CITY OF CAPE CORAL ANNUAL DEBT AND CREDIT REPORT September 30, 2012 Prepared by: Financial Services Department
TABLE OF CONTENTS Executive Summary... I Total Debt Summary Information... 1 Targets, Ratios, and Measures Governmental Debt Obligations... 4 Enterprise Debt Obligations... 6 Governmental Funds - Debt Schedules Revenue Bonds... 10 Notes... 32 Capital Leases... 34 Enterprise Funds Debt Schedules Revenue Bonds... 38 Notes State Revolving Fund Loans... 50 Assessment Debt... 56 Conduit Debt... 70 Definitions... 72 Debt Management Policy... 77 i
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Executive Summary As of September 30, 2011, total City outstanding debt was $859,731,171, which includes $232,546,042 governmental debt and $627,185,129 of enterprise debt. The City s enterprise fund continues to be self supporting in that this debt is secured solely by pledges of enterprise revenues which adequately cover debt service on these bonds. Furthermore, many of the Governmental or non-enterprise, non-ad valorem revenue bonds are supported by revenues specifically earmarked for such purpose. For example, bonds issued for the City Hall and EOC are repaid with the State Shared Half-Cent Sales Tax. The City has non-ad valorem revenue debt capacity remaining and is in compliance with its anti-dilution test 1. All City revenues, unless restricted to a specific purpose, are being used to pay debt service or to fund City operations, any use of City revenues to secure and pay additional debt could impact City operations unless additional revenues are identified. The rating agencies have rated our debt which is secured by specific or general revenue pledges 2. In addition to these underlying ratings, many of the City s bonds have also been insured by the major insurance providers including MBIA, AMBAC, FGIC, and Assured Guaranty Ltd. (acquired FSA). The ratings in this report were in effect as of December 31, 2012 and not as of September 30, 2012 (the rest of this report reflects activity for fiscal year 2012). In late calendar year 2007, many of the municipal bond insurance providers came under intense scrutiny due to their involvement with insuring sub-prime mortgage backed obligations. Many of the smaller insurance firms have been downgraded as well as two of the larger firms, both AMBAC and MBIA. Although we believe these downgrades, specifically with respect to MBIA, to be temporary, it does impact the bonds with respect to the surety reserve insurance policies. Covenants within the MBIA policies require the City to establish cash funded reserves over a three year period for any bonds insured by MBIA. For the City, this includes the two Special Obligation Bonds, Series 2006 and Series 2007. Funding began in FY 2008 and continued through 2010 or until MBIA is re-evaluated and its rating elevated once again to AAA. Pursuant to the Balanced Budget and Emergency Deficit Control Act, as amended, the President of the United States ordered that certain automatic spending cuts be implemented pursuant to calculations provided by the United States office of Management and Budget (OMB) in its Report to the Congress on sequestration dated March 1, 2013. These cuts include automatic across-the-board cuts in certain categories of federal spending for the period from March 1, 2013 until the end of the government's current fiscal year on September 30, 2013. The cuts include mandatory reductions in the amounts scheduled to be paid by the federal government to issuers of Build America Bonds. The Internal Revenues Service announced on March 4, 2013, that payments to issuers of Direct-Pay bonds from the budget accounts associated with these bonds are subject to reduction of 8.7%. In May 2010, the City issued $33,815,000 of Federally Taxable Build America Bonds (see debt schedule on page 26). 1 2 An Anti-Dilution test is included in the bond covenants agreed to by the City in connection with debt secured by the City s covenant to budget and appropriate from legally available non-ad valorem revenues. This test attempts to measure and limit the extent to which the City can use non-ad valorem revenues for debt service on additional bonds or for general government services. The purpose of the test is to ensure that the City does not excessively leverage its non-ad valorem revenues. Each of the three major agencies rating the City s debt uses a rating system which relies on alphanumeric indicators. Moody s describes its Aa rated bonds as judged to be of high quality by all standards. Together with the Aaa group they comprise what are generally known as high grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in Aaa securities, or the fluctuation of protective elements may be of greater amplitude, or there may be other elements present that make the long-term risk appear somewhat larger that the Aaa securities. The modifier 3 indicates the issue ranks in lower of the (Aa) category. I
TOTAL OUTSTANDING DEBT As of September 30, 2012, the City had total outstanding debt of $859,731,171. The following is a summary of the debt by type. 2012 Governmental Revenue Bonds $ 229,131,512 Capital Leases 3,414,530 Total Governmental Debt $ 232,546,042 Enterprise Water and Sewer Revenue Bonds 1 $ 466,180,000 Notes Payable 8,935,129 Assessment Debt 3 152,070,000 Total Enterprise Debt $ 627,185,129 Total Debt $ 859,731,171 1 Does not include an increase of $11,635,766 due to unamortized premium and loss. 2 Does not include a decrease of $1,319,692 due to unamortized discount and premium. Enterprise - Assessment Debt, 17.67% Non-ad valorem, 27.04% Enterprise - Notes Payable, 1.04% Enterprise - Water and Sewer, 54.25% 1
Total Outstanding Debt in millions $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 2012 Fiscal Year Enterprise Debt Governmental Debt DEBT SERVICE ON OUTSTANDING DEBT The following table reflects the actual debt service paid (excluding commercial paper) for fiscal year 2012 and scheduled debt service payments for fiscal year 2013. FY 2012 Actual Amounts FY 2013 Scheduled Amounts Interest Total Extraordinary Redemption 1 Interest Total Governmental Revenue $ 7,412,046 $ 11,242,227 $ 18,654,273 - $ 7,955,601 $ 11,102,016 $ 19,057,617 Notes Payable - $ - - - - 264,207 264,207 Capital Leases 243,932 22,923 266,855-574,513 50,847 625,360 Total Governmental $ 7,655,978 $ 11,265,150 $ 18,921,128 $ - $ 8,530,114 $ 11,417,070 $ 19,947,184 Enterprise Water and Sew er Revenue 5,640,000 22,290,563 27,930,563-7,365,000 22,650,420 30,015,420 Stormw ater Revenue 545,000 27,250 572,250 - - - - Notes Payable Assessment 168,318 76,952 245,270-173,287 71,983 245,270 Impact Fee 2,878,636 309,813 3,188,449-2,981,108 207,340 3,188,448 Assessment 8,500,000 6,772,270 15,272,270 1,355,000 8,720,000 6,405,054 15,125,054 Total Enterprise $ 17,731,954 $ 29,476,848 $ 47,208,802 $ 1,355,000 $ 19,239,395 $ 29,334,797 $ 48,574,192 Total Debt Service $ 25,387,932 $ 40,741,998 $ 66,129,930 $ 1,355,000 $ 27,769,509 $ 40,751,867 $ 68,521,376 1 Only the monies received from prepayments that are on deposit on the 35 th day prior to each payment date can be used for extraordinary redemption. 2
TARGETS, RATIOS, AND MEASURES 3
Governmental Debt Obligations 1. Maximum Maturity All Governmental Debt Obligations will have a maximum maturity of the earlier of (i) the estimated useful life of the Capital Improvements financed; (ii) thirty years; or (iii) in the event they are issued to refinance outstanding Governmental Debt Obligations, the final maturity of the refunded Debt Obligations, unless the Financial Services Director recommends and the City Council finds that there is an overriding business reason and public purpose to extend the maturity. The maximum maturity on all governmental debt is 30 years. 2. Direct Debt per Capita Direct debt is defined as a government unit s gross debt less the enterprise system self-supporting debt. The City will strive to maintain Direct Debt per Capita at or below the standard municipal rating agency median for cities of comparable size. In any case, the amount should not exceed 135% of such median. Direct Debt per Capita shall be calculated by dividing the Governmental Direct Debt by the most current population within the City. Rating agency median 2,141 135% of rating agency median 2,890 City of Cape Coral estimated population at September 30, 2012 155,158 Direct debt $ 182,176,042 Direct debt per capita $ 1,174 3. Direct Debt to Taxable Assessed Value The City will strive to maintain a ratio of Net Debt to Taxable Assessed Value of properties within the City at or below the standard municipal rating agency median for cities of comparable size. The ratio should not exceed 135% of such median. The ratio of Net Debt to Taxable Assessed Value shall be calculated by dividing the Direct Debt by the taxable assessed value of all taxable properties within the City of Cape Coral Direct net debt as a % of taxable assessed value Municipal rating agency median 2.4% 135% of rating agency median 3.2% Direct debt $ 182,176,042 Taxable assessed value $ 8,566,590,016 Direct debt to taxable assessed value 2.13% 4. Anti-Dilution Test - The City agrees and covenants under Resolution 77-06 that (A) Non-Ad Valorem Revenues shall cover projected maximum annual debt service by at least 1.5 times; and (B) maximum annual debt service for all debt will not exceed twenty percent (20%) of Governmental Funds revenues, exclusive of (i) ad valorem tax revenues and (ii) any debt proceeds of debt. 4
Historical Non-Ad Valorem Revenues and Debt Service Payable from Non-Ad Valorem Revenues 1 in Thousands (000 s) Revenues 1 FY 2009 FY 2010 FY 2011 FY 2012 Total Governmental Funds $ 142,624 $ 154,202 $ 140,905 $ 135,751 Less: Ad Valorem Revenues 75,359 82,170 69,271 66,987 Total Non-Ad Valorem Revenues $ 67,265 $ 72,032 $ 71,634 $ 68,764 Less: Restricted Funds: Special Revenue 2 6,784 8,853 8,231 9,821 Capital Projects 6,594 6,390 6,921 2,112 Plus: Revenues Received to Pay Debt Service Charter School - - 2,452 3,179 Community Redevopment Agency - - 62 3 Adjusted Non Ad-Valorem Revenues $ 53,887 $ 56,789 $ 58,996 $ 60,013 Expenditures 1 Essential Expenditures Public Safety $ 60,704 $ 61,012 $ 62,676 $ 63,506 General Government 22,292 21,026 25,837 22,915 Total Essential Expenditures $ 82,996 $ 82,038 $ 88,513 $ 86,421 Less: Ad Valorem Revenues Available to Pay Essential Expenditures 73,569 82,170 68,997 66,840 Adjusted Essential Expenditures $ 9,427 3 $ - $ 19,516 $ 19,581 Legally Available Non-Ad Valorem Revenues $ 44,460 $ 56,789 $ 39,480 $ 40,432 Average of current and prior year $ 49,905 $ 50,625 $ 48,135 $ 39,956 Maximum Annual Debt Service (MADS) Requirement 17,196 17,517 17,984 19,104 Coverage 2.90 2.89 2.68 2.09 Required coverage 1.50 1.50 1.50 1.50 MADS as a Percentage of Total Governmental Funds Revenue 12.06% 11.36% 12.54% 13.75% Debt Service s Leases $ 741 $ 561 $ 561 $ 461 Commercial Paper Notes (governmental portion) 391 35 35 - Total Leases/Notes 1,132 596 596 461 Capital Improvement Revenue Bond 3,086 1,727 1,727 1,725 Special Revenue Bond 6,745 14,526 14,526 13,888 Total Annual Debt Service $ 10,963 $ 16,849 $ 16,849 $ 16,074 Total Net Non-Ad Valorem Funds $ 33,497 $ 39,940 $ 22,631 $ 24,358 Not all revenues and expenses of the governmental funds are included in the calculation due to certain funds being restricted. Beginning in FY2009, Five Cents Local Option Gas Tax remained in the adjusted non advalorem revenues amount due to debt issued with a pledge of gas tax revenue. Essential Services are less than Ad Valorem Revenue. 5
Enterprise Debt Obligations 1. Maximum Maturity All Enterprise Debt Obligations will have a maximum maturity of the earlier of (i) the estimated useful life of the Capital Improvements financed; (ii) thirty years; or (iii) in the event they are issued to refinance outstanding Enterprise Debt Obligations, the final maturity of the refunded Debt Obligations, unless the Financial Services Director recommends and the City Council finds that there is an overriding business reason and public purpose to extend the maturity. The maximum maturity on all enterprise debt is 30 years. 2. Average Life The average life is the principal weighted average to maturity. The City will maintain an average life of fifteen (15) years or less for all outstanding enterprise debt obligations. In no event, however, should the average life of aggregate outstanding enterprise debt obligations exceed eighteen and one-half (18 ½) years. The average life on all enterprise debt (excluding commercial paper) is 11.303 years. 3. Debt Service Coverage Water and Sewer Revenue Bonds Water and Sewer Resolution 98-86 adopted by City Council on August 20, 1986 as amended and supplemented, requires the City to fix, establish and maintain such rates and collect such fees, rates or other charges for the product, services and facilities of the System, and revise the same from time to time, whenever necessary, as will provide in each fiscal year, (1) net revenues, expansion fees and special assessment proceeds (if pledged) adequate at all times to pay in each fiscal year at least one hundred twenty percent (120%) of the annual debt service on all outstanding bonds becoming due in such fiscal year and (2) net revenues in each fiscal year adequate to pay at least one hundred percent (100%) of (a) the annual debt service on all outstanding bonds becoming due in such fiscal year and (B) any payment of subordinated indebtedness which must be made during such fiscal year from the net revenues. 2009 2010 2011 2012 Operating Revenues $ 52,071,476 $ 63,232,078 $ 66,613,918 $ 70,886,417 Operating Expenses 35,202,653 34,499,895 32,982,527 34,483,112 Net Operating Revenues 16,868,823 28,732,183 33,631,391 36,403,305 Interest Income 959,012 653,996 622,840 816,787 Net Revenues Available for Debt Service (excluding expansion fees) 17,827,835 29,386,179 34,254,231 37,220,092 Expansion Fees 11,153,359 4,181,715 4,090,286 1,499,190 Net Revenues and Expansion Fees Available for Debt Service 28,981,194 33,567,894 38,344,517 38,719,282 Debt service on bonds only $ 13,311,847 $ 19,162,558 $ 18,246,052 $ 28,662,788 Debt service coverage from net revenues only x 1.34 1.53 1.88 1.30 Debt service coverage from net revenues and expansion fees x 2.18 1.75 2.10 1.35 Debt service on subordinate debt $ 3,188,450 $ 3,188,450 $ 3,188,448 $ 3,188,448 Debt service coverage from net revenues and expansion fees 1 x 4.91 4.52 6.30 3.15 1 Debt service on subordinate debt after payment of bonds. Such calculation is not required by the resolution. 6
Stormwater Revenue Bonds Stormwater resolutions 81-92 and 82-92 adopted by City Council on June 18, 1992 require the City to fix, establish and maintain such rates and collect such fees, rates or other charges for the product as will always provide at least one hundred and twenty five percent (125%) of the annual debt service on all outstanding bonds becoming due in such fiscal year. Historical Debt Service Coverage 2009 2010 2011 2012 Operating Revenues $ 12,540,547 $ 12,641,371 $ 12,435,730 $ 12,335,339 (2) Operating Expenses (1) 8,033,659 9,358,232 9,393,954 12,243,641 Net Operating Revenues 4,506,888 3,283,139 3,041,776 91,698 Interest Income 451,937 286,173 189,752 187,976 Net Revenues Available for Debt Service (excluding expansion fees) 4,958,825 3,569,312 3,231,528 279,674 Debt service $ 573,506 $ 573,506 $ 573,506 $ 573,506 (3) Debt service coverage 8.65 6.22 5.63 0.49 (1) excludes depreciation (2) excludes a $978,611 one-time adjustment decrease to reconcile the receivable to the Lee county Tax Collector oustanding amount. (3) Represents the final debt service payment 4. Debt Service Safety Margin The amount above the minimum debt service coverage amount. The City s goal over a period of time is to achieve a debt service safety margin at or above the standard rating agency median debt service safety margin for each individual system. Water & Sewer Stormwater Rating agency median 2.10 n/a * Actual coverage 1.88 6.22 Required coverage 1.20 1.25 Debt service safety margin 0.68 4.97 * Not rated as a median 5. Ratios and Measures Debt Ratio: Net funded debt divided by the sum of net capital assets plus working capital. The city will maintain a debt ratio for the Enterprise System at or above the standard industry median debt ratio for each individual system Water & Sewer 1 Stormwater Debt $ 472,615,349 $ - Net capital assets $ 568,064,839 $ 26,902,414 Working capital $ 41,526,579 $ 9,990,334 Debt ratio 78% 0% Rating agency median 53% n/a 2 1 Does not include Utility Special Assessments 2 Not rated as a median 7
Operating Ratio: Operating and maintenance expenses divided by total operating revenues. Water & Sewer Stormwater Operating expenses * $ 55,723,608 $ 13,480,263 Operating revenue $ 70,886,417 $ 11,356,728 Operating ratio 79% 119% * Includes depreciation expense Maximum annual debt service coverage: Net revenues divided by estimated maximum annual principal and interest requirements on all outstanding debt. Water & Sewer Stormwater Net revenues 1 $ 37,220,092 $ (698,937) Maximum annual debt service 2 $ 30,019,706 $ - Maximum annual debt service coverage 124% 1 Includes interest income and excludes depreciation expense 2 Final stormwater debt service payment made in FY2012 8
GOVERNMENTAL FUNDS DEBT SCHEDULES 9
REVENUE BONDS 10
$6,240,000 Special Revenue Refunding and Improvement Bonds, Series 2002 d: November 1, 2002 Purpose: s: Security: Insurer: Ratings: The bonds were issued to refund on a current basis all of the City s Franchise Fee Revenue Bonds, Series 1993, in the aggregate principal amount of $6,540,000. The 1993 bonds refinanced two loans totaling $7,335,000 made to the City under the City of Gulf Breeze, Florida Loan Program, Series 1985B for the purpose of financing the cost of the acquisition of certain real property for recreational purposes, acquisition of land for new fire stations, and acquisition, construction, and equipping of improvements to the City s golf course. Semiannual interest payable on December 1 st and June 1 st Annual principal payable on December 1 st The Bonds are secured by an irrevocable pledge of and lien upon Franchise Fees and Communication Service Tax Revenues. Ambac Assurance Corporation (AMBAC) Insured Underlying Fitch withdrawn not rated Moody s withdrawn not rated Standard & Poor s not rated not rated Redemption Provisions: The bonds are not subject to redemption prior to maturity. Debt Service Schedule: Fiscal Year Coupon Rate Interest Fiscal Year Debt Service Outstanding $ 720,000 2013 12/01/2012 $ 720,000 3.750% $ 13,500 $ 733,500 - Total $ 720,000 $ 13,500 $ 733,500 All-In True Interest Cost... 3.6633022% 11
$20,550,000 Capital Improvement & Refunding Revenue Bonds, Series 2005 d: April 14, 2005 Purpose: s: Security: Insurer: Ratings: The bonds were issued to refund on an advanced basis a portion of the Capital Improvement Revenue Bonds, Series 1999 and to finance the cost of acquisition, construction, and equipping of a new fire station, public art studio, and the reconfiguration and renovation of a recreation park. Semiannual interest payable on April 1 st and October 1 st Annual principal payable on October 1 st The Bonds are secured by a lien upon and pledge of the half-cent sales tax. Assured Guaranty, Ltd. (acquired Financial Security Assurance Inc. (FSA)) Insured Underlying Fitch AA- AA- Moody s Aa3 Aa3 Standard & Poor s AA- A Redemption Provisions The bonds are subject to optional and mandatory redemption as described below. Optional Redemption The bonds maturing on or after October 1, 2016 may be redeemed prior to their respective maturities at any time on or after October 1, 2015, at the redemption price of 100%. Mandatory Redemption The bonds maturing on October 1, 2024 will be subject to mandatory redemption prior to their maturity at the following dates and amounts. Amount 10/1/2023 $ 1,580,000 10/1/2024 * 1,650,000 Total $ 3,230,000 * Final maturity 12
$20,550,000 Capital Improvement & Refunding Revenue Bonds, Series 2005 Fiscal Year Coupon Rate Interest Fiscal Year Debt Service Outstanding $ 15,885,000 2013 4/01/2013 $ 339,197 10/01/2013 $ 1,050,000 4.125% 339,197 $ 1,728,394 $ 14,835,000 2014 4/01/2014 317,541 10/01/2014 1,090,000 4.250% 317,541 1,725,082 13,745,000 2015 4/01/2015 294,378 10/01/2015 1,135,000 4.000% 294,378 1,723,756 12,610,000 2016 4/01/2016 271,678 10/01/2016 1,180,000 4.000% 271,678 1,723,356 11,430,000 2017 4/01/2017 248,078 10/01/2017 1,230,000 4.125% 248,078 1,726,156 10,200,000 2018 4/01/2018 222,709 10/01/2018 1,280,000 4.125% 222,709 1,725,418 8,920,000 2019 4/01/2019 196,309 10/01/2019 1,335,000 4.250% 196,309 1,727,618 7,585,000 2020 4/01/2020 167,941 10/01/2020 1,390,000 4.375% 167,941 1,725,882 6,195,000 2021 4/01/2021 137,534 10/01/2021 1,450,000 4.375% 137,534 1,725,068 4,745,000 2022 4/01/2022 105,816 10/01/2022 1,515,000 4.375% 105,816 1,726,632 3,230,000 2023 4/01/2023 72,675 10/01/2023 1,580,000 * 4.500% 72,675 1,725,350 1,650,000 2024 4/01/2024 37,125 10/01/2024 1,650,000 T 4.500% 37,125 1,724,250 - Total $ 15,885,000 $ 4,821,962 $ 20,706,962 * = Sinking fund payment T = Final maturity of term bond prior year paid amount 1,010,000 716,268 1,726,268 All-In True Interest Cost... 4.4855980% 13
$60,000,000 Special Obligation Revenue Bonds, Series 2006 d: June 20, 2006 Purpose: s: Security: Insurer: Ratings: The bonds were issued to finance the cost of acquisition of various land within the City. Semiannual interest payable on April 1 st and October 1 st Annual principal payable on October 1 st The Bonds are secured by non-ad valorem revenues budgeted and appropriated by City Council. MBIA Insurance Corporation (MBIA) Insured Underlying Fitch A+ A+ Moody s Aa3 Aa3 Standard & Poor s A A Redemption Provisions The bonds are subject to optional and mandatory redemption as described below. Optional Redemption The bonds maturing on or after October 1, 2017 may be redeemed prior to their respective maturities at any time on or after October 1, 2016, at the redemption price of 100%. Mandatory Redemption The bonds maturing on October 1, 2030 bearing interest at 4.625% will be subject to mandatory redemption prior to their maturity at the following dates and amounts. Amount 10/1/2030 * $ 1,340,000 * Final maturity The bonds maturing on October 1, 2030 bearing an interest at 5.00% will be subject to mandatory redemption prior to their maturity at the following dates and amounts. Amount 10/1/2028 $ 2,515,000 10/1/2029 2,640,000 10/1/2030 * 1,435,000 Total $ 6,590,000 * Final maturity 14
The bonds maturing on October 1, 2033 will be subject to mandatory redemption prior to their maturity at the following dates and amounts. Amount 10/1/2031 $ 2,905,000 10/1/2032 3,050,000 10/1/2033 * 3,205,000 Total $ 9,160,000 * Final maturity The bonds maturing on October 1, 2036 will be subject to mandatory redemption prior to their maturity at the following dates and amounts. Debt Service Schedule: Amount 10/1/2034 $ 3,365,000 10/1/2035 3,515,000 10/1/2036 * 3,675,000 Total $ 10,555,000 * Final maturity A detailed debt service schedule is on the following page. 15
$60,000,000 Special Obligation Revenue Bonds, Series 2006 Fiscal Year Coupon Rate Interest Fiscal Year Debt Service Outstanding $ 54,140,000 2013 4/01/2013 $ 1,282,949 10/01/2013 $ 1,275,000 4.000% 1,282,949 $ 3,840,898 $ 52,865,000 2014 4/01/2014 1,257,449 10/01/2014 1,325,000 4.000% 1,257,449 3,839,898 51,540,000 2015 4/01/2015 1,230,949 10/01/2015 225,000 4.000% 10/01/2015 1,155,000 5.000% 1,230,949 3,841,898 50,160,000 2016 4/01/2016 1,197,574 10/01/2016 1,445,000 4.000% 1,197,574 3,840,148 48,715,000 2017 4/01/2017 1,168,674 10/01/2017 200,000 4.125% 10/01/2017 1,300,000 5.000% 1,168,674 3,837,348 47,215,000 2018 4/01/2018 1,132,049 10/01/2018 1,575,000 4.125% 1,132,049 3,839,098 45,640,000 2019 4/01/2019 1,099,565 10/01/2019 50,000 4.250% 10/01/2019 1,590,000 5.000% 1,099,565 3,839,130 44,000,000 2020 4/01/2020 1,058,753 10/01/2020 1,720,000 5.000% 1,058,753 3,837,506 42,280,000 2021 4/01/2021 1,015,753 10/01/2021 1,810,000 4.300% 1,015,753 3,841,506 40,470,000 2022 4/01/2022 976,838 10/01/202 1,885,000 5.000% 976,838 3,838,676 38,585,000 2023 4/01/2023 929,713 10/01/2023 1,980,000 5.000% 929,713 3,839,426 36,605,000 2024 4/01/2024 880,213 10/01/2024 2,080,000 5.000% 880,213 3,840,426 34,525,000 2025 4/01/2025 828,213 10/01/2025 2,185,000 5.000% 828,213 3,841,426 32,340,000 2026 4/01/2026 773,588 10/01/2026 2,290,000 5.000% 773,588 3,837,176 30,050,000 2027 4/01/2027 716,338 10/01/2027 2,405,000 4.500% 716,338 3,837,676 27,645,000 2028 4/01/2028 662,225 10/01/2028 2,515,000 * 5.000% 662,225 3,839,450 25,130,000 2029 4/01/2029 599,350 10/01/2029 2,640,000 * 5.000% 599,350 3,838,700 22,490,000 2030 4/01/2030 533,350 10/01/2030 1,435,000 T 5.000% 10/01/2030 1,340,000 T 4.625% 533,350 3,841,700 19,715,000 2031 4/01/2031 466,488 10/01/2031 2,905,000 * 5.000% 466,488 3,837,976 16,810,000 2032 4/01/2032 393,863 10/01/2032 3,050,000 * 5.000% 393,863 3,837,726 13,760,000 2033 4/01/2033 317,613 10/01/2033 3,205,000 T 5.000% 317,613 3,840,226 10,555,000 2034 4/01/2034 237,488 10/01/2034 3,365,000 * 4.500% 237,488 3,839,976 7,190,000 2035 4/01/2035 161,775 10/01/2035 3,515,000 * 4.500% 161,775 3,838,550 3,675,000 2036 4/01/2036 82,688 10/01/2036 3,675,000 T 4.500% 82,688 3,840,376 - Total $ 54,140,000 $ 38,006,916 $ 92,146,916 * = Sinking fund payment T = Final maturity of term bond All-In True Interest Cost... 4.726926% 16
$35,380,000 Special Obligation Revenue Bonds, Series 2007 d: January 30, 2007 Purpose: s: Security: Insurer: Ratings: The bonds were issued to refinance certain outstanding indebtedness of the City, incurred to finance the cost of acquisition, construction, and equipping of the City s charter schools. Semiannual interest payable on January 1 st and July 1 st Annual principal payable on July 1 st The Bonds are secured by non-ad valorem revenues budgeted and appropriated by City Council. MBIA Insurance Corporation (MBIA) Insured Underlying Fitch A+ A+ Moody s Aa3 Aa3 Standard & Poor s A A Redemption Provisions The bonds are subject to optional and mandatory redemption as described below. Optional Redemption The bonds maturing on or after July 1, 2018 may be redeemed prior to their respective maturities at any time on or after July 1, 2017, at the redemption price of 100%. Mandatory Redemption The bonds maturing on July 1, 2030 bearing interest at 4.250% will be subject to mandatory redemption prior to their maturity at the following dates and amounts. Amount 7/1/2029 $ 1,470,000 7/1/2030 * 1,530,000 Total $ 3,000,000 *Final maturity 17
The bonds maturing on July 1, 2035 bearing an interest rate of 4.500% will be subject to mandatory redemption prior to their maturity at the following dates and amounts. Amount 7/1/2031 $ 1,595,000 7/1/2032 1,670,000 7/1/2033 1,745,000 7/1/2034 1,825,000 7/1/2035 * 1,905,000 Total $ 8,740,000 * Final maturity The bonds maturing on July 1, 2037 bearing an interest rate of 4.500% will be subject to mandatory redemption prior to their maturity at the following dates and amounts. Amount 7/1/2036 $ 1,990,000 7/1/2037 * 2,080,000 Total $ 4,070,000 * Final maturity 18
$35,380,000 Special Obligation Revenue Bonds, Series 2007 Fiscal Year Coupon Rate Interest Fiscal Year Debt Service Outstanding $ 32,680,000 2013 1/1/2013 $ 710,934 7/1/2013 $ 750,000 4.000% 710,934 $ 2,171,868 $ 31,930,000 2014 1/1/2014 695,934 7/1/2014 780,000 5.500% 695,934 2,171,868 31,150,000 2015 1/1/2015 674,484 7/1/2015 825,000 5.500% 674,484 2,173,968 30,325,000 2016 1/1/2016 651,797 7/1/2016 870,000 4.000% 651,797 2,173,594 29,455,000 2017 1/1/2017 634,397 7/1/2017 905,000 4.000% 634,397 2,173,794 28,550,000 2018 1/1/2018 616,297 7/1/2018 940,000 4.000% 616,297 2,172,594 27,610,000 2019 1/1/2019 597,497 7/1/2019 980,000 4.000% 597,497 2,174,994 26,630,000 2020 1/1/2020 577,897 7/1/2020 1,020,000 4.000% 577,897 2,175,794 25,610,000 2021 1/1/2021 557,497 7/1/2021 1,060,000 4.000% 557,497 2,174,994 24,550,000 2022 1/1/2022 536,297 7/1/2022 1,100,000 4.125% 536,297 2,172,594 23,450,000 2023 1/1/2023 513,609 7/1/2023 1,145,000 4.125% 513,609 2,172,218 22,305,000 2024 1/1/2024 489,994 7/1/2024 1,195,000 4.250% 489,994 2,174,988 21,110,000 2025 1/1/2025 464,600 7/1/2025 1,245,000 4.250% 464,600 2,174,200 19,865,000 2026 1/1/2026 438,144 7/1/2026 1,295,000 4.250% 438,144 2,171,288 18,570,000 2027 1/1/2027 410,625 7/1/2027 1,350,000 4.250% 410,625 2,171,250 17,220,000 2028 1/1/2028 381,938 7/1/2028 1,410,000 4.250% 381,938 2,173,876 15,810,000 2029 1/1/2029 351,975 7/1/2029 1,470,000 * 4.250% 351,975 2,173,950 14,340,000 2030 1/1/2030 320,738 7/1/2030 1,530,000 T 4.250% 320,738 2,171,476 12,810,000 2031 1/1/2031 288,225 7/1/2031 1,595,000 * 4.500% 288,225 2,171,450 11,215,000 2032 1/1/2032 252,338 7/1/2032 1,670,000 * 4.500% 252,338 2,174,676 9,545,000 2033 1/1/2033 214,763 7/1/2033 1,745,000 * 4.500% 214,763 2,174,526 7,800,000 2034 1/1/2034 175,500 7/1/2034 1,825,000 * 4.500% 175,500 2,176,000 5,975,000 2035 1/1/2035 134,438 7/1/2035 1,905,000 T 4.500% 134,438 2,173,876 4,070,000 2036 1/1/2036 91,575 7/1/2036 1,990,000 * 4.500% 91,575 2,173,150 2,080,000 2037 1/1/2037 46,800 7/1/2037 2,080,000 T 4.500% 46,800 2,173,600 - Total $ 32,680,000 $ 21,656,586 $ 54,336,586 * = Sinking fund payment T = Final maturity of term bond All-In True Interest Cost... 4.5127166% 19
$28,200,000 Special Obligation Revenue Bonds, Series 2008 d: December 3, 2008 Purpose: s: Security: Insurer: Ratings: The bonds were issued to finance and refinance the acquisition, construction and equipping of a new police headquarters facility. Semiannual interest payable on April 1 st and October 1 st Annual principal payable on October 1 st The Bonds are secured by the half-cent sales tax. N/A Branch Banking & Trust Company bank loan issued N/A Redemption Provisions The bonds are subject to optional redemption as described below. Optional Redemption The bond may be redeemed at any time on or after October 1, 2019 at the following redemption prices: Redemption Redemption Price October 1, 2019 through October 1, 2023 101% April, 2024 through October 1, 2028 100% Debt Service Schedule: A detailed debt service schedule is on the following page. 20
$28,200,000 Special Obligation Revenue Bonds, Series 2008 Fiscal Year Coupon Rate Interest Fiscal Year Debt Service Outstanding $ 27,950,000 2013 4/1/2013 $ 792,382 10/1/2013 $ 150,000 5.670% 792,383 $ 1,734,765 $ 27,800,000 2014 4/1/2014 788,130 10/1/2014 895,000 5.670% 788,130 2,471,260 26,905,000 2015 4/1/2015 762,757 10/1/2015 945,000 5.670% 762,757 2,470,514 25,960,000 2016 4/1/2016 735,966 10/1/2016 1,000,000 5.670% 735,966 2,471,932 24,960,000 2017 4/1/2017 707,616 10/1/2017 1,055,000 5.670% 707,616 2,470,232 23,905,000 2018 4/1/2018 677,707 10/1/2018 1,115,000 5.670% 677,707 2,470,414 22,790,000 2019 4/1/2019 646,096 10/1/2019 1,175,000 5.670% 646,097 2,467,193 21,615,000 2020 4/1/2020 612,785 10/1/2020 1,245,000 5.670% 612,785 2,470,570 20,370,000 2021 4/1/2021 577,489 10/1/2021 1,310,000 5.670% 577,490 2,464,979 19,060,000 2022 4/1/2022 540,351 10/1/2022 1,390,000 5.670% 540,351 2,470,702 17,670,000 2023 4/1/2023 500,944 10/1/2023 1,470,000 5.670% 500,945 2,471,889 16,200,000 2024 4/1/2024 459,270 10/1/2024 1,550,000 5.670% 459,270 2,468,540 14,650,000 2025 4/1/2025 415,327 10/1/2025 3,360,000 5.670% 415,328 4,190,655 11,290,000 2026 4/1/2026 320,071 10/1/2026 3,560,000 5.670% 320,072 4,200,143 7,730,000 2027 4/1/2027 219,145 10/1/2027 3,760,000 5.670% 219,146 4,198,291 3,970,000 2028 4/1/2028 112,549 10/1/2028 3,970,000 5.670% 112,550 4,195,099 - Total $ 27,950,000 $ 17,737,178 $ 45,687,178 All-In True Interest Cost... 5.685036% 21
$30,000,000 Gas Tax Revenue Bonds, Series 2009 d: January 28, 2009 Purpose: s: Security: Insurer: Ratings: The bonds were issued to finance the acquisition and construction of various transportation related capital improvements within the City. Semiannual interest payable on April 1 st and October 1 st Annual principal payable on October 1 st The Bonds are secured by Gas Tax Revenues and to the extent the other pledged funds are insufficient to pay debt service on the obligations, the Non-valorem revenues budgeted and appropriated by City Council. N/A RBC Bank loan issued N/A Redemption Provisions The bonds are subject to optional redemption as described below. Optional Redemption The bond may be redeemed at any time on or after February 1, 2014, at the redemption price of 100. Debt Service Schedule: A detailed debt service schedule is on the following page. 22
$30,000,000 Gas Tax Revenue Bonds, Series 2009 Fiscal Year Coupon Rate Interest Fiscal Year Debt Service Outstanding $ 24,844,182 2013 4/1/2013 $ 481,977 10/1/2013 $ 1,853,661 3.880% 481,977 $ 2,817,615 $ 22,990,521 2014 4/1/2014 446,016 10/1/2014 1,925,583 3.880% 446,016 2,817,615 21,064,938 2015 4/1/2015 408,660 10/1/2015 2,000,296 3.880% 408,660 2,817,616 19,064,642 2016 4/1/2016 369,854 10/1/2016 2,077,908 3.880% 369,854 2,817,616 16,986,734 2017 4/1/2017 329,543 10/1/2017 2,158,530 3.880% 329,543 2,817,616 14,828,204 2018 4/1/2018 287,667 10/1/2018 2,242,281 3.880% 287,667 2,817,615 12,585,923 2019 4/1/2019 244,167 10/1/2019 2,329,282 3.880% 244,167 2,817,616 10,256,641 2020 4/1/2020 198,979 10/1/2020 2,419,658 3.880% 198,979 2,817,616 7,836,983 2021 4/1/2021 152,037 10/1/2021 2,513,541 3.880% 152,037 2,817,615 5,323,442 2022 4/1/2022 103,275 10/1/2022 2,611,066 3.880% 103,275 2,817,616 2,712,376 2023 4/1/2023 52,620 10/1/2023 2,712,376 3.880% 52,620 2,817,616 - Total $ 24,844,182 $ 6,149,590 $ 30,993,772 All-In True Interest Cost... 3.916932% 23
$6,185,000 Gas Tax Revenue Bonds, Series 2010A $33,815,000 Gas Tax Revenue Bonds, (Federally Taxable Build America Bonds Direct ) Series 2010B d: May 4, 2010 Purpose: s: Security: Insurer: The bonds were issued for the purpose of financing and refinancing a portion of the cost of the acquisition, construction and reconstruction of, and other transportation improvements to various roads and bridges within the City. Semiannual interest payable on April 1 st and October 1 st Annual principal payable on October 1 st The Bonds are secured by a pledge of the five cents local option and the six cents local option gas tax. If the City s receipt of either the five cents local option gas tax or the six cents local option gas tax expires or is terminated, then the City has agreed to appropriate non-ad valorem revenues sufficient to pay principal and interest on the bonds. N/A Ratings: Insured Underlying 2010A 2010B 2010A 2010B Fitch A- A- not rated not rated Moody's not rated not rated A2 A2 Standard & Poor's not rated not rated not rated not rated Build America Bonds In February 2009, as part of the American Recovery and Reinvestment Act of 2009 ( ARRA ), Congress added Section 54AA to the Internal Revenue Code of 1986, as amended (the Code ), which permits states and certain local governments to issue two types of bonds as taxable governmental bonds with federal subsidies for a portion of the borrowing costs referred to as Build America Bonds. For the purposes of the Resolution, Build America Bonds means bonds issued under Section 54AA of the Code, the interest on which is not exempt from federal income taxation, with respect to which the City elects to receive Federal Subsidy s (as such term is hereinafter defined) from the United States Treasury in an amount equal to thirty-five percent (35%) of the interest paid on such bonds pursuant to Section 54AA(g) of the Code. Redemption Provisions The Series 2010A bonds are not subject to redemption at any time prior to maturity. The Series 2010B bonds are subject to extraordinary, optional, and mandatory redemption as described below. 24
Extraordinary Redemption The 2010B bonds are subject to extraordinary redemption, at a price equal to the principal amount, in whole or in part, ratable among maturities, on any payment date. Optional Redemption The bonds maturing on or after October 1, 2021 may be redeemed, in whole or in part, prior to their respective maturities at any time on or after October 1, 2020, at the redemption price of 100%. Mandatory Redemption The 2010B bonds maturing on or after October 1, 2030 will be subject to mandatory redemption prior to their maturity at the following dates and amounts. Year Amount 2026 $ 4,110,000 2027 4,305,000 2028 4,505,000 2029 4,715,000 2030 * 4,935,000 Total $ 22,570,000 * Final maturity $6,185,000 Gas Tax Revenue Bonds, Series 2010A Fiscal Year Coupon Rate Interest Fiscal Year Debt Service Outstanding $ 4,960,000 2013 4/1/2013 $ 95,165 10/1/2013 $ 640,000 3.000% 95,166 $ 830,331 $ 4,320,000 2014 4/1/2014 85,565 10/1/2014 655,000 4.000% 85,566 826,131 3,665,000 2015 4/1/2015 75,740 10/1/2015 675,000 4.000% 75,741 826,481 2,990,000 2016 4/1/2016 62,240 10/1/2016 705,000 4.000% 62,241 829,481 2,285,000 2017 4/1/2017 48,140 10/1/2017 730,000 4.250% 48,141 826,281 1,555,000 2018 4/1/2018 33,540 10/1/2018 760,000 4.375% 33,541 827,081 795,000 2019 4/1/2019 17,390 10/1/2019 795,000 5.849% 17,391 829,781 - Total $ 4,960,000 $ 835,567 $ 5,795,567 25
$33,815,000 Gas Tax Revenue Bonds, (Federally Taxable Build America Bonds Direct ) Series 2010B Fiscal Year Coupon Rate Interest Federal Subsidy Fiscal Year Debt Service Outstanding $ 33,815,000 2013 4/1/2013 $ 1,163,110 $ (407,089) 10/1/2013 $ - 3.000% 1,163,110 (407,089) $ 1,512,042 $ 33,815,000 2014 4/1/2014 1,163,110 (407,089) 10/1/2014-4.000% 1,163,110 (407,089) 1,512,042 33,815,000 2015 4/1/2015 1,163,110 (407,089) 10/1/2015-4.000% 1,163,110 (407,089) 1,512,042 33,815,000 2016 4/1/2016 1,163,110 (407,089) 10/1/2016-4.000% 1,163,110 (407,089) 1,512,042 33,815,000 2017 4/1/2017 1,163,110 (407,089) 10/1/2017-4.250% 1,163,110 (407,089) 1,512,042 33,815,000 2018 4/1/2018 1,163,110 (407,089) 10/1/2018-4.375% 1,163,110 (407,089) 1,512,042 33,815,000 2019 4/1/2019 1,163,110 (407,089) 10/1/2019-5.849% 1,163,110 (407,089) 1,512,042 33,815,000 2020 4/1/2020 1,163,110 (407,089) 10/1/2020 830,000 6.049% 1,163,110 (407,089) 2,342,042 32,985,000 2021 4/1/2021 1,138,836 (398,593) 10/1/2021 860,000 6.149% 1,138,836 (398,593) 2,340,486 32,125,000 2022 4/1/2022 1,112,826 (389,489) 10/1/2022 895,000 6.249% 1,112,826 (389,489) 2,341,674 31,230,000 2023 4/1/2023 1,085,309 (379,858) 10/1/2023 930,000 6.369% 1,085,309 (379,858) 2,340,902 30,300,000 2024 4/1/2024 1,056,251 (369,688) 10/1/2024 3,785,000 6.549% 1,056,251 (369,688) 5,158,126 26,515,000 2025 4/1/2025 935,718 (327,501) 10/1/2025 3,945,000 7.147% 935,718 (327,501) 5,161,434 22,570,000 2026 4/1/2026 806,539 (282,289) 10/1/2026 4,110,000 * 7.147% 806,539 (282,289) 5,158,500 18,460,000 2027 4/1/2027 659,668 (230,884) 10/1/2027 4,305,000 * 7.147% 659,668 (230,884) 5,162,568 14,155,000 2028 4/1/2028 505,829 (177,040) 10/1/2028 4,505,000 * 7.147% 505,829 (177,040) 5,162,578 9,650,000 2029 4/1/2029 344,843 (120,695) 10/1/2029 4,715,000 * 7.147% 344,843 (120,695) 5,163,296 4,935,000 2030 4/1/2030 176,352 (61,723) 10/1/2030 4,935,000 T 7.147% 176,352 (61,723) 5,164,258 - Total $ 33,815,000 $ 34,254,102 $ (11,988,944) $ 56,080,158 * = Sinking fund payment T = Final maturity of term bond All-In True Interest Cost... 4.542923% 26
$17,690,000 Special Obligation Revenue Bonds, Series 2011 d: March 17, 2011 Purpose: s: Security: Insurer: Ratings: The bonds were issued to finance a portion of the cost of acquisition, construction and equipping of various capital improvements to the City s Charter Schools and refinancing the prior indebtedness for the project Semiannual interest payable on January 1 st and July 1 st Annual principal payable on July 1 st The Bonds are secured by non-ad valorem revenues budgeted and appropriated by City Council. N/A Insured Underlying Fitch N/A A+ Moody s N/A Aa3 Standard & Poor s not rated not rated Redemption Provisions The bonds are subject to optional and mandatory redemption as described below. Optional Redemption The bonds maturing on or after July 1, 2022 may be redeemed prior to their respective maturities at any time on or after July 1, 2021, at the redemption price of par. Mandatory Redemption The bonds maturing on July 1, 2026 will be subject to mandatory redemption prior to their maturity at the following dates and amounts. Amount 7/1/2022 $ 445,000 7/1/2023 470,000 7/1/2024 490,000 7/1/2025 520,000 7/1/2026 * 545,000 Total $ 2,470,000 *Final maturity 27
The bonds maturing on July 1, 2031 will be subject to mandatory redemption prior to their maturity at the following dates and amounts. Amount 7/1/2027 $ 575,000 7/1/2028 610,000 7/1/2029 645,000 7/1/2030 680,000 7/1/2031 * 715,000 Total $ 3,225,000 *Final maturity The bonds maturing on July 1, 2040 will be subject to mandatory redemption prior to their maturity at the following dates and amounts. Amount 7/1/2032 $ 755,000 7/1/2033 805,000 7/1/2034 850,000 7/1/2035 900,000 7/1/2036 955,000 7/1/2037 1,015,000 7/1/2038 1,075,000 7/1/2039 1,140,000 7/1/2040 * 1,205,000 Total $ 8,700,000 *Final maturity Debt Service Schedule: A detailed debt service schedule is on the following page. 28
Fiscal Year $17,690,000 Special Obligation Revenue Bonds, Series 2011 Coupon Rate Interest Fiscal Year Debt Service Outstanding $ 17,690,000 2013 1/1/2013 $ 478,708 7/1/2013 $ 320,000 2.250% 478,708 $ 1,277,416 17,370,000 2014 1/1/2014 475,108 7/1/2014 330,000 2.625% 475,108 1,280,216 17,040,000 2015 1/1/2015 470,777 7/1/2015 340,000 3.125% 470,777 1,281,554 16,700,000 2016 1/1/2016 465,464 7/1/2016 350,000 3.375% 465,464 1,280,928 16,350,000 2017 1/1/2017 459,558 7/1/2017 360,000 3.600% 459,558 1,279,116 15,990,000 2018 1/1/2018 453,078 7/1/2018 375,000 4.000% 453,078 1,281,156 15,615,000 2019 1/1/2019 445,578 7/1/2019 390,000 4.250% 445,578 1,281,156 15,225,000 2020 1/1/2020 437,291 7/1/2020 405,000 4.500% 437,291 1,279,582 14,820,000 2021 1/1/2021 428,178 7/1/2021 425,000 4.750% 428,178 1,281,356 14,395,000 2022 1/1/2022 418,084 7/1/2022 445,000 * 5.375% 418,084 1,281,168 13,950,000 2023 1/1/2023 406,125 7/1/2023 470,000 * 5.375% 406,125 1,282,250 13,480,000 2024 1/1/2024 393,494 7/1/2024 490,000 * 5.375% 393,494 1,276,988 12,990,000 2025 1/1/2025 380,325 7/1/2025 520,000 * 5.375% 380,325 1,280,650 12,470,000 2026 1/1/2026 366,350 7/1/2026 545,000 T 5.375% 366,350 1,277,700 11,925,000 2027 1/1/2027 351,703 7/1/2027 575,000 * 5.625% 351,703 1,278,406 11,350,000 2028 1/1/2028 335,531 7/1/2028 610,000 * 5.625% 335,531 1,281,062 10,740,000 2029 1/1/2029 318,375 7/1/2029 645,000 * 5.625% 318,375 1,281,750 10,095,000 2030 1/1/2030 300,234 7/1/2030 680,000 * 5.625% 300,234 1,280,468 9,415,000 2031 1/1/2031 281,109 7/1/2031 715,000 T 5.625% 281,109 1,277,218 8,700,000 2032 1/1/2032 261,000 7/1/2032 755,000 * 6.000% 261,000 1,277,000 7,945,000 2033 1/1/2033 238,350 7/1/2033 805,000 * 6.000% 238,350 1,281,700 7,140,000 2034 1/1/2034 214,200 7/1/2034 850,000 * 6.000% 214,200 1,278,400 6,290,000 2035 1/1/2035 188,700 7/1/2035 900,000 * 6.000% 188,700 1,277,400 5,390,000 2036 1/1/2036 161,700 7/1/2036 955,000 * 6.000% 161,700 1,278,400 4,435,000 2037 1/1/2037 133,050 7/1/2037 1,015,000 * 6.000% 133,050 1,281,100 3,420,000 2038 1/1/2038 102,600 7/1/2038 1,075,000 * 6.000% 102,600 1,280,200 2,345,000 2039 1/1/2039 70,350 7/1/2039 1,140,000 * 6.000% 70,350 1,280,700 1,205,000 2040 1/1/2040 36,150 7/1/2040 1,205,000 T 6.000% 36,150 1,277,300 - Total $ 17,690,000 $ 18,142,340 $ 35,832,340 * = Sinking fund payment T = Final maturity of term bond All-In True Interest Cost... 5.9123901% 29
$17,669,950 Special Obligation Revenue Note, Series 2012 d: January 31, 2012 Purpose: s: Security: Insurer: Ratings: The bonds were issued to refund the City's outstanding Special Obligation Revenue Note, Series 2009 and certain outstanding commercial paper obligations, the proceeds of which were used to refinance certain commercial paper obligations, which were used to finance and refinance the acquisition, construction and equipping of various capital improvements with the City. Semiannual interest payable on January 1 st and July 1 st Annual principal payable on July 1 st The Bonds are secured by non-ad valorem revenues budgeted and appropriated by City Council. N/A - Pinnacle Public Finance Inc bank loan issued N/A Optional Prepayment The note may be prepaid at any time prior to the maturity date at the following prepayment prices: Debt Service Schedule: Redemption Redemption Price On or prior to October 1, 2015 102% October 2, 2015 through October 1, 2018 After October 1, 2018 101% 100% A detailed debt service schedule is on the following page. 30
$17,669,500 Special Obligation Revenue Note, Series 2012 Fiscal Year Coupon Rate Interest Fiscal Year Debt Service Outstanding $ 16,447,330 2013 4/1/2013 $ 199,835 10/1/2013 $ 1,196,940 2.430% 199,835 $ 1,596,610 $ 15,250,390 2014 4/1/2014 185,292 10/1/2014 1,226,040 2.430% 185,292 1,596,624 14,024,350 2015 4/1/2015 170,396 10/1/2015 1,255,820 2.430% 170,396 1,596,612 12,768,530 2016 4/1/2016 155,138 10/1/2016 1,286,340 2.430% 155,138 1,596,616 11,482,190 2017 4/1/2017 139,509 10/1/2017 1,317,600 2.430% 139,509 1,596,618 10,164,590 2018 4/1/2018 123,500 10/1/2018 1,349,620 2.430% 123,500 1,596,620 8,814,970 2019 4/1/2019 107,102 10/1/2019 1,382,410 2.430% 107,102 1,596,614 7,432,560 2020 4/1/2020 90,306 10/1/2020 1,416,010 2.430% 90,306 1,596,622 6,016,550 2021 4/1/2021 73,101 10/1/2021 1,450,420 2.430% 73,101 1,596,622 4,566,130 2022 4/1/2022 55,479 10/1/2022 1,485,650 2.430% 55,479 1,596,608 3,080,480 2023 4/1/2023 37,428 10/1/2023 1,521,750 2.430% 37,428 1,596,606 1,558,730 2024 4/1/2024 18,939 10/1/2024 1,558,730 2.430% 18,939 1,596,608 - Total $ 16,447,330 $ 2,712,050 $ 19,159,380 31
NOTES STATE INFRASTRUCTURE BANK LOAN AGREEMENT 32
$8,806,887 State Infrastructure Bank Loan d: June 21, 2012 Purpose: s: Security: Insurer: Ratings: The loan was issued for the purpose of funding a capital improvement project which consisted of the construction of two additional travel lanes for State Road 78 from Chiquita Boulevard to Burnt Store Road capital improvement project. payments shall be made by transfer of the Lee County Metropolitan Planning Organization (MPO) Funds to the Department in accordance with the Locally Funded Agreement. Annual interest is made annually on October 1 st by the City. The Bonds are secured by non-ad valorem revenues budgeted and appropriated by City Council. N/A N/A Redemption Provisions N/A Debt Service Schedule: Fiscal Year Coupon Rate Interest Fiscal Year Debt Service Outstanding $ - 2013 10/1/2013 $ - 3.000% $ 264,206 $ 264,206 2014 10/1/2014-3.000% 264,206 264,206 $ - 2015 4/1/2015-3.000% 264,206 264,206 2016 10/1/2016-3.000% 114,206 114,206 - Total $ - $ 906,824 $ 906,824 33
CAPITAL LEASES 34
2,315,707 Capital Lease d: March 30, 2012 Purpose: s: The lease was issued for the purpose of paying the costs of acquisition of various police and fire vehicles, and information technology equipment. Semiannual interest and principal payable on April 1 st and October 1 st Security: Insurer: Ratings: The lease is collateralized by the related equipment N/A N/A Debt Service Schedule: Fiscal Year Coupon Rate Interest Fiscal Year Debt Service Outstanding $ 2,112,962 2013 4/1/2013 $ 205,103 $ 15,657 1,907,859 10/1/2013 205,103 1.482% 14,137 $ 440,000 1,702,756 2014 4/1/2014 208,154 12,617 1,494,602 10/1/2014 208,154 1.482% 11,075 440,000 1,286,448 2015 4/1/2015 211,250 9,533 1,075,198 10/1/2015 211,250 1.482% 7,967 440,000 863,948 2016 4/1/2016 214,392 6,402 649,556 10/1/2016 214,392 1.482% 4,813 439,999 435,164 2017 4/1/2017 217,582 3,225 217,582 10/1/2017 217,582 1.482% 1,612 440,001 - Total $ 2,112,962 $ 87,038 $ 2,200,000 35
$1,342,755 Capital Lease d: March 30, 2012 Purpose: s: Security: The lease was issued for the purpose of paying the costs of acquisition of school buses for the City's Charter Schools. Semiannual interest and principal payable on January 1 st and July 1 st The lease is collateralized by the related equipment Lease Agreement: Insurer: Ratings: The City entered into a lease agreement with the Cape Charter School Authority for the lease of this equipment. The lease calls for the rent to be equal to the debt service payments N/A N/A Debt Service Schedule: Fiscal Year Coupon Rate Interest Fiscal Year Debt Service Outstanding $ 1,301,568 $ 2013 1/1/2013 $ 81,812 $ 10,868 1,219,756 7/1/2013 82,495 1.482% 10,185 $ 185,360 1,137,261 2014 1/1/2014 83,184 9,496 1,054,077 7/1/2014 83,878 1.482% 8,802 185,360 970,199 2015 1/1/2015 84,579 8,101 885,620 7/1/2015 85,285 1.482% 7,395 185,360 800,335 2016 1/1/2016 85,997 6,683 714,338 7/1/2016 86,715 1.482% 5,965 185,360 627,623 2017 1/1/2017 87,439 5,241 540,184 7/1/2017 88,169 1.482% 4,511 185,360 452,015 2018 1/1/2018 88,906 3,774 363,109 7/1/2018 89,648 1.482% 3,032 185,360 273,461 2019 1/1/2019 90,397 2,283 183,064 7/1/2019 91,151 1.482% 1,529 185,360 91,913 2020 1/1/2020 91,913 1.482% 767 92,680 - Total $ 1,301,568 $ 88,632 $ 1,390,200 36
ENTERPRISE FUNDS DEBT SCHEDULES 37
REVENUE BONDS 38
$12,595,000 Water and Sewer Refunding Revenue Bonds, Series 2000 d: November 1, 2000 Purpose: s: Security: Insurer: Ratings: The bonds were issued for the purpose of refunding all of the City s outstanding Water and Sewer Revenue Refunding Bonds, Series 1986, and a portion of the City s outstanding Wastewater Assessment Refunding and Improvement Bonds, Series 1992 (Green Area). Semiannual interest payable on April 1 st and October 1 st Annual principal payable on October 1 st The Bonds are secured by a pledge of and lien upon the water and sewer net revenues and impact fees. The bonds are issued on parity with the City s (1) Water and Sewer Revenue Bonds, Series 1991; (2) Water and Sewer Refunding Revenue Bonds, Series 2003; (3) Water and Sewer Revenue Bonds, Series 2006 and (4) Water and Sewer Refunding Revenue Bonds, Series 2011. Assured Guaranty, Ltd. (acquired Financial Security Assurance Inc. (FSA)) Insured Underlying Fitch A A Moody s Aa3 not rated Standard & Poor s Not rated not rated Redemption Provisions: The bonds maturing on or after October 1, 2013 may be redeemed prior to their respective maturities at any time on or after October 1, 2010, at the redemption price of 100%. Debt Service Schedule: Fiscal Year Coupon Rate Interest Fiscal Year Debt Service Outstanding $ 1,185,000 2013 4/01/2013 $ 33,328 10/01/2013 $ 1,185,000 5.625% 33,328 $ 1,251,656 - Total $ 1,185,000 $ 66,656 $ 1,251,656 All-In True Interest Cost... 5.09090% 39