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HomeMy Public PortalAboutTAB 10.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 $7,130,000 Capital Improvement Revenue Refunding Bonds, Series 2011B (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. 2011-8 adopted by the Village Council on June 28, 2011 and Resolution No. 2011-15 adopted by the Village Council on June 28, 2011 (collectively, the "Bond Ordinance") for the purpose of refunding the Village's $9,987,551 Capital Improvement Revenue Bonds, Series 2002. 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 $7,130,000 (the "Sale Proceeds"), representing $7,130,000 principal amount plus accrued interest of $0. (b) $3,760 of the Sale Proceeds will be used to pay costs of issuing the Bonds. (c) The balance 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. 32L046403.DOC 3. Flow of Funds. (a) The Village is required under the Bond Ordinance on each Interest Payment Date to deposit Non -Ad Valorem Revenues 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. 32L046403.DOC 2 (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 2.4173%, computed on the basis of a 360 day year consisting of twelve 30 -day months and with interest compounded quarterly. For purposes of computing the yield, the issue price of the Bond is $7,130,000 (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 quarterly. For purposes of computing yield, the purchase price shall be determined as provided in 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(1)(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. (a) 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 outstanding principal amount of the Prior Bonds is $7,126,240 (the "Prior Principal Outstanding"). 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), 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 32L046403.DOC 3 portion of the Bonds equal to the Prior Principal Outstanding are treated as a qualified tax-exempt obligations. (b) In the Bond Ordinance, the Village has designated the portion of the Bonds that exceeds the Prior Principal Outstanding ($3,760) as qualified tax-exempt obligations under Section 265(b)(3)(B) of the Code. The Village reasonably expects that the aggregate face amount of all tax-exempt obligations issued by the Village during calendar year 2011 will not exceed $10 million. The Village represents that neither the Village nor any subordinate entities or entities issuing tax-exempt obligations on behalf of the Village within the meaning of Section 265(b)(3) of the Code have issued tax-exempt obligations during calendar year 2011 and neither the Village nor any such entities expect to issue tax-exempt obligations during calendar year 2011. For purposes of this paragraph (b): (i) The Village and all entities that issue obligations on behalf of the Village are treated as the Village, and all obligations issued by any entity subordinate to another entity are treated as issued by such other entity. (ii) The term "obligation" includes any bond or Bond (whether or not recourse), any warrant, any lease purchase agreement, and any other instrument that is treated as an obligation for purposes of section 103 of the Code, except that such term shall not include: any private activity bond (as defined in section 141 of the Code) or any current refunding obligation; (iii) An obligation is "tax-exempt" if: (a) interest on the obligation is excluded from gross income for federal income tax purposes; (b) at the time of issuance of the obligation it was represented to the purchaser that interest on the obligation is or may be excluded from such gross income; or (c) the proceeds of the obligation were derived (directly or indirectly) from proceeds of a tax-exempt obligation. (iv) An obligation that is part of an issue is a refunding obligation to the extent that: (a) proceeds of the issue are used to pay principal or interest on an obligation that is part of another issue; and (b) the amount of the refunding obligation does not exceed the amount of the refunded obligation (determined at the time of issuance of the refunding obligation). For this purpose, the amount of an obligation is the stated principal amount plus accrued unpaid interest (or, if the original issue premium or discount exceeds 2 percent, the present value of the obligation). (v) A refunding obligation is a current refunding obligation if no portion of the proceeds of the issue of which the refunding obligation is a part is used (directly or indirectly) to pay principal, interest, or call premium on any obligation that is part of another issue more than 90 days after the date of issue of the refunding obligation. 32L046403.D0C 4 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) Except as provided in the following sentence, 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. On the date hereof, the Village is issuing its $1,865,000 Capital Improvement and Land Acquisition Revenue Refunding Bonds, Series 2011 (the "Series 2011 Capital Improvement and Land Acquisition Bonds") for the purpose of refunding a prior issue of bonds separate from the Prior Bonds. Pursuant to 26 CFR section 1.150-1(c)(3), the Bonds and the Series 2011 Capital Improvement and Land Acquisition Bonds are treated as separate issues. (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 32L046403.D0C 5 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 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] 32L046403.DOC 6 IN WITNESS WHEREOF, the undersigned has hereunto set his hand this 1st day of August, 2011. VILLAGE OF KEY BISCAYNE, FLORIDA 32L046403.DOC 7 EXHIBIT "A" ISSUE PRICE CERTIFICATE This certificate is delivered in connection with the issuance of $7,130,000 Village of Key Biscayne, Florida, Capital Improvement Revenue Refunding Bonds, Series 2011B (the "Bonds"), being issued on the date hereof. SunTrust Bank (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 $7,130,000, representing $7,130,000 principal amount and $0 accrued interest. IN WITNESS WHEREOF, the Purchaser has caused this certificate to be executed in its name on this 1st day of August, 2011 by one of its officers duly authorized as of such date. SUNTRUST BA By: teve Leth, Senior Vice President 32L046403.DOC EXHIBIT "B" REFUNDING ANALYSIS 32L046403.DOC Jun 21, 2011 10:22 am Prepared by DBC Finance (Finance 6.016 Key Biscane:KEY-2011A) TABLE OF CONTENTS Village of Key Biscayne Series 2011A Report Page Sources and Uses of Funds Bond Summary Statistics Bond Pricing 2 3 Bond Debt Service 5 Jun 21, 2011 10:22 am Prepared by DBC Finance (Finance 6.016 Key Biscane:KEY-2011A) Page 1 SOURCES AND USES OF FUNDS Village of Key Biscayne Series 2011A Sources: Bond Proceeds: Par Amount 7,130,000.00 7,130,000.00 Uses: Project Fund Deposits: Project Fund Other Uses of Funds: Additional Proceeds 7,126,240.00 3,760.00 7,130,000.00 Jun 21, 2011 10:22 am Prepared by DBC Finance (Finance 6.016 Key Biscane:KEY-2011A) Page 2 BOND SUMMARY STATISTICS Village of Key Biscayne Series 2011A Dated Date Delivery Date Last Maturity Arbitrage Yield True Interest Cost (TIC) Net Interest Cost (NIC) All -In TIC Average Coupon Average Life (years) Duration of Issue (years) Par Amount Bond Proceeds Total Interest Net Interest Total Debt Service Maximum Annual Debt Service Average Annual Debt Service Underwriter's Fees (per 51000) Average Takedown Other Fee Total Underwriter's Discount 08/01/2011 08/01/2011 11/01/2022 3.606110% 3.606110% 3.590000% 3.606110% 3.590000% 6.125 5.373 7,130,000.00 7,130,000.00 1,567,753.11 1,567,753.11 8,697,753.11 774,868.63 773,133.61 Bid Price 100.000000 Bond Component Par Average Average Value Price Coupon Life Bond Component 7,130,000.00 100.000 3.590% 6.125 7,130,000.00 6.125 Par Value + Accrued Interest + Premium (Discount) - Underwriter's Discount - Cost of Issuance Expense - Other Amounts All -In Arbitrage TIC TIC Yield 7,130,000.00 7,130,000.00 7,130,000.00 Target Value 7,130,000.00 7,130,000.00 7,130,000.00 Target Date 08/01/2011 08/01/2011 08/01/2011 Yield 3.606110% 3.606110% 3.606110% Jun 21, 2011 10:22 am Prepared by DBC Finance (Finance 6.016 Key Biscane:KEY-2011A) Page 3 BOND PRICING Village of Key Biscayne Series 2011A Bond Component Maturity Date Amount Rate Yield Price Bond Component: 11/01/2011 130,000 3.590% 3.590% 100.000 02/01/2012 135,000 3.590% 3.590% 100.000 05/01/2012 130,000 3.590% 3.590% 100.000 08/01/2012 130,000 3.590% 3.590% 100.000 11/01/2012 135,000 3.590% 3.590% 100.000 02/01/2013 140,000 3.590% 3.590% 100.000 05/01/2013 135,000 3.590% 3.590% 100.000 08/01/2013 135,000 3.590% 3.590% 100.000 11/01/2013 140,000 3.590% 3.590% 100.000 02/01/2014 140,000 3.590% 3.590% 100.000 05/01/2014 140,000 3.590% 3.590% 100.000 08/01/2014 140,000 3.590% 3.590% 100.000 11/01/2014 145,000 3.590% 3.590% 100.000 02/01/2015 150,000 3.590% 3590% 100.000 05/01/2015 145,000 3.590% 3.590% 100.000 08/01/2015 145,000 3.590% 3.590% 100.000 11/01/2015 150,000 3.590% 3.590% 100.000 02/01/2016 150,000 3.590% 3.590% 100.000 05/01/2016 150,000 3.590% 3.590% 100.000 08/01/2016 150,000 3.590% 3.590% 100.000 11/01/2016 160,000 3.590% 3.590% 100.000 02/01/2017 155,000 3.590% 3.590% 100.000 05/01/2017 155,000 3.590% 3.590% 100.000 08/01/2017 155,000 3.590% 3.590% 100.000 11/01/2017 165,000 3.590% 3.590% 100.000 02/01/2018 160,000 3.590% 3.590% 100.000 05/01/2018 160,000 3.590% 3.590% 100.000 08/01/2018 160,000 3.590% 3.590% 100.000 11/01/2018 175,000 3.590% 3.590% 100.000 02/01/2019 170,000 3.590% 3.590% 100.000 05/01/2019 165,000 3.590% 3.590% 100.000 08/01/2019 165,000 3.590% 3.590% 100.000 11/01/2019 180,000 3.590% 3.590% 100.000 02/01/2020 180,000 3.590% 3.590% 100.000 05/01/2020 175,000 3.590% 3.590% 100.000 08/01/2020 175,000 3.590% 3.590% 100.000 11/01/2020 175,000 3.590% 3.590% 100.000 02/01/2021 185,000 3.590% 3.590% 100.000 05/01/2021 180,000 3.590% 3.590% 100.000 08/01/2021 180,000 3.590% 3.590% 100.000 11/01/2021 185,000 3.590% 3.590% 100.000 02/01/2022 185,000 3.590% 3.590% 100.000 05/01/2022 185,000 3.590%© 3.590% 100.000 08/01/2022 185,000 3.590% 3,590% 100.000 11/01/2022 200,000 3.590% 3.590% 100.000 7,130,000 Jun 21, 2011 10:22 am Prepared by DBC Finance (Finance 6.016 Key Biscane:KEY-2011 A) Page 4 BOND PRICING Village of Key Biscayne Series 2011A Dated Date Delivery Date First Coupon Par Amount Original Issue Discount Production Underwriter's Discount Purchase Price Accrued Interest 08/01/2011 08/01/2011 11/01/2011 7,130,000.00 7,130,000.00 100.000000% 7,130,000.00 100,000000% Net Proceeds 7,130,000.00 Jun 21, 2011 10:22 am Prepared by DBC Finance (Finance 6.016 Key Biscane:KEY-2011A) Page 5 BOND DEBT SERVICE Village of Key Biscayne Series 201 IA Period Annual Ending Principal Coupon Interest Debt Service Debt Service 11/01/2011 130,000 3.590% 63,991.75 193,991.75 193,991.75 02/01/2012 135,000 3.590% 62,825.00 197,825.00 05/01/2012 130,000 3.590% 61,613.38 191,613.38 08/01/2012 130,000 3.590% 60,446.63 190,446.63 11/01/2012 135,000 3.590% 59,279.88 194,279.88 774,164.89 02/01/2013 140,000 3.590% 58,068.25 198,068.25 05/01/2013 135,000 3.590% 56,811,75 191,811.75 08/01/2013 135,000 3.590% 55,600.13 190,600.13 11/01/2013 140,000 3.590% 54,388,50 194,388.50 774,868.63 02/01/2014 140,000 3.590% 53,132.00 193,132.00 05/01/2014 140,000 3.590% 51,875.50 191,875.50 08/01/2014 140,000 3.590% 50,619.00 190,619.00 11/01/2014 145,000 3.590% 49,362.50 194,362.50 769,989.00 02/01/2015 150,000 3.590% 48,061.13 198,061.13 05/01/2015 145,000 3.590% 46,714.88 191,714.88 08/01/2015 145,000 3.590% 45,413.50 190,413.50 11/01/2015 150,000 3.590% 44,112,13 194,112.13 774,301.64 02/01/2016 150,000 3.590% 42,765.88 192,765.88 05/01/2016 150,000 3.590% 41,419.63 191,419.63 08/01/2016 150,000 3.590% 40,073.38 190,073.38 11/01/2016 160,000 3.590% 38,727.13 198,727.13 772,986.02 02/01/2017 155,000 3.590% 37,291.13 192,291.13 05/01/2017 155,000 3.590% 35,900.00 190,900.00 08/01/2017 155,000 3.590% 34,508.88 189,508.88 11/01/2017 165,000 3.590% 33,117.75 198,117.75 770,817.76 02/01/2018 160,000 3.590% 31,636.88 191,636.88 05/01/2018 160,000 3.590% 30,200.88 190,200.88 08/01/2018 160,000 3.590% 28,764.88 188,764.88 11/01/2018 175,000 3.590% 27,328.88 202,328.88 772,931.52 02/01/2019 170,000 3.590% 25,758.25 195,758.25 05/01/2019 165,000 3.590% 24,232.50 189,232.50 08/01/2019 165,000 3.590% 22,751.63 187,751.63 11/01/2019 180,000 3.590% 21,270.75 201,270.75 774,013.13 02/01/2020 180,000 3.590% 19,655.25 199,655.25 05/01/2020 175,000 3.590% 18,039.75 193,039.75 08/01/2020 175,000 3.590% 16,469.13 191,469.13 11/01/2020 175,000 3.590% 14,898.50 189,898.50 774,062.63 02/01/2021 185,000 3.590% 13,327.88 198,327.88 05/01/2021 180,000 3.590% 11,667.50 191,667.50 08/01/2021 180,000 3.590% 10,052.00 190,052.00 11/01/2021 185,000 3.590% 8,436.50 193,436.50 773,483.88 02/01/2022 185,000 3.590% 6,776.13 191,776.13 05/01/2022 I85,000 3.590% 5,115.75 190,115.75 08/01/2022 185,000 3.590% 3,455.38 188,455.38 11/01/2022 200,000 3.590% 1,795,00 201,795.00 772,142.26 7,130,000 1,567,753.11 8,697,753,11 8,697,753.11 Jun 21, 2011 10:22 am Prepared by DBC Finance (Finance 6.016 Key Biscane:KEY-2011B) TABLE OF CONTENTS Village of Key Biscayne Series 2011A Report Page Sources and Uses of Funds 1 Bond Summary Statistics 2 Bond Pricing . . . . . . . . . 3 Bond Debt Service 5 Jun 21, 2011 10:22 am Prepared by DBC Finance (Finance 6.016 Key Biscane:KEY-2011B) Page 1 SOURCES AND USES OF FUNDS Village of Key Biscayne Series 2011A Sources: Bond Proceeds: Par Amount 7,130,000.00 7,130,000.00 Uses; Project Fund Deposits: Project Fund 7,126,240.00 Other Uses of Funds: Additional Proceeds 3,760.00 7,130,000.00 Jun 21, 2011 10:22 am Prepared by DBC Finance (Finance 6.016 Key Biscane:KEY-2011B) Page 2 BOND SUMMARY STATISTICS Village of Key Biscayne Series 2011A Dated Date Delivery Date Last Maturity Arbitrage Yield True Interest Cost (TIC) Net Interest Cost (NIC) All -In TIC Average Coupon Average Life (years) Duration of issue (years) Par Amount Bond Proceeds Total Interest Net Interest Total Debt Service Maximum Annual Debt Service Average Annual Debt Service Underwriter's Fees (per $1000) Average Takedown Other Fee Total Underwriter's Discount 08/01/2011 08/01/2011 11/01/2022 2.417260% 2.417260% 2.410000% 2.417260% 2.410000% 6.002 5.496 7,130,000.00 7,130,000.00 1,031,269.20 1,031,269.20 8,161,269.20 726,793.14 725,446.15 Bid Price 100.000000 Bond Component Par Average Average Value Price Coupon Life Bond Component 7,130,000.00 100.000 2.410% 6.002 7,130,000.00 6.002 Par Value + Accrued Interest + Premium (Discount) - Underwriter's Discount - Cost of Issuance Expense - Other Amounts All -In Arbitrage TIC TIC Yield 7,130,000.00 7,130,000.00 7,130,000.00 Target Value 7,130,000.00 7,130,000.00 7,130,000.00 Target Date 08/01/2011 08/01/2011 08/01/2011 Yield 2.417260% 2.417260% 2.417260% Jun 21, 2011 10:22 am Prepared by DBC Finance (Finance 6.016 Key Biscane:KEY-2011B) Page 3 BOND PRICING Village of Key Biscayne Series 2011A Bond Component Maturity Date Amount Rate Yield Price Bond Component: 11/01/2011 140,000 2.410% 2.410% 100.000 02/01/2012 140,000 2.410% 2.410% 100.000 05/01/2012 140,000 2.410% 2.410% 100.000 08/01/2012 140,000 2.410% 2.410% 100.000 11/01/2012 140,000 2.410% 2.410% 100.000 02/01/2013 140,000 2.410% 2.410% 100.000 05/01/2013 140,000 2.410% 2.410% 100.000 08/01/2013 140,000 2.410% 2.410% 100.000 11/01/2013 155,000 2.410% 2.410% 100.000 02/01/2014 150,000 2.410% 2.410% 100.000 05/01/2014 145,000 2.410% 2.410% 100.000 08/01/2014 145,000 2.410% 2.410% 100.000 11/01/2014 150,000 2.410% 2.410% 100.000 02/01/2015 155,000 2.410% 2.410% 100.000 05/01/2015 150,000 2.410% 2.410% 100.000 08/01/2015 150,000 2.410% 2.410% 100.000 11/01/2015 150,000 2.410% 2.410% 100.000 02/01/2016 155,000 2.410% 2.410% 100.000 05/01/2016 150,000 2.410% 2.410% 100.000 08/01/2016 150,000 2.410% 2.410% 100.000 11/01/2016 165,000 2.410% 2.410% 100.000 02/01/2017 160,000 2.410% 2.410% 100.000 05/01/2017 155,000 2.410% 2.410% 100.000 08/01/2017 155,000 2.410% 2.410% 100.000 11/01/2017 165,000 2.410% 2.410% 100.000 02/01/2018 165,000 2.410% 2.410% 100.000 05/01/2018 160,000 2.410% 2.410% 100.000 08/01/2018 160,000 2.410% 2.410% 100.000 11/01/2018 165,000 2.410% 2.410% 100.000 02/01/2019 170,000 2.410% 2.410% 100.000 05/01/2019 I65,000 2.410% 2.410% 100.000 08/01/2019 165,000 2.410% 2.410% 100.000 11/01/2019 165,000 2.410% 2.410% 100.000 02/01/2020 170,000 2.410% 2.410% 100.000 05/01/2020 170,000 2.410% 2.410% 100.000 08/01/2020 170,000 2.410% 2.410% 100.000 11/01/2020 170,000 2.410% 2.410% 100.000 02/01/2021 170,000 2.410% 2.410% 100.000 05/01/2021 170,000 2.410% 2.410% 100.000 08/01/2021 170,000 2.410% 2.410% 100.000 11/01/2021 185,000 2.410% 2,410% 100.000 02/01/2022 180,000 2.410% 2.410% 100.000 05/01/2022 175,000 2.410% 2.410% 100.000 08/01/2022 175,000 2.410% 2.410% 100.000 11/01/2022 185,000 2.410% 2.410% 100.000 7,130,000 Jun 21, 2011 10:22 am Prepared by 013C Finance (Finance 6.016 Key Biscane:KEY-2011B) Page 4 BOND PRICING Village of Key Biscayne Series 2011A Dated Date Delivery Date First Coupon Par Amount Original Issue Discount Production Underwriter's Discount Purchase Price Accrued Interest 08/01/2011 08/01/2011 11/01/2011 7,130,000.00 7,130,000.00 100.000000% 7,130,000.00 100.000000% Net Proceeds 7,130,000.00 Jun 21, 2011 10:22 am Prepared by DBC Finance (Finance 6.016 Key Biscane:KEY-2011B) Page 5 BOND DEBT SERVICE Village of Key Biscayne Series 2011A Period Annual Ending Principal Coupon Interest Debt Service Debt Service 11/01/2011 140,000 2.410% 42,958.25 182,958.25 182,958.25 02/01/2012 140,000 2.410% 42,114.75 182,114.75 05/01/2012 140,000 2.410% 41,271.25 181,271.25 08/01/2012 140,000 2.410% 40,427.75 180,427.75 11/01/2012 140,000 2.410% 39,584.25 179,584.25 723,398.00 02/01/2013 140,000 2.410% 38,740.75 178,740.75 05/01/2013 140,000 2.410% 37,897.25 177,897.25 08/01/2013 140,000 2.410% 37,053.75 177,053.75 11/01/2013 155,000 2.410% 36,210.25 191,210.25 724,902.00 02/01/2014 150,000 2.410% 35,276.38 185,276.38 05/01/2014 145,000 2.410% 34,372.63 179,372.63 08/01/2014 145,000 2.410% 33,499.00 178,499.00 11/01/2014 150,000 2.410% 32,625.38 182,625.38 725,773.39 02/01/2015 155,000 2.410% 31,721.63 186,721.63 05/01/2015 150,000 2.410% 30,787.75 180,787.75 08/01/2015 150,000 2.410% 29,884.00 179,884.00 11/01/2015 150,000 2.410% 28,980.25 178,980.25 726,373.63 02/01/2016 155,000 2.410% 28,076.50 183,076.50 05/01/2016 150,000 2.410% 27,142.63 177,142.63 08/01/2016 150,000 2.410% 26,238.88 176,238.88 11/01/2016 165,000 2.410% 25,335.13 190,335.13 726,793.14 02/01/2017 160,000 2.410% 24,341.00 184,341.00 05/0l/2017 155,000 2.410% 23,377.00 178,377.00 08/01/2017 155,000 2.410% 22,443.13 177,443.13 11/01/2017 165,000 2.410% 21,509.25 186,509.25 726,670.38 02/01/2018 165,000 2.410% 20,515.13 185,515.13 05/01/2018 160,000 2.410% 19,521.00 179,521.00 08/01/2018 160,000 2.410% 18,557.00 178,557.00 11/01/2018 165,000 2.410% 17,593.00 182,593.00 726,186.13 02/01/2019 170,000 2.410% 16,598.88 186,598.88 05/01/2019 165,000 2.410% 15,574.63 180,574.63 08/01/2019 165,000 2.410% 14,580.50 179,580.50 11/01/2019 165,000 2.410% 13,586.38 178,586.38 725,340.39 02/01/2020 170,000 2.410% 12,592.25 182,592.25 05/01/2020 170,000 2.410% 11,568.00 181,568.00 08/01/2020 170,000 2.410% 10,543.75 180,543.75 11/01/2020 170,000 2.410% 9,519.50 179,519.50 724,223.50 02/01/2021 170,000 2.410% 8,495,25 178,495.25 05/01/2021 170,000 2.410% 7,471.00 177,471.00 08/01/2021 170,000 2.410% 6,446.75 176,446.75 11/01/2021 185,000 2.410% 5,422.50 190,422.50 722,835.50 02/01/2022 180,000 2.410% 4,307.88 184,307.88 05/01/2022 175,000 2.410% 3,223.38 178,223.38 08/01/2022 175,000 2.410% 2,169.00 177,169.00 11/01/2022 185,000 2.410% 1,114.63 186,114.63 725,814.89 7,130,000 1,031,269.20 8,161,269.20 8,161,269.20