City of Palm Coast, Florida Mark P. Galvin Director Mark.Galvin@hilltopsecurities.com 450 S. Orange Avenue, Suite 460 Orlando, Florida 32801 407.426.9611 Tel January 13, 2017 CRA and Wastewater SRF Loan Refunding Summary City of Palm Coast, Florida

Redevelopment Refunding Revenue Note, State Road 100 Corridor Community Redevelopment Agency (CRA) Debt Profile CRA Redevelopment Refunding Revenue Note, Series 2012 Series 2014 (Taxable) Original Amount $5,448,000 $5,839,000 Par Outstanding $3,795,000 $5,230,000 Interest Rates 2.29% 4.44% Final Maturity 10/1/2024 10/1/2028 Max Annual Debt Service $527,639 $876,004 Callable Payment Date @ 101% Anytime @ 101% Debt Service Reserve None Purpose Refunding of Series 2009 Note and New Money Refund Certain Outstanding Promissory Notes Security CRA Revenues Lead Underwriter / Lender BB&T Ameris Bank Credit N/A Underlying Rating

Summary - Proposed Series 2014 CRA Note Rate Adjustment Ameris Bank Rate Adjustment - 3.45% interest rate: Palm Coast, Florida   Refunding Analysis of Outstanding Series 2014 CRA Bank Loan CRA - State Road 100 Corridor Scenario Redevelopment Impv. Ref. Rev. Note Refunding of Series 2014 (Ameris) Taxable - Uniform Savings Refunding Results Summary Cashflow Savings $409,045 Average Annual Savings $35,061 Present Value Savings $347,415 PV Savings as % of Refunded Bonds 6.64% Revenue Refunding Issue (Series 2017) Issuance Date 2/1/2017 Par Amount $5,230,000 Final Maturity 10/1/2028 All-In TIC 3.45% Max Annual Debt Service $866,911 Total Debt Service $6,655,460 Refunded Issue Summary (Series 2014) Par Refunded Maturities Refunded 2017-2028 Interest Rates 4.44% Call Dates & Price* anytime @ 101% $876,004 *Original call provision is at 101%. Assumes no call premium - rate adjustment only.

Revenue Refunding Note, Improvement and Ref. Refunding Bonds, Utility System Debt Profile – Senior Lien Debt Utility System Revenue Refunding Note, Series 2016 Improvement and Ref. Refunding Bonds, Series 2013 Original Amount $40,193,000 $89,600,000 Par Outstanding $39,347,000 $81,250,000 Interest Rates 2.48% 2.00%-5.00% Final Maturity 10/1/2036 Max Annual Debt Service $2,521,887 $6,805,000 Callable Anytime @ 100% 10/1/2023 @ 100% Debt Service Reserve None Purpose Refunding of Series 2007 Bonds Refunding of Series 2003 Bonds Security Net Revenues of the Utility System Sewer System and Water System Capital Facilities Fees Lead Underwriter / Lender Ameris Bank Barclays Credit N/A Underlying Rating NR/A+/A+

State Revolving Loan Fund Utility System Debt Profile – Subordinate Debt – Wastewater SRF Loans SRF Loan #WW903080 SRF Loan #WW903050 SRF Loan #WW90303S SRF Loan #WW90302S Original Amount $6,793,716 $14,186,092 $14,115,081 $2,657,848 Par Outstanding $3,698,188 $4,871,166 $7,103,524 $1,406,588 Interest Rates 2.54% 2.60% 2.71% Final Maturity 6/15/2028 6/15/2026 12/15/2025 Max Annual Debt Service $372,855 $491,116 $848,708 $177,172 Callable Anytime @ 100% Debt Service Reserve None Purpose New Money Security Net Revenues of Utility System Lead Underwriter / Lender State Revolving Loan Fund Credit N/A Underlying Rating *Source – City of Palm Coast Finance Department

SRF Refunding Revenue Note Refunding of WW SRF Loans Proposed Refunding of Outstanding Wastewater SRF Loans CenterState Bank Loan Proposal - 2.35% interest rate: Palm Coast, Florida   Refunding Analysis of Outstanding Wastewater SRF Loans SRF Refunding Revenue Note Refunding of WW SRF Loans Uniform Savings Refunding Results Summary Cashflow Savings $146,916 Average Annual Savings $12,881 Present Value Savings $128,744 PV Savings as % of Refunded Bonds 0.76% Revenue Refunding Issue (Series 2017) Issuance Date 1/19/2017 Par Amount $17,163,000 Final Maturity 6/15/2028 All-In TIC 2.43% Max Annual Debt Service $1,876,422 Total Debt Service $19,420,047 Refunded SRF Summary (WW SRF Loans) Par Refunded $17,079,468 Maturities Refunded 2017-2028 Interest Rates 2.54%/2.60%/2.71% Call Dates & Price anytime @ 100% -Assumes SRF Loans can be paid off at Closing 1/19/2017