Fort Walton Beach Council agenda — 04-12-11 regular — reading text

A -5  ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers to Insert Social Security or Other Identifying Number of Assignee Name and Address of Assignee) does appoint the within bond and hereby irrevocably constitute and as attorneys to register the transfer of the said bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: Signature guaranteed: NOTICE: Signature must be guaranteed by an institution which is a participant in the Securities Transfer Agent Medallion Program ( STAMP) or similar program. NOTICE: The signature to this assignment must correspond with the name of the Registered Holder as it appears upon the face of the within bond in every particular, without alteration or enlargement or any change whatever and the Social Security or other identifying number of such assignee must be supplied. W, Re: Capital Improvement Revenue Note, Series 2011 Dear XXXXX: In connection with the issuance of the Capital Improvement Revenue Note, Series 2011 ( " Series 2011 Note ") to and for the City of Fort Walton Beach, FL ( "City ") in the amount of $ , and the Loan Agreement with Hancock Bank Lender ") dated April , 2011 ( " Loan Agreement "), I have served as counsel to the City. As such, I have examined copies of the following: ( i) The Constitution and laws of the State of Florida, particularly Chapter 166; ( ii) The Capital Improvement Revenue Series 2011 Note and Loan Agreement; ( iii) Resolution No. 2011 -8 duly adopted by the City Council on April 12, 2011; ( iv) Such other laws, documents, proofs and proceedings as I have deemed necessary as a basis for the opinions hereinafter expressed. Capitalized terms herein not otherwise defined shall have the meaning ascribed in the Resolution and the Loan Agreement. The Series 2011 Note is being sought for the purpose of providing moneys for (i) financing the purchase of a fire truck and specific equipment for use at the City's municipal golf course, and ( ii) paying all or a portion of the costs associated with the issuance of the Series 2011 Note. The Series 2011 Note will mature on April 1, 2021, and will bear interest as provided in the Loan Agreement. Interest shall be payable quarterly on January 1, April 1, July 1 and October 1, commencing on July 1, 2011. The Series 2011 Note is subject to redemption prior to maturity in accordance with the terms of the Loan Agreement. The Series 2011 Note is being issued in the form of one fully registered Series 2011 Note in the denomination of $ Based on the foregoing, I am of the opinion that: 1. The City is a duly created and validly existing municipal corporation under the Constitution and laws of the State of Florida, and the City has good right, power and lawful authority to perform all of its obligations under Resolution No. 2011 -8, Series 2011 Note and Loan Agreement; 2. The City Council of the City has full right, power and authority to adopt Resolution No. 2011 -8 and to execute the Series 2011 Note and Loan Agreement. Resolution No. 2011 -8 has been duly adopted and enacted by the City Council. The actions of the City council are in full force and effect and are binding on the City and enforceable in accordance with the terms of Resolution No. 2011 -8, 2011 Series Note, and the Loan Agreement terms, except as to the enforcement of remedies which may be limited by applicable bankruptcy, insolvency or other laws or equitable principles affecting the enforcement of creditors' rights generally; 3. No consent, waiver or any other action by any person, board or body, public or private, not already obtained by the City is required for the City Council to adopt Resolution No. 2011 -8, or to perform its obligations under the Series 2011 Note and Loan Agreement;  4. The Series 2011 Note does not constitute a general indebtedness of the City or the State of Florida or any agency, department or political subdivision thereof, or a pledge of the faith and credit of such entities, but is payable solely from the Pledged Funds ( as defined in the Loan Agreement) in the manner and to the extent provided in Resolution No. 2011 -8 and the Loan Agreement. No holder of the Series 2011 Series Note shall ever have the right to compel the exercise of any ad valorem taxing power of the City or the State of Florida or any political subdivision, agency or department thereof to pay the Series 2011 Note; 5. The City has specifically covenanted in the Loan Agreement to ( i) remain tax compliance to ensure the Series 2011 Note remains as a " qualified tax -exempt obligation "; (ii) to provide annual financial statements to the Lender; ( iii) provide a copy of its annual budget to the Lender; ( iv) establish a " sinking fund" ( as defined in the Loan Agreement); ( v) the City must meet the anti -dilution test set forth in Section 10. E. of the Loan Agreement prior to creating any lien or pledge on Non -Ad Valorem Revenues. 6. The City is legally entitled to covenant and budget it' s Non -Ad Valorem Revenues, and is legally entitled to appropriate from such Non -Ad Valorem Revenues sufficient amounts in each Fiscal Year to pay the principal of and interest on the Series 2011 Note. 7. The City has designated the Series 2011 Note as " qualified tax exempt obligation" under Section 265( b)( 3)( B) of the Code, and has agreed to take all necessary steps to ensure the proceeds of the Series 2011 Note and any Pledged Funds are used consistent with the Code. This opinion is given as of the date hereof, is given solely for your benefit and the benefit of your counsel, and may not be relied upon by any other person or entity, except for any assignee or participant of the Series 2011 Note or the Loan Agreement. Very truly yours, Hayward Dykes, Jr., Esq.  City Council of Fort Walton Beach ENGINEERING & UTILITY SERVICES MEMORANDUM To: Robert T. Mearns, City Manager From: Michael Beedie, Engineering & Utility Services Director Date: April 12, 2011 Subject: Resolution 2011 - 10 - Fiscal Hardship Certificate 1. BACKGROUND: 1. 1. In order for the City of Fort Walton Beach to qualify for a reduction or waiver of permit processing fees for the Florida Department of Environmental Protection ( FDEP) or Northwest Florida Water Management District (NWFWMD) pursuant to Section 218.075 of the Florida Statutes, the City must demonstrate that it meets one of the following fiscal hardship criteria: 1. 1. 1. Per capita ad valorem taxable value less than the statewide average for the current fiscal year; 1. 1. 2. Percent of assessed property value that is exempt from ad valorem taxation is higher than the statewide average for the current fiscal year; 1. 1. 3. Any conditions specified in Section 218.503 of the Florida Statutes that determines a state of financial emergency; 1. 1. 4. Ad valorem operating millage rate for current fiscal year is greater than 8 mills; or, 1. 1. 5. A financial condition that is documented in the annual financial statements at the end of the current fiscal year and indicates an inability to pay the permit processing fee during that fiscal year. 2. DISCUSSION: 2. 1. According to data acquired by the City from the Florida Department of Revenue, Office of Property Tax Oversight (January 2011) regarding criteria Number 2 above, for 2010: 2. 1. 1. The total assessed value of ad valorem property statewide was $ 1, 781, 700, 000 ( x 1, 000). 2. 1. 2. Of the above amount, exempt properties including homestead exemptions and those classified as " other ", is $ 436, 610,000 ( x 1, 000). 2. 1. 3. Therefore, from the above data, the percentage of assessed property that is exempt statewide is 24. 51 %. 2. 1. 4. The City of Fort Walton Beach had a total assessed value of ad valorem property in 2010 of $1, 679, 673 ( x 1, 000). 2. 1. 5. In 2010, the City' s total amount of exempt ad valorem properties was 469, 933, 333. Doc ID: 1 195 B Page 1  RESOLUTION ( ID # 1195) 2. 1. 6. The percentage of exempt properties in the City of Fort Walton Beach was 28.00 %. 2. 1. 7. The City of Fort Walton Beach' s 28. 00% of exempt properties exceeds the statewide average of 24. 51% and therefore, the City is eligible for a fiscal hardship exemption under Criteria 2 above. 3. FINANCIAL INFORMATION: 3. 1. The resolution and attached certificate will allow the City to qualify for a reduction of fee waivers ( typically from $250 per permit to $ 100 per permit). 4. RECOMMENDATION: 4. 1. Staff recommends City Council approval of Resolution 2011 - 10, certifying that the City meets the fiscal hardship criteria of Section 218. 075 of the Florida Statutes, qualifying for a reduction or waiver of permit processing fees for FY 2010 -11. ATTACHMENTS: 2010 statewide assessed value PDF) form 62 -346 900 -10 reduce fees (PDF) Resolution. 2011 -10 Fiscal Hardship PDF) SIGNATURE BLOCK: Stella Jones Pending 04/ 05/ 20112: 44 PM Tim Bolduc Pending 04/ 05/ 20112: 44 PM Michael Beedie Pending 04/ 05/ 20112: 44 PM Finance Pending 04/ 05/ 2011 2: 44 PM Completed 04/106/ 2011 1: 57 PM City Attorney Carole Jones Completed 04/ 06/ 201. 1 10: 13 AM Carole Jones Skipped 04/ 06/ 2011 10: 11 AM Completed 04/ 06/ 20112: 35 PM City Manager City Council Pending