DEBT SERVICE BUDGET. This section is organized in the following manner: Page. Debt Service Budget 6-1. Debt Service Budget Fund Summary 6-2

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1 DEBT SERVICE BUDGET Local governments traditionally issue debt to pay for capital projects for several reasons. First, the cost of these projects is normally too high to absorb into an annual budget. Second, due to inflationary increases, the cost of delaying a project until it can be financed on a pay-as-you-go basis can approach the costs of financing. Third, financing spreads the cost of the project to future populations who also benefit from the use of the facility or improvement paid for with the borrowed funds. The revenue sources pledged to debt costs are diverse. There are two outstanding "general obligation" bond issues, which are funded through voter-approved property tax levies. Debt service issues from enterprise agencies pledge a specific unique source such as water and sewer charges, or airport rents and landing fees. The County has also issued long-term debt, which pledges other "non-ad valorem revenue" sources including sales taxes, state revenue sharing, interest earnings, and other miscellaneous fees and charges. The Courthouse Bonds utilize non-ad valorem revenue sources as the primary pledge. The total net debt service budget is approximately $73.6 million, which is 18% less than the modified FY18 debt service budget of $858.3 million. The change in debt service is primarily due to the net $86.4 million decrease in the Aviation debt service due to a decrease in reserves and an increase related to Series 219 bonds that will be issued during, and the $7.2 million decrease in debt service attributable to the refunding of the 25 Loan Pool and 21 Courthouse Bonds. The remaining variances in debt service budgets reflect programmed changes in debt service schedules. This section is organized in the following manner: Page Debt Service 6-1 Debt Service Fund Summary 6-2 Debt Service Appropriations Overview 6-3 Debt Service Revenue Summary 6-4 Bonded Debt Per Capita 6-6 Debt Service - Bond Issue Descriptions

2 DEBT SERVICE FUND SUMMARY GENERAL DEBT SERVICE FY18 Modified 27A Libraries General Obligation Refunding Bonds 11,95,25 11,95,88 27B/212 Parks/Land Preservation General Obligation Refunding Bonds 22,95,3 22,95,38 25 Loan Pool and 218 Refunding Revenue Note 5,836,48 68,4 26B and 216 Civic Arena Refunding Bonds 33,268,42 36,13,53 21 and 217A Courthouse Refunding Bonds 9,193,12 25,173,39 Subtotal General Debt Service 164,153,57 96,768,58 Less Transfers (16,641,89) (19,5,21) General Debt Service (Net of Transfers) 147,511,68 77,268,37 ENTERPRISE DEBT SERVICE Aviation Bonds 599,597,13 513,277,94 Port Everglades Bonds 31,658,38 33,223,34 Water and Wastewater Bonds 79,537,27 79,821,75 Subtotal Enterprise Debt Service 71,792,78 626,323,3 All Debt Funds (Including Transfers) $874,946,35 $723,91,61 Less Transfers (16,641,89) (19,5,21) TOTAL DEBT SERVICE (Net of Transfers) $858,34,46 $73,591,4 6-2

OVERVIEW OF DEBT SERVICE APPROPRIATIONS Water and Wastewater, 11.4% Port Everglades, 4.59% General Fund Non-Ad Valorem,.9% Courthouse Bonds, 3.48% General Obligation, 4.82% Civic Arena, 5.

3 OVERVIEW OF DEBT SERVICE APPROPRIATIONS Water and Wastewater, 11.4% Port Everglades, 4.59% General Fund Non-Ad Valorem,.9% Courthouse Bonds, 3.48% General Obligation, 4.82% Civic Arena, 5.% Aviation, 7.98% Debt Service Reserves Transfers 27A Libraries GO Refunding Bonds 11,95,88 11,95,88 27B/212 Parks/Land Pres. GO Ref. Bonds 22,95,38 22,95,38 25 Loan Pool and 218 Refunding Rev. Note 68,4 68,4 26B and 216 Civic Arena Refunding Bonds 12,63,32 4,, 19,5,21 36,13,53 21 and 217A Courthouse Refunding Bonds 14,63,7 1,569,69 25,173,39 Aviation Bonds 182,167,9 331,11,4 513,277,94 Port Everglades Bonds 22,896,35 1,326,99 33,223,34 Water and Wastewater Bonds 36,142,4 43,679,35 79,821,75 TOTAL DEBT SERVICE $33,95,33 $399,686,7 $19,5,21 $723,91,61 6-3

4 DEBT SERVICE REVENUE SUMMARY GENERAL DEBT SERVICE Taxes Charges 27A Libraries GO Refunding Bonds 11,95,88 12,334, 27B/212 Parks/Land Pres. GO Ref. Bonds 22,95,38 23,625,97 25 Loan Pool and 218 Refunding Rev. Note 68,4 26B and 216 Civic Arena Refunding Bonds 36,13,53 21 and 217A Courthouse Refunding Bonds 25,173,39 General Debt Service $96,768,58 $35,959,97 $ ENTERPRISE DEBT SERVICE Aviation 513,277,94 121,687, Port Everglades 33,223,34 23,755,16 Water and Wastewater 79,821,75 34,87,73 Enterprise Debt Service $626,323,3 $ $18,312,89 TOTAL DEBT SERVICE $723,91,61 $35,959,97 $18,312,89 6-4

5 DEBT SERVICE REVENUE SUMMARY (continued) Fund Other Less 5% Transfers Balance 35,35 (618,47) 2, 63,9 (1,184,49) 4, 68,4 2,685,32 (134,27) 28,379,48 5,2, 2,77,37 12,15,25 1,36,77 $6,1,34 ($1,937,23) $4,484,73 $16,16,77 48,627,46 (171,57) 343,135,5 346,26 (1,25,7) 1,326,99 1,338,6 (66,93) 43,679,35 $5,312,32 ($1,443,57) $ $397,141,39 $56,412,66 ($3,38,8) $4,484,73 $413,32,16 6-5

6 As seen in the following charts, Broward County continues to maintain favorable General Obligation Debt ratios. BONDED DEBT PER CAPITA (as of October 1st) General Obligation General Obligation Fiscal Year Debt Population Debt Per Capita ,655, 1,579, ,88, 1,623, ,175, 1,653, ,2, 1,678, ,95, 1,71, ,14, 1,722, ,65, 1,742, ,775, 1,747, ,92, 1,741, ,615, 1,739, ,33, 1,738, ,665, 1,748, ,215, 1,753, ,5, 1,771, ,39, 1,783, ,335, 1,79, ,235, 1,784, ,25, 1,83, ,64, 1,827, ,155, 1,883, ,575, 1,921, RATIO OF BONDED DEBT TO ASSESSED VALUE General Ratio Debt/ Fiscal Obligation Assessed Property Year Debt Value Value ,655, 64,855,561,395.49% 2 292,88, 69,579,998,9.42% 21 45,175, 74,984,33,876.54% ,2, 81,987,37,728.45% ,95, 91,14,63,162.37% ,14, 11,79,83,191.48% ,65, 113,935,918,177.54% ,775, 132,,679,684.44% ,92, 157,396,26,36.34% ,615, 175,937,539,663.28% ,33, 166,433,893,384.27% ,665, 148,81,59,176.26% ,215, 129,964,271,186.27% ,5, 126,414,14,99.26% ,39, 127,87,774,573.24% ,335, 132,15,781,266.22% ,235, 14,996,733,219.19% ,25, 15,678,233,275.16% ,64, 162,958,452,859.13% ,155, 177,31,192,592.11% ,575, 189,462,414,522.9% 6-6

7 Libraries 27A General Obligation Refunding Bonds To refinance a portion of the Series 21A General Obligation Bonds, which provided funding to construct, renovate, improve, and equip new and expanded libraries. The debt service costs for those projects are supported with ad valorem taxes and interest income. FY17 Actual FY18 Ad Valorem Taxes Income Less 5% Fund Balance 11,896,44 8,73 12,57,21 9, 12,334, 35,35 (628,96) (618,47) 213, 2, 12,118,143 11,95,25 11,95,88 Other Costs 9,54, 2,44,5 1,15 1,3, 1,545, 1,915,25 1,4,88 5, 5, 11,945,65 11,95,25 11,95,88 County voters authorized issuance of $139.9 million in General Obligation Bonds in March 1999 to construct, renovate, improve, and equip libraries countywide. Bonds were issued in 21. A portion of the 21A General Obligation Bonds were refunded in May 27. The refunding generated savings of more than $4 million over the original debt. The refunded rate is 5.3 percent, and interest payments are scheduled semi-annually in January and July. The Series 21A bonds were repaid in fiscal year 212, leaving remaining payments on the Series 27A bonds. The debt will be completed in fiscal year

8 Parks and Land Preservation Series 27B and 212 General Obligation Refunding Bonds These Bonds provided funding to purchase and restore various forms of environmentally sensitive lands, and for the renovation and expansion of Broward County regional and neighborhood parks. The debt service costs are funded by ad valorem taxes and interest income. FY17 Actual FY18 Ad Valorem Taxes Income Less 5% Fund Balance 22,865,369 24,77,95 23,625,97 26,76 32,89 63,9 (1,25,54) (1,184,49) 363, 4, 23,255,75 22,95,3 22,95,38 Other Costs 14,945, 7,95,7 3,45 15,55, 16,18, 7,35,3 6,72,38 5, 5, 22,899,15 22,95,3 22,95,38 County voters authorized the issuance of General Obligation Bonds in November 2 for parks projects and land acquisitions not to exceed $4 million. Up to $2 million was approved for land acquisition and up to $2 million was approved for park system expansion and improvements. In 24, $187,77, was issued for 2 years. In 25, $154,135, was issued for 2 years, for a total of $341,95, of debt. The bond issue was reduced from the $4 million authorized by voters due to the accrual of tax dollars, which occurred in the period after the voter approval and before the debt was issued. A portion of the Series 24 Parks and Land Preservation General Obligation Bonds was refunded in FY7, yielding a savings exceeding $2.6 million over the term of the loan. rates of the refunded series range between 4.1 and 4.2 percent. The Series 24 bonds were fully refunded in fiscal year 212 and the Series 25 bonds were repaid in fiscal year 216, leaving remaining payments on the Series 27B and 212 bonds. A portion of the Series 24 and 25 Parks and Land Preservation General Obligation Bonds was refunded in FY12, yielding a present value savings of $11.4 million over the term of the loan. rates of the refunded Series range between 2 and 5 percent. Payments are scheduled semi-annually in January and July. The debt will be completed in fiscal year

9 25 Loan Pool and Series 218 Refunding Revenue Note To refinance a portion of the 2 loan attributable to the completion debt for the Civic Arena Project. The cost is entirely supported by payments from the Broward County Civic Arena. In 218, Series 218 Refunding Revenue Note was issued to refund the remaining portion of the Series 25B bonds. FY17 Actual FY18 Modified Income Reimbursement from Arena Operator Transfer from Arena Debt Service Fund Loans Issued , ,48 68,4 1, 15, 5,2, 634,326 5,836,48 68,4 Other Costs Bond Issuance Costs Payment to Refunded Bond Escrow Agent 335, 35, 42, 289, ,48 183,4 13,71 15, 5, 4,35 5,159,65 637,934 5,836,48 68,4 The Florida Panthers are obligated by various agreements to pay the debt service associated with this borrowing. The portion of the original 2 Loan attributable to the completion debt for cost increases on the Broward County Civic Arena was refunded in FY5. Refunding has yielded savings of $482, over the previous loan. paid on the refunding averages 5 percent. The remaining portions of the 25B Series bonds were refunded in fiscal year 218, providing an average annual savings of $33,25, for a total savings of approximately $365,73. The Refunding Revenue Note interest rate is 3.7% and the payments are made semi-annually in March and September. Payments will be concluded in fiscal year

10 Series 26B and 216 Civic Arena Refunding Bonds To refinance the 1996 Broward County Civic Arena Bonds. The 26 Civic Arena Refunding Bonds are primarily payable from the Professional Sports Franchise Facilities Taxes, the Professional Sports Franchise Sales Tax Rebate, a portion of the County's share of arena operating income, and investment earnings. These bonds are backed by a secondary pledge of County non-ad valorem revenues to cover debt service shortfalls if necessary. In 217, 216 Series Refunding Bonds were issued to refund the remaining portions of the 26A Series Bonds. Income Reimbursement from Arena Operator Less 5% Bond Issued - Refunding Premiums on Bonds Issued Transfer from Two Cent Tourist Tax Revenue Fund Fund Balance FY17 FY18 Actual 35,557 6, 6, 2,62,794 2,621,53 2,625,32 (134,8) (134,27) 71,99, 11,813,227 27,34,87 25,32,97 28,379,48 6,934, 5,4, 5,2, 119,87,385 33,268,42 36,13,53 Other Costs Bond Issuance Costs Payment to Refunded Bond Escrow Agent Transfer to Convention and Visitor's Bureau Transfer to 25 Loan Pool Reserve for Arena Trustee 6,835, 7,295, 7,685, 5,227,794 5,326,53 4,94,32 3,5 5, 5, 688,687 83,98,633 16,728,8 16,626,89 19,5,21 1, 15, 4,, 4,, 113,41,694 33,268,42 36,13,53 The Civic Arena is a multi-purpose sports and entertainment facility, which serves as the home ice of the Florida Panthers Hockey Club (a National Hockey League franchise). The Civic Arena Bonds are secured with two primary pledged revenue sources. The Professional Sports Franchise Facilities Tax is a two percent transient lodging tax ("Bed Tax") imposed on the same base as Tourist Development Taxes. The Professional Sports Franchise Sales Tax Rebate consists of $2 million received annually from the Florida Department of Revenue for facilities associated with new professional sport franchises. These two revenues are transferred from the Two Cent Tourist Tax Revenue Fund. Surplus two cent tourist taxes are transferred to the Convention and Visitor's Bureau Fund for marketing the destination in accordance with Florida Statutes. The remaining portions of the 26A Series bonds were refunded in fiscal year 217, providing an average annual savings of approximately $1.4 million, for a total savings of approximately $14.7 million. The interest rates range between.9 and 6 percent with payments scheduled semi-annually in March and September. Payments will be concluded in fiscal year

11 Series 21 and 217A Courthouse Refunding Bonds To provide financing for the construction of a replacement Courthouse. Half-cent sales tax revenues are pledged for the repayment of these bonds. Income Annual Rebates from the Federal Government Transfer from General Fund Transfer from Court Facility Fee Fund Bond Issued - Refunding Fund Balance FY17 FY18 Actual Modified 23,199 2,77,367 2,697,15 2,77,37 1,859,73 9,899,89 8,8, 2,377,86 3,433,8 3,35,25 63,985, 9,983, 1,178, 1,36,77 25,951,156 9,193,12 25,173,39 Other Costs Bond Issuance Costs Payment to Refunded Bond Escrow Agent Reserve Trustee Debt Service Payment 4,165, 4,47, 4,795, 11,544,528 1,593,43 9,82,7 3,45 6, 6, 188,275 64,531,982 1,43,46 1,569,69 15,712,978 9,193,12 25,173,39 The County issued $218 million in revenue bonds in June 21. The bonds will be retired in October 24. payments are paid semi-annually in October and April and are based on interest rates ranging from 2.6 to 6.6 percent. The 21 Courthouse Bonds were issued to complete the funding package for the replacement of the outdated central and west wings of the existing main courthouse. The bonds are supplementing existing funds from the General Capital Outlay Fund. The total cost of the replacement courthouse and parking garages is projected at $319 million. This debt service is funded with transfers from the General Fund, the Court Facility Fee Fund, and annual rebates from the federal government. A portion of the 21A Series bonds was refunded in fiscal year 218, providing an average annual savings of approximately $1 million, for a total savings of approximately $2 million. 6-11

12 Aviation Debt Service To provide funds for the expansion and improvement of airport facilities, runways, and land at the Fort Lauderdale/Hollywood International Airport. FY17 Actual FY18 Passenger Facility Charges State Grants Federal Grants Loans Issued Earnings Less 5% Operating Revenue Fund Balance 34,892,742 34,891,97 25,899,96 11,438,227 18,, 51,822, 45,196,1 1,79,788 4,131,83 3,431,36 (26,59) (171,57) 69,281,337 95,773,98 95,787,4 413,183,94 343,135,5 135,43,94 599,597,13 513,277,94 Other Debt Service Costs Reserve for Future Debt Service Payments¹ Debt Service Reserve 73,417,248 16,151,78 112,481,6 53,84, 63,62, 67,1, 3,737,49 2,676,3 276,768,74 16,811,1 149,319,12 17,299,3 127,257, ,597,13 513,277,94 ¹ This represents funding for future principal and interest payable on Airport System Revenue Bonds issued for the South Runway Expansion project and capitalized interest payments for the Series 217 and Series 219 Bonds. The total amount of outstanding debt as of FY18 is $2,9,715, (based on current debt). The increase in budgeted interest and other debt service costs for relates to the Series 219 to be issued during. The decrease in the Reserve for Future Debt Service Payments is due to planned reductions in this reserve, as funds set aside for this purpose are used to make debt service payments. The increase in the budgeted Debt Service Reserve is primarily due to the increased reserve requirement associated with the anticipated 219 bond issuance. The "Loans Issued" budgeted in ($45,196,1) is for bond issuance costs and an increase in required bond reserves. 6-12

13 Airport System Revenue Refunding Bonds, Series 29O refunded the outstanding debt on Series 28N. paid on the Series O bonds ranges from 2 percent to 5.4 percent. and interest payments for Series O will be paid from airport system revenues and continue until calendar year 229. Airport System Revenue Bonds, Series 212P refunded the outstanding debt on the following bond series, resulting in net present value savings of approximately $39.9 million over 15 years: Airport System Revenue Refunding Bonds, Series 1998E, issued for $75.6 million, which defeased the outstanding debt of Series B Airport System Revenue Bonds, Series 1998G issued for $63.5 million Airport System Revenue Bonds, Series 21J1 (taxable) issued for $136 million Passenger Facility Charge/Airport System Revenue Convertible Lien Bonds, Series 1998H issued for $126.6 million Passenger Facility Charge/Airport System Revenue Convertible Lien Bonds, Series 21I issued for $41.9 million Part of Airport System Revenue Bonds, Series 24L issued for $142 million paid on the Series P bonds ranges from 3 percent to 5 percent. and interest payments continue until calendar year 226. Airport System Revenue Bonds, Series 212Q provided $621.3 million toward the South Runway Expansion project, terminal renovations, ground transportation facilities, maintenance building, utilities, taxiway repairs, and land acquisition. paid on the Series Q bonds ranges from 3 percent to 5 percent. and interest payments continue until calendar year 242. Airport System Revenue Bonds, Series 213A-B-C provided $431.7 million for the balance of the runway 9R/27L project, Terminal 4 (Concourse G and ramp), Terminal 1 (Concourse A), terminal renovations, and ground transportation land and facilities. paid on the Series A-B-C bonds ranges from 1.3 percent to 5.5 percent. and interest payments continue until calendar year 243. Airport System Revenue Bonds, Series 215A-B provided $418 million toward Terminal 4 (Concourse G and the Federal Inspection Services [FIS]), terminal renovations, Concourse A (T-1), ground transportation facilities, utilities, public safety facility, rehabilitation of the Rental Car Center/garages, and terminal roadways. and interest payments continue until calendar year 245. Airport System Revenue Bonds, Series 215C refunded the outstanding remaining debt on the Airport System Revenue Bonds, Series 24L, resulting in net present value savings of approximately $8.3 million. paid on the Series 215C bonds ranges from 2 percent to 5 percent. and interest payments continue until calendar year 225, two years earlier than the Series 24L that was refunded. Airport System Revenue Bonds, Series 217 provided $3 million toward terminal renovations, Concourse A (T-1), Concourse G (T-4), FIS (T-4), and design for additional gates and terminal connectors. and interest payments are expected to continue until calendar year 247. Airport System Revenue Bonds, Series 219 will provide approximately $36 million toward terminal renovations, Concourse G (T-4), FIS (T-4), terminal connectors, gate expansion and major equipment replacement. and interest payments are expected to continue until calendar year 248. The Aviation Department anticipates future financing of approximately $3 million in FY21 for terminal renovations, terminal connectors, utilities, additional gates, passenger screening lanes and architectural services for Master Plan projects. 6-13

14 Port Everglades Debt Service Debt issues provide funds for the expansion and improvement of Port facilities and defeasance of prior bond issues. Debt service is funded from Port revenues. FY17 FY18 Actual Operating Revenues Income Less 5% Fund Balance 21,347, ,634 32,935,13 23,755,16 389,48 346,26 (1,666,23) (1,25,7) 1,326,99 21,563,415 31,658,38 33,223,34 Other Debt Service Costs Reserves 13,2, 13,645, 8,167,5 7,332,98 376, ,41 1,326,99 14,32, 8,195,15 381,2 1,326,99 21,563,415 31,658,38 33,223,34 The Port Facilities Refunding Revenue Bonds, Series 28 were issued in the amount of $46,16, to refund the outstanding Subordinate Port Facilities Refunding Revenue Bonds, Series 1998 with an outstanding principal of $43,16,, to fund a deposit to the Debt Service Reserve Fund, and to pay a portion of the termination payment related to the termination of the 1998 Rate Swap. paid on the Series 28 bonds is a 3.6 percent synthetic fixed rate per the interest rate swap agreement. The Series 28 bonds are due to retire in fiscal year 227. The Port Facilities Revenue Bonds, Series 29A (Non-AMT) (the "Series 29 Bonds") were issued by the County to fund the Terminal 18 expansion project and miscellaneous infrastructure improvements throughout the Port. The issue amount was $83,235,. paid on the Series 29 bonds ranges from 3 percent to 6 percent. The Series 29 bonds are due to retire in fiscal year 229. The Port Facilities Refunding Bonds, Series 211A (the Series 211A Bonds ) in the amount of $12,37,; Port Facilities Refunding Bonds, Series 211B (the Series 211B Bonds ) in the amount of $1,695,; and Port Facilities Refunding Bonds Series 211C (the Series 211C Bonds ) in the amount of $54,195, (collectively, the Series 211 Bonds ) were issued to (i) refund and defease all or a portion of the Series 1998B, 1998C, and Series 1989A Bonds, (ii) fund the cost of a municipal bond debt service reserve insurance policy, and (iii) pay certain costs of issuance and expenses relating to the Series 211 Bonds, including the premium for a municipal bond insurance policy. paid on the Series 211 bonds ranges from 1.1 percent to 5 percent. The Series 211 bonds are due to retire in fiscal year 227. In fiscal year 216, the repayment of Series 211C bonds occurred. 6-14

15 Water & Wastewater Debt Service To provide funds for the expansion and improvement of water and wastewater facilities. Debt service is supported by the net revenue of the water and wastewater fund, which includes user charges and interest income. Operating Charges Income Less 5% Fund Balance FY17 FY18 Actual 35,116,74 35,45,74 34,87,73 1,7,78 776,4 1,338,6 (38,82) (66,93) 42,952,5 43,393,95 43,679,35 79,75,94 79,537,27 79,821,75 Other Costs Reserves 14,34, 21,739,379 44,475 14,635, 15,25, 21,442,32 2,871,4 66, 66, 43,393,95 43,679,35 36,123,854 79,537,27 79,821,75 The Water and Wastewater debt service budget includes debt service payments for the following bond issues: The Series 29A Bonds totaling $5,255, are comprised of Revenue Bonds due serially on October 1, from 219 to 221 with interest at 2.5 percent to 4 percent. The Series 212A Bonds totaling $13,45, are comprised of $41,75, of Revenue Bonds due serially on October 1, from 219 to 233 with interest at 1 percent to 5 percent, and $89,33, of Term Bonds due on October 1, from 234 to 237 with interest at 5 percent. The Series 212B Bonds totaling $11,92, are comprised of Revenue Bonds due serially on October 1, from 219 to 227 with interest at 4 percent to 5 percent. The Series 215A Bonds totaling $42,255, were issued to refund the 25 Bonds and are comprised of Revenue Bonds due serially on October 1, from 228 to 23 with interest at 5 percent. The Series 215B Bonds totaling $157,555, were issued to refund a portion of the 29A Bonds and are comprised of Revenue Bonds due serially on October 1, from 221 to 234 with interest at 3 percent to 5 percent. 6-15

DEBT SERVICE BUDGET. This section is organized in the following manner: Page. Debt Service Budget 6-1. Debt Service Budget Fund Summary 6-2

DEBT SERVICE BUDGET. This section is organized in the following manner: Page. Debt Service Budget 6-1. Debt Service Budget Fund Summary 6-2 DEBT SERVICE BUDGET Local governments traditionally issue debt to pay for capital projects for several reasons. First, the cost of these projects is normally too high to absorb into an annual budget. Second,