HomeMy WebLinkAbout2009 f
NOTICE WHICH IS PERMITTED ORREQpUIRED TO BE GIVEN TOBONDHOLDERS-(IV)THE SELECTION
BY DTC OR ANY PARTICIPANT OR INDIRECT PARTICIPANT OF ANY PERSON Ta RECEIVE PAYMENT
IN THE EVENT OF A PARTIAL REDEMPTION OF THE BONDS;OR(V)ANY CONSENT GIVEN OR OTHER
ACTION TAKEN BY DTC AS BONDOWNER.
Certificated Bonds
DTC may discontinue providing its services with respect to the Bonds at any time by giving notice to the
Town and discharging its responsibilities with respect thereto under applicable law,or the Town may terminate its
participation in the system ofbook-entry-only transfers throughDTC any time. In the event that such book-entry-
only system is discontinued, the following provisions wiat apply: The Bonds will be in registered form in
denominations of$5,000,or integral multiples thereof,except for one necessary odd denomination. Principal of and
interest on the Bonds when due will be payable at the principal corporate trust office of a bank or trust company to
be named by the Town as the fiscal agent. Certificated Bonds may be transferred or exchanged at no cost to the
owner of such Bonds at any time prior to maturity at the corporate trust office of the fiscal agent for Bonds of the
same or any other authorized denomination or denominations in the same aggregate principal amount upon the terms
set forth in the certificate of the Town Supervisor authorizing the sale ofthe Bonds and fixing the details thereof and
in accordance with the Local Finance Law.
Authorization and Purpose
The Bonds are being issued pursuant to the Constitution and statutes of the State of New York, including
among others,the Town Law General Municipal Law and the Local Finance Law,and various bond resolutions duly
adopted by the Town Board on their respective dates, authorizing the issuance of serial bonds for three capital i
projects in and for the Town.
Such projects,and the respective principal amounts of Bonds to be issued for each,are as follows:
f Date Amount to
hf Authorized Purpose be issued
02-27-07 Open Space Preservation . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5'000,000a
02-27-07 Air Vacuum Drain Cleaner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166,000' i
09-25-07 Fishers Island Sewer District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117.000'
_ Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,283,000
a Will provide original funds. On February 12,2409,the Town Board adopted the authorizing resolution as required by Town Law Section 64e.
See"Community Preservation Fund"herein.
b.Will redeem outstanding bond anticipation notes.
For further information regarding bond authorizations of the Town for capital purposes and other matters
relating thereto see"Indebtedness of the Town".
Security and Source of Payment
Each Bond when duly issued and paid for will constitute a contract between the Town and the owner thereof.
The Bonds will be general obligations of the Town and will contain a pledge of the faith and credit of the
i Town for the payment of the principal thereof and the interest thereon. For the payment of such principal and
interest, the Town has the power and statutory authority to levy ad valorem taxes on all the taxable real property
within the Town without limitation as to rate or amount. Under Article VIII of the State Constitution,the Town is
required to pledge its faith and credit for the payment of the principal of and interest on the Bonds and the State
Legislature is specifically precluded from restricting the power of the Town to levy taxes on taxable real estate
thereof.
` Remedies Upon Default
r
Under current law, provision is made for contract creditors (including the Bondholders) of the Town to
enforce payments upon such contracts,if necessary,through court action,although the present statute limits interest
on the amount adjudged due to creditors to nine per centum per annum from the date due to the date of payment. As
a general rule, property and funds of a municipal corporation serving the public welfare and interest have not been
Judicially subjected to execution or attachment to'satisfy a judgment, althoughudicial mandates to officials to
kappropriate and pay judgments out of current funds or the proceeds of a tax levy)lave been issued.
Remedies for enforcement of payment are not expressly included in the Town's contract with holders of its
bonds and notes,although any permanent repeal by statute or constitutional amendment of a Bondholder's remedial
right to judicial enforcement of the contract should, in the opinion of Bond Counsel,be held unconstitutional.
The State has consented that any municipality in the State may file a petition with any United States district
court or court of bankruptcy under any provision of the laws of the United States,now or hereafter in effect,for the
3
The Town Board of
the Town of Southold,
in the County of Suffolk, New York
March 19, 2009
Ladies and Gentlemen:
We have examined a record of proceedings relating to the authorization,
sale and issuance of $5,283,000 Public Improvement Serial Bonds-2009 (the "Bonds"), of
the Town of Southold (the "Town"), in the County of Suffolk, New York.
The Bonds are issued pursuant to the provisions of the Local Finance Law,
constituting Chapter 33-a of the Consolidated Laws of the State of New York, three bond
resolutions duly adopted by the Town Board on their respective dates, authorizing the
issuance of serial bonds of the Town for various public improvements, and the Certificate
of Determination executed by the Supervisor as of February 25, 2009, determining the
terms, form and details of issuance of the Bonds and providing for their public sale.
The Bonds are dated March 15, 2009, mature on March 15 in the principal
amounts in each of the following years, and bear interest at the respective rates per annum
payable March 15, 2010, September 15, 2010 and semiannually thereafter on March 15
and September 15 in each year until maturity, as set forth below:
Year of Principal Interest Year of Principal
Maturity Amount Rate Maturity Amount
Interest
Rate
The Bonds maturing on or before March 15, 2019 will not be sul~ject to
redemption prior to maturity. The Bonds maturing on or after March 15, 2020 will be
2010 $123,000 3.00% 2021 $250,000 4.00%
2011 220,000 3.00 2022 260,000 4.00
2012 230,000 3.00 2023 270,000 4.00
2013 180,000 3.00 2024 290,000 4.00
2014 185,000 4.00 2025 300,000 4-l/8
2015 195,000 4.00 2026 310,000 4-1/8
2016 205,000 4.00 2027 325,000 4.25
2017 215,000 4.00 2028 330,000 4.25
2018 225,000 4.00 2029 345,000 4.25
2019 230,000 4.00 2030 355,000 4-3/8
2020 240,000 4.00
subject to redemption prior to maturity, at the option of the Town, on March 15, 2019 and
thereafter, on any date, in whole or in part, at par, and subject to notice and other
conditions as stated in the Bonds.
The Bonds are issued only in fully registered form without interest coupons,
in the name of Cede & Co., as registered owner and nominee for The Depository Trust
Company, an automated depository for securities and clearinghouse for securities
transactions which will maintain a book-entry system for recording the ownership interests
in the Bonds. Only one Bond will be initially issued for each maturity in the aggregate
principal amount of such maturity. Purchases of ownership interests in the Bonds will be
made in book-entry form in denominations of $5,000 or any integral multiple thereof.
In our opinion, said Bonds are valid and legally binding general obligations
of the Town for which the Town has validly pledged its faith and credit and, unless paid
from other sources, all the taxable real property within the Town is subject to the levy of
ad valorem real estate taxes to pay the Bonds and interest thereon without limitation of rate
or amount. The enforceability of rights or remedies with respect to such Bonds may be
limited by bankruptcy, insolvency or other laws affecting creditors' rights or remedies
heretofore or hereafter enacted.
The Internal Revenue Code of 1986, as amended (the "Code"), establishes
certain requirements that must be met subsequent to the issuance and delivery of the Bonds
in order that interest on the Bonds be and remain excludable from gross income under
Section 103 of the Code. The Supervisor of the Town, in executing the Arbitrage and Use
of Proceeds Certificate, has certified to the effect that the Town will comply with the
provisions and procedures set forth therein and that it will do and perform all acts and
things necessary or desirable to assure that interest paid on the Bonds is excludable from
gross income under Section 103 of the Code. We have examined such Arbitrage and Use
of Proceeds Certificate of the Town delivered concurrently with the delivery of the Bonds,
and in our opinion, such certificate contains provisions and procedures under which such
requirements can be met.
In our opinion, under existing statutes and court decisions, (i) interest on the
Bonds is excluded from gross income for FEderal income tax purposes pursuant to Section
103 of the Code, and (ii) interest on the Bonds is not treated as a preference item in
calculating the alternative minimum tax imposed on individuals and corporations under the
Code and is not included in the adjusted current earnings of corporations for purposes of
calculating the alternative minimum tax. In rendering the opinion in this paragraph, we
have (i) relied on the representations, certifications of fact, and statements of reasonable
expectations made by the Town in the Arbitrage and Use of Proceeds Certificate and other
documents in connection with the Bonds, and (ii) assumed compliance by the Town with
certain provisions and procedures set forth in the Arbitrage and Use of Proceeds Certificate
relating to compliance with applicable requirements of the Code to assure the exclusion of
interest on the Bonds from gross income under Section 103 of the Code.
Further, in our opinion, under existing statutes, interest on the Bonds is
exempt from personal income taxes of New York State and its political subdivisions,
including The City of New York.
Except as stated abox~e, we express no opinion regarding any other federal
or state tax consequences with respect to the Bonds. We render our opinion under existing
statutes and court decisions as of the issue date, and we assume no obligation to update our
opinion after the issue date to reflect any future action, fact or circumstance, or change in
law or interpretation, or otherwise. We express no opinion on the effect of any action
hereafter taken or not taken in reliance upon an opinion of other counsel on the exclusion
from gross income for federal income tax purposes of interest on the Bonds, or on the
exemption from state and local tax law of interest on the Bonds.
Other than such record of proceedings, we have not been requested to
examine or review and have not examined or reviewed the accuracy or sufficiency of the
Official Statement, or any additional proceedings, reports, correspondence, financial
statements or other documents, containing financial or other information relative to the
Town which have been or may hereafter be furnished or disclosed to purchasers of said
Bonds, and we express no opinion with respect to any such financial or other information
or the accuracy or sufficiency thereofi
We have examined the executed first numbered Bond of said issue and, in
our opinion, the form of said Bond and its execution are regular and proper.
This opinion is issued as of the date hereof; and we assume no obligation to update, revise
or supplement this opinion to reflect any action hereafter taken or not taken, or any facts or
circumstances, or changes in law or in interpretations thereof, that may hereafter occur, or
fbr any other reason.
Very truly yours,
REGISTERED REGISTERED
NO. R-1 $123,000
UNITED STATES OF AMERICA
STATE OF NEW YORK
COUNTY OF SUFFOLK
TOWN OF SOUTHOLD
PUBLIC IMPROVEMENT SERIAL BOND-2009
INTEREST DATE OF ORIGINAL CUSIP
MATURITY DATE RATE ISSUE NUMBER
March 15, 2010 3.00% March 15, 2009 844572 LC9
REGISTERED OWNER: CEDE & CO.
PRINCIPAL SUM: ONE HUNDRED TWENTY-THREE THOUSAND
DOLLARS
The TOWN OF SOUTHOLD, in the County of Suffolk, a municipal corporation of the
State of New York, hereby acknowledges itself indebted and for value received promises
to pay to the REGISTERED OWNER named above, or registered assigns, on the
MATURITY DATE (stated above), the PRINCIPAL SUM (stated above) upon
presentation and surrender of this bond at the office of the Town Clerk, Town of Southold,
Town Hall, 53095 Main Road, Southold, New York, as fiscal agent (herein called "Fiscal
Agent"), or any successor thereto, and to pay interest on such principal sum from March
15, 2009 or from the most recent interest payment date to which interest has been paid at
the 1NTEREST RATE (stated above), payable March 15, 2010, September 15, 2010 and
semiannually thereafter on March 15 and September 15 in each year until maturity~
Interest hereon shall be payable by wire transfer or clearinghouse funds by the Town or its
agent on each interest payment date to the registered owner hereof at his address as it
appears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be furnished in writing by such registered owner to the Fiscal Agent
as of the close of business on the last day of the month preceding each interest payment
principal of and interest on this bond are payable in any coin or currency of the
date.
The
United States of America which, at the date of payment, is legal tender for the payment of
public and private debts; provided, however, that interest on this fully registered bond shall
be paid by wire transfer or clearinghouse funds as set forth above.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH HEREIN.
The faith and credit of such Town are hereby irrevocably pledged to the punctual
payment of the principal of and interest on this bond according to its terms.
This bond has been designated by the Town as a qualified tax-exempt obligation
pursuant to the provisions of Section 265 of the Internal Revenue Code of 1986, as amended.
It is hereby certified and recited that all conditions, acts and th~ngs reqmred by the
Constitution and statutes of the State of New York to exist, to have happened and to have been
performed precedent to and in the issuance of this bond, exist, have happened and have been
performed and that the issue of bonds of which this is one, together with all other indebtedness
of the Town of Southold, is within every debt and other limit prescribed by the Constitution and
laws of such State
IN WITNESS WHEREOF, the TOWN OF SOUTHOLD has caused this bond
to be executed in its name by the manual signature of its Supervisor and its corporate seal to be
impressed hereon and attested by the manual signature of its Town Clerk.
TOWN OF SOUTHOLD
ATTEST:
-~J Town Clerk
34 I 032679 CERT
Town of Southold, New York
Public Improvement Serial Bond-2009
This bond is one of an authorized combined issue, the aggregate principal
amount of which is $5,283,000, the bonds of which are of like tenor, except as to number,
denomination, interest rate and maturity, and is issued pursuant to the provisions of the
Local Finance Law, constituting Chapter 33-a of the Consolidated Laws of the State of
New York (the "Law"), three bond resolutions duly adopted by the Town Board on their
respective dates, authorizing the issuance of serial bonds of the Town for various public
improvements, and the Certificate of Determination executed by the Supervisor as of
February 25, 2009, determining the terms, form and details of issuance of said $5,283,000
serial bonds (the "Bonds") and providing for the public sale thereof (the "Certificate of
Determination").
The Bonds are issuable in the form of registered bonds without coupons in
denominations of $5,000, or any integral multiple thereof
This Bond is transferable or exchangeable, as provided in the Certificate of
Determination, only upon the books of the Town kept for that purpose at the office of the
Fiscal Agent, by the registered owner hereof in person, or by his attorney duly authorized
in writing, upon the surrender of this Bond together with a written instrument of transfer or
exchange satisfactory to the Fiscal Agent duly executed by the registered owner or his
attorney duly authorized in writing, and thereupon a new Bond or Bonds, in the same
aggregate principal amount and of the same maturity, shall be issued to the transferee or
the registered owner in exchange therefor as provided in the Certificate of Determination
and upon the payment of the charges, if any, therein prescribed.
The Bonds maturing on or before March 15, 2019 will not be subject to
redemption prior to maturity. The Bonds maturing on or after March 15, 2020 will be
subject to redemption prior to maturity, at the option of the Town, on March 15, 2019 and
thereafter on any date, in whole or in part, and if in part, in any order of their maturity and
in any amount within a maturity (selected by lot within a maturity), at par, plus accrued
interest to the date of redemption
The Bonds shall be redeemable prior to maturity upon the giving of notice
which identifies the bonds to be redeemed, by mailing such notice to the registered holders
thereof at their respective addresses as shown upon the registration books of the Fiscal
Agent at least 30 days prior to the dates set for any such redemption. If notice of
redemption shall have been given as aforesaid, the Bonds so called for redemption shall
become due and payable at the applicable redemption price on the redemption date
designated in such notice, and interest on such Bonds shall cease to accrue from and after
such redemption date
Hawkins Delafield & Wood LLP
One Chase Manhattan Plaza
New York, New York 10005
The Town Board of
the Town of Southold,
in the County of Suffolk, New York
March 19, 2009
Ladies and Gentlemen:
We have examined a record of proceedings relating to the authorization,
sale and issuance of $5,283,000 Public Improvement Serial Bonds-2009 (the "Bonds"), of
the Town of Southold (the "Town"), in the County of Suffolk, New York.
The Bonds are issued pursuant to the provisions of the Local Finance Law,
constituting Chapter 33-a of the Consolidated Laws of the State of New York, three bond
resolutions duly adopted by the Town Board on their respective dates, authorizing the
issuance of serial bonds of the Town for various public improvements, and the Certificate
of Determination executed by the Supervisor as of February 25, 2009, determining the
terms, form and details of issuance of said $5,283,000 serial bonds and providing for their
public sale.
The Bonds are dated March 15, 2009, mature on March 15 in the principal
amounts in each of the following years, and bear interest at the respective rates per annum
payable March 15, 2010, September 15, 2010 and semiannually thereafter on March 15
and September 15 in each year until maturity, as set forth below:
Year of Principal Interest Year of Principal
Maturity Amount Rate Maturity Amount Rate
2010 $123,000 3.00% 2021 $250,000
2011 220,000 3.00 2022 260,000 4.00
2012 230,000 3.00 2023 270,000 4.00
2013 180,000 300 2024 290,000 4.00
2014 185,000 4.00 2025 300,000
2015 195,000 4.00 2026 310,000
2016 205,000 400 2027 325,000 4.25
2017 215,000 4.00 2028 330,000 4.25
2018 225,000 4.00 2029 345,000 4.25
2019 230,000 4.00 2030 355,000
2020 240,000 4.00
The Bonds maturing on or before March 15, 2019 will not be subject to
redemption prior to maturity. The Bonds maturing on or after March 15, 2020 will be
subject to redemption prior to maturity, at the option of the Town, on March 15, 2019 and
thereafter, on any date, in whole or in part, at par, and subject to notice and other
conditions as stated in the Bonds.
The Bonds are issued only in fully registered form without interest coupons,
in the name of Cede & Co., as registered owner and nominee for The Depository Trust
Company, an automated depository for securities and clearinghouse for securities
transactions which will maintain a book-entry system for recording the ownership interests
in the Bonds. Only one Bond will be initially issued for each maturity in the aggregate
principal amount of such maturity. Purchases of ownership interests in the Bonds Mil be
made in book-entry form in denominations of $5,000 or any integral multiple thereof
In our opinion, said Bonds are valid and legally binding general obligations
of the Town for which the Town has validly pledged its faith and credit and, unless paid
from other sources, all the taxable real property within the Town is subject to the levy of
ad valorem real estate taxes to pay the Bonds and interest thereon without limitation of rate
or amount. Tlie enforceability of rights or remedies with respect to such Bonds may be
limited by bankruptcy, insolvency or other laws affecting creditors' rights or remedies
heretofore or hereafter enacted.
The Internal Revenue Code of 1986, as amended (the "Code"), establishes
certain requirements that must be met subsequent to the issuance and delivery of the Bonds
in order that interest on the Bonds be and remain excludable from gross income under
Section 103 of the Code. The Supervisor of the Town, in executing the Arbitrage and Use
of Proceeds Certificate, has certified to the effect that the Town will comply with the
provisions and procedures set forth therein and that it will do and perform all acts and
things necessary or desirable to assure that interest paid on the Bonds is excludable from
gross income under Section 103 of the Code. We have examined such Arbitrage and Use
of Proceeds Certificate of the Town delivered concurrently with the delivery of the Bonds,
and in our opinion, such certificate contains provisions and procedures under which such
requirements can be met
In our opinion, under existing statutes and court decisions, (i) interest on the
Bonds is excluded from gross income for federal income tax purposes pursuant to Section
103 of the Code, and (ii) interest on the Bonds is not treated as a preference item in
calculating the alternative minimum tax imposed on individuals and corporations under the
Code and is not included in the adjusted current earnings of corporations for purposes of
calculating the alternative minimum tax. In rendering the opinion in this paragraph, we
have (i) relied on the representations, certifications of fact, and statements of reasonable
expectations made by the Town in the Arbitrage and Use of Proceeds Certificate and other
documents in connection with the Bonds, and (ii) assumed compliance by the Town with
certain provisions and procedures set forth in the Arbitrage and Use of Proceeds Certificate
relating to compliance with applicable requirements of the Code to assure the exclusion of
interest on the Bonds from gross income under Section 103 of the Code
Further, in our opinion, under existing statutes, interest on the Bonds is
exempt from personal income taxes of New York State and its political subdivisions,
including The City of New York
Except as stated above, we express no opinion regarding any other federal
or state tax consequences with respect to the Bonds. We render our opinion under existing
statutes and court decisions as of the issue date, and we assume no obligation to update our
opinion after the issue date to reflect any future action, fact or circumstance, or change in
law or interpretation, or otherwise. We express no opinion on the effect of any action
hereafler taken or not taken in reliance upon an opinion of other counsel on the exclusion
from gross income for federal income tax purposes of interest on the Bonds, or on the
exemption from state and local tax law of interest on the Bonds.
Other than such record of proceedings, we have not been requested to
examine or review and have not examined or reviewed the accuracy or sufficiency of the
Official Statement, or any additional proceedings, reports, correspondence, financial
statements or other documents, containing financial or other information relative to the
Town which have been or may hereafter be furnished or disclosed to purchasers of said
Bonds, and we express no opinion with respect to any such financial or other information
or the accuracy or sufficiency thereof
We have examined the executed first numbered Bond of said issue and, in
our opinion, the form of said Bond and its execution are regular and proper.
This opinion is issued as of the date hereof, and we assume no obligation to update, revise
or supplement this opinion to reflect any action hereafter taken or. not taken, or any facts or
circumstances, or changes in law or in interpretations thereof, that may hereafter occur, or
for any other reason.
Very truly yours,
/s/Hawkins Delafield & Wood LLP
ASSIGNMENT
FOR VALUE RECEIVED, the Undersigned hereby sells,
assigns and transfers unto
PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE
PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING
POSTAL ZIF CODE OF ASSIGNEE
the within Bond and does hereby irrevocably constitute and appoint
Attorney
to transfer said Bond on the books kept for registration of said Bond, with full power of
substitution in the premises.
Dated:
Signature Guaranteed:
Notice: Signature(s) must be
acknowledged or proved, or in the
alternative, certified as to its
genuineness by an officer ora bank
or trust company located and authorized
to do business in New York State.
Notice: The signature to
this assignment must cor-
respond with'the name as
it appears upon the face
of the within bond in
every particular, without
alteration or enlargement or
any change whatever
REGISTERED
NO. R-2
UNITED STATES OF AMERICA
STATE OF NEW YORK
COUNTY OF SUFFOLK
TOWN OF SOUTItOLD
PUBLIC IMPROVEMENT SERIAL BOND-2009
REGISTERED
$220,000
MATURITY DATE
March 15, 2011
INTEREST
RATE
DATE OF ORIGINAL CUSIP
ISSUE NUMBER
3.00% March 15, 2009 844572 LD7
REGISTERED OWNER: CEDE & CO.
PRINCIPAL SUM: TWO HUNDRED TWENTY THOUSAND DOLLARS
The TOWN OF SOUTHOLD, in the County o£ Suffolk, a municipal corporation of the
State of New York, hereby acknowledges itself indebted and for value received promises
to pay to the REGISTERED OWNER named above, or registered assigns, on the
MATURITY DATE (stated above), the PRINCIPAL SUM (stated above) upon
presentation and surrender of this bond at the office of the Town Clerk, Town o£ S outhold,
Town Hall, 53095 Main Road, Southold, New York, as fiscal agent (herein called "Fiscal
Agent"), or any successor thereto, and to pay interest on such principal sum from March
15, 2009 or from the most recent interest payment date to which interest has been paid at
the INTEREST KATE (stated above), payable March 15, 2010, September 15, 2010 and
semiannually thereafter on March 15 and September 15 in each year until maturity
Interest hereon shall be payable by wire transfer or clearinghouse ~unds by the Town or its
agent on each interest payment date to the registered owner hereof at his address as it
appears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be furnished in writing by such registered owner to the Fiscal Agent
as o£the close of business on the last day of the month preceding each interest payment
date. The principal of and interest on this bond are payable in any coin or currency o£the
United States of America which, at the date of payment, is legal tender £or the payment of
public and private debts; provided, however, that interest on this ~ully registered bond shall
be paid by wire transfer or clearinghouse fi~nds as set forth above.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH HEREIN.
REGISTERED
NO. R-3
UNITED STATES OF AMERICA
STATE OF NEW YORK
COUNTY OF SUFFOLK
TOWN OF SOUTHOLD
PUBLIC IMPROVEMENT SERIAL BOND-2009
REGISTERED
$230,000
MATURITY DATE
March 15, 2012
INTEREST
RATE
DATE OF ORIGINAL CUSIP
ISSUE NUMBER
3.00% March 15, 2009 844572 LE5
REGISTERED OWNER: CEDE & CO.
PRINCIPAL SUM: TWO HUNDRED THIRTY THOUSAND DOLLARS
The TOWN OF SOUTHOLD, in the County of Suffolk, a municipal corporation of the
State of New York, hereby acknowledges itself indebted and for value received promises
to pay to the REGISTERED OWNER named above, or registered assigns, on the
MATURITY DATE (stated above), the PRINCIPAL SUM (stated above) upon
presentation and surrender of this bond at the office of the Town Clerk, Town of Southold,
Town Hall, 53095 Main Road, Southold, New York, as fiscal agent (herein called "Fiscal
Agent"), or any successor thereto, and fo'pay interest on such principal sum from March
15, 2009 or from the most recent interest payment date to which interest has been paid at
the INTEREST RATE (stated above), payable March 15, 2010, September 15, 2010 and
semiannually thereafter on March 15 and September 15 in each year until maturity.
Interest hereon shall be payable by wire transfer or clearinghouse funds by the Town or its
agent on each interest payment date to the registered owner hereof at his address as it
appears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be furnished in writing by such registered owner to the Fiscal Agent
as of the close of business on the last day of the month preceding each interest payment
date. The principal of and interest on this bond are payable in any coin or currency of the
United States of America which, at the date of payment, is legal tender for the payment of
public and private debts; provided, however, that interest on this fully registered bond shall
be paid by wire transfer or clearinghouse funds as set forth above.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH HEREIN
REGISTERED
NO. R-4
UNITED STATES OF AMERICA
STATE OF NEW YORK
COUNTY OF SUFFOLK
TOWN OF SOUTHOLD
PUBLIC IMPROVEMENT SERIAL BOND-2009
REGISTERED
$180,000
MATURITY DATE
March 15, 2013
INTEREST
RATE
DATE OF ORIGINAL CUSIP
ISSUE NUMBER
3.00% March 15, 2009 844572LF2
REGISTERED OWNER: CEDE & CO.
PRINCIPAL SUM: ONE HUNDRED EIGHTY THOUSAND DOLLARS
The TOWN OF SOUTHOLD, in the County of Suffolk, a municipal corporation of the
State of New York, hereby acknowledges itself indebted and for value received promises
to pay to the REGISTERED OWNER named above, or registered assigns, on the
MATURITY DATE (stated above), the PRINCIPAL SUM (stated above) upon
presentation and surrender of this bond at the office of the Town Clerk, Town of Southold,
Town Hall, 53095 Main Road, Southold, New York, as fiscal agent (herein called "Fiscal
Agent"), or any successor ther'eio, and to pay interest on such principal sum from March
15, 2009 or from the most recent interest payment date to which interest has been paid at
the INTEREST RATE (stated above), payable March 15, 2010, September 15, 2010 and
semiannually thereafter on March 15 and September 15 in each year until maturity.
Interest hereon shall be payable by wire transfer or clearinghouse funds by the Town or its
agent on each interest payment date to the registered owner hereof at his address as it
appears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be furnished in writing by such registered owner to the Fiscal Agent
as of the close of business on the last day of the month preceding each interest payment
date. The principal of and interest on this bond are payable in any coin or currency of the
United States of America which, at the date of payment, is legal tender for the payment of
public and private debts; provided, however, that interest on this fully registered bond shall
be paid by wire transfer or clearinghouse funds as set forth above.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH HEREIN.
REGISTERED
NO. R-5
UNITED STATES OF AMERICA
STATE OF NEW YORK
COUNTY OF SUFFOLK
TOWN OF SOUTIIOLD
PUBLIC IMPROVEMENT SERIAL BOND-2009
REGISTERED
$185,000
MATURITY DATE
March 15, 2014
INTEREST
RATE
DATE OF ORIGINAL CUSIP
ISSUE NUMBER
4.00% March 15, 2009 844572LG0
REGISTERED OWNER:
PRINCIPAL SUM:
CEDE & CO.
ONE HUNDRED EIGHTY-FIVE THOUSAND
DOLLARS
The TOWN OF SOUTHOLD, in the County of Suffolk, a municipal corporation of the
State of New York, hereby acknowledges itself indebted and for value received promises
to pay to the REGISTERED OWNER named above, or registered assigns, on the
MATURITY DATE (stated above), the PRINCIPAL SUM (stated above) upon
presentation and surre.n, der of this bond at the office of tBe Town Clerk, Town of Southold,
Town Hall, 53095 Main Road, Southold, New York, as fiscal agent (herein called "Fiscal
Agent"), or any successor thereto, and to pay interest on such principal sum from March
15, 2009 or from the most recent interest payment date to which interest has been paid at
the 1NTEREST RATE (stated above), payable March 15, 2010, September 15, 2010 and
semiannually thereafter on March 15 and September 15 in each year until maturity.
Interest hereon shall be payable by wire transfer or clearinghouse funds by the Town or its
agent on each interest payment date to the registered owner hereof at his address as it
appears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be furnished in writing by such registered owner to the Fiscal Agent
as of the close of business on the last day of the month preceding each interest payment
date. The principal of and interest on this bond are payable in any coin or currency of the
United States of America which, at the date of payment, is legal tender for the payment of
public and private debts; provided, however, that interest on this fully registered bond shall
be paid by wire transfer or clearinghouse funds as set forth above.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH HEREIN
REGISTERED
NO. R-6
UNITED STATES OF AMERICA
STATE OF NEW YORK
COUNTY OF SUFFOLK
TOWN OF SOUTHOLD
PUBLIC IMPROVEMENT SERIAL BOND-2009
REGISTERED
$195,000
MATURITY DATE
March 15, 2015
INTEREST
RATE
DATE OF ORIGINAL CUSIP
ISSUE NUMBER
4.00% March 15, 2009 844572 LH8
REGISTERED OWNER:
PRINCIPAL SUM:
CEDE & CO.
ONE HUNDRED NINETY-FIVE THOUSAND
DOLLARS
The TOWN OF SOUTFIOLD, in the County of Suffolk, a municipal corporation of the
State of New York, hereby acknowledges itself indebted and for value received promises
to pay to the REGISTERED OWNER named above, or registered assigns, on the
MATURITY DATE (stated above), the PRINCIPAL SUM (stated above) upon
presentation a.ngl surrender of this bond at the office of the Town Clerk, Town of Southold,
Town Hall, 53095 Main Road, Southold, New York, as fiscal agent (herein called "Fiscal
Agent"), or any successor thereto, and to pay interest on such principal sum from March
15, 2009 or from the most recent interest payment date to which interest has been paid at
the INTEREST RATE (stated above), payable March 15, 2010, September 15, 2010 and
semiannually thereafter on March 15 and September 15 in each year until maturity.
Interest hereon shall be payable by wire transfer or clearinghouse funds by the Town or its
agent on each interest payment date to the registered owner hereof at his address as it
appears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be furnished in writing by such registered owner to the Fiscal Agent
as of the close of business on the last day of the month preceding each interest payment
date. The principal of and interest on this bond are payable in any coin or currency of the
United States of America which, at the date of payment, is legal tender for the payment of
public and private debts; provided, however, that interest on this fully registered bond shall
be paid by wire transfer or clearinghouse funds as set forth above.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH HEREIN
REGISTERED
NO. R-7
UNITED STATES OF AMERICA
STATE OF NEW YORK
COUNTY OF SUFFOLK
TOWN OF SOUTHOLD
PUBLIC IMPROVEMENT SERIAL BOND-2009
REGISTERED
$205,000
MATURITY DATE
March 15, 2016
INTEREST
RATE
DATE OF ORIGINAL CUSIP
ISSUE NUMBER
4.00% March 15, 2009 844572 L J4
REGISTERED OWNER: CEDE & CO.
PRINCIPAL SUM: TWO HUNDRED FIVE THOUSAND DOLLARS
The TOWN OF SOUTHOLD, in the County of Suffolk, a municipal corporation of the
State of New York, hereby acknowledges itself indebted and for value received promises
to pay to the REGISTERED OWNER named above, or registered assigns, on the
MATURITY DATE (stated above), the PRINCIPAL SUM (stated above) upon
presentation and surrender of this bond at the office of the Town Clerk, Town of Southold,
Town Hall, 53095 Main Road, Southold, New York, as fiscal agent (herein called "Fiscal
Agent"), or any successor thereto, and to pay interest on such principal sum from March
15, 2009 or from the most recent interest payment date to which interest has been paid at
the iNTEREST RATE (stated above), payable March 15, 2010, September 15, 2010 and
semiannually thereafter on March 15 and September 15 in each year until maturity.
Interest hereon shall be payable by wire transfer or clearinghouse funds by the Town or its
agent on each interest payment date to the registered owner hereof at his address as it
appears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be furnished in writing by such registered owner to the Fiscal Agent
as of the close of business on the last day of the month preceding each interest payment
date. The principal of and interest on this bond are payable in any coin or currency of the
United States of America which, at the date of payment, is legal tender for the payment of
public and private debts; provided, however, that interest on this fully registered bond shall
be paid by wire transfer or clearinghouse funds as set forth above.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH HEREIN.
REGISTERED
NO. R-8
UNITED STATES OF AMERICA
STATE OF NEW YORK
COUNTY OF SUFFOLK
TOWN OF SOUTHOLD
PUBLIC IMPROVEMENT SERIAL BOND-2009
REGISTERED
$215,000
MATURITY DATE
March 15, 2017
INTEREST
RATE
DATE OF ORIGINAL CUSIP
ISSUE NUMBER
4.00% March 15, 2009 844572 LK1
REGISTERED OWNER: CEDE & CO.
PRINCIPAL SUM: TWO HUNDRED FIFTEEN THOUSAND DOLLARS
The TOWN OF SOUTHOLD, in the County of Suffolk, a municipal corporation of the
State of New York, hereby acknowledges itself indebted and for value received promises
to pay to the REGISTERED OWNER named above, or registered assigns, on the
MATURITY DATE (stated above), the PRINCIPAL SUM (stated above) upon
presentation and surrender of this bond at the office of the Town Clerk, Town of Southold,
_ Town Hall, 53095 Main Road, Southold, New York, as fiscal agent (herein called "Fiscal
Agent"), or any successor thereto, and to pay interest on such principal sum from March
15, 2009 or from the most recent interest payment date to which interest has been paid at
the INTEREST RATE (stated above), payable March 15, 2010, September 15, 2010 and
semiannually thereafter on March 15 and September 15 in each year until maturity.
Interest hereon shall be payable by wire transfer or clearinghouse funds by the Town or its
agent on each interest payment date to the registered owner hereof at his address as it
appears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be furnished in writing by such registered owner to the Fiscal Agent
as of the close of business on the last day of the month preceding each interest payment
date. The principal of and interest on this bond are payable in any coin or currency of the
United States of America which, at the date of payment, is legal tender for the payment of
public and private debts; provided, however, that interest on this fully registered bond shall
be paid by wire transfer or clearinghouse funds as set forth above
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH HEREIN
REGISTERED
NO. R-9
UNITED STATES OF AMERICA
STATE OF NEW YORK
COUNTY OF SUFFOLK
TOWN OF SOUTHOLD
PUBLIC IMPROVEMENT SERIAL BOND~2009
REGISTERED
$225,000
MATURITY DATE
March 15, 2018
INTEREST
RATE
DATE OF ORIGINAL CUSIP
ISSUE NUMBER
4.00% March 15, 2009 844572 LL9
REGISTERED OWNER:
PRINCIPAL SUM:
CEDE & CO.
TWO HUNDRED TWENTY-FIVE THOUSAND
DOLLARS
The TOWN OF SOUTHOLD, in the County of Suffolk, a municipal corporation of the
State of New York, hereby acknowledges itself indebted and for value received promises
to pay to the REGISTERED OWNER named.above, or registered assigns, on the
MATURITY DATE (stated above), the PRINCIPAL SUM (stated above) upon
presentation and surrender of this bond at the office of the Town Clerk, Town of Southold,
Town Hall, 53095 Main Road, Southotd, New York, as fiscal agent (herein called "Fiscal
Agent"), or any successor thereto, and to pay interest on such principal sum from March
15, 2009 or from the most recent interest payment date to which interest has been paid at
the INTEREST RATE (stated above), payable March 15, 2010, September 15, 2010 and
semiannually thereafter on March 15 and September 15 in each year until maturity.
Interest hereon shall be payable by wire transfer or clearinghouse funds by the Town or its
agent on each interest payment date to the registered owner hereof at his address as it
appears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be furnished in writing by such registered owner to the Fiscal Agent
as of the close of business on the last day of the month preceding each interest payment
date. The principal of and interest on this bond are payable in any coin or currency of the
United States of America which, at the date of payment, is legal tender for the payment of
public and private debts; provided, however, that interest on this fully registered bond shall
be paid by wire transfer or clearinghouse funds as set forth above.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH HEREIN.
REGISTERED
NO. R-10
UNITED STATES OF AMERICA
STATE OF NEW YORK
COUNTY OF SUFFOLK
TOWN OF SOUTHOLD
PUBLIC IMPROVEMENT SERIAL BOND-2009
REGISTERED
$230,000
MATURITY DATE
March 15, 2019
INTEREST
RATE
DATE OF ORIGINAL CUSIP
ISSUE NUMBER
4.00% March 15, 2009 844572 LM7
REGISTERED OWNER: CEDE & CO.
PRINCIPAL SUM: TWO HUNDRED THIRTY THOUSAND DOLLARS
The TOWN OF SOUTHOLD, in the County of Suffolk, a municipal corporation of the
State of New York, hereby acknowledges itself indebted and for value received promises
to pay to the REGISTERED OWNER named above, or registered assigns, on the
MATURITY DATE (stated above), the PRINCIPAL SUM (stated above) upon
presentation and surrender o£this bond at the offic~ of the Town Clerk, Town of Southold,
Town Hall, 53095 Main Road, Southold, New York, as fiscal agent (herein called "Fiscal
Agent"), or any successor thereto, and to pay interest on such principal sum from March
15, 2009 or from the most recent interest payment date to which interest has been paid at
the INTEREST RATE (stated above), payable March 15, 2010, September 15, 2010 and
semiannually thereafter on March 15 and September 15 in each year until maturity.
Interest hereon shall be payable by wire transfer or clearinghouse funds by the Town or its
agent on each interest payment date to the registered owner hereof at his address as it
appears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be furnished in writing by such registered owner to the Fiscal Agent
as of the close of business on the last day of the month preceding each interest payment
date. The principal of and interest on this bond are payable in any coin or currency of the
United States of America which, at the date of payment, is legal tender for the payment of
public and private debts; provided, however, that interest on this fully registered bond shall
be paid by wire transfer or clearinghouse funds as set forth above.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET.
FORTH HEREIN.
REGISTERED
NO. R-Il
UNITED STATES OF AMERICA
STATE OF NEW YORK
COUNTY OF SUFFOLK
TOWN OF SOUTHOLD
PUBLIC IMPROVEMENT SERIAL BOND-2009
REGISTERED
$240,000
MATURITY DATE
March 15, 2020
INTEREST
RATE
DATE OF ORIGINAL CUSIP
ISSUE NUMBER
4.00% March 15, 2009 844572 LN5
REGISTERED OWNER: CEDE & CO.
PRINCIPAL SUM: TWO HUNDRED FORTY THOUSAND DOLLARS
The TOWN OF SOUTHOLD, in the County of Suffolk, a municipal corporation of the
State of New York, hereby acknowledges itself indebted and for value received promises
to pay to the REGISTERED OWNER named above, or registered assigns, on the
MATURITY DATE (stated above), the PRINCIPAL SUM (stated above) upon
presentation and surrender of this bond afthe office of the Town Clerk, Town of Southold,
Town Hall, 53095 Main Road, Southold, New York, as fiscal agent (herein called "Fiscal
Agent"), or any successor thereto, and to pay interest on such principal sum from March
15, 2009 or from the most recent interest payment date to which interest has been paid at
the INTEREST RATE (stated above), payable March 15, 2010, September 15, 2010 and
semiannually thereafter on March 15 and September 15 in each year until maturity.
Interest hereon shall be payable by wire transfer or clearinghouse funds by the Town or its
agent on each interest payment date to the registered owner hereof at his address as it
appears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be furnished in writing by such registered owner to the Fiscal Agent
as of the close of business on the last day of the month preceding each interest payment
date. The principal of and interest on this bond are payable in any coin or currency of the
United States of America which, at the date of payment, is legal tender for the payment of
public and private debts; provided, however, that interest on this fully registered bond shall
be paid by wire transfer or clearinghouse funds as set forth above.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH HEREIN.
REGISTERED
NO. R-12
UNITED STATES OF AMERICA
STATE OF NEW YORK
COUNTY OF SUFFOLK
TOWN OF SOUTHOLD
PUBLIC IMPROVEMENT SERIAL BOND-2009
REGISTERED
$250,000
MATURITY DATE
March 15, 2021
INTEREST
RATE
DATE OF ORIGINAL CUSIP
ISSUE NUMBER
4.00% March 15, 2009 844572 LP0
REGISTERED OWNER: CEDE & CO.
PRINCIPAL SUM: TWO HUNDRED FIFTY THOUSAND DOLLARS
The TOWN OF SOUTHOLD, in the County of Suffolk, a municipal corporation of the
State of New York, hereby acknowledges itself indebted and for value received promises
to pay to the REGISTERED OWNER named above, or registered assigns, on the
MATURITY DATE (stated abovg), the PRINCIPAL SUM (stated above) upon
presentation and surrender of this bond at the office of the Town Clerk, Town of Southold,
Town Hall, 53095 Main Road, Southold, New York, as fiscal agent (herein called "Fiscal
Agent"), or any successor thereto, and to pay interest on such principal sum from March
15, 2009 or from the most recent interest payment date to which interest has been paid at
the iNTEREST RATE (stated above), payable March 15, 2010, September 15, 2010 and
semiannually thereafter on March 15 and September 15 in each year until maturity.
Interest hereon shall be payable by wire transfer or clearinghouse funds by the Town or its
agent on each interest payment date to the registered owner hereof at his address as it
appears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be furnished in writing by such registered owner to the Fiscal Agent
as of the close of business on the last day of the month preceding each interest payment
date. The principal of and interest on this bond are payable in any coin or currency of the
United States of America which, at the date of payment, is legal tender for the payment of
public and private debts; provided, however, that interest on this fully registered bond shall
be paid by wire transfer or clearinghouse funds as set forth above.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH HEREIN.
REGISTERED
NO. R-13
UNITED STATES OF AMERICA
STATE OF NEW YORK
COUNTY OF SUFFOLK
TOWN OF SOUTHOLD
PUBLIC IMPROVEMENT SERIAL BOND-2009
REGISTERED
$260,000
MATURITY DATE
March 15, 2022
INTEREST
RATE
DATE OF ORIGINAL CUSIP
ISSUE NUMBER
4.00% March 15, 2009 844572 LQ8
REGISTERED OWNER: CEDE & CO.
PRINCIPAL SUM: TWO HUNDRED SIXTY THOUSAND DOLLARS
The TOWN OF SOUTHOLD, in the County of Suffolk, a municipal corporation of the
State of New York, hereby acknowledges itself indebted and for value received promises
to pay to the REGISTERED OWNER named above, or registered assigns, on the
MATURITY DATE (stated above), the PRINCIPAL SUM (stated above) upon
presentation and surrender of this bond at the office of the Town Clerk, Town of S outhold,
Town Hall, 53095 Main Road, Southold, New York, as fiscal agent (herein called "Fiscal
Agent"), or any successor thereto, and to pay interest on such principal sum from Mar6h
15, 2009 or from the most recent interest payment date to which interest has been paid at
the INTEREST RATE (stated above), payable March t5, 2010, September 15, 2010 and
semiannually thereafter on March 15 and September 15 in each year until maturity.
Interest hereon shall be payable by wire transfer or clearinghouse funds by the Town or its
agent on each interest payment date to the registered owner hereof at his address as it
appears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be furnished in writing by such registered owner to the Fiscal Agent
as of the close of business on the last day of the month preceding each interest payment
date. The principal of and interest on this bond are payable in any coin or currency of the
United States of America which, at the date of payment, is legal tender for the payment of
public and private debts; provided, however, that interest on this fully registered bond shall
be paid by wire transfer or clearinghouse funds as set forth above.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF TI-IlS BOND SET
FORTH HEREIN.
REGISTERED
NO. R-14
UNITED STATES OF AMERICA
STATE OF NEW YORK
COUNTY OF SUFFOLK
TOWN OF SOUTHOLD
PUBLIC IMPROVEMENT SERIAL BOND-2009
REGISTERED
$27O,000
MATURITY DATE
March 15, 2023
INTEREST
RATE
DATE OF ORIGINAL CUSIP
ISSUE NUMBER
4.00% March 15, 2009 844572 LR6
REGISTERED OWNER: CEDE & CO.
PRINCIPAL SUM: TWO HUNDRED SEVENTY THOUSAND DOLLARS
The TOWN OF SOUTHOLD, in the County of Suffolk, a municipal corporation of the
State of New York, hereby acknowledges itself indebted and for value received promises
to pay to the REGISTERED OWNER named above, or registered assigns, on the
MATURITY DATE (stated above), the PRINCIPAL SUM (stated above) upon
presentation and surrender of this bond at the office of the Town Clerk, Town of Southold,
Town Hall, 53095 Main Road, Southold, New York, as fiscal agent (herein called "Fiscal
Agent"), or any successor thereto, and to pay interest on such principal sum froin March
15, 2009 or from the most recent interest payment date to which interest has been paid at
the INTEREST RATE (stated above), payable March 15, 2010, September 15, 2010 and
semiannually thereafter on March 15 and September 15 in each year until maturity.
Interest hereon shall be payable by wire transfer or clearinghouse funds by the Town or its
agent on each interest payment date to the registered owner hereof at his address as it
appears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be furnished in ~vriting by such registered owner to the Fiscal Agent
as of the close of business on the last day of the month preceding each interest payment
date. The principal of and interest on this bond are payable in any coin or currency of the
United States of America which, at the date of payment, is legal tender for the payment of
public and private debts; provided, however, that interest on this fully registered bond shall
be paid by wire transfer or clearinghouse funds as set forth above.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH HEREIN
REGISTERED
NO. R-15
UNITED STATES OF AMERICA
STATE OF NEW YORK
COUNTY OF SUFFOLK
TOWN OF SOUTHOLD
PUBLIC IMPROVEMENT SERIAL BOND-2009
REGISTERED
$290,000
MATURITY DATE
March 15, 2024
INTEREST
RATE
DATE OF ORIGINAL CUSIP
ISSUE NUMBER
4.00% March 15, 2009 844572 LS4
REGISTERED OWNER: CEDE & CO.
PRINCIPAL SUM: TWO HUNDRED NINETY THOUSAND DOLLARS
The TOWN OF SOUTHOLD, in the County of Suffolk, a municipal corporation of the
State of New York, hereby acknowledges itself indebted and for value received promises
to pay to the REGISTERED OWNER named above, or registered assigns, on the
MATURITY DATE (stated above), the PRINCIPAL SUM (stated above) upon
presentation and surrender of this bond at the office of the Town Clerk, Town of Southold,
Town Hall, 53095 Main Road, Southold, New York, as fiscal agent (herein called "Fiscal
Agent"), or any successor thereto, and to pay interest on such principal 'sum from March-
15, 2009 or from the most recent interest payment date to which interest has been paid at
the INTEREST RATE (stated above), payable March 15, 2010, September 15, 2010 and
semiannually thereafter on March 15 and September 15 in each year until maturity.
Interest hereon shall be payable by wire transfer or clearinghouse funds by the Town or its
agent on each interest payment date to the registered owner hereof at his address as it
appears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be furnished in writing by such registered owner to the Fiscal Agent
as of the close of business on the last day of the month preceding each interest payment
date. The principal of and interest on this bond are payable in any coin or currency of the
United States of America which, at the date of payment, is legal tender for the payment of
public and private debts; provided, however, that interest on this fully registered bond shall
be paid by wire transfer or clearinghouse funds as set forth above.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH HEREIN.
REGISTERED
NO. R-16
UNITED STATES OF AMERICA
STATE OF NEW YORK
COUNTY OF SUFFOLK
TOWN OF SOUTHOLD
PUBLIC IMPROVEMENT SERIAL BOND-2009
REGISTERED
$300,000
MATURITY DATE
March 15, 2025
INTEREST
RATE
4-1/8%
DATE OF ORIGINAL CUSIP
ISSUE NUMBER
March 15, 2009
844572 LT2
REGISTERED OWNER: CEDE & CO.
PRINCIPAL SUM: THREE HUNDRED THOUSAND DOLLARS
The TOWN OF SOUTHOLD, in the County of Sufiblk, a municipal corporation of the
State of New York, hereby acknowledges itself indebted and for value received promises
to pay to the REGISTERED OWNER named above, or registered assigns, on the
MATURITY DATE (stated above), the PRINCIPAL SUM (stated above) upon
' presentation and surrender of this bond at the office of the Town Clerk, Town of Southold,
Town Hall, 53095 Main Road, Southold, New York, as fiscal agent (herein called "Fiscal
Agent"), or any successor thereto, and to pay interest on such principal sum from March
15, 2009 or from the most recent interest payment date to which interest has been paid at
the iNTEREST RATE (stated above), payable March 15, 2010, September 15, 2010 and
semiannually thereafter on March 15 and September 15 in each year until maturity.
Interest hereon shall be payable by wire transfer or clearinghouse funds by the Town or its
agent on each interest payment date to the registered owner hereof at his address as it
appears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be furnished in writing by such registered owner to the Fiscal Agent
as of the close of business on the last day of the month preceding each interest payment
date. The principal of and interest on this bond are payable in any coin or currency of the
United States of America which, at the date of payment, is legal tender for the payment of
public and private debts; provided, however, that interest on this fully registered bond shall
be paid by wire transfer or clearinghouse funds as set forth above.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH HEREiN.
REGISTERED REGISTERED
NO. R-17 $310,000
COUNTY OF SUFFOLK
TOWN OF SOUTHOLD
PUaLiC eaOVEMENT SX L aON -Z009
~TE~ST DATE OF OmG~An CUS~
MATU~TY DATE ~TE ISSUE
r~h 15. 2026 4 ~/8% March 15, 2009 844572 LU9
~GISTERED OWNER: CEDE & CO.
P~C~AL SUM: THeE HUND~D TEN THOUSAND DOLLARS
The TOWN OF SOUTHOLD, in the County of Suffolk, a municipal corporation or,he
State of New York hereby acknowledges itself indebted and for value received promises
to pay to the ~GISTE~D O~R named above, or registered assigns, on the
MAT~TY DATE (stated above), the P~CIP~ S~ (stated above) upon
presentation and surrender of this bond at the office of the Town Clerk, Town of Southold,
Town Hall, 53095 Main Road, Southold, New York, as fiscal agent (herein called "Fiscal
Agent"), or any successor thereto, and to pay interest'on such principal-sum kom M~rch
15, 2009 or from the most recent interest payment date to which interest has been prod at
the ~TE~ST ~TE (stated above), payable March 15, 2010, September 15, 2010 and
semiannually therea~er on March 15 and September 15 in each year until maturity
Interest hereon shall be payable by wire transfer or clearinghouse hnds by the Town or its
agent on each interest payment date to the registered owner hereof at his address as it
appears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be ~rnished in writing by such registered owner to the Fiscal Agent
as of the close of business on the last day of the month preceding each interest payment
date. The principal of and interest on this bond are payable in any coin or currency of the
United States of America which, at the date of payment, is legal tender for the payment of
public and private debts; provided, however, that interest on this ~lly registered bond shall
be paid by wire transfer or clearinghouse hnds as set foah above
~FE~NCE IS M~E TO T~ F~T~R PROVISIONS OF TinS BO~ SET
FORTH ~.
REGISTERED
NO. R-18
UNITED STATES OF AMERICA
STATE OF NEW YORK
COUNTY OF SUFFOLK
TOWN OF SOUTHOLD
PUBLIC IMPROVEMENT SERIAL BOND-2009
REGISTERED
$325,000
MATURITY DATE
March 15, 2027
INTEREST
RATE
DATE OF ORIGINAL CUSIP
ISSUE NUMBER
4.25% March 15, 2009 844572 LV7
REGISTERED OWNER:
PRINCIPAL SUM:
CEDE & CO.
THREE HUNDRED TWENTY-FIVE THOUSAND
DOLLARS
The TOWN OF SOUTHOLD, in the County of Suffolk, a municipal corporation of the
State of New York, hereby acknowledges itself indebted and for value received promises
to pay to the REGISTERED OWNER named above, or registered assigns, on the
MATURITY DATE (stated above), the PRINCIPAL SUM (stated above) upon
presentation and surrender of this bond at the office of the Town Clerk, Town of Southold,
Town Hall, 53095 Main Road, Southold, Ne~v York, as fiscal ~tgent (herein called "Fiscal
Agent"), or any successor thereto, and to pay interest on such principal sum from March
15, 2009 or from the most recent interest payment date to which interest has been paid at
the iNTEREST RATE (stated above), payable March 15, 2010, September 15, 2010 and
semiannually thereafter on March 15 and September 15 in each year until maturity.
Interest hereon shall be payable by wire transfer or clearinghouse funds by the Town or its
agent on each interest payment date to the registered owner hereof at his address as it
appears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be furnished in writing by such registered owner to the Fiscal Agent
as of the close of business on the last day of the month preceding each interest payment
date. The principal of and interest on this bond are payable in any coin or currency of the
United States of America which, at the date of payment, is legal tender for the payment of
public and private debts; provided, however, that interest on this fully registered bond shall
be paid by wire transfer or clearinghouse funds as set forth above.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH HEREiN.
REGISTERED
NO. R-19
UNITED STATES OF AMERICA
STATE OF NEW YORK
COUNTY OF SUFFOLK
TOWN OF SOUTHOLD
PUBLIC IMPROVEMENT SERIAL BOND-2009
REGISTERED
$330,000
MATURITY DATE
March 15, 2028
INTEREST
RATE
DATE OF ORIGINAL CUSIP
ISSUE NUMBER
4.25% March 15, 2009 844572 LW5
REGISTERED OWNER: CEDE & CO.
PRINCIPAL SUM: THREE HUNDRED THIRTY THOUSAND DOLLARS
The TOWN OF SOUTHOLD, in the County of Suffolk, a municipal corporation of the
State of New York, hereby acknowledges itself indebted and for value received promises
to pay to the REGISTERED OWNER named above, or registered assigns, on the
MATURITY DATE (stated above), the PRINCIPAL SUM (stated above) upon
presentation and surrender of this bond at the office of the Town Clerk, Town of Southold,
Town Hall, 53095 Main Road, Southold, New York, as fiscal agent (herein called "Fiscal
Agent"), or any successor thereto, and to pay interest on such principal sum from March
15, 2009 or from the most recent interest payment date to which interest has been paid at
the INTEREST RATE (stated above), payable March 15, 2010, September 15, 2010 and
semiannually thereafter on March ! 5 and September 15 in each year until maturity.
Interest hereon shall be payable by wire transfer or clearinghouse funds by the Town or its
agent on each interest payment date to the registered owner hereof at his address as it
appears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be furnished in writing by such registered owner to the Fiscal Agent
as of the close of business on the last day of the month preceding each interest payment
date. The principal of and interest on this bond are payable in any coin or currency of the
United States of America which, at the date of payment, is legal tender for the payment of
public and private debts; provided, however, that interest on this fully registered bond shall
be paid by wire transfer or clearinghouse funds as set forth above.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH HEREIN
REGISTERED
NO. R-20
UNITED STATES OF AMERICA
STATE OF NEW YORK
COUNTY OF SUFFOLK
TOWN OF SOUTHOLD
PUBLIC IMPROVEMENT SERIAL BOND-2009
REGISTERED
$345,000
MATURITY DATE
March 15, 2029
INTEREST
RATE
DATE OF ORIGINAL CUSIP
ISSUE NUMBER
4.25% March 15, 2009 844572 LX3
REGISTERED OWNER:
PRINCIPAL SUM:
CEDE & CO.
THREE HUNDRED FORTY-FIVE THOUSAND
DOLLARS
The TOWN OF SOUTHOLD, in the County of Suffolk, a municipal corporation of the
State of New York, hereby acknowledges itself indebted and for value received promises
to pay to the REGISTERED OWNER named above, or registered assigns, on the
MATURITY DATE (staited above), the PRINCIPAL SUM (stated above) upon
presentation and surrender qfthis bond at the office of the Town Clerk, Town of Southold,
Town Hall, 53095 Main Road, Southold, Ney,/York, as fiscal agent (herein called "Fiscal
Agent"), or any successor thereto, and to pay interest on such principal sum from March
15, 2009 or from the most recent interest payment date to which interest has been paid at
the iNTEREST RATE (stated above), payable March I5, 2010, September 15, 2010 and
semiannually thereafter on March 15 and September 15 in each year until maturity
Interest hereon shall be payable by wire transfer or clearinghouse funds by the Town or its
agent on each interest payment date to the registered owner hereof at his address as it
appears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be furnished in writing by such registered owner to the Fiscal Agent
as of the close of business on the last day of the month preceding each interest payment
date. The principal of and interest on this bond are payable in any coin or currency of the
United States of America which, at the date of payment, is legal tender for the payment of
public and private debts; provided, however, that interest on this fully registered bond shall
be paid by wire transfer or clearinghouse funds as set forth above.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH HEREIN
REGISTERED REGISTERED
NO. R-21 $355,000
UNITED STATES OF AMERICA
STATE OF NEW YORK
TOWN SOUT.OLD
PUBLIC IMPROVEMENT SERIAL BOND-2009
INTEREST DATE OF ORIGINAL CUSIP
MATURITY DATE RATE ISSUE NUMBER
March 15, 2030 4-3/8 ¥o March 15, 2009 844572 LYI
HUND~D F~-F~E THOUSAND
P~C~AL SUM: THeE
DOLLARS
The TOWN OF SOUTHOLD, ~n the County of Suffolk, a mumctpal corporation of the
State of New York, hereby acknowledges ltself~ndebted and for value received promises
to pay to the ~GISTE~D O~R named above, or registered assigns, on the
MAT~TY DATE (stated above), the P~CIP~ S~ (stated above) upon
nresentation and surrender of this bond at the office of the Town Clerk Town of Southold
Town Hall, 53095 Main Road, Southold, New York, as fiscal agent (herein called "Fiscal
Agent"), or any successor thereto, and to pay interest on such pnnc~pal sum from March
15 2009 or from the most recent interest ~avment date to which interest has been paid at
the ~TE~ST ~TE (stated above), payable March 15, 2010, September 15, 2010 and
semiannuallv thereafter on March 15 and September 15 n each year until maturity.
Interest hereon shall be payable by wire transfer or clearinghouse ~nds by the Town or ~ts
agent on each interest payment date to the registered owner hereof at his address as it
anoears on the registration books of the Town maintained by the Fiscal Agent or at such
other address as may be ~rnished in writing by such registered owner to the F~scat Agent
as of the close of business on the last day of the month preceding each interest payment
date. The principal of and interest on this bond are payable in any coin or cu~ency of the
Un ted States of ~erica which, at the date of payment is egal tender for the payment of
oub tc and private debts; prowded, however, that interest on th~s ~lly registered bond shall
be paid by wire transfer or clearinghouse ~nds as set fo~h above
~FE~NCE IS ~E TO T~ F~T~R PROVISIONS OF THIS BO~ SET
SUPERVISOR'S CERTIFICATE OF AWARD
1, SCOTT A. RUSSELL, Supervisor of the Town of Southold, in the County of
Suffolk, New York (the "Town"), HEREBY CERTIFY AND REPORT AS FOLLOWS:
1. On March 10, 2009, at 11:00 o'clock A.M. (Prevailing Time), bids were
received at the offices of Munistat Services, Inc., 12 Roosevelt Avenue, Port Jefferson Station,
New York.
2. At that time and place, three (3) sealed bids were received for the purchase of
$5,283,000 Public Improvement Serial Bonds-2009 of the Town (the "Bonds") pursuant to the
Notice of Sale of said Bonds heretofore duly published in conformity with the requirements of
the Certificate of Determination executed by the Supervisor as of February 25, 2009, and said
bids were thereupon opened and publicly read.
3. The sealed bids so opened and publicly read were each in legally acceptable
form and were each accompanied by the check required by said Notice of Sale and constituted
signed proposals to purchase all of the Bonds.
4. Forthwith upon receiving, opening, reading and considering said sealed bids, l
caused to be publicly announced that Roosevelt & Cross, lac., and Associates, New York,
New York was the successful bidder to whom the bonds are to be awarded, at the purchase price
of $5,283,000.00 together with interest at the rates to be borne by the Bonds from the date of the
Bonds to the date of payment of the purchase price, said bid of said successful bidder being the
best bid received under the terms of the Notice of Sale therefor and providing the lowest net
interest cost over the life of the Bonds, computed as follows:
Gross Interest ..........................................................
Less Premium Bid Over Par ..................................
Net Interest Cost .....................................................
Net Interest Rate .....................................................
$2,685,883.75
0.00
$2,685,883.75
4.10540%
5. As designated by the aforementioned successful bidder, said Bonds shall bear
interest from their date in each year until maturity at the respective rates per annum stated in the
following table:
Bonds maturing in each of the years 2010 to 2013, inclusve, at 3.00%;
Bonds maturing in each of the years 2014 to 2024, inclusve, at 4.00%;
Bonds maturing in the years 2025 and 2026, at 4-1/8%;
Bonds maturing in each of the years 2027 to 2029, inclusve, at 4.25%; and
Bonds maturing in the year 2030, at 4-3/8%;
such rates of interest being the rates necessary for the Town to sell said Bonds.
6. (a) It is further determined that the annual principal installments of said Bonds
shall be adjusted in amounts necessary to achieve substantially level or declining annual debt
service as set forth in section 58.00 (c)(2) of the Local Finance Law. Said Bonds shall mature on
March 15 in each of the years and principal amounts as set forth below:
$123,000 in the year 2010 $250,000 in the year 202[
220,000 in the year 2011 260,000 in the year 2022
230,000 in the year 2012 270,000 in the year 2023
180,000 in the year 2013 290,000 in the year 2024
185,000 in the year 2014 300,000 in the year 2025
195,000 in the year 2015 310,000 in the year 2026
205,000 in the year 2016 325,000 in the year 2027
215,000 in the year 2017 330,000 in the year 2028
225,000 in the year 2018 345,000 in the year 2029
230,000 in the year 2019 355,000 in the year 2030
240,000 in the year 2020
(b) The gross interest and net interest rate for the Bonds, following adjustment
of the annual principal installments is:
Gross Interest .........................................................
Less Premium Bid Over Par ..................................
Net Interest Cost .....................................................
Net Interest Rate .....................................................
$2,678,083.75
0.00
$2,678,083.75
4.10540%
7. I thereupon returned to said other bidders the Good Faith Check (as defined in
the Notice of Sale of the Town dated February 25, 2009) received, if any, with their aforesaid
sealed bids.
8. Said Bonds will be delivered to the said successful bidder hereinabove referred
to upon receipt of payment in accordance with the provisions of the Notice of Sale.
IN WITNESS WHEREOF, I have hereunto set my hand as of the l0th day of
March, 2009
Supervisor
TOWN CLERK'S CERTIFICATE
I, ELIZABETH A. NEVILLE, Town Clerk of the Town of Southold, in the
County of Suffolk, New York, HEREBY CERTIFY that I have compared the foregoing
Certificate of Award of the Supervisor and the same is a true and complete copy of said
Certificate filed with the Town Board on or before March 19, 2009.
I FURTHER CERTIFY that no resolution electing to reassume any of the powers
or duties delegated to the Supervisor by the resolutions cited in the Certificate of Determination
referred to in said Certificate of Award, has been adopted by said Town Board.
1N WITNESS WHEREOF, I have hereunto set my hand and affixed the
corporate seal of said Town, this /°/~ day of
March, 2009.
(SEAL)
Town Clerk
558534 1 032679 CERT
UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE
Section 1. Definitions
"Annual Information" shall mean the information specified in Section 3 hereof.
"GAAP" shall mean generally accepted accounting principles as in effect from
time to time in the United States.
"Holder" shall mean any registered owner of the Securities and any beneficial
owner of Securities within the meaning of Rule 13d-3 under the Securities Exchange Act of
1934.
"Issuer" shall mean the Town of Southold, in the County of Suffolk, a municipal
corporation of the State of New York.
"MSRB" shall mean the Municipal Securities Rulemaking Board established in
accordance with the provisions of Section 15B(b)(1) of the Securities Exchange Act of 1934.
"NRMSIR" shall mean each nationally recognized municipal securities
information repository within the meaning of Rule 15c2-12.
"Rule 15c2-12" shall mean Rule 15c2-12 under the Securities Exchange Act of
1934, as amended through the date of this Undertaking, including any official interpretations
thereof.
"Securities" shall mean the Issuer's $5,283,000 Public Improvement Serial
Bonds-2009, dated March 15, 2009, maturing in variogs principal amounts on March 15 in each
of the years 2010 to 2030, inclusive, and delivered on the date hereof.
"State Information Depository" shall mean the New York State Information
Depository, if and when created.
Section 2. Obligation to Provide Continuing Disclosure. (a) The Issuer hereby
undertakes, for the benefit of Holders of the Securities, to provide or cause to be provided either
directly or tbrough Munistat Services, Inc., 12 Roosevelt Avenue, Port Jefferson Station, New
York 11776:
(i) to each NRMSIR and to the State Information Depository, no later than
180 days after the end of each fiscal year, the Annual Information relating to such fiscal year,
together with audited financial statements of the Issuer for such fiscal year if audited financial
statements are then available; provided, however, that if audited financial statements are not then
available, unaudited financial statements shall be provided with the Annual Information, and
audited financial statements, if any, shall be delivered to each NRMSIR and to the State
Information Depository within thirty (30) days after they become available and in no event later
than 360 days after the end of each fiscal year; and
558534.1 032679 CERT
(ii) to (a) each NRMSIR, or to the MSRB, and to (b) the State Information
Depository, in a timely manner, notice of any of the following events with respect to the
Securities, if material:
(1) principal and interest payment delinquencies;
(2) non-payment related defaults;
(3)
unscheduled draws on debt service reserves reflecting financial
difficulties;
(4)
unscheduled draws on credit enhancements reflecting financial
difficulties;
(5)
substitution of credit or liquidity providers, or their failure to
perform;
(6)
adverse tax opinions or events affecting the tax-exempt status of the
Securities;
(7) modifications to rights of Securities holders;
(8) bond calls;
(9) defeasances;
(10) release, substitution, or sale of property securing repayment of the
Securities; and
(l 1 ) rating changes.
(iii) to (a) each NRMSIR, or to the MSRB, and to (b) the State Information
Depository, in a timely mariner, notice of a failure to provide by the date set forth in Section
2(a)(i) hereof any Annual Information required by Section 3 hereof.
(b) Nothing herein shall be deemed to prevent the Issuer from disseminating any
other information in addition to that required hereby in the manner set forth herein or in any
other manner. If the Issuer disseminates any such additional information, the Issuer shall have
no obligation to update such information or include it in any future materials disseminated
hereunder.
(c) Nothing herein shall be deemed to prevent the Issuer from providing notice of
the occurrence of certain other events, in addition to those listed above, if the Issuer determines
that any such other event is material with respect to the Securities; but the Issuer does not
undertake to commit to provide any such notice of the occurrence of any material event except
those events listed above.
558534.1 032679 CERT
Section 3. Annual Information. (a) The required Annual Information shall consist
of the financial information and operating data for the preceding fiscal year, in a form generally
consistent with the information contained or cross-referenced in the Issuer's final official
statement relating to the Securities under the headings: "The Town," "Economic and
Demographic Information," "Indebtedness of the Town,"" Finances of the Town," "Real
Property Tax Information," and "Litigation ," and in Appendix A.
(b) All or any portion of the Annual Information may be incorporated in the
Annual Information by cross reference to any other documents which have been filed with (i) the
NRMSIRs and the State Information Depository, or (ii) the Securities and Exchange
Commission. If such a document is a final official statement, it also must be available from the
MSRB.
(c) Annual Information for any fiscal year containing any modified operating
data or financial information (as contemplated by Section 7(e) hereof) for such fiscal year shall
explain, in narrative form, the reasons for such modification and the effect of such modification
on the Annual Information being provided for such fiscal year. Ifa change in accounting
principles is included in any such modification, such Annual Information shall present a
comparison between the financial statements or information prepared on the basis of the
modified accounting principles and those prepared on the basis of the former accounting
principles.
Section 4. Financial Statements. The Issuer's annual financial statements for
each fiscal year shall be prepared in accordance with GAAP as in effect from time to time. Such
financial statements shall be audited by an independent accounting firm.
Section 5. Remedies. If the Issuer shall fail to comply with any provision of this
Undertaking, then any Holder of Securities may enforce, for the equal benefit and protection of
all Holders similarly situated, by mandamus or other suit or proceeding at law or in equity, this
Undertaking against the Issuer and any of the officers, agents and employees of the Issuer, and
may compel the Issuer or any such officers, agents or employees to perform and carry out their
duties under this Undertaking; provided that the sole and exclusive remedy for breach of this
Undertaking shall be an action to compel specific performance of the obligations of the Issuer
hereunder and no person or entity shall be entitled to recover monetary damages hereunder under
any circumstances. Failure to comply with any provision of this Undertaking shall not constitute
an event of default on the Securities.
Section 6. Parties in Interest. This Undertaking is executed and delivered solely
for the benefit of the Holders. No other person shall have any right to enforce the provisions
hereof or any other rights hereunder.
Section 7. Amendments. Without the consent of any holders of Securities, the
Issuer at any time and from time to time may enter into any amendments or changes to this
Undertaking for any of the following purposes:
(a) to comply with or conform to any changes in Rule 15c2-12 (whether required
or optional);
558534.1 032679 CERT
(b) to add a dissemination agent for the information required to be provided
hereby and to make any necessary or desirable provisions with respect thereto;
(c) to evidence the succession of another person to the Issuer and the assumption
of any such successor of the duties of the Issuer hereunder;
(d) to add to the duties of the Issuer for the benefit of the Holders, or to surrender
any right or power herein conferred upon the Issuer;
(e) to modify the contents, presentation and format of the Annual Information
from time to time to conform to changes in accounting or disclosure principles or practices and
legal requirements followed by or applicable to the Issuer or to reflect changes in the identity,
nature or status of the Issuer or in the business, structure or operations of the Issuer or any
mergers, consolidations, acquisitions or dispositions made by or affecting any such person;
provided that any such modifications shall comply with the requirements of Rule 15c2-12 or
Rule 15c2-12 as in effect at the time of such modification; or
(f) to cure any ambiguity, to correct or supplement any provision hereof which
may be inconsistent with any other provision hereof, or to make any other provisions with
respect to matters or questions arising under this Undertaking which, in each case, comply with
Rule 15c2-12 or Rule 15c2-12 as in effect at the time of such amendment or change; provided
that no such action pursuant to this Section 7 shall adversely affect the interests of the Holders in
any material respect. In making such determination, the Issuer shall rely upon an opinion of
nationally recognized bond counsel.
Section 8. Termination. This Undertaking shall remain in full force and effect
until such time as all principal, redemption premiums, if any, and interest on the Securities shall
have been paid,in full or the Securities shall have otherwise been paid or legally defeased
pursuant to the their terms. Upon any such legal defeasance, the Issuer shall provide notice of
such defeasance to each NRMSIR or the MSRB, and the State Information Depository. Such
notice shall state whether the Securities have been defeased to maturity or to redemption and the
timing of such maturity or redemption.
Section 9. Undertaking to Constitute Written Agreement or Contract. This
Undertaking shall constitute the written agreement or contract for the benefit of Holders of
Securities, as contemplated under Rule 15c2-12.
Section 10. Governing Law. This Undertaking shall be governed by the laws of
the State of New York determined without regard to principles of conflict of law.
IN WITNESS WHEREOF, the undersigned has duly authorized, executed and
delivered this Undertaking as of March 19, 2009.
By
_~~~4____t~~°UTHOLD
Supervisor
558534.1 032679 CERT
CLOSING CERTIFICATES
RELATING TO THE BONDS OF THE
TOWN OF SOUTHOLD, IN
THE COUNTY OF SUFFOLK, NEW YORK
OFFICERS' CERTiFICATE AS TO SIGNATURES AND LITIGATION
WE, the undersigned officers of the Town of Southold, in the County of Suffolk,
a municipal corporation of the State of New York and herein referred to as the "Issuer",
HEREBY CERTIFY that on or before the date hereof, each of the Issuer's $5,283,000 Public
Improvement Serial Bonds-2009 (the "Bonds"), dated March 15, 2009, and more fully described
in Schedule X attached hereto and hereby made a part hereof, were duly and completely
executed in the name and on behalf of the Issuer by the manual signatures of the undersigned
officers of the Issuer, each of whom did and does hereby adopt such respective signatures, and
the impressing thereon of the official seal of the Issuer, and that on the date hereof, we are the
duly chosen, qualified and acting officers of the Issuer holding the respective offices indicated by
the official titles set opposite our several signatures hereto, for terms expiring on the respective
dates set opposite such titles.
WE FURTHER CERTIFY that the seal which is impressed upon this certificate
has been impressed upon each of the Bonds and is the legally adopted, proper and only official
corporate seal of the Issuer.
WE FURTHER CERTIFY that no litigation of any nature is now pending or
threatened restraining or enjoining the issuance or delivery of said Bonds or the levy or
collection of any taxes to pay the interest on or principal of said Bonds, or in any manner
questioning the authority or proceedings for the issuance of said Bonds or the levy or collection
558534.1 032679 CERT
of said taxes, or relating to said Bonds or affecting the validity thereof or the levy or collection of
said taxes, that neither the corporate existence or boundaries of the Issuer nor the title of any of
the present officers thereof to their respective offices is being contested, that no authority or
proceedings for the issuance of said Bonds has or have been repealed, revoked or rescinded, and
that no Bonds of the Issuer have been heretofore issued under or pursuant to such proceedings.
1N WITNESS WHEREOF,
we have hereunto set our hands and said corporate
seal has hereunto been affixed as of the 19th day of
March, 2009.
OFFICIAL TITLE
Supervisor
Town Clerk
TERM OF OFFICE
EXPIRES
December 31,2011
December 31, 2009
(SEAL)
I HEREBY CERT1FY that the signatures of the officers of the above-named
Village, which appear above, are true and genuine and that I know said officers and know them
to hold the respective offices set opposite their signatures.
~.~ Title
Name and,Address of Bank/~
558534.1 032679 CERT
ATTORNEY'S CERTIFICATE
I, Patricia A. Finnegan, Esq., HEREBY CERTIFY that I am a licensed attorney at
law of the State of New York, having offices at 53095 Main Road, Southold, New York, and am
the duly chosen, qualified and acting Town Attorney of the Issuer hereinafter named, that I am
familiar with the acts and proceedings heretofore had and or taken by said Issuer or by its
officers relative to the authorization, sale and issuance of $5,283,000 Public Improvement Serial
Bonds-2009, of the Town of Southold, in the County of Suffolk, a municipal corporation of the
State of New York, and herein referred to as the "Issuer", all as described and set forth in
Schedule X annexed hereto and by this reference made a part hereof; that no litigation of any
nature is now pending or threatened restraining or enjoining the issuance or delivery of said
Bonds or the levy or collection of any taxes to pay the interest on or principal of said Bonds, or
in any manner questioning the authority or proceedings for the issuance of said Bonds or for the
levy or collection of said taxes, or relating to said Bonds or affecting the validity thereof or the
levy or collection of said taxes; that neither the corporate existence or boundaries of the Issuer
nor the title of any of the present officers thereof to their respective offices is being contested;
and that no authority or proceedings for the issuance of said Bonds has or have been repealed,
revoked or rescinded.
I HEREBY FURTHER CERTIFY that there is no controversy or litigation of any
nature now pending or threatened by or against the Issuer, wherein an adverse judgment or ruling
could have a material adverse impact on the financial condition of the Issuer or adversely affect
the power of the Issuer to levy, collect or enforce the collection of taxes or other revenues for the
payment of the Bonds, which has not been disclosed in the Official Statement relating to the
Bonds~
1N WITNESS WHEREOF,
I2a l, h;0r yt° set mY hand as °f the 19th day of
558534 1 032679 CERT
CERTIFICATE OF DELIVERY AND PAYMENT
I, SCOTT A. RUSSELL, the duly elected, qualified and acting Supervisor of the
Issuer hereinafter named, HEREBY CERTIFY that on the 19th day of March, 2009, I delivered
or caused to be delivered to Roosevelt & Cross, Inc., and Associates, New York, New York,
the purchaser thereof, $5,283,000 aggregate principal amount of Public Improvement Serial
Bonds-2009 (the "Bonds") of the Town of S outhold, in the County of Suffolk, a municipal
corporation of the State of New York and herein referred to as the "Issuer", each duly and
completely executed by or on behalf of the Issuer and all as described and set forth in Schedule
X annexed hereto and by this reference made a part hereof, and that at or before the time of such
delivery of said Bonds, I received from said purchaser the following amounts:
Received prior to such delivery ................................................... $ 105,660.00
Received at time of such delivery .................................................... $5,179,655.38
Total amount received ..................................................................... $5,285,315.38
being full payment for said Bonds in accordance with the contract of sale thereof, computed as
follows:
Contract Price ................................................................................. $5,283,000.00
Interest on said Bonds accrued to the date of delivery ...................... 2,315.38
Total .............................................................................................. $5,285,315.38
I FURTHER CERTIFY that at the time of such delivery of said Bonds, a written
opinion was rendered by the law firm of Hawkins Delafield & Wood LLP, dated as of the date of
such delivery, as to the validity of said Bonds, said opinion (except as to omission of the date of
such delivery) having been printed on each of said Bonds.
1N WITNESS WHEREOF, I have hereunto set my hand as of the 19th day of
March, 2009.
Supervisor
558534.1 032679 CERT
SCHEDULE X
Bonds of the TOWN OF SOUTHOLD, NEW YORK, substantially in form, and
offered for sale and sold, as provided by the Certificate of Determination executed by the
Supervisor as of February 25, 2009 and to be delivered thereunder in the aggregate principal
amount of $5,283,000.
Number of Issues:
Amount and Title:
Dated:
Denominations,
Numbers and Letters'
Place of Payment of
Principal and Interest:
Maturities, Interest
Rates and Payment Dates:
1
$5,283,000 Public Improvement Serial Bonds-2009
March 15, 2009
In the form of registered Bonds without coupons in
denominations of $5,000 or integral multiples
thereof, except for one necessary odd denomination,
registered in the name of Cede & Co., as nominee
of The Depository Trust Company, New York, New
York, numbered separately and consecutively
upward with the letter "R" prefixed thereto.
The office of the Town Clerk, Town of Southold,
Town Hall, 53095 Main Road, Southold, New York
(the "Fiscal Agent"). Interest payable by wire
transfer or in clearinghouse funds by the Town or
its agent on each interest payment date to the person
ih whose name the bond is registered at the address
shown on the registration book maintained by the
Fiscal Agent as of the close of business on the last
day of the month preceding each such interest
payment date
Mature on March 15 in the principal amounts in
each of the following years and bear interest at the
respective rates per annum, payable March 15,
2010, September 15, 2010 and semiannually
thereafter on March 15 and September 15 in each
year until maturity, as set forth below:
558534 1 032679 CERT
Year of Principal Interest Year of Principal Interest
Maturity Amount Rate Maturity Amount Rate
2010 $123,000 3.00% 2021
2011 220,000 3.00 2022
2012 230,000 3.00 2023
2013 180,000 3.00 2024
2014 185,000 4.00 2025
2015 195,000 4.00 2026
2016 205,000 4.00 2027
2017 215,000 4.00 2028
2018 225,000 4.00 2029
2019 230,000 4.00 2030
2020 240,000 4.00
$250
260
270
290
300
310 000
325,000
330,000
345,000
355,000
000 4.00%
000 4.00
000 4.00
000 4.00
000 4-1/8
4-1/8
4.25
4.25
4.25
4-3/8
The Bonds maturing on or before March 15, 2019 will not be subject to
redemption prior to maturity. The Bonds maturing on or after March 15, 2020 will be subject to
redemption prior to maturity, at the option of the Town, on March 15, 2019 and thereafter on any
date, in whole or in part, and if in part, in any order of their maturity and in any amount within a
maturity (selected by lot within a maturity), at par, plus accrued interest to the date of
redemption.
The Bonds shall be redeemable prior to maturity upon the giving of notice which
identifies the bonds to be redeemed, by mailing such notice to the registered holders thereof at
their respective addresses as shown upon the registration books of the Fiscal Agent at least 30
days prior to the dates set for any such redemption. If notice of redemption shall have been
given as aforesaid, the Bonds so called for redemption shall become due and payable at the
applicable redemption price on the redemption date designated in such notice, and interest on
such Bonds shall cease to accrue from and after such redemption date.
558534 1 032679 CERT
ARBITRAGE AND USE OF PROCEEDS CERTIFICATE
I, SCOTT A. RUSSELL, Supervisor of the Town of Southold (the "Issuer"), in
the County of Suffolk, New York, HEREBY CERTIFY with respect to the Issuer's $5,283,000
aggregate principal amount Public Improvement Serial Bonds-2009 (the "Bonds"), dated March
15, 2009 and issued on March 19, 2009, as follows:
Unless the context clearly requires otherwise, all capitalized terms not otherwise
defined herein shall have the meanings set forth in Exhibit A attached hereto or in the
Resolutions, the Code or the Regulations (each as defined in Exhibit A):
ARTICLE I
GENERAL
1.1. Authority of Signatory. I am an officer of the Issuer charged with the
responsibility for the execution, delivery, and issuance of the Bonds and am acting for and on
behalf of the Issuer in signing this Arbitrage and Use of Proceeds Certificate (the "Certificate").
1.2. Description of Bonds. The Issuer represents that the Bonds are sold at the
aggregate Issue Price and are further described as set forth in the Certificate of Determination of
the Issuer and on the cover of the Official Statement.
1.3. Purpose of Certificate. This Certificate is made for the purpose of
establishing evidence of the expectations of the Issuer as of the Issue Date as to future events
regarding the amount and use of proceeds of the Bonds. It is intended and may he relied upon
for purposes of Sections 103 and 141 through 150 of the Code, and as a certification described in
Section 1.148-2(b)(2) of the Regulations. This Certificate is executed and-delivered as part of
the record of proceedings in connection with the issuance of the Bonds. The provisions of this
Certificate constitute a contractual obligation of the Issuer in consideration for the purchase of
and payment for the Bonds by the purchaser(s) thereofi
1.4. No Hedge Bonds. The Issuer reasonably expects that 85% of the
Spendable Proceeds of the Bonds will be expended for governmental purposes within 3 years of
the Issue Date. In addition, not more than 50% of the Proceeds of the Bonds are being invested
in investments not acquired to carry out the governmental purposes of the issue at a guaranteed
yield for 4 years or more.
With respect to the Prior Issue, the Issuer reasonably expected as of the issue date
of the Prior Issue that 85% of the spendable proceeds of the Prior Issue would be expended for
governmental purposes within 3 years of such issue date, and, in addition, not more than 50% of
the proceeds of the Prior Issue were invested in investments not acquired to carry out the
governmental purposes of the issue at a guaranteed yield for 4 years or more.
558534.1 032679 CERT
1.5. Reasonable Expectations This Certificate sets forth the facts, estimates
and circumstances now in existence which form the basis for the Issuer's expectation that the
proceeds of the Bonds will not be used in a manner that would cause the Bonds to be Arbitrage
Bonds under Section 148 of the Code or Private Activity Bonds under Sections 103 and 141 of
the Code. To the best of my knowledge and belief, such expectation is reasonable and there are
no other facts, estimates or circumstances that would materially change that expectation.
1.6. No Composite Issue. No other tax-exempt governmental obligations have
been sold fewer than 15 days prior to, or will be sold fewer than 15 days after, the sale date of
the Bonds, pursuant to the same plan of financing which are expected to be paid from
substantially the same source of funds as the Bonds.
1.7. Registration. The Bonds will be issued in registered form.
1.8. No Federal Guarantee. The Issuer represents and covenants that, except
for the gross proceeds of the Bonds which are: (a) invested during the temporary period referred
to in Article III, (b) held in any. refunding escrow or (c) invested in obligations of the United
States Treasury or in obligations issued pursuant to Section 2lB(d)(3) of the Federal Home Loan
Bank Act, as amended by Section 51 l(a) of the Financial Institutions Reform, Recovery and
Enforcement Act of 1989, or any successor provision to Section 2lB(d)(3) of the Federal Home
Loan Bank Act, as amended:
(i) No portion of the payment of principal or interest with respect to the
Bonds is or will be guaranteed directly or indirectly by the United States or any agency or
instrumentality thereof (in this Certificate "federally guaranteed"); and
(ii) No portion of the Gross Proceeds of the Bonds in excess of five percent of
such Gross Proceeds is or will be (A) used in making loans the payment of principal or interest
with respect to which is to be federally guaranteed, or (B)inves'~ed directly or indirectly in
federally insured deposits or accounts.
1.9. Tax Representation. The Issuer expects to be able to and will comply with
all the procedures and provisions set forth in this Certificate, and will do and perform all acts and
things necessary and desirable within its reasonable control in order to assure that interest paid
on the Bonds will be excluded from gross income of the owners of the Bonds for the purpose of
federal income taxation.
1.10. Noncompliance. The Issuer shall perform each of the obligations
undertaken by it in this Certificate unless, in the written opinion of Bond Counsel,
noncompliance with such obligations will not cause interest on the Bonds to be included in gross
income for purposes of Federal income taxation.
1.11. Reliance by Bond Counsel. The representations of the Issuer expressed in
this Certificate may be relied upon by Bond Counsel in connection with the rendering of any
opinion with respect to the Bonds.
558534.1 032679 CERT
1.12. 1RS Form 8038-G. The Issuer will file IRS Form 8038-G, set forth as part
of the record of proceedings for the Bonds, by the 15th day of the second month aPrer the
calendar quarter in which the Bonds are issued.
ARTICLE II
USE OF PROJECT AND PROCEEDS
2.1. Authorization. (a) The Bonds are authorized to be issued pursuant to
applicable provisions of the laws of the State of New York and three bond resolutions duly
adopted by the Town Board on their respective dates (the "Resolution"), as referred to in the
Certificate of Determination executed by the President of the Town Board as of February 25,
2008.
(b) For purposes of this Article II, the term "Original Proceeds" means the
Sale Proceeds received (or deemed to be received) by the Issuer from the sale of the Bonds net of
the amount used or to be used for the payment of all costs and expenses associated with issuing
the Bonds, and excluding accrued interest.
2.2. Purpose of Issue. The Bonds are being issued for various public
improvements in and for the Town (the "Project"), as further described in the Resolution. The
portion of the Bonds being issued to finance the New Project is called the "New Money Bonds."
The portion of the Bonds being issued to refinance the Prior Project is called the "Current
Refunding Bonds."
2.3. Use of Original Proceeds. (a) The Original Proceeds of the New Money
Bonds in the amount of $5,000,000 shall be used to provide original financing for the Project.
(b) The Original Proceeds of the Current Refunding Bonds in the amount of
$283,000, along with $60,300 in funds available therefor, will be used to redeem bond
anticipation notes in the aggregate principal amount of $343,300 (the "Prior Issues"), heretofore
issued to finance the Prior Projects. The costs of the Project to be financed or refinanced with
the Original Proceeds of the Bonds are Capital Expenditures. None of such costs are Working
Capital Expenditures.
2.4. Ownership/Lease/Sale. The Project will be owned by the Issuer and will
not be leased to any person who is not a state or local governmental unit. It will not be sold or
otherwise disposed of, in whole or in part, except for incidental sales of surplus items the
proceeds of which will not constitute net operating profits or net capital profits to the Issuer,
prior to the last maturity date of the Bonds.
2.5. Private Loans. Not more than the lesser of 5 percent or $5,000,000 of the
Proceeds of the Bonds will be used directly or indirectly to make loans to persons other than a
state or local governmental unit.
26 Private Use Either (a) the aggregate amount of the Proceeds of the Bonds
used directly or indirectly in a trade or business carried on by a person other than a state or local
558534 1 032679 CERT
governmental unit ("Private Use") will not exceed 10% of such Proceeds or (b) not more than
10% of the principal and interest due on the Bonds during the term of the Bonds, under the terms
of the Bonds or any underlying arrangement, directly or indirectly, (i) will be secured by any
interest in property used or to be used for a Private Use or in payments in respect of property
used or to be used for a Private Use, or (ii) will be derived from payments, whether or not to the
Issuer, in respect of property or borrowed money used or to be used for a Private Use.
2.7. Unrelated/Related Disproportionate Use. None of the Proceeds of the
Bonds will be used directly or indirectly in the trade or business of a person other than a state or
local governmental unit that is unrelated or related and disproportionate to the governmental use
of the property being financed, including any private loan financing described in Section 2.5
above which meets this test. For purposes of this Certificate, Proceeds of the Bonds are allocable
to an unrelated Private Use if such use is neither directly nor operationally related to a
governmental use and Proceeds of the Bonds are allocable to a disproportionate related Private
Use to the extent that the Proceeds of the Bonds which are to be used to finance property used by
a person other than a state or local governmental unit in a trade or business which is related to
the governmental use of the property referred to in Section 2.6 above, exceeds the Proceeds of
the Bonds which are to be used for the governmental use to which such Private Use relates.
2.8. Private Use Defined. For purposes of Sections 2.6 and 2.7 above, unless
otherwise provided in this Certificate, a Private Use consists of any contract or other
arrangement including, without limitation, leases, management contracts, guarantee contracts,
take or pay contracts, or put or pay contracts, which provides for a use of the Project or any
portion of the Project by a person or persons who are not state or local governmental units on a
basis different than the general public. The Issuer has not and will not enter into any such
contract or arrangement without first consulting with Bond Counsel.
2.9. Reimbursement. Proceeds of the Bonds used to reimburse the Issuer for
amounts expended in anticipation of the issuance-of the Bonds are considered expended on the
date of the reimbursement but only if (i) a declaration of intent to reimburse such expenditure is
made prior to or within 60 days after the date of the original expenditure (except for certain
preliminary expenditures described in Section 1.150-2(0(2)) of the Regulations), and (ii) the
reimbursement is made within 18 months of the later of the placed-in-service date of the Project
or the date of the original expenditure (but in no event more than three years after the original
expenditure was paid). The expenditures to be reimbursed are Capital Expenditures. The Issuer
will not use any Proceeds of the Bonds for any reimbursement purpose that does not otherwise
qualify as an expenditure pursuant to Section 1.150-2 of the Regulations or prior law, as
applicable.
558534.1 032679 CERT
ARTICLE III
ARBITRAGE
3.1. Temporary Period-Refunding. With respect to the Current Refunding
Bonds and the Prior Issue:
(a) All of the proceeds of the Prior Issue have been expended, or any such
proceeds which have not been expended will be treated as Transferred Proceeds of the Current
Refunding Bonds as of the date the Prior Issue is redeemed. Such Transferred Proceeds may be
invested without restriction as to Yield until three years after the date of original issuance of the
Prior Issue. If any Transferred Proceeds remain unexpended after three years after the date of
original issuance of the Prior Issue, such proceeds will be invested at a Yield not in excess of the
Yield on the Bonds.
(b) A portion of the Proceeds of the Current Refunding Bonds will be used to
refund the Prior Issue within 90 days of the Issue Date. Such Proceeds and any related
Investment Proceeds may be invested during such time without restriction as to Yield. The
balance of the Proceeds of the Current Refunding Bonds will be used to pay cost of issuance of
the Current Refunding Bonds. Such Proceed and any related Investment Proceeds may be
invested for a period of thirteen months after the Issue Date without restriction as to Yield.
3.2. Temporary_ Period-New Money. With respect to the New Money Bonds:
(a) The Issuer has entered into or will enter into within six months from the
Issue Date, binding commitment(s) for the acquisition, construction or accomplishment of the
New Project, and the amount of such commitment(s) with respect to the New Project will or do
exceed the amount equal to 5% of the Sale Proceeds of the New Money Bonds.
(b) In the event the N~w Project has not been completed, work on the
acquisition, construction or accomplishment of the New Project will proceed or is proceeding
with due diligence to completion and the Sales Proceeds of the New Money Bonds will be
expended with due diligence.
(c) The Issuer reasonably expects that at least 85% of the Sale Proceeds of the
New Money Bonds will be expended within three years from the Issue Date.
(d) The Sale Proceeds and Investment Proceeds of the New Money Bonds
may be invested without restriction as to Yield for a temporary period of three years from the
Issue Date, subject to the rebate requirements, if any, set forth in Article IV of this Certificate.
3.3. No Overissuance. The Sale Proceeds of the Bonds do not exceed the total
cost of the New Project, the amount required to refund the Prior Issue and the amount required to
pay costs of issuance of the Bonds.
3.4. Source of Repayment Funds. The Bonds will be paid from taxes and other
revenues of the Issuer.
558534 1 032679 CERT
3.5. Debt Service Fund. The taxes and revenues used to pay principal and
interest on the Bonds, whether or not deposited in a debt service fund (the "Debt Service Fund"),
will be expended within 13 months of the date of deposit in such fund, or the date of their
accumulation, in the payment of debt service on the Bonds. Any amounts received from the
investment of such deposit or accumulation will be expended within one year of receipt. The
Debt Service Fund, if any, will be used to achieve a proper matching of revenues and debt
service and will be depleted at least annually except for a reasonable carryover amount which
will not exceed the greater of the earnings on such fund for the immediately preceding Bond
Year or one-twelfth of the debt service on the Bonds for the immediately preceding Bond Year.
3.6. Sinking Funds. Except for the Debt Service Fund described in Section 3.5
above, the Issuer has not created or established, and does not expect to create or establish, any
sinking fund, debt service reserve fund or other similar fund which the Issuer reasonably expects
to use to pay principal or interest on the Bonds.
3.7. Universal Cap. On each Valuation Date, the Issuer will value the
Universal Cap and the Nonpurpose Investments allocable to the Bonds under the Universal Cap.
Nonpurpose Investments in a bona fide debt service fund such as the Debt Service Fund
described in Section 3.5 above do not reduce the aggregate value of Nonpurpose Investments
that may be allocated to the Bonds under the Universal Cap. Nonpurpose Investments cease to
be allocated to the Bonds to the extent such Nonpurpose Investments have been expended for the
governmental purpose of the Bonds, or to the extent the Value of such investments exceeds the
value permitted to be allocated to the Bonds under the Universal Cap. To the extent Nonpurpose
Investments cease to be allocated to the Bonds and the Value of the Universal Cap exceeds the
Value of the remaining Nonpurpose Investment allocated to the Bonds, other Nonpurpose
Investments may become allocated to the Bonds, provided that such Nonpurpose Investments are
not already properly allocated to another bond issue and provided that such allocation does not
cause the Value of Nonpurpose Investments allocated to the Bonds to exceed the Universal Cap.
Generally, if Gross Proceeds of the Bonds invested in Nonpurpose Investments
exceed the Universal Cap on a Valuation Date, such Nonpurpose Investments cease to be
allocated to the Bonds in the following order:
(i) amounts allocable to Replacement Proceeds,
(ii) amounts allocable to Transferred Proceeds,
(iii) amounts allocable to Sale Proceeds and Investment Proceeds of the Bonds.
Where a Nonpurpose Investment ceases to be allocated to the Bonds, such
Nonpurpose Investment may be reallocated under the Universal Cap calculated with respect to
another bond issue. A Nonpurpose Investment which is reallocated to another bond issue may be
valued under the same valuation method pursuant to which it was valued for purposes of
applying the Universal Cap with respect to the Bonds.
Notwithstanding anything in this Certificate to the contrary, the failure to perform
the determination of Nonpurpose Investments allocable to the Bonds as of a Valuation Date will
558534 1 032679 GERT
not be considered a violation of this provision i_f the Value of Nonpurpose Investments allocated
to the Bonds did not exceed the Value of the Bonds outstanding on such date.
3.8. Yield. When used in this Certificate, the term Yield is computed as
described in the Regulations and, in connection with the Bonds or any investment acquired with
the Gross Proceeds of the Bonds, refers to the Yield computed by the actuarial or present worth
method using a 360-day year and semiannual compounding, and means that discount rate which,
when used in computing the Present Value of all payments of principal and interest to be paid on
an obligation, produces an amount equal to, in the case of the Bonds, the Issue Price of the
Bonds with certain adjustments as required by the Regulations, and in the case of an Investment,
the purchase price of such Investment. The underwriters of the Bonds have made certain
representations regarding the Issue Price of the Bonds, which representations are included as part
of the record of legal proceedings relating to the Bonds. The Yield on the Bonds is as shown in
Form 8038-G.
The Issuer will not enter into any hedge, contract to sell call right options or other
arrangement with respect to the Bonds without first consulting with Bond Counsel.
3.9. Yield Reduction Payments. The Issuer may make Yield Reduction
Payments, as such term is defined in the Regulations, to the Internal Revenue Service for the
purpose of reducing the Yield on investments under certain circumstances. The Issuer will
consult with Bond Counsel prior to making any such payments.
3.10. No Replacement Proceeds. The weighted average maturity of the Bonds,
as set forth in the Form 8038-G, does not exceed 120 percent of the average reasonably expected
useful life of the Project.
3.11. Investments at Fair Market Value. The Issuer has not entered and will not
enter into any transaction .to reduce the Yield on the investment of the Gross Proceeds of the
Bonds in such a manner that the amount to be rebated to the Federal government pursuant to
Article IV below is less than it would have been had the transaction been at arm's length and the
Yield of the Bonds not been relevant to either party to the transaction~ All investments of Gross
Proceeds of the Bonds will be made on an arms' length, Fair Market Value basis.
ARTICLE IV
REBATE
4.1. Rebate Compliance. The Issuer understands that the continued non-
inclusion of interest on the Bonds for purposes of federal income taxation depends, in part, upon
compliance with the arbitrage limitations imposed by Section 148 of the Code, including, the
rebate requirements described in Sections 4.3 and 4.5 below with respect to the Bonds (and the
Prior Issue) unless the Issuer complies with Sections 4.2(a) and 4.2(b) below or qualifies for one
or more of the rebate exceptions described in Section 4.4 below.
4.2. Rebate Options.
Bonds, the Issuer will:
With respect to the investment of the Proceeds of the
558534 1 032679 CERT
(a) invest all Gross Proceeds of the Bonds at all times from the Issue Date
until expended in Investments not constituting Investment Property for purposes of Section 148
of the Code such as obligations of a state or of a political subdivision of a state, the interest on
which is excluded from gross income for purposes of Federal income taxation under Section 103
of the Code and is not a preference item for purposes of the alternative minimum tax imposed by
Section 55 of the Code,
(b) invest all Gross Proceeds of the Bonds in obligations having a Yield that
does not exceed the Yield on the Bonds, or
(c) comply with the provisions regarding rebate or qualify for one or more of
the exceptions to rebate as described in this Article IV.
4.3. Rebate Requirement for the Bonds. Section 148(0 of the Code requires
the payment to the United States of the excess of the amount earned on the investment of Gross
Proceeds in Nonpurpose Investments over the amount that would have been earned had the
amount so invested been invested at a rate equal to the Yield on the Bonds, together with any
income attributable to such excess. Except as provided in Section 4.4 below, all Gross Proceeds
of the Bonds are subject to this requirement. In order to meet the rebate requirement of the
Code, the Issuer will take the following actions:
(a) Record of Investments. The Issuer will record the date of receipt, amount
and source of any Gross Proceeds, e.g., Proceeds from the sale of the Bonds, loan repayments,
investment earnings and Transferred Proceeds. For each Nonpurpose Investment acquired with
or allocated to Gross Proceeds of the Bonds, the Issuer will record the purchase date or allocation
date of such investment, its purchase price (excluding any broker or dealer's commission or
discount), or, if not acquired directly with Gross Proceeds, its value on the date the Nonpurpose
Investment is allocated to Gross Proceeds, accrued interest due on its purchase date or allocation
date, its face amount, its coupon rate, its Yield, the frequency of its interest payment, its
disposition price (excluding any broker or dealer's commission or discount), the accrued interest
due on its disposition date and its disposition date. In addition, the Issuer will record the date
and amount of all expenditures of Gross Proceeds of the Bonds, including expenditures for
rebate, other than expenditures to acquire Investments.
(b) Computation of Rebate Amount. Subject to the special rules set forth in
Section 4.4 below, the Issuer will determine the Rebate Amount on each Computation Date. The
Rebate Amount as of any Computation Date is the excess of the Future Value of all receipts with
respect to Nonpurpose Investments over the Future Value of all payments with respect to the
purchase of Nonpurpose Investments or the allocation of such investments to the Gross Proceeds
of the Bonds, determined as of each Computation Date. To the extent amounts received from
Investments are reinvested, these amounts may be netted against each other and not taken into
account in the Computation of Rebate Amount. The Issuer will determine the nonpurpose
receipts and nonpurpose payments as described below~
(i) Receipts. Receipts with respect to Nonpurpose Investments include (A)
amounts actually or constructively received from a Nonpurpose Investment (including amounts
558534 1 032679 CERT
treated as received from a commingled fund), such as earnings and return of principal; (B) for a
Nonpurpose Investment that ceases to be allocated to the Bonds before its disposition or
redemption date (e.g., an Investment that becomes allocable to transferred proceeds of another
issue or that ceases to be allocable to the Bonds pursuant to the Universal Cap under Section
1.148-6 of the Regulations) or that ceases to be subject to the rebate requirement on a date earlier
than its disposition or redemption date (e.g., an investment allocated to a fund initially subject to
the rebate requirement but that subsequently qualifies as a bona fide debt service fund), the
Value of that Nonpurpose Investment on that date; (C) for a Nonpurpose Investment that is held
at the end of a Computation Period, the Value of that Investment at the end of that period; and
(D) any recovery of an overpayment of rebate.
(ii) Payments. Payments with respect to Nonpurpose Investments include: (A)
amounts actually or constructively paid to acquire a Nonpurpose Investment (or treated as paid to
a commingled fund); (B) for a Nonpurpose Investment that is first allocated to the Bonds on a
date after it is actually acquired (e.g., an investment that becomes allocable to Transferred
Proceeds or to Replacement Proceeds) or that becomes subject to the rebate requirement on a
date after it is actually acquired (e.g., an Investment allocated to a reasonably required reserve or
replacement fund for a Construction Issue at the end of the 2-year spending period), the Value of
that Investment on that date; (C) for a Nonpurpose Investment that was allocated to the Bonds at
the end of the preceding Computation Period, the Value of that Investment at the beginning of
the Computation Period; (D) on the fifteenth day of each Bond Year during which there are
amounts allocated to Gross Proceeds of the Bonds that are subject to the rebate requirement, and
on the final maturity date, a Computation Credit of $1,000; (E) Yield Reduction Payments on
Nonpurpose Investments made pursuant to Section 1.148-5(c) of the Regulations; and (F)
payments of rebate amounts when made.
4.4. Exceptions to Rebate Requirement. Notwithstanding anything in Section
4.3 above to the contrary, some or all of the Gross Proceeds of the Bonds are not subject to the
rebate requirement if the conditions described below are satisfied.
(a) Exception for Gross Proceeds Entirely Spent Within Six Months. If all of
the Gross Proceeds of the New Money Bonds or the Current Refunding Bonds (other than
amounts in the Debt Service Fund and proceeds of the Prior Issue that become Transferred
Proceeds of the Current Refunding Bonds), as the case may be, including investment earnings
received with respect to all funds and accounts established with respect to the Bonds except the
Debt Service Fund, have been expended for the governmental purpose of the New Money Bonds
or the Current Refunding Bonds, as the case may be, within six months (or alternatively with
respect to the Gross Proceeds of the New Money Bonds, 95% within six months and 100%
within one year) after the Issue Date, then the only Nonpurpose Investments to be taken into
account in the calculation of the Rebate Amount with respect to the New Money Bonds or the
Current Refunding Bonds, as the case may be, are any Gross Proceeds of the New Money Bonds
or the Current Refunding Bonds, as the case may be, arising after such six months which were
not reasonably anticipated as of the Issue Date and proceeds of the Prior Issue that become
Transferred Proceeds of the Current Refunding Bonds unless such Transferred Proceeds qualify
for one or more of the rebate exceptions applicable to the Prior Issue. The existence of sinking
fund or pledged fund proceeds or the expectation that such proceeds will arise within six months
558534.1 032679 CERT
of the Issue Date will make the six-month expenditure exception to rebate inapplicable. For
purposes of this exception, Gross Proceeds used to pay principal of the Bonds are not treated as
expended for the governmental purpose of the Bonds.
(b) Exception for Gross Proceeds Entirely Spent Within Eighteen Months. If
all of the Gross Proceeds of the New Money Bonds (other than amounts in the Debt Service
Fund), including investment earnings received with respect to all funds and accounts established
with respect to the New Money Bonds except the Debt Service Fund, have been expended for the
governmental purpose of the New Money Bonds in accordance with the following schedule
measured from the Issue Date: (a) at least 15 percent within 6 months (the "first spending
period"); (b) at least 60 percent within 12 months (the "second spending period"); and (c) 100
percent within 18 months (the "third spending period"); then the only Nonpurpose Investments
to be taken into account in the calculation of the Rebate Amount with respect to the New Money
Bonds are any Gross Proceeds arising after such 18 months which were not reasonably
anticipated as of the Issue Date. The existence of sinking fund or pledged fund proceeds or the
expectation that such proceeds will arise within eighteen months of the Issue Date will make the
eighteen-month expenditure exception to rebate inapplicable. For purposes of this exception,
Gross Proceeds used to pay principal of the Bonds are not treated as expended on the
governmental purpose of the issue. For purposes of determining compliance with the first two
spending periods, the amount of Investment Proceeds included in Gross Proceeds of the New
Money Bonds is determined based on the Issuers's reasonable expectations on the Issue Date.
The spending requirement for the third spending period is, nevertheless, satisfied if the unspent
amount is a result of a Reasonable Retainage as defined in Section 1.148-7(h) of the Regulations
as modified by Section 1,148-7(d)(2) of the Regulations and such unspent amount is expended
within 30 months of the Issue Date. The spending requirement for the third spending period is
also, nevertheless, satisfied if the Issuer exercises due diligence to complete the New Project and
the unspent amount does not exceed the lesser of 3% of the Issue Prise of the New Money Bonds
or an amount equal to the product of $250,000 times the ratio of the Issue Price of the New
' Money Bonds over the Issue Price of the Bonds.
(c) Exception for Gross Proceeds Entirely Spent Within Twenty-Four
Months. The Issuer reasonably expects the New Money Bonds to qualify as Construction Bonds
because at least seventy-five percent (75%) of the Available Construction Proceeds are to be
used for expenditures of construction, reconstruction or rehabilitation of property which is
owned by the Issuer. If all of the Available Construction Proceeds of the New Money Bonds
have been expended for the governmental purpose of the New Money Bonds in accordance with
the following schedule measured from the Issue Date: 10% within 6 months (the "first spending
period"), 45% within 12 months (the "second spending period"), 75% within 18 months (the
"third spending period") and 100% within 24 months (the "fourth spending period"), then no
Nonpurpose Investments are to be taken into account in the calculation of the Rebate Amount
with respect to the New Money Bonds. For purposes of this exception, Available Construction
Proceeds used to pay principal of bonds are not treated as expended on the governmental purpose
of the New Money Bonds. For purposes of determining compliance with the first three spending
periods, the amount of Investment Proceeds included in Available Construction Proceeds of the
New Money Bonds is determined based on the Issuers's reasonable expectations on the Issue
Date. The spending requirement for the fourth spending period is, nevertheless, satisfied if the
558534.1 032679 CERT
unspent amount is a result of a Reasonable Retainage as defined in Section 1.148-7(h) of the
Regulations and such unspent amount is expended within 36 months of the Issue Date. The
spending requirement for the fourth spending period is also, nevertheless, satisfied if the Issuer
exercises due diligence to complete the New Project and the unspent amount does not exceed the
lesser of 3% of the Issue Price of the New Money Bonds or an amount equal to the product of
$250,000 times the ratio of the Issue Price of the New Money Bonds over the Issue Price of the
Bonds. In connection with this rebate exception, the Issuer elects to pay the Rebate Amount
calculated for the period starting from the Issue Date in the event of noncompliance with the two
(2) year phased expenditure requirement.
(d) Debt Service Fund Exception. If the average maturity of the Bonds is at
least 5 years and the rates of interest do not vary during the term of the Bonds, then any amount
earned on the Debt Service Fund (including amounts representing accrued interest but excluding
amounts representing capitalized interest) will not be taken into account in determining the
Rebate Amount.
4.5. Payment to United States. (a) If the Issuer is required to make a rebate
payment to the United States. Unless the Bonds are redeemed prior to such time, the Issuer will
pay to the United States, not later than 60 days after each Installment Computation Date, an
amount which, when added to previous rebate payments made with respect to the Bonds, is equal
to not less than 90 percent of the Rebate Amount, less the Computation Date Credit. The Issuer
will pay to the United States, not later than 60 days after the Bonds are fully paid or redeemed,
100 percent of the Rebate Amount, less the Computation Date Credit. If the final rebate payment
is made within 60 days after the Final Computation Date, interest on the Rebate Amount will be
deemed to accrue at the underpayment rate under Section 6201 of the Code, beginning on the
date the Rebate Amount is due and ending on the date 10 days before it is paid.
(b) The Issuer will mail each payment to the Internal Revenue Service Center,
Philadelphia, Pennsylvania 19255. Each payment shall be accompanied by the copy of the Form
8038-T and the Form 8038-G or 8038-GC filed with respect to the Bond issue and a statement
identifying the Issuer and the Bonds, including the CUSIP number for the Bond with the latest
maturity for which there is a CUSIP number.
4.6. Recordkeeping. In connection with rebate requirement, the Issuer will
maintain the following records:
(a) The Issuer will retain records of the determinations made pursuant to
Section 4.3 until six years after the retirement of the last obligation of the issue.
Section 4.5.
(b)
The Issuer will record all amounts paid to the United States pursuant to
558534.1 032679 CERT
4.7. Rebate Regarding Prior Issues. The Issuer understands that it must make a
final rebate accounting and submit a Form 8038-T, if applicable, to the Internal Revenue Service
with any required rebate or penalty payments within 60 days of the final redemption date of the
Prior Issue with respect to the Prior Issue being refunded with Proceeds of the Current Refunding
Bonds.
ARTICLE V
BANK QUALIFICATION
5.1. Designation. The Bonds are hereby designated as "qualified tax-exempt
obligations" pursuant to the provisions of Section 265 o£the Code. In making such designation
it has been determined with respect to the Current Refunding Bonds that the Bonds currently
refund the Prior Issue and that:
(i) the Prior Issue was designated as a "qualified tax-exempt obligation";
(ii) the aggregate face amount of the Bonds do not exceed $30,000,000;
(iii) the Prior Issue had a weighted average maturity of 3 years or less;
(iv)
the maturity date of the Bonds, as measured from the original date of
issuance of the notes issued pursuant to the Resolutions, in renewal of
which such Bonds are being issued, does not exceed 30 years; and
(v)
not more than $30,000,000 of obligations issued by the Issuer during the
calendar year in which the Prior Issue was issued were designated by the
Issuer as "qualified tax-exempt obligations."
In making such designation it has been determined with respect to the New
Money Bonds that:
(i)
the Issuer does not reasonably anticipate that the amount of "qualified tax-
exempt obligations" to be issued by the Issuer during the current calendar
year will exceed $30,000,000; and
(ii)
the amount of "qualified tax-exempt obligations" issued by the Issuer
during the current calendar year does not as of this date, and including this
issue, exceed $30,000,000.
558534 1 032679 CERT
IN WITNESS WHEREOF,
(SEAL)
I have hereunto set my hand and affixed the
corporate seal of the Town of Southold, as of the
19th day of March, 2009.
Supervisor
Exhibit A
Definitions
(This exhibit includes definitions of certain terms which may not be used in the Issuer's
Arbitrage and Use of Proceeds Certificate)
"Available Construction Proceeds" means the Issue Price of the Construction
Bonds (i) plus earnings on the Issue Price and on amounts in any reserve fund not funded from
bond proceeds, and earnings on such earnings and (ii) less the amount of the Issue Price
representing a reasonably required reserve or replacement fund and costs of issuance funded with
proceeds received from the sale of the Bonds. For purposes of this definition earnings include
earnings on any tax-exempt bond. If only a portion of the Bonds constitute Construction Bonds,
a pro-rata portion of the above-described amount will constitute available construction proceeds.
Pre-issuance accrued interest and earnings thereon may be disregarded.
"Bona Fide Debt Service Fund" means a fund, which may include proceeds of
an issue, that is used primarily to achieve a proper matching of revenues with principal and
interest payments within each Bond Year and is depleted at least once each Bond Year except for
a reasonable carry over amount (not in excess of the earnings on the fund for the immediately
preceding Bond Year or one-twelfth of the principal and interest payments on the issue for the
immediately preceding Bond Year).
"Bond Counsel" means any nationally recognized attorney or firm of attorneys,
knowledgeable in the requirements of the Code, and the Regulations, and retained by the Issuer.
"Bond Year" means each one-year period (or shorter period) from the date of
issue that ends at the close of business on the day in the calendar year selected by the Issuer
which day is no later than the fifteenth day within one year of the issue date of the Bonds.
"Bonds" means the $5,283,000 Public Improvement Serial Bonds-2009, dated
March 15, 2009.
"Capital Expenditure" means any costs of a type that is properly chargeable to
capital account (or would be so chargeable with a proper election or by virtue, based on all the
facts and circumstances, of a facility having reached a degree of completion which would permit
its operation at substantially its design level and the facility is, in fact, in operation at such level)
under general federal income tax principles, e.g., costs incurred to acquire, construct or improve
land, buildings, and equipment are generally capital expenditures. Whether an expenditure is a
558534 l 032679 CERT
capital expenditure is determined at the time the expenditure is paid with respect to the property.
Future changes in law do not affect whether an expenditure is a capital expenditure.
"Code" means the Internal Revenue Code of 1986, as amended.
"Computation Date" means any Installment Computation Date or the Final
Computation Date.
"Computation Date Credit" means, for any issue of obligations, an amount
equal to the Future Value of $1,000 for each Bond Year during which there are gross proceeds of
the Bonds on a Computation Date other than the Final Computation Date, and $1,000 on the
Final Computation Date.
"Computation Period" means the period beginning on the day following a
Computation Date (or in the case of the first period, the date of issuance of the Bonds) and
ending on the next succeeding Computation Date.
"Construction Bonds" means an issue in which all of the bonds are either (i)
Governmental Bonds; (ii) Qualified 501(c)(3) bonds or (iii) Private Activity Bonds to finance
property owned by a governmental unit or a 501(c)(3) organization, if at least 75 percent of the
Available Construction Proceeds of the issue are to be used, or are expected to be used for
Construction Expenditures for property which is owned by a governmental entity or a 501(c)(3)
organization.
"Construction Expenditures" means Capital Expenditures which are properly
chargeable to or may be capitalized as part of the basis of (a) real property other than
expenditures for the acquisition of any interest in land or any interest in real property other than
land, (b) Constructed Personal Property; or (c) specially developed computer software that is
functionally related and subordinate to real property or Constructed Personal Property.
Construction Costs may include the acquisition of an interest in real property (other than land) if
such acquisition is pursuant to a contract which requires the seller to build or install the property
(e.g., a "turnkey" contract) and the property has not been built or installed at the time the parties
enter into the contract. For purposes of this definition, real property means land improvements,
buildings, other inherently permanent structures, including items that are structural components
of such buildings or structures, wiring in a building, plumbing systems, central heating or central
air-conditioning systems, pipes or ducts, elevators or escalators installed in a building, paving
parking areas, roads, wharves and docks, bridges, and sewage lines.
55853zi.1 032679 CERT
"Fair Market Value" of an Investment shall have the following meanings:
(a) In General. Except as elsewhere specifically stated below, the Fair Market
Value of an Investment is the price at which a willing buyer would purchase the Investment from
a willing seller in a bona fide, arm's -length transaction.
(b) United States Treasury Obligation. The Fair Market Value of a United States
Treasury Obligation that is purchased directly from the United States Treasury is its purchase
price.
(c) Certificate of Deposit. The Fair Market Value ora certificate of deposit with a
fixed interest rate, a fixed payment schedule, and a substantial penalty for early withdrawal is its
purchase price provided, the Yield on the certificate of deposit is not less than (i) the Yield on
reasonably comparable direct obligations of the United States and (ii) the highest Yield
published by the provider and currently available from the provider on reasonably comparable
certificates of deposit offered to the public.
(d) Guaranteed Investment Contracts. The Fair Market Value of a guaranteed
investment contract is its purchase price, provided (i) the Issuer makes a bona fide solicitation for
such contract and receives at least three bona fide bids from providers with no material interest in
the issue; (ii) the Issuer purchases the highest-yielding guaranteed investment contract for which
a qualifying bid is made (determined net of broker's fees); (iii) the Yield on such contract
(determined net of broker's fees) is not less than the Yield then available from the provider on
reasonably comparable investment contracts, if any, offered to other persons from a source of
funds other than gross proceeds of tax-exempt bonds; (iv) the determination of the terms of a
guaranteed investment contract takes into account as a significant factor the Issuer's reasonably
expected drawdown schedule for amounts to be invested, exclusive of float and reserves, (v) the
terms of the contract, including collateral security requirements are reasonable, and (vi) the
obligor certifies the administrative costs it is paying to third parties in connection with the
contract. To the extent that the administrative cost does not exceed the lesser of a reasonable
amount based on what would be charged for the same or comparable investment acquired with a
source of funds other than Gross Proceeds of tax exempt bonds or the Present Value of annual
payments equal to five one-hundredths of one percent (0.05%) of the weighted average amount
reasonably expected to be invested each year of the contract, it may be taken into account in
determining Yield, with the effect that it will increase the payments for, or decrease the receipts
from, Investments. For this purpose, Present Value is to be computed using the taxable discount
rate used by the parties to compute the commission or, if not readily ascertainable, a reasonable
taxable discount rate.
"Final Computation Date" means the day the last Bond that is part of the Bonds
is discharged.
"Future Value" or "FV" of a payment or receipt means the amount, determined
by using the economic accrual method (the method of computing yield based on the
558534.1 032679 CERT
compounding of interest at the end of each compounding period), equal to the value of such
payment or receipt at the time it is paid or received (or treated as paid or received), plus interest
assumed to be earned and compounded over the period at a rate equal to the yield on the issue,
using the same compounding interval and financial conventions used to compute yield.
"Governmental Bonds" means bonds which are not Private Activity Bonds.
"Gross Proceeds" means Sale Proceeds, Transferred Proceeds, Investment
Proceeds and Replacement Proceeds.
"Issue Date" means March 15, 2009, the date on which the Bonds are delivered
to the underwriters and payment of the purchase price of the Bonds is received by the Issuer.
"Issue Price" when used in connection with an issue of publicly offered
obligations (determined separately for obligations included in the issue that are not substantially
identical) is the first price at which at least ten percent of each maturity of the obligations are
sold to the public. Bond house, brokers, or similar persons or organizations acting in the
capacity of underwriters or wholesalers are not included in the definition of "public" for
purposes of the preceding sentence. If the obligations are privately placed, the Issue Price is the
price paid for them by the first buyer. The Issue Price of obligations that are publicly offered in
a bona fide public offering is determined on the basis of actual facts aad reasonable
circumstances existing on the sale date unadjusted for subsequent occurrences.
"Installment Computation Date" means the fifteenth day of the fifth Bond Year
and the fifteenth day of each succeeding fifth Bond Year (until and excluding the Final
Computation Date) and, if the Issuer so elects, the fifteenth day of any Bond Year.
"Investment" means (i) any security (within the meaning of Section 165(g)(2)(A)
or (B) of the Code, (ii) any obligation (other than tax-exempt obligations which are not
"specified private activity bonds" within the meaning of Section 57(a)(5)(C) of the Code), (iii)
any annuity contract within the meaning of Section 72 of the Code, (iv) any residential real
property for family units not located within the jurisdiction of the Issuer and which is not
required to implement a court-ordered or approved housing desegregation plan or (v) any
investment-type property that is held as a passive vehicle for the production of income, including
any prepayment for property or services if a principal purpose of prepayment is to receive an
investment return from the time the prepayment is made until the time payment would otherwise
have been made.
558534.1 032679 CERT
"Investment Proceeds" means any amounts actually or constructively received
from investing proceeds of the Bonds.
"Issuer" means Town of Southold, in the County of Suffolk, New York.
"Multipurpose Issue" means an issue the proceeds of which are used for two or
more separate purposes determined in accordance with Section 1.148-9(h) of the Regulations.
"Net Sale Proceeds" means sale proceeds less the portion of those sale proceeds
invested in a reasonably required reserve or replacement fund or as part of a minor portion.
"Nonpurpose Investment" means any Investment in which Gross Proceeds are
invested and which is not acquired to carry out the governmental purpose of the issue.
Bonds.
"Official Statement" means the Official Statement of the Issuer relating to the
"Person" means any individual, corporation, partnership, joint venture,
association, joint stock company, trust, unincorporated organization or government or any
agency or political subdivision thereo£
"Plain Par Bond" means a qualified tender bond or a bond that (i) is issued with
original issue discount equal to not more than 2 percent of the stated redemption price at maturity
plus the amount of original issue premium attributable exclusively to underwriters'
compensation, (ii) is issued for a price that does not include Pre-Issuance Accrued Interest,
(iii) bears interest from the issue date at a single stated fixed rate or is a variable rate obligation
under Section 1275 of the Code, in either case, that pays interest unconditionally payable at least
annually, and (iv)has a lowest stated redemption price not less than its outstanding stated
principal amount.
"Plain Par Investment" means an investment that is an obligation that (i) is
issued with original issue discount (or if acquired on a date other than the issue date, acquired
with market discount or premium) equal to not more than 2 percent of the stated redemption
price at maturity, (ii) is issued for a price that does not include Pre-Issuance Accrued Interest,
(iii) bears interest from the issue date at a single stated fixed rate or is a variable rate obligation
558534.1 032679 CERT
under Section 1275 of the Code that pays interest unconditionally payable at least annually, and
(iv) has a lowest stated redemption price not less than its outstanding stated principal amount.
formula:
"Present Value" or "PV" means the amount determined by using the following
PV= FV
n
(l+i)
where i equals the discount rate divided by the number of compounding intervals
in a year and n equals the sum of(i) the number of whole compounding intervals for the period
beginning on the date as of which Present Value is computed and ending on the date the amount
is to be received or paid or on a Computation Date and (ii) a fraction the numerator of which is
the length of any short compounding interval during such period and the denominator of which is
the length of a whole compounding interval.
"Private Activity Bonds" means bonds which meet the definition contained in
Section 141(a) of the Code and that are not "qualified bonds" as defined in Section 141(e) of the
Code.
"Project" means the projects referred to in the Resolutions, which are being
financed by the Bonds.
"Qualified 501(c)(3) Bonds" means bonds which meet the definition contained
in Section 145 of the Code.
"Qualified Guarantee" means, with respect to a bond, an unconditional transfer,
in any form, of substantially all of the credit risk for all or part of the payments, such as
payments for principal and interest, redemption prices or tender prices, on the guaranteed bonds.
The guarantor must not expect to make any payments other than those pursuant to a direct-pay
letter of credit or similar arrangement for which the guarantor will be immediately reimbursed.
Reasonable procedural or administrative requirements or, in the case of a guarantee against
failure to remarket a qualified tender bond, commercially reasonable limitations based on credit
risk, will not cause the guarantee to be conditional. The guarantor may not be a co-obligor, nor
may the obligor and any related parties combined use more than 10 percent of proceeds of the
guaranteed portion of the bonds. The guarantee fee must not exceed a reasonable arm's-length
charge solely for the transfer of the credit risk. A guarantee will not be qualified unless, as of the
date the guarantee is obtained, the issuer reasonably expects that the present value of all fees for
the guarantee will be less than the present value of the expected interest savings on the issue as a
558534.1 032679 CERT
result of the guarantee. For this purpose, present value is computed using the yield on the issue,
determined with regard to the guarantee fees, as the discount rate.
"Rebate Amount" means with respect to the Bonds, the amount computed as
described in Section 4.3 of the Certificate.
"Regulations" means the Income Tax Regulations promulgated under Sections
103 and 141 to 150 of the Code by the Department of the Treasury from time to time, including
the Regulations published on June 18, 1993 in the Federal Register, as they may be amended
from time to time.
"Replacement Proceeds" means amounts with a sufficiently direct nexus to the
Bonds or Project to conclude that such amounts would have been used for the Project if the
proceeds of the Bonds were not so used to the extent held by or derived from the Issuer or a
controlled entity of the Issuer, including: sinking funds, pledged funds (including negative
pledges), certain other amounts if the term of the issue is longer than necessary for the
governmental purposes of the Bonds, and a bond-funded working capital reserve unless the
Bonds qualify for one of the exceptions provided in the Regulations.
"Resolution" means the bond resolution of the Issuer, as referred to in Section
2.1 of the Certificate.
"Sale Proceeds" means any gmounts actually or constructively received from the
sale of an issue, including amounts used to pay underwriters' discount or compensation, accrued
interest other than Pre-Issuance Accrued Interest, or derived from the sale of a right associated
with a bond as further described in Section 1.148-4(b)(4) of the Regulations.
Series.
"SLG" means a U. S Treasury Book Entry Security, State and Local Government
"Spendable Proceeds" means sale proceeds, less the portion of those sale
proceeds invested in a reasonably required reserve or replacement fund under Section 148(d) of
the Code and as part of a minor portion under Section 148(e) of the Code.
558534 1 032679 CERT
"Transferred Proceeds" means unexpended original or investment proceeds of a
refunded issue which transfer and become proceeds of the refunding issue when proceeds of the
refunding issue are applied to pay principal of the refunded issue.
"Treasury" means the United States Department of Treasury.
"Universal Cap" means the maximum value of Nonpurpose Investments which
may be allocated to the Bonds and is determined by reference to the Value of all outstanding
Bonds of the issue. Nonpurpose Investments shall be taken into account as Nonpurpose Receipts
at their Value on a Valuation Date.
"Valuation Date" means the date on which the value of the Universal Cap and
the Nonpurpose Investments allocable to the Bonds thereunder are determined. With respect to
new money issues, the first Valuation Date shall be the second year anniversary date of the date
of issuance of the Bonds; thereafter, the first day of each Bond Year shall constitute a Valuation
Date. With respect to a refunding issue, each date on which proceeds of the refunded issue
would become transferred proceeds of the refunding issue, e.g. each date on which principal of
the refunded issue is paid with proceeds of the refunding bonds, shall constitute a Valuation
Date. In addition, the first date of each Bond Year shall also be a Valuation Date.
"Value" means, in the case of a Bond, the Value of a Bond and in the case of an
Investment, the Value of an Investment.
"Value of a Bond" means, in the case of a Plain Par Bond, its outstanding stated
principal amount, plus accrued unpaid interest or in the case of a Plain Par Bond actually
redeemed, or treated as redeemed, its stated redemption price on the redemption date plus
accrued unpaid interest. In the case of a bond other than a Plain Par Bond, the value on a date of
such a bond is its Present Value on that date, using the yield on the issue of which the bonds are
a part as the discount factor. In determining the Present Value ora variable rate bond, the initial
interest rate on the bond established by the index or other rate setting mechanism is used to
determine the interest payments on that bond.
"Value of an Investment" means, as of any date, unless the Investment is
required invested as a restricted yield, for any Investment, Fair Market Value as of that date; for
any fixed rate investment, Present Value on that date; and for any Plain Par Investment, the
outstanding stated principal amount, plus accrued unpaid interest, as of that date Yield
restricted investments must be valued at Present Value, amounts allocated or that cease to be
allocated to an issue must be allocated at Fair Market Value, except in cases in which such
Nonpurpose Investments are allocated as a result of the Universal Cap or Transferred Proceeds
558534. ! 032679 CERT
rules in which case they may be valued at Present Value, and amounts allocated to Transferred
Proceeds may not be valued in excess of the value used for arbitrage restrictions applicable to the
Refunded Issue.
"Working Capital Expenditure" means any cost of a type that does not
constitute a Capital Expenditure.
"Yield" means, as of any Computation Date, that discount rate that, when used in
computing the Present Value of(i) all unconditionally payable payments of principal and interest
of or on the bonds included in such fixed yield issue, (ii) all unconditionally payable fees for
Qualified Guarantees and Qualified Hedges on such bonds and (iii) all fees expected to be paid
for Qualified Guarantees and Qualified Hedges, produces an amount equal to the sum of the
Present Value of the aggregate Issue Prices of the bonds comprising the issue (determined using
the same discount rate used to determine the Present Value of payments for principal, interest
and Qualified Hedges and Qualified Guarantees). The Yield is computed as of the issue date of
the fixed yield issue by treating each bond included in the issue that is either subject to
mandatory or contingent early redemption or to certain optional redemption provisions as being
redeemed on its expected early redemption date for an amount equal to its Value on that date. If
a fixed yield bond (i) is subject to optional redemptions within 5 years of its issue date and the
Yield not taking into account the optional redemption is more than 1/8 of 1% above its Yield
assuming the early redemption, (ii) is issued at an Issue Price that exceeds the stated redemption
price at maturity by more than 1/4 of 1% multiplied by the product of the stated redemption price
to maturity and the number of complete years to the first optional redemption date for the bond,
or (iii) bears interest at increasing interest rates, the Yield on the issue including such fixed yiel_d
bond is computed by treating the fixed yield bond as redeemed at its stated redemption price on
the optional redemption d~te that produces the lowest Yield on the issue. No adjustment will be
made on any Computation Date to the Yield on a fixed yield issue as computed on its issue date
unless redemption rights are subsequently transferred to a third party or termination payments
are received with respect to Qualified Hedges. The Yield on a fixed yield bond is calculated in
the same manner as Yield on a fixed yield issue.
558534.1032679CERT
CERTIFICATE OF THE SUPERVISOR WITH RESPECT TO
THE OFFICIAL STATEMENT OF THE TOWN OF
SOUTHOLD, NEW YORK, DATED FEBRUARY 25, 2009,
DISTRIBUTED 1N CONNECTION WITH THE SALE OF THE
$5,283,000 PUBLIC IMPROVEMENT SERIAL BONDS-2009
I, SCOTT A. RUSSELL, Supervisor of the Town of Southold, in the County of
Suffolk, New York (the "Town"), HEREBY CERTIFY that as of February 25, 2009, the date of
the Official Statement of the Town prepared and distributed in connection with the sale of the
$5,283,000 Public Improvement Serial Bonds-2009 (the "Bonds"), and at all times subsequent
thereto, up to and including the date of the delivery of the Bonds on March 19, 2009, the
attached Official Statement did not and does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.
Insofar as any statements made in said Official Statement involve matters of
opinion, estimates or statements as to matters not contained in or derived from the official
records of the Town, whether or not expressly stated, they are set forth as such and not as
representations of fact by the Town, and no representation is made that any of the estimates or
anticipated events will be realized. The said Official Statement is not to be construed as a
contract or agreement with the beneficial owners of the Bonds.
I HEREBY FURTHER CERTIFY that there has been no adverse material change
in the financial condition of the Town since the date of said Official Statement to the time of the
delivery of the Bonds on March 19, 2009.
(SEAL)
IN WITNESS WHEREOF,
I have hereunto set my hand and affixed the
corporate seal of the Town as of the 19th day of
March, 2009.
Supervisor
558534 1 032679 CERT
NEW ISSUE - SERIAL BONDS RATING: MOODY'S INVESTORS SERVICE:Aa3
In the o£inion of Hawkins Delafield & Wood LLP, Bond Counsel to the Town, under existing statutes and court decisions and assuming
continuing compliance with certain tax certi/~cations described here n fi) interest on the Bonds is exc,?uded from gross income for Federal income
tax purposes pursuant to Section 103 of the Internal Revenue Code of ~ 986, as amended (the "Code '), and(ii) interest on the Bonds is not treated
as a pr'eference item in calculating the alternative minimum tax imL>osed on individuals and corporations under the Code and is not included in
the ad~usted current earnings ~f c~rp~rati~ns f~rDurD~ses qf ca~culating the a~ternative minimum tax [n addition, in the opinion of Bond Counsel
to the Town under existing statutes, interest on the B, pnds i? exempt from personal income taxes of New York State and its political subdivisions,
including ~he Cily ofNew York. See "Tax Matters herein.
The Bonds will be designated by the Town as "qualified tax-exempt obligations "pursuant to the provision of Section 265 of the Code.
$5,283,000
TOWN OF SOUTHOLD
SUFFOLK COUNTY, NEW YORK
(the "Town")
PUBLIC IMPROVEMENT SERIAL BONDS - 2009
[BOOK-ENTRY-ONLY BONDS]
Dated: March 15, 2009 Principal Due: March 15, 2010-2030, inclusive
Interest Due: March 15, 2010, September 15, 2010 and
semi-annually thereafter on March 15 and
September 15in each year until maturity.
BOND MATURITY SCHEDULE
Amount Maturity Rate Yield Amount Maturitw Rate Yield Amount Maturity Rate Yield
$123,000 2010 3.00% 1.00% $ 215,000 2017 4.00% 3.05% $290,000 2024 4.00% 4.10%
220,000 2011 3.00 1.50 225,000 2018 4.00 3.20 300,000 2025 4-% 4.20
230,000 2012 3.00 1.75 230,000 2019 4.00 3.35 310,000 2026 4-~ 4.30
180 000 2013 3.00 2.10 240,000 2020 4.00 3.65 325,000 2027 4.25 4.40
185,000 2014 4.00 2.50 250,000 2021 4.00 3.85 330,000 2028 4.25 4.50
195,000 2015 4.00 2.70 260,000 2022 4.00 3.95 345,000 2029 4.25 4.58
205,000 2016 4.00 2.90 270,000 2023 4.00 4.00 355,000 2030 4-% 4.63
MOODY'S INVESTORS SERVICE, INC. h~ .assigne~t~a rating oaf "A, a3" !o the. Bo, n,d,s. S.ucl! ratin~g refl. e. ctsgn.,ly.the v.iew
of such rating agency, and any desired explanation at the Sl~.niticance oI s~tcn ratlnR snoma ne obtalneo tram ~vioouy s investors
Service, Inc., 7 World Trade Center at 25Cr Greenwich Street,'-New York, New York F0007, (212) 553-0300. There is no assurance
that a particular ratin~ wi I apEly for any given period of time or that it will not be lowered or withdrawn entirely if, in the judgmgnt
of the agency originally estalSlishing ttie rating, circumstances so warrant. Any downward revision or withdrawal of such rating
could have an adverse effect on the market price of the Bonds.
Security and Sources of P.ayment: The Bonds will constitute ~,eneral obligations of the Town and will contain a pledge of
its faith and credit for the punctual payment of the vrincipal of and inlerest on the Bonds and all the taxable real property within
the Town will be subject to the lew oYad valorem taxes, without limitation as to rate or amount, for such purpose.
Prior Redemption: The Bonds maturin~ on or after March 15, 2020 will be subject to redemption prior to maturity, at
the option of the Town on March 15 2019 and thereafter on any date, tn whole or in part, at par, in accordance with the terms
described here n. See ;Optional Redemption" under "The Bonds," herein.
Form and Denomination: The Bonds will be issued as reg stered bonds and, when issued, will be registered in the name
of Cede & Co. as nominee of The Depository Trust Company ("DTC"),. New York, New York which will act as the Securities
Depository for the Bonds. Individual purchases of the Bonds may be made only. in book-entry form in denominations of $5,000 or
inte ral multivles thereof, excer)t for one necessary odd denomination. Bondholders will not receive certificates representing their
ow[~rsh p nt'erests n the Bonds purchased. See"Book-Entry-Only System" under "The Bonds,' herein.
Payment: Payment of the principal of and interest on the Bonds will be made by the Town to DTC which will in turn remit
such payment to its Participants f6r subsequent distribution to the Beneficial Owners of the Bonds in accordance with standing
instruct ohs and customary practices as is now the case with municipa secur t es held for the accounts of customers in bearer form
or registered in "street name." Payment to the Beneficial Owners wil be the responsibility of the DTC Participant or Indirect
Part ~ipant and not of DTC or the Town subiect to any statutory and regulatory requirements as may be in effect from time to time.
See "Book-Entry-Only System" under ';The'Bonds, herein.
Hawk ns Delafield & Wood LLP has not participated in the preparation of this Official Statement, nor verified the accuracy,
comp eteness or fairness of the information contained tierein, and, accordingly, expresses no opinion with respect thereto.
The Bonds are offered subd'ect to the final approyi,ng op. in, ion of H. a~v. kin, s De, lafie, ld &, Wood L~£P, New,, York, New.York, B. on.d
Counsel, and certain ot/~er conattions. It is expected t~tat ctelive.ry 9J tlte annas tn ooot~-entryJorm wilt ne made tt~rougtt ttte
facilities of DTC on or about March 19, 2009 in New York, New YOrk.
Th s rev sed cover, dated March 10, 2009, supplements the Official Statement of the Town dated February 25, 2009, relating
to the ob igations described therein and here n includin~ certain information omitte, d from such _O, fficial State.ment in accord{~n~e
with Securities and Exchange Commission Rule 15c2-12 (the "Rue"), and shall constitute the Town. ,s,~finaI. O~ffigm},S?tem,ent w,~thm
the meaning of the Rule. (Jther than as set forth on this revised cover l>age and the sect on entitleo t~ona ~atmg there nave oeen
no other re-visions to the Official Statement. For a description of the Town's agreement to provide continuing disclosure as
described in the Rule, see "Disclosure Undertaking" herein.
ROOSEVELT & CROSS, INC. AND ASSOCIATES
TOWN OF SOUTHOLD
SUFFOLK COUNTY, NEW YORK
Town Hall
53095 Main Road
Southold, NY 11971
Telephone: (631) 765-4333
Fax: (631) 765-1366
TOWN BOARD
Scott A. Russell, Supervisor
Louisa P. Evans
Albert J. Krupski, Jr.
Vincent M. Orlando
William P. Ruland
Thomas H. Wickham
Elizabeth A. Neville, Town Clerk
Peter W. Harris, Superintendent of Highways
John A. Cushman II, Town Comptroller
Patricia A. Finnegan, Esq., Town Attorney
George Sullivan, Receiver of Taxes
BOND COUNSEL
Hawkins Delafield & Wood LLP
New York, New York
FINANCIAL ADVISOR
MUNISTAT SERVICES, INC.
Municipal Finance Advisory Service
12 Roosevelt Avenue
Port Jefferson Station, N.Y. 11776
(631 ) 331-8888
E-mail: info~munistat.com
Website: http://www.munistat.com
N9 dealer~ broker, salesman or other person has been authorized by the Town to give any information or to make any
representations other than those contained in this Officia Statement and if given or made, such other information or
representations must not be relied upon as having been authorized by the Town This Offic a Statement does not constitute an
orrer to sell or the solicitation of an offer to buy, nor shall there be any sa e of the Bonds by any [~erson in any jurisdiction in which
it is unlawful for suchav, erson to make such offer, solicitation or sale. The information set f6rt~ herein has been obtained by the
Town from .sources wfii:ch are believed to be reliable but it is not guaranteed as to accuracy or completeness. The information
and expressions ofopimon herein are subject to change without notice and neither the del very of th s Official Statement nor any
s~le m ,ade ,h ere,under.shall, under any circumstances, create any implication that there has been no change in the affairs of the Town
smce the aate nereo~.
TABLE OF CONTENTS
Page
THE BONDS ............................................................................... 1
Description of the Bonds .................................................................. 1
Optional Redemption ..................................................................... 1
Book-entry-only System ................................................................. 1
Cert ficated Bonds .................................................................... i.. 3
Authorization and Pumose ................................................................. ~ 3
Securi.ty and Source o~: Payment ............................................................ 3
Remedies Upon Default ................................................................... 3
THE TOWN ............................................................................... 4
General Information ...................................................................... 4
Government ............................................................................ 4
Employees ............................................................................. 5
ECONOMIC AND DEMOGRAPHIC INFORMATION ........................................... 5
Population Characteristics ................................................................. 5
Median Income of Families ................................................................ 5
Unemployment Rate Statistics .............................................................. 6
Selected Listing of Larger Employers ........................................................ 6
INDEBTEDNESS OF THE TOWN ............................................................ 6
Constitutional Requirements ............................................................... 6
Statutory Procedure ...................................................................... 7
Computation of Debt Limit and Calculation of Net Debt Contracting Margin ......................... 8
Tren~ of Town Indebtedness ............................................................... 8
Details of Short-Term Indebtedness Outstanding ............................................... 9
Debt Service Requirements - Outstanding Bonds ............................................... 9
Calculation of Estimated Overlapping and Underlying Indebtedness ............................... 10
Authorized But Unissued Items ............................................................ 10
Capital Program ........................................................................ 10
Communi~'Pre~Preservation Fund ............................................................ 1 t
Landfill Closure and Postclosure Care Costs .................................................. 11
FINANCES OF THE TOWN ................................................................ 11
Financial Statements and Accounting Procedures .............................................. 11
Fund Structure and Accounts ......................................................... 11
Basis of Accounting ................................................................ 12
Investment Policy ...................................................................... 12
Budgeta[y Procedures ................................................................... 12
Financial Operations .................................................................... 13
Revenues ............................................................................. 13
Real Property Taxes ................................................................ 13
State Aid ......................................................................... 13
Expenditures .......................................................................... 13
Pension Systems ....................................................................... 13
Contributions to the Retirement Systems ..................................................... 14
Other Post Employment Benefits ........................................................... 14
REAL PROPERTY TAX INFORMATION .................................................... 15
Real Property Taxes ..................................................................... 15
Tax Levy and Collection Record ........................................................... 15
Tax Collection Procedure ................................................................ 15
Tax Rates ............................................................................. t5
Large Taxable Properties ................................................................. 16
LITIGATION ............................................................................. 16
BONDHOLDER RISKS AND MARKET FACTORS AFFECTING FINANCINGS
OF THE STATE AND MUNICIPALITIES OF THE STATE ..................................... 17
TABLE OF CONTENTS
(Continued)
Page
TAX MATTERS .......
Certain Ongoing Federal Tax Requirements and Certifications ................................ 18
Certain Collateral Federal Tax Consequences ............................................... 18
Original Issue Discount
Bond Premium .................................................................. 18
Miscellaneous ......................................................................... 19
DOCUMENTS ACCOMPANYING DELIVERY OF THE BONDS ................................. 19
Absence of Litigation .................................................................... 19
Legal Matters .................................................................. 19
Closing Certificates ....... ... i i i.. 20
DISCLOSURE UNDERTAKING ............................................................. 20
BOND RATING
FINANCIAL ADVISOR .................................................................... 21
ADDITIONAL INFORMATION ............................................................. 21
APPENDIX A: FINANCIAL INFORMATION
APPENDIX B: FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2007
ii
OFFICIAL STATEMENT
$5,283,000
TOWN OF SOUTHOLD
SUFFOLK COUNTY, NEW YORK
PUBLIC IMPROVEMENT SERIAL BONDS - 2009
[BOOK-ENTRY-ONLY BONDSI
This Official Statement and the appendices hereto presents certain information relating to the Town of
Southold, in the County of Suffolk, in the Slate of New York (the "Town," "County" and "State,*' respectively) in
connection with the sale of $5,283,000 Public Improvement Serial Bonds - 2009 (the "Bonds") of the Town.
Allquotations from and summaries and explanations of provisions of the Constitution and Laws of the State
and acts andproceedings of the Town containedherein do not purport to be complete and are qualified in their
entirety by reference to the official compilation thereof and all references to the Bonds and the proceedings of the
Town relating thereto are qualified in their entirety by reference to the definitive form of the Bonds and such
proceedings.
THE BONDS
Description of the Bonds
Thc Bonds will bc dated March 15, 2009, and will mature on March 15, in each of the years 2010 to 2030,
inclusive, in the principal amounts as set forth on the cover page hereof.
The Bonds will be issued in fully registered form and when issued will be registered in the name of Cede &
Co. as nominee of The Depository Trust Company, New York, New York ("DTC"). DTC will act as Securities
Depository for thc Bonds. Individual purchases of the Bonds may be made in book-entry form only, in denominations
of $5,000 or integral multiples thereof, except for one necessary odd denomination. Purchasers will not receive
cartificates representing their interest in the Bonds.
Interest on the Bonds will be payable March 15, 2010, September 15, 2010 and semi-annually thereafter on
March 15 and September 15 in each year until maturity. Principal and interest will be paid by the Town to the
Securitie~ Depository, which will in turn remit such principal and interest to its Participants, for subsequent
distribution to the Beneficial Owners of the Bonds, as described herein. The Bonds may be transferred in the manner
described on the Bonds and as referenced in certain proceedings of the Town referred to therein.
The Record Date of the Bonds will be the last business day of the month preceding each interest payment
date.
Optional Rcdcmption
The Bonds maturing on or before March 15, 2019 will not be subject to redemptionprior to maturity. The
Bonds maturing on or after March 15, 2020 will be subject to redemption prior to maturity, at the option of the Town,
on March 15, 2019 and thereafter on any date, in whole or in part, and if in pan, in any order of their maturity and
in any amount within a maturity (selected by lot within a maturity), at par, plus accrued interest to the date of
redemption.
The Bonds shall be redeemable prior to maturity upon thegiving of notice which identifies the Bonds to be
redeemed, by mailing such notice to the registered holders thereof at their respective addresses as shown upon the
registration books of the Fiscal Agent at least 30 days prior to the date set for any such redemption. If notice of
redemption shall have been given as aforesaid, the Bonds so called for redemption shall become due and payable at
the applicable redemption price on the redemption date designated in such notice, and interest on the Bonds shall
cease to accrue from and after such redemption date.
Book-entry-only System
DTC will act as securities depository for the Bonds (the "Bonds"). The Bonds will be issued as fully-
registered Bonds registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be
requested by an authorized representative of DTC. One fully-registered Bond certificate will be issued for each
maturity of the Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC.
DTC the world's largest depository, is a limited-pur0ose trust comp*mX organized under the New York
Banking Law a "banking orgahization" within the meaning oft'he New York [lanking Law a member of the Federal
Reserve System, a "clearing corporation" within the meaning of the New York Un[form Commercial Code and a
"c ear n~ a~encv" re~ stereo'[pursuant to the provisions of Section 17A of the Securities Exchange Act of 1932. DTC
holds add ~rovldes ~sset set:vicing for over 2 million issues of U.S. and non-U.S, equi~ issues, corpor,a, te and
municipal iJ,,ebt issues, and money market instruments from over 85 countries that DTC s p_articipants ( Direct
Partici.13ants ) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales
and other securities transactions in deposited securities, tbSrough electronic computerized book-entry transfers and
pledges between Direct Participants-accounts. This eliminates the need for phy-sical movement of securities
certificates. Direct Participants include both U.S. and non-U.S, securities brokers *md i:tealers, banks trust companies,
clearing corporations, andcertain other organizations. DTC is a wholly-owned subsidiary of The ~epository Trust
& Clearing Corporation ("DTCC"). DTCC in turn, is owned by a number of Direct Participants of DTC and
Members of the National Securities Clearing Corporation Government Securities Clearing Corporation MBS
Clearing Corporation, and Emerging Markets Clearing Corporation, (NSCC, GSCC, MBSCC, and EMCC, also
subsidiaries of DTCC) as well as by the New York Stock Exqhange, Inc., the American Stock Exchange LLC, and
the Nat onal Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as both
U.S. and non-U.S, securities brokers and dealers, banks~ trust companies, and clearing corporations that clear through
or maintain a custodial relationship with a Direct Participant, either directly_ or ind~rect[.y ("Indirect ParticipantsT).
DTC has Standard & Poor's highest rating: AAA. The DTC Rules applical61e to its Participants are on file with the
Securities and Exchange Commission. M~re information about DTC can be found at www.dtcc.com.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will
receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond
("Beneficial Owner")is in turn to be recorded on the Direct *md Indirect Participants' records. Beneficial Owners will
hot receive written c6nfirmation from DTC of their purchase. Beneficial Owners are, however expected to receive
written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the
Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers ot:ownership
nterests n the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting
on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests
in Bonds, except in the event that use of the book-entry system for the Bonds is discontinued.
To fac!litate subse~tuent transfers, all Bonds deposited by_ Direct Participants with DTC are registered in the
name of DTC s parmersh~p nominee Cede & Co. or such other name as may be requested by an authorized
rel~resentative of'DTC. The deposit oi~ Bonds with ~STC and their registration in the name of Cede & Co. or such
other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial
Owners of the Bonds' DTC's records reflect only the identity of the Direct Participants to wl%se accounts such Bonds
are credited which ~nay or may not be the Be~neficial Owners. The Direct *md Indirect Participants will remain
responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by_ DTC to Direct Participants, by Direct Participants to
Ind rect Participants, and by Direct Participants and Indirect Participants to Beneficml Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed,
DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be
redeem6d.
Payments on the Bonds will be made to Cede & Co.z_t?r such other nominee as may be requested by an
authorized representative ofDTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of
funds and corresponding ,detail information from the Town, on the payable date in accordance with their respective
holdings shown on DTC s records Payments by Participants to Beneficial Owners will be governed by standing
instructions and customary, practices as is the case with bonds held for the accounts of customers in bearer form or
registered in "street name, and will be the responsibility of such Participant and not of DTC nor its nominee, or the
Town, subject to *my statutory or regulatory requirements as may be in effect from time to time. Payments to Cede
& Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of
the Town, disbursement of such payments to Direct Participants..w. il.l be the .responsibili.ty of DTC~ and disbursement
of such payments to the Benefimal Owners will be the responslbd~ty of Direct and Indtrect Partm~pants.
DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving
reasonable notice to the Town.lJnder such circumstances, in the event that a successor depository is not ol>taineff,
Bond certificates are required to be printed *md delivered.
The Town may decide to discontinue use of the sy-.st, em of boo, k-en, try,.h'*msf,ers through DTC (or a successor
securities depository). In that event, Bond certificates wdl oe printea *ma aeliverea.
The information in this section concerning DTC and DTC's book-entry system has been obtained from
sources that the Town believes to be reliable, but ~e Town takes no responsibility for the accuracy thereof.
THE TOWN WILL NOT HAVE ANY RESPONSIBILITY OR OBLIGATION TO PARTI~AI%~NiTRS~TyO
INDIRECT PARTICIPANTS OR TO ANY BENEFICIAL OWNER WITH RESPECT TO(I) THE CU C
OF ANY RECORDS MAINTAINED BY DTC, ANY PARTICIPANT, OR ANY INDIRECT PARTICIPANT; (II)
THE PAYMENTS BY DTC OR ANY PARTICIPANT OR INDIRECT PARTICIPANT OF ANY AMOUNT WITH
RESPECT TO THE PRINCIPAL OF, OR PREMIUM, IF ANY, OR INTEREST ON THE BONDS; (III) ANY
NOTICE WHICH IS PERMITTED OR REQUIRED TO BE GIVEN TO BONDHOLDERS; (IV) THE SELECTION
BY DTC OR ANY PARTICIPANT OR INDIRECT PARTICIPANT OF ANY PERSON TO RECEIVE PAYMENT
IN THE EVENT OF A PARTIAL REDEMPTION OF THE BONDS; OR (V) ANY CONSENT GIVEN OR OTHER
ACTION TAKEN BY DTC AS BONDOWNER.
Certificated Bonds
DTC may discontinue providing its services with respect to the Bonds at any time by giving notice to the
Town and discharging its resvonsibil t es with respect thereto under applicable law, or the Town may terminate its
participation in the system of'book-entgy-only transfers through DTC at any time. In the event that such book-entry-
only system is discontinued, the following provisions will apply: Ttie Bonds will be in registered form in
denominations of $5,000, or integral multiples thereof, except for one necessary odd denomination. Principal of and
!nterest o.n.the.Bo~nds when due will be payable at the principal corporate trust office of a bank or trust company to
oe namea ny the lown as the fiscal agent. Certificated Bonds may be transferred or exchanged at no cost to the
owner of such Bonds at any time prior to maturity at the corporate trust office of the fiscal agent for Bonds oftbe
s a~m~e o,r ~nypther ~a. uothorized denomination o~denominations in the same aggregate principal amount upon the terms
set forth in the certmcate of the Town Supervisor authorizing the sale oftbeBonds and fixing the details thereof and
in accordance with the Local Finance Law.
Authorization and Purpose
The Bonds are being issued I~Ursuant to the Constitution and statutes of the State of New York, including
among others, the Town Law GeneralMunicipal Law and the Local Finance Law, and various bond resolutions dul3~
adopted by the Town Boar~ on their respective dates, authorizing the issuance of serial bonds for three capital
projects in and for the Town.
Such projects, and the respective principal amounts of Bonds to be issued for each, are as follows:
Date Amount to
Authorized Purpose be issued
02-27-07 Open Space Preservation ...................................... $ 5,000,000~a
02-27-07 Air Vacuum Drain Cleaner ..................................... 166,000~
09-25-07 Fishers Island Sewer District .................................... 117,000v
Total ................................. $ 5,283,000
a. Will provide original funds. On February 12, 2009, the Town Board adopted the authorizing resolution as required by Town Law Section 64e.
See "Community Preservation Fund" herein.
b. Will redeem outstanding bond anticipation notes.
For further information regardingbond authorizations of the Town for capital purposes and other matters
relating thereto see "indebtedness of the Town".
Security and Source of Payment
Each Bond when duly issued and paid for will constitute a contract between the Town and the owner thereof.
The Bonds will be general obligations of the Town and will contain a pledge of the faith and credit of the
Town for the payment of t~e principal thereof and the interest thereon. For the payment of such principal and
interest, the Town has the power and statutory authority to levy ad valorem taxes on all the taxable real property
within the Town without limitation as to rate or amount. Under Article VIii of the State Constitution, theTown is
required to pledge its faith and credit for the payment of the principal of and interest on the Bonds and the State
L. egislaoture is specifically precluded from restricting the power of the Town to levy taxes on taxable real estate
thereoL
Remedies Upon Default
Under current law, provision is made for contract creditors (including the Bondholders) of the Town to
enforce payments upon such contracts, if necessary, through court action, although the present statute limits interest
on the amount adjudged due to creditors to nine per centum per annum from the date due to the date of payment. As
a general rule, property and funds of a municipal corporation serving the public welfare and interest have not been
judicially subjected to execution or attachment to' satisfy a judgment, although judicial mandates to officials to
appropriate and pay judgments out of current funds or the proceeds of a tax levy have been issued.
Remedies for enforcement of payment are not expressly included in the Town's contract with holders of its
bonds and notes, although any permanent repeal by statute or constitutional amendment of a Bondholder's remedial
right to judicial enforcement o~the contract should, in the opinion of Bond Counsel, be held unconstitutional.
The State has consented that any municipality in the State may file a petition with any United States district
court or court of bankruptcy under any provision of the laws of the United States, now or hereafter in effect, for the
composition or adjustment of municipal indebtedness. Subject to such consent., und.er t. he U~ n,ited States Constitution,
Congress has jurisdiction over such matters and has enacted amendments to me ex~stmg reaeral bankruptcy statute,
generally to tile effect and with the purpose of affording municipal corporations., unde. r. ce .r~in circumstances, with
easier access to judicially approved adjustment of debts, including judicial control over ~dent~fiable and unidentifiable
creditors.
In recent times, certain events and legislation affecting remedies on default have resulted in litigatiola. While
courts of final jurisdiction have upheld and sustained the rights of bondholders, such courts might hold that future
events, including financial crises as they may occur in the State and in municipalities of the State, require the exercise
by the State of its emergency police powers to assure the continuation of essential services.
No principal or interest payments on Town indebtedness are past due. The Town has never defaulted in the
payment of the pnncipal of and interest on any indebtedness.
THE TOWN
There follows in this Official Statement a brief description of the Town, together with certain information
concerning its economy and governmental organization, its indebtedness, current major revenue sources and
expenditures and general and specific funds.
General Information
The Town, with a land area of 54.5 square miles, is located in eastern Suffolk County on the north fork of
Long Island. Settlement took place in 1640. The Village of Greenport is located wholly within the Town. The Town
also includes the area of Fishers Island which is located approximately twelve miles east of the mainland. Fishers
Island is accessible only by water or air, with ferry service operating between the Island and New London,
Connecticut.
The Town isprimarily a rural resort area with substantial shopping facilities available at Greenpo..rt, at various
shopping centers within the Town, and at Riverheadjust to the west. Some commercial services are avmlable within
the Town in the hamlets of Southold, Cutchogue and Mattituck.
Agriculture has been a major industry in the Town since its origins. In recent years, farm crops have
gradually evolved from basic production to nursery crops including shrubs, sod, potted plants and other ornamentals.
3. substantial portion of these products are shipped by feny across Long Island Sound for distr!bution ~roughout
New England. A number of vineyards have been established and wine-making is ~ i. mpo~,unt i~n~lus .t~y. ~F~shing and
fish processing are now ~rowing industries due to improved transportation facd~t~es. ~ne ~own is mso a major
summer resort area, utilizang bays, inlets and Long Island and Block Island Sounds.
The main highways in the Town are New York State Route 25 and the North Road. Rail transportation is
provided by the Long Island Rail Road with stations at Mattituck, Southold and Greenport. Ferry service is also
available between Orient Point, east of Greenport, and New London, Connecticut as well as from Greenport to She lter
Island.
Electric service is provided by the Long Island Power Authority; gas service is l~rovided by Keyspan Energy
Corporation. Fire protection is the responsibibty of volunteer fire and fire protection districts. The Town provides
its own police protection. In the Village of Greenport, electric service and fire protection are provided by the Village.
Government
Subject to theprovisions of the State Constitution, the Town operates pursuant to the Town Law, the General
Municipal Law, the Local Finance Law, other laws generally applicable to the Town, and any special laws
specifically applicable to the Town. Under such laws, there is no authority for the Town to have ach. arter, but
pursuant to theTown Law and other laws generally applicable to home rule, the Town may from time to ttme adopt
local laws which do not conflict with existing laws as enacted by the State.
The legislative power of the Town is vested in the Town Board, which consists of five members, elected for
a term of four years, and the Supervisor, who is the chief executive officer of the Town, elected for a term of four
years. Such terms are staggered such that two or three councilmen are elected every two years. All the Town Board
members are elected at large and there is no limitation to the number of terms each may serve.
Six independently governed school districts are located wholly or partially within the To_w,_n, which rely on
their own taxing powers granted by the State to raise revenues. The schooIdistricts use the Town s assessment roll
as their basis for taxation of property located within the Town.
4
Employees
The Town provides services through approximately 211 full-time and 66 part-time employees, some of whom
are represented by organized labor.
The following table presents the number of employees~ represented by organized labor, name of union and
contract expiration dates.
Name of Union
Civil Service Employees Assoc ........................
Police Benevolent Assoc.
i~ePrOximate Date Contract
mbership Expires
169 12-31-10
50 12-31-09
ECONOMIC AND DEMOGRAPHIC INFORMATION
Population Characteristics
The Town has had a population trend, as compared to the County and the State, as indicated below:
Town of Suffolk New York
Year Southold County State
1970 16,804 1,127,030
1980 .....................................
................................ ..... 19,172 1,284,231
1990 19,836 1,321,977
2000 20,599 1,419,369
2007 22,852 1,504,947
Source: U.S. Bureau of the Census, Long Island Power Authority, New York State Department of Labor.
Median Income of Families
1980 1990
Town $21,013 $43,082
County 24,194 53,247
State 20,180 39,741
2000
$61,t08
72,112
51,691
18,241,391
17,557,288
17,990,455
18,976,457
19,297,729
Source: U.S. Department of Coramerce, Bureau of the Census.
Per Capita Money Income
1980 .1990 2000
Sollrce2
Town $8,258 $19,037 $ 27,619
County 7,576 18,481 26,577
State 7,496 16,501 23,389
u.s. Department of Commerce, Bureau of the Census.
Unemployment Rate Statistics
Unemployment statistics are not available for the Town as such. The smallest area for which such statistics
are available (whmh includes the Town) is the County of Suffolk. The information set forth below with respect to
such County is included for information p. urposes only. It should not be implied from the inclusion of such data in
this Statement that the Town is necessardy representative of the County or vice versa.
Suffolk New York
County State
Annual Averages:
2004 .............................
2005 .............................
2006 .............................
2007 .............................
2008 .............................
4.5% 5.9%
4.2 5.0
3.9 4.5
3.8 4.5
5.0 5.4
Source: Department of Labor, State of New York
Selected Listing of Larger Employers
Name
Approx. No.
Type of Employees
Hospital 350
U.S. Govt. Facility 310
Public School 295
Local Government 277
Life Care Community 206
Public School 181
Nursing Home 150
Public School 110
Eastern Long Island Hospital .......................
Plum Island ADC ................................
Mattituck-Cutchogue UFSD .......................
Town of Southold- ...............................
Peconic Landing .................................
Southold UFSD .................................
San Simeon by the Sound .........................
Greenport UFSD ................................
INDEBTEDNESS OF THE TOWN
Constitutional Requirements
The State Constitution limits the power of the Town (as well as other municipalities and school districts of
the State) to issue obligations and contract indebtedness. Such constitutional limitations include the following, in
summary form, and are generally applicable to the Town and the Bonds:
Purpose and Pledge. Subject to certain exceptions, the Town shall not give or loan any money or property
to or in aid of any individual or private corporation or private undertaking or give or loan its credit to or in md of any
of the foregoing or any public corporation.'
The Town may contract indebtedness only for a Town purpose and shall pledge its faith and credit for the
payment of principal of and interest thereon.
Payment and Maturity. Except for certain short-term indebtedness contracted in anticipation of taxes or
to be paid within three fiscal year periods, indebtedness shall be paid in annual installments commencing no later than
two years after the date such indebtedness shall have been contracted and ending no later than the expiration of the
period of probable usefulness of the object or purpose determined by statute or in the alternative the weighted
average period of probable usefulness of the several objects or purposes for which it is contracted. No installment
may be more than fifty per centum in excess of the smallest prior installment, unless the Town Board provides for
substantially level or declining debt service in the manner prescribed by the State Legislature. The Town is required
to provide an annual appropriation for the payment of interest due duringthe year on its indebtedness and for the
amounts required in such year for the amortization and redemption of its~oonds and notes.
Debt Limit. Pursuant to the Local Finance Law, the Town has the Power to contract indebtedness for any
Townpurpose authorized by the Legislature of the Stateprovided the aggregate principal amount thereof shall not
exceedseven percentum of the average five-year full valuation of the taxable real estate located in the Town and
subject to certain enumerated exclusions and deductions such as debt contracted to provide water, self-liquidating
factlities and cash or appropriations for current debt service. The Constitutional method for determining full valuation
consists of dividing the total assessed valuation of taxable real estate for a particular assessment roll by,, the fi,n,,a,l
equalization ratio established for such assessment roll bythe State Office of Real Property Services (the 'ORPS ).
The State Legislature is required to prescribe the manner by which such ratio shall be determined. Average full
6
valuation is determined by taking the sum of the full valuations of the last five completed assessment rolls and
dividing such sum by five.
Statutory Procedure
In general, the State Legislature has authorized the power and procedure for the Town to borrow and incur
indebtedness by the enactment oftbe Local Finance Law subject of course to the constitutional provisions set forth
above. The power to spend money, however, generally derives from other law, including the Town Law and General
Municipal Law of the State.
Pursuant to the Local Finance Law, the Town authorizes the incurrenee of indebtedness, including bonds and
bond anticipation notes issued in anticipation of such bonds by the adoption of a resolution, approved by at least two-
thirds of the members of the Town Board, which is the finance board of the Town. Certain bond resolutions may be
subject to permissive referendum, or may be submitted for approval to the Town voters at the discretion of the Town
Board. If the resolution is submitted to the Town voters, only a three-fifths vote of the Town Board is required.
The Local Finance Law also provides a twenty-day statute of limitations after publication of a bond
resolution, which in effect estops thereafter legal challenges to the validity ofobli§ations authorized by such bond
resolution except for alleged constitutional violations. The Town has complied w~th all publication reqirements.
Each bond resolution usually authorizes the construction, acquisition or installation of the object or purpose
to be financed sets forth the l~lan of financing and specifies the maximum maturity of the bonds subject to the legal
(Constitution, Local Finance Law and case law) restrictions relating to the period of probable usefulness with respect
thereto.
Each bond resolution also authorizes the issuance of bond anticipation notes l~rior to the sale of serial bonds.
Statutory law in New York permits notes to be renewed each year, provided annual principal reductions are made
and provided that such renewals generally do not extend five years beyond the original date of borrowing. However,
notes issued in anticipation of the sale of serial bonds for assessable improvements are not subject to such five year
limit and may be renewed subject to annual principal reductions for the entire period of probable usefulness of the
purpose for which such notes were originally Issued. (See "Payment and Maturity" under "Constitutional
Requirements," and "Details of Short-Term Indebtedness Outstanding.")
In general, the Local Finance Law contains similar provisions providing the Town with power to issue
general obligation revenue and tax anticipation notes and general obligation budget and capital notes.
7
Computation of Debt Limit and Calculation of Net Debt Contracting Margin
(As of February 25, 2009)
Fiscal Year State
Ending Assessed Equalization Full
December 31: Valuation Rate Valuation
2005 ............................... $104,228,885
2006 ............................... 105,502,965
2007 ............................... 106,950,027
2008 ............................... 108,292,749
2009 ............................... 108,991,562
1.25% $ 8,338,310,800
1.13 9,336,545,575
1.04 10,283,656,442
0.95 11,399,236,736
1.05 10,380,148,761
Total Five Year Full Valuation ................................................ $49,737,898,314
Average Five Year Full Valuation ............................................. 9,947,579,662
Debt Eimit - 7% of Average Full Valuation ...................................... 696,330,576
Inclusions:
Outstanding Bonds:
General?urposes ..................................................... 31,560,000a
Other ........................................................... -0-
Sub-Total ...........................................................
Bond Anticipation Notes ....................................................
Total Inclusions ........................................................
31,560,000
6,579,100
38,139,100
Exclusions:
Appropriations .........................................................
Other Exclusions ........................................................
Total Exclusions ........................................................
Total Net Indebtedness Before Issuing the Bonds .................................
The Bonds ...........................................................
Less: BANs to be paid from bond proceeds ......................................
Net Effect of Issuing Bonds ..................................................
Total Net Indebtedness After Issuing the Bonds ..................................
Net Debt Contracting Margin After Issuing the Bonds .............................
Percent of Debt Limit Exhausted ...............................................
2,398,300
2,398,300
35,740,800
5,283,000
40,740,800
$655,589,776
5.80%
a. Includes $ t 7,141,600 issued for the preservation of open space. See "Community Preservation Fund" herein.
Trend of Town Indebtedness
The following table represents the outstanding indebtedness of the Town at the end of the last five preceding
fiscal years.
Fiscal Year Ending December 31:
2004 2005 2006 2007 2008
Debt Outstanding End of Year:
Bonds .................. $6,515,000
Bond Anticipation Notes ... 12,625,600
Total Outstanding Debt ........ $19,140,600
$12,299,098 $1t,349,098
11,720,000 8,244,000
$24,019,098 $19,593,098
$25,020,000 $32,175,000
6,224,000 6,579,100
$31,244,000 $38,754,100
Details of Short-Term Indebtedness Outstanding
Bond Anticipation Notes
Maturity Purpose Amount
04-17-09 Various Capital Projects ..................................... $ 799,300a~
09-04-09 Various Capital Projects... 4,280,000"
09-04-09 Various Capital Projects... 299,800~
06-05-09 Fishers Island Ferry District 1,200,000'
Total ................................................ $ 6,579,100
a. Proceeds of the Bonds, in the amount of $283,000 will be used to redeem such notes. The balance will be funded from the proceeds of renewal
notes and available funds.
b. To be funded from the proceeds of renewals notes and from available funds.
Debt Service Requirements - Outstanding Bonds
(As of February 25, 2009)
Fiscal Year
Ending
December 31: Principal
2009 ....................... $2,075,000
2010 ....................... 1,900,000
2011 ....................... 1,925,000
2012 ....................... 1,890,000
2013 ....................... 1,775,000
2014 ....................... 1,790,000
2015 ....................... 1,810,000
2016 ....................... 1,735,000
2017 ....................... 1,795,000
2018 ....................... 1,835,000
2019 ....................... 1,395,000
2020 ....................... 1,275,000
2021 ....................... 1,300,000
2022 ....................... 1,100,000
2023 ....................... 1,150,000
2024 .. ...................... 1,175,000
2025 ....................... 1,175,000
2026 ....................... 1,000,000
2027 ....................... 1,000,000
2028 ....................... 1,025,000
2029 ....................... 1,025,000
2030 ........... ~ ........... 1,025,000
To~ls ................... $32,175,000
Interest
$1,242,520
1,168,316
1,097,263
1,024,226
955,163
887,302
817,691
749,758
681,287
610,493
546,114
491,006
438,219
384,53l
337,781
289,469
240,375
194,438
151,938
108,907
65,344
21,782
$12,503,92}
Total
$3,317,520
3,068,316
3,022,263
2,914,226
2,730,163
2,677,302
2,627,691
2,484,758
2,476,287
2,445,493
1,941,114
1,766,006
1,738,219
1,484,531
1,487,781
1,464,469
1,415,375
1,194,438
1,151,938
1,133,907
1,090,344
1,046,782
$44,678,923
Calculation of Estimated Overlapping and Underlying Indebtedness
Overlapping Date of Percentage
Units Report Applicable
County of Suffolk ..................... 12-11-08 3.71%
Village of Greenport ................... 11-24-08 100.00
School Districts:
Fishers Island ............. 06-30-08 100.00
Greenport ................. 06-30-08 100.00
Mattituck-Cutchogue ....... 11-14-08 98.49
New Suffolk Common ...... 06-30-06 100.00
Oyster Ponds .............. 09-01-08 100.00
Southold ................. 12-22-08 100.00
Fire Districts:
Cutchogue ................. 12-31-07 100.00
East Marion l 2-31-07 100.00
Fishers Island .............. 12-31-07 100.00
Mattituck ................. 12-31-07 100.00
Orient .................... 12-31-07 100.00
Southold .................. 12-31-07 100.00
Annual Financial Reports on file with the Office
Statements.
Applicable APPlicable
Total Net
Indebtedness Indebtedness
$41,794,819 $35,265,017
9,329,200 8,574,200
355,000 355,000
0 0
32,688,831 29,910,280
0 0
0 0
18,410,68l 18,410,681
0 ¸0
144,000 144,000
0 0
1,766,852 1,766,852
25,000 25,000
1,400~000 1,400,000
$105,914,383 $ 95,851,030
of the State Comptroller, or more recently published Official
Authorized But Unissued Items
The following Bonds are authorized but unissued:
Date
Authorized Purpose
Amount
02-25-03
02-27-07
08-28-07
Mattituck Inlet Shore Erosion Study ................................. $ 82,750
Open Space Preservation: Non-Agricultural Land ...................... 15,000,000a
Open Space Preservation: Agricultural Lands ......................... 4,000,000
Total .................................
$19,082,750
a. To be funded in part by the issuance of the Bonds.
Capital Program
The Town annually adopts a three year Capital Improvement Plan. Projects may be funded by State and
Federal aid reserves, proceeds of obligations, property taxes or a combination tfiereof. A summary of the Capital
Budget for 2009-2011 is set forth be ow:
Department 2009 2010 2011
General Town .................................... $ 234,400
Highway Dept .................................... 1,280,000
Solid Waste District ............................... 135,000
Wastewater Disposal District ....................... 750,000
$ 508,123 $ 179,750
$ 2,399,400 $ 508,123 $179,750
Sources
Appropriations ...................................
Grants .......................................
Town Debt .................................
Total ...........................................
$ 38,400 $ 160,495 $ 39,750
196,000
2,165,000 347,628 140,000
$ 2,399,400 $ 508,123 $179,750
10
Community Preservation Fund
In 1998, the voters of thc five East End towns (East Hampton, Riverhead, Shelter Island, Southampton, and
Southotd) approved a referendum creating the Community Preservation Fund, (the "Fund") which is a conservation
program to preserve open space and farmland in the five towns. The fund is financed by a 2% tax on real estate sales.
This is a one-time tax that the buyer of real estate is required to pay when purchasing a new or used home or vacant
property. In 2006, the voters in all five towns approved a referendum to extend the collection of the tax through
2030.
The Fund facilitates a voluntary program whereby landowners can sell their land or the development rights
to the land to the respective towns at fair market value. The towns may issue bonds for purchases to be paid back
through the life of thc Fund with the 9% tax revenues. When a town £mances an acquisition through the issuance
of bonds, Section 64e of Town Law requires the preparation of a report by or on behalf of the Town Supervisor which
demonstrates how such indebtedness will be repaidby the Fund; including an estimate of projected revenues o£the
Fund during the period of indebtedness, an accounting of all other indebtedness incurred against the Fund to be repaid
for the same period, and a finding that there will be sufficient revenue to repay such indebtedness in its entirety trom
the Fund.
As of the date of this Official Statement, there are $17,141,600 in bonds outstanding, the debt service on
which is expected to be paid by the Fund.
Landfill Closure and Postclosure Care Costs
The Town owns a landfill on a site in the unincorporated area of Cutchogue, commonly known as the
Cutchogue Landfill. The Town ceased accepting waste at its Cutchogue Landfill as of October 8, 1993. Placement
of the final cover, referred to as capping, on the landfill was completed in November 2003. In addition to placement
of the final cover on the landfill, state and federal regulations presently require thc Town to perform certain
maintenance and monitoring functions at the site for up to thirty years. The Town has and will continue to comply
with said requirements. The ongoing post closure costs are estimated to be between $25,000 and $30,000 per year
from 2008 through 2010. The Town paid $26,610 for such costs in 2008 and will continue to pay these costs in the
future.
Actual costs associated with the capping totaled $7,681,720. Financing for closure activities was provided
in part through a grant from the New York State Department of Environmental Conservation in the amount of
$2,000,000. 'l'he balance was provided through a State subsidized loan received in July, 2004 from the New York
State Environmental Facilities Corporation. Costs associated with postclosure care will be paid from charges to
future users of the collection facility and site and future tax revenue.
FINANCES OF THE TOWN
Financial Statements and Accounting Procedures
The Town maintains its financial records in accordance with the Uniform System of Accounts for Towns
prescribed by the State Comptroller. The financial records of the Town are audited by tndependent accountants. The
last such audit made available for public inspection covers the fiscal year ended December 31, 2007. In addition,
the financial affairs of the Town are subject to periodic compliance review by the Office of the State Comptroller
to ascertain whether the Town has complied with the requirements of various State and Federal statutes.
In June, 1999, the Governmental Accounting Standards Board ("GASB") issued Statement 34,,, "Basic
Financial Statements and Management's Discussions and Analysis for State and Local Governments'. GASB
required the Town to implement this standard for the fiscal year ending Deee.mber 31:2003 an~d the Town has.
complied with such requirements. This Statement established new financial reporting reqmrements tor stg. te and lo.ca~
governments throughout the United States. It required new information and restructuring of much of the m~.forma, tlon
that governments have presented in the past. Comparability with reports issued in all prior years was anectea.
Fund Structure and Accounts
The Town utilizes fund accounting to record and report its various service activities. A fund repr~ents bo. th
a legal and an accounting entity which segregates the transactions of specific programs in accordance w~th special
regulations, restrictions or limitations.
There are three basic fund Woes: (1) governmental funds that are used to account for basic services and
capital projects (2) proprietary funds'that account for operations of a commercial nature; and, (3) fiduciary funrd~
that account for assets held in a trustee capacity. Account groups, which do not represent funds, are used to recor
fixed assets and long-term obligations that are not accounted for in a specific fund.
11
The Town presently maintains the following governmental funds General Fund, Highway Fund and Special
Districts Funds, and the Capital Projects Fund. Fiduciary funds consist of a Trust and Agency Fund. There are no
proprietary funds. Account groups are maintained for fixed assets and long-term debt.
Basis of Accounting
The Town's govemmental funds are accounted for on a modified accrual basis of accounting. Under the
modified accrual basis, revenues are recognized when they become susceptible to accrual - that is, when the,, ,, , . , . . . y become
measurable and avadable to finance expenditures to the current period Revenues are susceptible to accrual
nc ude real property taxes, intergovernmental revenues (State and Federal aid) and operating transfers.
Expenditures are generally recognized under the modified accrual basis of accounting, that is when the
reJ~te, d.fund liab. ilit~ is, incu, rred. An exception to this general rule is unmatured interest on general long-term debt
wnlcn 1S recognlzeu wnen aue.
Investment Policy
Pursuant to State law including Sections 10 and 11 of the General Municinal Law (the "GML"~ thc Tc~wn
is generally permitted to deposit moneys in banks or trust companies located and ~uthoriz~d to do bus]~'~; i'nVt'l~;
State. All such deposits, including special time deposit accounts and certificates of deposit, in excess of the amount
insured under the Federal Deposit Insurance Act are required to be secured in accordance with the provisions of and
subject to the limitations of Section I0 of the GML.
The Town may also temporarily invest moneys in: (1) obligations of the United States of America; (2)
obligations ~uaranteed by agencies of the United States of America w[~ere the payment of principal and interest are
guaranteed ny the UnitedStates of America; (3) obligations of the State of New York; (4) with the approval of the
New York State Comptroller in tax anticipation notes or revenue anticipation notes issued by any municipality,
school district, or district corporation, other than those notes issued by the Town, itself; (5) certificates of
participation issued in connection with installment purchase agreements entered into by political subdivisions of the
State pursuant to Section 109-b(10) of the GML (6)obligations ora New York public benefit corporation which are
made]awful investments for municipalities pursuant to the enabling statute of such public benefit corporation or(7)
in the case of moneys held in certain reserve funds established by the Town pursuant to law, in obligations of the
Town.
All of the foregoing investments are required to be payable or redeemable at the option of the owner within
such times as theproceeds will be needed to meet expenditures for purposes for which the moneys were provided
and, in the case of obligations purchased with the proceeds of bonds or notes, shall be payable or redeemable in any
event, at the option of the owner, within two years of the date of purchase. Unless registered or inscribed in the name
of the Town, such instruments and investments must be purchased through, deliveredto and held in custody ora bank
or trust company in the State pursuant to a written custodial agreement as provided by Section 10 of the GML.
SThe Town Board has adopted an investment policy and such policy conforms with applicable laws of the
tate governing the deposit and investment of public moneys. Ail deposits and investments of-the Town are made
in accordance with such policy.
Budgetary Procedures
The head of each administrative unit of the Town is recjuired to file detailed estimates o£revenues (other than
real property taxes) and expenditures for the next fiscal year w~th the budget officer (Suoervisor) on or before August
15th. Estimates for each fire district situated within the Town must also ~e filed with t~e budget officer by this d~te.
After reviewing these estimates, the budget officer prepares a tentative budget which includes his recommendations.
A budg~et message explaining the main features of the budget is also prepared at this time. The tentative budget is
filed wah the Town Clerk not later than the 30th of Septem§er. Subsequently, the Town Clerk presents the tentative
budget to the Town Board at the regular or special hearing which must be held on or before October 5th. The Town
Board reviews the tentative budget and makes such changes as it deems necessary and that are not inconsistent with
the provisions of the law. Following this review process, the tentative budget and such modifications, if any, as
approved by the Board become the preliminary budget. A oublic hearing, notice of which must be duly published
in the Town's official newspaper, on the preliminary budget is generally required to be held on the Thursday
immediately following the general election. At such hearing, any person ma), express his opinion concerning the
preliminary budget; however, there is no requirement orprov~sion that the prehminary budget or any portion thereof
be voted o~n~ by members of the public. After the public hearing, the Town Board may furtl:ier change and revise the
preliminar) budget. The Town Board, by resolution, adopts the preliminary budget as submitted or amended no later
than November ~0th, at which time, the preliminary budget becomes the annual budget of the Town for the ensuing
fiscal year. Budgetary control during the year is the responsibility of the Supervisor who is assisted in this area by
the Town Comptroller. However any changes or modifications to the annual budget including the transfer of
appropriations among line items must be approved by resolution of the Town Boar&
Budget Summaries for the 2008 and 2009 fiscal years may be found in Appendix A.
12
Financial Operations
The Supervisor functions as the chief fiscal officer as provided in Section 2 of the Local Finance Law' in
this role, th.e Supervisor as responsible for the Town's accounting and financial re ortin activities In addition th
Supervisor is also the Town's budget officer and must therefore prepare the annuaPl tentagtive budget for submissione
to the Town Board. Pursuant to Section 30 of the Local Finance Law, the Supervisor has been authorized to issue
or renew certain specific types of notes. As required by law, the Supervisor must execute an authorizing certificate
which than becomes a matter of public record.
The Town Board, as a whole serves as the finance board of the Town and is responsible for authorizing, by
resolution, all material financ al transactions such as operating and capital budgets anc~ bonded debt.
· Town f~n. ances are operated primarily through the General and Special Revenue Funds. The General Fund
receives most ot its revenue ~i'om real property tax and State aid. Current operating expenditures are paid from these
funds subject to available appropriations. The Town also has refuse, sewer and wastewater distrtcts, which are
accounted for within separate funds. The primary sources of income for these districts comes from special
assessments levied against districtproperties at the same time real estate taxes are levied. Capital projects and
eqmpment, l~urcnases are accounted mr ~n special capital projects funds. The Town observes a calendar year (January
I through tJecember 31) for operating andreporting purposes.
The Town receives most of its revenues from a real property tax on all taxable property situated within the
Town and from State Aid. A summary of such revenues for the five most recently completed'fiscal years may be
found in Appendix A.
Real Property Taxes
See "Real Property Tax Information", herein.
State Aid
The Town receives financial assistance from the State which comes primarily in the form of a state
appropriation for State Aid to municipalities for operating purposes. There is no assurance, however, that the State
appropriation for State Aid to municipalities will continue, either pursuant to existing formulas or in any form
whatsoever and, in any event, if appropriated and apportioned to the Town, payment can be made only if such monies
are available therefore· The State ~s not constitutionally obliged to maintain or continue such aid. See Appendix A.
Expenditures
The ma.~or categories of expenditure for the Town are General Government Support, Public Safety,
Transportation, Economm Assistance and Opportunity Home and Community Services, Culture and Recreation,
Employee Benefits and Debt Service. A summary oft~e expenditures for the five most recently completed fiscal
years may be found in Appendix A.
Pension Systems
Substantiall~ all ,e, mployees of the Town are members of the New York State and L~al E~,ployees'
Retirement System ("ERS) or the New York State .a~,~ Local Police and F!,re Retirement System ( PFRS J. (Both
Systems are referred to together hereinafter as the Retirement Systems where appropriate·) The Retirement
Systems are cost-sharing multiple public emp oyer retirement systems. The obligation of employers and employees
to contribute and the benefits to employees aregoverned by the New York State Retirement System andSocial
Security Law (the "Retirement System Law"). The Retirement Systems offer a wide range of plans and benefits
which are related to years of service and final average salary, vesting of retirement benefits, death and disability
benefits and optional methods of benefit payments. All benefits generally vest after fiveyears of credited service.
The Retirement System Law generallyprowdes that all participating employers in each retirement system are jointly
and severally liable for any unfunded investments. Such amounts are collected throu~[h annual billings to all
participating employers· Generally, all employees, except certain part-time employees,participate in the Retirement
Systems. The Retirement Systems are non-contr butory with respect to mem§ers hiredprior to July 27, 1976. All
.e, mploy.ees~hq bec..ame members on or a~,fter July~27, J9.76 must contribute 3% of their gross annualsalary towards
me cost or me~r renremen~ program, t~napter ~e of the Laws of 2000 eliminated the 3% for Tier 3 and Tier 4
members with 10 years of service credit·
A pension reform bill was signed by the Governor ntt Law as Chapter 49 of the Laws of 2003 which
changed the cTcle of billing to match budget cycles of the Town. Under the previous method, the Town was unsure
of how much ~t would have to pay to the system nntil after ts budget was implemented Under the new system the
contribution for a given fiscal year will be based on the va ue of the pension fund on the prior April 1 instead of the
following April 1 so that the Town will be able to more accurately include the cost of the contribution into its budget.
13
Chapter 49 requires the Town to make a minimum contribution of 4.5% of payroll every year, including years in
which the investment performance of the fund would make a lower contribution possible.
On July 20, 2004 the New York State Legislature passed a bill amending the General Municipal Law, Local
Finance Law and the Retirement and Social Security Law. On July 30, 2004~ the Governor signed the new retirement
system legislation into Law as Chapter 260 of the Laws of 2004. The bill gives the employer the option to move the
annual payment date for contributions from December 15t~ to February 1st, effective December 15, 2004. It increases,
from five to ten years, the maximum amortization period of the portton of employer contributions that exceeds 7%
of payroll for the 2004-2005 fiscal y_ear of the Retirement System (April 1 - March 31). It also allows employers to
issue bonds to finance their 2005-2006 and 2006-2007 fiscal year contributions in excess of 9.5% and 10.5%,
respectively. This amortization may be made with the Retirement System or the Town could issue a maximum of
1 O-year general obligation bonds, the interest on which would be set at prevailing bond market rates on the date of
sale and would be taxable for federal income tax purposes.
The Legislature enacted new pension provisions (Chapter 260, Laws of 2004) that enabled local governments
to amortize a portion of their bill. The law allows local governments to amortize required contributions in excess
of 10.5 percent for 2006, 9.5 percent for 2005 and 7 percent for 2004 of estimated salaries over a 10-year period.
Employers are required to pay 5 percent interest on any amortized amounts.
Contributions to the Retirement Systems
Fiscal Year Amount
Ending of
December 31: Contribution
2004 ....................................... $1,670,102
2005 ....................................... 2,085,137
2006 ...................................... 1,837,992
2007 ....................................... 1,947,914
2008 ....................................... 1,838,376
2009 (Budget) ................................ 1,875,500
Other Post Employment Benefits
It should also be noted that the Town provides post-retirement healthcare benefits to various categories of
former employees. These costs may be expected to rise substantially in the future. There is now an accounting rule
that will reqmre governmental entities, such as the Town, to account for post-retirement healthcare benefits as it
accounts for vested ~,ension benefits. GASB Statement No. 45 ("GASB 45") of the Governmental Accounting
Standards Board ("GASB"), described below, requires such accounting. Although GASB 45 encourages earlier
adoption, implementation is required by the following dates, based on the size of government measured~oy annual
revenue:
Annual Revenue
Greater than $100 million
Between $10 million and $100 million
Less than $10 million
Effective for Fiscal Year Ending After:
December 15, 2006
December 15, 2007
December 15, 2008
School Districts and Boards of Cooperative Education Services, unlike other municipal units of government
in the State, have been prohibited from reducing retiree health benefits or increasing[ health care contributions
received or paid by retirees below the level of benefits or contributions afforded to or required from active employees
since the implementation of Chapter 729 of the Laws of 1994. This protection from unilateral reduction of benefits
has been extended annually andcontinued through May 15, 2009 pursuant to Chapter 43 of the Laws of 2008.
Legislative attempts to provide similar protection to retirees of otherlocal units of government in the State have not
succeeded as of this date. Nevertheless, many such retirees of all varieties of municipal units in the State do presently
receive such benefits.
GASB 45 and OPEn. OPEn refers to "other p~.st-employment benefits," meaning other than pension
benefitsz disability benefits and OPEn consist primarily of health care benefits, and may_ include other benefits such
as disability benefits and life insurance. Until now, these benefits have generally been administered on a pay-as-you-
go basis and have not been reported as a liability on governmental fmancial statements.
GASB 45 will re§uire municipalities and school districts to account for OPEn liabilities much like they
already account for p. ens~on liabilities, generally adopting the actuarial methodologies used for pensions, with
adjustments for the different characteristics of OPEn and the fact that most mtmicipahties and school districts have
not set aside any funds against this liabilit7. Unlike GASB 27, which covers accounting for pensions, GASB 45 does
not require municipalities or school districts to report a net OPEn obligation at the start.
Under GASB 45, based on actuarial valuation, an annual required contribution ("ARC") will be determined
for each municipality or school district. The ARC is the sum of(a) the normal cost for the year (the p. resent value
of future benefits being earned by current employees) plus (b) amortization of the unfunded accrued liabdity (benefits
14
already earned by current and former employees but notyet provided for)~ using an amortization period of not more
than 30 years. Ifa municipality or school district contributes an amount less than the ARC, a net OPEB obligation
will result, which is required to be recorded as a liability on its financial statements.
The actuarial study has been completed by an independent actuarial firm. The Town's ARC is
approximately $4.5 million and its unfunded actuarial accrued liatiility is approximately $43 million. GASB 45 does
not require that the unfunded liability actually be amortized nor that it be aYvance funded, onlythat the municipality
or school district account for its unfunded accrued liability and compliance in meeting its ARC.
Actuarial Valuation will be required every 2 years for OPEB plans with more than 200 members, every 3
years if there are less than 200 members.
REAL PROPERTY TAX INFOR3,IATION
Real Property Taxes
The Town derives a significant portion of its annual revenue through a direct real property tax.
The following table presents the total tax levy, by purpose, with adjustments and collection performance for
each of the last five fiscal years.
Tax Levy and Collection Record
Fiscal Year Ending December 31:
2005 2006 2007 2008 2009
Total Tax Levy ................ $89,495,573 $89,934,663 $97,216,091 $103,216,661 $108,610,530
Amount Collected ............. 83,356,976 86,628,595 94,288,000 100,030,520 58,000,009a
Returned to County
Amount .................... 2,138,597 3,106,068 2,928,091 3,186,141 NAa
Percentage .................. 2.39% 3.45% 3.01% 3.08% NAa
Uncollected at End of Year
of Levy ................... None None None None NA
a. As of January 23, 2009.
Tax Collection Procedure
Property taxes for the Town are collected by the Town tax receiver. Such taxes are due andp_ayable in equ, al
installments on'December 1 and May 10 but may ~e paid without penalty by January. l 0 and May M, respectively.
The penalty added to delinquent taxes is one-twelfth thc rate of interest determined by the State Commiss. ione? of
Taxation and Finance. The rate is determined each year by July 15 based on the one-year constant maturity y~eld
index for United States Treasury securities for thc quarter-year endinl~ on the immediately preceding June 30. The
rate is effective for a twelve month period commencing August 1 eacY~year and in no event will bc less than ten per
centum per annum.
The Town receives its full le.vy before the end of. its .fiscal year. U, ncglle..c, ted amounts are not segregated by
the Town tax receiver, and any deficiency in tax collection is the County s habtllty.
Tax Rates
(Per $100 Assessed Valuation)
Fiscal Year Ending December 31:
2005 2006 2007 2008 2009
General - Townwide ................ $139.73 $140.37 $151.02 $160.22 $184.44
General - Outside Village ............ 5.43 4.90 3.99 7.84 6.87
38.37 40.68 39.63 41.74 39.75
Highway ......................
15
Large Taxable Properties
2009 Assessment Roll
Name
Peconic Landing; at Southold .......................
LILCO, LIPA, ~arketspan, Keyspan .................
Village of Greenport-Power Plant ....................
Fishers Island Dev. Cot0 ...........................
Robins Island Holding LLC .........................
Alan Cardinale ..................................
North Fork Bank .................................
Damianos, Herodotus ..............................
New York Telephone .............................
Levin Family Ltmited Partnership ....................
Anderson, Bradley & Francesca .....................
Norris, Susan ....................................
Laurel Links & Country Club .......................
Kimogenor Pt Co .................................
DriftWood Cove .................................
Type
Commercial
Utility
Utility
Residential Development
Private Lands
Shopping Center
Bank Butlding
Vineyard
Utility
Motel& Restaurant
Farmland & Private Lands
Various Prol~erties
Country Club
Co- ~Op
Co-Op
Assessed
Valuation
1 707 704
1,515 689
585 000
460 100
330 500
282 600
234 131
234 000
187 936
148.950
121.400
111.800
96.300
94.600
90~000
$6,200,710~
a. Assessment Roll established in 2008 for levy and collection of taxes during 2009 Fiscal Year.
b. Represents approximately 5.69% of the total taxable assessed valuation of the Town for 2009.
LITIGATION
The Town is subject to a number of lawsuits in the ordinary conduct of its affairs. For the most part, any
potential adverse decisions in such suits, either individually or in the aggregate, are not likely to have a material
adverse effect on the Town.
There are certain matters worthy of special mention:
Stanton, at al. v. Town of Southold - This is an action in inverse condemnation and nuisance by forty-t~o
property owners, alleging property damage in the form of erosion caused by a Town-owned jetty. The Town ts
engaged in studies to determme the issues surrounding the alleged erosion, its causes, and possible solutions.
Although this case was first fi]ed in 1997, discovery has not been completed. The issues in this case are complex
and wiiq require extensive expert testimony. The nature and extent of damages, if any, are unknown at this,po!nt.
Insurance coverage may be available for potential liability for alleged compensatory damages. The Town has oenled
any wrongdoing and intends vigorously to defend any further prosecution of this action.
Quad Enterprises~ et al. v. Town of Southold - This action arises from the Town Board of the Town of
Southold's alleged refusal to approve a change of zone application filed by plaintiffs, which sought substantially to
increase the zoning density of a parcel of landowned by a developer plaintiff. Plaintiffs assert claims under the Fair
Housing Act, Americans with Disabilities Act, State and Town Law, al!,eging housing discrimination against senior,
handicapped and d sabled residents, who are also named as "Jane Doe plaintiffs. Plaintiffs seek declara.to.ry relief
granting their desired zoning, as well as compensatory and punitive damages in the am%unt of $60 ,m, fl!l.o,n ( ~$5
million for each of the six federal causes of action). Insurance coverage may be available ~or potential liaoiiity tot
alleged compensatory damages. Both sides have filed summary judgment on liability issues only. The Town has
denied all wrongdoing and intends vigorously to contest these claims.
East End Resources, LLC v. Town of Southold Plann ng Board~ et al - This action arises from a residential
site plan appl cat on pend ng~ before !,h,e Town of,~outhold Planning Board, seeking the approval of,a.multl-.unlt
planned retirement commumty (the Application ). Plaintiff/Petit oner alleges that the I own aha its various
agencies, have systematically delayed and sought to defeat the approval of the Application. In this action,
Plaintiff/Petitioner asserts eight claims, seeking declaratory relief compelling the approval-of the Application, as well
as compensatory relief in the amount of $20 million as a result of alleged federal and state constitutional violations.
The Town intends vigorously to defend this action and to contest all asserted claims.
Notices of Claim - One l~ossible noteworthy Notice of C aim has been filed against the Town relating to
olice ma~--ff~Z-. I~ice of Claim the plaintiffdemands $5 million in damages for physic,a,l, emotional and civil
P .... ' ' ' ' st b Town olice officers 'on or about.Februa .
rights ~njunes r~lated to an alleged tnc~dent, beheved to be an arre. y _ ~ p ..... ~.,rY
2 I, 2007 and orlor arrests." Due to the vague nature of the .allegations, the ~o. wn.~s n. ot aware or agy a?tai~s,o~ ?is
purported clatm and intends vigorously to contest tt both prior to and after the lnsmuUon ora lawsuit. ^s ottne aate
of this Official Statement, no lawsuit has been served upon the Town.
16
BONDHOLDER RISKS AND MARKET FACTORS AFFECTING FINANCINGS
OF THE STATE AND MUNICIPALITIES OF THE STATE
There are certain potential risks associated with an investment in the Bonds, and investors.should be
thoroughly familiar with thts Official Statement, including its appendices, in order to make an informed investment
decision. Investors should consider, in particular, the following factors:
The Town's credit rating could be affected by circumstances beyond the Town's control. Economic
condit OhS such as the rate of unemployment and inflation termination of commercial operations by corporate
taxpayers and employers as well as natural catastrophes, could adversely affect the assessed valuation of Town
property and its ability to maintain fund ba!a_nces and other statistical indices commensurate with its current credit
rating. Accordingly, a decline in the Town s credit rating could adversely affect the market value of the Bonds.
In addition, if and when a holder of any of the Bonds should elect to sell a Bond prior to its maturity, there
can be no assurance that a market shall have been established, maintained and be in existence for the purchase and
sale o£any Bonds The price orpr n¢ipa value &the Bonds is dependent on the prevailing level of interest rates.
If interest rates should increase, the price of a bond or note may dechne causing the bond or noteholder to potentially
incur a capital loss if such bond or note is sold prior to its maturity.
The financial condition of the Town as well as the market for the Bonds could be affected by a variety of
£actors, some of which are beyond the Town's control. There can be no assurance that adverse events in the State,
including, for example, the seeking by a municipality of remedies pursuant to the Federal Bankruptcy Act or
otherwise, will not occur which might affect the market price o£and the market for the Bonds. Ifa significant default
or other financial crisis should occur in the affairs of the State or any of its agencies or political subdivisions thereby
further impairing the acceptability of obligations issued by borrowers within the State both the ability of the Town
to arrange for additional borrowings and the market for and market value of outstanding debt obligations, including
the Bonds, could be adversely affected.
Future amendments to applicable statutes affecting the treatment of interest paid on munic~al bonds,
including the Bonds, for income taxation purposes could have an adverse effect on the market value otthe Bonds
(see "Tax Matters" herein).
TAX MATTERS
Opinion of Bond Counsel
In thc opinion of Hawkins Delafield & Wood LLP, Bond Counsel to the Town, under existingstatates and
court decisions and assuming continuing compliance with certain tax certifications described herein (I) interest on
the Bonds is excluded from gross income,,forFedcral income tax purposes pursuant to Section 103 of thc lntc. rnal
Reveune Code of 1986, as amended (the Code"), and (ii) interest on thc Bonds is not treated as a,~prefercnce, item
in calculating thc alternative minimum tax imposed on individuals and corpora.tions under thc. ~od.c .and is not
included in thc adjusted current earnings of corporations for purposes of calculating thc alte.m?t~v.c, mlmmu~n tax.
The Arbitrage and Usc of Proceeds Certificate of the Town (the "Tax Certificate'), which will bc dchvercd
concurrently with thc delivery of the Bonds will contain ~provisions and procedures relating to compliance with
applicable requirements of the Code In rendering its opimon, Bond Counsel has relied on certain representations,
certifications of fact, and statements of reasonab]-e expectations made by thc Town in connection w~th the Bonds,
and Bond Counsel has assumed compliance by the Town with certain provisions and procedures set f~?th in the Tax
Certificate relating to compliance w~th applicable requirements of the Code to assure thc exclusion of ~ntcrest on the
Bonds from gross income under Section 103 of thc Code.
In addit on, in thc opinion of Bond Counsel to the Town, under existing statatcs interest on the Bonds is
exempt from personal income taxes of New York State and its political subdiv~s OhS, including Thc City of New
York.
Bond Counsel to the Town expresses no opinion regarding any other Federal or state tax consequences with
respect to the Bonds. Bond Counsel renders its opinion under existing statutes and court decisions as of the issue
date, and assumes no obligat on to update its opinion after the issue date to reflect any future action, fact or
circumstance, or change n law or interpretation, or otherwise. Bond Counsel expresses no opinion on the effect of
any action hereafter taken or not taken in reliance upon an opinion of other counsel on the exclusion from gross
income for Federal income tax purposes of interest on the Bonds, or on the exemption from state and local tax law
of interest on the Bonds.
17
Certain Ongoing Federal Tax Requirements and Certifications
The Code establishes certain significant ongoing requirements that must be met subsequent to the issuance
and delivery of the Bonds in order that interest on such Bonds be and remain excluded from gross income und6r
Section 103 of the Code. These requirements include, but are not limited to, requirements re~ating to use and
expenditure of gross proceeds of theBonds, yield and other restrictions on investments of grossproceeds, and tho
arbitrage rebate rec. lmrement that certain excess oarnings on gross proceeds be rebated to the Federal government.
Nonco.mpliance with such requirements may cause interest on the Bonds to become included in gross income for
Federal ~ncome tax purposes retroactive to their issue date, irrespective of the date on which such noncompliance
occurs or is discovered. The Town, in executing, the Tax Certihcate, will certify to the effect that the Town will
comply with the provisions and procedures set torth therein and that it will do and perform all acts and things
necessary or desirable to assure the exclusion of interest on the Bonds from gross income under Section 103 oftue
Code.
Certain Collateral Federal Tax Consequences
The following is a brief discussion of certain collateral Federal income tax matters with respect to the Bonds.
It does not purport to address all aspects of Federal taxation that may be relevant to a particular owner of a Bond.
Prospective investors, particularly those who may be subject to special rules, are advised to consult their own tax
advisors regarding the Federal tax consequences of owning and disposing of the Bonds.
The Bonds will be designated by the Town as "qualified tax-exempt obligations" pursuant to the provisions
of Section 265 of the Code.
Prospective owners of the Bonds should be aware that the ownership of such obligations may result in
collateral Federal income tax consequences to various categories of persons, such as corporations (including S
co.rporations and foreign corporations), financial institutions, property and casualty and life insurance compantes,
individual recipients of Social Security and railroad retirement benefits, individuals otherwise eligible for the earned
income tax credit, and taxpayers deemed to have incurred or continued indebtedness to purchase or carry obligations
the interest on which is excluded from gross income for Federal income tax purposes. Interest on the Bonds may be
taken into account in determining the tax liability of foreign corporations subject to the branch profits tax imposed
by Section 884 of the Code.
Original Issue Discount
Original issue discount" ("OID") is the excess of the sum of all amountspayable at the stated maturity of a
Bond (excluding certain "qualified stated interest" that is unconditio,n, ally payable at least annually at prescribed
rates) over the issue price of that maturity. In general, the "issue price' ora maturity means the first price at which
a substantial amount of the Bonds of that maturity was sold (excluding sales to bond houses, brokers, or similar
persons acting in the capacity as underwriters, placement agents, or wholesalers). In general, the issue price for each
maturity of the Bonds is expected to be the initial public offering price set forth in this Official Statement. Bond
Counsel further is of the opinion that, for any Bondhaving OlD (a "Discount Bond") OlD that has accrued and is
properly allocable to the owners of the Disc. ount Bond under Se. ction 1288 of the Code is excludable from gross
income for Federal income tax purposes to the same extent as other interest on the Bonds.
In general, under Section 1288 of the Code, OID on a Discount Bond accrues under a constant yield method,
based on periodic compounding of interest over prescribed accrual periods using a compounding rate cletermined by
reference to the yield on that Discount Bond. An owner's adjusted basis in a Discount Bond is increased by accrued
OID for purposes of determining gain or loss on sale, exchange, or other disposition of such Discount Bond. Accrued
OlD may be taken into account as an increase in the amount of tax-exempt income received or deemed to have been
receivedfor purposes of determining various other tax consequences of owning a Discount Bond even though there
will not be a corresponding cash payment.
Owners of Discount Bonds should consult their own tax advisors with respect to the treatment of original
issue discount for Federal income tax purposes, including various special rules relating thereto, and the state and Iocal
tax consequences of acquiring, holding, and disposing of Discount Bonds.
Bond Premium
In general, if an owner acquires a Bond for a purchase price (excluding accrued interest) or otherwise at a
tax basis that reflects apremium over the sum of all amounts payable on the Bond after the acquisition date
(excludine certain "aualified stated interest" that is unconditionally payable at least annually at prescribed rates), that
l~remium c~onstitutes'"bond premium" on that Bond (a"Premium Bdnfi"). In general, under Section 171 of the Code,
hn owner of a,Premium Bond must amortize the bond premium over the rema.ming term of the Premiu .m Ban.d, based
on the owner s yield over the remaining term of the Premium Bond, determined based on constant y~eldprm?ples
(in certain cases involving a Premium Bond callable prior to its stated maturity date, the amortization perion ann yield
may be required to be determined on the basis of an earlier call date that results in the lowest yield on such Premium
Bond). An owner of a Premium Bond must amortize ~,e. bond premium by offsetting the qualified stated interest
allocable to each interest accrual period under the owner s regular method of accounting against the bond premium
18
allocable to that period. In the case of a tax-exempt Premium Bond if the bond premium allocable to an accrual
period exceeds the qualified stated interest allocable to that accrual period the excess is a nondeductible loss. Under
certain circumstances, the owner of a Premium Bond may realize a taxable gain upon disposition of the Premium
Bond even though it is sold or redeemed for an amount less than or equal to the owner's original acquisition cost.
Owners of any Premium Bonds should consult their own tax advisors regarding the treatment of bond premium for
Federal income taxpurposes including various special rules relating thereto and state and local tax consequences
itl connection with the acquisitiOn, ownership, amortization of bond premium on, sale, exchange, or other disposition
of Premium Bonds.
Information Reporting and Backup Withholding
Information reporting requirements apply to interest on tax-exempt obligations including the Bonds. In
general, such requirements are satisfied if the interest re.ci_pient completes, and provides the payor w~th, a Form W-9,
Request for Taxpayer Identification Number and Certitlcation," or unless the recipient is one of a limited class of
exempt recipients, including corporations. A recipient not otherwise exempt from reformation reporting who fails
to satisfy the information reporting requirements will be subject to"backup withholding "which means that thepayor
is required to deduct and withhold a tax from the interest payment, calculated in the manner set forth in the Code.
For the foregoing purpose, a "payor" generally refers to the person or entity from whom a recipient receives its
payments of interest or who collects'such payments on behalf of the recipient.
If an owner purchasing a Bond through a brokerage account has executed a Form W-9 in connection with
the establishment of such account, as generally can be expected, no backupwithholding should occur. In anyevent,
backup withholding does not affect the excludability of the interest on the Bonds from gross income for Federal
income tax purposes. Any amounts withheld pursuant to backup withholding would be allowed as a refund or a credit
against the owner's Federal income tax once the required information is furnished to the Internal Revenue Service.
Miscellaneous
Tax legislation, administrative action taken by tax authorities, and court decisions, whether at the federal or
state level, may adversely affect the tax-exempt status of interest on the Bonds under Federal or state law and could
affect the market price or marketability of the Bonds.
Prospective purchasers of the Bonds should consult their own tax advisors regarding the foregoing matters.
DOCUMENTS ACCOMPANYING DELIVERY OF THE BONDS
Absence of Litigation
Upon delivery of the Bonds, the Town shall furnish a certificate of the Town Attorney, dated the date of
delivery of the Bonds, to the effect that there is no controversy or litigation of any nature pendtng or threatened to
restrain or enjoin the issuance, sale, execution or delivery of the Bonds, or in any way contesting or affecting the
validity of the Bonds or any of the proceedings taken with respect to the issuance and sale thereof or the application
of moneys to the payment of the Bonds, and further stating that there is no controversy or litigation of any nature now
pending or threatened by or against the Town wherein an adverse judgment or ruling could have a material adverse
~mpact on the financial conditmn of the Town or adversely affect the power of the Town to levy, collect and enforce
the collection of taxes or other revenues for the payment of the Bonds, which has not been disclosed in this Official
Statement.
Legal Matters
Legal matters incident to the authorization, issuance and sale of the Bonds will be subject to the final
approving opinion of Hawkins Delafield & Wood LLP, Bond Counsel. Such opinion will be available at the time
of delivery of the Bonds and will be to the effect that the Bonds are valid and legally binding general obligations of
the Town for which the Town has validly pledged its faith and credit and, unless paid from other sources, all the
taxable real property within the Town is subject to the levy of ad valorem real estate taxes to pay the Bonds and
interest thereon without limitation of rate or amount. Said opinion shall also contain further statements to the effect
that (a) the enforceability of rights or remedies with respect to such Bonds may be limited by bankruptcy, insolvency,
or other laws affecting creditors' rights or remedies heretofore or hereafter enacted, and (b) said law firm has not been
requested to examine or review and has not examined or reviewed the accuracy or sufficiency of the Official
Statement, or any additional proceedings, reports, correspondence, financial statements or other documents,
containing financial or other information relative to the Town which have been or may be furnished or disclosed to
purchasers of the Bonds, and expresses no opinion with respect to such financial or other information, or the accuracy
or sufficiency thereof.
19
Closing Certificates
Upon thc delivery of thc Bonds, the Purchaser will be furnished with thc following items: (i) a Certificate
of the Town Supervisor to the effect that as of the date of this Official Statement and at all times subscq?ant thereto,
up to and including the time of delivery of the Bonds, this Official Statement did not and does not contain any untrue
statement ora material fact or omit to state a material fact necessary to make thc statements herein, in the light of
thc circumstances under which they wcrc made, not misleading, and further stating that there has been no adverse
material change in the financial condition of thc Town since the date of this Official Statement up to and including
the time of delivery of the Bonds, and having attached thereto a copy. of this Official Statement; (ii) a Certificate
signed by the Town Supervisor evidencing payment for thc Bonds; (iii) a Signature Certificate evidencing thc duc
execution of thc Bonds, including statcmants that (a) no litigation of any nature ispanding or threatened, restraining
or enjoining the issuance and delivery of the Bonds or the levy and collection oI taxes to pay thc principal of and
interest thereon, nor in any manner questioning the proceedings and authority under which the Bonds were authorized
or affecting thc validity of the Bonds thereunder, Co) neither the corporate existence or boundaiies of the Town nor
the title of any of the officers thereof to their respective offices is being contested, and (c) no authority or proceedings
for the issuance of the Bonds have been repealed, revoked or rescinded; and (iv) an Arbitrage and'Use of Procce~]s
Certificate executed by thc Town Supervisor, as described under "Tax Matters".
DISCLOSURE UNDERTAKING
This Official Statement is in a form "deemed final" by thc Town for the purposes of Securities and Exchange
~ommission Rule 15c2-12. At the time of the d.c,!ivcryfif the Bonds, the Town wiIl provide an executed copy of its
Undertaking to Provide Continuing Disclosure (the 'Undertaking"). Said Undertaking will constitute a written
agreement or contract of the Town for thc benefit of holders of andowncrs of bencficia[intcrcsts in thc Bonds, to
provide, or cause to be provided:
(1) during any succeeding fiscal year of the Town in which the Bonds arc outstanding, to (a) each nationally
recognized municipal securities information repository ("NRMSIR") and (b) thc New York State Information
Depository, if created, ("SID"), (i) certain annual financial information, in a form generally consistent with
the information contained or cross-reference~ in this Official Statement under the headings: "The Town",
"Economic and Demographic Information'¥ Indebtedness of the Town", "Finances of the Town", "Real
Property Tax Information", and "Litigation"; and in Appendix A, on orprior to the 180th day following thc
end of each fiscal year, including (ii) the audited financial statement, if any, for the preceeding fiscal year
of the Town, unless such audited financial statement, if any, shall not then be available in which case thc
unaudited financial statement shall be provided and an audited financial statement shall be delivered to each
NRMSIR and to the S]D within 30 days after it becomes available and in no event later than 360 days after
the end of each fiscal year;
(2) to (a) each NRMSIR, or to the Municipal Securities Rulemaking Board ("MSRB"), and to (b) the SID, timely
notice of the occurrence of any of the following events with respect to the Bonds, if material:
(i) principal and interest payment delinquencies; (ii) non-payment related defaults; (iii) unscheduled draws
on debt service reserves reflecting financial difficulties; (iv) unscheduled draws on credit enhancements
reflecting financial difficulties; (v) substitution of credit or liquidityproviders, or their failure to perform;
(vi) adverse tax opinions or events affecting the tax-exempt status otthe Bonds; (vii) modifications to rights
of Bondholders; (viii) bond calls; (ix) defeasances; (x) release, substitution, or sale of property securing
repayment of the Bonds; and (xi) rating changes.
The Town may provide notice of the occurrence of certain other events, in addition to those listed above, if
it determines that any such other event is material with respect to the Bonds; but the Town does uot undertake to
commit to provide any such notice of the occurrence of any material event except those events listed above; and
(3) to (a) each NRMSIR, or to the MSRB, and to (b) the SID, in a timely manner, notice of a failure to provide
the annual financial information by the date specified.
The Town's Undertaking shall remain in full force and effect until such time as the principal of, redemption
premiums, if any, and interest on the Bonds shall have been paid in full. The sole and exclusive remedy for breach
or default under the Undertaking is an action to compel specffic performance of the undertakings of the Town, and
no person or entity, including a holder of the Bonds, shallbe entitled to recover monetary damages thereunder under
any circumstances. Any failure by the Town to comply with the Undertaking will not constitute a default with respect
to the Bonds.
The Town reserves the right to amend or modify the Undertaking under certain circumstances set forth
therein provided that any such amendment or modification will be done in a manner consistent with Rule 15c2-l 2
as then m effect.
The Town is in compliance with all previous undertakings made pursuant to Rule 15c2q 12.
20
BOND RATING
· ~ Mo.ody'~ Investors Services, Inc. has assigned a rating of "Aa3" to the Bonds. Such ratingreflects only the
mew or such rating agency, and any desired exvlanation of the significance of such rating shouldbe obtained from
such rating agency. Generally, a rating agency'bases its ratings on the information and materials furnished to it and
on investigatton, studies and assmnptlons by the rating agency. There is no assurance that a particular rating will
apply for any given period of time or that it will not ~e l~owered or withdrawn entirely if, in the judgment of the
agency originally establishing the rating, circumstances so warrant. Any downward revision or withdrawal of such
ratings could have an adverse affect on the market price of the Bonds or the availability ora secondary market for
suchBonds. Such ratings should not be taken as a recommendation to buy or hold the Bonds.
FINANCIAL ADVISOR
Munistat Services, Inc. has assisted the Town as financial advisor in certain matters with respect to the sale
and issuance of the Bonds.
ADDITIONAL INFORMATION
Additional information may be obtained upon request from the office of the Town Comptroller, John A.
Cushman Il, Town of Southold, Town Hall, P.O. Box 1179, Southold, New York 11971, telephone number 631/765-
4333, emaihj ohn.cushman~town.southold.ny.us or from the office of Munistat Services, Inc., 12 Roosevelt Avenue,
Port Jefferson Station, New York 11776, telephone number 631/331-8888 and website: http://www.munistat.com.
Any statements in this Official Statement involving matters ofovinion or estimates, whether or not expressly
so stated, are intended as such and not as representations of fact iqo representation is made that any of such
statements wilt be realized. This Official Statement is not to be construed as a contract or agreement between the
Town and the original purchasers or holders of any of the Bonds.
This Official Statement is submitted only in connection with the sale of the Bonds by the Town and may not
be reproduced or used in whole or in part for any other purpose.
TOWN OF SOUTHOLD, NEW YORK
March 10, 2009
By: s/s
SCOTT A. RUSSELL
Town Supervisor and Chief Fiscal Officer
21
APPENDIX A
FINANCIAL INFORMATION
Balance Sheet
General Fund
ASSETS
Cash and Investments
Accounts Receivable
Due From Other Funds
Due From Trust Funds
State and Federal Aid Receivables
Due From Other Governments
Supply Invento~
Prepaid Expenses
Total Assets
2005
$ 9,292,437
24,533
176,390
68
81,849
1,867,136
1,204
498_,3~4z[
FLoat Year End!n~g Dece~mb?r 31: __ __~
2006 2007
8,339,472 $ 21,437,689
22,346 17,263
190,208 74,500
110,153 62,377
2,075,955 826,834
2,099 1,275
426,200 460,951
$ __ _[1,9~41,961 $ 11,166,433 $. 22,8~80,889
LIABILITIES AND FUND EQUITY
Accounts Payable
Due to Other Funds
Due to Other Cmvemments
Due to Trust Funds
Deferred Revenues
$ 627,049
1,888,241
393,570
7,1)44
3,018,595
$ 701,018 $ 830,531
1,205,516 2,305,222
243,292 9,569,319
12,601 25,484
3,619,307 5,066,541
Total Liabilities 5,934,499 5,781,734 17,797,097
4,009 13,284 193,041
1,105,879 513,329 588,614
1,204 2,099 1,275
498,344 426,200 460,951
2,657,200 2,185,000 1,816,000
1,740,826 2,244,787 2,023,911
Fund Balances - Reserved:
Encumbrances
Insurance claims
Supply Inventory
Prepaid Expenses
Fund Balances - Unreserved:
Designated - Ensuing Year's Budget
Undesignated
007 462 5,384,699 5,083,792
Total Fund Equity
Total Liabilities and Fund Equity $ 11,941,961
Sourccs: Auditcd Financial Reports of thc Town (2005 through 2007)
Table itself NOT audited.
A-I
S~atement of Revenues, Expenditures and Changes in Fund Balance
General Fund Town Wide
Real Property Taxes
Other Real Property Tax Items
Non-Property Tax Items
Depamnental Iacome
hatergovenmaental Charges
Use of Money & Property
Licenses & Permits
Fines & Forfeitures
Sale of Proporty & Comp. fo~ Loss
Miscellaneous Local Sources
State Aid
Federal Aid
20o~3
Fiscal Year Ending Dgcember
2004 2005 200~6 2007
13,247,572 $ 13,962,268 $ 14,608,674 $ 14,872,736 $ 16,205,911
51,311 65,720 68,807 85,808 92,606
401,035 415,071 415,071 616,670 683,873
315,289 344,217 345,956 477,849 411,790
202,917 296,050 252,558 316,049 329,202
201,702 254,142 489,796 684,166 764,912
188,480 214,461 249,178 258,794 253,494
107,084 107,315 140,192 171,763 155,477
56,893 405,077 93,290 95,057 148~83
133,346 128,027 432,269 146~260 185,945
2,225,401 2,974,027 2,637,870 2,725,177 2,412,869
146,574 _160,337 174,348 ___ 228,4~1 ~ 14~,5~68
17,277,604 19,326,71~ __19,908,009 20,67_~8,820 21,789,930
Expenditures:
General Government Support 3,751,469 4,395,571 4,641,568 5,177,745 5,234,683
Public SafeB~ 6,033,207 6,254,365 7,177,145 7,371,280 7,816,643
Public Healdi 32,988 33,288 33,288 32,988 35,238
Transportation 398,358 401,866 446,877 452,050 550,906
Economic Assistance & Opportunity 833,501 931,566 901,139 949,740 1,064,905
Cultm-e & Re~eation 317,769 304,07t 354,768 384,983 345,540
Home & Community Services 228,578 341,764 315,273 530,270 417,654
Employee Benefits 2,617,783 4,868,116 5,857,963 5,811,868 6,172,279
Debt Service principal & Interest 1,007,~3~8 2,104,202 . J,560,055 1,313,234 787,775
Total Expenditures
15,220,971 19,634,809 21,288,0~6 22,024,158 22,425,623
Excess (Deficiency) of Revenues Over
Expenditures
2,056,633 (308,_097)
(1,380,067) _ (l,MS,aaS) (635,69)
Operating Transfers In
Operating Transfers Out
1,392,850 2,932,574 2,642,859 2,253,944 2,738,349
(1,910,78t) (1,304,195) (1,895,023) (1,531,369) (2,403,563)
Total Other Fmancthg Somccs (Uses)
(517,931) 1,628,379 747,836 722,575 334,786
Excess (Deficiency) of Revenues and Other
Sources Over Expenditures and Other Uses
1,~}8,702 1,320,282 (632,231) (~22,763) (300,907)
Fund Balance Beginning of Year
3,7_80,709 5 31_9 41_1 6,639,693 6,007,462 5,384,699
Fund Balance End of Year
$ 5,319,411$ 6,639,693~ $ 6,007,462$ 5,384,699$ 5,083,792
Sources: Audited Financial Reports of the Town (2003-2007)
Table itself NOT audited.
A~2
Statement of Revenues, Expenditures and Fund Balance
Highway Fund
Real Property Taxes
Other Real Property Tax Items
Intergovernmental Charges
Use of Money & Property
Licenses & Permits
Sale of Property & Comp. for Loss
Miscellaneous Local Sources
State Aid
Federal Aid
Fiscal Year Ended December 31:
2003 2004 2005 2006 2007
3,513,902 $ 3,520,332 $ 3,805,032 $ 4,095.347 $ 4,027,695
6.428 3,679 9,046 12,689 12.722
15,573
18,520 23,884 77,817 t40,578 142,501
8,231 4,937 11,126 9,484 10.362
4,033 2,960 2,796 7,521 29,213
16 155,054
458,686 228,337 188,147 276,337 296,263
67,699
4,093,072 3,784,145 4,249,018 4,541,956 4,518,756
2,733, 518 2,638,121 2,913,768 3~028,076 3,437,186
97C406 415,102 500,343 515,106 510.185
15,128 22,219 178,371 283,652 17.001
3,725,052 3,075,442 3,592,482 3,826,834 3,964,372
368,020 708,703 656,536 715,122 554,384
211
(60,000) (690,390) (520.085) (452,648) (794.696)
(60,000) (690,390) (520,085) (452,648) (794,485)
308,020 18,313 136,451 262,474 (240,101 )
594,064 902,084 920,397 1,056,848 1,319.322
Expenditures:
Transportation
Employee Benefits
Debt Service
Total Expenditures
Excess (Deficiency) of Reveoues Over
Expenditures
Operating Transtbrs In
Operating Transfers Out
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues and Other
Sources Over Expenditures and Other Uses
Fund Balance Beginning of Year
Fund Balance End of Year
$ 902,084 $ 920,397 $ 1,056,848 $ 1,319,322 $ 1,079,221
Sources: Audited Financial Reports of the Town (2003-2007)
Table itself NOT audited.
A-3
Statement of Revenues, Expenditures and Changes in Fund Balance
Non-Major Governmental Funds (1)
Fiscal Year Ending December 3 I:
2003 2004 2005 2006 2007
Real Property Taxes $ 2,197,525 $ 2,506,945 $ 2,381,335 $ 2,741,362 $ 2,831.897
Other Real Property Tax Items 874 3,105 2,516 4,489 4,581
Non-Property Iax Items 117,449 336,139 213,786 229,346 234,091
Departmental Income 2,339,227 2,517,584 2,504,880 2,275,935 2,147,502
Intergovernmental Charges 1,614 1,013 1,013 1,809 905
Use of Money & Property 18,147 21,365 64,092 95,272 94,361
Licenses & Permits 139.620 199,849 165.965 163.780 169,338
Fines and Forfeitures 49.000
Sale of Property & Comp. for Loss 44,450 76,069 109,137 135,662 216,437
Miscellaneous Local Sources 230 5,025 153,591 6,652 13,283
State Aid 161,393 72,651 75,374 127,278 93,135
Federal Aid 111.299 166,368 224,136 41,163 210,175
5,180,828 5,906, I 13 5.895.825 5,822,748 6,015.705
Expenditures:
General Government Support
Public Safety
Public Health
Home & Community Services
Employee Benefits
Debt Service
134,969 92,514 99,895 103,654 87,970
749.904 739,198 807.474 869,154 948,311
6,408 6,664 6,864 7,104 7,370
3,230,201 3,225,586 3,102,639 3,363,781 3,173,114
874,049 371,038 444,858 470,377 46&989
117,562 88,803 671,720 822,590 530~796
Total Expenditures
5,113,093 4,523,803 5.133,450 5,636,660 5,216,550
Excess (Deficiency) of Revenues Over
Expenditures
67,735 1.382,310 762,375 186.088 799.155
Operating Transfers In
Operating Transfem Out
(483,500) (L081,441) (504,720) (429,145) (874,115)
Total Other Financing Sources (Uses)
(483,500) (1,081,441) (504,720) (429,145) (874,115)
Excess (Deficiency) of Revenues and Other
Sources Over Expenditures and Other Uses .~5_~5,765)
300,869 257,655 (243,057) (74,967)
Fund BaLance Beginning of Year
1,261,339 845,574 1,146,444 1,446,g49 (2) 1 203,792
Fund Balance End of Year
$ 845,574 $ 1,146,443 $ 1,404,099 $ 1,203,792 $ 1,128,832
(I) Includes the following funds: General Fund Part Town, Special Grant Fund, East-West Fire Protection Fund, Southold
District, Fishers Island Sewer District and Solid Waste Management District.
(2) Difference due to Prior Year Accounting Adjustment
Wastewater
Sources: Audited Financial Reports of the Town (2003-2007)
Table itself NOT audited.
A-4
BUDGET SUMMARY
Fund
Fiscal Year Ending December 31,2009
Appropriations Less: Less:
and Provisions Estimated Unexpended
for Other Uses Revenues Balance
Amount to be
Raised by
General $ 25,749,632
General-Outside Village 2,231,278
Highway-Townwide 4,935,705
Community Development 130,000
Risk Retention Fund 674,500
Community Preservation Fund 3,997,500
Employees Health Plan 4,098,872
Total-Town
$ 41,8_1_?,~48__7
$ 4,321,679 $ 1,262,000 $ 20,165,953
1,225,350 292,000 713,928
421,519 381,000 4,133,186
130,000 0 0
674,500 0 0
3,997,500 0 0
4,098,872 0 0
$ 14,869,420 $ 1,935,000
$ 25,013,067
Orient Road Improvement District 4,580
East-West Fire Protection District 597,863
Fishers Island Ferry District 3,412,000
Solid Waste Management District 3,997,640
Sunthold Wastewatar District 87,500
Fishers Island Sewer District 30,705
F.L Refuse & Garbage District 549,800
Orient Mosquito District 70,000
Subtotal-Special Dis~'icts $ 8,750,088
0 20 4,560
3,000 5,700 589,163
2,822,000 0 590,000
2,490,100 0 1,507,540
8,000 75,000 4,500
30,705 0 0
50,000 100,000 399,800
0 0 70,000
$ 5,4~0~,89~ $ 180,720
3,165,563
Orient-East Marion Park District 35,583
Southold Park District 315,000
Cutchogue-New Suffolk Park Dist. 145,000
Mattituck Park District 608,928
Subtotal-Park Districts $ 1,104,511
0 0 35,583
0 0 315,000
0 0 145,000
31,750 100,000 477,178
$ 31,750 $ 100,000 $
972,761
Fishers Island Fire Distri~
Orient Fire District
East Marion Fire District
Southold Fire District
Cutchogue Fire District
Mattimck Fire Distxict
Subtotal-Fire Districts
359,700
525,240
541,7t6
1,738,238
1,150,350
1,881,871
$ 6,197,115
3,300 0 356,400
60,724 0 464,516
2,000 18,750 520,966
44,200 0 1,694,038
20,000 246,750 883,600
0 0 1,881,871
130,224 $ 265,500 $ 5,801,391
Total-All Districts 16,051,714 5,565,779 546,220 9,939,715
Grand Total
$ 20,435,199
$ 2,481,220
Source: Adopted Budget of the Town.
A-5
Fund
BUDGET SUMMARY
Fiscal Year Ending December 31, 2008
Appropriations Less: Less:
and Provisions Estimated Unexpended
for Other Uses Revenues Balance
Amount to be
Raised by
Tax
General $ 24,413,069 $ 5,205,781 $ 1,816,000 $ 17,391,288
General-Outside Village 2,246,677 1,119,700 317,000 809,977
Highway Fund 5,198,627 396,032 491,000 4,311,595
Community Development 136,000 136,000 0 0
Risk Retention Fund 765,000 765,000 0 0
Commtmity Preservation Fund 5,200,000 5,200,000 0 0
Employees Health Plan 2,892,500 2,692,500 200,000 0
Total-Town $ 40,851',-877 $ 15,5~,013. $ 2,824,000 $ 22,512,860
Orient Road Improvement District 4,500
East-West Fire Protection Disixiet 552,863
Fishers Island Ferry District 3,220,775
Solid Waste Management District 4,224,695
Southold Wastewater District 102,265
Fishers Island Sewer District 30,950
FA. Refuse & Garbage District 563,800
Orient Mosquito District 86,900
Subtotal-Special Districts
$ 8,786~,~4~8
Orient-East Marion Park District 34,780
Southold Park Dislrict 315,000
Cutchogue-New Suffolk Park Dist. 145,000
Maltituck Park District 560,229
Subtotal-Park Districts $ 1,055,009
Fishers Island Fire District
Orient Fire District
East Marion Fire District
Sunthold Fire District
Cutchogue Fire District
Mattituck Fire District
Subtotal-Fire Districts
Total-All Dis~iets
359,700
483,940
536,380
1,631,025
1,412,000
1,978,770
6,40~815_
16,243,572
57,095,445
0 0
5,000 6,400 541,463
2,630,775 0 590,000
2,640,350 77,400 1,506,945
9,020 90,000 3,245
30,700 250 0
0 0 563,800
0 0 86,900
$ 5,315,845 $ 174,050 $ 3,292,353
0 0 34,780
0 0 315,000
0 0 145,000
29,000 50,000 481,229
$ 29,000 $ 50,000 $ 976,009
3,300 0
45,272 0
13,200 0
33,000 0
20,000 0
0 0
$ 114,772 $ -- 0
5,459,617 _ 224,0~0
$ 20,974,630 $ .3,~048,05~
Grand Total $
Source: Adopted Budget of the Town.
356,400
438,668
523,180
1,598,025
1,392,000
1,978,770
$ 6,287,043
10,555,405
$ 33 068,265
A-6
TOWN OF SOUTHOLD
APPENDIX B
FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2007
NOTE: SUCH FINANCIAL REPORT AND OPINIONS WERE PREPARED AS OF THE
DATE THEREOF AND HAVE NOT BEEN REVIEWED AND/OR UPDATED IN
CONNECTION WITH THE PREPARATION AND DISSEMINATION OF THIS
OFFICIAL STATEMENT. CONSENT OF THE AUDITORS HAS NOT BEEN
REQUESTED OR OBTAINED.
FINANCIAL SECTION
Independent Auditors' Report ................................................................................... 1-2
REQUIRED SUPPLEMENTARY INFORMATION
Management's Discussion and Analysis .................................................................................................. 3-11
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Assets .............................................
12
Statement of Activities ............................................................................................................................ 13
Fund Financial Statements
Governmental Fund Financial Statements
Balance Sheet and Reconciliation of the Governmental Funds Balance Sheet to
The Statement of Net Assets ............................................................................................................ 14-15
Statement of Revenues, Expenditures, and Changes in Fund Balances and
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures,
And Changes in Fund Balances to the Statement of Activities ....................................................... 16-17
Fiduciary Fund Financial Statements
Statement of Fiduciary Net Assets ......................................................................................................... 18
Notes to Financial Statements ................................. 19-36
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MANAGEMENT DISCUSSION AND
ANALYSIS
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
General Fund ....................................................................................................................................... 37
Highway Fund ...................................................................................................................................... 38
OTHER SUPPLEMENTARY INFORMATION
COMBINING FUND STATEMENTS:
Non-major Governmental Funds Combining Balance Sheet ...................................................................................................................
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ........................
DISCRETELY PRESENTED COMPONENT UNITS I
I
Discretely Presented Component Units:
Combining Statement of Net Assets ......................................................................................................
Combining Statement of Activities ........
39
4O
41
42
FINANCIAL
SECTION
25 Suffolk Court, Hauppauge, New York 11788
631.434.9500 · Fax 631.434.9518
INDEPENDENTAUDITORS'REPORT
Honorable Supervisor and Town Board
Town of Southold
Southold, New York
We have audited the accompanying financial statements of the governmental activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information of
the Town of Southold, New York, as of December 31, 2007, and for the year then ended, which
collectively comprise the Town's basic financial statements as listed in the table of contents. These
financial statements are the responsibility of the Town's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with auditing
standards generally accepted in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
matedal misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
The financial statements of the Town of Southold's discretely presented component units with the
exception of one, the Fishers Island Ferry District, were not audited as of the report date, nor were we
able to satisfy ourselves as to those financial activities by other auditing procedures. The discretely
presented component units represent 29.5%, 34.8% and 35.4%, respectively, of the assets, net assets
and revenues of the aggregate discretely presented component units. The financial statements of the
Fishers Island Ferry District were audited by other auditors whose report thereon have been furnished to
us and in our opinion, insofar as it relates to the amounts included for that one component unit, is based
solely on the reports of the other auditors.
In our opinion, except for the effects of such adjustments if any as might have been determined to be
necessary had the unaudited component units financial statements been audited and based on our audit
and the reports of other auditors, the financial statements referred to above present faidy, in all matedal
respects, the respective financial position of the governmental activities, the aggregate discretely
presented component units, each major fund and the aggregate remaining fund information of the Town
of Southold, New York, as of December 31, 2007, and the respective changes in financial position for the
year then ended in conformity with accounting principles generally accepted in the United States of
Amedca.
The Management's Discussion and Analysis and the budgetary information are not a required pad. of the
basic financial statements but are supplementary information required by accounting principles generally
accepted in the United States of Amedca. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation of the
supplementary information. However, we did not audit the information and express no opinion on it.
/id.BRECHT, VIGGIANO, ZURE:CK ~. COHPANY, P.C.
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively compdse the Town of Southold, New York's basic financial statements.. The combining and
individual fund financial statements are presented for purposes of additional analysis and are not a
required part of the basic financial statements. The combining and individual fund financial statements
have been subjected to the auditing procedures applied in the audit of the basic financial statements of
the Town of South01d, New York, and, in our opinion, is fairly presented in alt matedal respects in relation
to the basic financial statements taken as a whole.
Hauppauge, New York
October 2, 2008
-2-
REQUIRED SUPPLEMENTARY INFORMATION
Management's Discussion and Analysis
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2007
The following is a discussion and analysis of the Town of Southold's financial performance, providing an overview
of the Town's financial activities for the year ended December 31, 2007. Use this section in conjunction with the
Town's basic financial statements.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Assets and the
Statement of Activities provide information about the activities of the Town as a whole and present a longer-
term view of the Town's finances. For governmental activities, these statements tell how these services were
financed in the short term as well as what remains for future spending. Fund financial statements also report
the Town's operations in more detail than the government-wide statements by providing information about the
Town's most significant funds. The remaining statements provide financial information about activities for
which the Town acts solely as a trustee agent for the benefit of those outside of the government.
Reporting the Town as a Whole
The Statement of Net Assets and the Statement of Activities
One of the most important questions asked about the Town's finances is, "Is the Town as a whole better off or
worse off as a result of the year's activities?" The Statement of Net Assets and the Statement of Activities
report information about the Town as a whole and about its activities in a way that helps answer this question.
These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the
accounting used by most private-sector companies. The Statement of Activities is significantly different than a
typical Statement of Revenues, Expenses, and Changes in Fund Balance. You will notice that expenses are
listed in the first column with revenues from that particular program reported to the right. The result is a net
(expense)/revenue. The reason for this kind of format is to highlight the relative financial burden of each of the
functions on the Town's taxpayers. It also identifies how much each function draws from the general revenues
or if it is self-financieg through fees and grants. All of the current year's revenues and expenses are taken into
account regardless of when cash is received or paid.
These two statements report the Town's net assets and their respective changes. You can think of the Town's
net assets--the difference between assets and liabilities--as one way to measure the Town's financial health,
or financial position. Over time, increases or decreases in the Town's net assets are one indicator of whether
its financial health is improving or deteriorating. You will need to consider other non-financial factors, however,
such as changes in the Town's property tax base and the condition of the Town's buildings, roads, drainage
and other assets to assess the overall health of the Town.
In the Statement of Net Assets and the Statement of Activities, we divide the Town into two kinds of activities:
Governmental activities - The Town's basic services are reported here, including: general government
support; public safety; public health; transportation; economic assistance and opportunity; culture and
recreation and home and community services. Property taxes, sales taxes, franchise fees, fines, and
state and federal grants finance these activities. The Town also charges fees to customers to help it
cover the cost of certain services it provides.
Component units - The Town includes seven separate legal entities in its report (one ferry district, one
sanitation district, one mosquito district and four park districts). Although legally separate, these
component units are important because the Town is financially accountable for them. Complete
financial statements of the individual component units can be obtained from their respective
administrative offices (Note A).
-3-
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2007
Reporting the Town's Most Siqnificant Funds
Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds--not the Town as a
whole. Some funds are required to be established by state law and by bond covenants. However, the Town
establishes many other funds to help it control and manage sources of funding and spending related to specific
activities.
The Town's basic services are reported in governmental funds, which focus on how money flows into and out
of those funds and the balances left at year-end that are available for spending. These funds are reported
using an accounting method called modified accrual accounting, which measures cash and all other financial
assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term
view of the Town's general government operations and the basic services it provides. Governmental fund
information helps you determine whether there are more or fewer financial resources that can be spent in the
near future to finance the Town's programs. We describe the relationship (or differences} between
governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and
governmental funds in a reconciliation that follows these fund financial statements.
The Town as Trustee
Reportinq the Town's Fiduciary Responsibilities
All of the Town's fiduciary activities are reported in a separate Statement of Fiduciary Net Assets. We exclude
these activities from the Town's other financial statements because the Town cannot use these assets to
finance its operations. The Town is responsible for ensuring that the assets reported in these funds are used
for their intended purposes.
FINANCIAL ANALYSIS OF THE TOWN AS A WHOLE
Our analysis below focuses on the net assets and changes in net assets of the Town's governmental activities_
Condensed Statement of Net Assets
Primary Governmental Activities
December 31, 2007 and 2006
2007 2006
Assets
Current and other assets $ 43,347,669 $ 23;769,534
Capital assets 109,728,421 100,557,312
Total assets 153,076,090 124,326,846
Liabilities
Current and other liabilities 24,314,029 15,552,211
Long~term liabilities 28,413,510 14,773,434
Total liabilities 52,727,539 30,325,645
Net assets
Invested in capital assets,
net of related debt 83,294,421 84,334,214
Restricted:
Land acquisition 13,909,980 6,864,987
Debt service 79,339 17,572
Unrestricted 3,064,811 2,784,428
Total net assets $ 100,348,551 $ 94,00t,201
TOWN OF SOUTHOLD ,
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2007
FINANCIAL ANALYSIS OF THE TOWN AS A WHOLE (continued)
Total assets in the Town as of December 31, 2007 were $153 million, an increase of $28.7 million. Total
liabilities as of December 31, 2007 were $52.7 million, which represents an increase of $22.4 million from
December 31-, 2006. This results in a net asset balance of $100.3 million, an increase of $6.3 million. Of the
Town's net asset balance $83.2 million were invested in capital assets, net of related debt; $14 million was
restricted for future land acquisition and payments on debt service while $3 million was unrestricted.
Changes in Net Assets
Primary Governmental Activities
for the years ended December 31, 2007 and 2006
Program Revenues
Charges for services
Operating grants and contributions
Capital grants and contributions
General Revenues Real property taxes
Other real property tax items
Non-property tax items
Interest earnings
State aid - unrestricted
Other
2007 2006
Total Revenues
Program Expenses
General government support
Public safety
Public health
Transportation
Economic assistance and opportunity
Culture and recreation
Home and community services
Interest on debt
Total Expenses
Increase in Net Assets $
3,260,873 $ 3,407,682
842,604 713,597
2,121,558 4,834,716
6,225,035 8,955,995
23,065,503 21,709,445
109,909 102,986
6,989,400 6,669,730
1,502,349 1,233,122
2,293,295 2,610,189
930,666 463,671
34,891,122 32,789,143
41,116,157 41,745,138
7,020,895 6,843,661
12,358,296 11,421,283
46,146 43,499
6,980,032 7,298,698
1,506,488 1,354,610
629,d44 713,164
5,390,045 4,912,384
837,461 553,713
34,768,807 33,141,012
6,347,350 $ 8,604,126
-5-
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2007
FINANCIAL ANALYSIS OF THE TOWN AS A WHOLE (continued)
Total Cost of Services
Pdmary Governmental Activities
for the year ended December 31, 2007
General government support
Public safety
Public health
Transportation
Economic assistance and opportunity
Culture and recreation
Home and community services
Interest on debt
Total Cost
of Services
$ 7,020,895
12,358,296
46,146
6,980,032
1,506,488
629,'!.44
5,390,045
837,461
$ 34,768,807
Net Cost of Services
Primary Governmental Activities
for the year ended December 31, 2007
General government support
Public safety
Public health
Transportation
Economic assistance and opportunity
Culture and recreation
Home and community services
Interest on debt
Total Cost Program Net Cost
of Services Revenues of Services
$ 7,020,895 $ 322,350 $ 6,698,545
12,358,296 675,103 11,683,193
46,146 10,316 35,830
6,980,032 355,337 6,624,695
1,506,488 438,810 1,067,678
629,444 185,682 443,762
5,390,045 4,237,437 1,152,608
837,461 837,461
$ 34,768,807 $ 6,225,035 $28,543,772
The cost of all governmental activities this year was $34.8 million. The net cost of these services, however,
after subsidized by program revenues including charges for services and program grants, was $28.5 million.
The Town's change in net assets after general revenues of $28.8 million was an overall increase of $6.3
million.
-6-
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31,2007
FINANCIAL ANALYSIS OF THE TOWN AS AWHOLE continued)
$14,000,000 1
I Expenses and Program Revenues
Governmental Activities
,$12,000,000
[] Expenses
$10,000~000 · Program Revenues
$8,000,000
$4,000,000
$2,000,000
State aid -
unrestricted
6%
Revenue by Source
Governmental Activities
for the year ended December 31, 2007
Real property taxes
State aid - unrestricted
Charges for services
Other general revenues
Operating grants and contributions
Capital grants and contributions
$ 23,065,503
2,293,295
3,260,873
9,532,324
842,604
2,121,558
$41,116,157
-7-
TOWN OF SOUTHOED
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2007
FINANCIAL ANALYSIS OF THE TOWN AS A WHOLE (continued)
THE TOWN'S FUNDS
The general fund balance has decreased by approximately $300,000 due primarily to actual expenditures in
excess of revenues.
The following schedule presents a summary of the governmental funds - (general, special revenue, and
capital projects) revenues and expenditures for the year ended December 31, 2007, and the amount of
change and percentage of total in relation to the prior year.
Increase %
2007 2006 (Decrease) Change
REVENUES
Real property taxes
Other real property tax items
Non-property tax items
Departmental income
Intergovernmental charges
Use of money and property
Licenses and permits
Fines and forfeitures
' Sale of property and compensation for loss
Miscellaneous local sources
State aid
Federal aid
Total Governmental Fund Revenues
EXPENDITURES
General government support
Public safety
Public health
Transportation
Economic assistance and opportunity
Home and community services
Culture and recreation
Employee benefits
Capital
Debt service principal and interest
Total Governmental Fund Expenditures
23,065,503 $ 21,709,041 $ 1,356,462 5.9%
109,909 102,986 6,923 6.3%
917,964 846,016 71,948 7.8%
2,559,292 2,753,784 (194,492) -7.6%
6,401,543 6,142,177 259,366 4.1%
1,650,001 1,376,729 273,272 16.6%
433,194 432,058 1,136 0.3%
155,477 171,763 (16,286) -10.5%
393,933 238,240 155,693 39.5%
487,582 303,912 183,670 37.7%
3,696,346 7,108,866 (3,412,520) -92.3%
1,280,709 595,604 685,105 53.5%
$ 41,151,453 $ 41,781,176 $ (629,723) -1.5%
5,322,653 $ 5,281,399 $ 41,254 0.8%
8,764,954 8,240,434 524,520 6.0%
42,608 40,092 2,516 5.9%
3,988,092 3,480,126 507,966 12.7%
1,064,905 949,740 115,165 10.8%
3,518,654 3,748,764 (230,110) -6.5%
417,654 530,270 (112,616) -27.0%
7,151,453 6,797,351 354,102 5.0%
12,436,627 13,324,188 (887,561) -7~1%
1,622,942 2,504,007 (881,065) -54.3%
$ 44,330,542 $ 44,896,371 $ (565,829) -1.3%
GENERAL FUND BUDGETARY HIGHLIGHTS
Over the course of the year the Town Board revises the budget as needed so that expenditures do not exceed
appropriations. In all Town funds, various transfers between appropriations were approved for this purpose.
-8-
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2007
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
As of December 31, 2007 the Town had $109.7 million in net capital assets including land, buildings,
improvements, machinery and equipment, and infrastructure. The Town's component units had $22.1 million
in net capital assets including land, buildings, improvements, machinery and equipment, and sewer mains.
Capital Assets at December 31,
Primary qovernment Land
Construction in progress
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total capital assets
Less accumulated depreciation
Primary government - Total net capital assets
Component units Land
Construction in progress
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total capital assets
Less accumulated depreciation
Component units - Total net capital assets
2007 2006
$ 68,929,202 $ 58,341,517
1,067,738 220,114
8,316,323 8,307,223
13,624,650 13,618,159
t0,197,793 9,916,143
71,461,368 70,694,655
173,597,074 161,097,811
63,868,653 60,540,499
$ 109,728,421 $ 100,557,312
2,193,353 $ 2,213,759
404,367 12,947,081
3,500,910 3,566,885
17,028,469 3,220,732
3,504,995 3,320,899
2,172,080 2,145,280
28,804,174 27,414,636
6,702,685 6,074,572
$ 22,101,489 $ 21,340,064
-9-
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31,2007
CAPITAL ASSET AND DEBT ADMINISTRATION (continued)
Capital Assets (continued)
The capital program is a long range financing guide and not a definitive plan. Each appropriation must be
authorized by Town Board resolution before being undertaken. Each may be financed by issuance of general
obligation bonds, which, at times, are preceded by issuance of bond anticipation notes for various periods of
time depending on the probable usefulness of the purpose of expenditure. The following sets forth a summary
of the Town's capital program.
Equipment 2008
General Fund $ 258,600
Highway Fund 110,000
Special Districts 689,000
Total Equipment $ 1,057,600
Improvements
General Fund $ 6,469,328
Special Districts 1,500,000
Total Improvements $ 7,969,328
Total Program
$~
Additional information on the Town's capital assets can be found in Note C.3 to the financial statements.
Debt Administration
The Town of Southold's bond credit rating from Moody's Investors Services was Aa2 as of December 31,
2007.
Debt Limit - The Town has the power to contract indebtedness for any Town purpose so long as the principal
amount thereof, subject to certain limited exceptions, shall not exceed seven percent of the average full
valuation of taxable real estate of the Town, and subject to certain enumerated exclusions and deductions
such as water and certain sewer facilities and cash or appropriations for current debt service.
The constitutional method for determining full valuation is calculated by taking the assessed valuation of
taxable real estate as shown upon the latest completed assessment roll and dividing the same by the
equalization rate as determined by the State Board of Equalization and Assessment. The State Legislature is
required to prescribe the manner by which such ratio shall be determined. Average full valuation is
determined by taking the sum of the full valuation of the last completed assessment roll and the four preceding
assessment rolls and dividing such sum by five. Percentage of debt contracting power exhausted at December
31, 2007 was 4.41%.
At December 31, 2007, the Town had approximately $25.0 million in long term general obligation bonds
outstanding, of which $22.4 million was for general Town purposes. Also outstanding at year-end were bond
anticipation notes in the amount of $6.2 million of which $4.4 million was for general Town purposes.
Additional information on the Town's debt activity can be found in Note C.4 to the financial statements.
-10-
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2007
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
property Tax
The Town has adopted a budget for the 2008 fiscal year which factors in inflation and other adjustments to
revenues and expenditures as well as prior year positive and negative fund balances. The 2008 budget
includes an overall increase in real property tax revenues from the prior year of approximately 6.45% for the
general Town governmental activities.
State Aid and Local Assistance
The Town receives financial assistance from New York State and from Suffolk County. During 2007, financial
assistance included state aid consisting of mortgage tax of $2.3 million, consolidated highway aid of $296
thousand, and other state aid of approximately $794 thousand. State aid per capita was $93 thousand and
County local government assistance was $286 thousand. Additionally, if the State should not adopt its budget
in a timely manner, municipalities and school districts in the State, including the Town, may be affected by a
delay in the payment of state aid. The State is not constitutionally obligated to maintain or continue state aid
to the Town. The Town's 2008 budget included similar amounts for this financial assistance.
Retirement System
In 2003 the Town of Southold adopted the New York State Early Retirement Incentive Program as authorized
by Chapter 69 of the Laws of 2002. The option to retire early ran through December 31, 2002. The eligibility
vaded based on tier, age and years of service, but all options required that the employees be at least fifty (50)
years of age and being vested in the New York State Retirement System. The Town funds it retirement billing
currently.
As part of its contractual agreements with the unions, the Town of Southold also offers fully paid health
insurance benefits (but not welfare benefits) for the retiree and their present spouse until death of the retiree.
CONTACTING THE TOWN'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and creditors with a general
overview of the Town's finances and to show the Town's accountability for the money it receives. If you have
questions about this repod or need addifional financial information, contact the Town of Southold, Office of the
Town Comptroller, Southold, New York.
-11-
BASIC FINANCIAL
STATEMENTS
TOWN OF SOUTHOLD
GOVERNMENT-WIDE FINANCIAL STATEMENT
STATEMENT OF NET ASSETS
December 31, 2007
ASSETS
Current Assets:
Cash and investments
Cash - restricted
Accounts receivable
Due from fiduciary funds
Due from other governments
Due from primary government
State and federal aid receivables
Prepaid charges
Inventory of material and supplies
Total Current Assets
Non-Current Assets:
Deferred charges, net of accumulated amortization
Non-depreciable capital assets
Depreciabie capital assets, net of depreciation
Total Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities:
Accounts payable and accrued liabilities
Accrued interest payable
Bond anticipation notes payable
Due to other governments
Due to fiduciary funds
Unearned revenue
Non-current liabilities due within one year
General obligation bonds payable
Claims and judgments payable
Estimated liability for landfill closure
and postclosure care costs
Total Current Liabilities
Non-Current Liabilities:
General obligation bonds payable
Compensated absences
Claims and judgments payable
Estimated liability for landfill closure
and postctosure care costs
Total Non-Current Liabilities
Total Liabilities
NET ASSETS
Investment in capital assets, net of related debt
Restricted:
Land acquisition
Debt service
U nrestricted
Total Net Assets
Primary
Governmental Component
Activities Units
27,003,180 $ 1,522,506
13,554,395
182,338 78,621
1,225,741
204,613
1,048,627
1,275
677,898
1,522,644
51,490
43,220,169 3,853,159
127,500
69,996,940 2,597,720
39,731,481 19,503,769
109,855,921 22,101,489
153,076,090 25,954,648
1,424,589 1,390,469
254,675 64,461
4,384,000 1,860,000
9,569,319
25,484
7,150,302 647,023
1,495,000 200,000
50,000
10,660
24,314,029 4,211,953
20,870,000 2,455,000
6,971,397
100,000
572,113
28,413,510 2,555,000
52,727,539 6,766,953
83,294,421
13,909,980
79,339
3,064,811
$100,348,551
17,132,809
2,756
2,052,130
$ 19,187,695
See notes to the financial statements.
FunctioWPro~fam
PRIMARY GOVERNMENT
Government Aclivities:
General government suppolt
Public safe[y
Public health
Transportation
TOWN OF SOUTHOLD
GOVERNMENT-WIDE FINANCIAL STATEMENF
STATEMENT OF ACTIVITIES
Year ended December 31, 2007
Change in Nel Assets
Primary Component
Government Units
7,020,895 $ 210,585 $ 111,705 $ 6,698,545
48,146 10,316 35,830
6,980,032 39,074 20,000 $ 296,283 6,624,695
1,508,488 184,273 254,537 1,067,678
629,444 185,682 443,762
5,390,045 2,097,448 314,694 1,825,295 1,t52,608
837,461 837,461
34,768,807 $ 3,260,873 $ 842,804 $ 2,121,558 $ 28,543,772
$ 2,546,987
51,400
$ 1,220,744
4,825,592 · $ 2,598,387 .$ -0- $ 1
GENERAL REVENUES
Real property taxes
Olher real proper[y [ax Items
Non-property tax ilems
Interest earnings
State aid - unreslrlcted
Other
Tolal General Revenues
Change in Net Assets
Net Assets at Beginning of Year
Net Assets at End of Year $ 100,348,551
$ 193,250
(g47,851)
893,070
598,053
$ %006,461
$ 23,085,503 $ 2,142,757
10§,909 2,802
6,989,400 g0,558
1,502,349 96,097
2,293,295 616,~39
930,060 65,498.
34,891,122 3,013,851
6,347,350 2.007,390
94,001,201 17,180,305
19,187,695
TOWN OF SOUTHOLD
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2007
ASSETS
Cash and Investments
Cash - restricted
Accounts Receivable
Due from Other Funds
State and Federal Aid Receivable
Due from Other Governments
Supply Inventory
Prepaids
Total Assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable
Retained Percentages
Bond Anticipation Notes Payable
Due to Other Funds
Due to Trust Funds
Due to Other Governments
Deferred Revenue
Total Liabilities
FUND BALANCE
Fund Balances - Reserved:
Encumbrances
Supply Inventory
Prepaids
Community Preservation
Land Acquisition
Debt Service
Fund Balance - Unreserved:
Designated - Ensuing Year's Budget
Insurance Claims
Non-Major Special Revenue Funds
Undesignated
Total Fund Balance
Total Liabilities and Fund Balance
MAJOR GOVERNMENTAL FUNDS Non-Major
Capital Governmental
General Highway Projects Funds
Totals
$ 21,437,689 $ 1,193,195 $ 3,305,435 $ 1,066,861 $ 27,003,180
13,554,395 13,554,395
17,263 11,906 153,169 182,338
74,500 1,260,522 126,342 902,933 2,364,297
62,377 100,000 42,236 204,613
826,834 398,907 1,225,741
1,275 1,275
460,951 52,151 48,546 561,648
$ 2,213,745 $ 45,097,487
$ 22,880,889 $ 2,505,868 $ 17,496,985 ~ =
$ 830,531 $ 146,552 $ 195,162 $ 222,172 $ 1,394,417
30,172 30,172
4,384,000 4,384,000
2,305,222 27,090 31,985 2,364,297
25,484 25,484
9,569,319 9,569,319
5,066,541 1,253,005 830,756 7,150,302
17,797,097 1,426,647 4,609,334 1,084,913 24,917,991
193,041 25,770 218,811
1,275 1,275
460,951 23,315 484,266
10,890,710 10,890,710
3,019,270 3,019,270
79,339 79,339
1,816,000 491,000 2,307,000
588,614
588,614 323,400 323,400
2,023,911 588,221 (1,101,668) 756,347 2,266,811
5,083,792 1,079,221 12,887,651 1,128,832 20,179,496
$ 22,880,889 $ 2,505,868 $ 17,496,985 $ 2,213,74_ 5 $ 45,097,487
See notes to the financial statements.
-14-
TOWN OF SOUTHOLD
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE
STATEMENT OF NET ASSETS
December 31,2007
Total Fund Balances - Governmental Funds
Amounts reported for governmental activities in the
Statement of Net Assets are different because:
Capital assets less accumulated depreciation are
included in the Statement of Net Assets:
Capital assets - non-depreciable
Capital assets - depreciable
Accumulated depreciation
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are deferred in the funds
Long-term liabilities applicable to the Town's
governmental activities are not due and payable
in the current period and accordingly are not
reported in the funds. However these liabilities
are included in the Statement of Net Assets:
General obligation bonds payable
Compensated absences
Estimated liability for landfill closure
and postclosure care costs
Prepaid items included in the Statement of Net Assets
Deferred charges, included in the Statement of Net Assets
Interest payable applicable to the Town's governmental
activities are not due and payable in the current period
and accordingly are not reported in the funds. However
these liabilities are included in the Statement of Net Assets.
Net Assets o¢ Governmental Activities
$ 69,996,940
1 O3,6O0,134
(63,668,653)
$ (22,365,000)
(6,971,397)
(582,773)
20,179,496
109,728,421
(29,919,170)
486,979
127,500
(254,675)
$ 100,348,551
See notes to financial statements.
-15-
TO~I OF SOUTHOLD
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the year ended December 31, 2007
MAJOR GOVERNMENTAL FUNDS
Capital
General Highway Projects
REVENUES
Real Property Taxes $16,205,911 $4,027,695
Other Real Property Tax Items 92,606 12,722
Non-Property Tax Items 683,873
Departmental Income 411,790
Intergovernmental Charges 329,202
Use of Money and Property 764,912 142,501
Licenses and Permits 253,494 10,362
Fines and Forfeitures 1551477
Sale of Property and Compensation for Loss 148,283 29,213
Miscellaneous Local Sources 185,945
State Aid 2,412,869 296,263
Federal Aid 145,568
$ 6,071,436
648,227
288,354
894,079
924,966
Non-Major
Governmental
Funds Totals
$2,831,897 $ 23,065,50:
4,581 109,90!
234,091 917,9~
2,147,502 2,559,29;
905 6,401,54;
94,361 1,650,00'
169,338 433,19,
155,4~
216,437 393,93:
13,283 487,58
93,135 3,696,34
210,175 1,280,70
Total Revenues 21,789,930 4,518,756 8,827,062 6,015,705 41,151,45
EXPENDITURES
Current:
General Govemment Support
Public Safety
Public Health
Transportation
Ecenoroic Assistance and Opportuniiy
Home and Community Services
Culture and Recreation
Employee Benefits
Capital Outlay
Debt Service:
Principal
interest
Total Expenditures
Excess (DeBciency) of Revenues Over
Expenditures
Other Financing Sources (Uses)
Debt Proceeds
Transfers In
Transfers Out
Tota~ Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances at Beginning of Year
Fund Balances at End of Year
5,234,683 87,970 5,322,65
7,816,643 948,311 8,764,95
35,238 7,370 42,60
550,906 3,437,186 3,988,09
1,064,905 1,064,96
345,540 3,173,114 3,518,6~
417,654 417,6~
6,172,279 510,185 468,989 7,151,4~
12,436,627 12,436,62
543,040 236,058 779,0~
244,735 17,001 287,370 294,738 843.8z
22,425,623 3,964,372 12,723,997 5,216,550 44,330,5z
(635,693) 554,384 (3,896.935) 799,155 (3,179,0~
14,650,000 14,650,0(
2,738,349 211 1,333,814 4,072,3;
(2,403,563) (794,696) (874,115) (4,072,3;
334,786 (794,485) 15,983,814 (874,115) 14,650,0(
(300,907) (240,101) 12,086,879 (74,960) 11,470,9'
5,384,699 1,319,322 800,772 1,203,792 8,708,5l
$ 5,083,792 $1,079,221 $ 12,887,651 $1,128,832 $ 20,179,4f
See notes to the financial statements.
-16-
TOWN OF SOUTHOLD
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITUREs AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
For the year ended December 31, 2007
Net Change in Fund Balance
Governmental funds report capital outlays as expenditures. However, in
the Statement of Activities the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense. The amount
by which capital outlay exceeds depreciation in the current period is:
Capital outlay
Depreciation expense
Loss on dispositions
$13,193,594
(4,005,790)
(16,695)
Some expenses reported in the Statement of Activities do not require
the use of current financial resources and therefore, are not reported as
expenditures in governmental funds:
Prepaid charges
Deferred charges
The issuance of tong-term debt and increase in obligations under capital
leases provides current financial resources to governmental funds, while the
repayment of the principal of long term debt and capital leases consumes
the current financial resources of governmental funds.
Neither transaction has any effect on net assets.
Bonds issued
Repayment of bond principal
Due to Employees Retirement System
Compensated absences
Estimated liability for landfill closure
and postclosure care costs
Accrued interest payable
$ 11,470,911
9,171,109
27,481
(21,250)
(14,650,000)
779,098
48,804
(495,736)
10,550
6,383
Change in Net Assets of Governmental Activities
$ 6,347,350
See notes to financial statements.
-17-
TOWN OF SOUTHOLD
STATEMENT OF FIDUCIARY NET ASSETS
December 31, 2007
ASSETS
Cash and investments
LIABILITIES
Other liabilities
Deposits held
Total Assets
Total Liabilities
Fishers Island
Town Ferry District Totals
$ 5,718,965 $ 34,367 $ 5,753,332
$ 5,718,965 $ 34,367 $ 5,753,332
$ 4,861,089 $ 34,367 $ 4,895,456
857,876 857,876
$ 5,718,965 $ 34,367 $ 5,753,332
See notes to financial statements.
-18-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31,2007
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Town of Southeld (the "Town"), which was established in 1640, is governed by Town Law and other
general laws of the State of New York and vadous local laws. The Town Board is the legislative body
responsible for overall operations. The Town Board consists of the Supervisor who is elected for a term
of four years and five council members who are elected for terms of four years. The Town Board appoints
the Town Attorney, Comptroller and the Commissioner of Public Works whose terms are fixed by Town
Law. The Town Clerk, Receiver of Taxes, Superintendent of Highways, Justices and Town Trustees are
all elected and serve for four years, respectively. The Town provides a full range of municipal services,
including public safety, transportation, home and community services, public works and road
maintenance, recreation and parks, and general and administrative services.
The financial statements of the Town of Southold have been prepared in conformity with accounting
principles generally accepted in the United States of America (GAAP) as applied to governmental units.
The Governmental Accounting Standards Board (GASB) is the accepted standard se~ing body for
establishing governmental accounting and financial reporting principles.
The more significant of the government's accounting policies are described below.
REPORTING ENTITY
The financial reporting entity consists of: (a) the primary government, which is the Town of
Southold; (b) organizations for which the primary government is financially accountable; and (c)
other organizations for which the nature and significance of their relationship with the primary
government are such that exclusion would cause the reporting entity's financial statements to be
misleading or incomplete as set forth in GASB Statement No. 14.
The decision to include a potential component unit in the Town of Southeld reporting entity is based
on several criteria set forth in GASB Statement No. 14 including legal standing, dependency and
financial accountability. Based on the application of these criteria, the following is a summary of
certain entities considered in determining the Town of Southeld's reporting entity.
Certain special districts of the Town of Southold provide sanitation, ferry, and park services to
residents and businesses within the districts. These special districts are organized under New
York State Town law and have separately elected boards. Special disb'icts cannot issue bonded
debt without the approval and the backing of the full faith and credit of the Town. Tax levies of the
special districts are collected by the Town Receiver of Taxes. As a result of this fiscal dependency,
the Town is financially accountable for these special districts. Accordingly, these special districts
have been determined to be component units of the Town and are presented discretely in a
separate column in the combined financial statements to emphasize that they are legally separate
from the primary government.
BASIS OF PRESENTATION
The Town's basic financial statements include both government-wide (reporting the Town as a
whole) and fund financial statements (reporting the Town's major funds).
Government-wide Financial Statements
The government-wide financial statements reports information on the Town as a whale, except
fiduciary activities, with separate columns for the primary governmental activities as well as the
discretely presented component units.
In the government-wide Statement of Net Assets, the Town's governmental activities are
presented on a consolidated basis and are reported on a full acerual, economic resource basis,
which recognizes alt long-term assets and receivables as well as long-term debt and obligations.
The Town's net assets are reported in three parts--investments in capital assets, net of related
debt; restricted net assets; and unrestricted net assets.
-19-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31,2007
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2. BASIS OF PRESENTATION (continued)
The government-wide Statement of Activities repods both the gross and net cost of each of the
Town's functional categories (public safety, transpodation, home and community services, etc.),
which are otherwise supported by general government revenues (property, sales and use taxes,
certain intergovernmental revenues, fines, permits and charges, etc.). The Statement of
Activities reduces gross expenses (including depreciation), by related program revenues and
operating and capital grants, to produce the net cost of each program. Program revenues
include (a) charges for services and (b) operating and capital grants and contributions that are
directly associated with the function. Operating grants include operating-specific and
discretionary (either operating or capital) grants while the capital grants column reflects capital-
specific grants. The net costs (by function) are normally covered by general revenue (property
taxes, intergovemmental revenues, interest income, etc). As a general rule the effect of
interfund activity has been eliminated in general purpose financial statements.
This government-wide focus is more on the sustainability of the Town as an entity and the
change in the Town's net assets resulting from the current year's activities.
Fund Financial Statements
The fund financial statements are similar to the financial statements presented in the previous
mede[. The new emphasis is on the major funds in the fund financial statements. Non-major funds
are summarized into a single column.
The accounts of the Town are organized on the basis of funds, each of which is considered a
separate accounting entity. The operations of each fund are accounted for with a separate set of
self-balancing accounts that comprise its assets, liabilities, fund balances, revenues, and
expenditures, which are segregated for the purpose of carrying on specific activities or attaining
certain objectives in accordance with special regulations, restrictions or limitations. The vadous
funds are presented by type in the fund financial statements. Accordingly, the Town maintains the
following fund types:
Govemmental Funds - Governmental funds are those through which most governmental
functions are financed. The acquisition, use and balances of expendable financial resources and
the related liabilities are accounted for through governmental funds. The measurement focus of
the governmental funds is upon determination of financial position and changes in financial
position. Governmental funds are further classified as major and non-major funds.
The Town' reports the following major governmental funds:
General Fund - is the principal operating fund of the Town. This fund is used to account for all
financial resources except those required to be accounted for in other funds.
Highway Funds - used to account for the maintenance and operation of highways.
Capital Projects Fund - used to account for financial resources to be used for the acquisition
or construction of major capital facilities (other than those financed by special assessment
funds and trust funds).
- 20 -
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2. BASIS OF PRESENTATION (continued)
Fund Financial Statements (continued)
Additionally, the Town reports the following non-major funds:
Special Revenue Funds - are used to account for the proceeds of specific revenue sources (other
than major capital projects) that are legally restricted to expenditures for specified purposes.
Special Revenue Funds include the following:
General Fund Part Town - To provide general services outside the Village of Greenport.
Special Grant Fund - Segregate and account for projects funded by Community
Development revenue.
Special District Funds - To provide special services to areas that encompass less than the
whole town.
Fiduciary Funds - Fiduciaw Funds are used to account for assets held by the Town in a trustee
or custodial capacity.
Agency Fund - is for money (and/or property) received and held in the capacity of trustee,
custodian or agent.
Discretely Presented Component Units
Certain special districts that have separately elected boards provide transportation, park, mosquito
control, and sanitation services to residents and businesses within these districts, and follow
government fund accounting principles. These districts, which are accounted for as discretely
presented component units, are as follows:
The Fishers Island Ferry District, established in 1947
Orient Mosquito District, established in 1916
Fishers Island Garbage and Refuse District, established in 1952
Cutchogue-New Suffolk Park District, established in 1953
Orient-East Marion Park District, established in 1969
Southotd Park District, established in 1907
Mattituck Park District, established in 1941
Complete financial statements of these component units can be obtained from their respective
administrative offices:
Orient Mosquito District
145 Platt Road
Orient, NY 11957
Cutchogue-New Suffolk
Park District
P.O. Box 311
Cutchogue, NY 11935
Southold Park District
P.O. Box 959
Southold, NY 11971
Fishers Island Ferry District
P.O_ Box 1179
Southold, NY 11971
Fishers Island Garbage
& Refuse District
Fishers Island, NY 06390
Orient-East Marion
Park District
P.O. Box 12
Orient, NY 11957
Mattituck Park District
P.O. Box 1413
Mattituck, NY 11952
-21 ~
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
BASIS OF ACCOUNTING/MEASUREMENT FOCUS
Measurement focus refers to what is being measured whereas the basis of accounting refers to
when revenues and expenditures are recognized in the accounts and repealed in the financial
statements. Basis of accounting relates to the timing of the measurement made, regardless of the
measurement focus applied.
In the government-wide statements, governmental activities are presented using the economic
resources measurement focus and are presented using the accrual basis of accounting. Under the
accrual basis of accounting, revenues are recognized when earned and expenses are recorded
when the liability is incurred or economic asset used. Revenues, expert§es, gains, losses, assets,
and liabilities resulting from exchange and exchange-like transactions are recognized when the
exchange takes place.
~n the funds statements, governmental funds use a current financial resources measurement focus
and are accounted for using the modified accrual basis of accounting. Under the modified accrual
basis of accounting, revenues are recognized when susceptible to accrual (measurable and
available to finance current operations). "Measurable" means the amount of the transaction can be
determined and "available" means collectible within the current pedod or soon enough thereafter to
pay liabilities of the current period. The Town considers all revenues available if they are collected
within 60 days after the year end. Revenues susceptible to accrual include Suffolk County local
assistance at year end on behalf of the Town, franchise fees, and charges for services,
intergovernmental revenues and operating transfers. Permits, fees, and other similar revenues are
not susceptible to accrual because generally they are not measurable until they are received in
cash. In those instances where expenditures are the prime factor in determining eligibility for state
and federal grants, revenues are recognized when the expenditure is incurred. In the Capital
Projects Fund, long-term debt is recognized as revenue upon receipt of the proceeds.
Expenditures are recorded on the accrual basis except that (a) expenditures for prepaid expenses
are recognized when incurred; (b) principal and interest on indebtedness are recognized as
expenditures when due; (c) compensated absences, such as vacation and sick leave, which vest or
accumulate, are charged as expenditures when paid.
Encumbrance accounting, under which purchase orders, contracts and other commitments are
recorded for budgetary control purposes in order to reserve that portion of the applicable
appropriation, is employed in the governmental funds. Appropriations for all governmental funds
except the capital projects fund lapse at year-end. However, encumbrances reserved against fund
balances are re-appropriated in the ensuing year. Encumbrances are reported as reservations of
fund balances since they do not constitute expenditures or liabilities. Expenditures for such
commitments are recorded in the period in which the liability is incurred.
4. ASSETS, LIABILITIES AND FUND EQUITY
CASH AND CASH EQUIVALENTS
Cash consists of funds deposited in demand accounts, time deposit accounts and certificates of
deposit with maturities of less than three months.
For purposes of the Statement of Cash Flows, the Town considers all highly liquid investments with
a maturity when purchased of three months or less and all local government investment pools to be
cash equivalents.
RESTRICTED ASSETS
Certain assets of the Capital Projects including Community Preservation are classified as restricted
assets because their use is resthcted by contractual agreements and regulations.
- 22 -
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
5o
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
4. ASSETS, LIABILITIES AND FUND EQUITY (continued)
RECEIVABLES
Receivables include amounts due from Federal, State, and other governments or entities for
services provided by the Town. Receivables are recorded and revenues recognized as earned or
as specific program expenditures are incurred.
INVENTORY - MATERIALS AND SUPPLIES
inventory in the general and special revenue funds is valued at cost. Inventory in these funds is
accounted for under the consumption method.
CAPITAL ASSETS
Capital assets purchased or acquired with an original cost of $5,000 or more are reported at
historical cost or estimated historical cost. Contributed assets are reported at fair market value
as of the date received. Additions, improvements and other capital outlays that significantly
extend the useful life of an asset are capitalized. Other costs incurred for repairs and
maintenance are expensed as incurred. Depreciation on all assets is provided on the straight-
line basis over the following estimated useful lives:
Buildings
Improvements and other
Machinery and equipment
infrastructure
10~,0 years
20 years
5-10 years
20-30 years
Infrastructure assets, consisting of certain improvements other than buildings including roads,
curbs, sidewalks, bridges and street lighting are capitalized along with other capital assets.
In the fund financial statements, capital assets are recorded as capital outlay expenditures in the
governmental fund upon acquisition.
DEFERRED REVENUE/UNEARNED INCOME
Deferred revenues/unearned income are those where asset recognition cdteria have been met, but
which revenue recognition criteria have not been met. Such amounts include collections in
advance, unearned income and amounts that have been deemed to be 'measurable~ but not
"avaitable" to finance current expenses pursuant to generally accepted accounting principles.
PREPAIDS
Prepaids record payments to vendors that benefit future recording periods and are reported on the
consumption basis. Prepaids in the general and special revenue funds represent insurance
premiums paid for coverage that will benefit the subsequent period and for retirement benefits that
will benefit a future period_
LONG-TERM OBLIGATIONS
The liabilities for long-term obligations consisting of general obligation bends, compensated
absences, due to employee retirement system, judgments, claims and liability for landfill closure
and post closure costs are recognized in the government-wide financial statements.
In the fund statements, long-term obligations are not reported as liabilities. The debt proceeds
are reported as other financing sources and payment of principal and interest reported as
expenditures.
REVENUES AND EXPENDITURES
REAL PROPERTY TAX ASSESSMENT AND COLLECTION PROCEDURES
In Suffolk County, the assessment and lien of real property for taxation is done by the County
Department of Assessment. Real property taxes become a lien on December 'rd for beth school and
general taxes. The Town's assessment rolls are used for the levy of real property taxes by the
Town and the School Districts, as well as by the County and by Special Districts of the County and
the Town.
- 23 -
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
5. REVENUES AND EXPENDITURES (continued)
REAL PROPERTY TAX ASSESSMENT AND COLLECTION PROCEDURES (continued)
The Town of Southold Receiver of Taxes collects alt real property taxes for the Town, Suffolk
County, Town Special Districts and School Districts. These taxes are levied on December 1, and
are due in two installments, 50% on December 1 and 50% on May 10, payable without penalty to
January 10 and May 31, respectively. Penalties are imposed thereafter at the rate of one-twelfth of
the rate of interest determined by the State Commissioner of Taxation and Finance, after which
taxes are payable to the County Treasurer. The Town retains the total amount of Town, Highway
and Town Special Districts levies from the amount collected, and forwards the balance collected to
the County which assumes collection responsibility. The Town and Town's Special Districts
therefore realize annually the 100% collection of real property taxes.
School District property taxes are also levied on December 1, and are also payable in two
installments. School property taxes are due in two installments, 50% on December 1 and 50% on
May 10 payable without penalty to January 10 and May 31, respectively. The County is also
responsible for uncollected school taxes.
INTERFUND TRANSACTIONS
Interfund transactions have been eliminated from the government-wide financial statements. In
the funds statements interfund transactions include:
a) Interfund Revenues
Interfund revenues, which are quasi-external transactions, in the general fund represent
amounts charged for services or facilities provided by the general fund. The amounts paid by
the fund receiving the benefit of the service or facilities are reflected as an expenditure of that
fund.
b) Transfers
Transfers represent payments to the debt service, general fund and capital projects funds
from the other funds for their appropriate share of the debt service, general fund or capital
project costs.
COMPENSATED ABSENCES
The liability for vested or accumulated vacation or sick leave (compensated absences) is
recorded as current and noncurrent obligations in the government-wide statements. The current
portion of this debt is estimated based on historical trends. In the fund financial statements only
the compensated absence liability payable from expendable available financial resources is
incurred.
The amount that is expected to be liquidated with expendable available financial resources is
reported as expenditures and a liability in the funds statement in the respective fund that will pay it.
6. EQUITY CLASSIFICATIONS
In the Government-wide Statements, equity is classified as net assets and displayed in three
components:
a) Invested in capital assets, net of related debt--Consists of capital assets including
restricted capital assets, net of accumulated depreciation and reduced by the outstanding
balances of any bonds, notes, or other borrowings that are attributable to the acquisition,
construction, or improvement of those assets.
- 24 ~
TOWN OF $OUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
6. EQUITY CLASSIFICATIONS (continued)
b)
Restricted net assets--Consists of net assets with constraints placed on the use either by
(1) external groups such as creditors, grantors, contributors, or laws or regulations of other
governments; or (2) law through constitutional provisions or enabling legislation.
c) Unrestricted net assets--All other net assets that do not meet the definition of "restricted"
or "invested in capital assets, net of related debt."
In the Fund Statements, governmental fund equity is classified as fund balance. Fund balance is
further classified as reserved and unreserved, with unreserved further split between designated
and undesignated. Poriions of fund equity are segregated for future use and therefore not available
for future appropriation or expenditure. Amounts reserved for encumbrances, inventory, insurance
claims and debt service represent portions of fund equity, which are required to be segregated in
accordance with state law or GAAP. Designations of fund balances in governmental funds indicate
the utilization of these resources in the subsequent year's budget or tentative plans for future use.
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
1. BUDGETARY DATA
Budgets are adopted annually on a basis consistent with generally accepted accounting
principles. Appropriations authorized for the current year are increased by the amount of
encumbrances carried forward from the prior year.
Budgetary controls for special revenue funds are established in accordance with the applicable
grant agreement, which may cover a period other than the Town's fiscal year. Appropriate
budgetary adjustments have been made to reflect these grant agreements during the Town's
fiscal year.
The Town follows the procedures enumerated below in establishing the budgetary data reflected in
the financial statements:
a)
No later than October 1, the Supervisor submits a tentative budget to the Town Board for
the fiscal year commencing the following fiscal year. The tentative budget includes the
proposed means of financing for all funds.
b)
After public hearings are conducted to obtain taxpayer comments, no later than November
20, the Town Board adopts the budgeL
c)
The Town Board must approve all modifications of the budget. However, the Supervisor
is authorized to transfer certain budgeted amounts within departments.
In order to show the full legal level of budgetary compliance for the general and certain special
revenue funds, detailed individual statements of revenues, expenditures and changes in fund
balances - budget and actual, are presented in a separate budget repod.
- 25 -
Co
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (continued)
2. FUND BALANCES
DESIGNATION OF FUND BALANCE
Portions of the unreserved balances at December 31, 2007 were designated for the subsequent
year's operating budgets as follows:
Total for Subsequent Fund Balance
Fund Balance Year's Unreserved
Fund Unreserved Budget Undesignated
Major Governmental Funds
General Fund- Townwide
Highway Fund
Non-Major Funds:
Town Outside Village
East West Fire Protection District
Southold Wastewater District
Fishers Island Sewer District
Solid Waste Management District
$ 3,839,911 $ 1,816,000 $ 2,023,911
1,079,221 491,000 588,221
699,645 317,000 382,645
20,198 6,400 13,798
213,094 213,094
36,581 36,581
110,229 110,229
FUND DEFICITS
The capita~ projects fund had an undesignated deficit fund balance at December 31, 2007. The
capital projects fund deficit will be eliminated as short-term debt is redeemed or converted to
permanent financing.
DETAILED NOTES ON ALL FUNDS
1. CASH AND INVESTMENTS
Cash consists of funds deposited in demand accounts, time deposit accounts, and cer[ificates of
deposit with maturities of less than three months.
The Town's investments are governed by a formal investment policy. The Town's monies must
be deposited in FDiC-insured commercial banks or trust companies located within the state.
The Town is authorized to use demand accounts and certificates of deposit. Permissible
investments include obligations of the U.S. Treasury, U.S. Agencies and investments made by
the Cooperative Liquid Asset Security System (CLASS).
CLASS is a cooperative investment plan consisting of U.S. Treasury Obligations and repurchase
agreements relating to treasury obligations. Investments are stated at cost, which approximates
market value. CLASS was established as a cooperative investment arrangement organized under
the CLASS Municipal Cooperation Agreement made pursuant to New York General Municipal Law,
Article 3A and 5-G.
Collateral is required for demand deposits and time deposits accounts at 105% of all deposits not
covered by federal deposit insurance. Obligations that may be pledged as collateral include
obligations of the United States and its agencies and obligations of the State and its municipalities
and school districts. The Town's collateral agreements are based on the Town's available balance.
Custodial Credit Risk - Deposits/Investments - Custodial credit risk for deposits exists when, in
the event of the failure of a depository financial institution, a government may be unable to
recover deposits, or recover collateral securities that are in possession of an outside agency.
Custodial credit risk for investments exists when, in the event of the failure of the counterparty, a
government will not be able to recover the value of its investments or collateral securities that
are in possession of an outside party.
- 26 -
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
DETAILED NOTES ON ALL FUNDS (continued)
CASH AND INVESTMENTS (continued)
Governmental Accounting Standards Board Statement No. 40 directs that deposits be disclosed
as exposed to custodial credit risk if they are not covered by depository insurance, and the
deposits are either:
· Uncollateralized
· Collateratized with securities held by the pledging financial institution, or
· Collateralized with securities held by the pledging financial institution's trust department or
agent but not in the Town's name
At December 31, 2007 the Town's cash book balance was approximately $47,805,000. This
amount is inclusive of Fiduciary fund deposits of approximately $5,700,000 but exclusive of petty
cash of approximately $2,000. The available bank balance was approximately $46,200,000. Of the
bank balance, $1,100,000 was covered by Federal deposit insurance, and approximately
$86,800,000 was covered by collateral held by the Town's agent, a third-party financial institution, in
the Town's name.
2. INTERFUND RECEIVABLES AND PAYABLES
Interfund receivables and payables for the primary government at December 31, 2007 were as
follows:
Major Governmental Funds:
General Fund - Town wide
Highway Fund
Capital Projects Fund
Non-Major Governmental Funds:
General Fund - Part Town
East-West Fire District
Seuthold Wastewater District
Fishers Island Sewer District
Solid Waste Management District
Amount Amount
Receivable Payable
$ 74,500 $ 2,305,222
1,260,522 27,090
126,342
Total
267,093
157,192
1,051
470 2,000
477,127 29,985
$ 2.364.297 $ 2.364.297
Interfund receivable and payable balances for the pr[mary government at December 31, 2007
are expected to be paid currently.
Interfund transfer balances for the primary government at December 31, 2007 represent primarily
the payment of operating and capital expenditures and are stated as follows:
Major Governmental Funds:
General Fund - Town wide
Highway Fund
Capital Projects Fund
Non-Major Governmental Funds:
General Fund - Part Town
Solid Waste Management District
Total
Transfers Transfers
In Out
$ 2,738,349 $ 2,403,563
211 794,696
1,333,814
226,842
647,273
4.072.374
- 27 -
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
DETAILED NOTES ON ALL FUNDS (continued)
3. CAPITAL ASSETS
Primary qovemment
Capital assets not being depreciated
Land
Construction in progress
Total capital assets not being depreciated
Depreciable capital assets
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total depreciable capital assets
Less accumulated depreciation
Buildings
Improvements other than buildings
Machinery and equipment
Infras:ffucture
Balance Balance
1/1/07 Additions Deletions 12/31/07
$ 58,341,517 $ 10,587,685 $ 68,929,202
220,114 847,624 1,067,738
58,561,631 11,435,309 69,996,940
8,307,223 9,100 8,316,323
13,618,159 13,817 $ 7,326 13,624,650
9,916,143 968,653 687,003 10,197,793
70,694,655 766,713 71,461,368
102,536,180 1,758,283 694,329 103,600,134
2,206,266 129,946 7,326 2,328,886
3,932,088 410,123 4,342,211
6,597,870 722,594 670,310 6,650,154
47,804,275 2,743,127 50,547,402
$ 4,005,790 $ 677,636 63,868,653
39,731,481
Total accumulated depreciation $ 60,540,499
Total net depreciable capital assets
Total net capital assets
$109,728,421
Depreciation expense was charged to govemmental functions as follows:
General government support
Public safety
Transportation
Economic assistance and opportunity
Culture and recreation
Home and community services
$ 246,830
160,526
2,972,168
37,295
64,207
524,764
$ 4,005,790
28-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31,2007
DETAILED NOTES ON ALL FUNDS (continued)
3. CAPITAL ASSETS (continued)
Discretely presented component units
Capital assets not being depreciated
Land
Construction in progress
Total capital assets not being depreciated
Depreciable capital assets
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total depreciable capital assets
Less accumulated depreciation
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total accumulated depreciation $
Total net depreciable capital assets
Total net capital assets
Balance Balance
1/1/07 Additions Deletions 12131107
$ 2,213,759 $ 20,406 $ 2,193,353
12,947,081 $ 39,489 12,582,203 404,367
15,160,840 39,489 12,602,609 2,597,720
3,556,885 9,485 75,460 3,500,910
3,220,732 13,807,737 17,028,469
3,320,899 245,096 61,000 3,504,995
2,145,280 26,800 2,172,080
12,253,796 14,089,118 136,460 26,206,454
1,373,575 84,500 1,458,075
1,179,246 410,900 39,049 1,551,097
2,284,411 148,117 61,000 2,371,528
1,237,340 84,645 1,321,985
6,074,572 $ 728,162 $ 100,049 6,702,685
19,503,769
$ 22,101,489
INDEBTEDNESS
SHORT TERM DEBT
Bond Anticipation Notes (BANs) - Bond anticipation notes (BANs) are used as a temporary
means of financing capital expenditures in the capital projects fund. State law requires that BANs
issued for capital purposes be converted to long-term obligations within five years after the original
issue date. The notes or renewal thereof may not extend more than two years beyond the odginal
date of issue unless a portion is redeemed within two years and within each 12 month period
thereafter. Liabilities for BANs are geeerally accounted for in the capital projects fund. BANs are
expected to be paid from the proceeds of future bond issues after renewal of these notes. These
BANs bear interest at various rates from 3.35% to 3.95% and are due at various dates through
2008
When BANs are not redeemed with the proceeds of bond issues, but instead paid from budgetary
appropriations, the principal amount paid is recorded as an expenditure in the operating fund and a
financing source is recorded in the capital projects fund.
These notes are summarized as follows:
Interest
Description Amount Rate
Various Purposes ~ 3,560,000 3.95%
Various Purposes 699,000 3.75%
Fishers Island Sewer 125,000 3.35%
New London Wharf 1,500,000 3.70%
Fishers Island Garbage 360,000 3.76%
Total $ 6.244.000
- 29-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
DETAILED NOTES ON ALL FUNDS (continued)
4. INDEBTEDNESS (continued)
SHORT TERM DEBT (continued)
A summary of changes in BANS for the for the year ended December 31,2007 is as follows:
Balance Balance
1/1/07 Increases Reductions 12/31/07
Primary Government $ 7,729,000 $ 3,673,000 $ 7,018,000 $ 4,384,000
Component Units 2,185,000 -0- 325,000 1,860,000
$ 9.914.000 $ 3.673.000 $ 7.343.000 $ 6.244.000
LONG TERM DEBT
Summary of changes in long-term debt transactions for the year ended December 31, 2007 is as
follows:
Balance Balance liabilities due Non-current
1/1/07 Increases Reductions 12/31/07 within one year liabilities
General obligation bonds $ 8.494,098
Due to Employees Retirement
System 48,804
Net compensated absences 6,475,661
Estimated liability for landfill closure
and post-closure care costs 593,323
Component Units:
$14.650,050
495,736
$ 779,098 $ 22,365,000 $ 1,495,000 $ 201570,000
6,971,397 6,971,397
10,550 582,773 10,500 572,113
General obligation bonds 2,855,050 200,000 2,655T000 200,500 2,455,500
General Obligation Bonds - The Town borrows money in order to acquire land, equipment or
construct buildings and improvements. This enables the cost of these capital assets to be borne by
the present and future taxpayers receiving the benefit of the capital assets. These long-term
liabilities, which are backed by the fuel faith and credit of the Town, bear interest at various rates
from 3.14% to 6.375% and have maturity dates in 2008 through 2030.
Future principal and interest payments to maturity for both the pdmary government and the
component units are as follows:
Year Ending Principal Interest
2008 $ 1,695,000 $ 950,557
2009 1,750,000 888,643
2010 1,575,000 827,440
2011 1,600,000 768,387
2012 1,540,000 709,850
2013 1,425,000 654,789
2014 1,440,000 600,927
2015 1,435,000 545,816
2016-2020 6,085,000 1,948,783
2021-2025 3,725,000 973,281
2026-2030 2,750,000 292,188
Totals ~ $ 9.160.661
Other long-term liabilities for claims and judgments, compensated absences, retirement system
and the estimated liability for landfill closure and post closure costs are to be paid by the fund
that gave rise to the liability.
- 30 -
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
DETAILED NOTES ON ALL FUNDS (continued)
4. INDEBTEDNESS (continued)
PRIOR YEAR DEFEASANCE OF DEBT
In pdor years, the Town defeased certain bonds by piacing the proceeds of new bonds in an
irrevocable trust with an escrow agent to provide for all future debt service payments on the old
bonds. Accordingly, the trust account assets and liability for the defeased bonds are not included in
the Town's financial statements. At December 31, 2007, $1,700,000 of these bonds outstanding
are considered defeased.
5. RETIREMENT SYSTEM
Plan Description
The Town of Southold participates in the New York State and Local Employees' Retirement System
(ERS) and Local Police and Fire Retirement System (PFRS). This is a cost-sharing multiple-
employer retirement system. The System provides retirement benefits as well as death and
disability benefits.
Obligation of employers and employees to contribute and benefits to employees are governed by
the New York State Retirement and Social Security Law (NYSRSSL). As set forth in the
NYSRSSL, the Comptroller of the State of New York (Comptroller) serves as sole trustee and
administrative head of the System. The Comptroller shall adopt and may amend rules and
regulations for the administration and transaction of the business of the System and for the custody
and control of their funds.
A publicly available annual report containing financial statements and required supplemental
information for the Employees' Retirement System may be obtained by writing to the New York
State Retirement System, Governor Smith State Building, Albany, NY 12244.
Funding Policy
The System is noncontributory except for employees who joined the New York State and Local
Employees' Retirement System after July 27, 1976 and who have less than ten years of
membership and less than ten years of credited service with a retirement system under the
provisions of article fourteen or f'Aeen of the NYSRSSL, who centdbute 3% of their salary. Prior to
October 1, 2000, all employees who joined the System after July 27, 1976 were required to
contribute 3% of their salary. Under the authority of the NYSRSSL, the Comptroller shall ceYdfy
annually the rates expressed as proportions of payroll of members, which shall be used in
computing the contributions required to be made by employers to the pension accumulation fund.
The Town is required to contribute at an actuarially determined rate. The actual contributions were
equal to the actuarialty required amounts and also include additional contributions to fund vadous
eady retirement incentives made available to the Town employees. The credits and miscellaneous
adjustments represent modification made by the ERS for prior year's contributions.
The required contributions, for the Primary government, for the current year and two preceding
ERS PFRS
years were:
2007 $ 980,628 $ 967,286
2006 $ 1,096,547 $ 741,445
2005 $ 1,068,200 $ 1,016,937
The Town's contribution to the system was 100% of the contributions required each year.
-31 -
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
DETAILED NOTES ON ALL FUNDS (continued)
6. POST-EMPLOYMENT BENEFITS
In addition to providing pension benefits, the Town provides health insurance coverage and survivor
benefits for retired employees and their survivors. Substantially all of the Town's employees may
become eligible for these benefits if they reach normal retirement age while working for the Town.
Health care benefits in accordance with New York State Health insurance Rules and Regulations
(administered by the New York State Department of Civil Service), are provided through the New
York State Empire Plan (the "Empire Plan") whose premiums are based on the benefits paid
throughout the State during the year_
The Town recognizes the cost of providing benefits by recording its share of insurance premiums
as an expenditure in the year paid. The Town's union contracts and ordinances require that it
provide its eligible enrollees with Empire Plan benefit coverage, or if another provider is utilized, the
equivalent coverage. Under the provisions of the Empire Plan, premiums are adjusted on a
prospective basis for any losses experienced by the Empire Plan. The Town has the option to
terminate its participation in the Empire Plan at any time without liability for its respective share of
any previously incurred less. During the 2007 year, $3,471,322 was paid on behalf of 96 retirees
and 216 active employees and is recorded as an expenditure in the various funds of the primary
government.
7. COMPENSATED ABSENCES
Town employees are granted vacation and sick leave and earn compensatory absences in
varying amounts. In the event of termination or upon retirement, an employee is entitled to
payment for accumulated vacation and sick leave and unused compensatory absences at
various rates subject to certain maximum limitations.
Estimated vacation, sick leave and compensatory absences accumulated by governmental fund
type employees have been recorded in the statements of net assets. Payment of vacation time and
sick leave is dependent upon many ~:actors; therefore, timing of future payments is not readily
determinable. However, management believes that sufficient resources will be made available for
the payments of vacation, sick leave and compensatory absences when such payments become
due. As of December 31, 2007, the value of the accumulated vacation time and sick leave was
$6,971,397 for the primary government.
COMMITMENTS AND CONTINGENCIES
Risk Management
In common with other municipalities, the Town receives numerous notices of claims. The Town
established a self-insurance risk management program for general liability and health insurance
which are both accounted for in the Risk Retention Fund.
For general liability, the Town has a self-insured liability exposure of $50,000 per claim. Any
liability exposure above the $50,000 self-insured liability for General Liability, Automobile
Liability, and Police Liability is covered by primary insurance policies up to $1,000,000 per claim
and $3,000,000 in aggregate for the year. After primary policy limits are exhausted, the excess
exposure above the $1,000,000 is covered by an Umbrella Liability Policy of $10,000,000 per
claim and $10,000,000 in the aggregate. The Town has a Public Officials Liability policy with a
$25,000 deductible per claim, with the excess exposure above that $25,000 amount covered by
a Primary Liability rider of up to $1,000,000 per claim, with the excess exposure above that
$1,000,000 amount covered by the aforementioned Umbrella Liability Policy.
For insurance for health benefits that are self-insured, the Town has insurance policies which
provide coverage for specific medical cases in excess of $175,000 incurred and paid within the
calendar year, as well as coverage for all other claims in the aggregate. The exposure to the
Town under the aggregate policy is based on monthly enrollment. Considering the changes to
enrollment during 2007, the attachment point for the aggregate policy was $2,948,438.
- 32 -
Do
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
COMMITMENTS AND CONTINGENCIES (continued)
Risk Management (continued)
There have been no significant reductions in insurance coverage as compared to the prior year, and
there were no settlements in excess of insurance coverage over the last three years.
The Risk Retention Fund reserves for general liability claims are determined by a third party
administrator, and are reported when it is probable that a loss has occurred and the amount of that loss
can be reasonably estimated. Claims reserves for general liability claims are reevaluated periodically to
take into consideration recently setUed claims and any new developments and changes.
The Risk Retention Fund liabilities for medical claims outstanding at year end are reported by the third
party administrator and are recorded when the claim has been incurred and paid within 60 days of the
year end.
The Town's discretely presented component units are not included in the Town's self-insurance risk
management program for any claims.
Net assets in the Risk Retention Fund are reserved for future catastrophic losses and are not available
for other uses. Changes in the liability for claims and judgments for the year ended December 31,
2007 and 2006 are as follows:
General
Medical Liab~ity
2007 2006 2007 2006
Unpaid Claims as of December 31,
prior year
Incurred Claims:
Provision for insured events
of the current fiscal year
Increase (decrease) in net provision for
insured events of prior fiscal years
Total Incurred Claims and
Claim adjustments
Payments of:
Claims during the current year
$ 161,976 $ 200,131 $ 906 $ 1,811
2,524,953 2.171,127 6,857 3,600
48,556 2,011 309 (905)
2,5731509 2,173,138 7,166 _ 2,695
2,287,641 2,211,293 6.857 3,600
Unpaid Claims as of December 31,
current year ~ 447,844 ~ 161,976 $ 1,21_5 $ 906
During the year ended December 31, 2007 charges to the operating funds for the selfqnsurance programs
1,035,189
193,550
452,648
183,399
$ 1,864,786
were made as follows: Medical
General Fund Whole Town
General Fund Part Town
Highway Fund Part Town
Solid Waste District
General Liability
General Fund Whole Town
General Fund Part Town
Solid Waste District
Total Charges
356,316
16,421
16,421
389,158
$ 2 253.944
- 33-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
COMMITMENTS AND CONTINGENCIES (continued)
Landfill Closure and Post-Closure Care Costs
State and federal laws and regulations required the Town to place a final cover on its landfill sites and to
perform certain maintenance and monitoring functions at the sites for thirty years after closure. The Town
ceased accepting waste at its Cutchogue landfill as of October 8, 1993. The Town entered into a
stipulation of settlement with the New York State Department of Environmental Conservation in
October of 1994 in which all charges of operational violations at the Cutchogue landfill were dropped.
Under the stipulation, the Town agreed to close and place a final cover over the landfill and to pay a
civil penalty of $650,000 over seven years. Construction of the final cover commenced in the summer
of 2001 and was completed in the fall of 2003.
In addition to placement of the final cover on the landfill, state and federal regulations presently require
the Town to perform certain maintenance and monitoring functions at the site for up to thirty years.
Accordingly, as of December 31, 2007 the Town has recorded a liability of $582,773 which represents the
provision to be made in future budgets for post-closure landfill costs. Actual costs may vary due to
inflation or deflation, changes in technology, or changes in regulations or applicable taws.
Actual costs associated with the placement of the final cover totaled $7,681,719. Financing for closure
activities was provided through a $2,000,000 grant from the New York State Department of
Environmental Conservation with the balance provided with a state subsidized loan through the New
York State Environmental Facilities Corporation. Costs associated with post closure care will be
covered by charges to future landfill users and future tax revenue.
Lease Commitments and Leased Assets
The Town leases property and equipment under operating leases, Total rental expenditures on such
leases for the year ended December 31, 2007 were $209,842, Future obligations over the primary
terms of the Town's leases as of December 31,2007 are as follows:
2OO8 $ 189,393
2009 180,047
2010 105,458
2011 77,125
2012 and thereafter 486,777
Total $ 1,038.800
CONDENSED FINANCIAL STATEMENTS FOR THE DISCRETELY PRESENTED
COMPONENT UNITS
The following represents condensed financial statements for the discretely presented component units as
of and for the year ended December 31,2007:
Condensed Statement of Net Assets:
Fishers Island Fe~Ty District
Fishers Island Refuse and Garbage
Cutchogue-New Suffolk Park Distdct
Southold Park District
Orient-East Madon Park Distnct
Mattituck Park District
Odent Mosquito District
Due from Capital Assets Other
Current primary Net of Current Long*Term Net
Assets Government Depreciation Liabilities Liabilities Assets
$ 1,621,229 $ 205,649 $ 16,464,366 $ 3,285,079 $ 2,500,000 $ 12,506,165
1,064,451 163,675 3,137,414 547,319 3,818,221
128,029 42,095 122,182 42,095 250,211
86,189 91,450 668,835 91,450 755,024
3,536 10,095 432,985 21,510 425,106
262,824 139,704 1,253,381 199,270 55,000 1,401,639
9,003 25,230 22,326 25,230 31,329
$ 3,175,261 $ 677,898 $ 22,101,489 $ 4,211,953 $ 2,555,000 $ 19,187,695
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
E. CONDENSED FINANCIAL STATEMENTS FOR THE DISCRETELY PRESENTED
COMPONENT UNITS (continued)
Condensed Statement of Activities:
Program General Revenue Net Assets
Fishers Island Fer~y District
Fishers Island Refuse
and Garbage
Cutchogue-New Suffolk Park
Distnct I32,084
Southold Park District 339,999
Odent-East Madon Park Distnct 32,993
Mattituck Park Distdct 392,498
Odent Mosquito Distdct 86,911
132,084 145,000 5,446 (18,362) 231,849 250,211
339,999 315,000 41,854 (16,855) 739,169 755,024
32,993 30,695 50 2,248 427,354 425,106
392,468 467,527 47,243 (122,302) 1,279,337 1,401,639
86,911 82,235 2,219 2,457 33,796 31,329
$ 4,825,592 $ 2,598,387 $ 2,227,205 $ 2,14Z757 $ 2,091,838 $ (2,007,390) $ 17,180,305 $ 19,187,695
F. 2%TRANSFER TAX
In November 1998, the voters of the Town approved a referendum for a 2% Transfer Tax, which became
effective on April 1, 1999. The transfer tax receipts are recorded in the capital projects fund-community
preservation, and are used for the purchase and/or preservation of agricultural land, open space, parks, or
historic preservation sites. The tax applies to sales of vacant land worth $100,000 or more o~ sa~es or
improved land worth $250,000 er more. Conveyance of real property for open space, parks or historic
preservation purposes are exempt from this tax.
At December 31, 2007, and for the four previous years, the Town has the following 2% transfer tax revenue
and parks or historic preservation to any not-for-profit, or tax exempt organization, operating for conservation,
environmental or historic preservation purposes are expense of:
Revenues Expenditures
Yearend December31,2007 $ 6,071,436 $ 2,423,659
2006 5,823,714 10,969,280
2005 7,200,274 10,132,009
2004 6,045,685 6,408,951
2003 4,603,354 2,439,367
G. SUBSEQUENT EVENTS
The Town issued Public Improvement Serial Bonds in the amount of $8,850,000 which were dated May
15, 2008. This issue included $7.5M for Open Space purchases and $1.35M for the Acquisition and
Improvements of the Peconic Lane School. Interest rates vary from 4% to 4¼%, and the final payment is
due 5/15/30.
- 35 -
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
H. NEW PRONOUNCEMENTS
The Governmental Accounting Standards Board (GASB) approved new accounting standards applicable
to "other post-employment benefits" (OPEB's) and "termination benefits", which are non-pension benefits
provided after a person leaves employment, including retiree health care. Until now, these benefits have
generally been administered by municipalities on a pay-as-you-go basis and have not been reported as a
liability on financial statements.
GASB 45 and 47 requires municipalities which adhere to GAAP (Generally Accepted Accounting
Principles) to account for OPEB and termination liabilities on an accrual basis much like they already
account for pension liabilities, generally adopting the actuarial methodologies used for pensions, with
adjustments for the different characteristics of OPEB and termination benefits and the fact that most
municipalities have not set aside any funds against this liability.
Under GASB 45 and 47, based on actuarial valuation, an annual required contribution ("ARC") will be
determined for each municipality and then be periodically updated depending on the number of members
within the plan.
The Town is required to implement GASB 45 and 47 for the year ended December 31, 2008. The Town
will implement the new pronouncement when effective. Based on an actuarial valuation prepared as of
December 31, 2007, the Town will have an accrued liability of approximately $42 million related to this
pronouncement.
Governmental Accounting Standards Board (GASB) issued Statement No. 49 (GASB 49) which is a new
accounting standard applicable to pollution remediation obligations. The statement provides guidance on
how to calculate and report the costs and obligations associated with pollution cleanup efforts. Until now,
these costs generally have been on a pay-as-you-go basis and have not been reported as a liability on
the financial statements. The Town is required to implement GASB 49 for the year ended December 31,
2008.
- 36 -
REQUIRED SUPPLEMENTARY
INFORMATION OTHER THAN
MANAGEMENT DISCUSSION AND
ANALYSIS
TOWN OF SOUTHOLD
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
Year ended December 31, 2007
REVENUES
Real Property Taxes
Other Real Property Tax Items
Non-Property Tax Items
Departmental income
intergovernmental Charges
Use of Money and Property
Licenses and Permits
Fines and Forfeitures
Sale of Property and Compensation for Loss
Miscellaneous Local Sources
State Aid
Federal Aid
Total Revenues
EXPENDITURES
General Government Support
Public Safety
Public Health
Transportation
Economic Assistance and Opportunity
Culture and Recreation
Home and Community Services
Employee Benefits
Debt Service - Principal and Interest
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Variance with
Original Final Final Budget
Budget Budget Actual Encumbrances Positivel(Negative)
$16,205,911 $16,205,911 $16,205,911
80,000 80,000 92,606 12,606
616,000 616,000 683,873 67,873
473,600 591,100 411,790 (179,310)
421,244 347,219 329,202 (18,017)
555,000 564,000 764,912 200,912
234,900 234,900 253,494 18,594
127,000 127,000 155,477 28,477
7,550 58,208 148,283 90,075
92,554 104,819 185,945 81,126
2,332,897 2,422,952 2,412,869 (10,083)
181,025 145,568 (35,457)
21,146,656 21,533,134 21,789,930 256,796
6,480,095 6,490,347 5,234,683 $ 109,889 1,145,775
7,704,283 7,913,905 7,816,643 83,152 14,110
33,300 35,250 35,238 12
526,4t0 581,526 550,906 30,620
1,091,260 1,090,225 1,064,905 25,320
373,870 373,870 345,540 28,330
406,556 481,326 417,654 63,672
6,190,823 6,329,564 6,172,279 157,285
1,430,540 1,193,543 787,775 405,768
24,237,137 24,489,556 22,425,623 193,041 1,870,892
(3,090,481) (2,956,422) (635,693) (193,041) 2,127,688
Other Financing Sources (Uses)
Transfers In 3,296,446 3,336,895 2,738,349
Transfers Out (2,390,965) (2,596,808) (2,403,563)
Total Other Financing Sources (Uses) 905,481 740,087 334,786
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
(598,546)
193,245
(405,301)
$(2,185,000) $(2,216,335) (300,907) $ (193,041) $ 1,722,387
5,384,699
$ 5,083,792
See notes to the financial statements.
-37~
TOWN OF SOUTHOLD
HIGHWAY FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
Year ended December 31, 2007
Variance with
Original Final Final Budget
REVENUES Budget Budget Actual Positive/(Negative)
Real Property Taxes $ 4,045,195 $ 4,045,195 $ 4,027,695
Other Real Property Tax Items 11,100 11,100 12,722
Use of Money and Property 125,000 125,000 142,501
Licenses and Permits 7,000 7,000 10,362
Sale of Property and Compensation
for Loss
State Aid
Total Revenues
(17,500)
1,622
17,501
3,362
29,213 29,213
263,535 296,263 296,263
4,451,830 4,484,558 4,518,756 34,198
EXPENDITURES
Transportation 3,551,380 3,697,181 3,437,186
Employee Benefits 548,150 545,450 510,185
Debt Service - Principal and Interest 247,600 250,300 17,001
Total Expenditures
Excess of Revenues
Over Expenditures
259,995
35,265
233,299
4,347,130 4,492,931 3,964,372 526,559
104,700 (8,373) 554,384 562,757
Other Financing Sources (Uses)
Operating Transfers In 211 211
Transfers Out (591,200) (595,952} (794,696) (198,744)
Total Other Financing Sources (Uses) (591,200) (595,9527 (794,485) (198,533)
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
$ (486,500) $ (604,325} (240,101) $ 364,224
1,319,322
$ 1,079,221
See notes to the financial statements.
-38-
OTHER SUPPLEMENTARY
INFORMATION
TOWN OF BOUTHOLD
COMBINING BALANCE SHEET
NON MAJOR GOVERNMENTAL FUNDS
December 31. 2007
East-West Fire Southeld Fishers Solid Waste
General Fund Special Protection Wastewater Island Sewer Management
Part Town Grant Distdcl Distdct District District Totals
ASSETS
Cash and investmenls $ 621.398 $ 32,854 $ 238,754 $ 39.849 $ 134,006 $1.066.661
Accounts receivable 61.587 1.144 90.458 153,169
Due from other funds 267.093 157.192 1,051 470 477.127 902,933
Due from other governments $ 42,236 42,236
Prepaids 23.315 25,231 48,546
Total Assels
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable
Due to other funds
Del:erred revenue
To/al LiabiliJies
FUND BALANCE
Fund balance - reserved:
Encumbrances
Prepaids
Fund balance - unreserved:
Designaled - Ensuing Year's Budget
Undesignaled
Total Fund Balance
Total Liabililies and Fund Balance
$ §73,373 $ 42,236 $ 190,046 $ 239,805 $ 41,463 $ 725,822 $2,213,745
$ 15,272 $ 42,236 $ 12,650 $ 2,882 $ 149,126 $ 222,172
2,000 29,985 31,985
235,141 157,192 $ 941 437,482 830,756
250,413 42,236 169,848 941 4,882 616,593 1,084,913
25,770 25,770
23,315 23,315
317,000 6.400 323,400
382,645 13,798 213,094 30,581 110,229 756,347
722,960 20,198 238,864 36,581 110,229 1,128,832
$ 973,373 $ 42,236 $ 190,046 $ 239,805 $ 41,463 $ 726,822 $ 2,213,745
-39-
TOWN OF SOUTHOLD
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS
For Ihe year ended December 31. 2007
REVENUES
Real Property Taxes
Other Real Properly Tax Items
Non-Properly Tax Items
Deparlmental Income
Intergovernmental Charges
Use of Money and Properly
Licenses and Permits
Sale of Properly and Compensation for Less
Miscellaneous Local Sources
State Aid
Federal Aid
EXPENDITURES
General Government Suppod
Public Safety
Public Health
Home and Community Services
Employee Benefits
Debt service:
Principal
interest
Total Revenues
East-West Fire Southold Fishers Solid Waste
General Fund Special Protection Wastewater Island Sewer Management
Par{ Town Grant Distdct Distdct District District
$ 407,539 $ 499,000 $ 18,296
1,282 679 25
234,091
669,746 20,997
44,654 6,055 11,721
2,164
93,135
$ 210.175
1,457.761 210.175 505,734 51,039
87.970
443.127 505,184
7.370
656,988
220,697
$ 2
9,929
1,908
33,639
1,950
355
Tolals
$ 1,907,062 $ 2,831,897
2,593 4,581
234,091
1,446,830 2,147,502
905 905
30,023 94,361
164,185 169,338
214,273 216,437
13,283 13,283
93,135
210,175
11,839 3,779,157 0,015,705
16,206
Total Expendilures 1,416,152 215,175 505,184 35,954 16,206
Excess (Deficiency) of Reveoues Over Expenditures
Other Financing Uses: Transfers out
Total Other Financing Uses
41,609 (5,000) 550
(22~842)
(226,842)
(185.233) (5,000) 550
908,193 5,000 19.648
$ 722,960 $ -0- $ 20,198
Net Change tn Fund Balance
Fund Balances at Beginning of Year
Fund Balances at End of Year
87,970
948,311
7,370
248,292 468,989
234,098 236,058
294,353 294,738
3,027,879 5,216,550.
15,085 (4,367)
15,055 (4,367)
223,779 __40,948
$ 238,864 $ 36,581
751,278 799,155
(647,273) (874,11~.
__~47,273) (874,115)
104,005 (74,960)
6,224 1,203,792
$ 110,229 $ 1,_ 128,832
TOWN OF SOUTHOLD
DISCRETELY PRESENTED COMPONENT UNITS
COMBINING STATEMENT OF NET ASSETS
December 31, 2007
To[a[ Net Assels
Fishers Island Cutchogue- Sou{hold Orient-East Mat0tuck Orient
Fishers Refuse and New Suffolk Park Marion Park Park Mosgu0o
Island Ferry Garbage Dislricl Park Dis[tic1 ~0s[dct Dis[rlcl DIslrlc{ Disgict
District (Unaudited) (Unaudited) . (Unaudited) (Unaudited) (Unaudited)~ (Unaudited)
$ 600,638 $ 432,382 $ 128,029 $ 86,189
84,422 14,104
205,649 163,675 42,095 91,450
933,870 588.774
22,299 29~191
$ 3,536 $ 262,729 $ 9,003
95
10,095 139,?04 25,230
1,82§~878 1~228,126 170,124 177~639 13,631 402,528 34,233
41,717 517,262 101,198 568,801 432,985 935,757
16,422,649 2~620~152 20,984 100,034 317~624 22.326
16,464~366 3,137,414 122,182 668,835 432~985 1,253,381 22~326
18~201~244 4~365~540 292,306 846,474 446,616 1~655,909 56,559
$ 1,522,506
78,621
677,898
1,522,644
51,490
3,853~159
2,597,720
19~503~769
22,101,489
25~954,648
63,837
1,500,000 360,000
171,282 167.167
150,000
50,000
42,095 91,450
11,415 8,742 1,390,469
824 64,461
1,860,000
10,095 139,704 25,230 647,023
50,000 200,000
50,000
3,285,079 547,319 42~095
2,400,000
100,000
91,450 21,510 199,270 25,230 4,211,953
55,000 2,455,000
100,000
5,785,079 547,319 42,095
12,414,366 2,831,893
2,756
89,043 986,328
91~459 __ 21~510 254,270 25,230 6,766,953~
738,169 1,148,381 17,132,809
2,756
16,855 425,106 253~258 31~329 2,052~130
TOWN OF BOUTHOLD
DISCRETELY PRESENTED COMPONENT UNITS
COMBINING STATEMENT OF ACTIVITIES
Year ended December 31, 2007
REVENUES
Program revenues
Real property taxes
Other real property tax i~ems
Non-property tax items
Interest earnings
State Aid
Federal Aid
OIher
Total ReventJes
EXPENSES
General government support
Public health
Transportalion
Cullure and recreation
Interest on debt
Fishers Island Cutchogue- Southold Orient East Mattituck Orient
Fishers Refuse and New Suffolk Park Madon Park Park Mosquito
Island Ferry Garbage Disldct Park District District District District District
District (Unaudited) (Unaudited) _ (Unaudited) (Unaudited) (Unaudited)_ (Unaudited)
Changes in Net Assets
Totals
$ 2,546,987 $ 51,400 $ 2,598,387
590.g00 512,300 $ 145,000 $ 315,000 $ 30,695 $ 467,527 $ 82,235 2,142,757
802 697 197 428 42 636 2,802
90,558 90,558
22,479 36,615 5,249 3,238 8 26,536 1,972 96,097
27,365 588,774 616,139
1,220,744 1,220,744
6,992 38,188 20,071 247 65,498
4,415,369 1,280,344 150,440 356,854 30,745 514,770 84,454 6,832,982
193,250 193,250
86,911 86,911
2,819,880 2,819,880
132,084 339,999 32,993 387,994 893,070
16,405 633,048 649,453
157,586 20,968 4,474 183,028
Total Expenses 3,187,121 654,016 132,084 339,999 32,993 392,468. 86,911 4,825,592
Net Assets at Beginning of Year
Net Assels al End of Year
1,228,248 626,328 18,362 16,855 (2,248) 122,302 (2,457) 2,007,390
11,277,917 3,191,893 231,849 738,169 427,354 1,279,337 33~786 17,180,305
.$12,506,165 $ 3,818,22~1 $~250,21~1 $ 755,O24 _$ 425,106 $ 1,401,63~9 $ 31,329 $19,187,695
-42-