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,i 1
Southold Town Clerk
CERTIFICATE OF DETERMINATION BY THE SUPERVISOR
RELATIVE TO THE TERMS, FORM AND DETAILS OF SALE
AND ISSUANCE OF $2,125,000 REFUNDING SERIAL
BONDS-2009 OF THE TOWN OF SOUTHOLD, NEW YORK
AND PROVIDING FOR THEIR PRIVATE SALE
I, SCOTT A. RUSSELL, Supervisor of the Town of Southold, in the County of
Suffolk, New York (the "Town"), HEREBY CERTIFY that pursuant to the powers and duties
delegated to me as the chief fiscal officer of the Town pursuant to the Refunding Bond
Resolution duly adopted and as set forth in Section 1 hereof and subject to the limitations
prescribed in said resolution, I have made the following determinations:
1. Authorization, Principal Amount, Maturity Schedule and Designation.
Refunding serial bonds in the principal amount of $2,125,000 and designated as '
"Refunding Serial Bonds~2009'' (referred to hereinafter as the "Refunding Bonds" or the
"Bonds") authorized pursuant to the Refunding Bond Resolution duty adopted by the Town
Board on February 24, 2009 (the "Refunding Bond Resolution"), entitled:
"Refunding Bond Resolution of the Town of Southold, New York,
adopted February 24, 2009, authorizing the refunding of certain
outstanding bonds of said Town, stating the plan of refunding,
appropriating an amount not to exceed $3,000,090 for such purpose,
authorizing the issuance of not to exceed $3,000,000 refunding bonds to
finance said appropriation, and making certain other determinations
relative thereto,"
shall be issued to refund the Town's:
(i) $2,000,000 Agricultural Land Preservation Serial Bonds-1998, maturing in
each of the years 2010 through 2018, inclusive, in the aggregate principal amount of $1,020,000
(the "1998 Refunded Bonds"), which bonds were originally issued pursuant to the bond
resolution adopted by the Town Board on September 3, 1996, authorizing the acquisition of
certain development rights in prime agricultural lands within said Town for the preservation of
560789.1 032681 CERT
open spaces and areas; and such 1998 Refunded Bonds mature on May 1 in each of the years and
in the principal amounts and bear interest payable semiannually on May 1 and November l in
each year to maturity, as follows:
Year of Principal Interest
Maturity Amount Rate
2010 $100,000 4.85%
2011 110,000 4.85
2012 110,000 4.85
2013 110,000 4.85
2014 110,000 4-7/8
2015 120,000 4-7/8
2016 120,000 4-7/8
2017 120,000 4-7/8
2018 120,000 4-7/8
The 1998 Refunded Bonds maturing on or after May 1, 2010 are subject to
redemption prior to maturity and shall be redeemed by the Town on June 3, 2009 at the
redemption price of par, plus a redemption premium equal to one per centum (1%) of the
principal amount of the 1998 Refunded Bonds to be redeemed, plus accrued interest to the date
of redemption. At the closing, the Town shall provide irrevocable instructions to The Bank of
New York Mellon, as Escrow Holder, to mail to the registered holders of the Refunded Bonds, as
the names and addresses of such holders shall appear on the books and records of the paying
agent for the Refunded Bonds, as required by Section 53.00 of the Local Finance Law, a notice
to be mailed not less than thirty (30) days prior to June 3, 2009, setting forth the date set for
redemption of the Refunded Bonds maturing on or after May 1, 2010.
(ii) $1,900,000 Open Space Preservation Serial Bonds-1999 maturing in the
years 2010 through 2019, inclusive, in the aggregate principal amount of $1,070,000 (the "1999
Refunded Bonds" and together with the 1998 Refunded Bonds, the "Refunded Bonds"), which
bonds were issued pursuant to the bond resolution adopted by the Town Board on September 2,
560789.1 032681 CER]'
1997, authorizing the acquisition of interests or rights in real property within said Town for the
preservation of open spaces and areas; and such 1999 Refunded Bonds mature on May 1 in each
of the years and in the principal amounts and bear interest payable semiannually on May 1 and
November 1 in each year to maturity, as follows:
Year of Principal Interest
Maturity Amount Rate
2010 $ 90,000 4.70%
2011 100,000 4.70
2012 100,000 4.70
2013 100,000 4.70
2014 110,000 4.70
2015 110,000 4.70
2016 110,000 4.70
2017 110,000 4.70
2018 120,000 4.70
2019 120,000 4.70
The 1999 Refunded Bonds maturing on
or after May 1, 2010 are subject to
redemption prior to maturity and shall be redeemed by the Town on June 3, 2009 at the
redemption price of par, plus a redemption premium equal to two per centum (2%) of the
principal amount of the 1999 Refunded Bonds to be redeemed, plus accrued interest to the date
of redemption. At the closing, the Town shall provide irrevocable instructions to The Bank of
New York Mellon, as Escrow Holder, to mail to the registered holders of the Refunded Bonds, as
the names and addresse~ of such holders shall appear on the books and records of the paying
agent for the Refunded Bonds, as required by Section 53.00 of the Local Finance Law, a notice
to be mailed not less than thirty (30) days prior to June 3, 2009, setting forth the date set ~br
redemption of the Refunded Bonds maturing on or after May 1,2010.
The Refunding Bonds shall mature on May 1 in the principal amounts and shall
bear interest on the principal amounts in each of the years at the annual interest rates as set forth
below:
560789.1 032681 CERT
Year of Principal Interest
Maturity Amount Rate
2010 $210,000 2.00%
2011 230,000 2.00
2012 220,000 2.00
2013 220,000 2.25
2014 225,000 2.50
2015 225,000 2.75
2016 225,000 3.00
2017 220,000 5.00
2018 235,000 5.00
2019 115,000 3.50
2. Present Value
Savings. The aggregate present value savings to be realized
through the refunding of the Refunded Bonds is set forth in the refunding financial plan attached
hereto as Appendix A.
3. Issue Date. The Bonds shall be dated May 4, 2009. The date of each
Bond shall appear on the face thereof following the caption "Date of Original Issue", and each
Bond shall bear interest from such date.
4. Dates and Medium of Payment. The Bonds shall bear interest from their
date at the rates per armum set forth in Section 1 hereof, payable November 1, 2009, and semi-
annually thereafter on May I and November 1 in each year until maturity, in any coin or
currency of the United States of America which at the time of payment is legal tender for the
payment of public and private debts. Interest shall be paid by wire transfer or in clearinghouse
funds on each interest payment date, payable to the person in whose name the bond is registered
at his address as shown upon the books of the Town kept for that purpose at the office of the
Town of the Town Clerk, Town Hall, 53095 Main Road, Southold, New York as fiscal agent (the
"Fiscal Agent"), as of the close of business on the fifteenth day of the month preceding each
interest payment date for the Bonds.
560789,1 032681 CERT
maturity.
5. Prior Redemption. The Bonds will not subject to redemption prior to
6. Bond Insurance. The Bonds will not be insured.
7. Denominations, Numbers and Letters. The bonds maturing in each year
shall be issued as fully registered bonds in denominations of $5,000 or any integral multiple
thereof. The bonds shall be lettered "R" and shall be numbered separately from one (1)
consecutively upward. All of the Bonds shall be transferable and exchangeable as provided
therein.
8. Book-Entry System. The Bonds when issued shall be (i) registered in the
name of Cede & Co., as nominee of The Depository Trust Company, New York, New York
("DTC"), and (ii) deposited with DTC to be held in trust until maturity. Only one Bond will be
initially issued for each maturity in the aggregate principal amount of such maturity. DTC is an
automated depository for securities and clearinghouse for securities transactions, and will be
responsible for establishing and maintaining a book-entry system for recording the ownership
interests of its participants, which include certain banks, trust companies and securities dealers,
and the transfers of the interests among its participants. The DTC participants will be
responsible for establishing and maintaining records with respect to the beneficial ownership
interests of individual purchasers in the Bonds. Individual purchases of beneficial ownership
interests in the Bonds may only be made through book entries (without certificates issued by the
Town) made on the books and records of DTC (or a successor depository) and its participants, in
denominations of $5,000 or integral multiples thereof. Beneficial owners of the Bonds will not
receive certificates representing their interests in the Bonds. Principal of and interest on the
Bonds will be payable by the Town or its agent by wire transfer or in clearinghouse funds to
560789.1 032681 CERT
DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest
payments to participants of DTC will be the responsibility of DTC; transfer of principal and
interest payments to beneficial owners by participants of DTC wilt be the responsibility of such
participants and other nominees of beneficial owners. The Town will not be responsible or liable
for payments by DTC to its participants or by DTC participants to beneficial owners or for
maintaining, supervising or reviewing the records maintained by DTC, its participants or persons
acting through such participants.
9. Discontinuance of Book-Entry System. In the event that (a) DTC
determines to discontinue providing its service with respect to the Bonds by giving notice to the
Town and discharging its responsibilities with respect thereto under applicable law, and the
Town fails to appoint a successor securities depository for the Bonds, or (b) the Town determines
to discontinue the system of book-entry transfers through DTC (or a successor securities
depository), then bond certificates shall be delivered to the beneficial owners upon registration of
the Bonds held in the beneficial owners' names. After such registration the beneficial owners
shall become the registered owners of the Bonds. In such event, the Supervisor of the Town
shall execute a Supplemental Certificate of Determination which will set forth the terms, form
and details of issuance of such bond certificates.
10. Fiscal Agent. The Town Clerk is hereby appointed as Fiscal Agent for the
Bonds pursuant to, and to act in accordance with, applicable provisions of the Local Finance
Law, constituting Chapter 33-a of the Consolidated Laws of the State of New York. In the event
that the book-entry system described in Section 8 above is discontinued, the Town may appoint a
bank or trust company located and authorized to do business in New York State to act as
successor Fiscal Agent in connection with the issuance of bond certificates.
560789.1032681CERT
11. Execution of Bonds. The Bonds shall be executed in the name of the
Toxvn by the manual signature of the Supervisor, and shall have the corporate seal of the Town,
or a facsimile thereof, affixed, imprinted, engraved or otherwise reproduced thereon, and the seal
attested by the Town Clerk.
12. Transfer of Bonds. Each Bond shall be transferable only upon the books
of the Town, which shall be kept for such purpose at the office of the Fiscal Agent, by the
registered owner thereof in person or by his attorney duly authorized in writing, upon surrender
thereof together with a written instrument of transfer or exchange satisfactory to the Fiscal Agent
duly executed by the registered owner or his duly authorized attorney. Upon transfer of any such
Bond, the Town shall issue in the name of the transferee or the registered owner a new Bond or
Bonds of the same aggregate principal amount and maturity as the surrendered Bond. The Fiscal
Agent may deem and treat the person in whose name any Bond shall be registered upon the
books of the Town as the absolute owner of such Bond, whether such Bond shall be overdue or
not, for the purpose of receiving payment of, or on account of, the principal of and interest on
such Bond and- for all other purposes, and all such payments so made to any such registered
owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon
such Bond to the extent of the stun or sums so paid, and neither the Town nor the Fiscal Agent
shall be affected by any notice to the contrary.
13. Regulations With Respect to Exchanges and Transfers. In all cases in
which the privilege of exchanging or transferring Bonds is exercised, the Town shall execute and
deliver Bonds in accordance with the provisions hereof. All Bonds surrendered in any such
exchanges or transfers shall forthwith be cancelled by the Fiscal Agent. For every such
exchange or transfer of bonds, the Fiscal Agent may make a charge sufficient to reimburse the
560789.1 032681 CERT
Town for any tax, fee or other governmental charge required to be paid with respect to such
exchange or transfer, and may charge a sum sufficient to pay the cost of preparing each new
bond issued upon such exchange or transfer, which sum or sums shall be paid by the person
requesting such exchange or transfer as a condition precedent to the exercise of the privilege of
making such exchange or transfer. The Town shall not be obliged to make any such exchange or
transfer of Bonds between the fifteenth day of the month preceding an interest payment date and
such interest payment date.
14. Sale of Bonds. The Bonds are hereby sold at private sale to Roosevelt &
Cross, Incorporated, New York, New York (the "Underwriter") pursuant to the Bond Purchase
Agreement dated April 7, 2009 between said Underwriter and the Town, for the purchase price
of $2,183,287.65, consisting of the par amount of the Bonds, plus a net original issue premium of
$74,287.65, less the Underwriter's discount of $16,000.00, plus accrued interest, if any, from the
date of the Bonds to the date of delivery of and payment for the Bonds. Pursuant to Section
90.10 of the Local Finance Law, constituting Chapter 33-a of the Consolidated Laws for the
State of New York, the terms and conditions of such sale are subject to the approval of the State
Comptroller. Delivery of the Bonds to the purchasers thereof shall be effected on or about May
4, 2009, upon (i) receipt by the Town of the purchase price of the Bonds, and (ii) deposit of the
Bonds with DTC to be held in trust until maturity.
15. Form of Bonds. Said Bonds shall be in substantially the form set forth in
Appendix B hereto.
16. SEC Rule 15c2-12. In order to assist bidders in complying with Rule
15c2-12 promulgated by the Securities and Exchange Commission and as part of the Town's
contractual obligation arising from its acceptance of the Underwriter's proposal, at the time of
560789.1 032681 CERT
the delivery of the Bonds the Town will provide an executed copy of its "Agreement to Provide
Continuing Disclosure" in substantially the form set forth in Appendix C hereto. Said
Agreement will constitute a written agreement or contract of the Town for the benefit of holders
of and owners of beneficial interests in the Bonds, to provide to (i) each nationally recognized
municipal securities information repository, or to the Municipal Securities Rulemaking Board,
and (ii) to the New York State Information Depository, if created, the annual financial
information and notice of the occurrence of certain material events, as enumerated in said Rule
15c2q12.
I HEREBY FURTHER CERTIFY that the powers and duties delegated to me to
issue and sell the Bonds hereinabove described and referred to are in full force and effect and
have not been modified, amended or revoked.
[signature page follows]
560789.1 032681 CERT
1N WITNESS WHEREOF,
I have hereunto set my hand to this Certificate of
Determination as of the 7th day of April, 2009.
560789.1 032681 CERT
CLERK'S CERTIFICATE
I, ELIZABETH A. NEVILLE, Town Clerk of the Town of Southold, in the
County of Suffolk, New York, DO HEREBY CERTIFY that I have compared the foregoing
copy of the Certificate of Determination executed by the Supervisor and the same is a true and
complete copy of the Certificate filed with said Town in my office as Town Clerk on or before
May 4, 2009; and
I FURTHER CERTIFY that no resolution electing to reassume any of the powers
or duties mentioned in said Certificate and delegated to the Supervisor by the resolution cited in
said Certificate has been adopted by the Town Board.
1N WITNESS WHEREOF, I have hereunto set my hand and affixed the
corporate seal of said Town this ?o/a~'day of April,
2009.
(SEAL)
Towh Clerk
560789.1032681CERT
APPENDIX A
Refunding Financial Plan
as prepared by
Roosevelt & Cross, Incorporated
560789.1 032681 CERT
Dated Date
5/4/2009
Refunding Par Amount
Bond Arbitrage Yield
Escrow Yield
Refunded Bonds Par Amount
Average Coupon of Refunded Bonds
2,125,000
2.727616%
0.153096%
2,090,000
4.778251%
Net PV Savings 104,906.52
Percentage of PV Savings 5.019451%
Aggregate Budgetary Savings 115,916.57
Annual Budgetary Savings (Dec 31)
Fiscal Year 2009
Fiscal Year 2010
Fiscal Year 2011
Fiscal Year 2012
Fiscal Year 2013
Fiscal Year 2014
Fiscal Year 2015
Fiscal Year 2016
Fiscal Year 2017
Fiscal Year 2018
Fiscal Year 2019
18,739.07
13,980.00
8,822.50
13,287.50
7,927.50
7,93t .25
13,061.25
8,510.00
11,365.00
6,485.00
5,807.50
ROOSEVELT & CROSS
41712009
~ t I.4
SOURCES AND USES OF FUNDS
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (05/01/2010 - 2016)
REFUNDING OF 05/01/1999 BONDS (0510112010 - 2019)
(BANK QUALIFIED); (NON-CALLABLE)
UNENHANCED - Aa3 UNDERLYING
Dated Date 05~04~2009
Delivery Date 05~04~2009
Bond Proceeds:
Par Amount 2,125,000.00
Net Premium 74,287.65
2,199,287.65
Refunding Escrow Deposits:
Cash Deposit
SLGS Purchases
Delivery Date Expenses:
Cost of Issuance
Underwriter's Discount
Other Uses of Funds:
Additional Proceeds
21.03
2,130,217.00
2,130,238.03
51,000.00
16,000.00
67,000.00
2,049.62
2,199,287.65
Apr7,2009 12:44pm Prepared by Roosevelt & Cross, lncorporated(s) (Finance6.011 nys:R29899) Page1
SOURCES AND USES OF FUNDS
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (05/01/2010 - 2018)
REFUNDING OF 05/01/1999 BONDS (05/01/2010 - 2019)
(BANK QUALIFIED); (NON-CALLABLE)
UNENHANCED - Aa3 UNDERLYING
Dated Date 05/04/2009
Delivery Data 05~04~2009
REFUNDING REFUNDING
Sources: BONDS BONDS Total
Bond Proceeds:
Par Amount 1,030,000.00 1,095,000.00 2,125,000.00
Net Premium/OlD 37,97430 36,313.35 74,287.65
1,067,974.30 1,131,313.35 2,199,287.65
REFUNDING REFUNDING
Uses; BONDS BONDS Total
Refunding Escrow Deposits:
Cash Deposit
SLGS Purchases
10.90 10.13 21.03
1,034,482.00 1,095,735.00 2,130,217.00
1,034,492.90 1,095,745.13 2,130,238.03
24,720.00 26,280.00 51,000.00
7,755.29 8,244.71 16,000.00
32,475.29 34,524.71 67,000.00
Delivery Date Expenses:
Cost of Issuance
Underwdtar's Discount
O~her Uses of Funds:
Additional Proceeds
1,006.11 1,04351 2,049.62
1,067,974.30 1,131,313.35 2,199,287.65
Apr7,2009 12:44pm Prepared by Roosevelt & Cross, lncorporated(s) (Finance6,011 nys:R29899) Page2
SUMMARY OF REFUNDING RESULTS
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (05/01/2010 - 2018)
REFUNDING OF 05/01/1999 BQNDS (05/01/2010 - 2019)
(BANK QUALIFIED); (NON-CALLABLE)
UNENHANCED - As3 UNDERLYING
Dated Date
Delivery Date
Arbi~-age yield
Escrow yield
Bond Par Amount
True Interest Cost
Net Interest Cost
Ail-In TIC
Average Coupon
Average Life
Par amount of refunded bonds
Average coupon of refunded bonds
Average life of refunded bonds
PV of prior debt to 05/04/2009 @ 2.727616%
Net PV Savings
Percentage savings of refunded bonds
Percentage savings of refunding bonds
05/04/2009
05/04/2009
2.727616%
0.153096%
2,125,000.00
2.879379%
2.965072%
3.373851%
3.482389%
5.302
2,090,000.00
4.778251%
5.432
2,302,144.55
104,906.52
5.019451%
4.936777%
Apr7,2009 12:44pm Prepared by Roosevelt & Cross, lncorporated(s) (Finance6.011 nys:R29899) Page3
SAVINGS
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (05/01/2010 - 2018)
REFUNDING OF 05/01/1999 BONDS (05/01/2010 - 2019)
(BANK QUALIFIED); (NON-CALLABLE)
UNENHANCED - Aa3 UNDERLYING
Present Value
Prior Refunding Annual to 05/04/2009
Date Debt Service Debt Service Savings Savings @ 2.7276158%
11/01/2009 49,953.75 31,214.68 18,739.07 18,491.12
12/31 ~2009 18,739.07
05/01/2010 239,953.75 241,743.75 -1,790.00 ~1,742.55
11/01/2010 45,413.75 29,643.75 15,770.00 15,145,41
12/31/2010 13,980.00
05/01/2011 255,413.75 259,643.75 -4,230.00 -4,007.81
1110112011 40,396.25 27,343.75 13,052.50 12,200.49
1 2/31/2011 8,822.50
05/01/2012 250,396.25 247,343.75 3,052.50 2,81486
11/01/2012 35,378.75 25,143.75 10,235.00 9,311,20
12/31/2012 13,287 50
05/01/2013 245,378.75 245,143.75 235.00 210.91
11/01/2013 30,361 25 22,668.75 7,69250 6,811.13
1 2/31/2013 7,927.50
05/01/2014 250,361.25 247,668.75 2,692.50 2,351.93
11/01/2014 25,095.00 19,856.25 5,238.75 4,514.54
12/31/2014 7,931.25
05/01/2015 255,095.00 244,856,25 10,238,75 8,704.62
11/01/2015 19,585.00 16,762.50 2,822.50 2,367.30
1 2/31/2015 13,061.25
05/01/2016 249,585.00 241,762.50 7,822.50 6,472.66
11/01/2016 14,075.00 13,387~50 687.50 561,21
1 2/31/2016 8,510.00
05/01/2017 244,075.00 233,387.50 10,687.50 8,606.91
11/01/2017 8,565.00 7,88750 67750 53827
12/31/2017 11,365.00
05/0112018 248,565.00 242,887.50 5,677.50 4,450.03
11/01/2018 2,820.00 2, 012.50 80750 624.40
1 2/31/2018 6,485,00
05/01/2019 122,820.00 117,012,50 5,80750 4,430.26
1 2/31/2019 5,807.50
2,633,287.50 2,517,370.93 115,916.57 115,916.57 102,856.89
Savinqs Summary
PV of savings from cash flow
Plus: Refunding funds on hand
102,856.89
2,049.62
Net PV Savings 104,906.51
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6.011 nys:R29899) Page 4
Bond Component
Serial Bonds:
BOND PRICING
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (05/01/2010 - 2018)
REFUNDING OF 05/01/1999 BONDS (05/01/2010 -2019)
(BANK QUALIFIED); (NON-CALLABLE)
UNENHANCED - Aa3 UNDERLYING
Maturity
Date Amount Rate Yield
Pdce
05/01/2010 210,000 2.000% 1.050% 100.934
05/01/2011 230,000 2.000% 1.330% 101.312
05/01/2012 220,000 2.000% 1.580% 101,222
05/0112013 220,000 2.250% 2,000% 100.954
05/01/2014 225,000 2.500% 2.400% 100.467
05/01/2015 225,000 2.750% 2.600% 100827
05/01/2016 225,000 3.000% 2.870% 100,818
05/01/2017 220,000 5,000% 3.100% 113.358
05/01/2018 235,000 5.000% 3.300% 113.133
05/01/2019 115,000 3.500% 3.550% 99.582
2,125,000
Dated Date
Delivery Date
First Coupon
Par Amount
Premium
Production
Underwdter's Discount
Purchase Price
Accrued Interest
Net Proceeds
05/04/2009
05~04~2009
11/01/2009
2,125,000.00
74,287.65
2,199,28765
-16,000,00
2,183,287.65
2,183,287~5
103.495889%
-0.752941%
102.742948%
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (e) (Finance 6.011 nys:R29899) Page 5
BOND DEBT SERVICE
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (05/01/2010 - 2018)
REFUNDING OF 05/01/1999 BONDS (05/01/2010 - 2019)
(BANK QUALIFIED); (NON-CALLABLE)
UNENHANCED - Aa3 UNDERLYING
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
11/01/2009 31,214,68 31,214.68
12/31 ~2009 31,214.68
05/01/2010 210,000 2.000% 31,743.75 241,743.75
11/01/2010 29,643,75 29,643,75
12/31/2010 271,387.50
05/01/2011 230,000 2.000% 29,643.75 259,643.75
11/01/2011 27,343.75 27,343.75
1 2/31/2011 286,987.50
05/01/2012 220,000 2.000% 27,343.75 247,343.75
11/01/2012 25,143,75 25,143.75
1 2/31/2012 272,487.50
05/01/2013 220,000 2250% 25,14375 245,14375
11/01/2013 22,66875 22,668,75
12/31/2013 267,812.50
05/01/2014 225,000 2.500% 22,668.75 247,668.75
11/01/2014 19,856.25 19,856.25
12/31/2014 267,52500
05/0112015 225,000 2.750% 19,85625 244,856,25
11/01/2015 16,762.50 16,762.50
12/31/2015 261,618.75
05/01/2016 225,000 3.000% 16,762.50 241,762.50
11/01/2016 13,38750 13,387.50
12/31/2016 255,150.00
05/01/2017 220,000 5.000% 13,38750 233,387.50
11/01/2017 7,887.50 7,887,50
12/31/2017 241,275.00
05/01/2018 235,000 5.000% 7,887.50 242,887,50
11/01/2018 .2,012.50 2,012.50
12/31/2018 244,900.00
05/01/2019 115,000 3.500% 2,012.50 117,012,50
12/31/2019 117,012.50
2,125,000 392,37093 2,517,370.93 2,517,370.93
AprT, 2009 12:44pm Prepared by Roosevelt & Cross, lncorporated(s) (Finance6.011 nys:R29899) Page6
SUMMARY OF BONDS REFUNDED
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (0510112010 -2018)
REFUNDING OF 05/01/1999 BONDS (05/01/2010 - 2019)
(BANK QUALIFIED); (NON-CALLABLE)
UNFNHANCED - Aa3 UNDERLYING
Bond
Maturity Interest Par Call
Date Rate Amount Date
Agricultural Land Preservation Serial Bonds,
SERIALS 05/01/2010
05/01/2011
05/01/2012
05/01/2013
05/01/2014
05/01/2015
05/01/2016
05/01/2017
05/01/2018
Call
Pdce
1998, 1998:
4.850% 100,000.00 06/03/2009 101.000
4.850% 110,000.00 06/03/2009 101.000
4.850% 110,000.00 0653/2009 101.000
4.850% 110,000.00 06~3/2009 101.000
4.875% 110,000.00 06/03/2009 101~000
4.875% 120,000.00 06/03/2009 101.000
4.875% 120,000.00 06/03/2009 101.000
4.875% 120,000.00 06/03/2009 101.000
4.875% 120,000.00 06/03/2009 101 ~000
1,020,000.00
Open Space Preservation Serial Bonds, 1999, 1999:
SE RIALS 05/01/2010 4.700% 90,000.00
05/01/2011 4.700% 100,000.00
05/01/2012 4.700% 100,000.00
05/01/2013 4.700% 100,000.00
05/01/2014 4,700% 110,000.00
05/01/2015 4.700% 110,000.00
05/01/2016 4.700% 110,000.00
05/01/2017 4.700% 110,000.00
05/01/2018 4.700% 120,000.00
05/01/2019 4.700% 120,000.00
06/03/2009
06/03/2009
06~03~2009
06~03~2009
06/03/2009
06~03~2009
06/03/2009
06~03~2009
06/03/2009
06~03~2009
1,070,000.00
2,090,000.00
102.000
102.000
102000
102.000
102.000
102.000
102.000
102.000
102.000
102.000
AprT, 2009 12:44pm PreparedbyRoosevelt&Crose, lncorporated(s) (Finance6.011 nys:R29899) Page7
PRIOR BOND DEBT SERVICE
Town of Southold, New York
REFUNDING BONDS
REFUNDING Of 05/01/1998 BONDS (05/01/2010 -2018)
REFUNDING OF 05/01/1999 BONDS (05/01/2010 - 2019)
(BANK QUALIFIED); (NON-CALLABLE)
UNENHANCED - Aa3 UNDERLYING
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
11101/2009 49,953.75 49,953.75
12/31/2009 49,953.75
05/01/2010 190,000 ** 49,953.75 239,953.75
11/01/2010 45,413.75 45,413.75
12/31/2010 285,36750
05/01/2011 210,000 ** 45,413.75 255,413.75
11/01/2011 40,396.25 40,396.25
1 2/31/2011 295,810.00
05/01/2012 210,000 ** 40,396.25 250,396.25
11/01/2012 35,378.75 35,378.75
12/31/2012 285,775.00
05/01/2013 210,000 ** 35,378 75 245,37875
11/01/2013 30,36125 30,361.25
12/31/2013 275,740.00
05/01/2014 220,000 ** 30,361.25 250,361.25
11/01/2014 25,095.00 25,095.00
12/31/2014 275,456.25
05/01/2015 230,000 ** 25,095.00 255,095.00
11/01/2015 19,585.00 19,585.00
1 2/31/2015 274,680.00
05/01/2016 230,000 ** 19,585.00 249,585.00
11/01/2016 14,075.00 14,075.00
1 2/31/2016 263,660.00
05/01/2017 230,000 ** 14,075.00 244,075.00
11/01/2017 8,56500 8,565.00
1 2/31/2017 252,640 00
05/01/2018 240,000 ** 8,565.00 248,565.00
11/01/2018 2,820.00 2,820.00
1 2/31/2018 251,385,00
05/01/2019 120,000 4 700% 2,820 00 122,820.00
1 2/31/2019 122,820 00
2,090,000 543,28750 2,633,287.50 2,633,287.50
Apr7,2009 12:44pm Prepared by Roosevelt & Cross, Incorporated(s) (Finance6.011 nys:R29899) Page8
ESCROW REQUIREMENTS
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (05/01/2010 -2018)
REFUNDING OF 05/01/1999 BONDS (05/01/2010 - 2019)
(BANK QUALIFIED); (NON-CALLABLE)
UNENHANCED - Aa3 UNDERLYING
Period Principal Redemption
Ending Interest Redeemed Premium Total
06/03/2009 8,880.66 21090,000.00 31,600.00 2,130,480.66
8,880.66 2,090,000.00 31,600.00 2,130,480.66
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6011 nys:R29899) Page 9
ESCROW DESCRIPTIONS
Town of Southold, NewYork
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (05/01/2010 - 2018)
REFUNDING OF 05/01/1999 BONDS (0510112010 - 2019)
(BANK QUALIFIED); (NON-CALLABLE)
UNENHANCED - Aa3 UNDERLYING
Type of Type of Maturity First Int Par Max
Security SLGS Date Pmt Date Amount Rate Rate
May 4, 2009:
SLGS Certificate 06~03~2009 06~03~2009 2,130,217 0.150% 0.150%
2,130,217
SLGS Summary
SLGS Rates File
Total Certificates of Indebtedness
07APR09
2,130,217.00
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6,011 nys:R29899) Page 10
ESCROW COST
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (05/01/2010 - 2018)
REFUNDING OF 05/01/1999 BONDS (05/01/2010 - 2019)
(BANK QUALIFIED); (NON-CALLABLE)
UNENHANCED - Aa3 UNDERLYING
Type of Maturity Par Total
Security Date Amount Rate Cost
SLGS 06/03/2009 2,130,217 0.150% 2,130,217.00
2,130,217 2,130,217.00
Purchase Cost of Cash Total
Date Securities Deposit Escrow Cost
05/04/2009 2,130,217 21.03 2,130,238.03
2,130,217 21.03 2,130,238.03
Apr7,2009 12:44pm Prepared by Roosevelt & Cross, lncorporated(s) (Finance6.011 nys:R29899) Page11
ESCROW CASH FLOW
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (05/01/2010 - 2018)
REFUNDING OF 05/01/1999 BONDS (05/01/2010 - 20'~9)
(BANK QUALIFIED); (NON-CALLABLE)
UNENHANCED - As3 UNDERLYING
Net Escrow
Date Principal Interest Receipts
06~03~2009 2,180,21700 262.63 2,130,479.63
2,130,217.00 262.63 2,130,479.63
Escrow Cost Summary
Purchase date
Purchase cost of securities
05/04/2009
2,130,217.00
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6.011 nys:R29899) Page 12
ESCROW SUFFICIENCY
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (05/01/2010 - 2018)
REFUNDING OF 05/01/1999 BONDS (05/01/2010 - 2019)
(BANK QUALIFIED); (NON-CALLABLE)
UNENHANCED - Aa3 UNDERLYING
Escrow Net Escrow Excess Excess
Date Requirement Receipts Receipts Balance
0510412009 21,03 21.03 21.03
06~03~2009 2,130,480.66 2,130,479.63 -1.03 20.00
2,130,480.66 2,130,500.66 20.00
Apr7,2009 12:44pm Prepared by Roosevelt & Cross, lncorporated(s) (Finance6011 nys:R29899) Page13
ESCROW STATISTICS
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (05/01/2010 - 2018)
REFUNDING OF 05/01/1999 BONDS (05/01/2010 - 2019)
(BANK QUALIFIED); (NON-CALLABLE)
UNENHANCED - Aa3 UNDERLYING
Modified Yield to Yield to Perfect Value of
Total Duration Receipt Disbursement Escrow Negative Cost of
Escrow Escrow Cost (years) Date Date Cost Arbitrage Dead Time
REFUNDING BONDS, Global Proceeds Escrow:
1,034,492.90 0080 0.153097% 0.153097% 1,032,364.95 2,127.93 0.02
1,095,74513 0.080 0153095% 0153095% 1,093,491 18 2,253.93 0.02
2,130,238.03 2,125,856.13 4,381,86 0.04
Delivery date 05/04/2009
Arbib-age yield 2.727616%
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6011 nys:R29899) Page 14
Date
PROOF OF ARBITRAGE YIELD
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (0510112010 - 2016)
REFUNDING OF 05/01/1999 BONDS (05/01/2010 - 2019)
(BANK QUALIFIED); (NON-CALLABLE)
UNENHANCED - Aa3 UNDERLYING
Debt Service Total
Present Value
to 05/04/2009
@ 2.7276158%
11/01/2009 31,214.68 31,214.68 30,801.65
05/01/2010 241,743.75 241,743.75 235,335.51
11/01/2010 29,643.75 29,643.75 28,469.67
05/01/2011 259,643.75 259,643.75 246,005.18
11/01/2011 27,343.75 27,343.75 25,558.86
05/01/2012 247,343.75 247,343.75 228,087.50
11/01/2012 25,143.75 25,143.75 22,874.29
05101/2013 245,143.75 245,143.75 220,016.64
11/01/2013 22,668.75 22,668.75 20,071.48
05/01/2014 247,668.75 247,668.75 216,341.63
11/01/2014 19,856.25 19,856 25 17,111 31
05/01/2015 244,856 25 244,856.25 208,168.13
11/01/2015 16,762.50 16,762.50 14,059.15
05/01/2016 241,762.50 241,762.50 200,044.28
11/01/2016 13,387.50 13,387.50 10,928.33
05/01/2017 233,387.50 233,387.50 187,952.87
11/01/2017 7,887.50 7,887.50 6,266.54
05/01/2018 242,887.50 242,88750 190,375.35
11/01/2018 2,012.50 2,01250 1,556.18
05~01/2019 117,012.50 117,012 50 89,263 10
2,517,370.93 2,517,370.93 2,199,287.65
Proceeds Summary
Delivery date
Par Value
Premium (Discount)
Target for yield calculation
05/04/2009
2,125,000.00
74,287.65
2,199,287,65
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6.011 nys:R29899) Page 15
PROOF OF COMPOSITE ESCROW YIELD
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/199B BONDS (05/01/2010 -2018)
REFUNDING OF 05/01/1999 BONDS (0510112010 - 2019)
(BANK QUALIFIED); (NON-CALLABLE)
UNENHANCED - Aa3 UNDERLYING
All restricted escrows funded by bond proceeds
Present Value
Security to 05/04/2009
Date Receipts @ 0.1530962%
06/03/2009 2,130,47963 2,130,217.00
2,130,479.63 2,130,217.00
Escrow Cost Summary
Purchase date
Purchase cost of securities
Target for yield calculation
05~04~2009
2,130,217.00
2,130,217.00
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6.011 nys:R29899) Page 16
BOND SUMMARY STATISTICS
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (05/01/2010 - 2018)
REFUNDING OF 05/01/1999 BONDS (0510112010 -2019)
(BANK QUALIFIED); (NON-CALLABLE)
UNENHANCED - Aa3 UNDERLYING
Dated Date
Delivery Date
Last Maturity
05/04/2009
05/04/2009
05~01/2019
Arbi~'age Yield
True Interest Cost (TIC)
Net Interest Cost (NIC)
All-In TIC
Average Coupon
2.727616%
2.879379%
2.965072%
3.373851%
3.482389%
Average Life (years)
Duration of Issue (years)
5.302
4.873
ParAmount
Bond Proceeds
Total Interest
Net Interest
Total Debt Service
Maximum Annual Debt Service
Average Annual Debt Service
2,125,000.00
2,199,287 65
392,370.93
334,083.28
2,517,370.93
286,987.50
251,947.05
Underwdter's Fees (per $1000)
Average Takedown
Other Fee
7,529412
Total Underwriter's Discount
7.529412
9id Price 102.742948
Par Average Average
Bond Component Value Price Coupon Life
Serial Bonds 2,125,000.00 103.496 3.482% 5302
2,125,000.00 5.302
Par Value
+ Accrued Interest
+ Premium (Discount)
- Underwriter's Discount
- Cost of Issuance Expense
- Other Amounts
Ail-In Arbi~-age
TIC TIC Yield
2,125,000.00
74,287.65
-16,00000
2,125,000.00
74,287.65
-16,000.00
-51,000.00
2,125,000.00
74,287.65
Target Value 2,183,287.65 2,132,287.65 2,199,287.65
Target Date 05/04/2009 05/04f2009 05/04/2009
Yield 2.879379% 3373851% 2.727616%
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6011 nys:R29899) Page 17
FORM 8038 STATISTICS
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (05/01/2010 - 2018)
REFUNDING OF 05/01/1999 BONDS (05/01/2010 -2019)
(BANK QUALIFIED); (NON-CALLABLE)
UNENHANCED - Aa3 UNDERLYING
Dated Date 05/04/2009
Delivery Date 05~04~2009
Bond Component
Redemption
Date Principal Coupon Pdce Issue Price at Maturity
Serial Bonds:
05/01/2010 210,000.00 2.000% 100.934 211,961.40 210,000.00
05/01/2011 230,000.00 2.000% 101~312 233,017.60 230,000.00
05/01/2012 220,000.00 2.000% 101.222 222,688.40 220,000.00
05/01/2013 220,000.00 2.250% 100.954 222,098.80 220,000.00
05/01/2014 225,000.00 2.500% 100.467 226,050.75 225,000.00
05/01/2015 225,000.00 2.750% 100.827 226,860.75 225,000.00
05/01/2018 225,000.00 3000% 100.818 226,84050 225,000.00
05/01/2017 220,000.00 5.000% 113.358 249,38760 220,000.00
05/01/2018 235,000.00 5.000% 113.133 265,862.55 235,000.00
05/01/2019 115,000.00 3.500% 99.582 114,519.30 115,000.00
2,125,000.00 2,199,287.65 2,125,000.00
Stated Weighted Net
Maturity Interest Issue Redemption Average Interest
Date Rate Price at Matudty Maturity Yield Cost
Final Matudty 05/01/2019 3.500% 114,519.30 115,000.00
Entire Issue 2,199,287.65 2,125,000.00 5.3783 2.7276% 2.6891%
Proceeds used for accrued interest
Proceeds used for bond issuance costs (including underwriters' discount)
Proceeds used for credit enhancement
Proceeds allocated to reasonably required reserve or replacement fund
Proceeds used to currently refund prior issues
Proceeds used to advance refund prior issues
Remaining weighted avenge maturity of the bonds to be currently refunded
Remaining weighted average maturity of the bonds to be advance refunded
0.00
67,O00.00
0.00
Q00
2,130,238.03
0.00
5.3996
0.0000
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6.011 nys:R29899) Page 18
FORM 8038 STATISTICS
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (05/01/2010 - 2018)
REFUNDING OF 05/01/1999 BONDS (05/01/2010 - 2019)
(BANK QUALIFIED); (NON-CALLABLE)
UNENHANCED - Aa3 UNDERLYING
Refunded Bonds
Bond
Component Date Principal Coupon Price Issue Price
Agricultural Land Preservation Serial Bonds, 1998:
SERIALS 05/01/2010 100,000.00 4.850% 102276 102,276.00
SERIALS 05/01/2011 110,000.00 4.850% 101.357 111,492.70
SERIALS 05/01/2012 110,000.00 4.850% 100.448 110,492.80
SERIALS 05/01/2013 110,000.00 4.850% 100.000 110,000.00
SERIALS 05/01/2014 110,000.00 4.875% 99.722 109,694.20
SERIALS 0510112015 120,000.00 4.875% 99.143 118,971.60
SERIALS 05/01/2016 120,000.00 4,875% 98.527 118,232.40
SERIALS 05/01/2017 120,00000 4.875% 98477 118,17240
SERIALS 05/01/2018 120,000,00 4.875% 98.430 118,116.00
1,020,000.00 %017,448,10
Open Space Preservation Serial Bonds, 1999:
SERIALS 05/01/2010 90,000.00 4.700% 102.583 92,324.70
SERIALS 05/01/2011 100,000.00 4.700% 101.831 101,831.00
SERIALS 05/01/2012 100,000.00 4,700% 101.368 101,368.00
SERIALS 05/01/2013 100,000,00 4.700% 100.909 100,909.00
SERIALS 05/01/2014 110,000,00 4.700% 100.452 110,497.20
SERIALS 05/01/2015 110,000.00 4.700% 100.000 110,000.00
SERIALS 05/01/2016 110,000,00 4.700% 99.419 109,360.90
SERIALS 05/01/2017 110,000.00 4.700% 99.398 109,337.80
SERIALS 0510112018 120,000.00 4.700% 98.762 118,514,40
SERIALS 05/0~/2019 120,000.00 4.700% 98.722 118,466.40
1,070,000.00 1,072,609.40
2,090,000.00 2,090,057.50
Remaining
Last Weighted
Call Issue Average
Date Date Maturity
Agricultural Land Preservation Serial Bonds, 1998 06/03/2009 05/19/1998 5 0977
Open Space PreservatJon Serial Bonds, 1999 06/03/2009 05/18/1999 5.6859
All Refunded Issues 06/03/2009 5 3996
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6.011 nys:R29899) Page 19
SOURCES AND USES OF FUNDS
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 1998 BONDS (05/01/2010 -2018)
Dated Date 05104/2009
Delivery Date 05/04/2009
Bond Proceeds:
Par Amount 1,030,000.00
Premium 37,974.30
1,067,974.30
Refunding Escrow Deposits:
Cash Deposit
SLGS Purchases
Delivery Date Expenses:
Cost of Issuance
Underwdter's Discount
Other Uses of Funds:
Additional Proceeds
10.90
t,034,482 O0
1,034,492.90
24,720.00
7,755.29
32,475.29
1,006.11
1,067,974.30
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6.011 nys:R29899) Page 20
SUMMARY OF REFUNDING RESULTS
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 1998 BONDS (05/01/2010 - 2018)
Dated Date
Delivery Date
Arbitrage yield
Escrow yield
Bond Par Amount
True Interest Cost
Net Interest Cost
Ail-In TIC
Average Coupon
Average Life
Par amount of refunded bonds
Average coupon of refunded bonds
Average life of refunded bonds
PV of prior debt to 05/04/2009 @ 2727616%
Net PV Savings
Percentage savings of refunded bonds
Percentage savings of refunding bonds
05/04/2009
05/04/2009
2.727616%
0.153097%
1,030,000.00
2.793522%
2.883619%
3.312733%
3.470805%
4.997
1,020,000.00
4.869808%
5,129
1,122,633.98
60,223.52
5.904267%
5.846944%
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6.011 nys:R29899) Page 21
SAVINGS
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 1998 BONDS 05/01/2010 -2018)
Present Value
Prior Refunding Annual to 05~04~2009
Date Debt Service DebtSeP/ice Savings Savings @ 2.7276158%
11/01/2009 24,808.75 14,922.08 9,88667 9,755.85
12/31 ~2009 9,886.67
05/01/2010 124,808.75 125,175.00 -366.25 -356.54
11/01/2010 22,383.75 14,075.00 8,308.75 7,979,67
12/31/2010 7,942.50
05/01/2011 132,383.75 134,07500 -1,691.25 -1,602.41
11/01/2011 19,716.25 12,875.00 6,841.25 6,394.68
1 2/31/2011 5,150.00
05/01/2012 129,716.25 127,875.00 1,841.25 1,697.90
11/01/2012 17,048.75 11,725.00 5,323.75 4,843.23
12/31/2012 7,165.00
05/01/2013 127,048.75 126,72500 323.75 290.57
11/01/2013 14,381.25 10,431.25 3,950.00 3,497.43
12/31/2013 4,273 75
05/01/2014 124,381,25 120,431 25 3,95000 3,45037
11/01/2014 11,700.00 9,056.25 2,64375 2,278.28
1 2/31/2014 6,593~75
05/01/2015 131,700,00 124,05625 7,643.75 6,498.45
11/01/2015 8,775.00 7,47500 1,300.00 1,090.34
12/31/2015 9,943.75
05/01/2016 128,775.00 122,475.00 6,300.00 5,212.88
11/01/2016 5,850.00 5,750.00 100.00 81.63
12/31/2016 6,400.00
05/01/2017 125,850.00 120,750.00 5,100.00 4,107.16
11/01/2017 2,925.00 2,875.00 50.00 39.72
1 2/31/2017 5,150.00
05/01/2018 122,925,00 117,875~00 5,050.00 3,958.19
12/31/2018 5,050.00
1,275,177.50 1,208,62208 66,555.42 66,555.42 ~9,217.41
Savinqs Summary
PV of savings from cash flow
Plus: Refunding funds on hand
59,217.41
1,006.11
Net PV Savings 60,223.52
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6.011 ny$:R29899) Page 22
Bond Component
Serial Bonds:
BOND PRICING
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 1998 BONDS (05/01/2010 - 2018)
Maturity
Date Amount Rate Yield
Price
05/01/2010 110,000 2000% 1.050% 100.934
05/01/2011 120,000 2.000% 1330% 101.312
05/01/2012 115,000 2.000% 1.580% 101.222
05/01/2013 115,000 2.250% 2.000% 100.954
05/01/2014 110,000 2500% 2.400% 100.467
05/01/2015 115,000 2.750% 2.600% 100.827
0510112016 115,000 3.000% 2870% 100.818
05/01/2017 115,000 5.000% 3.100% 113.358
05/01/2018 115,000 5.000% 3.300% 113.133
Dated Date
Deiivery Date
First Coupon
Par Amount
Premium
Production
Underwriter's Discount
Purchase Price
Accrued Interest
Net Proceeds
05/04/2009
05/04/2009
11/01/2009
1,030,000.00
37,974.30
1,067,974.30 -7,755.29
1,060,219.01
1,060,21901
103.686825%
-0.752941%
102.933884%
1,030,000
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6.011 nys:R29899) Page 23
BOND DEBT SERVICE
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 1998 BONDS (05/01/2010 -2018)
Period Annual
Ending Principal Coupon Interest Debt Sen/ice Debt Service
11/01/2009 14,922.08 14,922.08
12/31 ~2009 14,922.08
05/01/2010 110,000 2.000% 15,17500 125,175.00
11/01/2010 14,075.00 14,075.00
12/31/2010 139,250.00
05/01/2011 120,000 2.000% 14,075.00 134,075.00
11/01/2011 12,875.00 12,875.00
12/31/2011 146,950.00
05/01/2012 115,000 2.000% 12,875.00 127,875.00
11/01/2012 11,725.00 11,725.00
1 2/31/2012 139,600.00
05/01/2013 115,000 2.250% 11,725.00 126,725.00
11/01/2013 10,431.25 10,431.25
1 2/31/2013 137,156.25
05/01/2014 110,000 2 500% 10,431 25 120,431 25
11/01/2014 9,056.25 9,056 25
1 2/31/2014 129,487.50
05/01/2015 115,000 2.750% 9,056.25 124,056.25
11/01/2015 7,475.00 7,475.00
12/31/2015 131,531.25
05/01/2016 115,000 3.000% 7,47500 122,475.00
11/01/2016 5,750.00 5,750.00
1 2/31/2016 128,225.00
05/01/2017 115,000 5.000% 5,750.00 120,750.00
11/01/2017 2,875.00 2,875.00
12/31/2017 123,625.00
05/01/2018 115,000 5,000% 2,875.00 117,875,00
1 2/31/2018 117,875.00
1,030,000 178,622.08 1,208,622.08 1,208,622.08
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, incorporated (s) (Finance 6.011 nys:R29899) Page 24
EIC
Date
Cashflow
Present Value
to 05/04/2009
@ 27276158%
11/01/2009 31,214.68 30,801.65
05/01/2010 241,743.75 235,335.51
11/01/2010 29,643.75 28,469.67
05/01/2011 259,643.75 246,00518
11/01/2011 27,343.75 25,558.86
0510112012 247,343.75 228,087.50
11/01/2012 25,143.75 22,874.29
0510112013 245,14375 220,016.64
11/01/2013 22,668.75 20,07146
05/01/2014 247,668.75 216,341 63
11/01/2014 19,856.25 17,111.31
05/01/2015 244,856.25 208,168.13
11/01/2015 16,762.50 14,059.15
05/01/2016 241,762.50 200,044.28
11/01/2016 13,387.50 10,928.33
05/01/2017 233,387.50 187,95287
11/01/2017 7,887.50 6,266.54
05/01/2018 242,887.50 190,375.35
11/01/2018 2,012 50 1,55618
05/01/2019 117,012.50 89,263 10
2,517,37093 2,199,287.65
Summary
Valuation date
Amount
Target for yield calculation
05/04/2009
2,199,287.65
2,199,28765
Apr 7, 2009 12:43 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6.011 ) Page 1
SUMMARY OF BONDS REFUNDED
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 1998 BONDS (05/01/2010 ~ 2018)
Maturity Interest Par Call
Bond Date Rate Amount Date
Agricultural Land Preservation Serial Bonds, 1998, 1998:
Call
Pdce
SERIALS 05/01/2010 4.850% 100,000.00 06/03/2009 101.000
05/01/2011 4850% 110,000.00 06~03~2009 101.000
05/01/2012 4.850% 110,000.00 06~03~2009 101,000
05/01/2013 4.850% 110,000.00 06~03~2009 101.000
05/01/2014 4.875% 110,000,00 06/03/2009 101.000
05/01/2015 4875% 120,000,00 06~03~2009 101.000
05/01/2016 4.875% 120,000.00 06/03/2009 101.000
0510112017 4.875% 120,000.00 06/03/2009 101.000
05/01/2018 4.875% 120,000.00 06/03/2009 101.000
1,020,000.00
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6.011 nys:R29899) Page 25
PRIOR BOND DEBT SERVICE
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 1998 BONDS (05/0112010 - 2018)
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
11/01/2009 24,808.75 24,808.75
12/3112009 24,808.75
05/01/2010 100,000 4.850% 24,808.75 124,808.75
11/01/2010 22,383.75 22,383.75
1 2/31/2010 147,192.50
05/01/2011 110,000 4.850% 22,383.75 132,383.75
11/01/2011 19,716.25 19,716.25
12/31/2011 152,100.00
05/01/2012 110,000 4850% 19,716.25 129,716.25
11/01/2012 17,048.75 17,048.75
12/31/2012 146,765.00
05/01/2013 110,000 4,850% 17,048.75 127,048.75
11/01/2013 14,381,25 14,381.25
1 2/31/2013 141,430.00
05/01/2014 110,000 4 875% 14,381.25 124,381 25
11/01/2014 11,700,00 11,700.00
12/31/2014 136,081 25
05/01/2015 120,000 4.875% 11,700.00 131,700.00
11/01/2015 8,775.00 8,77500
1 2/31/2015 140,475 00
05/01/2016 120,000 4 875% 8,775.00 128,775.00
11/01/2016 5,850.00 5,85000
12/31/2016 134,625.00
05/01/2017 120,000 4.875% 5,850.00 125,850,00
11/01/2017 2,925.00 2,92500
1 2/31/2017 128,77500
05/01/2018 120,000 4,875% 2,925.00 122,925
1 2/31/2018 122,925.00
1,020,000 255,177.50 1,275,177.50 1,275,177.50
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6.011 nys:R29899) Page 26
SOURCES AND USES OF FUNDS
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 1999 BONDS (05/01/2010 -2019)
Dated Date 05/04/2009
Delivery Date 05/04/2009
Bond Proceeds:
Par Amount 1,095,000.00
Net Premium 36,313.35
1,131,313.35
Uses:
Refunding Escrow Deposits:
Cash Deposit
SLGS Purchases
10.13
1,095,735 00
1,095,745.13
26,280.00
8,244.71
34,524.71
Delivery Date Expenses:
Cost of Issuance
Underwdter's Discount
Ot~er Uses of Funds:
Additional Proceeds
1,043.51
1,131,313.35
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6.011 nye:R29899) Page 27
SUMMARY OF REFUNDING RESULTS
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 1999 BONDS (05/01/2010 -2019)
Dated Date
Deliver~ Date
Arbitrage yield
Escrow yield
Bond Par Amount
True Interest Cost
Net Interest Cost
All-In TIC
Average Coupon
Average Life
Par amount of refunded bonds
Average coupon of refunded bonds
Average life of refunded bonds
PV of prior debt to 05/04/2009 @ 2 727616%
Net PV Savings
Percentage savings of refunded bonds
Percentage savings of refunding bonds
05/04/2009
05~04~2009
2.727616%
0.153095%
1,095,000.00
2,952626%
3.033557%
3.426074%
3.492129%
5.590
1,070,000.00
4.700000%
5.721
1,179,510 57
44,683.00
4.175981%
4.080639%
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cro~, Incorporated (s) (Finance 6.011 nys:R29899) Page 28
SAVINGS
Town of Southold, NewYork
REFUNDING BONDS
REFUNDING OF 1999 BONDS (05/01/2010 - 2019)
Present Value
Prior Refunding Annual to 05/04/2009
Date Debt Service Debt Service Savings Savings @ 2.7276158%
11/01 ~2009 25,145. O0 16,292.60 8,852 40 8,735.27
12/31/2009 8,852.40
05/01/2010 115,145,00 116,568.75 -1,423.75 -1,386.01
11/01/2010 23,030.00 15,568.75 7,461.25 7,16574
12/31/2010 6,037.50
05/01/2011 123,030.00 125,568.75 -2,538.75 -2,405.39
11/01/2011 20,680,00 14,468.75 6,211 25 5,805.81
1 2/31/2011 3,672.50
0510112012 120,680.00 119,468.75 1,211,25 1,116.95
11/01/2012 18,330.00 13,418.75 4,911 25 4,467.96
12/31/2012 6,122.50
05/01/2013 118,330.00 118,418.75 -98.75 -79.65
11/01/2013 15,980.00 12,237.50 3,742.50 3~313.70
1 2/31/2013 3,653 75
05/01/2014 125,980,00 127,237.50 -1,25750 -1,098.44
11/01/2014 13,395.00 10,800.00 2,595.00 2,236.27
1 2/31/2014 1,337.50
05/01/2015 123,395.00 120,800.00 2,595.00 2,206.18
11/01/2015 10,810.00 9,287,50 1,522.50 1,276.96
1 2/31/2015 4,117 50
05/01/2016 120,810.00 119,287.50 1,522.50 1,259.78
11/01/2016 8,225.00 7,637.50 587.50 4'79 58
12/31/2016 2,110.00
05/01/2017 118,225.00 112,637.50 5,58750 4,499.76
11/01/2017 5,640.00 5,012,50 627,50 498.54
12/31/2017 6,215.00
05/01/2018 125,640.00 125,012.50 62'7.50 491.83
11/01/2018 2,820.00 2,012.50 807.50 624.40
12/31/2018 1,435.00
05/01/2019 122,920.00 117J312.50 5,807.50 4,430,26
12/31/2019 5,807.50
1,358,11000 1,308,748.85 49,36115 49,361.15 43,639.49
Savinos Summary
PV of savings from cash flow
Plus: Refunding funds on hand
43,639.49
1,043.51
Net PV Savings 44,683~00
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6.011 nys:R29899) Page 29
Bond Component
Serial Bonds:
BOND PRICING
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 1999 BONDS (05/01/2010 -2019)
Maturity
Date Amount Rate Yield
05/01/2010 100,000 2.000% 1050% 100.934
05/01/2011 110,000 2.000% 1 330% 101.312
05/01/2012 105,000 2.000% 1.580% 101.222
0510112013 105,000 2.250% 2,000% 100.954
05/01/2014 115,000 2.500% 2.400% 100.467
05/01/2015 110,000 2.750% 2.600% 100.827
0510112016 110,000 3.000% 2.870% 100.818
05/01/2017 105,000 5.000% 3.100% 113.358
05/01/2018 120,000 5.000% 3.300% 113.133
05/01/2019 115,000 3~500% 3.550% 99.582
Dated Date
Delivery Date
First Coupon
Par Amount
Premium
Production
Underwriter's Discount
Purchase Price
Accrued Interest
Net Proceeds
05/04/2009
05/04/2009
11/01/2009
1,095,000,00
36,31335
1,131,313.35 -8,244.71
1,123,068.64
1,123,068.64
103.316288%
-0.752942%
102.563346%
1,095,000
Apr7,2009 12:44pm Prepared by Roosevelt & Cross, lncorporated(s) (Finance6.011 nys:R29899) Page30
BOND DEBT SERVICE
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 1999 BONDS (05/01/2010 - 2019)
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
11/01/2009 16,292.60 16,292.60
12/31 ~2009 16,292.60
05/01/2010 100,000 2.000% 16,568.75 116,568.75
11/01/2010 15,568.75 15,568.75
1 2/31/2010 132,137.50
05/01/2011 110,000 2.000% 15,568.75 125,568.75
11/01/2011 14,468.75 14,468.75
12/31/2011 140,037.50
05/01/2012 105,000 2.000% 14,468.75 119,468.75
11/01/2012 13,418.75 13,418.75
12/31/2012 132,887.50
05/01/2013 105,000 2.250% 13,418.75 118,418.75
11/01/2013 12,237.50 12,237.50
1 2/31/2013 130,656 25
05/01/2014 115,000 2 500% 12,23750 127,23750
11/01/2014 10,800.00 10,800.00
1 2/31/2014 138,037.50
05/01/2015 110,000 2.750% 10,800.00 120,800~00
11/01/2015 9,287.50 9,287.50
12/31/2015 130,087 50
05/01/2016 110,000 3.000% 9,287.50 119,287.50
11/01/2016 7,637.50 7,637~50
1 2/31/2016 126,925 00
05/01/2017 105,000 5.000% 7,637.50 112,637.50
11/01/2017 5,01250 5,012.50
1 2/31/2017 117,650.00
05/01/2018 120,000 5.000% 5,012.50 125,012.50
11/01/2018 2,012.50 2,012.50
12/31/2018 127,025.00
05/01/2019 115,000 3.500% 2,012.50 117,012.50
12/31/2019 117,012.50
1,095,000 213,748.85 1,308,748.85 1,308,748.85
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6.011 nys:R29899) Page 31
SUMMARY OF BONDS REFUNDED
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 1999 BONDS (05/01/2010 - 2019)
Maturity
Bond Date
Interest Par Call
Rate Amount Date
Open Space Preservation Serial Bends, 1999, 1999:
SERIALS 05/01/2010 4.700% 90,000,00
05/01/2011 4.700% 100,000.00
05/01/2012 4.700% 100,000.00
05/01/2013 4.700% 100,000.00
05/01/2014 4.700% 110,000.00
05/01/2015 4.700% 110,000.00
05/01/2016 4.700% 110,000.00
05/01/2017 4.700% 110,000.00
05/01/2018 4.700% 120,000.00
05/01/2019 4 700% 120,000.00
06/03/~009
06/03/2009
06/03/2009
06~03~2009
06~03~2009
06~03~2009
06~03~2009
06/03/2009
06/03/2009
06/03/2009
1,070,000.00
Call
Pdce
102.000
102000
102.000
102.000
102.000
102.000
102.000
102.000
102.000
102.000
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6011 nys:R29899) Page 32
Period
Ending
PRIOR BOND DEBT SERVICE
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 1999 BONDS (05/01/2010 -2019)
Annual
Debt Debt
Principal Coupon Interest Service Service
11/01 ~2009 25,145 25,145
12/31 ~2009 25,145
05/01/2010 90,000 4.700% 25,145 115,145
11/01/2010 23,030 23,030
1 2/31/2010 138,175
05/01/2011 100,000 4.700% 23,030 123,030
11/01/2011 20,680 20,680
1 2/31/2011 143,710
05/01/2012 100,000 4 ~700% 20,680 120,680
11/01/2012 18,330 18,330
12/31/2012 139,010
05/01/2013 100,000 4 700% 18,330 118,330
1110112013 15,980 15,980
1 2/31/2013 134,310
05/01/2014 110,000 4.700% 15,980 125,980
11/01/2014 13,395 13,395
1 2/31/2014 139,375
05/01/2015 110,000 4 700% 13,395 123,395
11/01/2015 10,810 10,810
12/31/2015 134,205
05/01/2016 110,000 4700% 10,810 120,810
11/01/2016 8,225 8,225
1 2/31/2016 129,035
05/01/2017 110,000 4700% 8,225 118,225
1110112017 5,640 5,640
1 2/31/2017 123,865
05/01/2018 120,000 4.700% 5,640 125,640
11/01/2018 2,820 2,820
1 2/31/2018 128,460
05/01/2019 120,000 4 700% 2,820 122,820
1 2/31/2019 122,820
1,070,000 288,110 1,358,110 1,358,110
Apr 7, 2009 12:44 pm Prepared by Roosevelt & Cross, Incorporated (s) (Finance 6.011 nys:R29899 Page 33
REGISTERED
NO. R-
APPENDIX B- 1
Bond Form
UNITED STATES OF AMERICA
STATE OF NEW YORK
COUNTY OF SUFFOLK
TOWN OF SOUTHOLD
REGISTERED
$
REFUNDING SERIAL BOND-2009
MATURITY DATE
May 1,
INTEREST
RATE
DATE OF ORIGINAL CUSIP
ISSUE NUMBER
% May 4, 2009
REGISTERED OWNER: CEDE & CO.
PRINCIPAL SUM:
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 May 4, 2009 or from the most recent interest payment date to
which interest has been paid, at the iNTEREST RATE (stated above), payable November 1,
2009 and semiannually thereafter on May 1 and November 1. Interest hereon shall be payable
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 at the close of business on
the fifteenth 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.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND
SET FORTH HEREiN.
560789. I 032681 CERT
The faith and credit of such Town of Southold 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 things required 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 (or a
facsimile thereof) to be affixed, imprinted, engraved, or otherwise reproduced hereon and
attested by the manual signature of the Town Clerk.
TOWN OF SOUTHOLD
(SEAL)
By
Supervisor
ATTEST:
Town Clerk
560789.1 032681 CERT
Town of Southold, New York
Refunding Serial Bond-2009
This bond is one of an authorized issue, the principal amount of which is
$2,125,000, 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"), the refunding
bond resolution duly adopted by the Town Board of the Town on February 24, 2009, authorizing
the issuance of refunding bonds of the Town for the refunding of certain outstanding bonds of
the Town, and a Certificate of Determination executed by the Supervisor as of April 7, 2009,
determining the temps, form and details of issuance of said refunding bonds (the "Bonds") and
providing for their private sale (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, by the registered owner
hereof in person, or by his attorney duly authorized in ~witing, upon the surrender of this bond
together with a written instrument of transfer or exchange satisfactory to the Town 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 are not subject to redemption prior to maturity.
560789.1 032681 CERT
The Town Board of the
Town of Southold, in the
County of Suffolk, New York
Ladies and Gentlemen:
Hawkins Delafield & Wood LLP
One Chase Manhattan Plaza
New York, New York 10005
May 4, 2009
We have examined a record of proceedings relating to the authorization, sale and
issuance of $2,125,000 aggregate principal amount Refunding Serial Bonds-2009 ("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, the refunding bond resolution duly adopted by the
Town Board on February 24, 2009, authorizing the issuance of refunding bonds of the Town for
the refunding of certain outstanding bonds of the Town, and a Certificate of Determination
executed by the Supervisor as of April 7, 2009, determining the terms, form and details of
issuance of said refunding bonds and providing for their private sale. The Bonds are dated May
4, 2009 and mature on May 1, in the principal amounts in each of the following years, and bear
interest at the respective rates per annum payable November 1,2009 and semiannually thereafter
on May 1 and November 1, as set forth below:
Year of Principal Interest
Maturity Amount Rate
2010 $210,000 2.00%
2011 230,000 2.00
2012 220,000 2.00
2013 220,000 2.25
2014 225,000 2.50
2015 225,000 2.75
2016 225,000 3.00
2017 220,000 5.00
2018 235,000 5.00
2019 115,000 3.50
The Bonds are not subject to redemption prior to maturity.
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.
560789.1 032681 CERT
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 Town Supervisor, 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; such interest
however, is included in the adjusted current earnings of certain corporations for purposes of
calculating the alternative minimum tax imposed on such corporations. 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 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.
560789.1 032681 CERT
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 Bonds of said issue and, in our
opinion, the form of said Bonds 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,
560789,1 032681 CERT
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 ZIP 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 of a 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
560789.1 032681 CERT
APPENDIX C
AGREEMENT 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" or "Holders" 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 Agreement, including any official interpretations
thereof.
"Securities" shall mean the Issuer's $2,125,000 Refunding Serial Bonds-2009,
dated May 4, 2009 and delivered on the date hereof, maturing in various principal amounts on
May 1 in each of the years 2010 to 2019, inclusive.
"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 through 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
560789.1032681CER¥
thirty (30) days after they become available and in no event later than 360
days after the end of each fiscal year; and
(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:
(2) principal and interest payment delinquencies;
(3) non-payment related defaults;
(4)
unscheduled draws on debt service reserves reflecting financial
difficulties;
(5)
unscheduled draws on credit enhancements reflecting financial
difficulties;
(6)
substitution of credit or liquidity providers, or their failure to
perform;
(7)
adverse tax opinions or events affecting the tax-exempt status of
the Securities;
(8) modifications to rights of Securities holders;
(9) bond calls;
(10) defeasances;
(11) release, substitution, or sale of property securing repayment of the
Securities; and
(12) rating changes.
(iii)
to (a) each NRMSIR, or to the MSRB, and to (b) the State Information
Depository, in a timely manner, notice of a failure to provide by the date
set forth in Section 2(a)(i) hereof any Annual Information required by
Section 3 hereofi
(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
560789.1 032681 CERT
not undertake to commit to provide any such notice of the occurrence of any material event
except those events listed above.
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," "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.
Se_ction 5. Remedies. If the Issuer shall fail to comply with any provision of this
Agreement, 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
Agreement 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 Agreement; provided that the sole and exclusive remedy for breach of this
Agreement 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 Agreement shall not constitute
an event of default on the Securities.
Section 6. Parties in Interest. This Agreement 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
Agreement for any of the following purposes:
560789.1 032681 CERT
(a) to comply with or conform to any changes in Rule 15c2-12 (whether
required or optional);
(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 Aunual 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 Agreement 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 Agreement 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. Agreement to Constitute Written Agreement or Contract. This
Agreement 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 Agreement shall be governed by the laws of
the State of New York determined without regard to principles of conflict of law.
5607891032681CERT
IN WITNESS WHEREOF, the undersigned has duly authorized, executed and
delivered this Agreement as of May 4, 2009.
TOWN OF SOUTHOLD
By
Supervisor and Chief Fiscal Officer
560789.1032681CERT
OFFICIAL STATEMENT
NEW ISSUE - REFUNDING SERIAL BONDS MOODY'S INVESTOR SERVICE:Aa3
See "Bond Rating", herein
In the opinion of Hawla'ns Delafield & Wood LLP, Bond Counsel to the Town, under existing statutes and court decisions and assuming continuing
com~pliqnce, w~jth.ce, rtain tax c, ertificatio~ns described herein. (i) interest,~n the,Bonds is excluded from gross income for Federal income tax purposes pursuant
to oectton l uJ oJ tne lnternat Revenue Lode of1986, as amended (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; such interest, however, is included in the adjusted current earnings df
certain corporations for purposes of calculatin£ the alternative minimum tax imposed on such corporations. In additio~ in the opinion of Bond Counsel to the
Town, under existing, statutes, in, t. erest on the B~onds is exempt.from personal income taxes of New York State and its political subdivisions, including The City
of New York See Tax Matters ' herein.
The Bonds will is be designated by the Town as "qualifed tax-exempt obligations ' pursuant to the provision of Section 265 of the Code.
$2,125,000
TOWN OF SOUTHOLD
SUFFOLK COUNTY, NEW YORK
(the "Town")
REFUNDING SERIAL BONDS - 2009
[BOOK-ENTRY-ONLY BONDS]
Dated: Date of Delivery
Principal Due: May 1, 2010 - 2019, inclusive
Interest Due: November 1,2009 and semi-annually thereafter
on Ma~' 1 and November 1 in eacfiyear until
maturity.
Price or Price or Price or
Amount~ Maturity Rate Yield. Amount Maturity Rate Yield Amount Maturity Rate Yield
$ 210,000 2010 2.00% 1.05% $ 225,000 2014 2.50% 2.40% $ 220,000 2017 5.00% 3.10%
230,000 2011 2.00 1.33 225,000 2015 2.75 2.60 235,000 2018 5.00 3.30
220,000 2012 2.00 1.58 225,000 2016 3.00 2.87 115,000 2019 3.50 3.55
220,000 2013 2.25 2.00
Securit~ and Sources of P.ayment: The Bonds will constitute general obligations of the Town and will contain a pledge, of
its faith and credit for the punctual pa _~ment of the principal of and inierest on the Bonds, and all the taxable real property within
the Town will be subject to the levy of ad valorem taxes, without limitation as to rate or amount, for such purpose.
Prior Redemption: The Bonds will not be subject to redemption prior to maturity.
of'~aa~F~°'r~an~d~-D~e--n'°mina-tj°~n? T~he B~nds w~ill I~e~issued as r~,e,~e~r.,ed..bpnds~, an, d,.w. hen~iss,ued, will be registered in the name
~ ~.~ o~ ~u, n~ nominee oI~ne ueposl~ory ~rust ~ompany ~ ~1~ )~ New ~or~, ~ew ~or~, which will act as the Securities
uepository rot the Bonds. Individual purchases of the Bonds may be made only in book-entry form in denominations of $5,000 or
i~gral multiples thereof. Bondholders will not receive certificates representin, their ownershi interest in p .
~Book-Entry-Only System" under "The Bonds," herein. _ o p the Bonds urchased
Payment: Payment of the principal of and interest on the Bonds to the Beneficial Owners of the Bonds will be made by DTC
Parti.cipan, ts and.l.ndir, ec,t,P~articipants in accordance with s. taqding instructions and customa.~ practices, ,,as is now the case with
munlc~p.,a~.,.s?cu~t,tes.,n~e~ ~or .~.e accounts, of custo.me, rs m bearer form or registered in street name. Payment will be the
respgnsmHIty ortne u~ rart~c~pant or Inalrect Panic,pant and not of DTC or the Town, subject to any statutory and regulato
requirements as may be in effect from time to time. See "Book-Entry-Only System" under "The Bonds'," herein.' _ ry
Bond coTuhne~°n~d-s~ ~a~e_.o_ff...ere~,d_ subject,.? thegn, al appr?v~n.~, o.p!ni, ons of .H.awk~ns ,Dela~eld, & Wood LLP, New York~ New Yorl~
....... . urtu cvrtatrt other conatttons. H ts expectea that aeiivery oJ the vonas in ooor-entryform will be made through the
facilities of DTC on or about May 4, 2009 in New Yor~, New York
THIS OFFICIAL STATEMENT IS IN A FORM "DEEMED FINAL" BY THE TOWN FOR THE PURPOSE OF SECURITIES AND
EXCHANGE COMMISSION RULE 15c2~12 (THE "RULE"). FOR A DESCRIPTION OF THE TOWN'S AGREEMENT TO PROVIDE
CONTINUING DISCLOSURE FOR THE BONDS, AS DESCRIBED IN THE RULE, SEE "DISCLOSURE UNDERTAKING" HEREIN.
ROOSEVELT & CROSS
INCORPORA TED
April 7, 2009
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. Kmpski, Jr.
Vincent M. Orlando
William P. Ruland
Thomas H. Wickham
Elizabeth A. Neville, Town Clerk
Peter W. Harris, Superintendem of Highways
John A. Cushman II, Town Comptroller
Jennifer A. Andaloro, Esq., Assistant Town Attorney
George Sullivan, Receiver of Taxes
BOND COUNSEL
Hawkins Delafield & Wood LLP
New York, New York
FINANCIAL ADVISOR
MUNISTAT SERVICES, 1NC. '
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. corn
No dealer, broker, salesman or other person has been authorized by the District to give anS'" information or to make any
representations, other than those contained in this Official Statement and if given or made, such other information or
representations must not be relied upon as having been authorized by the Dis~'ict. This Official Statement does not constitute an
offer to seal or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person in any jurisdiction in
which it is unlawful for such person to make such offer, solicitation or sale. The information set f~'th herein has been obtained
by the Dis~ict from sources which are believed to be reliable but it is not guaranteed as to accuracy or completeness. The
information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official
Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in
the affairs of the District since the date hereof.
IN CONNECTION WITH THIS OFFEPdNG THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS
WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT A LEVEL ABOVE THAT WHICH MIGHT
OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABLIZING IF COMMENCED, MAY BE DISCONTINUED
AT ANYTIME.
TABLE OF CONTENTS
Page
THE BONDS ............................................................................... 1
Description of thc Bonds ..................................................................
Optional Redemption ..................................................................... l
Book-entry-only System .................................................................. 1
Certificated Bonds ....................................................................... 3
Authorization and Purpose ................................................................. 3
Refunding Financial Plan. 3
Sources and Uses of Bond Proceeds ......................................................... 4
Security and Source of Payment ............................................................ 4
Remedies Upon Default ................................................................... 4
THE TOWN ................... ' ............................................................ 5
General Information ...................................................................... 5
Government ............................................................................. 5
Employees .............................................................................. 5
ECONOMIC AND DEMOGRAPHIC INFORMATION ........................................... 6
Population Characteristics .................................................................. 6
Median Income of Families ................................................................ 6
Unemployment Rate Statistics .............................................................. 6
Selected Listing of Largar Employers ........................................................ 7
INDEBTEDNESS OF THE TOWN ............................................................ 7
Constitutional Requirements ............................................................... 7
Statutory Procedure ..................................................................... 7
Computation of Debt Limit and Calculation of Net Debt Contracting Margin ......................... 8
Trend of Town Indebtedness ............................................................... 9
Details of Short-Term Indebtedness Outstanding ............................................... 9
Debt Service Requirements - Outstanding Bonds and Refunding Bonds ............................. 9
Calculation of Estimated Overlapping and Underlying Indebtedness ............................... 10
Authorized But Unissued ltems ............................................................ 10
Capital Program ........................................................................ 10
Community Preservation Fund ............................................................ 11
Landfill Closure'f, and Postclosure Care Costs .................................................. 11
FINANCES OF THE TOWN ................................................................ i 1
Financial Statements and Accounting Procedures .............................................. 11
Fund Structure and Accounts ......................................................... 11
Basis of Accounting ................................................................ 12
Investment Policy ...................................................................... t2
Budgetary 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
TABLE OF CONTENTS
(continued)
Page
REAL PROPERTY TAX INFORMATION .................................................... 15
Real Property Taxes ..................................................................... 15
Tax Levy and Collection Record ........................................................... 15
Tax Collection Procedure ................................................................ 15
Tax Rates ............................................................................. 15
Large Taxable Properties ................................................................. 16
LITIGATION ............................................................................. 16
BONDHOLDER RISKS AND MARKET FACTORS AFFECTING FINANCINGS
OF THE STATE AND MUNICIPALITIES OF THE STATE ..................................... 17
TAX MATTERS ...........................................................................
Opinion of Bond Counsel ................................................................
Certain Ongoing Federal Tax Requirements and Cenificatious ................................... 18
Certain Collateral Federal Tax Consequences ................................................. 18
Original Issue Discount .................................................................. 18
Bond Premium ......................................................................... 18
Information Reporting and Backup Withholding ............................................... 19
Miscellaneous ......................................................................... 19
LEGAL MATTERS ........................................................................ 19
DISCLOSURE UNDERTAKING ............................................................. 19
VERIFICATION OF MATHEMATICAL COMPUTATIONS ..................................... 20
UNDERWRITING ......................................................................... 20
BOND RATING ........................................................................... 20
FINANCIAL ADVISOR .................................................................... 20
ADDITIONAL INFORMATION ............................................................. 21
APPENDIX A: FINANCIAL INFORMATION
APPENDIX B: FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED DECEMBER 31,
2007
OFFICIAL STATEMENT
TOWN OF SOUTHOLD
SUFFOLK COUNTY, NEW YORK
$2,125,000
REFUNDING SERIAL BONDS - 2009
[BOOK-ENTRY-ONLY BONDS]
This Official Statement and appendices thereto prosents certain information rolating to the Town of Southold,
in the County of Suffolk, in the State of New York (the "Town," "County" and "State," r~spectively) in connection
with the sale of $2,125,000 Refunding Serial Bonds - 2009 (the "Bonds").
Allquotations from and summaries and explanations &provisions of the Constitution and laws &the State
and acts and proceedings of the Town contained herein do not purport to be complete and are qualified in their
entirety by reference to the official compilations them&and all references to the Bonds and the proceedings &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
Tho Bonds will be dated date of delivery, and will mature in the principal amounts on May 1, in each of the
years 2010 to 2019, inclusive, as set forth on the inside cover page.
The Bonds will b~ issued in fully registered form and when issued will be r~,~istered in the name of Cede &
Co. as nomine~ of The Depository Trust Company, New York, New York ("DTC). DTC will act as Securities
Depository for the Bonds. Individual purchases of the Bonds may be made in book-~ntry form only, in denominations
of $$,000 or integral multiples thereof. Purchasers will not receive certificates representing their interest in the
Bonds.
Interest on the Bonds will be payable November 1, 2009 and semi-annually thereafter on May 1 and
November I in each year until maturity. Principal and interest will bepaid by the Town to DTC, which will in turn
remit such principal and interest to its Patticipants, 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 referredto there n.
The Record Date of the Bonds will be the fifteenth business day of the month preceding each interest
payment date.
Optional Redemption
The Bonds will not be subject to redemption, prior to maturity.
Book-entry-only System
DTC will act as securities deposito~ for the Bonds. The Bonds will be issued as fully-registered Bonds
registered in the name of Cede & Co. (DTC s parmarship 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 each series
&the Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC.
DTC, the world's largest securities depository, is a limited-purpose trust company organized under the New
York Banking Law a "banking organization" within the meaning of the New York Banking Law, a member of the
Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code,
and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934.
DTC holds an3 provides asset servicing for over 3.5 million issues of U.S. and non-U.S, equity issues, corporate and
municipal d,e, bt Issues, and money market instruments (,from over 100 countries) that DTC's participants ("Direct
Participants ) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales
and otfier securities transactions in deposited securities, through electronic computerized book-entry transfers and
pledges between Direct Participants' accounts. This eliminates the need for physical movement of securit, ies
certificates. Direct Participants include both U.S. and non-U.S, securities brokers and dealers, banks, trust companies,
clearing corporations, andcertain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust
& ClearingCorporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation
and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users
of its regulated subsidiaries. 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 indirectly ("Indirect Participants"). DTC has
Standard & Poor's hltshest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities
and Exchange Commission. More information about DTCan be found at www.dtcc.com and www.dtc.org.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receiv~
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 and Indirect Participants records. 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 of ownership interests in the Bonds are to be accomplished by entries made on the book.s of Dir.ect and
Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates
representing their ownership interests in Securities, except in the event that use of the book-entry system for the Bonds
is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the
name of DTC's vartnership nominee, Cede & Co., or such other name as may be requested by an authorized
representative ofDTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such o~er
DTC nominee do not effe,c,t any change in beneficial ownership. DTC has no knowledge of the actual Benenclal
Owners of the Bonds; DTC s records reflect only the identity of the Direct Participants to whose accounts su. ch Bon~ls
are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remmn
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
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be ~overned by
arrangements among them, subject to any statutory or regulatory requirements as may be in effect from tune 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
redeemed.
Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or
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 payab, le
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. .w.!th bonds held .for the
accounts of customers in bearer form or registered in "street name," and will be the respons~bd~ty of such Partlclp. ant
and not of DTC, Agent, or Issuer, subject to any statutory or regulatory requirements as may be in effect from ttme
to time. Payment of redemption proceeds, distributions, and dividend 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 will be the responsibility of DTC, and disbursement of such payments to the
Beneficial Owners will be the responsibility of Direct and Indirect Participants.
Payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an
authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of
funds and corresponding detail information from the Town, on payable.date in accor..dance with their respect!ye
holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be gove.rned by standing
instructions and custom _ary,,, practices, as is the case with bonds held for. the accounts of custome~ in be .arer 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 any 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 will be the responsibility of DTC, and disbursement
of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to the Bonds at any time bv givin[~
reasonable notice to the Town. Under such circumstances, in the event that a successor depository, is not o'btainea,
Bond certificates are required to be printed and delivered.
The Town may decide to discontinue use of the system of book-entry transfers through DTC (or a successor
securities depository). In that event, Bond certificates will be printed and delivered to DTC.
2
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 the Town takes no responsibility for the accuracy thereof.
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 of book-entry-only transfers through DTC at any time. In the event that such book-entry-
only system is discontinued, the fullo/ving provisions will ap. ply: the Bonds will be issued in registered form In
denominations of $5,000, or integral multiples thereof; 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 timepfior 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 Supervisor
authorizing the sale of the 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 and t,h,e Local Finance Law, and a r,e, funding bond resolution duly adopted by the Town
Boardon February 24, 2009 (the ' Refunding Bond Resolution ), authorizing the refunding of ail or a part of the
following:
Title
Agricultural Land Preservation
Open Space Preservation
Principal Amount
Outstanding
Principal Amount
to be Refunded
Maturities
to be Refunded
The 1998 and 1999 Bonds are referred to herein as the "Refunded Bonds".
The Refunding Bond Resolution authorizes the issuance of the Bonds to provide the funds necessary to effect
the refunding of the Refunded Bonds.
For further,i, nformation regarding bond authorizations of the Town for capital purposes and other matters
relating thereto see 'Indebtedness of the Town".
Refunding Financial Plan
The Refunding Financial Plan will permit the Town to realize, as a result of the issuance of the Bonds,
cumulative dollar and present-value debt service savings.
The net proceeds of the Bonds (after payment of the underwriting fee and other costs of issuance relating to
the Bonds), together with a cash deposit from the Town, will be used to purchase non-callable, direct obligations of
or obligatmns guaranteed by the United States of America (the "Government Obligations") which, together with
remalnmg cash proceeds from the sale of the Bonds, will be placed in an irrevocable trust fund (the "Escrow Fund")
to be held by The Bank of New York Mellon, (the "Escrow Holder") a bank located and authorized to do business
in the State, pursuant to the terms of an escrow contract by and between the Town and the Escrow Holder, dated as
of the delivery date of the Bonds (the "Escrow Contract"). The Government Obligations so deposited will mature
in amounts which, together with the cash so deposited, will be sufficient to pay the principal of, interest on and
applicable redemption premium of the Refunded Bonds on the dates of their redemption. The Refunding Plan requires
the Escrow Holder, pursuant to the refundingbond resolution of the Town and Escrow Contract, to pay the Refunded
Bonds at maturity or at the earliest date on which the Refunded Bonds may be called for redemption prior to maturity.
The holders of the Refunded Bonds will have a first lien on all investment income from, and maturing
~rincipal of the Government Obligations, along with other available monies held in the Escrow Fund. The Escrow
ontract shall terminate upon final payment by the Escrow Holder to the paying agents/fiscal agent for the Refunded
Bonds amounts from the Escrow Fund adequate for the payment, in full, of the Refunded Bonds, including interest
and the redemption premium payable with respect thereto.
Under the Refunding Plan, the Refunded Bonds will continue to be general obligations of the Town (although
the Refunded Bonds may be excluded in computingthe Town's debt limit). However,~nasmuch as the Government
Obligations held in the Escrow Fund will be sufficient to meet all required payments of principal, interest and
redemption premium requirements when required in accordance with the Refun&ng Plan, it is not anticipated that any
other source of payment will be required.
$1,120,000 $1,020,000 2010-2018
1,160,000 1,070,000 2010-2019
Sources and Uses of Bond Proceeds
Sources:
Par Amount of Bonds ..............................................
Original Issue Premium (Discount) ...................................
Uses~
Escrow Depo,sit ...................................................
Underwriters Discount ............................................
Allowance for Costs of Issuance and Contingency .......................
Total .........................................................
Security and Source of Payment
$2,125,000.00
74,287.65
$2,199,287.65
$2,130,238.03
16,000.00
53,049.62
$2,199,287.65
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 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 allthe 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
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
hppropri-ate 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 ora Bondholder's remedial
right to judicial enforcement otthe 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 anyprovision of the laws of the United States, now or hereafter in effect, for the
composition or adjustment ofmunicipalindebtedness. Subject to such consent, under the United States Constitution,
Congress has jurisdiction over such matters and has enacted amendments to the existing federal bankruptcy statute,
generally to the effect and with the purpose of affording municipal corporations, under certain circumstances, with
easier access to judicially approved edj ustment of debts, including judicial control over identifiable and unidentifiable
creditors.
In recent times, certain events and legislation affecting remedies on default have resulted in litigation. 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 principal of and interest on any indebtedness.
4
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
expendicaras 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 ocated 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 is primarily a rural resort area with substantial shopping facilities av.a!lable.at Greenpo~, ,at v~!,o .us
shopping centers within the Town, and at Riverhead just to the west. Some commercial services are avananie wlmm
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, ported plants and other ornamentals. A
substantial portion of these products are shippedb~ ferry across Long Island Sound for distribution throughout New
England. A number of vineyards have been estabhshed and wine-making is an important industry. Fishing and fish
processing are now growing industries due to improved transportation facilities, lhe Town is also a major summer
resort area, utilizing bays, inlets and Long lslandand 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 Shelter
Island.
Electric service is provided by the Long. Island Power Authority; gas service is provided by Kevspan Enerey
Corporation. Fire protection is the responsibility of volunteer fire and f~e 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 the provisions of the State Constitution, the Town operates pursuant to the Town Law, the General
MunicipalLaw, the Local Finance Law, other laws generally applicable to theTown, and any special laws specifically
applicable to the Town. Under such laws, there is no authority for the Town to have a charter, but pursuant to the
Town Law and other laws generally applicable to home rule, the Town may from time to time 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 B. oard,~which~cgns~ts of fi,ve m,em~ bers., electe~forr
a term of four years, and the Supervisor, who is the chief executive officer ot tlae lown, eiectea tot a term oi Iou
years. Such terms are staggered such that two or three councilmen are elected ever~ two years. All the Town Board
members are elected at large and there is no limitation to the number of terms eacn may serve.
Six inde endently governed school districts are located wholly or partially within the Town, which rely on their
own taxing po PvJers granted by the State to raise revenues. The school districts use the Town's assessment roll as their
basis for taxation of property located within the Town.
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. -"
Approximate Date Contract
Name of Union Membership Expires
Civil Service Employees Assoc ........................ 169 12-31 - 10
Police Benevolent Assoc ............................. 50 12-31-09
5
ECONOMIC AND DEMOGRAPHIC INFORMATION
Population Characteristics
The Town has had a population trend, as compared to the County and the State, as indicated below:
Year
Town of Suffolk New York
Southold County State
1970 ..................................... 16,804
1980 ..................................... 19,172
1990 ..................................... 19,836
2000 ..................................... 20,599
2007 ..................................... 22,852
1,127,030 18,241,391
1,284,231 17,557,288
1,321,977 17,990,455
1,419,369 18,976,457
1,504,947 19,297,729
Source: U.S. Bureau of the Census, Long Island Power Authority, New York State Department of Labor.
Median Income of Families
1980 1990 2000
Town $21,013 $43,082 $61,108
County 24,194 53,247 72,112
Stme 20,180 39,741 51,691
Source: U.S. Department of Commerce, Bureau of the Census.
Per Capita Money Income
1980 1990 2000
Town $8,258 $19,037 $ 27,619
County 7,576 18,481 26,577
State 7,496 16,501 23,389
Source: 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 (whtch includes the Town) is the County of Suffolk. The information set forth below with respect to
such County is included for information purposes only: It s~ho. uld not be imp.lied from the inclusion of such data in
this Statement that the Town is necessarily representattve of the County or race versa.
Annual Averages:
2004 .............................
2005 .............................
2006 .............................
2007 .............................
2008 .............................
Suffolk New York
County State
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 U~FSD .......................
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 afd 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 centare 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 during the year on its indebtedness and for the
amounts required in such year for the amortization and redemption of itsbonds and notes.
Debt Limit. Pursuant to the Local Finance Law, the Town has the power to contract indebtedness for any
Town purpose authorized by the Legislature of the State provided the aggregate principal amount thereof shall not
exceeoseven percentum otthe 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
facilities and cash or appropriations for current debt service. The Constitutional method for determining full valuation
consists of dividing me total assessed valuation of taxable real estate for a particular assessment roll by the final
equalization ratio established for such assessment roll by the State Office of Real Property Services (the "ORPS").
The State Legislature is required to prescribe the manner by which such ratio shall be determined. Averaee full
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 of the 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 incurrence of indebtedness, including bonds and
bond anticipation notes issued in anticipation of such bonds, by the adoption ora 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 to the Town voters at the discretion of the Town Board. If
the resolution is submitted to the Town ,Joters, 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 of obligations authorized by such bond
resolution except for alleged constitutional violations. The Town published the notice of estoppel on February 15,
2009.
7
Each bond resolution usually authorizes the construction, acquisition or installation of the object or purpose
to be financed, sets forth the plan 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 prior 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
~ssued 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' ~ssued.' (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.
Computation of Debt Limit and Calculation of Net Debt Contracting Margin
(As of April 2, 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 Limit - 7% of Average Full Valuation ...................................... 696,330,576
Inclusions:
Outstanding Bonds:
General Purposes ..................................................... 36,843,000a
Other ........................................................... -0-
Sub-Total ...........................................................
Bond Anticipation Notes .....................................................
Total Inclusions ........................................................
36.843.000
6.579,100
43,422,100
Exclusions:
Appropriations .........................................................
Other Exclusions ........................................................
Total Exclusions ........................................................
Total Net Indebtedness ......................................................
Net Debt Contracting Margin After Issuing the Bonds .............................
Percent of Debt Limit Exhausted ...............................................
2,398,300
2.398.300
41,023.800
$655~306.776
5.89%
a. Includes $22,141,600 issued for the preservation of open space. See "Community Preservation Fund" herein.
8
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 $12,299,098 $11,349,098
Bond Anticipation Notes ... 12,625,600 11,720,000 &244,000
Total Outstanding Debt ........ $19,140,600 $24,019,098 $19,593,098
Details of Short-Term Indebtedness Outstanding
Bond Anticipation Notes
MaturiW
04-17-09
09-04-09
09-04-09
06-05-09
Purpose
$25,020,000 $32,175,000
6,224,000 6,579,100
$31,244,000 $38,754,100
Various Capital Projects .....................................
Various Capital Projects .....................................
Various Capital Projects .....................................
Fishers Island Ferry District ..................................
Amount
$ 799,300~
4,280,000Y
299,800~
1,200,000v
Total ................................................ $ 6,579,100
a. To be redeemed from the proceeds of the Bonds sold on March 10, 2009, Notes to be sold on April 13, 2009 and available funds.
b. To be funded from the proceeds of bonds, renewal notes and from available funds.
Debt Service Requirements - Outstanding Bonds and Refunding Bonds
Net After
Fiscal Year Less: Debt Issuance of
Ending Outstanding Refunding Service to be Refunding
December 31: Debt Service Debt Service Sub-Total Refunded Bonds
2009 ..........
2010 ..........
2011 ..........
2012 ..........
2013 ..........
2014 ..........
2015 ..........
2016 ..........
2017 ..........
2018 .........
2019 .........
2020 .........
2021 .........
2022 .........
2023 .........
2024 .........
2025 .........
2026 .........
2027 ..........
2028 ..........
2029 ..........
2030 ..........
$ 17,520
02,047
43,657
381870
981557
441396
971185
561252
491381
191787
111308
361800
091213
55325
57~975
43}463
92;381
68~863
28}063
01~113
58~207
1,409~547
$31
271
286
272
267
267
261
255
241
244
117
215
388
987
488
812
525
619
150
275
900
012
0
0
0
0
0
0
0
0
0
0
0
$3,341
3,77:
3,73~
3,61
3,36~
3,31
735 $49
435 2851
644 2951
358 285
469 2751
921 275
3,251 804 2741
3,11 402 2631
3,09~ 656 2521
3,06, 687 2511
2,421 320 1221
2,13~ 800
2,10! 213
1,85:325
1,85' 975
1,84~ 463
1,792,381
1,568,863
1,528,063
1,501,113
1,458,207
1,409,547
954
367
810
775
740
456
680
660
640
385
820
0
0
0
0
0
0
0
0
0
0
0
Totals ...... $ 52,640,010 $ 2,517,371 $ 55,157,381 $ 2,633,287
3,298,781
3,488,068
3,434,834
3,325,583
3,090,729
3,036,465
2,984,124
2,847,742
2,838,016
2,813,302
2,305,500
2,136,800
2,109,213
1,855,325
1,857,975
1,843,463
1,792,381
1,568,863
1,528,063
1,501,113
1,458,207
1,409,547
$ 52,524,094
Calculation of Estimated Overlapping and Underlying Indebtedness
Overlapping
Units
County of Suffolk .....................
Village of Greenport ...................
School Districts:
Fishers Island .............
Greenport .................
Mattituck-Cutchogue .......
New Suffolk Common ......
Oyster Ponds ..............
Southold .................
Fire Districts:
Cutchogue .................
East Marion ...............
Fishers island ..............
Mattituck .................
Orient ....................
Southold ..................
Applicable Applicable
Date of Percentage Total Net
Report Applicable Indebtedness Indebtedness
12-11-08 3.71%
11-24-08 100.00
$41,794,819 $35,265,017
9,329,200 8,574,200
06-30-08 100.00 355,000 355,000
06-30-08 100.00 0 0
11-14-08 98.49 32,688,831 29,910,280
06-30-06 100.00 0 0
09-01-08 100.00 0 0
12-22-08 100.00 18,410,681 18,410,681
12-31-07 100.00 0 0
12-31-07 100.00 144,000 144,000
12-31-07 100.00 0 0
12-31-07 100.00 1,766,852 1,766,852
12-31-07 100.00 25,000 25,000
12-31-07 100.00 1,400,000 1,400,000
$105.914,383
$ 95,851,030
tM-mual Financial Reports on file with the Office of the State Comptroller, or more recently published Official
Statements.
Authorized But Unissued Items
The following Bonds are authorized but unissued:
Date
Authorized Purpose
Amount
02-25-03
02-27-07
08-28-07
Martituck Inlet Shore Erosion Study ................................. $ 82,750
Open Space Preservation: Non-Agricultural Land ...................... 10,000,000
Open Space Preservation: Agricultural Lands .......................... 4,000,000
Total ................................. ~
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 thereof. A summary of the Capital
Budget for 2009-2011 is set forth below:
Department 2009 2010 2011
General Town .................................... $ 234,400 $ 508,123 $ 179,750
Highway Dept .................................... 1,280,000
Solid Waste District ............................... 135,000
Wastewater Disposal District ........................ 750,000
Sources
$ 2.399,400 $ 508,123 $179.750
Appropriations ................................... $ 38,400
Grants 196,000
Town Debt ................................. 2.165,000
Total ...........................................
$ 2,399,400
$ 160,495 $ 39,750
347,628 140.000
$ 508,123 $179,750
10
Community Preservation Fund
In 1998, the voters of the five East End towns (East Hampton, Riverhead, Shelter !sland, Southampton, and
Southold) approved a referendum creating the Communit~ Preservation Fund, (the "Fund' ) which is a conservation
program to preserve open space and farmland in the five t6wns. 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 vac~ant
property, in 2006, the voters in afl five towns approved a referendum to extend the collection of the ta,x through 20~0.
The Fund facilitates a volumarv program whereby landowners can sell their land or the development rights
to the land to the respective towns at ffiir market value. The towns may issue bonds for purchases to be paid back
through the life of the Fund with the 2% tax revenues. When a town finances 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 repaid by the Fund; including an estimate of projected revenues of the
Fund during the period of indebtedness, an accounting~ofall 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 from
the Fund.
As of the date of this Official Statement, there are $22,141,600 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 landfilk state and federal regulations presently require the 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. The balance wasprovided through a State subsidized loan received in July, 2004 from the New York
State Environmental Facilities Corporation. Costs associated with postclosure care w 11 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 independent 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 December 31, 2003 and the Town has complied with
such requirements. This Statement established new financial reporting requirements for state and local governments
throughout the United States. It required new information and restructuring of much of the information that
governments have presented in the past. Comparability with reports issued in all prior years was affected.
Fund Structure and Accounts
The Town utilizes fund accounting to record and report its various service activities. A fund represents both
a legal and an accounting entity which segregates the transactions of specific programs in accordance with special
regulations, restrictions or limitations.
There are three basic fund types: (1) govermnental funds that are used to account for basic services and
capital projects; (2) proprietary funds that account for operations ufa commercial nature; and, (3) fiduciary funds that
account for assets held in a trustee capacity. Account groups, which do not represent funds, are used to record 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 governnaental 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 they become
"measurable" and "available" to finance expenditures to the current period. Revenues are susceptible to accrual
include 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 related
fund liability is incurred. An exception to this general rule is unmatured interest on general long-term debt which is
recognized when due.
Investment Policy
Pursuant to State law, including Sections 10 and 11 of the General Municipal Law (the "GML"), the Town
is generally permitted to deposit moneys in banks or trust companies located and authorized to do business in the
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 10 of the GML.
The Town may also temporarily invest moneys in: (1) obligations of the United States of America; (2)
obligations guaranteed by agencies of the United States of America where the payment of principal and interest are
guaranteed by the United States 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 uny 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 of a New York public benefit corporation which are made lawful
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 the proceeds will be needed to meet expenditures for pm'poses for which the moneys were provided und,
in the case ofobhgations purchased with the proceeds of bonds or notes, shall be payable or redeemable in uny 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, delivered to and held in custody of a bank or
trust company in the State pursuunt to a written custodial agreement as provided by Section 10 of the GML.
The Town Board has adopted an investment policy und such policy conforms with apl~licable laws of the State
governing the deposit and investment of public moneys. All deposits und investments o/the Town are made in
accordance with such policy.
Budgetary Procedures
The head of each administrative unit of the Town is required to file detailed estimates ofreveunes (other than
real property taxes) and expenditures for the next fiscal year with the budget officer (Supervisor) on or before August
15~h. Estimates for each fire district situated within the Town must also be filed with the budget officer by this arate.
After reviewing these estimates, the budget officer prepares a tentative budget which includes his recommendations.
A budget message explaining the main features of the budget is also prepared at this time. The tentative budget is
filed with the Town Clerk not later than the 30th of September. 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 und 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. Apublic heating, 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 may express his opinion concerning the
preliminary budget; however, there is no requirement orprowsion that the prehminary budget or any portion thereof
I~e voted on by members of the public. After the public hearing the Town Board may further change und revise the
preliminary budget. The Town Board, by resolution, adopts the preliminary budget as submitted or amended no later
than November 20th, 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 b~
the Town Comptroller. However, any changes or modifications to the annual budget including the transfer
appropriations among line items must [~e approved by resolution of the Town Board.
Budget Summaries for the 2008 and 2009 fiscal years may be found in Appendix A.
12
Financial Operations
The Supervisor f~nctions as the chief fiscal officer as provided in Section 2 of the Local Finance Law; in this
role, the Supervisor is responsible for the Town's accountin'g and financial reporting activities. In addition, the
Supervisor is also the Town's budget officer and must therefore prepare the armual tentative budget for submission
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 financial transactions such as operating and capital budgets andbonded debt.
Town finances are operatedprimarily through the General and Special Revenue Funds. The General Fund
receives most of its revenue from realproperty tax and State aid. Current operating expenditures are paid from these
funds subject to available appropriations. The Town also has refuse, sewer and wastewater districts, which are
accounted for within separate funds. The primary sources of income for these districts comes from special
assessments levied against district properties at the same time real estate taxes are levied. Capital projects and
equipment purchases .are accounted for in special capital projects funds. The Town observes a calendar year (January
1 through December .~ 1 ) for operating and reporting purposes.
Revenues
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 9,perating 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 major categories of expenditure for the Town are General Government Support, Public Safety,
Transportation Economic Assistance and Opportunity Home and Community Services, Culture and Recreation,
Employee Benefits and Debt Service. A summary of the expenditures for the five most recent y comp eted fiscal
years may be found in Appendix A.
Pension Systems
Substantially,,, all ,e, mployees of the Town are members of the New York State and L.o, cal E,,m,.ployees'
Retirement System (' ERS ) or the New York St,a, te and Local Police and Fire Retirement System ( PFRS ). (Both
Systemsarereferredtotogetherhereinafferasthe RetirementSystems"whereappropriate.} The Retirement Systems
are cost-sharing multiple public employer retirement systems. The obligatmn of employers and employees to
contribute and the benefits to employees are governed by the New York State Retirement bystem and Social Security
Law (the "Retirement System Lawr'). The Retirement Systems offer a wide range of plans and benefits which are
related to years of servi~e and final average salary, vesting of retirement benefits, death and disability benefits and
optional methods of benefit payments. Ail~oenefits generally vest after five years of credited service. The Retirement
System Law generally provides that all participating employers in each retirement system are jointly and severally
liable for an,,' unfunded investments. Such amounts are collected through annual billings to all_participating
employers. Generally, all employees, except certain part-time employees, participate in the Retirement bystems. The
Retirement Systems are non-contributory with respect to members hired prior to July 27, 1976. All employees who
became members on or after July 27, 1976 must contribute 3% of their gross annual salary towards the cost of their
retirement program. Chapter 86 of the Laws of 2000 eliminated the 3%for Tier 3 and Tier 4 members with 10 years
of service credSt.
A pension reform bill ',~as signed by the Governor into Law as Chapter 49 of the Laws of 2003 which changed
the cycle of billing to match budget cycles of the Town. Under the previous method, the Town was unsure of how
much it would have topay to ti~e sy. stem until after its budget was implemented. Under the new system the
contribution for a given fiscal year will be based on the value o~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.
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.
13
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 leg slation nto 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 15~h to Februar7 1 st, effective December 15, 2004. It increases,
from five to ten years the maximum amortization period of the portion of employer contributions that exceeds 7%
of ayroll for the 2004-2005 fiscal year of the Retirement System (April 1 - March 31). It also allows employers to
issPue bonds to finance their 2005-2006 and 2006-2007 fiscal year contributions in excess of 9.5% and 10.5%,
respect ve y This amortization may be made with the Retirement System or the Town could issue a maximum of 10-
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 pens on 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 exces.s 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 emplo~/ees. 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 acco,u, nt for pos[,~retirement healthcare benefits as it
accounts for vested pension benefits. GASB Statement No. 45 ( GASB 45 ) of the Governmental Accounting
Standards Board ("GASB"), described below, requires such accounting. A. ltho,ugh GASB 45 encoura, g, es earlier,
adoption, implementation is required by the following dates, based on me size or government measurea oy annum
revenue:
Annual Revenue Effective for Fiscal Year Ending After:
Greater than $100 million December 15, 2006
Between $10 million and $100 million December 15, 2007
Less than $10 million 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 un~ilateral reduction of benefits has
been extended annually andcontinued through May 15, 2009 pursuant to Chapter 4~ of the Laws of 2008. Legislative
attempts to provide similar protection to retirees of other local units of government in the State have not succeeded
as of this date. Nevertheless, many such retirees of all varieties of mumcipal units in the State do presently receive
such benefits.
GASB 45 and OPEB. OPEB refers to "other post-employment benefits" meaning other than pension
benefits, disability benefits and OPEB 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 financial statements.
GASB 45 will require municipalities and school districts to account for OPEB liabilities 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 the fact that most municipalities and school districts have
not set aside any funds against this liability. Unlike GASB 27, which covers accounting for pensions, GASB 45 does
not require muhicipalities or school districts to report a net OPEB obligation at the start.
Under GASB 45, based on actuaria va uation, 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 present value of
future benefits being earned by current employees) plus (b) amortization of the unfunded a~ccrued liability (benefits
14
already earned by current and former employees but not yet 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 liability is approximately $43 million. GASB 45 does not require that
the unfunded liabilitw actually be mnortized nor that it be advance funde~L only that the municipality or school district
account for its unfufided accrued liability, and compliance in meeting it~ 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 INFOPoMATION
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 tSscal years.
Tax Levy and Collection Record
Fiscal Year Ending December 31:
2005 2006 2007 2008 2009
Total Tax Levy, ................ $89,495,573
Amount Collected ............. 83,356,976
Returned to County
Amount .................... 2,138,597 3,106,068
Pementage .................. 2.39% 3.45%
Uncollected at End of Year
of Levy ................... None None
$89,934,663
86,628,595
$97,216.091 $103,216,66l $108,610,530
94,288}000 100,030,520 58.000 009a
2,928,091 3,186,141 NAa
3.01% 3.08% NAa
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 and payable in equal
installments on December 1 and May 10, but may be paid without penalty by January 10 and May 31, respectively.
The penalty added to delinquent taxes is one-twelfth the rate of interest determined by the State Commissioner of
Taxation and Finance. The rate is determined each year by July 15 based on the one-year constant maturity yield
index for United States Treasury securities for the quarter-year ending on the immediately preceding June 30. me
rate is effective for a twelve month period commencing August I each year and in no event will be less than ten per
centum per annum.
The Town receives its full levy before the end of its fiscal year. Uncollected amounts are not segregated by
the Town tax receiver, and any deficiency in tax collection is the County's liability.
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
Highway ...................... 38.37 40.68 39.63 41.74 39.75
15
Large Taxable Properties
2009 Assessment ~olla
.Narfle
Peconic Landing at Southold .......................
LILCO, LIPA, Marketspan, Keyspan .................
Village of Greenport-Power Plant ....................
Fishers Island Dev. Corp ...........................
Robins Island Holding LLC .........................
Alan Cardinale ..................................
North Fork Bank .................................
Damianos, Herodotus ..............................
New York Telephone .............................
Levin Family L~mited 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 Building
Vineyard
Utility
Motel& Restaurant
Farmland & Private Lands
Various Properties
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
$6.200,710b
a. Assessment Roil established in 2008 for levy. and collection of taxes during 2009 Fiscal Year.
b. Represc-nts approximately 5.69% of the total taxable ~sessed valuation of the Tow~ 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-two
property owners, alleging property damage in the fo..nm of erosion caused.by a. Town-owned jetty.. The Town is
engaged in studies to determtne the issues surrounding the alleged erosion, its causes, and posmble solutions.
Although this case was first filed in 1997, discovery has not been completed. The issues in this case are complex and
will require extensive expert testimony. The nature and extent offdamages, if any, are unknown at th~spoint.
Insurance coverage may be available for potential liability for alleged compensatory damages. The Town has denied
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 byplaintiffs, which sought substantially to
increase the zor~ing density of~arcel oflandowned by a developer plaintiff. Plaintiffs assert claims under the Fair
Housing Act Americans with Disabilities Act, State and Town Law, alleging housing discrimination against senior,
handicapped and disabled residents, who are also named as "Jane Doe" plmntiffs. Plaintiffs seek declaratory relief
granting their desired zoning, as well as compensatory and punitive damages in the amount of $60 million ( $5 million
for each of the six federal causes of action). Insurance coverage may be available for potential liability for alleged
compensatory damages. Both sides have filed summary judgment on liability issues only. The Town has deniedall
wrongdoing and intends vigorously to contest these claims.
East End Resources, LLC v. Town of Southold Planning Board. et al - This action arises from a residential
site plan application pending before the Town of Southold Plauning Board, seeking the approval of a multi-unit
planned retirement community (the "Application"). Plaintiff/Petittoner alleges that the Town, and its various
hgencies, have systematically' d~layed hhd 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 m~llion 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 possible noteworthy Notice of Claim has been filed against the Town relating to
police matters. In the Notice of Claim, the plaintiff demands $5 million in damages for physica,,1, emotional and c~vil
rights iniuries related to an, alleged incident, believed to be an arrest by Town police officers on or about Februarv
21, 2007 and prior arrests. Due to the vague nature of the allegations, the Town is not aware of any details of thi's
purported claim, and intends vigorously to contest it both prior to and after the institution ora lawsuit. As of the date
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 this Official Statement including its appendices in order to make an informed nvestment
decision. Investors should cons der, in particu ar, the following factors:
The Town's credit rating could be affected by circumstances beyond the Town's control. Economic conditions
such as the rate of unemployment and inflation termination of commercial operations by corporate taxpavers and
employers, as well as natural catastrophes could adversely affect the assessed valuat on of Town propert3 and its
ability to mainta n fund balances and other statistical indices commensurate with its current credii 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 of any Bonds. The price or principal value of the Bonds is dependent on the prevailing level of ~nterest rates.
If interest rates should increase the price ora bond or note may dechne causing the bond or noteholder to potentially
ncur a capita oss 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 bv a variety of
.factors, some of which are beyond the Town's control. There can be no assurance that adverse event~ in the State,
tncludmg, 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 of 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 municipal bonds,
including the Bonds, for income taxation purposes could have an adverse effect on the market value of the Bonds (see
"Tax Matters" herein).
TAX MATTERS
Opinion of Bond Counsel
In the opinion of Hawkins Delafield & Wood LLP Bond Counsel to the Town, under existing statutes and
court decisions and assuming continuing compliance with certain trax certifications described herein, (i) interest on
the Bonds is excluded from gross income for'Federal income tax purposes pursuant to Section 103 of the Internal
Revenue Code of 1986, as amended (the "Code") and (ii) interest on the Bonds is not treated as a preference tem
in calculating the alternative minimum tax imposed on individuals and corporations under the Code; such interest.
however, is included in the adjusted current earnings of certain corporations for purposes of calculating the alternative
minimum t,,m,x imposed on such corporations. The Arbitrage and Use of Proceeds Certificate of the Town (the "Tax
Certificate ), which will be delivered concurrently with the delivery of the Bonds will contain provisions and
procedures relating to compliance with applicable requirements of the Code In rendering ts opinion, Bond Counse
nas relied on certain representations, certffications of fact, and statements of reasonable expectat ons made by the
Town in connection with the Bonds, and Bond Counsel has assumed compliance by the Town with certain provisions
and procedures set forth in the Tax 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. The provisions of
the American Recovery and Reinvestment Act of 2009 relating to the treatment of interest on certain tax-exempt
bonds do not apply to the Bonds.
In addition, in the opinion of Bond Counsel to the Town, 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.
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,
anuassumes no obligation to update its opinion after the issue date to reflect any future action, fact or circumstance,
or change in law or interpretation, or otherwise. Bond Counsel expresses no opinion on the effect of any act on
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
Thc Code establishes certain significant ongoing requirements that must be met subsequent to thc issuance
and delivery of the Bonds in order that interest on such Bonds be and remain excluded from gross income under
Section 103 of the Code. These requirements include, but are not limited to, requirements rotating to use and
expenditure of gross .proceeds of the Bonds, yield and other restrictions on investments of grossprocecds, and the
a~bitrage rebate rcqmrement that certain excess earnings on gross proceeds be rebated to thc Federal government.
Nonco.m. pliancc with such requirements may cause interest on thc Bonds to become included in gross income for
Federal income tax purposes retroactive to [heir issue date. irrespective of the date on which such noncompliance
occurs or is discovered. Thc Town, in executing the Tax Certificate, will certify to thc effect that thc Town will
comply with thc provisions and procedures set forth 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 of the
Code.
Certain Collateral Federal Tax Consequences
Thc following is a brief discussion of certain collateral Federal income tax matters with respect to thc Bonds.
It does not purport to address all aspects of Federal taxation that may be relevant to a particular owner ora Bond.
Prospective investors, particularly those who may be subject to special rules, are advised to consult their own tax
advisors regarding thc Federal tax consequences of owning and d~sposing of thc Bonds.
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 compames,
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
thc 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" ("OLD") is the excess of the sum of all amounts payable at the stated maturi~ of
a Bond (excluding certain "qualified stated interest" that is unconditionally 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 thc Bonds ~s expected to be the initialpublic offering price set forth in this Official Statement. Bond
Counsel further is of the optnion that, for any Bondhaving OlD (a "Discount Bond"), OlD that has accrued and is
properly allocable to the owners of thc Discount Bond under Section 1288 of the Code is excludable from gross
~ncome for Federal income tax purposes to thc 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 )/ield method,
based on periodic compounding of interest over prescribed accrual periods using a compounding rate determined by
reference to the yield on that D~scount Bond. An owner's adjusted basis in a Discount Bond is increased by accrued
OlD 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
receivcdfor 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 local
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 a premium over the sam of all amounts payable on the Bond after the acquisition date (excluding
certain "qualified stated interest" that is unconditionally payable at least annually at prescribed rates), that premium
constitutes "bond premium" on that Bond (a "Premium Bond"). In general, under Section 171 of the Code, an owner
of a Premium Bond must amortize the bond premium over the remaining term of the Premium Bond, based on the
owner' s yield over the remaining term of the Premium Bond, determined based on constant yield principles (in certain
cases involving a Premium Bond callable prior to its stated maturity date, the amortization period andyield 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 the bond premium by offsetting the qualified stated interest allocable
to each interest accrual period under the owner's regular method of accounting agmnst the bond premium 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
18
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
tax purposes, including various special rules relating thereto, andstate and local tax consequences, in connection with
the acquisition, ownership, amortization of bond premium o~, 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
,g, eneral, such requirements are satisfied if the interest recipient co,,mpletes, and provides the payor with, a Form W-9.
Request for Taxpaver Identification Number and Certification or unless the recipient is one ufa limited class of
exempt recipients, ihcluding corporations. A recip, ient not otherwise exempt from information reporting who fails
to satisfy the information reporting requirements will be subject to "backup withholding," which means that the payor
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 n connection with the
establishment of such account as generally can be expected, no backup withholding should occur. In any event.
backup withholding does not affect the excludability of the interest on the Bonds from gross income for Federai
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.
LEGAL MATTERS
Legal matters incident to the authorization, issuance and sale of the Bonds will be subiect to the final
approving opinion of Hawkins Delafield & Wood LLP, Bond Counsel to the Town. Certain legal matters will be
passed on for the Town by its Assistant Town Attorney.
DISCLOSURE UNDERTAKING
This Official Statement is in a form "deemed final" by the Town for the purposes of Securities and Exchange
,,C, ommission Rule 15c2-12. At the time of the delivery of the Bonds, the Town wiI1 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 the benefit of holders of andowners of beneficial interests in the Bonds, to
provide, or cause to be provided:
(1) during any succeeding fiscal year of the Town in whic,,h, the Bonds are outstanding, to (a) each nationally
recognized municipal securities information repository ('NRMSIR") and (b) the New York State Information
Depository, if created, ("SID"), (i) certain annual financial information, in a form generally consistent with
the information contained or cross-referenced in this Official Statement under the headings: "The Town",
" ' 'g p ' , ,~.~, n, rmances of the own, Real
Economic and Demo. ra hm Information" "Indebtedness of th" q'^w ...... ' T ""
Property Tax Information", and "Litigation"; and in Appendix A, on orprior to the 180th day following the
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 the
unaudited financial statement shall be provided and an audited financial statement shall be delivered to each
NRMS1R and to the SID 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 re~fiecting financial difficulties; (iv) unscheduled draws on credit enhancements
reflecting financial difficulties; (v) substitution of credit or liquidity providers, or their failure to perform; (vi)
adverse tax opinions or events affecting the tax-exempt status of the 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.
19
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 not 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: re, de ,mptio,n
premiums, if any, and interest on the Bonds shall have been paid in full. The sole and exclusive remeay ~or nreacn
or default under the Undertaking is an action to compel specific 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 15c2-12
as then m effect.
The Town is in compliance with all previous undertakings made pursuant to Rule 15c2-12.
VERIFICATION OF MATHEMATICAL COMPUTATIONS
The accuracy of the mathematical computations (a) regarding the adequacy of the maturing principal of and
interest earned on the Government Obligations together with the uninvested cash, to pay, when due, the pnncipal of
and interest on and redemption premium, if any, with regard to the Refunded Bonds on the applicable payment dates
and (b) relating to the determination by Bond Counsel of compliance with the regulations and ~mlin, gs pro~mulgated°
under Section 148 of the Code, as amended, will be verified by Causey Demgen & Moore Inc. ~ucn verincation o~
the accuracy of the mathematical computations will be based, in part, upon factual information supplied by the
District and the Underwriter (as defined below).
UNDERWRITING
Roosevelt & Cross, Inc. (the "Underwriter'") has agreed, su.bject to.c.ertain conditions, to purchase the. Bon.d.s
from the District. The Underwriter's obligations are subject to certain conditions precedent, and the Underwriter will
be obligated to purchase all the Bonds if any of the Bonds are delivered at a purchase price of $2,183,287.65 which
represents the aggregate par amount of the Bonds, plus an original premium of $74,287.65 less an underwriting
discount of $16,000.00. The Bonds may be offered and sold to certain dealers (including dealers depositing such
Bonds into unit investment trusts) at prices lower than the.public offering prices as set forth on the cover page hereof.
The initial public offering prices may be changed from time to time by the Underwriter.
BOND RATING
Moody's Investors Services has assigned a rating of"Aa3" to the Bonds. Such rating reflects only the view
of such rating agency, and any desired explanation of the significance of such rating should be obtained from such
rating agency. Generally, a rating agency bases its ratings on the information and materials furnished to it and on
investigation, studies and assumptions by the rating agency. There is no assurance that aparticular rating will apply
for any given period of time or that it will not be loweredor withdrawn entirely if, in the judgment otthe 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 of a secondary market for such
Bonds. Such ratings should not be taken as a recommendation to buy or hold the Bonds.
FINANCIAL ADVISOR
Munistat Services, Inc. has assisted the District as financial advisor in certain matters with respect to the
preparation &this Official Statement.
20
ADDITIONAL INFORMATION
Additional information may be obtained upon request from the office of the Town Comptroller, John A.
Cushman II, Town of Sou, thold, Town Hall, P.O. Box 1179, Southold, New York 1 ! 971, telephone number 631/765-
4333 email:john.cushman~town.southold.ny.usor fromtheofficeofMunistat Services, lnc., 12RoosevcltAvenue,
Port Jefferson Station, New York 11776, telephone number 631/331-8888 and webs re: http://www.munistat.com.
Any statements in this Official Statement involving matters of opinion or estimates, whether or not expressly
so stated, arc intended as such and not as representations of fact. ~Io representation is made that any of such
statements will be realized. This Official Statement is not to bc construed as a contract or agreement between thc
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
April 7, 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 Inventory
Prepaid Expenses
Total Assets
.2.005
9,292,437
24,533
176,390
68
81,849
1,867,136
1,204
498,344
11,941,961
Fiscal Year Ending December 31:
2006
8,339,472
22,346
190,208
110,153
2,075,955
2,099
426,200
11,166,433
2OO7
21,437,689
17,263
74,500
62,377
826,834
1,275
460,951
22,880,889
LIABILITIES AND FUND EQUITY
Accounts Payable
Due to Other Funds
Due to Other Governments
Due to Trust Funds
Deferred Revenues
627,049
1,888,241
393,570
7,044
3,018,595
Total Liabilities
5,934,499
Fund Balances - Reserved:
Encumbrances
Insurance claims
Supply Inventory
Prepaid Expenses
Fund Balances - Unreserved:
Designated - Ensuing Year's Budget
Undesignated
4,009
1,105,879
1,204
498,344
2,657,200
1,740,826
701,018
1,205,516
243,292
12,601
3,619,307
5,781,734
13,284
513,329
2,099
426,200
2,185,000
2,244,787
830,531
2,305,222
9,569,319
25,484
5,066,541
17,797,097
193,041
588,614
1,275
460,95
1,816,000
2,023,911
Total Fund Equity 6,007,462 5,384°699 5,083,792
Total Liabilities and Fund Equity $ 11,941,961
11,166,433
Sources: Audited Financial Reports of the Town (2005 through 2007)
Table itself NOT audited.
22,880,889
A-1
Statement of Revenues, Expenditures and Changes in Fund Balance
General Fund Town Wide
Fiscal Year Ending December 31:
2003 2004 2005 2006 2007
Real Property Taxes $ 13,247,572 $ 13,962,268 $ 14,608,674 $ 14,872,736 $ 16,205,911
Other Real Property Tax Items 51,311 65,720 68,807 85,808 92,606
Non-Property Tax Items 401,035 415,071 415,071 616,670 683,873
Departmental Income 315,289 344,217 345,956 477,849 411,790
Intergovernmental Charges 202,917 296,050 252,558 3 i6,049 329,202
Use of Money & Property 201,702 254,142 489,796 684,166 764,912
Licenses & Permits 188,480 214,461 249,178 258,794 253,494
Fines & Forfeitures 107,084 107,3 I5 140,192 171,763 155,477
Sale of Property & Comp. for Loss 56,893 405,077 93,290 95,057 148,283
Miscellaneous Local Sources 133,346 128,027 432,269 146,260 185,945
State Aid 2,225,401 2,974,027 2,637,870 2,725,177 2,412,869
Federal Aid 146,574 160,337 174,348 228,491 145,568
17,277,604 19,326,712 19,908,009 20,678,820 21,789,930
Expenditures:
General Government Support
?ubtic Safety
Public Health
Transportation
Economic Assistance & Opportunity
Culture & Recreation
Home & Community Services
Employee Benefits
Debt Service Principal & Interest
3,751,469 4,395,571 4,641,568 5,177,745 5,234,683
6,033,207 6,254,365 7,177,145 7,371,280 7,81&643
32,988 33,288 33,288 32,988 35,238
398,358 401,866 446,877 452,050 550,906
833,501 931,566 901,139 949,740 1,064,905
317,769 304,071 354,768 384,983 345,540
228,578 341,764 315,273 530,270 417,654
2,617,783 4,868,116 5,857,963 5,811,868 6,172,279
1,007,318 2,104,202 1,560,055 1,313,234 787,775
Total Expenditures
15,220,971 19,634,809 21,288,076 22,024,158 22,425,623
Excess (Deficiency) of Revenues Over
Expenditures
2,056,633 (308,097)
(1,380,067) (1,345,338) (635,693)
2,642,859 2,253,944 2,738,349
(1,895,023) (1,531,369) (2,403,563)
747,836 722,575 334,786
Operating Transfers In
Operating Transfers Out
1,392,850 2,932,574
(1,910,781) (1,304,195)
Total Other Financing Sources (Uses)
(517,931) 1,628,379
Excess (Deficiency) of Revenues and Other
Sources Over Expenditures and Other Uses
1,538,702 1,320,282 (632,231) (622,763) (300,907)
3,780,709 5,319,411 6,639,693 6,007,462 5,384,699
Fund Balance Beginning of Year
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 thc To~vn (2003-2007)
fable 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 200~
$ 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 77,817 140,578 142,501
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
Expenditures:
Transportation 2,733,518
Employee Benefits 976,406
Debt Service 15,128
Total Expenditures 3,725,052
Excess (Deficiency) of Revenues Over
Expenditures 368,020
Operating Transfers In
Operating Transfers Out (60,000)
Total Other Financing Sources (Uses) (60,000)
Excess (Deficiency) of Revenues and Other
Sources Over Expenditures and Other Uses 308,020
Fund Balance Beginning of Year 594,064
Fund Balance End of Year $ 902,084 $
2,638,121 2,913,768 3,028,076 3,437,186~
415,102 500,343 515,106 510,185
22,219 178,371 283,652 17,00I
3,075,442 3,592,482 3,826,834 3,964,372
708,703 656,536 715,122 554,384
211
(690,390) (520,085) (452,648) (794,696)
(690,390) (520,085) (452,648)
__ (794,485)
18,313 136,451 262,474 (240,~1_0!~
902,084 920,397 1,056,848 1,319,322
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 31:
2003 2004 2005
Revenues:
Real Property Taxes $ 2,197,525 $ 2,506,945 $
Other Real Property Tax Items 874 3,105
Non-Property Tax Items I 17,449 336,139
Departmental income 2,339,227 2,517,584
Intergovernmental Charges 1,614 1,013
Use of Money & Property 18,147 21,365
Licenses & Permits 139,620 I99,849
Fines and Forfeitures 49,000
Sale of Property & Comp. for Loss 44,450
Miscellaneous Local Sources 230
State Aid I61,393
Federal Aid 1 l 1,299
2006 2007
2,381,335 $ 2,741,362 $ 2,831,897
2,516 4,489 4,581
213,786 229,346 234,091
2,504,880 2,275,935 2,147,502
1,013 1,809 905
64,092 95,272 94,361
165,965 163,780 169,338
76,069 109,137 135,662 216,437
5,025 153,591 6,652 13,283
72,651 75,374 127,278 93,135
166,368 224,136 41,163 210,175
5,180,828 5,906,113 5,895,825 5,822,748 6,015,705
Ex~penditures:
General Government Support 134,969 92,514 99,895 103,654 87,970
Public Safety 749,904 739,198 807,474 869, I54 948,31 I
Public Health 6,408 6,664 6,864 7,104 7,370
Home & Community Services 3,230,201 3,225,586 3,I02,639 3,363,781 3,173,114
Employee Benefits 874,049 371,038 444,858 470,377 468,989
Debt Service 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
67,735 1,382,310 762,375 186,088 799,155
Excess (Deficiency) of Revenues Over
Expenditures
Operating Transfers In
Transfers Out
(483,500) (1,081,441) (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
(415,765) 300,869 257,655 (243,057) (74,960)
Fund Balance Beginning of Year
1,261,339 845,574 1,146,444 1,446,849 (2) 1,203,792
Fund Balance End of Year
$ 845~574 $ 1~146,443 $ 1,4041099 $ 1,203,792 $ 1,128,832
(1) Includes the following funds: General Fund Part Town, Special Grant Fund, East-West Fire Protection Fund, Southold Wastewater
District, Fishers Island Sewer District and Solid Waste Management District.
(2) Difference due to Prior Year Accounting Adjustment
Sources: Audited Financial Reports of the Town (2003-2007)
Table itself NOT audited.
A-4
Fund
BUDGET SUMMARY
Fiscal Year Ending December 3 t, 2009
Appropriations Less: Less:
and Provisions Estimated Unexpended
for Other Uses Revenues Balance
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
Amount to be
Raised by
Tax
$ 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
$ 41,817,487 $ 14,869,420 $ 1,935,000 $ 25,013,067
Orient Road Improvement District 4,580
East-West Fire Protection District 597,863
Fishers lsland Ferry District 3,412,000
Solid Waste Management District 3,997,640
Southold Wastewater District 87,500
Fishers Island Sewer District 30,705
F.I. Refuse & Garbage District 549,800
Orient Mosquito District 70,000
Subtotal-Special Districts $ 8,750,088
Orient-East Marion Park District
Southold Park District
Cutchogue-New Suffolk Park Dist.
Mattituck Park District
Subtotal-Park Districts
Fishers Island Fire District
Orient Fire District
East Marion Fire District
Southold Fire District
Cutchogue Fire District
Mattituck Fire District
Subtotal-Fire Districts
Total-All Districts
0 20
3,000 5,700
2,822,000 0
2,490,100 0
8,000 75,000
30,705 0
50,000 100,000
0 0
$ 5,403,805 $ 180,720
4,560
589,163
590,000
1,507,540
4,500
399
70,000
$ 3,165,563
35,583 0 0 35,583
315,000 0 0 315,000
145,000 0 0 145,000
608,928 31,750 100,000 477,178
Grand Total $
1,104,511
359,700
525,240
541,716
1,738,238
1,150,350
1,881,871
$ 31,750
3,300
60,724
2,000
44,200
20,000
0
$ 130,224
5,565,779
$ 20,435,199
$ 100,000
0
0
I8,750
0
246,750
0
265,500
546,220
2,481,220
Source: Adopted Budget of the Town.
6,197,115
16,051,714
57,869~201
$ 972,761
356,400
464,516
520,966
1,694,038
883,600
$ 5~01,~
9,939,715
$ 34,952,782
A-5
BUDGET SUMMARY
Appropriations
and Provisions
Fund for Other Uses
General $ 24,413,069
General-Outside Village 2,246,677
Highway Fund 5,198,627
Community Development 136,000
Risk Retention Fund 765,000
Community Preservation Fund 5,200,000
Employees Health Plan 2,892,500
Total-Town
$ 40,851,873__
Orient Road Improvement District 4,500
East-West Fire Protection District 552,863
Fishers Island Ferry District 3,220,775
Solid Waste Management District 4,224,695
Southold Wastewater District 102,265
~shers Island Sewer District 30,950
I. Refuse & Garbage District 563,800
Orient Mosquito District 86,900
Subtotal-Special Districts $ 8,786,748
Orient-East Marion Park District 34,780
Southold Park District 315,000
Cutchogue-New Suffolk Park Dist. 145,000
MattituCk Park District 560,229
Subtotal-Park Districts $ 1,055,009
Fishers Island Fire District
Orient Fire District
East Marion Fire District
Southold Fire District
Cutchogue Fire District
ub ttituck Fire District
total-Fire Districts
359,700
483,940
536,380
1,631,025
1,412,000
1,978,770
$ 6,401,815
Total-All Districts
16,243,572
Grand Total
$ ~57~095,445
Source: Adopted Budget of the Town.
Fiscal Year
Less:
Estimated
Revenues
$ 5,205,781
1,119,700
396,032
136,000
765,000
5,200,000
2,692,500
$ 15,515,013
0
5,000
2,630,775
2,640,350
9,020
30,700
0
0
$ 5~,3 ! 5,845~
0
0
0
29,000
$ 29,000
3,300
45,272
13,200
33,000
20,000
0
$ 114,772
5,459,617
$ 20,974,630
Ending December 31, 2008
Less:
Unexpended
Balance
$ 1,816,000
317,000
491,000
0
0
0
200,000
$ 2,824,000
0
6,400
0
77,400
90,000
250
0
0
$ 17~050
0
0
0
50,000
$ 50,000
0
0
0
0
0
0
Amount to be
Raised by
Tax
$ 17,391,288
809,977
4,311,595
0
0
0
0
$ 22,512,860
541,463
590,000
1,506,945
3,245
0
563,800
86,900
$ 3,292,353
34,780
315,000
145,000
481,229
$ 976,009
356,400
438,668
523,180
1,598,025
1,392,000
1,978,770
$ 0 $ 6,287,043
224,050
$ 3,048,050
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.
I FINANCIAL
SECTIoN I
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 Act v t es 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 ....................................................... t 6-17
Fiduciary Fund Financial Statements
Statement of Fiduciar~ 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
Discretely Presented Component Units:
Combining Statement of Net Assets ................................................................
Combining Statement of Activities ......................................................................
39
40
41
42
FINANCIAL
SECTION
25 Suffolk Court, Hauppauge, New York 11788
631.434.9500 · Fax 631.434.9518
INDEPENDENT AUDITORS'REPORT
Honorable Supervisor and Town Board
Town of Southold
Southol~l, 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 fairly, 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
America.
The Management's Discussion and Analysis and the budgetary information are not a required part 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.
ALBRECHT, VIOOIANO, ZURECK ~. CONPANYI ~.C-
-1-
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 Southold, New York, and, in our opinion, is fairly presented in all material 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 sotely as a trustee agent for the benefit of those outside of the government.
Report n_~ 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-financing 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; cutture 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 Significant Funrl~
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 bend 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 fuods, which focus on how money flows into and out
oi those funds and the balances left at year-end that are available for spending. These funds are reported
usirq an accounting method called modified accrual accounting, which measures cash and all other financial
asset~ 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
informatior, 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 F,duc~ary 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 WHOt F
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 $ 94,001,201
-4-
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2007
FINANCIAL ANALYSIS OF THE TOWN AS A WHOL F (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
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 $
2007 2006
$ 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
629,444 713,164
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 SOUTFIOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2007
FINANCIAL ANALYSIS OF THE TOWN AS A WHOI F (continued)
Total 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
of Services
$ 7,020,895
12,358,296
46,146
6,98O, O32
1,506,488
629,444
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.
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2007
FINANCIAL ANALYSIS OF THE TOWN AS A WHOI F (continued)
$14,o00,ooo ]:*--':--;:?-----"7---' :-:Expenses and Program .......... Revenues:':'-':' '-': ...............................................
~ Governmental Activities '1
$12,000,000 d
i ~ Expenses
I ~1 Program Revenues
$8,000.000
$6,000,000
$4,000,000
$2,000,000
2% 12%
Other ~~
23%
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 WHOLI~ (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.
REVENUES
Increase %
2007 2006 (Decrease) Change
Real property taxes $ 23,065,503
Other real properly tax items 109,909
Non-property tax items 917,964
Depadmental income 2,559,292
Intergovernmental charges 6,401,543
Use of money and property 1,650,001
Licenses and permits 433,194
Fines and forfeitures 155,477
Sale of property and compensation for loss 393,933
Miscellaneous local sources 487,582
State aid 3,696,346
Federal aid 1,280,709
Total Governmental Fund Revenues
EXPENDITURES
General government support $ 5,322,653
Public safety 8,764,954
Public health 42,608
Transpor[ation 3,988,092
Economic assistance and opportunity 1,064,905
Home and community services 3,518,654
Culture and recreation 417,654
Employee benefits 7,151,453
Capital 12,436,627
Debt service principal and interest 1,622,942
Total Governmental Fund Expenditures
$ 21,709,041 $ 1,356,462 5.9%
102,986 6,923 6.3%
846,016 71,948 7.8%
2,753,784 (194,492) -7.6%
6,142,177 259,366 4.1%
1,376,729 273,272 16_6%
432,058 1,136 0.3%
171,763 (16,286) -10.5%
238,240 155,693 39.5%
303,912 183,670 37.7%
7,108,866 (3,412,520) -92.3%
595,604 685,105 53.5%
$ 41,151,453 $ 41,781,176 $ (629,723)-1.5%
$ 5,281,399 $ 41,254
8,240,434 524,520
40,092 2,516
3,480,126 507,966
949,740 115,165
3,748,764 (230,110
530,270 (112,616
6,797,351 354,102
13,324,188 (887,561
2,504,007 (881,065
0.8%
6.0%
5.9%
12.7%
10.8%
~8.5%
-27.0%
5.0%
-7.1%
-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 bel~veen 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 $ 68,929,202
Construction in progress 1,067,738
Buildings 8,316,323
Improvements other than buildings 13,624,650
Machinery and equipment 10,197,793
Infrastructure 71,461,368
Total capital assets 173,597,074
Less accumulated depreciation 63,868,653
Primary government - Total net capital assets $ 109,728,421
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
2O07
2,193,353
404,367
3,500,910
17,028,469
3,504,995
2,172,080
28,804,174
6,702,685
$ 22,101,489
2O06
$ 58,341,517
220,114
8,307,223
13,618,159
9,916,143
70,694,655
161,097,811
60,540,499
$ 100,557,312
2,213,759
12,947,081
3,566,885
3,220,732
3,320,899
2,145,280
27,414,636
6,074,572
$ 21,340,064
TOWN OF SOUTHOL-D
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 roils 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
varied 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 report or need additional financial information, contact the Town of Southold, Office of the
Town Comptroller, Southold, New York.
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
Depreciable 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 postclosure care costs
Total Non-Current Liabilities
Total Liabilities
NET ASSETS
Investment in capital assets, net of related debt
Restricted:
Land acquisition
Debt service
Unrestricted
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
572,1.13
28,413,510 2,555,000
52,727,539 6,766,953
83,294,421 17,132,809
13,909,980
79,339 2,756
3,064,811 2,052,130
$100,348,551 $ 19,187,695
........................ See notes to the-financial statements: .....................
-12-
TOWN OF soLrTHOLD
GOVERNMENT-WIDE FINANCIAL STATEMENT
STATr:MENT OF ACTIVITIES
Year endsd December 31, 2007
Opera~g Capltal
Net Exp~nses and
Charge ~n Ne[ Asse~
PrJma~7 Compo~en[
Government UniL~
7.020.895 $ 210.585 $ 111.765 ' $ 6.698.545
46.146 t0.316 35.830
6.980.037. 39.074 20.000 $ 296.263 6.624.895
1.506.488 184.273 254.537 1,0~7,678
629,444 185,682
443,762
Total Primary Govemm en[ ..$ 34.768.807 $
COMPONENT UNITS
2,t21.553 $ 28.543.772
$ 193.250
86.911
2.819.880 $ 2.546.987 $ 1.220.744
893.070
649,453 51,40O
183,028
Tolal Com pon~n[ Un,Is $ 4.825,599 $ 2.598.387 $ --
Reel proper~ taxes
$ 23,065.503 $
109.909
6,989.400
1.602.349
2.293,296
930.666
6.347.350
$ 193,250
86,911
(g47,851)
893,070
1~3,028
Ne[ Assets at End of year $ 100,348,551
2.142.757
90.658
96.097
616,139
65,498
2,007,360
17,180.305
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
$ 22,880,889 $ 2,505,868 $ 17,496,985 $ 2,213,745 $ 45,097,487
$ 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
11275 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 1,428,832 20,179,496
$ 22,880,889 $ 2,505,868 $ 17,496,985 $ 2,213,745 $ 45,097,487
............................. See notes-to tbe-finandal Statem-ents.~ ..............................
-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 tong-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 of Governmental Activities
$ 69,996,940
103,600,134
(63,868,653)
$ (~2,365,000)
(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-
TOWN OF SOUTHOLD
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the year ended December 31, 2007
MAJOR GOVERNMENTAL FUNDS Non-Major
Capital Governmental
General Highway Projects Funds Totals
REVENUES
Real Property Taxes $16,205,911 $4,027,695 $ 2,831,897 $ 23,065,503
Other Real Property Tax Items 92,606 12,722 4,581 109,909
Non-Property Tax Items 683,873 234,091 917,964
Departmental Income 411,790 2,147,502 2,559,292
Intergovernmental Charges 329,202 $ 6,071,436 905 6,401,543
Use of Money and Property 764,912 142,501 648,227 94,361 1,650,001
Licenses and Permits 253,494 10,362 169,338 433,194
Fines and Forfeitures 155,477 155,477
Sale of Property and Compensation for Loss 148,283 29,213 216,437 393,933
Miscellaneous Local Sources 185,945 288,354 13,283 487,582
State Aid 2,412,869 296,263 894,079 93,135 3,696,;
Federal Aid 145,568 924,966 2t 0,175 1,280,;
Total Revenues 21,789,930 4,518,756 8,827,062 6,015,705 41,151,~
EXPENDITURES
Current:
General Government Support 5,234,683 87.970 5,322.653
Public Safety 7,816,643 948,311 8,764,954
Public Health 35,238 7,370 42.608
Transportation 550,906 3,437,t86 3,988,092
Economic Assistance and Opportunity 1.064,905 1,064,905
Home and Community Services 345,540 3.173,tl 4 3,518,654
Culture and Recreation 417,654 417,654
Employee Benefits 6,172,279 510,185 468.989 7.151,453
Capital Outlay 12,436,627
Debt Service:
Principal 236,058 779,098
Interest 294,738 843.844
Total Expenditures 5,216.550 44,330,542
Excess {Deficiency) of Revenues Over
Expenditures
Other Financing Sources (Uses)
Debt Proceeds
Transfers in
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances at Beginning of Year
Fund Balances at End of Year
12,436,627
543,040
244,735 17,001 287,370
22,425,623 3,964,372 12,723,997
(635,693) 554,384 (3,896,935)
14,650,000
2,738,349 211 1,333,814
(2,403,563) (794,696)
334,786 (794,485) 15,983,814
(240,101)
1,319,322
799,155
14,650,000
4,072,374
(874,115) (4,072,374)
(874,115) 14,650,000
(300,907) ~ 12,086,879 (74,960) 11,470,911
5,384,699 800,772 1,203,792 8,708,585
$ 5,083,792 $1,079.22~1 $ 12,887.65~1 $1,t28,83~2 $ 20.179.496
Seemotes to th-e-fin'ancial-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 long-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
$ 6,347,35O
Change in Net Assets of Governmental Activities
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 $ 5,753,33~2
See notes to financial statements.
-18-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Town of Southold (the "Town"), which was established in 1640, is governed by Town Law and other
general laws of the State of New York and various 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 setting body for
establishing governmental accounting and financial reporting principles.
The more significant of the government's accounting policies are described below.
1. REPORTING ENTITY
The financial reporting entity consists of: (a) the primary government, which is the Town of
Southoid; (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 Southold 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 Southold'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 districts 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.
2. 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 whole, 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 accrual, economic resource basis,
which recognizes all tong-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 reports both the gross and net cost of each of the
Town's functional categories (public safety, transportation, 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, intergovernmental 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
model. 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-balanciog accounts that comprise its assets, liabilities, fund balances, revenues, and
expendilures, which are segregated for the purpose of carrying on specific activities or attaining
certain objectives in accordance with special regulations, restrictions or limitations. The various
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 fudher 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
SUMMARY OF S~GNIFICANT 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 - Fiduciary 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
Southold 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)
3. 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 reported 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, expenses, gains, losses, assets,
and liabilities resulting from exchange and exchange-like transactions are recognized when the
exchange takes place.
In 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 period or soon enough thereafter to
pay liabilities of the current pedod. 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 ordem, 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 considem 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 ~:lassified as restricted
assets because their use is restricted by contractual agreements and regulations.
- 22 -
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (contiaued)
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 10-40 years
Improvements and other 20 years
Machinery and equipment 5-10 years
Infrastructure 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 criteria 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
a a labia 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 bonds, 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 1 for beth school and
general taxes. The Town's assessment roils 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-
Ao
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 coltects 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 SOUTHOLD
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 "nvested 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. Portions 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 O. ctober 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 budget.
c) The Town Board must approve all modifications of the budget. However, the Supervisor
is authorized to transfer cedain 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 report.
~ 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:
Fund
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
FUND DEFICITS
Total for Subsequent Fund Balance
Fund Balance Year's Unreserved
Unreserved Budget Undesignated
$ 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
The capital 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
CASH AND INVESTMENTS
Cash consists of funds deposited in demand accounts, time deposit accounts, and certificates 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 repumhase
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)
1. 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
Collateralized with securities held by the pledging financial institution, or
· Co~lateralized 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
Southold Wastewater District
Fishem 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
Interfund receivable and payable balances for the primary 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
- 27 -
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
DETAILED NOTES ON ALL FUNDS (continued)
3. CAPITAL ASSETS
Primary government
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 12/31/07
$ 58,341,517 $ I0,587,685 $' 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 $ 7,32613,624,650
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
$ 60,540,499 $ 4,005,790 $ 677,636 63,868,653
39,731,481
$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)
4o
Discretely presented component unils
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
INDEBTEDNESS
SHORT TERM DEBT
Balance Balance
1/1/07 Additions Deletions 12/31/07
$ 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
3,566,885 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 841500 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
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 odginal
issue date. The notes or renewal thereof may not extend more than two years beyond the original
date of issue unless a portion is redeemed within two years and within each 12 month period
thereafter. Liabilities for BANs are generally 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 fotlows:
Description Amount
Various Purposes $ 3,560,000
Various Purposes 699,000
Fishers Island Sewer 125,000
New London Wharf 1,500,000
Fishers Island Garbage 360,000
Total ~
- 29 -
Interest
Rate
3.95%
3.75%
3.35%
3.70%
3.76%
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
111107 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 ~ $ 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 liabililies due Non-current
t/1/07 Increases Reductions 12/31/07 within one year liabilities
Primary Government:
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:
$14,650,000
495,736
$ 779,098 $ 22,365,000 $ 1,495,000 $ 20,870,000
48,804 -0- -0-
6,971,397 6,971,397
10,550 582.773 10,660 572,113
General obligation bonds 2,855,000 200,000 2,655,000 200,000 2,455,000
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 full 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 primary government and the
componentunits are as follows:
Year Endinq
2008
2009
2010
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026-2030
Principal Interest
1,695,000 $ 950 557
1,750,000 888643
1,575,000 827440
1,600,000 768 387
1,540,000 709 850
1,425,000 654 789
1,440,000 600 927
1,435,000 545,816
6,085,000 1,948,783
3,725,000 973,28t
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 dse 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 prior years, the Town defeased certain bonds by placing 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 dc:fi'eased 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 Southcid 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 Po cy
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 fifteen of the NYSRSSL, who contribute 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 certify
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 actuadally required amounts and also include additional contributions to fund various
early retirement incentives made available to the Town employees. The credits and miscellaneous
adjustments represent modification made by the ERS for pdor year's contributions.
The required contributions, for the Primary government, for the current year and two preceding
years were:
ERS PFRS
2007 $ 980,628 $ 96?',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 padicipation in the Empire Plan at any time without liability for its respective share of
any previously incurred loss. 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 factors; 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 pdmary 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 poticies 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 dder 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 $2,946,438.
- 32-
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 settled 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:
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
Unpaid Claims as of December 31,
General
Medical Liability
2007 2006 2007 2006
$ 161,976 $ 200,131 $ 906 $ 1,811
2,524,953 2,171,127 6,857 3,600
48,556 2,011 309 (905)
2,573,509 2,173,138 7,166 2,695
2,287,641 2,211,293 6,857 3,600
current year $ 447.844 $ 161.976 $ 1.215 $ 906
During the year ended December 31, 2007 charges to the operating funds for the self-insurance programs
$ 1,035,189
193,550
452,648
183,399
$ 1,864,786
389,158
$ 2~253,9.44
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
- 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 ctosure. 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 thidy 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
inflafion or deflation, changes in technology, or changes in regulations or applicable laws.
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:
2008 $ 189,393
2009 180,047
2010 105,458
2011 77,125
2012 andthereaffer 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:
Due from Capital Assets Other
Current Primal' Net of Current Long-Term
Assets Government Depreciation Liabilities LiabiJities
Net
Assets
Fishers Island Ferry District $ 1,621.229 $ 205,649 $ 16,464,366 $ 3,285,079 $ 2,500,000 $ 12,506,165
Fishers Island Refuse and Garbage 1,064,451 163,675 3,137,414 547,319 3,818,221
Cutchogue-New Suffolk Park Distdct 128,029 42,095 122.182 42,095 250,211
Soul. hold Park District 86,189 91,450 668,835 91,450 755,024
Orient-East Marion Park District 3,536 10,095 432,985 21,510 425,106
Mat6tuck Park District 262,824 139,704 1,253,381 199,270 55,000 1,401,639
Orient Mosquito District 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
- 34 -
TOWN OF $OUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
CONDENSED FINANCIAL STATEMENTS FOR THE DISCRETELY PRESENTED
COMPONENT UNITS (continued)
Condensed Statement of Activities:
Program General Revenue Net Assets
Property
Expenses Revenue Net Expense Tax Other Change 1/1/07 12/31/07
$ 3,187.121 $ 2,546,987 $ 640.134 $ 590,000 $ 1,278,382 $ (1,228,248) $11,277,917 $12,506,165
654,016 51,400 602,616 512.300 716.644 (626,328) 3,191,893 3,818.221
Fishers Island Fern/Distdct
Fishers Island Refuse
and Garbage
Cutchogue-New Suffolk Park
Distdct 132,084
Southoid Park District 339,999
Orient*East Marion Park District 32,993
Mattituck Park Distdct 392,466
Orient Mosquito Distdct 56,911
$ 4,825,592
132.084 145.000 5,446 (18,362} 231.849 250711
339,999 315,000 41.854 (16.855) 738,169 755,024
32,993 30,695 50 2,248 427,354 425,106
392,468 467,527 47,243 (122,302) 1.279,337 ,401 639
86,911 82,235 2,219 2,457 33,786 31,329
$ 2,598,387 $ 2,227,205 $ 2,142,757 $ 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 or sales or
improved land worth $250,000 or 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
Odginal Final
Budget Budget
Actual
REVENUES
Real Property Taxes $16,205,911 $16,205,911 $16,205,911
Other Real Properly Tax Items 80,000 80,000 92,606
Non-Property Tax Items 616,000 616,000 683,873
Oepadmental Income 473,600 591,100 411,790
Intergovernmental Charges 421,244 347,219 329,202
Use of Money and Property 555,000 564,000 764,912
Licenses and Permits 234,900 234,900 253,494
Fines and Forfeitures 127,000 127,000 155,477
Sale of Properly and Compensation for Loss 7,550 58,208 148,283
Miscellaneous Local Sources 92,554 104,819 185,945
State Aid 2,332,897 2,422,952 2,412,869
Federal Aid 181,025 145,568
Total Revenues
21,146,656 21,533,134 21,789,930
EXPENDITURES
General Government Support 6,480,095 6,490,347 5,234,683
Public Safety 7,704,283 7,913,905 7,816.643
Public Health 33,300 35,250 35,238
Transportation 526,410 581,526 550,906
Economic Assistance and Opportunity 1,091,260 1,090,225 1,064,905
Culture and Recreation 373,870 373,870 345,540
Home and Community Services 406,556 481,326 417,654
Employee Benefits 6,190,823 6,329,564 6,172,279
Debt Service - PdncipaJ and Interest 1,430,540 1,193,543 787,775
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Variance with
Final Budget
Encumbrances Positive/(Negative)
12,606
67,873
(179,310)
(18,017)
200,912
18,594
28,477
90,075
81,126
(10,083)
(35,457)
Other Financing Sources (Uses)
Transfers In
Transfers Out
Total Other Financing Soumes (Uses)
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
256,796
$ 109,889
83,152
1,145,775
14,110
12
30,620
25,320
28,330
63,672
157,285
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
3,296,446 3,336,895 2,738,349
(2,390,965) (2,596,808). (2,403,563)
905,481 740,087 334,786
(598,546)
193,245
(405,301)
$ (2,185,000) $ (2,216,335~ (300,907)
5,384,699
$ 5,083,792
$ (193,041) $ 1,722,387
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
REVENUES
Variance with
Original Final Final Budget
Budget Budget Actual Positive/(Negative)
Real Property Taxes $ 4,045,195
Other Real Property Tax Items 11,100
Use of Money and Property 125,000
Licenses and Permits 7,000
Sale of Property and Compensation
for Loss
State Aid
Total Revenues
$ 4,045,195 $ 4,027,695 $ (17,500)
11,100 12,722 1,622
125,000 142,501 17,501
7,000 1 O, 362 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
Employee Benefits 548,150
Debt Service - Principal and Interest 247,600
Total Expenditures
Excess of Revenues
Over Expenditures
Other Financing Sources (Uses)
Operating Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balance at Beginning of Year
Fund Balance at End of Year
3,697,181 3,437,186 259,995
545,450 510,185 35,265
250,300 17,001 233,299
4,347,130 4,492,931 3,964,372 528,559
104,700 (8,373) 554,384 562,757
211 211
(591,200) (595,952) (794,696) (198,744)
(591,200) (595,952) (794,485) (198,533)
$ (486,500_.)$ (604,325) (240,101) $ 364,224
1,319,322
$ 1,079,221
See notes t° the financial statements.
-38-
OTHER SUPPLEMENTARY
INFORMATION
TOWN OF $OUTNOLO
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
December 3;f, 2007
ASSETS
Cash and investments
Accounts receNable
Due from other funds
Due from other governments
prepaids
LIABilITIES AND FUND BALANCE
LIABILITIES
Aocounts payable
Due to other funds
Deferred revenue
Total Assets
Total Liabilities
FUND BALANCE
Fund balance - reserved:
Encumbrances
Prepalds
Fund balance - unreserved:
Designated - Ensuing Year's Budget
Undesignated
Total Fu~d Balance
Total Liabilities and Fund Balance
General Fund
Part Town
$ 621.398
61,567
267,093
23,315
$ 973,373--
East-West Fire Southold Fishers Solid Waste
Special Protection Wastewater Island Sewer Management
Grant District Oistdct District Dist~ct
Totals
$ 32,854 $ 238,754 $ 39,849 $ 134,006 $1,066,861
1,144 90,458 153,169
157,192 1,051 470 477,127 902,933
$ 42,236 42.236
25,231 48,546
$ 42.236 $ 190,046 $ 239,805 $ 41,463 $ 726,822 $.~2,213,745
$ 15,272 $ 42,236 $ 12,656
235,141 157.192
250,413 42,236 ~69.848
23,315
317,000
382,645
6,400
13,798
$ 2,882
2,000
$ 941
· 941 4,882
$ 149.126
29,985
437,482
616,593
$ 222,172
31,985
830,756
1,084,913
722,960 20,198
$ 973,373 $ 42,23_._.___~6 $ 190,04~6
25,770
213,094 36,581 110,229
238,864 36,581 110,229
$ 239,805 $ 41,463 $ 726.822
25,770
23,315
323,400
756,347
1,128,832
$ 2,213,745
-39-
TOWN OF SOIJTHOLD
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS
For the year ended December 31, 2007
REVENUES
Real Properly Taxes
Other Real Proper~y Tax Items
Non-Property Tax Items
Depadmental income
Intergovemmestal Charges
Use of Money and Property
Licenses and Permits
Sale of Property and Compensation for Loss
Miscellaneous Local Sources
State Aid
Federal Aid
East-West Fire SOuthold Fishers Solid Waste
General Fund Special Protection Wastewater Island Sewer Management
Part Town Grant ...... Distdct OJstdct O[stdct District
407,539 $ 499,000 $ 18,296
t ,282 679 25
234,091
669,746 20,997
44,654 6,055 11,721
5,150
2,164
93.t35
Total Revenues 1,457,761
EXPENDITURES
General Government Support 87,970
Public Safety 443,127
Public Health · 7,370
Home and Community Services 656,988
Employee Benelits 220,697
Debt service:
Principal
Interest
Total Expenditures 1.416,152
Excess (Deficiency) of Revenues
Over Expenditures 41,609
Other Financing Uses;
Transfers out (2261842)
Total Other Financing Uses (226,842)
210,175
210,175 505,734 51,039
215,175
505,184
215,175 505,I84
(5.000) 650
Totals
$ 1,907,062 $ 2,831.897
$ 2 2.593 4,581
234.091
9,929 1,446,830 2,147,502
905 905
1,908 30,023 94,361
164,188 169.338
214,273 216,437
13,283 13,283
93,135
210,175
__!~,839 3,779,157 6,015,705
87,970
948,311
7,370
33,639 16,206 2,251,106 3,173,114
248,292 468,989
1,960 234,098 236,058
355 294,383 294,738
35,954 16,206 .. 3,027,879 5,216.550
15,085 (4,367) 751,278 799,155
.... (647.273) (874,115)
(647.273) : (874,115~
Net Change in Fund Balance (185,233) (5.000) 550 15,085 (4.367)
Fund Balances at Beginning of Year 908,193. 5,000 19,648_ 223.779 .... 40,948
Fund Balances at End of Year $ 722,960 $ -0- $ 20,198 $ 238,864 $ 36,581
-40-
104,005 (74.960)
6,224 1,203,792
$ 110,229 _$ 1.128,832
TOWN OF SOLrTHOLD
DISCRETELy PRESENTED COMPONENT UNITS
COMBINING STATEMENT OF NET ASSETS
Decembe~ 31, 2007
F"~hem
ASSETS
(Unaudiled) . (Unaudited) (Unaud~[ed) . {Unaudited) ..(Unaudited) (t~naudRedI
432,382 $ 128,029 $ 86,189 $ 3,536
14,104
163.675 42,095 91.450 10.095
588.774
1~228.126 170,124 177t639 13,631
Totals
$ 262.729 $ 9.003 $ 1,522,50~
95 78,621
139.704 25,230 677,898
517,262 101,198 568,801 432,985
2~6Z0~152 20~984 100,034
3~137.414 122~182 668~835 432~9~5
4,365,540 202,306 846,474 '446,616
935,757 2,597.720
317,624 · :~2.323 19,503~769
1,253,381 .. 22,326 .. 22,101~48.q
42,095 gl,450
547,319 42.095 91,450 21,510
547,319
2,831,893
986,328
$ 250,211
8,742 1,390,469
824 64,461
1.860,000
139,704 25,230 647,023
........ 254,270 25,230 - 6,766,953
738,159 1,148,381
17,132,809
2,756
16~865 425,106 253,258 --. 31~329 2,052~130
$ 755t02~ $ 425.106 $ 1.401.639 $ 31 329 $ 19,187 695
DISCRETELY PRESENTED COMPONENT UNITS
TOWN OF SOUTHOLD
DISCRETELY PRESENTED COMPONENT UNITE
COMBINING STATEMENT OF ACTIVITIES
Year ended December 31, 2007
REVENUES
Program revenues
Real property taxes
Other rea[ property tax items
Non-property tax items
Interest earnings
Total Revenues
EXPENSES
Genem~ government support
Public health
Transpe~ation
Culture and recreation ~
Home and oornmunity services
Interest on debt
Total Expenses
Changes in Net Assets
Net Assets at Beginning of Year
Net Assets at End of Year
Fishers
is{and Fen, y
Dist~tc~
$ 2,546,987
590,000
802
22,479
27,368
1,220.744
5.992
4~415,369
193.250
2,819.880
16,405
157,586
3,187,121
1,228,248
11,277,917
$12,506.165
Fishers Island Cutchogue- Southold Orient-East Mattituck Orient
Refuse and New Suffolk Park Madon Park Park Mosquito
Garbage ~ Pa~ District Ois~ct District DistH~t District
.. ~Unaudited) (Unaudited) (Unaudited} (Unaudited) (Unaudited) (Unaudited)
Totals
51,400 $ 2,598,387
512.300 $ 145,000 $ 315.000 $ 30,695 $ 467.527 $ 82,235 2,142,757
697 197 428 42 636 2,802
90,558 90,558
36,615 5,249 3,238 8 25,536 1,972 96,097
588,774 616.139
1,220,744
38,188 20~071 247 65,498
1~280,344 150~448 356~854 .... 30~745 514,770 84,454 6,832,982
193,250
86,911 86,911
2,819,880
132,084 339,999 32,993 387,994 893,070
633,048 649,453
20.968 4,474 183,028
654,016 132.084 339,999 321993 3921468 86,911 4,825,592
626,328 18,362 16.855 (2,248) 122,302 · (2.457) 2,007,390
3,191,893 231,849 738,169 427,354 1.279,337 33.786 17,180,305
$ 3.818,221 $ 250,211 $ 755.024 $ 425,106 $ 1,401,63~ $ 31,329 $19,187695
-42-
ELIZABETH A. NEVILLE, RMC, CMC
TOWN CLERK
REGISTRAR OF VITAL STATISTICS
MARRIAGE OFFICER
RECORDS MANAGEMENT OFFICER
FREEDOM OF INFORMATION OFFICER
Town Hall, 53095 Main Road
P.O. Box 1179
Southold, New York 11971
Fax (631) 765-6145
Telephone (631) 765-1800
southoldtown.northfork.net
OFFICE OF THE TOWN CLERK
TOWN OF SOUTHOLD
March 4, 2009
Town of Southold, New York
Refunding Serial Bonds-2009
(Our File Designation: (2615/
William J. Jackson, Esq.
Hawkins Delafield & Wood LLP
One Chase Manhattan Plaza
New York, NY 10005
Dear Mr. Jackson:
Enclosed find copies of affidavits of publication for both the Suffolk times and Newsday and the
Estoppel Certificate when they are received.
Please let me know if there is anything else you need for your files.
Very truly yoursr~
Lynda M Rudder
Deputy Town Clerk
Encs
CC: Town Attorney
Town Comptroller
ESTOPPEL CERTIFICATE
I, ELIZABETH A. NEVILLE, Town Clerk of the Town of Southold, in
the County of Suffolk, New York (the "Town"), HEREBY CERTIFY as follows:
That a resolution of the Town Board of said Town entitled:
"REFUNDING BOND RESOLUTION OF THE TOWN
OF SOUTHOLD, NEW YORK, ADOPTED FEBRUARY
24, 2009, AUTHORIZING THE REFUNDING OF
CERTAIN OUTSTANDING SERIAL BONDS OF SAID
TOWN, STATING THE PLAN OF REFUNDING,
APPROPRIATING AN AMOUNT NOT TO EXCEED
$3,000,000 FOR SUCH PURPOSE, AUTHORIZING THE
ISSUANCE OF NOT TO EXCEED $3,000,000
REFUNDING BONDS TO FINANCE SAID
APPROPRIATION, AND MAKING CERTAIN OTHER
DETERMINATIONS RELATIVE THERETO,"
was adopted on February 24, 2009, and such resolution contained an estoppel clause as
permitted by Section 80.00 of the Local Finance Law and a notice setting forth
substantially the statements referred to in Section 81.00 of the Local Finance Law,
together with a summary of such resolution, was duly published as referred to in said
Section 81.00 of the Local Finance Law.
That to the best of my knowledge, no action, suit or proceeding contesting
the validity of the obligations authorized by such resolution was commenced within
twenty days from the date of publication of such notice.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
corporate seal of said Town this (o'~t4 day of
~ ,2009.
I
Elizabeth A. Neville, Town Clerk
Town of Southold
NEWSDAY
AFFIDAVIT OF PUBLICATION
TOWN OF SOUTHOLD
PO BOX 1179
SOUTHOLD NY
11971-0959
STATE OF NEW YORK)
:SS.:
COUNTY OF SUFFOLK)
R. Lopes
Legal
16074636
of Newsday, Inc., Suffolk County, N.Y., being duly sworn, says that such person
is, and at the time of publication of the annexed Notice wasa duly authorized
custodian of records of Newsday, Inc., the publisher of NEWSDAY, a newspaper
published in the County of Suffolk, County of Nassau, County of Queens, and
elsewhere in the State of New York and other places, and that the Notice of
which the annexed is a true copy, was published in the following editions/
counties of said newspaper on the following dates:
THURSDAY MARCH 12 2009 : Suffolk
2009
Sworn To Before Me This
12 day of March
Notary Public
Commission Expires 08/07/2010
Qualified in Surfak County
Legal Notice 16074636
LEGAL NOT~CE
NEWSDAY PROOF
Customer. TOWN OF SOUTHOLD Contact: LYNDA M RUDDER Phone: 6317651800
Ad Number:. 16074636 Start Date:O3/t2/2009 End Date: 03/12/2009 Times: 1
Price: $294.74 Size: 1 x 88 Section: CL Class: 11100
Printed By: LO05 Date: 03/04/2009
Signature of Approval: Date:
Zones:
Southold Town Board - Letter
Board Meeting of February 24, 2009
RESOLUTION 2009-184
ADOPTED
Item # 4.29
DOC ID: 4799
THIS IS TO CERTIFY THAT THE FOLLOVglNG RESOLUTION NO. 2009-184 WAS
ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON
FEBRUARY 24, 2009:
REFUNDING BOND RESOLUTION OF THE TOWN OF
SOUTHOLD, NEW YORK, ADOPTED FEBRUARY 24, 2009,
AUTHORIZING THE REFUNDING OF CERTAIN
OUTSTANDING SERIAL BONDS OF SAID TOWN,
STATING THE PLAN OF REFUNDING, APPROPRIATING
AN AMOUNT NOT TO EXCEED $3,000,000 FOR SUCH
PURPOSE, AUTHORIZING THE ISSUANCE OF NOT TO
EXCEED $3,000,000 REFUNDING BONDS TO FINANCE
SAID APPROPRIATION, AND MAKING CERTAIN OTHER
DETERMINATIONS RELATIVE THERETO.
Recitals
WHEREAS, the Town of Southold, in the County of Suffolk, New York (herein
called the "Town"), has heretofore issued on May 19, 1998 its $2,000,000 Agricultural Land
Preservation Serial Bonds-1998 (the "1998 Bonds"), which are currently outstanding in the
principal amount of $1,120,000 (the "Outstanding 1998 Bonds"), which shall mature on May 1
in each of the years and in the principal amounts and bear interest payable semiannually on May
1 and November 1 in each year to maturity, as follows:
Year of Principal Interest Rate
Maturity Amount
2009 $100,000 4.85%
2010 100,000 4.85
2011 110,000 4.85
2012 110,000 4.85
2013 110,000 4.85
2014 110,000 4-7/8
Generated February 27, 2009 Page 57
Southold Town Board - Letter Board Meeting of February 24, 2009
2015 120,000 4-7/8
2016 120,000 4-7/8
2017 $120,000 4-7/8%
,- 2018 120,000 4-7/8
WHEREAS, the 1998 Bonds maturing on or after May 1, 2009 are subject to
redemption prior to maturity, at the option of the Town, on May 1, 2008 and thereafter on any
date, in whole or in part, in inverse order or maturity or in equal proportionate amounts (selected
by lot within a maturity), at the following redemption prices, plus accrued interest to the date of
redemption:
Redemption Dates (all dates inclusive)
May 1, 2008 to April 30, 2009
May 1, 2009 to April 30, 2010
May 1, 2010 and thereafter
Redemption Prices (Percentages of
Principal Amount)
102%
101
100
WHEREAS, on May 18, 1999 the Town issued its $1,900,000 Open Space
Preservation Serial Bonds-1999 (the "1999 Bonds"), which are currently outstanding in the
principal amount of $1,160,000 (the "Outstanding 1999 Bonds". and together with the 1998
Outstanding Bonds, the "Outstanding Bonds"), which shall mature on May 1 in each of the years
and in the principal amounts and bear interest payable semiannually on May I and November I
in each year to maturity, as follows:
Year of Principal Interest Rate
Maturity Amount
2009 $ 90,000 4.70%
2010 90,000 4.70
2011 100,000 4.70
2012 100,000 4.70
2013 100,000 4.70
2014 110,000 4.70
2015 110,000 4.70
2016. 110,000 4.70
2017 110,000 4.70
2018 120,000 4.70
2019 120,000 4.70
WHEREAS, the 1999 Bonds maturing on or after May 1, 2010 are subject to
redemption prior to maturity, at the option of the Town, on May 1, 2009 ahd thereafter on any
date, in whole or in part, and if in part, in inverse order of maturity or in equal proportionate
amounts (selected by lot within a maturity), at the following redemption prices, plus accrued
Generated February 27, 2009 Page 58
Southold Town Board - Letter Board Meeting of February 24, 2009
interest to the date of redemption, as follows:
Redemption Dates (Both Dates Inclusive)
May 1, 2009 to April 30, 2010
May 1,2011 to April 30, 2011
May 1, 2012 and thereafter
Redemption Prices (Pementages of
Principal Amount)
102%
101
100
WHEREAS, Section 90.10 of the Local Finance Law, constituting Chapter 33-a
of the Consolidated Laws of the State of New York (herein called the "Law"), permits the Town
to refund all or a portion of the outstanding unredeemed maturities of the 1998 Bonds and the
1999 Bonds by the issuance of new bonds, the issuance of which will result in present value debt
service savings for the Town, and the Town Board has determined that it may be advantageous
to refund all or a portion of the Outstanding Bonds;
NOW, THEREFORE, be it
RESOLVED BY THE TOWN BOARD OF THE TOWN OF SOUTHOLD, NEW
YORK (by the favorable vote of at least two-thirds of all the members of said Town Board), AS
FOLLOWS:
Section 1. In this resolution, the following definitions apply, unless a different
meaning clearly appears from the context:
(a) "Bond To Be Refunded" or "Bonds To Be Refunded" means all or a portion of
the aggregate Outstanding Bonds, as shall be determined in accordance with
Section 8 hereof.
(b) "Escrow Contract" means the contract to be entered into by and botween the
Town and the Escrow Holder pursuant to Section 10 hereof.
(c) "Escrow Holder" means the bank or trust company designated as such
pursuant to Section 10 hereof.
(d) "Present Value Savings', means the dollar savings which result from the
issuance of the Refunding Bonds computed by discounting the principal and
interest payments on both the Refunding Bonds and the Bonds To Be
Refunded from the respective maturities thereof to the date of issue of the
Refunding Bonds at a rate equal to the effective interest cost of the Refunding
Generated February 27, 2009 Page 59
Southold Town Board - Letter Board Meeting of February 24, 2009
Bonds. The effective interest cost of the Refunding Bonds shall be that rate
which is arrived al by doubling the semi-annual interest rate (compounded
semi-annually) necessary to discount the debt service payments on the
Refunding Bonds from the maturity dates thereof to the date of issue of the
Refunding Bonds and to the agreed upon price including estimated accrued
interest.
(e) "Redemption Date" means May 1, 2008, or any date thereafter, with respect to
the 1998 Bonds and May 1,2009 with respect to the 1999 Bonds.
(0
"Refunding Bond" or "Refunding Bonds" means all or a portion of the
$3,000,000 Refunding Serial Bonds-2009 of the Town of Southold, authorized
to be issued pursuant to Section 2 hereofi
(g)
"Refunding Bond Amount Limitation" means an mount of Refunding Bonds
which does not exceed the pnncipal amount of Bonds To Be Refunded plus
the aggregate amount of unmatured interest payable on such Bonds To Be
Refunded, to and including the applicable Redemption Date, plus redemption
premiums payable on such Bonds To Be Refunded as of such Redemption
Date, as hereinabove referred to in the Recitals hereof, plus costs and
expenses incidental to the issuance of the Refunding Bonds including the
development of the refunding financial plan, and of executing and performing
the terms and conditions of the Escrow Contract and all fees and charges of
the Escrow Holder as referred to in Section 10 hereof.
Section 2. The Town Board of the Town (herein called the "Town Board"),
hereby authorizes the refunding of the Bonds To Be Refunded, and appropriates an amount not
to exceed $3,000,000 to accomplish such refunding. The plan of financing said appropriation
includes the issuance of not to exceed $3,000,000 Refunding Bonds and the levy and collection
of a tax upon all the taxable real property within the Town to pay the principal of and interest on
said Refunding Bonds as the same shall become due and payable. Bonds of the Town in the
maximum principal amount of $3,000,000 and substantially designated as "REFUNDING
Generated February 27. 2009 Page 60
Southold Town Board - Letter Board Meeting of February 24, 2009
SERIAL BONDS-2009", are hereby authorized to be issued pursuant to the provisions of the
Law. The proposed financial plan for the refunding in the form attached hereto as Exhibit A
(the "refunding financial plan") prepared for the Town by Roosevelt & Cross, Incorporated, New
York, New York, and hereby accepted and approved, includes the deposit of all the proceeds of
said Refunding Bonds with an Escrow Holder pursuant to ah Escrow Contract as authorized in
Section 10 hereof, the payment of all costs incurred by the Town in connection with said
refunding from such proceeds and the investment of a portion of such proceeds by the Escrow
Holder in certain obligations. The principal of and interest on such investments, together with
the balance of such proceeds to be held uninvested, if afly, shall be sufficient to pay (i) the
principal of and interest on the Bonds To Be Refunded becoming due and payable on and prior
to each applicable Redemption Date and (ii) the principal of and premium on the Bonds To Be
Refunded which are to be called for redemption prior to maturity on any such Redemption Date.
Section 3. The Bonds To Be Refunded referred to in Section 1 hereof are all or a
portion of the Outstanding Bonds issued pursuant to the bond .resolutions duly adopted on their
respective dates~ authorizing the issuance of bonds of the Town for open space and agricultural
land preservation. In accordance with the refunding financial plan, the Refunding Bonds
authorized in the aggregate principal amount of not to exceed 5;3,000,000 shall mature in
amounts and at dates to be determined. The Supervisor; the chief fiscal officer of the Town, is
hereby authorized to approve all details of the refunding financial plan not contained herein.
Section 4. The issuance of the Refunding Bonds will not exceed the Refunding
Bond Amount Limitation. The Refunding Bonds shall mature not later than the maximum
period of probable usefulness ("PPU") permitted by law at the time of original issuance of the
Bonds to be Refunded. The maximum period of probable usefulness ("PPU") of the Bonds to be
Refunded is thirty (30) years.
Section 5. The aggregate amount of estimated Present Value Savings is set forth
in the proposed refunding financial plan attached hereto as Exhibit A, computed ~n accordance
with subdivision two of paragraph b of Section 90.10 of the Law. Said refunding financial plan
has been prepared based upon the assumption that the Refunding Bonds will be issued in the
aggregate principal amount, and will mature, be of such terms and bear such interest as set forth
therein. The Town Board recognizes that the principal amount of the Refunding Bonds, the
Generated February 27, 2009 Page 61
Southold Town Board - Letter Board Meeting of February 24, 2009
maturities, terms and interest rates, the provisions, if any, for the redemption thereof prior to
maturity, and whether or not any or all of the Refunding Bonds will be insured, and the resulting
present value savings, may vary from such assumptions and that the refunding financial plan
may vary from that attached hereto as Exhibit A.
Section 6. The Refunding Bonds may be sold at public or private sale and the
Supervisor, the chief fiscal officer of the Town, is hereby authorized to execute a purchase
contract on behalf of the Town for the sale of said Refunding Bonds, provided that the terms and
conditions of such sale shall be approved by the State Comptroller, and further providing that
prior to the issuance of the Refunding Bonds the Supervisor shall have filed with the Town
Board a certificate approved by the State Comptroller setting forth the Present Value Savings to
the Town resulting from the issuance of the Refunding Bonds. In connection with such sale, the
Town authorizes the preparation of an Official Statement and approves its use in connection with
such sale, and further consents to the distribution of a Preliminary Official Statement prior to the
date said Official Statement is distributed. In the event that the Refunding Bonds are sold at
public sale pursuant to Section 57.00 of the Law, the President of the Board of Education is
hereby authorized and direct to prepare or have prepared a Notice of Sale, a summary of which
shall be published at least once in (a) "THE BOND BUYER", published in the City of New York
and (b) the official newspaper(s) of the Town having general circulation within said Town, not
less than five (5) nor more than thirty (30) days prior to the date of said sale. A copy of such
notice shall be sent not less than eight (8) nor more than thirty (30) days prior to the date of said
sale to (1) the State Comptroller, Albany, New York 12236; (2) at least two banks or trust
companies having a place of business in the county in which the Town is located, or, if only one
bank is located in such County, then to such bank and to at least two banks or trust companies
having a place of business in an adjoining county; (3) "THE BOND BUYER", 1 State Street
Plaza, New York, New York 10004; and (4) at least 10 bond dealers. The Supervisor is hereby
further authorized and directed to take any and all actions necessary to accomplish said
refunding, and to execute any contracts and agreements for the purchase of and payment for
services rendered or to be rendered to the Town in con~ection with said refunding, including the
preparation of the refunding financial plan referred to in Section 2 hereof.
Section 7. Each of the Refunding Bonds authorized by this resolution shall
Generated February 27, 2009 Page 62
Southold Town Board - Letter Board Meeting of February 24, 2009
contain the recital of validity proscribed by Section 52.00 of the Law and said Refunding Bonds
shall be general obligations of the Town, payable as to both principal and interest by a general
mx upon all the taxable real property within the Town without limitation as to rate or mount.
The faith and credit of the Town are hereby irrevocably pledged to the punctual payment of the
principal of and interest on said Refunding Bonds and provision shall be made annually in the
budget of the Town for (a) the amortization and redemption of the Refunding Bonds to mature in
such year and (b) the payment of interest to be due and payable in such year.
Section 8. Subject to the prowsions of this resolution and of the Law, and
pursuant to the provisions of Section 21.00 of the Law with respect to the issuance of bonds
having substantially level or declining annual debt service, and Sections 50.00, 56.00 to 60.00,
90.10 and 168.00 of the Law, the powers and duties of the Town Board relative to determining
the amount of Bonds To Be Refunded, prescribing the terms, form and contents and as to the sale
and issuance of the Refunding Bonds, and executing any arbitrage certification relative thereto,
and as to executing the Escrow Contract described in Section 10, the Official Statement referred
to in Section 6 and any contracts for credit enhancements in connection with the issuance of the
Refunding Bonds and any other certificates and agreements, and as to making elections- to call in
and redeem all or a portion of the Bonds to be Refunded, are hereby delegated to the Supervisor,
the chief fiscal officer of the Town.
Section 9. The validity of the Refunding Bonds authorized by this resolution may
be contested only iff
(a) such obligations are authorized for an object or purpose for which the
Town is not authorized to expend money, or
(b)
the provisions of law which should be complied with at the date of the
publication of such resolution, or a summary thereof, are not substantially
complied with,
and an action, suit or proceeding contesting such validity ~s commenced within twenty days after
the date of such publication, or
(c) such obligations are authorized in violation of the provisions of the
constitution.
Generated February 27, 2009 Page 63
Southold Town Board - Letter Board Meeting of February 24~ 2009
Section 10. Prior to the issuance of the Refunding Bonds, the Town shall contract
with a bank or trust company located and authorized to do business in New York State, for the
purpose of having such bank or trust company act as He Escrow Holder of the proceeds,
inclusive of any premium from the sale of the Refunding Bonds, together with all income
derived from the investment of such proceeds. Such Escrow Contract shall contain such terms
and conditions as shall be necessary in order to accomplish the refunding financial plan,
including provisions an~orizing the Escrow Holder, without further authorization or direction
from the Town, except as otherwise provided therein, (a) to make all required payments of
principal, interest and redemption premituns to the appropriate paying agent with respect to the
Bonds To Be Refunded, (b) to pay costs and expenses incidental to the issuance of the Refundil~g
Bonds, including the development of the refunding financial plan, and costs and expenses
relating to the execution and performance of the terms and conditions of the Escrow Contract
and all of its fees and charges as the EscroW Holder, (c) at the appropriate time or times to cause
to be given on behalf of the Town the notice of redemption authorized to be given pursuant to
Sect[on 13 hereof, and (d) to invest the monies held by it consistent with the provisions of the
refunding financial plan. The Escrow Contract shall be irrevocable and shall constitute a
covenant with the holders of the Refunding Bonds.
Section 11, The proceeds, inclusive of any premium, from the sale of the
Refunding Bonds, immediately upon receipt shall be placed in escrow by the Town with the
Escrow Holder in accordance with the Escrow Contract. All moneys held by the Escrow Holder
shall be invested only in direct obligations of the United States of America or in obligations the
principal of and interest on which are unconditionally guaranteed by the United States of
America, which obligations shall mature or be subject to redemption at the option of the holder
thereof not later than the respective dates when such moneys.will be required to make payments
in accordance with the refunding financial plan. Any such moneys remaining in the custody of
the Escrow Holder after the full execution of the Escrow Contract shall be returned to the Town
and shall be applied by the Town only to the payment of the principal of or interest on the
Refunding Bonds then outstanding.
Section 12. That portion of such proceeds from the sale of the Refunding Bonds,
together with interest earned thereon, which shall be required for the payment of the principal of
Generated February 27, 2009 Page 64
Southold Town Board ~ Letter
Board Meeting of February 24, 2009
and interest on the Bonds To Be Refunded, including any redemption premiums, in accordance
With the refunding financial plan, shall be irrevocably committed and pledged to such purpose
and the holders of the Bonds To Be Refunded shall have a lien upon such mbneys and the
investments thereof held by the Escrow Holder. All interest earned from the investment of such
moneys which is not required for such payment of principal of and interest on the Bonds To Be
Refunded shall be irrevocably committed and pledged to the payment of the principal of and
~nterest on the Refunding Bonds, or such portion or series thereof as shall be required by the
refunding financial plan, and the holders of such Refunding Bonds shall have a lien upon such
moneys held by the Escrow Holder. The pledges and liens provided for herein.shall become
valid and binding upon the issuance of the Refunding Bonds and the moneys and investments
held by the Escrow Holder shall immediately be subject thereto without any further act. Such
pledges and liens shall be valid and binding against all parties having claims of any kind in tort,
contract or otherwise against the Town irrespective of whether such parties have notice thereof.
Neither this resolution, the Escrow Contract, nor any other instrument relating to such pledges
'and liens, need be filed or recorded.
Section 13. In accordance with the provisions of Section 53.00 and of paragraph
h of Section 90.10 of the Law. the Town Board hereby elects to call in and redeem all or a
portion of the Bonds To Be Refunded which are subject to prior redemption according to their
terms on the Redemption Date, as shall be determined by the Supervisor in accordance with
Section 8 hereof. The sum to be paid therefor on the applicable Redemption Date shall be the
par value thereof, the accrued interest to such Redemption Date and the redemption premiums, if
any. The Escrow Holder is hereby authorized and directed to cause a notice of such call for
redemption to be given ~n the name of the Town by mailing such notice at least thirty days prior
to such Redemption Date, and in accordance with the terms appearing in the Bonds' to be
Refunded, to the registered holders of the Bonds To Be Refunded which are to be called in and
redeemed. Upon the issuance of the- Refunding Bonds, the election to call in and redeem the
Bonds To Be Refunded which are to be called in and redeemed in accordance herewith and the
direction to the Escrow Holder to cause notice thereof to be given as provided in this Section
shall become irrevocable and the provisions of this Section shall constitute a covenant with the
holders, from time to time, of the Refunding Bonds, provided that this Section may be amended
Generated February 27, 2009 Page 65
Southold Town Board - Letter Board Meeting of February 24, 2009
from time to time as may be necessary to comply with the publication requirements of paragraph
a of Section 53.00 of the Law, as the same may be amended from time to time.
Section 14. This bond resolution shall take effect immediately, and the Town
Clerk is hereby authorized and directed to publish the foregoing resolution, in summary, together
with a Notice attached in substantially the form prescribed by Section 81.00 of the Law in the
"The Suffolk Times" two newspapers having general circulation in the Town and hereby
designated the official newspapers of said Town for such publication.
Elizabeth A. Neville
Southold Town Clerk
RESULT: ADOPTED [UNANzMOUS]
MOVER: Vincent Orlando, Councilman
SECONDER: Albert Krupski Jr., Councilman
AYES: Rulan~t, Orlando, Krupski Jr., Wickham, I~vans, Russell
Generated February 27, 2009 Page 66
ELIZABETH A. NEVrLT.~,,, RMC, CMC
TOWN CLERK
REGISTRAR OF VITAL STATISTICS
MARRIAGE OFFICER
RECORDS MANAGEMENT OFFICER
FREEDOM OF INFORMATION OFFICER
Town Hall, 53095 Main Road
P.O. Box 1179
Southold, New York 11971
Fax (631) 765-6145
Telephone (631) 765-1800
southoldtown.northfork.net
OFFICE OF THE TOWN CLERK
TOWN OF sOUTHOLD
March 4, 2009
Town of Southold, New York
Refunding Serial Bonds-2009
(Our File Designation: (2615/
William J. Jackson, Esq.
Hawkins Delafield & Wood LLP
One Chase Manhattan Plaza
New York, NY 10005
Dear Mr. Jackson:
Enclosed are two (2) certified copies of the Extract of Minutes for the above referenced bond, a
copy of the legal notice that was sent to the Suffolk Times and Newsday for publication in their
next editions, and a certified copy of the resolution that was adopted by the Town Board on
February 24, 2009.
I will forward copies of affidavits of publication and the Estoppel Certificate when they are
received.
Please let me know if there is anything else you need for your files.
Encs
CC: Town Attomey
Town Comptroller
Very truly yours,
LYnda M Rudder
Deputy Town Clerk
LEGAL NOTICE
The resolution, a summary of which is published herewith, has been
adopted on the 24th day of February, 2009 and the validity of the obligations authorized
by such resolution may be hereafter contested only if snch obligations were authorized
for an object or purpose for which the Town of Southold, in the County of Suffolk, New
York, is not authorized to expend money or if the provisions of law which should have
been complied with as of the date of publication of this Notice were not substantially
complied with, and an action, suit or proceeding contesting such validity is commenced
within twenty days after the publication of this Notice, or such obligations were
authorized in violation of the provisions of the constitution.
BY ORDER OF THE TOWN BOARD OF THE TOWN OF SOUTHOLD
DATED: February 24, 2009
Southold, New York
Elizabeth A. Neville
Town Clerk
REFUNDING BOND RESOLUTION OF THE TOWN OF
SOUTHOLD, NEW YORK, ADOPTED FEBRUARY 24, 2009,
AUTHORIZING ' THE REFUNDING OF CERTAIN
OUTSTANDING SERIAL BONDS OF SAID TOWN, STATING
THE PLAN OF REFUNDING, APPROPRIATING AN
AMOUNT NOT TO EXCEED $3,000,000 FOR SUCH
PURPOSE, AUTHORIZING THE ISSUANCE OF NOT TO
EXCEED $3,000,000 REFUNDING BONDS TO FINANCE
SAID APPROPRIATION, AND MAKING CERTAIN OTHER
DETERMINATIONS RELATIVE THERETO.
The object or purpose is to refund of all or a portion of certain outstanding serial bonds of
the Town issued in 1998 and 1999 for open space and agricultural land preservation.
The period of probable usefulness for which the 1998 and 199 bonds were issued is thirty
(30) years, commencing on the date of original issuance of the first bonds or bond
note~
anticipation issued for the respective purposes for which the outstanding"d~nds'
were issued.
The amount of obligations to be Issue.d is not to exceed $3,000,000
A complete copy of the Bond Resolution summarized above shall be available for public
inspection during normal business hours at the office of the Town Clerk, Town Hall,
53095 Main Road, Southold, New York.
BY ORDER OF THE TOWN BOARD
OF THE TOWN OF SOUTHOLD
Dated: February 24, 2009
Southold, New York
ELIZABETH A. NEVILLE
Town Clerk
PLEASE PUBLISH ON March 12, 2009, AND FORWARD THREE (3)
AFFIDAVITS OF PUBLICATION TO ELIZABETH A. NEVILLE, TOWN
CLERK, TOWN HALL, P.O. BOX 1179, SOUTHOLD, NY 11971
Copies to the following:
Suffolk Times
Town Attorney
Bond Council
Town Board Members
Accounting
Town Clerk's Bulletin Board
STATE OF NEW YORK )
SS:
COUNTY OF SUFFOLK)
ELIZABETH A. NEVILLE, Town Clerk of the Town of Southold, New York being
duly sworn, says that on the 3ra day of March ,2009, she affixed a notice of
which the annexed printed notice is a tree copy, in a proper and substantial manner, in a
most public place in the Town of Southold, Suffolk County, New York, to wit: Town
Clerk's Bulletin Board, 53095 Main Road, Southold, New York.
2009 Refunding Bond
t~zabeth A.'~l~eville / -
Southold Town Clerk
Snw~[n before me this
~ day of fY1 ~g..e~h , .2009.
Ndtary Public
LYNDA M. BOHN
NOTARY PUBLIC State o! New YO~
No 01BO6020932
Qualified in Suffolk Cour~t~
Page 1 of l
Rudder, Lynda
From: ND-LegalAdv[legaladv@newsday.com]
Sent: Wednesday, March 04, 2009 11:58 AM
To: Rudder, Lynda
Subject: Re: For Publication
ad received.
Kathy
>>> "Rudder, Lynda" <lynda.rudder@town.southold.ny.us> 3/4/2009 11:53 AM >>>
Please publish the attached notice in the Suffolk county edition of Newsday in the next edition, forward
three (3) affidavits of publication and acknowledge receipt of this email, thank you.
Lynda M Rudder
Lynda M Rudder
Deputy Southold Town Clerk
Principal Account Clerk
53095 Main Road
PO Box 1179
Southold, NY 11971
(631)765-1800 ext 265
The information transmitted in this email and any of its attachments is intended only for the
person or entity to which it is addressed and may contain Cablevision proprietary information,
which is privileged, confidential, or subject to copyright belonging to Cablevi$ion. Any review,
retransmission, dissemination or other use of, or taking of any action in reli.ance upon, this
information by persons or entiUes other than the intended recipient is prohibited and may be
unlawful. Tf yOU received this in error, please contact the sender immediately and delete and
de~troy the communication and all of the attachments you have received and all copies thereof.
3/4/2009
Rudder, Lynda
From:
Sent:
To:
Subject:
postmaster@town.southold.ny.us
Wednesday, March 04, 2009 11:54 AM
Rudder, Lynda
Delivery Status Notification (Relay)
A'FI'163159~..txt For Publication
(~33 S)
This is an automatically generated Delivery Status Notification.
Your message has been successfully relayed to the following recipients, but the requested delivery status
notifications may not be generated by the destination.
legaladv~newsday.com
Page I of 1
Rudder, Lynda
From: Rudder, Lynda
Sent: Wednesday, March 04, 2009 11:53 AM
To: legaladv@newsday,com
Subject: For Publication
Please publish the attached notice in the Suffolk county edition of Newsday in the next
edition, forward three (3) affidavits of publication and acknowledge receipt of this email,
thank you.
Lynda M Rudder
Lynda M Rudder
Deputy Southold Town Clerk
Principal Account Clerk
53095 Main Road
PO Box 1179
Southold, NY 11971
(631)765'1800 ext 265
3/4/2009
Page 1 of I
Rudder, Lynda
From: Candice Schott[cschott@timesreview.com]
Sent: Wednesday, March 04, 2009 11:51 AM
To: Rudder, Lynda
Subject: RE: For publication 3/12/09
Hi Lynda,
I received your legal ad and it is set to run in the 3/12 edition.
Thanks, Candice
From: Rudder, Lynda [mailto:lynda.rudder@town.southold.ny.us]
Sent: Wednesday, March 04, 2009 11:10 AN
To: legals@timesreview.com
Subject: For publication 3/12/09
Please publish in the 3/12/09 edition, forward three (3) affidavits of publication and
acknowledge receipt of this email. Thank you
Lyndo AA Rudder
Lynda M Rudder
Deputy Southold Town Clerk
Principal Account Clerk
53095 Main Road
PO Box 1179
Southold, NY 11971
(631)765'1800 ext 265
3/4/2009
Page 1 of 1
Rudder, Lynda
From: Rudder, Lynda
Sent: Wednesday, March 04, 2009 11:10 AM
To: 'legals@timesreview.com'
Subject: For publication 3/12/09
Please publish in the 3/12/09 edition, forward three (3) affidavits of publication and
acknowledge receipt of this email. Thank you
Lynda M Rudder
Lynda M Rudder
Deputy Southold Town Clerk
Principal Account Clerk
53095 Main Road
PO Box 1179
Southold, NY 11971
(631)765-1800 ext 265
3/4/2009
Rudder, Lynda
From:
Sent:
To:
Subject:
postmaster@town.southold, ny. us
Wednesday, March 04, 2009 11:10 AM
Rudder, Lynda
Delivery Status Notification (Relay)
A'l:T1631051.b(t :or publication 3/12~
(239 B) 09
This is an automatically generated Delivery Status Notification.
Your message has been successfully relayed to the following recipients, but the requested delivery status
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legals@timesreview.com
CERTIFICATE
I, ELIZABETH A. NEVILLE, Town Clerk of the Town of Southold, in
the County of Suffolk, New York, HEREBY CERTIFY that the foregoing annexed
extract of the minutes of a meeting of the Town Board of said Town of Southold duly
called and held on February 24, 2009, has been compared by me with the original
minutes as officially recorded in my office in the Minute Book of said Town Board and is
a true, complete and correct copy thereof and of the whole of said original minutes so far
as the same relate to the subject matters referred to in said extract.
1N WITNESS WHEREOF, I have hereunto set my hand and affixed the
corporate seal of said Town of Southold this
24th day of February, 2009.
To;n'Cler~
#9201
STATE OF NEW YORK)
) SS:
COUNTY OF SUFFOLK)
Karen Kine of Mattituck, in said county, being duly sworn, says that she is
Principal Clerk of THE SUFFOLK TIMES, a weekly newspaper, published at
Mattituck, in the Town of Southold, County of Suffolk and State of New York, and that
the Notice of which the annexed is a printed copy, has been regularly published in
said Newspaper once each week for 1__ week(s), successively, commencing on the
12th day of March, 2009.
" Principal Clerk
Sworn to before me this
3 day of
~ 2009.
NOTARY PUBLIC-STATE OF NEW YORK
NO1 01-V06105050
Qualified In Suffolk County
My Commission1 Expires Februory 28, 2012
LEGAL NOTICE
'The. resolution, a summary of which
is published herewith, has been adopted
on the 24th day of February. 2009 and
the validity of the obligations au thorized
by such resolution may be hereafter
conlested only ~f such obligations were
authorized for an object or purpose
for which the Town of Southo[d, in the
County of Suffolk. New York, is not
tl~orized to expend money or if the pro-
'~isinns of law which should have been
complied with as of the date of publi-
cation of this Notice were not substan-
#ally comp]led vgth, and an action, suit
· r proceeding contesting such validity is
commenced within twenty days after the
[mbliqafion of this Notice, or such obit
~afions were authorized in violation of
the provisions of the constitution.
BY ORDER OF THE TOWN BOARD
OFTHE TOWN OF SOUTHOLD
Elizabeth A. Neville
ToWn Clerk
DATED: February. 24, 24)09
Southold, New York
REFUNDING BOND RESO-
LUTION OF THE TOWN OF
SOUTHOLD, NEW YORK. AD-
OPTED FEBRUARY 24, 2009, AU-
THORIZING THE 'REFUNDING OF
CERTAIN OUTSTANDING SERIAL
BONDS OF SAID TOWN, STATING
THE PLAN OF REFUNDING, AP-
PROPRIATING AN AMOUNT NOT
TO EXCEED $3,000,000 FOR SUCH
PURPOSE, AUTHORIZING THE
ISSUANCE OF NOT TO EXCEED
$3,000~000 REFUNDING BONDS TO
F1NANCE SAID APPROPRIATION,
AND MAKING CERTAIN OTHER
DETERMINATIONS REI~AT[VE
THERETO.
The object or purpose is to refund of
all or a portion of certain outstanding
serial bonds of the Town issued in 1998
and 1999 for open space a~d agricultural
land preservation.
The period of probable usefulness for
which the 1998 and 199 bonds were is-
sued is thirty (30) years, commencing on
the date of original issuance of the f~rst
bonds or bond anticipation notes issued
for the respective purposes for which the
outstanding bonds were issued.
The amount of obligations to be Is
sued is not to exceed $3,000,000
A complete copy of the Bond Reso-
lution summarized above shall be avail-
able for public inspection during normal
business hours at the office of the Town
Clerk. Town Hall, 53095 Main Road.
Southold. New York.
9201-1T 3/!2
EXTRACT OF MINUTES
Meeting of the Town Board of the Town of Southold,
in the County of Suffolk, New York
February 24, 2009
A regular meeting of the Town Board of the Town of Southold, in the
County of Suffolk, New York, was held at the Town Hall, 53095 Main Road, Southold,
New York, on February 24, 2009.
There were present:
Board Members:
Scott A. Russell, Supervisor; and
Councilman Albert Krupski, Jr
Councilman Vincent Orlando
Councilman William Ruland
Councilman Thomas Wickham
Justice Louisa Evans
There were absent:
None
Also present: Elizabeth A. Neville, Town Clerk
Councilman Vincent Orlando offered the following resolution and moved its
adoption:
REFUNDING BOND RESOLUTION OF THE TOVv2q
OF SOUTHOLD, NEW YORK, ADOPTED
FEBRUARY 24, 2009, AUTHORIZING THE
REFUNDING OF CERTAIN OUTSTANDING SERIAL
BONDS OF SAID TOWN, STATING THE PLAN OF
REFUNDING, APPROPRIATING AN AMOUNT NOT
TO EXCEED $3,000,000 FOR SUCH PURPOSE,
AUTHORIZING THE ISSUANCE OF NOT TO
EXCEED $3,000,000 REFUNDING BONDS TO
FINANCE SAID APPROPRIATION, AND MAKING
CERTAIN OTHER DETERMINATIONS RELATIVE
THERETO.
Recitals
WHEREAS, the Town of Southold, in the County of Suffolk, New York
(herein called the "Town"), has heretofore issued on May 19, 1998 its $2,000,000
Agricultural Land Preservation Serial Bonds-1998 {the "1998 Bonds"), which are
cui'rently outstanding in the principal amount of $1,120,000 (the "Outstanding 1998
Bonds"), which shall mature on May 1 in each of the years and in the principal amounts
and bear interest payable semiannually on May 1 and November I in each year to
maturity, as follows:
Year of Principal Interest
Maturity Amount Rme
2009 $100,000 4.85%
2010 100,000 4.85
2011 110,000 4.85
2012 110,000 4.85
2013 110;000 4.85
2014 110,000 4-7/8
2015 120,000 4-7/8
2016 120,000 4-7/8
2017 $120,000 4-7/8%
2018 120,000 4-7/8
WHEREAS, the 1998 Bonds maturing on or after May 1, 2009 are subject
to redemption prior to maturity, at the option of the Town, on May 1, 2008 and thereafter
on any date, in whole or in pan. in inverse order or maturity or in equal proportionate
amounts (selected by lot within a maturity), au the f~llowing redemption prices, plus
accrued interest to the date of redemption:
Redemption Dates
(all dates inclusive)
Redemption Prices
(Percentages of Principal Amount)
May 1, 2008 to April 30, 2009
May 1. 2009 to April 30, 2010
May 1, 2010 and thereafter
102%
I01
100
WHEREAS, on May 18, 1999 the Town issued its $1,900,000 Open Space
Preservation Serial Bonds-1999 (the "1999 Bond~'), which are Currently outstanding in
the principal amount of $1.160,000 (the "Outstanding 1999 Bonds" and together with the
1998 Outstanding Bonds, the "Outstanding Bonds"), which shall mature on May I in
each of the years and in the pnnc~pal amounts and bear interest payable semiannually on
May I and November 1 in each year to maturity, as follows:
Year of Principal Interest
Maturity Amount Rat~
2009 $ 90,000 4.70%
2010 90,000 4.70
2011 100,000 4.70
2012 100,000 4.70
2013 100,000 4.70
2014 110,000 4.70
2015 I10,000 4.70
2016 110,000' 4.70
2017 110,000 ' 4.70
2018 120,000 4.70
Year of Principal Interest
Maturity Amount Rate
2019 120,000 4.70
WHEREAS, the 1999 Bonds maturing on or after May 1, 2010 are subject
to redemption prior to maturity, at the option of the Town, on May 1, 2009 and thereafter
on any date, in whole or in part, and if in part. in inverse order of maturity or in equal
proportionate amounts (selected by lot within a maturity), at the following redemption
prices, plus accrued interest to the date of redemption, as follows:
Redemption Dates
fBoth Dates Inclusive)
May 1, 2009to April 30, 2010
May 1,2011 to April 30, 2011
May 1, 2012 and thereafter
Redemption Prices
(Percentages of Principal Amount)
102%
101
100
WHEREAS, Section 90.10 of the Local Finance Law, constituting Chapter
33-a of the Consolidated Laws of the State of New York (herein called the "Law"),
permits the Town to refund all or a portion of the outstanding unredeemed maturities of
the 1998 Bonds and the 1999 Bonds by the issuance of new bonds, the issuance of which
will result in present value debt service savings for the Town, and the Town Board has
determined that it may be advantageous to refund all or a portion of the Outstanding
Bonds;
NOW, THEREFORE, be it
RESOLVED BY THE TOWN BOARD OF THE TOWN OF
SOUTHOLD, NEW YORK (by the favorable vote of at least two-thirds of all the
members of said Town Board), AS FOLLOWS:
Section 1. In this resolution, the following definitions' apply, unless a
different meaning clearly appears from the context:
(a) "Bond To Be Refunded" or "Bonds To Be Refunded" means all or a
portion of the aggregate Outstanding Bonds, as shall be determined in
accordance with Section 8 hereof.
(b) "Escrow Contract" means the contract to be entered into by and
between the Town and the Escrow Holder pursuant to Section 10
hereof.
(c) "Escrow Holder" means the bank or trust company designated as such
pursuant to Section 10 hereof.
(d) "Present Value Sayings" means the dollar savings which result from
the issuance of the Refunding Bonds computed by discounting the
principal and interest payments on both the Refunding Bonds and the
Bonds To Be Refunded from the respective maturities thereof to the
date of issue of the Refunding Bonds at a rate equal to the effective
interest cost of the Refunding Bonds. The effective interest cost of the
Refunding Bonds shall be that rate which is arrived at by doubling the
semi-annual interest rate (compounded semi-annually) necessary to
discount the debt service payments on the Refunding Bonds from the
maturity dates thereof to the date of issue of the Refunding Bonds and
.to the agreed upon price including estimated accrued interest.
(e) "Redemption Date" means May 1, 2008, or any date thereafter, with
respect to the 1998 Bonds and May 1, 2009 with respect to the 1999
Bonds.
(0 "Refunding Bond" or "Refunding Bonds" means all or a portion of the
$3,000,000 Refunding Serial Bonds-2009 of the Town of Southold,
authorized to be issued pursuant to Section 2 hereof.
(g) Refunding Bond Amount L~mltatlon means an amount of Refunding
Bonds which does not exceed the principal amount of Bonds To Be
Refunded plus the aggregate amount of unmatured interest payable on
such Bonds To Be Refunded, to and including the applicable
Redemption Date, plus redemption premiums payable on such Bonds
To Be Refunded as of such Redemption Date, as hereinabove referred
to in the Recitals hereof, plus costs and expenses incidental to the
issuance of the Refunding Bonds including the development of the
refunding financial plan, and of executing and performing the terms
and conditions of the Escrow Contract and all fees and charges of the
Escrow Holder as referred tO in Section 10 hereof.
Section 2. The Town Board of the Town (herein called the "Town
Board"), hereby authorizes the refunding of the Bonds To Be Refunded, and appropriates
an amount not to exceed $3,000,000 to accomplish such refunding. The plan of financing
said appropriation includes the issuance of not to exceed $3,000,000 Refunding Bonds
and the levy and collection of a tax upon all the taxable real property within the Town to
pay the principal of and interest on said Refunding Bonds as the same shall become due
and payable. Bonds of the Town in the maximum principal amount of $3,000,000 and
substantially designated as "REFUNDING SERIAL BONDS-2009", are hereby
authorized to be issued pursuant to the provisions of the Law. The proposed financial
plan for Ihe refunding in the form attached hereto as Exhibit A (the "refunding financial
plan") prepared for the Town by Roosevelt & Cross, Incorporated, New York, New
York, and hereby accepted and approved, includes the deposit of all the proceeds of.said
Refunding Bonds with an Escrow Holder pursuant to an Escrow Contract as authorized in
Section 10 hereof, the payment of all costs incurred by the Town in connection with said
refunding from such proceeds and the investment of a portion of such proceeds by the
EScrow Holder in certain obligations. The principal of and interest on such investments,
together with the balance of such proceeds to be held uninvested, if any, shall be
sufficient to pay (i) the principal of and interest on the Bonds To Be Refunded becoming
due and payable on and prior to each applicable Redemption Date and (ii) the principal of
and premium on the Bonds To Be Refunded which are to be called for redemption prior
to maturity on any such Redemption Date.
Section 3. The Bonds To Be Refunded referred to in Section 1 hereof are
all or a portion of the Outstanding Bonds issued pursuant to the bond resolutions duly
adopted on their respective dates, authorizing the issuance of bonds of the Town for open
space and agricultural land preservation. In accordance with the refunding financial plan,
the Refunding Bonds authorized in the aggregate principal amount of not to exceed
$3,000,000 shall mature in amounts and at dates to be determined. The Supervisor, the
chief fiscal officer of the Town, is hereby authorized tO approve all details of the
refunding financial plan not contained herein.
Section 4. The issuance of the Refunding Bonds will not exceed the
Refunding Bond Amount Limitation. The Refunding Bonds shall mature not later than
the maximum period of probable usefulness ("PPU") permitted by law at the time of
original issuance of the Bonds to be Refunded. The maximum period of probable
usefulness ("PPU") of the Bonds to be Refunded is thirty (30) years.
Section 5. The a~gregate amount of estimated Present Value Savings is
set forth in the proposed refunding financial plan attached hereto as Exhibit A, computed
in accordance with subdivision two of paragraph b of Section 90.10 of the Law. Said
refunding financial plan has been prepared based upon the assumption that the Refunding
Bonds will be issued in the aggregate principal amount, and will mature, be of such terms
and bear such interest as set forth therein. The Town Board recognizes that the principal
amount of the Refunding Bonds, the maturities, terms and interest rates, the provisions, if
any, for the redemption thereof prior to maturity, and whether or not any or all of the
Refunding Bonds will be insured, and the resulting present value savings, may vary from
such assumptions and that the refunding financial plan may vary from that attached
hereto as Exhibit A.
Section 6. The Refunding Bonds may be sold al public or private sale and
the Supervisor, the chief fiscal officer of the Town, is hereby authorized to execute a
purchase contract on behalf of the Town for the sale of said Refunding Bonds, provided
that the terms and conditions of such sale shall be approved by the State Comptroller, and
further providing that prior to the issuance of the Refunding Bonds the Supervisor shall
have filed with the Town Board a certificate approved by the State Comptroller setting
forth the Present Value Savings to the Town resulting from the issuance of the Refunding
. Bonds. In connection with such sale, the Town authorizes the preparation of an Official
Statement .and approves its use in connection with such sale, and further consents to the
distribution of a Preliminary Official Statement prior to the date said Official Statement is
distributed. In the event that the Refunding Bonds are sold at public sale pursuant to
Section 57.00 of the Law, the President of the Board of Education is hereby authorized
and direct to prepare or have prepared a Notice of Sale, a summary of which shall be
published at least once in (a) "THE BOND BUYER", published in the City of New York
and (b) the official newspaper(s) of the Town having general circulation within said
Town, not less than five (5) nor more than thirty (30) days prior to the date of said sale.
A copy of such notice shall be sent not less than eight (8) nor more than thirty (30) days
prior to the,date of said sale to (1) the State Comptroller, Albany, New York 12236; (2) at
least two banks or trust companies having a place of business in the county in which the
Town is located, or, if only one bank is located in such County, then to such bank and to
at least two banks or trust companies having a place of business in an adjoining county;
(3) "THE BOND BUYER", 1 State Street Plaza, New York, New York 10004; and (4) at
least 10 bond dealers. The Supervisor is hereby further authorized and directed to take
any and all actions necessary to accomplish said refunding, and to execute any contracts
and agreements for the purchase of and payment for services rendered or to be rendered
to the Town in connection with said refunding, including the preparation of the refunding
financial plan referred to in Section 2 hereof.
Section 7. Each of the Refunding Bonds authorized by this resolution
shall contain the recital of validity prescribed by Section 52.00 of the Law and said
Refunding Bonds shall be general obligations of the Town, payable as to both principal
and interest by a general tax upon all the taxable real property within the Town without
limitation as to rate or amount. The faith and credit of the Town are hereby irrevocably
pledged to the punctual payment of the principal of and interest on said Refunding Bonds
and provision shall be made annually in the budget of the Town for (a) the amortization
and redemption of the Refunding Bonds to mature in such year and (b) the payment of
interest to be due and payable in such year.
Section 8. Subject to the provisions of this resolution and of the Law, and
pursuant to the provisions of Section 21.00 of the Law with respect to the issuance of
bonds having substantially level or declining annual debt service, and Sections 50.00,
56.00 to 60.00, 90.10 and 168.00 of the Law, the powers and duties of the Town Board
relative to determining the amount of Bonds To Be Refunded, prescribing the terms, form
and contents and as to the sale and issuance of the Refunding Bonds, and executing any
arbitrage certification relative thereto, and as to executing the Escrow Contract described
in Section 10, the Official Statement referred to in Section 6 and any contracts for credit
enhancements in connection with the issuance of the Refunding Bonds and any other
certificates and agreements, and as to making elections to call in and redeem all or a
portion of the Bonds to be Refunded, are hereby delegated to the Supervisor, the chief
fiscal officer of the Town.
Section 9. The validity of the Refunding Bonds authorized by this
resolution may be contested only if:
(a) such obligations are authorized for an object or purpose for which
the Town is not authorized to expend money, or
(b) the provisions of law which should be complied with at the date of
the publication of such resolution, or a summary thereof, are not
substantially complied with,
and an action, suit or proceeding contesting such val~idity is commenced within twenty
days after the date of such publication, or
(c) such obligations are authorized in violation of the provisions of the
constitution.
Section 10. Prior to the issuance of the Refunding Bonds, the Town shall
contract with a bank or trust company located and authorized to do business in New York
State, for the purpose of having such bank or trust ~ompany act as the Escrow Holder of
' the proceeds, inclusive of any premium from the sale of the Refunding Bonds, together
with all income derived from the investment of such proceeds. Such Escrow Contract
shall contain such terms and COnditions as shall be necessary in order to accomplish the
refunding financial plan, including provisions authorizing the Escrow Holder, without
further authorization or direction from the Town, except as otherwise provided therein,
(a) to make all required payments of principal, interest and redemption premiums to the
appropriate paying agent with respect to the Bonds To Be Refunded, (b) to pay costs and
expenses incidental to the issuance of the Refunding Bonds, including the development
of the refunding financial plan, and costs and expenses relating to the execution and
performance of the terms and conditions of the Escrow Contract and all of its fees and
charges as the Escrow Holder, (c) at the appropriate time or times to cause to be given on
behalf of the Town the notice of redemption authorized to be given pursuant to Section
13 hereof, and (d) to invest the monies held by it consistent with the provisions of the
refunding financial plan. The Escrgw Contract shall be irrevocable and shall constitute a
covenant with the holders of the Refunding Bonds.
Section 11. The proceeds, inclusive of any premium, from the sale of the
Refunding Bonds, immediately upon receipt shall be placed in escrow by the Town with
the Escrow Holder in accordance with the Escrow Contract. All moneys held by the
Escrow Holder shall be invested only in direct ~)bligations of the United States of
America or in obligations the pnncipal of and interest on which are unconditionally
guaranteed by the United States of America, which obligations shall mature or be subject
to redemption at the option of the holder thereof not later than the respective dates when
such moneys will be required to make payments in accordance with the refunding
financial plan. Any such moneys remaining in the custody of the Escrow Holder after the
full execution of the Escrow Contract shall be returned to the Town and shall be applied
by the Town only to the payment of the principal of or interest on the Refunding Bonds
then outstanding.
Section 12. That portion of such proceeds from the sale of the Refunding
Bonds, together with interest earned thereon, Which shall be required for the payment of
the principal of and interest on the Bonds To Be Refunded, including any redemption
premiums, in accordance with the refunding financial plan, shall be irrevocably
committed and pledged to such purpose and the holders of the Bonds To Be Refunded
shall have a lien upon such moneys and the investments thereof held by the Escrow
Holder. All interest earned from the investment of such moneys which is not required for
such payment of pnnc:pal of and .interest on the Bonds To Be Refunded shall be
irrevocably committed and pledged to the payment of the principal of and interest on the
Refimding Bonds, or such portion or series thereof as shall be required by the refunding
financial plan, and, the holders of. such Refunding Bonds shall have a lien upon such
moneys held by the Escrow Holder. The pledges and liens provided for herein shall
become valid and binding up9n the issuance of the Refunding Bonds and the moneys and
~nvestments held by the Escrow Holder shall immediately be subject thereto without any
further act. Such pledges and liens shall be valid and binding against all parties having
claims of any kind in tort, contract or otherwise against the Town irrespective of whether
such parties have notice thereof. Neither this resolution, the Escrow Contract, nor any
6ther instrument relating to such pledges and liens, need be filed or recorded.
Section 13. In accordance with the provisions of Section 53.00 and of
paragraph h of Section 90.10 of the Law, the Town Board hereby elects to call in and
redeem all or a portion of the Bonds To Be Refunded which are subject to prior
redemption according to their terms on the Redemption Date, as shall be determined by
the Supervisor in accordance with Section 8 hereof. The sum to be paid therefor on the
applicable Redemption Date shall be the par value thereof, the accrued interest to such
Redemption Date and the redemption premiums, if any. The Escrow Holder is hereby
authorized and directed to cause a notice of such call for redemption to be given in the
name of the Town by mailing such notice at least thirty days prior to such Redemption
Date, and in accordance with the terms appearing in ~he Bonds to be Refunded, to the
registered holders of the Bonds To Be Refunded which are to be called in and redeemed.
Upon the issuance of the Refunding Bonds. the election to call in and redeem the Bonds
To Be Refunded which are to be called in and redeemed in accordance herewith and the
direction to the Escrow Holder to cause notice thereof to be given as provided in this
Section shall become irrevocable and the provisions of this Section shall constitute a
covenant with the holders, from time to time, of the Refunding Bonds, provided that this
Section may be amended from time to time as may be necessary to comply with the
publication requirements of paragraph a of Section 53.00 of the Law, as the same may be
amended from time to time.
Section 14. This bond resolution shall take effect immediately, and the
Town Clerk is hereby authorized and directed to publish the foregoing resolution, in
summary, together with a Notice attached in substantially the form prescribed by Section
81.00 of the Law in the "The Suffolk Times," a newspaper having general circulation in
the Town and hereby designated the official newspaper of said Town for such
publication.
The adoption of the foregoing resolution was seconded by Councilman
Albert Krupski, Jr. and duly put to a vote on roll call, Which resulted as follows:
AYES: Scott A. Russell, Supervisor
Councilman Albert Krupski, Jr
Councilman Vincent Orlando
Councilman William Ruland
Councilman Thomas Wickham
Justice Louisa Evans
NOES: None
The resolution was declared adopted.
Dated Date
3~4~2009
Refunding Par Amount
Bond Arbitrage Yield
Escrow Yield
Refunded Bonds Par Amount
Average Coupon of Refunded Bonds
2,335.000
2.455716%
0.232195%
2.280.000
4.778313%
Net PV Savings 113.090.35
Pementage of PV Savings 4.960103%
Aggregate Budgetary Savings 122,701.25
Annual Budgetary Savings (DEC 31)
Fiscal Year 2009
Fiscal Year 2010
Fiscal Year 2011
Fiscal Year 2012
Fiscal Year 2013
Fiscal Year 2014
Fiscal Year 2015
Fiscal Year 2016
Fiscal Year 2017
Fiscal Year 2018
Fiscal Year 2019
14.792.50
10.767.50
10,841.25
10,812.50
10,671.25
10.281.25
11,480.00
14.360.00
12.140.00
11.035.00
5,520.00
ROOSEVELT 8, CROSS
2/I 112009
SOURCES AND USES OF FUNDS
Town of Southold. New York
Refunding Bonds
REFUNDING OF 1998 BONDS (5/1/09-18)
REFUNDING OF 1999 BONDS (5/1/09-19)
UNENHANCED); (NOT BANK QUALIFIED); (NON-CALLABLE)
^a3 UNDERLYING
Dated Date 03/04/2009
Delivery Date 03/04/2009
Sources;
Bond Proceeds:
Par Amount 2.335,000.00
Net Premium 123.056.75
2.458,056.75
Uses:
Refunding Escrow Deposits:
Cash Deposit
SLGS Purchases
Delivery Date Expenses:
Cost of Issuance
Underwriter's Discount
20.54
2~373,39.5.00
2,373.415.54
60,000.00
20,000.00
80.000.00
Other Uses uf Funds:
Additional Proceeds 4,641.21
2.458,056.75
Feb 11 2009 10:49 am Prepared by Roosevelt & Cross. Inc. (c) (Finance 6.009 nys:R29899) Page 1
SOURCES AND USES OF FUNDS
Town of Southol¢ New York
Refunding Bonds
REFUNDING OF 1998 BONDS (5/1/09-18)
REFUNDING OF 1999 BONDS (5/1/09-19)
(UNENHANCED); (NOT BANK QUALIFIED); (NON-CALLABLE)
Aa3 UNDERLYING
Dated Date 03/04/2009
Delivery Date 03/04/2009
REFUNDING REFUNDING
Sources: BONDS BONDS Total
Bond Proceeds:
ParAmount 1,148,000.00 1,187.000.00 2,335.000.00
Premium 59.161.91 63.894.84 123.056.75
1,207,161.91 1.250,B94.84 2,458,056.75
REFUNDING REFUNDING
Uses: BONDS BONDS Total
Refunding Escrow Deposits:
Cash Deposit
SLGS Purchases
Deliver Date Expenses:
Cost of Issuance
Underwriter's Discount
Other Uses of Funds:
Additional Proceeds
10.12 10.42 20.54
1~165,177.00 1~208~218.00 2,373.395.00
1,165, 187.12 1,208,228.42 2,373,415.54
29,498.93 30,501.07 60,000.00
9~832.98 10~167.02 20,000.00
39,331.91 40,668.09 80,000.00
2.642~88 1.998.33 4.641.21
1,207,161.91 1,250,894.84 2.458.056.75
Feb 11. 2009 10:49 am Prepared by Roosevelt & Cross, Inc. (c) (Finance 6.009 nys:R29899) Page 2
SUMMARY OF REFUNDING RESULTS
Town of Southold. New York
Refunding Bonds
~EFUNDING OF 1998 BONDS (5/1/09-18)
REFUNDING OF 1999 BONDS (51.1/09-19)
(UNENHANCED); (NOT BANK QUALIFIED); (NON-CALLABLE)
Aa3 UNDERLYING
Dated Date
Delivery Date
Arbitrage yield
Escrow yield
Bond Par Amount
True Interest Cost
Net Interest Cost
All-In TIC
Average Coupon
Average Life
Par amount of refunded bonds
Average coupon of refunded bonds
Average life of refunded bonds
PV of prior debt to 03/04/2009 @ 2.455716%
Net PV Savings
Percentage sawngs of refunded bonds
Percentage sawngs of refunding bonds
03/04/2009
03/04/2009
2.455716%
0.232195%
2.335.000.00
2.637296%
2.752008%
3.196107%
3.646620~
4.933
2,280,000.00
4.778313%
5.145
2,566.505.89
113.090.35
4.960103%
4.843270%
Feb 11. 2009 10:49 am Prepared by Roosevelt & Cross. Inc. (c) (Finance 6.009 nys:R29899) Page 3
Date
05/01/2009
11/01/2009
12/31/2009
05/01/2010
11/01/2010
12/31/2010
05/01/2011
11/01/2011
12/31/2011
05/01/2012
11/0112012
12/31/2012
05/01/2013
11/01/2013
1213112013
0510112014
11/01/2014
12/31/2014
05/01/2015
1110112015
12/31/2015
05/01/2016
11/01/2016
12/31/2016
05/01/2017
11/01/2017
12/31/2017
05/01/2018
11/0112018
12/31/2018
05/01/2019
12/31/2019
SAVINGS
Town of Southold. New York
Refunding 'Bonds
REFUNDING OF 1998 BONDS (511/09-18)
REFUNDING OF 1999 BONDS (5/1/09-19)
(UNENHANCED); (NOT BANK QUALIFIED); (NON-CALLABLE)
Aa3 UNDERLYING
Present Value
Prior Refunding Annual to 03/04/2009
Debt Service Debt Service Savings Savings @ 2.4557162%
244.493,75 246.305.00 -1 811.25 -1,804,26
49,953,75 33,350.00 16,603.75 16.339,09
14.792.50
239.953.75 243,350.00 -3,396.25 -3,301.58
45,413.75 31,250.00 14,163.75 13,601.91
10,767.50
255.413.75 256,250.00 -836.25 -793.34
40,396.25 28,718.75 11.677.50 10,943.88
10.841.25
250.396.25 248.718.75 1,677.50 1,553.04
35,378.75 26,243.75 9.135.00 8,354.68
10.812.50
245.378.75 241.243.75 4,135.00 3,735.91
30,361.25 23.825.00 6,536.25 5.833.78
10.671.25
250.361.25 243,825.00 6.536.25 5.763.02
25,095.00 21.350.00 3.745.00 3.261.92
10,281.25
255.095.00 246.350.00 8.745.00 7.524.56
19.585.00 16.850.00 2,735.00 2.324.76
11.480.00
249,585,00 236,850.00 12.735.00 10,693.50
14,075.00 12.450.00 1.625.00 1.347.95
14.360.00
244,075.00 232.450.00 11.625.00 9,526.07
8,565.00 8,050.00 515.00 416.90
12.140.00
248,565.00 238.950.00 10,515,00 8,408.72
2.820.00 2.300.00 520.00 410.79
11.035.00
122.820.00 117300.00 5.520.00 4,307.84
5.520.00
2,877.781.25 2.755.080.00 122.701.25 122,701.25 108,449.14
SavJnas Summary
PV of savings.from cash flow
Plus: Refunding funds on hand
108.449.14
4.641.21
Net PV Savings 113.090.35
Feb 11. 2009 10:49 am Prepared by Roosevelt & Cross, Inc. (c) (Finance 6.009 nys:R29899) Page 4
Bond Component
BOND PRICING
Town of Southold, New York
Refunding Bonds
REFUNDING OF 1998 BONDS (5/1/09-18)
REFUNDING OF' 1999 BONDS (5/1/09-19)
UNENHANCED); (NOT BANK QUALIFIED); (NON-CALLABLE)
Aa3 UNDFcRLYING
Maturity.
Date Amount Rate Yield
Price
SedalBonds:
05/01/2009 235,000 2.000% 1.000% 100.157
05/01/2010 210,000 2.000% 1.150% 100.974
05/01/201.1 225,000 2.250% 1.550% 101.479
05/01/2012 220,000 2.250% 1.690% 101.714
05/01/2013 215.000 2.250% 1.860% 101.552
05/01/2014 220.000 2.250% 2.130% 100.581
05/01/2015 225.000 4.000% 2.310% 109.646
05/01/2016 220.000 4.000% 2.490% 109.841
05/01/2017 220.000 4.000% 2.720% 109.305
05/01/2018 230.000 5.000% 2.960% 116.256
05/01/2019 115,000 4.000% 3.220% 106.709
2.335,000
Dated Date
Delivery Date
First Coupon
Par Amount
Premium
Production
Undem/rlter's Discount
Purchase Price
Accrued Interest
Net Proceeds
03/04/2009
03/04~009
05/01~009
2.335.000.00
123,056.75
2.458.056.75
-20,000.00
2,438,056.75
2,438,056.75
105.270096%
-0.856531%
104.413565%
Feb 11 2009 10:49 am Prepared by Roosevelt & Cross. Inc. (c) (Finance 6.009 nys:R29899) Page 5
Period
Ending
BOND DEBT SERVICE
Town of Southold. New York
Refunding Bonds
REFUNDING OF 1998 BONDS (5/1/09-18)
REFUNDING OF 1999 BONDS (5/1/09-19)
(UNENHANCED); (NOT BANK QUALIFIED); (NON-CALLABLE)
Aa3 UNDERLYING
Annual
Principal Coupon Interest Debt Service Debt Service
05/01/2009 235.000 2.000% 11,305.00 246,305.00
11/01/2009 33,350.00 33,350.00
12/31/2009 279.655.00
05/01/2010 210.000 2.000% 33.350.09 243.350.00
1110112910 31.250.00 31.250.00
12/31/2010 274 600.00
05/01/2011 225.000 2.250% 31,250.00 256.250.00
11/01/2011 28,718.75 28.718.75
12/31/2011 284.968.75
05/01/2012 220.000 2.250% 28.718.75 248.718.75
11/01/2012 26,243.75 26.243.75
12/31/2012 274.962.50
05/01/2013 215.000 2.250% 26,243.75 241.243.75
11101/2013 23.825.00 23.825.00
12/31/2013 265,068.75
05/01/2014 220.000 2.250% 23.825.00 243,825.00
11/01/2014 21,350.00 21,350.00
12/31/2014 265.175.00
05101/2015 225.000 4.000% 21,350.00 246.350.00
11/01/2015 16,850.00 16.850.00
12/31/2015 263.200.00
05/01/2016 220.000 4.000¥~ 16.850.00 236.350.00
11/01/2016 12,450.00 12,450.00
12/31/2016 249 300.00
05/01/2017 220.000 4,000% 12,450.00 232,450.00
11/01/2017 8,050.00 8,050.00
12/31/2017 240,500,00
05/01/2018 230,000 5.000% 8,050,00 238 050.00
11/01/2018 2,300.00 2,300.00
12/31/2018 240.350.00
05/01/2019 115,000 4.000% 2,300,00 117,300,00
12/31/2019 117,300.00
2.335.000 420.080.00 2.755.050.00 2.755.080.00
Feb 11. 2009 10:49 am Prepared by Roosevelt & Cross, Inc. (c) (Finance 6.009 nys:R29899) Page 6
SUMMARY OF BONDS REFUNDED
Town of Southolc[. New York
Refunding Bonds
REFUNDING OF 1998 BONDS (5/1/09-18)
REFUNDING OF 1999 BONDS (5/1109-19)
(UNENHANCED); (NOT BANK QUALIFIED); (NON-CALLABLE)
Aa3 UNDERLYING
Maturity Interest Par Call
Bond Date Rate Amount Date
Call
Price
Agricultural Land Preservation Serial Bonds, 1998, 1998:
SERIALS 05/01/2009 4.850% 100,000.00 04103/2009 102.000
05/01/2010 4.850% 100.000.00 04103/2009 102.000
05/0112011 4.850% 110,000.00 04/03/2009 102.000
05/0112012 4.850% 110.000.00 04/03/2009 102.000
05/01/2013 4.850% 110,000.00 04/03/2009 102.000
05/01/2014 4.875% 110.000.00 04/03/2009 102.000
05/01/2015 4.875% 120.000.00 04/03/2009 102.000
05/01/2016 4.875% 120.000.00 04/03/2009 102.000
05/01/2017 4.875% 120.000.00 04/03/2009 102.000
05/01/2018 4.875% 120~000.00 04/03/2009 102.000
1,120,000.00
Open SPace Preservation Serial Bonds, 1999. 1999:
SERIALS 05/01/2009 4.700% 90,000.00
05/01/2010 4.700% 90,000.00 05/01/2009 102.000
05/01/2011 4.700% 100.000.00 05/01/2009 102.000
05/01/2012 4.700% 100.000.00 05/01/2009 102.000
05/01/2013 4.700% 100,000.00 05/01/2009 102.000
05/01/2014 4.700% 110,000.00 05/01/2009 102.000
05101/2015 4.700% 110,000.00 05/01/2009 102.000
05/01/2016 4.700% 110,000.00 05101/2009 102.009
05/01/2017 4.700% 110,000.00 05/01/2009 102.000
05101/2018 4.700% 120.D00.00 05/01/2009 102.000
05/0112019 4.700% 120,900.00 05/01/2009 102.000
1.160.000.00
2,280,000,00
Feb 11 2009 10:49 am Prepared by Roosevelt & Cross. Inc. (c) (Finance 6.009 nys:R29899) Page 7
ESCROW REQUIREMENTS
Town of Southol~.. New York
· Refunding Bonds
REFUNDING OF 1998 BONDS (5/1/09-18)
REFUNDING OF 1999 BONDS (5/1/09-19)
(UNENHANCED); (NOT BANK QUALIFIED); (NON-CALLABLE)
Aa3 UNDERLYING
Period Principal Redemption
Ending Principal Interest Redeemed Premium Total
04103/2009 22,997.39 1,120,000.00 22,400.00 1,165.397.39
05/01/2009 90,000.00 27,260.00 1,070,000.00 21.400.00 1,208.660.00
90,000.00 50,257.39 2,190,000.00 43,800.00 2,374.057.39
Feb 11. 2009 10:49 am Prepared by Roosevelt & Cross. Inc. (c) (Finance 6.009 nys:R29899) Page 8
ESCROW DESCRIPTIONS
Town of Southold, New York
Refunding Bonds
REFUNDING OF 1998 BONDS (5/1/09-18)
REFUNDING OF 1999 BONDS (5/1/09-19)
(UNENHANCED); (NOT BANK QUALIFIED); (NON-CALLABLE)
Aa3 UNDERLYING
Type of Type of Maturity First Int Par Max
Secudty SLGS Date Pmt Date Amount Rate Rate
Mar 4. 2009:
SLGS Certificate 04/03/2009 04/03/2009 1,165.177 0,230% 0.230%
SLG5 Certificate 05/01/2009 05/01/2009 1,208,218 0.230% 0.230%
2,373,395
SLGS Summary
SLGS Rates File
Total Certificates of Indebtedness
11FEB09
2,373,395.00
Feb 11 2009 10:49 am Prepared by Roosevelt & Cross. Inc. (c) (Finance 6,009 nys:R29899) Page 9
ESCROW SUFFICIENCY
Town of Southol¢ New York
Refunding Bonds
REFUNDING OF 1998 BONDS (5/1/09-18)
REFUNDING OF 1999 BONDS (5/1/09-19)
(UNENHANCED); (NOT BANK QUALIFIED); (NON-CALLABLE)
Aa3 UNDERLYING
Escrow Net Escrow Excess Excess
Date Requirement Receipts Receipts Balance
03/04/2009 20.54 20.54 20.54
04103/2009 1,165.397.39 1,165,397.27 -0.12 20.42
05/01/2009 1,208.660.00 1,208,659.58 -0.42 20.00
2,374,057.39 2,374,077.39 20.00
Feb 11. 2009 10:49 am Prepared by Roosevelt & Cross. Inc, (c) (Finance 6.009 nys:R29899) Page 10
ESCROW STATISTICS
Town of Southold, New York
Refunding Bonds
REFUNDING OF 1998 BONDS (5/1/09-18)
REFUNDING OF 1999 BONDS (5/1/09-19)
(UNENHANCED); (NOT BANK QUALIFIED); (NON-CALLABLE)'
Aa3 UNDERLYING
Modified Yield to Yield to Perfect Value of
Total Duration Receipt Disbursement Escrow Negative Cost of
Escrow Escrow Cost (years) Date Date Cost Arbitrage Dead Time
REFUNDING BONDS. Global Proceeds Escrow:
1,165,187.12 0.080 0.234791% 0.234791% 1,163,118.25 2.068.85 0.02
1,208,228.42 ' 0.158 0.230921% 0.230921% 1,204,008.06 4.220.32 0.04
2,373,415.54 2.367.126.31 6,289.17 0.06
Delivery date 03/04/2009
Arbitrage yield 2.455716%
Feb 11, 2009 10:49 am Prepared by Roosevelt & Cross, Inc. (c) (Finance 6.009 nys:R29899) Page 11
Period
Ending
PRIOR BOND DEBT SERVICE
Town of Southold. New York
Refunding Bonds
REFUNDING OF 1998 BONDS (5/1/09-18)
REFUNDING OF 1999 BONDS (5/1/09-19)
(UNENHANCED); (NOT BANK QUALIFIED); (NON-CALLABLE)
Aa3 UNDERLYING
Annual
Principal Coupon Interest Debt Service Debt Service
05/01/2009 190,000 54,493.75 244.493.75
11/01/2009 49,953.75 49.953.75
12/31/2009 294,447.50
05/01/2010 190.000 " 49,953.75 239,953.75
11/01/2010 45.413.75 45.413.75
1213112010 285,367.50
05/01/2011 210,000 " 45.413.75 255,413.75
11/01/2011 40,396.25 40.396.25
12/3112011 295,810.00
05/0t/2012 210,000 " 40,396.25 250.396.25
1110112012 35.378.75 35.378.75
12131/2012 285.775.00
05/01/2013 210,000 " 35.378.75 245.378~75
11/01/2013 30,361.25 30.361.25
12/31/20~ 3 275,740.00
05/01/2014 220,000 " 30,361.25 250,381.25
11101/2014 25,095.00 25,095.00
12/31/2014 275.456.25
05/01/2015 230.000 " 25,095.00 255,095.00
11/01/2015 19,585.00 19,585.00
12/31/2015 274,$80.00
05/01/2016 230,000 19.585.00 249,585.00
11/01/2016 14.075.00 14,075.00
12/31/2016 263.660.00
05/01/2017 230,000 14,075.00 244,075.00
11/01/2017 8,565.00 8.565.00
12/31/2017 252,640.00
05/01/2018 240.000 ** 8,565.00 248.565.00
11/01/2018 2,820.00 2.820.00
12/31/2018 251,385.00
05/01/2019 120.000 4.700% 2,820.00 122,820.00
12/31/2019 122.820.00
2.280,000 597,781.25 2.877,781.25 2,877.781.25
Feb 11. 2009 10:49 am Prepared by Roosevelt & Cross. Inc. lc) (Finance 6.009 nys:R29899) Page 12
BOND SUMMARY STATISTICS
Town of Southold, New York
Refunding Bonds
REFUNDING OF 1998 BONDS (5/1/09-18)
REFUNDING OF 1999 BONDS (5/1/09-19)
(UNENHANCED); (NOT BANK QUALIFIED); (NON-CALLABLE)
~,a3 UNDERLYING
Dated Date 03/04/2009
Delivery Date 03/04/2009
Last Maturity 05/01/2019
Arbitrage Yield
True Interest Cost (TIC)
Net Interest Cost (NIC)
All-ln TIC
Average Coupon
2.455716%
2.637296%
2.752008%
3.196107%
3.646620%
Average Life (years)
Duration of Issue (years)
4.933
4.549
Par Amount
Bond Proceeds
Total Interest
Net Interest
Total Debt Service
Maximum Annual Debt Service
Average Annual De_bt Service
2,335,000.00
2.458,056.75
420,080.00
317.023.25
2,755,080.00
284,968,75
271,213.78
Underwriter's Fees (per $1000)
Average Takedown
Other Fee
8.565310
Total Underwriter's Discount
8.565310
Bid Price 104.413565
Par Average Average
Bond Component Value Price Coupon Life
Serial Bonds 2,335,000.00 105.270 3.647% 4.933
2.335,000.00 4.933
Par Value
+ Accrued Interest
+ Premium [Discount)
- Underwriter's Discount
- Cost of Issuance Expense
- Other Amounts
Ail-In Arbitrage
TIC TIC Yield
2,335,000.00
123,056.75
-20,000.00
2,335,000.00
123,056.75
-20.000.00
-60.000.00
2,335,000.00
123.056.75
Target Value 2,438,056.75 2,378.056.75 2,458,056.75
Target Date 03/04/2009 03/04/2009 03/04/2009
Yield 2.637296% 3.196107% 2.455716%
Feb 11, 2009 10:49 am Prepared by Roosevelt & Cross, Inc. (c) (Finance 6.009 nys:R29899) Page 13
SOURCESAND USES OFFUNDS
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05101/1998 BONDS (05/01/2009 - 2018)
Dated Date 03/04/2009
Delivery Date 03/04/2009
Sources:
Bond Proceeds:
Par Amount 1,148.000.00
Premium 59.161.91
1,207,161.91
Uses:
Refunding Escrow Deposits:
Cash Deposit
SLGS Purchases
Delivery Date Expenses:
Cost of issuance
Underwriter's Discount
Other Uses of Funds:
Additional Proceeds
10.12
1,165,177.00
1.165,187.12
29.498.93
9,832.98
39,331.91
2,642.88
1,207,161.91
Feb 11. 2009 10:49 am Prepared by Roosevelt & Cross. Inc. (c) (Finance 6.009 nys:R29899) Page 14
SUMMARY OF REFUNDING RESULTS
Town of SoutholcL, New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (05/01/2009 - 2018)
Dated Date
Delivery Date
Arbitrage yield
Escrow yiel¢
Bond Par Amount
True Interest Cost
Net Interest Cost
Ail-In TiC
Average Coupon
Average Life
Par amount of refunded bonds
Average coupon of refunded bonds
Average life of refunded bonds
PV ~)f prior debt to 03/04/2009 @ 2.455716%
Net PV Savings
Percentage savings of refunded bonds
Percentage savings of refunding bonds
03/04/2009
03/04/2009
2,455716%
0.234791%
1,148,000.00
2.562199%
2.672917%
3.153365%
3.600716%
4,631
1,120,000.00
4.869583%
4.837
1,258,774.66
58,652.46
5.236827%
5.109099%
Feb 14,2009 10:49 am Prepared by Roosevelt & Cross, Inc. (c) (Finance 6.009 nys:R29899) Page 15
Date
SAVINGS
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (05/01/2009- 2018)
Present Value
Prior Refunding ~. Annual to 0310412009
Debt Service Debt Service Savings Savings @ 2.4557162%
05/01/2009
11101/2009
12/31/2009
05/01/2010
11/01/2010
12/31/2010
05/01/2011
11/01/2011
12/31/2011
05/01/2012
11/01/2012
1213112012
05/01/2013
11/01/2013
12/31/2013
05/01/2014
11/01/2014
12/31/2014
05/01/2015
11/01/2015
12131/2015
05/0112016
11/01/2016
12/31/2016
05/01/2017
11/01/2017
12/31/2017
05/01/2018
12/31/2018
127,233.75 128,454.19 -1,220.44 -1,215.73
24,808.75 15,993.75 8,815.00 8,674.49
7,594.56
124,808.75 125.993.75 -1,185.00 -1.151.97
22.383.75 14,893.75 7.490.00 7.192.89
6,305.00
132,383.75 134.893.75 -2.510.00 -2.381.20
19,715.25 13.543.75 6.172.50 5,784.72
3,862.50
129.716.25 128.543.75 1.172.50 1,085.51
17,048.75 12.250.00 4.798.75 4.388.84
5.971.25
127.048.75 122.250.00 4.798.75 4.335.60
14,381.25 11.012.50 3,368.75 3.006.70
8.167.50
124.381.25 121 .D12.50 3.368.75 2,970.23
11,700.00 9.775.00 1.925.00 1,676.69
5,293.75
131,700.00 124.775.00 6.925.00 5.958.55
8.775.00 7.475.00 1.300.00 1.105.01
8,225.00
128,775.00 122.475.00 6,300.00 5,290.07
5,850.00 5, 175.00 675.00 559.92
6.975.00
125,850.00 120 175.00 5.675.00 4,650.36
2.925.00 2.875.00 50.00 40.48
5,725.00
122.925.00 117.875.00 5.050.00 4.038.43
5.050.00
1,402,411.25 1,339.441.69 62,969.56 62,969.56 56.009.58
Savinos Summaw
PV of savings from cash flow
Plus: Refunding funds on hand
56,009.58
2.642.88
Net PV Savings 58.652.46
Feb 11. 2009 10:49 am Prepared by Roosevelt & Cross. Inc. (c) (Finance 6.009 nys:R29899) Page 16
Period
Ending
BOND DEBT SERVICE
Town of Sbuthol(t, New York
REFUNDING BONDS
REFUNDING OF 05/01/'[998 BONDS (05/01/2009 - 2018)
Principal Couoon
Interest Debt Service
Debt Service
05/0112009 123.000 2.000% 5.454.19 128.454.19
11/01/2009 15,993.75 15.993.75
12/31/2009 144,447.94
05/01/2010 110.000 2.000% 15,993.75 125.993.75
11/01/2010 14.893.75 14.893.75
12/31/2010 140,887.50
0510112011 120.000 2.250% 14,893.75 134.893.75
11/0112011 13.543.75 13,543.75
12/31/2011 148.437.50
05/01/2012 115,000 2.250% 13.543.75 128.543.75
11/01/2012 12.250.00 12.250.00
12/31/2012 140.793.75
05/01/2013 110.000 2.250% 12,250.00 122.250.00
11/01/2013 11.012.50 11.012.50
12/31/2013 133.262.50
05101/2014 110,000 2.250% 11.012.50 121,012.50
11/01/2014 9.775.00 9.775.00
12/31/2014 130.787.50
05/01/2015 115,000 4.000% 9,775.00 124,775.00
11/01/2015 7.475.00 7,475.00
12/31/2015 132.250.00
05/01/2016 115.000 4.000% 7.475.00 122.475.00
11101/2016 5.175.00 5.175.00
1 2/31/2016 127,650.00
05/01/2017 115.000 4.000% 5,175.00 120.175.00
11/01/2017 2.875.00 2.875.00
12/31/2017 123.050.00
05/01/2018 115.000 5.000% 2.875.00 117,875.00
1 2/31/2018 117.875.00
1.148.000 191.441.69 1.339,441.69 1.339.441.69
Feb 11. 2009 10:49 am Prepared by Roosevelt & Cross. Inc. (c) (Finance 6.009 nys:R29899) Page 17
Bond Component,~
BOND PRICING
Town of Southol(~, New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (05/01/2009 - 2018)
Maturity
Date Amount Rate Yield
Pdce
Serial Bonds:
05/01/2009 123,000 2.000% 1.000% 100.157
05/01/2010 110.000 2.000% 1,150% 100,974
05/01/2011 120,000 2.250% 1,550% 101.479
05/01/2012 115,000 2.250% 1,690% 101.714
05/0112013 110,000 2,250% 1,860% 101.552
05/01/2014 110,000 2.250% 2.130% 100,581
05/01/2015 115,000 4.000% 2.310% 109.646
05/01/2016 115,000 4.000% 2,490% 109.841
05/01/2017 115,000 4.000% 2,720% 109.305
05/01/2018 115,000 5.000% 2.960% 116.256
1,148,000
Dated Date
Delivery Date
First Coupon
Par Amount
Premium
Production
Underwriter's Discount
Purchase Price
Accrued Interest
Net Proceeds
03/04/2009
03/04/2009
- 05/01/2009
1,148,000.00
59,161.91
1.207,181.91
-9,832.98
1.197.328.93
1.197,328.93
105.153476%
-0.856531%
104.296945%
Feb 11. 2009 10:49 am Prepared by Roosevelt & Cross. Inc. (c) (Finance 6.009 nys:R29899) Page 18
Bond
SUMMARY OF BONDS REFUNDED
Town of Southold. New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (05/01/2009 - 2018)
Maturity Interest Par Call
Date Rate Amount Date
Call
Price
Agricultural Land Preservation Sedal Bonds, 1998, 1998:
SERIALS 05/0112009 4.850% 100.000.00 04/03/2009 102.000
05/01/2010 4.850% 100.000.00 04/03/2009 102.000
05/01/2011 4.850% 110,000.00 04/03~2009 102.000
05/01/2012 4.850% 110.000.00 0410312009 102.000
05/01/2013 4.850% 110.000.00 04103/2009 102.000
05/01/2014 4.875% 110.000.00 04/03/2009 102.000
05/01/2015 4.875% 120.000.00 04/03/2009 102.000
05/01/2016 4.875% 120.000.00 04/03/2009 102.000
05/01/2017 4.875% 120.000.00 04/03/2009 102.000
05/01/2018 4.875% 120,000.00 04/03/2009 102.000
1.120,000.00
Feb 11, 2009 10:49 am Prepared by Roosevelt & Cross, Inc. (c) (Finance 6.009 nys:R29899) Page 19
Period
Ending
PRIOR BOND DEBT SERVICE
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05101/1998 BONDS (05/01/2009- 2018)
Annual
Principal Coupon Interest Debt Service Debt Service
05/01/2009 I00.000 4.850% 27.233.75 127.233.75
11/01/2009 24,808.75 24,808.75
12/31/2009 152.042.50
05101/2010 100.D00 4.850% 24,808.75 124.808.75
11/01/2010 22.383.75 22.383.75
12/31/2010 147.192.50
05/01/2011 110.000 4.850% 22.383.75 132.383.75
1 II01/2011 19.716.25 19,716.25
12131/2011 152,100.00
05/01/2012 110.000 4.850% 19.716.25 129.716.25
11/01/2012 17.048.75 17.048.75
12/31/2012 146,765.00
05/01/2013 110.000 4.850% 17.048.75 127.948.75
11/01/2013 14.381.25 14.381.25
12/31/2013 141,430.00
05/01/2014 110.000 4.875% 14.381.25 124,381.25
11101/2014 11,700.00 11.700.00
12/31/2014 136.081.25
05/01/2015 120.000 4.875% 11.700.00 131,700.00
11/0112015 8,775.00 8,775.00
12/31/2015 140.475.00
05/01/2016 120.000 4.875% 8,775.00 128.775.00
11/01/2016 5.850.00 5,850.00
12/31/2016 134,625.00
05/01/2017 120.000 4.875% 5,850.00 125,650.00
11/01/2017 2,925.00 2.925.00
12/31/2017 128,775.00
05/01/2018 120.000 4.875% 2.925.00 122.925.00
12/31/2018 122,925.00
1.120,000 282.411:25 1.402.411.25 1,402,411.25
Feb 11. 2009 10:49 am Prepared by Roosevelt & Cross, Inc. (c) (Finance 6~009 nys:R29899) Page 20
Date
AGGREGATE DEBT SERVICE
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1998 BONDS (05/0112009 - 2018)
REFUNDING REFUNDING
BONDS ~_ BONDS Aggregate Aggregate
Principal Interest Principal interest
Aggregate
Debt Service
05~01/2009 123,000 5.454.19 123,000 5,454.19 128,454.19
11/01/2009 15.993,75 15,993.75 15.993.75
05/01/2010 110.000 15.993,75 110.000 15.993.75 125,993.75
11/0t/2010 14.893.75 14,893.75 14,893.75
05/01/2011 120.000 14.893.75 120.000 14,893.75 134,893.75
11/01/2011 13,543.75 13.543.75 13.543.75
05/01/2012 115.000 13.543.75 115,000 13,543.75 128,543.75
11/01/2012 12.250.00 12.250,00 12,250,00
05/01/2013 110,000 12.250.00 110. 000 12.250.00 122.250.00
11/01/2013 11,012.50 11,012.50 11,012.50
05/01/2014 110.000 11,012.50 110,000 11.012.50 121.012.50
11/01/2014 9,775.00 9,775.00 9,775,00
05101/2015 115,000 9,775.00 115,000 9.775.00 124,775.00
11101/2015 7,475,00 7.475,00 7.475.00
05/01/2016 115,000 7,475.00 115,000 7,475.00 122,475,00
11/01/2016 5.175.00 5.175.00 5,175.00
05/01/2017 115.000 5.175.00 115,000 5.175,00 120,175,00
11/01/2017 2.875.00 2,875.00 2,875,00
05/01/2018 115,000 2.875.00 115.000 2,875.00 117.875.00
1,148,000 191.441.69 1,148,000 191.441.69 1,339,441.69
Feb 11 2009 10:49 am Prepared by Roosevelt & Cross, Inc. (c) (Finance 6.009 nys:R29899) Page 21
SOURCESAND USES OFFUNDS
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1999 BONDS (05/01/2009 - 2019)
Dated Date 03/04/2009
Delivery Date 03/04/2009
Sources:
Bond Proceeds:
Par Amount 1.187,000.00
Premium 63,894.84
1,250,894.84
Uses:
Refunding Escrow Deposits:
Cash Deposit
SLGS Purchases
Delivery Date Expenses:
Cost of Issuance
Underwriter's Discount
Other Uses of Funds:
Additional Proceeds
10.42
1,208.218.00
1.208.228.42
30.501.07
10,167.02
40.668.09
1.998.33
1,250,894.84
Feb 11 2009 10:49 am Pre0ared by Roosevelt & Cross. Inc. (c) (Finance 6.009 nys:R29899) Page 22
SUMMARY OF REFUNDING RESULTS
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05101/1999 BONDS (0510112009 - 2019)
Dated Date
Delivery Date
Arbitrage yield
Escrow yield
Bond Par Amount
True Interest Cost
Net Interest Cost
All-In TIC
Average Coupon
Average Life
Par amount of refunded bonds
Average coupon of refunded bonds
Average life of refunded bonds
PV of prior debt to 03/04/2009 ~ 2.455716%
Net PV Savings
Percentage savings of refunded bonds
Pementage savings of refunding bonds
03/04/2009
03~04~2009
2.455716%
0.230921%
1,187,000.00
2.702228%
2.819799%
3,233117%
3.685966%
5,226
1,160,000.00
4.700000%
5.443
1,307,731.23
54,437.89
4.692922%
4.586174%
Feb 11. 2009 10:49 am Prepared by Roosevelt & Cross. Inc. (c) (Finance 6.009 nys:R29899) Page 23
Date
SAVINGS
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1999 BONDS (05/01/2009 - 2019)
Present Value
Prior Refunding Annual to 03/04/2009
Debt Service Debt Service Savings Savings @ 2,4557162%
05/01/2009
11/01/2009
12/31/2009
05/01/2010
11/0112010
12/31/2010
05/01/2011
11/01/2011
12/31/2011
05/01/2012
11/01/2012
12/31/2012
05/01/2013
11/01/2013
12/31/2013
05/01/2014
11/01/2014
12/31/2014
05/01/2015
11101/2015
12/31/2015
05101/2016
11101/2016
12/3112016
05/01/2017
11/01/2017
12/31/2017
05/01/2018
11/01/2018
12/31/2018
0510112019
12/31/2019
117.260.00 117.850.81 -590.81 -588.53
25.145.00 17,356.25 7,788.75 7.664.60
7,197.94
115,145.00 117.356.25 -2,211.25 -2.149.61
23.030.00 16.356.25 6.673.75 6,409.02
4.462.50
123,030.00 121.356.25 1,673.75 1.587.86
20,680.00 15,175.00 5,505.00 5,159.16
7,178.75
120,680.00 120.175.00 505.00 467.53
18,330.00 13.993.75 4,336.25 3.965.84
4,841.25
118.330.00 118,993.75 -663.75 -599.69
15.980.00 12.812.50 3.167.50 2.827.08
2.503.75
125.980.00 122.812.50 3.167.50 2,792.79
13.395.00 11.575.00 1,820.00 1,585.23
4.987.50
123.395.00 121,575.00 1.520.00 1.566.00
10.810.00 9.375.b0 1,435.00 1.219.76
3,255.00
120,810.00 114.375.00 6,435.00 5.403.43
8,225.00 7.275.00 950.00 788.03
7,385.00
118.225.O0 112,275.00 5,950.00 4,875.71
5,640.00 5,175.00 465.00 376.42
6.415.00
125,640.00 120,175.00 5.465.00 4,370.30
2.820.00 2,300.00 520.00 410.79
5.985.00
122.820.00 117,300.00 5.520.00 4.307.84
5,520.00
1.475,370.00 1.415,638.31 59,731.69 59,731.69 52,439.56
Savin(~s Summary
PV of savings from cash flow
Plus: Refunding funds on hand
52.439.56
1.998.33
Net PV Savings 54,437.89
Feb 11 2009 10:49 am Prepared by Roosevelt & Cross. Inc. (c) (Finance 6.009 nys:R29899) Page 24
Period
Ending
BOND DEBT SERVICE
Town of Southold. New York
REFUNDING BONDS
REFUNDING OF 05/01/1999 BONDS ,~05/01/2009 - 2019)
Principal Coupon
Interest Debt Service
Annual
Debt Service
05/01/2009 112.000 2.000% 5,850.81 117.850.81
11/01/2009 17,356.25 17,356.25
12/31/2009 135.207.06
05/01/2010 100.000 2.000% 17.356.25 117,356.25
11/01/2010 16.356.25 16,356.25
12/31/2010 133.712.50
05/01/2011 105.000 2.250% 16,356.25 121.356.25
11/01/2011 15,175.00 15.175.00
12/31/2011 136,531.25
05/01/2012 105.000 2.250% 15,175.00 120, 175.00
11/01/2012 13.993.75 13,993.75
12/31/2012 134,168.75
05/01/2013 105,000 2.250% 13.993.75 118.993.75
11/01/2013 12.812.50 12,812.50
12/31/2013 131.B06.25
05/01/2014 110.000 2.250% 12.812.50 122,812.50
11/01/2014 11.575.00 11,575.00
12131/2014 134.387.50
05/01/2015 110.000 4.000% 11.575.00 121.575.00
11/01/201 5 9,375.00 9.375.00
12/3112015 130,950.00
05/01/2016 105,000 4.000% 9.375.00 114,375.00
11/01/2016 7,275.00 7.275.00
12/31/2016 121.650.00
05/01/2017 105.000 4.000% 7,275.00 112.275.00
11/01/2017 5.175.00 5.175.00
12/31/2017 117,450.00
05/01/2018 115.000 5.000% 5.175.00 120,175.00
11/0112018 2.300.00 2,300.00
12/31/2018 122.475.00
05~01/2019 115.000 4.000% 2,300.00 117.300.00
12/31/2019 117,300.00
1,187.000 228,638.31 1,415.638.31 1,415.638.31
Feb 11. 2009 10:49 am Prepared by Roosevelt & Cross, Inc. (c) (Finance 6.009 nys:R29899) Page 25
E~ond Compor~nt
BOND PRICING
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1999 BONDS (05/01/2009 - 2019)
Maturity
Date Amount F~ate Yiel(~
Price
Serial Bonds:
05101/2009 112.000 2,000% 1.000% 100.157
05/01/2010 100,000 2.000% 1.150% 100.974
05/01/2011 105,000 2.250% 1.550% 101.479
05/01/2012 105,000 2.250% 1.690% 101.714
05/01/2013 105,000 2.250% 1.860% 101.552
05/01/2014 110,000 2.250% 2.130% 100,581
05/01/2015 110.000 4.000% 2.310% 109.646
05/01/2016 105,000 4.000% 2.490% 109,841
05/0112017 105.000 4.000% 2.720% 109.305
05/01/2018 116,000 5.000% 2,960% 116.256
05/01/2019 115,000 4.000% 3.220% 106.709
1.187.000
Dated Date
Delivery Date
First Coupon
Par Amount
Premium
Production
Underwriter's Discount
Purchase Price
Accrued Interest
Net Proceeds
03104/2009
03/0412009
05101/2009
1.187.000.00
63.894,84
1.250,894.84
-10~ 167.02
1.240.727.82
1,240.727.82
105.382885%
-0.856531%
104.526354%
Feb 11, 2009 10:49 am Prepared by Roosevelt & Cross, Inc, (c) (Finance 6.009 nys:R29899) Page 26
Bon(~
SUMMARY OF BONDS REFUNDED
Town of Southold. New York
REFUNDING BONDS
REFUNDING OF 05/0111999 BONDS (05/01/2009 - 2019)
Matudty Interest Par Call
Date Rate Amount Date
Call
Price
Open Space Preservation Serial Bonds, 1999, 1999:
SERIALS 05/01/2009 4,700% 90~000.00
05/01/2010 4.700% 90,000.00 05/01/2009 102.000
05/01/2011 4.700% 100,000.00 05/01/2009 102,000
05/01/2012 4.700% 100,000.00 05/01/2009 102.000
05101/2013 4.700% 100,000.00 05/01/2009 102.000
05/01/2014 4.700% 110.000.00 05/01/2009 102.000
05/01/2015 4.700% 110.000.00 05/01/2009 102.000
05/01/2016 4.700% 110,000.00 05/01/2009 102.000
05/01/2017 4.700% 110.000.00 05/01/2009 102.000
05/01/2018 4,700% 120,000.00 05/01/2009 102.000
05/01/2019 4.700% 120.000.00 05/01/2009 102.000
1,160,000.00
Feb 11 2009 10:49 am Prepared by Roosevelt & Cross. Inc. lc) (Finance 6.009 nys:R29899) Page 27
Period
Ending
PRIOR BOND DEBT SERVICE
Town of Southold, New York
REFUNDING BONDS
REFUNDING OF 05/01/1999 BONDS I05/01/2009 - 2019)
Annual
DeM Debt
Principal Coupon Interest Sewice Se~ice
05/01/2009 90.000 4.700% 27.260 117,260
11/01/2009 25,145 25.145
12/31/2009 142.405
05/01/2010 90.000 4.700% 25.145 115.145
11/01/2010 23,030 23.030
12/31/2010 138,175
05/01/2011 100,000 4.700% 23,030 123.030
11/01/2011 20,680 20.680
12/31/2011 143,710
05/01/2012 100,000 4.700% 20.680 120.680
11/01/2012 18,330 18.330
12/31/2012 139,010
05/01/2013 100,000 4.700% 18.330 118.330
11/01/2013 15.980 15.980
12/31/2013 134.310
05/0112014 110,000 4.700% 15.980 125.980
11/01/2014 13.395 13.395
12/31/2014 139,375
05/01/2015 110,000 4.700% 13.395 123,395
11/01/2015- 10.810 10.810
12/3112015 134,205
05/01/2016 110,000 4.700% 10,810 120.810
11/01/2016 8.225 8,225
12/3112016 129.035
05/01/2017 110.000 4.700% 8.225 118.225
11/01/2017 5.640 5.640
12/3112017 123.865
05/0112018 12(~.000 4.700% 5.640 125.640
11/01/2018 2.820 2,820
12/31/2018 128.460
05/01/2019 120.000 4.700% 2.820 122,820
12/31/2019 122.820
1,160,000 315,370 1.475.370 1,475,370
Feb 11. 2009 10:49 am Prepared by Roosevelt & Cross, Inc. Ic) (Finance 6:009 nys:R29899) Page 28
Date
AGGREGATE DEBT SERVICE
Town of Southold. New York
REFUNDING BONDS
REFUNDING OF 05/01/1999 BONDS (05/01/2009 - 2019)
REFUNDING REFUNDING
BONDS ~ BONDS Aggregate Aggregate Aggregate
Principal Interest Principal Interest Debt Sen/ice
05/01/2009 112,000 5.850.81 112,000 5.850.81 117,850.81
11/01/2009 17,356.25 17,356.25 17.356.25
05/01/2010 100,000 17.356.25 100,000 17,356.25 117.356.25
11101/2010 16.356.25 16.356.25 16.356.25
05/01/2011 105.000 16,356.25 105.000 16.356.25 121.356.25
11/01/2011 15 175.00 15.175.00 15.175.00
05/01/2012 105,000 15 175.00 105,000 15,175.00 120.175.00
11/01/2012 13.993.75 13.993.75 13,993.75
05101/2013 105.000 13,993.75 105.000 13.993.75 118.993.75
11/01/2013 12.812.50 12.812.50 12,812.50
05/01/2014 110.000 12.812.50 110.000 12.812.50 122.812.50
11/01/2014 11.575.00 11,575.00 11.575.00
05/01/2015 110.000 11.575.00 110.000 11,575.00 121.575.00
11/0112015 9.375.00 9.375.00 9.375.00
05/0112016 105,000 9.375.00 105.000 9.375.00 114.375.00
11/01/2016 7.275.00 7.275.00 7,275.00
05/01/2017 105.000 7.275.00 105.000 7,275.00 112.275.00
11/01/2017 5,175.00 5.175.00 5,175.00
05/01/2018 115.000 5.175.00 115.000 5,175.00 120.175.00
11/01/2018 2.300.00 2,300.00 2,300.00
05101/2019 115.000 2,300.00 115,000 2,300.00 117.300.00
1,187.000 228.638.31 1,187.000 228.638.31 1.415.638.31
Feb 11. 2009 10:49 am Prepared by Roosevelt & CrOss. Inc. (c) (Finance 6.009 nys:R29899) Page 29
EIC
Date Cashflow
Present Value
to 03/04/2009
@ 2.4557162%
05/01/2009 246.305.00 245,354.98
11101/2009 33,350.00 32.,818.40
05/01/2010 243,350.00 236,566.32
11/01/2010 31,250.00 30,010.38
05/01/2011 256.250.00 243,100.21
11/01/2011 28.718.75 26,914.54
05/01/2012 248,718.75 230,266.04
11/01/2012 26,243.75 24,001.99
05/01/2013 241.243.75 217,960.27
11/01/2013 23,825.00 21.264.45
05/01/2014 243,825.00 214,980.67
11/01/2014 21,350.00 18,595.98
05/01/2015 246.350.00 211,969.63
11/01/2015 16,850.00 14,322.57
05/01/2016 236,850.00 198.881.49
11/01/2016 12,450.00 10,327.38
05/01/2017 232.450.00 190.480.46
11/01/2017 8,050.00 6,516.53
05/01/2018 238 050.00 1.90.365.82
11/01/2018 2.300.00 1.816.97
05/01/2019 117 300.00 91.541.65
2.755.080.00 2,458,056.75
Valuation date
Amount
Target for yield calculation
Summary
03/04/2009
2.458.056.75
2,458~056.75
Feb 11 2009 10:25 am Prepared by Roosevelt & Cross, Inc. (c) (Finance 6.009 ) Page 1
LEGAL NOTICE
The resolution, a summary of which is published herewith, has been
adopted on the 24th day of February, 2009 and the validity of the obligations authorized
by such resolution may be hereafter contested only if such obligations were authorized
for an object or purpose for which the Town of Southold, in the County of Suffolk, New
York, is not authorized to expend money or if the provisions of law which should have
been complied with as of the date of publication of this Notice were not substantially
complied with, and an action, suit or proceeding contesting such validity is commenced
within twenty days after the publication of this Notice, or such obligations were
authorized in violation of the provisions of the constitution.
BY ORDER OF THE TOWN BOARD OF THE TOWN OF SOUTHOLD
DATED: February 24, 2009
Southold, New York
EliZabeth A. Neville
Town Clerk
REFUNDING BOND RESOLUTION OF THE TOWN OF
SOUTHOLD, NEW YORK, ADOPTED FEBRUARY 24, 2009,
AUTHORIZING THE REFUNDING OF CERTAIN
OUTSTANDING SERIAL BONDS OF SAID TOWN, STATING
THE PLAN OF REFUNDING, APPROPRIATING AN
AMOUNT NOT TO EXCEED $3,000,000 FOR SUCH
PURPOSE, AUTHORIZING THE ISSUANCE OF NOT TO
EXCEED $3,000,000 REFUNDING BONDS TO FINANCE
SAID APPROPRIATION, AND MAKING CERTAIN OTHER
DETERMINATIONS RELATIVE THERETO.
The object or purpose is to refund of all or a portion of certain outstanding serial bonds of
the Town issued in 1998 and 1999 for open Space and agricultural land preservation.
The period of probable usefulness for which the 1998 and 199 bonds were issued is thirty
(30) years, commencing on the date of original issuance of the first bonds or bond
anticipation notes issued for the respective purposes for which the outstanding bondg
were issued.
The mount of obligations to be Issued is not to exceed $3,000,000
A complete copy of the Bond Resolution summarized above shall be available for public
inspection during normal business hours at the office of the Town Clerk, Town Hall,
53095 Main Road, Southold, New York.
BY ORDER OF THE TOWN BOARD
OF THE TOWN OF SOUTHOLD
Dated: February 24, 2009
Southold, New York
ELIZABETH A. NEVILLE
Town Clerk
PLEASE PUBLISH ON March 12, 2009, AND FORWARD THREE (3)
AFFIDAVITS OF PUBLICATION TO ELIZABETH A. NEVILLE, TOWN
CLERK, TOWN HALL, P.O. BOX 1179, SOUTHOLD, NY 11971
Copies to the following:
Suffolk Times
Town Attorney
Bond Council
Town Board Members
Accounting
Town Clerk's Bulletin Board
DELAFIELD <~WOOD LLP
February 20, 2009
Town of Southold, New York
Refunding Serial Bonds-2009
(Our File Designation: (2615/
Mr. John Cushman
Town Comptroller
Town of Southold
54375 Main Road
Southold, New York 11971
Dear John:
As requested, we have prepared and ef~close herewith the draft Extract of Minutes
setting forth the Refunding Bond Resolution for the above referenced matter for consideration by
the Town Board at its meeting scheduled for February 24, 2009. Please note that the
Refunding Bond Resolution is to be adopted by at least a two-thirds vote of the entire
membership of the Town Board.
We are also enclosing a summary form of the Refunding Bond Resolution with
the prescribed form of Clerk's statutory notice affixed in readiness for publication in the official
newspapers of the Town. As you know, that publication of the Refunding Bond Resolution, in
summary, together with such statutory form of notice, commences a 20-day statute of limitations
pursuant to the provisions of Section 80.00 et seq. of the Local Finance Law.
558370.1001098RES
Kindly obtain and forward to us two (2) certified copies of the Extract of Minutes
and original Affidavits of Publication from the Town's official newspapers, when available. One
(1) original copy of the Extract is to be retained by the Town Clerk and a second should be
retained in your office.
Please ensure that the final proposed refunding financial plan is inserted as
Exhibit A to the refunding bond resolution, which must appear, or be included by
reference, in the Official Minutes of the meeting..
558370.1 001098 RES
With best regards, I remain
Very truly yours,
WJJ:eml
Enclosures
Robert. P Smith
558370.1 001098 RES
EXTRACT OF MINUTES
Meeting of the Town Board of the Town of Southold,
in the County of Suffolk, New York
February 24, 2009
A regular meeting of the Town Board of the Town of Southold, in the County of
Suffolk, New York, was held at the Town Hall, 53095 Main Road, Southold, New York, on
February 24, 2009.
There were present:
Board Members:
Scott A. Russell, Supervisor; and
Councilman Albert Krupski, Jr
Councilman Vincent Orlando
Councilman William Ruland
Councilman Thomas Wickham
Justice Louisa Evans
There were absent:
None
Also present:
Elizabeth A. Neville, Town Clerk
Councilman Vincent Orlando offered the following resolution and moved its adoption:
REFUNDING BOND RESOLUTION OF THE TOWN OF
SOUTHOLD, NEW YORK, ADOPTED FEBRUARY 24, 2009,
AUTHORIZING THE REFUNDING OF CERTAIN
OUTSTANDING SERIAL BONDS OF SAID TOWN,
558370.1 001098 RES
STATING THE PLAN OF REFUNDING, APPROPRIATING
AN AMOUNT NOT TO EXCEED $3,000,000 FOR SUCH
PURPOSE, AUTHORIZING THE ISSUANCE OF NOT TO
EXCEED $3,000,000 REFUNDING BONDS TO FINANCE
SAID APPROPRIATION, AND MAKING CERTAIN OTHER
DETERMINATIONS RELATIVE THERETO.
Recitals
WHEREAS, the Town of Southold, in the County of Suffolk, New York (herein
called the "Town"), has heretofore issued on May 19, 1998 its $2,000,000 Agricultural Land
Preservation Serial Bonds~1998 (the "1998 Bonds"), which are currently outstanding in the
principal amount of $1,120,000 (the "Outstanding 1998 Bonds"), which shall mature on May 1
in each of the years and in the principal amounts and bear interest payable semiannually on May
1 and November 1 in each year to maturity, as follows:
Year of Principal Interest
Maturity Amount Rate
2009 $100,000 4.85%
2010 100,000 4.85
2011 110,000 4.85
2012 110,000 4.85
2013 110,000 4.85
2014 110,000 4-7/8
2015 120,000 4-7/8
2016 120,000 4-7/8
2017 $120,000 4-7/8%
2018 120,000 4-7/8
WHEREAS, the 1998 Bonds maturing on or after May 1, 2009 are subject to
redemption prior to maturity, at the option of the Town, on May I, 2008 and thereafter on any
date, in whole or in part, in inverse order or maturity or in equal proportionate amounts (selected
558370.1001098RES
by lot within a maturity), at the following redemption prices, plus accrued interest to the date of
redemption:
Redemption Dates
(all dates inclusive)
Redemption Prices
(Percentages of Principal Amount)
May 1,2008 to April 30, 2009
May 1, 2009 to April 30, 2010
May 1, 2010 and thereafter
102%
101
100
WHEREAS, on May 18, 1999 the Town issued its $1,900,000 Open Space
Preservation Serial Bonds-1999 (the "1999 Bonds"), which are currently outstanding in the
principal amount of $1,160,000 (the "Outstanding 1999 Bonds" and together with the 1998
Outstanding Bonds, the "Outstanding Bonds"), which shall mature on May 1 in each of the years
and in the principal amounts and bear interest payable semiannually on May 1 and November 1
in each year to maturity, as follows:
Year of
Maturity
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Principal Interest
Amount Rate
$ 90,000 4.70%
90,000 4.70
100 000 4.70
100 000 4.70
100 000 4.70
110 000 4.70
110 000 4.70
110 000 4.70
110 000 4.70
120,000 4.70
120,000 4.70
WHEREAS, the 1999 Bonds maturing on or after May 1, 2010 are subject to
redemption prior to maturity, at the option of the Town, on May 1, 2009 and thereafter on any
558370.1 001098 RES
date, in whole or in part, and if in part, in inverse order of maturity or in equal proportionate
amounts (selected by lot within a maturity), at the following redemption prices, plus accrued
interest to the date of redemption, as follows:
558370.1 001098 RES
Redemption Dates
(Both Dates Inclusive)
May 1, 2009 to April 30, 2010
May 1,2011 to April 30, 2011
May 1, 2012 and thereafter
Redemption Prices
(Pementages of Principal Amount)
102%
101
100
WHEREAS, Section 90.10 of the Local Finance Law, constituting Chapter 33-a
of the Consolidated Laws of the State of New York (herein called the "Law"), permits the Town
to refund all or a portion of the outstanding unredeemed maturities of the 1998 Bonds and the
1999 Bonds by the issuance of new bonds, the issuance of which will result in present value debt
service savings .for the Town, and the Town Board has determined that it may be advantageous
to refund all or a portion of the Outstanding Bonds;
NOW, THEREFORE, be it
RESOLVED BY THE TOWN BOARD OF THE TOWN OF SOUTHOLD, NEW
YORK (by the favorable vote of at least two-thirds of all the members of said Town Board), AS
FOLLOWS:
Section 1. In this resolution, the following definitions apply, unless a different
meaning clearly appears from the context:
(a) "Bond To Be Refunded" or "Bonds To Be Refunded" means all or a portion of
the aggregate Outstanding Bonds, as shall be determined in accordance with
Section 8 hereofi
(b) "Escrow Contract" means the contract to be entered into by and between the
Town and the Escrow Holder pursuant to Section 10 hereof.
(c) "Escrow Holder" means the bank or trust company designated as such
pursuant to Section 10 hereofi
(d)" Present Value Savings" means the dollar savings which result from the
issuance of the Refunding Bonds computed by discounting the principal and
interest payments on both the Refunding Bonds and the Bonds To Be
558370.1 001098RES
Refunded from the respective maturities thereof to the date of issue of the
Refunding Bonds at a rate equal to the effective interest cost of the Refunding
Bonds. The effective interest cost of the Refunding Bonds shall be that rate
which is arrived at by doubling the semi-annual interest rate (compounded
semi-annually) necessary to discount the debt service payments on the
Refunding Bonds from the maturity dates thereof to the date of issue of the
Refunding Bonds and to the agreed upon price including estimated accrued
interest.
(e) "Redemption Date" means May 1, 2008, or any date thereafter, with respect to
the 1998 Bonds and May 1, 2009 with respect to the 1999 Bonds.
(f)
"Refunding Bond" or "Refunding Bonds" means all or a portion of the
$3,000,000 Refunding Serial Bonds-2009 of the Town of Southold, authorized
to be issued pursuant to Section 2 hereof.
(g)
"Refunding Bond Amount Limitation" means an amount of Refunding Bonds
which does not exceed the principal amount of Bonds To Be Refunded plus
the aggregate amount of unmatured interes! payable on such Bonds To Be
Refunded, to and including the applicable Redemption Date, plus redemption
premiums payable on such Bonds To Be Refunded as of such Redemption
Date, as hereinabove referred to in the Recitals hereof, plus costs and
expenses incidental to the issuance of the Refunding Bonds including the
development of the refunding financial plan, and of executing and performing
the terms and conditions of the Escrow Contract and all fees and charges of
the Escrow Holder as referred to in Section 10 hereof.
Section 2. The Town Board of the Town (herein called the "Town Board"),
hereby authorizes the refunding of the Bonds To Be Refunded, and appropriates an amount not
to exceed $3,000,000 to accomplish such refunding. The plan of financing said appropriation
includes the issuance of not to exceed $3,000,000 Refunding Bonds and the levy and collection
of a tax upon all the taxable real property within the Town to pay the principal of and interest on
said Refunding Bonds as the same shall become due and payable. Bonds of the Town in the
558370.1 001098 RES
maximum principal amount of $3,000,000 and substantially designated as "REFUNDING
SERIAL BONDS-2009", are hereby authorized to be issued pursuant to the provisions of the
Law. The proposed financial plan for the refunding in the form attached hereto as Exhibit A
(the "refunding financial plan") prepared for the Town by Roosevelt & Cross, Incorporated, New
York, New York, and hereby accepted and approved, includes the deposit of all the proceeds of
said Refunding Bonds with an Escrow Holder pursuant to an Escrow Contract as authorized in
Section 10 hereof, the payment of all costs incurred by the Town in connection with said
refunding from such proceeds and. the investment of a portion of such proceeds by the Escrow
Holder in certain obligations. The principal of and interest on such investments, together with
the balance of such proceeds to be held uninvested, if any, shall be sufficient to pay (i) the
principal of and interest on the Bonds To Be Refunded becoming due and payable on and prior
to each applicable Redemption Date and (ii) the principal of and premium on the Bonds To Be
Refunded which are to be called for redemption prior to maturity on any such Redemption Date.
Section 3. The Bonds To Be Refunded referred to in Section 1 hereof are all or a
portion of the Outstanding Bonds issued pursuant to the bond resolutions duly adopted on their
respective dates, authorizing the issuance of bonds of the Town for open space and agricultural
land preservation. In accordance with the refunding financial plan, the Refunding Bonds
authorized in the aggregate principal amount of not to exceed $3,000,000 shall mature in
amounts and at dates to be determined. The Supervisor, the chief fiscal officer of the Town, is
hereby authorized to approve all details of the refunding financial plan not contained herein.
Section 4. The issuance of the Refunding Bonds will not exceed the Refunding
Bond Amount Limitation. The Refunding Bonds shall mature not later than the maximum
period of probable usefulness ("PPU") permitted by law at the time of original issuance of the
Bonds to be Refunded. The maximum period of probable usefulness ("PPU") of the Bonds to be
Refunded is thirty (30) years.
Section 5. The aggregate amount of estimated Present Value Savings is set forth
in the proposed refunding financial plan attached hereto as Exhibit A, computed in accordance
with subdivision two of paragraph b of Section 90.10 of the Law. Said refunding financial plan
has been prepared based upon the assumption that the Refunding Bonds will be issued in the
aggregate principal amount, and will mature, be of such terms and bear such interest as set forth
therein. The Town Board recognizes that the principal amount of the Refunding Bonds, the
558370.1 001098RES
maturities, terms and interest rates, the provisions, if any, for the redemption thereof prior to
maturity, and whether or not any or all of the Refunding Bonds will be insured, and the resulting
present value savings, may vary from such assumptions and that the refunding financial plan
may vary from that attached hereto as Exhibit A.
Section 6. The Refunding Bonds may be sold at public or private sale and the
Supervisor, the chief fiscal officer of the Town, is hereby authorized to execute a purchase
contract on behalf of the Town for the sale of said Refunding Bonds, provided that the terms and
conditions of such sale shall be approved by the State Comptroller, and further providing that
prior to the issuance of the Refunding Bonds the Supervisor shall have filed with the Town
Board a certificate approved by the State Comptroller setting forth the Present Value Savings to
the Town resulting from the issuance of the Refunding Bonds. In connection with such sale, the
Town authorizes the preparation of an Official Statement and approves its use in connection with
such sale, and further consents to the distribution of a Preliminary Official Statement prior to the
date said Official Statement is distributed. In the event that the Refunding Bonds are sold at
public sale pursuant to Section 57.00 of the Law, the President of the Board of Education is
hereby authorized and direct to prepare or have prepared a Notice of Sale, a summary of which
shall be published at least once in (a) "THE BOND BUYER", published in the City of New York
and (b) the official newspaper(s) of the Town having general circulation within said Town, not
less than five (5) nor more than thirty (30) days prior to the date of said sale. A copy of such
notice shall be sent not less than eight (8) nor more than thirty (30) days prior to the date of said
sale to (1) the State Comptroller, Albany, New York 12236; (2) at least two banks or trust
companies having a place of business in the county in which the Town is located, or, if only one
bank is located in such County, then to such bank and to at least two banks or trust companies
having a place of business in an adjoining county; (3) "THE BOND BUYER", 1 State Street
Plaza, New York, New York 10004; and (4) at least 10 bond dealers. The Supervisor is hereby
further authorized and directed to take any and all actions necessary to accomplish said
refunding, and to execute any contracts and agreements for the purchase of and payment for
services rendered or to be rendered to the Town in connection with said refunding, including the
preparation of the refunding financial plan referred to in Section 2 hereof.
Section 7. Each of the Refunding Bonds authorized by this resolution shall
contain the recital of validity prescribed by Section 52.00 of the Law and said Refunding Bonds
558370.1 001098RES
shall be general obligations of the Town, payable as to both principal and interest by a general
tax upon all the taxable real property within the Town without limitation as to rate or amount.
The faith and credit of the Town are hereby irrevocably pledged to the punctual payment of the
principal of and interest on said Refunding Bonds and provision shall be made annually in the
budget of the Town for (a) the amortization and redemption of the Refunding Bonds to mature in
such year and (b) the payment of interest to be due and payable in such year.
Section 8. Subject to the provisions of this resolution and of the Law, and
pursuant to the provisions of Section 21.00 of the Law with respect to the issuance of bonds
having substantially level or declining annual debt service, and Sections 50.00, 56.00 to 60.00,
90.10 and 168.00 of the Law, the powers and duties of the Town Board relative to determining
the amount of Bonds To Be Refunded, prescribing the terms, form and contents and as to the sale
and issuance of the Refunding Bonds, and executing any arbitrage certification relative thereto,
and as to executing the Escrow Contract described in Section 10, the Official Statement referred
to in Section 6 and any contracts for credit enhancements in connection with the issuance of the
Refunding Bonds and any other certificates and agreements, and as to making elections to call in
and redeem all or a portion of the Bonds to be Refunded, are hereby delegated to the Supervisor,
the chief fiscal officer of the Town.
Section 9. The validity of the Refunding Bonds authorized by this resolution may
be contested only if:
(a) such obligations are authorized for an object or purpose for which the
Town is not authorized to expend money, or
(b)
the provisions of law which should be complied with at the date of the
publication of such resolution, or a summary thereof, are not substantially
complied with,
and an action, suit or proceeding contesting such validity is commenced within twenty days after
the date of such publication, or
(c) such obligations are authorized in violation of the provisions of the
constitution.
558370.1 001098 RES
Section 10. Prior to the issuance of the Refunding Bonds, the Town shall contract
with a bank or trust company located and authorized to do business in New York State, for the
purpose of having such bank or trust company act as the Escrow Holder of the proceeds,
inclusive of any premium from the sale of the Refunding Bonds, together with all income
derived from the investment of such proceeds. Such Escrow Contract shall contain such terms
and conditions as shall be necessary in order to accomplish the refunding financial plan,
including provisions authorizing the Escrow Holder, without further authorization or direction
from the Town, except as otherwise provided therein, (a) to make all required payments of
principal, interest and redemption premiums to the appropriate paying agent with respect to the
Bonds To Be Refunded, (b) to pay costs and expenses incidental to the issuance of the Refunding
Bonds, including the development of the refunding financial plan, and costs and expenses
relating to the execution and performance of the terms and conditions of the Escrow Contract
and all of its fees and charges as the Escrow Holder, (c) at the appropriate time or times to cause
to be given on behalf of the Town the notice of redemption authorized to be given pui'suant to
Section 13 hereof, and (d) to invest the monies held by it consistent with the provisions of the
refunding financial plan. The Escrow Contract shall be irrevocable and shall constitute a
covenant with the holders of the Refunding Bonds.
Section 11. The proceeds, inclusive of any premium, from the sale of the
Refunding Bonds, immediately upon receipt shall be placed in escrow by the Town with the
Escrow Holder in accordance with the Escrow Contract. All moneys held by the Escrow Holder
shall be invested only in direct obligations of the United States of America or in obligations the
principal of and interest on which are unconditionally guaranteed by the United States of
America, which obligations shall mature or be subject to redemption at the option of the holder
thereof not later than the respective dates when such moneys will be required to make payments
in accordance with the refunding financial plan. Any such moneys remaining in the custody of
the Escrow Holder after the full execution of the Escrow Contract shall be returned to the Town
and shall be applied by the Town only to the payment of the principal of or interest on the
Refunding Bonds then outstanding.
Section 12. That portion of such proceeds from the sale of the Refunding Bonds,
together with interest earned thereon, which shall be required for the payment of the principal of
and interest on the Bonds To Be Refunded, including any redemption premiums, in accordance
558370. I 001098 RES
with the refunding financial plan, shall be irrevocably committed and pledged to such purpose
and the holders of the Bonds To Be Refunded shall have a lien upon such moneys and the
investments thereof held by the Escrow Holder. All interest earned from the investment of such
moneys which is not required for such payment of principal of and interest on the Bonds To Be
Refunded shall be irrevocably committed and pledged to the payment of the principal of and
interest on the Refunding Bonds, or such portion or series thereof as shall be required by the
refunding financial plan, and the holders of such Refunding Bonds shall have a lien upon such
moneys held by the Escrow Holder. The pledges and liens provided for herein shall become
valid and binding upon the issuance of the Refunding Bonds and the moneys and investments
held by the Escrow Holder shall immediately be subject thereto without any further act. Such
pledges and liens shall be valid and binding against all parties having claims of any kind in tort,
contract or otherwise against the Town irrespective of whether such parties have notice thereof.
Neither this resolution, the Escrow Contract, nor any other instrument relating to such pledges
and liens, need be filed or recorded.
Section 13. In accordance with the provisions of Section 53.00 and of paragraph
h of Section 90.10 of the Law, the Town Board hereby elects to call in and redeem all or a
portion of the Bonds To Be Refunded which are subject to prior redemption according to their
terms on the Redemption Date, as shall be determined by the Supervisor in accordance with
Section 8 hereof. The sum to be paid therefor on the applicable Redemption Date shall be the
par value thereof, the accrued interest to such Redemption Date and the redemption premiums, if
any. The Escrow Holder is hereby authorized and directed to cause a notice of such call for
redemption to be given in the name of the Town by mailing such notice at least thirty days prior
to such Redemption Date, and in accordance with the terms appearing in the Bonds to be
Refunded, to the registered holders of the Bonds To Be Refunded which are to be called in and
redeemed. Upon the issuance of the Refunding Bonds, the election to call in and redeem the
Bonds To Be Refunded which are to be called in and redeemed in accordance herewith and the
direction to the Escrow Holder to cause notice thereof to be given as provided in this Sectibn
shall become irrevocable and the provisions of this Section shall constitute a covenant with the
holders, from time to time, of the Refunding Bonds, provided that this Section may be amended
from time to time as may be necessary to comply with the publication requirements of paragraph
a of Section 53.00 of the Law, as the same may be amended from time to time.
558370.1 001098RES
Section 14. This bond resolution shall take effect immediately, and the Town
Clerk is hereby authorized and directed to publish the foregoing resolution, in summary, together
with a Notice attached in substantially the form prescribed by Section 81.00 of the Law in the
"The Suffolk Times," and "Newsday," two newspapers having general circulation in the Town
and hereby designated the official newspapers of said Town for such publication.
558370. I 001098 RES
The adoption of the foregoing resolution was seconded by Councilman Albert
Krupski, Jr. and duly put to a vote on roll call, which resulted as follows:
AYES: Scott A. Russell, Supervisor
Councilman Albert Krupski, Jr
Councilman Vincent Orlando
Councilman William Ruland
Councilman Thomas Wickham
Justice Louisa Evans
NOES: None
The resolution was declared adopted.
558370.1 001098 RES
EXHIBIT A
PROPOSED REFUNDING FINANCIAL PLAN
558370.1 001098 RES
CERTIFICATE
I, ELIZABETH A. NEVILLE, Town Clerk of the Town of Southold, in the
County of Suffolk, New York, HEREBY CERTIFY that the foregoing annexed extract of the
minutes of a meeting of the Town Board of said Town of Southold duly called and held on
February 24, 2009, has been compared by me with the original minutes as officially recorded in
my office in the Minute Book of said Town Board and is a true, complete and correct copy
thereof and of the whole of said original minutes so far as the same relate to the subject matters
referred to in said extract.
IN wITNEss WHEREOF, I have hereunto set my hand and affixed the
corporate seal of said Town of Southold this 24th
day of February, 2009.
(SEAL)
Town Clerk
558370.1 001098RES
REFUNDING BOND RESOLUTION OF THE TOWN OF SOUTHOLD,
NEW YORK, ADOPTED FEBRUARY 24, 2009, AUTHORIZING THE
REFUNDING OF CERTAIN OUTSTANDING SERIAL BONDS OF
SAID TOWN, STATING THE PLAN OF REFUNDING,
APPROPRIATING AN AMOUNT NOT TO EXCEED $3,000,000 FOR
SUCH PURPOSE, AUTHORIZING THE ISSUANCE OF NOT TO
EXCEED $3,000,000 REFUNDING BONDS TO FINANCE SAID
APPROPRIATION, ' AND MAKING CERTAIN OTHER
DETERMINATIONS RELATIVE THERETO.
The object or purpose is to refund of all or a portion of certain outstanding serial bonds of the
Town issued in 1998 and 1999 for open space and agricultural land preservation.
The period of probable usefulness for which the 1998 and 199 bonds were issued is thirty (30)
years, commencing on the date of original issuance of the first bonds or bond anticipation notes
issued for the respective purposes for which the outstanding bonds were issued.
The amount of obligations to be Issued is not to exceed $3,000,000
A complete copy of the Bond Resolution summarized above shall be available for public
inspection during normal business hours at the office of the Town Clerk, Town Hall, 53095 Main
Road, Southold, New York.
BY ORDER OF THE TOWN BOARD
OF THE TOWN OF SOUTHOLD
Dated: February 24, 2009
Southold, New York
ELIZABETH A. NEVILLE
Town Clerk
558370,1 001098 RES
(NOTICE TO BE ATTACHED TO AND TO BE PUBLISHED
WITH SUMMARY OF RESOLUTION AFTER ADOPTION)
LEGAL NOTICE
The resolution, a summary of which is published herewith, has been adopted on
the 25th day of February, 2009 and the validity of the obligations authorized by such resolution
may be hereafter contested only if such obligations were authorized for an object or purpose for
which the Town of Southold, in the County of Suffolk, New York, is not authorized to expend
money or if the provisions of law which should have been complied with as of the date of
publication of this Notice were not substantially complied with, and an action, suit or proceeding
contesting such validity is commenced within twenty days after the publication of this Notice, or
such obligations were authorized in violation of the provisions of the constitution.
BY ORDER OF THE TOWN BOARD
OF THE TOWN OF SOUTHOLD
DATED:
February 24, 2009
Southold, New York
Elizabeth A. Neville
Town Clerk
558370.1 001098RES
ESTOPPEL CERTIFICATE
I, ELIZABETH A. NEVILLE, Town Clerk of the Town of Southold, in the
County of Suffolk, New York (the "Town"), HEREBY CERTIFY as follows:
That a resolution of the Town Board of said Town entitled:
"REFUNDING BOND RESOL, UTION OF THE TOWN OF
SOUTHOLD, NEW YORK, ADOPTED FEBRUARY 24, 2009,
AUTHORIZING THE REFUNDING OF CERTAIN
OUTSTANDING SERIAL BONDS OF SAID TOWN, STATING
THE PLAN OF REFUNDING, APPROPRIATING AN
AMOUNT NOT TO EXCEED $3,000,000 FOR SUCH
PURPOSE, AUTHORIZING THE ISSUANCE OF NOT TO
EXCEED $3,000,000 REFUNDING BONDS TO FINANCE
SAID APPROPRIATION, AND MAKING CERTAIN OTHER
DETERMINATIONS RELATIVE THERETO,"
was adopted on February 24, 2009, and such resolution contained an estoppel clause as permitted
by Section 80.00 of the Local Finance Law and a notice setting forth substantially the statements
referred to in Section 81.00 of the Local Finance Law, together with a summary of such
resolution, was duly published as referred to in said Section 81.00 of the Local Finance Law.
That to the best of my knowledge, no action, suit or proceeding contesting the
validity of the obligations authorized by such resolution was commenced within twenty days
from the date of publication of such notice.
IN WITNESS WHEREOF, 1 have hereunto set my hand and affixed the
corporate seal of said Town this __ day of
,2009.
558370. I 001098 RES
Elizabeth A. Neville, Town Clerk
Town of Southold
558370.1 001098RES