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HomeMy WebLinkAboutWater Revenue Bond � E w LIVERMORE KLM do LO'1T P-A- DOCKET SHEET WUER: VILLAGE OF TEQUESTA MM WATER BOND�,SER�TES 84 FEE: 1 S, o o cc, - r � ` Local Atty - Dnderw6ter/PiacAl Agent: Date Aevit I �. l �a� off— 575 6z-a7 ���' o - �TiR►�' Br�A'D N?Ey 813 ` 287 5/ /8 L 1,6 E92T y Iv `4 Ti o✓Yig [, — / o '-t • ! R E 7R v c )&-, co,v,M/VV 4 6 166A'TX fV4 r/ a✓,ei L 27 le, �'. S 9,4R iVETr D9LE C.o t, �y / -'- -N_ a £E-- -- vt, k ►4 IS C - A v EL 1s E xPL.4 /n/ 71 )( LE/1 -j LIVERMORE KLEIN 8 LOTT, P.A. ATTORNEYS AT LAW 1750 GULF LIFE TOWER DANIEL U. LIVERMORE,JR. JACKSONVILLE, FLORIDA 32207 RICHARD E. KLEIN RICHARD I. LOTT TELEPHONE 904/399 -0500 PATRICIA D. LOTT TELECOPY 904/398-0500 WILLIAM L. ZVARA T. DEAN DICKSON April 23. 1991 Mr. Carlton D. Stoddard 106 Golfview Drive Tequesta. Florida 33469 -1921 Re: Village of Tequesta Use of Water System Land for Library Purposes Dear Mr. Stoddard: I have reviewed your letter regarding the Tequesta library site. I enclose for you a copy of my letter to Mr. Randolph, the Village Attorney for Tequesta. dated March 28. 1991 relating to this subject. As I mentioned to Mr. Randolph, I believe the Bond Resolution fully protects the Bondholders, in that, if this site is either leased or sold, the fair market value rent or sale price must be deposited in the Renewal and Replacement Fund and used for the purposes of that fund for the benefit of the water system. Until it is so used, the investment income will also be held in the Renewal and Replacement Fund or transferred to the Revenue Fund, again for the benefit of the water system. These protections for the Bondholders eadst, whether the Village obtains funds for this purpose from the County, or whether the Village transfers other revenues of the Village into the Renewal and Replacement Fund for that purpose. As I am sure you are aware, my analysis is strictly limited to the legal analysis of the existing Bond Resolution, and does not address the merits of the choice of site for the new library or the decision as to how the Renewal and Replacement Fund would be funded in the event that the water system site is utilized. I hope I have responded fully to your questions, and if I can be of any further assistance, please let me know. Sincerely, Daniel U. Livermore, Jr. ' DULJr /pk -1896 \Stoddard r cc: Ms. Pat Walsh. Senior Administrator, Utility Unit, Municipal Bond Investors Assurance Corporation Mayor Joseph Capretta Village of Tequesta, Florida Bill Kascavelis, Finance Director Village of Tequesta Mr. John C. Randolph. Village Attorney Jones, Foster. Johnston & Stubbs Caton D Stoddard + 106 Goltview Dr Tequesta FL 33469.1921 Mr. Daniel U. Livermore, Jr. April 17, 1991 Livermore, Klein & Lott, P.A. Attorneys at Law 1730 Culp Life Tower Jacksonville, Florida 32207 Dear Mr. Livermore: We have received a phone call replying to my enclosed letter to Municipal Bond Investors Insurance Corporation. Their suggestion was that you send them a detailed outline of the proposal to lease Tequesta water system land to Palm Beach County at a nominal charge, for a county library. The land would be leased for up to 99 years at a token rental charge, in effect a gift of land to the county. As Tequesta's signatory as Mayor in 1985 refinancing our water system indebtedness, I must sincerely question the propiety and - very- possibly the legality of such a land leasing arrangement. In reality, this divestiture of land from the Tequesta water system subtracts $300,000 fair market land value from our water department's capital base. Tequesta's water revenue bonds, or any future issue of bonds which may be needed for an osmosis system or other substantial capital expenditure, must be considered. Any divestiture of our water system land would diminish the capital value of land as collateral, if it was no longer a part of the water system. Further, the $300,000 fair market value of the land should earn interest for our water department. Over 99 years, the sum for interest alone would be astronomical. If financed over 10 years at 8 percent simple interest not compounded, plus principal, it would total over a half million dollars. Using surplus water revenues to pay for this library land lease would tie up substantial funds which will be needed for other municipal costs which are escalating at a disturbing rate. It should be noted that a superior site is available for the library as a gift from the land owners, near Tequesta's postoffice in our Golden Circle masterplan area. This site was approved by Palm Beach County library administration, and the Village Council. An owner of commercial shops near Tequesta village hall wants the library nearby as a magnet for the stores and shops. A political group the shops owner organized exerted heavy pressure on the Village Council to change its vote, which originally unanimously favored the library site available at no cost near our postoffice. This political pressure serving private interests is not acting in the best interest of all the people of Tequesta. Over 10,000 people in Tequesta's water service area in Palm Beach and Martin counties would have to pay for library land through their water bills for years to come, if Tequesta leases water system land for a county library at little or no charge for 99 years. -2- We hope you will enlighten the Municipal Bond Investors Insurance Corporation as to the full details of the proposal to lease this Tequesta water system land, with no revenue from it as a result. We earnestly feel that this would be in conflict with the covenant governing our water revenue bond issue of 1985. By now you may also have heard from Tequesta's Finance Director Bill Kascavelis. Would you kindly write to Ms. Pat Walsh, Senior Administrator, Utility Unit, Municipal Bond Investors Insurance Corporation, 113 King Street, Armonk, N.Y. 10504. We would be grateful for a copy of your letter to her. Ms. Walsh phoned me suggesting that you as bond counsel provide the bond insurors full details. Most appreciatively, Carlton D. Stoddard Mayor of Tequesta 1983 -88 CC: Mayor Joseph Capretta Finance Director Bill Kascavelis Carlton D Stoddard 106 GoNew Dr Tequesta FL 33469.1921 Ms. Rose Mangiameli April 8, 1991 Utility Surveillance Division Municipal Bond Investors Insurance Corporation 113 King Street Armonk, N.Y. 10504 Dear Ms. Mangiameli: As former Mayor of Tequesta, Florida, I was a signatory of our municipal Water Refunding Bonds, Series 1985, in the amount of $1,525,000. A problem has arisen in Tequesta affecting land owned by our water system which is proposed to be leased to Palm Beach County for a new county library next to Tequesta village hall. This land is encumbered by our water bonds which will not mature until October 1, 1996. The water bonds in effect have a lien on the land. Can the Municipal Bond Investors Assurance Corporation, as insurors of our water bonds, advise us as to the legality of such a lease whereby the land would no longer have potential use by our water system? The land in question is part of a 3 acre parcel presently used by our water department for a large water reservoir and one of Tequesta's main wells. Tequesta provides water for about 10,000 or more customers, including over 4,600 in Tequesta. Expansion of our water system, including more wells and water treatment capacity, perhaps in the future costly reverse osmosis, is a continuing problem. In no way would we want to jeopardize our water bonds, or our AAA Standard & Pooi's or Moody's bond rating by divestiture of land collateralizing our bond issue. The covenant governing our Water Refunding Revenue Bonds stipulates that the Village of Tequesta "binds and obligates itself not to sell, lease, encumber or in any manner dispose of the water system as a whole until all of the Refunding Bonds have been paid in full, principal and interest. "The Village may sell or dispose of, for fair market value, any properties or parts of the System which the Consulting Engineers shall certify in writing are not necessary for the continuing operation of the System, and that the sale or disposal of which will not adversely affect the Revenues to be derived from the System to such extent that the Village will fail to comply with the covenants of the Resolution. "The proceeds derived from any sale or disposal of any properties or parts of the System, in the discretion of the Village, shall 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 f -2- t or retirement of the Refunding Bonds, provided, however, that if the Consulting Engineers certify that the proceeds are necessary for the purpose stated in part (1) such proceeds shall remain in the Renewal and Replacement Fund until such certified requirements are satisfied and the proceeds shall not be used for any other purpose." Bond counsel has written our village attorney that leasing the land to the county for a library might be possible. No amount or details of such a lease were mentioned. The land in question is valued at about $300,000. If leased to the county, based on full and fair market value and 8 percent interest, over a 10 year financing period, the amount committed for the leased land would total about a half million dollars. Palm Beach County has money from library taxes to build the library, but no money to pay for the lease of land. It has been proposed that the lease could be funded by surplus earnings of the water system. Would this be legal? Tequesta has a very good alternative site for the new county library on land next to our U.S. postoffice. Owners of this land, valued at $285,000, have offered to donate it for the library. Your interpretation of the covenants binding our Water Revenue Bonds, and the legality of a long term lease of water system land for a library, would be most helpful. Your advice would be truly appreciated. Sincerely, Carlton D. Stoddard Mayor of Tequesta 1983 -88 CC: Mayor Joseph Capretta Village Finance Director Bill Kascavelis Karen Marcus, Chairman, Palm Beach County Board of Commissioners LIVERMORE KLEIN 8 LOTT, P.A. ATTORNEYS AT LAW 1750 GULF LIFE TOWER DANIEL U. LIVERMORE,JR. JACKSONVILLE, FLORIDA 32207 RICHARD E. KLEIN RICHARD I. LOTT TELEPHONE 904/399 -0500 PATRICIA D. LOTT TELECOPY 904/398 -0500 R WILLIAM L. ZVAA March 28, 199 T. DEAN DICKSON (via FAX) Mr. John C. Randolph Jones, Foster, Johnston & Stubbs 505 South Flagler Drive Drawer E West Palm Beach, Florida 33402 (407) 832 -1454 Re: Use of Water System Land for Library Purposes Dear Mr. Randolph: At your request, we have reviewed the deed dated January 29, 1969, pursuant to which the Village of Tequesta obtained title to certain land which it now proposes to lease to Palm Beach County for a nominal rental for use as a County library. We also reviewed Council Resolution No. 1 -68, pursuant to which the Village purchased the land in question by issuance of Water Revenue Certificates, dated July 1, 1967. Based on the deed and the method of payment, it would appear that the land in question is clearly a part of the water system, as the "System" is described in Resolution No. 2 -84 \85 (the "Bond Resolution "), which provides for issuance of the Village's presently outstanding water revenue bonds. As we discussed by telephone, Section 16H. of the Bond Resolution is a covenant that the Village will not sell, lease, encumber or in any manner dispose of the System as a whole, and the covenant goes on to permit the Village to dispose of, for fair market value, any properties or parts of the System if the Village's consulting engineer certifies that such properties are not necessary for the continued operation of the System and that the disposal will not adversely affect the gross revenues of the System to such an extent that the Village will fail to comply with other covenants in the Resolution, including the Village's rate covenant. The covenant further requires the proceeds of the disposal of parts or properties of the System to be deposited in the Renewal and Replacement Fund and used for the purposes thereof under the Resolution. In our view, the Village could properly enter into a lease with Palm Beach County for use of the property in question as a County library, providing that the Village obtains an appropriate certification from the consulting engineer under this Section of the Bond Resolution and deposits into the Renewal and Replacement Fund the fair market value of the property disposed of. Since the disposition will constitute only use of the property under a lease for a period of time, we believe that the Village could either determine the fair market value of the rent for use of the land during the period of the lease and deposit that amount annually from other funds of the Village into the water system Renewal and Replacement Fund, or the Village could transfer the ownership of the real property out of the water system before -the lease is entered i UVERMORE KLEIN $ L.OTT, P.A. Mr. John C. Randolph March 28, 1991 Page -2- into, by transfer of the fair market value of the property from other funds into the Renewal and Replacement Fund. If the annual rental method is used, the money deposited into the Renewal and Replacement Fund would be available only for the specific uses of that fund under the Bond Resolution. However, we also point out that surplus revenues of the water system, after making all of the other payments required under the Bond Resolution, may be applied by the Village for any lawful purpose, including transfer from the water system funds to the general funds of the Village. Thus, to the extent that the rental income deposited in the Renewal and Replacement Fund contributes to generation of surplus water revenues, the transfer are really merely circular in nature and would not involve ultimate restriction or "payment" of Village funds. The effect of making this transfer is, however, to protect the revenue stream which is legally available and pledged to secure the outstanding bonds of the Village. If I can be of any further service, or if I have misconstrued any of the facts as I understand them, please let me know. Sincerely, ,A. I I J-1 Daniel U. Livermore, Jr. DULJr /1p- 1896- RandolLt L . VILLAGE OF TEQUESTA ` Post Office Box 3273 357 Tequesta Drive Q Tequesta, Florida 33469 -0273 • (407) 575 -6200 ° FAX: (407) 575 -6203 6 4 f,CN COU141 April 22, 1991 Mr. Daniel U. Livermore, Jr., Esq. Livermore, Klein & Lott, P.A. 1730 Gulf Life Tower Jacksonville, Florida ;2207 RE: Village of Tequesta Use of Water System Land For Library Purposes; Municipal Bond Investors Insurance Corporation Dear Mr. Livermore: I have before me a copy of a letter that you received from Carlton Stoddard dated April 17, 1991. In response to Mr. Stoddard's letter to you, I felt that it would be appropriate to provide you with a copy of a letter to the Municipal Bond Investors Insurance Corporation from John C. Randolph, Village Attorney, which was unanimously authorized by the Village Council in response to correspondence sent to the Municipal Bond Investors Insurance Corporation from Mr. Stoddard. Please be assured that the Village leas and will continue to follow your advice :relative to use of the Water System Land for library purposes as outlined in your latter of March 28th to Mr. Randolph pertaining to this same subject. Should you have any questions regarding this matter, please feel free to contact me. Sincerely, Thomas G. Bradford Village Manager TGB /mk cc: John C. Randolph, Esq., w /attach. Recycled Paper nD Cato Stoddard 106 GoNew Dr Tequesta FL 33469.1921 April 29, 1991 Mayor Joseph N. Capretta 252 Tequesta Circle Tequesta, FL 33469 Dear Mr. Mayor: By now you have probably received a copy of bond counsel Daniel U. Livermore, Jr.'s reply to my letter inquiring as to the legality and propriety of leasing land owned by the Tequesta water system to Palm Beach County for a library located near Village Hall. Attorney Livermore states correctly that the land can be sold or leased ... but ... it must be compensated for at fair market value The money must be deposited in the water department's Renewal and Replacement Fund, to be used exclusively for the water system As Mr. Livermore points out, this is required to protect the equity of water bondholders. This protection for the bond- holders exists whether the Village of Tequesta obtains money from the county to compensate for the land at fair market value, or whether the Village transfers other revenues into the water department's Renewal and Replacement Fund. Since Palm Beach County has no money for the land, valued at about $300,000, the Village must commit this amount from water revenues or other revenues. This presumably would compensate the water department for land leased at a token rate for a long term. (Up to 99 years ?) Even though the Village might possibly be able to do this legally, it would tie up funds which may be urgently needed for other sizeable capital expenses. We understand that no money is yet budgeted for a much needed public service garage, or expansion of the police department. Committing $300,000 for library land would also reduce Tequesta's equity as a base for future revenue bonds. We understand that the Village administration proposes to pay for the library land out of surplus water revenues. This means that Tequesta's 10,000 plus water customers would be paying for the library land through their monthly water bills. Tequesta residents have already paid over $275,000 for the library in their county library taxes for several years. A way out of this dilemma would be for the Village Council to reconsider the superior Dorner site near the postoffice, available at no cost -- a gift from the Dorner family which built the postoffice and leases it to the U.S. Postal Service. The Dorner site, originally approved for the library by a 5 -0 vote of the Village Council, is valued at $285,000. The Dorner land could be deeded to the county for the library in perpetuity. -2- Locating the library on water department land next to Village Hall would not only tie up about $300,000 capital -- it would also compound the problem with added payments for interest if financed over a long period of time. The Village Council should not authorize an advisory referendum, which could delay the library for months, and risk losing it altogether. Petition signatures for the referendum represent only about 1 /10th of Tequesta's population. The Village Council should exercise its authority (and responsibility) to act in the best interest of Tequesta residents as a whole, not just a vocal few who want the library near Village Hall within a few minutes walking distance of their shops and residences. Surely there should not be an advisory referendum every time a special interest group petitions for one. With kindest wishes, Carlton D. Stoddard CC: Tom Bradford, Village Manager Village Council Bill Kascavelis, Finance Director Attorney Daniel U. Livermore, Jr. Village Attorney Skip Randolph William R. Nou & Co. THE FIRST AMERICAN BUILDING JOE B. WISE SUITE 306 VICE PRESIDENT RESIDENT MANAGER 701 U.S. HIGHWAY ONE ANTHONY C. SOVIERO POST OFFICE BOX 14095 VICE PRESIDENT NORTH PALM BEACH, FLORIDA 33408 CLARK D. BENNETT (305) 848 -8111 VICE PRESIDENT JUDY M. ROULIS May 28, 1 98 5 REPRESENTATIVE Daniel U. Livermore, Jr., Esq. Livermore, Klein & Lott, P.A. 701 Fisk Street, Suite 225 Jacksonville, FL 32204 RE: $1,525,000 Tequesta Water Refunding Revenue Bonds, Series 1985 Dear Dan: In connection with our application to Moody's Investors Service, Inc, to upgrade to "Aaa" the bonds refunded by the above - referenced issue, we have been asked to obtain a letter from your firm stating that "As a result of the issuance of $1,525,000 Tequesta Water Refunding Revenue Bonds, Series 1985, the Refunded Bonds have been fully defeased. We would appreciate receiving this letter from you at your earliest convenience. If you have any questions, please contact me at 305/848 -8111. Most sincerely, WILLIAM R. HOUGH & CO. jvdya Judy M. Roulis /jmr V STATE, COUNTY AND MUNICIPAL BONDS William H. Hough & Co. THE FIRST AMERICAN BUILDING JOE B. WISE SUITE 306 VICE PRESIDENT RESIDENT MANAGER 701 U.S. HIGHWAY ONE ANTHONY C. SOVIERO POST OFFICE BOX 14095 VICE PRESIDENT NORTH PALM BEACH, FLORIDA 33408 CLARK D. BENNETT (305) 848 -8111 April 18, 1985 VICE PRESIDENT JUDY M. ROULIS REPRESENTATIVE Daniel U. Livermore, Esq. ¢- �-1 Livermore, Klein & Lott, P.A. 701 Fisk Street Suite 225 \ Jacksonville, Florida 32204 Dear Dan: Please accept this small memento of the refunding of the Village of Tequesta's Water Revenue Bonds, Series 1978. As always, it has been a pleasure working with you and Brenda. Most sincerely, WILLIAn R. HOUGH & CO. ?cPresidenrt/Resident se Manager JBW /jmr STATE, COUNTY AND MUNICIPAL BONDS William R. Hou & Co. THE FIRST AMERICAN BUILDING JOE B. WISE SUITE 306 VICE PRESIDENT RESIDENT MANAGER 701 U.S. HIGHWAY ONE ANTHONY C. SOVIERO POST OFFICE BOX 14095 VICE PRESIDENT NORTH PALM BEACH, FLORIDA 33408 CLARK D. BENNETT (305) 848 -8111 VICE PRESIDENT JUDY M. ROULIS REPRESENTATIVE April 1, 1985 Mr. Robert Harp Village Manager Village of Tequesta P. 0. Box 3273 Tequesta, Florida 33458--rtaWate RE: $1,525,00 Teque efundiny Revenue Bonds, Series 198 Dear Mr. Harp: To date, we have received the following invoices (attached) with respect to the above - referenced bond issue, which are to be paid from bond proceeds: Purpose Budgeted Actual CPA Verification (Alexander Grant & Co.) $ 5,000.00 • $ 5,000.00 Bond Printing (Northern Bank Note Co.) 1,500.00 1,200.00 Official Statement Printing (Paramount Press) 3,000.00 1,671.15 Computer fees (William R. Hough & Co.) 15,000.00 15,000.00 Travel and Closing (Reimburse Wm. R. Hough & Co.) 3,000.00 1,416.09(1) (1) Does not include air travel for Messrs. Stoddard and Harp, Hellenic Transportation or Conference Room Services provided by The Depository Trust Company. These invoices will be forwarded, when available. STATE, COUNTY AND MUNICIPAL BONDS William R. Hough & Co. Mr. Robert Harp Village of Tequesta April 1, 1985 Page Two As additional invoices payable from bond proceeds are received by this office, they will be forwarded to you for payment. Should you have any questions, please do not hesitate to contact either Joe Wise or me. Sincerely yours, WILLIAM R. HOUGH & CO. Judy M. oulis /jmr Attachments cc: John C. Randolph Daniel U. Livermore William iHough &Co. 100 SECOND AVENUE SOUTH SUITE 800 ST. PETERSBURG, FLORIDA 33701 (813) 823 -8100 February 26, 1985 Mr. Joseph M. Shore, CPA Alexander Grant & Co. Suite 1900 One Financial Plaza Fort Lauderdale, FL 33394 RE: VILLAGE OF TEQUESTA, FLORIDA WATER REFUNDING REVENUE BONDS, SERIES 1985 Dear Joe: Enclosed please find schedules that you will require for verification of the refunding schedules in connection with the above referenced issue. Also enclosed is the legal opinion of the Series 1978 Bonds being refunded. Very truly yours, WILLIAM RIP HOUGH & CO. Katherine H. Turner Vice President KHT/ cl m Enclosures cc: Robert Harp Daniel U. Livermore, Jr. ✓ Joe B. Wise STATE, COUNTY AND MUNICIPAL BONDS r s B a, P6 7� � 4 °�yG -_ - ------- .___ 2 3 �r� a(o�7, (Ho ' 6, 7 DO - - - -- - -- - - 0 _ - - -- ---------- - - - - -- - - -___� o; _- - - -- - - - - -- V ` _- - -- - -, �b lb OU It �o aoo LLB -/I �- -- ---------- - - _ -_ c� LIVERMORE KLEIN a LOTT P.A. ATTORNEYS AT LAW DANIEL U. LIVE RMORE,JR. 904/359 -0500 RICHARD E. KLEIN SUITE 225 RICHARD L LOTT 701 FISK STREET PATRICIA D. WHEELER JACKSONVILLE, FLORIDA 32204 MARK T. MUSTIAN JO ANN LLVIN KATHRYN L.SANDS CLAUDE L.MULLIS OF COUNSEL WILLIAM L. ZVARA March 26, 1985 t Mr. Robert Harp 4h Village Manager e'�9 � P.O. Box 3474 F c Tequesta, Florida 33458 <s 4 Re: $1,525,000 Village of Tequesta, Florida , j Water Refunding Revenue Bonds, Series 1985 t Dear Bob: Enclosed please find our statement for-services rendered in connection with the above ref If you have any questions, please call. Very truly yours, 4 GU/It.' Daniel U. Livermore, Jr. DU LJr/lp -101 C Enclosure • LAW OFFICES LIVERMORE KLEIN 8 LOTT SUITE 225 701 FISK STREET Mr. Robert Harp JACKSONVILLE, FLORIDA 32204 Village Manager 904/359 -0500 P.O. Box 3474 Tequesta, Florida 33458 ^ March 26, 1985 e j Re: $1,525,000 Village of Tequesta, Florida Water Refunding Revenue Bonds, Series 1985 �, UP ':� ® .� For professional services rendered as bond counsel, _ including preparation of authorizing, validation, sale and closing documents, and issuance of validity and tax opinions. $ 15,000.00 / For professional services rendered in preparation of official statement for the bonds. 4,000.00 / Expenses: Copies $ 533.80 Telephone Calls 145.00 Postage 464.49 Travel 1,400.74 Transcripts 125.00 2,669.03 �/ Total Due: $ 21, 669.03 (/ 3 —2Ek 101C -DUL AP V E D F 0 Ra PA Y N l P4.-NT B Y Is., .a -3-28- Y5 k.- - <.1 �__.�_ PAID, CK NO. �,'-353�5 LAW OFr1Qte UVERMORE KLEm a L O TT SUITE 225 701 FISK STREET `•'r. Rohert Tia ^p JACXSOWLU, FLORIDA 322U Pillage �Tanaryer P.n. Box 3474 904 /359.05W Tecucste. Florida 33458 ?1 "arch 26, 1985 Fe: S1,525,Cor, 1'ill�, -e of Tegt;eGta, Florida Water Refun( -JT7 REVen'.ae Bonds, Series 1985 Fon ,�rcf��.;ionr l se�� ices ren:'ere�i az h Co,1r in l it L�epa ^r,t;on c` b ond a aut'�nri� in ~, vali• ation, sale o�i end closing ��ocu ^vents, and is�,_ ;arce of Vali y ar..-z tnx n :ons. S 5 15,0 ^7.00 For ssSOr &l Sf "Vle ^c rc':1F ^e'_' in F ,r Op , ' iratlor i of - .'.Ci�'l stgtL'1T cnt for tye bonds. E ? ;petlsrs 4 Copies ¢ 533. EO Tele,,�;one Calls Postage 145.00 'ravel 4C4.49 Transcripts 1,460.74 5. 0 2, 6GII To Duc: �1,G60.03 101^ -T%t?L U �r�9'7�P�18° Y �61��Qelt�3+ A4A William R. Hough &Co. 100 SECOND AVENUE SOUTH SUITE 800 ST. PETERSBURG, FLORIDA 33701 (813) 823 -8100 February 26, 1985 Mr. Joseph M. Shore, CPA Alexander Grant & Co. Suite 1900 One Financial Plaza Fort Lauderdale, FL 33394 RE: VILLAGE OF TEQUESTA, FLORIDA WATER REFUNDING REVENUE BONDS, SERIES 1985 Dear Joe: Enclosed please find schedules that you will require for verification of the refunding schedules in connection with the above referenced issue. Also enclosed is the legal opinion of the Series 1978 Bonds being refunded. Very truly yours, WILLIAM R. HOUGH & CO. i� Katherine H. Turner Vice President KHT/ cl m Enclosures cc: Robert Harp Daniel U. Livermore, Jr. Joe B. Wise v STATE, COUNTY AND MUNICIPAL BONDS JOHNSTON, SASSER, RANDOLPH & WEAVER ATTORNEYS AND COUNSELORS AT LAW 310 OKEECHOBEE BOULEVARD HARRY A. JOHNSTON II WEST PALM BEACH, FLORIDA 33402 HENRY F. LILIENTHAL DONALD J. SASSER 1902-1982 JOHN C. RANDOLPH P. 0. BOX M H. ADAMS WEAVER HARRY ALLISON JOHNSTON 1895-1983 MAUREEN A. HACKETT ANN MARIE G. REZZONICO (305) 655.0108 December 10, 1984 Daniel U. Livermore, Jr., Esq. Livermore, Klein & Lott, P.A. 701 Fisk Street Jacksonville, Florida 32204 Re: Tequesta Bond Validation Dear Dan: Enclosed for your file is a certified copy of the Final Judgment in this matter. Very tr ,yours, J N C:- JCR /lsn Enclosure OFFICE OF THE VILLAGE MANAGER VILLAGE OF TEQUESTA 357 TEQUESTA DRIVE TEQUESTA, FLORIDA TELEPHONE MAILING ADDRESS AREA CODE 305 P. O. BOX 3273 746 -7457 TEQUESTA, FLORIDA 334SB March 11, 1985 Mr. Daniel U. Livermore, Jr. Livermore, Klein $ Lott, P.A. 701 Fisk Street, Suite 225 Jacksonville, Florida 32204 Dear Dan: RE: Village of Tequesta, Florida $1,525,000 - 930 Registered Water Refunding Revenue Bonds, Series 1985 Enclosed for your files is a copy of the "Public Meeting Certificate" pertaining to the referenced issue. Yours very truly, VILLAGE OF TEQUESTA ROBERT HARP Village Manager RH :mk Encl. cc: Mr. John C. Randolph, Village Attorney Mr. Joe B. Wise t OFFICE OF THE VILLAGE MANAGER VILLAGE OF TEQUESTA 357 TEQUESTA DRIVE TEQUESTA, FLORIDA TELEPHONE MAILING ADDRESS AREA CODE 305 P. O. 60X 3273 746 -7457 TEQUESTA, FLORIDA 33458 March 6, 1985 Mr. Daniel U. Livermore, Jr. Livermore, Klein & Lott, P.A. 701 Fisk Street, Suite 225 Jacksonville, Florida 32204 Dear Dan: RE: Village of Tequesta, Florida $1,525,000 - 930 Registered Water Refunding Revenue Bonds, Series 1985 Proofs We have received the above- referenced proof and note an error in your I approving opinion, fourth line. The Resolution Number should be hyphenated to read 11 2- 84/85 ". (See enclosed copy) � Yours very truly, VILLAGE OF TEQUESTA ROBERT HARP Village Manager RH:mk Encl. cc: Mr. John C. Randolph, Village Attorney, w /encl. Mr. Joe B. Wise, w /encl. - • ' � � N,euge or the net revenues derived by the Issuer from the certain other covenants and agreements respectin t operat of its complete water system (the 'System ") o as the Pledged Revenues "), - all in the manner provided in the Resolution. (hereinafter referred t ' Resolution. j This Bond does not constitute a general obligation, or a pledge of the faith, credit or taxing It is hereby certified and recited that all acts, Condit Issuer, the State of Florida or any political subdivision thereof, within the meaning of any co po of toe in performed precedent to and a the issuance of this Bc statutory provision or limitation. Neither the State of Florida nor an thereto, andt that the issuance ofathe required onds of this ssL the Issue shall be obligated (1) to exercise its ad valorem taxi' y Political subdivision thereof, nor the or an other on any real or personal property in the Issuer to pay the p pal of the Bonds, the st or limitations to the i p ov sions of the Resolution respectin, an form other costs incident thereto or (2) to pay the same from any other funds of the Issuer, except from the and incidents of a negotiable instrument under the Unifor Pledged Revenues, in the manner provided herein and in the Resolution. It is further agreed between the State of Florida. Issuer and the registered holder of this Bond that this Bond and the indebtedness evidenced hereby shall Subject to the limitations and upon payment of the i not constitute a lien on the Project or any other property of the Issuer, but shall constitute a lien only on the exchanged for a like aggregate Principal Amount of B Pledged Revenues, in the manner provided in the Resolution. Bonds in denominations greater than $5,000 Principal Amount shall be deemed to be an equivalent In writing at the and a e transfera ble by the Registered H office of the Registrar denominations, and are transferable number of Bonds of the denomination of $5,000. If the date for payment of the principal of or interest on this bond shall be a Saturday, Sunday, legal not this Bond shall be overdue) for the purpose of receh located are authorized by law or execu The Issuer shall deem and treat the holiday or a day on which banking institutions in the city where the principal office of the paying agent is and interest due hereon and for all other pur ndt h tive order to close, then the date for such payment shall be the next contrary. LIVERMORE KLEIN & LOTT, P.A. ATTORNEYS AT LAW the net revenues derived by the Village from the operation (the `Net Revenues "). (904) 359 -0500 3. The Bonds have been duly authorized, executed anc Suite 225 special obligations of the Village, payable solely from the h 701 Fisk Street 4. Under existing laws, regulations and Judicial decis Jacksonville, Florida 32204 federal income taxation and the Bonds and the income the Mayor. Village of Tequesta the State of Florida, except estate taxes and taxes impos, income or profits on debt obligations owned by corporal! VILLAGE OF $1,525,000 We have also examined a fully executed and authentic WATER REFUNDING REVENUE BONDS, SERIES duly executed. SERIES 1985 It is to be understood that the rights of the holdei Dear Sir: Resolution and the Bonds, may be subject to the exercise principles of equity, to the valid exercise of the sovereign I We have acted as bond counsel in connection with the issuance by the Village of Tequesta, Florida (the constitutional powers of the United States of America 'Village'), of $1,525,000 Water Refunding Revenue Bonds, Series 1985 (the 'Refunding Bonds "), Statutes 23, 1984 pursuant moratorium and other similar laws affecting creditors' rigl to the Constitution and laws of the State of Florida, particularly Chapter 166, Part 11, Florida \� (1983), Resolution No. 284y85 duly adopted by the Village on October , as amended and \\ supplemented, and r as �` Respec the ` such certified proceedings of thebVillagevand other aswe l de i em necessary to examine the opinion. d LIVERh contained in the Resolut and in i ce tified ! proceed! proceedings and relied o h er o certification sti of public of I cia l s The undersigned Village Clerk of the Village of T eoti c l furnished to us, without undertaking to verify the same by independent investigation. true and complete copy of the legal opinion as to the validity As of the date hereof, and based on our examination of the foregoing and the law and proceedings in date of such opinion, issued by Livermore Klein & Lott, P.A. 1 `,\ll this matter, we are of the opinion that: 1. The Village is duly created and validly existing as a municipal corporation of the State of Florida, with with the paying agent. the power to adopt the Resolution and to perform the agreements on its part contained therein and to issue the Bonds. 2. The Resolution has been duly adopted by the Village and constitutes a valid and binding special obligation of the Village enforceable upon the Village. The Resolution creates a valid first and prior lien on STATEMENT OF INSURANCE The members of Municipal Bond Insurance Association have issued a policy containing the following an account with nds o Citibank, N.A New which are then clue. k, or 11 being on file at the principal provisions, such policy Trust Company, office of Barnett Banks y, N . A., in holders of an p ons Jacksonville, Florida: the coupons, or presentment of such other proof of owners[ The insurance companies comprising the�Municipal Bond Insurance Association (the 'Association "), principal and interest together with any appropriate instrum each of which participates and is liable hereunder severally and not jointly in the respec Citibank, N.A., Citibank, N.A. shall disburse to such holders or forth opposite its name, in consideration r the payment of the premium and subject ti ti the terms of this ve percentage set of such surrendered and uncancelled Bonds and coupons less Policy, hereby unconditionally and irrevocably guarantee to any holder as hereinafter defined, other than an payment of transfer t of e such uncancelled Bonds and un ancelled coup the Issuer of the following described bonds, the full and complete payment required to be made by or on rr behalf of the Issuer to Barnett Banks Trust Company, N.A., in Jacksonville. Florida or its successor (the to Citibank, N.A., by the holders or the Paying Agent, the i i 'Paying Agent ") of an amount equal to the principal of and interest on, as such payments shall become due insure g rose to in proportion epa prepayment their emium percentage f which may atP A but sh not be so paid (except that in the event of any acceleration of the due date of such principal, the nsure a used loss herein, the he p y p Payments guaranteed hereby shall be made in such amounts and at such times as such payments of g ste ed owner any Bond registered as to principal on principal would have been due had there not been any acceleration), the following bonds (the 'Bonds"): the re books maintained b y the Paying Agent for such purpose and, $1,525,000 mean the bearer of the coupon. Village of Tequesta, Florida Any service of process on the members of the Associatior Water Refunding Bonds, Series 1985 members of the Association or the General Manager of the As! The insurance companies constituting the members of the Association are as follows: The AEtna Casualty and Surety Company o The and binding as to the Association and each of its mer Fireman's Fund Insurance Company 33/o Municipal Issuers Service Company will act as the General M, Th Travelers Indemnity Company 3000 The located at 34 South Broadway, White Plains, New York 1060 e Company 15% This policy is non - cancellable for any reason. The premi reason including the payment prior to maturity of Bonds. The Continental Insurance Company 120% Upon receipt of telephonic or telegraphic notice, such notice subsequently in writing by The Casualty 1 0% MU NICIPA L BOND I NSURANCE and Surety Con registered or certified mail, or upon receipt of written notice by registered or certified nfirmed mail, by the General Fireman's Fund Insurance Company hder payment for Association designee ofa Bond which is then due to he ayng Agent that such required p has not been r er cou The Travelers Indemnity Company to the Paying Agent, the Association on behalf of its members on the due date of such payment or within one business day after receipt of notice of such nonpayment, whichever is later, will make a deposit of funds, a The Continental Insurance Company Insurance Company The By MUNICIPAL ISSUERS SERVICE CI The following abbreviations, when used in the inscription on the face of the within bond, shall be construed as though they were writte TEN COM- as tenants in common n out in full accor( TEN ENT- as tenants by the entireties UNIF GIFT MIN ACT- Cu JT TEN- as joint tenants with (Cust) right of survivorship and under Uniform Gif not as tenants in common of Additional abbreviations may also be used though not in list above. FOR VALUE_ WFIVf_I), (It(j llll(I @I�Igll�(I ASSIGNMENT OFFICE OF THE VILLAGE MANAGER VILLAGE OF TEQUESTA 357 TEQUESTA DRIVE TEQUESTA, FLORIDA TELEPHONE MAILING ADDRESS AREA CODE 3135 P. O. BOX 3273 746 -7457 TEQUESTA, FLORIDA 33458 March 6, 1985 MBIA Municipal Issuers Service Corporation. 34 South Broadway Box 788 White Plains, New York 10602 Attention: Ms. Katherine A. Leary Gentlemen: RE: $1,525,000.00 Village of Tequesta, Florida Water Refunding Revenue Bonds, Series 1985 Pursuant to your request, we are enclosing original executed application for Municipal Bond Guaranty Insurance, Application No. 85- 01 -6232 pertaining to the referenced issue. Yours very truly, VILLAGE OF TEQUESTA ROBERT HARP Village Manager RH:mk Encl. cc: Mr. Daniel U. Livermore, Esc{. w /encl. Mr. John C. Randolph, Esq., Village Attorney, w /encl. Mr. Joe B. Wise, William R. Hough & Co., w /encl. N O R T H E R N P. Box 608 LaGrange, Illinois 60525 5400 East Avenue Countryside, Illinois 60525 BANK NOTE COMPANY Telephone 312 482 3900 Telecopier 312 482 3332 March 7, 1985 Ms. Judy M. Rouiis William R. hough S Company 701 U.S. Highway No. 1 Suite 306 North Palm Beach, Florida 33408 Re: VILLAGE OF TEQUESTA, Florida $1,525,000 - 930 Registered mater Refunding Revenue Bonds, Series 1985 Dear Judy: Having received final clearance of the proofs for the issue referenced above, we are now in the process of printing these bonds. They are scheduled for completion and shipment to Mr. James David on March 13, 1985 via Federal Express. We trust these arrangements are satisfactory but if you have any questions or comments, pleasa give me a call at once. Cor d_i�ally, Thomas R. Richards et Sales Manager cc: Mr. Daniel U. Livermore, Jr. Mr. _ ames B. David, Jr. v 1 Established 1891 Security Requires Custody of Engravings p IX � Prepared by this Company / p/ l N O R T H E R N P.O. B o x 608 LaGrange, Illinois 60525 5400 East Avenue Countryside, Illinois 60525 BANK NOTE COMPANY Telephone 312 482 3900 Telecopier 312 482 3332 March 1, 1985 VIA FEDERAL EXPRESS Mr. Daniel U. Livermore, Jr. Livermore Klein & Lott, P.A. 701 Fisk Street Jakcksonville, Florida 32204 Re: VILLAGE OF TEQUESTA, Florida $1,525,000 - 930 Registered Water Refunding Revenue Bonds, Series 1985 Dear Dan: Two proofs for the above issue are enclosed herewith and we are sending one to each person receiving a copy of this letter -- two proofs of the MBIA Statement are being forwarded to Lisa Kelleher and we will look to both you and Lisa for the appropriate clearance of proofs. If this can be provided, along with all missing information, on Tuesday March 5th, we will complete our work for shipment on March 12th. Assuming the CUSIP number assignment has been requested and is available in time, the base portion will be printed -- if not, only the word "CUSIP" will be printed to indicate where the numbers should be placed. These bonds will be numbered R -1 through 930 and printed blank as to registered owner, denomination, maturity date, interest rate, date of authentication and CUSIP suffix. We will need to know the quantity of bonds to be mounted on carrier sheets, a requirement of the registrar. Shipment will be made to Jim David and we will include ten cancelled specimens plus our printers certificate. In addition, we will provide you with ten specimens, Judy Roulis with fifteen and Valerie Simon and Lisa Kelleher with one each for the records of DTC and MBIA respectively. Shortly after shipment has been made, our invoice will be directed to William R. Hough & Company for Judy's attention. SEE REVERSE SIDE FOR TERMS AND CONDITIONS OF SALE. Cordially, 7 pbj Enclosures Thomas R. Richards, Sales Manager cc -w /encls: (Via Federal Express) - Ms. Judy Roulis Mr. James B. David, Jr. Ms. Valerie Simon Ms. Lisa Kelleher (MBIA only) (Mail) - Mr. Richard L. Weill (MBIA only) P.S. We do need to be furnished with signature specimens of the / = Mayor for use in facsimile reproduction, which must be on Established 1891 hand prior to receipt of proof clearance or printing will be y Security Requires delayed. Custody of Engravings Prepared by this Company tOFFICE OF THE VILLAGE MANAGER VILLAGE OF TEQUESTA 357 TEQUESTA DRIVE TEQUESTA, FLORIDA TELEPHONE MAILING ADDRESS AREA CODE 305 P. O. BOX 3273 746 -7457 TEQUESTA, FLORIDA 33458 March 12, 1985 Mr. Daniel U. Livermore, Esq. Livermore, Klein & Lott, P.A. Suite 225 701 Fisk Street Jacksonville, Florida 32204 Dear Mr. Livermore: RE: $1,525,000 Village of Tequesta, Florida Water Refunding Revenue Bonds, Series 1985 At the request of Judy M. Roulis, William R. Hough $ Company, enclosed is a certified copy of the Treasury Bond Purchase Agreement dated August 1, 1978 between the Village and Jacksonville National Bank, Jacksonville, Florida. Yours very truly, VILLAGE OF TEQUESTA s CYRESE COLBERT Village Clerk /mk Encl. ADVICE OF SHINVIENT =_=- =. - = = =` . N O R T H E R N Established 1891 ' = BANK NOTE COMPANY Security Requires Custody of Engravings Prepared by this Company P.O. Box 608 LaGrange, Illinois 60525 TELEPHONE 482-3900 AREA CODE 312 INVOICE TO: TERMS: NET ON RECEIPT OF INVOICE. Willi&* R. Hough i Co. Past Due Invoices are subject to a 1' /x% per month 70*1 U.B. g19tway Ha. 1 service charge (Annual Rate 18 %) Suite 306 F.O.B. COUNTRYSIDE, ILL. PLEASE RETURN COPY WITH REMITTANCE North Palm Beach, PL 3340 Attn: Ms. Judy Roulis ATE RECD OUR JOB NO. INVOICE NO. DATE OF INVOICE CUSTOMER ORDER ISSUER VILLAGE OF 1"13QUESTA, Plorida. QUANTITY DESCRIPTION No of Maximu ofm No. of NUMBERED Maturities Coupons Rates 930 mater Refunding Revenue Bone ?, Series 19aS BLANK AS TO Rag. Ciwsaer, Denom. , Tnt. Rate, Mat. Dane, Date of Aut_h., Cusip Suffix R -2 to 400 mounted on carrier sheets SP8CIIN[St35 t r 10 — Mr. Daniel U. Livermore, Jr. (Livermore Klein i Lott, P.A.) 701 Fish Street, Jacksonville, FL 32204 FEDERAL 718608021 15 -Its. Judy Roulis, (See Billing) FEDERAL 718608037 10 { printers Ctf. (Kith /shipment) - Ms. Valerie Siaan, ( The Depositary Trust CompsnY) 55 dater Street, NY, MY 10041 Hs. Lisa Kelleher, (MBIA), 34 South Broadway, white Plains, MY 10602 SHIP TO: DATE SHIPPED VIA NUMBER OF PACKAGES Mr. James B. David, Jr. Barrett Banks Trust Company, N.A. 3 -12-85 Federal 801 Rivers #c(ea Ave 1121769086 Jacksonville, FL 32204 OFFICE OF THE V.LLAGE MANAGER S VILLAGE OF TEgUESTA 357 TEgUESTA DRIVE TEgUESTA, FLORIDA TELEPHONE MAILING ADDRESS AREA CODE 303 P. D. BOX 3273 746 -7457 TEgUESTA, FLORIDA 33458 February 27, 1985 Mr. John C. Randolph Johnston, Sasser, Randolph P. 0. Box M ,,West Palm Beach, Florida 33402 Dear Skip: RE: $1,525,000.00 Water Refunding Revenue Bonds, Series 1985 Enclosed for your files is a copy of Resolution No. 6 -84/85 per- taining to the referenced subject. Yours very truly, VILLAGE OF TEQUESTA ROBERT HARP Village Manager RH:mk Encl. cc: Mr. Daniel U. Livermore, Jr., Esq. Certified Copy William R.HouQh &Co. THE FIRST AMERICAN BUILDING JOE B. WISE SUITE 306 VICE PRESIDENT RESIDENT MANAGER 701 U.S. HIGHWAY ONE ANTHONY C. SOVIERO POST OFFICE BOX 14095 VICE PRESIDENT NORTH PALM BEACH, FLORIDA 33408 CLARK D. BENNETf (305) 848 -8111 VICE PRESIDENT JUDY M. ROULIS REPRESENTATIVE February 19, 1985 Honorable Mayor and Council Members Village of Tequesta Post Office Box 3273 Tequesta, FL 33458 Attn: Robert Harp Village Manager RE: Village of Tequesta Water Refunding Bonds, Series 1985 Dear Mayor and Council Members: We are pleased to advise that the Municipal Bond Insurance Association (MBIA) has verbally committed to insure the above - referenced bond issue. The premium quoted is .79 of'1% of total debt service, plus $3,200, payable to MBIA for the "AAA" rating by Standard & Poor's Corporation. The cost of Moody's Investors Service's rating is included in the MBIA premium of 79 of 1% of total debt service. All of the above will be confirmed in writing by MBIA later this week. Sincerely yours, WILLIAM R. HOUGH & CO. Joe B. Wise Vice President JBW /jmr cc: Dan Livermore Skip Randolph Worth Blackwell STATE, COUNTY AND MUNICIPAL BONDS NOWLEN, HOLT, MINER & KISKER CERTIFIED PUBLIC ACCOUNTANTS 215 FIFTH STREET SUITE 200 POST OFFICE BOX 347 WEST PALM BEACH, FLORIDA 33402 TELEPHONE (305) 659-3060 MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF _ EVERETT B. NOWLEN, CPA, (1930.1984) - JANET R. BARICEVICH, CPA WANDA W. BERGERON, CPA CERTIFIED PUBLIC ACCOUNTANTS EDWARD T. HOLT, CPA B.E- WEEKS, CPA BERNARD J. DONTH, CPA ACCOUNTING FIRMS ASSOCIATED INC. WILLIAM B. MINER, CPA RICHARD J. HUTCHINSON. CPA FRANK D. TEETS, JR., CPA WILLIAM C. KISKER, JR., CPA RICHARD D. HOOVER, JR., CPA MARIA D. GALDOS. CPA - BELLE GLADE OFFICE R. GREGORY SMITH, CPA CAROL A. CALLAHAM, CPA KATHLEEN A. BENTLEY, CPA - 333 S.E. 2nd STREET ROBERT W. HENDRIX, JR., CPA MARK A. MOORE, CPA DIANE ERRERA, CPA POST OFFICE BOX 338 BELLE GLADE, FLORIDA 33430 TELEPHONE (305) 996 -5612 February 14, 1985 Mr. Joseph B. Wise William R. Hough & Company P.O. Box 14095 North Palm Beach, Florida 33408 Re: Village of Tequesta /Water Refunding Revenue Bonds, Series 1984 Dear Mr. Wise: Enclosed is a copy of the comfort letter we expect to issue upon completion of the special procedures which we will perform in connection with the Village's $1,365,000 Water Refunding Revenue Bonds, Series 1985. As I indicated in our conversation Monday, the cost of performing these procedures is not anticipated to exceed $3,000. Please review the letter and contact me if you have any questions. Sincerely, C R s Nowlen, Holt, Miner & Kisker RJH:rlr Enclosure f t . NOWLEN, HOLT, MINER & KISKER CERTIFIED PUBLIC ACCOUNTANTS 215 FIFTH STREET SUITE 200 POST OFFICE BOX 347 WEST PALM BEACH, FLORIDA 33402 TELEPHONE (305) 65 9-3060 MEMBERS . _ AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF EVERETT B. NOWLEN, CPA, (1930.1984) JANET R. BARICEVICH, CPA WANDA W. BERGERON, CPA CERTIFIED PUBLIC ACCOUNTANTS EDWARD T. HOLT, CPA B.E. WEEKS, CPA BERNARD J. DONTH, CPA - ACCOUNTING FIRMS ASSOCIATED INC. WILLIAM B. MINER, CPA RICHARD J. HUTCHINSON, CPA FRANK D. TEETS, JR.. CPA WILLIAM C. KISKER, JR.. CPA RICHARD D. HOOVER, JR., CPA MARIA D. GALDOS. CPA BELLE GLADE OFFICE R. GREGORY SMITH. CPA CAROL A. CALLAHAM, CPA KATHLEEN A. BENTLEY. CPA 333 S.E. 2nd STREET ROBERT W. HENDRIX. JR., CPA MARK A. MOORE, CPA DIANE ERRERA, CPA POST OFFICE BOX 338 BELLE GLADE, FLORIDA 33430 TELEPHONE (305) 996 -5612 The Honorable Mayor and Councilmen Village of Tequesta, Florida Tequesta, Florida 33458 William R. Hough & Company P.O. Box 14095 North Palm Beach, Florida 33408 Gentlemen: We have examined the general purpose financial statements of the Village of Tequesta, Florida, as of and for the year ended Septem- ber 30, 1984, that are included in the Official Statement relating to the Village's $1,365,000 Water Refunding Revenue Bonds, Series 1985; our report (which contains a qualification) with respect to the financial statements mentioned above is also included in the Official Statement, dated March 31, 1985, which hereinafter is referred to as "Official Statement." In connection with the Official Statement: 1. We are independent certified public accountants with respect to the Village of Tequesta, Florida, as defined in Rule 101 of the Code of Professional Ethics of the American Institute of Certified Public Accountants. 2. For purposes of this letter, we have read the minutes of meetings of the Village Council of the Village of Tequesta, Florida, for the period October 1,' 1984 to February 22, 1985. In addition, we made inquiries of certain officials of the Village responsible for accounting and financial matters regarding whether there was any change in the long -term debt of the Village. The foregoing procedures do not constitute an examination made in accordance with generally accepted auditing standards. Also, they would not necessarily reveal matters of significance with respect to The Honorable Mayor and Councilmen Village of Tequesta, Florida and William R. Hough & Company Page 2 the comments in the following paragraph. Accordingly, we make no representations regarding the sufficiency of the foregoing procedures for your purposes. 3. Nothing came to our attention as a result of the foregoing procedures, however, that caused us to believe that at February 22, 1985 there was any change in the long -term debt of the Village as compared with amounts shown in the September 30, 1984 audited combined balance sheet included in the Official Statement, other than as occasioned by repayments of such indebtedness, except as disclosed in the Official Statement. 4. We are unable to give a negative assurance with respect to the letter accompanying the audited financial statements for the year ending September 30, 1984 as the American Institute of Certified Public Accountants, Professional Standards, Volumn 1, AU Section 631.15, states that, "Because accountants have a statutory responsibility with respect to their opinion as of the effective date and, because the additional significance, if any, of negative assurance is unclear and such assurance may, therefore, give rise to misunderstanding..." 5. The Purchasers are hereby authorized to reproduce the general purpose financial statements of the Village of Tequesta, Florida as of and for the year ended Septem- ber 30, 1984 for use in the Official Statement and the letter issued by us relating to such financial statements. 6. This letter is solely for the information of, and assist- ance to, the underwriters in conducting and documenting their investigation of the affairs of the Village in con- nection with the offering of the securities covered by the Official Statement, and it is not to be used, circulated, quoted, or otherwise referred to within or without the underwriting group for any other purpose, including, but not limited to, the registration, purchase, or sale of securities, nor is it to be filed with or referred to in whole or in part in the Official Statement or any other document, except that reference may be made to it in the underwriting agreement or in any list of closing documents pertaining to the offering of the securities covered by the Official Statement. LIVERMORE KLEIN 8 LOTT, P.A. ATTORNEYS AT LAW 904/359 -0500 DANIEL U. LIVE RMORE, J R. RICHARD E. KLEIN SUITE 225 RICHARD L LOTT 701 FISK STREET PATRICIA D. WHEELER JACKSONVILLE, FLORIDA 32204 MARK T. MUSTIAN JO ANN LEVIN KATHRYN L. SANDS CLAUDE L. LLIS OF COUNSEL WILLIAM L. ZVARA To: Distribution From: Daniel U. Livermore, Jr. Date: February 21, 1985 Re: Village of Tequesta Water Refunding Revenue Bonds, Series 1985 In connection with the above referenced bonds, enclosed please find the draft official statement, revised to reflect comments received since February 6. We would appreciate your review and comments on Friday, February 22, if possible since we want to award them on Tuesday, February 26. BAM /pjh -278A -1896 William i Hough & Co 100 SECOND AVENUE SOUTH SUITE 800 ST. PETERSBURG, FLORIDA 33701 (813) 823.8100 February 27, 1985 Ms. Patricia Meadows Federal Reserve Bank of Atlanta, Jacksonville Branch 515 Julia Street Jacksonville, FL 32231 RE: SUBSCRIPTION FORMS FOR STATE AND LOCAL GOVERNMENT SERIES FOR THE VILLAGE OF TEQUESTA, FLORIDA WATER REFUNDING REVENUE BONDS, SERIES 1985 Dear Patsy: Enclosed are completed subscription forms for the State and Local Govern- ment Series for the above named issue for delivery on March 21, 1985. The letter authorizing Worth T. Blackwell or me to act as agent for the Village is also enclosed. Please timestamp the extra set of forms and return it to the above letter- head address to my attention. Thank you very much for your cooperation in this matter. Very truly yours, WILLIAM R. HOUGH & CO. Katherine H. Turner Vice President KHT/ Enclosures cc: Robert Harp Daniel U. Livermore ,--) Joe B. Wise STATE, COUNTY AND MUNICIPAL BONDS llJilliam R.HouQh & Co. THE FIRST AMERICAN BUILDING JOE B. WISE SUITE 306 VICE PRESIDENT RESIDENT MANAGER 701 U.S. HIGHWAY ONE ANTHONY C. SOVIERO POST OFFICE BOX 14095 %ICE PRESIDENT NORTH PALM BEACH, FLORIDA 33408 CLARK D. BENNETT (305) 848 -8111 VICE PRESIDENT JUDY M. ROULIS REPRESENTATIVE February 22, 1985 Honorable Mayor and Members of the Village Council Village of Tequesta Post Office Box 3273 Tequesta, Florida 33458 Attention: Robert Harp, Village Manager RE: Village of Tequesta, Florida Refunding Revenue Bonds, Series 1985 Gentlemen: It has been our practice to deliver the pertinent documents relative to the presentation of a Bond Purchase Agreement two days prior to the presenta- tion date. Because of the complexities of refunding a refunded issue, . coupled with normal market fluctuations, we cannot supply more than a copy of the Bond Purchase Agreement with the final figures left blank until February 26th. On the 26th, we will present these final figures, in the same basic format that we reviewed with you at your last meeting on February 12th. Mr. Harp, Mr. Randolph, Mr. Livermore and I will meet on the afternoon of the 26th to finalize the Bond Purchase Agreement prior to your 7:30 meeting. In this way, your staff and your attorneys will be fully apprised of its contents prior to the meeting and official presentation,. At the February 12th meeting, we discussed the bond closing in New York on March 27th and 28th. The fact that your Council members for 1985 will be officially seated on February 26th, and that a Mayor other than the incumbent could be selected on that date.poses a problem with the official signature on the bonds and upon certain documents. After discussion with bond counsel and local counsel, it is recommended that we close on March 20th and 21st, before the official seating takes place. If this is agreeable with the individuals involved, we will proceed to make reservations accordingly. STATE, COUNTY AND MUNICIPAL BONDS William B. Hough & Co. Honorable Mayor and Members of the Village Council February 22, 1985 Page Two Judy Roulis of our firm will be present on Tuesday evening to receive any requests to purchase bonds at the offering schedule which we will present at that time. Respectfully, A ice AM R. HO UGH & CO. . Wise President and Resident Manager JBW /dg cc: John Randolph Daniel U. Livermore Worth T. Blackwell Erno T . BRENDA Wit LER -, z La -44 r �? c FINANCIAL NEWS AND DAILY RECORD J k! -_✓� �: t y i � � f' IV Z- FINANCIAL NEWp- ND DAILY RECrD r �Pf '11 .rl . ✓�"- 4 N OFFICE7OF THE VILLAGE MANAGER VILLAGE OF TEQUESTA 357 TEQUESTA DRIVE TEQUESTA, FLORIDA TELEPHONE MAILING ADDRESS AREA CODE 303 P. D. BOX 3293 746 -7457 TEQUESTA, FLORIDA 33458 February 27, 1985 Mr. Joe B. Wise, Vice President William R. Hough $ Company The First American Bank Building Suite 306 701 U. S. Highway 1 P. 0. Box 14095 North Palm Beach, Florida 33408 Dear Joe: RE: $1,525,000. Tequesta Water Refunding Revenue Bonds, Series 1985 Enclosed for your files is a copy of our letter authorizing Katherine H. Turner and Worth T. Blackwell to file subscriptions for U. S. Treasury Obligations - State and Local Government Series with res- pect to the referenced issue. The letter was sent by Federal Express to Shirley Knight at the William R. Hough & Company, Jacksonville office. Yours very truly, VILLAGE OF TEQUESTA ROBERT HARP Village Manager RH:mk Encl. cc: Mr. John C. Randolph, Village Attorney, w /encl. Mr. Daniel U. Livermore, Bond Counsel, w /encl. Ms. Katherine H. Turner, w /encl. OFFICE OF THE VILLAGE MANAGER VILLAGE OF TEQUESTA 357 TEQUESTA DRIVE . TEQUESTA, FLORIDA TELEPHONE MAILING ADDRESS AREA CODE 305 P.O. BOX 3273 746 -7457 TEQUESTA, FLORIDA 33458 February 27, 1985 Ms. Kathleen A. Bentley, C.P.A. Nowlen, Holt, Miner & Kisker 215 Fifth Street, Suite 200 P. 0. Box 347 West Palm Beach, Florida 33402 Dear Kathy: RE: $1,525,000.00 Water Refunding Revenue Bonds, Series 1985 This letter is to confirm our telecon with you this date requesting you to read the minutes of the February 26, 1985 Village Council Meeting within five (5) days of the March 21, 1985 closing bn the referenced bond issue. As advised, we will be going to New York on Wednesday, March 20, 1985. Yours very truly, VILLAGE OF TEQUESTA OBE HARP Village Manager RH:mk cc: Mr. Daniel U. Livermore, Jr., Esq. Livermore, Klein $ Lott, P.A. Suite 225 701 Fisk Street Jacksonville, Florida 32204 Mr. Joe B. Wise William H. Hough & Co. THE FIRST AMERICAN BUILDING JOE B. WISE VICE PRESIDENT SUITE 306 RESIDENT MANAGER 701 U.S. HIGHWAY ONE ANTHONY C. SOVIERO POST OFFICE BOX 14095 VICE PRESIDENT NORTH PALM BEACH, FLORIDA 33408 CLARK D. BENNETT (305) 848 -8111 VICE PRESIDENT JUDY M. ROULIS REPRESENTATIVE February 28, 1985 Mr. Michael Rocca Gee & Jenson 2090 Palm Beach Lakes Boulevard West Palm Beach, FL 33409 RE: $1,525,000 Village of Tequesta,'Florida Water Refunding Revenue Bonds, Series 1985 Dear Mr. Rocca: As per our telephone conversation of this date, attached you will find the final debt service amortization schedule for the above - referenced bond issue. We understand that you will be preparing a revised Page 12 of the Preliminary Official Statement reflecting these final figures. The revised data should be provided to Ms. Brenda Miller of Livermore, Klein & Lott. The Bonds were purchased from the Village on February 26, 1985 at a Net Interest Cost (NIC) Rate of 8.778153% for closing and settlement on March 21, 1985. Should you have any questions, please feel free to contact this office. Sincerely yours, WILLIAM R. HOUGH & CO. "'_Iq 0 &. Judy M. Roulis /jmr Attachment (1) cc: Brenda Miller Robert Harp STATE, COUNTY AND MUNICIPAL BONDS a VILLAGE OF TEOUESTA, FLORIDA WATER REFUNDING REVENUE PONDS, SERIES 1985 SEMIANNUAL DEPT SERVICE FROM 01/01/85 DATE PRINCIPAL RATE INTEREST TOTAL ANNUAL 04/01/85 0.00 0.00 10/01/85 25,000 5.500 92,028.75 117,028.75 117,028.75 04/01/86 31'.)"000 5.750 60, 665.00 90, 665.00 10/01/86 35,000 5.750 59,802.50 94,802.50 185,467.50 04/01/87 35,000 6.250 537796.25 93,796.25 10/01/87 357000 6.250 577702.50 92,702.50 186,498.75 04/01/88 35,000 6.750 567608.75 91,608.75 10/01/88 40,000 6.750 55,427.50 95,427.50 187,0 6.25 04/01/89 40,000 7.250 54,077.50 94,077.50 10/01/39 40,000 7.250 52,627.50 92,627.50 186,705.00 04/01/90 407000 7.500 517177.50 91,177.50 10/01 /90 45,000 7.500 49,677.50 94,677.50 185,855.00 04/01/91 457000 7.750 47,990.00 92,990.00 10/01/91 45,000 7.750 46,246.25 91,246.25 184,236.25 04/01/92 50,000 8.000 44,50=.50 94,502.50 10/01/92 50,000 8.000 42,502.50 92,502.50 1877005.00 04/01/9 55,000 8.250 40,502.50 95,502.50 10/01/93 55,000 8.250 38,233.75 93,238.75 188,736.25 04/01 /94 130,000 8.500 35,965.00 165,965.00 10/01 /94 135,000 8 .500 30,440.00 165,440.00 331.405.00 04/01/95 140,000 °.750 24,702.50 164,702.50 10/01/95 150,000 8.750 13,577.50 168,577.50 333,280.00 04/01 /96 150,000 8.900 127015.00 162,015.00 10/01/96 120,000 8.900 5,340.00 1257340.00 287,355.00 TOTAL 1, 525, 000 1, 035, 608.75 2, 560;'608.75 ACCRUED THRU 03/21 /85 27,267.78 27,267.78 NET COST 1, 008, 340.97 2, 5, 340. 97 AVERAGE COUPON 8.417 BOND YEARS 11,979.861 LIVERMORE KLEIN 8 LOTT, P. A. ATTORNEYS AT LAW 1 DANIEL U. LIVERMORE,JR. 904/359-0500 RICHARD E. KLEIN SUITE 225 RICHARD 1. LOTT 701 FISK STREET PATRICIA D. WHEELER JACKSONVILLE, FLORIDA 32204 MARK T. MUSTIAN JO ANN LEVIN CLAUDE L.MULLIS KATHRYN L.SANDS OF COUNSEL WILLIAM L. ZVARA To: Distribution From: Daniel U. Livermore, Jr. Date: February 21, 1985 Re: Village of Tequesta Water Refunding Revenue Bonds, Series 1985 In connection with the above referenced bonds, enclosed please find the draft official statement, revised to reflect comments received since February 6. We would appreciate your review and comments on Friday, February 22, if possible since we want to award them on Tuesday, February 26. BAM /pjh -278A -1896 VILLAGE OF TEQUFSTA WATER REFUNDING REVENUE BONDS, SERIES 1985 Distribution List Mr. Robert Harp Village Manager 357 Tequesta Drive Tequesta, Florida 33458 John C. Randolph, Esq. Johnston, Sasser, Randolph & Weaver 310 Okeechobee Blvd. West Palm Beach, Florida 33402 Mr. Joe B. Wise William R. Hough & Co. 701 U.S. Highway One Suite 306 North Palm Beach, Florida 33408 Marco H. Rocca Gee & Jenson 2090 Palm Beach Lakes Blvd. West Palm Beach, Florida 33402 Mr. Worth Blackwell William R. Hough & Co. 100 2nd Avenue S., Suite 800 St. Petersburg, Florida 33701 LKL- 02/06/85 -278A -1896 i LIVERMORE KLEIN 8 LOTT, P. A. ATTORNEYS AT LAW DANIEL U. LIVERMORE, J R. 904/359 -0500 RICHARD E. KLEIN SUITE 225 RICHARD 1. LOTT 701 FISK STREET PATRICIA D. WHEELER JACKSONVILLE, FLORIDA 32204 MARK T. MUSTIAN October 22, 1984 JO ANN LEVIN CLAUDE L.MULLIS KATHRYN L.SANDS OF COUNSEL WILLIAM L. ZVARA John C. Randolph, Esq. Johnson, Sasser, Randolph & Weaver 310 Okeechobee Boulevard West Palm Beach, Florida 33402 Re: Village of Tequesta Water Refunding Revenue Bonds, Series 1984 Dear Skip: Enclosed please find two copies of the revised resolution authorizing the above referenced bonds. Changes have been made pursuant to our meeting last week, except that we have left in the Amortization Installment definition in case there are any term bonds issued. If there is merely a balloon payment in the year of maturity, the financial structure would not necessarily be defined as a term bond. Enclosed find copies of forms of Complaint, Order to Show Cause, Acknowledgement of Service of the State Attorney, and form of Answer for the State Attorney for your use in filing validation proceedings in the above - referenced case. In processing the validation, please be sure to follow the requirements of Chapter 75, Florida Statutes. As I am sure you are aware, the Judge must enter the Order to Show Cause after the Complaint has been filed. You then should serve a copy of the Complaint with a certified copy of the Exhibits attached and a copy of the Order to Show Cause upon the State Attorney, who should then execute the Acknowledgement of Service. The service upon the State Attorney should be made more than twenty days prior to the date set for the hearing. A copy of the Order to Show Cause should be published in a newspaper of general circulation in the City once a week for three consecutive weeks, and the first publication must be more than twenty days prior to the date of the hearing. Please advise us by a letter of the hearing date and send us a copy of the Complaint after it has been filed, and the Order. We will prepare and send to you a suggested Final Judgment. If you or others receiving copies hereof have any questions please call me or Brenda Miller, our legal assistant. Sincerely, vw\ Jo A vi JAL:dk -278A -1896 Enclosures cc: Mr. Bob Harp (w /encl.) Mr. Joe Wise (w /encl.) 5 LIVERMORE KLEIN a LOTT P. A. f ATTORNEYS AT LAW 904/359 -0500 DANIEL U. LIVERMORE,JR. RICHARD E. KLEIN SUITE 225 RICHARD 1. LOTT 701 FISK STREET PATRICIA D. WHEELER JACKSONVILLE, FLORIDA 32204 MARK T. MUSTIAN JO ANN LEVIN September 24, 1984 CLAUDE L. MULLIS KATHRYN L.SANDS OF COUNSEL WILLIAM L. ZVARA John C. Randolph, Esq. Johnson, Sasser, Randolph do Weaver 310 Okeechobee Boulevard West Palm Beach, Florida 33402 Re: Village of Tequesta Water Refunding Revenue Bonds, Series 1984 Dear Skip: Enclosed for review by you and Joe Wise is a first draft of an ordinance authorizing the above Bonds. The ordinance provides for refunding the Series 1978 Bonds, but does not provide for any financing of capital projects. The ordinance is in substantially the same form as the Series 1978 Bond Ordinance with the following exceptions: 1. The ordinance authorizes, but does not require, an Insured Reserve Account, rather than a Funded Reserve Account. 2. The ordinance authorizes, but does not require, issuance of Capital Appreciation Bonds. 3. The ordinance permits investments of surplus funds under the Investment and Local Government Surplus Funds Act. 4. The terms permitting sale of the water system are not quite so detailed. 5. The ordinance calls for an annual report by the Village Manager, rather than a bi- annual report by the Consulting Engineer, respecting the current state of the system and any need for changes in rates. 6�� 7� LIVERMORE KLEIN €s LOTT, �. Page 2 6. The competing facilities clause permits competing facilities which do not materially adversely affect the revenues of the system. There is no particular reason for any of these changes, except that we have put similar provisions in several other utility ordinances recently. I would assume that we should have a meeting of the financing team at some point to discuss these and any changes which you, Village officials or Joe Wise want to suggest. Sincerely, ,_ /�C P'� V Daniel U. Livermore, Jr. DULJr /gs -278A -1896 Enclosures cc: Mr. Joe Wise William R. Hough & Co. a 6 LIVERMORE KLEIN 8 L.OTT, P. A. ATTORNEYS AT LAW DANIEL U. LIVERMORE,JR. 904/359 -0500 RICHARD E. KLEIN SUITE 225 RICHARD 1. LOTT 701 FISK STREET PATRICIA D. WHEELER JACKSONVILLE, FLORIDA 32204 MARK T. MUSTIAN JO ANN LEVIN KATHRYN L. SANDS CLAUDE L. MULLIS OF COUNSEL WILLIAM L. ZVARA August 28, 1984 John C. Randolph Johnston, Sasser, Randolph & Weaver 310 Okeechobee Boulevard West Palm Beach, Florida 33402 Re: Village of Tequesta Water Refunding Revenue Bonds, Series 1984 Dear Skip: This will confirm our telephone discussion pursuant to which I indicated that the $15,000 fee set out in the William R. Hough list of proposed expenses is acceptable to our firm for acting as bond counsel in connection with the refunding. In addition to the fee, we would like to bill for reimbursement for travel, copying and telephone expenses, which I anticipate would not exceed $3,000 - $5,000. As soon as I receive copies of the 1978 bond proceedings from Joe Wise, I will draft the jr proposed resolution authorizing the refunding for review by all parties concerned. r We a appreciate your calling on us for this issue, and I look forward to working with you and Joe on it. Sincerely, Daniel U. Livermore, Jr. DULJr:sc /600E cc: Joe Wise William R. Hough & Co. JOHNSTON, SASSER, RANDOLPH & WEAVER / ty- o o ATTORNEYS AND COUNSELORS AT LAW 310 OKEECHOBEE BOULEVARD HARRY A. JOHNSTON II WEST PALM BEACH, FLORIDA 33402 HENRY F. LILIENTHAL DONALD J. SASSER 1902 -1982 JOHN C. RANDOL P. O. BOX M HARRY ALLISON JOHNSTON H. ADAMS WEAVER R MAU REEN A. HACK ETT 1895-1983 ANN MARIE G. REZZONICO August 21, 1984 (305) 655 -0108 Daniel U. Livermore, Jr., Esq. Livermore, Klein & Lott, P.A. 701 Fisk Street Jacksonville, Florida 32204 Re: Tequesta Water Refunding Revenue Bonds, Series 1978 Dear Dan: As you'can see from the enclosed letter from Joe Wise, I recommended that you act as bond counsel in regard to the above refunding program. For your information, I am providing correspondence and documents previously provided to the Village of Tequesta from Joe Wise of William R. Hough & Co. As you will note from Joe's letter of August 16, 1984, he requests an estimate of your fee in regard to this matter. Please advise at your earliest convenience. Thank you. Very try1' ours, -40H C - RANDOLPH JCR /lsn , Enclosures 4"` Q l q A4, � /. Ulilham R.HOU &Co. THE FIRST AMERICAN BUILDING - SUITE 306 JOE B. WISE VICE PRESIDENT 701 U.S. HIGHWAY ONE RESIDENT MANAGER POST OFFICE BOX 14095 ANTHONY C. SOVIERO NORTH PALM BEACH, FLORIDA 33408 VICE PRESIDENT (305) 848 "8117 AU August 16 1 984 - C L" RK D. BENNETT 9 VICE PRESIDENT JUDY M. ROULIS REPRESE.NTA - nVE John C. Randolph, Esq. Johnston, Sasser & Randolph 310 Okeechobee Boulevard West Palm Beach, Florida 33402 RE: Refunding Program for Tequesta Water Refunding Revenue Bonds, Series 1978 ------------------------------------------ Dear Skip: Confirming my conversation with you and Bob Harp, your suggestion to use Livermore Klein & Lott as bond counsel for the above issue will be most acceptable to us. We have a long standing relationship with Dan Livermore and he is presently working with us on a Riviera Beach refunding program. I would appreciate an estimate of your fee and Livermore's fee for the purpose of refining our estimate of issuance expenses. Sincerely, WI IAM R. HOUGH & CO. JJ e B. Wise ice President and Resident Manager JBW /dg cc: Robert Harp STATE, COUNTY AND MUNICIPAL BONDS willia•F H. H OULL & Co. �Z VILLAGE OF TEQUESTA, FLORIDA PRELIMINARY SUMMARY OF A FINANCING PLAN TO REFUND THE OUTSTANDING. WATER REFUNDING REVENUE BONDS, SERIES 1978 There are three accepted methods for reducing annual debt service, namely: 1. Retire bonds prior to maturity 2. Refund the bonds at a lower interest rate 3. Advance refund the bonds through the more beneficial investment of the refunding bond proceeds, within the limit of current State and Federal regulations Likewise, there are three basic reasons to refund an outstanding bond issue: 1. To reduce net annual debt service 2. To improve on existing bond covenants 3. To restructure financial circumstances Option 1 In the case of the 1978 Water Refunding Revenue Bonds, the outstanding bonds, as a Baa /BBB credit, are valued at approximately $670.00 per $1,000 of par value. Since the issue is held primarily by a group of insurance companies whose invest- ments are directed by a central professional investment officer, who is aware of the likelihood of such an issue being refunded to Aaa /AAA escrowed bonds, the bonds would currently be appraised at approximately $730.00 per $1,000 of par value. Take into account the factor of negotiating for a substantial block of bonds and the likelihood is that a block of the bonds could probably be retired somewhere between 75 and 80% of par value. This is conjecture, but probably realistic in today's market. Assuming that the Water Department had approximately $1,000,000 of funds available for bond retirement and /or "any lawful purpose ", the Village could reduce its present Water Department debt by $1,335,000 and its annual debt service on the $2,855,000 of outstanding bonds by about $120,000 per year. This assumes that: • the Village has $1,000,000 of funds not needed for plant expansion or other purposes; and • the present holders of the outstanding bonds would agree to sell bonds at 78% of par value. Assuming that the $1,000,000 is invested at 12 %, such a transaction would be a "wash" in net results to the Water Department. 0 • will;am R. H01tQh.& Co. Village of Tequesta, Florida Page Two Option 2 Current interest rates preclude refunding the 6 3/4% bonds at a lower rate. This leads to Opti.on 3 , advance refunding the issue through reinvesting the refunding bond proceeds deposited into the escrow at a yield greater than the yield on the refunding bonds. ' Two weeks ago we distributed to you an analysis of this procedure, in somewhat condensed, but nevertheless complex language. The purpose of placing that informa - tion in your hands was to provide you with most of the basics, pro and con, of this method of refunding. It is not necessary that you fully understand every detail of every step of the very complex procedure. It is necessary that our experts, in calculations and regulations, as well as your staff and attorneys, understand and execute the procedures accurately. Basically, the bond proceeds created by the 1984 Refunding Revenue Issue may be invested at a rate greater than the rate on the bond issue, the differential permitted being sufficient to cover the costs of issuance of the 1984 issue. The existing debt service reserve fund of $268,000 is liquidated and its proceeds are added to the refunding escrow to the benefit of the refunded bonds. In place of the debt service reserve fund, refunding bond proceeds are used to purchase U.S. Treasury "SLGS" (State and Local Government Series) to establish a new debt service reserve fund for the 1984 refunding bonds, with these Treasuries becoming the new. debt service reserve. Schedule 4 shows the results of this proposal, based upon the marketplace on July 12, 1984. As you can see, the net savings is $618,586.94, future value savings. Present value savings is $400,000, assuming an investment rate of 10%. The major portion of the savings is realized over the first 12 years of the new issue. It is assumed that there will be some Capital Appreciation Bonds ( "0" coupon bonds), hence no interest payments after the year 2003. Market conditions will alter the savings, and the chance is ever present that existing IRS regulations could be changed in a manner adversely affecting this method of refunding. We have provided a form of agreement to be executed if it be the decision of the Village to. proceed, a Proposed Sequence of Events Schedule starting this week (Exhibit B), and an Estimated Issuance Expenses Table, which expenses are substan- tially recoverable from the yield on the escrow (Exhibit C). We believe it to be in the best interests of the Village to proceed with the proposed refunding, with the precise amount of the savings to be ascertained at the time of marketing, approximately mid- November. If approved, we would suggest that Bond Counsel be selected as soon as possible, so as to immediately proceed to implement the schedule of events. Our services are on a contingent basis, as clearly stated in Section 2 -F of our Agreement, and there are no consultant fees since we are acting as principal in the purchase of the bonds, if the purchase proposal is accepted. Prepared by: Joe B. Wise, Vice President WILLIAM R. HOUGH & CO. William H. Hough &Co. THE FIRST AMERICAN BUILDING JOE B. WISE SUITE 306 VICE PRESIDENT RESIDENT MANAGER 701 U.S. HIGHWAY ONE ANTHONY C. SOVIERO POST OFFICE BOX 14095 - VICE ['RESIDENT NORTH PALM BEACH, FLORIDA 33408 CLARK D. BENNETT (305) 848 -8111 p VICE PRESIDENT August 2, 1 (t 704 JUDY M. ROULIS REPRE5E,NTATIVE Honorable Mayor and Members of Village Council Village of Tequesta, Florida Post Office Box 3273 Tequ -esta, Florida 33458 Honorable Mayor and Members of Council: William R. Hough & Co, is pleased to submit to the Village Council the follow- ing proposed agreement under which William R. Hough & Co. will serve as Investment Banker to the Village of Tequesta in connection with such proposed capital improve- ments financing and /or bond refunding programs as may hereafter be authorized by the Village. 1. INTRODUCTION A. This Agreement between the Village of Tequesta, Florida and William R. Hough & Co. concerns the services to be rendered by William R. Hough & Co. to the Council, compensation for such services, and related expenses for the proposed issuance and sale of the Village's Bonds or Bond Anticipation Notes ( "Notes "). B. The parties agree that Bond Counsel shall be a law firm acceptable to both the Village and William R. Hough & Co. 2. SERVICES TO BE PERFORMED BY WILLIAM R. HOUGH & CO. AS INVESTMENT BANKER A. William R. Hough & Co, will assist the Council, the Village Manager, Finance Director, Village Attorney and other staff members or consultants of the Village in developing a Financing Plan or Plans for consideration of, and approval by, the Village Council. Such Financing Plan(s) shall be developed within the framework of the 'short and long -term objectives of the Village. B. Upon acceptance of a Financing Plan by the Council, William R. Hough & Co., after consultation with appropriate Village Officials, will prepare and submit to the Village Attorney and the Bond Counsel for the Village, all of the information and details necessary for preparation of the Authorizing Resolution /Ordinance, Validation Papers, and other documents required for the successful issuance and sale of the Bonds or Notes. STATE, COUNTY AND MUNICIPAL BONDS uliliian3R.Nouoh � Co_ The Mayor and Members of Village Council Village of Tequesta August 2, 1984 Page Two C. Assist the Village Attorney with the validation proceedings, and attend the validation hearing if requested to testify for the Village as an expert witness on the Financing Plan. D. In cooperation with the appropriate Village Officials, William R. Hough & Co. will prepare Official Statement(s) fully describing the proposed Bonds or Notes. Hough and the Village agree to use due diligence to determine and disclose all material facts affecting the Bond or Note Issues in the Official Statement(s) in conformance with present full disclosure guidelines as promulgated by the Municipal Finance Officers Association. E. Supply the necessary information and consult with the two ma- jor bond rating agencies and /or municipal bond insurors to obtain the best possible rating on the Bonds or Notes if such rating or insurance is determined necessary to effect or enhance the financing program. F. After validation of the Bonds and expiration of the appeal period William R. Hough & Co. will, within a period not ex- ceeding two weeks thereafter, or at such mutually agreeable time thereafter, submit a firm purchase proposal to the Village for the purchase of the Bonds or Notes. Such proposal will set forth the purchase price and the terms and conditions of the sale of the Bonds or Notes. This proposal will be accompanied by a good faith check in the amount of 2% of the par value of the issue. The proposal will specify the time allowed for the Village to accept or reject the proposal. At the time of submission of such proposal Hough will present to the Village evidence of the fairness of the proposal together with data on comparable bond or note issues being marketed at that time. Hough and the Village hereby agree to attempt to negotiate, in good faith, satisfactory terms for the sale of the Bonds or Notes. It is clearly understood that if the Village sells the Bonds or Notes to Hough in accordance with this paragraph Hough will not be paid any fee as financial consultant since its compensation with respect to this financing is intended to be solely through purchasing and selling the Bonds or Notes at a profit. The usual components and underwriters profit will be fully disclosed and negotiated to the satisfaction of the Village at the time the purchase proposal is presented. These components include: Management Fee, Underwriters Expenses, Average Takedown (selling concessions) and Under- writers Risk Profit. NcLOh & Co. The Mayor and Members of Village Council Village of Teyuesta August 2, 1984 Page Three G. If the purchase proposal is accepted by the Village, William R. Hough & Co. will: (1) Arrange for the printing, signing, and delivery of the Bonds or Notes. (2) Provide the Village with a final amortization schedule for the Issue. (3) If desired by Village, implement the investment of Bond or Note proceeds until needed for dis- bursement. (4) Prepare an annual report on the Bonds or Notes which will be made available to institutional holders of the Bonds or Notes and other interest- ed parties. H. The Village Council is under no obligation to accept the pur- chase proposal, and if the purchase proposal is rejected and the Village elects to sell the Bonds or Notes by either competitive public sale or direct placement, William R. Hough & Co. shall act as the V i l l a g e ' s Financial Consultant for a fee mutually agreeable to both parties. 3. EXPENSES Expenses incident to the issuance of the Bonds or Notes, including out -of- state travel expenses of William R. Hough & Co. but excluding other travel and communications expenses of William R. Hough & Co., will be paid by the Village. In lieu of paying for the cost of having the Official Statement typeset and printed by a printing firm, the Village may direct William R. Hough & Co, to prepare the Official Statement and have the same completed by use of the photo - offset method. If 'the Village so directs, William R. Hough & Co, shall prepare said Official Statement and have the same completed by use of the photo- offset method at a cost to the Village of $75.00 per page, payable to William R. Hough & Co., plus the cost of the photo- offset printing. In the event it becomes S necessary to utilize computers in structuring a particular Bond or Note issue of the Village, the Village may direct William R. Hough & Co, to perform the necessary computer computations. If so directed, William R. Hough & Co. shall perform all necessary computer operations at a cost to the Village of the greater of $1.00 per thousand dollars of par amount of any Bonds or Notes issued, or $10,000. William N. H0006& Co. The Mayor and Members of Villaye Council Village of Teyuesta August 2, 1984 Page Four 4. COMPENSATION A. As Investment Banker, William R. Hough & Co. shall not be' entitled to any fee for services rendered (pursuant to Section 2 subsection F above). B. If the Bonds or Notes are sold to an agency of the United States Government or to the State of Florida or an agency thereof, William R. Hough & Co. will be paid the appropriate financial consulting fee. C. If, for reasons other than those stated above, the Village determines not to sell the Bonds or Notes, it shall be under no obligation to pay compensation to William R. Hough & Co. for services rendered. 5. DIRECT PLACEMENT BY WILLIAM R. HOUGH & CO. AS AGENT FOR THE VILLAGE A. At the direction of Council, William R. Hough & Co. may directly place the Bonds or Notes with institutional and other investors. B. The fee for direct placement service will be negotiated at the time of the direct placement, on terms acceptable to the Council. The placement fee is for services beyond those ordinarily performed by an Investment Banker. 6. DURATION OF THIS AGREEMENT A. This Agreement w i l l remain in effect until terminated by the Village, or may be terminated by either party for cause, upon 60 days prior written notice. lU�ali, m oucn & Co. The Mayor and Members of Village Council Village of Teyuesta August 2 , 1984 Page Five B. Any party failing to meet the terms of this Agreement will pay all expenses and attorney's fees incurred by the other party as a result of any defaults. Respectfully submitted, WILLIAM R. HOUGH & CO. J e B. Wise ice President and Resident Manager ACCEPTED BY: VILLAGE OF TEQUESTA, FLORIDA. By ATTEST: DATE ACCEPTED: • WiNiaisi h_ Houck cC "Co_ 0 EXHIBIT B VILLAGE OF TEQUESTA PROPOSED SEQUENCE OF EVENTS SCHEDULE 1984 REFUNDING PROGRAM, WATER DEPARTMENT BONDS Week of Review & Discussion of Preliminary Financing Plans July 30 Finalize Financing Plans Aug. 13 Financing Plans Approved by Village Council Aug..27 Consulting Engineer Begin Summary Report Aug. 27 Bond Counsel Begins Preparation of Resolution Aug. 27 = Comment Drafts of Resolution Circulated Sept. 24 Bond Resolutions Finalized & Distributed Oct. 1 Village Council Passes Bond Resolution Oct. 8 Village Attorney Files for Validation Oct. 8 Investment Bankers Begin Preliminary Official Statement Oct. 22 Circulate "Comment Draft" of Preliminary Official Statement Oct. 22 Validation Hearing . Oct. 29 or Nov. 5 Complete Preliminary Official Statement Oct. 29 Formal Request for Ratings and MBIA Insurance Oct. 29 Distribute Preliminary Official Statement Oct. 29 Presentation to Rating Agencies and MBIA in New York Nov. 5 or 12 Validation Appeal Period Expires Nov. 26 or Dec. 3 Ratings and Insurance Commitment Received Nov. 12 or 19 Selection of Escrow Agent & Registrar Nov. 12 Purchase of Bonds Nov. 19 Verification of Refunding Numbers Nov. 12 Submit "SLUG" Subscriptions to Fed Nov. 12 Begin Printing of Bonds Nov. 12 Make Arrangements for N.Y. Closing Nov. 12 "Due Diligence" by Underwriter's Counsel Nov. 12 Auditor's and Engineer's "Comfort Letters" Received Nov. 12 Revise and Finalize Official Statement Nov. 19 or 26 Final Official Statement Printed and Shipped Nov. 19 or 26 Closing and Delivery of Bonds in New York Nov. 26 or Dec. 3 Prepared by: Joe B. Wise August 1, 1984 wilkam H. HaJoh & Co. • EXHIBIT C VILLAGE OF TEQUESTA, FLORIDA PROPOSED WATER REVENUE REFUNDING BO`NID ISSUE, 1984 ESTIMATED ISSUANCE EXPENSES Bond Counsel $15,000 Local Counsel 10,000 Consulting Engineer 5,000 Computer Fee 20,000(1) Local CPA 4,000 CPA Verification 5,000 Printing of Bonds 1,500 Printing of Official Statement 7,000 Bond Rating 5,000 Signature Company 500 City Travel Expense 1,000 Closing 2,000 Escrow Agent's Fee 5,000 Paying Agent & Registrar's Fee 2,500(2) Contingency* 6,500 TOTAL $90,000 (1) Subject to change. (2) "Up- front" fees. • William H. Hough & Co. THE FIRST AMERICAN BUILDING JOE B. WISE SUITE 306 VICE PRESIDENT RESIDENT MANAGER 701 U.S. HIGHWAY ONE POST OFFICE BOX 14095 July 20, 1984 ANTHONY C.SOVIERO VICE PRESIDENT NORTH PALM BEACH. FLORIDA 11408 JUDY M. ROULIS 1305) 848$111 REPRESENTATIVE Mr. Robert Harp Village Manager Village of Tequesta P. 0. Box 3273 Tequesta, Florida 33458 Dear Bob: pursuant to our conversation last week, enclosed please find ten copies of our "Refunding Analysis for Outstanding Water Refunding Revenue Bonds, Series 1978 ". Under, General Comments Concerning This Refunding Analysis, we have outlined the basic reasons for refunding, explained some of the constraints and presented two basic approaches to refunding. We have then structured a refunding program for Tequesta's 1978 Water Revenue Issue providing the maximum advantages without the disadvantages of each of the two approaches. Admittedly, the explanation of "how it works" is complex and difficult to follow, at best. The bottom line is that if the issue had been marketed on July 12, 1984 the difference in net debt service between the outstanding issue and the projected refunding issue is $618,586.95, Net Future Value Savings, which translates to $400,115.56 of Net Present Value Savings. This is a most worthwhile savings in dollars and in addition, there may be provisions in the existing bond resolution which may be amended or changed, if desired. It certainly seems evident that the Village should take advantage of this opportunity to reduce current annual debt service on its bonds. At our mutual convenience, we will be pleased to present the ANALYSIS to your Council and staff. The complexity of the issue lends itself to workshop and special meetings rather than taking time from your regular Council meeting agenda. We look forward to hearing from you in the very near future. Sincerely, WI IAM R. HOUGH & CO. JUL 2 3 oe B. Wise 16 ice President and Resident Manager JBW /dg �;. 1� cc: Evan WaP j STATE. COUNTY AND MUNICIPAL. BONDS VILLAGE OF TEQQUESTA, FLORIDA REFUNDING ANALYSIS FOR OUTSTANDING WATER REFUNDING REVENUE BONDS SERIES 1978 two L William I Houlh & Ce. G nrr 1%1& . / T7 GENERAL COMMENTS CONCERNING THIS REFUNDING ANALYSIS An issuer may choose to refund an outstanding bond issue for one or more of several reasons: • To extinguish the existing bond covenants and substitute new, more satisfac- tory covenants; • To alter the debt payment structure in order to more efficiently time re- ceipt of revenues with payment of debt; • To realize net debt service savings. Perhaps the most significant reason for issuing refunding bonds is to realize savings in the form of lower debt payments. Savings generally occur when interest rates have declined subsequent to the issuance of the outstanding bonds, and the refunding bonds are issued at a lower net interest cost than the out- standing bonds. The realization of savings and the extent of those savings are dependent upon several factors, including the costs incurred in the issuance of the refunding bonds (which are recoverable in substantial part), the timing of the retirement of the outstanding bonds and the efficiency of the investment of the refunding bond proceeds that will be used to pay the outstanding bonds. c The legal effect of issuing refunding bonds is the satisfaction of the issuer's obligations to its existing bondholders. This satisfaction, or defeas- ance, is accomplished by taking the proceeds derived from the sale of the refunding bonds and investing them in debt obligations of the United States. In order to defease the outstanding bonds, it is necessary to have sufficient proceeds of the refunding bonds to invest in United States obligations such that i those obligations, together with interest earnings (in the case of most refunding bonds issues) are sufficient to pay the interest and principal of the outstanding bonds. Because the proceeds of the refunding bonds, as invested, satisfy the issuer's requirement of paying the principal of and interest on the outstanding bonds, the issuer is able to use the revenues or funds previously pledged to pay debt service on the outstanding bonds to pay the debt service on the new refund- ing bonds. The structuring of a refunding bond issue is subject to several considera- tions and constraints. The primary consideration with respect to the structuring of a refunding is compliance with Federal tax law. The Internal Revenue Service has promulgated strict and complex rules and regulations that pertain to the issuance of municipal refunding bonds. Although these rules and regulations are complex in their application, their general concept is - straightforward: an issuer cannot invest the proceeds of a refunding bond issue at a yield in excess of the yield on the refunding bonds. In other words, it is impermissable to in- vest the monies received from the sale of the refunding bonds at a rate that is higher than the rate on the refunding bonds. It is a simple concept, but one which is complex in its application. There are questions as to the method for calculating yields on both the refunding bonds and the escrow into which the pro- ceeds of the refunding bonds are deposited. There are many different factors that affect these yields, including the timing of interest payments and invest- ment rates on the escrow investments. There are questions concerning the deter- mination of what constitutes proceeds of the refunding bonds, for while other funds may be used to fund the escrow, it is only proceeds of the refunding bonds which are restricted as to their investment yield. And there are, of course, other issues just as complex which must be addressed whenever an issuer under- takes a refunding. One consideration, relative to advance refundings, which has recently rec- eived a great deal of attention is the concept of refunding outstanding bonds that were issued in conjunction with an invested sinking fund. Because of a change in Federal tax regulations there have not been any issues with invested sinking funds sold since May, 1978. However, it is possible at the present time to issue refunding bonds to defease a prior issue that has an invested sinking fund and obtain a benefit in terms of debt service savings. This benefit results from being able to invest refunding bond proceeds deposited into the escrow at a yield greater than the yield on the refunding bonds, thereby reducing the amount of refunding bonds that need to be issued. This in turn reduces the debt service payments of the issuer. The reason that refunding bond proceeds may be invested at such higher yield is due to an adjustment that is made in the form of taking into account the lower yield (relative to the yield on the refunding bonds) that the issuer will receive on the U.S. Treasuries to be purchased subsequent to the closing of the refunding bonds. There are two basic approaches to an invested sinking fund refunding. One approach requires that the benefit derived from the future purchases of U.S. Treasuries pursuant to the invested sinking fund contract accrue to the escrow established to pay off the outstanding bonds. This goal is achieved by issuing sufficient refunding bonds to purchase State and Local Government Series Trea- suries for the escrow which in turn mature in time for their proceeds to be used to purchase the remaining Invested Sinking Fund (ISF) Treasuries. The advantage to this approach is that it provides the issuer with greater flexibility relative to rescheduling and reshaping its debt structure. This is because the issuer no longer must provide for the purchase of the ISF Treasuries from revenues. The disadvantage to this approach is that until all the future Treasuries are pur- chased, the issuer only has an "economic defeasance" rather than a "legal defea- sance". As a consequence, the refunding bonds are still subject to the provi- sions of the existing indenture and the majority of bond counsel firms will not issue an opinion that the outstanding issue is defeased. A number of plans have been advanced to deal with this situation, but none to date appear to be completely satisfactory from either the underwriter's or the issuer's standpoint. The second approach requires that the future purchases of the ISF Treasuries be made from revenues of the issuer. The benefit from these Treasuries flow to (� the refunding bonds. The advantage to this approach is that the issuer achieves [' a legal defeasance and, therefore, freedom from the constrictions of the existing indenture. The disadvantage is that the required future purchases of ISF Trea- surys must be made from revenues. This severely hampers the ability to re- schedule and restructure the existing debt structure and often makes it impos- sible for the issuer to receive the savings benefit of.the refunding in the first five to seven years where it is generally most welcome. In response to this dilemma, our firm, in conjunction with nationally recog- nized bond counsel, has constructed a refunding which appears to provide the �l advantages of both methods without the disadvantages of either. The structure J that our firm is proposing consists of four principal components: 1. Treasury Bonds purchased for the Invested Sinking Fund prior to the closing date are sold, reinvested in stripped Treasury Coupons or "TIGR's" and placed in the refunding escrow, long, for maximum PU benefit. • i 2. The existing Reserve Account and the already purchased invested sinking fund investments are liquidated and reinvested in stripped Treasury Coupons or "TIGR's" and placed in the refunding escrow, long, for maximum benefit. Funds on hand, in the Principal Account and the Interest Account are also invested in TIGR's for the refunding escrow. 3. Refunding Bonds proceeds are used to purchase Treasuries (State and Local Government Series) in amounts sufficient to provide for the remaining amount of funds required to fully fund the refunding escrow and to fund a Debt Service Reserve. 4. The Treasuries (State and Local Government Series) deposited into the debt service reserve are scheduled to mature on the purchase dates of, and are used to purchase, Treasury Bonds required to be purchased for the Invested Sinking Fund subsequent to the closing date, which Treasury Bonds, when so purchased, are deposited into the Debt Service reserve in lieu of the treasuries (State and Local Government Series). The key to our proposal is that the existing debt service reserve is liqui- dated and its proceeds are placed in the refunding escrow to the benefit of the refunded bonds. In its place, refunding bond proceeds are used to purchase Treasurys (State and Local Government Series) to establish a new debt service reserve for the refunding bonds. In turn, these Treasurys are designed to come due in time to make the future purchases of a portion of the ISF Treasurys. These Treasurys become the new debt service reserve. The remaining ISF Trea- surys (that amount which exceeds a reasonably required reserve) are purchased with revenues. All of the benefits of the future ISF Treasurys accrue to the refunding bonds. As is demonstrated in Exhibit I - Schedule 4, such a structure allows the major part of the savings on the refunding to be realized in the first 12 years of the new issue. It has the additional benefit of significantly reducing the cost of the escrow required to retire the outstanding bonds. Most rn significantly, this structure is a legal defeasance. FURTHER CONSIDERATIONS In an Invested Sinking Fund refunding, as in any other refunding, the ultimate size of the refunding issue is dependent upon the cost of the res- tricted portion of the escrow established to meet the debt service requirements of the outstanding issue. This in turn is dependent upon the ability to obtain a rate of return on the U.S. Treasury State and Local Government Series securities used in the escrow equal to the arbitrage yield calculated on the refunding bonds. The rates of return available on the State and Local Govern- ment Series (SLGS) are established by the Treasury to track current yields on treasury obligations traded on the open market. Normally, the spread between the market rates on the municipal bonds and the market rates on treasury obli- gations are sufficient to allow a yield on the refunding escrow equal to the allowable yield on the refunding bonds. Sometimes, however, due to the addi- tional yield realizable on the refunding escrow from the allowable yield meld on an invested sinking fund refunding such as this one, an escrow structured to meet the arbitrage regulations promulgated by the Internal Revenue Service cannot produce enough return to equal the arbitrage yield on the proposed refunding bonds. This condition is referred to as a "market limited escrow." • l Because we believe that the particular structure of the escrow required to effectuate a defeasance in this case increases the probability of a market limited situation, prudence would dictate that the underwriter chosen to structure and market this refunding should endeavor to insure that the Issuer is not put into a disadvantageous position by an unexpected movement in the bond market prior to closing. Should such a circumstance occur, however, there is a technique known as a "Triple Meld" which can help recover most of the lost savings due to a market limited escrow. To render this method effective, the refunding proceeds used to ' establish the new refunding debt service reserve are invested for the life of said reserve in State and Local Government Series securities at the highest available rate. The yield on this reserve is then "melded" with the yield on G the restricted portion of the refunding escrow to comply with current I.R.S. arbitrage regulations. The benefit to this method is that the long rates on the ( State and Local Government Series securities are currently higher than the int- erest rate on the Future ISF Treasuries, thereby allowing the issuer to recover some of the lost earnings from the restricted portion of the refunding escrow over the life of the issue. The disadvantage is that once the new refunding debt service reserve is invested in State and Local Government Series securities and the yield meld is performed, the debt service reserve is locked in to said securities for the life of the reserve. EXHIBIT I The schedules attached to Exhibit I demonstrate a typical structure and savings obtainable by use of the technique described above assuming an escrow without any market limit. For this exercise we have used the insured AAA rated scale. Schedule 1 provides a Sources and Uses of Funds and a Summary of Savings. Most interesting to the issuer are the savings, which are $618,586.95 in future value and $400,115.56 in present value (or today's dollars). Schedule 2 depicts the net outstanding debt service on a fiscal year basis. This schedule details all of the cash flows which affect the outstanding Water Refunding Revenue Bonds, Series 1978 including the income generated by the investment of the existing debt service reserver This latter inclusion is important for an equitable comparison of refunding versus refunded net debt service for savings. Schedule 3 demonstrates the cash flow requirements of the proposed refund- ing bond issue. It should be noted that the column entitled "Plus Cost To Pur- chase Future ISF Treasurys" reflects only that portion of the cost required to be funded from revenues. The balance of the future purchases are made by the receipts from maturing State and Local Government Series Treasurys purchased with bond proceeds and placed in the new debt service reserve. The income from these future purchases are depicted in the column entitled "Less Income From Debt Service Reserve at 7.625 %." Schedule 4 shows the savings attributable to this technique. Note that debt service, net of funds from existing Principal, Interest and ISF Accounts invested in the escrow, produces the most savings which occur primarily in the first half of the life of the refunding issue. Should the Issuer desire, there are techniques which can push the obtainable savings earlier in the life of the refunding issue. VILLAGE OF TEQUESTA, FLORIDA Schedule 1 REFUNDING ANALYSIS FOR OUTSTANDING WATER REFUNDING REVENUE BONDS, SERIES 1978 Sources and Uses of F unds Sources Par Amount of Bonds $ 2,855,000.00 Proceeds from Liquidation of General Reserve Account 268,414.11 Proceeds from Liquidation of Existing Invested Sinking Fund Investments 559,932.69 Accrued Interest in Sinking Funds Account 88,087.50 TOTAL SOURCES $ 3,771,434.30 Uses - Cost of Refunding Escrow $ 2,230,954.72 Deposit to Reserve Account 251,515.84 AMBAC Insurance Premium 43,447.79 Issuance Expenses 90,000.00 Underwriter's Spread 45,452.51 Original Issue Discount 1,107,437.35 Contingency 2,626.09 TOTAL USES $ 3,771,434.30 Sumary of Savings Net Outstanding Debt Service (Schedule 2) $ 5,102,810.49 Less Debt Service Reserve and Interest Earned Thereon (Schedule 2) (671,022.37) Total Net Outstanding Debt Service (Schedule 2) $ 4,431,788.12 Gross Refunding Debt Service (Schedule 3) $ 5,430,973.96 Plus Cost of Future Invested Sinking Fund Investments Purchased from Revenues (Schedule 3) 714,785.27 Less Income on Future Invested Sinking Fund Investments (Schedule 3) (1,683,725.00) Less Income from Debt Service Reserve (Schedule 3) (690,665.63) Less Income from Debt Service Reserve SLGS (Schedule 3) (46,254.93) Total Net Refunding Debt Service (Schedule 3) $ 3,725,113.67 Gross Savings $ 706,674.45 Less Existing Sinking Fund Moneys Applied to Escrow (88,087.50) Net Future Value Savings (Schedule 4) $ 618,586.95 Net Present Value Savings (Schedule 4) $ 400,115.56 xnesuie 1 Sctlideli Df Net bebt Sire a on Meter Refuting Re� Dods, Serves 1478 N!t Ser►ici Calnlation Date: 4!01/1484 (ststmeding Debt Service Reserve. 268,248.00 NJ hrchased Invested Sinking Fund: 885,000.00 Annualired Less Total Net Bross Income From Plus Cost less Income On Less Income On Outstanding Debt Service Debt Service To Purchase Existing ISF Future ISF Total Net Debt Service Period Outstanding Coupon Interest Before Reserve Reserve At Future ISF Treasurys At Treasurys At Outstanding Not Including Ending Principal Rate Expense Earnings 7.7000001 Treasurys 7.6250001 7.6250001 Debt Service Reserve Income 10/ 1/84 132,131.25 132,131. 10,327.55 37,977.54 33,740.63 126,040.62 136,368.17 4/ 1195 132,131.25 132,131.25 10,327.55 33,:58.75 33,740.63 1,525.00 119,796.83 10/ 1/85 132,131.25 132,131.25 10,327.55 37,977.54 33,740.63 2,859.38 123,181.24 263,633.17 4/ 1/86 132,131.25 132,131.25 10,327.55 37,967.14 33,740.63 4,384.38 121,645.84 101 1186 132,131.25 132,131.25 10,327.55 42,687.23 33,740.63 5,909.38 124,840.93 267,141.97 41 1 /87 132,131.25 132,131.25 10,327.55 42,675.54 33,740.63 7,625.00 123,113.62 10/ 1187 132,131.25 132,131.25 10,327.55 42,687.23 33,740.63 9,340.63 121,409.68 265,178.40 4/ 1/88 132,131.25 132,131.25 10,327.55 47,391.80 33,740.63 11,056.ZS 124,398.63 10/ 1 /88 132,131.25 132,131.25 10,327.55 47,386.56 33,740.63 12,962.50 122,481.14 267,540.96 4/ 1189 132,131.25 132,131.25 10,327.55 47,373.40 33,740.63 14,868.75 120,567.73 101 1/89 132,131.25 132,131.25 10,327.55 52,083.82 33,740.63 16,775,00 123,371.90 264,594.72 4/ 1190 132,131.25 132,131.25 10,327.55 56,775.44 33,740.63 18,871.88 125,966,64 ID/ 1190 132,131.25 132,131.25 10,327.55 52,106.61 33,740.63 21,159.38 119,010.31 265,632.05 4/ 1/91 132,131.25 132,131.25 10,327.55 61,509.11 33,740.63 23,256.25 126,315.94 10/ 1/91 132,131.25 132,131.25 10,327.55 56,816.31 33,740.63 25,734.38 119,145.01 266,116.05 4/ 1/92 132,131.25 132,131.25 10,327.55 66,228.52 33,740.63 28,021.88 126,269.72 101 1192 132,131.25 132,131.25 10,327.55 66,235.69 33,740.63 30,690.63 123,608.14 270,532.96 4/ 1/93 112,131.25 132,131.25 10,327.55 66,217.50 33,740.63 33,359.38 120,921.20 10/ 1/93 132,131.25 132,131.25 10,327.55 70,945.38 33,740.63 36,028.13 122,960.33 264,556.63 41 1/44 70,000 6,7501 132,131,25 202,131.25 10,321,55 33,740.63 38,887.50 119,175.58 10/ 1/94 75,000 6.7501 129,768.75 204,768.75 10,327.55 33,740.63 38,887.50 121,813.08 261,643.75 4/ 1195 90,000 6.7501 127,237.50 207,237.50 10,327.55 33,740.63 38,887.50 124,281.83 101 1195 80,D00 6.7501 124,537.50 204,537.50 10,327.55 33,740.63 38,887.50 121,581.83 266,519.75 4/ 1/96 90,000 6.7501 121,837.50 201,837.50 10,327.55 33,740.63 38,887.50 118,881.83 10/ 1;96 85,000 6.7501 119,137.50 204,137.50 10,327.55 33,740.63 38,881.50 (21,181.91 260,719.75 41 1/97 90,000 6.7501 116,268.75 206,269.75 10,327.55 33,140.61 38,881.50 lc ,313.08 101 11 90,000 6.7501 113,231.25 203,231.25 10,327.55 33,740.63 38,887.50 120,215.59 264,243.75 4/ 1/98 95,000 6.7501 110,193.75 205,193.15 10,327.55 33,740.63 38,887.50 122,238.08 10i 1/98 95,000 6.7501 106,987.50 201,987.50 10,327.55 33,740.63 38,887.50 119,031.83 261,425.00 4i 1/99 100,000 6.7501 103,191.25 203,781.25 10,327.55 33,740.63 38,887.50 120,825.58 101 11 105,000 6.7501 100,406.25 205,406.25 10,327.55 33,140.63 38,887.50 122,450.58 263,931.25 4i ;100 105,000 6,7501 96,862.50 201,962.50 10,327.55 33,740.63 38,881.50 118,906.83 101 1100 110,000 6.7501 93,318.75 203,318.75 10,327.55 33,740.63 39,881.50 120,363.08 259,925.00 4/ 1 /01 115,000 6.7501 89,606.25 204,606.25 10,327.55 33,740.63 38,887.50 121,650.58 10/ 1/01 120,000 6.7501 85,725.00 205,725.00 10,327.55 33,740.63 38,987.50 122,'•69.33 265,015.00 4/ 1 i02 120,000 6.7501 81,675.00 201,675.00 10,327.55 33,740.63 38,887.50 118,719.37 10; 1 /02 130,000 6,7501 77,625.00 207,625.00 10,327.55 31,740.63 38,587.50 124,669.31 264,043.15 41 1/03 130,000 6.7501 13,237.50 203,237.50 10,327.55 33,140.63 38,987.50 120,281.83 10/ 1103 135,000 6.7501 68,850.00 203,850.00 278,575.55 33,740.63 38,587.50 ( 147,353.67) 261,331.25 412 1104 64,293.75 64,293.75 33,740.63 38,887.50 i 8,334.38) 10/ 1104 64,293.75 64,293.75 33,740.63 38,897.50 1 8,334.38) ! 16,663.'51 4/ 1,105 64,293.75 64,293.75 33,740.63 38,987.50 i 8,334.381 IOi 1/05 64,293.75 64,293.75 33,740.63 38,987.50 ( 9,334.38) ( 16,668.751 4/ 1/06 64,293.75 64,293.75 33,740.63 38,887.50 l 8,334.38) 101 1/06 64,293.75 64,293.75 33,740.63 39,987.50 ( 9,334.39) 16,668.751 4/ 1 /07 1,905,000 6.7501 64,293.75 1,969,293.. 918,740.63 1,058,881.50 i 8,334.38! -. , -- ---- - - - -- - -- -- --- - - ---- - ---- ---- -- - -- ----- --- -- - - -- -------- - - - - -- -- --- --- - - - - -- -------- - - - - -- -------- - - - - -- ----------- Total 3,915,000 5,032,968.75 9,941,968.75 671,022.37 966,301.11 2,437,068.75 2,374,390.63 4,431,788.11 5,102,810.49 ,' . • City e4 Te"nts, Florida . Scledulc I Schmdmle BF Mt pelt Service on 1981 Re4on"a' Bonds Mt service Calculation Bate. 8/01/1984 New pelt service Reserve: 265,000.00 Invested Sinking Fund: 755,000.00 Total Combined Reserve 1,020,000.00 Annuaii:ed Less Total Net Gross Income From Less Plus Cost Less Incase On Less Income On Refunding Debt Service Debt Service Income From To Purchase Existing ISF Future ISF Total Net Debt Service Period Refunding Coupon Interest Before Reserve Reserve At Debt Service Future ISF Treasurys At Treasurys At Refunding Not including Ending Principal Rate Expense Earnings 7.6250001 Reserve SLGS Treasurys 7.6250001 7.625000% Debt Service Reserve Income 10' 1i84 27,398.96 27,398.96 4,180.45 .3,219.51 23,218.51 4/ 1165 82,196.88 82,196.98 1,525.00 12,901.36 67,770.52 101 1 /B5 82,196.89 82,19638 2,859.38 10,358.24 68,979.26 141,134.15 4i 1166 82,196.88 92,196.88 4,364.38 8,180.88 69,631.62 101 1/86 82,196.88 82,196.86 5,909.38 5,997.78 7C,289.12 150,215.09 41 1181 82,196.88 82,196.88 7,625.00 3,544.67 71,02;.21 10/ 1/87 82,196.08 82,196.88 9,340.63 1,091.55 23,715.13 95,419.83 163,472.66 4/ 1/88 82,196.00 82,196.88 10,103.13 47,391.80 953.13 118,532.43 10/ 1/88 82,196.88 02,196.86 10,103.13 47,386.56 2,859.38 116,620.94 :55,359.61 4/ 1 ,199 82,196.88 82,196.88 10,103.13 47,373.40 4,765.63 114,701.53 10/ 1/89 92,196.88 82,196.88 10,103.13 52,083.82 6,S71.88 117,505.70 252,413.41 4/ 1190 82,196.88 82,196.88 10,103.13 56,775.44 8,768.75 120,100.44 10/ 1190 82,196.68 82,196.88 ;0,103.13 52,106.61 11,056.25 113,144.11 253,450.90 4/ 1191 82,196.88 82,196.96 10,103.13 61,509.11 13,153.13 120,449.74 ]0/ 1/91 82,196.88 82,196.88 10,103.13 56,816.31 15,631. 25 113,278.81 257,934.90 41 1/92 82,196.88 82,196.98 10,103.13 66,228.52 17,918.75 120,403.52 10/ 1/92 82,196.08 82,196.88 10,103.13 66,235.69 20,587.50 111,741.94 258,:51.7; 41 1/93 92,196.88 92,196.88 10,103.13 66,217.50 23,256.25 115.055.00 10/ 1/93 82,196.88 82,196.86 10,103.13 70,945.38 25,925.00 117,114.13 252,375.39 4/ 1/94 02,196.89 82,196.88 10,103.13 28,784.38 43,309.38 l0i 1194 82,196.68 82,196.88 10,103.13 29,794.38 43,309.38 106,525.06 41 1195 82,196.88 92,196.88 10,103.13 28,784.38 4;,309.39 10/ 1/95 5,000 9.4001 82,196.88 81,196.88 10,103.13 29,784.38 48,309.38 11l,925.0v 4/ 1,196 75,000 9.6001 81,961.88 156,961.88 10,103.13 29,784.38 1:6,074.38 101 li96 80,000 9.6001 79,361.88 158,361.Be 10,103.13 28,784.35 119,474.:8 251,155.00 4i 1/97 85,000 9.0001 74,521.88 159,3"1.88 10,103.13 28,784.38 120,634.38 101 U97 85,000 9.600% 70,356.811 155,356.88 10,103.13 28,784.38 116.469.38 310. H. 4i 1/98 90,000 9.9001 66,191.88 156,191.ae 10,103.13 2B,784.38 117,304.38 101 1;98 95,000 9.9001 61,736.88 156,736.80 10,103.13 28,794.38 117,849.39 255,36:.:0 4/ 1199 100,000 10.0001 57,034.38_ 157,034.38 10,103.13 29,784.38 118,146.68 10/ 1/99 105,000 10.0001 52,034.38 157,034.38 10,103.13 29,784.38 118,146.88 '_56,50d.0 4/ 1/00 110,000 10.0001 46,784.36 156,784.38 10,103.13 26,784.38 117,896.68 10,1 1100 115,000 10.000% 41,284.38 156,264.38 10,103.13 29,794.38 117,396.88 255,500.00 41 1 /01 125,000 10.3751 35,534.38 160,534.38 10,103.13 28,784.38 121,646.98 10/ I /01 130,000 10.373% 29,050.00 159,050.00 10,103.13 29,784.38 120,1c2.50 262,015.63 4/ 1/02 135,000 10.3751 22,306.25 157,306.25 10,:03.13 28,184.38 118,418.75 101 1/02 145,000 10.3751 15,303.13 16(1,30 10,103.13 28,784.38 121,4:5.63 .60,740.6: 41 1103 150,000 10.3751 7,781, 25 157,791, 25 10,103.13 28,784.38 !16,993.75 10/ 1/03 10,103.13 28,794.36 39,99'.SOi lvv,..2.5v 4i 1, 30,000 30,000.00 10,103.13 28,794.38 6.99'.5C'i 10; 1/04 30,000 30,000.00 10,103.13 29,184.,9 L 9,397.50: 41 1/05 30,000 30,000.00 10,103.13 28,764.39 t 9.697.50) 10/ 1/05 30,000 30,000.00 10,103.13 29,. 9,987.50) 2,43:.25 4/ 1/06 30,000 30,000.00 10,103.13 2B,7114.38 !, 8,897.50) 101 1/06 30,000 30,000.00 10,103.13 29,784. i 8,887.50) 2,4:1.2. 4l 1107 1,045,000 1,045,000.00 275,103.13 183,784.38 I 13,887.50) 101 U07 261.215.63 Total 2,855,000 2,575,973.96 5,430,973.96 690,665.63 46,254.93 714,785.17 1,683,725.00 3,725.113.6. 4.415,779.3. f Village of 1equesta, Florida * Schedule 4 Savirgs Generated By Refunding OutstandinOer Refunding Revenue Bonds, Series 1978 am P.V. Calculation Date: 8/01184 Total Net Total Net P.V. Of Period Outstanding Refunding Annualized Cumulative Difference At Ending Debt Service Debt Service Difference Difference Difference 10.000000% 8i 1184 88,087.50 i 88,087.50) f ( 88,087.50) 10/ 1;84 126,040.62 23,218.51 102,822.11 14,734.61 14,734.61 101,163.40 4i 1185 119,796.83 67,770.52 52,026.31 66,760.92 48,744.55 10! 1185 123,181.24 68,979.26 54,201.98 106,228.29 120,962.90 48,369.71 4i 1166 12104184 69031.62 52,014.22 172,477.12 44,207.01 10! 1186 124,840.93 70,289.72 54,551.21 106,565.43 227,528.34 44,155.43 4i 1187 123,11.62 71,027.21 52,086.41 279,614.75 40,152.71 10/ 1187 121,409.68 95,479.83 25,929.85 78,016.26 305,544.60 19,037.12 Rim 4/ i /88 124,398.63 118,532.43 5,866.20 311,410.80 4,101.75 10i 1188 122,487.14 116,620.94 5,866.20 11,732.40 317,277.00 3,906.43 WAN 4; 1189 120,567.73 114,701.53 5,866.20 323,143.21 3,720.41 101 1189 123,371.90 117,505.70 5,B66.20 11,732.40 .329,009.41 3,543.24 41 1190 125,966.64 120,100.44 5,866.20 334,875.61 3,374.52 101 li90 119,010.31 113,144.11 5,866.20 11,732.40 340,741.81 - 3,213.83 4/ 1/91 126,315.94 120,449.74 5,866.20 346,608.01 3,060.79 10/ 1 /91 119,145.01 113,278.81 5,866.20 11,732.40 352,474.2 2,415.03 4i 1192 126,269.72 120,403.52 5,866.20 358,340.42 2,776.22 10/ 1/92 123,608.14 117,741.94 5,866.20 11,732.40 364,206.62 2,644.02 4/ 1/93 120,921.20 115,055.00 5,866.20 370,072.82 2,518.12 101 1193 122,980.33 117,114.13 5,866.20 11,732.40 375,939.02 2,398.21 4/ 1194 119,175.58 43,309.38 75,866.20 451,805.23 29,538.51 10/ 1194 121,813.08 43,309.38 78,503.70 154,369.90 530,308.93 29,104.92 4i 1195 124,281.83 43,309.38 80,972.45 611,281.38 28,595.58 101 1/95 121,581.83 48,309.38 73,272.45 154,244.90 684,553.83 24,644.10 41 1/96 118,881.83 118,074.38 807.45 685,361.28 258.64 10! li96 121,181.83 119,474.38 1,707.45 2,514.90 6B7,068.74 520.84 4/ 1197 123,313.08 120,634.38 2;678.10 689,747.44 778.27 10/ 1 /97 120,275.58 116,469.38 3,806.20 6,484.90 693,553.64 1,053.19 4i 1 /98 122,238.08 117,304.38 4,933.70 698,491.34 1,300.17 101 1198 119,031.83 117,849.38 1,182.45 6,116.15 699,664.79 296.77 4/ L/99 120,825.58 118,146.88 2,678.70 702,348.50 640.28 10 1/99 122,450.58 118,146.88 4,303.70 6,982.40 706,652.20 914.72 4/ UOO 118,906.83 117,896.88 1,009.95 707,662.15 218.96 10/ 1100 120,363.08 117,396.88 2,966.20 3,976.15 710,628.35 612.46 4/ 1 /01 121,650.58 121,646.88 3.70 710,632.05 .73 101 1 /01 122,769.33 120,162.50 2,606.83 2,610.53 713,238.BB 488.22 4i 1102 118,119.33 118,418.75 300.58 713,539.46 53.61 101 1 /02 124,669.33 121,415.63 3,253.70 3,554.28 716,793.16 552.71 4/ 1103 120,281.83 118,893.75 1,388.08 718,181.24 224.57 1O! 1103 ( 147,353.67) ( 38,887.50) ( 108,466.17) ( 107,078.10) 609 ( 16,712.36) 41 1104 S 8,334.38) ( 8,887.50) 553.13 610,268.19 81.17 101 1/04 ( B,J34.38) t 8,887.50) 553.1 1,106.25 610,821.31 77.30 4/ 1 8,334.38) ( 8,887.50i 553.13 611,374.44 73.62 10/ 1 j 05 ( 8,334.38) l 8,887.50) j53.13 1,106.25 611,927.56 70.11 4/ 1, ( 8,334.38) i 8,887.50) 553.13 612,480.69 66.78 101 1106 i 8,334.3B) i 8,887.50) 553.13 1,106.25 613,033.81 63.60 4/ 1/07 ( 8,334.38) ( 13,887.50) 5,553.13 618,586.94 608.07 10! 1101 _ -___ 5,553_13 618,586.44 Total 4,431,188.11 3,813,201.11 618,586.94 618,586.44 400,115.56 + Existing Sinking Fund monies used to reduce cost of refunding escrow. William R. HoU Q h &Co. THE FIRST AMERICAN BUILDING JOE B. WISE SUITE 306 - VICE PRESIDENT RESIDENT MANAGER 701 U.S. HIGHWAY ONE ANTHONY C. SOVIERO POST OFFICE BOX 14095 VICE PRESIDENT NORTH PALM BEACH, FLORIDA 33408 (1 Februar 6 1985 CLARK D. BENNETT (305) 848.8111 J f VICE PRESIDENT JUDY M. ROULIS REPRESENTATIVE Honorable Mayor and Members of the Village Council Village of Tequesta Post Office Box 3273 Tequesta, Florida 33458 Attention: Robert Harp, Village Manager RE: $1,400,000 (approximate) Village of Tequesta, Florida Water Refunding Revenue Bonds, Series 1984 Gentlemen: Confirming our phone conversation with Mrs. Colbert, we wish to schedule the presentation of our Bond Purchase Agreement for your Regular Meeting on Tuesday, February 26th, rather than at a meeting on the 19th as suggested in an eariler communication. The reason for the change is that the 18th is a legal holiday, making it difficult to make arrangements to purchase the State and Local Government Issues which are necessary to this refunding. If we do not hear otherwise, we shall assume that the 26th is an acceptable date for this action. The closing scheduled for March 27th and 28th remains unchanged, and I will be present at the February 12th meeting to give an update. Most sincerely, WILLIAM R. HOUGH & CO. . d�- Joe B. Wise Vice President and Resident Manager JBW /dg cc: John C. Randolph, Esq. Daniel U. Livermore, Esq. Worth T. Blackwell, Esq. STATE, COUNTY AND MUNICEPAL BONDS William R.HouQh & Co. THE FIRST AMERICAN BUILDING JOE B. WISE SUITE 306 VICE PRESIDENT RESIDENT MANAGER 701 U.S. HIGHWAY ONE ANTHONY C. SOVIERO POST OFFICE BOX 14095 VICE PRESIDENT NORTH PALM BEACH, FLORIDA 33408 CLARK D. BENNETT (305) 848 -8111 February 4, 1985 VICE PRESIDENT JUDY M. ROULIS REPRESENTATIVE Honorable Mayor and Members of the Village Council Village of Tequesta Post Office Box 3273 Tequesta, Florida 33458 Attention: Robert Harp, Village Manager RE: $1,400,000 (approximate) Village of Tequesta, Florida Water Refunding Revenue Bonds, Series 1984 Honorable Mayor and Council Members: Confirming a discussion with Mr. Harp, we would like to appear at your regular Council Meeting on Tuesday, February 12 to bring you up -to -date on the above - referenced refunding issue. At that meeting we will request that a special meeting be held the following week, preferably on Tuesday, February 19, if that is convenient for the Council Members and Staff. At that meeting we will present a final Bond Purchase Agreement for your consideration that evening. If accepted, we will then proceed with the marketing and closing activity, with a closing date of Thursday, March 28 in mind. If these dates are agreeable and if the Bond Purchase Agreement is accepted, we will make arrangements for the necessary individuals to fly to New York on Wednesday morning, March 27 for the purpose of signing the Bonds and executing the closing documents, followed by the closing and transfer of funds on Thursday morning, March 28. If the Village finds that these dates are inappropriate, please so advise at your earliest convenience so that we may reschedule accordingly. Most sincerely, WI AM R. HOUGH & CO. Jo B. Wise V ce President and Resident Manager JBW /dg cc: John C. Randolph, Esq. Daniel U. Livermore, Esq. STATE, COUNTY AND MUNICIPAL BONDS LIVERMORE KLEIN a LOTT, P.A. ATTORNEYS AT LAW DANIEL U. LIVE RMORE, J R. 904/359-0500 RICHARD E. KLEIN SUITE 225 RICHARD 1. LOTT 701 FISK STREET PATRICIA D. WHEELER JACKSONVILLE, FLORIDA 32204 MARK T. MUSTIAN JO ANN LEVIN CLAUDE L. MULLIS KATHRYN L. SANDS OF COUNSEL WILLIAM L. ZVARA To: Distribution From: Daniel U. Livermore, Jr. owl Date: February 6, 1985 Re: Village of Tequesta Water Refunding Revenue Bonds, Series 1985 Enclosed please find a draft of the preliminary official statement for the above referenced bonds. We would appreciate your review and comments as soon as possible. BAM /pjh -278A -1896 VILLAGE OF TEQUESTA WATER REFUNDING REVENUE BONDS, SERIES 1985 Distribution List Mr. Robert Harp Village Manager 357 Tequesta Drive Tequesta, Florida 33458 John C. Randolph, Esq. Johnston, Sasser, Randolph & Weaver 310 Okeechobee Blvd. West Palm Beach, Florida 33402 Mr. Joe B. Wise William R. Hough & Co. 701 U.S. Highway One Suite 306 North Palm Beach, Florida 33408 Marco H. Rocca Gee & Jenson 2090 Palm Beach Lakes Blvd. West Palm Beach, Florida 33402 c� C V LKL- 02/06/85 -278A -1896 LIVERMORE KLEIN 8 LOTT, P. A. ATTORNEYS AT LAW DANIEL U. LIVERMORE,JR. 904/359 -0500 RICHARD E. KLEIN SUITE 225 RICHARD 1. LOTT 701 FISK STREET PATRICIA D. WHEELER JACKSONVILLE, FLORIDA 32204 MARK T. MUSTIAN JO ANN LEVIN KATHRYN L.SANDS February 6, 1985 CLAUDE L.MULLIS OF COUNSEL WILLIAM L. ZVARA Mr. William McCahill MBIA 34 South Broadway White Plains, New York 10602 Re: Village of Tequesta Water Refunding Revenue Bonds, Series 1985 Dear Bill: Enclosed please find (1) eight copies of a draft preliminary official statement and (2) a copy of the authorizing resolution for the above referenced bonds for your use in determining their insurability. If we can be of further assistance please contact us. Sincerely, 1% 1 Daniel U. Livermore, Jr. BAM /pjh -278A -1896 cc: Mr. Joe Wise LIVERMORE KLEIN 8 LOTT P. A. ATTORNEYS AT LAW DANIEL U. LIVERMORE,JR. 904/359 -0500 RICHARD E. KLEIN SUITE 225 RICHARD 1. LOTT 701 FISK STREET PATRICIA D. WHEELER JACKSONVILLE, FLORIDA 32204 MARK T.MUSTIAN JO ANN LE KATHRYN L. SANDS February 6 1985 CLAUDE L.MULLIS KA � OF COUNSEL WILLIAM L. ZVARA Ms. Julie Giambone Standard & Poor's Corporation 25 Broadway, 21st Floor New York, New York 10004 Re: Village of Tequesta Water Refunding Revenue Bonds, Series 1985 Dear Ms. Giambone: At the request of Mr. Joe Wise of William R. Hough & Co., enclosed is a draft preliminary official statement for the above referenced bonds for your use in the rating. If we can be of further assistance please contact us. Sincerely, l a ^ niel U. Livermore, Jr. BAM /pjh -278A -1896 cc: Mr. Joe Wise LIVERMORE KLEIN 8 LOTT, P. A. ATTORNEYS AT LAW DANIEL U. LIVERMORE,JR. 904/359 -0500 RICHARD E. KLEIN SUITE 225 RICHARD 1. LOTT 701 FISK STREET PATRICIA D. WHEELER JACKSONVILLE, FLORIDA 32204 MARK T. MUSTIAN JO ANN LEVIN KATHRYN L. SANDS February 6, 1985 CLAUDE L.MULLIS OF COUNSEL WILLIAM L. ZVARA John Incorvaia Moody's Investors 99 Church Street New York, New York 10007 Re: Village of Tequesta Water Refunding Revenue Bonds, Series 1985 Dear Mr. Incorvaia: At the request of Mr. Joe Wise of William R. Hough & Co., enclosed is a draft preliminary official statement for the above referenced bonds for your use in the rating. If we can be of further assistance please contact us. Sincerely, P aniel " U.Liverm4re s , V ; 1!404 BAM /pjh -278A -1896 cc: Mr. Joe Wise r6 - 3 �BNE _(A,, 16,66 5L Willi R.HouQh &Co. THE FIRST AMERICAN BUILDING JOE B. WISE SUITE 306 VICE PRESIDENT RESIDENT MANAGER 701 U.S. HIGHWAY ONE POST OFFICE BOX 14095 ANTHONY C. SOVIERO VICE PRESIDENT NORTH PALM BEACH, FLORIDA 33408 CLARK D. BENNETT (305) 848 -8111 VICE PRESIDENT January 18 1985 JUDY M. RO � REPRESENTA Ms. Brenda Miller Livermore, Klein & Lott, P.A. 701 Fisk Street, Suite 225 Jacksonville, Florida 32204 RE: Tequesta Water Refunding Revenue Bonds, Series 1984 Dear Brenda: Attached you will find the most current agricultural production figures available for Palm Beach County. Please update the general information section of the above - referenced official statement with this material (as well as the two Riviera Beach issues, if it is not too late). Also attached is "the Village of Tequesta, General Information" prepared by Village Manager Robert Harp, which should be included. We are in receipt of your draft official statement for Tequesta, and will call you with our comments after we have had an opportunity to review same. Most sincerely, WILLIAM R. HOUGH & CO. J, Judy M. Roulis JMR /dg Attachments STATE, COUNTY AND MUNICIPAL BONDS =``'TOTAL PRODUCTION PALM 19 EACR COUNTY AOR ICU'LTURE 1981 -82 1982 -83 1983 -84 BEEF $ 10,624,000 $ 4,890,000 $ 3,480,000 DAIRY (Incl. Cull Cows & Calves) 7,809,589 6,439,455 4,529,800 HORSES 19,736,000 24,463,000 30,650,000 :;SOD 26,853,750 19 - 25,965,146 FLOWERS 8,004,150 12,692,295 14,891,149 ORNAMENTALS 60,67 4,000 84,398,975 99,020,528 CITRUS & TROPICAL FRUITS 29,129,099 21,372,566 _26,702,099 SUGAR 371,769,577 447,031,811 429,484,227 VEGETABLES Coast 74,291,529 91,821,411 114,526,850 Glades 106 139,605,344 111,756,067 (TOTAL) (180,451,563) (231,426,755) (226,282,917) RICE 2,627,946 1,489,293 2,873,664 FIELD CORN 2,914,022 1,885,878 '1,494,020 MISC. AGRICULTURE No Volume 157,326 No Volume TOTAL $ 720,593,696 $ 856,107,248 $ 865,364,550 AGRIBUSINESS Fertilizer, Seed and Pesticides $ 55,402,005 $ 56,953,261 $ 59,345,298 Landscaping and Landscape Service 27,226,164 28,587,472 30,302,720 TOTAL $ 82,628,169 $ 85,540,733 $ 89,648,018 ESTIMATED LABOR PAYROLL (TOTAL AGRICULTURE 1983 -1984) $ 253,892,651 THESE FIGURES ARE COMPILED AND PREPARED BY THE PALM BEACH COUNTY COOPERATIVE EXTENSION SERVICE e ,RECEIVED JAN 18 1 VILLAGE OF TEQUESTA WATER DEPARTMENT 357 TEQUESTA DRIVE TELEPHONE TEQUESTA, FLORIDA MAILING ADDRESS AREA CODE 305 P.O. BOX 3474 746 -4595 TEQUESTA, FLORIDA 33458 January 17, 1985 Mr. Joe B. Wise Vice President William R. Hough $ Company The 1st American Bank Suite 306 P. 0. Box 14095 North Palm Beach, Florida 33408 Dear Joe: RE: WATER REFUNDING ISSUE Pursuant to your recent request, we are enclosing a copy "The Village of Tequesta, General Information." We trust this is the information required. The text is not sacred so please feel free to edit, revise, change, delete or whatever in order that the material will best serve the purpose for which it is intended. Yours very truly, VILLAGE OF TEQUESTA WATER DEPARTMENT ROBERT HARP Village Manager RH:mk Encl. THE VILLAGE OF TEQUESTA GENERAL INFORMATION JANUARY 1985 The Village of Tequesta was incorporated as a municipality of Palm Beach County in 1957 by Special Act of the Legislature of Florida. The 1960 Census listed at population of 199, the 1970 census listed the population was 2,642 and the 1980 census listed the population as 3,685. The April 1, 1984 estimate by the Population Program, Bureau of Economic and Business Research, University of Florida, was 3,870. Village of Tequesta officials estimate the 1984 population at 4,000. The Palm Beach County 1984 estimate of population was 682,635. The 1980 census reported that the median family income of persons living in the Village of Tequesta was $31,973.00 as com- pared to a median family income of $19,817.00 for Palm Beach County. The per capita income was $15,034.00. The Village is governed by five Councilmembers, elected for two year overlapping terms, two elected in the odd numbered years and three elected in the even numbered years. After each election held annually on.the second Tuesday of March, the Council elects one of its members to serve as Mayor for the ensuing year. The Council appoints a Village Manager and Village Clerk to serve at the will of the Council. The Village Manager is responsible for the administration of the Village under general policies adopted and approved by the Council. The present Manager has served in that capacity since appointed as the first Village Manager in 1961. The Village clerk has served continuously for over ten years. The current Mayor was elected as a member of Council in 1980 and is now in his second year as Mayor. The Vice -Mayor is serving his first term as a member of the Council. Another Councilmember is serving in his second term while another is in the second year of his first term. The fifth Councilmember is in the first year of his current term and previously served as a Councilmember from March 1977 to March 1983, serving as Mayor for three years during this period. The Village of Tequesta is in a beautiful location at the inter- section of the Loxahatchee River, the Intracoastal Waterway and the Jupiter Inlet to the Atlantic Ocean, occupying about 2.0 square miles of area. The Village has water frontage on both sides of the Intracoastal Waterway, the Atlantic Ocean, both sides of the northfork of the Loxahatchee and the east side of the northwest fork of the Loxahatchee River. One major development within the Village is built around Tequesta Country Club. The abundance of waterfront has led to the development of beautiful and expensive homes, many with private docks for boats and yachts. A number of large condominiums are located on the oceanfront as well as along the Intracoastal Waterway. There are several large marina and boat sales facilities located in the general area, particularly along the Intracoastal Waterway. The 1984 assessed valuation per capita in the Village was $68,541.00 as compared to a Palm Beach County assessed valuation per capita of $51,288.00. The net taxable assessed valuation per c apit comparisons are $54,006 and $38,848, respectively. r, Village of Tequesta General Information January 1985 Page 2 - ------------------------- The Village of Tequesta is largely a residential community. However, there are four large shopping malls and two smaller malls within the Village, with stores and businesses providing goods and services to meet the needs of the residents. There is no public school within the Village, but public schools are located in Jupiter, which is just across the Loxahatchee River. There are six churches within the Village representing six denominations. Three banks and three Savings and Loan Associations are located within the Village. The Palm Beach- Martin County Medical Center is located about three miles south of Tequesta consisting of an Outpatient Center, a Convalescent Pavilion and a 156 Bed Hospital. There are five Medical Doctors, thirteen Dentists, three Chiropractic Physicians, two Podiatrists, one Osteopathic Physician and one Optometrist practicing within the Village. The Village of Tequesta is located on State Road 5 (U.S. Highway No. 1), County Road 707, Old Dixie Highway and County Road 811 is appro- ximately one mile south of Tequesta. County Road 706 is approximately three miles south of Tequesta and intersects the Sunshine State Parkway about six miles west of State Road 5 (U.S. Highway No. 1). Interstate I -95 is not yet completed to the Tequesta- Jupiter area. The nearest entrance to I -95 is at PGA Boulevard in Palm Beach Gardens, approximately ten miles southwest of Tequesta. Tequesta is served by the Florida East Coast Railway Company and by Greyhound Bus Lines and a number of motor freight lines serve the area. The nearest major shopping areas are at North Palm Beach and West Palm Beach, approximately fifteen and twenty miles south and two larger shopping areas are located in Jupiter. The nearest commercial airport is Palm Beach Inter- national, approximately twenty five miles south of the Village. Wastewater services are provided to a portion of the residents of the Village by the Loxahatchee River Environmental Control District, a re- gional facility, electricity by Florida Power $ Light Company, telephone service by Southern Bell and AT&T, Cable TV service by Perry Cable TV, liquified petroleum gas by Flo -Gas Corporation, Florida Public Utilities Company and others and garbage and trash collection service by a private contractor with a franchise to serve the Village. The Village pays the cost of garbage and trash collection services. The Village of Tequesta owns and operates its own water system, serving all of Tequesta, all of the Municipality of Jupiter Inlet Colony, that portion of the'Town of Jupiter north of the Loxahatchee River and un- incorporated developed areas of Northern Palm Beach County and Southern Martin County. The population served by the water system is approximately 10,000.00. Village of Tequesta General Information January 1985 Page 3 - ----------------------------- The Village has forty three full time and one part -time employees as follows: Administration 5 Police Department 21 Building Department 3 Maintenance Department 5 Recreation Department 2 and 1 Part -time Water Department 7 Councilmembers and Village Attorney are not included in the figures. All full time employees are members of the Florida Retirement System and the Village is presently paying 12.24% salary for regular employees and 14.67% of salary for Special Risk Employees (Police Department) into the Florida Retirement System. The employees are not required to make any contribution to the retirement plan. Fire /Rescue Services are furnished to the Village by'the Palm Beach County Fire /Rescue Service MSTU No. 1 under an agreement with the Village. The MSTU serves the northeast section of Palm Beach County. The MSTU has three fire stations, one in Tequesta, one in Jupiter and one in Jupiter Farms area, west of the Sunshine State Parkway. The Tequesta and Jupiter Stations are about three miles apart and both stations respond to fire calls in Tequesta, if necessary. The MSTU has a total of 57 full time paid per- sonnel with adequate equipment to serve the area. The present fire insurance rating in Tequesta is Class 6. LARGEST TAXPAYERS TAXABLE ASSESSED VALUATION Tax Payer Type of Business 1984 Assessed Value Barnett Bank of Palm Beach County Banking $6,828,585 Lighthouse Plaza Shopping Plaza 4,080,214 Village Square Shopping Center 2,864,108 Pride Plaza Supermarket 2,288,785 Tequesta Plaza Shopping Plaza 2,195,168 Tequesta Fashion Mall Shopping Center 1,859,550 Tequesta Country Club Golf $ Social Club 1,775,580 Villager Apartments Apartment Rentals 1,226,608 Shaw Properties -Office Building 791,962 Community Federal of Riviera Savings & Loan Ass'n. 728,998 Beach Village of Tequesta General Information January 1985 Page 4 - ------------------------ In addition to the above, a number of individual single family residences and individual condominium apartments are valued from $100,000 to $440,000. ECONOMIC STATISTICS Building Fiscal Utilities Franchise Permit Water Year Population Taxes Taxes Valuation Services 1983/1984 4,000 a) $290,559 $196,960. $10,518,208. 3,523 1982/1983 3,810 267,935 203,132 6,223,589 3,368 1981/1982 3,828 255,824 190,915 4,422,781 3,253 1980/1981 3,750 235,756 135,960 8,199,076 3,212 1979/1980 3,685 212,861 123,378 6,344,463 3,074 1969/1970 2,642 37,452 25,136 5,402,245 Not available 1959/1960 199 Source: Village' records and census and University of Florida, Population Program a) Village Estimate LARGEST WATER USERS (BASED ON NOVEMBER 1984 WATER SALES) Jupiter Cove 1,836,000 gallons Tequesta Gardens Condominium Association 1,364,000 " Turtle Creek No. 1 Association, Inc. 965,000 Cypress Villas of Tequesta 604,000 " Sandpointe Bay Condominium 546,000 " Broadview Condominium Association 486,000 Seawatch at Jupiter Island Condominium As 415,000 The Pines of Jupiter /Tequesta 410,000 Southeast Bank, N. A. 361,000 Tequesta Towers Condominium Association 357,100 Village of Tequesta General Information January 1985 Page 5 - ------------------------- FINANCIAL INSTITUTIONS WITHIN VILLAGE OF TEQUESTA DEPOSITS AS OF SEPTEMBER 30, 1984 Community Federal Savings & Loan Association $ 82,990,000 Barnett Bank of Palm Beach County 80,704,000 Fidelity Federal Savings Bank 33,519,000 Savings of America 21,000,000 First American Bank of Palm Beach County 12,912 Lighthouse National Bank 1,677,711 TOTAL DEPOSITS . . . . . $232,803,399 ' LIVERMORE KLEIN 8 LOTT, P. A. ATTORNEYS AT LAW DANIEL U. LIVE RMORE,JR. 904/359 -0500 RICHARD E. KLEIN SUITE 225 RICHARD L LOTT 701 FISK STREET PATRICIA D. WHEELER JACKSONVILLE, FLORIDA 32204 MARK T. MUSTIAN JO ANN LEVIN KATHRYN L.SANDS CLAUDE L.MULLIS OF COUNSEL WILLIAM L. ZVARA November 17, 1984 Mr. John C. Randolph Johnston, Sasser, Randolph & Weaver 310 Okeechobee Boulevard West Palm. Beach, Florida 33402 Re: $4,000,000 Water Refunding Revenue Bonds, Series 1984 The Village of Tequesta, Florida Dear Skip: I have reviewed the Answer filed by the State Attorney and the validation proceedings for the Village of Tequesta Water Refunding Revenue Bonds, Series 1984, and suggest that we respond at the validation hearing as follows: I. Documentary Evidence (a) Resolution of October 23rd, authorizing issuance of the bonds (Exhibit A to the Complaint). (b) Resolution authorizing Refunded Bonds. (c) Certified extracts of the minutes of the meeting of October 23rd. (d) Proof of publication of the Order to Show Cause in the validation proceeding. H. Testimony (a) Describe the refunding procedure (i.e., Deposit of funds in escrow, investment in U.S. Treasury obligations, cash flow). (b) Describe the advantages to the City derived from the bond issue (i.e., lower debt service payments, derived from the economic benefit of increasing yield on invested sinking fund from 7.6256 to current rate, and covenant changes (generally outlined in my letter of September 24). (c) Testimony relating to sufficiency of revenues to pay the bonds and operate the system. LIVERMORE KLEIN 8 LOTT, P.A. Mr. John C. Randolph November 17, 1984 Page 2 (a) and (b) could best be handled by Joe Wise. (c) could be either Joe, Bob Harp, the City finance officer, or the City's consulting engineer, whomever you think best. I am enclosing herewith a form of a proposed Final Judgment for use at the hearing and a Certificate of No Appeal. Sincerely, Daniel U. Livermore, Jr. DULJr/1p -278A-1896 Enclosures cc: Mr. Joe Wise William R. Hough & Co. William R. Hough & Co. VTi T.AiGE OF. THQUESpA PRIMX D SEQUENCE OF EVENTS SCHEDULE 1984 REFiMDU PROGRAM, HMM DEPAR D92U BONDS (REVISED AS OF 10/22/84) Week of u Village Council Passes Bond Resolution Oct. 23 �' P' Village Attorney Files for Validation Oct. * - Begin Preliminary Official Statement Nov. 5 Circulate "Comment Draft" of Preliminary Official Statement Nov. 12 Validation Hearing Nov. 14,15 or 16 Complete Preliminary Official Statement Nov. 22 Formal Request for Ratings and MBIA Insurance Nov. 22 Distribute Preliminary Official Statement Nov. 22 Presentation to Rating Agencies and MBIA in New York Dec. 3 or 10 Ratings and Insurance Commitment Received Dec. 10 or 17 Selection of Escrow Agent & Registrar Dec. 10 Verification of Refunding Numbers Dec. 10 Submit "SLUG" Subscriptions to Fed Dec. 10 Begin Printing of Bonds Dec. 10 Make Arrangements for N.Y. Closing Dec. 10 "Due Diligence" by Underwriter's Counsel Dec. 10 Auditor's and Engineer's "Comfort Letters" Received Dec. 10 Validation Appeal Period Expires Dec. 17 Purchase of Bonds Dec. 17 Revise and Finalize Official Statement Dec. 17 or Jan. 2 Final Official Statement Printed and Shipped Dec. 17 or Jan. 2 Closing and Delivery of Bonds in New York Jan. 16 or Jan. 23 Prepared by: Joe B. Wise LIVERMORE KLEIN 8 LOTT, P. A. ATTORNEYS AT LAW DANIEL U. LIVERMORE,JR. 904/359-0500 RICHARD E. KLEIN SUITE 225 RICHARD 1. LOTT 701 FISK STREET PATRICIA D. WHEELER JACKSONVILLE, FLORIDA 32204 MARK T. MUSTIAN JO ANN LEVIN KATHRYN L.SANDS CLAUDE L.MULLIS WILLIAM L. ZVARA OF COUNSEL October 24, 1984 John C. Randolph, Esq. Johnson, Sasser, Randolph do Weaver 310 Okeechobee Boulevard West Palm Beach, Florida 33402 Re: Village of Tequesta Water Refunding Revenue Bonds, Series 1984 Dear Skip: Enclosed are 6 copies of the resolution authorizing the above bonds, with changes reflecting amendments made at the Village Council meeting on Tuesday, October 23, prior to its adoption. I think you have enough copies to file for validation and forward a recording copy to the Village Clerk. Please ask the Clerk to send us a certified copy at her convenience. Sincerely, Brenda A. Miller Legal Assistant BAM /ag -278A Enclosures V o QI o� YN OFFICE OF THE VILLAGE MANAGER �® ja JL VILLAGE OF TEQUESTA 357 TEQUESTA DRIVE TEQUESTA, FLORIDA TELEPHONE MAILING ADDRESS AREA CODE 305 P. O. BOX 3273 746 -7457 TEQUESTA, FLORIDA 33458 November 8, 1984 Mr. John C. Randolph Johnston, Sasser, Randolph & Weaver P. 0. Box M West Palm Beach, Florida 33402 Dear Skip: Re: RESOLUTION NO. 2 -84/85 $4,000,000 WATER REFUNDING REVENUE BONDS, SERIES 1984 In reviewing the information received from your office this date including the referenced Resolution, we note that on Page 21, Section "P ", Line 4, the words "or sanitary sewerage" were not deleted, as suggested at the October 23, 1984 Council Meeting. Yours very truly, VILLAGE OF TEQUESTA ROBERT HARP Village Manager RH:mk R p�/� !t'r - ^- E n L !� _., .. 7 _ , -,Cu JOHNSTON, SASSER, RANDOLPH & WEAVER ATTORNEYS AND COUNSELORS AT LAW 310 OKEECHOBEE BOULEVARD HARRY A. JOHNSTON II WEST PALM BEACH, FLORIDA 33402 HENRY F. LILIENTHAL DONALD J. SASSER 1902-1982 JOHN C. RANDOLPH P. O. BOX M HARRY ALLISON JOHNSTON H. ADAMS WEAVER MAUREEN A. RACKETY 1895-1983 ANN MARIE G. REZZONICO November 6, 1984 (305) 655 -0108 Daniel U. Livermore, Jr., Esq. Livermore, Klein & Lott, P.A. Suite 225 701 Fisk Street Jacksonville, Florida 32204 Re: Village of Tequesta Water Refunding Revenue Bonds Series 1984 Dear Dan: Enclosed for your file are conformed copies of the Complaint, Acknowledgement of Service of the State Attorney, and Order to Show Cause. Please note the hearing is scheduled for November 21, 1984, at 12:00 noon. Very tr iy yours, H ANDOLPH ox r. JCR /lsn Enclosures cc: Robert Harp Willi R. Hough &Co. THE FIRST AMERICAN BUILDING JOE B. WISE SUITE 306 7 v�NC �. VICE PRESIDENT _ RESIDENT MANAGER 701 U.S. HIGHWAY ONE �- ANTHONY C. SOVIERO POST OFFICE BOX 14095 3(a r V S 3 ` VICE PRESIDENT NORTH PALM BEACH, FLORIDA 33408 ' y ,.� V ; � CLARK D. BENNETT (305) 848 -8111 \ VICE PRESIDENT VA�IAav V C JUDY M. ROULIS REPRESENTATIVE October 1, 1984 C \\ A 1V)„ U I� LA ke s r3[�� Mr. Robert Harp x WA -I Village Manager S S o��� ' Village of Tequesta 5 Post Office Box 3273 Tequesta, Florida 33458 RE: Village of Tequesta, 1984 Water Revenue Refunding Program Dear Bob: Confirming our phone conversation, we have set up a meeting at the Village Hall for Wednesday, October 10th at 1:30 P.M., for the purpose of reviewing the draft of the ordinance authorizing the above Bonds. I have suggested lunch atQ illary's, at noon, for those who care to join us. John Randolph's office advises that his schedule appears clear for that time on the 10th. Dan Livermore is also available at that time. Please feel free to include any of your staff who might wish to sit in on the meeting or join us at lunch. If you have any problems with this schedule, please let me know as soon as possible. Sincerely, WILLIAM R. HOUGH & CO. e B. Wise CJ Vice President and Resident Manager JBW /dg �, n cc: John C. Randolph, Esq. CVA©f � S Daniel U. Livermore, Esq. l J Worth T. Blackwell, Esq. f� „l u S / 6 /J 7 - 1 i Evan Ward 14 J "� Q—tH o 41 STATE, COUNTY AND MUNICIPAL BONDS JOHNSTON, SASSER, RANDOLPH & WEAVER ATTORNEYS AND COUNSELORS AT LAW 310 OKEECHOBEE BOULEVARD HARRY A. JOHNSTON II WEST PALM BEACH, FLORIDA 33402 HENRY F. LILIENTHAL DONALD J. SASSER 1902-1982 JOHN C. RANDOLPH P. O. BOX M HARRY ALLISON JOHNSTON H. ADAMS WEAVER 1895-1983 MAUREEN A. HACKETT ANN MARIE G. REZZONICO October 2, 1984 ( 655.0108 Daniel U. Livermore, Jr., Esq. Livermore, Klein & Lott, P.A. Suite 225 701 Fisk Street Jacksonville, Florida 32204 Re: Village of Tequesta Water Refunding Revenue Bonds, Series 1978 Dear Mr. Livermore: This will acknowledge receipt of your letter and enclosures of September 24, 1984. As you may be aware, Mr. Randolph is on vacation until October 8, but I will bring this matter to his attention on his return to the office. This will also confirm the meeting scheduled by Joe Wise for Wednesday, October 10, at the Tequesta Village Hall at 1:30 p.m. Very truly yours, Li a Niederlander, Secretary to JOHN C. RANDOLPH /lsn cc: Robert Harp, Village Manager Joe Wise, William R. Hough & Co. c�ra _s,�a� �a_78' VILLAGE OF TEQUESTA PROPOSED SEQUENCE OF EVENTS SCHEDULE 1984 REFUNDING PROGRAM, WATER DEPARTMENT BONDS Week of Review & Discussion of Preliminary Financing Plans July 30 Finalize Financing Plans Aug. 13 Financing Plans Approved by Village Council Aug. 27 Consulting Engineer Begin Summary Report Aug. 27 Bond Counsel Begins Preparation of Resolution Aug. 27 Comment Drafts of Resolution Circulated Sept. 24 Bond Resolutions Finalized & Distributed Oct. 1 Village Council Passes Bond Resolution ✓ Oct . ,8- a3 Village Attorney Files for Validation Oct. -& a W Investment Bankers Begin Preliminary Official Statement Oct. 22 Circulate "Comment Draft" of Preliminary Official Statement Oct: 22 Validation .Hearing Oct. 2-9-0 -r NovJ5 1y 0. Complete Preliminary Official Statement Oct. 29 Formal Request for Ratings and MBIA-Insurance Oct. 29 Distribute Preliminary Official Statement Oct. 29 Presentation to Rating Agencies and MBIA in New York Nov. 5 or 12 Validation Appeal Period Expires No*,-26--or Dec... -ICI Ratings and Insurance Commitment Received Nov. 12 or 19 Selection of Escrow Agent & Registrar Nov. 12 'be-v3 Purchase of Bonds Nov—. --1-9-- ��,-, ► I Verification of Refunding Numbers Nev. 12- jo Submit "SLUG" Subscriptions to Fed NOV 7<< L� Begin Printing of Bonds • - N9 V 12 4O Make Arrangements for N.Y. Closing "Due Diligence" by Underwriter's Counsel C- Lo Auditor's and Engineer's "Comfort Letters" Received Revise and Finalize Official Statement Final Official Statement Printed and Shipped . S� 1 ° Closing and Delivery of Bonds in New York Prepared by: Joe B. Wise August 1, 1984 LIVERMORE KLEIN 8 LOTT P.A. C 1 � ATTORNEYS AT LAW DANIEL U. LIVERMORE,JR. 904/359 -0500 RICHARD E. KLEIN RICHARD I. LOTT SUITE 225 PATRICIA D. WHEELER 701 FISK STREET MARK T. MUSTIAN JACKSONVILLE, FLORIDA 32204 JO ANN LEVIN KATHRYN L.SANDS CLAUDE L.MULLIS WILLIAM L. ZVARA OF COUNSEL June 15, 1985 Ms. July Roulis William R. Hough & Co. 100 Second Avenue South Suite 800 St. Petersburg, Florida 33701 Re: Rerating of Refunded Bonds. $1,525,000 Village of Tequesta, Florida, Water Refunding Revenue Bonds, Series 1985 Dear Judy: This letter is written in response to your recent request. Please be advised that we acted as bond counsel in connection with the issuance of the $1,525,000 principal amount of Water Refunding Revenue Bonds, Series 1985 (the 11 1985 Bonds "), issued on March 21, 1985. A portion of the proceeds of the 1985 Bonds was deposited in escrow pursuant to an Escrow Deposit Agreement, dated. as of January 1, 1985, between the Village and Barnett Banks Trust Company, N.A., as escrow holder. Those funds, together with certain other funds and investments so deposited, have been invested pursuant to the Escrow Deposit Agreement, and the proceeds of such investments and cash will be used to pay principal of and interest on the outstanding bonds of the issue of Water Refunding Revenue Bonds, Series 1978 (the "Refunded Bonds "). In our opinion, as a result of such deposit and the issuance of the 1985 Bonds, the Refunded Bonds have been fully defeased. You are authorized to deliver a copy of this letter to the rating agencies, in connection with your application to revise the rating for the refunded bonds. Sincerely, —J C . ^— Daniel U. Livermore, Jr. DULJr:gs -278A -1896