FY 2018 Bond Disclosure Supplement
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TO NAVIGATE THIS DOCUMENT USE BOOKMARKS OR TABLE OF CONTENTS Orange County, Florida Bond Disclosure Supplement Year Ended September 30, 2018 Graphic Design by Orange County Graphics Department ORANGE COUNTY, FLORIDA BOND DISCLOSURE SUPPLEMENT For The Year Ended September 30, 2018 Prepared by: Phil Diamond, CPA County Comptroller ORANGE COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS Jerry L. Demings, County Mayor Betsy VanderLey, Vice Mayor ..................................................... District 1 Christine Moore ........................................................................... District 2 Mayra Uribe .................................................................................. District 3 Maribel Gomez Cordero .............................................................. District 4 Emily Bonilla ................................................................................ District 5 Victoria P. Siplin .......................................................................... District 6 ELECTED COUNTY OFFICERS Tiffany Moore Russell ................ Clerk of the Circuit and County Courts Phil Diamond ............................................................. County Comptroller Rick Singh ................................................................. Property Appraiser John W. Mina .................................................................................. Sheriff Bill Cowles ......................................................... Supervisor of Elections Scott Randolph ................................................................... Tax Collector ORANGE COUNTY, FLORIDA BOND DISCLOSURE SUPPLEMENT for the year ended September 30, 2018 TABLE OF CONTENTS Pages Letter of Transmittal i Continuing Disclosure of County Debt 1-7 Debt Management Policy 8-12 Overview of County Debt 13-18 General Information Concerning Orange County 19-43 Governmental Activity Bonds: Sales Tax Bonds 44-66 Capital Improvement Bonds 67-76 Public Service Tax Bonds 77-84 Public Facilities Bonds 85-92 Business-Type Activity Bonds: Water Utilities Bonds 93-116 Tourist Development Tax Bonds 117-147 Component Unit Entities 148-150 Investment Policy 151-153 OFFICE OF THE COMPTROLLER ORANGE Phil Diamond, CPA COUNTY County Comptroller 201 South Rosalind Avenue FLORIDA Post Office Box 38 Orlando, Florida 32802 Telephone: 407-836-5690 March 15, 2019 Fax: 407-836-5599 Website www.occompt.com To the Citizens of Orange County, Florida: The Orange County, Florida Bond Disclosure Supplement for the fiscal year ended September 30, 2018 is hereby submitted. It should be used in conjunction with-the Comprehensive Annual Financial Report (CAFR) to provide additional detailed information concerning the County's financial operations and indebtedness. The CAFR and this Bond Disclosure Supplement serve to fulfill the annual reporting requirements of Securities and Exchange Commission (SEC) Rule 15c2-12. That rule sets standards for the provision of information to County bondholders and potential purchasers of such securities in the secondary market, dealers, security analysts, rating agencies, and other interested parties. Since the SEC Rule's 1995 effective date, the County has entered into undertakings in conjunction with each new issuance of bonded debt. Each undertaking commits the County to provide annual financial information and operating data concerning the County, consistent with certain financial information and operating data found in the respective bond official statements. This information, together with audited financial statements of the County, must be electronically filed with the Electronic Municipal Market Access (EMMA) system of the Municipal Securities Rulemaking Board by June 1 following the end of each fiscal year that bonds remain outstanding. This Bond Disclosure Supplement provides updated information relative to County bonded debt that would normally be included in the official statements, including outstanding bond issues that pre-date the SEC Rule. We bring to your attention that the insured ratings included in this Bond Disclosure Supplement take into account previous rating downgrades of certain insurers by the rating agencies and reflect the ratings on the bonds only as of the date of this correspondence. Such ratings are subject to change at any time by the rating agencies and an explanation of the significance of such ratings may only be obtained from the applicable rating agencies. Local government should strive for full disclosure in communicating its financial story. This Bond Disclosure Supplement is intended to encourage confidence and interest in Orange County from citizens and the investment community. Sincerely, !K!:Ld.C{?. •( County Comptroller CONTINUING DISCLOSURE OF COUNTY DEBT Orange County, Florida Continuing Disclosure of County Debt This Bond Disclosure Supplement for the fiscal year ended September 30, 2018 has been prepared by Orange County (County) to provide information concerning the County, its financial operations and its indebtedness. This information is made available to County bondholders and potential purchasers of such securities in the secondary market, dealers, security analysts, rating agencies, and other interested parties. The County has contracted with Digital Assurance Certification, LLC (DAC) to be a supplemental source of information for the County’s debt issues. Such services may be discontinued at any time. Information regarding County debt issuances may be found at the DAC website, www.dacbond.com. The DAC website also hosts related County documents, including official statements for outstanding debt. In addition to this annual Bond Disclosure Supplement, the County prepares a Comprehensive Annual Financial Report (CAFR), which includes audited financial statements prepared in accordance with accounting principles generally accepted in the United States of America for governmental entities. This document is available from the County upon request. Additionally, the CAFR and this Bond Disclosure Supplement are hosted on the Orange County Comptroller’s website, www.occompt.com. In compliance with Rule 15c2-12 of the Securities and Exchange Commission (SEC), the County has entered into undertakings to provide secondary market information in connection with all bonds it has issued subsequent to the July 3, 1995 effective date of the Rule. The electronic filing of this Bond Disclosure Supplement together with the CAFR, with the Electronic Municipal Market Access (EMMA) system of the Municipal Securities Rulemaking Board, satisfies, in the County's opinion, the requirements for annual disclosure as set forth in the undertakings. The County is committed to fulfilling its disclosure obligations, as now or as may hereafter be defined by the SEC. While the County is committed to the release of secondary market information necessary to evaluate the County's credit, the County is not making an on-going commitment to the publication and release of future Bond Disclosure Supplements and, in the future, its disclosure obligations may be met through supplements or enhancements to its CAFR or through the release of other documents. The County has not undertaken an independent review or investigation to determine the accuracy of information that has been obtained from other sources. Certain information presented herein has been obtained from sources that are believed by the County to be reliable, but the County makes no representation or warranty with respect to the accuracy or completeness of that information. Additionally, to the extent that certain portions of this Bond Disclosure Supplement constitute summaries of documents, reports, resolutions, or other agreements relating to the operations or outstanding debt of the County, this Supplement is qualified by reference to each such document, report, resolution, or agreement, copies of which may be obtained from the Orange County Comptroller’s Office The information in this Bond Disclosure Supplement is historic in nature and presents such information only as of the date(s) described herein. The County assumes no obligation for updating the information in this Supplement. The information in this Supplement is subject to change without notice. 1 Orange County, Florida Continuing Disclosure Policy and Procedures In response to SEC Rule 15c2-12, the County adopted Administrative Regulation Number 6.02.05 entitled “Continuing Disclosure and Post-Closing Responsibilities for Debt Issues” in June 2006. This regulation provides procedures for annual disclosure and other reportable events prescribed by the SEC Rule, as well as procedures for compliance with tax rules and the opportunity for timely remediation when needed. This Administrative Regulation, as revised in March 2012, is as follows. I. Policy A. It is the policy of Orange County to provide full and fair disclosure and comply with all post-issuance regulatory obligations in connection with the initial sale and distribution of its publicly marketed debt instruments and to provide appropriate ongoing secondary market information in compliance with the requirements of applicable federal and state securities laws, rules and regulations, including Securities and Exchange Commission (SEC) Rule 15c 2-12 (Rule). B. This policy shall be implemented through the adoption of the administrative procedures set forth below which provide for assignment of responsibility for information compilation, communication, analysis, response and dissemination. C. The Manager of Fiscal and Business Services