~ P~incipal amo~lnt of State Loans und.e~ak~ by thee. City, ~llocated: to ~Expansion Projects by cert~f~icat~ ~o~ ~the 'Co~s~,if~g EngiheerS a~ ,{he' time issuance of such:,~Bond~::o~'icio'sing. 6f'.:'~Uch~ si~ate Loan:s and the denominator of 9 whichis-~he .%he Resolution n~meratorof ~qual Bonds_ a~d all ~aking The an:-a~ount amountsof Ra:~e Covenant The City establish, and OF ANY has cover revise under the Resolu~ tion to fix, ime whenever ne~sqar~,~ mai~ta?~n~~ and charges f0~ ~h~ use of ~he which-~ ~wilt %al~ays, provide ~n £amo~t ~Ystem for ~such cop~es City in ac Should the City with the forego~ the~amount for ~o be ~he 1 to adjust its Rates and Chargers requirements of the ResolUtion, 10 t~he~ owners 6f~-:not--~leDS tha~n-10% ~of th~ ~principaI ~mount ,of all Bends then ' ~o~s~&nd~.ng ~ay ~i~r~t~itute an appropriate s~it~ to ~compel the city ~6 ~a~Us% ~itS Rates-and~Charges t~O~ provid~ the ~mounts described~ ~in cla~se~. ~(a~) ~and ~(b) of the preceding paragraph. Rese~e A~co~nt the ~f-~ ~se~ AcCOunt ~ a~~ :~amo~t ~ e~al~, to ~h~ Rese~e~ ~Acc0unt ---=- -- ~~2~ir~"~e~e~'~;t° ,each ~er~es~ f~r' ~e b~nef~t ?fjthe ~nohders ~f~the Bond~ outstan~in~'L]'.. ~rTh~ Re~e .A~Ount R~qu'~r~ment'' is an amount r ~Rese~e Fund Insurance Policy not less than ~men~s the ~t~ Reserve or ,~th%~ average ~n~e Account ] i respept to the for~from ,a~d~i~n o~:~h~p~0ceeds Of t~e a commitment from AMBAC Indemnity for ~ ~p61icy of municipa~ bond to i~s~rethe p~Yment when due on the 1990 Bonds effective as of Bond~ ~Under~the ~er~s of the to the United States YOrk or any~successor i~n of. the principal~of which shall become Due for Payment Policy) but shall be unpaid by reason ~in the .Insuranc~ P61icy) by the City. · pa~men~ ~the .Insuranc~ TrUs~e which 'su~ ~incipal and interest ~ [fth (~!~)~day hext~ following-t~e } shalI h~Fe- received notice~ef ~ .The, i~Urance will extend for , Once is~'~ed, ca.not be ~ancelled 11 ~The · Ins~Brance~.~ol~c~y:,.%willl ~?iDsu~!e~ p~$'n~ p~l,y .on ~stated ma~u=~ty da~es ca~ ~inki~9 f~und ~ns~at~nt ~d~a~e~ ~?t~ ~D~a~e ~o~ principal ~?: ~d~ v 0~' ~ated, ~es? :for~ p~y~t ~ ~ ~im% ~t~e ,~se ~of inter~t..-~Z~ -wi!~: '~0~ iDsu~ p~a~n~ qn~: ~c~i~6R, :~'~s~ ,~ :res~ of a call for redemption (other (ban sink~hg fun~'~e~m~t~on~ 6r as a result of any other advancement' of purp~ 12 registered owner's rights to Payment to the extent of the insurance d~Sbursements so made. ~ AMBAC Indemnity is a ~isconsin.dO~iCil~d stock inS~ah~e company~ regulated bY the InSurance Department of the .State of Wisconsin, and licensed to do business in varioUs ~ta~e~,' Q~h and .as of of ~f that of AMB~C pursuanB domesti~ tax under in income~- ~ At~BAC Indemnity s f~nanc~al state~ents..prepa~ed ~n th statutory accounting standards arg'~la~l~ ~from %~. The address of A~AC ind~i~y~'s administrative t~'t~i~R6~9 O~b~r 9~& 0he~ s~ee~ Plaza, 17th ~e~ty 'h~ -entere~ into ~u6~a:- sha~e reinsurance :d~:wh~Cha.~e~pentagei0f ~e ~s~rance underwritten · ~.:, ~,~±:l~qe.asSume~ D~'a.nu~r of foreign and a internal .$gation i:income insurance ~EBAC I~demnity those contained for~federal payments were .A~.~ .~i~i m~e'~ '~o re~r~se~t~i6~: re~arding the 1990 Bonds~' tha~yisa~ilt~ ~f inves6~hg in' th~ 19~0' Bonds and makes no re~senu~lgn. ~eg~.~!~g~ no~ ~as it partlclpated in the prepa~$o~'!9/{.~ the 0f~i~'~'lStatem~ntother than.the ~formatlon 13 supplied by AMBAC Indemnity and "Municipal Bond Insurance". Flc as 14 accrued interest or capitalized interest from the proceeds of suc~ ~on~s$ :for ~s~ch ne~t S~cce. eding interest payment_and ~next maturing~ i~st~llment of principal, respectivellz; (b) to the credit of the Mandatory Redemption Account an amount, which, together with the amount, if any~ concu.~tly deposited ~er~in from ~th~e I~mpact F~ :~d~'wil~ ~a~O~e~eTfth :(~fl2~h~ of~ ~he~Princip~l amount~of M~d~tory~ ~e~ ~Bonds of~ e~ch ~:Se~ries~ then outstan~ng required to be retired, in satisfaction of th~ Mandatory ~ortization Requirements ~ ~i~ an~- for such Bo~d Year, plus the premiums, if any, on the principal amount of~ Ma~dato~y"~er~B~nds.~which~ would be payable ~s~h ~B~nd Ye~. if such p~incipai am~ount ~f~anda~o~y Te~ Bo~ds~.~re .~ ~o~b~edeem~d ~ Pri~ t~ thc,ir :~resp&~tive ~m~t~ities--,from~mb~ys2~eld ?f~r~the-~ credit~f. ~t~ ~ink~i~g Fund.; "' - fi-: ~' ~q~(c)~ wit'h'~he.Fisoal- Aq~t =o. the credit .of the R~s~.~Acco~t,~S~-ch.~oun~,· if any, ~-: any balance ~aInir~g after m~klng ~h'~":deposit desc~ibed~: in clauses ~a) ~and ~.(b:).' above %~or ~ ~ent~e~.~alan~e~ if.~ess.than the conc~r~e~%ty ~d~po~ited th~ein from th~ :Impact Fee Fund wi~-Z~be re~ir~o ~-.:~e~unt ~e~osited in s~h mont~ t6~he'~R~i~cf ~he Ress~e~Account equal to tke Res~eq Account~ Dep~os~it -~e~uir~eht for such month; . '(d) tothe cr~it .:of th~ Loan Repayment ~nd, such a~ou~, 3 if any< 'Df~'~ny.ba~anc~re~inin~~ afte~~ making the ~epostts de~cribe~ iq =~uses: (a)~;~ :~b)~and..(c).above (or the en~ire~.~b~l~e ~f less tha~' ~he'~ ~equi~ed ,amount) whi;~ to~g~er~ with the amo~nt,~: if an~; conuurrently dePoslt~d~ ~e~eln_~om the~ Impact Fee; F~'~ will be ~q-Uire~ to: ~a~, ~he ~mo~t ~'d~eposited therei~n ~ e~at th~ Monthly ~sta~e ~Loa~Re~i~ement, if any; (e) to the credi~ of the Renewal and Replacement Fund~ such amount, if any, of any balance remaining after ~king the deposits ~escribed ,in clauses (a~ , (b), (c) and (d)~ above ~or-the -entire balance if less than the re~ired amount~ as may_ be requ~ired to make the amount deposited in~ such Fiscal Year to .the~ credit of the Renewal and Reptace~nt Fund e~al to the amount, if any, recommended by the Consultin~ Engineers pursuant to the Resolution, to be deposited to the credit of said Fund during such Fiscal Year; and (f) to the credit of the General Reserve Fund, the balance, if any, remaining after making the deposits described in clauses (a), (b), (c), (d) and (e) above. If the amount deposited in any month co the credit of any of the Accounts or Funds mentioned in (a) ko (d), inclusive, above shall be less than the amount required ~o be deposited therein 15 under the Resolution,'~ths.~requirement ~her~fOr.~a~t! ~ve~heless be added to the~amount~o~her~wise~requi~ed~,~_~.~pos~.)ig each month thereafter until~such time as a~l such de~ici~n61es ha~ been made Upo Lal in cured Finance, a certificate forth~ set h ~s~ (ii) in kized four and Interest Requirements the oAddi~ional ~Bonds, J f th~?: p~s~d~-Additio~al :,Bo~d~. The ce~rt~ficate.to be' Si~n~d[by:,:~h'~ cons,u~,t %g-.ED. ~irfee~r.s must set ~0rth-~(a)--~he estimat~-~ '~ate :on~'~hi~. ~ ,~oV.e~gnts'~:-~to be financsd by th~ Additional: ~0~ ,wiltk be pZ~e( i~n bp~t~gn and (b) ah .estimate .of the additioRal ~Net, ~ve~ues ~ b~.~e~e~ed on accou~ of _Such Improvements .~n~z~t~ f~.s~ ..~' B ld ~e~r [~lowing the B~nd Year in which such ~I~ ~0~ements are,~St] ~ted~z.t~ placed In addition, the te~s of sach of the f~llowing tests must be met: - Test 1: The Net Revenues, as-.,d-e~e~ined ~in ~he manner referred to in the certificates of the Director 16 of Finance and the Consulting Engineer described~above, for the four quarter test period must equal at least 135% of the~m~imumPrincipal and Interest Requ4~lrement fo~ all outstanding B~dsa~theAd~itional Bond~ ~or which s~ch test is appt.ied for any Bond Year thereafter. -- Tes~2.. The Ne~t Revenues~ as determined ~n the ~ 3 . ~ m~nn~ r~f~e~red ~o '~in t!le~ ~Dir~c~tor of. ~inan~e~cer~i~icate · a~d~lCO~s~!~in~Eng~e~.Qerti~icate des~rib~ abo~e, for ~ the fou~ ~arter -~est Pe~iod mus~ ~ exclusive~ of the ~ ~ ~djus~eDt~ ~e~rre~~ 66~ ~fh~-6ia~s~e ~b~ ~6~ ~%~e~.~e~Su~t~n~ En~ine~cer{~f~i~des~cribed~ab~$~j equai at'~iea~t ~5~ of the maXimu~ ~i~cipal a~d i~tSre~{ Re~uir~men{' for a~ny Bond .year a~%~ ~e issD~anQe~ of~ sug~ AdditiQnai~ Bonds.~ - ~ -~THE~ 199~ -PROJECT ~ The ~ 19-90 _Pr~ eut con~sts ,~f the a~9-~is~t-~o~ ~and gons~ruc~ion dis~r%~utl0n ~$a~tie~nd~the~wa~atD~U-~c~ectiQn and dispQ~al f~cil~ties ~in~?.the~ amounts -est~ima~ted , iR ~the~ Engineer ~ s Report~ c~n~ained in ~ Appendix D-~er~to. < Th~/totat~ cost of a~ll such i~pro~ement~ has b~eh e~iA&~ed by ~e~ ~'~s~ Qonsuit~ng engineers t~ be apPro~kmatei~y $2~69~3~i. 0~0J '~?~he~.6~nS~til~g ~e~gif~ee~s ~aue e~mat~d ~at ~he ~pr~v&me~t~s- t0 t~e~ ~w~t~'~ t~ea~ment and di~trib~tio~'~s~tem ~Yll%~a6coun~ f0~ &9~ro~km~ely ~9'% of such c6s{s and~ the-~pro~e~t~ltQ'- ~ '~%~atg~ ~liecbion a~d disposal system will account for approximately 21% of such costs. Water Treatment and .Distrlb~tion Faciliti~s~-'~ Additions to~ the City's water treatment and distribution s~stems will be funded~.from proceeds of~ the'~1990 Bonds and Impact F~es. These ~costs include (a) ~eplacgment ~ of ~softening basin i~ternal mechanisms an~. ~ .~lnstallation'~ of a ~ata acquisition and cQDtrol system at~t~e-Citi~s existing east ~ater treatment plant; (~] c0nstr~g%ion of a ~ 4 million gallons p~r~ day (mqd) ~embrane softening water treatment plant, ~pandable~ to 16 ~mgd, tocether w~th a~ companion ~ate acquzsltion and ~Dnt~ol s~ystem, on a site owned by the City located in ~e western ~t~-Df the se~ice area; (~) installation of pumps, connective pipingland controls for four new wells to supply raw water for the new water treatment plant; a~d (d) const~ction of finished wate~ains for connecting the new w~ter treatment plant to the water distribution system and for zncreasing of certain segments of the water distribution system. The aggregate of the anticipated costs of completion of the improvements to the water treatment and distribution system ~s approximately $23,331~000 17 a~er Fa~iIities Wastew ' ~ ~ In~ ~1974 ~ ~t2he'.~Ci-ty entered into an ~r~.oCa~-~g~ee~ent with the adja~eh~ '~ity~' of~Del~ay Beach~ ~.F~O~i~(the~ "~terl~ocal Agreem~n~ ') for ~he ~vfsion of% -Wa~%~a~r~O~atment, 'sludge disposal and effluent disposal on a leve~. The Interlocal a Central withir The~~ portion of ity an two ~t~d as Contracts have at the cost been $2.5 mit~] 18 '~' ~ ~ES. TIi',IA. TED SOURCES ~I~'D USES OF .FUNDS SOURCES: ~ Principal;Amount of Bonds . .Ac~r~ed-<I~terest _ ~ TOTAL SOURCES: Construct~ion-Fun~ Reserve Acc~un~' TOTAL USES: (i) (1)~ · nc~udes Under~rite~s'.~, discoUnt,J, bond insurance premium and other costs:of.issuance. OTHER~CAPITAL-FRO~ECTS ~akday~capacit~. They can ~ supplemented with rec~argewells-t retard saltwater intr~sioh · ~ existing_ well, s., ~ The ASR technology can maximize nee of~-the total.existing plan~,capacity on~a year-ro~d basis, enhance'water qualitY, .and ~ugment-av~ilab~e, Sh~?ll~!~ ~acquifer wel~l flowsund.er dro~ght~con~it~ions. -Comp~e%ion-of,ASR~and~'~shallow aquifer recharge facilities is~ :l~nned to be fu' . ~ " · P , nded~b~ s~u~¢es of revenue other:than the- proceeds [rom that 1990 Bonds¥- amd- is scheduled to be operational-i~ ~991. ~-~ The City has begun developing the West Welt Field_ by successfully drilling 10 production wells, which was paid with jfunds other than,.the 1990 ~onds.~,~.T~e:2urficial aqUifer is the Source,s. ~f thes~ Wells, ~hicb.~i~i _S~pD~Y ~aW ~a~er to the. proposed West~WTp, a metmbran~ so~ten~ng~plantlt~a~uis~schedul~d to provide an.initial treatment capacity of 4 !,mgd:b~June, 1992.,< As the. West-.WTP is exp'anded'i~eyo~di~i~l cgp~c~ty t~.8mgd by the~year 2000,.~nd to an:u~tim~ie, d~si~ capacity of 16 mgd by b~ildou~, the remainder of the newly 'dr~ll~ wells in the West W~li ~ield will be fully developed and ultimately augmented by supply ~rom the proposed Nicktes Road Well Field. Improvements financed outside of ~he 1990 Project are underway to allow the East WTP to operate at a treatment capacity of 20.5 mgd by mid-1991. A data acquisition ~nd control system, which is 19 included within the~1990 ~]ect, will tln~the~E~ WTP to the new plant to be constructed on the west side of the City. To prepare for anticipated regulatory guidelines, the test programs to investigate two alternative chlor~ne dioxide and ozone. The preliminarytimetabl!e is estimated to require an alternative system~%t~ the first quarter of 1994. ~ The new membrane part of the 1990 of i6 of the associated needed to system will as link 2000 rei~ d~amete e~her.r~ in ~994 ne~ {FDER). the year 2~00~ which is served by a 1.6-mg storage tan~]~ expected to projected to increase conditions.i!~i~Y~.the ~ea~ improvements~,.and~further be requiredl'i .on of 2000 20 .;, .= ~ DEBTSERVICE, REQuiREMENTS Set forth below are the amounts of 9rincipal~: includi~q mandatory redemption of Term Bonds, and interest coming due on th~ I9~.0 Bonds, 9~.~the~-total-~.de~.se,r~ice on. the~ 1990 Bonds and the 1985~ Bondsl~-n the" bond yea~rs~n~icated: -. ' ....._ ~'~::~ ,. ~.~"~ '~'~L~. Total Debt. Tota~ Debt~ ga~e Bond Yea~ E~'~inq. L~tg~n~<,~1990~B6nd Set,ice.on '~Ser~-c~on Debt November 1 Principal Interest 1990 Bonds 1985 Bohds Servic 1990 1991 1992~ 19.9 1992 1999 2000 2001 2002 2-003 2D05 ~0D 6 2~007 2008 2~010 2Oi2 2~i3 2015 2016 2017 2 201'9 20~20 ~'THE CITY~- The City is a municipal corporation organized and existing under the laws of the State of Elorida. The-City is-~ocated in Palm-B~achCounty appro×imatel~: ~3-, miles south of West Palm Beach and 30 miles north of Fort:Lauderda~e. The City is governe~ by a Comml.ssion=Manager. form.o~ government and'employs both a ~ull-time 21 ........ · , ' ' finance, who has city manager and a ~ ~ll-t~me", dive.or ~ o~f~ responsibility for all internal auditing and financial record k~euing operati6ns of the City. ~ ~ ~<'~ T~e major segments~ of~ the economy-of~the area ~ r~ail and wholesale trade, real e~st?~e~> ~f~aR~e~ touri~-~3 ~]a~rl~u~t~ ~rofessi0nal ~se~ice~, ana~ light manufacturing. ~ ~S~T~eral light ~nd ~jies%~aDe loea~%d~i~ ~th~ city, wi~h manufactured ~oducts THE EXISTING SYSTEM General .... The City provides water and wastewater services geographic area within Palm Beach County about twice the size the City itself. The water system includes facilities for ~raw water supply, water treatment and water distribution and serves~tl~e City, the Village of Ocean Ridge, the Town of Briny Breezes,~l~a portion of the Town of Hypoluxo and several unincorporated areas;~ Wastewater services include collection and transmission and provided to the City, the Town of Briny Breezes, the Village Golf, a portion of the Town of Hypcluxo and an unincorporated section of the County. Through the Interlocal Agreement previously defined herein), wastewater treatment is pTovided to~e service area at the regional wastewater treatment faciliti~'s located in Delray Beach. The 1988 resident population was approximately 68,000 in ~he area served by the water system and in the area served by ~e wastewater system; the 1988 peak seasonal populations for ho~h service areas were estimated to be in the range of 78,000~i 79,000. The estimated seasonal populations for the year 2000 are approximately 117,000 for both the water and wastewater systems. By the time the service areas 'achieve buildout, populations are expected to reach approximately 142,000. The -ser~vice~,a~ea for the City?s ~watsr system and its wastewate~:cotlectionand;.~=ansm~ssion system is i~lustrated lin Appen~i'x'~ ~heretoz ~The city may ~extehd~its boundaries in the future,through annexation of unincorpora~ted areas, o,f. PalmBeach 22 County, w.hich!~p~!mar_ity~ lie to. the, west of current City .limits.' Curreht .Cit~qpol~icy is t0 'limit' anhexati0n~ ~o ,the west to~ a~eas ease of~ Lawrence Road~</~.~Beca~se .ail, Of~ the a~eas %t~a~ may be annexed a~e a~ready ~encompassed by the water ~ wastewa~er service areas an~ connected- to' the wate~ and ~astewater systems, ,ann~ati~n is ~ot e~ec~ed~ ~o, have~ an effect on ~t~'~ and ~aste~a~'e~:se~ioe The City's water and sewer utilities department is divided a~m~st~atlve~ y -tnto ......... nI~ ~ administrative ' ~ - ..... ~ , ~ ~ ~ n ~%v~s~ons a~d~ e~ :~ at~ ,~ ' ' · - , ~ ~ ............ ~ . g. o~ , ~ [divisions. Total professional ~e~ne~rs, ~ q ce~fi~d~:. ~ water~ treatment plant ~er~O~, ~'~ ~t~fi.ed'- sys~~ -o~e~aturs ~ and ~1~3 c~tifie~ field maintained under the South central Re~ .~hJn _i pe~ate9 an~ an~ D~sposal Board. .As a means of mAi'nt~ining e~ lo ee - .~ · Y mingling_ T~e ~tlI~ ;.~ also - - ~. , - ongo~ng,.Safety,,traznlng program far. ~s s~affi:~ Peak day demand projections for 1989 had been estimated in th~ City's "Wa~er ~nd.Wast~ter~Master~.,Pl~n (1R~89) : :pr~ared by CH2M HiI1 i~ :~F~ruar~ 1989,~ to reach app~ox~m'at~y. 17.5. mgd. The cur~nt.~ermit~ cap:a~ity :of~, the ~is~in~ water t~reatment [ plant, 17.5 m~,- iS beyond '~he -:capacity,' 'of ~th~:~ existing, water supply s0ur~e. However, , ~aue:_ %~. 'drought conaitions' and ~water ~se restrictions . imposed., ~by / the So. uth Florida, Water 'Management District, maximum day demand in 1989 only reached 14.5 mgd. I't is anticipated that with the lifting of drought imposed restrictions the recent downturn in demand patterns will reverse .an~- mere closely approximate the projected levels of the master plan. Recently, ~ the City has '~:adopted-,~ an.:~'in~reasin~ ~ inverted rate structure as .-part of ' , . - planned ~rate lncr. eases~: , This ty~e of rate structure. . . can ~ffect ~demand;. ~istoriea~. a~d p~oj'ected demands-for they':City's Water servzce:,ar~a exclusive of: drough% or rate i a~e-~set' fort ' ~ ~ . _ - , mpacts h in ~e. Consul~in ~ En i ' , g, nee~.s re o A ~' · g P ppendlx D here~- and, shows, th . , , . ,. . . ~ pro~ec~d,~eak d~, demands for the year 1995 an~ Dull~0ut ,a~e:24 ':and.'3:6 mqd, "~espectiVely-. ~aw-wa=er. supply for~ t-he City's~ potabl~e 'water sy~em is groundwater drawn from the surf, i~ ~-,?~==J ..... J 3 · which co,prises 20 active, well~qf~r~-~e~re~has= ~llk~l~d, supplies .ra~ water to' th~ Cl~ty's E:~st ~TP. Recent data from the City indicate a production loss in~:~el'$ field, 5.~ The City ~s in the process 0f rehabilitating these well~ to recover capacity under 23 In ~1989,_ the-?cit~ compl,eted-~c°~struc~l°n ~o~ p Well Fie~d· capa,city;~ ,'.iinTulUdE4~g ~ reptacement~. 6f ,t~J~ ~ells' wi~h hi~her ~i~lding wetls~ ~ 3 The- max~um ~pumpimq ~apa~i~y bf~,~the ? -. ~ ~ ~ ~ =~ ~=~ es~mated bv ~the~ Ci%y ~p~xi~s~eLy~ '~ · ~ ~ho %ost floq'in well field 5 mus~ De mga. 1p ~7~, '~+'i -' ' ~0 a 'oid a S~pp~y shortfall. addlt~o~nal supply must be obtained v The aRd f~ni~ mgd. PmmP are servi¢~ requiu. FDER; ~1 the f phase of the West ..... tank ,~.n b9~9~ usefu ~ · ~, of t~e~3 m~ s~o~age ~h~ ~,~ ~d~t.~n . or g ~ = .... t~ccomm~at~ the ~proD ect d .... ~n~. ~ ~ , '~ ~ ~ ~ec ~' above ~ - ~ '~ ~on ' Other ~p~tal.~-gr~ ~e.-~ -~ho~we~er% ~ th~ c~pt ~ . C ~ ent and p~ojected wastewat~r wast~at~ ,~ys~m are se~:-forth in the ~0nsultzng:~ngln~e~7: s;~e~. ~ contal~n~' d ~m ~app' ~ '~ ~ ~ndix Da rh~retO~e da' basis: Currenta~d 8..mgf~°ws:d on;amea~ - maximum montaPp~°xlmaEelY' ~ h ~ ~Bv the 'Near 2000~ these fTO_Hs a~e expecLeu ~ ,~+~.]~,. Bubldout flows are pro]e appr~xi~ate~,35 ,per=ent over year.~200~0 conditions. ~ T~ ~exist~ing wastewater coll~c~ticn and ~ansm~sio~ consist~ ok ?~p~ximately 175 mil~S~% o~,: gr~vity?.sewer~' 4~miles of for~e, m~ih~,' ~d~ ~2,38 9~p st~tions.~ '~9Lter ~drauli~- ~mgdeling of the for~e ~a~i~ s~:ste~ conducted in ~98 ~ ind'ic'ated~ tha~ ~f6~e- mains are ad~atety Sized for future ~fLo~s. 24 Wastewate~t~eatme~t and disposal'for the City's service area is administered by the Regiona~ Board (as pre~iously defined herein), whichwas created in 1974 to provide wastewa~er treatment, sludge disposal and, effluent disposal services Jointl cities of B~i:n. ~!'~ ,, · . 3 y to the =~ ~ t0~j~a~h and Delray~each. Thewast plant h~o a curren~'~'~- ...... ewater treatment basms exc gd (annual. average da ), ept ~or~t~e effiuent ........ Y ~ ~ _~ . . ..pump stat~n, which ~as~a rated-ca acl ......... , current · ,i P. ~Y-~f 1;8.1 mg~annual ~uera e da~basis" capacl~ is~ ~ g ~ )., The pla~t~-s Y . a~iocated, e ua ~- ,. q ily bet~eenllthe two~c~t~r uses the convent~ ......... ~ es.~ The plant ~l ~CUlvaEe~ sludge process, and discharge, s treated effluent to the Atlantic Ocean Via a 36' diameter effluent ~f0rcem~ihihat~ermin~tes.in,a 3-0.,~ .. .~ ~ ...... ~=~.,,s~a~AlZe~h~t spread on cl · ' - -lmme,.and land~ 25 WATER AND SEWER .RATES Deso=iption :of "Rate" ~na~lYsis' :wer Th~ methods ~ )licies 1990 has of funds ~o doesuti funding ce. water and wastewater activities, currently commingled The ' . e t~eated as two ~ ~ same fund for budgeting purposes, wet within th ~ . ~ -~-=4-= Tn so doing; a proper distinct and separate ~un~s for anu%~ ...... matching of revenues and expenditures~was developed for both ~ater and wastewater activities. Rate equity was achieved by developing elements of the rate the basis of cost allocation results. This is structure on important in achieving equity within customer classes particularly ' 't for the water utlll y, where fixed charges were analyzed and based on alloca%ion of costs to customer classes and meter sizes. For the wastewater utility, the provision of transmission and treatment by the Regional Board, simplifies the cost of service analysis, with cost allocated on a customer or volume basis. Moreover, rate structure alternatives are somewhat limited, due to wastewater rate calculations being based on water consumption. A separat~ rate structure was not considered based on increased administrative and customer billing costS associated with developing separate rate structures for water and wastewater utility activities. Revenue requirements for the entire System for the year 1990 .270 increase over pre~ious rates. were calculated to result in a 17 ~ Additional increases for subsequent years will result in cumulative increases totalling 86.34% by the year 1995. The cost of service analysis indicated that a greater portion of this increase should be shifted to the commercial customers. Potential and anticipated growth in the customers base in excess of growth assumptions could reduce the need for future increases. 2¸6 The rates i~cated be~ow~were~ado~ted~by City~o~dinance 90-35 on Septemb~r %8, 1990 and will become effe ' No. 1990. ~B~ design this water ~ ...... ctlve October 1, is lacking in cost allocation consideration. However, in the State ~ -- ~rva~lo~ inverted rate structure of Florida many~ municipal Utilities are required by permit condition of the water management districts to ad~p~ such ra~e structures. The. adopte~ rate mee%~s the equity criteria and requirements.revenues ~will be suffi¢ient~o supp~rt~ the increased revenue Water Rates POTABLE WATER, RATE SCHEDULE (1) IN CITY/RESIDENTiAL FOR FISCAL YEAR ENDED SEPTEMBER 1__9.91 Base Charge $5~00 3001-6~09 gal. ~.1.38 6001-9;000 gal. 1.46 9,001-12,000 gal. 1.56 12~0°1~15,000 gal. -.1~65 15,001~25~000 gal. 1~75 25,001-50,000 gal. 1~80 50,001~75,000 gal. 2~01 over 75;000 gal. ~2~5 30, ~99~ 1~993 1994 1995 $5.55 $6.10 $6.65 $7.20 1~45 1.5~ 1~58 1.65 1.53 1.60 1.66 1.73 1.62 1.68 1.75 1.82 ~-72 ]1178 1.85 1.92 ~.83 1~90 1.95 2..03 1.95 2,01 2.08 2.15 ~.08 2,14 2i21 2.28 2.22 2~29 2.35 2.42 OUTSIDE CITY/RESIDENTiAL FOR FISCAL YEAR ENDED SEPTEMBER 30, 1_99! Base Charge' $6.25 3001-6000~gal. 1.73' 6001-9~00Ogal. 1.83 9~001~12,000 gal. 1.94 12,001-15,000 gal. 2.06 15,001-25,000 gal. 2.20 25,001-50]000 gal. 2.35 50,001-75,000 gal. 2.51 over 75,000_. g~l. 2.69 -1--992 1~993 1994 1995 $6.94 $7.63 $8.31 $9.00 1.81 1.90 "1.98 2~36 1.91 1.99 2.08 2.18 2.02 2.11 ~ 2.I9 2.27 2.15 2.23 2.32 2.~40 2.28 2.37 2.45 2.54 2.43 2.52 2.S0 2.68 2.60 2.68 2.77 2.85 2.77 2.82 2.94 3.03 (i) In-dollars per '100-0 gallons 27 .I~ .~TTy/CoMMERC~ EOR> ~-'i = ~ ~-, 1~95 1991 '~ .% ~ ' '.'- -. ..... e9~.~6~10v6~4~ $11.52~ Base-Charge ~'1.38 1.45 {;5t ] ,l~D'~ 1_z65 1~i001_15,000 gal. 1.65 1.72 1.78 15,001-25,000 gal. 1.76 1.83 1.90 25,001-50,000 gal. 1.90 1.95 2.01 50,001-75,000 gal. 2.01 2.06 2.14 1.85 1.96 2. 2.06 :2;~1~ 2.21 2.28 - Base charge 3001-6000 gal.f 6001-9~00Q galk 9,001-12,000 gal. 12,001r15~000 gal. 15,001-257000 gal. 25,001~50,000 gal. 50,001-75~000 gal. over 75,000 gal. over 75,000 gal 2;'.]~5 :~.22~ '2.28<i; .:2.35 2.42 ouTSIDE ~iTY/COMI~ERCIAL FOR FISCA 1991 1992 -1993 1994 1995 $!0,00 $11.10 ~12:20 ~13,30 1,73 ~ . 1.81 ~A1;89 1.98'" ? 9.05- 1.83 <.~ !.91 ~<1;99 2.08~ 2.16 1~94 2.02 = :2~11 2..t,~ - 2.~7 2.06 2.15 :2,23 2.~3~ 2~40 2.20 2.28 ~2;37 2145 < ' 2..'54 2%'35 2.43 {'2~ 52 2~60 '2 ~8.0 2.51 2.60 ' "2;68 2.77 2~85 2.68 2.77 2.86 2.94 3.03 Wastewater,~Ra~es WASTEWAT~R/RATE sCHEDULE IN CITY ~E~IDENTIAL & COMI~ERCIAL (2)MONT~LY cHARGE FISCAL ~EAR BASE CHARG~ COM~ODITY.RAT~ (1) IFNO M~TE~ 1990-199~. ' - $ 7.97 '"-- $1.27 -' $1~6~4517.48 1991-1992 8.69 1.36 1992-1993 9.41 1.45 19.58 1993-1994 10.13, 1.54 19.74 1994-1995 10'85~ 1.65 20,98 OUTSIDE CITY RESIDENTIAL & COMMERCIAL (2) MONTHLY CHARGE FISCAL YEAR BASE CHARGE.. --COMMODIT~ RAT~ (1) IF NO$20.55METE~ 1990-1991 $ 9.96 $1.59 1991-1992 10.86 1.70 .t : ...... 21:84 1992-1993 11.76 1.81 23.21 1993-1994 12.66 1.93 24.67 1994-1995 13.56 2.06 26.20 (1) Dollars per 1,000 gallons (2) Sewer commodity charge for residential customers (in-city or outside city) will be based upon a maximum sewer usage of 7,000 gallons per month. Commercial accounts will be billed sewer charges based upon total wa~er usage. sOURCE: city Finance Department 28 Water Me~er Ins.~llation Fees ~W~ter meter connection an~deposit us'fDllows' charges for. the City, are Meter Size 3/4" Inside City $215.00 2~ 0.~00 . ~£ 6~0:0. O0 ~ 6~5.00: Outside City Deposit $230.00 $ 100.00 ~8~0~00- - 125.00 665%00~' - ~ 250,0,0 ~0~;00~ · 400..00 To~a~:~cost plu~-~abo~'.and~m~terial "::- T-Dta~o!st:.p~us laber~-an~ma~e.rial ~o-ta~ costsplus~-tabor~.and ma,terla~ r~'"- ~ONSTRUCTION~E~S'.~ 7'50.. O0 i~5 0~. 9D . . 2:500.. O0 -Penalty for NoD-Read~Month Deposit 3/4" $ 25.00 $100.00 1" 25.00 100.00 1 1/2" 25.00 200.00 2" 25.00 250.00 Hydrant Meter 150.00 600.00 If the customer requests to increase the size of his water meter to a size greater than origianlly installed the customer shall pay only the differential cost between the original meter and the cost of the new meter for both the connection and deposit charges. Water and Sewer Impact Fees Water Sewe~ Inside Outside Inside Outside Use Cateqory(1) City City (2) City City I2) Single Family One Bedroom $ 833 $1,041 $266 $332 Two Bedroom 1,166 1,457 372 466 Three Bedroom 1,499 1,874 479 599 Four Bedroom 1,666 2,082 532 665 (1) Equivalent dwelling units, (2) 25% over In-City rates which is based on 312 gallons per day 29 REVENUES Water.Sales:~ Sewer Sales: Other Revenue Projected Re~ennes., Expenses ~ and~ .CQ~verage, (1) (in-:Thousands of Dollars)~ For the Fiscal Years_ Ended~ Septemb.er 50, ~ · ~-'t991 1992 . ~ 199~3r 1994 1995 7~,~748 9,097 10,~45~ ~t;~I~ 13,770 ~ 6,~532 ~,08~7 ~-2~?~~.~ 8~~'~ 9,052 T~a~! Reyenues~ ~ 1 Other Expenses 56~ Renewal & Replacement - 240 Total Operating Expenses ~0,908 EXCESS OF REVENUES OVER~. OPERATI~G~EXPENSES Interes~ Income~ TOTAL NET:~REVENUE DEBT SERVICE REQUIREMENTS(3) 3,376 COVERAGE FROM NET REVENUES 1.17 COVERAGE FROM NET OPERATING REVENUES AND INVESTMENT INCOME- i.85 , ~8~98 ~23,622 5,?652 520 ~6~2 ~956 11, 3 , 949: 5,200 !6 }~a~ :C '~S, 3~1 9,261 2,299 2,456 2 ,~4~3 ~ ~.;~ 5 2,999 6,248 7,656 9 ,.~6 ~ ~0J; ~56 12,260 4,293--~ <4,~95 ?~,2~95 4,291 1.21 1.49 ' :~t..~1 2.16 1.78 ~2:..1~ 2.36 2.86 14,362 Footnotes: (1) (2) (3) Derived from the Rate Consultant's statement contained in Appendix F hereto. ~ Based on estimates of City's Utilities and Finance Departments. Estimated Principal and Interest Requirements for 1985 Bonds and 1990 Bonds. 32 fo~ ~ · Moo~y.%s ~n~.estcrs S-ervice~and. Standard '~ poQr.'s Corporation: have given tke 1990 Bonds ratings of" "and , :~", relspecti~ely, with. th9 understanding that upon delivery of the 1990 Bonds a policy insuring :.the ~99Q B~nds will ~_ Su~h.~rat~ng~ ~ef~ect the ~iews~ o~ly of explanation_ of.the '--from .such ~ating :i th~t~s~cti ~ra~tings ~ wil~ ~ co~nt~nue that 's,~c~.~a~i~gs ma~.not . :respqc~e cha~ge:..or ~qual~-app~!nqADpin~o~,-~ a~ai!abte ~tj the time~of, de:livery ~f~eJ.~JBonds~] ~.~h~PmopSos.~' ~b~l~.:~:~uch 'opinion~ of Bond -Counsel is~att~che~::~e~,a~'App~d~h.:. ~.er~.~in{t~a!. ~a-t~e~s :will. be passed ~on :~=':~:the ':'Si~Y,-:~b~'::Jo'Si~S~' f& :~o~e~;,. :~Ci:ty~.:A~torneys :.and for :the U~e~r~> b~- ~a~gr~,a,Woil:e%t, &: ~Ossow, :]Palm Beach ,~ard~ms:, Ptorida. ~'~ · ~,'~7 ~ _ T~X EX~'EMPTION .... .~ :~ The Internal ~ Rev!enue Code :of. ?1986, as -amende~d (the '-Code' :p'~ovides~"that. %he.:-,~nterest:~.cn.sta%e_:a~nd t_ocal:'iq~o~ernmental bo/%ds wlll no~ be included -.i~. the gr~oss incom~-.-~r ~f~d~ral ~nQome tax ~urposes -of t~e owner~:there.o~, only~if ce.rtai~ .requi~n~ are met, some of which mu~ ,'b~e?~%: ~on% ~a -~conti'nuing b~sis, ;subsequent~ to:::.the issuance and ~li~er,~T ~=he ~.~o~ds .. A~lt.~ugh ~e.:City ~has :.covenanted to, .~omply with ~s~ch requirements.;. ~non~ompl~ance~ with suc~eqmi~eme~-ts~cou~d cause ~e inter~st::on ~the 1990 Bonds ~9 .be ~nct~ed in g~s~ income ~for federsl i~come. ~a~ 3purpms:e~: retto~:c~e:, ~t.o ~the~ ~da~e Of :~ssue of, the ~1990 Bonds regardless of the date on which ~s~ch-~ no~omp!iance occurs or is ascertained. Those requirements include, but are not limited to, p~uis:i0Ds~: .which .~e~q~e ~el~i~ ~o~_~.~ ~.im~t.s. within: which the ~p~oce~9:~f , thel;~.~90~:~on~s a.~d-~ ~t~r. am~untS~,. .~e .'~o be ~ested and Which ~r~q~ir~¥ :~ -~ oerta~in~..:inves~m~ .~a~i~ngaT~on~: the ~: foregoing De ~9:t:ed: .~;:a. pe~dica~:~basis ..to .%heuTrea~ury: D~Par~sh% o~ the United .~: I~ ~.: opiniona~Df Moyl~% FlaniganL>.Kat~:. Fit.zG~rald~& Sheehan, P A., West Palm Beach, Flori~, Bo~d ~ounsDl~_,uhd~ existing law, and assuming continuing compliance with t~e aforementioned covenants, 33 interest on the 1990 Bonds is ex~lu~e~ from gross income of the Owners thereof for federal income es is not an item of tax ~x~s-/~posed ohih~?lviduats~d corpor~tions~ ~'~.~'~ ~ ~ . ~ 1990 an ~inion that interest on the for federal income income~ f6reign'branch ~iMidend 34 Alternative .Minimum Tax. FOr, taxable~years ~beginning in _1989,~ certain ,~corpo.~at, ions~..~re required ~to include in the qalculaticn e f a'lter,~native~ minimum taxable in~om~ 50% of the ex~ess mf ~ach such corporat~on,s._~ ~'adj~sted net~- b~ok ~ncome" (or 75% of the exces %~adjusted current earnings,,~ for taxa~le~ars ~ ~erna~.l~e ~m~n~lm~m ~ ta~a~ble~ ~n.~ome (~ete~ine~ without ~g~d ~to ~is adjUstment,andYne alt~rn~ti~ax ~et The phrases "ad3usted net book income" and "adjusted current ear~in~" for purposes of the foregoing ma~e*~equired to include certain income, incl~dlng interest on ~he ~990 Bo~s, without regard to whether such in~o~ufs ~..t. aken,~ .~ i~t~-acc~unt;~for ~t~er ~federal i~o~e~aX Ru~oses. imposed ~on the '"ekcess 'net ~assi~a.~inC~.,, ~[.~ ~k2~' ~2~ .... ,' - · s~cha~ter C~ earnings a~d. ~ofits. '-and passive ~nvestmen~ income in gations / suc~: ; .om zs wholly exempt from mncome 5axation. (b) In c~tain Qn )rods ~uwi~l..GQ~stitute?~tax_ Section 265(b) of the Code. Insurance Companies. Pursuant to Sect io . n 832 b ~5 - the* a ~ .... ( ) ( ) (b) of the Coae ~ ~ ~ Qf ~he ~o~he~xg~· ;~e~u¢t~ble ~[osses in u , co~es{ pth~ than l~tfe 1 " - e~a~'~t~ .¢fmft~:~w---~--=~ - ..... .< ' .... ~n~¢d.~y an amount ~.~, ~ ; ); .......... of~e tax-exem t mntere rac~ or accrue~ on obliga-~tons~ac~i~ed after ~A[,~"~ Ph~-~ ' %st pu~g~s 9f Section 832 fb% ,,ta '2pwL~L~ fL+~Jx~2,7 on ~'~i~990 Bonds . . ~ x i.._[.~ ....... p~u wlmm Include ~nterest ~ .So~al *Security and Railro d. ' · , · a ~Retiremen~ Benefi Se~tmWD 86- f'~e ~n~, %~+ ~, ~ t ,. ~ur$gant to ....... ~. mpt from tax ~e s~ on th ~ 1990 Bo ...... g , ~ nd~ , is ~nc ,~ . tuded mn the c leu : .... , ~ . latlo~ of ross lnegme, o~. certain, reel le~ts f e ~ ^~ ~ _ . ~ ~, ._ P .,~ ~her monthly beneftts,unde Tdt]~ ~ ~¢~= ~oclal oecurl=y Act or tier-1 railroad r~L~e~ ~ ~ond Counsel is also of the opinion that the~1990 B~nds are. exempt from a~ re ~ ~ .~?~.~p. sen~ ~ntangib~e>personalurop~~ tax~s imposed.by the State ' UNDERWRITING - · The Underwriters, as shown on the cover page hereof, have jointly and severally agreed to purchase the 1990 Bonds from the City at an aggregate purchase price of $ plus accrued interest on 35 the 5990 BondS~, The Underw~riters wil~I~ b.e obtigatedL~0 ~urchase all the 199g Bonds if any rare purChaSed. Following ~th~n~i~i~ ~i~~ ~ff~ring, the public ~ffe~ing p~i~es' may be chan~ed ~ f~m~ time~ to time~by~~ the 0~derwr~t~rs..~: Th~ ?990 B~nds m&Y;be of~:~red a~d Sf~d~to~ertain in~lUdin~ Underwriters ~nd oth~ qd~a~ers' dep~i~ing ?~s~ch~ B~nds~.~ into ( pending or CONSULTING ENGINEERS ~ ........... wa~eE- and was~e~e~ regarding taln ca i{~t ~i~prbvementsq~O Reg~_.a~ ~er' ' , P .... = ~ %~ ,~n Bonds. T~is sta~ment'~has Treatment Plant to De iunGeG irom been included herein as Appendix E t~ ~e~i~nce upon said te~ as experts ~' ~%itlties. in the field of water and was~ew~er 36 RATE CONSULTANT The Rate Consultant.s statement included herein as Appendix F has been prepared by David M. Griffith and ~ssociates, Ltd., Tallahassee, Florida. It has been included herein in reliance upon experts in the field of water and wastewater utilities, said firm as MISCELLANEOUS The information in the foregoing pages is presented for the guidance of prospective purchasers of the 1990 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 a~tached hereto involve matters of opinion or of estimates, whether or no= eXpressly stated, they are set forth as such and not as estimatesrepresentations will be of realized, fact, and no representation is made that any of the AUTHORIZATION OF OFFICIAL STATEMENT This Official Statement has been authorize City of Boynton Beach. F r~ ~ .. d and prepared by the B ,. lo ..... ~oncurren~± wi . 1990 onds, the Undersigned T.,~ ........ Y th the dellverv of the = --~ ~urnisn their certificate to t~e effect that~ to the best of their knowledge, this Official Statement (except for the information in the sections entitled "Book-En=ry-Only System',, "Municipal Bond Insurance,, and "Tax Exemption,, herein, as =o which no certification will be made by the City) did not as of its date, and does not as of the date of delivery of the 1990 Bonds, contain any untrue statement of a m~terial fact or omit to state a material fact which should be included therein for the purpose for which this Official Statement is to be used, or which is necessary in order to make the they wereStatementSmadie,C°ntaihedn~t misleading.therein'in the light of the circumstances in which CITY OF BOYNTON BEACH Mayor City Manager 37 ENGINEER'S STATEMENT ON CAPITAL IMPROVEMENTS AND ADDITIONAL BONDS TEST 1990 SERIES BONDS Prepared for CITY OF BOYNTON BEACH, FLORIDA Prepared by CH2M HILL, Inc. October 2. 1990 INTRODUCTION The purpose of this Engineer's Statement is io ~provide B ' oynton Beach s water and wasmwater systems, their operauon, and.proposed% improvements to the systems in support of the City's Vv:ater and Sewer l~tility Rever~ue. ,., ·Bo~nds,~Series~l~990(l~990~ ~ Series· Bonds}. Proceeds of. the 1990 Series Bonds wj!!~ be~ ~se¢:!c~ fir/~nCe~ew f~ciliti~eS ,and 'imp~6v~m~niS ta existing''~fgcij~tieg ' Sp~ifidali~/thg~e b6nd~ will bemused th' f i '~ ~,'~' · ,:l~p¢¢~m~Cn~t o~ s~ftcn~g:.basln(iF}~rfia~mact~ai~Jsmg:;ffnd installation of .,~,~m' acrlu~siti0n:aBd .~cisn~ ~rol ;,~t~ml ~f~he ~xls0ii~ treatment Plant (~P)~;. ......... eXPafldabie to 18 '~ga~ hi0ng wi~h~ ~¢h~on}~ta ;cqui~ition and contrdl system in the ,h/e~tern p~Srilbfi ~Sf~l/~ 'City's W~ter ~ervi& aiea, · Installation of pumps, connective piping, and, controls for fqur. new wells to supply raw water for the new West WTP.~ * Con~trudtion~ of fin~ish~d Water mains f0r C0nnectin :ti~e new we to ~th.e ~a~e,r distrib~u~ non ~jystem anal ~for ~ficreas~ng anti ~mproving l~ydfduli~chpacity 6Fee~t~ifi segments iSt~/b Wa~er d]siribution s3stem. · Installation of repla~e~enr pumps -a~ fotir existing wastewater pumping · Rehab]litation of master, wastewater pumplng stations to repair the ~ffe~t~' of c0ri'osion, 7 ~ ' · Ex ' · , - - · ~ ~ pans~on of t, he City $ emstmg radio telemet~ system ,for monitoring and:cbntrolling all W~stev~ater pumping statiot~s. These capital improv,&ments, refer~ed to collectively as "the, Project," make up a portion of the utility s proposed Capital Improvements Program (CIP) it/at is pre- sented in the "Capital Improvements" section below. Other capital improvements not included in the Project will be made. but will be financed from net revenues and ~mpact fees rather than from proceeds of the 1990 Series Bonds. dbp019\049.51 This Engineer's Statement describes the general nature and purpose of the Project and related capital improvements that will be funded from sources other than proceeds of th~ 1990 Series Bonds. ~hk nedd for ~a~ital funds, and the uses of those funds. This statement also includes a financial analysis to determine satisfaction of · ' al Bonds Tests re uired under conditions of the Series fl98,5~ Bo,n~ two Addition q . . Resolution :for the issuance of parity bonds. Conclusions are pr~esented ,~t~ the end of the statement. and COSTS real Recovery--A 4 HILL in gM HILL' is a consultin firm of engineers, _planners, economists, and. scientists nrh{7.dln~ ~ nmne ena~neermg des~ n, constru , .... , ...... r est consultants mthe. a e s~n 946, The firm is one of the nauo~ s la g · ~9e J,: .~, ~ , ,, , ~: , ~ ... ..... : , afia'~a~f~f ~giheering: On June T f.198& the C~ty of Boynton Dea~n sm~ctea fiomra~t~a. -~ ~ith ~H2M HILL to provide general consulting an¢ :englneer~ng and '?'lad In Ska'::' '&t CitY's Utilih42bepaftmeht-' sbme df'ih : kes provided to the Utihties Department to date have included preparation offi~ &~t~ and waslewate~ master plan and utilities element of the comprehensi~ p~an, design of ' ~; ::{~ ~o'th~'E~t Wall'Field¢ gi~bt' ~E~tiag 0f:'d/glnfecifi~t} ~e~gtives at the existing East ~P, design of improvements to fuel and cnem}cai ' x~ tin East WTP assislance ~th obtaining a zoning v~nce ties at the~e ~ g , -.. ' ' ' r'[ '[ .... ; '' . - - : . ' of lm rovements Wesr~P d0mblem' design semces for;$he new West ~?,ds~}~, , ' · ' .'.. : ~ . the 'feasi~lltg'BI aqmter to and e~ans~on of the emstmg East;WTP, evaluaUon of . iecove desian of four wasie~ater pumping stanons, ann m~scenaneuu, related s6~i~ . "' dbpO 19\049.51 2 THE WATER AND WASTEWATER UTILITY The City of Boynton Beach, Florida. provides water and wastewater services to a geographic area within Palm Beach County about iwice the size of;the City itself. The water system includes facili~ties for raw watei supply, water treatment,, and dis- tribution and serves the City of Boynton Beach, ire Town of Oceav/.Ridge, the Town 6f Briny Breezes, part of the City of Hypol~o, and several unincorporated areas. Wastewater services include collection ahd i/'~ansmission and are t3~ided to the City of Boynton Beach, City (~f HyPoNxo,. the Village of Golf, a portion of the · ~ County. Through an provided for the Facility located SERV[~CE In ' the tO 000 popuIation the WATER The ~ includes the ( Breezes. County. quality remain WASTEWATER S~STEM of Golf. a Beach County. The service area, small neighborhood tO the Village the City's dbp019\049.51 wh~tewater treatment for the sermce area is provided at the South Central Regional W~i~tewater Treatment Facility through an interlocal agreement between the Cities of ~.,ekay Beach and Boynton Beach. SERVICE AREA EXTENSION ~he City of Boynton Beach ma) extend its b~d~ri~s i'n the futur~i!~rou,gh '~ - · m B'~Ct~ Count , which p~arily ~e to rne a~nexauon of umncorporated areas af Pal . Y , is tO limit annexation westward to areas ~st of existing city limits, are already ,, utility' Key The I plant and for dbp019\049.51 6 Total Ce/-tifled : Water Pl~iRt Division Staff Teehniciansa O~erators Ol~erator ~, Plant Operatbr Administration ,~i5 '~' "~ ii .~, ,: ' Constmcfibfi ' ' ' .... Sewage Collection 13 3 Meter Reading 8 Water Treatment 15 5 2 3 Plant 1 Water Plant Supply 5 1 1 & Mechanics Utility Mechanics 8 4 Utility Pumping 11 Stations & 1 5 1 Mechanics Total 96 13 6 2 4 I 5 3 aCertified field and FCC techmcaans and welders, and licensed elect~ rJelan,~ dbpO19/055.51 safely training program' foi"~itS-'Staffl The e~isting Utilities l)epartment'ffi~tflagement within and maintain pace with enforced S~er ~ dbp019\049.51 8 POTABLE WATER SUPPLY SYSTEM Potable ma;er su~pply for th~ ~City of-Boy:n~qn~e~ach includes ~faciiities fOr ra~ ground~at~i'Witficir;~J~i;-{rg~t~-~nt; i/afi'smi s ¢r i S/dr ge, ~d dis~ibution; ad~nistrafion; and 6pefafion-s; In'tbs~ se~i~n and the "Wastewa{er System"section, referen~ is made t9 ~apital ~provements t~t are included withifi the Projdct. as well as those that will~ be carried out with fuh& other thah the pr6deeds of the 1990 Series Bonds Tables 4 and 5 ' ':'" · - · ~ . , presented m the Capital Improvements section, illuitratg me complete Capital' Improvemen~ Plan (~IP) for the ~ify and dis~n~sh those facilities~ to b~' ~unded~ by ~h~ i990 Se~JBonds. ' WATER ~DEMAND ?. In the City's Water and Wastewater Master Plan (1989), peak day Oemand projections fpr 1989 were estimafed to reach at, proximatelY 17 5 million c~allnff¢ T~ ~cur[~[.p~t~q qapac~ oLthe emstmg:~P, 17.5~mgd, is ffe~nd the capacity ox me emsung water supply s'ohic~: H.6W~V~; because df dmugh¢~hditlonsand Water ~e restriction5 imposed by the South ~i6rida w~}e~ Management Dis~ict m~mum day demand in 1989 tea~dhed Only .14 5 m~d it is anticfhfi~ed thnt with th~ lifting of drou~t ~mposed restnc~ons, the ~e~t re~rse and more closely appro~mate the prgj~cted levels of the Master Plan. Recently, the Cia.has adopted an~verted ~i~}str~a~ ~as p~t,6f p~lanned rate increases.' 5~i~ :t~'0f ~at~"st;~Ct~'~fin ~f~[demah~ ';Tfie~de~[~ 0f demand reduction is difficulf to accurately predict; therefore, demand Ohtt~ s~Utd rehewed semi-annually to deter~ihe if there')is any measurable impact from the rates. Table 2 contains ~storical water production and projected water flemand~-foFthe ~['s rater semite area exclusive of ~ossible drou t o ' _~:~_. :~ ..... : .... :, .... : ~ ~ ~ ~ - ~ gh r rate ~mpocts and shows that p~ujce[ea pea~may ae'mand~' for th~ lear t9~Y~d bufidom ~hve dbp019\049.5I 9 HISTORICAL AND PROJECTED WATER DEMANDS · Year- - , . _ ' . . . .71 1988 .... 6:7 ' ' i989 11.4 ~ 0a 12.8b t99 10.2 'Peri68~[bm Jan~a~ 1990 t~ lu!~ 19~0 . . b~p ~a'i~ehar~e ore,sure ~a~ temporarily lowered d~r,~g demand period for.water cq.nse~atmn- .... .. med ~ ~,llion ga~bns per day . ' . East W~li Field. -, Raw w~er suPplgi{or the City's potable water~sysrem is groundwEter drawn from The surficia~aquif~r~ ~Ti~e E~st V~ell Field. which C{J~nprise; 26' active Welis in four separate well fields, supplies raw water to the City's East WTP. Recent data from the City indicated~a production loss in Well Field 5. The City is rehabilitating these wells to recover capacity under the direction of Geraghty and Miller, Inc., consulting engineers. In 1989, the City completed construction to provide additional East Well Field ca. pacity, including replacement of five wells with higher-yielding wells. The maximum pumping capacity of the existing wells has been estimated by the City at approximately 18 mgd. However. because the peak day water demand lS projected to be 20.5. mgd in 1991, the lost flow in Well Field 5 must be recovered and additional supply must be obtained tc avoid a supply shortfall. Two new wells, originally planned for 1990-1991, were estimated to sufficiently raise the well field production capacity to meet demands until the new West Well Field dbp019\049.51 10 and West .WTP are in producgiom However, s_iting of these -well:s may be difficult in the developed east side of Boynton Beach..For this reason, and because of other benefits: aquifer storage and recovery (ASR) of treated water is planned by the City, as a potent/al alternative :to,~rillir!g~ addifioaakshal],o~ aquifer-,wells: Consultant selection beg ~a~n ir~.ugust 199ff~f0r drili~g 'an~de~,el~pi~nt of, ,~SR~ wells an~t~[njec- tioh/rec0ver~ ~cycle_ ~es~ing. ~e A~R~ vtel~'~, are pia, n~i '~'?e;lo~ated :0fi_ the ~a~ WTP,site-ar~d ~re.:estima}ed:~o provide, ar~-ad~t}~ional ,2, t~-3 m d, 0f: eaiC g p. ,. y_. p y. The ~,A~, R .tec, h~o!pgy~ca~m~r~izemse of. tk~im?al, e:x~sti,n,g pla~l! capaCity,oma year, rouna .asls, enrt_ailee watersua}ity' and aumem available ,shatlow a~f~r ~elil under-~0'ugh't~ ¢;n~litions~ '(~)m~pi;ti0~,¢f~,'s~ '~nd~'shallow g~ifer, ir[~harge;fa~ilities is p .Lanned'~tp be~e. dcby,;0dr~es:;of ;;ven-~¢ otl~e~ il~a~"~th~-~0C~efi~fro~e~'i'99 merited as necessary With a Floridan aquife~fbtet~di~ ~e!j~ ~-~id}t~nal wells, or with recharge wells for retardihg SaiMter i~ru~ibn i~ exiSt/n~'~r~)~thctibn - ~ .... -; "~ . :2. : : ..... '3~ $ .'.TM ." Westl3/.elt:Field.. ,; : :L : ~ "-,:' ._~_- ~ .-. .. TheCi ,~s~e de ; ' ... . ........ .~ _ ,:~ proau~n,~etla~Stk,~n~s ff~*S~m~s 'othe~ ~ ~' mceeds ~f~th - ~,,~-: <~e ~mrtg)r.,&~r ~;i~e~ter souree~or t~e~e"we~; ~hieh,~supPl~. raw wa~r,t:0the:~o~Ose0 ~,t: 'i ': ' - -rov'~ ' ' :~: ~:~'" ~v~ :~' q0~ memram :~ofte, mg:p!~t~hm ~ scheduled, to p me.an !n!~g~t~m~n~ cg~¢ty,~f:i4,-mgd ~y, June¢t~2. ~. ~' ~ ' F~r~, the:~fi~s{0nlle~;:,~ t~,: ~ Well :F~0~d:~are: e~¢~ed ~o have ~'-rated ~rn ma rea~aant capacl~ f6r downtime and'r~tafion; that ~l-~e s~gicie~t to supply the 4-mgd :first of the West WTP. As pa~t of the e;~j~et7 these four we~s will be wi~ water ~t tO drilled wells in rem~n~r of the newly fully develoPe~ a~d ~t~a~l$, augmented by supply from the Road Well Field. ' East ater ~r~,tment Pla~t , The exist~g East ~P,h~:sxa permitted ,capacit~0f l'7~5~gd and'uses li~e soften~g filtration,--~nd~ ~hlori~at~;o ~r~* a, finishe~~,~ater' ~; complies' with ali Current · . . , .:, :. , ~ [ - ~ . ~ . ICl a~ea re tlons that will ~:e promffi~&d ~mresponse to the t986 S~e Drin~g t~ter Ac}g dbp019\049.51 (SDVCA) ~a2mendmentS'/ire likely to rest-rict the currem ~se:..of: ch, lo.r. iue c~)~m.b,~in..e_dhX~}th amm6il~i'f0r pri. maty disinfection. To prepare for, thg f~e~ regmat~ons, me ~ty n s to investi:gat'~ two (hlterhati~e disifi~e~tan~s: chlorine d~ox~de the 1990 ant side, Bew this The plan of the dbp019\049.51 control facilities. 3 million gallons :~mg) 6~n~shef:l wate~;gmhnd storage, chemical storage and containment, standby emergency power for the plant and the well field, high service pumping, a plant operations and laboratory facility, a deep injection well for membrane reject water disposal, and an emergency reject ~ater:di.'si?p~,Sys~t~m,~ to the sanitary sewer. This initial 4-mgd phase will be funded through proceeds from the~1990 Series ,Bonds._ Ad 5onal ~embrar~e. softening trains d associat d 1 m lx3,3-m~ g~ inCrement~ as needed to meet future demar*o~;;~:d.~t~:dc~t.~si't:~ 'a~3 ~,~,trol~,ste~i'W~i~is;'b~ i~p'lement~d ~s' art te':~n!!-ol§ &~d Operating data bases of the East WTP and West 9?I'P. To help n ee~,cons~2¢tion costs, tb_~. City comrr~i6nea a valti~ engineering study of the V~a ~P. :P,4~uik 6f ~fi~t showed some reduction in capital cost may be achievable~;i~,.,~,~¢?~st?~nc~ior~,.liocume~g¢$y~2~e uad~[~ingfina, b revisions incorporating certain- offin~ savings will be:s~ in ~e~prices. race' ed at ~j~o~¢bid~g A .:, .... , .~ .~z, ~ Z: ~ .--'. '-~- u~u to..~e~a!pa~, tp~ .e~sung~mo~yon system in all ~lor seaio~S of the se~f~ hrea~!~&' the ~ai~'~tea 988 pe ';h ur 'dama d 'of/ approximately 27 mgd. With tM. completion in 1989 of the 3-rog storage tank~ooster pump stafioE near tM ~-29~ ~ exist{~g disrributioa facilities ~e-est~ d to be ~ pn~- pt t~.9(West ~4)~:p!aced:~i~ ~ce. The water distrib ': ~ ~ ~ ;~rip~jo~ gyste will be needed ~ to t~e~sfi i m by private .weJ!sj booster and the and lo With the addition f the 3-MG st6rage tank in 1989. useful water storage capacity is 5.5 mg, which will be sufficient to accommodate the projected buildout storage needs of 5 ,rog. Ho.w,ev. er' ne~ storage facilities will be required for the West WTP to meet regmatory gmdefines or:the FI0rida Department of Environmental Regulation (FDER). A 3.0-mg storage tank iS included in the Project as part of t~e first phase of the West WTP construction, with an additional 1.O mg planned after the year 2000. Additional storage is not planned for the East WTP. which is served by a 1.6-mg clearwell and a 500,000~'gallon:,elevated storage tank. dbp019\049.51 13 Table ' 'WASTEWATER SYS~M~ ' :': ~' , basl~-and~, be Other dbpO19\049.51 14 ~Is~oa~cA~ ~D~*PRoJE~TED WAs~EWATER FLOWS 1989 .("..';6,~0.~? .-, ~ ~,:' ::~. ;8.~.,.~. , 1990 ' 7.40 8.60 1995 10 12 2000 11 13 B~dout 15 17 I WASTEWATER TREATMENT Wastewater treatment and disposal for the service area is administered by the South Central Regional Wastewater Treatment and Disposal Board through an interlocal agreement between the Cities of Delray Beach and Boynton Beach, which are the sole users of the facility. The Board was created in 1974 to provide wastewater treatment, sludge disposal, and effluent disposal services jointly to the two cities. The Board is composed of the five commissioners from each City, who operate the treatment plant through an executive director. The South Central Region Wastewater Treatment Facility has a current rated treatment capacity of 24.0 mgd (annual average day basis). Total plant capacity is limited by effluent pumping capacity which is rated at 18.1 mgd. Plant capacity is allocated equally between thesCities of Boynton Beach and Delray Beach. The plant uses the conventional activated sludge process and discharges treated effluent to the Atlaritic Ocean by means of a 36-inch-diameter force main, terminating in a 30-inch-diameter outfall. Waste sludge is thickened, stabilized with lime, and land-spread on citrus groves by a contract hauler. Major improvements at the treatment facility to be funded in part by the proceeds from the 1990 Series Bonds include a new blower building and diffused aeration sysmm, aeration basra covers, odor treatment facilities, and effluent pump station improvements. The improvements are designed to increase the total plant capacity to 24.0 mgd (annual average day basis), thereby allowing 12.0 mgd of capacity for the City Of Boynton Beach, which is sufficient to satisfy year 2000 wastewater flows as shown in Table 3. Also included as part of the improvements is the demolition of the old Bbynton Beach Wastewater Treatment Plant (WWTP). On the basis of the dbp019\049.51 15 information p~0vid~d by Central Regional South for urther dbp019\049.51 16 estaNish~d';by':ttje: fei:leral:gov¢~rrtm&nL, ur!d~ ~31~ -S~ife~ Drff(k/~ag Wa~tdr Act ~s amended. ~This~A~t,~oget~er:w}tli regulatiom :;~iished?~J tile ~lo~ida D~pa.~ment~ ~ ~ En~r°nment~l Regu~a~on '::{mE~¢ Set' ~h~,r~!ato~.fr~m~w0~ ~thih c~ of Boynton Beach's water supply; treatment~ and ~}ffibuii~n sysmm must ate. The systems are monitored by the Pa~ Beach County Public Health Unit oper-- ating'~under~'~e-F]or[da~:,Departmem ~f H~h,~d,,Re~hitit~i~ Se~ices; Di~si0n of reml~ 21.0 [he The dbpO19\049.51 17 The ects for water and wastewater capital facilities Project will result in enhanced system capability tion of t ne Pr( i~ct dealing With psiable, :apacity at the East WTP an~l?tl~e future ~ ~aPacity within both the system and as dbp019\049.51 18 0 ol I ol Table 6 CoMpONENTS OF THE, PROJECT FISCAL~ YFARS !99!-1993 : · , ESfi .m. atec~:i capiia!il ~ ,Fsxpenditures Re¢~mmenclecl Imorovemems Water System Improvements 'East ~ Im rovements , i , 1,266 ' - . ' "' · New ~.~est WTP and( -APpUrtgnances ~: ,,~ :%049 3~95~d - ',~ vements - 571 402 Wate~'Di~t~bm~on S~]stem Improvements , 394 3 [~ .Subt~ml,Water Sys}e,~m Improvements ;! .:~ 11,28~: 9~,9~ , ~astev/ater ,System tmprov~em~atSI , -~ ;;~ _. ~, ~a er ;Tmns~s~on ~3:~Tdeme~ 56i 61o~ ~ ::~ast~ater Trea~dn~ ,~0~ements 4,000 i;000 (~ ~ Snbt~t,:~astewat~, S~tem-~I~proycments 4,561 1,616 . ~ ~ 1~565 ~otR1 ~¢~rovemenm :~ , 15,841 ~,~i~;~e~ e~ends from O~t0b~r 1 to September 30. :? ~ ~ ~ons ~e,:. o~er-of-m~!tude esumates m June 1~0 ~!lars. [fi~ ~a;~4~ e~&f:nam*nfi~nonehi~ ~e of ca~itat im~rovemems to.pe~ed ~ ~fi~S~ ~nd isspe ~as E~ded by the ~i, and ~S prepare~ FOURTH D~ 9/07/90 dbp019/05L5,./ ~, .... A2DD i~TiO N~.~BOND S TE S.T ..... ~ The.,~di!io~_nsal~ B.on_~?~'S~:.i;S..a.~esr of the abili~ of the utility system tr~':gerlerate net reyenues:adequa~e tO provide r~quired coverage of the existing 'and the.lJr°l°~se4 anni,'a~?d~bt :semce'i/h~-is~a~. Condition of the 4985 Bond ReSbl~fiomfor ~su;nce~'-of p~riiy, bonds sUch,as :Ihe 1990 S~ries Bonds. This test rec}Bires the,iirfi0~iit ~-evefiiie~-for anylf~i} ~nkecutive quarters in the p~ecedi~g k~xT~u~l~t~ pr. liSt to the ilsu~a~e'~o~.the hhw~o~d:is~Ue. ~djSsted by any a~iditional r~kefihes e~q~cted~ito be realized to pro.de coverage that will meet ~o specific requirements ,,~[ar 0i Bayktan ~ach.:mevfo~:_quan~rs Mthin the p~iod,of 3~y~&;~g89/~;ngk ~b,,WgO, wer~ u~e'a:to 'te~t cove~ e. The reSults of the utility may be sup~le~,~Zed with hrst.souree ~s ,addihon, al~ revile-that the se~ices.~fuvnished_~-I~e Oit~'g,~wa~er and : r&ised r tes a~d ~ hal bonds. The additional, n?~}e¢~ that four consecutive qu~rt~S~'i~hd~' ~¢~ '~arges may be treated as additional 5~en~e~ for ~nues cannot be ~ss,:¢9,n~145 :p~t>of the requirements The Ciw is in the process of ad0p~{ng and j~f~e~}nfing .r and Sewer Ut~h~,(to, 3ecome been implemented dutihg:{h~: 2~ly 1. shown as For the to b~ dbp019\049.51 23 Table 7 ADDITIONAL BONDS TEST ~ o,~ ,: ~ $ ~057;501 , Su~t~)}{ ~ R~9~ (~em~) $1,~,~ ;, $~5~: ~hflable for Debt Se~) · ' 1~1~1 Rhte InCre~e-were ~l~Ulat~;~$1~e'~bP~;'1~'~3 er ora unts and mmum ti n mm Impr~ements Pro~d~ by eroleqB, were.~t~9 ~., ~ ,which mclua~ ~n 8.5 p~r~nt ~[gJ~[~ ue~XToml,Revenues minus Total ~pen~) ~ include ~e Add~tmnal Revenue~. ~: FOURTH DRAFT 9/07/90 dbp019\056.51 All improvements included in the Project.fy/fi.be completed and operational by September 30, 1993: the next bond year begins November 1. 1993. and ends October 31. 1994. The second Additional Bonds Test is met when the percentage derived by. dividing the amount of-actual~net rey¢.nues,in t~he appropriate four, · conse~ufiCe q,uhrt~)~s~ ~'di~s~c~ ~W~i~ Ii~ ~¢'addi~i~hai }.e~,enue ~;ur~es disch;sed. -~ above, by the maximum amount of the principal and i~.~e~t~req, uire~enB:£ov any bond year thereafter, including the proposed additional bonds, is equal to or greate~ than i35 percent,, z, As-Tab_Ie: 7 showa,.~the: ~a~er a~d s¢~wel:~re~enues:gdjusted.by the addi.ti0~at..revenues ~g ~less -;~h'~e: ~otal :~ater a~d sewer~ exp~enses.satisfy:(~he~.3,.5, per- cent AddidO~nal B6iids~T~st.:~, ~As.: in. ~he ~_ ~:~: tke ~sCte;~; tt~is~ based on the assumptlon~that demand for u~ity se~ices:Mlknot~.~a~: d~e~ult of implementing the higher rates. On the bas~gfi~ aS~ptions ou[~ined in:;[~s ~atemem~ utility system m~enues would be suffi~eg[:,~ ~g~s¢~he ~ddifi0na! BOnds Test dbp019\049.51 25 - CONCLUSIONS The ~ater supply, treatment, and distribution system and ~the wastewater c611~cfidn and ~r~nsmissi0n system have been 6perated arid m~inlained in acc0~ce with standard' Ufiiity practice, Thes~ systems pr~vi~te reasonable water..and sewer service to,the City's customers and meet curr~bnt permitting requirements. The s~uccessful~ upgrading of wells in the East Well Field, combined with cOnsh'hction of aquifer ~nd storage recovery wells ~nd completion of foux new wells in the West Well Field. are estimated to provide sufficient raw water supply to meet projected demands through Fiscal Year 1994. The proposed water treatment facilities included in the Project are being designed by CH2M HILL to be in compliance with current applicable rules and regulations. Sufficient treatment capacity is estimated to be available upon completion of the West WTP in mid-1992 to meet projected water demands from the service area,through 1994. The City's existing water storage capacity of 5.5 mg is sufficient to accommo- datethe estimated buildout storage volume Of 5.0 mg. Upon completion of the Project's wastewater transmission system improve- ments, including rehabilitation of certain pump stations and completion the telemetry system to each pump station, the system is estimated to adequately provide capacity for pumping and transmission of wastewater to meet pro- jected demands through Fiscal Year 1995 when supplemented by repair and dbp019\049.51 26 10. 11. 12. 13. 14. 15. replacement activities funded from revenue sources other than proceeds of the 1990 Series Bonds. Improvements at the South CentraLRegional Wastewater Treatment Facility hax~e been designed by Camp, DresSer and McKee, Consulting engineers, to increase total plant Capacity to 24.0 mgd ~annual average day basis) Of that capacity, 12 0 mgd is allocated to the City of Boynton Beach. which is sufficient to satisfy projected year 2000 wasxewater flows. The water and wastewater system concepts proposed to be implemented in the Project represent widely practiced technologies in the distributiOn, storage, and treatment of water and colle~ti0n, pumping, and transmission of wastewater. The Project is a feasible, viable, and cost-effective alternative for enhancing wat. er arid wastewater se}vice ~thin the City of B°Ynton Beach based upon rewew of previous studies and reports without independent verification of the informatloh, contained in those r~ports, and based t~pon the information de- veloped by CH2M HILL as engineering professionals usdng established prin- ciples and Practices Of the profession as {hey relate to utility planning. The projected construction schedules and costs estimated in this statement for the Project facilities are reasonable for completion of the Project. Items such as final regulatory agency reviews, which are beyond the control of the City or the design professionals, may cause specific events to not occur as anticipated. In addition, otb. er events may occur affecting the cost and availability of materials, eqmpmem, and iabor, which cannot be predicted. The proceeds from the 1990 Series Bond Issue nlus earnings thereon are sufficient-to fund the cost of the Project. On the basis of the assumptions outlined in this statement, sufficient revenues can be generated by the water and wastewater systems to meet operating expenses, working capital requirements, debt service .payments and coverage, and other financial requirements to satisfy the requirements of the Additional Bonds Tests. The capital improvements included in the 1990 Series Bond Issue related to water and wastewmer treatment and associated distribution piping and water supply facilities are estimated to have useful lives in excess of the term of the 1990 Series Bond Issue. dbpO19\049.51 27 APPENDIX E CONSULTING ENGINEER'S STATEMENT REGARDING CERTAIN IMPROVEMENTS TO REGIONAL WASTEWATERiTREATMENT PLANT CDM October 1, 1990 CAMP DRESSER & McKEE INC. 1500 N.W. 49th Streel, Suite 300 Post Dffice Box 9626 City of Boynton Beach P. O. Box310 Boynton Befi~:h, Florida 33425 RE: South Ceritr;al Regional Wastewater Treatment Ptant OdorXb~ite~entz~,~ration B~sjh~ mid . , Effluent p~p.staiio0 Exl~fifi~io{~} )~r ' -- ' cDM l~r~]~C:/N0. !61'5120~7% ~ - Dear Sirs: s the engineer of record for th,; q~.'.~- Treatment Plant we ho-* ~-~-~ . . g t Wa!tewater .... ~,.~. requestecl to provide thig letter c0nceming asCenainpan ofimpr°vem'lts,._:,vat~ ~: .... being fi~anced by ~e ~ity ~of Boston, Beach..Florida, ~od $~e~,Util}~y Reveh~e ~oa~, ~rie~ i99o '~e bond proceeds" -~f .,e'Use~ to ~und~an bdbr aba~m~nt -bmgmm throu h the constructioni2~: of~'' ~ ~lower .b~i]~fig ~ ~fffu~ ~aeidhb~ ~'vs~ g sys~m't ovements aer~fion"hn~;~ facility. Bond. p~ h' ..~ ,, '~ ~? ..... :~uvers~.~doa0r, treatment a5 wuf ~So he used .to fund improvements'~fi >~sion ~' ~': ~ ~ffiueqt~:pump statmn The following statements constitute the conclusions' :regardmg~" improvements- to the South Cemm[ .Reglon~.Wastewm~ Treatment PI~:. 1. The ex~stmg smffbf the S6uth Centrd~ ~reatment ~mnt hav~ ~s?nable ~xpe3ien~e"fi~J~fialificaUon me o~mfibh'of ~e ~fi~t~ r~.:',:. _5'~ ", ''~- ~V',.~ s for the p as well as been station and is viii be in our pcrmi~ bas I for Code ' percent chic , and is tral City of Boynton:Beaqh · Page :2 October 1. 1990 CAMP g · nder Cha ter 17-4.244 testing' at concentratxons allowed u p, , ..... .... Florida Administrative Code. Based on the current s~a~O~ of on oing negotiations, resoluti? ~of t.h~?,e' p~rmit~ aEp~a[¢ to be foX'coming. The~o~r~fibh:6~:w~gt~t~ t?~t~d,ht ~h~'~~'ping ' ie ~s m ul,ated through the-Fid~D~p~m~n~?,~' Environmental ~Regulat~on w~th momtoymg g~' ~5~i,,~,.-,-,~.~ ~ounty pUblic Health'Unit. '~: ........ The South in in Plant is curremly nC. aS .. $1,3 894000 im by bid not City of Boynton Beach Page 3 October 1, 1990 CAMP DRESSER & McKEE INC. 7. The useful life of the project being financed with the bonds is expected to be greater than the thirty years for which the bonds are. .°utstanding. This useful life applies to the structural and p~p~ng components of the project. It is recognized that during the course of normal use, the mechanical elements of the project (e.g. pumps: blowers, and other equipment) will require proper renewal and replacement and funds- should be set aside for the renewal and replacement of these elements. 8. Construction at the South Central Regional Wastewater Treatment Plant is scheduled to begin on October I. 1990 with completion 15 months later. This represents a completion of the project, reasonable time frame for 9. All representations contained in the official statement with regard to improvements to the South Central Regional Wastewater Treatment Plant are Correct. Sincerely, CAMP~...~c,,~DRESSER ~cKEE~'~,~ INC. Bruce R. Snyder, P.E. BRS/sek File No. 6171-01-CG-NSp APPENDIx F RATE CONSULTANT,s LETTEE CONCERNING RATE ANALYSIS DA WD M. G PROFESSIONAL SERVICES 1521-A KILLEARN CEN TALLAHASSEE, FLORIDA September 28, 1990 2¸- RE.-. City'ofB~)yntonBeach,_ - - . Flor/da Water and Sewer Util/ty Revenue Bon~s, S~ries 1990 Dear Sir or Madam: A s the water and sewer rate consu!tan, ts for the City of Boynton Beach, we have been reque,sted to pr0~'fde;thig let~er'conc~mme the W performed m the support of the i . ~,~ ..c,~._°,; , ater and Sewer Rate Analysis we ssu.m,,. ,,~ mC C, ty s Water and Sewer Utility Revenue BbndS,' Seri~s:l~990. We have ~appl~d/t ~tain a~_reed-upon prOcedures, as enumerated below,. . with :respect to.the~. City of Boynton Beach s (th City) Domestic Water and Sewer -Utility Syst~elns~. The':proc~ihr~ ~ve pbrfofmed were ~-i; rmnmg whether the Ctty's new sche ,,~ .-~ ...... ade solely for the purpose of deter- d~.,,. ,,~ ~a[cs can mdy support the City's Utility Systems Th~~p~ocednres. i ~ve perf0rmed"' i are: summarized.) ~ as follows.. We projected Utility System revenue requi/'~haeats f a ,d o?ratmg exp~enses, and we estimated ....... or capital ?sts, debt service, sou.r~. ' , : , . ' ' ~'-~c~mes reqmred trom each revenue We developed cost of service al/ cml o ---~ons a~.,.~ unit costs. We de~Tetoped'-and tbst~d alternhtf:ce rate strucm specml'cha~ es ' . ~:, res including connection and other City of Boymon Beach September 28, 1990 Page Two ented and presented our findings We presented preliminary d~aft re- er. Additionally, we have performed ma~em~isa~ ~ests' P'e:aainlng't°, ~.. ~ .~ _ m~ate Cove- nant Test to detCr~~e that: - ' ~ ~ ' (a) Revenues ~n each of the fiscal years ending September 30. 199i t~0ugh 1995, ~clusive, ~11 at least equal the sum of: (i) ' ~400% of.~rrent expenses ~o~ each' fiscal ye~; ~ o~ ~e rindp0[ ~d~ inte~eS, t r~q~nc , 100~ of the reseWe accoum deposi~ rgquirement for e~h fiscal year; ~re uired ~o be deposited in;~he Renewal and (iv) the amo~ q. " ' ' ~ction 705 of Replacement Funa outing eac,~ ~- a City Resokktion No..85rXYY- income from investmems of mOnieS el' Resolution, (b) c: Revenues,~ ex~lmive of at least equal to 115% of the prinfii~al iud interest No. 85-YYY, shall be requirements for each., fisc~ year., ._ on'ectural by nature and; no ~aramee is made as ro'e~o~ are c ~.. , ' -'- '" 'utilized certain ~ ,~.~x ac~uracv of projecuons g~w~ ,,, ~-, ~- oh2-~d b'g'understood mar assumptions provmeu uy u, auainabili~ of these results depends upon the ac~racy of ~e major assumptions used m~ing this determination. Significant variances from these assmptions co~d produce a different reset. City Of Boynt0n~Beach September 28, 1990 Page Three . · In connection w/th the procedures referred to above no matters came [o °ur atten- tion that ca~&~s.m:betieve t~at tlle ~ate coven eq~rements w hned m. Exh'i. bff~i,..Rate~O,~ii~a~£, W.,~: ~;.; '~ ~ ~.,. fll not be a~ aaac~ea ~e - do not consa~te~- · , ..... !eto ~cause the :_ L~ audlt'.made?m ac~rda C~-:,~,;*b ~';12, apove procedures ~ . ~ ~-~- ~ an opmmn.~.ona ~ fi~.h~z---r..~ ......... :~ p d au~tmg st~dards taken as a whole - .g~.,---w,~a~ $~atements orlhe City of Bogn~0n Respectfully submitted, D~;D~' D Mi Gi~!~!TH-~ ASSOCIATES, LTD. By: · Robert E::'Sheet~ Vice-l?rdSid~nt RES:bib Git¥ of Boynton Beach, Florida ~ater arz~ sewer Utility RevenOe Bonds, series 1990 . fy 1995 FY 1991 FY 1992 FY 1993 Fy199~ in Revenue ..... °48 O0 ,13,,~70,365~00 operat B .,. 9 097,2 9.00 10,545,45 . 9,052,015.00 Be.e other Revenue ....... ======================== ..... ~;. ~..nn 20 895,305.00 Z ~ ' ' ============ ........ e~ses · _ ~ ~ z 5 ~£~,520~ 34~ .00) ' ',- Uat~F System ' ~7~ 9~ OO),~.~,~,~,~,-~'~h~do~.~ · C~3,76o;oo) ,~,~'~ ~ ' '~t e~~ rises -~nnn na~ ~'~;M~~oOOJQO~ (2~O~y.~u~ ~ L~___~=~=~===~===~==~- ~==~?~-~-TT~ ,. ~i' ? b 907'~-Ou)~'''~''' ..... 0 ( _ -?,t~.~ ~ ' ~,949,146.00 5,199,656-00 6,402,500.00 7,351,295-00 9,260,631.00 at]n Revenue ...... ~5 O0 20~ 407.50 , -~,~=~'a~''~O~ 657.50 2,085,8 ~ ~.z A~ 50 2,254,360.00 - --~ ~e~oebt service 2,~t~-~ ~'2~0'145 O0 2,254,990.00 ~,c~,:_~ ............... Ser~es 1990 Oeot ~er ====~=c===~=~ 1.20 1.47 1.70 2.14 Net o~rat~n~ Revenue ~3~9~,~80j: 5,19~,656.00 6,402,500.00 7,351,295.00 9,~60,631.00 2,62~,785.00 2,804,605.00 2,999,031.00 Investment Income 2~29~,~92~00~ 2,455,6~1.00 Gross Eevenue --6'248;338.00 4,335,372.50 4,3~,767-50 Total De~Servlce ),402,414.58 4,338,812.50 4,340,822.50 Coverage from ~ater and 2,08 2.34 2.83 Wastewater Rates & 1 84 1.76 ....... ===================== investment Income ..... ~ .................................... Source: David M. Gr{ frith and Associates, LTD. _ ...................................... -~ ENTERPRISE FUNDS The ~nte~prtse ~unds r~or~ b~ .... provide ser~i~s~h~.~ ~_~_~_ hat .... are zln~nced primarily by USer charges, or activities where periodic measurement of net income is appropriate for control ~e, p~b!ic poli~y, management aer purposes. W~ater and Sewer FundLiT~is fund is us account for t~ ~ ed ~o ~.~' ~ " ~ cons%ruction, operatio mathtenahc~ o. ~ ~ ~c~- n and''~ ~_, ~ · ~ ~ ~e ~ater Department and the~ ~u~ s snare of the Regional Wastewater Tf ment Plant · 'f.~, ea~- erea. ti~a! Eacilftles ~ This fund' iS ~sed to ~ad%~i ~ es Fund?r~ : tton, operation and maintenance of the muni- cipal golf course. Sanitation Fund--This fund is used to account for the municipal sanitation collection and disposal .services. -69~ COMBINING BALANCE SHEET--ENTERPRISE ~UNDS CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 ASSETS Current assets Cash (overdraft) Equity in pooled cash amd investments ~ Accounts and notes .~. receivable, n~6~' Due f~om fis~gi agent Due from other fu~dg Prepaid sxpenses Inventories TOTAL CURRENT ASSETS~ ~'i. , .... ~nton Beach Recreational Facilities Sanitation Wgter and 26~973~316~ , 271 883 167,979 218 ~ i,66o, 2,~00 2,0~7 ~ 2'~,3,~ 3~g~55¢'' 7~07,197 102) 27,413,178 1.594,332 16,354 303,360 4,977 29.387,i16 Restricted assets Bond requirements Capital improvements Gustomer deposits Renewal and replacement TOTAL RESTRICTED ASSETS 3,444,166 770,379 804,077 1,153,267 _2,8~6_k,_a 3a ..~ 8,248,348 870,379 4,214,545 804,077 1,153,267 2,9__46,838 9,118,727 Other assets Deferred charges investment in Regional Wastewater Treatment TOTAL OTHER ASSETS 333,193 91,130 10 931 865 11,265,058 91,130 424,323 10,9 11.356,188 Property, plan£ and equipmenn Less allowances for depreciation TOTAL ASSETS 74,561,876 18 285.566 56 276 3lQ -70- 3.759.253 1 069 936 ~689,317 246,388 166.49~ 79 890 78,567,517 19_522 000 59 045 517 LIABILITIES AND FUND EQUITY -- Current liabilities (payable fr~m current assets) *Accounts payable ~ - Accrued payroll ~Refuhdable deposits Revenue coit'e6t.e~,in advance Gdn~racts payable Boynton Beach · ~' Recreanional "~ Water and Facilities Sanitation ~ -~'~:Sewer Fund . FuDd Fund 871.,382 $ 16,614 4,0~.<'~ %otal ~ 1,229 ~-~231~$10 21,854 Cdr~fn~-liabilities (Payable ~fro~n restri ered ~assets) - .... Accrued revenue bond ' ,interes~ ~Current port,on of revenue 5~5~550 149,428 bonds payable - - Centracts payable 875 ~O00 130,000 CBs~Omer deposits 716,907 ~ 3~ 26~0~ 72~ 279,428 Other liabilities Compensated absences payable 363,696 Accrued capital appreciation 60,683 bond interest Revenue bond~ payable, le~s 891,437 current portion U~gm~:r~ized bond discount 17,277,814 3,640,000 18 167 683 TOT~ LIABILITIES 3 628 917 22,659,917 3,930,199 Fund equity (deficit) Contributed capital Retained earnf~s 53,446,774 ResD tved for Revenue bend ~ ~ebt Capital improvements 2,053,6i6~ 490,951 Renewal and replacement 87,170 ~nreserved (deficit) 2,846:838 2t~3 $=? '~,~I00,849 8,160 ....... ~,:~ 32,021 ':'~'' ~ '-~'~340,278 ~ 1,229 399'50~ ~ : ~99~505 620i5~8' '~ :~/873,882 66~, 978 1~O05,000 ;~ 716,9~7 1:1~3.267 3,540,152 239,471 663,8~50 891,437 20,917:814 ~ 22 036 071 ' 859,'989 27,450,105 ~3,446;774 2,544,567 100,000 - 87,170 23' 035,746 ~) ~ 2,946,838 ~) 22 432 094 TOTAL FUND EQUITY 28 023 370 _ 67 201 7~) 2~=010 66~ .. (DBF c T 8! 470 -71- BINING STATEMENT OF REVENUE, EXPENSES AND CHANGES COM IN RETAINED EARNINGS (DEFiCiT)--ENTERPRISE FUNDS CITY OF BoYNTON BEACH, FLORIDA Year Ended September 30, 1989 /~ Bos~nton Beach -u ~ Recreational 2. : d F~c~.lities Sanitation .... ' '~ewer FU~d FUnd ~~- Operating revenue Charges for ~servtces Water sales~ -~' co~g%i-~n charges ,~at~r . .~-~ ._ :,~S.eWer service ' Garbage fees Dues -G~art and g~ :f~es S~le of merehandlse intergovenmental TOTAL OPERATING REVENUE O~e.r:ating expenses Amortization Depreq~atton Depreciation on Regional ~ ~astewater Treatment Plant OPERATING INCOME (LOSS) Nonoperating revenue (expenses) ~tnterest income Miscellaneous income Interest expense ~isc~l.agent,s fees iNCOME~(LOSS) BEFORE OPERATING TRANSFERS Operating transfers in (out) Operating transfers in Operating transfers out NET INCOME (LOSS) Transfer of depreciation on contributed capital Re~ained earnings (deficit), October 1, 1988 RETAINED EARNINGS (DEFICIT), SEPTEMBER 30, 1989 490,961 166 1,049,166 24,903 24,903 i30,161 130,161 ~o =~n ~ 1,695,±~£ ..... ~.' ~' ~297 409 5 33g-~.~1~- ' 6,4~2~993 ~ 009.078 4,83 ,, 47,318 11,416 ~' i 1,9~75,'609 215,421 3Z.~30~: 337 2,400,133 459,276 82,044 306 78~6t6: . .... ~ ~ .-~ ~< ~89+7bw 3~063,457 97,'813 82,265 :' ~ (~86~,000) ( 1,502,621) ( 359,379) ,,/~ !L(ic~!75~854) < . 882) 'i.5, 6 6Vz < 952> 4,053,810 263,324 ( 120.813) 4,196,321 4~000 · 105,108 2o1,ios _( 1 233 548)~) ' 2,218,379 2,820,262 234,416 ( 836,299) ~1,061,432 1,061,43~ 24~141 676 ~) 756 397 ' 24 730 85~ -72- COMBINING STATEMENT OF CHANGES ENTERPRISE FUNDS CITY OF BOYNToN BEACH, FLORIDA Year Ended September 30, 1989 IN FINANCIAL POSITION-- SOURCE OF FUNDs Net income Current outlay 0f-~k~; capital Depreciation Accretion of discount on capital apPreciation bonds ~A~nortiza~iD%~f debt iSSue expenaes and bond discount . WORKING CAPITAL PROVI~ED BY - (USED IN) OPERATIONS Contributed Increase in compensated absences PaYahteh.- Increase in ~urren~ liabili- ties payable fr~m restricEed assets Book Value of ~ss~e~s disposed of Boynton Beach Recreational Water and Facilities Sanitation Sewer Fund Fu_nd Fund Total 2,82~2~h'~. '~[' . ~ 234,416 $( 836,299)~ 2,218,379 2,499,482 215,421 261,226 ~7-318 _ ~ 32,3.O7-! 5,62g,288 461,253 5,~9~,01] 17,259 564,899 6~252 APPLICATION OF FUNDS Inet.ease in investment in Regional Was.tewater Treat- ment Plant Increase in ~rope~ty, plant and equipmcnt Decrease in compensated absences payable Increase in restricted assets Decrease in long-term debt INCREASE (DECREASE) IN WORKING CAPITAL 11,687,198 51~124 8,419,-669 49,107 584,948 875 OOQ 10 442 848 484,764 19},292 6,253 130 000 327.545 Continued on next page. 2-;7~7,210 261,226 · - 58 734 (803,:992) 5,285,549 " 5,494,011 27,725 44,984 571,151 1~2 132 (776,135) 11,395,827 514,124 29,781 8,640,742 49,107 591,201 1 005 000 29.78% 10 800 174 -73- COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION-- ENTERPRISE FUNDS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA Year Ended September 30, 1989 CHANGES IN COMPONENTS OF >WORKiNGiCAPiTAJ3 L~ Increase (decrease) in current assets _ ~,_Equity in pooled cash and investments Accounts and notes receivable, n~t ~ Other receivables Due from fiscal agent Uue f~Onf,~t~ie~fund~ ~ ~Yepaid expenses inventories Boynton Beach Re( ~eattonal 1,341~195 $ 74,402 30P~,512 . ~ 560 39,789) 3~308) 4~600~' ' 3'0U,, 10~ ' - 7%884) ( 2,364) _L_ 5,~2.) 578,099 ( 14,708,) ( ' 6,54g) ( 1,136) 75,532 Increase (decrease) in -current liabilities AccountSpayable Accrue~ p~yroll and "payroii liabilities Refundable deposits Revenue collected in advance Contacts payable INCREASE (DECREASE) IN WORKING CAPITAL 672 158 ~042~r. ~.~ 459,11 1,292 ( . ~ 12,511) ( '~ ~1,636,263 ( 2,215) ( 9,899) 75,532 69,399) ~ 243_) ( 69,3'99) 39~_~50~ 3995~05 -74- SCHEDULE OF OPERATING EXPENSES--ENTERPRiSE ~UND$ CITY OF BOYNTON BEACH, FLORIDA Year Endad September 30, 1989 Sanitation Administration Maintenance Carts Engineering Utility billing Water supply Water treatment plant Wa~er distribution Meter reading and services SevagecoIlection Se~gePu~Piz!g stations Sewage tregtment plant Utility mechanics ..... -- . Bp~Y~ton Beach Recreational Water and Facilities Sewer Fund _Fund g 508,982 458,509 '441,408 109,161 ~ ~lTj46.Q~ General administration Nonbudgetedexpense~ · - 664 Bad debts~ net of recoveries 28 744 TOTAL OPERATING EXPENSEs ~ 212,576~- 181,830 1,429,841 417,072. 374,950~ 514,789 :_:._ 884,900 ~1,067,360 569,116 44,710 Sanitation Fund _ Total _ ~ 4,814,480 $ 4,814,480 967',490 441,408 109,161 217,460 212,576 181,830 1,429,841 4~7,072 374,950 51~789 8~4,900 1,067,360 569,116 44,~10 664 20 858 -- 49 602 -75- SCHEDULE OF CHANGES IN PROPERTY, EQUIPMeNT--ENTERPRISE FUNDS CITY OF BOYNTON BEACH, FL£RIDA Year Ended September 30, 1989 PLANT A~D ' Land ,Buitging~ .' B~es ]~E~uipment ,W~I1 ~ Construction in progress iE,ew~ department L' La~d ~% 5i~es ~ % ~R~tpment ~,~,,~structton in progress General Equipment RQS~n~qnBeaeh Recreational Facilities Fund Golf course Land Buildings Improvements Equipment Sanitation Fund Equipment October 1, $ 65,696 6,6~6,676 ~18,692~9~ %~2,263,834 ~2,831,578 521,945 ,% .2,t83,097 804,794 h 7,728,574 139,13~ 23,808,199 ~ 1,568,181 ' ,: 234~376 Cost Balance, DeductiOnS/ September 30, Additions Transfers 1989 $ 65,696 6V606,6~6 3~553+523 2,987~-89~ 1,385,186 ~ 3~; ~458 ~ 171 1,556,790 , 74~501~'876 1,356,467 1,356,467 547,166 547,166 1,100,439 1,069,212 31,227 592,292 17~ 11677 3,565,137 2-~---~5,793 11,677 3,759,253 21~ --~ 1991 24638~ -76- September 30, · 1988 Additions Deductions ~I989 2,758,114 z19~,223 2,767,888 378,401 1,948,337 1,788,789 164,793 3,146,289 847,435 1~3,915 1,953,582 991,350 7,162,226 877,332 -- 8,039,558 4,111,938 478j778 4,976,957 611,328 9'088j895 1,090~106 58 836 16,309,957 8 171 1,975,609 4,590,716 5,588j285 10,179,001 67,00Z 18,285,566 Net Book Value_ 65,696 4,658,339 17,810,483 1,399,94~ 1,996,~41- 30,961,046 139~1~37 20,7~5,6~64: 3,963,173 · 3~6__~z~7~9 25,284~703 30 561 56,276,310 59,214 13,679 422,154 85j660 370 324 130~582 851,692 229,921 136 050 32 30! 11 677 11,677 1,854 72,893 507,814 489 224 1,069,936 166 49~ 1,356,467 474,273 592,625 265 952 2,689,317 79 890 -77- SCI{EDULE OF REVENUE BONDS AND ACCRUED INTEREST PAYABLE--ENTERPRISE FUNDS CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 Water and Sewer Water and Sewe~, Re~enue Bond Issue o~f BoS~nton BeaCh Recreational Facilities Fund Recreationai~-F~eiltties Revenue iBo~ue of 1982 2 Due Wi bhin oue ,- Tote~ One Year ~ - t '· ~ !8,152,_814 INTER~ST PAYABLE 875,000 '-Aceru~ed Interest payable, -78- APPENDIx D ENGINEER,S STATEMENT ON CAPITAL IMPROVEMENTS AND ADDITIONAL BONDs TEST APPENDIX G FORM OF BOND COUNSEL OPINION APPENDIX G F0rm of Bond Counsel Opinion · Oct°ber~, ~ , 1990 Cit~ of Boynt~nB~ach,,~- ~lor~da~ ~ 'Palm Beach Co~ i~-10~rid~ ~' RE: ~-ate~. :,~/ancl;~ .,~.~Sewer~ ~ ~'Utll~t/~''~-''~u~l ~eaca,~ Florida, Ser~:es-~1990 [ .Y Revenue Bonds, Ladies and Gentlemen: ~ We have acted, .~as bond Counsel in connection with the issu and Sale by Ci~y~-~f~ B0Ynton ,BeaOh anc ~'~ ~ agg~e~ate ~LY. ~. :~ , .Florzda (the ~"tss ......... e ~evenue Bond~' ~'~ '~ F~lpal amount Wa~ ~u ..... ~ ~ ~' ~grles t990 fthe~ ~_~' J- ~ anu Sewer Utility nar~--~- .o ~on~tltution. and' ]~ ;. The Bon~s are-issue = ~utar~y the ~-&~ - ~ -~Ws of . the St=~,,~ . ,, ~,: ~er of the v ..... ~ ou=ue o~ Florid~ ~uu=s co~ · - _~ ~ ~oou=r and ~% -: 19Cta~el . ~ Chapter · adopted by ~h~ T- y' t~9~ Act"), and 'R~n~'..=. 166, ~Florzda supplemented ' (A&~ .._ . 0vember 19, 1~985 -- . 85-~ can~=]~--= - ~%~ , ~esol~tio~.%. ~, .~ · ~ , amended a meanings ascri 'e~ :~hm~-- .- , ~rwlse defined- erm~n b ...... to in the Resolution. h ..... ~:xi nave the The Bonds have been issu - Bonds for-t~e' ~-~i_]:i_ 2 ~ed in the] form of const~.~ , '_1 .~.~y~=~ or pr0'vi~in.' ~, - ~ ~l~y registered .... ~=~ certain~ addi~n~ ~ ,1 --~ ~unds to (i% ac-,.~ cer~- _~ ~---,~' 3I~.~ nund a d~h~ -~- ---~ o water and s~w~r In rendering the opinions set forth herein, certified coPies ~ ~ ~f t~e Re representstin~' i~,. ~ ~ -~:~olution an~ ~= we have examined ~--~, ~uuvenants a~ _L · ~-, .... relying on the ,~u ~reements of the Issuer contained therein,~ including4.~. ~.~ithout~ limitation,, the COvenant of: the ISsuer 4599M City of Boynton BeaCh, Florida October --, 1990 page 2 · comply with the applicable ~ ~ ' the Resolution to : t IV of subcha~ter B ntsl~.ed in ' '103 and par co : in S~¢tlon s amendea~ and uirements contained ua. Code of 1986, a req al Raven e ulatlonS m~ Chapter 1 of the Intern · ~ma~ent implementing promulgated ther .... :~rve the exclusion of m~t~ ent necessary.~O P~V~'i~:~m~for ....... ~come tax purposes. ~ds from gross income As to of upon r~ the upon public dent various P us, without un investi~at{on' on all ,aocuments ~. of submltte~ as original;~' documents submitte~ as CoRles. the an The opmne ~ ~h e as o date and ~ ~ ~te'd,:; and '~ 'bee 2. f-:T~e BOn~lS" ha~e v~lid and b~d~ng spec~a~ delivered by the Issuer and are obligations of the Issuer, payable solely from t~e sources provided therefor ~n the Resolution. 3. The interest on the Bonds is excludable from groSS ~ncome of the Owners thereof for federal income tax purposes and is not an item of tax preference described in Section 57 of the Code for 4599M City of Boynton Beach, October · 1990 Page 3 Florida ~urposes of the federal alternativ ~d~i~u~!s and corporations. ~t is ~ Lmini~u~ tax imposed on ?v u~r~aln corporations such inter- .~u ue ~oted t~at with respect · ~s~ may De required to be taken into account in determining adjusted net bo~k income and/or adjust~ed Current earnings for purposes of calculating the alternative minimum· taxable income o opinions expressed in ~ ~ .... f such corporations. conditioned u ....... ~= ~z~E sentence of thi~ n'ranra~h The ~u~ uunnlnulng complianc~ ~- ~= - ~--=~ are ~ ~3 une ISSuer with various COvenants contained in the Resolution, including, without limitation, its covenant to comply,w'ith applicable requirements of the Code necessary in Order to Dreserv ,: on the Bonds from ..... :,, _~ _e the exclusion of ' · ~ ~n~ome . · interest Failure by the ISsuer ~ .... ~?~ ~ederal income tax nurDn~e~ · . ~u ~u~ply Wlt~ such, ~equ~rements co~ld~cau~e the Interest on the Bonds to be Inclu~able in gross income for thefederal Bonds. income Other tax purposes retroactiVepr0visions of t to t~e da~e o~ issuance of collatera · ' ~ ~ ~ he Cod . · ~ 1 ~ederal Income t'ax con~ ...... e_.m~y give rise to uu parElcul~r Ho lder~ ~. ~m~=~u~%wnlca may be a . : -o. ~nlS o ~in . . dverse) expressly, addressed a~.=, ....... ~n~ P ion. . is .limited to m~ters regarding other ~ ~_ ~o opinion is exDr ssed ~ Ownership of the Bonds. nseque~ces that may arise due to 4. The Bonds are exempt from all present intangible personal property taxes imposed by 5he State of Florida. Our opinions expressed herein ara predicated upon present laws and interpretations thereo~. We assume no affirmative obligation with respect to any change of circumstances or law (including laws that may result from legislation pending before Congress) that may adversely affec~ the tax-exempt status of interest on the Bonds after the date hereof. It is to be understood ,that the rights of Owners of the Bonds and the enforceability of the Bonds and the Resolution may be subject to the provisions of the bankruptcy laws of the United States of America and to other applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting creditors, rights, heretofore or hereinafter enacted, to the extent Constitutionally applicable, and that their enforcement may also be subject to equitable principles that may affect remedies or other equitable relief, or to the exercise of judicial discretion in appropriate cases. Very truly yours, MOYLE, FLANIGAN, KATZ, FITZGERALD & SHEEHAN, 4599M APPENDIX H SPECIMEN MUNICIPAL BOND INSUR~/NCE POLICY / - Cort~Qmti6n 222 W~s~ Washin~to Madison, Wisconsin 55705 Administrative Office: One State Street Plaza New'fork, New York lO00q Policy iSsued to: Attached to and forming part of insertiOn,olde viaue of cogntersignatm¢ hy its duly, authorized agent Secretory Authonzed Representative Bond insurance Policy do( PolicyNumb~: AMIIAC la~demnity Corporation (AMBAC) AWmConsin Stock Insurance Company hereby ~grees to pay tatbe United benefit of Bondholders, rlmt } which shall become Due for AMBAC of Nonpayment the claimant Bondholder or of the Bondholders' rightS to Stated gtc) Bon6S which a~ virtue has ~g~eed to perform the duties of Insurance Trostee uncle '-~- Authorized Representau~ Endorsement ~MBAC Indemnity Cx3rFx3ra rion c/o CT Corporation Systems . 222 ~qe.st XY&shington AVenue Maduson Wiscortsm 53703 Policy issued to: Attached n) and forming part of Effective Date of Endorsement: The insurance provided by this policy is not covered by the Florida Inst Nothing herein contained shall be hel limitations of s, provisions, agreements or In Witness dui virtue of Corporate Seal to be herero aff~xed and these presents to be s~gned by its ea~eCtni~e as its original seal and signatures and binding on the Company by AMBAC Indemnity Corporation APPENDIx I ACCRETED VALUEs TABLE 4578M/25 EXHIBIT "D" Official Statement t:~kELIN~-t-N-AR4NOFFI~TATEM-E5~. DAT~I~-OCTOE;ER 3.' i99[r~ NEW ISSU~BOOK E~RY ONLY City of Boynton Beach, Florida Water and Sewer Utility Revenue Bonds, Series 1990 Dat~: October 1, 1990, except for the Due: November 1, as shown below CapiO Appreciation Bonds, whi~ shah be dated the date of delivery The captioned Wat~ and Sew~ Utility Revenue Bon~ (the "1990 Bonds") are ~ing issu~ by the City of Boynton Beach, Florida ("the ~ty') in the fore'of fully re~stered ~n~ wk~ut ~upo~ and will be initially r~stered to ~e & Co., as aomin~ of The Deposito~ Trust Com~ny, New Yor~ New York ( ~DTC ), which ~11 act as ~udfi~ dep~ito~ for the 1990 Bon~. lndivid~l purch~ will be made in bbok~l~ fom~ only and the p~elms~s will not r~eive physical delivery of the 19~ Bonds or any ce~ifi~te repr~enfing thei~ benefidal omemhip integer in the 1990 Bonds. The 1990 Bonds ~11 ~ avaihble to the purc~, in the principal denominations d~d~ below, under the bookmnt~ system ~i~in~ by DTC through brokers ~d d~le~ who ar~ or who act through, DTC Pa~idpgnts. Eor so long as DTC or its nomin~, ~e & ~., is the regarded owner of the 1990 Bonds, paym~ of principal ~d inter~t will be made ~r~[ly ~ ~e & Co. Disbursem~t of parrots of principal and inter~t to individual purchasers is d~ u~er I~e h~ding Book-Em~-Only Syst~' ~r~n. The 19~ Bonds maturing on or prior to Novem~ I, 20 I~ are ~ent InterestBon~ (as defined h~ein) and sha~ ~ av~table to the purc~s thief in the authoriz~ de~mi~tio~ of~,~ ~ch or in~ rout ipl~ theft Int~est on the 1990 Bonds ~at are Cu~t Int~t ~nds Mll ~ payable s~i~au~[7 on ~ch May I ~d No~emb~ 1, co~endng Ma~ 1, 1991, ni the mann~ d~d a~ve. The 1990 ~ ma~g on or a~er November 1, 201~p~l Appr~afion Bon~ (~ defin~ herein) ~d sh~l be a~able to the purcha~ in maturity moun~ of $5,~ or inte~l multiples t~mof. ~e ~n~dal Owners of ~e ~pit~ }App~hfion B~ ~II not be en~fled to the pa~ent of int~t fher~n unfit ~e ~tu~ty or r~mpfi0n ~of. The 1990 Bonds are subj~t ~ red.oh prior to mtu~ty as m~e f~ly d~cri~ herein. The 1990 Bo~ ~e ~g ironed pnrsuant to a resolution ~opt~ by the City for t~ pu~ ~ {i) provi~ng funds for the acquisition and cons~cfion ~in ~ and.improyem~ts to ~e City's water and s~er ~i~ syst~ (ii) funding a d~t se~ice r~e~e and (lib paying ~ain ms~ofi~ning the 1990 Bon~. The 1990 Bon~ ~e li~d.~h~m ~ ~e Oty p~able ~ldy ~m th~ ~t rev~es (~ herein ~fi~), ~n i~act ~ of the System (~ here~ de~. ~oe~e~'~.~g~nc~ a~nst ~e to or ~cfioa of the system, ~dgm~fion ~ar& a~ ~ of pro~y, eemin ~n~ h~d under ~';R~o~ (~ h~em ff~fin~ a~ ~v~tment m~me th~eon, ~d mon~a~r~le to t~ pr~ 0f ~e 1~ Bonds. The 1990 Bonds ~ not m~te a gener~ obH~fio~ debt or li3bili~ of ~e ~ or of ~e S~e of ~o~da or ~y poliff~l subdiv~ion, ~cy ~ ~me~i~ bf [~e City or ~ StYe of ~ori~ wi~ ~ m~g of ~e ~ori~ co~ti~o~ ~d neith~ the ~H ~ ~d cr~t nor the ~in~w~ of ~e S~te of;~i~ or ~e ~ ~e pl~d as ~u~Fy for ~e ~en~ of ~e prin~pat of or ~ter~t on the 1~0 Bonds. ~e Oty h~ r~iv~ a commi~ent ~om AMBAC Ind~ffi~ Co.ration for a policy of munici~l ~nd nimra~ m insure · e pa~ent ~due of the Efineipni of and inter~t on ~e 1~0 ~nds. In the opinion of Bond Counsel. ander existing law and assuming continuing compliance by the City with certain covenants, interest on the 1990 Bonds is exe ud_ed from gross incor~e for.f~deral income tax ptmpo.ses anti ~nterest on the 1990 Bonds is not an item of tax prfference for purposes of the federal ~Itematwe rmmmum tax imposed on mdiv~daals and corporations. See, however, the Lm%rmation under the heading "Tax Exemption" herein for a descn'pti6n of certain taxes on corporations and for a discussion of certain other tax consequences to holders of the I990 Bonds. Bond Counsel is also of/he opinion that the I990 Bonds are exempt from ail present intangible personal property taxes imposed by the State of Florida. AMOUNTS, MATURITIES. INTEREST RATES AND PRICES OR YIELDS* $ Current Interest Serial Bonds Interest Price/ interest Price Mat uriv~ Rate Yield...~q f~f Amount Maturity Rate Yield $ ~,~,,5',ooo Current Interest Term Bonds due ~ovember I, 7.~v ~'~Price % ?.z?o $ ~,o~o,o~o Current Interest Term Bonds due November 1.zmo --Price %?gs'[ *o~hl2d 7-5-2o Cap~tal°t pprecmtion S~e?t,~l Bonds 7. ~t% co~ qY. 6z~. g~ Original Approximate Principal ~ Value at Yield to Amount Maturity Maturity Maturky The Bonds will be offered when, as and if issued and received by the Underwrizers, subject to the unqualified approval of legality and tax-exempi status by Moyl~. f/lanlgar~ Katz FitzGerald and Sheehan. PA.. West Palm Beach. Florida. Bond Cdunse[. C$rtain legal matters will be passed upon for the City by its City Attorney. dosias ~ Gore~. Fort Lauderdale. Florida. Certain legal matters wit] be passed upon for the Underwriters b) their counsel. Mayer. WoIlett & Rossow. Palm Beach Gardens. Florida. It is expected that the 1990 Bonds in definitive form will be available for delivery to the Underwtqter~ in ~¥ew York. dVew York on ~r about October 24. 1990. Smith Barney, Harris Upham & Co. Southeastern Capital Group, Inc. Incorporated Alex. Brown & Sons Smith, Mitchell & Associates, Inc. Incorporated CITY OF BOYNTON BEACH, FLORIDA OFFICIALS CITY COMMISSION Gene Moore, Mayor Lee Wische, Vice Mayor Arline Weiner, Commissioner Robert Olenik, Jr., Commissioner Lilian Artis, Commissioner CITY OFFICIALS J. Scott Miller, City Manager Carrie A. Parker~ Assistant City Manager John A. Guidry, Utilities Director Grady W. Swann, Finance Director Suzanne M. Kruse, City Clerk CITY ATTORNEY James Cherof Josias & Goren, Fort Lauderdale, Florida CERTIFIED PUBLIC ACCOUNTANTS Ernst & Young West Palm Beach, Florida Moyle, BOND COUNSEL Flanigan, Katz.. FitzGerald,& Sheehan, West Palm Beach, Florida CONSULTING ENGINEERS CH2M Hill Southeast, Inc. Deerfield Beach, Florida Camp Dresser & McKee, Inc. Fort Lauderdale, Florida Poa. David RATE CONSULTANT Griffith and Associates, Tallahassee, Florida Ltd. No dealer, broker, salesman or other person has been authorized ~o ~ake any representations, other than as contained in the Official tatement, and if given or made, such other information or epresentations must not be relied upon. This Official Statement --~oes not constitute an offer tc sell or the solicitation of an offer to buy nor shall there be any sale of the 1990 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 accuracy, is believed to be correct. Any statements in this Official Statement involving estimatesr assumptions and matters of opinion whether or not so expressly stated, are intended as such and not as representations of fact, and the City expressly makes no representations that such estimates, assumptions and opinions Will be realized or fulfilled. No information,~ estimates, assumptions and matters of opinion contained in t~is Official Statement, or any sa~e made hereunder sha~l under any circUmstances create ~ny implication that therehas been no change in the affairs of the City since the date hereof. IN CONNECTION ~ITH THE OFFERING OF THE 1990 BONDS, T~E UNDERWRITERS ~/~AY OVERALLOT OR EFFECT TP3~NSACTIONS THAT STABILIZE OR MAINTAIN THE !F/ARKET PRICE OF SUCH 1990 BONDS AT A LEVEL ABOVE THAT WHICH MIGHT ~iOTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. i TABLE OF CONTENTS INTRODUCTION ................................................. DESCRIPTION OF THE 1990 BONDS ................................ REDEMPTION PROVISIONS ........................................ BOOK-ENTRY-ONLY SYSTEM ....................................... SOURCE OF PAY~IENT AND SECURITY FOR THE 1990 BONDS ............ THE 1990 PROJECT ............................................. ESTIMATED SOURCES AND USES OF FUNDS .......................... OTHER CAPITAL PROJECTS ........................................ DEBT SERVICE REQUIREMENTS ............................. THE CITY ............................................. THE EXISTING SYSTEM .................................. WATER AND SEWER RATES AND IMPACT FEES ................ HISTORICAL AND PROJECTED REVENUES AND EXPENSES ....... RATINGS .............................................. LEGALITY ............................................. 1 2 4 6 9 17 19 19 ....... 21 ....... 21 ....... 22 ....... 26 ....... 30 TAX EXEMPTION ................................................. 33 UNDERWRITING .................................................. 35 LITIGATION .................................................... 36 AUDITORS ...................................................... 36 CONSULTING ENGINEERS .......................................... 36 RATE CONSULTANT ............................................... ~ ii ~UTHORIZATION OF OFFICIAL STATEMENT..~.. ..... 37 APPENDIX A -- GENERAL INFORMATION / CITY OF BOYNTON BEACH/AND PALM BEACH COUNTY/....A-1 APPENDIX B -- SUM/~ARY OF CERTAIN PROVISIONS OF THE RESOLUTION .............................. B-1 APPENDIX C GENERAL PURPOSE FINANCIAL STATEMENTS OF THE CITY OF BOYNTON, BEACH, FLORIDA FOR THE YEAR ENDED SEPTEMBER 30, 1989 ........................ C-1 APPENDIX D -- APPENDIX E -- APPENDIX F -- ENGINEER'S STATEMENT ON CAPITAL IMPROVEMENTS AND ADDITIONAL BONDS TEST ..................... CONSULTING ENGINEER'S STATEMENT REGARDING IMPROVEMENTS TO REGIONAL WASTEWATER TREATMENT PLANT ............................... RATE CONSULTANT'S STATEMENT CONCERNING RATE ANALYSIS ................................... F-t APPENDIX G -- FORM OF BOND COUNSEL OPINION .................... G-1 r"~APPENDIX H -- SPECIMEN MUNICIPAL BOND INSURANCE POLICY ........ H-1 ~PPENDIX I -- ACCRETED VALUE TABLE ............................ I-1 iii EThis page intentionally left blank] OFFICIAL STATEMENT $- , : , : City of ~oynt°n Beach, Florida Water and Sewer Utility Revenue Bonds, ~eries 1990 INTRODUCTION The purpose of this Official Statement,/including the cover page and appendices, is to set forth certain i~formation concerning %he sale by the City ~f Boynton Beach, Flori.~ (the "City") of its Water and Sewer Utility Revenue Bonds, Ser~es 1990, dated as of O~tober 1, 1990 (except for the 1990 B/6nds that are Capital Appreciation Bonds, which shall be dated~ate of delivery), in t~e aggregate prin6ipal amount of $~,00~,300* (the "1990 Bond~"). All capitalized terms in this Official Statement not otherwise defined shall have the meanings set forth in Appendix B hereto, unless the context clearly indicates otherwise. The 1990 Bonds are issued under and secured by pursuant to 3Resolution No. 85-YYY adopted by the City Commission of the City ~the "City Commission") on November 19, 1985, as amended and .~upplemented by ~esotutions No. 85-ZZZ and No. 85-AAAA adopted by ~he City commission on November 26, 1985 and No. 85-JJJJ adopted ~'~y the City Commission on December 17, 1985, and a series ~esolution authorizing their issuance and providing for the details ~,~hereof adopted by the City Commission on O~ ~0- 1990 (the ~ .1990 Serzes Resolution ) and the Constitution an~ laws of the ~.state of Florida, particularly Chapter 24398, Laws of Florida, Acts ~of 1974, as amended and supplemented (the home rule charter of the 2ity), and Chapter 166, Florida Statutes. The 1990 Bonds are issued as Additional Bonds on a parity with the 1985 Bonds ~(hereinafter defined). Resolution No. 85-YYY as amended and .~upplemented by Resolutions No. 85-ZZZ, No~ 85-AAAA, No. 85-JJJJ ~nd the 19.90 Series Resolution is hereinafter collectively referred ~o as the "Resolutions." Copies of the Resolution are on file with ~he City at the office of the City Clerk, and reference thereto is hereby made for a complete understanding of the terms of and ;~ecurity for the 1990 Bonds, the custody and application of the ~roceeds of the 1990 Bonds, the rzghts and remedies of the holders ?~f all Bonds (as hereinafter defined) and the rights, duties and ~bligations of the City. The 1990 Bonds are limited obligations of the City secured ~qually and ratably with the City's outstanding Water and Sewer tility Revenue Bonds, Series 1985 (the "1985 Bonds") without preference or priority of one bond over another bond. The 1990 Bonds and the 1985 Bonds are secured and payable solely from uertain revenues of the City's water and sewer utility sys=em (the "System") and certain amounts in funds and accounts held by the City in trust for the benefit of the holders of the 1985 Bonds, the t990 Bonds and any Additional Bonds (hereinafter collectively referred to as "the Bonds"), as more fully described under the heading "Source of Payment and Security for the Bonds" herein. Neither the fa-ith'and credit nor the~taxing power of the City, the State of Florida or any political subdivision thereof shall be pledged to the payment of the principal of or interest on the 1990 Bonds. The 1990 Bonds are being issued by the City for the purposes of providing funds for (i) the costs of certain replacements, additions and improvements to the City's existing water supply and water distribution system, construction of a new west water treatment plant and appurtenances thereto, and construction of certain replacement rehabilitation and expansion Lmprovements to its wastewater treatment and transmission system, as more fully described under the headinq~ "THE 1990 PROJECT" herein (and hereinafter collectively referred to as "the 1990 Project"), (ii) funding a fully capitalized reserve account for the 1990 Bonds within the Reserve Account originally established in connection with the 1985 Bonds and (iii) the payment of certain costs incidental to the issuance of the 1990 Bonds. DESCRIPTION OF THE 1990 BONDS The 1990 Bonds are being issued in the form of fully registered bonds and will be initially registered to Cede & Co., as nominee of The Depository Trust Company, New York, New York ("DTC")~ which will act as securities depository for the 1990 Bonds. Individual purchases of the 1990 Bonds will be made in book-entry form only and the purchasers will not receive physical delivery of the 1990 Bonds or any certificate representing their beneficial ownership interest in the 1990 Bonds. For so long as DTC or its nominee, Cede & Co., is the registered owner of the 1990 Bonds, all references herein to the registered owners of the 1990 Bonds shall mean Cede & Co., and shall not mean the Beneficial Owner (as herein defined) of the 1990 Bonds. The 1990 Bonds will be available to the purchasers in the principal denominations described below under the book'entry system maintained by DTC through brokers and dealers who are, or who act through, DTC Participants. For so long as any purchaser is therBeneficial Owner of 1990 Bonds, he must maintain an account with a broker or dealer who is, or who acts through, a DTC Participant in order to receive payment of principal and interest on the 1990 Bonds. For so long as DTC or its nominee, Cede & Co., IS the registered owner of the 1990 Bonds, such payments of principal and interest will be made directly to Cede & Co. Disbursement of such payments of principal and interest to DTC Participants is the responsibility of DTC and disbursement of such payments to the Beneficial Owners is the responsibility of the DTC Participants and indirect participants, as more fully described under the heading "Book-Entry-Only System" herein. ~ The 1990 Bonds maturing on or before November 1, 2015~3 are Current Interest Bonds and shall be available to the purchasers thereof in denominations of $5,000 or any integral multiples thereof. The 1990 Bonds that are Current Interest Bonds shali be ~relim~nary, subjec~to c~L~ ~ 2 dated October 1, 1990, shall bear interest (payable semi-annually by check on May 1 and November 1 of each year commencing May 1, 1991) at the rates per annum set forth on the cover page hereof, computed on the basis of a 360-day year consisting of twelve thirty-day months, and shall mature on November 1, of the years set forth below: $ 30; ~ 70: ~oo Current Interest Bonds Amount Maturity Interest Rate $ The 1990 Bonds maturing on or after November 1, 2016~are Capital Appreciation Bonds and shall be available to the purchasers in amounts which on the date of delivery thereof represent $5,000 or integral multiples thereof in Accreted Amount at maturity. The 1990 B6ndS that are Capital Appreciation Bonds shall be da~ed the date of their initlaf authentication and delivery, shall bear interest from such date compounded semi-annually from the date of delivery thereof on each May 1 and November 1, commencing May 1, 1991 such that the Capital Appreciation Bonds shall appreciate to yield approximately the rates per annum set forth below (subject to th~ ~p~cificaccretion schedules for each $5,000 maturity amount described in Appendix I hereto), and shall mature on November 1 of the years set forth below: AccretedAmount at Maturity Capital Appreciation Bonds Maturityc~ Approximate Yield 2016 ~-*~ 2017 ~.~ 2018 7.~ 2019 2020 Notwithstanding any provision mo the contrary in the Resolution, the Accreted Amount of the 1990 Bonds that are Capital Appreciation Bonds shall be considered as principal for purposes of determining (i) the redemption price of such 1990 Bonds and (ii) the amount of such 1990 Bonds held at any particular time as outstanding by any owner for purposes of the Resolution. For purposes cf calculating the Accreted Amount of the 1990 Bonds that are Capital Appreciation Bonds with respect to matter~ referred to in clauses (ii or (ii) of the preceding sentences, if the date of computation of the Accreted Amount shall not be an interest payment date, the Accreted Amount shall be the sum of the Accreted Amount as of the im~ediately preceding interest payment date (or the date of original issuance if the date of computation is prior 5o May 1, 1991) plus that portion of the difference between the Accreted Amount as of the immediately preceding interest payment date (or the date of original issuance if the date of computation ms prior Preliminary, to May 1, 1991) and the Accreted Amount as of the immediately succeeding interest payment date, calculated by multiplying such difference by a fraction the numerator of which is the number of days from and including the immediately preceding interest payment date (or date of original issuance, as the case may be) to but not including the date of calculation, and the denominator of which is the number of days from and including such preceding interest payment date (or date of oriqinal issuance, as the case may be) to but not including the next s~cceeding interest payment date. For so long as DTC or its nominee Cede & Co., shall be the registere~ owner of the 1990 Bonds, ~he principal of and any premium, if any,. on the 1990 Bonds will be payable to the Beneficial Owners in the manner described under th~ heading "Book Entry-Only System" herein. If DTC or its nominee, Cede & Co., shall no longer be the registered owner of the 1990 Bonds, such principal and premium shall be payable by check or draft, upon presentation and surrender thereof at the corporate trust office of Barnett Banks Trust Company, N.A., Jacksonville, Florida, as Bond Registrar and Paying Agent, as the same shall become due and payable. Interest will be payable by draft or Check mailed on each interest payment date to the holders of the 1990 Bonds registered as such as of the fifteenth day of the month succeeding the interest payment date. Interest that is not punctually paid or provided f~r on the date due'shall be a' ' .- in "Appendix B -- ~ ............. p ~d.ln ~he manner set forth ~'~3 u~ ~er~aln Provisions of the Resolution - - Payment of Defaulted Interest,, herein. Optional Redemption REDEMPTION PROVISIONS The 1990 Bonds maturing on or before November 1, ~00 are not redeemable prior to their respective stated dates of maturity. The 1990 Bonds that are Current Interest Bonds maturing on or after November 1, ~00% are subject to redemption, at the option of the City, on or ~fter November 1, 1~, as a whole on any date or in part on any interest payment date, at the following redemption prices (expressed as percentages of the principal amount), plus accrued interest to the date o~ redemption: Redemption Period ~Dates Inclusive) Redemption Pric~ lotto The 1990 Bonds that are Capital Appreciation Bonds are subject to redemption, at the option of the City, on or after November 1,~c~C, as a whole on any date or in part on any interest payment date, at the following redemption prices (expressed as percentages of Accreted Amount as of the date of redemption): -- Redemption Period (Dates Inclusive) _ RedemDtion Pric~ No optional redemption of less an all Bonds outstanding under the Resolution is permitted, except that all Bonds of one or more Series may be redeemed from the proceeds of Refunding Bonds. At such time as all of the 1985 Bonds shall have been paid or deemed paid pursuant to the Resolution, then less th of any Series~,,~- ,. ~ an all Bonds redeemed. If les~ ~ -~ k ~ ~ ~ l~u Bonds) may be shall then be called ~ ........ Y e maturity of a Series redeemed shall be ~e~=~m~°n5 the particular Bonds to be ~=~u~u Dy ±o~ Dy ~he Director of Finance as he may, in his discretion, determine. MandatoryRedemption The 1990 that are Current Interest Term Bends maturing B°~and ~o~¢ shall have the follo ' in the years ~ u sna±± De suDject to mandatory Amortization Requirements an ..... · Wing Mandatory redemption in part, on each November 1 in the years and amounts se~ forth below, at a price eqUal to 100% of the unpaid principal amount of such Current Interest Bonds being redeemed plus accrued interest thereon to the redemption date, and withouL premium: .Year TERM BONDS Mandatory Amortization Requirement TERM BONDS Mandatory Y__ear _Amortization Requirement ['\ If, prior to any November 1, the Cit sh ~a c~n~ellat~on or redeem ?~OT~/Te ...... Y all ~urc se for · ~ e c ~ %~, o~u~s o~ _ . o ~ T rm Bonds , '~, ~ess of the aggregate~andatorv Amortl 7°=~- ' such Term Bonds o~ ~ ~ ~_ zatton Requx~nt for b~t n~ ~ ~ . Te~ Bonds, restively, to including such November 1, such excess of Term Bonds o~ ~ Te~ Bonds, respectively, so purchased ~dedme~ and not 5 previously applied as a credit shall be credited ~/er such of the remaining mandatory redemption dates for such ~ Term Bonds or ~o~ Term Bonds, respectively, as the City shall determine, and shall reduce the amount of Term Bonds otherwise subject to redemption and due, respectively, on such dates. Provided, however, that no such excess shall be credited to the amount of ~ Term Bonds or ~o~ Term Bonds subject to mandatory redemption on a particular November 1, after the selection of-ZoO~ f~ Term Bonds or ~[~ Term Bonds, respectively, to be redeemed on such date has been made. Notice of Redemption At least thirty (30) days prior to the redemption date, a notice of such redemption (i) shall be filed with Barnett Banks Trust Company, N.A., Jacksonville., Florida, the Paying Agent and Bond Registrar for the 1990 Bonds, and the finance office of the City and (ii) shall be mailed by the Bond Registrar, postage prepaid, to all registered owners of the 1990 Bonds to be redeemed at their addresses as they appear ~on the reqistration book maintained by the Bond Registrar, but a~y ~fect i~ such notice or the failure to mail any such notice to the owner of any 1990 Bond shall not affect the validity of the proceedings for such redemption of any other 1990 Bonds. Interest on any 1990 Bonds duly called for redemption will cease to accrue after the date fixed for redemption,. . provided that money for the payment of the redemption price is then held by the City in trust for such purpose~ BOOK-ENTRY-ONLY SYSTEM The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the 1990 Bonds. Upon the issuance of the 1990 Bonds, one registered 1990 Bond that is a Current Interest Bond for each maturity and one registered 1990 Bond that is a Capital Appreciation Bond for each maturity will be registered in the name of Cede & Co., as nominee for DTC. So long as Cede & Co. is the registered owner of the 1990 Bonds, references here~n to the owners of the 1990 Bonds shall mean DTC or its nominee, Cede & Co., and shall not mean the Beneficial Owners of the 1990 Bonds (as defined below). DTC is a limited-purpose trust company organized under the laws of the State of New York, a member of the Federal Reserve System, a "clearing corporation,, within the meaning of the New York Uniform Commercial Code, and a' "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934, as amended. DTC was created to hold securities of its participants (the "DTC Participants,,) and to facilitate the clearance and settlement of securities =ransac- tions amongDTC Participants in such securities through electronic book-entry changes in accounts o~f the DTC Participants, thereby eliminating the need of physical movement of securities. DTC ParticipanEs include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations, some of whom (and/or their representatives) own DTC. Access to the DTC system is also available to others such as banks, brokers, dealers and trust companies that clear through or maintain a cus- todial relationship with a DTC Participant, either directly or indirectly (the "Indirect Participants"). Purchases of beneficial interests in the 1990 Bonds under the book-entry system may be made only through brokers and dealers who are, or act through, DTC Participants. The DTC Participants purchasing the 1990 Bonds shall receive a credit balance in the records of DTC. The ownership interest of each purchaser (a "Beneficial Owner") of a beneficial interest in any 1990 Bond will be recorded in the records of the applicable DTC Participant or Indirect Participant. Beneficial Owners will receive from the applicable DTC Participants or Indirect Participant a written confirmation of their purchase providing details of the 1990 Bonds in which such beneficial interest is acquired. Transfers of ownership of beneficial interests in the 1990 Bonds will be accomplished by book entries made by the DTC Participants or Indirect Participants who-act on behalf of the Beneficial Owners and, if necessary, in turn by DTC. No 1990 Bonds will be registered in the~names of the Beneficial Owners, except in the event the use of the book-entry system is discontinued, as described below. The City will recognize DTC or its nominee as the owner of the Bonds for all purposes, including notice purposes. Conveyance of notices and other communications by DTC to DTC Participants, by DTC Participants to Indirect Participants, and by DTC Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among DTC, DTC Participants and Indirect Participants, subject to any statutory and regulatory requirements as may be in effect from time to time. Beneficial Owners may desire to make arrangements with a DTC Participant or an Indirect Participant so that all notices of redemption or other communications to DTC which affect such Beneficial Owners, and notification of all interest payments, will be forwarded to such Beneficial Owner in writing by the DTC Participant or Indirect Participant, as the case may be. Any failure of DTC to advise a DTC Participant, or failure of a DTC Participant or Indirect Participant to notify a Beneficial Owner, of any notice of redemption and its content or effect will not affect the validity of the redemption of the 1990 Bonds called for redemption or of any other action premised on such notice. Under DTC's current procedures, neither DTC nor Cede & Co. will provide any consents required to be secured from Bondholders under the Resolution. DTC will mail an omnibus proxy to the Bond Registrar as soon as possible after the record date, which wilt assign Cede & Co.'s voting rights to the DTC Participants having the 1990 Bonds credited to their accounts on the record date. PaymenLs pf principal of and interest on the 1990 Bonds will be made to DTC or its nominee, Cede & Co., as registered owner of the 1990 Bonds. Upon receipt of moneys, DTC's current practice is immediately to credit the accounts of the DTC Participants accordance with their respective holdings shown on the records of DTC. Payments by DTC Participants and Indirect Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is now the case with municipal securities held in bearer form or in "street name" for the accounts of customers, and will be the responsibility of such DTC Participant or Indirect Participant and~not of DTC, the City or the Paying Agent, subject to any statutory and regulatory requirements as may be in effect from time tc time. The city and the Bond Registrar and Paying Agent, cannot and do not give any assurances that DTC, DTC Participants, Indirect Participants or others will distribute Payments of PrincipaI of or interest on the 1990 Bonds paid to DTC ~r its nominee, as the registered owner, or any redemption or other notices, to the Beneficial Owners or that they wilt do so on a timely basis or will serve and act in a manner described in this official Statement. The City and the Bond Registrar and Paying Agent are not responsible or liable for the failure of DTC, DTC Participants or Indirect Participants to make any payment or give any notice to a Bemeficial Owner in respect of the 1990 Bonds or any error mr delay relating t~ereto. For so long as any purchaser is a Beneficial Owner of a 199~ Bond, he must maintain an account with a broker or dealer or other institution which is, or acts through, a DTC Participant in order to receive payments of principal of and interest on such 1990 Bond and notices with respect thereto. For every transfer of a beneficial interest in any 1990 Bonds, the Beneficial Owner may be charged a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto. DTC may discontinue providing its services with respect to the 1990 Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law, or the City may terminate its participation in the system of book- entry transfers through DTC at any time. If the City does not select another qualified securities depository to replace DTC (or a successor depository) in order to continue a book-entry-only system for the 1990 Bonds, the 1990 Bonds will be re-registered and fully, registered certificates, in authorized denominations, will be delivered in accordance with instructions from DTC and others. In the event that such book-entry-only system is discontinued, the following provisions will apply: principal of the 1990 Bonds will be payable when due upon presentation and surrender of 1990 Bonds at the principal corporate trust office of the Bond Registrar and Paying Agent in Jacksonville, Florida or at such other office as may be designated by the City; interest on the 1990 Bonds that are Current Interest Bonds will be payable on each May 1 and November 1 by check mailed by the Paying Agent on such dates to the persons who were the registered owners of such 1990 Bonds as of the close of business on the fifteenth (15th) day of the calendar month immediately preceding such interest payment dates (the "Record Date") at the addresses of such registered-owners-thereof as shown on the registration books of the City maintained by the Bond Registrar as of the close of business of the Bond Registrar on such Record Date; the 1990 Bonds that are Current Interest Bonds will be issued only as fully registered bonds in denominations of $5,000 or any integral multiple thereof and the 1990 Bonds that are Capital Appreciation Bonds shall be issued only as fully registered bonds in the amounts which on the date of delivery thereof represent $5,000 or integral multiples thereof in Accreted Amount at maturity; and the transfer of 1990 Bonds will be registrable and 1990 Bonds may be exchanged at the principal corporate trust office of the Bond Registrar in Jacksonville, Florida, upon the payment of any ~axes or Other governmental charges required to be paid with respect to such transfer or exchange and in accordance with the provisions of the Resolution. SOURCE OF PAYMENT AND SECURITY FOR THE 1990 BONDS Revenues of the System The payment of the principal of, premium, if any, and interest on the 1990 Bonds will be payable solely from and secured (equally and ratably with the 1985 Bonds) by a pledge of the Revenues of the System and, to the extent hereinafter described, the Impact Fees and, subject to the application thereof as provided in the Resolution, amounts in each Fund and Account established under the Resolution except for the Loan Repayment Fund and, to the extent hereinafter described, in the Impact Fee Fund. The City is obligated under the Resolution to deposit all Impact Fees into the Impact Fee Fund. Money In the Impact Fee Fund may be used by the City for certain System related purposes, but the City is obligated to make up deficiencies in the required deposits to the Bond Service Account, Mandatory Redemption ~ccount, Reserve Account or Loan Repayment Fund from any moneys which are available in the Impact Fee Fund; provided, however, that the maximum amounts that may be deposited to the credit of such AccounLs and Fund from the Impact Fee Fund in any Fiscal Year shall not exceed the Expansion Projects Percentage (as defined below) of the total Principal and Interest Requirements for such Fiscal Year. The term "Expansion Projects Percentage" is defined under the Resolution as a fruction, the numerator of which is the portion of the original principal amount of Bonds and the original principal amount of State Loans undertaken by the City allocated to Expansion Projects by certificate of the Consulting Engineers aL the time issuance of such Bonds or closing of such State Loans and the denominator of 9 which is the sum of the original principal amounts (without taking into account any repayment of principal) of all Bonds issued under the Resolution and all State Loans undertaken by the City. The numerator of the foregoing fraction is to be reduced by an amount equal to the sum in each Fiscal Year of the principal amounns of Bonds redeemed with Impac~ Fees in excess of the Mandatory Amortization Requirements and principal portions of State Loans paid with Impact Fees in advance of scheduled payment date. ALL BONDS ISSUED UNDER THE RESOLUTION DO NOT CONSTITUTE A GENERAL OBLIGATION, DEBT OR LIABILITY OF THE CITY OR THE STATE OF FLORIDA OR ANY POLITICAL SUBDIVISION, AGENCY OR INSTRUMENTALITY OF THE CITY OR THE STATE OF FLORIDA WITHIN THE MEANING OF THE FLORIDA CONSTITUTION, AND NEITHER THE FULL FAITH ANDCREDIT NOR THE TAXING POWER OF THE CITY, THE STATE OF FLORIDA, OR ANY POLITICAL SUBDIVISION THEREOF, ARE PLEDGEDOR OBLIGATED AS SECURITY FOR THE PAYMENT OF THE PRINCIPAL OF OR INTEREST ON ANY BONDS. THE BONDS ARE LIMITED OBLIGATIONS OF ~ME CITY AND THE HOLDERS OF THE BONDS SHALL HAVE NO RIGHT TO REQUIRE THE IMPOSITION OF ANY TAX OR THE ESTABLISHMENT OF ANY RATE OF TAXATION FOR THE PAYMENT OF THE PRINCIPAL OF OR INTEREST ON ANY BONDS. Rate Covenant The city has covenanted under the Resolution to fix, establish, revise from time to time whenever necessary, maintain and collect always such rates and charges for the use of the services and facilities of the System which will always provide (a) Revenues sufficient in each Fiscal Year to provide an amount equal to the sum of 100% of Current Expenses of the System for such Fiscal Year, plus 125% of the Principal and Interest Requirements for the current ~Fiscal Year, plus 100% of the Reserve Accounn Deposit Requirement for such Fiscal Year, plus 100% of the amount required to be deposited in the Renewal and Replacement Fund for such Fiscal Year~ 'and (b) Revenues exclusive of income from the investment of moneys made under the Resolution, at least equal to 115% of the Principal and Interest Requirements for the current Fiscal Year. The City has further covenanted under the Resolution and agrees that if in any Fiscal Year the Revenues are insufficient to provide the amounts described in clauses (a) and (b) of the preceding paragraph, it will revise the rates and charges for the services and facilities furnished by the System (hereinafter referred to as the "Rates and Charges") and, if necessary, revise its regulations for the collection of bills for such services and facilities so that the Rates and Charges collected in the current and each subsequent Fiscal Year will result in Revenues sufficient to provide such amount. ~In addition, the City will, before the first day of November of the following Fiscal Year, request the Consulting Engineers or the Utility Rate Consultant ~o make their recommendations as to a revision of the Rates and Charges and copies of such request and recommendations will be filed with the City Manager. Should the City fail to adjust its Rates and Charges in accordance with the foregoing requirements of the Resolution, 10 the owners of not less than 10% of the principal amount of all Bonds then outstanding may institute an appropriate suit to compel the City to adjust its Rates and Charges to provide the amounts ~described in clauses (a) and (b) of the preceding paragraph. Reserve Account The Resolution provides for the establishment and maintenance of a Reserve Account in an amount equal to the Reserve Account Requirement as to each series for the benefit of the holders of the Bonds outstanding. The Reserve Account Requirement is an amount of money, securities~or Reserve Fund Insurance Policy not less than the maximum Principal and Interest Requirements for any Bond Year, but in no event (except in the case of Bonds constituting Balloon indebtedness or VarLable Rate Indebtedness) shall the amount so fixed be less than, as of any date of calculation, an amount equal to the Principal in the next succeeding Bond Year for which there is a ~ Requirement, on account of all Bonds outstanding, as all Of the 1985 Bonds are paid or deemed paid pursuant to the Resolution, the Reserve Account Requirement shall be an amount of money, securities or Reserve Account Insurance Policy~not less than the lesser of (i) the maximum Principal and Interest Requirements for the then current or any succeeding Bond Year, or (ii) 125% of the average annu~lPrincipaland Interest Re~rements for all Bonds calculated On a Bond Year basis for each Series as of the date of issuance of such Series, or (iii) the sum of 10% of the proceeds of each Series. The Reserve Account Re~q~irement for Bonds constituting Balloon indebtedness and for Bon~s constituting Variable Rate Indebtedness shall be Calculated in the manner provided in the Resolution. The Reserve AccountRequirement with respect to the 1990 Bonds will be provided for from a portion of the proceeds of the 1990 Bonds in the amount of $~~ ~;.~-~-~ Municipal Bond Insurance The City has received a commitment from AMBAC Indemnity Corporation ("AMBAC Indemnity") for a policy of municipal bond insurance (the "Insurance Policy") to insure the payment when due of the principal of and interest on the 1990 Bonds effective as of the date of issuance of the 1990 Bonds. Under the terms of the Insurance Policy, AMBAC Indemnity will pay to the United States Trust Company of New York, in New York, New York or any successor thereto (the "Insurance Trustee") that portion of the principal of and interest on the 1990 Bonds which shall become Due for Payment (as defined in the Insurance Policy) but s~all be unpaid by reason of Nonpayment (as defined in the Insurance Policy) by the City. AMBAC Indemnity will make such payments to the Insurance Trustee on the later of the ~ate on which such principal and interest becomes Due for Payment or the fifth (5th) day next following the date on which AMBAC Indemnity shall have received notice of Nonpayment from the Paying Agent. The insurance will extend for the term of the 1990 Bonds and, once issued, cannot be cancelled by AMBAC Indemnity. 11 ENTERPRISE ?gNDS The enterprise funds report operations that provide services which are financed primarily by user charges, or activities where periodic measurement of net income is appropriate for capital maintenance, puhllcpolicy, management control or other purposes. Water and Sewer Fund--This fund is used to account for the construction, operation and maintenance of the Water Department and the City's share of the Regional Wastewater Treat- ment Plant. Boynton Beach Recreational Facilities Fund-- This fU~d is used to tion, operation and cipal golf course. account for the construc- maintenance of the muni- Sanitation Fund--This fund is for the municipal sanitation disposal services. used to account collection and 69- COMBINING BALANCE SHEET--E~TERPRISE FUNDS CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 ASSETS Current asse~s Cash (overdraft) Equity in pooled cash and investments Accounts and notes receivable, net Due from fiscal agent Due from other funds Prepaid expenses Inventories TOTAL CURRENT ASSETS Water and Sewer Fund Boynton Beach Recreational Facilities Fund Sanitation Fund Total $( 102) 26,973,316 1,060,871 303,360 2,900 28,340,345 102) 271,883 167,979 27,413,178 1,243 16,354 2,077 55,017 346,574 532,218 1,594,332 16,354 303,360 4,977 55,017 700,197 29,387,116 Restricted asgets Bond requirements Capital improvements Customer deposits Renewal and replacement TOTAL RESTRICTED ASSETS 3,444,166 770,379 804,077 1,153,267 2,846,838 100,000 8,248,348 870,379 4,214,545 804,077 1,153,267 2,946,838 9,118,727 Other assets Deferred charges Investment in Regional Wastewater Treatment TOTAL OTHER ASSETS 333,193 91,130 10,931,865 11,265,058 92,130 424,323 10,931,865 I1,356,18~ Property, plant and equipment Less allowances for de~recianion TOTAL ASSETS 74,561,876 3,759,253 246,388 78,567,517 18,285,566 1,069,~36 166,498 19,522,00f 56,276,310 2~689,3t7 79,890 59,045,517 $ 104.13/Lgltl ~3,997 4~0Q ~087 $ t0~,907,~ -70- IABILITIES AND FUND EQUITY Current liabilities (payable from current assets) Accounts payable Aacrued payroll Refundable deposits Revenue collected in Contracts payable Currenu liabilities (payable from restricted assets) Accrued revenue bond interest Current portion of revenue bonds payable Contracts payable ~_~Cnstomer deposits Other liabilities Compensated absences payable Accrued capital appreciation bond interest Revenue bonds payable, less curren~ portion Unamortized bond discount TOTAL LIABILITIES Fund equity (deficit) Contributed capital Retained earnings '~ Reserved for Revenue bond debt service Capital improvements Renewal and reptacemenn Unreserved (deficit) TOTAL FUND EQUITY (DEFICIT) TOTAL LIABILITIES AND FUND EQUITY Water and Sawer Fund Boynton Beach Recreational FacilRties Sanitation Fund Fund Total 871,382 $ 16,614 $ 212,853 $ 1,100,849 19,850 4,011 8,160 32,021 340,278 340,278 1,229 1,229 399,505 399,505 1,231,510 21,854 620,518 1,873,882 515,550 149,428 664,978 875,000 130~000 1,005,000 716,907 716,907 1,153,267 1,153,267 3,260,724 279,428 3,540,152 363,696 60,683 239,471 663,850 891,437 891,437 17,277,814 3,640,000 20,917,814 365,264) ( 71,766) ( 437,030) 18,167,683 3,628,917 239,471 22,036,071 22,659,917 3,930,199 859,989 27,450,105 53,446,774 ~53,446,774 2,053,616 490,951 2,544,567 87,t70 87,170 2,846,838 100,000 2,946,838 23,035,746 ~ 523~750) ~ 79,902] 22~432=094 28,023,370 67~201 · 7~,902) 28,0t0,669 81,470,144 671201 ~ 79,902) 8t~457,443 -71- COMBINING STATEM]~NT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS (DEFICIT)--ENTERPRISE FUNDS CITY OF BOYNTON BEACH, FLORIDA Year Ended September 30, 1989 Operating revenue Charges for services Water sales Service charges Water connection charges Sewer service Garbage fees Dues Cart and green fees Rents and royalties Sale of merchandise Intergovenmental TOTAL OPERATING REVENUE Operating expenses Amortization Depreciation Depreciation on Regional Wastewater Treatment Plant OPERATING INCOME (LOSS) Nonoperating revenue (expenses) Interest income Miscellaneous income Interest expense Fiscal agent's fees INCOME (LOSS) BEFORE OPERATING TRANSFERS Operating transfers in (out) Operating transfers in Operating transfers out NET INCOME (LOSS) Transfer of depreciation on contributed capital Retained earnings Zdeficit), October 1, 1988 RETAIh~D EARNINGS (DEFICIT), SEPTEMBER 30, 1989 Boynton Beach Recreational Water and Facilities Sanitation Sewer Fund Fund Fund Total 5,529,194 67,401 233,780 5,569,551 490,961 1,049,166 24,903 130,161 4,639,792 18,750~ 11,399,926 1,695,191 4,658,542 5,529,194 67,401 233,780 5,569,551 4,639,792 490,961 1,049,166 24,903 130,161 18,750 17,753,659 6,452,993 1,009,078 4,835,338 12,297,409 47,318 1t,416 58,734 1,975,609 215,421 32,307 2,223,337 523,873 523,873 8.999,793 1,235,915 4,867,645 15.103.353 2,400,133 459,276 ( 209~103) 2,650,306 3,063,457 82,044 78,616 3,224,117 97,813 82,265 9,674 189,752 ( 1,502,621) ( 359,379) ( 1,862,000) ( 4,972) ( 882) ( 5,854) 1,653,677 ( 195,952) 88,290 1,546,015 4,053,810 263,324 ( 120,813) 4,196,321 201,108 1,434,656)_( 28,908) 1,233,548) ( 28,908) 2,820,262 234,416 4,000 105,108 719,486) ( 2,083,050) 715,486) ( 1,977,942) 836,299) 2,218,379 1,061,432 1,061,432 24,141,676 ( 167,215) 756~397 24,730,858 ~ 28~Q~ ~ ~f 79.902)~ 28.010.66~ -72- COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION-- ENTERPRISE FUNDS CIT~Y~OF BOYNTON BEACH, FLORIDA Ye~ Ended September 30. 1989 SOURCE OF FUNDS Net income (loss) Expenses not requiring current outlay of working capital Depreciation Accretion of discount on capital appreciation bonds Amortization of debt issue expenses and bond discount WORKING CAPITAL PROVIDED BY (USED IN) OPERATIONS ~-~trtbuted capitai rease in compensated ~bsences payable Increase in current liabili- ties payable from restricted assets Book value of assets disposed of APPLICATIO~ OF FUNDS Increase in investment in Regional Wastewater Treat- ment Plant Increase in property, plant and equipment Decrease in compensated absences payable Increase in restricted assets Decrease in long-term debt INCREASE (DECREASE) IN WORKING CAPITAL Jot hued on nexn page. Boynton Beach Recreational Water and Facilities Sanitation Sewer Fund Fund Fund Total 2,820,262 $ 234,416 $( 836,299)$ 2,218,379 2,499~482 215,421 32,307 2,747,210 261,226 261,226 47,318 11,416 58,734 5,628,288 461,253 ( 803,992) 5,285,549 5,494~01] 5,494,011 17,259 27,725 ~A,984 564,899 6,252 571,151 t32 132 11,687,198 484,764 (776,135) 11,395,827 514,124 514,124 8,419,669 191,292 29,781 8,640,742 49,107 a9,107 584,948 6,253 591,201 875,000 t30,000 1,005,000 10,442,848 327,545 29,781 10,800,17~ -73- SCHEDULE OF CKANGES IN PROPERTY, EQU[FF~ENT--ENTERPRtSE FUNDS CITY OF BOY~70N BEACH. FLORIDA Year Ended SepTember 30, 1989 Water and Sewer Fund Water department Land Buildings Lines Equipment Wells Construction in progress Sewer department Land Lines Equipment Construction in progress General Equipment Boynton Beach Recreational Facilities Fund Golf course Land Buildings Improvements Equipment Sanitation Fund Equipment Cost Balance, Balance, October 1, Deductions/ September 30 1988 Additions Transfers 1989 65,696 ~ ~ $ 65,696 6,606,676 6,606,676 18,692,938 2,263,834 20,956,772 2,831,578 521,945 3,353,523 2,183,097 804,794 2,987,891 2,277,231 4,138,00t 1,385,186 5,030,046 32,657,216 7,728,574 1,385,186 39,000,604 139,137 139,137 23,808,199 1,568,181 25,376,380 9,317,082 234,376 9,551,458 123,006 445,327 171,604 396,729 33,387,424 2,247,884 171,604 35,463,704 97,568 97,568 66,142,208 9,976,458 1,556,790 74,561,876 1,356,467 1,356,467 547,166 547,16f 1,069,212 31,227 1,100,439 592,292 174,566 11,677 755,18! 3,565,137 205,793 11,677 3,759,25[ 218,598 29,781 1,991 246,385 69.925.94t $ 10.2~ $ 1~70,45~ $ 78.567.5_~ -76- October 1, 1988 Accumulated Depreciation Additions Deductions September 30, Net 1989 Book Value 1,758,114 190,223 2,767,888 378,401 1,788,789 164,793 847,435 143,915 7,162,226 877,332 $ 65,696 1,948,337 4,658,339 3,146,289 17,810,483 1,953,582 1,399,941 991,350 1,996,541 5,030,046 8,039,558 30,961,046 4,111,938 478,778 4,976,957 611,328 139,137 4,590,716 20,785,664 5,588,285 3,963,173 396,729 9,088,895 1,090,106 10,179,001 25,284,703 58,836 8,171 i6,309,957 1,975,609 67,007 30,561 18,285,566 56,276,310 1,356,467 59,214 13,679 72,893 474,273 422,154 85,660 507,814 592,625 370,324 130,582 11,677 489,229 265,952 851,692 229,921 11,677 1,069,936 2,689,317 136,050 32,307 1,859 t66,498 79~890 17.297,699 $ 2.237,8~7 $ 13,J~i6 ~ 19.522.00 $~,04~517 -77- SCHEEULE OF REVENUE BONDS AND ACCRUED I~TEREST PAYABLE--ENTERPRISE FUNDS CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 Water and Sewer Fund Water and Sewer Revenue Bond Issue of 1985 Boynton Beach Recreational Facilities Fund Recreational Facilities Revenue Bond Issue of 1982 TOTAL REVENUE BONDS AND ACCRUED INTEREST PAYABLE Unmatured Debt,. September 30, 1989 Due Within Due After Total One Year One Year ~ 18,152,814 $ 875,000 $ 17,277,814 Accrued Interest Payable, September 3 1989 515,550 3,770,000 130,000 3.640.000 149.428 ~ $ 1.005.000 $ zo.91v.sl4 664,978 -78- APPENDIX D ENGINEER'S STATEMENT ON CAPITAL IMPROVEMENTS AND ADDITIONAL BONDS TEST ENGINEER'S STATEMENT ON CAPITAL IMPROVEMENTS AND ADDITIONAl, BONDS TEST 1990 SERIES BONDS Prepared for CITY OF BOYNTON BEACH, FLORIDA Prepared by CH2M HILL, Inc. October 2. [990 INTRODUCTION PURPOSE AND SCOPE The purposeof this Engineer's Statement is to provide a summary of the City of .Boynton Beach's water and wastewater systems, their operation, and proposed improvements to the systems in support of the City's Water and Sewer Utility Revenue Bonds, Series 1990 (1990 Series Bonds). Proceeds of the 1990 Series Bonds will be used to finance new facilities and improvements to existing facilities. Specifically, these bonds wilI be used to fund: Replacement of softening basin internal mechanisms and installation of a data acquisition and control system at the existing East Water Treatment Plant (WTP). Construction of a new 4-million,gallon-per-day [mgd) West WTP, expandable to 16 mgd, along with a companion data acquisition and control system in the western portion of the City's water service area. Installation of pumps, connective piping, and controls for four new wells to supply raw water for the new West WTP. Construction of finished water matns for connecting the new West WTP to the water distribution system and for increasing and improving hydraulic capacity of certain segments of the water distribution system. Installation of replacement pumps at four existing wastewater pumping stations Rehabilitation of master wastewater pumping stations to repair the effects of corrosion. Expansion of the City's existing radio telemetry system for monitoring and controlling all wastewater pumping stations. These capital improvemems, referred to collectively as "the Project," make up a portion of the util/ty's proposed Capital Improvements Program (CIP) that is pre- sented in the "Capital Improvements" section below. Other capital Improvements not included in the Project will be made. but will be financed from net revenues and impact fees rather than from proceeds of the 1990 Series Bonds. dbp019\049.51 1 This Engineer's Statement describes the general nature and purpose of the ProJect and related capital Improvements that will be funded from sources other tha'n proceeds of the 1990 Series Bonds. the need for capital funds, and the uses of those funds. This statement also includes a financial analvsis to determine satisfaction of two Additional Bonds Tests required under conditk~ns of the Series 1985 Bond Resolution for the issuance of parity bonds. Conclusions drawn from all evaluations are presented at the end of the statement. METHODOLOGY In preparing this statement, CH2M HILL has employed techniques and practices consismm with standard engineering practice. Evaluation of the existing systems and estimation~of system demands and conclusions regarding needed capital improve- ments are based primarily on information presented in the City's Water a~wl Wastewater Master Plan (1989) prepared by CH2M HILL. This information has been supplemented by Utilities Department operating records, historical operating costs and revenues provided by the City Finance Department, interviews with Utilities Department staff, the Water and Sewer Utility Operatian and Mab~tenance Annual Report for Fiscal Year 1988 prepared by CH2M HILL, and Aquifer Storage Recovery--,4 Prelirnb~ary Feasibility Stud, v for Boynton Beactk Florida prepared by CH2M HILL in April 1990. ' CONSULTING ENGINEER CH2M HILL is a consulting firm of engineers, planners, economists, and scientists p. roviding planning, engineering, design, construction, startup, and operation services since 1946. The firm is one of the nation's largest consultants in the areas of water and wastewater engineering. On June 7. 1988, the City of Boynton Beach selected and contracted with CH2M HILL to provide general consulting and engineering smMces in support of the City's Utilities Department. Some of the services provided to the Utilities Department to date have included preparation of a water and wastewater master plan and utilities element of the comprehensive plan. design of improvements to the East Well Field. pilot testing of disinfectant alternatives at the existing East WTP, design of improvements to fuel and chemical containment facili- ties at the existing East WTP, assistance with obtaining a zoning variance for the new West WTP, complete design sen4ces for the new West WTP, design of improvements to and expansior~ of the existing East WTP. evaluation of the feasibility of aquifer storage and recovery, design of four wastewater pumping stations, and miscellaneous related 'services. dbp019\049.51 2 THE WATER ATE. UT3I-LITY The City of Boynton Beach. Florida, provides water and wastewater services to a geographic area within l~alm Beach County about twice the size of the City itself. The water system includes facihties for raw water supply, water treatment, and dis- tribution and serves the City of Boynton Beach. the Town of Ocean Ridge. the Town of Briny Breezes, part of the City.of Hypoluxo. and several unincorporated areas. Wastewater services include collection and transmission and are provided to the City of Boynton Beach. the Town of Briny Breezes, the Village of Golf, a poruon of the City of Hypolux0, and an unincorporated section of Palm Beach County. Through an int~rlocal ~greement with the Cit~ of Delray Beach. wastewater treatment is provided for the servi~e area. at the South Central Regional Wastewater Treatment Facility located in Delray Beach. SERVICE AREA POPULATION In 1988. the resident population was approximately 68.000 in the area served by the water system and in the area served by the wastewater system; the 1988 peak seasonal population for both service areas was estimated to be in the range of 78.000 to 79,000.' The estimated seasonal population for the year 2000 is approximately i171000 for the service areas. By the time the service areas achieve buildout, the population is expected to reach approximately 142,000. WATER SYSTEM SERVICE AREA The service area for the Boynton Beach water system is illustrated in Figure 1 and includes the City of Boynton Beach, the Town of Ocean Ridge, the Town of Briny Breezes, part of the City of Hypoluxo, and areas in unincorporated Palm Beach County. The Village of Golf operates its own water system and. despite some water quality problems experienced over the last 2 years, has stated that it intends to remain independent of the City's system. WASTEWATER SYSTEM SERVICE AREA Figure 2 illustrates the area served by the City's wastewater collection and transmission system, which includes the City, the Town of Briny Breezes. the Village of Golf. a portion of the City of Hypoluxo. and a section of unincorporated Palm Beach County. The Town of Ocean Ridge. which is geographically within the City's service area, has no sanitary sewers. It relies on a combination of septic tanks and small neighborhood package plants for wastewater treatment. As mentioned earlier. dbp019\049.51 3 wasmwater treatment for the service area is provided at the South Central Regional Wastewater Treatment Facility through an interlocal agreement between the Cities of Delray Beach and Boymon Beach. SERVICE AREA EXTENSION The City of Boymon Beach may extend its boundaries in the future through annexation of unincorporated areas of Palm Beach County, which primarily lie to the west of existing city limits. Current city policy is to limit annexation westward to areas east of Lawrence Road. Because all of the areas that may be annexed are already encompassed by the water and wastewater service areas and connected to the utility systems, annexation is not expected to have an effect on utility service demands. ADMINISTRATION The City's Utilities Department reports from the Utilities Director ~o the City Manager. who is directly responsible to the City Commission, an elecmd body. personnel in the department include the following: Key Utilities Director, John A. Guidry Utility Engineer. Joseph Swan, P.E. Assistant Utility Engineer, Michael Kazunas. P.E. Deputy Utilities Director--Wastewater Division, Mark G. Law Deputy Utilities Director--Water Division, Robert L. Kenyon Assistant to the Director, Peter Mazzella The Utilities Department is divided administratively into nine divisions, consisting of an administrative division and eight operating divisions. Total staff for the Utilities Department was 96 as of June I990 and includes 2 professional engineers. 15 certified plant operators, 6 certified system operators, and 13 certified technicians. A more detailed breakdown of the staffing of the Utilities Department is presented in Table 1. This staff is responsible for the operation and maintenance of the water supply, treatment, distribution, and storage facilities, and the wastewater collection, pumping, and transmission. Wastewater treatment facilities are operated and maintained under the South Central Regional Wastewater Treatment and Disposal Board. Engineering for all major projects is provided bv outside consulting engineering firms who coordinate with staff management and engineers. As a means of maintaining employee satisfaction and good service and utility pertk~rmance, quality circles have been instituted within the last year. Eight such groups are currently functioning. The Utilities Department also supports an ongoing ~ dbp019\049.51 6 Table UTILi'I'tleXS DEPARTMENT STAFF Certified Certified Certified Total Certified Water Plant System Wastewater Division staff Techniciansa Operators Operator Plant Operator A B C A ! B C A B C Administration 15 1 1 Water Dism*bution & 19 3 Service Construction i 2 1 Sewage Collection I 13 3 Meter Reading 8 Water Treatment 15 5 2 3 1 Plant Water Plant Supply 5 1 1 & Mechanics Utility Mechanics 8 4 1 Utility Pumping 11 1 5 I Stations & Mechanics Total 96 13 6 2 4 1 5 3 aCertified field and FCC technicians and welders, and licensed electricians dbpO19/055.51 safety training program for its staff. The existing Utilities Department management and staff have experience and qualifications suitable for their responsibilities within the water and wastewater systems. Staffing levels are sufficient to effectively continue system operation and maintenance. Additional staff will be required to maintain pace w/th system growth and_ the addition of the new West WTP. Billing for services provided by the Utilities Department is produced monthly, with water and wastewater charges presented on the same bill. Nonpayment is enforced for both water and wastewater accounts by discontinuance of water service. Sewer connection fees and service charges for new construction are begun when a certificate of occupancy is issued. Water and sewer impaCt fees are collected when a building permit is issued within the city limits; when a permit is issued outside the city limits, impact fees are collected upon initiation of water service. ~L., dbp019\049.51 8 POTABLE WATER SUPPLY SYSTEM Potable water supply for the City of Boynton Beach includes facilities for raw groundwater withdrawal: treatment: transmission, storage, and distribution: administration: and operations. In this section and the "Wastewater Svstem" secnon. reference is made to capital improvements that are included within the Project. as well as those that will bE ~arrie~l out with fUnds other than'the proceeds of the' 1990 Series Bonds. Tables 4 and 5, presented in the "Capital Improvements" section, illustrate the complete Capital Improvement Plan (CIP) for the City and distinguish those facilities to be funded by Ihe 1990 Series Bonds, WATER DEMAND In the City's Water and Wastewater Master Plan (1989), peak day demand projections for 1989 were estimated to reach approximately 17.5 million gallons per day (mgd). The current permitted capacity of the existing WTP, 17.5 mgd, is beyond the capacity of the existing water supply source. However, because of drought conditions and water use restrictions imposed by the South Florida Water Management District, maximum day demand in 1989 reached only 14.5 mgd. It is anticipated that with the lifting of drought-imposed restrictions, the recent downturn in demand patterns will reverse and more closely approximate the projected levels of the Master Plan. Recently, the City has adopted an inverted rate structure as part of planned rate increases. This type of rate structure can affect demand. The degree of demand reduction is difficult to accurately predict; therefore, demand patterns should be reviewed semi-annually to determine if there is any measurable impact from the rates. Table 2 contains historical water production and projected water demands for the City's water service area exclusive of possible drought or rate impacts and shows that projected peak day demands for the year 1995 and buildout are 24 and 36 mgd, respectively. ~_ dbp019\049.51 9 Table 2 HISTORICAL AND PROJECTED WATER DEMANDS Average Daily Flow Maximum Daily Flow Year (mgd) (mgd) 1983 7.1 10.5 1984 7.8 11.5 1985 8.6 11.9 1986 8.8 12.9 1987 10.2 15.5 1988 10.7 15.6b 1989. 11.4 14.5b 19902 10.2 12.8~ 1995 16 24 2000 18 27 Build0ut 24 36 ~Period from January 1990 to July 1990 bWTP discharge pressure was temporarily lowered during peak demand period for water conservation. mgd = million gallons per day RAW WATER SUPPLY East Well Field Raw water supply for the City's potable water system is groundwater drawn from the surficial aquifer. The East Well Field. which comprises 20 active wells in four separate well fields, supplies raw water to the City's East WTP. Recent data from the City indicated a production loss in Well Field 5. The City is rehabilitating these wells to recover capacity under the direction of Geraghty and Miller, [nc.. consulting engineers, in 1989, the City completed construction to provide additional East Well Field capacity, including replacement of five wells with higher-yielding wells. The maximum pumping capacity of the existing wells has been estimated by the City ar approximately 18 mgd. However. because the peak day water demand is projected to be 20.5 mgd in 199L the lost flow in Well Field 5 must be recovered and additional supply must be obtained te avoid a supply shortfall. Two new wells, originally planned for 1990-1991. were esumated to sufficiently raise the well field production capacity ro meet demands until the new West Well Field dbp019\049.51 10 and West WTP are in production. However. siting of these wells may be difficult in the developed east side of Boynton Beach. For this reason, and because of other benefits, aquifer storage and recovery (ASR) of treated water is planned by the City as a potent/al alternative to drilling additional shallow aquifer wells. Consultant selection began in August 1990 for drilling and developmem of ASR wells and inJec- tion/recovery cycle testing. The ASR wells are planned to be located on the East WTP site and are estimated to provide an additional 2 to 3 mgd of peak day capacity. The ASR technology can maximize use of the total existing plant capacity on a year- round basis, enhance water quality, and augment available shallow aquifer well flows under drought conditions. Completion of ASR and shallow aquifer recharge facilities is planned to be funded by sources of revenue other than the proceeds from the 1990 Series Bonds, and is scheduled to be operational in 1991. ASR wells can be supple- mented as necessary with a Floridan aquifer blending well. additional surficial aquifer wells, or with recharge wells for retarding saltwater intrusion in existing production wells to help meet raw water demands. West Well Field The City has begun developing the West Well Field by successfully drilling 10 production wells with funds from sources other than proceeds of the 1990 Series Bonds. The surficiat aquifer is the water source for these wells, which will supply raw water to the proposed West WTP, a membrane softening plant that is scheduled to provide an initial treatment capacity of 4 mgd by June 1992. Four of the wells drilled at the West Well Field are expected to have a rated capacity, with full redundant capacity for downtime and rotation, that will be sufficient to supply the 4-mgd first phase of the West WTP. As part of the Project. these four wells will be completed with pumps, wellhead piping, and controls. In combination with the anticipated uprated production from the East Welt Field. the City's raw water supply is estimated to be suffic/ent to meet projected demands through 1994. As the West WTP is expanded beyond initial capacity to 8 mgd by the year 2000 and to an ultimate design capacity of 16 mgd by buildout, the remainder of the newly drilled wells in the West Well Field will be fully developed and ultimately augmented by supply from the proposed Nickles Road Well Field. WATER TREATMENT East Water Treatment Plant The existing East WTP has a permitted capacity of 17.5 mgd and uses lime softening, filtration, and chlorination to produce a finished water that complies with all current state primary and secondary drinking water standards. However. anticipated regula- tions that will be promulgated in response to the 1986 Safe Drinking Water Act ~- dbp019\049.51 11 (SDWA) Amendments are likely to restrict the current use of chlorine combined with ammonia for primary disinfection. To prepare for the new regulations, the City has conducted test programs to investigate two alternative disinfectants: chlorine c~ioxide and ozone. Although the schedule for future disinfection and disinfection byproduct regulations is not firm. the preliminary timetable is estimated to require an alternative system to be online by the first quarter of 1994. However, the trend with new regula- tions being promulgated under the SDWA has been for timetables to be extended as the U.S. Environmental Protection Agency (EPA) develops regulatory approaches and receives public input. There is also uncertainty with re~ard to the actual impacts on the City's existing treatment processes and the technolo~es that will be required to meet the regulations. Given the uncertainty about the timetable and the nature of the improvements, the City has decided to finance these facilities with funds other than the proceeds of the 1990 Series Bonds. In the City's Waterand Wastewa~er Master Plan (1989), the water system demands for 1991 were estimated at 20.5 mgd. Improvements financed with funds other than the 1990 Series Bonds are underway to bring the East WTP to 20.5 mgd capacity to meet that expected demand. Construction began in July 1990 on modifications to the plant consisting of piping modifications, filter renovation, a new chlorine storage and handling facility, and other renovations and improvements. These improvements are planned to allow the East WTP to operate at a treatment capacity of 20.5 mgd by mid-1991. A data acquisition and control system, which is included within the Project. will link the East WTP to the new West WTP plant to be constructed an the west side of the City. Another part of the Project is the replacement, as needed, of the internal mechanisms of the three existing softening basins to allow more reliable plant operation ar higher flows. The City proposes to purchase 5 acres south of the East WTP to be available for new facilities that may be needed to meet future drinking water regulations. Some of this land will serve as a plant site buffer area for neighboring residents. TYfi~ land purchase will be funded from sources other than proceeds of the 1990 Series Bonds. West Water Treatment Plant The City has approved the plan to construct a membrane softening WTP at a City- owned site on Boynton Beach Boulevard west of Military Trail in the western pa~ of the service area. Engineering design of these improvements will be complete by October 1990. An ultimate capacity of 16 mgd is planned to supply the portion of the 36-mgd buildout demand not met by the East WTP (being uprated to 20.5 mgd). Construction of the first 8 mgd of capacity, which should be sufficient to meet demands through the year 2000, is planned in four phases. The initial 4-mgd plant Ithree 1.33-mgd process trains) is scheduled to be put into service in 1992 and includes pretreatmem membrane softening, product water degassification and odor dbpOl~049.51 12 control facilities. 3 million gallons (mgj of finished water ground storage, chemical storage and containment, standby emergency power for the plant and the well field. high service pumping, a plant operations and laboratm3~ facility, a deep injection welt for membrane reject water disposal and an emergency reject water disposal system to the sanitary sewer. This initial 4-mgd phase will be funded through proceeds from the 1990 Series Bonds. Additional membrane softening trains and associated equipment will be constructed in 1.33-mgd increments as needed to meet future demands. A data acquisition and control system wit] also be implemented as part of the Project to link together the controls and operating data bases of the East WTP and W. est WTP. To help reduce construction costs, the City commissioned a value engineering study of the West WTP. Results of that study showed some reduction ~n capital cost may be achievable. The construction documents are undergoing final revisions incorporating certain value engineering recommendations. The actual value of final savings will be seen in the prices received at time of bidding. Water Distribution and Storage A computerized hydraulic model was used to evaluate the existing distribution system m all major sections of the service area for the estimated 1988 peak hour demand of approximately 27 mgd. With the completion in 1989 of the 3-mg storage tank/booster pump station near the L-20 Canal. existing distribution facilities are estimated to be adequate until the first phase of the West WTP is placed in service. The water distribution main linking the West WTP to the existing distribution system will be needed by 1992 and is included in the Project. Other future system improve- ments through the year 2000 include construction of mains needed for distribution system reinforcement and looping, development, extensions to areas currently served by private wells; replacement of old small-diameter piping; and modifications to booster pump stations. Approximately 24.000 hneal feet of distribution reinforcemem and looping, with pipes ranging in diameter from 8 inches to 16 inches, is included in the Project for completion by the end of F/scal Year 1993. Other such reinforcement and looping will be required to be completed in 1994 and 1995 and will be financed outside the proceeds from the 1990 Series Bonds. The cost of mains needed to supply new development will be borne by the developers. With the add/tion of the 3-MG storage tank in 1989, useful water storage capacity is 5.5 rog, which will be sufficient to accommodate the projected buildout storage needs of 5 rog. However. new storage facilities will be required for the West WTP to meet regulatory guidelines of the Florida Department of Environmental Regulation (FDER/. A 3.0-rog storage tank is included [n the Project as part of the first phase of the West WTP. construction, with an additional 1.0 mg planned after the year 2000. Additional storage is not planned for the East WTP, which is served by a 1.6-mg clearwell and a 500,000-gallon elevated storage tank. dbpOt9\049.51 13 .... WASTEWATER SYSTEM WASTEWATER FLOWS Table 3 summarizes historic and projected wastewater flows for the City's wasrewater system. Current flows are approximately 7 mgd on an annual average day basis and 8 mgd on a maximum month average day basis. By the year 2000. these flows are expected to be 11 mgd and 13 mgd, respectively. Buildout flows are projected to increase approximately 35 percent over year 2000 conditions. WASTEWATER COLLECTION AND TRANSMISSION The existing wastewater collection and transmission system consists of approximately 175 miles of gravity sewer, 45 miles of force main, and 128 pump stations. Pipe sizes vary from 8 inches to 24 inches in diameter. The predominant pipe materials are vitrified clay for gravity sewers and ductile iron for force mains. Older manholes are of brick construction: however, recent construction projects have used precast concrete manholes. Computer hydraulic modelling of the force main system conducted in 1988 indicated that force mains are adequately sized for future flows. Some pump modifications may be required by the year 2000 to meet projected peak hour flow requirements. Other identified short-term needs include rehabilitation at some of the master pump stations and an improved telemetry system. By the year 2000, new transmission mains, lift station improvements, and further rehabilitation of control systems will be required. Improvements to be funded by the proceeds from the 1990 Series Bonds include immediate replacement of pumps at four pump stations to improve operating condi- tions: rehabilitation of coatings, concrete, and surfaces at seven master pump stations: and completion of wastewater transmission system telemetry, to all pump stauons to improve system operation and control. Other improvements listed in the "Capital Improvements" section of this statement will be funded by sources of revenue other than the proceeds from the 1990 Series Bonds. With the completion of all of these improvements, it is estimated that the wastewater transmission sys~/em will provide capacity adequate to meet projected demands through Fiscal Year 1995. '- ' dbp019\049.51 14 Table 3 HISTORICAL AND PROJECTED WASTEWATER FLOWS Average Daily Flow Max/mum Month Flow Year (mgd) (mgd) 1986 5.24 6.34 1987 6.08 6.62 1988 6.37 6.89 1989 6.90 8.00 1990 7.40 8.60 1995 10 12 2000 11 13 Buildout 15 17 WASTEWATER TREATMENT Wastewamr treatment and disposal for the service area is administered by the South Central Regional Wastewater Treatment and Disposal Board through an interlocal agreement between the Cities of Delray Beach and Boynton Beach, which are the sole users of the facility. The Board was created in 1974 to provide wastewater trearment, sludge disposal, and effluent disposal services jointly to the two cities. The Board is composed of the five commissioners from each City, who operate the treatment plant through an executive director. The Soutk Central Region Wastewater Treatment Facility has a current rated treatmem capacity of 24.0 mgd (annual average day basis). Total plant capacity is limited by effluent pumping capacity which is rated at 18.1 mgd. Plant capaci .ty is allocated equally between the Cities of Boynton Beach and Delray Beach. The plant uses the conventional activated sludge process and discharges treated effluent to the Atlantic Ocean by means of a 36-inch-diameter force main. terminating in a 30-inch-diameter outfall. Waste sludge is thickened, stabilized with lime, and land-spread on citrus groves by a contract hauler. Major improvements at the treatment facility to be funded in part by the proceeds from the 1990 Series Bonds include a new blower building and diffused aeration system, aeration basin covers, odor treatment facilities, and effluent pump station improvements. The improvements are designed to increase the total plant capacity to 24.0 mgd (annual average day basis), thereby allowing 12.0 mgd of capacity for the City of Boynton Beach, which is sufficient to satisfy year 2000 wastewater flows as shown in Table 3. Also included as part of the improvements is the demolition of the old Boynton Beach Wastewater Treatment Plant (WWTP). On the basis of the dbp019\049.51 15 information provided by Camp, Dresser and McKee, engineer-of-record for the South Central Regional Wastewater Treatment Facility, approximately 38 percent of the improvements for the South Central Regional Wastewater Treatment Facility are for expansion. The City estimates that its 56 percent share of the total cost of improve- ments at the facility is $6,472,000. Demolition of the Boynton Beach WWTP and other related improvements would bring the total cost to $7.5 million. Of that amount. $2.5 million will be paid from impact fees, with the remaining $5.0 million funded from the proceeds from the 1990 Series Bonds as shown in Figure 6. Further detail on the facility is attached in a separate comfort letter prepared by Camp, Dresser and McKee, Inc. (see Appendix E). ~ ~ dbp019\049.51 16 REGULATORY FRAMEWORK Standards of utility operation and water quality for public consumption have been established by the federal government under the 1974 Safe Drinking Water Act as amended. This Act. together with regulations established by the Florida Department of Environmental Regulation (FDER), set the regulatory framework w/thin which the City of Boymon Beach's water supply, treatment_ and distribution system must oper- ate. The systems are monitored by the Palm Beach County Public Health Unit oper- ating under the Florida Departmem of Health and Rehabihtative Services, Division of Health. Withdrawal of water from groundwater sources is regulated by the South Florida Water Management District under the Florida Water Resources Act of 1972, which establishes permitting requirements for water use. The City of Boynton Beach cur- rently has a Consumptive Use Permit for an annual average day withdrawal of 21.0 mgd and a peak day withdrawal of 28.4 mgd between the East and West Well Fields. At the West WTP, the City has satisfied, and must continue to satisfy, the requirements of the Lake Worth Drainage District (LWDD) pertaining to the impact of groundwater withdrawals on canal levels under the jurisdiction of the LWDD. Wastewater transmission and pumping facilities are regulated and permitted through the FDER with monitoring through the Palm Beach County Public Health Unit. Regulations governing wastewater treatment are discussed in a separate comfort letter prepared by Camp, Dresser and McKee. the engineer-of-record for the South Central Regional Wastewater Treatment Facility (see Appendix E). The water supply, treatment, and distribution facilities of the City, as well as its wastewater collection and transmission facilities, meet current permitting requirements. dbp019\049.51 17 CAPITAI IMPROVEMENTS The City of Boynton Beach funds projects for water and wastewamr capital facilities with debt financing and withdrawals from the Utility Capital Improvements Fund (UCIF). The UCIF consists of proceeds from impact fees. The City is also required ro maintain a Renewal and Replacement (R&R) Fund, which is funded with oper- ating revenues. Use of monies from R&R Fund allows the City to respond to immediate or short-term needs. The City of Boynton Beach and the Utilities Department are proposing that the City sell 1990 revenue bonds in an amount sufficient to finance $29.7 miIlion of the capital improvements shown in Tables 4 and 5 and summarized in Table 6. Tables 4 and 5 present a breakdown of capital improvements for the water system and the waste- water system, respectively, and include anticipated capital improvements to be funded by the proceeds from the 1990 Series Bonds. as well as projects funded from other revenue sources. Table 6 presents a summary, of the Utilities Department's proposed water and wastewater system capital improvements program (CIP) through 1993, which the City plans m finance with funds obtained from the proceeds of 1990 Series Bonds. The projects within the CIP. including those funded with proceeds of the 1990 Series Bonds? are required to accommodate the growth in population.and the expansion of the economy within the utility system's service area, and to upgrade and repair undersized and deteriorating equipment and facilities in,certain areas. As Table 4 indicates, $23,331.000 or 79 percent of the funds will be allocated to the water treatment and distribution system, and $6,362,000 or 21 percent will be used to fund the wasrewater collection, transmission, and treatment system improvement and expansion projects. In addition, 65.9 percent of the proceeds from the 1990 Series Bonds is allocable to expansion, and encompasses all those projects associated with the new West Water Treatment Plant, including the plant, wells and, piping for the West well field, finished water mains, and distribution reinforcement and looping. The remainder of the proceeds are dedicated to utility system improvements. The proposed Project will result in enhanced system capability for utility service delivery. The portion of the Project dealing with potable water service will increase water production capacity at the East WTP and the future West WTp, and will expand water delivery capacity within both the current and future service areas. System reliability and fire protection will also be enhanced. The wastewater improvements portion of the Project will provide mitigation Of odor problems and additional capacity at the South Central Regional Wastewater Treatment Facility, as well as generally improve the collection/transmission system reliability and capacity. dbp019\049.51 18 O3 I-- Z LU LU 0 o Table 6 COMPONENTS OF TIlE PROJECT FISCAL YEARS 1991-1993a Estimated Capital Expenditures Recommended Improvements (x $1,000)b 1991 1992 1993 Total Water System Improvements East WTP Improvements 1,266 1,249 1,248 3,763 New West WTP and Appurtenances 9,049 7,954 509 17,512 Water Supply Improvements 571 402 0 973 Water DiStribution System Improvements 394 344 345 1,083 Subtotal Water System tmpro~,ements 11,280 9,949 2,102 23,331 Wastewater System Improvements Wastewater Transmission and Telemetry 561 616 185 1,362 WaSteWater Tremment Improvements 4,000 1,000 - 5,000© Subtotal Wastewater System Improvements 4,561 1,616 185 6,362 Total All Improvements 15,841 11,565 2,287 29,693 a Fiscal Year extends from October 1 to September 30. b Cost opirdons are order-of-magnitude estimates in June 1990 dollars. ¢ The City of Boyaton Beach's share of capital improvements to be funded from 1990 Series Bond issue as provided by the City and as prepared by the wastewater consultant of the South Central Regional Wastewater Treatment and Disposal Board: FOURTH DRAFT 9/07/90 ADDITIONAL BONDS TEST The Additional Bonds Test is a mst of the abiliw of the utility system to generate net revenues adequate to provide required coverage' of the existiiag 'and the proposed annual debt service and is a condition of the 198.5 Bond Resolution for issuance of parity bonds such as the 1990 Series Bonds. This test requires the amount of net revenues for any four consecutive quarters in the preceding six quarters prior to the issuance of the new bond issue, adjusted by any' additional revenues expected to be realized, to provide coverage that will meet two specific requirements. For the City of' Boynton Beach. the four quarters within the period of July 1, 1989, through June 30, 1990, were used to test coverage. The results of the Additional Bonds Test are discussed beIow. In conducting the test, net revenues to the utility may be supplemented with additional revenues from two sources. The first source is additional revenue that will be realized when rates and charges for the services furnished by the City's Water and Sewer Utitiw have been revised and the re'vised rates and charges will be placed into effect before the delivery of the additional bonds. The additional net revenues that would have been realized during four consecutive quarters, if such rates and charges had been in effect during this time period may be treated as additional revenues for the Additional Bonds Test. For the first test, these adjusted net revenues cannot be less than 1t5 percent of the maximum annual principal and interest, requirements for all outstanding bonds includ- ing the 1990 Series Bonds. The Ciw is in the process of adopting and implementing revised rates and charges for the Water and Sewer Utiliw ~to become effective October 1, 1990), These new rates, had they been lmple'mented ~uring the JuN 1. 1989. to June 30. 1990. period, would have generated additional revenues of $1,097,798 and $434,350 for the water system and wastewater svstems, respectively, as shown in Table 7, based on the assumption that demand for utilities services wouid not have declined as a result of implementing higher rates. With the additional revenue, the 115 percent coverage requirement is met. For the second test. a second source of revenues may be incorporated as additional net revenue. The second source of additional revenue consists of revenue expected to be received as a result of making the improvements that will be funded by proceeds from the t990 Series Bonds. The estimated additiona] revenues to be received from such lmprovem¢ ms in the first full bond year following the bond year in wh ich such ~mprovements will be placed in opera~ior~ may be added to the r~venue estimated in the first test to calcuIate deb1 service coveraae. dbp019\,049.51 23 Table 7 ADDITIONAL BONDS TEST Operating Revenues 115% Test 135% Test Water Revenues Revenues from Existing Rates and Fees1 $ 6,305,637 $ 6,305,637 Additional Revenues: t990-1991 Rate Increase2 1,097,798 1,097,798 Improvements Provided by Projects3 3,567,997 Subtotal Water Revenues $ 7,403,435 $10,971,432 Sewer Revenues Revenues from Existing Rates and Fees1 $ 5,866,402 $ 5,866,402 Additional Revenues:' 1990-1991 Rate Increase2 434,350 434,350 Improvements Provided by Projects3 2,757,749 Subtotal Sewer Revenues $ 6,300,752 $ 9,057,501 Total Operating Revenues4 $13,704,187 $20,029,933 Total Operating Expeuses1 ($8,117,519) ($8,117,519) Other Revenues (Expenses)1 Investment Income $2,039,741 $2,093,741 Contributions from Enterprise Fund 109,534 169,534 MiscellaneOus Income 226,030 226,030 Capital OutlaY (488,111) I (488,111) Refunds (1,650) i (1,650) Subtotal Other Revenues (Expenses) $1,885,544 $1,885,544 Net Revenues (Revenue Available for Debt Service) $7,472,212 $13,797,958 Debt Service$ Revenue Bonds (Series 1985) $2, t25,000 $2,125,000 Revenue Bonds (Series 1990)7 2,250,000 2,250,000 Total Debt Service $4,375,000 $4,375,000 Debt Service Coverage on Debt6 1.71 3.15 1 Data provided from the Finance Department of the City of Boynton Beach for the quarters ending 9/30/89 through 6/30/90. 2 Additional Revenues from 1990-1991 Rate Increase were calculated using the proposed 1990- 199t rates for the actual number of accounts and consumption provided by the City. 3 Additional Reyenues from Impr0vements Provided by Projects were calculated using information provided by the City, which included an 8.5 percent projected growth in the customer base and the 1993-1994 proposed rates. 4 Excludes construction fund and impact fee funds. 5 Estimated maximum principal and interest requirements for any bond year, as provided by the City. ' ~ 6 Equal to Net Revenues (Total Revenues minus Total Expenses) divided by the Total Debt Service. The Net Revenues include the Additional Revenues. 7 Preliminary, subject to change. FOURTH DRAF~ 9 07/90 dbp019\056.51 All improvements included in the Project will be completed and operational by September 30, 1993: the next bond year 'oegins November L 1993. and ends October 31. 1994. The second Additional Bonds Test is met when the percentage derived by dividing the amount of actual net revenues in the appropriate four consecutive quarters, adjusted with the two additional revenue sources discussed above, by' the maximum amount of the principal and interest requirements for any bond year thereafter, including the proposed additional bonds, is equal to or greater than 135 percent. As Table 7 shows, the water and sewer revenues adjusted by the additional revenues and less the total water and sewer expenses satisfy the 135 per- cent Additional Bonds Test. As in the case of the first test, this consideration is based on the assumption that demand for utility services will not decline as a result of implementing the higher/-ales. On the basis of the assumptions outlined in this statement, utility system revenues would be sufficient to satisfy the Additional Bonds Test. dbp019\049.51 25 CONCLUSIONS The following statements constitute the conclusions regarding the City of Boynton Beach's plans to improve hnd expand its water and wastewater systems througi~ the issuance of She 1990 Series Bonds: - o The projects within the CIP are required to accommodate the growth in population and the expansion in the economy within the utility's service area, and to upgrade and repair undersized and deteriorating equipment and facilities in certain areas. The existing Utilities Department management and staff have reasonable experience and qualifications for their responsibilities within the water and server systen~ g~dditionaI staff will be required as the system grows. The water supply, treatment, and distribution system and the wastewater collection and transmission system have been operated and maintained in accordance with standard utility practice. These systems provide reasonable water and sewer service to the Ci's requirements, ty customers and meet current permitting The successful upgrading of wells in the East Well Field. combined with construction of aquifer and storage recoverv wells and completion of four new wells in the West Well Field, are estimated' to provide sufficient raw water supply to meet projected demands through Fiscal Year 1994. The proposed water treatment facilities included in the Project are being designed by CH2M HILL to be in compliance w/th current applicable rules and regulations. Sufficient treatment capacity is estimated to be available upon completion of the West WTP in mid-1992 to meet projected water demands from the service area through 1994. The City's existing water storage capacity of 5.5 mg is sufficient to accommo- date the estimated buildout storage volume of 5.0 mg. Upon completion of the Project's wastewater transmission system improve- ments, including rehabilitation of certain pump stations and completion the telemetry system to each pump station, the system is estimated to adequately provide capacity for pumping and transmission of wastewater to meet pro- jected demands through Fiscal Year t995 when supplemented by repair and dbp019\049.51 26 10. 11. 12. 13. 14. 15. replacement activities funded from revenue sources other than proceeds of the 1990 Series Bonds. improvements at the South Central Regional Wastewater Treatment Facility hax;e been designed by Camp, Dresser and McKee. consulting engineers, to increase total plant capac/ty to 24 0 mgd (annual average day basis). Of that capacity, 12.0 mgd is allocated to the City of Boynton Beach. which is sufficient ro satisfy projected year 2000 waste~vater flows. The water and wastewater system concepts proposed to be implemented in the Project represent widely practiced technologies in the distribution, storage, and treatment of water and collection, pumping, and trar~smission of wastewater. The Project is a feasible, viable, and cost-effective alternative for enhancing water and wasrewater service w/thin the City of Boynton Beach based upon review of previous studies and reports without independent verification of the inform&tion contained in those rdports, and based upon the information de- veloped by CH2M HILL as engineering professionals using established prin- ciples and practices of the profession as [hey relate to utility planning. The projected construction schedules and costs estimated in this statement for the Project facilities are reasonable for completion of the Project. Items such as final regulatory agency reviews, which are beyond the control of the City or the design professionals, may cause specific events to not occur as anticipated. in addition, other events may occur affecting the cost and availability of materials, equipment, and labor, which cannot be predicted. The proceeds from the 1990 Series Bond Issue plus earnings thereon are sufficient to fund the cost of the Project. On the basis of the assumptions outlined in this statement, sufficient revenues can be generated by the water and wastewater systems to meet operaung expenses, working capital reqmrements, debt service payments and coverage, and other financial requirements to satisfy the requirements of the Additional Bonds Tests. The capital improvements included in the 1990 Series Bond Issue related to water and wastewater treatment and associated distribution piping and water supply facilities are estimated to have useful lives in excess of the term of the 1990 Series Bond Issue. - - dbp019\049.51 27 APPENDIX E CONSULTING ENGINEER'S STATEMENT REGARDING CERTAIN IMPROVEMENTS TO REGIONAL WASTEWATER TREATMENT PLANT C )M October 1, 1990 CAMP DRESSER & McKEE INC 1500 N W 49th Slree' Suite 300 Post Office Box 9626 Fo~ Lauderdale, Florida 3331E 305 776-1731 City of Boynton Beach P. O. Box 3 t0 Boynton Beach, Ftorida 33425 RE: South Central Regional Wastewater Treatment Plant Odor Abatement-Aeration Basins and Effluent Pump Station Expansion CDM Project No. 617t-05 Dear Sirs: As the engineer of record for the South Central Regional Wastewater Treatment PIant, we have been requested to provide this letter conceming certain improvements being financed by the City of Boynton Beach. Florida. as part of its Water and Sewer Utility Revenue Bonds. Series 1990. The bond proceeds will be used to fund an odor abatement program through the construction of a new blower building and diffused aeration system, eIectrical system improvements, aeration basin covers and odor treatment facility. Bond proceeds will also be used to fund effluent pump station improvements and expansion. The following statements constitute the conclusions regarding improvements to the South Central Regional Wastewater Treatment Plant: The existing staff of the South Central Regional Wastewater Treatment Plant have reasonable experience and qualifications for the operation of the current facility and planned improvements. The proposed pump station improvements and expansion, as well as the proposed improvements related to the odor abatemen [ program. if constructed as designed by Camp Dresser & McKee Inc. will be in compliance with regulatory requirements to the best of our knowledge, information, and belief. A construction permit has been obtained from FDER for the plant improvements and pump station expansion. An operating permit has also been apptied for and is expected to be issued following resolution of recently enacted changes to Chapter 174.244 of the Florida Administrative Code which ~liows toxicity testing using, samples diluted to 30 percent concentration and a request for a mixing zone for chlorine residual. An NPDES permit has been issued by EPA. and is currently under review regarding test species. The South Central Regional Wastewater Treatment and Disposal Board will be requesting a modification to the permit to allow biotoxlcity City of Boynton Beach Page 2 October [. 1990 CAMP DRESSER & McKEE INC. testing at concentrations allowed under Chapter 174.244 of the Florida Administrative Code. Based on the current status of ongoing negotiations, resolution of these permits appears to be forthcoming. The operation of wastewater treatment and pumping facil ties is regulated through the Florida Department of Environ mental Regulation with monitoring through the Palm Beach County Public Health Unit. The Sou? Central Regional Wastewater Treatment Plant is current y in comphance with all regulatory requirements except as noted in item 2 above. 4. The proposed improvements will provide sufficient treatment capacity to meet the two Cities combined treatment requirements through the year 2010 based on population and flow projections contained in the 1990 Comprehensive Plan for the Cities of Boynton Beach and Delray Beach. Beyond the year 2000. when flow from Boynton Beach Exceeds its 12 mgd share of the plant capacity. arrangements will be necessary for Boynton Beach to obtain additional treatment capacity. 5. The project is a feasible, viable, and cost effective alternative for enhancing wastewater service within the Boynton Beach area based upon information developed by Camp Dresser & McKee Inc. engineering professional using established l~rincipals and as practices of the profession as they relate to utility planning. 6. The total construction cost of the South Central Regional Wastewater Treatment Plant improvements, based on the Iow bid received March I, 1990. is $[0,935.000. Engineer}ng costs are $1.389,000 and a contingency of $5b0.000 is recommended. There is also a $120,000 ticense fee to be paid to Sanitaire Water Pollution Control CoCporation for use of the HC1 gas diffuser cleaning system. The City's share of this total cost is then $6.472.000. Approximately 38 percent of this cost is related to expanding the capacity of the effluent pump station. CDM has not estimated the cost of demolition at the old Boynton Beach Wastewater Treatment Plant nor any other collection system improvements, The funding sources for the South Central Regional Wastewater Treatment Plant improvements and expansion are bonds and impact fees, as outlined in the Engineer's Statement prepared by CH2M Hill. City of Boynton Beach Page 3 October 1. 1990 CAMP DRESSER & McKEE INC. 7. The useful life of the project being financed with the bonds is expected to be greater than the thirty years for which the bonds a.re.outstanding. This useful life applies to the structural and t~pmg comp~onents of the project. It is recognized that during e course ot normal use, the mechanical elements of the project (e.g. pumps, blowers, and other equ pment) will require proper renewal and replacement and funds should be set aside for lhe renewal and replacement of these elements. 8. Const,mction at the South Central Regional Wast Plant ~s scheduled to ~-~--:- -- ~,-. - ewater Treatment ~"-s-, un uctOoer 1, 1990 with Completion 15 months later This represents a rea~onabl frame for completion of the project, e time 9. All representations contained in the official statement with regard to improvements to the South Central Regional Wastewater Treatment Plant are Correct. Sincerely, CAMP~.~_~DRESSER ~cKEE~~ INC. 1 Bruce R. Snyder. P.E. BRS/sek File No. 6171-0I-CG~NSP APPENDIX F RATE CONSULTANT'S L-E'i~DER-CONCERNING RATE ANALYSIS / DA VID M. GRIFFITH AND ASSOCIATES, LTD. PROFESSIONAL SERVICES TO THE PUBLIC SECTOR 1521-A KILLEARN CENTER BOULEVARD TALLAHASSEE. FLORIDA 32308 (904¢ 668-0363 September 28.1990 City Commission City of Boymon Beach 100 East Boynton Beach Bo~evard Boynton Beach, Florida 33425-0310 RE: City of Boynton Beach, Florida Water and Sewer Utility Revenue Bonds, Series 1990 Dear Sir or Madam: As the water and sewer rate consultants for the City of Boynton Beach, we have been requested to provide this letter concerning the Water and Sewer Rate Analysis we performed in the support of the issuance of the City's Water and Sewer Utility Revenue Bonds, Series 1990. We have applied certain agreed-upon procedures, as enumerated below, with respect to the City of Boynton Beach's (the City) Domestic Water and Sewer Utility Systems. The procedures we performed were made solely for the purpose of deter- mining whether the City's new schedule of rates can fully support the City's Utility Systems. The procedures we performed are summarized as follows: We projected Utility System revenue requirements for capital costs, debt service, and operating expenses, and we estimated revenues required from each revenue SOurce. We developed cost of service allocations and unit costs. We developed and tested alternative rate structures, including connection and other spec/al charges. City of Boymon Beach September 28, 1_990 Page Two We documented and presented our findings. We presented preliminary draft re- ports for City r'eview and comment. Our final Report. Water/Wastewater and Capital Facilities Charge Anatys~s' (April 1990), mcorporated the City s review and comment. We then presented our findings before the City Commission and Manag- er. Additionally, we have performed mathematical tests pertaining to the Rate Cove- nant Test to determkie that: (a) Revenues in each of the fiscal years ending September 30, 1991 through 1995, inclusive, will at least equal the sum of: (i) 100% of current expenses for each fiscal year; (ii) 1_25% of the principal and interest requirements for each fiscal year (iii) 100% of the reserve account deposit requirement for each fiscal year: and. (iv) t00% of the amount required to be deposited in the Renewal and Replacement Fund during each fiscal year pursuant to Section 705 of Cit.,~ Resolution No. 85-YYY. (b) Revenues. exclusive of income from investments of monies under Resolution No. 85-YYY, shall be at least equal to 115% of the principal and interest requirements for each fiscal year. As you are aware, projections are conjectural by nature and no guarantee is made as to the ultimate accuracy of projections given in our final report. DMG utilized certain assumptions provided by the City of Boynton Beach. It should be understood that the attainability of these results depends upon the accuracy of the major assumptions used iv making thi~ determination. Significant variances from these assumptions could produce ~ different result. City of Boynton Beach September 28. 1990 Page Three In connection with the procedures referred to above, no matters came to our atten- tion that caused us to believe that the rate covenant requirements will not be met, as out- lined in Exhibk "A", Rate Covenant Test, attached hereto. Because the above procedures do not constitute an audit made in accordance with generally accepted auditing standards, we do not express an opinion on any financial statements of the City of Boynton Beach. taken as a whole. Respectfully submitted, DAVID M. GRIFFITH & ASSOCIATES, LTD. By: Robe~ E. Sheets Vice President RES:bjh City of Boynton Beach, Florida Water and Sewer Utility Revenue Bonds, Series 1990 Cig - CAB Structure, 10/10/90 Pricing EXHIBIT "A" RATE COVENANT TEST FY 1991 FY I992 FY 1995 Water Sa[es 7,747,667.00 Sewer Sa[es 6,5310700.00 Other Revenues 577,462.00 FY 1994 FY 1995 11,817,848.00 13,T70,365.00 8,342,869.00 9,052,013.00 9,097,219.00 10,345,482.00 7,086,895.00 7,689,281.00 626,546.00 679,803.00 737,586.00 800~281.00 GrossEevenue 14,856,829.00 16,810,6~0,00 18,714,566.00 20,898,303.00 23,622,659.00 Operating Expenses Water System (4,832,572.00) (5,152,256.00) (5,456,543.00~ (6,189,433.00) (6,520,~41.00) Wastewater SysTem (5,267,093.00) (5,641,826~00) (6,028,214.00) (6,473,815.00) (6~956,136.00) Other Expenses (568,01~.00) (576,922.00) (587,309.00) (643,760.00) (645,551.00) Renewal and Replacement (240,000.00) (240,000.00) (240,000.00) (240,000.00) (240,000.00) Total Operating Expenses (10,907,683.00)(11,611,004.00)(12,312,066.00) (13,5~7,008.00)(14,362,028.00) Net Operating Revenue Series 1985 Debt Service Series 1990 Debt Service Total Debt Service Coverage from Water 3,949,146.00 5,199,656.00 6,402,500.00 7,351,295.00 9,268,631.00 2,089~830.00 2,088,667.50 2~085,832.50 2,080~695.00 2,077~407.50 1,321~785.21 2,265,917.50 2,285,307;50 2,284,072.50 2,282,807.50 3,411,615.21 4,354,585.00 4,3~1,140.00 4,364,767.50 4,360,215.00 Total Debt Service Coverage from Water and ~astewater Rates & and Wastewater ~ates 1.16 1.19 1.46 1.68 2.12 Net Operating Revenue 3,949,146.00 5,199,656.00 6,402,500.00 7,351,295.00 9,260,631.00 ~nvestmen't income 2,299#192.00 2,455,611.00 2,623,785.00 2,804,605.00 2,999,031.00 6,248,338.00 7,655,267.00 9,026,285.00 10,155,900.00 12,259,662.00 3,411,615.21 4,354,585.00 4,371,140.00 4,364,767.50 4,360,215.00 1.83 1.76 2.06 2.33 2.81 Source:David M. Griffith and Assoc[ates, LTD. City of Soyn~on Neach, Florida Water and Sewer Utility Revenue Bonds, Series 1990 RATE COVENANT TEST FY 199~ FY 1992 FY 1993 FY 1994 FY 1995 7,747,667.00 9,097,219.00 10,345,~82.00 11,817,848.00 I3,770~365.00 6,531,700.00 7,086~895.00 7,689,281.00 8,342,869.00 9,052;013.00 577,462.00 626,546.00 679, B03.08 737,586.00 800,281.00 Gross Revenue 14,856,~329.00 16~810,660.00 18,714,566.00 20,898,]03.00 23,622,659.00 Operating Expenses Water System (4,832,57~.00) (5,152,256.00) (5,456,543.00) (6,189,433.00) (6,520,341.00) Wastewate~ System (5,267,093.00) (5,641,826.00) (6,028,214.00) (6,473,815.00) (6,956,13~.00) Other Expenses (568,018.00) (5?6,922.00) (587,309.00) (643,760.00) (~45,551.00) Renewal and Replacement (240,000.00) (240,000.00) (240,000.00) (240,000.00) (240,000.00) Total Operating Expenses (10,907,683.00)(11,611,004.00)(12,312,066.00) (13,547,008.00)(14,362,028.00) Net Operating ~evenue Series 1985 Debt Service Series 1990 Debt Service Total Debt Service Coverage from Water and ~astewater Rates ~,949,146.00 5,199,656.00 6,402,500.00 7,351,295.00 9,260.631.00 2,009,830.00 2,088,667.50 2,085,832.50 2,080,695.00 2,077,407.50 1,312,584.58 2,250,145.00 2,254,990.00 2,254,677.50 2,254,360.00 3,402,414.58 4,~8,812.50 4,540,822.50 4,335,372.50 4,331,767.50 1.16 1.20 1.47 1.70 2.14 Net Operating Revenue 3,949,146.00 5,199,656.08 6,402,500.00 7,351,295.00 9,260,631.00 [nvestmen~ Income 2,2~x2,192.00 2,455,611.00 2,623,785.00 2,804,605.00 2,999,031.00 6,248,338.00 7,655,267.00 9,026,285.00 10,155,900.00 12,259,662.00 3,402,414.58 4,338,812.50 4,340,822.50 4,335,372.50 4,331,767.50 Total Debt Service Wastewater Rates & 1.84 1.76 2.08 2.34 2.83 Source:David M. Griffith and Associates, LTD. APPENDIX G FORM OF BOND COUNSEL OPINION APPENDIX G Form of Bond Counsel Opinion October , 1990 City of Boynton Beach, Florida Palm Beach County, Florida RE: $ City of Boynton Beach, Florida, Water and Sewer Utility Revenue Bonds 'Series 1990 ' Ladies an~ Gentlemen: We have acted as bond counsel in connection with the issuance and sale by City of Boynton Beach, Florida (the "Issuer") of its $-. aggregate principal amount Water and Sewer Utility r~evenue Bonds, Series 1990 (the "Bonds"). The Bonds are issued )ursuant to the Constitution and laws of the State of Florida, )articularly the Charter of the Issuer and Chapter 166, Florida Statutes (collectively, the "Act"), and Resolution No. 85-YYY adopted by the Issuer November 19, 1985, as amended and supplemented (the "Resolution"). All terms used herein in capitalized form and not otherwise defined herein shall have the meanings ascribed thereto in the Resolution. The Bonds have been issued in the form of fully reg!stered Bonds for the purpose of providing funds to (i) acquire and construct certain additions to the Issuer's water and sewer cUtility' system, (ii). fund a debt service reserve, and (iii) pay ertaln costs of Issuing the Bonds. In rendering the opinions set forth herein, we have examined certified copies of the Resolution and are relying on the representations,. . covenants and agreements of the Issuer contained therein, including, without limitation, the covenant of the Issuer 4599M City of Boynton Beach, October , 1990 Page 2 Florida contained in the Resolution to comply with the applicabl~ requirements contained in Section 103 and Part IV of Subchapter of Chapter 1 of the Internal Revenue Code of 1986, as amended, an all temporary, proposed or permanent implementing regulation~ promulgated thereunder or applicable thereto (the "Code") to thc extent necessary to preserve the exclusion of interesn on th Bonds from gross income for federal income tax purposes. As to questions of fact material to our opinion we have retie upon representations Of the issuer contained in the Resolution an< upon other certifications, agre~ments~ documents, and opinions o~ p~blic officia%S and other ~fficers and repreJentativ~s of the various par%les par~ticipating in this transaction, furnished t¢ us, without undertaking to verify the same by independent investigation. We have assumed the genuineness of all signature~ on all documents and instruments, the authenticity of documents submitted as originals and the conformity to originals of documents submitted as copies. We have not been engaged to or undertaken to review the accuracy, completeness, or sufficiency of any offering materials relating to the Bonds, and we express no opinion relating theretc herein. This opinion shall not be deemed or treated as an offering circular, prospectus or official statement, and is not intended in any way to be a disclosure document used i~ connection with the sale or delivery of the Bonds. We have not been engaged to and therefore express no opinion as to the compliance by the Issuer with any federal or state statute, regulation or ruling with respect to the sale or distribution of the Bonds. The opinions set forth below are expressly limited to, and we opine only with respect to, the laws of the State of Florida and the federal income nax laws of the United States of America. Based upon and subject to the foregoing, we are of the opinion as of the date hereof and under existing law, as follows: 1. The Resolution constitutes a valid ~nd binding obligation of the Issuer, enforceable in accordance with its terms. 2. The Bonds have been duly authorized, executed, and delivered by the Issuer and are valid and binding special obligations of the Issuer, payable solely from the sources provided therefor in the Resolution. 3. The interest on the Bonds ~s excludable from gross income of the Owners thereof for federal income tax purposes and ~s not an item of tax preference described in Section 57 of the Code for 4599M City of Boynton Beach, Florida October__, 1990 Page 3 purposes of the federal alternative minimum tax imposed on individuals and corporations. It is to be noted that with respect to certain corporations such interest may he required to be taken into account in determining adjusted net b00k income and/or adjusted current earnings for purposes of calculating the alternative minimum taxable income of such corporations. The opinions expressed in the first sentence of this paragraph are conditioned upon continuing compliance by the Issuer with Various covenants contained in the Resolution, including, Without limitation, its covenant to comply with applicable requirements of the Code necessary in order to preserve the eXclusi'o~ of interest on the Bonds from gross income for federal income tax purposes. Failure by the Issuer to comPiy with such requirements could cause the interest on the Bonds to be includable ~n gross income for federal income tax purposes retrosctive to the date of issuance of the Bonds. Other provisions of the Code may give rise to collateral federal i~ome ta~ consequences (which ma~ be adverse) to particular Holders. This 6pinion is limited to matters expressly addressed above .and n~ opinion i~eXpressed herein ownershipregarding of other the ~o~ds.f~d~ral tax consequences that ma~ arise due to 4. The Bonds are exempt from all present intangible personal property taxes imposed by the State of Florida. Our opinions expressed herein are predicated upon present laws and interpretations thereof. We assume no affirmative obligation with respect to any Change of circumstances or law (including laws that may result f~om legislation ~ending before Congress) that may adversely affect the tax-exempt status of interest on the ~onds after the date hereof. It is to be understood that the rights of Owners of the Bonds and the enforceability of the Bonds and the Resolution may be subject to the provisions of the bankruptcy laws of the United States of America a~d to other applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting creditors' rights, heretofore or hereinafter enacted, to the extent constitutionally applicable, and that thei~ enforcemen5 may also be subject to equitable principles that may affect remedies or other equitable relief, or to the exercise of judicial discretion in appropriate cases. Very truly yours, MOYLE, FLANIGAN, tCa. TZ, FITZGERALD & SHEEHAN, p.a. 4599M APPENDIX H SPECIMEN MUNICIPALBOND INSURANCE POLICY Endorsement AMBAC Indemnity- CorlX~tton c/o CT Corporation Systems 222 West xX~shington Avenue Madison, Wisconsin 53703 Administrative Office: One State Street Plaza New York, New york I0004 Policy issued to: Attached to and forming pa~ of The Policy to which this endorsement is alt,ached and of which following language: *'Notwithstanding anything contained herein t Insurance Trustee shall disburse that portion of the of Nonpayment to a Bondholder only upon evidence payment of the prfl~pal or interest then Due for books maintained for such purpose. 1. coupon or fight of payment ofprinc pal or i thereender, including the Bondholder's n amended by the insertion of the only in book entr~ form, the it on the Bonds Due for Payment but unpaid by reason Trustee of the Bondholder's right to receive effectively transferred to AMBAC on the become the owner of the Bond. appurtenant and shall be fully subrogated to all the Bondholder's rights Nothin limitations oft or ex~end any of the terms, conditions, provisions, agreements or other than as above sated. duly authorized bas caused its Corporate Sero to De hereto al:F~xed and these presents to be signed by its officers in facsimile to become effective as its original seal and signatures and binding on the Company by viz-rue of countersignatore by its duly authorized agent AMBAC Indemnity Corporation Municipal Bond Insurance Policy csoCrcoq~at~sysmm 222 W. WasttinglDn A~.,~Wi 53703 ' Adrninis~a~e Offxm One State Street Plaz~Newyork NY 10004 Issuer: Policy Number: ~&C I~O,~mn;ty Corporation (AMBAC)A W~omM ~ tmu~ Co~ M co~id~ of ~e pa~en~ of ~e p~emium ~d s~ to ~e te~ of ~ ~i~ berry ~ to ~ tQ ~ Unit~ ~on ~ ~ pdne~ of ~d inter~t 0n ~e ~ debt ~ w~ s~l ~ome ~ for ~C of to &e Bondhoiderk duly authorized s nominee. In cases ~r their assigns, the delivery to the Insurance Trustee .=,duly executed by the claimant Bondholder or AMBAC shall be gubrogated to all of the Bondholders' rights to person~other than the Issuer who. at the time of Nonpayment. is the owner when referring to the principal of Bonds. is when the fund installment has been (other than by acceleration or other advancement of ..m. aturity; and. when referring ~o £ Nonpayment" means ~ failure Bonds principal of and interest on the prior to matun~ 'Flus ~PohcY dQes not ms.re against ,k~ss of any cedemptlon, prepayment or acceleration premium which at any time ~ay~cDme due in respect of any Bon~. nor against risk otb~ than NonpaymenL ,~, ~ml?s ~w~ere~[ AMBAC has caused this Policy~to be ~xed with a facsimile of irs corporate seal and to be signed by its ~,y ?~th?~z~.~mc~ i~;gC~ to h%o~e e~ve ~ i~ o~i~al ~a =a ~ig~e~ a~d bina.g upon ~'~^C Secretory ~ STALES TRUST COMPANY OF NEW YORK acknowledges that it has agreed to perform the duties of Insurance Trustee under this Polioz Endorsement Policy issued to: anacbed to and forming par of Effective Date of Endorsement: The insurance provided by this policy is not covered by the Florid~ Nothing limitations of the abov( r~ Corporate Seal to be hereto affixed and these presenm to be signed bv its ffective a~s its original seal and signatures and binding on the Company by authorized agent. AMBAC Indemnity Corporation APPENDIX I ACCRETED VALUES TABLE City of 8oynton Beach, Florida Water and Sewer Utility Revenue Bonds; Series 1990 gib - CAB Structd~, 10/10/90 ~ricing Accre~ed Value table Yield 7.850% 7.850% 7.850% 7.850% Date 11/01/2016 11/01/2017 11/01/2018 11/01/2019 11/01/2020 10/24/90 578,05 11/01/90 578,95 05/01/91 601.65 11/01/91 625.25 05/01/92 649.80 11/01/92 675.30 05/01/93 701.85 11101/93 729.40 05/01/94 758.00 11/01/94 787.75 05/01/95 818.70 11/01/95 850.80 05/01/96 884.20 11/01/96 918.90 05/01/97 955.00 11/01/97 992.45 05/01/98 1,051.45 11/01/98 1,071.90 05/01/99 1,114.00 11/01/99 1,157. Z0 05/01/2000 1,203.15 11/01/2000 1,250.35 05701/2001 1,299.45 11/01/2001 1,35~.45 05/0172002 1,403.45 11/~T/2002 1,458.55 05/01~2003 1,515.80 05/01/2004 1,637.1 11fG1~2004 o5/o~o05 ~1/o~'/;oo5 05/0q~006 11/0~2006 o5/0~/2oo7 11/ 11/0~ 11/01/201~ 05/~I/20~0 11/01'/208~ 674.30 624.35 675,30 625.25 701.85 649.80 729.40 675.30 758.00 701,85 787.75 729,40 818.70 758.00 850.80 787.75 884.20 818.70 918.90 850.80 955.00 884,20 992.45 918.90 1,031.45 955.00 1,071.90 992.45 1,1t4.00 1,031.45 1~157.70 1,07~.90 1,203.15 1,114.00 1,250.35 1,157.70 1,299.45 1,203.15 1,350.45 1,~50.35 1,403.45 1,458.55 1,350.45 1,5~5.80 1,403.45 1,5~5,30 1,458.55 1,637.15 1,515.80 1,701.40 1,575.30 1,768.15 1,637.15 1,837.55 1,701.40 1.909.70 1,768.'~5 1,9,84.65 1,83;7.55 2,0~2.55 1,909.?0 2,143.50 1,984.65 2,2~7.65 2,062-55 2,3~5.0~ 2,143.50 2,405.95 2,;~2~'.65 2,5~0 ~ 2,315.05 2,598.50 2,4~.~ ~,~.so 2,~16.65 3~031.15 2,~6.50 3,150.10 3,2~..~ 3,~1.15 3,~.25 3, tSB. lO 3,&~.~ 4,1~,45 3,~.~ 4,4~.60 4,1~.45 4,~.45 4,~.35 4,8~1.15 4,4~.60 5,0~.~0 4~.45 4,8~1.15 5,000.00 2,70~3.50 2,91~65 ~.4~ ,1~ 5,000.08 535.25 495.55 536.05 496.30 557.05 515.80 578.95 536.05 601.65 557.05 625.25 578.95 64.9.80 601.65 675.30 625,25 701.85 649.80 729,40 675.30 758.00 701.85 787.75 729.40 818.70 758.00 850.80 787.75 884.20 B18.70 918.90 850.80 955,00 884.20 992.45 918.90 1,031.45 955.00 1,071:.90 1,~14.00 1,051.45 1,157.70 1,07~.90 1,203~15 1,114.00 1,250._~5 1,157.70 1,299.45 1,203.15 1,~50.45 1,250.35 1,403.45 1,458.55 1,350.45 1,5~5.80 1,403.45 1,575.~0 1,458,55 1,637.15 1,51~.80 1,701,40 1,57570 1,768.15 1,63~.15 1,~;~70 1,768'~15 1,984~65 1,8~?.55 2;0~55 1,90~;70 ~,227,~ 2,062~55 ~,315Los ~,4o5.95 z,~.~ ~,405L95 · 2,91~.6~ 3,~t. Is ~,806~50 3,1~0~9 ~9~6~65 3,27'~.7~ $~408.25 3,150~1~ 3,~JS.S8 4,12~.45 4,~&.SH 3,96E.~FO 4,454.60 4,124.,45 4,629.45 4,2~6J35 4,831.15 4,454,60 5,000,00 5,000.00 457~M/2 S EXHIBIT "E" DTC Letter of Representations Letter of Representations TO BE COMPLETED BY ISSUER AND AGENt. IF ANY _ City of Boynton Beach, Florida Barnett Banks Trust Company, N.A. The Depositor3, Trust Company 55 ~A%ter Street New York, NY 1004 ] Attention: General Counsel's Office Re: $33,434,415 __ City of Boynton Beach, Florida, Water and Sewer Utility _ Revenue Bonds, Series 1990 _ 0_/z0/90 (Dale] Gentlemen: (issue Descnpt~on} ]~ T~he~L-P1-~~ ~lletter is tO set out certain matters relating to the above-referenced Bonds (the "Bonds"). ' --~y, N.A. is acting as Trustee, Paving Agent, Fiscal Agent, or oH~er Agen~ of the Issuer with respect to the Bonds. The Bonds will be issued pursuant to a Trust indenture, Bond Resolution, or other such document authorizing the issuance of the Bonds dated as of. ~to~ 10 , I9~Q. (the "Document(s)"). ~ ~ey, H~ris is distributing the Bonds through The Depository Trust Company ("DTC"L Uphm ~ ~. ~rat~, ~u~eatm ~pi~l ~oup, Inc., ~. · ' 'tchell s iat ~ n~ Br~ & Sons ~rat~ to d~e Bonds, the Issuer and d~e Agent, if anx7 make the follox~ mg revresentadons to DTC 1. Subsequent to Closing on the Bonos on ~to~ 24 , 19 90 , there shall be deposited wid~ DTC one Bond certificate in registered form registered ' ' -- m the name oI DTC's nominee, Cede k Co., for each stated maturity of the Bonds in the face amounts set forth on Schedule A hereto, the Iota] of which represents 100~ of the pnncipaI amount of such Bonds. 2. tn the event of an}' solicitation of consents from and voting by lolder~ of tile Bonds. tile Issuer or Agent, shall establish a record date for such purposes and give DTC notice of such record date not less than 15 calendar days in advance of such record date to the extem possible. n thc 2x'cnt of a redemption or auy other similar transa :don resulting in retirement of ali Bonds om'~tandin; or a re :don in aggregate principm amount ~' c I Bonds outs/aumng ("full or partial redemption") or an advance refunding of ~11 or part of thc Bonds outstauding, the Issuer or AgenL shall give DTC not cc of such event riel less thau 3ti days ~o,r more than 6{} days prior to the redemption dale t}r. m thc case m' ao advance refunding, thc date the proceeds are posited in escrow 4. In the event of a partial redtm~ption or an advance refunding oI part of the Bonds t~utstanding, the Issuer or Agent shalI send DTC a notice specifying: 1) the amount of the redemption or refunding; 2) in the case of a refunding, the maturity date(s) established under the refunding; and 3) the date such notice is to be mailed to Bondholders or published ("the Publication Date"). Such notice shall be sent to DTC bv ~ secure means (e.g., legible facsimile transmission, registered or certit:ied mail, overnight express delive~?) in a timely n~anner designed lo assure that such notice is in DTC's possession no later than the close of business on the business da',, bcd-ore the Publicatior Date. The Issuer or Agent will forward such notice either in a separate secure transmission for'each CUSIP number or in a secure transmission for multiple CUSIP rmmbers which includes a manifest or list of each CUSIP submitted in that transmission. (The Issuer or Agent sending such notice shall have a method to verify subsequently the use of sud`t means and timeliness of the notice,) The Publication Date shall be not less than 30 days nor more tha;~ 60. days prior to the redemption date or~ in the case of an adva'nce refunding, the date the proceeds are deposited in escrow. 5. in the event of an invitation to tender the Bonds, notice to Bondholders b`t, the Issuer or Agent, specifying the terms of the tender and the date such notice is to be mailed to Bondholders or published ~"the Publication Date") shall be sent to DTC bv a secure means (e.g., legible facsimile transmission, registered or certified mail, overnight express d,elivery) in a timely manner designed to assure that such notice is in DTC's possessmn no later than the close of business on the business day before the Publication Date. (The Issuer or Agent sending such notice shall have a method ~o verify subsequently the use of such means and timeliness of the notice.) ,. All notices and payment advices sent to DTC shall contain the CUSIP number of the Bonds. ~. Notices to DTC by facsimile transmission shall be sent to DTC's Call Notification Det~artment at . ,. 'I6) 227-4039 ur (516) 227-4190. Notices to DTC by mail or ail5' other means shall oe sent :o: The Depositor).. Trust Company Call Notification Department Muni Reorganization Manager 71: Stewart Avenue Garden C/tv, Nh' '11530 8. Interest payments shall be received by 7ede & Ct as nominee of DTC, ur its ree,stered as~,igns m next-day tuuds on each payment da e tot the equivalent in accordance with emstmg arrangements between thc Issuer t~r Ageut and DTC). Such payments shall be made payable to the order of Cede & Co. 9. Payments of principal shall be received by Ced ~ & Co.. as mm~inee of DTC. or its registered assigns in nexNdav funds on each paymem date. Principal payments shall be made payable to the order tit' Cede & Co.. and shall be a'ddressed as follows: The Depositor3,, Trust Company Muni Redemption Departn`tent 55 Water Street-50th Fit}or New hork Nh' 10041 Attentiou: Collection Supervisor 1. Itt :Itc evenl of a redemption, acceleration .r any other similar transaction le.g., tenders made and accepted in -response to the 1.,sner's or Agent's invitation) nece:,sitating a reduclkm n' aggregate principal amount of Bonds outstanding or an advance refunding of peri iff tlte Bond.,, outstanding, DTC, in its discretion. (a) may nx]uest the Issuer or Agent to issue and autltenticate a new Bond certificate or (b) slmll make an appropriate notatim~ on the Bond certificate indicating the dale and amounts of such reduclion in ~rincipaI, except in the case of final maturib; in which case the certificate must be prt.,smtled to ~l~e Issuer ur Agent prior Io payn~ent. 12. In the event tbe Issuer detemm~es pursuant to the Document(s) that beneficial owners of the Bonds shall be able to obtain certificated Bonds, the lssuer or Agent she I notify DTC of the a;'ailability of Bond certificates and shall issue, transfer and excl~.auge Bond certificates in appropriate amounts as required by DTC and others. 13. UTC may determine to discontioue providing its service as securities depository ,Mtb respect to the Bonds at any th'ne by giving reasunable notice to the Issue or Agem /at which dine UTC will confirm with the Issuer or Agent aggregate principal amount c}f the Bonds outstanding) and discharging its responsibilities with respect thereto under applicable law. Under such arcumstances, whenever DTC requests the Issuer and the Agent rd do so, the Agent and the Issuer will cooperate with DTC in taking appropriate action to make available one or more separate certificates evidencing the Bonds to any UTC Participant having Bonds credited to its DTC account. 14. Nothing herein shall be deemed to require the Agent to advance funds on behalf of the tssuen ~. If Ihere is no organization acong as Agen ;Jot the issuer, and \;crt' truly yours. e, Neither DTC nor ,Cede & 0o3 Provides consents With resDecl Io any security. Under its usual procedures. UTC mails an Omnibus Proxy lo the [ssuer as soon as DOSmble atler the record eale. The Omnibus Proxy assigns Cede & Co.'s voting nghls tc lhe record date t,denl;hed in a listing Beached to the Omnibus Proxy). The reqmr~menl to adwse DTC el the record date ~or lne sollc~alion of consenls :s sel lOrth m paragraph 2 of lhe eller. Barnett Banks Trust Comoany, N.A. c. Under Rules oi tr, e Municipal Securmes Rulemakm~ Board relal~ng IO "good dehvery." a mumc~oal secunfies dealer musl oe Received and Acce}:'*ted: THE DEPOSITOR5.' TRUST COMPANY : Undcrwril 0r Und c,'wrilcr'.- Sou n~.cl SCHEDULE A (Describe Issue) $30,870,000 Current Interest Bonds Amount Maturity $ 20,000 20,000 20,000 20,000 25,000 25, 0~00 25,000 30,0~00 35,000 35,0D0 4 , 665,000 8,060,O~00 17,890, 000 1992 1993 1994 1995 1996 t997 1998 1999 2000 2001 2007 20i0 2015 6. 100 6.250 6. 400 6..550 6.700 6. 800 6.900 6.950 7. 000 7. 050 7.300 7.250 7. 400 Original Principal Amount $594,732.60 550,676.70 509,840.10 472,090.50 437,075.10 $2,564,415 Capital Accreted Amount at Maturity $4,410,000 4,410,000 4,410,000 4,410,000 4,410~000 Appreciation Bonds Maturity 2016 2017 2018 2019 2020 Approximate 7.850 7.650 7.850 7.850 7.850 4711M The Insurance Policy will insure payment only on stated maturity dates and sinking fund installment dates, in the case of principal, and on stated dates for payment, in the case of interest. It will not insure payment on acceleration, as a result of a call for redemption (other than sinking fund redemption) or as a result of any other advancement of maturity, nor will it insure the payment of any redemption, prepayment or accelerasion premium or any risk other than Nonpayment. In the event Of any ~cceteration of the principal of the 1990 Bonds, the payments insured will be made at such times and in such amounts as would have been made had there not been an acceleration. The Insurance Policy will not insure against nonpayment of principal or interest caused by the insolvency or neg!igenceof any Trustee or Paying Agent, if any. If the 1990Bonds become ~bject to mandatory redemption and insufficient funds ate available for redemption of all outstanding 1990 Bonds, A~iBAC Indemnity will remai~ obligated to payprincipal of and interest on Quts~anding 1990 Bonds on the o~iginaliy schedule~ interest and .princiPal payment dates, including mand~tor~ sinking fund redemption dates. In the event the Paying Agent ~as notice that any payment of principal of or interest on a 1990 Bond which has become Due for Payment and which is made to a registered owner thereof by or on behalf of the City h~s been deemed a preferential transfer and theretofore recovered from such registered~ owner pursuant to the United States Bankruptcy Code in accordance with a final, nonappealable order of a court of competent jurisdiction, such registered owner will be entitled, to payment from A~BAC Indemnity to the extent of such recovery if sufficient funds are not otherwise available. If it becomes necessary to call upon the Insurance Policy, payment~of principal~.~equ~res~ surrender of 1990 Bonds to the Insurance Trustee together with an appropriate instrument of assignment so as to permit ownership of such 1990 Bonds to be registered in the name of AMBAC Indemnity. Payment of interest pursuant to the Insurance Policy requires proof of entitlement to interest payments and an appropriate assignment of the registered o~rner's right to payment to AMBAC Indemnity. Upon payment of the insurance 'benefits, AMBAC Indemnity will become the owner of the 1990 Bond, appurtenant coupon, if any, or right to payment of principal or interest on such 1990 Bond and will be fully subrogated to the surrendering registered owner's right to payment. ~ For so long as DTC or its nominee, Cede & Co., is the registe'red owner of the 1990 Bonds, the Insurance Trustee shall disburse principal and interest to a Beneficial Owner only upon evidence satisfactory to the Insurance Trustee and AMBAC Indemnity that the ownership interest of the Beneficial Owner in the right to paymen5 of such principal and interest has been effectively Lransferred to AMBAC Indemnity on the books maintained f~r such purpose. A~BAC Indemnity shall be fully subrogated to al~ of the 12 registered owner's rights to payment to the extent of the insurance disbursements so made. AMBAC Indemnity is a Wisconsin-domiciled stock insurance ~ompany, regulated by the Insurance Department of the State of Wisconsin, and licensed to do business in various states, with ~-~dmitted assets (unaudited) of approximattey $1,218,000,000 and statutory capital (unaudited) of approximately $737,000,000 as of June 30, 1990. Statutory capital consists of AMBAC Indemnity' s statutory contingency reserve and policyholders' surplus. AMBAC Indemnity is a wholly owned subsidiary of AMBAC, Inc. , a financial holding company which is wholly-owned by Citibank, N~A. Neither AMBAC Inc. nor its shareholders are obligated to pay the debts of or claims against AMBAC Indemnity. Standard & Poor's Corporation and Moody's Investors Service, Inc. have assigned their ratings of ,AAA" and "Aaa", respectively, to the claims paying ability of AMBAC Indemnity. Citicorp, the parent company of Citibank, N.A., issued a press release on March 5, 1990 stating that as part of Citicorp's effort to strengthen its capital base, it is considering the possible sale of AMBAC Indemnity. Both Moody's Investors Service Inc. and Standard & Poor's Corporation have publicly stated that the possible sale of AMBAC Indemnity will not impact its claims-paying rating of Aaa and AAA, respectively. Any sale of AMBAC Indemnity would b~-subject to the prior approval of the ~ Wisconsin Insurance Department. Furthermore, Citicorp has stated that "AMBAC...will not be sold unless an attractive proposal is made by a high quality, well-capitalized institution with a long- term perspective on its investment fn AMBAC." Copies of AMBAC Indemnity's financial statements prepared in accordance with statutory accounting standards are available from AMBAC Indemnity. The address of AMBAC Indemnity' s administrative ~ offices and its telephone number are O~e-~State Street Plaza, 17th Floor, New York, New York, 10004 and (212) 668-0340. AMBAC Indemnity has entered into quota share reinsurance agreements under which a percentage of the insurance underwritten pursuant to certain municipal bond insurance programs of AMBAC Indemnity has been and will be assumed by a number of foreign and domestic unaffiliated reinsurers. Ai~BAC Indemnity has obtained a ruling from the Internal Revenue Service to the effect that the insuring of an obligation by A~BAC Indemnity will not affect the treatment for federal income tax purposes of interest on such obligation and that insurance proceeds representing maturing interest paid by AMBAC Indemnity under policy provision substantially identical to those contained in its municipal bond insurance policy shall be treated for federal incom~ tax purposes in the same manner as if such payments were made by the issuer of the obligations. AMBAC Indemnity makes no representation regarding the 1990 ~Bonds or the advisability of investing in the 1990 Bonds and makes no representation regarding, nor has it participated in the preparation of, the Official Statement other than the information 13 supplied by AMBAC Indemnity and presented under the heading "Municipal Bond Insurance". Flow of Funds Ail moneys, fees, charges and other income received by the City or accrued to the City in connection with or as a result of its ownership or operation of the System, including any income derived from the sale of water produced, treated or distributed by the System, or the collection, transmission, treatment or disposal of sewage by the System, any proceeds of use and occupancy insurance on the or any part thereof and income from investmen Resolution~ but excluding Impact Fees, payments on assessments for water and sewer improvements, in aid, connection charges and income Construction Fund and the Impact Fee Fund "Revenues") will be collected by the On or before the 20th day of each month the Mayor and the City Manager shall withdraw an amount equal to the balance remaining in the Revenue Fund on the ~last day of the preceding month, less an amount (to be held for the payment of Current Expenses) equal to the amount necessarY for Current Expenses during th~ next ensuing month as determined by the City Manager, and deposit the sum so withdrawn to the credit of the following Accounts or Funds in the following order: (a) to the credit of the Bond Service Account~ an amount, which together with the amount, if any, concurrently deposited therein from the Impact Fee Fund, will equal one-sixth (1/6th) of the amount of interest payable on the Bonds of each Series on the interest payment date next succeeding (less any amount received as capitalized or accrued interest from the proceeds of any Bonds which is available for such interest payment) and an amount, which, together with the amount, if any, concurrently deposited therein ~rom the Impact Fee Fund, will equal one-twelfth (t/12th) of the next maturing installment of principal on all Serial Bonds then outstanding; provided, however, that in each month intervening between the date of delivery of the 1990 Bonds, any Additional Bonds or any Refunding Bonds (beginning with the month following the month in which such delivery takes place) and the next succeeding interest payment date and the next succeeding principal payment date, respectively, the amount described in this subparagraph shall be that amount whichwhen multiplied by the number of deposits to the credit of the Bond Service Account required to be made during such respective periods ~s provided above will equal t~e amounts required (in addition to any amounts received Es 14 accrued interest or capitalized interest from the proceeds of such Bonds) for such next succeeding interest payment and next maturing installment of principal, respectively; (b) to the credit of the Mandatory Redemption Account an amount, which, together with the amount, if any, concurrently deposited therein from the Impac5 Fee Fund, will equal one-twelfth (1/12th) of the principal amount of Mandatory Term Bonds of each Series then outstanding required to be retired, in satisfaction of the ~andatoryAmortization Requirements, if any, for such Bond Year, plus the premiums, if any, on the principal amount of Mandatory Term Bonds which would be payable in such Bond Year if such principal amount of Mandatory Term Bonds were to be redeemed prior to their respective maturities from moneys held for the credit of the Sinking Fund; (c) with the Fiscal Agent to the credit of the Reserve Account, such amount, if any, of any balance remaining after making ~he deposit described in clauses (a) and (b) above (or the entire balance if less than the required amount) which, together with the amount, if any, concurrently deposited therein from the Impact Fee Fund will be required to make the amount deposited in such month to the credit of the Reserve Account equal to the Reserve Account Deposit Requirement for such month; (d} to the credit of the Loan Repayment Fund, such amount, if any, of any balance remaining after making the deposits described in clauses (a), (b) and (c) above (or the entire balance if less'than the required amount) which, together with the amount, if any, concurrently deposited therein from the Impact Fee Fund will be required to make the amount deposited therein equal to the Monthly State Loan Requirement, if any; (e) to the credit of the Renewal and Replacement Fund, such amount, if any, of any balance remaining after making the deposits described in clauses (a), (b), (c) and (d) above (or the entire balance if less than the required amount) as may be required to make the amount deposited in such Fiscal Year to the credit of the Renewal and Replacement Fund equal tothe amount, if any, recommended by the Consulting Engineers pursuant to the Resolution~ to be deposited to the credit of said Fund during such Fiscal Year; and (f) to the credit of the General Reserve Fund, the balance, if any, remaining after making the deposits described in clauses (a), (b), (c), (d) and (e) above. If the amount deposited in any month ~o the credit of any of the Accounts or Funds mentioned in (a) to (d), inclusive, above shall be less than the amount required to be deposited therein 15 under the Resolution, the requirement therefor shall nevertheless be cumulative and the amount of any deficiency in any month shall be added to the amount otherwise required to be deposited in each month thereafter until such time as all such deficiencies have been made up. Any moneys received by the City from payments on special assessments for water and sewer improvements and contributions in aid shall be deposited to the credit of the General Reserve Fund. Issuance of Additional Bonds The City may issue Additional Bonds payable and secured equally and ratably with the 1990 Bonds and 1985 Bonds provided that, in addition to compliance with certain other conditions set forth in the Resolution, a certificate of the City's Director of Finance, and approved by the Consulting Engineers, together with a certificate s~gned by the Consulting Engineers, is theretofore filed with theCity Clerk. The certificate signed by the ~irector of Finance (and approved by the Consulting Engineers) must set forth (a) the amount of Net Revenues for any four consecutive quarters during the six quarters preceding the issuance of such ~dditiona~ Bonds (hereinafter refe~ed toa~ the "four quarter test period"), as adjusted by (i) in Case the Rates and C~arges have been revised and such revised Rates and Charges have become effective prior to the delivery of the Additional Bonds, the additional amount of Net Revenues which would have been realized during the four quarter test period if such ~ates and Charges had been in effect for the entire four quarter test period, and (ii) in case an e×istin~ ~atersystem, sewer syste~ or water and sewer system ~s to be acquired with theproceeds of the Additional Bonds, the additional amount Of Net Revenues that would-have been realized during the four quarter test period if such acquired water and/or sewer system had been part of the System during the entire four quarter test period, and (b) the respective amounts of Principal and Interest Requirements for each Bond Year after delivery of the Additional Bonds, i~cluding the Principal and Interest Requirements of the proposed Additional Bonds. The certificate to be signed by the Consulting Engineers must set forth (a) the estimated date on which Improvements to be finance~ by the Additional Bonds will be placed ~n operation and (b) an estimate of the additional Net Revenues to be received on account of suchImprovements in the first full Bond Year following the Bond Year in which such Improvements are estimated to beplaced in operation. In addition, the terms of each of the following tests must be met: Test 1: The Net Revenues~ as determined in the manner referred to in the certificates of the Director 16 of Finance and the Consulting Engineer described above, for the four quarter test period mu~t equal at least 135% of the maximum Principal and Interest Requirement for all Outstanding Bonds and the Additional Bonds for which such test is applied for any Bond Year thereafter. Test 2. The Net Revenues, as determined in the manner referred to in the Director of Finance certificate and Consulting Engineer certificate described above, for the four quarter test period must, exclusive of the adjustment referred to in clause (b) of the Consulting Engineer certificate described above, equal at least 115% of the maximum Principal and Interest Requirement for any Bond Year after the issuance of such Additional Bonds. THE 1990 PROJECT The T990 Project consists of th~ acquisition and construction of improvements to the City's existing water treatment and distribution facilities and the wastewater collection and disposal/~-~ facilities in the amounts estimated in the Engineer's ~~i~ contained in Appendix D hereto. The total cost of all such improvements has been estimated by the City's consulting engineers to be approximately $29,693,000. The consulting engineers have estimated that the improvements to the water treatment and distribution system will account for approximately 79% of such ~sts and the improvements to the wastewater collection and [sposal system will account for approximately 21% of such costs. ~.ater Treatment and Distribution Facilities Additions to the City's water treatment and distribution systems will be funded from proceeds of the 1990 Bonds and Impact Fees. These costs include (a) replacement of softening basin internal mechanisms and installation of a data acquisition and control system at the City's. existing east water treatment plant; (b) consnruction of a 4 million gallons per day (mgd) membrane softening water treatment plant, expandable to 16 mgd, together with a companion date acquisition and control system, on a site owned by the City located in the western part of the service area; (c) installation of pumps, connective piping and controls for four new wells to supply raw water for the new water treatment plant; and (d) construction of finished watermains for connecting the new waEer treatment plant to the water distribution system and for increasing of certain segments of the water distribution system. The aggregate of the anticipated costs of completion of the ~mprovements to the water treatment and distribution system is approximately $23,331,000 17 Wastewater Facilities In 1974, the City entered into an interlocal agreement with the adjacent City of Detray Beach, Florida (the "Interlocal Agreement") for the provision of wastewater treatment, sludge disposal and effluent disposal on a regional level. Th~ Interlocal Agreement creates a legal entity known as the South Central Regional Wastewater Treatment and Disposal Board (the "Regional Board"), composed of the five members of the respective City Commissions of the two cities, who operate the plant through an executive director. Pursuant to the Interlocal Agreement, the two cities own a wastewater treatment and disposal facility located within the corporate limits of the City of Delray Beach. The improvements constituting the wastewater improvements portion of the 1990 Project will provide mitigation of odor at the South Central Regional Wastewater Treatment Plant, as well as generally improving the collection/transmission system reliability and capacity. Major improvements of the wastewater treatment plant to be funded by the 1990 Bonds include the City's share of the cost of installation of replacement pumps at four existing wastewater pumping stations; rehabilitation of master wastewater pumping stations to repair the effects of corrosion; and expansion of the City's existing radio telemetry system for monitoring and controlling all wastewater pumping stations. These improvements are designed to increase the plant's total capacity to 24 mgd (annual average day basis), thereby allowing 12 mgd capacity for the City, which is sufficient to satisfy the City's projected wastewater flows through the year 2000. Contracts have been awarded for the construction of all improvements at the wastewater plant totalling $10,935,000. The cost of these improvements, including contingencies, land, engineering during construction, and resident project services, is estimated at $12,944,000. The two cities will share the cost of these improvements equally, making the City's share $6,472,000. The City estimates that its 50% share of the total costs of the improvements at the facility, together with the cost of demolition of its abandoned wastewater treatment plant and other related improvements, is approximately $7.5 million. Of that amount, the City will pay $5,000,000 from the p~oceeds of the 1990 Bonds and $2.5 million~be funded from Impact Fees. 18 ESTIHATED SOURCES AND USES OF FUNDS ~ OUI%CES: ~rincipal Amount of Bonds 'Accrued Interest TOTAL SOURCES: USES: Construction Fund Reserve Account Costs of Issuance Accrued Interest TOTAL USES: (1) (1) Includes underwriters' discount, bond insurance premium and other costs of issuance. OTHER CAPITAL PROJECTS Aquifer storage and recovery (ASR) of treated water is planned by the City as a potential alternative to drilling additional shallow aquifer wells. The ASR wells are planned to be located on the East Water Treatment Plant (WTP) site and are estimated to provide an additional 2 to 3 mgd of peak day capacity. They can _he supplemented with recharge wells to retard saltwater intrusion .n existing wells. The ASR technology can maximize use of the ;otal existing plant capacity on a year-round basis, enhance water &uality, and augment available shallow acquifer well flows under drought conditions. Completion of ASR and shallow aquifer recharge facilities is planned to be funded by sources of revenue other than the proceeds from the 199'0 Bonds, and is scheduled to be operational in 1991. The City has begun developln~ the West Well Field by successfully drilling 10 production wells, which was paid with funds other than the 1990 Bonds. The surficial aquifer is the source of these wells, which will supply raw water to the proposed West WTP, a membrane softening plant that is scheduled to provide an initial treatment capacity of 4 mgd by June 1992. As the West WTP is expanded beyond initial capacity to 8 mgd by the year 2080 and to an ultimate design capacity of 16 mgd by buildout, the remainder of the newly ~rilled wells in the West Well Field Will be fully developed and ultimately augmented by supply from the proposed Nickles Road Well Field. Improvements financed outside of the 1990 Project are underway to allow the East WTP to operate at a treatment capacity of 20.5 mgd by mid-1991. A data acquisition and control system, which is 19 included within the 1990 Project, will link the East WTP to the new plant to be constructed on the west. side of the City. To prepare for anticipated regulatory guidelines, the City has conducted test programs to investigate two alternative disinfectants chlorine dioxide and ozone. The preliminary timetable of these regulations is estimated to require an alternative system to be on line by the first quarter of 1994. The City proposed to purchase 5 acres south of the East WTP to be available for new facilities that may be needed to meet future drinking Water regulations. Some of this land will serve as a plant site buffer area for neighboring residents. This land purchase will be funded from sources other than the 1990 Bonds. The new membrane softening WTP that is being constructed as part of the 3990 Project is planned to have an ultimate capacity of 16 mgd and willsupply the p~rtion of the 36-mgd buildout deman~ not me~ by t~e East W~P.(which is being uprated to 20.5 mgd as part of the Project). Additional membrane softening trains and associated equipment.will be constructed in 1.33-mgd increments as needed to meet future demandS. A data acquisition and control system will also be implemented as part of the 1990 Project to link together the controls and operating data bases of the East WTP and West WTP~ Other future water system improvements through the year 2000 include construction ofmains needed for distribution system reinforcement and looping, development, extensions to areas currently served by private wells; replacement of old small- diameterpiping; and modifications to b~oster pump stations. Such other reinforcement and looping will be required to be completed in 1994 and 1995. The cost of mains needed to supply new development will be borne by the developers. New water storage facilities will be required for the West WTP to meet regulatory guidelines of the Florida Department of Environmental Regulation (FDER). A 1.0-mg storage tank is planned for the west WTP after the year 2000. Additional storage is not planned for the East WTP, which is served by a 1.6-mg clearwell and a 500,000-gallon elevated storage tank. Currently flows for the City's wastewater system are approximately 7 mgd on an annual average day basis and 8 mgd on a maximu~month average day basis. By the year 2000, these flows are expected to be 11 mg and 13 mgd, respectively. Buildout flows are projected to increase approximately 35 percent over year 2000 conditions. By the year 2000, new transmission mains, lift station improvements, and further rehabilitation of control systems will be required. 20 DEBT SERVICE REQUIREMENTS Set forth below are the amounts of principal, including mandatory redemption of Term Bonds, and interes~ coming due on the 1990 Bonds and the total debt service on the 1990 Bonds and the 1985 Bonds in the bond years indicated: Aggre- Total Debt Total Debt gate Bond Year Ending 1990 Bond 1990 Bond Ssrvice on Service on Debt November 1 Principal tnteres~ 1990 Bonds 1985 Bonds Servic 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 THE CITY The City is a municipal corporation organized and existing under the laws of the State of Florida. The City is located in Palm Beach County-approximately 13 miles south of West Palm Beach and 30 miles north of Fort Lauderdale. The City is governed by a Commission-Manager form of government and employs both a full-time 21 City of Boynton Beach, FLorida Water and Sewer Utility Revenue Bonds, Series 1990 CID * CAB Structure, 10/10/90 Pricing Con~ined Debt Service ..... Series 1985 .......... Series 1990 ..... Date Principal Interest Principal Interest Total Annual 10/24/90 05/01/91 559,170.00 11/01/9~ 1,005,000.00 559,170.00 05/01/92 524,~97.50 11/01/92 1~0~000.00 524,49?.50 05/01/93 486,335.00 11/01/'93 1 ~150;000.00 05/01/94 ,444 ,~0· O0 11/01/94 1,235,000.00 Z~-.4,360.80 05/01~ 398,047.50 11/01/95 1,330,000.00 398, 047.50 05/01/~ 346,~2.50 11,/01Y96 1,4~0,000.00 346¥842;50 05/01Y97 290,,~5 ?.50 11/0~/97 1,545,000.00 Z90;357.50 05/01/98 ~27~785: 00 11/01/98 1,670,000.00 227,785.00 05/01/99 158~897.50 ~1/01Z99 1,805,000.00 ~56~ 89~. 50 05/01/2000 8~,087.50 1,955,000.00 0;00 517;756.25 1,60~,243. ~5 ~66,097.50 1,658,902~50 0~00 ~22,386.25 1,?02,613·75 0-00 382,393.75 1,742,606~25 0-00 349, 180.00 1,775,820.00 11 11~ 11 25,000.00 25,000.00 2~,000.00 30,000.00 35,000.00 35,000.00 ~5,000.00 40,000.00 40,000.00 45,000,00 2,175,000.00 2,330,000.00 2,500,000.00 2,685,000.00 2,875,000.00 3,085,000.00 3,315,000.00 3,560,000.00 3,825,000.00 4,105,000.00 594,732.60 550,676.70 509,8z~0.10 1,321,785.2I 1,880,955.21 0.00 1,132,958~75 2,697,128.75 4,578,083.96 1,132,958.75 1,657,456.25 20,000.00 1,132,958.75 2,752,456.25 4,400,912.50 1,t32,348.75 1,618,683.75 20,000.00 1,132,348.75 2~ 788~ 68~. 75 1~131,723,75 1~576~ 083.~ 20~000.00 1,131~723.~ 2~831.083.75 4,407,167.50 I~ 131,083.75 1~529~ 131 .~_5 20,000.00 1,131~083.75 2~879~131 25 4,408,26Z.50 1,130,428.75 1~477,271.25 1,130~ 428:~"5 2,932,271.25 4~409,542.50 1;129~591.25 1~419;948.75 1,129,591 ~25 2;9~2~ 948.75 4~409,897.50 I~ 128,741.25 I~356~526.25 1,128,741.25 3751,526.25 4,408,052.50 1~ 127;878.75 1,2~,776,25 1,127~87~5 ~ 1~1 ~77~,:25 4,4~,552.50 1, i26~836.~5 1,126,836.25 3~1~,~:~.75 4,409,847.50 1~ 125~611~25 1 ~125,611L.~5 1, T25~611.25 3;285~611.25 4,411,222.50 1,1~4,3~50 1 · ~24, 3~.50 4,408,755.00 4·411·200. O0 4,408,280.00 4,410,360.00 4,412,075.00 4~408,300.00 4,408,210.00 3;548~,480~ ~0 4,411,960.00 .7~5~148~ 3~1·~48.~ 4,407,29?.50 4,408,860.00 4,410,570.00 4~5 4,410,260.00 4,411,820.00 4,408,770.00 4,410,000. O0 0.00 3~ 859,3~=30 4,410,000.~ 4,410,000.(30 3,900,159~0 4,410,;0002~0 4,410,000.00 0.~00 O.O0 472,090.50 3,937, 90~5D 4,410,000.~0 4,410,000.00 437,075.10 3,972,924.90 4,410,000.00 4,410,000.00 Total 16,337,813.75 15,525,946.25 33,434,415.00 67,156~451~46 132,454,626.4~ 132,454,626~46 County, which primarily lie to the west of current City limits. Current City policy is to limit annexation to the west to areas east of Lawrence Road. Because all of the areas that may be annexed are already encompassed by the water and wastewater service areas and connected to the water and wastewater systems, annexation is not expected to have an effect on water and wastewater service demands. The City's water and sewer utilities department is divided administratively into _nine divisions, consisting of an administrative division~and eight operating divisions. Total staff for the department was 96 as of June, 1990 and includes two professional engineers, 15 certified water treatment plant operators, 6 certified system operators and 13 certified field technicians. This staff is responsible for the operation and maintenance of the water supply, treatment, distribution and storage facilities, as well as wastewater collection~, pumping and transmission. Wastewater treatment facilities are operated and maintained under the South Central Regional Wastewater Treatment and Disposal Board. As a means of maintaining employee satisfaction and good service and utility performance, quality circles have been instituted within the last year. Eight such groups are currently functioning. The utility also supports an ongoing safety training program for its staff. Water system Peak day demand projections for 1989 had been estimated in the City's "Water and Wastewater Master Plan (1989)" prepared by CH2M Hill in February 1989, to. reach approximately 17.5 mgd. The current permitted capacity of the existing water treatment plant, 17.5 mgd, is beyond the capacity of the existing water supply source. However, due to drought conditions and water use restrictions imposed by the South Florida Water Management District, maximum day demand in 1989 only reached 14.5 mgd. It is anticipated that with the lifting of drought imposed restrictions the recent downturn in demand patterns will reverse and more closely approximate the projected levels of the master plan. Recently, the City has adopted an increasing inverted rate structure as part of planned rate increases. This type of rate structure can affect demand. Historical and projected demands for the City's water service area exclusive of drought or rate impacts are set forth in the Consulting Engineer's report contained in Appendix D hereto and shows that projected peak day demands for the year 1995 and buildout are 24 and 36 mgd, respectively. Raw water supply for the City's potable water system is groundwater drawn from the surficial aquifer. The East Well Field, which comprises 20 active wells iN four separate well fields, supplies raw water to the City's East WTP. Recent data from the City indicate a production loss in well field 5. The City is in the process of rehabilitating these wells to recover capacity under 23 the direction of Geraghty and Miller, Inc., consulting engineers. In 1989, the City completedconstructiOn to provide additional East Well Field capacity, including replacement of five wells with higher yielding wells. The maximum pumping capacity o£~the existing wells has been estimated by the City at approximatelyl8 mgd. However, because the projected peak day water demand is 20.5 mgd in 1991, the lost flow in well field 5 must be recovered or additional supply must be obtained to avoid a supply shortfall. The existing East WTP has a permitted capacity of 17.5 mgd and uses lime softening, filtration and chlorination to produce a finished water that~ complies with ail current state primary and secondary drinking water standards. However, anticipated regulations that will be promulgated in response to the 1986 Safe Drinking WaterAct (SDWA) Amendments are likely to restrict the current use of chlorine combined with naturally occurring-ammonia for primary disinfection. See the caption "Other capital Projects" above for a discussion of the City's preparation for such anticipated regulations. A computerized hydraulic model used to evaluate the existing distribution system in all major sections of.the service area for the estimated 1988 peak hour demand conditions of approximately 27 mgd. with the completion in 1989 of the 3mg storage tank/booster pump station near the L-20 Canal, existing distribution facilities are adequate until the first phase of the West WTP is placed in service. With the addition of the 3 mg storage tank in 1989, useful water storage capacity will be 5.5 mg, which is more than su. fficient to accommodate the projected buildout storage volume of 5 mg. See, howe~r, the caption "Other Capital Projects" above for a discussion of the new storage facilities that will be required for the West WTP to meet regulatory guidelines of the FDER. Wastewater System Current and projected wastewater flows for the City's wastewater system are set forth in the Consulting Engineer's report contained in Appendix D hereto. Current flows are approximately 7 mgd on an annual average day basis and 8.mgd on a maximum month basis. By the year 2000, these flows are expected to be 11 and 13 mgd, respectively. Buildout flows are projected to increase approximately 35 percent over year 2000 conditions. The existing wastewater collection and transmission system consists of approximately 175 miles of gravity sewer, 45 miles of force main, and 238 pump stations. Computer hydraulic modeling of the force main system conducted in 1988 indicated that force mains are adequately sized for future flows. 24 Wastewater treatment and disposal for the City's service area is administered by the Regional Board (as previously defined herein), which was created in 1974 to provide wastewater treatment, sludge disposal and effluent disposal services jointly to the cities of Boynton Beach and Delray Beach. The wastewater treatment plant has a current rated capacity of 24.0. mgd (annual average day basis), except for the effluent p~mp station, which has a c~rrent rated.capacity of 18.1 mgd ~(annual average day basis). The plant's capacity is allocated equally between t~e two cities. The plant uses the conventional activated sludg~ process and discharges treated effi~ent to the Atlantic Ocean ~ia a 36,, diameter effluent forcemain tha~ terminates in a 30" diameter effluent ocean outfall line. Waste sludge is thickened, stab~iized with lime, and land- spread on citrus groves by a ~0ntract ~auler.~ ~a~or improvements at the plant as part of the 1990 Project will overall plant capacity to 24.0 mgd (annual average day basis)/ / [Remainder of this page/is intentionally blank] 25 WATER ~ SEWER R~TES ~ IMPACT FEES Description of Rate Analysis .... The methods used in developing the City's water and sewer utility rates a6~here to general accepted methodologies, policies and procedures and result in a corresponding rate structure that generates sufficient revenues to maintain a self-supporting utility. The rates do not unduly discriminate toward any class of customer. Revenue requirements .are often unique to a given utility. In all cases, conformance to bond covenants and regulatory constraints provides one measure of revenue sufficiency. Also, it is the City's goal with respect to the System to avoid operating lossesmw. The~co~on measure for this is cash flow. Excluded from ~~ through debt such as the are generally included, some capital outlays. The System cash flow, which includes a deduction for depreciation. This measure allows for generation of funds to replace plant and equipment. Correspondingly, the City does Utilize a depreciation funding practice. The water ~nd wastewater activities, currently commingled within the same ~fund for budgeting p~lrposes, were treated as two distinct and separate funds for analysis. In so doing, a proper matching of revenues ~and~ expe~di~ures was developed for both water and wastewater activities-. Rate equity was achieved by developing elements of the rate structure on the basis of cost allocation results. This is particularly important in achieving equity within customer classes for the water utility, where fixed charges were analyzed and based on allocation of costs to customer classes and meter sizes. For the was=ewater utility, the provision of transmission and treatment by the Regional Board, simplifies the cost of service analysis, with cost allocated on a customer or volume basis. Moreover, rate structure alternatives are somewhat limited, due to wastewater rate calculations being based on water consumption. A separate rate structure was not considered based on increased administrative and customer billing costs associated with devetopmng separate rate structures for water and wastewater utility activities. Revenue requirements for the entire System for the year 1990 were calculated to result in a 17.27% increase over previous rates. Additional increases for subsequent years will result in cumulative increases totalling 86.34% by the year 1995. The cost of service analysis indicated that a greater portion of this increase should be shifted to the commercial customers. Potential and anticipated growth in the customers base ~n excess of growth assumptions could reduce the need for future increases. 26 The rates indicated below wer~ adapted by City Ordinance No. 90-35 on September 18, 1990 and will become effective October 1, 1990. By design this water conservation inverted rate structure ~is lacking in cost allocation consideration. However, in the State of Florida many municipal utilities are required by permit condition of the water management districts to adopt such rate ~tructures. The adopted rate meets the equity criteria and revenues will be sufficient to support the increased revenue requirements. Water Rates POTABLE WATER RATE SCHEDULE (1) IN CITY/RESIDENTIAL FOR FISCAL YEAR ENDED SEPTEMBER 30, 1991 1992 1993 1994 1995 Base Charge $5.00 $5.55 $6.10 $6.65 $7.20 3001-6000 gal. 1.38 1.45 1.51 1.58 1.65 6001-9,000 gal. 1.46 1.53 1.60 1.66 1.73 9,001-12,000 gal. 1.56 1.62 1.68 1.75 1.82 12,001-15,000 gal. 1.65 1.72 1.78 1.85 1.92 15,001-25,000 gal. 1.75 1.83 1.90 1.95 2.03 25,001-50,000 gal. 1.80 1.95 2.01 2.08 2.15 50,001-75,000 gal. 2.01 2.08 2.14 2.21 .. 2.28 over 75,000 gal. 2.15 2.22 2.29 2.35 2.42 OUTSIDE CITY/RESIDENTIAL FOR FISCA~ YEAR ENDED SEPTF~MBER 30, 1991 1992 1993 1994 1995 $6.94 $7.63 $8.31 $9.00 1.81 1.90 1.98 2.06 1.91 1.99 2.08 2.18 2.02 2.11 2.19 2.27 2.15 2.23 2.32 2.40 2.28 2.37 2.45 2.54 2.43 2.52 2.60 2.68 2.60 2.68 2.77 2.85 2.77 2.82 2.94 3.03 Base Charge $6.25 3001-6000 gal. 1.73 6001-9,000 gal. 1.83 9,001-12,000 gal. 1.94 12,001-15,000 gal. 2.06 15,001-25,000 gal. 2.20 25,001-50,000 gal. 2.35 50,001-75,000 gal. 2.51 over 75,000 gal. 2.69 (t) In dollars per 1000 gallons 27 IN CtTY/CO~ERCIAL FOR PiS~AL YEAR ENDED SEPTEMBER 30, 1991 1992 1993 ~994 ~995 Base Charge $8.00 $9.99 $9.76 $10.64 $11.52 3001-6000 gal. 1.38 1.45 1.51 1.58 1.65 6001--9,000 gal. 1.46 1.53 1.60 1.66 1.73 9,001-12,000 gal. 1.55 1.62 1.69 1.75 1.82 12,001-15,000 gal. 1.65 1.72 1.78 1.85 1.92 15,001-25,000 gal. 1.76 1.83 1.90 1.96 2.03 25,001-50,000 gal. 1.90 1.95 2.01 2.06 2.15 50,.001-75,000 gal. 2.01 2.06 2.14 2.21 2.28 over 75,000 gal. 2.15 2.22 2.28 2.35 2.42 OUTSIDE CITY/COMMERCIAL FOR FISCAL YEAR ENDED SEPTEMBER 39, 1991 1992 1993 1994 1995 Base Charge $10.00 $11.10 $12.20 $13.30 $14.40 3001-6000 gal. 1.73 1.81 1.89 1.98 2.05 600t-9~000 gal. 1.83 1.91 1.99 2.08 2.16 9,O01-12,000 gal. 1.94 2.02 2.11 2.19 2.27 12,001-15;000 gal. 2.06 2.15 2.23 2.32 2.40 15,001-25,000 gal. 2.20 2.28 2.37 2.45 2.54 25,001~50,000 gal. 2.35 2.43 2.52 2.60 2~80 50,001-75,00~ gal. 2.51 2.60 2.68 2.77 2.85 over 75,000 gal. 2.68 2.77 2.86 2.94 3.03 Wastewater Rates FISCAL YEAR WASTEWATER RATE SCHEDULE IN CITY RESIDENTIAL & COMMERCIAL (2) MONTHLY CHARGE BASE CHARGE COMMODITY RATE (1) IF NO METER 1990-1991 $ 7.97 $1.27 $16.45 1991-1992 8.69 1.36 17.48 1992-1993 9.41 1.45 19.58 1993-1994 10.13 1.54 19.74 1994-1995 10.85 1.65 20.98 FISCAL YEAR OUTSIDE CITY RESIDENTIAL & COMMERCIAL BASE CHARGE COFIMODITY RATE (1) (2) MONTKLY CHARGE IF NO METER 1990-1991 $ 9.96 $1.59 $20.55 1991-1992 10.86 1.70 21.84 1992-1993 11.76 1.81 23.21 1993-1994 12.66 1.93 24.67 1994-1995 13.56 2.06 26.20 (1) Dollars per 1,000 gallons (2) Sewer commodity charge for residential customers (in-city or outside city) will be based upon a maximum sewer usage of 7,000 gallons per month. Commercial accounts will be billed sewer charges based upon total water usage. SOURCE: City Finance Department 28 Water Meter Installatlon Fees Water meter connection and deposit charges for the City, are .... ~s fo~tows: [eter Size Inside City Outside City Deposit 3/4" $215.00 $230.00 $ 100.00 1" 270.00 280.00 125.00 I 1/2" 600.00 665.00 250.00 2" 6751.00 740.00 400.00 3" Total cost plus labor and material 750.00 4" Total cost plus labor mild material 1250.00 M" Total cost plus labor and material 2500.00 8" Total cost plus labor and material 4000.00 CONSTRUCTION METERS Penalty for Non-Read/Month Deposit 3/4" $ 25.00 $100.00 1" 25.00 100.00 1 1/2" 25.00 '200°00 2" 25,.00 250.00 Hydrant Meter 150.00 600.00 -~f the customer requests to increase the size of his water meter o a size greater than origianlly installed the customer shall pay _j.nly the differential cost between the original meter and the cost of the new meter for both the connection and deposit charges. Water and seWer Impact Fees Use Cateqory(1) Single Family Water Sewer Inside Outside Inside Outside City City (2) City City (2) One Bedroom $ 833 $1,041 $266 $332 Two Bedroom 1,166 1,457 372 466 Three Bedroom 1,499 1,874 479 599 Four Bedroom 1,666 2,082 532 665 (1) Equivalent dwelling units, which is based on 312 gallons per day (2) 25% over In-City rates 29 The Expansion Projects Percentage has been calculated at the time of issuance of the 1985 Bonds to b~ 43~. The Expansion Projects Percentage of the 1990 Bonds has been calculated to be 65.9%.0 The Expansion Projects Percentage for all Bonds has been calculated HISTORICAL AND PROJECTED REVENUES AND EXPENSES Set forth below is a summary of the Revenues and Current Expenses of the System for Fiscal Years 1987 through 1989 and estimated amounts for Fiscal Year 1990 and debt service coverage. Historical Revenues and current Expenses of the System have been summarizedfrom the General Purpose Financial Statements of the City contained in Append.ix C hereto. Projected Revenues and Current Expenses~ have been summarized based upon the Rate Consultant's Stat~nt contained in Appendix F hereto. Please see Appendices C and F for full discussion of this data. [The rest of this page is intentionally left blank] subject to chan~e/ 30 Historical Revenues, Expenses and Coverage (in Thousands of Dollars) For the~Ei-6--~Ending September 30, Historical(l) 1987 1988 1989 REVENUES Water Sales 4,685 4,932 5,529 Service Charges 47 55 67 Meter Installation 332 230 234 Charges Sewer Service Charges 4,752 5,296 5,570 Interest Income 1,653 2,261 3,063 Miscellaneous 155 150 98 (i) Estimated 1990 6,000 12 200 6,020 2,510 69 Total Revenues OPERATING EXPENSES Utilities Administration 11,624 12,924 14,561 14,811 250 461 509 261 262 217 383 168 212 213 Water Production/ Distribution 1,690 Meter Reading & Services 327 se ice 2,142 Ut~lltyMechanl~s 391 Labe~atory~Se.r3r~ces Utility Construction Non-Budgeted Expense 9 Ba~ ~ebt-Allowance & Misc; 43 General.~Administration 83 Tot~a~ Operating Expenses 5,579 EXCESS OF REVENUES OVER OPEi~ATING EXPENSES 6,045 DEBT SERVICE REQUIREMENTS(2) ~,~ COVERAGE FROM NET REVENUES 2.84 1,752 2,029 2,049 334 .375 488 2,314 2,467 3,060 465 569 829 225 54 4 1 5 24 29 1 50 45 1,363 7,090 8,108 6,524 \~ 3.34 3.82 3.07 IMPACT FEES Water Capital Facilities Charges Sewer Capital Facilities Charges 1,472 798 1,052 823 1,741 1,128 1,370 1,018 Total Impact Fees 3,213 1,926 2,422 1,841 Footnotes: (1) Derived from~ity's financial records/fiscal years ending September 30, 1987 through September 30, 1990. (2) Estimated Principal and Interest Requirement for the 1985 Bonds. 31 For Projected Revenues, Expenses and Coverage(l) (in Thousands of Dollars) the Fiscal Years Ended ~eptember 30, REVENUES Water Sales Sewer Sales Other Revenue 1991 1992 1993 1994 1995 7,748 9,097 10,345 11,818 13,770 6,532 7,087 7,689 8,343 9,052 577 627 680 737 800 Total Revenues OPERATING EXPENSES(2) Water System Wastewater System Other Expenses Renewal 14,856 16,811 18,714 20,898 23,622 4,833 5,152 5,457 6,189 6,520 ~¥ 5,~ 267 5,642 6,028 6,474 6,956 568 577 587 644 646 & Replacement 240 240 240 240 240 Total Operating Expenses 10,908 11,611 12,312 13,547 14,362 EXCESS OF REVENUES OVER OPERATING EXPENSES Interest Income TOTAL NET REVENUE DEBT SERVICE REQUIREMENTS(3) COVERAGE FROM NET REVENUES COVERAGE FROM NET OPERATING REVENUES AND INVESTMENT INCOME 3,949 5,200 2,299 2,456 6,248 7,656 I. ~ 1.7~ 6,402 7,351 9.261 2,624 2,805 2,999 9,026 10,156 12,260 .Footnotes: ~(1)~ Derived from the.Rate_Cqnsul~ant's statement contained in Appendix F hereto ..... - (2) Based on estimates of City's Utilities and Finance Departments. (3) Estimated Principal and Interest Requirements for 1985 Bonds and 1990 Bonds. 32 Moody's Investors Service and Standard & Poor's Corporation have ~Ten the 1990 Bonds ratings of ~"~" and "/~", respectively, with the ~ ierstanding that upon delivery of the 1990 Bonds a policy insuring D~ment when due of the principal of and interest on the 1990 Bonds will be issued by AMBAC Indemnity. Such ratings reflect the v~ews only of the aforesaid credit rating organizations, and an explanation of the significance of these ratings may be obtained only from such rating organizations. There is no assurance that such ratings will continue for time, or that suoh ratings may not be lowered by the respective rating agency if, in its so warrant. Any such downward change or have an adverse effect on the market LEGALITY Certain legal matters in connection with the issuance of the 1990 Bonds are subject to the approval of Moyle, Flanigan, Katz, FitzGerald & Sheehan, P.A., West Palm Beach, Florida, Bond Counsel, whose unqualified approving opinion will beavailable at the time of delivery of the 1990 Bonds. The proposed form-of such opinion of Bond Counsel is attached hereto as Appendix E. Certain~legal matters will be passed upon ~for the City by Josias & Goren, City Attorneys and for the Underwriters by Mayer, Wollett, & Ross~w, Palm Beach Gardens, Florida. TAX EXEMPTION The Internal Revenue Code of 19.86, as amended (the "Code"), provides that the ~nteres~ on state and local governmental bonds will not be includedin the gross income for federal income tax purposes of th~ owner thereof only if certain requirements are met, some of which must be met on a continuing basis, subsequent to the ~ssuance and delivery of the Bonds. Although the~Cityhas~covenanted t~ comply with such requirements, noncompliance with such requirements could cause the interest on the 1990 Bonds to be included in gross income for federal income tax purposes retroactive to the date of issue of the 1990 Bonds regardless of the date on which such noncompliance occurs or is ascertained. Those requirements ~nclude, but are not limited to, provisions which prescribe ~yield and other limits within which the proceeds of the 1990 Bonds and other amounts are to be invested and which require that certain investment earnings on the foregoing be rebated on a periodical basis to the Treasury Department of the United States. In the opinion of Moyte, Flanigan, Katz, FitzGerald & Sheehan, P.A-, West Palm Beach, Florida, Bond Counsel, under existing law, and assuming continuing compliance with the aforementioned covenants, 33 interest on the 1990 Bonds is excluded from gross income of the Owners thereof for federal income tax purposes and is not an 'item of tax preference for purposes of the Federal alternative minimum taxes imposed on individuals and corporations. Certain of the 1990 Bonds are being offered and sold in the initial public offering at an original issue discount ("OID"). CID is the difference between the stated redemption price a~ maturity (generally the face amount of the Current Interest Bonds and the Accreted Amount at maturity of the capital Appreciation Bonds) and the "issue price" of such Bonds. The ,,issue price" of the 1990 Bonds is the respective excluded from gross income for~ result in the co/ federal will accrue over time an Owner owns a gross income purchaser's at which prices a substantial which is ~ which may OID ata constant interest rate [on of 0ID that accrues during the Bond constitutes interest excludable from tax purposes and will increase such in such 1990 Bonds for purposes of determining or loss on the sale or other disposition of such 1990 Bonds. The federal income ~ax consequences of th~ ~urchase, ownership and sale or other disposition of 1990. Bonds which are not p~rchased in the initial offering at the initial offering prices may be determined according to rules which differ from those described above. Owners of 1990 Bonds should consult their o~nadvisors as tothe precise federal income tax and state and local tax consequences of owning and disposing of 1990 Bonds. Although Bond Counsel has ~endered an opinion that interest on the 1990 Bonds is excluded from gross income for federal income tax purposes, purchasers should be aware that beneficial ownership~-Of the 1990 Bonds may result in other collateral federal income tax consequences to certain taxpayers, including property and casualty insurance companies, individual recipients of social Security 'and Railroad Retirement benefits and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry the 1990 Bonds. A summary of certain of these collateral tax consequences follows. Bond Counsel has ~expressed no opinion regarding any such other tax consequences and all Bondholders should consult their own tax advisors as to the applicability and effect. Environmental TaX and Foreiqn Branch ProfitsTax. Interest on 1990 Bonds ownedby corporations will be taken into account (i) for taxable years beginning before 1992in calculating the environmental tax equal to 0.12 percent of a corporation's modified alternative minimum taxable income in excess of a certain amount (generally $2 million) imposed by Section 59A of the Code, and (ii) in determining the foreign branch profits tax imposed by Section 884 of the Code on the dividend equivalent amount of foreign corporations. 34 Alternative Minimum Tax. For taxable years beginning in 1989, certain corporations are required to include in the calculation of alternative minimum taxable income 50% of the excess of each such r '%rporation's "adjusted net book income" (or 75% of the excess of ~djusted current earnings" for ~axabte years beginning after 1989) over Es alternative minimum taxable income (determined withou~ regard to -~is adjustment and the alternative tax net operating loss deduction). The phrases "adjusted net book income, and "adjusted current earnings" for purposes of the foregoing may be required to include certain income, including interest on the 1990 Bonds, without regard to whether such income is taken into account for other federal income tax purposes. S Corporations. Pursuant to Section 1375 of the Code a tax is imposed on the "excess net passive income" of S corporations having subch~pter C earnings and profits and passive investment income in excess of 25% of gross receipts for a taxable year. Interest on the 1990 Bonds would be included in an S corporation's passive investment income. Interest Deduction. (a) Pursuant to Section 265(a) of the Code, no deduction is allowed for interest on indebtedness incurred or continued to purchase or carry obligations, such as the 1990 Bonds, the interest o~ which is wholly exempt from income taxation. (b) In addition, pursuant to Section 265(b) of the Code, in ~he case of certain financial institutions, no deduction is allowable for that portion of the financial institution's interest expense which is allocable to "tax- exempt interest". Interest on. the 1990 Bonds will constitute "tax- exempt interest" for purposes of Section 265(b) of the Code. Insurance ComDanies. Pursuant to Section 832(b)(5) (b) of the Code, ~_~e amount of the otherwise deductible "losses incurred" of insurance companies other than life insurance companies, is reduced by an amount equal to fifteen percent (15%) of the sum of the ~ax-exempt interest received or accrued on obligations acquired after August 7, 1986. For purposes of Section 832(b) "tax-exempt interest" will include interest on the 1990 Bonds. Social Security and Railroad ~Retirement Benefits. Pursuant 5o Section 86-of th~ Cod~, interest which is exempt from tax, including interest on the 1990 Bonds, is included in the calculation of gross income of certain recipients of either monthly benefits under Title II of the Social Security Act or tier-1 railroad retirement benefits. Bond Counsel is also of the opinion that the 1990 Bonds are exempt from all present intangible personal property taxes imposed by the State of Florida. UNDERWRITIN~ The Underwriters, as shown on the cover page hereof, have jointly and severally agreed to purchase the 1990 Bonds from the City a~ an aggregate purchase price of $ q~ ~ ~3~.~ .~plus accrued interest on 35 APPENDIX GENERAL INFORM1%TION CITY OF BOYNTON BEACH, FLORID1% AND PALM BEACH COUNTY, FLORIDi~ APPENDIX A GENERAL INFORMATION CITY OF BOY,TON BEACH, FLORIDA AND PALM BEACH COUNTY, FLORIDA CITY OF BOYNTON BEACH Introduction The City of Boynton Beach, Florida (the "City") is located 13 miles south of West Palm Beach, the county seat of Palm Beach County. T~e City has an area of about 15 square miles, bounded on the east by Lake Worth and the climate the outdoors because of the mild recreational facilities. The general terrain of the City is somewhat higher than that of the other areas of the lower FlOrida east coast. Rolling hills, Lake Worth and the Intracoastal Waterway have added to the desirability of homesites However, there are more than a dozen the City. West Palm Beach, fifteen minutes north, .... ~d Fort minutes south of BoyntonBeach, provide numerous ltural ~er metropolitan areas. city Government The city is a municipal corporation organized and existing under the laws of'the State of Florida. 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 1947, as amended, to issue revenue bonds and ad valorem tax supported bonds. The City is governed by a City Commission (the "Commission") consisting of four members who are elected from districts to serve staggered two-year terms and a mayor elected at large for a two year term. The vice-mayor is chosen by t/~e Commission on an annual basis. The Commission is presently composed of Gene Moore, Mayor; Lee Wische, Vice-Mayor; Bob Olenik, Commissioner; ArlineWeiner, Commissioner; and Lilian Artis, Commissioner. Administration of the operations of the City is carried out by a City Manager who is appointed by the Commission and who is an employee of the A-1 City. The p/sent City M~ager is J. S~ott Miller, who has served in that capacity since January ~,/~990. Mr. Miller, who holds a Bachelor of Arts degree from{ Northern Oh4~ University and a Master of Public Administration ~degree from the University of Pittsburgh, was previously the cir~YManager for the City of Oakland Park, Florida for a period of four years, and prior tc that, was City Manager for the City of Wilton Manors, Florida for a period of three years, prior to that, City Manager of the City of East Detroit, Michigan for a period of three years and prior to that, was Township Managei of Lower Province Township, Valley Forge, Pennsylvania for a period of thre~ years. the City has received the GFOA Award for Distinguished Budget Presentation for its four previous fiscal years (1986-1987, 1987-1988, 1988-1989 and 1989- 1990). A c~py of the 1989 General Purpose Financial Statements is attached to this official Statement as Appendix C. Governmental Services The City provides the full range of municipal services contemplated by statute 'and charter.~' They includepublic safety (police, fire and emergency medical serviceS), planning and zoning, ~sanitation, highways and streets, recreation services, park facilities, publicimprovements, water and sewer, and generaI administrative services. The City currently employs 696 full-time and 108 part-time employees. The new City Hall/Municipal Complex has a total of 57,486 square feet. Thi~ area houses the communications division which handles all emergenc~ dispatching, the risk management o~ffice, data processing department, cit5 manager's office, finance department, ~ city clerk's office, personne? department, recreation and parks administrative offices, citizen servic~ area, purchasing department, building department, code enforcement occupational license,' community redevelopment, planning department, employe~ gym and an employees lounge. Adjoining the complex is the police and fir~ departments. The new ~ity complex has enabled departments which wer~ previously located in various areas of the city to now be centrally locate¢ in one location. The City's police department employs 127 sworn officers and 2~ administrative personnel and operates 73 vehicles available to provid~ coverage for the City. The City ' s fire department has two stations and a third unde~ construction within the corporate limits of the City and utilizes 1 emergency response vehicles with the allo%ted strength of 72 state certifie~ firefighterSo The department has four paramedi~ rescue vehicles equippe~ with life support systems which are maintained by paramedics and emergenc~ medical technicians. A-2 The/City has ~recently remodeled and expanded the library approxi~tety 28,000 ~quare feet, more thah double its nrevious size provlde~a beautiful, modern building in which the cltl=zens of Boyn~on Bea~ e~y library service of a first class nature. The collection offers 105,000 vc .mes currently, and the audio and videotape circulation has been greatly en nced by additional space in a separate area. A puppet stage and "Story StEps" in the children's department are popular new items that attract many youngsters. A drive-up window is one of the innovations and will be operative as soon as staffing is available. The Program Room with a movable dividing wall, provides superior space for existing library-s~onsored programs and is making it possible to expand those offerings. In addition, through various agreements, the City is a member of the Palm Beach County Cooperative and C.O.A.L.A., a Municipal Cooperative Library System, giving citizens access to other libraries in the County and enabling participation in inter-library loan networks that reach to the State level. Medical Facilities Medical services to residents of the City and other residents of the south Palm Beach County area are provided through the 350-bed Bethesda Memorial Hospital, which is located within the corporate limits of the City. Founded in 1959, this hospital is staffed and equipped to provide short-term ~eneral hospital services, including surgical, obstetrical, pediatric, emergency, and medical and surgical intensive care facilities. The hospital currently employs approximately 1,400 persons. The medical staff includes 153 medical doctors and dentists. Bethesda has recently completed its twelfth building program at a cost in excess of $5 million for construction, 4hich provided for the major expansion and relocation of the dietary ~e~rtment and the addition of fifty medical/ surgical beds. The hospital of rs education-vocational opportunities through approved paramedic schools, in uding: the School of Radiologic Technology and clinical affiliations of va~i~us schools of nursing in South Florida. Recreation The City operates a year-round comprehensive community re=reation program, which includes a public beach park complete with picnic, smack and restaurant facilities and which is protected by certified lifeguards. The ~ub 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 uesidents. Located in the City's recreational complex on Ocean Avenue are ~ senior citizen,s shuffle board center, lighted tennis courts, and a small park with playground equipment. The City also maintains approximately twenty neighborhood parks which are well equipped, a neighborhood center and ~wimming 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. A-3 Within the City are two salt wa~er 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 fisherman 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 County, offering year-round play for the area's many golfers including the City's Golf Course. Education Education opportunities in the City are complete with pre-school tc post-graduate programs available. The public schools in the Boynton Beac~ area are a part of the Palm Beach County School Board. In the City ther~ are six public K-5), one middle school (grades 6- 8) and three high schools nearby. In there are four private ol nearby ~which Vocationa and the South Technical Education in the , a part of the County school system. Thi~ center provides part-time and fulltime curriculums in numerous fields o~ trai~inq. Transportation Several major airlines serve the city through the Palm Beacl International Airport, fifteen minutes north of the City in West Palm Beach the Fort Lauderdale-Mollywood International Airport, thirty 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-commercial, non-jet aircraft and facilitie~ include charter service, rental aircraft, flying school and repair and rue3 facilities for small aircraft. Nearby Boca Raton Airport also offers non commercial services. The Port of Palm Beach offers facilities for ocean transportation ant barge transportation on the Intracoastal Waterway. Types of cargo handles at the port include cement, fuel oil, molasses and other general cargo. Passenger rail service to all major cities in Dade, Broward and PaL Beach Counties is provided by the Tri-County Rail System and freight servic is provided by the Seaboard Coast Line Railroad. Bus tra~. sportation i provided by Greyhound BusLines for long distance transportation while loca bus service is provided by the Palm Beach County Transportation Authority This system permits riders to go from Lake Park in the northern portion o the county to Boca Raton, the southernmost City of Palm Beach County. A-4 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 Df the City, provides transportation to the north central part of the State ~nd~ %s far south as the entrance to the Florida Keys. Interstate 95 passes ~h~ ~h the City and is nearing completion and provides close-in alternative ~o~ l-south transportation through the City and throughout other areas of the ~ou~eastern coast of Florida. :ommunications Located within the City are four radio stations, two AM and two FM. Ail 3rincipal television networks are received with broadcast stations in both ffest Palm Beach and Miami. In addition, the City has a public broadcasting, 3adio and television station which is in full operation. The daily lewspapers serving the area are The Palm Beach Post, a morning paper and The Nlm Beach Times, an afternoon Phe Sun Sentinel, a morning paper with [ Palm Beach edition, f ' in Boca Raton. The Miami Herald, t morning paper also with a ~s available in the City and :he ~Patm Beach County area. Also are The Boynton Beach News -ournal and the Boynton Beach Times, both weekly papers published every ?hursday. Iconomy The major segments of the economy of the City are retail and wholesale :fade, real estate and finance, tourism, agriculture, professional services ~nd light manufacturing. The retail trade ~s primarily centered in the trea~s 13 major shopping centers and 15 minor centers or strip centers. The ~o~'~.on Beach Mall, a major regional shopping mall housing five major te~ 'tment stores and i40 specialty shops opened in October, 1985 and has ~ad_=. significant impact on the retail trade portion of the City's economy. A full range of professional services from medial and dental care to egal counsel can be obtained in the City. Finance plays an important role n the community with 13 commercial banks and 13 savings and loan association ~ranch banks. Approximately 57 light industries are located in the City, ~ith manufacturing products ranging from paper processing machinery to ~leCtrical switches. Motorola Corporation has completed construction of a 349,000 square foot tanufacturing facility in the City which employs approximately 1,70~ persons ~ndiis one of the area's largest employers. This facility houses the paging ~roducts division, which manufactures beepers. The City is seeking .ddi~ional light industry which would be compatible with the o~erall plan of :om~unity development. A-5 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. According to the Palm ~each County Agricultural Extension Office, in 1987-1988, the value of ~gricultural crops produced in Palm Beach County totaled in excess of $1 ~illion, with sugar cane and vegetables accounting for over 70% of that total. Other agricultural production in the County include beef, dairy cows, horses, sod, flowers, ornamentals, citrus and tropical fruits, and vegetables. Clubs, organizations, cultural Activities and Churches The City's residents participate in more than 800 local civic clubs and community andphilanthropic, as adults. With the ease Interstate 95 running through the City, all the cultural advantages of the nearby metropolitan areas are readily available. Community theatre, professional theatre productions, concerts, opera, ballet, art galleries, mUseums, lectures and film series are all within thirty minutes driv%ng ~ime of the City. Professional sports .teams are less than an hour aWay in Miami. Little theatre for school-aged children, also offeredthroughthe City'D recreation department, is designed to encourage and develop the talents o~'the area's youth. The City is also the home of several well-kn~wnartists and during March of each year the City and the Chamber of Commerce co-sponsor the. City's G.A.L.A. (Great American Love Affair), a five-day extravaganza featuring artists, exhibits, and _.~ntertainment for all ages. The city has also recently instituted a Community Concert series in an attempt to provide diverse musical entertainment on a regular basis for City residents. Twenty-three churches serve the City and provide worship services for all major denominations. Many of the these churches make their facilities available as activity centers for programs which members and non-members alike attend. Employee Relations At the present time listed below: the ~ity has five contracts with four unions, as Fraternal Order of Police.(FOP) represents the police sergeants. The contract between the City,and FOP is for a period of two years beginning 10-1-89 and ending 9-30-91. Police Benevolent Association (PBA) represents the police officers. The contract between the City and PBA is for a period of two years beginning 10-1-89 and ending 9-30-91. A-6 International Association of Firefighters (IAFF) represents the firefighters. The contract between the City and IAFF is for a period of two years beginning 10-1-89 and ending 9-30-91. International Brotherhood of Firemen & Oilers (IBFO) represents the blue collar workers. The contract between the City and IBFO is for a p~riod of one year beginning 10-1-89 and ending 9-30-90. 5. Fraternal Order of Police represents the police lieutenants. A contract is currently under negotiations. here are no present labor disputes between the City and such unions or etween the City and any non-union employees, affiliations or groups. of this page is intentionally left blank] A-7 Statement of Direct and Overlapping Debt (as of September 30, 1989) )IRECT DEBT ~et General Obligation Bonded Debt. Public Service Tax Revenue . Water & Sewer Utility Revenue (1985)(1). Recreational Facilities Revenue. Totat Direct Debt. General Obliqati~n. $18,433,609 $18,433,609 Non-Self- Supporting Revenue Debt Self- Supporting Revenue Debt $19,012,268 $19,012,268 $35,478,741 7,146,625 $42,625,366 OVEI~LAPPING DEBT Palm Beach County General Obligation PoOled Financing Loans Improvement Revenue. Public Building Corp. Revenue. Beach Acquisition (1986) . public Improvement Revenue 2.5M Improvement . Revenue (1986) and Sewer Revenue. School Board of Palm Beach County General Obligation. $87,245,000 $303,245,000 $38,610,000 67,619,840 22,955,000 32,695,000 860,000 1,105,000 30,995',000 $121,315,000 $190,290,000 Palm Beach County solid Waste Authority Revenue Bonds. Total Overlapping Debt $390,490~000 $156,229,840 $420,000,000 $731,605,000 Overlapping Debt Applicable to the City (3.76%) (2) $ 12,680,412 $ 5,874,242 $ 27,508,348 Total Direct and Applicable Overlapping Debt $ 31,014,187 $ 24,886,510 $ 70,133,714 (1) Includes Accreted Value of the 1985 Bonds that are capital appreciatio~ Bonds. (2) The 3.76% used in determining the applicable overlapping debt represents the taxable assessed valuation of the City of Boyn~on Beach as a percen~ of the taxable assessed valuation of Palm Beach County and is considere( as reasonable basis for determining the impact of such overlappinc general obligation debt and non-self supporting revenue debt for bot~ the County Government and the County Solid Waste Authority. SOURCE: City of Boynton Beach and Palm Beach County. A-8 Debt Ratios (as of September 30, 1989) ~8~ ~axable Assessed Valuation (City) ........ 78! Preliminary Estimated Population (City). ~8~axable Assessed Valuation (County) ......... 289 Preliminary Estimated Population ~County) ~rect General Obligation Debt per Capita ........ ~rect and Applicable Overlapping General Obligation Debt per Capita ....... ~rect General Obligation Debt as a per~e~t of Taxable AssessedValuation ..... ~ect eneral Obligation )ebt as a and of Debt as a percent .$ 1,690,133,573.00 47,451.00 -$44,894,656,220.00 865,507.00 386.37 653.60 1.08% 1.84% 1,178.07 3.31% ~URCE: City of Boynton Beach and Palm Beach County A-9 Financial and Statistical Data Comparative Statement of General Fund Revenues and Expenditures Fiscal Years Ending September 30, BEGINNING FUND BALANCE REVENUE Property Taxes Public Service Taxes Utility Taxes Count5 Grant'Revenue(1) Interest Ear~ed Charqe Fine & Rents & Royalties Misc. Reserved/Designated Reve. TOTAL REVENUE 1986 1987 1988 1989 $1,233,963 $2,499,516 $2,762,421 $2,131,72 6,906,826 8,000,733 8,615,440 10,439,05 1,538,977 1,602,549 1,816,571 1,910,56 1,653,940 1,816,390 1,899,722 2,145,02 1,616,766 1,965,903 1,587,304 1,823,00 2,867,555 3,142,444 3,423,833 3,693,2] 333,424 421,060 503,904 462,02 260,474 457,198 146,759 435,38 230,054 344,645 401,932 438,5S 230,527 239,905 251,970 333,43 48,873 52,031 137,245 55,52 9,168 9,927 12,581 16,0~ 102,724 57,882 98..3t8 233,2~ 88,828 299,682 135,012 171,6~ $15,888,136 $18,410,349 $19,030,591 $22,156,9] EXPENDITURES General Government Public Safety Public Works Culture & Recreation Capital Outlay Grant Expenditures Other TOTAL EXPENDITURES REVENUES OVER(UNDER) EXPENDITURES Net Transfers ENDING FUND BALANCE $2,394,752 $3,318,417 $4,666,846 $5,837,2~ 8,594,051 10,303,719 11,257,296 12,770,0~ 762,351 759,194 766,133 845,1~ 2,7G0,459 2,995,272 3,208,025 3,538,9z 219,243 556,590 374,483 769,3( 260,474 481,116 143,461 431,91 641,1~ $14,931,330 $18,414,308 $20,416,244 $24,833,8 956,806 (3,959) (1,385,653) (2,676,98. 308,747 266,864 754,952 1,209,21 $2,499,516 $2,762,421 $2,131,720 $ 663,9~ SOURCE: Financial records of the City A-10 Pension Fund The City has three single-employer pension plans. The fireman and p/.~ceman ame covered by separate plans and substantially all other full-time Cil employees are covered by the general retirement plan. Reserves for th e pension funds are designated to cover future pension benefits, refund o~ension contributions, actuarial deficiencies, and variations in actuarial assumptions. The schedule below reflect information on the various funds as of December 31, 1989. The actuarial deficiencies are deferred obligations which are being funded over 30 years through employer and employee contributions and fund investment revenue. Retirement Police Fireman Trust Pension Pension Fund Fund Fund Date of actuarial valuation Fotal pension benefit ~btigation .~et assets available for oenefits, at cost Yet assets available for ~enefits, at market value Jn ~ded pension benefit ob~ ~ation (based on plan ~s~ts) Interest rate assumption used Ln actuarial valuation ~ontribution to the olan for the year ended ~eptember 30, 1990 12-31-89 12-31-89 12-31-89 $20,506,195 $8,439,017 $8,174,215 16,319,650 6,853,030 7,722,569 17,026,156 7,815,418 7,753,519 3,480,039 623,599 420,696 8.0% 10.0% 10.0% 1,184,478 635,650 513,690 The contribution amounts were determined by the City's actuaries and in Dompliance with applicable Florida statutes and are withinthe guidelines ~stablished by Governmental Accounting Standards Board No. 5. ~OURCE: City of Boynton Beach ~6~ A-11 Growth Indices Population Trends Average Annual Palm Beach Average Annual Year Bo~.nton Beach % Increase County % Increase -- 228,106 1960 10,467 4.34% 1970 18,115 5.63%/ 348.993 ~ ' 5.15% 1980 39,000 7.97% 576,863 1986 45,000 ~ 2.~- 751,533 ~8% 1987 49,258 9.46% / 789,533 5.06% 1988 52,110 5.70% ~ 831,146 5.27% 1989 54,909 ~ ~,3~ 865,507 4.13% SOURCE: U.S. Census data for 1960 and 1970 population estimates; City c Boynton Beach Comprehensive Annual Financial Reports for 1980, 1S86 and 19[ estimated city population; city of Boynton Beach Planning Department fc 1986-1989 estimated County population and for 1988 and 1989 estimated Ci- population; and Area Planning Board of Palm Beach County ~or estimated 198 1989 County population. Commercial Bank Deposits (in thousands) 1983 $226,552 1984 300~562 1985 337,504 1986 492.059 1987 459,082 1988 495,791 1S89 515,546 SOURCES: Greater Boynton Beach Chamber of Commerce and Florida Banke Association. A-12 Firm -~otorola Corporation ethesda Memorial ~ospital City of Boynton Beach Metal Products of Palm Beach, Inc. Gulfstream Lumber, Inc. Mazzoni Farms, Inc. Dubois Farms M&R Farms Florid~Pneumatic Manuf. Group Florentine Marble Co., Inc. Major Employers Industry Electronics Hospital City Government Metal Products Lumber Indoor Foilage Green Peppers Vegetables Pneumatic tools Cultured Marble No. of Employees 1,700 1,200 696 125 130 150 525-/125-* 150,/130,* 75 6O ~*In season only. **Off season Source: Greater Boynton Beach Chamber of Commerce. Building Permits Commercial Construction Residential Construction Fiscal Number Number Year of Units Value of Units Value 1980 11 2,513,338 1981 10 3,098,117 1982 55 21,415,891 1983 132 10,834,263 1984 172 27,623,961 1985 216 23,540,518 1986 72 8,722,346 1987 28 18,622,492 1988 118 22,157,315 1989 168 43,849,763 684 31,149,815 436 24,406,626 189 10,923,187 274 32,682,752 841 52,949,298 819 53,294,505 1,611 78,988,881 569 73,829,254 504 51,254,008 752 54,609,442 Source: City of Boynton Beach Building Department. A-13 Boynton JCP Assoc. Quantu~ Assoc. Motorola, Inc. Summit Assoc., Ltd. Landings Apartments Federated D~pt. Stores, Mah0ganyBay Newton South Banyon~Creek Wolboyn Dev. Corp. Principal Taxpayers Assessed Valuation $ 76,832,261 23,030,945 16,141,023 14,739,313 13,828,705 13;113,466 12,509,474 11,951,176 11,812,496 10,106,620 $204,065,479 Percent of Total County Assessed Valuation Tax Roll Yea 4.6% 1.4 1.0 .9 .8 .8 .8 .7 .7 .6 12.3% Source: Palm Beach County Tax Collector's office. Compiled from various sources, estimated only A-14 PALM BEACH COUNTY Introduction Palm Beach County, Florida (1980 Census population 576,863 and 1989 ~_~liminaryestimated population 865,507) is locate~on the southeast Florida coast, bounded on the east by the Atlantic Ocean, Martin County on the north, Broward County on the south and Imke Okeechobee and Hendry County on the west. The land area of the County is approximately 2,230 square miles running approximately 45 linear miles north to south and 53 linear miles east to west. There are 37 incorporated municipalities located within the County five of which have a current population of 25,000 or more. .Some of the major cities include theCity of West Palm Beach, the county seat, Belle Glade, the heart of Palm Beach County's agricultural activity; the coastal cities of Bolrnton Beach, Boca Rato~, DelrayBeach and Jupiter, as well as the group of communities in the immediate W~t Palm Beacharea referred to collectively as the "Palm Beaches". Palm Beach County is reported to be one of the largest agricultural a~eas in the world with [rural production exceeding $1 billion dollars in 1987-1988. Ths crops of the area include sugar production and crop/vegetable Beef and dairy cattle production, citrus and tropical fruit and flower~ are also large components of the total agricultural production of the County. Over the past two decades, the economy of the County has become increasingly diverse as the corporate community has rapidly expanded and contributed to local eco~o~ic g~wth. ~n addition to the prlma~ tourism ~ agricultural industries, t~ principal segments of the economy include ~ ~ufacturlng, service industries, and wholesale and retail trade. Major %~?Ioyers include IBM Corporatiqn, producing computer equipment, with 5,100 employees; Pratt and Whitney AirCraft, a jet ~ngine facility with 7,800 employees; and Southern Bell, specializing in communications, with an employment of 1,600. In addition, a new Motorola facility recently completed in the City of Boynton Beach employs 1,700 persons. A,15 Emplo!nnent statistics Among the twelve largest non-agricultural private employers located in Palm Beach County, together with their products and number of employees are the following: Firm Pratt & Whitney Aircraft IBM Corp. Florida Power & Light Motorola Corporation Siemens Information Systems Southern Bell Telephone Boca Raton Resort & Club Palm Beach Newspaper, Inc. Breakers Hotel Barnett Bank of Palm Beach County Philips Components Northern Telecom, Inc. No. of Industry Employees Jet Engine~ 7,800 Computer Equipment 5,100 Electrical Power 2,000 Electronics 1,700 Communications Systems 1,700 Telecommunications 1,600 Hotel 1,500 Newspaper 1,350 Hotel 1,200 Commercial Bank 1,000 Tantalum Capacitors 940 Printed Cir. Boards 750 Source: Based upon 1989 Listing of Industries, Florida Chamber of Commerce and Development Board of Palm Beach County. Estimated Emplolnnent in Non-Agricultural Establishments In Palm Beach County (in thousands)(1) Manufacturing Construction Transportation Trade Finance Service Government Total: 1988 1987 1986 ~985 1984 35,546 35,786 36,918 36,544 32,594 29,747 27,873 27,159 26,182 24,524 15,725 15,098 13,388 12,845 12,751 90,902 85,486 93,550 75,605 70,863 27,778 27,753 26,128 23,092 20,678 112,013 103,525 95,120 92,076 85,932 20,022 18,775 17,550 15,632 15,082 331,733 314,296 309,813 281,976 262,424 (1) As of April 1. Source: Florida Department Employment Security. of Commerce; Department of Labor an A-16 Unemployment Data (in thousands) (1) - - 1989 1988 1987 1986 1985 1984 Civil Labor Force 430.4 408.9 395.5 368.5 349.0 324.2 ~ ~Emptoyment 404.6 395.9 375.1 344.9 318.4 303.4 Unemployment 25.8 20.5 21.1 21.6 21.4 20.8 Unemploymen~ Rate 6.0% 5.0% 5.3% 5.7% 6.0% 6.3% (1) A~-6f April 1. Source: Florida Department of Commerce; L~bor and Employment Security. Growth Indices Building Permits* (Total $ Value) (Value for Resi- Gross* dential 0n1¥)($) Sales $ 1989 1,016,995 707,701 16,443,983 1988 1,851,793 1,223,762 16,398,254 1987 2,141,931 1,363,318 14,662,643 1986 2,081,943 1,277,440 12,669,519 1985 1,854,601 1,068,442 12,449,045 * (O00's omitted). Source: Palm Beach of Revenue County Development Board; State of Florida Department A-17 Y~ar 1987 1986 t985 1984 1983 1982 Per Capita Personal Income Palm Beach county, Florida and united states Palm_Beach Cou~nt¥ Current Percenu Dollar~ of__U.S,. United Florija _ States Current Percent Current Dollars ojU.S= Dollars $21,246 137.2% $15,584 100.7% $15,484 19,938 136.2 14,630 100.0 14,636 19,014 136.7 13,898 99.9 13,908 17,662 134.7 13,029 99.4 13,114 15,142 129.6 11,593 99.2 11,687 14,156 127.4 10..927 98.3 11,113 Source: University of Florida, Bureau of Economic and Business Research based on data provided by the U.S. Department of commerce, Buree of-Economic Analysis. commercial Bank Deposits (in thousands of dollars) as of December 31st 1988 $495,791 1987 459,082 1986 492,059 1985 337,504 1984 300,562 1983 226,552 source: Florida Bankers Association. A-18 APPENDIX B SUMM~RY OF CERTAIN PROVISIONS OF THE RESOLUTION APPENDIX B ~UMMAR¥ OF CERTAIN PROVISIONS OF THE RESOLUTION Certain provisions of the Resolution are summarized below. The summary does not purport to be complete and is subject in all respects to the provisions of, and is qualified in its entirety by reference to, the Resolution. Definition$. "Accountant" means the certified public accountants or firm of certified public accountants employed by the City under the provisions of Section 705 of the Resotutiom to perform and carry out the duties imposed on the Accountant by the Resolution. "Accreted Amount" means with respect to Capital Appreciation Bonds of any Series, the amount set forth in a Series Resolution as the amount representing the initial public offering price, plus the accumulated and compounded interest on such Bonds. "Additional Bonds" means the Bonds issued at any time under the provisions of Section 208 of the Resolution. "Annual Budget" means the Annual Budget of Current Expenses and Capital Expenditures adopted pursuant to Section 503 of the Resolution. "Bond Service Account" means the Bond Service Account, a special account sated and designated by Section 505 of the Resolution. ..... "Bonds" means col'lectively the Bonds issued under the provisions of Article II of the Resolution. "Business Day" means any day, other than a Saturday or Sunday, on which commerclal banks (including the Trustee) are open for business in the State and in New York, New York and on which the New York Stock Exchange is open. "Capital Appreciation Bonds" means Bonds the interest on which is compounded and accumulated at the rates and on the dates set forth in s Series Resolution and is payable upon redemption of on the maturity date of such Bonds. "Capital Expenditures" means all expenditures made for extensions, additions, improvements, renewals and replacements (other than ordinary maintenance and repairs) acquired, constructed or installed for the purpose of preserving, extending, increasing or improving the service rendered by the Water and Sewer Utility or for reducing the cost of operation, and shall include the cost of purchasing and installing such equipment and appurtenances as may be necessary to meet the demands upon the Water and Sewer Utility; it shall also include the acquisition of such lands and rights-of-way and such engineering, legal and administrative expenses as may be required in connection with the foregoing. "Construction Fund" means the Bolrnton Beach Water and Se~er Utility Construction Fund, a special fund created and designated by Section 401 of the Resolution. "Consulting Engineers" means the engineer or engineering firm or corporation at the time employed by the City under the provisions of Section 704 of the Resolution to perform and carry out the duties imposed on the Consulting Engineers by the Resolution. "Cost," as applied to the Water and Sewer Utility, the Project or any ImpDovements, means the cost of acquisition and construction and all obligations and expenses and all items of cost which are set forth in Section 403 of the Resolution. "Current Expenses" means the City's reasonable and necessary current expenses of maintenance, repair and operation of the Water a~d Sewer Utility and shall include, without limiting the generality of the foregoing, ai1 ordinary and usual expenses of maintenance and repair, which may include expenses not annually recurring, all City administrative expenses and any reasonable charqes for pension or retirement funds properly chargeable to the Water and Sewer Utility, insurance premivms, engineering expenses relating to maintenance, repair and operation, fees and expenses of Paying Agents, leg~l expenses, any taxes which may be lawfully imposed on the Water and Sewer Utility or its income or operations:and reserves for such taxes, and any other expenses required to be paid by the City under the provisions of this Resolution. or by law all in accordance with the accrual method of accounting but shall not include any ~eserves for extraordinary maintenance or repair, (except to the extent p=ovlded under the Federal Clean ~ater Act, 33 U.S.C.A. 1~51 et seq. and the regulations promulgated thereunder wZth respect to certain equipment rep!acement) or ~any allowance for depreciation, any amortization charges, or any deposits or transfers tO the credit of the Sinking Fund, Loan Repayment Fund, the Renewal and Replacement Fund, and the ~eneral Reserve Fund. *'Current Interest Bonds" means Bonds the interest on which is payable on the Interest Palnnent Dates provided therefor in a Series Resolution. "Defaulted Interest'fmeans Defaulted Interest as. defined in Section 203 of the Resolution. "Depositary" means any bank or trust company duly authorized by law to engage in the banking business and designated by the City Council as a d~positary of moneys under the provisions of the Resolution. "Expansion Pro~ects" means the Project or any portion thereof or any Improvements or any portion thereof to be devoted to the oversizing, separating, expanding or constructing of new additions to the Water and Sewer Utility and which are designed to expand its capacity. "Fiscal Year" means the period commencing on the first day of October and ending on the last day of September of the following year as the same may be amended from time to t~me to conform to the fiscal year of the City. B-2 "Flow of Funds'~ means the amount and timing of pal~ments to b~ made by the City Manager from Revenues and Impact Fees to the credit of the Bond Service Account, the Mandatory Redemption Account, the Reserve Account, the Loan Repayment Fund, the --lewat and Replacement Fund and the General Reserve Fund or any subfunds or :ounts established by Series Resolution within said Accounts and Funds all as ~.~11 be fixed initially by Section 505 of the Resolution and as to each Series of Additional or Refunding Bonds by a ~Series Resolution; provided, however, that the order of payments shatl be as set forth above and provision shall be included in each Flow of Funds for the Loan Repayment Fund, whether or not a State Loan is being entered into at such time. "General Reserve Fund" means the Boynton Beach General Reserve Fund, a special fund created a~d designated by Section. 505 of the Resolution. "Government Obligations" means direct obligations of the United States of America. "Impact Fee Fund" means the Boynton Beach Impact Fee Fund, a special fund created and designated by Section 505 of the Resolution. "Impact Fees" means all nonrefundable (except at the option of the City) capital expansion fees, utility improvement fees or other similar fees and charges s~parately imposed by the City as s nonuser capacity charge for a proportionate share of the cost of expanding, oversizing, separating or constructing new additions to the Water and Sewer Utility, including but ~without limitation the cap ts1 facilities charges established by Ordinance NO. 79-18, adopted on June 19, tD79, as the same may be emended from time to time, but only to the extent that any such fee or charge may under applicable law be used to pay debt service on one or ~e Series of Bonds issued under this Resolution, and any income from the ~estment of moneys in the Impact Fee Fund or any other moneys transferred to the =_2act Fee Fund pursuant to Sections 407 and 602 of the Resolution. "Improvements" means such improvements, renewals and replacements of the Water and Sewer Utility or any part thereof and such extensions and additions thereto as ma~ be necessary or desirable, in the judgment of the City, to keep the same in proper condition for the safe, efficient and economic operation thereof and to integrate into the Water and Sewer Utility any unit or part thereof, and shall include such land, structures and facillties as may be authorized to be acquired or constructed by the City under the provisions of Florida law and such improvements, renewals and replacements of such land, structures and facilities of the Water and Sewer Utility and such extensions and additions thereto as may be necessary or desirable for continuous and efficient service to the public, which shall be financed from the proceeds of Bonds issued under the provisions of this Resolution or the proceeds of any State Loan or from moneys deposited to the credit of the Construction Fund, the Renewal and Replacement Fund, the General Reserve Fund or from any other source or such extensions and additions thereto as may be added or received with or without consideration. "Interest Payment Date" means a November 1 or May 1, as the case may be; provided, however, that Interest Payment Date may mean, if so provided in a Series Resolution or other supplemental resolution permitted by the Resolution, such other date or dates provided therein or permitted thereby. B-3 "Interest Requirement" for any Bond Year means the amount that is required to pay interest on all Outstanding Bonds on the May t Interest Palnnent Date in such Bond Year and on the November 1 Interest Payment Date of the next succeeding Bond Year. "Investment Obligations" means (i) Government Obligations, (ii) bonds, debentures or notes issued by any of the following Federal agencies: Banks for Cooperatives, Federal Intermediate Credit Banks, Federal Home I~oan Banks, BxportImport Bank of tne United States, Government National Mortgage Association, Federal Land Banks, or the Federal National Mortgage Association (including participation certificates issued by ~such Association), (iii) all other obligations issued or unconditionally guaranteed as: to principal and interest by an agency or person controlled or supervised by and acting as an instrumentality of the United States Government pursuant tO authority grante~ by the Congress, (iv) fnlt faith and credit obllga~ions of any state of the Un~ted States (other than obligations rated lower than the three highest grades by a nationally recognized rating agency), (v) repurchase agreements wlt~ reputable financial institutions fully secured by Government Obligations, continuously having a market value at least equal to the amount so invested subjlect to the foregoing being permitted investments of municipal fUnds under Florida taw, (vi) the Local Government Surplus Funds Trust Fund created by Part IV of Chapter 218, Florlda Statutes, and {vii) Time Deposits, secured by the foregoing. "Loan Rep&yment Fund" means the Boynton Beach State Pollution Control and Water Facilitles Loan Repayment Fund, a special fund created and designated by Section 505 of the Resolution. "Mandatory Amortization Requirements" means the moneys required to be deposited in the Mandatory Redemption Account for the purpose of redeeming and paylnq when due any Mandatory Term Bonds issued pursuant to the Resolution, the specific amounts and times of such deposits to be determined by the City Council in the resolution authorizing the issuance of such Mandatory Term Bonds. "Mandatory Redemption Account" means the Mandatory Redemption Account, a special account created and designated by Section 505 of the Resolution. "Mandatory Term Bonds" means the Term Bonds of any Series which the City Council determines in the resolution authorizing or providing for the issuance of such Series shall be retired in accordance with Mandatory Amortization Requirements. "Net Revenues" for any particular period means the amount of the excess of.the Revenues for such period over the Current Expenses, payable from the Revenue Fund, for such period. "Outstanding" means all Bonds that have been authenticated and delivered by the Bond Registrar under the Resolution, except: (i) Bonds paid or redeemed or delivered to or acquired by the Bond Registrar for cancellation: (ii) Bonds for which the Bond Registrar or Paying Agent shall hold sufficient moneys or Defeasance Obligations the principal of and the interest on B-4 which, when due and payable, will provide sufficient moneys to pay the principal of, and the interest and redemption premium, if any, on such Bonds to their maturlt~ date or dates or dates fixed for redemption or to the date or dates fixed - ~for their optional redemption. "Paying Agent" means, for any series of Bonds, designated as such and performing the duties set providing for the issuance of such Bonds. the paying agent or tender agent forth in the Series Resolution "Principal" means (i) with respect to the principal amount of any Capital Appreciation Bond. the Accreted Amount thereof (the difference between the stated amount to be paid at maturit~ and the Accreted Amount being deemed unearned interest) except as used in the Resolution in connection with the authorization and issuance of Bonds and with the order of priority of payments of Bonds after an Event of Default, in which cases "principal" means the initial public offering price of a Capital Appreciation Bond (the difference between the Accreted Amount and the initial public offering price being deemed interest) but when used in connection with determining whether the Holders of the requisite principal amount of Bonds then outstanding have given any request, demand, authorization, direction, notice, consent or waiver, ."p~incipal amount" m~ans the Accreted Amount and (ii) with respect to the principal emottnt of any Current Interest Bond, the principal amount of such Bond payable at maturity. "Principal and Interest Requirements" for any Bond Year means the sum of the Principal Requirement and the Interest Requirement for such year. For purposes of the definition of "Principal and Interest Requirements" for Balloon Indebtedness and Variable Rate Indebtedness the following shall apply: Balloon Indebtedness the Principal and Interest Requirements on Balloon Indebtedness shall be calculated as of any calculation date as including the amount of principal and interest which would be payable in a given period if such Balloon Indebtedness were amortized (i) from the date of such calculation over a period equal to 20 years, if such indebtedness matures 20 years or more from the date of such calculation or, (ii) if the period from the date of such calculation to the final maturity of such Balloon Indebtedness is less than 20 years, then the actual number of years to maturity shall be used, on a level annual debt service basis at an interest rate. if such Balloon Indebtedness is not Variable Rate Indebtedness, equal to the actual net interest cost on such Balloon Indebtedness, calculated without regard to this provision, and if such Balloon Indebtedness is Variable Rate Indebtedness, ~earing a net interest cost calculated in accordance with the melthodolog~f established for Variable Rate Indebtedness. B-5 Variable Rate Indebtedness the Principal and Interest Requirements on Variable Rate Indebtedness shall be calculated by assuming the interest rate thereon for any future period for which the actual interest rate cannot yet be determined to be an interest rate per annum equal to the higher of (1) the actual net interest cost rate born by such indebtedness at the time of original issuance, (ii) the highest average variable rate for any seven (7) consecutive days over the preceding twelve months or (iii) 9~2 percent per annum. "Principal Requirement" for any Bond Year'means the sum of (a) the amount required to pay the principal of all scheduled to mature on November 1 of the followlng Bond Year; outstanding Bonds (b) the Sinking Fund Requirement for Term Bonds, scheduled for November 1 of the following Bond Year; and (c) the amount required to be deposited in the Loan Repayment Fund in such Bond Year. "Project" means the additions, extensions and improvements to be made to the Water and Sewer Utility from the proceeds of the Bonds initially authorized to be issued under the provisions of Section 207 of the Resolution as described in the engineering report of the Consulting Engineers required to be filed pursuant to Section 207 of the Resolution. "Renewal and Replacement Fund" means the Boynton Beach Water and Sewer Utility Renewal and Replacement Fund created and designated by Section 505 of the Resolution. "Reserve Account" means the Reserve Account, a special account created and designated by Section 505 of the Resolution. "Reserve AccountDeposit Requirement" means (a) in each of the sixty successive months beginning with the month following the delivery of any Series of Bonds issued under the provisions of Sections 208 or 209 of the Resolution, the Reserve Account Requirement for which Series shall not have been capitalized from the proceeds of such Bonds, an amount equal to one-sixtieth (lJ60) of the difference between the amount on deposit in the Reserve Account prior to the issuance of such Series of Bonds and the Reserve Account Requirement to be in effect iF~ediately following the issuance of such~ Series of Bonds and (b) in each of the twelve successive months beginning with the month following any month in which any amount shall have been withdrawn from the Reserve Account an amount equal to one-twelfth (1/12) of the deficiency created by such withdrawal until such deficiency is made up. B-6 "Reserve Account Insurance Policy" means the insurance policy or surety bond deposited in the Reserve Account in lieu of or in partial substitution for cash on deposit or to be deposited therein. "Reserve Account Requirement" as to each series of Bonds means, as of any date o ~alculation, an amount of money, securities or Reserve Account Insurance Policy n~' less than the ~aximum Principal ,and Interest Requirements for any Bond Year specified in the Ser~es ResolutiOn providing for the issuance of such Bonds, but in no event, except in the case of Bonds constituting Balloon Indebtedness or Variable Rate Indebtedness, shall the amount so fixed be less than, as of any date of calculation, an amount equal to the Principal and Interest Regulrements in the next succeeding Bond Year for which there is a Principal Reguirement, on account of all Bonds outstanding. Re enue Fund means the Bolrnton Beach Water and Sewer Ut~t~ty Revenue Fund, a special fund created and designated by Section 504 of the Resolution. "Revenues" means all moneys, fees, charges and other income received by the Cit~ or accrued to the City in connection with or as a result of its ownership or operation of the Water and Sewer Utility, including the income derived by the City fr°m the sale of water produced, treated or: distributed by, or the collection, transmission, treatment or disposal of sewage b~ the Water and Sewer Utility, any proceeds of use and occupanc~ insurance on the Water and Sewer Utility or any part thereof and income from investments made Under this Resolution of moneys held in th~ various Funds and Accounts created under Article V of the Resolution, except Impact Fees, payments on sgecial assessments for water and sewer improvements, contributions in aid, connection charges and income from the investment of moneys in ithe Construction Fund and the Impact Fee Fund. "Sinking Fund" means the Boynton Beach Water and Sewer Utility Revenue Bonds Il rest and Sinking Fund, a special fund created and designated by Section 505 of th~'~Resolution. "State Loan" means a loan from the State of Florida to the City pursuant to any State of Florida Loan Agreement entered into pursuant to the Authority granted by Article VII, Section 14 of the Florida Constitution and Section 403.1834, Florida Statutes, or any legislation continuing such authority. '~ater and Sewer Utility" means, collectively, the existing water treatment and distribution system and wastewater colleciton and disposal system owned and operated by the City, including the City's joint interest with the City of Delray Beach, Florida, in the regional wastewater treatment plant, together with the Project and any Improvements. Exchan e of B_nds. Bonds. upon surrender thereof at the principal corporate trust office of the Bond Registrar, together with an assignment duly executed by the Holder Or his attorney or legal representative in such form as shall be satisfactory to the Bond Registrar, may, at the option of the Holder thereof, be exchanged for an equal aggregate principal amount of Bonds of the same series and maturity, of any denomination or denominations authorized by this Resolution and bearing interest at the same rate as the registered Bonds surrendered for exchange. B-7 Realstration of Transfer and Ownershin of Bonds. The transfer of any Bond may be registered only upon the books kept f6r the registration of transfer of Bonds upon surrender of such Bond to the Bond Registrar, together with an assignment duly executed by the Holder or his attorney or legal representative in such form as shall be satisfactory to the Bond Registrar. Upon any such exchange or registration of transfer, the City shall execute and the Bond Registrar shall authenticate and deliver in exchange for such Bond a new registered Bond or Bonds. registered in the n~ne of the transferee, of any denomination or denominations authorized by this Resolution. in the aggregate principal amount equal to the principal amount of such Bond surrendered, of the same series and maturity and hearing interest at the same rate. In all cases in which Bonds shall be exchanged or the transfer of Bonds shall be registered, the City shall execute and the Bond Registrar shall authenticate and deliver at the earliest practicable time Bonds in accordance with the provisions of the Resolution. No service charge shall be made for any registration of transfer or exchange of Bonds, but the City and the Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Bonds., Except as provided in a Series Resolution, neither the City nor the Bond Registrar shall be required (1) to issue, register the transfer of or exchange Bonds during a period beginning at the opening of business fifteen (15) days before the day of mailing of e notice of redemption of Bonds under Section 303 Of the Resolution ~nd ending at the close of business on the day of such mailing, or (ii) to register the transfer of or to exchange any Bond so ,~elected for redemption in whole or in ~art. The City, any Paying Agent, the Bond Registrar and any agent of the City, any Paying Agent, and the Bond Registrar, may treat the person in whose name any Bond is registered on the books of the City kept by the Bond Registrar pursuant to the Resolution as the Holder of such Bond for the purpose of receiving payment of principal of and premium, if any. and interest on. such Bond, and for all other purposes whatsoever, whether such Bond be overdue, and, to the extent permitted by law, neither the City, any Paying Agent, the Bond Registrar nor any such agent shall be affected by any notice to the contrary. Refundina Bonds. Refunding Bonds ma~ be issued under and secured by the Resolution, from time to time for the purpose of providing funds for paying at maturity or redeeming all or any part of the outstanding Bonds of any one or more Series, including the payment of any redemption premium thereon and any interest which will accrue on such Bonds and any principal on Serial Bonds which will mature to the redemption date or stated maturity date or dates and any expenses in connection with such paying at maturity and redeeming. Except as to any Credit Facility and as to any differences in the maturities thereof or the rate or rates of interest or the provisions for redemption and except for such differences, if any, respecting the use of moneys in various accounts, such Refunding Bonds shall be on a parity with and shall be entitled to the same benefit and security of the Resolution as all other Bonds theretofore or thereafter issued under the Resolution. Prior to or simultaneously with the delivery of Refunding Bonds, there shall be filed with the City Clerk: a certificate, signed by the Director of Finance to the effect that either (i) the amount of Net B-8 Revenues for any four consecutive quarters in the preceding six quarters (calculated on a Fiscal Year basis) adjusted in the manner provided in Section 208(d){i)(1) of the Resolution shall not be less than 115% of the maximum amount of Principal and Interest Requirements for any Bond Year thereafter, including the Refunding Bonds, but not including any Bonds that shall no longer be Outstanding as a result of the application of proceeds of the Refunding Bonds, or (ii) the Principal and Interest Requirements on the Outstanding Bonds for each Bond Year following the issuance of such Refunding Bonds shall be less than or equal to what such Principal and Interest Requirements would have been for each such Bond Year for the Bonds Outstanding prior to the issuance of such Refunding Bonds. Mutilated. Destroyed or Lost Bonds. In case any Bonds shall become mutilated or be destroyed or lost, the City may cause to be executed, and the City Manager may deliver, a new Bond of like date, number and tenor in exchange and substitution for'and upon the cancellation of snch mutilated Bond, or in lieu of and in substitution for such Bond destroyed or lost, upon the holder's paying the reasonable expenses and charges of the City in connection therewith, and, in the ca~ of a Bond destroyed or lost, his filing with the City Manager evidence satisfactory to him that such Bond was destroyed or lost, and of his ownership thereof, and furnishing the City with indemnity satisfactory to it. .... Effect of Catlina for Redemption. On the date so designated for redemption, nc. ce having been published and filed in the manner and under the conditions h~=~inabove provided, the Bonds so called for redemption shall become and be due and payable at the redemption price provided for redemption of such Bonds on such date, = and, moneys for payment of the redemption price being held in separate accounts by the Director of Finance in trust for the holders of the Bonds to be redeemed, all as provided in the Resolution, interest on the Bonds so called for redemption shall cease to accrue, such Bonds shall cease to be entitled to any lien, benefit or security under the Resolution, and the holders or registered owne~ ~of,~ such Bonds shall have no rights in respect thereof except to receive PaI~me~t~o~,'-the redemption price thereof. Bonds~-.~alled for Redemption or Payment Provided Therefor Not Outstandir..3. 8onds~,W~'ich. have been duly called for redemption or with respect to which either · rrevocable instructions to call for redemption or to pay et their respective maturities and mandatory redemption dates or any combination of such redemption and pa.I~.ent have been given by the City to the Director of Finance, in form satisfactory to him and for the payment of the redemption price and maturing principal amounts of which and the interest to accrue thereon to the date fixed for redemption or the dates of their respective maturities and mandatory redemption dates sufficient moneys, or Defeasance Obligations in such amounts, bearing interest at such rates and maturing (without option of prior payment) at such dates that the proceeds thereof and the interest thereon will provide sufficient moneys, B-9 shall be held in separate accounts by the Director of Finance in trust solely for the Owners of the Bonds to be redeeme~ and paid, shall not be deemed to be outstanding under the provisions of this Resolution and shall cease to be entitled to any benefit or security under this Resolution other than to receive payment from such moneys. C.n trn ti n F ~. The moneys in the Construction Fund shall be held by the Director of Finance in trust and applied to the payment of the Cost of the Project or any portion thereof financed by a Series of Bonds issued under Section 207 of the Resolution or any Improvements and, pending such application, shall be subject to a lien and charge in favor of the holders of the Bonds issued and outstanding under the Resolution and for the further security of such holders until paid out as herein provided. Rev-lvin Fund. The from the C~nstruction Fund upon its requisitions Manager and filed with the Director of Finance, at one time or from time to time, a sum or sums aggregating not more than City as a revolving fund for the payment of items of cost referred to in Section 403 of the Resolution which can not conveniently be paid as therein otherwise provided. The revolving fund shall be reimbursed from time to time for such items of cost so paid by payments fwom the Construction Fund upon requisitions of the City, similarly signed and filed, specif~in~ the payee and the amount and purpose of each payment from the revol=ing f~nd ~orl which such reimbursement is requested, accompanied by a certificate, Similarly s~gned, certifylng that eac~ such item ~ paid was a necessary item of cost and that such item could not conveniently be paid except from such revolving fund, and alsD accompanied by the written approval of such certificate by the Consulting Engineers. p~yments from ConStruction Fund. ?~!~ments from the Construction Fund, except transfers and payments ~nder the preced~hg paragraph shall be made in ~eccordance with the provisions of this Section. Before any such payments shall be made the City shall file with the Director of Finance: (a) a requisition, signed by the City Manager; (b) a certificate, signed by the City Manager or the o~ficer~r~.t.~.~.f~cers duly designated by him for such purpose and attached to the requisltio~;~6~ng: (1) that obligations in the stated amounts have been incu~meff~' the City and that each item thereof is a proper charge against the Constru~'~49n Fund and has not been paid, {2) that there has not been filed with or served upon the City notice of any lien~ right to llen, or attachment upon, or claim affecting the right to receive payment of, any of the moneys payable to any of the persons, firms or corporations named in such requisition, which has not been released or will not be released simultaneously with the payment of such obligation, (3) that such requisition contains no item representing payment on account of any retained percentages which the City is at the date of such certificate entitled to retain; and B-10 (c) a certificate, attached to such requisition and signed by the Consulting Engineers, certifying their approval thereof. -- Title to Properties ~cquired. The City covenants that the Project and any I~ 9vements will be constructed on or under land which is owned or can be acquired b~u~__he City in fee simple or over or under which the City shall have acquired or can acquire either by long term lease or by perpetual easements for the purposes of the Water and Sewer Utility, free from all liens, encumbrances and defects of title which have a materially adverse effect upon the City's right to use such lands or properties for the purposes intended or which have been adequately guarded against by a bond or other form of indemnity, or lands, including public streets and highways, the right to use and occup~ which for such purposes shall be vested in the City by law or by valid rights of way, easements, franchises or licenses. Audits. The City covenants that, at least once in each twelve (12) months until~the acquisition of the Project or any Improvements shall:have been completed, it will cause an audit to be made by the Accountant covering all receipts and aach audit shall be filed with the Director of Finance and the Consulting ~ngineers. Copies of such audit reports shall be filed with the City Clerk. Disposition of Construction Fund Batanf~. When the construction of the Project or an~ Improvements shall have been completed, the balance in the Construction Fund not reserved b~ the City for the payment of any remaining part of the Cost of the Pro,eot or such Improvements shall he transferred to such Fund or Account hereunder or applied by the Director of Finance upon instructions from the City Manager in reliance upon a written opinion of bond counsel to the effect that such transfer or a~ication will not cause .the interest on the Bonds or any thereof to become s~ ~ct to Federal income taxation; provided, however, that any portion of said ba=~_~ce attributable to Expansion Projects (as determined by the Consul.ting Engineers) shall be transferred to the Impact Fee Fund. Annual Budqet. The City covenants that on or before the first day of each Fiscal Year it will adopt a budget of Current Expenses and Capital Expenditures for suc5 Fiscal Year (herein sometimes called the "Annual Budget"). Copies of the ~nnual Budget shall be filed with the Cit~ Clerk, the Director of Finance and ~ailed by the City to all Owners who shall have filed their names and addresses ~ith the City Clerk for such purpose. If for any reason the City shall not have adopted the Annual Budget before the first ~ay of any Fiscal Year, the Annual Budget for the preceding Fiscal Year shall until the adoption of the Annual Budget, be deemed to be in force and shall be 5reated as the Annual Budget under the provisions of this Article. The City may at an~ time adopt an amended or supplemental Annual Budget for the remainder of the then current Fiscal Year, and the Annual Budget so amended or supplemented shall be treated as the Annual Budget under the provisions of this krticle. Copies of any such amendment or supplemental Annual Budget shall be filed with the City Clerk, the Director of Finance and mailed by the City to al/ Owners ~ho shall have filed their names and addresses with the City Clerk for such purpose. B-Il The City further covenants that the amount expended for Current Expenses in any Fiscal Year will not exceed the reasonable and necessar~y amount thereof, and that it will not expend any amount for maintenance, repair and operation of the Water and Sewer Utility in excess of the total amount provided for Current Expenses in the Annual Budget. Revenue Fund. The City covenants that all Revenues will be collected by the City and deposited as received with a Depositary or Depositarie~ to the credit of the Revenue Fund. Ail moneys in the Revenue Fund shall be held by the City in trust. Sinkin~ and Other Funds. There are created in the Sinking Fund three separate accounts designated "Bond Service Account," "Mandatory Redemption Account," and "Reserve Account" respectively. Five additional special funds are created and designated "Boynton Beach State Pollution Control and Water Facilities Loan Repayment Fund," "Bo~nton Beach Water and Sewer Utility Renewal and Replacement Fund," "Boynton Beach GeneralReserve Fund" and the "Boynton Beach Impact Fee Fund". The moneys in each of said Funds and Accounts shall be held in trust and applied only as provided in the Resolution with regard to each such Fund and Account ands pending such application, shall (except for the moneys held in the Loan Repalnnent Fund and. to the extent provided in the Resolution, the Impact Fee Fund) be subject to a lien and charge in favor of the holders of the Bonds issued and outstanding under the Resolution and for the further security of such holders until paid out or transferred as provided in the Resolution. P~nt of Current Expenses. The Current Expenses, except City administrative expenses properly chargeable to the, Water and Sewer Utility, shall be paid from the Revenue Fund as the same become due and payable. Palanents from the Revenue Fund shall be made in accordance with procedures established by the City from time to time, the Annual Budget and the covenants in Section 503 of the Resolution. Application of Moneys in Mandatory Redemption Account. Moneys held for the credit of the Mandatory Redemption Account shall be applied to the retirement of the Mandatory Term Bonds issued under the provisions of the Resolution. Application of Moneys in Reserve Account. Moneys held for the credit of the Reserve Account shall first be used for the purpose of paying the interest on and the principal of the Bonds whenever and to the extent that the moneys held for the credit of the Bond Service Account and the General Reserve Fund shall be insufficient for such purpose and thereafter for the purpose of making deposits to the credit of the Mandatory Redemption Account pursuant to the requirements of Section 505(b) of the Resolution or the Flow of Funds applicable to any Series of Bonds whenever and to the extent that withdrawals from the Revenue Fund and the amount on deposit in the General Reserve Fund are insufficient for such purposes. If at any time the moneys held for the credit of the Reserve Account shall exceed the Reserve Account Requirement, the Expansion PrOject Percentage of such excess shall be deposited to the credit of the Impact Fee Fund and the balance of such excess shall be deposited to the credit of the Revenue Fund. Application of Moneys in Renewal and Replacement Fund. Except as hereinafter provided, or except in case of an emergency caused by some extraordinary B-12 occurrence, so characterized in a certificate signed by the Consulting Engineers and filed with the City Manager, and an insufficiency of moneys held for the credit of the Revenue Fund to meet suc~ emergency, moneys held for the credit of the ?~enewal and Replacement Fund shall be disbursed only for the purpose of paying the st of additions, extensions and improvements to the Water and Sewer Utility, the st of unusual or extraordinary maintenance or repairs, the cost of renewals and ~=_~Iacements and the cost of acquiring, installing or replacing equipment and engineering, legal and administrative expenses relating to the foregoing and the cos= of providing a local share of moneys required to entitle the City to receive Federal or State grants or participate in Federal or State assistance programs related to the Water and Sewer Utility. If at any time the moneys held for the credit of the Bond Service Account, the General Reserve Fund and the Reserve Account shall be insufficient for the purpose of paying the interest on and the principal of the Bonds as such interest and principal become due and payable, then the City shall withdraw from any moneys held for the credit of the Renewal and Replacement Fund and deposit to the credit of the Bond Service Account an amount sufficient to make up any such deficiency. If at a~y time the moneys held for the credit of the General Reserve Fund and the Reserve ~6~ount shall be insufficient for making the deposits to the credit of the M~ndatory Redemption Account required by the Resolution or as required by the Flow o~ Funds applicable to any Series of Bonds, then the City Manager shall withdraw f~om any moneys held for the credit of tbs Renewal and Replacement Fund and deposit tO the credit of the Mandatory Redemption Account an amount sufficient to make up a~ such deficiencies; provided, however, that no such transfer shall be made unless the moneys then held for the credit of the Bond Service Account are at least e~ual to the maximum requirement therefor under the Resolution or under the Flow of FUnds applicable to any Series of Bonds. Any moneys SO withdrawn from the Renewal a~nd Replacement Fund and deposited to the credit of the Bond Service Account or the ~datory Redemption Account shall be restored from available moneys in the Revenue ~d, subject to the same conditions as are prescribed for deposits to the credit ~-~ the Renewal and Replacement Fund under the provisions of the Resolution or the Flow of Funds applicable tc an~ Series of Bends. Application of Moneys in the General Reserve Fund. Moneys held for the credit of the General Reserve Fund may at the election of the City be applied: (a) to pay the Cost of Improvements, (b) to purchase or redeem Bonds, (c) t~ pay the principal of and the interest on any obligations issued or indebtedness incurred by the City to pay the Cost of Improvements, which obligations will be junior and subordinate with respect to lien on and pledge of Revenues to the Bonds issued under the provisions of Article II of the Resolution and to the obligation to make the required deposits in tbs Loan Repayment Fund. (d) to make up deficiencies in any of the Accounts and Funds created by the Resolution including any deficiencies in the Revenue Fund required for the payment of Current Expenses, (e) to pay the Cost of any item qualifying from the Renewal and Replacement Fund, authorized expenditure B-13 (f) to meet contractual payments to any person for providing treatment and disposal of sewage from the Water and Sewer Utility, and (g) to pay Current Expenses of the Water and Sewer Utility consisting of City administrative expenses properly chargeable to the Water and Sewer Utility. Provided, however, that in the event of any deficiencies in any Accounts or Funds created by the Resolution the moneys in the General Reserve Fund shall be applied as provided in paragraph (d) above to make up all such deficiencies prior to applying any moneys in the Reserve Account or the Renewal and Replacement Fund. Application of Moneys in Sinking Fund. Moneys held for the credit of the Sinking Fund shall be held in tr~st and disbursed for (a) the payment of interest on the Bonds as such interest becomes due and payable, or (b) the payment of the principal of, the Bonds at their maturities, or (c) the payment of the purchase or redemption price of such Bonds before their maturity and such moneys are pledged to and charged with such payments. Deposits to and Application of M0.pe~s in the Impact Fee~Fund. The Cit~ covenants that all Impact Fees will be collected by the City and deposited as received with a Depositary or Depositaries to the credit of the Impact Fee Fund. The Director of Finance ,ma~ but shall not be required to, except as provided in the succeeding paragraph if required by a Series Resolution governing a Series of Bonds, on or before the 20th day of the month next succeeding the month in which Bonds are issued ualder the provisions of Section 207 of the Resolution and not later than the 20th day of each month thereafter (a) deposit to the credit of the Bond Service Account, the Mandatory Redemption Account and the Loan Repayment Fund ali Impact Fees until the amount on deposit to the credit of said Accounts and Fund is equal respectively to the interest on all Bonds on the next Interest Payment Date, the next maturing installment of principal on all Serial Bonds, the principal amount of Mandator~ Term Bonds of each Series then outstanding required to be retired in satisfaction of the Mandatory Amortization Requirements for such Fiscal Year and the Monthly State Loan Requirement; provided, however, that the maximum amounts deposited to the credit of said Accounts and Fu~ld in any Fiscal Year shall not exceed the total Principal and Interest Requirements in such Fiscal Year multiplied by the fraction, the numerator of which is the total prinGipal amount of Bonds originally issued under the Resolution and the total amount of State Loans originally undertaken by the City without taking into account any repayment of principal on either thereof (the "Original Debt Amount") that have been allocated to Expansion Projeuts by certificate of the Consulting Engineers at the time of issuance of Bonds or the undertaking of State Loans and the denominator of which is the Original Debt ~mount for all Bonds issued under the Resolution and all State Loans undertaken by the City. If Impact Fees are applied to redeem Serial Bonds or to redeem or pay Term Bonds in excess of the Mandatory Amortization Requirements for such Fiscal Year or to pay principal portions of a State Loan in advance of its scheduled payment date, the numerator of the fraction described above shall thereafter be reduced by the principal amount of Bonds and State Loans so retired in advance, the fraction described above, as adjusted from time to time bein( herein called the "Expansion Project ~ercentag~," and (b)deposit to the credit the Reserve Account any balance of the Impact Fees in an amount determined multiplying the Reserve Account Deposit Requirement for such month by the Expansio; Project Percentage. B-14 The timing of and the requirement, ii any, for the deposit of Impact Fees to the credit of the Accounts and Funds mentioned in the preceding paragraph may be fixed by Series Resolution at the sole election of the City in connection with the -~suance of Bonds under Section 208 or 209 of the Resolution; provided, however at in the event that the periodic deposits to the credit of the Bond Service count, the Mandatory Redemption Account, the Reserve Account or the Loan ~payment Fund are less than the periodic deposit requirements to said Accounts and Funds pursuant to Section 505 of the Resolution or pursuant to the Flow of Funds established by the Series Resolution governing any Series of Bonds or any State Loan, the City covenants that it will make up such deficiency from available moneys, if any, then held for the credit of the Impact Fee Fund subject to the same limitations as set forth in the proviso contained in the first paragraph of this Section. Any moneys remaining to the credit of the Impact Fee Fund may at the election of the City be applied: (A) to fund an amount equal to the Expansion Project Percentage of the Principal and Interest Requirements for the next ensuing Fiscal Year to be set aside in a subaccount in the Impact Fee Fund as a rate stabilization fund and applied on the 20th day of each month preceding an Interest Pa~ent Date to the extent such moneys are needed to make up deficiencies in the maximum payments permitted to be made to the credit of the Bond Service Account, the Mandatory Redemption Account, the Loan Repayment Fund and the Reserve Account pursuant to the first paragraph of this Section; (B) to reimburse the City for payments made from Revenues pursuant to the Flow of Funds applicable to each Series of Bonds which could have been made from ~%pact Fees had sufficient Impact Fees then been available by depositing moneys to .e credit of the Bond Service Account. the Mandatory Redemption Account, the _ serve Account or the Loan Repayment Fund; (C) to fund a special subaccount in the Impact Fee Fund in an amount necessary as estimated by the City to pay all or any part of the cost of any Expansion Project; and (D) subject to the limitation set forth in the last paragraph of this Section, to deposit to the credit of the Mandatory Redemption Account any remaining Impact Fees, which moneys will be used at the earliest date practicable to purchase or redeem Bonds pursuant to the provisions of Section 508 the Resolution in advance of their maturities or mandatory redemption dates, except that the City may designate particular Series of Bonds to be purchased or redeemed from moneys in the Impact Fee Fund before any other Bonds may be so purchased or redeemed. Moneys Held in Trust. Ail moneys which the Director of Finance shall have withdr awn from the Sinking Fund or shall have received from any other source and set aside for the purpose of paying any of the Bonds, either at the maturity thereof or upon call for redemption shall be held in trust for the respective owners of such Bonds. But any moneys which shall be so set aside or deposited by the Director of Finance and which shall remain unclaimed by the owners of such Bonds for the period of six (6) years after the date on which such 8onds shall have become due and payable shall upon request in writing be paid to the City or to such B-15 officer, board or body as may then be entitled by law to receive the same, and thereafter the owners of such Bonds shall look only to the City or to such officer, board or body, as the case may be, for the palnaent and then only to the extent of the amounts so received without any interest thereon, and the Director of Finance shall have no responsibility with respect to such moneys. Investment of Moneys. Moneys held for the credit of the Construction Fund, the Revenue Fund, the Bond Service Account, the Mandator~ Redemption Account, the Renewal-and-Replacement Fnnd~ the General Reserve Fund and ~he Loan Repalnnent Fund, shall, as nearly as may he practicable, be continuously invested and reinvested in Investment Obligations which shall mature, or which shati be subject to redemption by the holder thereof at the option of such holder, not later than the respective dates when moneys held for the credit of said Funds and ~ccotznts will be required for the purposes intended. Moneys held for the credit of the Reserve Account shall, as nearly as ma~ be practicable, be continuously invested and reinvested in Investment Obligations, which Investment Obligations shall mature, or shall be subject to redemption by the holder thereof at the option of such holder, not later than ten (10) years after the date of such investment. Investment Obligations so purchased as an investment of moneys in any such Fund or Account shall be deemed at all times to be part of such Fund or Account. The interest accruing thereon and any profit realized from such investment shall be credited to such Fund or Account and any loss resulting from such investment shall be charged to such Fund or Account, provided, however, that interest accruing on and any profit realized from the investment of Moneys in the Renewal and Replacement Fund and the General Reserve Fund shall be deposited to the credit of the Revenue Fund and the Expansion Project Fercentage of such interest and profit from investment of moneys in the Bond Service Account, the Mandatory Redemption Account, the Reserve Account and the Loan Repayment Fund shall be deposited to the credit of the Impact Fee Fund. Construction of Improvements: OPeration of Water and Sewer Utility. The City covenants that it will construct the Project and any Improvements for the construction of which Bonds shall be issued, or for which moneys repayable from the proceeds of Bonds shall have been advanced to the City, in accordance with plans theretofore approved by the Consulting Engineers and that upon the completion of the Project and such Improvements it will operate and maintain the same as a part of the Water and Sewer Utility. The Cit~ further covenants that it will require each person, firm or corporation with whom it may contract for construction to furnish a performance bond in the full amount of any contract exceeding Twenty-Five Thousand Dollars ($25,000) in amount, or in lieu thereof, to deposit with the City Manager to insure performance of such contract marketable securities having a market value equal to the amount of such contract and eligible as security for the deposit of trust funds as provided in Section 60I of the Resolution. The City further covenants and agrees that the proceeds of any such performance bond or securities will forthwith, upon receipt of such proceeds, be applied toward the completion of the contract in connection with which such performance bond or securities shall have been furnished. The City further covenants and agrees that each such contract for construction will also provide that payments thereunder shall not be made by the City in excess B-t6 of ninety-five per centum (95%) of current estimates except payment of the final balance due under any such contract. - Insurance. The City covenants that it will at ali times carry insurance, in a responsible insurance company or companies authorized and qualified under the laws ~f the State of Florida to assume the risk thereof, covering such properties belonging to the Water and Sewer Utility as are c~stomarily insured, and against loss or damage from such causes as are customarily insured against, by companies engaged in similar business. The City covenants that, upon any loss or damage to any properties of the Water and Sewer Utility resulting from any cause, whether or not such loss or damage shall be covered by insurance, it will proceed with the repairing, replacing or reconstructing (either in accordance with the original or a different design) of the damaged or destroyed property, and that it will forthwith commence and diligently prosecute the repair, replacement or reconstruction of the damaged or ~destroyed proper~y unless it shall determine after consultation Kith the Consulting ~Engineers that the repair, replacement or reconstruction of such property is not essential to the efficient operation of the Water and Sewer Utility. The proceeds of all insurance referred to in this Section shall be available for and shall, to the extent necessary; be applied to the repair, replacement or reconstruction of the damaged or destroyed property, and shall be paid out in the manner provided for palanents from the Construction Fund. If such proceeds are more than sufficient for such purpose, the balance remaining shall be deposited to the credit of the Renewal and Replacement Fund. If such proceeds shall be insufficient for such purpose, the deficiency may be supplied out of any moneys in the Renewal and Replacemenr Fund. Ail insurance policies shall be open to the inspection of the Owners and their ~epresentatlves at all reasonable times. Notwithstanding the foregoing provisions of this Section, the City may institute and maintain fiscally sound and prudent self-insurance programs with regard to such risks as shall be consistent with the recommendations of a qualified and regionally recognized insurance consultant. Section 710. Records, Accounts and A,,8{ts. The City covenants that it will keep the funds, accounts, momeys and investments of the Water and Sewer Utility separate from all other funds, accounts, moneys and investments of the City or any of its departments, and that it will keep accurate records and accounts of all items of costs and of all expenditures relating to the Water and Sewer Utility and of the Revenues and Impact Fees collected and the application of such Revenues and Impact Fees, and of the number of the users of water in each classification Such records and accounts shall be open to the inspection of all interested persons. The City further covenants that at least quarterly during each Fiscal Year beginning with the first full Fiscal ]fear following the date of delivery of Bonds pursuant to Section 207 of the Resolution it will cause to be filed with the City Clerk and the City Manager copies of any revisions of the water and sewer rates during the preceding three-month period and an unaudited interim report, signed by the City Manager, setting forth in respect of the preceding three-month period B-17 (a) a separate income and expense account for the Water and Sewer Utility showing the Net Revenues and a calculation showing whether the City is in compliance with Section 502 of the Resolution, (b) a statement of the number and classification of the users of the Water and Sewer Utility, (c) all deposits to the credit of and withdrawals from each special Fund and Account created under the provisions of the Resolution, (d) the details of all Bonds issued, paid, purchased or redeemed, (e) a balance sheet as of the end of such three-month period, and (f) the amounts On deposit at the end of such three-month period in each bank or trust company and the Security held therefor. The City further covenants that w~thin six months after the close of each Fiscal Year it will cause an, audit to be completed of its books and accounts pertaining to the Water and Sewer Utilit~ by the Accountant. Reports of each such audit shall be filed with the City Council, the City Manager and the Director of Finance, and copies of such report shall be mailed to any Owner who shall have filed his name and address with the City Clerk for such purpose. M~ndatorv Connections. The City will, to the full extent permitted by law, require 'all la~ds, buildings and structures, within the City's service area, fronting or abutting on the lines of the Water and Sewer Utility, or any part thereof, or which can use the facilities of the Water and Sewer Utility to connect with and use such facilities within ninety (90) days after notification that service is available. The City will not grant a franchise for the operation of any competing water system or sewer system so long as any Bonds are outstanding hereunder. Subordinate Oblioations. Notwithstanding any other provision of the Resolution, the City may issue obligations or incur indebtedness other than the Bonds and a State Loan from time to time which are payable in whole or in part from the Revenues, but only if such obligations are, by their terms, subordinate in Fight to palanent from the Revenue to all Bonds and any such State Loan theretofore or thereafter issued or incurred under the provisions of the Resolution. NO Free Service. The City will not render or cause to be rendered any free services of any nature by the facilities of the Water and Sewer Utility nor will any preferential rates be established for users of the same class; the City including its departments, agencies and instrumentalities in the service area, shall avail itself of the facilities of the Water and Sewer Utility, and the smme rates, fees or charges applicable to other customers receiving like services under similar circumstances shall be charged to the City and any such department, agency or instrumentality. Such charges will be paid as they accrue, and the City shall transfer from its appropriate funds sufficient sums to pay such charges. Failure to Pay for Services. Upon failure of any user to pay for services rendered within ninety (90) days, the City shall shut off the connection of such user to the Water and Sewer Utility and shall not furnish him or permit him to B-18 receive further service until all obligations owed by him to the City on account of services shall have been paid in full. This covenant shall not, however, prevent the City from causing any connection to be shut off sooner. To the extent ~%rmitted by taw, the City shall not provide any water or sewer service to any new ~operty owner until such time as all delinquent charges owed for services rendered . such property are paid. Enforcement of Collections. The City will diligently enforce and collect the rates, fees and other charges for the services of the Water and Sewer Utility; will take all steps, actions and proceedings for the enforcement and collections of such rates, fees and charges as shall become delinquent to the full extent permitted or authorized by law; and will maintain accurate records with respect thereto. All such rates, fees, charges and revenues herein pledged shall, as collected be held in trust to be applied as provided in the Resolution and not otherwise. No Sale or Mortgaqe of Water and Sewer Utility. (a) The City covenants that so long as any Bonds shall be Outstanding under the-provisions of the Resolution and except as in the Resolution otherwise permitted, it will not sell, lease or otherwise dispose of or encumber the Water and Sewer Utility or any part thereof. The City may, however, from time to time, sell any machinery, fixtures, apparatus, tools, instruments, or other movable property acquired by it in connection with the Water and Sewer Utility, or any ma%erials used in connection therewith, if the City shall determine that such articles are no longer needed or are ao longer useful in connection with the construction or operation and maintenance of the Water and Sewer Utility, and the proceeds thereof shall he applied to the replacement of the properties so sold or disposed of or shall be deposited to the credit of the Mandatory Redemption Account .or the Renewal and Replacement Fund, at the option of the City. (b) Notwithstanding the provisions of paragraph (a) of this Section, the ~ty may from time to time sell, trade or lease such other property forming part of the Water and Sewer Utility as is not needed or serves no useful purpose in connection with the maintenance and operation of the Water and Sewer Utility and the proceeds of any such sale of property which is declared by resolution of the City Council to be unnecessary for the Water and Sewer Utility shall be deposited to the credit of the Mandatory Redemption Account or the Renewal and Replacement Fund, as may be provided by such resolution. The property received in exchange pursuant to any trade shall be deemed to be a part of the Water and Sewer Utility. The rentals under any such lease shall be deposited to the credit of the Revenue Fund. (c) Notwithstanding the provisions of paragraph (a) of this Section, the City may from time to time permanently abandon the use of, sell, trade or lease any property ferming a part of the Water and Sewer Utility but only if (1) there shall be filed with the City Clerk and the Director of Finance prior to such abandonment, sale or lease a certificate, signed by the City Manager and approved by.the Consulting Engineers, stating (A) that the City is not then in default in the performance of any of the covenants, conditions, agreements or provisiens contained in the Resolution, and B-19 (B) that the Net Revenues for the next preceding Fiscal Yeaz, after giving effect to such abandonment, sale or lease and any replacement and after adjustment to reflect the moneys which would have been received if the rate schedule in effect on the date of such certificate had been in effect throughout such Fiscal Year, are not less than one hundred twenty per centum (120%) of the maximum aggregate Principal and Interest Requirements for an~ Fiscal Year thereafter, and (2) the amount held for the credit of the Reserve Account is equal to the Reserve Account Requirement. The proceeds of the sale of any property forming part of the Water and Sewer Utility under the provisions of paragraph (c) of this Section shall either be deposited hy the City to the credit of the Mandatory Redemption Account or the Renewal and Replacement Fund, at the option of the City, or shall be applied to the replacement of the property so sold, and any property acquired as such replacement shall become a part of the Water and Sewer Utility subject to the provisions of the Resolution. The rentals under any such lease shall be deposited to the credit of the Revenue Fund. Right to Borrow from State. Notwithstanding anything contained in the Resolution, the City shall have the right from time to time to enter into State Loans pursuant to which the obligation of the City to repay the same will enjoy a claim on Revenues and Impact Fees by virtue of the loan being payable from deposits to the Loan Repayment Fund under Section 505 of the Resolution without limitation as to amount, provided that the City shall file with the City Clerk certificates similar in tenor to those furnished pursuant to clauses (c) and (dj of Section 208 of the Resolution and such certificates shall evidence compliance with the earnings test& set forth in said Section 208. For purposes of this Section and for the purpose of evidencing compliance with the tests set forth in said Section 208, the term "State Loan" shall be substituted for the term "Additional Bonds." Enforcement of Collections of Revenues and Imposition, Collection and Release of Impact Fees. The City covenants to enforce diligently its right to receive the Revenues and to enforce and collect the fees, rates, rentals and other charges for the use of the Water and Sewer Utility. The City will not take any action that will imoair or adversely affect its right to fix, charge, collect and receive the Revenues herein pledged or impair or adversely affect in any manner the pledge of Revenues made herein or the rights of the Owners or the State pursuant to a State Loan. Until the lien on Impact Fees created by this Resolution is released pursuant to this Section, the City shall maintain in sffect an ordinance pursuant to which it will establish just and equitable Impact Fees taking into account the recommendations of the Consulting Engineers. The City shall enforce diligently its right to impose and collect Impact Fees and shall diligently enforce and collect the same. The City shall not take any action that will impair or adversely affect its right to impose and collect Impact Fees as herein pledged or impair or adversely affect the pledge of the Impact Fees made herein or the rights of the Owners. Notwlthstandlng any other provisions in this Resolution, the City's obligation to impose, collect and apply Impact Fees in accordance with th~s Resolution shall B-20 terminate and the lien created by this Resolution on such Impact Fees shall be released as soon as the total amount of Bonds purchased, redeemed or paid at maturity from Impact Fees and the total amount of principal on State Loans retired ~--)m Impact Fees together with the amount of Impact Fees on deposit in the rate ~bilization fund pursuant to paragraph (A) of Section 514 and the amounts used to ~[mhurse the City pursuant to paragraph (B) of Section 514 equal the Expansion Project Percentage of the Original Debt Amount. Events of Def ult. Each of the following events is declared an "event of default," that is to say: If (a) payment of the principal and of the redemption premium, if any, of any of the Bonds shall not be made when the same shall become due and payable, either at maturity or by proceedings for redemption or otherwise; or (b) payment of any installment of interest on any of the Bonds shall not be made when the same shall become due and payable; or (c) payment of any amount required to satisfy any Mandatory Amortization Requirement shall not be made, if required herein; or (d) payment of any required deposit to the Loan Repayment Fund shall not be made which shall have the effect of the City not being able to make an Annual Loan Payment; or (e) the City shall for any reason be rendered incapable of fulfilling its obligations under the Resolution; or .... (f) any part of the Water and Sewer Utility necessary for its effective ~ration shall be destroyed or damaged and shall not be properly and timely ~_3aired. replaced or reconstructed; or (g) final judgment for the payment of money shall be rendered against the City as a result of the ownership, control or operation of the Water and Sewer Utility and any such judgment shall not be discharged within sixty (60) days from the entry thereof or an appeal shall not be taken therefrom or from the order, decree or process upon which or pursuant to which such judgment shall have been granted or entered, in such manner as to stay the execution of or levy under such judgment. order, decree or process or the enforcement thereof; or (h) if the City admits in writing its inability to pay its debts generally as they become due, or files a petition in bankruptcy or makes an assignment for the benefit of its creditors or consents to the appointment of a receiver or trustee for itself or for the whole or any part of the Water and Sewer Utility; or (i) if the City is adjudged insolvent by a court of competent jurisdiction, or it be adjudged a bankrupt on a petition in bankruptcy filed against the City, or an order, judgment or decree be entered by any court of competent jurisdiction appointing, without the consent of the City, a receiver or trustee of the City or of the whole or any part of its property and any if the aforesaid adjudications. orders, judgments or decrees shall not be vacated or set aside or stayed within ninety (90) days from the date of entry thereof; or B-21 (j) if the City shall file a petition or answer seeking reorganization or any arrangement under the Federal bankruptcy laws or any other applicable law or statute of the United States of America or any state thereof; or (k) if, under the provisions of any other law for the relief or aid of debtors, any court of competent jurisdiction shall assume custody or control of the City or of the whole or any substantial, part of its property~ and such custody or control shall not be terminated within ninety (90) days from the date of assumption of such custody or control; or (1) the City shall default in the due and punctual performance of any other of the covenants, conditions, agreements and provieions contained in the Bonds or in this Resolution On the part of the City to be performed and such default shall cont~inue for-thirty (30) days after written notice specifying such~ default and requiring s~me to be remedied shall have been given to the City by the Owners of not less than twenty-five per centum (25%) in aggregate principal amount of the Bonds then outstanding. Pa_vment of Defaulted Interest. Any interest on any Bond that is payable, but is not punctually paid or duly provided for, on any Interest Payment Date ("Defaulted Interest") shall forthwith cease to be payable to the Holder as of the relevent Regular Record Date solely by virtue of such Holder's bavi~g been such Holder on such Date; and such Defaulted Interest may be paid by the City, at its election in each case, as provided in subparagraph A or B below: A. The City may elect to make payment of any Defaulted Interest on the Bonds to the persons in whose names such Bonds are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest. which Special Record Date shall be fixed in the manner specified in the Resolution. B. The City may make payment of any Defaulted Interest on the Bonds in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Bonds may be listed and upon such notice as may be required by such exchange, if, after notice given by the City to the Bond Registrar of the proposed payment pursuant to this subparagraph, such payment shall be deemed practlcable by the Bond Registrar. Acceleration of Maturities. Upon the happening and continuance of any event of default specified in clauses (a) through (1) above, then and in every such case the Owners of not less than twenty-five per centum (25%) in aggregate principal ~mount of the Bonds then outstanding shall, by a notice in writing to the City, declare the principal of all of the Bonds then outstanding (if not then due and payable) to be due and payable immediately, and upon such declaration the same shall become and be immediately due and payable, anything contained in the Bonds or in this Resolution to the contrary notwlthstanding; provided that if at any time after the principal of the Bonds shall have been so declared to be due and payable, and before the entry of final ~udgment or decree in any suit, action or proceeding instituted on account of such default, or before the completion of the enforcement of any other remed~ under this Resolution, moneys shall have accumulated in the Sinking Fund sufficient to pay the principal of all matured 8onds and all arrears of interest, if any, upon all Bonds then outstanding (except the principal of any Bonds not then due except by virtue of such declaration and the interest accrued on B-22 such Bonds since the last interest payment date), and al/ amounts then payable by the City under the Resolution shall have been paid or a sum sufficient to oay the same shall have been deposited by the Director of Finance or with the Bond ~'~istrar. and every other default in the observance or performance of any ,chant. condition, agreement or provision contained in the Bonds or in the ;olution (other than a default in the payment of the principal of such Bonds then ~ onl~ remedied, per centum of the Bonds not then due except b~ virtue of I shall, by written notice to the City. rescind and its consequences, but no such rescission or or affect any subsequent default or impair any right then and (25%) in aggregate pz such declaration and and a~nul annulment shall extend conseguent thereon. centu~ (25%] shal 1 ~ proceed to · hy law, the Resolution or in and continuance of any event of of not less than twenty-five per of the Bonds then outstanding under :he rights of the Owners under Florida law, or special proceedings in equltylor at - ' covenant or agreement contained in on of any.power granted in the Resolution or for the enforcement of equitable remedy, as such Owners shall deem most effe6tual to such rights and including the rights to appointmgnt of e receiver of the Water and Sewer Utility in an appropriate judicial proceeding in a court of competent ~urisdiction. Pro Rata Application of Flm~. If at any time the moneys in the Sinking Fund shall not be sufficient to pay the principal of or the interest on the Bonds as.the ~e become due and payable, such moneys, together with any moneys then available ¢ thereafter becoming available for such purpose, shall be applled as follows: (a) Unless the principal of all the Bonds shall have become due and payable or shall have been declared due and payable, all such moneys shall be applled first: to the payment of the persons entitled thereto of all installments of interest then due and payable on the Bonds, in the order in which such installments become due and payable, and, if the amount available shall not be sufficient to pay in full, any particular installment, then to the pal;ment rs=ably, according to the amounts due on such installment, to the persons entitled thereto, without any discrimination or preference except as to any difference in th~ respective rates of interest specified in the Bonds; second: to the payment of the persons entitled thereto of the unpaid principal of any of the Bonds which shall have become due (other than Bonds called for redemption for the payment Of which sufficient moneys are held pursuant to the provisions of the Resolution), in the order of their due dates, with interest upon such Bonds at the respective rates specified therein from the respective dates upon which they became due, and, if the amount available shall not be sufficient to pay in full the principal of Bonds due on any particular date. together with such interest, then to the payment first o~ such interest, ratably according to the amount~ of such interest due on such date. and then to the payment of such B-23 principal, ratably according to the amount of such principal due on such date, to the persons entitled thereto without any discrimination or preference except as to any differenca in the respective rates of interest specified in the Bonds: and third: to the payment of the interest on and the principal of the Bonds, to the purchase and retirement of Bonds and to the redemption of Bonds, all in accordance with the provisions of Article V of tbs Resolution. (b) If the principal of all the Bonds shall have become due and payable or shall have been declared due and payable, all such moneys shall be applied to the payment of the principal and interest then due and unpaid upon the Bonds, without preference or priority of principal over interest or of interest over principal or of any installment of interest over any other installment of interest, or of any Bond over any other Bond; Tatably, according to the amounts due respectively for principal and interest, to the persons entitled thereto without any discrimination or preference except as to any difference in the respective rates of interest specified in the Bonds. (c) If the principal of all the Bonds shall have been declared due and payable and if such declaration shall thereafter have .been rescinded and annulled under the provisions of se=rich 803 of the Resolution, then, subject to the provisions of paragraph (b) of this Section in the event that the principal of all the Bonds shall later become due or be declared due and payable, the moneys remaining in and thereafter accru/ng to the Sinking Fund shall be applied in accordance with the provisions of paragraph (a) of this Section. Restriction on Individual Owner Actions. No Owner of any of the Bonds shall have any right in any manner whatever by' his or their action to affect, disturb or prejudice the security of this Resolution, or'to enforce any right h~reunder except in the manner herein provided, and all such proceedings at law or in equity shall be instituted, had and maintained for the benefit of all Owners of such Bonds and coupons. No Remedy Exclusive. No remedy conferred upon the Director of Finance On behalf of the Owners is intended to be exclusive of any other remedy or remedies provided in the Resolution, and each and every such remedy ~hall be cumulative and shall be in addltlon to every other remedy given in the Resolution. Sunplemental Resolution Without Bondholders' Consent. The City Council, from time Ko time and at'any time may adopt such resolutions supplementsl to the Resolution as shall not be ineonslstent with the terms and provisions thereof (which supplemental resolution shall thereafter form a part thereof): (a) to cure an~ ambiguity or formal defect or omission or to correct any inconsistent provisions in the Resolution or in any supplemental resolution, or (b) to grant to or confer upon the Owners any additional rights, remedies, powers, authority or security that may lawfully be granted to o~ conferred upon the Owners, or (c) to add to the conditions, limitations and restrictions on the issuance oX Bonds under the provisions of the Resolution other conditions, limitations and restrictions thereafter to be observed, or B-24 (d) to add to the covenants and agreements of the City in the Resolution other covenants and agreements thereafter to he observed by the City or to surrender any right or power therein reserved to or conferred upon the City, or (e) to authorize the issuance of any Additional Bonds or Refunding Bonds __~rsuant to Sections 208 and 209 of the Resolution or the incurrence of any indebtedness contemplated by Section 513(c), Section 717 and Section 718 of the Resolution, provided all conditions precedent to such issuance or incurrence are met; or (f) to authorize the issuance hereunder of Bonds in bearer form with coupons representing interest attached thereto in the manner customary prior to July 1, 1983. Supplemental. Resolution With Owner Consent. Subject to the terms and provisions co~talned in this Section, and not the Owners of not less cent ~ amount of the Bonds then the right, from time to time, anything contained in the the contrary notwithstanding, tO consent to and approve the adoption of such reso!ut=on or ~..o%utions supplemental t~..ereto as sba/1 ~% deemed necessary or desirable by the City for the purpose of modifying, altering, ~mending, adding 5o or rescinding, in any particular, any of the terms or provisions contained in 27 Reso!ation or in any supplemental resolution; provided, however, that nothing all per.mit, or be construed as .permitting, (a) an extension of the maturity of the.~ principal..°f or the~ interest on any Bond issued hereunder, or ( ) ab reduction ~n the l~r~nc~pal amount of any Bond or the redemption premium or the rate of interest thereon, or (c) the creati ' - on of s lxen upon or a pledge or Revenues or Impact Fees other than the lien and pledge created by the Resolution, or (d) a ~eference or priority of any Bond or Boads over any other Bond or Bonds, or (e) a of the Bonds required for consent to duction; in the aggregate principal amount ~ch supplemental resolution or (f) a change in anv State Loan which is adverse to the interests of the Bondholders. Cessation of Interest of Bondholders. If, when the Bonds shall have become due and payable in accordance with their terms or shall have been duly called for redemption or either irrevocable instructions to call the Bonds for redemption or to pay the Bonds at their respective maturities and mandatory redemption dates or any combination of such payment and redemption shall have been given by the City to the Director of Finance, the ~hole amount of the principal and the interest and premium, if any, so due and payable upon all of the Bonds and coupons then Outstanding shall be paid or sufficle~t moneys, or ~overnment Obligations, not callable at the option of the obligor, either the principal of and the interest on which when due or the principal of which when due will provide sufficient moneys, shall be held by an appropriate fiduciary institution acting as escrow agent (the "escrow agent") for such purpose under the provisions of the Resolution, and provision shall also be made for paying all other sums payable thereunder by the City, then and in that case the right, title and interest of the Owners in the Revenues, Funds and Accounts mentioned in the Resolution shall thereupon cease, determine and become void, and the City Council in such case, shall repeal and canceI the Resolution and may apply any surplus in any account in the Sinking Fund and all balances remaining in any other Funds or Accounts other than moneys held for the redemption or payment of Bonds or coupons to any lawful purpose of the City ~ the City Council shall determine. B-25 Insurance Provisions. (a) Consent of AMBAC Indemnity. Any provision of the Resolution expressly recognizing or granting rights in or to AMBAC Indemnity may not be emended in any manner which affects the rights of AMBAC Indemnity thereunder without the prior written consent of AMBAC Indemnity. (b) Consent of AMBAC Indemnity in Addition to Owner Consent. Unless otherwise provided in Section 12 of the Resolution, AMBAC Indemnity's consent shall be required in addition to Owner consent, when required~ for the following purposes: (i) execution and delivery of any resolution supplementary or amendato~y to the Resol~tlon a~d (ii) initiation or approval of any action not described in (i) above which requires Owner consent. (c) Consent of AMBAC Indemnity Upon Default. Anything in the Resolution to the of default" control and of ail rights and r~medies granted to the Owners of the Series 1990 er the Resolution includSng, without" limitation, acceleration of the principal of the Series 1990 Bonds as described in .the Resolution and the right to annul any declaration of acceleration~ and the right to waive any event of default. (d) Notices to be Given to AMBAC Indemnity. While the Municipal Bond Insurance Policy is in effect, the Issuer shall furnish to AMBAC Indemnity: (a) as soon as practicable after the filing thereof, a copy of any financial statement of the Issuer and a copy of any audit and annual report of the Issuer; (b) a =opy of any notice to be given to the registered owners of the Series 1990 ~onds, including, without limitation, notice of any redemption of or defeasance of Series 1990 Bonds, and any certificate rendered pursuant to the Resolution relating to the security for the Series 1990 Bonds; and (c)such additional information as it may reasonably request. The Issuer will permit AMBAC Indemnity to discuss the affairs, finances and accounts of the Issuer or any information AMBAC Indemnity may reasonably request regarding the security for the Series 1990 Bonds with appropriate officers of the Issuer. The Issuer will permit AMBAC Indemnity to have access to the Project and to have access to and to make copies of all books and records relating to the Series 1990 Bonds at any reasonable time. AMBAC Indemnity shall have the right to direct an accounting at the Issuer's expense, and the Issuer's failure to comply with such dlre=tien within thirty (30) days after receipt of written notice of the direction from AMBAC Indemnity shall be deemed a default under the Resolution; provided, however, that if compliance cannot occnr within such period, then such period will be extended so long as compliance is begun within such period and diligently pursued, but only if such extension would not materially adversely affect the interests of any Owner of the Series 1990 Bonds. B-26 Notwithstanding any other provision of the Resolution, the Issuer shall immediately notify AM~AC Indemnity i~ ~t any time there are insufficient moneys to make any pala~ente of princlpal and/or interest on the Series 1990 Bonds m"-.required, and immediately upon the occurrence of any event of default thereunder. (e) Defeasance of Series 1990 Bonds. In the event that the principal an-d/or interest due on the Series 1990 Bonds shall be paid by AMBAC Indemnity pursuant to the Municipal Bond Insurance Policy, the Series 1990 Bonds shall remain Outstanding for all purposes, shall not be defeased or otherwise satisfied and shall not be considered paid by the Issuer, and the assiqnment_ and pledge of the amounts pledged to repayment of the Series 1990 Bonds and all covenants, agreements and other obligations of the Issuer to the Ownere shall continue to exist and shall run to the benefit of AMBAC Indemnity, and, AMBAC Indemnity shall be subrogated to the rights of such Owners. (f) Payment Procedure Pursuant to Municipal Bond Insurance Policy. As long as the Municipal Bond Insurance Policy shall be in full force and effect, the Issuer and any Paying Agent agree to comply with the following provisions: (a) At least five (5) days prior to all Interest Payment Dates the Issuer or Paying Agent will determine whether there will be sufficient funds in the funds and accounts established pursuant to the Resolution to pay the principal of or'interest on the Series 1990 Bonds on such Interest Payment Date. If the Issuer Or? Paying Agent determines that there wil~ be insufficient funds in such funds or accounts, the Issuer or Paying Agent shall so notify AMBAC Indemnity. Such notice sb~ll specify the amount of the anticipated deficiency, the Series 1990 Bonds to wh~th such deficiency is applicable and whether such Series 1990 Bonds will he deficient as to principal or interest, or both. If the Issuer or Paying Agent has ~ so notified AMBAC Indemnity five (5) days prior to an Interest Payment Date, ; AC Indemnity will make payments of principal or interest due on the Series 1990 ~ ~ds on or before the fifth {Sth) day next following the date on which AMBAC Indemnity shall have received notice of nonpayment from the Issuer or Paying Agent. (b) The Issuer or.Paying Agent shall, after giving notice to AMBAC Indemnity as provided in (a) above, make available to AMBACIndemnity'' and, at AMBAC Indemnity's direction, to the United States Trust Company of New York, as insurance trustee for AMBAC Indemnity, or any successor insurance trustee (the "Insurance Trustee"), the registration books of the Issuer maintained by the ~egietrar or Pa~ing Agent and all records relating to the funds and accounts maintained under thei Resolution. (c) The Issuer or Paying Agent shall provide AMBAC Indemnity and the Insurance Trustee with a llst of Owners of Series 1990 Bonds entitled to receive pripcipal or interest payments from AMBAC Indemnity under the terms of the TMu~cipal'~ Bond Insurance Policy, and shall make arrangements with the Insurance rustee (~) to mail checks or drafts to the Owners of Ser~es 1990 Bonds entitled to receive full or partial interest payments from AMBAC Indemnity and (ii) to pay principal upon Series 1990 Bonds surrendered to the Insurance Trustee by the Owners A/4~c°f 'i~eriesindemnity.1990 Bonds entitled to receive full or partial principal pal~ments from 8-27 (d) The Issuer or Paying Agent shall at the time it provides notice to AMBAC Indemnit~ pursuant to (a) ~bove, notify Owners of Series 1990 Bonds entitled to receive the payment of principal or interest thereon from AMBAC Indemnity (1) as to the fact of such entitlement, (ii) that AMBAC Indemnity will remit to them all or a part of the interest payments next coming due upon proof of Owner entitlement to interest pa!nnents and delivery to the Insurance Trustee, in form satisfactory to the Insurance Trustee, of an appropriate assignment of the Owner's right to payment, (iii) that should they be entitled to receive full payment of principal ~rom ~MBAC's Indemnity, the~ must surrender their Series 1990 Bonds (along with an appropriate instrument of assignment in form satisfactory to the Insurance Trustee to permit ownership of such Series 1990 Bonds to be registered in the name of AMBAC Indemnity) for payment to the Insurance Trustee, and not the Issuer or Paying Agent, ~md (iv) that should they be entitled to receive partial payment of principal from AMBAC Indemnity, they must surrender their Series . ~ thereon first to the Paying Agent who shall note On such Series 19~ portion of the principa~ paid b~ the Paying in form Agent and then, along with an appropriate instrument of assig.n~.ent will then satisfactO ~ to the Insurance Trustee, to the Insurance Trustee, which pay the unpaid portion of principal. (e) In the event that the Issuer or Paying Agent has notice that any payment of principal of or interest on a Series 1990 Bond which has become Due for Payment (as defined in the Municipal Bond Insurance Policy) and which is made to an owner by or on behalf of the Issuer has been deemed '% preferential transfer and theretofore recovered from its owner pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in accordance with the final, nonappealable order of a court having competent jurisdiction, the Issuer or Paying Agent shall, at the time AMBAC Indemnity is notified pursuant to (a) above, notify all owners that in the event that any Owner's payment is so recovered, such Owner will b~ entitled to payment from AMBAC Indemnity to the extent of such recovery if sufficient funds are not ~otherwlse available, and the 'Issuer or Paying Agent shall furnish to AMBAC Indemnit~ its records evidencing the payments of principal of and interest on the Series 1990 Bonds which have been made by the Issuer or Paying Agent and subsequently recovered from owners and the dates on which such payments were made. (f) In addition to those rights granted AMBAC Indemnity under the Resolution, AMBAC Indemnity shall, to the extent it makes payment of or interest on Series 1990 Bonds, become subrogated to the rights of of such payments in accordance with the terms of the Municipal Policy, and to evidence such subrogation (1) in the case of sub~ claims for past due interest, the Registrar or Paying Agent sha] Indemnity's rights as subrogee on the registration books of the Iss~ by the Registrar or Paying Agent upon receipt from AMBAC Indemnity o~ payment of interest thereon to the owners of the Series 1990 Bonds, a: case of subrogation as to claims for past due principal, the Regis~ Agent shall note AMBAC Indemnity's rights as subrogee on the registr~ the Issuer maintained by the Registrar or Paying Agent, if any, upo] the Series 1990 Bonds by the Owner~ thereof together with proof of principal thereof. principal of ,he recipients ~nd Insurance ~gation as to 1 note AMBAC ~r maintained proof of the ~d (ii) in the rat or Paying ~tion books of [ surrender of ~e payment of 083090-3 4597M B-28 Special Provisions Relative to Series 1990 Bonds. (a) Notice of Redemption. With respect to the Series 1990 Bonds, the following requirements relating to redemption notices shall apply in addition to the requirements set forth in Article III of the Resolution: Notice of redemption of Series 1990 Bonds shall be given by first class mail, postage prepaid, not less than thirty {30} nor more than sixty (60) days prior to the date flxed for redemption to the Owners of the Series 1990 Bonds designated for redemption at their addresses appearing on the registration books for the Series 1990 Bonds on the 5th Business Day prior to the date of such mailing. Any notice mailed as provided above shall be effective, whether or not received by the Owner, and the failure to properly mall any such notice to any Owner shall not affect the validity of the proceedings for redemption of any Series 1990 Bond as to which notice was properly given. In addition, further notice of redemption shall be given as provided below, but a failure to give such further notice of redemption shall not affect the validity of redemption of any Series 1990 Bond if a notice is mailed to the Owner as provided above. Such further notice of redemption shall be given by certified mail, return receipt reguested, at least thirty (30) and not more than sixty (60) days prior to the date fixed for redemption to (i) all registered securities depositories that are registered Owners of Series 1990 Bonds (such depositories now being Depository TruSt Company of New Yor~, New York, Midwest Securities Trust Company of Chicago, Illinois, Pacific Securities Depository Trust Company of San Francisco, California, and Philadelphia D~pository Trust Company of Philadelphia, Pennsylvanla), (ii) at least two national information services that disseminate notices of redemption of obligations such as the Series 1990 Bouds (such as Kenney Information Systems Notification Service, Financial Information, Inc.'s Daily Called Bond Serice, Interactive Data Corporation's Bond Service, Moody's Municipal and Government News Report, and Standard and Poor's Called Bond Record), and (iii) Owners of $1,000~000 or more in aggregate principal amount of Series 1990 Bonds. Notice of redemption to securities depositories shall be given in sufficient time so that such notlUe is received at least two (2) days before the date of mailing to the Owners as provided above. The notice described in (i) and (iii) above need not be given for so long as Cede & Co. is the Owner of all Series 1990 Bonds. A second notice of redemption shell be given, within sixty (60) days after the redemption date, by registered mail to Owners of redeemed Series 1990 Bonds which have not been presented for payment within thirty (30) days after the redemption date. Each notice of redemption shall state, in addition to the information elsewhere required hy the Resolution, the name of the Series 1990 Bonds, the CUSIP numbers, certificate numbers, amounts called of each certificate (for partial redemptions), the publication date, the date of issue, the interest rate, the maturity date, the redemption date and price, the place or place of redemption, and the name and address of a contact person together with telephone number. (b) N '_e f R f_nTin.. If any of the Series 1990 Bonds are to be redeemed pursuant to an advance refunding, notice of such advance refunding and pending redemption shall be given in the manner provided in Section 1101 of the Resolution B-2g and in addition the notice shall be given in the same manner and to the same persons entltled to receive notice of redemption as provided above, all within sixty.(6~) days after the date of such advance refunding. (C) ~a?meRt of Series 1990 Bonds. Upon the written request of an Owner of at least $1,000,000 in prlncipal amount of Series 1990 Bomds, received by'the Issuer at leasU fifteen (15) Business Days prior to the date on which an~ payment of principal or interest on the Series I990 Eonds shall be due, such payment shall be paid by wire transfer in immediately available funds to an account designated by such Owner. Each check or other transfer of funds issued or made for the purpose of payment of principal, premium, if any, and/or interest on Series 1990 Bonds shall bear a CUSIP number identifying, by issue and maturity, the Series 1990 Bonds to which such payment relates. (d) Non-Presentment of Series 1990 Bonds. With respect Bonds, Section 515 of the Resolution shall be supplemented by following covenant of the Issuer: to the Series 1990 the addition of the Notwithstanding the preceding sentence, any moneys so set aside or deposited by the Director of Finance and which shall remain unclaimed by the Owners of Series 1990 Bonds shall not be paid to the City or any officer, hoard or body as provided ~bove, until at least one (1) year after the date of original scheduled maturity of the Series 1990 Bonds for which such money has been set aside or deposited. (e) Financial ReDortlna and Notice of Default. For purposes of this paragraph, and this paragraph only, the term ~'Owner" shall include any person or entity that claims in writing delivered to the Issuer to be the Owner Of a Series 1990 Bond (or a beneficial owner of a Series 1990 Bond, in the event that all or a part of the Series 1990 Bonds are registered in the name of a depository institution). The annual audit of the books and accounts pertaining to the Water and Sewer Utility, as further described in Section 710 of the Resolution, shall be mailed to any Owner of a Series 1990 Bond without charge upon written request. In addition, the Issuer will make available to any Owner of a Series 1990 Bond. without charge upon written request, information concerning the outstanding balance of Series 1990 Bonds by maturity, and a history of the redemption of any Series 1990 Bonds, including the respective redemption date, amounc, source of funds and allocation of the Series 1990 Bonds redeemed among all Series 1990 Bonds. In the event the Issuer or any Paying Agent has notice that a Event of Default has Occurred or that an event has occurred which, with the passage of ~ime or the giving of notice, or both, would constitute an Event of Default, then the Issuer or Paying Agent, as the case may be, will, within thirty (30) days~ give written notice thereof by first class mail to the Owners of the Series 1990 Bonds then Outstanding. B-30 APPENDIX C GENERAL PURPOSE FINANCIAL STATEMENT OFTHE CITY OF BOYNTON BEACH, FLORIDA FOR THE YEAR ENDED SEPTEMBER 30, 1989 General Purpose Financial Statements and -'~ Supplemental Financial Information CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 FINANCIAL SECTION Report of Independent Auditors General Purpose Financial Statements Combined Balance Sheet-All Fund Types and Account Groups Comb. lned Statement of Revenue, Expenditures and Changes m Fund Balance--All Governmental Fund Types and Expendable Trust Funds Combined Statement of Revenue, Expenditures and Changes in ~nd Balaa~ce-~Budget and Actual--General Fund and Other vernmental Fund Types for Which Annual Budgets Have Been Legally Adopted Combined Statement of Revenues, Expenses and Changes in Retained E~rning/Fund Balance--Proprietary Fund Types and pension T~u~i Funds . ' Combined Statement of Changes in Financial Position-- Proprietary Fund a,nd Pension Trust Funds Notes tO Finan[iat Statements Page Number 11 2 6 12 14 Enterprise Funds Combining Balance Sheet 69 70 Combining Statement of Reven.ue, Expenses and Changes in Retained Ea~nings (Deficit) Combining Statement of Changes in Financial Position 72 Schedule of Operation Expenses 73 75 Schedule of Changes in Property, Plant and Equipment 76 SchedUle of Revenue Bonds and Accrued Interest Payable 78 Note: Page 45 through, and including, page 68 are not included herein as these pages are not part of the General Purpose Financial Statements. Ernst &Young Report of Independent Anditors Certified Public Accountants Phillips Poin~ West Tower 777 S. F~ag~er Dr. Suite 1200 West Palm Beach Florida 33401 Teleohone (4073 655-8500 Fax: f46- 835-9563 The Honorable Mayor and City Commission City of Boynton Beach We have audited the accompanying general purpose financial statements of the City of Boy~on Beach, Florida as of September 30, 1989 and for the year then ended as listed in the table of contents. These financial, statements are the responsibility of the City's management. 0ur responsibility is to express an opinionon these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing stan- dards. Thosestandards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes ex.amining, on ? test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and signifi- cant estimates made by management, as well as evaluative the overall finan- cial s~atement presentation. We believe that our audit provides a reason- able basis for our opinion. In our opinion, the general purpose financial statements referred to above pre~ent fairly, in all material respects, the financial position of the City of BoYnton Beack, Florida at September 30, 1989 and the results Of its operations and changes in financial position of its proprietary fund types a~d pension~ tr~st funds for the year then ended, in conformity with gen- erally accepted accolnlting principles. As more fully described in Note Ts the City is a defendant in a lawsuit for negligence arid breach of contract involving the City Hall construction proj- ecg. The ~C~tyhas filed a counterclaim. The ultimate outcome of this litl- gat.ion dan/lot presently be determined. Accordi_ngly, no provision for any liability that may result has been made in the financial statements. Our audit ~as made fo~ ~the purpose of forming an opinion on the general put- ?os2 financial, statements taken as a whole. The supplemental financial ~nf~rmatrio5 listed, in the table of contents are presented for purposes of additiona~ analysis and are not a required part of the general p~rpose financial Statements of the City of ~o~ynton Beach, Florida. Such information has been subjected to the auditing procedures applied in our audi*t of the~general purpose financial statements and, in our opinion, is fairly stated .f~ al~ material respects in relation to the general purpose financial statements taken as a whole. January 19, 1990, except as to Note U, which is dated January 24, 1990 -1- ]0MBII~D BALANCE SHEET--ALL FUND TYPES AND ACCOUNT GROUPS CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 ASSETS Cash (overdraft) and cash equivalentsNote C Equity in pooled cash and investmentsNotes A and C Investments--Notes A and C Deferred compensation deposits Interest receivable Accounts receivable, net-- Note D Taxes receivable--Note A Less allowance for uncollect- ible taxes Other receivables Due from fiscal agent Due from other f~nds--Notes A and I Due from other governments-- Note E Note receivable Prepaid expenses--Note A Inventories--Note A Restricted assets--Note F Deferred charges--Note A Investment in Regional Waste- water Treatment Plant--Note G Property, plant and equipment-- Notes A and H Amount available in Debt Service Fund Amount to be provided for retirement of general long- {arm debt TOTAL ASSETS Governmental Fund Types Special Debt Capital General Revenue Service Projects 441,966 $ ~ ~ 5,001 381,384 2,106,809 2,249,2~9 9,582,417 452,383 138,680 138,680) 365,684 408,007 299,571 125,356 51,238 53,267 112,667 7,300 ~ 2.073.206~ $ 2.1~ _~J~l,8~ $ !0.047.10~ -2- Proprietary Fund Types Internal Enterprise Service Fiduciary Account Groups Fund Types General Total Trust and General Long-Term (Memorandum Agency Fixed Assets Debt Only) lO2)5 lO,OO0 27,413,178 1,255,926 1,594,332 143,676 $ $ $ 600,541 485,053 43,473,996 29,018,365 29,470,748 3,028~075 3,028,075 304,131 304,131 1,594,332 251,347 ( 138,680) 1,798 2,923 423,672 16,354 23,654 303,360 2,340 50 713,757 299,571 125,356 4,977 55,105 111,320 55,017 60,395 115,412 9,118,727 9,118,727 424,323 424,323 10,931,865 30,723,187 10,931,865 59,045,517 1,939,675 91,708,379 2,361,391 2,361,391 _ 28,983,671 28,983,671 & 108.~07,~ ~ ~ ~ ~ 31~345.067 ~ 223.925,588 ~"ee notes to financial snanements~ -~ontinued on next page. -3- COMBINED BALANCE SKEET--ALL FUND TYPES AND ACCOUNT GROUPS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA ;eptember 30, 1989 LIABILITIES AND FUND EQUITY Liabilities Deficit in pooled cash and investments-- Notes A and C Accounts payable Accrued payroll and payroll liabilities Escrow deposits Refundable deposits Other payables Due to other funds--Notes A and I Due to plan participants--Note K Due to other goverrnnents Revenue collected in advance Contracts payable Liabilities payable from restricted assets Insurance claims payable--Note S Compensated absences payable Notes A and M Acc~-ued capital appreciation bond interest General obligation bonds payable--Note L Revenne bonds payable, net of current maturities and unamortized discount--Notes A and M Litigation settlement payable--Note U TOTAL LIABILITIES Fund Equity Investment in general fixed assets--Notes A and H Contributed capital--Notes A and N Retained earnings--Notes A and Q Reserved for revenue bond debt service Reserved for capital improvements Reserved for renewal and replacement Unreserved Fund balance--Note A Reserved for prepaid expenses Re~erved for long-term note receivable Reserved for encumbrances Reserved for debt service Reserved for donations Reserved for retirement benefits and employees' connributions--Note j Unreserved Designated for specific purposes and projects Undesignated TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY Governmental Fund Type__s Special Debt Genera] Revenue Service 277,080 37,184 505 96,638 356 19,681 139,497 15,854 303,360 338,948 237,856 408,007 1,409,233 465,228 505 51,238 125,356 43,387 97,693 2,361,391 346,299 602,865 1,091,98~ 663 9~_73 1,694,848 2,361,391 ~ ~L2.160,07~ ~ Capital Projects Fiduciary Proprietary Fund Types Fund Types Internal Trust and Enterprise Service A~enc¥ Account Groups General General Total Fixed Long-Term (Memorandum Assens Debt Only) 424,582 $ ~ 2,O89 1,115,566 1,100,849 52,056 476 32,021 2,272 340,278 1,229 399,505 3,540,152 663j850 891,437 20,480,784 391,244 31,381 6,303 2,390 3,028,075 1,540,624 27,450,t05 479,042 3,036,768 2,550,062 20,795,000 8,000,000 31,345,O62 426,671 2,5~9,543 131,763 19,681 479,775 15,854 713,757 3,028,075 3~S,9~8 239~085 399,505 3,540,152 391,244 3,245,293 891,437 20,795,000 20,480,784 8,000,000 65,726,567 53,446,774 137,222 30,723,187 30,723,187 53,583,996 2,544,567 87,170 2,946,838 22,432,094 2,708,975 2,5A4,567 87,170 2,946,838 25,1~1,069 51,238 125,356 a3,387 2,361,391 97,693 8,506,477 ~?~506,477 81,457~443 2,846,197 27,726,346 27,726,346 483,313 9,938,954 1,735,846 2,827,829 29,945,505 30,723,187 158,19~021 ~__~.lO1 $108~07,5a~/_ S~3.3252~ $~3~2,952~3J~ _~_ $~LI~L~5.06Z S223,9%i~52L~ e nones no financial suanemenn$. EXPENDITURES AND COMBINED STATEMENT OF REVENUE, CHANGES IN FUND BALANCE--ALL ~OVER~AL FUND TYPES AND EXPENDABLE TRUST FUNDS CITY OF BOYtNTON BEACH, FLORIDA Year Ended September 30, 1989 Revenue--Notes A and B Taxes Licenses and permits Intergovernmental Interest Charges for services Fines and forfeitures Developers' contributions Miscellaneous Expenditures--Notes A and B Current General government Public safety Public works Culture and recreation Special projects Capital outlay Debt service Principal retirement Interest and fiscal charges--Note P Bond issue cosns Other financing sources (uses) Operating transfers in Operating transfers out Bond proceeds Fund balance, October i, 1988 TOTAL REVENUE General 14,494,641 1,823,001 4,590,653 438,590 333,433 55,520 421,O77 22,156,915 5,837,283 12,770,084 845,123 3,538,949 1,073,095 769,365 TOTAL EXPENDITURES 24,833,899 REVENUE OVER (UNDER) EXPENDITURES ( 2,676,984 REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES FUND BALANCE, SEPTEMBER 30, 1989 2,237,274 ( 1,028,037 1,209,237 ( 1,467,747 2,131,72f -6- Governmental Fund Types Special Debt Gapital Revenue Service Projects Fiduciary Fund Types Expendable Trust ~ 825,1t0 ~ 1.955,493 ~ 684,332 122,318 153,273 1.064.395 175,007 106,565 32,544 21,029 250 28,000 5,859 981,287 2.108~766 1,748.727 335,395 Total (Memorandum Only) 17,959~576 1,823,001 4,590,653 1,953,583 439,998 88,064 49,029 427,186 27,331,090 1,505 327,243 64,622 555,000 1,423,673 391,865 1,980,178 589,422 128,588 4,127.736 13,449 9,979,973 1,545,018 442 14,315,544 467,287 1,312,410 1,543,499 5,082,448 1,400,338 833,987 --. 57,661 7-741 20% 555,000 1,423,673 57,661 13,891 ~4,961,034 ( 5,992.474) 321,504 ( 7,629,944) 791.489 560.661) 230,828 820,250 874,598 1.694,~4~ 176,690 2,381,194 5,586,647 ( 3,237,771) ( 45,000) ( 4,871,469) 2,371,905 2,371,905 176,690 1 515.32~ [ 45,000) 3,087,083 305,278 ( 4,477,146) 276.,504 ( 4,542,861) 2,056,113 12,983,623 1,942,655 t9,988,70~ ~6.477 ~ 2.219.159 e notes to financial aEanements. -7- COMBI~D STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE-- BUDGET AND ACTUAL--GENERAL FqJND AND OTHER GOVERNMENTAL FUND TYPES FOR W~ICH ANNUAL BUDGETS HAVE BEEN LEGALLY ADOPTED CITY OF BOYNTON BEACH, FLORIDA Year Ended September 30, [989 Revenua--Notes A and B Taxes Licenses and permits Intergovernmental Interest Gharges for services Fines and forfeitures Rents and royalties Miscellaneous Gra~t revenue TOTAL REVENUE Expenditures--Notes A and B General government Public safety Public works Culture and recreation Special pro3ects Debt serwlce Principal retirement Interest and fiscal TOTAL EXPENDITURES REVENUE OVER (UNDER) EXPENDITUP~ES Other financing sources (uses) Operating transfers in Operating transfers out REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES--BUDGETARY BASIS Fund balance, October 1, 1988 Net differences between GAAP and budgetary basis--Note B FUND BALAi~CE, SEPTEMBER 30, 1989 General Fund Budget Actual Variance Favorable (Unfavorable] 14,474s571 $ 14,494,641 $ 20,070 2,158,250 1,823,001 ( 335,249) 4,483,638 4,155,273 ( 328,365) 376,500 438,590 62,090 278,989 333,433 54,444 78,100 55,520 ( 22.580) 16,470 16,O86 ( 384) 59,600 233,298 173.698 2,750 435,380 43Z 630 21,928,868 21,985,222 56,354 5,972,195 6,173,605 ( 201,410) 12,987,445 12,775,617 211,828 914,866 846,292 68,574 3,865,770 3,703,456 162,314 431,931 (431,931) 23,740,276 23 930:g0% ~) ( 1,811,408) ( 1,945,679) ( 134,271) 1,913,000 1,913,000 672,I48) ~) 1 240 85~ 884,963 570.556) ( 1,060,716) 2,131~720 ( 407,03~) ( 355,889) ( 355,889) ~ 490.160) Special Revenue Fund Types Local Optlon gas Tax Fund, Special Tax Levy -- Publicity Pund and CommUnity RedeveloPment Fund Variance Favorable Budget Actual (Unfavorable) $ 865,139 $ 825,110 $( 40,029) Debt Service Fund Types Recreational and Municipal B~ach Debt Service Fund and Build,lng Improvement Debt Service F~nd Budget Actual $ 803,020 ~ 799,185 Variance Favorable (Unfavorable) 3,835) 31,670 54,220 22,550 25,500 41,003 15,503 2,000 5,859 3,859 898,809 885,189 ( 13,620) 828,520 840,188 11,668 1,090,894 294,410 796,484 1,090,894 294,410 796,484 ( 192,085) 590,779 782,864 215,000 215,000 613,520 613,020 828,520 828,020 12,168 5OO 5OO 12,168 355,283 791,489 ( 560,000) (560,661) ( 204,717) 230,828 436,206 ( 661) 435,545 396.802) 821,607 121,335 12,168 ~ 12~16Jt 367,568 ( 22,046) Continued on nexg page. -9- COMBINED STATEMENT OF REVEN0-E, EXPENDITURES AND CHANGES IN FUND BALANCE-- BUDGET AND ACTUAL--GENERAL FUND AND OTHER GOV]JRNMENTAL FUND TYPES ~?OR WHICH ANNUAL BUDGETS HAVE BEEN LEGALLY ADOPTED--CONTINUED ]ITY OF BOYI~ON BEACH, FLORIDA Year Ended September 30, 1989 Revenue--Notes A and B Taxes Licenses and permits Intergovernmental Interest Charges for services Fines and forfeitures Rents and royalties Miscellaneous Grant revemue TOTAL REVElkrOE Expenditures--Notes A and B General government Public safety Public works Culture and recreation Special pro~ects Debt service Principal retirement Interest and fiscal TOTAL EXPENDITURES REVENUE OVER (UNDER) EXPENDITURES Other financing sources (uses) Operating transfers in Operating transfers out REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES--BUDGETARY BASIS Fund balance, October 1, 1988 Net differences between GAAP and budgetary basis--Note B FUND BALANCE, SEPTEMBER 30, 1989 Budget Total (Memorandum Only) Variance Favorable Actual (Unfavorable) 16,142,730 ~ 16,118,936 3( 23,794) 2,158,250 1,823,001 ( 335,249) 4,483,638 4,155,273 ( 328,365) 433,670 533,813 100,143 278,989 333,433 54,444 78,100 55,520 ( 22,580) 16,470 16,086 ( 384) 6t~600 239,157 177,557 2,750 435,380 432,630 23,656,197 23,710,599 54,402 5,972,195 6,173,605 ( 201,410) 12,987,445 12,775,617 211,828 914,866 846,292 68,574 3,865,770 3,703,456 162,314 1,090,894 726,341 364,553 2t5,000 215,000 613,520 613,020 500 25.659.690 25,053,33t 606,359 ( 2,003,493) ( 1,342,732) 660,761 2,268,283 2,704,489 436,206 t,232,148 1,588,698 356,550 1,036,135 1,115,791 79,656 967.358) ( 226,941) ~ 7~0.417~ 2,620,623 ( 429,077) ~ 1~964.60~ -t0- JMBtNED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN STAINED EARNINGS/FUND BALANCE--PROPRIETARY FUND TYPES ~D PENSION TRUST FUNDS TY BOYNTON BEACH, FLORIDA ar Ended September 30, 1989 ~erating revenue Charges for services Contributions Intergovernmental Investment income >erattng expenses Operating expenses Depreciation and amortiza- tion-Note A Benefit payments R~fnnds i OPERATING INCOMM (LOSS) ~noperating revenue (expenses) Interest income Miscellaneous income Interest expense--Note P Fiscal agent's fees INCOMM (LOSS) BEFORE OPERATING TRANSFERS perating transfers in (out) Operating transfers in Operating transfers out NET INCOME ~ansfer of depreciation on contributed capital--~{ote A etained earnings/fund balance, October 1, 1988 ~=~ RETAINED EiRNINGS/FUND ~NCE, SEPTEMBER 30, 1989 Proprietary Fund Types Internal Enterprise Service Fiduciary Fund Type Pension Trust Total Memorandum Only) 17,734,909 $ 1,435,767 ~ $ 19,170,676 2,744,535 2,744,535 18,750 366,108 384,858 2,500,515 2,500~515 17,753,659 1,435,767 5,611,158 24,800,584. 12,297,409 1,529,186 126,236 2,805,944 643,195 858,461 123,741 15.103.353 2.172.381 1,108,438 2,650,306 ( 736,614) 4,502,720 13,952,831 3,449,139 858,461 123,741 t8,384,172 6,416,412 3,224,117 39,202 3,2637319 189,752 26,050 8,304 224,106 1,862,000) ( 1,862,000) 5,854) ( 5,854) 1,546,015 65,252 8,304 1,619,571 4,196,321 ( 671,362) 4,511,024 8,035,983 105,108 1,408,185 2,083,050) ( 145,421) ( 1,977,942) 1~262,764 ( 2,218,379 591,402 4,511,024 1,O61,432 74,294 24,730,858 2,043,279 23,215,322 1,513,293 2,228,471) 715,178) 7,320,805 1,135,726 49,989~459 5J~445,990 -11- it NOTES TO FINANCIAL STATEMENTS CITY OF BOYNTON BEACH, FLORIDA SeDtember 30, 1989 NOTE A--SIGNIFICANT ACCOUNTING POLICIES Reporting Entity: The City of Boynton Beach is a political subdivision of the St: of Florida and provides the full range of municipal services including public safe~ planning and ~oning, sanitation, highways and streets, recreation and park factltti¢ public impro~ements~ Water and seWer Service, and general administration fnnctto~ For financial mental · agencies, boards~ commiss the City's executive or ~ tively). Control by or dependence adoption of the City, obligation of significant subsidies from the rial component units for wh~ with pronouncements of the Gove~ the City includes all funds, account grout that are controlled by or dependent ~ (the mayor or the commission, respe the City was determined on the~ basis of bud~ or ~eneral obligati( deficits that m.~y occur or rece~ hess criteria, there are no pot~ exercises oversight responsibility. The~ fore, the reporting entity is tlmi~ed to those departments which comprise the Cit5 legally adoptedjurtsdictions. The South Central Regional Wastewater Treatment and Disposal Board (the Board) i~ dependent special district created by the Cities of Boynton Beach and Delray Beach operate a regional wastewater treatment facility. The Board's governing body is c prised of ~he City commissions of Boynton Beach and Delray Beach, and control oversight are exercised equally by both cities. The Board has been reported as joint venture using the equity method of accounting as discussed in Note G. Bases of Presentation: The financial activities of the City are recorded in separ funds and account' groups, categorized and described as follows: Governmental Funds General Fund--This fund is used to acconnt for ail 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--These 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 Funds--These funds are used to record the funding and payment of principal and interest on debt reported in the General Long-Term Debt Account Group. Capital Projecg Funds--These funds are used to construction of major capital facilities other eEary fnnd operations and special assessments. account for the acquisition or than those financed by propri- -14- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA ptember 30, 1989 NOTE A--SIGNIFICANT ACCOUNTING POLICIES--CONTINUED Proprietary Funds Enterprise Funds--These funds are used to account for operations that provide a service to citizens, financed primarily by a user charge and where the peri- income ia deemed aPprepriate for capital maintenance, public poll or other purposes. funds are used to account for the financing of goods or services by onedepartment or agency to other departments or agencies of t ~o other governmental Wits on a cost-reimbursement basis. :e F%nid accounts for th~ acquisition, operation and maintenance of' vehicles and heav~ equipment. The Self Insurance Fund accounts for workers' compensation insurance for the City's employees. Fund accounts for th~ inventory and disbursement of supplies. Fiduciary Funds ~ These f~ds, used to aecou/lt for assets held in trust for others, pension trust fl~lds~ expendable trust f~nds and an agency fund. Account Groups include the General .Fixed Assets Account Group--This account group presents the fixed assets of the City utilized in its general operations (nonproprietary fixed assets). General Long-Term Debt Account group--This account group is used to accol~lt for the outstanding principal balances of general obligation bonds and limited obligation bonds, and certificates not accounted for in proprietary funds. ~ases of AccountinK: 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 nor recorded at year end as meter readings are performed on a cyclical basis throughout the month, and unbilled usage is not determinable until ~eadings have been recorded. All other funds are accounted for using the modified-accrual basis of accounting where revenue is recognized when it becomes measurable and availakle. Expenditures are gen- erally recognized under the modified-accrual basis when the related fund liability is mncurred~ except for principal and interesg on general long-term debt which is recog- ~ged when due. -15- NOTES TO FINANCIAL STATEME~S--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE A--SIGNIFICANT ACCOUNTING POLICIES--CONTINUED Measurement Focus: The accounting and reporting treatment applied to a fund is deter mined by its measurement focus, Ail governmental funds and expendable trust funds ai accounted for on a spending or "financial flow" measurement focus. This means the only current assets and current liabilities are generally included on their balanc sheets. Governmental fnnd operating statements present increases (revenue and othe financing sources) and decreases (~pe~ditures and other financing uses) in net cur rent assets. All proprietary funds and pension trust fnnds are accounted for on a cost of service or "capital maintenance" measurement focus, This means that all assets and all lie bilities (~hether current or noncurrent) associated-with this activity are included c their balance sheets. Their reported f%md equity (net total assets) is segregate into contributed capital and retained earnings components. Proprietary f~nd tyt operating statements preset increases (reMenu~) and decreases (~xpenses) in nettota assets. Budgets and the Bndgettnz Process: The City follows these procedures in establishi~ the budge=ary data reflected in the financial statements: Prior to August 1,' the City manager s~bmits to the City commission a tenta- tive budget for consideration and approval. The budget is available to the public at this time. Informal budget workshops are held by the City commission to review the pro- posed budget and to obtain public comment. 3. The City advises the Palm Beach County Property Appraiser of the proposed m%llage 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. For budgetary purposes, current year encumbrances are treated as expendi- tures and any unencumbered budgetary appropriations lapse at fiscal year end. Changes or amendments to the total budgeted expenditures of the City or a department must be approved by the City commission; however, char~ges within a department which do non affect the department's total expenditures may be approved at the administrative level. There were no amendments to total budgeted expenditures or budgeted departmental expenditures. Unencumbered and unexpended appropriations lapse at fiscal year end. -16- NOTES TO FINANCIAL STATEMENTS--CONTINUED ~I~TY OF BOYNTON BEACH, FLORIDA ~tember 30, 1989 NOTE A--SIGNIFICANT ACCOUNTING POLICIES--CONTINUED The reported budgetary data represents the final appropriated budget after amendments adopted by the City commission. Appropriated budgets have been legally adopted for the General Fund, Local Optiou Gas Tax Fund, Special Tax Levy - Publicity Fund, Com- munity Redevelopment Fund (special revenue f ~, Recreational and Municipal Beach Debt Service on the same modif~ except 'amendments to a given department. Debt Service Fund (debt service funds) )enditures, amc treated as expendi- presented herein. There were no sear. However, there were changes within A nonappropriated budget is prepared for the Water and Sewer F~nd, Boynton Beach Recremtional Facilities Fund, Sanitation Fund and Vehicle Service Fund. The opera- tions of the Reserve for Parks and Recreation Facilities Fund (a special revenue fond), the Public Service Tax Debt Service F~nd, the Recreational and Municipal Beach ImProvement 'Fund (a capital projects fund), and all fiduciary fund types are nonbud- gMted ~inaneial a~tivities. I :umbran~es: Encumbrance accounting, under which purchase orders, contracts and let commitments for the expenditure of funds are recorded in order to reserve that ~.~£tion ~ the applicable appropriation, is employed~ as part of the budget accounting system in the general, special revenue and capital project funds. The City records encumbrances .as an appropriation of fund balance-until expended or accrued as a lia- bility of the fund. Equity in Pooled Cash and Investments: Equity in pooled cash and investments consists of cash and investments in U. S. Goverrunent securities held under repurchase agree- ments and the Io~al Eovernment pooled investment account administered by the State Board of Administration. Cash balances and requirements of all funds are considered in determining the amount to be invested. Interes5 earned on pooled cash and invest- ments is ~allocated to funds based on their average daily cash balances. The City ma{stains a ~500,000 compensating balance under the banking services agreement for the pooled cash and investments account. Investments: For all funds except the pension trust funds, investments consist of ~. S. ~overnment securities and time deposits. Investments of the pension trust funds consist of money market funds, mutual funds, U. S. Government securities, corporate bonds and common stocks. U. S. Government securities are reported Rt cost~ net of unamortized premi%lm and discount, which approximates market value. All other invest- ments are reported at cost. Purchases and sales of investments are recorded on the ~rade dates. Net realized gains and losses on sales of investments are reflected in currenu operating results as investment earnings. The deferred compensation deposits ~resent the assets of the deferred compensation plan which are held by an insurance ltpany and are invested in insurance con~rac~s that are reported at market alue. V -17- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE A--SIGNIFICANT ACCOUNTING POLICIES--CONTINUED Prepaid Expenses: Expenditures for insurance premiums and other administratlv~ expeDses e~tendtng over more than one accounting period are accounted for as prepata expenses and allocated between accounting periods. Inventories: Inventories are valued at cost which approximates market, using th~ first-in, first-out method. ~roDertv. Plant and Equipment: Assets acquired or constructed for general govern- mental services are recorded as expenditures in the fund making the expenditure anc capitalized at cost in the General Fixed Assets Account Group. Infrastructure asset: considered part of the public domain such as streets and sidewalks have also bee~ capitalized at cost in the General Fixed Assets Acconnt Group. No depreciation tf taken on general fixed assets. The assets of the proprietary funds are stated at cost or, if donated, fair marke- value at the date of dona~ion. Expenditures which materially extend the useful ltl of existing properties are capitalized. All costs relating to the construction o facilities are capitalized including salaries, employee benefits, bond costs an interest costs. Depreciation on plant and equipment is computed using the straight-line method ove the estima~ed useful lives of the related assets which are: Equipment Buildings and other improvements Water/sewer system 5 - 12 years 10 - 40 years 15 - 50 years Depreciation charges related to contributed capital are transferred to contribute capital. Ret ained Earnings Reserves: for the following: Retained earnings of the enterprise funds are reserve Revenue Bond Debt Service--Retained earnings of the Water and Sewer Fund and Bobrnton Beach Recreational Facilities Fund reserved for revenue bond debt service represent the excess of restricted assets required for debt service under bond covenants over the related liabilities payable from restricted assens. Capital Improvements--Retained earnings of the Water and Sewer Fund are reserved for capital improvements as sen forth by the related bond indenture. Renewal and Replacement--Retained earnings of the Water and Sewer Fund and the Boyanon Beach Recreational Facilities Fund reserved for renewal and replacement represent the excess of restricted assets required for renewal and replacement over the related liabilities payable from restricted assets. -18- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA ptember 30, 1989 NOTE A-~SIGNIFICANT ACCOUNTING POLICIES--CONTINUED Fund Balance Reserves: Fund balance reserves signify that a portion of the fund bal- ance is not to be considered as available for subsequent expenditure other than for the specific purpose for which the reserve was established. The following is a list of the reserves used by the City and a description of each: Reserved for Prepaid Expenses--An account used to segregate a portion of fund bal- ance to indicate that prepaid expenses do not represent available, spendable resources even though they are a component of assets. Reserved for Long-Term Note fund balance spendable resources ~d to segregate a portion of oes not represent available, it is a component of assets. Reserved for Encumbrances--An account used to segregate a portion of fund balance Ior exPenditure upon vendor performance on uncompleted purchase orders, contracts and other commitments. Reserved for Debt Service--An aecoumt used to segregate the portion of fund bal- ance that is legally restricted to the payment of debt service on the City's out- standing general obligation bonds. Reserved for Donations--An account used to segregate the portion of fund balance that is legally restricted by contract. Reserved for Retirement Benefits and Employees' Contributions An account used to indteate that the fund balance of the City's pension trust funds is legally restricted to the payment of pensions for Cit2 employees. These reserves signify that a portion of the fund balance of these funds is not to be considered as available for subsequent expenditure other than for the specific purpose of which the reserve was established. Designated Fund Balance: Fund balance designations indicate tentative managerial plans or intent to use financial resources in a future period. Undesignated Fund Balanc~: Undesignated fund balance indicates that portion of fund balance which is available for future use. Revenue Recognition: Ad Valorem Taxes--Ad valorem taxes are assessed as of January 1 and levied the following October. They are due March 31 and become delinquent and subject to lien on April 1. These taxes are collected by Palm Beach County and remitted To the City. Revenue is recognized at the time monies are received from Palm Beach County. At September 30, unpaid delinquent %~xes are reflected as a receivable on the balance sheet and are offset by an allowance for estimated uncollectibility. -19- NOTES TO FINANCIAL STATEMeNTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE A--SIGNIFICANT ACCOUNTING POLICIES--CONTINUED Other material revenue which is susceptible to accrual includes utilities taxes, franchise taxes, interest income, state revenue sharing and garbage/trash collec- tion income. Revenue which is not both available and measurable and is thus not susceptible to accrual include property taxes and occupational licenses. Grants: Federal .reimbursement-type grants are recorded as intergovernmental receiva- bles and reven~e when the r~lated expenditures/expenses are incurred. Amortization: Bond discounts and deferred issuance costs are being amortized using the straight-line method over the lives of the respective issues. Interfund Transactions: Following is a description of the basic type of interfund transactions made during the year and the related accounting policy: Operating Transfers--Transfers which, because of budgetary or legal restrictions, must be expended by funds other than the fund initially receiving ~he revenne. These transfers are recorded as operating transfers in (out) under the other financing sonrces (uses) category. Quasi-External Transactions--These transactions are revenue to the recipient fund and expenditures to the disbursing fund. These are transactions which would otherwise be recorded as revenue or expenditures 'if they were conducted with organizations external to the City. Reimbursements--These are transactions for services rendered or facilities pro- vided. These transactions are recorded as revenue in the receiving fund and expenditures tn the disbursing fund. Compensated Absences: Employees earn 1 day of vacation leave per month during their first year of employment and, based on a sliding scale, up to 25 vacation days annu- ally after 21 years of service. Employees may accumulate earned vacation leave up to a maximum of two years. Va~ation leave accrued in excess of this limitation is lost if not taken. Employees earn one day of sick leave per month and may accumulate al~l earned sick leave without limit. Upon retirement, death or termination, employees are compensated for all accrued vacation leave and one-half of accumulated sick leave at their current rate of pay. Except for liabilities incurred by retirement, death or termination, compensated absence benefits are paid only when taken. In the governmental funds, the amount of compensated absences recorded as expenditures is the amount accrued during the year that is expected to be liquidated with expenda- ble, available financial resources. The remaining liability is recorded in the Gen- eral Long-Term Debt Account Group. Compensated absences for the proprietary funds are accrued in the period earned. -20- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA Se ~mber 30, 1989 NOTE A--SIGNIFICANT ACCOUNTING POLICIES--CONTINUED Memorandum Only Columnm: information purposes only. cial statements. The columns entitled Total (Memorandum Only) are shown for These total columns do not represent consolidated finan- NOTE B--BUDGET AND ACTUAL COMPARISONS the other b~dgetary basis. follows: Generally accepted accounting principles (GAAP) require that the Statement of Revenue and ~ prepared nnder the basis of accounting used in i~d!cat~d in Note A, current year encumbrances are treated In addition, reserved/designated revenue and General Fund budget. As a result, the Gen- Fund revemue and expenditures reported in the amomnts reported on the GAAP basis. None differences between the GAAP basis and the , ~and GAAP basis differences can be reconciled as ~venue---GAAPbasis Reserved/designated revenue Nonbudgeted funds REVENUE BUDGETARY BASIS Expenditures GAAP basis Reserved/designated fund balance expenditures Prior year encumbrances paid in the current year Current year encumbrances outstanding at year end Nonbudgeted funds EXPENDITURES BUDGETARY BASIS Net differences between GAAP and budgetary basis Revenue Less nonbudgeted funds Operating transfer to reserve ~Expenditures Less nonbudgeted funds NET DIFFERENCES Special Revenue General Fund Funds 22,156,915 ~ 981,287 171,693) 96,098 24,833,899 ~ 391,865 925,833) 20,552) ( 22,046)' 43,387 ( 75,409) 23.930.90] ~ 294.410 171,693 ~ 96,098 96,098 171,693 324,274 902,998 9~,455 7~,40~ 902,998 2~,046 407.03]) ~( ~2 04~) -21- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE C--EQUITY IN POOLED CASH AND INVESTMENTS, AND CASH AND INVESTMENTS Equity in Pooled Cash and Investments--The City maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is dis- played on the combined balance sheet as "Equity in pooled cash and investments" or as Deficit in pooled cash and investments, where the fund has overdrawn its equity in the poot. In addition, hank deposits and investments are separa{ely held, by several of the City's fluids. The deposits an~ investments of tl~e pension trust ~unds are held separately from those of other City funds. The compoIients o,f pooled cash and invest- ments are identified and categorized on page 23 to give an indication of the level of risk assumed by the City at year end. Cash--At year end, theCity's total cash balance including unrestricted cash balances, amounts included in pooled cash and investments, and restricted cash balances as detailed on pages 23 and 24 was ~514,714. This includes ~2,596 in petty cash funds 9nd deposits with banks with a carrying amount of $$12,118 and a bank balance of $1,746,858. Of the bank balance of 31,746,858 and certificates of deposit of 53,636,514 reported as ~ at least $581,768 was covered by federal deposi- tory insurance, $4~'783,~ a collateral pool pledged to the State Treasurer of Florida by which comply with the requirements of Florida Statutes and as a qualified p~bltc depository ~y the State Treasurer of Florida was ur~ecured and uncollateralized. Qualified public depositories are required to Eledge collateral to the State Treasurer of Florida with a market value equal to 50% of the average daily balance of all government deposits in excess of any federal deposit ~nsurance. In the event of a default by a qualified public depository, all claims for government deposits would be satisfied by the State Treasurer of Florida from the proceeds of federal deposit insurance, pledged collateral of the public depository in default and, if necessary, a pro rata assessment to the other ~ualified public depositories participating in the collateral pool. Investments--Florida Statutes authorize the City and its pension trust funds to invest in the Local Government Surplus Funds Trust Fund administered by the State Treasurer of Florida; negotiable direct obligations of or obligations unconditionally guar- anteed by the U. S. Government~ interest-bearing time deposits or savings accounts in financial institutions located in Florida and organized under federal or Florida laws; obligations of the federal farm credit banks, the Federal Home Loan Mortgage Corporation, the Federal Home Loan Bank or its district banks; or obligations guar- anteed by the Government National Mortgage Association, obligations of the Federal National Mortgage Association and any additional investments specifically authorized by City Ordinance. Pension trust funds may also be invested in tax sale certificates of the State of Florida or any of its political subdivisions, preferred and common stocks of certain U. S. corporations, mutual funds and debt securities of certain U. S. corporations. The City's investmenns are categorized on page 23 to give an indication of the level of risk assumed by the City at year end. Category 1 includes investments that are -22- NOTES TO FINANCIAL STATEM~NTS--CONTINUED CIT~.~ OF BOYNTON BEACH, FLORIDA S¢ ~mber 30, 1989 NOTE C---EQUITY IN POOLED CASH AND INVESTMENTS, AND CASH AND INVESTMENTS--CONTINUED insured or registered~ or for which the securities are held by the CitF or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by a trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by a broker or dealer, or by a trust department or agent but not in the City's name. Category Carrying 1 2 3 Amount Market Value Pooled cash and invest- ments Repurchase agreement Investment in State Treasurer's ~=~ investment pool Cash Investments Money market fund U. S~ Government securities Corporate bonds Common stocks Mutual funds Certificates of deposit Deferred compensation deposits TOTAL POOLED CASH AND INVESTMENTS $ 5,951,719 946,376 6,664,166 7,570,887 500,000 6,538,446 TOTAL INVESTMENTS 475,000 ~ 475,000 49,026,047 49,026,047 ( 85,827) ( 85,827) 49,415,220 49,415,220 5,951,719 5,951,719 7,610,542 7,717,808 7,570,887 7,544,481 7,038,446 9,138,530 28,171,594 30,352,538 100,100 100,100 3,636,514 3,636,514 31,908,208 34,089,i52 _ 3,028,075 3,028,075 TOTALS -23- NOTES TO FINANCIAL STATEPIENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE C--EQUITY IN POOLED CASH AND I~v~ESTMENTS, AND CASH AND INVESTMENTS--CONTINUED Tke above amounts include nnrestricted and follows: Equity in pooled cash and investments Deficit in pooled cask and investments NET EQUITY IN POOLED CASH ANDINVESTMENTS Investments Cash Deferred compensation deposits Interest receivable Due from Regional Board restricted assens which are reconciled as Unrestricted Restricted Assets Assets Total 43,473,996 $ 6,367=895 $ 49,841,891 426,671 426,671 43,047,325 6,367,895 49,415,220 29.470.748 2,437,460 31,908,208 72,518,O73 8,805,355 81,323,428 600,541 600,541 3,028,075 3,028,075 76,821 76,821 236,551 236.551 TOTm~S ~ NOTE D--ACCOUNTS RECEIVABLE The accounts receivable and allowance for doubtful at September 30, 1989 are as follows: Gross receivables Less allowance for doubtful accounts accounts for the enterprise funds ~ 1,709,673 115,341 NET RECEIVABLES ~ 1.594.33~ NOTE E DUE FROM OTHER GOVERNMENTS Amounts due from other governments at September 30, Due from Palm Beach County for Community Development Block grants Emergency Medical Service grant School Crossing Guard Due from State of Florida for Human Relations Grant 2~ gas tax 1/2~ sales tax 1989 consist of the following: 110,925 9,728 2,660 123,313 7,854 11,$60 156,544 176,258 --24- NOTES TO FINANCIAL STATEMENTS--CONTINUED ~-~TY OF BOYNTON BEACH, FLORIDA tember 30, 1989 NOTE F--RESTRICTED ASSETS In connection with the ordinances governing the issuance of its revenue bonds, the City is required to invest ahd restrict certain amounts for bond requirements and renewal and replacement of the water and sewer system. The City ~s also required to Enterprise funds Water and Sewer Fund Equity in pooled cash and investments Investments Interest receivable Due from Regional ..,~ Board ooynton Beach Recrea- tional Facilities Fund Equity in pooled cash and invest- Rents Investments Bond Capital Customer Renewal and Requirements Improvements Deposits Replacement Total $3,444,166 ~716,907 $1,153,267 ~ 674,127 ~5,988,467 87,t7U' 1,859,339 1,946,509 76,821 76,821 236,551 236,551 3,444,166 804,077 1,153,267 2,846,838 8,248,348 279,428 100,000 379,428 490,951 490,951 770,379 100,000 870,379 4~ 4~ ~1.t53.Z67 ~2.946 83~ ~_~ NOTE G--INVESTMENT IN REGIONAL WASTEWATER TREATMENT PLANT In 1974, the City of Boynton Beach joined with the City of Pelray Beach to form the Board, a dependent special district. The Board, which is governed by a body composed of the commission members from each city, oversees the operation of the Regional Wastewater Treatment Plant which services both cities and surrounding areas. The interlocal agreement between the City of Boynton Beach and the City of Delray Beach specifies that the Board has the authority to accept and disburse funds, transact business and enter into contracts for budgeted items. In addition, the Board has the authoriny, subject no approval by a majority vote of each city commission before ~oming effective, no adopt an annual budget, establish fanes and charges for opera- ,ns, maintenance, expansions and construction, enner into contracts for nonbudgeted :ms and authorize the return of any surplus funds or levy additional charges for d~ficits of the Board to the respective cities. No debt has been authorized or issued by the Board. 25- NOTES TO FINANCIAL 'STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE G--INVESTMENT IN REGIONAL WASTEWATER TREATMENTPLANT--CONTINUED Ow~nership of the regional wasuewater and treatment facility is vested proportionately with the cities in accordance with the capital investments of each city, which to date are approximately 50% each. The Board charges each City for its share of the Board's operating expenses based on the percentage flow of wastewater from each city. For the year ended September 30, 1989, the City of Boynton Beach accounted for approximately 45% of the total wastewater flow treated bY the Board, and approximately 45% of the Board's operating expenses were billed to the City of Boynton Beach. Each individual city is responsible for setting the rates and collecting charges for wastewater dis- posal from customers within its jurisdiction. Financial information relating to the Beard as of September 30, 1989 is as follows: Total assets Total liabilities 5,A63,017 970,198 TOTAL EQUITY ~ 4.492.81~ Total revenue Total expenditures Other financing sources (uses) REVENUE OVER EXPENDITURES BEFORE OTHER FINANCING SOURCES (USES) REVENUE OVER EXPENDITURES 3,832,493 3,117,814 714,679 70.635 785,314 Fund balance, October 1, 1988 3,707,505 FUND BALANCE, SEPTEMBER 30, 1989 ~ 4.492~819 The changes in the City's share of the assets, liabilities and equity of the Board for the year ended September 30, 1989 are as follows: Investment at Investment at October 1, Net September 30, 1988 Additions_ 1989 Board 'Total assens $ 2,643,294 $ 88,215 i 2,731,509 Total liabilities 779,329 (294,230) 485,099 TOTAL EQUITY City Properuy, plant and equipmenn Less accumulated depreciation 1.863~ $ 382,445 13,398,579 ~ 514,124 2,456,965 523,873 Z~6,410 13,912,703 2i980,838 $ 10~94~ Sf 9,J2!~) s -26- NOTES TO FINANCIAL STATEFfENTS--CONTINUED G!~T~Y OF BOYNTON BEACH, FLORIDA £ tember 30, 1989 NOTE G--INVESTMENT LN REGIONAL WASTEWATER TREATM]~NT PLANT--CONTINU~D The City acconnts for its investment in the Board as a joint venture recorded on the ~quity method of accoualting. The Board has established a reserve for renewal and replacement of the wastewater treatment plant which is funded by the monthly operating charge to the cities. The monies collected by the BOard for renewal and replacement are returned to the cities in equal ~ to be invested for the.Board until needed. The City of Bo~rnt, t/f in these Cenewal and replacement funds as investments lrnder a reserve of retained earnings for renewal and replacement in tments held by the City for the Boar~l. At September ," the restricted assets related to these renewal and replacement fund.~ 2., 517. The Board does not record the property, plant and equipment of the wastewater and treatment facility or a~y depreciation thereon in its financial statements because the legal title to the assets is wested with the cities in accordance with their capital investments. Accordingly, the City of Boynton Beach has recorded depreciation expense of ~5213,873 for the year ended September 30, 1989 on its 50% share of the property, plant and equipment of the. Board. At September 30, 1989, the City's 50% share of the D~perty, plant and equipment of the Board totaled $13,912,703, less the accumulated d: ~eclation thereon of ~2,980~38 and has ~een included in th~ City's balance sheet a Investment in Regional Wastewater. Treatment Plant. NOTE H--PROPERTY, PLANT AND EQUIPMENT The components of property, plant and equipment at September 30, 1989 are summarized as follows: General Proprietary Funds Fixed Assets Internal Account Enterprise Service Grou~ Land $ 1,561,300 ~ $ 3,076,856 Buildings and improvements 8,254,281 4,995 12,048,806 Lines 46,333,152 Equipment 14,004,118 5,183,846 5,~16,474 Wells 2,987,891 Construction in progress 5,426,775 t0,181,051 78,567,517 5,188,841 30,723,187 Less allowances for depreciation 3,2~9,!6~ t9,522,000 ~_59~045.sjkZ Construction in progress consists [rimarily ments to the wate~ and sewer system. Total 4,638,156 20,308,082 46,333,152 24,604,438 2,987,891 15,607.826 11~,479,545 of 22~771~166 S 30~7~J~LS2 $~1)~=~9 renovations ~o City Hall ~nd improve -27 - NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACB, FLORIDA September 30, 1989 NOTE H--PROPERTY, PLANT AND EQUIPMENT--CONTINUED The changes in general fixed assets are summarized as follows: Balance, Balance, October 1, September 30, 1988 Additions Deletto_ns 1989 Land $ 997,856 $ 2,019,000 $ ~ 3,076,856 Buildings and improvements 11,586,721 462,085 12,O48,806 Equipment 4,301,312 1,219,060 103,989 5,416,474 Construction in progress 5,070,116 5.110.935 10.181.051 ~ ~ 8.871.08~ ~_103.898 ~ 30.723.187 NOTE I--INTERFUND RECEIVABLES AND PAYABLES Interfund receivable and payable balances at September 30, 1989 are s%tmmarized as fol- lows: General Fund Enterprise Fund Water and Sewer Fund Internal service fnnds Vehicle Service Fund Special ravenue funds Local Option Gas Tax Fund Community Redevelopment Fund Fiduciary funds Firemen Pension Fund Retirement Trust Fund Boynton Beach Memorial Park Fund Interfund Interfund Receivable Payable $ 408,007 ~ 303,360 303,360 2,340 250,000 158,007 408,007 50 50 2,340 50 2,390 ~,757 $ 71fl,757 -28- ~OTES TO FINANCIAL STATEMENTS--CONTINUED IT~v~=OF BOYNTON BEACH, FLORIDA eg mber 30, 1989 OTE J--DEFINED BENEFIT PENSION FUNDS ~escription of Plans: The City contributes to three Single-employer pension plans overing all full-time City employees: ten their no of Fund covers all [ time employees except :mployees become vested .th the Ci retirement age is 62 with 10 monthly annuity checks the continues until death. Annuities to which a ~heir final average such compensation pro- years of credited service at first $550 excess of ~550. The City's an afinual'basis. Police Pension Fund--This Fund covers all sworn police department employees. ~ployees are vested after 10 years of service with the City and are eligible r retirement-aft~r 20 years of service regardless of age. Monthly annuity ecks begin the month an employee retires and the amonnt of annuity to which ~.ze retired employee will be entitled will be equal to the number of years of credited service m~lttplied by 2.5~ of average final compensation. Employee contributions are 7% of annual compensation. The City's ~ontribution is deter- mined actnariatly on an annual basis and is reduced by the amount the City receives from the State of Florida. The Mtate of Florida's contributions are pursuant to Chapter 185 of the Florida Statutes which provides for a premium tax on certain casualty insurance contracts written on Boynton Beach properties. The tax is collected by the State of Florida and remitted to the City for improvements to the Police Pension Fund. Firemen Pension Fund--This Fund covers all fireftghters and fire department officers. Employees become vested after 10 years service with the City and are eligible for retirement after 20 years regardless of age. Monthly annuity checks begin the month an employee retires and the amount of the annuity to which the retired employee will be entitled will be equal to the number of years of credited service multiplied by 2.5~ of average final compensation. Employee contributions are 7~ of aralual compensation. The City's contribution is deter- mined actuarially on an annual basis and~ is reduced by the amount the City receives from the State of Florida, The Stage of Florida's contributions are pursuant to Chapter 175 of the Florida Statutes which provides for a premium tax on certain casualty insurance contracns written on Boynton Beach properties. The tax is collected by the State of Florida and remitted no the City for p vemen~s to the Firemen Pension Fund. -29- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE J--DEFIN~ED BENEFIT PENSION FUNDS---CONTINUED Information regarding currenn year covered payroll and participant data for the three pension plans is as follows: Police Firemen Retirement Pension Pension Trust Fnnd Fund Fund Covered payroll for the year ended December 31, 1988 (latest valuation) $ 11,281,582 Covered payroll as a percentage of the City's total payroll of $17,008,882 66% Participant data as of December 31, 1988 (the date of the most recent actuarial valuation) Retirees and beneficiaries receiving benefits 51 Terminated employees entitled to benefits but not yet receiving them 8 Vested current employees tll Nonvested current employees 367 4,3940160 $ 2,945,471 26% 17% 13 15 1 1 22 25 93 47 Funding Status and Progress: The "pension benefit obligation" shown below is a stan- dardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and any step-rate benefits, estimated to be pay- able in the future as a result of employee service to date. Tile measure is intended to help users assess the funding status of the pension plans on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due and make comparisons among employers, Tile measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to the sysnem~ which is the Entry Age Normal Cost Method. The City's pension plans use the Entry Age Normal Cost Method because it provides for a level percennage of payroll contributions over time and is one of the acceptable menhods for the State of Florida. The State of Florida has established guidelines for pension plan funding and requires ~submisston of actuarial reports to a state agency for their approval. The unfunded actuarial accrued liability is being amortized as a level dollar amount over a period Of 30 years. The [ension benefit obligation was computed as porn of an actuarial valuation per- formed as of December 31, 1988. Significant actuarial asslunpttons used in the valua- tion include (a) a rate of return on the investment of present and future assets, (b) projected salary increases compounded annually, attributable to inflation, (c) additional projected salary increases depending on age, attributable ~o seniority/merit and (d) no postretirement benefit increases. -30- )TES TO FINANCIAL STATEMENTS--CONTINIrED .T~.Q~F BOYNTON BEACH, FLORIDA p~ ocr 30, 1989 TE J--DEFINED BENEFIT PENSION FUNDS--CONTINUED ~e total ' unfunded pension benefit obligation applicable to City employees at ~cember 31, 1988 was as follows: Pension benefit obligation Retirees and beneficiaries currently receiving bene- fits and terminated employees not yet receiv- ing benefits Current employees Accumulated employee con- tributions, including allocated investment ==~ earnings Employer-financed vested ~mployer-ftnanced non- vested TOTAL PENSION BE1YEFIT OBLIGATION Net assets available for benefits, at cost UNFUNDED PENSION BENEFIT OBLIGATION Net assets available for benefits, at market Actuarial assumptions Rate of return on invest- Projected salary increases attributable to inflation Projected salary increases attributable to seniority/merit Police Firemen Retirement Pension Pension Trust Fund Fund Fund 2,860,507 ~ 2,062,612 ~ 1,976,922 3,048,745 1,192,972 4,493,888 2,663,947 4,937',627 1.150.039 15,340,767 7,069,570 Total 6,900,041 1,032,148 5,273,865 2,766,512 9,924,347 1.165.030 7,252,696 6,940,612 29,350,949 13 484,61~ 5,660,203 6,377,009 25,521,M28 1.856.15] ~ 1.409.367 ~ ~ 8.0% 10% 10% 6.5 10 10 6.5 8 8 e significant actuarial assumptions used uo compute the acnuariatly determined ib~.on requirement are the same as described previously. con- as those used no compune the pension benefit obli- -31- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE J--DEFINED BENEFIT PENSION FUNDS--CONTINUED The contributions to the plans for 1988 were made in accordance with actuariallTM determined requirements computed through an actuarial valuation performed as o December 31, 1988. Information concerning the 1988 pension contributions is as fol lows: Normal cost Percent of current covered payroll Amortization of ~nfunded actuarial accrued liability Percent of current covered payroll City pension contribution Percent of current covered payroll Employees' contribution Percent of current covered payroll Police Firemen Retirement Pension Pension Trust Fund Pund Fund Total ~ 1,423,089 ~ 574,167 $ 423,954 ~ 2,421,210 i2.61% 13.06% 14.39% 13.00% 256,660 $ 3,697 $ 43,037 ~ 303,394 2.27% .08% 1.46% 1.62% 871,572 ~ 531,306 ~ 488,647 ~ 1,891,525 7.72% 12.09% 16.58% 10.15% 576,010 ~ 2747625 ~ 194,628 ~ 1,045,263 5.10% 6.24% 6.60% 5.61% Trend Information: Trend information gives an indication of the progress made acc%unulating sufficient assets to pay benefits when due. Ten-year trend informatto may be found on pages 129 through 134 of the City's comprehensive annual financia report. The following table presents net assets available for benefits as a percent of th pension benefit obligation and the %mf~nded pension benefit obligation and employe contributions as a percentage of annual covered payroll: Retirement Trust Fund Net assets available for benefits Unfunded pension benefit obligation Employer contributions Police Pension Fund Net assets available for benefits Unfunded pension benefit obligation Employer contributions Firemen Pension Fund Net assets available for benefits Unfunded pension benefit obligation Employer contributions 1988 1987 1986 87.39% 98.29% % 16.42 2.40 7.72 7.49 6.75 80.06 81.58 32.07 27.90 12.09 10.60 91.87 89.30 19.13 23.36 16.58 13.65 11.02 15.80 -32- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA S tember 30, 1989 NOTE J--DEFIlVED BENEFIT PENSION FUNDS--CONTINUED Showing unfunded pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation for analysis purposes. For the three years ended 1988, 1987 and 1986, the City's contributions to the plans were all made in accordance with actuartally determined requirements. Postretirement ~eneftts: The City offers contribution of health and benefits t0 employees. · upon retirement' The fitlI cost of such benefits areltfepaidtnsuranCeby the retirees, and the City,as no liability for pos~retirement benefits. Investments: The cost and fair market value of the investments of the pension funds at September 30, 1989 are as fellows: . Retirement Trust Fnnd . Police Pension Fund Firemen Pension Fund Market Market Market _ Cost _ Value Cost Value Cost Value MutualMoney market fund fund $ 3,238,390 $ 3,238,390 $ 970,410.$ 970,410 $1,742,919 $1,742,919 U~"q· Government 100,100 100,100 ~curities 2,388,769 2,42§,143 2,684,451 2,733,268 1,590,946 1,612,142 C~.. _.orate bonds 5,244,059 §,222,658 31S,249 299,409 2,013,579 2~022,414 Common stocks 3 425 341 4 319 424 2 236 151 _3,074,24l 1,376,954 1 744,865 Cost is based on actual cost or par value plus nnamortized premium or less unaznortized discount.cant investments.Fair market value has been determined by quoted market price fcr all signifi- During the year ended September 30, 1989, the total net realized gains included in pen- sion fund investment earnings and the net appreciation (depreciation) in fair market value were as follows: Mutual fund U. S. securities _Retirement Trust Fund Police_PensionFund Firemen Pension Fund Realized Realized Realized Gain Appreciation Gain Appreciation Gain Appreciation _iLpss) _l_DepreciBtion) (Loss) ~Dpreciation) (Loss) _ (Deprecia_tion) ~(35,818) ( 9~269) 36,374 48,817 ( 6,805} 21.196 ( 11,603. (21,401) (13.840) 3,669) 8.83~ 46L~912 894083 93~229 838 O~Q~g{ 153307 ~9!! -33- NOTES TO FINANCIAL STATEFfENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE K--DEFERRED COMPENSATION PLANS The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan is available to all City employees and permits them to defer a portion of their salary until future years. The deferred com- pensation is not available to employees n~til termination, retirement, death or an unforeseeable emergency. All amonnts of compensation deferred under the plan, all property and rights pur- chased with these amounts and all income attributable to these amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of benefits under the plans), subject only to the claims of the City's general credi- tors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. tt is the City's opinion that they have no liability for losses under the plan but do have the duty Of due care that would be required of am ordinary prudent investor. The Ct~ty believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. NOTE L--GENERALLONG-TERM DEBT The general obligation bonds of the City are as follows: Recreational and Municipal Beach Facilities Bonds--The authorized issue dated February 1, 1983 was $1,750,000. Bonds are outstanding at September 30, 1989 in the amount of $1,550,000 and bear interest at rates ranging from 7.25% to 8.6% per annum. The bonds manuring August 1, 1994 and thereafter are subject to redemption prior to maturity. Series 1985--The authorized issue dated August 1, 1985 was $6,350,000. Bonds are outstanding at September 30, 1989 in the amount of $5,870,000 and bear interest ar rates ranging from 7% ro 8.6% per annum. Bonds maturing November 1, 1996 and thereafter are subject no redemption prior to maturity. Series 1988--The authorized issue dated November t, 1988 was $2,390,000. Bonds are outstanding at September 30~ 1989 in the amounn of $2,390,000 and bear inter- esr at rares ranging from 5.90% ro 7.25% per annum. Bonds manuring November 1, 1996 and thereafter are subject to redemption prior no maturity. -34- NOTES TO FINANCIAL STATEMENTS--CONTINUED CtTX OF BOYNTON BEACH, FLORIDA Se .~mber 30, 1989 NOTE L--GENERAL LONG-TERM DEBT--CONTINUED The~debt service requirements of the City's general obligation bonds are as follows: Fiscal Year Ending September 30 PrinciPal Interest Total at End of Fiscal Year 1990 ~ 230,000 ~ 761,860 $ 991,860 ~ 17,341,920 1991 305,000 743,514 1,048,514 16,293,406 1992 335,000 721,724 1,056,724 15,236,682 1993 355,000 698,029 1,053,029 14,183,653 1994 390,000 672,133 1,O62,133 13,121,520 1995 405,000 643,521 1,048,521 12,072,999 1996 440,000 612,441 1,052,441 tl,020,558 1997 475,000 577,694 1,052,694 9,967,864 1998 520,000 539,378 1,059,378 8,908,486 1999 555,000 497,383 1,052,383 7,856,103 2000 600,000 451,624 1,0511,624 6,80A,479 2001 655,000 401,431 1,056,431 5,748,048 2002 710,000 3460043 1,056,043 4,692,005 2003 765,000 285,913 1,050,913 3,641,O92 2004 830,000 220,408 1,050,408 2,590,684 2005 710,000 148,640 858..640 1,732,044 2006 770,000 87,130 857,130 874,914 2007 170,000 48,938 218,938 655,976 2008 185,000 36,069 221,069 434,907 2009 195,000 22,294 217,294 217,613 2010 210,000 7,613 217,613 8.523.780 The special revenue bonds of the City include the Public Service Tax Revenue Bonds, Series 1986. Series 1986--The authorized issue dated November 1, 1986 was $11,650,000. Bonds are outstanding at September 30, 1989 in the amount of $10,985,000 and bear inter- est at rates ranging from 5% to 7.125% per annum. Bonds maturing November 1: 1997 and thereafter are subject to redemption prior to manurity. The bonds are secured by a pledge of the public service naxes received by the City. -35- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE L--GENERAL LONG--TERM DEBT--CONTINUED The debt service requirements of the City's special revenue bonds are as follows: Fiscal Year Ending September 30 Principal Interest Total Balance at End of Fiscal Year 1990 ~ 355,000 $ 712,108 ~ 1,067,108 ~ 17,945,160 19§1 375,000 693,482 1,068,482 16,876,678 19§2 390,000 673,203 1,063~203 15,813,475 1993 415,000 651,052 1,066,052 14,747,423 1994 435,000 626,926 1,061,926 13,685,497 1995 460,00.0 600,850 1,060,850 t2,624~647 1996 490,0~0 572~335 1,062,335 11,562,312 1997 520,000 541,010 1,061,010 10,50t,302 1998 550,000 506,755 1,056,755 9,444,547 1999 585,000 46g,575 1,054,575 8,389,972 2000 625,000 429,333 1.054,333 7,335,639 2001 670~000 385,615 1,055,615 6,280~024 2002 715,000 338,168 1,053,168 5,226,856 2003 765,000 286,247 1,051,247 4,175,609 2004 815,000 229,959 1,044,959 3,130,650 2005 875,000 169,753 1,044,753 2,085,897 2006 940:,000 105,094 1,O45,094 1,040,803 2007 1,005,000 35,803 1,040,803 10.985.000 ~ 8.027.26~ ~9.012.268 The change in general long-term debt for the year ended September 30, 1989 is as fol- lows: Net Balance, Compensated Balance, 0ctober 1, Absences Debt September 30, 1988 Accrued Additions Retirements 1989 Compensated absences $ 2,393,014 General obligation bonds 7,635,000 Special revenue bonds 11.325,]00 Linigation settlement $ 157,048 $ $ ~ 2,550,062 2,390,000 2t5,000 9,810,000 340,000 t0,9~5,000 8,000,000 8,000,00C The City has no~ established a legal debt margin limit. -36- NOTES TO FINANCIAL STATEMENTS--CONTINUED Ct~ OF BOYNTON BEACH, FLORIDA ember 30, 1989 NOTE M--REI~ENUE BONDS The outstanding revenue bonds of the City at September 30, 1989 are summarized as fol- lows: Boynnon Beach Recreational Waterand Facilities Sewer Fund Fund Total Revenue bonds payable Unamortized discount Less current portion 18,152,8t4 $ 3,770,000 ~ 21,922,814 365,264 71,766 437,030 17,787,550 3,698,234 21,485,784 875,000 130,O00 1,005,000 LONG-TERM PORTION ~ 16.912.550 ~ 3.568.234 ~ 20.480.784 Water and Sewer Fund: In May 1984, the WatEr and Sewer Fnnd issued $9,635,000 of Water and Sewer Utility Revenue Bonds, Series 1984A to refUnd the then outstanding W~r and Sewer Revenue Bonds, Series 1964~ 1971, 1974, 1975A, 1975B and 1978. The p~ :eeds of the 1984 bonds were used to fund an irrevocable escrow accoant established tc pay principal and interest on the 1964 to 1978 bonds. In November 1985, the Water and Sewer Fnud issued ~20,237~814 of Water and Sewer Utility Revenue Bonds, Series 1985 to refund the then outstanding Water and Sewer Revenue Bonds, Series 1984A and to provide funds for capital improvements. Of the total progeeds of the Series 1985 bonds, $i0,438,000 was used to fund an irrevocable escrow account established to redeem and pay interest on the Series 1984A bonds totaling $9,635,000 of principal and $13,238,870 of interest at the time of refundirig. At September 30, 1989, the princi- pal and interest outstanding but considered extinguished under these refunding arrangements was not determinable. The debt service requirements of the City's Water and Sewer Revenue Bonds, Series 1985 are detailed on the next page and are funded by the excess of user charges over oper- ating expenses and investment income. The Series 1985 bonds bear interest at rates ranging from 6% to 9.5% per annum. The Water and Sewer Utility Revenue Bonds, Series 1985 consists of $18,100,000 Current Interest Serial Bonds maturing from 1986 through 1993 and $2,137,814 Capital Apprecia- tion Serial Bonds manuring from 2001 through 2005. Accretion of the discount on the Capital Appreciation Serial Bonds amounted to $261,226 for the fiscal year ended September 30, 1989~ This amount is included in the accompanying financial statements as accrued interest payable. 37- NOTES TO FINANCIAL STATEMENTS- CONTINUED CITY OF BOYNTON BEACH. FLORIDA September 30, 1989 NOTE M--REVENUE BONDS--CONTINUED Fiscal Year Balance at Ending End of September 30 Principal Interest Total Fiscal Year 1990 ~ 875,000 ~ 1,209,320 ~ 2,084,320 $ 33,394,421 1991 940,000 1,149,830 2,089,830 31,304,591 1992 1,O05.000 1,083,668 2,088,668 29.215,923 1993 1,075,000 1,010~832 2.085.832 27,130,091 1994 1,150,000 930,695 2,080.695 25,049,396 1995 1,235.000 842.408 2,077,408 22,971,988 L996 1,330,000 744~g90 2,074,890 20~897,O98 1997 1,430,000 637,200 2,067,200 18.829,898 1998 1,5451&000 5187142 2,063,142 16,766,756 1999 1.670,000 386,683 2,056,683 14,710,073 2000 1,805,O00 241,985 2,046,985 12,663,088 2001 1,955,000 83,088 2,038,088 10,625,000 2002 517,756 1,607,244 2,125~O00 8,500.000 2003 466,098 1,658,902 2,115,O00 6.375,000 2004 422,386 1,702,614 2~125,000 4~250,000 2005 382,394 1,742,606 2,tg5,000 2,125,000 2006 349,180 1.775,820 2,1~5,000 ~ 18.152.81~ ~ 17.325.92~ $ 35.478.741 Bond Resolution 85-YYY (as amended by B~nd Resolution gS-ZZZ) of the City of Bos~nton Beach requires that revenue be sufficient to provide an amount equal to 100% of oper- ating expenses of~the system, 125% of the curren= fiscal year's primeipal and interest requirements, 100% of the current fiscal year's reserve account-deposit requirements, and Renewal and Replacement Fund requirements. As shown by the following schedule, the City was in compliance with this requirement for the year ended September 30, 1989: Required Balance Operating expenses $ 6,452,993 Current principal and interest requiremen5 f 2,076,770 Current reserve accounE, and renewal and replacement reserve requiremen~ $ 120,000 TOTAL REQUIREPCENT 100% $ 6,452,993 125% 2,595,963 100% 120,000 9,168,956 14.561,196 EXCESS OVER REQUIREMENT $ 5~ NOTES TO FINANCIAL STATEF~NTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA S, ember 30, 1989 NOTE M--REVENUE BONDS--CONTINUED Boynton Beach Recreational Facilities Fund: In October 1984, the Boynton Beach Recre- ational Facilities Fund issued 54,000,000 Recreational Facilities Revenue Bonds, Series 1984 to refund the then outstanding Recreational Facilities Revenue Bonds, Series 1982. The proceeds of the Series 1984 bonds were used to fund an irrevocable es~r0w account established to redeem and pay iuterest on the Series ~982 bouds'total- lng ~4,O00,0~0 of principal and ~5,08t,668 of interest at the time of refunding. At September 30, 1989, the princiPal ~nd ~nterest outstanding but considered extinguished under this arrangementwas not determinable. The Series 1984 bonds are funded b3 and annum. The debt of user charges over operating expenses ranging from 7~75M to 10.125% per ements of the Series 1984 bonds are as follows: Fiscal Year Balance Ending at End of September 30 Principal Interest Total Fiscal Year 1990 ~ 130,000 ~ 353,589 1991 140~000 342,951 1992 150~000 331,164 1993 165,000 317,964 1994 180,000 303,076 1995 190,000 286,651 1996 210,000 268,389 1997 230~000 247,751 1998 250,000 224,764 1999 275,000 199,226 2000 305,080 170,654 2001 335,000 138,806 2002 365,000 103~806 2003 400,000 65,306 200_4 445,000 22,528 483.589 482 951 481 164 482 964 483 076 476 651 478 389 477 751 474 764 474 226 475 654 473 806 468 806 465 306 467,528 6,663,036 6,180,085 5,698,921 5,215,957 4,732,881 4,256,230 3,777,841 3,300,090 2,825,326 2,351,100 1,875,446 1,401,640 932,834 467,528 ~ _$~3.376.62~ ~ -39- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE M--REVEN-OE BONDS--CONTINUED Bond Resolution 84-TTT of the City of Boyntom Beach requires that gross revenue be sufficient to meeC 100% of the operatto~ and maintenance expenses, at l~ast 150% of the principal and,interest requirement and 100% of all other payments required by the R~solution. As shown bythe followingschedula, the City was in compliance with this requirement for the year ended September 30, 1989: Required Balance Operation and maintenance expenses Principal and interest requirement TOTAL REQUIREMENT 1,009,078 100% $ 1,009,078 483,126 150% 724,689 1,733,767 1,859,500 EXCESS OVER REQUIREMENT ~ 125.73~ NOTE N--CONTRIBU~ED CAPITAL Contributed capital of the proprietary following: Property owners and developers Grants City of Boynton Beach Palm Beach County Less depreciation on contributed capital NET CONTRIBUTED CAPITAL funds at September 30, 1989 consists of the Internal Enterprise Service Funds Funds Total 49,532,056 $ 17,242 ~ 49,549,298 11,523,946 11,523,946 276,194 1,090,156 1,366,350 126,217 126,217 61,458,413 1,107,398 62,565,811 8,011,639 970,176 8,981,815 53.44~-774 $ 137.2j~1 ~Lf~_.583.996 -40- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA S~ ember 30, 1989 NOTE N--CONTRIBUTED CAPITAL--CONTINUED The changes in contributed capital for the year ended September 30, 1989 are s~mmar- ized as follows: Enterprise funds Water and Sewer Fund Balance, October 1, 1988 Additions from: Commercial and residential development TOTAL ENTERPRISE FUNDS, SEPTEMBER 30, 1989 ternal service funds Vehicle Service FUnd Balance, October 1, 1988 Additions from: Commercial and residential developmant TOTAL INTERNAL SERVICE FUNDS, SEPTEMBER 30, 1989 TOTAL CONTRIBUTED CAPITAL, SEPTEMBER 30, 1989 Property City of Palm Owaers and Bo~nton Beach Developers Grants Beach County Total ~44,038~804 $11,523,946 ~ 276,194 ~126,217 $55,965,t61 5,493,252 5,493,252 49,532,056 11,523,946 276,194 126,217 61,458,413 1,090,156 1,090,156 17,242 17,242 17,242 1,090,15~ t,107~398 ~49.549.298 ~=~~ ~126.2~1/f~12.565.811 -41- NOTES TO FINANCIAL STATEMENTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE O--SEGMENT INFOR/SATION FOR ENTERPRISE FUNDS The City maintains three enterprise funds to provide water and sewer services operate the municipal golf course and provide ss/~itation collection and dispose. services. Segment information for the year ended September 30, 1989 is as follows: Boynron Beach Recreational Total Water and Facilities Sent ration Enterprise Sewer Fund Fund Fund Funds Operating revenue Depreciation and amortization expense Operating income (loss) Net operating transfers out Net income (loss) Current capital contributions Property, plant and equipment Additions Deletions Net working capital Total assets Bonds payable from operating revenue, less unamortized discount Total equity (deficit) 11,399,926 $1,695,191 4,658,542 ~ 17,753,659 2,546,800 226,837 32,307 2,805,944 2,400,133 459,276 ( 209,103) 2,650,306 1,233,548 28,908 715,486 1,977,942 2,820,262 234,416 ( 836,299) 2,218,379 5,494,011 5,494,011 9,844,528 205,793 29,781 10,080,102 1,556,790 11,677 1,991 1,570,458 27,108,835 324,720 79,679 27,513,234 104,130,061 3,997,400 780,087 108,907,548 17,787,550 3,698,234 21,485,784 81,470,144 67,201 ( 79,902) 81,457,443 Intersegment Sales: Sales between the City's enterprise fund segments are accounte for as quasi-external transactions in each of the individual funds. NOTE P--INTEREST COSTS The total amount of interest costs incurred during the year was $3,285,673. accordance with Financial Accounting Standards Board Statement No. 62, the City ha adopted the policy of capitalizing net interest costs on funds, borrowed sine August 31, 1982 to finance the construction of fixed assets. Interest costs c $208,000 were capitalized in the General Fixed Asset Fund as part of the cost c construction in progress. NOTE Q -RETAINED EARNINGS DEFICIT At September 30, 1989, the Building Improvemenn Fund had an accumulated deficit fund balance of $1,416,413. The deficit is expected to be funded from the investme earnings of the public service r~x monies and the half mill tax collected by the Ci for 2a~ital improvements. -42- NOTES TO FINANCIAL STATEMENTS--CONTINUED _~%TY OF BOYNTON BEACH, FLORIDA ptember 30, 1989 NOTE Q-~RETAINED EARNINGS DEFICIT--CONTINUED At September 30, 1989~ the Sanitation Fund had an accumulated deficit in retained earnings of 379,902. The deficit is expected to be eliminated by future increases in user charges. NOTE R--EXPENUITURE$ OVER APPROPRIATIONS penditures exceeded appropriations for the year ended September 30, 1989 in the fol- owing funds and departments: Expenditures Over ApDropriattons General Fund City attorney Data processing City Hall/general administration Police Community Development Grant expenditures Operating transfer to Self Insurance Fund Operating transfer to Community Redevelopment Fund 374,672 276,715 63,447 194,659 431,430 314,367 6,109 Special Tax Levy/Publicity F~nd Operating transfer out 661 NOTE S--SELF INSURANCE PROGRAM At the end of the September 30, 1988 fiscal year, the City formed a self insurance fund to account for future general liability, automotive liability and workers' com- pensati0n claims. The Self Insurance Fund ~s categorized as an internal service fund. During the year, the City charged actual general liability claims paid to the fund incurring the liability. At year end, excess funds from budget were transferred to the Self Insurance Fund. Tke budgeted amount for workers' compensation was charged in the various funds and departments and the related revenue recognized in the Self Insurance Fund. The year-end liability for claims outstanding and for incurred-but not-reported claims was accrued in the Self Insurance Fund as this w~lt be the source of payment of these claims. Insurance claim expense is recognized an the time the loss is ~curred and includes iucurred-bun-not-reported claims. -43 NOTES TO FINANCIAL STATEF~NTS--CONTINUED CITY OF BOYNTON BEACH, FLORIDA September 30, 1989 NOTE S--SELF INSURANCE PROGRAM--CONTINUED Tke City was self insured for workers' compensation for the fiscal year ended September 30, 1989 with an excess policy covering claims in excess of $100,000. The City was insured for general liability and automotive liability for this period under a policy with a $10,000 deductible ~nd a maximum loss of $500,000 per occurrence. The estimated insurance claims payable at September 30~ 1989 lLr~der these two programs, including i~curred-but-~ot-repo~ted claims, were $391,244. NOTE T--COMMITMEI~TS AND CONTINGENCIES The City has various long~term contractual obligations for construction projects on which work has not been completed. The approximate balances of the contracts and related commitments as of September 30, 1989 are as follows: General Fixed Water and Assets Sewer Fund Account Group Total Total contract amount Payments on construction contracts REMAINING CONTRACTUAL COMMITMENT, SEPTEMBER 30, 1989 6,821,503 $ 13,586:874 4.439.893 10.204.109 20,408,377 14,644,002 2.381.61 ~ 3.382.76 ~ 5.764.375 The contractual commitments of the Water and Sewer Fund will be paid from the proceeds of the Water and Sewer Utility Revenue Bonds, Series 1985. The contractual commit- ments for construction in progress in the General Fixed Assets Account Group will be paid from the half mill tax collected by the City for Capital Improvements. The City is a defendant in a cause of action brought by the contractor for the City Hall construction project. The suit is based, primarily, on a delay claim, wherein the contractor asserts that the architect and the City are responsible for inordinate delays encountered in the completion of the project. The City has counterclaimed asserting that the contractor is responsible for the delays. The ultimate outcome of this litigation carnlOt presently be determined. NOTE U--LITIGATION SETTLEMENT The City has agreed to settle a lawsuit relating to the interpretation of a settlement agreement which was entered into after the denial of a rezoning request. The settle- ment provides for the payment of the sum of $8,000,000. If certain payment ~rovisions are not met, the settlement provides for interest at the legal rate (12%) from the effective date, January 24, 1990. The City expects [o fund the settlement from the issuance of bonds or some other type of obligation no be issued during the year ending September 30, 1990.