HomeMy Public PortalAboutTAB 11.pdfARBITRAGE CERTIFICATE
The undersigned is the Mayor of the Village of Key Biscayne, Florida (the "Village"), and
hereby certifies the following with respect to the Village's $4,450,000 Stormwater Utility Revenue
Refunding Bonds, Series 2011 (the "Bonds"). The undersigned is the official charged with others
with responsibility for issuing the Bonds.
1. General.
(a) The Bonds are being issued on the date hereof pursuant to Ordinance No.
2011-3 adopted by the Village Council on June 14, 2011, Resolution No. 2011-12 adopted by the
Village Council on May 24, 2011 and Resolution No. 2011-10 adopted by the Village Council on
June 14. 2011 (collectively, the "Bond Ordinance") to provide funds to refund the Village's
$7,200,000 Stormwater Utility Revenue Bonds, Series 1999 (the "Prior Bonds"). Capitalized terms
used herein but not otherwise specifically defined have the same meanings as when used in the Bond
Ordinance.
(b) This certification is made under 26 CFR section 1.148-2(b)(2) relating to
"arbitrage bonds" as defined in Section 148 of the Internal Revenue Code of 1986, as amended (the
"Code"). Terms used herein which are not capitalized or specifically defined have the same
meanings as when used in 26 CFR sections 1.148-1 -1.148-11. The undersigned has investigated the
facts, estimates, and circumstances in existence on the date hereof. Such facts, estimates, and
circumstances, together with the expectations of the Village as to future events, are set forth in
summary form in this certificate. On the basis of such facts, estimates, and circumstances, it is not
expected that the proceeds of the Bonds will be used in any manner that would cause the Bonds to be
"arbitrage bonds" within the meaning of the Code and regulations. To the best of my knowledge and
belief, such expectations are reasonable and there are no facts, estimates, or circumstances that
would materially change them.
2. Source and Use of Proceeds.
(a) The proceeds received from the sale of the Bonds will be $4,450,000 (the
"Sale Proceeds"), representing $4,450,000 principal amount plus accrued interest of $0.
(b) None of the Sale Proceeds will be used to pay costs of issuing the Bonds.
(c) All of the Sale Proceeds, together with other available funds of the Village,
will be used on the date hereof to refund and retire the Prior Bonds.
(d) The Village reasonably expects that the project financed with the Prior Bonds
(the "Project") will continue throughout the term of the Bonds to be owned and operated by the
Village.
32H5889.DOC
3. Flow of Funds.
(a) The Village is required under the Bond Ordinance on each Interest Payment
Date to deposit Stormwater Utility Fees into the Bond Fund, which, together with other moneys
therein, are sufficient to pay the principal of and interest on the Bonds on such Interest Payment
Date.
(b) The Bond Fund has been established to achieve a proper matching of revenues
and debt service within each bond year and will be depleted at least once each year (except for a
reasonable carryover amount that will not exceed the greater of one year's earnings on the Bond
Fund and 1/12 of annual debt service on the Bonds). All amounts in the Bond Fund will be expended
to pay debt service on the Bonds within 13 months of the date of receipt thereof (12 months if the
amounts are interest or income from the investment of such amounts). Amounts in the Bond Fund
will be invested without yield restrictions. Interest earnings and gains resulting from investment of
the Bond Fund will be retained therein and used to pay debt service on the Bonds.
(c) The Rebate Fund is not pledged to pay debt service on the Bonds and will not
be available if needed to pay such debt service.
4. Yield Restrictions
(a) The restrictions set forth in this Section 4 apply to taxable investments. For
this purpose, taxable investments include all investments other than obligations the interest on which
is (i) excluded from gross income for federal income tax purposes; and (ii) not an item of tax
preference for federal alternative minimum tax purposes.
(b) All Sale Proceeds are being expended on the date hereof to retire the Prior
Bonds.
(c) Amounts in the Bond Fund that are not to be used within 13 months of the
date of receipt thereof (12 months if the amounts are interest or income from the investment of such
amounts) to pay debt service on the Bonds will not be invested in taxable investments that produce a
yield over the term of the Bonds that is materially higher than the yield on the Bonds (within the
meaning of 26 CFR section 1.148-2(d)(2).
(d) There are no funds or accounts in existence or that are expected to be
established in addition to the funds referred to herein that are reasonably expected to be used
(directly or indirectly) or that will be pledged (directly or indirectly) to pay debt service on the
Bonds. There are not any amounts that have been reserved or otherwise set aside such that there is a
reasonable assurance that such amounts will be available to pay principal or interest on the Bonds.
In addition, the Village has not entered into, and does not reasonably expect to enter into within the
next thirty days, a hedge contract primarily for the purpose of reducing the Village's risk of interest
rate changes with respect to the Bonds. If any such fund or account is established after the date
hereof, amounts in the fund or account will not be invested at a yield higher than the yield on the
Bonds to the extent necessary to preserve the federal income tax exemption of interest on the Bonds.
32H5889.DOC
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(e) There are no amounts held under any agreement requiring the maintenance of
amounts at a particular level for the direct or indirect benefit of the owners of the Bonds or any
guarantor of the Bonds, excluding for this purpose amounts in which the Village may grant rights
that are superior to the rights of the owners of the Bonds or any guarantor of the Bonds and amounts
that do not exceed reasonable needs for which they are maintained and as to which the required level
is tested no more frequently than every six (6) months and that may be spent without any substantial
restriction other than a requirement to replenish the amount by the next testing date.
(f) There are no amounts that have a sufficiently direct nexus to the Bonds to
conclude that the amounts would have been used for debt service on the Bonds if the proceeds of the
Bonds were not being used for those purposes.
(g) The yield on the Bonds for purposes of this Section is 2.3904%, computed on
the basis of a 30 day month and 360 day year and with interest compounded semiannually. For
purposes of computing the yield, the issue price of the Bond is $4,450,000 (the principal amount
plus $0 accrued interest). See Exhibits "A" and "B" attached hereto.
(h) If any taxable investments are subject to yield restriction under this Section 4,
the yield produced by the taxable investments shall be computed over the term of the Bonds on the
basis of a 30 day month and 360 day year and with interest compounded semiannually. For purposes
of computing yield, the purchase price shall be determined as provided m 26 CFR section 1.148-5,
and yield reduction payments to the Internal Revenue Service and brokerage and selling
commissions may be taken into account to extent permitted thereunder.
5. Arbitrage Rebate. The aggregate face amount of all tax-exempt bonds (other than
private activity bonds and current refunding bonds to the extent the principal amount thereof does
not exceed the outstanding principal amount of the refunded bonds) issued by the Village during
calendar year 2011 is not expected to exceed $5,000,000. Therefore, the Village qualifies for the
exception to arbitrage rebate contained in Section 148(f)(4)(D) of the Code. In the event such
exception or another exception from rebate is not available, the Village has covenanted to satisfy the
arbitrage requirements of Section 148 of the Code including making the necessary calculations and
payments, if any, with respect to the rebate requirement. For purposes of this Section 4, "proceeds"
includes the amount of investment proceeds on the Bonds reasonably expected by the Village on the
date of issuance of the Bonds.
6. Qualified Tax -Exempt Obligations. The Prior Bonds were designated by the Village
as qualified tax-exempt obligations (as defined in section 265(b)(3)(B) of the Code). The principal
amount of the Bonds does not exceed the outstanding principal amount of the Prior Bonds, the
average maturity date of the Bonds is not later than the average maturity date of the Prior Bonds (as
shown in Exhibit "B" attached hereto prepared by the Financial Advisor to the Village), and the
Bonds have a maturity date that is not later than 30 years after the date of issuance of the Prior
Bonds. Accordingly, pursuant to the provisions of Section 265(b)(3)(D)(ii) of the Code, the Bonds
are treated as qualified tax-exempt obligations.
32H5889.DOC
3
7. Miscellaneous.
(a) No more than 50 percent of the proceeds of the Bonds will be invested in
nonpurpose investments having a substantially guaranteed yield for four years or more (within the
meaning of section 149(g)(3)(A)(ii) of the Code). More than 85 percent of the spendable proceeds
of the Bonds (within the meaning of section 149(g)(3)(A)(ii) of the Code) will be reasonably
expended for the governmental purposes within three years of the date of hereof.
(b) Amounts that are subject to yield restriction under Section 4 hereof will not
be invested (directly or indirectly) in federally insured deposits or accounts (within the meaning of
section 149(b)(4)(B) of the Code) if such investment would exceed the limit of 5 percent of the
proceeds of the Bonds contained in section 149(b)(2)(B) of the Code.
(c) No portion of the proceeds of the Bonds will be used as a substitute for other
funds that were otherwise to be used as a source of financing for any portion of the Project.
(d) There are no other obligations of the Village (i) that are or will be sold within
15 days of the date hereof; and (ii) that are to be paid out of substantially the same source of funds
(or that will have substantially the same claim to be paid out of substantially the same source of
funds) as will be used to pay the Bonds.
(e) The Village has covenanted that neither the Village nor any person under the
control or direction of the Village will make any investment or use of the proceeds of the Bonds that
would cause the Bonds to be "arbitrage bonds" within the meaning of section 148 of the Code. No
portion of the proceeds of the Bonds will be intentionally used in the manner described in section
148(a)(1) or (a)(2) of the Code.
(f) The Village has covenanted that neither the Village nor any person under the
control or direction of the Village will make any use of the Project that would cause the Bonds to be
"private activity bonds" within the meaning of section 141 of the Code. The Project will be owned
and operated by the Village, and no portion of the Project will be used in the trade or business of any
person other than a governmental unit (within the meaning of section 141 of the Code).
(g) All investments of amounts deposited in any fund or account created by or
pursuant to the Bond Ordinance, or otherwise containing gross proceeds of the Bonds, within the
meaning of section 148 of the Code shall be acquired, disposed of, and valued (as of the date that
valuation is required by the Bond Ordinance or the Code) at Fair Market Value. For this purpose,
Fair Market Value means the price at which a willing buyer would purchase the investment from a
willing seller in a bona fide arm's length transaction (determined as of the date the contract to
purchase or sell the investment becomes binding) if the investment is traded on an established
securities market (within the meaning of section 1273 of the Code) and, otherwise the term Fair
Market Value means the acquisition price in a bona fide arm's length transaction (as referenced
above) if (i) the investment is a certificate of deposit that is acquired in accordance with applicable
regulations under the Code, (ii) the investment is an agreement with specifically negotiated
withdrawal or reinvestment provisions and a specifically negotiated interest rate (for example, a
guaranteed investment contract, a forward supply contract or other investment agreement) that is
32H5889.DOC
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acquired in accordance with applicable regulations under the Code, (iii) the investment is a United
States Treasury Security -State and Local Government Series that is acquired in accordance with
applicable regulations of the United States Bureau of Public Debt, or (iv) any commingled
investment fund in which the Village and related parties do not own more than a ten percent (10%)
beneficial interest therein the return paid by the fund is without regard to the source of investment.
(h) The Village will use a consistently applied accounting method to account for
investments and expenditures of proceeds of the Bonds. Allocations of Bonds proceeds to
expenditures will be made only with respect to a current outlay of cash of the expenditures. The
Village will not invest proceeds of the Bonds in a commingled fund in which the Village owns more
than 10 percent of the beneficial interest thereof. The Village will maintain books and records until
six years after the date of retirement or redemption of the Bonds sufficient to (i) establish the
accounting method used, (ii) account for all investment of proceeds of the Bonds, and (iii)
substantiate the allocation of proceeds of the Bonds to expenditures. In the event such allocations of
Bond proceeds to expenditures are not made within 60 days after the date of five years after the date
hereof, the Village will use a specific tracing accounting method to account for investment and
expenditures of proceeds of the Bonds.
[Remainder of this page intentionally left blank]
32H5889.DOC
5
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this 18th day of July,
2011.
VILLAGE OF KEY BISCAYNE, FLORIDA
B
lin Caplan, ' . yor
32H5889.DOC
6
EXHIBIT "A"
ISSUE PRICE CERTIFICATE
This certificate is delivered in connection with the issuance of $4,450,000 Village of Key
Biscayne, Florida, Stormwater Utility Revenue Refunding Bonds, Series 2011 (the "Bonds"), being
issued on the date hereof.
Pinnacle Public Finance, Inc. (the "Purchaser") does hereby certify as follows:
1. The Purchaser is purchasing the Bonds for its own account and without any
present intent to reoffer the Bonds to the public.
2. The total amount paid as the purchase price of the Bonds is $4,450,000,
representing $4,450,000 principal amount and $0 accrued interest.
IN WITNESS WHEREOF, the Purchaser has caused this certificate to be executed in its
name on this 18th day of July, 2011 by one of its officers duly authorized as of such date.
PINNACLE PUBLIC FINANCE, INC.
By:
l
Paul 1'Iaerie, President
32H5889.DOC
EXHIBIT "B"
REFUNDING ANALYSIS PREPARED BY FINANCIAL ADVISOR
32H5889.DOC
SUMMARY OF REFUNDING RESULTS
Village of Key Biscayne, Florida [Stormwater Utility] Pin
Stormwater Utility Revenue Refunding Bonds, Series 2011
--PINNACLE PUBLIC FINANCE FINAL BID--
--GRANDFATHERED BQ STATUS --
--05/23/2011, 1:OOPM--
Dated Date 07/18/2011
Delivery Date 07/18/2011
Arbitrage yield 2.390408%
Escrow yield
Bond Par Amount 4,450,000.00
True Interest Cost 2.390408%
Net Interest Cost 2.390000%
Average Coupon 2.390000%
Average Life 4.493
Par amount of refunded bonds 4,450,000.00
Average coupon of refunded bonds 4.130000%
Average life of refunded bonds 4.525
PV of prior debt to 07/18/2011 @ 2.390408% 4,786,713.71
Net PV Savings 277,649.34
Percentage savings of refunded bonds 6.239311%
Percentage savings of refunding bonds 6.239311%
May 23, 2011 1:03 pm Prepared by Estrada Hinojosa & Company, Inc. (Finance 6.017 Key Biscayne, Vi1...:ZZZ11C-CASE A,Z11REFA) Page 1
SOURCES AND USES OF FUNDS
Village of Key Biscayne, Florida [Stormwater Utility] Pin
Stormwater Utility Revenue Refunding Bonds, Series 2011
--PINNACLE PUBLIC FINANCE FINAL BID--
--GRANDFATHERED BQ STATUS --
--05/23/2011, 1:OOPM--
Dated Date
Delivery Date
Sources:
07/18/2011
07/18/2011
Bond Proceeds:
Par Amount
Other Sources of Funds:
Issuer Contribution
4,450,000.00
59,064.37
4,509,064.37
Uses:
Refunding Escrow Deposits:
Cash Deposit
Delivery Date Expenses:
Cost of Issuance
4,459,064.37
50,000.00
4,509,064.37
May 23, 2011 1:03 pm Prepared by Estrada Hinojosa & Company, Inc. (Finance 6.017 Key Biscayne, Vi1...:ZZZ11C-CASE A,Z11REFA) Page 2
SAVINGS
Village of Key Biscayne, Florida [Stormwater Utility] Pin
Stormwater Utility Revenue Refunding Bonds, Series 2011
--PINNACLE PUBLIC FINANCE FINAL BID--
--GRANDFATHERED BQ STATUS --
--05/23/2011, 1:OOPM--
Date
Present Value
Prior Prior Prior Refunding to 07/18/2011
Debt Service Receipts Net Cash Flow Debt Service Savings @ 2.3904084%
10/01/2011 451,323.89 59,064.37 392,259.52 341,566.43 50,693.09 50,165.50
10/01/2012 592,516.19 592,516.19 573,707.00 18,809.19 19,166.75
10/01/2013 594,506.00 594,506.00 572,354.50 22,151.50 21,798.39
10/01/2014 596,127.50 596,127.50 575,763.00 20,364.50 19,541.97
10/01/2015 601,923.00 601,923.00 573,813.00 28,110.00 26,001.25
10/01/2016 606,937.19 606,937.19 571,624.00 35,313.19 31,662.89
10/01/2017 610,416.50 610,416.50 574,196.00 36,220.50 31,599.29
10/01/2018 618,114.50 618,114.50 571,409.50 46,705.00 39,588.37
10/01/2019 619,573.50 619,573.50 573,384.00 46,189.50 38,124.93
5,291,438.28 59,064.37 5,232,373.91 4,927,817.43 304,556.48 277,649.34
Savings Summary
Dated Date
Delivery Date
PV of savings from cash flow
07/18/2011
07/18/2011
277,649.34
Net PV Savings 277,649.34
May 23, 2011 1:03 pm Prepared by Estrada Hinojosa & Company, Inc. (Finance 6.017 Key Biscayne, Vi1...:ZZZ11C-CASE_A,Z11REFA) Page 3
BOND DEBT SERVICE
Village of Key Biscayne, Florida [Stormwater Utility] Pin
Stormwater Utility Revenue Refunding Bonds, Series 2011
--PINNACLE PUBLIC FINANCE FINAL BID--
--GRANDFATHERED BQ STATUS --
--05/23/2011, 1:OOPM--
Dated Date 07/18/2011
Delivery Date 07/18/2011
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
10/01/2011 320,000 2.390% 21,566.43 341,566.43 341,566.43
04/01/2012 49,353.50 49,353.50
10/01/2012 475,000 2.390% 49,353.50 524,353.50 573,707.00
04/01/2013 43,677.25 43,677.25
10/01/2013 485,000 2.390% 43,677.25 528,677.25 572,354.50
04/01/2014 37,881.50 37,881.50
10/01/2014 500,000 2.390% 37,881.50 537,881.50 575,763.00
04/01/2015 31,906.50 31,906.50
10/01/2015 510,000 2.390% 31,906.50 541,906.50 573,813.00
04/01/2016 25,812.00 25,812.00
10/01/2016 520,000 2.390% 25,812.00 545,812.00 571,624.00
04/01/2017 19,598.00 19,598.00
10/01/2017 535,000 2.390% 19,598.00 554,598.00 574,196.00
04/01/2018 13,204.75 13,204.75
10/01/2018 545,000 2.390% 13,204.75 558,204.75 571,409.50
04/01/2019 6,692.00 6,692.00
10/01/2019 560,000 2.390% 6,692.00 566,692.00 573,384.00
4,450,000 477,817.43 4,927,817.43 4,927,817.43
May 23, 2011 1:03 pm Prepared by Estrada Hinojosa & Company, Inc. (Finance 6.017 Key Biscayne, Vi1...:ZZZ11C-CASE A,Z11REFA) Page 4
SUMMARY OF BONDS REFUNDED
Village of Key Biscayne, Florida [Stormwater Utility] Pin
Stormwater Utility Revenue Refunding Bonds, Series 2011
--PINNACLE PUBLIC FINANCE FINAL BID--
--GRANDFATHERED BQ STATUS --
--05/23/2011, 1:OOPM--
Bond
Maturity Interest Par Ca11 Call
Date Rate Amount Date Price
Stormwater Utility Revenue Bonds, Series 1999, S99:
SERIALS 10/01/2011 4.130% 405,000.00 07/19/2011 100.000
10/01/2012 4.130% 425,000.00 07/19/2011 100.000
10/01/2013 4.130% 445,000.00 07/19/2011 100.000
10/01/2014 4.130% 465,000.00 07/19/2011 100.000
10/01/2015 4.130% 490,000.00 07/19/2011 100.000
10/01/2016 4.130% 515,000.00 07/19/2011 100.000
10/01/2017 4.130% 540,000.00 07/19/2011 100.000
10/01/2018 4.130% 570,000.00 07/19/2011 100.000
10/01/2019 4.130% 595,000.00 07/19/2011 100.000
4,450,000.00
May 23, 2011 1:03 pm Prepared by Estrada Hinojosa & Company, Inc. (Finance 6.017 Key Biscayne, Vi1...:ZZZ11C-CASE A,Z11REFA) Page 5
PRIOR BOND DEBT SERVICE
Village of Key Biscayne, Florida [Stormwater Utility] Pin
Stormwater Utility Revenue Refunding Bonds, Series 2011
--PINNACLE PUBLIC FINANCE FINAL BID--
--GRANDFATHERED BQ STATUS --
--05/23/2011, 1:OOPM--
Dated Date
Delivery Date
07/18/2011
07/18/2011
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
10/01/2011 405,000 4.130% 46,323.89 451,323.89 451,323.89
01/01/2012 42,107.90 42,107.90
04/01/2012 41,650.20 41,650.20
07/01/2012 41,650.20 41,650.20
10/01/2012 425,000 4.130% 42,107.90 467,107.90 592,516.19
01/01/2013 37,683.70 37,683.70
04/01/2013 36,864.49 36,864.49
07/01/2013 37,274.10 37,274.10
10/01/2013 445,000 4.130% 37,683.70 482,683.70 594,506.00
01/01/2014 33,051.32 33,051.32
04/01/2014 32,332.81 32,332.81
07/01/2014 32,692.06 32,692.06
10/01/2014 465,000 4.130% 33,051.32 498,051.32 596,127.50
01/01/2015 28,210.73 28,210.73
04/01/2015 27,597.45 27,597.45
07/01/2015 27,904.09 27,904.09
10/01/2015 490,000 4.130% 28,210.73 518,210.73 601,923.00
01/01/2016 23,109.90 23,109.90
04/01/2016 22,858.70 22,858.70
07/01/2016 22,858.70 22,858.70
10/01/2016 515,000 4.130% 23,109.90 538,109.90 606,937.19
01/01/2017 17,748.82 17,748.82
04/01/2017 17,362.97 17,362.97
07/01/2017 17,555.89 17,555.89
10/01/2017 540,000 4.130% 17,748.82 557,748.82 610,416.50
01/01/2018 12,127.49 12,127.49
04/01/2018 11,863.85 11,863.85
07/01/2018 11,995.67 11,995.67
10/01/2018 570,000 4.130% 12,127.49 582,127.49 618,114.50
01/01/2019 6,193.87 6,193.87
04/01/2019 6,059.22 6,059.22
07/01/2019 6,126.54 6,126.54
10/01/2019 595,000 4.130% 6,193.87 601,193.87 619,573.50
4,450,000 841,438.28 5,291,438.28 5,291,438.28
May 23, 2011 1:03 pm Prepared by Estrada Hinojosa & Company, Inc. (Finance 6.017 Key Biscayne, Vi1...:ZZZ11C-CASE_A,Z11REFA) Page 6
ESCROW REQUIREMENTS
Village of Key Biscayne, Florida [Stormwater Utility] Pin
Stormwater Utility Revenue Refunding Bonds, Series 2011
--PINNACLE PUBLIC FINANCE FINAL BID--
--GRANDFATHERED BQ STATUS --
--05/23/2011, 1:OOPM--
Period Principal
Ending Interest Redeemed
Total
07/19/2011 9,063.37 4,450,000.00 4,459,063.37
9,063.37 4,450,000.00 4,459,063.37
May 23, 2011 1:03 pm Prepared by Estrada Hinojosa & Company, Inc. (Finance 6.017 Key Biscayne, Vi1...:ZZZ11C-CASE A,Z11REFA) Page 7
ESCROW COST DETAIL
Village of Key Biscayne, Florida [Stormwater Utility] Pin
Stormwater Utility Revenue Refunding Bonds, Series 2011
--PINNACLE PUBLIC FINANCE FINAL BID--
--GRANDFATHERED BQ STATUS --
--05/23/2011, 1:OOPM--
Purchase Cost of Cash Total
Date Securities Deposit Escrow Cost
Global Proceeds Escrow:
07/18/2011 4,459,064.37 4,459,064.37
0 4,459,064.37 4,459,064.37
May 23, 2011 1:03 pm Prepared by Estrada Hinojosa & Company, Inc. (Finance 6.017 Key Biscayne, Vi1...:ZZZ11C-CASE A,Z11REFA) Page 8
ESCROW SUFFICIENCY
Village of Key Biscayne, Florida [Stormwater Utility] Pin
Stormwater Utility Revenue Refunding Bonds, Series 2011
--PINNACLE PUBLIC FINANCE FINAL BID--
--GRANDFATHERED BQ STATUS --
--05/23/2011, 1:OOPM--
Date
Escrow Net Escrow Excess Excess
Requirement Receipts Receipts Balance
07/18/2011
07/19/2011
4,459,063.37
4,459,064.37 4,459,064.37
-4,459,063.37
4,459,064.37
1.00
4,459,063.37 4,459,064.37 1.00
May 23, 2011 1:03 pm Prepared by Estrada Hinojosa & Company, Inc. (Finance 6.017 Key Biscayne, Vi1...:ZZZ1 IC -CASE A,Z11REFA) Page 9
PROOF OF ARBITRAGE YIELD
Village of Key Biscayne, Florida [Stormwater Utility] Pin
Stormwater Utility Revenue Refunding Bonds, Series 2011
--PINNACLE PUBLIC FINANCE FINAL BID--
--GRANDFATHERED BQ STATUS --
--05/23/2011, 1:OOPM--
Date
Present Value
to 07/18/2011
Debt Service @ 2.3904084%
10/01/2011 341,566.43 339,924.56
04/01/2012 49,353.50 48,536.16
10/01/2012 524,353.50 509,579.17
04/01/2013 43,677.25 41,945.26
10/01/2013 528,677.25 501,716.36
04/01/2014 37,881.50 35,525.06
10/01/2014 537,881.50 498,464.67
04/01/2015 31,906.50 29,219.11
10/01/2015 541,906.50 490,402.05
04/01/2016 25,812.00 23,082.86
10/01/2016 545,812.00 482,337.61
04/01/2017 19,598.00 17,114.33
10/01/2017 554,598.00 478,593.16
04/01/2018 13,204.75 11,260.52
10/01/2018 558,204.75 470,394.09
04/01/2019 6,692.00 5,572.68
10/01/2019 566,692.00 466,332.35
4,927,817.43 4,450,000.00
Delivery date
Par Value
Proceeds Summary
07/18/2011
4,450,000.00
Target for yield calculation 4,450,000.00
May 23, 2011 1:03 pm Prepared by Estrada Hinojosa & Company, Inc.(Finance 6.017 Key Biscayne, Vi1...:ZZZ11C-CASE A,Z11REFA) Page 10
ESCROW STATISTICS
Village of Key Biscayne, Florida [Stormwater Utility] Pin
Stormwater Utility Revenue Refunding Bonds, Series 2011
--PINNACLE PUBLIC FINANCE FINAL BID--
--GRANDFATHERED BQ STATUS --
--05/23/2011, 1:OOPM--
Modified Yield to Yield to Perfect Value of
Total Duration Receipt Disbursement Escrow Negative Cost of
Escrow Cost (years) Date Date Cost Arbitrage Dead Time
Global Proceeds Escrow:
4,459,064.37
4,458,770.05 294.32
4,459,064.37 4,458,770.05 0.00 294.32
Delivery date 07/18/2011
Arbitrage yield 2.390408%
May 23, 2011 1:03 pm Prepared by Estrada Hinojosa & Company, Inc.(Finance 6.017 Key Biscayne, Vi1...:ZZZ11C-CASE_A,Z11REFA) Page 11
BOND PRICING
Village of Key Biscayne, Florida [Stormwater Utility] Pin
Stormwater Utility Revenue Refunding Bonds, Series 2011
--PINNACLE PUBLIC FINANCE FINAL BID--
--GRANDFATHERED BQ STATUS --
--05/23/2011, 1:OOPM--
Bond Component
Maturity
Date
# Bonds
Amount Rate Yield Price
Current Interest Bonds:
10/01/2011 64 320,000 2.390% 2.390% 100.000
10/01/2012 95 475,000 2.390% 2.390% 100.000
10/01/2013 97 485,000 2.390% 2.390% 100.000
10/01/2014 100 500,000 2.390% 2.390% 100.000
10/01/2015 102 510,000 2.390% 2.390% 100.000
10/01/2016 104 520,000 2.390% 2.390% 100.000
10/01/2017 107 535,000 2.390% 2.390% 100.000
10/01/2018 109 545,000 2.390% 2.390% 100.000
10/01/2019 112 560,000 2.390% 2.390% 100.000
890 4,450,000
Dated Date
Delivery Date
First Coupon
Par Amount
Original Issue Discount
Production
Underwriter's Discount
Purchase Price
Accrued Interest
07/18/2011
07/18/2011
10/01/2011
4,450,000.00
4,45 0,000.00 100.000000%
4,450,000.00 100.000000%
Net Proceeds 4,450,000.00
May 23, 2011 1:03 pm Prepared by Estrada Hinojosa & Company, Inc.(Finance 6.017 Key Biscayne, Vi1...:ZZZ11C-CASE_A,Z11REFA) Page 12
AVERAGE TAKEDOWN
Village of Key Biscayne, Florida [Stormwater Utility] Pin
Stormwater Utility Revenue Refunding Bonds, Series 2011
--PINNACLE PUBLIC FINANCE FINAL BID--
--GRANDFATHERED BQ STATUS --
--05/23/2011, 1:OOPM--
Dated Date 07/18/2011
Delivery Date 07/18/2011
Bond Component
Maturity Par Takedown Takedown
Date Amount $/Bond Amount
Current Interest Bonds:
10/01/2011 320,000
10/01/2012 475,000
10/01/2013 485,000
10/01/2014 500,000
10/01/2015 510,000
10/01/2016 520,000
10/01/2017 535,000
10/01/2018 545,000
10/01/2019 560,000
4,450,000 0.0000 0
May 23, 2011 1:03 pm Prepared by Estrada Hinojosa & Company, Inc.(Finance 6.017 Key Biscayne, Vi1...:ZZZ11C-CASE A,Z11REFA) Page 13
FORM 8038 STATISTICS
Village of Key Biscayne, Florida [Stormwater Utility] Pin
Stormwater Utility Revenue Refunding Bonds, Series 2011
--PINNACLE PUBLIC FINANCE FINAL BID--
--GRANDFATHERED BQ STATUS --
--05/23/2011, 1:OOPM--
Dated Date 07/18/2011
Delivery Date 07/18/2011
Redemption
Bond Component Date Principal Coupon Price Issue Price at Maturity
Current Interest Bonds:
10/01/2011 320,000.00 2.390% 100.000 320,000.00 320,000.00
10/01/2012 475,000.00 2.390% 100.000 475,000.00 475,000.00
10/01/2013 485,000.00 2.390% 100.000 485,000.00 485,000.00
10/01/2014 500,000.00 2.390% 100.000 500,000.00 500,000.00
10/01/2015 510,000.00 2.390% 100.000 510,000.00 510,000.00
10/01/2016 520,000.00 2.390% 100.000 520,000.00 520,000.00
10/01/2017 535,000.00 2.390% 100.000 535,000.00 535,000.00
10/01/2018 545,000.00 2.390% 100.000 545,000.00 545,000.00
10/01/2019 560,000.00 2.390% 100.000 560,000.00 560,000.00
4,450,000.00
4,450,000.00 4,450,000.00
Stated Weighted
Maturity Interest Issue Redemption Average
Date Rate Price at Maturity Maturity Yield
Final Maturity 10/01/2019 2.390% 560,000.00 560,000.00
Entire Issue 4,450,000.00 4,450,000.00 4.4927 2.3904%
Proceeds used for accrued interest
Proceeds used for bond issuance costs (including underwriters' discount)
Proceeds used for credit enhancement
Proceeds allocated to reasonably required reserve or replacement fund
Proceeds used to currently refund prior issues
Proceeds used to advance refund prior issues
Remaining weighted average maturity of the bonds to be currently refunded
Remaining weighted average maturity of the bonds to be advance refunded
0.00
50,000.00
0.00
0.00
4,459,064.37
0.00
4.5252
0.0000
May 23, 2011 1:03 pm Prepared by Estrada Hinojosa & Company, Inc.(Finance 6.017 Key Biscayne, Vi1...:ZZZ11C-CASE_A,Z11REFA) Page 14
FORM 8038 STATISTICS
Village of Key Biscayne, Florida [Stormwater Utility] Pin
Stormwater Utility Revenue Refunding Bonds, Series 2011
--PINNACLE PUBLIC FINANCE FINAL BID--
--GRANDFATHERED BQ STATUS --
--05/23/2011, 1:OOPM--
Refunded Bonds
Bond
Component Date
Principal Coupon Price
Issue Price
Stormwater Utility
SERIALS
SERIALS
SERIALS
SERIALS
SERIALS
SERIALS
SERIALS
SERIALS
SERIALS
Revenue Bonds,
10/01/2011
10/01/2012
10/01/2013
10/01/2014
10/01/2015
10/01/2016
10/01/2017
10/01/2018
10/01/2019
Series 1999:
405,000.00 4.130% 100.000
425,000.00 4.130% 100.000
445,000.00 4.130% 100.000
465,000.00 4.130% 100.000
490,000.00 4.130% 100.000
515,000.00 4.130% 100.000
540,000.00 4.130% 100.000
570,000.00 4.130% 100.000
595,000.00 4.130% 100.000
405,000.00
425,000.00
445,000.00
465,000.00
490,000.00
515,000.00
540,000.00
570,000.00
595,000.00
4,450,000.00
4,450,000.00
Last
Call
Date
Issue
Date
Remaining
Weighted
Average
Maturity
Stormwater Utility Revenue Bonds, Series 1999
All Refunded Issues
07/19/2011 01/12/1999
07/19/2011
4.5252
4.5252
May 23, 2011 1:03 pm Prepared by Estrada Hinojosa & Company, Inc.(Finance 6.017 Key Biscayne, Vi1...:ZZZ11C-CASE A,Z11REFA) Page 15