Public Resources Advisory Group City of Cocoa Beach Cocoa Beach Community Redevelopment Agency Florida Municipal Loan Council Series 2017B June 8, 2016

Resolution Summary CRA Resolution City Resolution Legal authority for CRA to enter into loan agreement CRA pledges TIF revenues Not to exceed amount $4,700,000 Mature no later than 10/1/2032 Approve form of Loan Agreement, Bond Purchase Contract, Continuing Disclosure Agreement, and Interlocal Agreement City Resolution Authorizes CRA to enter into loan and interlocal agreement City agrees to covenant and appropriate non-ad valorem revenues in the event pledged CRA TIF revenues are insufficient Approve form of Interlocal Agreement

Sources and Uses of Funds City of Cocoa Beach Bond Proceeds:   Par Amount $4,600,000.00 Net Premium/OID 63,655.95 4,663,655.95 $4,663,655.95 Uses: Project Fund Deposits: New Money $4,500,000.00 Delivery Date Expenses: Cost of Issuance 88,873.27 Underwriter's Discount 27,600.00 Bond Insurance (65 bps) 38,966.17 Surety Premium (2%) 8,216.51 160,144.18

Maximum Annual Debt Service Debt Service Schedule Maximum Annual Debt Service

Covenants CRA covenants to: City covenants to: Pledge TIF revenues for payment of debt service Only issue additional debt secured by TIF revenues if they exceed Maximum Annual Debt Service by 1.50x City covenants to: Appropriate legally available non-ad valorem revenues to pay debt service in the event CRA TIF revenues are insufficient Only issue additional debt secured by legally available non-ad valorem revenues if they exceed Maximum Annual Debt Service by 2.0x

Anti-Dilution Test Anti-Dilution Test Legally available Non-Ad Valorem Revenues must cover projected maximum annual debt service by at least 2.0x. Projected maximum annual debt service requirements will not exceed 20% of Governmental Fund Revenues, exclusive of ad valorem revenues restricted to payment of debt and any debt proceeds Maximum annual debt service means the lesser of the actual maximum annual debt service on all debt or 15% of the original par amount of the debt, secured by Borrower’s Non-Ad Valorem Revenues Anti-Dilution test must be met at loan closing and upon issuance of any other debt secured by Non-Ad Valorem Revenues

DRAFT Anti-Dilution Test Revenues FY2015 FY2016 Average Total Governmental Funds (A) 20,450,586 22,555,626 21,503,106 Less: Ad Valorem Revenues (7,102,087) (7,657,945) (7,380,016) Less: Restricted Funds (808,799) (633,475) (721,137) Available Non-Ad Valorem Revenues 12,539,700 14,264,206 13,401,953 Transfers from Enterprise Funds 810,270 1,643,333 1,226,802 Adjusted Non-Ad Valorem Revenues (B) 13,349,970 15,907,539 14,628,755 Expenditures Essential Expenditures General Government 4,032,592 3,975,646 4,004,119 Public Safety 9,252,083 8,593,542 8,922,813 Physical Environment 1,441,963 1,468,270 1,455,117 Total Essential Expenditures 14,726,638 14,037,458 14,382,048 Less: Ad-Valorem Revenues Available to pay Essential Expenditures Adjusted Essential Expenditures to Non Ad Valorem Revenues (C) 7,624,551 6,379,513 7,002,032 Net Non-Ad Valorem Revenues available for Debt Service (D) = B-C 5,725,419 9,528,026 7,626,723 Test 1 - Adjusted Net Non-Ad Valorem Revenues covers Proforma Non-Ad Valorem MADS by 2.0x Adjusted Net Non-Ad Valorem Revenues available for Debt Service (G) Proforma Maximum Annual Non-Ad Valorem Debt Service (H) (1) 681,874 Coverage (G / H) 11.18 Test 2 - Proforma MADS does not exceed 20% of Net Total Governmental Fund Revenues Net Total Governmental Fund Revenues (I) = A-F Proforma Maximum Annual Debt Service (J) Percentage (I / J) 3.17% DRAFT

Next Steps Finalize documentation Pricing and sale of bonds Closing

What is FMLC? Florida Municipal Loan Council Created by an interlocal agreement on December 1, 1998 Governed by a board of directors which consists of not less than one or more than seven elected public officials, each of which shall be appointed by the President of the Florida League of Cities, Inc. Issues bonds to provide loans to municipal borrowers Borrowers are only responsible for their individual payments

FMLC Advantages Provides Efficiencies Ongoing Services Reduce Costs of Issuance Reduce administrative burden Simplify process Negotiate better terms using economies of scale Ongoing Services Continuing Disclosure Requirements, including submission of annual reports to the MSRB Arbitrage rebate calculations/analysis Monthly Account Statements Investment Management Internal Reporting

FMLC Pool Exposure (by Borrower) Member Name Original Issue Outstanding Balance (9/30/16) Original Issue City of Belle Isle 2016 935,000 City of Valparaiso 2,405,000 City of Haines City 2005B 755,000 Gadsden County 2006A 1,080,000 2007A 5,195,000 Town of Bay Harbor Islands 3,085,000 City of Hallandale Beach 9,350,000 Town of Eatonville 850,000 City of Hialeah 2005A 5,895,000 Town of Lake Park 3,660,000 City of Indian Shores 1,195,000 Town of Melbourne Beach 1,190,000 City of North Miami 2,265,000 Town of Oakland 1,845,000 City of Parkland 2005D 1,125,000 Town of Southwest Ranches 2001A 3,345,000 City of Port Richey 3,055,000 Village of Palmetto Bay 290,000 City of St. Augustine Beach 2016ABCD 6,420,000 TOTAL Outstanding Balance (9/30/16): $53,940,000