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Home My WebLink About2001 07 23 Regular D Issuance of Series 2001 Water and Sewer Refunding Bonds July 23,2001 Regular Agenda Item "D" Issuance of Bonds Report COMMISSION AGENDA ITEM D CONSENT INFORMATIONAL PUBLIC HEARING REGULAR X 07/23/01 Meeting MGR. ~EPT Authorization REQUEST: City Manager requesting the Commission to receive a report from the City's Financial Advisor related to the results of the Issuance of Series 2001 Water and Sewer Refunding Bonds. PURPOSE: The purpose of this agenda item is to provide the Commission with a report of results of the Refunding of Series 1991 Water and Sewer Bonds. CONSIDERATION: On April 9, 2001 the City Commission authorized the City Manager to issue refunding bonds for 1991 and 1992 water and sewer provided the 1991 issue meet a not less than 10% present value saving and the 1992 issue not less than 5% present value saving. On July 11, 2001 the 1991 bond prices were fixed at 12.67 present value saving. The 1992 bonds have yet to meet the 5% minimum present value saving target. FUNDING: The refunding bond issue for the 1991 issue will result in a $55,000 annual debt service reduction in the water and sewer fund. RECOMMENDATION: Receive the report provided by David Moore the City's Financial Advisor and ask any questions the Commission deems necessary. ATTACHMENTS: July 12,2001 David Moore Letter July 12,2001 Jeff Larsen Memorandum COMMISSION ACTION: 07/12/01 THU 14:23 FAX 407 648 1323 PFM @002 A:-=- := PFM Sdt ~ 72.0 ?tll SO'll.n Orange Avenue 'Jr;l'ndo, FL 32,)1.)470 407 1;,\8.2208 407 1,48.1323 f3X YNM .pfm.com -- -- ~ Public Financial Management Financial and Inveslment Advisor!! July 12, 2001 Mr. Ronald McLemorc Ci ly Manager Ciry of Wincer Springs 1126 East S.R. 434 Winter Springs, FL 32708 Mr.. McLl.;roon.:: As independent financial :J.Jvisor to the City of Winter Springs, Plorith (the "Cily"), Public Firuncial Managemenc, Inc. ('PF1vI") is pleased co provide j[S opinion as to the fairness and appropriateness to the CilY of the issuance of its $6,065,000 Water and S(:wcr Refunding Revenue Bonds, Series 2001A (the "Series 2001A Bonds"). The Series 2001 Honds ~re being issued for the purpose of currently refunding the outs landing Series 1991 parity bonds :L11d paying costs of issuance of the Scrics 200IA Bonds. You have requested our recommendation regarding the Bond Purchase Agreement presentc:d to the City by Hanifen Imhoff on behalf of itself, Gardnyr ,Michael Capir.;d, Inc. and William R. Hough & Co. (collectively the "Underwriters"). To prepare for the pricing of the Series 2001A Bonds, PFM ~n:llY7.c::d intc:re~t rates .and underwriting spreads of comparable issucs in the Flor.ida and national municipal markers. As part of our ongoing involvement in the municipal debt market, we h;;.vc: closely f()lbwed the recem Cl:ends of interest rates, municipal debt offerings and invcmory, and other matters that may affect tax- cxcmpr issues. Tn ;Jcldiriot1, PfM h;JS comp:lrec1 prcvious City ofWinrcl: Springs bond issues to national indices of tax-exempt interest ra tes in order evaluare the relative t\ppropriateness of thl.; Series 2001A Bonds. Bascd on the foregoing and our knowledge and experience in (he issuance of tax-exempt debt, it is Public financial Management's opinion that the coupon rates, yields ;md undc;Jwriting spread, all of which constitute the pricing of rhc Serics 2001A Bonds, are fair and appropriate {or the City. The financing resulted in a true interest cost (nC) of 4.8628% and a gross underwriting spread of $40,210.95. TI.e net present value sa.vings arc $732,297.84 (){" 12.67% of r:hc refunded bonds par amount. The final m:J.rurity of the Ser.ies 2001A Bonds is Oerober 1,2021. As indicated herein, the financing meers or exceeds the terms and conditions presc;ribed in the Resolution. JUL-12-2001 14:34 407 648 1323 97% P.02 07/12/01 THU 14:23 FAX 407 648 1323 PFU ~003 City ofWint.er Springs, Florida July 12, 2001 Page 2 Therefore, PFM's recommendation is that thc City acc<.pt the tc:trn::; of thc: sale of the Series 2001A Bonds as set forth in the Bond Purchase Agreement and awar.d the Series 2001A Bonds to the Undc(W(iters. PFM appreciates having tbis opportunity to work with the City and it~ staff, and \l,'e look fOl:'W;:lxd to assisting rbc City in th~ furore. Sincerely, PUBLIC FINANCIA L I\1ANAGEl'vfENT, INC. DtvtdIV/h David M. Moore; Senior Managing Consultant JUL-12-2001 14:34 407 648 1323 97% P.03 .. ...,.. Hanifen, Imhoff Southeast Regional Office Division of Stifel Nicolaus 1560 N. Orange Avenue, Suite 210 Winter Park, Florida 32789 Phone (407) 622-0296 Fax (407) 622-0305 Memorandum DATE: July 12, 2001 TO: Mr. Ron McClemore, City Manager Ms. Louise Frangoul, Finance Director City of Winter Springs, Florida Jeff Larson,Managing Director ~ Gary Akers,Senior Vice President Carlos Pereda, Vice President and enior Analyst FROM: RE: City of Winter Springs, Water and Sewer Refunding Revenue Bonds, Series 2001; Pricing Comments Per the verbal award discussions yesterday with Mike Imhoff, Managing Director, Trading and Syndicate, and David Moore, Financial Advisor, Public Financial Management, we were very pleased to be able to "hit the market" so aggressively yesterday. We were able to outperfonn the general market and obtained lower interest rates than other comparable Florida issuers received this week. The BP A had been delegated to the City Manager by the Commission so long as we met the minimum 10% PV savings target and we reached savings as set forth below: Present Value % Savings: Future Value $ Savings: Present Value $ Savings: Average Annual $ Savings: 12.67% of refunded bonds $1,137,910 $732,288 Approx. $56,890 It is always a pleasure to be able to report when we significantly exceed savings targets, especially when a number of municipalities are happy with savings of 3 to 5 %. Staffs decision to wait until after the June and July bond redemptions and recent Federal Reserve action helped to create these market conditions. As you know, we worked closely with you and David Moore to monitor market conditions over the last 9 months, and had recommended back in April 2001 that we wait until early July to price the bonds. The City should also be commended on its continued fiscal prudence and management practices, as reflected in the "A" category underlying ratings that helped open up more conservative investors to this issue. David also did a very good job in negotiating for the ..~ ..: City low insurance and surety premiums as the City's credit was very well received by MBIA, one of the leading bond insurers in the country. For your reference, the difference in PV $ incremental savings above the 10% targeted level was approximately $154,290. The underwriting team's ability, led by Hanifen, Imhoff, to negotiate serials bonds out through the final maturity of 2021 versus a 2021 Term bond at higher rates resulted in debt service savings of approximately $17,475. Alan Scott's group at Hanifen did a great job at obtaining orders from throughout the country, and we received good support from the two co-managers. City Staff should be commended, and we ask that this memo be shared with the Mayor and City Commissioners. We would be pleased to discuss this at a City Commission meeting if you would find that to be helpful. We look forward to continuing to be of service and working on the Series 2002 forward refunding and other issues as needs arise. We appreciate the opportunity to be of service. JTL cc. Mike Imhoff, Managing Director, Syndicate and Trading cc. Alan Scott, Managing Director, Institutional Sales cc. Steve Bell, Managing Director, Public Finance cc. David Moore, Senior Managing Consultant, Public Financial Management cc. Michael Williams, Esq., Akerman Senterfitt Eidson cc. Jean Wilson, Esq., Nabors Giblin & Nickerson 2 SOURCES AND USES OF FUNDS City of Winter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 2001 Current Refunding of Series 1991 (2002-2021) Initial Pricing Dated Date Delivery Date 07/01/2001 08/01/2001 Sources: Bond Proceeds: Par Amount Accrued Interest Net Original Issue Discount 6,065,000.00 23,082.40 -11,109.95 6,076,972.45 Other Sources of Funds: Existing Sinking Fund 127,577.00 6,204,549.45 Uses: Refunding Escrow Deposits: Cash Deposit SLG Purchases . 0.63 6,050,764.00 6,050,764.63 Other Fund Deposits: Accrued Interest 23,082.40 Delivery Date Expenses: Cost of Issuance Underwriter's Discount Bond Insurance Surety Bond 65,000.00 40,210.95 17,000.00 6,000.00 128,210.95 Other Uses of Funds: Additional Proceeds 2,491.47 6,204,549.45 Jull1,2001 1 :39 pm Prepared by DBC Finance (Finance 4.411 Winter Springs: 1991T-REF,CURRENT) Page 1 Dated Date Delivery Date Arbitrage yield Escrow yield Bond Par Amount True Interest Cost Net Interest Cost Average Coupon Average Life SUMMARY OF REFUNDING RESULTS City,ofWinter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 2001 Current Refunding of Series 1991 (2002-2021) Initial Pricing Par amount of refunded bonds Average coupon of refunded bonds Average life of refunded bonds PV of prior debt to 08/01/2001 @ 4.786215% Net PV Savings Percentage savings of refunded bonds Percentage savings of refunding bonds 07/01/2001 08/01/2001 . 4.786215% 3.611329% 6,065,000.00 4.862845% 4.821390% 4.752090% 12.127 5,780,000.00 6.672092% 12.749 6,888,264.13 732,288.55 12.669352% 12.074007% Jul11,2001 1 :39 pm Prepared by DBC Finance (Finance 4.411 Winter Springs: 1991T-REF,CURRENT) Page 2 ------------------- ...--- ..-- -= PlFM . . . July 23, 2001 Regular Agenda Item "D" Issuance of Bonds Report COMMISSION AGENDA ITEM D CONSENT INFORMATIONAL PUBLIC HEARING REGULAR X 07/23/01 Meeting MGR. ~DEPT Authorization REQUEST: City Manager requesting the Commission to receive a report from the City's Financial Advisor related to the results of the Issuance of Series 2001 Water and Sewer Refunding Bonds. PURPOSE: The purpose of this agenda item is to provide the Commission with a report of results of the Refunding of Series 1991 Water and Sewer Bonds. CONSIDERATION: On April 9, 2001 the City Commission authorized the City Manager to issue refunding bonds for 1991 and 1992 water and sewer provided the 1991 issue meet a not less than 10% present value saving and the 1992 issue not less than 5% present value saving. On July 11, 2001 the 1991 bond prices were fixed at 12.67 present value saving. The 1992 bonds have yet to meet the 5% minimum present value saving target. FUNDING: The refunding bond issue for the 1991 issue will result in a $55,000 annual debt __ service reduction in the water and sewer fund. RECOMMENDATION: Receive the report provided by David Moore the City's Financial Advisor and ask any questions the Commission deems necessary. A TT ACHMENTS: July 12,2001 David Moore Letter July 12,2001 Jeff Larsen Memorandum COMMISSION ACTION: . . . 07/12/01 THU 14:23 FAX 407 648 1323 PFM !4J 002 ..::~ .== PFM S~i1~ 72.0 :?O 1 $(r.J(n Orange Avenue '::>r",,,do. FL 329':11-)470 407 .;48-2208 4071>48-1323 fax v,Wo!; .pfm.com - --= '"""!!!.- Public Financial Management Financial and Investment Advigof'.l July 12, 2001 Mr. Ronald McLemore Ci Ly Manager Ciry of Winter Springs 1126 East S.R. 434 Winter Springs, FL 32708 Mr. McLcmon:: As independent financ.ial :ldvisor to the City of Winter Springs, Florith (the "City"), Public Financial Managemenc, Inc. CPFM") is pleased co provide ics opinion as to the fairness and appropri.\teness to the CilY of the issuance of its $6,065,000 Water and Sewer RefLlnding Revenue: Bonds, Series 2001A (the "Series 200IA Bonds"). The Series 2001 Honds <lre being issued for the purpose of currently refunding the oLltslancling Series 1991 parity bonds and p2.ying costs of issuance of thc Scrir;s 2001A Bonds. You have requested our recommendation regarding the Bond Purchase Agreement presented to the City by Hanifen Imhoff on behalf of itself, Gardnyr Michael Capir.:!l, Inc. and William R. Hough & Co. (collcccivcly the "Underwriters"). To prepare for the pricing of the Series ZOOIA Bonos, PFM ~n:llyzed interest rates aod undcfwricing spreads of comparable issucs in the Florida and national municip:>J m.a.rkecs. As part of our ongoing involvement in the municipal debt market, we: h;;LVC closely f(lllowcd thc rcccnc o:ends of interest rates. municipal dcbt offerings and inventory. and other macro's rhat ~l1ay affect tax- exempt iS5ucs. Tn addition, PfM h;lS compucd previous City ofWinrct: Springs bond issues to narional indices of tax-exempt imeresc rates in order evaluate the relative .\ppropriateness of thc Series 2001A Bonds. Based on the foregoing and our knowledge and experience in the issuance of tax-exempt dc:bt~ it is Public financial Management's opinion that the coupon rates, yields ;md undcrwriting spread, all of which constitute thc pricing of thc Scrics 200IA Bonds, arc f:Dr and appropriate {or the City. The financing resulted in a true interest cost (fIC) of 4.8628% and :t gros<; underwriting spread of $40,210.95. The net present value savings arc $732,297.84 or 12.67% of the refunded bonds par amount. The final maturity of the Series 200lA Bonds is October 1,2021. ^s indicated herein, the financing mee(s or exceeds the terms and conditions prescribed in the Resolution. Till _1 ':>-':>1/\1.'\1 1.1: <.1 .1V1? C,.1Cl 1<':>< q?;; P.0~ . . . 07/12101 THU 1<1: 23 FAX <107 6.IS 1323 PB! [aJ 003 City ofWinrer Sprillg.~, Florida july 12, 2001 Page 2 Therefore, PFM's recommendation is that thc City acct:pt the te;rms of the; ~alc of the Series 2001A Bonds as set forth in the Bond Purchase Agreement and award rhe Series 2001A Bonds to the; Undct"\vcite;rs. PFM appreciates having this opportunity to work with the Cit)' and its staff, and we look forwaxd to assisting the Ciry in the: future:. Sincerely, PUBLIC FINANCIAL ivtANAGE:MENT, INC. Dwui IV/h David ~vL Moort: Senior Managing COC1~\.Jl(am JUL-12-2001 14:34 P.03 407 648 1323 97% . Hanifen, Imhoff Southeast Regional Office Division of Stifel Nicolaus 1560 N. Orange Avenue, Suite 210 Winter Park, Florida 32789 Phone (407) 622-0296 Fax (407) 622-0305 Memorandum DATE: July 12, 2001 TO: Mr. Ron McClemore, City Manager Ms. Louise Frangoul, Finance Director City of Winter Springs, Florida Jeff Larson,Managing Director ~ Gary Akers,Senior Vice President Carlos Pereda, Vice President and enior Analyst FROM: City of Winter Springs, Water and Sewer Refunding Revenue Bonds, Series 2001; Pricing Comments . Per the verbal award discussions yesterday with Mike Imhoff, Managing Director, Trading and Syndicate, and David Moore, Financial Advisor, Public Financial Management, we were very pleased to be able to "hit the market" so aggressively yesterday. We were able to outperform the general market and obtained lower interest rates than other comparable Florida issuers received this week. The BP A had been delegated to the City Manager by the Commission so long as we met the minimum 10% PV savings target and we reached savings as set forth below: RE: Present Value % Savings: Future Value $ Savings: Present Value $ Savings: Average Annual $ Savings: 12.67% of refunded bonds $1,137,910 $732,288 Approx. $56,890 . It is always a pleasure to be able to report when we significantly exceed savings targets, especially when a number of municipalities are happy with savings of 3 to 5 %. Staffs decision to wait until after the June and July bond redemptions and recent Federal Reserve action I)elped to create these market conditions. As you know, we worked closely with you and David Moore to monitor market conditions over the last 9 months, and had recommended back in April 2001 that we wait until early July to price the bonds. The City should also be commended on its continued fiscal prudence and management practices, as reflected in the "A" category underlying ratings that helped open up more conservative investors to this issue. David also did a very good job in negotiating for the . . . City low insurance and surety premiums as the City's credit was very well received by MBIA, one of the leading bond insurers in the country. For your reference, the difference in PV $ incremental savings above the 10% targeted level was approximately $154,290. The underwriting team's ability, led by Hanifen, Imhoff, to negotiate serials bonds out through the final maturity of 2021 versus a 2021 Term bond at higher rates resulted in debt service savings of approximately $17,475. Alan Scott's group at Hanifen did a great job at obtaining orders from throughout the country, and we received good support from the two co-managers. City Staff should be commended, and we ask that this memo be shared with the Mayor and City Commissioners. We would be pleased to discuss this at a City Commission meeting if you would find that to be helpful. We look forward to continuing to be of service and working on the Series 2002 forward refunding and other issues as needs arise. We appreciate the opportunity to be of service. JTL cc. Mike Imhoff, Managing Director, Syndicate and Trading cc. Alan Scott, Managing Director, Institutional Sales cc. Steve Bell, Managing Director, Public Finance cc. David Moore, Senior Managing Consultant, Public Financial Management cc. Michael Williams, Esq., Akerman Senterfitt Eidson cc. Jean Wilson, Esq., Nabors Giblin & Nickerson 2 . SOURCES AND USES OF FUNDS City of Winter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 2001 Current Refunding of Series 1991 (2002-2021) Initial Pricing Dated Date Delivery Date 07/01/2001 08/01/2001 Sources: Bond Proceeds: Par Amount Accrued Interest Net Original Issue Discount 6,065,000.00 23,082.40 -11,109.95 6,076,972.45 Other Sources of Funds: Existing Sinking Fund 127,577.00 eJ 6,204,549.45 Uses: Refunding Escrow Deposits: Cash Deposit SLG Purchases 0.63 6,050,764.00 6,050,764.63 Other Fund Deposits: Accrued Interest 23,082.40 Delivery Date Expenses: Cost of Issuance Underwriter's Discount Bond Insurance Surety Bond 65,000.00 40,210.95 17,000.00 6,000.00 128,210.95 Other Uses of Funds: Additional Proceeds 2,491.47 6,204,549.45 . . Dated Date Delivery Date Arbitrage yield Escrow yield Bond Par Amount True Interest Cost Net Interest Cost Average Coupon Average Life SUMMARY OF REFUNDING RESULTS City. of Winter Springs, Florida Water and Sewer Ref. Revenue Bonds, Series 2001 Current Refunding of Series 1991 (2002-2021) Initial Pricing Par amount of refunded bonds A verage coupon of refunded bonds A verage life of refunded bonds . PV of prior debt to 08/01/2001 @ 4.786215% Net PV Savings Percentage savings of refunded bonds Percentage savings of refunding bonds . 07/01/2001 08/01/2001 4.786215% 3.611329% 6,065,000.00 4.862845% 4.821390% 4.752090% 12.127 5,780,000.00 6.672092% 12.749 6,888,264.13 732,288.55 12.669352% 12.074007% T.. t 1 1 ., "" 1 1 _.., () __...." n_'""....... _.....,..1 L _. "n,. T';':.. _. .~ _ .. IT"": ,. .. ... "" , ~ ",.,.0.., ------------------- City of Winter Springs, Florida Summary of Water and Sewer Refunding Bonds ~ . Issued to currently refund Water and Sewer Refunding Revenue Bonds, Series 1991 Maturities being refunded-Serial Bonds maturing 2002 through 2005 and Term Bonds maturing 2014 and 2021 . City of Winter Springs Water and Sewer Refunding Bonds, Series 2001 Summary of Refunding of Series 1991 Bonds Par Amount of Refunding Bonds Par Amount Refunded Bonds Interest Rates Total Savings Present Value Savings Percent Savings Series 2001 6,065,000 5,780,000 2.900/0 - 5.120/0 1,137,921 732,300 12.670/0 ~ =PFM 11 ~= ~ - - - - - - - - - - - - - - - - - - - Market Conditions for Sale - Historical Yields · Rates are near historic lows and lower than all but 1998 lows. Ten Year Comparison of the 10- and 30-Year Treasury and Bond Buyer 25 RBI 9.000 8.000 .~~N 7.000 6.000 5.000 4.000 3,000 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ <:>",\' <:>",\<:> ,,\' <:>"''1 ~\ r!;-\<::l <:>",\' ,,,,'I <:>",\' <:>",,\ <:>,,\' ,<:>\ ,,,,\' ~"l\ <:>"''1 <:>,<>\ ,,'I <:>,\ ~'I <:>b\' ~",'I ,,\' <:>"''1 ~\' ~,,\ <:>",\' ,,,,\ <:>,;j.' <:>",,\ r!;-\. ,<:>\ ,,,,\ <:>",\ 1:l"''I <:>,<>\',,'1 <:>,\' ~'I <:>",\ rg,'I ,,\' <:>'>'1 ~\' -10- Year TSY - 30- Y car TSY 25 REV Bond ~ ~PFM 12 ~= ~- - - - - - - - - - - - - - - - - - - - Market Conditions for Sale - Historical Yields Two Year Comparison ofthe 10- and 30-Year Treasury and the Bond Buyer 25 RBI 7.000 6.500 6.000 5.500 5.000 4.500 4.000 3.500 ~ ~ ~ ~ ~ ~ ~ # # # # # ~ # ~ # # ~ # ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~#f~~~~~~~~~~#f#~~~~~~ -10-YearTSY -30-YearTSY 25 REV Bond ...:= iiPFM 13 - ~=- ------------------- Market Conditions for Sale - Visible Supply · Heavy supply can put pressure on new issues. · Supply is not expected to improve (decline) as issuers race to market in front of an expected $10+ billion of California power-related bonds. 12000.000 8000.000 10000.000 ....... '" c o :3 's e -a: 6000.000 p. :I en " ;e '" ;> 4000.000 2000.000 0.000 '" '" '" '" '" '" 0 0 0 0 0 0 0 0 0 0 0 0 ..... 0 ..... ..... ..... 0 0 '" '" '" '" '" '" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 '" ~ '" '" '" '" ~ ~ 0 0 0 0 0 0 0 ~ 0 ~ ~ 0 ~ ~ 0 0 0 ..... ..... ..... ..... ..... N N N N N N N N N N N N '- '- '- '- '- '- '- '- '- '- '- '- '- '- '- '- '- '- '- '- '- '- '- '- '- ..... ..... ..... ..... ..... .:::::. .:::::. ..... .:::::. .:::::. ..... .:::::. .:::::. ..... ..... ..... ..... ..... ..... ..... ..... ..... .:::::. ..... '- '- '- '- '- '- '- '- '- '- '- '- '- '- '- '- '- '- r- eo '" 0 ..... N ..... N '" '<t U"\ '" r- eo '" 0 ..... N ..... N '" '<t U"\ '" r- ..... ..... ..... ..... ..... ..... .-- -- o Competitive II Negotiated .:= PFM 14 LJ -- -=- ------------------- Market Conditions for Sale - Economic Releases <HELP> for explanation. Enter D <Go> for a list of economists' conomic UNITED STATES '> I . ATE TIME 7/ 9 15:00 7/10 8:55 7/10 10:00 7/12 8:30 7/12 8:30 7/12 11:32 7/13 8:30 7/13 8:30 7/13 8:30 7/13 8:30 7/13 9:50 7/16 8:30 INDICATOR n US Consumer Cred i t ~ US Instinet Redbook Retail Sales ~ US Wholesale Inventories ~ US Initial Jobless Claims ~ US Imports All Commodity Price ~ US Bloomberg Retail Sales n US Producer Price Index ID US -Less Food & Energy ~ US Advance Retail Sales 1m US Reta i I Sa I es Less Au tos III US U. of M i ch i gan Conf i dence 12l US Bus i ness Inventor i es DG21 Index ECO IRevised ACTUAL PRIOR $6.5B $13.7B -1. 37. -1. 3' 0.27. 0.17. 445k 403k -0.57. 0.27. 2. 87. 1. 1 ' -0.17. -0.47. 0.1' 0.17. 0.17. 0.2' 0.37. 0.27. 0.47. 0.27. -0.27. 0.47. 93.0 93.7 92. -0.17. 0.0' Monitoring enabled. BN SURVEY (MAY) $10.0B (JUL 10) -0.17. (MAY) 0.07. (JUL 7) 390k (JUN) -0.17. (JUN) (JUN) (JUN) (JUN) (JUN) (JUL P) (MAY) ID Past and Future Release Dates FULL TEXT RELEASES U) News 1~ FED & PHILA RES. & BEIGE BOOK 1~ FOMe ACTIVITIES 1@ ECONOMIC RELEASES For more information please press <HELP><HELP> Australia 61 2 9777 8655 Brazil 5511 3048 4500 Europe 44 20 7330 7575 Hong Kong 852 2977 Japan 81 3 3201 8880 Singapore 65 212 1234 U.S. 1 212 318 2000 Germany 49 69 92041210 Copyright 2001 Bloomberg L.P. 1778-424-0 13-Jul-01 13:25:08 ...:=- CJPFl\L 15 -- ....=- - - - - - - - - - - - - - - - - - - - Pricing Performance · The City of Winter Springs' Water and Sewer Refunding Bonds priced very well relative to the major indices. · The MMD index is not a AAA insured index, but an index representing natural AAA GO issues. DelphisIMMD YIeld Comparison Issuer City of Winter Springs, Florida Call Provisiol/s 10/1/11 @ Par Type of Issue Water and Sewer System Refunding Bonds. Series 200 I Dated Date I-Jul-2001 Par Amoullt 6.065.000 Sale Date II-Jul-2ool Ratil/g S&P AAA and Fitch AAA Delil'ery Date I-Aug-2001 II/surer MBIA Gross Spread $6.63 Sale Type Negotiated Takedowl/ $4.49 G ~ Key indicator Spread to Delphis 0.016 Spread to MMD AM ..... for comparison Estimated Delphis 97.43 of pricing performance. Delphis Comparison MMD Comparison BOl/d Delphis Scales Spread to MMDAM Spread to Date Pril/cival Yield 100 98 ~ Scale MMD AM I-Oct-2oo2 200.000 2.900 2.650 2.700 0,200 2.630 0.270 I-Oct-2003 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-OCI-2006 230.000 3.760 3.700 3.750 0.010 3.720 0,040 I-Ocl-2007 240.000 3.940 3.880 3.930 0.010 3.900 0.040 I-OcI-2008 255.000 4.080 4,010 4.060 0.020 4.060 0.020 I-OCI-2009 255.000 4.200 4.130 4.180 0.020 4.180 0.020 I-OcI-2010 270.000 4.300 4.270 4.330 (0.030) 4.280 0.020 I-Ocl-2011 275.000 4.400 4.370 4.430 (0.030) 4.380 0.020 I-OcI-2012 300.000 4.550 4.460 4.510 0.040 4.510 0.040 )-Ocl-2013 310.000 4.650 4.580 4.630 0.020 4,610 0.040 I-OCI-2014 320.000 4.750 4.680 4.730 0.020 4.710 0.040 I-OCI-2015 345.000 4.860 4.780 4.830 0.030 4.810 0,050 I-Ocl-2016 355,000 4.930 4.850 4.900 0.030 4.880 0.050 I-OCI-2017 375.000 4.980 4.910 4.960 0.020 4.940 0,040 I-Ocl-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 S PFM 16 'I!!!!!!!!!!'- ~ - - - - - - - - - - - - - - - Recent Florida Comparables DelphisIMMD Yield Comparison Issuer Type of Issue Par Amount Raling Insurer Sale Type City of Boca Raton, Florida Water and Sewer System Revenue Bonds, Series 2001 24,460,000 Moody's Aal, S&P AA+, Fitch AAA None Competitive Call Provisions Daled Dale Sale Dale Delivery Dale Gross Spread 10/1/11 @ Par I-JuI-200l IO-Jul-2001 31-Jul-200 I $6.50 Spread 10 Delphis Eslimaled Delphis G (0.059) 100.50 Spread 10 MMD AAA De/phis Comparison MMD Comparison Bond Delphis Scales Spread 10 MMD AAA Spread 10 Date Principal Yield 100 98 98 Scale MMD AAA I-Oct-2006 1,175,000 3.700 3.720 3.770 (0.070) 3.730 (0.030) I-Oct-2007 1,220,000 3.880 3.940 3.990 (0.11 0) 3.910 (0.030) I-Oct-2008 1,270,000 4.040 4.060 4.110 (0.070) 4.060 (0.020) I-Oct-2009 1,335,000 4.150 4.180 4.230 (0.080) 4.180 (0.030) I-Oct-201O I ,390,000 4.250 4.290 4.350 (0.100) 4.280 (0.030) I-Oct-2011 1,450,000 4.360 4.390 4.450 (0.090) 4.380 (0.020) I-Oct-2012 1,515,000 4.510 4.510 4.560 (0.050) 4.510 I-Oct-2013 1,590,000 4.630 4.630 4.680 (0.050) 4.610 0.020 I-Oct-2014 1,670,000 4.730 4.730 4.780 (0.050) 4.710 0.020 I-Oct-2015 1,750,000 4.830 4.830 4.880 (0.050) 4.810 0.020 I-OCI-2016 1,830,000 4.900 4.900 4.950 (0.050) 4.880 0.020 I-Oct-2017 1,915,000 4.970 4.960 5.010 (0.040) 4.940 0.030 I-Oct-2018 2,015,000 5.010 5.010 5.060 (0.050) 4.990 0.020 I-Oct-2019 2,1/5,000 5.050 5.080 5.110 (0.060) 5.030 0.020 I-OCI-2020 2,220,000 5.080 5.100 5.140 (0.060) 5.060 0.020 BYWAY 24,460,000 4.758 4.770 4.817 4.747 - - - - ~ 8PFi\1 17 -- ~ - - - - - - - - - - - - - -, - - - - -: Recent Florida Comparables Delphis/MMD Yield Comparison Issuer Orlando Utilities Commission Call Provisions 10/1/11 @ Par Type of Issue Subordinate Water and Electric Refunding Bonds Dated Date I-Jul-2ool Par Amount 37,040,000 Sale Date II-Jul-2ool Rating Moody's Aa2, S&P AA- and Fitch AA Delivery Date I 9-Jul-2oo I Insurer None Gross Spread $5.04 Sale Type Competitive Spread to Delphis (0.031 ) Spread to MMD AAA I (0.007) I Estimated Delphis 99.14 Delohis Comoarison MMD Comoarison Bond Delphis Scales Spread to MMD AAA Spread to Date Princival Yield lOa 98 98 Scale MMDAAA I-Oct-2oo2 125,000 2.500 2.650 2.700 (0.200) 2.630 (0.130) I-Oct-2oo3 135,000 3.000 3.050 3.100 (0.100) 3.090 (0.090) I-Oct -2004 140,000 3.290 3.350 3.410 (0.120) 3.380 (0.090) I-Oct-2oo5 145,000 3.480 3.550 3.600 (0.120) 3.570 (0.090) I-Oct - 2006 150,000 3.630 3.700 3.750 (0.120) 3.720 (0.090) I-Oct-2oo7 155,000 3.810 3.880 3.930 (0.120) 3.900 (0.090) I-Oct-2oo8 160,000 3.960 4.010 4.060 (0.100) 4.060 (0.100) I-Oct-2oo9 170,000 4.080 4.130 4.180 (0.100) 4.180 (0.100) I-Oct-201O 175,000 4.180 4.270 4.330 (0.150) 4.280 (0.100) I-Oct-2011 2,845,000 4.320 4.370 4.430 (0.110) 4.380 (0.060) I-Oct-2012 2,970,000 4.480 4.460 4.510 (0.030) 4.510 (0.030) I-Oct-2013 3,120,000 4.580 4.580 4.630 (0.050) 4.610 (0.030) I-Oct-2014 3,285,000 4.710 4.680 4.730 (0.020) 4.710 I-Oct-2015 3,445,000 4.810 4.780 4.830 (0.020) 4.810 I-Oct-2016 3,625,000 4.880 4.850 4.900 (0.020) 4.880 I-Oct-2017 3,800,000 4.940 4.910 4.960 (0.020) 4.940 I-Oct-2018 3,995,000 5.000 4.960 5.010 (0.010) 4.990 0.010 I-Oct-2019 4,195,000 5.030 5.000 5.060 (0.030) 5.030 I-Oct - 2020 4,405,000 5.060 5.030 5.090 (0.030) 5.060 BYWA Y 37,040,000 4.842 4.819 4.872 4.849 ..oii\\F=- gPFM 18 ~- - - - - - - - - - - - - Recent Florida Comparables - - - Issuer Type of Issue Par Amount Rating Insurer Sale Type Spread to Delphis Estimated Delphis Delphis/MMD Yield Comparison S. Indian River, Florida Water and Sewer Revenue Bonds 7,655,000 S&P AAA FSA Negotiated Call Provisions Dated Date Sale Date Delivery Date 111111 I @ Par 15-Jun-2001 9-Jul-200 I 25-Jul-2001 G - - - - (0.005) 98.21 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 -Nov-2002 210,000 2.900 2.650 2.700 0.200 2.570 0.330 I -Nov-2003 340,000 3.150 3.070 3.1 20 0.030 3.100 0.050 I -Nov-2004 355,000 3.440 3.370 3.430 0.010 3.390 0.050 I -Nov-2005 365,000 3.630 3.570 3.620 0.010 3.580 0.050 I -Nov-2006 380,000 3.780 3.720 3.770 0.010 3.730 0.050 I -Nov-2007 390,000 3.960 3.920 3.970 (0.010) 3.910 0.050 I-Nov-2008 410,000 4.120 4.040 4.090 0.030 4.070 0.050 I -Nov-2009 425,000 4.240 4.160 4.210 0.030 4.190 0.050 I-Nov-201O 440,000 4.340 4.270 4.330 0.010 4.290 0.050 I-Nov-2011 460,000 4.440 4.370 4.430 0.010 4.390 0.050 I-Nov-20 12 480,000 4.570 4.520 4.570 4.520 0.050 I-Nov-20 13 505,000 4.680 4.640 4.690 (0.010) 4.630 0.050 I-Nov-20 14 525.000 4.780 4.740 4.790 (0.010) 4.730 0.050 I-Nov-20 15 555,000 4.880 4.840 4.890 (0.0 I 0) 4.830 0.050 I-Nov-2016 575,000 4.950 4.920 4.970 (0.020) 4.900 0.050 I-Nov-20 17 605.000 5.010 4.980 5.030 (0.020) 4.960 0.050 I-Nov-2018 635,000 5.060 5.030 5.080 (0.020) 5.010 0.050 BYWAY 7,655,000 4.648 4.602 4.653 4.597 19 - - - - - - - - - - - - - - - Recent Florida Comparables Issuer Type of Issue Par Amount Rating Insurer Sale Type Spread to Delphis Estimated Delphis DelphisIMMD Yield Comparison St. Lucie County, Florida Sales Tax Revenue Bonds 3,370,000 S&P AAA and Moody's AM FSA Negotiated Call Provisions Dated Date Sale Date Delivery Date 6/1/11 @ Par I-Jul-2001 9-Jul-2001 25-Jul-2001 - - - - 0.019 97.29 6 Delphis Comparison MMD Comparison Bond Delphis Scales Spread to MMD AAA Spread to Date Princioal Yield 100 98 98 Scale MMDAAA I-Jun-2003 210,000 3.160 3.070 3.120 0.040 3.100 0.060 I-Jun-2004 340,000 3.450 3.370 3.430 0.020 3.390 0.060 I-Jun-2005 355,000 3.640 3.570 3.620 0.020 3.580 0.060 I-Jun-2006 365,000 3.790 3.720 3.770 0.020 3.730 0.060 I-Jun-2007 380,000 3.970 3.920 3.970 3.910 0.060 I-Jun-2008 390,000 4.140 4.040 4.090 0.050 4.070 0.070 I-Jun-2009 410,000 4.260 4.160 4.210 0.050 4.190 0.070 I-Jun-20 10 425,000 4.360 4.270 4.330 0.030 4.290 0.070 I-Jun-2011 440,000 4.460 4.370 4.430 0.030 4.390 0.070 I-Jun-2012 460,000 4.590 4.520 4.570 0.020 4.520 0.070 I-Jun-20 13 480,000 4.710 4.640 4.690 0.020 4.630 0.080 I-Jun-20 14 505,000 4.810 4.740 4.790 0.020 4.730 0.080 I-Jun-20l5 525,000 4.920 4.840 4.890 0.030 4.830 0.090 I-Jun-2016 555,000 5.000 4.920 4.970 0.030 4.900 0.100 I-Jun-2018 605,000 5.110 5.030 5.080 0.030 5.010 0.100 I-Jun-2021 605,000 5.210 5.120 5.180 0.030 5.100 0.110 I-Jun-2026 605,000 5.280 5.220 5.280 5.170 0.110 I-Jun-2031 605,000 5.310 5.250 5.310 5.210 0.100 BYWAY 8,260,000 4.908 4.834 4.889 4.816 -- -- ilPFM 110 - ~ Spread to MMDAAA - - - - - - - - - - - -' - - - Recent Florida Comparables Delphis/MMD Yield Comparison Issuer Type of Issue Par Amount Rating Insurer Sale Type City of Venice, Florida Capital Improvement Revenue Bonds 5,120,000 FitchAAA and Moody's AAA FGlC Negotiated Call Provisions Dated Date Sale Date Delivery Date Non-Callable 7-Aug-2001 9-Jul-2001 7-Aug-2001 Spread to Delphis Estimated Delphis [3 0.040 96.43 Spread to MMD AAA Delphis Comparison MMD Comparison Bond Delphis Scales Spread to MMD AAA Spread to Date Princioal Yield 100 98 98 Scale MMDAAA I-Jul-2002 510,000 2.900 2.650 2.700 0.200 2.570 0.330 I-Jul-2003 575,000 3.170 3.070 3.120 0.050 3.100 0.070 I-Jul-2004 590,000 3.460 3.370 3.430 0.030 3.390 0.070 I-Jul-2005 615,000 3.650 3.570 3.620 0.030 3.580 0.070 I-Jul-2006 630,000 3.800 3.720 3.770 0.030 3.730 0.070 I-Jul-2007 705,000 3.980 3.920 3.970 0.010 3.910 0.070 I-Jul-2008 735,000 4.140 4.040 4.090 0.050 4.070 0.070 I-Jul-2009 760,000 4.260 4.160 4.210 0.050 4.190 0.070 BYWAY 5,120,000 3.933 3.842 3.893 3.858 - - - - 111 ------------------- Summary of Sale · Series 1991 maturities being refunded-Serial Bonds maturing 2002 through 2005 and Term Bonds maturing 2014 and 2021 · Savings levels for the Series 2001 Bonds easily exceeded targets. · Pricing of bonds was very favorable with respect to indices and other recent Florida issues. City of Winter Springs, Florida Water and Sewer Refunding Bonds, Series 2001 Sources Par Amount Accrued Interest Net Discount Existing Sinking Funds Total Sources 6,065,000.00 23,082.40 (11,109.95) 127,577.00 6,204,549.45 Uses: SLGS Purchases Cash Deposit Accrued Interest Cost of Issuance Underwriter's Discount Bond Insurance Surety Policy Total Uses 6,050,763.00 1.63 23,082.40 67,491.47 40,210.95 17,000.00 6,000.00 6,204,549.45 A=- :JPFM 112 -- "'IIlII!!!!=-