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93-26
e RESOLUTION NO. T3 -2 G A RESOLUTION AUTHORIZING THE NEGOTIATED SALE OF $ j_3Y�; oc�v CITY OF CLEARWATER, FLORIDA, WATER AND SE IER REFUNDING REVENUE BONDS, SERIES 1993; AWARDING THE SALE THEREOF TO SMITH BARNEY, HARRIS UPHAM & CO. INCORPORATED, SUBJECT TO THE TERMS AND CONDITIONS OF A PURCHASE CONTRACT; PROVIDING FOR THE ISSUANCE OF THE SERIES 1993 BONDS IN BOOK- ENTRY --ONLY FORM AND AUTHORIZING EXECUTION OF A LETTER OF REPRESENTATION WITH THE DEPOSI- TORY TRUST COMPANY IN CONNECTION THEREWITH; AUTHORIZING THE DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND AN OFFICIAL STATEMENT IN CONNECTION WITH THE DELIVERY OF THE BONDS; APPOINTING A PAYING AGENT AND REGISTRAR; APPOINTING AN ESCROW AGENT; PROVIDING CERTAIN OTHER MATTERS IN CONNECTION WITH THE ISSUANCE AND DELIVERY OF SUCH BONDS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Clearwater, Florida (the "Issuer "), has by Ordinance No. 3674 -84 enacted by the Issuer on August 2, 1984, as amended and supplemented, and Ordinance No. 5355 -93, enacted on April 15, 1993 (collectively, the "Ordinance ") , authorized the issuance of not to exceed $57,000,000 City of Clearwater, Florida, Water and Sewer Refunding Revenue Bonds, Series 1993 (the "Series 1993 Bonds "); and WHEREAS, the proceeds of the Series 1993 Bonds are to be used to (i) provide funds necessary to refund the Issuer's outstanding Water and Sewer Revenue Bonds, Series 1988A and the Issuer's out- standing Water and Sewer Revenue Bonds, Series 1988E (collectively, the "Refunded Bonds ") and (ii) pay certain costs of issuance of the Series 1993 Bonds; and WHEREAS, the Issuer has received an offer from Smith Barney, Harris Upham & Co. Incorporated (the "Underwriter ") to purchase the Series 1993 Bonds, subject to the terms and conditions contained herein and set forth in a Purchase Contract, a copy of which is attached hereto as Exhibit "A" (the "Purchase Contract ") ; and WHEREAS, the Issuer now desires to issue its Series 1993 Bonds, to sell its Series 1993 Bonds pursuant to the Purchase Contract, to authorize the distribution of a Preliminary Official. Statement and an Official Statement in connection with the issuance of the Series 1993 Bonds and to take certain other actions in connection with the issuance and sale of the Series 1993 Bonds; and 9.4, A6 WHEREAS, the Issuer has been provided all applicable disclosure information required by Section 218.385, Florida Statutes, a copy of which is attached to the Purchase Contract; and shall constitute a supplemental WHEREAS, this resolution resolution under the herein Of alle ordinance l have the meaningsset pforth zin undefined terms u the ordinance; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF CLEARWATER, FLORIDA: L� of the Series 1993 SECTION 1. The issuances Of Pon the terms and conditions Bonds by the City is hereby pp Set forth in the Ordinance. best SECTION 2• habitants the thatrthe Series 1993 Bonds be residents and inhabitants pure book -entry system of registration. In issued utilizing the Issuer authorizes the execution Trust furtherance thereof, ositor delivery of a Letter °f theeformaattachedhheretoeas Exhibit "B1° Company in Substantially Clerk are her authorized to execute and the iYayor and the City the officers of and deliver the Letter of Representatoo�ed by such changes, insertions and omissions s sme hall be app the Issuer executing the Due to the willingness of the Underwriter to SECTION 3. re ate principal amount of the y ©oa in agg g importance of purchase $r�� ---� ---- determined Series 1993 bond at favofasuch obligatio�stitais herebyp timing in the marketing ublic and the Issuer to that it is in the best interest of the public and such sale to sell the Series 1993 Bonds at a negotiated roved. the Underwriter pursuant to the terms and acuthar Zed and appned in the Purchase Contract and herein is hereby sold to the SECTION 4. The Series 1993 Bonds are hereby Underwriter, upon the terms and conditions set and incorporated Clerk are hereby authorized Purchase Contract attached hereto as Exhibit "A the form by reference. The Mayor and the City insertions to execute such Purchase ith such additional changes, substantially attached as Exhibit "A ", and omissions there the said officers of the Issuer thereof executing may be approved by same, such execution to be conclusive evidence of such app shall be dated, shall bear SECTION 5. The Series 1993 Bonds the times, shall mature and t. shall h of a use Htthe interest payable at redemption as provided in the Purcha shalln be as provided in the Bonds proceeds fficial Statement relating3to the , Series 1993 Bonds. 2 9 _,24 , SECTION 6. The Series 1993 Bonds shall be issued under and secured by the Ordinance and shall be executed and delivered by the Mayor, the City Manager and the City Clerk in substantially the form set forth in the Ordinance, with such additional changes and insertions therein as conform to the provisions of the Purchase Contract and such execution and delivery shall be conclusive evidence of the approval thereof by such officers. SECTION 7. First Union National Bank of Florida is hereby appointed Paying Agent and Registrar for the Series 1993 Bonds. SECTION 8. First Union National Bank of Florida is hereby appointed as Escrow Agent under the Escrow Deposit Agreement. SECTION 9. On the date of issuance of the Series 1993 Bonds, the Issuer may transfer the funds on hand in the various funds and accounts established for the Refunded Bonds in such manner as may be approved by a certificate of the Finance Director executed prior to or simultaneously with the issuance of the Series 1993 Bonds. SECTION 10. The distribution by the Underwriter of the Preliminary Official Statement is hereby approved, confirmed and ratified. The distribution of a final Official Statement of the Issuer relating to the issuance of the Series 1993 Bonds is hereby approved, such final Official Statement to be in substantially the form attached hereto as Exhibit C, with such additional changes, insertions and omissions as may be made and approved by officers of the Issuer executing the same, such execution to be conclusive evidence of any such approval. The Mayor and the City Manager are hereby authorized to execute such Official Statement in substan- tially the form attached hereto as Exhibit C. The execution of such Official Statement by such officers is hereby approved with such additional changes, insertions and omissions as may be made and approved by such officers. SECTION 11. The purchase of municipal bond insurance from AMBAC Indemnity Corporation ( "AMBAC ") to irrevocably guarantee the payment of principal and interest on the Series 1993 Bonds is here- by authorized. SECTION 12. All prior resolutions of the Issuer inconsistent with the provisions of this resolution are hereby modified, supple- mented and amended to conform with the provisions herein contained and except as otherwise modified, supplemented and amended hereby shall remain in full force and effect. SECTION 13. The Mayor, the City Manager, the Finance Director, the City Attorney and the City Clerk or any other appropriate officers of the Issuer are hereby authorized and directed to execute any and all certifications or other instruments or documents required by the Resolution, the Purchase Contract, the Escrow Deposit Agreement or any other document referred to above as 73 �'u a prerequisite or precondition to the issuance of the Series 1993 Bonds and any such representation made therein shall be deemed to be made on behalf of the Issuer. All action taken to date by the officers of the Issuer in furtherance of the issuance of the Series 1993 Bonds is hereby approved, confirmed and ratified. SECTION 14. This resolution shall become effective immediately upon its adoption. Passed and adopted by the City Commission of the City of Clearwater, Florida, this 15AX, day of April, 1993. (SEAL) By: — Mayor ATTEST: 0 C1 Clerk Approved as to form and correctness: C�.ty A� .orn 4 >3 -a6 EXHIBIT A PURCHASE CONTRACT $53,445,000 CITY OF CLEARWATER, FLORIDA WATER AND SEWER REFUNDING REVENUE BONDS SERIFS 1993 PURCHASE CONTRACT Mayor and City Commission City of Clearwater P.O. Box 4748 Clearwater, Florida 34618 Dear Ladies and Gentlemen: April 15, 1993 The undersigned, Smith Barney, Harris Upham & Co., Incorporated (the "Underwriter "), offers to enter into this Purchase Contract with the City of Clearwater, Florida (the "City "), which, upon acceptance of this offer by the City, will be binding upon the City and upon the Underwriter. This offer is made subject to written acceptance hereof by the City at or before 12 :00 midnight, Eastern Time, on the date hereof and, if not so accepted, will be subject to withdrawal by the Underwriter upon notice delivered to the City at any time prior to the acceptance hereof by the City. 1. Purchase and Sale. Upon the terms and conditions and in reliance on the representations, warranties, covenants and agreements set forth herein, the Underwriter hereby agrees to purchase from the City, and the City hereby agrees to sell and deliver to the Underwriter, all (but not less than all) of the aggregate principal amount of $53,445,000 City of Clearwater, Florida, Water and Sewer Refunding Revenue Bonds, Series 1993 (the "Bonds "). The Bonds shall be dated April 15, 1993. The purchase price for the Bonds shall be $52,849,074.25 (net of original issue discount of $233,034.20 and Underwriter's discount of $362,891.55) plus accrued interest on the Bonds from their date to the date of the closing referred to in Paragraph 7 of this Purchase Contract (the "Closing "). The Bonds shall be as described in and shall be issued and secured under the provisions of Ordinance No. 3674 -84 enacted by the City on August 2, 1984, as amended and 93 - ,26 supplemented (the Original Ordinance ") and Ordinance No. 5355 -93 enacted by the City on April 15, 1993, as amended and supplemented (the "Series 1993 Ordinance "). The Bonds shall mature at the times and in the amounts and bear interest at the rates set forth in Appendix I hereto and shall be subject to redemption prior to maturity as set forth in Appendix II hereto. The information required by Section 218.385(4), Florida Statutes, to be provided to the City by the Underwriter is set forth in Appendix III hereto. 2. Delivery of Official Statement and Other Documents. (a) Prior to the date hereof, the City shall have provided to the Underwriter for their review the Preliminary Official Statement dated April 7, 1993 (the "Preliminary Official Statement ") that the City deems final as of its date, except for certain omissions in connection with the pricing of the Bonds as permitted by Rule 15c2 -12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended (the "Rule "). The Underwriter has reviewed such Preliminary Official Statement prior to the execution of this Purchase Contract. '(b) With your acceptance hereof, you will deliver, at your expense, to the Underwriter within seven (7) business days of the date hereof (or within such shorter period as may be requested by the Underwriter in order to accompany any confirmation that requests payment from any customer to comply with Rule G -32 of the Municipal Securities Rulemaking Board) a reasonable number of copies of the Final Official Statement (as shall be mutually agreed to by the Underwriter and the City), dated the date hereof, together with all supplements and amendments thereto, substantially in the form of the Preliminary Official Statement, with only such changes therein as shall have been accepted by the Underwriter, signed on behalf of the City by the Mayor and the City Manager. (c) The Underwriter shall give notice to the City on the date after which no participating underwriter, as such term is defined in the Rule, remains obligated to deliver Final Official Statements pursuant to paragraph (b)(4) of the Rule. (d) At or. prior to the Closing, the Underwriter shall file, or cause to be filed, the Final Official Statement with a nationally recognized municipal securities information repository. (e) At Closing, the City shall deliver, or cause to be delivered, to the Underwriter copies of the Ordinance, certified to by the City Clerk, all substantially in the form heretofore delivered to the Underwriter, with only such changes therein as agreed upon by the Underwriter. 3. FLypresentation of the Underwriter as to Authority. The Underwriter has been duly authorized to execute this Purchase Contract and have been duly authorized to act hereunder. 4. Public Offering. The Underwriter agrees to make an offering of all the Bonds at not in excess of the initial public offering prices or yields set forth on the front page of the Final Official Statement. The Underwriter reserves the right to make concessions to dealers and e),q p,_2L s. to change such initial public offering prices as the Underwriter reasonably deems necessary in connection with the marketing of the Bonds. The City hereby authorizes the Underwriter to use the Final Official Statement and the information contained therein in connection with the offering and sale of the Bonds and ratifies and confirms its authorization of the use by the Underwriter prior to the date hereof of the Preliminary Official Statement in connection with such offering and sale. The Preliminary Official Statement, the Final Official Statement and any amendments or supplements that may be authorized for use with respect to the Bonds are herein referred to collectively as the "Official Statement." 5. SecurityDeposit. The Underwriter has delivered to the City a check for $540,000 payable to the order of the City. In the event the City does not accept this offer, such check shall be returned immediately to the Underwriter. If the offer made hereby is accepted, the City agrees to hold the check uncashed until the Closing, as security for the performance by the Underwriter of its obligation to accept and pay for the Bonds at the Closing. In the event of the failure by the City to deliver the Bonds at the Closing, or if the City shall be unable to satisfy or cause other parties to satisfy the conditions of the obligations contained herein, or if the obligations of the Underwriter shall be tenninated for any reason penmitted by this Purchase Contract, such check shall be immediately returned to the Underwriter and the acceptance of such return shall constitute a full release and discharge of all claims by the Underwriter arising out of the transactions contemplated hereby. In the event that the Underwriter fails (other than for a reason permitted hereunder) to accept and pay for the Bonds at the Closing (as hereinafter defined), such check shall be retained by the City as and for full liquidated damages for such failure and for any defaults hereunder on the part of the Underwriter, and such retention shall constitute a full release and discharge of all claims by the City against the Underwriter arising out of the transactions contemplated hereby. In the event that the Underwriter does not fail or default under the terms of this Purchase Contract, such check shall be returned uncashed to the Underwriter at the Closing. 6. City s Retaresentations Warranties and Agreements. By its acceptance hereof, the City represents and warrants to and agrees with the Underwriter that, as of the date hereof: (a) The City is duly and validly existing as a body corporate and politic and as a municipal corporation of the State of Florida. (b) The City has full legal right, power and authority to issue and sell the Bonds as contemplated by the Ordinance, the Original. Ordinance and the Official Statement. (c) The City has full legal right, power and authority to enter into this Purchase Contract, the Escrow Deposit Agreement to be dated as of April 15, 1993 (the "Escrow "I Agreement ") between the City and First Union National Bank of Florida, Jacksonville, Florida as escrow agent (the "Escrow Agent "), and to sell and deliver the Bonds to the Underwriter as provided herein; by official action of the City taken prior to or concurrently with the acceptance 3 24 It the Ordinance has been duly enacted in accordance with the Constitution the Ordinance of the State of Florida, including the charter of the City (collectively the "Act "); Purchase force h rescinded; l and the Original Ordinance, ized d t crow Agreement when executed by e city will be dulyautoranddelivered and an will constitute the legal, valid and ement binding thereof maysbe affectied by bankruptcy, insolvency, for their terms, except as the affecting creditors' other laws or the application by a court of equitable principles generally g rights; and the City has duly authorized Ordinance, tile Original ordinance, the, official 1Stat ment and d approved the consummation by transactions contemplated by rior to the date of the this Purchase Contract to have been performed or consummated at or p Closing. (d) The execution and delivery of the Bonds, this Purchase Contract, the Escrow Agreement, and the adoption and implementation of the odes and and therein, Ordinance, not and compliance with the obligations on the City's p federal conflict with or constitute a material breach of or material default undethe Act odanyef loan or Florida constitutional provision, law, administrative regulation, judgment, agreement, indenture, bond, note, ordinance, agreement or other instrument otherwise which the City is a party or to which the City or any of its prope ie or n or compliancerest in the ,creation will any such execution, delivery, adoption, imp or imposition of any material en, charge or ther security a sets of the City under the encumbrance rms of any nature whatsoever upon any properties such provision, law, regulation, document or instrument, except as provided or permitted by the Bonds and the Ordinance and the Original Ordinance. (e) All approvals, consents and orders of any governmental authority, legislative body, board, agency or commission having jurisdiction which would constitute a condition Precedent to or the absence of which would materially adversely affect the Original Ordinan e, the City of its obligations under this Purchase Contract, at�rior to ordinance, the Closing will have been, duly the Escrow Agreement, and the Bonds have been, P does not apply to such obtained; provided, however, that this representation and warranty or securities laws of any approvals, consents and orders as may be required under the Blue Sky state in connection with the offering OrdmanceticoBemplatest� to be official aken from time to time which the Ordinance or the Ongm after the Closing. the (f) The Bonds, when issued, d sold to the Underwrit delivered p ovided herein and lin the in accordance Ordinance and the Original ordinance their Ordinance, will be valid and legally an di enforceable Orig nal Ordinance; City and tile cordinance alnod the terms and the terms of the ordinance Original Ordinance will provide, for the benefit of the of the NetnReve Revenues defined in the. a legally vali d and irrevocable first lien upon and pledge water and Sewer Revenue Bonds, Ordinance), payable on a panty with the City's Outstanding 4 X3.1-4 1. a Series 1984 (the "Series 1984 Bonds ") and Water and Sewer Revenue Bonds, Series 1988 (the "Series 1988 Bonds" and, collectively with the Series 1984 Bonds, the "Parity Bonds "). (g) The information contained in the Official Statement pertaining to the City, the Bonds, the Ordinance, the Original Ordinance and the Escrow Agreement was and is true and correct in all material respects and does not contain any untrue statement of a material fact or omit to state a material fact which is necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. (h) Except as described in the Official Statement, there is no action, suit, proceeding, inquiry or investigation, at law or in equity before or by any court, governmental agency or public board or body, pending or, to the best knowledge of the City, threatened: (1) Which may affect the existence of the City or the titles of their officers to their respective offices; (2) Which may affect or which seeks to prohibit, restrain or enjoin the sale, issuance or delivery of the Bonds, or the collection or disbursement of the Net Revenues to pay the principal of and interest on the Bonds and premiums, if any, and to make other payments under the Ordinance or the Original Ordinance; (3) Which in any way contests or affects the validity or enforceability of the Bonds, the Ordinance, the Original Ordinance, the Escrow Agreement or any of them; (4) Which would cause the interest on the Bonds to be included in the federal gross income of the holders of the Bonds; or (5) Which contests in any way the completeness or accuracy of the Official Statement or which contests the powers ;f the City or any authority or proceedings for the issuance, sale or delivery of the Bonds, or the due enactment of the Ordinance or the execution and delivery of this Purchase Contract, the Escrow Agreement or any of them; nor, to the best knowledge of the City, is there any basis therefor, wherein an unfavorable decision, ruling or finding would materially adversely affect the validity or enforceability of the Bonds, the Ordinance, the Original Ordinance, the Escrow Agreement or this Purchase Contract. (i) The City will furnish such information, execute such instruments and take such other action not inconsistent with law in cooperation with the Underwriter as the Underwriter may reasonably request in order (i) to qualify the Bonds for offer and sale under the Blue Sky ei^ or other securities laws and regulations of such states and other jurisdictions of the United States as the Underwriter may designate, and (ii) to determine the eligibility of the 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 Bonds; provided that the City shall not be obligated to qualify to do business or to take any action that S would subject it to jurisdiction or general service of process in any state or jurisdiction where it is not now so subject. (j) If between the date that the Official Statement becomes available and until the earlier of (i) 90 days from the end of the "underwriting period ", as determined in the Rule, (an event the Underwriter is required to notify the City about pursuant to Paragraph 2(c) above), or (ii) the time when the Official. Statement is available to any person from a nationally recognized municipal, securities information repository, but in no case less than 25 days following the end of the underwriting period, any event shall occur which would or might cause the information contained in the Official Statement, as then supplemented or amended, to contain any untrue statement of a material fact or to omit to state a material fact 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, the City shall notify the Underwriter thereof, and if in the reasonable opinion of the Underwriter such event requires the preparation'and publication of a supplement or amendment to the Official Statement, the City shall cooperate with the Underwriter in supplementing or amending the Official Statement, the printing of which will be at City expense, in such form and manner and at such time or times as may be reasonably called for by the Underwriter. (k) The City covenants to comply with the requirements of the Internal Revenue Code of 1986, as amended. (the "Code ") in order to maintain the exclusion of the interest on the Bonds from federal income taxation. These requirements include, but are not limited to, provisions which prescribe yield and other limits within which the proceeds of the Bonds and other amounts are to be invested and require that certain investment earnings on the foregoing must be rebated on a periodic basis to the Treasury Department of the United States. (1) Except as disclosed in the Official Statement, the City neither is nor has been in default at any time after December 31, 1975, as to principal or interest with respect to an obligation issued or guaranteed by the City. (m) The City has not been notified of any listing or proposed. listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not be relied upon. 7. The Closing. At 10:00 a.m., Eastern Daylight Savings Time, on April 29, 1993 (such date herein called the "Date of Closing "), or at such later time or on such later date as may be mutually agreed upon by the City and the Underwriter, the City shall, subject to the 1 terms and conditions hereof, deliver the Bonds, bearing proper CUSIP numbers, in the definitive form of one fully registered Bond for each stated maturity, duly executed and authenticated, to the principal office of The Depository Trust Company in New York, New York. In addition, at such time, on the Date of Closing, the City shall also deliver to the Underwriter, subject to the terms and conditions hereof, the other documents hereinafter mentioned. Subject to the terms and conditions hereof, the Underwriter shall accept delivery of the Bonds and pay tl.e purchase price of the Bonds as set forth in Paragraph 1 hereof in Federal Funds to the order of 6 the City (such delivery of ,tud pay►ncnt for the Bonds herein called the "Closing "). The check referred to in Paragraph S above shall be returned to the Underwriter at the Closing. The Closing shall occur at such place as shall have been mutually agreed upon by the City and the Underwriter, The Bonds shall be in the name in which The Depository Trust Company, or such other name or names as tine Underwriter shall request, and will be made available for inspection and checking by the Underwriter at the offices of The Depository Trust Company, New York, New York, or at such other place as shall be mutually agreed upon, during the second business day prior to the Closing, 8. Closing Conditions. The Underwriter is entering into this Purchase Contract in reliance upon the representations, warranties and agreements of the City contained herein, and in reliance upon the representations, warranties and agreements to be contained in the documents and instruments to be delivered at the Closing, and upon the performance of the covenants and agreements herein, as of the date hereof and as of the date of the Closing. Accordingly, the Underwriter's obligations under this Purchase Contract to purchase, to accept delivery of and to pay for the Bonds shall be conditioned upon the performance of the covenants and agreements to be performed hereunder and under such other documents and instruments to be delivered at or prior to the Closing, and shall also be subject to the following additional conditions: (a) The representations and warranties of the City contained herein shall be true, complete and corrPrt on the date hereof and on and as of the Date of Closing, as if made on the Date of Closing. (b) At the date of execution hereof and at the Closing, the Ordinance shall have been duly approved and enacted and the Escrow Agreement shall have been duly authorized, executed and delivered by the City, shall be in full force and effect, and shall not have been amended, modified or supplemented, except to the extent to which the Underwriter shall have given its prior written consent and there shall have been taken in connection therewith and in connection with the issuance of the Bonds all such action as, in the opinion of Bryant, Miller and Olive, P.A., Bond Counsel, and Schifino & Fleischer, P.A., Counsel for the Underwriter, shall be necessary and appropriate in connection with the transactions contemplated hereby. (c) At the Closing there will be no pending or threatened litigation or proceeding of any nature seeking to restrain or enjoin the issuance, sale or delivery of the Bonds, or the pledge, collection or application of the vet Revenues to pay the principal of and interest on the Bonds or in any way contesting or affecting the validity or enforceability of the Bonds, the Ordinance, the Original. Ordinance the Purchase Contract or the Escrow Agreement or contesting in any way the proceedings of the City taken with respect thereto, or contesting in any way the due existence or powers of the City or the title of any of the members of the City Council or officials of the City to their respective offices and the Underwriter will receive the certificate of the Mayor and City Manager of the City to the foregoing effect or an opinion of M.A. Galbraith, Esq., City Attorney, that any such litigation is without merit. 7 V5 .2 b (d) There shall have been no material adverse change in the financial condition of the City since September 30, 1992. (e) At the Closing, the Underwriter shall receive the following documents, each dated as of the Closing: (i) An opinion of Bryant, Miller and Olive, P.A., Bond Counsel, substantially in the form attached to the Official Statement as Appendix "D "; (ii) An opinion of Bond Counsel, addressed to the Underwriter, stating that the Underwriter may rely upon the opinion referred to in (i) above as though addressed to them and to the effect that the information contained in the Official Statement under the headings "Authority for Issuance ", "Purpose of the Series 1993 Bonds ", "Description of the Series 1993 Bonds ", "Security for the Series 1993 Bonds and Appendix "C" - "Summary of Certain Provisions of the Series 1993 Ordinance and the Original Ordinance" (apart from any financial and statistical data contained therein as to which no opinion : r belief needs to be expressed), insofar as such information constitutes summaries of the Ordinance, the Original Ordinance, the Escrow Agreement and the Bonds, such statements are fair and accurate summaries of the provisions purported to be summarized and the information contained in the Official Statement under the Section captioned "Tax Exemption" is correct. (iii) An opinion, dated the date of the closing and addressed to the Underwriter, of M.A. Galbraith, Esq., City Attorney, to the effect that (i) this Purchase Contract and the Escrow Agreement have been duly authorized, executed and delivered by the City and constitutes a legal, valid, and binding agreement of the City in accordance with its terms except to the extent that the enforceability of the rights and remedies set forth herein may be limited by bankruptcy, insolvency or other laws affecting creditors' rights generally; (ii) the City has authorized, executed and delivered the Official Statement; (iii) nothing has come to his attention to lead him to believe that the information in the Official Statement as to legal matters relating to the City, the Bonds, the Ordinance, the Original Ordinance and the Escrow Agreement is not correct in all material respects or omits any statement which, in his opinion, should be included or referred to therein and, in addition, such counsel shall state that, based upon his participation in the preparation of the Official. Statement as City Attorney and without having undertaken to determine independently the accuracy, completeness or fairness of the statements contained in the Official Statement (except to the extent expressly set forth in this Subparagraph (iii)), as of the date of the Closing nothing has come to his attention causing him to believe that (A) the material contained in the Official Statement as to the City 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 Official Statement as to all of which no view need be expressed), or (B) the material contained in the Official Statement as to the City (as supplemented or amended pursuant to Paragraph 0) of Section 6 hereof, if applicable) as of the date of the Closing contains any untrue statement of a material fact or omits 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 as aforesaid); (iv) to the best of his knowledge, the City is not in material breach of or material default under any applicable constitutional provision, law or administrative regulation of the State or the United States or any applicable judgment or decree or any loan agreement, indenture, bond, note, material ordinance, inwarial agreement or other material instrument to which the City is a party or to which the City or any of its property or assets is otherwise subject, and no event has occurred and is continuing that with the passage of time or the giving of notice, or both, would constitute a default or event of default under any such instrument; and the execution and delivery of the Bonds, this Purchase Contract, the Escrow Agreement and the adoption of the Ordinance and the Original Ordinance and compliance with the provisions on the City's part contained therein, will not conflict with or constitute a material breach of or default under, any constitutional provision, law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, ordinance, agreement or other instrument to which the City is a party or to which the City or any of its property or assets is otherwise subject, and any such execution, delivery, adoption or compliance will not result in the creation or imposition of any lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the property or assets of the City under the terms of any such law, regulation or instrument, except as expressly provided by the Bonds, the Ordinance, the Original Ordinance or the Escrow Agreement; (v) the City has the right and power under the Act to adopt the Ordinance and the Original Ordinance and the Ordinance and the Original Ordinance have been duly and lawfully adopted by the City, are in full force and effect and constitute the legal, valid and binding obligations of the City, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors' rights generally and subject, as to enforceability, to the exercise of judicial discretion in accordance with general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law) and to the valid exercise of the sovereign police powers of the State of Florida and of the constitutional powers of the United States of America, and no other authorization is required for the City to adopt the Ordinance and the Original Ordinance; (vi) to the best of his knowledge, there is no action, suit, proceeding, inquiry or investigation at law or in equity before or by any court, government agency, public board or body, pending or threatened against or affecting the City, nor is there any basis for any such action, suit, proceeding, inquiry or investigation, wherein an unfavorable decision, ruling or finding would have a materially adverse effect upon the transactions contemplated by the Official Statement or the validity of the Bonds, the Ordinance, the Original Ordinance, the Escrow Agreement or this Purchase Contract, except as described in the Official Statement; and (vii) all authorizations, consents, approvals and reviews of governmental bodies or regulatory authorities then required for the City's adoption, execution or performance of the Bonds, the Ordinance, the Original Ordinance, the Escrow Agreement and this Purchase �r q Contract have been obtained or effected and, to tie best of his knowledge-, he has no reason to believe that the City will be unable to obtain or effect any such additional authorization, consent, approval or review that may be required in the future for performance of any of them by the City; and, in addition, he shall give his opinion to the same effect as set forth under the caption "Litigation" in tine Official Statement. (iv) A certificate, dated the Date of Closing, signed by the Mayor, the City Manager or the Director of Finance, or other appropriate officials satisfactory to the Underwriter, to the effect that, to the best knowledge of such official: (i) the representations of the City herein are true and correct in all material respects as of the Date of Closing; (ii) tine City has performed all obligations to be performed hereunder as of the Date of Closing; (iii) except as disclosed in the Official Statement, there is no litigation of which either of them has notice, and to the best knowledge of each of them no litigation is pending or threatened (A) to restrain or enjoin the Issuance or delivery of any of the Bonds, (B) in any way contesting or affecting any authority for the issuance of the Bonds or the validity of the Bonds, the ordinance, an�tthe Original tOrdinance, he corporate Escrow Agreement or this Purchase Contract, (C) ' y Y existence or powers of the City, (D) to restrain or enjoin the collection of revenues pledged or to be pledged to pay the principal of, premium, if any, and interest on the Bonds, E) which may result in any material adverse change in the business, properties, ( asserting that the assets and the financial condition of the City taken as a whole, or (F) g Official Statement contains any untrue statement of a material fact or omits any material fact necessary to make the staterents therein, in light of the circumstances under winch they were made, not misleading; (iv) since September 30, 1992, no iaterial adverse change has occurred in the financial position or results of operations of the City except as set forth in or contemplated by the Official Statement; (v) the City has not, since September 30, 1992, incurred any material liabilities other than in the ordinary course of business or as set forth in or contemplated by the Official Statement; and (vi) the Official Statement did not as of 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 necessary in order to make the statements contained therein, in light of the circumstances in which they were made, not misleading. (v) An opinion, dated the !'ite of Closing and addressed to the Underwriter, of Schifino & Fleischer, P.A., Tampa, Florida, counsel for the Underwriter, to the effect that (i) the Bonds are not subject to the registration requirements of the Securities Act to the of 1933, as amended, and the Ordinance is exempt based upon qualification pursuant and their Trust indenture Act of 1939, as amended; and (ii) P participation review of the Official Statement as counsel for tine Underwriter and without having undertaken to determine independently the accuracy, completeness or fairness of the r statements contained in the Official Statement, as of tine Date of Closing nothing f Official come to the attention of such counsel causing then' to believe that (A) the O Statement to of its date contained enstated tl therein or necessary to make the statements state a material fact required i therein, in the light of the circumstances under which they were made, not misleading (except for the financial and statistical information contained in the Official Statement as to which no view need be expressed), or (B) the Official Statement (as supplemented or amended pursuant to Paragraph 0) of Section 6 hereof, if applicable) as of the date of the Closing contains any untrue statement of a material fact or omits 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 as aforesaid). (vi) Written verification from Ernst & Young of the accuracy of (a) the arithmetical computation of the adequacy of the maturing principal amounts and interest earnings thereon of the Escrow Securities held under the Escrow Agreement (as defined therein) to pay all principal of and interest on the City's Refunded Bonds (as defined in the Official Statement), and (b) the computations of actuarial yields supporting the conclusion that the Bonds are not "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended. (vii) A certificate of Coopers & Lybrand stating that the Net Revenues for the Fiscal Year ending September 30, 1992, or for any 12 consecutive months during the 18 months preceding the date of this Purchase Contract, are not less than 1.20% of the Maximum Bond Service Requirement on the Parity Bonds and the Bonds. (viii) a certificate of, or opinion of counsel to, AMBAC Indemnity Corporation ( "AMBAC "), dated the date of Closing, addressed to the Underwriter and the City, in form and substance satisfactory to the Underwriter, to the effect that the information relating to it appearing under the caption "Municipal Bond Insurance" and in Appendix D in the Official Statement accurately and fairly presents the information purported to be shown therein, and fairly and accurately describes AMBAC. (ix) an opinion of counsel to AMBAC, dated the Date of Closing, addressed to the Underwriter, in form and substance satisfactory to the Underwriter and the City, to the effect that: (a) AMBAC is duly organized and validly existing under the laws of its state of incorporation, and (b) the insurance policy for the Series 1993 Bonds has been duly and validly issued by AMBAC and constitutes the legal, valid and binding obligation of AMBAC enforceable in accordance with its terms except as limited by bankruptcy, insolvency, moratorium and other laws affecting creditors' rights generally and subject as to enforceability by general principles of equity. (x) Such additional legal opinions, certificates, instruments and other documents as the Underwriter may reasonably request to evidence the truth and accuracy, as of the date hereof and as of the Date of Closing, of the City's representations and warranties contained herein and of the statements and information contained in the Official Statement and the due performance or satisfaction by the City on or prior to the Date of Closing of all the agreements then to be performed and conditions then to be satisfied by it. 11 (f) Evidence that First Union National Bank of Florida, Jacksonville, Florida has been approved by the City as the Paying Agent and Bond Registrar for the Bonds. (g) AMBAC shall have issued its policy insuring the Bonds and Standard & Poor's Corporation and Moody's Investors Service, Inc. shall have assigned their municipal bond ratings of "AAA" and "Aaa ", respectively, to the Bonds and letters of confirmation of such ratings shall be made availabh, at the Closing. All of the evidence, opinions, letters, certificates, instruments and other documents, mentioned above or elsewhere in this Purchase Contract shall be, deemed to be in compliance s with the provisions hereof if, but only if, they are in form and substance satisfactory to the Underwriter and the City. If the conditions to the obligations of the Underwriter to purchase, to accept delivery of and to pay for the Bonds contained in this Purchase Contract are not satisfied, or if the obligations of the Underwriter to purchase, to accept delivery of and to pay for the Bonds shall be terminated for any reason permitted by this Purchase Contract, this Purchase Contract shall terminate and neither the Underwriter nor the City shall be under any further obligation hereunder, except that the respective obligations of the City and the Underwriter set forth in Paragraph 10 hereof shall continue in full force and effect and the deposit specified in Paragraph 5 hereof shall be returned to the Underwriter. 9. Indemnification. The Underwriter agrees to indemnify and hold harmless the City, its officers and employees against any and all losses, damages, liabilities and expenses (including reasonable costs of investigation) caused by any untrue statement of a material fact contained in the Official Statement, or in any amendment or supplement thereto, or caused by an omission to state therein a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading in any material respect, except insofar as such losses, damages, liabilities or expenses are caused by any untrue statement or omission which is based upon information that is (i) funushed in writing to the Underwriter by the City expressly for use in connection with the Official Statement, or (ii) neither ascertainable from the public records of the City nor of which the general public has common knowledge. 10. Termination. The Underwriter may terminate this Bond Purchase Contract by notice to the City in the event that between the date hereof and the Closing (a) legislation shall be enacted by the Congress of the United States or adopted by either House thereof or a decision by a court of the United States or the Tax Court of the United States 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 of revenues or other income of the general character expected to be derived under the Ordinance by the City or upon interest received on securities of the general character of the Bonds or which would have the effect of changing, directly or indirectly, the federal income tax consequences of receipt of interest on securities of the general character of the Bonds in the hands of the holders thereof, which in the reasonable opinion of the Underwriter would 1? materially adversely affect the market price of the Bonds; (b) legislation shall be enacted or any action shall be taken by the Securities and Exchange Commission which, in the opinion of Counsel for the Underwriter, has the effect of requiring the contemplated issuance or distribution of the Bonds to be registered under the Securities Act of 1933, as amended, or of requiring the Ordinance to be qualified under the Trust Indenture Act of 1939, as amended; (c) the United States shall become engaged in hostilities that have resulted in a declaration of war or a national emergency or any conflict involving the armed forces of the United States shall have occurred which materially adversely affects the market price of the Bonds; (d) there shall be in force a general suspension of trading on the New York Stock Exchange as the result of an event affecting the national economy; (e) a general banking moratorium shall have been established by federal, New York or Florida authorities; (f) an order, decree or injunction of any court of competent jurisdiction, or any other, ruling, regulation or administrative proceeding by any governmental body or board, shall have been issued or commenced, or any legislation enacted, with the purpose or effect of prohibiting the issuance, offering or sale of the Bonds as contemplated hereby or by the Official Statement or prohibiting the adoption or performance of the Ordinance; (g) the President of the United States, the office of Management and Budget, the Department of Treasury, the Internal Revenue Service or any other governmental body, department, agency or commission of the United States or the State of Florida shall take or propose to take any action or implement or propose regulations, rules or legislation which, in the reasonable judgment of the Underwriter, materially adversely affects the market price of the Bonds or causes any material information in the Official Statement, in light of the circumstances under which it appears, to be misleading in any material respect; (h) any executive order shall be announced, or any legislation, ordinance, rule or regulation shall be proposed by or introduced in, or be enacted by any governmental body, department, agency or commission of the United States or the State of Florida or the State of New York, having jurisdiction over the subject matter, or a decision by any court of competent jurisdiction within the United States or within the State of Florida or the State of New York shall be rendered which, in the reasonable judgment of the Underwriter, materially adversely affects the market price of the Bonds or causes any information in the Official Statement to be misleading in any material respect; or (i) any event shall have occurred or shall exist which, in the reasonable opinion of the Underwriter, would cause the information contained in the Official Statement, as then supplemented or amended, to contain any untrue statement of a material fact or to omit to state a material fact 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 as of such time which would materially adversely affect the marketability of the Bonds. 11. Expenses. (a) If the Bonds are sold by the City to the Underwriter (unless such sale be prevented at Closing by the Underwriter's default), the City shall be obligated to pay the ` following expenses: (i) the cost of preparing and printing the Preliminary Official Statement and the final Official Statement; (ii) the fees and expenses incurred by Bryant, Miller and Olive, P.A. incurred in its capacity as Bond Counsel; (iii) the fees and disbursements of Coopers & Lybrand, the City's certified public accountants; (iv) the fees and disbursements of Ernst & 13 Young for its written verification report; (v) the fees and disbursements of Raymond James & Associates, Inc., the City's Financial Advisor, (vi) the fees and disbursements of Schifmo & Fleischer, P.A., as disclosure counsel, and (vii) the fees and disbursements of any other experts, accountants, consultants or advisors retained by the City. (b) 'Whether or not the Bonds are sold by the City to the Underwriter (unless such sale be prevented at Closing by the City's default), the Underwriter shall be obligated to pay the following expenses and shall be permitted to pay such expenses from its discount: (i) all advertising expenses in connection with the public offering of the Bonds and the cost of preparing and printing the BIue Sky and Legal Investment Surveys and this Purchase Contract; and (ii) all other expenses incurred by it in connection with the public offering of the Bonds. 12. Notices. Any notice or other communication to be given to the City under this Purchase Contract may be given by delivering the same in writing to the address set forth above and any notice or other communications to be given to the Underwriter under this Purchase Contract may be given by delivering the same in writing to Smith Barney, Barris Upham & Co. Incorporated, Public Finance Department, 100 North Tampa Street, Suite 3000, Tampa, Florida 33602. 13. Parties in Interest. (a) This Purchase Contract is made solely for the benefit of the City and the Underwriter (including the successors or assigns of the Underwriter) and no other person shall acquire or have any right hereunder or by virtue hereof. All of the representations, warranties and agreements of the City contained in this Purchase Contract shall remain operative and in full force and effect, regardless of: (i) any investigations made by or on behalf of the Underwriter; (ii) delivery of and payment for the Bonds pursuant to this Purchase Contract; or (iii) any termination of this Purchase Contract, but only to the extent provided by the last paragraph of Section 8 hereof. (b) No covenant, stipulation, obligation or agreement contained in this Purchase Contract shall be deemed to be a covenant, stipulation, obligation or agreement of any member, agent or employee of the City Council in his individual capacity and neither the members of the City Council nor any official executing this Purchase Contract shall be liable personally under this Purchase Contract or be subject to any personal liability or accountability by reason of the execution hereof. 14. No Liability. Neither the Mayor nor the City Commission nor any of the members thereof, nor any officer, agent or employee of the City, shall be charged personally by the Underwriter with any liability, or held liable to the Underwriter under any tern or provision of this Purchase Contract because of its execution or attempted execution, or because of any breach or attempted or alleged breach thereof. 14 15. Effectiveness. This Purchase Contract shall. become effective upon the execution of the acceptance hereof on behalf of the City by the Mayor and attestation by the City Manager, all in accordance with the requirements set forth in the City Charter, and shall be valid and enforceable at the time of such acceptance. 16. Counterparts. This Purchase Contract may be executed in several counterparts, which together shall constitute one and the same instrument. 17. Florida Law Governs. The validity, interpretation and performance of this Purchase Contract shall be governed by the laws of the State of Florida. 18. Entire Agreement. This Purchase Contract when accepted by the City in writing as heretofore specified shall constitute the entire agreement between us. 19. Headines. The headings of the Sections of this Purchase Contract are inserted for convenience only and shall not be deemed to be part hereof. Very truly yours, SMITH BARNEY, HARRIS UPHAM & CO. INCORPORATED B: Y Kevin M. Schuyl , Vice President Accepted as of the date hereof: ,. I ' CITY OF CLEARWATER, FLORIDA By: Pita Garvey, Mayor ATTEST: By: Cyndie Goudeau, City Clerk Approved as to form and legality: By: M.A. Galbraith, Jr., City Attorney 15 $53,445,000 CITY OF CLEARWATER, FLORIDA WATER AND SEWER REFUNDING REVENUE BONDS SERIES 1993 MATURITY SCHEDULE $50,525,000. Serial Bonds Maturity Interest Price Maturity (December 1) Amount Interest Rate Price ,(.December 1) Amount Rate 1993 $790,000 2.600% 100.000% 1999 $4,705,000 4.500% 99.433% 1994 1,495,000 3.000 100.000 2000 4,920,000 . 4.750 99.680 1995 3,990,000 3.500 99.875 2001 5,165,000 4.800 99.301. 1996 4,140,000 3.750 99.665 2002 5,430,000 5.000 100.000 99.184 1997 4,305,000 4.250 100.000 2003 5,715,000 5,370,000 5.000 5.100 99.132 1998 4,500,000 4.300 99.505 2004 $1,160,000 5.500% Term Bonds due December 1, 2011- Price 99.190 %a (Approximate Yield 5.570 %) $1,760,000 5.625% Term Bonds due December 1, 2018 - Price 99.390% (Approximate Yield 5.670 %) (Accrued interest to be added) 1 -1 Optional Redemption 0 Appendix II The Series 1993 Bonds maturing December 1, 1993 to December 1, 2002 are not callable prior to their maturity dates. The Series 1993 Bonds mattering after December 1, 2002 are subject to optional redemption by the City, on and after December 1, 2002 as a whole at any time, or in part on any Interest Payment Date thereafter, from the maturities selected by the City, and by lot within a maturity if less than an entire maturity is redeemed, a the redemption prices (expressed as percentages of principal amount) set forth below, together with accrued interest to the date of redemption: Redemption Period Price December 1 102 , 2002 through November 30, 2003 101 December 1, 2003 through November 30, 2004 100 December 1, 2004 and thereafter Mandatory Redemption The 1993 Bonds maturing on December 1, 2011 will be subject to mandatory redemption prior to maturity, by lot, in such manner as the Registrar may deem appropriate, at a redemption price equal to par plus interest accrued to the redemption date, on December 1, 2005, and on each December 1 thereafter, in the following principal amounts in the years specified: *Final maturity The 1993 Bonds maturing on December 1, 2018 will be subject to at adatory redemption price equal to maturity, by lot, in such manner as the Registrar may deem appropriate, par plus interest accrued to the redemption date, on December 1, 2012, and on each December i thereafter, in the following principal amounts in the years specified: Amortization Amortization Year Installment Year Installment 2005 $140,000 2009 $175,000 190,000 2006 145,000 2010 2011* 195,000 2007 155,000 2017. 2018 295,000 2008 160,000 *Final maturity The 1993 Bonds maturing on December 1, 2018 will be subject to at adatory redemption price equal to maturity, by lot, in such manner as the Registrar may deem appropriate, par plus interest accrued to the redemption date, on December 1, 2012, and on each December i thereafter, in the following principal amounts in the years specified: '"Final maturity II -1 Amortization Amortization Year Installment Year Installment 2012 $210,000 2016 $265,000 280,000 2013 225,000 2017. 2018 295,000 2014 235,000 2015 250,000 '"Final maturity II -1 Appendix III DISCLOSURE STATEMENT The undersigned, as Representative for the Underwriter, proposes to negotiate with the City of Clearwater, Florida, for the sale of $53,445,000 principal amount of its Water and Sewer Refunding Revenue Bonds, Series 1993 (the "Bonds "), to be completed on this date. The Underwriter is acting as investment banker to the City for the public offering of the Bonds. The total fee to be paid to the Underwriter pursuant to the Purchase Contract is equal to $362,891.55. Prior to the award of the Bonds, the following information is hereby furnished to the City: 1: Set forth is an itemized list of the nature and estimated amounts of expenses to be incurred by the Underwriter in connection with the issuance of the Bonds: (Per $1,000) Underwriter's Counsel $34,739.25 .65 Clearance 10,689.00 .20 Closing 1,603.35 .03 Communication 1,603.35 .03 Advertising 5,344.50 .10 Federal Funds 4,810.05 .09 Day Loan 1,603.35 .03 Dalcomp /Dalnet 3,206.70 .06 MSRB/PSA 3,206.70 .06 CUSIP 534.45 .01 TOTAL $67,340.70 $1.26 2. (a) No other fee, bonus or other compensation is estimated to be paid by the Underwriter in connection with the issuance of the Bonds to any person not regularly employed or retained by the Underwriter (including any "finder" as defined in Section 218.386(1)(a), Florida Statues), except as specifically enumerated as expenses to be incurred by the Underwriter, as set forth in paragraph (1) above. (b) No person has entered into an understanding with the Underwriter, or to the knowledge of the Underwriter, with the City, for any paid or promised compensation or valuable consideration, directly or indirectly, expressly or implied, to act solely as an intermediary between the City and the Underwriter or to exercise or attempt to exercise any influence to effect any transaction in the purchase of the Bonds. 3. The amount of the underwriting spread (the difference between the price at which the Bonds will be initially offered to the public by the Underwriter and the price to be paid to the City for the Bonds, exclusive of accrued interest) expected to be realized by the Underwriter is $362,891.55, which includes the following: (Per $1,000) Underwriter's Expenses $67,34030 $1.26 Management Fee 40,083.75 .75 Average Take -Down 255,467.10 4.78 l` Risk -0- '0` TOTAL $362,891.55 $6.79 III-1 4. The Management Pee to be charged by the Underwriter is $40,083.75 ($.75 per $1,000). 5. Truth-in- Bonding Statement. The City is proposing to issue the Bonds for the purpose of advance refunding the City's Water and ,Sewer Revenue Bonds, Series 1988A and the Water and Sewer Revenue Bonds, Series 1988B and to pay costs of issuance of the 1993 Bonds. The Bonds are expected to be repaid over a period of 23 years. At a true interest cost of 5.03774% (all costs included), total interest paid over the life of the Bonds will be $20,386,518.07 (net of accrued interest). The Bonds will be repaid from the City's Net Revenues (as defined in the Ordinance). Authorizing this debt or obligation will not result in a decrease in Net Revenues of the City available to finance the other setvices of the City each year during the life of the Bonds. 6. The name and address of the Underwriter connected with the Bond is as follows: Smith Barney, Harris Upham &. Co. Incorporated 100 North Tampa Street Suite 3000 Tampa, Florida 33602 IN WITNESS WHEREOF, the undersigned has executed this Disclosure Statement on behalf of the Underwriter this 15th day of April, 1993. SMITH BARNEY, HARRIS UPHAM & CO. INCORPORATED B Y: ,I Kevin M. Schuy r Vice President 111.2 EXHIBIT B LETTER OF REPRESENTATION Letter of Representations ;Name of Muer, Name of Atent; Attention: General Counsel's Office The Depository Trust Company 55 Water Street: 49th Floor Nexv fork, NY 10041 -0099 Date 1 Re: 4ssue 4Je+c•dptunt Ladies and Gentlemen: This letter sets forth our understanding with respect to certain matters relating to the above- referenced issue (the "Bonds "). Agent tiiill act �u tnestee, pining agent, lisetil agent, or other agent of Issuer with respect to the Bonds. The Bonds «ill be issued pursuant to a trust indenture. bond resolution, or other such document authorizing the issuance of the Bonds dated 199_ the "Document"% 'Cnden +rater' is distributing the Bonds through The Depositon Trust C:ompan} t "DTC C"). To induce DTC to accept the Bands as eligible for deposit at DTC, and to act in accordance with its Rules with respect to the Bonds, Issuer and Agent. if' any, snake the following s representations to DTC: i 1. Prier to closing on the Bonds on . 189,. there shall be deposited with DTC: one Bond certificate retristered in the name of DTC's nominee. Cede & Co.. for each stated matuih of the Bonds in the face ,unounts set firrth on Schedule A hereto, the total of which reprew its 100cle of the principal amount of such Bonds, If, however, the aggregate principal anxnmt of any matitrith exc•eeels 8150 million, one certificate %ill be issued with respect to each .5,150 million of principal amount and an additional certificate gill be issued with respect to am' remaining principal aniount. Each 8150 million Bond certificate shall bear the following legend: 'Unless this certificate is presented by an authorized representative of The Depository Trust Company, at Nea• York corporation t "DTC'), to Issuer or its agent for registration of transfer, exchange. or payinent. and any certificate issued is registered in die name of Cede & Co. or in such other name to is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entit -,• as is requested by an authorized representative of DTC'. ANY TRANSFER. PLEDGE. OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof. Cede & Co.. has an interest herein. 2. In the event of anv solicitation of consents from or voting by holders of the Bonds, Issuer or Agent shall establish a record date for such purposes faith no provision for revocation of consents or rotes by subsequent holders, and shall. to die extent possible. send notice of such record date to DTC not less than 15 calendar days in advance of such record date. 3. In the event of a full or pandad redemption or an advance refunding of part of the outstanding Bonds. Issuer or Agent shall send a notice to DTC speciRing: (a) the amount of the redemption or refunding: (b) in the case of a rehindin_g, die maturity date(s) established under the refunding; and c, the (late such notice is to be mailed to beneficial owners or published (the "Publication Date" I. Such notice shall be sent to DTC by a secure means (e.g.. legible telecoph; registered or certified mail, overnight deliver-,-) in a timely manner designed to assure that such notice is in DTC's possession no litter than the close of business on the business clay before the Publication Date. Issuer or .went shall forward such notice either in a separate secure transmission for each CUSIP number or in a secure transmission for multiple CUSIP numbers (if'applicable) which includes a manifest or list of each CUSIP submitted in that transmission. (The patty sending such notice shall have it method to yerih• subsequently the use of such means and die timeliness of such notice, I The Publication Date shall be not less than 30 days nor more than 60 days prior to die redemption date or in die rue of an advance refunding, the date that the proceeds are deposited in escrow. 4. In die event of an imitation to tender the Bonds, notice by Issuer or Agent to Bondholders speciRing die terns of the tender and the Publication Date of such notice shall be sent to DTC by a secure means in the manner set forth in the preceding Paragraph. 3. A11 notices and payment adhices sent to DTC shall contain the CUSIP number of the Bonds. 6. Notices to DTC pursuant to Paragraph 2 by telecopy shall be sent to DTC's Reorganization Department at (212) 709 -6596 or X212) 709 -6597, and receipt of such notices shall be confirmed by telephoning (212) ,09 -6870, Notices to DTC pursuant to Paragraph 2 bn mail or by any other means shall be sent to: Supervisor. Pro.NN Reorganization Department The Depositor• Tntst C;ompans Ilanm er Squaw: 23rd Floor New lurk. NY 10004-2693 7. Notices to DTC pursuant to Paragraph 3 b} telecop% shall be sent to DTC's Call Notification Department at 016 227 -4164 or 616 227- -1190, 1f the part sentling the notice does not receive a telecop% receipt from DTC confirming that the notice has been received. such party shall telephone 016 2274070. Notices to DTC pursuant to Paragraph :3 b, maul or by any other means shall he Sent to: Call Notification Department The Depository Trust Company 711 Stewart Avenue Garden Ciht NY 11030 -4719 5. Notices to DTC pursuant to Paragraph 4 and notices of other actions (including mandator tenders, exchanges. and capital changes( by telecopy shall be sent to DTC's Reorganization Department at (212) 709 -1093 or (212, 709 1094, and receipt of such notices shall be confirmed by telephoning (212) 709 - 65$4. Notices to DTC pursuant to die above by mail or by any other means shrill be sent to: Manager: Reorganization Department Reorganization Window The Depository Trust Compam 7 Hanover Square: 23rd Floor New York, NY 10004 -2695 9. Transactions in the Bonds shall be eligible for next -day funds settlement in DTC's Next -Day Funds Settlement ( "NDFS•') system. A. Interest payments shall be received by Cede & Co,. as nominee of DTC, or its registered . assigns in next -day funds on each payment date (or the equivalent in accordance Mth existing arrangements bebveen Issuer or Agent and DTC). Such payments shall be made payable to the order of Cede & Co. Absent any other existing arrangements such pa mients shall be addressed as follows: Manager; Cash Receipts Dividend Department The Depository Trust Company 7 Hanover Square: 24th Floor New York, NY 10004 -2695 B. Principal payments shall be received by Cede & Co.. -as nominee of DTC, or its registered assigns in next -day funds on each payment date (or the equivalent in accordance ..ith existing arrange rents between Issuer or Agent and DTC). Such payments shall be made payable to the order of Cede & Co., and shall be addressed as follows: NDFS Redemption Department The Depository, Trust Compam 00 Water Street: 50th Floor New York, NY 1(X)41 -(X)99 ry 10. DTC may direct Issuer or Agent to use arc other telephone number or address as the number or address to which notices or pavnietnts of interest or principal mac be sent. 11, in the vv ent of a redemption, acceleration. or any other sintila r transaction ,go.. tender made ;end accepted in response to Issuer's or Agents invitation' rtecessitatin <� at rc duction in the a�V;regatc principal amount of Bonds outstanding or an advance refin dini; of part of the Bonds outstanding. DTC. in its discretion: a mac request Issuer or Agent to issue and authenticate a new Bond c(-rttticate. or h may make an appropriate notation on tit(- Bond certificate indicating the date ,uuf unouut of such reduction in pnnctpal evicept nn tile rase, of final maturity, in «hick e•.tse the• (e- tttficatr %VIII be presented to issuer or 1t;vnt prior to p,,%Int- nt of recln(red. h' DTC of die a %adlabilit� of Bond certificate ari punts. 12. In the event that Issuer Bete mines trtt beneficial o��tterti of Bonds Shall he abe to obtain certificated Bonds. Issuer or Arent shall na . event. Issuer or Agent shall issue, transfer, and exchange Bcntd certificates in appropriate ect to the as required by DTC and others. 13. DTC may discontinue providing ,le notice o services [ssuer or ent Satph ch htn�tDTC ender confirm h Bonds at am' time by m�ing reasonable ��ith Issuer or sent the aggregate principal aunount of Bonds outs a se arate certificates evidencing Bonds to and' ct tlj Issuer o. at DTC's request Issuer and lkgeent shall cooperate full,,- ��ith DTC i�r taking appropriate action to make available one or DTC Participant haying Bonds credited to its DTC accounts. 1€, articipa herein shall be deemed to require Agent to advance funds on behalf of Issuer. \'ern' truly Fours, \ otes: A. If there is an Agent s defined s uertn this seen this Representatiottsj. A ent as Ixtter Issuer Letter, If diem is no Agent. in siWline dmis all o£ the ohliGauotu set forth Issuer' itself undertakes to perform herein. the \1111116 securities ti s B. tinder Rules of B,,,rd relating to "good en • a u P'ililsecu detern rre the elate that of notice dealer trust be able to an issue is trti tl call or of an establishment of p dntengThe -Publication date is ,addressed in Paragrrph 3 0£ the j cli a publit:ad Letter. that DTC belies'e- C. Schedule B cont.uns statements accanxtehy describe DTC. die method of kkgh i'r book - thrvtit }r D CC, and entr transfers of securities d'utributecl certain related matters. Received and Accepted: THE DEPOSITORY TRUST CO.[PA\Y B%7 kutlionzed Office" cc: t'nderwiter llldenrnter's Counsel p� : ature t Audtonzed Officer's Sign Agent � Bs' �uthonzed OYTicer:s Signatures (Describe Issue) SCHEDULE A CUSIP Principal Amount Maturity Date Interest Rate SCHEDULE B SAMPLE OFFICIAL STATEMENT LANGUAGE DESCRIBING BOOK-ENTRY-ONLY ISSUANCE (Prepared by DTC -- bracketed material may be applicable only to certain issues) i The Depositor, `r;,st Company , "DTC" I, New York, NY, will act as securities depository for the securities (the -Securities".. Tine Securit es will be ssued as fully - registered securities registered in the name of Cede & Co. (DTC's partnership nemineei. One fully - registered Security certificate will be issued for [each issue of] the Securities, [each] in the aggregate principal amount of such issue, and will be deposited with DTC. [If, however, the aggregate principal amount of [anyj issue exceeds S150 million, one certificate will be issued with respect to each $150 million o! principal amount and an additional certificate will be issued with respect to any remaining principal amount of such issue.j 2. DTC is a limited- purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds securities that its participants ("Participants") deposit with DTC. DTC also facilitates the settlement among Participants of securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book -entry changes in Participants' accounts, thereby eliminating the need for physical movement of securities certificates. Direct Participants include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the American Stock Exchange, Inc.. and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as securities brokers and dealers, banks, and trust companies that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ( "Indirect Participants"), The Rules acpl cable to DTC and its Participants are on file with the Secunties and Exchange Commission. 3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC's records. The ownership interest of each actual purchaser of each Security "Beneficial Owner" is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or indirect Particcpant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests n, the Securities are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book -entry system for the Securities is discontinued. 4 c facilitate subsequent transfers, all Securities deposited by Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co. The deposit of Securities with DTC and their registration in the name of Cede & Co. effect no change In beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securties: I-TC's records reflect only the identity of the Direct Participants to whose accounts such Securities are srecded, t,r. ch may or may not be the Beneficial Owners, The Participants will remain responsible for keepirg acc,.irt ;f •rev rcld ngs or behalf of their customers. ^otces and other communications by DTC to Direct Participants, by Direct Partiapants tc r;ircr t Pa ^. c ' ^d b; D rest Participants and ' ndirect Participants to Beneficial Owners ry it Ice governed b. err ��r•e +; , - hFm c�b,w , tr;;ry statutory or regulatory reguiremerts as may be n effect from -,me to t r"e o , F K,•1F G• r r,_• -H9 `a; :r :r t •`. :".• f less !har all �.,f the SeCUrit+eS Aithtr an ssue are beirg ry .tt the amrurlt ;f the rrterest of ea.h Direct °aMCCar`t r $LCh �SSt .�; Hr �� �fC �i7 f...� t N �".. Y • ": •� "t'' `~:TTribt.. � x i5 �nS 5 ... _ � i;5•C. L.. s •�.;, r i r a ; •;; Frd� . re G, �. .: � %,. oarC Cal a °.. .._ est ca.—e—_ �,r ."e Sec-,! es .. ce ^'are c ::rC DTC's practice s tc credit i.!reCt .3!1 c'cart5 data _._..rdar;e .. `.h *`'&r'esoe_ ,e a'rgs shown or TC's records mess -as Was: t e'e - -a, ' .:I! ^C' rec&,.e - a,—er! :r' ca.acle "we 'ayrrents by °articipants tc Senefical ^e'- .. _ .er+'ed C, ;:ard! ^_ ^Stn ., _ _ ::rd _,.stcr, ar, rac7ces as s the case ::ith securities held for the . _ ...._ .` c ^ens .r bearer " r ^r 'eg ctered n •strPet ^acre and till be the resporsibnity of such Participar.t and ^ -�t �` �T . the Aoert. ;r t ^evss er suclect to any stan.tory or regulator: requirements as may ben effect from —a ° . ^t W cr rc,cal and rerest to C-C s the respcns bllity of the Issuer or the Agent. disbursement of suc, ca.merts u °ar;:carts srall ce the resocns.bl4y of DTC. and disbursement of such payments to the Eenerc at C::^.ers sra l ce :re resccrs body cf Direct and indirect Participants. ;a 11 Eerefic,al C.vrer shall give notice to elect to have its Securities purchased or tendered, through its ar:c -cant. to the (rerder Remarketing] Agent. and shall effect delivery of such Securities by causing the Direct °ar,,cipant to transfer the Participant's interest in the Securities, on DTC's records, to the [fender, Remarketing] Agent. The requirement 'or physical delivery of Securities n connection with a demand for purchase or a mandatory curchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC's records.] 10. DTC may discontinue providing its services as securities depository with respect to the Securities at any time by giving reasonable notice to the Issuer or the Agent. Under such circumstances, in the event that a successor securities depository is not obtained, Security certificates are required to be printed and delivered. 11. The Issuer may decide to discontinue use of the system of book -entry transfers through DTC (or a successor securities depository). In that event. Security certificates will be printed and delivered. 12. The information in this section concerning DTC and DTC's book -entry system has been obtained from sources that the Issuer believes to be reliable, but the Issuer takes no responsibility for the accuracy thereof. .t 9 w EXHIBIT C PRELIMINARY OFFICIAL STATEMENT Aft PRELIMINARY OFFICIAL STATEMENT DATED APRIL 9, 10% c NEW ISSUE - FULL BOOK -ENTRY L 19 q," a $53,255,000' CITY OF CLEARWATER, FLORIDA Water and Sewer Refunding Revenue Bonds i; o Series 1993 Dated: May 1, 1993 Due: December 1, as shown below $ c The Water and Sewer Refunding Revenue Bonds, Series 1993 (the "Series 1993 Bonds ") of the City of Clearwater, Florida (the "City ") are being issued in Z; w w fully registered form and, when initially issued, will be registered to Cede& Co., as nominee of The Depository Trust Company, New York, New York. Ir o `o � First Union National Bank of Florida, Jacksonville, Florida, is acting as the Paying Agent and Bond Registrar for the Series 1993 Bonds. The Series cw o w 1993 Bonds will be purchased in book -entry form only, in the denominationof $5,000 or any integral multiple thereof. There will be no physical 9 + delivery of bond certificates to individual Bondholders. Interest on the Series 1993 Bonds will be payable semi - annually beginning on December 1, 1993 and on each June I and December I thereafter. Principal of and premium, if any, on the Series 1993 Bonds $ H will be payable at maturity or upon redemption prior to maturity. C H TJ .0 t $ THE SERIES 1993 BONDS ARE SUBJECT TO REDEMPTION PRIOR TO MATURITY AS DESCRIBED HEREIN. m =n H The Series 1993 Bonds are being issued for the purpose of (i) making funds available with which to advance refund the Series 1988A and the Series _ ° oe 198813 Bonds heretofore issued by the City (as further described herein) and (ii) paying certain costs of issuance of the Series 1993 Bonds, including the t3 municipal bond insurance premium. I N ° ,t The payment of the principal of and interest on the Series 1993 Bonds when due will be guaranteed by a municipal bond insurancepolicy to be issued m 'D o- by AMBAC Indemnity Corporation simultaneously with the delivery of the Series 1993 Bonds. rn c o a :r .cam V The Series 1993 Bonds and the interest thereon are payable solely from the Net Revenues derived from the operation of the City 's water and sewer } ,E a system, as further described herein. The lien of the Series 1993 Bonds on the Net Revenues is on a parity with the holders of the City's Outstanding Water E io o and Sewer Revenue Bonds, Series 1984 and the Water and Sewer Revenue Bonds, Series 1988, as further described herein. a Neither the Series 1993 Bonds nor the interest thereon constitute a general obligation or indebtedness of the City within the meaning of any 5 constitutional, statutory or charter provision or limitation. No owner or owners of any Series 1993 Bonds shall ever have the right to compel the �E exercise of the ad valorem taxing power of the City, or any other taxing power in any form on any real or personal property of the City, to pay the a Z = Series 1993 Bonds or the interest thereon. The City shall not be obligated to pay the Series 1993 Bonds or any interest thereon except from the Net w c s Revenues, in the manner provided in the Series 1993 Ordinance referred to herein. i o a, v In the opinion of Bond Counsel, assuming continuing compliance by the City tvidr various covenants in the Series 1993 Ordinance, under existing statures, 1 M 3 regulations and judicial decisions, the intereston the Series 1993 Bonds will be excluded from gross income forfederal income tax purposesto the owners thereof. The Series 1993Bordsare, tinder existing lows and regulations, also exemptfrom intangible taxes imposedpursuantroChapter199 ,Florida ° Statures. See 'Tax Exemption herein or a description o alternative ndnimum tax treatment and certain other tax consequences to owners o mp � .r P � .% 9 .f r;, ? 2 the Series 1993 Bonds. fti H A MATURITY SCHEDULE* r c 19 ,. m u $50,290,000 Serial Bonds a 1=a Interest Price Interest Price ICU a' Maturity Amount Rate or Yield MaturitV Amount Rate or Yield m cc, `o o -c. 1993 $875,000 % % 1999 $4,670,000 % % 0 .0 9 1994 1,460,000 2000 4,895,000 X. 1995 3,950,000 2001 5,140,000 1996 4,100,000 2002 5,410,000 0 1997 4,270,000 2003 5,700,000 c c 1998 4,460,000 2004 5,360,000 r 8 $1,170,000 % Term Bonds due December 1, 2011 - Price _ _% $1,795,000 _% Term Bonds due Dmember 1, 2018 - Price % (Accrued interest to be added) y c The Series 1993 Bonds are offered for delivery when, as and if issued by the City and received by the Underwriter, subject to the approval y ,75 ` y of legality by Bryant, Miller and Olive, P.A., Tallahassee, Florida, Bond Counsel. Certain legal matters are being passed rq)onflor the '� o Underwriter by its Counsel, Schyino & Fleischer, P.A., Tampa, Florida. Certain other legal matters will be passed upon fur the m City by M.A. Galbraith, Jr., Esq., City Attorney. It is expected that the Series 1993 Bonds in book - entry -oniv form will be rn available for delivery in New York, New York on or about May 1993. in U o Smith Barney, Harris Upham & Co. aIncorporated N n uJ G This Olrrdnl Statement is dated April 1993. *Preliminary, subject to charge. c % 'j CITY OF CLEARWATER, FLORIDA ELECTED OFFICIALS MAYOR - COMMISSIONER Rita Garvey COMMIISSIONERS Richard A. Fitzgerald Sue Berfield Arthur X. Deegan Fred Thomas APPOINTED OFFICIALS Michael Wright, City Manager M.A. Galbraith, Jr., Esq., City Attorney Daniel J. Deignan I CPA, Finance Director William C. Baker, Director of Public Works Cyndie Goudeau, City Clerk BOND COUNSEL Bryant, Miller and Olive, P.A. Tallahassee, Florida FINANCIAL ADVISOR Raymond James & Associates, Inc. St. Petersburg, Florida VERIFICATION AGENT Ernst & Young 0 No dealer, broker, salesman or other person has been authorized to give any information or to make any representations, other than those contained in this Preliminary Official Statement, in connection with the offering of the Series 1993 Bonds described herein, and if given or made, such information or representations must not be relied upon as having been authorized by the City or the Underwriter. This Preliminary Official Statement does not constitute an offer to sell the Series 1993 Bonds or a solicitation of an offer to buy nor shall there be any sale of the Series 1993 Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information set forth herein has been furnished by the City and by other sources which are believed to be reliable, but it is not guaranteed as to accuracy or completeness, and is not to be construed as a representation or contract, by the Underwriter. The information and expressions of opinion herein are subject to change without notice and neither the delivery of the Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof. IN CONNECTION WITH THE OFFERING, THE UNDERWRITER MAY OVER -ALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE SERIES 1993 BONDS OFFERED HEREBY AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. This Preliminary Official Statement is in a form deemed final by the City for the purpose of Rule 15c2 -12 under the Securities Exchange Act of 1934, as amended, except for certain information permitted to be omitted under Rule 15c2- 12(b)(1). The Series 1993 Bonds have not been registered with the Securities and Exchange Commission under the Securities Act of 1933, as amended, nor has the Series 1993 Ordinance been qualified under the Trust Indenture Act of 1939, as amended, in reliance upon exemptions contained in such acts. The registration or qualification of the Series 1993 Bonds in accordance with applicable provisions of the securities laws of the States, if any, in which the Series 1993 Bonds have been registered or qualified and the exemption from registration or qualification in certain other states cannot be regarded as a recommendation thereof. Neither these States nor any of their agencies have passed upon the merits of the Series 1993 Bonds or the accuracy or completeness of this Official Statement. Any representation to the contrary may be a criminal offense. ii k TABLE OF CONTENTS Debt of the City ................ Page Page SUMMARY STATEMENT ............ iv RATINGS ....................... 22 INTRODUCTORY STATEMENT ........ 1 LITIGATION .................... 22 AUTHORITY FOR ISSUANCE ......... I ENFORCEABILITY OF REMEDIES ...... 22 THE REFUNDING PLAN ............ 2 CERTAIN LEGAL MATTERS ......... 22 DESCRIPTION OF THE SERIES 12 VERIFICATION OF ARIT14METICAL Selected Statistics 1993 BONDS .................... 3 COMPUTATIONS................. 23 General ...................... 3 Comprehensive Annual Financial Optional Redemption .............. 4 DISCLOSURE REQUIRED BY Reports for the Fiscal Years Ended Mandatory Redemption ............ 4 FLORIDA BLUE SKY REGULATIONS ... 23 Notice of Redemption ............. 5 30, 1991 Book -Entry Only System ........... 5 FINANCIAL ADVISOR ....... . ...... 23 SECURITY FOR THE SERIES 17 UNDERWRITING ................. 23 1993 BONDS .................... 7 the Series 1993 Ordinance and the Series 1993 Bonds Not a 17 MISCELLANEOUS ................ 24 Debt of the City ................ 9 Outstanding Parity Bonds ........... 9 Appendices: MUNICIPAL BOND INSURANCE ....... 10 Appendix A General Description of the City and DEBT SERVICE REQUIREMENTS ...... 12 Selected Statistics SOURCES AND USES OF FUNDS ...... 13 Appendix B Excerpts from the City's Comprehensive Annual Financial THE WATER AND SEWER SYSTEM .... 13 Reports for the Fiscal Years Ended Water System .................. 13 September 30, 1992 and September Sewer System .................. 15 30, 1991 Water and Sewer Capital Improvements .................. 17 Appendix C Summary of Certain Provisions of the Series 1993 Ordinance and the RATES, FEES AND CHARGES ........ 17 Original Ordinance FINANCIAL STATEMENTS .... , ..... 20 Appendix D Information About AMBAC Indemnity Corporation LEGALITY FOR INVESTMENT ........ 20 Appendix E Form of Bond Counsel Opinion TAX EXEMPTION ................. 20 Tax Treatment of Original Appendix F Form of Municipal Bond Insurance Issue Discount ................. 21 Policy f"A R SUNAMY STATEMENT This Summary Statement is subject in all respects to more complete information and to the definitions contained or incorporated in this Official Statement. The offering of the Series 1993 Bonds to potential investors is made only by means of this entire Official Statement. No person is authorized to detach this Summary Statement from the Official Statement or otherwise to use it without this entire Official Statement. The City The City of Clearwater is located in northwestern Pinellas County on the Gulf of Mexico, approximately 22 miles west of Tampa and 16 miles north of St. Petersburg. It is located at the approximate mid -point on the west coast of Florida. Based upon the 1990 U.S. Census, the population of the City was 98,784. Purpose of the Series 1993 Bonds The Series 1993 Bonds are being issued for the purpose of (i) making funds available with which to advance refund the Series 1988A and the Series 1998B Bonds heretofore issued by the City (as further described herein), and (ii) paying certain costs of issuance of the Series 1993 Bonds, including the municipal bond insurance premium. Security for the aeries 1993 Bonds The Series 1993 Bonds and the interest thereon are payable solely from the Net Revenues derived from the operation of the City's water and sewer system, as further described herein. The lien of the Series 1993 Bonds on the Net Revenues is on a parity with the holders of the City's Outstanding Water and Sewer Revenue Bonds, Series 1984 and the Water and Sewer Revenue Bonds, Series 1988, as further described herein. Neither the Series 1993 Bonds nor the interest thereon constitute a general obligation or indebtedness of the City within the meaning of any constitutional, statutory or charter provision or limitation. No owner or owners of any Series 1993 Bonds shall ever have the right to compel the exercise of the ad valorem taxing power of the City, or any other taxing power in any form on any real or personal property of the City, to pay the Series 1993 :Bonds or the interest thereon. The City shall not be obligated to pay the Series 1993 Bonds or any interest thereon except from the Net Revenues, in the manner provided in the Series 1993 Ordinance referred to herein. Municipal Bond Insurance AMBAC Indemnity Corporation ( "AMBAC ") has issued a Commitment for Municipal Bond Insurance to issue a bond insurance policy (the "Municipal Bond Insurance Policy ") relating to the Series 1993 Bonds effective as of the date of issuance of the Series 1993 Bonds. Under the terms of the Municipal Bond Insurance Policy, AMBAC will guarantee the payment of the principal of and interest iv on the Series 1993 Bonds when due, to the extent that sufficient funds for such payment have not been provided. The text of the Municipal Bond Insurance Policy is set forth in Appendix F. The insurance will extend for the term of the Series 1993 Bonds and, once issued, cannot be cancelled by AMBAC. Reserve Account A Reserve Account has been established for the benefit of the Series 1993 Bonds and the outstanding Parity Bonds (as herein defined). Upon issuance of the Series 1993 Bonds, the Reserve Account will be funded in an amount equal to the Maximum Bond Service Requirement on the Series 1993 Bonds and the outstanding Parity Bonds. Rate Covenant The City covenants in the Series 1993 Ordinance to fix, establish and maintain such rates, and collect such fees, rentals and other charges for the services and facilities of the System (as herein defined) and revise the same from time to time whenever necessary as will always provide Gross Revenues in each Fiscal Year sufficient to pay (i) the Cost of Operation and Maintenance of the System in such Fiscal Year, (ii) 115% of the Bond Service Requirement for such Fiscal Year on the outstanding Parity Bonds, on the outstanding 1993 Bonds and on all outstanding Additional Bonds, plus (iii) 100% of all reserve and other payments required to be made pursuant to the Series 1993 Ordinance and the Original Ordinance (as herein defined). Additional Parity Bonds The City may issue Additional Bonds, payable on a parity from the Net Revenues with the Series 1993 Bonds, for the purpose of refunding a part of the Outstanding Bonds, or financing the cost of extensions, additions and improvements to the System and for the acquisition and construction of, and extensions and improvements to, sewer and /or water systems which are to be consolidated with the System and operated as a single combined utility, provided that, among other requirements, certain earnings tests relating historical Net Revenues to the Maximum Bond Service Requirement of all Bonds outstanding after the issuance of such Additional Bonds can be met. Such historical Net Revenues may be adjusted by the Consulting Engineer as provided in the Series 1993 Ordinance and the Original Ordinance. [The remainder of this page intentionally left blank] v Historical Net Revenues and Bond Service Coverage (000's omitted) T [The remainder of this page intentionally left blank] vi Fiscal Years Ended September 30 1988 1989 1990 1991 1992 Net Operating Revenues(') $5,481,663 $8,773,728 $ 9,242,274 $7,570,313 $10,149,315 Interest Income and other Non - Operating Revenues (Expenses) 1,136,361 1,147,112 1.537,983 2,177,347 2.770,034 Total Net Revenues $6,618,024 $9,920,840 $10,780,257 $9,747,660 $12,919,349 Bond Service Requirement: Outstanding Bonds(-' $3.155.930 $3,054,143 $ 5,707,750 $7,252,460 $ 7.251.939 Historical Coverage() 2.21x 3.25 1.89 1.34 1.78 (1) Excluding depreciation (2) Includes the Parity Bonds (Series 1984 and Series 1988) and the Refunded Bonds (Series 1988A and Series 1988B). (3) Maximum Bond Service Requirement on the Parity Bonds and the Series 1993 Bonds, for proposes of comparison, is Source: City of Clearwater, Division of Finance. T [The remainder of this page intentionally left blank] vi f OFFICIAL STATEMENT $53,255,000* CITY OF CLEARWATER, FLORIDA WATER AND SEWER REFUNDING REVENUE BONDS, SERIES 1993 INTRODUCTORY STATEMENT The purpose of this Official Statement, which includes the cover page, the Summary Statement and the Appendices, is to provide information concerning the City of Clearwater, Florida (the "City") and the City's $53,255,000` Water and Sewer Refunding Revenue Bonds, Series 1993 (the "Series 1993 Bonds "). Definitions of certain words and terms having initial capitals used herein and in the Series 1993 Ordinance (as defined below in "Authority For Issuance ") are contained in the "Summary of Certain Provisions of the Series 1993 Ordinance and the Original Ordinance" in Appendix C hereto. The references, excerpts and summaries of all documents referred to herein do not purport to be complete statements of the provisions of such documents, and reference is directed to all such documents for full and complete statements of all matters of fact relating to the Series 1993 Bonds, the security for the payment of the Series 1993 Bonds, and the rights and obligations of holders thereof. The information contained in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. Neither this Official Statement nor any statement which may have been made verbally or in writing is to be construed as a contract with the holders of the Series 1993 Bonds. AUTHORITY FOR ISSUANCE The Series 1993 Bonds will be issued pursuant to the authority of and in full compliance with (a) the charter of the City, (b) the Constitution and the laws of the State of Florida, particularly Chapter 166, Part 1I, Florida Statutes, and other applicable provisions of law, and (c) Ordinance No. 3674 -84 enacted by the City on August 2, 1984, as amended and supplemented (the "Original Ordinance ") and Ordinance No. _ -93 enacted by the City on April _, 1993, as amended and supplemented (the "Series 1993 ' Ordinance "). 'Preliminary, subject to change. I ._ THE REFUNDING PLANS The City and First Union National Bank of Florida, Jacksonville, Florida (the "Escrow Agent "), upon delivery of the Series 1993 Bonds, will enter into an Escrow Deposit Agreement (the "Escrow Agreement "), to provide for the advance refunding of the City's Water and Sewer Revenue Bonds, Series 1988A originally issued and currently outstanding in the aggregate principal amount of $26,635,000 (the "Series 1999A Bonds ") and the City's Water and Sewer Revenue Bonds, Series 1989B originally issued in the aggregate principal amount of $26,457,145.30 of which $23,385,895 is Outstanding, including Accreted Value from the date of issuance and delivery to September 30, 1992 (the "Series 1988B Bonds" and, collectively with the Series 1999A Bonds, the "Refunded Bonds "). The Escrow Agreement creates an irrevocable escrow account (the "Escrow Account ") which is held by the Escrow Agent and the moneys and securities held therein are to be applied to the payment of principal of and premium and interest on the Refunded Bonds at maturity or upon earlier redemption thereof. Immediately upon the issuance and delivery of the Series 1993 Bonds, the City will deposit certain of the proceeds from the sale of the Series 1993 Bonds together with certain other available funds of the City into the Escrow Account. Moneys deposited in the Escrow Fund will be invested, at the direction of the City, in direct obligations of the United States of America (the Escrow Securities ") maturing in amounts and bearing interest at rates sufficient without reinvestment, together with cash held uninvested in the Escrow Fund, to advance refund the Refunded Bonds. The maturing principal of and interest on the Escrow Securities and cash held in the Escrow Fund, in the amounts needed to pay the principal of and interest on, or Accreted Value of, and redemption premium with respect to the Refunded Bonds are pledged solely for the benefit of the holders of the Refunded Bonds. The Series 1988A Bonds maturing after December 1, 1996 will be called for redemption on December 1, 1996, at a redemption price of 102% of the principal amount thereof. The Series 1988B Current Interest Bonds maturing after December 1, 1998 will be called for redemption on December 1, 1998 at a redemption price of 103.5% of the principal amount thereof. The Series 1988B Capital Appreciation Bonds maturing after December 1, 1998 will be called for redemption on December 1, 1998 at a redemption price of 105% of the Accreted Value thereof. The Escrow Securities will be purchased from the Treasury Department of the United States of America or in the open market, in each case at interest rates and prices which will cause the yield thereon, computed in accordance with the provisions of Section 148 of the Internal Revenue Code of 1986, as amended, not to exceed the applicable yield permitted by such provisions. Under the ordinances authorizing the Refunded Bonds, by virtue of the provisions for advance refunding described above, together with the irrevocable deposit and application of moneys and Escrow Securities as provided in the Escrow Agreement and certain other provisions of such agreement, and certain provisions of the resolutions authorizing such Bonds that will be complied with upon the issuance of the Series 1993 Bonds, in the opinion of Bond Counsel, the Refunded Bonds will be deemed to be no longer outstanding under the ordinances authorizing their issuance and, except for the purposes of any payment from such moneys and Escrow Securities, shall no longer be secured by or entitled to the benefits of the respective ordinances authorizing their issuance. The moneys and Iscrow Securities held in accordance with the Escrow Agreement, all interest or other income thereon, and any proceeds from the dispositiiui thereof will he used only to pay the Refunded Bonds and will not be available for payment of debt Service on the Series 1993 Bonds. r X General DESCRIPTION OF THE SERIES 1993 BONDS The Series 1993 Bonds will be dated May 1, 1993, The Series 1993 Bonds will bear interest at the rates and mature on December 1 in the amounts and at the times set forth on the cover page of this Official Statement. The Series 1993 Bonds are to be issued as fully registered bonds in denominations of $5,000 or integral multiples thereof. Interest on the Series 1993 Bonds will be payable on December 1, 1993 and semiannually thereafter on June 1 and December I of each year, by check or draft mailed to the registered owners, at their addresses as they appear on the registration books of the City maintained by the Bond Registrar, as of the 15th day (whether or not a business day) of the month preceding the interest payment date (the "Record Date "). Owners of $1,000,000 or more in aggregate principal amount of Series 1993 Bonds may receive interest by wire transfer, at the Owner's expense, to a bank account designated in writing by the Owner not later than the Record Date. Principal of, and premium if any, are payable at maturity, or upon redemption prior to maturity, upon presentation and surrender thereof at the corporate trust office of the Paying Agent. First Union National Bank of Florida, Jacksonville, Florida, is acting as Paying Agent and Bond Registrar for the Series 1993 Bonds. The Series 1993 Bonds will be initially issued in the form of a single fully registered Bond for each maturity of the Series 1993 Bonds. Upon initial issuance, the ownership of each such Series 1993 Bond will be registered in the registration books kept by the Bond Registrar, in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ("DTC"). While held in book-entry form, all payments of principal, interest and premium, if any, on the Series 1993 Bonds will be made to DTC or the DTC Nominee as the sole registered owner of the Series 1993 Bonds and payments to Beneficial Owners will be the responsibility of DTC and the DTC Participants as described below. See "Book -Entry Only System." With respect to Series 1993 Bonds registered in the name of Cede & Co., as nominee of DTC, neither the City, nor the Paying Agent will have any responsibility or obligation to any DTC Participant or to any indirect DTC Participant. See "Book -Entry Only System" for the definition of "DTC Participant." Without limiting the immediately preceding sentence, neither the City nor the Bond Registrar and the Paying Agent will have any responsibility or obligation with respect to: (i) the accuracy of the records of DTC or any DTC Participant with respect to any ownership interest in the Series 1993 Bonds; (ii) the delivery to any DTC Participant or any other person other than a registered owner, as shown in the registration books kept by the Bond Registrar, of any notice with respect to the Series 1993 Bonds, including any notice of redemption; or (iii) the payment to any DTC Participant or any other person, other than a registered owner, as shown in the registration books kept by the Bond Registrar, of any amount with respect to principal of, premium, if any, or interest on the Series 1993 Bonds. The City, the Bond Registrar and the Paying Agent may treat and consider the person in whose name each Series 1993 Bond is registered in the registration books kept by the Bond Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal of, premium, if any, and interest with respect to such Bond, for the purpose of giving notices of redemption and other matters with respect to such Bond, for the purpose of registering transfers with respect to such Bond, and for all other purposes whatsoever. The Paying Agent will pay all principal of, premium, if any, ;And interest on the Series 1993 Bonds only to or upon the order of the respective registered owners, is shown in the registra- tion books kept by the Bond Registrar, or their respective attorneys duly authorised in writing, ;is provided in the Series 1993 Ordinance, and all such payments will he valid and effectual to satisfy and discharge the City's obligations with respect tit payment tit principal tit. premium. if any, and interest on the Series 1993 Bonds to the extent of the sums so paid. No person other than a registered owner, as shown in the registration books kept by the Bond Registrar, will receive a certificated Bond evidencing the obligation of the City to make payments of principal of, premium, if any, and interest on the Series 1993 Bonds pursuant to the provisions of the Series 1993 Ordinance. Optional Redemption The Series 1993 Bonds maturing December 1, 19 to December 1, 20 are not callable prior to their maturity dates. The Series 1993 Bonds maturing after December 1, 20_ are subject to optional redemption by the City, on and after December 1, 20_ as a whole at any time, or in part on any Interest Payment Date thereafter, from the maturities selected by the City, and by lot within a maturity if less than an entire maturity is redeemed, at the redemption prices (expressed as percentages of principal amount) set forth below, together with accrued interest to the date of redemption: Redemption Period December 1, 20_ through November 30, 20_ December 1, 20 through November 30, 20 December 1, 20— thereafter Mandatory Redemption Price The 1993 Bonds maturing on December 1, 2011 will be subject to mandatory redemption prior to maturity, by lot, in such manner as the Registrar may deem appropriate, at a redemption price equal to Par plus interest accrued to the redemption date, on December 1, 2005, and on each December :1 thereafter, in the following principal amounts in the years specified: Amortization Amortization Year Installment Year Installment 2005 $ 2009 2006 2010 2007 2011* 2008 *Final maturity The 1993 Bonds maturing on December 1, 2018 will be subject to mandatory redemption prior to maturity, by lot, in such manner as the Registrar may deem appropriate, at a redemption price equal to par plus interest accrued to the redemption date, on December I, 2012, and on each December I thereafter, in the following principal amounts in the years specified: Amortization Amortization Year Installment Year Installment 2012 $ 2016 2013 2017 2014 2018* 2015 *Final maturity As long as the book - entry-only system is used for determining beneficial ownership of the 1993 Bonds, notice of redemption will only be sent to Cede & Co. Cede & Co. will be responsible for notifying the RTC Participants, who will in turn be responsible for notifying the Beneficial Owners (as such terms are described below under the heading "Book -Entry Only System "). Any failure of Cede & Co. to notify any DTC Participant, or of any DTC Participant to notify the Beneficial Owner of any such notice, will not affect the validity of the redemption of the 1993 Bonds. Notice of Redemption Not more than 60 days and not less than 30 days prior to the expected redemption date, notice of such redemption shall be filed with the Paying Agent and shall be mailed, postage prepaid to all registered owners of the Series 1993 Bonds to be redeemed at their addresses as they appear on the registration books. Failure to give such notice by mailing to any registered owner, or any defect therein, shall not affect the validity of any proceeding for the redemption of other'Series 1993 Bonds. Interest shall cease to accrue on any Series 1993 Bonds duly called for prior redemption, after the redemption date, if payment thereof has been duly provided. Book-Entry Only System The Series 1993 Bonds will be available in book -entry form only, in denominations of $5,000 or any integral multiple thereof. Purchasers of the Series 1993 Bonds will not receive certificates representing their interests in the Series 1993 Bonds purchased. The Underwriter is to confirm original issuance purchases with statements containing certain terms of the Series 1993 Bonds purchased. The following information regarding The Depository Trust Company, New York, New York ("DTC") and the book -entry only system of registration has been obtained by the City from DTC. No representation is made by the City as to its accuracy or correctness. The Series 1993 Bonds will be held by DTC as securities depository. The ownership of one fully registered Series 1993 Bond for each maturity, as set forth on the cover page hereof, will be registered in the name of Cede & Co., as nominee for DTC. DTC is a limited - purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934, as amended. DTC was created to hold securities of its participants ( "DTC Participants ") and to facilitate the settlement of securities transactions among DTC Participants in such securities through electronic computerized book -entry changes in accounts of the DTC Participants, thereby eliminating the need for physical movement of securities certificates. Direct. Participants include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations, some of which own DTC either directly or through their representatives. Access to the DTC system is also available to other entities such as security brokers and dealers, banks and trust companies that clear through or maintain a custodial relationship with a DTC Participant. Purchases of the Series 1993 Bonds may be made by or through brokers and dealers who are, or act through, DTC Participants. Such DTC Participants and the persons for whom they acquire interests in the Series 1993 Bonds as nominees will not receive certificated bonds, but each DTC Participant will receive a credit balance in the records of DTC in the amount of such DTC Participant's interest in the Series 1993 Bonds, which will be confirmed in accordance with DTC's standard procedures. The ownership interest of the actual purchaser of each Bond (the "Beneficial Owner ") will be recorded in the records of the DTC Participant. DTC Participants are required to provide Beneficial Owners with a written confirmation of their purchase containing details of the acquired Series 1993 Bonds. Transfers of ownership interests in the Series 1993 Bonds will be accomplished by book entry made by DTC and by the DTC Participants who act on behalf of the Beneficial Owners. The Paying Agent will make payments of principal of, redemption premium, if any, and interest on the Series 1993 Bonds to DTC or its nominee, Cede & Co., as registered owner of the Series 1993 Bonds. The current practice of DTC is to credit the accounts of the DTC Participants immediately upon receipt of moneys in accordance with their respective holdings as shown on the records of DTC. Payments by DTC Participants to Beneficial Owners will be in accordance with standing instructions and customary practices such as those which are now in effect for municipal securities held by DTC Participants in bearer form or registered in "street name" for the accounts of customers, and will be the responsibility of DTC Participants and not the responsibility of DTC, the Paying Agent or the City subject to any statutory or regulatory requirements as may be in effect from time to time. The Bond Registrar, the Paying Agent and the City will send any notice of redemption or other notice only to DTC. Any failure of DTC to advise any DTC Participant, or of any DTC Participant to notify the Beneficial Owner, of any such notice and its content or effect will not affect the validity of the redemption of the Series 1993 Bonds called for redemption or of any other action premised on such notice. Redemption of portions of any maturity of the Series 1993 Bonds will reduce the outstanding principal amount of such maturity held by DTC. In such event, DTC may implement, through its book - entry system, a redemption of Series 1993 Bonds held for the account of DTC Participants in accordance with its own rules or other agreements with DTC Participants, and then DTC Participants may implement a redemption of Series 1993 Bonds for the Beneficial Owners. NEITHER THE CITY NOR THE BOND REGISTRAR OR THE PAYING AGENT WILL HAVE ANY RESPONSIBILITY OR OBLIGATION TO DTC PARTICIPANTS OR THE PERSONS FOR WHOM DTC PARTICIPANTS ACT AS NOMINEES WITH RESPECT TO THE REFUNDED BONDS, TIM ACCURACY OF RECORDS OF DTC, CEDE & CO. OR ANY DTC PARTICIPANT WITH RESPECT TO THE SERIES 1993 BONDS OR THE PROVIDING OF NOTICE OR PAYMENT TO DTC PARTICIPANTS OR BENEFICIAL OWNERS OR THE a. SELECTION OF SERIES 1993 BONDS FOR REDEMPTION. In the event of an insolvency of DTC, if DTC has insufficient securities in the fungible bulk of securities in its custody (e.g., due to theft or loss) to satisfy the claims of DTC Participants with respect to deposited securities and is unable by application of (i) cash deposits and securities pledged to DTC to protect DTC against losses and liabilities; (ii) the proceeds of insurance maintained by DTC and /or DTC Participants; or (iii) other resources, to obtain securities necessary to eliminate the insufficiency, DTC Participants may not be able to obtain all of their deposited securities. The City, the Bond Registrar and the Paying Agent cannot give any assurances that DTC, DTC Participants or others will distribute payments of principal of, premium, if any, and interest on the Series 1993 Bonds paid to DTC or its nominee, or any redemption or other notices to the Beneficial Owners or that they will do so on a timely basis or that DTC will serve or act in a manner described in this Official Statement. DTC may determine to discontinue providing its services with respect to the Series 1993 Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In addition, the City may determine to discontinue the use of book -entry transfers through DTC (or any successor securities depository). l.Jnder such circumstances, the City and the Bond Registrar will authenticate and deliver certificated Series 1993 Bonds. In the event that the book -entry only system is discontinued, the following provisions will govern the transfer and exchange of Series 1993 Bonds. The Series 1993 Bonds will be exchanged for an equal aggregate principal amount of corresponding bonds in other authorized denominations and of the same series and maturity, upon surrender thereof at the principal corporate trust office of the Bond Registrar. The transfer of any Series 1993 Bond will be registered on the books maintained by the Bond Registrar for such purpose only upon the surrender thereof to the Bond Registrar with a duly executed written instrument of transfer in form and with guaranty of signatures satisfactory to the Bond Registrar, containing written instructions as to the details of transfer of such Series 1993 Bond, along with the social security number or federal employer identification number of such transferee. The City and the Bond Registrar may charge the registered owners a sum sufficient to reimburse them for any expenses incurred in making any exchange or transfer after the first such exchange or transfer following the delivery of the Series 1993 Bonds. The Bond Registrar or the City may also require payment from the registered owners or their transferees, as the case may be, of a sum sufficient to cover any tax, fee or other governmental charge that may be imposed in relation thereto. Such charges and expenses shall be paid before any such new Series 1993 Bonds shall be delivered. Neither the City nor the Bond Registrar shall be required to register the transfer or exchange of any Series 1993 Bond during the period commencing on the fifteenth day (whether or not a business day) of the month next preceding an interest payment date and ending on such interest payment date or, in the case of any proposed redemption of a Series 1993 Bond, after such Series 1993 Bond or any portion thereof has been selected for redemption. SECURITY FOR THE SERIES 1993 BONDS Net Revenues. The principal of and premium, if any, and interest on the Series 1993 Bonds are payable solely from and secured by an irrevocable first lien upon and pledge of the Net Revenues (as hereinafter defined) derived and collected by the City from the operation of the water and sewer system of the City (the "System "), on a parity with the City's outstanding Water and Sewer Revenue Bonds, Series 1984 and Water and Sewer Revenue Bonds, Series 1988 (the "Parity Bonds "). "Net Revenues" are defined by the Series 1993 Ordinance to include all income or earnings, including any income from the investment of funds, derived by the City from the operation of the System after deduction of current expenses, either paid or accrued, for the operation, maintenance and repair of the System, but not including reserves for renewals and replacements, for extraordinary repairs or any allowance for depreciation. The Series 1993 Bonds do not constitute a general indebtedness of the City within the meaning of any constitutional, statutory or charter provision or limitation. The principal of and interest on the Series 1993 Bonds and all required reserve and other payments shall be made solely from the Net Revenues. The City shall never be required to levy ad valorem taxes on any property therein to pay the principal of and interest on the Series 1993 Bonds or to make any of the required debt service, reserve or other payments, and any failure to pay the Series 1993 Bonds shall not give rise to a lien upon any property of or in the City, except the Net Revenues. Rate Covenant. In the Series 1993 Ordinance and the Original Ordinance, the City has covenanted to fix and maintain such rates and collect such fees, rentals and other charges for the services and facilities of the System and revise the same from time to time whenever necessary which will provide Gross Revenues in each Fiscal Year sufficient to pay (i) the Cost of Operation and Maintenance of the System, (ii) one hundred fifteen per centum (115 %) of the Bond Service Requirement becoming due in such Fiscal Year on the outstanding Parity Bonds, on die outstanding Series 1993 Bonds and on all outstanding Additional Bonds, plus (iii) one hundred per centum (100 %) of all reserve and other payments required to be made pursuant to the Series 1993 Ordinance and the Original Ordinance. Such rates., fees, rentals and other charges will not be reduced so as to render them insufficient to provide Gross Revenues for such purposes. Reserve Account. The Original Ordinance creates a Reserve Account in a sum equal to and sufficient to pay the Maximum Bond Service Requirement on all outstanding Bonds becoming due in any ensuing Fiscal Year. The Maximum Bond Service Requirement for the Outstanding Parity Bonds and the Series 1993 Bonds will be $ The Reserve Account will be fully funded in the amount of $ after the issuance of the Series 1993 Bonds. No further payments will be required to be made into such Reserve Account as long as there shall remain on deposit therein a sum equal to thk$ Maximum Bond Service Requirement on all outstanding Bonds becoming due in any ensuing Fiscal Year. Moneys in the Reserve Account shall be used only for the purpose of payment of maturing principal of or interest on the Bonds when the moneys in the Sinking Fund are insufficient therefor. Interest earnings on funds held in the Reserve Account will be transferred to the Revenue Fund. In lieu of or in substitution for all or any part of the required deposits to the Reserve Account, the City may provide for the deposit of a surety bond or insurance policy from a reputable insurer in accordance with the provisions of the Series 1993 Ordinance. Any withdrawals from the Reserve Account will be subsequently restored from the first moneys available in the Revenue Fund after all required current payments into the Sinking Fund and into the Reserve Account, including all deficiencies for prior payments, have been made in full. Additional Bonds. Additional Bonds, payable on a parity from the Net Revenues with the Series 1993 Bonds and the Parity Bonds, may be issued for the purpose of refunding a part of the outstanding Bonds or financing the cost of extensions, additions and improvements to the System and for the acquisition and construction of, and extensions, additions and improvements to, sewer and /or water systems which are to be consolidated with the System and operated as a single combined utility. Additional Bonds, other than for refunding purposes, will be issued only upon compliance with all of the conditions set forth in the Series 1993 Ordinance, including the fallowing: 9 (1) As certified by a firm of independent certified public accountants, the aggregate amount of Net Revenues for the Fiscal Year preceding the date of issuance of the proposed Additional Bonds, or for any twelve consecutive months during the preceding eighteen months, adjusted as provided below, is not less than 120% of the Maximum Bond Service Requirement in any Fiscal Year thereafter on (a) all Bonds then outstanding, and (b) on the proposed Additional Bonds. (2) Upon recommendation of the Consulting Engineers, the computation of Net Revenues, for purposes of issuing Additional Bonds, may be adjusted by including; (a) 100% of the additional Net Revenues which, in the opinion of the Consulting Engineers, would have been derived by the City from rate increases adopted before the Additional Bonds are issued, if such rate increases had been implemented before the commencement of the period for which such Net Revenues are being certified, and (b) 100% of the additional Net Revenues estimated by the Consulting Engineer to be derived during the first full twelve month period after the facilities of the System are extended, enlarged, improved or added to with the proceeds of the proposed Additional Bonds, provided that the adjustments described in clause (b) may only be made if the Net Revenues, as adjusted under clause (a), equal at least 1.00 times the Maximum Bond Service Requirement in any Fiscal Year thereafter on (i) all Bonds then outstanding, and (ii) on the proposed Additional Bonds. See Appendix C, "Summary of Certain Provisions of the Series 1993 Ordinance and the Original Ordinance - Covenants of the Issuer - Issuance of Additional Bonds." Series 1993 Bonds Not a Debt of the City The Series 1993 Bonds shall not constitute a general obligation or indebtedness of the City within the meaning of any constitutional, statutory or charter provision or limitation, and no Bondholder shall ever have the right to compel the exercise of the ad valorem taxing power of the City or taxation in any form of real or personal property therein for the payment of the principal of and interest on the Series 1993 Bonds or to compel the City to pay such principal and interest from any other funds of the City except the Net Revenues. The Series 1993 Bonds shall not constitute a lien upon any property of or in the City, but shall constitute a lien only on the Net Revenues all in the manner provided in the Series 1993 Ordinance. Outstanding Parity Bonds On November 15, 1984, the City issued its Water and Sewer Revenue Bonds, Series 1984 (the "Series 1984 Bonds ") in the aggregate face amount of $13,050,447.45, of which $5,125,000 currently remains outstanding (the "Series 1984 Bonds "). The outstanding Series 1984 Bonds mature serially through December, 1994. On October 25, 1988, the City issued its Water and Sewer Revenue Bonds, Series 1988, in the original aggregate original face amount of $26,565,063.10 of which $31,220,574 in principal amount or Accreted Value is outstanding as of September 30, 1992. The outstanding Series 1988 Bonds consist of serial and term bonds due through December 1, 2018. Principal and premium, if any, and interest on the Series 1984 Bonds and the Series 1988 Bonds are secured by a pledge of the Net Revenues on a parity with the Series 1993 Bonds. The Series 1984 Bonds and the Series 1988 Bonds are sometimes referred to herein as the "Parity Bonds." mUNICIPA.L BOND INSURANCE AMBAC Indemnity Corporation ( "AMBAC ") has made a commitment to issue a municipal bond insurance policy (the "Municipal Bond Insurance Policy ") relating to the Series 1993 Bonds effective as of the date of issuance of the Series 1993 Bonds. Under the terms of the Municipal Bond Insurance Policy, AMBAC 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 Series 1993 Bonds which shall become Due for Payment but shall be unpaid by reason of Nonpayment by the City (as such terms are defined in the Municipal Bond Insurance Policy). AMBAC will make such payments to the Insurance Trustee on the later of the date on which such principal and interest becomes Due for Payment or within one business day following the date on which AMBAC shall have received notice of Nonpayment from the Trustee. The insurance will extend for the term of the Series 1993 Bonds and, once issued, cannot be cancelled by AMBAC. See Appendix D to this Official Statement for certain information regarding AMBAC and the Municipal Bond Insurance Policy. The form of Municipal Bond Insurance Policy is included as Appendix F hereto. The Municipal Bond Insurance Policy will insure payment only on stated maturity dates and on mandatory sinking fund installment dates, in the case of principal, and on stated dates for payment, in the case of interest. If the Series 1993 Bonds become subject to mandatory redemption and insufficient funds are available for redemption of all outstanding Series 1993 Bonds, AMBAC will remain obligated to pay principal and interest on outstanding Series 1993 Bonds on the originally scheduled interest and principal payment dates including mandatory sinking fund redemption dates. In the event of any acceleration of the principal of the Series 1993 Bonds, the insured payments will be made at such times and in such amounts as would have been made had there not been an acceleration. In the event the Paying Agent or the City has notice that any payment of principal of or interest on a Series 1993 Bond which has become Due for Payment and which is made to a Bondholder by or on behalf of the City has been deemed a preferential transfer and therefore recovered from its 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 AMBAC to the extent of such recovery if sufficient funds are not otherwise available. The Municipal Bond Insurance Policy does not insure any risk other than Nonpayment, as defined in the Policy. Specifically, the Municipal Bond Insurance Policy does not cover: payment on acceleration, as a result of a call for redemption (other than mandatory sinking fund redemption) or as a result of any other advancement of maturity; 2, payment of any redemption, prepayment or acceleration premium: or 3. nonpayment of principal or interest caused by the insolvency or negligence of the Paying Agent, if any. If it becomes necessary to call upon the Municipal Bond Insurance Policy, payment of principal requires surrender of Series 1993 Bonds to the Insurance Trustee together with an appropriate instrument of assignment so as to permit ownership of such Series 1993 Bonds to be registered in the name of AMBAC to the extent of the payment under the Municipal Band Insurance Policy. Payment of interest pursuant to the Municipal Bond Insurance Policy requires proof of Bondholder entitlement to interest payments and an appropriate assignment of the Bondholder's right to payment to AMBAC. Upon payment of the insurance benefits, AMBAC will become the owner of the Series 1943 Bond, or right to payment of principal or interest on such Series 1993 Bond and will be fully subrogated to the surrendering Bondholder's rights to payment. The insurance provided by the Municipal Bond Insurance Policy is not covered by the Florida Insurance Guaranty Association. In cases where the Bonds are issuable in book -entry form, the Insurance Trustee shall disburse principal and interest to a Bondholder only upon evidence satisfactory to the Insurance Trustee and AMBAC that the ownership interest of the Bondholder in the right to payment of such principal and interest has been effectively transferred to AMBAC on the books maintained for such purpose. AMBAC shall be fully subrogated to all of the Bondholders' rights to payment to the extent of the insurance disbursements so made. [The remainder of this page intentionally left blank] DEBT SERVICE REQUIREMENTS Series 1993 Bonds Fiscal Year Ending September 30 Parity Bonds 1993 $ 642,109.00 1994 3,282,780.00 1995 3,264,417.50 1996 897,492.50 1997 897,492.50 1998 897,492.50 1999 897,492.50 2000 897,492.50 2001 897,492.50 2002 897,492.50 2003 897,492.50 2004 897,492.50 2005 1,522,492.50 2006 6,840,242.50 2007 6,840,416.25 2008 6,842,840.00 2009 6,838,670.00 2010 6,839,500.00 2011 6,840,787.50 2012 6,840,062.50 2013 6,841,275.00 2014 6,842,250.00 2015 6,840,000.00 2016 6,840,000.00 2017 6,840,000.00 2018 6,840,000.00 2019 6,840,000.00 Total $112,555,275.25 (1) Net of accrued interest, Principal 12 Interest $ (1) $ Total $ Parity and Series 1993 Bonds Total Debt Service Requirements $ .■ SOURCES AND USES OF FUNDS SOURCES Principal Amount of Series 1993 Bonds Original Issue Discount Accrued Interest Other Available Funds of the Cityt'► Total Sources USES Deposit to Escrow Account Deposit to Interest Account Costs of Issuance including Underwriter's Discount and Bond Insurance Premium Total Uses (1) Includes $ and $ to be released from the Refunded Series 1988A Bonds and Series 1988B Bonds Debt service funds, respectively, and $ to be released from the Reserve Account with respect to the Refunded Bonds. UIE WATER AND SEWER SYSTEM Water System Water Supply. Water supply for the area served by the System is currently derived from existing City wellfields and by the purchase of water from Pinellas County. The City has a bulk water purchase s agreement with Pinellas County that supplies up to 80 percent of the service area's water needs on an as needed basis. The City currently has eighteen (18) production wells scattered throughout the service area, each equipped with automatic control systems. The City water system and the Pinellas County water system are interconnected at seven (7) locations. The City's agreement with Pinellas County requires the City to purchase a minimum of 1,460,000,000 gallons of water from the County within each calendar year, with a maximum amount of water available to the City of 10 million gallons per day. The current rate charged by the County for water sold to the City is approximately $1.32 per thousand gallons. The rate is set by the Board of County Commissioners and is based on a prorated share of revenue cost requirements of the County water system including production and transmission costs required for the supply of water to the Pinellas County water users. The City's water distribution system consists of approximately 515 miles of water mains ranging IL up to 20 inches in diameter. The distribution system contains numerous interconnections between piping, making larger size mains unnecessary for existing flow conditions. City water storage within the distribution system consists of a series of ground -level water storage pumping systems and elevated tank 13 water storage. The City currently has four 5- million gallon ground -level water storage reservoirs, and three 1- million gallon and one 0.3 million gallon elevated water storage tanks. The City's elevated storage tanks are all steel vessels designed to ride on the distribution system. They provide immediate response to pressure and flow demands in the local areas. Raw water within the City of Clearwater has historically been of adequate quality to meet minimum regulatory requirements and has received treatment only in the form of disinfection via chlorination with a limited amount of aeration for sulfide control. Additional treatment has been added in the form of corrosion control (polyphosphate). This type of treatment to date has been compatible with the quality of bulk water purchased from the County. Increasing water demand on the local water resources has led to increasing mineralization of the City supply, but there has been no danger to public health. The following chart shows the average daily water flow on an annualized basis over the past ten years. Source and Volume of Water Pumped* FY City Wells County Total 1983 6.188 8.470 14.658 1984 5.838 9.346 15.184 1985 4.850 10.246 15.096 1986 5.823 9.300 15.123 1987 6.058 9.614 15.672 1988 5.893 10.146 16.039 1989 4.345 11.851 16.196 1990 3.272 12.472 15.744 1991 2.872 11.169 14.041 1992 2.338 12.890 15.228 *Figures shown are million gallons per day, averaged over the Fiscal Year. The number of customers served by the water system has steadily increased over the past years. Table I illustrates the growth in number of customers over the past ten years. Historical Growth in Number of Water Customers Year Water Customers Year Water Customers 1993* 37,996 1988 36,105 1992 37,852 1987 35,738 = 1991 37,771 1986 35,312 1990 36,766 1985 34,890 1989 36,517 1984 34,384 *As of February 1993. All either figures are as of septemher of the year mdtk:ated. 14 The ten largest water customers and their 1992 water use including water revenues received are shown in Table li as follows: Ten Largest Water Customers Fiscal Year ]Ending September 30, 1992 Source: City of Clearwater Sewer System The City's sanitary sewage collection system is composed of slightly more than 321 miles of connector mains, utilizing 79 lift stations. Three treatment plants with a combined design capacity of 28.5 mgd (million gallons per day) are on line and operational. These three plants are the Marshall Street Facility, the Northeast Facility and the East Facility. �,, The Marshall Street Facility was originally constructed in the late 1950's. It was expanded to a capacity of 10 mgd in 1978. When the plant was expanded, it was also upgraded to provide nitrogen control. Marshall Street recently underwent two renovation projects, one of its power wiring and the other of its instrumentation wiring. New sludge thickening equipment and an additional digester were also recently added to the plant. The Northeast Facility, with an advanced secondary treatment capacity of 13.5 mgd, recently completed a construction project to add a flotation thickener for sludge concentration. Other improvements added during the past five years include a final effluent filter for the plant and addition of anaerobic digesters. The East Facility, with a design capacity of 5 mgd advanced secondary treatment, has recently completed a renovation project including replacement of obsolete aerators, new electrical load centers, 15 Water Used Revenues Name of User (in 100 Cubic Feet,) Produced 1. Morton Plant Hospital 72,486 $129,256 2. Church of Scientology FSO 68,696 144,262 3. Equitei Inc. (Holiday Inn Surfside) 55,300 95,129 4. HBE Florida Corporation (430 S. Gulfview Blvd.) 39,088 70,278 5. Baptist Estates of Florida Inc. (Oak Cove & Oak Bluff) 36,226 53,827 6. Bay Winds Ltd. Partnership 35,581 64,753 7. Sheraton Sand Key Resort 35,452 54,910 8. David L. Partis, R.E. Inc. (880 Mandalay) 34,230 53,226 9. Hyprops Inc. (Holiday Inn Gulfview) 27,291 52,406 10. 440 West Inc. 19.363 33.766 Total 423.713 $751..813 Source: City of Clearwater Sewer System The City's sanitary sewage collection system is composed of slightly more than 321 miles of connector mains, utilizing 79 lift stations. Three treatment plants with a combined design capacity of 28.5 mgd (million gallons per day) are on line and operational. These three plants are the Marshall Street Facility, the Northeast Facility and the East Facility. �,, The Marshall Street Facility was originally constructed in the late 1950's. It was expanded to a capacity of 10 mgd in 1978. When the plant was expanded, it was also upgraded to provide nitrogen control. Marshall Street recently underwent two renovation projects, one of its power wiring and the other of its instrumentation wiring. New sludge thickening equipment and an additional digester were also recently added to the plant. The Northeast Facility, with an advanced secondary treatment capacity of 13.5 mgd, recently completed a construction project to add a flotation thickener for sludge concentration. Other improvements added during the past five years include a final effluent filter for the plant and addition of anaerobic digesters. The East Facility, with a design capacity of 5 mgd advanced secondary treatment, has recently completed a renovation project including replacement of obsolete aerators, new electrical load centers, 15 a new sludge division box and metering equipment. An effluent filter and sludge flotation thickeners have been added to this plant since its last expansion. The following chart shows the average daily sewage flow on an annualized basis over the last eight years. Average Sewage Flow The number of customers served by the sewer system has steadily increased over the past years. Table III illustrates the growth in number of customers over the past ten years. Historical Growth in Number of Sewer Customers Year Annual Avg. Daily Flow Fiscal Year In MGD 1985 14.0 1986 13.9 1987 15.6 1988 13.7 1989 14.7 1990 15.2 1991 15.6 1992 15.8 The number of customers served by the sewer system has steadily increased over the past years. Table III illustrates the growth in number of customers over the past ten years. Historical Growth in Number of Sewer Customers Year Sewer Customers Year Sewer Customer 1993* 32,445 1988 31,453 1992 32,373 1987 31,300 1991 31,854 1986 30,500 1990 31,714 1985 30,000 1989 31,523 1984 29,496 *As of February 1993. All other figures are as of September 30 of the year indicated. 16 The ten largest sewer customers and their 1992 water use including sewer revenues received are shown in Table IV as follows: Ten Largest Sewer Customers Fiscal Year Ending September 30, 1992 Sewer Used Revenues Name of User fin 100 Cubic Feet) Produced 1. Morton Plant Hospital 72,186 $156,644 2. Church of Scientology FSO 56,578 122,774 3. Equitel Inc. (Holiday Inn Surfside) 55,300 119,864 4. HBE Florida Corporation (430 S. Gulfview Blvd.) 38,784• 84,161 5. Bay Winds Ltd. Partnership 35,581 76,768 6. Sheraton Sand Key Resort 35,452 76,731 7. Baptist Estates of Florida Inc. (Oak Cove & Oak Bluff) 35,292 76,584 8. David L. Patis Real Estate Inc. (880 Mandalay) 31,189 67,680 9. Hyprops Inc. (Holiday Inn Gulfview) 24,326 52,787 10. 440 West, Inc. 17,040 36,977 Total 401,728 $870.970 Source: City of Clearwater Water and Sewer Capital Improvements The City has recently completed a six -year (1986 -1992) capital improvements program. A portion of the funding for these improvements was derived from the Series 1988 Bonds and the Refunded Bonds and from certain other available funds of the City. The improvements included replacement of approximately 89 miles of pipelines; the improvements of facilities at Reservoir No. 2 to boost system pressures and allow some local wells to be reworked and put back into service; a new connection to Pinellas County's transmission main of new high service pumping facilities; chlorination facilities and corrosion control chemical feed equipment; chlorine dioxide equipment for disinfecting prior to storage; increased storage space for construction materials and equipment; water main extensions; engineering and research drilling of test wells and the conversion of test wells to production wells; the purchase and installation of standby generation equipment; upgrading the three wastewater treatment facilities and expansion of the Northeast Plant to 13.5 mgd from 8.0 mad. At present the City has no future capital financing plans for the System requiring the issuance of Additional Parity Obligations. µ RATES, FEES AND CIIARGES The City uses a three - tiered rate structure for water and sewer usage. The base rate includes a minimum usage for residential and nonresidential water rates. Any usage over the minimum is billed at one rate per 100 cubic feet up to a designated level and at a second rate for usage over that level For 17 irrigation, there is a base rate, with no minimum, and a charge per 100 cubic feet of water usage up to a designated level and a higher charge for usage over that amount. The sewer base rate includes a minimum usage and a fixed charge per 100 cubic feet of water usage over the basic allowance. The minimum usage and second tier usage level vary with the size of the meters. Current and projected future monthly rates for all users are as shown in the following table: October 1, February 1, October 1, October 1, Size of Meter 1991 1992 1992 1993 Residential and Nonresidential Water Rates Minimum - Under 1 inch $ 4.48 $ 5.88 $ 6.12 $ 6.76 -- 1 inch 10.08 13.23 13.76 15.21 -- 1.5 inch 150.08 196.98 204.86 226.46 -- 2 inch 348.32 457.17 475.46 525.59 -- 3 inch or 2 inch manifold 537.60 705.60 733.83 811.20 -- 4 inch 1,034.88 1,358.28 1,412.62 1,561.56 -- 6 inch 2,657.76 3,488.31 3,627.85 4,010.37 - -'8 inch 4,480.00 5,880.00 6,155.20 6,760.00 Additional charges are assessed for cubic feet of usage in I'. excess of designated minimums. Rates for Irrigation (Lawn) Meters Minimum -- under I inch 1.50 2.18 2.18 2.18 -- 1 inch 1,75 6.54 6.54 6.54 -- 1.5 inch 2.50 32.70 32.70 32.70 -- 2 inch 3.25 91.56 91.56 91.56 -- 3 inch 12.75 180.94 180.94 180.94 -- 4inch 17.00 348.80 348.80 348.80 j -- 6 inch 23.75 1,052.94 1,052.94 1,052.94 October 1, February 1, October 1, October 1, I Size of Meter 1991 1992 1992 1993 Sewer Rates Minimum -- Under I inch 8.28 8.88 9.44 11.00 -- I inch 18.63 19.98 21.24 24.75 -- 1.5 inch 277.38 297.48 316.24 368.50 --2 inch 643.77 690.42 733.96 855.25 --3 inch or 2 inch manifold 993.60 1,065.60 1,132.80 1,320.00 - -4inch 1,912.68 2,051.28 2,180.64 2,541.00 ') --6 inch 4,912.11 5,268.06 5,600.28 6,525.75 t -- 8 inch 8,280.00 8,880.00 9,440.00 11,000.00 Per 100 cubic feet of water used over the allowed in minimum 2.07 2.22 2.36 21/5 IN Source: City of Clearwater, Comprehensive Annual Financial Reports for Fiscal Years ended September 30, 1988 through 1992. 19 City of Clearwater, Florida Water and Sewer System Combining Statement of Revenues, Expenses and Changes in Retained Earnings 1988 1989 1990 1991 1992 Operating Revenues: Sales to Customers $18,617,370 $23,586,238 $24,665,051 $24,671,253 $27,724,808 Service Charges to Customers 274,900 310,058 341,200 389,402 25,060.655 356,874 28,081,682 q Total Operating Revenues 18,892.270 23.896,296 25,006,251 Operating Expenses: Personal Services 4,490,972 4,871,001 5,215,970 4,719,382 4,655,884 Purchases for Resale 3,524,516 4,239,432 4,753,894 5,235,331 6,247,788 Operating Materials and Supplies 954,557 1,011,843 937,218 1,151,193 1,408,274 Transportation Utility Service 460,343 1,054,681 548,074 1,031,093 298,305 11054,670 336,185 1,352,296 461,061 1,200,263 Depreciation 2,152,629 2,259,460 2,342,960 2,439,671 3,594,851 j Interfund Administrative Charges 1,234,823 1,528,115 1,446,031 2,878,932 2,799,025 other current Charges: Professional Fees 367,798 362,221 409,716 459,319 260,121 Communications 125,790 206,476 192,289 101,611 120,961 Insurance 257,367 281,640 256,300 236,200 288,910 Repairs and Maintenance 589,653 718,207 788,483 828,207 276,880 3,876 Rentals Miscellaneous 77,840 73,710 95,298 113,424 53,524 Data Processing Charges 241,872 231,461 292,160 34,953 30,690 Provision for Estimated Uncollectible Accounts 30,395 19.295 23,643 43,309 120,611 Total Other Current Charges 1.690,715 1,893,010 2,057,889 1,817,023 19,930,013 1,160,073 21,527,218 Total Operating Expenses 15,563,236 17,382,028 18,106,937 6,554,464 Operating Income (Loss) 3,329,034 6,514,268 ,6,899.314 5,130,642 Nonoperating Revenues (Expenses): Earnings on Investments 1,368,894 1,070,741 1,459,939 2,106,869 2,273,714 Interest Expense and Fiscal Charges (1,564,211) (1,323,918) (1,225,443) (3,561,585) (4,432,568) Amortization of Bond Discount and Issue Costs (42,977) (8,847) (7,211) (57,206) (104,684) Gain on Exchange of Assets 241,672 Losses from Writedowns and Replacements of Fixed Assets (117,775) (18,600) (367,897) (38,757) Loss from Demolition of Sewer Facilities Due to State (3,000,462) D.E.R. Requirements Civil Penalty - Environmental Protection Agency (300,000) Department of Environmental Regulation Grant Other 67,467 76,371 78,044 70,478 496,320 58( 8,622) (204,253) (62,568) (4,238,991) (1,767,218) Income (loss) Before Operating Transfers 2,740,412 6,310,015 6,836,746 841,651 4,787,246 Operating Transfers In Operating Transfers Out (435,946) (384,184) (922,840) (1,078,119) (1,152,239) (435,946) X384,184) (922.340) (1,078,119) (1,152,239) Net Income (Loss) Before Extraordinary Item 2,304,466 5,925,831 5,913,906 (186,468) 3,635,007 Extraordinary Item - Loss on Early Extinguishment of Debt Net Income (Loss) 2,304,466 (3,104,018) 2,821,813 5,913,906 (186,468) 3,635,007 Retained Earnings, Beginning of Year 27,636,790 29,930,077 32,751,890 38,620,539 38,384,228 Contributions to other Funds and Account Groups (11,179) (45.257) (49,843) Retained Earnings, End of Year 529,930,077 $32�751,890 838 .620,539 £38,384,228 342 019,235 Source: City of Clearwater, Comprehensive Annual Financial Reports for Fiscal Years ended September 30, 1988 through 1992. 19 FINANCIAL STATEMENTS statements and Water and Sewer enterprise fund financial statements of the The combined financial end City at September 30, 1992 and September 30, 1991 and for the Fiscal Years then ended, app hereto as Appendix B, have been excerpted for die Fiscal the Years September seen 30 contained 1992 and September Comprehensive Annual Financial Reports 30, 1991. LEGALITY FOR INVESTMENT The Series 1993 Bonds ublic legal investments s s for banks, saving banks, insurance companies, executors, the State of municipal and all other p administrators, trustees and all other nd other public fundso also constitute eligible as collateral security for all state, county, municipal EXEMPTION Code of 1986, as amended (the "Code ") establishes certain requirements The Internal Revenue which must be met subsequent to the issuance anaeelfrom gross eincomelfo93p Bonds of federal income on the Series 1993 Bonds be and remain excluded taxation. Non- compliandate of issuance inter fsthe Series 1993 Bonds regardless of the date on which h ch such income retroactive to the provisions non - compliance occurs and other limits with7inewh' h the p oceeds o include, Series 19931 Bonds and the other which prescribe yield amounts are to be invested require that certain ofnthe United States, on the City hasp ovenanteden the on a periodic basis to the Treasury Series 1993 Ordinance to comply with such requirements in order to maintain the exclusion from feeder gross income of the interest on the Series 1993 Bonds. In the opinion of Bond Counsel, assuming compliance with the aforementioned covenants, under s and existing laws, regulations, judicial decisionin income taxation. i interest interest on the Series 1993oBonds es not from gross income for purposes of item of tax preference for purposes on the thiese 993 Bondsamay belsubject to the alternatiivelminimum tax corporations; however, interest when any Series 1993 Bond is held by a corporation. The alternative minimum taxable income o a f te excess of such corporation must be increased by income (be corporation's fore this adj stment and the alternative tax net operating loss its alternative minimum taxable deduction). "Adjusted Current Earnent intangible personal property taxes imposed pursuant to CS pter 1993 Bonds are exempt from a pres 199, Florida Statutes. Except as described above, Bond Counsel will express no opinion regarding the federal income tax consequences resulting from he ownership ers of Series 19931 Bonds should he aware that the ownership of Series ft 1993 Bonds. Prospective purchasers 1993 Bonds may result in ebt collateral ness incurredlor continued to purchase orf carry lSeries 1993 Blonds 01) deduction for interest on indebtedness the reduction of the loss reserve deduction for property and casualty insurance companies by 15% of certain items, including interest on the Series 1993 Bonds, (iii) for taxable years beginning before 1996, the inclusion of interest on Series 1993 Bonds in "modifies] alternative minimum taxable income" for purposes of the environmental tax imposed on corporations, (iv) the inclusion of interest on the Series 1993 Bonds in earnings of certain foreign corporations doing business in the United States for purposes of a branch profits tax, (v) the inclusion of interest on Series 1993 Bonds in passive income subject to federal income taxation of certain S corporations with Subchapter C earnings and profits at the close of the taxable year, and (vi) the inclusion of interest on the Series 1993 Bonds in "modified adjusted gross income" by recipients of certain Social Security and Railroad Retirement benefits for purposes of determining whether such benefits are included in gross income for federal income tax purposes. PURCHASE, OWNERSHIP, SALE OR DISPOSITION OF THE SERIES 1993 BONDS AND THE RECEIPT OR ACCRUAL OF THE INTEREST THEREON MAY HAVE ADVERSE FEDERAL TAX CONSEQUENCES FOR CERTAIN INDIVIDUAL AND CORPORATE REGISTERED OWNERS. PROSPECTIVE SERIES 1993 REGISTERED OWNERS SHOULD CONSULT WITH THEIR TAX SPECIALISTS FOR INFORMATION IN THAT REGARD. During recent years legislative proposals have been introduced in Congress, and in some cases enacted that altered certain federal tax consequences resulting from the ownership of obligations that are similar to the Series 1993 Bonds. In some cases these proposals have contained provisions that altered these consequences on a retroactive basis. Such alteration of federal tax consequences may have affected the market value of obligations similar to the Series 1993 Bonds. From time to time, legislative proposals are pending which could have an effect on both the federal tax consequences resulting from ownership of Series 1993 Bonds and their market value. No assurance can be given that legislative proposals will not be introduced or enacted that would or might apply to, or have an adverse effect upon, the Series 1993 Bonds. Tax Treatment of Original Issue Discount Under the Code, the difference between the maturity amount of the Series 1993 Bonds maturing in the years 20 through 20_, and the initial offering price to the public, excluding bond houses, brokers or si milar persons or organizations acting in the capacity of underwriters or wholesalers, at which price a substantial amount of Series 1993 Bonds of the same maturity was sold is 'original issue discount." Original issue discount will accrue over the term of such Series 1993 Bonds at a constant interest rate compounded periodically. A purchaser who acquires such Series 1993 Bonds in the initial offering at a price equal to the initial offering price thereof to the public will be treated as receiving an amount of interest excludable from gross income for federal income tax purposes equal to the original issue discount accruing during the period he holds such Series 1993 Bonds, and will increase his adjusted basis in such Series 1993 Bonds by the amount of such accruing discount for purposes of determining taxable gain or loss on the sale or other disposition of such Series 1993 Bonds. The federal income tax consequences of the purchase, ownership and redemption, sale or other disposition of the Series 1993 Bonds which are not purchased in the initial offering at the initial offering price may be determined according to rules which differ from those above. Owners of such Series 1993 Bonds should consult their own tax advisors with respect to the precise determination for federal income tax purposes of interest accrued upon sale, redemption or other disposition of Series 1993 Bonds and with respect to the state and local tax consequences of owning and disposing of such Series 1993 Bonds. 91 RATINGS Standard & Poor's Corporation ( "Standard & Poor's ") and Moody's Investors Service, Inc. ( "Moody's ") are expected to issue their ratings of "AAA" and "Aaa," respectively, with respect to the Series 1993 Bonds, based on the issuance of the Municipal Bond Insurance Policy by AMBAC Indemnity Corporation. The ratings reflect the view of Standard & Poor's and Moody's and any explanation of the significance of such ratings may be obtained only from Standard & Poor's and Moody's. There is no assurance that such ratings will remain in effect for any given period of time or that such ratings may not be lowered or withdrawn entirely by the rating agencies, if in their opinion or judgment, circumstances so warrant. Any downward revision or withdrawal of the ratings may have an adverse effect on the market price and marketability of the Series 1993 Bonds. LITIGATION In the opinion of the City Attorney there is no litigation now pending or threatened (i) to restrain or enjoin the issuance or sale of the Series 1993 Bonds or (ii) questioning or affecting the validity of the Series 1993 Bonds, the Series 1993 Ordinance or the pledge of the Net Revenues by the City or the proceedings for the authorization, sale, execution or delivery of the Series 1993 Bonds. The City is involved in certain litigation and disputes incidental to its operations. Upon the basis of information presently available, the City Attorney believes that there are substantial defenses to such litigation and disputes and that, in any event, any ultimate liability, in excess of applicable insurance coverage, resulting therefrom will not materially adversely affect the financial position or results of operations of the City. ENFORCEABILITY OF REMEDIES The remedies available to the registered owners of the Series 1993 Bonds upon an event of default under the Series 1993 Ordinance are in many respects dependent upon judicial actions which are often subject to discretion and delay. Under existing constitutional and statutory law and judicial decisions, including specifically Title 1I of the United States Code, the remedies specified by the federal bankruptcy code, the Series 1993 Ordinance and the Series 1993 Bonds may not be readily available or may be limited. The various legal opinions to be delivered concurrently with the delivery of the Series 1993 Bonds (including Bond Counsel's approving opinion) will be qualified, as to the enforceability of the various legal instruments, by limitations imposed by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors enacted before or after such delivery. CERTAIN LEGAL MATTERS Certain legal matters in connection with the issuance of the Series 1993 Bonds are subject to the approval of Bryant, Miller and Olive, P.A., Tallahassee, Florida, Bond Counsel, whose approving opinion will be available at the time of delivery of the Series 1993 Bonds and will be printed on such Bonds. The proposed form of Bond Counsel opinion is attached hereto as Appendix E and reference is made to such form of opinion for the complete text thereof. Certain legal matters will be passed upon 22 for the Underwriter by its Counsel, Schifino & Fleischer, P.A., Tampa, Florida. Certain legal matters will be passed upon for the City by M.A. Galbraith, Jr., Esq., City Attorney. VERIFICATION OF ARITHMETICAL COMPUTATIONS The accuracy of (a) the arithmetical computation of the adequacy of the maturing principal amounts and interest earnings thereon of the Federal Securities deposited under the Escrow Agreement to pay when due all principal of and interest on the Refunded Bonds and (b) the arithmetical computation supporting the conclusion that the Series 1993 Bonds are not "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, will be verified for the City by Ernst & Young, Independent Certified Public Accountants. Such verification will be based on certain information supplied to Ernst & Young by the Underwriter. DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS Section 517.051, Florida Statutes, and the regulations promulgated thereunder (the "Disclosure Act ") require that the City make a full and fair disclosure of any bonds or other debt obligations that it has issued or guaranteed and that are or have been in default as to principal or interest at any time after December 31, 1975 (including bonds or other debt obligations for which it has served only as a conduit issuer such as industrial development or private activity bonds issued on behalf of private businesses). The City is not, and has not since December 31, 1975, been in default as to principal and interest on bonds or other debt obligations for which ad valorem or non -ad valorem revenues of the City are pledged. FINANCIAL ADVISOR The Financial Advisor for the City is Raymond James & Associates, Inc. with offices located at 880 Carillon Parkway, St. Petersburg, Florida 33716, telephone number (813) 573 -8268. The Financial Advisor will structure and purchase for sale to the Escrow Account a portion of the portfolio of Escrow Securities, as described in the section "The Refunding Plan" herein, for which the Financial Advisor is being compensated. UNDERM`RITING The Series 1993 Bonds are being purchased by Smith Barney, Harris Upham & Co. Incorporated (the "Underwriter "). The Underwriter has agreed to purchase the Series 1993 Bonds at an aggregate purchase price of $ (net of original issue discount of $ and Underwriter's discount of $ ) plus accrued interest on the Series 1993 Bonds from the date thereof to the date of delivery ($ ). The Bond Purchase Contract provides that the Underwriter will purchase all the Series 1993 Bonds if any are purchased, and that their obligation is subject to the delivery of certain documents at or prior to delivery of the Series 1993 Bonds. The initial public offering prices set forth on the cover page may be changed by the Underwriter. The Underwriter is purchasing for sale to the Escrow Account a portion of the portfolio of Escrow Securities, as described in the section "The Refunding Plan" herein, for which the Underwriter is being compensated. 23 AUSCELLANEOUS The references, excerpts and summaries of all documents referred to herein do not purport to be complete statements of the provisions of such documents, and reference is directed to all such documents for full and complete statements of all matters of fact relating to the Series 1993 Bonds, the security for the payment of the Series 1993 Bonds, and the rights and obligations of holders thereof. The information contained in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. Neither this Official Statement nor any statement which may have been made verbally or in writing is to be construed as a contract with the holders of the Series 1993 Bonds. The execution and delivery of this Official Statement by its Mayor and its City Manager has been duly authorized by the City Commission. CITY OF CLEARWATER, FLORIDA Rita Garvey, Mayor and Commissioner Michael Wright, City Manager a April _, 1993 J 24 GENERAL INFORMATION RELATING TO THE CITY OF CLEARWATER, FLORIDA Location APPENDIX A The City of Clearwater, the County Seat of Pinellas County (the third most populous County in Florida), is geographically located in the middle of the west coast of Florida on the Gulf of Mexico. It is situated approximately 22 miles west of Tampa and 16 miles north of St. Petersburg. Standing on the highest coastal elevation of the State, the City limits comprise approximately 27 square miles of land and 8.5 square miles of waterways and lakes. Clearwater Beach, a corporate part of the City, is a beach community connected to the mainland by Memorial Causeway, afour -lane, toll -free drive stretching almost two miles across Clearwater Harbor. Business on Clearwater Beach is mainly tourist- oriented, with hotels, motels and gift shops. Many fine homes, apartments and condominiums offer pleasant, semi - tropical island accommodations to permanent residents and winter and summer visitors. history The area now known as Clearwater was first explored in 1528 by Panfilo de Narvaez, a Spanish explorer who encountered a large tribe of Indians, which his army drove out. The Indians recaptured their territory and held it until the Seminole Wars of 1835 -42. The Indians who inhabited this area are said to have called it "Pocotopang," meaning "clear water," for the many springs of clear, fresh water that bubbled along the shore and even below the waterline at low tide. Settlers began moving into the area around the time of the Seminole Wars. After the wars ended, the territory was opened by the Federal government for homesteading under the Armed Occupation Act. e� The first land title was granted in 1842. The early settlement, named "Clear Water Harbor," was incorporated in 1897. "Clear Water" later became one word and "Harbor" was dropped in 1906 when Pinellas County was created by an act of the State Legislature. In May 1911, Clearwater became the County Seat and Clearwater was chartered as a municipality on May 27, 1915. Government and Administration Clearwater has a Commission- Manager form of government. Four Commissioners and a Mayor - Commissioner are elected at large to serve overlapping two -year terms. They appoint the City Manager and the City Attorney. All other administrative and professional positions are appointed by the City Manager in accordance with the City's Civil Service System. In 1976, Clearwater was selected to receive an I.C.M.A. Management Innovation Award for its nationally recognized community planning and growth control procedures. The City has approximately 1,609 employees, covered by the City's Civil Service law relating to recruitment, promotion, evaluation and discipline based on merit principles. Three employee unions represent the City's civil labor force: Fraternal Order of Police; International Association of Fire Fighters; Communications Workers of America. A -1 Transportation Pinellas County and Clearwater are served by three major causeways and bridges over Tampa Bay, by U.S. 19 and I -275 to the north and south, by I-4 and U.S. 60 to the east. State Roads 590, 686 and 55 also afford access to the City. Tampa International Airport, located approximately twen ty miles from downtown Clearwater, Provides air travel access with over 230 flights a day to 62 domestic cities and foreign locations. Limousine and taxi service to and from the airport is available from Clearwater and throughout Pinellas County. St. Petersburg - Clearwater International Airport, five miles from downtown Clearwater, offers regularly scheduled passenger service and charter and special group flights, on a more limited basis to both domestic and foreign destinations, particularly to Canada and Mexico, Central and South America. The Clearwater Executive Airport, which is slightly over a mile from the downtown business section, Provides service and maintenance for private plane owners. The airport has one 3,000 foot hard - surface runway and facilities for visiting and locally based planes. The Port of Tampa (22 miles to the east) is the closest deep water port. The port is serviced by a variety of steamship agents and operators. The United States Coast Guard maintains an Clearwater Harbor opposite Sand Key. air station at the St. Petersburg - Clearwater International Airport, and a search and sea rescue cutter station on Gulf Coast Motor Lines provides service daily between Clearwater, St. Petersburg and Tampa and makes connections with Greyhound and Trailways Bus Lines in Tampa. Scenic tours are available via Gray Line out of Clearwater and St. Petersbur g, and both Gray Line and Gulf Coast have buses for charter. Pinellas Suncoast Transit System maintains 54 routes in 19 municipalities in Pinellas County. ' Utilities, Public Services and Community )Facilities The City owns and operates its own water, sewer gas from wholesale purchases from the Pinellas gas and solid waste systems. Water is obtained of from 18 deep wells owned and operated by the Cit y an County Water System. Sewage is treated at three pollution control sewage treatment plants with a total capacity of 28.5 million gallons per day. Florida Gas Transmission Company, is distributed through 452 miles of gas mains t agreements ly 12,063 connections. It is the policy of the City to set rates and charges for utility and other public services so that each enterprise activity is self- sustainin approximately 350 miles of paved streets, 17 miles of unpaved streets, c9 miles eof aleys,e120 maintains storm storm sewers, 35 miles of drainage ditches and 37 ponds or lakes. Solid waste is collected City -wide on a regular basis and transported to the resource recovery plant in Pinellas County. Electric power is provided by Florida Power Corporation and telephone service is provided by General Telephone Company. Vision Cable of Pinellas, Inc. provides cable television service under a franchise with the City. Local editions of the daily St. Petersburg Times and The Tampa Tribune, plus weekly newspapers from adjacent Dunedin, Largo, Seminole and Clearwater Beach are widely } distributed. Clearwater has its own municipal library which has over 431,355 volumes in four branches. The City offers over 42 acres of public beach front, parks, playgrounds, athletic courts and fields, pools, a 4,370 seat baseball and softball stadium, golf course, civic and recreational centers, 3.5 miles of A -2 recreational paths, boat ramps and a 210 slip yacht basin and marina. The Philadelphia Phillies conduct spring training at the municipal baseball stadium and have a long -term contract for farm club training on Clearwater's specially constructed facilities during the Winter Instructional League Program. Clearwater is the home of the Clearwater Bombers, national amateur fastpitch softball team. Tourism The State Division of Tourism reported that approximately 40,536,195 tourists came to Florida during 1992. Approximately 3,792,000 of them visited Pinellas County and 1.4 million visited Clearwater. Clearwater's Fun 'N Sun Festival each spring attracts thousands of visitors. Education The Pinellas County School System operates 74 elementary schools, 21 middle schools and 15 high schools within the County which are attended by approximately 90,086 students in kindergarten through the 12th grade. Private schools and academies are also located within or near the City limits. The Pinellas County School System offers vocational and adult education at facilities in or adjacent to the City. In addition, St. Petersburg Junior College has a Clearwater campus and Eckerd College in St. Petersburg, Beacon College in Largo, Stetson University College of Law in Gulfport, the University of South Florida and the University of Tampa in Tampa offer nearby college and post - graduate education. Industry, Commerce and Labor Light, clean industry is encouraged in Clearwater. In 1957, the City of Clearwater developed a 100 acre industrial park adjacent to the Clearwater Air Park (Executive Airport) and to the CSX Transportation Company. There is also a privately owned, 35 acre industrial park. Large industries located near Clearwater include Honeywell, General Electric, UNISYS, Concept and Hercules Defense Electronics Systems, Inc. Pension Plans The Employees' Pension Plan and the Fireman's Pension Plan are self - administered by the City. Both plans had unfunded liabilities as of September 30, 1992, the funding of which is being amortized over a 35 year period for the Fireman's Plan, and over a 40 year period for the Employees' Plan (except for a portion of net actuarial deficiency resulting from Plan amendments approved in December 1978, and from changes in actuarial assumptions which are being funded over 30 year periods). City contributions for fiscal year 1991 -1992 were $3,595,232 to the Employees' Plan and $675,938 to the Fireman's Plan, and were in accordance with actuarially determined funding requirements. In addition, supplemental pensions exist for eligible Police and Fire employees, funded from excise taxes on gross receipts from premiums on certain insurance policies covering property in Clearwater, collected by the State and remitted to the City. Neither the City nor the employees contribute under these plans. Both plans require benefits to be adjusted to equal funds assets provided by the defined contributions. A -3 Demographic Information Last Ten Years W (a) 1981 - 1989, U.S. Bureau of Census estimate; 1990 Census; 1991: University of Florida, Bureau of Economic and Business Research. (b) Data is for Pinellas County, but should approximate Clearwater levels. Source of Data is the U.S. Department of Commerce, Bureau of Economic Analysis. (c) Pinellas County level data, but should approximate Clearwater levels. Source of data is the St Petersburg Times Research Bureau, 1982 -1985; 1991 -1992 U.S. Bureau of the Census. (d) 1982 -1990, Clearwater Planning Department pro rata estimate of Pinellas County School Board data; 1991 -1992 Pinellas County School Board. (e) Data is for the Tampa /St. Petersburg SMSA. Published by the Florida Department of Labor and Employment Security. Construction Value and Building Permit: (a) Permanent (b) Per Capita (c) Median (d) School (e) Unemployment Year Population Income AR Enrollment Rate ( %) 1983 91,879 $13,288 43.8 10,203 4.6 5.8% 1984 93,648 14,601 44.7 45.3 10,349 10,432 5.7 1985 1986 95,330 97,882 15,902 17,039 Not avail. 10,494 5.3 1987 99,124 17,947 Not avail. 10,797 5.0 4.7 1988 100,202 19,317 Not avail. 10,922 5.3 1989 101,082 21,255 Not avail. 10,796 4.8 1990 98,784 21,703 Not avail. 12,732 11,572 6.1 1991 1992 99,612 99,856 Not avail Not avail. 42.1 42.3 11,921 5.4 (a) 1981 - 1989, U.S. Bureau of Census estimate; 1990 Census; 1991: University of Florida, Bureau of Economic and Business Research. (b) Data is for Pinellas County, but should approximate Clearwater levels. Source of Data is the U.S. Department of Commerce, Bureau of Economic Analysis. (c) Pinellas County level data, but should approximate Clearwater levels. Source of data is the St Petersburg Times Research Bureau, 1982 -1985; 1991 -1992 U.S. Bureau of the Census. (d) 1982 -1990, Clearwater Planning Department pro rata estimate of Pinellas County School Board data; 1991 -1992 Pinellas County School Board. (e) Data is for the Tampa /St. Petersburg SMSA. Published by the Florida Department of Labor and Employment Security. Construction Value and Building Permit: (a) Includes institutions, churches, :seawalls, pools and non - valued building permits. A -4 Miscellaneous Constructions °) Number City of Clearwater, Florida 3,005 Commercial Construction Residential Construction Fiscal Year Number of Permits _ Value Number of Permits Value 1986 597 $ 61,726,247 1,244 $ 83,486,773 1987 626 42,649,623 1,378 46,939,249 1988 731 45,510,427 1,385 42,150,294 1989 705 121,554,308 1,127 37,140,105 1990 782 47,382,330 1,018 74,169,490 1991 626 24,250,916 1,260 34,937,357 1992 . 557 32,765,807 1,137 25,956,814 (a) Includes institutions, churches, :seawalls, pools and non - valued building permits. A -4 Miscellaneous Constructions °) Number of Permits Value 3,005 $ 6,766,50b 4,454 9,198,587 3,411 13,219,492 4,326 22,579,744 4,991 16,983,323 5,906 17,452,664 5,940 18,020,294 Ten Largest Employers In Pinellas County 1993 Number Name of Employer Type of Business of Employees 1. Pinellas County School System Public education 15,000 2. Pinellas County Government Government services 4,100 3. Times Publishing Co. Newspaper publishing 3,900 4. Home Shopping Network Merchandising 3,781 5. Honeywell Space Systems Aerospace, avionics 3,600 6. City of St. Petersburg City government 3,119 7. Morton Plant Hospital Hospital 3,000 8. Florida Power Corp. utility 2,832 9. AT&T Paradyne Corp. Data communications 2,500 10. St. Petersburg /Clearwater Int'l. Airport* Airport 2,500 *Includes employees at 38 businesses. Assessed and Estimated Actual Property Valuations Assessed Valuations() Fiscal Non - Exempt Personal Other Total Total % Year Real Estate Proverty Prove Pro a ('l Taxable Exemnt<`) Total All 1983 $2,125,536,540 $234,093,076 $510,380 $2,360,139,996 $692,639,522 $3,052,779,518 1984 2,278,052,100 248,990,190 510,380 2,527,552,670 883,746,177 3,411,298,847 1985 2,446,057,910 269,949,700 944,907 2,736,952,517 923,634,695 3,660,587,212 1986 2,724,424,890 X289,744,250 586,416 3,014,755,556 977,758,085 3,992,513,641 1987 3,080,652,280 313,835,680 817,629 3,395,305,589 1,001,043,393 4,396,348,982 1988 3,270,695,390 349,895,280 545,157 3,621,135,827 1,081,534,811 4,702,670,638 1989 3,388,838,210 352,914,960 484,002 3,742,237,172 1,148,090,371 4,890,327,543 1990 3,485,372,470 370,827,590 484,376 3,856,684,436 1,192,855,367 5,049,539,803 1991 3,745,222,768 378,841,070 500,188 4,124,564,026 1,232,097,193 5,356,661,219 1992 3,799,734,064 379,338,740 509,202 4,179,582,006 1,296,139,766 5,475,721,772 (a) Valuation is established by the County Property appraiser as of December 31 preceding the beginning of the applicable Fiscal Year of the City on October 1 of tits following calendar year. (b) Railroad and Telegraph Companies. (c) Includes governmental, educational, qualified religious, literary, scientific and health care properties and special exemptions for individual property owners. Qualified property owners are entitled to a $25,000 homestead exemption based on f residency requirement. A -5 Property Tax Levies and Collections Percent Percent of f of Total Delinquent Current Percent of Delinquent Collections Outstanding Taxes to Fiscal Total Tax Levy Tax Total Tax To Current Delinquent Current Year Tax Levy Collections' Collected Collections Collections Levy Taxes Levy, 1983 $ 9,531,471 $ 9,422,581 98.86% $14,856 $ 9,437,437 99.01% $ 2767426 2.90% 2.78 1984 10,957,983 10,835,796 98.88 93,510 10,929,306 99.74 98.85 305,103 440,864 3.75 " 1985 11,766,901 11,605,379 98.63 25,761 11,631,140 13,271,698 98.73 611,497 4.55 li 1986 13,442,331 13,259,621 98.64 98.27 12,077 6,252 14,848,908 98.31 866,941 5.74- 1987 15,104,352 18,093,427 14,842,656 17,855,707 98.69 77,643 17,933,350 99.12 1,027,018 5.68 1988 1989 18,999,668 18,818,443 99.05 189,760 19,008,203 100.04 1,018,483 5.36 6.02 4 1990 19,676,174 19,474,325 98.97 35,223 19,509,548 99.15 1,185,109 1,280,545 6.00 1991 21,336,807 21,145,636 99.10 95.735 21,241,371 9.41 9 99.14 1,387,456 6.50 'j 1992 21,369,980 21,075,554 98.62 109,316 21,184,870 * Collections are reported at the gross amount before any discount allowances 1 Property Tax Rates - All Overlapping Governments (Per $1,000 of Assessed Value) Downtown County Emergency Fiscal Develop- School Transit District Medical Services Other<b' Total Year cit ment(" Board Coun 1983 4.0598 0.742 6.9400 4.095 .1800 .900 .8332 17.7500 18.5292 1984 4.3690 1.000 7.0710 4.311 .2042 .926 .6480 .7452 18.3021 1985 4.3030 1.000 6.8994 7.2450 4.093 4.139 .3295 .4315 .932 .886 .6955 18.8528 1986 4.4558 1.000 1.000 7.5020 4.258 .4536 .931 .7013 19.3017 1987 1988 4.4558 5.0000 1.000 7.3370 4.915 .4987 .931 1.2933 1.3775 20.9750 20.7310 1989 5.1000 .250 7.6500 4.909 .5135 .931 1.060 .9617 22.3690 1990 5.1000 .860 8.5330 5.280 5.234 .5743 .700 1.0964 22.5744 1991 5.2037 1.000 8.7660 8.6260 5.495 .5743 .5893 .700 1.1560 22.6821 1992 5.1158 1.000 (a) A separate taxing district established by referendum which affects only downtown properties. Florida Water Management District (3400); Pinellas (b) Other includes Pinellas County Planning Council (.0298); Juvenile Welfare Board (.5592); SW - Anclote River Basin (.2270). '.i i A -6 source: Pinellas County Property Appraiser Ten Largest Taxpayers City of Clearwater Florida Taxable Assessed Value Ratio of Net Year Ended September 30, 1992 Percentage to Total Assessed Assessed ,rte Tvue of Business Value Value rs Taxable Net General $ 75,484,800 1.99% Bellwether Prop. LP Ltd. Shopping Center Shopping Center 62,000,000 1.63 0.91 Trizec Western Inc. Landowner 34,631,800 0.63 John S. Taylor, III Church of Scientology Conglomerate 23 885,100 17,893,300 0.47 Sand Key Association LTD Hotel Adult Congregate Facility 17,586,700 0.46 0.45 Sylvan Abbey Adult Congregate Facility 16,954,100 0.44 Resolution Trust Corp. 93,648 95,330 16,701,400 16 Equitel One LTD Partnership Motels Office Building 13,846,100 13,844,70 0 0.36 0.36 MAS First Florida Bank Hotel $292,828,000 _ 7.70 a Total 07 23.90 17.05 1988 1989 source: Pinellas County Property Appraiser rr City of Clearwater Florida Taxable Assessed Value Ratio of Net onded Debt to an�rr\IeB Bonded Debt Per Capita Last Ten Fiscal Years Ratio of Net Net Taxable Net General General Bonded Debt General Bonded Assessed Bonded To Assessed Fiscal Value 000 Debt tl) Value Per Per Capita Y� Popu^ lation '— 1983 91,879 $2,360,140 $5,324,814 4,815,155 .23 19 57.95 51.42 1984 93,648 95,330 2,527,553 2,736,953 4,250,761 16 44.59 37,36 1985 1986 97,882 3,014,756 3,657,278 3,037, .12 09 30.64 1987 99,124 100,202 3,395,306 3,621,136 2,395,2290 90 07 23.90 17.05 1988 1989 101,082 3,742,237 1,723,137 1,567 .05 03 10.49 1990 98,784 99,612 3,856,684 ,234 4,124,564 567,950 01 5.70 4.53 1991 99,856 4,179,582 452,779 01 1992 bonded debt less amounts on deposit in sin king funds or debt service lunds. (t) Gross general A -7 rr City of Clearwater, Florida Computation of Direct and Overlapping September 30, 1992 Debt Principal City .Clearwater Debt - Ci of Clearwater Amount Outst— a— ndmg — Share of General Obligation Debt Percent Debt City of Clearwater, Series 1978 Revenue Debt 725,000 100 $ 725,000 City of Clearwater Parking Revenue Bonds, Series 1983 Capital Improvement 525,000 100 Revenue Bonds, Series 1984 525,000 City of Clearwater Public 192,000 100 192,000 Service Tax and Bridge Revenue Bonds, Series 1985 Community Redevelopment 5,655,000 100 5,655,000 Agency of the City of Clearwater Tax Increment and Lease Revenue Bonds, Series 1986 Community Redevelopment 1,630,000 100 1,630,000 Agency of the City of Clearwater Tax Increment Revenue Bonds, Series 1987 Water and Sewer Revenue 700,000 100 700,000 Bonds, Series 1984 Water and Sewer Revenue 5,125,000 100 5,125,000 Bonds, Series 1988 - Water and Sewer Revenue 31,220,574 100 31,220,574 Bonds, Series 1988A Water and Sewer Revenue 26,635,000 100 26,635,000 Bonds, Series 1988B Gas System Revenue 23,385,895 100 23,385,895 Bonds, Series 1991 7,680,000 100 7,680,000 Notes, Mortgages and Contracts 10,560 537 Total City of Clearwater Debt 100 10,560 537 $114,034,006 100 $114,034,006 A -8 „® A -9 Principal City Amount Share of School Board Debt Outstandine Percent Debt Pinellas County School Board $ 740,000 14.40 $ 106,578 Overlapping Debt - Pinellas County Second Guaranteed Entitlement Bonds, Series 1988 4,600,000 14.40 662,513 Recreation and Library Facilities Revenue Bonds, Series 1986 246,000 14.40 35,430 Pinellas County Capital Improvement Revenue Bonds, Series 1991 79,696,000 14.40 11,478,187 Pinellas County Sports Authority Revenue Bonds (Stadium Project) 34,412.000 14.40 4.956.176 Total Pinellas County Overlapping Debt $118,954,000 14.40 $17,132,306 „® A -9 } r. a APPENDIX B EXCERPTS FROM THE CITY'S COMPREHENSIVE ANNUAL FINANCIAL REPORTS AND RELATED EXPLANATORY NOTES The financial statements which follow were excerpted from the financial statements contained in the City's comprehensive annual financial reports for the fiscal years ending September 30, 1992 and September 30, 1991. The explanatory notes which follow were prepared by the City Finance Department based on the pertinent information contained in the notes to the financial statements appearing in the comprehensive annual financial reports specified above. CITY OF CLEARWATER. FLORIDA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GKOUPS SEPTEMBER 30 1992 WITH COMPARATIVE TOTAL FIGURES FOR 1991 Governmental Fund Types Special Debt Capital General Revenue Service Pro acts 1 ASSETS AND OTIJER DEBITS Cash on Hand and in Banks $ 19,980 Equity in Pooled Cash and Investments 10,895,424 12,599,436 1,818,561 27,377,615 # Cash with Escrow Agent 4,497 t;. Investments 285,190 Receivables (Net Where Applicable, of Allowances for Estimated Uncollectible Amounts): Accounts and Contracts 331,409 Mortgages, Notes and Other Loans 79,710 Accrued Revenues 1,328,744 9,616 7,953 interest and Dividends; Rehabilitation Advances Delinquent Property Taxes 490,370 42,994 Other Due from Other Funds k: Due from Other Funds (Deficit in Pooled Cash) 3,686,157;' Due from Other Governmental Entities t 791,806 1,242,625 113,347 inventories, at Cost I Prepaid Expenses/Expenditures' <` and Other Assets 13,174 I Restricted Assets: k. Equity in Pooled Cash and Investments Due from Other Funds Due from Other Governmental Entities Investments, At Cost or e Amortized Cost Interest Receivable Advances to Other Funds 75,324 Deferred Charges Property, Plant and Equipment (Net of Accumulated Depreciation) Amount Available in Debt Service Funds Amount to be Provided for Retirement of General Long -Term Debt Amount to be Provided for Compensated Absences _ $ 13,946,231 13,974,381 2,116,201 31,177,119 'I See accompanying notes to Financial Statements. f M M I ff v Page 1 of 2 Fiduciary Totals Proprietary Fund Types Fund Type Account Groups (Memorandum Only) General General Internal Trust and Fixed Long -Term Enterprise Service Agency Assets Debt 1992 1991 20,525 1,775 12,257 54,537 418,751 4,110,807 11,218,612 2,740,707 70,761,162 71,588,078 293 4,790 34,548 180,237,139 180,522,329 153,772,734 5,533,456 149,125 6,013,990 5,432,607 3,142,395 3,222,105 3,096,051 1,346,313 1,378,960 3,172,654 3,172,654 2,812,980 235 235 1,000 533,364 479,117 140,000 34,972 174,972 79,787 15,293,834 1,538,134 16,831,968 18,166,196 3,686,157 3,426,538 319,887 2,467,665 1,956,088 1,038,452 166,601 1,205,053 1,013,372 27,625 188,558 229,357 82,182 27,908,516 27,908,516 27,923,913 4,990,806 4,990,806 7,185,643 141,646 141,646 279,647 6,603,278 534,063 7,137,341 6,629,405 172,573 5,748 178,321 178,360 171,838 2,791,836 3,038,998 4,264,038 1,797,127 1,797,127 1,984,797 181,395,093 13,318,471 95,141,655 289,855,219 272,336,316 2,116, 201 2,116,201 1,372,329 4,812,655 4,812,655 6,037,662 2,657,968 2,657,968 2,300,890 249,525,756 30,052,923 189,340,359 95,141,655 9,586,824 634,861,449 594,231,989 M M I ff v ®, CITY OF CLEARWATER, FLORIDA COMB1 _) BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS, C HUED SEPTEMBER 30J992 WITH COMPARATIVETOTAL. FIGURES FOR 1991 Governmental Fund Types Special Debt Capital General Revenue Service Pro ects LIABILITIES 1,827,911,1 A C tr cts Payable $ 231,896 16,533 Accounts an on a Deferred Compensation Accrued Payroll Accrued Compensated Absences Accrued Interest Payable Claims Payable Due to Other Funds Due to Other Funds (Deficit in Pooled Cash) Due to Other Governmental Entities Deposits Other Miscellaneous Payabies Payable from Restricted Assets Advances from Other Funds General Obligation Bonds Payable Revenue Bonds Payable Mortgages, Notes, Loan Pool Agreements and Acquisition Contracts Payable Interest Earnings Rebatable to U.S. Treasury Deferred Revenue Total Liabilities EQUITY AND OTHER CREDITS Investment In General Fixed Assets Contributed Capital Retained Earnings: Reserved for: Revenue Bond Requirements Unreserved Fund Balances: Reserved for: Prepaid Expenditures Encumbrances Debt Service Requirements Capital Projects Requirements Advances to Other Funds Noncurrent Notes Receivable Employee Retirement Special Programs Unreserved: Designated for Special Programs Designated for Debt Service Designated for Capital Projects Appropriations Undesignated Total Retained Earnings/ Fund Balances Total Equity and Other Credits See accompanying notes to Financial Statements. 1,015,736 85,068 3,235 299,114 4,100 4,139 804,396 2,159,278 21,216,358 755,952 42,994 _ 2,900,403 2,522,058 23,044,342 13,174 174,903 1,385,412 1,921,757 5,336,704 75,324 66,397 D a Ei 1,014,566 194,444 2,905,498 6,502,191 10,782,427 2,129,158 245,174 11,045,828 11,452,323 2,116,201 8,132,777 11,045,828 11,452,323 2,116,201 81132,777 $ 13,946,231 13,974,381 2,116,201 31,177,119 D a Ei Page 2 of 2 175,719,437 3,225,346 61,242,508 9,774,899 178,944,783 140,817,208 .14,365,822 178,944,783 95,141,655 249,525,756 30,052,923 189,340,359 95,141,655 13,174 34,624 Fiduciary 2,629,059 1,921,757 Totals Proprietary Fund Types Fund Type Account Groups (Memorandum Only) 66,397 106,974 175, 719,437 General General 543,553 1,014,566 426,071 Internal Trust and Fixed Long -Term 16, 382,105 13,191, 369 Enterprise Service Aoencv Assets Debt 1992 1991 1,388,770 885,918 182,442 4,533,543 3,034,975 10,119,112 10,119,112 8,563,406 951,507 479,170 2,446,413 1,920,437 2,657,968 2,657,968 2,300,890 34,451 67,899 102,350 66,542 4,724,649 4,724,649 2,477,543 521,328 21,822,774 25,149,370 1,929,585 1,756,572 3,686,157 3,426,538 302,349 773,522 17,256 58,134 83,629 78,633 35,888 35,888 54,359 7,092,094 7,092,094 7,579,695 75,324 3,038,998 4,264,038 725,000 725,000 810,000 94,788,501 4,199,822 98,988,323 100,739,974 826,437 7,772,893 2,004,034 10,603,364 9,985,359 1,083,295 1,083,295 1,242,878 798,946 633,604_ 108,708,548 15,687,101 10,395,576 9,586,824 172,844,852 173,101,763 95,141,655 95,141,655 85,962,008 79,574,700 4,590,923 84,165,623 81,785,539 18,682,681 531,112 19,213,793 17,767,152 42,559,827 9,243,787 51,803,614 48,917,096 175,719,437 3,225,346 61,242,508 9,774,899 178,944,783 140,817,208 .14,365,822 178,944,783 95,141,655 249,525,756 30,052,923 189,340,359 95,141,655 13,174 34,624 1,560,315 2,629,059 1,921,757 1,194,028 5,336,704 1,684,356 75,324 75,324 66,397 106,974 175, 719,437 154,400, 729 0 543,553 1,014,566 426,071 194,444 178,301 9,407,689 12,234,043 16, 382,105 13,191, 369 282,709,319 253,382,679 462,016,597 421,130,226 9,586,824 634,861,449 594,231,989 M M M � v CITY OF CLEARWATER FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES YEAR ENDED SEPTEMBER 30 1992 WITH COMPARATIVE TOTAL FIGURES FOR 1991 See accompanying notes to Financial Statements. Jul © u M � V General i Revenues: $ 33,669,832 2,071,227 Taxes Licenses; Permits, and Fees 9,509,632 Intergovernmental Revenues Charges for Services: Charges to Other Funds 4,492,640 1,108,563 Administrative Other Charges 1,537,300 Fines, Forfeitures, and Penalties _ 1,266,490 i Miscellaneous Revenues d 3,67— 5-- 5,684 5_ _ Total Revenues (s Expenditures: 6,1, 60501 r �, Current: General Government 27,659,598 Public Safety 1,405,623 €' Physical Environment 4,940,429 Transportation 310,375 Economic Environment 398,574 r Human Services 11,799,577 Culture and Recreation Capital outlay Debt Service: Principal Retirement i 56,731 Interest and Fiscal Charges 1, 53,174,409 Total Expenditures Excess (Deficiency) of Revenues 501,275 Over Expenditures V Other f=inancing Sources (Uses): Proceeds of Indebtedness 3.446,828 •, Operating Tranfers In (2,314,856) Operating Transfers Out _ 1,131.97 Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures 1,633,245 and Other Financing Uses 9,464,732 Fund Balances, Beginning of Year 14,995 Residual Equity Transfer In - ) Residual Equity Transfer Out $ 11,045,828 Fund Balances, End of Year See accompanying notes to Financial Statements. Jul © u M � V N[� I [ i� , , jjG �; LrT➢ J t Totals Capital (Memorandum Only) Special Debt Service Pro ectS 1992 1991 _Revenue 35,320,118 35,192,627 1,650,286 3,267,159' 3,185,432 1,195,932 369,715 16,754,240' 16,528,912 6,874,893 4,492,640 4,372,727 1,108,563 1,036,081 1,713,161 • 1,762,580 175,861 53,484 5,125,872• 3,220,— 3,693,697 -201 �— - �--- -- 92,201 423,199 67,781,753 65,298,576 13,590,669 — 6,977,514 6,621,711 376,013 27,843,799 26,296,742 184,200 1,434,840 1,411,154 28.217 4,946,295 5,664,293 5,866 1,093,545 954,037 783,170 435,082 348,284 36,508 12,127,429 10,964,134 327.852 7,945,437 10,056,845 8,467,933 2,111,408 807,404 1,411,120 807,404 586,270 � 3 5_ 27,539 �_ __.-- ---- -- 1,334,943 7,945,437 66,309,023 11 62,827,8 3,854,234 3,854'234 (_ 1,?42,742) 7,522,23 8) — 1,472,730 " ---- -- 2,470,765 9,736,435 — 464,447 464,447 338,702 414,541 1,976,711 2,860,854 B,C98,934 6024,572) (�_____ 17,491,509 (14,514,863) -- 3,653,415) ---- (56,299) _ 3'138'809 '3,315,348 -- - _ _ (3,238,874) � 76,71 — 1,976,7 1 733,969 ( 4 253,236) 4,611,539 5,786,113 6,497,561 1,372,329 12,386,013 29,258,041 24,473,200 6,034,967 24,898 2,300,000 9,903 (_ 7'349) ( 3 272) _ -1'14- 2,116,201 8,132,777 29 32,747 „_1,. 29 Y r 258_8.041 11� 452,3?3 � _ . N[� I [ i� , , jjG �; LrT➢ J t CITY OF CLEARWATER COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN' FUND BALANCE- BUDGET AND ACTUAL (NON -GAAP BUDGETARY BASIS) - GENERAL AND SPECIAL REVENUE FUND TYPES YEAR ENDED SEPTEMBER 30, 1902 REVENUES: Taxes Licensee, Permits, and Foss Intergovernmental Charges for Services: Administrative Charges to Other Funds Other Charges Fines, Forfeitures, and Penalties Miscellaneous Revenues Total Revenues EXPENDITURES: Current: City Commission Administration Legal City Clerk Administrative Services Personnel Non - Departmental Police Fire Public Works Parks and Recreation Library Planning and Development Downtown Redevelopment Board Community Redevelopment Agency Total Expenditures (Budgetary Basis) - Excess of Revenue Over Expenditures (Budgetary Basis) OTHER FINANCING SOURCES (USES): Operating Transfers In Operating Transfer$ Out Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses (Budgetary Basis) Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses for Non - Budgeted Funds General Fund' 4,488,230 4.492,640 Variance 1,002,889 1,108,563 Favorable Budget Actual (Unfavorable) S 33,937,588. 33,669,832 32,284 2,056,695 2,071,227 14,332 9,497,250 9,509,632 12,382 4,488,230 4.492,640 4,410 1,002,889 1,108,563 105,674 1,527,460 1,537,300 9,840 1,326,107 1,286,490 (39,617) 53,538,399 53,875,684 139,285 125,525 121,336 4,189 1,022,800 1,014,863 7,937 641,420 680,433 (39,013) 543,708 493,057 50,651 1,590,710 1,574,632 15,878 750,532 745,251 5,261 2,146,703 2,150,057 (3,354) 17,637,279 17,465,266 172,013 8,940,480 8,863,268 77,212 6,393,882 6,325,042 68,840 8,696,745 8,626,387 70,368 2,474,901 2,432,060 42,841 2,710,818 2,684,076 28,743 53,175,928 489,576 53,875,504 (139,105) 499,756 638,861 3,396,250 3,446,828 50,578 (2,312,317) (2.314,858) (2,541) 1,083,933 1,131,970 48,037 844,828 1,631,726 686,898 Encumbered Purchase Orders, Beginning of Year (173,384) (173,384) 174,903 Encumbered Purchase Orders, End of Year 174,903 Excess (Deficiency) of Revenues and Other Financing Sources Over 1,633,245 688,417 Expenditures and other Financing Uses (GAAP Basis) 944,028 Fund Balances, Beginning of Year 9,404,732 9,484,732 14,995 14,995 Residual Equity Transfer In (07,144) (67 144) Residual Equity Transfer Out Fund Balances, End of Year $ 10,409,580 11,045,828 630,288 • See Note 10. See accompanying notes to Financial Statement$. o G; L�J i' i1 a Totals Special Royenuo Fund Types* (Memorandum Only) Variance Variance - Favorable Favorable Buduat Actual (Unfavorable) Bud et Actual (Unfavorable) 1,627,878 1,650,286 22,410 35,265,444 35,320,118 64,674 1,243,700 1,195,932 (47,788) 3,300,595 3,267,159 (33,430) 6,829,634 5,928,475 (3,150) 15,428,884 15,4313,107 9,223 4,488,230 4,492,840 4,410 1,002,889 1,108,563 105,674 1,527,460 1,637,300 9,840 2,519,320 3,475,425 956,105 3,845,427 4,761,015 916,488 11,320,530 12,248,118 927,588 64,856,929 65,923,802 1,066,873 125,525 121,336 4,189 326,500 204,140 122,360 1,349,300 1,219,003 130,297 641,420 680,433 (39,013) 543,708 493,057 60,651 1,590,710 1,574,832 15,878 750,532 745,251 5,281 2,146,703 2,150,057 (3,354) 17, 637, 279 17, 4 65, 266 172,013 8,940,480 8,863,268 77,212 6,393,882 6,325,042 66,840 260,000 250,000 8,946,745 8,876,387 70,358 2,474,901 2,432,060 42,841 2,710,819 2,684,076 26,743 189,203 184,065 25,138 189,203 164.065 25,138 473,000 473,298 (298) 473,000 473,288. (298) 1,238,703 1,091,503 147 ,200 54,914,207 54,267,431 646,776 10,081,827 11,166,615 1,074,788 9,942,722 11,656,371 1,713,649 i 268,926 268,926 3,665,176 3,715,754 50,578 (6,358,039) (5,609,781) 748,258 (8,670,366) (7,924,639) 745,717 (0,088,113) (5,340,855) 748,258 (5,005,180) (4,208,885) 796,295 3,992,714 5,815,760 1,823,046 4,937,542 7,447,486 2,609,944 v f 36,371 36,371 36,371 38,371 (173,384) (173,384) 174,903 174,903 3,992,714 5,852,131 1,959,417 4,837,542 7,485,378 2,547,834 6,034,967 6,034,967 0 15,499,699 15,499,699 14,995 14,995 (434,775) (434,775) (501,919) (501,910) 10,027,681 11,452,323 1,424,642 20,437,241 22,498,161 2,060,910 V } Wit] CITY OF CLEARWATER FLORIDA ' L BINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS /FUND BALANCES - ALL PROPRIETARY FUND TYPE YEAR ENDED SEPTEMBER 30,19)2 WITH COMPARATIVE TOTAL mND SIMILAl , R TRUST TYPES Operating Revenues: Sales to Customers Service Charges to Customers User Charges to Customers Billings to Departments Rentals Contributions from Employees Contributions from Employer Earnings on Investments Interest on Loans State Tax on Insurance Premiums Intergovernmental Revenues Miscellaneous Revenues Operating Expenses: Personal Services Purchases for Resale Operating Materials and Supplies Benefit Payments Refunds Transportation Utility Service Solid Waste Dumping Charges Depreciation Interfund Administrative Charges Other Current Charges Operating Income (Loss) Nonoperating Revenues (Expenses): Earnings on Investments Interest Expense and Fiscal Charges Amortization of Bond Discount and Issue Costs Gain on Exchange of Assets Losses on Sale of Assets Losses from Writedowns and Replacements Of Fixed Assets Loss from Demolition of Sewer Facilities Due to E.P.A. Regulations Recycling Program Incentive Grant Insurance Recovery Florida Department of Transportation Grant Other Income (Loss) Before Operating Transfers Operating Transfers In Operating Transfers Out Net Income (Loss) Before Extraordinary item Extraordinary item - Loss on Early Extinguishment of Debt Net Income (Loss) Retained EamIngs/Pund Balance, Beginning of Year Residual Equity Transfer In (Out) Retained Earnings /Fund Balance, End of Year See accompanying notes to Financial Statement,, Proprietary Fund Types Enterprise Internal ---� — am k2 53,958,329 856,170 3,528,216 683,387 18,959,386 5 95 g 12,400,197 5,167,901 10,928,463 1,822,682 1,898,250 400,425 2,911,039 123,756 1,411,428 267,698 3,648,614 (14,366) 5,829,034 2,492,340 6,083,876 130,980 3,468,255 �---__ 9,554,499 _� 48,579,156 - ---- -_ 1g�- 6— 05- 10,426,946 -- -- —_ (r 1.0_ 00,895) 3,119,787 1,118,201 (5,250,173) (519,654) (159,404) (14,366) (8,955) (57,616 -- 2— 4 6,096,841 (1,606) 66T6—.841 56, 132,943 142,089 230,036 --- 83 -- 7'122 01,231,587) _ 49,664 9,195,359 ---- -- __ 774,328 (_2261567) 55,999 ('-- 3�� 297,909 (` 3,p` g�8) (57,616 -- 2— 4 6,096,841 ----'°' 1g 726 66T6—.841 56, 132,943 j 3 726 _ (9e7,276) 10,551.305 (1190.132) S 61242,508 9,774,899 ClwQft'u' Totals Fiduciary Fund Types (Memorandum Only) Pension Non- Expendable Trust Trust 1992 1991 4,237,988 3,780,712 (5,769,827) (5,128,066) (173,770) (113,507) (8,955) 241,672 (1,606) 217,824 142,089 (141,789) (3,000,462) 53,958,329 48,423,683 856,170 933,353 3,528,216 3,629,931 18,959,386 18,209,210 3,159,960 1,822 663,387 682,668 4,271,170 3,159,960 2,939,160 20,089,411 2,643 4,271,170 20,092,054 4,565,900 863,987 29,797 29,797 16,043,787 32,126 (2,976,646) 21,535,422 863,987 865,655 16,637 16,637 20(684,386) 22,583 2 8,321 ---- 30,904 -�_ 105,429 175'719,437 57.398 106,429,997 96,430,902 224,124,638 I 17,568,098 16,588,311 12,751,145 11,878,176 6,112,292 2,298,675 1,965,514 225,334 6,112,292 5,081,107 225,334 247,839 3,034,795 2,543,096 1,679,126 1,815,678 3,648,614 3,850,166 8,321,374 7,134,045 750,777 7,088,403 55,576 6,214,856 13,829,107 6,173,822 11,775,491 55,576 75,683,416 69,053,245 2,318,708 --- 1'822 30,746,581 27,377,657 4,237,988 3,780,712 (5,769,827) (5,128,066) (173,770) (113,507) (8,955) 241,672 (1,606) 217,824 142,089 (141,789) (3,000,462) 230,036 216,562 596,281 18,724 886,786 _ 446,460 21,318,708 1,822 (457,259) (2 ,865,589) 24,512,068 30_ 289,322 183,863 537,771 671,120 (3,212,133) (3,647,766) .,' 21,318,708 183,863 185,685 (2,674,362) 27,614,960 (2,976,646) 21,535,422 21,318,706 185,685 27,614,960 20(684,386) 154,400,729 3,039,661 224,124,638 205,793,633 175'719,437 ,_(1,777,408) 3,225,346 249,962,19 0 _ (2,353,381) 224,124,638 I a�� CITY OF CLEARWATER, FLORIDA G COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS YEAR ENDED SEPTEMBER 30 1992 WITH COMPARATIVE TOTAL FIGURES FOR 1991 Proprietary Fund Types Internal Enterprise Service Cash Flows from Operating Activities: $ 57,892 717 Cash Received from Customers 147,882 18,810,261 Cash Received from Other Funds Principal Collected on Loans and Advances Grant Revenue interest Earnings on Loans and Investments Cash Disbursed for Additional. Loans and Advances Cost of Property Acquired at Foreclosure Sale (21 122,875) (8,587,045) Cash Payments to Suppliers (12,232,523) (5,100,085) Cash Payments to Employees (9,784,336) (799,534) Cash Payments to Other Funds 2,386,260 (141,332) Other Revenues Net Cash Provided (Used) by Operating Activities 17,287,125 4,182,265 Cash Flows from Noncapital Financing Activities: 55,999 296,191 Operating Transfers In (2,633,189) (57,616) Operating Transfers Out (1,001,251) (38,400) Residual Equity Transfer 254,992 Grant Revenue 35,750 Insurance Proceeds Interest Paid 202,461 Loans from Other Funds, Net Net Cash Provided (Used) by Noncapital Financing Activities (3,120,988) 235,925 Cash Flows from Capital and Related Financing Activities: (2,865,467) (1,980,451) Principal Payments on Debt (4,579,134) (507,529) Interest Paid (13,568,160) (3,532,990) Acquisition of Fixed Assets 152,025 Proceeds from Sales of Assets 197,153 2,571,197 Proceeds from Issuance of Debt Cash Deposited with Escrow Agent for Bond Defeasance Payment or Bond Issue Costs 10,307 1,189,251 Payments on Advances from Other Funds Insurance Proceeds Received Capital Contributed by: 2,124,723 Other Funds Other Governmental Entities 70,615 Property Owners 698,981 Developers Net Cash Used for Capital and Related Financing Activities (17,910,982) 17,910,982) (2,108,497) -- Cash Flows from Investing Activities: (496,978) Purchase of Investment Securities 3,121,695 1,109,558 Interest on Investments 1,244,022 303,536 Loans to Other Funds, Net Cash Received on Receivables Proceeds from the Sales and Maturities of Investments (281320) (131,263) Interest Rebatable to the U.S. Treasury0 X19 1,281,831 Net Cash Provided in Investing Activities 95,574 3,591,524 Net Increase in Cash and Cash Equivalents 30,014,689 5,872,291 Cash and Cash Equivalents at Beginning of Year $ — 30,110,263 9,463,815 Cash and Cash Equivalents at End of Year -- ---- --- See accompanying notes to Financial Statements. (P F ".1 Paq it 2 Flduclary Fund Type Totals Non- (Memorandum Only) Expendable Trust 1992 1991 57,892,717 52,663,119 18,958,143 18,355,3 t O 53,012 53,012 97,705 50,863 50,863 15,836 15,836 35,461 (281,063) (281,063) (373,266) (42,930) (18,635) (29,728,555) (29,305,576) (17,332, 608) (16,403,064) (10,583,870) (10,923,558) 2,244,928 299,003 (179,987) 21,289,403 14,402,204 183,863 536,053 661,578 (2,690,805) (3,638,223) (1,039,651) (2,362,620) 254,992 329,433 35,750 196,281 (28,505) 202,461 (267,432) 183,863 (2,701,200) (5,109,488) (4,845,918) (4,519,377) (5,086,663) (6,705,074) (17,101,150) (20,530,112) 152,025 285,105 2,768,350 7,825,938 (7,242,785) (217,212) 1,199,558 (15,000) 400,000 2,124,723 3,328,260 0 1,794,054 70,615 129,343 698,981 467,485 (20,019,479) (24, 999,375) (496,978) (1,023,100) 4,231,253 6,018,586 1,547,558 (12,336,461) 52,845 16,500,766 (159,583) 175,355 5,122,250 9,387,991 3,876 3,690,974 (6,318,668) 47,064 35,934,044 42,252,712 50,940 39,625,018 35,934,044 r� - -- u u CITY OF CLEAR TEFL FLORIDA r .kx COMBINED STATEMENT OF CASH FLOWS - 4 ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS YEAR ENDED SEPTEMBER 30 1992 WITH COMPARATIVE TOTAL FIGURES FOR 1991 Proprietary Fund Types Internal Enterprise Service Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss) $ 10,426,946 (1,000,895) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Other Revenue from Nonoperating Section of Income Statement Depreciation 837.122 13,914 Provision for Uncollectibie Accounts 5'828'034 2'492,340 Amortization 207,250 Miscellaneous Expense 66,988 Change in Assets and Liabilities: Decrease (increase) in Accounts Receivable Decrease (Increase) in Mortgage Loans Receivable {578,281) {149'125) Decrease (Increase) In Rehabilitation Advances Receivable Decrease in Due from Others Decrease (Increase) in Amount Due from Other Governmental Entities Decrease (Increase) in Inventory 1,292,705 Decrease (Increase) in Prepaid Expenses {210,189) 18,508 Decrease (Increase) In Property Hold for Resale {13,379) (155,246) Decrease (Increase) in Loss Escrow Increase (Decrease) in Accounts and Contracts Payable (65'000) Decrease in Rehabilitation Advances Payable (623,352) 2,959,953 Increase (Decrease) In Amount Due to Other Governmental Entities Increase (Decrease) in Deposits Increase (Decrease) in Accrued Payroll (114,393) 167,674 67,816 Total Adjustments 6,860,179 5,183,160 Net Cash Provided (Used) by Operating Activities $ 17,287,125 4,182,265 M M I C V Fiduciary Fund Type Non - Expendable Trust 185,685 Pago 20 Totals (Memorandum Only) 1992 1991 9,611,736 8,859,794 851,036 445,103 8,321,374 7,134,045 207,250 107,853 6,147 73,135 149,059 (4,785) (728,406) (701,479) (375,729) (375,729) (324,677) 765 765 (1,000) (30,185) (30,185) 15,124 1,292,705 72,882 (191,681) (5,726) (168,625) (11,806) 45,000 45,000 (45,000) (65,000) 2,996 2,339,597 (1,053,247) (14,666) (14,666) (18,329) (114,393) (400,854) 235,490 185,247 (365,672) 11,677,667 5,542,410 (179,987) 21,289,403 14,402,204 CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Note (1) Summary of Significant Accounting Policies The accounting and reporting policies of the City of Clearwater, Florida, "the City ", relating to the funds included In the financial statements conform to generally accepted accounting principles of state and local governments. The following represent the more significant accounting and reporting policies of the City: Note (1A) Reporting Entity These financial statements incorporate all funds and account groups under the direct control of the City, as well as the Clearwater Downtown Development Board (DDB), and the Community Redevelopment Agency (CRA). Both the DDB and the CRA are separate entities created by the Clearwater City Commission under the provisions of Florida Statutes Chapters 70-635 and 163, respectively. Both entities exist to promote and encourage economic development in the downtown area. The DDB has separate Ad Valorem Taxing Authority and the CRA is funded with tax increment revenues as provided by the appropriate respective enabling legislation. Management believes that both entities meet the criteria established by NCGA Statement No 3, "Defining The Governmental Reporting Entity", and the subsequent NCGA interpretation No. 7 for inclusion in the City's Comprehensive Annual Financial Report as component units. According to Statement No. 3 and the subsequent NCGA Interpretation No. 7, the basic criteria to be used in deciding whether to include an entity is the exercise of oversight responsibility over the entity by the City's elected officials. Oversight responsibility includes, but is not limited to, the following: financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations, and accountability for fiscal matters. The fact that the DDB and the CRA both depend on City ordinances for their existence is strong evidence of oversight responsibility. Financial statements for both entities are included as separate special revenue funds in this report. Each of the following entities has.been considered for inclusion in the reporting entity. At this point in time, management does not believe that any of them evidence sufficient manifestations of oversight responsibility as outlined above to justify Inclusion, In the reporting entity. Management continues to monitor the circumstances surrounding each agency for significant changes which would be reason to include them in a future report. Clearwater Housing Authority (CHA) This Is a public housing authority created under Section 421.04 of the Florida Statutes. The agency receives the bulk of its funding from the Federal Department of Housing and Urban Development (HUD), and reports in accordance with policies and procedures prescribed by HUD, The City has no financial interdependency or accountability for fidi:;al matters. Even though the CHA Board members are appointed by the Mayor of Clearwater, this process does not involve the other elected City officials. Further, there is no evidence of ability to significantly influence T operations of the authority. Based on the above, management believes oversight responsibility is insufficient to justify inclusion in the reporting entity. PACT. Inc. As described in detail In Note 18, the City has an on going relationship with PACT, Inc., a corporation formed to finance, construct, and operate a performing arts center on a parcel of donated land in east Clearwater. PACT, Inc., selects its own Board of Directors, hires Its own management, makes its own operating decisions, and functions completely independent of the City. While there Is some evidence of financial Interdependency, there are virtually none of the other manifestations of oversight responsibility referenced above, and management continues to believe that PACT, Inc. should not be considered as a component unit of the City. Nevertheless, the relationship may be appropriately considered a joint venture as defined by NCGA Statement No. 7, 'Financial Reporting For Component Units Within The Governmental Reporting Entity% The CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 appropriate additional disclosures, as well as a complete discussion of the specific terms of the relationship, can be found in Note 18. Note (113) Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self - balancing accounts which comprise its assets, liabilities, fund equity, revenues and expenditures, or expenses as appropriate. The various funds are grouped by generic type and three broad fund categories in the financial statements. The types of funds maintained by the City are as follows: Governmental Funds The City accounts for those traditional governmental activities financed primarily from tax revenues through the use of various governmental funds. The basic distinctions of governmental funds are: Measurement Focus: Governmental funds are accounted for on a spending or "financial flow" measurement focus. Thus, only current assets and current liabilities are generally included on their balance sheets. The reported fund balance representing net current assets reflects "available spendable resources" at the balance sheet date. The operating statements of governmental funds report the changes in net current assets (available spendable resources) during a period of time, the increases consisting of revenues and other financing sources and the decreases consisting of expenditures and other financing uses. Accordingly, long -term debt and fixed assets are segregated from the accounts of these funds and shown separately in the General Long -Term Debt and the General Fixed Assets Account Groups. Advances To Other Funds: Long -term advances receivable from other funds are reported on the balance sheets of governmental funds even though they do not constitute current assets. In order to exclude such assets from consideration as "available spendable resources," an equivalent amount of fund balance is designated as reserved. Encumbrances_ Governmental funds employ the use of encumbrance accounting wherein purchase commitments are recorded as they are made in order to reserve that portion of the applicable appropriations. Encumbrances remaining outstanding at year -end do not constitute expenditures or liabilities. Fund balances are reserved in an amount equal to the total of outstanding encumbrances. As described In Note 1(G), the budget comparisons of certain funds are presented on the budgetary basis, which differs from generally accepted accounting principles. In these presentations, encumbrances are treated as expenditures in the year when the commitment Is made rather than the year of liquidation. Depreciation: There is no depreciation recorded for the use of fixed assets in governmental funds. Basis Of Accounting: Governmental Funds use the modified accrual basis of accounting, whereby expenditures, other than unmatured principal and Interest on general long -term debt, are recognized in the accounting period when the liability is Incurred, if measurable, and revenues and other resources are recognized in the accounting period when they become available and measurable. Revenues are considered to meet the availability test if they are collectible within the current period or soon enough thereafter for use in payment of liabilities of the current period. Certain grants are recognized prior to receipt of the monies whore appropriate under the terms a r CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 of the agreement with the grantor. General Fund accrued revenues consist primarily of utilities service taxes and franchise taxes. Reserves: Reserves have been established for open encumbrances at year -end, for debt service requirements, In accordance with applicable bond indenture covenants, for long -term Interfund advances, and in other cases to reflect legal restrictions which limit the City's spending discretion. The following Sara the City's governmental fund types: General Fund: The General Fund is the general operating fund of the City. All financial transactions and special assessments not properly accounted for in other funds are accounted for in the General Fund. Special Revenue Funds: Special Revenue Funds are used to account for revenues derived from specific sources. Such revenues are usually required by law or regulation to be accounted for separately and spent for particular purposes. Debt Service Funds: Debt Service Funds are used to account for the accumulation of resources for, and the payment of, interest and principal on the City's General Long -Term Debt, which is not the liability of Proprietary Funds. Capital Projects Funds: Capital Projects Funds are used to account for the acquisition and construction of capital facilities and other fixed assets. Proprietary Funds i Proprietary Funds are used to account for the City's organizations and activities which are similar to those found in the private sector. The basic distinctions of proprietary funds are: Basis of Accounting: Proprietary Funds use the full accrual basis of accounting. Revenues are recognized in the period in which they are earned, and expenses are recognized in the period In which the liabilities are incurred. Measurement Focus: Proprietary funds are accounted for on a cost of services or "capital maintenance' measurement focus. Therefore, all assets and liabilities, regardless of whether they are current or noncurrent, are presented on the balance sheet. Fund equity, consisting of net total assets, Is segregated Into contributed capital and retained earnings segments. The operating statements of these funds reflect revenues, expenses, and other sources and uses which account for changes in net total assets during the period. Valuation Of Fixed Assets: Property, plant and equipment owned by Proprietary Funds are stated at cost except for certain water and sanitary sewer lines of the Utility System which were donated to the City by contractors and subdivision developers. These lines are stated at their estimated cost to the contractors and subdivision developers which should approximate fair market value at the date of donation. Depreciation Is recorded over the estimated useful lives using the straight-line method. (See Note 5.) For all assets, depreciation expense Includes amortization of assets recorded under capital leases. When property is disposed, the related cost and accumulated depreciation are removed from the accounts with gains or losses on disposition being reflected as non - operating revenue or expense. Lr u A 1 r CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Reserves: Retained Earnings have been reserved for debt service requirements. Reserves have also been established to reflect legal restrictions which limit the City's spending discretion. The following are the City's proprietary fund types: Enterprise Funds: Enterprise Funds are used to finance and account for the acquisition, operation and maintenance of governmental facilities and services that are supported primarily by user charges. Internal Service Funds: Internal Service Funds are utilized to finance and account for service and commodities furnished by a designated department to other departments within the City or to other governments on a cost - reimbursement basis. Fiduciary Funds Trust and Agency Funds are utilized to account for resources that are managed in a trustee capacity or as an agent for other parties and /or other funds. These include Nonexpendabie Trust, Pension Trust, and Agency Funds. Nonexpendable Trust and Pension Trust Funds are accounted for substantially in the same manner as proprietary funds with a "capital maintenance" measurement focus and employment of the accrual basis of accounting. Agency Funds are not concerned with measurement of operating results, being essentially concerned with a custodial responsibility; assets and liabilities are measured on the modified accrual basis. Reserves for Retirements have been established for the payment of future benefits. Reserves for Retirements for defined contribution plans are equivalent to the net assets of the plan, and for defined benefit plans they are equivalent to the net assets of the plan, not to exceed the actuarial determined liability of such plans. Account Groups General Fixed Assets and General Long -Term Debt General Fixed Assets Account Group: This account group accounts for all fixed assets of the City's Governmental Funds. Assets purchased are recorded as expenditures in the General Fund, Special Revenue Funds and Capital Projects Funds and are capitalized at cost in the General Fixed Assets account group. Generally accepted accounting principles provide an option whether Infrastructure improvements such as streets, bridges and drainage systems are capitalized in the General Fixed Assets account group, or expended. The City has elected to capitalize these improvements. No Interest capitalization or depreciation is recorded on General Fixed Assets. Contributed assets are stated at estimated fair market value on the date contributed, or In the case of assets contributed by developers, at estimated cost to the developer which should approximate fair market value. General Long -Term Debt Account Group: This account group accounts for Long Term Debt and Compensated Absences which are liabilities of Governmental Funds but not payable from currently available expendable financial resources. Note (IC) Pooled Cash and Investments The City utilizes a consolidated cash pool to account for cash and Investments of all City funds other than those which are required by ordinance to be physically segregated. The consolidated cash pool concept allows each participating fund to benefit from the economies of scale and improved yield which are inherent to a larger Investment pool. Formal accounting records dotail the individual equities of the participating funds. The cash pod utilizes a single checking account for all City receipts and disbursements. I Cyry oY U ti . CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 III. Employee Retirement Deposits and Investments: Cash on Deposit with Custodian Money Market Accounts Guaranteed Investment Contracts Domestic Corporate Equity Securities U.S. Treasury Bills Domestic Corporate Bonds Managed Mutual Funds U.S. Federal Agencies ICMA Retirement Trust Section 457 Investment Pool PEBSCO Retirement Investment Pool Total Employee Retirement Investments Total Deposits and investments, All Funds Included in the U.S. Treasury Securities held by the cash pool is $6,892,265 which is restricted for debt service even though physical segregation In not required. The depository bank has contractually agreed to notify the City Attorney should the total U.S. Treasury holdings fall below this amount, so appropriate remedial action can be taken. This amount relates to the debt service reserve requirements for the following debt issues: • Public Service Tax and Bridge Revenue Bonds, Series 1985 • Community Redevelopment Agency of the City of Clearwater Tax Increment Revenue Bonds, Series 1987 Water and Sewer Revenue Bonds, Series 1984, 1988, 1988A and 19888 • Gas System Revenue Bonds, Series 1991 Parking System Revenue Bonds, Series 1983 Note (ID) Inventories Inventories of proprietary funds are stated at cost and valued on the first -in first -out (FIFO) basis. In governmental funds, inventory items such as materials and supplies, are accounted for under the purchases method, which provides that expenditures are recognized when the inventory hem is purchased. Note (1E) General Fund Administrative Charges The General Fund charges Proprietary Funds for their proportionate share of the costs of general government operations. The amounts charged to these Proprietary Funds are based on relative net expenditures (after deducting all interfund transactions). Note (IF) Accrued Vacation And Sick Leave Full -time permanent employees earn a paid vacation period of two calendar weeks after one year of service, increasing on a graduated scale to a maximum vacation period of four calendar weeks per year after 18 years of service. Employees may accumulate unused vacation not exceeding one current year of vacation credit. Sick leave is accumulated at approximately 10 hours per month. Upon retirement from City service an employee may, under certain circumstances, be paid one -half of his accumulated unused sick leave. Pursuant to the requirements of Financial Accounting Standards Board Statement No. 43, "Accounting for Compensated Absences," it is the Clty's policy in its Proprietary Funds to reflect on an accrual basis the amounts of earned but unused vacation leave and that portion of earned but unused sick leave estimated to be payable upon retirement. Investment Carrying Market Deposit Credit Credit Value Value Risk Category Risk Category 899,351 899,351 1 1,002,819 1,002,819 1 46.750,000 46,840,999 N/A 74,804,004 97,797,574 26,368,483 27,122,923 1 394,249 403,934 2 18,860,440 19,218,383 N/A 1,050,938 1,081,468 2 9,263,162 9,263,182 N/A $55,930 855.930 N/A 180.249.396 204.486.563 $286 e^2�1.2v9 415 719 Included in the U.S. Treasury Securities held by the cash pool is $6,892,265 which is restricted for debt service even though physical segregation In not required. The depository bank has contractually agreed to notify the City Attorney should the total U.S. Treasury holdings fall below this amount, so appropriate remedial action can be taken. This amount relates to the debt service reserve requirements for the following debt issues: • Public Service Tax and Bridge Revenue Bonds, Series 1985 • Community Redevelopment Agency of the City of Clearwater Tax Increment Revenue Bonds, Series 1987 Water and Sewer Revenue Bonds, Series 1984, 1988, 1988A and 19888 • Gas System Revenue Bonds, Series 1991 Parking System Revenue Bonds, Series 1983 Note (ID) Inventories Inventories of proprietary funds are stated at cost and valued on the first -in first -out (FIFO) basis. In governmental funds, inventory items such as materials and supplies, are accounted for under the purchases method, which provides that expenditures are recognized when the inventory hem is purchased. Note (1E) General Fund Administrative Charges The General Fund charges Proprietary Funds for their proportionate share of the costs of general government operations. The amounts charged to these Proprietary Funds are based on relative net expenditures (after deducting all interfund transactions). Note (IF) Accrued Vacation And Sick Leave Full -time permanent employees earn a paid vacation period of two calendar weeks after one year of service, increasing on a graduated scale to a maximum vacation period of four calendar weeks per year after 18 years of service. Employees may accumulate unused vacation not exceeding one current year of vacation credit. Sick leave is accumulated at approximately 10 hours per month. Upon retirement from City service an employee may, under certain circumstances, be paid one -half of his accumulated unused sick leave. Pursuant to the requirements of Financial Accounting Standards Board Statement No. 43, "Accounting for Compensated Absences," it is the Clty's policy in its Proprietary Funds to reflect on an accrual basis the amounts of earned but unused vacation leave and that portion of earned but unused sick leave estimated to be payable upon retirement. CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 In accordance with Statement No. 4 of the National Council on Governmental Accounting, accumulated unpaid vacation and sick pay are subject to accrual in Govemmentai Funds to the extent that such amounts would normally be liquidated with expendable available resources on hand at the close of the fiscal year. The remaining portion of the liability is to be reflected ip the General Long -Term Debt Account Group. With respect to the current fiscal year, management has determined that no material amounts of accumulated unpaid vacation and sick leave at the close of the year will be liquidated with expendable available resources; therefore the entire liability for such leave pertaining to the Governmental Funds Is reflected in the General Long -Term Debt Account Group. Note (1G) Budgets And Budgetary Accounting Annual budgets are legally adopted for the City's General Fund and for the Special Development Fund, the Clearwater Downtown Development Board Fund and the Community Redevelopment Agency Fund. The City of Clearwater observed the following procedures In establishing the budgetary data for the General Fund and Special Development Fund, as reflected in the financial statements: On July 1, 1991, the City Manager submitted to the Clearwater City Commission proposed budgets for the fiscal year commencing October 1, 1991 and ending September 30, 1992. Public Hearings were held on August 15, 1991 and September 5, 1991 at the Clearwater Commission Chambers to obtain citizen comments. On September 5, 1991 official budgets were legally adopted by Ordinance No. 5116 -91. Subsequent quarterly budget amendments were adopted on March 5, 1992 (Ordinance 5179 -92) and July 2, 1992 (Ordinance 5248 -92). The final amended budget was adopted October 1, 1992, (Ordinance 5278 -92). The budget for the Special Development Fund Is adopted on a basis consistent with GAAP, and appropriations lapse at year -end. Appropriations for open encumbered purchase orders at year -end in the General Fund do not lapse, but rather continue until liquidated or otherwise canceled by City Commission action. On the General Fund budgetary comparison statements, actual expenditures have been adjusted to Include end of year encumbrances and to exclude beginning of year encumbrances to provide for a meaningful comparison. Except for the treatment of encumbrances and certain transactions relating to interfund loans, the General Fund Budget is adopted on a basis consistent with GAAP, and all non - encumbered appropriations lapse at year -end. The level of budgetary control established by the legislative body, that is the level on which expenditures may not legally exceed appropriations, Is the Individual fund. In accordance with provisions of Ordinance 5025 -90 and with Section 41.08(d) of the Gearwater Code, the City Manager may transfer part or all of any unencumbered appropriation balance among programs within an operating fund, provided such action does not result In the discontinuance of a program. Such transfers must be Included in the next budget review presented to the City Commission. Upon detailed written request by the City Manager, the City Commission may by ordinance transfer part or all of any unencumbered appropriation balance from one fund to another. As established by administrative policy, department directors may transfer money from one operating code to another within a division without a formal written amendment, with the exception of central service charges and employee expense codes. Formal requests for budget amendments from department directors are required for transfers in personal service codes, capital expenditures, transfers and reserves. Thus, certain object classifications within departmental and /or divisional budget appropriations are subject to administratively imposed controls In addition to the legal controls Imposed by City Commission action described above. CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL_ STATEMENTS SEPTEMBER 30, 1992 During fiscal year 1988 -89, the City Commission authorized the establishment of a special health insurance stabilization fund to guard against future substantial increases in health care costs. The current accumulated balance in this fund is $2,089,766, which represents $558,102 refunded from insurance carriers and $1,531,664 contributed by departmental billings during the current and Immediately preceding fiscal years In excess of Insurance premium expense actually Incurred during those two years. This fund is a component of the unreserved retained earnings balance of the Central Insurance Fund at September 30, 1992. The City is not currently self- insured with respect to major medical coverage. Note (11) Statements of Cash Flows For purposes of the statements of cash flows, Investments with original maturities of three months or less are considered to meet the definition of rash equivalents. The majority of the investments in which the City's proprietary and nonexpendable trust funds have an equity are held by the City's consolidated pool of cash and Investments. Since fund equities in this cash management pool have the general characteristics of demand deposits In that additional funds may be deposited at any time and also funds may be withdrawn at any time without prior notice or penalty, each fund's equity account is considered a cash equivalent regardless of the maturities of Investments held by the pool. Those funds which have deficit (overdraft) positions with the pool treat such deficits as interfund payables to the City's Capital Improvement Fund as explained in Note 1(C); for purposes of the statements of cash flows, such interfund payables, which are distinguished from other Interfund payables through separate category presentation In the relevant balance sheets, are included as cash equivalents. Note (1J) Capitalization of Interest In compliance with the requirements of Financial Accounting Standards Board Statement No. 62, it is the policy of the City to capitalize all interest costs of tax exempt borrowings, the proceeds of which are externally restricted to the financing of the acquisition of specified qualifying assets, less any Interest earned on the temporary investment of the proceeds of such borrowings until the specified qualifying assets acquired with the borrowings are ready for their Intended use. This policy is applicable to the proprietary funds; it is not applied to general fixed assets. During the fiscal year, $7,674,859 of Interest cost was Incurred. interest capitalized, net of earnings on related investments of $1,051,528, was $853,504. Note (11K) Comparative Data Wherever possible, the accompanying financial statements include comparative total data for the prior year in order to provide a better understanding of changes in the City's overall financial position and results of operation. Note (1L) Combined Financial Information The total columns included In the combined financial statements which are captioned "Memorandum Only" represent a summation of the amounts presented in the columns by fund type and account group. Such totals do not eliminate interfund transactions, and are Included for Informational purposes only. They do not fairly present financial position, results of operations or cash flows for the governmental unit as a whole in conformance with generally accepted accounting principles. Db' VU � � `� i CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Note (2) Long -Term Debt Note (2A) Summary of Transactions In Long -Term Debt nerai Lona Term Debt Account Group Debt Payable at October 1, 1991 New Debt Issued: Lease Purchase Contracts for Equipment Acquisition Net Change in Accrued Compensated Absences Debt Retired Debt Payable at September 30, 1992 Proprietary Funds Debt Payable at October 1, 1991 New Debt Issued: Lease Purchase Contracts for Equipment Acquisition Increase in Book Value of Capital Appreciation Bonds Due to Interest Accretion Debt Retired Unamortized Discount and Issue Costs Debt Payable at September 30, 1992 Notes, Mortgages, General Loan Pool Accrued Obligation Revenue Agreements Compensated Bon ens & Contracts Absences Total $810,000 $4,450,388 $2,149,604 $2,300,890 $ 9,710,882 325,268 325,268 357,078 357,078 (85,000 (250,5 (470.83 (806,40 $725.00 14$ 99,822 2 0-$ 24,034 2 657 968 $ 9.586.824 $99,966,171 $ 7,895,373 $107,861,544 2,783,566 2,783,566 1,390,910 (2,808,434) (2,036,783) 1,390,910 (4,845,217) (1,312,21.9) (42.82 1 355 044 ,759 � 105.835- 7236429 ,429 8�,599�33� i Outstanding debt In the above schedule is not adjusted for amounts accumulated In sinking funds for term maturities of revenue bonds (par value $239,260 for General Long -Term Debt Account Group and $3,740,740 for Proprietary Funds). CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Note (213) Summary of Debt Service Requirements (Ail Outstanding Indebtedness as of September 30, 1992, Including Interest Payments of $123,208,554) Note (21)) Long -Term Debt, General Government Accrued Corno n,a+cr) nti�,. _ Long -term portion of accrued vacation and sick pay for governmental funds, as required by NCGA Statement No. 4. 2 657 968 Serial Bonds Pavabl General Obligation Bonds, 1978 Series, Interest and principal payable from ad valorem taxes, maturing serially from January 1, 1992 to January 1, 1999, Interest rates 5.45° to 5.80 °b 725,000 Notes, General Mortgages, Year Ending Sept. 30 Obligation Loan Pool Revenue Agreements & -.Bonds Bonds —Q!2ntracts Total 1993 $128,610 1994 123,615 $ 10,274 665 $ 3.248,400 $ 13,651,675 1995 123,457 1996 9,737,496 2,947,921 9,284,012 2,559,013 12,809,032 11 8,182 118,114 1997 117,580 9,298,575 1.943,700 9,302,699 ' 11,360,389 Thereafter 27- �5 1,436,918 172,252.506 180.737 10,857,197 $881,571 220 149 953 JILP 16 689 172.703 438 233 348213 Notes (2C) Obligations Under Lease Purchase Agreements Future minimum lease payments under lease purchase agreements are as follows: Year Ending Seot 30 Amount 1993 1994 $2,163,951 1995 1,875,709 1996 1,491,337 ' 1997 890,530 387.466 Deduction of the Amount of Imputed 6,808,993 Interest Necessary to Reduce Net Minimum Lease Payments to Present Value 7&.80 . 6 040 185 Obligations under capital leases are Included as a component of the balance under the caption Mo --n�. teS• Loan Pool Aar amorog anrt n, r ltl n Contracrs Pavabla on the City s Combined Balance Sheet. Note (21)) Long -Term Debt, General Government Accrued Corno n,a+cr) nti�,. _ Long -term portion of accrued vacation and sick pay for governmental funds, as required by NCGA Statement No. 4. 2 657 968 Serial Bonds Pavabl General Obligation Bonds, 1978 Series, Interest and principal payable from ad valorem taxes, maturing serially from January 1, 1992 to January 1, 1999, Interest rates 5.45° to 5.80 °b 725,000 CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Public Service Tax and Bridge Revenue Bonds, Series 1985, maturing serially from December 1, 1992 to December 1, 1998, with Interest rates varying from 7,125% to 8.75 %. The amount shown here represents 33.065% of the serial portion of the total Issue. The amount representing 33.065% of the term portion of the total Issue Is Included in the balance of term bonds payable within the general long -term debt account group. The remainder of this Issue, both term and serial portions, is reflected In the Toll Causeway and Bridge Fund (40.541%) and In the Parking System Fund (26.394° %). The bonds have serial maturities ranging from $440,000 at 7.375% due December 31, 1992 to $700,000 at 8.75°% due December 1, 1998, and term bonds totaling $1,740,000 at 9.125°% due December 1, 2005. Funds are being held in a sinking fund as described in Note (2G) to assist in the 2005 maturity. 1,294,492 Community Redevelopment Agency of the City of Clearwater Tax Increment and Lease Revenue Bonds, Series 1986, maturing serially from October 1, 1992 to October 1, 2000, with Interest rates varying from 6.75°% to 8.40 %. Interest and principal payable from tax Increment revenues and from lease revenues. 440,000 Community Redevelopment Agency of the City of Clearwater Tax Increment Revenue Bonds, Series 1987, maturing serially from September 1, 1993 to September 1, 1997, with interest rates varying from 7.00°% to 8.30 %. Interest and principal payable from tax increment revenues. 700,000 Total Serial Bonds Payable 3,159.492 Term Bonds Payable Public Service Tax and Bridge Revenue Bonds, Series 1985, maturing December 1, 2005 with interest at 9.125 %. The amount shown here represents 33.065°% of the term portion of total Issue. The remainder of the issue is reflected In the Toll Causeway and Bridge Fund (40.541 %) and In the Parking System Fund (26.394 %). The bonds have serial maturities ranging from $440,000 at 7.375% due December 31, 1992 to $700,000 at 8.75% due December 1, 1998, and term bonds totaling $1,740,000 at 9.125°% due December 1, 2005. Funds are being held in a sinking fund as described in Note (2G) to assist in the 2005 maturity. 575,330 Community Redevelopment Agency of the City of Gearwater Tax Increment and Lease Revenue Bonds, Series 1986, with Interest and principal payable from Tax Increment ' Revenues and Lease Revenues, maturing October 1, 2006, with interest at 8.50 %. 1,190,000 Total Term Bonds Payable 1,765.330 Notes, Mortaaaes C� -ontractsand Loan Pool Agreement Payable Contractual obligation arising from lease agreement with Pier Pavilion, Inc., lessee, dated July 3, 1980, providing for reimbursement by the City to the lessee for certain structural Improvements to the Pier Pavilion up to a limit of $50,000; obligation is being satisfied by allowing a credit of $4,167 each year against rentals owed to the City by lessee under the terms of the lease. 8,328 II pf �t , Ltj� � �Ul L�� � U�i e_1 CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Pursuant' o certain Master Lease Agreements, the City has entered into Lease Purchase Agreements for the purchase of automotive and other types of equipment for the use by the operating departments of the General Fund. These agreements provide for 20 quarterly payments ranging in amount from $671 to $11,102. The cost of the equipment at the inception of the leases was $2,024,404 with interest Imputed thereon of $334,285, the effective rates ranging from 6.15% to 8.5997 %. 878,831 Pool Loan Agreement with First Florida Governmental Financing Commission authorized by the City Commission on July 2, 1987 through adoption of Ordinance 4437 -87; provides for repayment of principal In annual Installments ranging from $40,000 to $55,000 from July 1, 1992 to July 1, 1997; Interest on installments ranges from 5.75% to 6.70% and is payable semiannually; City is further obligated to pay certain additional payments, including its proportionate share of the fees of the Commission as well as those of the Trustee, Registrar and Paying Agent created pursuant to the terms of the Revenue Bonds issued by the Commission to provide the funds for making the pool loans, and in addition all fees and expenses of the Commission or Trustee that relate to this Loan Agreement; collateralized by non -ad valorem revenues or other legally available funds of the City. Loan was obtained to finance the purchase of an advanced multi - purpose fire fighting vehicle. 245,000 Pool Loan Agreement with City of Gulf Breeze Florida Local Government Loan Program authorized by the City Commission on December 15, 1988, through adoption of Ordinance 4728 -88; provides for repayment of principal in 120 monthly payments of $8,167 from February 1, 1989 to January 1, 1999; interest is payable monthly at the floating rate determined by the Loan Program Financial Advisor sufficient to pay the proportionate share of program Interest, costs and expenses (8.7% at September 30, 1992); the Interest rate shall not exceed twenty -five percent (25%) per annum, exclusive of amounts charged for costs and expenses of the loan program; collateralized by proceeds of the local government half -cent sales tax. Loan was obtained for the financing (or refinancing) of the cost of acquisition of the Vogel Property tract for park 612,500 purposes. Pool Loan Agreement with City of Gulf Breeze Florida Local Government Loan Program authorized by the City Commission on December 15, 1988, through adoption of Ordinance 4729 -88; provides for repayment of principal In 120 monthly payments of $3,458 from February 1, 1989 to January 1, 1999; Interest is payable monthly at the floating rate determined by the Loan Program Financial Advisor sufficient to pay the proportionate share of program interest, costs and expenses (8.7% at September 30, 1992); the Interest rate shall not exceed twenty-five percent (2596) per annum, exclusive of amounts charged for costs and expenses of the loan program; collateralized by proceeds of the local government half -cent sales tax. Loan was obtained for the financing (or refinancing) of the cost of acquisition of environmentally sensitive Coopers 259.375 Point tract for park purposes. Total Notes, Mortgages, Contracts and Loan Pool Agreements Payable 2,004,034 Total General Long -Term Debt Payable f. 'a 9,586,824 CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Note (2E) Long -Term Debt, Proprietary Funds Water and Sewer Utility Fpnd Water and Sewer Revenue Bonds, Series 1984; 8.25 - 9.00 %. Current Interest Bonds with serial maturities due in annual principal Installments ranging from $770,000 to $2,265,000 from December 1, 1992 to December 1, 1994; interest Is payable semiannually, collateralized by net revenues of the Water and Water Pollution Control System. 5,125,000 Water and Sewer Revenue Bonds, Series 1988; 6.50 - 7.60 %. Current Interest Bonds with Serial maturities due In annual principal Installments ranging from $460,000 to $2,985,000 on December 1st In the years 2005, 2006, 2008, and 2010 through 2013; Capital Appreciation Bonds with an approximate yield to maturity ranging from 7.45 - 7.75% and having serial maturities due in annual installments (original principal amount plus Interest earned to date of maturity) ranging from $625,000 to $6,840,000 from December 1, 2004 to December 1, 2018; Interest is payable semiannually on Current interest Bonds and at maturity (or prior redemption date) on Capital Appreciation Bonds; net of unamortized discount of $936,356 and in the case of the Capital Appreciation Bonds, unearned interest included In the maturity amount outstanding at September 30, 1992 of $60,569,426; collateralized by net revenues of the Water and Water Pollution Control System. 30,284,218 Water and Sewer Revenue Bonds, Series 1988A; 7.00 - 7.30 %. Current Interest Bonds with serial maturities due in annual principal Installments ranging from $2,450,000 to $5,310,000 from December 1, 1999 to December 1, 2004; interest is payable semiannually, net of unamortized discount and Issue costs of $20,936; collateralized by net revenues of the Water and Water Pollution Control System. 26,614,064 Water and Sewer Revenue Bonds, Series 19886; 6.40 - 6.75 %. Current Interest Bonds with serial maturities due in annual principal installments ranging from $695,000 to $3,985,000 from December 1, 1992 to December 1, 1999; 7% Term Current Interest Bonds in the principal amount of $2,740,000 maturing on December 1, 2018; Capital Appreciation Bonds with an approximate yield to maturity ranging from 6.85 - 7.10% and having serial maturities due in annual Installments (original principal amount plus interest earned to date of maturity) ranging from $220,000 to $290,000 from December 1, 2000 to December 1, 2009; interest is payable semiannually on Current interest Bonds and at maturity (or prior redemption date) on Capital Appreciation Bonds; net of unamortized discount of $54,149 and In the case of the Capital Appreciation Bonds, unearned interest Included in the maturity amount outstanding at September 30, 1992 of $1,434,105; collateralized by net revenues of the Water and Water Pollution Control System. 23,331,745 Pursuant to a Master Lease Agreement, the City has entered Into a Lease Purchase Agreement for the purchase of automotive equipment for use by an operating division of the Water and Sewer Utility Fund (also finances the acquisition of equipment unrelated to the Water and Sewer Utility Fund), providing for 20 quarterly payments of $1,040 Commencing December 31, 1989; the cost of the equipment at the Inception of the Lease Agreement was $17,346 with Interest Imputed thereon of $3,458, an effective rate of 7.7122 %. 28,038 CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Interest earnings on the investment of unspent proceeds of the Water and Sewer Revenue Bonds, Series 1988A and 1988B (Including related reserve account) estimated to be rebatable to the United States Treasury. 1.083.295 86,466,360 Less Current Portion of Long -Term Debt 2.587.420 Long Term Debt, Excluding Current Portion 83.878.940 Cash has been restricted and reserves established in the Water and Sewer Revenue Bonds Debt Service Fund pursuant to the ordinances authorizing the four outstanding series of Water and Sewer Revenue Bonds. Amounts restricted are in compliance with the ordinances. Gas Utility Fund Gas System Revenue Bonds, Series 1991, 5.6% to 6.5% Serial Bonds due in annual principal installments ranging from $150,000 to $380,000 from September 1, 1995 to September 1, 2004; 6.5% Term Bonds in the principal amount of $2,325,000 maturing on September 1, 2009 and 6.5% Term Bonds in the principal amount of $2,455,000 maturing on September 1, 2013; Interest is payable semiannually; net of unamortized discount of $185,477, collateralized by net revenues of the Gas Division. 7,494,523 Obligations under lease purchase agreement, relating to purchase of vehicles and equipment, original principal amount of $187,219, payable over 5 years with an effective rate of 5.1 to 5.525 %, quarterly payments of $10,583. 176.499 7,671,022 Less Current Portion of Long -Term Debt 33.899 Long -Term Debt, Excluding Current Portion 7.637.123 Cash has been restricted and reserves established In the Gas System Revenue Bonds Debt Service Fund pursuant to the ordinance authorizing the 5.6 - 6.5% Gas System Revenue Bonds. Amounts restricted are in compliance with the ordinance. Solid Waste Utility Fund Pool Loan Agreement with First Florida Governmental Financing Commission authorized by the City Commission on July 2, 1987 through adoption of Ordinance 4437 -87; provides for repayment of principal In annual installments ranging from $60,000 to $85,000 from July 1, 1992 to July 1, 1997; Interest on installments ranges from 5.75% to 6.70% and is payable semiannually; City is further obligated to pay certain additional payments, including its proportionate share of the fees of the Commission as well as those of the Trustee and the Registrar and Paying Agent created pursuant to the terms of the Revenue Bonds issued by the Commission to provide the funds for making the pool loans, and In addition all fees and expenses of the Commission or Trustee that relate to this Loan Agreement; collateralized by non-ad valorem revenues or other legally available funds of the City. Loan was obtained to finance the construction of a facility to be used by the Solid Waste Division (also finances Improvements to real property and acquisition of equipment unrelated to the Utility System); net of unamortized discount and issue costs of $4,409. 870,591 LE CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Capital Improvement Revenue Bonds, Series 1984, 9.50 °h, due In equal principal Installments of $64,000 each on November 16 in each of the years 1992 through 1994; Interest is payable quarterly; net of unamortized Issue costs of $661; collateralized by an Irrevocable lien upon guaranteed entitlement portion of state revenue sharing trust funds, proceeds of local government half -cent sales tax and all Investment Income derived from investment of funds held under the authorizing ordinance; in addition, the bonds are collateralized by a subordinate lien on public service tax revenues. 191,339 Lease Purchase Agreements for the purchase of automotive and data processing equipment for the use by the operating division of the Solid Waste Utility Fund. Agreements provide for 20 quarterly payments of $4,622. The cost of the equipment at the inception of lease was $247,541 with Interest Imputed thereon of $14,437, with effective rates ranging from 5.1% to 7.32 %. Less Current Portion of Long -Term Debt Long -Term Debt, Excluding Current Portion Certain assets on deposit with an escrow agent pursuant to the requirement to establish and maintain a Debt Service Account contained In the Loan Pool Agreement with the First Florida Governmental Financing Commission have been classified as restricted assets and a reserve has been established in the Solid Waste Utility Fund. Amounts restricted are in compliance with the ordinance and the Loan Pool Agreement. Toll Causeway and Bridge 40.541% of the Public Service Tax and Bridge Revenue Bonds, Series 1985. Bridge Revenues are pledged to collateralize this portion of the total bond issue. Liability shown Is net of unamortized discount and issue costs (Bridge Fund share only) totaling $70,924. Less Current Portion of Long Term Debt Long -Term Debt, Excluding Current Portion Cash has been restricted and reserves established pursuant to the ordinance authorizing the Public Service Tax and Bridge Revenue Bonds, Series 1985, Amounts restricted are in compliance with the ordinance. Yacht Basin and Marina 5% Uncollaterailzed loan payable to the General Fund; $15,000 of the advance is scheduled for repayment during the following fiscal year. Pursuant to a Master Lease Agreement, the City has entered Into a Lease Purchase Agreement for the purchase of computer equipment for use by the operating division of the Yacht Basin and Marina Fund, providing for 20 quarterly payments of $1,401, commencing on June 1, 1990; the cost of the equipment at the Inception of the Lease Agreement was $23,555 with interest Imputed thereon of $4,456, an effective rate of 7.345 %. �r�Vfli� A 21.200 583,130 136.3 446.746 2,221,667 166.218 2.055.449 75,324 12.689 CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Less Current Portion of Long -Term Debt 3.546 Long -Term Debt, Excluding Current Portion 6,534 TOTAL PROPRIETARY FUNDS - LONG-TERM DEBT, EXCLUDING CURRENT PORTION 101.849.298 TOTAL LONG -TERM DEBT, ALL FUNDS EXCLUDING CURRENT PORTION FOR PROPRIETARY FUNDS $111.436.122 The official statements and commission resolutions authorizing the issuance of the revenue bonds described above contain certain restrictive covenants. The City has covenanted that, on a monthly basis, It will deposit specified amounts derived from specific revenue sources into accounts and funds established by the resolutions. The deposits into these accounts and funds are used to repay principal and interest coming due on the bonds and to provide sinking funds established for the purpose of retiring term bonds due in future years. Certain of the covenants also require maintenance of specified coverage ratios. The City is In compliance with bond covenants. Note (2F) Advance Refunding of Bonds In prior fiscal years, the City entered into various advance refunding transactions related to certain of its bonded debt. A portion of the proceeds of the refunding bond issues'was placed in trust and used to purchase securities of the United States Government and related agencies at various Interest rates and maturities sufficient to meet all debt service requirements of the refunded debt, of which $75,995,447 was outstanding at September 30, 1992, all of which relate to enterprise funds. These assets are administered by trustees and are restricted to use for retirement of the refunded debt. The liability for the refunded bonds and the related securities and escrow accounts are not Included In the accompanying financial statements as the City defeased its obligation for payment of the refunded bonded debt upon completion of the refunding transactions. Bond issues which have been refunded and are payable from escrow accounts are: Amount Outstanding at September 30, 1992 Gas System Revenue Bonds, Series 1983 $ 6,510,000 Utility Revenue Certificates 12,395,000 Special Obligation Bonds, Series 1978 3,440,000 Utility Revenue Bonds, Series 1978 24,790,000\ Water and Sewer Revenue Bonds, Series 1987 17,000,000 Water and Sewer Revenue Bonds, Series 1984 (partial refunding) 4,840,447 Utilities Tax and Bridge Revenue Bonds, Series 1977 4,640,000 Utilities Tax Bonds, Series 1977 2.380.000 $75,985,447 [i[aG�GV CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Note (2G) Sinking Fund for Term Bond Maturities �ablic Service Tax And Bridge Revenue Bonds On August 27, 1985, Sinking funds for the 1977 Utilities Tax and Bridge Revenue Bonds and for the 1977 Utilities Tax Bonds were liquidated with the proceeds being placed into escrow as part of an advance refunding of both of these Issues. These amounts, plus $4,149,699 from the 1985 Public Service Tax and Bridge Revenue Bonds were used to purchase United States Government Securities which will mature in sufficient amounts to make all required principal and Interest payments on both 1977 issues. Under agreements dated November 1, 1977 and amended March 14, 1978, the City exercised an option obligating it to purchase securities from Barnett Bank through December 1, 1987 for both of the original 1977 sinking funds. As part of the refunding plan, all securities purchased subsequent to the refunding date became part of the sinking fund for the term maturity of the 1985 bonds. As of September 30, 1992, securities totaling $1,091,405 (at amortized cost, market value $1,198,925) were being held by Barnett Bank for this purpose. All securities will mature May 5, 2005 and will be applied toward the final payment on the 1985 bonds due on December 1, 2005. Note (21-1) Long -Term Debt, Debt Service Funds Debt Servic�Reserves General Long -Term Debt The reserves have been established in compliance with the ordinances authorizing the debt and are equal to the amounts required by the ordinances. Reserves established to provide for the next succeeding maturities of principal and interest are as follows: A sinking fund reserve has been established to provide for term maturity of the Public Service Tax and Bridge Revenue Bonds. The General Long -Term Debt portion of this reserve, based on the original allocation of bond proceeds, Is $240,669 as of September 30, 1992. A contingency reserve has been established pursuant to the authorizing bond ordinance to meet principal and Interest requirements for the Public Service Tax and Bridge Revenue Bonds should other resources be unavailable. The General Long -Term Debt portion of this reserve is $203,135 as of September 30, 1992. A contingency reserve has been established pursuant to the authorizing bond resolution to meet principal and Interest requirements of the Tax Increment Revenue Bonds, Series 1987 should other resources be unavailable. The reserve balance at September 30, 1992 Is $862,927, which exceeds the maximum required balance of $116,700 required by the authorizing resolution. D Princi al Interest General Obligation Bonds: $ 67,500 $ 10,277 1978 Issue Indebtedness of the Community Redevelopment Agency (includes Tax Increment and Lease Revenue Bands, Series 1986 and Tax Increment Revenue Bonds, Series 1987) 125,000 193,193 Public Service Tax and Bridge Revenue Bonds, (this represents 33.065% of the total Issue - see Note (20) 121,238 52.807 313 738 E§§.2_77 A sinking fund reserve has been established to provide for term maturity of the Public Service Tax and Bridge Revenue Bonds. The General Long -Term Debt portion of this reserve, based on the original allocation of bond proceeds, Is $240,669 as of September 30, 1992. A contingency reserve has been established pursuant to the authorizing bond ordinance to meet principal and Interest requirements for the Public Service Tax and Bridge Revenue Bonds should other resources be unavailable. The General Long -Term Debt portion of this reserve is $203,135 as of September 30, 1992. A contingency reserve has been established pursuant to the authorizing bond resolution to meet principal and Interest requirements of the Tax Increment Revenue Bonds, Series 1987 should other resources be unavailable. The reserve balance at September 30, 1992 Is $862,927, which exceeds the maximum required balance of $116,700 required by the authorizing resolution. D CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 A Debt Service Reserve Account has also been established pursuant to the Loan Pool Agreement with First Florida Governmental Financing Commission to pay the City's proportionate share of the principal and Interest requirements of the underlying revenue bonds should an Insufficiency of funds exist due to the City's failure to make a loan repayment in the full amount or because of an event of default under the Loan Pool Agreement. The General Long -Term Debt reserve balance at September 30, 1992 Is $45,011, which represents 6.6% of the total required reserve account. The remaining balance of the required reserve (93.4% of the total) is reflected In the Garage and Solid Waste Utility Funds. Note (3) Restricted Assets, Proprietary Funds Note (3A) Water and Sewer Utility Fund Assets in the Water and Sewer Utility Fund restricted for construction consist of the following: Proceeds of Utility Revenue Certificates, 1972 and 1975 Series, Utility Revenue Bonds, 1978 Series, and Water and Sewer Revenue Bonds, 1987,1988A and 19888 Series, the use of which Is restricted to construction of water and sewer Improvements authorized by the relevant ordinances; assets remaining at September 30, 1992 are: Equity In Pooled Cash and Investments $ 9,977,487 Water Improvement charges, the use of which is restricted by the ordinance authorizing the collection of such charges to the construction of additions and Improvements to the Water system; assets remaining at September 30, 1992 are: Equity in Pooled Cash and Investments 180,492 Due from Other Funds 490,829 Sewer improvement charges, the use of which is restricted by the ordinance authorizing the collection of such charges to the construction of additions and Improvements to the sewer system; assets remaining at September 30, 1992 are: Equity In Pooled Cash and Investments 1,140,719 Due from Other Funds 399,008 Proceeds of the Local Option Sales Tax designated as "Penny for Pinellas ", which is restricted by voter referendum and the terms of the Interlocal agreements between Pinellas County and the municipalities receiving the tax to the construction of specific Infrastructure capital Improvements; assets remaining at September 30, 1992 are: Due from Other Funds 119,035 Contributions by a neighboring municipality toward the cost of Improvements to sewage treatment facilities In the northeast area of Clearwater; assets at September 30, 1992 are: Due from Other Governmental Entitles 141.646 12 449 216 CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Assets of the Water and Sewer Utility Fund restricted under the provisions of the ordinances authorizing the issuance of revenue bonds consisted of the following at September 30, 1992: Water and Sewer Revenue Bon Debt Service: Equity in Pooled Cash and Investments Investments (U.S. Government Securities) Accrued Interest Receivable on Investments Renewals and Replacements: Equity in Pooled Cash and Investments Due from Other Funds $ 9,500,862 5,147,396 145,008 1,741,779 2.546.340 19 081.385 Assets of the Water and Sewer Utility Fund representing Customers' Deposits and therefore restricted, amounted to $1,926,322 at September 30, 1992, consisting entirely of Equity in Pooled Cash and Investments. Note (313) Gas Utility Fund Assets of the Gas Utility Fund restricted under the provisions of the ordinance authorizing the issuance of revenue bonds consisted of the following at September 30, 1992: Gas System Revenue Bonds Debt Service: Equity in Pooled Cash and Investments $ 761,698 •• Renewals and Replacements: Equity In Pooled Cash and Investments 300,000 Construction: Investments (U.S. Government Securities) 4M.978 1 558 67q Assets of the Gas Utility Fund representing Customers' Deposits and therefore restricted, amounted to $602,621 at September 30, 1992, consisting entirely of Equity in Pooled Cash and Investments. Note (3C) Solid Waste Utility Fund Restricted assets in the Solid Waste Utility Fund designated for construction consist of the following: Assets of the Solid Waste Utility Fund restricted under the provisions of the Loan Pool Agreement with the First Florida Governmental Financing Commission consisted of the following at September 30, 1992: Loan Pool Agreement Debt Service: Investments Held by Escrow Agent (Primarily Alachua County, Florida Revenue Bonds) $67,808 Accrued Interest Receivable on Investments 742 68 550 Assets of the Solid Waste Utility Fund representing customer deposits, and therefore restricted, amounted to $122,677 at September 30, 1992, and consisted entirely of Equity in Pooled Cash and Investments. CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Note (3G) Parking System Assets in the Parking System restricted under the provisions of the ordinances authorizing the issuance of revenue bonds consisted of the following at September 30, 1992: Parking Svstgm Revenue Bonds Debt Service: Equity in Pooled Cash and Investments $ 322,188 Renewals and Replacements: Equity in Pooled Cash and Investments 135,034 Public Servic e Tax and Bridgg Revenue B nr Debt Service: Equity In Pooled Cash and Investments 346,803 Investments (U.S. Government Securities) 288,081 Accrued Interest Receivable on Investments 8,933 Note (3H) Pier 60 Fund 1 101 039 Restricted assets contributed to the Pier 60 Fund by the Special Development Fund consist of the following: Proceeds of the Local Option Sales Tax designated as `Penny for Pinellas', which is restricted by voter referendum and the terms of interiocal agreements between Pinellas county and the municipalities receiving the tax to the construction of specific Infrastructure capital improvements; assets remaining at September 30, 1992 are: a Due from Other Funds $145.451 y Note (31) Garage Fund Assets of the Garage Fund restricted under the provisions of the Loan Pool Agreement with the First Florida Governmental Financing commission consisted of the following at September 30, 1992: Loan Pool Agreement Debt Service: Investments Held by Escrow Agency (Primarily Alachua County, Florida Revenue Bonds) $534,063 Accrued Interest Receivable on Investments 5,748 $539,811 Note (3J) Current Liabilities Payable from Restricted Assets As of September 30, 1992 with comparative figures for 1991, the current liabilities payable from restricted assets of the Enterprise Funds were as follows: Accounts Payable Construction Contracts Payable Accrued Interest Payable Due Other Funds Current Portion of Long Term Debt (Revenue Bonds) Customer Deposits September 30. 1992 September 30 1991 $ 12,304 152,046 $ 516,384 1,828,196 1,811,200 202,469 2,447,928 2,281,612 _7..651.67.0 _x.768.030 s.7.692,0114 7 579,695 r f CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 3Q, 1992 It is the City's opinion that it has no liability for losses under the plan, but does have the duty of due care that would be required of an ordinary prudent Investor. The City believes that it Is unlikely that it will use the assets to satisfy the claims of general creditors In the future. In accordance with the requirements of GASB Statement No. 2, the operations of the plan are accounted for In an Agency Fund In the accompanying financial statements, with the invested assets being reflected therein at market value. Note (4E) Post Retirement Benefits The City provides no post retirement benefits to retired employees or to their beneficiaries other than those described In preceding Notes (4A) through (41D). Note (5) Fixed Assets General Fixed Assets: A summary of changes in General Fixed Assets follows: Balance Balance Oct. 1. 1991 Additions Deletions Sept. 30, 1992 Land $25,294,024 $ 3,159,193 - $28,453,217 Buildings 14,388,049 143,834 - 14,531,883 Improvements Other Than Buildings 26,700,265 451,286 $ (4,900) 27,146,651 Equipment 17,280,823 1,252,540 (1,320,922) 17,212,441 Construction in Progress 2.298.847 7.797,463 12.298,847) 7.797,463 $85.962.008 $12.804,316 3 624 669 $95.141,655 sn t Land: Land accounted for In the General Fixed Assets Account Group Includes a number of parcels that have been donated to the City. With respect to certain parcels, the instrument conveying title to the City contains restrictions as to the purpose for which the land may be used by the City, with the provision that title shall revert to the donor of such restrictions are not followed. Land subject to such restrictions Is carried at estimated fair market value in the hands of the donor immediately prior to the donation; therefore, the valuation used does not reflect the Impact the restrictions as to use might have on the fair market value of such land in the ownership of the City. roMiGI6V l Proprietary Funds: CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 oft A summary of cost and accumulated depreciation of fixed assets of the ProprletanM Funds at September 30. 1992 follows: Estimated Internal Useful Life Enterprise Service ear Land $ 8,070,293 $ 1,103,616 Buildings 11,193,765 2,894,034 10-40 Improvements Other Than Buildings 187,968,355 18,831 5 -50 Machinery and Equipment 7,672,749 25,872,543 1 -331/3 Construction in Progress 19.870.411 185.308 234,775,573 30,074,332 Less Accumulated Depreciation 53.380, 4 16.755.851 Net $181,395,093 $13,318,471 Contributed Property: As of September 30, 1992, water lines having an estimated cost of $4,244,548, sanitary sewer lines having an estimated cost of $7,204,455, and storm sewers having an estimated cost of $3,832,365 are reflected In the balances of the proprietary fixed assets. Assets Recorded Under Capital Leases: Assets recorded under capital leases and the accumulated depreciation thereon (for proprietary fund assets) have been included under the appropriate categories In the summaries and schedules presented previously in this note in combination with similar information for owned assets. Mote (6) Property Taxes Property tax revenue is recognized in the fiscal year for which the taxes are levied provided the availability test Is met, In conformance with NCGA Interpretation #3. Property taxes for the following fiscal year are levied by commission action in September of each year. This levy is apportioned to property owners based on the previous Jdrfuary 1 assessed values. Tax bills are mailed out on or about November 1, and the collection period runs from November 1 through March 31, resulting in almost 99% of the taxes being collected in the fiscal year for which they are levied. Since no taxes are ever collected prior to November 1, the City does not record deferred tax revenue for advance collections. Uncollected taxes receivable at year -end are recorded, with an appropriate allowance for estimated uncollectible amounts. The net amount ,"deemed to be collectible but not current, I.e., not expected to be collected within sixty days after the close of the fiscal year, Is shown as a deferred revenue In the appropriate fund. All delinquent property taxes, except those levied specifically for the restricted purposes of financing activities accounted for in the Special Development Fund, are recorded In the General Fund. This Is appropriate, since for several years the budgetary and accounting treatment has been to recognize the tax revenues in the General Fund and to reflect the required transfers to the appropriate debt service or pension fund as operating transfers from the General Fund to the appropriate fund. The City is permitted by State law to levy ten mills without referendum. Additional millage not subject to the ten mill limitation is authorized If approved by referendum. The tax rate for the year ended September 30, 1992 was 5.1158 mills, of which .0327 mills represent the levy for general obligation bond debt service as approved in voter referendums In prior years. The non -voted tax rate of 5.0831 mills Is well below the statewide ten mill limitation. CITY OF CLEARWATER, FLORIDA 1) Fn's NOTES TO FINANCIAL STATEMENTS P�Rp SEPTEMBER 30, 1992 Note (7) Segment Information for Enterprise Funds The City maintains eight Enterprise funds which provide utilities (water and sewer, gas, solid waste, and stormwater), toll bridge, marina, parking, and pier fishing. Segment information for the year ended September 30, 1992 was as follows: 15 497 149 893 101 $249,525.756 96 051 630 20 780 055 $140,817,203 Note (8) Interfund Payables and Receivables (Current) As mentioned in Note (1 C), individual fund deficits in the consolidated cash pool have been reclassified as of September 30, 1992 as Interfund loans from the Capital Improvement Fund, which was selected by management for this purpose, This reclassification results in a corresponding reduction in the cash equity In the Capital Improvement Fund, offset by an increase In Interfund receivables. The amounts of the i reclassified cash pool deficits, as well as other individual fund Interfund payable and receivable balances (current), at September 30, 1992 were as follows: Depreciation Net and Operating Operating Net Contri- Operating Amortization Income Transfers Income butions Revenue Expense Loss In Out Loss During Year Water and Sewer $28,081,682 $3,699,535 $ 6,554,463 $(1,152,239) $3,635,006 $768,496 Gas 11,304,825 544,671 2,675,776 (833,510) 1,658,074 (8,803) Solid Waste 11,058,909 318,247 6,993 (621,809) (209,918) - Stormwater 3,396,396 645,259 1,207,872 (526,960) 832,238 824,775 Toll Bridge 1,564,632 578,821 345,146 - 337,418 - Marina 1,521,303 79,297 (60,045) 19,999 138,691 Parking System 1,831,357 145,806 (217,599) 16,001 (239,558) - Pier 60 246.998 43.790 (85.6601 (55,110 255,431 51006,102 6 055,426 $10,426,946 3 a 98 518 ja&26 841 $1 839.899 Long -Term Unre- Debt Out- stricted Additions Deletions standing Net to to Excluding Working Plant and Plant and Total Current Capital Fund Eauipment Eaubment Assets Portion Deficit Eauity Water and Sewer $ 8,668,155 $ (832,816) $195,708,885 $83,878,940 $15,351,582 $104,389,379 Gas 2,483,867 (20,651) 19,686,107 7,637,123 539,491 8,517,129 Solid Waste 665,887 - 5,535,354 446,746 1,764,728 4,289,817 Stormwater 2,177,429 - 13,767,853 - 1,633,355 13,725,800 Toll Bridge 1,111,442 (7,546) 7,102,570 2,055,449 538,263 4,636,083 Marina 173,524 (31,309) 1,661,714 245,633 341,356 1,295,668 Parking System 98,600 (541) 5,294,186 1,787,739 449,075 3,204,769 Pier 60 118.245 (238) 769,087 - 162.205 758.563 15 497 149 893 101 $249,525.756 96 051 630 20 780 055 $140,817,203 Note (8) Interfund Payables and Receivables (Current) As mentioned in Note (1 C), individual fund deficits in the consolidated cash pool have been reclassified as of September 30, 1992 as Interfund loans from the Capital Improvement Fund, which was selected by management for this purpose, This reclassification results in a corresponding reduction in the cash equity In the Capital Improvement Fund, offset by an increase In Interfund receivables. The amounts of the i reclassified cash pool deficits, as well as other individual fund Interfund payable and receivable balances (current), at September 30, 1992 were as follows: =J, Fund General Fund Capital Projects Fund: Capital Improvement Enterprise Funds: Water and Sewer Utility Gas Utility Solid Waste Utility Stormwater Utility Toll Causeway and Bridge Yacht Basin and Marina Parking System Pier 60 Internal Service Funds: Garage Administrative Services General Services N CITY OF CLEARWATER, FLORIDA t%J0 0, W Qtly' JaoLl � NOTES TO FINANCIAL STATEMENTS iti SEPTEMBER 30, 1992 Net Interfund Receivables Net Interfund Pa ables Deficit In Other Deficit in Other Pooled Cash Receivables Pooled Cash Payables $ 85,088 $3,686,157 21,216,358 $13,708,605 1,849,019 $1,801,268 521,328 1,050,274 2,097,563 710,111 128,317 159,632 405,266 304,170 1,519,134 19,000 686157 X21.822.774 1,572,566 184,006 12&L6.1 57 $2822.774 Note (9) Contingencies and Commitments Utilities Services Tax Revenues Utilities Services Tax Revenues of the General Fund are pledged as security for the Public Service Tax and Bridge Revenue Bonds, Series 1985. PACT, Inc. As more fully disclosed in Note 18, the City has contingently guaranteed $1,000,000 plus accumulated interest on a 1981 $5,500,000 mortgage note used for the construction of Ruth Eckerd Hall. As of September 30, 1992, the remaining principal balance on the mortgage was $4,703,803, and the amount of the City's guarantee, Including interest, was approximately $2,123,747. As Indicated In Note 18, PACT, Inc. and its related fund raising arm, The Performing Arts Center Foundation, Inc., had combined net increases In fund balance for the fiscal year ended September 30, 1992, marking only the third (consecutive) year in their history that this has happened. These results continue to be achieved through efforts on the part of PACT management to Increase fund raising and reduce expenditures. City management does not consider it probable that this guarantee will be called, and, accordingly, no amounts have yet been accrued or otherwise recorded on any of the accompanying financial statements to reflect this possibility. Securities Purchase Commitment On April 5, 1978, the City, In order to provide for the retirement of a term maturity of the Utility Revenue Bonds, Series 1978, entered into a securities purchase agreement providing that the City shall be obligated to purchase treasury bonds at a price of 98.375% of principal amount on specified semiannual purchase dates beginning June 1, 1978 and ending December 1, 1992. As a result of the refunding of the 1978 bonds by the Water and Sewer Revenue Bonds, Series 1987, and the subsequent refunding of the 1987 Bonds, the City's continued obligation to purchase the securities Is no longer connected to any City bond issue. The City intends to continue to purchase the remaining securities from the resources of the City's CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 consolidated Pooled Cash and Investments. With respect to this obligation, the City is subject to normal fluctuations in interest rates, and therefore market risk to the extent that the securities could otherwise be bought at more favorable prices on the dates when future purchases are required. The amount of required purchases at September 30, 1992 Is as follows: December 1, 1992 $580,413 Contingent Loan Guarantee On March 30, 1992, the City Commission approved a contingent loan guarantee of $1 million for the Chi Chi Rodriguez Youth Foundation, Inc. for the purpose of refinancing existing foundation debt which was used to construct a golf course on a parcel of City owned land. The new foundation loan totals $2.5 million. In the event of default, the City is obligated to contribute $1 million out of legally available non -ad valorem revenues. In addition, the City has the option to retire the entire unpaid balance and assume ownership and operation of the golf course facility. The foundation is currently operating the course at a profit and expects to be able to meet all debt service payments. At the present time, management does not consider It likely that the City's guarantee will be Invoked. Note (10) Individual Fund Notes Note (10A) Capital Improvement Fund The Capital Improvement Fund was created administratively to provide for combined accounting presentation of all capital projects from the City's various fund sources, except those projects financed from bond proceeds where bond ordinance provisions require the segregation of bond proceeds In separate funds. The majority of the resources of the Capital Improvement Fund are provided by transfers of capital project appropriations from source r'unds. The appropriations are held and invested for the benefit of the source funds until the projects are completed or canceled, at which time the asset values are transferred back to the source fund or to the General Fired Assets Account Group, as appropriate, and any unspent monies are returned to the donor fund. Transfers from the Proprietary Funds and expenditures for capital projects of such funds are not reflected in the Combining Statement of Revenues, Expenditures and Changes in Fund Balances of the Capital Improvement fund, but are reflected when expended as fixed assets in the respective Proprietary Funds. The Capital Improvement Fund Schedules are included as supplemental schedules along with the individual fund statements in the City's Comprehensive Annual Financial Report to provide Information as to the status of each authorized project. Beginning balances represent amounts expended on the projects prior to fiscal year 1992. Note (10B) Water and Sewer Utility Fund Contractual Commitment Under the terms of a 30 -year contract between the City and Pinellas County which is effective through September 30, 2005, the City is required to purchase a minimum of 4 million gallons of water per day on an annual average basis from the County within each calendar year, with a maximum amount of water available to the City of 10 million gallons per day on an annual average basis. The current rate at September 30, 1992 charged by the County, which is set by the Board of County Commissioners, is $1.3254. per 1,000 gallons, including a $30 per 1,000 gallons surcharge designated by the supplier for funding capital projects. The cost of water purchased from the County during fiscal years 1991 -2 and 1990 -9f was $6,247,788 and $5,232,988, respectively. jtl n L . Liu fJVA �1 U CITY OF CLEARWATER, FLORIDA NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1992 Transactor During fiscal year 1992, the Water and Sewer Utility Fund transferred buildings with a book value of $521,328 to the Gas Utility Fund. Notes (10C) Toil Causeway and Bridge Fund During the 1989 fiscal year, the City engaged the engineering firm r David Clear a Associates to perform a comprehensive analysis and recommendation regarding the future of the Clearwater Pass Bridge. Their report, dated August 1988, recommended replacement of to the State bridge Florida h af high d le as i tan bridge, and currently estimated to cost $17 million. The City applied this project is included in the state's five -year capital improvement program, with construction scheduled to begin In January 1994. The City currently anticipates the new bridge opening to traffic dopted toll u January 1996. Since state funding will require no tolls and no debt on the new bridge, Y effective October 1, 1988, which are projected to generate funds sufficient to defease all remaining bridge debt before the new bridge is open to traffic. As a result, the City anticipates termination of operation of the existing toll bridge, and depreciable lives on all assets have been shortened as necessary to accomplish full depreciation on September 30, 1995. It is currently expected that nondepreciable assets, consisting of bridge approaches (cost $170,943) and constructed jetties (cost $3,051,366) will be transferred to the General Fixed Asset Account Group, at cost, on the date the existing Bridge ceases operations. Note (10D) Garage Fund The Garage Fund is an Internal Service Fund which provides been In vehicles and related services to other City departments. Charges to user departments have been set f excess of actual expenses incurred to enable the fund to accumulate resources for the stated purpose of replacing the fleet as required. This Hy policy has been clew for he Garage Fu has been d p presented to and adopted by hie Clearwater City lCommission.t with a budgets Nonrash Transaction During fiscal year 1992, the Garage Fund transferred land with a cost of $751,732 to the General Fund. The land was subsequently recorded in the General Fixed Asset Account Group. Note (1OE) fnterfund Property Swap ssion authorized he City Commied an interfund property swap involving the Solid Waste During fiscal year 1992 t Fund and the Garage Fund. C Pursuant to the terms authorized by the Commission, 9.99 acres of property owned by the Solid Waste Fund known as the 'Airpark Scholl Board Site" were swapped for 9tra acres of property owned by the Garage Fund known as the'Campbell Property.' In connection with this transactor, p Solid Waste ue es 4 debt on the Campbell t (Capital Improvement Rev nBo ds, assumed the and made apital contribution o $,646tohe Garage Fund to complete the transfer at cost. Note (11) Excesses of Expenditures Over Appropriations Total transfers out of the Community Redevelopment Agency amounted to $2,190,043, while appropriations this fund for the current l a year were e s h In the Special et Fund a mounted to $2,380,850, while appropriations In is fund for he current fiscal year we $576,500. Note (12) Fund Deficits The General Services Internal Service Fund had an unreserved accumulated deficit of $320,736; this deficit results part a tai billings are based and the actual costs of such services; adjustments In future billings will daps r 4 r") E; CITY OF CLEARWATER, FLORIDA I FOR plSCU5514 NOTES TO FINANCIAL STATEMENTS pq pp5E.5 Otat -y• SEPTEMBER 30, 1992 eventually eliminate the deficit. The Pier 60 Enterprise Fund has an unreserved accumulated deficit of $159,114. Note (13) Residual Equity Transfers Between Funds The amount of residual equity transfers in for budgetary funds amounted to $24,898. Residual equity transfers out for all funds amounted to $1,870,337. Residual equity transfers of $1,080,206 consist of net contributions to Proprietary Funds with credits being made directly to contributed capital accounts In the appropriate funds. Note (14) Contributed Capital - Proprietary Funds The changes in contributed capital of the City's proprietary funds during fiscal year 1992 were as follows: The City's other proprietary funds had no change in contributed capital during fiscal year 1992. Note (15) Pending Litigation There is pending against the City a class action suit brought by approximately 130 current and former employees alleging violations of the Federal Age Discrimination in Employment Act. Prior to 1988, employees who were age 45 or older on the date of hire were considered ineligible to participate in the General Employees' Pension Plan, and were enrolled in social security Instead. The age 45 exclusion was deleted in 1988 by a pension plan amendment approved by the voters at referendum, as required by the pension ordinance. The plaintiffs are seeking certain back and future pension benefits which they have estimated to be In the range of eight million dollars, plus an equal amount In liquidated damages, plus attorneys fees and costs, estimated at $300,000. Outside counsel engaged by the City has estimated that the City's chances of Incurring some loss as a result of this lawsuit are greater than remote but less than probable, and that some Water and Sewer Gas Stormwater utility utility utility Pier 60 Airpark Fund Fund Fund Fund Fund Additions: Contributions from: Developers $ 698,981 Property Owners 69,515 1,100 Federal and State Grants Other Governmental Entities Other Funds _ 824.775 255,431 Total Additions 768,496 1,100 824,775 255,431 Return to General Fund of Contributions of Prior Years (9,903) Closure and consolidation of Airpark to the General Fixed Asset Account Group (514,235 Net Additions (Reductions) 768,496 (8,803) 824,775 255,431 (514,235) Contributed Capital, October 1, 1991 61,601.648 634,280 11.729.689 662.246 514.23:2 Contributed Capital, September 30, 1992 62 370 144 625,477 12.554.464 917.677 �® The City's other proprietary funds had no change in contributed capital during fiscal year 1992. Note (15) Pending Litigation There is pending against the City a class action suit brought by approximately 130 current and former employees alleging violations of the Federal Age Discrimination in Employment Act. Prior to 1988, employees who were age 45 or older on the date of hire were considered ineligible to participate in the General Employees' Pension Plan, and were enrolled in social security Instead. The age 45 exclusion was deleted in 1988 by a pension plan amendment approved by the voters at referendum, as required by the pension ordinance. The plaintiffs are seeking certain back and future pension benefits which they have estimated to be In the range of eight million dollars, plus an equal amount In liquidated damages, plus attorneys fees and costs, estimated at $300,000. Outside counsel engaged by the City has estimated that the City's chances of Incurring some loss as a result of this lawsuit are greater than remote but less than probable, and that some ENTERPRiSE FUNDS Enterprise Funds are used to account for the financing, acquisition, operation and maintenance of governmental facilities and services that are supported primarily by user charges. Water and Sewer Utility to account for the financing, construction, operation and maintenance of the water and sewer services of the City from charges made to users of the service. The service area for water and sewer extends beyond the City limits. Gas Utility to account for the financing, construction, operation and maintenance of the gas service of the City from charges made to users of the service. The service area for gas extends beyond the City limits. Solid Waste Utility to account for the financing, construction, operation and maintenance of the sanitation service of the City from charges made to users of the service. The service area for sanitation is coterminous with the City limits. Stormwater Utility to account for the financing, construction, operation and maintenance of the stormwater management system of the City from charges made . for each developed property. The stormwater management area is coterminous with the City limits. Toll Causeway and Bridge to account for the financing, operation and maintenance of the toll bridge crossing Gearwater Pass, from tolls paid by users of the bridge. Yacht Basin and Marina to account for the financing, operation and maintenance of the 205 -slip City marina and associated real property on Clearwater Beach from rents collected from users. Parking System to account for the financing, construction, operation and maintenance of the Cltys parking system, Including on- and off - street parking on Clearwater Beach and Downtown Clearwater from parking charges. Pier &o to account for the operation and maintenance of the fishing pier from user charges. Airpark to account for the operation and maintenance of the airpark from rents collected from user charges. During fiscal year 1992 this fund was closed to the General Fund. K) W CITY OF LC EARWATER. FLORIDAR ENTERPRISE FUNDS i COMBINING BALANCE SHEET SEPTEMBER 30 1992 WfTH COMPARATIVE TOTAL FIGURES FOR 1991 d Water FOR p1SS;IGt: and I Pn °DES ���'�• Sewer Gas Solid Waste Stormwater Ply Utility Utility Utility Utility ASSETS Current Assets: Cash on Hand and in Banks Equity in Pooled Cash and Investments Cash with Escrow Agent Accounts and Contracts Receivable: Billed Unbilled Charges Estimated Less: Allowance for Uncollectible Accounts Total Receivables, Net Interest Receivable Due from Other Funds Due from Other Governmental Entities Inventories, at Cost Prepaid Expenses and Other Assets Total Current Assets Restricted Assets: Equity in Pooled Cash and investments Due from Other Funds Due from Other Governmental Entities Investments, At Cost or Amortized Cost (Market Value, $5,481,495 for Water and Sewer, $427,342 for Gas, $73,323 for Solid Waste, $618,096 for Toll Causeway and Bridge, $43,260 for Yacht Basin and Marina, and $316,446 for Parking System) interest Receivable Total Restricted Assets Advances to Other Fund Deferred Charges Property, Plant and Equipment, Net of Accumulate. Depreciation See accompanying notes to Financial Statements, $ 325 400 200 70,050 2,877,349 658,066 376,691 472,841 2,112,497 421,517 398,716 126,935 1,281,265 514,917 565,954 274,915 3,393,762 936,434 964,670 401,850 (119,865) (25,147) (21,043) (6,703) 3,273,897 9111287 943,627 395,147 10,153,393 1,849,019 1,050,274 807,420 224,627 70,050 349,085 658,066 4,400 91285 16,883,076 3,428,057 2,440,842 1,675,408 24,467,661 1,664,319 122,677 3,555,212 1,290,143 141,646 5,147,396 496,978 67,808 145,008 742 33,456,923 2,161,297 1911227 1,290,143 1,576,196 220,931 143,792,690 13,875,822 2,903,285 10,802,302 $195,708,B85 19,686,107 5,535,354 13,767,853 ® Page 1 of 2 f Toll Yacht Causeway Basin ?�Re�S�S Totals and and Parking Pier Bridge Marina System 60 Airpark 1992 1991 i } 15,500 900 2,800 400 20,525 19,075 263,129 107,187 13,610 4,110,807 4,104,190 293 293 29,585 9,498 3,069,163 2,878,959 2,637,051 2,372,308 9,498 5,706,214 5,251,267 (172,758) 89,842 r. 9,498 5,533,456 5,161,425 4,186 710,111 159,632 405,266 158,719 15,293,834 16,150,735 25,210 319,887 163,265 10,000 14,670 6,631 1,038,452 828,263 13,940 27,625 14,246 735,904 461,769 547,094 172,729 26,344,879 26,474,970 849,834 804,025 27,908,516 27,923,913 145,451 4,990,806 7,152,447 141,646 279,647 562,655 40,360 288,081 6,603,278 6,104,020 17,448 442 8,933 172,573 172,575 1,429,937 40,802 1,101,039 145,451 39,816,819 41,632,602 171,838 171,838 197,145 1,797,127 1,964,797 _4,936,729 1,159,143 3,474,215 450,907 181,395,093 173,097,307 7,102,570 1,661,714 5,294,186 769,087 0 249,525,756 243,386,821 CITY OF CLEARWATER. FLORIDA_ ENTERPRISE FUNDS COMBINING BALANCE SHEET, Continued SEPTEMBER 3011992 WITH COMPARATIVE TOTAL FIGURES FOR 1991 \55510 �. ��� Q05F5 ONE LIABILITIES AND FUND EQUITY Current Liabilities (Payable from Current Assets): Accounts and Contracts Payable Accrued Payroll Accrued Interest Payable Due to Other Funds Due to Other Funds (Deficit in Pooled Cash) Deposits Current Portion of Long -Term Liabilities: Advances from other funds Revenue Bonds Notes, Loan Pool Agreement and Acquisition Contracts Total Current Liabilities (Payable from Current Assets) Current Liabilities (Payable from Restricted Assets): Accounts Payable Construction Contracts Payable Accrued Interest Payable Due to Other Funds Current Portion of Long -Term Liabilities, Revenue Bonds Customer Deposits Total Current Liabilities (Payable from Restricted Assets) Total Current Liabilities Long -Term Liabilities, Excluding Current Portion: Revenue Bonds Notes, Loan Pool Agreement and Acquisition Contracts Interest Earnings Rebatableto U.S. Treasury Advances from Other Funds Total Long -Term Liabilities Total Liabilities Water 379,887 601,027 116,861 and Other Funds Federal and State Grants 17,661,858 Sewer Gas Solid Waste Stormwater Utility Utility Utility Utility 4,192,329 24,450 $ 690,397 363,310 287,493 10,367 403,677 143,655 246,345 31,686 25,106 5,892 Retained Earnings: 521,328 Reserved for: 1,801,268 430,000 Revenue Bond Requirements: 64,000 721,030 7,420 33,899 72,384 1,531,494 2,888,566 676,114 42,053 12,304 152,046 1,668,400 40,668 2,150,000 1,926,322 602,621 122,677 5,909,072 643,289 122,677 7,440,566 3,531,855 798,791 42,053 82,775,027 7,494,523 127,339 20,618 142,600 319,407 1,083,295 831878,940 7,637,123 446,746 91,319,506 11,168,978 1,245,537 42,053 Contributed Capital: 379,887 601,027 116,861 12,554,464 Other Funds Federal and State Grants 17,661,858 90,194 Developers 32,555,008 Property Owners 4,192,329 24,450 Other Governmental Entities 7,581,062 62,370,144 625,477 207,055 12,554,464 Total Contributed Capital Retained Earnings: Reserved for: Revenue Bond Requirements: 10,994,120 721,030 68,550 Debt Service Sinking Fund - Term Maturities 2,854,596 Renewals and Replacements 1,589,663 300,000 15,438,379 1,021,030 68,550 _ Unreserved 26,580,856 6,870,622 4,014,212 1,171,336 Total Retained Earnings (Deficit) 42,019,235 7,891,652_ 4,082,762 1171,336 Total Fund Equity 104,389,379 8,517,129 4,289,817 13,725,800 $195,708,885 19,686,107 7715,535,354 13,767,853 See accompanying notes to Financial Statements { p� Page 2 of 2 {: r Toll Causeway Yacht Basin �� Totals and and Parking O� S�� t� 6 park 1992 1991 Bridge Marina SY s _tem ���SA�i - � -� 523 12,147 22,979 1,554 1,388,770 951,507 1,660,822 783,833 51,233 33,315 32,626 8,970 34,451 10,768 3,453 521,328 24,542 1,929,585 2,032,489 128,317 17,256 15,239 11,698 5,558 15,000 15,000 548,424 462,822 17,568 36'856 158,503 121,265 44,800 120,413 98,019 ll),524_ 5 5,111,760 G 197,641 �- 12,304 152,046 516,384 1,828,196 1,811,200 64,747 54381 , 202,469 2,447,928 2,281,612 148,650 149,278 2,651,620 2,768,030 7'092,094 7,5 2 203,659 301,678 10 524 �- 12- 656,918 12,6_ 91,475 411,038 1 _-- ' 94,240,077 95,571,737 2,055,449 1,787,739 667,934 609.111 f 185,309 1,083,295 i,1i1,615 60,324 75,324 60,324 �_ --- 96,051,630 97,367,787 _ 2,055,449 1,787,739 -- -� 10,524 108,708,548 110,Ob9.262 2,466,487 366,046 2,089,417 �-- 632,281 1,777 753,581 910,557 15,950,435 17,759,172 15,168,132 '17,985,407 7,120 32,555,008 31,856,027 4,674,603 4,603,988 225,822 232,002 7,581,062 7,581,062 ---- -- 753,561 - ---' -` 917,677 �-- 78,520,280 77,194,fi16 - -- erg 103 2- 3g,77g ---- 12,727,777 8,998,186 429,011 40,802 474,264 3,705,332 3,703,050 562,655 288,081 2,249,572 4,534,745 224,874 135035 , ---- 18,682,681 17,235,981 1,216,540 897,380 - (159'114) _ 43,614,247 38,89.6,962 2 X61,440 1,021,087 1,5 _ (159,114) 62,296,928 56.132,943 3,777,980 1,0-1 988988 2,451,188 - 758,563 140,8- 17,208 133,327,559 4,636,083 1,295.668 3,204,769 - 7_ 087 249,525,756 243,3 ®86,821 7,102,57_0_ 1,6� a 5'294 "186 69-= CITY OF CLEARWATER, FLORIDA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS YEAR ENDED SEPTEMBER 30 1992 WITH COMPARATIVE TOTAL FIGURES FOR 1991 Water and Sewer Gas Solid Waste Stormwater Utility Utility Utility Utility Operating Revenues: Sales to Customers Service Charges to Customers User Charges to Customers Fo��rjC�S Rentals Q� Total Operating Revenues Operating Expenses: Personal Services Purchases for Resale Operating Materials and Supplies Transportation Utility Service Solid Waste Dumping Charges Depreciation Interfund Administrative Charges Other Current Charges: Professional Fees Advertising Communications Insurance Repairs and Maintenance Rentals Miscellaneous Amortization Data Processing Charges Taxes Provision for Estimated Uncollectible Accounts Total Other Current Charges Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses): Earnings on Investments Interest Expense and Fiscal Charges Amortization of Bond Discount and Issue Costs Lose on Exchange of Assets Losses from Writedowns and Replacements of Fixed Assets Loss from Domolition of Sewer Facilities Due to State D.E.R. Requirements Recycling Program Incentive Grant Insurance Recovery Department of Environmental Regulation Grant Other Income (Loss) Before Operating Transfers Operating Transfers In Operating Transfers Out Net Income (Loss) Before Extraordinary Item Extraordinary Item - Lose on Early Extinguishment of Debt Not Income (Los:) Retained Earnings, Beginning of Year Residual Equity Transfer In Retained Earnings, End of Year Soo accompanying notes to Financial Statemonts. $ 27,724,808 10,940,272 356,874 300,137 122,160 64,416 28,081,682 11,304,825 4,656,884 1,891,687 6,247,788 3,961,846 1,408,274 125,334 461,061 246,433 1,200,263 50,223 3,594,851 512,998 2,799,025 791,760 260,121 85,515 72,221 86,774 120,961 76,736 288,910 256,510 276,880 31,535 3,876 5,424 58,024 43,890 30,690 16,790 6,993 410,533 120,811 35,061 1,160,073 1,048,768 21,527,219 8,629,049 6,554,463 2,875,776 2,273,714 120,720 (4,432,668) (428,670) (104,684) (31,673) (5,629) 10,977,542 3,379,444 81,367 16,952 11,058,909 3,396,398 3,473,573 897,968 122,160 122,348 2,004,455 173,271 34,363 2,491,584 3,648,614 1,359,108 316,534 645,259 1,062,380 217,710 16,559 87,489 239 _ (526,900) 77,046 4,311 135,490 10,090 72,221 3,670 9,586 66 18,148 7,644 23,410 6,240 39,118 12,460 389,817 131,970 11,051,916 2,188,524 6,993 1,207,872 161,769 151,326 (36,613) (1,713) 230,036 496,320 91,060 51,419 (1,767,218) (184,192) 404,898 151,326 4,787,245 2,491,584 411,891 1,359,108 (1,152,239) (833,510) (621,809) (525,960) (1,152,239) (833,610) (621,009) _ (526,900) 3,635,006 1,658,074 (209,918) 832,238 3,635,006 1,658,074 (209,918) r 832,238 38,384,228 6,233,578 4,292,680 339,099 5 42,019,234 7,891,652 4,082,762 1.171,337 ..0, ®RAFT FOR oit UNLYI Toll Yacht Causeway Basin PURPOSES Total¢ and and Parking Plar Bridge Marina System 60 Airpark 1992 1891 826,639 108,624 53,958,329 48,423,683 100,840 856,170 833,353 1,564,632 36,893 1,724,901 137,374 3,528,216 3,620,931 657,771 5,818 663,387 602,660 1,684,632 1,521,303 7831,357 248,998 59,006,102 53,689,635 353,882 459,547 537,799 129,878 12,400,167 11,500,857 643,420 75,409 10,928,463 9,977,985 18,419 40,749 63,274 7,692 1,898,250 1,538,521 506 5,745 19,688 2,911,039 2,430,649 7,048 $)1,941 20,003 7,557 1,411,428 1,644,122 3,648,614 3,850,168 500,070 78,274 137,258 43,790 5,829,034 4,517,972 80,381 131,390 958,110 43,140 6,083,676 6,044.792 47,588 7,954 173,204 582 678,092 1,101,243 4,469 3,270 94,762 87,070 1,303 8,083 18,868 502 307,800 249,318 100,590 69,650 18,570 11,430 888,240 738,270 4,547 18,858 11,090 2,415 421,214 1,245,331 35,846 704 95,407 150,909 143,708 778 12,891 4,015 6,685 148,875 224,884 66,G88 68,986 146,391 1,600 7,410 3,750 540 90,430 82,564 465 50 757 411,805 381;287 _ 207,250 107,853 259,220 130,282 322,944 25,181 3,468,255 4,499,897 1,219,426 1,581,348 2,048,956 332,650 48,579,156 45,904,961 345,146 (60,046) (217,599) (85,880) 10,426,946 7,764,674 157,880 42,701 120,298 21,571 3,119,787 2,885,198 (152,889) (21,368) (178,065) (5,250,173) (4,587,987) (11,763) (1,023) (8,548) (159,404) (97,124) (766) (1,781) (541) (238) (8,955) 241,672 (130,795) (3,000,462) 230,036 216,562 596,281 18,724 160,208 28,898 9,217 837,122 349,228 (7,728) 178,737 (37,960) 30,650 (1,231,687) (3,488,702) 337,418 118,692 (255,559) (55,110) 9,195,359 4,275,972 19,999 36,000 55,999 111,602 (19,999) (3,154,517) (3,627,766) 19,999 16,001 (3,098,518] (3,518,164) 337,418 130,691 (239,668) (55,110) 8,098,841 769,808 (861,038) 337,418 138,891 (239,558) (56,110) 8,096,841 (91,226) 3,440,662 923,198 2,690,746 (104,004) (67,144) 56,132,943 68,577,552 07,144 67,144 (2,353,381)_ 3,777,080 1,061,889 2,451,188 (159,114) 62,206,928 56,132,943 CITY F CLEARWATER FLORIDA ENTERPRISE FUNDS .YEAR ENDED SEPTEMBER COMBINING 992 WITH CSTATEMENT MPARAT VE TO1TAL FIGURES FOR 1991 DRAFT FOR DISCUSSION PURPOSES ONLYA Cash Flows from Operating Activities: Cash Received from Customers Cash Received from Other Funds Cash Payments to Suppliers Cash Payments to Employees Cash Payments to Other Funds Other Revenues Not Cash Provided (Used) by Operating Activities Cash Flows from Noncapital Financing Activities: Operating Transfers In Operating Transfers Out Contributions (To) From Other Funds Grant Revenue Insurance Proceeds Interest Paid Loans from Other Funds, Net Net Cash Provided (Used) by Noncapital Financing Activities Cash Flows from Capital and Related Financing Activities: Principal Payments on Debt Interest Paid Acquisition of Fixed Assets Proceeds from Sales of Assets Proceeds from Issuance of Debt Cash Deposited with Escrow Agent for Bond Defeasance Payment of Bond Issue Costs Payments on Advances from Other Funds Insurance Proceeds Received Capital Contributed by: Other Funds Other Governmental Entities Property Owners Developers Net Cash Provided (Used) for Capital and Related Financing Activities Cash Flows from Investing Activities: Purchase of Investment Securities Interest on Investments Loans to Other Funds, Net Cash Received on Receivables Proceeds from the Sales and Maturities of investments Interest Rebatable to the U,S. Treasury Net Cash Provided (Used) in Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash equivalents at End of Year See accompanying notes to Financial Statements. Water and Solid Sewer Gas Waste Utllity Utility Utility $ 26,779,250 11,343,400 11,245,974 (10,121,405) (5,262,843) (3,949,860) (4,624,462) (1,881,599) (3,399,161) (3,685,201) (1,110,951) (3,272,422) 497,673 90,268 8,_845.855 3,178,275 _51,419 675,950 (630,911) (833,510) (621,809) 254,992 — 360_9_ — 5(833 1 D) 202,461 11) ) (2,423,624) (2,247) (55,699) (3,700,228) (465,669) (37,466) (7,609,509) (1,885,412) (474,548) 20,654 176,499 (9,903) 69,515 1,100 698,981 (12,944,211) (2,185,63?) (5— 67,713) (496,978) 2,271,036 190,720 161,773 2,108,472 (323,010) 4,3 —_ {28,320} (629,268) 133,453 (349,759) (470,135) 77,334 27,695,094 3� 33,586 422,234 $ 27,345,335 (136,549) 499,568 197,153 7,479,975 (7,242,785) (217,212) (15,000) 25,307 10,307 (15,000) 400,000 824,775 Am a Page 1 of 2 3,328,260 I)Itp 'Flr 1,794,054 DISMSI 70,615 129,343 FOR ONLY' 698,981 467,465 Toll Yacht (225,397) PURPOSES 137,186 (18,965,403) (22,579,769) Causeway Basin Totals Stormwater Utility and Bridge and Marina Parking System Pier 60 Airpark 1992 1991 3,421,918 1,564,632 1,366,348 1,924,197 246,998 57,892,717 52,663,119 1,437 147,882 147,882 146,100 (213,025) (209,432) (876,724) (370,621) (118,964) (21,122,874) (19,542,371) (875,646) (339,993) (454,180) (532,463) (125,018) (12,232,522) (11,447,008) (409,447) (88,611) (161,085) (1,009,391) (47,228) (9,784,336) (9,989,871) 53,169 95,574 1,562,517 146,268 28,898 9,217 2,386,260 201,771 119231800 2,489,113 168,509 40,620 (34,995) 17,287,127 12,031,740 30,110,263 30;014,689_ 19,999 36,000 55,999 102,060 (526,960) (19,999) (2,633,189) (3,618,223) 53,169 53,169 (2,362,620) 254,992 329,433 196,281 (3,410) 202,461 48,904 (526,960) 19,999 16,001 53,169 (2,066,568) (5,307,575) (166,218) (44,463) (173,216) (2,865,467) (2,786,328) (171,785) (21,938) (182,048) (4,579,134) (6,162,867) (2,177,429) (1,060,422) (143,996) (98,600) (118,245) (13,568,161) (19,746 1) ,43 197,153 7,479,975 (7,242,785) (217,212) (15,000) 25,307 10,307 (15,000) 400,000 824,775 255,431 1,070,303 3,328,260 1,794,054 70,615 129,343 698,981 467,465 (1,352,654) (1,398,425) (225,397) (428,557) 137,186 (18,965,403) (22,579,769) (496,978) (1,023,100) 151,325 157,952 42,701 124,616 21,571 s 3,121,694 1,244,022 5,123,017 (9,055,684) 278,891 (710,111) 7,874 4,860 (122,954) 1,437 16,500,087 (28,320) 170,41_5 430,216 (552,159) 50,575 129,476 (101,383) 3,840,418 11,716,172 474,402 538,529 13,686 (242,460) 808 53,169 95,574 (4,139,432) (1,561) 198,488 250,343 1,156,472 13,202 (53,169) 30,014,689 34,154,121 r 472,841 737,017 264,029 914,012 14,010 30,110,263 30;014,689_ , p�tiR =OF CLEARWATER FLQRIDA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS, Continued YEAR ENDED SEPTEMBER 30,1992 WITH COMPARATIVE TOTAL FIGURES FOR 1991 Reconciliation of Operating Income to Not Cash Provided (Used) by Operating Activities: Operating Income (Loss) Adjustments to Reconcile Operating income (Loss) to Net Cash Provided (Used) by Operating Activities: Other Revenue from Nonoperating Section of Income Statement Depreciation Provision for Uncollectible Accounts Amortization Miscellaneous Expense Change in Assets and Liabilities: Decrease (increase) In Accounts Receivable Decrease (Increase) In Amount Due from Other Governmental Entities Decrease (Increase) in Inventory Decrease (Increase) in Prepaid Expenses Increase (Decrease) in Accounts and Contracts Payable Increase (Decrease) in Amount Due to Other Governmental Entities increase (Decrease) in Deposits Increase (Decrease) in Accrued Payroll Total Adjustments Net Cash Provided (Used) by Operating Activities Soo accompanying notes to Financial Statements. Water and Solid Sewer Gas Waste Utility Utility Utility $ 6,554,463 2,675,776 61993 496,320 91,060 51,419 3,594,851 512,998 316,534 120,611 35,061 39,118 (805,068) 46,022 67,982 (269,318) (82,631) (131,853) 11353 (792) (568,101) (52,638) 409 (228,046) 31,421 (7,447) 10,088 119,083 74,412 2,291,392 502,499 668,957 $8,845,855 3,178,275 675,950 Page 2 of 2 Toll Yacht Causeway Basin Totals Stormwater and and Parking Pier Utility Bridge Marina System 60 Airpark 1992 1991 1,207,872 345,146 (60,045) (217,599) (85,660) 10,426,946 7,764,674 160,208 28,898 9,217 837,122 347,871 645,259 500,070 78,274 137,258 43,790 5,829,034 4,517,972 12,460 207,250 107,853 66,988 66,988 148,391 (4,785) 25,522 (7,073) 93,334 (579,281) (701,479) 1,562,517 (494) 1,292,705 72,882 4,295 (210,189) 11,610 (13,940) (13,379) (6,347) 10,367 523 (109) (6,598) (7,203) (623,350) 120,103 1,532 485 (114,393) (400,854) 22,320 13,869 5,367 5,336 4,861 167,674 53,849 715,928 2,143,967 228,554 258,219 50,665 6,860,181 4,267,066 1,923,800 2,489,113 168,509 40,620 (34,995) 17,287,127 12,031,740 SUPPLEME14TAL SCHED' r Page 1 014 CITY OF GLEARWATER, FLORIDA B CUMULATIVE SCHEDULE OF AUTHORIZATIONS AND EXPENDITURES C���1 Q�tioY FOR PROJECTS FUNDED BY ENTERPRISE FUND RESOURCES YEAR ENDED SEPTEMBER 30,1992 Y Project Project Project Expenditures Authorization Aulhorl- Prior Years Current Cumulative Not of Number Description zations (Cumulative) Year Total Expenditures Water and Sewer General Revenue 2808 Public Service Complex 500,000 500,000 500,000 2819 Office Mod & Central Counter Exp 18,000 18,000 18,000 4774 Aerial Photographs 12,802 12,802 12,802 6210 Pump Station Monitoring Control 250,000 131,028 77,002 206,030 41,970 6254 Northeast AWTPlant 5,651 5,651 5,651 6294 Computer Reporting System 69 ,059 69,059 69,059 6503 Utility Building Renovation 30,000 26,555 3,445 30,000 6509 Heating System Renovation 5,000 9,266 (4,266) 5,000 6510 Utilities Auxiliary Building 25,409 25,409 26,409 6511 CPU Cashiering System 23,800 23,800 23,800 6512 Telephone System Upgrade 13,681 13,681 13,681 6624 Sanitary Sewer Intercepter 1,421,659 1,398,887 12,280 1,411,167 10,392 6625 Lino Relocation 638,533 391,622 118,007 509,629 126,904 6627 East AWT Plant 207,606 61,693 80,059 141,752 65,854 6629 Lift Station R & R '89 679,817 365,674 145,286 510,960 168,657 6630 Sanitary Sewer Interceptor '89 12,002 12,002 12,002 6631 WPC: R &R'89 172,018 172,016 172,016 6632 Sanitary Sewer R & R '89 2,397,300 614,571 662,894 1,177,465 1,219,635 6633 Sanitary Sewer Rehabilitation 1,579,700 1,236,421 15,345 1,251,766 327,934 , 6634 Sanitary Utility Relocation Accom 425,000 1,610 1,610 423,390 6636 Water Conservation Rouse Program 1,550,000 2,000 80,960 82,980 1,467,040 6837 Marshall St lnterc Sevier Replacement 2,400,300 200,276 1,157,317 1,357,593 1,042,707 6838 Sludge Treatment Facility 2,711,625 303,832 303,632 2,407,793 6640 Rehab Pump Station #42 304,068 242,069 61,077 304,066 6641 Northeast Enging Generator 844,215 40,552 763,111 803,663 40,552_ 6642 Auto Continous Analyzer 49,718 49,716 49,716 { 6644 Pump Station 278,000 202,276 202,276 75,724 6645 Laboratory Upgrade 100,000 37,160 37,160 62,840 6646 East Plant Outfail 880,000 3,753 688,986 692,739 187.22281 , 6703 System R & R Capitalized '88 68,322 43,322 25,000 68,322 6704 Lino Relocation Capital '88 1,615,551 991,551 248,509 1,240,060 375,491 6706 System Expansion 189,864 69,864 69,864 120,000' 6710 Resevolr II Wells 308,114 152,270 155,044 308,114 6714 Standby Generator 103,098 103,098 103,098 6722 Line Relocation Maintenance 145,000 1,350 2,265 3,615 141,385 6727 Reverse Osmosis Pilot Study 1,701 1,701 1,701 6729 Eng.Fees - Various 71,000 51,226 1,000 52,226 18,774 6731 New Well Development 743,606 743,605 6732 Elevated Storage Tanks 150,000 150,000 6733 Meter Shop Vehicles 21,500 20,654 20,654 846 6735 Brackish Water Supply Study 86,305 86,'395 21,106,807 6,974,089 4,827,369 11,801,458 9.305,349 'j Contributions - Impact Foes 1 2808 Public Service Complex 150,000 150,000 150,000 6254 Northeast AWT Plant 618,717 618,717 618,717 6261 E Lake Chautauqua Pump 6,286 5,286 5,286 0262 E Lake Chautauqua Inter 31139 3,130 3,139 6626 Line Relocation 160,000 150,000 6027 East AWT Plant 64,347 04,347 04,347 ''-�' UPPLEMENTAL SCHEDULE Page 2 0l4 CITY OF CLEARWATER, FLORIDA CUMULATIVE SCHEDULE OF AUTHORIZATIONS AND EXPENDITURES FOR PROJECTS FUNDED BY ENTERPRISE FUND RESOURCES, CONTINUED YEAR ENDED SEPTEMBER 30,1992 Project Project Project Expenditures Authorization Authors- Prior Years Current Cumulative Net of Number Description zations (Cumulative) Year Total Expenditures 6628 Sand Key Subacqueous Inter 419 419 419 6630 Sanitary Sewer Interceptor '89 490,000 90,992 90,992 399,008 6636 Water Conservation Reuse Program 147,000 99,366 47,634 147,000 6637 Marshall St Interc Sewer Replacement 1,000,000 1,000,000 6638 Sludge Treatment Facility 599,581 599,581 6646 East Plant Outfali 210,000 210,000 6706 System Expansion 859,170 619,550 130,928 750,478 108,692 6710 Resevoir II Wells 708,193 259,211 277,846 537,056 169,137 6731 New Well Development 93,000 93,000 5,090,852 1,846,880 520,754 2,387,434 2,729,418 Renewal & Replacement 6294 Computer Reporting System 15,000 15,000 15,000 6511 CPU Cashiering System 5,000 5,000 5,000 6624 Sanitary Sewer Intercepter 420,000 420,000 420,000 6625 Line Relocation 35,000 35,000 6631 WPC R & R'89 439,668 206,907 97,397 304,304 135,364 6632 Sanitary Sewer R & R '89 1,385,942 529,103 529,103 856,839 6638 Sludge Treatment Facility 350,800 350.800 6640 Rehab Pump Station k42 8,160 8,160 8,160 6703 System R & R Capitalized '88 1,259,343 880,673 303,822 1,184,495 74,848 6704 Line Relocation Capitat'88 762,944 139,179 139,179 623,765 6705. Meter Changeout Program 498,848 372,418 96,822 469,240 27,608 6710 Resevoir If Wells 1,474 1,474 1,474 6714 Standby Generator 4,851 2,285 2,566 4,851 6721 System R & R Maintenance 465,149 320,336 55,260 376,598 80,553 6732 Elevated Storage Tanks 400,000 21,429 135,663 156,922 243,008 6,050,179 2,913,804 699,590 3,613,394 2,436,785 E.P.A. Grants 6254 N.E. AWT Plant 4,899,651 4,899,851 4,899,651 Other Municipalities Safety Harbor 8264 N.E. AWT Plant 421,441 421,441 421,441 Total Water &Sower 37,574,930 17,055,685 6,047,713 23,103,378 14,471,552 Gas System 6339 Additional Gas Service Llnee'88 860,413 461,114 142,070 603,734 246,629 0340 Line Relocation - Cap'88 1,756,833 854,938 142,039 996,977 759,850 6341 Gas Main Extensione'88 875,405 184,820 275,419 480,239 415,106 8342 Gas System R &A Capital '88 342,193 131,900 22,542 164,442 187,751 6348 Line Relocation- Maintenance 133,260 36,386 3,042 39,428 93,822 8349 System R & R Maintenance 81,721 37,626 42,667 80,103 1,628 8350 Electric Monitor and Control 136,E38 138,038 136,638 0352 Gas Mato( Change Out 267,501 190,342 52,136 248,478 9,023 6353 Gas Heat Pumps 60,000 60,000 8354 Gas Marketing Plan 80,000 60,000 6355 Hydraulic Pumps 48,580 48,590 0356 Liquid Propane 26,000 9,765 0,765 16.245 8357 Gas Vehicles 40,000 30,500 30.500 9,500 SUPPLEMENTAL SCHEr Pape 3 of 4 CITY OF CLEARWATER FLORIDA '. ,y ,�` �1 SCHEDULE OF AUTHORIZATIONS AND EXPENDITURES �� \r, CUMULATIVE FOR PROJECTS FUNDED BY ENTERPRISE FUND RESOURCES, CONTINUED & OHO S� �1�a�4 YEAR ENDED SEPTEMBER 30,1992 project Expendituroe Authorization Project Project Authorl- Prior Years Current Cumulative Total Expenditures Not of zations (cumulative) Year Number Description (4.389) 15.000 Utility Building Renovation 15,000 18,389 7 884 (5.162) 2.500 8503 Heating System Renovation 2,600 10,158 10,169 8509 utilities Auxiliary Budding 10 169 5.332 6.332 6510 6511 CPU Cashiering System 6'� ?'� 2,533 2,533 _____ _ VIO 7,807,1'10 6512 Telephone System Upgrade P 4,703,088 - - - -- 1,948.101 847.857 2.795,858 _ a awal and Replacement 790.399 500,474 289.925 780'399 8344 Gae System R & R -Cap '88 323 500 483.000 60.500 - 323.600 �- 6349 SystemR &R - Maintenance - 1', 13,899 �g3474 3Jrp�g25 �- 1.113.899 5,818,987 2,711,575 1.1 ga•?E2 3.909,857 _-.-- 1,907,110 - "'-- -- Total Gas �---- ----- Solid Waste 3,000 3,000 Office Mod. &Central Counter Exp. 3,000 59,885 59 885 .373,810 2819 8424 Minl Transfer Stations 433 895 132 152 788 940 37,516 226.456 105,698 88,625 6428 Facility R & R'88 1.093.995 888,537 136,533 19255 1,025,070 831,505 222,495 6427 ResidentConlalnerAcquisition'88 New Facility 1.054.000 812,250 714.124 175,189 889,313 85,254 6428 Community Container Acquisition 'IIa 974.667 557 940 428,192 784,132 81.228 6428 6433 Recycling Program 845 358 47,000 18,664 18,554 28 ,446 80,009 84.34 Solid Waste CMPTR 80,000 14.444 8,327 6435 TSF Station Utility Building Renovation 42,771 9,823 3• 4.621 9.428 12.961 44'539 8503 System Renovation Heating Sys 57,500 7.745 7.745 6509 6570 Utility Auxiliary Building 7.745 8544 8,544 II 544 8571 CPU Cashiering System 4,063 4,053 4'Q63 --- 6572 Telephone System Upgrade - 3,885,662 1,078.718 4,964.380 3,255,374 -- 830,288 -- Total Solid Waste --- ------ '- -'-' Stormwater Utlllty Fund 413,250 336,750 Master Plan 760,000 285,880 46,588 147,390 47,619 88,107 449,993 4403 2404 Unspecified Storm Drainage unspecified Storm 518,100 82,883 82 683 82,971 18,228 2413 Forest Woods Drainage 48,200 37.971 37,971 2,380, 386.823 2414 Jeffords Street Creek Sim. System Upgrade 2,787.207 1.121,890 1,258,494 316.281 647 993 388,118 2492 Stevenson Drainage R & R'89 1,317.901 611 732 7,700 9.699 112,292 2468 Storm Mlsc. Ponding 121.901 7.899 1.300 2498 office Mod. and Central Counter Exp. 1,300 62.287 52,287 Oat 9 2415 HighA.in/Sandy Allen's Crook 52.287 52,287 160,000 18.005 18,005 750,000 1,681,995 6101 Steven's Creek 16000 ,0 2,.250 2.260 608,670 6102 Stmwtr Improv 610,920 300,Dt0 300,910 142,590 6103 8104 Storm Drainage 443,600 - _ 2.158,087 4,t08,37t 8,483.100 2738732 , . - Total Stormwator -' v , tr UPPLEMENTAL SCHEDULE CITY OF CLEARWATER, FLORIDA Page 4 of 4 ,O ;•�� �'�� CUMULATIVE SCHEDULE OF AUTHORIZATIONS AND EXPENDITURES FOR PROJECTS FUNDED BY ENTERPRISE FUND RESOURCES, CONTINUED YEAR ENDED SEPTEMBER 30.1992 Project Project Project Expenditures Authorization Authod- Prior Years Current Cumulative Net of Number Description zations (Cumulative) Year Total Expenditures Toll Causeway and Bridge Fund 3468 Sand Key Bridge Replacement 1,085,321 464,779 207,494 872,273 413,048 3469 Sand Key Bridge R & R'89 1,544,000 614,999 819,787 1,434,788 109,214 3470 Bridges, Docks, & Seawalls 2,730 2,730 3474 Evaluation & Design Rockaway 702 702 702 3470 CLW Pass Bridge 100,000 500 500 99,500 3481 CLW Pass Bridge 2,000,000 22,739 22,739 1,977,261 Total Bridge 4,732,753 1,079,778 1,051,222 2,131,000 2,601,753 Marina 3413 Utility Service Replacement 115,328 109,516 4,749 114,265 1,063 3429 Dock Replacement and Repairs 53,740 43,544 9,134 52,678 1,082 3436 Marina Pile R& R 73,103 61,487 9,714 71,201 1,902 3443 Seminole Street Boat Ramp Dredge 191,363 184,445 873 185,318 8,045 3466 Boat Slips Dredge - Island Estates 40,000 2,630 30,288 32,918 7,082 3473 Marine Site Studies 73,086 15,384 6,632 22,016 51,070 3477 Marina Root Replacement 81.850 57,365 57,365 24,485 3480 Marina Sidewalk Replacement 350 ,068 33,144 33,144 316,922 Total Marina 978,538 417,006 151,899 568,905 409,631 Parking System 2612 Street Light Equipment 15,000 6,631 3,709 10,340 4,660 2629 McKay/Marianne Parking Lot 12,359 12,359 12,359 2630 Perking Lot Resurfacing 243,199 691 691 242,508 2632 Pkg Garage Strct 50,000 12,400 12,400 37,600 2633 S. Guifvw Pk 100,000 2,500 2,500 97,500 2817 Jolley Trolley Replacement 35 ,391 35,391 35,391 3247 Sailing Center Parking Lot 4,192 4,192 4,192 3310 Cleveland St. Beautification 4,908 3,538 3,538 1,370 3478 Marina Parking Lot 63,720 61,355 2,365 63,720 Total Parking System 528,769 88,075 57,058 145,131 383,638 Pier 60 3471 Big Pier 80 R & R '89 165,033 48,626 88,443 137,069 27,964 3482 New Pier 60 1,912,025 35,819 35.819 1,878,206 Total Pier 60 2,077,058 48,626 124,262 172,888 1,904,170 Total Enterprise Funds 65,136,683 28,792,831 11,418,809 38,211,640 26,924,943 y s CITY OF CLEARWATER, FLORIDA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1991 WITH COMPARATIVE TOTAL FIGURES FOR 1990 Governmental Fund Types Special Debt Capital General Revenue Service —Projects ASSETS AND OTHER DEBITS Cash on Hand and in Banks Equity in Pooled Cash and Investments Cash with Escrow Agent Investments Receivables (Net Where Applicable, of Allowances for Estimated Uncollectible Amounts): Accounts and Contracts Mortgages, Notes and Other Loans Accrued Revenues Interest and Dividends Rehabilitation Advances Delinquent Property Taxes Other Due from Other Funds Due from Other Funds (Deficit in Pooled Cash) Due from Other Governmental Entities Inventories, At Cost Prepaid Expenses /Expenditures and Other Assets Restricted Assets: Equity in Pooled Cash and Investments Due from Other Funds Due from Other Governmental Entities Investments, At Cost or Amortized Cost Interest Receivable Advances to Other Funds Deferred Charges °roperty, Plant and Equipment (Net of Accumulated Depreciation) Amount Available in Debt Service Funds Amount to be Provided for Retirement of General Long -Term Debt Amount to be Provided for Compensated Absences $ 20,055 8,994,383 8,882,458 1,074,106 34,639,957 4,963 285,304 271,182 10,000 129,375 1,313,675 57,329 7,956 437,507 41,610 15,000 202,469 3,426,538 518,355 1,249,663 24,805 34,624 75,324 it 690 105 10,360,435 1,372,329 38,.293,769 * See Note 19. See accompanying notes to Financial Statements. Page I of 2 Totals fiduciary Account (Memorandum InlYI ProprietarY Tvp Fund Tvpes - Fund nd TyR e - Groups General General 1990 Trust and Fixed Long -Term 1991 (Reclas_ s*Z Internal nc Assets -Debt _--- enterprise _Service _AU 418,751 535,063 19,075 1,775 377,846 71,588,078 54,328,652 4,104,190 7,264,565 6,628,419 34,548 10,475 132,698,530 29,585 153,487,430 153,772,734 5,432,607 4,827,015 3,096,051 2,797,043 5,161,425 2,956,676 1,378,960 1,312,616 2,812,980 2,925,487 4,186 2,808,794 1,000 1,000 479,117 494,302 79,787 94,911 75,000 4,787 18,166,196 12,560,736 3,601,704 16,150,735 1,797,992 3,426,538 1,956,088 2,202,129 1,013,372 1,004,360 163,265 828,263 185,109 82,182 55,296 14,246 33,312 27,923,913 33,695,663 7,185,643 3,782,896 27,923,913 33,196 ' 279,647 833,346 7,152,447 279,647 6,629,405 22,059,593 6,104,020 525,385 178,360 559,7.86 856,120 172,575 5,785 4,264,038 1,984,797 2.,002,787 197,145 3,991,569 1,984,797 272,336,316 7.61,7'92,743 173,097,307 13,232,001 45,000 85,962,008 1,372,329 1,807.008 1,372,329 6,037,662 6,037,662 6,675'401 2,300,890 2 app 19U 594 231,989 2 106,725 555 640,37 --- - ----� g p 1 ---- "-'- -~ 166, 85 962,008 �-- 27 1--- 45___ �._ 443,386821 '689 � 0, * See Note 19. See accompanying notes to Financial Statements. CITY OF CLEARWATER, FLORIDA COMBINED BALANCE SHEET - ALL SEPTEMBER 30 1991 WITH FUND TYPES AND ACCOUNT GROUPS, COMPARATIVE TOTAL FIGURES FOR CONTINUED 1990 Governmental Fund Types Special Debt Capital General Revenue Service Pro ects LIABILITIES Accounts and Contracts Payable S 80,794 72,694 853,651 Deferred Compensation Accrued Payroll 725 250 Accrued Compensated Absences Accrued Interest Payable Claims Payable Due to Other Funds 70 723 25,054,105 Due to Other Funds (Deficit in Pooled Cash) Due to Other Governmental Entities 22,006 751,516 Deposits 1,400 4,140 Other Miscellaneous Payables Payable from Restricted Assets Advances from Other Funds 729,436 3,459,278 General Obligation Bonds Payable Revenue Bonds Payable Mortggages, Notes, Loan Pool Agreements and Acquisition Contracts Payable Interest Earnings Rebatable to U.S. Treasury Deferred Revenue 595,764 37,840 Total Liabilities 2,225,373 4,325,468 25,907,756 EQUITY AND OTHER CREDITS Investment in General Fixed Assets Contributed Capital Retained Earnings: Reserved for: Revenue Bond Requirements Unreserved Fund Balances: Reserved for: Prepaid Expenditures 34,624 173,384 36,270 2,419,405 Encumbrances Debt Service Requirements 1,194,028 Capital Projects Appropriations 75,324 1,684,356 Advances to Other Funds Noncurrent Notes Receivable 106,974 Employee Retirement 543,553 Special Programs Unreserved: Designated for Special Programs 426,071 178,301 Designated for Debt Service Designated for Capital 2,494'746 9,739,297 Projects Appropriations Undesignated 9,181,400 742,997 227,311 Total Retained Earnings/ Fund Balances 9,464,732 6,034,967 1,372,329 12,381.6.013 Total Equity and Other Credits 9,464,732 6,034,967 1,372,329 12.386,-13 $11,690,105 10,360,435 1,372,329 38 293,L69 * See Note 19. See accompanying notes to Financial Statements. 71 Page 2 of 2 Proprietary Fiduciary Account 12,234,043 Totals Fund Types Fund Type Groups (Memorandum Only) 56,132,943 10,551,305 157,440,390 General General 230,266,833 133,327,559 15,142,228 157,440,390 Internal Trust and Fixed Long -Term 1991 1990 Enterprise Service Agency Assets Debt (Reclassified *) 1,660,822 173,071 193,943 3,034,975 2,180,539 8,563,406 8,563,406 6,890,199 783,833 411,354 1,920,437 1,586,470 2,300,890 2,300,890 2,106 725 10,768 55,774 66,542 75,081 2,477,543 2,477,543 3,305,180 24,542 25,149,370 16,343,632 2,032,489 1,394,049 3,426,538 3,601,704 773,522 634,793 15,239 57,854 78,633 84,231 54,359 54,359 62,842 7,579,695 7,579,695 11,431,659 75,324 4,264,038 896,120 810,000 810,000 1,495,000 96,034,559 255,028 4,450,387 100,739,974 101,365,320 730,376 7,105,379 2,149,604 9,985,359 10,487,460 1,111,615 131,263 1,242,878 1,067,523 633,604 685,621 110,059,262 12,003,461 8,869,562 9,710,881 173,101,763 164,300,099 85,962,008 85,962,008 77,194,616 4,590,923 81,785,539 17,235,981 531,171 17,767,152 38,896,962 10,020,134 48,917,096 34,624 2,629,059 1,194,028 1,684,356 75,32.4 106,974 154,400,729 154,400,729 543,553 426,071 178,301 93,295,549 67,777,906 16,421,910 50,883,902 19,544 1,124,664 1,461,992 10,244,447 90,324 128,489 135,882,866 864,188 345,016 12,234,043 2,964,763 3,039,661 13,191,369 9,834,728 56,132,943 10,551,305 157,440,390 253,382,679 230,266,833 133,327,559 15,142,228 157,440,390 85,962,008 421,130,226 391,340,288 243,386,821 27,145,689 166,309,952 85,962,008 9,710,881 594,231,989 555,640,387 CITY OF CLEARWATER, FLORIDA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED SEPTEMBER 30, 1991 WITH COMPARATIVE TOTAL FIGURES FOR 1990 Revenues: Taxes Licenses, Permits and Fees Intergovernmental Revenues Charges for Services: Administrative Charges to Other Funds Other Charges Fines Forfeitures and Penalties Miscellaneous Revenues Total Revenues Expenditures: Current: General Government Public Safety Physical Environment Transportation Economic Environment Human Services Culture and Recreation Capital Outlay Debt Service: Principal Retirement Interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financingg Sources (Uses): Proceeds of Indebtedness Operating Transfers In Operating Transfers Out Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balances, Beginning of Year Contributions from Other Funds Contributions to Other Funds Fund Balances, End of Year See Accompanying notes to Financial Statements, Special General Revenue $ 33,500,614 1,692,013 2,041,073 1,144,359 91723,108 6,805,804 4,372,727 14,845 1,036,081 493,594 1,400,912 361,668 1,411,156 _ 1,617,055 53,485,671 11,620,899 6,435,154 186,557 26,145,279 151,463 1,357,687 53,467 5,649,448 14,845 460,443 493,594 297,894 50,390 10,672,682 291,452 215,390 72,762 _ 51,091,349 1,457,158 2,394,322 10,163,741 4,020,635 387,574 (2,455,161) (12,032,956) 1,565,474 (11,645,382) 3,959,796 (1,481,641) 5,527,791 6,501,608 2,300,000 (22,855) (1,285,000) $_9,464 732 6,034,967 Debt Capital Service Projects 151,803 40,203 151,803 40,203 1,411,120 615,641 2,026,761 (1,874,958) 1,440,279 1,440,279 (434,679) 1,807,008 8,252,543 8,252,543 (8,212,340) 338,702 11,643,021 (26,746) 11,954,977 3,742,637 10,636,793 (1,993,417) 1,372,329 12,386,013 Totals (Memorandum Only 1991 1990 35,192,627 32,852,659 3,185,432 4,102,096 16,528,912 14,376,669 4,372,727 3,996,050 1,036,081 1,034,194 1,762,580 1,755,154 3,220,217 2,749,818 65,298,576 60,866,640 6,621,711 6,958,741 26,296,742 24,607,123 1,411,154 1,069,993 5,664,293 5,835,071 954,037 783,760 348,284 641,504 10,964,134 10,507,878 8,467,933 5,617,750 1,411,120 1,373,586 688,403 744,656 62,827,811 58,140,062 2,470,765 2,726,578 338,702 337,648 17,491,509 14,310,313 (14,514,863) (12,882,174) 3,315,348 1,765,787 5,786,113 4,492,365 24,473,200 20,248,750 2,300,000 (3,301,272) (267,915) 29,258,041 24,473,200 CITY OF CLEARWATER, FLORIDA COMBINED ATE STATEMENT A FUND AND ACTUAL (NON GAAP BUDGETARY BASIS) - GENERAL AND SPECIAL REVENUE FUND TYPES YEAR ENDED SEPTEMBER 30 1991 General Fund* Variance Favorable Revenues: Budget Actual (Unfavorable) Taxes Licenses, Permits and Fees $ 33,048,492 1,936,680 33,500,614 2,041,073 452,122 104,393 Intergovernmental Charges for Services: 9,528,410 9,723,108 194,698 Administrative Charges to Other Funds Other Charges 4,345,240 863,530 4,372,727 27,487 Fines Forfeitures and Penalties 1,346,980 1,036,081 1,400,912 172,551 53,932 Miscellaneous Revenues 1,208,593 1,411,156 202,563 Total Revenues 52,277,925 53,485,671 1,207,746 Expenditures: Current: City Commission Administration 221,600 1,212,785 210,327 1,181,139 11,273 31,646 Legal City Clerk 728,219 613,632 114,587 Administrative Services 493,188 1,519,560 450,633 1,511,214 42,555 8,346 Personnel Non - Departmental 665,130 1,763,460 633,113 1,851,291 32,017 (87,831) Police Fire 17,084,027 16,423,560 660,467 Public Works 8,624,218 7,023,482 8,531,103 6,929,640 93,115 93,842 Parks and Recreation Library 7,978,194 7,930,728 47,466 Planning and Development 2,446,675 2,582,017 2,376,960 2,533,594 69,715 48,423 Downtown Development Board Community Redevelopment Agency Total Expenditures (Budgetary Basis) 52,342,555 51,176,934 1,165,621 Excess of Revenues Over Expenditures (Budgetary Basis) (64,630) 2,308,737 2,373,367 Other Financing Sources (Uses): Operating Transfers In Operating Transfers Out 3,832,740 (2,707,234) 4,020,635 (2,455,161) 187,895 252,073 1,125,506 1,565,474 439,968 Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses (Budgetary Basis) 1,060,876 3,874,211 2,813,335 Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses for Non Budgeted Funds (See Note 1G) Encumbered Purchase Orders, Beginning of Year (87,799) (87,799) /Encumbered Purchase Orders, End of Year 173,384 173,384 Excess (Deficiency) of Revenues and Other Financing Sources Over xpenditures and Other Financing Uses (GAAP Basis) 1,060,876 3,959,796 2,898,920 Fund Balances, Beginning of Year 5,527,791 5,527,791 Contributions from Other Funds Contributions to Other Funds (22,855) 22 855) Fund Balances, End of Year S 6,588,667 9,464,732 2,876,065 * See Note 1G. See accompanying notes to Financial Statements. Special Revenue Fund Types* Totals Memorandum Onl 752 Variance - _ Budget Actual Favorable (Unfavorable) 1 667 831 1,115,000 1,144,359 24'182 5,704,975 5,535,645 (169,330) _ 317,450 1,450,415 1,132,965 8,805,256 9,822,432 1,017,176 Totals Memorandum Onl I 752 Variance - Budget Actual _ Favorable sUnfav, orable) 34,716,323 31051,680 35,192,627 3,185,432 476,304 15,233,385 15,258,753 133,752 25,368 4,345,240 863,530 4,372,727 1,036,081 27,487 11346,980 1,526,043 1,400,912 172,551 53,932 61,083,181 2,861 571 63,308,103 1,335,528 2,224,922 I 752 (752) 1,212,785 1,18,891 11,273 30,894 728,219 493,188 613,632 450,633 114,587 42'555 1,519,560 665,130 1,511,214 633,113 8,346 1,763,460 17,084,027 1,851,291 16,423,560 32,017 87,831) 250,000 250,000 8,624,218 7,023,482 8,531,103 6,929,640 60,467 93,115 93,842 8,228,194 2,446,675 8,180,728 2,376,960 69,715 69,715 221,468 161,420 182,311 138,207 34'151 23,213 2,582,017 221,468 2,533,594 182,311 48,423 - 632,888 _ 571,270 - 161,420 138,207 39,157 23,213 8,172,368 9,251,162 _ ..61.618 1,078,794 52,975 443 51,748,204 1,227,239 8,107,738 _11,559,899 3,452,161 366,574 (12,971,179) (12,610,605) 366,574 (11,132 658) (10,766,084) 1,844,521 4,199 314 L15,684,413) 4,387,209 13 587819) 187 895 1,844,521 (11,48 099) L9,200,610) 2109b,594 2,284,489 (4,438,237) (1,514,922) 2,923,315 (3,377,361) 2,359,289 5,736,650 58,818 58,818 (25,537) {25,537) 58,818 58,818 (113,336) (113,336) 173,384 v 173,384 (4,438,237) (1,481,641) 2,956,596 (3,377,361) 2,478,155 6,501,608 6,501,608 5,855,516 12,029,399 12,029,399 2,300,000 2,300,000 2,300,000 1 885 000) 1 285 000) 600,000 1 885 000) 1, 307 855) 577,145 2,478,371 6,034,967 _3,556,596 9,067,038 15,499,699 6,432,661 I CITY OF CLEARWATER, FLORIDA 1 COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES D BA RETAINED EARNINGS/ - AL PROS hIETARY IN FUND TYPES AND S HLANC YEAR ENDED SEPTEMBER 30 1991 WITH COMPARATIVE TOTAL FIGURES FOR 1990 Proprietary Fund Types Enterprise Internal Service Operatingg Revenues $48,423,683 Sales }o Customers 933,353 Service Charges to Customers 3,629,931 User Charges to Customers 18,209,210 Billings to Departments 682,668 Rentals Contributions from Employees Contributions from Employer Earnings on Investments Interest on Loans State Tax on Insurance Premiums Intergovernmental Revenues Miscellaneous Revenues 53 669,635 18 209,210 Operating Expenses: Personal Services 11,500,857 9 977,985 5,087,454 1,900,191 Purchases for Resale Operating Materials and Supplies 1,538,521 426,993 Benefit Payments Refunds 2,430,649 112,447 Transportation 1,544,122 271,556 Utility Service Solid Waste Dumping Charges 3,850,166 4,517,972 2,616,073 Depreciation Interfund Administrative Charges 6,044,792 4,499,897 129,030 6,540,845 Other Current Charges 45 904,961 17,184,589 7,764,674 1,024,621 Operating Income Nonoperating Revenues (Expenses): 2 885,198 895,5133 Earnings on Investments Interest Expense and Fiscal Charges (4,567,987 (97,124; (5§0,079) (16,383) Amortization of Bond Discount and Issue Costs 241,672 Gain on Exchange of Assets 217,824 Loss on Sale of Assets Losses from Writedowns and Replacements of fixed Assets E.P.A. Regulations (130,795 (3'206,562 10,994) Loss from Demolition of Sewer Facilities Due to Recycling Program Incentive Grant 596,281 Insurance Recovery Florida Department of Transportation Grant 18,724 349 228 97,232 I Other _ (3,488,702) 623,113 Income Before Operating Transfers 4,275,972 1,647,734 Operating Transfers In 111,602 (3,627,766) 195,311 (20,000) Operating Transfers Out (3,516,16 4) 175,311 759,808 1,823,045 Net Income Before Extraordinary Item Extraordinary Item - Loss on Early Extinguishment (851,036) of Debt (See Note 17) (91,228) 1,823,045 Net Income 58,577,552 8,728,260 Retained Earnings /Fund Balances, Beginning of Year Contributions to Other Funds 2 353 381) Retained Earnings /Fund Balances, End of Year 556,132,943 1015511305 See accompanying notes to Financial Statements, Totals Fiduciary Fund Types (Memorandum Only) Non - Pension Expendable 1991 1990 Trust Trust 48,423,683 45,777,004 933,353 862,680 3,629,931 3,587,229 18,209,210 15,684,608 682,668 660,726 2,939,160 2,939,160 2,804,999 4,565,900 4,565,900 4,216,459 16,040,202 3,585 16,043,787 12,845,118 32,126 32,126 28,704 865,655 865,655 841,819 60,101 17,629 87,800 105,429 31,700 24,428,546 123,511 96,430,902 87,401,147 16,588,311 15,074,327 11,878,176 11,118,676 1,965,514 1,583,450 5,081,107 5,081,107 4,626,349 247,839 247,839 485,877 2,543,096 2,199,736 1,815,678 1,486,794 3,850,166 3,841,567 7,134,045 6,134,606 6,173,822 3,749,163 581,737 53,012 11,775,491 11,834,081 5,910,683 53,012 69,053,245 62,134,626 18,517,863 70,499 27,377,657 25,266,521 3,780,712) 3,061,767 (5(113,507) (2 (64,262 241,672 217,824 (141,789 (8811 (370,6885 (3 016,562 2 273,272 596,281 18,124 446,460 339,494 (2,865,589) 448,974 18,517,863 70,499 24,512,068 25,715,495 364,207 671,120 (3,647,766) 804,094 (2,232,233) 364,207 (2,976,646) 1,1,428,139) 18,517,863 434,706 21,535,422 24,287,356 (851,036) 18,517,863 434,706 20,684,386 24,287,356 135,882,866 2,604,955 205,793,633 181,591,756 _. 53j 8 1 ) 85 479) 154,400,729 3,039,661 224,124,638 205,793,633 CITY OF CLEARWATER, FLORIDA COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS YEAR ENDED SEPTEMBER 30 1991 WITH COMPARATIVE TOTAL FIGURES FOR 1990 Cash and Cash Equivalents (4,139,432) (2,240,728) Proprietary Fund Types at Beginning of Year Enterprise Internal Cash and Cash Equivalents Service Cash Flows from Operating Activities: 5 L872,291 Cash Received from Customers $52,663,119 Cash Received from Other Funds 146,100 18,209,210 Principal-Collected on Loans and Advances Grant Revenue Interest Earnin s on Loans and Investments Cash Disbursed for Additional Loans and Advances Cost of Property Acquired at Foreclosure Sale Cash Payments to Suppliers (19,542,371) (9,143,520) Cash Payments to Employees (11,447,008)} (4,956,056)) Cash Payments to Other Funds (9,989,871 (933,687 Other Revenues 201,771 97,232 Net Cash Provided (Used) by Operating Activities 12,031,740 2,673,179 Cash Flows from Noncapital Financing Activities: Operating Transfers In 102,060 195,311 Operating ransfers Out 3,618,223 (20,000 ) Contributions to Other Funds 2,362,620) Grant Revenue 329,433 Insurance Proceeds 1(3,281 Interest Paid (25,095 Loans from Other Funds, Net 48,904 (316,336) Net Cash Provided (Used) by Noncapital Financing Activities (5,307,575) (166,120) Cash Flows from Capital and Related Financing Activities: Principal Payments on Debt 2,786,328) (1,733,049) Interest Paid 6,162,867) (542,207) Acquisition of Fixed Assets (19,796,131) (733,981) Proceeds from Sale of Assets, 41,437 243,668 Proceeds from Issuance of Debt 7,479,975 345,963 Cash Deposited with Escrow Agent for Bond Defeasance (1,242,785) Payments of Bond Issue Costs (217,212)} Payment on Advances from Other Funds (15,000 Insurance Proceeds Received 400,000 Capital Contributed by: Other Funds 3,328,260 Other Governmental Entities 1,794,054 Property Owners 129,343 Developers 467,485 Net Cash Used for Capital and Related Financing Activities (22,579,769) (2,419,606) Cash Flows from Investing Activities: Purchase of Investment Securities (1,023,100) Interest on Investments 5,123,017 895,569 Loans to Other Funds, Net (9,055,684) (3,280,777) Cash Received on Receivables 1,437 51,408 Proceeds from Sales and Maturities of Investments 16,500,0$7 679 Interest Rebatable to U.S. Treasury 170,415 4,940 Net Cash Provided (Used) in Investing Activities 11,716,172 ^ (2 328 181) Net Increase (Decrease) in Cash and Cash Equivalents (4,139,432) (2,240,728) Cash and Cash Equivalents at Beginning of Year 34,154,121 8,113,019 Cash and Cash Equivalents at End of Year S30,014,689 5 L872,291 See accompanying notes to Financial Statements. Page 1 of 2 1 Fiduciary Fund Type Totals (Memorandum Only) Hon- Expendable 1991 1990 Trust 52,663,119 51,149,708 18,355,310 97,705 15,814,502 132,411 97,705 60,101 35,461 35,461 (373,266 34,266 (485,302) (373,266 42 930 19,685 42,930 29,305,576 (26,082,837 (15,111,417 16,403,064 €10,923,558 (8,502,499 299,003 215,004 (302,715) 14,402,204 17,223,937 364,207 661,578 789,094)) ( ?x(94,167) �2,362,6201 329,433 180,705 196,281) 316,336) 267 43 2) 364,207 (5,109,488) (1,087,67 (2,604,705 (6,189,739 (24,519,377 6,705,074 0,285,105 (39,427,252 7,825,938 (7,242,785 (217,212 (15,000 (15,000) 400,000 3,328,260 1,794,054 308,223 4,263,097 129,343 467,485 1,367,019 (24,999,375) (42,790,671) (1,023,100) (950,237) 6,018,586 6,961,527 (12,336,461) (3,518,868) 52,845 (7,486) 16:500,765 �3 175,355 495,246 - 9,387,991 26,715,182 61,492 (6,318,668) 60,772 14 428) 42,252,712 42,191,940 47,064 35,934,044 42,252;712 CITY OF CLEARWATER, FLORIDA COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS CONTINUED YEAR ENDED SEPTEMBER 30, 1991 WITH COMPARATIVE TOTAL FIGURES FOR 1990 Proprietary Fund Types Enterprise Internal .Reconciliation of Operating Income to Net Service Cash Provided (Used) by Operating Activities: Operating Income $ 7,764,674 1,024,621 Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities: Other Revenue from Nonoperating Section of Income Statement Depreciation Provision for Uncollectible Accounts Amortization Miscellaneous Expense Change in Assets and Liabilities: Decrease (Increase) in Accounts Receivable Increase to Mortgage Loans Receivable Increase in Rehabilitation Advances Receivable Decrease in Due from Others Decrease Increase in Amount Due From Other Governmental Entities Decrease Increase in Inventory Decrease Increase in Prepaid Expenses Increase in Property Held for Resale Increase (Decrease) in Accounts and Contracts Payable Decrease in Rehabilitation Advances Payable Increase Decrease in Deposits Increase Decrease; in Accrued Payroll Total Adjustments Net Cash Provided (Used) by Operating Activities 347,871 97,232 4,517,972 2,616,073 107,853 148,391 (4,785) (701,479) 72,882 11,610 (17,336 (6,347) (5,459 120,103 (1,173,350) (400,854) 53,849 131,398 4,267,066 1,648,558 $12,031,740 2,673,179 Stormwater Utility Noncash Capital Financing Activities: During the current fiscal year, the Stormwater Utility Fund was established. The fixed assets that comprise the stormwater management system acquired prior to the establishment of the fund as well as certain assets purchased by other funds in the current year, were transferred to the Stormwater Utility Fund during the current fiscal year, and represent contributions from other City funds. These assets were transferred at cost less estimated depreciation to the date of establishment of the fund. Total capital contributed from other funds is $11,729,689 which consists of $2,878,260 in cash as reflected in this statemen Nnd $8,851,429 in net fixed assets. Garage Fund Noncash Capital Financing Activities: During the current fiscal year, the City purchased vehicles at a cost of $957,893 under various lease purchase agreements. See accompanying notes to Financial Statements. Page 2 of 2 Fiduciary Totals 1 Fund Type (Memorandum Only) Non- Expendable 1991 1990 Trust !t S 70,499 8,859,794 10,136,001 445,103 339,494 7,134,045 6,134,606 107,853 47,084 668 149,059 214,814 (4,785) 1,899 701,479) 510,810! s (324,677) 324,677) (332,875) 3 (1,000) 15,124 (1,000) 15,124 (; (382 72,882 (24,119 (5,726 (118,102 (11,806 (6,184 (45,000) (45,000 (1,053,247 103,378 (18,329) (18,329 (51,147) (400,854 306,887 185,247 38 227) `i (373,214) 5,542,410 7,087,936 (302,715) 14,402,204 17,223,937 w}` k: t9 CITY OF CLEARWATER, FLORIDA ENTERPRISE FUNDS COMBINING BALANCE SHEET SEPTEMBER 30, 1991 WITH COMPARATIVE TOTAL FIGURES FOR 1990 Water and Gas Solid Waste Stormwater Sewer Utility Utility Utility Utility ASSETS Current Assets: Cash on Hand and in Banks $ 200 Equity in Pooled Cash and Investments 3,068,808 422,034 Cash with Escrow Agent Accounts and Contracts Receivable: Billed Unbilled Charges Estimated 1,485,463 1,149,300 554,390 459,100 572,240 496,500 171,107 267,408 Less: Allowance for Uncollectible 2,634,763 1,013,490 1,068,740 438,515 Accounts 45,323 21,120 18,013 5,386 Total Receivables, Net 2,589,440 992,370 1,050,727 433,129 Interest Receivable Due from Other Funds Due from Other Governmental Entities 10,410,961 43,543 1,526,009 1,235,985 796,873 Inventories, at Cost 266,454 526,213 95,006 Prepaid Expenses and Other Assets 5,753 8,493 Total Current Assets 16,385,284 3,053,285 2,803,952 1,230,002 Restricted Assets: Equity in Pooled Cash and Investments Due from Other Funds 24,625,961 1,671,766 Due from Other Governmental Entities 51406,116 53,412 16,750 1,579,581 Investments,At Cost or Amortized Cost (Market Value, $5,222 178 for. Water and Sewer, $70,976 for Solid Waste, 580,389 for Toll Causeway and Bridge, 41,876 for Yacht Basin and Marina, and $297,294 for Parking System) 5,144,718 67,808 Interest Receivable 145,008 746 Total Restricted Assets 35,375,215 1,671,766 85,304 1,579,581 Advances to Other Fund Deferred Charges 1,680,881 236,928 Property, Plant and Equipment, Net of Accumulated Depreciation 139,552,202 11,925,604 2,553,932 9,270,132 $192,993,582 16,887,583 5,443,188 12,079,715 * See Note 19. See accompanying notes to Financial Statements. s Toll Yacht 5,251,267 4,592,908 Causeway Basin Parking Pier and and System 60 Bridge Marina 828,263 836,587 14.246 7.899 15,500 900 1,550 400 249,443 351,103 12,802 29,585 3,513,414 376,690 477,228 173,097,307 154,411,792 7,420,225 2,425 93,334 571,108 703,463 243,386,821 236,355,891 2,425 93,334 2,425 93,334 4,186 1,562,517 167,506 419,668 31,216 24,716 10,000 18,965 6,631 1,617,602 439,239 901,188 44,418 822,367 803,819 150,000 Page 1 of 2 Totals Airpark 1991 1990 (Reclassified *) 19,075 20,050 4,104,190 3,320,046 29,585 2,878,959 2,372,308 2,503,008 2,089,900 5,251,267 4,592,908 89,842 64,491 5,161,425 4528,417 4,186 553,945 16,150,735 10,430,525 163,265 330,294 828,263 836,587 14.246 7.899 26,474,970 19,473,818 27,923,913 33,695,663 7,152,447 3,633,228 226,235 279,647 833,346 562,917 40,362 288,215 6,104,020 21,533,529 17,448 440 8,933 172,575 553,945 1,402,732 40,802 1,100,967 150,000 226,235 41,632,602 60,249,711 197,145 197,145 217,783 66,988 1,984,797 2,002,787 4,332,903 1,095,202 3,513,414 376,690 477,228 173,097,307 154,411,792 7,420,225 1,575,243 5,712,714 571,108 703,463 243,386,821 236,355,891 s * See Note 19. See accompanying notes to Financial Statements. CITY OF CLEARWATER, FLORIDA ENPRIE FUNDS COMBINING BALANCESSHEET, SEPTEMBER 30 1991 WITH COMPARATIVE CONTINUED TOTAL FIGURES FOR 1990 Water and Sewer Gas Utility Solid Waste Utility Stormwater utility LIABILITIES AND FUND EQUITY Utility Current Liabilities (Payable from Current Assets): Accounts and Contracts Payable Accrued Payroll $ 906,466 415,948 287,084 Accrued Interest. Payable 372,256 133,567 17 1,933 9,366 Due to Other Funds 6,145 Due to Other Funds (Deficit in Pooled Cash) Deposits 1,338,380 1,561 Current Portion of Long -Term Liabilities: Revenue Bonds Notes, Loan Pool Agreement and 400,833 Acquisition Contracts Total Current Liabilities (Payable 3,406 73,396 from Current Assets) 1,682,961 1,887,895 539,158 10,927 Current Liabilities (Payable from _ Restricted Assets): Accounts Payable Construction Contracts Payable Accrued Interest Payable 516,384 Due to Other Funds 1,643,473 40,668 Current Portion of Long -Term Liabilities, Revenue Bonds Customer Deposits 2,004,167 Total Current Liabilities (Payable 2,154,368 610,068 3 ,594 from Restricted Assets) 6,318,392 650,736 3,, 594 Total Current Liabilities 8,001,353 2,538,631 _542594 I0, 9.27 Long -Term Liabilities, Excluding Current Portion: Revenue Bonds Notes, Loan Pool Agreement and 83,915,414 7,481,094 Acquisition Contracts Interest Earnings Rebatable to 7,644 372,381 U. S. Treasury Advances from Other Funds 1,083,295 28,320 Total Long -Term Liabilities _ 85,006,353 7,481,094 400,701 Total Liabilities 93,007,706 10,019,725 943, T _ 10,927 Contributed Capital: Other Funds Federal and State Grants 379,887 17,661,858 610,930 116,861 11,729,689 Developers Property Owners 31,856, 027 90,194 Other Governmental Entities 4,122,027 7,581,062 23,350 Total Contributed Capital 61,601,648 634,280 207,055 11,7299689 Retained Earnings: Reserved for: Revenue Bond Requirements: Debt Service Sinking Fund - Term Maturities 7,256,300 2,851,918 721,030 68,554 Renewals and Replacements _ 3,898,181 _ 300,000 _ Unreserved 14,006,399 1,021,030 _ 68,554 Total Retained Earnings (Deficit) 24,377,829 38,384,228 5,212,548 6,233,578 4,224,126 v 338,088 4,292,680 339.099 Total Fund Equity 99,985,876 6,867,858 _ 4,499,735 12,068,788 $192,993,582 16,887,583 5,443,188 12,079,715 * See Note 19. See accompanying notes to Financial Statements. Page 2 of 2 Yacht Totals Cauoll seway and Basin and Parking System Pier 60 Airpark 1991 1990 (Reclassified* Bridge Haring 12,256 29,577 8,757 734 1,660,822 783,833 1,255,222 729,983 37,364 27,948 27,290 4,109 10,768 12,084 4,023 15,000 9,542 53,169 24,542 2,032,489 15,000 ;I 2,881,638 l 639,379 10,166 5,073 15,239 14,457 a 27,703 34,286 462,822 519,200 44,463 121,265 128,628 704,446 113,856 105,768 12,866 53,903 5,111,780 5,556,212 19,134 4,222,152 68,695 58,364 202,469 516,384 1,811,200 202,469 1,88'2,207 138,515 138,930 2,281,612 2,768,030 2,138,500 3,169,666 207,210 197,294 202,469 7,579,695 11,431,659 911,656 113,856 303,062 12,866 256,372 12,691,475 16,987,871 2,209,904 1,465,325 95,571,737 1 95,844,715 229,086 609,111 727,246 1,111,615 941,200! 75,324 75,324 90,324 2,209,904 304,410 1,965,325 2,268,387 12,866 256,372 97,367,787 97,603,485 114,591,356 110,059,262 3,121,560 418,266 632,281 1,777 753,581 655,126 7,120 288,000 226,235 15,168,132 17,985,407 2,197,682 17,781,255 34,603,988 34,474,645 225,822 232,002 7,581,062 6,544,854 858,103 233,779 753,581 662,246 514,235 77,194,616 63,166,983 431,076 40,802 480,424 8,998,186 3,703,050 9,135,282 3,020,302 562,917 288,215 135,035 4,534,745 3,734,4'21 201,529 1,195,522 40,802 903,674 17,235,981 1518901005 2,245,040 882,396 1,787,072 104 004) (67,144) 38,896,962 42,687,547 3,440,562 923,198 2,690,146 (104,004) 67 144) 56,132,943 58,577,552 4,298,665 1,156,977 3,444,321 558,242 447,091 133,327,559 121 764,535 72420,225 1,575,243 5,712,714 571,108 703,A63 243,386,821 236,355,891 Operating Transfers In Operating Transfers Out (1,078,119) 824 100 ��) _(589,310) _ 1,045 635) L�� (1,078,119) (824,1 (589,310) (1045,635) CITY OF CLEARWATER, FLORIDA 28,905 130,820 ENTERPRISE FUNDS Extraordinary Item - Loss on Early Extinguishment of Debt 851 036) COMBINING STATEMENT OF REVENUES EXPENSES, AND CHANGES IN RETAINED EARNINGS (186,468) YEAR ENDED SEPTEMBER 30 1991 WITH COMPARATIVE TOTAL FIGURES FOR 1990 339,099 Retained Earnings Beginning of Year Contributions to other Funds Water and Gas Solid Waste Stomswater Retained Earnings, End of Year Sewer Utility Utility Utility o Utility Operatingg Revenues: Sales to Customers $ 24,671,253 9,295,460 11,063,739 2,424,162 Service Charges to Customers 389,402 351,038 66,707 User Charges to Customers Rentals Total Operating Revenues 25,060,655 9,646,498 11,130,446 2,424,162 Operating Expenses: Personal Services 4,719,382 1,747,886 3,401,541 231,011 Purchases for Resale Operating Materials and Supplies 5,235,331 1,151,193 3,980,098 162,288 103,057 23,860 Transportation 336,185 205,131 1,815,625 47,944 611 Utility Service 1,352,296 36,048 34,962 Solid Waste Dumping Charges Depreciation 2,439,671 472,439 3,850,166 284,662 475,382 Interfund Administrative Charges 2,878,932 760,621 977,616 137,848 Other Current Charges: Professional Fees 459,319 100,608 87,508 91,854 Advertising Communications 101,611 82,902 61,935 58,313 2,123 Insurance Repairs and Maintenance 236,200 828,207 241,750 163,598 90,740 132,441 14,646 Rentals Miscellaneous 113,424 17,837 51,274 9,886 Amortization Data Processing Charges 34,953 16,809 25,362 130 Taxes 360,458 Provision for Estimated Uncollectible 43,309 39,734 19,424 5,386 Accounts Total Other Current Charges 1,817,023 1,085,631 465,062 124,025 Total Operating Expenses 19,930,013 8,450,142 10,932,691 1,040,681 Operating Income (Loss) 5,130,642 1,196,356 197,755 1,383,481 Nonoperating Revenues (Expenses): Earnings on Investments Interest Expense and Fiscal Charges 2,106,869 (3,561,585) 207,657 (546,764) 86,278 (31,810) (104) Amortization of Bond Discount and Issue Costs (57,206) (14,919) (1,957) Gain on Exchange of Assets 241,672 Losses from Writedowns and Replacements of Fixed Assets (38,757) (1,128) (1,697) Loss from Demolition of Sewer Facilities Due to State O.E.R. Requirements (3,000,462) 216,562 Recycling Program Incentive Grant 196,281 Insurance Recovery Department of Environmental Regulation Grant Other 70,478 11,803 58,718 (4,238,991) (343,351) 522,375 _11357 1,253 Income (Loss) Before Operating Transfers 891,651 853,005 720,130 1,384,734 Operating Transfers In Operating Transfers Out (1,078,119) 824 100 ��) _(589,310) _ 1,045 635) L�� (1,078,119) (824,1 (589,310) (1045,635) Net Income (Loss) Before Extraordinary Item (186,468) 28,905 130,820 339,099 Extraordinary Item - Loss on Early Extinguishment of Debt 851 036) Net Income (Loss) (186,468) (822,131) 130,820 339,099 Retained Earnings Beginning of Year Contributions to other Funds 38,620,539 49 843) 7,055,709 4,161,860 Retained Earnings, End of Year S 38,384,228 6,233,578 44292,680 339,099 See accompanying notes to Financial Statements. ■ M, Toll Yacht 9,418 358 112,560 Totals 19,325 Causeway and Basin and Parking System Pier 60 Airpark 1991 1990 Bridge Marina (90:602) (69,602) 830,008 139,061 (8,401) 48,423,683 45,777,004 126,206 933,353 862,680 1,645,260 41,607 1,794,506 148,558 48,592 3,629,931 682,668 3,587,229 660,726 628,837 5,239 1,645,260 1,500,452 1,925,951 287,619 48,592 53,669,635 50,887,639 353,894 443,543 665,893 483,585 120,015 96,663 11,500,857 9,977,985 11,313,675 9,431,038 13,174 567 .17,110 5,813 61,407 19,285 3,470 2,962 99 1,538,521 2,430,649 1,220,973 2,113,683 7,197 84,510 19,439 7,979 1,080 1,544,122 3,850,166 1,244,981 3,841,567 544,012 115,593 92,554 148,465 137,693 971,730 43,843 42,350 27,716 11,637 4,517,972 6,044,792 3,896,960 3,614,953 178,474 6,054 164,800 2,560 2,424 10,066 450 1,101,243 87,070 873,225 45,287 2,322 100,740 1 294 7,192 45,770 14,957 9,090 865 7,980 6,000 249,318 738,270 368,076 882,720 21,970 35,748 45,001 1,037 11,031 104,451 4,522 23,915 2,470 1,245,331 143,706 1,243,009 139,449 4,604 11,549 9,184 6,450 656 224,864 148,391 214,941 201,564 148,391 1,750 9,290 200 3,690 50 580 554 25 92,564 361,287 446,293 240,743 107,853 47,084 493,999 127,387 317,253 25,935 43,582 4,499,897 4,702,391 1,528,436 1,585,275 2,010,392 340,255 87,076 45,904,961 41,380,221 116,824 (84,823) (84,441) 52 636). (38,484) 7,764,674 9,507,418 116,787 (208,785) (12,597) 400,000 28 295,433 412,257 90,602 90,602 502,859 27,093 330,608 (24,463) (191,170) (1,172) (9,273) (89,213) 9,907 (3,306) 18,724 181,591 15,477 9,418 358 112,560 145,642 19,325 (2,948) 27,737 61,201 (33,311) (41,432) 21,000 (90:602) (69,602) 27,737 (8,401) (33,311) (41,432) 502,859 27,737 (8,401) (33,311) (41,432) 2,937,703 895,461 5,002,685 (70,693) (25,712) (2,303,538) 3,440,562 923,198 2,690,746 04 ,004) (67,144) 2,885,199 (4,567,987) 241,672) (130,795) (3,000,462) 216,562 596,281 18,724 349.228 (3,488,702) 4,275,972 111,602 (3:627,766) (3,516,164) 759,808 (851,03 ) (91,228) 58,577,552 (2,353,381) 56,132,943 Z, 236, 112 (2,235,812) (45,970) (370,688) 273,272 311.015 167,989 9,675,407 114,443 (2,046,505) (1,932,062) 7,743,345 7,743,345 50,884,339 (50,132) _58,577,552 See accompanying notes to Financial Statements. CITY OF CLEARWATER, FLORIDA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS YEAR ENDED SEPTEMBER 30 1991 WITH COMPARATIVE TOTAL FIGURES FOR 1990 Water and Gas Solid Waste S U r at er y Sewer Utility Utility utility Cash Flows from Operating Activities: $24,742,066 9,419,268 11,214,59b 1, 987,004 Cash Received from Customers Cash Received from Other Funds (8,762,043) (4,879,006) 54,164,5178) ( Cash Payments to Suppliers Payments to Employees ((4,715,503)) 3 gg1,954 ((1,728,158) 1,301,835) 3,399,112 ?) 3,065,528 2216Cash 190,1 Cash Payments to Other Funds 70 418 11,803 58,7 Other Revenues Net Cash Provided (Used) by 7 Q53,044 1,522,072 644,157 1,436,457 Operating Activities Cash Flows from Noncapital Financing Activities: Operating Transfers In (1,078 (824,100) (589,310) (1,045,635) Operating Transfers Outs Contributions to Other Funds ,119) ( 49,843) (9,239) 310,709 Grant Revenue Insurance Proceeds 196,281 (104) Interest Paid (153,565) Loans from Other Funds, Net Net Cash Provided (Used) by (1,127,962) 8 (833 339 ) 235 885) _ _ — � � ii, 045,739} Noncapital Financing Activities _,_ Cash Flows from Capital and Related Financing Activities: Principal Payments on Debt 2 248,155) 5,034,8843 (98,879) (633,674) 82,444) 32,641)) Interest Paid Acquisition of Fixed Assets 16,167,531 (1,844,574) (341,828 (894,085) Proceeds from Sales of Assets Debt 7,479,975 Proceeds from Issuance of Cash De osited with Escrow Agent for (7 242 785 Bond Defeasance Payments of Bond Issue Costs (217,212; Payment on Advances from Other Funds Insurance Proceeds Received Capital Contributed by: 200,000 100,000 2,878,260 Other Funds Other Governmental Entities 1,794,054 127,568 1,775 Property Owners 467,485 Developers Net Cash Provided (Used) for Capital and Related Financing Activities (20 861,463) (2,555,374) 913) _ (356 ,,_._ 1,984,175 Cash Flows from Investing Activities: Purchase of Investment Securities (,348,100) 207,657 86,28E Interest on Investments 4 5 527 724} (210,059) (2,376,454) Loans to Other Funds, Net Cash Received on Receivables Proceeds from Sales and Maturities of 87 Investments 16,500,000 167,406 3,009 Interest Rebatable to U.S. Treasury Net Cash Provided (Used) in 14,464,991 (2,402) 89,382 12376,454} Investing Activities Net Increase (Decrease) in Cash and (71,390) (1,869,043) 140,741 (1,561) Cash Equivalents Cash and Cash Equivalents at 27 766,484 2,202,629 281,493 Beginning of Y ear $27,695,094 333,586 422,234 (1,561) Cash and Cash Equivalents at End of Year See accompanying notes to Financial Statements. Page 1 of 2 Toll Yacht Totals Causeway and Basin and Parking System Pier 60 Airpark 1991 1990 Bridge Marina 1,650,241 1,501,179 146,100 1,812,554 287,619 48,592 52,663,119 146,100 51,149,708 124,490 821,737 (354,4783 (124,414 (41,177) (19,542,371 (18,121,619 €256,236 223,903) €226,150 (1,1027,046) ((55,584 (17,732) (9,989,871 ((7,912,202 28 35,491 15,477 9,418 358 201,771 186,585 ¢ 822,451 193,772 (25,557) (4,697) (9,959) 12,031,740 14,136,901 S 81,060 21,000 102,060 114,443 (2,i80,705� (2,303,538 f2, 362, 6203 18,724 329,433 196,281 (3,306) 3,410) (34,373) 202,469 8,904 81,060 18,724 (2,363,597) 199,163 (5,307,575) 1, 844,550) 156,082 39,150 161,618 2,786,328 ((6,162,867 1,139,270 241,947 24,948 194,7733 6,242,673 (27,550 (6,524 (65,546) (25,378) (423,115) (19,796,131 (�7,884,181� 41,437 41,437 7,479,975 (7,242,785) (15,000) (15,000)) (15,000) 400,000 00,000 150,000 3,328,260 308,223 1,794,054 4,263,686 129,343 107,097 467,485 1,367,019 (25,579) (85,622) (380,500) 124,622 423,115) (22,579,769) (39,235,099) (1,023,100) (949,475) 117,049 (852,819) 27,149 (44,576) 326,555 (130,898) 9,907 (128,279) 215,130 5,123,017 (9,055,684) 6,135,874 (4,160,388) _ 1,437 1,437 1,725 16,500,087 23,735,000 170,415 484,021 (735,770) (15,990) 195,657 (118,372) 215,130 11,716,172 25,246,757 142,162 110,884 (2,573,997) 1,553 (18,781) (4,139,432) (1,695,991) 56,326 139,459 3,730,469 11,649 (34,388) 34,154,121 35,850,112 198,488 250,343 1,156,472 13,202 (53,169) 30,014,689 34,154,121 .ze, CITY OF CLEARWATER, FLORIDA ENTERPRISE FUNDS ASH FLOWS YEAR ENDED SEPTEMBERN30, TOTAL ONTINUED FOR 1990 Water and Gas Solid Waste Stormwater Sewer Utility Utility Utility Utility Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss) $ 5,130,642 1,196,356 197,755 1,383,481 Adjustments to Reconcile Operating Income 3(Loss) to Net Cash Provided (Used) by Operating Activities: Other Revenue from Nonoperating Section of Income Statement 70,478 11,803 58,718 Depreciation 2,439,671 472,439 284,662 475,382 Provision for Uncollectible Accounts Amortization 43,309 39,734 19,424 5,386 Miscellaneous Expense (4,785) Change in Assets and Liabilities: Decrease (Increase) in Accounts Receivable (115,548) (122,639) 62,219 Decrease (Increase) in Amount Due From (437,158) Other Governmental Entities 97,598 Decrease Increase in Inventory (616) Decrease Increase in Prepaid Expenses 589 (7,861 Increase DecreaseI in Accounts and 93I Contracts Payable 88,466 17,196 14,425 Increase Decrease in Deposits (300,639) (104,591) 3,594 Increase Decrease) in Accrued Payroll 3,879 19,728 2,429 9,366 Total Adjustments 2,322,402 325,716 446,402 52,976 Net Cash Provided (Used) by Operating Activities 3 7,453,044 1,522,072 644,157 1,436,457 Water and Sewer Utility Exchange of Noncash Properties: During the fiscal year, the City entered into an agreement e providing for the exchange of certain land located in Hillsborough County and owned by the ater and Sewer Utility Fund for a parcel of land located on Island Estates in Clearwater. The land owned by the City had a cost of $183,543 while the land being acquired by the City had an appraised value of $430,000. The only cash flow as current fiscal year. sociated with this transaction involved certain miscellaneous expenses of $4,785 incurred and paid by the City during the Stormwater Utility Noncash Capital Financing Activities: During the current fiscal year, the Stormwater Utility Fund was established. The fixed assets that comprise the stormwater management system acquired prior to the establishment of the fund as well as certain assets purchased by other funds in the current year, were transferred to the Stormwater Utility Fund during the current fiscal year and represent contributions from other City funds. These assets were transferred at cost less estimated depreciation to the date of establishment of the fund. Total capital contributed from other funds is $11,729,689 which consists of $2,878,260 in cash as reflected in this statement and $8,851,429 in net fixed assets. See accompanying notes to Financial Statements. dh Page 2 of 2 Totals Causeway Yacht sin Parking System Pier 60 Air ark P 1991 1990 and BridgeMarina and 116,824 (84,823) (84,441) (52,636) (38,484) 7,764,674 9,507,418 28 181,591 92,554 15,477 137,693 9,418 43,843 358 27,716 347871 4,517:972 311,075 3847,084 544,012 107,853 148,391 201 564 148,391 (4,785) 1,899 4,981 (93,334) (701,479) (9,970) (24,716) 72,882 (25,256) 81,820 2,000 6,570 3,743 (6,347 (6,347) (5,279) 8,445 (3,601) 451 (400,854) 306,887) 6,215 727 2,432 55 11,521 1 721 _) 53,849 23,614 705,627 278,595 58,884 47,939 28,525 4,267,066 4,629.483 822,451 193,772 25 557) 4 697) 9 959) 12,031,740 14 136,901 SUPPLEMENTAL SCHED6 _ Page 1 of 4 CITY OF CLEARWATER, FLORIDA CUMULATIVE SCHEDULE OF AUTHORIZATIONS AND EXPENDITURES FOR PROJECTS FUNDED BY ENTERPRISE FUND RESOURCES, CONTINUED YEAR ENDED SEPTEMBER 30, 1991 Expenditures Project Project Authorizations PROJECT Authori Prior Years Current Cumulative Net of NUMBER DESCRIPTION zations (Cumulative) Year Total Expenditures Water & Sewer General 2808 Revenue Public Svc. Complex $ 500,000 500,000 500,000 2819 4774 Office Mod. Aerial Photo 18,000 17,500 12,802 12,802 18,000 4,698 6210 Pump Station Monitoring 250,000 131,028 131,028 118,972 6254 6294 Northeast A.W.T. Plant Computer Reporting Systm 5,651 71,967 5,651 69,059 5,651 69,059 2,908 6335 6503 Parking Lot Improv. Utility Bldg. Renovation 30,000 4,612 20,826 5,729 4,612 26,555 (4,612) 3,445 6509 Heating Sys. Renovation 5,000 9,266 9,266 4 ,266 6510 Utility Aux Building 24,039 25,390 19 25,409 1,370 6511 CPU Cashiering 19,408 19,408 4,392 23,800 4,392 6512 Telepphone Upgrade 20,167 13,680 13,680 6,487 6617 WPC R & R - 87 656 (656) 6624 Sanitary Sewer Inter 1,944,599 1,389,233 9,654 1,398,887 545,712 6625 Line Relocation 636,532 172,295 219,326 391,621 244,911 6627 East AWT Plant 160,000 61,693 61,693 98,307 6629 Lift Station R & R 529,617 196,652 169,022 365,674 163,943 6630 Sanitary Sewer Int. 12,002 12,002 12,002 6631 WPC R & R 172,016 172,016 172,016 6632 Sanitary Sewer R & R 1,417,300 614,571 614,571 802,729 6633 Sanitary Sewer Rehab. 2,500,000 102,979 1,133,442 1,236,421 1,263,579 6634 Sanitary Utility Rel. 325,000 325,000 6636 6637 Water Cons. Reuse Progg. Marshall St Sewer Rep] 202,000 1,200,000 45,508 (43,508) 200,277 2,000 200,277 200,000 999,723 6638 6640 Sludge Treatment Facilty Rehab Pump Station ®42' 2,380,000 333,200 242,989 242,989 2,380,000 90,211 6641 Northeast Engn Generater 830,000 40,552 40,552 789,448 49,716 6642 Auto Continous Analyser 49,716 6646 East Plant Outfall 680,000 3,753 3,753 676,247 6703 System R & R 68,322 43,322 43,322 25,000 6704 Line Relocation 88 1,495,551 700,649 290,902 991,551 504,000 6706 6710 System Expansion Reservoir II Wells 139,864 308,114 69,864 56,526 95,744 69,864 152,270 70,000 155,844 6714 Standby Generator 103,097 93,405 9,692 103,097 6720 6722 Equip. Acq- Truck /Backhoe Line Relocation Maint 52,249 145,000 52,249 1,350 52,249 1,350 143,650 6727 Reverse Osmosis Pilot St. 65,000 1,701 1,701 63,299 6729 Eng. Fees - Various 71,000 26,826 24,400 51,226 19,774 6731 New Well Developement 330,000 330,000 6732 Elevated Storage Tanks 150,000 150,000 17,261,911 3,948,955 3,081,993 7,030,948 10,230,963 Contributions- Impact Fees 2808 Public Svc. ComPVex 150,000 150,000 150,000 6254 Northeast ANT Plant 618,717 1,072,215 (453,498) 618,717 6261 6262 E Lake Chautauqua Pump E Lake Chautauqua Inter 32,772 40,000 5,286 3,139 5,286 3,139 27,486 36,861 6625 6628 Line Relocation Sand Key Sub. Inter. 150,000 600,000 419 419 150,000 599,581 6630 6636 Sanitary Sewer Ext. - 89 Water Consery Reuse Prgm 600,000 145,000 90,242 750 99,366 90,992 99,366 509,008 45,634 6637 6706 Marshall St. Sewer Rep] System Expansion 1,000,000 759,170 494,145 125,405 619,550 1,000,000 139,620 6710 Reservoir II Wells 706,193 131,129 128,082 259,211 446,982 43,000 6731 New Well Developement 43,000 4,844,852 1,946,156 _ (99,476) 1,846,680 2,998,172 SUPPLEMENTAL SCHEOULE Page 2 of 4 CITY OF CLEARWATER, FLORIDA CUMULATIVE SCHEDULE OF AUTHORIZATIONS AND EXPENDITURES FOR PROJECTS FUNDED YEAR ENDED Y N SE PRISE ER FUND RESOURCES, COHTINUED E.P.A. Grants 6254 Northeast A.W.T. Plant 4,899,651 Other Municipalities Safety Harbor 6254 Northeast AWT Plant 421,441 Total Water & Sewer 32,549,605 Expenditures Revenue Parking Lot Improve Project Project PROJECT Authori NUMBER DESCRIPTION zations Water & Sewer, (continued) Met of Renewal 6294 & Replacement Computer Reporting System 15,000 6511 6624 CPU Cashiering Sanitary Sewer Inter 5,000 420,000 6625 Line Relocation 35,000 590,469 6631 6632 WPC R & R - 89 Sanitary Sewer R & R -89 1,152,512 6640 Rehab Pump Station 42 8,160 919,343 6703 6704 System R & R - 88 Line Relocation - 88 652,944 6705 6710 Meter Changeout Reservoir II Wells 396,848 1,474 6714 6721 Standby Generator System R & R- Maintenance 10,000 415,000 6722 6732 Line Relocation Maint. Elevated Storage Tanks 100,000 400,000 372,418 1,474 24,430 5,121,750 E.P.A. Grants 6254 Northeast A.W.T. Plant 4,899,651 Other Municipalities Safety Harbor 6254 Northeast AWT Plant 421,441 Total Water & Sewer 32,549,605 Expenditures Revenue Parking Lot Improve 11,274 470,413 Project 15,660 61662 461,114 4,612 9,299 Authorizations Prior Years Current Cumulative Met of Cumulative Year Total E�x enditures 538,155 468,193 15,000 170 15,000 336,293 420,000 Gas Buildin Renovation - Maint 420,000 35,000 41,027 165,880 355,758 206,907 529,103 383,562 628,160 173,345 51,721 35,704 1 822 714,300 23,651 166,373 115,528 880,673 139,179 38,670 513,765 282,548 89,870 372,418 1,474 24,430 1,474 2,285 96,542 2,285 320,336 7,715 223,794 100,000 6354 6355 21,429 21,429 378,571 1,898,968 1,014,836 2,913,804 2,207,946 4,899,651 9;683 4,899,651 4 7,662 10,160 421,441 6510 6511 421,441 8,318 13 115,171 3,997,353 17,112,524 15,437,081 Gas General 6335 Revenue Parking Lot Improve 11,274 470,413 6,662 445,454 15,660 61662 461,114 4,612 9,299 6339 6340 Additional Gas Lines Line Relocate -Cap 88 1,506,833 568,099 8070 286,839 2,50 184,820 353,335 6341 6342 Gas Main Extension -88 Gas System R &R -Cap 88 538,155 468,193 131,900 170 13!,900 18,600 336,293 6344 Gas Buildin Renovation - Maint 18,600 108,250 18,430 21,090 15,296 36,386 37,526 71,864 6348 6349 Line Relocation stem R & R Maint 51,721 35,704 1 822 100, 59 6350 Elec Monitor & Control Meter Change Out 100,000 196,500 134,083 62,258 196,341 3p 000 6352 6353 Gas Gas Heat Pumps Plan 30,000 30 000 30,000 48,590 6354 6355 Gas Marketing Hydraulic Pumps 48,590 15,000 17,059 2,330 19,389 (A, 389) (5,162)) 6503 6509 Utility Building Reno Heating System Renovatn 9;683 10,156 4 7,662 10,160 (487 6510 6511 Utilities Aux. CPU Cashiering System 8,318 4,302 2,533 1,030 5,332 2,53x 3,045 1,380 6512 Telephn System Upgrade 3913 , 1,585,204 388,159 1,973,363 1,6441630 3,617 ,993 Renewal 6342 And Replacement Gas System R &R -Cap 88 514,899 374 ggg 125,575 50,000 500,474 263,000 14,425 6349 System R & R - Maint 263,000 777 899 213,000 587,899 _ 175,575 763,474 14,425 4,395,892 2,1_ ;__103 e 563,734 2,736.837 1,659,055 Total Gas _73__ SUPPLEMENTAL SCHEUuLE Page 3 of 4 CITY OF CLEARWATER, FLORIDA CUMULATIVE SCHEDULE OF AUTHORIZATIONS AND EXPENDITURES FOR PROJECTS FUNDED BY ENTERPRISE FUND RESOURCES, CONTINUED YEAR ENDED SEPTEMBER 30 1991 Total Solid Waste 4,508,109 Stormwater General Revenues 2403 Stormwater Mgmt. Plan 2404 Unspec. Storm Damage 2409 Canterberry Hgts, Plan 2413 Forest Woods Drainage 2414 Jeffords Street 2492 Stevenson Creek Upgrade 2496 Strom Drainage R & R -89 2498 Misc. Ponding 2819 Office Mod. Total Stormwater Toll Causeway and Bridge Fund 3465 Bridge Crutch Bent Rep. 3468 Sand Key Bridge Replac. ey 3469 K Bridge R & R 89 3470 Bridges, Docks, &Seawalls 3474 Evaluation & Design Rockaway Total Toll Causeway and Bridge Fund 579,033 305,950 8,697 100,235 48,200 2,767,207 500,683 118,878 1,300 4,430,183 153,840 960,463 1,668,857 2,730 702 2,721,394 533,980 3,255,374 1,252,735 94,893 94,893 Expenditures 14,498 Project 291,452 Project 8,697 Authorizations 82,663 PROJECT Authori Prior Years Current Cumulative Net of NUMBER DESCRIPTION zations (Cumulative) Year Total Expenditures 4,976 4,976 113,902 Solid Waste 1,300 459,815 1,053,105 General Revenues 147,281 2819 Office Mod & Cntrl Countr 3,000 317,715 147,064 464,779 3,000 6424 Mini Transfer Station 433,695 59,885 59,885 373,810 6426 Facility R & R -88 272,152 141,307 47,633 188,940 83,212 6427 Resident Container Acq -88 943,996 758,819 129,718 888,537 55,459 6428 New Facility 1,054,000 782,248 30,002 812,250 241,750 6429 Comm. Container Acq - 88 849,567 592,672 121,452 714,124 135,443 6433 Recycling Program 845,358 356,297 201,643 557,940 287,418 12,948 6503 Utility Building Renov 22,771 7,944 1,879 9,823 3,533 53,967 6509 Heating System Renovation 57,500 3,533 6510 Utility Aux. 10,424 7,740 5 7,745 2,679 6511 CPU Cashiering System 9,626 6,896 1,648 8,544 1,082 6512 Telephone Sys Upgrade 6,020 4,053 4,053 1,967 Total Solid Waste 4,508,109 Stormwater General Revenues 2403 Stormwater Mgmt. Plan 2404 Unspec. Storm Damage 2409 Canterberry Hgts, Plan 2413 Forest Woods Drainage 2414 Jeffords Street 2492 Stevenson Creek Upgrade 2496 Strom Drainage R & R -89 2498 Misc. Ponding 2819 Office Mod. Total Stormwater Toll Causeway and Bridge Fund 3465 Bridge Crutch Bent Rep. 3468 Sand Key Bridge Replac. ey 3469 K Bridge R & R 89 3470 Bridges, Docks, &Seawalls 3474 Evaluation & Design Rockaway Total Toll Causeway and Bridge Fund 579,033 305,950 8,697 100,235 48,200 2,767,207 500,683 118,878 1,300 4,430,183 153,840 960,463 1,668,857 2,730 702 2,721,394 533,980 3,255,374 1,252,735 702 2,786,592 1,046,436 187,182 1,233,618 1,552,974 94,893 94,893 484,140 14,498 14,498 291,452 8,697 8,697 82,663 82,663 17,572 48,200 459,815 662,075 1,121,890 1,645,317 185,303 185,303 315,380 4,976 4,976 113,902 1,300 459,815 1,053,105 1,512,920 2,917,263 147,281 6,559 153,840 317,715 147,064 464,779 495,684 581,440 33,559 614,999 1,053,858 2,730 702 2,786,592 1,046,436 187,182 1,233,618 1,552,974 Pier 60 3471 Big Pier 60 R & R 89 221,628 10,544 38,082 48,626 173,002 Airpark 4752 Airpark Facilities 504,000 44,166 408,303 452,469 51,531 Total Enterprise Funds $50,679,143 20,174,967 6,892,477 27,067,444 23,611,699 S, �EMENTAL SCHEDULE Page 4 of 4 CITY OF CLEARWATER, FLORIDA CUMULATIVE SCHEDULE OF AUTHORIZATIONS AND EXPENDITURES FOR PROJECTS FUNDED BY ENTERPRISE FUND RESOURCES YEAR ENDED SEPTEMBER 30 1991 Expenditures Project Project Authorizations PROJECT Authori Prior Years Current Cumulative Net of NUMBER DESCRIPTION zations (Cumulative) Year Total Expenditures Marina Fund 3413 Utility Service Replac. 110,328 105,750 3,766 109,516 812 3429 Dock System Repplacement 43,740 35,130 8,414 43,544 196 3436 Marina Pile R & R 63,103 48,240 13,247 61,487 1,616 3443 Seminole Launch Dredging 186,363 182,371 2,074 184,445 1,918 3452 Main Term. Dock - Rebuild 148,260 148,260 148,260 3466 Boat Slips Dredge - Island Estates 40,000 2,130 500 2,630 37,370 3467 Serv. Station Fuel Tanks 29,934 29,934 29,934 3473 Marine Site Studies 73,086 7,960 7,424 15,384 57,702 3477 Marina Roof Replacement 47,825 47,825 3480 Marina Sidewalk Replce 20,066 20,066 Total Marina Fund 762,705 559,775 35,425 595,200 167,505 Parking System 2612 Street Light Equipment 15,000 10,374 (3,743) 6,631 8,369 2629 McKay /Marianne Park Lts 71,678 12,359 12,359 59,319 2630 Parking Lot Resurfacing 243,199 243,199 2631 Pier 60 Attendant Parking 31,801 21,830 9,971 31,801 2817 Jolley Trolley Replac. 35,391 35,391 3247 Sailing Center Parking Lot 50,000 4,192 4,192 45,808 3310 Cleveland St. Beaut. 4,908 3,538 3,538 1,370 478 Marina Parking Lot 68,452 61,355 61,355 7,097 Total Parking System 520,429 44,563 75,313 119,876 400,553 Pier 60 3471 Big Pier 60 R & R 89 221,628 10,544 38,082 48,626 173,002 Airpark 4752 Airpark Facilities 504,000 44,166 408,303 452,469 51,531 Total Enterprise Funds $50,679,143 20,174,967 6,892,477 27,067,444 23,611,699 SUPPLEMENTAL SCHEDULE CITY OF CLEARWATER, FLORIDA UTILITY SYSTEM CONSTRUCTION PROJECTS - REVENUE BONDS CUMULATIVE SCHEDULE OF PROJECT AUTHORIZATIONS AND EXPENDITURES YEAR ENDED SEPTEMBER 30, 1991 Expenditures Project Project PROJECT Authori NUMBER DESCRIPTION zations 6707 Water Main Contt. $12,835,190 Net of 6719 En9 Fees - Water Bonds 604,000 6724 Well Improve. and Water 1,028 125,593 6, 275,863 Treatment 897,716 6725 Subacqueous Main Replace 787,800 6730 Eval of Water System 80,000 6799 Water System Prelim Costs 30,000 76,948 Marshall Street: 19,325 6292 Anaerobic Digester 160,000 6626 AWT Plant 19,118,253 34,023 Northeast Area: 2,079,345 6254 Construction of 836,549 459,925 Treatment Plant 1,484,712 6201 AWT Plant 20,461,919 6627 Clearwater East ANT 2,018,544 16,161,480 Plant 16,661,948 6635 Peak Shaving Gen. Study 29,393 6638 Sludge Trmt. Fac. -Bond 73,052 6641 Northeast Engine Gen. 230,000 6699 Bond Issuance Costs 290,608 6336 Tarpon Springs Gas Ext. 1,625,819 6337 Gas System Completion 662,146 •6338 NE Project (Gas System) 357,419 6339 Additional Gas Lines" 171,810 6341 Main Extensions (Gas) 125,000 6346 Gas System. Equipment Acquisition 65,319 6347 Small Gas Mains, Connections & Meters 1,154,597 6351 New Gas Mains Ext. Expenditures Project Authorizations Prior Years Current Cumulative Net of (Cumulative) Year Total Expenditures 5,230 150,270 1,028 125,593 6, 275,863 6 328,137 644,106 96,907 741,013 156,703 84,348 662,461 746,809 40,991 76,948 76,948 3,052 19,325 19,325 10,675 125,977 125,977 34,023 16,806,406 2,079,345 18,885,751 232,502 836,549 459,925 1,296,474 188,238 17,907,274 2,429,412 20,336,686 125,233 14,142,936 2,018,544 16,161,480 500,468 23,467 5,926 80,602 29,393 80,602 (7,550) 194,104 194,104 35,896 268,765 863,493 499,721 268,765 1,363,214 21,843 262,605 323,810 225,284 549,094 113,052 357,419 109,987 357,419 109,987 61,823 44,178 44,178 80,822 65,319 1,129,324 and Services 1,499,937 1,051,108 $79,406,638 60,107,710 Fund Resources Unappropriated at September 30, 1991 Net Assets at September 30, 1991: Equity in Pooled Cash and Investments Less Accounts and Contracts Payable 65,319 25,273 1,154,597 477,833 _1,528,941 (29,004) 10,563,535 70,671,245 8,735,393 2,463,364 $ 11,198 757 $ I1,740,047 541,290 $ 11,198,757 APPENDIX C SUMMARY OF CERTAIN PROVISIONS OF THE SERIES 1993 ORDINANCE AND THE ORIGINAL ORDINANCE This Summary of Certain Provisions of the Series 1993 Ordinance and the Original Ordinanc6 w subject in all respects to the more complete information and definitions contained in Ordinance No. 5355 -93, enacted , 1993, as amended and supplemented (the "Series 1993 Ordinance "), and Ordinance No. 3674 -84, enacted August 2, 1984, as amended and supplemented (the "Original Ordinance "), (sometime collectively referred to herein as the "Ordinance ") and should not be considered to be a complete statement of the facts material to making any investment decision. DEFINITIONS "Accreted Value" shall mean, as of any date of computation with respect to any Capital Appreciation Bond, an amount equal to the principal amount of such Capital Appreciation Bond (the principal amount at its initial offering) plus the interest accrued on such Capital Appreciation Bond from the date of delivery to the original purchasers thereof to the Interest Payment Date next preceding the date of computation or the date of computation if an Interest Payment Date, such interest to accrue at a rate not exceeding the legal rate, compounded semi - annually, plus, with respect to matters related to the payment upon redemption or acceleration of the Capital Appreciation Bonds, if such date of computation shall not be an Interest Payment Date, a portion of the difference between the Accreted Value as of the immediately preceding Interest Payment Date and the Accreted Value as of the immediately succeeding Interest Payment Date, calculated based on the assumption that Accreted Value accrues during any semi -annual period in equal daily amounts on the basis of a 360 day year. "Act" shall mean Chapter 166, Part II, Florida Statutes, and other applicable provisions of law. "Additional Bonds" shall mean Bonds issued on a parity with the Parity Bonds and the 1993 Bonds under the Ordinance. "Amortization Installments" with respect to any Term Bonds of a series, shall mean an amount or amounts so designated which is or are established for the Term Bonds of such series, provided that (i) each such installment shall be deemed to be due on such interest or principal maturity date of each applicable year as is fixed by resolution of the Issuer and shall be a multiple of $5,000 principal amount (or $5,000 Maturity Amount, in the case of Capital Appreciation Term Bonds), and (ii) the aggregate of such installments for such series shall equal the aggregate principal amount (or Maturity Amount, in the case of Capital Appreciation Term Bonds) of Term Bonds of such series authenticated and delivered on original issuance. "Authorized Investments" shall mean any of the following if and to the extent the same are at the time legal for investment of muniijipal funds: (a) direct obligations of or obligations, the principal of and interest on which are unconditionally guaranteed by the United States of America; (b) bonds, debentures, notes or other evidence of indebtedness payable in cash issued by any of the following agencies whose obligations represent full faith and credit of the United States of America: the Export- Import Bank of the United States, the Federal Financing Banks, Farmers Home Administration, Maritime Administration, Public Housing Authority and the Government National Mortgage Association; (c) certificates of deposit properly secured at all times, by collateral security described in (a) and (b) above. Such agreements are only acceptable with commercial banks, savings and loan associations, and mutual savings banks; (d) the following investments fully insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation: (1) certificates of deposit, (2) savings accounts, (3) deposit accounts, or (4) depository receipts of a bank, savings and loan associations, and mutual savings banks. C -1 "Bondholder" shall mean a registered owner of a Bond as shown on the registration books of the Registrar. "Bond Service Requirement" for any Fiscal Year, as applied to the Bonds of any series, shall mean the j sum of: (1) the amount required to pay the interest becoming due on the Bonds of such series during the Fiscal Year, except to the extent that such interest shall have been provided by payments into the Sinking Fund out of bond proceeds for a specific period of time or by payments of investment income into the Sinking Fund from the Bond Service Account or any subaccounts therein. (2) the amount required to pay the principal of Serial Bonds of such series maturing in such Fiscal Year. (3) the Amortization Installments for the maturities of Term Bonds of such series for such Fiscal Year. (4) in the event the Issuer has purchased or entered into an agreement to purchase Federal Securities or Authorized Investments from moneys in the Bond Service Account, then the income received or to be received on such Federal Securities or Authorized Investments from the date of acquisition thereof to the date of maturity thereof, unless otherwise designated for other purposes, shall be taken into consideration in calculating the payments which will be required to be made into the Sinking Fund and the Bond Service Account therein. Whenever such income is applied in calculating a Bond Service Requirement for any purpose, such income shall also be excluded in the computation of Gross Revenues for such purpose. "Bonds" shall mean the Parity Bonds, the Water and Sewer Refunding Revenue Bonds, Series 1993, authorized in the Ordinance to be issued, and any Additional Bonds issued in accordance with the provisions thereof. "1993 Bonds" shall mean the Water and Sewer Refunding Revenue Bonds, Series 1993, authorized in the Series 1993 Ordinance. "Capital Appreciation Bonds" shall mean Bonds the interest on which is payable only at maturity or redemption, as determined by subsequent resolution. "Capital Appreciation Term Bonds" shall mean Capital Appreciation Bonds of a series all of which shall be stated to mature on one date, which shall be subject to retirement by operation of the Bond Amortization t Account, and the interest on which is payable only at maturity or redemption. "Consulting Engineers" shall mean such qualified and recognized consulting engineers, having a favorable repute for skill and experience in the construction and operation of such facilities as the System, at the time retained by the Issuer to perform the acts and carry out the duties as provided in the Ordinance for Consulting Engineers. "Cost of Operation and Maintenance" of the System shall mean the current expenses, paid or accrued, of operation, maintenance and repair of the System as calculated in accordance with sound accounting practice, i, but shall not include any reserves for renewals and replacements, for extraordinary repairs or any allowance for depreciation. "County" shall mean Pinellas County, Florida, a political subdivision of the State. ('•2 "Escrow Deposit Agreement" means that certain Escrow Deposit Agreement to be entered into by and between the Issuer and a bank or trust company to be selected and named by the Issuer prior to the delivery of the 1993 Bonds, in substantially the form attached to the Ordinance as Exhibit A. "Federal Securities" shall mean only direct obligations of, or obligations fully guaranteed as to principal and interest by, the United States of America. "Fiscal Year" shall mean the period commencing on October 1 of each year and ending on the succeeding September 30, or such other period as is at the time prescribed by law. "Gross Revenues" shall mean all income or earnings, including any income from the investment of funds as provided in the Ordinance, derived by the Issuer from the operation of the System. "Increased Capacity Requirements" means any increased demand upon or usage of the capital facilities of the System resulting from additional connections thereto, or from substantial changes to or in the use of properties connected thereto. "Issuer" shall mean the City of Clearwater, Florida. "Maturity Amount" means the amount payable upon the stated maturity of a. Capital Appreciation Bond equal to the principal amount thereof plus all accrued interest thereon from the date of issue to the date of maturity. "Maximum Bond Service Requirement" shall mean, as of any particular date of calculation, the greatest amount of aggregate Bond Service Requirements for the then current or any future Fiscal Year. "Net Revenues" of the System shall mean the Gross Revenues after deduction of the Cost of Operation and Maintenance. "Original Ordinance" shall mean Ordinance No. 3674 -84, as amended and supplemented, of the Issuer, authorizing the Parity Bonds and the Refunded Bonds. "Parity Bonds" shall mean, after the refunding of the Refunded Bonds, the Issuer's outstanding Water and Sewer Revenue Bonds, Series 1984, and Water and Sewer Revenue Bonds, Series 1988. "Payment Date" shall mean, with respect to payment to the Bondholders of principal or interest on the Bonds, or with respect to the mandatory amortization of Term Bonds, the date upon which payment of such principal, interest or Amortization Installment is required to be made to the Paying Agent. "Pledged Revenues" shall mean the Net Revenues. "Put Bonds" shall mean the Term Bonds so designated by resolution or ordinance of the Issuer at or prior to the time the Bonds of any series are sold. "Refunded Bonds" shall mean the Issuer's outstanding Water and Sewer Revenue Bonds, Series 1988A, and the Water and Sewer Revenue Bonds, Series 1988B. "Registrar" shall mean the paying agent for the Bonds, as Bond Registrar, or such other person, firm or corporation as may thereafter be from time to time designated by the Issuer as the Registrar for the Bonds, C-3 "Serial Bonds" shall mean any Bonds for the payment of the principal of which, at the maturity thereof, no Amortization Installments are required to be made prior to the twelve -month period immediately preceding the stated date of maturity of such Serial Bonds. "System" shall mean the complete combined and consolidated water system and sanitary sewer system of the Issuer now owned by the Issuer, or hereafter constructed or acquired by the Issuer, together with all lands or interests therein, including plants, buildings, machinery, franchises, pipes, mains, fixtures, equipment and all property, real or personal, tangible or intangible, now or hereafter owned or used in connection therewith, and including any undivided or partial ownership interests therein. "Term Bonds" shall mean the Bonds of a series all of which shall be stated to mature on one date and which shall be subject to retirement by operation of the Bond Amortization Account. AUTHORIZATION OF REFUNDING OF REFUNDED BONDS The Ordinance authorized the refunding of the outstanding Refunded Bonds. ORDINANCE TO CONSTITUTE CONTRACT In consideration of the acceptance of the Bonds by the Bondholders from time to time, the Ordinance shall be deemed to be and shall constitute a contract between the Issuer and such Bondholders. The covenants and agreements set forth in the Ordinance to be performed by the Issuer shall be for the equal benefit, protection and security of the legal Bondholders of any and all of such Bonds, all of which shall be of equal rank and without preference, priority or distinction of any of the Bonds over any other thereof, except as expressly provided therein and in the Ordinance. AUTHORIZATION OF BONDS The Ordinance authorized Bonds of the Issuer to be known as "Water and Sewer Refunding Revenue Bonds, Series 1993" to be issued in the aggregate original principal amount of not exceeding $57,000,000 which may mature at a higher value to include the Maturity Amount of any Capital Appreciation Bonds. DESCRIPTION OF 1993 BONDS The 1993 Bonds, except Capital Appreciation Bonds, shall be dated as of a date or dates to be fixed by subsequent resolution of the Issuer, but not later than their date of delivery, may be Serial Bonds, Term Bonds, or a combination thereof; shall be designated "R- " and numbered consecutively from one upward in order of authentication; shall be in such denominations, shall bear interest at such rate or rates not exceeding the maximum legal rate allowable by law to be payable at such times, and shall mature either annualy'or semi- annually on such dates and in such years and amounts, all as shall be determined by subsequent resolution of the Issuer. The 1993 Bonds shall bear interest from their date or from the most recent interest payment date to which interest has been paid, until payment of the principal sum. The 1993 Bonds shall be issued in fully registered form, payable as to principal and premium, if any, upon presentation and surrender thereof on the date fixed for maturity or redemption thereof at the corporate trust office of the paying agent hereafter named. Interest on each fully registered 19193 Bond (except the Capital Appreciation Bonds) shall be paid by check or draft (in the case of holders of $1,x10,000 or more of Series 1993 Bonds, such payment shall be made by wire transfer if so requested by such Holder, provided that such Holder pays for the cost of such wire transfer) mailed to the person in whose name the Bond is registered, at his or her address as it appears on the Bond Register maintained by the Bond Registrar, at the close of business on the 15th day of the month (whether or not a business day) next preceding the interest Payment Date (the "Record Date "), irrespective of any transfer of each Bond subsequent to such Record Date and prior to such interest CA Payment Date, unless the Issuer shall be in default in payment of interest due on such interest Payment Date. In the event of any such default, such defaulted interest shall be payable to the person in whose name such Bond is registered at the close of business on a special record date for the payment of defaulted interest as established by notice mailed by the Registrar to the registered owner of the 1593 Bonds (except the Capital Appreciation Bonds) not less than fifteen days preceding such special record date. Such notice shall be mailed to the person in whose name such Bond is registered at the close of business on the fifth (5th) day preceding the date of mailing. All payments shall be made in accordance with and pursuant to the terms of the Ordinance and the 1993 Bonds and shall be payable in any coin or currency of the United States of America which, at the time of payment is legal tender for the payment of public or private debts. The Capital Appreciation Bonds, if any, shall be dated as of a date or dates to be fixed by subsequent resolution of the Issuer, but not later than their date of delivery; shall be designated "CA- " and numbered from 1 upward in order of authentication; shall mature on such dates; and the principal amounts thereof shall accrete at the approximate annual yield (subject to rounding the Accreted Values), all as set forth by subsequent resolution of the Issuer. No 1993 Bond shall be valid or become obligatory for any purpose or be entitled to any security or benefit under the Ordinance until the certificate of authentication endorsed on the Bond shall have been duly signed by the Bond Registrar. If the date for payment of the principal of, premium, if any, or interest on the 1593 Bonds shall be a Saturday, Sunday, legal holiday or a day on which the banking institutions in the city where the corporate trust office of the paying agent is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not a Saturday, Sunday or legal holiday or a day on which such banking institutions are authorized to close, and payment on such date shall have the same force and effect as if made on the nominal date of payment. The 1993 Bonds (except the Capital Appreciation Bonds) may be issued or exchanged for Bonds in coupon form, payable to bearer, In such form, with such attributes and upon such conditions as the Issuer may provide by supplemental resolutions, upon receipt of an opinion from a nationally recognized bond counsel that such issuance or exchange will not cause interest on the Bonds to be includable in gross income of the holder for federal income tax purposes. EXECUTION OF 1993 BONDS The 1993 Bonds shall be executed in the name of the Issuer by the Mayor- Commissioner and City Manager and attested by the City Clerk, and approved as to form, sufficiency and correctness by the City Attorney, either manually or with his facsimile signature, and the official seal of the Issuer or a facsimile thereof shall be affixed thereto or reproduced thereon. The facsimile signature of such officers may be imprinted or reproduced on the 1993 Bonds. The Certificate of Authentication of the Bond Registrar shall appear on the 1993 Bonds, and no bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under the Ordinance unless such certificate shall have been duly executed on such 1993 Bond. The authorized signature for the Bond Registrar shall be either manual or facsimile; provided, however, that at least one of the signatures appearing on the 1993 Bonds shall at all times be a manual signature. In case any officer whose signature shall appear on any 1993 Bonds shall cease to be such officer before the delivery of such 1993 Bonds, such signature or facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. Any 1993 Bonds may be signed and sealed on behalf of the Issuer by such person who at the actual time of the execution of such 1993 Bonds shall hold the proper office with the issuer, although at the date of enactment of the Ordinance such person may not have held such office or may not have been so authorized. C-5 NEGOTIABILITY Subject to the provisions of the Ordinance respecting registration and transfer, the 1993 Bonds shall be and shall have all the qualities and incidents of negotiable instruments under the laws of the State of Florida, and each successive a ulder, in accepting any of the 1993 Bonds, shall be conclusively deemed to have agreed that the 1993 Bonds shall be and have all of such qualities and incidents of negotiable instruments under the Uniform Commercial Code - Investment Securities of the State of Florida. REGISTRATION, EXCHANGE AND TRANSFER There shall be a Bond Registrar for the 1993 Bonds which may be the Issuer or a designated bank or trust company located within or without the State of Florida. The Bond Registrar shall maintain the registration books of the Issuer and be responsible for the transfer and exchange of the 1993 Bonds. The Issuer shall, prior to the proposed date of delivery of the Bonds, by resolution designate the Bond Registrar and Paying Agent. The Bond Registrar shall maintain the books for the registration of the transfer and exchange of the 1993 Bonds in compliance with the Florida Registered Public Obligations Act and the system of registration as established by the Issuer pursuant thereto. Bonds may be transferred upon the registration books, upon delivery to the Registrar, together with written instructions as to the details of the transfer of such 1993 Bonds, along with the social security number or federal employer identification number of such transferee and, if such transferee is a trust, the name and social security or federal employer identification numbers of the settlor and beneficiaries of the trust, the date of the trust and the name of the trustee. No transfer of any 1993 Bond shall be effective until entered on the registration books maintained by the Bond Registrar. Upon surrender for transfer or exchange of any 1993 Bond, the Issuer shall execute and the Bond Registrar shall authenticate and deliver in the name of the registered owner or the transferee or transferees, as the case may be, a new fully registered 1993 Bond or 1993 Bonds of authorized denominations of the same maturity and interest rate for the aggregate principal amount which the registered owner is entitled to receive at the earliest practicable time in accordance with the provisions of the Ordinance. The Issuer or the Bond Registrar may charge the owner of such 1993 Bond for every such transfer or exchange an amount sufficient to reimburse them for their reasonable fees and for any tax, fee, or other governmental charge required to be paid with respect to such transfer, and may require that such charge be paid before any such new 1993 Bond shall be delivered. All 1993 Bonds presented for transfer, exchange, redemption or payment (if so required by the Bond Registrar), shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in form and with guaranty of signature satisfactory to the Bond Registrar, duly executed by the registered holder or by his duly authorized attorney in fact or legal representative. All 1993 Bonds delivered upon transfer or exchange shall bear interest from the preceding interest payment date so that neither gain nor loss in interest shall result from the transfer or exchange. New 1993 Bonds delivered upon any transfer or exchange shall be valid obligations of the Issuer, evidencing the same debt as the 1993 Bond surrendered, shall be secured by the Ordinance and shall be entitled to all of the security and the benefits of the Ordinance to the same extent as the 1993 Bonds surrendered. The Issuer and the Bond Registrar may treat the registered owner of any 1993 Bond as the absolute owner thereof for all purposes, whether or not such 1993 Bonds shall be overdue, and shall not be bound by any notice to the contrary. C -G Notwithstanding the foregoing provisions of this section, the Issuer reserves the right, on or prior to the delivery of the 1993 Bonds to amend or modify the foregoing provisions relating to the registration of the 1993 Bonds by resolution or ordinance in order to comply with all applicable laws, rules, and regulations of the United States and /or the State of Florida relating thereto. In addition, pursuant to a resolution adopted prior to the issuance of the Series 1993 Bonds, the Issuer may establish a book -entry-only system of registration for the Series 1993 Bonds, the provisions of which shall be deemed to modify any inconsistent provisions of the Ordinance. 1993 BONDS MUTILATED, DESTROYED, STOLEN OR LOST In case any 1993 Bond shall become mutilated, or be destroyed, stolen or lost, the Issuer may in its discretion issue and deliver a new 1.993 Bond of like tenor as the 1993 Bond so mutilated, destroyed, stolen or lost, in exchange and substitution for such mutilated 1993 Bond upon surrender and cancellation of such mutilated Bond or in lieu of and substitution for the Bond destroyed, stolen or lost, and upon the holder furnishing the Issuer proof of his ownership thereof and satisfactory indemnity and complying with such other reasonable regulations and conditions as the Issuer may prescribe and paying such expenses as the Issuer may incur. All 1993 Bonds so surrendered shall be canceled by the Registrar for the 1993 Bonds. If any of the 1993 Bonds shall have matured or be about to mature, instead of issuing a substitute 1993 Bond, the Issuer may pay the same, upon being indemnified as aforesaid, and if such 1993 Bonds be lost, stolen or destroyed, without sur- render thereof. Any such duplicate 1943 Bonds issued pursuant to this section shall constitute original, additional contractual obligations on the part of the Issuer whether or not the lost, stolen or destroyed 1993 Bonds be at any time found by anyone, and such duplicate 1993 Bonds shall be entitled to equal and proportionate benefits and rights as to lien on the source and security for payment from the funds, as pledged in the Ordinance, to the same extent as all other 1943 Bonds issued under the Ordinance. PROVISIONS FOR REDEMPTION The 1993 Bonds shall be redeemable as provided by subsequent resolution of the Issuer. 1993 Bonds in denominations greater than an authorized denomination (or authorized Maturity A-mount in the case of Capital Appreciation Bonds) shall be deemed to be an equivalent number of 1993 Bonds in the denomination of an authorized denomination or Maturity Amount. If a 1993 Bond is of a denomination or Maturity Amount larger than an authorized denomination or Maturity Amount, a portion of such 1943 Bond may be redeemed, in the amount of an authorized denomination or Maturity Amount or integral multiples thereof. Notice of such redemption, identifying the 1993 Bonds or portions thereof called for redemption (i) shall be filed with the paying agents and any Registrar; and (ii) shall be mailed by the Registrar, first -class mail, postage prepaid, to all registered owners of the 1993 Bonds to be redeemed not more than sixty (60) days and not less than thirty (30) days prior to the date fixed for redemption at their addresses as they appear on the registration books to be maintained in accordance with the provisions of the Ordinance. Failure to give such notice by mailing to any owner of 1993 Bonds, or any defect therein, shall not affect the validity of any proceeding for the redemption of other Bonds. Notice having been mailed and filed in the manner and under the conditions hereinabove provided, the 1993 Bonds or portions of 1993 Bonds so called for redemption shall, on the redemption date designated in such notice, become and be due and payable at the redemption price provided for redemption of such 1993 Bonds or portions of 1993 Bonds on such date. On the date so designated for redemption, notice having been mailed and filed and moneys for payment of the redemption price being held in separate accounts in trust for the holders of the 1993 Bonds or portions thereof to be redeemed, all as provided in the Ordinance, interest on the 1993 Bonds or portions of 1993 Bonds so called for redemption shall cease to accrue, such 1993 Bonds and por- tions of 1993 Bonds shall cease to be entitled to any lien, benefit or security under the Ordinance, and the C -7 holders or Registered Owners of such 1993 Bonds or portions of 1993 Bonds, shall have no rights in respect thereof, except the right to receive payment of the redemption price thereof. Upon surrender of any 1993 Bond for redemption in part only, the Issuer shall issue and deliver to the registered owner thereof, the costs of which shall be paid by the registered owner, a new 1993 Bond or 1993 Bonds of authorized denominations or Maturity Amounts in aggregate principal amount equal to the unredeemed portion surrendered. In addition to the foregoing notice, further notice shall be given by the Issuer as set out below, but no defect in said further notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as above prescribed. (1) Each further notice of redemption given under the Ordinance shall contain the information required above for an official notice of redemption plus (i) the CUSIP numbers of all 1993 Bonds being redeemed; (ii) the date of issue of the 1993 Bonds as originally issued; (iii) the rate of interest borne by each Bond being redeemed; (iv) the maturity date of each Bond being redeemed; and (v) any other descriptive information needed to identify accurately the 1993 Bonds being redeemed. (2) Each further notice of redemption shall be sent at least 35 days before the redemption date by registered or certified mail or overnight delivery service to all registered securities depositories then in the business of holding substantial amounts of obligations of types similar to the type of which the 1993 Bonds consist (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 Philadelphia Depository Trust Company of Philadelphia, Pennsylvania) and to one or more national information services that disseminates notices of redemption of obligations such as the 1993 Bonds. (3) Each such further notice shall be published one time in the Bond Buyer, of New York, New York or, if such publication is impractical or unlikely to reach a substantial number of the Holders of the Bonds, in some other financial newspaper or journal which regularly carries notices of redemption of obligations similar to the Bonds, such publication to be made at least 30 days prior to the date fixed for redemption. BONDS NOT DEBT OF ISSUER The Bonds shall not be or constitute general indebtedness of the Issuer within the meaning of any constitutional or statutory provision or limitation, but shall be payable solely from and secured by a prior lien upon and pledge of the Pledged Revenues provided in the Ordinance. No Bondholder shall ever have the right to compel the exercise of the ad valorem tang power of the Issuer or taxation in any form of any real property therein to pay the Bonds or the interest thereon or be entitled to payment of such principal and interest from any other funds of the Issuer except from the Pledged Revenues in the manner provided in the Ordinance. PLEDGED REVENUES Until payment has been provided for as permitted in the Ordinance, the payment of the principal of and interest on the Bonds shall be secured forthwith equally and ratably by an irrevocable lien on the Pledged Revenues prior and superior to all other liens or encumbrances on such Pledged Revenues and the Issuer does by the Ordinance 'irrevocably pledge such Pledged Revenues to the payment of the principal of and interest on the Bonds, the reserves therefor, and for all other required payments. The Pledged Revenues shall immediately be subject to the lien of this pledge without any physical delivery thereof or further act, and the lien of this pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the Issuer. All funds and accounts created pursuant to the Ordinance shall be held by the Finance C -8 Director (or such other officer of the Issuer as shall be approved by the City Commission) as trust funds for payment of the Bonds. COVENANTS OF THE ISSUER Until all principal of and interest on the Bonds shall have been paid or provided for as permitted in the Ordinance, the Issuer covenants with the Bondholders as follows: A. REVENUE FUND. The entire Gross Revenues shall upon receipt thereof be deposited in the Revenue Fund created and established by the Original Ordinance. Such Revenue Fund shall constitute a trust fund for the purposes provided in the Ordinance and shall be kept separate and distinct from all other funds of the Issuer and used only for the purposes and in the manner provided in the Ordinance. B. DISPOSITION OF REVENUES. All funds at any time remaining on deposit in the Revenue Fund shall be disposed of on or before the twentieth day of each month, commencing in the month immediately following the delivery of the 1993 Bonds, only in the following manner and in the following order of priority: (1) Funds shall first be used for deposit into the Operation and Maintenance Fund, which was established by the Original Ordinance, of such sums as are necessary for the Cost of Operation and Maintenance, for the next ensuing month. (2) From the moneys remaining in the Revenue Fund, the Issuer shall next deposit into the Sinking Fund created by the Original Ordinance, such sums as will be sufficient to pay (a) one -sixth (1/6) of all interest becoming due on the Bonds on the next semi -annual interest payment date; (b) commencing in the first month which is twelve (12) months or six (6) months prior to the first annual or semi -annual maturity date, respectively, of any Serial Bonds, one - twelfth (1/12) or one -sixth (1/6), respectively, of the amount of Serial Bonds which will become due and payable on the next annual or semiannual principal maturity date, respectively, and (c) one - twelfth (1/12) of the Amortization Installment required to be made on the next annual payment date or one -sixth (1/6) of the Amortization Installment required to be made on the next semi - annual payment date into a "Bond Amortization Account ", created and established in the Sinking Fund by the Original Ordinance. Such payments shall be credited to a separate special account for each series of Term Bonds outstanding, and if there shall be more than one stated maturity for Term Bonds of a series, then into a separate special account in the Sinking Fund for each such separate maturity of Term Bonds. The funds and investments in each such separate account shall be pledged solely to the payment of principal of the Term Bonds of the series or maturity within a series for which it is established and shall not be available for payment, purchase or redemption of Term Bonds of any other series or within a series, or for transfer to the Sinking Fund to make up any deficiencies in required payments therein. The Amortization Installments may be due either annually or semiannually, but in any event, the required payments as set forth above shall be made monthly commencing in the first month which is six (6) months or twelve (12) months, as the case may be, prior to the date on which the Amortization Installment is required to be made pursuant to (c) above. Upon the sale of any series of Term Bonds, the Issuer shall by resolution, establish the amounts and maturities of such Amortization Installments for each series, and if there shall be more than one maturity of Term Bonds within a series, the Amortization Installments for the Term Bonds of each maturity. In the event the moneys deposited for retirement of a maturity of Term Bonds are required to be invested, in the manner provided below, the Amortization Installments may be stated in terms of either the principal amount of the investments to be purchased on, or the cumulative amounts of the principal amount of investments required to have been purchased by, the payment date of such Amortization Installment. C -9 __;V Moneys on deposit in each of the separate special accounts in the Bond Amortization Account shall be used for the open market purchase or the redemption of Term Bonds of the series or maturity of Term Bonds within a series for which such separate special account is established or may remain in said separate special account and be invested until the stated date of maturity of the Term Bonds. The resolution establishing the Amortization Installments for any series or maturity of Term Bonds may limit the use of moneys to any one or more of the uses set forth in the preceding sentence and may specify the type or types of investments permitted under the Ordinance to be purchased. (3) Moneys remaining in the Revenue Fund shall next be applied by the Issuer to maintain a Reserve Account, which Reserve Account was created and established by the Original Ordinance, in a sum equal to and sufficient to pay the Maximum Bond Service Requirement on all outstanding Bonds becoming due in any ensuing Fiscal Year, all or a portion of which sum maybe initially provided from the proceeds of the sale of the Bonds and /or other moneys of th ft e Issuer. The Issuer shall thereafter deposit into said Reserve Account an amount equal to one tile (1/12) of twenty per cent (20 %) of the difference between the amount, if any, so deposited upon the delivery of the Bonds and the amount of the Maximum Bond Service Requirement on all outstanding Bonds becoming due in any ensuing Fiscal Year. No further payments shall be required to be made into such Reserve Account when there has been deposited therein and as long as there shall remain on deposit therein a sum equal to the Maximum Bond Service Requirement on all outstanding Bonds becoming due in any ensuing Fish Year. Any withdrawals from the Reserve Account shall be subsequently restored from the first moneys available in the Revenue Fund after all required current payments into the Sinking Fund and into the Reserve Account, including all deficiencies for prior payments, have been made in full. Moneys in the Reserve Account shall be used only for the purpose of the payment of maturing principal (including Amortization Installments) of or interest on the Bonds when the moneys in the Sinking Fund are insufficient therefor, and for no other purpose. Upon the issuance by the Issuer of any Additional Bonds under the terms, limitations and conditions provided in the Ordinance and the Original Ordinance, the payments into the Reserve Account shall be increased so that the amount on deposit therein shall be equal to the Maximum Bond Service Requirement on all Bonds outstanding and to be outstanding. Whenever the amount on deposit in the Reserve Account exceeds the Maximum Bond Service Requirement on all Bonds then outstanding, the excess may be withdrawn and deposited into the Sinking Fund. The Issuer shall not be required to make any further payments into the Sinking Fund or into the Reserve Account when the aggregate amount of moneys in the Sinking Fund and the Reserve Account are at least equal to the aggregate principal amount of Bonds then outstanding, plus the amount of interest then due or thereafter to become due on the Bonds then outstanding. Notwithstanding the foregoing provisions, in lieu of the required deposits of Revenues into the Reserve Account, the Issuer may cause to be deposited into the Reserve Account a surety bond or an insurance policy issued by a reputable and recognized insurer for the benefit of the Bondholders in an amount equal to the difference between the Maximum Bond Service Requirement and the sums then on deposit in the Reserve Account, if any, which surety bond or insurance policy shall be payable (upon the giving of notice as required thereunder) on any interest payment date on which a deficiency exists which cannot be cured by funds in any other account held pursuant to the Ordinance and the Original Ordinance and available for such purpose. The insurer providing such surety bond or insurance policy shall be an insurer whose municipal bond insurance policies insuring the payment, when due, of the principal of and interest on municipal bond issues results in such issues being rated in the highest rating C -10 1 r category by Standard & Poor's Corporation or Moody's Investors Service, Inc., or their successors. If a disbursement is made from a surety bond or an insurance policy provided pursuant to this paragraph, the Issuer shall be obligated to either reinstate the maximum limits of such surety bond or insurance f policy immediately following such disbursement or to deposit into the Reserve Account, as provided in this paragraph for restoration of withdrawals from the Reserve Account, funds in the amount of the disbursement made under such policy, or a combination of such alternatives. (4) The Issuer shall next apply and deposit the moneys in the Revenue Fund into the Renewal and Replacement Fund created by the Original Ordinance. The Issuer shall deposit into such Renewal and Replacement Fund an amount equal to one- twelfth (1/12) of rive per centum (5 %) of the Gross Revenues of the System for the previous Fiscal Year, or such other amount as is certified as necessary for the purposes of the Renewal and Replacement Fund by the Consulting Engineer and as approved by the City Commission. The moneys in said Renewal and Replacement Fund shall be used only for the purpose of paying the cost of extensions, enlargements or additions to or the replacement of capital assets of the System and emergency repairs thereto. Such moneys on deposit in such Fund shall also be used to supplement the Reserve Account if necessary in order to prevent a default in the payment of the principal of and interest on the Bonds. (5) To the extent junior lien bonds are issued and outstanding (which subordinated bonds the Issuer reserves the right to issue), the Issuer shall next apply moneys in the Revenue Fund to the payment of principal of, redemption premium, if any, and interest on such subordinated debt of the Issuer. (6) The balance of any moneys remaining in the Revenue Fund after the above required payments have been made may either be deposited into either the Renewal and Replacement Fund or the Sinking Fund, or may be used for the purchase or redemption of Bonds, or may be used by the Issuer for any lawful purpose of the Issuer.; C. INVESTMENT OF FUNDS. The Operation and Maintenance Fund, the Sinking Fund, the Reserve Account, the Renewal and Replacement Fund, the Revenue Fund, the Construction Fund, and any other special funds in the Ordinance and in the Original Ordinance established and created shalt constitute trust funds for the purposes provided in the Ordinance for such funds. All such funds shall be continuously secured in the same manner as state and municipal deposits are required to be secured by the laws of the State of Florida. Moneys on deposit in any of such funds and accounts may be invested and reinvested in Authorized Investments. Investments made with moneys in the Construction Fund, the Revenue Fund, the Operation and Maintenance Fund, and the Sinking Fund (except the Bond Amortization Account therein), must mature not later than the date that such moneys will be needed. Investments made with moneys in the accounts in the Bond Amortization Account, in the Reserve Account and in the Renewal and Replacement Fund must mature, in the case of the accounts in the Bond Amortization Account not later than the stated date of maturity of the Term Bonds to be retired from the sub - accounts in the Bond Amortization Account from which the investment is made, in the case of the Reserve Account not later than the final maturity of any Bonds then outstanding, and in the case of the Renewal and Replacement Fund, not later than such date as shall be determined by the Issuer. Any and all income received by the Issuer from all such investments shall be deposited into the Revenue Fund, except however, that investment income earned in the Bond Amortization Account may be retained therein or deposited into the Sinking Fund and used to pay maturing principal of and interest on the Bonds, at the option of the Issuer. The cash required to be accounted for in each of the foregoing funds and accounts established in the Ordinance may be deposited in a single bank account, and funds allocated to the various accounts established in the Ordinance may be invested in a common investment pool, provided that adequate accounting records are C -il maintained to reflect and control the restricted allocation of the cash on deposit therein and such investments for the various purposes of such funds and accounts as provided in the Ordinance. The designation and establishment of the various funds in and by the Ordinance shall not be construed to require the establishment of any completely independent, self - balancing funds as such term is commonly defined and used in governmental accounting, but rather is intended solely to constitute an earmarking of certain revenues and assets of the System for certain purposes and to establish certain priorities for application of such revenues and assets as provided in the Ordinance. D. OPERATION AND MAINTENANCE. The Issuer will maintain the System and all parts thereof in good condition and will operate the same in an efficient and economical manner, making such expenditures for equipment and for renewals, repairs and replacements as may be proper for the economical operation and maintenance thereof. E. RATE ORDINANCE. The Issuer has enacted or will enact a rate ordinance and thereby will fix, establish and maintain such rates and will collect such fees, rentals and other charges for the services and facilities of the System and revise the same from time to time whenever necessary, as will always provide Gross Revenues in each Fiscal Year sufficient to pay the Cost of Operation and Maintenance of the System in such Fiscal Year, one hundred fifteen per centum (115 %) of the Bond Service Requirement becoming due in such Fiscal Year on the outstanding Parity Bonds, on the outstanding 1993 Bonds and on all outstanding Additional Bonds, plus one hundred per centum (100 %) of all reserve and other payments required to be made pursuant to the Ordinance and the Original Ordinance. Such rates, fees, rentals and other charges shall not be reduced so as to be insufficient to provide Gross Revenues for such purposes. F. BOOKS AND RECORDS. The Issuer shall keep books and records of the System, which books and records shall be kept separate and apart from all other books, records and accounts of the Issuer, and i Bondholders shall have the right at all reasonable times to inspect all records, accounts and data of the Issuer relating thereto. G. ANNUAL AUDIT. The Issuer shall also, at least once a year, cause the books, records and accounts relating to the System to be properly audited by a recognized independent firm of certified public accountants and shall make generally available the report of such audits to any Bondholder. 1 H. NO MORTGAGE OR SALE OF THE SYSTEM. The Issuer irrevocably covenants, binds and obligates itself not to sell, lease, encumber or in any manner dispose of the System as a whole until all of the 1 Bonds shall have been paid in full as to both principal and interest, or payment shall have been duly provided for under the Ordinance. The foregoing provision notwithstanding, the Issuer may sell or dispose of, for fair market value, any properties or parts of the System which the Consulting Engineer shall certify in writing are not necessary for the continued operation of the System and that the sale or disposal of which will not adversely affect the Gross Revenues to be derived from the System to such an extent that the Issuer will fail to comply with the covenants contained in the Ordinance and the Original Ordinance. The proceeds derived from any sale or disposal of any properties or parts of the System as provided for in the above paragraph shall, in the discretion of the Issuer, be (1) deposited in the Renewal and Replacement Fund and used exclusively for the purpose of paying the cost of extensions, enlargements or additions to, or the replacement of capital assets of the System and for unusual or extraordinary repairs thereto, or for the construction or acquisition of additions, extensions and improvements to the System, or (2) for the purchase or retirement of the Bonds then outstanding. However, if the Consulting Engineer certifies that proceeds are necessary for the purposes stated in part (1) above, such proceeds shall remain in the Renewal and Replacement C•12 .d !1h Fund until such certified requirements are satisfied, and the proceeds shall not be used for any other purpose allowed by the ordinance or the Original Ordinance. 1. INSURANCE, The Issuer will make adequate provision to maintain fire and windstorm insurance on all buildings and structures and properties of the System which are subject to loss through fire or windstorm, public liability insurance, and other insurance of such types and in such amounts as are normally carried in the operation of similar public and private utility systems within the State of Florida. Any such insurance shall be placed with nationally recognized and reputable insurers or under State approved and authorized self insurance programs or any combination of both and shall be carried for the benefit of the Bondholders. All monies received for losses under any such insurance, except public liability, are pledged in the Ordinance by the Issuer as security for the Bonds, until and unless such proceeds are used to remedy the loss or damage for which such proceeds are received, either by repairing the property damaged or replacing the property destroyed within ninety (90) days from the receipt of such proceeds. J. NO FREE SERVICE. The Issuer will not render or cause to be rendered any free services of any nature by its System, nor will any preferential rates be established for users of the same class. This covenant shall not prevent individual contracts with other governmental entities for the wholesale delivery of services of the System. The Issuer, including its departments, agencies and instrumentalities, shall avail itself of the facilities or services provided by the System or any part thereof, and the same rates, fees or charges applicable to other customers receiving like services under similar circumstances shall be charged to the Issuer and any such department, agency or instrumentality. Such charges shall be paid as they accrue, and the Issuer shall transfer from its general funds sufficient sums to pay such charges. The revenues so received shall be deemed to be Gross Revenues derived from the operation of the System and shall be deposited and accounted for in the same manner as other Gross Revenues derived from such operation of the System. R. MANDATORY CONNECTION. To the full extent permitted by law the Issuer will adopt and keep in force and effect an ordinance requiring that all improved premises with respect to which water or sewer services from the System are available shall connect such premises to the System and shall obtain available water and sewer services only from the System. L. ENFORCEMENT OF COLLECTIONS. The Issuer will diligently enforce and collect all fees, rentals or other charges for the services and facilities of the System and take all steps, actions and proceedings for the enforcement and collection of such fees, rentals or other charges which shall became delinquent to the full extent permitted or authorized by the Act and by the laws of the State of Florida. The Issuer will, under reasonable rules and regulations, shut off and discontinue the supplying of the water service and the sewer service of the System for the nonpayment of fees, rentals or other charges for said water service or said sewer service, or either of them, and will not restore said water service or sewer service, or either of them, until all delinquent charges for both water service and sewer service, together with interest and reasonable penalties, have been paid in full. M. REMEDIES. Any Bondholder, or any trustee acting for the Bondholders may, either at law or in equity, by suit, action, mandamus or other proceedings in any court of competent jurisdiction, protect and enforce any and all rights, including the right to the appointment of a receiver, existing under the laws of the State of Florida, or in the Ordinance e required or by any applicable statutes be performed by the Issuer orrby any officer thereof. Nothing in the Ordinance, however, shall be construed to grant to any Bondholders any lien on any real property of tine Issuer. C -13 N. CONSULTING ENGINEERS. The Issuer will retain an independent consulting engineer or engineering firm having a favorable reputation for skill and experience for the design, construction and operation of systems of comparable size and character as the System, for the purpose of providing the Issuer competent engineering counsel in connection with the making of the capital improvements. The Issuer may, however, employ additional engineers at any time with relation to specific engineering and operation problems arising in connection with the System. O. CITY MANAGER REPORTS. On an annual basis, within 45 days of the receipt of the annual audit of the System provided for above, the Issuer shall cause to be prepared by the City Manager a report or survey of the System with respect to the management of the properties thereof, the sufficiency of the rates and charges for services, the proper maintenance of the properties of the System and the necessity for capital improvements and recommendations therefor. Such a report or survey shall also show any failure of the Issuer to perform or comply with the covenants in the Ordinance contained, including those contained in subsection I above. In the event that such annual report reflects that the rates and charges for services are insufficient to protect the rights of the Bondholders, then the Issuer shall take such steps as are required by law to raise the rates and charges for services. In the event that the annual report indicated that the rates and charges for services should be increased substantially pro rata as to all classes of service, then, to the full extent permitted es and charges for services without the necessity for notice or public hearing. by law, the Issuer shall raise the rat P. NO COMPETING SYSTEM. To the full extent permitted by law the Issuer will not grant or cause, consent to, or allow the granting of any franchise or permit to any person, firm, corporation or body or agency or instrumentality whatsoever for the furnishing of water or sanitary sewerage services to or within the service area of the System, if determined by the Consulting Engineers to be materially competitive with the System and adversely affecting the Gross Revenues derived from the operation thereof. j Q. ISSUANCE OF OTHER OBLIGATIONS. The Issuer will not issue any other obligations, except under the conditions and in the manner provided in the Ordinance, payable from the Pledged Revenues, nor voluntarily create or cause to be created any debt, lien, pledge, assignment, encumbrance or other charge having priority to or being on a parity with the lien of the Parity Bonds and the 1413 Bonds and the interest thereon upon the Pledged Revenues. Any other obligations issued by the Issuer �n addition to the Parity Bonds, the 1943 Bonds or Additional Bonds provided for in subsection R below, payable frozn the Pledged Revenues shall contain an express statement that such obligations are junior and subordinate in all respects to the Bonds as to lien on and source and security for payment from the Pledged Revenues. R. ISSUANCE OF ADDITIONAL BONDS. Additional Bonds, payable on a parity from the Pledged Revenues with the Parity Bonds and the 1993 Bonds, shall be issued only for the purposes of refunding a part of the outstanding Bonds or financing the cost of extensions, additions and improvements to the System and for the acquisition and construction of, and extensions, additions and improvements to, sewer and /or water systems which are to be consolidated with the System and operated as a single combined utility. Additional Bonds, other than for refunding purposes, shall be issued only upon compliance with all of the following conditions: (1) There shall have been obtained and filed with the City Clerk of the Issuer a certificate of a qualified and recognized firm of independent certified public accountants stating: (a) that the books and records of the Issuer relative to the System have been audited by such firm; (b) the amount of the Net Revenues derived for the Fiscal Year preceding the date of issuance of the proposed Additional Bonds or for any 12 consecutive months during the 18 months immediately preceding the date of the issuance of the Additional Bonds with respect to which such certificate is made, adjusted as herein below provided; (c) that the aggregate amount of such Net Revenues, as adjusted, for the period for which such Net Revenues are being certified is equal to not less than 120% of the Maximum Bond Service Requirement becoming due in any Fiscal Year thereafter on (i) all Bonds then outstanding, and (ii) on the Additional Bonds with respect to which such certificate Is made. C -14 (2) Upon recommendation of the Consulting Engineers, the Net Revenues certified pursuant to (b) in the previous paragraph may be adjusted for purposes of this Subsection by including: (a) 100% of the additional Net Revenues which in the opinion of the Consulting Engineer would have been derived by the Issuer from rate increases adopted before the Additional Bonds are issued, if such rate increases had been implemented before the commencement of the period for which such Net Revenues are being certified, and (b) 100% of the additional Net Revenues estimated by the Consulting Engineer to be derived during the first full twelve month period after the facilities of the System are extended, enlarged, improved or added to with the proceeds of the Additional Bonds with respect to which such certificate is made. The adjustments described in Section 16(R)(2)(b) may only be made if the Net Revenues as adjusted under Section 16(R)(2)(a) for the period for which such Net Revenues are being certified equals at least 1.00 times the Maximum Bond Service Requirement becoming due in any Fiscal Year thereafter on (i) all Bonds then outstanding; and (ii) on the Additional Bonds with respect to which such certificate is made. (3) Each ordinance or resolution authorizing the issuance of Additional Bonds will recite that all of the covenants contained in the Ordinance will be applicable to such Additional Bonds. (4) The Issuer shall not be in default in performing any of the covenants and obligations assumed under the Ordinance, and all payments required in the Ordinance to have been made into the accounts and funds, as provided under the Ordinance, shall have been made to the full extent required. S. MAINTENANCE OF SYS'T'EM. The Issuer will maintain the System in good condition and continuously operate the same in an efficient manner and at a reasonable cost. T. APPLICATION OF REFUNDED BONDS FUNDS AND ACCOUNTS. A pro rata portion of the moneys in the funds and accounts created by the ordinances which authorized the issuance of the Refunded Bonds may, in the discretion of the Issuer, be transferred to and deposited in the like funds and accounts created by the Ordinance or may be used by the Issuer, in whole or in part, to effect the refunding of the Refunded Bonds, created by by evidenced by a Ordinance mayibe held by mtorelthan directing transfer and the discretion eof the funds suerr.. d accounts APPLICATION OF PROCEEDS OF THE 1993 BONDS All moneys received from the sale of the 1993 Bonds shall be deposited by the Issuer in a special account in a bank or trust company and applied by the Issuer as follows: (A) All accrued interest shall be deposited in the Sinking Fund and used solely for the purpose of paying interest on the 1993 Bonds. (B) A sum which, together with, at the discretion of the Issuer, the pro rata portions of the moneys on deposit in the Reserve Account securing the Refunded Bonds, will be equal to the Maximum Bond Service Requirement on the 1993 Bonds and the Parity Bonds becoming due in any Fiscal Year, may be deposited into the Reserve Account, at the option of the Issuer. (C) To the extent not reimbursed or paid by the original purchaser of the 1993 Bonds, the Issuer shall pay all costs and expenses in connection with the preparation, issuance and sale of the 1993 Bonds. (D) A sum specified in the Escrow Deposit Agreement which, together with the other funds described in the Escrow Deposit Agreement to be deposited in escrow, will be sufficient to pay, as of any date of calculation, the principal of, interest on, premium, if any, and other costs and obligations incurred with respect to the Refunded Bonds as the same shall become due or are redeemed, as C -15 AS& Oft R provided by subsequent resolution of the Issuer and to pay the expenses specified in the Escrow Deposit Agreement, shall be deposited into the Escrow Account established in the Escrow Deposit Agreement, } in the amounts sufficient for such purposes. Such funds shall be kept separate and apart from all other funds of the Issuer and the moneys on deposit therein shall be withdrawn, used and applied by the Issuer solely for the purposes set forth I in the Ordinance and in the Escrow Deposit Agreement. Simultaneously with the delivery of the 1993 Bonds to the purchaser thereof, the Issuer shall enter into an Escrow Deposit Agreement, in substantially the form attached to the Ordinance, with a bank or trust company approved by the Issuer. Such Escrow Deposit Agreement shall provide for the deposit of sums into the Escrow Account and for the investment of such moneys in appropriate Federal Securities so as to produce sufficient funds to make all of the payments described in the first paragraph ; of this Subsection. At the time of execution of the Escrow Deposit Agreement, the Issuer shall furnish to the Escrow Holder named therein appropriate documentation to demonstrate that the sums being deposited and the investments to be made will be sufficient for such purposes. TAX COMPLIANCE A. In General. The Issuer at all times while the 1993 Bonds and the interest thereon are outstanding will comply with all applicable provisions of the Internal Revenue Code of 1986, as amended (the "Code ") and any valid and applicable rules and regulations promulgated thereunder (the "Regulations ") in order to ensure that the interest on the 1993 Bonds will be excluded from gross income for federal income tax purposes. B. Rebate. (1) The Issuer shall either make or cause an independent firm of certified public accountants or tax compliance firm to make and promptly provide to the Issuer the rebate calculations required by the Code and Regulations, on which the Issuer may conclusively rely in taking action under this Section. The Issuer shall make deposits to and disbursements from separate accounts to the extent required by the Code and Regulations and shall otherwise maintain full and complete accounting records of receipts and disbursements of, and investment purchases and sales allocated to, the "gross proceeds" subject to the rebate requirements of the Code and Regulations. The requirements of this Subsection may be superseded or amended by new calculations accompanied by an opinion of bond counsel addressed to the Issuer to the effect that the use of the new calculations are in compliance with the Code and Regulations and will not cause the interest on the 1993 Bonds to become included in gross income for Federal income tax purposes. (2) The Issuer shall either make or cause an independent firm of certified public accountants or tax compliance firm to annually make and promptly forward to the Issuer after the end of the Bond Year and within the time required by the Code and the Regulations the computation of the rebate deposit required by the Code, on which the Issuer may conclusively rely in taking action under this Subsection. Records of the determinations required by this Subsection and the Code and Regulations shall be retained by the Issuer until six (6) years after the 1993 Bonds are no longer outstanding. (3) Within the time required by the Code and Regulations following the end of the fifth Bond Year, as defined in the Code, and every five (5) years thereafter, the Issuer shall pay to the United States of America ninety percent (90010) of the rebate amounts calculated as of such payment date, as shown by the computations of the Issuer or the certified public accountants or tax compliance firm, and one hundred percent (100 %) of the earnings on such rebate amounts as of such payment date. Not later than sixty (60) days after the final retirement of each applicable series of 1993 Bonds, the Issuer shall pay to the United States of America one hundred percent (1000.'a) of the balance remaining of the rebate amount and the earnings thereon. Each payment required to be paid to the United States of America pursuant to this Subsection shall be filed with the Internal Revenue Service Center, C -16 Philadelphia, Pennsylvania 19255. Each payment shall be accompanied by a copy of the Form 8038 originally filed with respect to each applicable series of 1993 Bonds and a statement summarizing the determination of the amount to be paid to the United States of America. SALE OF THE 1993 BONDS The 1993 Bonds shall be issued and sold in such manner and at such price or prices consistent with the provisions of the Act and the requirements of the Ordinance, all at one time or in installments, from time to time, as the Issuer shall hereafter determine by resolution; provided that the first installment shall be sold and delivered only in an aggregate amount sufficient to effect the complete refunding program described in the Ordinance; provided, further, that no installment after the first installment shall be sold unless, at the time of sale, the Issuer complies with all of the requirements of Section 16 R of the Ordinance treating such installment then being sold as if it constituted Additional Bonds under the Ordinance. CAPITAL. APPRECIATION BONDS For the purposes of (i) receiving payment of the redemption price if a Capital Appreciation Bond is redeemed prior to maturity, or (ii) receiving payment of a Capital Appreciation Bond if the principal of all Bonds is declared immediately due and payable under the provisions of the Ordinance, or (iii) computing the amount of the Maximum Bond Service Requirement and of Bonds held by the registered owner of a Capital Appreciation Bond in giving to the Issuer or the Trustee any notice, consent, request or demand pursuant to the Ordinance for any purpose whatsoever, the principal amount of a Capital Appreciation Bond shall be deemed to be its Accreted Value. MODIFICATION OR AMENDMENT No material modification or amendment of the Ordinance or of any ordinance or resolution amendatory of the Ordinance or supplemental to the Ordinance may be made without the consent in writing of (i) the insuror under any insurance policy of the Issuer then in force which insures against nonpayment of principal of and redemption premium, if applicable, and interest on, the Bonds, and (ii) the Registered Owners of two- thirds or more in the principal amount of the Bonds then outstanding; providing, however, that no modification or amendment shall permit a change in the maturity of the Bonds or reduction in the rate of interest thereon or in the amount of the principal obligation thereof or affecting the promise of the Issuer to pay the principal of and interest on the Bonds as the same shall become due from the Pledged Revenues or reduce the percentage of Registered Owners required to consent to any material modification or amendment of the Ordinance without the consent in writing of any insuror and of all Registered Owners; provided further, however, that no such modification or amendment shall allow or permit any acceleration of the payment of principal of or interest on the Bonds upon any default in the payment thereof whether or not the insuror and Registered Owners consent thereto. DEFEASANCE AND SUBROGATION (a) If, at any time, the Issuer shall have paid, or shall have made provision for payment of, the principal, interest and redemption premiums, if any, with respect to the Bonds, then, and in that event, the pledge of and Hen on the Pledged Revenues and all covenants in the Ordinance in favor of the Bondholders shall be no longer in effect. For purposes of the preceding sentence, deposit of Federal Securities or bank certificates of deposit fully secured as to principal and interest by Federal Securities (or deposit of any other securities or investments which may be authorized by law from time to time and sufficient under such law to effect such a defeasance) in irrevocable trust with a banking institution or trust company, for the sole benefit of the Bondholders, in respect to which such Federal Securities or certificates of deposit, the principal and interest received will be sufficient to make timely payment of the principal of, interest on, redemption premiums, if any, expenses and any other obligations of the Issuer incurred with respect to the outstanding Bonds, shall be considered "provision C -17 Aft Ark for payment ". Nothing in the Ordinance shall be deemed to require the Issuer to call any of the outstanding Bonds for redemption prior to maturity pursuant to any applicable optional redemption provisions, or to impair the discretion of the Issuer in determining whether to exercise any such option for early redemption. (b) In the event any of the principal and redemption premium, if applicable, and interest due on the Bonds shall be paid by an insuror pursuant to an insurance policy which insures against non - payment thereof, the pledge of the Pledged Revenues and all covenants, agreements and other obligations of the Issuer to the Registered Owners to whom or for the benefit of whom the insuror has made such payments, shall continue to exist and the insuror shall be subrogated to the rights of such Registered Owners to the full extent of such payments. PUBLICATION OF NOTICE OF REFUNDING Within thirty (30) days after the delivery of the 1993 Bonds, the Issuer shall cause to be published one time in a newspaper published and of general circulation in the City of Clearwater, Florida, and a financial journal published or circulated in the Borough of Manhattan, City and State of New York, a notice of the advance refunding of the Refunded Bonds. SEVERABILITY OF INVALID PROVISIONS If any one or more of the covenants, agreements or provisions contained in the Ordinance shall be held contrary to any express provisions of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separable from the remaining covenants, agreements or provisions and shall in no way affect the validity of any of the other provisions of the Ordinance or of the Bonds issued under the Ordinance. SUPPLEMENTAL RESOLUTIONS The Issuer may, by supplemental resolution fix the remaining fiscal details of the Bonds and set forth any provisions required in order to obtain municipal bond insurance. Pursuant to such supplemental resolution the Issuer may make such covenants as it may determine to be appropriate with any financial institution that shall agree to insure the Series 1993 Bonds. Such covenants shall be binding on the Issuer and the holders of the Series 1993 Bonds the same as if such covenants were set forth in full in the Ordinance. REPEALING CLAUSE All ordinances or resolutions or parts thereof of the Issuer in conflict with the provisions contained in the Ordinance are, to the extent of such conflict, superseded and repealed by the Ordinance. r C•I£3 Appendix D IlITI'ORMATION ABOUT AMBAC INDEMNITY COIpORATION The information set forth below was furnished by AMBAC Indemnity Corporation. No representation is made herein as to the accuracy or adequacy of the information or as to the absence of material adverse changes in the information subsequent to the date of this Official Statement. AMBAC Indemnity Corporation ( "AIV93AC ") is a Wisconsin - domiciled stock insurance corporation, regulated by the Office of the Commissioner of Insurance of the State of Wisin Commonwealth and licensed to do business in 50 states, th consin e District of Columbia and the Puerto Rico with admitted assets of approximately $1,600,000,000 (unaudited) and statutory capital of approximately $926,500,000 (unaudited) as of December 31, 1992. Statutory capital consists of AMBAC's policyholders' surplus and statutory contingency reserve. AMBAC is a wholly owned subsidiary of AMBAC Inc., a 100% publicly -held company. Mood 's Investors Service, Inc. and Standard & Poor's Corporation have both assigned a triple -A claims- paying ability to AM13AC. Copies of AMBAC's financial statements prepared in accordance with statutory accounting standards are available from AMBAC. The address of AMBAC's administrative offices and its telephone number are One State Street Plaza, 17th Floor, New York, New York, 10004 and (212) 668 -0340. AMBAC has entered into pro rata reinsurance agreements under which a percentage of the insurance underwritten pursuant to certain municipal bond insurance programs of AMBAC has been and will be assumed by a number of foreign and domestic unaffiliated reinsurers. AM 3AC has obtained a ruling from the Internal Revenue Service to the effect that the insuring of an obligation by AMBAC 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 under policy provisions substantially identical to those contained in its municipal bond insurance policy shall be treated for federal income tax purposes in the same manner as if such payments were made by the issuer of the bonds. AMBAC makes no representation regarding the Series 1993 Fonds or the advisability of investing in the Series 1993 Fonds and makes no representation regarding, nor has it participated in the preparation of, the Official Statement other than the information suhpliCd by AMBAC and presented under the heading "Municipal Fond Insurance" and in this Appendix D to the Official Statement. D1 [This page intentionally left blank] U APPENDIX E Upon delivery of the Series 1993 Bonds in definitive form, Bryant, Miller and Olive, P.A., Bond Counsel, proposes to render its final approving opinion in substantially the following form: [Date of Delivery of Series 1993 Bonds] City Commission City of Clearwater Clearwater, Florida CITY OF CLEARWATER, FLORIDA WATER AND SEWER REFUNDING REVENUE BONDS, SERIES 1993 Ladies and Gentlemen: We have acted as bond counsel in connection with the issuance by the City of Clearwater, Florida (the "Issuer "), of its $ Water and Sewer Refunding Revenue Bonds, Series 1993 (the "Series 1993 Bonds "), pursuant to the Constitution and laws of the State of Florida, Chapter 166, Part II, Florida Statutes, and other applicable provisions of law, Ordinance No. 367484, enacted by the City Commission of the Issuer on August 2, 1984, as amended and supplemented (the "Original Ordinance ") and Ordinance No. 5118 -91, enacted by the City Commission of the Issuer on August 15, 1991, as amended and supplemented (the "Series 1993 Ordinance" and together with the Original Ordinance, the "Ordinance "). Any capitalized undefined terms used herein shall have the meaning set forth in the Ordinance. As to questions of fact material to our opinion, we have relied upon representations of the Issuer contained in the Ordinance and in the certified proceedings and other certifications of public officials furnished to us, without undertaking to verify the same by independent investigation. We have not undertaken an independent audit, examination, investigation or inspection of such matters and have relied solely on the facts, estimates and circumstances described in such proceedings and certifications. We have assumed the genuineness of signatures on all documents and instruments, the authenticity of documents submitted as originals and the conformity to originals of documents submitted as copies. We have not been engaged or undertaken to review the accuracy, completeness or sufficiency of any offering material relating to the Series 1993 Bonds. This opinion should not be construed as offering material, an offering circular, prospectus or official statement and is not intended in any way to be a disclosure statement used in connection with the sale or delivery of the Series 1993 Bonds. Furthermore, we are not passing on the accuracy or sufficiency of any CUSIP numbers appearing on the Series 1.993 Bonds. In addition, we have not been engaged to and, therefore, express no opinion as to compliance by the Issuer or the underwriter with any federal or state statute, regulation or ruling with respect to the sale and distribution of the Series 1993 Bonds. In rendering this opinion, we have examined and relied upon the opinion of even date herewith of M. A. Galbraith, Jr., Esquire, Counsel to the Issuer, as to the due creation and valid existence of the Issuer, the due enactment of the Ordinance, the due authorization, execution and delivery of the Series 1993 Bonds and the compliance by the Issuer with all conditions precedent to the issuance of the Series 1993 Bonds. Pursuant to the terms, conditions and limitations contained in the Ordinance, the Issuer has reserved the right to issue obligations in the future which shall have a Yen on the Net Revenues equal to that of the Series 1993 Bonds. E -1 IN The Series 1993 Bonds do not constitute a general obligation or indebtedness of the Issuer within the 1 meaning of any constitutional, statutory or other limitation of indebtedness and the holders thereof shall form er have the right to compel the exercise of any ad valorem taxing power of the Issuer or taxation in .,i any real or personal property for the payment of the principal of or interest on the Series 1993 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 tax laws of the United States of America. Based on our examination, we are of the opinion, as of the date of delivery of and payment for the Series 1993 Bonds, as follows: 1. The Ordinance has been duly enacted by the Issuer and constitutes a valid and binding obligation of the Issuer enforceable upon the Issuer in accordance with its terms. 2. The Series 1993 Bonds have been duly authorized, executed and delivered by the sotand from he and binding special obligations of the Issuer enforceable in accordance with their terms, payable Y sources provided therefor in the Ordinance. 3. The Internal Revenue Code of 1986, as amended (the "Code "), establishes certain requirements which must be met subsequent to the issuance m delivery for purposes of federal income taxation. Non- compliance 1993 Bonds be and remain excluded i may cause interest ries 1993 Bonds, regardless of the date uon which such neon- compliance occurs or is ascertained. issuance of the Se The Issuer has covenanted in the Ordinance to comply with such requirements in order to maintain the exclusion from federal gross income of the interest on the Series 1993 Bonds. Subject to compliance by the Issuer with the aforementioned covenants, (a) interest on the Series 1993 Bonds is excluded from gross income for preference for purposes of income e federal taxation, and alter native sum tax imposed on Bonds is not an item of tai p individuals and corporations; however, with respect to corporations (as defined for federal e of co putting the such interest is taken into account in determining adjusted current earnings purpose alternative minimum tax imposed on such corporations. We express no opinion regarding other federal tax consequences arising with respect to the Series 1993 Bonds. 4. The Series 1993 Bonds are exempt from intangible taxes imposed pursuant to Chapter 199, Florida Statutes. In rendering the opinions set forth above, we are relying upon the arithmetical accuracy or cenam computations prepared by Smith Barney, Harris Upham & Co. Incorporated and verified by__._,_.—_- -- -• It is to be understood that the rights of the owners of the Series 1993 Bonds and the enforceability thereof dme be subject se of the exercise powers ofthe State of Florida and of the constitutional power of the the valid United States of America and to bankruptcy, insolvency, reorganization, moratorium and other similar aws affecting creditors' rights heretofore or hereafter enacted. Our opinions expressed herein are predicated upon present law, facts and circumstances, and we assume no affirmative obligation to update the opinions expressed herein if such laws, facts or circumstances change after the date hereof. Very truly yours, BRYANT, MILLER AND OLIVE, P.A. E -2 4Municipal Bond Insurance Policy aim ®ra. Issuer. Bonds: s APPMIX F AMBAC Indetri orporation clo CT Corporation Systems 41 Cast ekdflin Sr., Madison, Wisconsin 53703 Administrative Office: One State Street Plaza, New York, NY 10004 Telephone. (212) 668.0340 Policy Number: Premtum: AMBAC Indemnity Corporation (AMBAC) A Wisconsin Stock Insurance Company in consideration of the payment of the premium and subject tt the terms of this Policy, hereby agrees to pay t United States Trusc Company of New fork, as trustee, or its successor (the "insurance Trustee "), for the benefit of Bon Iders t t portion of the prin- cipal of and interest on the above - described debt obligations (the 'Bonds ") which shall become Due f ay b all be unpaid by reason of Nonpayment by the Issuer. AMBAC will make such payments to the Insurance Trustee within one ( 1) business da • ng no 'fi do A AC of Nonpay- ment. Upon a Bondholder's presentation and surrender to the Insurance Trustee of suc u aid ds purten or coupons, on- canceled and in bearer form and free of any adverse claim, the Insurance Trust Cc bu t e B d ider the face amount of principal and interest which is then Due for Payment but is unpaid. Upon suc isb se en AM s 1 become the owner of the surrendered Bonds and coupons and shall be fully subrogated to all of it • But let rig is av nt. In cases where the Bonds are issuable only in a form whereby prinof p, b eb ter I ndholders or their assigns, the Insurance Trustee shall disburse principal to a Bondholder as aft 'd I o r e at and surrender to the Insurance Trustee of the unpaid Bond, uncanceled and free of any adverse claim, c c er i ins on of assignment, in form satisfactory to the Insurance Trustee, duly executed by the Bondholder or tk 's if a o ed representative, so as to permit ownership of such Bond to be registered in the name of AMBAC or its to -e n sus vii e c onds are issuable only in a form whereby interest is payable to registered Bondholders or their assi its, ch Insu ante 1 sr c sl disburse mteresr to a Bondholder as aforesaid only upon presentation to the Insurance Trustee of p a the laima , th r • on entitled to the payment of interest on the Bond and delivery to the Insurance Trustee of an in t of m meat i fort i satisfactory to the Insurance Trustee, duly executed by the claimant Bondholder or such Bondholder' of autl 'ze up a e, transferring t; AMBAC all rights under such Bond to receive the interest in respect of which the - u , ce -me , ade. AMBAC shall lie subrogated to all the Bondholders rights to payment on registered Bonds t c ext t f t insc c disbursements so made. In the event the trustee or yi ag tt r e n acts notice that any payment of principal of or interest on a Bond which has become Due for Paym is c co a o Colder by or on behalf of the Issuer of the Bonds has been deemed a preferential transfer and rherer re verc fr its registe ed owner pursuant to the United States Bankruptcy Code in accordance with a final, nonappealabie Ord r r a co I f ml rent iurisdicrion, such registered uwnei will be entitled to payment from AMBAC to the extent of such recovery - s tent (u re of otherwise available As used herein, the on h der means any person other than the Issuer who. at the time of Nonpayment, is the owner of a Bond or of a coupon apperrai ond. As used herein, "Due for Payment when referring to the principal of Bonds, is when the stated maturity date or a ma edemption date for the application of it required sinking fund installment has been reached and does nor refer co any earlier date on which payment is due by reason of call for redemption (other than by application of required sinking fund installments), acceleration or other advancement of maturity; and, when referring to interest on the Bonds, is when the stated dace for payment of interest has been reached. As used herein, "Nonpayment" means the failure of the Issuer to have provided sufficient funds to the paying agent for payment in full of all principal Of and inavrest on the Bonds which are Due for Payment. This Policy is noncancelable. The premium un this Policy is not refin dal le for any reason, including payment of the Bonds prior to maturity. This Policy does not insure against loss of any prepaynivor or other acceleration payment which at any time may become due in respect of any Bond, other than at the sole option of AMBAC;, nor against any risk other than Nonpayment. In witness whereof, AMBAC has caused this Policy t, he afftxc•d with a faoirnile of its Orl Faw seal and to be signed by irs duly authorized officers in facsimile to become effective as its original Seal and signatures and binding upon AMBAC. by virtue of the counter- signature of its duly authorized representative rs: • j &4- /President Secretary If '�" -- Effective Date. Authorized Representative I'NITED STATES TRITST COMPANY OF NEW YORK acknowletigc% that it has agreed to perform the duties of Insurance Trustee under this Policy sormrmbixait,aar' Authorized r Officer� AMBAC Inde i Corporation EVEMMAM c/o CT Corpor_.,on Systems 44 East Mifflin Street Madison,' Wisconsin 53703 Administrative Office: One State Street Plaza Endorsement New York, New York 10004 Policy issued to: Attached to and forming part of Effective Date of Endorsement: The insurance provided by this policy is not covered by the Florida Insu u ty s ciation. Nothing herein contained shall be hel v , a er, aive e te ny of the terms, conditions, provisions, agreements or limitations of the above mentioned i th tI n b e ted. Yn Witness a orTi has ca d its Corporate Seal to be hereto affixed and these presents to be signed by its duly authori d Ice si He to become effective as its original seal and signatures and binding on the Company by virtue of cou er nature s y authorized agent. A. 3AC Inde uiity Cospomtior: e®4,µ NIiY CO Qf'p� �'pi.f0l�lf 4 /President Form # 52U09tl4 (519(1) 4o4 � dvrk !secretary Authorized Representative