Okaloosa County BOCC — August 6, 2013 — Resolution for Airport Revenue Refunding Bonds, Series 2013 — reading text

from the operation of its Airport System. In addition, the Series 2013 Bonds will be secured by a lien upon and pledge of a Passenger Facility Charge levied by the County pursuant to federal legislation and collected by air carriers serving the Northwest Florida Regional Airport. The lien on the Net Revenues is on a parity with the lien thereon of the County's Taxable Airport Revenue Bonds, Series 2007, outstanding in the aggregate principal amount as of November 1, 2013, of $8,740,000. See "SECURITY FOR THE SERIES 2013 BONDS" “herein. THE SERIES 2013 BONDS AND THE INTEREST THEREON DO NOT CONSTITUTE A DEBT, LIABILITY OR OBLIGATION OF THE STATE OF FLORIDA, THE COUNTY, OR ANY OTHER POLITICAL SUBDIVISION THEREOF (OTHER THAN A SPECIAL OBLIGATION OF THE COUNTY) AND NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE STATE OR THE COUNTY OR ANY OTHER POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE SERIES 2013 BONDS OR THE INTEREST THEREON. [Payment of principal of and interest on the Series 2013 Bonds will be insured in accordance with the terms of a financial guaranty insurance policy to be issued simultaneously with the delivery of the Series 2013 Bonds by (" "). See "FINANCIAL GUARANTY INSURANCE" herein. ] [Insert Logo] SEE THE INSIDE COVER PAGE FOR MATURITIES, PRINCIPAL AMOUNTS, INTEREST RATES, PRICES OR YIELDS AND CUSIP NUMBERS. The Series 2013 Bonds are offered for delivery when, as and if issued and received by the Underwriters, subject to the approval of legality by Nabors, Giblin & Nickerson, P.A., Tampa, Florida, Bond Counsel and Disclosure Counsel. Certain legal matters will be passed upon for the County by its County Attorney, John R. Dowd, Esq. It is expected that the Series 2013 Bonds will be available for delivery through DTC in New York, New York on or about ; 2013. This cover page is not intended to be a summary of the terms or security provisions of the Series 2013 Bonds. Investors are advised to read the entire Official Statement to obtain information essential to the making of an informed investment decision. RBC CAPITAL MARKETS Dated: , 2013 *Preliminary, subject to change. $ __—* OKALOOSA COUNTY, FLORIDA AIRPORT REVENUE REFUNDING BONDS, SERIES 2013 (AMT) MATURITIES, PRINCIPAL AMOUNTS, INTEREST RATES YIELDS AND INITIAL CUSIP NUMBERS $ Serial Bonds Date (October 1) Principal Amount Interest Rate Yield Initial CUSIP No.t % Term Bonds Due October 1,20 __, Yield % Initial CUSIP No. tT % Term Bonds Due October 1,20 __, Yield % Initial CUSIP No. tT FFF % Term Bonds Due October 1,20 __, Yield % Initial CUSIP No. t *Preliminary, subject to change. +The County is not responsible for the use of CUSIP Numbers, nor is a representation made as to their correctness. The CUSIP Numbers are included solely for the convenience of the readers of this Official Statement. OKALOOSA COUNTY, FLORIDA 1804 Lewis Turner Boulevard, Suite 100 Ft. Walton Beach, Florida 32547 (850) 651-7105 THE BOARD OF COUNTY COMMISSIONERS Don R. Amunds, Chairman Dave Parisot, Vice Chairman Wayne Harris, Commissioner Nathan Boyles, Commissioner Kelly Windes, Commissioner CLERK OF THE CIRCUIT COURT Don W. Howard COUNTY ADMINISTRATOR Ernie Padgett AIRPORTS DIRECTOR Sunil Harman, A.A.E., [AP COUNTY ATTORNEY John R. Dowd, Esq. FINANCE OFFICER Gary J. Stanford FINANCIAL ADVISOR Public Financing Management, Inc. Largo, Florida BOND AND DISCLOSURE COUNSEL Nabors, Giblin & Nickerson, P.A. Tampa, Florida No dealer, broker, salesman or other person has been authorized by the County to give any information or to make any representation with respect to the Series 2013 Bonds other than those contained in this Official Statement, and if given or made, such information or representations must not be relied upon as having been authorized by any of the foregoing. This Official Statement does not constitute an offer to sell nor the solicitation of an offer to buy, nor will there be any sale of the Series 2013 Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information set forth herein has been obtained from the County and other sources which are believed to be reliable, and while not guaranteed as to completeness or accuracy, is believed to be correct. The Underwriters have reviewed the information in this Official Statement in accordance with and as a part of their responsibilities to investors under federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriters do not guarantee the accuracy or completeness of such information, Any statements in this Official Statement involving estimates, assumptions and matters of opinion, whether or not expressly so stated, are intended as such and are not representations of fact, and the County expressly makes no representation that such estimates, assumptions or opinions will be realized or fulfilled. The information and expressions of opinion stated herein are subject to change without notice. The delivery of this Official Statement will not, under any circumstances, create any implication that there has been no change in the affairs of the County since the date hereof. THE SERIES 2013 BONDS HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, NOR HAS THE INDENTURE BEEN QUALIFIED UNDER THE TRUST INDENTURE ACT OF 1939, AS AMENDED, IN RELIANCE UPON EXEMPTIONS CONTAINED IN SUCH ACTS. THE REGISTRATION OR QUALIFICATION OF THE SERIES 2013 BONDS IN ACCORDANCE WITH APPLICABLE PROVISIONS OF THE SECURITIES LAWS OF THE STATES, IF ANY, IN WHICH THE SERIES 2013 BONDS HAVE BEEN REGISTERED OR QUALIFIED AND THE EXEMPTION FROM REGISTRATION OR QUALIFICATION IN CERTAIN OTHER STATES CANNOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE STATES NOR ANY OF THEIR AGENCIES HAVE PASSED UPON THE MERITS OF THE SERIES 2013 BONDS OR THE ACCURACY OR COMPLETENESS OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. References herein to laws, rules, regulations, resolutions, agreements, reports and other documents do not purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by reference to the particular document, the full text of which may contain qualifications of and exceptions to statements made herein. Where full texts have not been included as appendices to this Official Statement they will be furnished on request from Sunil Harman, Airports Director, Okaloosa County Airports, 1701 State Road 85, Eglin Air Force Base, Florida 32542-1413, Telephone No. (850) 651-7160. TABLE OF CONTENTS Page INTRODUCTION ooo cccecnecsecesecseecsesseersecsseseeesessaseseseesesseassrsesssseseeesseseasceeseasssssesensseesersenseess 1 PLAN OF REFUNDING .....ccccccccccsssssssessessessccsecssecsccarsseesscssseeesscssssasestessessscascatcatcnetensessssuensenees 2 DESCRIPTION OF THE SERIES 2013 BONDS .......ccccsssecsessesseesecssecceesseseeseesseesecesessesseseasenssees 2 Gerneral ooo. eccccsscsessseseesevsesecesssecseseeessscssesessessessessssssessesesscsecaessseecseessssasssseasssseaserseasasasaeeassasaes 2 Book-Entry Only System .....ccccccsssssssssssssssesscscsecsesseesssesseseescsssssessesacsessecsesssscessseeesaesaeeacsesecseseaes 3 Redemption Provisions.......ccccscccssssessessessessessssscsscssssscsscsessesscsscseesesssecesesseestseessseneseessseaseseseeaseeens 6 SOURCES AND USES OF FUNDS wu... ecceccsessssscesssssesscssescseessesesscssesecssessesesesseceecseesessecasesessenesas 8 DEBT SERVICE SCHEDULE... eee eecccccsccesscscesscssessesessesssssenscscsecesecesesessaeesrseesssaseaeeseserssaseesees 9 SECURITY FOR THE SERIES 2013 BONDS .......ccccccssssscssesesseessessessecsscesessscesssssesesesscseseecsesense 9 Limited Obligations .........ccesessssssscsscssessesseescsssssssecssessesecsscsscrsvscsscssesssscessensessseecsesecessensessesesseeaeas 9 Net REVenues oo... eee escecssesseccssecsseesscesseccssecssescsseeesteessesensesstssasseasesssesecesseseatseaeesseecsatesseessecsnessesas 10 Series 2007 Bonds; CFC Revenue ........cccccccsssssssssessesssceseccscsssessesssecessceeesssassssscesssssaseessossevenees 11 Pledged PFC Revenue.......cccccscsssssesssssessssscssssscsecsscssecssssesssssssessessesscsussuesucssesssesessessessecaesesseseess 11 Rate Covenant oo... cccccccessssscssessesssssnecssseseessessesesseasensscsssaeesessevseensesseesessaeessscseesatsaesseesaesareneeness 11 Debt Service Reserve Fund .......cccsssssssscescsscsecsssssscessescssescsseecscscsscsssseescssesecassecascsseesseeseeesssseeass 12 Additional Bonds........ccccessssssessssssscssesessesssssessescsssscsessessevscsesecsessvscsessesscaessesscsecsesessucssesesessesssecaes 14 Other Indebtedness... eccsssescsssssessescescssesessesesecsesassacsesssssescsseecsseasseeesscaessseessecsececsecsseasaeeesaeas 16 Application of Revenues Upon Default occ ccccesssccssssecsesscsecesssessessssscessseecsesseesssseesessecsesatsess 16 FINANCIAL GUARANTY INSURANCE. .....cccccssscsssssecseeseessenscesessesssesssensecseessesesessessarsaeseaseases 16 BOND INSURANCE RISK FACTORS .......cccccccssssseesssssessecseesscssscscsssesssensseeecssecatecsecseteseeeessteaees 16 FLOW OF FUNDS 0c eccceccesssscesseescessecnseeseecsssssessessseensceseessseeseaecsteseestesaesnscesucauesstesueesasenesneenees 17 REVENUES... cee ceesceseseseceneeeeeeesssescesssessesseessesensessssessseesseseseessensssecsssersecseeascseseseeeseessessensesareessonss 17 Passenger Facility Charge Revenues .......ccccccccsssssesssscesessesesscsssseseeessseesesscesssessessseacsrenecseseesessens 19 THE AIRLINE AGREEMENTS ........ccsccsssssssssscsssesscssesssessecsscesecsssaeseceseesssenseenscnssceescatensesatessenees 20 THE COUNTY ....seescseee sessceesnssusseeessssssecsssnsssessssnuessesssuusesecsssssescsessssnsssesesssssesessssssssensssneccestssnessees 20 Back ground... ccsecesscsscscssscssessssesssssccsasesessecsecsucscsstcescsessesessssescescsssssessssacsesesessseseseuseacaeseneausacees 20 POpUlation nsec eececcscseesssessesscsssessesssessecseseceseecssescsscsscssesessesscsacsucsesesesasssenssaeessseecsessseseteneaes 21 Governing Body oo. esesesesseeceeesscescescesseeseesesesscsecsscscscsesecsessessesesevseesssessessesesssseesresesaeeaseesasees 21 Budgetary Process ...0...scsssccssssssssescescsscsseseesesecssesssessessesssscsscssescsesessessesscseaeseeseesseasseeeasseeeseneases 21 Armual Audit occ cccccsccssssccssessccesssceesssssssesscsesssesscsecesesecsessussscsessesecsesseseeeesessessecstenseseseassaseneseeas 22 Description of Financial Practices .......cceccscesssssssesscssssssescessesesscescseesscseesassecsssseseseseeseceascrsereenses 22 Investment Policy... eesesssessssessescsecseescescsscsecsesessessesesseecessesesesassessesessecseeeceesaecsecaeeensessresesaees 22 NORTHWEST FLORIDA REGIONAL AIRPORT ......ccccccssscssessesesssessesececeeeeseessesesseesessrsaseees 22 Goerneral ooo. scsesesestesseeeesseeeeesssseessesessscessssssssssssescssenessesseessesenecsecssensssaseaseasenseseeseenassasenssaseneas 23 Management oo... eeesscccesssnesesesteeeessceseeneeeeeeseeeesesaeeceseaaeaseeeaseeesseeseseeaeeeeseeesseeeneaeeseneneneeseseaeess 23 Service ALOd ....ececceescceseecssccesssesceensceseeensseeeeseesseeesseeesersseeesseeseesseessesessessessevseceesssasesssseseeesseen sees 25 REGIONAL SHARES OF ENPLANEMENTS ......cccccsssssstesteeceresesescesersseseseenssseessssesssssseeecsseeanes 26 Airfield Facilities .........ccccccssecsccssccsssessecseeessccsnessaeceseceteeseeeseeeeeessesseessndsssesssaesusesseaseeesssssneesnesegs 27 Terminal Facilities 2.0... csccsssccscssseessceseseecseeseesecesessecsaeceeeeececeasecessasseecsesaseseseseseusseaseessescanes 27 Support Facilities... cecesssccssceseeseeseecseceseseessseseeseeseesseseeeeceasesesessecessssesesesseesseesserssseeseeeaees 27 Other Airports ....... cc