Contacts
Mark Galvin
Senior Vice President
Mark.galvin@firstsw.com
450 S. Orange Avenue
Suite 460
Orlando, FL 32801
407.426.9611
407.426.7835 Fax
Utility System Workshop
Preliminary Financing Plan
October 30, 2012
CITY OF PALM COAST, FLORIDA
Table of Contents
Overview of City’s Utility System Debt
Tab 1
Refunding of Series 2003 Bonds
Tab 2
C
I T Y
O F
P
A L M
C
O A S T
,
F L ,
F
L O R I D A
2
Member FINRA & SIPC © 2012
First Southwest Company
Overview of the City’s Utility System Debt
Tab 1
C I T Y
O F
P ALM
C OAST,
F L O R I D A
Debt Profile – Utility System Revenue Debt
Utility System Revenue Bonds,
Series 2007
Original Amount
$99,650,000
$49,840,000
Principal Outstanding
$80,685,000
$45,725,000
Interest Rates
3.70% - 5.25%
3.625% - 5.25%
Final Maturity
10/1/2033
10/1/2036
A1 / A / A+
A1 / A / A+
10/1/2013 @ 100%
4/1/2017 @ 100%
MBIA / National
MBIA / National
Surety / $6,89,613 Cash
Surety / $3,131,256 Cash
Acquire FL Water Services System &
Fund System Improvements
Capital Improvements
$6,289,613
$3,131,256
Security
Net Revenues from Utility System &
Water & Sewer System Capital Facilities
Fees (Impact Fees)
Net Revenues from Utility System &
Water & Sewer System Capital Facilities
Fees (Impact Fees)
Additional Bonds Test
Net Revenues must equal at least to
110% Max. Annual Debt Service on the
outstanding and proposed senior lien
bonds
Net Revenues must equal at least to
110% Max. Annual Debt Service on the
outstanding and proposed senior lien
bonds
Member FINRA & SIPC © 2012
Underlying Rating
Callable
O F
Debt Service Reserve
I T Y
Credit
C
Utility System Revenue Bonds,
Series 2003
P
C
O A S T
,
Maximum Annual Debt Service (MADS)
- Level
A L M
Purpose
F L ,
F
L O R I D A
First Southwest Company
Aggregate Utility System Revenue Debt
Date
Series 2003
Debt Service
Series 2007
Debt Service
Total
Debt Service
F
L O R I D A
Member FINRA & SIPC © 2012
First Southwest Company
F L ,
5
,
$207,119,643
O A S T
$75,092,013
C
$132,030,639
A L M
Totals
P
$9,419,509
9,420,319
9,415,569
9,417,844
9,417,494
9,413,681
9,413,069
9,417,381
9,415,894
9,418,344
9,416,594
9,417,094
9,414,094
9,416,119
9,414,494
9,418,719
9,419,656
9,410,556
9,413,331
9,413,381
9,419,981
3,126,906
3,126,594
3,126,031
O F
$3,131,106
3,130,906
3,128,906
3,129,681
3,129,081
3,128,331
3,128,131
3,130,731
3,130,931
3,128,731
3,127,981
3,128,231
3,129,231
3,129,756
3,126,881
3,130,606
3,130,506
3,126,056
3,127,331
3,128,881
3,130,481
3,126,906
3,126,594
3,126,031
I T Y
$6,288,403
6,289,413
6,286,663
6,288,163
6,288,413
6,285,350
6,284,938
6,286,650
6,284,963
6,289,613
6,288,613
6,288,863
6,284,863
6,286,363
6,287,613
6,288,113
6,289,150
6,284,500
6,286,000
6,284,500
6,289,500
C
10/1/2013
10/1/2014
10/1/2015
10/1/2016
10/1/2017
10/1/2018
10/1/2019
10/1/2020
10/1/2021
10/1/2022
10/1/2023
10/1/2024
10/1/2025
10/1/2026
10/1/2027
10/1/2028
10/1/2029
10/1/2030
10/1/2031
10/1/2032
10/1/2033
10/1/2034
10/1/2035
10/1/2036
Debt Profile – Utility System Debt
City of Palm Coast, Florida
All Outstanding Utility System Senior Lien Revenue Debt
$10,000,000
$9,000,000
$8,000,000
$6,000,000
C
$5,000,000
I T Y
Debt Service
$7,000,000
O F
$4,000,000
P
A L M
$3,000,000
C
$2,000,000
O A S T
$1,000,000
,
F L ,
$0
F
Series 2007
L O R I D A
Fiscal Year End October 1
Series 2003
Member FINRA & SIPC © 2012
First Southwest Company
Refunding of Series 2003 Bonds
Tab 2
C I T Y
O F
P ALM
C OAST,
F L O R I D A
Summary of Refunding Results (Series 2003 Bonds)
Savings
Total Savings
Average Annual Savings
Present Value Savings
Present Value Savings %
$11,616,353
$553,160
$8,149,889
10.10%
Refunding Bonds Detail (Series 2012)
Assumes the City maintain it existing ratings of
A1, A/A+
Principal Amount
Average Annual Debt Service
10/1/2033
I T Y
All-In True Interest Cost
$5,734,014
C
Maturity
$73,800,000
3.55%
O F
Refunded Bonds Detail (Series 2003)
P
A L M
Principal Refunded
$80,685,000
Call Date/Price
10/1/2033 @ 100%
O A S T
4.50% - 5.125%
C
Coupon Rates
,
F
Notes
-Analysis is preliminary and subject to change.
-Estimated cost of issuance of $630 & $6 per bond for UW discount
-Uninsured A1/A/A+ market rates as of EOD 10/17/2012
Assumes no transfer of existing DSRF or funding of a DSRF for Series 2012 issue
L O R I D A
8
Member FINRA & SIPC © 2012
First Southwest Company
Refunding Considerations

City current Utility System 5 Year Capital Plan has identified over $78.4 million in
capital improvements including $21 million in immediate funding needs.

With interest rates at historical lows and with impending refunding of the Series 2003
provides the City incorporate both financings into one reducing issuance costs.

Opportunity to free up / release $6,240,000 from Series 2003 Debt Service Reserve
to fund a portion of the $21 million in projects with the $15 million balance coming
I T Y
P
Opportunity to update bond covenants to provide future financing flexibility.
O F

C
from bond proceeds.
A L M
C
O A S T
,
F
L O R I D A
9
Member FINRA & SIPC
© 2012 First Southwest Company
Summary of Financing – Proposed Financing Structure
Bond Details
Series 2013
Par amount*
Project fund amount
$88,130,000
$21,000,000 including released Series 2003 DSR Fund
Combined Maximum Annual Debt
Service* (Series 2013 & 2007)
$9,858,781
I T Y
10/1/2036
C
Final maturity*
O F
P
$435,000
A L M
Incremental debt service increase of
providing $21 million in project funding
C
O A S T
* Subject to change based upon market conditions (includes original issue premium of approximately $12 million.
,
F
L O R I D A
10
Member FINRA & SIPC
© 2012 First Southwest Company