Sarasota County Comprehensive Annual Financial Report 2020

Sarasota County, Florida Notes to Financial Statements September 30, 2020 Debt Obligations Conduit debt obligations are certain limited-obligation revenue bonds or similar debt instruments issued for the specific purpose of providing capital financing for a specific third party that is not a part of the County’s financial reporting entity. To provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest, the County has issued Industrial Development Bonds. The County is authorized by the provisions of Chapter 159, Part II, Florida Statutes to make and execute financing agreements, contracts, deeds and other instruments to finance the acquisition, construction and equipping of projects that may be able to promote effective and efficient pollution control in the County by issuing revenue bonds. On September 30, 2020, there were five series of Industrial Revenue Bonds outstanding, with an aggregate principal amount payable of $45,051,996. The Sarasota County Health Facilities Authority was created by County Ordinance No. 77-52, enacted by the Board of County Commissioners of Sarasota County on June 21, 1977, pursuant to the provisions of the Health Facilities Authorities Law, Section 154.201 et seq., Florida Statutes. Pursuant to the Act, the Authority is authorized to acquire, construct and equip projects suitable for use by not-for-profit health facilities in the provision of nursing and like care services; to issue its revenue bonds to finance and refinance the cost of such projects; and to secure such revenue bonds by a pledge of the revenues derived from the projects and by mortgages and security interests in such projects. The Authority has no taxing power and approval by the Board of County Commissions is required prior to the creation of any indebtedness by the Authority. On September 30, 2020, there were five series of Health Facilities Authority Bonds outstanding, with an aggregate principal amount payable of $181,449,773. The Industrial Revenue Bonds and the Health Facilities Authority Bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership for the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the County, the State, nor any political subdivision thereof is obligated in any manner to repay the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. Debt Issuance $18,785,000 Capital Improvement Revenue Bonds, Series 2020 In May 2020, the County issued Capital Improvement Revenue Bonds, Series 2020 in the principal amount of $18,785,000, at a premium of $3,468,275, to finance the design and construction of the Downtown Cooling Plant, Facilities Energy Conservation Measures Upgrades, and the East Jail Controls Upgrade. The 2020 Bonds are secured by a pledge of the Half-Cent Sales Tax Revenues and have an interest rate of 2.00% to 5.00%. $12,000,000 State Infrastructure Bank (SIB) Loan In May 2020, the County executed a SIB Loan with the Florida Department of Transportation, allowing for a maximum initial principal amount of $12,000,000, to finance improvements necessary to widen and reconstruct River Road. The SIB Loan is secured by a pledge of the County Road Impact Fees and South County Mobility District Fees and has an interest rate of 2.00%. The County did not receive any principal advances from the SIB Loan during the fiscal year ended September 30, 2020. $24,925,000 General Obligation Bonds, Series 2020 In July 2020, the County issued General Obligation Bonds, Series 2020 in the principal amount of $24,925,000, at a premium of $3,648,773, to finance a portion of the costs of the improvement of the Legacy Trail Extension railroad corridor within the County. The 2020 Bonds are secured by the full faith, credit and taxing power of the County and have an interest rate of 1.50% to 5.00%. 120