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1993.03.16_FAB_Minutes_Regular• TOWN OF HIGHLAND BEACH FINANCIAL ADVISORY BOARD REGULAR MEETING - MINUTES Tuesday, March 16, 1993 9:30 A.M. Chairman S. Myron Browner called the Regular Meeting to order in Com- mission Chambers at 9:30 A.M. In addition to the Chairman, Vice Chairman Victor P. Hadeed and Member Fred Firstenburg were present. Members Frank A. Magarace and Thomas J. Reid were absent. Also present were Town Manager Mary Ann Mariano, Finance Director Michael Seaman and members of the general public. Upon MOTION by MR. FIRSTENBURG/MR. HADEED, the Minutes of the Regular Meeting of January 19, 1993 were unanimously approved. Under New Business, the agenda was amended, without objection, to in- clude discussion of bond refinancing. OLD BUSINESS .It was noted that another $500,000 in T-Notes were purchased at a 4.94% yield; approximately 1.2 million dollars remains in the State Pooled Investment program. Chairman Browner advised he had requested additional information from Haas, Diaz & Co., the Town's auditors, which was not available when the Board had its review of the 1992 Financial Statement. In this regard, Mr. Browner said he had also requested of them that in the future a complete statement be presented to the Board in a more timely fashion, allowing for thorough review. The Chairman also noted that three (3) talent bank applications had been received. Discussion re Bond Refinancing. Kevin McCarty, 1st Vice President of Stifel, Nicolaus & Co., Inc, was invited to address the refunding analysis prepared for the Town's General Obligation Bonds, Series 1979. Areas covered included: Current debt service to maturity. .Cost of Redemption, July 1, 1993. .Front Loaded Savings Case (Sources & Uses Statement, Debt Service to Maturity [June 1, 1993], Savings Analysis). Financial Advisory Board Regular Meeting - Minutes March 16, 1993 Page 2 of 2 .Level Savings Case (Sources & Uses Statement, Debt Service to Maturity [June 1, 1993], Savings Analysis). .Extended Debt Service Case (Sources & Uses Statement, Debt Service to Maturity [June 1, 1993], Savings Analysis. It was the general consensus of the members, as well as that of the Town Manager and the Finance Director, that the Level Savings Case would appear to be of greatest financial benefit to the Town. However, Chairman Browner deferred making a recommendation at this time and instead called for another meeting before the Town Manager reports to the Town Commission on this matter at the March 30 Workshop Meeting. He explained his decision was based on the fact that two members were absent from this meeting and he preferred that all members have an opportunity to carefully review the analysis before making a recommendation. The recording secretary was instructed to poll the members for another meeting date within the next two weeks. (A copy of the analysis is attached to made part of these Minutes.) Review Status of Fire/Rescue Service. Substantial discussion took place as to when and how the switch from 40 county services to an agreement with the City of Delray Beach would be accomplished regarding equipment and personnel, with Town Manager Mariano advising that she was meeting with officials from Delray Beach on March 17 and would have more definitive information to share after that meeting. Regarding fee schedules, she advised that although Delray's rates would be based on services rendered, the valuation assessment method would be utilized to assess homeonwers, consistent with other general services provided in the Town's budget. Review February 28, 1993 Statements Aside from a question about the Workman Comp figure shown, which was answered satisfactorily by Mr. Seaman, the members agreed there was no need to review the statement. There being no further business to come before the Board at this time, the meeting was adjourned upon MOTION by MR. HADEED/MR. FIRSTENBURG at 10:20 A.M. dmt APPROVE: T. Myron Efrowner, Chairman Victor—P,, �Hadee,"ice Chairman Fred Firsten urg ATTEST: DATE: Revised Refunding Analysis TOWN OF HIGHLAND BEACH MARCH 11, 1993 Stifel, Nicola.us & Company, Incorporated • i • SERIES 1979 CURRENT DEBT SERVICE A • Town of Highland Beach, Florida General Obligation Bonds, Series 1979 Current Debt Service to Maturity Period Ending -------------------------------------------------------------------- Principal Coupon Interest Total Annual 7/1/93 40,000 7.50% 48,000 88,000 88,000 1/l/94 46,500 46,500 7/1/94 40,000 7.50% 46,500 86,500 133,000 1/1/95 45,000 45,000 7/1/95 40,000 7.50% 45,000 85,000 130,000 1/l/96 43,500 43,500 7/1/96 40,000 7.50% 43,500 83,500 127,000 1/1/97 42,000 42,000 7/1/97 50,000 7.50% 42,000 92,000 134,000 1/1/98 40,125 40,125 7/1/98 125,000 7.50% 40,125 165,125 205,250 1/1/99 35,438 35,438 •7/1/99 135,000 7.50% 35,438 170,438 205,875 1/1/00 30,375 30,375 7/1/00 140,000 7.50% 30,375 170,375 200,750 1/1/01 25,125 25,125 7/1/01 150,000 7.50% 25,125 175,125 200,250 1/1/02 19,500 19,500 7/1/02 160,000 7.50% 19,500 179,500 199,000 1/1/03 13,500 13,500 7/1/03 175,000 7.50% 13,500 188,500 202,000 1/1/04 6,938 6,938 7/1/04 -------------------------------------------------------------------- 185,000 7.50% 6,938 191,938 198,875 1,280,000 744,000 2,024,000 Callable 7/01/90 @ 1/4% per year to maturity (not of exceed 3%) • e 1 COST OF REDEMPTION • JULY 19 1993 n e v 0 Town of Highland Beach, Florida General Obligation Bonds Refunded Debt Service to Call MaturityCost Premium of Date Principal % -------------------------------- Premium Interest Total Defeasance @ 3.00% 7/1/93 7/1/94 40,000 40,000 0.00% 0.25% 0 48,000 88,000 87,568 7/1/95 40,000 0.50% 100 200 40,100 40,200 39,903 40,002 7/1/96 7/1/97 40,000 50,000 0.75% 1.00% 300 40,300 40,102 7/1/98 125,000 1.25% 500 1,562 50,500 126,563 50,252 125,941 7/1/99 7/1/00 135,000 140,000 1.50% 1.75% 2,025 137,025 136,352 7/1/01 150,000 2.00% 2,450 3,000 142,450 153,000 141,750 152,248 7/1/02 7/1/03 160,000 175,000 2.25% 2.50% 3,600 163,600 162,796 7/1/04 185,000 ------------------------------ 2.75% 4,375 5,087 179,375 190,088 ------------------------- 178,493 189,153 1,280,000 23,200 48,000 1,351,200 1,344,560 • 2 0 11 i v FRONT LOADED SAVINGS CASE a Ic Town of Highland Beach, Florida General Obligation Bonds Front Loaded Savings Case Sources and Uses Statement SOURCES Bond Proceeds Payments Due on Refunded Bonds USES Cost of Defeasance to Call Bond Insurance Underwriter's Discount Cost of Issuance Legal Rating Agencies Trustee/Escrow Agent Printing Miscellaneous 3 V 1,335,000 88,000 -------------- 1,423,000 -------------- -------------- 1,344,560 17,500 2.00% 26,700 12,500 12,500 3,500 2,500 3,240 -------------- 1,423,000 • Town of Highland Beach, Florida General Obligation Refunding Bonds Front Loaded Savings Case Dated and Closed: June 1, 1993 Debt Service to Maturity Period Ending --------------------------------------------------------------------------- Principal Coupon Interest Total Annual 1/1/94 37,374 37,374 7/1/94 0 2.75% 32,035 32,035 69,409 1/1/95 32,035 32,035 7/1/95 2-5,000 3.50% 32,035 57,035 89,070 1/1/96 31,598 31,598 7/1/96 65,000 4.00% 31,598 96,598 128,195 1/1/97 30,298 30,298 7/1/97 75,000 4.25% 30,298 105,298 135,595 1/1/98 28,704 28,704 7/1/98 150,000 4.50% 28,704 178,704 207,408 1/1/99 25,329 25,329 7/1/99 155,000 4.65% 25,329 180,329 205,658 • 1/1/00 21,725 21,725 7/1/00 155,000 4.75% 21,725 176,725 198,450 1/1/01 18,044 18,044 7/1/01 165,000 4.90% 18,044 183,044 201,088 1/1/02 14,001 14,001 7/1/02 170,000 5.00% 14,001 184,001 198,003 1/1/03 9,751 9,751 7/1/03 185,000 5.15% 9,751 194,751 204,503 1/1/04 4,988 4,988 7/1/04 --------------------------------------------------------------------------- 190,000 5.25% 4,988 194,988 199,975 1,335,000 502,352 1,837,352 • 4 u Town of Highland Beach, Florida General Obligation Bonds Front Loaded Savings Case Savings Analysis Total * Annual Period Current Proposed Proposed Annual Ending -- --- Debt Service ----------------------------------------------------------------------- Debt Service Debt Service Savings Savings 7/1/93 0 0 0 l/l/94 46,500 37,374 9,126 7/1/94 86,500 32,035 69,409 54,465 63,591 1/1/95 45,000 32,035 12,965 7/1/95 85,000 57,035 89,070 27,965 40,930 1/l/96 43,500 31,598 11,903 7/1/96 83,500 96,598 128,195 (13,098) (1,195) 1/1/97 42,000 30,298 11,703 7/1/97 92,000 105,298 135,595 (13,298) (1,595) 1/l/98 40,125 28,704 11,421 7/1/98 165,125 178,704 207,408 (13,579) (2,156) 1/1/99 35,438 25,329 10,109 . 7/1/99 170,438 180,329 205,658 (9,891) 218 1/1/00 30,375 21,725 8,650 7/1/00 170,375 176,725 198,450 (6,350) 2,300 1/1/01 25,125 18,044 7,081 7/1/01 175,125 183,044 201,088 (7,919) (838) 1/1/02 19,500 14,001 5,499 7/1/02 179,500 184,001 198,003 (4,501) 998 1/1/03 13,500 9,751 3,749 7/1/03 188,500 194,751 204,503 (6,251) (2,502) 1/1/04 6,938 4,988 1,950 7/1/04 ------------------------------------------------------------------------------- 191,938 194,988 199,975 (3,050) (1,100) 1,936,000 1,837,352 1,837,352 98,648 Net Present Value Savings @ Bond Yield 94,661 Savings as a % of Net Bonds Refunded 7.63% * Net of Town Contribution to Sources of Funds • 5 U 11 LEVEL SAVINGS CASE e • Town of Highland Beach, Florida General Obligation Bonds Level Savings Case Sources and Uses Statement SOURCES Bond Proceeds 1,335,000 Payments Due on Refunded Bonds 88,000 -------------- 1,423,000 USES Cost of Defeasance to Call 1,344,560 Bond Insurance 17,500 • Underwriter's Discount 2.00% 26,700 • Cost of Issuance Legal 12,500 Rating Agencies 12,500 Trustee/Escrow Agent 3,500 Printing 2,500 Miscellaneous 3,240 -------------- 1,423,000 -------------- -------------- R • Town of Highland Beach, Florida General Obligation Refunding Bonds Level Savings Case Dated and Closed: June 1, 1993 Debt Service to Maturity Period Ending --- - Principal Coupon -------------------------------------------- Interest Total Annual 1/1/94 36,568 36,568 7/l/94 50,000 2.75% 31,344 81,344 117,911 1/1/95 30,656 30,656 7/1/95 55,000 3.50% 30,656 85,656 116,313 1/1/96 29,694 29,694 7/1/96 60,000 4.00% 29,694 89,694 119,388 1/1/97 28,494 28,494 7/1/97 65,000 4.25% 28,494 93,494 121,988 1/1/98 27,113 27,113 7/1/98 140,000 4.50% 27,113 167,113 194,225 1/1/99 23,963 23,963 7/1/99 145,000 4.65% 23,963 168,963 192,925 1/1/00 7/1/00 150,000 20,591 20,591 4.75% 20,591 170,591 191,183 1/1/01 17,029 17,029 7/1/01 155,000 4.90% 17,029 172,029 189,058 1/1/02 13,231 13,231 7/1/02 160,000 5.00% 13,231 173,231 186,463 1/1/03 9,231 9,231 7/1/03 175,000 5.15% 9,231 184,231 193,463 1/1/04 4,725 4,725 7/1/04 180,000 ------------------------------------------------------------ 5.25% 4,725 184,725 189,450 1,335,000 477,364 1,812,364 7 • Town of Highland Beach, Florida General Obligation Bonds Level Savings Case Savings Analysis Total * Annual Period Current Proposed Proposed Annual --Ending- Debt Service Debt Service --------------------------------------------------- Debt Service Savings Savings 7/1/93 0 0 1/1/94 46,500 36,568 9,932 7/1/94 86,500 81,344 117,911 5,156 15,089 1/1/95 45,000 30,656 14,344 7/1/95 85,000 85,656 116,313 (656) 13,688 1/1/96 43,500 29,694 13,806 7/1/96 83,500 89,694 119,388 (6,194) 7,613 1/1/97 42,000 28,494 13,506 7/1/97 92,000 93,494 121,988 (1,494) 12,013 1/1/98 40,125 27,113 13,013 7/1/98 165,125 167,113 194,225 (1,988) 11,025 1/1/99 35,438 23,963 11,475 7/1/99 170,438 168,963 192,925 1,475 12,950 1/1/00 30,375 20,591 9,784 7/1/00 170,375 170,591 191,183 (216) 9,568 1/1/01 25,125 17,029 8,096 7/1/01 175,125 172,029 189,058 3,096 11,193 1/1/02 19,500 13,231 6,269 7/1/02 179,500 173,231 186,463 6,269 12,538 1/1/03 13,500 9,231 4,269 7/1/03 188,500 184,231 193,463 4,269 8,538 1/1/04 6,938 4,725 2,213 7/1/04 --- ---------------------------------------------------------------------------- 191,938 184,725 189,450 7,213 9,425 1,936,000 1,812,364 1,812,364 123,636 Net Present Value Savings @ Bond Yield 95,718 Savings as a % of Net Bonds Refunded 7.720 * Net of Town Contribution to Sources of Funds • EXTENDED DEBT SERVICE CASE 0 Town of Highland Beach, Florida General Obligation Bonds Extended Debt Service Case Sources and Uses Statement SOURCES Bond Proceeds Payments Due on Refunded Bonds USES Cost of Defeasance to Call Bond Insurance • Underwriter's Discount Cost of Issuance Legal Rating Agencies Trustee/Escrow Agent Printing Miscellaneous 0 0 1,340,000 88,000 -------------- 1,428,000 -------------- -------------- 1,344,560 25,000 2.00% 26,800 12,500 12,500 3,500 2,500 640 -------------- 1,428,000 -------------- -------------- Town of Highland Beach, Florida eral Obligation Refunding Bonds ended Debt Service Case Dated and Closed: June 1, 1993 Debt Service to Maturity Period Ending --------------------------------------------------------------------------- Principal Coupon Interest Total Annual 1/1/94 40,189 40,189 7/1/94 35,000 2.75% 34,448 69,448 109,636 1/1/95 33,966 33,966 7/1/95 45,000 3.50% 33,966 78,966 112,933 1/1/96 33,179 33,179 7/l/96 45,000 4.00% 33,179 78,179 111,358 1/1/97 32,279 32,279 7/1/97 45,000 4.25% 32,279 77,279 109,558 1/1/98 31,323 31,323 7/1/98 50,000 4.50% 31,323 81,323 112,645 1/1/99 30,198 30,198 7/1/99 50,000 4.65% 30,198 80,198 110,395 1/1/00 29,035 29,035 7/1/00 55,000 4.75% 29,035 84,035 113,070 1/1/01 27,729 27,729 7/1/01 55,000 4.90% 27,729 82,729 110,458 1/1/02 26,381 26,381 7/1/02 60,000 5.00% 26,381 86,381 112,763 1/1/03 • 24,881 24,881 7/1/03 60,000 5.15% 24,881 84,881 109,763 1/1/04 23,336 23,336 7/1/04 65,000 5.25% 23,336 86,336 111,673 1/1/05 21,630 21,630 7/1/05 70,000 5.40% 21,630 91,630 113,260 1/1/06 19,740 19,740 7/1/06 75,000 5.60% 19,740 94,740 114,480 1/1/07 17,640 17,640 7/1/07 75,000 5.60% 17,640 92,640 110,280 1/1/08 15,540 15,540 7/1/08 80,000 5.60% 15,540 95,540 111,080 1/1/09 13,300 13,300 7/1/09 85,000 5.60% 13,300 98,300 111,600 1/1/10 10,920 10,920 7/1/10 90,000 5.60% 10,920 100,920 111,840 1/1/11 8,400 8,400 7/1/11 95,000 5.60% 8,400 103,400 111,800 1/1/12 5,740 5,740 7/1/12 100,000 5.60% 5,740 105,740 111,480 1/1/13 2,940 2,940 7/1/13 --------------------------------------------------------------------------- 105,000 5.60% 2,940 107,940 110,880 1,340,000 ------------------------------------ 690,949 ------------------ 2,230,949 ------------------- 10 Town of Highland Beach, Florida O General Obligation Bonds Otended Debt Service Case avinas Analvsis Total * Annual Period Ending Current Proposed Debt Service Debt Service ----------------------------------------- Proposed Debt Service Savings Annual Savings 7/1/93 0 1/1/94 46,500 40,189 6,311 7/1/94 1/1/95 86,500 45,000 69,448 109,636 17,053 23,364 33,966 11,034 7/1/95 85,000 78,966 112,933 6,034 17,068 1/1/96 43,500 33,179 10,321 7/1/96 83,500 78,179 111,358 5,321 15,643 1/1/97 42,000 32,279 9,721 7/1/97 92,000 77,279 109,558 14,721 24,443 1/1/98 40,125 31,323 8,803 7/1/98 165,125 81,323 112,645 83,803 92,605 1/1/99 35,438 30,198 5,240 7/1/99 170,438 80,198 110,395 90,240 95,480 1/1/00 30,375 29,035 1,340 7/1/00 170,375 84,035 113,070 86,340 87,680 1/1/01 25,125 27,729 (2,604) 7/1/01 175,125 82,729 110,458 92,396 89,793 1/1/02 19,500 26,381 (6,881) 179,500 86,381 112,763 93,119 86,238 •7/1/02 1/1/03 13,500 24,881 (11,381) 7/1/03 188,500 84,881 109,763 103,619 92,238 1/1/04 6,938 23,336 (16,399) 7/1/04 191,938 88,336 111,673 103,601 87,203 1/1/05 21,630 (21,630) 7/1/05 91,630 113,260 (91,630) (113,260) 1/1/06 19,740 (19,740) 7/1/06 94,740 114,480 (94,740) (114,480) 1/1/07 17,640 (17,640) 7/1/07 92,640 110,280 (92,640) (110,280) 1/1/08 15,540 (15,540) 7/1/08 95,540 111,080 (95,540) (111,080)' 1/1/09 13,300 (13,300) 7/1/09 98,300 111,600 (98,300) (111,600) 1/1/10 10,920 (10,920) 7/1/10 100,920 111,840 (100,920) (111,840) 1/1/11 8,400 (8,400) 7/1/11 103,400 111,800 (103,400) (111,800) 1/1/12 5,740 (5,740) 7/1/12 105,740 111,480 (105,740) (111,480) 1/1/13 2,940 (2,940) 7/1/13 -------------------------------------------------------------------------------- 107,940 110,880 (107,940) (110,880) 1,936,000 2,230,949 2,230,949 (294,949) Net Present Value Savings % Savings @ Bond Yield 57,847 - as a of ------------------------------------------------------------------ Net Bonds Refunded 4.67$ Net of Town --------------------------------- Contribution to Sources of Funds --------------