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

eccceesccsteensecenecssesenscnsecsnceeseeetecsnaeceseeeseesseeseeeceaeessesseesseeessssssecdsesssesssscnssessteeste 28 Airlines Serving the Airport ........cccceccccssccssecsseccseccsseenscessecsseceneceseeeaeesseessesenscneestnseeseesseesensseeeses 29 Emplanements 0.0.0... cceesccsccsscstscneecseesecseesseeeceseeseseaseseenseceeeesaesscesessaeaesseeessesssseseessaeeeseasensesseenees 29 Airline Market Share ........cccccccscscesecsscssesscssecsssssecnsscaeeeseeeeeseeeeecesenseseeseeeasesesseeseessecssceesssesseasens 30 Top 10 Origin and Destination Markets... ce ceccesesesesecenseeeeeseneensseeessesseesescsesessnsssessessesessesenes 32 Aircraft Operations ...... cc eecccceescssesecceseeseseeseeecnecenscneceneessessesesessesssecsseeseessssessecsssesssansessaneseseneeegs 33 Landed Weight .......ccccecscssccssesessscsscssecseeecesesseceseseceseeseeeseessecceeeceeessesseessesecesacsacesersessaseeeasanenes 33 Passenger Facility Charges 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and Charges Disputes ...........sccssesessseseeeeerereereessesseeentaees 43 Capacity of National Air Traffic Control and Airport Systems occ eeesesseeneeetetsessreeeeensens 44 Availability Of PFCS 0.0... ..cccccccssssecsnesstecssecsseeeecnsceeseeeeaesesaseseessaesseeesnesenesesusssaseassssessesonssessatenes 44 Future Tax Developments 0.0.0.0... ci cecesssssseecesseteceeeeeeeeeaeseaceneesseesesessnaseatonsevsesresenesneseeucneasesssenenges 44 LITIGATION 00... cccecseccescsccsscsseeecseesecseesecnscaeenessseaeesessecaesneesessersesneesecsessseeeerseesessssosessussesneseseseseesess 44 APPROVAL OF LEGALITY... ccccccscesssessecseeeesseeessecseetceeeeneesseeaessesesesecesassseessenesesensensneesenes 45 TAX EXEMPTION .....cccccscscssesseseescesceccesesesenecseeecesseceeseenesseeaeesesseseeeeseeeseeseoseeneraecseseeseseeasesseeses 45 Opinion of Bond Counsel 0.0... eeeecssecceeseeceeseeeeeeceneceseessesseseassssesaesesseessesseesessessisseessaressseases 45 Internal Revenue Code Of 1986.0... ccccscescssccercesecsecseecesseeeeeeceeeesecsecescnsseeesessesssessensessesseaseeseegea 46 Collateral Tax Consequences ........ccceceseseceseeseceeeseesseeseeeseeesscesesseaseatenseseseeesessneesseseesseeaesnsneees 46 Other Tax Matters......c.cccccssccssscsssccsscesecsssecseesseecsaeseecsseeeeeseneeseceecssseceesssessresceeseesesseseeceessessessges 46 Premium Bonds ........cccscessssccsssesescsescceescsscesesseeseeseeeeseeseaeeecesseeseessevseeesessesesassesessesecesseseeseeasentens 47 Discount Bonds ......cccccccssecsssessscssccessccseceseecsseceacesseeesseceeeecaessaesseesseenaeeseeseseseaeesneessesesaaseeeenssees 47 RATINGS oc ccccccccssesessccseesesseeecseesecnessessesaeeaeeseeaeeaessenaeeaseaesnessesrecesaeeaseaesneessessessessssssanseesseseeeetsns 48 FINANCIAL ADVISOR u...icccccscssesseteceenseeceeseeeenseeseetseessesseeesecueneesseceeesaeseeseadcesseneesssenenterenenes 48 UNDERWRITING uo. ccccccscssscscescesscenessccssessecscesecsacssecsuecesesacensceseeeeeneesseseseeeaseseessseaeessecerseneaeass 49 DISCLOSURE MATTERS ......ccecsccssescsscesecseeceeseeeeesessecsessceerceeseeseeesecaeeaceneesesesseeseeseasssteassnssessas 49 il Certificate as to Official Statement ........ccceeeccssccesessceccessccceescccacecescecesssceacessrseessccessaeeusecesseess 49 Continuing Disclosure .....cccccscscessessessessesssssessesevscsesssssesscesssscsesssssecssssscsscsssesessssesscssssseaeesseaseaees 49 APPENDIX A EXCERPTS FROM FINANCIAL STATEMENTS OF THE COUNTY RELATING TO THE AIRPORTS SYSTEM ENTERPRISE FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012 APPENDIX B FORMS OF THE MASTER INDENTURE OF TRUST, THE FIRST SUPPLEMENTAL INDENTURE, THE SECOND SUPPLEMENTAL INDENTURE AND THE THIRD SUPPLEMENTAL INDENTURE APPENDIX C FORM OF BOND COUNSEL OPINION APPENDIX D FORM OF CONTINUING DISCLOSURE CERTIFICATE iti OFFICIAL STATEMENT Relating to Okaloosa County, Florida $ * Airport Revenue Refunding Bonds, Series 2013 (AMT) INTRODUCTION The purpose of this Official Statement, which includes the cover page and appendices hereto, is to furnish information concerning Okaloosa County, Florida (the "County"), its Airports System and certain other information in connection with the sale by the County of its $ * Airport Revenue Refunding Bonds, Series 2013 (AMT) (the "Series 2013 Bonds"). All capitalized terms used herein and not otherwise defined shall have the meanings set forth in APPENDIX B. The Series 2013 Bonds will be issued pursuant to Chapter 125, Part I, Chapter 332, and Sections 215.84, 215.431 and 218.385, Florida Statutes, as amended from time to time, and other applicable provisions of law (the "Act"), and a Master Indenture of Trust (the "Master Indenture"), as supplemented by a First Supplemental Indenture, each dated as of August 1, 2003, by and between the County and JPMorgan Chase Bank, as predecessor trustee, as supplemented by the Second Supplemental Indenture (the "Second Supplemental Indenture), by and between the County and The Bank of New York, New York, New York, as predecessor trustee, dated as of December 1, 2007, and as further supplemented by the Third Supplemental Indenture (the "Third Supplemental Indenture"), by and between the County and The Bank of New York Mellon Trust Company, as successor trustee (the "Trustee"), dated as of November 1, 2013 (collectively called the "Indenture"). The Series 2013 Bonds are to be issued and secured by a pledge of and lien upon the Trust Estate under the Master Indenture, consisting primarily of Net Revenues derived from the operation of the County's Airports System. In addition, the Series 2013 Bonds are secured by a lien upon and pledge of a portion of the revenues derived from a Passenger Facility Charge (the "Pledged PFC Revenues") collected by air carriers serving the Northwest Florida Regional Airport (the "Airport"). The County has previously issued its Taxable Airport Revenue Bonds, Series 2007 (the "Series 2007 Bonds"), secured by the Net Revenues on a parity with the lien thereon of the Series 2013 Bonds. The Series 2007 Bonds are also secured by revenues derived from a customer facility charge ("CFC") but are not payable from the Pledged PFC Revenues. The Series 2013 Bonds are not secured by the CFC Revenues. See "SECURITY FOR THE SERIES 2013 BONDS". The Series 2013 Bonds, the Series 2007 Bonds and any additional bonds which may be issued under the Indenture on a parity therewith ("Additional Bonds") are herein sometimes collectively referred to as the "Bonds". THE SERIES 2013 BONDS AND THE INTEREST THEREON DO NOT CONSTITUTE A DEBT, LIABILITY OR OBLIGATION OF THE STATE, THE COUNTY, OR ANY OTHER POLITICAL SUBDIVISION THEREOF (OTHER THAN A SPECIAL *Preliminary, subject to change. 1 OBLIGATION OF THE COUNTY) AND NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE STATE, THE COUNTY OR ANY OTHER POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE SERIES 2013 BONDS OR THE INTEREST THEREON. The County is a political subdivision of the State of Florida, located midway between Pensacola and Panama City in the State's panhandle area. The County provides general governmental services to its citizens, including the operation of its Airports System, which consists primarily of the Northwest Florida Regional Airport (the "Airport") located on Eglin Air Force Base on property leased from the U.S. Department of the Air Force and two general aviation airports, the Destin-Ft. Walton Beach Airport and the Bob Sikes Airport. The Airport had approximately 385,428 enplaned passengers in calendar year 2012. See "NORTHWEST FLORIDA REGIONAL AIRPORT" herein. The proceeds of the Series 2013 Bonds will be used by the County to (i) refund the County's Airport Revenue Bonds, Series 2003 and the loan made to the County under a Loan Agreement among the County, the Florida Local Government Finance Commission and JPMorgan Chase Bank, N.A. (collectively, the "Refunded Indebtedness"), (ii) pay the costs of issuing the Bonds, and (iii) fund the other accounts as provided in the Trust Indenture, including certain amounts with respect to the Debt Service Reserve Fund established thereby. PLAN OF REFUNDING Proceeds of the Series 2013 Bonds, together with other legally available funds of the County, are anticipated to be applied to pay all amounts necessary to repay in full the loan made to the County pursuant to the Loan Agreement (Airport Revenues), dated as of December 4, 2012, by and among the County, the Florida Local Government Finance Commission and JPMorgan Chase Bank, N.A. (the "Loan"), with the balance of the proceeds to be deposited into the escrow fund created under the Escrow Deposit Agreement, dated as of November 1, 2013 between the County and The Bank of New York Mellon Trust Company, N.A., as escrow agent, and applied to the principal and interest on the County's Airport Revenue Bonds, Series 2003 on , 2013, their redemption date. DESCRIPTION OF THE SERIES 2013 BONDS General The Series 2013 Bonds will be issued as fully registered bonds without coupons in denominations of $5,000 or any integral multiple thereof, will be dated the date of their delivery, and will bear interest from that date to their respective maturities as set forth on the inside front cover page hereof, subject to mandatory and optional redemption prior to maturity as set forth below under "DESCRIPTION OF THE SERIES 2013 BONDS - Redemption Provisions". Interest will be payable semiannually on April 1 and October 1 of each year, commencing on April 1, 2014. Except as otherwise provided below under "DESCRIPTION OF THE SERIES 2013 BONDS - Book-Entry Only System", interest will be payable by check or draft mailed to the registered owners thereof at the address shown on the registration books kept by The Bank of New York Mellon Trust Company, N.A. (the "Registrar") at the close of business on the fifteenth (15th) day of the calendar month, whether or not a Business Day, next preceding such Interest Payment Date (the "Regular Record Date"); provided, however, that payment of the Principal Amount of, Redemption Premium, if any, and interest on the Series 2013 Bonds may, at the option of any registered owner of Series 2013 Bonds in an aggregate principal amount of at least $1,000,000, be transmitted by wire transfer within the continental United States to such owner to the bank account number on file with the Registrar as of the Regular Record Date. The Bank of New York Mellon Trust Company, N.A. is also serving as paying agent (the "Paying Agent") and authenticating agent (the "Authenticating Agent") for the Series 2013 Bonds. Book-Entry Only System Certain portions of the information under this heading concerning DTC and the DTC’s book-entry system have been furnished by DTC for use in this Official Statement. The County and the Underwriters make no representations as to the accuracy of such information. Unless the book-entry system described herein is terminated, The Depository Trust Company ("DTC"), New York, New York, will act as securities depository