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HomeMy WebLinkAbout2000 08 14 Regular (5) I I I I I I I I Proposal to Serve as Underwriter to the CITY OF WINTER SPRINGS, FLORIDA . Prepared by HANIFEN, IMHOFF INC. Southeast Regional Office 1560 N. Orange A venue, Suite 210 Winter Park, Florida 32789 (407) 622-0296 (800) 295-7602 GARY E. AKERS Senior Vice President JEFFREY T. LARSON Senior Vice President and Managing Director February 17, 1999 I Hanifen, Imhoff Inc. Investment Bankers 1560 North Orange Avenue. Suite 210 Winter Park. Florida 32789 (407) 622-0296 FAX (407) 622-0305 I I I February I 7, 1999 I Mr. Harry Martin Finance Director City of Winter Springs 1126 East State Road 435 Winter Springs, Florida 32708 I RE: Request for Proposals for Underwriting Services ("RFP") I Dear Mr. Martin: I We are pleased to submit our qualifications to serve as an Underwriter to the City of Winter Springs (the "City"). Prior to receipt of this RFP, we have supplied the City and its Financial Advisor on a number of occasions with preliminary refunding analysis for the City's Series 1989 and 1993 Bonds. Our local team worked closely with Mr. Lentz to develop an aggregate debt service structure for (i) refunding the Series 1989 Bonds and (ii) providing an additional $5,000,000 for new financing needs. We have also taken the time to discuss with Mr. Lentz the City's proposed new money requirements for the proposed Town Center project, Tuscawilla assessment issue and other potential needs. Therefore, our qualified professional staff is available immediately to provide comprehensive investment banking services to the City. I I - Hanifen, Imhoff is ideally suited to serve the City for the following reasons: Refunding and Structuring Capability The Hanifen, Imhoff team has the ability to innovatively structure debt refinancings to improve cash flow and maximize savings. This ability is demonstrated in the refunding analysis attached in an Appendix to in this proposal. We have a long-standing tradition of providing quality and responsive service to public and corporate clients throughout the country. This includes the local team's experience with comparable financings with the cities of Port St. Lucie, Palm Bay, Orange City, Winter Haven, Palatka, Oviedo, Mt. Dora, Sunrise, Fort Pierce, Panama City, and the Village of Royal Palm Beach, St. Lucie County, Bay County, Seminole County, Osceola County, Okeechobee Utility Authority and the Escambia County Utility Authority. Experienced Team Assigned to the City 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. Gary Akers, Senior Vice President, who has 21 years of experience in Florida Public Finance, has served as Senior Manager on five City issues totaling $28,820,000. Jeff Larson, Senior Vice President and Managing Director, a resident of Winter Springs, is active with many local charitable and civic organizations and brings valuable Florida underwriting experience with many comparable cities, counties and utility authorities. This experience includes a large number of water and sewer issues, district financings, assessment bonds, and the non-ad valorem, covenant to budget and appropriate ("CB&A") ~ ~ Member. National Association 01 Securittles Dealers. Inc. Denver. Glenwood Springs, Colorado Winter Parl<, Florida, Omaha, Nebraska I I I I Hanifen, Imhoff Inc. Investment Bankers structure. One recent $7,500,000 CB&A issue was for the City of Fort Pierce, where we worked closely with the City's Bond Counsel, Mike Williams, Carlton Fields. Market and Pricing Resources A vailable to the City I 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 levels, proposed covenants, call features and other critical pricing considerations. I I I No Litigation History An increasing amount of cities, counties, authorities and districts have determined 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, Imhoff's Southeast Regional Investment Banking Office continues to expand its business in Florida and is proud of its impeccable track record. I I I I I 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 Imhoff's local office. Both Mr. Akers and Mr. Larson are residents of Central Florida. Mr. Larson lives in the Tuscawilla area and can be at City Hall in less than five minutes. 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. Conclusion I I I I Representing the City of Winter Springs would be a privilege for our firm. We look forward to being a part of the City's underwriting team and pledge to commit our full resources to meet the City's refunding and financing goals. We are confident that you will examine our approach, qualifications and experience and conclude that our firm is most capable of serving as the City's Senior Manager. We are prepared to discuss our qualifications further should it be required. Please feel free to contact us at (407) 622-0296 or (800) 295-7602 with any questions or comments. Sincerely, ~~c.~ Senior Vice President Jeffrey T. Larson Senior Vice President & Managing Director I I I I I I I I I I I I I I I I I Letter of Transmittal Section History and Organizational Structure of the Firm................................................................ 1 Hanifen, Imhoff Team .... ...... ............... ............ ....... .............. ....... ...................... ........... ........ 2 Prior Experience with City......................... ........................ .... ....... ........................... ........... 3 Florida Financi ng Experience List....................................................................................... 4 Rating Strategy. ........... ...... .............. ....... ..... ......... ....... ....... ............... ............. ........... ...... ..... 5 Proposed Fees and Ex penses................................................................................................ 6 Marketing Approach............................................................................................................ 7 No Li tigati on History........................................................................................................... 8 MSRB Rule 0-38 Information...................................................... ....................................... 9 Conflict of Interest Statement............................................................................................. 10 References ..................................................................................................................... 11 Addi tional Information........................................................................................................ 12 APPENDIX: A B Hanifen, Imhoff Florida Financing Experience List Preliminary Refunding Analysis, Series 1999 Bonds (Refunding of Series 1989 Issue plus $5,000,000 in new money) c Summary Refunding Alternatives dated January 6, 1999. I I I I I I I I I I I I I I . I I For over 38 years, Hanifen, Imhoff has provided innovative and reliable financial services to clients throughout the United States. We began in 1960 as the firm 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 firm, providing a full range of investment banking services to our clients throughout the country. The map displayed on the following page depicts the broad reach of our public finance activities. Hanifen, Imhoff has offices in: . Winter Park, Florida (Orlando Regional Office) . Denver, Colorado . Glenwood Springs, Colorado . Omaha, Nebraska The firm's major operating departments include: . Public Finance . Fixed Income Sales and Trading (Tax-Exempt and Taxable) . Corporate Finance . Institutional Equity Sales . Corporate Research PUBLIC FINANCE - SOUTHEAST REGION Hanifen, Imhoff established its Southeastern Regional office in Orlando, Florida in 1995. This decision was driven by the firm's desire and commitment to continue to grow its investment banking presence in Florida and the surrounding southeastern states. The Southeast Region's 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. Due to growth, the Orlando office staff has recently tripled, with near term plans to add additional professionals including an Orlando based Fixed Income Sales and Trading Desk. Hanifen, Imhoff is proud of its track-record, which is attributed to the hard work and diversified talents of the employees at our firm. 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 terms of quality, cost, and timeliness. I I I I I I I I I I States In Which Hanifen, Imhoff Has Completed Transactions . . nnecticut vania w Jersey o~ ii . ~I> & ~ Hawaii Includes Sole, Senior, Co-Manager, Financial Advisor Public Sales, Private Placements and Competitive Sales I Transactions Completed o No Transactions I I I I We propose the following organizational structure in serving the City of Winter Springs. Gary Akers and Jeff Larson will be serving as the primary contact officers, with Ed Stull and Carlos Pereda as the key support officers. Analytical and support services will be provided out of the Winter Park office with pricing and sales support from our headquarters office in Denver, Colorado. I I I Support Officers J -- - --....... ~-- I I Edward D. SlLill. Jr. V iet: President I Anlll)1lclIl Support J -~- --~--- Carlos PercckJ Senior Anulysl PRIMARY CONTACT OFFICERS Marketing ond Pricing Support I _ ___ ____ _ ____ J Asset Finance/Investments I -- ------~- - --- ~~ii=__.r.._:::_---~_-J:-- -:;.--t---- -l~~----- --- ---. '- ---....'----..----~ -. 1- - -- --.,.......,....,-- -----~-_r._--r.~" Mr. Akers is based in our Orlando office and brings over 21 years of underwriting and financial advisory experience in Florida to the firm. This includes managing the Orlando office for Evensen Dodge, a national financial advisory firm, and serving as a 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 5 previous financings for the City of Winter Springs. His recent client relationships include: . Bay County . Escambia Utilities Auth. . State of Mississippi . Seminole County . City of Altamonte Springs . City of Oviedo . V olusia County . City of Melbourne . City of Sunrise . Osceola County . City of Panama City . City of Mt. Dora . Charlotte County I I I 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. I I Based in Orlando, Mr. Larson manages Hanifen, lmhoffs Southeast Regional Investment Banking office. He has successfully closed a wide range of municipal and corporate financings over a 16 year career. Recent experience includes closing a number of water and sewer financings, special assessment issues, district issues and non-advalorem or Covenant to Budget and Appropriate ("CB&A") financings. Recently, he has served as either a Financial Advisor or an Investment Banker to clients such as: I · Kissimmee Utility Authority · Okeechobee Utility Authority . Orlando Utilities Commission · City of Winter Haven . City of Port St. Lucie · City of Fort Pierce . City of Orange City . City of Palm Bay . City of New Smyrna Beach . City of Ft. Lauderdale . Southern States Utilities . City of Stuart . Volusia County IDA . SFWM District . St. Edward's School . Lee County . St. Lucie County . Okeechobee County · Hernando County . Charlotte County . City of Palatka I I 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 County/Bay County Airport, Hope Hospice, Marion County Schools, Sumter County, Southeast Vol usia Hospital District (Bert Fish Medical Center), Baader North America, Hillsborough County Schools, Nova University/Miami 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 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 providing Fortune 1000 corporate and capital markets services. 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 AB. in Business Administration with honors from Franklin & Marshall College, Lancaster, Pennsylvania. His professional licenses include a Series 7, General Securities Representative and Series 63. In addition, he is a NYSE Series 8 Principal and Series 24 NASD General Securities Principal. SUPPORT OFFICERS I~y_____ _ yy-_ _____._ __' AiR~i)isT};;;:;~lr~NT~lc , ,,~.........'__h",,",. ~ ~ ~ _ .., , _ Mr. Stull serves as a Vice President in the Public Finance Department in Hanifen, Imhoffs Orlando 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 (13) 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, I I letters of credit, liquidity facilities, investments, cash management and interest rate hedging products to a variety of clients in the Governmental and Institutional markets. Recent client relationships include: I I . Gainesville Regional Utilities . City of Jacksonville . DeSoto County . Columbia County . City of Kissimmee . City of Green Cove Springs . City of W. Melbourne . St. Lucie County . University of Central Florida . City of Ocoee . Highland County . Rollins College . City of Winter Garden . City of Zephyrhills . Harbor Branch Oceanographic Institute I Mr. Stull is a graduate of the University of Florida, receiving a B.S. in Business Administration with a major in Finance. Mr. Stull is licensed as a Series 63 and Series 7 General Securities Representative. I ~- = -""""'-'.-r. -- 4:-~~"l.r~" --.-::-~-:-::~:1=--~ -"t~r.-~.....,.---:::-----,---~~_- ~-=--~--'-'~L~-cL~"~-'---'-'- .~-~~-.2-<'tt_I-___ __--"~_ .~- ~<. .- ':_ - --;.--L--.;-u:.....-"LUO-L.Li... I Mr. Eckloff manages Hanifen, Imhoffs public finance department and spends considerable time in Florida, especially, the Treasure Coast region. Mr. EckJoff has assisted in the underwriting of over $4 billion in municipal bonds. He is a recognized industry leader and speaks at numerous conferences including the 1999 Florida Bond Buyer's Conference on "The Anatomy of a Rating Upgrade". His 14 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 cities of Port St. Lucie and Fort Pierce. His recent underwriting experience with Florida issues includes: I I I I . Okeechobee Utility Authority . St. Lucie County · City of Port St. Lucie . City of Vero Beach . City of Delray Beach . Village of Royal Palm Beach !!I! 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. As the Rating Specialist at Hanifen, Mr. Perez is responsible for assisting in the analysis of the credit and rating issues for Hanifen clients. He would be available to assist the City and its financing team with the rating strategy for the various bond issues. Prior to joining Hanifen, Mr. Perez spent 20 years at Standard & Poor's analyzing, helping structure, and rating transportation revenue, sales tax revenue and other special revenue bonds for the major issuers in the United States and overseas. He headed up all of the rating analysis work for Standard & Poor's for these sectors. Mr. Perez's recent financing, structuring and rating experience includes most of the major authorities across the country, including those noted below. Mr. Perez's skill and experience at rating bonds is an added value that he brings to any financing Hanifen, Imhoff is involved with. For example, he developed I I the Rating Criteria still being utilized at Standard & Poor's for both stand-alone and subsidized mass transit systems. In addition, he rated the only stand-alone bus transit authority in the country. I . Orange County Convention Center . Florida Turnpike Authority . Greater Orlando Aviation Authority . Miami International Airport · Orlando - Orange County Expressway Authority · City of Stuart . City of Pensacola . Gulf County . Florida Development Finance Corporation I I . City of Pinellas Park . City of Lauderhill . Tampa Utilities . Reedy Creek Improvement District I Mr. Perez received his Bachelor's Degree from St. John's University in New York City. ANALYTICAL SUPPORT I Mr. Pereda serves as the Senior Analyst in the Public Finance Department in Orlando. 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. Some of his recent clients include: I I I . City of Tallahassee (rate design study) . City of New Smyrna Beach, Utilities Authority (annual consulting engineer's report) . !!!! . City of Coral Springs (acquisition, feasibility) . Manatee Agricultural Reuse (financial modeling, capital improvement plan) . Manatee County (valuation, acquisition, rate study) .Miami-Dade Water and Sewer (consulting engineer's annual report, revenue forecasting) .Royal Utility (acquisition, valuation) .Puerto Rico Aqueduct & Sewer Authority (plant inspections, due diligence) Miami-Dade Water and Sewer Department (consulting engineer's report, revenue forecasting) . SEMAPA, Bolivia (financial feasibility, tariffs) . City of Winter Haven (utility acquisition) . City of Palm Bay (utility expansion) 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 Orlando office, Mr. Pereda will provide analytical support to the Hanifen senior bankers. He is a Series 7 General Securities Representative. ~ MS~RADFORD=;ASSOC-rA;iiANAiYST II i::;:'c.;'l;~"--=.,,.~===::;~l~-=;- cr:_-.. ...:::.~-::::'!:"'_--::: l.::-_-=--_-----L-:--;- ~~--- -__---_~'t":-~ "- ~- -- --- c ~ - - - --~ -- _- --- 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 . . I I I 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 work with Mr. Pereda to provide local support and analysis to the Hanifen, Imhoff senior bankers. I 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 $2 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. I I I I I 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. He will be available to provide support, in need, to the local analytics team. MARKETING AND PRICING SUPPORT I Alan Scott is a Managing Director of the Fixed Income Sales Department of Hanifen, Imhoff Inc. 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 $l 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. The Fixed Income staff at Hanifen led by Mr. Scott brings years of experience in selling district, assessment and non-rated issues to the institutional, corporate and high net worth markets. 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 M.B.A. from the University of Chicago with a specialization in Finance. I I ~ OR OF G -r:....-aD:'"'':;n'"~;-~-_-~-~~ - -~-~t- -- '" -.~.~ ~ - ...-- - ~- -- --+ - ___:1.-r- -- -- -~-~~-~~ - -~ -- -- Michael F. Imhoff manages Hanifen Imhoffs syndication and trading desks, overseeing new issue pricing and distribution and directing secondary market trading. He is currently Chairman of the Regional Group with the Bond Market Association. Along with Mr. Eckloff and Mr. Scott, Mike serves on the firm's Credit Committee. Mr. Imhoff has eleven (II) 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, I I I I I I I I I I I I . = = 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. Based in Denver, Deidre has seven (7) years of experience in Municipal Sales and Trading. Prior to joining Hanifen, Imhoff in 1993, she worked in the Capital Markets Department at First Interstate Bank of Denver where her experience includes working with clearing operations and assisting on the trading desk, as well as researching municipal securities. Additionally, she sold income securities to both retail and institutional accounts. Deidre's experience at Hanifen, Imhoff includes trading for retail as well as general market secondary trading. Most recently, she has become responsible for syndicate trading for competitive new issues. She received her Bachelor of Science in Business Administration at Colorado State University and a Masters of Science in Finance at the University of Colorado. ~ I ...........~-=.--,.._--..:r.___~~::t....:.:l:..o't;:I.....z __ "'~"==.h-1;-~-~, ~ '"'="<:'tt!;..".,.,... .,...~..-_ -~_-~-_~~~~-~~ =_,.,-:::t:--.1'"_ --~_"t;:--~ ~ -.~-=-=,-~~':--=, Ms. Leitner has been an officer within the Municipal Securities community since 1968. She has extensive experience as a bond trader, concentrating on regional tax-exempt issues first at Hanifen, Imhoff and later at Boettcher & Co. In 1990, Anita returned to Hanifen, Imhoff to concentrate on the retail sales of fixed income securities to high net worth clients. She now manages Fixed Income accounts as the head of Fixed Income Retail Sales. The client base of Hanifen retail builds on thirty years of expanding regional underwriting and distribution, servicing a diverse clientele in almost all fifty states. Anita has been a long time member of the Colorado Municipal Bond Dealers Association and has been an active supporter of the Colorado Easter Seals Society. ASSET FINANCE/INVESTMENTS SUPPORT .t , II . I . "I, 'I ' . - ,..~", . 0", .., ," "'... ';', ,. u' . .. _ ~ ~.........~ ~c~ , ~ _ .,~ ~ , . '_~ ~ ~._ .... ~.__. _on. ._ ' __.,_ ..._ .~ ,~_ '..n'~'~_'_,_, Mr. Kam recently joined Hanifen, Imhoff specializing in structured finance for the investment banking department. Since 1988, Don, as a lead banker, has been responsible for structuring and pricing over 150 bond issues involving over $6 billion in principal amount. From 1993 to 1995, Don served as financial advisor to the Texas Water Development Board while working as an investment banker with First Southwest Company in Dallas, Texas,. The Texas Bond Bank issues over $250,000,000 in bonds per year. Working with the Board, Don implemented a synthetic floating rate program to manage the financing risk for the Board. A swap structure was implemented with an optional periodic cash settlement which effectively mitigated the negative arbitrage due to the mismatch in asset - liability. In 1996, Don served as investment banker with Bank of America, San Francisco, California and originated a synthetic refunding structure for the City of El Paso, Texas Public Service Board. The Texas Attorney General's office approved only two such transactions in 1996 due to the synthetic nature of financing. The forward floating to fixed rate swap effectively reduced the tax rebate penalty to the IRS and captured over $3,800,000 in present value debt savings. In 1998, working with the City of Tustin Redevelopment Authority, Orange County, California, Don creatively applied rebate regulations and advance refunded a previously non refundable bond issue. The refunding produced over $2,500,000 cash savings to the Authority. Don received a BA in Business Administration from University of Winnipeg, Canada, a BA in Psychology from University of Michigan and an MBA in finance from University of Missouri. I I I Jojy Mathew joined Hanifen Imhoff in 1997, as Vice President of the Asset Finance Group, bringing 8 years of investment banking and capital markets experience. At Hanifen, Jojy is responsible for advising clients throughout the securitization process and structuring asset backed, mortgage backed, leveraged lease and real estate finance transactions. Prior to joining Hanifen, Jojy Mathew was involved in structured finance and asset liability management with his own consulting firm. He also has extensive experience in ABS/CMO/CMBS structuring, real estate and equipment leverage lease structuring, commercial real estate finance, and fixed income research while working for Betawest, Kidder Peabody, SS&C Technologies, and MIS. Mr. Mathew's accomplishments include structuring and placing over $1.5 billion in structured finance and leveraged leasing related transactions, pioneering new methodologies and deal structures for leveraged lease transactions, developing transaction pricing and analytics models, and compiling fixed income research reports. Mr. Mathew received his Bachelor of Science in Business Administration from the University of Colorado at Boulder and his M.S. in finance from the University of Colorado at Denver. I I I I _m I I 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 Pennsylvania. I I I "1. II' ,,' , ,"" . ..- ,. ... . ... . . ..... , ....... - - Mr. New has been with Hanifen, Imhoff since 1994. In 1996, Mr. New was promoted to Manager of Taxable Fixed Income Trading. 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 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. Florida investment clients include the Orlando Utilities Commission, the South Florida Water Management District, City of Port St. Lucie, and City of Orange City to name a few. I I I I I I I I I I I I I I I I I I I 3. Has your firm, or members of your firm, have anYj prior experience as senior manager __ _Qr ~~~~~_-:-geI: on prevlo~s _City~f JY!nteI: Sp!Jngs i~sues? J(s~,J?le~~e d_escrib~~ _ _ _ _ ____ Gary Akers served as Senior Manager on the following City issues prior to joining Hanifen, Imhoff Inc. Summary of Prior Experience $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, Flolida Improvement Revenue Bonds, Series 1984 (Senior Manager) $28.820.000 Total ') I I I I I I I I I I I I I I I I I I I I I . ~~:"~- In the Appendix, we have provided Hanifen, Imhoff's Florida Financing Experience List where we have served as Senior Manager or Co-Manager over the past three (3) years. It is important to note that Hanifen, as ranked by the Bond Buyer, is one of the fastest growing investment banking firms in Florida. As our customer list expands, our high commitment to professional and responsive service also is reflected in our "repeat business" with existing clients. Issue sizes have ranged from $1.6 million for the City of Orange City to over $138 million for the City of Port St. Lucie. This experience list does not include our Florida underwritings prior to 1996 and our pending transactions for a number of clients. I I I I I I I I I I I I I I I I I I I I_I Experience of Team Whether serving as financial advisor or underwriter, contacts with our references and other clients will indicate that this is an area of demonstrated performance for our team. Gary Akers has served major Florida issuers as Financial Advisor or Underwriter for over 21 years. 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. 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. Ed Stull brings extensive credit experience in the governmental market. Nate Eckloff, 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. Prior to joining Hanifen, Ernie Perez spent 20 years at Standard & Poor's analyzing, helping structure, and rating transportation revenue, sales tax revenue and other special revenue bonds a variety of issuers in the United States and overseas. He headed up all of the rating analysis work for Standard & Poor's for this industry sector and his resume was provided for your reference. All of this provides the City with a deep and well balanced team that produces results. Rating Strategy As we have found recently with other comparable issuers (cities of Palm Bay, Winter Haven, etc.), an objective would be to achieve an "A" category underlying rating for the City of Winter Springs. When achieved, this provides the underwriter's sales effort with the ability to differentiate this financing from other insured issues and generate lower interest rates. A lot of effort is put into this process by Hanifen, with demonstrated recent success in Palm Bay (A-), Port St. Lucie (A) and Winter Haven (A). As a recent example of how this effort can directly reduce costs, the "A" rating for Winter Haven helped reduce interest rates by 5 to 10 basis points. As compared to a Miami-Dade County (AIBAA) pricing on the same day and detailed on the attached pricing chart and comparative debt service schedules, this underlying rating helped to save over $760,000 in debt service on a $45,000,000 issue. A copy of our Presentation Outline to the Rating Agencies and Bond Insurance analysts for the Winter Haven financing is attached for your reference. - - ~- -~.~-.::~=-~:=.~-:-...._-- ----.- 2000 3.85 -"2.00i -- .". ___._ _._...._~~9Q ..::-~.~_..~=.:.. ~. 3.95 2~.__ _ ___ ___4.00 2004____ .. __ 4}l!____ ~Q.Q,i .. '.4.15 2006 4.25 ~-.:lQQt~,_.~ ------::-- 430--- 2008 4.40 :''';.2009~~':'':':_-~-:-~.:.:.:3.5jr'. ... " 2010 4.60 ~L ..~ __.._.____:.__..:.:-_ 1-_2!l~2.._.. ___ ......_~J3 ,,- 4.90 r--:;;_...~~.~-.~...~ .... ..-.-... ......... -. -;--.~-=--=-~_-:-:---- .~ - ;..-::---....-----,..-,-. .--.-...... "~,,,,,-- n- -- - -.-.- ...- .-....... .-. -.-- .. _ -. - - -" -.. - ---...-.....,,- - ---- :---;-, .. ..._.____...__". "n" .._....___.______ ...-... _..........._. - ___ _.._ ..__ -- 2016 --=--2011"" -:::-:-:.--:-:-:-::--.~_..~ . -- .. ..-. --. .- 2018 5.13 5.13 --...... ~-~-_._._._-_.....__.- ~ .~2019 ... -" "" .. .:. . .... - .... ...._ ~ .. . 2020 .. ..~..,5}L. . 5.13 ____._...,.~.~-...- .. :"2021 ...~____ . __~_._.__--....J.... .. __ .;.:. _ __ ..::. --.. .-... .~. ." . f---~ . _ _ . . . _ ... _ _=-...,=....-e-"- ..,......... ----:;---. ..-...- =.:_~":"""- - --- .... -- _.-~.._.,-~,--... ""--"-'''-'''--,--- 2024 ..2025-: - . ._.~=-:::::_-- ---..." -.. -- 2026 '- 2..Q?7~-=-. ". - ---:----~___:....;;..:.:.~_..__ __.:. _'~_'__' .............._...._.. .___ "_,_.___.._ ~._______.___. ......_. :.._0..:........__ 2028 5.18 .2029" ~~. '__0':'. ..~~~=~~:==:~..- -~~ .~ .-.~ ._--~ ~ 2030 - - - - Sr. Mgr.: Hanifen, Imhoff City of Winter Haven, Florida $45,015,000 Utility System Improvement and Refunding Revenue Bonds, Series 1998 Sale Date 6/23/98 MBIA Insured Aaal AAA/ AAA Underlying: s&P:A Fitch: A Book.Enb}!.. - - - - - - - - - - - City of Winter Haven, Florida Comparable Interest Yields Municipal Market Data NationaIlndex Municipal Yields Miami - Dade County, Florida $94,854.397 Revenue Bonds, Series 1998 Sale Date 6/23/98 Aaal AMI AAA MBIA Insured Underlying: Moody's: BAAl; Fitch; '" Book Entry &temis..CapitaI North Carolina Medical, NC $41,805,000 Revenue Bonds, Series 1998 Sale Date 6/23/98 Aaal AMI AAA Ottawa County, Ohio $17,020,000 Umited GO Bonds, Series 1998 Sale Dale 6/23/98 Aaal AM 6/22/1998 (1) Insured (AM) General Obligation No Underlying MBIA Insured Book Entry ~pitalMarkels No Underlying AMBAC Insured Book Entry Merrill_Lynch 3.7!1_~ __... .. 3.00-=~-~:.=== _ ~.75-=~~-=~___ __ _ 3.icr-~__ 3.95 3.85 (2) 3.95 _ ___ 4.00 ," ,. -':--4.-05-:- ._~-:- 3.95' .(~_~ =-= ....~ ... ,-~. - - 4;10 _ __ ._. 4.10 4.10 __~(~l 4.15 4.20 4.1,5:":_.._. _. ._. 4.1!!:J~.L___.._~.!!_.. ._. 4.25 ~ ~~ ~ ~~ _---.J~~"___. ~~--.--- 4.30(2) ------ -----:=:= .. - 435 ~j' -- --- ~- -.. 4.35 (2) m -- . 4.40 4.}'!Lf~L_.__ 4.41'U~L~_ 4.40 (~L__._ . ,-----'-____<!'~_.:-'._m_.; .._.._..._.__~rn~_ .:...__...___ 4.50 ~l __._.4.45 (2.L..::.-.~ 4.50 4.45 4.55 (2) 4.50 (2) -4~"~. ---.~.-~-_:.-4.6Q.J~f==:- , .- ---~:4.6S:J~L~":";::;.--..~i~]~E:::.:-.~; -'., 4.70 4.70 (2) 4.70 4.70 (2) ------.-- ---4.80 -- .. __~.!;_8(L.______ ~~~ ~...~__-= ~-___. "j~~_(2L"~::":'= _ ..__ 4.90.. .'__'m' ....4.90 ___.__ ...________ .______4.9~U~___ __._____._____..__.. _.__.., -4.95 _.._. - ..' ___.__ 5.00 ~L.:...~._;.. __~. -0:':. ._n_--":'::"":":"-:' 5.13 5.15 ..'''I.o_:.:.~~_... " -- ~-- -.---~ ....:. ." . ~.~..., _ .:..:.-_-::~':.:'::'t':;;-':..."..:~::: 5.20- -- -. - .__.. .--- _.';"'_.n.-__ _---=-~_=__:l........_'_......:........_..... ..a.~....:.._i._~_ ---.------.--...-.. ---------- ~---- ------.-..---..-- . '-'..' 5.15 ..-----..-------.---.-. ... 5.2Q__ _.. .. - ---...- -- .. . -- -.- -. . -.. .-.-.,.",- .~---..~._._._-- 5.20 5.22 (1) One day lag. June 23rd MMDScaIe represents national marketfor June 22, 1998 (2) Discounled Scrialllonds. Prepared by Hanifen, Imhoff Inc. - - I I I I I I I I I I I I I I I I I I I City of Winter Haven, Florida Value of "A" Underlying Rating on Interest Rates and Total Debt Service Miami-Dade (1) Winter Haven (1) YeaI: AAAf'BAA1" Yields AAAI"A" Yields Difference 2000 3.85% 3.85% 0.00% 2001 3.95% 3.90% 0.05% 2002 4.05% 3.95% 0.10% 2003 4.10% 4.00% 0.10% 2004 4.20% 4.10% 0.10% 2005 4.30% 4.15% 0.15% 2006 4.35% 4.25% 0.10% 2007 4.40% 4.30% 0.10% 2008 4.45% 4.40% 0.05% 2009 4.60% 4.50% 0.10% 2010 4.70% 4.60% 0.10% 2011 4.80% 4.90% -0.10% 2012 4.90% 4.90% 0.00% 2013 5.20% 4.90% 0.30% 2014 5.20% 5.13% 0.07% 2015 5.20% 5.13% 0.07% 2016 5.20% 5.13% 0.07% 2017 5.20% 5.13% 0.07% 2018 5.20% 5.13% 0.07% 2019 5.20% 5.16% 0.04% 2020 5.20% 5.16% 0.04% 2021 5.20% 5.18% 0.02% 2022 5.20% 5.18% 0.02% 2023 5.20% 5.18% 0.02% 2024 5.20% 5.18% 0.02% 2025 5.20% 5.18% 0.02% 2026 5.20% 5.18% 0.02% 2027 5.20% 5.18% 0.02% 2028 5.20% 5.18% 0.02% Total Debt Service 88,868,858 88,105,319 $ 763,539 (2) (1) Both issues priced 6/23/98. (2) Gross Savings as compared to initial estimate of $500,000. I I I I I I I I I I I I I I I I I I I CITY OF WINTER HA VEN, FLORIDA Utility System Improvement & Refunding Bonds, Series 1998 Rating Agency and Bond Insurance Group Presentation Agenda May 18 - 20, 1998 I. INTRODUCTION - (2 Minutes) (Jeff Larson/John Vodenicker) City Officials David Dershimer, Mayor Tom Freijo, Commissioner Carl Cheatham, City Manager Cal Bowen, Finance Director Dale Smith, Public Works Director Project Team Jeff Larson, Managing Director, Hanifen Imhoff Carlos Pereda, Senior Analyst, Hanifen Imhoff John Vodenicker, Financial Advisor, Ernst & Young Gerry Hartman, Consulting Engineer, Hartman & Associates Mike Rocca, Feasibility/Rate Analyst, Hartman & Associates II. DEMOGRAPHIC AND ECONOMIC OVERVIEW OF THE CITY (5 minutes) (Mayor Dershimer) A. Population B. Income Levels C. Local Business D. Major Employers E. Future Growth F. Other Facts G. Handouts (Pictures, Chamber of Commerce, EDC) ill. STRATEGIC OVERVIEW OF UTILITY SYSTEM AND ACOillSITION (5 minutes) (Dr. Freijo) A. Commission Action B. Advantages to City and City Residents C. Due Diligence D. City Staffs Experience IV. CITY MANAGEMENT STRUCTURE AND TEAM (10 minutes) (Carl Cheatham) A. Organization Chart B. Key Personnel's Resumes C. ConservativelProactive Position D. Depth and Stability of Management Team E. Annexation PlanlUtility Acquisition 1 I I I I I I I I I I I I I I I I I I I V. FINANCIAL POSITION OF THE CITY (15 minutes) (Cal Bowen) A. Diverse Revenue Sources B. Fund Balance C. Reserve Fund Policy D. Renewal and Replacement Fund E. Transfer Policy F. GFOA Award for the CAFR BUDGETARY PROCESS OF THE CITY (Cal Bowen) A. Budgetary Controls B. Long Range Capital Improvement Program C. GFOABudgetAward BILLING PROCESS (Cal Bowen) A. Systems B. Utility A and B Approach VI. EXISTING SYSTEMS - HISTORIC OPERATIONS (10 minutes) (Dale Smith) A. Service Area B. Water System C. Wastewater System D. Customers/Customer Service E. Rate Structure/Rate Ordinance F. Regulatory Aspects G. "Combined Utility" Comments VII. GARDEN GROVE ACOUSITION (30 Minutes) A. Summary of Due Diligence Done (Checklist) (Gerry Hartman) 1. Valuation Methodology 2. Feasibility Study 3. Environmental 4. Purchase and Sale Agreement 5. Other A. Description of the New Combined Utility (Gerry Hartman) 1. Service Area (Map) 2. Management of the System a. City Staff b. Additional Staff 3. Water System a. Supply b. Storage c. Treatment Facilities d. Transmission System e. Distribution System 4. Wastewater System 2 I I I I I I I I I I I I I I I I I I I a. Collection and Transmission Facilities b. Flows c. Treatment Plan d. Effluent and Effluent Disposal 5. Customers a. Water 1) Number 2) Type 3) Largest b. Wastewater 1) Number 2) Type 3) Largest 6. Regulatory Aspects 7. Rates and Fees (Mike Rocca) a. Rate Setting Process b. Water c. Wastewater d. Comparison With Other Jurisdictions C. Capital Improvement Plan (Gerry Hartman) 1. Water 2. Wastewater 3. Funding the CIP D. Future of the System (Carl CheathamlDale Smith) 4. City's Due Diligence Process 5. Immediate Demand - Garden Grove System 6. Long-Term Demand - Expected Growth of System Vill. UTILITY REVENUE BOND ISSUE (12 Minutes) A. Source and Uses of Funds (Jeff Larson) 1. Refunding 2. Acquisition 3. CIP 4. Capitalized Interest 5. Debt Service Reserve Fund/Surety 6. Cost of Issuance 7. Debt Structure B. Overview of Bond Covenants (John Vodenicker) 1. Flow of Funds 2. Pledge of Net Revenues 3. Rate Covenant 4. Additional Bonds Test 5. Other Covenants C. Debt Service Coverage (Mike Rocca) 1. Historical 2. Projected - Combined System 3. Sensitivity Flow Analysis - Debt Structure IX. CONCLUSION (1 Minute) (Jeff Larson) 3 I I I I I I I I I I I I I I I I I I I x. 1. Timetable 2. Request for Rates or Insurance OUESTIONS AND ANSWERS (Presentation Team) 4 r _ I I I I I I I I I I I I I I I I I I 01 6. Provide an estimate of total fees and expenses your firm would charge assuming bond insurance for the following sized bond issues. $1 Million - $5 Million $5 Million - $10 Million We have provided below our estimated gross underwriting spreads for your reference. We would be pleased to review these and reach a satisfactory fee schedule with the City and its Financial Advisor based on other recent, comparable Florida financings for each specific Winter Springs bond issue. These fees assume no out-of-state travel and that Mike Williams, Esq., Carlton Fields (or a similar Red Book listed firm) will serve as the City's Bond and Disclosure Counsel. We would reserve the right to retain Underwriter's Counsel to be paid out of our gross spread. These fees also assume that we would work closely with the City and its Financial Advisor to provide any assistance during the financing process - including working with the rating agencies and bond insurers per Question #5. Issue Size Estimated Gross Spread $1 Million - $5 Million Minimum $12,500; $6.00 to $8.00/$1,000 $5 Million - $10 Million Minimum $25,000; $5.00 to $7.50/$1,000 I I I I I I I I I I I I I I I I I I I 7. Please describe your approach to marketing, both rated and non-rated issues, type of investor your would seek and geographic locations where the bonds would be marketed from. Should the issue be non-rated, does your firm have a credit approval _1!..oc~s~? )fso, ~h_l:!t is ~hil1process? _~__ _______~_ ~ - -~ ~~ - A. GENERAL MARKETING STRATEGY FOR THE CITY The best method to achieve the lowest possible cost financing for the City for a rated bond issue is through a well coordinated, effective, broad-based marketing effort that also allows sufficient time for an aggressive pre-sale effort. Our strategy for serving the City will focus on selling to national and regional institutional investors and utilizing Hanifen's High Net Worth Group and other broker dealers through Hanifen's historical network of 900 clearing brokers to sell bonds to the retail sector in your community, throughout the State of Florida and the United States. For a non-rated issue, there is a more limited number of investors. Over forty years of experience in structuring and selling non-rated municipal, assessment and district financings has helped Hanifen develop relationships with these institutional, corporate and accredited high net worth investors. This requires some additional time upfront in analyzing the project, proposed credit structure and pledged revenues, term, legal framework, covenants and pricing. Feedback at the outset is obtained through direct conversations with these investors to determine levels of interest and credit structure/pricing feasibility. To aggressively sell your bonds and help you achieve the lowest possible interest rate, Hanifen will assist the financing team in performing the following: 1. Help Develop a Strong Marketing Document (Preliminary Official Statement or Limited Offer Memorandum). This should be both a disclosure and promotive document. A lot of time is spent here with disclosure counsel, with extra attention and information provided to support non-rated issues. ii. Expand the Market for the Bonds. This is accomplished by widely distributing the Preliminary Official Statement to potential purchasers in Florida and across the nation. Hi. Tareet Institutional Investors and Institutional Investor Conference Calls. A normal part of our effort as either a Senior or Co-Manager. iv. Local Broker Meetings. Hold meetings with Hanifen's local brokers /correspondent dealers to help the local retail sales effort. v. Local "Investor Night". If the City is interested, Hanifen could assist in helping to organize a local meeting or "Investors Forum" with interested local buyers to explain the issue and issuance/purchase process. This has been effective in the past for other issuers in both (i) raising the level of local retail interest and (ii) obtaining positive local media coverage. I I I I I I I I I I I I I I I I I I I vi. Dedicated 800#. Maintain a dedicated 800 telephone number directly to our salesforce and local office. vii. Time the Sale to Achieve the Lowest Possible Rate. We will work with your Financial Advisor to advise the City of the many influences on interest rates including: a) Present interest rate levels and possible trends, b) Anticipated "visible-supply" in the market, c) The availability of money and an analysis of which institutions are participating in the municipal market, d) The future release of economic news, e) The unique attributes of the City's issue, credit strength, and underlying rating (if applicable), f) The level of "retail" interest in the issue, g) The desirability of certain maturity levels, call features, and h) The price and timing of comparable or competing issues. Evaluating these market variables, we will help to provide input to the City on a date to market your bonds. viii. Provide a Post-Marketing Analysis. If requested, and immediately following the sale, we help to prepare an analysis comparing the interest rates the City received to national indices and the interest rates for other comparable Florida issues which have recently sold. This comparison will assure you of the lower possible interest rates. ix. Maintain a secondary market for your bonds. Our reputation with our investors, including non-rated investors, speaks for itself as we maintain an active secondary market for financings. Investors are more likely to buy the City's bonds in the primary market when they know that there will be an active secondary market providing liquidity should they want to sell their holdings. This is especially true for non-rated issues where the investors have obtained comfort from Hanifen standing behind the issues it sells. I I I I I I I I I I I I I I I I I I I Different investors have traditionally purchased tax-exempt bonds with different maturities as depicted in the chart below. , , , , , , , , , 0-7 Y,atl : , 1$.JO rt!ar~ o 10 IS MOlurity (V..rs) 20 2S 30 .,M.'."""4.",H~",,..tr/fiM' B. CREDIT APPOV AL PROCESS 1. Capital Commitments Hani fen , Imhoff is very diligent in determining the capital commitments we make to underwrite bonds for our issuer-clients. With our firm's capital position, assuming a "pre-sale" period, we are comfortable in serving as the Senior Manager for issues up to $300,000,000. Given the financial strength of the City, we do not expect that it will be necessary for our Credit Committee to approve an underwriting for the City's insured financing. 2. Credit Committee Hanifen, Imhoff's credit committee review non-rated issues to determine if Hanifen will use our capital to "support" the issues. For all issues which are rated investment grade ("BBB" or "Baa" or better), approval of the credit committee is generally not necessary. However, if an issue is non-rated, the firm has a process for obtaining approval of the credit committee to determine if the firm will commit its capital to an underwriting. This typically involves the primary bankers making a presentation to the committee and reviewing the credit structure, pledged revenues, feasibility study, covenants, demographics and other due diligence material. Additional information is sometimes requested, with a decision to underwrite then deliberated. I I I I I I I I I I I I I I I I I I I 8. Identify fully the extent to which your firm or individual partners or employees are the subject of any ongoing municipal securities investigation, are a party to any municipal securities litigation or arbitration, or are the subject of a subpoena in connection with a municipal securities investigation. In addition, include any such investigations which concluded in an enforcement or disciplinary action ordered or imposed in the last three years. Hanifen, Imhoff Inc. 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 three (3) years resulting from its role as an investment banker or financial advisor to any state, local governmental or municipal entity. 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. I I I I I I I I I I I I I I I I I I I 9. MSRB Rule G-38: Please indicate whether your firm has retained the services of a consultant who is not regularly employed by the firm who will represent the firm's interest with respect to this RFP. Provide the name of the consultant and the compensation. If the consultant is covered by the firm's most recent G-38 report, you may attach and reference the report. If the consultant is not included in the most recent report, provide the requested information. Please provide a statement of positive assurance indication that your firm and all of its representatives are not presently being investigated or in violation of Rule G-38, or attach a statement describing the current status of such investigations or violations. With respect to MSRB Rule 0-38, we have not retained consultants for the purpose of representing us for this RFP. Neither Hanifen, Imhoff Inc. or any of our representatives are being investigated or in violation of MSRB Rule 0-38. I I I I I I I I I I I I I I I I I I I 10. Will the selection of your firm result in any current or potential conflict of interest? If so, your firm's response must specify the party with which the conflict exists or might arise, the nature of the conflict and whether your firm would step aside or resign from the engagement or representation creating the conflict. Please include Conflict of Interest Statement. The retention of Hanifen, Imhoff will not result in a conflict of interest with the City or any other party we represent. There are no existing or potential conflicts of interest that we are aware of. I I I I I I I I I I I I I I I I I I I CONFLICT OF INTEREST STATEMENT STATE OF FLORIDA CITY OF Winter Springs Before me, the undersigned authority, personally appeared Jeffrey T. Larson. who was duly sworn, deposes, and states: 1. I am theSVP & Managing Director Hanifen. Imhoff Inc with a local office in Winter Park. FL and principal office in Denver CO 2. The Affiant has made diligent inquiry and provides the information contained in this Affidavit based upon his own knowledge. 3. The Affiant states that only one submittal for the project is being submitted and that the above name entity has no financial interest in other entities submitting proposals for the same project. 4. Neither the Affiant nor the above named entity has directly or indirectly entered into any agreement, participated in any collusion, or otherwise taken any action in restraint of free competitive pricing in connection with the entity's submittal for the project. The statement restricts the discussion of pricing data until the completion of negotiations and execution of the Agreement for this project. 5. Neither the entity nor its affiliates, nor anyone associated with them, is presently suspended or otherwise ineligible from participating in contract lettings by any local, state, or federal agency. 6. Neither the entity, nor its affiliates, nor anyone associated with them have any potential conflict of interest due to any other clients, contracts, or property interests for this project. 7. I certify that no member of the entity's ownership or management, or staff has a vested interest in any aspect of or Department of the City. 8. I certify that no member of the entity's ownership or management is presently applying for an employee position or actively seeking an elected position with the City. 9. In the event that a conflict of interest is identified in the provision of services, I, on behalf of the above named entity, will immediately notify the City in writing. DATED this 17th day of February . 1~..:L-. ~ Typed Name of Affiant Senior Vice President & Managing Director Title (Affiant) Sworn to and subscribed before me this 17th day of February 19..22-. ~ ~C61 Notary Pu lic - State of I FL Personally known x OR Produced identification (Type of identification) My Commission expires 2.00 I ,,':\ ANGELA C. BRADFORD 'P.4COMMtSSION 'CC&4BD&& 0.'" EXPIRES MAY lB. 2001 (Printed, typed or stamped commissioned name of notary public) I I I I I I I I I I I I I I I I I I I I I We are pleased to provide the following references and encourage you to contact them. Additional references have been provided. 1. City of Winter Haven 451 3rd Street N.W. Winter Haven, Florida 33883 4. City of Port St. Lucie 121 S.W. Port St. Lucie Blvd. Port St. Lucie, Florida 34984 Mr. Calvin Bowen Finance Director Mr. Frank Blackwell Finance Director Mr. Carl Cheatham City Manager Mr. Don Cooper City Manager Phone: Fax: (561) 871-5189 (561) 871-5203 (941) 291-5613 (941) 297-3027 Phone: Fax: 2. City of Palm Bay 120 Malabar Road, Southeast Palm Bay, Florida 32907 5. Greater Orlando Aviation Authority One Airport Boulevard Orlando, Florida 32827-4399 Ms. Dona Newman Finance Director Ms. Linda Lindsey Director of Finance Mr. Dan Greenfield Deputy City Manager Phone: Fax: (407) 825-2025 (407) 825-2259 Phone: Fax: (407) 952-3400 (407) 952-3401 3. City of Fort Pierce 100 North U.S. 1 Fort Pierce, Florida 34654 Mr. George Bergalis Finance Director Mr. Dennis Beach City Manager Phone: Fax: (561) 460-2200 (561) 489-2594 I I I I I I I I I I I I I I I I I I I OTHER REFERENCES INCLUDE: 1. City of Oviedo 400 Alexandria Boulevard Oviedo, Florida 32765 4. City of Palatka 201 N. Second Street Pal atka, Florida 32177 Mr. Gene Williford City Manager Mr. Allen Bush City Manager Phone: (407) 977-6000 Fax: (407) 977-6009 Ms. Ruby Williams Finance Director Phone: (904) 329-0100 Fax: (904) 329-0106 2. Osceola County 17 S. Vernon Avenue Kissimmee, Florida 34741 Ms. Gale Sittig Commission Auditor 5. Escambia County Utilities Authority 9250 Hamman Avenue Pensacola, Florida 32514 Phone: (407) 847-1200 Fax: (407) 518-4527 Ms. Debra Buckley Finance Director Phone: (904) 969-3320 Fax: (904) 494-7346 3. Seminole County 1101 E. First Street Sanford, Florida 32771 Cindy Hall Director of Fiscal Services Phone: (407) 321-1130 Fax: (407) 328-3248 I I I I I I I I I I I I I I I I I I I 12. In two (2) pages or less, please describe why your firm should be selected as either the ____5enior M~nager or J~o-Manager to the i=~)'~__ _ _____ _ ~ _ _ 1. Experienced Local Team In addition to the Hanifen's over 38 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 financings in Florida and look forward to assisting the City on these important financings. Mr. Larson is a resident of Winter Springs and very sensitive to the City's goals and objectives. Ed Stull brings fourteen years of experience in 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. Ernie Perez brings over 20 years of rating agency experience while at Standard & Poor's to assist with developing the City's rating strategy. 2. Familiarity with the City In addition to Jeff Larson living in the City for a number of years, Gary Akers has previously served the City as an underwriter on numerous financings - including the issue that built City Hall. 3. Proven Sales Performance. Ability to Help Reduce Interest Expense A well rounded team also requires an underwriter who accesses both the institutional and retail/high net worth markets. Hanifen's over 38 years of experience in the municipal markets provides a well established market of first and second tier national and regional investors that other firms simply cannot provide. All of these investors have shown a strong demand for high quality Florida paper as evidenced by Hanifen's ability to aggressively price and distribute its recent Florida Senior Managed issues. Access to, and relationships with, the institutional non-rated investors will assist the City with these financings. A number of Colorado and Western communities have done district, non- rated bonds. which has been. therefore. a demonstrated specialty of our firm. We can host and arrange some local "Investor Forums" to provide Winter Springs' area residents with a first priority to buy some of the City's upcoming bond issues. Pricing comparisons included in this Section for the City of Fort Pierce's non advalorem issue and the Pal atka issue demonstrate our ability to aggressively price comparable Florida bonds. I I I I I I I I I I I I I I I I I I I 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 firm's Florida underwriting ranking by the Bond Buyer jumped 9 places from 1996 to 1997 to number 12 in the State. 5. No Litigation History 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. Emphasis on Relationships We encourage you to contact the Florida references provided. We have called on the City for a number of years, and at your request have focused our efforts most recently with supplying analysis and material to Mr. Lentz, the City's Financial Advisor. 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. - - - - - - Sr. Mgr.: Hanifen, Imhoff City of Fort Pierce, Florida $7,500,000 Capital Improvement Revenue Bonds Series 1998 Sold 3/2/98 FGIC Insured Moody's: Aaa S&P: AAA Book Entry Jf,liIlIMlrl' !!lm@fmf;!iilliilljJJ1illj,.m7im@lllllllj~!m'I.1imr ...:4,.s~....~~..,.;:~~~~~~.", :', ,.~~,..............~.....f."....,. . ""<,..,.....:....,~..-..;-.",l:l:t.~ ~ ......m.~. Y'", '''~<(w..",,,*,oV!;r. .~" ~~~~...............;:..,......~..........~" .' '. ..~..~"....".,.,."... " ..""..;..~..((<.. 2000 3.80 - - - - - - - - - - - City of Fort Pierce, Florida Comparable Interest Yields Municipal Market Data National Index Municipal Yields Charlotte County, Florida $22,655,000 Utility Revenue Bonds Series 1998 Sale Date 3/3/98 Moody's: Aaa S&P: AAA FGIC Insured Book Entry Smith Barney Lenoir County, Tennessee $28,610,000 Revenue Bonds Series 1998 Sale Date 3/2/98 Moody's: AAA S&P: NR AMBAC Insured Book Entry A.G. Edwards - - 3/2/98 Insured General Obli2ation City of Perry, Florida $4,200,000 Revenue Bonds Series 1998 Sale Date 3/9/98 Moody's: NR Fitch: AAA MBIA Insured Registered W.R. HOU2h .I.~l"'''...........'..ill.''''.'''...,_.. 'l",?,'''_'' .,."'."'....."n 'illllll_"""'"'''''''.''' ~W.lil_lilll' """"''''''''j'_'' .*.nn... .m.. . l} ".g.r;lillfJ.-,.j k .. . .:wm#r" t;;)J'l!~.~*~. 'j j1@' . .l;~:.'l n ..80 ""',.1 ~ '\. .<". (""'A' '. .~.. dll;. 1 : ~ ~:.~~ ~~~;,;,~~m~~~~mu ~(ol.. 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'lMr.&fflWI1~1(11_Alllfl%ffi!',mi~iL~~i1mK~ """,,".,,mm woo """,..,. ~llillllloob~'ill . )~iili!!llillllb.dlllll_m Prepared by: Bani/en, Imhoff Inc., Orlando, Florida - - - - - - - - - - - - - - - City of Pal atka, Florida . Comparable Interest Rate Yields Senior Manager - Hanlfell, Imhoff City of Palatka, Florida $7,335,000 Water & Sewer Refunding & Revenue Bonds Series 19~8 8/10/98 FSA Insured Moody's: "Au" SloP: 'AAA" Fitch: "AAA" Yield (% ) Municipal Market Data National Index Municipal Yield 8/10/98 General Obligation Insured City of Jacksonville, Florida $37,310,000 Capital Improvement Revenue and Refunding Bonds, Series 1998 8/10/1998; AMBAC Insured PaineWebber Inc. Moody's: NR SloP: 'AAA' Fitch: 'AAA' Yield(%) City ofTampa, Florida $31,325,000 Water and Sewer Revenue Bonds, Series 1998 8/3/1998; AMBAC Insured Morgan Stanley Dean Witter Moody's: 'Au' S&P:'AAA' Fitch: 'AAA '; · AA.' underlying rating Yield (%) - - - - Nassau County, Florida 515,410,000 Revenue Bonds, Series 1998 8/5/98; MBIA Insured First Union Capital Markets Moody's: NR SloP: 'AAA' Fitch: . 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U.lf.rn..I.JmJlmmL..,Jv.J~b!!m*rs:1JJJ.~,...~m~m.~.....~~.. 2020 5.15 .;: . ::. 202j1:= ;~~;':.-~~'.A~: ~:~~~~f~;;};~;m; E;ii~~H~:';:~f~1SfOS~~!iW~W~Ui~t;~nlm:~fJm~;~mf~!fUf!lHmi&~;~ ~mli~~~rrwmr~1i5mf:m~ff:~ff5m~; gmrrill:;~~fl:rr.l~!rm~!~1~3~i5115-miin-W~m3g~~~th . .. !t::~~~~~llFffffim:!:!;.:t~~~i;;~~~~~~t~f:Uftml~~~::: ::~:::sr:it;F~mij~iUnr.~~~1M~~mu~iii~~llil~ti{m:t'w;.rrffH:m~: :~::!';:':';". ."'I:~!:~' . .:::':.. ;';.:.'. .":::". ..:[:~:if"w;,..,x~:):~>>.:.ir.m;~~>>h-.,.J1)jmloon~~~I?:?:J~h!f:!H:!i!.:m:!'::; ::m.Jill~~mm~hl":"J~~ssmm:H;OOr.: :H:t:: mn~.:m J.J:?m:?~:.~h::~:;::~..wJi!:~::m::fm~;::!i W. mmmmmummm~~~;m~~.,miimmmh1~~!S:m:;i1;.:gH}im~m~Jm ~mm~mgimm!fiimjM~3t;3lii;m~i.":t:.~~l~?:mHw. 2022 5.15 2024 5.16 (1) Discounted Serial Bonds Prepared by HaniIen, Imhoff Inc., Orlando, Florida, August 11, 1998 11IIII....... 1 ;. I , \1 I I 11 . , . ;1 I II il , I \1 , i :1 :1 :1 I I ......~.~~~. NEW ISSUE - BOOK ENTRY ONLY RATINGS: Moody's: Aaa S&P:AAA See "RA11NGS" and "MUNICIPAL BOND INSURANCE" herein FINANCIAL GUARANTY INSURED In the opinion of Bond Coullsel. a~:mming compliance with existing sllltutes. regulatiolls. published mlillgs and court decisions. and assuming continuing compliallce by the City with the covenants described ill the Resolution interest Oil the Series 1998 Bonds ;s excludable from gross illcome Jor federal income tax purposes and is 1I0t an item oj tax preference Jor purposes of the federal alternative minimum tax imposed on individuals and corporations. However. see "TAX EXEMPTION" hereill Jor a descriptioll of the federal alternative millimum tax on corporations and certain other Jederaltax consequences of ownership oj the Series 1998 Bonds. Bond Counsel is Jllrther of the opinion that the Series 1998 Bonds are exempt from all present intangible personal property taxes imposed pursuant to Chapter 199. Florida Statutes. Furthermore. in the opinion of Bond Counsel. based on representations of the City. the Series 1998 Bond.f are "qualified tax-exempt obligations" within the meaning oj Section 265 (b) (3) of the Internal Revenue Code of 1986, as amended. (See "TAX EXEMPTION" herein). $7,500,000 CKTY OF FORT PIERCE, FLORIDA Capital Improvement Revenue Bonds, Series 1998 Dated: March I, 1998 Due: September I, as shown below The City of Fort Pierce, Florida (the "City"), is issuing its Capital Improvement Revenue Bonds. Series 1998 (the "Series 1998 Bonds") only in the form of fully registered bonds in the denomination of $5.000 principal amount or any integral mu]tiple thereof. The Series 1998 Bonds will bear interest at the fixed rates set forth below calculated on the basis of a 360-day year comprised of twelve thirty-days months. Interest on the Series 1998 Bonds is payable semi-annually on each March I and September I. commencing Scptcmher I, 1998. The Series ]998 Bonds, when issued, will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York ("OTC"). Purchases of beneficial interests in the Series] 998 Bonds will be made in book-entry only form. Accordingly, principal of and interesl on the Series 1998 Bonds will be paid by SunTrust Bank, Centml Florida, National Association, Orlando, Florida. as paying agent directly to OTC as the registered owner thereof. OisbutSements of such payments to the DTC Participants is the responsibility of OTC and disbutSements of such payments to the beneficial ownetS is the responsibility of OTC Participants and Indirect Participants, as more fully described herein. Any purchaser as a beneficial owner of a Serics 1998 Bond must maintain an account with a broker or dealer who is, or acts through, a DTC Participant to receive a payment of the principal of and interest on the Series] 998 Bonds. See "THE SERIES 1998 BONOS - Book-Entry Only System" herein. Certain of the Series 1998 Bonds are subject to optional and mandatory sinking fund redemption prior to maturity as set forth herein. The Scries 1998 Bonds are being issued putSuant to Chapter 166. Part II, Florida Statutes. the City Charter and Resolution No. 98-18 of the City Commission of the City of Fort Pierce, Florida, adoptcd February 2, 1998 as amended and supplemented (collectively the "Resolution") to (i) make certain capital improvements within the corporate limits of the City (the "Project"), (ii) purchase a surety for deposit to the Reserve Fund, and (iii) finance the costs of issuance of the Series 1998 Bonds including the municipal bond insurance premium. Pursuant to the Resolution the City has covenantcd and agreed to appropriate in its annual budget. by amendment, if necessary, from Non-Ad Valorem Funds (as described herein) amounts sufficient to pay principal of, Redcmption Price, if any, and interest on the Serics 1998 Bonds when due. Such covenant to budget and appropriate docs not create any lien upon or pledge of such Non-Ad Valorem Funds, nor does it preclude the City from pledging in the future its Non-Ad Valorem Funds. nor does it require the City to levy and collect any particular Non-Ad Valorem Funds, nor does it give the Bondholders a prior claim on the Non-Ad Valorem Funds as opposed to claims of general creditotS of the City. Such covenant to appropriate Non- Ad Valorem Funds is subject in all respects to the payment of obligations secured by a pledge of such Non-Ad Valorem Funds heretofore or hereafter entered into (including the payment of debt service on bonds and other debt instruments). The City has pledged to its outstanding debt certain of its Non-Ad Valorem Funds which pledge is superior to the City's covenant to budget and appropriate sufficient Non-Ad Valorem Funds to pay debt service on the Series 1998 Bonds. The Series 1998 Bonds shall not be or constitute general obligations or indebtedness of the City as "bonds" within the meaning of any constitutional or statutory provisions, but shall be special obligations of the City, payable solely from amounts budgeted and appropriated by the City solely from Non- Ad Valorem Funds in accordance with the terms of the Resolution. No Holder of any Series 1998 Bond shall ever have the right to compel the exercise of any ad valorem taxing power to pay, such Series 1998 Bonds, or be entitled to payment of such Series 1998 Bonds from any moneys of the City except as provided in the Resolution. Payment of the principal of and interest on the Series 1998 Bonds, when due will be guaranteed by a municipal bond insurance policy to be issued simultaneously with the delivery of the Series 1998 Bonds by Financial Guaranty Insurance Company. ~ Financial Guaranty Insurance FGDC. Company "FGIC is a registered servil'e mark used by Financial Guaranty Insurance Company, a private company not affiliated with any U.S. Government agency." For discussion of the temls and provisions of such policy, including the limitations thcreof, see "MUNICI PAL BOND INSURANCE" herein and Appendix "0" hereto. This cover page contains certain information for quick reference only. It is not a summary of the Series 1998 Bonds. InvestotS must re:td the entire Official Statement to obtain information essential to the making of an informed investment decision. MATURITIES, AMOUNTS, INTEREST RATES, AND PRICES OR YIELDS $3,695,000 Serial Bonds Maturity (September 1) 1999 2000 2001 2002 2003 2004 Interest Rate Maturity (September 1) Interest Rate Amount Price Amount Price $245,000 255,000 265,000 275,000 285,000 300,000 3.75% 100% 2005 $310,000 3.80 100 2006 325,000 3.90 100 2007 335,000 3.95 100 2008 350,000 4.00 100 2009 365,000 4.10 100 2010 385,000 $1,720,000,4.90% Term Bonds due September 1, 2014, Price 98.884% $2,085,000, 5.00% Term Bonds due September 1, 2018, Price 97.875%' (plus accrued interest from M:trch I, 1998) The Series 1998 Bonds are offered when, as and if issued and accepted by the: Underwriter subject to the approval of legality by Carlton, Fields, Ward, Emmanuel, Smith & Cutler, P.A., Orlando, Florida, Bond Counsel. Certain other legal mattetS ,viII be passed on for the City by its counsel. John T. Brennan, Esquire, Fort Pierce, Florida and by Carlton, Fields; Ward. Emmanuel. Smith & Cutler, P.A., Disclosure Counsel. Certain legal mattetS will be passed for the Underwriter by its counsel, Dean, Mead, Egerton, Bloodworth, Capouano & Bozarth, P.A., Orlando, Florid:t. Thc Series 1998 Bonds are expected to be: delivered through the facilities of The Depository Trust Company in New York, New York on or about March 19, 1998. = Hanifen, Imhoff Inc. ~---- 4.15% 4.20 4.25 4.35 4.45 4.55 100% 100 100 100 100 100 Dated March 2, 1998 ". -.::. ~.. r. ~ .~.. .. ... " ..;.:.... " ~ ~,..'.~.-: .-, ......." "'';' ~?.''::'~. :f":~" .. 'l~...~~. .':'" i. .~- :.~. :;--....... ~ ........;O;~.;~ ,~. .~ ..:....',~ ...;,..., ,':'.0:: .J ~ {. Ii II I II NEW ISSUE - Book-Entry Only Ratings: Moody's: Aaa S&P: AAA Fitch: AAA ("MBIA" Insured) See "BOND INSURANCE" and "RATINGS" herein In the opinion of Squire, Sanders & Dempsey L.L.P., Bond Counsel, under existing law (i) assuming compliance with certain couenants, interest on the Series 1998 Bonds is excluded from gross income for federal income teu: purposes and is not treated as an item of teu: pt-eference for purposes of the alternatiue minimum teu: imposed on indiuiduals and corporations under the Internal Reuenue Code of 1986, as amended, and (ii) the Series 1998 Bonds and the interest thereon are exempt from teu:ation under the laws of the State of Florida, except estate teu:es imposed by Chapter 198, Florida Statues, and net income and franchise teu:es imposed by Chapter 220, Florida Statutes on interest, income or profits on debt obligations owned by corporations, banks and sauings associations. The interest on the Series 1998 Bonds may be subject to certain federal teu:es imposed on certain corporations, including imposition of the corporate alternatiue minimum teu: on a portion of that interest. (For a more complete discussion of tax aspects, see "TAX EXEMPTIOND herein). I $23,215,000 CITY OF PALM BAY, FLORIDA Utility System Capital Improvement'Revenue Bonds, Series 1998 Dated: December I, 1998 Due: October I, as shown on the inside cover I, t II I Ii The City of Palm Bay, Florida (the "City"), is issuing its Utility System Capital Improvement Revenue Bonds, Scries 1998 (the .Scries 1998 Bonds") only in the form of fully registered bonds in the denomination of $5,000 principal amount or any integral multiple thereof. The Series 1998 Bonds will be initially issued to and registered in the name of Cede & Co., as nominee for The Depository Trust Company ("DTC"), New York, New York, which will act as securities depository for the Series 1998 Bonds. The Series 1998 Bonds will be available to purchasers under the book-entry system maintained by DTC through brokers and dealers who are or act through DTC Participants. Purchasers of beneficial interests in the Series 1998 Bonds will not receive physical delivery of the Series 1998 Bonds, but will be Beneficial Owners (and not registered owners) of the Series 1998 Bonds. For so long as any purchaser is the Beneficial Owner of a Series 1998 Bond, such purchaser must maintain an account with a broker or dealer who is, or acts through, a DTC Participant in order to receive payment ofthe principal of, premium, if any, and interest on such Series 1998 Bonds. See "THE SERIES 1998 BONDS - Book-Entry Only System" herein. Interest on the Series 1998 Bonds is payable semi-annually by check or draft mailed to the Registered Owner thereof at the address shown on the registration books kept by The Bank of New York, New York, New York, the Registrar and Paying Agent, on the 15th day (whether or not a business day) of the month immediately preceding each interest payment dste or by wire transfer to Registered Owners of$I,OOO,OOO or more in principal amount of Series 1998 Bonds as provided in the Resolution (as hereinafter defined), commencing on April 1, 1999, and on each October 1 and April 1 thereafter: Principal of the Series 1998 Bonds and redemption premium, if any, will be payable upon presentation and surrender of the Series 1998 Bonds at the office of the Paying Agent. Certain of the Series 1998 Bonds are subject to optional and mandatory sinking fund redemption prior to maturity as described herein. The Series 1998 Bonds are being issued pursuant to Chapter 166, Florids Statutes, as amended, Ordinance No. 98-34 of the City and Resolution No. 95-20 ofthe City, as amended, restated and supplemented by certain resolutions of the City (collectively, the "Resolution") to (i) make certain capital improvements to the City's Water and Wastewater System (the "Project"), (il) fund the Reserve Fund, (ill) capitalize a portion of the interest to accrue on the Series 1998 Bonds, and (iv) finance the costs of issuance of the Series 1998 Bonds, including the municipal bond insumnce premium. See "THE PROJECT" and "ESTIMATED SOURCES AND USED OF FUNDS" herein. I II I 1.1 .1 I' The Series 1998 Bonds and the interest thereon are secured by and payable solely from (i) Available Revenues as defined in the Resolution derived from the ownership, use or operation of the City's Water and Wastewater System (the "System"), (ii) Main Line Extension Charges, to the extent of the Aggregate Main Line Extension Charges Debt Service Component for the Series 1998 Bonds, and (ill) until applied as provided in the Resolution, the amounts on deposit in certain of the funds and accounts established under the Resolution (collectively, the "Pledged Revenues"). The City has issued pursuant to its Resolution No. 92-75, as amended (the" Senior Resolution") its Utility System Refunding Revenue Bonds, Series 1992A (the "Senior Bonds") currently outstanding in the aggregate principal amount of $6,410,000. Available Revenues are defined pursuant to the Resolution as the amounts, if any, remaining in the revenue fund created pursuant to the Senior Resolution in each month after making all deposits required for such month to the operation and maintenance fund, interest, principal and redemption accounts, the reserve fund and the renewal and replacement fund created pursuant to the Senior Resolution. Pursuant to the Senior Resolution, the City is required to deposit all Gross Revenues of the System into the revenue fund created by the Senior Resolution. The lien of the Series 1998 Bonds on Available Revenues and on the amounts in certain funds and accounts created pursuant to the Resolution is on a parity with the lien thereon of the City's Outstanding Utility System Refunding Revenue Bonds, Series 1994 (the "Parity Bonds") currently outstanding in the aggregate principal amount of $53,270,000. See SECURITY FOR THE SERIES 1998 BONDS" herein. The Series 1998 Bonds shall not be or constitute general obligations or indebtedness of the City as "bonds" within the meaning of the Constitution of Florida, but shall be payable solely from and secured by a lien upon and a pledge of the Pledged Revenues as provided In the Resolution. No Holder or Holders of any Series 1998 Bonds sball ever have the right to compel the exercise of the ad valorem taxing power of the City or tasation of any real or personal property therein, for payment of such principal and interest on the Series 1998 Bonds or the making of any debt service fund, reserve or other payments provided for in the Resolution. The scheduled payment of the principal of and interest on the Series 1998 Bonds is guaranteed under a bond insurance policy to be issued concurrently with the delivery of the Series 1998 Bonds by MBlA Insurance Corporation. ~~~ I", II i ., II I For a discussion of the terms and provisions of such policy, including the limitations thereof, see "BOND INSURANCE" herein and Appendix "E" hereto. I This couer page contains certain information for quick reference only. It is not a summary of the Series 1998 Bonds. bwestors must read the etttire Offu:ial Statement to obtain information essential to the making of!tn informed inuestment decision. The Series 1998 Bonds are offered when, as and if issued and accepted by the Underwriter subject to the approval of legality by Squire, Sanders & Dempsey L.L.P., Jacksonville, Florida, Bond Counsel. Certain other legal matters will be passed on for the City by its Counsel, Nicholas 1<'. Tsamoutales, Esquire, Palm Bay, Florida, and by Carlton, Fields, Ward, Emmanuel, Smith & Cutler, P .A., Orlando, Florida, Disclosure Counsel. A.G. Edwards & Sons, Inc., Tampa, Florida is serving as Financial Advisor to the City in connection with the issuance of the Series 1998 Bonds. The Series 1998 Bonds are expected to be delivered through the facilities of DTC in New York, New York on or about December 8, 1998. I Dated November 17, 1998 ~ a:= Hanifen, Imhoff Inc. Inveslmer'1 Bonkers "( I I I I I I I I I I I I I I I I I I I NEW ISS\1..: - BOOK-ENTRY ONLY RATINGS: Moody's: "Aaa" Standard & Poor's: "AAA" (See "R-\ TINGS" and "MUNIOPAI, BOND INSURANCE" herein) II/ Ihe opil/iol/ uf Sqllire, s"lJlllers & Dempsey LLP.. Special COIll/sel, /11lder exislil/g la... fIIul asslImil/g compli(U1ce lI'ilh caraill CIWel/amS, Ihe 11Oniol/ of Ihe Base Rem paymems paid alld del/omillaled as imae.\'lllllda Ihe Masla Lease (Ihe "Imeresl Punilm") is exelutled from gross illcume for federal iI/come laT pllrposes alld i" I/Ul (III ilem of laT preferellce for pllrposes of Ihe federolallemalh'e mil/imllm IlLT imposed 011 illdil'idllals alld corporoli"I/s IIl1der Ihe IllIenltll Rl!I'elllle Code of /986, as amellded. The Imeresl Poniol/ ""l." be slIbjecllO certaill federal laTeS impused UI/ cenaill corporoliuI/s. illeludillg Ihe (1/lenUllil'e millimllm laT Oil a puni,," of Ihal imeresl, Speci(11 COIll/sel espresses I/O upil/iuII...ilh respeCllO Ihefederal illcome laT cOlISeqllellces of (III." pa."mems deril'edfromilll." sOllrce mha Ihilll Base Rem pa."melll.' millle by Ihe Cily. SIJecial COIlIISel i" funher of Ihe opil/iOIl IIUlllhe Cenificales are exempl from Ihe Florida il/lllIIgible per.wllal propeny ilL[; prol'ideu, ho...el'er, Ihll/llo opilliol/ is expressed ...ilh respecllU Ihe pll)'mem or reponil/g of imallgible persuI/al prupen~' IlLT fol/o...il/g len1litU1lioll of Ihe ,"vlasler Lea.I'e. (For a more complele disCllssiuII of IlLrllspeCIS, see "TAX EXEMPTION" hereil/). $3,330,000 CERTWICATES OF PARTICIPATION City of Port St. Lucie, Florida, Master Lease Project, Series 1997 (Community Center and Emergency Shelter Project) Evidencing Undivided Proportionate Interests of the Owners Thereof in Base Rent Payments to be Made Under a Master Lease Agreement by the City of' Port St. Lucie, Florida Dated: May 1, 1997 Due: September 1, as shown on inside rront cO\'er TIle Cerrificates of Panicipalion. City of Port SI. Lucie, Florida, Masler Lease Proj~ct. Series 1997 (Community Cemer and Emergency Shclter Project) (the "Certificates"), evidence undividL-d proponionale imerests in Base Rem payments (as defined herein) to be madc by the City of Pon SI. Lucie. Aorida (the "City"), under a Master Lease (the "Master Lease"), dated as of May I. 1997, with the Port 51. Lucie Govenlmental Finance Corporation. a Aorida not-for-profil corporation (the "Corporation"). as set fonh on Lease Sch~dule No. 1997 att.1ehed thereto (togcther with Ihe Master Lease, the "Lease"), providing for the I~ase-purchase financing of a multipurpose community eemer and emergency shelter for Ihe City (the "1997 Project Unit"). The Ceniticates are being issued by SunTrust Bank. CentrnJ Aorida, Nalional Association. as Trustee (the ''Trustee'') pursuant 10 the provisions of a Trust Indenture daled as of l\'lay 1. 1997 bctweenlhe Corporation and the Truslee. TIle Imerest Portion of the Base Rem paymenL~ represemed by lhe Certificates is payable on March I and September I of each year (the "Interest Paymem Dates"). commencing September I. 1997. When issued, the Cenific:ues will initially be registered in the nanle of Cede & Co.. as registered owner and nominee for The Depository Trusl Company. New York, Ncw York ("DTC"). Purchasers of the Cenificales (the "Beneficial Owners") willnol receive physical delivery of the Cenificales, Ownership by the Beneficial Owners of the Cenificates will be evidenced Ihrough a book-entry only system of registration. As long as Cede & Co. is the registered owner as nominee of DTC, paymem of the Principal Portion and Imerest Ponion of Ihe Base Rent payments represented by the Cenificates will be made din.'Ctly to Cede & Co.. which will in lum remit such payments to the DTC Panicipants for subsequent disbursement to the Beneficial Owners, TIle Principal Ponion of the Ba.<;c Rent payments represemed by tile Cenificates is payable on the dates and in the amounts set forrh on the inside cover page hereof. upon surrender at the designated corpol'ate oust office of tile Trustee. Individuals may purchase beneficial imereslS in the Cenificatcs in the amount of $5,000 or integral multiples Ihereof. 'l11e Principal Ponions of Base Rent payments represented by the Certificates are subject 10 optional and mandatory prepayment prior to maturity as described herein, The Cenificates are being issued to provide funds for the purpose of (I) paying a ponion of the costs of the acquisition and construction of the 1997 Project Unit to be leased to the City as described hcrein. (2) funding the Reserve Fund Requirement for the Certificates and (3) paying the COSL~ of issuance of the Certiticates, The Lease ha.~ an initial lease lenn commencing on May I, 1997 through and including September 30. 1997 :U1d is automatically renewable annually on each October I through September 30, unless sooner terminated in accordance with the provisions of tile Lease. Pursuam 10 an Assignment Agreement, dated as of May I, 1997. the Corporation will assign to the Trustee for the benefit of tile Owners of the Certificates all of its right. title and interest in and to the Lease by the City. except its rights to indemnification and to cnter into additional Lease Schedules and its obligation not to impair the tax status of the Certificales, but including the right of the Corporation to receive Lease Payments, and all of its right. title and imeresl in and 10 Ihe 1997 Ground Lease described below. Base Rent payments payable by Ihe CilY under the Lease are required to be sufficient to pay the principal of and interest on tile Certificates due in such year. The land on which tile 1997 Project Unit will be conslructed will be lea._ed to the Corpomtion by the City pursuamto a Ground Lea.<;c, dated a.~ of May 1. 1997 (the "1997 Ground Lea.~e"), between the City and lhe Corporation and subleased back to the City pursuant to the Lease. The scheduled payment of the Principal Ponion and the Interest Portion of Base Rent paymenlS represemed by the Cenificates when due will be guaranteed under an insurance policy to be issued concurremly with the delivery of the Certificates by MBIA Insurance Corporal ion (the "Insurer"). (See "MUNICIPAL BOND INSURANCE" herein). ~[@3~ THE BASE RENT PAYMENTS AND. CONSEQUENTLY, THI': CI~RTIJo"ICATE PAYMENTS OF PRINCIPAL AND INTEREST ARI': PAYABLE SOLELY FROM THE OTY'S AVAILABLE REVENUES APPROPRIATED IN EACH YEAR I"OR SUCH PURPOSE. THE BASE RI~NT PAYMENTS ARE SUBJECT TO ANNUAL APPROPRIATION BY THE CITY. THE CERTIFICATE I)A YMENTS OF I'RINCU)AL AND INTEREST AND THE PAYMENTS DUE FROM THE CITY UNDER THE LEASE AND THE CONTRACTUAL OBLIGATIONS OF THE CITY UNDER THE LEASE DO NOT CONSTITUTE A GENERAL OBLIGATION OR A PLEDGE OF THE Jo'AITli AND CREDIT 01" THE CITY. THE STATE OF FLORIDA, OR ANY POLITICAL SUBDIVISION OR AGENCY TIIEREOF WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATlJfORY PROVISIONS OR LIMITATIONS. THE ISSUANCE OF THE CERTIFICATES WILL NOT DIRECTLY OR INDIRECTLY on LIGATE THE CITY, THE STATE OF FLORIDA OR ANY POLITICAL SUBDIVISION OR AGI~NCY THEREOF TO U:VY OR TO PLEDGE ANY FORM OF AD VALOREM TAXATION WHATSOEVER THEREFOR. THE CORPORATION IS A NOT-Jo"OR-PROFIT COIU'ORATION WHICH HAS NO ASSETS SECURING THE CERTlJo"ICATES OTHER THAN THE INTEREST OF THE CORPORATION IN THE 1997 I'ROJECT UNIT AND ANY MONEYS RECEIVED PURSUANT TO THE LEASE. Upon rhe o<:currence of an Evem of Non-Appropriation of Funds. Ihe Lease Tenll of the Lease shall, and upon tile occurrence of an Evcnt of Default the Lease Tcnn may. be terminated with respect to the 1997 Project Unit and the Certificates. No opinion is expressed by Special Counscl as to thc excludability from gross income for federal income I:IX purposes of any payment made to Owncrs of Cenificates following such Icnninalion of the Lease. In addition. following tenninalion of tile Lease, transfer of the Cenificates may be subject to compliance with the registration provision of stale and fcderal securities laws (see ''TAX EXEMPTION" and "RISK FACTORS" herein). Termination of the Lease will not result in termination of the municipal bond insurance policy issued by MBIA Insurance Corporation. (See "MUNICIPAL BOND INSURANCE" herein). Tile Cenificates are oiferedll'lrell, (IS 1II1l1 if delivered ami received by the Ullderwrilel', .wbjecllu lire {/ppr(l\'ill.~ legal Opillioll of SlJllire, Sallders &. Dempsey LLP., Jacksollville. Florida. Special CUlllISel, (/lid cerraill mlrer cUlldilillllS. Cenaill legalmal/ers ...iII be [Illssed Oil fu,. lire Corporaliilll by Roger G. 0,.,., Cily AI/Oriley, ami Sqllire, SllI/ders &. Dempsey LLP.. Miami, Florid,~ Disclosllre Cm/llsel. The Ullde/Wriler is bt'illg represel/led by Deall, Mead. Egenoll, BloOllw0l11r, CapollLIIlo & BOZ1ll11r, PA.. Orlalldu, Florida, Ullde.......riler.s CUllllsel./1 is expecled Ilrat selllemel/l for Ihe Cenijicllles will occllr Ilrrullglr lire facililies of DTC ill New York, New Yurk, Oil or abollt May 28, 1997. ~ Hanifen, ~mhoff Inc. Investment Bankers Dated l\'lay 12. 1997 I I I I I I I I I I I I I . I I I I I l. Ratings: Moody's: Aaa S&P: AAA Fitch: AAA ("MalA" Insured) See "BOND INSURANCE" and "RATINGS" herein In the opinion of Bond Counsel, assuming continuing compliance by the City with various covenants in the Resolution, under existing statutes, regulations, and judicial deci.~ions, the interest on the Series 1998 Bonds will be excluded from gross income for Federal income tax purposes of the holders thereof and. is not an item of tax preference for purposes of the Federal alternative minimum tax imposed on individuals and. corporations. The Series 1998 Bonds are, under existing laws and regulations, also exempt from intangible taxes imposed pursuant to Chapter 199, Florida Statutes, as amended. See uTAX EXEMPTION" herein for a description of alternative minimum tax treatment and certain other tax consequences to Iwlders of the Series 1998 Bonds. NEW ISSUE - BOOK-ENTRY ONLY $45,015,000 CITY OF WINTER HAVEN, FLORIDA UTlILITY SYSTEM IMPROVEMENT AND REFUNDING REVENUE BONDS, SERIES 1998 Dated: July 1, 1998 J?ue: October 1, as shown on the inside cover The City of Winter Haven, Florida (the UCity") is issuing its Utility System Improvement and Refunding Revenue Bonds, Series 1998 (the "Series 1998 Bonds") only in the fonn of fully registered bonds in the denomination of $5,000 principal amount or any integral multiple thereof. The Series 1998 Bonds will be initially issued to and registered in the name of Cede & Co., as nominee for The Depository Trust Company ("OTC"), New York, New York, which will act as securities depository for the Series 1998 Bonds. The Series 1998 Bonds will be available to purchasers under the book-entry system maintained by DTC through brokers and dealers who are or act through DTC Participants. Purchasers of beneficial interests in the Series 1998 Bonds will not receive physical delivery of the Series 1998 Bonds. For so long as any purchaser is the Beneficial Owner of a Series 1998 Bond, such purchaser must maintain an account with a broker or dealer who is, or acts through a OTC Participant in order to receive payment of the principal of, premium, if any, and interest on such Series 1998 Bonds. See "THE SERIES 1998 BONDS - Book-Entry Only System" herein. Interest on the Series 1998 Bonds is payable semi-annually by check or draft mailed to the Holder thereof at the address shown on the registration books kept by First Union National Bank, Jacksonville, Florida, the Registrar and Paying Agent, on the 15th day (whether or not a business day) of the month immediately preceding each interest payment date or by wire transfer to Holders of $1,000,000 or more in principal amount of Series 1998 Bonds commencing on October .t, 1998, and on each April 1 and October 1 thereafter. Principal of the Series 1998 Bonds and redemption premium, if any, will be payable upon presentation and surrender of the Series 1998 Bonds at the office of the Paying Agent. Certain of the Series 1998 Bonds are subject to optional and mandatory sinking fund redemption prior to maturity as set forth herein. The Series 1998 Bonds are being issued pursuant to Chapter 166, Part 11, Florida Statutes, as amended, Resolution No. R-98-13 of the City Commission of the City of Winter Haven, Florida, adopted April 13, 1998, as amended and supplemented by Resolution No. R-98- 21 of the City Commission of the City of Winter Haven, Florida, adopted .June 24, 1998 (collectively, the "Resolution") to (i) acquire certain water and sewer assets presently owned by Garden Grove Water Company, Inc. (the "Acquired System"), (ii) make certain capital improvements to the City's existing Water and Sewer System (the "Existing System") and the Acquired System (the "Project"), (iii) refund all of the outstanding water and sewer debt of the City (collectively, the "Prior Bonds"), (iv) fund the Reserve Fund, and (v) finance the costs of issuance ofthe Series 1998 Bonds including the municipal bond insurance premium. The Series 1998 Bonds and the interest thereon are secured by and payable solely from (i) the Net Revenues as defined in the Resolution derived from the ownership, use or operation of the City's Water and Sewer System (the "System"), (ii) the Sewer System Development Charges as definded in the Resolution, (iii) the Water System Development Charges as defined in the Resolution, and Civ) until applied as provided in the Resolution, the amounts on deposit in the funds and accounts established under the Resolution other than the Rebate Fund (collectively, the "Pledged Revenues"). See "SECURITY FOR THE SERIES 1998 BONDS" herein. The Series 1998 Bonds shall not be or constitute general obligations or indebtedness of the City as "bonds" within the meaning of the Constitution of Florida, but shall be payable solely from and secured by a first lien upon and a pledge of the Pledged Revenues as provided in the Resolution. No Holder or Holders of any Series 1998 Bonds shall ever have the right to compel the exercise of the ad valorem taxing power of the City or taxation of any real or personal property therein, for payment of such principal and interest on the Series 1998 Bonds or the making of any debt service fund, reserve or other payments provided for in the Resolution. The scheduled payment of the principal of and interest on the Series 1998 Bonds is guaranteed under an insurance policy to be issued concurrently with the delivery of the Series 1998 Bonds by MBIA Insurance Corporation. ~~B#J For discussion of the tenns and provisions of such policy, including the limitations thereof, see "BOND INSURANCE" herein and Appendix "0" hereto. This cover page contains certain infonnation for quick reference only. It is not a summary of the Series 1998 Bonds. Investors must read the entire Official Statement to obtain infonnation essential to the making of an informed investment decision. The Series 1998 Bonds are offered when, as and if issued and accepted by the Underwriters subject to the approval of legality by Bryant, Miller and Olive, PA, Tampa, Florida, Bond Counsel. Certain other legal matters will be passed on for the City by its Counsel, Antonello, Fegers & Cea. Winter Haven, Florida. Certain legal matters will be passed on for the Underwriters by their Counsel, Carlton, Fields, Ward, Emmanuel, Smith & Cutler, PA, Orlando, Florida. Ernst & Young LLP, Orlando, Florida is serving as Financial Advisor to the City in connection with the issuance of the Series 1998 Bonds. The Series 1998 Bonds are expected to be delivered through the facilities ofOTC in New York, New York on or about July 15, 1998. ~ Hanifen, Imhoff Inc. Investment Bankers AG. EDWARDS & SONS, INC. Dated June 24,1998 t "I NEW ISSUE - BOOK-ENTRY ONLY RATINGS: Moody's: Aaa S&P:AAA (See "RATINGS" and ''MUNICIPAL BOND INSURANCE" herein) In the opinion of Squire, Sanders & Dempsey L.L.P., Bond Counsel, under existing law (i) assuming compliance with cenain covenants, interest on the Series 1997A Bonds is excluded from gross income for federal income tax purposes and is not treated as an item of tax preference for purposes of the alternative minimum tax imposed on individuals and corporations under the Internal Revenue Code of 1986, as amended (the "Code"); and (ii) the Series 1997A Bonds and the income thereon are exempt from tQXQtion under the laws of the State of FloridJJ, except estate taxes imposed by Chapter 198, FloridJJ Statutes, and net income and franchise taxes imposed by Chapter 220, F[oridJJ Statutes, on interest, income or profits on debt obligations owned by corporations, banks and savings associations. The interest on the Series 1997A Bonds may be subject to cenain federal taxes imposed only on cenain corporations, including imposition of the corporate alternative minimum tax on a ponion of that interest. (For a more complete discussion of tax aspects, see "DlX EXEMn70N" herein.) $17,955,000 CITY OF POR.T ST. LUCIE, FLORIDA SPECIAL ASSESSMENT BONDS, SERIES 1997 A (ASSESSMENT DISTRICT NO.1, PHASE n - WATER AND SEWER EXTENSION PROJECT) Dated: February 15, 1997 Due: October 1, as shown below The Special Assessment Bonds, Series 1997A (Assessment District No. I, Phase II .:.... Water and Sewer Extension Project) (the "Series 1997A Bonds") of the City of Port St. Lucie, Florida (the "City"), will be issued only as fully registered bonds in the denomination of $5,000 or any integral multiple thereof and will be initially registered only in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ("DTC"), which will act as securities depository for the Series 1997A Bonds. The Series 1997A Bonds will be available to purchasers only under the book-entry system maintained by DTC through brokers and dealers who are, or act through, DTC Participants. Purchasers will not receive delivery of the Series 1997A Bonds. So long as any purchaser is the Beneficial Owner (as defined herein) of a Series 1997A Bonds, he must maintain an account with a broker or dealer who is, or acts through, a DTC Participant to receive payment of principal of and interest on such Series 1997A Bond. See "DESCRIPTION OF THE SERIES 1997A BONDS - Book-Entry Only System" herein. Interest on the Series 1997A Bonds will be payable semiannually on April] and October 1 of each year, commencing on October 1, 1997. Certain of the Series 1997A" Bonds are subject to optional, mandatory and special mandatory redemption prior to maturity, as more fully described herein. The City anticipates that a significant portion of the Series 1997A Bonds will be redeemed prior to their respective maturity dates. See "DESCRIPTION OF THE SERIES 1997A BONDS - Redemption Provisions." The Series 1997A Bonds are being issued under the authority of, and in full compliance with, the Constitution and Statutes of the State of Florida, Ordinance No. 94-35 (the "Master Bond Ordinance"), as supplemented by Ordinance No. 94-37, enacted by the City Council of the City (the "City Council") on July 25,1994, as amended and supplemented and particularly as supplemented by Resolution No. 97-R7, adopted on February 24,1997 (collectively, the "Series Ordinance", and, together with the Master Bond Ordinance, the "Bond Ordinance"), and other applicable provisions of law, to (i) finance a portion of the costs of acquiring and constructing certain water and sewer additions, extensions and improvements to the City's existing water and sewer utility system within Special Assessment District No. I, Phase II (the "1997A Project"), (ii) purchase a Reserve Account Credit Facility (as defined herein) for deposit to the 1997A Bonds Reserve Subaccount (as defined herein), and (iii) pay certain expenses related to the issuance and sale of the Series 1997A Bonds. See "THE 1997A PROJECf" herein. The Series 1997A Bonds, the redemption premium, if any, and the interest thereon are limited, special obligations of the City payable from and secured solely by a pledge of and lien on the Pledged Revenues (as defined herein). For a discussion of the security for the Series 1997A Bonds, see "SECURITY FOR THE SERIES 1997A BONDS" herein. The City has received a commitment from MBIA Insurance Corporation to issue a municipal bond financial guaranty insurance policy insuring the payment of principal of and interest, when due, on the Series 1997A Bonds. See "MUNICIPAL BOND INSURANCE" herein. biYi)1Il[)A] The Series 1997A Bonds do not constitute general obligations or indebtedness, or a pledge of the faith, credit or taxing power, of the City or oCthe State of Florida or any agency or political subdivision thereof, but are limited, special obligations oCthe City, the principal of, redemption premium, if any, and interest on which are payable from and secured solely by the Pledged Revenues. Neither the City, nor the State of Florida or any agency or political subdivision thereof will be obligated (i) to exercise its ad valorem taxing power or any other taxing power in any form on any real or personal property to pay the principal of, redemption premium, if any, or interest on the Series 1997 A Bonds, or other costs incident thereto, or (ii) to pay the same from any funds of the City except from the Pledged Revenues described herein, in the manner provided in the Bond Ordinance. The Series 1997A Bonds do not constitute a lien upon the 1997A Project or any property of the City or within or without the City, other than the Pledged Revenues in the manner provided in the Bond Ordinance. MATURITIES, AMOUNTS, INTEREST RATES AND PRICES OR YIELDS $7,125,000 Serial Bonds Interest Price or Maturity Rate Yield (October 1) Amount 3.60% 3.60% 2002 $680,000 3.85 3.85 2003 710,000 4.00 4.00 2004 745,000 4.20 4.20 2005 775,000 4.30 4.30 2006 815,000 $4,720,000 5.20% Term Bonds, due October 1, 2011, Price 98.991% $6,110,000 5.40% Term Bonds, due October 1, 2016, Price 98.220% (Accrued interest, from February 15, 1997, to be added) The Series 1997A Bonds are offered when, as and if issued and accepted by the Underwriters, subject to the opinion on certain legal matters relating to their issuance by Squire, Sanders & Dempsey L.LP., Jaclcsonville, Florida, Bond Counsel. Certain legal matters will be passed on for the City by Roger G. Orr, City Attorney; and Squire, Sanders & Dempsey LL.P., Miami, Florida, Disclosure Counsel. The Underwriters are being represented by Dean, Mead, Egerton, Bloodworth, Capouano & Bozarth, Orlando, Florida, Underwriters' Counsel. It is expected that settlement for the Series 1997A Bonds will occur through the facilities of DTC in New York, New York, on or about March 12, 1997. This cover page contains certain infoT71llJtion for quick reference only. It is not a summary of this issue. Investors must read this entire official statement to obtain infoT71llJtion essential to making an informed investment deCiSion. . I I I ~~ I .~ I :.~j , ;1 '1 . I I i . .~ I J , I :::;1 !:~ [I :~-1 , <..; :- .~ .:, :1 J :1 ,:) ! Maturity (October 1) 1997 1998 1999 2000 2001 Amount Interest Rate 4.35% 4.45 4.55 4.65 4.75 Price or Yield 99.753% 99.716 99.681 99.648 99.617 $940,000 580,000 600,000 625,000 655,000 la' Hanifen, Imhoff Inc. =Irao'IItTwdBr:rilels Dated: February 24, 1997 Prager, McCarthy & Sealy The Leedy Corporation I I I I I I I I I I I I I I I I I I I NEW ISSUE INSURED See "BOND INSURAi"l'CE" herein In the opinion of Squire, Sanders & Dempsey U..P., Bond Counsel, under exi1.ting law Ii) tlu? Series 1998 Bonds and the income tlu?reon are exempt from tamtion under the laws of the State of Florida, e:a:ept estate f.ax2s imposed fly Chapter 198, Florida Statutes, and net income and fmTlJ:hise taxes imposed fly Chapter 220, Florida Statutes, on interest, income or profits on debt obligations owned by corporations, banks and savings associations, and Iii) as.~uming compliaru:e with certain couenants, interest on the Series 1998 Bonds is =luiled from gross income for federal income tax purposes and is Mt treated as an item of tax preference for purposes of the alternative minimum tax imposed on individuals and corporations under the Internal Revenue Code of 1986, as amended (the .Code"). Interest on the Series 1998 Bonds mny be subject to certain federal taxes imposed only on certail1 corporations, iTIJ:luding the corporate alternative minimum tax on a portion of that interest. (For a more complete discussion of tax aspects, see "TAX EXEMPTION" hereinJ $14,920,000 ST. LUCIE COUNI'Y, FLORIDA SPECIAL ASSESSMENT REFUNDING BONDS, SERIES 1998 (SOUTH HUTCmNSON ISLAND WASTEWATER SYSTEM) Due: November 1 in each year, as shown below Interest on the Special Assessment Refunding Bonds, Series 1998 (South Hutchinson Island Wastewater System) (the "Series 1998 Boni!);") of Sl Lucie County, Florida (the "County"), will aa:rue from July 1, 1998, and will be payable on November 1, 1998, and semiannually thereafter on May 1 and November 1 of each ye:rr (the "Interest Payment Dates") to their respective dates of maturity by check or draft. of First Union National Bank, Jacksonville, Florida, as Registrar and Paying Agent, made payable and mailed to the persons in whose names the 1998 Bonds are registered, as shown at the close of business on the fifteenth day (whether or not a business day) of the calendar month next preceding an Interest Payment Date, on the registration books kept by the Registrar or, such payment will, upon the written request and at the expense of the Registered (}w1ler of One Million Dollars ($1,000,000) or more in principal amount of 1998 Bonds, be made by wire transfer or other medium acceptable to the County and the Registered Owner. Principal of and redcmption premium, if any, on the 1998 Bonds are payable to the Registered Owncr upon presentation and surrender thereof on the date fixed for maturity or redemption at thc designated corporate trust office of the Paying Agent. The Series 1998 Bonds will be issued as fully registered Bonds in the denomination of$5,OOO or any integral multiple thcreof. See "DESCRlPl'ION OF THE SERIES 1998 BONDS" herein. Certain of the Series 1998 Bonds are subject to optional, mandatory and special mandatory redemption prior to maturity, as more fully described herein. See "DESCRIPl'ION OF TIlE SERIES 1998 BONDS. Redemption Provisions" herein. The Series 1998 Bonds are being issued pursuant to Chapter 125, Part I, Florida Statutes, Section 1-13.5, Sl Lucie County Code and Compiled Laws, County Ordinance No. 87-77, as amended by County Ordinance No. 95-06, and other applicable provisions of law (collectively, the "Act"), Resolution No. 95-208, adopted by thc Board of County Commissioners (the "Board") of the County on October 13, 1995 (the .Original Bond Resolution") as supplemented by Resolution Nos. 98-110 and 98-159, adopted by the Board on May 12, 1998, and June 23, 1998, respectively (oollectively, the "Series 1998 Bond Resolution") (collectivcly, the "Bond Resolution"), to provide funds for thc plllJlOSe of(l) refunding the County's outstanding Special Assessment Bonds, Series 1995 (South Hutchinson Island Wastewater System), dated October I, 1995, which financed the cost of the acquisition and construction of a wastewater treatment and efDuent disposaVreuse system on South Hutchinson Island (the "1995 Project"), (2) funding a Reserve Account for the Series 1998 Bonds, and (3) paying certain expenses related to the issuance and sale of the Series 1998 Bonds. See thc discussion under the headings "PURPOSE OF THE SERIFS 1998 BONDS; "PLAN OF REFUNDING; and "SOURCES AND USES OF FUNDS" herein. Thc principal of, premium, if any, and interest on the Series 1998 Bonds are limited, special obligations of the County p.1yable from and secured solely by a pledge of and lien on (1) the Special Assessments collected with respect to the lands and real estate within the County specifically benefitted by the 1995 Project, (2) the Investment Earnings, and (3) the moneys on deposit in the Sinking Fund and accounts therein and the Project Fund until applied in accordance ....ith the provisions of the Resolution (collectively, the "Pledged Revenues"). For a more complete desaiption of the security and sow"ccs of payment for the Series 1998 Bonds, see the information under the heading "SECURITY FOR THE SERIES 1998 BONDS" herein. See also "INVESTMENT CONSIDERATIONS; herein. Payment of the principal of and interest on the Series 1998 Bonds, when due, will be guaranteed by a municipal bond insurance policy to be issued by Ambac Assurance Corporation, simultaneously with the delivcry of the Series 1998 Bonds. For a discussion of the terms and provisions of such policy, including the limitations thereof, see "MUNICIPAL BOND INSURANCE" herein. Dated: July I, 1998 1JWrrJu1b81@ THE SERIES 1998 BONDS AND TIlE PREMIUM, IF ANY, AND INTERESf TIlEREON DO NOT CONSTITUTE A GENERAL OBLIGATION OR INDEBTEDNESS OF THE COUNTY AS "BONDS" WITHIN THE MEANING OF THE CONSflTUTlON OF THE STATE OF FLORIDA, BUT ARE PAYABLE FROM AND SECURED SOLELY BY A LIEN UPON AND PLEDGE OF TIlE PLEDGED REVENUES AS DEFINED, AND IN TIlE MANNER PROVIDED,IN TIlE BOND RESOLUTION. NO REGISTERED OWNER OF ANY SERIES 1998 BONDS SHALL EVER HAVE TIlE RIGHT TO COMPEL THE EXERCISE OF TIlE AD VALOREM TAXING POWER OF TIlE COUNTY OR TAXATION IN ANY FORM OF ANY REAL OR PERSONAL PROPERTY THEREIN TO PAY TIlE SERIES 1998 BONDS OR TIlE PREl\UUM, IF ANY, AND INTEREST THEREON, OR TO COMPEL THE COUNl'Y TO PAY THE SERIES 1998 BONDS, OR THE PREMIUM, IF ANY, AND INTERESf TIlEREON FROM ANY FUNDS OF THE COUNTY, EXCEPl' THE PLEDGED REVENUES. THE SERIES 1998 BONDS AND THE PREMIUM, IF ANY, AND INTERESf THEREON DO NOT CONSTITUTE A LIEN ON TIlE SYSTEM, THE 1995 PROJECT OR ON ANY PROPERTY OF OR IN THE COUNTY OTHER THAN THE PLEDGED REVENUES AS DEFINED, AND IN THE MANNER D~RIBED,IN TIlE BOND RESOLUTION. MATURITIES, AMOUNTS, INTERESf RATES AND PRICES OR YIELDS $5,460,000 Serial Bonds Interest Price or Maturity Principal Rate Yield <November 1) Amount 3.65% 3.65% 2006 $390,000 3.90 3.90 2007 405,000 4.00 4.00 2008 425,000 4.05 4.05 2009 445,000 4.10 4.10 2010 465,000 4.15 4.15 2011 485,000 4.20 4.20 2012 510,000 $3,635,000 5.00% Term Bonds, due November I, 2018, Price 97.748% $5,825,000 5.00% Term Bonds, duc November I, 2025, Price 96.951% (Plus Accrued Interest From July 1, 1998) The Series 1998 Bonds are offered when, as and ifissued by the County, and received fly the Underwriters, subject to the opinion on certain legal matters relating to their issunru:e by Squire, Sanders & Dempsey LL.P., Bond Counsel to the County. Certain legal matters will be passed upon for the County by Da1liel S. McI1ltyre, Esquire, County Attorney, and by Squire, Sanders & Dempsey L.L.P., Disclosure Counsel. The UluIenvriters are being represented fly Dean, MeCld, Edgerton, Bloodworth, Capouano & Bozarth, P A, Orlando, Floridn, Counsel to the UruIenl.lriters. William R. Hough & Co., is acti1lg as FinaTIJ:ial Advisor to tire County. It is expected that the Series 1998 Bond.~ in definitive form will be available for deliuery to the Underwriters 011 or about July 16, 1998. This couer page contains certain information for quick refereru:e omy. It is /l!1l. a summnry of this issue. lrwestors must recul tile entire Oflicial Statement to obtain informntion esse1ltial to making an informed investment decision. Maturity <November 1) 1999 2000 2001 2002 2003 2004 2005 Principal Amount $300,000 305,000 320,000 3.'30,000 345,000 360,000 375,000 Interest ~ 4.30% 4.35 4.45 4.55 4.65 4.75 4.90 Price or Yield 4.30'70 4.35 4.45 4.55 99.5.'30 99.506 4.90 ~ Hanifen, ~mhoff Inc. Investment Benkers - RAYMOND JAMES & ASSOCIATES, INC. Dated: July 2, 1998 ~ I' I NEW ISSUE - BooK.ENTRY ONLY RATINGS: Moody's: Aaa s& P: AAA Fitch: AAA (See "RATINGS" and "MUNICIPAL BOND INSURANCE" herein) In the opinion of Squire, Sanders & Dempsey L.L.P., Bond Counsel, under existing law (i) ~suming compliance with certain covenants, interest on the Series 1998A Bonds is excluded from gross income for federal income tax purposes and is rwt an item of tCJ% preference for purposes of the alternative minimum tax imposed on individuals and corporations under the Internal ReL'enue Code of 1986, as amended (the .Code"); and (iiJ the Series 1998A Bonds and the income thereon are e:rJ!mpt from taxation under the laws of the State of Florida, euept estate UmlS imposed by Chapter 198, Florida Statutes. and net income and franchise UmlS imposed by Chapter 220, Florida Statutes, on interest, income or profits on debt obligations owned by corporations, banks and savings associations. The interest on the Series 199M Bonds may be subject to certain federal UmlS imposed only on certain corporations, including imposition of the corporate alternative minimum tax on a portion of that interest. (For a more complete discussion of tax aspects, see "TAX EXEMPTION" herein.) $65,455,000 CITY OF PORT ST. LUCIE, FLORIDA SPECIAL ASSESSMENT BONDS, SERIES 1998A (UTll...ITY SERVICE AREA NO.3 & 4 . WATER AND WASTEWATER EXTENSION PROJECT) Dated: July 15, 1998 Due: October 1, as shown below The Special Assessment Bonds, Series 1998A (Utility Service Area No.3 & 4 - Water and Wastewater Extension Project) (the "Series 1998A Bonds") of the City of Port St. Lucie, Florida (the .City"), will be issued only as fully registered bonds in the denomination of $5,000 or any integral multiple thereof and will be initially registered only in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ("DTC"), which will act as securities deJlO5itory for the Series 1998A Bonds. The Series 1998A Bonds will be available to purchasers only under the book-entry system maintained by DTC through brokers and dealers who are, or act through, DTC Participants. Purchasers will not receive delivery of the Series 1998A Bonds. So long as any purchaser is the Beneficial Owner (as defined herein) of a Series 1998A Bond, he must maintain an account with a broker or dealer who is, or acts through, a DTC Participant to receive payment of principal of and interest on such Series 1998A Bond. See "DESCRIPTION OF THE SERIES 1998A BONDS - Book-Entry Only System" herein. Interest on the Series 1998A Bonds will be payable semiannually on April 1 and October 1 of each year, commencing on April 1, 1999. Certain of the Series 1998A Bonds are subject to optional, mandatory and special mandatory redemption prior to maturity, as more fully described herein. The City anticipates that a significant portion of the Series 1998A Bonds will be redeemed prior'to their respective maturity dates. See "DESCRIPl'ION OF THE SERIES 1998A BONDS. Redemption Provisions." The Series 1998A Bonds are being issued under the authority of, and in full compliance with, the Constitution and Statutes of the State of Florida, Ordinance No. 94-35 (the "Master Bond Ordinance") enacted by the City Council of the City (the "City Council") on July 25, 1994, as supplemented by Ordinance Nos. 97-25 and 97-26, enacted by the City Council on April 14, 1997, as amended and supplemented by Ordinance No. 98-42 enacted on June 8, 1998, and as supplemented by Resolution No. 98-R55, adopted on July 20, 1998 (collectively, the "Series Ordinance", and together with the Master Bond Ordinance, the "Bond Ordinance"), and other applicable provisions of law, to (i) finance a portion of the costs of acquiring and constructing certain water and wastewater additions, extensions and improvements to the City's existing water and wastewater utility system principally within USA No.3 & 4 (the "1998A Project"), (ii) purchase a Reserve Account Credit Facility (as defined herein) for the credit of the 1998A Bonds Reserve Subaccount (as defined herein), and (ill) pay certain expenses related to the issuance and sale of the Series 1998A Bonds. See "ESTIMATED SOURCES AND USES OF F1JNDS" and "THE 1998A PROJECT' herein. The Series 1998A Bonds, the redemption premium, if any, and the interest thereon are limited, special obligations of the City payable from and secured solely by a pledge of and lien on the Pledged Revenues (as defined herein). For a discussion of the security for the Series 1998A Bonds, see "SECURITY FOR THE SERIES 1998A BONDS" herein. The City has received a commitment from MBlA Insurance Corporation to issue a municipal bond financial guaranty insurance policy insuring the payment of principal of and interest, when due, on the Series 1998A Bonds. See "MUNICIPAL BOND INSURANCE" herein. MIBlIA! The Series 1998A Bonds do not constitute general obligations or indebtedness, or a pledge of the faith, credit or taxing power, of the City or of the State of Florida or any agency or political subdivision thereof, but are limited, special obligations of the City, the principal of, redemption premium, if any, and interest on which are payable from and secured solely by the Pledged Revenues. Neither the City, nor the State of Florida or any agency or political subdivision thereof will be obligated (i) to exercise its ad valorem taxing power or any other taxing power in any form on any real or personal property to pay the principal of, redemption premium, if any, or interest on the Series 1998A Bonds, or other costs incident thereto, or (ii) to pay the same from any funds of the City except from the Pledged Revenues described herein, in the manner provided in the Bond Ordinance. The Series 1998A Bonds do not constitute a lien upon the 1998A Project or any property of the City or within or without the City, other than the Pledged Revenues in the manner provided in the Bond Ordinance. I I I I I I I I I I I I MATURITIES, AMOUNl'S, INTEREST RATES AND YIELDS $32,095,000 Serial Bonds Interest Bak XWd Maturity Ammm1 3.70% 3.70% 2005 $2,690,000 3.85 3.85 2006 2,805,000 3.95 3.95 2007 2,925,000 4.05 4.05 2008 3,055,000 4.10 4.10 2009 3,195,000 4.15 4.20 2010 3,340,000 $11,015,000,5.00% Term Bonds, due October I, 2013 ,Price 99.258% $22,345,000,5.00% Term Bonds, due October 1, 2018, Price 97.756% (Accrued interest from July 15, 1998 to be added) The Series 1998A Bonds are offered when, as and ifissued and accepted by the Underwriter, subject to the opinion on certain legal matters relating to their issuance by Squire, Sanders & Dempsey L.L.P., Jacksonville, Florida, Bond Counsel. Certain legal matters will be passed on for the City by Roger G. Orr, City Attorney, and Squire, Sanders & Dempsey L.L.P., Miami, Florida, Disclosure Counsel. The Underwriter is being represented by Simmons & Clyne, PA, Port St. Lucie, Florida. It is expected that settlement for the Series 1998A Bonds will occur through the facilities ofOTC in New York, New York, on or about July 28, 1998. This cover page contains certain information for quid reference only. It is l1J1l. a summary of this issue. Investors must read this entire offU:ial statetnent to obtain information essential to maki"lf an informed investment decision. Maturity 1999 2000 2001 2002 2003 2004 Ammm1 $2,130,000 2,210,000 2,295,000 2,385,000 2,480,000 2,585,000 Interest ~ 4.25% 4.35 4.40 4.50 4.55 4.65 Yield 4.30% 4.40 4.45 4.50 4.60 4.70 I I I I m. Hanifen, Imhoff Inc. Investment Bankers I Dated: July 20, 1998 T -.--- .. -:- _ ..,- _ __4 _ '<i,i --.- --- -. '.' -_. . _ .'__n... .....~_..._~ ""':'''' -:-__:-_":.___.......;.~:-. .' I I I I I I I I I I I I I I I I I I I RATINGS: Standard & Poor's: "AAA" Moody's: "Aaa" Fitch IBCA: "AAA" (Financial Security Assurance Inc. Insured) NEW ISSUE - Book Entry Only In the opinion of Bond Counsel, assuming continuing compliance by the City with the Internal Revenue Code of 1986, as amended, interest on the 1998 Bonds is, under existing law, ext:luded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, although such interest is taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on corporations. However, ownership of the 1998 Bonds by certain classes of taxpayers may have certain adverse federal tax consequences. (See "Tax Exemption. herein.) In addition, in the opinion of Bond Counsel, the 1998 Bonds and the income thereon are exempt from taxation under Florida law, ext:ept estate taxes and taxes imposed by Chapter 220, Florida Statutes, on interest, income or profits on debt obligations owned by corporations. Based upon certain representations and findings made by the City upon the issuance of the 1998 Bonds, the 1998 Bonds are "qualified tax-exempt obligations" within the meaning of Section 265(b)(3} of the. Internal Revenue Code of 1986, as amended (See "Tax Exemption" herein). $7,335,000 CITY OF PALATKA, FLORIDA WATER AND SEWER SYSTEM IMPROVEMENT AND REFUNDING REVENUE BONDS SERIES 1998 Dated: August 1, 1998 Due: October 1, as shown below The City of Pal atka, Florida (the "City") Water and Sewer System Improvement and Refunding Revenue Bonds, Series 1998 (the "1998 Bonds"), are being issued to, together with available City monies and grant monies (i) pay the cost of refunding the City's outstanding utility system debt; (ii) construct renovations and improvements to the City's combined water and wastewater system (the "System"); (iii) fund a debt service reserve account for the 1998 Bonds; and (iv) pay for costs of issuance of the 1998 Bonds including the costs for municipal bond insurance. The 1998 Bonds are to be issued by the City in fully registered form, without coupons, in denomination of $5,000 principal amount each or integral multiples thereof, and will bear interest at the annual rate specified on this cover page of the Official Statement, commencing as of the date of delivery. Interest on the 1998 Bonds is payable on April 1 and October 1 of each year commencing October 1, 1998 by check or draft mailed to the registered owners of the 1998 Bonds, or at the request and expense of a registered owner of $1,000,000 or more in principal amount of the 1998 Bonds, by bank wire transfer. The 1998 Bonds when issued, will be registered to Cede & Co., as registered owner and nominee of The Depository Trust Company, New York, New York ("DTC"), to which all payments of principal, redemption price, if applicable, and Interest with respect to the 1998 Bonds will be paid. DTC will act as securities depository for the 1998 Bonds. Individual purchases of beneficial interests in the 1998 Bonds will be made in book-entry form only in principal amounts of $5,000 and any integral multiples thereof. Purchasers of beneficial interests in the 1998 Bonds will not receive physical delivery of bond certificates. Transfer of beneficial ownership interests in the 1998 Bonds will be effected through the DTC book-entry system as described herein. See "DESCRIPTION OF THE 1998 BONDS - Book Entry Only System" herein. The 1998 Bonds are subject to redemption prior to maturity in the manner specified herein. The payment of the principal of and interest on the 1998 Bonds is payable solely from a first lien on the Net Revenues derived from the operation of the System, certain Public Service Tax revenues (unless and until released as permitted), the Reserve Account and the income on investment of any funds held in the Reserve Account (the "Pledged Funds"). The 1998 Bonds and interest thereon are not a general indebtedness or a pledge of the faith and credit of the City, the State of Florida or any political subdivision thereof within the meaning of any constitutional or statutory limitation or provision and the City shall never be required to exercise the ad valorem taxing power of the City for the payment of the principal of and interest on the 1998 Bonds. The 1998 Bonds are not a lien .upon the System or any other property of the City, except the Pledged Funds. The scheduled payment of principal of and interest on the 1998 Bonds when due will be guaranteed under an insurance policy to be issued concurrently with the delivery of the 1998 Bonds by Financial Security Assurance Inc. For a discussion of the terms and provisions of such policy, including the limitations thereof, see "Municipal Bond Insurance" herein. p IF~&. This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must read this entire Official Statement to obtain information essential to the making of an informed investment decision. MATURITIES, AMOUNTS, INTEREST RATES AND Y1ELDSlPRlCES $2,495,000 SERIAL BONDS ~ 1999 2000 2001 2002 2003 2004 Principal Am2Yn.t $ 25,000 60,000 140,000 175,000 185,000 200,000 Principal AmIDIDt $200,000 275,000 290,000 300,000 315,000 330,000 .Yicld 4.25% 4.30 4.35 4.40 4.50 4.55 Interest .BoWl 4.25% 4.30 4.35 4.40 4.50 4.50 Interest .BaY: 3.65% 3.85 4.00 4.05 4.10 4.20 Yield .Ymu: 3.65% 2005 3.85 2006 4.00 2007 4.05 2008 4.10 2009 4.20 2010 $4,840,000 TERM BONDS $1,485,0004.65% Term Bonds due October 1, 2014 - Price 98.879% $1,780,0004.75% Term Bonds due October 1, 2018 - Price 97.467% $1,575,0005.00% Term Bonds due October I, 2021 - Price 99.317% (plus accrued interest from August I, 1998) The 1998 Bonds are offered when, as and if issued and accepted by the Underwriter, subject to approval as to legality by Livermore & Klein, P.A., Jacksonville, Florida, Bond Counsel. Certain legal matters will be passed on for the City by Edward E. Hedstrom, Esq., Palatka, Florida, Attorney for the City and by Livermore & Klein, P.A., Jacksonville, Florida, Disclosure Counsel. The Underwriter is being represented by its counsel, Bryant, Miller & Olive, P A, Tampa, Florida. It is expected that the 1998 Bonds in definitive form will be available for delivery in New York, New York on or about August 25. 1998. ~ Hanifen, Imhoff Inc. Investment Bonkers August 11, 1998 I I I I I I I I I I I I I I I I I I I NEW ISSUE RATINGS: Fitch: "AAA" Standard & Poor's: "AAA" (Financial Guaranty Insured) (See "BOND RATINGS" herein) In the opinion of Cobb Cole & Bell, Daytona Beach, Florida, Bond Counsel, under existing statutes, regulations, published rulings and court decisions, the interest on the Bonds is (a) excluded from gross income of the owners of the Bonds for regular federal income tax purposes (except as described in "TAX EXEMPTION" herein) and (bj not an item of tax preference for purposes of the federal alternative minimum tax imposed on individual.~ and corporations. Bond Counsel is further of the opinion that the Bonds and the interest thereon are exempt from all present intangible taxes impo.~ed pursuant to Chapter 199, Florida Statutes. Furthermore, in the opinion of Bond Counsel, based on representations of the City, the Bonds are "qualified tax-exempt obligations" within the meaning of the Section 265(bJ(3) of the Internal Revenue Code of 1986, as amended. See "TAX EXEMPTION" herein for a discussion of Bond Counsel's opinion, including a description of the corporate alternative minimum tax. $1,605,000 CliTY OF ORANGE CITY, FLORIDA Utility System Improvement Revenue Bonds, Series 1996 Dated: June 1, 1996 Due: October 1, as shown below The City of Orange City, Florida (the "City") Utility System Improvement Revenue Bonds, Series 1996 (the "Bonds") are being issued as fully registered bonds in the denominations of $5,000 or any integral multiple thereof. Payment of interest on the Bonds is payable on October 1, 1996 and on each April 1 and October 1 thereafter until maturity by check or draft and will be mailed to the registered owner at his address as it appears on the books of the Registrar on the fifteenth day (whether or not a business day) of the month next preceding such interest payment date, or at the prior written request and expense of any requested owner, by bank wire transfer to a domestic account designated in such request for the account of such registered owner by First Union National Bank of Florida, Jacksonville, Florida as paying agent and registrar. The principal of, and premium, if any, on the Bonds are payable upon presentation and surrender when due at the designated corporate trust office of the paying agent. The Bonds are being issued to provide the funds necessary to acquire, install and construct certain capital improvements to the City's Utility System (the "Project") and to pay certain expenses relating to the issuance and sale of the Bonds. The Bonds are payable from and secured by a first lien on and pledge of the Net Revenues derived from the operation of the System, as defined herein, to the extent permitted by law and subject to certain limitations as set forth in the Ordinance, by a first lien on and pledge of the Impact Fees for such period of time as they shall be subject to the pledge and lien of the Ordinance and all amounts on deposit in the funds and accounts created by the Ordinance, other than the Rebate Fund (the "Ple,dged Funds"), all in the manner provided in the Ordinance and on a parity with the City's outstanding Utility System Refunding Revenue Bonds, Series 1995. The Bonds are subject to optional and mandatory redemption prior to maturity as described herein. Payment of the principal of and interest on the Bonds when due wiII be insured by a municipal bond insurance policy to be issued by Financial Guaranty Insurance Company simultaneously with the delivery of the Bonds. See "MUNICIPAL BOND INSURANCE" herein. ~ lFGIlC. Financial Gual'anty Insurance Company FGIC i.:II rep'lered .ervice mark u'l!d "1 "'inaudal GQuant,. IIIs,uralle., COlllllany. n pri'latr. r.orapany no. affiliated with any U.S. CClVtlirnmr.nl Dleney. MATURITIES, AMOUNTS, INTEREST RATES AND PRICES Principal Interest Principal Interest Maturity Amount Rate Price Maturity Amount Rate Price 1997 $10,000 4.00% 100% 2002 $10,000 5.05% 100% 1998 $10,000 4.30 100 2003 $10,000 5.15 100 1999 $10,000 4.70 100 2004 $10,000 5.25 100 2000 $10,000 4.85 100 2005 $10,000 5.35 100 2001 $10,000 4.95 100 $1,515,000- 5.875% Term Bonds due October 1, 2021 - Pri~e 96.485% (accrued interest, to be added) This cover page contains information for quick reference only. It is not a summary of the transaction. Investors must read this entire Omcial Statement to obtain information essential to the making of an informed decision. The Bond.~ are offered when, as and if issued, and accepted by the Underwriter, subject to the approval of legality by Cobb Cole & Bell, Daytona Beach, Florida, Bond Counsel. Certain legal matters will be passed on for the City by Jose B. Alvarez, Esquire. City Attorney. The Bonds are expected to be available for delivery in New York, New York on or about June 25. 1996. Dated: June 11, 1996 ~ Hanifen, Imhoff Inc. Investment Bankers I Hanifen, Imhoff Inc. I Florida Financing List 1996 TO PRESENT I Par Amount Issue Description Dated Date $15,300,000 St. Lucie County, Florida, Limited Advalorem Tax Bonds, 211/99 Series 1999 (Senior Manager) I TIC: 3.999 Underwriter's Discount: $3.78 (Ad valorem) I 23,215,000 City of Palm Bay, Florida, Utility System Capital Improvement 12/1198 Revenue Bonds, Series 1998 (Senior Manager) I TIC: 5.059 Underwriter's Discount: $6.00 (W/S Revenues, MLE Revenues, Connection Fees) I 40,010,000 Escambia County Utilities Authority, Florida, Utility System 10/1/98 Refunding Revenue Bonds, Series 1998D (Co-Manager) Delayed Delivery I TIC: 4.562 Underwriter's Discount: $5.95 (Utility Enterprise Revenues) I 15,280,000 Village of Royal Palm Beach, Florida, Utility System Revenue 10/1198 Bonds, Series 1998 (Co-Manager) TIC: NI A I Underwriter's Discount: $6.52 (Utility System Revenues) I 46,640,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 8/15198 Refunding Revenue Bonds, Series 1998 (Co-Manager) TIC: NI A I Underwriter's Discount: $6.30 (Airport General Revenues) I 7,335,000 City of Pal atka, Florida, Water and Sewer System Improvement 8/1198 and Refunding Revenue Bonds, Series 1998 (Senior Manager) TIC: 4.968 Underwriter's Discount: $11.00 I (W/S Revenues, Utility Tax Back-Up Pledge) 65,455,000 City of Port St. Lucie, Florida, Special Assessment Bonds, 7/15/98 I Series 1998A (USA 3&4 Water and Wastewater Extension Project) (Senior Manager) TIC: 5.165 Underwriter's Discount: $8.35 I (Special Assessments) 14,920,000 St. Lucie County, Florida, Special Assessment Refunding 711/98 I Bonds, Series 1998 (South Hutchinson Island Wastewater System) (Senior Manager) TIC: NI A Underwriter's Discount: $5.97 I (Special Assessments, WIS Revenues) I I I I I I I I I I I I I I I I I I I I Hanifen, Imhoff Inc. Florida Financing List 1996 TO PRESENT Par Amount Issue Description 45,015,000 City of Winter Haven, Florida Water and Sewer Refunding Revenue Bonds, Series 1998 (Senior Manager) TIC: N/A Underwriter's Discount: $8.00 (W/S Revenues) 7,500,000 City of Fort Pierce, Florida Capital Improvement Revenue Bonds, Series 1998 (Senior Manager) TIC: 4.986 Underwriter's Discount: $8.50 (Covenant to Budget and Appropriate - Non Advalorem Revenues) 10,010,000 City of Port St. Lucie, Florida Sales Tax Refunding & Improvement Revenue Bonds, Series 1998 (Senior Manager) TIC: 4.933 Underwriter's Discount:$7.75 (Sales Tax Revenues) 138,137,140 City of Port St. Lucie, Florida, Utility System Refunding and Improvement Revenue Bonds, Series 1997 A (Sole Manager) TIC: 5.421 Underwriter's Discount: $7.25 (W/S Revenues) 56,180,000 Kissimmee Utility Authority, Florida, Electric System Refunding Revenue Bonds, Series 1997 (Co-Manager) TIC: N/A Underwriter's Discount: $5.93 (Electric Revenues) 3,330,000 City of Port St. Lucie, Florida, Certificates of Participation, Series 1997 (Senior Manager) TIC: 5.891 Underwriter's Discount: $9.75 (CB&A Advalorem and Non-Advalorem Revenues) 35,000,000 City of Fort Lauderdale, Florida, General Obligation Bonds, Series 1997 (Park Improvement Projects) (Co-Manager) TIC: N/A Underwriter's Discount: N/A (Ad valorem) Dated Date 7/1/98 3/1/98 2/15/98 9/1197 8/1197 5/1197 5/1/97 I I I I I I I I I I I I I I I I I I I Hanifen, Imhoff Inc. Florida Financing List 1996 TO PRESENT Par Amount Issue Description 6,105,000 City of Port St. Lucie, Florida, Storm water Utility Revenue Refunding Bonds, Series 1996 (Sole Manager) TIC: 5.650 Underwriter's Discount: $8.95 (Storm water Utility Revenues) 17,955,000 City of Port St. Lucie, Florida, Special Assessment Bonds, Series 1997A (Assessment District No.1, Phase II, Water and Sewer Extension Project) (Senior Manager) TIC: 5.637 Underwriter's Discount: $12.50 (Special Assessments) 5,560,000 St. Lucie County, Florida, North Hutchinson Island, Water and Sewer System Revenue Refunding Bonds, Series 1997 (Co- Manager) TIC: N/ A Underwriter's Discount: $8.95 (Special Assessments, W/S Revenues) 26,235,000 City of New Smyrna Beach, Florida, Utilities Commission System, Refunding Revenue Certificates (Co-Manager) TIC: N/ A Underwriter's Discount: N/A (Electric System Revenues) 1,605,000 City of Orange City, Florida, Utility System Improvement Revenue Bonds, Series 1996 (Senior Manager) TIC: 6.309 Underwriter's Discount: $8.33 (W/S Revenues) 21,231,029.90 City of Port St. Lucie, Florida, Utility System Revenue Bonds, Series 1996 (Sole Manager) TIC: 6.232 Underwriter's Discount: $11.00 (W/S Revenues) 8,210,000 City of Port St. Lucie, Florida, Special Assessment Bonds, Series 1996A (Senior Manager) TIC: N/ A Underwriter's Discount: N/A (Special Assessment, Junior: W/S Revenues) 9,080,000 City of Port St. Lucie, Florida, Local Option Gas Tax Revenue Refunding & Improvement Bonds, Series 1996 (Sole Manager) TIC: 5.155 Underwriter's Discount: $8.75 (Local Option Gas Taxes) Dated Date 4/1197 2/15/97 2/1/97 7/1196 06/25/96 04/25/96 04/18/96 01115/96 I I I I I I I I I I I I I I I I I I SOURCES AND USES OF FUNDS City of Winter Springs, Florida Improvement Refunding Revenue Bonds, Series 1999 Refunding of Series ]989 (1999-2007) With New Money Rates as of 1/19/99 Dated Date Delivery Date 02/15/1999 02/26/1999 Sources: Bond Proceeds: Par Amount Accrued Interest 8,483,270.70 5,607.16 8,488,877 .86 Other Sources of Funds: 1989 DSRF 420,000.00 8,908,877 .86 Uses: Project Fund Deposits: Construction Fund 4,896,425.25 Refunding Escrow Deposits: PV cost of cashflows 2,941,776.52 Other Fund Deposits: Debt Service Reserve Fund Accrued Interest 848,327.07 5,607.16 853,934.23 Delivery Date Expenses: Cost of Issuance Underwriter's Discount Bond Insurance 85,000.00 67,866.17 63,725.05 216,591.22 Other Uses of Funds: Additional Proceeds 150.64 8,908,877 .86 I Prepared by DBC Finance (4.200 Winter Springs: 1989B-89REF,NEWMONEY) Page I I I I I I I I I I I I I I I I I I I SUMMARY OF BONDS REFUNDED City of Winter Springs, Florida Improvement Refunding Revenue Bonds, Series 1999 Refunding of Series 1989 (1999-2007) With New Money Rates as of 1/19/99 Maturity Date Interest Rate Bond Par Amount Call Date Call Price Improvement Refunding Revenue Bonds, Series 1989, 1989: SERIAL 1 % 1/ 1999 7.200% SERIAL ] % 1/2000 7.250% SERIAL 10/01/2001 7.400% SERIAL I % I /2002 7.400% SERIAL 10/01/2003 7.400% SERIAL ] % I /2004 7.400% SERIAL I % I /2005 7.400% SERIAL 10/0]/2006 7.450% SERIAL 10/01/2007 7.450% 255,000.00 275,000.00 295,000.00 315,000.00 335,000.00 365,000.00 390,000.00 420,000.00 225,000.00 04/01/1999 04/01/1999 04/0111999 04/011l999 04/01/1999 04/01/1999 04/01/1999 04/01/1999 04/01/1999 102.000 102.000 102.000 102.000 102.000 102.000 102.000 102.000 102.000 2,875,000.00 I Prepared by DBC Finance ( 4.200 Winter Springs: I 989B-89REF ,NEWMONEY) Page 2 I I I I I I I I I I I I I I I I I I Period Ending PRIOR BOND DEBT SERVICE City of Winter Springs, Florida Improvement Refunding Revenue Bonds, Series 1999 Refunding of Series. 1989 (1999-2007) With New Money Rates as of .1/19/99 Principal Coupon Interest Debt Service 255,000 7.200% 126,700.69 381,700.69 275,000 7.250% 193,790.00 468,790.00 295,000 7.400% 173,852.50 468,852.50 315,000 7.400% 152,022.50 467,022.50 335,000 7.400% 128,712.50 463,712.50 365,000 7.400% 103,922.50 468,922.50 390,000 7.400% 76,912.50 466,912.50 420,000 7.450% 48,052.50 468,052.50 225,000 7.450% 16,762.50 241,762.50 2,875,000 1,020.728.19 3,895,728.19 . 10/0111999 I % 1/2000 I % 1/200 1 1 % 1 /2002 10/0 1 /2003 10/01/2004 10/01/2005 I % I /2006 10/01/2007 Prepared by DBC Finance I ( 4.200 Winter Springs: I 989B-89REF,NEWMONEY) Page 3 I I BOND DEBT SERVICE City of Winter Springs, Florida I Improvement Refunding Revenue Bonds, Series 1999 Refunding of Series 1989 (1999-2007) With New Money I Rates as of J/ 19/99 Period Compounded I Ending Principal Coupon J nterest Interest Debt Service 10/0111999 260,000.00 3.000% 115,201.62 375,201.62 I 10/0112000 290,000.00 3.100% 175,707.00 465,707.00 1 % 1/200 I 315,000.00 3.450% 166,717.00 481,7J7.00 10/0 1/2002 335,000.00 3.650% 155,849.50 490,849.50 I 10/01/2003 360,000.00 3.750% 143,622.00 503,622.00 10/01/2004 390,000.00 3.850% 130,122.00 520,122.00 10/0J/2005 415,000.00 3.900% 115,107.00 530,107.00 I 10/0112006 450,000.00 4.000% 98,922.00 548,922.00 1 % 1/2007 255,000.00 4.1 00% 80,922.00 335,922.00 10/0112008 40,000.00 4.980% 70,467.00 110,467.00 I 10/01/2009 55,000.00 4.980% 68,475.00 123,475.00 10/0 1/20 1 0 70,000.00 4.980% 65,736.00 ] 35,736.00 10/0J/2011 85,000.00 4.980% 62,250.00 147,250.00 10/01/2012 105,000.00 4.980% 58,017.00 163,017.00 I 1 % J/20 13 125,000.00 4.980% 52,788.00 177,788.00 10/0 J/20 14 145,000.00 4.980% 46,563.00 191,563.00 10/0112015 165,000.00 4.980% 39,342.00 204,342.00 I 10/01/2016 185,000.00 4.980% 31,125.00 216,125.00 10/0J/2017 210,000.00 4.980% 21,912.00 23],912.00 10/01/2018 230,000.00 4.980% 11,454.00 241,454.00 I 10/0J/2019 466,111.80 5.300% 902,979.00 1,369,090.80 10/0 1/2020 441,898.20 5.300% 925,756.80 1,367,655.00 1 % 1/2021 419,702.40 5.300% 949,020.80 1,368,723.20 I 10/01/2022 398,515.50 5.300% 970,910.00 1,369,425.50 10/01/2023 378,337.50 5.300% 991,575.00 1,369,912.50 10/0 1/2024 358,159.50 5.300% 1,008,324.25 1,366,483.75 I 10/0 1/2025 339,999.30 5.300% 1,026,872.70 1,366,872.00 I % I /2026 322,848.00 5.300% 1,044,768.00 1,367,616.00 10/01/2027 306,705.60 5.300% ] ,062,297.60 1,369,003.20 I ] 0/01/2028 290,563.20 5.300% 1,076,040.00 1 ,366,603.20 10/0 1/2029 275,429.70 5.300% 1,089,570.30 1,365,000.00 I 8,483,270.70 1,710,299.12 11,048,114.45 21,241,684.27 I I Prepared by DBC Finance (4.200 Winter Springs: 1989B-89REF,NEWMONEY) Page 4 I I I I I I I I I I I I I I I I I I I AGGREGATE DEBT SERVICE City of Winter Springs, Florida Improvement Refunding Revenue Bonds, Series 1999 Refunding of Series 1989 (1999-2007) With New Money Rates as of 1/19/99 Period Ending Improvement Refunding Revenue Bonds, Series 1999 1993 Bonds Aggregate Debt Service 10/0 1/1999 10/01/2000 1.0/01/200 I 1 % 1/2002 1 % 1/2003 1 % 1/2004 10/0 1/2005 1 % I /2006 1 % 1 /2007 I % 1/2008 10/0] /2009 10/01/2010 10/01/2011 1.0/01/2012 10/01/2013 10/0 1/20 14 10/01/2015 10/01/2016 10/0 1/20 1 7 10/01/2018 10/01/20]9 10/01/2020 10/01/2021 1 % 1/2022 10/0 1/2023 1 % I /2024 10/0112025 I % I /2026 10/01/2027 1 % 1/2028 10/0 1/2029 375,20.1.62 465,707.00 481,717.00 490,849.50 503,622.00 520,122.00 530,107.00 548,922.00 335,922.00 110,467.00 123,475.00 135,736.00 147,250.00 163,017.00 1.77,788.00 191,563.00 204,342.00 216,125.00 231,912.00 241,454.00 1,369,090.80 1,367,655.00 1,368,723.20 1,369,425.50 1,369,912.50 1,366,483.75 1,366,872.00 1,367,616.00 1,369,003.20 1,366,603.20 1,365,000.00 493,907.50 491,837.50 489,767.50 492,697.50 495,147.50 492,342.50 494,537.50 491,387.50 718,237.50 958,012.50 959,400.00 959,2] 2.50 962,450.00 958,850.00 958,675.00 959,900.00 958,925.00 960,750.00 959,250.00 960,750.00 869,109.12 957,544.50 971,484.50 983,547.00 998,769.50 1,012,464.50 1,024,644.50 1,040,309.50 1,054,159.50 1,068,479.50 1,082,875.00 1,094,948.50 1,109,700.00 1,121.,867.00 1,136,463.00 1,151,463.00 1,163,267.00 1,176,875.00 1,191,162.00 1,202,204.00 1,369,090.80 1,367,655.00 1,368,723.20 1,369,425.50 1,369,912.50 1,366,483.75 1,366,872.00 1,367,616.00 1,369,003.20 1,366,603.20 1,365,000.00 21,241,684.27 15,216,037.50 36,457,721.77 .Prepared by DBC Finance I (4.200 Winter Springs: 1989B-89REF,NEWMONEY) Page 5 I I I I I I I I I I I I I I I I I I ESCROW COST City of Winter Springs, Florida Improvement Refunding Revenue Bonds, Series 1999 Refunding of Series 1989 (1999-2007) With New Money Rates as of 1/19/99 Type of Security Maturity Date Par Amount Rate Total Cost Cashflow 2,941,776.52 2,941,776.52 2,941,776.52 2,941,776.52 Purchase Date Cost of Securities Cash Deposit Total Escrow Cost Yield 02/26/1999 2,941,776.52 2,941,776.52 3.999997% 2,941,776.52 0.00 2,941,776.52 Prepared by DBC Finance I ( 4.200 Winter Springs: 1989B-89REF,NEWMONEY) Page 6 I I I I I I I I I I I I I I I I I I ESCROW CASH FLOW City of Winter Springs, Florida Improvement Refunding Revenue Bonds, Series 1999 Refunding of Series 1989 (1999-2007) With New Money Rates as of 1/]9/99 Date Present Value Other Net Escrow to 02/26/1999 Cash Flows Receipts @ 3.9999970% 2,953,125.69 2,953,125.69 2,941,776.52 2,953,125.69 2,953,125.69 2,941,776.52 10/01/1999 Escrow Cost Summary Purchase date Purchase cost of securities 02/26/1999 2,941,776.52 Target for yield calculation 2,94 J ,776.52 Prepared by DBC Finance I (4.200 Winter Springs: 1989B-89REF,NEWMONEY) Page 7 I I I I I I I I I I I I I I I I I I PROJECT FUND City of Winter Springs, Florida Improvement Refunding Revenue Bonds, Series 1999 Refunding of Series 1989 (1999-2007) With New Money Rates as of 1/19/99 Construction Fund (pROJ) Date Deposit Interest Scheduled @4.5% Principal Draws Balance 4,896,425.25 3,027.28 413,639.39 416,666.67 4,482,785.86 16,654.98 400,011.69 416,666.67 4,082,774.17 15,168.81 401,497.86 416,666.67 3,681,276.31 13,677.12 402,989.55 416,666.67 3,278,286.76 12,179.88 404,486.79 416,666.67 2,873,799.97 10,677 .09 405,989.58 416,666:67 2,467,810.39 9,168.70 407,497.97 416,666.67 2,060,312.42 7,654.72 409,011.95 416,666.67 1,651,300.47 6,135.11 410,531.56 416,666.67 1,240,768.91 4,609.85 412,056.82 416,666.67 828,712.09 3,078.93 413,587.74 416,666.67 415,124.35 1,542.32 415,124.35 416,666.67 103,574.79 4,896,425.25 5,000,000.04 02/26/1999 03/0111999 04/0 I /1999 05/011.1999 06/01/1999 07/01/1999 08/01/1999 09/0111999 10/01/1999 11/01/1999 12/01/1999 01/01/2000 02/0 I /2000 4,896,425.25 4,896,425.25 Prepared by DBC Finance I ( 4.200 Winter Springs: I 989B-89REF,NEWMONEY) Page 8 I I I I I I I I I I I I I I I I I I Period Ending NET DEBT SERVTCE City of Winter Springs, Florida Improvement Refunding Revenue Bonds, Series 1999 Refunding of Series 1989 (1999-2007) With New Money Rates as of 1/19/99 Total Debt Service General Debt Service Fund Reserve Fund. Net Debt Service I % 1/1999 10/0 1/2000 1 % 1/2001 10/0 1/2002 10/0 1/2003 10/0 1/2004 10/0 1/2005 ] % 1/2006 10/0 1/2007 10/01/2008 ]0/01/2009 10/01/2010 10/01/2011 10/01/2012 1 % 1/20 13 10/01/2014 1O/0I/2015 10/01/2016 10/01/2017 10/01/2018 10/01/2019 10/0112020 10/01/2021 10/01/2022 10/0 1/2023 ] % 1/2024 10/01/2025 I % I /2026 10/01/2027 ] % 1/2028 1 % 1/2029 375,201.62 465,707.00 481,717.00 490,849.50 503,622.00 520,122.00 530, I 07 .00 548,922.00 335,922.00 110,467.00 123,475.00 135,736.00 147,250.00 163,017.00 177,788.00 191,563.00 204,342.00 216,]25.00 231,912.00 241,454.00 1,369,090.80 1,367,655.00 1 ,368,723.20 1,369,425.50 1,369,912.50 1,366,483.75 1,366,872.00 1,367,616.00 1,369,003.20 1,366,603.20 1,365,000.00 5,607.16 25,331.99 42,416.36 42,416.36 42,416.36 42,416.36 42,416.36 42,416.36 42,416.36 42,416.36 42,416.36 42,416.36 42,416.36 42,416.36 42,416.36 42,416.36 42,416.36 42,416.36 42,416.36 42,4] 6.36 42,4] 6.36 42,416.36 42,416.36 42,416.36 42,416.36 42,416.36 42,416.36 42,416.36 42,416.36 42,416.36 42,4]6.36 890,743.43 344,262.4 7 423,290.64 439,300.64 448,433.14 461,205.64 477,705.64 487,690.64 506,505.64 293,505.64 68,050.64 81,058.64 93,319.64 104,833.64 120,600.64 135,371.64 149,146.64 161,925.64 173,708.64 189,495.64 199,037.64 1,326,674.44 1,325,238.64 1,326,306.84 1,327,009.14 1,327,496.14 1,324,067.39 1,324,455.64 1,325,199.64 1,326,586.84 1,324,] 86.84 474,256.57 21,241,684.27 5,607.16 2,]46,149.86 19,089,927.25 Prepared by DBC Finance I' (4.200 Winter Springs:1989B-89REF,NEWMONEY) Page 9 ------------------- 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 City of Winter Springs, Florida Refunding with New Money ... . ..... n_n un. ~f~~.~. ~;~g ~~j w.: .~;;::~: :.::.~~ h1~ ~~m ~~: ;~m ~:...."% ~m~ pjOJ c" en; c" ~ cOJ ,," "n; ,," ,(\ "OJ a," a,n; rt> ~ ~ "q) ,."CJ ,."CJ ,."CJ ,."CJ ,."CJ ,.,,() ,.,,() ,.,,() ,.,,() ,.,,() ,.,,() ,.,,() ,.,,() ,.,,() ,.,,() Prepared by Hanifen, Imhoff Inc., February 16, 1999 iii New Money II Series 1993 [] Refunded 1989 ------------------- CITY OF WINTER SPRINGS, FLORIDA Category Refunding of Series 1989 Bonds (1999-2007) Par Amount Gross Savin s A vera e Annual Savin s Net Present Value Savin s % of Refunded Bonds $3,115,000 $ 324,653 $ 37,824 $ 276,160 9.61% Prepared by: Hanifen, Imhoff Inc., January 6, 1999 Forward Refunding of Series 1992 Bonds (2001-2020) $14,870,000 $ 1,286,193 $ 64,310 $ 807,271 5.65% Advance Refunding of Series 1991 Bonds (2002-2021) Swap $6,045,000 $ 953,504 $ 47,675 $ 599,342 10.37% I I I I I I I I I I I I I I I I I I 15-Jan-99 9:36 am Prepared by Hanifen, Imhoff Inc. I SOURCES AND USES OF FUNDS City of Winter Springs, Florida Improvement Refunding Revenue Bonds, Series 1999 Refunding of Series 1989 (1999-2007) Rates as of 1/12/99 Dated Date Delivery Date 3/01/1999 3/01/1999 Sources: Bond Proceeds: Par Amount 3,115,000.00 3,115,000.00 Uses: Refunding Escrow Deposits: PV cost of cashflows 3,028,629.46 Delivery Date Expenses: Cost of Issuance Underwriter's Discount Bond Insurance 50,000.00 24,920.00 10,969.58 85,889.58 Other Uses of,Funds: Additional Proceeds 480.96 :. . 3,115,000.00 Page 1 I I I I I I I I I I I I I I I I I I 15-Jan-99 9:36 am Prepared by Hanifen, Imhoff Inc. I SUMMARY OF REFUNDING RESULTS City of Winter Springs, Florida Improvement Refunding Revenue Bonds, Series 1999 Refunding of Series 1989 (1999-2007) Rates as of 1/12/99 Dated Date Delivery Date Arbitrage yield Escrow yield 3/01/1999 3/01/1999 3.973104% 3.973103% Bond Par Amount True Interest Cost Net Interest Cost Average Coupon Average Life 3,115,000.00 4.176772% 4.074533% 3.895279% 4.463 Par amount of refunded bonds Average coupon of refunded bonds Average life of refunded bonds 2,875,000.00 7.411706% 4.776 PV of prior debt to 3/01/1999 @ 3.973104% Net PV Savings . Percentage savings of refunded bonds Percentage savings of refunding bonds 3,379,709.46 276,160.00 -9.605565% 8.865490% Page 2 I I I I I I I I I I I I I I I I I I I SUMMARY OF BONDS REFUNDED City of Winter Springs, Florida Improvement Refunding Revenue Bonds, Series 1999 Refunding of Series 1989 (1999-2007) . Rates as of 1/12/99 Bond Maturity Date Interest Rate Par Amount Call Date Call Price SERIAL Improvement Refunding Revenue Bonds, Series 1989: 10/01/1999 10/01/2000 10/01/2001 10/01/2002 10/01/~003 10/01/2004 10/01/2005 10/01/2006 10/01/2007 7.200% 7.250% 7.400% 7.400% 7.400% 7.400% 7.400% 7.450% 7.450% 255,000.00 3/31/1999 275,000.00 3/31/1999 295,000.00 3/31/1999 315,000.00 3/31/1999 335,000.00 3/31/1999 365,000.00 3/31/1999 390,000.00 3/31/1999 420,000.00 3/31/1999 225,000.00 3/31/1999 2,875,000.00 102.000 102.000 102.000 102.000 102.000 102.000 102.000 102.000 102.000 2,875,000.00 15-Jan-99 9:36 am Prepared by Hanifen, Imhoff Inc. Page 3 I I I I I I I I~ I I I I I I I I I I I SAVINGS City of Winter Springs, Florida Improvement Refunding Revenue Bonds, Series 1999 Refunding of Series 1989 (1999-2007) Rates as of 1/12/99 Present Value Prior Refunding to 3/01/1999 Date Debt Service. Debt Service Savings @ 3.9731041% Oct 1, 1999 467,150.00 446,885.00 20,265.00 21,864.66 Oct 1, 2000 468,790.00 428,260.00 40,530.00 38,927.29 Oct 1, 2001 468,852.50 433,185.00 35,667.50 32,944.47 Oct 1, 2002 467,022.50 431,285.00 35,737.50 31,648.68 Oct 1, 2003 463,712.50 423,510.00 40,202.50 34,068.67 Oct 1, 2004 468,922.50 430,020;00 38,902.50 31,620.64 Oct 1, 2005 466,912.50 430,395.00 36,517.50 28,465.04 Oct 1, 2006 468,052.50 429,795.00 38,257.50 28,560.36 Oct 1, 2007 241,762.50 203,190.00 38,572.50 27,579.23 3,981,177.50 3,656,525.00 324,652.50 275,679.04 Savings Summary PV of savings from cash flow Plus: Refunding funds on hand 275,679.04 480.96 Net PV Savings 276,160.00 15-Jan-99 9:36 am Prepared by Hanifen, Imhoff Inc. Page 4 I I I I I I I I. I I I I I I I I I I 15-J8n-99 9,36 am Prepared by Hanifen. Imhoff Inc. I PRIOR BOND DEBT SERVICE City of Winter Springs, Florida Improvement Refunding Revenue Bonds, Series 1999 Refunding of Series 1989 (1999-2007) Rates as of 1/12/99 Dated Date 3/01/1999 Delivery Date 3/01/1999 Period Ending Principal Coupon Interest Debt Service Oct 1,1999 255,000.00 7.200% 212,150.00 467,150.00 Oct 1, 2000 275,000.00 7.250% 193,790.00 468,790.00 Oct 1, 2001 295,000.00 7.400% 173,852.50 468,852.50 Oct 1, 2002 315,000.00 7.400% 152,022.50 467,022.50 Oct 1,2003 335,000.00 7.400% 128,712.50 463,712.50 Oct 1, 2004 365,000.00 7.400% 103,922.50 468,922.50 Oct 1, 2005 390,000.00 7.400% 76,912.50 466,912.50 Oct 1, 2006 420,000.00 7.450% 48,052.50 468,052.50 Oct 1, 2007 225,000.00 7.450% 16,762.50 241,762.50 2,875,000.00 1,106,177.50 3,981,177.50 Page 5 I I I I I I I I I I I I I I I I I I I ESCROW REQUIREMENTS City of Winter Springs, Florida Improvement Refunding Revenue Bonds, Series 1999 Refunding of Series 1989 (1999-2007) Rates as of 1/12/99 Period Ending. Principal Interest Redeemed Redemption Premium Total . Mar 31, 1999 106,075.00 2,875,000.00 57,500.00 3,038,575.00 106,075.00 2,875,000.00 57,500.00 3,038,575.00 15-Jan-99 9:36 am Prepared by Hanifen, Imhoff Inc. Page 6 I I I I I I I I I I I I' I I I I I 11l;-jan-99 <j,36 am Prepared by Hanifen, Imhoff Inc. I BOND DEBT SERVICE City of Winter Springs, Florida Improvement Refunding Revenue Bonds, Series 1999 Refunding of Series 1989 (1999-2007) Rates as of 1/12/99 Dated Date 3/01/1999 Delivery Date 3/01/1999 Period Annual Ending Principal Coupon Interest Debt Service Debt Service . Mar 1, 1999 Oct 1,1999 380,000.00 3.000% 66,885.00 446,885.00 446,885.00 Apr 1, 2000 51,630.00 51,630.00 Oct 1, 2000 325,000.00 3.100% 51,630.00 376,630.00 428,260.00 Apr 1, 2001 46,592.50 46,592.50 Oct 1, 2001 340,000.00 3.500% 46,592.50 386,592.50 433,185.00 Apr 1, 2002 40,642.50 40,642.50 Oct 1,2002 350,000.00 3.650% 40,642.50 390,642.50 431,285.00 Apr 1, 2003 34,255.00 34,255.00 Oct 1, 2003 355,000.00 3.800% 34,255.00 389,255.00 423,510.00 Apr 1, 2004 27,510.00 27,510.00 Oct 1, 2004 375,000.00 3.900% 27,510.00 402,510.00 430,020.00 Apr 1, 2005 20,197.50 20,197.50 Oct 1, 2005 390,000.00 4.000% 20,197.50 410,197.50 430,395.00 Apr 1, 2006 12,397.50 12,397.50 Oct 1,2006 405,000.00 4.100% 12,397.50 417,397.50 429,795.00 Apr 1, 2007 4,095.00 4,095.00 Oct 1,2007 195,000.00 4.200% 4,095.00 199,095.00 203,190.00 3,115,000.00 541,525.00 3,656,525.00 3,656,525.00 Page 7 I I I I I I I I I I I I I I I I I I I AGGREGATE DEBT SERVICE . City of Winter Springs, Florida Improvement Refunding Revenue Bonds, Series 1999 Refunding of Series 1989 (1999-2007) Rates as of 1/12/99 Improvement Refunding Period Revenue Bonds, Aggregate Ending Series 1999 Debt Service Oct 1, 1999 446,885.00 446,885.00 Oct 1, 2000 428,260.00 428,260.00 Oct 1,2001 433,185.00 . 433,185.00 Oct 1, 2002 431,285.00 431,285.00 Oct 1, 2003 423,510.00 423,510.00 Oct 1, 2004 430,020.00 430,020.00 Oct 1, 2005 430,395.00 430,395.00 Oct 1, 2006 429,795.00 429,795.00 Oct 1, 2007 203,190.00 203,190.00 3,656,525.00 3,656,525.00 15-Jan-99 9:36 am Prepared by Hanifen, Imhoff Inc. Page 8 I I I I I I I I I I I I I I I I I I I ESCROW CASH FLOW City of Winter Springs, Florida Improvement Refunding Revenue Bonds, Series 1999 Refunding of Series 1989 (1999-2007) Rates as of 1/12/99 Date Present Value Other Net Escrow to 3/01/1999 Cash Flows Receipts @ 3.9731030% 3,038,575.00 3,038,575.00 3,028,629.46 3,038,575.00 3,038,575.00 3,028,629.46 Oct 1,1999 Escrow Cost Summary Purchase date Purchase cost of securities 3/01/1999 3,028,629.46 Target for yield calculation 3,028,629.46 15-Jan-99 9:36 am Prepared by Hanifen, Imhoff Inc. Page 9 I I I I I I I I I I I I I I I I I I I SOURCES AND USES OF FUNDS City of Winter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 1999 Forward Refunding of Series 1992 (2001-2020) Rates as of 1/12/99 Dated Date Delivery Date 4/01/2000 .4/01/2000 Sources: Bond Proceeds: Par Amount 14,870,000.00 14,870,000.00 Uses: Refunding Escrow Deposits: PV cost of cashflows 14,575,800.00 Delivery Date Expenses: Cost of Issuance Underwriter's Discount Bond Insurance 100,000.00 118,960.00 71,904.80 290,864.80 Other Uses of Funds: Additional Proceeds 3,335.20 14,870,000.00 15-Jan-99 9:39 am Prepared by Hanifen, Imhoff Inc. Page 1 I I I I I I I I I I I I I I I I I I I SUMMARY OF REFUNDING RESULTS City of Winter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 1999 Forward Refunding of Series 1992 (2001-2020) Rates as of 1/12/99 Dated Date Delivery Date Arbitrage yield Escrow yield 4/01/2000. 4/01/2000 5.117074% Bond Par Amount True Interest Cost Net Interest Cost Average Coupon Average Life 14,870,000.00 5.212251 % 5.163424% 5.096783% 12.005 Par amount of refunded bonds Average coupon of refunded bonds Average life of refunded bonds 14,290,000.00 6.191287% 12.393 PV of prior debt to 4/01/2000 @ 5.117074% Net PV Savings Percentage savings of refunded bonds Percentage savings of refunding bonds 15,602,031.33 807,271.33 5.649205% 5.428859% 15-Jan-99 9:39 am Prepared by Hanifen, Imhoff Inc. Page 2 I I I I I I I I I I I I I I I I I I 15-Jan-99 9:39 am Prepared by Hanifen, Imhoff Inc. I SUMMARY OF BONDS REFUNDED City of Winter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 1999 Forward Refunding of Series 1992 (2001-2020) Rates as of 1/12/99 Maturity Interest Par Call Call Bond Date Rate Amount Date Price Water and Sewer Ref. Revenue Bonds, Series 1992: SERIAL 4/01/2001 5.300% 395,000.00 4/01/2000 102.000 4/01/2002 5.400% 420,000.00 4/01/2000 102.000 4/01/2003 5.400% 440,000.00 4/01/2000 102.000 4/01/2004 5.500% 465,000.00 4/01/2000 102.000 4/01/2005 5.650% 490,000.00 4/01/2000 102.000 4/01/2006 5.800% 520,000.00 4/01/2000 102.000 4/01/2007 5.900% 545,000.00 4/01/2000 102.000 4/01/2008 6.000% 580,000.00 4/01/2000 102.000 4/01/2009 6.200% 615,000.00 4/01/2000 102.000 4/01/2010 6.200% 650,000.00 4/01/2000 102.000 4/01/2011 6.200% 690,000.00 4/01/2000 102.000 4/01/2012 6.200% 735,000.00 4/01/2000 102.000 4/01/2013 6.250% 780,000.00 4/01/2000 102.000 4/01/2014 6.250% 825,000.00 4/01/2000 102.000 4/01/2015 6.250% 875,000.00 4/01/2000 102.000 4/01/2016 6.250% 930,000.00 4/01/2000 102.000 4/01/2017 6.250% 990,000.00 4/01/2000 102.000 4/01/2018 6.250% 1,050,000.00 4/01/2000 102.000 4/01/2019 6.250% 1,115,000.00 4/01/2000 102.000 4/01/2020 6.250% 1,180,000.00 4/01/2000 102.000 14,290,000.00 14,290,000.00 Page 3 I I I I I I I I I I I I I I I I I I I SAVINGS City of Winter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 1999 Forward Refunding of Series 1992 (2001-2020) Rates as of 1/12/99 Present Value Prior Refunding to 4/01/2000 Date Debt Service Debt Service Savings @ 5.1170741 % Apr 1, 2001 1,263,592.50 1,199,240.00 64,352.50 62,937.40 Apr 1, 2002 1,267,657.50 1,206,190.00 61,467.50 57,195.30 Apr 1, 2003 1,264,977.50 1,201,190.00 63,787.50 56,341.41 Apr 1, 2004 1,266,217.50 1,200,075.00 66,142.50 55,461.77 Apr 1, 2005 1,265,642.50 1,202,605.00 63,037.50 50,286.40 Apr 1,2006 1,267,957.50 1,203,805.00 64,152.50 48,595.40 Apr 1, 2007 1,262,797.50 1,198,357.50 64,440.00 46,360.54 Apr 1, 2008 1,265,642.50 1,201,435.00 64,207.50 43,876.40 Apr 1,2009 1,265,842.50 1,202,860.00 62,982.50 40,886.59 Apr 1, 2010 1,262,712.50 1,197,270.00 65,442.50 40,298.06 Apr 1, 2011 1,262,412.50 1,199,840.00 62,572.50 36,608.48 Apr 1, 2012 1,264,632.50 1,200,040.00 64,592.50 35,850.65 Apr 1, 2013 1,264,062.50 1,197,800.00 66,262.50 34,894.83 Apr 1, 2014 1,260,312.50 1,198,050.00 62,262.50 31,147.01 Apr 1, 2015 1,258,750.00 1,195,465.00 63,285.00 30,037.71 Apr 1, 2016 1,259,062.50 1,193,652.50 65,410.00 29,459.62 Apr 1, 2017 1,260,937.50 1,194,432.50 66,505.00 28,423.68 Apr 1, 2018 1,259,062.50 1,192,537.50 66,525.00 26,979.83 Apr 1,2019 1,258,437.50 1,192,967.50 65,470.00 25,192.39 Apr 1, 2020 1,253,750.00 1,190,455.00 63,295.00 23,102.67 25,254,460.00 23,968,267.50 1,286,192.50 803,936.13 Savings Summary PV of savings from cash flow Plus: Refunding funds on hand 803,936.13 3,335.20 Net PV Savings 807,271.33 15-Jan-99 9:39 am Prepar~d by Hanifen, Imhoff Inc. Page 4 I I I I I. I I I I I I I I I I I I I 15-Jan-99 I Period Ending PRIOR BOND DEBT SERVICE City of Winter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 1999 Forward Refunding of Series 1992 (2001-2020) Rates as of 1/12/99 Dated Date Delivery Date 4/01/2000 4/01/2000 Principal Coupon Interest Debt Service 5.300% 868,592.50 1,263,592.50 5.400% 847,657.50 1,267,657.50 5.400% 824,977.50 1,264,977.50 5.500% 801,217.50 1,266,217.50 5.650% 775,642.50 1,265,642.50 5.800% 747,957.50 1,267,957.50 5.900% 717,797.50 1,262,797.50 6.000% 685,642.50 1,265,642.50 6.200% 650,842.50 1,265,842.50 6.200% 612,712.50 1,262,712.50 6.200% 572,412.50 1,262,412.50 6.200% 529,632.50 1,264,632.50 6.250% 484,062.50 1,264,062.50 6.250% 435,312.50 1,260,312.50 6.250% 383,750.00 1,258,750.00 6.250% 329,062.50 1,259,062.50 6.250% 270,937.50 1,260,937.50 6.250% 209,062.50 1,259,062.50 6.250% 143,437.50 1,258,437.50 6.250% 73,750.00 1,253,750.00 10,964,460.00 25,254,460.00 Apr 1, 2001 Apr 1, 2002 Apr 1,2003 Apr 1, 2004 Apr 1,2005 Apr 1, 2006 Apr 1, 2007 Apr 1, 2008 Apr 1, 2009 Apr 1, 2010 Apr 1, 2011 Apr 1, 2012 Apr 1, 2013 Apr 1,2014 Apr 1,2015 Apr 1, 2016 Apr 1,2017 Apr 1, 2018 Apr 1,2019 Apr 1, 2020 395,000.00 420,000.00 440,000.00 465,000.00 490,000.00 520,000.00 545,000.00 580,000.00 615,000.00 650,000.00 690,000.00 735,000.00 780,000.00 825,000.00 875,000.00 930,000.00 990,000.00 1,050,000.00 1,115,000.00 1,180,000.00 14,290,000.00 9:39 am Prepared by Hanifen, Imhoff Inc. Page 5 I I I I I I I I I I I I I I I I I ESCROW REQUIREMENTS City of Winter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 1999 Forward Refunding of Series 1992 (2001-2020) Rates as of 1/12/99 Period Ending Principal Redeemed Redemption Premium Total Apr 1, 2000 14,290,000.00 285,800.00 14,575,800.00 14,290,000.00 285,800.00 14,575,800.00 I 15-Jan-99 9:39 am Prepared by Hanifen, Imhoff Inc. Page 6 I I I BOND DEBT SERVICE City of Winter Springs, Florida I Water and Sewer Ref. Revenue Bonds, Series 1999 Forward Refunding of Series 1992 (2001-2020) Rates as of 1/12/99 I Dated Date 4/01/2000 Delivery Date 4/01/2000 I Period Annual Ending Principal Coupon Interest Debt Service Debt Service I Apr 1, 2000 Oct 1, 2000 362,120.00 362,120.00 Apr 1, 2001 475,000.00 3.800% 362,120.00 837,120.00 1,199,240.00 I Oct 1, 2001 353,095.00 353,095.00 Apr 1, 2002 500,000.00 4.000% 353,095.00 853,095.00 1,206,190.00 Oct 1, 2002 343,095.00 343,095.00 I Apr 1, 2003 515,000.00 4.100% 343,095.00 858,095.00 1,201,190.00 Oct 1, 2003 332,537.50 332,537.50 Apr 1, 2004 535,000.00 4.200% 332,537.50 867,537.50 1,200,075.00 Oct 1, 2004 321,302.50 321,302.50 I Apr 1, 2005 560,000.00 4.250% 321,302.50 881,302.50 1,202,605.00 Oct 1, 2005 309,402.50 309,402.50 Apr 1, 2006 585,000.00 4.350% 309,402.50 894,402.50 1,203,805.00 I Oct 1, 2006 296,678.75 296,678.75 Apr 1, 2007 605,000.00 4.450% 296,678.75 901,678.75 1,198,357.50 Oct 1,2007 283,217.50 283,217.50 I Apr 1,2008 635,000.00 4.500% 283,217.50 918,217.50 1,201,435.00 Oct 1, 2008 268,930.00 268,930.00 Apr 1, 2009 665,000.00 4.600% 268,930.00 933;930.00 1,202,860.00 Oct 1, 2009 253,635.00 253,635.00 I Apr 1, 2010 690,000.00 4.700% 253,635.00 943,635.00 1,197,270.00 Oct 1, 2010 237,420.00 237,420.00 Apr 1, 2011 725,000.00 4.800% 237,420.00 962,420.00 1,199,840.00 I Oct 1, 2011 220,020.00 220,020.00 Apr 1, 2012 760,000.00 4.900% 220,020.00 980,020.00 "1,200,040.00 Oct 1,2012 201,400.00 201,400.00 I Apr 1,2013 795,000.00 5.000% 201,400.00 996,400.00 1,197,800.00 Oct 1, 2013 181,525.00 181,525.00 Apr 1, 2014 835,000.00 5.100% 181,525.00 1,016,525.00 1,198,050.00 Oct 1,2014 160,232.50 160,232.50 I Apr 1,2015 875,000.00 5.350% 160,232.50 1,035,232.50 1,195,465.00 Oct 1, 2015 136,826.25 136,826.25 Apr 1, 2016 920,000.00 5.350% 136,826.25 1,056,826.25 1,193,652.50 I Oct 1, 2016 112,216.25 112,216.25 Apr 1, 2017 970,000.00 5.350% 112,216.25 1,082,216.25 1,194,432.50 Oct 1, 2017 86,268.75 86,268.75 I Apr 1, 2018 1,020,000.00 5.350% 86,268.75 1,106,268.75 1,192,537.50 Oct 1, 2018 58,983.75 58,983.75 Apr 1,2019 1,075,000.00 5.350% 58,983.75 1,133,983.75 1,192,%7.50 I 15-Jan-99 9:39 am Prepared by Hanifen, Imhoff Inc. Page 7 I I .1 I I I I I I I I I I I I I I I I 15-Jan-99 I BOND DEBT SERVICE Gty of Winter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 1999 Forward Refunding of Series 1992 (2001-2020) Rates as of 1/12/99 Period Annual Ending Principal Coupon Interest Debt Service Debt Service Oct 1, 2019 30,227.50 30,227.50 Apr 1, 2020 1,130,000.00 5.350% 30,227.50 1,160,227.50 1,190,455.00 14,870,000.00 9,098,267.50 23,968,267.50 23,968,267.50 9:39 am Prepared by Hanifen, Imhoff Inc. Page 8 I I I I I I I I I I I I I I I I I I 15-Jan-99 I AGGREGATE DEBT SERVICE City of Winter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 1999 Forward Refunding of Series 1992 (2001-2020) Rates as of 1/12/99 Water and Sewer Ref. Period Revenue Bonds, Aggregate Ending Series 1999 Debt Service Apr 1,2001 1,199,240.00 1,199,240.00 Apr 1,2002 1,206,190.00 1,206,190.00 Apr 1, 2003 1,201,190.00 1,201,190.00 Apr 1, 2004 1,200,075.00 1,200,075.00 Apr 1, 2005 1,202,605.00 1,202,605.00 Apr 1, 2006 1,203,805.00 1,203,805.00 Apr 1, 2007 1,198,357.50 1,198,357.50 Apr 1, 2008 1,201,435.00 1,201,435.00 Apr 1, 2009 1,202,860.00 1,202,860.00 Apr 1, 2010 1,197,270.00 1,197,270.00 Apr 1, 2011 1,199,840.00 1,199,840.00 Apr 1, 2012 1,200,040.00 1,200,040.00 Apr 1,2013 1,197,800.00 1,197,800.00 Apr 1, 2014 1,198,050.00 1,198,050.00 Apr 1, 2015 1,195,465.00 1,195,465.00 Apr 1, 2016 1,193,652.50 1,193,652.50 Apr 1,2017 1,194,432.50 1,194,432.50 Apr 1, 2018 1,192,537.50 1,192,537.50 Apr 1, 2019 1,192,967.50 1,192,967.50 Apr 1, 2020 1,190,455.00 1,190,455.00 23,968,267.50 23,968,267.50 9:39 am Prepared by Hanifen, Imhoff Inc. Page 9 I I I I I I I I I I I I I I I I I I I ESCROW CASH FLOW City of Winter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 1999 Forward Refunding of Series 1992 (2001-2020) Rates as of 1/12/99 Date Other Cash Flows Net Escrow Receipts Present Value to 4/01/2000 @ - Apr 1,2001 14,575,800.00 14,575,800.00 14,575,800.00 14,575,800.00 14,575,800.00 14,575,800.00 Escrow Cost Summary Purchase date Purchase cost of securities 4/01/2000 14,575,800.00 Target for yield calculation 14,575,800.00 15-Jan-99 9:39 am Prepared by Hanifen, Imhoff Inc. Page 10 I I I I I I I I I I I I I I I I I I I SOURCES AND USES OF FUNDS City of Winter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 1999 Advance Refunding of Series 1991 (2002-2021) Swap Rates as ofl/6/99 Dated Date Delivery Date 10/01/2001 10/01/2001 Sources: Bond Proceeds: Par Amount 6,045,000.00 6,045,000.00 Uses: Refunding Escrow Deposits: PV cost of cashflows 5,895,600.00 Delivery Date Expenses: Cost of Issuance Underwriter's Discount Bond Insurance 70,000.00 48,360.00 28,383.59 146,743.59 Other Uses of Funds: Additional Proceeds 2,656.41 6,045,000.00 15-Jan-99 9:38 am Prepared by Hanifen, Imhoff Inc. Page 1 I I I I I I I I I I I I I I I I I I I SUMMARY OF REFUNDING RESULTS City of Winter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 1999 Advance Refunding of Series 1991 (2002-2021) Swap Rates as of 1/6/99 Dated Date Delivery Date Arbitrage yield Escrow yield 10/01/2001 10/01/2001 4.754352% Bond Par Amount True Interest Cost Net Interest Cost Average Coupon Average Life 6,045,000.00 4.847829% 4.766534% 4.700000% 12.024 Par amount of refunded bonds Average coupon of refunded bonds Average life of refunded bonds 5,780,000.00 6.672760% 12.582 PV of prior debt to 10/01/2001 @ 4.754352% Net PV Savings Percentage savings of refunded bonds Percentage savings of refunding bonds 6,769,976.09 599,342.33 10.369244 % 9.914679% -- 15-Jan-99 9:38 am Prepared by Hanifen, Imhoff Inc. Page 2 I I I I I I I I I I I I I I I I I I I SUMMARY OF BONDS REFUNDED City of Winter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 1999 Advance Refunding of Series 1991 (2002-2021) Svvap . Rates as of 1/6/99 Bond Maturity Date Call Price Interest Rate SERIAL Water and Sewer Ref. Revenue Bonds, Series 1999: 10/01/2002 10/01/2003 10/01/2004 10/01/2005 10/01/2006 10/01/2007 10/01/2008 10/01/2009 10/01/2010 10/01/2011 10/01/2012 10/01/2013 10/01/2014 10/01/2015 10/01/2016 10/01/2017 10/01/2018 10/01/2019 10/01/2020 10/01/2021 6.300% 6.400% 6.500% 6.625% . 6.500% 6.500% 6.500% 6.500% 6.500% 6.500% 6.500% 6.500% 6.500% 6.750% 6.750% 6.750% 6.750% 6.750% 6.750% 6.750% Par Amount Call Date 102.000 102.000 102.000 102.000 102.000 102.000 102.000 102.000 102.000 102.000 102.000 102.000 102.000 102.000 102.000 102.000 102.000 102.000 102.000 102.000 150,000.00 10/01/2001 155,000.00 10/01/2001 170,000.00 10/01/2001 180,000.00 10/01/2001 190,000.00 10/01/2001 200,000.00 10/01/2001 220,000.00 10/01/2001 225,000.00 10/01/2001 245,000.00 10/01/2001 255,000.00 10/01/2001 280,000.00 10/01/2001 295,000.00 10/01/2001 310,000.00 10/01/2001 340,000.00 10/01/2001 360,000.00 10/01/2001 385,000.00 10/01/2001 410,000.00 10/01/2001 440,000.00 10/01/2001 470,000.00 10/01/2001 500,000.00 10/01/2001 5,780,000.00 5,780,000.00 15-Jan-99 9:38 am Prepared by Hanifen, Imhoff Inc. Page 3 I I I I I I I I I I I I I I I I I I I SAVINGS City of Winter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 1999 Advance Refunding of Series 1991 (2002-2021) Swap Rates as of 1/6/99 Present Value Prior Refunding Refundirig Refunding to 10/01/2001 Date Debt Service Debt Service Adjustments" Net Cash flow Savings @ 4.7543515% Oct 1, 2002 532,732.50 474,115.00 18,136.00 492,251.00 40,481.50 39,536.07 Oct 1, 2003 528,282.50 470,185.00 17,566.00 487,751.00 40,531.50 37,767.40 Oct 1, 2004 533,362.50 476,020.00 16,980.00 493,000.00 40,362.50 35,885.34 Oct 1, 2005 532,312.50 476,150.00 16,350.00 492,500.00 39,812.50 33,777.01 Oct 1,2006 530,387.50 470,810.00 15,690.00 486,500.00 43,887.50 35,439.72 Oct 1, 2007 528,037.50 470,235.00 15,016.00 485,251.00 42,786.50 32,972.63 Oct 1, 2008 535,037.50 474,190.00 14,310.00 488,500.00 46,537.50 34,148.11 Oct 1, 2009 525,737.50 467,440.00 13,560.00 481,000.00 44,737.50 31,330.00 Oct 1, 2010 531,112.50 470,455.00 12,796.00 483,251.00 47,861.50 31,924.03 Oct 1, 2011 525,187.50 467,765.00 11,986.00 479,751.00 45,436.50 28,924.86 Oct 1, 2012 533,612.50 474,605.00 11,146.00 485,751.00 47,861.50 29,025.20 Oct 1, 2013 530,412.50 470,505.00 10,246.00 480,751.00 49,661.50 28,695.51 Oct 1,2014 526,237.50 465,935.00 9,316.00 475,251.00 50,986.50 28,074.00 Oct 1, 2015 536,087.50 475,895.00 8,356.00 484,251.00 51,836.50 27,200.13 Oct 1, 2016 533,137.50 474,680.00 7,320.00 482,000.00 51,137.50 25,572.71 Oct 1, 2017 533,837.50 477,760.00 6,240.00 484,000.00 49,837.50 23,750.63 Oct 1, 2018 532,850.00 474,900.00 5,100.00 480,000.00 52,850.00 23,978.35 Oct 1,2019 535,175.00 476,335.00 3,916.00 480,251.00 54,924.00 23,727.52 Oct 1, 2020 535,475.00 476,830.00 2,670.00 479,500.00 55,975.00 23,025.26 Oct 1, 2021 533,750.00 476,385.00 1,366.00 477,751.00 55,999.00 21,931.44 10,632,765.00 9,461,195.00 218,066.00 9,679,261.00 953,504.00 596,685.92 Savings Summary PV of savings from cash flow Plus: Refunding funds on hand 596,685.92 2,656.41 Net PV Savings 599,342.33 15-Jan-99 9:38 am Prepared by Hanifen, Imhoff Inc. Page 4 I I I I I I I I I I I I I I I I I I I PRIOR BOND DEBT SERVICE City of Winter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 1999 Advance Refunding of Series 1991 (2002-2021) Swap Rates as of 1/6/99 Dated Date 10/01/2001 Delivery Date 10/01/2001 Period Ending Principal Coupon Interest Debt Service Oct 1, 2002 150,000.00 6.300% 382,732.50 532,732.50 Oct 1, 2003 155,000.00 6.400% 373,282.50 528,282.50 Oct 1, 2004 170,000.00 6.500% 363,362.50 533,362.50 Oct 1, 2005 180,000.00 6.625% 352,312.50 532,312.50 Oct 1, 2006 190,000.00 6.500% 340,387.50 530,387.50 Oct 1, 2007 200,000.00 6.500% 328,037.50 528,037.50 Oct 1, 2008 220,000.00 6.500% 315,037.50 535,037.50 Oct 1, 2009 225,000.00 6.500% 300,737.50 525,737.50 Oct 1, 2010 245,000.00 6.500% 286,112.50 531,112.50 Oct 1, 2011 255,000.00 6.500% 270,187.50 525,187.50 Oct 1, 2012 280,000.00 6.500% 253,612.50 533,612.50 Oct 1, 2013 295,000.00 6.500% 235,412.50 530,412.50 Oct 1,2014 310,000.00 6.500% 216,237.50 526,237.50 Oct 1, 2015 340,000.00 6.750% 196,087.50 536,087.50 Oct 1, 2016 360,000.00 6.750% 173,137.50 533,137.50 Oct 1, 2017 385,000.00 6.750% 148,837.50 533,837.50 Oct 1, 2018 410,000.00 6.750% 122,850.00 532,850.00 Oct 1, 2019 440,000.00 6.750% 95,175.00 535,175.00 Oct 1, 2020 470,000.00 6.750% 65,475.00 535,475.00 Oct 1, 2021 500,000.00 6.750% 33,750.00 533,750.00 5,780,000.00 4,852,765.00 10,632,765.00 15-Jan-99 9:38 am Prepared by Hanifen, Imhoff Inc. Page 5 I I I I I I I I I I I I I I I I I I I ESCROW REQUIREMENTS City of Winter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 1999 Advance Refunding of Series 1991 (2002-2021) Swap Rates as of 1/6/99 Period Ending Principal Redeemed Redemption Premium Total Oct 1,2001 5,780,000.00 115,600.00 5,895,600.00 5,780,000.00 115,600.00 5,895;600.00 15-Jan-99 9:38 am Prepared by Hanifen, Imhoff loc. Page 6 I I BOND DEBT SERVICE City of Winter Springs, Florida I Water and Sewer Ref. Revenue Bonds, Series 1999 Advance Refunding of Series 1991 (2002-2021) Swap Rates as ofl/6/99 I Dated Date 10/01/2001 Delivery Date 10/01/2001 I Period Annual Ending Principal Coupon Interest Debt Service Debt Service I Oct 1, 2001 Apr 1, 2002 142,057.50 142,057.50 I Oct 1,2002 190,000.00 4.700% 142,057.50 332,057.50 474,115.00 Apr 1, 2003 137,592.50 137,592.50 Oct 1, 2003 195,000.00 4.700% 137,592.50 332,592.50 470,185.00 I Apr 1,2004 133,010.00 133,010.00 Oct 1, 2004 210,000.00 4.700% 133,010.00 343,010.00 476,020.00 Apr 1, 2005 128,075.00 128,075.00 Oct 1, 2005 220,000.00 4.700% 128,075.00 348,075.00 476,150.00 I Apr 1, 2006 122,905.00 122,905.00 Oct 1, 2006 225,000.00 4.700% 122,905.00 347,905.00 470,810.00 Apr 1, 2007 117,617.50 117,617.50 I Oct 1,2007 235,000.00 4.700% 117,617.50 352,617.50 470,235.00 Apr 1,2008 112,095.00 112,095.00 Oct 1, 2008 250,000.00 4.700% 112,095.00 362,095.00 474,190.00 I' Apr 1, 2009 106,220.00 106,220.00 Oct 1, 2009 255,000.00 4.700% 106,220.00 361,220.00 467,440.00 Apr 1, 2010 100,227.50 100,227.50 Oct 1, 2010 270,000.00 4.700% 100,227.50 370,227.50 470,455.00 I Apr 1, 2011 93,882.50 93,882.50 Oct 1, 2011 280,000.00 4.700% 93,882.50 373,882.50 467,765.00 Apr 1, 2012 87,302.50 87,302.50 I Oct 1, 2012 300,000.00 4.700% 87,302.50 387,302.50 474,605.00 Apr 1, 2013 .80,252.50 80,252.50 Oct 1, 2013 310,000.00 4.700% 80,252.50 390,252.50 470,505.00 I Apr 1,2014 72,967.50 72,967.50 Oct 1,2014 320,000.00 4.700% 72,967.50 392,967.50 465,935.00 Apr 1, 2015 . 65,447.50 65,447.50 Oct 1, 2015 345,000.00 4.700% 65,447.50 410,447.50 475,895.00 I Apr 1, 2016 57,340.00 57,340.00 Oct 1, 2016 360,000.00 4.700% 57,340.00 417,340.00 474,680.00 Apr 1,2017 48,880.00 48,880.00 I Oct 1,2017 380,000.00 4.700% 48,880.00 428,880.00 477,760.00 Apr 1, 2018 39,950.00 39,950.00 Oct 1, 2018 395,000.00 4.700% 39,950.00 434,950.00 474,900.00 I Apr 1, 2019 30,667.50 30,667.50 Oct 1, 2019 415,000.00 4.700% 30,667.50 445,667.50 476,335.00 Apr 1, 2020 20,915.00 20,915.00 I Oct 1, 2020 435,000.00 4.700% 20,915.00 455,915.00 476,830.00 15-Jan-99 9:38 am Prepared by Hanifen, Imhoff Inc. Page 7 I I I I I I I I I I I I I I I I I I I I BOND DEBT SERVICE City of Winter Springs, Florida Water and Sewer Ref. Revenue Bon.ds, Series 1999 Advance Refunding of Series 1991 (2002-2021) Swap Rates as of 1/6/99 Period Ending Annual Principal . Coupon Interest Debt Service Debt Service 10,692.50 10,692.50 455,000.00 4.700% 10,692.50 465,692.50 476,385.00 6,045,000.00 3,416,195.00 9,461,195.00 9,461,195.00 Apr 1, 2021 Oct 1, 2021 15-Jan-99 9:38 am Prepared by Hanifen, Imhoff Inc. Page 8 I I I I I I I I I I I I I I I I I I 15-Jan-99 9:38 am Prepared by Hanifen, Imhoff Inc. I AGGREGATE DEBT SERVICE City of Winter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 1999 Advance Refunding of Series 1991 (2002-2021) Swap Rates as oflj6j99 Water and Sewer Ref. Period Revenue Bonds, Aggregate Ending Series 1999 Debt Service Oct 1, 2002 474,115.00 474,115.00 Oct 1, 2003 470,185.00 470,185.00 Oct 1, 2004 476,020.00 476,020.00 Oct 1,2005 476,150.00 476,150.00 Oct 1, 2006 470,810.00 470,810.00 Oct 1, 2007 470,235.00 470,235.00 Oct 1, 2008 474,190.00 474,190.00 Oct 1, 2009 467,440.00 467,440.00 Oct 1, 2010 470,455.00 470,455.00 Oct 1,2011 467,765.00 . 467,765.00 Oct 1, 2012 474,605.00 474,605.00 Oct 1, 2013 470,505.00 470,505.00 Oct 1,2014 465,935.00 465,935.00 OCt 1, 2015 475,895.00 475,895.00 Oct 1, 2016 474,680.00 474,680.00 Oct 1,2017 477,760.00 477,760.00 Oct 1, 2018 474,900.00 474,900.00 Oct 1,2019 476,335.00 476,335.00 Oct 1, 2020 476,830.00 476,830.00 Oct 1, 2021 476,385.00 476,385.00 9,461,195.00 9,461,195.00 Page 9 I I I I I I I I I I I I I 'I I I I I I ESCROW CASH FLOW City of Winter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 1999 Advance Refunding of Series 1991 (2002-2021) Swap Rates as of 1/6/99 Date Present Value Other Net Escrow to 10/01/2001 Cash Flows Receipts @ - 5,895,600.00 5,895,600.00 5,895,600.00 5,895,600.00 5,895,600.00 5,895,600.00 Oct 1, 2002 Escrow Cost Summary Purchase date Purchase cost of securities 10/01/2001 5,895,600.00 Target for yield calculation 5,895,600.00 15-Jan-99 9:38 am Prepared by Hanifen, Imhoff Inc. Page 10