Daytona Beach, FL, City of 1 City of Daytona Beach, Florida General Obligation Refunding Bonds, Series 2012, $18,810,000 Dated: May 15, 2012 2 City of Daytona Beach, Florida Capital Improvement Revenue Bonds, Series 2011A, $33,460,000; Capital Improvement Revenue Bonds, Series 2011B, $2,160,000 Dated: June 23, 2011 Series 2012-GO Assessed Value and Estimated Actual Value of Taxable Property Total Taxable Residential Commercial Industrial Agricultural Institutional Governmental Vacant Land Tangible Total Less: Tax- Assessed Total Direct Fiscal Year Ended September 30 Property Property Property Property Property Property and Other Property Market Value Exempt Property Value Tax Rate 2015 2,205,004,032 1,183,636,481 137,619,000 91,816,451 225,150,182 797,265,895 321,853,997 661,241,912 5,623,587,950 2,195,874,518 3,427,713,432 7.3517 Series 2012-GO Direct and Overlapping Property Tax Rates Fiscal Daytona Beach St. Johns Year Downtown River Water Florida Inland Ponce Deleon Mosquito Total - All Daytona Development Volusia Volusia County Management Navigation Hospital Inlet and Port Control Taxing Beach Authority County School District District District District Authority District Districts 2015 7.35170 1.00000 7.27090 7.33600 0.31640 0.03450 1.00000 0.09290 0.18800 24.59040 Series 2012 GO Property Tax Levies and Collections Collected within the Fiscal Year of the Levy Collections in Total Collections to Date Taxes Levied Percent Subsequent Percent Year for Fiscal Year Amount of Levy Years Amount of Levy 2015 23,726,632 22,841,108 96.27% 290,801 23,131,909 97.49% Series 2012-GO Description of Any Material Litigation 2015 Series 2012-GO Any Other Financial Information or Operating Date Which the Issuer Determines would be Material to a Holder or Prospective Holders of the Certificates 2015
Pledged Tax Increment Revenues Assessed Total Assessed HBE Prime Assessed Taxable HBE Prime Area/Ocean Walk January 1 Taxable Value of Area/Ocean Walk Prime Area Tax Value of HBE Ocean Walk Prime Area Increment Prime Area Prime Area Taxable Value Revenues 2015 46,067,873 152,544,654 198,612,527 2,244,096 Millage Rate for the Main Street Redevelopment Area Fiscal Year Millage 2015 14.78450 Pledged Tax Increment Revenue Debt Service Coverage 2015 Taxable Value of Existing Base Ocean Walk Prime Area $ 152,544,654 HBE Prime Area 46,067,873 Total Taxable Value of Existing Base $ 198,614,542 Millage for Main Street Redevelopment Area 14.78450 Total Pledged Tax Increment Revenue $ 2,244,096 Total Main Street Redevelopment Area Tax Increment Revenue $ 3,544,073 Debt Service Coverage C-1 Loan Agreement Debt Service $ 2,513,756 Total Pledged Tax Increment Revenue Debt Service Coverage 0.89 Total Main Street Redevelopment Area Tax Increment Revenue Debt Service Coverage 1.41 Legally Available Non-Ad Valorem Revenues 2015 Revenues: Taxes: Occupational License $ 990,019 Franchise tax - Public Service Tax 10,520,534 Licenses and Permits: Occupational License - Franchise tax 6,108,348 Other 84,521 Intergovernmental: Half Cent Sales Tax 3,213,470 State Revenue Sharing 2,064,089 Other 918,388 Charges for services: Indirect Services 1,504,778 Public Safety 803,856 Transportation and Parking 124,051 Recreation and Culture 224,876 Other 597,627 Fines and forfeitures 575,955 Income on investments 345,922 Other 986,064 Net Transfers to General Fund 11,671,609 Total sources of Non-Ad Valorem Revenues $ 40,734,107
Debt Service Schedule For Non-Ad Valorem Revenue Obligations Source Principal Final Maximum Description of Security Amount Outstanding Maturity Annual Debt Service Capital Improvement Revenue Note, Series 2009 Non-Ad Valorem Revenue 25,542,000 November 1, 2028 3,652,350 Capital Improvement Revenue Note, Series 2010 Non-Ad Valorem Revenue 7,109,400 November 1, 2024 851,700 Capital Improvement Revenue Bonds, Series 2011A Non-Ad Valorem Revenue 28,545,000 February 1, 2031 2,537,656 Capital Improvement Revenue Bonds, Series 2011B Non-Ad Valorem Revenue 940,000 February 1, 2021 319,563 Anti-Dilution Test Calculation For Non-Ad Valorem Revenue Obligations 2015 Legally Available Non-Ad Valorem Revenues for Debt Service $ 40,734,106 Cost of Essential Services not covered by Ad Valorem Revenues 23,241,769 Balance Available for Debt Service $ 17,492,337 Maximum Annual Debt Service ("MADS") on debt secured by a lien on 3,124,013 Non-Ad Valorem Revenues Coverage Ratio 5.60 General Fund Revenues and Expenses 2015 REVENUES Taxes $ 36,576,755 Licenses and Permits 6,145,928 Intergovernmental 6,250,731 Charges for Services 3,398,436 Fines and forfeitures 575,956 Income on investments 345,921 Miscellaneous 844,329 TOTAL REVENUES $ 54,138,056 EXPENDITURES Current: General Government $ 5,349,782 Public Safety 41,952,658 Transportation 7,538,539 Economic Environment 1,331,143 Culture and Recreation 3,597,862 Capital Outlay 1,748,750 Debt service - Total expenditures $ 61,518,734 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES $ (7,380,678) OTHER FINANCING SOURCES (USES) Transfers in $ 16,032,427 Transfers out (4,360,819) Debt issuance 1,004,865 Total other financing sources (uses) $ 12,676,473 BEGINNING FUND BALANCE $ 10,806,284 ENDING FUND BALANCE $ 16,102,079 Reserved Portion $ 1,546,383 Unreserved Portion $ 14,555,696
LIABILITIES OF THE CITY Insurance Considerations Affecting the City Fiscal Year Ending Beg Balance Changes in Estimates Claims Paid Ending Balance 2015 9,594,000 1,877,916 (2,445,916) 9,026,000 Schedule of Employer Contributions for the Florida Retirements System (000 Omitted in dollar amounts) Employer Employee Total Annual Required Percentage Fiscal Year Contributions Contributions Contributions Contribution Contributed 2015 2,438,085 687,865 3,125,950 2,438,085 128.21% FRS Trust Fund Investment in Classes 2015 Global Equities 58.1% Fixed Income 19.8% Real Estate 8.3% Private Equity 6.0% Strategic Investments 6.9% Cash Equivalents 0.8% 100% Schedule of Funding Progress for the Florida Retirement System (000 Omitted in dollar amounts) Actuarial Actuarial Accrued UAAL As % of Actuarial Value of Liability (AAL) Unfunded ML Funded Ratio Covered Payroll Covered Payroll Valuation Date Assets (a) Entry Age (b) (UAAL) (b-a) (a/b) (c) (b-a)/c 7/1/2015 143,196,000 $ 165,549,000 22,353,000 86.50% 32,726,034 68.30% Market Value of Assets (000 Omitted in dollar amounts) Actuarial Market Accrued Funded Ratio (%) Year Value of Liability (AAL) (a/b) 2015 Assets (a) Entry Age (b) 147,972,946 $ 165,549,000 89.38% Summary of Accrued and Unfunded Actuarial Liabilities for the Florida Retirement System (000 Omitted in dollar amounts Actuarial Unfunded Annualized Unfunded Actuarial Accrued Valuation Funding Ratio Actuarial Payroll (Active Actuarial Valuation Date Liabilities Assets (Assets/Liabilities) Liability (UAL) Members) Liability/Payroll 7/1/2015 $ 165,549,000 143,196,000 86.50% $ 22,353,000 32,726,034 68.30%
Additional Information as of the Latest Actuarial Valuation Valuation Date July 1, 2015 Actuarial cost method Ultimate entry age normal Amortization method Level percent, closed Equivalent Single amortization period 30 years Asset valuation method 5-year Smoothing period Actuarial assumptions: Investment rate of return 7.65% Salary increases 3.25% Includes inflation at 2.60% Cost-of-Living Adjustments 3.00% The Funding Progress for the Police and Fire Plan Actuarial Market Actuarial Accrued UAAL As % of Actuarial Value of Value of Liability (AAL) Unfunded AAL Funded Ratio Covered Payroll Covered Payroll Valuation Date Assets Assets (a) Entry Age (b) (UAAL) (b-a) (a/b) (c) (b-a)/c 10/1/2015 159,486,586 167,159,869 224,117,581 56,957,712 75% 15,577,863 366% The Annual Pension Cost "APC" contributed to the Police and Fire Plan Annual Pension Percentage Net Pension Year Cost Contributed Obligation 2015 7,230,064 100% City and State Contribution Amounts Employee State City Investment Year Contributions Contributions Contributions Income Total 2015 1,601,259 919,409 6,310,655 (4,396,424) 4,434,899 The City's annual OPEB cost and the net OPEB obligation 2015 Annual required contribution (ARC) $ 312,971 Interest on the net OPEB obligation 203,304 Adjustment to the ARC $ (6,467) Total annual OPEB cost $ 509,808 Employer contributions $ (490,942) Interest on employer contributions - Increase in the net OPEB obligation $ 18,866 Net OPEB obligation-beginning of year $ 5,082,604 Net OPEB obligation-end of year $ 5,101,470 The City's Percentage of Annual OPEB Cost Contributed to the OPEB Plan, and the Net OPEB Obligation Percentage of Annual Net OPEB Year Annual OPEB Cost OPEB Cost Contributed Obligation 2015 $ 509,808 3.7% $ 5,101,470 The Funding Progress for OPEB UAAL As % of Actuarial Actuarial Actuarial Accrued Unfunded AAL Funded Ratio Covered Payroll Covered Payroll Valuation Date Value of Assets (a) Liability (AAL) (b) (UAAL) (b-a) (a/b) (c) (b-a)/c 10/1/14 - $ 5,680,000 $ 5,680,000 0.0% $ 44,344,000 13%
Direct Debt 2015 Principal Amount Principal Amount Issued Outstanding General Obligation Bonds Series 2012 $ 18,810,000 $ 16,030,000 Revenue Bonds Series 2011 A & B 35,620,000 29,485,000 Utility System Series 2012 54,450,000 47,115,000 Total Revenue Bonds $ 90,070,000 $ 76,600,000 Loans: Cap Improvement Note Ser 2009 BB&T $ 29,942,000 $ 25,542,000 Cap Improvement Note Ser 2010 SunTrust 9,345,000 7,109,400 State Revolving Loans 25,813,361 21,005,711 Total Loans $ 65,100,361 $ 53,657,111 Total Debt $ 173,980,361 $ 146,287,111 Description of Any Indebtedness Payable in Whole or in Part from Series 2011A Pledged Funds, the Series 2011A Covenant Funds, and Series 2011B Pledged Funds 2015
Daytona Beach, FL, City of City of Daytona Beach, Florida Utility System Refunding and Improvement Revenue Bonds, Series 2012, $54,450,000 Dated: September 20, 2012 Series 2012 System Operating Results and Debt Service Coverage Fiscal Year ended September 30, 2015 Operating Revenues Charges for Services 43,741,137 Other Operating Income 159,794 Total Operating Revenue 43,900,931 Non-Operating Revenue Investment Earnings 537,422 Gain (Loss) on Disposal of Capital (83,677) Total Non - Operating Revenues 453,745 Gross Revenues 44,354,676 Operating Expenses Personal Services 9,087,826 Supplies and Services 19,073,005 Total Operating Expenses 28,160,831 Net Revenues 16,193,845 Senior Lien Debt Service 5,973,868 Senior Lien Debt Service Coverage 2.7 Subordinate Debt Service Coverage 13.3 Aggregate Debt Service Coverage 2.4 Net available for Pay-As-You-Go Ca 9,453,455 Other Financing Sources: Transfers In - Transfers Out 6,634,730 Capital Contributions 1,661,727
Series 2012 Recent User Rate History Rate Effective Date Rate Action Percentage Increase October 1, 2014 Increase Water and Sewer 3.30% Series 2012 Water and Sewer Rates - User Charges Minimum Charges Single Family Resident Accounts Inside City Limits: Minimum Water 0-1,000 gallons $ 14.59 Minimum Sewer 0-900 gallons $ 12.11 Garbage $ 10.05 Landfill $ 7.42 Recycling $ 2.62 Storm water $ 8.96 Public Service Tax $ 1.46 Total $ 57.21
Series 2012 Water Rates 125% of Base Rate 133% of Base Rate Water Service Charge Base Rate Zone 1 Outside Zone 2 Outside By Meter Size Zone 0 Inside City City Mainland City Peninsula 5/8" x 3/4-2" $ 9.78 $ 12.23 $ 13.01 3" - 10" $ 13.05 $ 16.31 $ 17.36 Water Consumption: 0-1,000 gal (minimum) $ 4.80 $ 6.00 $ 6.38 1,000 - up $ 4.80 $ 6.00 $ 6.38 Multi-Family Rate $ 4.80 $ 6.00 $ 6.38 Series 2012 Sewer Treatment Rates Base Rate 125% Base Rate 133% Base Rate Sewer Service Charge Zone 0 Zone 1 Zone 2 Base $ 3.84 $ 4.80 $ 5.11 Sewer Usage: 0-900 gal (minimum) $ 8.26 $ 10.33 $ 10.99 900 - up $ 8.26 $ 10.33 $ 10.99 Multi-Family Rate $ 8.26 $ 10.33 $ 10.99 Sewer Only Flat Rate $ 54.92
Series 2012 Water Tap Fees Zone 1 Zone 1 125% Zone 2 133% Tap Size Inside City Outside City Outside City 3/4" $ 1,300 $ 1,625 $ 1,729 1" $ 1,705 $ 2,131 $ 2,268 1-1/2" $ 2,253 $ 2,816 $ 2,996 2" $ 2,681 $ 3,351 $ 3,566 4" $ 9,220 $ 11,525 $ 12,263 6" $ 13,832 $ 17,290 $ 18,397 6" Dual $ 16,514 $ 20,643 $ 21,964 8" $ 16,405 $ 20,506 $ 21,819 8" Dual $ 19,086 $ 23,858 $ 25,384 10" $ 18,336 $ 22,920 $ 24,387 10" Dual $ 21,014 $ 26,268 $ 27,949 Series 2012 Description of Any Material Litigation Insert Required Information Series 2012 Any Other Financial Information or Operating Date Which the Issuer Determines would be Material to a Holder or Prospective Holders of the Certificates
Debt Service 2009 2010 2011 2012 2013 2014 2015 W&S A-D 5,210,917 5,211,809 5,223,229 6,161,310 Series 2012** 1,381,179 5,764,768 5,973,868 BBT 138,400 766,522 766,522 766,522 766,522 766,522 766,522 Sunshine #5 642,781 SRF #1 1,487,219 1,487,219 1,487,219 1,629,765 SRF #2 413,438 413,438 413,438 446,176 Subordinate Debt 2,681,838 2,667,179 2,667,179 2,842,463 766,522 766,522 766,522 Net Revenue 10,713,460 12,668,253 13,977,669 15,004,115 16,657,946 19,111,146 16,193,845 Senior Debt Service 5,210,917 5,211,809 5,223,229 6,161,310 1,381,179 5,764,768 5,973,868 Available Revenue 5,502,543 7,456,444 8,754,440 8,842,805 15,276,767 13,346,378 10,219,977 Subordinate Coverage 2.1 2.8 3.3 3.1 19.9 17.4 13.3 Aggregate Coverage Total Debt Service 7,892,755 7,878,988 7,890,408 9,003,773 2,147,701 6,531,290 6,740,390 Net Revenue 10,713,460 12,668,253 13,977,669 15,004,115 16,657,946 19,111,146 16,193,845 Coverage 1.4 1.6 1.8 1.7 7.8 2.9 2.4 Net Available Net Revenue 10,713,460 12,668,253 13,977,669 15,004,115 16,657,946 19,111,146 16,193,845 Senior Debt Service (5,210,917) (5,211,809) (5,223,229) (6,161,310) (1,381,179) (5,764,768) (5,973,868) Subordinate Debt Service (2,681,838) (2,667,179) (2,667,179) (2,842,463) (766,522) (766,522) (766,522) 2,820,705 4,789,265 6,087,261 6,000,342 14,510,245 12,579,856 9,453,455 **The first year of amortization of the Series 2012 Water & Sewer bonds did not include a payment of principal, therefore the coverage for interest only is very high for this year only.