1. Utility Revenue Bonds Series 2016 March 29th, 2016
Christopher Quinn, MACC, CPA, CFE, CGFO, CGMA
City of Palm Coast, Finance Director
Mark Galvin
FirstSouthwest, Director

2. Utility Revenue Bonds, Series 2016
Background:
2007
Utility System Revenue Bonds, Series 2007 approved to construct Water Treatment Plant 3 and associated well fields and pipelines
2016
Refinancing opportunities for the Utility System Revenue Bonds, Series 2007 presented to City Council for discussion

3. Existing Utility Revenue Bonds, Series 2007
Original Amount:
$49,840,000
Current Balance:
$42,200,000
Current Rates:
2-5%
Remaining Life:
20 years
Purpose:
Construction of Water Treatment Plant 3 and related infrastructure
Debt Service Reserve:
$3,131,000

4. City of Palm Coast, Florida
Utility System Revenue Refunding Bonds, Series 2016
Background:
On February 23rd, the City Council authorized Staff and the Financial Advisor to seek proposal from Banks and compare responses to a bond issue to make sure the rate and covenants are at least comparable.
RFP issued February 29th and closed March 14th and the City received 3 bids with Ameris being the lowest and best bid:
A rate of 2.48% lock in for the entire life of the loan (10/1/36)
Rate is good until April 22nd eliminating interest rate risk to the City
The ability to prepay at anytime without penalty
No additional Tax Gross up Language
Willing to accept existing bond covenants
Also compared their proposal to a bond issue:
Their rate was lower than a expected bond issue assuming rates as of March 14, 2016
More flexible prepayment, lower fees
No onerous bond covenants
Notes: Analysis is preliminary & subject to change. Bond Issue Scenarios assume A+ rated bonds and interest rates as of 3/14/2016.

5. City of Palm Coast, Florida
Utility System Revenue Refunding Bonds, Series 2016
Ameris – Bank Loan Proposal:
Scenario
Refunding Results Summary
Total Savings
12,416,149
Average Annual Savings
591,245
Present Value Savings ($)
6,508,081
Present Value Savings (%)
15.42%
Refunding Issue Summary (Series 2016)
Principal Amount
40,188,000
Maturity Date
10/1/2036
All-In TIC
2.52%
Maximum Annual Debt Service
2,524,954
Total Debt Service
51,720,104
Refunded Issue Summary (Series 2007)
Principal Amount Outstanding
42,200,000
Principal Amount Refunded
Maturities Refunded
Average Coupon Refunded
4.43%
Call Date/Price
4/1/2017
Notes: Analysis is preliminary & subject to change; Total Savings and Average Savings takes into consideration the use of $3,130, of the Series 2007 DSR to be used to in the Series 2007 Escrow.

6. City of Palm Coast, Florida
Utility System Revenue Refunding Bonds, Series 2016
Timetable:
March 29, 2016 – Approval of Documents by City Council
March 29, Lock in Escrow Securities / Finalize Loan issue size
April 19th- Pre-closing
April 20th Closing
Notes: Analysis is preliminary & subject to change; Total Savings and Average Savings takes into consideration the use of $3,130,000 of the Series 2007 DSR to be used to in the Series 2007 Escrow.

7. Utility Revenue Bonds, Series 2016
Next Steps:
Evaluate Refinancing Options
Bank Loan vs. Bond Issue
Select Best Option for City Council Consideration
Execute Bank Loan Agreement with Ameris Bank

8. Questions?