In the opinion of Bond Counsel, under existing law and assuming compliance with certain tax covenants described herein, interest on the Series 2001 Bonds is excluded from gross income for federal income tax purposes, except that such exclusion shall not apply to any Series 2001 Bond during any period such Series 2001 Bond is held by a “substantial user” of the facilities financed with the proceeds of the Series 2001 Bonds or a “related person” within the meaning of the Section 147(a) of the Internal Revenue Code of 1986, as amended (the “Code”). Bond Counsel is also of the opinion that the Series 2001 Bonds are not “specified private activity bonds” within the meaning of Section 57(a)(5) of the Code and that the interest thereon is not a preference item for purposes of the federal alternative minimum tax. Bond Counsel is also of the opinion that the Series 2001 Bonds and the interest thereon are exempt from taxation under the existing laws of the State of Florida, except as to estate taxes and taxes imposed by Chapter 220, Florida Statutes, on interest, income or profits on the debt obligations owned by corporations, banks and savings associations. See, however, “Tax Exemption” herein regarding certain other tax considerations.
In the opinion of Bond Counsel, under existing law, if applicable to the Series 2002 Bonds when issued, and assuming compliance with certain tax covenants described herein, interest on the Series 2002 Bonds, when and if issued, will be excluded from gross income for federal income tax purposes, except that such exclusion shall not apply to any Series 2002 Bond during any period such Series 2002 Bond is held by a “substantial user” of the facilities financed with the proceeds of the Series 2002 Bonds or a “related person” within the meaning of the Section 147(a) of the Code. Bond Counsel is also of the opinion that under existing law, if applicable to the Series 2002 Bonds when issued, that the Series 2002 Bonds, when and if issued, will not be “specified private activity bonds” within the meaning of Section 57(a)(5) of the Code and that the interest thereon will not be a preference item for purposes of the federal alternative minimum tax. Bond Counsel is also of the opinion that under existing law, if applicable to the Series 2002 Bonds when issued, that the Series 2001 Bonds, when and if issued, and the interest thereon will be exempt from taxation under the existing laws of the State of Florida, except as to estate taxes and taxes imposed by Chapter 220, Florida Statutes, on interest, income or profits on the debt obligations owned by corporations, banks and savings associations. See, however, “Tax Exemption” herein regarding certain other tax considerations.
$83,965,000
PALM BEACH COUNTY, FLORIDA
Airport System Revenue Refunding Bonds, Series 2001
and
$60,150,000
PALM BEACH COUNTY, FLORIDA
Airport System Revenue Refunding Bonds, Series 2002
Dated: July 1, 2001 in the case of the Series 2001 Bonds (as defined below) / Due: October 1, as shown on the inside coverJuly 1, 2002 in the case of the Series 2002 Bonds (as defined below)
The Palm Beach County, Florida, $83,965,000 Airport System Revenue Refunding Bonds, Series 2001 (the “Series 2001 Bonds”) and $60,150,000 Airport System Revenue Refunding Bonds, Series 2002 (the “Series 2002 Bonds”, and together with the Series 2001 Bonds, the “Bonds”) are being issued as fully registered bonds and will be initially issued to and registered only in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York (“DTC”), which will act as securities depository for the Bonds. The Bonds will be available to purchasers in principal denominations of $5,000 and integral multiples thereof under the book-entry system maintained by DTC through brokers and dealers who are or act through, DTC Participants. Purchasers will not receive physical delivery of the Bonds. For so long as any purchaser is the Beneficial Owner (as defined herein) of a Bond, such purchaser must maintain an account with a broker or dealer who is, or acts through, a DTC Participant in order to receive payment of the principal of and interest on such Bond. See the caption “BOOK-ENTRY ONLY SYSTEM,” herein.
Interest on the Series 2001 Bonds is payable October 1, 2001 and on each April 1 and October 1 thereafter until maturity. Interest on the Series 2002 Bonds is payable October 1, 2002 and on each April 1 and October 1 thereafter until maturity. The Bonds are not subject to redemption prior to their stated dates of maturity.
The Bonds are being issued by Palm Beach County, Florida (the “County” or the “Issuer”) for the purpose of providing the moneys which, together with other funds legally available therefore, as will be sufficient: (i) in the case of the Series 2001 Bonds, (a) to refund the Airport System Revenue Bonds, Series 1991 maturing October 1, 2004 (excluding the October 1, 2001 sinking fund installment) and October 1, 2010 (the “Series 1991 Refunded Bonds”), (b) to pay the termination fee for the cancellation of the Confirmation relating to the Weekly Adjustable/Fixed-Rate Airport System Refunding Bonds, Series 2001 (the “Series 2001 Weekly Adjustable/Fixed-Rate Refunding Bonds”), which will no longer be issued, (c) to pay the premium for a municipal bond insurance policy for the Series 2001 Bonds, (d) to fund the Debt Service Reserve Requirement (as defined herein) for the Series 2001 Bonds and (e) to pay all or a portion of the costs of issuance of the Series 2001 Bonds, (ii) in the case of the Series 2002 Bonds, (a) to refund the Airport System Revenue Bonds, Series 1992 maturing October 1, 2014 (the “Series 1992 Refunded Bonds” and, together with the Series 1991 Refunded Bonds, the “Refunded Bonds”), (b) to pay the termination fee for the cancellation of the Confirmation relating to the Weekly Adjustable/Fixed-Rate Airport System Revenue Refunding Bonds, Series 2002 (the “Series 2002 Weekly Adjustable/Fixed-Rate Refunding Bonds”), which will no longer be issued, (c) to pay the premium for a municipal bond insurance policy for the Series 2002 Bonds, (d) to fund the Debt Service Reserve Requirement for the Series 2002 Bonds and (e) to pay all or a portion of the costs of issuance of the Series 2002 Bonds.
The Series 2001 Bonds are being issued in lieu of the Series 2001 Weekly Adjustable/Fixed-Rate Refunding Bonds and the Series 2002 Bonds are being issued in lieu of the Series 2002 Weekly Adjustable/Fixed-Rate Refunding Bonds.
The principal of, premium, if any, and interest on the Bonds are payable from and secured by a pledge of all Net Revenues Available for Debt Service (as defined herein), and all Funds and Accounts established by the Resolution. See “SECURITY FOR THE BONDS” herein.
THE FULL FAITH AND CREDIT OF THE COUNTY IS NOT PLEDGED FOR THE PAYMENT OF THE BONDS AND THE BONDS DO NOT CONSTITUTE INDEBTEDNESS OF THE COUNTY WITHIN THE MEANING OF ANY CONSTITUTIONAL, STATUTORY OR OTHER PROVISION OR LIMITATION; NO BONDHOLDER SHALL EVER HAVE THE RIGHT TO REQUIRE OR COMPEL THE EXERCISE OF THE AD VALOREM TAXING POWER OF THE COUNTY OR TAXATION IN ANY FORM OF ANY REAL PROPERTY THEREIN FOR THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR THE INTEREST ON THE BONDS OR THE MAKING OF ANY SINKING FUND OR RESERVE PAYMENTS PROVIDED FOR IN THE RESOLUTION.
The scheduled payment of the principal of and interest on the Bonds, when due, will be guaranteed under an insurance policy to be issued concurrently with the delivery of the Bonds by MUNICIPAL BOND INVESTORS ASSURANCE CORPORATION (“MBIA”) (see “MUNICIPAL BOND INSURANCE” herein.)
(LOGO)
THIS COVER PAGE CONTAINS CERTAIN INFORMATION FOR QUICK REFERENCE ONLY. IT IS NOT A SUMMARY OF THE ISSUE. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION.
The Bonds are offered when, as and if issued and received by the Underwriters, subject to approval of legality by Edwards & Angell, LLP, West Palm Beach, Florida, Bond Counsel. Certain other legal matters on behalf of the County will be passed upon by Paul F. King, Esq., Assistant County Attorney and on behalf of the Underwriter by Carlton Fields, P.A., West Palm Beach, Florida, Counsel to the Underwriter. The Series 2001 Bonds are expected to be delivered through the facilities of DTC on or about July 3, 2001. The Series 2002 Bonds are expected to be delivered through the facilities of DTC on or about July 3, 2002.
MERRILL LYNCH & CO.
This Official Statement is dated June 1, 2001
MATURITY SCHEDULE
PALM BEACH COUNTY, FLORIDA
Airport System Revenue Refunding Bonds, Series 2001
Serial Bonds dated July 1, 2001
MaturityOctober 1 / Amount / Interest Rate / Yield
2002 / $7,635,000 / 5.000% / 3.000%
2003 / 8,010,000 / 5.000 / 3.300
2004 / 8,410,000 / 5.000 / 3.550
2005 / 8,830,000 / 5.500 / 3.740
2006 / 9,315,000 / 4.000 / 3.890
2007 / 9,690,000 / 5.500 / 4.060
2008 / 10,225,000 / 4.000 / 4.190
2009 / 10,635,000 / 5.500 / 4.320
2010 / 11,215,000 / 4.250 / 4.420
(Accrued interest to be added)
MATURITY SCHEDULE
PALM BEACH COUNTY, FLORIDA
Airport System Revenue Refunding Bonds, Series 2002
Serial Bonds dated July 1, 2002
MaturityOctober 1 / Amount / Interest Rate / Yield
2011 / $13,645,000 / 5.750 / 4.770
2012 / 14,560,000 / 5.750 / 4.910
2013 / 15,445,000 / 5.750 / 5.000
2014 / 16,500,000 / 5.750 / 5.080
(Accrued interest to be added)
PALM BEACH COUNTY, FLORIDA
301 N. Olive Avenue
West Palm Beach, FL 33401
(561) 355-2040
BOARD OF COUNTY COMMISSIONERS
WARREN H. NEWELL / ChairmanCAROL A. ROBERTS / Vice Chair
BURT AARONSON / Commissioner
KAREN T. MARCUS / Commissioner
TONY MASILOTTI / Commissioner
MARY McCARTY / Commissioner
ADDIE L. GREENE / Commissioner
OFFICIALS
County Administrator
ROBERT WEISMAN
County Attorney
DENISE DYTRYCH, ESQ.
Clerk of Circuit Court
DOROTHY H. WILKEN
Debt Manager
JOHN LONG
Bond Counsel
EDWARDS & ANGEL, LLP
West Palm Beach, Florida
Financial Advisor
Spectrum Municipal Services, Inc.
224 Datura Street, Suite 813
West Palm Beach, Florida 33401
No dealer, broker, salesman or any other person has been authorized to give any information or to make any representations, other than those contained in this Official Statement, and if given or made, such other information or representation must not be relied upon as having been authorized by the County or the Underwriter (as herein defined). This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy any of the Bonds, nor shall there be any sale of the Bonds by any persons 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, Spectrum Municipal Services, Inc. (the “Financial Advisor”), the Bond Insurer, public documents, records and other sources which are believed to be reliable, but is not guaranteed as to accuracy or completeness, by and is not to be construed as a representation of (i) the County with respect to the information herein under the caption “Municipal Bond Insurance” which was provided by the Bond Insurer or (ii) the Underwriters. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the County since the date hereof.
THE UNDERWRITER HAS PROVIDED THE FOLLOWING SENTENCE FOR INCLUSION IN THIS OFFICIAL STATEMENT. THE UNDERWRITER HAS REVIEWED THE INFORMATION IN THIS OFFICIAL STATEMENT IN ACCORDANCE WITH, AND AS PART OF, ITS RESPONSIBILITIES TO INVESTORS UNDER THE FEDERAL SECURITIES LAWS AS APPLIED TO THE FACTS AND CIRCUMSTANCES OF THIS TRANSACTION, BUT THE UNDERWRITER DOES NOT GUARANTEE THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION.
IN CONNECTION WITH THE OFFERING OF THE BONDS, THE UNDERWRITER MAY OVER ALLOT OR EFFECT TRANSACTIONS THAT MAY STABILIZE OR MAINTAIN THE MARKET PRICE OF SUCH BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.
THE BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAW, NOR HAS THE RESOLUTION BEEN QUALIFIED UNDER THE TRUST INDENTURE ACT OF 1939, AS AMENDED, IN RELIANCE UPON EXEMPTIONS CONTAINED IN SUCH ACTS. IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE.
TABLE OF CONTENTS
PAGE
INTRODUCTION 1
PURPOSE OF THE BONDS 1
PLAN OF REFUNDING 1
ESTIMATED SOURCES AND USES 2
DESCRIPTION OF THE BONDS 3
REDEMPTION PROVISIONS 4
BOOK-ENTRY ONLY SYSTEM 5
SECURITY FOR THE BONDS 6
MUNICIPAL BOND INSURANCE 10
BONDHOLDER DELAYED DELIVERY RISKS, SERIES 2002 BONDS 12
THE AIRPORT SYSTEM 12
AIRPORT FINANCIAL OPERATIONS 13