Okaloosa County BOCC — February 17, 2015 — (2015 02 17) Okaloosa County FL - Water and Sewer Refunding Presentation — reading text

Administration Building. C O U N T Y , o Eliminate the provisions regarding bond insurer imposed restrictions, including minimum ratings for future bond insurers and debt service reserve surety policy providers. F L O R I D A Member FINRA/SIPC/NYSE 5 © 2015 First Southwest Company, LLC. All Rights Reserved  Series 2015 Refunding Assumptions • Sizing Assumptions: o Refund the Series 2004, 2006 and 2012 Bonds/Note o Release Existing Debt Service Reserves on all three Issues Totaling over $7.4 million o Provide $3,000,000 of New Money to Accelerate the Meter Replacement Program o No Debt Service Reserve due to the Strong Credit Ratings of the Water and Sewer System o Provide for Level Annual Debt Service Savings over the Life of the Bonds o Underlying Ratings: Aa3 / AA- (Moody’s & Fitch Rating Services) o First Interest Payment Date July 1, 2015 O K A L O O S A o First Principal Payment Date July 1, 2015 o Final Maturity Date July 1, 2036 (same as existing debt) o Estimated Interest Rates / Yields as of February 11, 2015 C O U N T Y , F L O R I D A . Member FINRA/SIPC/NYSE 6 © 2015 First Southwest Company, LLC. All Rights Reserved  Summary of Refunding Options (2,3,4) (2,3,4) Option 1 Option 2 Options (1) Refunding 2004, 2006, 2012, Refunding 2006 Only Refunding 2004, 2006, & 2012 & New Money ($3 Million) Refunding Savings Total Savings $6,719,015 $18,803,116 $14,588,264 Average Annual Savings (2016-2036) $318,983 $887,579 $688,496 Present Value Savings $4,733,191 $6,032,602 $6,000,916 Present Value Savings % 8.37% 7.43% 7.33% Release of Debt Service: No Yes Yes (4) Debt Service Transfer Amount: - $7,435,510 $7,435,510 Refunding Bonds Detail (Series 2015) O K A L O O S A Dated Date 4/22/2015 4/22/2015 4/22/2015 Final Maturity 7/1/2036 7/1/2036 7/1/2036 Bond Proceeds $60,113,093 $75,107,730 $78,121,751 New Money Proceeds - - $3,000,000 All-Inclusive Cost 3.37% 3.20% 3.21% C O U N T Y , - Results are Preliminary and Subject to Change. - Uninsured Aa3/AA-(Fitch) Market Rates as of 2/11/2015 - Estimated Cost of Issuance Expenses of $450k and $5/bond Underwriter's Discount (1) - Assumes Current Composite Debt Service Reserve would Secure the 2015 Bonds. Refunding a portion of the Series 2006 Bonds, leaving $4.36 million oustanding. F L O R I D A (2) - Assumes a Portion of the Series 2004 & 2006 DSRF will be Transferred into the Escrow to Defease the Non-Advance Refundable Portion (3) - Assumes Transfer of Existing Debt Service Reserves from 2004, 2006, & 2012 Issues. ($7.435 Million) (Includes the 4/25/2015 DSRF Funding Payment) (4) - $4.035 Million of the Current Debt Service Reserve will be used to Defease the Non-Advance Refundable Portion of the Series 2006 Bonds Member FINRA/SIPC/NYSE 7 © 2015 First Southwest Company, LLC. All Rights Reserved Steps  BCC approves financing plan and selects refunding options.  Bond Counsel prepares new Bond Resolution authorizing the issuance of the Water and Sewer Refunding Bonds.  Consultants prepare Engineering Report and a Feasibility Report  Financing team develops the Preliminary Official Statement which will be used to market the Series 2015 Bonds.  Obtain Bond Ratings O K A L O O S A  Finalize all Documents for the Board’s final approval (April 7th meeting)  Subject to Board Approval, lock in rates and yields  C O U N T Y , Close and transfer of funds F L O R I D A Member FINRA/SIPC/NYSE 8 © 2015 First Southwest Company, LLC. All Rights Reserved Financing Team Financing Team Bond Counsel and Disclosure Counsel – Nabors, Giblin and Nickerson Financial Advisor – First Southwest Company Bond Underwriter’s – Crews and Associates and RBC Capital Markets Feasibility Consultant – Burton and Associates O K A L O O S A Engineering Consultant – Constantine Engineering, Inc. C O U N T Y , County Staff: Jeff Littrell, Greg Steward and Gary Stanford F L O R I D A Member FINRA/SIPC/NYSE 9 © 2015 First Southwest Company, LLC. All Rights Reserved Preliminary Timetable • Approval of Documents by Commission April 7th • Print and Mail POS April 10th • Price and Award Bonds Wk of April 13th • Closing and Transfer of Funds Wk of April 20th O K A L O O S A C O U N T Y , F L O R I D A Member FINRA/SIPC/NYSE 10 © 2015 First Southwest Company, LLC. All Rights Reserved