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Home My WebLink About2001 12 10 Informational C Water Sewer 1992 Bond Refunding COMMISSION AGENDA ITEM C CONSENT INFORMATIONAL xx PUBLIC HEARING REGULAR ne{'emher 10, 2001 Meeting MGRPJ-1 /DEPT ~-:+-- A nthori7.ation REQUEST: The City Manager requesting the Commission to review an update on the Water and Sewer 1992 Bond Refunding prepared by the City's Financial Advisor. PURPOSE: The purpose of this Agenda Item is to update the Commission on the status of the 1992 Water and Sewer Bond Refunding. CONSIDERATIONS: A representative from Public Financial Management (our Financial Advisors) will be here to review the update memo and provide a pricing book for distribution. ATTACHMENTS: Memo from David Moore, City Financial Advisor with Public Financial Management. RECOMMENDATION: N/A COMMISSION ACTION: l)ecenaber4,2001 Memorandum To: Louise Frangoul From: I)avid Moore Re: Water and Sewer Refunding Summary The City has previously approved refunding the City's Water and Sewer Revenue Bonds, Series 1992 (the "1992 Bonds"). Since the 1992 Bonds cannot be refunded prior Janucuy of 2002, the City's financial advisor has monitored the refunding opportunity for a number of months. Interest rates have decreased in recent months to the point where the City's fmancial advisor recormnended the City sell the refunding bonds on Tuesday, I)ecember 4,2001. The City's underwriter for this transaction, Williana R Hough & Co. marketed the bonds on the naorning of the 4th and offered to purchase the bonds early in the afternoon. The refunding resulted in present value savings of just over $1,000,000 and annual savings in excess of $84,000. The results of this refunding and the prior refunding of the City's Water and Sewer Revenue Bonds, Series 1991 are summarized below. Series 2001 Series 2002 Combined Par Amount $6,065,000 $13,980,000 $20,045,000 Total Savings 1,137,921 1,522,835 2,660,756 PV Savings 732,000 1,003,319 1,735,319 Average Annual Savings 56,895 84,602 141,497 Percent Savings 12.67% 7.22% 8.82% The conabined refundings will reduce the annual debt service payments in the utility systena by over $140,000. ----------------_._- l..ll i'::)( .) { "+kr--A~\ () vY lA.~ ~~~J \. \ ~ If ~ r-?-116!o I I, l i t -. i ---l City of Winter Springs, Florida Financial Advisor's Memorandum Water and Sewer Refunding Revenue Bonds, Series 2002 -------. Ij-'-'-- December 10, 2001 .......- .-- presented by :II PFIVI Public Financial Management Suite 720 ,==_ 201 South Orange Avenue: -.==- Orlando, FL 32801-3470 -- 407 648-2208 407 648-1323 fax I I ..-==- :Ill PFM _ Public Financial Management -- - Financial and Investment Advisors Suite 720 201 South Orange Avenue Orlando. FL 32801-3470 407 648-2208 407 648-1323 fax www.pfm.com I I I December 5, 2001 I Mr. Ronald McLemore Ci ty Manager City of Winter Springs 1126 East S.R. 434 Winter Springs, FL 32708 I I Mr. McLemore: I As independent financial advisor to the City of Winter Springs, Florida (the "City"), Public Financial Management, Inc. ("PFM") is pleased to provide its opinion as to the fairness and appropriateness to the City of the issuance of its $13,980,000 Water and Sewer Refunding Revenue Bonds, Series 2002 (the "Series 2002 Bonds"). The Series 2002 Bonds are being issued for the purpose of currently refunding the outstanding Series 1992 parity bonds and paying costs of issuance of the Series 2002 Bonds. I I You have requested our recommendation regarding the Bond Purchase Agreement presented to the City by William R. Hough & Co. on behalf of itself, Hanifen Imhoff, and Gardnyr Michael Capital, Inc. (collectively the "Underwriters"). I I To prepare for the pricing of the Series 2002 Bonds, PFM analyzed interest rates and underwriting spreads of comparable issues in the Florida and national municipal markets. As part of our ongoing involvement in the municipal debt market, we have closely followed the recent trends of interest rates, municipal debt offerings and inventory, and other matters that may affect tax- exempt issues. In addition, PFM has compared previous City of Winter Springs bond issues to national indices of tax-exempt interest rates in order evaluate the relative appropriateness of the Series 2002 Bonds. I I Based on the foregoing and our knowledge and experience in the issuance of tax-exempt debt, it is Public Financial Management's opinion that the coupon rates, yields and underwriting spread, all of which constitute the pricing of the Series 2002 Bonds, are fair and appropriate for the City. The financing resulted in a true interest cost (TIC) of 4.7480769% and a gross underwriting spread of $82,426.85. The net present value savings are $1,003,201.90 or 7.22% of the refunded bonds par amount. The final maturity of the Series 2002 Bonds is April 1, 2020. As indicated herein, the financing meets or exceeds the terms and conditions prescribed in the Resolution. I I I I I I I I I I I I I I I I I I I I I I I City of Winter Springs, Florida December 5, 2001 Page 2 Therefore, PFM's recommendation is that the City accept the terms of the sale of the Series 2002 Bonds as set forth in the Bond Purchase Agreement and award the Series 2002 Bonds to the Underwriters. PFM appreciates having this opportunity to work with the City and its staff, and we look forward to assisting the City in the future. Sincerely, PUBLIC FINANCIAL MANAGEMENT, INe. ~/#~ David M. Moore Senior Managing Consultant ----------------_._- 1 City of Winter Springs, Florida ________ _~~~~~~y ~f Wa~e_r and Sewer Refunding Bonds c~~ I ~() · Issued to currently refund Water and Sewer Refunding Revenue Bonds, Series 1992 '. Maturities being refunded-Serial Bonds maturing 2002 through 2008 and Term Bonds maturing 2012 and 2020 · Annual debt service payments made by the utility system were decreased by over $140,000 by the Series 2001 and 2002 refundings. Series 2001 Series 2002 Combined Par Amount $6,065,000 $13,980,000 $20,045,000 Total Savings 1,137,921 1,522,835 2,660,756 PV Savings 732,000 1,003,319 1,735,319 A verage Annual Savings 56,895 84,602 141,497 Percent Savings 12.67% 7.22% 8.820/0 ..:==- aPH1 1 -- ~=- --~---------------- Market Conditions for Sale - Historical Yields · Rates are near historic lows and lower than all but 1998 lows. Ten Year Comparison oC10 and 30 Year Treasuries and Bond Buyer Revenue Bond Index 9.000 8.000 7.000 6.000 5.000 4.000 3.000 ~o/~o/~~~~~~~~~~~~~~~~~~~~~~~~~~~~000 ~~~~~~~~~~~~~~~~~~~~~~&~~~~~~~~~~~~ ~~~~~~~~~~~&~~~~~~&~~~~~~ij&~~~~~ij~~ - 10- Year TSY -30-YcarTSY 25 REV Bond A=- Ii.?F1\{ : 2 -- , ~- - - - I j . - - - -- - - - - - - - - - - - Market Conditions for Sale - Historical Yields Two Year Comparison of the 10 and 30 Year Treasuries and Bond Buyer Revenue Bond Index 7.000 6.500 6.000 5.500 M I '~- 5.000 4.500 4,000 3.500 3.000 , ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ,~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ,ry\"'\ ,\",\V ry\"'\V ",\",\ b<,\"'\V "J\"'\ ~\",\ "\,,,\ <:0\"'\ <4\"'\ ,~\",\ "\,,,\ ,ry\"'\ ,\",\ ry\"'\ ",\"'\'0' b<,\"'\ "J\"'\ b\"'\ "\,,,\ <:0\"'\ <4\"'\'0' ,~\",\"\,,,\ -lO-Year TSY - 30- Year TSY 25 REV Bond 4F- = PE\l ~= -- "'IIII!!!!=- !3 i --~---------------- I i I Market Conditions for Sale - Visible Supply . Heavy supply can put pressure on new issues. Supply is not expected to improve (decline) over ,the next month as issuers continue to borrow money at historically low rates. . 14,000 12,000 4,000 10,000 8,000 CJl C ~ :i .,. 6,000 o , ~C) Rl Rl Rl 'iSJ ~ '" ~ Rl Rl ~ ~ Rl~ ~, Rl' Rl' Rl' ~" ~, Rl' ~, Rl' Rl' ~, \~###~#~#####\~~\~~~~~~~~~~ 0\ \~\ 0\ N N \~\ 0\ ~\ 0\ 0\ 0\ 0\ 0\ 0\ 0\ 0\ 0\ 0\ 0\ 0\ 0\ 0\ 0\ 0\ ,"-' , f1" ~\ ~\ '-"J\ l.:> '\ 'b C) ,~ " ,"-', ' f1" ~ ~ '-"J l.:> '\ 'b C) ,'0 " o Competitive [J NegotiatClI' .c=- = PFl\1 ~= !4 ~- - - Pricing Performance ~- I - J i I I - - - - - - - - - - - - - - - - Despite the recent widening in credit spreads, the City of Winter Springs' Water and Sewer Refunding Bonds priced comparable to the major indices. DelphisIMMD Yield Comparison ISSller Type of Issue Par Amolllll Rating Insurer City of Winter Springs, Florida Water and Sewer System Refunding Bonds, Series 2002 13,980,000 S&P AAA and Fitch AAA MBIA Negotiated Call ProvisiollS Dated Date Sale Date Delivery Date Gross Spread Takedoll'n 4/1/11 @ Par 15-Nov-2001 4-Dec-200 I 9-Jan-200 I $5.90 $4.44 Sale Type Spread to Delphis Estimated Delphis a Key indicator for comparison of pricing performance. 0,058 96.26 Spread to MMD AAA - ....- Delphis Comparison MMD Comparison Bond Delphis Scales Spread to MMD AAA Spread to Date Princinal Yield 100 98 98 Scale MMD AAA I-Apr-2003 550.000 2.450 2.350 2.410 0.040 2.350 0.100 I-Apr-2004 565.000 2,870 2.750 2.810 0.060 2.770 0.100 I-Apr-2005 585.000 3,220 3.100 3.160 0.060 3.120 0.100 1- Apr -2006 605.000 3.500 3.380 3.440 0.060 3.400 0.100 I-Apr-2007 620.000 3.760 3.650 3.720 0.040 3.660 0.100 I-Apr-2008 650.000 4.000 3.880 3.950 0.050 3.880 0.120 I-Apr-2009 675.000 4.100 4.000 4.070 0.030 4.000 0.100 I-Apr-2010 700,000 4.220 4.100 4.170 0.050 4.100 0.120 I-Apr-2011 725,000 4.330 4.200 4.270 0.060 4,200 0.130 I-Apr-2012 760.000 4.460 4.320 4.390 0.070 4.320 0.140 I-Apr-2013 795,000 4.580 4.450 4,520 0.060 4.430 0.150 I-Apr-2014 830.000 4.680 4.550 4.620 0.060 4.530 0.150 I-Apr-2015 865.000 4.810 4.640 4.710 0.100 4.620 0.190 I-Apr-2016 910.000 4.810 4.720 4.790 0.020 4.710 0.100 I-Apr-2017 965,000 5,050 4.830 4.900 0.150 4.790 0.260 I-Apr-2018 1,010.000 5.050 4.900 4.970 0.080 4.870 0.180 I-Apr-20 19 1,060.000 5.050 4.950 5.010 0.040 4.920 0.130 I-Apr-2020 1.110.000 5.050 4,990 5.050 4,960 0.090 -- -- .::= PE\1 .5 BYlVA Y 13,980.000 4.673 4.548 4.615 4.530 ==- -- -- -- ~=- - - - I - - - - - - - - - - -, - - - - - Pricing Performance - Series 2001 Refunding Delphis/MMD Yield Comparison Issl/er City of Winter Springs. Florida Call Provisiol/s lOll/II @ Par n'pe of Issl/e Water and Sewer System Refunding Bonds. Series 2001 DUled DUle I-Jul-2001 Par Amol/I/I 6.065.000 Sale Dale II-Jut-2001 Ralillg S&P AAA and Fitch AAA Delil'ery Dale I-Aug-200 t II/sl/rer MBIA Gross Spread $6.63 Sale Type Negotiated Takedoll'l/ $4.49 Spread /(I Delphis 0,016 Spread /0 MMD AAA 6 ESlimaled Delphis 97.43 Delohis Comoarison MMD Comoarison BOl/d Delphis Sc:ules SpreeuJ /0 MMDMA Spread 10 DCl/e Princil1C11 Yield 100 98 98 Scale MMDAAA t -Oct-2002 200.000 2.900 2.650 2.700 0.200 2.630 0.270 I-Oct-20m 200.000 3.150 3.050 3.100 0,050 3.090 0.060 I-Oct-2004 215.000 3.430 3.350 3.410 0,020 3.380 0,050 I-Oct-2oo5 225.000 3.610 3.550 3.600 0.010 3.570 0.040 I-Oct-2oo6 230.000 3.760 3.700 3,750 0.010 3.720 0,040 I-Oct-2007 240.000 3.940 3.880 3.930 0.010 3.900 0,040 I-Oct-2008 255.000 4.080 4.010 4.060 0.020 4.060 0,020 I-Oct-2oo9 255.000 4.200 4,130 4.180 0.020 4.180 0,020 I-Oct-2010 270.000 4.300 4.270 4.330 (0.030) 4.280 0,020 t-Oct-2011 275.000 4.400 4.370 4.430 (0.030) 4380 0,020 I-Oct-2012 300.000 4.550 4.460 4.510 0.040 4,510 0,040 I-Oct-2013 310.000 4.650 4,580 4.630 0.020 4.610 0,040 I-Oct-2014 320,000 4.750 4.680 4.730 0.020 4,710 0,040 I-Oct-2015 345.000 4.860 4.780 4.830 0.030 4,810 0,050 I-Oct-2016 355.000 4.930 4.850 4.900 0.030 4.880 0,050 I-Oct-2017 375.000 4.980 4.910 4.960 0.020 4,940 0.040 I-Oct-2018 390.000 5.030 4.960 5.010 0.020 4,990 0.040 I-Oct-2019 415.000 5.070 5.000 5.060 0.010 5,030 0,040 I-Oct-2020 435.000 5.100 5.030 5.090 0.010 5,060 0.040 I-Oct-2021 455.000 5.120 5.050 5.110 0.010 5.080 0.040 BYWAY 6.065.000 4.784 4.715 4,769 4,744 .......=- IPDI i 6 -- """!!!- - - - i 1 - - - - - - - - - - - - , Recent Comparables DelphislMMD Yield Comparison Issuer Sale Type City of St. Cloud, Florida Utility System Revenue Bonds, Series 2001 18.650,000 Moody's Aa2 and Fitch AA Ambac Negotiated Call Provisions Dated Dale Sale Date Delivery Date 8/1120 I I @ 100% I-Nov-2001 28-Nov-200 I 12-Dec-2001 Type of Issue Par Amount Rating Insurer Spread to Delphis Estimated Delphis a 0.106 94.26 Spread to MMD AAA Delphis Comparison MMD Comparison Bond Delphis Scales Spread to MMD AAA Spread to Date Principal Yield 100 98 98 Scale MMD AAA I-Aug-2002 805,000 1.950 2.050 2.100 (0.150) 1.930 0.020 I-Aug-2003 1,230.000 2.390 2.300 2.360 0.030 2.350 0.040 I-Aug-2004 1,270.000 2.810 2.700 2.760 0.050 2.770 0.040 I-Aug-2005 1,290.000 3.160 3.050 3.110 0.050 3.120 0.040 I-Aug-2006 1,330.000 3.440 3.330 3.390 0.050 3.400 0.040 I-Aug-2007 1,380,000 3.730 3.600 3.660 0.070 3.660 0.070 I-Aug-2008 1,435,000 3.970 3.830 3.890 0.080 3.880 0.090 I-Aug-2009 1,485,000 4.100 3.950 4.010 0.090 4.010 0.090 I-Aug-2010 1,545,000 4.230 4.050 4.110 0.120 4.120 0.110 I-Aug-20 11 1,610,000 4.330 4.150 4.210 0.120 4.220 0.110 I-Aug-2012 1,680,000 4.460 4.270 4.330 0.130 4.340 0.120 I-Aug-2013 1.755,000 4.580 4.400 4.440 0.140 4.450 0.130 I-Aug-2014 1,835,000 4.700 4.520 4.580 0.120 4.550 0.150 BYWA Y Ill,65U,OOO - - -=- - -PE\1 :,7 '== -- ~- - - - - - i - - - - - - - Recent Comparables - - - - - DelphislMMD Yield Comparison Issuer Type of Issue Par Allloullt Rating Insurer Nassua County, Florida Optional Gas Tax Revenue Bonds, Series 200 I 5,630,000 S&P AAA and Fitch AAA FGIC Sale Type Negotiated Spread to Delphis Estilllaled Delphis 0.111 94.30 Call Prol'isiolls Dated Date Sale Date Delivery Date Non-Callable 1- Dec- 200! 28-Nov-200 I II-Dee-200! Spread to MMD AAA B Delphis Comparison MMD Comparison BOlld Delphis Scales Spread to MMD AAA Spread to Date Princinal Yield 100 98 98 Scale MMD AAA I-Mar-2002 40.000 2.000 2.050 2.100 (0.100) 1.930 0.070 I-Mar-2003 725.000 2.450 2.300 2.360 0.090 2.350 0.100 I-Mar-2004 745.000 2.880 2.700 2.760 0.120 2.770 0.110 I-Mar-2005 770,000 3.230 3.050 3.110 0.120 3.120 0.110 I-Mar-2006 795.000 3.500 3.330 3.390 0.110 3.400 0.100 I-Mar-2007 820.000 3.770 3.600 3.660 0.110 3.660 0.110 I-Mar-2008 850,000 4.000 3.830 3.890 0.110 3.880 0.120 I-Mar-2009 885,000 4.120 3.950 4.010 0.110 4.010 0.110 BYWAY 5.630,000 - - ~ ==PF.M ==- -= ~- - - i8 I - - - - - - - - - -, - - - - - - - - - ! i I Summary of Sale ___________L ____ · Series 1992 maturities being refunded-Serial Bonds maturing 2002 through 2008 and Term Bonds maturing 2012 and 2020 · Savings levels for the Series 2001 and 2002 Bonds easily exceeded targets. · Pricing of the bonds was comparable with respect to indices and other recent Florida issues. Sources and Uses of Funds Sources of Funds: Par Amount Accrued Interest Net Premium Debt Service Reserve Fund Sinking Fund City Contribution Total Sources: 13,980,000.00 92,664.75 13,169.20 1,255,586.26 203,151.57 431,340.00 15,975,911.78 Uses of Funds: Escrow Deposit Debt Service Resenre Fund Accrued Interest Cost of Issuance Underwriter's Discount Bond Insurance Premium Total Uses: 14,519,189.55 1,172,250.00 92,664.75 71,380.63 82,426.85 38,000.00 15,975,911.78 ...:~ .PHl ! 9 - ! ~=-- I Dee 10,2001 8:38 am Prepared by DBC Finance (Finance 4.314 Winter Springs:W ATRSEWR-02REF92,2002REF) Page I I SOURCES AND USES OF FUNDS I City of Winter Springs Water and Sewer Ref. Rev. Bonds, Series 2002 Current Refunding of Series 1992 Bonds Sale Date: December 4,2001 FINAL NUMBERS I Sources: I Bond Proceeds: Par Amount Accrued Interest Net Premium 13.980,000.00 92,664.75 13,169.20 14,085,833.95 I Other Sources of Funds: Reserve Fund Sinking Fund City Contribution (2002 Maturity) 1,255,586,26 203,151.57 431,340.00 1,890,077.83 I I 15,975,911.78 Uses: I Refunding Escrow Deposits: Cash Deposit SLG Purchases 2,55 14,519,187.00 14,519,189,55 I Other Fund Deposits: Reserve Fund Accrued Interest 1,172,250.00 92,664.75 1,264,914.75 I I Delivery Date Expenses: Cost of Issuance Underwriter's Discount Bond Insurance 67,245.00 82,426,85 38,000.00 187,671.85 I Other Uses of Funds: Additional Proceeds 4,135.63 I 15,975,911.78 I I I I I I Dee 10,2001 8:38 am Prepared by DBC Finance (Finance 4.314 Winter Springs:W ATRSEWR-02REF92,2002REF) Page 2 I SUMMAAY OF REFUNDING RESULTS I City of Winter Springs Water and Sewer Ref. Rev. Bonds, Series 2002 Current Refunding of Series 1992 Bonds Sale Date: December 4,2001 FINAL NUMBERS I Dated Date Delivery Date Arbitrage yield Escrow yield 11/15/2001 01/09/2002 4.691356% 1.908495% I I Bond Par Amount True Interest Cost Net Interest Cost A verage Coupon Average Life 13,980,000.00 4,781845% 4.768915% 4.723917% 10.859 I Par amount of refunded bonds A verage coupon of refunded bonds A verage life of refunded bonds 13,895,000.00 6,096996% 10.945 I PY of prior debt to 01/09/2002 @ 4.691356% Net PV Savings Percentage savings of refunded bonds Percentage savings of refunding bonds 15,691,805.64 1,003,201,90 7,219877% 7.175979% I I I I I I I I I I I I Dee 10,2001 8:38 am Prepared by DBC Finance (Finance 4,314 Winter Springs:W ATRSEWR-02REF92,2002REF) Page 3 I SUMMARY OF BONDS REFUNDED I City of Winter Springs Water and Sewer Ref. Rev. Bonds, Series 2002 Current Refunding of Series 1992 Bonds Sale Date: December 4,2001 FINAL NUMBERS I Bond Maturity Date Interest Rate Par Amount Call Date Call Price I Water and Sewer Refunding Rev. Bonds, Series 1992. 1992: SERIALS 04/01/2002 5.400% 04/01/2003 5.400% 04/01/2004 5.500% 04/01/2005 5.650% 04/01/2006 5,800% 04/01/2007 5.900% 04/01/2008 6.000% TERM12 04/01/2012 6.100% TERM20 04/01/2020 6.125% 420,000.00 440,000.00 465,000.00 490,000.00 520,000.00 545,000.00 580,000.00 2,690,000.00 7,745,000,00 04/01/2002 04/01/2002 04/0 I /2002 04/01/2002 04/0 I /2002 04/01/2002 04/01/2002 04/01/2002 102,000 102.000 102,000 102,000 102.000 102.000 102.000 102.000 I I I 13,895,000,00 I I I I I I I I I I I I Dec 10, 2001 8:38 am Prepared by DBC Finance I (Finance 4.314 Winter Springs: W A TRSEWR-02REF92,2002REF) Page 4 BOND DEBT SERVICE I City of Winter Springs Water and Sewer Ref. Rev. Bonds, Series 2002 Current Refunding of Series 1992 Bonds I Sale Date: December 4, 2001 FINAL NUMBERS Period Annual I Ending Principal Coupon Interest Debt Service Debt Service 04/01/2002 233,377.89 233,377.89 233,377.89 10/0112002 308,882,50 308,882.50 I 04/0112003 550,000 3.000% 308,882.50 858,882,50 1,167,765.00 10/0 112003 300,632.50 300,632.50 04/0112004 565,000 3.000% 300,632.50 865,632,50 1,166.265,00 10/0112004 292,157.50 292,157.50 I 04/0112005 585,000 3.500% 292,157.50 877,157,50 1,169,315.00 10/01/2005 281,920.00 281,920.00 04/01/2006 605,000 3.400% 281,920.00 886,920,00 1,168,840.00 10/01/2006 271,635.00 271,635.00 I 04/01/2007 620,000 3.700% 271,635.00 891,635.00 1,163,270.00 10/01/2007 260,165.00 260,165.00 04/01/2008 650,000 4.000% 260,165,00 910,165.00 1,170,330,00 I 10/01/2008 247,165.00 247,165,00 04/01/2009 675,000 4.000% 247,165.00 922,165.00 1,169,330.00 10/0112009 233,665.00 233,665.00 04/0112010 700,000 4.125% 233.665.00 933,665.00 1,167,330,00 I 10/01/20 I 0 219,227,50 219,227,50 04/01/201 I 725,000 4.250% 219,227.50 944,227.50 1,163,455.00 10/01/2011 203,821.25 203,821.25 04/01/2012 760,000 4,375% 203,821.25 963.821.25 1,167,642.50 I 10/01/2012 187,196,25 187,196.25 04/01/2013 795,000 4.500% 187,196.25 982,196.25 1,169,392.50 10/01/2013 169,308.75 169,308,75 04/01/2014 830,000 4.600% 169,308,75 999,308.75 1,168,617.50 I 10/01/2014 150,218,75 150,218.75 04/01/2015 865,000 5.250% 150,218.75 1,015,218.75 1,165,437.50 10/01/2015 127,512.50 127,512.50 04/01/2016 9 J 0,000 5,250% 127,512,50 1,037,512.50 1,165,025,00 I 10/0112016 103,625,00 103,625,00 04/01/20 I 7 965,000 5.000% 103,625.00 1,068,625.00 1,172,250,00 10/01/2017 79,500.00 79,500.00 04/01/2018 1,010,000 5.000% 79,500.00 1,089,500.00 ] ,169,000.00 I 10/01/2018 54,250,00 54,250.00 04/01/2019 1,060,000 5.000% 54,250.00 1,114,250,00 1,168,500.00 10/01/2019 27,750.00 27,750.00 04/01/2020 1,110,000 5.000% 27,750.00 1,137,750.00 1,165,500.00 I 13,980,000 7,270,642.89 21 ,250,642.89 21,250,642,89 I I I I I I Dee 10,2001 8:38 am Prepared by DBC Finance I I I I I I I I I I I I I I I I I (Finance 4.3 I 4 Winter Springs:W A TRSEWR-02REF92,2002REF) Page 5 SA VrNGS City of Winter Springs Water and Sewer Ref. Rev. Bonds, Series 2002 Current Refunding of Series 1992 Bonds Sale Date: December 4,2001 FINAL NUMBERS Present Value Prior Refunding Refunding Refunding to 01/09/2002 Date Debt Service Debt Service Receipts Net Cash Flow Savings @ 4.69 13560% 04/0 1/2002 837,643.13 233,377.89 92,664.75 140.713.14 696,929.99 690,58] ,05 04/01/2003 ] ,252,606,26 1,167,765.00 I,] 67,765.00 84,841.26 82,304.52 04/0 I /2004 ] ,253,846.26 ],]66,265.00 ],166,265.00 87,581.26 80,969,34 04/0 1/2005 1,253,27 1.26 1,169,315.00 1,169,315.00 83,956.26 74,092.20 04/0 I /2006 1,255,586.26 1,168,840,00 1,168,840,00 86,746,26 72,958,65 04/01/2007 1,250,426.26 1,163,270.00 1,163,270.00 87,156.26 69,886.15 04/01/2008 1,253,271.26 1,170,330.00 1,170,330.00 82,941.26 63,480,68 04/01/2009 1,253,471.26 1,169,330.00 1,169,330.00 84,141.26 61,388.63 04/01/2010 1,250,956.26 I, I 67,330.00 1,167,330,00 83,626.26 58,171.07 04/01/20 I I 1,25 1,306.26 1,163,455,00 1,163,455.00 87,851.26 58,206.93 04/01/2012 1,254,216.26 1,167,642.50 1,167,642,50 86,573,76 54,692.06 04/01/2013 1,254,381.26 1,169,392.50 1,169,392.50 84,988.76 51,191.36 04/01/20 14 1,25 1,606.26 1,168,617.50 1,168,617,50 82,988.76 47,657.48 04/01/2015 1,251,075,00 1,165,437,50 1,165,437.50 85,637.50 46,853.84 04/01/20 I 6 1,252,481.26 1,165,025.00 ],165,025.00 87,456,26 45,621,39 04/01/20 I 7 1,255,518,76 1,172,250,00 1,172,250.00 83,268.76 41,434.24 04/01/20 I 8 1,254,881.26 1,169,000.00 1,169.000.00 85,881.26 40,7 I 9,24 04/01/2019 ],255,568.76 1,168,500,00 1,168,500.00 87,068.76 39,335.43 04/01/2020 1,252,275,00 1,165,500.00 I, I 65,500.00 86,775.00 37,349.84 23,394,388.29 2 I .250,642.89 92,664.75 21,157,978,14 2,236,4 10. 15 1,716,894,10 Savinus Summary PV of savings from cash flow Less: Prior funds on hand Plus: Refunding funds on hand 1,716,894.1 0 -1,890,077.83 1,176,385.63 Net PV Savings 1,003,201.90 I Dee 10,2001 8:38 am Prepared by DBC Finance (Finance 4.314 Winter Springs: W A TRSEWR-02REF92,2002REF) Page 6 I AGGREGATE DEBT SERVICE City of Winter Springs I Water and Sewer Ref. Rev. Bonds, Series 2002 Current Refunding of Series 1992 Bonds Sale Date: December 4, 2001 FINAL NUMBERS I Water and Sewer Ref. Period Rev. Bonds, Aggregate I Ending Series 2002 Series 2000 Series 2001 Debt Service 04/0112002 233,377.89 84,921.25 138,494,38 456,793.52 04/01/2003 1,167,765.00 199,167.50 472,988,76 1,839,921.26 I 04/0 I /2004 1,166,265,00 207,592.50 464,988.76 1,838,846.26 04/01/2005 1,169,315.00 200,905.00 471,688.76 1,841,908.76 04/0112006 1,168,840.00 204,197.50 472,888.76 1,845,926.26 04/01/2007 1,163,270.00 207,242.50 468,788.76 1,839,301.26 I 04/01/2008 1,170,330.00 214,942.50 469,388,76 1,854,661,26 04/01/2009 1,169,330.00 207,490.00 474,488.76 1,851,308.76 04/01/2010 1,167,330.00 214,877.50 464,129.38 1,846,336,88 I 04/01/2011 1,163,455.00 216,827.50 468,132.50 1,848,415.00 04/01/2012 1,167,642.50 218,452.50 461,345.00 1,847,440,00 04/01/2013 1 ,169,392.50 210,045.00 473,470.00 1,852,907,50 04/01/2014 1,168,617.50 216,475.00 469,476.25 1,854,568.75 I 04/01/2015 1,165,437,50 222,331.25 464,787.50 1,852,556,25 04/01/2016 1,165,025.00 213,000.00 473,987.50 1,852,012.50 04/01/2017 1,172,250.00 218,425.00 467,010,00 1,857,685.00 04/01/2018 1,169.000.00 218,337.50 469,031.25 1,856,368,75 I 04/01/2019 1,168,500.00 217,975.00 465,000.00 1,851,475.00 04/01/2020 1,165,500.00 217,337.50 469,875,00 1,852,712.50 04/01/2021 221,287.50 468,625.00 689,912.50 04/0112022 1,443,125.00 466,375,00 1,909,500,00 I 04/0112023 1,978,125,00 1,978,125.00 04/01/2024 1,978,125,00 1,978,125,00 04/01/2025 1,978,125.00 1 ,978,125.00 04/01/2026 1,978,125,00 1,978,125.00 I 04/0 I /2027 1.978,125.00 1,978,125.00 04/01/2028 1,978,125,00 1,978,125.00 04/01/2029 1,978,125.00 1,978,125.00 04/01/2030 1.978,125.00 1,978,125.00 I 04/01/203 1 1,926,562.50 1,926,562.50 21,250,642.89 23,326,517.50 9,514,960.08 54,092,120.47 I I I I I I IDec 10,2001 8:38 am Prepared by DBC Finance (Finance 4.314 Winter Springs:W A TRSEWR-02REF92,2002REF) Page 7 I PRIOR BOND DEBT SERVICE City of Winter Springs I Water and Sewer Ref Rev. Bonds, Series 2002 Current Refunding of Series 1992 Bonds Sale Date: December 4,2001 FINAL NUMBERS I Period Annual Ending Principal Coupon Interest Debt Service Debt Service I 01/09/2002 04/01/2002 420,000 5.400% 4]7,643.13 837,643.13 837,643.]3 10/01/2002 406,303, ] 3 406,303.] 3 04/01/2003 440,000 5.400% 406,303.] 3 846,303.] 3 ] ,252,606,26 I 10/0] /2003 394,423, ] 3 394,423.]3 04/01/2004 465,000 5.500% 394,423.] 3 859,423.]3 1,253,846,26 ] % 1/2004 38] ,635.63 381,635.63 I 04/0 1/2005 490,000 5,650% 38],635,63 87] ,635,63 ] ,253,271,26 10/01/2005 367,793.13 367,793.13 04/0] /2006 520,000 5.800% 367,793,13 887,793.13 1,255,586,26 10/0 ] /2006 352,7]3.13 352,713.]3 I 04/01/2007 545,000 5.900% 352,713.13 897,713,13 1,250,426.26 10/01/2007 336,635.63 336,635.63 04/01/2008 580,000 6.000% 336,635.63 9] 6,635.63 1,253,271.26 I % I /2008 319,235.63 319.235,63 I 04/01/2009 615,000 6.100% 3]9,235.63 934,235.63 1,253,471.26 10/0 1/2009 300,478. ] 3 300,478.] 3 04/01/2010 650,000 6.100% 300,478.13 950,478.13 1,250,956,26 10/01/2010 280,653.] 3 280,653.] 3 I 04/01/201 ] 690,000 6.100% 280,653.] 3 970,653.13 ] ,25] ,306,26 10/01/20] 1 259,608.13 259,608.]3 04/0]/20] 2 735,000 6,100% 259,608,]3 994,608.] 3 1,254,2]6,26 10/01/20] 2 237,190.63 237,]90.63 I 04/0]/2013 780,000 6,]25% 237,]90,63 ],017,]90,63 1,254,381.26 10/01/201 3 2]3,303.]3 213,303.]3 04/01/20] 4 825,000 6,]25% 2]3,303.13 ] ,038,303.13 ] ,25] ,606.26 10/0]/20]4 ] 88,037.50 ] 88,037.50 I 04/0] /20] 5 875,000 6.]25% ] 88,037.50 1,063,037.50 1.25] ,075.00 1O/01/2QI5 ] 6] ,240.63 16] ,240.63 04/0]/20] 6 930,000 6.]25% ] 6] ,240.63 1,09] ,240,63 ] ,252,48] .26 10/01/2016 132,759.38 132,759.38 I 04/01/20] 7 990,000 6,]25% ] 32,759.38 1,122,759.38 1,255,518.76 ]0/01/20]7 102,440.63 102,440.63 04/01/20] 8 ] ,050,000 6,]25% 102,440,63 ],152,440.63 1,254,88] .26 I 10/01/20] 8 70,284.38 70,284.38 04/01/20] 9 ],]]5,000 6.]25% 70,284,38 1,185,284.38 1,255,568.76 10/0 ]/20 19 36,]37.50 36,137,50 04/0] /2020 1,]80,000 6.]25% 36,]37.50 ],216,137,50 ] ,252,275.00 I 13,895,000 9,499,388.29 23,394,388.29 23,394,388.29 I I I I I Dee 10,2001 8:38 am Prepared by DBC Finance (Finance 4.314 Winter Springs: W A TRSEWR-02REF92,2002REF) Page 8 I BOND PRICING I City of Wintcr Springs Water and Scwer Ref Rev. Bonds, Scrics 2002 Currcnt Refunding of Series 1992 Bonds Sale Datc: Decembcr 4,2001 FINAL NUMBERS I Bond Component Maturity Datc Amount Rate Yicld Price 550,000 3,000% 2.450% 100.658 565,000 3.000% 2.870% 100.275 585,000 3.500% 3,220% 100.848 605,000 3.400% 3,500% 99.606 620,000 3.700% 3.760% 99.713 650,000 4.000% 4,000% 100.000 675,000 4.000% 4.100% 99.374 700,000 4.125% 4.220% 99.340 725,000 4.250% 4.330% 99.391 760,000 4.375% 4.460% 99.302 795,000 4.500% 4.580% 99.297 830,000 4.600% 4.680% 99.254 8,060,000 1,775,000 5.250% 4.810% 103.514 C 4,145,000 5.000% 5.050% 99.401 13,980,000 11/15/2001 01/09/2002 04/01/2002 13,980,000,00 13,169.20 13,993,169.20 100.094200% -82,426.85 -0.589606% 13,910,742.35 99.504595% 92,664.75 14,003,407.10 I Current Intercst Scrial Bonds: 04/0112003 04/0112004 04/0112005 04/01/2006 04/01/2007 04/01/2008 04/01/2009 04/01/201 0 04/01/2011 04/01/2012 04/01/2013 04/01/2014 I I I I Term Bond 2016: 04/01/2016 I Term Bond maturing 2020: 04/01/2020 I Datcd Date Dclivcry Date First Coupon I Par Amount Premium I Production Undcrwritcr's Discount I Purchase Price Accrucd Intcrcst Nct Proceeds I I I I I I Dec 10,2001 8:38 am Prepared by DBC Finance (Finance 4,314 Winter Springs:W A TRSEWR-02REF92,2002REF) Page 9 I BOND SUMMARY STATISTICS I City of Winter Springs Water and Sewer Ref. Rev. Bonds, Series 2002 Current Refunding of Series 1992 Bonds Sale Date: December 4,2001 FINAL NUMBERS I Dated Date Delivery Date Last Maturity 11/15/2001 01/09/2002 04/0 I /2020 I Arbitrage Yield True Interest Cost (TIC) Net Interest Cost (NIC) All-In TIC A verage Coupon 4.691356% 4.781845% 4.768915% 4.841931% 4.723917% I I Average Life (years) Duration of Issue (years) 10.859 8.212 I Par Amount Bond Proceeds Total Interest Net Interest Total Debt Service Maximum Annual Debt Service A verage Annual Debt Service 13,980,000.00 14,085,833.95 7,270,642.89 7,339,900.54 21,250,642.89 1,172,250.00 1,160,754.67 I I Underwriter's Fees (per $1000) Average Takedown Management Fee Other Fee 4.443401 0.850000 0,602654 I Total Underwriter's Discount 5,896055 Bid Price 99,504595 I Par Average Average Bond Component Value Price Coupon Life Current Interest Serial Bonds 8.060,000.00 99.698 4.176% 7.177 Term Bond 2016 1,775,000.00 103.514 5.250% 13.740 Term Bond maturing 2020 4,145,000.00 99.401 5.000% 16.786 13,980,000,00 10.859 I I I I I I I I Dee 10,2001 8:38 am Prepared by DBC Finance (Finance 4.3] 4 Winter Springs:W A TRSEWR-02REF92,2002REF) Page J 0 I BOND SUMMARY STATISTICS I City of Winter Springs Water and Sewer Ref. Rev. Bonds, Series 2002 Current Refunding of Series 1992 Bonds Sale Date: December 4, 200 I FINAL NUMBERS I All-In TIC TIC 13,980,000.00 13,980,000.00 92,664.75 92,664,75 ]3,169.20 13,] 69,20 -82,426.85 -82,426.85 -67,245,00 -38.000,00 -38,000,00 13,965,407.10 ] 3,898,] 62,1 0 01/09/2002 01/0912002 4.78]845% 4.84]93]% Arbitrage Yield I Par Value + Accrued Interest + Premium (Discount) - Underwriter's Discount - Cost of Issuance Expense - Other Amounts ] 3,980,000.00 92,664.75 ]3,]69,20 I -38,000.00 I Target Value ]4,047,833.95 Target Date Yield 0] /09/2002 4.69]356% I I I I I I I I I I I I I Dee 10,2001 8:38 am Prepared by DBC Finance (Finance 4.314 Winter Springs:W ATRSEWR-02REF92,2002REF) Page 1 J I ESCROW REQUIREMENTS I City of Winter Springs Water and Sewer Ref. Rev. Bonds, Series 2002 Current Refunding of Scries 1992 Bonds Sale Date: December 4,2001 FINAL NUMBERS I Period Ending Pri nci pal Interest Principal Redeemed Redemption Premium Total I 04/01/2002 420,000,00 417,643,13 13,475,000,00 269,500.00 14,582,143.13 420,000.00 417,643.13 13,475,000.00 269,500.00 14,582,143,13 I I I I I I I I I I I I I I I I Dee 10,2001 8:38 am Prepared by DBC Finance (Finance 4.314 Winter Springs:W A TRSEWR-02REF92,2002REF) Page 12 I ESCROW COST I City of Winter Springs Water and Sewer Ref. Rev. Bonds, Series 2002 Current Refunding of Series 1992 Bonds Sale Date: December 4, 2001 FINAL NUMBERS I Type of Security Maturity Date Par Amount Rate Total Cost I SLG 04/01/2002 14,519,187 1.930% 14,519,187.00 14,519,]87 ]4,519,]87,00 I Purchase Date Cost of Securities Cash Deposit Total Escrow Cost I 01/09/2002 ]4,5]9,]87 2.55 14,5]9,189,55 14,519,]87 2,55 14,519,189,55 I I I I I I I I I I I ~ecl_1 8_ Pre"'YD"lanc~ - - - - - -------- ---winancern4 Wiilier'Springs:WATRSEWR-02REF92,2002REF) Page 13 ESCROW STATISTICS City of Winter Springs Water and Sewer Ref. Rev. Bonds, Series 2002 Current Refunding of Series 1992 Bonds Sale Date: December 4, 2001 FINAL NUMBERS ........ Escrow Modified Total Duration Escrow Cost (years) Yield to Receipt Date Yield to Disbursement Date Perfect Escrow Cost Value of Negative Arbitrage Cost of Dead Time Refunded Bonds (REFBONDS): SF_ESC 203,151.57 CCESC 431,340.00 0.226 0.226 1.908494% 1.908496% G]obal Proceeds Escrow: 13,884,697.98 0,226 ] .908495% 0.02 14,5]9,189.55 1.908494% ] .908496% 201,888.67 428,658.55 1,262.90 2,681.44 0.0] 1.908495% 13,798,383.14 86,314.83 0.01 14,428,930.36 90,259.17 Delivery date Arbitrage yield 01/09/2002 4.691356% I Dec 10,2001 8:38 am Prepared by DBC Finance (Finance 4.314 Winter Springs:WATRSEWR-02REF92,2002REF) Page 14 I UNDERWRITER'S DISCOUNT I City of Winter Springs Water and Sewer Ref. Rev. Bonds, Series 2002 Current Refunding of Series 1992 Bonds Sale Date: December 4,2001 FINAL NUMBERS I Underwriter's Discount $/1000 Amount I Average Takedown Management Fee Underwriter's Counsel MSRB PSA DaIcomp DTC Day Loan CUSIP Communications 4.44340 0.85000 0.35765 0,03000 0.03000 0,08000 0.03000 0,03000 0.01500 0.03000 I I 62,] 18.75 ] 1,883,00 5,000.00 4] 9.40 419.40 ],1 ]8.40 419.40 4]9.40 209.70 419.40 5.89606 82,426.85 I I I I I I I I I I I I I Dee 10,2001 8:38 am Prepared by DBC Finance (Finance 4.314 Winter Springs:W A TRSEWR-02REF92,2002REF) Page 15 I COST OF ISSUANCE I City of Winter Springs Water and Sewer Ref. Rev, Bonds, Series 2002 Current Refunding of Series 1992 Bonds Sale Date: December 4,2001 FINAL NUMBERS I Cost of Issuance $11000 Amount I I Financial Advisors Fee Bond Counsel Fee Disclosure Counsel Fce Counsel Expenses S&P Rating Fee Fitch Rating Fee Verification Agent Printer Registrar/Escrow Agent Miscellaneous 0.8580] 1.07296 0.71531 0,17883 0.42918 0.26824 0,14306 0.35765 0.D7153 0.71531 I 11,995,00 15.000,00 10,000.00 2,500.00 6,000,00 3,750.00 2,000.00 5,000.00 1,000.00 10,000,00 4.81009 67,245,00 I I I I I I I I I I I I