The URL can be used to link to this page

Home My WebLink About2000 08 14 Regular (2) I, I I I I I I I I I I I I I' I I I liIIIZIIIl.IIUiIi____...un __. __ -- -\ The City of Winter Springs, Florida ....a.HII'I- __IH__~_._ __ H_ Proposal to Provide Investment Banking Services February 17, 1999 F N .- ... I I I ~1l~N I [r~Kilu I I I I I I I I I I I IF'ol1'sll {!JJIl\lOCIl\l lCall~illallD lMJalll1'lltcells lCCl1'iPl. Member NYSE, NASD, SIPC FL2106 20 North Orange Avenue, 1 st Floor Orlando, Florida 32801 407 649-5484 Fax 407 649-5505 February 17, 1999 Mr. Harry Martin Finance Director City of Winter Springs 1126 East State Road 434 Winter Springs, FL 32708 Dear Mr. Martin: First Union Capital Markets Corp, ("FUCMC") is pleased to submit our quaJifications to serve as Investment Banker for Underwriting Services for the City of Winter Springs, Florida (the "City"). We are confident that our unique, comprehensive blend of resources and expertise will enable the City to achieve the lowest possible costs for this proposed financing, FUCMC distinguishes itself from other candidates in that when selecting FUCMC as investment banker or managing underwriter, the City will have at its disposal the expertise and resources of the entire First Union Corporation. It is significant that local governments in Florida are realizing the benefits of having a major bank holding company as their underwriter. The diversity of financial products offered by FUCMC cannot be matched by any other banking firm, Our objective is to be an aggressive team participant in working with the City and its financial advisor in the pursuit of successful financings. While our written submission details our qualifications, we offer relevant key highlights below: Experience of Personnel - FUCMC offers the City over forty-five years of collective experience in the municipal marketplace. Our professionals designated to the City, Mr. Craig Hunter, Managing Director, and Mr. John White, Project Manager, are experienced in all types of municipal financings, More specifically, Mr. White served as Senior Managing Underwriter for the City of Winter Springs $9,365,000 Improvement Refunding Revenue Bonds, Series 1993 Issue. Our lead underwriter, Mr. Jerry Eichler, has over 15 years of experience in the pricing of Florida tax-exempt bonds, including forward refundings, Florida Presence - FUCMC maintains fully staffed Public Finance offices in Orlando and St. Petersburg. This regional presence will assure the City quick and timely responses to its questions and financing needs. In Florida, First Union maintains $35 billion on deposit in 634 branches. Additionally, the company employs 11,000 people in the State. Commitment to Seminole County - Our Project Manager John White, Vice President, has been instrumental, over the last several years, in serving not only Winter Springs but also numerous other local governments within the County. In addition, he has served as Senior Managing Underwriter to the Cities of Casselberry and Lake Mary, and recently completed serving as senior manager for Seminole County's $24,060,000 Sales Tax Revenue Refunding Bonds, Series 1998. In addition, he has provided bank loan financing to the City of Sanford in 1998. He is familiar with the City's debt structure, Capital Improvement Program, and revenue sources flowing into the City. Our familiarity with Winter Springs' government and our continued presence and involvement in Seminole County allow Mr. White and the FUCMC team to be highly responsive to the City, This gives us the unique ability to access any credit or structuring issue as well as the manner in which these issues should be addressed. I I I I I I I I I I Multiple Financin~ Options - Many issuers have identified the benefits of having a major bank holding company as their Underwriter. First Union National Bank is the sixth largest bank in the United States, By utilizing the entire spectrum of resources and expertise of First Union Corporation, FUCMC can present the City with different financing options such as bonds, bank loans, lines/letters of credit and investment products, Our team will adopt a "best-execution" approach when analyzing alternative means of financing capital projects and can also offer the City other permanent or interim financing options. As an example, the Florida League of Cities in conjunction with FUCMC has developed a new financing program known as the Florida Municipal Loan Program. The City's proposed financings may be excellent alternatives and the City's Financial Advisor would be able to review all financing documents. The first series of bonds could be issued as early as April 1999. As an example of our analytical capabilities we have taken the liberty of providing a refunding and new money scenario in Appendix A. This analysis assumes refunding of the City's outstanding Improvement Refunding Revenue Bonds, Series 1989 and new money financing of $5,000,000 wrapped around the Series 1989 bond refinancing. Estimated net present value savings on the refunding is $313,343 or 10,90% of refunded bonds, Underwritin~ and Distribution Capability - As a leading regional underwriter of tax- exempt bonds, FUCMC has consistently demonstrated its commitment to the primary and secondary tax-exempt marketplace throughout the market franchise. During 1998 FUCMC ranked tenth in senior managed issues in the U.S., having underwritten 384 issues with a par amount of over $5.77 billion, Our sales force now numbers 91 institutional and 1,700 retail brokers throughout the 12-state franchise area. I I I I I. On behalf ofFUCMC and the First Union Corporation team, thank you for the opportunity to submit our credentials to the City, Securing engagements such as investment banker for Winter Springs is an integral part of our continued success in Florida, Moreover, we are confident that we offer a high quality level of service and the resources necessary to ensure a successful financing. Respectfully submitted, ~~ John White Vice President Florida Public Finance I I I I I I I I I I Proposal to Provide Investment Bankinf( Services for the CITY OF WINTER SPRINGS, FLORIDA TABLE OF CONTENTS SECTION 1, Finn Information 2. Financing Team 3. Prior Winter Springs Financings 4, Senior and Co-Managed Florida Financings 5, Rating Strategy 6, Fees and Expenses 7, Marketing Strategy 8. Litigation 9. G-38 Standard Disclosure 10. Conflict of Interest Statement 11. References 12. Firm Qualifications APPENDICES A Quantitative Analysis FIRST UNION Capital Markets Corp. I I I I I I I I I I I I I Proposal to Provide Investment BankinK Services for the CITY OF WINTER SPRINGS, FLORIDA 1. Provide a brief history and organizational structure of your firm. FIRST UNION CORPORATION First Union Corporation is a national investment and commercial bank founded in 1908 in Charlotte, North Carolina. Over the years, the firm has grown, through geographic and service diversification and acquisitions to become the sixth largest financial institution in the United States, with total assets exceeding $237 billion. In 1998, First Union completed the purchase of Wheat First Butcher Singer, a diversified financial services company providing investment banking, securities brokerage, financial advice and asset- management to individual and institutional investors worldwide, currently servicing client assets in excess of $30 billion. In addition, First Union recently completed its $17.1 billion merger with CoreStates Bank, N.A., giving First Union the largest deposit share of any bank on the East Coast. First Union Corporation currently provides its diverse and specialized resources to sixteen million customers throughout the franchise region. First Union Corporation is a publicly held company whose stock is listed on the New York Stock Exchange under the ticker symbol "FTU." It conducts business through several wholly-owned subsidiaries including: ~ First Union Capital Markets Corp., providing investment banking services to public-sector, nonprofit, and not-for-profit organizations including state and local governments, agencies, and authorities, as well as educational and health-care systems; ~ Wheat First Union, providing investment banking services to private-sector clients; ~ First Union National Bank, with a branch office network that includes nearly 3,000 locations; ~ First Union Mortgage Corporation, one of the largest providers of home mortgages in the United States; and ~ First Union International Banking Corporation, serving a market franchise that includes Latin America, Asia and South Africa. FIRST UNION CAPITAL MARKETS CORP. First Union Capital Markets Corp. ("FUCMC") was founded as a result of a strategic emphasis by our parent company, First Union Corporation, to offer our clients greater access to the capital markets through the full range of financial products and services offered by traditional investment banks. Our goal is to build an organization that provides clients with the level of services and depth of resources only available previously from a Wall Street firm. Since the initiative was launched in 1994, we have built an organization with over 4,700 employees and $880 million in capital. In 1998, our firm ranked tenth nationwide in tax- exempt senior managed negotiated and competitive issues, having underwritten over $5.77 billion worth of issues nationwide. During 1998 in Florida, our firm ranked 7th in tax-exempt senior managed negotiated issues with $497 million worth of issues underwritten. The FUCMC Public Finance Group consists of 53 professionals located in 11 offices: St. Petersburg, FL; Orlando, FL; Summit, NJ; Philadelphia, PA; Scranton, PA, Pittsburgh, PA; Richmond, VA; Charleston, WV; Charlotte, NC; New York City, NY; and Hartford, CT. Each office is fully staffed with investment banking professionals knowledgeable in all areas of municipal finance. Collectively, our team offers an average of over ten years of public finance experience. With this depth of experience we are able to effectively match our resources to each prospective investment banking opportunity. We maintain two fully-staffed public finance offices in Orlando and St. Petersburg with 5 full time public finance bankers. The resources of these offices would be employed as necessary in any engagement or financing undertaken by the City. These offices are supported by our in-house Analytics group in Charlotte, North Carolina which is available on a full time basis to provide timely quantitative and analytical support to our team of investment bankers in Florida. FIRST UNION Capital Markets Corp, I I I I I I I I I I . . - - - - Proposal to Provide Investment Bankinl( Services for the CITY OF WINTER SPRINGS, FLORIDA 2. Name, qualifications, experience and location of those persons who will be assigned to work with the City Staff, Financial Advisor and Legal Counsel. FINANCING TEAM A~ CO-PROJECT DIRECTOR Mr. Craig Hunter Managing Director Florida Public Finance 1112nd Avenue NE, STE 815 St, Petersburg, Florida 33701 Tel: 727/898-0069 CO-PROJECT DIRECTOR Me. John White Vice President Florida Public Finance 20 North Orange Orlando, Florida 32801 Tel: 407/649-5164 QUANTITATIVE SUPPORT Mr. Dean Z. Pinard Director Public Finance 301 South College Street Charlotte, NC 28288 Tel: 704/383-6742 CREDIT ANALYSIS Mr. Norman Lovitch Vice President Public Finance 301 South College Street Charlotte, NC 28288 Tel: 704/383-4067 - FLORIDA UNDERWRITING Mr. Jerry Eichler Vice President Florida Sales and Trading 301 South College Street Charlotte, NC 28288 Tel: 704/383-9796 - FUCMC has assembled a talented and experienced professional team to serve the City. The day-to-day responsibilities of the financing will be overseen from our Orlando, Florida office by Mr. John White, Vice President. He will also ensure that proper coordination of First Union's vast resources will be available to the City. Mr. Craig Hunter, Managing Director will have overall responsibility for any financing undertaken by the City. In our Charlotte, North Carolina office, Mr. Dean Pinard, Director, will provide quantitative and technical support. Mr. Norman Lovitch, Vice President, will assist in any credit analysis needed by the City. Mr. Jerry Eichler, Vice President, will serve as lead underwriter in the pricing of the bonds while also providing up-to-the-minute market information. These individuals will be available on a full time basis to the City of Winter Springs to provide support and information regarding any proposed debt financing. John White Vice President Orlando, Florida (407) 649 - 5164 Mr. White joined FUCMC as Vice President for Florida Public Finance in July 1997. Prior to joining First Union, Mr. White served as Vice President for William R. Hough & Co. in Melbourne and Orlando, Florida. He has been involved in over $800 million in tax-exempt municipal financings since 1991, including investment banking services for Palm Beach, Seminole, Lake, Volusia, Polk, Martin, Brevard, and Osceola Counties and the Cities of Cocoa, Cocoa Beach, St. Cloud, Ocoee, Lake Wales, Clermont, Eustis, Tavares, Lady Lake, South Daytona, Titusville, Lake Mary, Bartow, Melbourne, Winter Springs and DeLand. Recently, Mr. White completed work as Senior Manager for Osceola County's $62,250,000 FIRST UNION Capital Markets Corp. I I I I I I I I I I I I' I - ii . Proposal to Provide Investment BankinK Services for the CITY OF WINTER SPRINGS, FLORIDA Capital Improvement Revenue Bonds, Series 1998 and Palm Beach County's $30,000,000 Water and Wastewater Revenue Bonds, Series 1998. Mr. Mr. White has served clients throughout Florida on financings involving water/sewer, electric, special assessments, stormwater, and numerous ad valorem and non-ad valorem transactions. Mr. White received his Bachelor of Science and Masters of Arts degrees from Middle Tennessee State University, is a former City Manager and Budget Director for thirteen years, and is a NASD Registered General Securities Representative (Series 7) and also holds an NASD Series 63 License. Craig M. Hunter Managing Director (727) 898-0069 St. Petersburg, Florida Craig M. Hunter is Managing Director of Florida Public Finance and would have overall responsibility for the firm's investment banking engagement with Winter Springs. Prior to joining FUCMC in March of 1997, he served ten years at William R. Hough & Co. starting as First Vice President and finishing as Senior Vice President and Public Finance Manager his last three years. Mr. Hunter spent thirteen years in local government as a city/county manager. Mr. Hunter has been directly involved in over $2.5 billion in senior managed financings since January 1, 1992. This includes senior managed financings for such governments as Citrus County, Collier County, Escambia County, Hernando County, Lee County, Leon County, Palm Beach County and Volusia County, as well as the City of Coral Springs, the City of Deerfield Beach, the City of Fort Myers, and the City of Pensacola. In addition, Mr. Hunter has been involved in the whole range of municipal financings, including certificates of participation, water/sewer, electric, solid waste, gas tax, special assessments, utility acquisitions, community redevelopment, lease purchase, sales tax, and many others. Dean Z. Pinard Director/ Analytics (704) 383-6742 Charlotte, North Carolina Dean Pinard is the Director of the Quantitative Group within FUCMC's Public Finance Department. Mr. Pinard is responsible for the identification and implementation of structuring enhancements and arbitrage opportunities for municipal bond transactions. In addition, Mr. Pinard is responsible for developing, structuring and implementing new financial techniques and innovative financial products. Mr. Pinard works closely with the Municipal Finance and Risk Management Groups at FUCMC to structure tailor- made privately placed loans and interest rate risk management products. Prior to joining FUCMC, Mr. Pinard was a Vice President in Wheat First Butcher Singer's Public Finance Group. Mr. Pinard provided in-depth quantitative analysis of municipal clients' existing and proposed debt service structures including: innovative refunding structures, single and multi-family housing transactions, identification of arbitrage opportunities, escrow restructurings and identification of areas which may benefit from the implementation of interest rate risk management contracts. Mr. Pinard also worked to structure and price Treasury bond futures and options which were utilized in a Public Finance portfolio hedging strategy for both managed and structured portfolios. Mr. Pinard graduated with high honors from Villanova University with a B.S. in Finance and Accounting. Mr. Pinard holds NASD Series 7, 63, and 52 licenses. FIRST UNION Capital Markets Corp. I I I I I I I I I I I I I I I . - Proposal to Provide Investment Banking Services for the CITY OF WINTER SPRINGS, FLORIDA Mr. Norm Lovitch Vice President (704) 383-4067 Charlotte, North Carolina Mr. Lovitch has over ten years experience as a municipal credit analyst specializing in utilities. Mr. Lovitch spent 5 years with the Standard & Poor's Corp. in New York, primarily with the municipal utility group. Mr. Lovitch has also spent an additional 5 years with a leading regional investment banking firm where he established a research franchise in utilities and worked closely with municipal industry participants. He has a wide range of experience throughout the country with retail and wholesale utility systems and in particular water and sewer systems. He has followed industry trends and regulatory developments and used this information to best position clients with regard to the bond market. Mr. Lovitch has a B.S. in Fisheries Biology from the University of Massachusetts and an MBA 10 Corporate Finance from Long Island University in New York. Jerry Eichler Vice President - Florida Municipal Sales & Trading (704) 383-9796 Charlotte, North Carolina Jerry Eichler joined First Union Capital Markets Corp. in August 1997 and is responsible for underwriting all Rorida competitive and negotiated transactions. Mr. Eichler had worked at Prudential Securities in Boca Raton has been trading and underwriting Rorida municipal bonds continuously since 1983. Mr. Eichler received a Bachelor of Arts degree in Business Administration from Rutgers University. He holds NASD Series 7 and Series 63 licenses. FIRST UNION Capital Markets Corp. I I I I I I I I I - I I I - - - . . - Proposal to Provide Investment Banking Services for the CITY OF WINTER SPRINGS, FLORIDA 3. Has your firm, or member of your firm, have any prior experience as senior manager or co-manager on previous City of Winter Springs issues? If so, please describe. PRIOR EXPERIENCE While working with another firm, Mr. John White served as Lead Banker and Senior Manager on the $9,365,000 City of Winter Springs, Florida Improvement Refunding Revenue Bonds, Series 1993 issue. Mr. White continues to monitor the status of the City's debt structure as well as its current revenue streams and bonding capacity. He is well-versed in the City's financing needs and outstanding debt issues. FIRST UNION Capital Markets Corp. I I I I I I I I I I I I I I I . - .... - - Proposal to Provide Investment BankinK Seroices for the CfIY OF WINTER SPRINGS, FLORIDA 4. Please list the Florida financings your firm has serviced as a Senior Manager or Co-manager over the past (3) years, the type of revenue source, size of transaction, T.!. C. and underwriting cost for each issue. FIRST UNION CAPITAL MARKETS CORP.'S SENIOR AND CO-MANAGED flORIDA FINANCINGS: FEBRUARY 1 7, 1996 - FEBRUARY 1 7, 1999 FUCMC has extensive experience in underwriting all types of negotiated and competitive issues in Florida and across the nation. Since February 17, 1996 FUCMC has senior and co-managed 70 transactions in the State of Florida for a total par value of $2,797,887,000. In 1998, the firm senior and co-managed 34 negotiated transactions in Florida for a total par value of $1,421,275,000. The chart on the following pages provides a breakdown of these financings. FIRST UNION Capital Markets Corp. - - - - - - - - - - - - - - - - - - - FIRST UNION CAPITAL MARKETS CORP, SENIOR AND CO-MANAGED FINANCINGS: FEBRUARY 17,1996 - FEBRUARY 17, 1999 93,135 ESCAMBIA COUNTY HOUSING FINANCE AUTHORITY ..iiAY.c6"uNi'Y~..Fi:oRiDA"..""".....-"."-.".""-".-.""-.. I CERTIFICATES OF PARTICIPATION, SERIES 1999 IWATER & SEWER SYSTEM REVENUE AND REFUNDING BONDS, SERIES 11999 SINGLE FAMILY MORTGAGE REVENUE BONDS, SERIES 1999 (MULTI COUNTY PROGRAM) I 'SAlES.TAX.REVENUEBONoifsERiEs.199S..,_....-_...._'".".-''''--.''--.''--''--''-'lBAy-C6''UNTy.~.RE-SOURCE.- ....". -"-"REV""-".... 1 RECOVERY FACILITY ACQUISITION IFLORIDA ATLANTIC UNIVERSITY , I i II NEGOTIATED] SENIOR i MANAGER! I 0.00% I 0 i NEGOTIATEDI---Co::-.--II : I I I MANAGER I 4.94% I 8.39 i NEG~.-"C-O:-.--l "4:76%...j.....5~8a.."fNEGOTiATE.61-~~~~~ ..j ! MANAGER I 4.13%: 6.32 i NEGOTIATED --SENIORI i i MANAGER I ."'."...",..,."'.""'.,-"'.."".".,.""",,,.,. .",..,'-,.,.,...,......"....1 I 4.45%: 14.7 j NEGOTIATED SENIOR I ; ! MANAGER o i NEGOTIATED co.-i , MANAGER ! ...._+..mm......__...._...._......._....l.._."....."_~_......_..._. ._ ...: o : NEGOTIATED I SENIOR i I 1 MANAGER i 0.00% 4.976 i NEGOTlATEDt--CO:--.-1 : I MANAGER I REV I 0.00% 0-: NEGOTlATE51-"SENIOR"."! ...,.....-.REviREF"14:9i%"j..,, ..6:8"1....,,"i.NEGOi'iATED1..~~%~R.....1 i ,,__L.~AN~~~~J REVIREF I 4.72% I 5,35 i NEGOTIATED SENIOR I Iii MANAGER I ""REVIREF l"O.OO%.t .6~25""tNEGOTiATED -"...-""co::.""-I R'V! ..'" ! -''i"'GmTA'''' ~~~I REVIREF I 0.00% i 0 I NEGOTIATED -CO:-..I ; MANAGER I ......--.--.-.--.-.......--.--...-.-.-.-...--.... - .. -.. REV -.. -":~-4~2oA; ~_. -. 6-42- --1 NEGOTIA Te-ri - - SENIO-R --I G.O. : 4.22% i 5 739 ~GOTiATED11-"~;;~~~~".1 ' MANAGER _.._-_.__.....~--_....~....~................_................__._..._.. REV/REF: 5~OO% :. 6.59 -;'NEG-OTIATEDj ~ SENIOR ! " i MANAGER I .---- GOTIATE-Ot,'~-SENi6R.--1 i 4.71% i 0 L.M~~G~~. ! 4.99% i 3.49 ,NEGO.TIATEDi CO. i ! ! i MANAGER : REVIRE"F .4".440k'....-4:ia-TNEGOTiAi'E.O'I'q"... CO:--"l i! MANAGER . "'."-LEASE-REi/" ,.504%r"-e39--rNEGOTiATEOj.CO:. ..,,1 ! ! I i MANAGER I 1-4.53;~'r-5-:O-8-rr\iEG6TiATE611 -""CO:.".""'II : I i MANAGER ""''''''."_.,.,.".",.L",..,,,,'....., ".L...''''....'''''_.."...L..,...'''......,.".."..........,,L,,., ..., ",,,., ."..,.. '" ,.J REV 2/4/99 101,000 213199 I ..i2i16i98!....."".47~ioo...".- I REV 1217/98 4,680 FORT WALTON BEACH, CITY OF PUBLIC IMPROVEMENT REFUNDING REVENUE BONDS, SERIES 1998 REV I .-;2/7198-[".".". .2:B3S".".""..SAAASOTA:.Cii'YOF"-".-".."""-,,.-.--..."-"-T'^'AfEif&s~R-REVENUE-REFLj'N"[jINGBONDS:SERiESl99S.--."..,,--"-,---...-..."-------"--,,.-""" ." 12/2198: 101,190 HIGHlANDS COUNTY HEALTH FACILITIES I HOSPITAl REVENUE BONDS, SERIES 1998 IADVENTIST HEALTH SYSTEMI I' AUTHORITY l . ! SUNBEL T ,.-.-.---".,-- ...-"..,..-....."...-.,.".-"..'''' .......,.."...,..."..."..............",.."......."...."."-,,,,,.........,.,,--,,_.._,--_._,,,,.,,- ---...--".-."."..--.---...'''''....'''''-'''.".-"."....".........,........".."..,..,........."................................ ..,.,.".".""".,."",."., "....".,..,...,.,',..,..,",..,.,...,.."....,..,,,.,,....,.."...........,..q....,.,."..."""."" 11/5/98 : 5,900 ORANGE COUNTY INDUSTRIAL !VARIABLE RATE DEMAND REVENUE BONDS, SERIES 1998 ITRINITY PREPARATORY SCHOOL i DEVELOPMENT AUTHORITY . 10/20/98 i 25,000 HILLS BOROUGH COUNTY ,SPECiAl REVENUE AND REFUNDING BONDS, SERIES 1995 !TAMPA PORT AUTHORITY I I i REV REV i 0.00% I ..... H.-.....-....___._.~...._.__..J...._......__........l_ REV i 0.00% ' i REV 16,000 ORANGE COUNTY INDUSTRIAL IVARIABLE RATE DEMAND REVENUE BONDS, SERIES 1998 !lAKE HIGHlAND PREPARATORY DEVELOPMENT AUTHORITY I iSCHOOL ....--.....--....-.-...-....-........--....-...-.-.-......----......__..t..__....__R_R_.____.._._.__w.__w....~_._.___...._.,.....-.__._~__._.__.__w__..__w_.n___..._..~...__-i..__..___._.__._.....__._......._......._......._.._m....__.R......._....._ SEMINOLE COUNTY 'SALES TAX REVENUE REFUNDING BONDS, SERIES 1998 i I I 9/29/98 ; I _____.__1....._....__.__............_.... 9/23/98 i 24,060 i , 9/23/98 I 72,560 BOCA RATON COMMUNITY TAX INCREMENT REVENUE REFUNDING BONDS, SERIES 1998 'MIZNER PARK ~;;wo- ~~ "",,,0,",'- IWAiERumT"""",,"' 'O'D."~''''''''..-----I~------ -8/28198T""..45:955._.... TiTUsviLLE-"--".----".,,""-.,,-------.lwA TER"&SEWER-REvENuEBONos~sERiEs1998-"--...-....".-."..-""---""-.-"1"-..--"""-"."--..--"".-.-.."--.-"".- 8/26/98 i 46,640 GREATER ORlANDO AVIATION AUTHORITY iAIRPORT FACILITIES REFUNDING REVENUE BONDS, SERIES 1998 I 1 I . -8i5i9ii.".r"".".i.s:4"10-"....NASS)i.."U.CoU"r\i"fi-"-.--.,"''''"..-""-"""-".,,--.-."lGA"S"TAX-REVEN-UE..REFUNDlNGAND.iMPROVEMENT80N.Ds~sER"iE.s.i998r"""".""" ! I "::~::I,,,.,,...:~,:~._..,,..,, ~:~"~~~~"~~~~"~:_,,..,,"",,...,,. jGENERAL OBLIGATION REFUNDING BONDS, SERIES 1998_"1",,._.,,_ 6/16/98 i 16,865 ENGLEWOOD WATER DISTRICT.".-."lui'iLiTYSYSTEMREVEr\iUE.REFUNOiNG.S.or\iDs:.SERiESi9S8 1 I ! 6/15/98 i 30,000 PALM BEACH COUNTY jWATER & WASTEWATER REVENUE BONDS, SERIES 1998 "..Wl0t9B""f"-".."i4:150...".".N.ORTHPORT""-""""""",,....." ,-.".,,-.j"Ui'iLiTY.SYSTEM-REFUNDIN-G.REVE"NUEBONOS:.SERIES.19SS-. ; NORTH"PORT.. I'! 5127/981 51,760 BROWARD COUNTY IGAS TAX REVENUE REF"UNDING BONDS~SERiES1998-----.,,--tBROWARD COUNTY . .... ......,.,.-.......,..".."........".......,......-".",.,.......,,,.....,.,,.,,,,..,,..,...,,..--..,,..,-,-,,.1,..,,.."",,,.-.-,.-,,,,...,,.-.-..,,.,.- ,..".,-,-...,..".,.,..."..,,,,,,,,.......,,....,,,,..,...,,,..,."'"".,"',""'""-,.."..,.........,....,.....,,,..,,,................ ..,.J ,.""",."..,.-"...".".-,.,..",,,,,,,,,,..,.,-.,,.,,,.......,,,...,.....,,,,.....,,,- .'''5ii'2J98.l'' "'"'''i.i;il4o.''' ALACHUA COUNTY SCHOOL BOARD ICERTIFICATES OF PARTICIPATION, MASTER LEASE PROGRAM SERIES jALACHUA COUNTY SCHOOL I ,1998\ iBOARD 5/12/98[- 59,350 BAY COUNTY SCHOOL BOARD I SALES TAX REVENU"EBCiNDS,-s-ffiiE:"S 1995- -".----jBAY COUNTY S-CHOOL DISTR"icT-" "-,, _,__.__._J".".._._'''__._''''_ ..".".",.".___,",.,_,__,._.."".,""~."'"..,,,,",.,,_...,,"..___..."._._1...___..",.__""".,..__,."_.,_.__..,_._..,,........._""_,,,,_,,._,.,,...,,_,,_.,_,,_.,,,_..,,,..,,,.. ,.."."..,."_..."..._,1..._..,,_.,_.,."'..__,,..."".,....._'''_.",.'''''''''''.''''''..,.''.'''''''''''."...._... ,,,,.,,_ REV REV REV - - - - - - - - - - - - - - - - - - - FIRST UNION CAPITAL MARKETS CORP, SENIOR AND CO-MANAGED FINANCINGS: FEBRUARY 17, 1996 - FEBRUARY 17, 1999 ~~J~~~~~Q~~~r:~i~:~~~r1~;;g~~);~t;J ~:~) -::-1-=--. ~~~~~;;~":---~muc____"",-OON~S",.--------- ----- --.,,--I::~~I::::;:;:~I. E~: I 4/6/98 9,525 HERNANDO COUNTY I CAPITAl IMPROVEMENT REVENUE REFUNDING BONDS, SERIES 1998 I REVIREF ! 4.97% i 7.53 j NEGOTIATEDl SENIOR- 416198./'. 6,760 ........ HERNAN.fjOCO.UNTY............................-... .-'WATER&SEWER'R.EVEN'UE'REFUN6iNcfsONDs';sERi.E's.19S13""...............--1............ ... ...............--..............................,.-........-., ............'RREE.'Vv .....11:45...'.~945...0~.11.3:.43'..-72-.:lt.NNEE..GG.,..'oOTT.il.AATTEE.DD-I~ssE;N~I~O:RR:m :212~319~8~1~1:5~,OOO-0:0-Jp:Al:M~B:EA:C~H~C~O~U:N:T-Y:H~EAl-T-H-FmA-C-I-LIT-IE-S-rV~AR~I~A-B~L~E:RA:TEEDD~EM~-AN:D~R~E:V:E:N:U:E:B:O~N:D:S~,~S~E:R~IEE:S~1:9:9:8--_I==~~~~M I -I i ~~ j BOCA COMMUNiTYHOSPITAL---------REV-....-To:oo%t.i:i:'s-..rN-E'GofiATE-fj ..... ..sENioR ..... I AUTHORITY Iii I MANAGER , 2/16/98 i 62,250 OSCEOLA COUNTY I CAPITAl IMPROVEMENT REVENUE BONDS, SERIES 1998 REV I 0.00% i 4.59 I NEGOTIATED SENIOR'.-1 I I I : ;! ~GER I 2/11/98 'I. 28,450 BAY MEDICAL CENTER, BOARD OF I HOSPITAL REVENUE REFUN~ING BONDS, SERIES 1998 I BAY MEDICAL PROJECr-. REVIREF I 5.13%-1 7 I NEGOTIATEDi --SENiOR.--l , TRUSTEES OF I' I ! I , MANAGER , -'214i96-r-'--eO)6s'.--''''ESCAMsiA"'cOUNTYHOUSI-NG-i=iNANCE''---TsiNGLE-i='AMii:Y-iioR"iGAGEREVENuE-Eio-NDs:sERiEs1998:ti-'----.- ..-------. . REV1-S:30'A;r- 0 ...jNEGOTiATEOI. '-CO: - - -. ! ! AUTHORITY i I I MANAGER i 1/22/98 I 40,010 ESCAMBIA COUNTY UTILITIES AUTHORITY I UTILITY SYSTEM IMPROVEMEN.T AND REVENUE REFUNDING' BONDS, REVIREF 4.78% I 5,34 : NEGOTIATED i s-fNioR:".'" I ISERIES 19980 (FORWARD) I I I MANAGER .-112.2198.1.--...-46:010---- Es-c'AMBlA-couNi:T--------..------fl:ij:ii:ii:ys-ysTEM REVE-NL.i"E.R.EFUNDiNGBONDS-:-SERiEif199so------.-1---------- .-...------------.---- - -REV.....-t-4:iSOA;.j-S-:S6.'-iNE:GOTiATEil ...-:~~~~;R ..1 1/15/98! 18,200 ESCAMBIA COUNTY UTILITIES AUTHORITY iSANITATION SYSTEM IMPROVEMENT AND REVENUE REFUNDING BONOS, ; REV ! 4,76%' 0 i.NEGOTIATED .-- co-"--'j i .. .._.....___._______._____ ...____._._._..._...._...__._____,_~~:.~~.~..~~~-.-----....______________._.____.._._ _, ....__.___._._......""__.___.____._1...,.._..._.......____............_._.,,_.__.__....... Ii, MANAGER i ..'..'I7'i96-r- 65,960 MANATEE COUNTY, SCHOOL BOARD OF -I CERTIFICATES OF PARTICIPATION - MASTER LEASE PROGRAM, SERIES I MASTER LEASE PROGRAM .., "LEAS.E..R.EV..T"S-:02% .-'s-'-j4'-.TNEGOTiA"TE-oT---- C"6~-'-- - i I ,1998 ' i i I MANAGER i 4130/97' 18,120 PENSACOLA, CITY OF jAIRPORT REVENUE REFUNDING BONOS, SERIES 1998A (FORWARD) ! REV 6.22% i 7.3379-TN-EG6TIAiEDr-"--c6~'--.-"1 -:::1- -,:-. :=:=e=-1:~~:::::::O::::'::,::.-=,,:I--- ------. -::-:-:v:::l':i::~:t~~:-1 ,____.._..__________.,_....,.__......,_"._...,,__ ,19971..._.______.''''__...__.__ I ! i j MANAGER j ::r:~, :::::::.:~::, ---'::::::,:=;:::::::7:"::::::,~- 1------ -:::~r::l : -~::::::::I~~l! I ' , , i I MANAGER -9/9/97 /---11,900 NORTH MIAMI ','SPECIAL TAA OBLIGATiON (PENSION FUND"iNG)BONDS:sERiESi.997-----l-----.-.------.STO-I--o:00%""["0--1 NEGOTiATED.I.------co~...-.j -.m.T-,.,,,-- "'e, ffijiir;"""iY""'"I~';u~;~":.;~~~~~~";;;~~~;;;"AiJiii""U".""M+----------,,,,,,,,,1 '4-0--1NfGO'~".,:;~::. i sm~28,035 ESCAMBIA COUNTY HOUSING FINANCE lSiNliLE FAMILY MORTGAGEREVENUE BONOS, SERIES1997C---l ------.--- -~v-rooo.,i;'"""r_-.O--rNEG6TTATE[d,,-.--co:..--.! I AUTHORITY I . ~ I I ! ! i MANAGER i -8115197"1'""----13;045- IPACE-PRO-PER:TYFiNANCE Al:iTHORITV:INC-'-','UilCITY-SYSTEMlMPROVEMENTANDR-EVENUE-REFUNO-INGBONDS:-----j--------.,--..-...-.--.,.--..-.I REviR-EF":-6:6ooA;"r--or NEGO;--i:ti'r-Eol . SENIOR . I -...1__ _____. SERIES 1997. ...---.-.----_L__________,____.___.,___________J_._.L___.__1________L MANAGER. i - - - - - - - - - - - - - - - - - - - FIRST UNION CAPITAL MARKETS CORP. SENIOR AND CO-MANAGED FINANCINGS: FEBRUARY 17, 1996 - FEBRUARY 17, 1999 .i~~ ~l~ t ftl.~~ f~~ ~it~b~~ f~~~r~~~~~ ~n:I....i';- :;6::~:;:M'=:'~=~:~;'::=~ ...............-~-I----------- ----"V-I~=t~F::;:: .S:-I _:::_.1-.... :~::..-.-.. ::::;::~:::Y.PORT AUTHORITY- - .-I:~~~:;:i:::::E:~:;:~~:;~~S.~~~~...__..._..._._____.__J1- ------ ----::-1:+~--~~::-~~R-II' , i I! MANAGER 5/14/97 13,660 CLAY COUNTY BOARD OF EDUCATION I;~:~I::;:~:.~~:I~~:~;PATION- MASTER LEASE - PURCHASE I LEASE REV I 5.51% I 0 I NEGOTIATED ~~g~ I "'5i2i9i-'!'---20:44S-- ... .PENSACOLA.....-.-........ ...........--..--..-...---I~~~'r-REVENUEBON6S~SERiES.1997A.iNON-AMTFSERiE-S1997S..--..-1.-....------.--.-.-...-........-.-.-...-- ....-..REV-........l...O~iiO%T.--6~9-.-.1.NEGOiiATE6 ....::~~~~.I 3/20/97 I 300,475 PALM BEACH COUNTY SOLID WASTE lWATER & SEWER REVENUE BONDS, SERIES 1997 A & B I REVIREF 0.00% i 7 i NEGOTIATED. CO- "I ""3il.l'i9i..j.............3.:sio.....". .. ~~~1~~~~~i~~2~~~iAl-".. .............".....lvARiABij~..RiiT.EDEMANDREvENij'e.BONi5s,.SERIES.l.99i.................-.I.UNiVERS.iiYOF.CEN'T'AAlFLORiDA-......REV'.;O:ooo~...l...... O'tNEGOTiATEDI'" "E~~:' "1 11/25/96 I 23,330 VOLUSIA COUNTY INDUSTRiAl iFIRST MORTGAGE REVENUE AND REFUNDING BONDS, SERIES 1996 !BISHOP GLEN PROJECT REV! i 15 i NEGOTIATED~ENIOR I ....i0i24196.~.-.4:i95.-....~~~~~~~u~~~~2:~T~STRJCi.-'.---..-j.REVENUEBO.N-OS-:-SERIES.i.99ii---..--.--..-.-..---..----.---.--...-!- .............--....--..-..-..-. ........ '''''.-REV''.'-''.I'.''O~OO%-~-'''I''N-EGOTiATED!-'~~~~~' ....1 I i I i I MANAGER i 10/21/96! 10,700 PORT OF PAlM BEACH DISTRICT ['REVENUE BONDS, SERIES 1996B .. r ------ -~iI".~-ii(iO%T------:-NEGOTiA'rEDr.- --CO: --- 1 I I; I ; jl MANAGER , 101Bige -j- -- 56:000'- -- ~~e~ROFTRUS'rEESOF-BA iiiEDiCAi-"-'i sERies-19ijii-'HosPIT Al REVENUE'REFUNOINGBONDS- --.- - ----. --- -1 BAY MEOiCAlPROJEC'r-' -- --... -...R.ev1REF.-I.-o.oo%.-r..-.-.p~EGOTiA'T'EOt..=~;~l 1018196 I 13.267 PORT OF PAlM BEACH DISTRICT IREVENUE BONDS, SERIES 1996A REV i 0.00% i ! NEGOTIATEO-CO,,-"-l I __,,___1___ ---+-------,....~9.~.~..1 17,745 ESCAMBIA COUNTY UTILITIES AUTHORITY IUTILlTY SYSTEM REVENUE BONDS, SERIES 1996 REV , ! NEGOTIATED; CO" 1 I ! I MANAGER I i ; 1 .. FLO'RioAHOU.SING--FiNANCe-AGE.NCy'........"...- JUNloR'LiEN.H'ouSiNGBoN'o's:.sERies1996---'--..-............-----...---.--i..--.-.-.......-...-....... .....-'--..j.N'EGOiiATEO.I. . ~~~~~ ..\ ;~:;.:-::::::~::::::~_-I:::~';,:;.;:::'R"::._-_ _ --LO'cAPffi--- R<V t:;:;:t~=R~i I ! 1_~_~~_E~..J I REV i NEGOTIATED, CO" I I ; I I MANAGER I ..-."...--... "..........1'............-.....-.......---.---.- . LEASERE1iTO:OO%', ...--TNEGOTiAT'EDI' :~~~~~-'I , , I 12,5 i NEGOTlATEDr-SENI6'R--'1 j , I MANAGER "T"''''''''''''''''''''''''''-''''I "." '" "I ! ! NEGOTIATEDj' CO- ! ! I , MANAGER I ! l-rNEGofiATE~---c6:--1 I.... I I ,1 MANAGER i REV j._~==:_"=~~~]~EGOTi~~~t.~.~~~~:..R J 9/19/96 I I I I I '-9ii'3i9il'r--'3;lS0"- I 9/13/96 ' 15,310 .......___.1... ....."...... 6127/96 1 , ; 4,600 8/16/96 , i I 93,250 LAKELAND IELECTRIC & WATER REVENUE BONDS, SERIES 1996 ...... DADEcouilj'Ty.SCHool'i3oAA.O.OF................"...lc.ERTiFic..ATe"s"oF'PARTicipATloN':SERIEs'i996B'-' EDUCATION BOYNTON BEACH, CITY OF ! MUL TI"FAMIL Y HOUSING MORTGAGE REVENUE BONDS, SERIES 1996 , ! ...................-........-.-.-......... .........1.E"l:E.CTRI.C-&~WATER...REVENUE.-ii6.N'DS.:..SERiE.S"'1"99ti ! iSE~lES 1996A ...."........._..._."..'''...... ."__".,,L..._._..~....._......m'__._._,._'_'.._'m... .._..".___........_......"....".._.._...."...."........,.._."...,....,..._....,...... .._ ISOLlD WASTE REVEN~E BONDS, SERIES 1996 i CLIPPER COVE Ai'AATMENTS ; REV -; 8/15/96 .144,665 7/19/96 11,940 -..6J27J9sT.........-s6;440'.......LAi<.eLANO....-.... I i REV . 4/4/96 75,000 ALACHUA COUNTY HEALTH FACILITIES AUTHORITY .......!SARASoiA'COUNTy....- I iSHANDS TEACHING HOSPITAL .......m W'..__. j~~?~~~!....... i I ! REV i _......_.._...M_......l.._......._........._............ 3/21/96 I 49,770 I.. .. - - - - - - - - - - - - - - - - - FIRST UNION CAPITAL MARKETS CORP. SENIOR AND CO-MANAGED FINANCINGS: FEBRUARY 17, 1996 - FEBRUARY 17, 1999 :t~~;~~f~~r~~~y~~t~~ $2,797,887 TOTAL PAR VALUE OF FINANCINGS 70 TOTAL NUMBER OF FINANCINGS \ I I I I I I I I I I I 1(1) I I . - Proposal to Provide Investment Banking Services for the CITY OF WINTER SPRINGS, FLORIDA 5. Assuming the issues would qualify for bond insurance, what rating strategy for marketing the bonds would your firm recommend? RATING STRATEGY Preliminary Rating Process The City should pursue the preliminary rating services offered by Moody's, S&P and Fitch that do not require public disclosure of an unfavorable response. This will ensure that there are no damaging "surprises" that must be made public once the issue has been evaluated by the rating agencies. FUCMC would work with City Staff and its Financial Advisor to determine if an underlying rating on a particular series of bonds would be achievable. Generally speaking, having an underlying rating on an insured transaction will open up additional Corporate Trust Departments as investors. Begin Rating Agency Dialogue Early We would also suggest starting discussions early with the rating services before the credit, legal and financing issues are "cast in stone" so that a structure that is acceptable to both parties can be negotiated. Credit Presentation Preparation Process FUCMC assists our clients in the entire credit rating and credit enhancement process. We are very familiar with the professionals at each of the rating agencies and bond insurers. FUCMC typically develops a financing schedule, arranges site visits and/or meetings, coordinates the information required for the credit review, assists in preparing the meeting agendas, provides a list of topics to be discussed, and "rehearses" the presentation with FUCMC's participants prior to the meeting date. FUCMC assists our clients in developing a strategy for the presentation which enables our clients to receive the highest possible rating and lowest cost, most flexible credit enhancement proposal. Representatives of FUCMC will accompany City officials to the presentation. FUCMC plays an active role in preparing our clients for rating agency and credit enhancement presentations. To achieve the best credit rating outcome, our preparation process consists of the following steps: We will prepare and distribute to City officials a detailed memorandum containing: (a) a proposed schedule of events for the rating analyst visits and interviews; (b) an outline of suggested remarks for each City official to make in the presentation portion of the interview; (c) a list of potential questions based on other non-profit interviews; (d) a detailed discussion of the City's credit strengths and weaknesses from the perspective of the rating agencies; (e) a list of written materials the City should prepare for the interview and use as visual aides; and (f) a schedule of one or more interview rehearsals. FIRST UNION Capital Markets Corp. I I I I I I I I I I I I I - I - - Proposal to Provide Investment Banking Services for the CITY OF WINTER SPRINGS, FLORIDA 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 FEES AND EXPENSES For either range of issues ($1-$5 million and $5-$10 million), FUCMC would charge a gross spread of $5.45 - $5.85/$1,000. FIRST UNION Capital Markets Corp. . Retail Stratel!V Individual or "retail" investors have always been an important segment of buyers for tax-free bonds. Given state tax considerations and the fact that many investors prefer to buy "local" names, a portion of our retail emphasis will be on Florida residents, especially within First Union's service area. In addition, we will utilize our retail network to aggressively market the City's bonds on a retail basis in other states that traditionally buy Florida paper. Our retail sales force ranks first in the Southeast and eighth nationally in number of sales representatives. Complementing our retail sales force will be the efforts of FUCMC's High Net Worth Group which targets additional wealthy individual investors. The following steps will be incorporated as part of our retail marketing strategy and plan. II' Advertisements in Area Newspaper and "Money Centers" II' Formation of Local Retail Selling Group of Other Underwriting Firms II' Establish Local Retail Order Period of 2 to 3 Days Before Pricing II' Sales Point Memorandum Distributed Internally II' Letter to Friends of the City of Winter Springs II' County Press Release Highlighting Emphasis on Local Availability to Purchase Bonds I · Institutional Stratel!V - I I I I I I I I I I I I . . I Proposal to Provide Investment Banking Services for the CITY OF WINTER SPRINGS, FLORIDA 7. Please describe your approach to marketing, both rated and non-rated issues, type of investor you would seek and geographical location of where the bonds would be marketed from. Should the issue be non-rated, does 'Your firm have a credit approval process? If so, what is that process? MARKETING STRATEGY Rated Issues We recommend that the City consider a two-pronged marketing strategy for rated issues, focusing on both retail investors and institutional accounts with an interest in Florida bonds. Our proposed marketing strategy for the City's bonds would be to generate the lowest possible interest rate by actively targeting all potential investor market segments, thereby achieving the widest distribution. We view the primary segments as (i) Florida individual investors; (ii) other retail investors outside of Florida; and (iii) "Institutional" investors, many of which act as direct or indirect proxies for individual investors. One of the most efficient mix of investors for this transaction is detailed below. L Direct Retail 15 % Optimal Distribution Mix ~ Fund Retail 65 % Institutional 20 % Given the regional name recognition of the City, we would anticipate strong demand not only at a local level, but also on a regional and national scope. INDIVIDUAL BUYER SECTOR STRATEGIES AND ACTIVITIES FUCMC has a network of 91 Institutional Sales and Trading Professionals and 425 Institutional Accounts. - Developing strong interest in the City's transaction is crucial to obtaining the optimal level of interest rates. FUCMC's institutional strategy commences with an identification of key potential buyers. Once identified, all such accounts are contacted and informed about the issue. Similar strategies are encouraged by other members of - the underwriting team. Rather than hold one or a few investor conference calls, FUCMC often has a separate call between each potential buyer, our salesperson and our banking team. Although time-consuming, this is an FIRST UNION Capital Markets Corp. I I I I I I I I I I I I I I I . . Proposal to Provide Investment Banking Services for the CITY OF WINTER SPRINGS, FLORIDA extremely effective marketing tool. As the pricing date nears, FUCMC also identifies potential "swaps" 10 institutional buyer portfolios as another way to increase the number of buyers. To facilitate this institutional effort, FUCMC will look to two of our most senior Florida institutional salesmen. David Johnson, formerly Head of Municipal Trading for Raymond James & Associates, and Bill Junker, formerly Head of Tax-Exempt Institutional Sales for William R. Hough, are Vice Presidents of Fixed Income/Institutional Trading with FUCMC and are situated in St. Petersburg, Florida. OVERVIEW OF INVESTOR DEMAND We would anticipate the breakdown of investor demand to be profiled in the following manner. 1. Bond Funds - Florida and National bond funds act as proxies for retail investors. We would expect their demand to be for the IS to 20 year maturities. II. Retail - Generally represented by in-state residents, especially Winter Springs/Orange County-area residents. We would expect strong local investor participation and expect their demand to be for the I to 8 and the 17 to 25 year maturities. m. Bank Trust Departments - Bank Trust Departments also act as proxies for retail investors. We expect strong demand, particularly for Florida accounts. Demand from this investor segment can be strong for all maturities, but particularly in the 0 to 15 year range. Florida Money Managers - We expect this group of buyers to be a significant purchaser of the City's bonds maturing from I to 5 years and 15 to 25 years. IV. V. Property and Casualty Companies - We expect strong interest from property and casualty insurance companies, especially those operating in Florida. This market segment is particularly sensitive to structure and call features. Asset managers, who manage portfolios for smaller insurance companies and other entities will also be interested in the issue. Demand from this segment of the market will be in the IS to 25 year range. ACTIVITY IN WEEKS PRIOR TO SALE 4 WEEKS PRIOR 3 WEEKS PRIOR 2 WEEKS PRIOR 1 WEEK PRIOR . List fmancing on . Distribution of . Provide description . Distribute fmal ..J internal forward preliminary bond size suitable for outside information to all < 9~ calendar and structuring distribution per sales professionaL~ . Provide preliminary features to sales MSRB/PSA rules . Conference call to E-r.l description of issue to professionals via . Provide anticipated review fmancing ~;>o E-P sales professionals concise circular sale date to likely terms and all salient E== 00 . Conference Call with . Begin preliminary institutional investors features Z managers and selling discussions with - e:roUD members prospective buyers . Create and distribute . Mobilize high net . Advertise in selected . Update broker ..Joo marketing letters worth group local newspapers coordination -c:z:: . Broker coordination . Obtain local . Conduct local buyer . Conference call with <r.l E-;>o . Sales point newspaper coverage of meetings high net worth group ~S memorandum marketing plan to . Establish Pre-Sale residents Marketing Period FIRST UNION Capital Markets Corp. I I I I I I I I I I - I . . . - . . - Proposal to Provide Investment Banking Services for the CITY OF WINTER SPRINGS, FLORIDA Finally, to add emphasis to our marketing strategy we would propose that the City consider a local meeting with potential area retail and institutional investors at a location convenient to all citizens and businesses. During the rating and insurance process a meeting with institutional buyers, in the New York area, would also potentially aid investor demand. The final decision on these meetings would be made by our team while considering market environment, timing and cost benefits. Non-Rated Issues Depending on the availability and attractiveness of credit enhancement, FUCMC could sell the bonds rated or non-rated. FUCMC has worked with numerous first-time issuers in obtaining ratings and credit enhancement. However, if the City chooses to issue non-rated bonds, FUCMC has the proven track record of being able to sell non-rated bonds at the lowest interest rate. FUCMC has acted as Senior Manager on over 120 non-rated publicly offered tax-exempt transactions totaling over $1.4 billion since 1992. FUCMC is able assist in the selection of any combination of these financing alternatives for the City's financing. In addition, FUCMC is unbiased in our financing recommendation to the City because our firm has the capability and extensive experience in tax-exempt or taxable transactions, fixed rate or variable rate transactions, and non- rated or rated transactions. Credit Approval Process (Non-Rated Issues) Internally, FUCMC utilizes a credit approval process through its Capital Markets Fixed Income Credit Committee. The purpose of the Committee is to approve all prospective engagements for the placement and underwriting of fixed income securities. The Committee's role is to consider the merits and risks to First Union of the proposed transaction or activity and to determine whether it is a desirable engagement of the firm's capital, resources, and reputation. The Committee also reviews whether a proposed security meets the standards for retail distribution. All prospective fixed income transactions must be approved by the Committee before First Union has committed to the transaction. "Committed to the transaction" means: · Before an unconditional engagement letter is delivered to the customer, in those cases where the transaction utilizes an engagement letter; · Before First Union has implied uncontingent willingness or ability to perform a transaction, in those cases where an engagement letter is not utilized. In all cases, Commitment Committee approval of the issue must have been obtained before a red herring is distributed. Before a transaction is presented to the Committee, it must have received approval by · The Commitment Committee member responsible for the presenting business unit; · The Compliance Department; and · Capital Markets Credit Administration (except for agented Private Placements). FIRST UNION Capital Markets Corp. I I I I I I I I I I I I - - - Proposal to Provide Investment Banking Services for the CITY OF WINTER SPRINGS, FLORIDA 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. In the ordinary course of business, FUCMC is involved in litigation and regulatory inquiries. None of these matters has been, or is, material to the operation of the firm. The SEC has initiated an enforcement action against FUCMC for alleged conduct occurring in 1993. The employee involved in this conduct left FUCMC in 1994. This employee allegedly agreed to pay a consultant fee contingent upon the business generated in connection with FUCMC being retained as financial advisor in Broward County. The SEC contends that the firm did not disclose this arrangement to Broward County in violation of its written agreement and Florida law. The firm believes it has strong legal and factual defenses and intends to defend itself vigorously. On December 15, 1997, the firm and the NASD Regulation Inc. settled allegations that the firm violated MSRB Rule G-36 by failing to submit official statements and/or other documents to the MSRB. FUCMC agreed to a censure and payment of a fine in the amount of $10,000. In connection with an SEC investigation involving an unrelated third party, a current FUCMC employee (who formerly worked for the unrelated third party) has received a subpoena to provide information and has cooperated fully with that request. Neither FUCMC nor the employee is the subject of this investigation. FIRST UNION Capital Markets Corp. I I I I I I I I I I I I I I I . . I . - - I Proposal to Provide Investment Banking Services for the CITY OF WINTER SPRINGS, FLORIDA 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 REP. 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 describinf! the current status of such investif!ations or violations. From time to time, bank affiliates of First Union Capital Markets ("FUCMC"), as part of their relationship services, will refer potential customers to FUCMC to discuss the possibility of providing municipal securities business services or products to such customers. Under MSRB Rule G-38, such bank affiliates are considered consultants. If such services or products are ultimately provided by FUCMC, the affiliate bank making such referral may be compensated in such amount as is agreed to by FUCMC and such affiliate. At such affiliate bank's discretion, individual employees who were instrumental in making the referral may be paid some portion of such compensation. Credits toward this bonus may include, but are not limited to, referrals for public finance business such as this particular engagement. This arrangement with the bank affiliates in no way increases your cost of doing business with FUCMC. Therefore, in accordance with MSRB Rule G-38, we are notifying you that a bank consultant, an employee of First Union National Bank, has been engaged by FUCMC to provide referrals regarding Public Finance projects. FIRST UNION Capital Markets Corp. I I I I I I I I I I I I I I - - Proposal to Provide Investment Banking Services for the CITY OF WINTER SPRINGS, FLORIDA 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. To the best of our knowledge, there would be no conflicts with any of our current relationships that would result from FUCMC's selection as a member of the underwriting team for the City of Winter Springs, nor does FUCMC foresee any conflicts. FIRST UNION Capital Markets Corp. I I I I I I I I I I I I I - iiiiii - iii Proposal to Provide Investment Banking Services for the CITY OF WINTER SPRINGS, FLORIDA 11. Provide a list of five (5) references with a contact name, telephone number, and fax number for similar issues who may be contacted by the City. REFERENCES Palm Beach County, Florida Mr. John Long Debt Manager P.O. Box 1989 West Palm Beach, Florida 33402 (561) 355 - 2001 Fax: (561) 355 - 3990 City of Titusville, Florida Mr. Robert Lange Finance Director 555 South Washington Avenue P.O. Box 2806 Titusville, Florida 32796 (407) 269 - 4400 Fax (407) 383 - 5704 Seminole County, Florida Ms. Cindy Hill Director, OMB East First Street Sanford, Florida 32771 (407) 321 - 1130 Fax: (407) 330 - 9503 City of Bartow, Florida Mr. Joe De Legge City Manager 450 North Wilson Avenue Bartow, Florida 33830 (941) 534 - 0100 Fax (941) 534 - 0114 City of lake Wales, Florida Mr. David Greene City Manager 152 East Central Avenue Lake Wales, Florida 33859 (941) 678 - 4182 Fax (941) 678 - 4180 FIRST UNION Capital Markets Corp. I I I I I Proposal to Provide Investment Banking Services for the CITY OF WINTER SPRINGS, FLORIDA 12. In two (2) pages of less, please describe why your firm should be selected as either the Senior Manager or Co- manager to the City. Outstanding Quantitative Analysis I I I I I Experienced Bankers and Local Accessibility Diverse Access To Capital I I I I I Creative Financing Solutions . - FUCMC professionals have exceptional quantitative skills and extensive knowledge of tax law as it pertains to traditional and non-traditional financings. It is our knowledge and experience, (FUCMC and members of its financing team have worked on over $13 billion in advance refundings) in addition to our state-of-the-art computer programs, that have allowed us to provide our clients with innovative and customized solutions. The foundation of our approach is grounded in the investment banking products and services of FUCMC and the experience its bankers bring to the City. We recognize this engagement as an important opportunity to further evidence our commitment to the City. Our strength is predicated upon a belief that we offer a well-seasoned banking team with direct experience with Winter Springs' financing programs, over 50 years combined experience, innovative approaches, a strong pricing and distribution capability, and daily local accessibility to the necessary capital and resources. Many issuers are recognizing the benefits of including a major banking firm like FUCMC as part of their underwriting team. Osceola County, the City of Orlando, and the Greater Orlando Aviation Authority have included FUCMC on their underwriting team. This gives the City the ability to access capital through i) First Union National Bank, ii) the public and private debt markets, as well as iii) the private equity markets. No other underwriter can offer such diverse, in-house capabilities. First Union Capital Markets Corp. and First Union Corporation provide the City a unique specialized resource. We utilize a "best execution" approach to financing capital projects. Issuance of fixed rate, tax-exempt bonds may not be the most cost efficient financing vehicle for a particular project. At FUCMC, we offer: · Fixed and Variable Rate Loans · Fixed and Variable Rate Bonds · Permanent or Interim Loans · Commercial Paper · Bond Anticipation Notes · Letters of Credit · Lines of Credit · Interest Rate Hedging · Municipal Reinvestment · Flexible Escrows and Reserve Funds · Swaps, Swaptions, Interest Rate Caps, Floors and Collars FIRST UNION Capital Markets Corp. I I Proposal to Provide Investment Banking Services for the CITY OF WINTER SPRINGS, FLORIDA U nderwri ti ng and Distribution Capability I I I I I I I I I I I I I I - I - During 1998 FUCMC senior managed 384 issues nationwide for a total par value of over $5.77 billion. The foundation of our approach includes an institutional sales force of 91 professionals including six based in Florida that market both tax-exempt and taxable securities. With First Union Corporation's purchase of Wheat First Butcher Singer, a diversified financial services company currently servicing client assets in excess of $30 billion, we now have 1,700 brokers to serve both institutional and retail accounts. This is combined with our four fully staffed trading desks, including 34 municipal bond traders and underwriters and 22 variable rate trading and sales professionals. FUCMC also coordinates its marketing efforts with its affiliates, First Union Brokerage Services and First Union National Bank. FUBS is one of the largest bank-owned broker/dealers in the nation, with 300 registered brokers operating from 70 locations, including 125 brokers in the State of Florida, including 23 in Central Florida. These professionals provide our clients with not only an effective national distribution coverage, but a specific concentration in Florida as well. FIRST UNION Capital Markets Corp. I I I City of Winter Springs. Florida Improvement Refunding Revenue Bonds. Series 1999 Current Refunding of the Remaining Series 19B9 Bonds and $5 Million in New Money (Bank Qualified Scenario) I TOTAL ISSUE SOURCES AND USES Dated 04/01/1999 Delivered 04/01/1999 I Refunding New Money Issue Summary SOURCES OF FUNDS Par Amount of Bonds..................................... $2.735.000.00 $5.555.000.00 $B.290.000.00 Transfers from Prior Issue DSR Funds.. ...... ........ .... 46B.922.50 468.922.50 TOTAL SOURCES.......... . . . .......... ........ . ..... . ..... $3.203.922.50 $5,555.000.00 $8.758.922. 50 USES OF FUNDS Total Underwriter's Discount (0 . 555t) .. .. .. . . . . . .. . .. .. 15.179.25 30.830.25 46,009.50 Costs of Issuance....................................... 26,393.24 53.606.76 80.000.00 Gross Bond Insurance Premium ( 40.0 bp)..... ...... ...... 12.767.49 36.901. 50 49.668.99 Deposit to Debt Service Reserve Fund (DSRF)............. 214.199.33 435,055.67 649,255.00 Deposit to Project Construction Fund........... ......... 5.000.000.00 5.000.000.00 Deposit to Escrow Fund............. . . . . . . . . . .. . . . . . . . . . . 2,932.500.00 2.932.500.00 Roundi ng Amount. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,883.19 0.394.18) 1.489.01 TOTAL USES........... . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . .. . $3,203.922.50 $5.555.000.00 $8.758.922. 50 I I I I I I FIRST UNION Capital Markets Public Finance. WHW File = WINTERSP-99 Impt-Issue Summary 2/16/1999 5:34 PM I I I I I I - iiii Page 1 I I City of Winter Springs. Florida Improvement Refunding Revenue Bonds. Series 1999 Current Refunding of the Remaining Series 1989 Bonds I and $5 Million in New Money (Bank Qualified Scenario) DEBT SERVICE SCHEDULE Date Pri nci pa 1 Coupon Interest Total P+I 10/01/1999 235.000.00 3.000t 172.632.50 407.632.50 10/01/2000 310.000.00 3.100t 338.215.00 648.215.00 10/01/2001 320.000.00 3.300t 328,605.00 648.605.00 10/01/2002 330.000.00 3.500t 318,045.00 648.045.00 10/01/2003 340.000.00 3.600t 306.495.00 646.495.00 10/01/2004 355.000.00 3.700t 294.255.00 649.255.00 10/01/2005 365,000.00 3.800t 281.120.00 646.120.00 10/01/2006 380.000.00 3.900t 267,250.00 647.250.00 10/01/2007 370.000.00 4.000t 252.430.00 622,430.00 10/01/2008 385,000.00 4.050t 237.630.00 622.630.00 10/01/2009 400,000.00 4. 150t 222.037.50 622.037.50 10/01/2010 420.000.00 4.250t 205.437.50 625.437.50 10/01/2011 435.000.00 4.300t 187.587.50 622.587.50 10/01/2012 455.000.00 4.400t 168,882.50 623.882.50 10/01/2013 .475,000.00 4.450t 148.862.50 623.862.50 10/01/2014 495.000.00 4.500t 127.725.00 622.725.00 10/01/2015 515,000.00 4.750t 105.450.00 620,450.00 10/01/2016 540,000.00 4.750t 80,987.50 620,987.50 10/01/2017 570.000.00 4.750t 55,337.50 625.337.50 10/01/2018 595,000.00 4.750t 28.262.50 623.262.50 Total 8.290.000.00 4,127.247.50 12.417,247.50 I I I I I I I I I YIELD STATISTICS I Bond Year Dollars........................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Average Life.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Average Coupon.......... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $93.310.00 11. 256 Years 4.4231567t I Net Interest Cost (NIC)................................................. True Interest Cost (TIC).... ... ........ ... ... ... ........................ Bond Yi e 1 d for Arb; trage Purposes.......... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . All Inclusive Cost (AIC)................................................ 4. 4724649t 4. 4556627t 4. 4609459t 4. 6450157t I IRS FORM 8038 Net Interest Cost..... ............. ..... ................. .. ... .......... Wei ghted Average Maturi ty . . . . . . . . . . . ... . . . .. . . .. .. . . . . . .. . . .. .. . . . . . . . . . . 4.4231567t 11. 256 Years I FIRST UNION Capital Markets Public Finance' WHW File = WINTERSp.99 Impt.Issue Summary 2/16/1999 5:34 PM I I ii . Page 2 I I City of Winter Springs. Florida Improvement Refunding Revenue Bonds. Series 1999 Current Refunding of the Remaining Series 1989 Bonds and $5 Million in New Money (Bank Qualified Scenario) NET DEBT SERVICE SCHEDULE Date Pri nci pa 1 Coupon Interest T ota 1 P+I DSR Net New D/S 10/01/1999 235.000.00 3.000% 172.632.50 407.632.50 407.632.50 10/01/2000 310.000.00 3.100% 338.215.00 648.215.00 648,215.00 10/01/2001 320.000.00 3.300% 328.605.00 648.605.00 648.605.00 10/01/2002 330.000.00 3.500% 318.045.00 648.045.00 648.045.00 10/01/2003 340.000.00 3.600% 306.495. 00 646.495.00 646.495.00 10/01/2004 355.000.00 3.700% 294.255.00 649.255.00 649.255.00 10/01/2005 365.000.00 3.800% 281.120.00 646.120.00 646.120.00 10/01/2006 380.000.00 3.900% 267.250.00 647.250.00 647.250.00 10/01/2007 370.000.00 4.000% 252.430.00 622.430.00 622.430.00 10/01/2008 385.000.00 4.050% 237.630.00 622.630.00 622.630.00 10/01/2009 400.000.00 4. 150% 222.037.50 622.037.50 622.037.50 10/01/2010 420.000.00 4.250% 205.437.50 625.437.50 625.437.50 10/01/2011 435.000.00 4.300% 187.587.50 622.587.50 622.587.50 10/01/2012 455.000.00 4.400% 168.882.50 623.882.50 623.882.50 10/01/2013 475.000.00 4.450% 148.862.50 623.B62.50 623.862.50 10/01/2014 495.000.00 4.500% 127.725.00 622.725.00 622.725.00 10/01/2015 515.000.00 4.750% 105.450.00 620.450.00 620.450.00 10/01/2016 540.000.00 4.750% 80.987.50 620.987.50 620.987.50 10/01/2017 570.000.00 4.750% 55.337.50 625.337.50 625.337.50 10/01/2018 595.000.00 4.750% 28.262.50 623.262.50 (649.255.00) (25.992.50) Total 8.290.000.00 4.127.247.50 12.417.247.50 (649.255.00) 11.767.992.50 I I I I I I I I I FIRST UNION Capital Markets Public Finance - WHW File = WINTERSP-99 Impt.Issue Summary 2/16/1999 5:34 PM I I ... . I . . Page 3 I I I I City of Winter Springs. Florida ! . -. ( Improvement Refunding Revenue Bonds. Series 1999 Current Refunding of the Remaining Series 1989 Bonds and $5 Million in New Money (Bank Qualified Scenario) PRICING SUMMARY Maturity Type of Bond Coupon Yield Maturity Value Price Do 11 ar Pri ce 10/01/1999 Seri a 1 Coupon 3.000% 3.000% 235.000.00 100.000% 235.000.00 10/01/2000 Serial Coupon 3.100.t 3.100.t 310.000.00 100.000% 310.000.00 10/01/2001 Serial Coupon 3.300.t 3.300% 320.000.00 100.000.t 320.000.00 10/01/2002 Seri a 1 Coupon 3.500% 3.500% 330.000.00 100.000% 330.000.00 10/01/2003 Serial Coupon 3.600% 3.600% 340.000.00 100.000.\' 340.000.00 10/01/2004 Seri a 1 Coupon 3.700% 3.700.t 355.000.00 100.000.\' 355.000.00 10/01/2005 Serial Coupon 3.800% 3.BOO% 365.000.00 100.000% 365.000.00 10/01/2006 Serial Coupon 3.900% 3.900% 3BO.000.00 100.000% 380.000.00 10/01/2007 Seri a 1 Coupon 4.000% 4.000% 370.000.00 100.000% '370.000.00 10/01/200B Serial Coupon 4.050% 4.050% 3B5.000.00 100.000.\' 385.000.00 10/01/2009 Seri a 1 Coupon 4.150% 4. 150% 400.000.00 100.000% 400.000.00 10/01/2010 Serial Coupon 4. 250.t 4.250% 420.000.00 100.000% 420.000.00 10/01/2011 Serial Coupon 4.300.t 4.300% 435.000.00 100.000% 435.000.00 10/01/2012 Serial Coupon 4.400% 4.400% 455.000.00 100.000% 455.000.00 10/01/2013 Serial Coupon 4.450% 4.450% 475.000.00 100.000% 475.000.00 10/01/2014 Seri a 1 Coupon 4.500% 4.500% 495.000.00 100.000% 495.000.00 10/01/2018 Term 1 Coupon 4.750% 4.750% 2.220.000.00 100.000% 2.220.000.00 Total 8.290.000.00 8.290.000.00 I I I I I I I I BID INFORMATION I Par Amount of Bonds.. ............ ..... ........ . ..... Gross Production.................................... $8.290.000.00 $8.290.000.00 Total Underwriter's Discount (0.555.t).............. Bid (99.445%).............................. .......... $(46.009.50) 8.243.990.50 I I Total Purchase Price................................ $8.243.990.50 Bond Year Doll ars. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... Average Life..... . . . . . ; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Average Coupon...................................... $93.310.00 11.256 Years 4.4231567t J' I Net Interest Cost (NIC)............................. True Interest Cost (TIC)............................ 4.4724649% 4. 4556627t I FIRST UNION Capital Markets Public Finance' WHW File = WINTERSp.99 Impt-Issue Summary 2/16/1999 5:34 PM - - iiii ~ Page 4 I I I . I City of Winter Springs, Florida Improv~~ent Refunding Revenue Bonds, series 1999 Current Refunding Portion (Bank Qualified Scenario) PROJECT SUMMARY Delivered 04/01/1999 I Dated 04/01/1999 I SOURCES AND USES OF FUNDS I Par Amount of Bonds............,.,.,....""................. , . , Transfers from Prior Issue DSR Funds.,....,.,.........,."".... TOTAL SOURCES..........,."".."...........,................... I Total Underwriter's Discount (0.555%)....."............."".. Costs of Issuance.......".,..,.....""....,..............".,. Gross Bond Insurance Premium ( 40.0 bp)......................... Deposit to Debt Service Reserve Fund (DSRF).....,.,............. Deposi t to Current Refundi ng Fund............................... Roundi ng Amount. . , . . . . , , , , . . . . . . . . . . . , . . . . . . , . . . . . . . , . . . . . , . . . . . TOTAL USES............ . . . . . . . . . . . . , .. .. .. . , , , , . . . . . , , . . . . . . . . . . . I I FLOW OF FUNDS DETAIL I CURRENT REFUNDING ESCROW SOLUTION METHOD..,.........,.........,. Tota 1 Cost of Investments"""",...,.,............"".".,... TOTAL DRAWS..""".,.""",.,..............,......,.....,.,." I DEBT SERVICE RESERVE FUND SOLUTION METHOD....,.,......"..,..", Tota 1 Cost of Investments".........""..,..",....,."........ TOTAL DRAWS.......,.............."......,......,...........,... I PRESENT VALUE ANALYSIS SUMMARY (GROSS TO GROSS) I Gross PV Debt Service Savings....."",. ....,. .,. .....,., ,.'.... Transfers from Pri or Issue DSR Fund..,.......................... Amount deposited into new DSR Fund...........,.,................ NET PRESENT VALUE BENEFIT,...................,.................. NET PV BENEFIT / $2.875.000 REFUNDED PRINCIPAL,................ I BOND STATISTICS I Average Li fe. . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . Average Coupon. ,., , .. .... . . .. . ., ... . . . ...... , ....... , ., .. . . , , . . . I Net Interest Cost (NIC),......,....,..........".,."......,.". Bond Yield for Arbitrage Purposes......".....",.,........,.... True Interest Cost (TiC).................,......"............,. All Inclusive Cost (AIC),.............."......,...............: I $2.735.000.00 468,922.50 $3.203.922.50 15.179,25 26.393.24 12.767.49 214.199.33 2.932.500.00 2.883.19 $3,203.922.50 Net Funded $2.932.500.00 $2.932.500.00 Gross Funded $214.199.33 $214.199.33 568.066.16 (468.922.50) 214.199.33 $313,342.99 10,899% 4.500 Years 3.7121471% 3.8354804% 4.4609459% 3.8422787% 4,2043148'; FIRST UNION Capital Markets Public Finance. WHW File = WINTERSp.99 Impt.Refunding 2/16/1999 5:35 PM I Page 5 I I I I City of Winter Springs. Florida Improvement Refunding Revenue Bonds. Series 1999 Current Refunding Portion (Bank Qualified Scenario) DEBT SERVICE SCHEDULE I Date Pri nci pa 1 Coupon Interest Total P+I 10/01/1999 235,000.00 3.000% 48.532.50 2B3.532.50 10/01/2000 305.000.00 3.100% 90.015.00 395.015.00 10/01/2001 315.000.00 3.300% BO.560.00 395.560.00 10/01/2002 320.000.00 3.500% 70.165.00 390.165.00 10/01/2003 330,000.00 . 3.600% 5B.965.00 3BB,965.00 10/01/2004 345,000.00 3.700% 47.0B5.00 392,OB5.00 10/01/2005 355,000.00 3.BOO% 34.320.00 389.320.00 10/01/2006 370.000.00 3.900% 20.830.00 390.830.00 10/01/2007 160,000.00 4.000% 6.400.00 166.400.00 Total 2.735,000.00 456.B72.50 3.191,872.50 YIELD STATISTICS I I I I Bond Year Dollars........................................................ Average Li fe. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Average Coupon............... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,307.50 4.500 Years 3.7121471% I Net Interest Cost (NIC).................................................. True Interest Cost (TIC)................................................. Bond Yield for Arbitrage Purposes........................................ All Inclusive Cost (AIC)................................................. 3.B354804% 3.B4227B7% 4.4609459% 4.2043148% I I IRS FORM 8038 Net Interest Cost... ........... ...... ........................ ........... . Wei ghted Average Maturi ty . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . .. . . . . . . 3.7121471% 4.500 Years I I FIRST UNION Capital Markets Public Finance' WHW File c WINTERSp.99 Impt.Refunding 2/16/1999 5:35 PM .~ . I I Page 6 I I i , City of Winter Springs. Florida . I i Improvement Refunding Revenue Bonds. series 1999 I Current Refunding Portion (Bank Qualified Scenario) NET DEBT SERVICE SCHEDULE Date Pri nci pa 1 Coupon Interest Total P+I DSR Net New D/S I 10/0111999 235.000.00 3.000t 48.532.50 283.532.50 283,532.50 10/0112000 305,000.00 3.100.t 90.015.00 395,015.00 395,015.00 10/0112001 315.000.00 3.300t 80.560.00 395.560.00 395.560.00 10/0112002 320.000.00 3.500t 70,165.00 390.165.00 390.165.00 10/01/2003 330.000.00 3.600.t 58,965.00 388,965.00 388,965.00 10/0112004 345.000.00 3.700t 47,085.00 392,085.00 392.085.00 10/01/2005 355.000.00 3.800t 34,320.00 389.320.00 389,320,00 10/0112006 370,000.00 3.900t 20.830.00 390.830.00 390,830.00 10/0112007 160,000.00 4.000t 6.400.00 166.400.00 166.400.00 10/0112008 10/0112009 - 10/0112010 - 10/01/2011 10/01/2012 10/01/2013 10/01/2014 10/0112015 - - 10/01/2016 10/01/2017 10/01/2018 (214.199.33) (214.199.33) Total 2,735.000.00 - 456.872.50 3.191.872,50 (214,199.33) 2.977,673.17 I I I I I I I I I FIRST UNION Capital Markets Public Finance - WHW File = WINTERSp.99 Impt-Refunding 2/16/1999 5:35 PM I I I I I I I Page 7 . I I City of Winter Springs. Florida Improvement Refunding Revenue Bonds. Series 1999 Current Refunding Portion (Bank Qualified Scenario) GROSS DEBT SERVICE COMPARISON Date Principal Coupon Interest NEW D/S OLD D/S Savings 10/01/1999 235.000.00 3.000.t 48.532.50 283.532.50 361.075.00 77.542.50 10/01/2000 305.000.00 3.100.t 90.015.00 395.015.00 468.790.00 73.775.00 10/01/2001 315,000.00 3.300.t 80.560.00 395.560.00 468.852.50 73.292.50 10/01/2002 320.000.00 3.500.t 70.165.00 390.165.00 467.022.50 76.857.50 10/01/2003 330.000.00 3.600.t 58.965.00 388.965.00 463.712.50 74.747.50 10/01/2004 345.000.00 3.700.t . 47. 085 . 00 392.085.00 468.922.50 76.837.50 10/01/2005 355.000.00 3.800.t 34.320.00 389.320.00 466.912.50 77.592.50 10/01/2006 370.000.00 3.900.t 20.830.00 390.830.00 468.052.50 77.222.50 10/01/2007 160.000.00 4.000.t 6.400.00 166.400. 00 241.762.50 75.362.50 Total 2.735.000.00 456.872.50 3.191.872.50 3.875.102.50 683.230.00 I I I I I I PRESENT VALUE ANALYSIS SUMMARY (GROSS TO GROSS) I Gross PV Debt Servi ce Savi ngs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . Transfers from Prior Issue DSR Fund............................................. Amount deposited into new DSR Fund.............................................. 568.066.16 (468.922.50) 214.199.33 NET PRESENT VALUE BENEFIT....................................................... $313,342.99 I NET PV BENEFIT / $2.875.000 REFUNDED PRINCIPAL... .......... .................... 10.899.t I FIRST UNION Capital Markets Public Finance - WHW File = WINTERSP-99 Impt-Refunding 2/16/1999 5:35 PM I I I . Page 8 I I City of Winter Springs. Florida I I Improvement Refunding Revenue Bonds. Series 1999 Current Refunding Portion I (Bank Qualified Scenario) I PRICING SUMMARY Maturity Type of Bond Coupon Yield Maturity Value Price Do 11 ar Pri ce 10/01/1999 Seri al Coupon 3.000t 3.000t 235.000.00 100.000t 235.000.00 10/01/2000 Serial Coupon 3.100t 3.100t 305.000.00 100.000t 305.000.00 10/01/2001 Seri a 1 Coupon 3.300t 3.300t 315.000.00 100.000t 315.000.00 10/01/2002 Seri a 1 Coupon 3.500t 3.500t 320.000.00 100.000t 320.000.00 10/01/2003 Seri a 1 Coupon 3.600t 3.600t 330.000.00 100.000t 330.000.00 10/01/2004 Seri a 1 Coupon 3.700t 3.700t 345.000.00 100.000t 345.000.00 10/01/2005 Seri a 1 Coupon 3.800t 3.800t 355.000.00 100.000t 355.000.00 , 10/01/2006 Seri a 1 Coupon 3.900t 3.900t 370,000.00 100.000t 370.000.00 10/01/2007 Seri a 1 Coupon 4.000t 4.000t 160,000.00 100.000t 160.000.00 Total 2.735.000.00 2.735.000.00 I I I I I I BID INFORMATION Par Amount of Bonds...... . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross Production.................................... $2.735.000.00 $2.735,000.00 I Total Underwriter's Discount (0.555t)... ........... Bid (99.445t)....................................... $(15.179.25) 2.719.820.75 I Total Purchase Price.... . . ......... ......... ........ $2.719.820.75 I Bond Year Dollars................................... Average Life........................................ Average Coupon. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,307.50 4.500 Years 3.712147U I Net Interest Cost (NIC)............................. True Interest Cost <TIC)............................ 3.B354804t 3.B422787.t I FIRST UNION Capital Markets Public Finance. WHW File = WINTERSp.99 Impt.Refunding 2/16/1999 5:35 PM I I - Page 9 I I City of Winter Springs. Florida I Improvement Refunding Revenue Bonds. Series 1999 I Current Refunding Portion (Bank Qualified Scenario) CURRENT REFUNDING ESCROW Date Rate Receipts Disbursements Cash Balance 4/01/1999 2.932.500.00 2.932.500.00 Total 2.932.500.00 2.932.500.00 I I I INVESTMENT PARAMETERS I Investment Model [PV. GIC. or Securities]. .............. . ............... Default investment yield target................... ....................... Securities Bond Yield I Cash Depos it. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Cost of Investments............................................... 2.932.500.00 $2.932.500.00 I Target Cost of Investments at bond yield. ....... ... ................. .... $2.932.500.00 I Yi e 1 d to Recei pt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yi e 1 d for Arbi trage Purposes............................................ 4.4609459% I FIRST UNION Capital Markets Public Finance - WHW File = WINTERSP.99 Impt-Refunding 2/16/1999 5:35 PM I I I I - !!!! Page 10 I I I City of Winter Springs. Florida Improvement Refunding Revenue Bonds. Series 1989 I TOTAL REFUNDED DEBT SERVICE Date Pri nci pa 1 Coupon Interest Total P+I 10/01/1999 255.000.00 7.200t 106.075.00 361.075.00 10/01/2000 275.000.00 7.250t 193.790.00 468.790.00 10/01/2001 295.000.00 7.400t 173.852.50 468.852.50 10/01/2002 315.000.00 7.400t 152.022.50 467.022.50 10/01/2003 335.000.00 7.400t 128.712.50 463.712.50 10/01/2004 365.000.00 7.400t 103.922.50 468.922.50 10/01/2005 390.000.00 7.400t 76.912.50 466.912.50 10/01/2006 420.000.00 7.450t 48.052.50 468.052.50 10/01/2007 225.000.00 7.450t 16.762.50 241.762.50 Total 2.875.000.00 1.000.102.50 3.875.102.50 YIELD STATISTICS I I I I Average Life............................................................. Weighted Average Maturity (Par Basi s). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Average Coupon................................... . . . . . . . . . . . . . . . . . . . . . . . . 4.693 Years 4.693 Years 7. 4122846t I - . - - FIRST UNION Capital Markets Public Finance. WHW File = WINTERSp.89 Impt-SINGLE PURPOSE 2/16/1999 5:35 PM - .J' . Page 11 I I I City of Winter Springs. Florida Improvement Refunding Revenue Bonds. Series 1999 New Money Portion Bank Qualifed Scenario PROJECT SUMMARY I Delivered 04/01/1999 Dated 04/01/1999 I SOURCES AND USES OF FUNDS I Par Amount of Bonds...... . ... .. .. . ...... .................. TOTAL SOURCES............................................. I Total Underwriter's Discount (0.555t).................... Costs of Issuance......................................... Gross Bond Insurance Premium ( 40.0 bp). ............ ...... Deposit to Debt Service Reserve Fund (DSRF)............... Deposit to Project Construction Fund...................... Round i ng Amount. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TOTAL USES........... ...... . ...... ........................ I I FLOW OF FUNDS DETAIL I PROJECT CONSTRUCTION FUND SOLUTION METHOD................. Total Cost of Investments................................. TOTAL DRAWS............................................... I DEBT SERVICE RESERVE FUND SOLUTION METHOD................. Total Cost of Investments................................. TOTAL DRAWS.. ............................................. I BOND STATISTICS Average Li fe. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Average Coupon.................. . . . . . . ... . . .. . . . ... . . .. .. . I 11II Net Interest Cost (NIC)................................... Bond Yield for Arbitrage Purposes......................... True Interest Co~t erIC).................................. All Inclusive Cost (AIC).................................. - - - iiiii $5.555.000.00 $5.555.000.00 30.830.25 53.606.76 36.901.50 435.055.67 5.000.000.00 0,394.18) $5.555,000.00 Net Funded $5.000.000.00 $5.000.000.00 Gross Funded $435.055.67 $435.055.67 ' 14.582 Years 4. 5311873t 4.5692482% 4.4609459t 4. 5686530t 4. 7268082t ,;, FIRST UNION Capital Markets Public Finance. WHW File = WINTERSp.99 Impt.New Money 2/16/1999 5:35 PM Page 12 I I I City of Winter Springs. Florida Improvement Refunding Revenue Bonds. Series 1999 New Money Portion Bank Qualifed Scenario DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P+I 10/01/1999 124.100.00 124.100.00 10/01/2000 5.000.00 3.100% 248.200.00 253.200.00 10/01/2001 5.000.00 3.300% 248.045.00 253.045.00 10/01/2002 10.000.00 3.500% 247.8BO.00 257.880.00 10/01/2003 10.000.00 3.600% 247.530.00 257.530.00 10/01/2004 10.000.00 3.700% -247.170.00 257.170.00 10/01/2005 10.000.00 3.800% 246.800.00 256.800.00 10/01/2006 10.000.00 3.900% 246.420.00 256.420.00 10/01/2007 210.000.00 4.000% 246.030.00 456.030.00 10/o1/2ooB 385.000.00 4.050% 237.630.00 622.630.00 10/01/2009 400.000.00 4.150% 222.037.50 622.037.50 10/01/2010 420.000.00 4.250% 205.437.50 625.437.50 10/01/2011 435.000.00 4.300% 187.587.50 622.587.50 10/01/2012 455.000.00 4.400% 168.882.50 623.882.50 10/01/2013 475.000.00 4.450% 148.862.50 623.862.50 10/01/2014 495.000.00 4.500% 127.725.00 622 .725 . 00 10/01/2015 515.000.00 4.750% 105.450.00 620.450.00 10/01/2016 540.000.00 4.750% 8o.9B7.5o 620.987.50 10/01/2017 570.000.00 4.750% 55.337.50 625.337.50 10/01/2018 595.000.00 4.750% 28.262.50 623.262.50 Total 5.555.000.00 3.670.375.00 9.225.375.00 YIELD STATISTICS I I I I I I I I Bond Year Dollars........................................................ Average Life... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Average Coupon.......... . . . . . . .. . . . . . . . . . . . . . . .. . .... .. . . ... ... . . . .. . . . . . $81,002.50 14.582 Years 4.5311873% I I Net Interest Cost (NIC).................................................. True Interest Cost (TIC)................................................. Bond Yield for Arbitrage Purposes........................................ All Inclusive Cost (AIC)................................................. 4.5692482% 4.5686530% 4. 4609459,t 4. 7268082.t I IRS FORM 8038 Net Interest Cost...... . ...................... ........................... Wei ghted Average Maturi ty. . . . . . . . . .. .. .. . . . . . . . . . . .. . . . . . . . . .. . . . .. .. . . . . 4. 5311873,t 14.582 Years I FIRST UNION Capital Markets Public Finance. WHW File = WINTERSp.99 Impt.New Money 2/16/1999 5:35 PM I I I Page 13 - . - I I I I I City of Winter Springs. Florida Improvement Refunding Revenue Bonds. Series 1999 New Honey Portion Bank Qualifed Scenario NET DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P+I DSR Net New D/S 10/01/1999 124.100.00 124,100.00 124,100.00 10/01/2000 5,000.00 3. lOOt 248,200.00 253.200.00 253,200.00 10/01/2001 5,000.00 3.300t 248.045.00 253,045.00 253.045.00 10/01/2002 10.000.00 3.500t 247,880.00 257,880.00 257,880.00 10/01/2003 10,000.00 3.600t 247,530.00 257.530.00 257,530.00 10/01/2004 10,000.00 3.700.\' 247.170.00 257.170.00 - 257,170.00 10/01/2005 10,000.00 3.800t 246.800.00 256.800.00 256.800.00 10/01/2006 10.000.00 3.900t 246,420.00 256,420.00 256.420.00 10/01/2007 210,000.00 4.000t 246,030.00 456,030.00 456,030.00 10/01/2008 385,000.00 4.050t 237,630.00 622.630.00 622.630.00 10/01/2009 400,000.00 4. 150.\' 222.037.50 622.037.50 622.037.50 10/01/2010 420.000.00 4.250t 205.437.50 625,437.50 625.437.50 10/01/2011 435,000.00 4.300t 187,587.50 622,587.50 622.587.50 10/01/2012 455.000.00 4 AOO.\' 168,882.50 623.882.50 623,882.50 10/01/2013 475,000.00 4.450.\' 148,862.50 623,862.50 623,862.50 10/01/2014 495,000.00 4.500t 127,725.00 622.725.00 622.725.00 10/01/2015 515,000.00 4.750t 105.450.00 620.450.00 620.450.00 10/01/2016 540,000.00 4.750t 80.987.50 620.987.50 620.987.50 10/01/2017 570.000.00 4.750.\' 55,337.50 625,337.50 625,337.50 10/01/2018 595.000.00 4.750t 28,262.50 623,262.50 (435,055:67) 188,206.83 Total 5,555,000.00 3.670,375.00 9.225,375.00 (435.055.67) 8.790,319.33 I I I I I I FIRST UNION Capital Harkets Public Finance - WHW File = WINTERSP-99 Impt-New Honey 2/16/1999 5:35 PH I I I I I I i' I - Page 14 I I I City of Winter Springs, Florida Improvement Refunding Revenue Bonds, Series 1999 New Money Portion Bank Qualifed Scenario PRICING SUMMARY Maturity Type of Bond Coupon Yield Maturity Value Price Do 11 ar Pri ce 10/01/2000 Serial Coupon 3.100% 3.100% 5,000.00 100.000% 5.000.00 10/01/2001 Serial Coupon 3.300% 3.300% 5.000.00 100.000% 5.000.00 10/01/2002 Seri a 1 Coupon 3.500% 3.500% 10.000.00 100.000% 10.000.00 10/01/2003 Seri a 1 Coupon 3.600% 3.600% 10.000.00 100.000% 10,000.00 10/01/2004 Seri a 1 Coupon 3.700% 3.700% 10.000.00 100.000% 10.000.00 10/01/2005 Serial Coupon 3.800% 3.800% 10,000.00 100.000% 10.000.00 10/01/2006 Serial Coupon 3.900% 3.900% 10,000.00 100.000% 10.000.00 10/01/2007 Serial Coupon 4.000% 4.000% 210.000.00 100.000% 210,000.00 10/01/2008 Seri a 1 Coupon 4.050% 4.050% 385,000.00 100.000% 385.000.00 10/01/2009 Seri a 1 Coupon 4.150% 4.150% 400,000.00 100.000% 400.000.00 10/01/2010 Serial Coupon 4.250% 4.250% 420,000.00 100.000% 420.000.00 10/01/2011 Serial Coupon 4.300% 4.300% 435.000.00 100.000% 435,000.00 10/01/2012 Seri al Coupon 4.400% 4.400% 455.000.00 100.000% 455,000.00 10/01/2013 Seri a 1 Coupon 4.450% 4.450% 475.000.00 100.000% 475.000.00 10/01/2014 Serial Coupon 4.500% 4.500% 495.000.00 100.000% 495.000.00 10/01/2018 Term 1 Coupon 4.750% 4.750% 2.220.000.00 100.000% 2.220.000.00 Total . 5,555.000.00 5.555,000.00 I I I I I I I BID INFORMATION I Par Amount of Bonds................................. $5.555.000.00 Gross Production.................................... $5.555.000.00 I Total Underwriter's Discount (0.555%).............. $(30.830'.25) Bi d (99.445%)....................................... 5.524,169.75 I I Tota 1 Purchase Pri ce. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.524.169.75 Bond Year Dollars................................... Average L; fe. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Average Coupon. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $81. 002 . 50 14.582 Years 4.5311873% Net Interest Cost (NIC)............................. True Interest Cost (TIC)............................ 4.5692482% 4.5686530% .1" I FIRST UNION Capital Markets Public Finance. WHW File = WINTERSp.99 Impt.New Money 2/16/1999 5:35 PM I - - Page 15 I I City of Winter Springs. Florida Improvement Refunding Revenue Bonds. Series 1999 New Money Portion Bank Qualifed Scenario OPERATION OF PROJECT CONSTRUCTION FUND Date Pri nci pa 1 Rate Receipts Disbursements Cash Balance 4/01/1999 5.000.000.00 5.000.000.00 5,000.000.00 Total 5,000,000.00 5.000.000.00 5.000.000.00 I I I I INVESTMENT PARAMETERS Investment Hodel [PV, GIC. or Securities]............... ................ Default investment yield target........................................ . GIC User Defined I Cost of Investments Purchased with Bond Proceeds........................ Total Cost of Investments............................................... 5.000.000.00 $5.000.000.00 I Target Cost of Investments at bond yield............................. ... $5.000,000.00 I Vi e 1 d to Recei pt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vi e 1 d for Arbi trage Purposes............................................ 4.4609459t I FIRST UNION Capital Markets Public Finance - WHW File = WINTERSp.99 Impt-New Money 2/16/1999 5:35 PM I I I J'. I . . - Page 16