Okaloosa County BOCC — November 4, 2014 — Preliminary Official Statement — reading text

.......................................................................................................... 1 AUTHORITY FOR ISSUANCE OF THE SERIES 2014 BONDS............................... 2 PURPOSE OF THE SERIES 2014 BONDS.................................................................. 2 SOURCES AND USES OF FUNDS ............................................................................. 2 DEBT SERVICE SCHEDULE ...................................................................................... 3 DESCRIPTION OF THE SERIES 2014 BONDS ......................................................... 4 General........................................................................................................................ 4 Book-Entry Only System............................................................................................ 4 No Assurance Regarding DTC Practices.................................................................... 7 Registration, Transfer and Exchange.......................................................................... 8 Redemption Provisions ............................................................................................... 9 Notice and Effect of Redemption ............................................................................. 10 SOURCES OF AND SECURITY FOR PAYMENT OF THE SERIES 2014 BONDS................................................................................................................... 12 General...................................................................................................................... 12 Limited Obligations .................................................................................................. 13 Establishment of Funds and Accounts...................................................................... 13 Application of Pledged Funds................................................................................... 14 Issuance of Additional Bonds ................................................................................... 18 Investment of Moneys .............................................................................................. 20 PLEDGED FUNDS...................................................................................................... 21 Sources of Payment .................................................................................................. 21 Historical Sales Tax Revenues ................................................................................. 24 Distribution of Sales Tax Revenues.......................................................................... 24 Debt Service Coverage from Sales Tax Revenues ................................................... 25 MUNICIPAL BOND INSURANCE............................................................................ 25 THE PROJECT ............................................................................................................ 25 INVESTMENT CONSIDERATIONS ......................................................................... 26 General...................................................................................................................... 26 Limited Special Obligations ..................................................................................... 26 Bond Insurance ......................................................................................................... 26 Economic Factors ..................................................................................................... 28 THE COUNTY............................................................................................................. 28 Background ............................................................................................................... 28 Eglin Complex .......................................................................................................... 28 Population ................................................................................................................. 29 Government .............................................................................................................. 29 Budgetary Process..................................................................................................... 30 Annual Audit............................................................................................................. 30  Description of Financial Practices ............................................................................ 30 Investment Policy ..................................................................................................... 31 LEGAL MATTERS ..................................................................................................... 31 Legal Opinions.......................................................................................................... 31 Litigation................................................................................................................... 32 TAX MATTERS RELATED TO THE SERIES 2014 BONDS .................................. 33 Opinion of Bond Counsel ......................................................................................... 33 Internal Revenue Code of 1986 ................................................................................ 33 Collateral Tax Consequences.................................................................................... 33 Other Tax Matters ..................................................................................................... 34 Bond Premium .......................................................................................................... 35 GENERAL PURPOSE FINANCIAL STATEMENTS ............................................... 35 RATINGS..................................................................................................................... 35 ADVISORS AND CONSULTANTS........................................................................... 36 UNDERWRITING ....................................................................................................... 36 DISCLOSURE MATTERS.......................................................................................... 37 Certificate as to Official Statement........................................................................... 37 Continuing Disclosure .............................................................................................. 37 APPENDIX A -- AUDITED GENERAL PURPOSE FINANCIAL STATEMENTS FOR YEAR ENDED SEPTEMBER 30, 2013 APPENDIX B -- GENERAL INFORMATION PERTAINING TO OKALOOSA COUNTY, FLORIDA APPENDIX C -- FORM OF RESOLUTION APPENDIX D -- FORM OF BOND COUNSEL OPINION APPENDIX E -- SPECIMEN FINANCIAL GUARANTY INSURANCE POLICY APPENDIX F -- FORM OF CONTINUING DISCLOSURE CERTIFICATE  OFFICIAL STATEMENT relating to $_________* OKALOOSA COUNTY, FLORIDA SALES TAX REVENUE BONDS, SERIES 2014 INTRODUCTION The purpose of this Official Statement, which includes the cover page and the Appendices hereto, is to furnish information with respect to the issuance by Okaloosa County, Florida (the "County"), of its $_________* Sales Tax Revenue Bonds, Series 2014 (the "Series 2014 Bonds"). The meaning of capitalized terms used herein shall be as defined in the Resolution, the form of which is attached hereto as Appendix C, unless otherwise defined herein or where the context would clearly indicate otherwise. The references, excerpts and summaries of all documents referred to herein do not purport to be complete statements of the provisions of such documents, and reference is made to the originals of all such documents for full and complete statements of all matters of fact relating to the Series 2014 Bonds, the security for the payment of the Series 2014 Bonds, and the rights and obligations of Registered Owners thereof. Copies of such documents, agreements, reports and statements that are not included in their entirety in this Official Statement may be obtained from the office of the County's Financial Advisor. The assumptions, estimates, projections and matters of opinion contained in this Official Statement, whether or not so expressly stated, are set forth as such and not as matters of fact, and no representation is made that any of the assumptions or matters of opinion herein are valid or that any projections or estimates contained herein will be realized. Neither this Official Statement nor any other statement, which may have been made verbally or in writing in connection with the Series 2014 Bonds, other than the Resolution, is to be construed as a contract with the Registered Owners of the Series 2014 Bonds. For a description of the terms and conditions of the Series 2014 Bonds, reference is made to the Resolution, a form of which is included in Appendix C to this Official Statement. The description of the Resolution and the Series 2014 Bonds contained herein do not purport to be comprehensive or definitive, and reference is made to the Resolution, on file with the County, for the complete terms thereof. The term "Bonds" as used herein refers to the Series 2014 Bonds together with the County's Outstanding Sales Tax Revenue Bonds, Series 2009A and Taxable Sales Tax *Preliminary, subject to change. 1 Revenue Bonds, Series 2009B (Direct Payment Build America Bonds), and any Additional Bonds issued in the future under the Resolution. AUTHORITY FOR ISSUANCE OF THE SERIES 2014 BONDS The Series 2014 Bonds are authorized to be issued pursuant to Chapter 125, Part I, Florida Statutes, and other applicable provisions of law (the "Act"), and Resolution No. 09-190, duly adopted by the Board of County Commissioners (the "Board") of the County on November 17, 2009, as amended and supplemented, and particularly as amended and supplemented by Resolution No. 14-___, duly adopted on November 4, 2014 (collectively, the "Resolution"). PURPOSE OF THE SERIES 2014 BONDS The proceeds of the Series 2014 Bonds will be used by the County pursuant to the Resolution to provide funds for the purpose of (i) financing the costs of the acquisition and construction improvements to County facilities, including the Crestview courthouse, (ii) refunding the County's Sales Tax Revenue Bond Anticipation Note, Series 2014 and (iii) paying certain expenses related to the issuance and sale of the Series 2014 Bonds. See the information under the heading "THE PROJECT", herein. SOURCES AND USES OF FUNDS The table that follows summarizes the sources and uses of funds to be derived from the sale of the Series 2014 Bonds. SOURCES: Principal Amount of Series 2014 Bonds $ Original Issue Discount/Premium TOTAL SOURCES $ USES: Refunding of the 2014 Note $ Deposit to Construction Account Underwriters' Discount Cost of Issuance(1) TOTAL USES $ (1) Includes legal and financial advisory fees, rating agencies fees, printing costs, and premiums for financial guaranty insurance policy and reserve account surety bond. 2  DEBT SERVICE SCHEDULE The following table sets