HomeMy WebLinkAbout2000 05 08 Regular D Bond Floats and Debt Issuance
COMMISSION AGENDA
ITEM D
May 8, 2000
Meeting
~
Mgr.
Consent
Informational
Public Hearing
Regular X
/
Authorization
Dept.
REQUEST:
The General Services Department requests that the City Commission select one
of two financial advisory firms to perform services on an as-needed basis related
to bond floats and debt issuance.
PURPOSE:
The purpose of this agenda item is to authorize the City Manager to negotiate
and execute a services agreement with a financial advisory firm that can advise
the city on debt matters, and coordinate transactions necessary to issue bonds or
acquire loans for municipal purposes.
APPLICABLE LAW AND PUBLIC POLICY:
City Charter and Administrative Code
CONSIDERATIONS:
- The city's former financial advisor, James Lentz, informed the city that he will
no longer be able to function in that capacity.
- An RFP (Request for Proposals) was compiled and distributed to the financial
community.
Proposals were received from Hanifen, Imhoff of Winter Park, and Public
Financial Management of Orlando.
Both proposals were referred to the city's former financial advisor, James
Lentz, for his recommendations, and in-house evaluations were conducted
by staff.
May 8, 2000
City Commission Regular Agenda
Item"D"
FUNDING:
To be determined.
STAFF RECOMMENDATION:
Based on the pricing and terms offered, staff recommends the City
Commission select Public Financial Management as the city's financial advisory
firm, and authorize the City Manager to negotiate and execute a services
agreement consistent with their proposal of March 15, 2000
ATTACHMENTS:
Proposal for Financial Advisory Services, Public Financial Management,
Orlando, FL, dated March 15, 2000.
Response to Request for Proposal for Financial Advisor, Hanifen, Imhoff,
Winter Park, FL, dated March 15, 2000.
COMMISSION ACTION:
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Response to
Request for Proposal
For Financial Advisor
RFP-006-00/GD
Prepared by
HANIFEN, IMHOFF
A DIVISION OF STIFEL,
NICOLAUS & COMPANY, INC.
Southeast Regional Office
1560 N. Orange A venue, Suite 210
Winter Park, Florida 32789
Phone: (407) 622-0296
Fax: (407) 622-0305
GARY E. AKERS
Senior Vice President
JEFFREY T. LARSON
Managing Director
March 15, 2000
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~ AF;:( 07 '00 :S: 17 FR HA~II FEr-I ir'IHOFF OPL FL
TO 4073274753
P.OU01
Honifen, Imhoff Inc.
Inve.~lm8nt 13onk~rc
1560 North Orer,ge .-"vr;.,,,,, S'"il'; ,"-:J:}
'.l./lr.ret rO'Y-. Hor;~a .3:;:7;;9
(nO'!) 6'~;-O2';'.~ F/\:< ('::::7) c2::.C.3C~
Via Telefax # 407-327-4753
j\.'larch 7, 2000
Mr. Gene DeMarie
Director of General Services
City of Winter Springs
1126 East State Road 434
Winter Springs, Florida 32708-2799
Re: Financial Advisor Proposal. City's Letter Dated March 27, 2000
Proposed Fcc Schedule
Dear Mr. DeMarie:
We are pleased to r<::spond to the <tdditional questions in the City's kner. We have found that the
typical approach employed by a municipality in (\ simi lar situation is to (irst rank. the participants and
then try to negotiate an <lcceplcole Contract \"ith the top ranked tirm. tn the an~a of compensation, we
note that it is import.:mt for both pmies to also underSTand the scope of services requested, and then
tailor a Contract that best mC~IS the City's needs and objectives. Therefore, we have provided the
information below, but also fet:1 very comfortable in our ability to provide a high level uf value-added
service based on our prior demonstrated performance to the City. Of the two responding lirms,
Hanifen's local team is the only finn that brings a recem service record to the City on its last bond
is~ue, which included helping th~ City obtain its first ever "AU category underlying credit rat in!; with
the rating agencies.
1. Do you require a monthly ret2-iner? YES_ NO ~
2. If YES, hov." much?
3. Is the retainer credited ag<!insl a per bund or debt fee? YES_NO_
4. fee quote per bond or debt issuancc'
issue Size
0- $\ Million
$1 - $3 Iv1illion
S3 - $5 Million
S5 Million <md Above
Amount
S5,OOO *
$6,500
$7,500
+$0.90 per $1,000
" Minimum Fee
We hope that ti1~ above is usefJl, and do not hesitate to coniact us if there are any further questions.
We look forward to continuing. to be of service to the City.
Sincerdy,
~M(W;<Jh1 @-
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G~AkerS
Senior Vice President
Jeffrey T. Larson
Managing Director
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APP-07-2080 lS:08
36%
~~ TOTAL PAGE.01 ~*
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CITY OF WINTER SPRINGS, FLORIDA
1126 EAST STATE ROAD 434
WINTER SPRINGS. FLORIDA 32708-2799
Telephone (407) 327-1800
March 27. 2000
Gary E. Akers Jeffrey. T. Larson
Senior Vice President and Managing Director
Hanifen, Imhoff Inc.
1560 North Orange Avenue, Suite 210
Winter Park, Florida 32789
Gentlemen;
The City has received two (2) very qualified proposals to serve as Financial Advisor to the City.
The City is requesting the firms resubmit their prpposed fees based upon the successful issuance
of debt; should the City require advice other than for debt issuance then the proposed hourly
rates previously quoted will be used. This quote should include all services rendered in
connection with the issuance ('If debt :ncluding, but not limited to, review of all documents required
in connection with the issuance of debt. assistance with offering documents, rating or insurance
presentation material, attendance at ail City Commission meetings related to the debt issuance,
advice regarding the method of sale, revielfl of any and all bond purchase agreements and other
matters in connection with the iS5uC::lCe of debt
1. Do you require a monthly retainer? YES NO
2. If YES, how much? '
3. Is the retainer credited against a per bond or debt fee? YES_NO
4. Fee quote per bond or debt issuance:
0-$1 million
$1' - $3 million
$3 - $5 million
$5 million and above
Amount
Please quote either a minimum fee or fee per $1,000 of borrowings.
Please fax this proposal to the undersigned at 407-327-4753 on April 7, 2000.
Gene DeMdrie
Dir~('tor of Geilera! Services
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Honifen, Imhoff Inc,
Investment Bankers
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1560 North Orange Avenue. Suite 210
Winter Park, Florida 32789
(407) 622-0296 FAX (407) 622-0305
March 15, 2000
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Mr. Gene DeMarie
Director of General Services
City of Winter Springs
1 126 East State Road 434
Winter Springs, Florida 32708
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RE: Financial Advisory Services - RFP-006-00/GD
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Dear Mr. DeMarie:
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We are pleased to submit our qualifications to serve as Financial Advisor to the City of Winter
Springs (the "City") to assist in the issuance of municipal bonds and provide, when requested,
additional ongoing consulting services, Our qualified professional staff is available immediately to
provide comprehensive financial advisory services to the City.
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Hanifen, Imhoff is ideally suited to serve as the City's Financial Advisor for the following reasons:
Experience with Similar Issues
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Members of the Hanifen financing team have served as Financial Advisor on over 57 issues totaling in
excess of $2 billion for issuers across the country since 1995. Our experience on municipal debt
issues ranges from issues under $1,000,000 for small cities and districts to $300,000,000 and
$400,000,000 issues for major, highly rated state issuers. This includes serving as Financial Advisor
on Florida issues totaling in excess of $780,464,000, with the majority of these engagements handled
by professionals in our Winter Park office, Some of our recent experience includes financings for the
cities of Fort Pierce, Fort Meade, Mount Dora, Orange City, Palatka, Palm Bay, Panama City, Port St.
Lucie, Winter Haven, as well as multiple issues for Bay County, Osceola County, Seminole County,
St. Lucie County and the Okeechobee County Utility Authority.
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Experienced Team Assigned to the City
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The personnel assigned to assist the City are experienced in all aspects of Florida public financings;
including research, technical and computer analysis, structuring and marketing. Gary Akers and Jeff
Larson will be heading the Hanifen, Imhoff team, with assistance from other professionals in our local
office. This local Hanifen team brings prior experience on six (6) previous City bond issues in excess
of $36.72 million. Gary Akers, Senior Vice President, brings 22 years of experience in Florida Public
Finance to this engagement. Jeff Larson, Managing Director, a past resident of Winter Springs, is
active with many local charitable and civic organizations and brings valuable experience with many
comparable cities, counties and utility authorities,
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Market and Pricing Resources Available to the City
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Hanifen, Imhoff is annually involved in over $15 billion of municipal underwritings - an impressive
total directly attributable to the excellent national reputation of the firm. Our fixed income, sales and
trading professionals are active daily in the markets for tax-exempt and taxable products which helps
us provide immediately available information to the City and its Financial Advisor. This can be
extremely useful in evaluating the timing of issues, market supply and demand, current interest rate
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....""'.....'''....ICI'.'...__
Member:
National Association 01
Securities Dealers. Inc.
Denver, Colorado
Winter Park. Florida
Omaha, Nebraska
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Hanifen, Imhoff Inc.
Investment Bankers
levels, proposed covenants, call features and other critical pricing considerations. As provided in our
proposal, the recent merger with Stifel, Nicolaus provides the local team with additional resources and
capabilities.
No Litigation History
An increasing amount of counties, cItIes, school districts and other institutional issuers are
determining that it is important to deal with a firm and its team of professionals that have an
unblemished reputation. Hanifen's record exists because we place the highest priority and emphasis
on customer service and professional ethics. Hanifen, Imhoffs Southeast Regional Investment
Banking office continues to expand its business in Florida and is proud of its impeccable track record.
This emphasis is evidenced by Jeff Larson's recent participation as a panelist at a Bond Buyer Florida
Public Conference addressing industry standards, SEC enforcement, MSRB rules and yield burning
issues.
Understanding of Work, Commitment to the City and Local Presence
Because of similar engagements in Florida and across the country, we feel that our professional staff is
thoroughly aware of the services required and are fully committed to providing these services. Our
broad range of services, including computer and technical support, will be provided by Hanifen
Imhoffs local office, Both Mr. Akers and Mr. Larson are residents of Central Florida. The
accessibility of our fully staffed office eliminates excessive travel and delays and the necessity for the
City to depend on services or support from offices and personnel in other parts of the country or state.
Rating Agency and Bond Insurer Expertise
One area of demonstrated perfonnance that can also benefit the City is our track record in obtaining
new underlying ratings for issuers and rating upgrades. As shown with the cities of Port St. Lucie,
Winter Haven, Fort Pierce, Palm Bay, Osceola County and Seminole County, to name a few, these
clients achieved higher ratings which then directly helped in lowering the interest rates on their issues
and significantly reduce the annual debt service obligations. The same experience held true with the
Hanifen led effort on the City's Series] 999 issue. The "A" underlying rating resulted in savings in
excess of $390,000.
Conclusion
Representing the City of Winter Springs would be a privilege for our firm and we look forward to
being a part of the City's team. Relationships earned through providing value-added services have
been critical to our significant growth in Florida. Therefore, we are confident that you will examine
our approach, qualifications and experience and conclude that our firm is most capable of serving as
your Financial Advisor. Our depth of experience and local resources insures that we will provide the
City with timely advice and support, and help identify the optimum financing option. Please feel free
to contact us at (407) 622-0296 with any questions or comments.
Si cerely,
,~,~
resident
)81-
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Letter of Transmittal
Section
Public Finance Experience of the Finn ............................................................................... 1
Personnel Assigned to the RFP ,...,............................. ................................................. .......... 2
Prior Service to the City of Winter Springs ..........................................................................3
Litigation History and Capital Position...... .......... ....................... ..... ..... ......................... ....... 4
References...................................,...................,........,...........................,....................... .,.,..... 5
Approach to Providing Financial Advisory Services ............................................................ 6
Fee Proposal... ... ,....,...,... ,... ,. ,... ......... ...., ,. ....,........ ....................,...... ,....,... .......... ,......,.......... 7
Rating Agencies and Bond Insurers...... ............................................... .......... ....................... 8
Conflict of Interest Statement ..........,.,....,.,.....,....,.,......, ......................................... .............. 9
Why Hanifen, Imhoff..................................,.,....,...,.....................,....,....,..............,.... .........,. 10
APPENDIX
Florida Financial Advisory Experience List.. .................. ......... ............ ............ ............. ....... A
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For over 40 years, Hanifen, Imhoff has provided innovative and reliable financial services to
clients throughout the United States. We began in 1960 as the finn of Hanifen, Imhoff and
Samford, a municipal bond brokerage house with only five employees focusing on public finance
in the Rocky Mountain Region. Hanifen, Imhoff has since grown to a premiere regional
investment banking finn, providing a full range of investment banking services to our clients
throughout the country. Following our merger with Stifel (see attached), we currently have over
48 professionals in public finance and sales/trading dedicated to providing services to the public
sector. In addition, over 500 retail sales professionals assist in distributing municipal and
institutional securities from the public sector. The map displayed below depicts the broad reach
of our public finance activities. Hanifen, Imhoff has offices in:
States In Which Hanifen, Imhoff Inc.
Has Completed Transactions
. Winter Park, Florida
. Denver, Colorado
. Omaha, Nebraska
The finn's major operating departments include:
. Public Finance
. Fixed Income Sales and Trading
. Corporate Finance
. Institutional Equity Sales
. Corporate Research
IncbuJes SolI, s.m.r, l'.o-MantZ/J", nntIRCUU Ad'Jw.,.
Public .'Wlhs, I'rlVG. PI4e~11Unls and CtnIlpttllh, StUI.
PUBLIC FINANCE - SOUTHEAST REGION
I Transactions Completed
o No Transactions Completed
Hanifen, Imhoff established its Southeastern Regional office in Central Florida in 1995. This
decision was driven by the finn's desire and commitment to continue to grow its investment
banking presence in Florida and the surrounding southeastern states. The Southeast Region
office is managed by Jeffrey T. Larson. The office is currently engaged to underwrite additional
issues for new and existing clients and advise many others on their upcoming financings. This
growth has included establishing a Florida based Fixed Income Sales and Trading Desk in 1999.
Hanifen, Imhoff is proud of its track record, which is attributed to the hard work and diversified
talents of the employees at our finn. Through a corporate philosophy that focuses on team-work
and input from diversified backgrounds, Hanifen, Imhoff delivers products and services to our
issuer-clients that are unparalleled in tenns of quality, cost, and timeliness. The merger with
Stifel will provide our clients with additional capital strength, technological resources, retail
sales distribution, and product expertise.
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EXPERIENCE LIST
We have attached, for your reference, a Florida financing experience list in the Appendix. We
are the fastest growing Financial Consulting firm in Florida. ~s seen in our expanded Florida
customer list and references, our demonstrated commitment to providing professional and
responsive service is reflected in our "repeat business" with existing clients. This growth has led
to the recent hiring of additional professional staff and our plans to add three to five additional
professionals in our local office.
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HANIFEN, IMHOFF INC.
STIFEL FINANCIAL CORP
i\1ERGER FACT SHEET
D Stifel Financial Corp. (NY~E:SF) and Hanifen, Imhoff Inc. have reached a
definitive merger agreement, subject to Board and Shareholder approval.
. Hanifen, Imhoff Inc., founded in 1960, is the largest independent institutional
investment banking firm headquartered in the Rock.y Mountain region.
.. Stifel Financial Corp., founded in 1890, is a full-service regional brokerage
and investment banking firm headquartered in S1. Louis, Missouri. The firm
has locations in 14 states, mainly in the Midwest, and operates retail broker-
age offices in Denver, Fort Collins, and Colorado Springs, Colorado,
.. Stifel Financial Corp. has approximately $60 million in capital and provides
securities brokerage, investment banking, trading, investment advisory, and
related financial services through its ,,,holly-owned subsidiaries, primarily
Stifel, Nicolaus & Company, Incorporated. Stifel, Nicolaus and Company is a
member of the New York Srock Exchange, lne. and other major exchanges.
II Recognizing the excellent reputation developed over the past 40 years,
Hanifen, lmhoffs fixed income operations, including municipal finance, will
retain the name of Hanifen, Imhoff, Inc. and operate as a division of Stifel,
Nicolaus & Company, Incorporated.
III The transition will be relatively seamless to Hanifen, Imhoff clients. Walt
Imhoff will continue to head the Denver office, having responsibility for
both equity and fu;:ed income operations.
.
The merger will greatly enhance Hanifell, Imhoffs capital position, enabling
the firm to offer expanded product offerings and state-of-the-art technology
and support systems.
.
Hanifen Imhoffs highly-successful fixed income operation in the Rock)'
Mountain region and Florida complements Stifel's strong municipal finance
presence in the Midwest.
.
The merger will serve to solidify Hanifen, Imhoffs position as the leading
miderwriter in the Rock)' Mountain region. Since 1996, the firm has man-
aged, co-managed, or been the financial advisor on approximately $9 billion
of municipal financings.
.
More public finance bankers will be available to serve clients, even further
increasing Hanifen, Imhoffs focus on Florida and the Rocky Mountain region.
.
Fixed income product distribution will be significantly expanded through
Stife!, Nicolaus' fast-growing retail network of 335 investment executives
located in 12 states, including Colorado.
.
The merger is a union of two highly respected super-regional firms that
will provide a broader platform for our fixed income operations, while
at the same time strengthen Hanifen, I?lhoffs position in its traditional
marketplace.
Hanifen
Imhoff Inc.
investment Bonkers
303-296-2300
800-525-9989
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I Stitfel Nicolaus - -
Page 1 0
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flfL!J;J.EI2 filfl1t~lj)1/J31J,.ilJ
I'Stife! @;cess
I For Immediate Release
January 12, 2000
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STIFEL FINANCIAL CORP.
AND
HANIFEN, IMHOFF INC.
ANNOUNCE MERGER CLOSING
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I ST. LOUIS and DENVER, January 12, 2000 - Stifel Financial Corp. (NYSE:SF) and Hanifen, Imhoff Inc., a
Denver-based investment bank, announced that they have closed the merger between the two companies.
The transaction is being accounted for as a purchase and provides for a tax-free exchange of approximately
I 600,000 shares of Stifel Financial Corp. for all of the outstanding shares of Hanifen, The exchange ratio was
calculated using the respective book values of Stifel Financial and Hanifen Imhoff. The total shares ultimately
issued in the transaction will be based upon the final closing equity of Hanifen at December 31, 1999. In
I connection with the transaction, certainz key associates of Hanifen executed employment agreements
containing non-compete provisions and restrictions on the sale of the stock received in the merger, and were
awarded options in Stifel Financial Corp,
I Stjfel's board of directors also authorized the repurchase of up to 600,000 additional common shares, These
purchases may be made on the open market or in privately negotiated transactions, depending upon market
conditions and other factors. Repurchased shares may be used to meet obligations under the Company's
I employee benefit plans and for general corporate purposes. This authorization is in addition to Stifel's
previously announced stock repurchase plan.
I Stifel Financial Corp. is a full-service regional brokerage and investment banking firm, established in 1890 and
headquartered in St. Louis, Missouri. The company has approximately $60 million in capital and provides
securities brokerage, investment banking, trading, investment advisory, and related financial services through
I its wholly-owned subsidiaries, primarily Stifel, Nicolaus & Company, Incorporated. The firm has locations in 14
states, mainly in the Midwest, and operates retail brokerage offices in Denver, Fort Collins, and Colorado
Springs, Colorado.
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Stifel @ccess I News & Quotes I Research I Investor Relations I Calculators I Stifel News I Client Services I Mutual Funds I
Investment Banking I Public Finance I Career Opportunities I Branch Information I Contact Us I Web Tools I Site Map
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This site is published in the United States for U.s. residents only. The services offered within this site are available exclusively
through our U.S. Investment Executives. Stifel Nicolaus Investment Executives may only conduct business with residents of the
state in which they are properly registered. For more complete information about any of the funds available through Stifel
Nicolaus, including their management fees, sales charges, and other expenses, please order a prospectus from one of our
Investment Executives at the branch office nearest you. The prospectus should be read carefully before investing or sending
money.
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Copyright 1999 Stifel Nicolaus
I http://stifel.com/mergerClosing.asp
3/13/
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We propose the following organizational structure in serving the City of Winter Springs. Gary Akers and
Jeff Larson will be serving as the primary financial consultants and both professionals bring extensive
Florida public finance experience, This team also provides a demonstrated service track record with the
City on multiple recent financings and assistance with bond proceeds investments and improving the
City's ongoing Investment Portfolio, Assistance from key support officers will be provided as needed,
including analytical and support services out of the Winter Park office,
Supporlom."", I
'1 Anul,'Ucul SUIJpnrt.,) "::
Asset F1nanC'c/lo, estment!t
Ed Stull
Vice President
CurIos Pereda
Senior Annly!-o'l
Ronald New
Vice Preslcllm.
TuxulJlc Snlcs & Trudlng
PRIMARY CONTACT OFFICERS
MR. GARY AKERS, SENIOR VICE PRESIDENT
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A resident of Seminole County, Mr. Akers is located in Hanifen, Imhoffs Winter Park office and has
over 22 years of underwriting and financial advisory experience in Florida. This includes managing the
Orlando office for Evensen Dodge, a national financial advisory firm, and serving as an Executive Vice
President at Southeastern Capital Securities in Orlando. He has served numerous counties, cities,
municipalities, airports, utility authorities, solid waste facilities and special tax districts throughout
Florida, His experience includes financing utilities, airports, transportation and tourist development/civic
center projects, tax increment redevelopment projects and general obligation financings. Mr. Akers has
completed over $3 billion in financings for Florida issuers, including 6 previous financings for the City of
Winter Springs. Some of his current and previous client relationships include:
. Bay County . City of Winter Springs . State of Mississippi
. Seminole County . City of Altamonte Springs . City of Oviedo
. V olusia County . City of Panama City . City of Sunrise
. Osceola County . City of Mount Dora . City of Melbourne
. Charlotte County
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Mr. Akers is a graduate of Marshall University in Huntington, West Virginia with a B.B,A. in accounting
and economics, Mr. Akers is licensed as a Series 7 General Securities Representative and a Series 24
General Securities Principal.
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_ I MR. .IEFFREY~ MANAGIN(; DIRECTQ~
Based in Winter Park, Mr. Larson manages Hanifen, Imhoff s Southeast Regional Investment Banking
office, Over 17 years, he has successfully closed a wide range of municipal and corporate financings
totaling over $5 billion, This included the recent $7.9 million Capital Improvement Refunding Revenue
Bonds, Series 1999 for the City of Winter Springs where Mr. Larson and Mr. Akers worked hard with
City staff to achieve, for the first time, an underlying "A" category rating for the City. Mr, Larson was
also recently selected as the Financial Consultant to the City of Deltona and brings extensive project
finance and assessment district financing experience to this engagement. Recently, he has served as an
Investment Banker or Financial Advisor to clients such as:
. City of Winter Springs . City of Winter Haven . Broward County
. City of Port St. Lucie . City of Stuart . V olusia County
. City of Fort Pierce . City of Orange City . Broward County HFA
. City of Palm Bay . City of Starke . Hernando County
. Okeechobee Utility Authority . City of New Smyrna Beach . Charlotte County
. S1. Lucie County . Sumter County . GOAA
. Okeechobee County . St. Edward's School . Kissimmee Utility Authority
. City of Pal atka . Orlando Utilities Commission . South Florida Water Management
Other Florida clients served by Mr. Larson include St. Lucie County Schools, Indian River County
Schools, Daytona Plastix, Catalina Lighting, the Adventist HealthCare Group, Panama CountylBay
County Airport, Hope Hospice, Marion County Schools, Southern States Utilities, Sumter County,
Southeast Vol usia Hospital District (Bert Fish Medical Center), Baader North America, Hillsborough
County Schools, Nova UniversityIMiami Dolphins, Tampa Sports Authority (Tampa Bay Lighting Arena
project), and various other municipal and corporate/institutional clients,
Prior to joining Hanifen, Imhoff, Mr, Larson was with SunTrust Capital Markets in Orlando, Florida
where he specialized in the structuring and marketing of a variety of public finance and capital markets
products including assessment financings, project development financings, utility project financings, non-
rated private placements, general obligation and revenue bond financings, interest rate hedging programs,
investment programs, industrial development bond financings and taxable and tax-exempt lower floaters,
Prior to that, he spent eight years with Barclays Bank PLC in Atlanta and San Francisco. Mr. Larson
received his Masters of Business Administration degree on an academic scholarship from Emory
University, Atlanta, Georgia in 1982, As part of his MBA graduate work, Mr. Larson worked, studied
and taught in Germany and Austria and was a Fulbright Scholar at the Johannes Kepler University in
Linz, Austria. He received an A.B. in Business Administration with honors from Franklin & Marshall
College, Lancaster, Pennsylvania, Mr. Larson's professional licenses with the State of Florida, National
Association of Securities. Dealers (NASD) and New York Stock Exchange (NYSE) include a Series 7
General Securities license, Series 63, Series 24 NASD General Securities Principal and Series 8 NYSE
principal's license.
He is a frequent speaker at industry conferences including the Annual FGFOA, Florida Bond Buyer,
FICP A, regional FGFOA Meetings, and Special District conferences on topics ranging from Industrial
Development, Capital Financing, Continuing Disclosure to SEC enforcementfMSRB, Mr, Larson also
served as a Moderator and Speaker at the 1999 FGFOA Conference which addressed the options of
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"Negotiated versus Competitive Bond issues". He remains active with the FGFOA as the Chairman of
the subcommittee on Treasury Management for 1999-2000 Annual Conference in Tampa (May 2000),
instructor at the FGFOA Institute, and as a speaker at various regional FGFOA groups. Mr. Larson is
also active in the local community, serving on the Board of Fugelberg Koch and Pathway Counseling
Ministries.
SUPPORT OFFICERS
; MR. ED STULL, VICE PRESIDENT
Mr. Stull serves as a Vice President in the Public Finance Department in Hanifen, Imhoffs Central
Florida office. Mr. Stull has been involved with numerous financings for counties, cities, school districts,
non-profit organizations, higher education and not-for-profit healthcare entities throughout the State of
Florida over his thirteen-year career. Prior to joining Hanifen, Imhoff, Mr. Stull was employed with
SunTrust Bank, Central Florida, N.A. in Orlando where he specialized in providing direct bank loans,
letters of credit, liquidity facilities, investments, cash management and interest rate hedging products to a
variety of clients in the Governmental, Institutional and Corporate markets. Mr. Stull is a graduate of the
University of Florida, receiving a B,S. in Business Administration with a major in Finance, Previous
client relationships include:
. City of Jacksonville . St. Lucie County . Gainesville Regional Utilities
. City of Wildwood . Columbia County . Florida Municipal Power Agency (FMP A)
. City of Kissimmee . City of Ocoee . City of Green Cove Springs
. City of Jacksonville Beach . Highlands County . St. Johns Water Control District
. City of St. Cloud . St. Johns County . Martin County School District
. City of Atlantic Beach . DeSoto County . University of Central Florida Foundation
. City of Panama City . Rollins College . Indian River Memorial Hospital District
Mr. Stull is licensed as a Series 7 and Series 63 General Securities Representative.
MR. NATE ECKLOFF, MANAGING DIRECTOR
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Mr. Eckloff has assisted in the underwriting of over $4 billion in municipal bonds. His 15 years of
experience covers a wide range of tax-exempt and taxable municipal finance including general obligation
bonds, sales tax revenue bonds, special assessment bonds, airport revenue bonds, gas tax revenue bonds,
electric revenue bonds, water and sewer revenue bonds, health care revenue bonds, lease-purchase
certificates of participation and advance refunding bonds, Mr, Eckloff is currently serving as investment
banker or financial advisor to several cities, counties and school districts including the City of Port St.
Lucie, His recent experience with Florida issuers includes:
. Okeechobee Utility Authority
. City of Port St. Lucie
. St. Lucie County
. City of Vero Beach
. City of Delray Beach
. Village of Royal Palm Beach
Nate is an associate member of the National Association of Bond Lawyers (NABL). Mr. Eckloff received
his Juris Doctorate from the University of Denver, College of Law where he was a member of the Denver
Law Journal, and his Master of Business Administration in Finance from the University of Denver,
College of Business Administration. Mr. Eckloff received his Bachelor's Degree in Agricultural
Economics from the University of Nebraska,
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, MR. Sl1iVEN II. /JELL MANAGIN(; DIRECTOR
._ - -j-....__......_ _..... -0__..___. . .... ., __. .___.. _" _"h ._. ""..__________ ... ._..
Mr. Bell has more than 19 years of municipal underwriting experience. He has specialized in public
propose finance for state agencies, cities, school districts and other political subdivisions with specific
emphasis on tax and user fee supported transactions. Mr. Bell also has extensive financial advisory
experience with services rendered to a wide array of clients.
Mr. Bell's experience includes the senior management of issues totaling over $6,0 billion in the area of K-
12 and higher education finance, general obligation bonds, user fee revenue issues, lease-purchase
financing, sales and excise tax revenue debt obligations, and tax allocation revenue debt bond issues.
Many issues managed have addressed flexibility for issuers with regard to certain optional, mandatory
and extraordinary call provisions, and creative financing techniques to fund reserve and stabilization
reserve funds. He has worked with state agencies in Nevada, California, Colorado, Arizona and Oregon
in various financing programs ranging from prison construction to Clean Water Act issues. Mr, Bell
provided testimony before State Legislature, including Nevada, regarding matters of education finance,
method of bond sale and state enhancement programs,
Mr. Bell received his Bachelor of Science degree from Colorado State University in 1969 and a Master of
Science degree from the University of Arizona in 1971. He currently serves on the Legislative
Committee of the Colorado Municipal League, is the past President of the Jefferson Education
Foundation, and is a past member of the Board of Directors of the Colorado Municipal Bond Dealers
Association.
ANALYTICAL SUPPORT
MR. CARLOS O. PEREDA, SENIOR ANALYST
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Mr. Pereda serves as the Senior Analyst in the Public Finance Department in Winter Park. Prior to
joining Hanifen, Imhoff, Mr. Pereda was employed in Orlando as a Financial Analyst/Consulting
Engineer for Black & Veatch, an international consulting firm with a strong Florida presence, His work
included the analysis of business and operating performance, rate and feasibility studies, the valuation of
water and wastewater utilities, and the creation of sophisticated financial models. Mr. Pereda worked
closely with Mr. Akers and Mr. Larson in developing the refunding and new money structure of the
City's Series 1999 Bond issue which included the utilization of zero coupon capital appreciation
bonds. Some of his recent clients include:
. City of Winter Springs (refunding, new money) . City of Palm Bay (feasibility, capital expansion)
. City of Winter Haven (utility acquisition, refunding, . City of Fort Pierce (DSRF releases, refundings,
capital expansion) new money)
. City of Fort Meade (refunding, capital expansion) . SEMAPA, Boliva (feasibility, tariffs)
. City of Coral Springs (acquisition, feasibility) . Manatee County (valuation, acquisition, rate study)
. Miami-Dade Water and Sewer Department . City of New Smyrna Beach Utilities Authority
(consulting engineer's report, revenue forecasting) (annual consulting engineer's report)
. City of Tampa (consulting engineer's report) . City of Tallahassee (rate design study)
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Prior to his consulting work at Black & Veatch, Carlos was a Systems Analyst and Engineer on the space
shuttle program for Lockheed Martin. Mr. Pereda received his Master of Business Administration from
the University of Central Florida, Orlando, in August of 1994, and his Bachelor of Science in Engineering
from the University of Central Florida in December of 1988. As the Senior Analyst in the Winter Park
office, Mr, Pereda will provide analytical support to the Hanifen senior consultants.
, MS. ANGELA BRADFORD, PUBLIC FINANCE ASSISTANT
--- - -.1.-- ------- ---------- --- .,--- -..- _, --------------- . - -
Ms, Bradford joined Hanifen, Imhoff in 1997 after working as an Associate for Evensen Dodge, a
national financial advisory firm, She has assisted in a variety of financings including general obligation,
sales tax, water and sewer and utility improvements. Her public finance background includes the
preparation of financial and refunding analysis, investment analysis, disclosure documents, official
statements and rating agency and insurance company materials. Angela received an AA from Brevard
Community College, FL with a concentration in accounting and economics, She will provide local
support and analysis to the Hanifen, Imhoff senior consultants.
MR. LESTER WILLSON, SENIOR VICE PRESIDENT
& SENIOR ANALYST
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Mr. Willson joined Hanifen, Imhoff Inc. in the Public Finance Department in 1993. He has extensive
experience in the municipal finance industry, including the structuring of over $1 billion in debt. This
includes structuring refunding bond issues and escrow accounts, and formulating cash flows for complex
issues such as state revolving loan programs, His activities have varied from general obligation municipal
transactions to complex revenue bond issues including water and water revenue bonds, water and sewer
revenue bonds, certificates of participation, and refunding bond issues.
Prior to joining Hanifen, Imhoff Inc" Mr. Willson spent 2 1/2 years as the Finance Manager for a large
Water Resources and Power Development Authority, His work included the analysis of the complex cash
flows involved with the oversight of a State's Revolving Fund Program which helped to finance over
twenty water and wastewater projects, Mr. Willson received his Masters of Business Administration from
the University of Denver and his bachelor's degree from the University of Colorado,
MARKETING AND PRICING SUPPORT
MR. MIKE IMHOFF, MANAGING DIRECTOR OF MUNICIPAL
n ; m. _. SYNDICATE AND TRADING
Michael F. Imhoff manages Hanifen Imhoff s syndication and trading desks, overseeing new issue pricing
and distribution and directing secondary market trading. Mike led the effort to aggressively price the
City's Series 1999 bond issue. His direct trading and market knowledge will be an invaluable member
of the Hanifen Financial Advisory team as we work to insure that the City's underwriters provide the
most flexible lowest interest rates available on the various financings. Mr. Imhoff has twelve (12) years
of experience in Municipal Sales and Trading. Prior to joining Hanifen, Imhoff Inc., Mike worked on the
floor of the New York Commodity Exchange (COMEX) and was with Isaak Bond Investments Inc. as a
municipal bond trader. He joined Hanifen, Imhoff Inc. as an institutional salesman in 1987 and joined the
municipal trading desk in 1989, His experience includes trading of general market, Colorado, Florida,
and Hawaii municipal bonds, as well as new issue syndication. Mr. Imhoff received his Bachelor of
Science in Finance at the University of Colorado, Boulder, and also studied International Finance at the
London School of Business in England. Mr. Imhoff has also served as a Board Member and Chairman of
the Regional Group of the Bond Market Association, our industry's national organization.
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, MR. T/JOMAS TIGIJ1~ VlCB PRBSIDENT
-f--- FLORIDA FIXED.lNCOMB S11..]5S & TRADING
Tom Tight joined Hanifen, Imhoff in 1999 and is a Vice President located in our Winter Park office, Mr,
Tight specializes in the sales and trading of tax exempt and taxable fixed income products, primarily for
issuers in the Florida and Southeast region, He has nine years of experience in the municipal finance
industry. Prior to joining Hanifen, Imhoff, Mr, Tight"was the underwriter for Painewebber's southeastern
regional trading desk in Orlando, Florida, Mr. Tight started his career at A. G, Edwards & Sons where he
was a trader and underwriter. Mr. Tight received a Bachelor of Science in Finance and an MBA with an
emphasis in Economics from St. Louis University. During his career, Tom has been involved in the
pricing of over $4.6 billion of municipal issues, underwriting for the following Florida issuers:
. Palm Beach County . City of Port St. Lucie
. Hillsborough County . Palm Beach Gardens
. Seminole County . Collier County
. Leon County . Hendry County
. Greater Orlando Aviation Authority . Orlando-Orange County Expressway Authority
. Orange County Schools . JEA (formerly Jacksonville Electric Authority
. State of Florida Board of Regents . Miami-Dad County
MR. ALAN SCOTT, MANAGING DIRECTOR OF MUNICIPAL SALB.\'
t ~ - . -
Alan Scott is a Managing Director of the Fixed Income Sales Department of Hanifen, Imhoff specializing
in the sale of tax exempt and taxable fixed income products. He is responsible for managing Hanifen's
fixed-income sales force, as well as being a producing salesman to select accounts. His customer base
encompasses large institutions, insurance companies, banks and investment advisers. Mr, Scott is also the
investment advisor to COLOTRUST, a $1 billion money market trust that services local and county
governments, school districts, and special districts in Colorado, Prior to joining Hanifen, Imhoff Inc., Mr,
Scott was an institutional salesman for three years at Newman and Associates, Inc., in Denver, Colorado.
He specialized in structuring and selling private placements and tax exempt bonds, In addition to his
extensive experience selling fixed-income products, Mr. Scott spent three years managing the investment
portfolio of a $2.3 billion mid-western bank. This position entailed investment decisions. asset-liability
management, and risk trading in the cash and future markets, Mr, Scott received a Bachelor of Arts in
History from Stanford University and an MBA from the University of Chicago with a specialization in
Finance,
ASSET FINANCE/INVESTMENTS SUPPORT
MI(. RON NE~ VICB PRI!,'SI/JENT. TAXAIJLE SALES & TRADING
- - ---l-----.. ..
Mr. New has been with Hanifen, Imhoff since 1994. In 1996, Mr. New was promoted to Manager of
Taxable Fixed Income Trading, Mr, New has also worked closely with the local Hanifen office in
providing investments advice and conservative, higher yielding securities for the City of Winter Springs
General Fund and Transportation Impact Fee Fund. He writes a daily market commentary and is a regular
contributor to various Hanifen, Imhoff newsletters. One of Mr. New's areas of focus is mortgage-backed
securities. He is well versed in the analysis of the cash flows of collateralized mortgage obligations, Mr.
New is also adept at the comparative analysis of differing securities. Prior to joining Hanifen, Imhoff,
Mr. New had served in various capacities at two boutique broker dealers. At these firms, he had
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functioned as associate financial advisor to municipalities and he assisted in the structuring of lease
backed, asset backed securities; in addition to general taxable fixed income sales and trading, He
attended Metropolitan State College where he majored in Business Management. He obtained his Series
7 general securities license in 1987.
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_ _ -l- MR. D./}"!.NIS GO/~l}Mt\JY., VICE PRESIDEN1~ AS$EL FINANCE GROUP .
Dennis Goldman joined Hanifen Imhoff in 1997, as Vice President of the Asset Finance Group, bringing
10 years of investment banking and capital markets experience. At Hanifen, Dennis is responsible for
advising clients throughout the securitization process and structuring asset backed and mortgage backed
transactions. Prior to joining Hanifen, he held positions as manager of a $1 billion MBS/CMO/ABS
portfolio for a major West Coast thrift, a taxable fixed income trader for a boutique broker/dealer, and a
senior consultant for investment software companies specializing in structured finance applications
focusing on ABS/CMO/CMBS structuring and analytics. In addition to both buy and sell-side
experience, he has worked with ABS market participants across the spectrum --- issuers, structurers,
rating agencies, credit enhancers, and investors. Mr, Goldman's credentials include pioneering new asset
backed deal structures while working with various reputable asset backed underwriters, innovating new
ways to analyze and price subordinate/unrated bonds, fixed income research and model development.
Mr, Goldman has a Bachelor of Science degree in Finance from The Wharton School, University of
Pennsy I vania.
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The local Hanifen team, led by Gary Akers and Jeff Larson, have served the City of Winter
Springs for a number of years and also bring first hand knowledge of the City as local residents
of the community. Mr. Larson was also a resident of the City for over 7 years. Having recently
successfully served as the lead investment bankers on the City's $7.9 million Series 1999 bond
issue, this engagement provides an opportunity to continue to serve the City as its Financial
Advisor. Considerable local support and energy, coupled with Florida and national expertise
with assessment financings, water and sewer, and general capital improvement financings, will
provide invaluable as the City continues its efforts on its current projects.
Underlying" A" Category Rating
We took the initiative on the Series 1999 issue to work extra hard to achieve, for the first time,
an underlying" A" category bond rating for the City - a testimony to its conservative fiscal
policies, balance sheet, and management. Mr. McClemore was involved in some of these
discussions which directly led to a widening of the market for the Series 1999 bond issues and
lower interest rates, saving the City an estimated 10 b.p. or $390,000 in debt service. We have
attached for your reference, a copy of the rating reports form Standard and Poor's and
Fitch/IBCA. This process requires an ongoing dialogue, and will be an important one to
continue by Hanifen and the City in maintaining its ratings and relationships with these
important institutions. As the City's Financial Advisor, we are the only firm with the current
knowledge to continue this effort.
Investment Assistance
The local Hanifen team has worked closely with City staff to analyze its investment portfolio,
make recommendations on conservative U.S. Government securities, and developed and
implemented a strategy to enhance the interest earnings on a core piece of the City's General
Fund and Transportation Impact Fee account. This work was handled locally, with the City now
positioned to continue to receive ongoing benefits - critical to maintaining its position as a low
millage City. We again are the only local firm with the knowledge of this program and are,
therefore, well positioned as the City's Financial Advisor to continue this work. We also led the
effort to arrange, and receive bids, for the investment of bond proceeds in the Construction Fund
account for the Series 1999 bond issue and introduced a collateralized flexible repurchase
agreement (" flex repo") to the City which increased construction fund interest earnings for the
Series 1999 projects.
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In addition, the local Hanifen Team has also assisted the City on numerous other bond issues to
finance projects such as:
$7,998,970 City of Winter Springs, Florida, Improvement Revenue
Refunding Bonds, Series 1999 (Senior Manager)
$6,915,000 City of Winter Springs, Florida
Water and Sewer Refunding Revenue Bonds, Series 1991
(Senior Manager)
$9,000,000 City of Winter Springs, Florida
Improvement Refunding Revenue Bonds, Series 1989
(Senior Manager)
$3,785,000 City of Winter Springs, Florida
Improvement Refunding Revenue Bonds, Series 1985
(Senior Manager)
$5,615,000 City of Winter Springs, Florida
Water and Sewer Refunding Revenue Bonds, Series 1985
(Senior Manager)
$3,505,000 City of Winter Springs, Florida
Improvement Revenue Bonds, Series 1984
(Senior Manager)
$36,818,970 Total
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STANDARD
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ISSUER: WINTER SPRINGS, FLORIDA
NEW RATING
$85 mil pub imp bnds ser 1999 dtd June I, 1999 due Oct 1,2029
Sale date: June 14, 1999
A-
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OUTLOOK: STABLE
RATIONALE
OUTLOOKThe rating on Winter Springs, Fla.'s bonds reflects a pledge of first available revenues derived from
a public service tax on electric, water, gas and telephone sales, and franchise fees paid to the city by Florida
Power Corp. in return for the right to provide electric service within city limits. The rating also reflects:
· Sound growth of the pledged revenue streams,
· Adequate bondholder protection provided by legal provisions that includes a 1.25 times (x) additional
bonds test, and
· Good coverage of maximum annual debt service as 1998 revenues provided 2.26x coverage.
Winter Springs, located 15 miles from downtown Orlando, has experienced strong residential growth and has
above-average income levels. The city's population has increased 3\ % during the la~t 10 years. The public
service tax revenue stream, as well as the franchise fee revenues stream, has seen strong growth of over 30% in
the last five years. The public service tax is currently at 8%; this provides the city with some rate-raising
flexibility as the Florida state statues allow a maximum tax rate of \ 0%. "loe tax is assessed on all water,
electric, telephone, natural gas, and propane sales made within the city. This revenue stream is concentrated
with the electric portion of the utility tax, providing 72% of the total public service tax revenues. When
combined with the franchise fee revenues, dependence upon electric sales increases to 82% of total pledged
revenues. The franchise fee agreement expires April I ,2014. Increases in the pubLic service tax revenues
should continue to provide sound coverage in the event that a new franchise fee agreement is not in effect
following that date. A lingering concern is that if the city were to bond down to the additional bonds test prior
to the expiration of the franchise fee agreement, there is the potential of constrained financial operations and
debt service coverage. Coverage of maximum annual debt service for 1998, including only public service tax
revenues, is sound at \.39x, and stronger when franchise fees are added increasing coverage to 2.26x.
OUTLOOK
The outlook reflects the strong coverage provided by both revenue streams.
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ftandard & Poor's 'iZ
A Division ofThe~mII 0mrpanUs
Published by Slandard & Poor's, a Dj\,siuQ of lOr. McGraw-Hill Companies. Inc. ExecUljveoffices: 1221 Avenue of the Americas. New York, N. Y. 10020. Editorial offices: 25 Broadway, New York. N. Y.
1()(()4. Subscriber services; (212) 208~1146, Copyright 1999 by lbe McGraw-Hili Comp.:ulies. 11Ie. ReprocJuctirnl in whcile or in part prohibited excel'll by permission.
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'Fitch Press Release - Winter Springs FL $8M Revs Rated Undrlyng , A' by Fitch IBCA
Page 1 of 1
Winter Springs FL $8M Revs Rated Undrlyng 'A' by Fitch ISeA
FITCH IBCA-NY-May 21, 1999: Fitch IBCA assigns its underlying 'A' rating to Winter Spring, FL's $8 million
improvement refunding revenue bonds, series 1999 and $12 million parity outstanding improvement revenue
bonds. The bonds will sell competitively on June 9 and mature serially Oct. 1, 1999-2029. Public service tax
revenue and franchise fees received from Florida Power Corp. secure the bonds, which are expected to be
rated 'AAA' based on an AMBAC insurance policy. The proceeds will be used to fund various capital
improvement projects within the city as well as refund the series 1989 improvement revenue refunding bonds.
The rating reflects adequate debt service coverage with a fairly stable revenue base, strong financial
performance, and positive economic indicators. Public service tax revenue includes taxes levied on the
purchase of electricity, water, telephone, gas, and propane. Historical public service tax receipts alone cover
maximum annual debt service (MADS) 1.39 times (x), In addition, the city pledges electric franchise fee
receipts. The city is currently halfway into a 30-year agreement with Florida Power Corp., which allows the city
to collect a fee equal to 6% of the corporation's revenues derived from the sale of electrical energy within the
city. This agreement will terminate prior to maturity of all outstanding bonds. Agreement renewal risk is low
given the essentiality of the franchised service and the ability to levy fees on future electric service providers.
Combined revenue of over $2,7 million in 1998 from the above listed sources provides 2.26x coverage of
MADS, which occurs in 2018. The city may issue additional bonds on parity as long as coverage remains above
1.25x.
Financial performance is strong. Consistent operating surpluses have resulted in an undesignated fund balance
equal to 26% of total expenditures and transfers out. Over 40% of expenditures are for public safety purposes
while debt service represents a modest 9% of general fund and debt service expenditures, City tax rates are
well below the state 10 mill limit at 3.6 mills and have remained stable in the past few years. Minimal future
capital needs due to substantial use of current resourcesto fund capital projects and already existent
infrastructure should keep direct debt levels manageable. Overall debt is moderate due to the overlapping debt
outstanding of Seminole County and the school board.
Located north of Orlando, Winter Springs is primarily a residential community. Population growth in the area
has been substantial over the past several years, The number of residents in 1998 had increased 28% since
1990. Unemployment in the city is below both the state and national averages with the majority of residents
commuting to neighboring Orange County or other parts of Seminole County. Wealth levels in the county are
well above both the state and national averages.
Contact: Chad H, Farrington 1-212-908-0886 and Jason F. Dickerson 1-212-908-0684 in New York.
http://www.fitchibca.comlfinanci al wire/detai l.cfm ?PRESSREL_PR_ID=24986
5/27/99
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Hanifen, Imhoff is proud of our high level of business ethics and has not been a party to any
litigation or regulatory action filed in the past five (5) years resulting from its role as an
investment banker or financial advisor to any state, local governmental or municipal entity in
Florida. Neither the firm or any of our employees are the subject to any ongoing municipal
securities investigation, a party to any municipal securities litigation or arbitration, or the subject
of a subpoena in connection with a municipal securities investigation.
In fact, it is our "no litigation" history which, along with a demonstrated work ethic and
performance track record, that has helped to fuel our office's growth to become the largest local
full service investment banking and financial consulting office in Central Florida.
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We believe that there are a number of compelling reasons to select Hanifen, Imhoff as the
Financial Advisor to the City and continue our relationship. These reasons include:
1. Experienced Local Team
In addition to the Hanifen's over 39 years of experience, the local team brings
considerable knowledge and experience from years of financing both large and small
municipal and corporate projects in Florida and across the country, Both Jeff Larson and
Gary Akers have been very active with similar financi,ngs in Florida during their over 39
years of experience and look forward to assisting the City on these important financings.
Both Mr. Larson and Mr. Akers are residents of Seminole County and very sensitive to
the City's goals and objectives. Ed Stull brings fourteen years of experience in debt
structuring and commercial banking, Carlos Pereda also brings expertise from his years at
Black & Veatch working with utility acquisitions, due diligence research, feasibility
studies, rate modeling, revenue forecasting, valuations and other analytical and technical
reports.
2. Familiaritv with the City
In addition to Jeff Larson having lived in the City of Winter Springs for a number of
years, Gary Akers has previously served the City on numerous financings - including the
issue that built City Hall. Both officers worked together and produced significant results
for the City on the recent $7.9 million Series 1999 issue. This included the notable
achievement of helping the City obtain, for the first time, an "A" category underlying
credit rating which helped to further reduce the interest rates and bond insurance
premiums on the City's bonds.
3. Proven Sales Performance - Abilitv to Help Reduce Interest Expense
When we serve as Financial Advisor, we can leverage Hanifen's over 39 years of
first hand experience in the municipal markets. This helps to insure, as the City's
selected underwriters price the various issues, that the City's Financial Advisor has the
direct knowledge of the market and can push for the lowest interest rates possible.
4. Commitment to the Florida Market and Public Finance
Recent experience and commitment to the Industry and Florida market should be
considered. While others have left the business or scaled back or closed down offices,
Hanifen, as a well capitalized, NASD member firm has expanded by establishing its
Southeast Regional Office in Orlando in 1995, and other offices across the country over
the past three years. The recent merger with Stifel, a NYSE, publicly traded firm,
provides additional strength and history due to their extensive track record since 1890.
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5. No Liti2:ation Historv
An increasing amount of cities, counties, authorities, school districts and other
institutional issuers are determining that it is important to deal with a firm and its team of
professionals that have an unblemished reputation. Hanifen's record exists because we
place the highest priority and emphasis on customer service and professional ethics.
Hanifen, Imhoffs Southeast Regional Investment Banking office continues to expand its
business in Florida and is proud of its impeccable track record. This emphasis is
evidenced by Jeff Larson's recent participation as a panelist at the Bond Buyer's 1997
Florida Public Conference addressing industry standards, SEC enforcement, MSRB rules
and yield burning issues.
6. Emohasis on Relationshios
We encourage you to contact the Florida references provided. Our growth has been due
primarily by the high level of services provided by our seasoned team of professionals.
The demonstrated track record has led to additional clients, a growth in our local office,
and very strong references. We believe that this effort has been both proactive and
responsive. '
Our business continues to grow because we emphasize, and place strategic importance
on, establishing and strengthening relationships. In short, we initiate relationships by
providing innovative, and highly professional services. We build on and strengthen
relationships by consistently providing responsive and cost effective services.
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HANIFEN, IMHOFF
FLORIDA FINANCING LIST
1995 TO PRESENT*
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Par Amount Issue Description Dated Date
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3,075,377 City ofLynn Haven, Florida, Special Project Refunding Revenue 10/01/99
Bonds, Series 1999 (Cash Defeasance) (Financial Advisor).
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3,645,000 City of Panama City, Florida, Capital Improvement Revenue 08/15/99
Bonds, Series 1999 (Financial Advisor) .
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18,000,000 Indian River County, Florida, Variable Rate Demand 07/27/99
Revenue Bonds (St. Edward's School, Incorporated Project),
Series 1999 (Financial Advisor)
7,998,970 City of Winter Springs, Florida, Improvement Revenue Refunding 07/01/9'9
Bonds, Series 1999 (Senior Manager)
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3,860,000 City of Fort Pierce, Florida, Capital Improvement Refunding 07/01/99
Revenue Bonds, Series 1999 (Sole Manager)
(Delayed Delivery/Forward Refunding)
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2,395,000 City of Wildwood, Florida, Water and Sewer Revenue Bonds, 06/28/99
Series 1999 (Financial Advisor)
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43,435,000 Seminole County, Florida, Water and Sewer Revenue Bonds, Series 06/15/99
1999 (Financial Advisor)
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6,965,000 City of Winter Haven, Florida, Capital Improvement Refunding 06/01/99
Revenue Bonds, Series 1999 (Sole Manager)
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189,100,000 Greater Orlando Aviation Authority, Airport Facilities Revenue 06/01/99
Bonds, Series 1999A (AMT) and
13,890,000 Series 1999B (Non-AMT) (Co-Manager)
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4,770,000 Osceola County, Florida, West 192 Redevelopment Area 06/01/99
Municipal Service Benefit Unit, Special Assessment Bonds (Phase
IlB) Series 1999 (Financial Advisor)
54,435,000 Osceola County, Florida, Sales Tax Revenue Bonds, Series 1999 05/15/99
(Financial Advisor)
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22,410,000 Okeechobee Utility Authority, Utility System Capital Improvement 04/01/99
Revenue Refunding Bonds, Series 1999
(Sole Manager)
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15,300,000 St. Lucie County, Florida, Limited Advalorem Tax Bonds, Series 02/01/99
1999 (Senior Manager) .
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3,755,000 City of Fort Meade, Florida, Electrical System Refunding Revenue 02/01/99
Bonds, Series 1999
(Financial Advisor)
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23,215,000 City of Palm Bay, Florida, Utility System Capital Improvement 12/01/98
Revenue Bonds, Series 1998
(Sole Manager)
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* Completed by Banifen, Imhoff or by currellt employees prior to joining Hanifell, Imhoff Tllc.
Does 1I0t illclude pending trails actio liS.
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I FLORIDA FINANCING LIST
1995 TO PRESENT*
I Par Amount Issue Description . Dated Date
47,700,000 Bay County, Florida, Sales Tax Revenue Bonds, 12/01/98
I Series 1998 (Financial Advisor)
40,0 I 0,000 Escambia County Utilities Authority, Florida, Utility System 10/0 1/98
Refunding Revenue Bonds, Series 1998D
I (Delayed Delivery) (Co-Manager)
24,060,000 Seminole County, Florida, Sales Tax Revenue I % 1/98
I Refunding Bonds, Series 1998 (Financial Advisor)
15,280,000 Village of Royal Palm Beach, Florida, Utility System Revenue I % I /98
Bonds, Series 1998 (Co-Manager)
I 46,640,000 Greater Orlando Aviation Authority, Florida 08/15/98
Airport Facilities Refunding Revenue Bonds, Series 1998
I (Co-Manager)
7,335,000 City of Pal atka, Florida, Water and Sewer System Improvement 08/0 I /98
and Refunding Revenue Bonds, Series 1998 (Sole Manager)
I 65,455,000 City of Port St. Lucie, Florida, Special Assessment Bonds, Series 07/15/98
1998A (USA 3&4 Water and Wastewater Extension Project)
I (Senior Manager)
9,020,000 Osceola County, Florida, West 192 Redevelopment Area 07/01/98
Municipal Service Benefit Unit, Special Assessment Bonds (Phase
I IIA), Series 1998 (Financial Advisor)
14,920,000 St. Lucie County, Florida, Special Assessment Refunding Bonds, 07/01/98
I Series 1998 (South Hutchinson Island Wastewater System) (Senior
Manager)
45,0]5,000 City of Winter Haven, Florida, Utility System Improvement and 07/01/98
I Refunding Revenue Bonds, Series 1998 (Senior Manager)
12,450,000 City of Mount Dora, Florida, Water and Sewer Refunding Revenue 04/0 I /98
I Bonds, Series 1998 (Financial Advisor)
7,500,000 City of Fort Pierce, Florida, Capital Improvement Revenue Bonds, 03/01/98
Series 1998 (Senior Manager)
I 62,250,000 Osceola County, Florida, Capital Improvement Revenue Bonds, 03/01/98
Series 1998 (Financial Advisor)
I 22,655,000 Charlotte County, Florida, Utility System Refunding Revenue 03/0]/98
Bonds, Series 1998 (Financial Advisor)
I 10,010,000 City of Port St. Lucie, Florida, Sales Tax Refunding & 02/15/98
Improvement Revenue Bonds, Series 1998
(Senior Manager)
I 5,345,000 Osceola Gas Tax Refunding Revenue Bonds, 01101/98
Series 1998, (Financial Advisor)
I * Completed by Ballifen, Imhoff or by currellt employees prior to joining Banifen, Imhoff Illc.
Does not include pending transactions.
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FLORIDA FINANCING LIST
1995 TO PRESENT*
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Par Amount Issue Description Dated Date
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21,610,000 City of Callaway /Bay County, Florida, Wastewater System 10/11/96
Revenue Bonds, Series 1996 A & B (Financial Advisor)
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3,000,000 Seminole County, Florida, Line of Credit, Series 1996 10/08/96
(Financial Advisor)
6,830,000 Bay County, Florida, Public Improvement Bonds, Series 1996 09/01/96
(Financial Advisor)
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141,483,068 City. of Sunrise, Florida, Utility System Revenue Bonds, Series 09/0 l/96
1996 A (Financial Advisor)
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19,130,000 Seminole County, Florida, Limited General Obligation Refunding 08/0l/96
and Acquisition Bonds, Series 1996 (Financial Advisor)
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12,180,000 City ofFort Pierce, DSRF Release - 3 old issues (Financial 07/02/96
Consultant)
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4,270,000 Longboat Key Beach Erosion Control District A, General 07/0l/96
Obligation Bonds, Series 1996 (Financial Advisor)
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1,605,000 City of Orange City, Florida, Utility System Improvement Revenue 06/25/96
Bonds, Series 1996 (Senior Manager)
43,155,000 City of Sunrise, Florida, Utility System Revenue Refunding Bonds, 06!l5/96
Series 1996 (Financial Advisor)
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4,210,000 Osceola County, Florida, Special Assessment Bonds, Series 1996 06/01/96
(Financial Advisor)
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11,560,000 City of Panama City, Florida, Water and Sewer Revenue Bonds, 06/01/96
Series 1996 (Financial Advisor)
25,750,000 Seminole County, Florida, Sales Tax Revenue Bonds, Series 1996 05/01/96
(Financial Advisor)
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21,231,029.90 City of Port St. Lucie, Florida, Utility System Revenue Bonds, 04/25/96
Series 1996 (Sole Manager)
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8,210,000 City of Port St. Lucie,'Florida, Special Assessment Bonds, Series 04!l8/96
1996A (Senior Manager)
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6, I 00,000 City of Oviedo, Florida, Utility Revenue Bonds, Series 1996 03/0 l/96
(Financial Advisor)
9,080,000 City of Port St. Lucie, Florida, Local Option Gas Tax Revenue 01!l5/96
Refunding & Improvement Bonds, Series 1996 (Sole Manager)
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10,500,000 Mississippi Business Finance Corporation, Taxable Industrial 1995
Development Revenue Bonds (Catalina Lighting Project), Series
1995 (Sole Manager)
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* Completed by Banifen, Imhoff or by current employees prior to joining Banifen, Imhoff Inc.
Does not include pending transactions.
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HANIFEN, IMHOFF
FLORIDA FINANCING LIST
1995 TO PRESENT*
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Par Amount Issue Description Dated Date
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2,350,000 Volusia County Industrial Development Authority Industrial 1995
Development Revenue Bonds (Daytona Plastix Project), Series
1995 (Sole Manager)
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19,700,000 Southeast Vol usia Hospital District Revenue Bonds, Bert Fish 1995
Medical Center Issue, Series 1995 (Co-Manager)
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15,500,000 St. Lucie County, Special Assessment Bonds, (South Hutchinson 10/03/95
Island Wastewater System), Series 1995 (Co-Manager)
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19,295,000 Okeechobee Utility Authority, System Acquisition and 09/15/95
Improvement Bonds, Utility Revenue, Series 1995 (Senior
Manager)
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3,820,000 City of Orange City, Florida, Utility Refunding Revenue Bonds, 09/12/95
Series 1995 (Financial Advisor)
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8,630,000 Melbourne Airport Authority, Florida, Forwarded Revenue 08/29/95
Refunding Bonds, Series 1995 (Financial Advisor)
7,120,000 Panama City, Florida, Capital Improvement Revenue Bonds, Series 07/18/95
1995 (Financial Advisor)
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8,500,000 City of Sunrise, Florida, Revenue Notes, Series 1995 (Financial 05/18/95
Advisor)
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3,890,000 City of Port St. Lucie, Florida, Sales Tax Revenue Notes, Series 05/15/95
1995 (Sole Manager)
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2,740,000 Volusia County, Florida, Special Assessment Bonds, Series 1995 04120/95
(Financial Advisor)
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* Completed by Banifen, Imhoff or by current employees prior to joining Banifen, Imhoff 111C.
Does not include pending transactiollS.
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Hanifen, Imhoff's capital position as of November 1999 was:
$7,148,429
$4,378,554
$3,294,598
Prior to the merger with Hanifen in January 2000, the Total Capital for Stifel Financial Corp.
(NYSE:"SF') as of December 31, 1999 was approximately $59.1 million (please see attached
Stifel news release). For more information on Stifel, we would refer you to our Web page
..www.stife1.com ".
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Stifel Financial Corp.
Reports Fourth Quarter Diluted Earnings Per Share of $0.25
Earnings Per Share Up 79% Over 1998 Fourth Quarter
Record Annual Revenues
Sf. Louis, Missouri, January 31, 2000 - Stifel Financial Corp. (NYSE: "SF") today reported net
income of $1,703,000, or $0.25 per diluted share, for the quarter ended December 31, 1999, compared to
$1,002,000, or $0.14 per diluted share, for the comparable quarter of 1998. Total revenues for the fourth
quarter were a record $40.8 million, compared with $33.1 million in the corresponding period a year ago.
For the year ended December 31, 1999, net income was $7,165,000 or $1.03 per diluted share,
compared with $5,245,000 or $0.73 per diluted share for 1998. Total revenues for 1999 were a record
$151.2 million, compared with $137.3 million the previous year.
At December 31, 1999, the company's equity was $59.1 million, resulting in book value p~r share of
$9.18. During 1999, the company repurchased 576,165 shares, using existing board authorization, at an
average price of $9.44 per share.
For the quarter, total revenues increased 23%. The firm's continued t:xpansion of its private client
group contributed to the increase in revenues from commissions and principal transactions of 14%, while
investment banking revenues increased 76% and interest revenue increased 48%, all compared to the prior
1998 fourth quarter.
Total expenses increased 21% in the fourth quarter. Employee compensation and benefits
increased 15%, which was lower than the percentage increase in operating revenues. Increases in
communications and occupancy of 2% and 19%, respectively, were the result of the firm's expansion in its
private client group and investment in new technology.
President and Chief Executive Officer, Ronald 1. Kruszewski, and Chairman of the Board, George
H. Walker, commented, "We are pleased with our most recent quarter and the progress made over the
past year. During 1999, we opened 11 new offices and added 102 investment executives and independent
contractors. Also, the recent merger with Hanifen, Imhoff will strengthen our fixed income and equity
capital market groups, Our growth has validated our ''OJ Choice" stratef,'Y, and we are optimistic that our
strategic investment in associates and technology bodes well for the future."
Stifel Financial Corp. is a financial services holding company whose subsidiaries are engaged in
general securities brokerage, investment banking, and money management with locations in 17 stat{:s,
primarily in the Midwest. To learn more about Stifel, please visit the Company's' web site at
www.stifel.com.
(table attached)
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Number of Shares for Earnings Per Share Computatiolls:
Basic Shares 6,485 6,871
I Diluted Shares 6,822 7,102 I
Note: All shares and earnings per share amounts reflect the 5% stock dividend declared January, 1999.
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6,655
6,926
6,850
7,198
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We have provided the following references where we have served as either Financial Advisor or Senior
Manager on recent Florida financings.
SEMINOLE COUNTY
Ms. Cindy Hall
Director of Fiscal Services
1101 East First Street
Sanford, Florida 32771
Phone: (407) 321-1130
Fax: (407) 665-7183
OSCEOLA COUNTY
Mr, John Ford
Assistant County Manager
17 S. Vernon Avenue
Kissimmee, Florida 34741
Phone: (407) 343-2387
Fax: (407) 343-2381
CITY OF PORT ST. LUCIE
Mr. Frank Blackwell
Finance Director
Mr, Don Cooper
City Manager
121 S,W. Port St. Lucie Blvd.
Port St. Lucie, Florida 34984
Phone: (561) 871-5189
Fax: (561) 871-5203
CITY OF PALM BAY
Ms. Dona Newman
Finance Director
Mr. Dan Greenfield
Deputy City Manager
120 Malabar Road, Southeast
Palm Bay, Florida 32907
Phone: (407) 952-3400
Fax: (407) 952-3401
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CITY OF WINTER HA VEN
Mr. Calvin Bowen
Finance Director
Mr. Carl Cheatham
City Manager
451 3rd Street N.W.
Winter Haven, Florida 33883
Phone: (941) 291-5613
Fax: (941) 297-3027
CITY OF DELTONA
Mr. Fritz Behring
City Manager
800 Deltona Blvd.
Deltona, Florida 32728
Phone: (407) 860-7160
Fax: (407) 860-7167
BAY COUNTY
Mr, Joey Rogers
Finance Director
240 E. Fourth Street
Panama City, Florida 32401
Phone: (850) 747-5215
Fax: (850) 747-5212
CITY OF FORT PIERCE
Mr. George Bergalis
Finance Director
100 N. U.S. Highway 1
Fort Pierce, Florida 34954
Phone: (561) 460-2200
Fax: (561) 489-2594
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OKEECHOBEE UTILITY AUTHORITY
Mr, Jim Paul
Finance Director
100 S,W. 5th Avenue
Okeechobee, Florida 34972
Phone: (863) 763-9460
Fax: (863) 763-9036
CITY OF MOUNT DORA
Ms. Carol Rogers
Finance Director
510 North Baker Street
Mount Dora, Florida 32756
Phone: (352) 735-7119
Fax: (352) 383-4801
CHARWTTE COUNTY
Mr, Tommy White
Chief Deputy of Board Services
18500 Murdock Circle
Port Charlotte, Florida 33948
Phone: (941) 743-1413
Fax: (941) 743-1420
We would be pleased to provide additional references upon request.
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Service Approach
On the following pages, we detail our general approach to providing financial advisory services
for a typical transaction. In developing this approach, our intent is to provide a broad range of
professional advisory services, allowing us to achieve the most efficient financings in terms of
both issuance costs, net interest cost and structuring flexibility to the City.
Hanifen, Imhoff is prepared to provide the following services as they relate to typical
transactions.
I. ISSUE DEVELOPMENT SERVICES
Our assistance in the development of bond issues or other forms of financings includes at least
three phases: planning and development, marketing, and closing. These services are provided, as
appropriate, regardless of whether a competitive or negotiated sale is pursued. We are prepared
to immediately commence work for the City upon being selected as the City of Winter Springs
Financial Advisor.
Planning and Development Phase
. Research and advise on aspects of tax exemption, financing structure and arbitrage In
cooperation with the City's legal counsel and bond counsel.
. Assist in the preparation and analysis of rate or feasibility studies in cooperation with the
City's staff, bond attorneys, accountants, engineers and other professionals as requested by
the City.
. Carefully analyze the financing to determine the best methods of strengthening its
marketability consistent with current economic, capital market conditions and increasingly
stringent rating agency criteria and bond insurer requirements. This may involve the use of
municipal bond insurance, surety bonds, letters of credit or other credit enhancement devices.
. Perform a comprehensive analysis to determine the best possible plan of finance or
refunding. Each issue must be analyzed on merits, including a market test to determine its
marketability. Given the breadth of our team's experience base, the options reviewed
will include bridge, bank, structured finance and bond financings.
. Consult with Moody's, Standard & Poor's and/or Fitch Investors Service with regard to the
proposed financing and assist in obtaining, or maintaining, the most favorable rating
possible. Assist the City with preparation of an effective presentation, if necessary.
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· Submit applications to Municipal Bond Insurers for the purpose of securing a commitment
for a policy of insurance for the bonds. Analyze benefits of debt service reserve surety
policy compared to fully funded debt service reserve fund.
· Evaluate the economic benefit of insuring or not insuring the bonds. Evaluate and determine
benefits of obtaining underlying rating if the bonds are to be insured.
· Provide assistance and recommendations with the selection of ancillary service providers
such as registrar, trustee, escrow agent, verification agent and printer.
. Act as liaison with bond counsel and disclosure counsel and coordinate other professionals
providing information in connection with the proposed financing.
· Prepare a timetable of events for all concerned leading to the successful sale and delivery of
an offering.
Marketing Phase
. Advise on the appropriate terms and conditions of the sale, including maturity schedule,
underwriter's discount and redemption provisions. If issue is sold competitively, advise on
interest rate bidding requirements and basis for award.
· Assist in selection of, and negotiations with, underwriters, if issue is sold on a negotiated
basis.
. Advise on the timing of the sale, taking into consideration such factors as changing economic
conditions, existing supply and demand, current and projected market trends and
convenience to the City.
. Coordinate with bond counsel the preparation of authorizing resolutions and other documents
involved in the sale of bonds or other methods of financing.
. Assist the City in meeting full disclosure requirements (including working with Legal
Counsel to insure that continuing market disclosure requirements (15c2-12) are met) and in
conforming to guidelines in preparation of the Official Statement.
. Distribute the Preliminary Official Statement and Final Official Statement to potential
purchasers of the City's securities across the nation. Maximize efforts to market the City's
debt issuance most effectively. For a competitive sale, directly contact those lead
underwriters most likely to be syndicate managers. Advertise the issue in nationally
prominent financial publications, in addition to coordinating local publication requirements.
. Participate, as deemed appropriate, in informational meetings with the investment
community, banks (when appropriate), including investment bankers (dealers and dealer
banks) and institutional investors (banks, bank holding companies, and insurance companies)
in New York and elsewhere to establish interest on the offering.
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· Evaluate bids and make recommendations on the adequacy of the bids for competitive sales.
Issue Closing Phase
. Assist with issue closing details, including coordination with bond counsel, disclosure
counsel and underwriters in order to ensure delivery in the shortest possible time frame.
. Furnish prompt, complete reinvestment analysis (including review of available options) so
that interest income from the investment of bond proceeds can be maximized. Provide
assistance to staff and the consulting engineer in development of comprehensive construction
draw schedule.
. Solicit bids on investment of idle funds, if requested.
After the sale, Hanifen, Imhoff will prepare a Postsale or Comparison Pricing Analysis which
will confirm the information presented to the City staff on the sale or pricing date. The Postsale
or Comparison Pricing Analysis will include financial debt schedules, a tabulation of bids
received, a comparison of the winning bid or final negotiated pricing with similar issues, an
analysis of the compensation generated by the purchaser and discussion of other matters of
importance to the issue.
II. TRANSACTIONAL INVESTMENT INFORMATION AND ADVICE
Our Fixed Income Sales and Trading area, along with the Equity Sales staff, is active daily in the
markets with the full range of taxable and tax-exempt securities. We would plan to continue our
current work with the City in the investments area. This includes being available to discuss and
recommend procedures for bids, handle these for the City and leverage our capabilities on a day-
to-day basis to safeguard the City's funds while also maximizing investment returns and
contributions to the budget and general fund. The various types of "permitted investments" per
Florida Statutes and those allowed under existing bond documents would be reviewed and a
Comparative Analysis done for these different securities. An "investments workshop" for the
Staff, new Finance Director, when selected, and the City Commission is sometimes a good idea
to demonstrate that this area is receiving the due attention. We would be pleased to help set this
up and bring in the appropriate members of the Hanifen team.
Portfolio Analvsis
Since our firm has served as the SBA equivalent in Colorado (with over $1 Billion under
management), we could leverage these skill sets and capabilities into some direct analytical
portfolio reviews. These might include, but not be limited to;
a. Relative Value Analysis - Looks at the existing portfolios, makes determination after review
or update of Investment Policy, to rebalance the portfolios to better reflect the investment
objectives and risk/return parameters. This usually results in some Buy or Sell
recommendations to the Investment Committee or City staff as the portfolio is rebalanced to
meet the new market conditions and objectives. This might also include some Historical
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Spread analysis to see how the portfolio has behaved in the past, perhaps, as a forecast of
future movements. It is also better to know and understand the risks and tradeoffs of various
securities by seeing how historical rate movements have affected the given security being
held or already in the portfolio and this may not have been reviewed like this in the past.
b. Option Adiusted Spread Analysis - This applies to some of the callable, or non-callable
backed securities that the City has or may want to consider. The analytics look at the gross
spread of the securities, and separates the call option feature to see the true spread
relationship to a straight Treasury security.
c. Horizon or Scenario Analysis - This allows the City to look to see how the portfolio would
have traded, say, a 1 year period. This is often critical for the budgeting period and for audit
purposes to see how, for example, 300 basis point swings in the market would affect the
portfolio and the public's/insurers/rating agencies' view of it.
d. Sensitivity Analysis - Where the horizon analysis gauges a portfolio's movements over time,
this would provide the ability to see a snap shot in time, or, for example, what the portfolio's
position would be if the Federal Reserve Open Market committee decide to tighten by raising
the Fed Fund and Discount Rates by 50 basis points.
III. REVIEW/ANALYSIS OF FINANCIAL PROPOSALS
The City of Winter Springs can expect to receive solicited and unsolicited proposals from banks,
underwriting firms, insurance and investment providers and other professionals in the field for
products, services and financial transactions that are designed to increase revenues or provide
innovative solutions to financing dilemmas. These proposals typically include the use of non-
traditional financing techniques such as various lease options, variable rate obligations, asset
transfers; investment contracts, derivative features and joint public/private ventures.
Hanifen, Imhoff has substantial experience in assisting our clients with the evaluation of these
proposals. Drawing upon our knowledge of programs and proposals we have analyzed for
clients across the country, Hanifen, Imhoff can facilitate decisions on these proposals by
providing a thorough analysis of a proposal's feasibility. The analysis helps to determine the
primary objectives of the proposal, its advantages and disadvantages, and its anticipated fiscal
impacts. This is accomplished in cooperation with staff and the firm submitting the proposal,
and typically culminates in the production of a written report. We would expect to present and
discuss our analysis with appropriate City officials and staff. If the proposal was unsolicited, we
assist in deciding whether or not to send a request for proposal to other firms.
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FEE IJI{OPOSAL
--- - --------4- - ----__ -. -. _ . __~___._....__... _.. _ _____ .. . ____. ______ __ __~__ _.__ __ ___ __ _ .
HOURL Y COMPENSATION
If selected by the City, Hanifen would be prepared to work entirely on an hourly basis.
In addition, and if so directed by the City on an ongoing basis, the Consultant also agrees to be
available to advise the City from time-to-time for additional service compensation as to
budget/planning matters, site development, tax matters, economics and community development,
referendum issues, investments and long-range capital planning. If the Consultant assists the
City in these areas or designs a capital improvement financing plan or strategic operating plan at
the request of the City, the Consultant shall be paid on an hourly basis for all time expended by
its personnel. The hourly rates shall be as follows:
Managing Director or
Senior Vice President:
Vice President,
Assistant Vice President or,
Senior Analyst:
Associate or Administrative Assistant:
$ 165.00/Hour
140.00/ Hour
75.00/Hour
RETAINER
We propose that a retainer be negotiated with the City based on the anticipated level of services
required. Such retainer will be paid monthly. Hourly charges will first be reduced by the
retainer paid. Any excess above the annual retainer will be billed at the time such charges
exceed the annual retainer at the rate schedule provided above.
INVESTMENTS
To be negotiated based on current market conditions for comparable investments.
OUT -OF-POCKET EXPENSES
Reimbursable out-of-pocket expenses will include the following items and other miscellaneous
expenses approved by the City.
. Travel and Lodging
. Courier Service
. Facsimile ($2.00 per page)
. Photo Copies ($.20 per copy)
. Long Distance and Conference Telephone Charges
. 3rd Party expenses such as advertising incurred on behalf of the City
. Other as approved by City and per Florida Statute
We would be pleased to discuss this further with the City to determine a satisfactory
compensation schedule for the level of services desired by the City.
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The local Hanifen team has recently served a number of comparable municipalities on their
needs, related financings, bond insurance and bond ratings including the cities of Winter Springs,
Port St. Lucie, Fort Pierce, Fort Meade, Palm Bay, Pal atka, Winter Haven, Mount Dora, and
Panama City to name a few. All of these presented complications and challenges, but were
successfully closed on time and under budget. This required a concerted focus, an understanding
of our client's objectives, and our excellent track record with the bond insurers and rating
agencies - all skill sets that Hanifen will leverage to the City's benefit on this engagement.
COST SAVINGS
In many of the above referenced cases, and others (i.e. Winter Springs, Seminole County, Palm
Bay, Port St. Lucie, Bay County, Charlotte County, Osceola County, Okeechobee Utility
Authority, etc.) we were able to negotiate significant cost savings on bond insurance. As with
the City, we were also able to achieve first time, "underlying" credit ratings in the "A" category
for a number of Florida clients. In addition to the "AAA" rating from the bond insurer, a
municipalities' underlying "A" category rating, if proactively marketed, provides additional
credit strength in the eyes of the investors AND, therefore, helps to further reduce the level of
interest rates. In the City's case, this produced estimated savings of around 10 b.p. or $390,000
on the Series 1999 issue. The Hanifen team also negotiated an insurance premium with the bond
insurer that produced additional savings.
We have provided below some other examples for your reference.
RA TING UPGRADES - MAINTAINING NEW UNDERLYING RATINGS
This is an area of strength for Hanifen. Whether serving as financial advisor or underwriter,
contacting the rating agencies, bond insurers, and our references and other clients will indicate
that this is an area of demonstrated performance for our team, There is a great amount of effort
here, which has consistently produced well received, well structured financings and considerable
savings. Jeff Larson brings his debt underwriting and credit approval experience from his
banking years, and structural knowledge from a variety of Fortune 1000 and Public Finance
financings across the country. Gary Akers has served major Florida issuers as Financial Advisor
for over 20 years. Ed Stull brings extensive credit experience in the governmental market. Nate
Ec kl off, as a member of the Bar and National Association of Bond Lawyers (NABL) , brings
incredible insight into various structures from the tax, arbitrage and legal areas. There is
probably not a type of financing structure, cashflow model or stream of pledged revenues
that this local team has not either analyzed or recommended. All of this provides the City
with a deep and well balanced team that produces results.
1. City of Winter Springs, Florida
The Hanifen Team led the effort for the City in obtaining its "A" category underlying
rating for the first time. In addition to producing the debt service savings mentioned
above, this rating achievement also set the foundation for every other new money or
refunding issue that the City will do. Managing and reducing costs will continue to be
the focus for Hanifen as we look forward to assisting the City with i,ts other financings.
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2.
City of Winter Haven, Florida
One recent and comparable example is the City of Winter Haven. Embarking on a
$45,000,000 utility acquisition and strategic capital expansion program, this heretofore
"sleepy" city in Polk County retained Hanifen as Senior Managing Underwriter to assist
with the financing - in huge part due to its prior track record in Florida on other utility
acquisitions, our strong references with other professionals, the rating agency and bond
insurer community, and no litigation history. .
The City had previously issued approximately $10 to $15 million in bonds and was not
very knowledgeable about this process, or the importance of obtaining an underlying
rating. The Hanifen led team was able to obtain an "A" underlying rating from two
of the nationally recognized agencies. This underlying rating, along with the AAA
from the Bond Insurer (MBIA) was published and resulted in lower interest rates and
over $760,000 in debt service savings. In addition, we negotiated a bond insurance
premium that saved an additional $240,000, producing in aggregate over $1 million
savings to the City. These savings were in addition to the refunding of the existing three
Series which achieved by themselves over 10% present value savings (as compared with
the GFOA guidelines which recommend a minimum target of 3% PV Savings).
3.
City of Palm Bay, Florida
Another comparable, recent example was the Hanifen led team's work with obtaining a
bond insurance premium at 50% of the estimated cost, producing savings in excess of
$120,000 and negotiating an "A-" underlying rating from Standard & Poor's. The "A-"
rating allowed the bonds to be sold to a much broader, and risk adverse, cadre of
investors thereby saving an estimated 5 basis points or approximately $330,000 in debt
service costs.
4.
Seminole County, Florida
Over the past twelve years as financial advisor, Gary Akers has worked with the staff and
the various rating agencies to increase the County's General Obligation rating from Baa
to AA from Moody's Investor Service and to AA- from Standard & Poor's. This has
been a continuous process involving numerous meetings and discussions with the rating
agencies and the County in order to identify credit challenges and work to meet the
criteria for upgrading the rating.
5.
Other Examples
Other examples include rating applications and presentations for Bay County's Resource
Recovery System, Bay Medical Center, Okeechobee Utility Authority, City of Port St.
Lucie, State of Colorado, and Osceola County's Sales Tax just to mention a few.
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City of Winter Springs, FL
Proposal for
Financial Advisory Services
RFP-006-00 / CD
March 15, 2000
Public Financial Management
Suite 720
201 South Orange Avenue
Orlando, FL
32801-3470
407 648-2208
407-648-1323 fax
www.pfm.com
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" II {FM
There are few, if any
jobs in which ability
alone is sufficient.
Needed, also, are
loyalty, sincerity,
enthusiasm and
team play.
-William B. Given, Jr.
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Financial Statement
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Suite 720
201 South Orange Avenue
Orlando. FL
32801.3470
407 648.2208
407648.1323 fax
www.pfm.com
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--
"===- Public Financial Management
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Financial and Investment Advisors
AprilS, 2000
Gene DeMarie
Director of General Services
City of Winter Springs
1126 East State Road 434
\'{linter Springs, FL 32708-2799
Mr. DeMarie:
I am responding to your letter dated March 27, 2000 requesting a clarification of our fee proposal. Public
Financial Management Inc. does not require a retainer. Our fee on a "$ per bond" basis consists of (i) base
fee of $4,500, plus (ii) $0.50 per $1,000 of bonds. For Bonds the minimum fee is $7,500. Please note that
for small fmancings it may make more sense for the City to pursue alternate fmancing structures (bank loans,
private placements, etc.) Our fee for these transactions can be reduced below the minimum fee.
Thank you for the opportunity to work with the City. If you would like to discuss other fee arrangements or
have further questions regarding our proposal please feel free to call me at (407) 648-2208.
Sincerely,
Public Financial Management
12'- '"}
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David M. Moore
Senior Managing Consultant
ii>~", .~.
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CITY OF WINTER SPRINGS, FLORIDA
1126 EAST STATE ROAD 434
WINTER SPRINGS. FLORIDA 32708-2799
Telephone (407) 327.1800
March 27, 2000
David M. Moore
Senior Managing Consultant
Public Financial Management
201 South Orange Avenue, Suite 720
Orlando. Florida 32801
Mr. Moore;
The City has received two (2) very qualified proposals to serve as Financial Advisor to the City.
The City is requesting the firms resubr;nit their proposed fees based upon the successful issuance
of debt; should the City require advice other than for debt issuance then the proposed hourly
rates previously quoted will be.used, This quote should include all services rendered in
connection with the issuance of debt including, but not limited to, review of all documents required
in connection with the issuance of debt, assistance with offering documents, rating or insurance
presentation material, attendance at all City Commission meetings related to the debt issuance,
advice regarding the method of sale, review of any and all bond purchase agreements and other
matters in connection with the issuance of debt.
1. Do you require a monthly retainer? YES NO
2. If YES. how much?
3. Is the retainer credited against a per bond or debt fee? YES_NO_
4,. Fee quote per bond or debt iSSl!ance: .
Amount
0- $1 million
$'1" - $3 million
$3 - $5 million
$5 million and above
Please quote either a minimum fee or fee per $1,000 of borrowings.
Please fax this proposal to the undersigned at 407-327-4753 on April 7, 2000.
Gene DeMarie
Director of General Services
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~PFM
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-:: Public Financial Management
-- Financial and Investment Advisors
Suite 720
201 South Orange Avenue
Orlando. FL
32801-3470
407 648-2208
407 648-1323 fax
www.pfm.com
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March 15,2000
I
Mr. Gene DeMarie
Director of General Services
City Hall
1126 East State Road 434
\'(linter Springs, Florida 32708
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RFP-006-00 / GD
Dear Mr. DeMarie:
I
Public Financial Management, Inc. ("PFM") is pleased to submit our proposal to serve as Financial Advisor
to the City of Winter Springs, Florida (the "City"). We are confident that you will find that the breadth of our
experience involving cities and the depth of our financial planning expertise make us the most qualified firm
to serve as your financial advisor. Our team's unmatched resources for financial planning, transaction
management, and investment advice will provide the City with the highest level of financial services available.
The close proximity of the PFM team allows us to be committed to the City and available to be at your door
quickly.
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Mr. David Moore, a Senior Managing Consultant, will serve as PFM's day-to-day contact for the City and has
been responsible for this proposal response.
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David Moore, Senior Managing Consultant
Public Financial Management
201 South Orange Avenue, Suite 720
Orlando, FL 32801
(407) 648-2208 phone
(407) 648-1323 fax
m oored@publicfm.com
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On the following page we include an Executive Summary highlighting our unique qualifications and
approach, W/e believe that these considerations, as more fully presented in this proposal, will convince you of
the quality of service that PFM offers the City, We look forward to the opportunity to serve as your Financial
Advisor.
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Thank you for your consideration of our proposal.
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Sincerely,
Public Financial Management, Inc.
jj~ 1(. fI(-
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David M. Moore
Senior Managing Consultant
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Executive Summary
Winter Springs is a unique City located in one of the most dynamic growth areas of Florida. With the
completion of the Greene Way, the City's long standing reputation as a desirable residential area is enhanced
as accessibility to employment centers throughout the metropolitan area have increased, More transportation
corridors also open the City to a wide range of commercial and retail development further strengthening the
City's economic base.
Public Financial Management Inc. (PFJ\1) has a unique approach to rendering financial advisory services that
blends well with the City's growing economy. At PFM we believe capital and strategic planning are more
than a formality leading to debt issuance, Unlike many of our competitors who often view strategic planning
as a "nuisance required to justify a financing", we believe this service is often more important than the
eventual financing. This approach is so vital to our philosophy that PFM created a team dedicated specifically
to Strategic Municipal Consulting. This team assists clients with tasks as small as reviewing organizational
issues to as large as solving the $300 million structural deficit for the City of Philadelphia. While the need for
these services may be very limited for the City of Winter Springs, our approach to advising the City on
planning issues related to the Town Center project or other initiatives will be based on this perspective.
The following proposal introduces you to PFM and our extensive experience as highlighted below:
Industry
Leadership
The PFM team offers the City the most experience. PFM ranked first in Florida
and the nation during 1998 and 1999. PFM completed over $1 billion in Florida
fmancings last year; four times the volume of our nearest competitor in Central
Florida,
Independence
PFM is 100% independent As a result we have no conflicts of interest and a
common, consistent financial advisory philosophy.
Credit Expertise
We have created and successfully implemented unique credit structures using special
assessments, impact fees and tax increment revenues, Our strategy is to develop a
sound financing plan enabling the City to access the capital markets at the lowest
cost while maximizing financing flexibility.
We developed and implemented the credit rating agency strategy that led to two of
Florida's three "AAA" rated entities to obtain upgrades to the highest rating
category. Our firm assists over 100 clients manage the rating agency process each
year.
Experienced Team David Moore will manage this team, In last two years he has served as financial
advisor on more than $800 million in Florida fmancings. Hugh Marble and
Rebecca Peterson will assist Mr. Moore on this engagement Both have extensive
technical experience structuring fmancings, This team has more financial advisory
experience in Florida than any of our competing f1nI1s. PFM's Orlando office is
staffed by seven professionals each with special expertise that is available to the City
at any time. Our team has worked on virtually every type of financing ranging from
general obligation bonds to leveraged leases.
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Technical
Resources
The technical resources in our Orlando office exceed that found in most of our
competitors entire ftnns. PFM's Quantitative Strategies Group leads the entire
public finance industry-not just financial advisors-in creating and implementing
the most complicated fmancing plans including forward refunding, swap and tender
programs.
Market Access
Investment banks often suggest that an independent financial advisor is at a
disadvantage when pricing bonds because they do not have a trading desk. While
that may be true for smaller finns, PFM sells over 300 financings per year; far more
than all but the largest investment banks. We are in the market five to ten times per
week. As a result we use first hand, real-time market information to assist in pricing
our clients fmancings. While many finns, including smaller underwriters, rely
exclusively on second hand wire service information in an era where minutes can
cost issuers thousands of dollars.
As the nations largest fmancial advisor, PFM brings to the City immense resources. However, it is the
personal commitment of our team that adds value to the fmancial advisory relationship. David Moore, the
manager for this engagement, grew up in Seminole County and has lived in Central Florida for over 30 years.
He is committed to ensuring that all of PFM's resources are available to the City on a day-to day basis and
will use these resources to ensure the City obtains the highest quality, independent advice.
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Table of Contents
Firm Profile
I
Experience and Expertise
Case Studies
II
III
IV
V
VI
Personnel
Litigation Statement
Financial Statement
References
VII
VIII
Fee Proposal
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The financial advisory
business is a business of
ideas. PFM's culture is
designed to explore these
ideas and push them to
the limits of their
effectiveness. It is these
ideas, rather than our
resume that sets us apart
from our competition.
Firm Profile
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History of the Firm
Public Financial Management, Inc. ("PFM") was founded in 1975 on the
principle of providing sound independent financial advice to state and local
governments, Today PFM is the nation's leading municipal financial and
investment advisory firm with offices throughout the United States.
PFM has three primary business activities: (I) transaction management
related to debt issuance; (iI) investment advice and portfolio management for
bond proceeds and working capital; and (iii) strategic consulting related to
operating and capital budgets, With this comprehensive orientation, PFM is
unique among financial advisors in that it is involved in all aspects of a
government's finances.
PFM does not trade or underwrite securities. PFM serves only one interest-
that of its clients. PFM is involved in the capital markets on a daily basis and
offers its clients professional resources which equal or surpass those of any
investment banking firm without the conflict of interest that underwriting firms
bring to the table. PFM's only business is providing financial, investment and
consulting advice to its clients.
Financial Advisor
As a financial advisor, PFM engages in capital planning, revenue forecasting
and evaluation, resource allocation, debt management policy, and debt
transaction management (including structuring, documentation, and
execution), PFM delivers a depth of experience and skill that helps clients
resolve the myriad of technical and financial issues that are routinely
confronted during the capital formation process. PFM's national reputation
and its consistent growth in business activity from $5 billion in debt
management transactions in 1986 to $18.4 billion in 1998 reflects our clients'
recognition of our capabilities and value.
Investment Manager
As an investment manager, PFM brings a comprehensive spectrum of
services to the business of money management. PFM manages both state-
oriented investment pools and individual client portfolios designed to earn
competitive yields while maximizing safety and liquidity. Services include
timely and market driven portfOlio management, portfolio design, state-of-the-
art accounting and arbitrage rebate calculation services. The value of this
service to clients is evident in the growth of assets under management from
$1 billion in 1986 to over $12 billion in 1999.
Strategic Consultant
As a strategic consultant, PFM brings its clients the most effective capital and
operating budget advice available, Techniques for performance
management, benchmarking, revenue enhancement, and privatization are all
areas in which PFM has a proven track record, Since 1993, PFM has helped
clients eliminate billions of dollars of projected budget deficits without
increasing taxes or reducing services.
City of Winter Springs - Proposal for Financial Adviso'Y Services 11
Aii\lF-
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Organization
PFM is composed of advisory groups targeted to both specific government
businesses and geographic regions, which operate through the use of project
teams. This approach to problem solving facilitates close working
relationships among our many professionals, We provide service to our
clients by organizing the most efficient and knowledgeable team of PFM
professionals to serve each client's specific needs.
PFM's flexible project-oriented approach to staffing engagements enables us
to bring the proper mix of resources and experience to bear on a given
client's problem or transaction. We can develop solutions to our clients'
concerns that are responsive to multiple constituencies, The project-oriented
approach also facilitates the development of close working relationships
among our many professionals. This approach fosters information sharing
and innovation, enhances junior staff mentoring and otherwise accelerates
professional development.
City of Winter Springs - Proposal for Financial Advisory Services I 2
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Services Offered
PFM offers its clients a complete scope of services to meet all of their
financial needs, We develop innovative financing solutions for our clients'
problems, and lead the public finance industry in the introduction of financing
techniques designed specifically to enhance governmental access to the
capital markets, As a national firm, PFM is able to offer an unrivaled breadth
of experience and market expertise. As previously described, our scope of
services is structured into three areas:
Scop e of Services
~ln8nc181 Advisory
'! ~ervlces
Financing Schedule, :
DI~pf structuring
;, N!egotiate.dvs.
Competitive
F.inancing T earn i ",
:~~Iection '.
: Fh1ancing A1tematlves.
:'Financing Terms
. ,
Dral! Documents;
il .. . ,
: fy1arketi rg Plan
Ratirg P reser1lation
Bond P ridng
jGlosing
I':'
:Refunding Verificalial
Servic:es '
. .
, .
. StrateQic COnsulting
t _I ,
Policy Developmert
~ Debt C apadty
:C8pit~IBudget ., "
Com petitive C ontra::ting ,;
Benc:hmarkirg
Performance
Measurement
lr..estnBrt
. MBnagetnlnt
,
Fix8d~ncOm e Portfolio:
Management
Cash Management', ,
BondPl'Oceeds ' :'"
Investment Management:
... ~ _ - ~ i; ~
Policy Deveh:pm er1I
'II' '.
: Cash ~I owF orecaSting
Escrow
stlilcturi ngfRestl\JctY'ing
structured Investment
P I'Oducts
A.r1:litrage R ebet e
eom'pliance
ACcourt ingl " ,
:Recordkeeping Ser..,;;des
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Targeted Budg~ing
SeCuritization of .
Delinquent Assets
J,. . 'i,
Lalxlr strategies
Reverue E rhancem ent
,I", "
strategic Municipal '
Consulting
: Lease N e!J)t1 a1ion
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At the same time, given the number of transactions we manage each year,
PFM also has a broad and deep network of capital market professionals with
which we interact. This network of investors, underwriters, bankers, credit
specialists and lawyers facilitates the transaction management process, to
our clients benefit. As the largest financial advisory firm, PFM has the ability
to solve our clients' intractable problems by using our market power to move
the agenda. Our constant participation in the markets only serves to further
enhance our ability to do so.
Total PFM Assets Under Management
1988-1999
dollars in millions
3,500
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City of Winter Springs - Proposal for Financial Advisory SelVices I 3
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Among the nationally
known financial
advisory firms, only
PFM combines the
experience gained in
completing large
numbers of transactions
with the sophistication
and analytic capability
required to bring
transactions of high par
value to market.
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Experience and Expertise
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Nationally, PFM
has 139 offi.cials,
ma0agers, and
professionals
who are directly
involved and
interact with
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governmental
officials.
I
Locally, PFM
has a staff of 8 to
servi:ce the City's
.(i n an cial
I
objectives.
a. Describe any experience in public finance, to include the number of
people in a firm who are directly involved and interact with governmental
qfficials on matters of public finance.
Experience and Expertise
N adona! Experience
Since the firm was founded in 1975, PFM has been involved in financing
programs totaling in excess of $280 billion. Among the nationally ranked
financial advisory firms PFM ranked number one in 1999 and in 1998. During
1999, the firm completed 298 transactions with a total par value of more than
$13.6 billion.
1999 All Long-Term Municipal Haw luu"
NJltionaJ ~f F..nciJI Advisofy Ranktw
Sou-Rt: Tho8ond~ iMtII 0:mpIl'Jy
'tranu.c:tions
do/Jarsin ml/Uons
PFM
Public: RBSQurces :1l1
AdvIsory Group
Arst Southwest 382 ! 8.377.9
Company
Ponder & Co. 86 : 5,876.8
P.G. Corbin & 52 ' 4,860.8
Company, Inc.
Evensen Dodge Inc. 303 4,375.9
O'Srien PartnenJ, lnc, '55 .4,211.0
Oaln Rauscher 18' 3,544.2
Incorporated
U.S. Bancorp Piper 117 : 2,513,2
Jat1ray Inc
COO Advlsora 15<1 2,378.5
Incorporated
13,610.3
1,3.8811.3
Among the nationally known financial advisory firms, only PFM combines the
experience gained in completing large numbers of transactions with the
sophistication and analytic capability required to bring transactions of high par
value to market. PFM has consistently been the leading financial advisory
firm in terms of number and size of transactions. Over the last sixteen years,
PFM stands apart from other independent financial advisors by combining par
value and number of transactions,
1984-99 Financial Advisory Experience
Volume/Transaction Matrix
National Municipal Financial Advisory Ranking
Source: The Bond Buyer/Securities Data Company
Volume
of
Transactions
3800 .
3600
3400
3200
3000
2800
2600
2400
2200
2000
1800
1600
1400
1200
1000
800
600
400.
2001
o'
10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160
.
Springstead
.
Evensen Dodge
ePFM
CGMS
· Pander & Co.
.
PRAG .
Government
Finance Associetes
.
P.G. Corbin'
.
.O'Brien Perlners
. Cain Brothers Shettuck & Co.
Par Amount (in DaD's)
City of Winter Springs - Proposal for Financial Advisory Services I 4
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While enjoying
the experience
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and ljeputation of 'ic!
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a national firm, '.'1
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PFM also offers
the City the
gepth of
understanding
and r;.olnmitn1ent :*
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:;~
of a local firm. ~l~
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Florida Experience
PFM has been committed to Florida since 1985 and consistently ranks
among the top financial advisors in the State. In 1999 and 1998, PFM was
the number one ranked financial advisor in dollar amount and in volume of
transactions. Our goal is to provide the highest level of service to the City
and our other Florida clients.
;!'
1999 Florida Long.Tonn Municipal New Issues
fqtiDnIJJ M~ipltl FirwtciD/ AdvilcTy RlJnlcl-lg
Sourc.; "'- Bond BuywlS<<~ oar. CoInpen)'
. tr.ua:1lons
PFM
cbRal'1'hmlllons
',078.11
Given our commitment to Florida, PFM has established a strong presence in
the State. We at PFM are extremely proud of our reputation in the State of
Florida, We feel that it is our unique blend of national presence, local
understanding and commitment, and the ability to offer completely
independent financial advice that truly sets us apart from our competitors.
PFM offers its Florida clients a level of expertise that is unmatched in the
State or nation.
noca Ralon
Droobville
0""",",
Coral Gables
[}elray Beach
Gaines..;l1e
lliah:ah
Joct:sonvillc
Jupiter
KeyWCSl
I...ongbolll Key
Mclroume BC<lCh
New Port Ricbcy
Nonh Pori
Onmnd lka:h
51. Cloud
Sanibcl
Sebring
Sum"
Sunrhic
Tamarac
Wimer Hn\'Cf1
WlrnerGardcn
Wimer ParI.:
Zephyrhills
Alacbua Coumy
ClayCoumy
Lee County
Marion COUlll)'
Monroe Conroy
Orange Coumy
SI. Johns COUIlIY
Dan Ral$Cher
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Public Financial M'anngement, Inc.
Slate of florida Clients
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Allamic Utililics or Siltll!K1Ul, Inc.
Donila Springs UtilHics.loc.
Clay County Ulilll)' Au(oority
0rIaJW Utilities Conunission
H,"her Educutlon
Palm Beach Atlantic College
Ringling School of Art
andlJcs1gn
Universil y of South Florida
The StutCI ul nnrtdai
OtherAulhori1le",
Florida Dcparturnl of
Transponatioll
Miami (h'might Board
Florida Municipal COUIK.'i1
Oranse County Research &
Devdopmc:nl Authnrity
Count,"
Florida 1\)0 CouocH
Jacbonville Pon AutbJrily
SchnollJk1f'k1.'1
Droward Cmmty
AaglerCouruy
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Monroe COUIllY
Pasco County
Seminole County
Volusia COUIlIY
HnlthcunJ
All Mcd Sa.nta Fe lIealth
Systetm. Inc.
Good Sam:lritan IleaUh
Syslems. loc.
Monroe Medical Regional Center
Ornnge County lIeallh
Facililies AUlhorily
Pnrril'h Mcdical Center
f>reshyterinn Retirement
Communities. Inc.
Vicar's Ll1nding C(lntinuillg
Carc Rctjrcll'~1l1 Ccmer
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Alachua Ubrary Dislrict
DayColony Special
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Hnglcwood Water District
Riverwood Community
Developmctlt District
Tnlmpnrtatkm
Orlando/Or.ulSC County
E~pres5way AUlhl.llity
Cenlnil Florida Regional
Transp:lrtation Authority
Santa Rosa Bay Bridge
AUlOOrity
Rorida Transit Association
Finance Cmp.muion
City of Winter Springs - Proposal for Financial Advisory Services I 5
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Financial Expertise
In the firm's twenty-five years of providing financial advice, PFM has been a
part of virtually every financing structure that has ever been available in the
municipal market. PFM's role as the financial advisor is to develop innovative
financing plans through quantitative analysis, use those specialized plans to
enhance the credit ratings of our client and bring down the cost of issuing
debt. Below you will find general explanations of PFM's innovative financing
strategies, quantitative analyses capability, rating agency upgrade methods,
and investor relations programs. Each of these tools is used to give our
clients the advantage in the municipal markets, Specific examples are found
in case studies throughout this proposal.
PFM Innovative Financing Strategies
As an independent financial advisory firm, PFM is able to explore innovative
financing strategies not tied to the issuance of bonds, In the course of our
advisory work across the nation, we have had involvement in a broad array of
financings. We have recommended the use of fixed rate notes and bonds,
variable notes and bonds, both with and without put features, capital
appreciation bonds, interest rate swaps, and lease financing agreements,
Few, if any, other financial advisory firms can claim the diversity of
experience in structuring innovative and successful tax-exempt financings
that PFM can claim.
PFM has a record of developing innovative financing techniques designed to
meet our clients' needs and to provide the lowest possible cost of capital.
Whether the innovation is as simple as a call feature or as dramatic as a
swap, PFM has pioneered the use of these methods for our clients. Our
clients have successfully used all of the methods described herein,
Quantitative Analyses
PFM professionals use the latest versions of powerful spreadsheets,
incorporating numerous proprietary functions and macros, to build flexible,
customized models that address the unique analytical requirements of our
clients. We also have a site license for DBC, a well-known commercial bond-
sizing program that currently serves as the industry standard. Using these
resources, we can go "toe-to-toe" with the brightest investment bankers and
are often called upon by our clients to generate original analyses or to check
the integrity of analyses submitted to our clients by investment banking
departments, We are proud of our analytical capabilities and believe that our
three-month training program provides our consultants an advantage. Not
only can we run the models used by most of Wall Street, but also we can
build these models from scratch. It is this fundamental understanding of the
technical aspects of our business set us apart from our competition.
PFM's analytical capabilities are not, however, used solely to react to
investment banks. On the contrary, in January 1994, PFM formed the
Quantitative Strategies/Structured Products Group whose role is to stay
abreast of developments in public finance and determine proactively the
applicability of these developments to our clients. The Group actively seeks to
develop new techniques to allow our clients to realize their objectives and
manage risks. One benefit of our proactive approach is we identify and
City of Winter Springs - Proposal for Financial Advisory Services I 6
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inform our clients of potential savings opportunities using these products.
This puts our clients in a position of strength from the standpoint of
negotiating business terms. PFM fully understands the product and serves
only our clients' interests. When an idea is feasible, our expertise enables a
competitive process for sufficiently standardized products, such as most
swap products. At other times, when a negotiated transaction is desirable,
our understanding of and familiarity with the quantitative aspects enhances
negotiation services we provide.
Rating Agency Expertise
The market reacts to headlines, and often an issuer's public response is
driven by the political necessity of taking a hard stance. In these cases, it is
imperative that the issuer take a proactive approach to informing the rating
agencies of the facts behind the headlines so the rating analysts are well
prepared to face the questions directed to them. PFM has developed
extensive experience in working with the major national rating agencies (Le,
Moody's Investors Service, Inc,. Standard & Poor's Corporation, and Fitch
ISCA, Inc.) and has a clear understanding of their analytical methodology.
Over the past three years, PFM has submitted over 200 financings to rating
agencies for their evaluation - in many instances the result being an upgrade
of one or more levels by one or more of the firms. We believe the following
tenets act as the cornerstone of productive relationships with the rating
agencies:
Credible Strategic Financial Plan. An issuer must develop a credible long-
term financial plan that addresses funding for the entirety of its debt-financed
components, The plan should include standards and methods for measuring
progress on the implementation of the plan and a methodology for assessing
the need for mid-course corrections. The plan should also require a full
update at specified intervals, include an acknowledgment that some program
elements will not succeed, and provide a method for adding new elements
over time. This provides a substantive base for the more subjective portions
of the financial plan and directs the issuer's credit and financing objectives.
Comprehensive Credit Presentation. PFM assists our clients in developing
sophisticated, comprehensive credit presentations which incorporate all of the
client's positive credit features and provides responses to any actual or
potential credit negatives.
Investor Relations Expertise
An example of our rating agency expertise is included in the case study
section of this proposal. PFM assisted two of Florida's three triple A rated
city's obtain their recent upgrades.
In addition to increased advertising prior to bond sales, we suggest the
following applications where PFM has expertise:
Communication with ExistinglTraditionallnvestors. In order to improve
information flow and enhance credibility, the County should develop an
investor relations program. Under certain circumstances, PFM recommends
that an issuer schedule "road shows" to inform investors of the issuer's
financial status and the specific characteristics of any public debt offerings.
The focus is on institutional buyers of municipal bonds. In particular, target
City of Winter Springs - Proposal for Financial Advisory Services I 7
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audiences for these programs should include current holders of the issuer's
obligations, market opinion makers at the rating agencies, investment banks
and other influential information sources, and the national and regional
financial and business media. It is easier to find a willing buyer for a future
debt issue among satisfied and well-informed holders of currently outstanding
debt.
Outreach to Investors in Non-Traditional Markets. The continuing
evolution of the financial markets also mandates that the issuer develops
relationships with market segments not currently holding its respective bonds
or notes. PFM's extensive participation in these other markets (including
taxable bonds, private placement investors, non-investment grade investors,
etc.) would provide Winter Springs with access to a new investor base.
PFM's professionals' possess the advanced financial skills needed to
structure complex transactions, analyze credit quality, negotiate
aggressive business terms and bond pricing levels, develop computer
models or conduct disclosure reviews. The two most important
resources that we will devote to assisting the City are the core group of
professionals in the project team and our technical resources.
City of Winter Springs - Proposal for Financial Advisory Services I 8
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To be prepared is half
the victory.
-Miguel Cervantes
Case Studies
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Case Studies
PFM serves as financial advisor to issuers of all types and sizes. While
many financings are straightforward, quite a few require extensive planning
and financial modeling. PFM develops a plan of finance for each financing
regardless of the size, This document outlines the issuers' goals and
objectives, develops the rationale for the financing structure and presents
alternative financing concepts.
The following discussions are representations of our work throughout the
country. We chose not to attempt to impress you with our multi-billion dollar
financings or our most complex synthetic financing discussions. Rather
these few case studies are intended to introduce the City to a few financings
that may be relevant to future City projects.
Economic Development
In the 1980's the business community and members of the City Council of
Boca Raton, Florida became alarmed at the signs of increasing deterioration
in the downtown business district. The City Council acted to designate the
downtown as a community redevelopment area under Chapter 163 of the
Florida Statutes and established the Boca Raton Community Redevelopment
Agency (the "Agency"). In 1986, the Agency undertook a public initiative to
stimulate additional redevelopment in the Downtown by seeking approval of a
Downtown Development of Regional Impact (the ''DDRI'') for the entire
Redevelopment Area, The DDRI provided for approximately 5,000,000 office
equivalent square feet of development. Concurrent with the DDRI, the City
Council adopted "Visions 90", a $45,885,000 ten-year capital improvements
program, The DDRI and the resulting Development Order are critical in that
the Florida Growth Management Act imposes considerable restraints on
large-scale growth and development in overburdened urban areas. The
Development Order vests the approved level of development against
changes in conditions and future facility deficiencies.
In 1989, development began on Mizner Park, a major redevelopment project
consisting of a 30 acre "urban village" incorporating public park facilities,
mixed use commercial development, residences and cultural facilities, The
City purchased the land for Mizner Park and constructed the primary
infrastructure through the issuance of Tax Increment Bonds. In 1998, PFM
advised the City on it's $72,560,000 Community Redevelopment Agency, Tax
Increment Revenue Bonds, Series 1998, which refunded prior bonds and
restructured the Agency's debt service. The financing is secured by tax
increment revenues, lease revenues and a backup pledge of public service
taxes. The bonds were structured with a "window" in the principal
amortization structure to supplement a reserved fund designed to limit the
City's susceptibility to fluctuation in future tax increment revenues. This
structure enables the City to mitigate almost all risk of ever having to use
public service taxes to pay debt service.
The Visions 90 Project along with the Mizner Park development were critical
components of a plan that recreated the downtown business district. The
success of this redevelopment has resulted in an increase in assessed value
of over 50% from 1995 to 1999, The district is now one of the most dynamic
retail and commercial districts in Florida.
City of Winter Springs - Proposal for Financial Advisory Services I 9
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Winter Garden Access Road Funding
The City of Winter Garden wanted to put feeder roads in place to serve the
traffic that would be created by a building boom in west Orange County. The
intent was to allow the best use of the limited access roadways that were
being built by the Orlando-Orange County Expressway Authority and to
minimize the disruption that might occur to neighborhoods if traffic overflowed
from what would have become the default feeder system. Of course, the
Orlando-Orange County Expressway Authority wanted the feeder roads to
facilitate the use of the limited access roadways. To serve both of their
interests, it would be necessary to find a truly unique way of raising the funds
to build the feeder roads,
Faced with the challenge of paying in advance to build roads to serve areas
that were just then being constructed, the City, the Expressway Authority and
PFM worked together to design a structure that would allow the roads to be
built immediately. Winter Garden wanted to pay for the roads with revenue
produced by the growth that created the need. Legal and credit issues
precluded Winter Garden from issuing debt backed by the impact fees and
tax increment revenues (Le. the revenue produced by the growth). The
solution would be for Winter Garden to directly repay the Expressway
Authority for the costs incurred in building the roads. The repayments could
occur only to the extent revenues were available. This unique structure
protected the City from an onerous debt service burden, but had enough
protections that the Expressway Authority was comfortable.
PFM designed a debt structuring model that would accumulate the costs of
the road construction at an agreed upon cost of capital. The debt would be
gradually repaid as the City received impact fees. Based upon certain
benchmark criteria, the City would additionally use available City revenues in
amounts equal to a defined portion of the tax increment revenues to repay
the debt.
The structure allowed the Expressway Authority to have a creditworthy
receivable for the feeder roads they built and allowed Winter Garden to have
repayment linked only to growth based revenues, isolating the obligation from
other City funds. The last step that PFM undertook was to model numerous
stress test scenarios based upon delays and changes in new construction.
Satisfied that the repayment structure protected both the City and the
Expressway Authority in a variety of slower-than-expected growth situations,
the City Commission and the Expressway Authority approved the project and
financing.
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Ratings Upgrades
The City of Boca Raton, a current PFM client that has worked with David
Moore for nearly ten years, sought to have their ratings upgraded based on
some strong fundamentals. In the early 1990's, the City's ratings were in the
high single-A to low double-A category for different securities,
David worked over most of the past decade to help the City develop
compelling stories that highlighted the strengths of the City while
counterbalancing the perceived weaknesses, Particularly challenging was a
substantial loss of high-tech employment. With a comprehensive strategy
City of Winter Springs - Proposal for Financial Advisory Services 110
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that focused on the power of the economic development initiatives within the
City and the diversified small company employment base, David dialogued
with the various rating agencies semiannually to annually.
The benefit of the comprehensive strategy and the proactive discussions has
been a string of rating upgrades continuing through the City becoming one of
the first triple-A cities in the State of Florida. Through a similar process and
effort, Coral Gables has joined Boca Raton as one of only three Florida cities
to hold triple-A ratings.
Education
School districts throughout Florida are under tremendous pressure to expand
classroom capacity and renovate existing facilities in an era when voter
sentiment runs against approving general obligation debt programs. Florida's
"Classrooms First" program, recently authorized by the Legislature, provides
funds to supplement local capital outlay millage, local option sales taxes and
other capital funds. Many districts have found planning capital needs is
complication by (i) restrictions on use of funds as defined by the state, (ii)
increased construction costs, and (iii) local issues such as site selection and
other intergovernmental impediments.
PFM assisted a number of our clients develop a comprehensive capital
management plan which considers all funding sources and capital needs in
one planning model. On an annual basis, construction goals and objectives
are matched to revenues allocable to the respective projects to determine
timing for specific projects. The model optimizes the use of pay as you go,
debt COPs to maximize total project funding. The planning tool is valuable to
education officials in that it enables the district to focus on discrete project
prioritization while modeling the entire long-term capital program,
In 1998, the School District of Lake County issued its $71,355,000
Certificates of Participation to fund a portion of a $200 million capital
improvement program. The COPs were structured to provide sufficient
cashflow during the five year planning period to fund other capital projects
and retire revenue anticipation notes while leaving financing capacity for
another $70 million of COPs in the next five years. Insert Winter Garden-
innovative financing structure
Creative Financing Structure
The City of Winter Park is in the process of evaluating alternatives for
replacement of its aging public safety facilities. The architect estimates that
the project will cost approximately $10 million, Debt service on a project this
size would increase local ad valorem millage by about .4 mill using traditional
debt service structures.
The City's goal was to minimize the increase in millage while maintaining a
conservative plan of finance. PFM modeled the City's existing debt structure
and determined that a significant portion of the existing debt matured by
2003. Since debt service decreased in 2003, a "window" existed where the
City could pay debt service for the new public safety facility. Capitalizing
interest for the entire three-year period would be expensive and might cause
voters to turn against the project.
City of Winter Springs - Proposal for Financial Advisory Services 111
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CONTENTS
INDEPENDENT AUDITORS' REPORT
1
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Balance Sheets
Consolidated Statements of Operations
Consolidated Statements of Changes in Stockholders' Equity
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
2
3
4
5
6-15
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KREISCHER
MILLERC#CO.
Certified Public Accountants
Independent Auditors' Report
The Board of Directors and Stockholders
Public Financial Management, Inc. and Subsidiary
Philadelphia, Pennsylvania
We have audited the accompanying consolidated balance sheets of Public Financial
Management, Inc. and Subsidiary (formerly PFM Acquisition Corporation and
Subsidiaries) as of December 31, 1998 and 1997, and the related consolidated
statements of operations, changes in stockholders' equity, and cash flows for the years
then ended. These financial statements are the responsibility of the companies'
management. Our responsibility is to express an opinion on these financial statements
based on our audits,
We conducted our audits in accordance with generally accepted auditing standards,
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material 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 audits provide a reasonable
basis for our opinion,
In our opinion, the consolidated financial statements referred to above present fairly, in
all material respects, the consolidated financial position of Public Financial Management,
Inc, and Subsidiary as of December 31, 1998 and 1997, and the results of their
operations and their cash flows for the years then ended, in conformity with generally
accepted accounting principles.
/(~/NJt.r4!1,
Kreischer Miller & Co.
A Parrnaship of
, Professional Corporations
Horsham, Pennsylvania
February 12, 1999
Nonh Poine
Office Cenecr
200 Gihralwr Road
H arslUlm, PA
190-1-1-2378
215.441.4600
FAX: 215.672.8224
Member
The McGladre)' Nerwork
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PUBLIC FINANCIAL MANAGEMENT, INC. AND SUBSIDIARY
I Consolidated Balance Sheets
December 31, 1998 and 1997
I 1998 1997
ASSETS
Current assets:
I Cash and cash equivalents $ 2,508,589 $ 2,994,267
Accounts receivable, less allowance for doubtful accounts
of $349,000 and $222,000, respectively 3,357,112 2,637,606
I Work-in-process 2,433,900 2,498,197
Prepaid expenses and other current assets 989,532 765,337
Deferred income taxes 770,000 427,000
I Total current assets 10,059,133 9,322,407
Long-term portion of prepaid expenses 355,411
I Equipment and improvements, net 2,367,644 2,751,334
Loan origination fees, net of accumulated
amortization of $148,731 and $94,171, respectively 54,560
Goodwill, less accumulated amortization of $2,240,622
I and $2,081,645, respectively 431,242 590,219
Other assets, principally cash surrender value of
life insurance policies 5,185,361 4,701,463
I Deferred income taxes 1,707,000 1,400,000
TOTAL ASSETS $ 20,105,791 $ 18,819.983
I LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 173,753 $ 1,192,350
Current portion of accrued retirement obligation 598,891 533,005
Accounts payable 634,469 569,069
Accrued expenses 8,466,238 4,533,315
Total current liabilities 9,873,351 6,827,739
Long-term debt, net of current portion 367,089 3,000,000
Accrued retirement obligation 5,004,464 4,395,864
Deferred income taxes 46,000 130,000
Total liabilities 15,290,904 14,353,603
Stockholders' equity:
Common stock, $.01 par value; 2,000,000 shares
authorized; 1,055,000 and 1,040,000 shares,
respectively, issued and outstanding 10,550 10,400
Additional paid-in capital 1,150,538 1,089,492
Retained earnings 3,653,799 3,366,488
Total stockholders' equity 4,814,887 4,466,380
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 20,105.791 $ 18,819,983
See accompanying notes to consolidated financial statements.
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1998
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$ 27,473,001 I
76,398
27,549,399 I
16,238,155 I
8,791,975
395,851
25,425,981 I
2,123,418 I
913,000
$ 1,210,418 I
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PUBLIC FINANCIAL MANAGEMENT, INC. AND SUBSIDIARY
Consolidated Statements of Operations
Years Ended December 31, 1998 and 1997
Revenues:
Professional fees
Interest income
Expenses:
Salaries, incentive compensation, and employee benefits
General and administrative
Interest expense
Income before income taxes
Income taxes
Net income
See accompanying notes to consolidated financial statements.
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$ 32,219,380
96,614
32,315,994
21,899,114
9,641,380
162,189
31,702,683
613,311
326,000
$ 287,311
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PUBLIC FINANCIAL MANAGEMENT, INC. AND SUBSIDIARY
Consolidated Statements of Changes in Stockholders' Equity
Years Ended December 31, 1998 and 1997
Additional
Paid-in
Capital - PFM
Retained
Earnings
$ 3,190,070
Common
Stock
Balance, December 31, 1996
$ 10,200 $ 1,023,800 $ 2,156,070
Sale of 20,000 shares of common stock
200
65,692
Net income
1,210,418
4,466,380
1,089,492
3,366,488
Balance, December 31, 1997
10,400
Sale of 15,000 shares of common stock
150
61,046
Net income
287,311
$ 4,814,887
Balance, December 31, 1998
$ 10,550 $ 1,150,538 $ 3,653,799
See accompanying notes to consolidated financial statements.
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Total
Stockholders'
Equity
65,892
1,210,418
61,196
287,311
PUBLIC FINANCIAL MANAGEMENT, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
Years Ended December 31, 1998 and 1997
1998
1997
Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization of equipment
and improvements
Amortization of intangible assets
Allowance for doubtful accounts
Loss on disposal of equipment and improvements
(Increase) decrease in:
Accounts receivable
Work-in-process
Prepaid expenses and other current assets
Deferred income taxes
Other assets
Increase (decrease) in:
Accounts payable and accrued expenses
Accrued retirement obligation
Deferred incentive compensation
$ 287,311
$ 1,210,418
Net increase (decrease) in cash and cash equivalents
1,025,374 1,000,364
213,537 191,171
127,000 (18,000)
1,156 4,651
(846,506) (48,397)
64,297 406,854
(579,606) 341,467
(734,000) (387,000)
( 483,898) (458,955)
3,998,323 1,450,438
674,486 628,268
(64,259)
3,747,474 4,257,020
(644,180) (938,894)
1,340 7,727
(642,840) (931,167)
(4,192,3 SO) (2,084,932)
540,842
61,196 65,892
(3,590,312) (2,019,040)
(485,678) 1,306,813
2,994,267 1,687,454
$ 2,508,589 $ 2,994,267
Net cash provided by operating activities
Cash flows from investing activities:
Purchases of equipment and improvements
Proceeds from sale of equipment
Net cash used in investing activities
Cash flows from financing activities:
Repayment of long-term debt
Proceeds from long-term debt
Proceeds from sale of common stock
Net cash used in financing activities
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest
Income taxes
$ 185,074
$ 1,453,151
$ 418,088
$ 1,144,165
See accompanying notes to consolidated financial statements.
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PUBLIC FINANCIAL MANAGEMENT, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
December 31, 1998 and 1997
(1) Nature of Business
The Company is a professional services firm that specializes in providing financial
advisory and money-management services primarily to state and local governments
throughout the United States. Financial advisory services relate principally to the
structuring, pricing and rating of municipal debt.
(2) Summary of Significant Accounting Policies
Acquisition and Principles of Consolidation
On October 10, 1995, PFM Acquisition Corporation (the Company) was formed to enter
into a stock purchase agreement to acquire the common stock of Public Financial
Management, Inc. and its subsidiary, PFM, Inc. Effective January 1, 1998, PFM
Acquisition Corp. was merged into Public Financial Management, Inc.
The accompanying financial statements include the accounts of Public Financial
Management, Inc. and PFM, Inc., its wholly owned subsidiary. PFM Acquisition Corp.
activity is included through December 31, 1997.
All significant intercompany accounts and transactions have been eliminated in the
accompanying consolidated financial statements.
Revenue Recognition
The Company bills for its services on a fixed price, hourly basis or as a percentage of
compensable assets under management. Revenue for hourly contracts is recognized as
the work is performed. Revenue for fixed price contracts is recognized on the
percentage of completion method using the cost-to-cost method.
At December 31, 1998 and 1997, the Company managed compensable assets with a
market value of approximately $9,400,000 and $8,200,000,000, respectively.
The Company's financial advisory contracts are at times long-term in nature. Revenues
on these contracts are recognized prior to billing based on progress toward completion
and estimates of total contract profitability, The unbilled revenue is classified in the
accompanying balance sheets as work-in-process. Asset management revenue that has
been earned but not billed is also classified in the accompanying consolidated balance
sheets as work-in-process.
Continued...
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PUBLIC FINANCIAL MANAGEMENT, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
December 31, 1998 and 1997
(2) Summary of Significant Accounting Policies, Continued
Cash Equivalents
Short-term investments or other highly liquid instruments having a maturity of three
months or less are considered cash equivalents,
Equipment and Improvements
Equipment and improvements are stated at cost. Depreciation of equipment is
calculated on the straight-line method over the estimated useful lives of the assets.
Leasehold improvements are amortized on a straight-line basis over the shorter of the
lease term or estimated useful lives of the assets.
Goodwill
Goodwill is being amortized on a straight-line basis over approximately 6 years.
Cash Surrender Value of Life Insurance
Cash surrender value of life insurance, included in other assets, represents the
Company's equity in whole life insurance policies on certain officers and employees of
the Company,
Concentrations of Credit Risk
Financial instruments which potentially expose the Company to concentrations of credit
risk as defined by Statement of Financial Accounting Standards No, 105, consist
principally of cash and cash equivalents, accounts receivable, and cash surrender value
of life insurance. The Company principally utilizes a national bank to maintain its
operating cash accounts and temporary cash investments. At certain times, such
balances may be in excess of FDIC insurance limits. The Company's principal customers
are municipal governments. Services to these customers are normally provided under
contractual arrangements. The Company purchases life insurance policies from two
insurance companies. At December 31,1998, one company had policies with cash
surrender values of approximately $3.59 million and the other had approximately $1.42
million.
Continued.. .
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PUBLIC FINANCIAL MANAGEMENT, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
December 31, 1998 and 1997
(2) Summary of Significant Accounting Policies, Continued
Concentrations of Credit Risk, Continued
One customer represented 17% of the Company's 1998 revenues. The Company has a
three-year contract with this customer, which renewed January 1999.
Income Taxes
Income taxes in the accompanying financial statements were computed in accordance
with Statement of Financial Accounting Standards No. 109, Accountingfor Income Taxes.
This standard requires an asset and liability method of accounting for income taxes,
Under this method, deferred tax assets and liabilities are recognized for the estimated
future tax consequences attributable to differences between the book and tax bases of
assets and liabilities, as well as the estimated future tax consequences attributable to net
operating loss and tax credit carryforwards. A valuation allowance is established if,
based upon all available information, it is deemed "more likely than not" that a portion
or all of a deferred tax asset will not be realized.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ from
those estimates.
Advertising
The Company expenses all advertising costs when incurred.
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-8-
1997
$1,736,389
1,850,647
2,856,477
1,036,081
7,479,594
Estimated
Useful Lives
2-7 years
10 years
3-5 years
3-5 years
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PUBLIC FINANCIAL MANAGEMENT, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
December 31, 1998 and 1997
(3) Equipment and Improvements
Equipment and improvements consist of the following at December 31:
Leasehold improvements
Furniture and fixtures
Equipment
Computer software
1998
$ 1,736,389
1,923,140
3,224,510
1,192,859
8,076,898
Accumulated depreciation
and amortization
(5,709,254)
$ 2,367,644
(4,728,260)
$2,751,334
(4) Line of Credit
The Company has a $3,000,000 line of credit that expires June 30, 2000, The unpaid
principal balance of each advance bears interest the either LIBOR plus 1.3%, LIBOR
Market Index Base rate plus 1.3% or the bank's Prime rate minus 1.0% selected by the
Company. The line of credit is collateralized by the cash surrender value of the officers'
life insurance and the Company is required to maintain certain financial covenants in
connection with the line of credit. There was no balance outstanding on the line of
credit as of December 31, 1998 or 1997. The Company obtained an additional
$2,000,000 line of credit in 1999 with similar terms that expires in August 2000,
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PUBLIC FINANCIAL MANAGEMENT, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
December 31, 1998 and 1997
(5) Long-Term Debt
Long-term debt consists of the following at December 31:
1998 1997
Note payable to a credit association for financing
insurance coverage. The note is to be repaid in monthly
installments of $17,045 which includes interest of 6.63%.
The note is secured by insurance policies. $ 540,842 $
Note payable to bank in monthly principal installments
of $61,905. Principal prepayments were rE7quired
annually depending on the Company's pretax income
and stockholder compensation. The interest rate, interest
period, and timing of the interest payment was elected by
the Company based on either the adjusted commercial rate
or a function of LIBOR. 942,864
Note payable to bank on the earlier of October 30, 2000
or one year after the above note is repaid in full. The
interest rate, interest period, and timing of the interest
payment was elected by the Company based on either the
adjusted commercial rate or a function of LIB OR. 3,000,000
Note payable to a credit association for financing insurance
coverage. The note was to be repaid in monthly installments
of $25,394 which includes interest of 6.71%, commencing
December 30, 1996. The note was secured by the financed
insurance policies. 249,486
540,842 4,192,350
Current portion (173,753) (1,192,350)
Total long-term debt $ 367,089 $ 3,000,000
Continued...
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PUBLIC FINANCIAL MANAGEMENT, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
December 31, 1998 and 1997
(5) Long-Term Debt, Continued
As of December 31, 1998 maturities of long-term debt are as follows:
1999
2000
2001
$173,753
185,689
181,400
$ 540,842
(6) Retirement Plans
The Company maintains a non-qualified Executive Wealth Accumulation Plan (Old
Plan) that provides retirement benefits to managing directors and senior managing
consultants. The Old Plan permitted participants to contribute up to 100% of their
salary and bonus each year on a pre-tax basis.
The Company matched the contributions of managing directors and senior managing
consultants up to a maximum of 7.5% and 2.5% of salary and bonus, respectively.
Company contributions vested at the rate of 20% per year. Interest is credited to
participant accounts at Moody's corporate bond yield rate for the preceding calendar
year. Penalties exist for early participant withdrawals from the old Plan.
The Company's obligation under the Old Plan is that of an unsecured promise to pay in
the future. This obligation, which totaled $4,561,467 and $4,165,302 at December 31,
1998 and 1997, respectively, comprised employee contributions, vested Company
matching contributions, and vested credited interest. The Company has funded its
obligation under the Old Plan with life insurance policies it has purchased (to the extent
allowable within its loan covenants) having cash surrender and prepaid premium values
totaling $4,613,772 and $4,415,332 at December 31,1998 and 1997, respectively. The
Company recognizes assets and liabilities associated with the Old Plan on its balance
sheet as no trust has been established for the Old Plan. The Company's expense under
the Old Plan was $460,507 and $471,745 for the years ended December 31,1998 and
1997, respectively.
On January 1,1996, management froze this Old Plan; therefore no additional matching
contributions have been made to the Old Plan. Old Plan assets will continue to accrue
interest and participants will continue to get credit for years of service.
Continued.. .
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PUBLIC FINANCIAL MANAGEMENf, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
December 31, 1998 and 1997
(6) Retirement Plans, Continued
Effective October 1996, the Company introduced the 1996 Executive Wealth
Accumulation Plan (EWAP 3) which provides managing directors with retirement
benefits, Participants can defer unlimited amounts of compensation in excess of
$160,000, The Company will match up to 50% of the average of ownership share and
bonus share multiplied by a participant's income above $160,000, Company
contributions vest at 25% per year. Participants elect from a number of investment
choices and are entitled to the vested income that would be earned from such
investment. It is the Company's intent to fund the investments as the liabilities are
incurred.
The Company's obligation under the EWAP 3 plan is that of an unsecured promise to
pay participants' contributions and matching contributions in the future. The
Company's obligation under the EWAP 3 plan was $456,401 and $244,038 for the years
ended December 31,1998 and 1997, respectively, The Company's expense for the
EWAP 3 plan was $128,000 and $100,000 for the years ended December 31,1998 and
1997, respectively.
Effective January 1, 1996, the Company adopted a qualified 401(k) and profit sharing
plan. The Company matches 50% of employee contributions on the 401(k) plan, up to
the first 6% of an employee's elected deferral of salary. Profit sharing contributions are
made at the discretion of the Board of Directors. There is a one-year service
requirement and employees are fully vested in employer's contributions after seven
years of service. Employ"er contributions for the years ended December 31, 1998 and
1997 totaled $587,866 and $491,358, respectively, for the profit sharing plan and
$232,360 and $196,877, respectively, for matching 401(k) contributions.
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PUBLIC FINANCIAL MANAGEMENT, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
December 31, 1998 and 1997
(7) Income Taxes
The provision for income taxes consists of the following at December 31:
1998 1997
Current:
Federal $ 810,000 $ 990,000
State 250,000 310,000
Total current 1,060,000 1,300,000
Deferred:
Federal (734,000) (387,000)
Total taxes $ 326,000 $ 913,000
The reconciliation of income taxes computed at the federal statutory rate of 34% and
actual income taxes follows:
Income taxes at statutory rate
Increase attributable to:
State taxes, net of federal effect
Increase (decrease) in valuation
allowance for deferred tax assets
Permanent differences, principally
the amortization of negative
goodwill and increase in the cash
surrender value of officersr
life insurance
1998
$ 209,000
1997
$ 722,000
165,000
205,000
(25,000)
8,000
(23,000)
$ 326,000
(22,000)
$ 913,000
Continued., .
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PUBLIC FINANCIAL MANAGEMENT, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
December 31, 1998 and 1997
(7) Income Taxes, Continued
The tax effects of temporary differences that give rise to significant portions of the
deferred tax assets and deferred tax liabilities at December 31, 1998 and 1997 are
summarized below, The amount of the deferred tax asset considered realizable,
however, could be reduced in the near term if estimates of future taxable income during
the time the items below are deducted on the tax returns or in any carryforward period
are reduced.
Deferred tax assets:
Allowance for doubtful accounts
Accrued compensation
Equipment and improvements
Incentive compensation payable
Executive wealth accumulation plans
1998 1997
$ 140,000 $ 89,000
37,000 81,000
239,000 162,000
826,000 388,000
2,017,000 1,775,000
3,259,000 2,495,000
782,000 668,000
2,477,000 1,827,000
12,000
34,000 130,000
$ 2,431,000 $ 1,697,000
Valuation allowance
Deferred tax liabilities:
Cash surrender value of life insurance
Goodwill
(8) Commitments
Leases
The Company conducts its operations from leased facilities. These leases, which are
classified as operating leases, expire at various dates through 2009. The Company is
required to pay executory costs such as maintenance and insurance under the terms of
the leases, Annual minimum lease payments required under these leases as of
December 31, 1998 are:
Years Ending
December 31:
1999
2000
2001
2002
2003
Thereafter
$ 1,120,346
1,042,848
974,008
691,595
555,172
3,794,782
$ 8,178,751
Continued...
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PUBLIC FINANCIAL MANAGEMENT, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
December 31, 1998 and 1997
(8) Commitments, Continued
The lease expense included in general and administrative expenses was $1,518,489 and
$1,450,356 for the years ended December 31, 1998 and 1997, respectively.
In connection with one of the leases, the Company is required to maintain a letter of
credit in favor of the lessor in the amount of $500,000.
Employment Agreements
The Company has entered into employment agreements with certain key employees,
The contracts are automatically renewed on a year-to-year basis thereafter and are
cancelable by either party with 90 days prior notice. However, contracted employees
are entitled to not less than six months severance pay if the Company terminates their
employment. In connection with such agreements, contracted employees have agreed
not to compete in any respect with the business of the Company for the longer of: 1) 12
months after the termination date, or 2) the remaining term of the employment
agreement.
Health Self-insurance
The Company maintains a self-insurance program for medical coverage, The Company
is liable for claims up to $20,000 per covered person annually, and aggregated claims
up to $308,648 annually. Self-insurance costs are accrued based upon the aggregate of
the liability for reported claims and an estimated liability for claims incurred but not
reported.
Insurance Deductible
The Company has a $1,000,000 deductible on its Errors and Omissions Insurance.
Deductible amounts are accrued when, in the opinion of management, an incident has
occurred which will require the Company to pay under the deductible. At December 31,
1998 and 1997, there were no insurance deductibles accrued.
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PFM has become the
nation's leading financial
advisory firm by providing
clients with extensive and
superior service.
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PFM developed approximately fifteen scenarios considering different
structures that would mitigate the increase in millage while retaining a
conservative amortization structure, We recommended that the City issue a
non-amortizing, "bank qualified" Bond Anticipation Note (BAN) that could be
drawn down during construction to minimize interest carrying cost. The City
will issue general obligation bonds in 2003 to retire the BAN,
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In the current relatively high interest rate environment, a hidden benefit of this
plan is that the City does not have to issue long term debt today. However,
the City can refund the BAN at anytime during the next three years when
interest rates decrease. The short-term borrowing cost associated with the
BAN is at least 1 % lower than long-term interest rates. Also, since the BAN
can be prepaid without penalty, the City will save as much as $200,000 to
$300,000 in issuance costs and lock in lower rates some time during the next
three years.
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City of Winter Springs - Proposal for Financial Advisory Services 112
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Our goal is to provide the
highest quality advice to
our clients so they are
able to raise, invest and
manage the resources
they need in the most
cost-effective manner
possible.
Personnel
Engagement Manager
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b. Identify key personnel wl10 will be working witl1 tile City: describe
specific tasks each Will be assigned; and provide resumes for those key
personnel. .
Qualifications of Key Personnel
Experience
PFM professionals have unparalleled experience and expertise in
government and the financial markets. Included among our professionals are
former Finance Directors, City Managers, County Administrators, Transit
Agency CFOs and School Business Managers. In addition to government
service, many of our professionals have worked as attorneys, bankers,
portfolio managers, controllers, city planners, systems managers, architects
and engineers.
Project Team
Our organization allows us to build each project team in a manner that will
best serve the individual client. This may mean bringing together several
members of the same advisory practice or it may entail organizing a team
from several different practices and offices. Our specialized project teams
ensure that our clients receive complete and thorough advice directly from
the professionals most appropriate to meeting their particular needs, This
approach fosters creativity and innovation between PFM professionals and
clients. The end result is premium client service,
David M. Moore, Senior Managing Consultant, will manage this
engagement. Mr. Moore is one of the most active financial advisors in central
Florida completing over $800 million in financings during the last two years.
He will represent PFM at all meetings and coordinate the efforts of the entire
team. Hugh Marble, III and Rebecca Peterson are Consultants in our
Orlando office and will serve as the primary support team for Mr. Moore,
They will perform all analytical work and assist Mr. Moore in presentations
and meetings. The remaining members of the Florida team are also
available in the event the City has need for their specific expertise.
The Winter Springs Team
The City of Winter Springs
Lavon Wisher
David Moore
Contact Person
Project Manager
Investment Manager
Steve Alexander
Hugh Marble
T echnicallAnalytical
Support
Rebecca Peterson
T echnicallAnalytical
Support
John Grady
Technical/Analytical
Support
City of Winter Springs - Proposal for Financial Advisory Services 113
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David Moore
Contact Person
Project Manager
51: jl1":I11:~!fil~!f COlJ.':illlt:l11t
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David Moore joined PFM in 1998 as a Senior Managing Consultant. Mr.
Moore moved to the Firm's Florida Group and Orlando office and specializes
in Florida municipal finance.
Throughout his career in public finance, Mr. Moore has worked as both an
investment banker and an independent financial advisor. Prior to joining
PFM, Mr. Moore worked as a Vice President and Manager of a national
financial advisory firm, Mr. Moore has served as engagement manager to
clients in Florida and throughout the Southeast on various types of financings,
including: general governmental purpose facilities, airport, education,
housing, public power, solid waste, special district and water and sewer debt.
His experience includes general obligation, revenue, lease and covenant debt
structures. In the last five years, Mr. Moore has completed over 100
financings totaling approximately $2.5 billion,
Mr, Moore has served as project manager of and provided management
support to the following Florida clients: the School Boards of Broward
County, Flagler County, Lake County, Pasco County, Seminole County,
Pasco County and Sarasota County; the Cities of Apopka, Boca Raton, Key
West, Melbourne, Orange City, Safety Harbor, St. Petersburg, Sunrise,
Winter Garden and Winter Park; Bay, Lee, Orange, Osceola and Seminole
Counties; and various other jurisdictions and special agencies throughout
Florida.
In addition to managing client relationships, Mr. Moore has extensive
experience developing complex financial models, performing debt capacity
and other financial analysis, preparing financing plans and providing
cost/benefit analysis for special projects. He has created a variety of
financing options for small and medium sized issuers. He has worked with
banks and other finance companies to develop financing structures that
enable cities to access capital without excessive issue costs associated with
traditional bond financing.
Mr. Moore's public finance background also includes the preparation of
disclosure documents and rating agency and insurance company materials.
Only three Florida municipalities are rated AAA. He has assisted two of the
three Florida municipalities obtain their ratings.
Mr. Moore holds an M,B.A., cum laude, from the Crummer School of
Business at Rollins College and a B.S. in Electrical Engineering from Auburn
University.
City of Winter Springs - Proposal for Financial Advisory Services 114
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Lavon Wisher
Engagement Manager
jlif;uwging Director
Ms, Wisher is a Managing Director of Public Financial Management. Inc. and
is responsible for all General Municipal financings in Florida, managing both
the Fort Myers and Orlando offices.
Ms, Wisher joined Public Financial Management, Inc, in 1985 and
established the firm's first Florida office in Fort Myers, Florida. Prior to joining
PFM, Ms. Wisher spent 30 years with the Lee County Government serving as
County Administrator for over 15 years. Her expertise and experience in
financial management included financings for a new Regional Airport, a toll
facility, a Criminal Justice Complex that included a jail, transportation
improvements, water and wastewater facilities and other infrastructure
improvements. She was directly responsible for the development and
innovative financing techniques for Special Taxing Districts including MSTU
and MSBU bonds.
Since joining PFM, Ms, Wisher has managed financings for water and
wastewater facilities, transportation improvements, convention centers and
worked on improving the structure of an existing local government bond pool.
She has developed the firm's effort to provide financial planning to Florida
clients in capital improvement programs and in the implementation of the
Capital Improvement Element required of local governments by the State of
Florida's new growth management law. The past two years PFM in Florida
has been ranked the number one financial advisor both in par amount and
number of bond issues. She leads the firm's effort in Florida to develop
financings that include assessments and impact fees.
Ms. Wisher attended Lee College in Cleveland, Tennessee and has studied
at the University of Chattanooga, the University of Florida and the University
of South Florida.
City of Winter Springs - Proposal for Financial Advisory Services 115
.~
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Steve Alexander
Investment Manager
Sr. ill:uwgiJ1!.( Consult:/11{
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Steve Alexander is a Senior Managing Consultant in PFM's Orlando office.
Mr. Alexander is responsible for the administration of PFM's investment
advisory services and products in the southeast of the country, Mr.
Alexander currently serves as the investment advisor to variety of local
governments including; Cities, Counties, Authorities, and School Boards, as
well as, the Governor's Emergency Financial Oversight Board for the City of
Miami.
Prior to joining PFM, Mr. Alexander served as the Treasury Manager for
Orange County, Florida where he was responsible for the management of the
County's $800 million cash and investment portfolio, banking, debt and
administration. Additional responsibilities included cash flow analysis and
debt management of various large construction projects. During Mr.
Alexander's ten-year tenure at Orange County he served in a variety of
financial and administrative positions. In addition, Mr. Alexander served as
the Deputy Director of Water and Wastewater Accounting department. Mr.
Alexander was a Financial Examiner/Analyst for the Division of Securities,
Florida Comptroller's Office.
Mr. Alexander co-authored Florida's new Investment Policy Statute, served
on the FGFOA's Local Government Investment Practices Task Force and the
Florida Association of Court Clerk's & Comptroller's Investment Policies &
Procedures Task Force. He serves on the Municipal Treasurer's Association
Investment Policy Certification Committee,
Mr. Alexander has a Bachelor of Business Administration Degree in finance
from Stetson University and a Bachelor of Science Degree in accounting from
Florida Southern College, Mr. Alexander is also a graduate of Rollins College
Financial Planner Program and is a Certified Cash Manager.
NASD Exam: Series 65
City of Winter Springs - Proposal for Financial Advisory Services 116
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Hugh Marble III
Technical/ Analytical
Support
Consultant
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Rebecca Peterson
Technical/ Analytical
Support
Consultant
John F. Grady III
Technical/ Analytical
Su pport
ci,J11.'wlt:lllt
Hugh Marble III provides financial advisory and analytical services to clients
throughout Florida, He joined PFM in July 1998, after having worked for
another national financial advisory firm, Before returning to graduate school,
he worked in technical support and sales for a high technology firm.
During his financial advisory career he has developed complex debt and cash
flow models to facilitate long-term capital planning by various clients,
including the School Districts of Broward and Lake Counties, the City of
Jacksonville and the Jacksonville Port Authority.
Additional clients for whom Mr. Marble is providing financial advisory services
include the cities of Boca Raton, Key West, Ormond Beach, Sunrise and
Winter Garden; Orange County; the South Carolina Transportation
Infrastructure Bank; the Orlando-Orange County Expressway Authority and
the University of South Florida.
Mr. Marble has a Bachelor of Science in Applied Quantitative Economics
from the University of Rhode Island and a Masters of Business Administration
with a concentration in Finance, cum laude from Rollins College.
Since joining PFM's Orlando office Rebecca Peterson provides technical and
analytical support to several Florida municipalities. Clients include Central
Florida Regional Transit Authority, Broward County School Board,
Jacksonville Port Authority, the City of Key West, Monroe County School
Board, Seminole County Public Schools, Orange County Public Schools, the
City of Jacksonville and the City of Titusville. Supporting senior professionals
on debt transactions and in financial planning, Ms. Peterson develops
financial computer models for debt sizing and structuring, pricing analysis,
and cash flow modeling for analyzing the specific needs of PFM's clients.
Ms. Peterson started with PFM as an intern in the Orlando office during the
summer of 1998. She graduated from the University of Florida in May 1999
with a Bachelors of Science degree in Finance and returned to PFM in July of
1999.
John F. Grady III, recently joined the Orlando PFM office as a consultant and
provides analytical and technical support to the firm's Florida clients. John's
responsibilities include financial modeling, developing amortization
schedules, cash flow analyses, and creating project specific spreadsheets.
Mr. Grady has provided analytical support while serving clients as both an
underwriter as well as a financial advisor, Some of the projects for which he
has served as analyst include the Orange County Convention Center; Orange
County Water Utilities System Refunding Revenue Bonds, Series 1998; the
Marion County School Board's 1998 ratings presentation which resulted in a
underlying rating upgrade; and the City of Miami's South Shore Hospital,
Series 1998A tax exempt bonds and the Series 1998B taxable bonds.
Mr. Grady received his B,S. in Finance and Insurance with a minor in
Economics from the University of Florida in May of 1997 and joined Public
Financial Management Inc, in June of 1999, Prior to joining PFM, Mr. Grady
served as an analyst for regional underwriting and financial advisory firm.
City of Winter Springs - Proposal for Financial Advisory Services 117
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To give real service
you must add
something, which
cannot be bought or
measu red with
money, and that is
sincerity and integrity.
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Litigation Statement
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c. Identify and explain any investigation, past or present, by any law
enforcement or other regulatory agency in connection with your
participation in any financial services provided to any other
governmental unit in Florida.
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PFM Statement of Litigation
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Public Financial Management, Inc. ("PFM") has no investigation, past or
present, by any law enforcement or other regulatory agency in connection
with a governmental unit in Florida.
City of Winter Springs - Proposal for Financial Advisory Services 118
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d. Provide an audited financial statement or a statement of your capital
position as of the date of your proposal, to include total capital, equity,
and uncommitted capital.
Financial Statement
PFM's 1999 Audited Financial Statement has not been completed as of the
date of this proposal. The following is the information requested for 1999.
Public Financial Management Inc.
Statement of Capital Position
March, 2000
Total Capital
Equity/Uncommitted Capital
1,104,938.00
3.890.173,84
4,995,111,84
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Please refer to the following pages for PFM's 1998 and 1997 Audited
Financial Statements.
City of Winter Springs - Proposal for Financial Advisory Services 119
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e. Provide a comprehensive list of references who can attest to your past
services, professional expertise and competence, and personal and
. corporate integrity.
References
City of Ormond Beach
Contact Name Paul Lane
Contact Title Finance Director
Contact Address 22 South Beach Street
Ormond Beach, FL 32174
Contact Phone (904) 676-3212
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City of Boca Raton
Contact Name Mervyn Timberlake
Contact Title Financial Services Director
Contact Address 201 West Palmetto Park Road
Boca Raton, Florida 33432-3795
Contact Phone (561) 393-7729
Lake County School Board
Contact Name Scott Smith
Contact Title
Director of Finance
Contact Address
201 W. Burleigh Blvd
Tavares, Florida 32778
Contact Phone
(352) 343-3531 xt. 240
City of Key West
Contact Name
Roger Wittenberg
Contact Title
Finance Director
Contact Address
525 Angela Street
Key West, FL 33041
Contact Phone
(305)292-8222
City of Winter Springs - Proposal for Financial Advisory Services I 20
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PUBLIC FINANCIAL
MANAGEMENT, INC.
AND
SUBSIDIARY
(formerly PFM Acquisition
Corporation and Subsidiaries)
Consolidated
Financial Statements
December 31,1998 and 1997
. . ."