Sarasota County Comprehensive Annual Financial Report 2019

Sarasota County, Florida Notes to Financial Statements September 30, 2019 Debt agreements Terms specified in debt agreements entered into by the County includes provisions related to remedies available to the lender in the event of default. A summary of the default remedies expressed in the County’s debt agreements, summarized by type of borrowing include the following: Issue type Default Remedy General obligation bonds Enforcement of pledge of the general tax power of the County. Revenue bonds Lender may protect and enforce any and all rights under the Laws of the State of Florida or granted and contained in the Bond Resolution. Notes payable Note shall bear interest at the Default Rate and the Lender may seek enforcement of and exercise all remedies available to it under any applicable law. State of Florida revolving fund loan By action or suit, various remedies, including full accounting, apply to court of competent jurisdiction, appoint receiver, sue for amounts due, and accelerated repayment schedule. Commercial Paper Lender may seek enforcement of and exercise all remedies available to it under the loan agreement or any applicable law. Other that the standard default remedies listed above, there are no terms specified in the County’s debt agreements relating to significant events of default with finance-related consequences, termination events with finance-related consequences, or subjective acceleration clauses. Restrictive Debt Covenants Governmental Activities Official statements and County resolutions authorizing the general obligation and revenue bonds establish certain accounts and determine the order in which certain revenues are to be deposited into those accounts. All required balances were maintained at year-end. In connection with the commercial paper debt the County has covenanted to appropriate in its annual budget, from Non-Ad Valorem Revenues lawfully available, amounts sufficient to pay the debt service in each fiscal year. The County was in compliance with this covenant to budget and appropriate at year-end. Business-type Activities The Utility System bonds and notes and the Solid Waste System note were secured by a pledge on the net revenues of each enterprise system as defined by their official statements. The County has covenanted in the resolution authorizing the Utility System Revenue Bonds (Series 2011A, Series 2011B, Series 2013, Series 2016A, Series 2016B, and Series 2019A), the Utility System Revenue Notes (Series 2012 and Series 2015) and the Subordinate Utility System Note (Series 2012) to fix, maintain and collect such fees, rates, rentals and other charges for the use of the products, services and facilities of the System which in each bond year will (i) provide revenues, excluding all capacity fees (formerly impact fees) debt service components, in an amount not less than the aggregate amount needed to pay 100% of the debt service requirement for said bond year, 100% of the costs of operation and maintenance of the systems, plus all required deposits to the reserve account and the renewal, replacement and improvement fund and (ii) provide revenues, including all capacity fees (formerly impact fees) debt service components as shall be sufficient to pay 120% of the debt service requirement for said bond year, 100% of the cost of operation and maintenance of the system, plus all required deposits to the reserve account and the renewal, replacement and improvement fund. The Utility System Funds were in compliance with these covenants at year-end. The County has covenanted in the resolution authorizing the Solid Waste System Revenue Refunding Note, Series 2015, to fix, establish and maintain such rates and will collect such fees, rentals and other charges for the use of the services and facilities of the system and revise the same from time to time, whenever necessary, as will always provide revenues in each bond year as shall be sufficient to pay 120% of the current annual debt service requirement, 100% of the cost of operation and maintenance of the system and all required deposits to the reserve account and the renewal and replacement account required in the resolution. 119